Document:

Exhibit
10.1

EXECUTION
COPY

CONSULTING AGREEMENT

This Consulting
Agreement (“Agreement”), dated this 18th day of April, 2007 (“Effective Date”),
is by and between Regis Corporation, a Minnesota corporation with its address
at 7201 Metro Boulevard, Minneapolis, MN 55439 (“Regis”), and Empire Beauty
School Inc., a Pennsylvania corporation with its address at 396 Pottsville-St.
Claire Highway, Pottsville, Pennsylvania 17901 (“Empire”).

BACKGROUND

A.            Regis
and Empire have entered into a certain Contribution Agreement dated of even
date herewith (the “Contribution Agreement”), pursuant to which Regis and
Empire will each contribute their respective cosmetology school business to a
new entity principally owned by Regis and Empire, subject to the fulfillment of
certain conditions set forth in the Contribution Agreement.  The business to be contributed by Regis is
the “Regis Business” (as defined in the Contribution Agreement).

B.            Empire
has been engaged in the ownership and operation of cosmetology schools for
several years and has significant management expertise in, and administrative
infrastructure designed for, the management of cosmetology schools.

C.            In
anticipation of the consummation of the transaction under the Contribution
Agreement and in consideration of the mutual covenants of the parties contained
in the Contribution Agreement and contained herein, Regis desires for Empire to
provide certain consulting services in connection with the operation by Regis
of the Regis Business, and Empire is willing to provide such services, all in
accordance with the terms and conditions set forth herein.

NOW, THEREFORE, intending to be legally bound hereby,
Regis and Empire agree as follows:

1.             Consulting Services.

(a)           During
the Consulting Term (as hereinafter defined), Empire shall conduct a review of
the operations of the Regis Business, and shall make recommendations for
improvements to such operations, including, but not limited to, in the areas of
operations described on Schedule I hereto.  The services to be provided by Empire
hereunder shall be provided by Frank Schoeneman (“Schoeneman”), Chief Executive
Officer of Empire and Michael Bouman (“Bouman”), President and Chief Operating
Officer of Empire, or such other qualified employees or agents of Empire as
designated by Schoeneman or Bouman. 
Empire shall, to the extent the parties deem appropriate, also assist in
the implementation of Empire’s recommendations. 
The services to be provided by Empire hereunder are hereinafter referred
to as the “Services.”

(b)           Notwithstanding
any other provision of this Agreement, Empire shall not have any authority and
shall not be responsible for the management of any of Regis’s policies,

operations or administration of Title IV federal and/or state financial
assistance funds, student financial assistance programs or any agreements with
any state or federal agencies relating to such programs and Regis shall retain
and be responsible for the management of such programs and the compliance with
all such agreements.

2.             Regis Obligations.  Regis will, either directly or through its
subsidiaries that conduct the Regis Business (“Regis Subsidiaries”), continue
to employ the faculty and staff necessary to conduct the day to day operations
of the Regis Business.  Regis will, and will cause each
Regis Subsidiary to, cooperate with Empire and provide such information and
data, and access to personnel and facilities, as is reasonably requested by
Empire to perform the Services hereunder.

3.             Regis Liaison.  Regis shall designate an employee (“Regis Liaison”)
of sufficient knowledge of the Regis Business and the cosmetology industry to
act as liaison with Empire to facilitate the provision of the Services and to
receive Empire’s recommendations, who shall be vested with all necessary status
and authority to fulfill that responsibility. 
The initial Regis Liaison shall be Mark Foslund.  Empire will, on a regular basis during the
Consulting Term, consult with and report to the Regis Liaison regarding the
discharge of its duties hereunder, its findings regarding, and its
recommendations with respect to, the Regis Business, and such other matters as
the parties deem appropriate.

4.             Term.  The term of this Agreement (“Consulting Term”)
shall commence as of the Effective Date and shall continue until the earlier to
occur of (i) the consummation of the Closing (as defined in the Contribution
Agreement), (ii) the termination of the Contribution Agreement without the
consummation of the Closing, or (iii) written notice from either party to the
other that it elects to terminate this Agreement.

5.             Liability.  It is expressly understood by the parties
hereto, that notwithstanding anything herein to the contrary, Empire’s
obligations under this Agreement shall be to serve as a consultant and limited
to the provision of the Services and that Empire does not assume, and shall not
be responsible for, any of the operations of the Regis Business, or any
liabilities, claims, demands or any other obligations whatsoever relating to
the Regis Business.  Neither Empire nor
any director, officer, employee, agent or representative of Empire
(collectively with Empire, the “Empire Parties”) shall (i) have any obligation
to act for or on behalf of Regis nor (ii) be liable, responsible or accountable
in damages or otherwise to Regis, any Regis Subsidiary, or any of their
respective directors, officers, employees or shareholders, for any action taken
in performing the Services, unless such action constitutes gross negligence or
willful misconduct or a breach of this Agreement.  The provisions of this Section 5 shall
survive the termination of this Agreement and shall inure to the benefit of the
Empire Parties and their successors and assigns. 

6.             Indemnification.  Regis shall indemnify, defend and hold
harmless the Empire Parties from any and all liabilities, judgments,  actions, claims, causes of action, demands,
losses, damages, costs and expenses (including reasonable attorneys fees and
expenses) (collectively “Losses”) threatened against, incurred or suffered by
any Empire Party in connection with a claim brought by Regis or any third party
(but not any claim brought by another Empire Party) arising from or by reason
of the provision of the Services under this

Agreement except to the
extent any of such Losses arise from the gross negligence or willful misconduct
of the Empire Party or a breach of this Agreement by any Empire Party.  The provisions of this Section 6 shall
survive the termination of this Agreement and shall inure to the benefit of the
Empire Parties and their successors and assigns.

7.             Confidentiality.

(a)                                  For
purposes of this Agreement all information regarding Regis or the Regis
Business that is (i) provided to an Empire Party by Regis, a Regis Subsidiary
or one of their respective representatives in furtherance of the performance of
Services, or (ii) obtained by an Empire Party in performing the Services, shall
be treated as “Confidential Information.” 
Notwithstanding the foregoing, no such information shall be deemed
Confidential Information if it:  (a) is
at the time of disclosure or thereafter becomes available to the general public
other than as a result of disclosure by an Empire Party; (b) becomes available
to an Empire Party on a nonconfidential basis from a source (other than Regis,
a Regis Subsidiary or one of their respective representatives), provided that
the Empire Party does not know of any restrictions on the rights of such source
to disclose it or (c) was known to or in the possession of an Empire Party on a
nonconfidential basis immediately prior to the time of disclosure.

(b)                                 Except
as necessary to provide the Services hereunder, Empire shall not, unless
required by law, disclose any of the Confidential Information, in any form to
any person, firm, corporation or other entity. 
Empire shall safeguard the Confidential Information to the same extent
that it safeguards its own confidential materials or data relating to its own
business, but always at least with a reasonable degree of care.  Empire shall not use the Confidential
Information for any purpose not directly related to the Services. The
provisions of this Section 7 shall survive the termination of this Agreement
and shall inure to the benefit of the Regis and its successors and assigns.

8.             Independent
Contractor; Lack of Authority.  It
is understood and agreed that Empire is an independent contractor under this
Agreement.  Nothing herein shall be
deemed to constitute a partnership or joint venture between the parties hereto
or to create an employer/employee relationship between any of Regis’ or any Regis
Subsidiary’s employees and Empire on the one hand, or any of Empire’s employees
and Regis or any Regis Subsidiary on the other hand.  Empire is not an agent of Regis and has no
authority whatsoever to obligate Regis by contract or otherwise and will not
represent anything to the contrary to any third party.

9.             Non-Solicitation.  During
the Consulting Term, and if the Contribution Agreement is terminated
without the consummation of the Closing, for one year thereafter, Regis will
not directly or indirectly employ any person who is an employee of Empire as of
the Effective Date or who becomes an employee of Empire during the Consulting
Term, or directly or indirectly solicit, induce or attempt to induce, any such
employee of Empire to terminate his or her employment with Empire.  During
the Consulting Term, and if the Contribution Agreement is terminated
without the consummation of the Closing, for one year thereafter, Empire will
not directly or indirectly employ any person who is an employee of Regis or any

Regis Subsidiary as of
the Effective Date or who becomes an employee of Regis or any Regis Subsidiary
during the Consulting Term, or directly or indirectly solicit, induce or
attempt to induce, any such employee of Regis or any Regis Subsidiary to terminate
his or her employment with Regis or any Regis Subsidiary.  Each party acknowledges that a breach of its
obligations under this Section 9 will result in irreparable and continuing
damage to the other party for which there will be no adequate remedy at law;
and agrees that in the event of any breach of the aforesaid obligations, the
non-breaching party and its successors and assigns shall be entitled to
injunctive relief and to such other and further relief as may be proper.

10.           Delay.  Neither party shall be liable to the other on
account of any failure to perform or on account of delay in the performance of
any obligation under this Agreement if and to the extent that such failure or
delay shall be due to a cause beyond the control of such party and that, by the
exercise of reasonable diligence, such party could not reasonably have been
expected to avoid.  In no event shall
Empire be liable to Regis for any delay in performance occasioned by strikes or
other labor or personnel difficulties.

11.           Miscellaneous.

(a)           None
of the rights or obligations hereunder shall be assignable by either party
hereto without the express written consent of the other party hereto.

(b)           This
Agreement is the entire agreement of the parties with respect to the provision
of the Services by Empire, and supersedes all prior or contemporaneous
agreements, arrangements, and understandings, whether oral or written,
regarding such subject matter.  No
changes in, modifications of, or additions to this Agreement shall be valid
unless the same shall be in writing and signed by both parties.

(c)           If
any provision of this Agreement shall be determined to be contrary to law and
unenforceable by any court of competent jurisdiction, the remaining provisions
shall be severable and enforceable in accordance with their terms.

(d)           This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, and all of which together shall constitute one and the same
instrument.

(e)           This
Agreement shall be governed by and construed in accordance with the substantive
laws of the State of Delaware without regard to conflicts of laws principles.

(f)            No
failure or delay on the part of a party in exercising any right hereunder shall
operate as a waiver of, or impair, any such right.  No single or partial exercise of any such
right shall preclude any other or further exercise thereof or the exercise of
any other right.  No waiver of any such
right shall be deemed a waiver of any other right hereunder.

(g)           All
notices, requests, demands and other communications hereunder shall be deemed
to have been duly given if the same shall be in writing and shall be delivered
personally or sent by facsimile (with confirmed receipt), or by nationally
recognized delivery service.  Any such
notice shall be effective upon delivery.

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the Effective Date.

 

	
   

  	
  REGIS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul D.
  Finkelstein

  	
   

  
	
   

  	
   

  	
  Name: Paul D.
  Finkelstein

  
	
   

  	
   

  	
  Title: Chairman and
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPIRE BEAUTY
  SCHOOL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Franklin K.
  Schoeneman

  	
   

  
	
   

  	
   

  	
  Name: Franklin
  K. Schoeneman

  
	
   

  	
   

  	
  Title: Chief
  Executive Officer

  

 

Schedule
I

The following sets
forth the initial areas of the Regis Business that the parties intend for Empire
to review as part of the Services:

·                  Recommendations regarding hiring of
all new or vacant positions and related compensation determinations;

·                  Recommendations regarding personnel
terminations and timing of such terminations;

·                  Recommendations with respect to the
development and implementation of a uniform Code of Conduct and Ethics Policy;

·                  Recommendations with respect to
internet lead development activities;

·                  Recommendations with respect to
call-routing and lead distribution;

·                  Consideration of allowing access by
students within the Regis Business to Empire’s on-line suggestion box;

·                  Participation by all Regis general
managers, school directors and admission representatives in profile testing and
interviews;

·                  Off-site training in the areas of admissions,
operations, and database;

·                  Consideration of allowing access by
Regis-school-based management to Empire’s portal for improved communications as
well as access to manuals, forms, and policies; and

·                  Provision
to school-based management of access to Empire’s e-mail server.Exhibit
10.1

SNAP-ON
INCORPORATED

NON-QUALIFIED STOCK OPTION AGREEMENT

THIS NON-QUALIFIED STOCK OPTION AGREEMENT, is granted
by SNAP-ON INCORPORATED (the “Company”) to each individual receiving and
accepting the offer contained in the Non-Qualified Stock Option Grant Offer
Letter (each such person being known as the “Optionee”) pursuant to the Company’s
2001 Incentive Stock and Awards Plan (the “Plan”).

WHEREAS, the Company believes it to be in the best
interests of the Company, its subsidiaries and its stockholders for its
officers and other key employees to obtain or increase their stock ownership
interest in the Company so that they will have a greater incentive to work for
and manage the Company’s affairs in such a way that its shares may become more
valuable; and

WHEREAS, the Optionee is employed by the Company or
one of its subsidiaries as an officer or other key employee and has been
selected by the Committee to receive an option;

NOW, THEREFORE, in consideration of the premises and
of the services to be performed by the Optionee, the Company and the Optionee
hereby agree as follows:

1.     OPTION GRANT

Subject to the terms of this Agreement and the Plan, the Company grants
to the Optionee an option to purchase the number of shares of Common Stock of
the Company as set forth in the Non-Qualified Stock Option Grant Offer Letter
(the “Offer”) under the column titled “Quantity Granted” and at the price per
share set forth in the Offer under the column titled “Grant Price”.  This option is not intended to qualify
as an “incentive stock option” within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”).

2.     TIME OF EXERCISE

Subject to the termination provisions of paragraphs 3,
4 and 5, and provided that the Optionee is an employee of the Company or one of
its subsidiaries on such date, the Optionee may purchase the non-qualified
option shares pursuant to the schedule set forth in the Offer under the column
titled “Vesting Schedule”.

If the Optionee
terminates employment from the Company and its subsidiaries, only those option
shares for which the right to purchase has accrued as of the date of such
termination may be purchased after such termination (subject to the provisions
of paragraphs 3, 4 and 5).  If the
Optionee takes an unpaid leave of absence, then the Committee may defer the
dates on which the Optionee may first purchase the option shares to take into
account such leave of absence.

3.     TERMINATION OF OPTION

The Optionee may not exercise this option after, and
this portion of the option will terminate without notice to the Optionee on,
the earlier of:

(a)   Six
(6) months after the date of the Optionee’s termination of employment from the
Company and its subsidiaries for any reason other than for Cause or due to
Disability, death or Retirement;

(b)   The
date the Company or one of its subsidiaries terminates the Optionee’s
employment for Cause;

(c)   Twelve
(12) months after the date of termination of the Optionee’s employment from the
Company and its subsidiaries by reason of death or Disability;

(d)   Three
(3) years after the Optionee terminates employment from the Company and its
subsidiaries on account of Retirement; or

(e)   Ten
(10) years from the date of this Agreement.

For purposes of
this paragraph 3, termination shall occur at 11:59 P.M. (Central Time) on the
applicable date described above, except that if the Optionee is terminated for
Cause, termination shall occur immediately at the time of such termination.

The Company is
under no obligation, whatsoever, to update, remind or notify Optionee of any
expiration date prior to the expiration of the options, regardless of whether
Company voluntarily provides an update to Optionee or any other Plan
Participant.

If the Company divests a subsidiary, division or other business unit,
then the Committee will have the discretion to determine whether or not such
divestiture of a subsidiary, division or other business unit results in termination
of the Optionee’s employment from the Company and its subsidiaries for purposes
of this Agreement, which discretion the Committee may exercise on a case by
case basis.

In addition, if the Optionee takes a military, sick
leave or other bona fide leave of absence from the Company and its
subsidiaries, the Optionee will be considered to have terminated employment
from the Company and its subsidiaries on the later of (i) the 91st day of such leave, or (ii) the last day that
the Optionee’s right to reemployment following the end of such leave is
guaranteed by law or contract with the Company or a subsidiary.

 2
 

4.     TERMINATION FOR CAUSE

If the Company or one of its subsidiaries terminates
the Optionee’s employment for Cause, then the Committee may determine that any
exercises of this option within the six (6) month period prior to such
termination will be deemed of no force and effect and the Committee may pursue
any remedy or proceeding available to compel the Optionee to return to the
Company any profits the Optionee realized (directly or indirectly) from
exercising this option during such period.

5.     DETRIMENTAL ACTIVITY

(a)   If,
within one (1) year after the Optionee’s termination of employment from the
Company and its subsidiaries, the Company becomes aware that the Optionee had
engaged in activity prior to his or her termination that would have constituted
Cause for termination had the Company known of such activity, then the
Committee may re-characterize the Optionee’s termination as a termination for
Cause and/or may redetermine the date of such termination.  In such an event, the Optionee’s right to exercise
this option will be terminated as of the Optionee’s deemed date of termination
for Cause.

(b)   If,
within six (6) months after the Optionee’s termination of employment from the
Company and its subsidiaries, the Company becomes aware that the Optionee has
engaged in Detrimental Activity subsequent to his or her termination, then the
Committee may determine that the Optionee’s right to exercise this option will
be terminated as of the date the Optionee engaged in the Detrimental Activity.

(c)   If
the Optionee exercised this option during the period beginning six (6) months
before the deemed date of termination for Cause in accordance with (a) above,
or the date the Optionee engaged in Detrimental Activity in accordance with (b)
above, and ending on the date of the Committee’s determination, then such
exercise will be deemed of no force and effect and the Committee reserves its
right to pursue any remedy or proceeding available to compel the Optionee to
return to the Company any profits the Optionee realized (directly or
indirectly) from exercising this option during such period.

(d)   If
an allegation of Detrimental Activity by the Optionee is made to the Committee,
then the Optionee’s ability to exercise this option will be suspended for the
period the Committee determines to permit the Committee to investigate the
allegation.

(e)   Notwithstanding
any other provision hereof, the provisions of this Section 5 shall be null and
void and of no effect upon the occurrence of a Change of Control (as defined in
the Plan).

 3
 

6.     EXERCISE PROCEDURES

(a)   The
Optionee may exercise this option in whole or in part only with respect to any
shares for which the right to exercise shall have accrued pursuant to paragraph
2 and only so long as paragraphs 3 and 5 do not prohibit such exercise.

(b)   This
option may be exercised in accordance with such procedures as the Company may
determine.  Currently, the Company has
entered into an agreement with The Gallagher Group of Smith Barney to process
stock option exercises.  Customer service
representatives from the Gallagher Group are available from 8 a.m. – 4:30 p.m.
CST on all New York Stock Exchange trading days.  They can be reached by phone or e-mail as
follows:

	
  Toll Free, U.S.

  	
   

  	
  1-888-609-3534

  
	
  Non-U.S.

  	
   

  	
  312-419-3264

  
	
  Email

  	
   

  	
  gallaghergroup@smithbarney.com

  

An Optionee must talk to a Gallagher Group customer service
representative in order to exercise any grants. 
Transactions will not be processed based upon e-mail or voicemail
instructions.

(c)   The Optionee must deliver a notice of option
exercise, accompanied by payment of the purchase price and such additional
amount (if any) as necessary to satisfy the Company’s tax withholding
obligations, and such other documents or representations as may reasonably be
requested to comply with securities, tax or other laws then applicable to the
exercise of the option.  Delivery may be
made in person, by nationally-recognized delivery service that guarantees overnight
delivery, by facsimile, or by such other method as may be accepted by The
Gallagher Group. A notice of option exercise received after the date of
termination (as provided in paragraph 3) shall be null and void.

(d)   The Optionee may pay the purchase price in
one or more of the following forms:

i.              a
check for the purchase price of the shares being purchased; or

ii.             delivery
of shares of Common Stock (including by attestation) that the Optionee has
owned for at least six (6) months and that have a Fair Market Value (determined
on the date of delivery) equal to the purchase price of the shares being
purchased; or

iii.            delivery
(including by facsimile) of an executed irrevocable option exercise form
together with irrevocable instructions, in a form acceptable to the Company or
The Gallagher Group, to a broker-dealer to sell or margin a sufficient portion
of the shares of Common Stock issuable upon exercise of this option and deliver
the sale or margin loan proceeds directly to the Company or The Gallgher Group to
pay for the exercise price.

(e)   The Optionee may satisfy any tax withholding
obligation of the Company arising from the exercise of this option, in whole or
in part, by paying such tax obligation in cash or by 

 4
 

check, or by
electing to have the Company withhold shares of Common Stock having a Fair
Market Value on the date of exercise equal to the amount required to be
withheld, subject to such rules as the Committee may adopt.  In any event, the Company reserves the right
to withhold from any compensation otherwise payable to the Optionee such amount
as the Company determines is necessary to satisfy the Company’s tax withholding
obligations arising from the exercise of this option.

(f)    Notwithstanding the foregoing, Canadian
residents will not be allowed to pay the exercise price or any taxes due by
swapping previously owned shares, through physical delivery or attestation.

7.     DEFINITIONS

(a)   “Cause” means termination of employment as a result of (i) the failure of the
Optionee to perform or observe any of the terms or provisions of any written
employment agreement between the Optionee and the Company or its subsidiaries
or, if no written agreement exists, the gross dereliction of the Optionee’s
duties with respect to the Company or any of its subsidiaries, as applicable;
(ii) the failure of the Optionee to comply fully with the lawful directives of
the Board of Directors of the Company or its subsidiaries, as applicable, or
the officers or supervisory employees to whom the Optionee is reporting; (iii)
the Optionee’s dishonesty, misconduct, misappropriation of funds, or disloyalty
or disparagement of the Company, any of its subsidiaries, or its management or
employees; (iv) engaging in Detrimental Activity prior to termination of
employment, or (v) other proper cause determined in good faith by the
Committee.  Further, if the Optionee is
subject to a written agreement with the Company or any of its subsidiaries that
contains a definition of “Cause,” any action or activity that constitutes “Cause”
under that agreement shall constitute “Cause” under this Agreement.

(b)   “Detrimental Activity” means activity that
the Committee determines in its sole discretion to be detrimental to the
interests of the Company or any of its subsidiaries, including but not limited
to situations where the Optionee:  (i)
divulges trade secrets of the Company or its subsidiaries, proprietary data or
other confidential information relating to the Company or any subsidiary or to
the business of the Company or any subsidiary, (ii) enters into employment with
a competitor under circumstances suggesting that such Optionee will be using
unique or special knowledge gained as a Company or subsidiary employee to
compete with the Company or any subsidiary, (iii) uses information obtained
during the course of his or her prior employment for his or her own purposes,
such as for the solicitation of business in competition with the Company, (iv)
is determined to have engaged (whether or not prior to termination due to
Retirement) in either gross misconduct or criminal activity harmful to the
Company, or (v) takes any action that harms the business interests, reputation,
or goodwill of the Company and/or its subsidiaries.

(c)   “Disability” means permanently and totally
disabled within the meaning of section 22(e)(3) of the Internal Revenue Code of
1986, as amended.

(d)   “Retirement” means termination of employment
from the Company and its subsidiaries on or after satisfying the early or
normal retirement age and service conditions 

 5
 

specified in the retirement
policy or retirement plan of the Company or one of its subsidiaries applicable
to such Optionee as in effect at the time of such termination.

8.     OPTION
AS COLLATERAL

The Optionee may not
assign or mortgage this option, or pledge this option as any type of security
or collateral.  Any attempted assignment,
mortgage or pledge of this option in violation of this paragraph 8 will be null
and void and have no legal effect.

 6
 

9.     NON-TRANSFERABILITY;
DEATH

(a)  Except as provided in paragraph 9(c), or as
the Committee otherwise provides, the Optionee may not transfer this option
other than by will or the laws of descent and distribution, and only the
Optionee may exercise this option during his or her lifetime.  However, if the Committee determines that the
Optionee is unable to exercise this option as a result of incapacity or
Disability, then the Committee may permit the Optionee’s guardian or an
individual who has obtained an appropriate power of attorney to exercise this
option on behalf of the Optionee.  In
such an event, neither the Committee nor the Company will be liable for any
losses resulting from such exercise or from the disposition of shares acquired
upon such exercise.

(b) If the
Optionee dies while this option is outstanding, then the Optionee’s estate or
the person to whom this option passes by will or the laws of descent and
distribution may exercise this option in the manner described in paragraph 6,
but only within a period of (A) twelve (12) months after the Optionee’s death
or (B) ten (10) years from the date of this Agreement, whichever period is
shorter.

(c) The
Optionee may transfer this option to (A) his or her spouse, children or
grandchildren (“Immediate Family Members”); (B) a trust or trusts for the
exclusive benefit of such Immediate Family Members; or (C) a partnership in
which such Immediate Family Members are the only partners.  The transfer will be effective only if the
Optionee receives no consideration for such transfer.  Subsequent transfers of the transferred
option are prohibited except transfers to those persons or entities to which
the Optionee could have transferred this option or transfers otherwise in
accordance with this paragraph 9.

Following any
transfer (whether voluntarily or pursuant to will or the law of descent and
distribution) under this paragraph 9, this option shall continue to be subject
to the same terms and conditions as were applicable immediately prior to such
transfer, provided that for purposes of this Agreement, the term “Optionee” as
used in paragraphs 8, 10, 11, 12, and 13 shall be deemed to refer to the
transferee. The Company disclaims any obligation to provide notice to any
person who has the right to exercise this option of circumstances triggering
termination of this option.

10.  REGISTRATION

If the Company is advised
by its counsel that shares deliverable upon exercise of this option are
required to be registered under the Securities Act of 1933 (“Act”) or any
applicable state or foreign securities laws, or that delivery of the shares
must be accompanied or preceded by a prospectus meeting the requirements of
that Act or such state or foreign securities laws, then the Company will use
its best efforts to effect the registration or provide the prospectus within a
reasonable time following the Company’s receipt of written notice of option
exercise relating to this option, but delivery of shares by the Company may be
deferred until the registration is effected or the prospectus is
available.  The Optionee shall have no
interest in shares covered by this option until certificates for the shares are
issued.

 7
 

11.  ADJUSTMENTS
AND CHANGE OF CONTROL

The number and type of
shares subject to this option and the option price may be adjusted, or this
option may be assumed, cancelled or otherwise changed, in the event of certain
transactions, as provided in Section 12 of the Plan.  Upon a change of control, as defined in the
Plan, the Optionee shall have the rights specified in Section 12 of the Plan.

12.  AMENDMENT
OR MODIFICATION

Except as provided in
paragraph 11, no term or provision of this Agreement may be amended, modified
or supplemented orally, but only by an instrument in writing signed by the
party against which or whom the enforcement of the amendment, modification or
supplement is sought.

13.  LIMITED
INTEREST

(a)   The Optionee has no rights as a stockholder
as a result of the grant of the option until this option is exercised, the
exercise price and applicable withholding taxes are paid, and the shares
issued.

(b)   The grant of this option does not confer on
the Optionee any right to continue as an employee, nor interfere in any way
with the right of the Company or any of its subsidiaries to terminate the
Optionee at any time.

(c)   The grant of this option shall not affect in
any way the right or power of the Company or any of its subsidiaries to make or
authorize any or all adjustments, recapitalizations, reorganizations, or other
changes in the Company’s or any subsidiary’s capital structure or its business,
or any merger, consolidation or business combination of the Company or any
subsidiary, or any issuance or modification of any term, condition, or covenant
of any bond, debenture, debt, preferred stock or other instrument ahead of or
affecting the Common Stock or the rights of the holders of Common Stock, or the
dissolution or liquidation of the Company or any subsidiary, or any sale or
transfer of all or any part of its assets or business or any other Company or
subsidiary act or proceeding, whether of a similar character or otherwise.

14.  ACTION
OR PROCEEDING; SUBJECT TO PLAN

The Company may require
that any legal action or proceeding with respect to the Plan or this option be
determined in a bench trial.

THE OPTIONEE ACKNOWLEDGES
RECEIPT OF A COPY OF THE PLAN. ALL PARTIES ACKNOWLEDGE THAT THIS OPTION IS
GRANTED UNDER AND PURSUANT TO THE PLAN, WHICH SHALL GOVERN ALL RIGHTS,
INTERESTS, OBLIGATIONS, AND UNDERTAKINGS OF BOTH THE COMPANY AND THE
OPTIONEE.  ALL CAPITALIZED TERMS NOT
OTHERWISE DEFINED IN THIS OPTION SHALL HAVE THE MEANINGS ASSIGNED TO SUCH TERMS
IN THE PLAN.

 8
 

OPTIONEE
HEREBY ACKNOWLEDGES THAT IT IS OPTIONEE’S RESPONSIBILITY TO EXERCISE THE
OPTIONS PRIOR TO THEIR EXPIRATION. 
OPTIONEE FURTHER ACKNOWLEDGES THAT COMPANY IS UNDER NO OBLIGATION,
WHATSOEVER, TO UPDATE, REMIND OR NOTIFY OPTIONEE OF ANY EXPIRATION DATE PRIOR
TO THE EXPIRATION OF THE OPTIONS, REGARDLESS OF WHETHER COMPANY PROVIDES AN
UPDATE TO OPTIONEE OR ANY OTHER PLAN PARTICIPANT.

 9
 

SNAP-ON INCORPORATED

NON-QUALIFIED STOCK OPTION GRANT OFFER LETTER

Dear «FirstName»
«LastName»,

The Company has
been authorized to offer you a non-qualified stock option grant (the “Grant”)
pursuant to the terms of the Snap-on Incorporated 2001 Incentive Stock and
Awards Plan (the “Plan”) and the Snap-on Incorporated Non-Qualified Stock
Option Grant Agreement (the “Agreement”). 
Set forth below are the terms of the Grant which are specific to
you.  The Plan, the Agreement and the
Plan Prospectus are available on the Snap-on intranet site at
http://intranet1.snapon.com/display/router.asp?docid=390.  Snap-on will also provide these documents to
you in print, at no charge, upon written request directed to
compensation@snapon.com.

TERMS
SPECIFIC TO THE OPTIONEE:

	
  Grant Type

  	
  Grant 

  Date

  	
  Quantity 

  Granted

  	
  Grant 

  Price

  	
  Vesting Schedule

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

IMPORTANT
NOTICES:

BY ACCEPTING THIS GRANT,
YOU ACKNOWLEDGE AND AGREE THAT:

·                  A COPY OF EACH OF THE PLAN AND THE
AGREEMENT HAVE BEEN MADE AVAILABLE TO YOU;

·                  IT IS SOLELY YOUR RESPONSIBILITY TO
UNDERSTAND THE TERMS OF THIS GRANT;

·                  THIS OPTION IS GRANTED UNDER AND
PURSUANT TO THE PLAN, AND THAT THE PLAN AND THE AGREEMENT SHALL GOVERN ALL
RIGHTS, INTERESTS, OBLIGATIONS, AND UNDERTAKINGS OF BOTH THE COMPANY AND THE
OPTIONEE;

·                  ALL CAPITALIZED
TERMS NOT OTHERWISE DEFINED IN THIS OFFER LETTER OR THE AGREEMENT SHALL HAVE
THE MEANINGS ASSIGNED TO SUCH TERMS IN THE PLAN OR THE AGREEMENT; AND

·                  IT
IS YOUR RESPONSIBILITY TO EXERCISE THE OPTIONS PRIOR TO THEIR EXPIRATION AND
THAT THE COMPANY IS UNDER NO OBLIGATION, WHATSOEVER, TO UPDATE, REMIND OR
NOTIFY OPTIONEE OF ANY EXPIRATION DATE PRIOR TO THE EXPIRATION OF THE OPTIONS,
REGARDLESS OF WHETHER THE COMPANY 

 10
 

VOLUNTARILY PROVIDES AN
UPDATE TO OPTIONEE OR ANY OTHER PLAN PARTICIPANT.

ADDITIONAL TERM
FOR CANADIAN CITIZENS ONLY:

·                  CANADIAN
RESIDENTS WILL NOT BE ALLOWED TO EXERCISE OPTIONS OR PAY ANY TAXES DUE BY
SWAPPING PREVIOUSLY OWNED SHARES, THROUGH PHYSICAL DELIVERY OR ATTESTATION, TO
PAY SUCH AMOUNTS DUE.

NOTICE TO ALL
PARTICIPANTS:

·                  IN
DECEMBER 2005, THE COMMITTEE TOOK ACTION TO AMEND CERTAIN PORTIONS OF THE PLAN
RELATED TO THE SETTLEMENT OF AWARDS FOLLOWING A CHANGE OF CONTROL.  PLEASE TAKE NOTE OF THE REVISED PROVISIONS OF
THE PLAN.   YOUR ACCEPTANCE OF THIS
OPTION CONSTITUTES YOUR ACKNOWLEDGMENT AND ACCEPTANCE THAT YOU HAVE READ AND
AGREE TO THESE REVISIONS TO THE PLAN.

·                  IN
THE EVENT OF A TERMINATION OF EMPLOYMENT DUE TO RETIREMENT, THE VESTED PORTION
OF YOUR 2007 NON-QUALIFIED OPTIONS WILL REMAIN EXERCISABLE FOR THREE (3) YEARS
FROM YOUR TERMINATION DATE, NOT TO EXCEED THE ORIGINAL TEN (10) YEAR
EXPIRATION.  REFER TO THE AGREEMENT FOR
THE SPECIFIC PERIODS TO EXERCISE THE OPTION FOLLOWING A TERMINATION OF
EMPLOYMENT.

ACTION
REQUIRED:

You are not
required to take any action to accept this Grant offer on the terms described
herein.  You will be deemed to have
accepted this Grant offer unless you send an e-mail to compensation@snapon.com
by _______, 20__ specifically stating that you have rejected the Grant offer.

Any
attempt to modify the terms upon which this Grant is offered will constitute
your irrevocable rejection of this offer.

 

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]