Document:

October 27, 2000

Mr. Robert A. Cornog
Chairman, President and Chief Executive Officer
Snap-on Incorporated
10801 Corporate Drive
P. O. Box 1430
Kenosha, WI  53141-1430

               Re: Retention and Recognition Agreement

Dear Bob:

          You have indicated your desire to retire from your position with
Snap-on Incorporated (the "Company"), but have indicated your willingness to
continue to perform your duties and responsibilities on a full-time basis while
the Company commences a more formalized CEO succession program. At the request
of the Board of Directors of the Company (the "Board"), you have also indicated
your willingness to defer your retirement for a period of time after
relinquishing your officer positions to help ensure a smooth transition of your
duties and responsibilities. At the same time, the Board wishes to recognize
your outstanding leadership of the Company and to ensure your continued
contribution to the Company during the transition period and thereafter.
Accordingly, this retention and recognition agreement (the "Agreement") will
evidence the Company's commitment to provide you with certain payments and
benefits in accordance with the terms and conditions hereof.

          1. Transition and Post-Transition Periods.

                    (a) The Company shall continue to employ you, and you shall
          continue to serve the Company, as Chairman, President and Chief
          Executive Officer, and faithfully perform the duties and
          responsibilities associated with

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Mr. Robert A. Cornog
October 27, 2000
Page 2

          such offices, for a period commencing as of the date hereof (the
          "Effective Date") and ending on the earliest of (i) the date on which
          the Board shall advise you that your successor is ready to take
          office, (ii) March 31, 2002 or (iii) the date, if any, on which the
          Company ceases to have a class of equity securities registered under
          Section 12 of the Securities Exchange Act of 1934, as amended (such
          period, the "Transition Period"). At the end of the Transition Period,
          you shall cease to be Chairman, President and Chief Executive Officer.
          You shall also resign as an officer and director of all of the
          subsidiaries and affiliates of the Company, unless the Board or your
          successor shall request that you retain some or all of these positions
          for all or a portion of the Post-Transition Period, as hereinafter
          defined. Notwithstanding the foregoing, you shall remain an employee
          of the Company until the end of the Post-Transition Period. During the
          Transition Period and the Post-Transition Period, you shall (i)
          continue to receive your annual base salary at the rate currently in
          effect, (ii) be eligible to participate in all employee pension and
          welfare benefit plans and perquisite programs made available to senior
          officers generally and (iii) be subject to the restrictive covenants
          set forth in Section 3 hereof (the "Restrictive Covenants"), which
          shall also apply for a period of two years after the end of the
          Post-Transition Period (and in the case of the Restrictive Covenants
          set forth in Sections 3(c) and 3(d) hereof, indefinitely thereafter).
          During the Transition Period, you shall also continue to participate
          in the Company's incentive compensation plans and programs at a level
          consistent with your position. During the Post-Transition Period, your
          participation in any such incentive plan or program shall be in the
          sole discretion of the Board (or a duly authorized committee thereof).

                    (b) Without limiting your duties and responsibilities as
          Chairman, President and Chief Executive Officer, during the Transition
          Period and thereafter for a period ending on the later of (i) six
          months following the Transition Period or (ii) March 31, 2002 (the
          "Post-Transition Period"), you shall reasonably cooperate with the
          Company with regard to management transition and succession
          (including, but not limited to, reasonably cooperating with the
          Company in the search for your successor as Chief Executive Officer
          and reasonably cooperating with such successor and the Company in the
          transition

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Mr. Robert A. Cornog
October 27, 2000
Page 3

          process). During the Post-Transition Period, you shall be available at
          such times as the Company reasonably may request in order to assist in
          the orientation and performance of your successor, including by
          traveling to major Company facilities. Any services to be performed by
          you during the Post-Transition Period shall be consistent with those
          performed during the Transition Period, shall take into consideration
          your other obligations and shall not involve unreasonable time or
          travel obligations on your part. It is understood, however, that the
          services to be performed during the Post-Transition Period shall not
          require your full-time commitment to the Company and, on average over
          the Post-Transition Period, shall not require you to perform more than
          25 hours of service per week. The Company shall reimburse you, in
          accordance with standard Company policy, for all expenses incurred by
          you in connection with performing such services, upon submission of
          appropriate documentation by you.

          2. Transition Payment.

                    (a) So long as you are in material compliance with your
          obligations hereunder, then upon the end of the Transition Period, in
          consideration of the commitments made by you hereunder for the benefit
          of the Company, and in particular the covenants provided by you and
          set forth in Section 3 hereof, you shall become fully vested in the
          right to receive a lump sum payment equal to $4.8 million (such
          payment, the "Transition Payment"), the payment of which shall be
          deferred in accordance with your election and otherwise subject to the
          terms and conditions of the Company's Deferred Compensation Plan. In
          the event your employment is terminated by reason of your death or
          "Disability" (as defined below) prior to the end of the Transition
          Period (a "Qualifying Termination"), then you (or your beneficiary or
          estate) shall receive the Transition Payment within five business days
          following such termination (or, if you had elected a deferred schedule
          of payments, in accordance with such schedule). The Transition Payment
          shall not be included as compensation for purposes of calculating your
          retirement benefits from the Company.
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Mr. Robert A. Cornog
October 27, 2000
Page 4

                    (b) You shall not be treated as not in material compliance
          with your obligations hereunder prior to your receipt of (i) a copy of
          a resolution delivered prior to the end of the Post-Transition Period
          and duly adopted by the affirmative vote of not less than
          three-quarters (3/4) of the entire membership of the Board at a
          meeting of the Board called and held for the purpose of considering
          such matter (after reasonable notice to you and an opportunity for
          you, together with your counsel, to be heard before the Board) finding
          that you were materially not in compliance and specifying the
          particulars thereof in detail and (ii) a copy of a resolution
          delivered prior to the end of the Post-Transition Period and duly
          adopted by the affirmative vote of a majority of the Ad Hoc Committee
          (as hereinafter defined) at a meeting of the Ad Hoc Committee called
          and held for the purpose of considering such matter (after reasonable
          notice to you and an opportunity for you, together with your counsel,
          to be heard before the Ad Hoc Committee) finding that you were
          materially not in compliance and specifying the particulars thereof in
          detail. The Ad Hoc Committee shall be a three-person committee, two
          members of which consist of individuals who, immediately prior to the
          end of the Transition Period, were serving on the Company's
          Organization and Executive Compensation Committee and one member of
          which is a member of the Board.

                    (c) For purposes of this letter, "Disability" shall be
          deemed the reason for the termination by the Company of your
          employment, if, as a result of your incapacity due to physical or
          mental illness, you shall have been absent from the performance of
          your duties with the Company for a period of six (6) consecutive
          months, the Company shall have given you a notice of termination for
          Disability, and, within thirty (30) days after such notice of
          termination is given, you shall not have returned to the performance
          of your duties.

          3. Restrictive Covenants. "Restrictive Covenants" shall mean the
          following:

                    (a) Non-Competition. You shall not, directly or indirectly,
          engage, whether as an employee, employer, consultant, advisor or
          director, or as an owner, investor, partner or stockholder (unless
          your interest is insubstantial),
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Mr. Robert A. Cornog
October 27, 2000
Page 5

          in any business in an area or region in which the Company or any
          subsidiary or affiliate then conducts business, which business is
          directly in competition with a business then conducted by the Company
          or a subsidiary or affiliate. For purposes of this Section 3(a), your
          interest as a stockholder shall be considered insubstantial if such
          interest represents beneficial ownership of less than five percent of
          the outstanding class of stock, and your interest as an owner,
          investor or partner shall be considered insubstantial if such interest
          represents ownership of less than five percent of the outstanding
          equity of the entity.

                    (b) Non-Solicitation. You shall not, directly or indirectly,
          whether as employee, employer, consultant, advisor or director, or as
          an owner, investor, partner, stockholder or otherwise, (i) solicit or
          induce any client or customer of the Company or a subsidiary or
          affiliate, or entity with which the Company or a subsidiary or
          affiliate has a business relationship, to curtail, cancel, not renew
          or not continue his or her or its business with the Company or any
          subsidiary or affiliate, (ii) hire any person who is then, or who
          within 90 days prior to the commencement of the Transition Period was,
          an employee of, or a consultant or independent contractor to, the
          Company or a subsidiary or affiliate or (iii) solicit or induce any
          person who is an employee of, or a consultant or independent
          contractor to, the Company or a subsidiary or affiliate to curtail,
          cancel, not renew or not continue his or her or its employment,
          consulting or other relationship with the Company or any subsidiary or
          affiliate.

                    (c) Confidentiality. Except pursuant to the performance of
          your duties to the Company prior to the completion of the
          Post-Transition Period or with the consent of the Company, you shall
          not take, disclose, use, sell or otherwise transfer any confidential
          or proprietary information of the Company or any subsidiary or
          affiliate, including but not limited to information regarding the
          negotiation of this Agreement, current and potential customers,
          clients, counterparts, organization, employees, finances and financial
          results, and methods of operation, transactions and investments, so
          long as such information has not otherwise been disclosed to the
          public or is not otherwise in the public domain, except as required by
          law or pursuant to legal process; and you shall return to the Company,
          promptly following the completion of the Post-Transition

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Mr. Robert A. Cornog
October 27, 2000
Page 6

          Period (or upon any earlier termination of employment), any
          information, documents, materials, data, manuals, computer programs or
          device containing information relating to the Company or any
          subsidiary or affiliate, and each of their customers, clients and
          counterparts, which came into your possession or control during your
          employment.

                    (d) Cooperation with the Company. You shall cooperate fully
          with the Company in the defense or prosecution of any claims or
          actions now in existence or which may be brought in the future against
          or on behalf of the Company or its subsidiaries or affiliates which
          relate to events or occurrences that transpired while you were
          employed by the Company. Your full cooperation in connection with such
          claims or actions shall include, but not be limited to, being
          available to meet with counsel to prepare for discovery or trial and
          to act as a witness on behalf of the Company and its subsidiaries and
          affiliates at mutually convenient times. The Company shall reimburse
          you for any reasonable out-of-pocket expenses incurred in connection
          with your performance of obligations pursuant to this Section 3(d). To
          the maximum extent permitted by law, you agree that you will notify me
          or, following the completion of the Transition Period, the General
          Counsel of the Company if you are contacted by any government agency
          relating to a matter involving the Company, by any other person
          contemplating or maintaining any claim or legal action against the
          Company or its subsidiaries and affiliates, or by any agent or
          attorney of such person.

                    (e) Prior Approval. If you intend to enter into employment
          or otherwise provide services to any entity or undertake any other
          activities that you believe may be in conflict with your duties and
          obligations under either Section 3(a) or 3(b), you may request that
          the Company consider whether such services or activities would violate
          such provisions. Any such request must be in writing, must identify
          the entity or entities for which services would be performed (or any
          entities that may be implicated in any such other activities) and when
          you would propose to commence such services (or undertake such
          activities), and include a brief description of the principal business
          conducted by such entity and the reason that you believe such services
          or activities might be in conflict with the

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Mr. Robert A. Cornog
October 27, 2000
Page 7

          requirements of Section 3(a) or 3(b). The Company shall make a
          reasonable, good faith effort to review and assess such request and
          respond to you within a reasonable period of time after receipt
          thereof, and promptly upon reaching any conclusion with respect
          thereto, shall advise you in writing whether it will consider any such
          services to violate any such provision. Notwithstanding the foregoing,
          (i) this Section 3(e) shall not be construed to obligate the Company
          to respond to any such request within any specific time period and
          (ii) the absence of any response from the Company with respect to such
          a request shall not be construed as affirming or denying the
          application of the covenants contained in Section 3(a) or 3(b) to such
          services or activities.

               4. Benefit Continuation; Service Credit.

                    (a) Continuation of Benefits. Notwithstanding any other
          provision of this Agreement, nothing in this Section 4(a) shall
          adversely affect in any manner your benefits, period of coverage or
          other rights as they currently exist under any benefit plan, agreement
          or arrangement of the Company. So long as you are in material
          compliance with your obligations hereunder, then until the third
          anniversary of the earlier of (a) completion of the Post-Transition
          Period or (b) the termination of your employment (or, if later, in
          accordance with the existing plans, agreements and arrangements in
          effect between you and the Company), the Company shall provide you
          with continued health, disability, life and other insurance benefits
          substantially similar to the benefits provided to you immediately
          prior to the Effective Date or such termination, whichever is greater;
          provided that the level of any continued benefit shall be reduced to
          the extent that any such benefits are being provided to you by a
          subsequent employer. In addition, so long as you are in material
          compliance with your obligations hereunder, should your employment
          terminate prior to March 31, 2002, for purposes of the Company's
          benefits plans, agreements and arrangements you shall be deemed to
          have remained employed with the Company through March 31, 2002 at the
          rate of compensation in effect with respect to you on the date of such
          termination and to have attained the age that you would be on March
          31, 2002. To the extent that benefits attributable to any such deemed
          service cannot be provided to you pursuant to the terms of the

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Mr. Robert A. Cornog
October 27, 2000
Page 8

          Company's tax-qualified benefit plans due to the requirements of the
          Internal Revenue Code of 1986, as amended, such benefits shall be
          provided to you pursuant to a non-tax-qualified arrangement.

                    (b) Extended Medical Benefits. Without limiting the
          generality of the foregoing, following the period of benefits
          continuation described in Section 4(a) hereof and continuing until you
          attain age 65 (and, in the case of your current spouse and your
          current dependent children, until your current spouse attains age 65),
          the Company will allow you and such spouse and dependent children, if
          any, to continue your coverage under its medical, health and dental
          benefits programs then made available to senior officers on the same
          terms and conditions as such continued coverage would be available to
          you under the provision of Section 601 et. seq. of the Employee
          Retirement Income Security Act of 1974, as amended (but determined
          without regard to any maximum period of continued coverage, and
          assuming for this purpose that neither your nor such spouse is or
          becomes eligible to participate in any other group plan until such
          person attains age 65). In the event of your death during the
          Transition Period, the Post-Transition Period or the period during
          which continued benefits are being provided to you under Section 4(a)
          hereof or this Section 4(b), the Company shall continue to make
          available to such spouse and dependent children, if any, until such
          time as such spouse attains age 65 or dies, whichever is earlier, the
          same medical, health and dental benefits that would have been
          available to them as your dependents under the terms of the applicable
          plans and this Agreement had you survived.

          5. Stock Options. So long as you are in material compliance with your
obligations hereunder, at the completion of the Post-Transition Period or,
should your employment terminate earlier, at such time, each outstanding stock
option held by you, whether or not vested and exercisable, shall become fully
vested and exercisable and, in the case of a non-qualified stock option, shall
remain outstanding and exercisable for a period of three years or, if later, the
period prescribed by the applicable option agreement (but in no event later than
the expiration date of such option).

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Mr. Robert A. Cornog
October 27, 2000
Page 9

          6. Governing Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
Wisconsin without giving effect to the principles of conflict of laws of such
State.

          7. Entire Agreement; Other Agreements. This Agreement constitutes the
entire understanding and agreement of the parties with respect to the matters
discussed herein and supersedes all other prior agreements and understandings,
written or oral, between the parties with respect to such matters. Except as
provided below, however, nothing in this Agreement shall affect your rights
under applicable law or under any plan, agreement or arrangement in effect
between you and the Company. Notwithstanding the foregoing, upon execution of
this Agreement, the Restated Senior Officer Agreement between you and the
Company, dated as of January 29, 1996, as such agreement may be amended from
time to time, shall immediately terminate and shall be null and void and of no
force and effect; provided, however, that Section 3 thereof shall survive such
termination and shall remain in full force and effect.

          8. Withholding. The Company may withhold from any amounts payable
under this Agreement all federal, state and other taxes as shall be legally
required.

          9. Legal Fees. The Company shall pay to you all reasonable legal fees
and expenses incurred by you with respect to the negotiation of this Agreement
or in seeking in good faith to obtain or enforce any benefit or right provided
by this Agreement. Such payment shall be made within five (5) business days
after delivery of your written request for payment accompanied with such
evidence of fees and expenses incurred as the Company reasonably may require.

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Mr. Robert A. Cornog
October 27, 2000
Page 10

                                      * * *

          Please sign below in the space provided to acknowledge your acceptance
of the terms of this Agreement.

                                               Sincerely,

                                        SNAP-ON INCORPORATED

                                        /s/ Bruce S. Chelberg
                                        ----------------------------
                                        By: Bruce S. Chelberg
                                               Chairman
                                               Organization and Executive
                                               Compensation Committee

Acknowledged and Agreed to:

/s/ Robert A. Cornog
----------------------------------------
Robert A. Cornog
Chairman, President and Chief Executive Officer

Date:  10/27/00
      ----------------------October 26, 2000

NAME
TITLE
Snap-on Incorporated
10801 Corporate Drive
Pleasant Prairie, Wisconsin 53158

                 Re:  Severance Payments

Dear NAME:

          This letter agreement (the "Agreement") will evidence the
understanding that we have reached with respect to the severance payments and
benefits that will be provided to you upon a qualifying termination of your
employment with Snap-on Incorporated (the "Company").

          1. Severance Benefits.

                    (a) Upon the occurrence of a "Qualifying Termination," you
          shall be entitled to receive the payments and benefits described in
          clauses (b) and (c) of this Section 1. A "Qualifying Termination"
          shall mean the termination of your employment with the Company and its
          subsidiaries (i) by the Company and its subsidiaries without Cause (as
          defined below) or (ii) by you for any reason during the six-month
          period beginning on the date which is six months following the date on
          which I cease for any reason to be Chief Executive Officer of the
          Company. For purposes of this letter, the term "Cause" shall mean that
          prior to your termination of employment, you shall have (i) engaged in
          any act of fraud, embezzlement, or theft in connection with your
          duties as an executive or in the course of employment with the Company
          or its subsidiaries; (ii) wrongfully disclosed any secret process or
          confidential information of the Company or its subsidiaries; or (iii)
          participated without the written consent of the Board of Directors of
          the Company (the "Board") in the management of any business enterprise
          which manufacturers or sells any product or service competitive with
          any product or service of the Company or its subsidiaries (other than
          the mere ownership of less than five (5) percent of the securities in
          any enterprise and exercise of any ownership rights related thereto);
          and in any such case the act shall have been determined by the Board
          to have been materially harmful to the Company.

<PAGE>

NAME
October 26, 2000
Page 2

          You may not be terminated for Cause prior to your receipt of a copy of
          a resolution duly adopted by the affirmative vote of not less than
          three-quarters (3/4) of the entire membership of the Board at a
          meeting of the Board called and held for the purpose of considering
          such termination (after reasonable notice to you and an opportunity
          for you, together with your counsel, to be heard before the Board)
          finding that you were guilty of conduct set forth in the definition of
          Cause herein, and specifying the particulars thereof in detail. In the
          event of a dispute regarding whether your employment has been
          terminated for Cause, no claim by the Company that Cause exists shall
          be given effect unless the Company establishes by clear and convincing
          evidence that Cause exists.

                    (b) You (or your estate, as the case may be) shall be
          entitled to receive, in a lump sum within five business days following
          the Qualifying Termination or, in the discretion of the Company, in
          substantially equal monthly installments over a period of three years
          following the Qualifying Termination (such period, the "Severance
          Period"), a severance payment or payments which, in the aggregate,
          equal three times the sum of (i) your highest annual rate of base
          salary in effect during the three-year period immediately prior to the
          Qualifying Termination plus (ii) the higher of (A) your highest annual
          bonus earned during the three complete fiscal years of the Company
          immediately preceding the Qualifying Termination or (B) 90% of your
          annual rate of base salary as in effect immediately prior to the
          Qualifying Termination. During the 30-day period beginning on the date
          on which you sign this Agreement, you may elect to defer the payment
          of all or a portion of the severance payment, to the extent that such
          payment would otherwise be made in a lump sum, to a date or dates
          consistent with the deferral options available under the Company's
          Deferred Compensation Plan. Any such deferral election shall be null
          and void and of no force and effect if the Company determines that the
          severance payments shall be made over the Severance Period. If the
          Company determines that the severance payments shall be made on a
          monthly basis, you shall be subject to the restrictive covenants set
          forth in Section 3 hereof (the "Restrictive Covenants") during the
          Severance Period. If you violate the Restrictive Covenants during such
          period, all severance payments (as set forth in this Section 1(b))
          which have not yet been paid shall be immediately forfeited and any
          further continuation of benefits (as set forth in Section 1(c) hereof)
          shall immediately cease. The severance payments hereunder shall not be
          included as compensation for

<PAGE>

NAME
October 26, 2000
Page 3

          purposes of calculating your retirement benefits from the Company, and
          the Severance Period shall not count as service for purposes of any
          benefit plan or arrangement maintained by the Company.

                    (c) Subject to Section 7 hereof, for a three-year period
          following the Qualifying Termination (or, if later, in accordance with
          the existing plans, agreements and arrangements in effect between you
          and the Company), the Company shall provide you with continued health,
          disability, life and other insurance benefits substantially similar to
          the benefits provided to you immediately prior to the Qualifying
          Termination; provided, that the level of any continued benefit shall
          be reduced to the extent that any such benefits are being provided to
          you by a subsequent employer. Your rights to continued coverage under
          COBRA shall commence at the end of such three-year period.

          2. Option Vesting. In the case of a Qualifying Termination described
in Section 1(a)(i) hereof, the Company shall determine whether any or all of
your then unvested stock options shall become vested and exercisable. In the
case of a Qualifying Termination described in Section 1(a)(ii) hereof, none of
your then unvested stock options shall become vested and exercisable.

          3. Restrictive Covenants. "Restrictive Covenants" shall mean the
following:

          (a) Non-Competition. You shall not, directly or indirectly, engage,
whether as an employee, employer, consultant, advisor or director, or as an
owner, investor, partner or stockholder (unless your interest is insubstantial),
in any business in an area or region in which the Company or any subsidiary or
affiliate then conducts business, which business is directly in competition with
a business then conducted by the Company or a subsidiary or affiliate. For
purposes of this Section 3(a), your interest as a stockholder shall be
considered insubstantial if such interest represents beneficial ownership of
less than five percent of the outstanding class of stock, and your interest as
an owner, investor or partner shall be considered insubstantial if such interest
represents ownership of less than five percent of the outstanding equity of the
entity.

          (b) Non-Solicitation. You shall not, directly or indirectly, whether
as employee, employer, consultant, advisor or director, or as an owner,
investor, partner, stockholder or otherwise, (i) solicit or induce any client or
customer
<PAGE>

NAME
October 26, 2000
Page 4

of the Company or a subsidiary or affiliate, or entity with which the Company or
a subsidiary or affiliate has a business relationship, to curtail, cancel, not
renew or not continue his or her or its business with the Company or any
subsidiary or affiliate, (ii) hire any person who is then, or who within 90 days
prior to the Qualifying Termination was, an employee of, or a consultant or
independent contractor to, the Company or a subsidiary or affiliate or (iii)
solicit or induce any person who is an employee of, or a consultant or
independent contractor to, the Company or a subsidiary or affiliate to curtail,
cancel, not renew or not continue his or her or its employment, consulting or
other relationship with the Company or any subsidiary or affiliate.

          (c) Confidentiality. Except pursuant to the performance of your duties
to the Company during your employment with the Company or with the consent of
the Company, you shall not take, disclose, use, sell or otherwise transfer any
confidential or proprietary information of the Company or any subsidiary or
affiliate, including but not limited to information regarding current and
potential customers, clients, counterparts, organization, employees, finances
and financial results, and methods of operation, transactions and investments,
so long as such information has not otherwise been disclosed to the public or is
not otherwise in the public domain, except as required by law or pursuant to
legal process; and you shall return to the Company, promptly following the
Qualifying Termination, any information, documents, materials, data, manuals,
computer programs or device containing information relating to the Company or
any subsidiary or affiliate, and each of their customers, clients and
counterparts, which came into your possession or control during your employment.

          (d) Cooperation with the Company. You shall cooperate fully with the
Company in the defense or prosecution of any claims or actions now in existence
or which may be brought in the future against or on behalf of the Company or its
subsidiaries or affiliates which relate to events or occurrences that transpired
while you were employed by the Company. Your full cooperation in connection with
such claims or actions shall include, but not be limited to, being available to
meet with counsel to prepare for discovery or trial and to act as a witness on
behalf of the Company and its subsidiaries and affiliates at mutually convenient
times. The Company shall reimburse you for any reasonable out-of-pocket expenses
incurred in
<PAGE>

NAME
October 26, 2000
Page 5

connection with your performance of obligations pursuant to this Section 3(d).
To the maximum extent permitted by law, you agree that you will notify the Chief
Executive Officer of the Company if you are contacted by any government
agency relating to a matter involving the Company, by any other person
contemplating or maintaining any claim or legal action against the Company or
its subsidiaries and affiliates, or by any agent or attorney of such person.

          4. Governing Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
Wisconsin without giving effect to the principles of conflict of laws of such
state, except that Section 5 shall be construed in accordance with the Federal
Arbitration Act. Judgment may be entered on the arbitrator's award in any court
having jurisdiction.

          5. Settlement of Disputes; Arbitration. Any dispute or controversy
arising under or in connection with this Agreement shall be settled by
arbitration in Chicago, Illinois in accordance with the rules of the American
Arbitration Association then in effect.

          6. Withholding. The Company may withhold from any amounts payable
under this Agreement all federal, state and other taxes as shall be legally
required.

          7. Entire Agreement; Other Agreements. This Agreement constitutes the
entire understanding and agreement of the parties with respect to the matters
discussed herein and supersedes all other prior agreements and understandings,
written or oral, between the parties with respect to such matters. Except as
provided below, however, nothing in this Agreement shall affect your rights
under applicable law, the Restated Senior Officer Agreement between you and the
Company, dated as of ______________, 1996, as such agreement may be amended from
time to time (the "Senior Officer Agreement") or under any other plan, agreement
or arrangement in effect between you and the Company. Notwithstanding the
foregoing, (a) any severance compensation to which you become entitled pursuant
to Section 2(c) of the Senior Officer Agreement (the "Senior Officer
Compensation") shall be reduced (but not below zero) by any severance payments
previously paid to you pursuant to Section 1(b) of this Agreement, and any
severance payments to
<PAGE>

NAME
October 26, 2000
Page 6

which you become entitled pursuant to Section 1(b) of this Agreement shall be
reduced (but not below zero) by any Senior Officer Compensation previously paid
to you and (b) from and after the time that benefit continuation commences
pursuant to Section 1(c) of this Agreement, such continuation shall supersede
any benefit continuation to which you are entitled pursuant to Section 2(d) of
the Senior Officer Agreement; provided, however, that the period of the benefit
continuation under said Section 1(c) shall be reduced by the period during which
any benefit continuation had previously been provided to you under said Section
2(d). Insofar as it relates to the matters described in the immediately
preceding sentence, this Agreement shall be deemed to constitute an amendment to
the Senior Officer Agreement.

                                      * * *

Please sign below in the space provided to acknowledge your acceptance of the
terms of this Agreement.

                                              Sincerely,

                                       Snap-on Incorporated

                                       ----------------------------
                                       By:  Robert A. Cornog
                                               Chairman, President and
                                               Chief Executive Officer

Acknowledged and Agreed to:

----------------------------------------
NAME
TITLE

Date:  __________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]