EXHIBIT
10(xiii)(e)
DESCRIPTION OF
PERFORMANCE CRITERIA AND RANGE OF CERTAIN AWARDS
UNDER THE LONG-TERM PERFORMANCE AWARD PROGRAM FOR THE PERIOD
JANUARY 2, 2005 THROUGH DECEMBER 29, 2007
The Long-Term
Performance Award Program under the Stanley Works 1997 Long-Term
Incentive Plan for the performance period commencing January 2,
2005 and ending December 29, 2007 provides for the grant of
performance units to the members of our senior executive team that
are settled in shares of Stanley Common Stock if and to the extent
corporate financial goals are achieved over the performance period.
The performance criteria approved by the Compensation and
Organization Committee under the 2005 to 2007 Long-Term Performance
Award Program are based on achievement of corporate earnings per
share and return on capital employed targets over the three year
performance period from January 2, 2005 to December29,
2007.
The range of performance
units to be granted under the 2005 to 2007 Long-Term Performance
Award Program to our Chief Executive Officer and other four most
highly compensated executive officers for achievement of threshold
performance is from 1,848 to 8,155 performance units, for
achievement of target performance is from 3,697 to 16,311
performance units, and for achievement of maximum performance is
from 7,394 to 32,622 performance units.
Terms and Conditions
Applicable to
Long Term Performance Awards
Issued Pursuant to The Stanley Works 1997 and 2001 Long Term
Incentive Plans
This document sets forth
the Terms and Conditions applicable to long term performance awards
(‘‘ Performance Awards’’) issued to
eligible Employees pursuant to either The Stanley Works 1997
Long-Term Incentive Plan or The Stanley Works 2001 Long-Term
Incentive Plans (the ‘‘ Plan’’) as
described in the Award Document.
Each Performance Award
represents the right of the Participant to receive a number of
Shares to be issued if the Company achieves Performance Goals for
the Measurement Period as set forth in the Award
Document.
