EXHIBIT
10(xi)(h)
Date
Dear
Thiery:
It is my
pleasure to congratulate you for being selected to participate in
the Long Term Performance Award Program (the “Program”)
under The 1997 Stanley Works Long-Term Incentive Plan. This Program
is intended to provide substantial, equity-based rewards for
specified full-time members of our senior executive team, provided
specific Corporate goals are achieved during the Program’s
three year measurement period (January 1, 2006 through January 3,
2009).
In conjunction
with our short-term variable compensation program (MICP) and our
stock option program, the Program is an important addition to your
total compensation package, and provides a strong additional
incentive to continue increasing shareholder value.
Bonus Opportunity
Each
participant will have an opportunity to earn a number of
Performance Shares (PS) based upon achievement of corporate
financial goals, and may earn additional performance shares if the
corporate financial goals are exceeded. Each PS unit represents one
share of Stanley Common Stock and, accordingly, the potential value
of a participant’s performance award under the Program may
change as our stock price changes.
Each
participant is allocated a threshold, target and maximum number of
PS units based upon assigned percentages of his or her annual base
salary, at the rate in effect as of January 1, 2006.
Your
performance award covers the following number of PS
units:
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Threshold
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Target
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Max
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PS
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