Form of Award Document granted to Executive Officers under the 2019 Management Incentive Compensation Plan

Date:     <Date>

To:    

From:    Jim Loree

Re:    2019 Management Incentive Compensation Plan

It is my pleasure to congratulate you for being selected to participate in the 2019 Management Incentive Compensation Plan (the “MICP”) under the Stanley Black & Decker 2018 Omnibus Award Plan (the “2018 Plan”).

We have modified the structure of the MICP for 2019 to be granted in Performance Shares (“MICP PSUs”), and stock-settled over a three-year period, rather than cash to deliver 2019 operating margin savings and preserve cash. This structure will also provide the potential for stock appreciation between the grant date and vesting dates.

As a participant, you will have the opportunity to earn a target number of MICP PSUs based on your current MICP level provided that the applicable Performance Goals (as included with this Award letter) are achieved during the 2019 fiscal year and the applicable service conditions are satisfied. The initial value of each MICP PSU is [$xxx.xx], representing the average of the high and low price of a share of company common stock on [March 29], 2019 discounted to fair value to reflect that there will be no dividends during vesting.

You may earn additional MICP PSUs if the results achieved in relation to the Performance Goals exceed “target” level, up to the applicable “maximum” level number of MICP PSUs that can be earned, or fewer in the event performance is below the target goals. Each MICP PSU represents one share of Stanley Black & Decker Common Stock and, accordingly, the potential value will change as our stock price changes.

You have been allocated a threshold, target and maximum number of MICP PSUs based upon your target MICP % of your annual base salary at the rate in effect as of January 1, 2019.

The MICP PSUs ultimately deliverable will be determined by the Committee based upon the actual 2019 results achieved in relation to the Performance Goals. Participants will be eligible to vest in equal installments on [March 29^th] of 2020, 2021 and 2022, provided that the participant is continuously employed by the Company on each applicable vesting date, at which time the earned MICP PSUs will be settled in accordance with the terms of this Award Letter and the attached Terms and Conditions (the “Terms and Conditions”).

You are eligible to earn between 0%-200% of your target MICP PSUs based on the level of achievement of the specific Performance Goals applicable to your function or division, and the weighting of those goals, which are provided to you with this Award Letter.

Performance Goals for corporate participants are based on metrics that apply to the Company as a whole; division participants will have performance metrics based on divisional as well as, in most cases, company-wide metrics. These metrics will be weighted as follows:

Although this summary includes the key aspects of the Program, it is not intended to represent a full accounting of the rules and regulations applicable to the Program and is subject to the attached Terms and Conditions, and the 2018 Plan (available upon request), which together with this Award Letter govern the 2019 MICP. While we will evaluate further, we expect to revert to the cash-settled annual MICP for 2020 and future years.

If you have any questions, please contact Elizabeth Ryen at ###-###-#### or Michele Webster at ###-###-####. Once again, thank you for your continued support and congratulations on being selected to participate in this important Program.

Where performance achieved is below “threshold” level for any metric, the number of Performance Shares to be earned with respect to that metric may be prorated on a linear basis to zero, in the sole discretion of the Committee. In addition, the number of Performance Shares which constitute Eligible Shares may be adjusted up or down following the end of the Measurement Period, at the sole discretion of the Committee, based upon individual performance. However, the number of Eligible Shares may not exceed the maximum number of Performance Shares eligible to vest as communicated to the Participant at the time of grant. Once earned, the Eligible Shares (if any) will vest on the applicable Vesting Date subject to the Participant’s satisfaction of the Service-Based Condition.

Any Performance Shares that do not constitute Eligible Shares following the Committee’s determination thereof shall be automatically forfeited.

To the extent applicable, it is intended that the Performance Awards made hereunder comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to Participants. The 2018 Plan and any awards granted thereunder shall be administered in a manner consistent with this intent. Any reference in the 2018 Plan or the Award Documents to Section 409A of the Code will also include any regulations or any other formal guidance promulgated with respect to Section 409A of the Code by the U.S. Department of the Treasury or the Internal Revenue Service.

If at the time of a Participant’s separation from service (within the meaning of Section 409A of the Code), (i) the Participant shall be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected by the Company from time to time) and (ii) the Company shall make a good faith determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Company shall not pay such amount on the otherwise scheduled payment date, but shall instead pay it, without interest, on the first business day of the seventh month after the Participant’s separation from service or, if earlier, on the Participant’s death.

With respect to the Performance Award, a termination of employment will not be deemed to have occurred unless such termination is also a separation from service (within the meaning of Section 409A of the Code), and notwithstanding anything contained herein to the contrary, the date on which such separation from service takes place will be the termination date.

Each payment under this Agreement is intended to be a “separate payment” and not one of a series of payments for purposes of Section 409A.

Without limiting anything set forth herein, the Performance Awards shall be subject to Section 10 of the 2018 Plan in all respects.

and conditions as may be determined by the Committee or the Board from time to time (including under any applicable clawback policy adopted by the Company), including, without limitation, in the event that a Participant, during employment or other service with the Company or an affiliate, engages in activity detrimental to the business of the Company. In addition, notwithstanding anything in the 2018 Plan or the Award Documents to the contrary, the Committee or the Board may also provide for the cancellation or forfeiture of a Performance Award or the forfeiture and repayment to the Company of any gain related to a Performance Award, or other provisions intended to have a similar effect, upon such terms and conditions as may be required by the Committee or the Board under Section 10D of the Exchange Act and any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which common stock of the Company may be traded or under any clawback policy adopted by the Company.

Award Documents. The documents provided to a Participant that advise the Participant that he or she has been selected to Participate in this program, the Performance Goals, amounts payable at the Threshold, Target and Maximum Levels, and the terms and conditions applicable to the Performance Award, which shall consist of an Award Letter, signed by the Chief Executive Officer or the Chief Human Resources Officer, and the documents referenced therein.

Disability. Disability has the meaning provided in Section 22(e)(3) of the Internal Revenue Code of 1986, or any successor provision.

Measurement Period. Fiscal year 2019.

Performance Factors. Threshold, Target and Maximum performance to be achieved over the Measurement Period.

Performance Goals. Goals established by the Committee or, pursuant to an appropriate delegation of authority, the Chief Executive Officer, for performance of the Company as a whole and/or specific businesses or functions during the Measurement Period. The Performance Goals applicable to a Participant for a particular Measurement Period, if not enclosed with the Award Letter, will be promptly communicated to the Participant by a member of the Company’s Human Resources Department.

Restrictive Covenants. The Restrictive Covenants contained in any Restrictive Covenant Agreement executed by a Participant regarding his or her employment with the Company or a subsidiary thereof. To be eligible to receive distributions of Performance Awards following a termination of employment, Participant understands and agrees that (i) Participant may not accept employment (as an employee or contractor) for a competitor of the Company, disparage the Company or any of its employees, solicit customers of the Company, or solicit employees of the Company for employment directly or indirectly, at any time during the Restriction Period and (ii) in the event Participant fails to comply with clause (i), Participant will not be eligible to receive any distribution Participant otherwise would have received under this provision. Because they serve only as a condition to eligibility to receive a Performance Award, these Restrictive Covenants are in addition to, and do not supersede, any Restrictive Covenants set forth in any written employment agreement or other agreement with a Participant. Notwithstanding anything to the contrary set forth herein, the restrictions contained herein (i) are not intended to, and shall be interpreted in a manner that does not limit or restrict you from exercising any legally protected whistleblower rights (including pursuant to Rule 21F under the U.S. Securities Exchange Act of 1934, as amended) and (ii) do not apply to any Participant working from or based in any jurisdiction where such restrictions are prohibited, including, without limitation, the State of California.

Retirement. The Participant’s termination of employment with the Company and each of its Affiliates after attaining the age of 55 and completing 10 years of service.

Service-Based Condition: Participants must satisfy the time-based service requirements set forth in Paragraph 3 of these Terms and Conditions in order for any Eligible Shares to vest and be settled.

Shares. Shares of Unrestricted Stock to be issued if Performance Goals are achieved, as specified in the Award Documents.

Terms and Conditions. The terms and conditions applicable to 2019 Management Incentive Compensation Plan Awards under the Stanley Black & Decker 2018 Omnibus Award Plan.

Unrestricted Stock. Common Stock of the Company that may be sold at any time.