Document:

Exhibit

10.3

 

September 26, 2002

 

John Costello

860 Gloucester Crossing

Lake Forest, IL 60045

 

 

Dear John,

 

This will confirm The Home Depot, Inc.’s offer and your acceptance of

employment effective November 4, 2002 in the position of Executive Vice President

and Chief Marketing Officer, reporting directly to me.  You have agreed to tender your resignation

to your current employer by October 15, 2002 and continue your employment with

your current employer until November 1, 2002. 

Your initial base annual salary will be $550,000, payable in equal

bi-weekly installments.  Your first

salary review will be held in April of 2003, with salary reviews held annually

thereafter.

 

In addition to your base salary, you will participate in the Senior

Officer Management Incentive Program, which provides an annual incentive target

of up to 100% of your base salary, based upon achieving established goals.  We will guarantee a payment of $450,000 for

fiscal year 2002, payable in 2003 (offset by any Yahoo! award received for fiscal

year 2002). To be eligible for payment of any incentive, you must be employed

on the day on which the incentive is paid.

 

In addition to the compensation outlined above, we will give you a

$200,000 signing bonus.  This will be

payable to you within 30 days of your first day of employment.  In the event you have an obligation to your

current employer to repay signing bonuses and/or relocation expenses, you will

be reimbursed for up to $400,000 within 30 days following written verification

of such repayments.  In the event that

you voluntarily terminate your service with The Home Depot, Inc. within your

first three years of employment, you will, at the Company’s discretion, be

required to repay the signing bonus and reimbursements outlined in this paragraph.

 

Commencing in fiscal year 2003 you will be eligible to participate in

the Long-Term Incentive Plan (LTIP), which provides an incentive target of 75%

of your base salary.  This plan’s payout

is based on a three-year performance period and a new three-year performance

period begins every year.  Upon hire you

will receive the plan documents explaining this plan.

 

At the next meeting of The Home Depot, Inc. Compensation Committee

following the commencement of your employment, you will receive a grant of 250,000

non-qualified stock options exercisable in accordance with the 1997 Omnibus

Stock Option Plan, a copy of which is enclosed for your information.  Twenty-five percent of the stock options

will become exercisable on the second, third, fourth, and fifth anniversaries

of the grant date.  Expiration of all

stock options will be the earlier of ten years from the grant date or

termination of employment.  While there

can be no guarantee of future stock option grants, the issuance of stock

options is a continuing pattern in our company. You will be reviewed in April

of 2003 for additional stock option grants beyond what is being offered in this

letter.

 

 

Also, at the next meeting of The Home Depot, Inc. Compensation

Committee following the commencement of your employment, you will receive a

grant of 70,000 shares of restricted stock in accordance with the 1997 Omnibus

Stock Option Plan.  The restrictions on

twenty-five percent of the shares will lapse on the third anniversary of the

grant date, twenty-five percent will lapse on the sixth anniversary of the

grant date, and the remaining fifty percent will lapse at age 62.

 

In addition to the above stock option grant, you will be eligible to

participate in The Home Depot Employee Stock Purchase Plan.  The plan affords you the opportunity to

purchase Home Depot stock at a 15% discount through payroll deductions.  See the enclosed brochure for a detailed

explanation of the plan.

 

You will also be eligible to participate in The Home Depot Nonqualified

Deferred Compensation Program.  This

plan affords you the opportunity to defer up to fifty percent of your base

salary and one hundred percent of your annual management incentive payment into

the plan.  Upon hire you will receive

the plan document explaining this plan.

 

The Home Depot offers an extensive benefits program for our associates

and their dependents.  The insurance

coverages begin on your employment date with the Company.  After one year of service, you are also

eligible to participate in The Home Depot FutureBuilder, a 401(k) and Stock

Ownership Plan.  For full details on our

various benefits, please review the enclosed benefits summary.

 

In addition to the standard benefits package for salaried associates,

as an officer of the Company, you will receive an additional $250,000 Death

Benefit Only insurance policy.  You are

also able to participate in the Supplemental Executive Choice Program.  Under this program you will receive an annual

supplemental benefit allowance of $25,000. 

This amount will be grossed up for income tax purposes.  You can use this annual allowance to

purchase additional disability or life insurance benefits, personal excess

liability insurance, or you can use it to reimburse yourself for financial services

or health care expenses not covered under our standard health plans.  Additionally, you will be eligible to

participate in the leased car program. 

Upon hire you will receive your personalized Supplemental Executive

Choice Program package for enrollment in this plan.

 

Our standard vacation policy will be waived and you will be entitled to

four weeks of vacation during each anniversary year of employment with Home

Depot.  Should you leave the employment

of the Company at any time you will be paid for unused vacation strictly in

accordance with Home Depot’s standard vacation policy.

 

The Home Depot offers a comprehensive

relocation package.  Relocation benefits

include:  (a) one home-finding trip (not

to exceed five days) for two (yourself and your spouse/domestic partner) to the

new location;  (b) packing and hauling

of typical household belongings and the shipment of one automobile (if two are

owned) for moves between 500-1,500 miles and both automobiles if the move is

over 1,500 miles; (c) reimbursement for eligible travel expenses to your new

location;  (d) a relocation allowance of  $

25,000 to assist with miscellaneous expenses (appropriate taxes will be

withheld); and (e) to assist with the sale of your current home, following

ninety days of marketing assistance through The Home Depot Relocation

Department, the Company will extend an Appraised Value Offer (guaranteed

buy-out) utilizing a third party home purchase provider (see enclosed

Relocation brochure for details).   You

will also be reimbursed for the loss-on-sale of your principal residence based

on the difference in the contract purchase price and the contract sale

price.  Appropriate taxes will be

withheld from the loss-on-sale.  If you

sell your current home, you are entitled to the reimbursement of 2% of closing

costs on the purchase of a new home excluding loan origination and discount

point(s) and a home inspection up to $400.

 

2

 

The Relocation Department has a network of quality brokers in place

across the United States to assist you at your destination whether you plan to

rent or purchase.  It is our

understanding that your Illinois home is currently listed.  The Relocation department will work with

your current agent in order to facilitate the sale of your residence.  You may call Mike Lequier of Relocation at

(770) 384-3506.

 

You agree that you shall not, without the prior express written consent

of an officer of the Company, engage in or have any financial or other

interests in, or render any service in any capacity to any competitor or

supplier of the Company during the course of your employment with the

Company.  Notwithstanding the foregoing,

you shall not be restricted from owning securities of corporations listed on a

national securities exchange or regularly traded by national securities

dealers, provided that such investment does not exceed 1% of the market value

of the outstanding securities of such corporation.  The provisions of this paragraph shall apply to you and your

immediate family.

 

You have stated that you have not agreed to and are not subject to any

covenant not to compete with any prior employer.  You understand that it is not the intention of Home Depot to

receive or obtain any trade secrets of others. Accordingly you agree that you

will not disclose or use during the period of your employment with Home Depot

any proprietary information or confidential information which you may have

acquired because of employment with an employer other than Home Depot.  Further, you agree that you will not bring

Home Depot any documents in any form containing proprietary or confidential

information from a prior employer.   In

the event your employment with Home Depot is terminated for any reason, you

agree not to disclose any Home Depot proprietary or confidential information to

any future employer or third party or to take copies in any form of any

documents containing such information.

 

By accepting this offer you acknowledge that you will be exposed to

Company materials which are proprietary and confidential in nature and/or which

constitute trade secrets, and, further, that you will receive training in the

Company’s various merchandising, operations, financial, and/or other business

processes.  You further acknowledge that

such proprietary and confidential information, including trade secrets and

human resources and other business processes, are utilized by the Company

throughout the entire United States and in other locations in which it conducts

business.  Consequently, you agree that

you will not, for a period of thirty-six months subsequent to your termination

from Home Depot, regardless of the reason for the termination, enter into or

maintain an employment or contractual relationship, either directly or

indirectly, with any company or entity in the home improvement industry engaged

in any way in a business that competes with Home Depot, its parents,

subsidiaries, affiliates or related entities (collectively referred to as the

“Company”), in the United States, Canada, Puerto Rico, Mexico, or any other

location in which the Company conducts business or may conduct business prior

to the end of the above referenced thirty-six month period, without the prior

written consent of the Company. 

Businesses that compete with the Company in the home improvement

industry specifically include, but are not limited to, the following entities

and each of their subsidiaries affiliates, assigns, or successors in interest:

Lowe’s Companies, Inc. (including, but not limited to, Eagle Hardware and

Garden); Sears (including, but not limited to, Orchard Supply and Hardware

Company); Menard Inc.; and Wal-Mart.

 

In the event you wish to enter into any relationship or employment

prior to the end of the above referenced thirty-six  month period which may be covered by the above non-compete

provision, you agree to request written permission from the Executive Vice

President, Human Resources of the Company prior to entering any such

relationship or employment.  The Company

may approve or not approve of the relationship or employment in its absolute

discretion.

 

You agree that prior to the end of the thirty-six month period stated

above that you will not directly or indirectly solicit any person who is an

employee of the Company to terminate his or her relationship with the Company

without prior written approval from the Executive Vice President, Human

Resources of the Company.

 

3

 

If you accept Home Depot’s offer of employment, and Home Depot notifies

you of its intention to terminate your employment involuntarily and without

cause subsequent to your written acceptance of this employment agreement, you

will be eligible to receive, in exchange for your execution of a general

release in a form acceptable to Home Depot’s legal counsel, twenty-four (24)

months base salary continuation and medical coverage during the period of

salary continuation.  In this

circumstance, all unvested stock options from the initial grant of 250,000

non-qualified stock options will vest immediately and all restrictions on the

initial grant of 70,000 shares of restricted stock shall lapse

immediately.  During the twenty-four

(24) months of salary continuation, outstanding options, other than the initial

grant referenced above, will continue to vest and restrictions on outstanding

restricted shares will continue to lapse. 

You will not receive any additional stock option or restricted stock

grants during the twenty-four (24) months salary continuation period.  You will have 90 days from the end of the

salary continuation period to exercise any options that are vested at that

time.

 

You will not be entitled to receive

these payments and benefits, or any other type of payment or benefit, if you

voluntarily resign from Home Depot, regardless of when or why you have resigned

from your employment.  You also are not

entitled to receive these payments or benefits, or any other type of payment or

benefit, if you terminated from Home Depot “for cause.”  For purposes of this letter, termination

“for cause” shall mean:

 

•                  Conviction of a

felony involving theft or moral turpitude

•                  Conduct that

constitutes willful gross neglect or willful gross misconduct with respect to

your employment duties which results in material economic harm to the Company

•                  Willful conduct

that constitutes a material violation of the Company’s mutual attraction

policy, substance abuse policy, or compliance policies (each as shall be in

place from time to time)

 

For purposes of determining whether conduct

constitutes willful gross misconduct or willful conduct or whether neglect

constitutes willful gross neglect, no act or omission on your part shall be

considered “willful” unless it is done in bad faith and without reasonable

belief that your action or inaction was in the best interests of the Company.

 

If you terminate your employment with Home Depot for

“good reason,” you will be entitled to the same benefits that you would be

entitled to if you were involuntarily terminated by the Company without cause,

subject to the same terms and conditions. 

“Good reason” shall mean, without your consent:

 

•                  Your assignment

or restructured role outside the Atlanta Metropolitan area

•                  Your assignment

or restructured role with a decrease in base salary

•                  Your assignment

to a position other than Executive Vice President (EVP), or a position that

does not report to the CEO

 

You must give at least 30 days

written notice if you wish to terminate your employment for good reason.

 

4

 

This is a conditional offer of employment contingent on a background

check and drug test results.  As a

condition to your employment, you must take and pass a drug test and pass the

background check.  A positive test

result or failure to pass the background check will result in the denial of

your employment.  Drug testing must be

done within 48 hours from receipt of this letter.  Enclosed is information regarding your drug test.

 

This employment agreement does not obligate the Company to continue

your employment for any specified period of time, subject to the termination “without

cause” and “good reason” provisions outlined above.

 

We are pleased to welcome you to the Home Depot family.  I have enclosed a copy of this letter for

your records.  Please sign, date and

return the original to me.

 

Sincerely,

 

 

	

  /s/  Bob

  Nardelli

  	

   

  
	

  Bob Nardelli

  
	

  Chairman, President & CEO

  

 

 

Enclosures

 

pc:           Dennis Donovan

                Carol Tome

                Tim Crow

 

 

I accept this offer of employment.

 

	

   

  	

  /s/  John Costello

  	

   

  	

  9/29/02

  	

   

  
	

   

  	

  John Costello

  	

   

  	

  Date

  	

   

  

 

5Exhibit

10.4

 

SEPARATION AGREEMENT & RELEASE

 

 

                This is an Agreement between Home Depot U.S.A., Inc.

(hereinafter “Home Depot” or the “Company”) and Larry M. Mercer (the

“Executive”).

 

WHEREAS,

the Company and the Executive intend the terms and conditions of this Agreement

to govern all issues related to the Executive’s employment and termination from

the Company; and,

 

WHEREAS,

the Executive acknowledges that he has been given a reasonable period of time,

up to and including twenty-one (21) days, to consider the terms of this

Agreement; and,

 

WHEREAS,

the Company advises the Executive to consult with a lawyer before signing this

Agreement; and,

 

WHEREAS,

the Executive acknowledges that the consideration provided him under this

Agreement is sufficient to support the releases provided by him under this

Agreement; and,

 

WHEREAS,

the Executive represents that he has not filed any charges, claims or lawsuits

against the Company involving any aspect of his employment which have not been

terminated as of the date of this Agreement; and,

 

WHEREAS,

the Executive understands that the Company regards the representations by him

as material and that the Company is relying on these representations in

entering into this  Agreement,

 

NOW, THEREFORE,

the Company and the Executive agree as follows:

 

1.             Employment Status and Termination Date.  The Executive will be placed on a paid Leave

of Absence (“LOA”) commencing on December 1, 2002 and extending through the

earlier of either (a) March 1, 2004 or (b) Executive’s acceptance of employment

outside the Company.  If Executive

accepts other employment before March 1, 2004, the paid LOA will end

immediately and Executive will be placed on an unpaid LOA, without pay or

benefits, until May 1, 2004. If Executive has not accepted other employment

before March 1, 2004, Executive will be placed on the unpaid LOA, without pay

or benefits, from March 1, 2004 until May 1, 2004.  Executive’s last day of employment will be May 1, 2004

(“Termination Date”), or as otherwise provided in Paragraph 9 (Breach by

Executive) below.  Executive will notify

the Company, in writing, as soon as he has accepted employment outside the

Company.  Executive shall not accrue any

vacation days or credit subsequent to December 1, 2002.

 

2.                                       Annual Salary. 

Executive shall continue at his current salary level during the paid

LOA.

 

3.             Annual Bonus. 

Executive will be eligible for a bonus for Fiscal Year 2002.  There is no minimum or guaranteed

bonus.  The bonus, if any, will be paid

at the same time other officers receive their bonuses.  Executive

will not be eligible for any other bonus payments, including any bonus payments

relating to Fiscal Year 2003 or Fiscal Year 2004.

 

 

4.             Benefits. 

The Executive will be eligible to continue to participate in the

Company’s health and welfare benefit plans, including the Supplemental

Executive Choice Program, during the paid LOA.

 

5.             Stock Options/Restricted Stock.

 

(a)          All of Executive’s outstanding,

non-vested stock options will vest in accordance with the terms of the original

grant except that none of such options shall vest after the Termination

Date.  All of Executive’s vested stock

options must be exercised within 90 days of the Termination Date.

 

(b)         The restrictions on Executive’s

outstanding shares of restricted stock will lapse in accordance with the terms

of the original grant.  The restrictions

on 24,000 outstanding shares of restricted stock, originally scheduled to lapse

between August 16, 2004 and September 18, 2007, will lapse instead on the

Termination Date.  The remainder of

Executive’s outstanding shares of restricted stock (30,000 shares) shall be

forfeited.

 

(c)          Executive shall not be eligible to receive any other

equity-based awards after the Effective Date set forth in Paragraph 16.

 

6.             Release of Claims. The Executive and his heirs,

assigns, and agents release, waive and discharge the Company and its past and

present directors, officers, employees, parents, subsidiaries, affiliates,

related entities, and agents from each and every claim, action or right of any

sort, known or unknown, arising on or before the Effective Date.

 

(a)          The foregoing release includes, but is

not limited to, any claim of discrimination on the basis of race, sex,

religion, sexual orientation, national origin, disability, age, or citizenship

status; any other claim based on any local, state, or federal prohibition,

including but not limited to claims under Title VII of the Civil Rights Act of

1964, as amended, the Age Discrimination in Employment Act of 1967, as amended,

or the Americans With Disabilities Act;

any claim arising out of or related to any alleged express or implied

employment contract, any other alleged contract affecting terms and conditions

of employment, or an alleged covenant of good faith and fair dealing; or any claim for severance pay, bonus, salary,

sick leave, stocks, attorneys’ fees, holiday pay, vacation pay, life insurance,

health or medical insurance or any other fringe benefit, workers’ compensation

or disability.

 

(b)         The Executive represents that he understands the

foregoing release, that rights and claims under the Age Discrimination in

Employment Act of 1967, as amended, are among the rights and claims against the

Company he is releasing, and that he understands that he is not presently

releasing any future rights or claims that might arise after the Effective

Date.

 

(c)          The Executive further agrees never to sue

the Company or cause the Company to be sued regarding any matter within the

scope of the above release. If the Executive 

 

2

 

violates this Release by suing the Company or causing

the Company to be sued, the Company may recover all damages as allowed by law,

including all costs and expenses, including reasonable attorneys’ fees,

incurred by the Company in defending against the suit.

 

7.             Confidential Information.  The

Executive acknowledges that through his employment with the Company he has

acquired and had access to the Company’s confidential and proprietary business

information and trade secrets.  The Executive

agrees that the Company may prevent the use or disclosure of its confidential

information and proprietary business information and trade secrets and

acknowledges that the Company has taken all reasonable steps necessary to

protect the secrecy of the information. 

“Confidential Information” shall include any data or information that is

valuable to the Company and not generally known to competitors of the Company

or other outsiders, regardless of whether the confidential information is in

printed, written or electronic form, retained in the Executive’s memory or has

been compiled or created by the Executive. 

This includes, but is not limited to: technical, financial, personnel,

staffing, payroll, computer systems, marketing, advertising, merchandising,

product, vendor, customer or store planning data, trade secrets, or other

information similar to the foregoing. 

The Executive agrees that he has not and in the future will not use or

disclose to any third party Confidential Information, unless compelled by law

and after notice to the Company, and further agrees to return all documents,

disks, or any other item or source containing Confidential Information, or any

other Company property, to the Company on or before December 1, 2002.  If the Executive has any question

regarding what data or information would be considered by the Company to be

information subject to this provision, the Executive agrees to contact the

Executive Vice President, Human Resources for written clarification.

 

8.             Non-Competition and Non-Solicitation.

 

(a)          The Executive agrees that he will not,

prior to December 1, 2005, enter into or maintain an employment or contractual

relationship, either directly or indirectly, to provide executive or managerial

services in the same or similar manner as he did for the Company to any company

or entity engaged in any way in a business that competes directly or indirectly

with the Company, its parents, subsidiaries, affiliates or related entities, in

the United States, Canada, Puerto Rico, Mexico, or any other location in which

the Company, its parents, subsidiaries, affiliates or related entities

currently conduct business or may conduct business prior to December 1, 2005,

without the prior written consent of the Company.  Businesses that compete with the Company specifically include,

but are not limited to, the following entities and each of their subsidiaries,

affiliates, assigns, or successors in interest: Lowe’s Companies, Inc.

(including, but not limited to, Eagle Hardware and Garden); Hechinger Investment

Company, Inc. (including, but not limited to, Home Quarters, Hechinger, and

Builder’s Square); Payless Cashways, Inc.; Dekor; Sears (including, but not

limited to, Orchard Supply and Hardware Company); Wal-Mart; Home Base, Inc; and

Menard, Inc.

 

(b)         In the event the Executive wishes to

enter into any relationship or employment prior to December 1, 2005 which would

be covered by the above non-compete provision, Executive agrees to request

written permission from the Executive Vice President, Human Resources of the

Company prior to entering any such relationship or 

 

3

 

employment. The Company may approve or not approve of

the relationship or employment at its absolute discretion.

 

(c)          The Executive agrees that prior to

December 1, 2005, he will not directly or indirectly solicit any person who is

an employee of the Company to terminate his or her relationship with the

Company without prior written approval from the Executive Vice President, Human

Resources of the Company.

 

9.             Breach by Executive.  The Company’s obligations to the Executive under this Agreement

are contingent on Executive’s performance of his obligations under this

Agreement. Any material breach by Executive of this Agreement will result in

the immediate cancellation of all Executive’s stock options and restricted

stock, the immediate termination of Executive’s employment, as well as entitle

the Company to all its other remedies allowed in law or equity, including but

not limited to the return of any payments that it made to Executive under this

Agreement and the return to the Company of any proceeds Executive received from

stock options exercised after December 1, 2002 or from shares of restricted

stock where the restrictions lapsed after December 1, 2002.

 

10.           Executive Availability.

 

(a)          During the paid LOA, the Executive shall be available

to provide services to the Company, as requested and authorized by the Company

from time to time, not to exceed forty (40) hours in any given month.  During the unpaid LOA, the Executive agrees

to make himself reasonably available to the Company to respond to requests by

the Company for information pertaining to or relating to the Company and/or the

Company’s affiliates, subsidiaries, agents, officers, directors or employees

which may be within the knowledge of the Executive.

 

(b)         At all times, including after the Termination Date,

Executive agrees to cooperate fully with the Company in connection with any and

all existing or future litigation, charges, or investigations brought by or

against the Company or any of its past or present affiliates, agents, officers,

directors or employees, whether administrative, civil or criminal in nature, in

which and to the extent the Company deems the Executive’s cooperation

necessary.

 

(c)          In conjunction with Executive’s commitments under

subsections (a) or (b) of this paragraph, the Company will reimburse the

Executive for reasonable out-of-pocket expenses incurred as a result of such

cooperation.

 

11.           Non-Disparagement.  The Executive agrees that he will not  make

or cause to be made any statements that disparage, are inimical to, or damage

the reputation of the Company or any of its past or present affiliates,

subsidiaries, agents, officers, directors or employees. In the event such a

communication is made to anyone, including but not limited to the media, public

interest groups and publishing companies, it will be considered a material

breach of the terms of this Agreement and the Executive will be required to

reimburse the Company for any and all compensation and benefits paid under the

terms of this Agreement and all commitments to make additional payments to the

Executive will be null and void. 

Executive shall direct any inquiries 

 

4

 

from prospective

employers to the Executive Vice President, Human Resources for verification of

his employment with the Company.

 

12.           Insider Trading. The Executive

acknowledges that prior to the Termination Date, he remains subject to the

restrictions of the Company’s Insider Trading Policy.  After the Termination Date, the Insider Trading Policy will no

longer apply to the Executive.  However,

the Executive acknowledges that through his employment with the Company he may

have learned material, non-public information regarding the Company.  The federal securities laws prohibit trading

by persons while aware of material, non-public information.  The Executive should seek advice of his

legal counsel prior to conducting any transactions in the Company’s stock if

the Executive thinks he may possess such information.

 

13.           Future

Employment.  The Executive hereby

understands and agrees that he will not be re-employed by the Company in the

future and that Executive will never knowingly apply to the Company, its

subsidiaries, affiliates, parents or divisions for any job or position in the

future.

 

14.           Severability of Provisions. In

the event that any provision in this Agreement is determined to be legally

invalid or unenforceable by any court of competent jurisdiction, and cannot be

modified to be enforceable, the affected provision shall be stricken from the

Agreement, and the remaining terms of the Agreement and its enforceability

shall remain unaffected.

 

15.           Right to Revoke this Agreement.

The Executive may revoke this Agreement in writing within seven (7) days of

signing it. The Agreement will not take effect until the Effective Date. If the

Executive revokes this Agreement, all of its provisions shall be void and

unenforceable.

 

16.           Effective Date. The Effective

Date shall be the day after the end of the revocation period described in

Paragraph 15.

 

17.           Confidentiality. The Executive

shall keep strictly confidential all the terms and conditions, including

amounts, in this Agreement and shall not disclose them to any person other than

the Executive’s spouse and the Executive’s legal or financial advisor, unless

compelled by law to do so. If a person not a party to this Agreement requests

or demands, by subpoena or otherwise, that the Executive disclose or produce

this Agreement or any terms or conditions thereof, the Executive shall

immediately notify the Company and shall give the Company an opportunity to

respond to such notice before taking any action or making any decision in

connection with such request or subpoena.

 

18.           Arbitration.  Any dispute regarding any aspect of this

Agreement or any act which allegedly has or would violate any provision of this

Agreement (“arbitrable dispute”) will be submitted for final and binding

arbitration in Delaware before an experienced employment arbitrator licensed to

practice law in Delaware and selected in accordance with the rules of the

American Arbitration Association, as the exclusive remedy for such claim or

dispute.  The decision of the arbitrator

shall be final and binding and judgment on the award may be entered in any

court of competent jurisdiction.  Should

any party to this Agreement hereafter institute any legal action or

administrative proceeding against the other with respect to any claim waived by

 

5

 

this Agreement or pursue

any arbitrable dispute by any method other than said arbitration, the

responding party shall be entitled to recover from the initiating party all

damages as allowed by law, including but not limited to reasonable attorneys’

fees, costs and expenses incurred as a result of such action.  This paragraph is not applicable to claims

of violation of Paragraphs 7, 8, 11 or 17 (Confidential Information;

Non-Competition and Non-Solicitation; Non-Disparagement; Confidentiality) of

this Agreement.

 

19.           Non-Assignment.  The

Executive represents and warrants that as of the date of this Agreement he has

not assigned or transferred, or purported to assign or transfer, to any person,

firm, corporation, association or entity whatsoever any released claim.  Executive hereby agrees to indemnify and

hold the Company harmless against, without any limitation, any and all rights,

claims, warranties, demands, debts, obligations, liabilities, costs, court

costs, expenses, including attorneys’ fees, causes of action or judgments based

on or arising out of any such assignment or transfer.

 

20.           Entire Agreement. This

Agreement constitutes the entire understanding between the parties. The parties

have not relied on any oral statements that are not included in this Agreement.

Any modifications to this Agreement must be in writing and signed by the

Executive and an authorized executive or agent of the Company.

 

21.           Governing Law.  This Agreement shall be construed,

interpreted and applied in accordance with the law of the State of Delaware,

without giving effect to the choice of law provisions thereof.  Executive and the Company hereby irrevocably

submit to the exclusive concurrent jurisdiction of the courts of Delaware.  Executive and the Company also both

irrevocably waive, to the fullest extent permitted by applicable law, any

objection either may now or hereafter have to the laying of venue of any such

dispute brought in such court or any defense of inconvenient forum for the

maintenance of such dispute, and both parties agree to accept service of legal

process in Delaware.

 

                The Executive understands and

acknowledges the significance and consequences of this Agreement, that the

consideration provided herein is fair and adequate, and represents that the

terms of this Agreement are fully understood and voluntarily accepted.

 

Home Depot U.S.A.,

Inc.

 

 

	

  By:

  	

  /s/ Dennis Donovan

  	

   

  	

  9/16/2002

  
	

   

  	

  Dennis Donovan

  	

   

  	

  Date

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  /s/ Larry M. Mercer

  	

   

  	

  10/7/2002

  
	

   

  	

  Larry M. Mercer

  	

   

  	

  Date

  

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]