Document:

Home Depot Retention Agreement with Thomas Lazzaro

 Exhibit 10.36 
  

					
	 

	  	2455 Paces Ferry Road, N.W.. Atlanta, GA 30339-4024	  	June 12, 2007

 Mr. Tom Lazzaro 
 5725 Emerson Pointe 
 Orlando, FL 32819 
 Dear Tom:

 As you are aware, The Home Depot, Inc. (the “Company”) is exploring strategic alternatives with respect to HD
Supply, Inc. and its subsidiaries, (“HDS,” which for purposes of this Agreement shall include its successors as provided in Section 14 hereof) and the businesses comprising the HDS financial reporting segment (together
with HDS, the “HDS Business Segment”). As you know, such alternatives include the possibility of a sale of the HDS Business Segment to a third party (any sale to a third party of the companies/business divisions comprising
the HDS Business Segment having aggregate annualized sales (as set forth in the HDS business plan for Fiscal 2007) of at least 70% of the aggregate annualized sales of the HDS Business Segment (as set forth in HDS business plan for Fiscal 2007), a
“Sale,” it being understood that neither an initial public offering of some or all of the HDS Business Segment nor a spin-off to the Company’s shareholders of some or all of the companies/business divisions comprising
the HDS Business Segment shall constitute a Sale). For purposes of this Agreement, a “Sale” shall include the consummation of a transaction pursuant to which the HDS Business Unit Segment that you are leading (the “Business
Unit”) is sold to a third party prior to the expiration of this Agreement (as set forth in Section 1 hereof) and, in such case, references in this Agreement to “HDS” shall refer to the legal entity that is the successor
to such Business Unit or the assets thereof (unless the context otherwise requires as determined by the Company in its sole discretion). The Company wishes to ensure your continued service and dedication as it explores alternatives for the HDS
Business Segment. This letter agreement (this “Agreement”) memorializes certain compensation terms that will apply upon and following a Sale. Prior to the effective date of the consummation of a Sale (the closing date of any
Sale, “Closing Date”), the terms of the letter agreement between you and Creative Touch Interiors dated July 27, 2006 (“Current Agreement”) shall continue to apply. 
 1.        Effective Date.  Except as otherwise provided in Section 8, this Agreement shall
be effective as of the date hereof; provided, however, that the provisions hereunder shall not be operative (a) unless and until the Closing Date of a Sale has occurred (prior to the date on which this Agreement expires) or
(b) if you do not continue to be employed by the Company through the Closing Date. Upon the Closing Date of a Sale, this Agreement shall supersede in its entirety the Current Agreement, which shall be without further force or effect. This
Agreement will expire on the earlier of: (i) the date the Company announces its intention to forego a Sale of the HDS Business Segment, and (ii) the last day of the Company’s 2007 fiscal year, if no Sale has occurred by such date
(provided that if a definitive agreement providing for a Sale has been executed prior to such last day but the Closing Date has not yet occurred (other than due to a subsequent termination of any such definitive agreement)), the reference
herein to such last day shall be deemed to refer to June 30, 2008). 
 2.        Employment
Termination.  Your employment with the Company will terminate on the Closing Date, simultaneous with the time that this Agreement supersedes the Current 

 
Agreement. For purposes of clarity, it is understood that such termination of your employment with the Company will not be deemed to be an involuntary
termination of employment for purposes of the third full paragraph of page 4 (relating to involuntary termination) or a termination by the Company for cause, as contemplated by page 5, of the Current Agreement. 
 3.        Accelerated Vesting Benefit.  In the event of a Sale, subject to your continued
employment through the Closing Date, all stock options to acquire Company common stock and restricted shares of Company common stock that are outstanding as of the Closing Date and that were granted to you prior to January 1, 2007 will vest
(the accelerated vesting provided by this sentence, the “Accelerated Vesting Benefit”). Notwithstanding anything herein to the contrary, the Accelerated Vesting Benefit is subject to your execution of a release of claims
against the Company and its respective affiliates in a form satisfactory to the Company substantially in the form set forth on Exhibit A hereto (a “Release”). 
 4.        Retention Bonus. 
 (a)      The Retention Bonus.  In the event of a Sale, you will, subject to your continued employment with HDS (or the purchaser thereof) through the earlier of
(x) the sixth month anniversary of the Closing Date, and (y) December 1, 2008 (such earlier date, the “Retention Bonus Vesting Date”), receive a cash retention payment (the “Retention
Bonus”). The amount of the Retention Bonus shall equal the product of (i) the average closing stock price of the Company’s common stock over the 30 trading days immediately preceding the Closing Date (the “Average
Closing Stock Price”) multiplied by (ii) 12,970. The Retention Bonus shall be paid to you by HDS as soon as administratively practicable following the Retention Bonus Vesting Date but in no event sooner than January 1, 2008
nor later than December 1, 2008, subject to your continued employment through the Retention Bonus Vesting Date (except as otherwise provided in Section 4(b) below). 
 (b)      Termination of Employment in Connection with a Sale.  If (i) you are involuntarily
terminated by HDS without Cause or as a result of your disability, or (ii) you resign from HDS for Good Reason or die, in each case following the Closing Date but prior to the Retention Bonus Vesting Date (each, a “Qualifying
Termination”), you will receive the Retention Bonus from HDS at the time set forth in Section 4(a) above. 
 (c)      Signing Bonus.  In the event of a Sale, you will not be required to repay the signing bonus you received under your Current Agreement (“Signing Bonus”) to HDS
(or the purchaser thereof), however, you shall be required to repay the Signing Bonus to the Company in the event you voluntarily terminate your service with the HDS (or the purchaser thereof), or violate the covenants of Sections 9 or 10, before
August 14, 2008. 
 (d)      Notwithstanding anything herein to the contrary, the payment of the Retention
Bonus is subject to your execution of a Release. 
 (e)      Definitions.  For purposes of
this Agreement: 
 “Cause” shall mean the occurrence of one of the following events following the Closing Date:
(i) conviction of any felony involving theft or moral turpitude, (ii) conduct that constitutes willful gross neglect or willful gross misconduct with respect to your employment duties which 

 
results in material economic harm to HDS, or (iii) willful conduct that constitutes a material violation of HDS’s substance abuse, compliance or
any other policies applicable to you, which are in effect at the time of the occurrence. 
 “Good Reason” shall mean
the occurrence of one of the following events following the Closing Date without your prior written consent: (i) HDS decreases your base salary and target annual cash bonus opportunity (it being understood that the actual metrics and
achievement levels are to be determined by HDS in its discretion, but shall in good faith be designed to offer a reasonable opportunity to achieve target levels of achievement), in the aggregate, below the aggregate of your base salary and target
annual cash bonus opportunity (exclusive of any bonuses payable hereunder) in effect on the Closing Date, or (ii) HDS decreases your base salary to less than eighty percent (80%) of your base salary in effect on the Closing Date, or
(iii) assignment to a position that does not report to the chief executive officer of HDS, or (iv) your principal place of employment is relocated to a location that is not within either the Atlanta, Georgia or Orlando, Florida
metropolitan areas; or (v) you are not covered by a severance plan or agreement that provides a benefit of at least 12 months’ base salary (at a rate no lower than your base salary on the date hereof) continuation, payable in equal
installments in accordance with HDS’s normal payroll practices. 
 5.        Severance in
Connection with a Sale.  In the event of a Sale, if both of the following occur: (a) HDS (or the purchaser thereof) offers you (or offers to continue your) employment only on terms that would result in you being able to terminate
for Good Reason and (b) you are not employed by HDS as of immediately following the Closing Date, subject to your execution of a Release, then, (i) you will receive the Accelerated Vesting Benefit set forth in Section 3, (ii) HDS
will pay you the Retention Bonus at the time set forth in Section 4(a) above, subject to your execution of a Release, and (iii) you will be provided a benefit of at least 12 months’ base salary continuation (at a rate no lower than
your base salary on the date hereof), payable, subject to Section 12, in equal installments in accordance with HDS’s normal payroll practices. Notwithstanding anything contained herein, in no event will you be entitled to duplicate
payments under this Agreement. 
 6.        Vested Equity and Sale.  All of your
stock options to acquire Company common stock that are vested as of the Closing Date (included any stock options that accelerated pursuant to Section 3) will be forfeited if not exercised within 90 days of the Closing Date, and all of your
unvested equity (i.e., stock options and restricted stock) shall be forfeited and cancelled immediately as of such Closing Date. 
 7.        Incentive Award.  If a definitive agreement providing for a Sale is executed prior to the last day of the 2007 fiscal year, your bonus for such year shall be determined as
follows: Subject to your continued employment through the end of such year (or, if earlier, the Closing Date), you will be paid by the Company, on the date annual bonuses are distributed to Company employees generally, a bonus based on actual HDS
performance (but disregarding any unbudgeted special charges related to the Company’s discontinuance of operations determined in accordance with GAAP) relative to the targets referenced in the next sentence, which bonus amount shall be
determined by the Company in good faith in its sole discretion. The performance goals for the fiscal year 2007 bonus are the monthly EBIT targets set forth on Schedule A hereto. Such bonus will, if the Closing Date occurs prior to the
end of the 2007 fiscal 

 
year, be prorated based on the actual number of days in such fiscal year before the Closing Date, and determined by comparing performance through the last
full month prior to the Closing Date to the year-to-date performance goal referenced in the preceding sentence as of such last full month. Such bonus (whether or not prorated) will be based 100% on achievement of the foregoing financial targets and
will have no discretionary portion based on individual performance. The provisions of this Section 7 shall become effective upon the execution prior to the last day of the 2007 fiscal year of a definitive agreement providing for a Sale, and
shall at such time supersede any previous Company actions, or communications to you, in respect of annual bonus for the 2007 fiscal year. 
 8.        At-Will Employment.  Both you and the Company have the absolute power to terminate your employment at any time for any reason, notwithstanding any other obligation under
this Agreement. This Agreement should not be construed, nor is it intended to be, a contract of employment for a specified period of time. 
 9.        Confidential Information and Trade Secrets. 
 (a)       You acknowledge that through your employment you have acquired and had access to, and will continue to acquire and have access to, the Company’s Confidential Information and that through
your employment with HDS you have acquired and had access to, and will continue to acquire and have access to, the Confidential Information of HDS. You acknowledge and agree that you will not publish, disclose or use any Confidential Information,
except in connection with the good faith performance of your duties for the Company and HDS, provided that following a Sale, you will not be able to publish, disclose or use the Confidential Information of the Company for any purpose, except
that you may comply with legal process and governmental inquiry and you shall not be prevented from using Confidential Information of the HDS Business Segment (even if they overlap with those of the Company) while you are employed by HDS (or the
purchaser thereof). Further, any claims of violation of these provisions with regard to HDS Confidential Information shall be that of HDS and not of the Company. You agree that, during your employment and thereafter, you will hold in confidence all
Confidential Information and will not, except as provided above disclose, publish or make use of such Confidential Information, unless compelled by law, it being agreed that you will promptly notify the Company or HDS (as applicable) upon becoming
aware that you may be so compelled by law to disclose, publish or make use of such Confidential Information. You further agree to return all documents, disks or any other item or source containing Confidential Information, or any other Company or
HDS property (as applicable), to the Company or HDS (as applicable) on or before your termination date from the applicable entity, provided that you may retain and use the contact information in your address books. “Confidential
Information” shall include any data or information, other than trade secrets, that is valuable to the Company or HDS (as applicable) or any of their respective affiliates, and not generally known to competitors of the Company or HDS (as
applicable) or other outsiders, regardless of whether the confidential information is in printed, written, or electronic form, retained in your memory, or has been compiled or created by you. This includes, but is not limited to: technical,
financial, personnel, staffing, payroll, computer systems, marketing, advertising, merchandising, operations, strategic planning, product, vendor, customer or store planning data, trade secrets or other information similar to the foregoing.

 (b)       You also acknowledge that through your employment you have
acquired and had access to, and will continue to acquire and have access to, the Company’s Trade Secrets and those of HDS. You further acknowledge that the Company and HDS have made reasonable efforts under the circumstances to maintain the
secrecy of their Trade Secrets. You agree to hold in confidence all Trade Secrets of the Company and HDS (as applicable) that come into your knowledge during your employment with either the Company or HDS (as applicable) and you shall not disclose,
publish or make use of at any time such Trade Secrets for so long as the information remains a Trade Secret, except in the good faith performance of your duties. Following a Sale, you will not be able to disclose, publish or make use of the Trade
Secrets of the Company for any purpose, provided that the foregoing shall not prevent you from using the Trade Secrets of the HDS Business Segment (even if they overlap with those of the Company) while you are employed by HDS (or the
purchaser thereof) provided you may comply with legal process and governmental inquiry, and any claim of violation of these provisions with regard to HDS trade secrets shall be that of HDS and not of the Company. “Trade
Secret” means information, without regard to form, including, but not limited to, any technical or non-technical data, formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, financial plans,
strategic plans, product plans or list of actual or potential customers or suppliers which is not commonly known by or available to the public and which information: (i) derives economic value, actual or potential, from not being generally
known to, and not being readily ascertainable by proper means by, other persons who can derive economic value from its disclosure or use and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 10.      Non-Competition and Non-Solicitation. 
 (a)       Subject to Section 10(c), you agree that you will not, while employed by the Company or HDS (as
applicable) or any of their respective affiliates, and (i) with respect to the Company, for one year following the Closing Date, and (ii) with respect to HDS, for one year following your termination of employment with HDS and its
affiliates (which shall include a termination of employment in the event HDS does not offer you, or offer to continue your, employment), enter into or maintain an employment, contractual or other relationship, either directly or indirectly, to
provide executive, managerial, consulting or finance services to any company or entity engaged in any way in a business that materially competes (in any market or location), directly or indirectly, (A) as this provision relates to the Company,
in the home improvement retail and professional supply industries with the Company or any of its affiliates in the United States, Canada, Puerto Rico, Mexico, China or any other location in which they currently conduct business or plan to conduct
business prior to the end of the applicable above-referenced one-year period or (B) as this provision relates to HDS, in the industrial wholesale construction industry with HDS or any of its affiliates in the United States, Canada, Puerto Rico,
Mexico, China or any other location in which they currently conduct business or plan to conduct business prior to the end of the applicable above-referenced one-year period, in each case without the prior written consent of the Company and/or HDS
(as applicable), which may be approved or denied in the Company’s and/or HDS’s (as applicable) discretion. 
 (b)       You agree that while employed by the Company or HDS (as applicable) or any of their respective affiliates, and (i) as this provision relates to the Company, for two years following the
Closing Date, and (ii) as this provision relates to HDS, for two years following 

 
your termination of employment with HDS or its affiliates (which shall include a termination of employment in the event HDS does not offer you, or offer to
continue your, employment) (either period referred to herein as the “Non-Solicit Restricted Period”), you will not, directly or indirectly, solicit (A) with respect to the Company, any person who is (or was during the
six-month period prior to such solicitation) an employee of the Company or its affiliates (other than an employee of the HDS Business Segment as of immediately prior to the consummation of a Sale) and (B) with respect to HDS, any person who is
an employee (or was during the six-month period prior to such solicitation) of HDS or its affiliates as of immediately following the Closing Date or thereafter, to terminate his or her relationship with the Company or HDS (as applicable) or any of
their respective affiliates. The foregoing shall not be violated by general advertising that is not specifically targeted at employees of the Company or HDS (as applicable). 
 (c)       The Company acknowledges and agrees that during your period of employment with HDS following a Sale,
Section 10(a) shall not prohibit you from performing services for HDS or shall apply to actions taken by you in the course of such employment. In the event your employment with HDS terminates prior to the expiration of the applicable restricted
period as it relates to the Company under Section 10(a), the foregoing exception shall not apply, and the Company shall be entitled to enforce the restrictions set forth in Section 10(a) against you as those restrictions relate to the
businesses of the Company and of the HDS Business Segment as it existed on the Closing Date. 
 (d)       The Company, HDS and you acknowledge that the time, scope, geographic area and other provisions of Sections 9 and 10 have been specifically negotiated by sophisticated commercial parties and
agree that all such provisions are reasonable under the circumstances of the activities contemplated by this Agreement. You acknowledge and agree that the terms of Sections 9 and 10: (i) are reasonable in light of all of the circumstances,
(ii) are sufficiently limited to protect the legitimate interests of the Company and HDS and their respective affiliates, (iii) impose no undue hardship on you, (iv) are not injurious to the public, (v) were a condition to the
willingness of the Company and HDS to provide the payments under this Agreement and (vi) were relied upon by the Company and HDS in connection with pursuit of a Sale. You further acknowledge and agree that (A) your breach of the provisions
of Section 9 or 10 will cause the Company and HDS irreparable harm, which cannot be adequately compensated by money damages, and (B) if the Company and/or HDS elects to prevent you from breaching such provisions by obtaining an injunction
against you, there is a reasonable probability of the Company’s or HDS’s eventual success on the merits. You consent and agree that, notwithstanding the provisions of Section 17, if you commit any such breach or threaten to commit any
breach, the Company and HDS (as applicable) shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in
addition to, and not in lieu of, such other remedies as may be available to the Company and HDS for such breach, including the recovery of money damages. In the event that any provision of Section 9 or 10 shall be determined by any court of
competent jurisdiction to be unenforceable by reason of such provision extending for too great a period of time or over too great a geographical area or by reason of such provision being too extensive in any other respect, such provision(s) shall be
interpreted to extend only over the maximum period of time for which they may be enforceable and/or over the maximum geographical area as to which they may be enforceable and/or to the maximum extent in all other respects as to which they may he
enforceable, all as determined by such court in such action. 

 (e)       You agree and understand that each of the Company and HDS,
as applicable, shall have the right to enforce the provisions of Sections 9 and 10 against you. 
 11.      Tax Withholding.  Any payments provided for under this Agreement shall be paid net of any applicable withholding tax required under federal, state or local law and any additional
withholding tax to which you have agreed. 
 12.      Code Section 409A.  This Agreement
is intended to satisfy the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), to the extent applicable, and shall be construed accordingly. Notwithstanding the foregoing
provisions of this Agreement, to the extent that you are classified as a “specified employee” within the meaning of Section 409A of the Code (with such classification to be determined in accordance with the methodology established by
the applicable employer), cash severance amounts pursuant to Section 5 that would otherwise be payable under this Agreement during the six-month period immediately following your termination of employment with the Company or HDS (as applicable)
shall instead be paid, on the first business day after the date that is six months following your “separation from service” within the meaning of Section 409A of the Code. If any compensation provided by this Agreement may result in
the application of Section 409A of the Code, the Company (or following the Closing Date, HDS) shall take any actions it deems necessary, including modifying the Agreement, in order to exclude such compensation from the definition of
“deferred compensation” within the meaning of such Section 409A of the Code or to comply with the provisions of Section 409A of the Code, but shall to the extent possible maintain the same economic intent. 
 13.      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. 
 14.      Successors and Assigns.  HDS will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of HDS (including to substantially all of the HDS Business Segment) to assume and agree in a writing delivered to
you to perform this Agreement in the same manner and to the same extent that HDS would be required to perform it if no such succession had taken place (but without duplication of payments), and you hereby consent to any such assumption. As used in
this Agreement, “HDS” shall mean HDS as hereinbefore defined and any successor to its business and/or assets (including to substantially all of the HDS Business Segment). The Company may at any time and from time to time
assign its rights and obligations hereunder to any of its subsidiaries or affiliates, provided that no such assignment shall relieve the Company from its specific obligations hereunder or impair the Company’s right to enforce this
Agreement against you. The obligations of the Company and HDS under this Agreement are several, not joint. 

 15.      Entire Agreement.  This Agreement constitutes the
entire understanding between the parties and supersedes all prior agreements and undertakings, except that, as set forth above, the Current Agreement shall remain in effect until the Closing Date of a Sale. The parties have not relied on any oral
statements that are not included in this Agreement. Any amendment to this Agreement must be in writing. 
 16.      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. 
 17.      Arbitration.  Subject to Section 10(d), any dispute, controversy or
claim arising out of or related to this Agreement, including, but not limited to, a claim for breach or an action for declaratory judgment regarding the validity of this Agreement or any provision hereof (a “Claim”), shall be
settled by final and binding arbitration pursuant to the rules of the American Arbitration Association. Any such arbitration shall be conducted by one arbitrator mutually acceptable to the parties, who has substantial experience in the matters
covered by this Agreement. If the parties are unable to agree on the arbitrator within thirty (30) days of one party’s giving the other party written notice of intent to arbitrate, the American Arbitration Association shall appoint an
arbitrator with such qualifications to conduct such arbitration. The decision of the arbitrator shall be conclusive and binding on the parties. The arbitration shall be conducted in Atlanta, Georgia or such other location to which the parties may
agree. The arbitrator shall have the authority to determine the arbitrability of any Claim. The parties understand and agree that the arbitrator shall have the authority to award any remedy or relief that a court of competent jurisdiction could
order or grant, including, without limitation, the issuance of preliminary and permanent injunctive relief. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. Except as necessary in court proceedings
to enforce this arbitration provision or an award rendered hereunder, or to obtain interim relief, neither a party nor an arbitrator may disclose the existence, content or results of any arbitration hereunder without the prior written consent of the
Company or HDS (as applicable) except as may otherwise be required by law. The losing party shall bear the reasonable attorneys’ fees and expenses of both parties in the event of any dispute governed by this Section 17 or by
Section 10(d), provided that you shall not be liable for the fees and expenses of the Company or HDS if the arbitrator finds that your overall position was not frivolous and was advanced in good faith. 
 18.      Limitation of Actions.  Any arbitration or other claim with respect to any benefit payable or
other matter arising out or relating to this Agreement must be formally initiated no later than one (1) year after the claim arises or be forever barred. 
 19.      Advice of Counsel.  You acknowledge in executing this Agreement that you have had the opportunity to seek the advice of independent legal counsel and that you
have read and understood all of the terms and provisions of this Agreement. This Agreement will not be construed against any party by reason of the drafting or preparation hereof. 
 To evidence and confirm your agreement to all the terms and conditions set forth in this Agreement, please execute and date the enclosed copy of this
Agreement in the space provided below. 

					
		 	THE HOME DEPOT, INC.
			
		 	By:	 	  /s/ Carol B. Tomé

		 		 	Carol B. Tomé
		 		 	 Executive Vice President – Corporate Services
 and Chief Financial Officer

		
		 	ARVADA HARDWOOD FLOOR COMPANY
		 	       (d/b/a Creative Touch Interiors)
			
		 	By:	 	 /s/ Carol B. Tomé

		 		 	Carol B. Tomé
		 		 	Vice President and Treasurer

 [SIGNATURES CONTINUED ON NEXT PAGE] 

					
		 	HD SUPPLY, INC.
			
		 	By:	 	 /s/ Joseph J. DeAngelo

		 		 	Joseph J. DeAngelo
		 		 	President

  

			
	ACCEPTED AND AGREED:	 	
		
	 /s/ Tom Lazzaro
	 	            6/18/07            
	Tom Lazzaro	 	DateTax Sharing Agreement

 Exhibit 10.37 
 EXECUTION COPY 
 TAX SHARING AGREEMENT 
 This Tax Sharing Agreement (the “Agreement”), dated as of August 30, 2007, is made and entered into by and among HDS Investment
Holding, Inc., a Delaware corporation (formerly known as Pro Acquisition Corporation, “Parent”), HDS Acquisition Subsidiary, Inc., a Delaware corporation (“Acquisition Corp”), HDS Holding Corporation, a Delaware
corporation and HD Supply, Inc., a Texas corporation (the “Company”). This Agreement shall become effective and binding upon the parties hereto immediately upon the effective time of the Acquisition (as defined below) (the
“Effective Time”). 
 W I T N E S S E T H: 

WHEREAS, the parties hereto desire to provide for the allocation of liabilities, procedures to be followed, and other matters with respect to Combined
Taxes (as defined below); 
 WHEREAS, Parent, an acquisition vehicle formed by investors led by private investment funds managed by Bain
Capital Investors, LLC, TC Group, L.L.C. and Clayton, Dubilier & Rice, Inc., has executed that certain Purchase and Sale Agreement, dated as of June 19, 2007, as amended (the “Purchase Agreement”), by and among Parent,
Acquisition Corp., The Home Depot, Inc., THD Holdings, LLC, Home Depot International, Inc., and Homer TLC, Inc., pursuant to which Parent has agreed to cause certain of its subsidiaries to acquire all of the capital stock of the Company and CND
Holdings, Inc. and certain related intellectual property rights described in the Purchase Agreement (the “Acquisition”). 
 WHEREAS, after the Closing (as defined in the Purchase Agreement) and the filing of certificates of merger by Acquisition Corp in the State of Delaware and the State of Texas, Acquisition Corp. will merge with and into the Company (the
“Merger”), with the Company being the surviving corporation of the Merger; 
 WHEREAS, following the consummation of the
Merger and the filing of certificates of conversion by the Company in the State of Delaware and the State of Texas, the Company will convert into a Delaware corporation; 

 NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 ARTICLE I 

DEFINITIONS 
  

	1.	Definitions. 

 Code: shall mean the Internal
Revenue Code of 1986, as amended. 
 Combined Tax: shall mean any Tax in respect of a Combined Tax Group. 
 Combined Tax Group: shall mean any affiliated group of which the Company or any of its Subsidiaries was or is, or was or is required to be, a
member for any Tax year and of which a Parent Entity was or is, or was or is required to be, the common parent for purposes of paying Taxes or filing a Tax Return. 
 Combined Tax Return: shall mean any Tax Return with respect to any Combined Tax. 
 Company
Group: shall mean, with respect to any Combined Tax, a subgroup of the relevant Combined Tax Group, whose member or members shall include each member of such Combined Tax Group that is either the Company or a Subsidiary of the Company.

 Due Date: shall mean, with respect to the filing of any Tax Return or the payment of Tax, the date on which such Tax Return is due
to be filed with, or such payment is due to be made to, the appropriate Taxing Authority pursuant to applicable law, giving effect to any applicable extensions of the time for such filing or payment. 
 Estimated Tax Sharing Payments: shall mean the periodic tax sharing payments required under Article III, Section 2 of this Agreement.

 IRS: shall mean the United States Internal Revenue Service, including, but not limited to, its authorized agents and
representatives and, in the case of a litigated controversy, the attorneys representing it. 
 Parent Entity: shall mean Parent and
any Subsidiary of Parent other than the Company or any Subsidiary of the Company. 
 Person: shall mean any individual, corporation,
partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity. 

 Pro Forma Company Return: shall mean a pro forma Tax Return prepared pursuant to Article III,
Section 1 or 3. 
 Subsidiary: shall mean, with respect to any Person at any time, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of shares of capital stock or other equity interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by (a) such Person or (b) one or more Subsidiaries of such Person. 
 Tax: shall mean any federal, state, local or foreign income, alternative minimum, accumulated earnings, personal holding company, franchise,
capital stock, profits, windfall profits, gross receipts, sales, use, value added, transfer, registration, stamp, premium, excise, customs duties, severance, environmental (including taxes under section 59A of the Code), real property, personal
property, ad valorem, rent, occupancy, license, occupation, employment, payroll, social security, disability, unemployment, workers’ compensation, withholding, estimated or other similar tax, duty, fee, assessment or other governmental charge
or deficiencies thereof (including all interest and penalties thereon and additions thereto). 
 Tax Return: shall mean any federal,
state, local or foreign tax return, declaration, statement, report, schedule, form or information return or any amendment to any of the foregoing relating to Taxes. 
 Taxing Authority: shall mean, with respect to any Tax, the governmental entity or political subdivision thereof that imposes such Tax, and the agency (if any) charged with the collection of such Tax for such
entity or subdivision. 
 Treasury Regulations: shall mean the regulations prescribed under the Code. 
  

	2.	Successors. 

 References to the Company, Parent or a
Parent Entity shall include any successor thereto or any Person with respect to which the Company, Parent or such Parent Entity, respectively, is the successor. 

 ARTICLE II 
 PROCEDURAL MATTERS 
  

	1.	The applicable Parent Entity shall have the sole and exclusive responsibility for the preparation and filing of each Combined Tax Return for each Combined Tax with respect to which
it is the common parent, including any amended returns and any other returns, documents or statements required to be filed with any Taxing Authority relating to such Combined Tax Return. All such Combined Tax Returns shall be filed by such Parent
Entity on a timely basis, taking into account extensions of the due date for the filings of such returns. 

  

	2.	The Company shall, and shall cause each of its Subsidiaries that is eligible to be a member of the relevant Combined Tax Group to, join and continue to join in filing a Combined Tax
Return with respect to each jurisdiction for all Tax years for which such Subsidiary is eligible to do so under the applicable Tax law, unless Parent shall request otherwise. 

  

	3.	The applicable Parent Entity shall (a) make all payments to the applicable Taxing Authority of all Combined Taxes that the relevant Combined Tax Group is required to
pay, including estimated payments relating thereto and (b) have the right to exercise all powers of a common parent with respect to each Combined Tax Return or Combined Tax. 

  

	4.	The applicable Parent Entity shall be the sole and exclusive agent of the Combined Tax Group of which it is the common parent and of each member of such group in respect of any and
all matters relating to any Combined Tax of such group for all Combined Tax Return years. In its sole discretion, such Parent Entity shall have the right with respect to each such Combined Tax Return (a) to determine (i) the
manner in which such return shall be prepared and filed, including, without limitation, the manner in which any item of income, gain, loss, deduction or credit shall be reported and the adoption or change of any method of accounting,
(ii) whether any extensions may be requested and (iii) the elections that will be made by each member of the Combined Tax Group for which such Combined Tax Return is filed, (b) to contest, compromise or settle any
adjustment or deficiency proposed, asserted or assessed as a result of any audit of such return by any Taxing Authority, (c) to file, prosecute, compromise or settle any claim for refund and (d) to determine whether any
refund to which such Combined Tax Group may be entitled shall be paid by way of refund or credited against the Combined Tax liability of such group. The Company hereby irrevocably appoints, and shall cause each of its Subsidiaries that is a member
of each such Combined Tax Group to irrevocably appoint such Parent Entity as its agent and attorney-in-fact to take such action (including the execution of documents) as such Parent Entity may deem appropriate to effect the foregoing.

	5.	The Company shall, and shall as appropriate cause each of its Subsidiaries that is a member of a Combined Tax Group to, reimburse the applicable Parent Entity for
(a) any outside legal and accounting expenses incurred by such Parent Entity in the course of the conduct of any audit or contest regarding a Combined Tax liability of such group, (b) any other expenses incurred by such
Parent Entity in the course of any litigation relating thereto and (c) the cost of preparing any Combined Tax Return or otherwise administering this Agreement. 

  

	6.	The Company shall, and shall cause each of its Subsidiaries that is a member of a Combined Tax Group to, furnish to the applicable Parent Entity in a timely manner such
information, documents and other assistance, in each case as such Parent Entity may reasonably request in connection with the filing of each Combined Tax Return with respect to such group or any audit or examination by any Taxing Authority or any
judicial or administrative proceeding relating to a Combined Tax of such group or otherwise with respect to this Agreement and the transactions contemplated hereby. 

 ARTICLE III 
 TAX SHARING PAYMENTS 
  

	1.	 For each Tax year for which a Parent Entity files, or is required to file, a Combined Tax Return on or after the Effective Time, the applicable Parent Entity shall
timely prepare, or cause to be prepared, a Pro Forma Company Return for the relevant Company Group for such year (including, if necessary, preparing Pro Forma Company Returns for prior years). Each such Pro Forma Company Return shall include only
the items of income, deduction, gain, loss and credit of the members of the Company Group that join in the filing of such Combined Tax Return, and shall be prepared in a manner consistent with the elections, methods of accounting, and positions
with respect to specific items made or used by such Parent Entity for purposes of such Combined Tax Return. Each such Pro Forma Company Return shall reflect any carryovers of net operating losses, net capital losses, excess tax credits or other tax
attributes from Pro Forma Company Returns with respect to the same Combined Tax for prior years assuming that members of such Company Group had not been in existence before the Effective Time, which carryovers could have been utilized by the Company
Group if such Company Group had never been included in the relevant Combined Tax Group, but only to the extent such Parent Entity utilizes such carryovers. For purposes of this Article III, Section 1, (a) a carryover will be
treated as utilized by a Parent Entity to the extent that the Tax liability of the relevant Combined Tax Group 

	 	 
determined taking into account such carryover is less than the Tax liability of such Combined Tax Group determined without giving effect to such carryover,
(b) any provision of the Code that requires consolidated computations, such as sections 861 and 1231, and any similar provision with respect to any other Combined Tax, shall be applied separately to the Company Group for purposes of
preparing the Pro Forma Company Return and (c) Treasury Regulations section 1.1502-13, and any similar provisions with respect to any other Combined Tax, shall be applied as if the Company Group were not a part of the relevant
Combined Tax Group. The Pro Forma Company Return shall be provided to the Company no later than 10 days before the Due Date for filing the relevant Combined Tax Return. 

  

	2.	For each Tax year in which a Combined Tax Return is, or is required to be, filed by a Parent Entity, the Company shall, and shall as appropriate cause each of its Subsidiaries that
is a member of the relevant Combined Tax Group to, make periodic payments (“Estimated Tax Sharing Payments ”) to such Parent Entity in such amounts as, and no later than the dates on which, payments of estimated tax with respect to
such Combined Tax would be due on or after the Effective Time from the Company Group under section 6655 of the Code, and any similar provisions with respect to any other Combined Tax, if it were not included in the relevant Combined Tax Group
(computed on a basis consistent with the relevant Pro Forma Company Return). The balance, if any, of the Estimated Tax Sharing Payments due on or after the Effective Time for such Tax year shall be paid to such Parent Entity no later than
December 15 of such year. The Company shall, and shall as appropriate cause each of its Subsidiaries that is a member of the relevant Combined Tax Group to, pay to the applicable Parent Entity no later than the Due Date (for this purpose,
determined without regard to extensions) on which each Combined Tax Return for each Tax year is, or is required to be, filed by such Parent Entity on or after the Effective Time, an amount equal to the excess of (a) the sum of
(i) the Tax liability shown on the relevant Pro Forma Company Return prepared for such Tax year and (ii) the additions to tax, if any, under section 6655 of the Code, and any similar provisions with respect to any other
Combined Tax, that would have been imposed upon the Company Group (treating the amount due to such Parent Entity under clause (i) above as the Company Group’s Tax liability and treating any Estimated Tax Sharing Payments as estimated Tax
payments with respect to such liability) over (b) the Estimated Tax Sharing Payments made relating thereto. 

  

	3.	 To the extent that, after the Effective Time, any audit, litigation, claim or refund with respect to a Combined Tax Return results in an increase in Tax liability
relating to the treatment of a Company Group item, a corresponding adjustment 

	 	 
shall be made to such item and to the Company Group’s Tax liability reflected on the applicable Pro Forma Company Return. Within 5 days after any such
adjustment, the Company shall, and shall as appropriate cause each of its Subsidiaries that is a member of the relevant Combined Tax Group to, make additional Tax sharing payments, including interest and penalties consistent with such adjustment, to
the applicable Parent Entity. 

  

	4.	All calculations required to be made by a Parent Entity under this Agreement shall be binding upon the parties hereto absent manifest error. 

 ARTICLE IV 
 INTEREST 
  

	1.	With respect to any federal income Tax, any amount relating thereto which is required to be paid by the Company or any of its Subsidiaries pursuant to this Agreement and which has
not been timely paid to the applicable Parent Entity shall be subject to an interest charge at the rate and in the manner provided in the Code for interest on underpayments of federal income Tax for the relevant period. 

  

	2.	With respect to any Combined Tax other than federal income Tax, any amount relating thereto which is required to be paid by the Company or any of its Subsidiaries pursuant to this
Agreement and which has not been timely paid to the applicable Parent Entity shall be subject to an interest charge at the rate and in the manner provided under the applicable state or local statute for interest on underpayments of such Tax for the
relevant period. 

 ARTICLE V 
 MISCELLANEOUS PROVISIONS 
  

	1.	Any information or documents furnished by one party to another pursuant to this Agreement shall be treated as confidential and, except as, and to the extent, required during the
course of an audit or litigation or otherwise required by law, shall not be disclosed to another Person without the consent, which shall not be unreasonably withheld, of the first party. 

	2.	All payments to be made by any party under this Agreement shall, except to the extent otherwise specifically provided herein, be made without setoff, counterclaim or withholding,
all of which are expressly waived. 

  

	3.	Nothing in this Agreement shall be construed to require a party hereto to pay any liability or obligation arising under this Agreement more than once. 

  

	4.	If due to any change in applicable law, regulations, or interpretation thereof after the date of this Agreement, performance of any provision of this Agreement or any transaction
contemplated thereby shall become impracticable or impossible, the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such provision.

  

	5.	This Agreement shall be binding upon and inure to the benefit of any successor to each of the parties, by merger, acquisition of assets or otherwise, to the same extent as if the
successor had been an original party to this Agreement. 

  

	6.	This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to the rules or principles of conflict of laws thereof,
to the extent the same are not mandatorily applicable by statute and would permit or require the application of the laws of another jurisdiction. 

  

	7.	This Agreement may be executed simultaneously in one or more counterparts, each of which will be deemed an original, but all of which when taken together shall constitute one and
the same instrument. 

  

	8.	The headings in this Agreement are for convenience only and shall not be deemed for any purpose to constitute a part or to affect the interpretation of this Agreement.

  

	9.	This Agreement may be amended from time to time by agreement in writing executed by all the parties hereto or all of the parties then bound thereby. This Agreement constitutes the
entire agreement with respect to the subject matter hereof and supersedes all prior written and oral understandings with respect thereto. 

	10.	Any notice, request or other communication required or permitted in this Agreement shall be in writing and shall be sufficiently given if personally delivered or if sent by
registered or certified mail, postage prepaid, addressed as follows: 

 If to a Parent Entity: 
 HDS Investment Holding, Inc. 
 c/o HD
Supply, Inc. 
 3100 Cumberland Blvd, Suite 1480 
 Atlanta, Georgia 30339 
 Attention:  General Counsel 
 Facsimile: (770) 852-9466 
 If to the
Company: 
 HD Supply, Inc. 
 3100 Cumberland Blvd., Suite 1480 
 Atlanta, Georgia 30339 
 Attention: General Counsel 
 Facsimile:  (770) 852-9466 
 In each case, with a copy to (which shall not constitute notice): 
 Debevoise & Plimpton LLP 
 919
Third Avenue 
 New York, New York 10022 
 Attention:  Paul D. Brusiloff 
 Facsimile:  (212) 909-6836 
 Telephone: (212) 909-6000 
 or to such other address as
set forth in writing by either party to the other in accordance with this section. 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
authorized representatives. 
  

			
	HDS INVESTMENT HOLDING, INC.
		
	By:	 	 /s/ Glenn A. Youngkin

		 	Name:  Glenn A. Youngkin
		 	Title:    Executive Vice President

 [Tax Sharing Agreement] 

			
	HDS ACQUISITION SUBSIDIARY, INC.
		
	By:	 	 /s/ Glenn A. Youngkin

		 	Name:  Glenn A. Youngkin
		 	Title:    Executive Vice President

 [Tax Sharing Agreement] 

			
	HDS HOLDING CORPORATION
		
	By:	 	 /s/ Glenn A. Youngkin

		 	Name:  Glenn A. Youngkin
		 	Title:    Executive Vice President

 [Tax Sharing Agreement] 

			
	HD SUPPLY, INC.
		
	By:	 	 /s/ Ricardo Nunez

		 	Name:  Ricardo Nunez
		 	Title:    Vice President and Secretary

 [Tax Sharing Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]