Document:

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                                                                   EXHIBIT 10.19

                        COMMERCIAL PAPER DEALER AGREEMENT
                                 [4(2) PROGRAM]

                                     BETWEEN

                         THE HOME DEPOT, INC., AS ISSUER

                                       AND

                CREDIT SUISSE FIRST BOSTON CORPORATION, AS DEALER

                 CONCERNING NOTES TO BE ISSUED PURSUANT TO AN ISSUING AND
                 PAYING AGENCY AGREEMENT DATED AS OF JANUARY 5, 1998
                 BETWEEN THE ISSUER AND BANK ONE, NATIONAL ASSOCIATION,
                 SUCCESSOR TO THE FIRST NATIONAL BANK OF CHICAGO, AS
                 ISSUING AND PAYING AGENT

                                   DATED AS OF

                                JANUARY 24, 2001

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                        COMMERCIAL PAPER DEALER AGREEMENT
                                 [4(2) PROGRAM]

         This agreement ("Agreement") sets forth the understandings between the
Issuer and the Dealer in connection with the issuance and sale by the Issuer of
its short-term promissory notes pursuant to the Issuing and Paying Agency
Agreement dated as of January 5, 1998 between the Issuer and Bank One, National
Association, successor to The First National Bank of Chicago, as Issuing and
Paying Agent (the "Notes") through the Dealer.

         Certain terms used in this Agreement are defined in Section 6 hereof.

         The Addendum to this Agreement, and any Annexes or Exhibits described
in this Agreement or such Addendum, are hereby incorporated into this Agreement
and made fully a part hereof.

Section 1.        Offers, Sales and Resales of Notes.

         1.1      While (i) the Issuer has and shall have no obligation to sell
the Notes to the Dealer or to permit the Dealer to arrange any sale of the Notes
for the account of the Issuer, and (ii) the Dealer has and shall have no
obligation to purchase the Notes from the Issuer or to arrange any sale of the
Notes for the account of the Issuer, the parties hereto agree that in any case
where the Dealer purchases Notes from the Issuer, or arranges for the sale of
Notes by the Issuer, such Notes will be purchased and sold in reliance on the
representations, warranties, covenants and agreements of the parties contained
herein or made pursuant hereto and on the terms and conditions and in the manner
provided herein.

         1.2      So long as this Agreement shall remain in effect, and in
addition to the limitations contained in Section 1.7 hereof, the Issuer shall
not, without the consent of the Dealer (which consent shall not be unreasonably
withheld), offer, solicit or accept offers to purchase, or sell, any Notes
except (a) in transactions with one or more dealers which may from time to time
after the date hereof become dealers with respect to the Notes by executing with
the Issuer one or more agreements which contain provisions substantially
identical to Section I of this Agreement, of which the Issuer hereby undertakes
to provide the Dealer prompt notice or (b) in transactions with the other
dealers listed on the Addendum hereto, which are executing agreements with the
Issuer which contain provisions substantially identical to Section 1 of this
Agreement contemporaneously herewith. In no event shall the Issuer offer,
solicit or accept offers to purchase, or sell, any Notes directly on its own
behalf in transactions with persons other than broker-dealers as specifically
permitted in this Section 1.2.

         1.3      The Notes shall be in a minimum denomination or minimum
amount, whichever is applicable, of $250,000 or integral multiples of $1,000 in
excess thereof, will bear such interest rates, if interest bearing, or will be
sold at such discount from their face amounts, as shall be agreed upon by the
Dealer and the Issuer, shall have a maturity not exceeding 270 days from the
date of issuance (exclusive of days of grace) and shall not contain any
provision for extension, renewal or automatic "rollover."

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         1.4      The authentication, delivery and payment of the Notes shall be
effected in accordance with the Issuing and Paying Agency Agreement and the
Notes shall be either individual bearer physical certificates or represented by
book-entry Notes registered in the name of DTC or its nominee in the form or
forms annexed to the Issuing and Paying Agency Agreement.

         1.5      If the Issuer and the Dealer shall agree on the terms of the
purchase of any Note by the Dealer or the sale of any Note arranged by the
Dealer (including, but not limited to, agreement with respect to the date of
issue, purchase price, principal amount, maturity and interest rate (in the case
of interest-bearing Notes) or discount thereof (in the case of Notes issued on a
discount basis), and appropriate compensation for the Dealer's services
hereunder) pursuant to this Agreement, the Issuer shall cause such Note to be
issued and delivered in accordance with the terms of the Issuing and Paying
Agency Agreement and payment for such Note shall be made by the purchaser
thereof, either directly or through the Dealer, to the Issuer. Except as
otherwise agreed, in the event that the Dealer is acting as an agent and a
purchaser shall either fail to accept delivery of or make payment for a Note on
the date fixed for settlement, the Dealer shall promptly notify the Issuer, and
if the Dealer has theretofore paid the Issuer for the Note, the Issuer will
promptly return such funds to the Dealer against its return of the Note to the
Issuer, in the case of a certificated Note, and upon notice of such failure in
the case of a book-entry Note. If such failure occurred for any reason other
than default by the Dealer, the Issuer shall reimburse the Dealer on an
equitable basis for the Dealer's loss of the use of such funds for the period
such funds were credited to the Issuer's account.

         1.6      The Dealer and the Issuer hereby establish and agree to
observe the following procedures in connection with offers, sales and subsequent
resales or other transfers of the Notes:

                  (a)      Offers and sales of the Notes by or through the
         Dealer shall be made only to the following types of investors: (i)
         investors reasonably believed by the Dealer to be Institutional
         Accredited Investors, (ii) non-bank fiduciaries or agents that will be
         purchasing Notes for one or more accounts, each of which is an
         Institutional Accredited Investor, and (iii) Qualified Institutional
         Buyers.

                  (b)      Resales and other transfers of the Notes by the
         holders thereof shall be made only in accordance with the restrictions
         in the legends described in clause (e) below. No general solicitation
         or general advertising shall be used in connection with the offering of
         the Notes. Without limiting the generality of the foregoing, without
         the prior written approval of Dealer, the Issuer shall not issue any
         press release or place or publish any "tombstone" or other
         advertisement relating to the Notes.

                  (c)      No general solicitation or general advertising shall
         be used in connection with the offering of the Notes. Without limiting
         the generality of the foregoing, without the prior written approval of
         Dealer, the Issuer shall not issue any press release or place or
         publish any "tombstone" or other advertisement relating to the Notes.

                  (d)      No sale of Notes to any one purchaser shall be for
         less than $250,000 principal or face

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         amount, and no Note shall be issued in a smaller principal or face
         amount. If the purchaser is a non-bank fiduciary acting on behalf of
         others, each person for whom such purchaser is acting must purchase at
         least $250,000 principal or face amount of Notes.

                  (e)      Offers and sales of the Notes by the Issuer through
         the Dealer acting as agent for the Issuer shall be made in accordance
         with Rule 506 under the Securities Act, and shall be subject to the
         restrictions described in the legend appearing on Exhibit A hereto. A
         legend substantially to the effect of such Exhibit A shall appear as
         part of the Private Placement Memorandum used in connection with offers
         and sales of Notes hereunder, as well as on each Note offered and sold
         pursuant to this Agreement.

                  (f)      Dealer shall furnish or shall have furnished to each
         purchaser of Notes being sold to an ultimate purchaser for the first
         time a copy of the then current Private Placement Memorandum unless
         such purchaser has previously received a copy of the Private Placement
         Memorandum as then in effect. The Private Placement Memorandum shall
         expressly state that any person to whom Notes are offered shall have an
         opportunity to ask questions of, and receive information from, the
         Issuer and the Dealer and shall provide the names, addresses and
         telephone numbers of the persons from whom information regarding the
         Issuer may be obtained.

                  (g)      The Issuer agrees, for the benefit of the Dealer and
         each of the holders and prospective purchasers from time to time of the
         Notes that, if at any time the Issuer shall not be subject to Section
         13 or 15(d) of the Exchange Act, the Issuer will furnish, upon request
         and at its expense, to the Dealer and to holders and prospective
         purchasers of Notes information required by Rule 144A(d)(4)(i) in
         compliance with Rule 144A(d).

                  (h)      In the event that any Note offered or to be offered
         by Dealer would be ineligible for resale under Rule 144A, the Issuer
         shall immediately notify Dealer (by telephone, confirmed in writing) of
         such fact and shall promptly prepare and deliver to Dealer an amendment
         or supplement to the Private Placement Memorandum describing the Notes
         that are ineligible, the reason for such ineligibility and any other
         relevant information relating thereto.

                  (i)      The Issuer represents that it is currently issuing
         commercial paper in the United States market in reliance upon, and in
         compliance with, the exemption provided by Section 3(a)(3) of the
         Securities Act. In that connection, the Issuer agrees that: (a) the
         proceeds from the sale of the Notes will be segregated from the
         proceeds of the sale of any such commercial paper by being placed in a
         separate account; and (b) the Issuer has instituted appropriate
         corporate procedures to ensure that the offers and sales of notes
         issued by the Issuer pursuant to the Section 3(a)(3) exemption are not
         integrated with offerings and sales of Notes hereunder.

                  (j)      The Issuer hereby agrees that, not later than 15 days
         after the first sale of Notes as contemplated by this Agreement, it
         will file with the SEC a notice on Form D in accordance with Rule 503
         under the Securities Act and that it will thereafter file such
         amendments to such notice as Rule 503 may require.

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         1.7      The Issuer hereby represents and warrants to the Dealer, in
connection with offers, sales and resales of Notes, as follows:

                  (a)      Issuer hereby confirms to the Dealer that (except as
         permitted by Section 1.6(i)) within the preceding six months neither
         the Issuer nor any person other than the Dealer or the other dealers
         referred to in Section 1.2 hereof acting on behalf of the Issuer has
         offered or sold any Notes, or any substantially similar security of the
         Issuer (including, without limitation, medium-term notes issued by the
         Issuer), to, or solicited offers to buy any such security from, any
         person other than the Dealer or the other dealers referred to in
         Section 1.2 hereof. The Issuer also agrees that, as long as the Notes
         are being offered for sale by the Dealer and the other dealers referred
         to in Section 1.2 hereof as contemplated hereby and until at least six
         months after the offer of Notes hereunder has been terminated, neither
         the Issuer nor any person other than the Dealer or the other dealers
         referred to in Section 1.2 hereof (except as contemplated by Section
         1.2 hereof) will offer the Notes or any substantially similar security
         of the Issuer for sale to, or solicit offers to buy any such security
         from, any person other than the Dealer and the other dealers referred
         to in Section 1.2 hereof, it being understood that such agreement is
         made with a view to bringing the offer and sale of the Notes within the
         exemption provided by Section 4(2) of the Securities Act and Rule 506
         thereunder and shall survive any termination of this Agreement. The
         Issuer hereby represents and warrants that it has not taken or omitted
         to take, and will not take or omit to take, any action that would cause
         the offering and sale of Notes hereunder to be integrated with any
         other offering of securities, whether such offering is made by the
         Issuer or some other party or parties.

                  (b)      In the event that the Dealer purchases Notes as
         principal and does not resell such Notes on the day of such purchase,
         to the extent necessary to comply with Regulation T and the
         interpretations thereunder, the Dealer will sell such Notes only to
         offerees it reasonably believes to be QIBs or to QIBs it reasonably
         believes are acting for other QIBs, in each case in accordance with
         Rule 144A.

Section 2.        Representations and Warranties of Issuer.

The Issuer represents and warrants that:

         2.1      The Issuer is a corporation duly incorporated, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation and has all the requisite corporate power and authority to
execute, deliver and perform its obligations under the Notes, this Agreement and
the Issuing and Paying Agency Agreement.

         2.2      This Agreement and the Issuing and Paying Agency Agreement
have been duly authorized, executed and delivered by the Issuer and constitute
legal, valid and binding obligations of the Issuer enforceable against the
Issuer in accordance with their terms subject to applicable bankruptcy,
insolvency and similar laws affecting creditors' rights generally, and subject,
as to enforceability, to general principles of equity (regardless of whether
enforcement is

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sought in a proceeding in equity or at law) and except insofar as rights to
indemnifications and contributions may be limited by applicable law.

         2.3      The Notes have been duly authorized, and when issued and
delivered as provided in the Issuing and Paying Agency Agreement, will be duly
and validly issued and delivered and will constitute legal, valid and binding
obligations of the Issuer enforceable against the Issuer in accordance with
their terms subject to applicable bankruptcy, insolvency and similar laws
affecting creditors' rights generally, and subject, as to enforceability, to
general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).

         2.4      The offer and sale of Notes in the manner contemplated hereby
do not require registration of the Notes under the Securities Act, pursuant to
the exemption from registration contained in Section 4(2) thereof and Regulation
D thereunder, and no indenture in respect of the Notes is required to be
qualified under the Trust Indenture Act of 1939, as amended.

         2.5      The Notes will rank at least pari passu with all other
unsecured and unsubordinated indebtedness of the Issuer.

         2.6      Except as provided in Section 1.6(j), no consent or action of,
or filing or registration with, any governmental or public regulatory body or
authority, including the SEC, is required to be obtained by the Issuer to
authorize, or is otherwise required to be obtained by the Issuer in connection
with the execution, delivery or performance of, this Agreement, the Notes or the
Issuing and Paying Agency Agreement, except as may be required by the securities
or Blue Sky laws of the various states in connection with the offer and sale of
the Notes.

         2.7      Neither the execution and delivery of this Agreement and the
Issuing and Paying Agency Agreement, nor the issuance and delivery of the Notes
in accordance with the Issuing and Paying Agency Agreement, nor the fulfillment
of or compliance with the terms and provisions hereof or thereof by the Issuer,
will (i) result in the creation or imposition of any mortgage, lien, charge or
encumbrance of any nature whatsoever upon any of the properties or assets of the
Issuer, or (ii) violate or result in a breach or an event of default under any
of the terms of the Issuer's charter documents or by-laws, any contract or
instrument to which the Issuer is a party or by which it or its property is
bound and that is material to the Issuer, or any law or regulation, or any
order, writ, injunction or decree of any court or government instrumentality, to
which the Issuer is subject or by which it or its property is bound, which
violation, breach or event of default might reasonably be expected to have a
material adverse effect on the earnings, business or operations of the Issuer or
the ability of the Issuer to perform its obligations under this Agreement, the
Notes or the Issuing and Paying Agency Agreement.

         2.8      Except as disclosed in the Company Information, there is no
litigation or governmental proceeding pending, or to the knowledge of the Issuer
threatened, against or affecting the Issuer or any of its subsidiaries which
might reasonably be expected to have a material adverse effect on the earnings,
business or operations of the Issuer or the ability of the Issuer to perform its
obligations under this Agreement, the Notes or the Issuing and Paying Agency
Agreement.

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         2.9      The Issuer is not an "investment company" or an entity
"controlled" by an "investment company" within the meaning of the Investment
Company Act of 1940, as amended.

         2.10     Neither the Private Placement Memorandum nor the Company
Information contains any untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading, provided that the Issuer makes no representation or warranty
relating to Dealer Information.

         2.11     Each (a) issuance of Notes by the Issuer hereunder and (b)
amendment or supplement of the Private Placement Memorandum shall be deemed a
representation and warranty by the Issuer to the Dealer, as of the date thereof,
that, both before and after giving effect to such issuance and after giving
effect to such amendment or supplement, (i) the representations and warranties
given by the Issuer set forth above in this Section 2 remain true and correct on
and as of such date as if made on and as of such date, (ii) in the case of an
issuance of Notes, the Notes being issued on such date have been duly and
validly issued and constitute legal, valid and binding obligations of the
Issuer, enforceable against the Issuer in accordance with their terms, subject
to applicable bankruptcy, insolvency and similar laws affecting creditors'
rights generally and subject, as to enforceability, to general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity or
at law) and (iii) in the case of an issuance of Notes, since the date of the
most recent Private Placement Memorandum, there has been no material adverse
change in the earnings, business or operations of the Issuer which has not been
disclosed in the Company Information.

Section 3.        Covenants and Agreements of Issuer.

The Issuer covenants and agrees that:

         3.1      The Issuer will give the Dealer prompt notice (but in any
event prior to any subsequent issuance of Notes hereunder) of any amendment to,
modification of, or waiver with respect to, the Notes, the Issuing and Paying
Agency Agreement, including a complete copy of any such amendment, modification
or waiver.

         3.2      The Issuer shall, whenever there shall occur any change in the
Issuer's earnings, business or operations that would be material to holders of
the Notes or potential holder of the Notes (including any downgrading or receipt
of any notice of intended or potential downgrading or any review for potential
change in the rating accorded any of the Issuer's securities by any nationally
recognized statistical rating organization which has published a rating of the
Notes), promptly, and in any event prior to any subsequent issuance of Notes
hereunder, notify the Dealer (by telephone, confirmed in writing) of such
change, development, or occurrence.

         3.3      The Issuer shall from time to time furnish to the Dealer such
information as the Dealer may reasonably request, including, without limitation,
any press releases or material provided by the Issuer to any national securities
exchange or rating agency, regarding the due authorization and execution of the
Notes and the Issuer's ability to pay the Notes as they mature.

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         3.4      The Issuer will take all such action as the Dealer may
reasonably request to ensure that each offer and each sale of the Notes will
comply with any applicable state Blue Sky laws; provided , that the Issuer shall
not be obligated to file any general consent to service of process or to qualify
as a foreign corporation in any jurisdiction in which it is not so qualified or
subject itself to taxation in respect of doing business in any jurisdiction in
which it is not otherwise so subject.

         3.5      The Issuer shall not issue Notes hereunder until the Dealer
shall have received (a) an opinion of counsel to the Issuer, addressed to the
Dealer, satisfactory in form and substance to the Dealer, (b) a copy of the
executed Issuing and Paying Agency Agreement as then in effect, (c) a copy of
resolutions adopted by the Board of Directors of the Issuer, satisfactory in
form and substance to the Dealer and certified by the Secretary or similar
officer of the Issuer, authorizing execution and delivery by the Issuer of this
Agreement the Issuing and Paying Agency Agreement and the Notes and consummation
by the Issuer of the transactions contemplated hereby and thereby, (d) prior to
the issuance of any Notes represented by a book-entry note registered in the
name of DTC or its nominee, a copy of the executed Letter of Representations
among the Issuer, the Issuing and Paying Agent and DTC and (e) such other
certificates, opinions, letters and documents as the Dealer shall have
reasonably requested.

         3.6      The Issuer shall reimburse the Dealer for all of the Dealer's
reasonable out-of-pocket expenses actually incurred by the Dealer related to
this Agreement, including expenses incurred in connection with its preparation
and negotiation, and the transactions contemplated hereby (including, but not
limited to, the printing and distribution of the Private Placement Memorandum),
and, if applicable, for the reasonable fees and out-of-pocket expenses of the
Dealer's counsel, not to exceed $5,000.

Section 4.        Disclosure

         4.1      The Private Placement Memorandum and its contents (other than
the Dealer Information) shall be the sole responsibility of the Issuer. The
Private Placement Memorandum shall contain a statement expressly offering an
opportunity for each prospective purchaser to ask questions of, and receive
answers from, the Issuer concerning the offering of Notes and to obtain relevant
additional information which the Issuer possesses or can acquire without
unreasonable effort or expense.

         4.2      The Issuer agrees promptly to furnish the Dealer the Company
Information as it becomes publicly available.

         4.3      (a)      The Issuer further agrees, if the Issuer has any
         Notes outstanding or in connection with any proposed issuance of Notes
         by the Issuer, to notify the Dealer promptly upon the occurrence of any
         event relating to or affecting the Issuer that would cause the Company
         Information then in existence to include an untrue statement of
         material fact or to omit to state a material fact necessary in order to
         make the statements contained therein, in light of the circumstances
         under which they are made, not misleading.

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                  (b)      In the event that the Issuer gives the Dealer notice
         pursuant to Section 4.3(a) and the Dealer notifies the Issuer that it
         then has Notes it is holding in inventory, (i) the Issuer agrees
         promptly to supplement or amend the Private Placement Memorandum so
         that such Private Placement Memorandum, as amended or supplemented,
         shall not contain an untrue statement of a material fact or omit to
         state a material fact necessary in order to make the statements
         therein, in light of the circumstances under which they were made, not
         misleading, and the Issuer shall make such supplement or amendment
         available to the Dealer or (ii) if the Issuer chooses not to promptly
         amend or supplement the Private Placement Memorandum, the Dealer shall
         have the right to resell to the Issuer any such Notes held in inventory
         at a price equal to the face amount thereof discounted on a ratable
         basis based on the Issuer's market rate reflecting the remaining period
         until maturity in relation to the original term.

                  (c)      In the event that (i) the Issuer gives the Dealer
         notice pursuant to Section 4.3(a) and (ii) the Dealer does not notify
         the Issuer that it is then holding Notes in inventory and (iii) the
         Issuer chooses not to promptly amend or supplement the Private
         Placement Memorandum in the manner described in clause (b) above, then
         all solicitations and sales of Notes shall be suspended until such time
         as the Issuer has so amended or supplemented the Private Placement
         Memorandum, and made such amendment or supplement available to the
         Dealer.

Section 5.        Indemnification and Contribution.

         5.1      The Issuer will indemnify and hold harmless the Dealer, each
individual, corporation, partnership, trust, association or other entity
controlling the Dealer, any affiliate of the Dealer or any such controlling
entity and their respective directors, officers, employees, partners,
incorporators, shareholders, servants, trustees and agents (hereinafter the
"Dealer Indemnitees") against any and all liabilities, penalties, suits, causes
of action, losses, damages, claims, costs and expenses (including, without
limitation, fees and disbursements of counsel) or judgments of whatever kind or
nature (each a "Claim"), imposed upon, incurred by or asserted against the
Dealer Indemnitees arising out of or based upon (i) any allegation that the
Private Placement Memorandum or the Company Information included (as of any
relevant time) or includes an untrue statement of a material fact or omitted (as
of any relevant time) or omits to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading or (ii) arising out of or based upon the breach by the Issuer of
any agreement, covenant or representation made in or pursuant to this Agreement.
This indemnification shall not apply to the extent that the Claim arises out of
or is based upon Dealer Information or the gross negligence or willful
misconduct of any Dealer Indemnitee.

         5.2      The Dealer will indemnify and hold harmless the Issuer, each
individual, corporation, partnership, trust, association or other entity
controlling the Issuer, any affiliate of the Issuer or any such controlling
entity and their respective directors, officers, employees, partners,
incorporators, shareholders, servants, trustees and agents (hereinafter the
"Issuer Indemnitees") against any and all liabilities, penalties, suits, causes
of action, losses, damages, claims, costs and expenses (including, without
limitation, fees and disbursements of counsel) or

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judgments of whatever kind or nature (each a "Claim"), imposed upon, incurred by
or asserted against the Issuer Indemnitees arising out of or based upon any
allegation that the Private Placement Memorandum included (as of any relevant
time) or includes an untrue statement of a material fact or omitted (as of any
relevant time) or omits to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, in each case, to the extent, but only to the extent, that such
untrue statement or alleged untrue statement, or omission or alleged omission,
relates to Dealer Information.

         5.3      Provisions relating to claims made for indemnification under
this Section 5 are set forth on Exhibit B to this Agreement.

         5.4      In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in this Section 5 is
held to be unavailable or insufficient to hold harmless the Indemnitees,
although applicable in accordance with the terms of this Section 5, the Issuer
shall contribute to the aggregate costs incurred by the Dealer in connection
with any Claim in the proportion of the respective economic interests of the
Issuer and the Dealer; provided , however, that such contribution by the Issuer
shall be in an amount such that the aggregate costs incurred by the Dealer do
not exceed the aggregate of the commissions and fees earned by the Dealer
hereunder with respect to the issue or issues of Notes to which such Claim
relates. The respective economic interests shall be calculated by reference to
the aggregate proceeds to the Issuer of the Notes issued hereunder and the
aggregate commissions and fees earned by the Dealer hereunder.

Section 6.        Definitions.

         6.1      "Claim" shall have the meaning set forth in Section 5.1.

         6.2      "Company Information" at any given time shall mean the Private
Placement Memorandum (other than the Dealer Information) together with, to the
extent applicable, (i) the Issuer's most recent report on Form 10-K filed with
the SEC and each report on Form 10-Q or 8-K filed by the Issuer with the SEC
since the most recent Form 10-K, (ii) the Issuer's most recent annual audited
financial statements and each interim financial statement or report prepared
subsequent thereto, if not included in item (i) above, (iii) the Issuer's other
publicly available reports, including, but not limited to, any publicly
available filings or reports provided to its shareholders, (iv) any other
information or disclosure prepared pursuant to Section 4.3 hereof and (v) any
information prepared or approved by the Issuer in writing expressly for
dissemination to investors or potential investors in the Notes.

         6.3      "Dealer Information" shall mean material concerning the Dealer
and provided by the Dealer in writing expressly for inclusion in the Private
Placement Memorandum.

         6.4      "DTC" shall mean The Depository Trust Company.

         6.5      "Exchange Act" shall mean the U.S. Securities Exchange Act of
1934, as amended.

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         6.6      "Indemnitee" shall have the meaning set forth in Section 5.1.

         6.7      "Institutional Accredited Investor" shall mean an
institutional investor that is an accredited investor within the meaning of Rule
501 under the Securities Act and that has such knowledge and experience in
financial and business matters that it is capable of evaluating and bearing the
economic risk of an investment in the Notes, including, but not limited to, a
bank, as defined in Section 3(a)(2) of the Securities Act, or a savings and loan
association or other institution, as defined in Section 3(a)(5)(A) of the
Securities Act, whether acting in its individual or fiduciary capacity.

         6.8      "Issuing and Paying Agency Agreement" shall mean the issuing
and paying agency agreement described on the cover page of this Agreement, as
such agreement may be amended or supplemented from time to time.

         6.9      "Issuing and Paying Agent" shall mean the party designated as
such on the cover page of this Agreement, as issuing and paying agent under the
Issuing and Paying Agency Agreement.

         6.10     "Non-bank fiduciary or agent "shall mean a fiduciary or agent
other than (a) a bank, as defined in Section 3(a)(2) of the Securities Act, or
(b) a savings and loan association, as defined in Section 3(a)(5)(A) of the
Securities Act.

         6.11     "Private Placement Memorandum" shall mean offering materials
prepared in accordance with Section 4 (including materials referred to therein
or incorporated by reference therein) provided to purchasers and prospective
purchasers of the Notes, and shall include amendments and supplements thereto
which may be prepared from time to time in accordance with this Agreement (other
than any amendment or supplement that has been completely superseded by a later
amendment or supplement).

         6.12     "Qualified Institutional Buyer" shall have the meaning
assigned to that term in Rule 144A under the Securities Act.

         6.13     "Regulation D" shall mean Regulation D (Rules 501 et seq.)
under the Securities Act.

         6.14     "Rule 144A" shall mean Rule 144A under the Securities Act.

         6.15     "SEC" shall mean the U.S. Securities and Exchange Commission.

         6.16     "Securities Act" shall mean the U.S. Securities Act of 1933,
as amended.

Section 7.        General

         7.1      Unless otherwise expressly provided herein, all notices under
this Agreement to parties hereto shall be in writing and shall be effective when
received at the address of the respective party set forth in the Addendum to
this Agreement.

                                       11
<PAGE>   12

         7.2      This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its
conflict of laws provisions.

         7.3      The Issuer agrees that any suit, action or proceeding brought
by the Issuer against the Dealer in connection with or arising out of this
Agreement or the Notes or the offer and sale of the Notes shall be brought
solely in the United States federal courts located in the borough of Manhattan
or the courts of the State of New York located in the Borough of Manhattan. EACH
OF THE DEALER AND THE ISSUER WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY SUIT,
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

         7.4      This Agreement may be terminated, at any time, by the Issuer,
upon one business day's prior notice to such effect to the Dealer, or by the
Dealer upon one business day's prior notice to such effect to the Issuer. Any
such termination, however, shall not affect the obligations of the Issuer under
Sections 3.7, 5 and 7.3 hereof, the obligations of the Dealer under Sections 5
and 7.3, or the respective representations, warranties, agreements, covenants,
rights or responsibilities of the parties made or arising prior to the
termination of this Agreement.

         7.5      This Agreement is not assignable by either party hereto
without the written consent of the other party; provided, however, that the
Dealer may assign its rights and obligations under this Agreement to any
affiliate.

         7.6      This Agreement may be signed in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

                                       12
<PAGE>   13

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date and year first above written.

                                        THE HOME DEPOT, INC.,
                                        AS ISSUER

                                        By: /s/ Carol B. Tome
                                            --------------------------------
                                        Name: Carol B. Tome
                                        Title: SVP-Finance/Treasurer

                                        CREDIT SUISSE FIRST BOSTON
                                        CORPORATION, AS DEALER

                                        By: /s/ Helena Willner
                                            --------------------------------
                                        Name: Helena Willner
                                        Title: Director

                                       13
<PAGE>   14

                                          ADDENDUM

1.       As of the date hereof, there are no other dealers as referred to in
         clause (b) of Section 1.2 of the Agreement.

2.       The addresses of the respective parties for purposes of notices under
         Section 7.1 are as follows:

         For the Issuer:              The Home Depot, Inc.

                  Address:            2455 Paces Ferry Road
                                      Atlanta, GA 30339-4024
                  Attention:          Rebecca Flick
                  Telephone number:   770-384-2657
                  Fax number:         770-384-4929

         For the Dealer:              Credit Suisse First Boston Corporation

                  Address:            11 Madison Avenue
                                      New York, N.Y. 10010
                  Attention:          Short & Medium Term Finance
                  Telephone number:   212-325-7198
                  Fax number:         212-325-8183

                                       14
<PAGE>   15

                                                                       EXHIBIT A

                               FORM OF LEGEND FOR
                     PRIVATE PLACEMENT MEMORANDUM AND NOTES

              THE NOTES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
              1933, AS AMENDED (THE "ACT"), OR ANY OTHER APPLICABLE SECURITIES
              LAW, AND OFFERS AND SALES THEREOF MAY BE MADE ONLY IN COMPLIANCE
              WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
              THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. BY ITS
              ACCEPTANCE OF A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT
              THAT IT HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS
              RELATING TO THE ISSUER AND THE NOTES, THAT IT IS NOT ACQUIRING
              SUCH NOTE WITH A VIEW TO ANY DISTRIBUTION THEREOF AND THAT IT IS
              EITHER (A) AN INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED
              INVESTOR WITHIN THE MEANING OF RULE 501(a) UNDER THE ACT AND THAT
              EITHER IS PURCHASING NOTES FOR ITS OWN ACCOUNT, IS A U.S. BANK (AS
              DEFINED IN SECTION 3(a)(2) OF THE ACT) OR A SAVINGS AND LOAN
              ASSOCIATION OR OTHER INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A)
              OF THE ACT) ACTING IN ITS INDIVIDUAL OR FIDUCIARY CAPACITY OR IS A
              FIDUCIARY OR AGENT (OTHER THAN A U.S. BANK OR SAVINGS AND LOAN
              ASSOCIATION) PURCHASING NOTES FOR ONE OR MORE ACCOUNTS EACH OF
              WHICH IS AN INSTITUTIONAL ACCREDITED INVESTOR (i) WHICH ITSELF
              POSSESSES SUCH KNOWLEDGE AND EXPERIENCE OR (ii) WITH RESPECT TO
              WHICH SUCH PURCHASER HAS SOLE INVESTMENT DISCRETION; OR (B) A
              QUALIFIED INSTITUTIONAL BUYER ("QIB") WITHIN THE MEANING OF RULE
              144A UNDER THE ACT WHICH IS ACQUIRING NOTES FOR ITS OWN ACCOUNT OR
              FOR ONE OR MORE ACCOUNTS, EACH OF WHICH IS A QIB AND WITH RESPECT
              TO EACH OF WHICH THE PURCHASER HAS SOLE INVESTMENT DISCRETION; AND
              THE PURCHASER ACKNOWLEDGES THAT IT IS AWARE THAT THE SELLER MAY
              RELY UPON THE EXEMPTION FROM THE REGISTRATION PROVISIONS OF
              SECTION 5 OF THE ACT PROVIDED BY RULE 144A. BY ITS ACCEPTANCE OF A
              NOTE, THE PURCHASER THEREOF ALSO SHALL ALSO BE DEEMED TO AGREE
              THAT ANY RESALE OR OTHER TRANSFER THEREOF WILL BE MADE ONLY (A) IN
              A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE ACT, EITHER (1)
              TO THE ISSUER OR TO CREDIT SUISSE FIRST BOSTON CORPORATION OR
              ANOTHER PERSON DESIGNATED BY THE ISSUER AS A PLACEMENT AGENT FOR
              THE NOTES (COLLECTIVELY, THE "PLACEMENT AGENTS"), NONE OF WHICH
              SHALL HAVE ANY OBLIGATION TO ACQUIRE SUCH NOTE, (2) THROUGH A
              PLACEMENT AGENT TO AN INSTITUTIONAL ACCREDITED INVESTOR OR A QIB,
              OR (3) TO A QIB IN A TRANSACTION THAT MEETS THE REQUIREMENTS OF
              RULE 144A AND (B) IN MINIMUM AMOUNTS OF $250,000.

                                       15
<PAGE>   16

                                                                       EXHIBIT B

                           FURTHER PROVISIONS RELATING
                               TO INDEMNIFICATION

         (a)      The Issuer agrees to reimburse each Indemnitee for all
expenses (including reasonable fees and disbursements of internal and external
counsel) as they are incurred by it in connection with investigating or
defending any loss, claim, damage, liability or action in respect of which
indemnification may be sought under Section 5 of the Agreement (whether or not
it is a party to any such proceedings).

         (b)      Promptly after receipt by an Indemnitee of notice of the
existence of a Claim, such Indemnitee will, if a claim in respect thereof is to
be made against the Issuer, notify the Issuer in writing of the existence
thereof; provided that (i) the omission so to notify the Issuer will not relieve
it from any liability which it may have hereunder unless and except to the
extent it did not otherwise learn of such Claim and such failure results in the
forfeiture by the Issuer of substantial rights and defenses, and (ii) the
omission so to notify the Issuer will not relieve it from liability which it may
have to an Indemnitee otherwise than on account of this indemnity agreement. In
case any such Claim is made against any Indemnitee and it notifies the Issuer of
the existence thereof, the Issuer will be entitled to participate therein, and
to the extent that it may elect by written notice delivered to the Indemnitee,
to assume the defense thereof, with counsel reasonably satisfactory to such
Indemnitee; provided that if the defendants in any such Claim include both the
Indemnitee and the Issuer and the Indemnitee shall have concluded that there may
be legal defenses available to it which are different from or additional to
those available to the Issuer, the Issuer shall not have the right to direct the
defense of such Claim on behalf of such Indemnitee, and the Indemnitee shall
have the right to select separate counsel to assert such legal defenses on
behalf of such Indemnitee. Upon receipt of notice from the Issuer to such
Indemnitee of the Issuer's election so to assume the defense of such Claim and
approval by the Indemnitee of counsel, the Issuer will not be liable to such
Indemnitee for expenses incurred thereafter by the Indemnitee in connection with
the defense thereof (other than reasonable costs of investigation) unless (i)
the Indemnitee shall have employed separate counsel in connection with the
assertion of legal defenses in accordance with the proviso to the next preceding
sentence (it being understood, however, that the Issuer shall not be liable for
the expenses of more than one separate counsel (in addition to any local counsel
in the jurisdiction in which any Claim is brought), approved by the Dealer,
representing the Indemnitee who is party to such Claim), (ii) the Issuer shall
not have employed counsel reasonably satisfactory to the Indemnitee to represent
the Indemnitee within a reasonable time after notice of existence of the Claim
or (iii) the Issuer has authorized in writing the employment of counsel for the
Indemnitee. The indemnity, reimbursement and contribution obligations of the
Issuer hereunder shall be in addition to any other liability the Issuer may
otherwise have to an Indemnitee and shall be binding upon and inure to the
benefit of any successors, assigns, heirs and personal representatives of the
Issuer and any Indemnitee. The Issuer agrees that without the Dealer's prior
written consent, it will not settle, compromise or consent to the entry of any
judgment in any Claim in respect of which indemnification may be sought under
the indemnification provision of the Agreement (whether or not the Dealer or any
other Indemnitee is an actual or potential party to such Claim), unless such
settlement, compromise or consent includes an unconditional release of each
Indemnitee from all liability arising out of such Claim.

                                       16<PAGE>   1
                                                                   EXHIBIT 10.20

                              THE HOME DEPOT, INC.

               NON-QUALIFIED STOCK OPTION AND DEFERRED STOCK UNITS
                               PLAN AND AGREEMENT

         THIS NON-QUALIFIED STOCK OPTION AND DEFERRED STOCK UNITS PLAN AND
AGREEMENT evidences that, subject to the following terms and conditions, on
December 4, 2000 (the "Grant Date"), The Home Depot, Inc., a Delaware
Corporation, (the "Company") granted to Robert L. Nardelli (the "Executive") the
following: (i) a non-qualified stock option (the "Option"), for the purchase of
two million five hundred thousand (2,500,000) shares of the Company's Common
Stock, $.05 par value ("Common Stock"), at an option price of forty dollars and
seventy-five cents ($40.75) per share (the "Option Price"), and (ii) an award of
deferred stock units corresponding to seven hundred fifty thousand (750,000)
shares of Common Stock (each a "Deferred Stock Unit").

         1.       DEFINITIONS. As used herein, the following terms shall be
defined as set forth below:

         (a)      "CAUSE" shall mean that Executive has been convicted of a
felony involving theft or moral turpitude, or engaged in conduct that
constitutes willful gross neglect or willful gross misconduct with respect to
Executive's employment duties which results in material economic harm to the
Company; provided, however, that for purposes of determining whether conduct
constitutes willful gross misconduct, no act on Executive's part shall be
considered "willful" unless it is done by Executive in bad faith and without
reasonable belief that his action was in the best interests of the Company.
Notwithstanding the foregoing, the Company may not terminate Executive's
employment for Cause unless (1) a determination that Cause exists is made and
approved by a majority of the Company's Board of Directors (the "Board"), (2)
Executive is given at least thirty (30) days' written notice of the Board
meeting called to make such determination, and (3) Executive and his legal
counsel are given the opportunity to address such meeting.

         (b)      A "CHANGE IN CONTROL" shall be deemed to have occurred if:

                  (1)      Any "person" (as defined in Section 13(d) and 14(d)
                           of the Securities Exchange Act of 1934, as amended
                           (the "Exchange Act"), excluding for this purpose, (A)
                           the Company or any subsidiary of the Company, or (B)
                           any employee benefit plan of the Company or any
                           subsidiary of the Company, or any person or entity
                           organized, appointed or established by the Company
                           for or pursuant to the terms of any such plan which
                           acquires beneficial ownership of voting securities of
                           the Company, is or becomes the "beneficial owner" (as
                           defined in Rule 13d-3 under the Exchange Act),
                           directly or indirectly, of securities of the Company
                           representing more than twenty percent (20%) of the
                           combined voting power of the Company's then
                           outstanding securities; provided, however, that no
                           Change in Control will be deemed to have occurred as
                           a result of a change in ownership

<PAGE>   2
                          percentage resulting solely from an acquisition of
                          securities by the Company; or

                  (2)     During any two (2) consecutive years (not including
                          any period beginning prior to December 3, 2000),
                          individuals who at the beginning of such two (2) year
                          period constitute the Board and any new director
                          (except for a director designated by a person who has
                          entered into an agreement with the Company to effect a
                          transaction described elsewhere in this definition of
                          Change in Control) whose election by the Board or
                          nomination for election by the Company's stockholders
                          was approved by a vote of at least two-thirds of the
                          directors then still in office who either were
                          directors at the beginning of the period or whose
                          election or nomination for election was previously so
                          approved cease for any reason to constitute at least a
                          majority of the Board; or

                  (3)     Consummation of a reorganization, merger or
                          consolidation or sale of the Company or other
                          disposition of all or substantially all of the assets
                          of the Company (a "Business Combination"), in each
                          case, unless, following such Business Combination, all
                          or substantially all of the individuals and entities
                          who were the beneficial owners of outstanding voting
                          securities of the Company immediately prior to such
                          Business Combination beneficially own, directly or
                          indirectly, more than fifty percent (50%) of the
                          combined voting power of the then outstanding voting
                          securities entitled to vote generally in the election
                          of directors, as the case may be, of the company
                          resulting from such Business Combination (including,
                          without limitation, a company which as a result of
                          such transaction owns the Company or all or
                          substantially all of the Company's assets either
                          directly or through one or more subsidiaries) in
                          substantially the same proportions as their ownership,
                          immediately prior to such Business Combination of the
                          outstanding voting securities of the Company; or

                  (4)     Approval by the stockholders of the Company of a
                          complete liquidation or dissolution of the Company.

         (c)      "COMMITTEE" means the Compensation Committee of the Board.

         (d)      "DISABILITY" means Executive's inability to substantially
perform his duties under that certain employment agreement entered into between
the Company and Executive effective as of December 4, 2000 (the "Employment
Agreement"), with reasonable accommodation, as evidenced by a certificate signed
either by a physician mutually acceptable to the Company and Executive or, if
the Company and Executive cannot agree upon a physician, by a physician selected
by agreement of a physician designated by the Company and a physician designated
by Executive; provided, however, that if such physicians cannot agree upon a
third physician within thirty (30) days, such third physician shall be
designated by the American Arbitration Association.

                                       2
<PAGE>   3

         (e)      "GOOD REASON" shall mean, without Executive's consent, (1) the
assignment to Executive of any duties inconsistent in any material respect with
Executive's position (including status, offices, titles and reporting
relationships), authority, duties or responsibilities as contemplated by Section
3 of the Employment Agreement, or any other action by the Company which results
in a significant diminution in such position, authority, duties or
responsibilities, excluding any isolated and inadvertent action not taken in bad
faith and which is remedied by the Company within ten (10) days after receipt of
notice thereof given by Executive; (2) any failure by the Company to comply with
any of the provisions of Sections 4 or 5 of the Employment Agreement other than
an isolated and inadvertent failure not committed in bad faith and which is
remedied by the Company within ten (10) days after receipt of notice thereof
given by Executive; (3) Executive being required to relocate to a principal
place of employment more than twenty-five (25) miles from his principal place of
employment with the Company as of December 4, 2000; (4) delivery by the Company
of a notice discontinuing the automatic extension provision of Section 2 of the
Employment Agreement; (5) failure by the Company to elect Executive to the
position of sole Chairman of the Board in compliance with the terms of Section
3.1 of the Employment Agreement; or (6) any purported termination by the Company
of Executive's employment otherwise than as expressly permitted by the
Employment Agreement.

         2.       STOCK OPTION.

         (a)      INITIAL EXERCISE. Twenty percent (20%) of the total number of
shares of Common Stock subject to the Option shall be exercisable immediately on
or after the Grant Date, and an additional twenty percent (20%) of the total
number of shares of Common Stock subject to the Option shall become exercisable
on or after the first, second, third and fourth anniversaries of the Grant Date
if Executive remains an employee of the Company through such dates, subject to
subparagraph (c) below. In addition, the Option shall be fully exercisable
immediately upon the occurrence of a Change in Control while Executive is
employed by the Company.

         (b)      EXPIRATION. The Option shall expire with respect to any share
of Common Stock on the tenth anniversary of the date that the Option first
becomes exercisable with respect to such share, unless the Option expires
earlier in accordance with subparagraph (c) below upon a termination of
employment by the Company for Cause or by Executive without Good Reason.

         (c)      TERMINATION OF EMPLOYMENT. If (1) the Company terminates
Executive's employment other than for Cause, (2) Executive, upon fifteen (15)
days' prior written notice, terminates his employment for Good Reason, or (3)
Executive's employment terminates due to death or Disability, the Option shall
immediately become fully exercisable as of the date of termination. In the event
of discharge by the Company for Cause or termination by Executive without Good
Reason, the Option shall immediately lapse and become null and void on and as of
the date of termination with respect to all shares of Common Stock subject to
the Option (whether or not then exercisable), unless a Change in Control has
occurred prior to such date of termination, in which case the Option shall
remain exercisable in accordance with subparagraph (b) above without regard to
Executive's termination.

         (d)      METHOD OF EXERCISE. Exercisable shares under the Option may be
exercised in whole or in part, with respect to whole shares of Common Stock,
from time to time until the tenth anniversary of the date that the Option first
becomes exercisable with respect to such

                                       3
<PAGE>   4

shares. Exercise shall be by notice of exercise to the Stock Administration
Department of the Company, specifying the number of shares to be purchased, the
Option Price of each share and the aggregate Option Price for all shares being
purchased under said notice. The notice shall be accompanied by payment of the
aggregate Option Price for the number of shares purchased and any applicable
withholding taxes. Such exercise (subject to Paragraph 5 below) shall be
effective upon the actual receipt of such payment and notice to the Company. The
aggregate Option Price for all shares purchased pursuant to an exercise of the
Option shall be paid by check payable to the order of the Company, shares of
Common Stock of the Company held by Executive for at least six (6) months, the
fair market value of which at the time of such exercise is equal to the
aggregate Option Price (or portion thereof to be paid with previously owned
Common Stock), or a combination of both. Payment of the Option Price in shares
of Common Stock shall be made by delivering properly endorsed stock certificates
to the Company or otherwise causing such Common Stock to be transferred to the
account of the Company, or constructively exchanging such shares by a procedure
established by the Committee so that Executive receives the excess of shares
exercised under the Option over the shares owned by Executive and shares
retained by the Company to satisfy withholding requirements. In addition, the
aggregate Option Price for all shares purchased pursuant to an exercise of the
Option may be paid from the proceeds of sale through a bank or broker on the
date of exercise of some or all of the shares to which the exercise relates.
There shall be furnished with each notice of the exercise of any portion of the
Option such documents as the Company in its discretion may deem necessary to
assure compliance with applicable rules and regulations of any stock exchange or
governmental authority. No rights or privileges of a stockholder of the Company
in respect to such shares issuable upon the exercise of any part of the Option
shall accrue to Executive unless and until certificates representing such shares
have been registered in Executive's name.

         3.       DEFERRED STOCK UNITS.

         (a)      VESTING SCHEDULE; ISSUANCE OF SHARES. One hundred fifty
thousand (150,000) Deferred Stock Units shall become vested on the Grant Date
and each of the first four anniversaries of the Grant Date (the "Vesting
Dates"); provided that, except as provided in subparagraph (c) below, Executive
is employed by the Company on the applicable Vesting Date. The Company shall
issue one share of Common Stock to Executive for each vested Deferred Stock Unit
on January 1 of the third calendar year following the calendar year in which the
Deferred Stock Unit vests (as illustrated in the schedule on Appendix A hereto),
unless (1) Executive has elected to defer the issuance of such shares pursuant
to subparagraph (b) below, or (2) Executive's employment terminates prior to
such date (in which case shares shall be issued as provided under subparagraph
(c) below). Each Deferred Stock Unit shall be cancelled upon the issuance of a
share of Common Stock with respect thereto.

         (b)      DEFERRAL. Executive may elect in writing on or before December
31 of the calendar year following the calendar year in which the Deferred Stock
Units vest (the "Latest Deferral Date"), to defer the issuance of shares of
Common Stock with respect to all or a part of such vested Deferred Stock Units.
Any such election shall specify the date of issuance for the deferred shares and
shall be irrevocable after the Latest Deferral Date.

                                       4
<PAGE>   5

         (c)      TERMINATION OF EMPLOYMENT; CHANGE IN CONTROL. If (1) the
Company terminates Executive's employment other than for Cause, (2) Executive,
upon fifteen (15) days' prior written notice, terminates his employment for Good
Reason, (3) Executive's employment terminates due to death or Disability, or (4)
a Change in Control occurs while Executive is employed by the Company, any
Deferred Stock Units that have not yet vested shall immediately vest. Unless
Executive has elected pursuant to subparagraph (b) above to defer issuance to a
later date, the Company shall issue to Executive, within ten (10) days after the
termination of Executive's employment for any reason, one share of Common Stock
for each outstanding vested Deferred Stock Unit, and each outstanding Deferred
Stock Unit shall be cancelled.

         (d)      LIMITATION OF RIGHTS; DIVIDEND EQUIVALENTS. Executive shall
not have any right to transfer any rights under the Deferred Stock Units except
as permitted by Paragraph 6 below, shall not have any rights of ownership in the
shares of Common Stock subject to the Deferred Stock Units prior to the issuance
of such shares, and shall not have any right to vote such shares. Executive,
however, shall receive a cash payment equal to the cash dividends paid on shares
underlying outstanding vested Deferred Stock Units when cash dividends are paid
to shareholders of the Company.

         4.       ADMINISTRATION. This Plan and Agreement shall be administered
by the Committee. The interpretation and construction by the Committee of any
provision herein and any determination by the Committee pursuant to any
provision of this Plan and Agreement shall be final and conclusive. No member of
the Committee shall be liable to any person for any such action taken or
determination made in good faith.

         5.       COMPLIANCE WITH LAWS. The Option shall not be exercised and no
related share certificates shall be delivered if in the sole discretion of the
Company: (a) such exercise or delivery would constitute a violation of any
provision of, or any regulation or order entered pursuant to, any law purporting
to regulate wages, salaries or compensation; or (b) any requisite approval,
consent, registration or other qualification of any stock exchange upon which
the securities of the Company may then be listed, the Securities and Exchange
Commission or other governmental authority having jurisdiction over the exercise
of the Option or the issuance of shares shall not have been secured.

         6.       TRANSFERABILITY. Except as otherwise provided in this
Paragraph 6, the Option and Deferred Stock Units granted pursuant to this Plan
and Agreement shall not be sold, pledged, assigned, hypothecated, transferred or
disposed of in any manner, other than, in the case of the Option, by will or
under the laws of descent and distribution, whether by the operation of law or
otherwise. Additionally, Executive may transfer the Option and Deferred Stock
Units, in whole or in part, to a spouse or lineal descendant (a "Family
Member"), a trust for the exclusive benefit of Executive and/or Family Members,
a partnership or other entity in which all the beneficial owners are Executive
and/or Family Members, or any other entity affiliated with Executive that may be
approved by the Committee (a "Permitted Transferee"). Subsequent transfers of
the Option and Deferred Stock Units shall be prohibited except in accordance
with this Paragraph 6. All terms and conditions of the Option and Deferred Stock
Units, including provisions relating to the termination of Executive's
employment with the Company, shall continue to apply following a transfer made
in accordance with this Paragraph 6. The Option may be exercised, during
Executive's lifetime, only by Executive or, in the event of Executive's legal
incapacity, by

                                       5
<PAGE>   6

Executive's guardian or legal representative acting in a fiduciary capacity on
behalf of Executive under state law, or a Permitted Transferee to whom Executive
has transferred the Option. Upon any attempt of a transfer of the Option and
Deferred Stock Units prohibited by this Paragraph 6, the Option and Deferred
Stock Units shall immediately become null and void.

         7.       ADJUSTMENTS. The number of shares covered by the Option and
the Deferred Stock Units, the price per share applicable to the Option and, if
applicable, the kind of shares covered by the Option and Deferred Stock Units
shall be adjusted to reflect any stock dividend, stock split, or combination of
shares of the Company's Common Stock. In addition, the Committee may make or
provide for such adjustment in the number of shares covered by the Option and
the Deferred Stock Units, the price per share applicable to the Option, and the
kind of shares covered the Option and the Deferred Stock Units, as the Committee
in its sole discretion may in good faith determine to be equitably required in
order to prevent dilution or enlargement of Executive's rights that otherwise
would result from (a) any exchange of shares of the Company's Common Stock,
recapitalization or other change in the capital structure of the Company, (b)
any merger, consolidation, spin-off, spin-out, split-off, split-up,
reorganization, partial or complete liquidation or other distribution of assets
(other than a normal cash dividend), issuance of rights or warrants to purchase
securities, or (c) any other corporate transaction or event having an effect
similar to any of the foregoing. Moreover, in the event of any such transaction
or event, the Committee may provide in substitution for the Option and the
Deferred Stock Units such alternative consideration as it may in good faith
determine to be equitable under the circumstances and may require in connection
therewith the surrender of the Option and the Deferred Stock Units so replaced.

         8.       FRACTIONAL SHARES. The Company shall not be required to issue
any fractional shares pursuant to this Plan and Agreement, and the Committee may
round fractions down.

         9.       TAXES. To the extent that the Company is required to withhold
federal, state, local or foreign taxes in connection with any benefit realized
by Executive or any other person under this Plan and Agreement, it shall be a
condition to the realization of such benefit that Executive or such other person
make arrangements satisfactory to the Company for payment of all such taxes
required to be withheld, which arrangements may include Executive's delivery to
the Company of a check equal to the amount of such taxes. Upon the payment of
any dividend equivalents payable pursuant to Paragraph 3(d) above, Executive
agrees that the Company shall deduct therefrom such amounts as are necessary to
satisfy applicable withholding requirements.

         10.      NO IMPACT ON OTHER BENEFITS AND EMPLOYMENT. This Plan and
Agreement shall not confer upon Executive any right with respect to continuance
of employment or other service with the Company and shall not interfere in any
way with any right that the Company would otherwise have to terminate
Executive's employment at any time, subject to the terms of the Employment
Agreement. Nothing herein contained shall affect Executive's right to
participate in and receive benefits under and in accordance with the then
current provisions of any pension, insurance or other employment plan or program
of the Company or any of its subsidiaries nor constitute an obligation for
continued employment.

                                       6
<PAGE>   7

         11.      CANCELLATION. With Executive's concurrence, the Committee may
cancel this Plan and Agreement. In the event of such cancellation, the Committee
may authorize the granting of a new option and deferred stock units, which may
or may not cover the same number of shares that had been the subject of the
Option and Deferred Stock Units, in such manner, at such option price and
subject to such other terms and conditions as then determined by the Committee.

         12.      GOVERNING LAW. The validity, construction and effect of this
Plan and Agreement and the Option will be determined in accordance with (a) the
Delaware General Corporation Law, and (b) to the extent applicable, other laws
(including those governing contracts) of the State of Georgia (without regard to
the choice of law provisions thereof).

         13.      MERGER CLAUSE. This Plan and Agreement supersedes any and all
understandings between the Company and Executive with respect to the Option and
the Deferred Stock Units, except in the case of an inconsistency with terms and
conditions expressly provided in the Employment Agreement, in which case such
Employment Agreement terms and conditions will govern, and, except as otherwise
provided herein, this Plan and Agreement may be amended only in writing signed
by the Company and Executive.

PLEASE INDICATE YOUR UNDERSTANDING AND ACCEPTANCE OF THE FOREGOING BY SIGNING
AND RETURNING A COPY OF THIS PLAN AND AGREEMENT.

                                        THE HOME DEPOT, INC.

                                        /s/ Bernard Marcus
                                        ------------------------------------
                                        By:   Bernard Marcus
                                              Co-Chairman of the Board

        I hereby acknowledge receipt of the Option and the Deferred Stock Units
granted on December 4, 2000, which have been granted to me under the foregoing
terms and conditions. I further agree to conform to all of the terms and
conditions of the Option and such Deferred Stock Units.

                                        EXECUTIVE

                                        /s/ Robert L. Nardelli
                                        --------------------------------------
                                        Robert L. Nardelli

                                        Date:
                                               -------------------------------

                                       7
<PAGE>   8

                                   APPENDIX A

                        SCHEDULE FOR DEFERRED STOCK UNITS

<TABLE>
<CAPTION>
     NUMBER OF
     DEFERRED                                                                             DISTRIBUTION DATE
     STOCK UNITS              VESTING DATE                 LATEST DEFERRAL DATE           IF NO DEFERRAL
<S>  <C>                    <C>                            <C>                            <C>

1.     150,000              December 4, 2000                 December 31, 2001              January 1, 2003
2.     150,000              December 4, 2001                 December 31, 2002              January 1, 2004
3.     150,000              December 4, 2002                 December 31, 2003              January 1, 2005
4.     150,000              December 4, 2003                 December 31, 2004              January 1, 2006
5.     150,000              December 4, 2004                 December 31, 2005              January 1, 2007
</TABLE>

                                       8

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