Document:

Exhibit 10.37  

SEPARATION AGREEMENT  

        THIS AGREEMENT (the "AGREEMENT"), effective as of January 2, 2007 (the "EFFECTIVE DATE"), by and between THE HOME DEPOT, INC., a Delaware
corporation (the "COMPANY"), and ROBERT L. NARDELLI (the "EXECUTIVE"). 

        WHEREAS,
the Company and the Executive entered into to a certain Employment Agreement, effective as of December 4, 2000, as amended (the "EMPLOYMENT AGREEMENT"), in connection with the
Executive's commencing service with the Company; 

        WHEREAS,
the Company and the Executive entered into a certain Binding Term Sheet (the "TERM SHEET"), in connection with the Executive's separation from service, which provided, INTER
ALIA, that the Executive and the Company would negotiate in good faith a definitive agreement to supersede the Term Sheet; 

        WHEREAS,
the parties intend that this Agreement shall supersede the Term Sheet and shall confirm the Executive's separation from service and set forth the terms relating thereto; 

        NOW,
THEREFORE, in consideration of the covenants and agreements hereinafter set forth in this Agreement, the Company and the Executive hereby agree as follows: 

        1.     SEPARATION
FROM SERVICE. 

        (a)   The
Company and the Executive agree that the Executive separated from service with the Company in all capacities effective on the Effective Date and that such separation
was a termination by the Company other than for Cause (within the meaning of the Employment Agreement) and they will not at any time make any claim, or otherwise take any position, asserting any other
basis for such termination. 

        (b)   The
Executive confirms that he resigned, effective as of the Effective Date, from the position of Chairman, President and Chief Executive Officer of the Company, and as
a member of the Board of Directors of the Company (the "BOARD") and from all other offices and positions with the Company and all of its subsidiaries, affiliates, joint ventures, partnerships and
other business enterprises (collectively, "AFFILIATES"), as well as from any office or position with any trade group or other industry organization which he holds on behalf thereof. 

        (c)   The
Executive has surrendered to the Company all property of the Company and its Affiliates in the Executive's possession. 

        2.     PAYMENTS
AND BENEFITS. In connection with the Executive's separation from service with the Company, PROVIDED that the Executive does not revoke the release and discharge
set forth in Section 7(b) of this Agreement as provided therein, the Company shall pay and provide the Executive with the following payments and benefits: 

        (a)   CASH
AMOUNTS. On July 3, 2007, or, except in the case of the payment set forth in Section 2(a)(iv) below (the "SECTION 2(A)(IV) PAYMENT"), the
tenth business day following the Company's receipt of notice of the Executive's death, if earlier (the "PAYMENT DATE"), the Executive shall be entitled to receive the cash amounts set forth below (the
"CASH AMOUNTS"), which shall be paid to the Executive from the Trust (as defined in Section 2(e)(i) below), together with income earned by the Trust thereon (other than income earned on
the Section 2(a)(iv) Payment), in accordance with Section 2(e)(iii) and Section 2(e)(iv) below: 

        (i)    A
payment in the amount of twenty million dollars ($20,000,000); 

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        (ii)   A
payment under the Management Incentive Plan in the amount of six million dollars ($6,000,000), in the aggregate, in respect of the 2006 and 2007 fiscal years; 

        (iii)  A
payment in respect of the Executive's 2004-2006 Long-Term Incentive Plan award in the amount of three million dollars ($3,000,000); and 

        (iv)  A
payment in respect of the Deferred Compensation (as defined in the Employment Agreement) in the amount calculated as of July 3, 2007, based on the inputs and
assumptions, and using the same methodology as, shown on Exhibit A to this Agreement; EXCEPT that the interest rate >used for such calculation shall be the interest rate for the month of April
2007 described in Section 417(e)(3)(A)(ii)(II) of the Internal Revenue Code of 1986, as amended (the "CODE"), as published by the Internal Revenue Service in May 2007 (the
"INTEREST RATE"). 

        (b)   EQUITY
AWARDS. 

        (i)    The
stock options set forth on Schedule 2(b)(i) to this Agreement shall vest (to the extent not previously vested) as of the Effective Date and shall be
exercisable (to the extent not previously exercised) through the applicable expiration date set forth on Schedule 2(b)(i). 

        (ii)   The
deferred stock units and deferred shares (the "DEFERRED STOCK") and the restricted stock set forth on Schedule 2(b)(ii) to this Agreement shall vest (to the
extent not previously vested) as of the Effective Date, and, subject to Section 2(e)(v) below, the shares subject to the Deferred Stock (THE "COMMON STOCK") shall be delivered to the
Executive on or as soon as practicable following the Payment Date in accordance with Section 2(e)(ii) below. 

        (iii)  The
Company shall contribute to the Trust all amounts paid as dividends, paid after the Effective Date in respect of the Deferred Stock, which amounts shall be paid to
the Executive on the Payment Date in accordance with Section 2(e)(iii) below (the "DIVIDENDS"). The Company shall directly pay to the Executive, and not to the Trust (defined below), all
amounts paid as dividends in respect of the Deferred Stock that declared for shareholders of record on or before the Payment Date and which dividends are paid to shareholders after the Payment Date,
which amount shall be paid within ten (10) days after the Company pays such dividend. 

        (c)   WELFARE
BENEFITS. 

        (i)    For
a period of three years following the Effective Date (the "CONTINUATION PERIOD"), the Executive and/or the Executive's eligible family members shall continue to
receive health, prescription drug, dental, disability and, subject to Section 2(c)(ii) below, life insurance benefits equivalent to those provided to them, as the case may be, as of the
Effective Date, as set forth on Schedule 2(c) to this Agreement, in each case, pursuant to the payment and reimbursement procedures set forth thereon; PROVIDED that the Executive shall pay the
premiums on all such benefits through the Payment Date and, on the Payment Date, the Executive shall be reimbursed by the Company for the amount thereof, in accordance with the procedures described in
Schedule 2(c). 

        (ii)   During
the Continuation Period, the Company shall maintain the life insurance policies set forth on the attachment to Schedule 2(c) to this Agreement (the
"POLICIES"), in accordance with their respective terms, with the payment and reimbursement of premiums effected as described on Schedule 2(c) to this Agreement, and the Company shall pay the amount of
the Executive's income and employment taxes in respect of such payment and reimbursement on a "grossed up" basis (the "TAX PAYMENTS"); PROVIDED that the aggregate amount paid during the Continuation
Period in respect of the Policies, including the 

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Tax
Payments, shall not exceed one million, three-hundred thousand dollars ($1,300,000); and PROVIDED FURTHER that the Executive shall pay the premiums under the Policies and any Tax Payments through
the Payment Date and, on or prior to each date on which such premium payments are due, the Company shall contribute the amount of such payments and the applicable Tax Payments to the Trust, and, on
the Payment Date, the Executive shall be entitled to receive such amount and income thereon. 

        (d)   Contractual
Amounts. On each of the first through fourth anniversaries of the Effective Date (each, an "ANNIVERSARY DATE"), subject to the Executive's compliance with
the provisions of Section 3 and Section 4 of this Agreement, the Executive shall be entitled to receive an amount equal to four million, five-hundred thousand dollars
($4,500,000) (collectively, the "CONTRACTUAL AMOUNTS"), plus the interest earned by the Trust thereon, which shall be paid to the Executive from the Trust in accordance with Section
2(e)(ii) below. 

        (e)   TRUST.

        (i)    The
Company shall promptly (without regard for any revocation period under Section 7(b)) establish a "rabbi" trust satisfying the requirements of Internal Revenue
Procedure 92-64, which trust shall be substantially in the form of Exhibit B to this Agreement (the "TRUST"). The trustee of the Trust (the "TRUSTEE") shall be selected by Executive
and consented to by the Company, with such consent not to be unreasonably withheld, and the Company shall pay all trust administration and trustee's fees and expenses for the Trust and, to the extent
not paid timely in accordance with the Trust, shall promptly pay the Executive all such amounts deducted by the Trustee towards such fees and expenses. On or about February 1, 2007, the Company
shall promptly contribute to the Trust (A) the Cash Amounts, (B) the Contractual Amounts, (C) the amounts to be paid to the Trust for welfare benefit premiums per Schedule 2(c) to this
Agreement (the "WELFARE BENEFIT PREMIUMS"), and (D) the Common Stock and, subject to Section 2(e)(iv) below, shall contribute the Dividends to the Trust when paid, on the Common Stock
held in the Trust, pursuant to Section 2(b)(iii); PROVIDED that all such contributions (and all income thereon) shall revert and be refunded to the Company in the event that the Executive timely
revokes his release pursuant to Section 7(b); and PROVIDED FURTHER that to the extent that the foregoing contributions in respect of the Cash Amounts (other than the
Section 2(a)(iv) Payment), the Contractual Amounts and the Welfare Benefit Premiums (collectively, the "CASH CONTRIBUTIONS") are not made to the Trust on or before February 1, 2007, the
Company shall invest the Cash Contributions in the same manner as the Company's other short-term cash investments (e.g., in a money market fund) and, the Company shall contribute to the
Trust, when the Cash Contributions are made, an additional contribution equal to the amount of interest earned by the Company thereon for the period beginning on February 1, 2007, and ending on
the date of contribution thereof. In the event that the Company anticipates that the Cash Contributions will be significantly delayed beyond February 1, 2007, the Company and the Executive shall
cooperate, reasonably and in good faith, to agree to an appropriate investment of the Cash Contributions, taking into account the circumstances of such delay, and the Company shall contribute to the
Trust the return on such investment at such time as the Cash Contributions are made, The principal of the Trust, other than the Common Stock, shall be invested in ten (10)-year United
States Treasury securities having maturity dates occurring as soon as reasonably possible prior to the Payment Date or the applicable Anniversary Date, as the case may be, and upon the date of deposit
of principal into the Trust the Company shall so direct the Trustee in writing; PROVIDED that the Company may direct the Trustee, in writing, to invest the principal other than in such Treasury
Securities with the Executive's prior written consent; and PROVIDED FURTHER that the Company shall not be responsible for and the Company's obligations hereunder shall 

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be
reduced by the amount of any investment losses with respect to the principal (or income earned on the principal) of the Trust; and PROVIDED FURTHER that all transaction costs associated with such
investment shall be borne by and shall reduce the principal of and income earned by the Trust. The Company shall have the right, at any time, and from time to time in its sole discretion, to
substitute assets of equal fair market value for Common Stock held by the Trust; PROVIDED that any such substituted assets shall be invested in the same manner as Cash Amounts, above, and upon such
substitution, the Company shall so direct the Trustee in writing accordingly. 

        (ii)   Subject
to the provisions hereof, any income earned by the Trust on the Contractual Amounts shall be paid to the Executive on the applicable Anniversary Dates on a PRO
RATA basis with the Contractual Amounts, and any unpaid income thereon shall be paid with the final such installment of the Contractual Amounts. The Contractual Amounts, together with income as
provided herein, shall be paid to the Executive on the applicable Anniversary Dates unless the Company has notified the Trustee that the Executive is not in compliance with the provisions of
Section 3 and Section 4 of this Agreement.
In the event of such notice, the procedure set forth in Section 14(b) of this Agreement shall be followed, and such payment of the Contractual Amounts and income shall be made from the Trust as
determined in accordance with Section 14(b) hereof. 

        (iii)  Any
income earned on the Cash Amounts (other than income earned in respect of the Section 2(a)(iv) Payment), the Welfare Benefit Premiums and the Dividends
deposited in the Trust shall be paid to the Executive on the Payment Date. Without further action by the Company and the Executive, the Cash Amounts, the Welfare Benefit Premiums, the Dividends and
the applicable income shall be paid by the Trustee to the Executive on the Payment Date, and, subject to Section 2(e)(v) below, the Common Stock shall be delivered to the Executive from the
Trust on or as soon as practicable following the Payment Date. 

        (iv)  For
purposes of Section 2(e)(i) above, the contribution to the trust in respect of the Section 2(a)(iv) Payment shall be in the amount of
thirty-three million eight-hundred eighty-six thousand four hundred twenty-three dollars ($33,886,423); PROVIDED that, promptly after publication of the Interest Rate by the Internal
Revenue Service, the Company shall contribute to the Trust an additional amount equal to the excess, if any, of the amount of the Section 2(a)(iv) Payment, over the amount previously
contributed to the Trust in respect of such payment and the income thereon; and PROVIDED FURTHER that the Trustee shall distribute to the Company from the Trust the excess, if any, of the total amount
contributed to the Trust in respect of the Section 2(a)(iv) Payment and the income thereon, over the amount of such payment. 

        (v)   On
or about February 21, 2007, the Trustee shall effect the sale of eight-hundred sixty-two thousand five hundred (862,500) shares of the Common
Stock. The cash proceeds from such sale shall be invested as provided in Section 2(e)(i) above and, without further action by the Company and the Executive, shall be paid by the Trustee to the
Executive on the Payment Date with income thereon as provided herein. 

        (f)    ACCRUED
OBLIGATIONS. On the Company's next payroll date, to the extent not previously paid, the Company shall pay the Executive's Base Salary including accrued and
unused vacation days through the Effective Date and shall reimburse the Executive for the expenses that he incurred during the course of his employment with the Company, in each case, in accordance
with the applicable Company policies and procedures. The Executive shall receive a distribution, on January 2, 2008, of the Executive's vested account balance under the FutureBuilder Restoration Plan,
and shall receive all accrued and vested benefits under the FutureBuilder 401(k) Plan and the Employee Stock Purchase Plan in accordance with the terms thereof. 

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        (g)   LEGAL
FEES. On the Payment Date, the Company shall pay on the Executive's behalf an aggregate amount of up to fifty thousand dollars ($50,000) in connection with the
reasonable fees and
expenses of the Executive's attorneys in connection with the negotiation of this Agreement, the Term Sheet and the Trust. 

        (h)   EXCISE
TAXES. In the event that the aggregate of all payments or benefits made or provided to, or that may be made or provided to, the Executive under this Agreement and
under all other plans, programs and arrangements of the Company (the "AGGREGATE PAYMENT") is determined to constitute a "parachute payment," as such term is defined in Section 280G(b)(2) of the
Code, the Company shall pay to the Executive, prior to the time any excise tax imposed by Section 4999 of the Code ("EXCISE TAX") is payable with respect to such Aggregate Payment, an additional
amount which, after the imposition of all income and excise taxes thereon, is equal to the Excise Tax on the Aggregate Payment. The determination of whether the Aggregate Payment constitutes a
parachute payment and, if so, the amount to be paid to the Executive and the time of payment pursuant to this Section 2(h) shall be made by an independent auditor (the "AUDITOR") jointly selected by
the Company and the Executive and paid by the Company. The Auditor shall be a nationally recognized United States public accounting firm which has not, during the two years preceding the date of its
selection, acted in any way on behalf of the Company or any affiliate thereof. If the Executive and the Company cannot agree on the firm to serve as the Auditor, then the Executive and the Company
shall each select one accounting firm and those two firms shall jointly select the accounting firm to serve as the Auditor. Notwithstanding the foregoing, in the event that the amount of the
Executive's Excise Tax liability is subsequently determined to be greater than the Excise Tax liability with respect to which an initial payment to the Executive under this Section 2(h) has
been made, the Company shall pay to the Executive an additional amount with respect to such additional Excise Tax (and any interest and penalties thereon) at the time and in the amount determined by
the Auditor so as to make the Executive whole, on an after-tax basis, with respect to such Excise Tax (and any interest and penalties thereon) and such additional amount paid by the
Company. In the event the amount of the Executive's Excise Tax liability is subsequently determined to be less than the Excise Tax liability with respect to which an initial payment to the Executive
has been made, the Executive shall, as soon as practical after the determination is made, pay to the Company the amount of the overpayment by the Company, reduced by the amount of any relevant taxes
already paid by the Executive and not refundable, all as determined by the Auditor. The Executive and the Company shall cooperate with each other in connection with any proceeding or claim relating to
the existence or amount of liability for Excise Tax, and all expenses incurred by the Executive in connection therewith shall be paid by the Company promptly upon notice of demand from the Executive. 

        (i)    INDEMNIFICATION.
The Company shall maintain, for the benefit of the Executive, director and officer liability insurance that is at least as comprehensive as, and in an
amount that is at least equal to, that maintained by the Company on December 4, 2000. In addition, the Executive shall be indemnified by the Company against liability as an officer and director
of the Company and any Affiliate of the Company to the maximum extent permitted by applicable law and the Bylaws of the Company as in effect from time to time. The Executive's rights under this
Section 2(i) shall continue so long as he may be subject to such liability. 

        3.     RESTRICTIVE
COVENANTS. 

        (a)   CONFIDENTIALITY.
The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to
the Company, or any of its subsidiaries, affiliates and businesses, which shall have been obtained by the Executive pursuant to or in connection with his employment by the Company or any of its
Affiliates and which shall not have become public knowledge (other than by acts by the Executive or his 

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representatives
in violation of this Agreement), including the causes and circumstances of the Executive's separation from service. The Executive shall not, without the prior written consent of the
Company, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it. 

        (b)   NON-COMPETITION.
During the period commencing on the Effective Date and ending on the first anniversary thereof, the Executive shall not, without the prior
written consent of the Company, directly or indirectly, and whether as principal or investor or as an employee, officer, director, manager, partner, consultant, agent or otherwise, alone or in
association with any other person, firm, corporation or other business organization, engage in any business that competes, directly or indirectly, with the Company or its Affiliates in any geographic
area in which the Company (i) has engaged in such business or (ii) engages in such business during such period prior to the time the Executive engages in such business. 

        (c)   NON-SOLICITATION.
During the period commencing on the Effective Date and ending on the fourth anniversary thereof, the Executive shall not, directly or
indirectly, hire, engage, employ or solicit, any employee or consultant of the Company or any of its Affiliates, nor shall the Executive take any action, directly or indirectly, that interferes with
the Company's relationship, or that of any its Affiliates, with any customers, clients, suppliers, or other persons or entities with whom it does business. 

        4.     NON-DISPARAGEMENT.
Except as may be required by law or subpoena, neither the Executive nor the "officers" (within the meaning of
Rule 16a-1(f) under the Securities and Exchange Act of 1934, as amended) or directors of the Company shall disparage, criticize or otherwise publish or communicate any statements or
opinions that could be derogatory to or otherwise harm the business or reputation of the other party. 

        5.     COOPERATION.
The Executive agrees to reasonably cooperate to ensure an orderly transition. In addition, to the extent not unreasonably interfering with the
full-time endeavors of the Executive, the Executive shall cooperate in connection with the conduct of any action, proceeding or investigation involving the Company and its Affiliates;
PROVIDED, that the Company pays all reasonable expenses incurred by Executive. 

        6.     INJUNCTIVE
RELIEF, ETC. The parties hereby acknowledge that their respective obligations under this Agreement are of such special, unique, and extraordinary character and
value that the parties have no adequate remedy at law and will be irreparably harmed in the event of any breach or threatened breach thereof, and, therefore, agree that the parties shall be entitled
to injunctive relief to prevent any breach or threatened breach of any of the provisions of this Agreement and shall be entitled to specific performance thereof, in addition to any other remedy at law
or in equity that either party may have. In addition to any remedies available to the Company at law or in equity, any unpaid Contractual Amounts shall be treated as liquidated damages and returned to
the Company in accordance with Section 14(b) below in the event of any breach by the Executive of the provisions of Section 3 and Section 4 hereof. 

        7.     RELEASE
BY THE EXECUTIVE. 

        (a)   RELEASE.
In consideration of the payments and benefits provided to the Executive under this Agreement and the Employment Agreement, and in consideration of the Company's
waiver and release set forth below, in connection with his separation from service and after consultation with counsel, the Executive, and each of the Executive's respective heirs, executors,
administrators, representatives, agents, successors and assigns (collectively, the "RELEASORS") hereby irrevocably and unconditionally release and ever discharge the Company and any of its
subsidiaries, affiliates or predecessors (collectively, the "COMPANY GROUP") and each of their respective officers, employees, directors, shareholders and agents from any and all claims, actions, 

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causes
of action, rights, judgments, obligations, damages, demands, accountings or liabilities of whatever kind or character (collectively, "CLAIMS"), including, without limitation, any Claims arising
under Title VII of the Civil Rights Act of 1964, the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Civil Rights Act of 1866, the Civil Rights Act of 1991, the Employee
Retirement Income Security Act of 1974, the Family Medical Leave Act of 1993, or any other federal, state, local or foreign law, that the Releasors may have, arising out of the Executive's employment
relationship with and service as an employee, officer or director of the Company Group, and the termination of such relationship or service; PROVIDED, however, that the release set forth in this
Section 7(a) shall not apply to the obligations of the Company under this Agreement. The Releasors further agree that the payments and benefits described in this Agreement shall be in full
satisfaction of any and all Claims for payments or benefits, whether express or implied, that the Releasors may have against the Company Group arising out of the Executive's employment relationship or
the Executive's service as an employee, officer and director of the Company Group and the termination thereof other than rights under any and all the Company benefit plans and programs in accordance
with the terms of such plans or programs. 

        (b)   SPECIFIC
RELEASE OF ADEA CLAIMS. In further consideration of the payments and benefits provided to the Executive under this Agreement, the Releasors hereby
unconditionally release and forever discharge the Company Group, and each of their respective officers, employees, directors, shareholders and agents from any and all Claims that the Releasors may
have as of the date the Executive signs this Agreement arising under the Federal Age Discrimination in Employment Act of 1967, as amended, and the applicable rules and regulations promulgated
thereunder ("ADEA"). By
signing this Agreement, the Executive hereby acknowledges and confirms the following: (i) the Executive was advised by the Company in connection with his termination to consult with an attorney
of his choice prior to signing this Agreement and to have such attorney explain to the Executive the terms of this Agreement, including, without limitation, the terms relating to the Executive's
release of claims arising under ADEA and, the Executive has in fact consulted with an attorney; (ii) the Executive was given a period of not fewer than twenty-one (21) days
to consider the terms of this Agreement and to consult with an attorney of his choosing with respect thereto; (iii) the Executive is providing the release and discharge set forth in this
Section 7(b) only in exchange for consideration in addition to anything of value to which the Executive is already entitled; and (iv) the Executive knowingly and voluntarily accepts the
terms of this Agreement. The release and discharge set forth in this Section 7(b) may be revoked by the Executive by a written instrument signed by the Executive and received by the Company prior to
the expiration of the seven-day period commencing on the date the Executive signs this Agreement. 

        (c)   NO
ASSIGNMENT. The Executive represents and warrants that he has not assigned any of the Claims being released under this Section 7. 

        (d)   CLAIMS.
The Executive agrees that he has not instituted, assisted or otherwise participated in connection with, any action, complaint, claim, charge, grievance,
arbitration, lawsuit, or administrative agency proceeding, or action at law or otherwise against any member of the Company Group or any of their respective officers, employees, directors, shareholders
or agents. 

        8.     RELEASE
BY THE COMPANY. 

        (a)   RELEASE.
In consideration of the Executive's waiver and release of claims set forth above and the other obligations of the Executive hereunder, the Company Group, for
its, and their respective officers, directors, employees, shareholders and agents, hereby irrevocably and unconditionally releases and forever discharges the Executive, his family, his estate, his
agents, attorneys, his heirs, executors, administrators, representatives, successors and assigns from and against any and all Claims that they may have, relating to or arising out of, directly or
indirectly, 

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the
Executive's employment relationship with and service as a director, employee or officer of the Company Group and the termination of such relationship or service; PROVIDED, however, that this
release shall not apply to any of the Executive's obligations under this Agreement. 

        (b)   NO
ASSIGNMENT. The Company represents and warrants that no member of the Company Group has assigned any of the Claims being released under this Section 8. 

        (c)   CLAIMS.
The Company agrees that neither it nor any member of the Company Group has instituted, assisted or otherwise participated in connection with, any action,
complaint, claim, charge, grievance, arbitration, lawsuit, or administrative agency proceeding, or action at law or otherwise against the Executive, any of the Releasors or any of their respective
officers, employees, directors, shareholders or agents. 

        9.     NOTICES.
All notices required to be given hereunder shall be given in writing, by personal delivery or by mail, addressed as follows: 

If
to the Executive: 

Robert
L. Nardelli

c/o Vedder, Price, Kaufman & Kammholz, P.C.

222 N. LaSalle Street

26th Floor

Chicago, IL 60601

ATT: Robert J. Stucker, Esq. 

With
a copy to: 

Robert
J. Stucker, Esq.

Vedder, Price, Kaufman & Kammholz,

P.C. 222 N. LaSalle Street

26th Floor

Chicago, IL 60601 

If
to the Company: 

The
Home Depot, Inc.

2455 Paces Ferry Road

Atlanta, GA 30339 

or
at such other address as may be designated in writing by either party, and in the case of the Company, to the attention of the General Counsel of the Company. Any notice given by overnight or
next-day mail or delivery shall be deemed to have been given the day following the day such notice is sent. Any other notice that is given by mail shall be deemed to have been given three
days following such mailing. 

        10.   ASSIGNMENT
AND SUCCESSORS. This Agreement may not be assigned by the Executive or the Company except that the Company may assign this Agreement to any successor in
interest to the Company, provided that such assignee assumes all of the obligations of the Company hereunder. As used in this Agreement, "the Company" shall mean the Company as defined above and any
successor to its business and/or assets which by reason hereof assumes and agrees to perform this Agreement by operation of law, or otherwise. 

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        11.   DELAWARE LAW. This Agreement and all matters or issues collateral thereto shall be governed by the laws of the State of Delaware, without giving effect to the conflicts
of laws principles thereof. 

        12.   REPRESENTATIONS
OF THE COMPANY. The Company represents and warrants to the Executive that (i) the execution, delivery and performance of this Agreement have been
duly and validly authorized on behalf of the Company, (ii) the execution, delivery and performance of this Agreement by the Company does not and will not violate any law, regulation, order,
judgment or decree or any agreement, plan or corporate governance document of the Company and (iii) upon the execution and delivery of this Agreement by the Executive, this Agreement shall be
the valid and binding obligation of the Company, enforceable in accordance with its terms, except to the extent enforceability may be limited by applicable bankruptcy, insolvency or similar laws
affecting the enforcement of creditors' rights generally and by the effect of general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law). 

        13.   REPRESENTATIONS
OF THE EXECUTIVE. The Executive represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by the
Executive does not and will not violate any law, regulation, order, judgment or decree or any agreement to which the Executive is a party or by which he is bound, (ii) the Executive is not a
party to or bound by any agreement with any person or entity that would interfere with this Agreement or his performance of services hereunder and (iii) upon the execution and delivery of this
Agreement by the Company, this Agreement shall be the valid and binding obligation of the Executive, enforceable in accordance with its terms, except to the extent enforceability may be limited by
applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally and by the effect of general principles of equity (regardless of whether enforceability is
considered in a proceeding in equity or at law). 

        14.   DISPUTES.

        (a)   ARBITRATION.
Except as provided in Section 14(b) below, any dispute or controversy between the Company and the Executive, whether arising. out of or relating to this
Agreement, the breach of this Agreement, or otherwise, shall be settled by arbitration administered by the American Arbitration Association ("AAA") in accordance with its Commercial Arbitration Rules
then in effect, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Any arbitration shall be held before a single arbitrator who shall be
selected by the mutual agreement of the Company and the Executive, unless the parties are unable to agree to an arbitrator, in which case, the arbitrator will be selected under the procedures of the
AAA. 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 an injunction.
However, either party may, without inconsistency with
this arbitration provision, apply to any court having jurisdiction over such dispute or controversy and seek interim provisional, injunctive or other equitable relief. Except as necessary in court
proceedings to enforce this arbitration provision or an award rendered hereunder, or to obtain injunctive 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 and the Executive. The Company and the Executive acknowledge that this Agreement evidences a transaction involving interstate
commerce. Notwithstanding any choice of law provision included in this Agreement, the United States Federal Arbitration Act shall govern the interpretation and enforcement of this arbitration
provision. The arbitration proceeding shall be conducted in Atlanta, Georgia or such other location to which the parties may agree. The Company shall pay the costs of any arbitrator appointed
hereunder. 

        (b)   PAYMENT
OF THE CONTRACTUAL AMOUNTS. In the event that the Executive does not comply with any of the provisions of Section 3 or Section 4 of this Agreement,
the 

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Company
shall provide notice to the Executive and the Trustee (in accordance with the respective provisions of this Agreement and the Trust), setting forth with reasonable specificity the Executive's
noncompliance, and, except as set forth in this Section 14(b), the Trustee shall not make any subsequent payment in respect of the Contractual Amounts. The Company's failure to set forth in any
such notice any fact or circumstance which contributes to showing such noncompliance shall not waive any of the Company's rights hereunder or preclude the Company from asserting such fact or
circumstances in enforcing such rights. Not later than twenty (20) business days following such notice by the Company, the Executive may provide notice to the Company and the Trustee (in
accordance with the respective provisions of this Agreement and the Trust) disputing the stated noncompliance and setting forth the Executive's position with respect thereto. If no such notice is
provided by the Executive, then all unpaid Contractual Amounts and income thereon shall be paid promptly to the Company from the Trust. Following any such notice by the Executive, the Company and the
Executive shall endeavor, for a period of forty-five (45) days, to resolve the dispute through nonbinding mediation, at the cost of the Company, before a mutually agreeable neutral
mediator under the Commercial Mediation Rules of the AAA, at a location mutually agreed by the Executive and the Company. If the parties are unable to resolve the dispute through mediation, then they
shall submit the dispute to binding arbitration in accordance with Section 14(a) above, following which the arbitrator shall communicate the decision, identifying the prevailing party, to the Trustee.
If the Company is the prevailing party, then the Trustee shall pay the Company all unpaid Contractual Amounts and income on such Contractual Amounts. If the Executive is the prevailing party, then the
Trustee shall pay the Executive the Contractual Amounts that the Executive would have received through the date of such payment and income on such Contractual Amounts if the Company had not provided
the notice giving rise to the dispute. 

        15.   SEVERABILITY.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement. 

        16.   ENTIRE
AGREEMENT, ETC. This Agreement supersedes the Term Sheet and any and all agreements (including the Employment Agreement, which was terminated by the Term Sheet),
discussions, negotiations or understandings and constitutes the entire agreement of the parties with respect to the subject matter hereof, and can be amended only by a writing signed by the parties
hereto. No rule or presumption regarding the construction of this Agreement against the drafter shall apply. 

        17.   WAIVER.
Any party's failure to insist upon strict compliance with any provision hereof shall not be deemed to be a waiver of such provision or any other provision
hereunder. 

        18.   BENEFICIARIES.
Any payment provided to be made to the Executive shall, in the event of the Executive's death, instead be made (i) in the case of any payment
pursuant to a plan or other arrangement under which the Executive has designated a beneficiary, to the Executive's beneficiary and (ii) in any other case, to the legal representative of the
Executive's estate or such other beneficiary as he may hereafter designate in writing by notice to the Company, or (iii) as otherwise required by law. 

        19.   DEDUCTIONS
AND WITHHOLDINGS. All amounts payable under this Agreement and all amounts contributed to the Trust hereunder shall be paid or contributed less deductions and
income and payroll tax withholdings as may be required under applicable law, including by reducing, in satisfaction of such deductions and withholdings, the number of shares of Common Stock that may
be delivered to the Executive or contributed to the Trust hereunder, and any benefits and perquisites provided to the Executive under this Agreement shall be taxable to the Executive as may be
required under applicable law. 

10

 

        20.   COUNTERPARTS.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one
and the same instrument. 

        21.   HEADINGS.
The descriptive headings contained in this Agreement are included for convenience of reference only and shall not affect in any way the meaning or
interpretation of this Agreement. Unless otherwise expressly provided for in this Agreement, the word "including" or any variation thereof means "including, without limitation" and shall not be
construed to limit any general statement that it follows to the specific or similar items or matters immediately following it. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 

	 	 	THE HOME DEPOT, INC.
	

 	
 	

By:	
 	

/s/  FRANCIS S. BLAKE      
 Name:  Francis S. Blake

Title:  Chairman and Chief Executive Officer
	

 	
 	

 	
 	

/s/   ROBERT L. NARDELLI      
 Robert L. Nardelli

11

 
SCHEDULE
2(B)(I) 

STOCK
OPTIONS 

	 
	 	AWARD DATE
	 	EXPIRATION DATE
	 	EXERCISE PRICE
	 	NUMBER OF SHARES

	1.	 	12/04/2000	 	12/03/2010	 	$	40.75	 	1,000,000
	2.	 	12/04/2000	 	12/04/2010	 	$	40.75	 	500,000
	3.	 	12/04/2000	 	12/04/2011	 	$	40.75	 	500,000
	4.	 	12/04/2000	 	12/04/2012	 	$	40.75	 	500,000
	5.	 	12/04/2000	 	12/04/2013	 	$	40.75	 	500,000
	6.	 	12/04/2000	 	12/04/2014	 	$	40.75	 	500,000
	7.	 	9/17/2001	 	9/16/2011	 	$	36.20	 	1,000,000
	8.	 	4/29/2002	 	4/28/2012	 	$	46.96	 	750,000
	9.	 	3/19/2003	 	3/18/2013	 	$	24.55	 	250,000
	10.	 	8/21/2003	 	8/20/2013	 	$	32.76	 	65,000
	11.	 	3/17/2004	 	3/16/2014	 	$	36.50	 	500,000
	12.	 	8/06/2004	 	8/05/2014	 	$	32.90	 	100,000
	13.	 	3/23/2005	 	3/22/2015	 	$	37.70	 	500,000
	14.	 	8/18/2005	 	8/17/2015	 	$	40.70	 	90,000

Schedule 2(b)(i)

12

 
SCHEDULE
2(B)(II) 

DEFERRED
STOCK UNITS/DEFERRED SHARES 

	 
	 	AWARD DATE
	 	NUMBER OF SHARES(1)

	1.	 	12/04/2000	 	600,000
	2.	 	9/17/2001	 	200,000
	3.	 	3/19/2003	 	212,500
	4.	 	8/21/2003	 	250,000
	5.	 	8/21/2003	 	101,250
	6.	 	3/17/2004	 	200,000
	7.	 	8/6/2004	 	200,000
	8.	 	3/23/2005	 	200,000
	9.	 	8/18/2005	 	175,000

RESTRICTED
STOCK 

	 
	 	AWARD DATE
	 	NUMBER OF SHARES(1)

	1.	 	3/20/2006	 	380,000
	2.	 	3/20/2006	 	225,000
	3.	 	3/20/2006	 	39,426

	(1)
	An
aggregate of 2,120,242 shares will be contributed to the rabbi trust. 

Schedule 2(b)(ii)

WELFARE
BENEFITS 

	1.	 	Health Prescription Benefits	 	BENEFIT CONTINUATION: Health and prescription and benefits during the three-year continuation period (ending on January 2, 2010) provided at a level no less favorable than as provided to Executive and his dependents
immediately prior to the Effective Date through the CIGNA Choice/PPO elected by Executive under the Company's group medical plan ("BASELINE Benefit"). Benefits during such three-year period provided as follows:
	

 	
 	

 	
 	

FIRST 18 MONTHS: Through the 18-month period immediately following the Effective Date (the "COBRA PERIOD") the Company's obligation shall be met through COBRA continuation of the Executive's health and prescription benefits as of the Effective Date.
The Company acknowledges that the Executive properly elected COBRA continuation on January 8, 2007. If the Company's obligation cannot be met through COBRA continuation due to the Company's group health and/or prescription coverage becoming less
favorable than the Baseline Benefit, the Company shall meet its obligation through supplemental or replacement arrangements which provide benefits not less favorable than the Baseline Benefit.
	

 	
 	

 	
 	

SECOND 18 MONTHS: During the 18-month period immediately following the COBRA Period (the "SECOND PERIOD"), the Company's obligation shall be met through provision of health and prescription benefits via a fully insured group medical plan provided by
the Company (which may be other than the Company's standard group medical plan) or through other arrangements providing benefits no less favorable than the Baseline Benefit.
	 	 	 	 	 

13

 

	

 	
 	

 	
 	

PAYMENT FOR FIRST 18 MONTHS OF COVERAGE: Within 14 days of the Executive executing this Agreement, Executive shall pay an amount equal to the product of 18 MULTIPLIED BY the monthly COBRA premium for continuation of the Executive's health and
prescription benefits in place immediately prior to the Effective Date (the "FULL COBRA PREMIUM") directly to the administrator which normally receives such COBRA continuation premium payments. After the Trust (as defined in Section 2(e) of the
Agreement) is established, the Company shall contribute to the Trust an amount equal to the Full COBRA Premium reduced by the product of 18 MULTIPLIED BY the monthly employee-pay dollar amount for the Executive's health and prescription coverage in
place immediately prior to the Effective Date (the "COMPANY-PAID COBRA PREMIUM"). On the Payment Date, Executive shall receive payment from the Trust equal to the Company-Paid COBRA Premium, plus income thereon from the date such amount was placed in
the Trust to the Payment date. To the extent the premium for such health and prescription continuation coverage may increase during the COBRA Period, the Company shall promptly pay such increase and shall notify Executive in writing of any
reimbursement he should pay to the Company as the employee-pay portion of such premium increase. Executive shall pay such amounts to the Company within 14 days of his receipt of such written notice.
	

 	
 	

 	
 	

PAYMENT FOR SECOND 18 MONTHS OF COVERAGE: No less than three months prior to the start of the Second Period, the Company shall pay the full premium for the health and prescription coverage for the entire Second Period to the appropriate administrator
for such benefits. At the time of such payment, the Company shall provide written notice to Executive that the full premium for the Second Period has been paid and shall provide written notice of the employee-pay portion of such full premium (as in
place for active executive employees of the Company at such time). Within 14 days of the Executive's receipt of such written notice, the Executive shall pay to the Company such employee-pay portion of the full premium for the Second
Period.
	

 	
 	

 	
 	

TAX IMPACT: To the extent the health and prescription benefits described above in this Number 1 create taxable income to Executive, Executive shall receive full tax gross-up from the Company.
	

 	
 	

 	
 	

BENEFITS AFTER END OF THE 3-YEAR PERIOD: As of January 2, 2010 (or, if later, the termination of the coverage provided during the Second Period), subject to the consent of the Company's insurer thereunder, the Executive may enroll in the Company's
executive-retiree health and prescription benefits program as in place at such time and from time to time thereafter.
	 	 	 	 	 

14

 

	

2.	
 	

Dental Benefits	
 	

BENEFIT CONTINUATION: Dental benefits during the three-year continuation period(ending on January 2, 2010) provided at a level no less than as provided to Executive and his dependents immediately prior to the Effective Date through the Company's
group dental plan ("BASELINE DENTAL BENEFIT").
	

 	
 	

 	
 	

FIRST 18 MONTHS: Through the COBRA Period (as defined above) the Company's obligation shall be met through COBRA continuation of the Executive's dental benefits as of the Effective Date. The Company acknowledges that the Executive properly elected
COBRA continuation of his dental benefits on January 8, 2007. If the Company's obligation cannot be met through COBRA continuation due to the Company's group dental coverage becoming less favorable than the Baseline Dental Benefit, the Company shall
meet its obligation through supplemental or replacement arrangements which provide benefits not less favorable than the Baseline Dental Benefit.
	

 	
 	

 	
 	

SECOND 18 MONTHS: During the Second Period (as defined above), the Company's obligation shall be met through provision of dental benefits via a fully insured group dental plan provided by the Company (which may be other than the Company's standard
group dental plan) or through other arrangements providing benefits no less favorable than the Baseline Dental Benefit.
	

 	
 	

 	
 	

PAYMENT FOR FIRST 18 MONTHS OF COVERAGE: Within 14 days of Executive executing this Agreement, Executive shall pay an amount equal to the product of 18 MULTIPLIED BY the monthly COBRA premium for continuation of the Executive's dental benefits in
place immediately prior to the Effective Date (the "FULL DENTAL COBRA PREMIUM") directly to the administrator which normally receives such COBRA continuation premium payments. Promptly after the Trust is established, the Company shall contribute to
the Trust an amount equal to the Full Dental COBRA Premium reduced by the product of 18 MULTIPLIED BY the monthly employee-pay dollar amount for the Executive's dental coverage in place immediately prior to the Effective Date (the "COMPANY-PAID
DENTAL COBRA PREMIUM"). On the Payment Date, Executive shall receive payment from the Trust equal to the Company-Paid Dental COBRA Premium, plus income thereon from the date such amounts were placed in the Trust to the Payment Date. To the extent the
premium for such dental continuation coverage may increase during the COBRA Period, the Company shall promptly pay such increase and shall notify Executive in writing of any reimbursement he should pay to the Company as the employee-pay portion of
such premium increase. Executive shall pay such amount to the Company within 14 days of his receipt of such written notice.
	

 	
 	

 	
 	

PAYMENT FOR SECOND 18 MONTHS OF COVERAGE: No less than three months prior to the start of the Second Period, the Company shall pay the full premium for the dental coverage for the entire Second Period to the appropriate administrator for such
benefits. At the time of such payment, the Company shall provide written notice to Executive that the full premium for the dental benefits for the Second Period has been paid and shall provide written notice of the employee-pay portion of such full
premium (as in place for active executive employees of the Company at such time). Within 14 days of Executive receiving such written notice, the Executive shall pay to the Company such employee-pay portion of the full premium for the dental benefits
for the Second Period.
	 	 	 	 	 

15

 

	

 	
 	

 	
 	

TAX IMPACT: To the extent the dental benefits described above in this Number 2 create taxable income to Executive, Executive shall receive full tax gross-up from the Company.
	

3.	
 	

Short-Term Disability Benefits	
 	

BENEFIT CONTINUATION: Short-term disability benefits during the three-year continuation period (ending on January 2, 2010) provided by the Company at a level no less than as provided to Executive immediately prior to the Effective Date. It is
anticipated that this benefit will be provided directly from the Company and not through an insurance plan.
	

 	
 	

 	
 	

TAX IMPACT: To the extent provision of this short-term disability coverage results in taxable income to Executive, Executive shall receive full tax-gross up from the Company; PROVIDED that any short-term disability benefit payments received by
Executive under this coverage shall be taxable to Executive without a tax gross-up thereon.
	

4.	
 	

Long-Term Disability Benefits	
 	

BENEFIT CONTINUATION: Long-term disability benefits during the three-year continuation period (ending on January 2, 2010) provided at a level no less than as provided to Executive immediately prior to the Effective Date.
	

 	
 	

 	
 	

Such benefits to be provided as described in (i) and (ii) below:
	

 	
 	

 	
 	

(i) Via an Individual Disability Income policy no less favorable than as in effect for Executive immediately prior to the Effective Date. Executive shall pay the premium for this benefit directly to the administrator which normally receives such
payments. Within 14 days of receiving notice from Executive that such premiums have been paid, or, if later, on the Payment Date, the Company shall reimburse Executive for such amounts; and
	

 	
 	

 	
 	

(ii) Via a Company-provided benefit no less that the Group Disability Insurance policy provided to Executive immediately prior to the Effective Date.
	

 	
 	

 	
 	

TAX IMPACT: The extent that the reimbursement of premiums described in (i) above and/or the coverage described in (ii) above create taxable income to Executive, Executive shall receive full tax gross-up from the Company.
	

5.	
 	

Life Insurance	
 	

BENEFIT CONTINUATION: Life insurance benefits during the three-year continuation period (ending on January 2, 2010) providing death proceeds in an amount not less than as provided to Executive immediately prior to the Effective Date per the life
insurance benefits documented on the table titled "Summary of Life Insurance Policies" below (the "LIFE INSURANCE SUMMARY"). Life insurance benefits during such three-year period provided as follows:
	 	 	 	 	 

16

 

	

 	
 	

 	
 	

(i) Executive to convert MetLife group policy (number 12 on Life Insurance Summary) to an individual policy and Executive to pay premiums on such policy directly. Company to reimburse Executive for payment of such premiums within 14 days of receiving
written notice from Executive of his having paid such premium, but not earlier than the Payment Date; and
	

 	
 	

 	
 	

(ii) For policies numbered 1-11 on Life Insurance Summary, Executive to pay premiums on such policies directly, and Company to reimburse Executive for each such payment within 14 days of receiving written notice from Executive of his having paid such
premiums, but not earlier than the Payment Date; and
	

 	
 	

 	
 	

(iii) To the extent Company reimbursement of premiums per (i) and (ii) above shall be taxable income to Executive, Executive shall receive full tax gross-up from the Company; and
	

 	
 	

 	
 	

(iv) Company to be responsible for benefit under "Death Benefit Only" Executive Life Insurance Plan (number 13 on Life Insurance Summary), as determined in accordance with the terms of such plan.

17

 
ATTACHMENT
TO SCHEDULE 2(C)

SUMMARY OF LIFE INSURANCE POLICIES 

	 
	 	CARRIER
	 	DEATH BENEFIT
	 	DATE ISSUED/

DATE LAPSED
	 	TERMS

	EXECUTIVE TERM LIFE INSURANCE/INDIVIDUAL POLICIES
	1.	 	Empire General	 	$	5 million	 	12/1/2003

12/1/2018	 	15
	2.	 	Ohio National	 	$	5 million	 	12/1/2003

12/1/2018	 	15
	3.	 	Protective	 	$	5 million	 	12/1/2003

12/1/2018	 	15
	4.	 	North American Company for Life and Health Insurance	 	$	5 million	 	4/17/2001

4/17/2016	 	15
	5.	 	North American Company for Life Insurance	 	$	5 million	 	4/17/2001

4/17/2016	 	15
	6.	 	North American Company for Life and Health Insurance	 	$	5 million	 	4/17/2001

4/17/2016	 	15
	7.	 	North American Company for Life and Health Insurance	 	$	5 million	 	4/17/2001

4/17/2016	 	15
	8.	 	North American Company for Life and Health Insurance	 	$	5 million	 	4/17/2001

4/17/2016	 	15
	9.	 	American General	 	$	5 million	 	6/1/2006

6/1/2026	 	20
	10.	 	Jefferson Pilot/

Lincoln National	 	$	5 million	 	6/1/2006

6/1/2026	 	20
	11.	 	ING Reliastar	 	$	5 million	 	6/1/2006

6/1/2026	 	20
	GROUP LIFE INSURANCE BENEFITS
	12.	 	MetLife (Company Owned)	 	$	50,000	 	 	 	 
	13.	 	Pacific Life (Company Owned)	 	$	250,000	 	 	 	 
	 	 	TOTAL COVERAGE	 	$	55,300,000	 	 	 	 

18

 
EXHIBIT
A 

Calculation
of Deferred Compensation Present Value 

	Date of Birth	 	5/17/1948	 
	Date of Termination	 	1/2/2007	 
	Age at Termination	 	58.58	 
	Actual Payment Date	 	7/3/2007	 
	Age at Receipt	 	59.0833	 
	Assumed most recent pay increase	 	3/1/2006	 
	Current Base Salary	 	$2,475,000	 
	Current Target Bonus	 	$3,000,000	 
	Most Recent Bonus	 	$3,000,000	 
	

 	
 	

 	
 
	Interest Rates	 	January 2, 2007	 
	 	 	
	 
	 	Oct. 2006 Lump Sum Rate (417(e))	 	4.85	%

	 
	 	 
	 	January 2, 2007
	 	 
	 	 

	(a)	 	Final Earning(1)	 	$	5,475,000	 	=	 	Current base plus most recent bonus (or target, if greater)
	(b)	 	Accrued Benefit at Termination	 	$	2,737,500	 	=	 	50% of (a)
	(c)	 	Offsets(2)	 	$	50,130	 	 	 	 
	(d)	 	Net Benefit	 	$	2,687,370	 	=	 	(b)-(c)
	(e)	 	Net Immediate Benefit	 	$	2,472,380	 	=	 	(d), reduced by 4% per year for each Immediate full year before age 62 payment is received
	(f)	 	Lump Sum Factor(3)	 	 	13.705993	 	 	 	 
	(G)	 	LUMP SUM BENEFIT AT 7/3/07	 	$	33,886,423	 	=	 	(e)*(f)

	(1)
	Final
earnings provided by Home Depot

	(2)
	Home
Depot has no other qualified or nonqualified pension plans covering the CEO. This is the GE qualified benefit payable at age 60. No actuarial adjustment was applied to this
benefit to produce an equivalent age 62 benefit because of the lack of details on the GE plan as well as the relatively small adjustment that would result. The GE nonqualified pension benefit was
forfeited at termination.

	(3)
	Calculated
using interest rate and mortality table mandated by IRS Code Section 417(e), as required by the plan document. The plan specifies to use the 30 year treasury
rate applicable to a distribution made during the second calendar month immediately preceding the calendar month in which the lump sum distribution is made. The 4.85% rate shown above is the
30 year treasury rate for the month of October 2006. 

19QuickLinks
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   Exhibit 10.38  

ROBERT L. NARDELLI

DEFERRED PAYMENT TRUST  

TABLE OF CONTENTS  

	 
	 	 
	 	Page

	SECTION 1	 	ESTABLISHMENT OF TRUST	 	 
	(a)	 	Initial Deposit	 	1
	(b)	 	Irrevocability	 	1
	(c)	 	Grantor Trust	 	1
	(d)	 	Trust Assets	 	1
	(e)	 	Additional Deposits	 	2
	(f)	 	Trustee Governing Document	 	2
	

SECTION 2	
 	

PAYMENTS TO THE EXECUTIVE OR HIS BENEFICIARIES	
 	

2
	(a)	 	Payment Schedule	 	2
	(b)	 	Benefit Entitlements	 	3
	(c)	 	Benefit Payments	 	3
	

SECTION 3	
 	

TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO TRUST BENEFICIARY WHEN THE COMPANY IS INSOLVENT	
 	

4
	(a)	 	Claims of Creditors	 	4
	(b)	 	Cessation of Benefit Payments	 	4
	(c)	 	Insolvency	 	4
	(d)	 	Recommencement of Payments	 	4
	

SECTION 4	
 	

PAYMENTS TO THE COMPANY	
 	

5
	

SECTION 5	
 	

INVESTMENT AUTHORITY	
 	

5
	(a)	 	Investment Authority	 	5
	(b)	 	Investment in Company Stock	 	5
	(c)	 	No Substitution of Assets	 	5
	(d)	 	Disposition of Income	 	5
	

SECTION 6	
 	

ACCOUNTING BY TRUSTEE	
 	

6
	

SECTION 7	
 	

RESPONSIBILITY OF TRUSTEE	
 	

6
	(a)	 	Standard of Care	 	6
	(b)	 	Indemnification	 	6
	(c)	 	Legal Counsel	 	6
	(d)	 	Agents	 	7
	(e)	 	Trustee Powers	 	7
	(f)	 	No Business Objective	 	7
	(g)	 	Force Majeure	 	7

i

 

	

SECTION 8	
 	

COMPENSATION AND EXPENSES OF TRUSTEE	
 	

7
	(a)	 	Taxes and Expenses	 	7
	(b)	 	Compensation	 	7
	

SECTION 9	
 	

RESIGNATION AND REMOVAL OF TRUSTEE	
 	

7
	(a)	 	Resignation	 	7
	(b)	 	Transfer of Assets	 	7
	(c)	 	Successor	 	7
	

SECTION 10	
 	

APPOINTMENT OF SUCCESSOR	
 	

7
	(a)	 	Appointment	 	7
	(b)	 	Limited Liability	 	8
	

SECTION 11	
 	

AMENDMENT OR TERMINATION	
 	

8
	(a)	 	Amendment	 	8
	(b)	 	Termination Without Consent	 	8
	(c)	 	Termination With Consent	 	8
	

SECTION 12	
 	

MISCELLANEOUS	
 	

8
	(a)	 	Survival	 	8
	(b)	 	No Assignment	 	8
	(c)	 	Applicable Law	 	8
	(d)	 	Headings	 	8
	(e)	 	Counterparts	 	8
	(f)	 	Manner of Direction	 	8
	(g)	 	Expense Paying Agent	 	9
	(h)	 	Successors and Assigns	 	9
	

SECTION 13	
 	

EFFECTIVE DATE	
 	

9

ii

  

ROBERT L. NARDELLI

DEFERRED PAYMENT TRUST  

        THIS TRUST AGREEMENT (the "AGREEMENT") is made on this            day of January 2007, by and between THE HOME DEPOT,
 INC., a Delaware
corporation ("COMPANY"), and THE NORTHERN TRUST COMPANY ("TRUSTEE"); 

        WHEREAS,
the Company has entered into a Separation Agreement with Robert L. Nardelli ("EXECUTIVE"), effective as of January 2, 2007 ("SEPARATION AGREEMENT"), providing for the
deferred payment of certain severance and other compensation in connection with the termination of his employment with the Company; 

        WHEREAS,
the Company has incurred liability under the terms of such Separation Agreement with respect to the Executive; 

        WHEREAS,
pursuant to the Separation Agreement, the Company wishes to establish a trust (the "TRUST"), to provide a source of funds to meet its liabilities under the Separation Agreement,
and to contribute to the Trust assets that shall be held therein, subject to the claims of the Company's creditors in the event of the Company's Insolvency, as herein defined, until paid to the
Executive or his beneficiaries in such manner and at such times as specified herein; and 

        WHEREAS,
it is the intention of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Separation Agreement as an unfunded plan
maintained for the purpose of providing deferred compensation for a select group of management or highly compensated employees for purposes of Title I of the Employee Retirement Income Security Act of
1974. 

        NOW,
THEREFORE, the parties do hereby establish the Trust and agree that the Trust shall be comprised, held and disposed of as follows: 

SECTION 1

ESTABLISHMENT OF TRUST  

        (a)   INITIAL
DEPOSIT. The Company shall make an initial deposit in trust with Trustee of (1) United States currency ("CASH") in the amount of $79,727,373 and
(2) 2,120,242 shares of Company Stock, which shall become the principal of the Trust to be held, administered and disposed of by Trustee as provided in this Trust Agreement. 

        (b)   IRREVOCABILITY.
The Trust hereby established shall be irrevocable. 

        (c)   GRANTOR
TRUST. The Trust is intended to be a grantor trust, of which the Company is the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1,
subtitle A of the Internal Revenue Code of 1986, as amended (the "CODE"), and shall be construed accordingly. 

        (d)   TRUST
ASSETS. The principal of the Trust and any income thereon shall be held separate and apart from other funds of the Company and shall be used exclusively for the
uses and purposes of the Executive (and his beneficiaries) and general creditors as herein set forth. The Executive and his beneficiaries shall have no preferred claim on, or any beneficial ownership
interest in, any assets of the Trust. Any rights created under the Separation Agreement and this Trust Agreement shall be mere unsecured contractual rights of the Executive and his beneficiaries
against the Company. Any assets held by the Trust will be subject to the claims of the Company's general creditors under federal and state law in the event of Insolvency, as defined in
Section 3(c) herein. The principal of the Trust and any income thereon ("REVOCATION AMOUNT") shall revert to the Company in the event that the Executive revokes his release of claims against
the Company as set forth in Section 7(b) of the Separation Agreement which revocation shall be certified in writing to the Trustee by the Company and 

1

 

upon
which certification the Trustee may conclusively rely. Any Unpaid Contractual Payments (as defined at Section 2(c)(2) hereof) held under the Trust will revert to the Company to the extent
that the Executive forfeits his rights in such assets pursuant to the provisions of Section 2(c)(2) hereof which shall be certified in a writing to the Trustee by the Company. Notwithstanding
any provision of this Trust Agreement to the contrary, the Trustee may conclusively rely on a Noncompliance Certification (defined below) from the Company to which the Trustee has not received an
Objection Notice (defined below) within twenty (20) business days thereafter or a Final Certification (defined below) received from the Company, as the case may be, stating that the Executive
has forfeited all or a portion of his Unpaid Contractual Payments (defined below) as set forth in Section 2(c)(2). Upon notice by the Company to the Trustee of a Direct Payment (defined below)
made to the Executive, or upon notice by the Company to the Trustee that the Company is entitled to a distribution ("EXCESS DEFERRED COMPENSATION DISTRIBUTION") from the Trust pursuant to
Section 2(e)(iv) of the Separation Agreement, the Trustee shall pay to the Company an amount ("REFUND") from the principal of the Trust equal to the amount of such Direct Payment or such
Excess Deferred Compensation Distribution, as the case may be. This Trust shall terminate after payment of the entire principal and all income thereon to the Executive or his beneficiaries or, to the
extent forfeited by the Executive or payable to the Company as a Refund, to the Company. 

        (e)   ADDITIONAL
DEPOSITS. The Company may at any time, or from time to time, make in its sole discretion additional deposits of Cash or other property to the Trust pursuant
to the Separation Agreement. The Trustee shall have no right to compel such additional deposits nor shall it be responsible for the amount of collection of any contributions to the Fund or for
determining whether such contributions are made in accordance with the Separation Agreement and such responsibility shall be borne solely by the Company. 

        (f)    TRUSTEE
GOVERNING DOCUMENT. The duties of the Trustee shall be governed solely by the terms of this Trust Agreement without reference to the terms of the Separation
Agreement. 

SECTION 2

PAYMENTS TO THE EXECUTIVE OR HIS BENEFICIARIES  

        (a)   PAYMENT
SCHEDULE. The Company, pursuant to its obligations under the Separation Agreement, has developed a Payment Schedule attached hereto as Schedule A, (the
"PAYMENT SCHEDULE") which sets forth the amounts, dates and form of payment payable to the Executive (or his beneficiaries) under the Separation Agreement. Prior to the date of payment thereof, the
Company shall instruct the Trustee as to the amount of the payment under Section 2(a)(iv) of the Separation Agreement (the "DEFERRED COMPENSATION AMOUNT") and the Trustee shall make
payment of such amount in accordance with the Payment Schedule. Except as provided at Section 2(c)(2) hereof and subject to the Refund provisions of Section 1(d) hereof, the Trustee shall make
such payments to the Executive (or his beneficiaries) in accordance with Schedule A, without further direction from the Company or any other person. The Company shall have the sole
responsibility for all tax withholding filings and reports, and the Company shall direct the Trustee and the Trustee shall prepare such filings and reports as directed by the Company. The Trustee
shall withhold such amounts from distributions with respect to applicable federal, state and local tax law pursuant to a written schedule of withholding amounts that the Company shall provide to the
Trustee. The Trustee shall deduct and withhold such amounts and transmit such amounts to the appropriate taxing authorities as directed by the Company. All amounts payable to the Executive shall be
payable to his beneficiaries if he shall die before payment is made. The Executive's beneficiary is set forth on Schedule B hereto. The Executive may change his beneficiaries at any time, and
from time to time, by delivering a written designation of beneficiaries in the form set forth in Schedule B, which designation upon receipt by the Trustee shall replace and supersede any
previous designation of beneficiaries by the Executive hereunder. In the case of the Executive's death, the Company shall certify in writing to the Trustee that the Executive has died 

2

 

and
that all remaining payments to be made under the Payment Schedule are to be made to the Executive's beneficiaries set forth on Schedule B. 

        (b)   BENEFIT
ENTITLEMENTS. The Executive and his beneficiaries shall be entitled to the benefits when payable hereunder without delay or recourse, except as set forth in
Section 2(c)(2), Section 3 and Section 8 of this Agreement. 

        (c)   BENEFIT
PAYMENTS. 

        (1)   The
Company, in its discretion, may make payment of benefits directly to the Executive (or his beneficiaries) as benefits become due under the terms of the Separation
Agreement (together with income thereon as provided under the Payment Schedule) ("DIRECT PAYMENTS"). Prior to the time
that amounts are payable to the Executive (or his beneficiaries), the Company shall notify the Trustee of its decision to pay benefits directly. In addition, if the principal of the Trust, and any
income thereon, is not sufficient to make payments of benefits in accordance with the terms of the Separation Agreement, the Company, at its discretion, shall make the balance of each such payment as
it falls due. Trustee shall notify the Company where principal and income are not sufficient to make a payment then due under the Payment Schedule. 

        (2)   The
foregoing provisions of this Section 2 to the contrary notwithstanding, the Trustee shall not make a payment (or payments) of the unpaid portion of the amount
set forth on the Payment Schedule that is scheduled for payment after July 3, 2007 (and all income thereon) ("UNPAID CONTRACTUAL PAYMENTS") in the event that, prior to the date on which an
installment of the Unpaid Contractual Payments is scheduled to be issued for payment to the Executive, the Trustee has received a written certification from the Company that the Executive is not in
compliance with the provisions of Section 3 (confidentiality, non-competition and non-solicitation covenants) and Section 4 (non-disparagement
covenant) of the Separation Agreement ("NONCOMPLIANCE CERTIFICATION"). In such event, the Trustee shall hold the Unpaid Contractual Payments amounts as principal under the Trust, together with income
accrued thereafter on such principal until such time as such payment is (or payments are) payable to the Executive or forfeited by the Executive as set forth in this Section 2(c)(2). The
Trustee shall have no duty to notify or otherwise inform the Executive that the Company has submitted a certification that the Executive is not in compliance with the provisions of Section 3
(confidentiality, non-competition and non-solicitation covenants) and Section 4 (non-disparagement covenant) of the Separation Agreement. If the Trustee does
not receive a written notice of objection to the Company Noncompliance Certif1ication from the Executive within twenty (20) business days after receiving such Noncompliance Certification from
the Company ("OBJECTION NOTICE"), then the Unpaid Contractual Payments shall be paid promptly to the Company from the Trust. If the Trustee receives an Objection Notice from the Executive within
twenty (20) business days after receiving such Noncompliance Certification from the Company, then the Trustee shall continue to hold the Unpaid Contractual Payments until the Trustee receives
the first to occur of ("FINAL CERTIFICATION"): (i) a joint written direction by the Company and the Executive or (ii) a certification from the Company containing a copy of the final
binding nonappealable decision of the arbitrator pursuant to Section 14(a) of the Separation Agreement, in either such case directing the Trustee to pay to the Executive or to pay to the
Company, as the case may be, all or a portion of the Unpaid Contractual Payments. Any portion of the Unpaid Contractual Payments not so directed for payment to the Company or to the Executive shall be
held by the Trustee and, subject to any subsequent Certifications and Notices in accordance with this Section 2(c)(2), thereafter paid to the Executive in accordance with the Payment Schedule.
Notwithstanding the foregoing, the Trustee may conclusively rely on any certifications given to the Trustee by the Company pursuant to this Section 2(c)(2) and shall have no duty to determine
whether any direction or order received by the Company is in compliance with the terms of the Separation Agreement or 

3

 

whether
any decision submitted to the Trustee by the Company is a final nonappealable decision of an arbitrator as set forth in the Separation Agreement. 

 
 

SECTION 3
  TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO TRUST BENEFICIARY
  WHEN THE COMPANY IS INSOLVENT    
    

        (a)   CLAIMS
OF CREDITORS. At all times during the continuance of this Trust, as provided in Section 1(d) hereof, the principal and income of the Trust held for the
benefit of the Executive (and his beneficiaries) shall be subject to claims of general creditors of the Company under federal and state law, as set forth below. 

        (1)   The
Board of Directors and the Chief Executive Officer (the "CEO") of the Company shall have the duty to inform the Trustee in writing of the Company's Insolvency. If a
person claiming to be a creditor of the Company alleges in writing to the Trustee that the Company has become Insolvent, the Trustee shall determine whether the Company is Insolvent and, pending such
determination, the Trustee shall discontinue payment of benefits in accordance with Section 3(b). 

        (2)   Unless
the Trustee has actual knowledge of the Company's Insolvency, or has received notice from the Company or a person claiming to be a creditor alleging that the
Company is Insolvent, the Trustee shall have no duty to inquire whether the Company is Insolvent. The Trustee may in all events rely on such evidence concerning the Company's solvency as may be
furnished to Trustee and that provides the Trustee with a reasonable basis for making a determination concerning the Company's solvency. In no event shall "actual knowledge" be deemed to include
knowledge of the Company's credit status held by banking officers or banking employees of The Northern Trust Company which has not been communicated to the administrative staff assigned to the Trust.
The Trustee may appoint an independent accounting, consulting or law firm to make any determination of solvency required by the Trustee under this Section 3. In such event, the Trustee may
conclusively rely upon the determination by such firm and shall be responsible only for the prudent selection of such firm. 

        (b)   CESSATION
OF BENEFIT PAYMENTS. If at any time the Board of Directors or the CEO of the Company notifies the Trustee or the Trustee has determined that the Company has
become Insolvent, the Trustee shall discontinue payments from the Trust to or on behalf of the Executive (or his beneficiaries). Further, the Trustee shall continue to hold the assets of the Trust in
trust for the benefit of the Company's general creditors until the Trustee receives a court order directing the disposition of such assets. Nothing in this Trust Agreement shall in any way diminish
any rights of the Executive or his beneficiaries to pursue their rights as general creditors of the Company with respect to benefits due under the Separation Agreement or otherwise. The Trustee shall
resume the payment of benefits to the Executive or his beneficiaries in accordance with Section 2 of this Trust Agreement only after the Trustee has determined that the Company is not Insolvent
(or is no longer Insolvent) or pursuant to an order from the U.S. Bankruptcy Court or other court of competent jurisdiction. 

        (c)   INSOLVENCY.
The Company shall be considered "INSOLVENT" for purposes of this Trust Agreement if the Company is (i) unable to pay its debts as they become due, or
(ii) subject to a pending proceeding as a debtor under the United States Bankruptcy Code. 

        (d)   RECOMMENCEMENT
OF PAYMENTS. Provided that there are sufficient assets, if Trustee discontinues the payment of benefits from the Trust pursuant to Section 3(b)
hereof and subsequently resumes such payments to the Executive (or his beneficiaries), the first payment following such discontinuance, to the extent not inconsistent with an order from the U.S.
Bankruptcy Court or other court of competent jurisdiction, shall include the aggregate amount of all payments due to the Executive or his beneficiaries under the Payment Schedule for the period of
such discontinuance, less 

4

 

the
aggregate amount of any payments made to the Executive or his beneficiaries directly by the Company in lieu of the payments provided for hereunder during any such period of discontinuance, all in
accordance with the Payment Schedule which, if necessary, shall be modified jointly by the Company and the Executive as necessary to comply with the provisions of this paragraph (d). 

SECTION 4

PAYMENTS TO THE COMPANY  

        Except as provided in Section 1(d) respecting any Refund or Revocation Amount, Section 2(c)(2) and Section 3 hereof, the Company shall have
no right or power to direct Trustee to return to the Company or to divert to others any of the Trust assets before all payment of benefits have been made to the Executive or his beneficiaries pursuant
to the terms of the Separation Agreement. 

SECTION 5

INVESTMENT AUTHORITY  

        (a)   INVESTMENT
AUTHORITY. Trustee shall have no responsibility for the investment and management of the assets of the Trust which shall be at the direction of the Company,
except as hereinafter provided. The Trustee shall act only upon receipt of written direction from the Company and shall have no liability to review or question any such directions. Trustee shall not
be liable for the acts or omissions of the Company or have any obligation to invest or otherwise manage any asset of the Trust. The Company shall not issue any direction to the Trustee that is in
violation of the terms of the Separation Agreement or this Agreement. The Trustee shall not make any investment review of, consider the propriety of holding or selling, or vote other than as directed
by the Company, any assets of the Trust except that if the Trustee shall not have received contrary instructions from the Company, the Trustee shall invest for short term purposes any cash consisting
of U.S. currency in a "money market" instrument offered by an affiliate of the Trustee for investment. The Company may engage the any affiliate of the Trustee as the Company's agent to provide broker,
transition or liquidation services in connection with the assets of the Trust or for any other reason, pursuant to a separate written agreement between the Company and the Trustee's affiliates,
Northern Trust Securities, Inc. 

        (b)   INVESTMENT
IN COMPANY STOCK. In no event may the Trustee invest in securities (including stock or rights to acquire stock) or obligations issued by the Company ("COMPANY
STOCK"). Notwithstanding the foregoing the Trustee shall hold (i) the shares of Company Stock deposited by the Company with the Trustee pursuant to Section 1(e) of this Agreement and any
dividends paid in Company Stock thereon (or shares issued by the Company or a successor of the Company in exchange for Company Stock pursuant to a merger, consolidation, recapitalization or other
similar transaction) without any duty to review or question such holding of Company Stock or (ii) a de minimis amount held in common investment
vehicles in which the Trustee invests at the direction of the Company. Notwithstanding anything in this Trust to the contrary, all rights associated with assets of the Trust (including, at the
direction of the Company, the rights to vote, tender or exchange Company Stock held in the Trust) shall be exercised by Trustee and shall in no event be exercisable by or rest with the Executive. All
dividends on Company Stock held in the Trust shall be held for the benefit of the Executive (and his beneficiaries) and paid to the Executive (or his beneficiaries) pursuant to the Payment Schedule. 

        (c)   SUBSTITUTION
OF ASSETS. The Company shall have the right at any time, and from time to time in its sole discretion, to substitute assets of equal fair market value for
any asset held by the Trust. 

        (d)   DISPOSITION
OF INCOME. During the term of the Trust, all income received by the Trust, net of expenses and taxes, shall be accumulated and reinvested. 

5

  

SECTION 6

ACCOUNTING BY TRUSTEE  

        Trustee shall keep accurate and detailed records of all investments, receipts, disbursements, and all other transactions required to be made, including such
specific records as shall be agreed upon in writing between the Company and the Trustee and all records necessary to carry out its responsibilities described in Section 3(b). Within
30 days following the close of each calendar year and within 30 days after the resignation of Trustee, Trustee shall deliver to the Company and the Executive a written account of its
administration of the Trust during such year or during the period from the close of the last preceding year to the date of such resignation, setting forth all investments, receipts, disbursements and
other transactions effected by it, including a description of all securities and investments purchased and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or
receivable being shown separately), and showing all cash, securities and other property held in the Trust at the end of such year or as of the date of such resignation, as the case may be. Upon the
expiration of 180 days from the date of filing such annual or other statement, the Trustee shall be released and discharged from any liability or accountability to anyone as respects the
propriety of its acts or transactions shown in such account, except with respect to any acts or transactions as to which the Company, within such 180 day period, shall file with the Trustee its
written disapproval. In the event such a disapproval is filed, and unless the matter is compromised by agreement between the Trustee and the Company, the Trustee shall file its statement covering the
period from the date of the last annual statement to which no objection was made in any court of competent jurisdiction for audit or adjudication. The Trustee may conclusively rely on determinations
of the Company of valuations for assets of the Trust for which the Trustee deems there to be no readily determinable fair market value. 

SECTION 7

RESPONSIBILITY OF TRUSTEE  

        (a)   STANDARD
OF CARE. Trustee shall act with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in like capacity
and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims, provided, however, that Trustee shall incur no liability to any person for any action
taken pursuant to a direction, request or approval given by the Company or its designees which is contemplated by, and in conformity with, the terms of this Trust and is given in writing by such
party. In the event of a dispute between the Company and a party, Trustee may apply to a court of competent jurisdiction to resolve the dispute. 

        (b)   INDEMNIFICATION.
The Company shall indemnify the Trustee from and against any and all claims, demands, losses, damages, expenses (including, by way of illustration and
not limitation, reasonable attorneys' fees and other legal and litigation costs), judgments and liabilities (collectively "Losses") arising from, out of, or in connection with (1) its provision
of services under this Trust Agreement or its status as Trustee hereunder, except to the extent such Losses have arisen directly from the Trustee's negligence in the performance of its specifically
allocated duties under the terms of this Agreement or its willful misconduct, or (2) the Trust's failure to qualify as a grantor trust, or (3) the Separation Agreement's failure to
qualify as a top-hat plan exempt from all or Parts 2, 3, and 4 of Title 1 of the Employee Retirement Income Security Act. The Trustee shall indemnify the Company and the Trust from and
against any and all claims, demands, losses, damages, expenses (including, by way of illustration and not limitation, reasonable attorneys' fees and other legal and litigation costs), judgments and
liabilities that have arisen directly from the Trustee's negligence in the performance of its specifically allocated duties under the terms of this Agreement or its willful misconduct. 

        (c)   LEGAL
COUNSEL. Trustee may consult with legal counsel (who may also be counsel for the Company generally) with respect to any of its duties or obligations hereunder. 

6

 

        (d)   AGENTS.
Trustee may hire agents, accountants, actuaries, investment advisors, financial consultants or other professionals to assist it in performing any of its duties
or obligations hereunder. 

        (e)   TRUSTEE
POWERS. Trustee shall have, without exclusion, all powers conferred on Trustees by applicable law, unless expressly provided otherwise herein. 

        (f)    NO
BUSINESS OBJECTIVE. Notwithstanding any powers granted to Trustee pursuant to this Trust Agreement or to applicable law, Trustee shall not have any power that could
give this Trust the objective of carrying on a business and dividing the gains therefrom, within the meaning of Section 301.7701-2 of the Procedure and Administrative Regulations
promulgated pursuant to the Internal Revenue Code. 

        (g)   FORCE
MAJEURE. The Trustee shall not be liable for any delay in performance, or non-performance, of any obligation hereunder to the extent that the same is
due to forces beyond the Trustee's reasonable control, including but not limited to delays, errors or interruptions caused by the Company or third parties; any industrial, juridical, governmental,
civil or military action; acts of terrorism, insurrection or revolution; nuclear fusion, fission or radiation; failure or fluctuation in electrical power, heat, light, air conditioning or
telecommunications equipment; or acts of God. 

SECTION 8

COMPENSATION AND EXPENSES OF TRUSTEE  

        (a)   TAXES
AND EXPENSES. Trustee shall pay out of the Trust Fund all real and personal property taxes, income taxes and other taxes of any and all kinds levied or assessed
under existing or future laws against the Trust Fund and shall reimburse the Company for any such taxes levied or assessed against it with respect to Trust assets. Brokerage fees, commissions, stock
transfer taxes and other charges and expenses attributable to any investment fund shall be charged to such investment fund. 

        (b)   COMPENSATION.
The Company shall pay all administrative and Trustee's fees and expenses. Such compensation and expenses if not paid by the Company within 60 days
of having received the Trustee's invoice for such fees and expenses shall be withdrawn by Trustee out of the Trust Fund. 

SECTION 9

RESIGNATION AND REMOVAL OF TRUSTEE  

        (a)   RESIGNATION.
Trustee may resign at any time by written notice to the Company, which shall be effective 90 days after receipt of such notice unless the Company and
Trustee agree otherwise. 

        (b)   TRANSFER
OF ASSETS. Upon resignation of Trustee and appointment of a successor Trustee, all assets shall subsequently be transferred to the successor Trustee. The
transfer shall be completed within 120 days after receipt of notice of resignation, unless the Company extends the time limit. The Company's consent to extension of the time limit shall not be
unreasonably withheld. 

        (c)   SUCCESSOR.
If Trustee resigns, a successor shall be appointed, in accordance with Section 10 hereof, by the effective date of resignation under
paragraph (a) of this Section 9. If no such appointment has been made, Trustee may apply to a court of competent jurisdiction for appointment of a successor or for instructions. All
expenses of Trustee in connection with the proceeding shall be allowed as administrative expenses of the Trust. 

SECTION 10

APPOINTMENT OF SUCCESSOR  

        (a)   APPOINTMENT.
If Trustee resigns in accordance with Section 9(a) hereof, the Company and the Executive shall jointly designate a bank trust department or other
financial institution that may be 

7

 

granted
corporate trustee powers under state law and having assets under trust in excess of one billion dollars ($1,000,000,000), as a successor to replace the Trustee upon resignation. The
appointment shall be effective when accepted in writing by the new Trustee, who shall have all of the rights and powers of the former Trustee, including ownership rights in the Trust assets. The
former Trustee shall execute any instrument necessary or reasonably requested by the Company or the successor Trustee to evidence the transfer. 

        (b)   LIMITED
LIABILITY. The successor Trustee need not examine the records and acts of any prior Trustee and may retain or dispose of existing Trust assets, subject to
Sections 6 and 7 hereof. The successor Trustee shall not be responsible for, and the Company shall indemnify and defend the successor Trustee from, any claim or liability resulting from any action or
inaction of any prior Trustee or from any other past event, or any condition existing at the time it becomes successor Trustee. 

SECTION 11

AMENDMENT OR TERMINATION  

        (a)   AMENDMENT.
This Trust Agreement may be amended by a written instrument executed by Trustee and the Company. Notwithstanding the foregoing, no such amendment shall
conflict with the terms of the Separation Agreement or shall make the Trust revocable. 

        (b)   TERMINATION
WITHOUT CONSENT. The Trust shall not terminate until the date on which there are no longer any assets held in the Trust or the Executive is no longer
entitled to benefits pursuant to the terms of the Separation Agreement. Upon termination of the Trust, in the event of a forfeiture of benefits by the Executive under the Separation Agreement, any
assets remaining in the Trust shall be returned to the Company. 

        (c)   TERMINATION
WITH CONSENT. Upon prior written approval of the Executive or his beneficiaries, the Company may terminate this Trust prior to the time all benefit payments
under the Separation Agreement have been made. Such approval shall be obtained and certified to by the Company, and the Trustee shall have no responsibility therefor. All assets in the Trust at
termination shall be paid to the Executive or, in the event of a forfeiture of benefits by the Executive under the Separation Agreement, returned to the Company. 

SECTION 12

MISCELLANEOUS  

        (a)   SURVIVAL.
Any provision of this Trust Agreement prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining
provisions hereof. 

        (b)   NO
ASSIGNMENT. Benefits payable to the Executive and his beneficiaries under this Trust Agreement may not be anticipated, assigned (either at law or in equity),
alienated, pledged, encumbered or subjected to attachment, garnishment, levy, execution or other legal or equitable process. 

        (c)   APPLICABLE
LAW. This Trust Agreement shall be governed by and construed in accordance with the laws of the State of Georgia. 

        (d)   HEADINGS.
The headings are solely for convenience and shall not be relied upon in construing any provisions hereof. 

        (e)   COUNTERPARTS.
This Trust Agreement may be executed in counterparts, and each counterpart shall be appended hereto. 

        (f)    MANNER
OF DIRECTION. The Company shall certify to the Trustee in writing the names of the senior executives acting from time to time on behalf of the Company hereunder,
upon which schedule of names that Trustee may rely exclusively to administer this Trust. Any action required or 

8

 

permitted
to be taken by the Company shall be by direction of one or more such designated senior executives of the Company authorized to take such action hereunder or such other designee as shall be
designated in accordance with Section 12(g). The Trustee shall have no responsibility for any action taken by it in accordance with any direction it reasonably believes to have been given as
provided above. Direction of the Company may be given to the Trustee by telephone, letter, telex, fax SWIFT, other electronic or electro-mechanical means or by other methods as the parties may agree
from time to time. Notwithstanding anything herein to the contrary, the Company may delegate any of its responsibilities hereunder to a representative by giving to the Trustee in writing a letter
which identifies the representative and sets forth the list of its responsibilities under this Agreement that it has authorized the representative to carry out. 

        (g)   EXPENSE
PAYING AGENT. In making payments to service providers pursuant to authorized directions, the Company acknowledges that the Trustee is acting as paying agent, and
not as the payor, for tax information reporting and withholding purposes. 

        (h)   SUCCESSORS
AND ASSIGNS. This Agreement shall inure to the benefit of, and be binding upon, each of the parties and their respective successors and assigns. 

SECTION 13

EFFECTIVE DATE  

        The effective date of this Trust Agreement shall be the date of this Agreement first set forth above. 

[Signature
Pages Follow this Page] 

9

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Trust Agreement as of the date first above written. 

	

 	
 	

THE COMPANY:
 THE HOME DEPOT, INC.
	

 	
 	

 	

 	

 
	 	 	By:	/s/  REBECCA I. FLICK      
 Rebecca I. Flick
	 	 	 	Title:	Treasurer

	

 	
 	
TRUSTEE:
 THE NORTHERN TRUST COMPANY
	

 	
 	

 	

 	

 
	 	 	By:	/s/  ROBERT DRATHS      
 Robert Draths
	 	 	 	Title:	Vice President

10

 
  
 

    SCHEDULE A    
    

 
  PAYMENT SCHEDULE    
    

	DATE OF DISTRIBUTION TO THE EXECUTIVE
 
	 	AMOUNT
	 	FORM OF PAYMENT

	The earlier of July 3, 2007 or the date of the Executive's death	 	$28,771,459 plus all proceeds of Company Stock, plus all income accrued thereon	 	Cash
	

The earlier of July 3, 2007 or the date of the Executive's death	
 	

2,120,242 shares of Company Stock reduced by the number of shares of Company Stock sold before such date, plus all dividends thereon	
 	

Company Stock

Cash for dividends (or Company Stock if dividends are paid to the Trustee in Company Stock)
	

July 3, 2007	
 	

Deferred Compensation Amount	
 	

Cash
	
Unpaid Contractual Payments
	

The earlier of January 2, 2008 (subject to postponement or forfeiture as is determined pursuant to Section 2(c)(2) of the Trust Agreement)	
 	

$4,434,750 plus one-fourth of all income accrued through the date of payment on the undistributed principal then held by the Trustee in account number 22-66969	
 	

Cash
	

The earlier of January 2, 2009 (subject to postponement or forfeiture as is determined pursuant to Section 2(c)(2) of the Trust Agreement)	
 	

$4,434,750 plus two-thirds of all income accrued through the date of payment on the undistributed principal then held by the Trustee in account number 22-66969	
 	

Cash
	

The earlier of January 2, 2010 (subject to postponement or forfeiture as is determined pursuant to Section 2(c)(2) of the Trust Agreement)	
 	

$4,434,750 plus one-half of all income accrued through the date of payment on the undistributed principal then held by the Trustee in account number 22-66969	
 	

Cash
	

The earlier of January 2, 2011 (subject to postponement or forfeiture as is determined pursuant to Section 2(c)(2) of the Trust Agreement)	
 	

The entire undistributed principal together with all income accrued thereon through the date of payment in account number 22-66969	
 	

Cash

11

 

        Three weeks prior to making the distributions described above, the Company shall provide the Trustee with the following information: 

	1.
	Name 
	2.
	SS
# 
	3.
	Address 
	4.
	Taxable
$ Amount 
	5.
	Non-Taxable
$ Amount 
	6.
	Exempt
from FICA withholding 
	7.
	Federal
Withholdings 

—Marital
Status 

—Additional
Flat Amount 

—Withhold
an Exact Amount 

—%
only 

	8.
	State
Withholdings 

—State

—Marital
Status 

—Additional
Flat Amount 

—Withhold
an Exact Amount 

—%
only 

	9.
	Check
or Wire 

—Wire
instructions 

12

 

 
 

SCHEDULE B
  DESIGNATION OF THE EXECUTIVE'S BENEFICIARIES    
    

PRIMARY BENEFICIARIES  

        If the Executive shall die prior to receipt of all amounts payable to him under the Trust, all Trust benefits shall be paid to the following beneficiaries: 

        [Insert
names of beneficiaries, percentages Trust allocable to each such beneficiary and relationship] 

	NAME
 
	 	PERCENTAGE/FRACTION

OF TRUST
	 	RELATIONSHIP TO THE EXECUTIVE

	THE LEGAL REPRESENTATIVE OF THE EXECUTIVE'S ESTATE	 	100%	 	N/A

SECONDARY BENEFICIARIES  

        If no primary beneficiary, above, survives the Executive by fifteen (15) days or, if such primary beneficiary is a trust such trust is not then in
existence, the following beneficiaries shall be entitled to the Executive's benefits under the Trust: 

        [Insert
names of beneficiaries, percentages Trust allocable to each such beneficiary and relationship] 

	NAME
 
	 	PERCENTAGE/FRACTION

OFTRUST
	 	RELATIONSHIP TO THE EXECUTIVE

	N/A	 	 	 	 

13

QuickLinks

SECTION 3 TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO TRUST BENEFICIARY WHEN THE COMPANY IS INSOLVENT

SCHEDULE A

PAYMENT SCHEDULE

SCHEDULE B DESIGNATION OF THE EXECUTIVE'S BENEFICIARIES

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