Document:

[Performance
Vested Option]

THE HOME
DEPOT, INC.

NONQUALIFIED
STOCK OPTION

THE HOME DEPOT, INC. 2005 OMNIBUS
STOCK INCENTIVE PLAN

	
  GRANTED TO: <NAME>

  	
   

  	
  GRANT DATE:

  <GRANT DATE>

  	
   

  	
  NUMBER OF SHARES OF THE HOME DEPOT, INC. COMMON
  STOCK: <OPTIONS GRANTED>

  	
   

  	
  EXERCISE PRICE PER SHARE: <OPTION PRICE>

  
	
  Social Security #: <SSN>

  	
   

  	
  LATEST EXP. DATE:

  <10TH ANNIVERSARY OF GRANT DATE>

  	
   

  	
   

  	
   

  	
   

  

 

The Company
recognizes the value of your service as a key employee of the Company and its
subsidiaries and has awarded you this nonqualified stock option under the Plan,
subject to the following terms and conditions. 
Capitalized terms shall have the meanings set forth in Section 11.

1.             Award.  The Company hereby grants you a nonqualified
stock option, as of the Grant Date specified above, to purchase from the
Company the above-stated number of shares of the Company’s Common Stock, $.05
par value, at the Exercise Price set forth in Section 2.

2.             Exercise Price.  The
Exercise Price for the Option shares is $              
per share, which is the Closing Stock Price on the Grant Date.

3.               Vesting and Exercise Period.

(a)           Performance
Vesting.  The Option shall
vest and become exercisable in full on the later of: (i) the Target Price Date;
or (ii) the first anniversary of the Grant Date.

(b)           Death,
Disability, Retirement.  Unless
previously forfeited, Option shares that have not vested as of the date of your
Retirement Eligibility, or your death or Disability at any time, shall continue
to vest according to the vesting schedule set forth in Section 3(a) and, if
vested before the fifth anniversary of the Grant Date, shall remain exercisable
through the Latest Expiration Date; provided, that in the event your employment
ends due to your death or Disability before Retirement Eligibility, the Option
shares shall remain exercisable only through the earlier of: (i) the first
anniversary of the later of the vesting date or your employment termination
date; or (ii) the date the Option expires in accordance with Section 4.

4.             Expiration.  The Option
shall expire and be forfeited on the earlier of: (i) the date of termination of
your employment with the Company and its subsidiaries for any reason other than
Retirement Eligibility, death or Disability, or three months thereafter if the Option
was vested on your employment termination date; or (ii) the fifth anniversary
of the Grant Date if the Target Price Date has not occurred; [OPTIONAL: or  (iii) Discharge for Cause or violation of any
of the confidentiality, non-competition or non-solicitation provisions of Sections
8 and 9 at any time, including during any continued vesting period provided by
Section 3;] or (iv) the Latest Expiration Date. 
In no event may the Option be exercised after the Latest Expiration
Date.

5.             Method of Exercise.  Once vested, the Option may be
exercised at any time before expiration, in whole or in part, but in no event
with respect to a fractional share.  Exercise
shall be by notice of exercise to the Company, specifying the number of shares
to be purchased, the Exercise Price for each share and the aggregate Exercise Price
for all shares being purchased under said notice.  The notice shall be accompanied by payment of
the aggregate Exercise Price for the number of shares purchased and any
applicable withholding taxes.  Such
exercise shall be effective upon the actual receipt of such payment and notice
to the Company.  The aggregate Exercise Price
shall be paid by check payable to the order of the Company, or shares of Common
Stock of the Company, the fair market value of which at the time of such
exercise is equal to the aggregate Exercise Price (or portion thereof to be
paid with previously owned Common Stock). 
Payment of the Exercise Price in shares of Common Stock shall be made by
delivering properly endorsed stock certificates to the Company or otherwise
causing such Common Stock to be transferred to the account of the Company,
either physically or through 

 

 1
 

 

attestation.  In addition, the aggregate Exercise Price for
all shares purchased pursuant to an exercise of the Option may be paid from the
proceeds of sale through a bank or broker on the date of exercise of some or
all of the shares to which the exercise relates.  There shall be furnished with each notice of
the exercise of any portion of the Option such documents as the Company in its
discretion may deem necessary to ensure compliance with applicable rules and
regulations of any stock exchange or governmental authority.  No rights or privileges of a stockholder of
the Company in respect to such shares issuable upon the exercise of any part of
the Option shall accrue to you unless and until certificates representing such
shares have been registered in your name.  
The Company shall make reasonable efforts to comply with all applicable
federal and state securities laws and other applicable laws; provided, however,
that notwithstanding any other provision of this Option, the Option shall not
be exercisable if the exercise thereof would result in a violation of any law.

6.             Nontransferability.  Except as otherwise provided in
the Plan, the Option shall not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner, other than by will or under the laws
of descent and distribution, whether by the operation of law or otherwise.  An option may be exercised, during your
lifetime, only by you or your legal representative.  Upon any attempt to do anything prohibited by
this section, the Option shall immediately become null and void.

7.             Withholding.  You are responsible for all applicable federal,
state and local income and employment taxes (including taxes of any foreign
jurisdiction) which the Company is required to withhold at any time with
respect to the Option to satisfy its minimum statutory withholding requirements.  Such payment shall be made in full, at your
election, in cash or check, by withholding from your next normal payroll check,
or by the tender of shares of the Company’s Common Stock (including shares then
purchased under this Award).   Shares
tendered as payment of required withholding shall be valued at the Closing Stock
Price on the date such withholding obligation arises.

[OPTIONAL:        8.             Confidential Information.  You acknowledge
that through your employment with the Company that you have acquired and had
access to the Company’s confidential and proprietary business information and
trade secrets.  You agree that the
Company may prevent the use or disclosure of its confidential information and
proprietary business information and trade secrets and acknowledges that the
Company has taken all reasonable steps necessary to protect the secrecy of the
information. You agree that you have not and in the future will not use or
disclose to any third party Confidential Information, unless compelled by law
and after notice to the Company.

[OPTIONAL (NON-LEGAL):           9.   Non-Competition
and Non-Solicitation.  You
agree that you will not, while
you are employed by the Company or any of its subsidiaries, and for a
period of 24 months subsequent to the termination of such employment, enter
into or maintain an employment or contractual relationship, either directly or
indirectly, to provide services to a Competitor of substantially the same
nature as you provided to the Company or its subsidiaries.  In the event you wish to enter into any
relationship or employment before the end of the above-referenced 24 month
period which would be covered by the above non-compete provision, you agree to
request written permission from the Company’s Executive Vice President, Human
Resources before entering any such relationship or employment. The Company may
approve or not approve of the relationship or employment at its absolute
discretion. You agree that while you are
employed by the Company or any of its subsidiaries, and for a period of 36
months subsequent to the termination of your employment, you will not directly
or indirectly solicit any person who is an employee of the Company to terminate
his or her relationship with the Company without prior written approval from the
Company’s Executive Vice President, Human Resources.]

[OPTIONAL (LEGAL):      9.  Non-Competition
and Non-Solicitation.  The
Company shall not limit your rights to be employed by or engaged in any
business or other activities except as specifically set forth herein. You
acknowledge that during your employment with the Company, you have had access
to and acquired the Company’s privileged and Confidential Information on a very
wide range of issues and subject matter of concern to the Company, and that it would be impossible for you to
provide legal services or advice to a Competitor on the great majority of
subjects without creating a conflict of interest with respect to the Company as
your former client by using, relying on or disclosing this Confidential
Information in violation of your ethical obligations referred to above.  You agree
that given these circumstances it is reasonable that while you are employed by the Company or any
of its subsidiaries, and for 24
months subsequent to the termination of your employment, you will not provide
legal services or advice, either directly or indirectly, to any Competitor without

 

 2
 

 

the prior written consent
of the Company, regardless of whether the
services are provided through a direct employment or contractual relationship
with a Competitor or through a law firm, consulting firm, or any other
entity that provides legal services or advice to a Competitor of the Company.
Nothing in this subsection shall prohibit you from working for a law firm,
consulting firm, or any other entity that represents or advises a Competitor so
long as you personally provide no services or advice to such competitor, or to
other persons working within that entity with respect to such Competitor, before
the end of the above-referenced 24 month period.   In the event you wish to enter into any
relationship or employment before the end of the above-referenced 24 month
period  which would be covered by the
above non-compete and/or non-disclosure or conflict of interest provisions, you
agree to request written consent and a waiver of the aforementioned conflict of
interest from the Company’s General Counsel before entering any such
relationship or employment. The Company may consent or not consent to the
relationship or employment at its absolute discretion.  Alternatively, in the event that you believe
that such new relationship or employment, despite being with or for a Competitor,
is not with respect to any matter that is substantially related to any work
done for the Company and therefore does not implicate the conflict of interest
provisions, or otherwise does not present a situation in which you would use
Confidential Information in such a way as to benefit a person other than the
Company, you agree to inform the Company’s General Counsel of the basis for
that conclusion and to request the Company’s agreement.  The Company may reasonably request further
information, but will not unreasonably withhold its agreement to such a request
by you.  You further agree that while you are employed by the Company or any
of its subsidiaries, and for a period of 36 months subsequent to the
termination of your employment, you will not directly or indirectly solicit any
person who is an employee of the Company to terminate his or her relationship
with the Company without prior written approval from the Company’s Executive
Vice President, Human Resources.]

10.      
Miscellaneous

(a)           Disclaimer of Rights.  Nothing contained herein shall constitute an
obligation for continued employment.

(b)           Limitation of Actions.  Any lawsuit with respect to any matter
arising out of or relating to this Award must be filed no later than one (1)
year after the earlier of the date the claim arises or the date the Company
provides you notice of denial of your claim.

(c)           Severability.  If any term, provision, covenant or
restriction contained herein is held by a court or a federal regulatory agency
of competent jurisdiction to be invalid, void or unenforceable, the remainder
of the terms, provisions, covenants and restrictions contained herein shall
remain in full force and effect, and shall in no way be affected, impaired or
invalidated.

(d)           Offset.  The Company may deduct from amounts
otherwise payable under this Award all amounts owed by you to the Company and
its affiliates to the maximum extent permitted by applicable law.

(e)           Controlling Law.  The Option shall be construed, interpreted
and applied in accordance with the law of the State of Delaware, without giving
effect to the choice of law provisions thereof. 
You agree to irrevocably submit
any dispute arising out of or relating to this Option to the exclusive
concurrent jurisdiction of the state and federal courts located in
Delaware.  You also irrevocably waive, to
the fullest extent permitted by applicable law, any objection you may now or
hereafter have to the laying of venue of any such dispute brought in such court
or any defense of inconvenient forum for the maintenance of such dispute, and
you agree to accept service of legal process from the courts of Delaware.

(f)            Terms of Plan.  The Option is subject to the terms and conditions
set forth in the Plan, which are incorporated into and shall be deemed to be a
part of this Option, without regard to whether such terms and conditions
(including, for example, provisions relating to certain changes in
capitalization of the Company) are otherwise set forth in this Option. In the
event that there is any inconsistency between the provisions of this Option and
of the Plan, the provisions of the Plan shall govern.

11.           Definitions.  As used in this Option, the following
terms shall be defined as set forth below:

(a)           “Closing Stock Price” means, as of any
date, the closing stock price for the Company’s 

 

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Common Stock on the New York Stock Exchange, and if
the New York Stock Exchange is not open for trading on such date, the closing stock
price on the immediately preceding date when the market is open for trading.

(b)           “Company” means The Home Depot, Inc., a
Delaware corporation, with its corporate headquarters located at 2455 Paces
Ferry Road, Atlanta, Georgia  30339.

[OPTIONAL:  (c)   “Competitor”
means any company or entity engaged in any way in a business that competes
directly or indirectly with the Company, its parents, subsidiaries, affiliates
or related entities, in the United States, Canada, Puerto Rico, Mexico, China,
or any other location in which the Company, its parents, subsidiaries,
affiliates or related entities conduct business before your employment
termination date; businesses that compete with the Company specifically
include, but are not limited to, the following entities and each of their
subsidiaries, affiliates, assigns, or successors in interest: [INSERT LIST OF COMPETITORS HERE] .]

[OPTIONAL:   (d)  “Confidential
Information” shall include any data or information that is
valuable to the Company and not generally known to competitors of the Company
or other outsiders, regardless of whether the confidential information is in
printed, written or electronic form, retained in your memory or has been
compiled or created by you, including but is not limited to technical, financial,
personnel, staffing, payroll, computer systems, marketing, advertising,
merchandising, product, vendor, customer or store planning data, trade secrets,
or other information similar to the foregoing.]

[OPTIONAL:   (e)  “Discharge for Cause” means the
involuntary termination of your employment with the Company and its
subsidiaries or a successor entity because of an event involving moral
turpitude or dishonesty, a gross failure or negligence on your part in
performing your expected duties, a violation of the Company’s substance abuse or
compliance policies, or willful misconduct or action by you that is damaging or
detrimental to the Company.  A
determination by the Company that a termination is a Discharge for Cause will
be conclusive and binding.]

(f)            “Disability” means termination of your
employment with the Company and its subsidiaries due to your inability to
substantially perform your employment duties with the Company and its
subsidiaries, with reasonable accommodation, as evidenced by a certificate
signed either by a physician mutually acceptable to you and the Company or, if we
cannot agree upon a physician, by a physician selected by agreement of a
physician designated by the Company and a physician designated by you;
provided, however, that if such physicians cannot agree upon a third physician
within thirty (30) days, such third physician shall be designated by the
American Arbitration Association.

(g)          
“Exercise Price” means the
exercise price for the Option shares, as set forth in Section 2.

(h)           “Grant Date” means the date of grant of
the Option as set forth above.

(i)            “Latest Expiration Date” means the tenth
anniversary of the Grant Date.

(j)            “Option” means the nonqualified stock
option granted herein.

(k)           “Plan” means the Company’s 2005 Omnibus
Stock Incentive Plan, as amended.

(l)            Retirement Eligibility” means attainment
of age 60 with at least five (5) years of continuous service with the Company
and its subsidiaries.

(m)          Target Price Date” means the first
date, on or before the fifth anniversary of the Grant Date, on which the
Closing Stock Price has been equal to or greater than 125% of the Exercise
Price for thirty (30) consecutive trading days.

*** *** *** ***
*** *** *** *** ***

 

 4[Mexico]

THE HOME DEPOT, INC.

2005 OMNIBUS STOCK
INCENTIVE PLAN

PERFORMANCE SHARE
AWARD

THIS
PERFORMANCE SHARE AWARD is made to                    
on this the     day of           ,
     (“Grant Date”) by THE HOME DEPOT, INC., a Delaware
corporation, with corporate headquarters located at 2455 Paces Ferry Road,
Atlanta, Georgia  30339.

The Company
recognizes the value of your service as a key employee of Asociados Home Depot,
S.A. de C.V. and has granted you this performance share award under the Plan,
subject to the following terms and conditions. 
Capitalized terms shall have the meanings set forth in Section 13.

You hereby
acknowledge that the relationship between the Company and you as a consequence
of the Plan is different and apart from your employment relationship with
Asociados Home Depot, S.A. de C.V.  Being
an employee of Asociados Home Depot, S.A. de C.V. makes you eligible to
participate in the Plan but it does not commit Asociados Home Depot, S.A. de
C.V. to provide any particular benefit under the Plan.

1.             Award.
Subject to the conditions set forth herein, the Company hereby grants to you,
as of the Grant Date specified above, a Target Award of            
Performance Shares and a Maximum Award of            
Performance Shares, which may be earned in accordance with Section 2.

2.             Performance
Vesting.  Subject to
Sections 4, 5 and 6, the Company shall deliver to you one share of Common Stock
for each whole Performance Share that is earned in accordance with the
following schedule, based on the percentile ranking of the Company’s TSR for
the Performance Period relative to the TSR of the S&P 500 for the
Performance Period:

	
  Company’s Relative

  TSR Percentile Ranking

  	
   

  	
  Percentage of Target Award

  Performance Shares Earned

  
	
  Below Threshold:

  	
   

  	
  Below 40th

  	
   

  	
  0%

  
	
  Threshold:

  	
   

  	
  40th

  	
   

  	
  50%

  
	
  Target:

  	
   

  	
  50th

  	
   

  	
  100%

  
	
  Maximum:

  	
   

  	
  100th

  	
   

  	
  300%

  

 

If the Company’s relative
TSR ranking is between the percentile rankings listed above, the percentage of
the Target Award shall be interpolated, as set forth on Schedule A.  The percentile ranking is the percentage of
S&P 500 companies with TSR for the Performance that is less than or equal
to the Company’s TSR.  If the Company’s
TSR is the same as another company’s TSR, the Company shall be treated as
having the higher TSR.  The percentile
ranking shall be rounded to the nearest whole percentage, with (.50) rounded
up.

3.             Delivery
of Shares.  The number of
shares of Common Stock that you earn under Section 2 will be delivered to you
as soon as administratively practicable after the end of the Performance
Period.  Before such delivery, the
Committee shall certify in writing the number of Performance Shares that you
have earned.  No fractional shares will
be delivered pursuant to this Award and fractional shares shall be rounded
down.

4.             Employment
Termination.  Except as
provided in Section 5, if your employment with Asociados Home Depot, S.A. de
C.V. or its affiliates terminates before the end of the Performance Period,
this Performance Share Award shall be forfeited on the date of such
termination.

5.             Death,
Disability or Retirement. 
If your employment with Asociados Home Depot, S.A. de C.V. or its
affiliates terminates during the Performance Period, because of your death,
Disability or retirement, in each case at or after Retirement Eligibility, you
will be entitled to all of the Performance Shares earned in accordance with
Section 2, determined at the end of the Performance Period. If your employment
with Asociados Home Depot, S.A. de C.V. or its affiliates terminates during the
Performance Period due to your death or Disability before Retirement
Eligibility, you will be entitled to a prorated portion of the Performance Shares
earned in accordance with Section 2, determined at the end of the Performance
Period and based on the ratio of the number of days you are employed during the
Performance Period to the total number of days in the Performance Period.  Any payments due on your death shall be paid
to your estate as soon as administratively practicable after the end of the
Performance Period. [OPTIONAL:
Notwithstanding the foregoing, the Award shall be forfeited on the date of your
Discharge for Cause during the Performance Period, or upon your violation of
any of the confidentiality, non-competition or non-solicitation provisions of
Sections 10 and 11.]

6. [OPTIONAL:  Change in
Control.  Unless
previously forfeited, the Award shall vest upon the occurrence of a Change in
Control in that number of Performance Shares determined as follows: (i) the
number of Performance Shares that would have been earned under Section 2
treating the date of the Change in Control as the last day of the Performance
Period and prorating the Award based on the ratio of the number of days during
the Performance Period before the Change in Control to the total number of days
in the Performance Period absent such Change in Control; plus (ii) the number
of Performance Shares representing the Target Award and prorating the Target
Award based on the ratio of the number of days during the Performance Period
after the Change in Control to the total number of days in the Performance
Period absent such Change in Control.   As
soon as administratively practicable after the date of the Change in Control,
the Company shall deliver to you one share of Common Stock for each such vested
Performance Shares, which payment shall be in lieu of any payment under Section
2.

7.             Transferability.  The Performance Shares shall not be sold,
pledged, assigned, hypothecated, transferred or disposed of in any manner,
whether by the operation of law or otherwise. 
Any attempted transfer of the Performance Shares prohibited by this
Section 7 shall be null and void.

8.             Adjustments.  The Performance Shares shall be subject to
adjustment or substitution in accordance with Section 11 of the Plan.

9.             Withholding.  You are responsible for all applicable
federal, state and local income and employment taxes (including taxes of any
foreign jurisdiction) which the Company is required to withhold at any time
with respect to the Performance Shares to satisfy its minimum statutory
withholding requirements.  Such payment
shall be made in full at your election, in cash or check, by withholding from
your next normal payroll check, or by the tender of shares of Common Stock
payable under this Award.  Shares of
Common Stock tendered as payment of required withholding shall be valued at the
closing price per share of Common Stock on the date such withholding obligation
arises.

10.           [OPTIONAL:  Confidential
Information.  You acknowledge that through your employment with Asociados
Home Depot, S.A. de C.V. or its affiliates that
you have acquired and had access to the Company’s confidential and proprietary
business information and trade secrets. 
You agree that the Company may prevent the use or disclosure of its
confidential information and proprietary business information and trade secrets
and acknowledges that the Company has taken all reasonable steps necessary to
protect the secrecy of the information. You agree that you have not and in the
future will not use or disclose to any third party Confidential Information,
unless compelled by law and after notice to the Company.]

11.           [OPTIONAL
(NON-LEGAL):  Non-Competition and
Non-Solicitation.  In
consideration for this Award, you agree that you will not, while you are
employed by Asociados Home Depot, S.A. de C.V.

or its affiliates, and
for a period of 24 months subsequent to the termination of such employment,
enter into or maintain an employment or contractual relationship, either
directly or indirectly, to provide services to a Competitor of substantially
the same nature as you provided to the Company or its subsidiaries.  In the event you wish to enter into any relationship
or employment before the end of the above-referenced 24 month period which
would be covered by the above non-compete provision, you agree to request
written permission from the Company’s Executive Vice President, Human Resources
before entering any such relationship or employment. The Company may approve or
not approve of the relationship or employment at its absolute discretion. You
agree that while you are employed by the Company or any of its subsidiaries,
and for a period of 36 months subsequent to the termination of your employment,
you will not directly or indirectly solicit any person who is an employee of
the Company to terminate his or her relationship with the Company without prior
written approval from the Company’s Executive Vice President, Human Resources.]

11.           [OPTIONAL
(LEGAL):   Non-Competition and Non-Solicitation.  The Company shall not limit your rights to be
employed by or engaged in any business or other activities except as
specifically set forth herein. You acknowledge that during your employment with
Asociados Home Depot, S.A. de C.V. or its affiliates, you have had access to
and acquired the Company’s privileged and Confidential Information on a very
wide range of issues and subject matter of concern to the Company, and that it would be impossible for you to
provide legal services or advice to a Competitor on the great majority of
subjects without creating a conflict of interest with respect to the Company as
your former client by using, relying on or disclosing this Confidential
Information in violation of your ethical obligations referred to above.  You agree
that given these circumstances, and in consideration for this Award, it is
reasonable that while you are employed by Asociados Home Depot, S.A. de
C.V. or its affiliates, and for 24 months
subsequent to the termination of your employment, you will not provide legal
services or advice, either directly or indirectly, to any Competitor without
the prior written consent of the Company,
regardless of whether the services are provided through a direct employment or
contractual relationship with a Competitor or through a law firm,
consulting firm, or any other entity that provides legal services or advice to
a Competitor of the Company. Nothing in this subsection shall prohibit you from
working for a law firm, consulting firm, or any other entity that represents or
advises a Competitor so long as you personally provide no services or advice to
such competitor, or to other persons working within that entity with respect to
such Competitor, before the end of the above-referenced 24 month period.   In the event you wish to enter into any
relationship or employment before the end of the above-referenced 24 month
period  which would be covered by the
above non-compete and/or non-disclosure or conflict of interest provisions, you
agree to request written consent and a waiver of the aforementioned conflict of
interest from the Company’s General Counsel before entering any such
relationship or employment. The Company may consent or not consent to the
relationship or employment at its absolute discretion.  Alternatively, in the event that you believe
that such new relationship or employment, despite being with or for a
Competitor, is not with respect to any matter that is substantially related to
any work done for the Company and therefore does not implicate the conflict of
interest provisions, or otherwise does not present a situation in which you
would use Confidential Information in such a way as to benefit a person other
than the Company, you agree to inform the Company’s General Counsel of the
basis for that conclusion and to request the Company’s agreement.  The Company may reasonably request further
information, but will not unreasonably withhold its agreement to such a request
by you.  You further agree that while you
are employed by Asociados Home Depot, S.A. de C.V. or its affiliates, and for a
period of 36 months subsequent to the termination of your employment, you will
not directly or indirectly solicit any person who is an employee of the Company
and its subsidiaries to terminate his or her relationship with the Company
without prior written approval from the Company’s Executive Vice President,
Human Resources.]

12.           Miscellaneous

(a)           Disclaimer of Rights.  Nothing contained herein shall constitute an
obligation for continued employment.

(b)           Rights Unsecured.  You shall have only the Company’s unfunded,
unsecured promise to pay pursuant to the terms of this Award.  Your rights shall be that of an unsecured
general creditor of the Company and you shall not have any security interest in
any assets of the Company.

(c)           Adjustment for Dividends.  Upon the payment of any cash dividend on
shares of common stock of the Company before the issuance of a stock
certificate representing the earned Award, the number of performance shares
shall be increased by the number obtained by dividing (x) the aggregate amount
of the dividend that would be payable if each performance share were issued and
outstanding and entitled to dividends on the dividend payment date, by (y) the
closing stock price of the common stock on the dividend payment date. The
number of performance shares shall also be entitled to such adjustments as are
determined by the Committee under Section 11 of the Plan.]

(b)           Limitation of Actions.  Any lawsuit with respect to any matter
arising out of or relating to this Award must be filed no later than one (1)
year after the earlier of the date the claim arises or the date the Company
provides you notice of denial of your claim.

(c)           Offset.  The Company may deduct from amounts otherwise payable under this
Award all amounts owed by you to the Company and its affiliates to the maximum
extent permitted by applicable law.

(d)           Terms of Plan.  The Award is subject to the terms and
conditions set forth in the Plan, which are incorporated into and shall be
deemed to be a part of this Award, without regard to whether such terms and
conditions (including, for example, provisions relating to certain changes in
capitalization of the Company) are otherwise set forth in this Award. In the
event that there is any inconsistency between the provisions of this Award and
of the Plan, the provisions of the Plan shall govern.

(e)           Severability.  If any term, provision, covenant or
restriction contained herein is held by a court or a federal regulatory agency
of competent jurisdiction to be invalid, void or unenforceable, the remainder
of the terms, provisions, covenants and restrictions contained herein shall
remain in full force and effect, and shall in no way be affected, impaired or
invalidated.

(f)            Controlling Law.  The Award shall be construed, interpreted and
applied in accordance with the law of the State of Delaware, without giving
effect to the choice of law provisions thereof. 
You agree to irrevocably submit
any dispute arising out of or relating to this Award to the exclusive
concurrent jurisdiction of the state and federal courts located in
Delaware.  You also irrevocably waive, to
the fullest extent permitted by applicable law, any objection you may now or
hereafter have to the laying of venue of any such dispute brought in such court
or any defense of inconvenient forum for the maintenance of such dispute, and
you agree to accept service of legal process from the courts of Delaware.

(g)           Code Section 409A Compliance.  To the extent applicable, it is intended that
this Award and the Plan not be subject to or otherwise comply with the
provisions of Code Section 409A, so that the income inclusion provisions of
Code Section 409A(a)(1) do not apply. This Award and the Plan shall be
interpreted and administered in a manner consistent with this intent, and any
provision that would cause the Award or the Plan to fail to satisfy Code
Section 409A shall have no force and effect until amended to

comply with Code Section 409A (which amendment may be retroactive to the extent permitted by Code Section 409A and may be made by the Company without your consent).

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

(a)           “Award” means the Performance Share Award to you as set forth
herein, and as may be amended as provided herein.

(b)           “Board” means the Company’s Board of Directors.

(c)           [OPTIONAL:  “Change
in Control” means the occurrence of a change in control of a
nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A under the Securities Exchange Act of 1934 (“1934
Act”) as in effect at the time of such change in control, provided that such a
change in control shall be deemed to have occurred at such time as (i) any “person”
(as that term is used in Sections 13(d) and 14(d) (2) of the 1934 Act), is or
becomes the “beneficial owner,” directly or indirectly, of securities
representing 20% or more of the combined voting power for election of directors
of the then outstanding securities of the Company or any successor of the
Company; (ii) during any period of two (2) consecutive years or less,
individuals who at the beginning of such period constituted the Board cease,
for any reason, to constitute at least a majority of the Board, unless the
election or nomination for election of each new director was approved by a vote
of at least two-thirds of the directors then still in office who were directors
at the beginning of the period or whose election or nomination for election was
so approved; (iii) the stockholders of the Company approve any merger or
consolidation as a result of which the common stock of the Company shall be
changed, converted or exchanged (other than a merger with a wholly owned subsidiary
of the Company) or any liquidation of the Company or any sale or other
disposition of 50% or more of the assets or earning power of the Company; or
(iv) the stockholders of the Company approve any merger or consolidation to
which the Company is a party as a result of which the persons who were
stockholders of the Company immediately prior to the effective date of the
merger or consolidation shall have beneficial ownership of less than 55% of the
combined voting power for election of directors of the surviving corporation
following the effective date of such merger or consolidation.]

(d)           “Code” means
the Internal Revenue Code of 1986, as amended.

(e)            “Committee” means the
Leadership Development and Compensation Committee of the Board.

(f)            “Common Stock” means the
Company’s $.05 par value common stock.

(g)           “Company” means The Home Depot, Inc., a Delaware corporation, with
corporate headquarters located at 2455 Paces Ferry Road, Atlanta, Georgia  30339.

(g)           [OPTIONAL: 
“Competitor” means
any company or entity engaged in any way in a business that competes directly
or indirectly with the Company, its parents, subsidiaries, affiliates or
related entities, in the United States, Canada, Puerto Rico, Mexico, China, or
any other location in which the Company, its parents, subsidiaries, affiliates
or related entities conduct business before your employment termination date;
businesses that compete with the Company specifically include, but are not
limited to, the following entities and each of their subsidiaries, affiliates,
assigns, or successors in interest: [INSERT
LIST OF COMPETITORS HERE] .]

(h)           [OPTIONAL:  
“Confidential
Information” shall include any data or information that is
valuable to the Company and not generally known to competitors of the Company
or other outsiders, regardless of whether the confidential information is in
printed, written or electronic form, retained in your memory or has

been compiled or created by you,
including but is not limited to technical, financial, personnel, staffing,
payroll, computer systems, marketing, advertising, merchandising, product,
vendor, customer or store planning data, trade secrets, or other information
similar to the foregoing.]

(i)            [OPTIONAL:  
“Discharge for Cause”
means the involuntary termination of your employment with Asociados Home Depot,
S.A. de C.V. or its affiliates or a successor entity because of an event
involving moral turpitude or dishonesty, a gross failure or negligence on your
part in performing your expected duties, a violation of the Company’s or its
affiliates substance abuse or compliance policies, or willful misconduct or
action by you that is damaging or detrimental to the Company or its
affiliates.  A determination by the
Company that a termination is a Discharge for Cause will be conclusive and
binding regardless of any action you may file challenging such a Discharge.]

(h)           “Disability” means your
inability to substantially perform your employment duties with Asociados Home
Depot, S.A. de C.V. or its affiliates, with reasonable accommodation, as
evidenced by a certificate signed either by a physician mutually acceptable to
you and the Company or, if we cannot agree upon a physician, by a physician
selected by agreement of a physician designated by the Company and a physician
designated by you; provided, however, that if such physicians cannot agree upon
a third physician within thirty (30) days, such third physician shall be
designated by the American Arbitration Association.

(i)             “Grant Date” means the date this Award
is made to you, as set forth on the first page the Award.

(j)            “Maximum Award” means that
maximum number of Performance Shares awarded to you as set forth in Section 2,
representing Three Hundred Percent (300%) of the Target Award.

(k)           “Performance Period” means the
Company’s three (3) consecutive fiscal years commencing with the fiscal year
beginning                      .

(l)            “Performance Share” means a
bookkeeping entry that records the equivalent of one share of Common Stock.

(m)          “Plan” means The
Home Depot, Inc. 2005 Omnibus Stock Incentive Plan, as amended from time to
time.

(n)           “Retirement Eligibility”
means attainment of age 60 and completion of at least five (5) years of
continuous service with the Company and its subsidiaries.

(o)            “S&P 500” means the
companies constituting the Standard & Poor’s 500 Index as of the beginning
and end of the Performance Period (including the Company) and which continue to
be actively traded under the same ticker symbol on an established securities
market through the end of the Performance Period.

(p)           “Target Award” means that
number of Performance Shares specified as such in Section 2.

(q)           “Total
Shareholder Return” or “TSR” means with respect to the Company or other S&P 500
company: (i) the change in the average closing market price of its common stock
(as quoted in the principal market on which it is traded over the 20 trading
days immediately preceding the beginning and end of the Performance Period)
plus dividends and other distributions paid, divided by (ii) the average
closing market price over the 20 trading days immediately preceding the
beginning of the Performance Period, all of which is adjusted for any changes
in equity structure, including but not limited to stock splits and stock
dividends, and assuming that all cash dividends and cash distributions are
immediately reinvested in common stock of the entity using the closing market
price on the dividend payment date.

	
  

  	
   

  
	
   

  	
   

  
	
   

  	
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