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                                                                   EXHIBIT 10.39

                            EXECUTIVE LIFE INSURANCE

ABOUT THE PLAN

As a Home Depot Executive, you are automatically eligible to enroll in the
Executive Life Insurance, Death Benefit Only Plan. This Plan adds to your Total
Value Package because the Company insures your life for $250,000 and pays all
of the premiums for you. Additionally, the Plan has no imputed income for you to
report.

To enroll in this benefit, you will need to complete several forms:

-        Pacific Life application

-        Consent to Insure

-        Employment Death Benefit Agreement

-        Beneficiary Designation form

These are in the pocket at the back of this binder. Please answer all of the
questions, provide information and sign where indicated.

EXECUTIVE LIFE ENROLLMENT CHECKLIST

For your convenience, we have prepared the following enrollment checklist.
Please follow these steps before returning your EXECUTIVE BENEFITS ELECTION
WORKSHEET.

ON THE APPLICATION PLEASE ANSWER:

Question 3: State of birth

Question 25: Activity at work

Question 27: Smoking status

PLEASE SIGN AND DATE ALL FORMS.

PLEASE RETURN ALL ORIGINAL FORMS to the Executive Benefits Representative,
Benefits Department, C-9, Atlanta SSC within two weeks of receiving this
enrollment binder. If you have questions about how the program works, or about
any of the options, please call the Executive Benefits Representative at the
Store Support Center in Atlanta.<PAGE>
                                                                   EXHIBIT 10.40

                           EXECUTIVE PHYSICAL PROGRAM

ABOUT THE PLAN

The Emory Clinic in Atlanta is the designated provider for The Home Depot
officers. The Executive Health program is designed to monitor and maintain
optimum health for The Home Deport officers. Comprehensive, annual medical
protocols have been tailored to match the total potential health risks of our
dynamic Home Depot officer team. In addition to an examination and thorough
review of personal and family histories, age-related preventive testing is
recommended. Please see the attached list of required age-related tests.

Emory offers the latest technology. The Ultrafast CT Scan is a proven,
non-invasive test which is many times more effective in detecting the presence
of coronary plaque, even in people who are healthy and have no symptoms of heart
disease. Our goal is to provide you with the tools to achieve optimal health.

HOW THE PROGRAM WORKS

You will receive notification that your physical is due on your birth date. If
you are a new officer and have had your physical within six months of your
birth date, Emory will ask you to wait until next year to have your next
physical, unless there is a medical concern.

ATLANTA-BASED OFFICERS

The Emory Clinic will send a reminder letter at which time you can call or fax
The Emory Clinic to make your appointment (404-778-3886). You will be sent
instructions regarding lab work and a questionnaire to be completed prior to
the scheduled physical. This service is an officer benefit, and no payment is
required.

OFFICERS BASED OUTSIDE OF ATLANTA

You may select one of the following options:

1.  THE EMORY CLINIC IN ATLANTA

If you are planning to visit the Atlanta area, we encourage you to take
advantage of the world-renowned Emory physicians, medical facilities, and
technology at the Emory Clinic. Contact the Executive Health Program at
(404-778-3886) prior to your arrival to arrange an appointment.

2.  THE EXECUTIVE REGISTRY NETWORK

If you are unable to come to Atlanta, please make your appointment with a
Registry Network Hospital. Emory provides referrals to member hospitals
throughout the United States, Canada and South America. Contact Building Better
Health (BBH) at (770-384-4030) to arrange an appointment. Officers can elect to
see a physician of their choice; however, we cannot guarantee the quality of
care if you choose to do so. Please notify BBH after your physical has been
scheduled so we can contact the hospital to review the tests for protocol and
billing procedures.

PAYMENT FOR EXECUTIVE PHYSICAL

This service is an officer benefit with a cap of $1,250 for a basic and $3,750
for a comprehensive physical. All invoices are to be sent to the Manager of BBH
for payment. Do not send invoices to your medical insurance for payment.

<PAGE>
BUILDING BETTER HEALTH (BBH)
BBH provides comprehensive nutrition and fitness consultations as a part of
your annual Executive Physical Program. These complimentary services are
offered in the Atlanta SSC Wellness Center.

EXECUTIVE NUTRITION PROGRAM
Our BBH registered, licensed dietitian will provide you with a nutrition
assessment and counseling for health promotion or treatment of
nutrition-related diseases.

HOW THE PROGRAM WORKS
Contact BBH to schedule an appointment. At that time you will be provided with a
food log for you to complete and bring with you to your appointment. You may
invite anyone who regularly prepares your food or joins you in daily eating to
attend your nutrition appointment.

Your visit will last approximately one hour. During that time you and the
registered dietitian will do the following:

-        Assess your dietary practices and health history
-        Develop a personalized nutrition program
-        Review specific instructions and materials on appropriate food choices
-        Establish good eating behavior
-        Schedule a follow-up appointment to monitor progress

EXECUTIVE FITNESS EVALUATION & EXERCISE PRESCRIPTION
A BBH certified fitness trainer will provide you with a fitness evaluation to
maximize the results of your efforts. The evaluation consists of checking blood
pressure, body fat, muscular strength, muscular endurance, flexibility and
aerobic capacity. The protocol utilized follows the American College Sports
Medicine Guidelines. After the evaluation, you will receive a personalized
exercise program for your current level of fitness, exercise interests and
personal goals. Your program will be re-evaluated every six months to ensure
proper progress.

BBH provides you with one-on-one weight lifting workshops to orient you on the
equipment at the SSC Wellness Center. The workshop teaches you proper strength
training techniques for optimal safety and progress.

APPOINTMENT SCHEDULING
You or your assistant can call the BBH staff, (see the Resource List behind the
Updates Tab for contact information), to make an appointment for the nutrition
consultations, fitness evaluations, and exercise prescriptions. These services
are offered at the Atlanta SSC Wellness facility. The Building Better Health
staff is always on hand to answer any questions regarding your health and
wellness.<PAGE>
                                                                   EXHIBIT 10.42

LONG-TERM INCENTIVE PLAN (LTIP)

WHAT IS THE LTIP?
As a Key Senior Executive, we are pleased to announce that you are eligible for
our new Long-Term Incentive Plan (LTIP), which takes effect in FY 2002.

The objectives of the plan are:

-   Focus business leaders on the attainment of long-term (three-year)
    company-wide strategic goals,

-   Link executive compensation to the creation of shareholder value, and

-   Attract, motivate, and retain high-level executive talent.

You should know that you are in this plan because you are a member of the
strategic leadership group that has the power to influence the long-term
performance of the Company.

PERFORMANCE MEASURE
-   The performance measure for The Home Depot LTIP is Total Shareholder Return
    (TSR) measured against our peer group during the performance period.

         Change in Stock price over the
      Performance Period + Dividends Paid
TSR = ------------------------------------
             Beginning Stock Price

-   The peer group consists of companies included in the S&P Retail Composite
    Index, which is used in our Proxy for the stock performance graph.
    Currently, that group has 35 companies.

PERFORMANCE PERIOD
Each Performance period is a three-year cycle with a new three-year performance
period beginning every year. The periods overlap as follows:

<Table>
<Caption>
                     2002            2003            2004             2005            2006            2007
---------------------------------------------------------------------------------------------------------------
<S>                  <C>             <C>             <C>             <C>              <C>             <C>
First Award                      Performance Period                  Payout
---------------------------------------------------------------------------------------------------------------
Second Award                                      Performance Period                  Payout
---------------------------------------------------------------------------------------------------------------
Third Award                                                      Performance Period                   Payout
---------------------------------------------------------------------------------------------------------------
</Table>

The payout for the first performance period is 2005 with the opportunity for
annual payouts thereafter, assuming appropriate levels of performance.

TARGET AWARD
-   100% of base salary for your position.
-   Target awards are established at the start of each performance period.
<PAGE>
AWARD VEHICLE AND PAYMENT FORM

-        Target award established at the start of each performance period will
         be one-half cash and one-half performance shares.

-        At the end of the performance period, any earned cash portion will be
         paid in cash and the earned performance share portion will be paid in
         shares of restricted stock.

-        The restricted stock vests at the third anniversary of the grant or
         payout date.

-        During the vesting period, participants will be entitled to receive
         dividends on the restricted shares.

PAYOUT CALCULATION

At the end of each three-year performance period, The Home Depot's TSR will be
ranked among the retail companies in our peer group by listing the companies
from highest TSR to lowest TSR. The chart below shows the percentage of LTIP
target payout if The Home Depot's TSR rates in the 50th, 70th, 90th, and 100th
percentile in its peer group.

<PAGE>
WHAT HAPPENS WHEN YOU END EMPLOYMENT

-        If your employment ends because of death, disability, or retirement and
         you have participated for at least two years in a performance period,
         you will still receive pro rata awards for actual results at the end of
         the performance period.

-        At retirement, all unvested restricted shares will vest. (Retirement is
         defined as age 60 or older with at least five years of service.)

TAXES

The portion of your target payout that is cash will be taxed when it is paid.
Restricted stock grants are taxable in the year that they vest. However,
dividends received as a result of restricted stock are taxable in the year they
are earned.

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