Document:

Exhibit
10.7

Tribune
Company

Transitional
Compensation Plan for Executive Employees

Tribune Company, by
resolution of its Board of Directors, adopted the Tribune Company Transitional
Compensation Plan for Executive Employees (the “Plan”) on December 9, 1985, to
attract and retain executives of outstanding competence and to provide
additional assurance that they will remain with Tribune Company and its
subsidiaries on a long-term basis. The following provisions constitute an
amendment and restatement of the Plan effective as of July 19, 2006.

1.                                       Participation.  Any full-time, key executive
employee of Tribune Company or of any of its subsidiaries shall be eligible to
participate in the Plan in one of three separate tiers, if at the time his
employment terminates he has been designated by the Committee as being covered
by the Plan within a specific tier, and such designation has not been revoked;
provided, however, that no revocation of such designation shall be effective if
made: (a) on the day of, or within 36 months after, occurrence of a “Change in
Control,” as such term is hereinafter defined; or (b) prior to a Change in
Control, but at the request of any third party participating in or causing the
Change in Control; or (c) otherwise in connection with or in anticipation of a
Change in Control.

For the purposes of the Plan, the term “subsidiary” shall mean any
corporation, more than 50 percent of the outstanding, voting stock in which is
owned by Tribune Company or by a subsidiary.

2.                                       Administration.  The Plan shall be administered by the
Compensation & Organization Committee of the Board of Directors of Tribune
Company (the “Committee”) or by a successor committee. The Committee shall have
the authority to make rules and regulations governing the administration of the
Plan, to designate executive employees to be covered by the Plan, to revoke
such designations, and to make all other determinations or decisions, and to
take such actions, as may be necessary or advisable for the administration of
the Plan. The Committee’s determinations need not be uniform, and may be made
selectively among eligible employees, whether or not they are similarly
situated.

3.                                       Eligibility for Transitional Compensation.  An executive who is a Participant in the
Plan shall be eligible to receive transitional compensation, in the amounts and
at the times described in paragraph 5, if:

(a)                                  His employment with the Company and all
of its subsidiaries is terminated:

(i)                                     On
the day of, or within 36 months (24 months in the case of Tier II Participants
and 18 months in the case of Tier III Participants) after, occurrence of a “Change
in Control,” as such term is hereinafter defined;

 

(ii)                                  Prior
to a Change in Control, but at the request of any third party participating in
or causing the Change in Control; or

(iii)                               Otherwise in connection
with or in anticipation of a Change in Control; and

(b)           The Participant’s termination of
employment was not:

(i)                                     On
account of his death;

(ii)                                  On account of a physical or mental
condition that would entitle him to long-term disability benefits under the
Tribune Company Long Term Disability Plan, as then in effect (whether or not he
is actually a Participant in such plan);

(iii)                               For conduct involving
dishonesty or willful misconduct which, in either case, is detrimental in a
significant way to the business of Tribune Company or any of its subsidiaries;
or

(iv)                              On
account of the employee’s voluntary resignation; provided that a resignation
shall not be considered to be “voluntary” for the purposes of the Plan in the
following situations: (x) if the resignation by Tribune Company’s Chairman
& Chief Executive Officer or a Participant designated as a Tier I
Participant as of December 13, 1994, occurs during the 30-day period
immediately following the first anniversary of the Change in Control (i.e.,
this provision is not available for Tier II or Tier III Participants or other
Tier I Participants); or (y) if the resignation occurs under the circumstances
described in paragraph 14(a) of the Plan; or (z) if, subsequent to the Change
in Control and prior to such resignation, there has been a reduction in the
nature or scope of the Participant’s authority or duties, a reduction in the
Participant’s compensation or benefits or a change in the city in which he is
required to perform his duties.

4.                                       Change in Control.  For the purposes of the Plan, a “Change
in Control” shall mean:

(a)                                  The acquisition, other than from Tribune
Company, by any person, entity, or “group” (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”)),
excluding for this purpose the Company, the Robert R. McCormick Tribune
Foundation, the Cantigny Foundation,  (or
any charitable trust, foundation, organization, or similar entity or entities
succeeding to one or both of those Foundations or any substantial part thereof)
and any employee benefit plan or trust of Tribune Company or its subsidiaries,
of beneficial ownership (within the 

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meaning of Rule
13d-3 promulgated under the Exchange Act) of 20 percent or more of either
the then outstanding shares of common stock or the combined voting power of
Tribune Company’s then outstanding voting securities entitled to vote generally
in the election of directors;

(b)                                 Individuals
who, as of January 1, 2005, constitute the Board of Directors of Tribune
Company (as of January 1, 2005 the “Incumbent Board” and, generally, the “Board”) cease for any reason  to constitute at least a majority of the Board, provided
that any person becoming a director subsequent to the date hereof whose
election, or nomination for election, by the shareholders of Tribune Company
was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board (other than an election or nomination of an individual
whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the members of the
Board of Tribune Company, as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) shall be considered as
though such person were a member of the Incumbent Board; or

(c)                                  Consummation
of a reorganization, merger, consolidation or other transaction  involving Tribune Company, in each case, with
respect to which persons who were the shareholders of Tribune Company
immediately prior to such reorganization, merger, consolidation or other
transaction do not, immediately thereafter, own, directly or indirectly, 50% or
more of the combined voting power of the then outstanding securities entitled to
vote generally in the election of directors of the reorganized, merged or
consolidated company, or a liquidation or dissolution of Tribune Company, or
the sale of all or substantially all of the assets of Tribune Company.

5.                                      Amount
and Payment of Transitional Compensation. 
A Participant who is eligible for transitional compensation shall
receive:

(a)                                  Subject
to paragraph 6, a lump-sum cash payment, payable within 30 calendar days after
the date on which his employment terminates, in an amount equal to the sum of:

(i)                                     For
Tier I Participants, three (3) multiplied by the sum of (x) the Participant’s
highest annual rate of Base Salary in effect within the three years prior to or
upon the effective date of termination and (y) two hundred percent (200%) of
the Participant’s target bonus payable for the year in which the Change in
Control occurs under the Tribune Company Incentive Compensation Plan (As
Amended and Restated Effective May 12, 2004), as now or hereafter amended, or
any replacement or successor plan;

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(ii)                                  For
Tier II Participants, two (2) multiplied by the sum of (x) the Participant’s
highest annual rate of Base Salary in effect within the three years prior to or
upon the effective date of termination and (y) two hundred percent (200%) of
the Participant’s target bonus payable for the year in which the Change in
Control occurs under the Tribune Company 
Incentive Compensation Plan (As Amended and Restated Effective May 12,
2004), as now or hereafter amended, or any replacement or successor plan; or

(iii)                               
For Tier III Participants, one (1) multiplied by the sum of (x) the Participant’s
highest annual rate of Base Salary in effect within the three years prior to or
upon the effective date of termination and (y) one hundred percent (100%) of
the Participant’s target bonus payable for the year in which the Change in
Control occurs under the Tribune Company 
Incentive Compensation Plan (As Amended and Restated Effective May 12,
2004), as now or hereafter amended, or any replacement or successor plan;

(b)                                 Outplacement
services at a qualified agency selected by Tribune Company; and

(c)                                  Continuation of coverage under his
employer’s group medical, group life, and group long-term disability
plans, if any, and under any policy or policies of “split dollar” life insurance
maintained by his employer, until the earliest to occur of:

(i)                                     The
expiration of 36 months for Tier I Participants, the expiration of 24 months
for Tier II Participants and the expiration of 12 months for Tier III
Participants, from the date on which his employment terminates; or

(ii)                                  The
date on which he obtains comparable coverage provided by a new employer.

For purposes of this
paragraph 5, a Participant’s annual rate of base salary shall be determined
prior to any reduction for deferred compensation, “401(k)” plan contributions,
and similar items, provided that any reduction in a Participant’s annual rate
of salary, group insurance or split dollar coverage, occurring within 36 months
after a Change in Control shall be disregarded, and the payments and coverage
under this paragraph shall be governed by the annual salary, group insurance
and split dollar coverage, provided to such Participant immediately prior to
such reduction.

6.                                       Certain Distributions. Notwithstanding any provision of the
Plan to the contrary, a Participant who is a “specified employee” as defined in
Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”)

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may not receive a
distribution under the Plan prior to the date which is 6 months after the date
of the Participant’s termination of employment, or, if earlier, the date of
death of the Participant.

7.                                       Taxes. 
If, for any reason, any part or all of the amounts payable to a Tier
I or Tier II Participant pursuant to the Plan (or otherwise, if such amounts
are paid by Tribune Company or any of its subsidiaries in connection with a
Change in Control) are deemed to be “excess parachute payments” within the
meaning of Section 280G(b)(1) of the 
Code , Tribune Company shall pay to such Participant, in addition to any
other amounts that he may be entitled to receive pursuant to the Plan, an
amount which, after all federal, state, and local taxes (of whatever kind)
imposed on the Participant with respect to such amount are subtracted
therefrom, is equal to the excise taxes imposed on such excess parachute
payments pursuant to Section 4999 of the Code.

8.                                       No Funding of Transitional Compensation.  Nothing herein contained shall require or be
deemed to require Tribune Company or a subsidiary to segregate, earmark, or
otherwise set aside any funds or other assets to provide for any payments
required to be made hereunder, and the rights of a terminating Participant to
transitional compensation hereunder shall be solely those of a general,
unsecured creditor of Tribune Company. However, Tribune Company may, in its
discretion, deposit cash or property, or both, equal in value to all or a
portion of the amounts anticipated to be payable hereunder for any or all
Participants into a trust, the assets of which are to be distributed at such
times as are provided for in the Plan; provided that such assets shall be
subject at all times to the rights of Tribune Company’s general creditors.

9.                                       Death. 
In the event of a Participant’s death, any amount or benefit payable or
distributable to him pursuant to paragraph 5(a) and paragraph 7 shall be paid
to the beneficiary designated by such Participant for such purpose in the last
written instrument received by the Committee prior to the Participant’s death,
if any, otherwise, to the Participant’s estate.

10.                                 Rights in the Event of Dispute.  If a claim or dispute arises concerning the
rights of a Participant or beneficiary to benefits under the Plan, regardless
of the party by whom such claim or dispute is initiated, Tribune Company shall,
upon presentation of appropriate vouchers, pay all legal expenses, including
reasonable attorneys’ fees, court costs, and ordinary and necessary out-of-pocket
costs of attorneys, billed to and payable by the Participant or by anyone
claiming under or through the Participant (such person being hereinafter
referred to as the Participant’s “claimant”), in connection with the bringing,
prosecuting, defending, litigating, negotiating, or settling such claim or
dispute; provided that:

(a)                                  The Participant or the Participant’s
claimant shall repay to Tribune Company any such expenses theretofore paid or
advanced by Tribune Company if and to the extent that the party disputing the
Participant’s 

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rights obtains a judgment in its favor from a court of
competent jurisdiction from which no appeal may be taken, whether because the
time to do so has expired or otherwise, and it is determined that such expenses
were not incurred by the Participant or the Participant’s claimant while acting
in good faith; provided further that

(b)                                 In the case of any claim or dispute
initiated by a Participant or the Participant’s claimant, such claim shall be
made, or notice of such dispute given, with specific reference to the
provisions of this Plan, to the Committee within one year after the occurrence
of the event giving rise to such claim or dispute.

11.                                 Amendment or Termination.  Subject to Section 409A of the Code,  the Board of Directors of Tribune Company reserves the
right to amend, modify, suspend, or terminate the Plan at any time; provided
that:

(a)                                  Without
the consent of the Participant, no such amendment, modification, suspension, or
termination shall reduce or diminish his right to receive any payment or
benefit which becomes due and payable under the Plan as then in effect by
reason of his termination of employment prior to the date on which such
amendment, modification, suspension, or termination becomes effective; and

(b)                                 No
such amendment, modification, suspension, or termination which has the effect
of reducing or diminishing the right of any Participant to receive any payment
or benefit under the Plan will become effective prior to the expiration of the
36 consecutive month period commencing on the date of a Change in Control, if
such amendment, modification, suspension, or termination was effected: (i) on
the day of or subsequent to the Change in Control; (ii) prior to the Change in
Control, but at the request of any third party participating in or causing the
Change in Control; or (iii) otherwise in connection with or in anticipation of
a Change in Control.

12.                                 No Obligation to Mitigate Damages.  In the event a Participant becomes
eligible to receive benefits hereunder, the Participant shall have no
obligation to seek other employment in an effort to mitigate damages. To the
extent a Participant shall accept other employment after his termination of
employment, the compensation and benefits received from such employment shall
not reduce any compensation and benefits due under this Plan, except as
provided in paragraph 5(c).

13.                                 Other Benefits.  The benefits provided under the Plan
shall, except to the extent otherwise specifically provided herein, be in
addition to, and not in derogation or diminution of, any benefits that a
Participant or his beneficiary may be entitled to receive under any other plan
or program now or hereafter maintained by Tribune Company or by any of its
subsidiaries.

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14.           Successors.

(a)                                  Tribune Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise)
to all or substantially all of the business and/or assets of Tribune Company,
to expressly assume and agree to perform Tribune Company’s obligations under
this Plan in the same manner and to the same extent that Tribune Company would
be required to perform them if no such succession had taken place unless, in
the opinion of legal counsel mutually acceptable to a majority of the
Participants, such obligations have been assumed by the successor as a matter
of law. Failure of Tribune Company to obtain such agreement prior to the
effectiveness of any such succession (unless the foregoing opinion is rendered
to the Participants) shall entitle each Participant to terminate his employment
and to receive the payments provided for in paragraphs 5 and 7 above. As used
in this Plan, “Tribune Company” shall mean such company, as presently
constituted, and any successor to its business and/or assets which executes and
delivers the agreement provided for in this paragraph 14 or which otherwise
becomes bound by all the terms and provisions of the Plan as a matter of law.

(b)                                 A
Participant’s rights under this Plan shall inure to the benefit of, and shall
be enforceable by, the Participant’s legal representative or other successors
in interest, but shall not otherwise be assignable or transferable.

15.                                 Notices.  Any notices referred to herein shall be in
writing and shall be sufficient if delivered in person or sent by U.S.
registered or certified mail to the Participant at his address on file with his
employer (or to such other address as the Participant shall specify by notice),
or to Tribune Company at 435 North Michigan Avenue, Chicago, Illinois 60611,
Attention: Compensation & Organization Committee.

16.                                 Waiver. 
Any waiver of any breach of any of the provisions of the Plan shall not
operate as a waiver of any other breach of such provisions or any other
provisions, nor shall any failure to enforce any provision of the Plan operate
as a waiver of any party’s right to enforce such provision or any other
provision.

17.                                 Severability.  If any provision of the Plan or the
application thereof is held invalid or unenforceable by a court of competent
jurisdiction, the invalidity or unenforceability thereof shall not affect any
other provisions or applications of this Plan which can be given effect without
the invalid or unenforceable provision or application.

18.                                 Governing Law. The validity,
interpretation, construction, and performance of the Plan shall be governed by
the laws of the state of Illinois.

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19.                                 Headings. The headings and paragraph
designations of the Plan are included solely for convenience of reference and
shall in no event be construed to effect or modify any provisions of the Plan.

20.                                 Gender and Number. In the Plan
where the context admits, words in any gender shall include the other gender,
words in the plural shall include the singular, and words in the singular shall
include the plural.

IN
WITNESS WHEREOF, the Tribune Company Employee Benefits Committee has caused the
foregoing to be executed on behalf of Tribune Company by the undersigned duly
authorized Chairman of the Committee as of the 19th day of July, 2006.

	
  

  	
   

  	
  TRIBUNE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald C. Grenesko

  	
   

  
	
   

  	
   

  	
  Chairman of Tribune Company

  Employee Benefits Committee

  

 

 

 8THE 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 the Company and its
subsidiaries 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.

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 the Company and its subsidiaries
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 the Company and its subsidiaries
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 the Company and its subsidiaries
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 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.]

11.           [OPTIONAL
(NON-LEGAL):           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 

 

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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
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 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.]

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 

 

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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 

 

 4
 

 

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 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.]

(h)           “Disability” means 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 

 

 5
 

 

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.

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

 

 6

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