401(k) Plan - My Lowe's Life

You may contribute between1% and 50% of your eligiblecompensation (up to the annual contribution limit set by theInternal Revenue Service) to the Plan on a pretax basis (inwhole percentages only). Unless you decline to enroll or youelect to contribute a different amount, 1% of your eligiblecompensation will be automatically deducted on a pre-tax basisfrom your paycheck and deposited into your Plan account.Further, after automatic enrollment, unless you elect differentinvestment allocations (see “Investments” below), yourcontributions will be initially invested in the Vanguard TargetRetirement Date Fund geared to your expected retirement atage 65. You can redirect these account assets into any of theother Plan investment options at any time.Your eligible compensation is the total of the salary or wages,overtime premium pay, commissions, and bonuses paid to youduring the payroll period. For 2009 and 2010, the InternalRevenue Service has limited your total annual employeecontribution to $16,500.Company Matching ContributionsImmediately upon your participation in the Plan, Lowe’s willbegin matching your contributions based on the percentage ofyour compensation (up to six percent (6%)) you elect tocontribute.• Lowe’s will match at 100% the first three percent (3%) ofyour compensation you contribute• Lowe’s will match at 50% the next two percent (2%) ofyour compensation you contribute• Lowe’s will match at 25% the next one percent (1%) of yourcompensation you contribute• Lowe’s does not match contributions over six percent ofyour compensation.Catch-up ContributionsFor any Plan Year in which you’ll be age 50 or older, you canalso contribute up to an additional $5,500 (as determined by theInternal Revenue Service) in that year.Lowe’s will match your catch-up contributions up to 6%, asnoted above, when your catch-up contributions are aggregatedwith your other contributions (but Lowe’s will not match afteryour aggregate annual contributions exceed $16,500). .You can change your deferral percentage at any time byaccessing the Plan’s web site, accessible through the employeeportal at www.myloweslife.com (My Wealth > Wealth RelatedQuick Links > 401(k) > 401(k) at ADP) or directly atwww.mykplan.com, or by calling 1-877-236-5693. Yourrequested change will be put into effect on the first day of asubsequent payroll period as soon as administratively feasibleafter your change request is processed.For example:If your eligible compensation equals $20,000 and you elect to contribute 6% of your biweekly pay, your contribution each pay periodwould be $46.15. The biweekly Company Matching Contribution would be calculated each pay period as follows:Your Contribution Company Match 100% Company Match 50%on first 3%on next 2%Company Match 25%of next 1%Total Contribution$46.15 $23.08 $7.69 $1.92 $78.84In this example:• You would contribute $46.15 every payday.• Lowe’s would contribute $32.69 every payday.• After one year of 401(k) participation, you would have contributed $1,199.90 to your 401(k) account.• After one year of 401(k) participation, Lowe’s would have contributed $849.94.• In total, $2,049.84 would have been contributed to your 401(k) account, at a cost to you of only $1,199.90!6

401(k) PlanBenefits of Pretax SavingsAn advantage of participating in the Plan is that yourcontributions to the Plan are made on a pretax basis. Thismeans your contributions to the Plan are not considered taxableincome until you take them out of the Plan. Here’s an examplethat compares the effect of saving on a pretax basis versusafter-tax. This example is based on a single employee with asalary of $20,000, claiming one exemption*:6% After-Tax Savings6% 401(k)SavingsBase Pay $20,000 $20,000Before-Tax Savings 0 $1,200Taxable Income $20,000 $18,800Federal Income Tax $1,719 $1,538After-Tax Contribution $1200 0Net Pay $17,081 $17,262* Based on Tax year 2008 tax tables assuming standard deductions, filing single.This example above reflects a 6% employee contribution rate. Savings may varywith future tax rates.In the above example, the participant who makes pretaxcontributions to the Plan pays $181 less in taxes while savingthe same amount of money as a regular saver. Although theparticipant in the example will eventually have to pay taxes onthe money when he receives it, such as at retirement, he may bein a lower tax bracket and be able to take advantage of certainfavorable tax rules. The tax consequences of participating inthe Plan are discussed more fully below.LimitationsThe Internal Revenue Code contains rules limiting thecontributions to your account in the Plan. Applying these rules,the Internal Revenue Service sets contribution limits each year.In 2009 and 2010, the maximum amount you may contributeeach year to your Plan account is $16,500 (unless you qualifyto make catch-up contributions as explained above). The IRSwill adjust this contribution limit in the future to account forincreases in the cost of living. Lowe’s may reduce ordiscontinue your salary reduction elections or return excesspayroll deduction contributions to you if necessary to complywith the IRS limits.Timing of Contributions∗The contributions you make to the Plan are deducted from yourpaycheck on a pretax basis each pay period. The contributionswithheld from your paycheck and the Company Matchingcontribution will normally be transferred to the Plan’s trusteeon the same day that you receive your payroll check.RolloversThe Plan will accept an eligible rollover distribution made tothe Plan on your behalf from: a qualified plan described inSection 401(a) or 403(a) of the Internal Revenue Code,including after-tax employee contributions; an annuity contractdescribed in Section 403(b) of the Internal Revenue Code,excluding after-tax employee contributions; or an eligible planunder Section 457(b) of the Internal Revenue Code that ismaintained by a state, political subdivision of a state, or anyagency or instrumentality of a state or political subdivision of astate. Finally, the Plan will accept a rollover contribution fromyou of the portion of a distribution from an individualretirement account (IRA) or annuity described inSection 408(a) or 408(b) of the Internal Revenue Code that iseligible to be rolled over and would otherwise be includible inyour gross income. After-tax amounts from an IRA anddistributions from Roth IRAs cannot be rolled over into thePlan. Rollover amounts may be deposited into the Plan at anytime, even before you are eligible to start participating. Suchrollover contributions will be maintained in a separate RolloverAccount under the Plan.To deposit a rollover amount into the Plan, you must completea Lowe’s rollover form. The Lowe’s rollover form is availableon the employee portal at www.myloweslife.com (My Home >Lowe’s Forms > Wealth Related) and on the Plan’s web site,accessible through the employee portal atwww.myloweslife.com (My Wealth > Wealth Related QuickLinks > 401(k) > 401(k) at ADP) or directly atwww.mykplan.com. Mail the completed form and rollovercheck (made payable to the Lowe’s 401(k) Plan FBO:“EMPLOYEE NAME & SOCIAL SECURITY NUMBER”),along with a copy of your final distribution statement or theLetter of Determination from the prior plan, to the addressstated on the rollover form. Special note: If the rollover check∗Specific portions of this document, designated with an asterisk (*), constitutepart of a prospectus covering securities that have been registered under theSecurities Act of 19337

is made out directly to you (instead of to the Plan), you mustdeposit the check into an eligible employer plan or an IRAwithin 60 days from the date on the check to avoid a taxobligation that year on the rollover amount.Lowe’s does not match rollover contributions.Your Account andInvestingPlease review the following important information whichdescribes how your Plan account works, including how vestingworks, how to access/make changes to your Plan account, andhow investing, voting shares and dividends work.Vesting∗Vesting refers to the percentage of your account that you ownoutright. You are always 100% vested in the total amount ofyour account in the Plan.How to Access/Make Changesto Your Plan Account*You may access your balance and account information, andmake changes in your account, at the Plan’s web site,accessible through the employee portal atwww.myloweslife.com (My Wealth > Wealth Related QuickLinks > 401(k) > 401(k) at ADP) or directly atwww.mykplan.com, or by calling 1-877-236-5693. Whencalling, you will need your Social Security number and PIN toaccess your account. If you have lost or misplaced your PIN(provided initially to you in a letter mail to your homeapproximately 90 days before you became eligible toparticipate), you may request your PIN by calling1-877-236-5693.∗Specific portions of this document, designated with an asterisk (*), constitutepart of a prospectus covering securities that have been registered under theSecurities Act of 1933Investments*This investment disclosure statement is required bySection 404(c) of the Employee Retirement Security Act of1974, as amended (ERISA). Section 404(c) of ERISA requiresthe Plan to provide you with this information, along with otherinformation provided separately from this summary plandescription, so that you may have sufficient information tomake an informed decision regarding investment alternativesavailable under the Plan.This Plan is intended to be a plan described in Section 404(c) ofERISA and Title 29 of the Code of Federal Regulations§ 2550.404c-1. This means that the Plan’s trustee, the Planadministrator, and other fiduciaries of the Plan (i.e., the personswho control the investment of Plan assets) may be relieved ofliability for any investment losses that are the direct andnecessary result of investment instructions given by you underthe Plan. In other words, the Plan fiduciaries are responsiblefor choosing what investment options and investment managersare available under the Plan, and you are responsible forchoosing how to invest your account among those variousoptions. You must decide what the best investment mix is,given your own situation. The Plan fiduciaries are notresponsible for your investment choices.The Plan offers different investment options, and the optionsmay change from time to time. You make the decision on howto invest the amounts in your account. You may elect to investin one or any combination of the optionsoffered by the Plan.Company Matching contributions are invested just like yourcontributions. Further, if you are enrolled automatically, unlessyou elect different investment allocations, your contributionswill be initially invested in the Vanguard Target RetirementDate Fund geared to your expected retirement at age 65. Youcan redirect your account assets into any of the other Planinvestment options at any time.You can separately direct the investment of your RolloverAccount.ESOP account contributions are initially invested in Lowe’sstock, but you can redirect these account assets at any time.Indeciding whether to exercise your right to redirect theinvestment of your ESOP account assets, you will want to givecareful consideration to the information below describing theimportance of diversification. All of the investment optionsunder the Plan are available to you if you decide to diversifyout of company stock.8

401(k) PlanOn any day the stock market is open, you may make transfersamong the Plan’s investment options at the Plan’s web site,accessible through the employee portal atwww.myloweslife.com (My Wealth > Wealth Related QuickLinks > 401(k) > 401(k) at ADP) or directly at www.mykplan..You can also make transfers by calling 1-877-236-5693.Participant-initiated transaction(s) involving the movement ofmoney into or out of Lowe’s stock (including withdrawals anddistributions) must be entered by 2:00 p.m. Eastern time eachbusiness day for the transaction to be processed that day.Transactions entered after this time will be processed the nextbusiness day. All other requests (those not involving Lowe’sstock) must be entered by 4:00 p.m. Eastern time each businessday. Transactions entered after this time will be processed thenext business day.You can find a listing of available investment options on theemployee portal at www.myloweslife.com (My Wealth >Wealth Related Quick Links > 401(k) Funds Brochure) or atthe Plan’s web site, accessible through the employee portal atwww.myloweslife.com (My Wealth > Wealth Related QuickLinks > 401(k) > 401(k) at ADP) or directly atwww.mykplan.com, or by calling 1-877-236-5693. A mutualfund’s investment strategy is subject to change, and futureperformance cannot be guaranteed. Investment return andprincipal value will fluctuate, and mutual fund shares, whenredeemed, may be worth more or less than their original cost.As with any fund, there is no assurance that the fund willachieve its goal. Past performance figures should not beviewed as a representation of future investment performance ofthe stock market or the fund. For complete information about afund, including fees and expenses, refer to the prospectus forthat fund that is available under “Fund Information” at thePlan’s web site, accessible through the employee portal atwww.myloweslife.com (My Wealth > Wealth Related QuickLinks > 401(k) > 401(k) at ADP) or directly atwww.mykplan.com.By providing this information, Lowe’s is not giving tax orinvestment advice. You should speak to a certified financialplanner, tax accountant, or other investment professionalbefore making any investment or retirement decision.The Importance of Diversifying Your Retirement SavingsTo help achieve long-term retirement security, you should givecareful consideration to the benefits of a well balanced anddiversified investment portfolio. Spreading your assets amongdifferent types of investments can help you achieve a favorablerate of return, while minimizing your overall risk of losingmoney. This is because market or other economic conditionsthat cause one category of assets, or one particular security, toperform very well often cause another asset category, or otherparticular security, to perform poorly. If you invest more than20% of your retirement savings in any one company orindustry, your savings may not be properly diversified.Although diversification is not a guarantee against loss, it is aneffective strategy to help you manage investment risk.In deciding how to invest your retirement savings, you shouldtake into account all of your assets, including any retirementsavings outside of the Plan. No single approach is right foreveryone because, among other factors, individuals havedifferent financial goals, different time horizons for meetingtheir goals, and different tolerances for risk. Therefore, youshould carefully consider the rights described in this SummaryPlan Description and how these rights affect the amount ofmoney that you invest in any one particular investment option,particularly Lowe’s Stock, through the Plan.It is also important to review periodically your investmentportfolio, your investment objectives, and the investmentoptions under the Plan to help insure that your retirementsavings will meet your retirement goals.Voting SharesIf your account is invested in Lowe’s stockor you have Lowe’sstock in your ESOP account on the annual record date, you willbe entitled to vote the shares of stock in your account. Beforeeach annual shareholder meeting, you will receive theinformation provided to other shareholders, as well asinstructions on how to exercise your voting rights.DividendsIf your account is invested in Lowe’s stock or you haveLowe’s stock in your ESOP account, when dividends are paidon shares of Lowe’s stock, the dividends will be reinvested intoyour account automatically, unless you elect to receive thedividends in cash, in which case a check for the dividends willbe sent to you. You can elect to have your dividends paid toyou in cash at the Plan’s web site, accessible through theemployee portal at www.myloweslife.com (My Wealth >Wealth Related Quick Links > 401(k) > 401(k) at ADP) ordirectly at www.mykplan.com, or by calling 1-877-236-5693.Your most recent election on file with the Plan’s recordkeeperat each quarterly dividend declaration date will be your officialdividend election.9

Distributions from thePlan∗Approximately four weeks after your employment ends, youwill be notified in a letter mailed to your home address of youreligibility to take a distribution of your Plan account.Beginning thirty (30) days after your last day of employmentwith Lowe’s, you may request a distribution of your accountbalance in a lump sum payment (see “Lump Sum Distribution”below), or you may rollover your distribution to an IRA oranother employer’s qualified plan (see “Rollover” below). If,however, your employment ends because you are relocating toanother country to work for a subsidiary or affiliate of Lowe’sthat does not participate in the 401(k) Plan, you will not beeligible to take a distribution of your account at that time.Except as provided below (see “Age 59 ½ Distributions,” “20-Year – One-Time Withdrawal from ESOP Account,” and“Hardship Withdrawals”), you will not be eligible to take adistribution of your account until you are no longer employedby any subsidiary or affiliate of Lowe’s. While you areworking for a non-participating Lowe’s subsidiary or affiliateoutside the United States (such as Lowe’s Companies Canada,ULC), you will be free to change your investment allocations atany time, but your account will be frozen against contributionsand distributions.Your decision regarding the handling of your distribution mayhave adverse tax consequences and you should considerseeking the advice of a certified financial planner, taxaccountant, or other investment professional before makingyour decision.To request a distribution, visit the Plan’s web site atwww.mykplan.com or call 1-877-236-5693 and speak with aPlan representative. Representatives are available to assist youMonday through Friday, 9 a.m. to 5 p.m., Eastern time, on daysthe stock market is open. When calling, you will need yourSocial Security number and PIN (provided initially to you in aletter to your home about 90 days prior to your eligibility toparticipate). If you have lost or misplaced your PIN, you maycall 1-877-236-5693 to request that your PIN be mailed to yourhome address.∗Specific portions of this document, designated with an asterisk (*), constitutepart of a prospectus covering securities that have been registered under theSecurities Act of 1933Distributions will be based on the value of the funds or Lowe’sstock held in your account on the day your distribution isprocessed.If your account balance exceeds $5,000 when you terminateemployment, your distribution will be deferred until you reachage 62, unless you ask for an earlier distribution. If youraccount balance does not exceed $5,000 but is greater than$1,000 when you terminate employment, the total amount ofyour account will be rolled over to an Individual RetirementAccount (IRA) as soon as administratively feasible after youterminate employment, unless you elect otherwise. Unless youelect to take a lump sum distribution or you elect to rolloveryour account balance to another employer’s qualified plan or anIRA, an IRA will be established in your name withE*TRADESecurities, LLC. If your account balance is $1,000 or less yourtotal account balance will be paid to you as soon asadministratively possible after your termination date.All distributions will be in cash. However, if some or all ofyour account is invested in Lowe’s stock , you may request toreceive that portion of your distribution in stock (you will notreceive actual stock certificates, but instead your stockownership will be reflected in a book entry). This type ofdistribution is called an “in-kind distribution.” If you do notspecifically request Lowe’s stock or an “in-kind distribution,”your distribution will be in cash. In addition, if yourdistribution is made within the first six months after yourtermination date, you will not be eligible for Lowe’sreemployment for six months after your termination date.ForfeituresIf, following your termination of employment, theAdministrative Committee (or its designee) is unable to locateyou after making reasonable efforts to do so, theAdministrative Committee may declare your account balance tobe forfeited. Forfeited amounts will be applied to reduceEmployer Matching Contributions. If the AdministrativeCommittee is able to locate you at a later date, your accountbalance will be restored.Age 59 1 ⁄ 2Distributions*If you are in active service after you have reached age 59 1 ⁄ 2, youmay elect to withdraw your entire account balance in the Plan.This is a one-time, in-service distribution option. At any timeafter you have reached age 59 1 ⁄ 2, visit the Plan’s web site,accessible through the employee portal atwww.myloweslife.com (My Wealth > Wealth Related QuickLinks > 401(k) > 401(k) at ADP) or directly at10

401(k) Planwww.mykplan.com, or call 1-877-236-5693 to request yourpost-age-59-1/2 distribution.In addition to the one-time, in-service distribution optiondescribed in the preceding paragraph, if you have reachedage 59 1 ⁄ 2 and are in active service, and you did not previouslyelect a withdrawal of your total account under the Lowe’sCompanies Employees Stock Ownership Plan after reachingage 65, you may elect to withdraw your entire ESOP account inthe Plan. Again, this is a one-time, in-service distributionoption. You may visit the Plan’s web site, accessible throughthe employee portal at www.myloweslife.com (My Wealth >Wealth Related Quick Links > 401(k) > 401(k) at ADP) ordirectly at www.mykplan.com, or call 1-877-236-5693 andrequest this post-age-59-1/2 distribution of your ESOP accountat any time after you are eligible.20-Year—One-TimeWithdrawal from ESOPAccount*If you are in active service and have reached the 20thanniversary of your original date of hire (even if you were notcontinuously employed for 20 years) you are entitled towithdraw up to 50% of your ESOP account. This is a one-time,in-service distribution option. You may visit the Plan’s website, accessible through the employee portal atwww.myloweslife.com (My Wealth > Wealth Related QuickLinks > 401(k) > 401(k) at ADP) or directly atwww.mykplan.com, or call 1-877-236-5693 and request thisdistribution of your ESOP account at any time after you areeligible.Hardship Withdrawals∗If you have a financial hardship that satisfies the requirementsof the Plan, you may request to make a withdrawal from certainof your accounts in the Plan while still actively employed. Thereasons under the Plan for which you may request a hardshipwithdrawal include:• Your purchase of your primary residence (excludingmortgage payments);• Extraordinary, unreimbursed medical expenses incurred byyou, your spouse, or dependents;• Tuition, room and board, and related educational fees for thenext 12 months of post-secondary education for you, yourspouse, children, or dependents;• Amounts necessary to prevent your eviction from, orforeclosure on, your primary residence;• Funeral expenses for immediate family members; and• Repair of damage to your principal residence resulting in acasualty loss.Your hardship withdrawal cannot exceed the amount of yourimmediate and heavy financial need, including any amountsnecessary to pay any federal, state, or local taxes and penaltiesanticipated to result from the withdrawal. In addition, you mayonly receive permission to make a hardship withdrawal afteryou have obtained all distributions (other than hardshipwithdrawals) then available to you under the Plan.The minimum hardship withdrawal is $1,000. Only the portionof your account attributable to rollover contributions, thebalance in your ESOP diversification account, and youremployee contributions will be available for a hardshipwithdrawal, and the withdrawal will be made from youraccount in that order. Investment earnings on your employeecontributions are not available for hardship withdrawal. Inaddition, your ESOP account and the portions of your accountattributable to Company Matching contributions are notavailable hardship withdrawals.You should be aware that your hardship withdrawal may besubject to an excise tax of 10% in addition to normal taxes ifyou are under age 59 1 ⁄ 2 at the time of the withdrawal.∗Specific portions of this document, designated with an asterisk (*), constitutepart of a prospectus covering securities that have been registered under theSecurities Act of 193311

Hardship Withdrawal request forms are available on theemployee portal at www.myloweslife.com (My Home >Lowe’s Forms > Wealth Related) or at the Plan’s web site,accessible through the employee portal atwww.myloweslife.com (My Wealth > Wealth Related QuickLinks > 401(k) > 401(k) at ADP) or directly atwww.mykplan.com, or by calling 1-877-236-5693 andspeaking with a Plan representative You will be required tosubmit documentation for your hardship request including anotarized statement. When you call, you’ll need your SocialSecurity Number and PIN.If your request for a hardship withdrawal is granted, yourcontributions will be suspended for the next six (6) months inthe Lowe’s 401(k) Plan, the Employee Stock Purchase Plan(ESPP), and any non-qualified deferred compensation plans inwhich you participate (e.g., Benefit Restoration Plan (BRP),Cash Deferral Plan (CDP)). Additionally, during the sixmonths following your hardship withdrawal, you may notexercise any stock options granted to you. Unless you make achange to your 401(k), BRP, or CDP deferral elections duringyour suspension period, at the end of your suspension periodyour salary deferral(s) will resume at the percentage(s) in effectwhen you took the hardship. Moreover, depending on the dateof your hardship distribution, by taking a hardship distributionyou may lose the ability to to re-enroll in the BRP or CDP forthe next plan year. If you were a participant in the ESPP, youwill need to enroll during the next ESPP enrollment periodfollowing your six month suspension period – you will not beautomatically enrolled in the ESPP. You may not request ahardship withdrawal after reaching age 59 ½ unless you havepreviously taken the one-time distribution of your entireaccount balance available for active employees age 59 ½ andabove.Other ImportantInformationThe following section describes other important informationyou should know about the 401(k) Plan. Please review itcarefully so that you can make informed decisions.Federal Income TaxConsequences∗Lowe’s has requested a determination letter from the InternalRevenue Service for the Plan as amended and restated effectiveFebruary 2, 2007. In this request, Lowe’s seeks approval thatthe Plan and related trust agreement satisfy the requirements ofSections 401(a) and 501(a) of the Internal Revenue Coderelating to qualification of the Plan and the tax-exempt status ofthe trust. The following discussion summarizes the federalincome tax consequences of participation in the Plan. Thefederal income tax aspects of the Plan are complex, and thisexplanation is not intended to be a complete description of thefederal income tax consequences of Plan participation. Forthese reasons, you and/or your beneficiary should consult withyour personal tax advisor on any questions you may have.Plan Contributions and EarningsSubject to the limitations imposed by the Internal RevenueCode, Lowe’s contributions to the Plan are deductible byLowe’s in the year they are made. You are not subject tocurrent federal income taxes on contributions by Lowe’s,including contributions made pursuant to your salary deferralelections. These contributions and the earnings on youraccount balances are not subject to federal income taxes untildistributed or withdrawn.Lump Sum DistributionA lump sum distribution is a distribution of your entire interestin the Plan within one taxable year, made as a result of yourdeath, or separation from service or after you reach age 59 1 ⁄ 2.Termination of your employment with a partipating employerin the United States so you can relocate to another country towork for a subsidiary or affiliate of Lowe’s that does notparticipate in the 401(k) Plan does not constitute a “separationof service,” and you will not be entitled to take a distribution ofyour account at that time.A lump sum distribution is subject to tax on the sum of theamount of cash received, and the fair market value of the∗Specific portions of this document, designated with an asterisk (*), constitutepart of a prospectus covering securities that have been registered under theSecurities Act of 193312

Lowe’s stock received, less the net unrealized appreciation (ifany) of such stock over its cost.In the case of a distribution that does not qualify as a lump sumdistribution, the reportable amount is the amount of cash andthe fair market value of any stock received.RolloverIf you receive a distribution of your account, you may be ableto defer taxes on the distribution by means of a rollover toanother qualified employer plan, a 403(a) plan (employerpurchased annuity plan), a 457(b) plan (plan sponsored by astate governmental or tax-exempt entity), or an IRA. Amountsthat are distributed and that are not rolled over will be subjectto tax at ordinary income tax rates. You should consult withyour personal tax advisor to determine whether a distributionshould be rolled over. A rollover that is not a direct rollovermust be completed within 60 days of the distribution from thePlan.Special TaxesIf you receive your distribution before you reach age 59 1 ⁄ 2, youmay be subject to a 10% premature distribution tax in additionto any other federal income tax.Income Tax WithholdingTaxable distributions from the Plan (other than hardshipwithdrawals) are subject to 20% federal income taxwithholding. Hardship withdrawals are subject to 10% incometax withholding unless you elect otherwise. You will be givenspecific information regarding the application of these rulesprior to receiving a distribution from the Plan.Additional InformationAfter you receive a distribution from the Plan, the Plan’s trusteewill provide you with an IRS Form 1099-R. The Plan’s trusteewill also file this form with the Internal Revenue Service. Thisform will tell you the taxable amount of your distribution andthe amount of any net unrealized appreciation. These forms aretypically mailed by January 31for all distributions made in theprevious calendar year.Beneficiaries401(k) PlanYou should name a beneficiary of your Plan account. You mayname a beneficiary on the Plan’s web site, accessible throughthe employee portal at www.myloweslife.com (My Wealth >Wealth Related Quick Links > 401(k) > 401(k) at ADP), ordirectly at www.mykplan.com. You may change yourbeneficiary at any time by updating your information on thePlan’s web site. If you are married and wish to designatesomeone other than your spouse as your beneficiary, you willneed to download the Beneficiary Designation Form from thePlan’s web site. Your spouse will need to sign the BeneficiaryDesignation Form, and your spouse’s signature must bewitnessed by a Notary Public.If you named a beneficiary on the Plan’s web site at any timeafter the date the ESOP merged with the Plan, this beneficiarydesignation will be used in the event of your death to distributeall your Plan account balances, including your ESOP account(if applicable).If you do not name a beneficiary, in case of your death, thebeneficiary of your Plan account will automatically be yourspouse, if you are married, or your estate, if you are single ordivorced. This rule applies to all your Plan accounts includingyour ESOP account (if applicable).However, if you are a Plan participant with an ESOP accounttransferred to the Plan when the ESOP was merged with thePlan, and you already had an ESOP Beneficiary Form on filewith the ESOP prior to the merger date, your previouslycompleted ESOP Beneficiary Form will be used in the event ofyour death to distribute your ESOP account balance under thePlan. In this case, your non-ESOP account balance under thePlan will be paid out under the Plan’s automatic Planbeneficiary rule (i.e., to your spouse or your estate), unless youalso completed and filed a separate Plan Beneficiary Form priorto the ESOP merger date.13

Benefit Assignment orTransfer∗Your account in the Plan cannot be sold, assigned, ortransferred before distribution except under terms of aQualified Domestic Relations Order (QDRO) or pursuant to ajudgment, order, decree, or settlement agreement enteredagainst you as part of any civil or criminal procedure involvingmisuse of Plan assets. Before distribution, your benefits underthe Plan are not subject to any debts or claims against youexcept as specified above.The Plan allows for an immediate lump sum payment to analternate payee under a QDRO even though the participant maynot yet be eligible to receive a distribution from the Plan.However, an alternate payee under a QDRO is not eligible toreceive a hardship withdrawal, an age 59 1 ⁄ 2 distribution, or a 20-year one-time withdrawal from your ESOP account under thePlan. A participant or alternate payee (or prospective alternatepayee) may obtain Plan account information as well as a freecopy of the Plan’s QDRO procedures and a model QDRO fromthe Plan administrator. In addition, if you have questionsregarding a QDRO, you may call1-336-658-4067 .Statement of Rights underERISA*The Plan is governed by and subject to the reporting anddisclosure, participation and vesting, fiduciary responsibility,and enforcement provisions of ERISA.As a participant in the Plan, you are entitled to certain rightsand protections under ERISA. ERISA provides that all Planparticipants will be entitled to:• Receive information about your Plan and benefits.• Examine, without charge, at the Plan administrator’s officeand at other specified locations, such as work sites, alldocuments governing the Plan, including insurancecontracts, collective bargaining agreements, and a copy ofthe latest annual report (Form 5500 series) filed by the Planwith the U.S. Department of Labor and available at thePublic Disclosure Room of the Employee Benefits SecurityAdministration.• Obtain, upon written request to Lowe’s, copies of alldocuments governing the operation of the Plan, includinginsurance contracts and collective bargaining agreements,copies of the latest annual report (Form 5500 series), andupdated summary plan description. Lowe’s may make areasonable charge for the copies.• Receive a summary of the Plan’s annual financial report.Lowe’s is required by law to furnish each participant with acopy of the Plan’s summary annual report.• Obtain a statement telling you the value of your accountsunder the Plan. This statement must be provided to you freeof charge. The statement may be requested through thePlan’s web site or via telephone at 1-877-236-5693. ThePlan is not required to make an account statement availableto you free of charge more than once every calendar quarter.Normally you will automatically receive this statement onceeach quarter via the Plan’s web site (unless you haveterminated service, in which case you will receive astatement by mail).Prudent Actions by Plan FiduciariesIn addition to creating rights for Plan participants, ERISAimposes duties on the people who are responsible for theoperation of the Plan. The people who operate the Plan, calledfiduciaries of the Plan, have a duty to do so prudently and in theinterest of you and other Plan participants and beneficiaries.No one, including your employer, or any other person, may fireyou or otherwise discriminate against you in any way toprevent you from obtaining a pension benefit from the Plan orexercising your rights under ERISA.Enforce Your RightsAccount distributions under the Plan will normally be madewithout participants or beneficiaries having to file claims forbenefits. However, if you (or your beneficiary) do not receive adistribution to which you (or your beneficiary) believe you (oryour beneficiary) are entitled, you (or your beneficiary) maypresent a claim in writing to the Administrative Committee forany unpaid benefits.∗Specific portions of this document, designated with an asterisk (*), constitutepart of a prospectus covering securities that have been registered under theSecurities Act of 1933If your claim for a pension benefit under the Plan is denied, inwhole or in part, you must receive a written explanation of thereason for the denial. You have the right to have theCommittee review and reconsider your claim.14

401(k) PlanUnder ERISA, there are steps you can take to enforce the aboverights. For instance, if you request materials from the Plan anddo not receive them within 30 days, you may file suit in afederal court. In such a case, the court may require Lowe’s toprovide the materials and pay you up to $110 a day until youreceive the materials, unless the materials were not sentbecause of reasons beyond the control of Lowe’s. If you have aclaim for benefits that is denied or ignored, in whole or in part,you may file suit in a state or federal court (see “Claims forBenefits” below). In addition, if you disagree with the Plan’sdecision or lack thereof concerning the qualified status of adomestic relations order, you may file suit in federal court.If it should happen that Plan fiduciaries misuse the Plan’smoney, or if you are discriminated against for asserting yourrights, you may seek assistance from the U.S. Department ofLabor, or you may file suit in a federal court. The court willdecide who should pay court costs and legal fees. If you aresuccessful, the court may order the person you have sued to paythese costs and fees. If you lose, the court may order you to paythese costs and fees if, for example, it finds your claim wasfrivolous.Assistance with Your QuestionsIf you have any questions about the Plan, you should contactthe Plan administrator, care of the Lowe’s Retirement BenefitsDepartment, at 1-704-758-1000. The mailing address for theLowe’s Retirement Benefits Department is Lowe’s Companies,Inc., Mail Code NB2CB, 1000 Lowe’s Boulevard, Mooresville,NC 28117. Only the Plan administrator is authorized to answerquestions about the Plan.If you have any questions about this statement or about yourrights under ERISA, or if you need assistance in obtainingdocuments from the Plan administrator, you should contact thenearest office of the Employee Benefits SecurityAdministration, U.S. Department of Labor, listed in yourtelephone directory, or the Division of Technical Assistanceand Inquiries, Employee Benefits Security Administration, U.S.Department of Labor, 200 Constitution Avenue, N.W.,Washington, D.C. 20210. You may also obtain certainpublications about your rights and responsibilities under ERISAby calling the publications hotline of the Employee BenefitsSecurity Administration (1-866-444-3272) or visiting theEmployee Benefits Security Administration’s web site,www.dol.gov/ebsa/.Resale of Shares AcquiredUnder The Plan∗Unless you are an affiliate of Lowe’s (for example, a director orexecutive officer), any shares of Lowe’s common stockacquired by you under the Plan are freely transferable upondistribution from the Plan. Affiliates of Lowe’s may resell suchshares upon compliance with the applicable provisions ofRule 144 under the Securities Act of 1933.Claims for BenefitsAs stated previously, distributions from your Plan account willnormally be made without any need for you to file a claim forbenefits. However, if you do not receive a distribution to whichyou believe you are entitled, you may file a claim with theAdministrative Committee for any unpaid benefits. Allquestions and claims regarding benefits under this Plan will bedecided by the Administrative Committee. The AdministrativeCommittee has the full and exclusive discretion to interpret andadminister the Plan and the Plan’s trust agreement (including,but not limited to, the full and exclusive discretion to resolve allquestions relating to eligibility and to determine the amount ofbenefits payable under the Plan (including as hardshipwithdrawals)) and to make rules, regulations, computations,interpretations, and decisions under the Plan. The Committeemay allocate any of its responsibilities among its members andmay (to the extent permitted by ERISA) delegate any of itsrights and responsibilities to any other person or organization.If you wish to file a claim for benefits with the Committee, youmust do so in writing, addressed to the AdministrativeCommittee c/o Lowe’s Retirement Benefits Department, at1000 Lowe’s Boulevard, Mail Code NB2CB, Mooresville, NC28117. If documentary evidence is available to support yourclaim, you must submit that evidence with your claim; or, if theevidence is not in your possession you must indicate in yourwritten claim where the documentary evidence may be located.Please note that you are entitled to receive, upon request andfree of charge, reasonable access to and copies of alldocuments, records, and other information relevant to yourclaim.∗Specific portions of this document, designated with an asterisk (*), constitutepart of a prospectus covering securities that have been registered under theSecurities Act of 193315

Claims ProcedureIf your claim for benefits is wholly or partially denied, theAdministrative Committee will notify you in writing of thedenial within 90 days of the date on which the Committeeinitially received your claim. The Committee is entitled toextend this deadline an additional 90 days if specialcircumstances so require. If you disagree with the denial, youcan appeal the decision by following the review procedures setforth below. You are required to utilize fully and timely thePlan’s administrative procedures for reviewing claims as aprerequisite to bringing legal action for benefits in a court oflaw.In its written notice of the denial of your claim for benefits, theAdministrative Committee will advise you of:• The specific reason or reasons for denial;• The specific provisions of the Plan on which the denial wasbased;• Any additional material or information necessary for you toprocess your claim and an explanation of why such materialor information is necessary; and• An explanation of the claims review procedures for thePlan, the time limits under the procedures and a statementregarding your right to bring a civil action underSection 502(a) of ERISA following an adverse benefitdetermination on appeal.Review of Denied ClaimIf your claim for benefits has been denied, you have theopportunity to file a written request for a full and fair review ofyour claim by the Administrative Committee, to provide forreview all documents relating to your claim, and to submit awritten statement regarding your claim. You must file thiswritten request for a review of your claim within 60 days afteryour receipt of the written notification from the AdministrativeCommittee denying your claim.The Committee usually will make a decision within 60 daysafter it receives your request for review. However, if there arespecial circumstances (such as the need to hold a hearing) thatrequire an extension of time for completing its review, theCommittee can extend this period for up to an additional 60days. The Committee’s decision on your request for a reviewwill be in writing and will include:• The specific reasons for the denial;• The specific Plan provisions on which the denial is based;• A statement that you are entitled to receive, upon requestand free of charge, reasonable access to and copies of alldocuments, records, and other information relevant to yourclaim; and• A statement of your right to bring an action underSection 502(a) of ERISA.Federal Pension BenefitInsuranceThe benefits provided by the Plan are not insured by thePension Benefit Guaranty Association (PBGC). The PBGCinsures certain benefits under defined benefit plans in the eventof a plan termination. This Plan is a defined contribution planand therefore is not insured by the PBGC.Amendment orTermination of Plan∗Lowe’s (and, under certain circumstances, the AdministrativeCommittee) reserves the right to amend or terminate the Plan atany time in the future. No amendment may retroactivelyreduce your vested rights.If the Plan is terminated and you are affected by thetermination, you will remain 100% vested in your accountunder the Plan. In that event, Lowe’s will decide whether yourbenefits will be distributed immediately or whether distribution∗Specific portions of this document, designated with an asterisk (*), constitutepart of a prospectus covering securities that have been registered under theSecurities Act of 193316

401(k) Planof your benefits will be deferred until a later date (for example,until your employment terminates).Registration Statementand Other InformationAvailable∗Lowe’s will make available to participants in the Plan, uponwritten or oral request and without charge, the documents listedbelow that are incorporated by reference into the RegistrationStatement on Form S-8, as amended (the Plan RegistrationStatement), relating to the Plan and that was filed with theSecurities and Exchange Commission. This summary plandescription constitutes part of a prospectus covering securitiesthat have been registered under the Securities Act of 1933.The following documents are incorporated by reference herein:• Lowe’s latest annual report on Form 10-K filed with theSecurities and Exchange Commission for the fiscal yearended January 31, 2009.• The Plan’s latest annual report on Form 11-K filed with theSecurities and Exchange Commission for the Plan’s fiscalyear ended December 31, 2009.• All other reports filed by Lowe’s pursuant to Section 13(a)or 15(d) of the Securities Exchange Act of 1934, asamended (the Exchange Act) since January 31, 2009.• The description of common stock contained in Lowe’sregistration statement filed under Section 12 of theExchange Act, including all amendments or reports filed forthe purpose of updating such description.• All other documents subsequently filed by Lowe’s or thePlan pursuant to Sections 13(a), 13(c), 14 and 15(d) of theExchange Act prior to the filing of a post-effectiveamendment to the registration statement that indicates thatall securities offered have been sold or that de-registers allsecurities then remaining unsold, shall be deemed to beincorporated by reference herein and to be a part hereoffrom the date of filing such documents.Any statement contained in a document incorporated or deemedincorporated herein by reference shall be deemed to bemodified or superseded for the purpose of this prospectus to theextent that a statement contained herein or in any subsequentlyfiled document that also is, or is deemed to be, incorporatedherein by reference modifies or supersedes such statement. Anysuch statement so modified or superseded shall not be deemed,except as so modified or superseded, to constitute a part of thisprospectus.Lowe’s has registered 5,000,000 shares of common stock ofLowe’s that may be offered or purchased under this Plan. Theprice of the securities offered and purchased under this Planwill be the fair market price at the time of purchase by thetrustee.The securities offered pursuant to this prospectus have not beenapproved or disapproved by the Securities and ExchangeCommission or any state securities commission, nor has theSecurities and Exchange Commission or any state securitiescommission passed upon the accuracy or adequacy of thisprospectus. Any representation to the contrary is a criminaloffense.Requests for any of the foregoing documents should be directedto:Lowe’s Retirement Benefits DepartmentLowe’s Companies, Inc.Mail Code NB2CB1000 Lowe’s BoulevardMooresville, NC 28117Telephone: 1-704-758-1000Any other reports, proxy statements, and other communicationsdelivered to Lowe’s shareholders are also available to you uponrequest and without charge. If you have elected to invest part ofyour account balances in Lowe’s stock, you will receive thesedocuments automatically.∗Specific portions of this document, designated with an asterisk (*), constitutepart of a prospectus covering securities that have been registered under theSecurities Act of 193317