Best Buy 2009 Annual Report Download - page 53

continued business dealings with UnitedHealth when Dick’s Sporting Goods, Inc. (‘‘Dick’s’’). Pursuant to an
Mr. Mikan joined our Board. assignment of lease, we lease certain land and buildings
to Dick’s for its retail store in Richfield, Minnesota. We
Frank D. Trestman originally entered into the lease agreement with
Galyan’s Trading Co. in 2000, prior to Mr. Dunn
The Avalon Group is a real estate development joining Dick’s board. The payments required for the
partnership in which Frank D. Trestman, a director since term of the lease increase annually according to a
1984, and Mr. Trestman’s son-in-law each own prescribed schedule. The initial term of the lease expires
one-third interests. Mr. Trestman is the chairman of The in 2019, and the lease includes eight 5-year automatic
Avalon Group, with the other partners responsible for renewals unless otherwise terminated. During fiscal
operations. In fiscal 2007, we entered into a 10-year 2009, we received $3.2 million in lease payments. Best
lease with Avalon-Timbercrest for a retail store located Buy also made payments to Dick’s in fiscal 2009
in a development in which The Avalon Group has an totaling $437,000 in connection with sports-related
interest. Mr. Trestman and his son-in-law each own a corporate sponsorships. In light of Mr. Dunn’s
20% interest in the property we lease. Our real estate relationship with Dick’s, the Board determined that
department has determined that the rental payments continuing these business relationships with Dick’s is in
under the lease are competitive for the real estate our best interest and that the lease terms are
market in the relevant geographic area. The payments competitive with terms available from unaffiliated third
required for the first five years of the term are $700,200 parties.
per year, with an increase in years six through ten to
$745,200 per year. In fiscal 2009, we paid aggregate Jonathan E. Pershing
rents to Avalon-Timbercrest of $775,800. In light of
Mr. Trestman’s relationship with Avalon-Timbercrest, the Jonathan E. Pershing is our Executive Vice President —
Board determined that the lease is in our best interest Human Capital. Travis Cinco was employed with us as a
and has terms that are competitive with terms available Senior Director — Operating Development and shares a
from unaffiliated third parties. household with Mr. Pershing. During fiscal 2009, we
paid Mr. Cinco total cash compensation of $149,000
Hatim A. Tyabji and awarded him options to purchase 3,700 shares of
Best Buy common stock at an exercise price of $41.19
Hatim A. Tyabji, a director since 1998, has served as per share and options to purchase 3,700 shares of Best
chairman of the board of directors of Jasper Buy common stock at an exercise price of $26.88 per
Wireless, Inc. (‘‘Jasper’’) since November 2008. We share. The stock options were scheduled to expire in
purchase wireless data connectivity services from Jasper August 2018 and October 2018, respectively, and vest
for our private label mobile navigation devices. We paid ratably over four years. In February 2009, Mr. Cinco
$2 million to Jasper in fiscal 2009, which represented opted to terminate his employment pursuant to our
approximately 10% of its recognized revenue for the Voluntary Separation Program, for which he received a
year. Mr. Tyabji is not an employee of Jasper, nor did he one-time lump sum payment of $193,503, of which
participate in negotiating or executing our agreement $3,700 is an outplacement credit. All unvested share
with Jasper. In light of Mr. Tyabji’s relationship with awards granted to Mr. Cinco were irrevocably forfeited
Jasper, the Board reviewed and approved our continued when he terminated employment with us. He is also
business dealings with Jasper. eligible for up to 12 months of COBRA payments.
Mr. Cinco was compensated at levels comparable to the
Brian J. Dunn compensation paid to non-family members in similar
Brian J. Dunn is our President and Chief Operating positions at Best Buy.
Officer. Mr. Dunn serves on the board of directors of
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