Best Buy 2010 Annual Report Download - page 65

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options to purchase 3,000 shares of Best Buy common Avalon Group, with the other partners responsible for
stock at an exercise price of $37.59 per share, and operations. In fiscal 2007, we entered into a 10-year
options to purchase 3,000 shares of Best Buy common lease with Avalon-Timbercrest for a retail store located
stock at an exercise price of $39.73 per share. The in a development in which The Avalon Group has an
stock options expire in June 2019, September 2019 interest. Mr. Trestman and his son-in-law each own a
and January 2020, respectively, and vest ratably over 20% interest in the property we lease. Our real estate
four years. Ms. Hoff’s compensation was deemed department has determined that the rental payments
reasonable by the Compensation Committee based under the lease are competitive for the real estate
upon the responsibilities encompassed by her role. market in the relevant geographic area. In fiscal 2010,
we paid aggregate rents to Avalon-Timbercrest of
Frank D. Trestman approximately $884,000. In light of Mr. Trestman’s
relationship with Avalon-Timbercrest, the Board
The Avalon Group is a real estate development determined that the lease is in our best interest and has
partnership in which Frank D. Trestman, a director since terms that are competitive with terms available from
1984, and Mr. Trestman’s son-in-law each own unaffiliated third parties.
one-third interests. Mr. Trestman is the chairman of The
65