Document:

Exhibit 10.2

 

Virginia H. Randt

The Hearst Corporation

959 Eighth Avenue

New York, NY 10019

 

 

Board of Directors

Hearst-Argyle Television, Inc.

888 Seventh Avenue, 27th 
Floor

New York,  NY 10106

 

 

October 4, 2005

 

 

Dear Board Members,

 

Unfortunately, I find that my future plans will not allow me to devote
the necessary time to the duties of a Hearst-Argyle Board member.  As a consequence, I herewith submit my
resignation from the Board of Directors of Hearst-Argyle Television effective October 5,
2005.  I will continue to serve as a
Trustee of the Hearst Family Trust and on the Boards of The Hearst Corporation
and the Hearst Foundations and their committees.

 

For the past eight years it has been an honor to serve with all of you
on the Board of Hearst-Argyle Television.

 

	
  Sincerely,

  
	
   

  
	
  /s/ Virginia H. RandtExhibit 10.1

 

BEST BUY CO., INC.

 

1997

EMPLOYEE NON-QUALIFIED

STOCK OPTION PLAN

 

2005 AMENDMENT AND RESTATEMENT

 

A.            Purpose.

 

The purpose of this Employee
Non-Qualified Stock Option Plan (“Plan”) is to further the growth and general
prosperity of Best Buy Co., Inc. (the “Company”), and its directly and
indirectly wholly-owned subsidiaries (collectively, the “Companies”) by
enabling current key employees of the Companies, who have been or will be given
responsibility for the administration of the affairs of the Companies and upon
whose judgment, initiative and effort the Companies were or are largely
dependent for the successful conduct of their business, to acquire shares of
the common stock of the Company under the terms and conditions and in the
manner contemplated by this Plan, thereby increasing their personal involvement
in the Companies and enabling the Companies to obtain and retain the services
of such employees.  Options granted under
the Plan are intended to be options which do not meet the requirements of
Section 422A of the Internal Revenue Code of 1986, as amended (the “Code”).

 

B.            Administration.

 

This Plan shall be
administered by the Compensation and Human Resources Committee (the “Committee”)
of the Company’s Board of Directors (the “Board”).  Options may not be granted to any person while
serving on the Committee unless approved by a majority of the disinterested
members of the Board.  Subject to such
orders and resolutions not inconsistent with the provisions of this Plan as may
from time to time be issued or adopted by the Board, the Committee shall have
full power and authority to interpret the Plan and, to the extent contemplated
herein, shall exercise the discretion granted to it regarding participation in
the Plan and the number of shares to be optioned and sold to each participant.

 

All decisions,
determinations and selections made by the Committee pursuant to the provisions
of the Plan and applicable orders and resolutions of the Board shall be final.

 

C.            Eligibility and Participation.

 

Options may be granted under
the Plan to (i) key executive personnel, including officers, senior management
employees and members of the Board who are employees of any of the Companies;
(ii) staff employees, including managers, supervisors, and their functional
equivalents for:  warehousing, service,
merchandising, leaseholds, installation, and finance and administration; (iii)
line management employees, including retail store and field managers,
supervisors and their functional equivalents; and (iv) any employee having
served the Companies continuously for a period of not less than ten (10)
years.  The Committee shall grant to such
participants options to purchase shares in such amounts as the Committee shall
from time to time determine.

 

D.            Shares Subject to the Plan.

 

Subject to adjustment as
provided in Section E. herein, an aggregate of 60,000,000 shares of $0.10 par
value common stock of the Company shall be subject to this Plan from authorized
but unissued shares of the Company.  Such
number and kind of shares shall be appropriately adjusted in the event of any
one or more stock splits, reverse stock splits or stock dividends hereafter
paid or declared with respect to such stock. 
If, prior to the termination of the Plan, shares issued pursuant hereto
shall have been repurchased by the Company pursuant to this Plan, such
repurchased shares shall again become available for issuance under the Plan.

 

Any shares which, after the
effective date of this Plan, shall become subject to valid outstanding options
under this Plan may, to the extent of the release of any such shares from
option by termination or expiration of option(s) without valid exercise, be
made the subject of additional options under this Plan.

 

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E.             Adjustments Upon Changes in
Capitalization.

 

In the event of a merger,
consolidation, reorganization, stock dividend, stock split, or other change in
corporate structure or capitalization affecting the common stock of the
Company, an appropriate adjustment may be made in the number and kind of shares
subject to and the exercise prices of options granted under the Plan as
determined by the Committee.

 

F.             Terms and Conditions of Options.

 

The Committee shall have the
power, subject to the limitations contained in this Plan, to prescribe any
terms and conditions in respect of the granting or exercise of any option under
this Plan and, in particular, shall prescribe the following terms and
conditions:

 

(1)           Each option shall state the number of
shares to which it pertains.

 

(2)           The price at which shares shall be sold
to participants hereunder (the “Exercise Price”) shall be the Fair Market Value
of the Company’s common stock on the date of grant.  Except as otherwise provided herein, payment
of the Exercise Price shall be made (a) if payment is made by check payable to
the Company, at the time the shares are sold hereunder, or (b) if payment is
made pursuant to an irrevocable election to surrender outstanding shares of
common stock of the Company which have a Fair Market Value on the date of
surrender equal to the Exercise Price of the shares as to which the option is
being exercised, no later than the settlement date for the shares sold in the
market to cover the Exercise Price, or (c) by a combination thereof, unless
an option is exercised in connection with a deferral election pursuant to the
Deferred Compensation Plan, defined below, in which case payment of the
Exercise Price shall be made as provided in Section N herein.  However, the provisions of subparts (b) and
(c) of this Section F.(2) shall not be applicable to options granted to
directors, officers or employees of Companies that are resident in Canada
within the meaning of applicable federal or provincial tax laws of that
country.

 

(3)           The vested portion of an option shall be
exercisable in whole or in part with respect to the shares included therein
until the earlier of (a) the close of business on the tenth day prior to the
proposed effective date of (i) any merger or consolidation of the Company with
any other corporation or entity as a result of which the holders of the common
stock of the Company will own less than a majority voting control of the
surviving corporation; (ii) any sale of substantially all of the assets of the
Companies or (iii) any sale of common stock of the Company to a person not a
shareholder on the date of issuance of the option who thereby acquires majority
voting control of the Company, subject to any such transaction actually being
consummated, or (b) the close of business on the date ten (10) years after the
date the option was granted.  The Company
shall give written notice to the optionee not less than 30 days prior to the
proposed effective date of any of the transactions described in (a) above.

 

(4)           Except in the event of disability, death
or normal retirement, an option shall be exercisable with respect to the shares
included therein not earlier than the date one (1) year following the date of
grant of the option, nor later than the date ten (10) years following the date of
grant of the option; provided, however, that during the second through fourth
years following the date of grant, the optionee may exercise such optionee’s
right to acquire only twenty-five percent (25%) of the shares subject to such
option together with any shares that the optionee had previously been able to
acquire; and provided further, however, that in the event of a change in status
of an employee from full-time or part-time to occasional/seasonal, such
employee shall continue to have the right to exercise an option following such
change in status but only to the extent of the shares available for acquisition
on the date of such change in status (the “Change in Status Date”).

 

(5)           Except as in the event of disability,
death or normal retirement, an option may be exercised only by the optionee
while such optionee is, and has continually been, since the date of the grant
of the option, an employee of any of the Companies; provided, however, that a
former employee shall continue to have the right to exercise an option for a
period of sixty (60) days following such termination to the extent of the
shares available for acquisition on the date of such former employee’s
termination but in no event later than the date ten (10) years after the date
of grant of such option.  Such sixty (60)
day period

 

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commences on the date
such optionee first ceases regular and active employment with any of the
Companies.  For greater certainty, a
Company may, but has no obligation to, notify any such optionee as to when they
have ceased to be regularly and actively employed by any of the Companies, and
such notice shall be conclusive evidence of such cessation.  If the continuous employment of an optionee
terminates by reason of disability, death or normal retirement, an option
granted hereunder held by the disabled, deceased or retired employee may be
exercised to the extent of all shares subject to the option (or, with respect
to a disabled, deceased or retired occasional/seasonal employee, to the extent
of the shares available for acquisition on the Change in Status Date) within
one (1) year following the date of disability or death or five (5) years
following the date of normal retirement, but in no event later than ten (10) years
after the date of grant of such option, by the disabled or retired employee or
the person or persons to whom the deceased employee’s rights under such option
shall have passed by will or by the applicable laws of descent and
distribution.  For purposes of this Plan
only, (a) an employee shall be deemed “disabled” if the employee is unable to
perform any of his or her material and substantial duties for the Companies due
to a sickness or injury, and such inability to perform continues for at least
six (6) consecutive months, and (b) “normal retirement” shall mean retirement
on or after age 60 so long as the employee has served the Companies
continuously for at least the three (3) years immediately preceding
retirement.  Notwithstanding the
foregoing, the changes made in Sections F(4) and (5) pursuant to the amendments
hereto adopted on April 24, 1998 (relating to the vesting of options in the
event of normal retirement), shall be effective only for options granted
hereunder on and after April 24, 1998.

 

(6)           An option shall be exercised when notice
of such exercise, either in writing or orally, has been given to the Company at
its principal business office or to its designated agent by the person entitled
to exercise the option and full payment for the shares with respect to which
the option is exercised has been received by the Company.  Until the stock certificates are issued, no
right to vote or receive dividends or any other rights as a shareholder shall
exist with respect to optioned shares, notwithstanding the exercise of the
option.

 

(7)           Each optionee shall be obligated to
comply with applicable policies of the Companies.  For purposes of this Plan only, the
occurrence of any of the following events shall constitute a breach of such
obligation and shall result in the immediate termination of all the optionee’s
options granted pursuant to the Plan and all rights there under, including
without limitation the 60-day grace period following termination of the
optionee’s employment as provided in Section F(5):

 

(i)            The
optionee breaches his or her obligations of confidentiality to the Companies;

 

(ii)           The
optionee commits an act, or omits to take action, in bad faith which results in
material detriment to the Companies;

 

(iii)          The
optionee violates the Companies’ Conflict of Interest policy (unless authorized
by state or federal law);

 

(iv)          The
optionee commits fraud, misappropriation, embezzlement or other act of
dishonesty, including theft or misuse of the Companies’ property, equipment or
store merchandise or violates or abuses the Companies’ discount policy, in
connection with the Companies or their businesses;

 

(v)           The
optionee is convicted or has pleaded guilty or nolo contendere to criminal
misconduct constituting a felony or a gross misdemeanor, which gross
misdemeanor involves a breach of

 

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ethics,
moral turpitude, or immoral or other conduct reflecting adversely upon the
reputation or interest of the Companies;

 

(vi)          The
optionee’s use of narcotics, liquor or illicit drugs has had a detrimental
effect on his or her performance of employment responsibilities; or

 

(vii)         The
optionee is in material default under any agreement between him or her and the
Companies following any applicable notice and cure period.

 

This Section F(7) shall
be effective only for options granted hereunder on and after April 16, 1999.

 

G.            Options Not Transferable.

 

Options under the Plan may
not be sold, pledged, assigned or transferred in any manner, whether by
operation of law or otherwise except by will or the laws of descent, and may be
exercised during the lifetime of an optionee only by such optionee.

 

H.            Amendment or Termination of the
Plan.

 

The Board may amend this
Plan from time to time as it may deem advisable and may at any time terminate
the Plan, provided that any such termination of the Plan shall not adversely
affect options already granted and such options shall remain in full force and
effect as if the Plan had not been terminated.

 

I.              Agreement and Representations of
Optionees.

 

As a condition precedent to
the exercise of any option or portion thereof, the Company may require the
person exercising such option to represent and warrant at the time of any such
exercise that the shares are being purchased only for investment and without
any present intention to sell or distribute such shares if, in the opinion of
counsel for the Company, such a representation is required under the Securities
Act of 1933 or any other applicable law, regulation or rule of any governmental
agency.

 

In the event legal counsel
to the Company renders an opinion to the Company that shares for options
exercised pursuant to this Plan cannot be issued to the optionee because such
action would violate any applicable federal or state securities laws, then in
that event the optionee agrees that the Company shall not be required to issue
said shares to the optionee and shall have no liability to the optionee other
than the return to optionee of amounts tendered to the Company upon exercise of
the option.

 

J.             Effective Date and Termination of
the Plan.

 

The Plan shall become
effective as of April 18, 1997, if approved thereafter by the Company’s
shareholders.  The Plan shall terminate
on the earliest of:

 

(1)           The date when all the shares available under
the Plan shall have been acquired through the exercise of options granted under
the Plan; or

 

(2)           Ten (10) years after the date of approval of
the Plan by the Company’s shareholders; or

 

(3)           Such other earlier date as the Board may
determine.

 

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K.            Withholding Taxes.

 

The Companies shall have the
right to take any action that may be necessary in the opinion of the Companies
to satisfy all obligations for the payment of any federal, state or local taxes
of any kind, including FICA taxes, required by law to be withheld with respect
to the exercise of an option granted hereunder. 
If stock is withheld or surrendered to satisfy tax withholding, such
stock shall be the Fair Market Value of the Company’s common stock on the date
of exercise; provided, however, that no stock may be withheld or surrendered to
satisfy tax withholding obligations under applicable laws of Canada or any
province thereof.

 

L.            Fair Market Value.

 

“Fair Market Value” shall
mean the last reported sale price of the Company’s common stock on the date of
grant, as quoted on by the New York Stock Exchange.  If the Company’s common stock ceases to be
listed for trading on the New York Stock Exchange, “Fair Market Value” shall
mean the value determined in good faith by the Board.

 

M.           Compliance with Rule 16b-3 and
Section 162(m).

 

With respect to employees
subject to Section 16 of the Securities Exchange Act of 1934, as amended, or
Section 162(m) of the Code, transactions under the Plan are intended to comply
with all applicable conditions of such Rule 16b-3 and avoid loss of the
deduction referred to in paragraph (1) of such Section 162(m).  Anything in the Plan to the contrary
notwithstanding, to the extent any provision of the Plan or action by the Committee
fails to so comply or avoid the loss of such deduction, it shall be deemed null
and void, to the extent permitted by law and deemed advisable by the Committee.

 

N.            Deferral of Option Gain.

 

Participants in the Company’s
Deferred Compensation Plan, effective as of April 1, 1998 (the “Deferred
Compensation Plan”), may be able to defer the gain, if any, upon exercise of
options granted hereunder pursuant to and in accordance with the terms of the
Deferred Compensation Plan.  To the
extent that the Deferred Compensation Plan permits a participant to defer any
gain with respect to an option, the Exercise Price must be satisfied utilizing
shares of the Company’s common stock held at least six months prior to
exercise.  In the event a deferral
election is made with respect to an option, if the optionee is unable to
deliver the requisite number of shares of the Company’s common stock to cover
the full Exercise Price prior to the expiration of such option, the portion of
the option that corresponds to the portion of the full Exercise Price not
covered shall be forfeited.

 

O.            Form of Option.

 

Options shall be issued in
substantially the form as the Committee or the Board may approve.

 

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