THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Best Buy Co., Inc. (BBY)

5/18/2006 Proxy Information

It is our policy not to participate in material related party transactions with officers, directors, controlling persons and other insiders unless the transaction provides us with a demonstrable incremental benefit and terms are competitive with terms available from unaffiliated third parties. If a material related party transaction is proposed, the Audit Committee reviews the transaction to determine whether the necessary incremental benefit is present and whether the transaction should be recommended to the Board for approval. Members of the Board who have no financial interest in the transaction then review and, if appropriate, approve the transaction. In addition, ongoing related party transactions are reviewed periodically by the Board to ensure that such transactions remain at arm’s length and continue to provide the necessary incremental benefit to us.

We have a policy of not participating in real estate transactions with officers, directors, controlling persons and other insiders unless they are approved by the members of the Board who have no financial interest in the transaction. The Board must determine that any real estate transaction with an insider has terms that are competitive with terms available from unaffiliated third parties.

The Avalon Group is a real estate development partnership in which Mr. Trestman and Mr. Trestman’s son-in-law each own respective one-third interests. Mr. Trestman is solely a passive partner, with the other partners responsible for operations. We are negotiating with The Avalon Group to lease space for a retail store located in a development in which The Avalon Group has an interest. If the negotiations are successful, Mr. Trestman and his son-in-law would each own a 20% interest in the property we would lease. Our real estate department has determined that the proposed rental payments are competitive with the real estate market in the targeted geographic area. Before we enter into the agreement, the Board will review the terms of the agreement to ensure it is at arm’s length, is in our best interest, and complies with our real estate and related party transactions policies.

Matthew H. Paull, a director, is corporate senior executive vice president and chief financial officer of McDonald’s Corporation. During fiscal 2006, we had a co-marketing agreement with McDonald’s. The co-marketing agreement required us to provide coupons and gift cards redeemable for Best Buy merchandise and services in exchange for promotional advertising in which our tradename and logo were featured. The approximate retail value of coupons and gift cards redeemed in fiscal 2006 in connection with the promotion was $6.1 million. We had entered into similar co-marketing agreements with McDonald’s in fiscal 2005 and 2004, and we may engage in similar promotional activities with McDonald’s in the future. Mr. Paull did not participate in negotiating the agreements or in executing the final agreements.

Elliot S. Kaplan, a director, is a partner with the law firm of Robins, Kaplan, Miller & Ciresi L.L.P. (“RKMC”), which serves as our primary outside general counsel.

The Board periodically reviews the fees paid to RKMC to ensure that they are competitive with fees charged by other law firms comparable in size and expertise. We paid approximately $6.6 million in legal fees to RKMC during the fiscal year ended February 25, 2006. The Board had approved the transactions with RKMC and our continued business dealings with the firm.

Jane K. Kirshbaum is employed with us as Senior Corporate Counsel and is Mr. Kaplan’s daughter. During fiscal 2006, Ms. Kirshbaum received approximately $172,000 in base salary and short-term incentives, and was awarded options to purchase 1,801 shares of Best Buy Common Stock at an exercise price of $46.80 per share and 901 restricted shares. The stock options expire in November 2015, and the restricted shares are scheduled to vest at the end of an incentive period ending on February 28, 2009, based on our achievement of certain performance goals during such period. Ms. Kirshbaum was compensated at levels comparable to the compensation paid to non-family members in similar positions.

Ronald James, a director, is president and chief executive officer of the Center for Ethical Business Cultures (“CEBC”). CEBC is an independent, nonprofit organization affiliated with the University of St. Thomas. We have been a corporate member of CEBC since 1998 and have paid annual membership dues of $7,500 per year. Through our membership, we are able to share ideas and exchange information, such as best practices for fostering and promoting ethical responsibility, with other CEBC corporate members.

In June 2002, Richard M. Schulze, a founder of Best Buy and our Chairman of the Board, relinquished his duties as our Chief Executive Officer. At that time, we entered into an arrangement with Mr. Schulze to pay him an annual salary of $1 million, with annual increases based on the consumer price index, for as long as he is physically and mentally proficient to act as Chairman, subject to his election as a director by our shareholders. Mr. Schulze’s responsibilities as Chairman include Board oversight, strategic planning and mentoring company officers. Mr. Schulze also periodically represents Best Buy at public functions and actively engages with employees at designated company functions. We reimburse Mr. Schulze for business-related expenses. During the fiscal year ended February 25, 2006, we also reimbursed him approximately $11,000 in the aggregate for an automobile expense allowance and a country club membership. We also provide health insurance benefits for Mr. Schulze and his spouse. Mr. Schulze continues to participate in our Deferred Compensation Plan and is eligible to receive the stock options granted annually to our directors. Mr. Schulze is not eligible to participate in any of our other incentive compensation programs or the Employee Stock Purchase Plan.

We lease two of our U.S. Best Buy stores from Mr. Schulze. Aggregate rents paid for the two stores leased from Mr. Schulze during fiscal 2006 were approximately $950,000. The leases include escalation clauses, and one provides for percentage rent based on gross sales. During fiscal 2006, we renewed both leases. One lease now expires in 2008, and the other lease expires in 2011. Both leases contain renewal options that could extend the leases through 2021, at our option. We entered into the real estate leases with Mr. Schulze prior to 1990, and the Board negotiated and approved the leases (with Mr. Schulze not voting). The Board relied on one or more of its members who had no financial interest in the properties to review market comparisons, look into alternative rental agreements and negotiate with Mr. Schulze. The Board decided that these real estate leases were in our best interest.

We also lease, on a non-exclusive basis, airplanes from a corporation owned by the Richard M. Schulze Revocable Trust, of which Mr. Schulze is a trustee. Periodically, the Board reviews the terms of the lease agreement to ensure that they are no less favorable than terms available from unaffiliated third parties. We pay an hourly rate for use of the airplanes, without any required fractional ownership. Our senior management generally use the airplanes when it is more economical or practical than flying commercial airlines. The total amount paid to Mr. Schulze’s corporation for use of the airplanes during fiscal 2006 was approximately $456,000.

We purchase certain store fixtures from Phoenix Fixtures, Inc. (“Phoenix”), a company owned by Mr. Schulze’s brother. The decision to conduct business with Phoenix was based on both qualitative and quantitative factors including product quality, pricing, customer service and design flexibility. The Board reviewed our transactions with Phoenix and determined that the transactions were at arm’s length and that Phoenix provides significant advantages with respect to service and delivery. Accordingly, the Board has approved the transactions and our continued business dealings with Phoenix. The total amounts paid to Phoenix during fiscal 2006 were approximately $18 million.

Susan S. Hoff, our former Senior Vice President and Chief Communications Officer, is Mr. Schulze’s daughter. During fiscal 2006, Ms. Hoff received approximately $541,000 in base salary and short-term incentives, and was awarded options to purchase 26,133 shares of Best Buy Common Stock at an exercise price of $46.80 per share. The stock options expire in November 2015.

Brian Kraft is employed with us as a sales representative in our Commercial Sales group and is Mr. Schulze’s stepson. During fiscal 2006, Mr. Kraft received approximately $81,000 in base salary and short-term incentives.

Mr. Schulze’s family members were compensated at levels comparable to the compensation paid to non-family members in similar positions.

5/20/2005 Proxy Information

In June 2002, Richard M. Schulze, a Founder of Best Buy and our Chairman of the Board, relinquished his duties as our Chief Executive Officer. At that time, we entered into an arrangement with Mr. Schulze to pay him an annual salary of $1 million, with annual increases based on the consumer price index, for as long as he is physically and mentally proficient to act as Chairman, subject to his election as a director by our shareholders. We reimburse Mr. Schulze for business-related expenses. During the fiscal year ended February 26, 2005, we also reimbursed him approximately $11,000 in the aggregate for an automobile expense allowance and a country club membership. We also provide health insurance benefits for Mr. Schulze and his spouse. Mr. Schulze continues to participate in our Deferred Compensation Plan and is eligible to receive the stock options granted annually to our directors. Mr. Schulze is not eligible to participate in any of our other incentive compensation programs or the Employee Stock Purchase Plan.

We lease two of our U.S. Best Buy stores from Mr. Schulze. Aggregate rents paid for the two stores leased from Mr. Schulze during fiscal 2005, were approximately $950,000. The leases include escalation clauses and one provides for percentage rent based on gross sales. The leases expire in 2006, but can be renewed through 2021 at our option. We entered into both of the real estate leases with Mr. Schulze prior to 1990, and the Board negotiated and approved the leases (with Mr. Schulze not voting). The Board relied on one or more of its members who had no financial interest in the properties to review market comparisons, look into alternative rental agreements and negotiate with Mr. Schulze. The Board decided that these real estate leases were in our best interest.

We have a policy of not participating in real estate transactions with officers, directors, controlling persons and other insiders unless they are approved by the members of the Board who have no financial interest in the transaction. Prior to Board approval, the Finance and Investment Policy Committee must first determine that any real estate transaction with an insider has terms that are competitive with terms available from unaffiliated third parties.

We also lease, on a non-exclusive basis, airplanes from a corporation owned by the Richard M. Schulze Revocable Trust, of which Mr. Schulze is a trustee. Periodically, the Board reviews the terms of the lease agreement to ensure that they are no less favorable than terms available from unaffiliated third parties. We pay an hourly rate for use of the airplanes, without any required fractional ownership. Our senior management generally use the airplanes when it is more economical or practical than flying commercial airlines. The total amount paid to Mr. Schulze's corporation for use of the airplanes during fiscal 2005 was approximately $380,000.

We purchase certain store fixtures from Phoenix Fixtures, Inc. ("Phoenix"), a company owned by Mr. Schulze's brother. The decision to conduct business with Phoenix was based on both qualitative and quantitative factors including product quality, pricing, customer service and design flexibility. The Board reviewed our transactions with Phoenix and determined that the transactions were at arm's length and that Phoenix provides significant advantages with respect to service and delivery. Accordingly, the Board has approved the transactions and our continued business dealings with Phoenix. The total amounts paid to Phoenix during fiscal 2005 were approximately $20 million.

Susan S. Hoff, our Senior Vice President and Chief Communications Officer, is Mr. Schulze's daughter. During fiscal 2005, Ms. Hoff received approximately $530,000 in base salary and short-term incentives, and was awarded options to purchase 16,150 shares of Best Buy Common Stock at a price of $55.09 per share and 2,755 restricted shares. The stock options expire in October 2014, and the restricted shares vest over a three-year period in a range from 0% to 200% based on our achievement of certain performance goals during such period.

Before his resignation in December 2004, Duane D. Hoff served as our Vice President — Business Development. Mr. Hoff is Mr. Schulze's son-in-law. During fiscal 2005, Mr. Hoff received approximately $160,000 in base salary and short-term incentives and was awarded options to purchase 5,985 shares of Best Buy common stock at a price of $55.09 per share and 950 restricted shares. The stock options and the restricted shares were canceled upon his resignation.

Mr. Schulze's family members were compensated at levels comparable to the compensation paid to non-family members in similar positions.

Ronald James

Ronald James, a director, is president and chief executive officer of the Center for Ethical Business Cultures ("CEBC"). CEBC is an independent, non-profit organization affiliated with the University of St. Thomas. In May and June of 2004, CEBC provided ethics training for our management team. We paid CEBC approximately $44,000, including reimbursement for out-of-pocket expenses, in exchange for training services and materials. We do not intend to engage CEBC for further training services during Mr. James' tenure on the Board. In addition, we have been a corporate member of CEBC since 1998 and have paid annual membership dues of $7,500 per year. Through our membership, we are able to share ideas and exchange information, such as best practices for fostering and promoting ethical responsibility, with other CEBC corporate members. The total amount paid to CEBC during fiscal 2005 was approximately $51,000.

Elliot S. Kaplan

Elliot S. Kaplan, a director, is a partner with the law firm of Robins, Kaplan, Miller & Ciresi L.L.P. ("RKMC"), which serves as our primary outside general counsel. The Board periodically reviews the fees paid to RKMC to ensure that they are competitive with fees charged by other law firms comparable in size and expertise. We paid approximately $5.5 million in legal fees to RKMC during the fiscal year ended February 26, 2005. In addition, RKMC earned a contingent fee of $5.6 million in connection with the settlement of our claims against two credit card companies, which we believe resulted in a significantly greater recovery for us than we would have received if we had not opted out of a related class action lawsuit against the same defendants. The Board had approved the transactions with RKMC and our continued business dealings with the firm.

Jane K. Kirshbaum is employed with us as Senior Corporate Counsel and is Mr. Kaplan's daughter. During fiscal 2005, Ms. Kirshbaum received approximately $165,000 in base salary and short-term incentives, and was awarded options to purchase 1,365 shares of Best Buy Common Stock at a price of $55.09 per share and 630 restricted shares. The stock options expire in October 2014, and the restricted shares vest over a three-year period in a range from 0% to 200% based on our achievement of certain performance goals during such period.

Before his resignation in March 2005, Michael J. Stillman was employed with us as Director — Business Group Manager. Mr. Stillman is Mr. Kaplan's stepson. During fiscal 2005, Mr. Stillman received approximately $260,000 in base salary and short-term incentives, and was awarded options to purchase 3,495 shares of Best Buy Common Stock at a price of $55.09 per share and 690 restricted shares. The stock options and the restricted shares were canceled upon his resignation.

Mr. Kaplan's family members were compensated at levels comparable to the compensation paid to non-family members in similar positions.

Matthew H. Paull

Matthew H. Paull, a director, is corporate senior executive vice president and chief financial officer of McDonald's Corporation. In June 2004, we entered into a co-marketing agreement with McDonald's. The co-marketing agreement required us to provide coupons and gift cards redeemable for Best Buy merchandise and services in exchange for promotional advertising in which our tradename and logo were featured. The approximate retail value of coupons and gift cards redeemed in connection with the promotion was $1.8 million. We had entered into a similar co-marketing agreement with McDonald's in fiscal 2004, and we may engage in similar promotional activities with McDonald's in the future.

Robert A. Willett

Robert A. Willett is our Executive Vice President — Operations. Prior to joining us, Mr. Willett was the global managing partner for the retail practice at Accenture and a member of Accenture's executive committee. In connection with his former employment, Mr. Willett acquired shares of Accenture Class A common stock. We have routinely engaged Accenture as an outside consultant since 1996. In 2004, we engaged Accenture to assist us with improving our operational capabilities and reducing our costs in the human resources and information technology areas. Mr. Willett sold all of his shares of Accenture Class A common stock on January 26, 2005.

5/14/2004 Proxy Information

Legal Proceedings

We have been served with a shareholder derivative action venued in Hennepin County, State of Minnesota District Court. The lawsuit alleges violations of state law relative to fiduciary responsibilities, control and management of the Company and unjust enrichment. The plaintiffs seek judgment in favor of the Company against certain named officer and director defendants for damages, equitable relief and attorneys' fees, costs and expenses. By agreement of the parties, and with Court approval, this case was put on inactive status. Based on the Company's information and belief, the claims against the named officer and director defendants are without merit and will be vigorously defended.

Richard M. Schulze

We lease two of our U.S. Best Buy stores from Richard M. Schulze, our Founder and Chairman. Aggregate rents paid by us to Mr. Schulze during the fiscal year ended February 28, 2004, were approximately $950,000. The leases include escalation clauses and one provides for percentage rent based on gross sales. The leases expire in 2006, not including renewal options which exist in both cases.

We entered into both of the real estate leases with Mr. Schulze prior to 1990, and the Board negotiated and approved the leases (with Mr. Schulze not voting). The Board relied on one or more of its members who had no financial interest in the properties to review market comparisons, look into alternative rental agreements and negotiate with Mr. Schulze. The Board decided that these real estate leases were in our best interest. We have a policy of not participating in real estate transactions with officers, directors, controlling persons and other insiders unless they are approved by the members of the Board who have no financial interest in the transaction. Prior to Board approval, the Finance and Investment Policy Committee must first determine that any real estate transaction with an insider has terms that are competitive with terms available from unaffiliated third parties.

We also lease, on a non-exclusive basis, airplanes from a corporation owned by Mr. Schulze and the Sandra Schulze Revocable Trust dated June 14, 2001 (the "Corporation"). Periodically, we review the lease agreement to ensure that the terms are no less favorable than terms available from unaffiliated third parties. We pay an hourly rate to the Corporation for use of the airplanes, without any required fractional ownership. Our senior management generally use the airplanes when it is more economical or practical than flying commercial airlines. The total amount paid to the Corporation for use of the airplanes during the fiscal year ended February 28, 2004, was approximately $550,000.

In June 2002, Mr. Schulze relinquished his duties as our Chief Executive Officer. We entered into an arrangement with Mr. Schulze to pay him an annual salary of $1 million, with annual increases based on the consumer price index, for as long as he is physically and mentally proficient to act as Chairman, subject to his election as a director by our shareholders. In addition, we reimburse Mr. Schulze for business-related expenses and provide him with health insurance benefits and an automobile expense allowance. Mr. Schulze may also continue to participate in our Deferred Compensation Plan. Mr. Schulze is not eligible to participate in any of our incentive compensation programs or the Best Buy Co., Inc. 2003 Employee Stock Purchase Plan ("ESPP").

Ronald James

Ronald James, a director, is president and chief executive officer of the Center for Ethical Business Cultures ("CEBC"). In April 2004, we entered into an agreement with CEBC to provide ethics training for our management team. The agreement requires us to pay CEBC $40,100, plus reimbursement for out-of-pocket expenses, in exchange for training services and materials. In addition, we have been a corporate member of CEBC since 1998 and have paid annual membership dues of $7,500 per year. Through our membership, we are able to share ideas and exchange information, such as best practices for fostering and promoting ethical responsibility, with other CEBC corporate members. The total fees and membership dues paid to CEBC during fiscal 2004 were approximately $9,400.

Elliot S. Kaplan

Elliot S. Kaplan, a director, is a partner with the law firm of Robins, Kaplan, Miller & Ciresi L.L.P., which serves as our outside general counsel. The total legal fees paid to Robins, Kaplan, Miller & Ciresi L.L.P. during calendar year 2003 were approximately $4.1 million.

Matthew H. Paull

Matthew H. Paull, a director, is an executive vice president and the chief financial officer of McDonald's Corporation. In March 2003, we entered into a co-marketing agreement with McDonald's. The co-marketing agreement required us to provide coupons and gift cards redeemable for Best Buy merchandise and services in exchange for promotional advertising in which our tradename and logo were featured. The approximate retail redemption value of this agreement was $3.3 million. We may engage in similar promotional activities with McDonald's in the future.

James C. Wetherbe

James C. Wetherbe, a director and the Stevenson Professor of Management Information Systems at Texas Tech University, occasionally speaks at Best Buy functions. The fees for these services are donated directly to the Texas Tech University Foundation on behalf of Dr. Wetherbe. The total speaking fees donated to the Texas Tech University Foundation on Dr. Wetherbe's behalf during fiscal 2004 were approximately $5,000.

We also entered into a sponsorship agreement with the College of Business Administration at Texas Tech University. We agreed to contribute a maximum of $500,000 for research in the area of Internet buyer behavior and the establishment of the University's Best Buy Institute for Internet Buyer Behavior Research. Under the sponsorship agreement, we have limited exclusive rights to use the findings of the research conducted by the Institute. Dr. Wetherbe serves as Executive Director of the Institute but receives no compensation for such position. During fiscal 2004, we contributed $125,000 pursuant to the sponsorship agreement.

Robert A. Willett

Robert A. Willett was named our Executive Vice President – Operations in April 2004. In April 2002, we engaged Mr. Willett as a consultant and special advisor to our Board on matters relating to operational efficiency and excellence. In fiscal 2004, we paid Mr. Willett consulting fees of $238,796, accrued consulting fees totaling $384,245 which were paid in April 2004, and reimbursed him for out-of-pocket expenses totaling $209,311.

Prior to his engagement with us, Mr. Willett was the global managing partner for the retail practice at Accenture Ltd, a global management consulting, technology services and outsourcing company. In addition, he was a member of Accenture's executive committee through August 2002. We have regularly engaged Accenture as an outside consultant since 1996.

As our Executive Vice President – Operations, Mr. Willett's responsibilities include reducing our cost structure, increasing our speed to market and supporting our customer centricity initiative.

We engaged Accenture in January 2004 to assist us with improving our operational capabilities and reducing our costs in the Human Resources area, and intend to engage Accenture for a similar project in the Information Systems area, subject to approval of our Finance and Investment Policy Committee. Mr. Willett is one of four Best Buy executives involved in negotiating the terms of our engagements with Accenture, together with the assistance of Technology Partners International (TPI), an independent consultant. Mr. Willett receives no compensation from Accenture as a result of his prior service with Accenture or our engagements with Accenture.

Mr. Willett beneficially owns 196,964 shares of Accenture's Class A common stock. Such shares are restricted and may only be sold in transactions approved by Accenture. Mr. Willett has committed to sell such shares as soon as possible in the next Accenture-approved transaction or series of transactions.

5/20/2003 Proxy Information

We lease two of our Best Buy stores from Mr. Schulze and until December 2002, we leased one of our Best Buy stores from a partnership in which Mr. Schulze is a partner (the "Partnership"). Aggregate rents paid by us to Mr. Schulze and the Partnership during the fiscal year ended March 1, 2003, were approximately $1,300,000. The remaining leases include escalation clauses and one provides for percentage rent based on gross sales. One lease expires in 2004 and the other in 2006, not including renewal options which exist in both cases.

We entered into all of the real estate leases with Mr. Schulze and the Partnership prior to 1990, and the Board negotiated and approved the leases (with Mr. Schulze not voting). The Board relied on one or more of its members who had no financial interest in the properties to review market comparisons, look into alternative rental agreements and negotiate with Mr. Schulze. The Board decided that these real estate leases were in our best interest. We have a policy of not participating in real estate transactions with officers, directors, controlling persons and other insiders unless they are approved by the members of the Board who have no financial interest in the transaction. Prior to Board approval, the Finance and Investment Policy Committee of the Board must first determine that any real estate transaction with an insider has terms that are competitive with terms available from unaffiliated third parties.

We also lease, on a non-exclusive basis, airplanes from a corporation owned by Mr. Schulze and the Trust (the "Corporation"). Annually, we review the lease agreement to ensure that the terms are more favorable than terms available from unaffiliated third parties. We pay an hourly rate to the Corporation for use of the airplanes, without any required fractional ownership. Our senior management generally use the airplanes when it is more economical or practical than flying commercial airlines. The total amount paid to the Corporation during the fiscal year ended March 1, 2003, was approximately $600,000.

Effective June 30, 2002, Mr. Schulze relinquished his duties as our Chief Executive Officer. We entered into an arrangement with Mr. Schulze to pay him an annual salary of $1 million, with annual increases based on the consumer price index, for as long as he is physically and mentally proficient to act as Chairman, subject to his election as a director by our shareholders. In addition, we reimburse Mr. Schulze for business-related expenses and provide him with health insurance benefits and an automobile expense allowance. Mr. Schulze may also continue to participate in our Deferred Compensation Plan and is eligible for the employer match. Mr. Schulze is not eligible to participate in any of our incentive compensation programs.

Mr. Kaplan is a partner with the law firm of Robins, Kaplan, Miller & Ciresi L.L.P., which serves as our outside general counsel. The total legal fees paid to Robins, Kaplan, Miller & Ciresi L.L.P. during calendar 2002 were approximately $4,200,000.

In January 2001, in connection with the acquisition of Musicland, we entered into a four-year consulting agreement with Mr. Eugster, the former chairman, president and chief executive officer of Musicland. For his services, Mr. Eugster receives consulting fees of $1 million per year plus reasonable business expenses. We also make contributions of up to $100,000 per fiscal year out of our regular charitable contribution budget to charitable organizations of Mr. Eugster's choice, subject to our charitable giving objectives. The fees paid to Mr. Eugster pursuant to the consulting agreement are in lieu of cash compensation as a Best Buy director. However, Mr. Eugster is entitled to receive options to purchase Best Buy Common Stock when such options are issued to our directors generally.

In addition to his normal Board duties, Dr. Wetherbe occasionally speaks at company functions. The fees for these services are donated directly to the Texas Tech University Foundation on behalf of Dr. Wetherbe. The total fees donated to the Texas Tech University Foundation on Dr. Wetherbe's behalf during fiscal 2003 were approximately $15,000.

Mr. Thompson has been a member of the board of directors of Korn Ferry International (KFI) since 2000. We have used the services of KFI as well as other search firms for over ten years. Mr. Thompson is not involved in the selection of any search firms we engage nor does he have a personal financial interest in the services provided by KFI to us. The total fees paid to KFI during fiscal 2003 were approximately $186,000.

In May 2001, we loaned funds to Darren R. Jackson, Executive Vice President — Finance and Chief Financial Officer, to assist Mr. Jackson with relocation expenses. The loan was evidenced by a promissory note payable to Best Buy in the original principal amount of $162,662. The note bore interest at a rate of 5% per year payable annually and was set to mature on September 18, 2003. The largest amount outstanding during the fiscal year ended March 1, 2003, was $116,574. Mr. Jackson repaid the note in full in fiscal 2003, prior to its maturity.