Exhibit 10.2


                               BEST BUY CO., INC.
                                      1987
                   DIRECTORS' NON-QUALIFIED STOCK OPTION PLAN


A. PURPOSE.

         The purpose of this Directors' Non-Qualified Stock Option Plan ("Plan")
is to further the growth and general prosperity of Best Buy Co., Inc.
("Company") by enabling current directors of the Company, who have been or are
serving on the Board of Directors and upon whose judgment, initiative and effort
the Company was or is largely dependent for the successful conduct of its
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 Company. 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.

B. ADMINISTRATION.


         This Plan shall be administered by the Compensation Committee of the
Company's Board of Directors (the "Committee"). 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 of Directors, the Committee shall have
full power and authority to interpret the Plan.


         All decisions and determinations made by the Committee pursuant to the
provisions of the Plan and applicable orders and resolutions of the Board of
Directors shall be final. Each option granted shall be evidenced by a written
agreement containing such terms and conditions as may be approved by the
Committee and which shall not be inconsistent with the Plan and the orders and
resolutions of the Board of Directors with respect thereto.

C. ELIGIBILITY, PARTICIPATION AND GRANTS.

         Options shall be granted under the Plan to current members of the
Company's Board of Directors. The Committee shall grant to each director (i)
on such date as he or she first becomes a director of the Company, an option
to purchase 5,000 shares, and (ii) annually, at the first regular meeting of
the Board of Directors, an option to purchase 5,000 shares.


D. SHARES SUBJECT TO THE PLAN.

         Subject to adjustment as provided below, an aggregate of 900,000 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.

E. NO ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

         Except as expressly provided herein, in the event of a merger,
consolidation, reorganization, stock dividend, stock split, or other change in
corporate structure or capitalization affecting the common shares of the
Company, there shall be no change in the number of shares subject to options to
be granted thereafter pursuant to the Plan.

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 directors hereunder (the
     "Exercise Price") shall be the average of the closing price for the
     Company's stock, as quoted on the New York Stock Exchange, on the date
     immediately preceding the date of grant and the closing price for the stock
     on the date of grant. Payment of the Exercise Price shall be made at the
     time the shares are sold hereunder by check payable to the Company, or by
     surrender of 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, or by a combination
     thereof. For purposes of this Plan only, "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
     Company's Board of Directors.

     (3) An option shall be exercisable in whole or in part (but not as to less
     than twenty-five percent of the original aggregate amount of shares of
     common stock made subject to the option) 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 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; any sale
     of substantially all of the assets of the Company or any sale of common
     stock of the Company to a person not a stockholder 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)
     4:00 p.m., local standard time, in Minneapolis, Minnesota, on the date five
     (5) 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) An option shall be exercised when written notice of such exercise has
     been given to the Company at its principal business office 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.

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, the laws of descent or a qualified domestic relations order.

H. AMENDMENT OR TERMINATION OF THE PLAN.

         The Board of Directors of the Company 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 PARTICIPANTS.

         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 counselto 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 May 1, 1987 if approved
thereafter by the Stockholders of the Company. The Plan shall terminate on the
earliest of:

     (1) The date when all the common 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
     Stockholders of the Company; or

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

K. FORM OF OPTION.

         Options shall be issued in substantially the same form as Exhibit "A"
attached hereto or in such other form as the Compensation Committee or the Board
may approve.