EMPLOYMENT AGREEMENT


June 27, 1990



Mr. John Froman
2595 Grist Mill Road
Marietta, GA  30067

Dear John:

         This letter will confirm the terms of your employment with Circuit City
Stores, Inc. (also referred to in this letter as the "Company"):

         1.       Salary and Bonus.  Your  current  base salary as an  Assistant
Vice  President of the Company is $117,500  per year.  You may also receive cash
bonuses under the Company's annual bonus programs.

         2.       Associate  Benefits.  You are entitled to  participate in such
Associate  benefit  programs  as the  Company  provides  from  time to time  for
Associates in your position. In addition to your Associate benefits, the Company
will  reimburse  you in accordance  with Company  policy for travel and business
expenses.

         3.       Confidentiality.  Your  position with the Company is such that
you have  access to Company  trade  secrets and other  confidential  information
about the Company's business.  Examples include information about Circuit City's
business  methods,  expansion  plans,  merchandising  and marketing  techniques,
training  techniques,  supplier  and  pricing  information,  internal  corporate
planning methods, systems and operating procedures.

                  This  information is a valuable Company asset and, if known by
competitors of the Company,  would cause  irreparable  harm to the Company.  You
realize this and,  therefore,  agree that you will not use for your own benefit,
or disclose to or use for the benefit of anyone other than the  Company,  any of
this  information,  whether you learned the information  before or after signing
this agreement and whether you leave employment with the Company.

         4.       Non-competition.  You  agree  that  during  the  time  you are
employed by the Company and for a period of 12  (twelve)  months  following  the
termination of your employment, you will not engage in material competition with
the  Company by becoming an owner of, an  employee  of, or a  consultant  to any
business  which is engaged in competition  with the Company.  A business will be
considered to be engaged in material  competition with the Company if it (or the
operating  unit  in  which  you  will  be  employed)  has  all of the  following
characteristics:

         a.       it has as all or part of its  business  (i) the retail sale of
                  consumer electronics and appliances (with or without providing
                  after-sale  service) or (ii) any other business  engaged in by
                  Circuit City before the termination of your employment;

         b.       more  than  5% of its  revenues  come  from  the  part  of its
                  business that is the same as Circuit City's; and

         c.       it operates in any  Metropolitan  Statistical  Area ("MSA") in
                  which the  Company is  operating  or in which the  Company has
                  publicly announced that it will operate within 12 months after
                  the time you leave the Company.

         5.       Non-solicitation.  You agree  that while you are  employed  by
Circuit City and for a period of two (2) years following the termination of your
employment,  you will not solicit,  or help anyone else  solicit,  other Circuit
City Associates to leave the Company.

         6.       Change of Control.  If your  employment  is  terminated by the
Company without cause within six (6) months after a change of control,  you will
not be required to comply with the non-compete provisions set forth in paragraph
4 above.

         Attachment  1 to this  letter  contains  the  definition  of "change of
control".

         7.       Remedies for Breach. If you breach the provisions of paragraph
3, 4, or 5, the Company will suffer  irreparable harm and the remedies available
to it other than your  compliance  with the provisions will not be sufficient to
make the Company whole.  You acknowledge that this is a true statement and agree
that if such a  breach  (or  threatened  breach)  occurs,  the  Company  will be
entitled to specific  performance and injunctive relief in addition to any other
remedies to which a court may find the Company is entitled.

         8.       Termination   with  Cause.   The  Company  may   terminate  an
Associate's   employment  at  any  time,  without  notice  and  without  further
obligation, for "cause." "Cause" means any one of the following:

         a.       the  Associate's  continued and deliberate  neglect of his/her
                  employment duties;

         b.       the Associate's  use,  possession,  or distribution of illegal
                  drugs on Company  property or time or evidence of habitual use
                  or distribution of such substances at any time;

         c.       deliberate  misconduct of the Associate in connection with the
                  performance  of  his/her  duties,   including,   for  example,
                  misappropriation  of  funds  or  property  of the  Company  or
                  accepting   bribes  or  kick-backs  in  connection   with  any
                  transaction entered into on behalf of the Company;

         d.       the  Associate's  failure  to  disclose  to  the  Company  and
                  personal interest he/she has in a Company transaction;

         e.       violation   of  the   confidentiality,   non-competition,   or
                  non-solicitation provisions contained in this agreement.

         9.       Termination Without Cause. Either the Associate or the Company
may terminate employment,  without cause, by giving the other written notice. It
will be considered a "without cause" termination by the Company if the Associate
resigns  within sixty (60) days after:  (i) a reduction in pay which is not part
of a prorata  reduction for all Associates at the same level, (ii) a significant
reduction in the  Associate's  responsibilities  (with or without a reduction in
pay), or (iii) the  Associate is offered a job transfer to another  location not
within the same MSA as his/her only job option.

         a.       If the Company  terminates the Associate's  employment without
                  cause,  the Associate's  severance  benefits and payments will
                  include and be limited to:

                  1)     12 (twelve)  months of base salary  after  termination,
                         disbursed  according to the Company's  regular paycheck
                         schedule.

                  2)     Continued  participation,  as if still employed, in the
                         Company's life insurance,  medical/dental,  and pension
                         benefit plans for the period of the payment in 9.a.1.

                  During the period of the payment in 9.a.1.  above,  it will be
                  the Associate's responsibility to seek alternative employment.
                  Any payments the  Associate  receives for the  performance  of
                  services during this period will be an offset to the Company's
                  obligation  to pay up to one-half of the amount  specified  in
                  9.a.1.  The Associate shall notify the Company  immediately if
                  he/she secures employment.

         b.       If the Associate terminates his/her employment,  the Associate
                  will not be entitled to any compensation under this agreement,
                  beyond the date of termination.

         10.      Death  or  Disability.   If  the  Associate  dies  or  becomes
permanently disabled,  his/her employment will terminate as of the date of death
or the date of  disability  (which will be  determined  in  accordance  with the
provisions of the Company disability plan).

         11.      Term. The term of this agreement is for one year from the date
of its acceptance by the Associate.  It will  automatically  be renewed annually
unless both parties agree, in writing, to terminate it at least 30 days prior to
its renewal date.

         12.      Notices.  If the Company  needs to give you any notices  about
your  employment,  it will send them to the  address  shown on your most  recent
paycheck.  You should send any similar  notices to the Company at: 2040  Thalbro
Street, Richmond, VA 23230, Attention: Senior Vice President, Human Resources.

         13.      Change  in  Terms.  This  agreement   supercedes  any  earlier
agreement  between you and the Company  concerning your employment and, together
with the  Company's  policies  and  procedures  for  Associates  at your  level,
contains  all of the terms and  conditions  relating to your  employment  or its
termination.  Except as provided in paragraph 14 below and except for changes in
your position with the Company,  any changes in the terms of this agreement must
be in writing and signed by you and the Company. The fact that either you or the
Company does not require strict observance of the terms of this agreement on all
occasions  does not  mean  that the  terms  have  been  changed  or that  strict
observance cannot be required at a later time.

         14.      Separate  Provisions.  A  determination  by  a  court  that  a
provision  of  this  agreement  is  unenforceable  will  not  affect  the  other
provisions.  If the  non-competition  provisions  of this  agreement  are  found
unenforceable,  you and the Company agree that the court will have the authority
to modify those  provisions  into ones it considers  enforceable  and to enforce
them as so modified.

         15.      Arbitration.

         a.       Any  disagreement   between  the  Associate  and  the  Company
                  concerning  anything  covered by this  agreement  (other  than
                  paragraphs  3,  4, or 5) will be  settled  by  arbitration  in
                  accordance  with  the  Commercial  Arbitration  Rules  of  the
                  American  Arbitration  Association  ("AAA").  If  there  is  a
                  difference  between the AAA rules and this agreement,  we will
                  go by this  agreement.  The decision of the arbitrator will be
                  final and binding on the  Associate and the Company and may be
                  enforced in a court.  The costs of arbitration  will be shared
                  equally by the  Associate  and the Company.  Both parties will
                  pay their own attorney, if any, and other expenses.

         b.       If the Associate wants to have a disagreement arbitrated,  the
                  Associate  must give a written notice saying so to the Company
                  within  six  months  after  the  Associate  knows  or,  if the
                  Associate  had exerted  reasonable  efforts,  would have known
                  that the disagreement  existed. If the Company wants to have a
                  disagreement  arbitrated,  it will give the Associate the same
                  amount of notice.

         c.       Disagreements  submitted to arbitration will be decided by one
                  arbitrator  appointed by the AAA. The Company will let the AAA
                  know that an arbitrator is needed  promptly  after it gives or
                  receives a notice of arbitration.

         16.      Virginia  Law.  Any  questions   that  arise   concerning  the
interpretation  or enforcement  of the terms of this agreement  shall be decided
based on the law of the Commonwealth of Virginia.

                  To confirm that this letter states our agreement,  please sign
the enclosed  copy on the line above your name,  date it, and return the copy to
me in the enclosed envelope. Please keep this letter for your records.


                                                        Sincerely yours,

                                                        /s/William E. Zierden
                                                        William E. Zierden
                                                        Senior Vice President,
                                                          Human Resources

         AGREED:


         /s:/John W. Froman
         ---------------------
         Mr. John W. Froman
         ###-##-####


         7/13/90
         ---------------------
         Date of Acceptance

         Attachment





                                  ATTACHMENT 1


     The term  "change  of  control"  means  the  occurrence  of  either  of the
following events: (i) a third person,  including a "group" as defined in Section
13(d) (3) of the Securities  Exchange Act of 1934,  becomes or obtains the right
to become,  the beneficial owner of Company securities having 20% or more of the
combined  voting power of the then  outstanding  securities of Circuit City that
may be cast for the  election  of  directors  of Circuit  City  (other than as a
result of an issuance of  securities  initiated  by Circuit City in the ordinary
course of business);  or (ii) as the result of, or in connection  with, any cash
tender or exchange offer, merger or other business combination, sales of assets,
or contested  election,  or any combination of the foregoing  transactions,  the
persons who were directors of Circuit City before such transactions  shall cease
to  constitute  a majority  of the Board of  Directors  of  Circuit  City or any
successor to Circuit City.