Document:

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.EMPLOYMENT AGREEMENT

         This  agreement  is made as of April 24, 1995,  by and between  Circuit
City Stores,  Inc.,  (the  "Company"),  a Virginia  Corporation,  and William A.
Ligon, (the "Employee").

         The parties agree as follows:

                                    ARTICLE I

                                    Services

         The Company  agrees to employ the  Employee  as Senior  Vice  President
during the term of this  Agreement.  The Employee agrees to devote his full time
and attention to the business of the Company and to the faithful  performance of
his duties as Senior Vice President and to the  performance  of such  additional
duties as may be  assigned  to him from time to time by the  Company's  Board of
Directors (the "Board") or Chief Executive Officer.

         At any time and from time to time while this agreement is in force, the
Employee may be appointed to such other  executive  positions  and be given such
other titles and executive responsibilities as the Board may determine.

                                   ARTICLE II

                                      Term

         The Company  agrees to employ the Employee  and the Employee  agrees to
serve the  Company  for a term  beginning  as of April 24,  1995 and  continuing
through  April  23,  1997.  The term of this  Agreement  shall be  automatically
extended for additional  one-year periods unless either party notifies the other
in writing at least one year  before  the end of the  then-current  term that it
does not wish to extend the term.  For  example,  if such notice is not given by
April 24, 1996, the term of this Agreement  shall extend through April 23, 1998.
However,  in order for the contract to expire on that date, notice must be given
by April 24, 1997.  If no such notice is given,  the term shall  extend  through
April 23, 1999.  This  Agreement  may be terminated  prior to its  expiration by
either the Company or the Employee.  The  consequences of such a termination are
described in other provisions of this Agreement.

                                   ARTICLE III

                                  Compensation

         The Employee's compensation shall include:

               (1) Base salary,  as determined by the Board or the  Compensation
         and  Personnel  Committee of the Board (the  "Committee")  following an
         annual review of the Employee's compensation.  Until June 1, 1995, such
         base salary will be $275,000.00/annually.

               (2) Cash bonuses in accordance  with the  Company's  annual bonus
         program  established  by the Board or the  Committee  and on a basis no
         less  favorable  than  that  applicable  to  other  senior   management
         employees and such other cash bonuses as the Board or the Committee, in
         their discretion, may determine from time to time.

               (3)  Participation  in the Company's stock incentive  programs to
         the extent the Board or the Committee,  in their discretion  determines
         is appropriate for senior management employees.

               (4)  Participation  in the  Company's  pension and other  benefit
         plans  and  all  of  the   Company's   fringe   benefit  and  executive
         compensation  programs for senior  management  employees  not otherwise
         provided  for in this  Agreement  in  accordance  with  the  terms  and
         provisions of those plans and  programs,  as they may be in effect from
         time to time.

         In  addition,   the  Company  shall  reimburse  the  Employee  for  all
reasonable and necessary  expenses  incurred by the Employee in connection  with
the performance of his duties  hereunder in accordance  with corporate  policies
and procedures covering travel and business expense  reimbursement,  as they may
be in effect from time to time.

         The  Employee may elect to defer all or any part of his salary or bonus
by filing a written  election (the "Election") to that effect with the Secretary
of the Company.  As to salary, the Election shall be effective only with respect
to compensation for services performed after the Employee files the Election. As
to  bonuses,  the  Election  shall be  effective  only with  respect  to bonuses
determined  and awarded to the Employee  after the Employee  files the Election.
Any amounts deferred by the Employee will be credited to an account  established
for him on the books of the  Company.  This  account will also be credited as of
the end of each  fiscal  year,  until  such time as no  balance  remains  in the
account,  with an  additional  amount  equal to the  product of (a) the  average
balance  credited  to the account  during that fiscal year and (b) a  percentage
which shall be the time weighted  average of the prime rate  announced by Signet
Bank from time to time during such fiscal  year.  The total  amount  credited to
this  account  will become  payable to the  Employee  after his  termination  of
employment  upon such  payment  schedule as he may specify in the  Election.  If
termination  of  employment  occurs by reason of death,  or if the Employee dies
after  payments have  commenced,  any remaining  payments will be made to one or
more  beneficiaries  designated  by the  Employee  in a writing  filed  with the
Secretary of the Company.  If the Employee fails to designate a beneficiary,  or
if all the designated  beneficiaries  predecease  him,  payment of the remaining
unpaid balance in the account will be made to the Employee's estate. The Company
reserves  the right to  accelerate  payments  or to make  payment of the amounts
remaining unpaid in a lump sum. All determinations made and actions taken by the
Company  under this  Article  shall be binding  upon the  beneficiaries  and the
Employee's estate. The Employee's rights, or the rights of any beneficiary,  are
those of a general creditor of the Company.

                                   ARTICLE IV

                            Confidential information

         The Employee  recognizes that by virtue of his present position and his
tenure with the Company in an executive  capacity,  he has and will  continue to
have access to Company  trade  secrets  and other  confidential  information  in
whatever  form as documents,  software,  C.D. Rom,  firmware,  brochures,  data,
materials,  knowledge,  graphs, pictures and the like including, but not limited
to, the Company's  business  methods,  expansion  strategies,  expansion  plans,
merchandising  and  marketing  techniques  or  policies,   training  techniques,
internal  operations,  supplier  information,   pricing  information,   internal
corporate planning methods,  systems and operating procedures and other business
matters (the "Confidential Information").

         The  Employee   recognizes  and  acknowledges  that  such  Confidential
Information,  as may exist from time to time, is a valuable,  special and unique
asset of the Company,  and that this  Confidential  Information and its use have
been  responsible for the rapid growth and nationwide  expansion of the Company,
and if known by an entity engaged in the "Business of the Company,"  would cause
irreparable harm to the Company. The "Business of the Company", shall be defined
as: (a) retail sales and service of consumer electronics or appliances ( with or
without after-sale  service) or (b) the purchase or sale of motor vehicles (with
or without  providing  after-sale  service)  or c) any other line of business in
which the Company  becomes  engaged  before the date the  Employee's  employment
terminates.

         Therefore,  except  in  performing  his  duties as an  employee  of the
Company, the Employee shall not:

               (1)  Make  or  cause  to  be  made  any   reproductions   of  any
Confidential Information belonging to or in the possession of the Company; or

               (2) Remove any Confidential  Information from the premises of the
Company or fail or refuse to surrender the same to the Company  immediately upon
the  termination  of his  employment  or at any prior  time  upon the  Company's
request; or

               (3) Use for his own benefit or purposes or disclose to or use for
the  benefit or  purposes  of anyone  other than the  Company,  both  during his
employment  and after the  termination of his  employment,  any trade secrets or
other  Confidential  Information,  whether he learned the information  before or
after signing this Agreement.

                                    ARTICLE V

                      Non-competition and Non-solicitation

         (1)  Non-competition.  Except as  hereinafter  provided,  the  Employee
agrees  that he will not,  without  the prior  written  consent of the  Company,
engage in competition  with the Company by being  associated  with any Competing
Business (as  hereinafter  defined)  during the term of this Agreement and for a
period of one year following its termination or expiration. For purposes of this
Article,  the  Employee  will be  deemed  to have  associated  with a  Competing
Business  if  he:  (1)  directly  or  indirectly,  alone  or  as a  member  of a
partnership,  owns  greater  that a 5% interest  in; or (2)  manages,  operates,
controls, or acts as a consultant to; or (3) serves as an officer or director or
in any managerial or executive position; with any Competing Business.

         A  "Competing  Business" is any  business  entity which  engages in the
Business of the Company and engages in Substantial  Competition with the Company
in one or more Metropolitan  Statistical Areas ("MSA"), in which the Company has
its operation,  or in which, at the date the Employee's  employment  terminates,
the Company is engaged in real estate site  selection or has taken further steps
toward  the  commencement  of  operation  in  the  future,  either  alone  or in
association with another entity ("Future  Statistical  Areas"), and in which the
Company collectively  produced,  or, in the case of Future Statistical Areas, is
projected  to produce in the first year of  operations,  more than $5 million of
gross  sales.  A  business  will  not  be  considered  to  be  in   "Substantial
Competition"  with the Company if: (1) the business or the operating unit of the
business  in which the  Employee  is  employed  or with  which the  Employee  is
associated (the "Business  Unit") is not engaged in the Business of the Company;
or (2) if sales of the Business  Unit's  products or services in the Business of
the Company  constitute  less than 10% of such Business  Unit's sales; or (3) if
the sales of the Business Unit in the Business of the Company do not  constitute
more than 10% of the sales of the Business  Unit,  but there is not  significant
geographic  overlap  between  such  Business  Unit  and the  Company's  business
locations.  For the purposes of this provision,  there will not be a significant
geographic  overlap if less than 10% of the sales of such Business Unit and less
than 10% of the Company's sales (i) are in the same MSA or (ii) are projected to
be in the same MSA  within the first  year of  operations  in the case of Future
Statistical  Areas. The term "Business of the Company" is defined in Article IV.
In every case, the good faith  judgement of the Committee shall be conclusive as
to whether the Employee is associated with a Competing Business.

         (2)  Non-solicitation.  The  Employee  agrees  during  the term of this
Agreement and for a period of two years following its termination,  he will not,
without prior written consent of the Company,  directly or indirectly  engage in
efforts to induce the Company's  employees to terminate their employment for the
purpose of being employed by another business entity.

         (3) Change of Control.  In the event that the Employee's  employment is
terminated  within two years  following  a Change of Control  (Change of Control
being defined in Article VII) under  circumstances  described in Article  VI(2),
the Employee shall not be bound by the provisions of this Article.

                                   ARTICLE VI

                           Termination by the Company

         (1) For Cause.  The Company may  immediately  terminate the  Employee's
employment at any time prior to the  expiration  of this  Agreement for "cause".
For purposes of this Agreement, the following shall be "cause" for termination.

             (a)  continued  and  deliberate  neglect  by  the  Employee  of his
                  employment duties; or

             (b)  criminal  misconduct  of the Employee in  connection  with the
                  performance of any of his duties, including, by way of example
                  but not limitation,  misappropriation  of funds or property of
                  the Company or accepting  bribes or  kickbacks  in  connection
                  with any transaction entered into on behalf of the Company; or

             (c)  failure of the Employee to disclose to the Board a conflict of
                  interest,  of  which he knew or,  with  reasonable  diligence,
                  would have known, in connection  with any transaction  entered
                  into on behalf of the Company; or

             (d)  conduct by the Employee  that would result in material  injury
                  to the  reputation  of the Company if he were  retained in his
                  position with the Company; or

             (e)  the Employee's conviction of a felony; or

             (f)  a preliminary  or permanent  injunction  or similar  remedy is
                  entered  against the Employee,  the Company or both preventing
                  the  Employee or the Company  from  performing  all or part of
                  this Agreement; or

             (g)  breach by the Employee of the  provisions  of Articles IV or V
                  of this Agreement; or

             (h)  deliberate  actions by the Employee  which are contrary to the
                  best interests of the Company.

         In every  case,  the good faith  judgement  of the  Committee  shall be
conclusive  as to  whether  cause  for  termination  exists.  In the  event of a
termination  for cause,  which shall include  resignation by the Employee at the
Company's  request at a time when cause for  termination  exists,  the  Employee
shall forfeit the right to any compensation  (other than deferred  compensation)
under this Agreement  after the date of  termination,  except to the extent that
the  terms of any  plans  or  programs  referred  to in  Article  III (4) or any
applicable law require otherwise.

         (2) Without Cause. The Company may terminate the Employee's  employment
agreement at any time prior to the  expiration of this  Agreement  without cause
("cause"  being  defined in Article  VI(1)).  In the event:  (a) the  Employee's
employment is terminated by the Company without cause;  (b) the Employee resigns
at the Company's  request at a time when no case for termination  exists; or (c)
the Employee voluntarily terminates his employment as a result of a reduction in
compensation or benefits (which is not part of a prorata  reduction in executive
compensation or benefits for the Company's senior  executives) or as a result of
a significant  reduction in the Employee's  responsibilities,  and the voluntary
termination  occurs  within 60 days after such  reduction,  the  Employee  shall
forfeit the right to any compensation  (other than deferred  compensation) under
this Agreement after the date of termination except:

       (i)   12 months of base salary, payable in biweekly installments over the
             following  12 months;  and,  in the event that the  termination  of
             employment  occurs  within two years  following a Change in Control
             (Change in Control  being defined in Article VII), an additional 12
             months of base salary,  payable in biweekly  installments  over the
             second 12-month period immediately following such termination; and

      (ii)   a  pro-rated  bonus for the  fiscal  year in which  the  Employee's
             employment is  terminated,  if the  termination  occurs on or after
             September 1st of that fiscal year.  The proration  will be based on
             the number of complete  months the  Employee  worked in that fiscal
             year,  will be in accordance with the bonus program for such fiscal
             year,  and will be  payable  within two weeks of when  bonuses  are
             distributed, and

     (iii)   a prorated bonus for the prior fiscal year, if the Employee  worked
             six or more months in the prior fiscal year,  and if the Employee's
             termination  date is  between  March 1st and the date  bonuses  are
             distributed  for the prior  fiscal year (if bonuses are awarded for
             the prior fiscal year).  In this event,  the bonus will be prorated
             for the number of complete  months the Employee worked in the prior
             fiscal year, and

      (iv)   Continued  participation,  as if still  employed,  in the Company's
             medical and dental  insurance plans through the end of the month in
             which the Employee's severance payments end to the extent permitted
             by the provisions of such plans;  provided,  however, the Company's
             obligation to continue  participation  in these plans,  ends on the
             last day of the month in which the  Employee  becomes  eligible  to
             participate  in such  benefits  at his  new  place  of  employment.
             However,  the Company will continue to provide benefit continuation
             to the extent required by federal law.

         Notwithstanding  the foregoing,  the Employee shall have the obligation
to seek  alternative  employment  following a termination  of  employment  under
Article VI(2).  Any  remuneration  the Employee  receives for the performance of
personal  services  during  the year  following  termination  of his  employment
pursuant to this Article VI(2) will be an offset to the Company's obligations to
pay the amounts referred to in subparagraph (i) above;  provided,  however, that
such an offset will not reduce below  one-half the remaining  biweekly  payments
the Company is  obligated to pay under  subparagraph  (i) above;  and  provided,
further,  that  the  Employee  shall  not  have  any  obligation  to seek  other
employment  and no such offset will be allowed the Company if such a termination
of employment  occurs within two years  following a Change in Control (Change in
Control being defined in Article VII).

         (3) Death or  Disability.  If the  Employee  dies or  becomes  disabled
during the term of this Agreement,  the Employee's  employment will terminate as
of the date of the  Employee's  death  or the  determination  of the  Employee's
disability. In such event, neither of Article VI (1) or (2) shall be applicable.
The  determination  as to whether the employee has suffered a disability and the
date on which the disability  commenced  shall be made by the Committee,  in its
sole discretion, on the basis of competent evidence; provided, however, that the
inability  of the  Employee  to  perform  each  of the  material  duties  of his
employment for 6 consecutive months because of a medically  determined  physical
or mental  condition  shall be  conclusive  evidence  of  disability  unless the
Company is provided with competent  medical evidence that the condition will not
continue to prevent the Employee  from  performing  his duties for more than six
additional  months. Two consecutive weeks of full ability to perform each of the
material  duties of the position  shall be required to interrupt  the running of
the six-month period.

         In the event of termination  because of disability,  the Employee shall
receive  his base salary  (pursuant  to Article III (1)) for the first 12 months
after the first date on which the Employee was unable to perform, after which he
shall  be  entitled  only  to such  amounts,  if any,  as may be  available  any
employment-related  benefit  plans or  programs in which the  Employee  may be a
participant  (except those which are totally paid for by the Employee  through a
private company). Any amounts the Employee receives under such plans or programs
during the 12 months  referred to above  shall be an offset to amounts  which he
would otherwise receive under Article VI (3).

         In the event of the Employee's death, the designated beneficiary of the
Employee shall continue to receive the Employee's  base salary for a period of 3
months following his death.

                                   ARTICLE VII

                             Termination by Employee

         (1) General Rule. The Employee may voluntarily terminate his employment
prior to the  expiration of this  Agreement  upon 60 days written  notice to the
Company.  If the  Employee  does so for  reasons  other  than those set forth in
provision (c) of Article VI (2) or for such  reasons,  but after the time period
set forth in such  provision  has  expired,  he shall  forfeit  the right to any
compensation  (other than deferred  compensation) under this Agreement after the
date of termination.

         (2) Voluntary  Termination Following a Change of Control. The provision
of Article  VII (1)  notwithstanding,  in the event that a Change of Control (as
hereinafter  defined)  occurs  and  within  one  year  thereafter  the  Employee
voluntarily  terminates his employment  (other than pursuant to provision (c) of
Article VI (2)), the Employee  shall be entitled to receive,  in addition to any
other amounts he may be entitled to receive under this  Agreement and subject to
any applicable  payroll or other taxes required to be withheld,  an amount equal
to one year's base salary,  in addition to the  continuation  of his medical and
dental benefits (as if still employed) during the pay-out period. This severance
amount shall be payable in biweekly  installments over the 12 months immediately
following termination.

In such event, fiscal year-end bonuses will be handled in the following manner:

         (i)     If the  Employee's  termination  date is on or after  September
                 1st:  any bonus  awarded for that year will be prorated for the
                 number of  complete  months the  Employee  worked in the fiscal
                 year.

         (ii)    If the termination occurs prior to September 1st, no bonus will
                 be due.

         (iii)   If the Employee's  termination  date is between March 1 and May
                 15:  the  Employee  shall also be  entitled  to a bonus for the
                 prior fiscal year,  prorated for the number of complete  months
                 the  Employee  worked in the prior  fiscal  year,  provided the
                 number of months  employed in that year was equal to or greater
                 than six.

         (3)     Change of Control  Definition.  In this  Agreement,  "Change of
                 Control" shall mean:

         (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 the Company that may be cast
                 for the election of  directors of the Company  (other than as a
                 result of an issuance of securities initiated by the Company in
                 the ordinary course of business); or

         (ii)    as a result  of,  or in  connection  with,  any cash  tender or
                 exchange offer, merger or other business  combination,  sale of
                 assets  or  contested  election,  or  any  combination  of  the
                 foregoing  transactions,  the persons who were directors of the
                 Company  before such  transactions  shall cease to constitute a
                 majority  of the  Board  of  Directors  of the  Company  or any
                 successor to the Company.

                                  ARTICLE VIII

                            Benefits Upon Termination

         Upon  termination of  employment,  benefits are terminated as described
below:

         (1) Medical  and Dental  Plans:  The  Employee's  participation  in the
Medical and/or Dental plans  terminates as of the last day of the month in which
the Employee's employment ends, unless specifically continued during a severance
payment period as noted in Article VI or Article VII(2) above.  Continuation  of
coverage other than as provided in Article VI or Article  VII(2) above,  will be
available in accordance with federal law and each plan's provisions.

         (2) Retirement Plan: The Employee's  termination of employment will not
affect Retirement Plan benefits earned as of the date of termination.

         (3) Other Benefit Programs: Participation in all other benefit programs
ends as of the date of  termination,  except as noted  below.  Benefit  programs
include,  but are not limited to, Group Life  Insurance,  Long Term  Disability,
Employee Discount Program,  car allowance or company car program, the Restricted
Stock and Stock Option Plans, the Officer Merchandise  Evaluation  Program,  and
the tax preparation and financial counseling  programs.  The ability to exercise
options ends on the date of  termination  of  employment.  Participation  in the
fiscal  year-end  bonus  program ends as of the date of  termination  unless the
termination of employment is without cause as defined in Article VI (2) above.

         If the Employee is  released,  without  cause,  under the terms of this
agreement,  and the Employee has vested but  unexercised  stock options,  or has
stock options or restricted  stock which are due to vest within one month of the
date of termination, the Employee shall have the option to delay the termination
for up to one month, to allow for any restricted stock or stock options to vest,
or for the Employee to have time to exercise  options.  If the  Employee  elects
this option,  the severance  pay-out period would be reduced by a like period of
time (e.g.,  if the Employee  delays his  termination for one month in order for
stock to vest,  the Employee  would receive 11 months of severance  payments and
medical and dental plan contribution,  instead of 12 months).  If termination is
for  "cause,"  participation  in  all  benefits,  including  stock  options  and
restricted  stock ends either on the date of termination or the end of the month
in which the termination  occurred,  according to the provisions of each benefit
program.  If  termination  of employment is due to death,  the right to exercise
vested but  unexercised  stock  options is in  accordance  with the terms of the
stock option  plans.  All of the above is subject to the laws,  regulations  and
plan provisions in effect at the time of the Employee's termination.

                                   ARTICLE IX

                                   Monies Owed

         To the extent that the Employee owes the Company any monies at the time
of termination of employment, or to the extent that taxes are due on any Circuit
City benefits, the Employee authorizes the Company to withhold such amounts from
his final paycheck or severance payment(s),  or from reimbursements or any other
monies due to the Employee.

                                    ARTICLE X

                                     Notices

         Any  notice  or other  communication  ("Notice")  required  under  this
Agreement  shall be in  writing  and shall be deemed to have been  given or made
when  personally  delivered,  or when mailed by  registered  or certified  mail,
postage prepaid,  return receipt  requested,  to the other party. In the case of
the Company,  any Notice shall be delivered or mailed to its principal office to
the attention of the Secretary. In the case of the Employee, any Notice shall be
delivered or mailed to his last known address as reflected in the records of the
Company.

                                   ARTICLE XI

                                   Assignment

         This agreement is one for personal  service and shall not be assignable
by  Employee.  However,  Company may assign this  agreement  to an entity  under
common control with Company or to an entity which succeeds to the portion of the
Company's business in which the Employee is employed.

                                   ARTICLE XII

                              Survival of Covenants

         Except to the extent  expressly  provided  otherwise in this Agreement,
the covenants and agreements of the Employee and the Company,  including but not
limited to those set forth in Articles IV and V, shall  survive the  termination
or expiration of this Agreement.

                                  ARTICLE XIII

                          Entire Agreement; Amendments

         This  Agreement  constitutes  the entire  agreement and  supercedes all
other prior  agreements and  understandings,  both written and oral,  express or
implied,  with respect to the subject matter of this  Agreement.  This Agreement
may be amended only by a writing executed by the parties.

                                   ARTICLE XIV

                                  Governing Law

         This  Agreement  shall be governed  by and  construed  and  enforced in
accordance with the laws of the Commonwealth of Virginia.

                                   ARTICLE XV

                                     Waiver

         Failure to insist upon strict  compliance with any term or condition of
this Agreement shall not constitute a waiver of the term or condition, nor shall
any waiver or  relinquishment  of any right or power under this Agreement at any
one or more times be deemed a waiver or relinquishment of such right or power at
any other time.

                                   ARTICLE XVI

                                  Severability

         If any  Article,  paragraph,  sentence,  or clause  hereof,  including,
without  limitation,  Article  IV and V  ("Provision"),  is  deemed  invalid  or
unenforceable in whole or in part in any jurisdiction,  all the other Provisions
in this  Agreement  including  the affected  Provision,  to the extent it is not
deemed invalid or unenforceable,  shall remain in full force and effect in that,
and any  other,  jurisdiction  and  shall  be  liberally  construed  in order to
effectuate  the  purpose  and  intent  of  the  Agreement.   The  invalidity  or
unenforceability  of any Provision of this agreement in any  jurisdiction  shall
not  affect  the  validity  or  enforceability  of that  Provision  in any other
jurisdiction.

                                  ARTICLE XVII

                                   Arbitration

         (1) Any disagreement or controversy between the parties concerning this
Agreement (other than disagreements or controversies  concerning Articles IV and
V of this  Agreement)  shall  be  settled  by  arbitration  in  accordance  with
Commercial Arbitration Rules of the American Arbitration Association ("AAA") and
this  Article.  In the event of any  inconsistency  between  such Rules and this
Agreement,  this Agreement  shall  control.  The decision in writing of the sole
arbitrator or of a majority of the arbitrators,  as the case may be,  designated
or selected in  accordance  with this Article shall be final and binding on both
parties and may be enforced in a court of law or equity.  The parties  recognize
that  they wish to use  arbitration  to settle  disagreements  or  controversies
concerning this Agreement other than those excluded above and both parties waive
their  right to appeal  the  arbitrators'  decision  to any  court.  The cost of
arbitration,   including   arbitrators'   fees  and  expenses  of  hearings  and
conferences,  shall be shared  equally by the parties.  Each party shall pay its
own attorney's and experts' fees and related expenses.

         (2) Notice of intent to arbitrate must be given within six months after
the aggrieved party knows or, with reasonable diligence, would have known of the
existence  of the  disagreement  or  controversy,  unless the  parties  agree in
writing to extend such six months period.

         (3) Disagreements and controversies  submitted to arbitration hereunder
shall be decided by a sole arbitrator  appointed by the AAA; provided,  however,
that each party shall have the right,  but not the obligation,  to designate one
additional  arbitrator.  If a party wishes to avail himself of such right,  such
party shall give written notice naming such  additional  arbitrator to the other
party within 30 days after the notice of intent to arbitrate is given.

         (4) If the  Employee  breaches the  provisions  of Articles IV or V, he
shall not be entitled to receive any amounts due under this  Agreement that have
not been previously paid to him.

         (5) The Employee  recognizes and acknowledges  that in the event of any
default in or breach of any of the terms, conditions, and provisions of Articles
IV or V of this Agreement  (either  actual or  threatened) by the Employee,  the
Company will suffer irreparable harm and its remedies at law will be inadequate.
Accordingly, the Employee agrees that, in such event, the Company shall have the
right to specific  performance and injunctive  relief in addition to any and all
other remedies and rights  available to the Company under this Agreement,  or at
law or in equity, and all rights and remedies shall be cumulative.

         (6) Disagreements or controversies  concerning Articles IV or V of this
Agreement may be settled by arbitration in accordance  with this Article if both
parties so agree in writing.

         The offer  contained  herein remains open until 5 p.m. on May 10, 1995.
To confirm that this letter states our agreement,  please sign the enclosed copy
on the line above your name,  date it,  initial each page in the space  provided
for that  purpose,  and return  the copy to Wanda  Moser,  Personnel  Operations
Manager,  in the  enclosed  envelope  by May 10,  1995.  This  agreement  is not
effective until received by Wanda Moser,  who will sign it to verify receipt and
will send you a fully executed copy for your records,

         In witness whereof, the parties have executed this Agreement on the day
and the year first written below.

CIRCUIT CITY STORES, INC.

       By:        /s:/Richard L. Sharp                         4/25/95
                  --------------------------                   --------
                  Richard L. Sharp,                            Date
                  President and Chief Executive Officer

       AGREED:    /s:/William A. Ligon                         5/10/95
                  --------------------------                   ---------
                   William A. Ligon                            Date
                   SS# ###-##-####

       RECEIVED:  /s:/Wanda Moser                              5/10/95
                  ------------------                           ---------
                  Wanda Moser                                  Date

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