Document:

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                                                                   EXHIBIT 10.23

                         ROYALTY AND SERVICES AGREEMENT

       This Royalty and Services Agreement (the "AGREEMENT") is entered into as
of this 1st day of January, 2000 (the "EFFECTIVE DATE"), by and between The Good
Guys-California, Inc., a California corporation ("GOOD GUYS") and goodguys.com,
inc., a Delaware corporation ("DOTCOM").

                             PRELIMINARY STATEMENTS

       A. In consideration for the fulfillment of the various obligations and
services contemplated by this Agreement, Dotcom and Good Guys desire to enter
into an arrangement whereby Dotcom shall pay a recurring royalty to Good Guys
(the "ROYALTY") and certain other amounts and undertakings, all upon and subject
to the terms and conditions set forth herein;

       B. To enable Dotcom to obtain the benefits of purchasing discounts
available to Good Guys and to secure for Good Guys the benefit of discounts for
increased volumes of purchases Good Guys desires to supply Products (as defined
below) to Dotcom, upon and subject to the terms and conditions set forth herein;

       C. Good Guys desires to facilitate certain fulfillment functions of
Dotcom, upon and subject to the terms and conditions set forth herein;

       D. Good Guys and Dotcom desire to engage in certain co-marketing and
crosspromotion of their respective businesses, upon and subject to the terms and
conditions set forth herein; and

       E. Dotcom and Good Guys desire to share certain database information upon
and subject to the terms and conditions set forth herein.

       NOW, THEREFORE, in consideration of the mutual promises and agreements
herein contained and for other good, valuable and binding consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

                             STATEMENT OF AGREEMENT

                              I. ROYALTY OBLIGATION

       1.1. Royalty. In consideration of the various obligations and services
contemplated by this Agreement, Dotcom shall pay to Good Guys a Royalty on
Dotcom's actual net sales exclusive of bad debt allowance, chargebacks, customer
credits, returns, shipping, sales tax (and other transaction related taxes) and
other direct costs of sales ("NET SALES"). Prior to the occurrence of a
Liquidity Event, the Royalty shall be three percent (3%) of Net Sales. After a
Liquidity Event, the Royalty shall be one percent (1%) of Net Sales. The term
"LIQUIDITY EVENT" shall mean: (i) a sale of all or substantially all of the
assets or business of Dotcom, (ii) a merger of Dotcom with or into another
entity (or corporate reorganization of similar effect), or (iii) an underwritten
initial public offering of Dotcom's common stock registered under the Securities
Act of 1933.

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       1.2. Payments. Royalty payments calculated as provided above ("ROYALTY
PAYMENTS") shall be due and payable monthly within thirty (30) days after the
end of each calendar month.

                      II. SUPPLY AND FULFILLMENT OBLIGATION

       2.1. Purchase of Products.

              (a) Good Guys shall provide Dotcom with a list (the "GOOD GUYS
PRODUCT LIST") of all products offered for sale from time to time by Good Guys
through Good Guys' retail stores and/or available from Good Guys' suppliers (the
"GOOD GUYS PRODUCTS") and shall keep such list current. In addition, Good Guys
shall make available to Dotcom all copy, photos and other print and electronic
material related to Good Guys Products as Dotcom may reasonably request. Subject
to the terms and conditions hereof, Good Guys shall sell to Dotcom, and Dotcom
shall purchase from Good Guys, substantially all of Dotcom's requirements for
Good Guys Products. Upon the request of Dotcom, Good Guys agrees to use
commercially reasonable efforts to assist Dotcom in obtaining the right to sell
Product Protection Guarantee service contracts provided by Good Guys' vendors of
such services.

              (b) Dotcom may at any time elect to cease purchasing all or any
part of Good Guys Products hereunder upon thirty (30) days prior written notice
to Good Guys. Thereafter, the royalty payment shall continue at three percent
(3%) pre-Liquidity Event and one percent (1%) post-Liquidity Event. Good Guys
shall use reasonable efforts to facilitate Dotcom's purchasing, merchandising,
executive management and product development services with respect to Good Guys
Products.

              (c) The parties acknowledge that Dotcom may market and sell
products that are not Good Guys Products (the "OTHER PRODUCTS"). Subject to the
terms and conditions of this Agreement, Good Guys shall have the right, but not
the obligation, to supply Other Products to Dotcom upon the same terms and
conditions as apply to Good Guys Products. Prior to marketing or selling any
Other Products, Dotcom shall notify Good Guys in writing of the anticipated
quantities of such Other Products that it requires. Within two (2) business days
after receipt of Dotcom's notice, Good Guys shall notify Dotcom in writing if it
wishes to supply such Other Products, which notice shall confirm Good Guy's
ability to deliver such Other Products to the schedule and specifications
required by Dotcom and upon the terms set forth herein. If Good Guys does not so
elect within such two (2) business day period, then Dotcom may enter into such
contractual or other relationships to purchase such Other Products from persons
or entities other than Good Guys.

              (d) Dotcom shall not commence or continue to market or sell any
Other Product that, in the reasonable judgment of Good Guys, is of lower quality
than Good Guys Products generally or does not comply with applicable government
regulations (an "OBJECTIONABLE PRODUCT"). Good Guys shall promptly notify Dotcom
in writing of any Other Products that are or become an Objectionable Product in
Good Guys' reasonable judgment, and Dotcom shall cease to market or sell such
Objectionable Product promptly upon receipt of such notice.

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              (e) Dotcom shall distribute all Good Guys Products and Other
Products that are not Objectionable Products (collectively, the "PRODUCTS") only
through channels of distribution that constitute the Business (as defined
below). Good Guys shall not sell Products to any person or entity other than
Dotcom through channels of distribution that constitute the Business. The term
"BUSINESS" shall mean the sale and offer of sale of consumer electronics
products through one or more Internet websites operated by Dotcom, toll-free
numbers owned by Dotcom (not involving toll-free numbers owned by Good Guys),
and other electronic media and other non-bricks and mortar modalities (whether
now existing or hereafter created) operated by Dotcom. In no event shall
"Business" be deemed to include (i) the retail sale of consumer electronics
products through traditional bricks and mortar retail stores, (ii) mail-order
operations involving catalogs as the seller's primary means of marketing or
(iii) wholesale distribution and resale of entertainment electronics products.

              (f) Good Guys hereby assigns to Dotcom all vendor warranties with
respect to Products purchased by Dotcom to the full extent permitted by such
warranties. If any such vendor warranty may not be assigned by its terms, then
Good Guys shall use commercially reasonable efforts to cause Dotcom to obtain
the benefits of such warranty. In addition, Dotcom shall have the right to
return any Products acquired by Dotcom from Good Guys (or any of its affiliates)
at any time during the first forty-five (45) days after purchase thereof and
receive a credit equal to one hundred percent (100%) of the purchase price
thereof, provided that the supplier agrees to accept the return of such Product
by Good Guys. All other returns shall be subject to a ten percent (10%)
restocking charge.

              (g) Good Guys shall use commercially reasonable efforts to: (i)
facilitate all vendor relationships reasonably required to conduct the Business
and (ii) ensure that all required vendor consents are secured.

              (h) Dotcom agrees to abide in all respects with the terms and
conditions of Good Guys' various vendor agreements, and to the extent required
or requested by such vendors, to enter into such other and further agreements as
those vendors may reasonably require.

       2.2. Fulfillment Facilitation Services.

              (a) Dotcom shall be solely and exclusively responsible for all
Product fulfillment related to its customer orders.

              (b) Upon placement of a Product order by Dotcom, Good Guys shall
fill that order in accordance with the following guidelines:

                     (i) To the extent such Product is in stock at an
immediately adjacent or adjoining facility, then the order shall be filled as
soon as possible, and in any event, on a "same-day" basis.

                     (ii) To the extent such Product is in stock at a Good Guys
location other than an adjacent facility, then the order shall be filled as soon
as practicable, applying commercially reasonable standards to that
determination.

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                     (iii) To the extent the Product is not in stock, then the
order shall be filled as soon as the Product can be sourced from a third party
and delivered to Dotcom.

                     (iv) Good Guys acknowledges that for all purposes of this
Section 2, time is of the essence.

              (c) Upon delivery of the Product to Dotcom by Good Guys, Dotcom
shall thereupon take immediate title to such Product and shall assume all risk
of loss associated therewith. Dotcom shall cooperate with Good Guys in
connection with the completion and filing of any resale exemption or other
certificates.

              (d) Without the consent of Good Guys, which consent shall not be
unreasonably withheld or delayed, Dotcom shall not enter into any contractual
relationship with any person or entity other than Good Guys for the supply of
any then in stock Good Guys Products or Other Products that Good Guys has
elected to supply. Notwithstanding the foregoing, if at any time Dotcom
determines in its reasonable discretion that the quality of supply and
fulfillment facilitation services then provided by Good Guys hereunder fails to
meet the standards that it requires in order to remain competitive in its
business, Dotcom shall have the right to terminate this Agreement and to source
Products and fulfillment facilitation from any other party. In such event, the
Royalty Payment obligation shall continue but shall be reduced to (or, if
post-Liquidity Event, maintained at) one percent (1%).

              (e) Notwithstanding the foregoing, Good Guys shall continue to
provide the Good Guys Product List and updates.

       2.3. No Customer Returns or Warranty Service.

                     (a) Good Guys shall have no obligation to accept exchanges,
customer satisfaction returns, or warranty or guarantee returns of Products sold
by Dotcom.

                     (b) Good Guys shall have no obligation to provide repair
and warranty services to purchasers of Products from Dotcom. Good Guys shall
have no obligation to provide services to purchasers of Product Protection
Guarantee contracts sold by Dotcom, including but not limited to exchanges of
Products where authorized under such contracts.

       2.4. Pricing and Compensation.

              (a) Product Cost. For all Products purchased by Dotcom under this
Agreement, Good Guys shall charge Dotcom and Dotcom shall pay the Actual Net
Cost (as defined below) to Good Guys for such Products plus Incremental Cost (as
defined below). The term "ACTUAL NET COST" shall mean the actual cost paid by
Good Guys to the suppliers of such Products net of any and all allowances,
rebates, credits, discounts or similar arrangements (other than early or prompt
payment discounts) that have the effect of reducing the stated cost of such
Products (collectively, "DISCOUNTS"). The term "INCREMENTAL COST" shall mean the
direct cost, if any, reasonably incurred by Good Guys to third parties, in
excess of the cost that would have been incurred in the absence of the
performance by Good Guys of its product supply and fulfillment facilitation
obligations hereunder. The parties acknowledge that in order to facilitate Good
Guys' cash management program, Dotcom will be invoiced and will pay an amount
equal

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to Good Guys' actual cost (not reflecting any adjustment for trailing
Discounts). Within thirty (30) days after the end of each fiscal quarter, Good
Guys shall calculate total Discounts allocable to Dotcom during the prior
quarter and shall immediately issue to Dotcom a credit equal to such amount.

              (b) Payment. Payment for Products supplied by Good Guys shall be
made within five (5) business days of delivery of such Products to Dotcom.

              (c) Books and Records. Good Guys shall maintain accurate books and
records which reflect Actual Net Costs and all other relevant costs including
Incremental Cost. At its own expense, Dotcom or its representatives may examine
and copy such books and records. Dotcom and its representatives may make
examinations only during usual business hours and at the place at which Good
Guys usually keeps its books and records. Dotcom shall be required to notify
Good Guys at least ten (10) days before the date of planned examination. If an
examination has not been completed within two months after commencement, Good
Guys may require Dotcom to terminate the examination on seven (7) days notice to
Dotcom, so long as Good Guys has cooperated in full with Dotcom in the
examination of such books and records.

                          III. CO-MARKETING OBLIGATION

       3.1. Retail Store References. Good Guys shall provide the following
promotional references to an Internet website URL designated by Dotcom (the
"WEBSITE URL") in each retail store that it owns or operates during the Term:

              (a) all shopping bags, business cards, printed cash register
receipts, in-store signage and other in-store items bearing Good Guys signage
shall contain a reference to the Website URL; and

              (b) subject to any landlord restrictions, the display windows of
each Good Guys retail store shall include a reference to the Website URL which
is not less than 2 1/2 inches in height. Good Guys agrees to use commercially
reasonable efforts to promptly secure any required landlord consents.

       3.2. Other Promotional References. Good Guys shall provide the following
additional promotional references to the Website URL during the Term:

              (a) all packaging and shipping materials, packing slips and
invoices, and transmittal advices used by Good Guys shall contain a reference to
the Website URL;

              (b) each vehicle owned by Good Guys that is marked with the Good
Guys logo or tradename shall include a reference to the Website URL;

              (c) each print advertisement and print promotional piece produced
by Good Guys or purchased by Good Guys from third parties shall contain a
reference to the Website URL;

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              (d) all radio and television advertisements of Good Guys shall
contain a reference to the Website URL; and

              (e) Dotcom may include additional references in Good Guys' radio
and television advertisements (beyond those required by Section 3.2(d) above),
provided that Dotcom pays its proportional share of the direct costs thereof.

       3.3. Website References. During the Term, Dotcom's Website (i) shall
contain functionality to enable customers to request the Good Guys toll-free
telephone number from one or more of its pages, including the Dotcom home page,
and (ii) shall contain on one or more of its pages a store locator for Good
Guys' retail locations, which locator shall be directly accessible from the
Dotcom home page. Dotcom shall update such store locator from time to time at
the request of Good Guys. In addition, Dotcom's Website will display a link to
the Good Guys corporate website.

       3.4. Negative Covenants. During the Term, Good Guys will not publish any
advertisement in any media or in any retail store that promotes any other online
seller offering any consumer electronics.

                             IV. DATABASE OBLIGATION

       4.1. Grant of License.

              (a) Subject to any restrictions contained in any agreements with
third parties and to the terms and conditions hereof, Dotcom and Good Guys
hereby grant to, each other a non-exclusive, royalty-free right and license (the
"LICENSE") to use the following database and informational materials, including
without limitation any additions, revisions and modifications made thereto by
the owner of such materials during the Term (collectively, the "LICENSED
MATERIALS"):

                     (i) Good Guys' product information regarding each Product
that Good Guys is then supplying to Dotcom, as such information may exist from
time to time; and

                     (ii) each party's lists regarding its customers, including
their transactional histories and demographic information (collectively, the
"CUSTOMER LISTS"), as such information may exist from time to time.

              (b) The Licensed Materials shall be made available at such times
and in such format as the parties shall mutually agree. Each party shall use
commercially reasonable efforts to keep the Licensed Materials current and
accurate in all material respects.

              (c) Neither party shall disclose, sell, lease or rent the Licensed
Materials to any third party without the other party's prior written consent.

              (d) To the extent that Dotcom acquires any information regarding
Retail Customers (as defined below) through its own sales, such information
shall be provided to Good

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Guys periodically, but in no event less frequently than quarterly. To the extent
that Good Guys acquires any information regarding Internet Customers (as defined
below) through its own sales, such information shall be provided to Dotcom
periodically, but in no event less frequently than quarterly. Except as
expressly provided in this Agreement to the contrary, either party may use the
information provided to it hereunder for any purpose, in its sole discretion.
The term "INTERNET CUSTOMER" shall mean any customer who purchased from Dotcom
during the 12-month period ending immediately prior to the date of
determination. The term "RETAIL CUSTOMER" shall mean any customer who purchased
from Good Guys during the 12-month period ending immediately prior to the date
of determination. The parties expressly acknowledge that a person may be both an
Internet Customer and a Retail Customer.

       4.2. Limited Warranty. Each party hereby represents and warrants to the
other that (a) it owns or otherwise has the right to use the Licensed Materials
as to which it grants the License, (b) it has the right and power to grant the
License as provided herein and (c) the grant of the License as provided herein
does not require the consent of any third party.

       EXCEPT AS EXPRESSLY PROVIDED IN THE FOREGOING SENTENCE, NEITHER PARTY
MAKES ANY REPRESENTATION OR WARRANTY WHATSOEVER, WHETHER EXPRESS OR IMPLIED,
WITH RESPECT TO ANY OF THE LICENSED MATERIALS OR ANY INFORMATION, REPORTS OR
OUTPUT GENERATED THEREBY. EACH PARTY HEREBY DISCLAIMS ANY IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL EITHER
PARTY BE LIABLE TO THE OTHER HEREUNDER FOR ANY CONSEQUENTIAL, PUNITIVE OR
INCIDENTAL DAMAGES.

       4.3. Ownership of Licensed Materials. All Licensed Materials, including
any copies, translations or compilations of all or any part thereof, and any
revisions, modifications or additions thereto made by Good Guys or Dotcom, as
the case may be, are and shall remain the sole exclusive property of their
respective owner, except for any revisions, modifications or additions thereto
which were made solely by the party granted a License to use such Licensed
Materials hereunder. Any such revisions, modifications or additions shall be
owned by the party that made them, but the owner of the Licensed Materials shall
hereby be granted a non-exclusive, perpetual, non-revocable, non-transferable
license to use the same.

       4.4. Confidentiality. Each party acknowledges that the Licensed Materials
constitute valuable, confidential and proprietary information and trade secrets
of the other. Accordingly, neither party shall, directly or indirectly, during
or after the term of this Agreement, disclose or divulge to any third party, or
permit any third party to use or have access to, any of the Licensed Materials,
without the prior written consent of the other.

       4.5. Effect of Termination. Upon termination of this Agreement: (i) the
License granted hereunder shall terminate; (ii) each party shall cease to use
the Licensed Materials; (iii) each party shall promptly return to the other or
destroy all copies of the Licensed Materials; and (iv) each party shall execute
and deliver to the other any documents reasonably requested by the other to
confirm the other's ownership of the Licensed Materials.

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                             V. TERM AND TERMINATION

       5.1. The term of this Agreement (the "TERM") shall commence on the date
hereof and continue in full force and effect until the thirtieth (30th)
anniversary of the Effective Date or until otherwise terminated in accordance
with this Agreement.

       5.2. Either party shall have the right, but not the obligation, to
terminate this Agreement immediately if at any time:

              (a) the other party shall be in material breach of any of its
obligations hereunder or under any other material agreement between the parties,
and such breach shall not be cured within thirty (30) days after receipt of
written notice thereof;

              (b) the other party shall be the subject of a voluntary petition
in bankruptcy or any voluntary proceeding relating to insolvency, receivership,
liquidation or assignment for the benefit of creditors;

              (c) the other party shall become the subject of any involuntary
petition in bankruptcy or any involuntary proceeding relating to insolvency,
receivership, liquidation or assignment for the benefit of creditors, and such
petition or proceeding shall not be dismissed within 60 days of filing;

              (d) the business of the other party shall be liquidated or
otherwise terminated on any basis; or

              (e) Dotcom or its successor ceases to be actively and continuously
engaged in activities constituting the Business.

       5.3. Dotcom shall have the right to terminate this Agreement as
contemplated by Section 2.2(d).

       5.4. A party may exercise its right to terminate pursuant to this
Agreement by written notice to the other party. No exercise by a party of its
rights hereunder shall limit its remedies by reason of the other party's
default, the party's rights to exercise any other rights under this section or
any other rights of that party.

       5.5. This Agreement will automatically and without necessity of notice
terminate upon the effective date of termination of that certain Trademark
License Agreement between the parties of even date herewith.

                                VI. MISCELLANEOUS

       6.1. Assignment. Neither party may assign this Agreement or its rights
and obligations hereunder in whole or in part without the other party's prior
written consent which consent may not be unreasonably withheld or delayed. Any
attempt to assign this Agreement without such consent shall be void and of no
effect. Notwithstanding the foregoing, either party

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may assign this Agreement or its rights and obligations hereunder to any entity
controlled by it or to any entity by which it is acquired by merger, purchase of
capital stock, transfer of substantially all assets or otherwise; provided that
such entity shall thereafter succeed to all obligations of such party under this
Agreement; and provided further, that no such assignment will be effective
unless the assignee succeeds to the assigning party's interest in the Trademark
License Agreement and Assignment of Domain Name Agreement, of even date
herewith.

       6.2. Amendment. No modification or amendment hereof shall be valid and
binding, unless it be in writing and signed by the parties hereto.

       6.3. Relationship of the Parties. The parties intend to create a
relationship of independent contractors, and not of partnership, co-venture,
joint venture, or agency. Neither party shall have the power to bind the other
or to incur obligations on behalf of the other without the other's prior written
consent. Under no circumstances is either party intended to be, nor shall it be
deemed to be, an agent of the other.

       6.4. Governing Law. This Agreement shall be governed by the internal laws
of the State of Delaware without giving effect to the conflict of law principles
thereof.

       6.5. Entire Agreement. This Agreement sets forth the entire agreement
between the parties hereto with respect to the subject matter hereof and is
intended to supersede all prior negotiations, understandings and agreements.

       6.6. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and together which shall
constitute one and the same instrument.

       6.7. Waiver. The failure of any party to exercise any right or remedy
provided for herein shall not be deemed a waiver of any right or remedy
hereunder.

       6.8. Severability. If any provision of this Agreement is determined by a
court of competent jurisdiction to be invalid or otherwise unenforceable, such
determination shall not affect the validity or enforceability of any remaining
provisions of this Agreement. If any provision of this Agreement is invalid
under any applicable statute or rule of law, it shall be enforced to the maximum
extent possible so as to effect the intent of the parties, and the remainder of
this Agreement shall continue in full force and effect.

       6.9. Survival. The provisions of Section 4.4 and this Section 6 shall
survive any termination of this Agreement.

       6.10. Headings. The section headings used herein are for the convenience
of the parties only, are not substantive and shall not be used to interpret or
construe any of the provisions contained herein.

       6.11. Successors and Assigns. This Agreement and the undertakings and
representations herein contained shall inure to the benefit of and bind the
parties and their respective successors and assigns.

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       6.12. Notice. Any and all notices or other communications hereunder shall
be sufficiently given if in writing and sent by hand, telecopier, reputable
overnight courier or by certified mail, return receipt requested, postage
prepaid, addressed to the party to receive the same at its address as set forth
below, or to such other address as the party to receive the same shall have
specified by written notice given in the manner provided for herein. Such
notices or other communications shall be deemed to have been given on the date
of such delivery. Any party may change its address for the purpose of this
Agreement by notice to the other parties given as aforesaid.

          Notice to Good Guys:                     Notice to Dotcom:

          The Good Guys-California, Inc.           goodguys.com, inc.
          7000 Marina Blvd.                        9009 S.W. Hall Blvd.
          Brisbane, CA 94005                       Second Floor
          Attn: Chief Executive Officer            Tigard, OR 97223
                                                   Attn: Chief Executive Officer

                            [SIGNATURE PAGE FOLLOWS]

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       IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first set forth above.

THE GOOD GUYS-CALIFORNIA, INC.               GOODGUYS.COM, INC.

By:    /s/ RONALD UNKEFER                    By:     /s/ STUART N. JOHNSON
       -------------------------                     ---------------------------

Name:  RONALD UNKEFER                        Name:   STUART N. JOHNSON
       -------------------------                     ---------------------------

Title:                                       Title:
       -------------------------                     ---------------------------

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                           TRADEMARK LICENSE AGREEMENT

       This Trademark License Agreement (the "AGREEMENT") is entered into as of
this 1st day of January, 2000 (the "EFFECTIVE DATE"), by and between The Good
Guys-California, Inc., a California corporation ("LICENSOR"), and goodguys.com,
inc., a Delaware corporation ("LICENSEE").

                             PRELIMINARY STATEMENTS

       A. Licensor is the owner of the Marks listed in Schedule A (collectively,
the "EXISTING MARKS"), including any federal or state registrations or
applications pertaining thereto.

       B. Licensee wishes to establish an internet-based retail business branded
with new marks formed by combining the Existing Marks with a high level Internet
domain names (for instance, without limitation, "goodguys.com," "goodguys.net,"
and "goodguys.org") (collectively, the "NEW MARKS") and in connection therewith
wishes to obtain a license to use the Existing Marks as a component of the New
Marks.

       C. In furtherance of their respective strategic goals, Licensor and
Licensee have determined that it is in their mutual best interests to enter into
a contractual arrangement whereby Licensor grants to Licensee a license to use
the Existing Marks as described below.

       NOW, THEREFORE, in consideration of the mutual promises and agreements
herein contained and for other good, valuable and binding consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

                             STATEMENT OF AGREEMENT

       1. Grant of License.

              a. Licensor hereby grants to Licensee during the Term hereof a
nontransferable, worldwide right and license (the "LICENSE") to use, display,
and reproduce the Existing Marks as part of the New Marks, solely for use in
connection with Licensee's activities constituting the Business (as defined
below). Licensee is not licensed to use the Existing Marks in connection with
any business or activities other than the Business. Except as expressly
permitted by this Agreement or as otherwise agreed in writing between the
parties, Licensee is not licensed to use the Existing Marks standing alone and
not as part of the New Marks. The term "Business" shall mean the sale and offer
of sale of consumer electronics products through one or more Internet websites
operated by Licensee, toll-free numbers owned by Licensee (not involving
toll-free numbers owned by Licensor), and other electronic media and other
non-bricks and mortar modalities (whether now existing or hereafter created)
operated by Licensee. In no event shall "BUSINESS" be deemed to include (i) the
retail sale of consumer electronics products through traditional bricks and
mortar retail stores, (ii) mail-order operations involving catalogs as the
seller's primary means of marketing and (iii) wholesale distribution and resale
of entertainment electronics products.

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              b. Licensee shall have the right to use the Existing Marks in
combination with any top-level Internet domain name (including without
limitation ".com", ".net", or ".org"). Licensee shall automatically have the
right, on the terms and conditions set forth herein, to use any.

              c. In addition, Licensor hereby grants to Licensee the right to
authorize third parties to use, display, and reproduce the Existing Marks as
part of the New Marks for the purpose of marketing of Licensee's products and
services as Licensee shall deem necessary or appropriate in the conduct of the
Business.

              d. During the Term of this Agreement, Licensor will not license
any other person to use the Existing Marks in connection with activities
constituting the Business, nor will Licensor itself use the Existing Marks in
connection with any of Licensor's own activities constituting the Business
without the consent of Licensee.

              e. Nothing in this Agreement is intended to nor shall it limit or
impair Licensor's rights, during the Term, to (i) use or otherwise license the
Existing Marks to the extent not licensed to Licensee hereunder; or (ii) use or
license the Existing Marks to promote and advertise the sale of consumer
electronics and other items customarily sold by Licensor in its retail consumer
electronics stores.

       2. Restrictions on Use and Quality Control.

              a. Licensee shall use the Existing Marks as part of the New Marks
only in a manner and form (i) designed to maintain the high quality of the
Existing Marks; (ii) consistent with the use of the Existing Marks by Licensor
and its other licensees; (iii) that protects Licensor's ownership interest
therein; and (iv) that complies will all applicable federal, state, local and
foreign laws, rules and regulations, including, without limitation, all
applicable trademark laws, rules and regulations.

              b. Licensee represents and warrants that all products or services
placed in commerce and identified with the New Marks will meet all applicable
legal standards for health and safety and shall be in compliance with all
Federal, State, and local laws, rules and regulations.

              c. Licensee will, upon request by Licensor, deliver to Licensor at
the address listed below a copy of the pages comprising the Website and any
other use of the New Marks for the purpose of allowing Licensor to monitor the
quality of the use of the Marks.

              d. Licensee will upon request made from time to time, provide to
Licensor a list of third parties that Licensee has authorized to use, display,
and reproduce the New Marks.

       3. Protection of the Existing Marks and the New Marks.

              a. Licensee will at its expense take action that is necessary and
appropriate, including without limitation the commencement of litigation or
other legal proceedings, to protect the New Marks from infringement by any
person or party, and Licensee shall be entitled to all amounts received in
connection therewith. Licensor will have the right to intervene in any

                                       2
<PAGE>   14

such proceeding in order to protect the Existing Marks from infringement by any
person or party. Licensee shall promptly notify Licensor in writing of any
infringement or suspected infringement involving the Marks.

              b. Licensee expressly acknowledges that its use of the Existing
Marks hereunder inures to the benefit of Licensor and shall not confer on
Licensee any proprietary rights to the Existing Marks, which shall at all times
remain with Licensor and its assignees.

              c. Licensee shall not question, contest or challenge, either
during or after the Term, Licensor's ownership of the Existing Marks, and
Licensee shall claim no interest therein, except the right to use the Existing
Marks as part of the New Marks on the terms and conditions set forth herein.
Licensee shall not attempt to register the Existing Marks, or any of them.

       4. Consideration. In consideration for the License, Licensor shall pay to
Licensee the Royalty Payment described in the Royalty and Services Agreement of
even date herewith by and between Licensor and Licensee, calculated as provided
therein.

       5. Term.

              a. This term of this Agreement (the "TERM") shall commence on the
date hereof and continue in full force and effect until the thirtieth (30th)
anniversary of the Effective Date or until otherwise terminated in accordance
with the provisions hereof.

              b. Either party shall have the right, but not the obligation, to
terminate this Agreement immediately if at any time:

                     (1) the other party shall be in material breach of any of
its obligations hereunder, or under any other material agreement between the
parties or between Licensee and The Good Guys, Inc., a Delaware Corporation, and
such breach shall not be cured within thirty (30) days after receipt of written
notice thereof;

                     (2) the other party shall be the subject of a voluntary
petition in bankruptcy or any voluntary proceeding relating to insolvency,
receivership, liquidation or assignment for the benefit of creditors;

                     (3) the other party shall become the subject of any
involuntary petition in bankruptcy or any involuntary proceeding relating to
insolvency, receivership, liquidation or assignment for the benefit of
creditors, and such petition or proceeding shall not be dismissed within 60 days
of filing;

                     (4) the business of the other party shall be liquidated or
otherwise terminated on any basis;

                     (5) Licensee ceases to be actively and continuously engaged
in activities constituting the Business; or

                     (7) the other party performs any illegal acts;

                                       3
<PAGE>   15

              c. Licensee shall have the right, but not the obligation, to
terminate this Agreement at any time upon 180 days prior notice to Licensor.

              d. Licensor will have the right, but not the obligation, to
terminate This Agreement if Licensee is in material breach of its obligations
under that certain subscription and Royalty Agreement of even date herewith.

              e. A party may exercise its right to terminate pursuant to this
section 4 by written notice to the other party. No exercise by a party of its
rights under this section 4 shall limit its remedies by reason of the other
party's default, the party's rights to exercise any other rights under this
section 4 or any other rights of that party.

              f. Upon the termination of this Agreement, Licensee will assign
back to Licensor for no additional consideration all of Licensee's right, title,
and interest anywhere in the world in and to the New Marks, along with the
goodwill symbolized by the New Marks, and all registrations and applications for
registration with respect thereto.

       6. Representations and Warranties; Indemnity.

              a. Licensor represents and warrants to Licensee that: (i) it is
the owner of the Existing Marks; (ii) it has the right and power to grant the
License to Licensee as provided herein; and (iii) the grant of the License to
Licensee as provided herein does not require the consent of any third party.

              b. Licensor will indemnify and hold Licensee harmless from and
against any and all claims, judgments, damages, losses, costs and expenses
(including attorneys' fees and costs) arising out of a proceeding in which it is
asserted that Licensee's use of the Existing Marks as part of the New Marks
infringes the statutory or common law trademark rights of any third party.
Licensor will, at its sole cost and expense, defend all such claims, actions,
suits and proceedings on behalf of Licensee, with counsel of Licensor's choice,
provided that Licensee promptly notifies Licensor of such claims, actions suits,
or proceedings.

       7. Injunctive Relief. Licensee and Licensor acknowledge that money
damages would not adequately compensate either of them in the event of a breach
hereunder, and that injunctive relief would be essential for each party to
adequately protect itself hereunder. Accordingly, the parties agree that, in
addition to any other remedies available at law or in equity, each shall be
entitled to injunctive relief in the event of a breach of any covenant or
agreement contained herein.

       8. Miscellaneous.

              a. Assignment. Neither party may assign this Agreement or its
rights and obligations hereunder in whole or in part without the other party's
prior written consent which consent may not be unreasonably withheld or delayed.
Any attempt to assign this Agreement without such consent shall be void and of
no effect. Notwithstanding the foregoing, either party may assign this Agreement
or its rights and obligations hereunder to any entity controlled by it or to any
entity by which it is acquired by merger, purchase of capital stock, transfer of
substantially all assets or otherwise; provided that such entity shall
thereafter succeed to all

                                       4
<PAGE>   16

obligations of such party under this Agreement; and provided further, that no
such assignment will be effective unless the assignee succeeds to the assigning
party's interest in the Royalty and Services Agreement and Assignment of Domain
Name Agreement, of even date herewith.

              b. Amendment. No modification or amendment hereof shall be valid
and binding, unless it be in writing and signed by the parties hereto.

              c. Governing Law. This Agreement shall be governed by the internal
laws of the State of Delaware without giving effect to the conflict of law
principles thereof.

              d. Entire Agreement. This Agreement sets forth the entire
agreement between the parties hereto with respect to the subject matter hereof
and is intended to supersede all prior negotiations, understandings and
agreements.

              e. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and together which shall
constitute one and the same instrument.

              f. Waiver. The failure of any party to exercise any right or
remedy provided for herein shall not be deemed a waiver of any right or remedy
hereunder.

              g. Severability. If any provision of this Agreement is determined
by a court of competent jurisdiction to be invalid or otherwise unenforceable,
such determination shall not affect the validity or enforceability of any
remaining provisions of this Agreement. If any provision of this Agreement is
invalid under any applicable statute or rule of law, it shall be enforced to the
maximum extent possible so as to effect the intent of the parties, and the
remainder of this Agreement shall continue in full force and effect.

              h. Headings. The section headings used herein are for the
convenience of the parties only, are not substantive and shall not be used to
interpret or construe any of the provisions contained herein.

              i. Successors and Assigns. This Agreement and the undertakings and
representations herein contained shall inure to the benefit of and bind the
parties and their respective successors and assigns.

              j. Notice. Any and all notices or other communications hereunder
shall be sufficiently given if in writing and sent by hand, telecopier,
reputable overnight courier or by certified mail, return receipt requested,
postage prepaid, addressed to the party to receive the same at its address as
set forth below, or to such other address as the party to receive the same shall
have specified by written notice given in the manner provided herein. Such
notices or other communications shall be deemed to have been given on the date
of such delivery. Any party may change its address for the purpose of this
Agreement by notice to the other parties given as aforesaid.

                                       5
<PAGE>   17

          Notice to Licensor:                    Notice to Licensee:

          The Good Guys-California, Inc.         goodguys.com, inc.
          7000 Marina Blvd.                      9009 S.W. Hall Blvd.
          Brisbane, CA 94005                     Second Floor
          Attn: Chief Executive Officer          Tigard, OR 97223
                                                 Attn: Chief Executive Officer

                            [SIGNATURE PAGE FOLLOWS]

                                       6
<PAGE>   18

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
first set forth above.

THE GOOD GUYS-CALIFORNIA, INC.               GOODGUYS.COM, INC.

By:    /s/ RONALD UNKEFER                    By:    /s/ STUART N. JOHNSON
       -------------------------                    ----------------------------

Name:  RONALD UNKEFER                        Name:  STUART N. JOHNSON
       -------------------------                    ----------------------------

Title:                                       Title:
       -------------------------                    ----------------------------

<PAGE>   19

                                   SCHEDULE A

The Good Guys

The Good Guys!

The Good Guys (Stylized Letters)

Good Guys

Good Guys (Stylized Letters)

The Good Guys Logo

<PAGE>   20

                                    EXHIBIT D

                             Form of Tigard Sublease

<PAGE>   21

                       ASSIGNMENT OF DOMAIN NAME AGREEMENT

       This Assignment of Domain Name Agreement (the "AGREEMENT") is entered
into as of this 1st day of January, 2000 (the "EFFECTIVE DATE"), by and between
The Good Guys-California, Inc., a California corporation and The Goods Guys,
Inc., a Delaware corporation (collectively "ASSIGNORS"), and goodguys.com, inc.,
a Delaware corporation ("ASSIGNEE").

                             PRELIMINARY STATEMENTS

       A. Either or both of the Assignors is the registered owner of the domain
names listed in Schedule A which constitutes all of the domain names owned by
either the Assignor (the "DOMAIN NAMES"); and

       B. Assignee desires to acquire the Domain Names.

       NOW, THEREFORE, in consideration of the mutual promises and agreements
herein contained and for other good, valuable and binding consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

                             STATEMENT OF AGREEMENT

              1. Each Assignor hereby assigns to Assignee all of its right,
title and interest, throughout the world, in and to the Domain Names.

              2. Each Assignor and Assignee agree to execute whatever additional
instruments either party may reasonably request to effectuate or evidence any of
the transactions intended under this Agreement, including such documentation as
Network Solutions, Inc. or any other relevant entity may require to transfer
ownership of the Domain Names from the relevant Assignor to Assignee.

              3. Each Assignor acknowledges that Assignee shall have the right
to register in Assignee's name any derivation of domain names, including those
using different suffixes.

              4. The Domain Names are assigned to Assignee pursuant to on an "AS
IS" basis, without any representations or warranties whatsoever, except that
Assignee represents and warrants that it has not heretofore assigned the Domain
Names to any person or entity. Without limiting the generality of the foregoing,
EACH PARTY DISCLAIMS ANY AND ALL OTHER WARRANTIES OR REPRESENTATIONS, EXPRESS OR
IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
MERCHANTABILITY, TITLE, NON-INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE.

              5. Upon termination of that certain Trademark License Agreement
between the parties of even date herewith, Assignee shall have a right to
acquire all of Assignee's right, title, and interest in and to the Domain Names
for an amount equal to the then fair market value thereof. The closing of any
such acquisition shall occur on the ninth (9th) month anniversary of the
termination of the Trademark License Agreement.

<PAGE>   22

       6. Miscellaneous.

              a. This Agreement shall be governed by the internal laws of the
State of Delaware without giving effect to the conflict of law principles
thereof.

              b. This Agreement sets forth the entire agreement between the
parties hereto with respect to the subject matter hereof and is intended to
supersede all prior negotiations, understandings and agreements. No provision of
this Agreement may be waived or amended, except by a writing signed by Assignor
and Assignee.

              c. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original and together which shall constitute
one and the same instrument.

              d. The failure of any party to exercise any right or remedy
provided for herein shall not be deemed a waiver of any right or remedy
hereunder.

              e. If any provision of this Agreement is determined by a court of
competent jurisdiction to be invalid or otherwise unenforceable, such
determination shall not affect the validity or enforceability of any remaining
provisions of this Agreement. If any provision of this Agreement is invalid
under any applicable statute or rule of law, it shall be enforced to the maximum
extent possible so as to effect the intent of the parties, and the remainder of
this Agreement shall continue in full force and effect.

                                       2
<PAGE>   23

              f. Any and all notices or other communications hereunder shall be
sufficiently given if in writing and sent by hand, telecopier, reputable
overnight courier or by certified mail, return receipt requested, postage
prepaid, addressed to the party to receive the same at its address as set forth
below, or to such other address as the party to receive the same shall have
specified by written notice given in the manner provided for herein. Such
notices or other communications shall be deemed to have been given on the date
of such delivery. Any party may change its address for the purpose of this
Agreement by notice to the other parties given as aforesaid.

          Notice to Assignor:                    Notice to Assignee:

          The Good Guys-California, Inc.         goodguys.com, inc.
          7000 Marina Blvd.                      9009 S.W. Hall Blvd.
          Brisbane, CA 94005                     Second Floor
          Attn: Chief Executive Officer          Tigard, OR 97223
                                                 Attn: Chief Executive Officer

       IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first set forth above.

THE GOOD GUYS-CALIFORNIA; INC.               GOODGUYS.COM, INC.

By: /s/ RONALD UNKEFER                       By: /s/ STUART N. JOHNSON
   ---------------------------                  --------------------------------
Name: RONALD UNKEFER                         Name: STUART N. JOHNSON
     -------------------------                    ------------------------------
Title:                                       Title:
      ------------------------                     -----------------------------
Date:                                        Date:
     -------------------------                    ------------------------------

THE GOOD GUYS, INC.

By: /s/ RONALD UNKEFER
   ---------------------------
Name: RONALD UNKEFER
     -------------------------
Title:
      ------------------------
Date:
     -------------------------

                                       3
<PAGE>   24

                                   SCHEDULE A

                             EACH OF THE FOLLOWING*

thegoodguys.com

thegoodguys.org

thegoodguys.net

goodguys.com

goodguys.org

egoodguys.com

oe-goodguys.com

And all other domain names owned by The Good Guys-California, Inc. and/or by The
Good Guys, Inc.

*And any other names that differ from the following only with respect to
capitalization of certain letters.

                                       4
<PAGE>   25

                                    EXHIBIT C

                          Trademark License Agreement

<PAGE>   26

                    STOCK AND WARRANT SUBSCRIPTION AGREEMENT

       This Stock and Warrant Subscription Agreement (the "AGREEMENT") is made
and entered into as of the 1st day of January, 2000 (the "EFFECTIVE DATE"), by
and between goodguys.com, inc., a Delaware corporation ("DOTCOM"), and The Good
Guys-California, Inc., a California corporation ("GOOD GUYS").

                             PRELIMINARY STATEMENTS

       A. Dotcom desires to issue to Good Guys and Good Guys desires to
subscribe for and purchase from Dotcom, One Million One Hundred Forty Thousand
Seven Hundred Ninety Five (1,140,795) shares of Common Stock, par value $0.001,
of Dotcom (the "COMMON SHARES").

       B. Dotcom desires to issue to Good Guys and Good Guys desires to
subscribe for and purchase from Dotcom the stock purchase warrant described
herein (the "WARRANT").

       NOW, THEREFORE, for good, valuable and binding consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto, intending
to be legally bound hereby, now agree as follows:

                             STATEMENT OF AGREEMENT

       1. Subscription.

              (a) Common Shares. Good Guys hereby subscribes for the Common
       Shares, which shares equal nineteen and eighty seven one-hundredths
       percent (19.87%) of the issued and outstanding shares of Dotcom's common
       stock on and as of the date hereof. Dotcom hereby issues to and registers
       in the name of Good Guys one or more certificates evidencing the Common
       Shares.

              (b) Warrant. Good Guys hereby purchases and subscribes for the
       Dotcom Warrant attached hereto as Exhibit A.

       2. Consideration. In consideration for the subscription of the Common
Shares and the Warrant, Good Guys has entered into each of the Assignment of
Domain Name Agreement attached hereto as Exhibit B and the Trademark License
Agreement attached hereto as Exhibit C; and sublease space to Dotcom
substantially upon the terms and conditions set forth on Exhibit D. Concurrently
herewith, certain investors have subscribed for not less than $2.25MM of the
common stock of Dotcom.

       3. Anti-Dilution Protection. Notwithstanding any other provision hereof,
Dotcom agrees that the Common Shares shall be protected from dilution resulting
from any issuance of capital stock by Dotcom after the date hereof up to the
"Anti-Dilution Threshold." For purposes

<PAGE>   27

hereof, the Anti-Dilution Threshold shall mean, in the aggregate, issuances of
shares equal to fifteen percent (15%) of Dotcom's issued and outstanding shares
as of the date hereof.

       4. Representations and Warranties of Good Guys. Good Guys hereby
represents and warrants to Dotcom as follows:

              (a) Authorization. This Agreement constitutes Good Guys's valid
       and legally binding obligation, enforceable in accordance with its terms
       except as may be limited by applicable bankruptcy, insolvency,
       reorganization or other laws of general application relating to or
       affecting the enforcement of creditors' rights generally, and the effect
       of rules of law governing the availability of equitable remedies. Good
       Guys represents that it has full power and authority to enter into this
       Agreement.

              (b) Access to Information. Good Guys has had an opportunity to
       receive and review all documents and information that it considers
       material to its purchase of the Common Shares and to ask questions of and
       receive satisfactory answers from Dotcom, concerning Dotcom and the terms
       and conditions of the purchase of the Common Shares and the Warrant, and
       all such questions have been answered to the full satisfaction of Good
       Guys.

              (c) Knowledgeable Investor. Good Guys has such knowledge and
       experience in financial and business matters that it is capable of
       evaluating the merits and risks of purchasing the Common Shares.

              (d) Accredited Investor. Good Guys is an "accredited investor"
       within the meaning of Regulation D promulgated under the Securities Act.

              (e) Investment Intent. Good Guys understands that neither the
       Common Shares nor the Warrant have been registered under the Securities
       Act of 1933 (the "SECURITIES ACT"), or any other applicable state or
       federal securities statutes (collectively, the "ACTS"). Good Guys is
       purchasing the Common Shares and the Warrant for investment, for its own
       account, and with no present intention of reselling, directly or
       indirectly participating in any distribution of or otherwise disposing of
       the Common Shares. Good Guys understands that the Common Shares are
       subject to restrictions on transfer and that Good Guys may bear the
       economic risk of purchasing the Common Shares for an indefinite period of
       time.

              (f) No Brokers. Good Guys has not authorized any broker, dealer,
       agent or finder to act on its behalf nor does Good Guys have any
       knowledge of any broker; dealer, agent or finder purporting to act on its
       behalf with respect to this transaction.

              (g) Legend. Good Guys acknowledges that a legend substantially as
       follows will be placed on the certificates representing the Common Shares
       and the Warrant:

              THE SECURITIES HAVE NOT BEEN REGISTERED UNDER EITHER THE
              SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE AND MAY
              NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, ASSIGNED, PLEDGED OR
              HYPOTHECATED IN THE ABSENCE OF AN

                                       2
<PAGE>   28

              EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THE SECURITIES
              UNDER THE SECURITIES ACT OF 1933 AND ANY APPLICABLE STATE
              SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE
              ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED.

              (h) Reliance. Good Guys understands that the Common Shares and the
       Warrant are being offered and sold to it in reliance on specific
       provisions of federal and state securities laws and that Dotcom is
       relying upon the truth and accuracy of the representations, warranties,
       agreements, acknowledgements and understandings of Good Guys set forth
       herein in order to determine the applicability of such provisions;

       5. Representations and Warranties of Dotcom. Dotcom hereby represents and
warrants to Good Guys as follows:

              (a) Organization. Dotcom has been duly incorporated and is validly
       existing and in good standing under the laws of the State of Delaware,
       with full corporate power and authority to own, lease and operate its
       properties and to conduct its business as currently conducted, and is
       duly registered and qualified to conduct its business and is in good
       standing in each jurisdiction or place where the nature of its properties
       or the conduct of its business requires such registration or
       qualification, except where the failure to register or qualify is not
       reasonably anticipated to have a material adverse effect on the condition
       (financial or otherwise), business, properties, net worth or results of
       operations of Dotcom;

              (b) Shares. The Common Shares are duly authorized and validly
       issued, and when issued and delivered, shall be fully paid and
       non-assessable;

              (c) Authorization. This Agreement has been duly authorized,
       validly executed and delivered on behalf of Dotcom and is a valid and
       binding agreement of Dotcom enforceable in accordance with its terms,
       subject to general principles of equity and bankruptcy or other laws
       affecting the enforcement of creditors' rights generally, and Dotcom has
       full power and authority to execute and deliver this Agreement and the
       other agreements and documents contemplated hereby and to perform its
       obligations hereunder and thereunder;

              (d) No Conflict. The execution and delivery of this Agreement, the
       issuance of the Common Shares and the consummation of the transactions
       contemplated by this Agreement, will not conflict with or result in a
       breach of or a default under any of the terms or provisions of Dotcom's
       certificate of incorporation or by-laws, or of any material provision of
       any indenture, mortgage, deed of trust or other material agreement or
       instrument to which Dotcom is a party or by which it or any of its
       properties or assets is bound, any provision of any law, statute, rule,
       regulation, or any existing applicable decree, judgment or order by any
       court, federal or state regulatory body, administrative agency, or other
       governmental body having jurisdiction over Dotcom, or any of its
       properties or assets or will result in the creation or imposition of any
       lien, charge or encumbrance upon any property or assets of Dotcom
       pursuant to the terms of any

                                       3
<PAGE>   29

       agreement or instrument to which Dotcom is a party or by which Dotcom may
       be bound or to which any of Dotcom's property or Dotcom is subject; and

              (e) No Proceedings. There is no action, suit or proceeding before
       or by any court or governmental agency or body, domestic or foreign, now
       pending, or to Dotcom's knowledge, threatened, against or affecting
       Dotcom, or any of its properties, which would reasonably be anticipated
       to result in any material adverse change in the condition (financial or
       otherwise) or in the earnings, business affairs, business prospects,
       properties or assets of Dotcom.

       6. Miscellaneous.

              (a) Restrictions. Neither the Common Shares nor the Warrant may be
       offered for sale, sold or transferred except pursuant to (i) an effective
       registration under the Securities Act or in a transaction which is
       otherwise in compliance with the Securities Act, (ii) an effective
       registration under any applicable state securities statute or in a
       transaction otherwise in compliance with any applicable state securities
       statute, and (iii) evidence of compliance with the applicable securities
       laws of other jurisdictions. Good Guys shall furnish to Dotcom and Dotcom
       shall be entitled to rely upon an opinion of competent securities counsel
       acceptable to Dotcom with respect to compliance with the above laws.

              (b) Integration. This Agreement, together with the Exhibits
       hereto, sets forth the entire agreement between the parties hereto with
       respect to the subject matter hereof and is intended to supersede all
       prior negotiations, understandings and agreements.

              (c) Amendment. No modification or amendment hereof shall be valid
       and binding, unless it be in writing and signed by the parties hereto.

              (d) Successors and Assigns. This Agreement and the undertakings
       and representations herein contained shall inure to the benefit of and
       bind the parties and their respective successors and assigns.

              (e) Survival of Representations, Warranties and Covenants. The
       representations, warranties and covenants contained in this Agreement
       shall survive the issuance of the Common Shares to Good Guys and its
       payment therefor, and shall remain effective.

              (f) Headings. The section headings used herein are for the
       convenience of the parties only, are not substantive and shall not be
       used to interpret or construe any of the provisions herein.

              (g) Governing Law. This Agreement shall be governed by the
       internal laws of the state of Delaware without giving effect to the
       conflict of law principles thereof.

                                       4
<PAGE>   30

              (h) Counterparts. This Agreement may be executed in one or more
       counterparts, each of which shall be deemed an original and together
       which shall constitute one and the same instrument.

                                       5
<PAGE>   31

       IN WITNESS WHEREOF, this Agreement was duly executed on the date first
above written.

                                        GOOD GUYS.COM, INC.

                                        By: /s/ STUART N. JOHNSON
                                           -------------------------------------

                                        Name: STUART N. JOHNSON
                                             -----------------------------------

                                        Title:
                                              ----------------------------------

                                        THE GOOD GUYS-CALIFORNIA, INC.

                                        By: /s/ RONALD UNKEFER
                                           -------------------------------------

                                        Name: RONALD UNKEFER
                                             -----------------------------------

                                        Title:
                                              ----------------------------------

<PAGE>   32

                                    EXHIBIT A

             Warrant to Purchase Common Stock of goodguys.com, inc.

<PAGE>   33

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, OR ANY
APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION UNDER SUCH ACT AND APPLICABLE
LAWS, OR THE AVAILABILITY OF AN EXEMPTION FROM SUCH REGISTRATION, OR AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT LEGALLY
REQUIRED.

No. 001

                        WARRANT TO PURCHASE COMMON STOCK

                                       OF

                               GOODGUYS.COM, INC.

       This certifies that, beginning on the date of this Warrant, for value
received, The Good Guys-California, Inc., a California corporation ("GOOD
GUYS"), or registered assigns (the "HOLDER"), is entitled to purchase from
goodguys.com, inc., a Delaware corporation (the "COMPANY"), shares of the Common
Stock of the Company, $.001 par value (the "COMMON STOCK"), in the amount set
forth in Section 2, upon surrender hereof, at the principal office of the
Company referred to below, with a duly executed Notice of Exercise in the form
attached, and simultaneous payment therefor in lawful money of the United States
or otherwise as hereinafter provided, at the Exercise Price as set forth in
Section 3. The number, character and Exercise Price of such shares of Common
Stock are subject to adjustment as provided below. The term "WARRANT" as used
herein shall include this Warrant, and any warrants delivered in substitution or
exchange therefor as provided herein.

       1. Term of Warrant. Subject to the terms and conditions set forth herein,
this Warrant shall be exercisable, in whole or in part, beginning upon the
occurrence of a Liquidity Event (as defined below) and ending ten (10) business
days thereafter. Subject to the notice requirements of Section 10 hereof, after
such date, this Warrant shall be void. The term "LIQUIDITY EVENT" shall mean:
(i) a sale of all or substantially all of the assets of the Company, (ii) a
merger of the Company with or into another entity (or corporate reorganization
of similar effect), or (iii) an initial public offering of shares of the
Company's common stock.

       2. Number of Shares Which May Be Purchased. The total number of shares of
Common Stock purchasable pursuant to this Warrant is equal to the number of
shares that, when added to the number of shares issued to Good Guys under the
Stock and Warrant Subscription Agreement dated January 1, 2000 by and between
the Company and Good Guys, equals forty-nine and nine-tenths percent (49.9%) of
the Company's issued and outstanding Common Stock as of the date hereof, as
calculated on a fully

<PAGE>   34

diluted basis (including all options, warrants, securities convertible into
Common Stock, and other rights to acquire Common Stock, and assuming for
purposes of such calculation employee options equal to fifteen percent (15%) of
the Common Stock as of the date hereof).

       3. Exercise Price. The purchase price per share for the Common Stock
purchased under this Warrant (the "EXERCISE PRICE") shall be one cent ($.01) per
share, as adjusted from time to time pursuant to Section 12 hereof.

       4. Exercise of Warrant.

              (a) Method of Exercise. The purchase rights represented by this
Warrant are exercisable by the Holder in whole or in part, at any time, or from
time to time, during the term hereof as described in Section 1 above, by the
surrender of this Warrant and the Notice of Exercise annexed hereto duly
completed and executed on behalf of the Holder, at the office of the Company,
and upon payment equal to the aggregate Exercise Price of the Common Stock being
purchased in cash or by check payable to the Company.

              (b) Other Matters. This Warrant shall be deemed to have been
exercised immediately prior to the close of business on the date of its
surrender for exercise as provided above, and the person entitled to receive the
shares of Common Stock issuable upon such exercise shall be treated for all
purposes as the holder of record of such shares as of the close of business on
such date. As promptly as practicable on or after such date and in any event
within ten (10) days thereafter, the Company at its expense shall issue and
deliver to the person or persons entitled to receive the same a certificate or
certificates for the number of shares issuable upon such exercise. In the event
that this Warrant is exercised in part, the Company at its expense will execute
and deliver a new Warrant of like tenor exercisable for the remaining number of
shares for which this Warrant may then be exercised.

       5. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. In lieu of any fractional share to which the Holder would otherwise be
entitled, the Company shall make a cash payment equal to the Exercise Price
multiplied by such fraction.

       6. Replacement of Warrant. On receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant
and, in the case of loss, theft or destruction, on delivery of an indemnity
agreement reasonably satisfactory in form and substance to the Company or, in
the case of mutilation, on surrender and cancellation of this Warrant, the
Company at its expense shall execute and deliver, in lieu of this Warrant, a new
warrant of like tenor and amount.

       7. No Rights as Stockholder. This Warrant shall not entitle its Holder,
as such, to any of the rights of a stockholder of the Company.

                                       2
<PAGE>   35

       8. Transfer of Warrant.

              (a) Warrant Register. The Company will maintain a register (the
"Warrant Register") containing the names and addresses of the Holder or Holders.
Any Holder of this Warrant or any portion thereof may change his or her address
as shown on the Warrant Register by written notice to the Company requesting
such change. Any notice or written communication required or permitted to be
given to the Holder may be delivered or given by mail to such Holder as shown on
the Warrant Register and at the address shown on the Warrant Register. Until
this Warrant is transferred on the Warrant Register of the Company, the Company
may treat the Holder as shown on the Warrant Register as the absolute owner of
this Warrant for all purposes, notwithstanding any notice to the contrary.

              (b) Transferability and Nonnegotiability of Warrant. This Warrant
may not be transferred or assigned in whole or in part without compliance with
all applicable federal and state securities laws by the transferor and the
transferee (including the delivery of investment representation letters and
legal opinions reasonably satisfactory to the Company, if such are requested by
the Company). Subject to compliance with the Securities Act of 1933 (the "ACT"),
and applicable state securities laws, title to this Warrant may be transferred
by endorsement (by the Holder executing the Assignment Form annexed hereto) and
delivery in the same manner as a negotiable instrument transferable by
endorsement and delivery.

              (c) Exchange of Warrant Upon a Transfer. On surrender of this
Warrant for exchange, properly endorsed on the Assignment Form and subject to
the provisions of this Warrant with respect to compliance with the Act and
with the limitations on assignments and transfers contained in this Section 8,
the Company at its expense shall issue to or on the order of the Holder a new
warrant or warrants of like tenor, in the name of the Holder or as the Holder
(on payment by the Holder of any applicable transfer taxes) may direct, for the
number of shares issuable upon exercise hereof.

              (d) Compliance with Securities Laws.

                     (i) The Holder of this Warrant, by acceptance hereof,
acknowledges that this Warrant and the shares of Common Stock to be issued upon
exercise hereof are being acquired solely for the Holder's own account for
investment, and that the Holder will not offer, sell or otherwise dispose of
this Warrant or any shares of Common Stock to be issued upon exercise hereof
except under circumstances that will not result in a violation of the Act or any
state securities laws. Upon exercise of this Warrant, the Holder shall, if
requested by the Company, confirm in writing, in a form satisfactory to the
Company, that the shares of Common Stock so purchased are being acquired for
investment, and not with a view toward distribution or resale in violation of
applicable securities laws.

                                       3
<PAGE>   36

                     (ii) All shares, of Common Stock issued upon exercise
hereof shall be stamped or imprinted with a legend in substantially the
following form (in addition to any legend required by state securities laws):

       THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND
       HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY
       APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD OR
       TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM
       UNDER SAID ACT AND APPLICABLE LAWS.

       9. Reservation of Stock. The Company covenants that during the term this
Warrant is exercisable, the Company will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Common Stock upon the exercise of this Warrant and, from time to time, will
take all steps necessary to amend its corporate charter to provide sufficient
reserves of shares of Common Stock issuable upon exercise of the Warrant. The
Company further covenants that all shares that may be issued upon the exercise
of rights represented by this Warrant and payment of the Exercise Price, all as
set forth herein, will be free from all taxes, liens and charges in respect of
the issue thereof.

       10. Notices.

              (a) Holder shall notify the Company of its intent to exercise the
Warrant within ten (10) business days of receipt of notice of a pending
Liquidation Event.

              (b) Whenever the Exercise Price or number of shares purchasable
hereunder shall be adjusted pursuant to Section 12 hereof, the Company shall
issue a certificate signed by its Chief Financial Officer setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the Exercise
Price and number of shares purchasable hereunder after giving effect to such
adjustment, and shall cause a copy of such certificate to be mailed (by
first-class mail, postage prepaid) to the Holder of this Warrant.

              (c) In case:

                     (i) the Company shall take a record of the holders of its
Common Stock (or other stock or securities at the time receivable upon the
exercise of this Warrant) for the purpose of entitling them to receive any
dividend or other distribution, or any right to subscribe for or purchase any
shares of stock of any class or any other securities, or to receive any other
right, or

                     (ii) of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or
merger of the Company with or into another corporation, or any conveyance of all
or substantially all of the assets of the Company to another corporation, or

                                       4
<PAGE>   37

                     (iii) of any voluntary dissolution, liquidation or
winding-up of the Company,

then, and in each such case, the Company will mail or cause to be mailed to the
Holder or Holders a notice specifying, as the case may be, (A) the date on which
a record is to be taken for the purpose of such dividend, distribution or right,
and stating the amount and character of such dividend, distribution or right, or
(B) the date on which such reorganization, reclassification, consolidation,
merger, conveyance, dissolution, liquidation or winding-up is to take place, and
the time, if any is to be fixed, as of which the holders of record of Common
Stock (or such stock or securities at the time receivable upon the exercise of
this Warrant) shall be entitled to exchange their shares of Common Stock (or
such other stock or securities) for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation or winding-up. Such notice shall be mailed at least 15
days prior to the date therein specified.

              (d) All such notices, advices and communications shall be deemed
to have been received (i) in the case of personal delivery, on the date of such
delivery and (ii) in the case of mailing, on the third business day following
the date of such mailing.

       11. Amendments. Any term of this Warrant may be amended with the written
consent of the Company and all of the Holders of this Warrant.

       12. Adjustments. The Exercise Price and the number of shares purchasable
hereunder are subject to adjustment from time to time as follows:

              (a) Merger, Sale of Assets, etc. If at any time while this
Warrant, or any portion thereof, is outstanding and unexpired there shall be (i)
a reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), (ii) a merger of
consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, or a reverse triangular merger in which the
Company is the surviving entity but the shares of the Company's capital stock
outstanding immediately prior to the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash, or
otherwise, or (iii) a sale or transfer of the Company's properties and assets
as, or substantially as, an entirety to any other person, then, as a part of
such reorganization, merger, consolidation, sale or transfer, provision shall be
made so that the holder of this Warrant shall thereafter be entitled to receive
upon exercise of this Warrant, during the period specified herein and upon
payment of the Exercise Price then in effect, the number of shares of stock or
other securities or property of the successor corporation resulting from such
reorganization, merger, consolidation, sale or transfer that a holder of the
shares deliverable upon exercise of this Warrant would have been entitled to
receive in such reorganization, merger, consolidation, sale or transfer if this
Warrant had been exercised immediately before such reorganization, merger,
consolidation, sale or transfer, all subject to further adjustment as provided
in this Section 12. The foregoing provisions of this Section 12(a)

                                       5
<PAGE>   38

shall similarly apply to successive reorganizations, consolidations, mergers,
sales and transfers and to the stock or securities of any other corporation that
are at the time receivable upon the exercise of this Warrant. If the per-share
consideration payable to the holder hereof for shares in connection with any
such transaction is in a form other than cash or marketable securities, then the
value of such consideration shall be determined in good faith by the Company's
Board of Directors. In all events, appropriate adjustment (as determined in good
faith by the Company's Board of Directors) shall be made in the application of
the provisions of this Warrant with respect to the rights and interests of the
Holder after the transaction, to the end that the provisions of this Warrant
shall be applicable after that event, as near as reasonably may be, in relation
to any shares or other property deliverable after that event upon exercise of
this Warrant.

              (b) Reclassification, etc. If the Company, at any time while this
Warrant, or any portion hereof, remains outstanding and unexpired, by
reclassification of securities or otherwise, shall change any of the securities
as to which purchase rights under this Warrant exist into the same or a
different number of securities of any other class or classes, this Warrant shall
thereafter represent the right to acquire such number and kind of securities as
would have been issuable as the result of such change with respect to the
securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change, and the Exercise
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 12.

              (c) Split, Subdivision or Combination of Shares. If the Company at
any time while this Warrant, or any portion hereof, remains outstanding and
unexpired shall split, subdivide or combine the securities as to which purchase
rights under this Warrant exist, into a different number of securities of the
same class, the Exercise Price for such securities shall be proportionately
decreased in the case of a split or subdivision or proportionately increased in
the case of a combination.

              (d) Adjustments for Dividends in Stock or Other Securities or
Property. If while this Warrant, or any portion hereof, remains outstanding and
unexpired the holders of the securities as to which purchase rights under this
Warrant exist at the time shall have received, or, on or after the record date
fixed for the determination of eligible stockholders, shall have become entitled
to receive, without payment therefor, other or additional stock or other
securities or property (other than cash) of the Company by way of dividend, then
and in each case, this Warrant shall represent the right to acquire, in addition
to the number of shares of the security receivable upon exercise of this
Warrant, and without payment of any additional consideration therefor, the
amount of such other or additional stock or other securities or property (other
than cash) of the Company that such holder would hold on the date of such
exercise had it been the holder of record of the security receivable upon
exercise of this Warrant on the date hereof and had thereafter, during the
period from the date hereof to and including the date of such exercise, retained
such shares and/or all other additional stock available by it as aforesaid

                                       6
<PAGE>   39

during such period, giving effect to all adjustments called for during such
period by the provisions of this Section 12.

              (e) Certificate as to Adjustments. Upon the occurrence of each
adjustment or readjustment pursuant to this Section 12, the Company at its
expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to each Holder of this Warrant a Certificate
setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Company shall, upon the
written request, at any time, of any such Holder, furnish or cause to be
furnished to such Holder a like certificate setting forth: (i) such adjustments
and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the
number of shares and the amount, if any, of other property that at the time
would be received upon the exercise of the Warrant.

              (f) No Impairment. The Company will not, by any voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good
faith assist in the carrying out of all the provisions of this Section 12 and in
the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder of this Warrant against impairment.

       13. Miscellaneous.

              (a) Successors and Assigns. This Warrant and the rights evidenced
hereby shall inure to the benefit of and be binding upon the successors of the
Company and the Holder and their respective permitted assigns. The provisions of
this Warrant are intended to be for the benefit of all Holders from time to time
of this Warrant, and shall be enforceable by any such Holder.

              (b) Headings. The headings of the Sections of this Warrant are for
the convenience of reference only and shall not, for any purpose, be deemed a
part of this Warrant.

              (c) Governing Law. This Warrant shall be governed by the laws of
the State of Delaware, excluding that body of law relating to conflicts of laws.

              (d) Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given when personally delivered or mailed, by registered or certified mail
as follows:

          if to Holder:                    The Good Guys-California, Inc.
                                           7000 Marina Blvd.
                                           Brisbane, CA 94005
                                           Attn: Chief Executive Officer

                                       7
<PAGE>   40

          if to Company:                   goodguys.com, inc.
                                           9009 S.W. Hall Blvd., Second Floor
                                           Tigard, OR 97223
                                           Attn: Chief Executive Officer

Such addresses may be changed from time to time by written notice to the other
party.

                            [SIGNATURE PAGE FOLLOWS]

                                       8
<PAGE>   41

       IN WITNESS WHEREOF, the undersigned has caused this Warrant to be
executed by its officers thereunto duly authorized.

Dated: January 1, 2000.                 The Company:

                                        GOODGUYS.COM, INC.

                                        By:    /s/ STUART N. JOHNSON
                                               ---------------------------------

                                        Name:   STUART N. JOHNSON
                                               ---------------------------------

                                        Title:
                                               ---------------------------------

<PAGE>   42

                               NOTICE OF EXERCISE

       (1) The undersigned hereby elects to purchase ___________ shares of
Common Stock of goodguys.com, inc., pursuant to the provisions of Section 4(a)
of the attached Warrant, and tenders herewith payment of the purchase price for
such shares in full.

       (2) In exercising this Warrant, the undersign hereby confirms and
acknowledges that the shares of Common Stock are being acquired solely for
investment, and that the undersigned will not offer, sell or otherwise dispose
of any such shares of Common Stock except in compliance with the Securities Act
of 1933 or any applicable state securities laws.

       (3) Please issue a certificate or certificates representing said shares
of Common Stock in the name of the undersigned or in the following name:
___________________.

       (4) Please issue a new Warrant for the unexercised portion of the
attached Warrant in the name of the undersigned or in the following name:
___________________.

Dated:
      --------------------------        ---------------------------------------

                                        By:
                                               --------------------------------

                                        Name:
                                               --------------------------------

                                        Title:
                                               --------------------------------

<PAGE>   43

                                 ASSIGNMENT FORM

       FOR VALUE RECEIVED, the undersigned registered owner of this Warrant
hereby sells, assigns and transfers unto the Assignee named below all of the
rights of the undersigned under the within Warrant, with respect to the number
of shares of Common Stock set forth below:

NAME OF ASSIGNEE                 ADDRESS                           NO. OF SHARES

and does hereby irrevocably constitute and appoint _____________ to make such
transfer on the books of goodguys.com, inc., maintained for the purpose, with
full power of substitution in the premises.

       The undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the shares of stock to be issued upon
exercise hereof are being acquired for investment and that the Assignee will not
offer, sell or otherwise dispose of this Warrant or any shares of stock to be
issued upon exercise hereof except in compliance with the Securities Act of 1933
or any state securities laws. Further, the Assignee has acknowledge that upon
exercise of this Warrant, the Assignee shall, if requested by the Company,
confirm in writing, in a form satisfactory to the Company, that the shares of
stock so purchased are being acquired for investment and not with a view toward
distribution or resale.

Dated:
      --------------------------        ---------------------------------------

                                        By:
                                               --------------------------------

                                        Name:
                                               --------------------------------

                                        Title:
                                               --------------------------------

<PAGE>   44

                                    EXHIBIT B

                      Assignment of Domain Name Agreement<PAGE>   1

                                                                     EXHIBIT 4.1

                 ----------------------------------------------

                                  MERRILL LYNCH

                                    ---------
                                     SPECIAL
                                    ---------

                                PROTOTYPE DEFINED

                                CONTRIBUTION PLAN

                               ADOPTION AGREEMENT

                 ----------------------------------------------

                                   401(k) PLAN

                              EMPLOYEE THRIFT PLAN

                               PROFIT-SHARING PLAN

                         LETTER SERIAL NUMBER: D359287b
                      NATIONAL OFFICE LETTER DATE: 6/29/93

THIS PROTOTYPE PLAN AND ADOPTION AGREEMENT ARE IMPORTANT LEGAL INSTRUMENTS WITH
LEGAL AND TAX IMPLICATIONS FOR WHICH THE SPONSOR, MERRILL LYNCH, PIERCE, FENNER
& SMITH, INCORPORATED, DOES NOT ASSUME RESPONSIBILITY. THE EMPLOYER IS URGED TO
CONSULT WITH ITS OWN ATTORNEY WITH REGARD TO THE ADOPTION OF THIS PLAN AND ITS
SUITABILITY TO ITS CIRCUMSTANCES.

<PAGE>   2

ADOPTION OF PLAN

The Employer named below hereby establishes or restates a profit-sharing plan
that includes a [X] 401(k), [X] profit-sharing and/or [ ] thrift plan feature
(the "Plan") by adopting the Merrill Lynch Special Prototype Defined
Contribution Plan and Trust as modified by the terms and provisions of this
Adoption Agreement.

EMPLOYER AND PLAN INFORMATION

Employer Name:*    THE GOOD GUYS, INC.

Business Address:  1600 HARBOR BAY PARKWAY
                   ALAMEDA, CA 94502

Telephone Number:  (510) 521-7100

Employer Taxpayer ID Number: 94-2366177

Employer Taxable Year ends on: SEPTEMBER 30TH

Plan Name: THE GOOD GUYS DEFERRED PAY AND PROFIT-SHARING PLAN

Plan Number: 002

<TABLE>
<CAPTION>
                                      401(k)       PROFIT SHARING        THRIFT
<S>                                 <C>            <C>                   <C>
Effective Date of Adoption
           or Restatement:          05/01/2001       05/01/2001

Original Effective Date:            01/01/1984       10/01/1977

</TABLE>

IF THIS PLAN IS A CONTINUATION OR AN AMENDMENT OF A PRIOR PLAN, ALL OPTIONAL
FORMS OF BENEFITS PROVIDED IN THE PRIOR PLAN MUST BE PROVIDED UNDER THIS PLAN TO
ANY PARTICIPANT WHO HAD AN ACCOUNT BALANCE, WHETHER OR NOT VESTED, IN THE PRIOR
PLAN.

--------------------------

  * If there are any Participating Affiliates in this Plan, list below the
    proper name of each Participating Affiliate.

     THE GOOD GUYS-CALIFORNIA, INC.

     ______.

     ______.

                                       2
<PAGE>   3

                             ARTICLE I. DEFINITIONS

A.   "COMPENSATION"

(1)  With respect to each Participant, except as provided below, Compensation
     shall mean the (select all those applicable for each column):

<TABLE>
<CAPTION>
401(k) AND/        PROFIT
 OR THRIFT         SHARING
<S>                <C>
   [X]               [X] (a) amount reported in the "Wages Tips and Other
                             Compensation" Box on Form VV-2 for the applicable
                             period selected in Item 5 below.

   [ ]               [ ] (b) compensation for Code Section 415 safe-harbor
                             purposes (as defined in Section 3.9.1 (H)(i) of
                             basic plan document #03) for the applicable period
                             selected in Item 5 below.

   [ ]               [ ] (c) amount reported pursuant to Code Section 3401(a)
                             for the applicable period selected in Item 5 below.

   [ ]               [ ] (d) all amounts received (under options (a) (b) or (c)
                             above) for personal services rendered to the
                             Employer but excluding (select one):

                       [ ]   overtime
                       [ ]   bonuses
                       [ ]   commissions
                       [ ]   amounts in excess of $______
                       [ ]   other (specify)
</TABLE>

(2)  Treatment of Elective Contributions (select one):

     [X] (a) For purposes of contributions, Compensation shall include Elective
             Deferrals and amounts excludable from the gross income of the
             Employee under Code Section 125, Code Section 402(e)(3), Code
             Section 402(h) or Code Section 403(b) ("elective contributions").

     [ ] (b) For purposes of contributions, Compensation shall not include
             "elective contributions."

(3)  CODA Compensation (select one):

     [X] (a) For purposes of the ADP and ACP Tests, Compensation shall include
             "elective contributions."

     [ ] (b) For purposes of the ADP and ACP Tests, Compensation shall not
             include "elective contributions."

                                       3
<PAGE>   4

(4)  With respect to Contributions to an Employer Contributions Account,
     Compensation shall include all Compensation (select one):

     [ ] (a) during the Plan Year in which the Participant enters the Plan.

     [X] (b) after the Participant's Entry Date.

(5)  The applicable period for determining Compensation shall be (select one):

     [X] (a) the Plan Year.

     [ ] (b) the Limitation Year.

     [ ] (c) the consecutive 12-month period ending on ______.

B.   "DISABILITY"

(1)  Definition

     Disability shall mean a condition which results in the Participant's
     (select one):

     [ ] (a) inability to engage in any substantial gainful activity by
             reason of any medically determinable physical or mental impairment
             that can be expected to result in death or which has lasted or can
             be expected to last for a continuous period of not less than 12
             months.

     [X] (b) total and permanent inability to meet the requirements of the
             Participant's customary employment which can be expected to last
             for a continuous period of not less than 12 months.

     [ ] (c) qualification for Social Security disability benefits.

     [ ] (d) qualification for benefits under the Employer's long-term
             disability plan.

(2)  Contributions Due to Disability (select one):

     [X] (a) No contributions to an Employer Contributions Account will be
             made on behalf of a Participant due to his or her Disability.

     [ ] (b) Contributions to an Employer Contributions Account will be
             made on behalf of a Participant due to his or her Disability
             provided that: the Employer elected option (a) or (c) above as the
             definition of Disability, contributions are not made on behalf of
             a Highly Compensated Employee, the contribution is based on the
             Compensation each such Participant would have received for the
             Limitation Year if the Participant had been paid at the rate of
             Compensation paid immediately before his or her Disability, and
             contributions made on behalf of such Participant will be
             nonforfeitable when made.

                                       4
<PAGE>   5

C.   "EARLY RETIREMENT" is (select one):

     [X] (1) not permitted.

     [ ] (2) permitted if a Participant terminates Employment before Normal
             Retirement Age and has (select one):

               [ ]  (a) attained age ___.

               [ ]  (b) attained age ___ and completed ___ Years of Service.

               [ ]  (c) attained age ___ and completed ___ Years of Service as a
                        Participant.

D.   "ELIGIBLE EMPLOYEES" (select one):

     [ ] (1) All Employees are eligible to participate in the Plan.

     [X] (2) The following Employees are not eligible to participate in the Plan
             (select all those applicable):

         [X] (a) Employees included in a unit of Employees covered by a
                 collective bargaining agreement between the Employer or a
                 Participating Affiliate and the Employee representatives (not
                 including any organization more than half of whose members are
                 Employees who are owners, officers, or executives of the
                 Employer or Participating Affiliate) in the negotiation of
                 which retirement benefits were the subject of good faith
                 bargaining, unless the bargaining agreement provides for
                 participation in the Plan.

         [X] (b) non-resident aliens who received no earned income from the
                 Employer or a Participating Affiliate which constitutes income
                 from sources within the United States.

         [ ] (c) Employees of an Affiliate.

         [ ] (d) Employees employed in or by the following specified division,
                 plant, location, job category or other identifiable individual
                 or group of Employees: ________________.

                                       5
<PAGE>   6

E.   "ENTRY DATE" Entry Date shall mean (select as applicable):

<TABLE>
<CAPTION>
401(k)
AND/OR         PROFIT
THRIFT         SHARING
<S>            <C>
   [ ]               [ ] (1) If the initial Plan Year is less than twelve  months, the ___ day of
                             __________ and thereafter:

   [ ]               [ ] (2) the first day of the Plan Year following the date the Employee meets the
                             eligibility requirements. If the Employer elects this option (2) establishing
                             only one Entry Date, the eligibility "age and service" requirements elected
                             in Article II must be no more than age 20-1/2 and 6 months of service.

   [ ]               [ ] (3) the first day of the month following the date the Employee meets the
                             eligibility requirements.

   [ ]               [ ] (4) the first day of the Plan Year and the first day of the seventh month of the
                             Plan Year following the date the Employee meets the eligibility requirements.

   [X]               [X] (5) the first day of the Plan Year, the first day of the fourth month of the
                             Plan Year, the first day of the seventh month of the Plan Year, and the first
                             day of the tenth month of the Plan Year following the date the Employee meets the
                             eligibility requirements.

   [ ]               [ ] (6) other:
                             provided that the Entry Date or Dates selected are no later than any of the options
                             above.
</TABLE>

F.   "HOURS OF SERVICE"

Hours of Service for the purpose of determining a Participant's Period of
Severance and Year of Service shall be determined on the basis of the method
specified below:

     (1) Eligibility Service: For purposes of determining whether a Participant
         has satisfied the eligibility requirements, the following method shall
         be used (select one):

<TABLE>
<CAPTION>
          401(k)
          AND/OR         PROFIT
          THRIFT         SHARING
         <S>             <C>
             [X]            [X] (a) elapsed time method
             [ ]            [ ] (b) hourly records method
</TABLE>

                                       6
<PAGE>   7

     (2) Vesting Service: A Participant's nonforfeitable interest shall be
         determined on the basis of the method specified below (select one):

         [X] (a) elapsed time method
         [ ] (b) hourly records method
         [ ] (c) If this item (c) is checked, the Plan only provides for
                 contributions that are always 100% vested and this item (2)
                 will not apply.

     (3) Hourly Records: For the purpose of determining Hours of Service under
         the hourly record method (select one):

         [ ] (a) only actual hours for which an Employee is paid or entitled to
                 payment shall be counted.

         [ ] (b) an Employee shall be credited with 45 Hours of Service if such
                 Employee would be credited with at least 1 Hour of Service
                 during the week.

G.   "INTEGRATION LEVEL"

     [X] (1) This Plan is not integrated with Social Security.

     [ ] (2) This Plan is integrated with Social Security. The Integration Level
             shall be (select one):

             [ ] (a) the Taxable Wage Base.
             [ ] (b) $_______ (a dollar amount less than the Taxable Wage Base).
             [ ] (c) _____% of the Taxable Wage Base (not to exceed 100%).
             [ ] (d) the greater of $10,000 or 20% of the Taxable Wage Base.

H.   "LIMITATION COMPENSATION"

For purposes of Code Section 415, Limitation Compensation shall be compensation
as determined for purposes of (select one):

     [ ] (1) Code Section 415 Safe-Harbor as defined in Section 3.9.1(H)(i) of
             basic plan document #03.

     [X] (2) the "Wages, Tips and Other Compensation" Box on Form W-2.

     [ ] (3) Code Section 3401(a) Federal Income Tax Withholding.

I.   "LIMITATION YEAR"

For purposes of Code Section 415, the Limitation Year shall be (select one):

     [X] (1) the Plan Year.

     [ ] (2) the twelve consecutive month period ending on the __ day of the
             month of _____________.

                                       7
<PAGE>   8

J.   "NET PROFITS" are (select one):

     [X] (1) not necessary for any contribution.

     [ ] (2) necessary for (select all those applicable):

         [ ] (a) Profit-Sharing Contributions.
         [ ] (b) Matching 401(k) Contributions.
         [ ] (c) Matching Thrift Contributions.

K.   "NORMAL RETIREMENT AGE"

Normal Retirement Age shall be (select one):

         [X] (1) attainment of age 65 (not more than 65) by the Participant.

         [ ] (2) attainment of age __ (not more than 65) by the Participant or
                 the ___ anniversary (not more than the 5th) of the first day of
                 the Plan Year in which the Eligible Employee became a
                 Participant, whichever is later.

         [ ] (3) attainment of age __ (not more than 65) by the Participant or
                 the ___ anniversary (not more than the 5th) of the first day on
                 which the Eligible Employee performed an Hour of Service,
                 whichever is later.

L.   "PARTICIPANT DIRECTED ASSETS" are:

<TABLE>
<CAPTION>
         401(k) AND/      PROFIT
          OR THRIFT       SHARING
            <S>           <C>
             [X]            [X] (1) permitted.
             [ ]            [ ] (2) not permitted.
</TABLE>

M.   "PLAN YEAR"

The Plan Year shall end on the 30th day of SEPTEMBER.

N.   "PREDECESSOR SERVICE"

     Predecessor service will be credited (select one):

         [X] (1) only as required by the Plan.

         [ ] (2) to include, in addition to the Plan requirements and subject to
                 the limitations set forth below, service with the following
                 predecessor employer(s) determined as if such predecessors were
                 the Employer: ________.

                                       8
<PAGE>   9

     Service with such predecessor employer applies [select either or both (a)
     and/or (b); (c) is only available in addition to (a) and/or (b)]:

         [ ] (a) for purposes of eligibility to participate;
         [ ] (b) for purposes of vesting;
         [ ] (c) except for the following service: ______________.

O.   "VALUATION DATE"
Valuation Date shall mean (select one for each column, as applicable):

<TABLE>
<CAPTION>
401(k) AND/     PROFIT
OR THRIFT       SHARING
<S>             <C>
   [ ]            [ ] (1) the last business day of each month.

   [ ]            [ ] (2) the last business day of each quarter within the Plan Year.

   [ ]            [ ] (3) the last business day of each semi-annual period within the Plan Year.

   [ ]            [ ] (4) the last business day of the Plan Year.

   [X]            [X] (5) other: THE CLOSE OF BUSINESS EACH DAY.

</TABLE>
                            ARTICLE II. PARTICIPATION

PARTICIPATION REQUIREMENTS

An Eligible Employee must meet the following requirements to become a
Participant (select one or more for each column, as applicable):

<TABLE>
<CAPTION>
401(k) AND/     PROFIT
OR THRIFT       SHARING
<S>             <C>
   [ ]            [ ] (1) Performance of one Hour of Service.

   [ ]            [ ] (2) Attainment of age __ (maximum 20 1/2) and completion
                          of _______  (not more than 1/2) Years of Service. If
                          this item is selected, no Hours of Service shall be
                          counted.

   [X]            [X] (3) Attainment of age 0 (maximum 21) and completion of
                          1/4 Year(s) of Service. If more than one Year of
                          Service is selected, the immediate 100% vesting
                          schedule must be selected in Article VII of this
                          Adoption Agreement.
</TABLE>

                                       9
<PAGE>   10

<TABLE>
<CAPTION>
401(k) AND/     PROFIT
OR THRIFT       SHARING
<S>             <C>
   [ ]            [ ] (4) Attainment of age__ (maximum 21) and completion of
                          ___ Year(s) of Service. If more than one Year of
                          Service is selected, the immediate 100% vesting
                          schedule must be selected in Article VII of this
                          Adoption Agreement.

   [ ]            [ ] (5) Each Employee who is an Eligible Employee on ______
                          will be deemed to have satisfied the participation
                          requirements on the effective date without regard to
                          such Eligible Employee's actual age and/or service.
</TABLE>

            ARTICLE III. 401(k) CONTRIBUTIONS AND ACCOUNT ALLOCATION

A.   ELECTIVE DEFERRALS

If selected below, a Participant's Elective Deferrals will be (select all
applicable):

     [X] (1) a dollar amount or a percentage of Compensation, as specified by
             the Participant on his or her 401(k) Election form, which may not
             exceed 20% of his or her Compensation.

     [ ] (2) with respect to bonuses, such dollar amount or percentage as
             specified by the Participant on his or her 401 (k) Election form
             with respect to such bonus.

B.   MATCHING 401(k) CONTRIBUTIONS

If selected below, the Employer may make Matching 401(k) Contributions for each
Plan Year (select one):

     [ ] (1) Discretionary Formula:

         Discretionary Matching 401(k) Contribution equal to such a dollar
         amount or percentage of Elective Deferrals, as determined by the
         Employer, which shall be allocated (select one):

             [ ] (a)  based on the ratio of each Participant's Elective Deferral
                      for the Plan Year to the total Elective Deferrals of all
                      Participants for the Plan Year. If inserted, Matching
                      401(k) Contributions shall be subject to a maximum amount
                      of $______ for each Participant or ______% of each
                      Participant's Compensation.

                                       10
<PAGE>   11

             [ ] (b)  in an amount not to exceed ______% of each Participant's
                      first ______% of Compensation contributed as Elective
                      Deferrals for the Plan Year. If any Matching 401(k)
                      Contribution remains, it is allocated to each such
                      Participant in an amount not to exceed _____% of the next
                      _____% of each Participant's Compensation contributed as
                      Elective Deferrals for the Plan Year.

         Any remaining Matching 401(k) Contribution shall be allocated to each
         such Participant in the ratio that such Participant's Elective
         Deferral for the Plan Year bears to the total Elective Deferrals of
         all such Participants for the Plan Year. If inserted, Matching 401(k)
         Contributions shall be subject to a maximum amount of $______ for each
         Participant or ______% of each Participant's Compensation.

     [ ] (2) Nondiscretionary Formula:

         A nondiscretionary Matching 401(k) Contribution for each Plan Year
         equal to (select one):

             [ ] (a)  ______% of each Participant's Compensation contributed as
                      Elective Deferrals. If inserted, Matching 401(k)
                      Contributions shall be subject to a maximum amount of
                      $______ for each Participant or ______% of each
                      Participant's Compensation.

             [ ] (b)  ______% of the first ______% of the Participant's
                      Compensation contributed as Elective Deferrals and ______%
                      of the next ___% of the Participant's Compensation
                      contributed as Elective Deferrals. If inserted, Matching
                      401(k) Contributions shall be subject to a maximum amount
                      of $_____ for each Participant or ____% of each
                      Participant's Compensation.

C.   PARTICIPANTS ELIGIBLE FOR MATCHING 401(k) CONTRIBUTION ALLOCATION

The following Participants shall be eligible for an allocation to their Matching
401(k) Contributions Account (select all those applicable):

     [ ] (1) Any Participant who makes Elective Deferrals.

     [ ] (2) Any Participant who satisfies those requirements elected by the
             Employer for an allocation to his or her Employer Contributions
             Account as provided in Article IV Section C.

     [ ] (3) Solely with respect to a Plan in which Matching 401(k)
             Contributions are made quarterly (or on any other regular interval
             that is more frequent than annually) any Participant whose 401(k)
             Election is in effect throughout such entire quarter (or other
             interval). ______ (quarterly, monthly or semi-annual)

                                       11
<PAGE>   12

D.   QUALIFIED MATCHING CONTRIBUTIONS

If selected-below, the Employer may make Qualified Matching Contributions for
each Plan Year (select all those applicable):

     (1)  In its discretion, the Employer may make Qualified Matching
          Contributions on behalf of (select one):

          [ ] (a) all Participants who make Elective Deferrals in that Plan
                  Year.

          [ ] (b) only those Participants who are Nonhighly Compensated
                  Employees and who make Elective Deferrals for that Plan Year.

     (2)  Qualified Matching Contributions will be contributed and allocated to
          each Participant in an amount equal to (select one):

          [ ] (a) ______% of the Participant's Compensation contributed as
                  Elective Deferrals. If inserted, Qualified Matching
                  Contributions shall not exceed ______% of the Participant's
                  Compensation.

          [ ] (b) Such an amount, determined by the Employer, which is needed to
                  meet the ACP Test.

     (3)  In its discretion, the Employer may elect to designate all or any part
          of Matching 401(k) Contributions as Qualified Matching Contributions
          that are taken into account as Elective Deferrals -included in the ADP
          Test and excluded from the ACP Test -on behalf of (select one):

          [ ] (a) all Participants who make Elective Deferrals for that Plan
                  Year.

          [ ] (b) Only Participants who are Nonhighly Compensated Employees who
                  make Elective Deferrals for that Plan Year.

E.   QUALIFIED NONELECTIVE CONTRIBUTIONS

If selected below, the Employer may make Qualified Nonelective Contributions for
each Plan Year (select all those applicable):

     (1)  In its discretion, the Employer may make Qualified Nonelective
          Contributions on behalf of (select one):

          [ ] (a) all Eligible Participants.

          [X] (b) only Eligible Participants who are Nonhighly Compensated
                  Employees.

                                       12
<PAGE>   13

     (2)  Qualified Nonelective Contributions will be contributed and allocated
          to each Eligible Participant in an amount equal to (select one):

          [ ] (a) ______% (no more than 15%) of the Compensation of each
              Eligible Participant eligible to share in the allocation.

          [X] (b) Such an amount determined by the Employer, which is needed to
                  meet either the ADP Test or ACP Test.

     (3)  At the discretion of the Employer, as needed and taken into account as
          Elective Deferrals included in the ADP Test on behalf of (select one):

          [ ] (a) all Eligible Participants.

          [X] (b) only those Eligible Participants who are Nonhighly Compensated
                  Employees.

F.   ELECTIVE DEFERRALS USED IN ACP TEST (select one):

     [ ] (1) At the discretion of the Employer, Elective Deferrals may be used
             to satisfy the ACP Test.

     [ ] (2) Elective Deferrals may not be used to satisfy the ACP Test.

G.   MAKING AND MODIFYING A 401(k) ELECTION

An Eligible Employee shall be entitled to increase, decrease or resume his or
her Elective Deferral percentage with the following frequency during the Plan
Year (select one):

         [ ] (1) annually.
         [ ] (2) semi-annually.
         [X] (3) quarterly.
         [ ] (4) monthly
         [ ] (5) other (specify): _____.

         Any such increase, decrease or resumption shall be effective as of the
         first payroll period coincident with or next following the first day
         of each period set forth above. A Participant may completely
         discontinue making Elective Deferrals at any time effective for the
         payroll period after written notice is provided to the Administrator.

                                       13
<PAGE>   14

         ARTICLE IV. PROFIT-SHARING CONTRIBUTIONS AND ACCOUNT ALLOCATION

A.   PROFIT-SHARING CONTRIBUTIONS

If selected below, the following contributions for each Plan Year will be made:

Contributions to Employer Contributions Accounts (select one):

         [X] (a) Such an amount, if any, as determined by the Employer.

         [ ] (b) _____% of each Participant's Compensation.

B.   ALLOCATION OF CONTRIBUTIONS TO EMPLOYER CONTRIBUTIONS ACCOUNTS (select
     one):

         [X] (1) Non-Integrated Allocation

                 The Employer Contributions Account of each Participant eligible
                 to share in the allocation for a Plan Year shall be credited
                 with a portion of the contribution, plus any forfeitures if
                 forfeitures are reallocated to Participants, equal to the ratio
                 that the Participant's Compensation for the Plan Year bears to
                 the Compensation for that Plan Year of all Participants
                 entitled to share in the contribution.

         [ ] (2) Integrated Allocation

                 Contributions to Employer Contributions Accounts with respect
                 to a Plan Year, plus any forfeitures if forfeitures are
                 reallocated to Participants, shall be allocated to the Employer
                 Contributions Account of each eligible Participant as follows:

                 (a)  First, in the ratio that each such eligible Participant's
                      Compensation for the Plan Year bears to the Compensation
                      for that Plan Year of all eligible Participants but not in
                      excess of 3% of each Participant's Compensation.

                 (b)  Second, any remaining contributions and forfeitures will
                      be allocated in the ratio that each eligible Participant's
                      Compensation for the Plan Year in excess of the
                      Integration Level bears to all such Participants' excess
                      Compensation for the Plan Year but not in excess of 3%.

                                       14
<PAGE>   15

                 (c) Third, any remaining contributions and forfeitures will be
                     allocated in the ratio that the sum of each Participant's
                     Compensation and Compensation in excess of the Integration
                     Level bears to the sum of all Participants' Compensation
                     and Compensation in excess of the Integration Level, but
                     not in excess of the Maximum Profit-Sharing Disparity Rate
                     (defined below).

                 (d) Fourth, any remaining contributions or forfeitures will be
                     allocated in the ratio that each Participant's Compensation
                     for that year bears to all Participants' Compensation for
                     that year.

The Maximum Profit-Sharing Disparity Rate is equal to the lesser of:

                 (a) 2.7% or

                 (b) The applicable percentage determined in accordance with the
                     following table:

<TABLE>
<CAPTION>
IF THE INTEGRATION LEVEL IS
(AS A % OF THE TAXABLE WAGE
BASE ("TWB")).                        THE APPLICABLE PERCENTAGE IS:
<S>                                   <C>
20% (or $10,000 if greater)
or less of the TWB                             2.7%

More than 20% (but not less
than $10,001 but not
more than 80% of the TWB                       1.3%

More than 80% but not less
than 100% of the TWB                           2.4%

100% of the TWB                                2.7%
</TABLE>

                                       15
<PAGE>   16

C.   PARTICIPANTS ELIGIBLE FOR EMPLOYER CONTRIBUTION ALLOCATION

The following Participants shall be eligible for an allocation to their Employer
Contributions Account (select all those applicable):

         [ ] (1) Any Participant who was employed during the Plan Year.

         [ ] (2) In the case of a Plan using the hourly record method for
                 determining Vesting Service, any Participant who was credited
                 with a Year of Service during the Plan Year.

         [X] (3) Any Participant who was employed on the last day of the Plan
                 Year.

         [X] (4) Any Participant who was on a leave of absence on the last day
                 of the Plan Year.

         [X] (5) Any Participant who during the Plan Year died or became
                 Disabled while an Employee or terminated employment after
                 attaining Normal Retirement Age.

         [ ] (6) Any Participant who was credited with at least 501 Hours of
                 Service whether or not employed on the last day of the Plan
                 Year.

         [ ] (7) Any Participant who was credited with at least 1,000 Hours of
                 Service and was employed on the last day of the Plan Year.

                         ARTICLE V. THRIFT CONTRIBUTIONS

A.   EMPLOYEE THRIFT CONTRIBUTIONS

If selected below, Employee Thrift Contributions, which are required for
Matching Thrift Contributions, may be made by a Participant in an amount equal
to (select one):

         [ ] (1) A dollar amount or a percentage of the Participant's
                 Compensation which may not be less than ______% nor may not
                 exceed ______% of his or her Compensation.

         [ ] (2) An amount not less than ______% of and not more than ______%
                 of each Participant's Compensation.

                                       16
<PAGE>   17

B.   MAKING AND MODIFYING AN EMPLOYEE THRIFT CONTRIBUTION ELECTION

A Participant shall be entitled to increase, decrease or resume his or her
Employee Thrift Contribution percentage with the following frequency during the
Plan Year (select one):

         [ ] (1) annually
         [ ] (2) semi-annually
         [ ] (3) quarterly
         [ ] (4) monthly
         [ ] (5) other (specify): _____.

Any such increase, decrease or resumption shall be effective as of the first
payroll period coincident with or next following the first day of each period
set forth above. A Participant may completely discontinue making Employee Thrift
Contributions at any time effective for the payroll period after written notice
is provided to the Administrator.

C.   THRIFT MATCHING CONTRIBUTIONS

If selected below, the Employer will make Matching Thrift Contributions for each
Plan Year (select one):

     [ ] (1) Discretionary Formula:

          A discretionary Matching Thrift Contribution equal to such a dollar
          amount or percentage as determined by the Employer, which shall be
          allocated (select one):

         [ ] (a) based on the ratio of each Participant's Employee
                 Thrift Contribution for the Plan Year to the total Employee
                 Thrift Contributions of all Participants for the Plan Year.
                 If inserted, Matching Thrift Contributions shall be subject
                 to a maximum amount of $____ for each Participant or ___% of
                 each Participant's Compensation.

         [ ] (b) in an amount not to exceed _____% of each Participant's first
                 ______% of Compensation contributed as Employee Thrift
                 Contributions for the Plan Year. If any Matching Thrift
                 Contribution remains, it is allocated to each such Participant
                 in an amount not to exceed _____% of the next _____% of each
                 Participant's Compensation contributed as Employee Thrift
                 Contributions for the Plan Year.

     Any remaining Matching Thrift Contribution shall be allocated to each such
     Participant in the ratio that such Participant's Employee Thrift
     Contributions for the Plan Year bears to the total Employee Thrift
     Contributions of all such Participants for the Plan Year. If inserted,
     Matching Thrift Contributions shall be subject to a maximum amount of $____
     for each Participant or _____% of each Participant's Compensation.

                                       17
<PAGE>   18

     [ ] (2) Nondiscretionary Formula:

      A nondiscretionary Matching Thrift Contribution for each Plan Year equal
      to (select one):

         [ ] (a) ______% of each Participant's Compensation contributed as
                 Employee Thrift Contributions. If inserted, Matching Thrift
                 Contributions shall be subject to a maximum amount of $______
                 for each Participant or ______% of each Participant's
                 Compensation.

         [ ] (b) ______% of the first ______% of the Participant's Compensation
                 contributed as Employee Thrift Contributions and ______% of the
                 next ______% of the Participant's Compensation contributed as
                 Employee Thrift Contributions. If inserted, Matching Thrift
                 Contributions shall be subject to a maximum amount of $______
                 for each Participant or ______% of each Participant's
                 Compensation.

D.   QUALIFIED MATCHING CONTRIBUTIONS

If selected below; the Employer may make Qualified Matching Contributions for
each Plan Year (select all those applicable):

         (1) In its discretion, the Employer may make Qualified Matching
             Contributions on behalf of (select one):

             [ ] (a) all Participants who make Employee Thrift Contributions.

             [ ] (b) only those Participants who are Nonhighly Compensated
                     Employees and who make Employee Thrift Contributions.

         (2) Qualified Matching Contributions will be contributed and allocated
             to each Participant in an amount equal to:

             [ ] (a) ______% of the Participant's Employee Thrift Contributions.
                     If inserted, Qualified Matching Contributions shall not
                     exceed ______% of the Participant's Compensation.

             [ ] (b) such an amount, determined by the Employer, which is needed
                     to meet the ACP Test.

                      ARTICLE VI. PARTICIPANT CONTRIBUTIONS

     PARTICIPANT VOLUNTARY NONDEDUCTIBLE CONTRIBUTIONS

     Participant Voluntary Nondeductible Contributions are (select one):

             [ ] (a) permitted.

             [X] (b) not permitted.

                                       18
<PAGE>   19

                              ARTICLE VII. VESTING

A. Employer Contribution Accounts

  (1) A Participant shall have a vested percentage in his or her Profit-Sharing
      Contributions, Matching 401(k) Contributions and/or Matching Thrift
      Contributions, if applicable, in accordance with the following schedule
      (Select one):

<TABLE>
<CAPTION>
MATCHING 401(k)
AND/OR MATCHING         PROFIT-SHARING
THRIFT CONTRIBUTIONS    CONTRIBUTIONS
<S>                     <C>              <C>
      [ ]                   [ ]          (a) 100% vesting immediately upon participation.

      [ ]                   [ ]          (b) 100% after ____ (not more than 5) years of
                                             Vesting Service.

      [X]                   [X]          (c) Graded vesting schedule:

        0%                   20%         after 1 year of Vesting Service;

       20%                   40%         after 2 years of Vesting Service;

       35%                   60%         (not less than 20%) after 3 years of Vesting Service;

       50%                   80%         (not less than 40%) after 4 years of Vesting Service;

       65%                  100%         (not less than 60%) after 5 years of Vesting Service;

       80%                  100%         (not less than 80%) after 6 years of Vesting Service;
</TABLE>

                     100% after 7 years of Vesting Service.

                                       19
<PAGE>   20

      (2) Top Heavy Plan

<TABLE>
<CAPTION>
MATCHING 401(k)
AND/OR MATCHING         PROFIT-SHARING
THRIFT CONTRIBUTIONS    CONTRIBUTIONS
<S>                     <C>              <C>
Vesting Schedule (Select one):

      [ ]                   [ ]          (a) 100% vesting immediately upon participation.

      [ ]                   [ ]          (b) 100% after _____ (not more than 3) years of
                                             Vesting Service.

      [X]                   [X]          (c) Graded vesting schedule:

        0%                   20%         after 1 year of Vesting Service;

       20%                   40%         (not less than 20%) after 2 years of Vesting Service;

       35%                   60%         (not less than 40%) after 3 years of Vesting Service;

       65%                   80%         (not less than 60%) after 4 years of Vesting Service;

       80%                  100%         (not less than 80%) after 5 years of Vesting Service;
</TABLE>

               100% after 6 years of Vesting Service.

Top Heavy Ratio:

    (a) If the adopting Employer maintains or has ever maintained a qualified
        defined benefit plan, for purposes of establishing present value to
        compute the top-heavy ratio, any benefit shall be discounted only for
        mortality and interest based on the following:

              Interest Rate:      8%
              Mortality Table: UP '84

    (b) For purposes of computing the top-heavy ratio, the valuation date shall
        be the last business day of each Plan Year.

                                       20
<PAGE>   21

B. ALLOCATION OF FORFEITURES

      Forfeitures shall be (select one from each applicable column):

<TABLE>
<CAPTION>
MATCHING 401(k)
AND/OR MATCHING          PROFIT-SHARING
THRIFT CONTRIBUTIONS     CONTRIBUTIONS
<S>                      <C>
        [ ]                   [ ] (1) used to reduce Employer contributions for succeeding
                                      Plan Year.
        [X]                   [X] (2) allocated in the succeeding Plan Year in the ratio
                                      which the Compensation of each Participant for the Plan
                                      Year bears to the total Compensation of all Participants
                                      entitled to share in the Contributions. If the Plan is
                                      integrated with Social Security, forfeitures shall be
                                      allocated in accordance with the formula elected by the
                                      Employer.
</TABLE>

C. VESTING SERVICE

For purposes of determining Years of Service for Vesting Service [select (1) or
(2) and/or (3)]:

     [X] (1) All Years of Service shall be included.

     [ ] (2) Years of Service before the Participant attained age 18 shall be
             excluded.

     [ ] (3) Service with the Employer prior to the effective date of the Plan
             shall be excluded.

                ARTICLE VIII. DEFERRAL OF BENEFIT DISTRIBUTIONS,
                        IN-SERVICE WITHDRAWALS AND LOANS

A. DEFERRAL OF BENEFIT DISTRIBUTIONS

<TABLE>
<CAPTION>
    401(k) AND/  PROFIT
    OR THRIFT    SHARING
<S>              <C>
       [ ]         [ ]   If this item is checked, a Participant's vested benefit in his or her
                         Employer Accounts shall be payable as soon as practicable after the
                         earlier of: (1) the date the Participant terminates Employment due to
                         Disability or (2) the end of the Plan Year in which a terminated
                         Participant attains Early Retirement Age, if applicable, or Normal
                         Retirement Age.
</TABLE>

                                       21
<PAGE>   22

B. IN-SERVICE DISTRIBUTIONS

      [X] (1) In-service distributions may be made from any of the
              Participant's vested Accounts, at any time upon or after the
              occurrence of the following events (select all applicable):

              [X] (a) a Participant's attainment of age 59-1/2.
              [X] (b) due to hardships as defined in Section 5.9 of the Plan.

      [ ] (2) In-service distributions are not permitted.

C. LOANS ARE:

<TABLE>
<CAPTION>
401(k) AND/    PROFIT
OR THRIFT      SHARING
<S>            <C>
   [X]           [X] (1) permitted.

   [ ]           [ ] (2) not permitted.
</TABLE>

                             ARTICLE IX. GROUP TRUST

[ ]  If this item is checked, the Employer elects to establish a Group Trust
     consisting of such Plan assets as shall from time to time be transferred to
     the Trustee pursuant to Article X of the Plan. The Trust Fund shall be a
     Group Trust consisting of assets of this Plan plus assets of the following
     plans of the Employer or of an Affiliate: _____________.

                            ARTICLE X. MISCELLANEOUS

A. IDENTIFICATION OF SPONSOR

      The address and telephone number of the Sponsor's authorized
      representative is 800 Scudders Mill Road, Plainsboro, New Jersey 08536;
      (609) 282-2272. This authorized representative can answer inquiries
      regarding the adoption of the Plan, the intended meaning of any Plan
      provisions, and the effect of the opinion letter.

      The Sponsor will inform the adopting Employer of any amendments made to
      the Plan or the discontinuance or abandonment of the Plan.

                                       22
<PAGE>   23

B. PLAN REGISTRATION

    1. Initial Registration

             This Plan must be registered with the Sponsor, Merrill Lynch,
             Pierce, Fenner & Smith Incorporated, in order to be considered a
             Prototype Plan by the Sponsor. Registration is required so that the
             Sponsor is able to provide the Administrator with documents, forms
             and announcements relating to the administration of the Plan and
             with Plan amendments and other documents, all of which relate to
             administering the Plan in accordance with applicable law and
             maintaining compliance of the Plan with the law.

             The Employer must complete and sign the Adoption Agreement. Upon
             receipt of the Adoption Agreement, the Plan will be registered as a
             Prototype Plan of Merrill Lynch, Pierce, Fenner & Smith
             Incorporated. The Adoption Agreement will be countersigned by an
             authorized representative and a copy of the countersigned Adoption
             Agreement will be returned to the Employer.

    2. Registration Renewal

             Annual registration renewal is required in order for the Employer
             to continue to receive any and all necessary updating documents.
             There is an annual registration renewal fee in the amount set forth
             with the initial registration material. The adopting Employer
             authorizes Merrill Lynch, Pierce, Fenner & Smith Incorporated, to
             debit the account established for the Plan for payment of agreed
             upon annual fee; provided, however, if the assets of an account are
             invested solely in Participant-Directed Assets, a notice for this
             annual fee will be sent to the Employer annually. The Sponsor
             reserves the right to change this fee from time to time and will
             provide written notice in advance of any change.

C. PROTOTYPE REPLACEMENT PLAN

      This Adoption Agreement is a replacement prototype plan for the (1)
      Merrill Lynch Special Prototype Defined Contribution Plan and Trust -
      401(k) Plan #03-004 and (2) Merrill Lynch Asset Management, Inc., Special
      Prototype Defined Contribution Plan and Trust - 401(k) Plan Adoption
      Agreement #03-004.

D. RELIANCE

      The adopting Employer may not rely on the opinion letter issued by the
      National Office of the Internal Revenue Service as evidence that this Plan
      is qualified under Code Section 401. In order to obtain reliance, the
      Employer must apply to the appropriate Key District Director of the
      Internal Revenue Service for a determination letter with respect to the
      Plan.

                                       23
<PAGE>   24

                              EMPLOYER'S SIGNATURE

Name of Employer:     THE GOOD GUYS-CALIFORNIA, INC.
                  ----------------------------------------     (X)

         By:   /s/  Robert A. Stoffregen  CFO
            ----------------------------------------------     (X)
                      Authorized Signature

                       Robert A. Stoffregen
            ----------------------------------------------     (X)
                            Print Name

             Vice President, Finance & Chief Fin. Officer      (X)
            ----------------------------------------------
                              Title

DATED:      March 23, 2001,   19         (X)
       ----------------------    ----

TO BE COMPLETED BY MERRILL LYNCH:

SPONSOR ACCEPTANCE:

Subject to the terms and conditions of the Prototype Plan and this Adoption
Agreement, this Adoption Agreement is accepted by Merrill Lynch, Pierce, Fenner
& Smith Incorporated as the Prototype Sponsor.

Authorized
Signature:
           ---------------------------------------------------

                                       24
<PAGE>   25

                              TRUSTEE(S) SIGNATURE

This Trustee Acceptance is to be completed only if the Employer appoints one or
more Trustees and does not appoint a Merrill Lynch Trust Company as Trustee.

The undersigned hereby accept all of the terms, conditions, and obligations of
appointment as Trustee under the Plan. If the Employer has elected a Group Trust
in this Adoption Agreement, the undersigned Trustee(s) shall be the Trustee(s)
of the Group Trust.

                                   AS TRUSTEE:

-------------------------------        ----------------------------------    (X)
          (Signature)                         (print or type name)

-------------------------------        ----------------------------------    (X)
          (Signature)                         (print or type name)

-------------------------------        ----------------------------------    (X)
          (Signature)                         (print or type name)

-------------------------------        ----------------------------------    (X)
          (Signature)                         (print or type name)

-------------------------------        ----------------------------------    (X)
          (Signature)                         (print or type name)

-------------------------------        ----------------------------------    (X)
          (Signature)                         (print or type name)

DATED:                              , 19
       -----------------------------     -----    (X)

                                       25
<PAGE>   26

                  THE MERRILL LYNCH TRUST COMPANIES AS TRUSTEE

This Trustee Acceptance and designation of Investment Committee are to be
completed only when a Merrill Lynch Trust Company is appointed as Trustee.

TO BE COMPLETED BY THE EMPLOYER:

                       DESIGNATION OF INVESTMENT COMMITTEE

The Investment Committee for the Plan is (print or type names):

Name:                  Ronald A. Unkefer, Founder, Chairman & CEO
      --------------------------------------------------------------------------

Name:                  Kenneth R. Weller, President
      --------------------------------------------------------------------------

Name:                  Cathy A. Stauffer, Vice President, Merchandising
      --------------------------------------------------------------------------

Name:                  George J. Hechtman, Vice President, Administration
      --------------------------------------------------------------------------

Name:
      --------------------------------------------------------------------------

Name:
      --------------------------------------------------------------------------

TO BE COMPLETED BY MERRILL LYNCH TRUST COMPANY:

                             ACCEPTANCE BY TRUSTEE:

The undersigned hereby accept all of the terms, conditions, and obligations of
appointment as Trustee under the Plan. If the Employer has elected a Group Trust
in this Adoption Agreement, the undersigned Trustee(s) shall be the Trustee(s)
of the Group Trust.

SEAL                        MERRILL LYNCH TRUST COMPANY [___________________]

                                       By: _________________________________

DATED: ______________, 19___

                                       26
<PAGE>   27

            THE MERRILL LYNCH TRUST COMPANIES AS ONE OF THE TRUSTEES

      This Trustee Acceptance is to be completed only if, in addition to a
      Merrill Lynch Trust Companies as Trustee, the Employer appoints an
      additional Trustee of a second trust fund.

      The undersigned hereby accept all of the terms, conditions, and
      obligations of appointment as Trustee under the Plan. If the Employer has
      elected a Group Trust in this Adoption Agreement, the undersigned
      Trustee(s) shall be the Trustee(s) of the Group Trust.

                                                  AS TRUSTEE

___________________________________          ________________________________
            (Signature)                            (print or type name)

DATED: ___________________, 19___

SEAL                       MERRILL LYNCH TRUST COMPANY [____________________]

                                           By: _______________________________

DATED: ___________________, 19___

DESIGNATION OF INVESTMENT COMMITTEE

The Investment Committee for the Plan is (print or type names):

Name: __________________________________________________________________________

Name: __________________________________________________________________________

Name: __________________________________________________________________________

Name: __________________________________________________________________________

                                       27
<PAGE>   28

                                   ADDENDUM A

   ADDENDUM TO THE GOOD GUYS DEFERRED PAY AND PROFIT-SHARING PLAN PURSUANT TO
                           SECTION 11.2.1 OF THE PLAN

    411(d)(6) PROTECTED BENEFITS ATTACHMENT TO THE GOOD GUYS DEFERRED PAY AND
                               PROFIT-SHARING PLAN

Pursuant to Section 11.2.1(D) of the Base Plan Document #03, any Participant
who was a participant in The Good Guys Profit-Sharing Plan, (the "Profit-Sharing
Plan") shall not have the following "Withdrawal" provision eliminated or altered
as it pertains to participant account balances as of April 30, 2001. Each
Participant who is 100% vested in his or her Profit-Sharing Plan Accounts may
annually withdraw all or a portion of the balances in such Accounts (other than
any portion of his or her Profit-Sharing Plan Accounts attributable to Matching
Contributions).

                                VESTING SCHEDULE

The vesting schedule applicable to contributions and forfeitures under the
Profit-Sharing Plan allocated before the Effective Date of Restatement, as set
out in Addendum B, shall continue in effect for such contribution and
forfeitures, subject to Section 11.2.1(E) of the Base Plan Document #03.

<PAGE>   29

                                   ADDENDUM B

            ADDENDUM TO THE GOOD GUYS DEFERRED PAY AND PROFIT-SHARING

<TABLE>
<CAPTION>
       CONTRIBUTION                                  VESTING SCHEDULE
       ------------                                  ----------------
<S>                                                  <C>
-   Profit-Sharing Contributions and
    Forfeitures allocated for Plan Years ending
    On or before September 30, 1999                       7 years

-   Matching Contributions for the period
    January 1, 1998 to September 30, 1999                 7 years

-   Forfeitures (and Discretionary
    Contributions) allocated for Plan Years
    Beginning on or after October 1, 1999                 5 years
</TABLE>

<TABLE>
<CAPTION>
      7 YEAR SCHEDULE                                5 YEAR SCHEDULE
      ---------------                                ---------------
<S>                   <C>                       <C>                   <C>
0-2 Years             0%                        0-1 Year              0%
2 Years               20%                       1 Year                20%
3 Years               35%                       2 Years               40%
4 Years               50%                       3 Years               60%
5 Years               65%                       4 Years               80%
6 Years               80%                       5 Years               100%
7 Years               100%
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}]]