Document:

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EXHIBIT 10.15

                    STOCK AND WARRANT SUBSCRIPTION AGREEMENT

     This Stock and Warrant Subscription Agreement (the "AGREEMENT") is made and
entered into as of the 15th day of August, 2000 (the "EFFECTIVE DATE"), by and
between The Good Guys, Inc., a Delaware corporation ("COMPANY"), and Kenneth
Weller ("EXECUTIVE").

                             PRELIMINARY STATEMENTS

     A. Executive has entered into an Employment Agreement with Company which
provides, as part of Executive's compensation package, certain special stock
purchase rights.

     B. As part of Executive's special stock purchase rights, Executive has been
offered the opportunity to purchase for cash up to 500,000 shares of restricted
stock of the Company (the "COMMON SHARES").

     C. In conjunction therewith, Executive has also been granted the right to
receive 50% warrant coverage for the Common Shares purchased before September 1,
2000, exercisable within three (3) years of the Effective Date on the terms
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. Executive hereby subscribes for 500,000 Common
     Shares. Upon purchase of the shares by Executive, Company will cause one or
     more certificates evidencing the Common Shares to be issued to and
     registered in the name of the Executive.

         (b) Warrant. Executive hereby subscribes for the Company's Warrant
     coverage pursuant to the Common Stock Purchase Warrant attached hereto as
     Exhibit A.

     2. Consideration. In consideration for the subscription for the Common
Shares and the Warrant, Executive has agreed to pay to Company, by wire transfer
the fair market value per share of the Common Shares as of August 16, 2000
(based upon the closing price of such stock on the Nasdaq National Market on
that date).

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     3. Representations and Warranties of Executive. Executive hereby represents
and warrants to Company as follows:

         (a) Authorization. This Agreement constitutes a valid and legally
     binding obligation of Executive, 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. Executive
     represents that he has full power and authority to enter into this
     Agreement.

         (b) Access to Information. Executive has had an opportunity to receive
     and review all documents and information that he considers material to his
     purchase of the Common Shares and to ask questions of and receive
     satisfactory answers from Company, concerning Company 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 Executive.

         (c) Knowledgeable Investor. Executive 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. Executive is an "accredited investor" within
     the meaning of Regulation D promulgated under the Securities Act.

         (e) Investment Intent. Executive 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"). Executive is purchasing the
     Common Shares and the Warrant for investment, for his own account, and with
     no present intention of reselling, directly or indirectly participating in
     any distribution of or otherwise disposing of the Common Shares. Executive
     understands that the Common Shares are subject to restrictions on transfer
     and that Executive may bear the economic risk of purchasing the Common
     Shares for an indefinite period of time.

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

         (g) Legend. Executive 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 EFFECTIVE REGISTRATION STATEMENT WITH RESPECT

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         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. Executive 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 Company is relying upon the
     truth and accuracy of the representations, warranties, agreements,
     acknowledgements and understandings of Executive set forth herein in order
     to determine the applicability of such provisions;

     4. Representations and Warranties of Company. Company hereby represents and
warrants to Executive as follows:

         (a) Organization. Company 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 Company;

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

         (c) Authorization. This Agreement has been duly authorized, validly
     executed and delivered on behalf of Company and is a valid and binding
     agreement of Company 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 Company 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 Company'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 the Company 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 Company, 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 Company pursuant
     to the terms of

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     any agreement or instrument to which Company is a party or by which Company
     may be bound or to which any of Company's property or Company 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 Company's knowledge, threatened, against or affecting Company, 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
     Company.

     5. 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. Executive shall furnish to Company and Company
     shall be entitled to rely upon an opinion of competent securities counsel
     acceptable to Company with respect to compliance with the above laws.

         (b) Integration. This Agreement, together with the Exhibit 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 Executive and his payment
     therefor.

         (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.

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         (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.

     6. Employment Agreement Provisions Executive is executing this document in
connection with his employment by the Company as provided in that Executive
Employment Agreement entered into effective on August 15, 2000 between Executive
and the Company. The terms of the Executive Employment Agreement shall govern in
the event of any inconsistency or ambiguity between the documents.

                            [SIGNATURE PAGE FOLLOWS]

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

                                   THE GOOD GUYS, INC.

                                   By: /s/ Ronald A. Unkefer
                                      ----------------------------------
                                   Name: Ronald A. Unkefer
                                   Title: Chief Executive Officer

                                   KENNETH WELLER

                                   By: /s/ Kenneth Weller
                                      ----------------------------------
                                   Name:  Kenneth Weller
                                   Title:  President

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                                    EXHIBIT A

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, 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 AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
SUCH AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

No. _____________

                        WARRANT TO PURCHASE COMMON STOCK

                                       OF

                               THE GOOD GUYS, INC.

     This certifies that, beginning on the date of this Warrant, for value
received, Kenneth Weller ("BUYER"), or registered assigns (the "HOLDER"), is
entitled to purchase from The Good Guys, Inc., a Delaware corporation (the
"COMPANY"), shares of the Common Stock of the Company (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, 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 on the
Effective Date of that certain Stock and Warrant Subscription Agreement by and
among Buyer and Company and ending three (3) years from the date thereof.
Subject to the notice requirements of Section 10 hereof, after such date, this
Warrant shall be void.

     2. Number of Shares Which May Be Purchased. This Warrant may be exercised
to purchase Two Hundred Fifty Thousand (250,000) shares of the Company's Common
Stock as adjusted from time to time pursuant to Section 12 hereof.

     3. Exercise Price. The purchase price per share for the Common Stock
purchased under this Warrant (the "EXERCISE PRICE") shall be the fair market
value per share of the Company's Common Stock as of August 16, 2000 based upon
the closing price of such stock on the Nasdaq National Market on that date, or
as adjusted from time to time pursuant to Section 12 hereof.

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    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 a Notice of Exercise 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 until this Warrant is
exercised in the manner provided pursuant to Section 4 hereof.

     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

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     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, as amended (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.

               (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, AS AMENDED, 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

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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) Not less than thirty (30) days nor more than sixty (60) days prior
     to the expiration of the Warrant as provided in Section 1 hereof, the
     Company shall give written notice to the Holder of such pending expiration.

         (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 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

              (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.

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         (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) 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

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     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
     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.

     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.

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         (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:                     Kenneth Weller
                                           5021 Vernon Avenue PMB #199
                                           Edina, MN 55436

         if to Company:                    The Good Guys, Inc.
                                           7000 Marina Boulevard
                                           Brisbane, California  94005-1840

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

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

Dated:  _________________              THE GOOD GUYS, INC.

                                       By: ________________________________

                                       Name:_______________________________

                                       Date:_______________________________

                                        7<PAGE>   1
EXHIBIT 10.16

                      STOCK AND WARRANT PURCHASE AGREEMENT

                                 by and between

                               THE GOOD GUYS, INC.

                                       and

                       THE PURCHASERS LISTED ON SCHEDULE A

                           Dated as of August 16, 2000

<PAGE>   2

                      STOCK AND WARRANT PURCHASE AGREEMENT

            This Stock and Warrant Purchase Agreement (this "Agreement") is
dated as of August 16, 2000 between The Good Guys, Inc., a Delaware corporation
(the "Company"), and The Purchasers Listed On Schedule A (the "Purchasers"). The
Company and the Purchasers may hereinafter be referred to collectively as the
"Parties" or individually as a "Party." Except as otherwise indicated herein,
capitalized terms used herein are defined in Appendix A.

                             PRELIMINARY STATEMENTS

            A. The Company wishes the Purchasers to make an equity investment in
the Company.

            B. The Company and the Purchasers desire to enter into an agreement
pursuant to which the Purchasers will purchase from the Company, and the Company
will sell to the Purchasers, the restricted common stock and the warrants
described herein.

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

                             STATEMENT OF AGREEMENT

                                    ARTICLE I
                        ISSUANCE AND PURCHASE OF SHARES.

            1.1 Issuance and Purchase of Common Stock. Subject to the terms and
conditions of this Agreement, the Company shall sell to the Purchasers, and the
Purchasers shall purchase from the Company, 1,517,647 shares (the "Shares") of
the Company's common stock, par value $.001 per share, together with warrants to
purchase 758,822 shares of Common Stock in the form attached hereto as Exhibit A
(the "Warrants") for an aggregate purchase price of $7,042,792.66 (the "Purchase
Price").

            1.2 Settlement. The settlement of the transactions contemplated
herein (the "Settlement") shall take place at the offices of Howard, Rice,
Nemerovski, Canady, Falk & Rabkin, Three Embarcadero Center, 7th Floor, San
Francisco, California 94111 at 10:00 a.m. on or before August 22, 2000, or such
other time, date or place as the Parties may mutually agree (the "Settlement

                                      -1-
<PAGE>   3

Date"). At the Settlement, (a) Purchasers shall pay to the Company, by wire
transfer of immediately available funds to such account or accounts designated
in writing by the Company or by a promissory note in form and substance
satisfactory to the Company, the Purchase Price; (b) the Company shall issue to
Purchasers the Shares and deliver to Purchasers certificates for the Shares duly
registered in the name of Purchasers; and (c) the Company shall deliver the
Warrants, registered in the name of the Purchasers or such other names as may be
designated by Purchasers.

                                   ARTICLE II
                        RESTRICTIONS ON TRANSFERABILITY.

            The Shares shall not be transferred before satisfaction of the
conditions specified in this Article II, which conditions are intended to ensure
compliance with the provisions of the Securities Act and applicable state
securities laws with respect to the transfer of any Shares. Purchasers, by
entering into this Agreement and accepting the Shares, agree to be bound by the
provisions of this Article II.

            2.1 Restrictive Legend. Except as otherwise provided in this Article
II, each certificate representing Shares and Warrant Shares (together the
"Restricted Common Stock") shall be stamped or otherwise imprinted with a legend
in substantially the following form:

            "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
            REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
            "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY
            NOT BE SOLD OR OTHERWISE TRANSFERRED, UNLESS AN EXEMPTION FROM
            REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE SECURITIES
            LAWS, OR ANY RULE OR REGULATION PROMULGATED THEREUNDER, IS
            AVAILABLE. SUCH SECURITIES ARE SUBJECT TO THE RESTRICTIONS AND
            PRIVILEGES SPECIFIED IN THE STOCK PURCHASE AGREEMENT, DATED AS OF
            AUGUST 16, 2000, BETWEEN THE GOOD GUYS, INC. AND THE PURCHASERS
            LISTED ON SCHEDULE A THERETO, A COPY OF WHICH IS ON FILE WITH THE
            SECRETARY OF THE GOOD GUYS, INC. AND WILL BE FURNISHED WITHOUT
            CHARGE TO THE

                                      -2-
<PAGE>   4

            HOLDER HEREOF UPON WRITTEN REQUEST, THE HOLDER OF THIS CERTIFICATE
            AGREES TO BE BOUND BY THE TERMS AND CONDITIONS OF SUCH STOCK
            PURCHASE AGREEMENT."

            2.2 Transfers. Each Holder agrees that it will not sell, transfer or
otherwise dispose of any shares of Restricted Common Stock, in whole or in part,
except pursuant to an effective registration statement under the Securities Act
or an exemption from registration thereunder. Each certificate, if any,
evidencing such shares of Restricted Common Stock issued upon such transfer
shall bear the restrictive legend set forth in Section 2.1, unless in the
written opinion of the transferee's or Holder's counsel delivered to the Company
in connection with such transfer (which opinion shall be reasonably satisfactory
to the Company) such legend is not required in order to ensure compliance with
the Securities Act.

            2.3 Termination of Restrictions. The restrictions imposed by this
Article II upon the transferability of the Restricted Common Stock and the
legend requirement of Section 2.1 shall terminate as to any particular Share or
Warrant Share (i) when and so long as such security shall have been registered
under the Securities Act and disposed of pursuant thereto, or (ii) when the
Holder thereof shall have delivered to the Company the written opinion of
counsel to such Holder, which opinion shall be reasonably satisfactory to the
Company, stating that such legend is not required in order to ensure compliance
with the Securities Act. Whenever the restrictions imposed by this Article II
shall terminate as to any Restricted Common Stock, as herein above provided, the
Holder thereof shall be entitled to receive from the Company, at the expense of
the Company, a new certificate representing such Common Stock, not bearing the
restrictive legend set forth in Section 2.1.

                                   ARTICLE III
                      REPRESENTATIONS AND WARRANTIES OF THE
                                    COMPANY.

            As a material inducement to Purchasers entering into this Agreement
and purchasing the Shares and Warrants, the Company represents and warrants to
Purchasers as follows:

            3.1 Corporate Status. The Company is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware. The Company has all requisite corporate power and authority to own
or lease, as the case may be, its properties and to carry on its business as now

                                      -3-
<PAGE>   5

conducted. The Company and its Subsidiaries are qualified or licensed to conduct
business in all jurisdictions where its or their ownership or lease of property
and the conduct of its or their business requires such qualification or
licensing, except to the extent that failure to so qualify or be licensed would
not have a Material Adverse Effect on the Company. There is no pending, or to
the knowledge of the Company threatened, proceeding for the dissolution,
liquidation or insolvency of the Company or any of its Subsidiaries.

            3.2 Corporate Power and Authority. The Company has the corporate
power and authority to execute and deliver this Agreement and the Warrants, to
perform its obligations hereunder and thereunder and consummate the transactions
contemplated hereby and thereby. The Company has taken all necessary corporate
action to authorize the execution, delivery and performance of this Agreement
and the Warrants and the transactions contemplated hereby and thereby.

            3.3 Enforceability. Each of this Agreement and the Warrants has been
duly executed and delivered by the Company and constitutes a legal, valid and
binding obligation of the Company, enforceable against the Company in accordance
with its terms, except as the same may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and general equitable principles regardless of
whether such enforceability is considered in a proceeding at law or in equity.

            3.4 No Violation. The execution and delivery by the Company of each
of this Agreement and the Warrants, the consummation of the transactions
contemplated hereby and thereby, and the compliance by the Company with the
terms and provisions hereof and thereof, will not (a) result in a violation or
breach of, or constitute, with the giving of notice or lapse of time, or both, a
material default (or give rise to any right of termination, cancellation or
acceleration) under, any of the terms, conditions or provisions of any Contract
to which the Company or any of its Subsidiaries is a party or by which the
Company or any of its Subsidiaries or any material portion of the Company's or
its Subsidiaries' properties or assets may be bound, (b) violate any Requirement
of Law applicable to the Company or any of its Subsidiaries or any material
portion of the Company's properties or assets or (c) result in the imposition of
any Lien upon any of the properties or assets of the Company or any of its
Subsidiaries; except where any of the foregoing would not have a Material
Adverse Effect on the Company.

                                      -4-
<PAGE>   6

            3.5 Consents/Approvals. No consent, approval, waiver or other action
by any Person under any Contract to which either the Company or any of its
Subsidiaries is a party, or by which any of their respective properties or
assets are bound, is required or necessary for the execution, delivery or
performance by the Company of this Agreement or the Warrants and the
consummation of the transactions contemplated hereby, except where the failure
to obtain such consents, filings, authorizations, approvals or waivers or make
such filings would not have a Material Adverse Effect on the Company.

            3.6 Capitalization. The authorized capital stock of the Company
consists of 40,000,000 shares of Common Stock and 2,000,000 shares of Preferred
Stock. As of August 15, 2000, the Company had outstanding 20,653,787 shares of
Common Stock, all of which were duly authorized, validly issued, fully paid and
non-assessable and had no outstanding shares of Preferred Stock. Except (a) as
contemplated by this Agreement, (b) the Warrants, (c) options to acquire
1,357,882 shares of Common Stock under the Company's option plans, (d) warrants
to acquire 3,257,901 shares of Common Stock, and (e) as set forth in the
Company's SEC Reports, there are (y) no rights, options, warrants, convertible
securities, subscription rights or other agreements, calls, plans, contracts or
commitments of any kind relating to the issued and unissued capital stock of, or
other equity interest in, the Company outstanding or authorized and (z) no
contractual obligations of the Company to repurchase, redeem or otherwise
acquire any shares of the Company Common Stock. Upon delivery to the Purchasers
of the certificates representing the Shares and payment of the Purchase Price,
the Purchasers will acquire good, valid and marketable title, subject to the
limitations on marketability contained in this Agreement or imposed pursuant to
the Securities Act, to and beneficial and record ownership of the Shares, and
the Shares will be validly issued, fully paid and non-assessable. The Company
has duly reserved, solely for purposes of issuance upon exercise of the
Warrants, the shares of Common Stock issuable upon exercise of the Warrants.

            3.7 SEC Reports and Nasdaq Eligibility. Since September 30, 1998,
the Company has made all filings (the "SEC Reports") required to be made by it
under the Securities Act of 1933 (the Securities Act") and the Securities
Exchange Act of 1934, (the "Exchange Act"). The SEC Reports, when filed,
complied in all material respects with all applicable requirements of the
Securities Act and the Exchange Act and the securities laws, rules and
regulations of any state and pursuant to any Requirements of Law. The SEC
Reports, when filed, did not contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in
order to make the statements made therein, in light of the circumstances under
which they were made, not misleading. The Company has delivered or made
accessible to Purchasers true, accurate and

                                      -5-
<PAGE>   7

complete copies of the SEC Reports which were filed with the SEC since September
30, 1998. The Company's Common Stock is currently eligible for trading on the
Nasdaq National Market.

            3.8 Financial Statements. Each of the balance sheets included in the
SEC Reports (including any related notes and schedules) fairly presents in all
material respects the consolidated financial position of the Company and its
Subsidiaries as of its date, and each of the other financial statements included
in the SEC Reports (including any related notes and schedules) fairly presents
in all material respects the consolidated results of operations or other
information therein of the Company and its Subsidiaries for the periods or as of
the dates therein set forth in accordance with GAAP consistently applied during
the periods involved (except that the interim reports are subject to normal
recording adjustments which might be required as a result of year-end audit and
except as otherwise stated therein).

            3.9 Undisclosed Liabilities. As of August 14, 2000, except for
liabilities and losses incurred in the ordinary course of business since June
30, 2000, the Company and its Subsidiaries do not have any material direct or
indirect indebtedness, liability, loss, or obligation of a kind required by GAAP
to be set forth on a financial statement, that were not fully and adequately
reflected or reserved for in the financial statements contained in the Company's
Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2000 or
otherwise disclosed in the SEC Reports.

            3.10 Company Business. The description of the Company's business
contained in the Company's Annual Report on Form 10-K for the fiscal year ended
September 30, 1999 is not materially inconsistent with its current operations.
Except as set forth in the SEC Reports, since June 30, 2000 there has not been
(i) any direct or indirect redemption, purchase or other acquisition by the
Company of any shares of the Common Stock or (ii) declaration, setting aside or
payment of any dividend or other distribution by the Company with respect of the
Common Stock.

            3.11 Investment Company. The Company is not and after giving effect
to the sale of the Shares and Warrant Shares will not be an "investment company"
or an entity "controlled" by an "investment company" as such terms are defined
in the Investment Company Act of 1940, as amended.

            3.12 No Commissions. The Company has not incurred any obligation for
any finder's or broker's or agent's fees or commissions in connection with the
purchase of the Shares.

                                      -6-
<PAGE>   8

                                   ARTICLE IV
                  REPRESENTATIONS AND WARRANTIES OF PURCHASERS.

            As a material inducement to the Company entering into this Agreement
and issuing and/or selling the Warrants and/or the Shares, each Purchaser
represents and warrants to the Company as follows:

            4.1 Investment Intent. The Purchaser is acquiring the Shares and
Warrants hereunder and under the Warrant for the Purchaser's own account and
with no present intention of distributing or selling the Shares or Warrants or
any interest in the Shares or Warrants. The Purchaser agrees that it will not
sell or otherwise dispose of any of the Shares or Warrants or any interest in
the Shares or Warrants unless such sale or other disposition has been registered
or qualified (as applicable) under the Securities Act and applicable state
securities laws or, in the opinion of the Purchaser's counsel delivered to the
Company (which opinion shall be reasonably satisfactory to the Company) such
sale or other disposition is exempt from registration or qualification under the
Securities Act and applicable state securities laws. The Purchaser understands
that the sale of the Shares and Warrants acquired by the Purchaser hereunder has
not been registered under the Securities Act, but the Shares and Warrants are
issued through transactions exempt from the registration and prospectus delivery
requirements of Section 4(2) of the Securities Act, and that the reliance of the
Company on such exemption from registration is predicated in part on these
representations and warranties of the Purchaser. The Purchaser acknowledges that
a restrictive legend consistent with the foregoing has been or will be placed on
the certificates representing the Shares and the Warrants until such legend is
permitted to be removed under applicable law. The Purchaser will have no right
to require registration of the Shares and the common stock underlying the
Warrants, and the Company is under no obligation to cause an exemption to be
available, except as provided in the Registration Rights Agreement attached as
Exhibit B hereto.

            4.2 Adequate Information. The Company has made available and the
Purchaser has reviewed such information that the Purchaser considers necessary
or appropriate to evaluate the risks and merits of an investment in the Shares
(including, without limitation, the Company's Form 10-K for the fiscal year
ended September 30, 1999 and Form 10-Qs for the quarterly periods ended December
31, 1999, March 31, 2000 and June 30, 2000.

            4.3 Opportunity to Question and Other Information. The Purchaser has
had the opportunity to question, and, to the extent deemed necessary or
appropriate, has questioned representatives of the Company so as to receive

                                      -7-
<PAGE>   9

answers and verify information obtained in the Purchaser's examination of the
Company, including the information that the Purchaser has reviewed in relation
to its investment in the Shares and Warrants. The Purchaser has been afforded
the opportunity to obtain, and has been furnished, all material that it has
requested relating to the proposed operation of the Company, any other matters
relating to the business and properties of the Company and the offering and sale
of the Shares and Warrants.

            4.4 No Other Representations. No oral or written representations
have been made to the Purchaser in connection with the Purchaser's acquisition
of the Shares and Warrants which were in any way inconsistent with the
information reviewed by the Purchaser. The Purchaser acknowledges that no
representations or warranties of any type or description have been made to it by
any Person with regard to the Company, any of its Subsidiaries, any of their
respective businesses, properties or prospectus or the investment contemplated
herein, other than the representations and warranties set forth in Article III
hereof. The Purchaser has not made its decision to acquire Shares and Warrants
or to execute and deliver this Agreement on the basis of any belief that any
officer, director or affiliate of the Company or any current stockholder of the
Company would make an investment in the Company now or in the future.

            4.5 Knowledge and Experience. The Purchaser is an accredited
investor as such term is defined in Rule 501 under the Securities Act. The
Purchaser has such knowledge and experience in financial, tax and business
matters, including substantial experience in evaluating and investing in common
stock and other securities (including the common stock and other securities of
new and speculative companies), so as to enable the Purchaser to utilize the
information made available to the Purchaser in order to evaluate the merits and
risks of an investment in the Shares and Warrants and to make an informed
investment decision with respect thereto.

            4.6 Additional Representations. Each Purchaser will make such
additional representations and warranties and furnish such information regarding
the Purchaser's investment experience and financial position as the Company may
reasonably require, and if there should be any material change in the
information set forth herein or in the Purchaser Suitability Questionnaire prior
to the closing of the sale of the Common Stock, the Purchaser will immediately
furnish such revised or corrected information to the Company.

            4.7 Legal Existence and Authority. If the Purchaser is a
corporation, partnership, limited liability company, trust or other entity, the
Purchaser has been duly formed and is validly existing and in good standing
under

                                      -8-
<PAGE>   10

the laws of the jurisdiction of its formation with full power and authority to
acquire and hold the Shares and Warrants and to execute, deliver and comply with
the terms of this Agreement and such other documents required to be executed and
delivered by the undersigned in connection with this subscription.

            4.8 No Defaults or Conflicts. The execution and delivery of this
Agreement by the Purchaser and the performance of its obligations hereunder does
not conflict with or constitute a default under any instruments governing the
Purchaser, or any law, regulation, order or agreement to which the Purchaser is
a party or to which the undersigned is bound.

            4.9 Validity: Enforceability: Binding Effect. This Agreement and the
Registration Rights Agreement delivered herewith have been duly and validly
authorized, executed and delivered by the Purchaser, and the agreements herein
and therein constitute valid, binding and enforceable agreements of the
Purchaser. The Purchaser is not a partnership, common trust fund, special trust,
pension fund, retirement plan or other entity in which the partners or
participants, as the case may be, may designate the particular investments to be
made or the allocation thereof.

            4.10 Confidentiality. Unless required by law, the Purchaser shall
not disclose, and shall maintain confidential any non-public information related
to the Company, provided that the undersigned may disclose such information to
any of its advisors, attorneys arid accountants, if such advisor, attorney
and/or accountant shall have agreed to be bound by this provision.

                                    ARTICLE V
                                   COVENANTS.

            5.1 Filings. Each of the Company and the Purchasers shall make on a
prompt and timely basis all governmental or regulatory notifications and filings
required to be made by it for the consummation of the transactions contemplated
hereby.

            5.2 Further Assurances. Each of the Company and the Purchasers shall
execute and deliver such additional instruments and other documents and shall
take such further actions as may be necessary or appropriate to effectuate,
carry out and comply with all of the terms of this Agreement and the
transactions contemplated hereby.

                                      -9-
<PAGE>   11

            5.3 Cooperation. Each of the Company and the Purchasers agree to
cooperate with the other in the preparation and filing of all forms,
notifications, reports and information, if any, required or reasonably deemed
advisable pursuant to any Requirement of Law in connection with the transactions
contemplated by this Agreement and to use their respective best efforts to agree
jointly on a method to overcome any objections by any Governmental Authority to
any such transactions; provided that, any reasonable, out-of-pocket expenses
incurred by the Purchasers shall be reimbursed by the Company. Except as may be
specifically required hereunder, none of the Parties or their respective
Affiliates shall be required to agree to take any action that in the reasonable
opinion of such Party would result in or produce a Material Adverse Effect on
such Party.

            5.4 Notification of Certain Matters. Each of the Company and the
Purchasers shall give prompt notice to the other of the occurrence, or
non-occurrence, of any event which would be likely to cause any representation
or warranty herein to be untrue or inaccurate, or any covenant, condition or
agreement herein not to be complied with or satisfied.

            5.5 Share Maintenance. The Company covenants and agrees that (a) all
Warrant Shares, upon issuance in accordance with the terms thereof, and the
payment of the purchase price therefor, will be duly authorized, validly issued
and outstanding, fully paid and nonassessable, and free from all taxes, liens
and charges with respect to the issuance thereof other than those created by or
arising through the Purchasers, and all such Warrant Shares shall be sold to the
Purchasers pursuant to an exemption from registration under the Securities Act
or an effective registration statement, (b) the Company will from time to time
take all actions necessary to assure that the par value per share of the Common
Stock is at all times equal to or less than the applicable Warrant Price, and
(c) the Company will at all times during the exercise period have authorized and
reserved sufficient shares of Common Stock to provide for the exercise of the
Warrants in full.

                                   ARTICLE VI
                                INDEMNIFICATION.

            6.1 Indemnification Generally. The Company, on the one hand, and the
Purchasers, on the other hand, shall indemnify the other from and against any
and all losses, damages, liabilities, claims, charges, actions, proceedings,
demands, judgments, settlement costs and expenses of any nature whatsoever
(including, without limitation, attorneys' fees and expenses) or deficiencies
resulting from any breach of a representation, warranty or covenant by the
Indemnifying Party (including indemnification by the Company of the Purchasers
for any failure by

                                      -10-
<PAGE>   12

the Company to deliver, or for any failure by the Purchasers to receive, stock
certificates representing the Shares on the Settlement Date) and all claims,
charges, actions or proceedings incident to or arising out of the foregoing
("Losses"). Notwithstanding the foregoing, the Indemnifying Party shall not be
liable for any Losses to the extent such Losses arise out of, result from, or
are increased by, the breach of this Agreement by, or the fraudulent acts of,
the Indemnified Party.

            6.2 Indemnification Procedures. Each Person entitled to
indemnification under this Article VI (an "Indemnified Party") shall give notice
as promptly as reasonably practicable to each party required to provide
indemnification under this Article VI (an "Indemnifying Party") of the
commencement of any action, suit, proceeding or investigation or threat thereof
made in writing in respect of which indemnity may be sought hereunder; provided,
however, failure to so notify an Indemnifying Party shall not relieve such
Indemnifying Party from any liability that it may have otherwise than on account
of this indemnity agreement so long as such failure shall not have materially
prejudiced the position of the Indemnifying Party. Upon such notification, the
Indemnifying Party shall assume the defense of such action if it is a claim
brought by a third party, and after such assumption the Indemnified Party shall
not be entitled to reimbursement of any expenses incurred by it in connection
with such action except as described below. In any such action, any Indemnified
Party shall have the right to retain its own counsel, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party unless (i) the
Indemnifying Party and the Indemnified Party shall have mutually agreed to the
contrary or (ii) the named parties in any such action (including any impleaded
parties) include both the Indemnifying Party and the Indemnified Party and
representation of both parties by the same counsel would be inappropriate due to
actual or potential differing or conflicting interests between them. An
Indemnifying Party who is not entitled to, or elects not to, assume the defense
of a claim shall not be obligated to pay the fees and expenses of more than one
counsel in any one jurisdiction for all parties indemnified by such Indemnifying
Party with respect to such claim, unless in the reasonable judgment of any
Indemnified Party a conflict of interest may exist between such Indemnified
Party and any other of such Indemnified Parties with respect to such claim, in
which event the Indemnifying Party shall be obligated to pay the fees and
expenses of such additional counsel or counsels. The Indemnifying Party shall
not be liable for any settlement of any proceeding effected without its written
consent (which shall not be unreasonably withheld or delayed by such
Indemnifying Party), but if settled with such consent or if there be final
judgment for the plaintiff, the Indemnifying Party shall indemnify the
Indemnified Party from and against any loss, damage or liability by reason of
such settlement or judgment.

                                      -11-
<PAGE>   13

                                   ARTICLE VII
                                 MISCELLANEOUS.

            7.1 Notices. All notices, requests, demands, claims, and other
communications hereunder shall be in writing and shall be delivered by certified
or registered mail (first class postage pre-paid), guaranteed overnight
delivery, or facsimile transmission if such transmission is confirmed by
delivery by certified or registered mail (first class postage pre-paid) or
guaranteed overnight delivery, to the following addresses and telecopy numbers
(or to such other addresses or telecopy numbers which such Party shall designate
in writing to the other Party):

                   (a)   if to the Company to:

                         The Good Guys, Inc.
                         7000 Marina Boulevard
                         Brisbane, California 94005-1840
                         Attention:  Ronald A. Unkefer
                         Telecopy:  (650) 615-6291

                         with a copy to:

                         Howard, Rice, Nemerovski, Canady, Falk & Rabkin
                         Three Embarcadero Center
                         Seventh Floor
                         San Francisco, California 94111-4065
                         Attention:  Richard A. Canady
                         Telecopy:  (415) 217-5910

                   (b) if to a Purchaser, at its last known address appearing on
the books of the Company maintained for such purpose.

            7.2 Loss or Mutilation. Upon receipt by the Company from any Holder
of evidence reasonably satisfactory to it of the ownership of and the loss,
theft, destruction or mutilation of a certificate representing Shares and
indemnity reasonably satisfactory to it (it being understood that the written
agreement of the Holder or an Affiliate thereof shall be sufficient indemnity)
and in case of mutilation upon surrender and cancellation hereof or thereof, the
Company will execute and deliver in lieu hereof or thereof a new stock
certificate of like tenor to such Holder; provided, in the case of mutilation,
no indemnity shall be required if the certificate representing Shares in
identifiable form is surrendered to the Company for cancellation.

                                      -12-
<PAGE>   14

            7.3 Survival. Each representation, warranty, covenant and agreement
of the parties set forth in this Agreement is independent of each other
representation, warranty, covenant and agreement. Each representation and
warranty made by any Party in this Agreement shall survive the Settlement
through the period ending on the date six months from the date of this
Agreement. Notwithstanding the foregoing, the Purchasers expressly acknowledges
that a restrictive legend will be placed on the certificates representing the
Shares, the Warrant and the Warrant Shares until such legend is permitted to be
removed under applicable law.

            7.4 Remedies.

                   (a) Each Party acknowledges that the other Parties would not
have an adequate remedy at law for money damages in the event that any of the
covenants or agreements of such Party in this Agreement was not performed in
accordance with its terms, and it is therefore agreed that each Party in
addition to and without limiting any other remedy or right such Party may have,
shall have the right to an injunction or other equitable relief in any court of
competent jurisdiction, enjoining any such breach and enforcing specifically the
terms and provisions hereof, and each Party hereby waives any and all defenses
such Party may have on the ground of lack of jurisdiction or competence of the
court to grant such an injunction or other equitable relief.

                   (b) All rights, powers and remedies under this Agreement or
otherwise available in respect hereof at law or in equity shall be cumulative
and not alternative, and the exercise or beginning of the exercise of any
thereof by any Party shall not preclude the simultaneous or later exercise of
any other such right, power or remedy by such Party.

            7.5 Entire Agreement. This Agreement (including the exhibits,
appendices and schedules attached hereto) and other documents delivered at the
Settlement pursuant hereto, contain the entire understanding of the Parties in
respect of the subject matter hereof and supersede all prior agreements and
understandings between or among the Parties with respect to such subject matter.
The exhibits and schedules hereto constitute a part hereof as though set forth
in full above.

            7.6 Expenses; Taxes. Except as otherwise provided in this Agreement,
the Parties shall pay their own fees and expenses, including their own counsel
fees, incurred in connection with this Agreement or any transaction contemplated
hereby. Further, except as otherwise provided in this Agreement, any sales tax,
stamp duty, deed transfer or other tax (except taxes based on the income of the
Purchasers) arising out of the sale of the Shares by the Company to

                                      -13-
<PAGE>   15

the Purchasers and consummation of the transactions contemplated by this
Agreement shall be paid by the Company.

            7.7 Amendment. This Agreement may be modified or amended or the
provisions hereof waived with the written consent of the Company and the
Purchasers.

            7.8 Waiver. No failure to exercise, and no delay in exercising, any
right, power or privilege under this Agreement shall operate as a waiver, nor
shall any single or partial exercise of any right, power or privilege hereunder
preclude the exercise of any other right, power or privilege. No waiver of any
breach of any provision shall be deemed to be a waiver of any preceding or
succeeding breach of the same or any other provision, nor shall any waiver be
implied from any course of dealing between the Parties. No extension of time for
performance of any obligations or other acts hereunder or under any other
agreement shall be deemed to be an extension of the time for performance of any
other obligations or any other acts. The rights and remedies of the Parties
under this Agreement are in addition to all other rights and remedies, at law or
equity, that they may have against each other.

            7.9 Binding Effect: Assignment. The rights and obligations of this
Agreement shall bind and inure to the benefit of the Parties and their
respective successors and legal assigns. The provisions of this Agreement are
intended to be for the benefit of all Holders from time to time of the Shares
and shall be enforceable by any such Holder.

            7.10 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original but all of which together shall
constitute one and the same instrument.

            7.11 Headings. The headings contained in this Agreement are for
convenience of reference only and are not to be given any legal effect and shall
not affect the meaning or interpretation of this Agreement.

            7.12 Governing Law: Interpretation. This agreement shall be
construed in accordance with and governed for all purposes by the laws of the
state of Delaware.

            7.13 Severability. The parties stipulate that the terms and
provisions of this Agreement are fair and reasonable as of the date of this
Agreement. However, if any provision of this Agreement shall be determined by a
court of competent jurisdiction to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full

                                      -14-
<PAGE>   16

force and effect and shall in no way be affected, impaired or invalidated. If,
moreover, any of those provisions shall for any reason be determined by a court
of competent jurisdiction to be unenforceable because excessively broad or vague
as to duration, geographical scope, activity or subject, it shall be construed
by limiting, reducing or defining it, so as to be enforceable.

                            [Signature Page Follows.]

                                      -15-
<PAGE>   17

            IN WITNESS WHEREOF, the Parties have caused this Agreement to be
duly executed and delivered as of the date first above written.

                                        THE GOOD GUYS, INC.

                                        By:   /s/ Ronald A. Unkefer
                                             ----------------------
                                        Name:   Ronald A. Unkefer
                                        Title:  Chief Executive Officer

                                        PURCHASER

                                        By:  /s/ Howard Lester
                                           -------------------
                                        Name:   Howard Lester
                                        Title:

                                        PURCHASER

                                        By:  /s/ Joseph P. Clayton
                                           -----------------------
                                        Name:   Joseph p. Clayton
                                        Title:

                                        PURCHASER

                                        By:  /s/  Richard Gazlay
                                           ---------------------
                                        Name:   Richard Gazlay
                                        Title:  Vice President, Operations

                                        PURCHASER

                                        By:  /s/ James I. Stansell, Jr.
                                             --------------------------
                                        Name:   James I. Stansell, Jr.
                                        Title:

                                        PURCHASER

                                        By:   /s/ John Martin
                                           ------------------
                                        Name:   John Martin
                                        Title:

                                      -16-
<PAGE>   18

                                                  PURCHASER

                                                  By:   /s/ Stan Baker
                                                     -----------------
                                                  Name:   Stan Baker
                                                  Title:

                                                  PURCHASER

                                                  By:   /s/ Joseph Schell
                                                     --------------------
                                                  Name:   Joseph Schell
                                                  Title:

                                                  PURCHASER

                                                  1994 Russell & Doris Solomon
                                                  Children's Trust

                                                  By:  /s/ Michael T. Solomon
                                                     ------------------------
                                                  Name:   Michael T. Solomon
                                                  Title:  Trustee

                                                  PURCHASER

                                                  By:   /s/ Ronald A. Unkefer
                                                     ------------------------
                                                  Name:   Ronald A. Unkefer
                                                  Title:

                                                  PURCHASER

                                                  Ravensgate Partner Trust

                                                  By:  /s/ Gary Lawrence
                                                     -------------------
                                                  Name:   Gary Lawrence
                                                  Title:  Trustee

                                      -17-
<PAGE>   19

                                   APPENDIX A

                                   DEFINITIONS

            1. Defined Terms. As used herein the following terms shall have the
following meanings:

            "Agreement" means this Stock Purchase Agreement.

            "Business Day" means any day that is not a Saturday or Sunday or a
day on which banks are required or permitted to be closed in the State of
Delaware.

            "Common Stock" means the common stock, $.001 par value per share, of
the Company, as constituted on the date hereof, and any capital stock into which
such Common Stock may thereafter be changed, and shall also include (i) capital
stock of the Company of any other class (regardless of how denominated) issued
to the holders of shares of Common Stock upon any reclassification thereof which
is also not preferred as to dividends or assets over any other class of stock of
the Company and which is not subject to redemption and (ii) shares of common
stock of any successor or acquiring corporation received by or distributed to
the holders of Common Stock of the Company.

            "The Company" has the meaning set forth in the Preamble of this
Agreement.

            "Contract" means any agreement, indenture, lease, sublease, license,
sublicense, promissory note, evidence of indebtedness, insurance policy,
annuity, mortgage, restriction, commitment, obligation or other contract,
agreement or instrument (whether written or oral).

            "Convertible Securities" means evidences of indebtedness, shares of
stock or other securities which are convertible into or exchangeable, with or
without payment of additional consideration in cash or property, for additional
shares of Common Stock, either immediately or upon the occurrence of a specified
date or a specified event.

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended, or any successor federal statute, and the rules and regulations
promulgated thereunder, all as the same shall be in effect from time to time.

            "GAAP" means generally accepted accounting principles in effect in
the United States of America from time to time.

                                      -1-
<PAGE>   20

            "Governmental Authority" means any nation or government, any state
or other political subdivision thereof, and any entity or official exercising
executive, legislative, judicial, regulatory or administrative functions of, or
pertaining to, government.

            "Holder" means each Person in whose name the Shares are registered
on the books of the Company maintained for such purpose.

            "Indemnified Party" has the meaning set forth in Section 6.2 of this
Agreement.

            "Indemnifying Party" has the meaning set forth in Section 6.2 of
this Agreement.

            "Lien" means any mortgage, pledge, security interest, assessment,
encumbrance, lien, lease, sublease, adverse claim, levy, or charge of any kind,
or any conditional Contract, title retention Contract or other contract to give
or refrain from giving any of the foregoing.

            "Losses" has the meaning set forth in Section 6.1 of this Agreement.

            "Person(s)" means any individual, sole proprietorship, partnership,
joint venture, trust, limited liability company, incorporated organization,
association, corporation, institution, public benefit corporation, entity or
government (whether federal, state, county, city, municipal or otherwise,
including, without limitation, any instrumentality, division, agency, body or
department thereof).

            "Purchase Price" has the meaning set forth in Section 1.1 of this
Agreement.

            "Purchasers" has the meaning set forth in the Preamble of this
Agreement.

            "Requirement of Law" means as to any Person, the articles of
incorporation, bylaws or other organizational or governing documents of such
Person, and any domestic or foreign and federal, state or local law, rule,
regulation, statute or ordinance or determination of any arbitrator or a court
or other Governmental Authority, in each case applicable to or binding upon such
Person or any of its properties or to which such Person or any of its property
is subject.

            "Restricted Common Stock" has the meaning set forth in Section 2.1
of this Agreement.

                                      -2-

<PAGE>   21

            "SEC" means the Securities and Exchange Commission.

            "SEC Reports" has the meaning set forth in Section 3.7 of this
Agreement.

            "Securities Act" means the Securities Act of 1933, as amended, or
any successor federal statute, and the rules and regulations promulgated
thereunder, all as the same shall be in effect at the applicable time.

            "Settlement" has the meaning set forth in Section 1.2 of this
Agreement.

            "Settlement Date" has the meaning set forth in Section 1.2 of this
Agreement.

            "Shares" has the meaning set forth in Section 1.1 of this Agreement.

            "Subsidiary" means each of those Persons of which another Person,
directly or indirectly owns beneficially securities having more than 50% of the
voting power in the election of directors (or persons fulfilling similar
functions or duties) of the owned Person (without giving effect to any
contingent voting rights).

            "Warrants" has the meaning set forth in Section 1.1 of this
Agreement.

            "Warrant Shares" means those shares of the Company's common stock,
par value $.001 per share, which Purchasers are entitled to purchase pursuant to
the Warrant.

            2. Other Definitional Provisions.

                  (a) All references to "dollars" or "$" refer to currency of
the United States of America.

                  (b) Terms defined in the singular shall have a comparable
meaning when used in the plural, and vice versa.

                  (c) All matters of an accounting nature in connection with
this Agreement and the transactions contemplated hereby shall be determined in
accordance with GAAP.

                  (d) As used herein, the neuter gender shall also denote the
masculine and feminine, and the masculine gender shall also denote the neuter
and feminine, where the context so permits.

                                      -3-
<PAGE>   22

                  (e) The words "hereof," "herein" and "hereunder," and words of
similar import, when used in this Agreement shall refer to this Agreement as a
whole (including any exhibits or schedules hereto) and not to any particular
provision of this Agreement.

                                      -4-

<PAGE>   23

                                   SCHEDULE A

<TABLE>
<CAPTION>

PURCHASER                                SHARES         WARRANTS       PURCHASE PRICE
---------                                ------         --------       --------------
<S>                                 <C>                <C>            <C>
Stan Baker                              161,617           80,808        $  749,999.85
Joe Clayton                              20,000           10,000        $   92,812.00
Richard Gazlay                           10,774            5,387        $   49,997.82
Ravensgate Partner Trust                107,744           53,872        $  499,996.81
Howard Lester                           107,744           53,872        $  499,996.81
John Martin                             215,489          107,744        $  999,998.25
Joe Schell                              215,489          107,744        $  999,998.25
1994 Russell & Doris Solomon
     Children's Trust                    10,774            5,387        $   49,997.82
Ron Unkefer                             646,468          323,234        $2,999,999.40
Jim Stansell                             21,548           10,774        $   99,995.65
TOTAL:                                1,517,647          758,822        $7,042,792.66
</TABLE>

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