-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GZw+Sf7pCddDFHGGx9Mmz6LP9+uv7FUY6w+0mFdXiBr8JiopCmZ1R8jfrqXzJ+fd Jm4ze98tUA//J/FbTFVASQ== 0000921895-08-000658.txt : 20080228 0000921895-08-000658.hdr.sgml : 20080228 20080227192109 ACCESSION NUMBER: 0000921895-08-000658 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20080228 DATE AS OF CHANGE: 20080227 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CIRCUIT CITY STORES INC CENTRAL INDEX KEY: 0000104599 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731] IRS NUMBER: 540493875 STATE OF INCORPORATION: VA FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-19084 FILM NUMBER: 08648050 BUSINESS ADDRESS: STREET 1: 9950 MAYLAND DR CITY: RICHMOND STATE: VA ZIP: 23233 BUSINESS PHONE: 8044864000 MAIL ADDRESS: STREET 1: 9950 MAYLAND DRIVE CITY: RICHMOND STATE: VA ZIP: 23233 FORMER COMPANY: FORMER CONFORMED NAME: WARDS CO INC DATE OF NAME CHANGE: 19840620 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: WATTLES MARK J CENTRAL INDEX KEY: 0000938576 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 9275 SW PEYTON LANE CITY: WILSONVILLE STATE: OR ZIP: 97070 BUSINESS PHONE: 5035701615 MAIL ADDRESS: STREET 1: 9275 SW PEYTON LANE STREET 2: ATTN: BETH M. PIERSON CITY: WILSONVILLE STATE: OR ZIP: 97070 SC 13D/A 1 sc13da107181002_02252008.htm SCHEDULE 13D AMENDMENT NO. 1 sc13da107181002_02252008.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D
(Rule 13d-101)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
§ 240.13d-2(a)

(Amendment No.  1 )1

Circuit City Stores, Inc.
(Name of Issuer)

Common Stock, $0.50 par value
(Title of Class of Securities)


172737108
(CUSIP Number)

STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
(212) 451-2300
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

February 25, 2008
(Date of Event Which Requires Filing of This Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ¨.

Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See § 240.13d-7 for other parties to whom copies are to be sent.


_______________
1              The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).


CUSIP NO. 172737108
 
1
NAME OF REPORTING PERSON
 
Mark J. Wattles
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
AF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
USA
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
11,000,000
8
SHARED VOTING POWER
 
9
SOLE DISPOSITIVE POWER
 
11,000,000
10
SHARED DISPOSITIVE POWER
 
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
11,000,000
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
¨
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
6.5%
14
TYPE OF REPORTING PERSON
 
IN

2

CUSIP NO. 172737108
 
1
NAME OF REPORTING PERSON
 
Wattles Capital Management, LLC
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
WC, OO
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
10,000,000
8
SHARED VOTING POWER
 
9
SOLE DISPOSITIVE POWER
 
10,000,000
10
SHARED DISPOSITIVE POWER
 
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
10,000,000
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
¨
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
5.9%
14
TYPE OF REPORTING PERSON
 
OO

3

CUSIP NO. 172737108
 
1
NAME OF REPORTING PERSON
 
HKW Trust
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
WC, OO
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Nevada
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
1,000,000
8
SHARED VOTING POWER
 
9
SOLE DISPOSITIVE POWER
 
1,000,000
10
SHARED DISPOSITIVE POWER
 
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
1,000,000
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
¨
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
0.6%
14
TYPE OF REPORTING PERSON
 
OO

4

CUSIP NO. 172737108
 
1
NAME OF REPORTING PERSON
 
James A. Marcum
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
OO
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
USA
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
- 0 -
8
SHARED VOTING POWER
 
- 0 - **
9
SOLE DISPOSITIVE POWER
 
- 0 -
10
SHARED DISPOSITIVE POWER
 
- 0 - **
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
- 0 - **
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
¨
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
0%**
14
TYPE OF REPORTING PERSON
 
IN
 
** See Item 5.

 
5

CUSIP NO. 172737108
 
1
NAME OF REPORTING PERSON
 
Elliott Wahle
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
OO
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
USA
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
- 0 -
8
SHARED VOTING POWER
 
- 0 - **
9
SOLE DISPOSITIVE POWER
 
- 0 -
10
SHARED DISPOSITIVE POWER
 
- 0 - **
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
- 0 - **
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
¨
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
0%**
14
TYPE OF REPORTING PERSON
 
IN
 
** See Item 5.
6

CUSIP NO. 172737108
 
1
NAME OF REPORTING PERSON
 
                                       Don R. Kornstein
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
OO
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
USA
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
- 0 -
8
SHARED VOTING POWER
 
- 0 - **
9
SOLE DISPOSITIVE POWER
 
- 0 -
10
SHARED DISPOSITIVE POWER
 
- 0 - **
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
- 0 - **
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
¨
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
0%**
14
TYPE OF REPORTING PERSON
 
IN
 
** See Item 5.

 
7

CUSIP NO. 172737108
 
1
NAME OF REPORTING PERSON
 
Anthony Bergamo
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
PF, OO
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
USA
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
- 15,000 -
8
SHARED VOTING POWER
 
- 0 - **
9
SOLE DISPOSITIVE POWER
 
- 15,000 -
10
SHARED DISPOSITIVE POWER
 
- 0 - **
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
- 15,000  -**
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
¨
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
LESS THAN 1%**
14
TYPE OF REPORTING PERSON
 
IN
 
** See Item 5.
8

CUSIP NO. 172737108
 
1
NAME OF REPORTING PERSON
 
Alexander M. Bond
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
PF, OO
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
USA
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
10,000
8
SHARED VOTING POWER
 
- 0 -**
9
SOLE DISPOSITIVE POWER
 
10,000
10
SHARED DISPOSITIVE POWER
 
- 0 -**
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
10,000
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
¨
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
LESS THAN 1% **
14
TYPE OF REPORTING PERSON
 
IN
 
** See Item 5.
 
9

CUSIP NO. 172737108
 
The following constitutes Amendment No. 1 (“Amendment No. 1”) to the Schedule 13D filed by the undersigned.  This Amendment No. 1 amends the Schedule 13D as specifically set forth.

Item 2 is hereby amended to add the following:
 
James A. Marcum, Elliott Wahle, Don R. Kornstein, Anthony Bergamo and Alexander M. Bond are hereby added as Reporting Persons to the Schedule 13D.
 
James A. Marcum (“Mr. Marcum”) is a nominee for the Board of Directors of the Issuer and his principal occupation is serving as an Operating Partner of Tri-Artisan Capital Partners, LLC.  Since April 2007, Mr. Marcum has also served as the Chairman and Chief Strategic Officer of Enabl-u Technologies Corp.  The principal business address of Mr. Marcum is c/o Tri-Artisan Capital Partners, 110 East 59th Street, 37th Floor, New York, New York 10022.  Mr. Marcum is a citizen of the United States of America.
 
Elliott Wahle (“Mr. Wahle”) is a nominee for the Board of Directors of the Issuer and his principal occupation is serving as Chairman and Chief Executive Officer of Rustique Home Furnishings.  Mr. Wahle is also the Chairman and cofounder of Generation Capital Inc. and currently serves as President of Rykom Enterprises. The principal business address of Mr. Wahle is c/o Rustique Home Furnishings, 114 Railside Road, Toronto, Ontario M3A 1A3.  Mr. Wahle is a citizen of the United States of America.
 
Don R. Kornstein (“Mr. Kornstein”) is a nominee for the Board of Directors of the Issuer and his principal occupation is serving as the Managing Member of Alpine Advisors LLC.  Mr. Kornstein also currently serves as the Chairman of Bally Total Fitness, Inc.  The principal business address of Mr. Kornstein is c/o Alpine Advisors LLC, 825 Lakeshore Blvd., Incline Village, Nevada 89451.  Mr. Kornstein is a citizen of the United States of America.
 
Anthony Bergamo (“Mr. Bergamo”) is a nominee for the Board of Directors of the Issuer and his principal occupation is serving as Vice Chairman of MB Real Estate. The principal business address of Mr. Bergamo is c/o MB Real Estate, 335 Madison Avenue, 14th Floor, New York, New York 10017.  Mr. Bergamo is a citizen of the United States of America.
 
Alexander M. Bond (“Mr. Bond”) is a nominee for the Board of Directors of the Issuer and his principal occupation is serving as a managing director of Wattles Capital Management, LLC ("WCM").  The principal business address of Mr. Bond is c/o Wattles Capital Management, LLC, 7945 W. Sahara Ave., Las Vegas, NV 89117.  Mr. Bond is a citizen of the United States of America.
 
(d)           During the last five years, none of Messrs. Marcum, Wahle, Kornstein, Bergamo or Bond has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).
 

10

CUSIP NO. 172737108
 
(e)           During the last five years, none of Messrs. Marcum, Wahle, Kornstein, Bergamo or Bond has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction making him subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
 
Item 3 is hereby amended to add the following:
 
The aggregate purchase price of the 10,000 Shares owned directly by Mr. Bond is approximately $40,110.  The Shares owned directly by Mr. Bond were acquired with personal funds.
 
The aggregate purchase price of the 15,000 Shares owned directly by Mr. Bergamo is approximately $74,953.  The Shares owned directly by Mr. Bergamo were acquired with personal funds.
 
Item 4 is hereby amended to add the following:
 
WCM is seeking representation on the Issuer’s Board of Directors.  On February 25, 2008, WCM hand-delivered a letter to the Corporate Secretary of the Issuer (the “Nomination Letter”) nominating Messrs. Marcum, Wahle, Kornstein, Bergamo and Bond, as set forth therein, for election to the board of directors of the Issuer at the Issuer’s 2008 annual meeting of shareholders (the “2008 Annual Meeting”).

Item 5(a) is hereby amended to add the following:

As of the date of this filing, none of Messrs. Marcum, Wahle and Kornstein directly owns any Shares of the Issuer.  Each of Messrs. Marcum, Wahle and Kornstein, as members of a “group” for the purposes of Rule 13d-5(b)(1) of the Securities Exchange Act of 1934, as amended, may be deemed to beneficially own the 10,000,000 Shares owned by WCM and the 1,000,000 Shares owned by HKW Trust, constituting approximately 6.5% of the Shares outstanding.  Each of Messrs. Marcum, Wahle and Kornstein disclaims beneficial ownership of such Shares.

As of the date of this filing, Mr. Bond directly owns 10,000 Shares of the Issuer, constituting less than one percent of the Shares outstanding.  Mr. Bond, as a member of a “group” for the purposes of Rule 13d-5(b)(1) of the Securities Exchange Act of 1934, as amended, may be deemed to beneficially own the 10,000,000 Shares owned by WCM and the 1,000,000 Shares owned by HKW Trust, constituting approximately 6.5% of the Shares outstanding.  Mr. Bond disclaims beneficial ownership of the Shares owned by WCM and HKW Trust.

As of the date of this filing, Mr. Bergamo directly owns 15,000 Shares of the Issuer, constituting less than one percent of the Shares outstanding.  Mr. Bergamo, as a member of a “group” for the purposes of Rule 13d-5(b)(1) of the Securities Exchange Act of 1934, as amended, may be deemed to beneficially own the 10,000,000 Shares owned by WCM and the 1,000,000 Shares owned by HKW Trust, constituting approximately 6.5% of the Shares outstanding.  Mr. Bergamo disclaims beneficial ownership of the Shares owned by WCM and HKW Trust.
 
 
11

CUSIP NO. 172737108

 
Item 5(c) is hereby amended to add the following:

Schedule A annexed hereto lists all transactions in the Shares by the Reporting Persons during the past 60 days.  All of such transactions were effected in the open market.

Item 6 is hereby amended to add the following:

On February 27, 2008, the Reporting Persons entered into a Joint Filing and Solicitation Agreement in which, among other things, (a) the parties agreed to the joint filing on behalf of each of them of statements on Schedule 13D with respect to the securities of the Issuer, (b) the parties agreed to solicit proxies or written consents for the election of the Nominees at the 2008 Annual Meeting of the Issuer and to take all other action necessary or advisable to achieve the foregoing and (c) WCM agreed to bear all expenses incurred in connection with the Reporting Persons’ activities, including approved expenses incurred by any of the parties in connection with the Solicitation, subject to certain limitations.  A copy of the Joint Filing and Solicitation Agreement is attached as Exhibit 99.1 hereto and is incorporated herein by reference.
 
Pursuant to letter agreements, WCM has agreed to indemnify each of Messrs. Marcum, Wahle, Kornstein and Bergamo against claims arising from the solicitation of proxies from the Issuer's shareholders in connection with the 2008 Annual Meeting.  The form of letter agreement is attached as Exhibit 99.2 hereto and is incorporated herein by reference.

Pursuant to letter agreements, WCM has agreed to compensate each of Messrs. Marcum, Wahle, Kornstein and Bergamo for being named as and agreeing to serve as nominees of WCM for election as directors of the Issuer at the 2008 Annual Meeting (the “Compensation Letter Agreements”). Pursuant to the terms of the Compensation Letter Agreements, (i) WCM has agreed to pay each such nominee $50,000 in cash upon the submission of the Nomination Letter by WCM to the Company and (ii) each nominee has agreed to use such compensation (net of any estimated tax payments) to acquire securities of the Issuer. A form of the Compensation Letter Agreement is attached hereto as Exhibit 99.3 and is incorporated herein by reference.
 
Item 7 is hereby amended to add the following exhibits:
 
Exhibit 99.1
Joint Filing and Solicitation Agreement by and among Wattles Capital Management, LLC, HKW Trust, Mark J. Wattles, James A. Marcum, Elliott Wahle, Don R. Kornstein, Anthony Bergamo and Alexander M. Bond, dated February 27, 2008.
   
Exhibit 99.2
Form of Indemnification Letter Agreement.
   
Exhibit 99.3
Form of Compensation Letter Agreement.
 
 
 
12

CUSIP NO. 172737108
 
SIGNATURES
 
After reasonable inquiry and to the best knowledge and belief of the undersigned, the undersigned certify that the information set forth in this statement is true, complete and correct.
 
February 27, 2008
 
 
WATTLES CAPITAL MANAGEMENT, LLC
   
 
By:
/s/ Mark J. Wattles
   
Name:
Mark J. Wattles
   
Title:
President
   
   
 
HKW TRUST
   
 
By:
/s/ Mark J. Wattles
   
Name:
Mark J. Wattles
   
Title:
Trustee
   
   
 
/s/ Mark J. Wattles
 
Mark J. Wattles
   
 
/s/ James A. Marcum
 
James A. Marcum
   
 
/s/ Elliott Wahle
 
Elliott Wahle
   
 
/s/ Don R. Kornstein
 
Don R. Kornstein
   
 
/s/ Anthony Bergamo
 
Anthony Bergamo
   
 
/s/ Alexander M. Bond
 
Alexander M. Bond


13

CUSIP NO. 172737108
 
Index of Exhibits.
 
Exhibit 99.1
Joint Filing and Solicitation Agreement by and among Wattles Capital Management, LLC, HKW Trust, Mark J. Wattles, James A. Marcum, Elliott Wahle, Don R. Kornstein, Anthony Bergamo and Alexander M. Bond, dated February 27, 2008.
   
Exhibit 99.2
Form of Indemnification Letter Agreement.
   
Exhibit 99.3
Form of Compensation Letter Agreement.
 
 
14

CUSIP NO. 172737108
 
SCHEDULE A

Transactions in the Shares During the Past 60 Days

Shares of Common Stock
Purchased/Sold
Price Per
Share($)
Date of
Purchase/Sale

 
WATTLES CAPITAL MANAGEMENT, LLC

20,300
 
4.0300
01/02/2008
60,100
 
4.0400
01/02/2008
700
 
4.0450
01/02/2008
312,600
 
4.0500
01/02/2008
10,500
 
4.0600
01/02/2008
100
 
4.0650
01/02/2008
33,000
 
4.0700
01/02/2008
400
 
4.0750
01/02/2008
38,800
 
4.0800
01/02/2008
12,400
 
4.0900
01/02/2008
400
 
4.0950
01/02/2008
111,008
 
4.1000
01/02/2008
136,592
 
4.1100
01/02/2008
1,100
 
4.1150
01/02/2008
54,100
 
4.1200
01/02/2008
2,100
 
4.1250
01/02/2008
101,400
 
4.1300
01/02/2008
1,300
 
4.1350
01/02/2008
47,400
 
4.1400
01/02/2008
155,700
 
4.1500
01/02/2008
1,400
 
3.8400
01/03/2008
988,800
 
3.8500
01/03/2008
1,100
 
3.8550
01/03/2008
117,800
 
3.8600
01/03/2008
3,100
 
3.8650
01/03/2008
86,600
 
3.8700
01/03/2008
168,411
 
3.8800
01/03/2008
136,397
 
3.8900
01/03/2008
238,392
 
3.9000
01/03/2008
1,000
 
3.9050
01/03/2008
30,900
 
3.9100
01/03/2008
19,000
 
3.9200
01/03/2008
15,000
 
3.9300
01/03/2008
 
 
15

CUSIP NO. 172737108
 
 
28,400
 
3.9400
01/03/2008
5,300
 
3.9500
01/03/2008
20,300
 
4.0300
01/02/2008
60,100
 
4.0400
01/02/2008
700
 
4.0450
01/02/2008
312,600
 
4.0500
01/02/2008
10,500
 
4.0600
01/02/2008
100
 
4.0650
01/02/2008
33,000
 
4.0700
01/02/2008
400
 
4.0750
01/02/2008
38,800
 
4.0800
01/02/2008
12,400
 
4.0900
01/02/2008
400
 
4.0950
01/02/2008
111,008
 
4.1000
01/02/2008
136,592
 
4.1100
01/02/2008
1,100
 
4.1150
01/02/2008
54,100
 
4.1200
01/02/2008
2,100
 
4.1250
01/02/2008
101,400
 
4.1300
01/02/2008
1,300
 
4.1350
01/02/2008
47,400
 
4.1400
01/02/2008
155,700
 
4.1500
01/02/2008
1,400
 
3.8400
01/03/2008
988,800
 
3.8500
01/03/2008
1,100
 
3.8550
01/03/2008
117,800
 
3.8600
01/03/2008
3,100
 
3.8650
01/03/2008
86,600
 
3.8700
01/03/2008
168,411
 
3.8800
01/03/2008
136,397
 
3.8900
01/03/2008
238,392
 
3.9000
01/03/2008
1,000
 
3.9050
01/03/2008
30,900
 
3.9100
01/03/2008
19,000
 
3.9200
01/03/2008
15,000
 
3.9300
01/03/2008
28,400
 
3.9400
01/03/2008
5,300
 
3.9500
01/03/2008
11,200
 
3.9600
01/03/2008
73,900
 
3.9700
01/03/2008
58,199
 
3.9800
01/03/2008
73,101
 
3.9900
01/03/2008
24,500
 
4.0000
01/03/2008
21,800
 
4.0100
01/03/2008
 
 
16

CUSIP NO. 172737108
 
200
 
4.0150
01/03/2008
19,200
 
4.0200
01/03/2008
31,300
 
4.0300
01/03/2008
200
 
4.0350
01/03/2008
26,700
 
4.0400
01/03/2008
91,800
 
4.0500
01/03/2008
35,000
 
4.0600
01/03/2008
400
 
4.0650
01/03/2008
48,900
 
4.0700
01/03/2008
39,800
 
4.0800
01/03/2008
46,300
 
4.0900
01/03/2008
32,300
 
4.1000
01/03/2008
21,493
 
4.1100
01/03/2008
32,324
 
4.1200
01/03/2008
27,183
 
4.1300
01/03/2008
7,400
 
4.1400
01/03/2008
2,500
 
4.1500
01/03/2008
200
 
4.1600
01/03/2008
32,500
 
4.1800
01/03/2008
3,300
 
3.6100
01/04/2008
23,600
 
3.6200
01/04/2008
59,600
 
3.6300
01/04/2008
7,700
 
3.6400
01/04/2008
800
 
3.6500
01/04/2008
23,100
 
3.6600
01/04/2008
13,800
 
3.6700
01/04/2008
14,900
 
3.6800
01/04/2008
45,800
 
3.6900
01/04/2008
600
 
3.69500
01/04/2008
126,200
 
3.7000
01/04/2008
102,600
 
3.7100
01/04/2008
41,400
 
3.7200
01/04/2008
13,900
 
3.7300
01/04/2008
10,245
 
3.7400
01/04/2008
33,355
 
3.7500
01/04/2008
23,300
 
3.7600
01/04/2008
24,600
 
3.7700
01/04/2008
79,500
 
3.7800
01/04/2008
86,600
 
3.7900
01/04/2008
67,900
 
3.8000
01/04/2008
100
 
3.8076
01/04/2008
56,700
 
3.8100
01/04/2008
100
 
3.8110
01/04/2008
 
 
17

CUSIP NO. 172737108
 
100
 
3.8119
01/04/2008
62,000
 
3.8200
01/04/2008
28,200
 
3.8300
01/04/2008
33,100
 
3.8400
01/04/2008
100
 
3.8407
01/04/2008
45,940
 
3.8500
01/04/2008
36,400
 
3.8600
01/04/2008
100
 
3.8614
01/04/2008
1,100
 
3.8650
01/04/2008
9,660
 
3.8700
01/04/2008
3,900
 
3.8800
01/04/2008
4,300
 
3.8900
01/04/2008
43,500
 
3.9000
01/04/2008
87,900
 
3.9100
01/04/2008
60,400
 
3.9200
01/04/2008
3,100
 
3.9300
01/04/2008
20,500
 
3.9400
01/04/2008
800
 
3.8200
01/07/2008
1,200
 
3.8300
01/07/2008
4,500
 
3.8400
01/07/2008
3,800
 
3.8500
01/07/2008
5,800
 
3.8600
01/07/2008
13,900
 
3.8700
01/07/2008
12,000
 
3.8800
01/07/2008
7,700
 
3.8900
01/07/2008
100
 
3.8950
01/07/2008
57,100
 
3.9000
01/07/2008
500
 
3.9050
01/07/2008
15,700
 
3.9100
01/07/2008
200
 
3.9150
01/07/2008
31,700
 
3.9200
01/07/2008
2,200
 
3.9300
01/07/2008
6,100
 
3.9400
01/07/2008
20,100
 
3.9500
01/07/2008
600
 
3.9550
01/07/2008
1,000
 
3.9575
01/07/2008
29,100
 
3.9600
01/07/2008
20,500
 
3.9700
01/07/2008
600
 
3.9750
01/07/2008
1,300
 
3.9775
01/07/2008
37,209
 
3.9800
01/07/2008
23,600
 
3.9900
01/07/2008
100
 
3.9975
01/07/2008
 
 
18

CUSIP NO. 172737108
 
42,541
 
4.0000
01/07/2008
200
 
4.0050
01/07/2008
103,750
 
4.0100
01/07/2008
600
 
4.0150
01/07/2008
53,000
 
4.0200
01/07/2008
55,000
 
4.0300
01/07/2008
100
 
4.0325
01/07/2008
62,900
 
4.0400
01/07/2008
200
 
4.0450
01/07/2008
10,400
 
4.0500
01/07/2008
500
 
4.0550
01/07/2008
48,000
 
4.0600
01/07/2008
38,400
 
4.0700
01/07/2008
1,000
 
4.0775
01/07/2008
65,200
 
4.0800
01/07/2008
109,000
 
4.0900
01/07/2008
61,400
 
4.1000
01/07/2008
81,900
 
4.1100
01/07/2008
300
 
4.1175
01/07/2008
30,000
 
4.1200
01/07/2008
10,435
 
4.1400
01/07/2008
35,665
 
4.1500
01/07/2008
36,600
 
4.1600
01/07/2008
5,500
 
4.1700
01/07/2008
2,700
 
3.8800
01/08/2008
600
 
3.8850
01/08/2008
5,400
 
3.8900
01/08/2008
23,500
 
3.9000
01/08/2008
400
 
3.9050
01/08/2008
5,700
 
3.9100
01/08/2008
3,900
 
3.9200
01/08/2008
3,800
 
3.9300
01/08/2008
2,100
 
3.9400
01/08/2008
3,500
 
3.9500
01/08/2008
7,700
 
3.9600
01/08/2008
100
 
3.9700
01/08/2008
6,500
 
3.9800
01/08/2008
2,500
 
3.9900
01/08/2008
800
 
3.9950
01/08/2008
17,500
 
4.0000
01/08/2008
700
 
4.0075
01/08/2008
14,400
 
4.0100
01/08/2008
7,800
 
4.0200
01/08/2008
 
 
19

CUSIP NO. 172737108
 
200
 
4.0400
01/08/2008
500
 
4.0500
01/08/2008
800
 
4.0600
01/08/2008
1,500
 
4.0700
01/08/2008
3,000
 
4.0800
01/08/2008
100
 
4.0900
01/08/2008
2,100
 
4.1000
01/08/2008
2,700
 
4.1100
01/08/2008
7,900
 
4.1200
01/08/2008
6,700
 
4.1300
01/08/2008
6,200
 
4.1400
01/08/2008
1,700
 
4.1500
01/08/2008
6,500
 
4.1600
01/08/2008
1,300
 
4.1650
01/08/2008
8,400
 
4.1700
01/08/2008
1,200
 
4.1750
01/08/2008
15,800
 
4.1800
01/08/2008
35,700
 
4.1900
01/08/2008
40,252
 
4.2000
01/08/2008
44,000
 
4.2100
01/08/2008
21,400
 
4.2200
01/08/2008
1,300
 
4.2250
01/08/2008
27,048
 
4.2300
01/08/2008
21,100
 
4.2400
01/08/2008
20,200
 
4.2500
01/08/2008
39,300
 
4.2600
01/08/2008
50,899
 
4.2700
01/08/2008
69,751
 
4.2800
01/08/2008
88,630
 
4.2900
01/08/2008
70,020
 
4.3000
01/08/2008
22,900
 
4.3100
01/08/2008
200
 
4.3125
01/08/2008
100
 
4.3150
01/08/2008
85,100
 
4.3200
01/08/2008
700
 
4.3225
01/08/2008
116,600
 
4.3300
01/08/2008
600
 
4.3350
01/08/2008
110,325
 
4.3400
01/08/2008
200
 
4.3425
01/08/2008
500
 
4.3450
01/08/2008
166,100
 
4.3500
01/08/2008
4,900
 
4.3525
01/08/2008
308,587
 
4.3600
01/08/2008
 
 
20

CUSIP NO. 172737108
 
1,400
 
4.3650
01/08/2008
127,113
 
4.3700
01/08/2008
3,900
 
4.3750
01/08/2008
172,500
 
4.3800
01/08/2008
1,400
 
4.3850
01/08/2008
183,774
 
4.3900
01/08/2008
100
 
4.3925
01/08/2008
700
 
4.3950
01/08/2008
142,801
 
4.4000
01/08/2008
100
 
4.4050
01/08/2008
56,000
 
4.4100
01/08/2008
29,300
 
4.4200
01/08/2008
6,200
 
4.4300
01/08/2008
2,100
 
4.4400
01/08/2008
187,500
 
4.0000
01/09/2008
69,375
 
4.0500
01/09/2008
225
 
4.0525
01/09/2008
450
 
4.0550
01/09/2008
11,775
 
4.0600
01/09/2008
7,950
 
4.0700
01/09/2008
1,275
 
4.0750
01/09/2008
12,075
 
4.0800
01/09/2008
75
 
4.0900
01/09/2008
1,425
 
4.1000
01/09/2008
5,250
 
4.1100
01/09/2008
75
 
4.1150
01/09/2008
14,775
 
4.1200
01/09/2008
1,800
 
4.1250
01/09/2008
36,450
 
4.1300
01/09/2008
900
 
4.1350
01/09/2008
45,600
 
4.1400
01/09/2008
2,175
 
4.1450
01/09/2008
86,175
 
4.1500
01/09/2008
450
 
4.1550
01/09/2008
7,425
 
4.1600
01/09/2008
450
 
4.1650
01/09/2008
35,250
 
4.1700
01/09/2008
1,800
 
4.1750
01/09/2008
124,425
 
4.1800
01/09/2008
1,500
 
4.1850
01/09/2008
18,975
 
4.1900
01/09/2008
19,050
 
4.2000
01/09/2008
13,800
 
4.2100
01/09/2008
 
 
21

CUSIP NO. 172737108
 
3,975
 
4.2200
01/09/2008
3,075
 
4.2300
01/09/2008
5,925
 
4.2400
01/09/2008
3,150
 
4.2500
01/09/2008
2,100
 
4.2600
01/09/2008
525
 
4.2650
01/09/2008
9,225
 
4.2700
01/09/2008
225
 
4.2750
01/09/2008
9,188
 
4.2800
01/09/2008
4,162
 
4.2900
01/09/2008
150
 
3.9125
01/10/2008
5,550
 
3.9200
01/10/2008
25,688
 
3.9300
01/10/2008
24,900
 
3.9400
01/10/2008
375
 
3.9450
01/10/2008
37,238
 
3.9500
01/10/2008
11,700
 
3.9600
01/10/2008
19,050
 
3.9700
01/10/2008
150
 
3.9750
01/10/2008
54,975
 
3.9800
01/10/2008
23,100
 
3.9900
01/10/2008
22,125
 
4.0000
01/10/2008
18,750
 
4.1000
01/11/2008
850
 
3.9725
01/14/2008
400
 
3.9750
01/14/2008
65,800
 
3.9800
01/14/2008
750
 
3.9850
01/14/2008
3,608
 
3.9875
01/14/2008
50,388
 
3.9900
01/14/2008
2,800
 
3.9950
01/14/2008
7,800
 
3.9975
01/14/2008
142,756
 
4.0000
01/14/2008
50
 
4.0025
01/14/2008
950
 
4.0050
01/14/2008
14,850
 
4.0075
01/14/2008
44,636
 
4.0100
01/14/2008
1,850
 
4.0150
01/14/2008
16,350
 
4.0175
01/14/2008
31,700
 
4.0200
01/14/2008
600
 
4.0250
01/14/2008
21,500
 
4.0300
01/14/2008
50
 
4.0325
01/14/2008
3,050
 
4.0350
01/14/2008
 
 
22

CUSIP NO. 172737108
 
13,950
 
4.0375
01/14/2008
34,515
 
4.0400
01/14/2008
600
 
4.0450
01/14/2008
9,700
 
4.0500
01/14/2008
4,900
 
4.0600
01/14/2008
2,900
 
4.0700
01/14/2008
450
 
4.0750
01/14/2008
6,500
 
4.0775
01/14/2008
6,200
 
4.0800
01/14/2008
600
 
4.0850
01/14/2008
2,300
 
4.0875
01/14/2008
7,500
 
4.0900
01/14/2008
24,150
 
4.1000
01/14/2008
153
 
3.7000
01/15/2008
76
 
3.7025
01/15/2008
1,185
 
3.7050
01/15/2008
1,491
 
3.7075
01/15/2008
17,130
 
3.7100
01/15/2008
688
 
3.7150
01/15/2008
382
 
3.7175
01/15/2008
8,335
 
3.7200
01/15/2008
841
 
3.7250
01/15/2008
4,588
 
3.7275
01/15/2008
8,144
 
3.7300
01/15/2008
1,108
 
3.8000
01/15/2008
344
 
3.8050
01/15/2008
230
 
3.8075
01/15/2008
7,877
 
3.8100
01/15/2008
115
 
3.8175
01/15/2008
2,332
 
3.8200
01/15/2008
459
 
3.8250
01/15/2008
173
 
3.8275
01/15/2008
16,842
 
3.8300
01/15/2008
459
 
3.8350
01/15/2008
3,671
 
3.8375
01/15/2008
4,627
 
3.8400
01/15/2008

 
HKW TRUST

62,500
 
4.0000
01/09/2008
23,125
 
4.0500
01/09/2008
75
 
4.0525
01/09/2008
 
 
23

CUSIP NO. 172737108
 
150
 
4.0550
01/09/2008
3,925
 
4.0600
01/09/2008
2,650
 
4.0700
01/09/2008
425
 
4.0750
01/09/2008
4,025
 
4.0800
01/09/2008
25
 
4.0900
01/09/2008
475
 
4.1000
01/09/2008
1,750
 
4.1100
01/09/2008
25
 
4.1150
01/09/2008
4,925
 
4.1200
01/09/2008
600
 
4.1250
01/09/2008
12,150
 
4.1300
01/09/2008
300
 
4.1350
01/09/2008
15,200
 
4.1400
01/09/2008
725
 
4.1450
01/09/2008
28,725
 
4.1500
01/09/2008
150
 
4.1550
01/09/2008
2,475
 
4.1600
01/09/2008
150
 
4.1650
01/09/2008
11,750
 
4.1700
01/09/2008
600
 
4.1750
01/09/2008
41,475
 
4.1800
01/09/2008
500
 
4.1850
01/09/2008
6,325
 
4.1900
01/09/2008
6,350
 
4.2000
01/09/2008
4,600
 
4.2100
01/09/2008
1,325
 
4.2200
01/09/2008
1,025
 
4.2300
01/09/2008
1,975
 
4.2400
01/09/2008
1,050
 
4.2500
01/09/2008
700
 
4.2600
01/09/2008
175
 
4.2650
01/09/2008
3,075
 
4.2700
01/09/2008
75
 
4.2750
01/09/2008
3,061
 
4.2800
01/09/2008
1,389
 
4.2900
01/09/2008
50
 
3.9125
01/10/2008
1,850
 
3.9200
01/10/2008
8,563
 
3.9300
01/10/2008
8,300
 
3.9400
01/10/2008
125
 
3.9450
01/10/2008
12,413
 
3.9500
01/10/2008
3,900
 
3.9600
01/10/2008
 
 
24

CUSIP NO. 172737108
 
6,350
 
3.9700
01/10/2008
50
 
3.9750
01/10/2008
18,325
 
3.9800
01/10/2008
7,700
 
3.9900
01/10/2008
7,375
 
4.0000
01/10/2008
18,750
 
4.1000
01/11/2008
850
 
3.9725
01/14/2008
400
 
3.9750
01/14/2008
65,800
 
3.9800
01/14/2008
750
 
3.9850
01/14/2008
3,608
 
3.9875
01/14/2008
50,388
 
3.9900
01/14/2008
2,800
 
3.9950
01/14/2008
7,800
 
3.9975
01/14/2008
142,756
 
4.0000
01/14/2008
50
 
4.0025
01/14/2008
950
 
4.0050
01/14/2008
14,850
 
4.0075
01/14/2008
44,636
 
4.0100
01/14/2008
1,850
 
4.0150
01/14/2008
16,350
 
4.0175
01/14/2008
31,700
 
4.0200
01/14/2008
600
 
4.0250
01/14/2008
21,500
 
4.0300
01/14/2008
50
 
4.0325
01/14/2008
3,050
 
4.0350
01/14/2008
13,950
 
4.0375
01/14/2008
34,515
 
4.0400
01/14/2008
600
 
4.0450
01/14/2008
9,700
 
4.0500
01/14/2008
4,900
 
4.0600
01/14/2008
2,900
 
4.0700
01/14/2008
450
 
4.0750
01/14/2008
6,500
 
4.0775
01/14/2008
6,200
 
4.0800
01/14/2008
600
 
4.0850
01/14/2008
2,300
 
4.0875
01/14/2008
7,500
 
4.0900
01/14/2008
24,150
 
4.1000
01/14/2008
247
 
3.7000
01/15/2008
124
 
3.7025
01/15/2008
1,915
 
3.7050
01/15/2008
2,409
 
3.7075
01/15/2008
 
 
25

CUSIP NO. 172737108
 
27,670
 
3.7100
01/15/2008
1,112
 
3.7150
01/15/2008
618
 
3.7175
01/15/2008
13,465
 
3.7200
01/15/2008
1,359
 
3.7250
01/15/2008
7,412
 
3.7275
01/15/2008
13,156
 
3.7300
01/15/2008
1,792
 
3.8000
01/15/2008
556
 
3.8050
01/15/2008
370
 
3.8075
01/15/2008
12,723
 
3.8100
01/15/2008
185
 
3.8175
01/15/2008
3,768
 
3.8200
01/15/2008
741
 
3.8250
01/15/2008
279
 
3.8275
01/15/2008
27,206
 
3.8300
01/15/2008
741
 
3.8350
01/15/2008
5,929
 
3.8375
01/15/2008
7,473
 
3.8400
01/15/2008

MARK J. WATTLES
None

JAMES A. MARCUM
None

ELLIOTT WAHLE
None

DON R. KORNSTEIN
None

ANTHONY BERGAMO

14,700
 
4.9710
02/26/2008
300
 
4.9800
02/26/2008

ALEXANDER M. BOND

16,000
 
4.0110
01/10/2008
6,000
 
5.0200
01/28/2008

 

26
EX-99.1 2 ex991sc13da107181002_022508.htm JOINT FILING AND SOLICITATION AGREEMENT ex991sc13da107181002_022508.htm
Exhibit 99.1
 
JOINT FILING AND SOLICITATION AGREEMENT
 
WHEREAS, certain of the undersigned are shareholders, direct or beneficial, of Circuit City Stores, Inc., a Virginia corporation (“Circuit City” or the “Company”);
 
WHEREAS, Wattles Capital Management, LLC, a Delaware limited liability company (“WCM”), HKW Trust, Mark J. Wattles, James A. Marcum, Elliott Wahle, Don R. Kornstein, Anthony Bergamo and Alexander M. Bond wish to form a group for the purpose of soliciting proxies or written consents to elect James A. Marcum, Elliott Wahle, Don R. Kornstein, Anthony Bergamo and Alexander M. Bond (the “Nominees”), or any other person designated by the undersigned, as directors of Circuit City at the 2008 annual meeting of shareholders and taking all other action necessary or advisable to achieve the foregoing.
 
NOW, IT IS AGREED, this 27th day of February 2008 by the parties hereto:
 
1.           In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange Act of 1934, as amended, each of the undersigned (collectively, the “Group”) agrees to the joint filing on behalf of each of them of statements on Schedule 13D with respect to the securities of Circuit City.  Each member of the Group shall be responsible for the accuracy and completeness of his/its own disclosure therein, and is not responsible for the accuracy and completeness of the information concerning the other members, unless such member knows or has reason to know that such information is inaccurate.
 
2.           So long as this agreement is in effect, each of the undersigned shall provide written notice to Olshan Grundman Frome Rosenzweig & Wolosky LLP (“Olshan”) of (i) any of their purchases or sales of securities of Circuit City; or (ii) any securities of Circuit City over which they acquire or dispose of beneficial ownership.  Notice shall be given no later than 24 hours after each such transaction.
 
3.           Each of the undersigned agrees to solicit proxies or written consents to elect the Nominees, or any other person designated by the Group, as directors of Circuit City and to take all other action necessary or advisable to achieve the foregoing (the “Solicitation”).
 
4.           WCM agrees to bear all expenses incurred in connection with the Group’s activities, including expenses incurred by any of the parties in the Solicitation.  Notwithstanding the foregoing, WCM shall not be required to reimburse any party for (i) out-of-pocket expenses incurred by a party in the aggregate in excess of $500 without WCM’s prior written approval or (ii) the value of the time of any party.   WCM shall only be responsible for any legal fees incurred by any of the Nominees that arise pursuant to and in accordance with the terms of the indemnification letter agreements by and between WCM and each Nominee, unless otherwise consented to in writing by WCM.
 
5.           The relationship of the parties hereto shall be limited to carrying on the business of the Group in accordance with the terms of this Agreement.  Such relationship shall be construed and deemed to be for the sole and limited purpose of carrying on such business as described herein.  Nothing herein shall be construed to authorize any party to act as an agent for any other party, or to create a joint venture or partnership, or to constitute an indemnification.  Nothing herein shall restrict any party’s right to purchase or sell securities of Circuit City as he/it deems appropriate, in his/its sole discretion, provided that all such sales are made in compliance with all applicable securities laws.
 
 
 
 

 
 
6.           This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument, which may be sufficiently evidenced by one counterpart.
 
7.           In the event of any dispute arising out of the provisions of this Agreement, the parties hereto consent and submit to the exclusive jurisdiction of the Federal and State Courts in the State of New York.
 
8.           Any party hereto may terminate his obligations under this Agreement at any time on 24 hours’ written notice to all other parties, with a copy by fax to Steven Wolosky at Olshan, Fax No. (212) 451-2222.
 
9.           Each party acknowledges that Olshan shall act as counsel for both the Group and WCM.
 

 
 
 

 

 
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.
 
 
 
WATTLES CAPITAL MANAGEMENT, LLC
   
 
By:
/s/ Mark J. Wattles
   
Name:
Mark J. Wattles
   
Title:
President
   
   
 
HKW TRUST
   
 
By:
/s/ Mark J. Wattles
   
Name:
Mark J. Wattles
   
Title:
Trustee
   
   
 
/s/ Mark J. Wattles
 
Mark J. Wattles
   
 
/s/ James A. Marcum
 
James A. Marcum
   
 
/s/ Elliott Wahle
 
Elliott Wahle
   
 
/s/ Don R. Kornstein
 
Don R. Kornstein
   
 
/s/ Anthony Bergamo
 
Anthony Bergamo
   
 
/s/ Alexander M. Bond
 
Alexander M. Bond

 
EX-99.2 3 ex992sc13da107181002_022508.htm FORM OF INDEMNIFICATION AGREEMENT ex992sc13da107181002_022508.htm
Exhibit 99.2
 
Wattles Capital Management, LLC
7945 W. Sahara Avenue, Suite 205
Las Vegas, NV 89117

February __, 2008
 
_______________
_______________
_______________



Re:           Circuit City Stores, Inc.
 
Dear _______:
 
Thank you for agreeing to serve as a nominee for election to the Board of Directors of Circuit City Stores, Inc. (“Circuit City”) in connection with the proxy solicitation or consent solicitation that Wattles Capital Management, LLC (“Wattles”) and its affiliates are considering undertaking to elect directors (the “Wattles Solicitation”).  Your outstanding qualifications, we believe, will prove a valuable asset to Circuit City and all of its stockholders.  This letter will set forth the terms of our agreement.
 
Wattles agrees to indemnify and hold you harmless against any and all claims of any nature, whenever brought, arising from the Wattles Solicitation and any related transactions, irrespective of the outcome; provided, however, that you will not be entitled to indemnification for claims arising from your own criminal actions, fraud, negligence, bad faith or willful misconduct.  This indemnification will include any and all (each, a “Loss”) losses, liabilities, damages, demands, claims, suits, actions, judgments, or causes of action, assessments, costs and expenses, including, without limitation, interest, penalties, reasonable attorneys’ fees, and any and all reasonable costs and expenses incurred in investigating, preparing or defending against any litigation, commenced or threatened, any civil, criminal, administrative or arbitration action, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation asserted against, resulting, imposed upon, or incurred or suffered by you, directly or indirectly, as a result of or arising from the Wattles Solicitation and any related transactions.
 
In the event of a claim against you pursuant to the prior paragraph or the occurrence of a Loss, you shall give Wattles written notice of such claim or Loss.  Upon receipt of such written notice, you shall be permitted to select counsel to represent you.  Such counsel shall be reasonably acceptable to Wattles.  In addition, you will be reimbursed promptly for all Losses suffered by you, including reasonable attorneys’ fees, as incurred as provided herein.  Wattles may not enter into any settlement of loss or claim without your consent unless such settlement includes a release of you from any and all liability in respect of such claim.  You may not enter into any settlement of loss or claim without the written consent of Wattles, which consent will not be unreasonably withheld.
 
 
 
 

 

 
If you agree to the foregoing terms, please sign below to indicate your acceptance.
 

 
Very truly yours,
 
Wattles Capital Management, LLC
 
By:
 
 
 
Managing Member

 

 
ACCEPTED AND AGREED:
 
_________________________
 

 
EX-99.3 4 ex993sc13da107181002_022508.htm FORM OF COMPENSATION AGREEMENT ex993sc13da107181002_022508.htm
Exhibit 99.3
 
Wattles Capital Management, LLC
7945 W. Sahara Avenue, Suite 205
Las Vegas, NV 89117

 
February __, 2008
 
_____________
_____________
_____________

Dear ________:

This letter sets forth our mutual agreement with respect to compensation to be paid to you for your agreement to be named and serve as a nominee of Wattles Capital Management, LLC (“Wattles Capital”) for election as a director of Circuit City Stores, Inc. (the “Company”) at the Company’s 2008 annual meeting of stockholders, or any other meeting of stockholders held in lieu thereof, and any adjournments, postponements, reschedulings or continuations thereof (the “Annual Meeting”).
 
In consideration of your agreement (i) to be named and serve as a nominee of Wattles Capital for election as a director of the Company at the Annual Meeting and (ii) to serve as a director of the Company, if elected at the Annual Meeting, Wattles Capital hereby agrees to pay you $50,000 in cash upon the submission by Wattles Capital of a letter to the Company nominating you for election as a director of the Company (with such payment to be made as soon as reasonably practicable after you have been nominated).  You hereby agree to use such compensation (net of any estimated tax payments) to acquire securities of the Company (the “Nominee Shares”) at such time that you shall determine, but in any event no later than 10 days after the submission of the nomination letter by Wattles Capital to the Company.  If elected or appointed to serve as a director of the Company’s Board, you agree not to sell, transfer or otherwise dispose of any Nominee Shares within two (2) years of your election or appointment as a director; provided, however, in the event that the Company enters into a business combination with a third party, you may sell, transfer or exchange the Nominee Shares in accordance with the terms of such business combination.
 
The validity, interpretation, construction and performance of this letter agreement shall be governed by the laws of the State of New York, without regard to its principles of conflict of laws, and by applicable laws of the United States.  The parties hereto consent to the jurisdiction of the New York State and United States courts located in New York County, New York for the resolution of any disputes hereunder and agree that venue shall be proper in any such court notwithstanding any principle of forum non conveniens and that service of process on the parties hereto in any proceeding in any such court may be effected in the manner provided herein for the giving of notices.  The parties hereto waive trial by jury in respect of any such proceeding.
 
 
 
 

 
 
This letter agreement shall bind and inure to the benefit of you and your heirs, successors and assigns.
 
This letter agreement may be executed in counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and the same instrument.
 

WATTLES CAPITAL MANAGEMENT, LLC
 
 
By:
 
 
Name:
 
Title:  Managing Member


 

Accepted and Agreed to:

__________________________________________

 
 
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