0000950144-08-001146 Sample Contracts

SEVERANCE AGREEMENT for Gail Moore
Severance Agreement • February 19th, 2008 • Hancock Fabrics Inc • Retail-miscellaneous shopping goods stores

THIS AGREEMENT between Hancock Fabrics, Inc., a Delaware corporation (the “Corporation”), and Gail Moore whose address is One Fashion Way, Baldywn, MS 38824 (the “Executive”), dated as of June 12, 2006

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RATIFICATION AND AMENDMENT AGREEMENT
Ratification and Amendment Agreement • February 19th, 2008 • Hancock Fabrics Inc • Retail-miscellaneous shopping goods stores

This RATIFICATION AND AMENDMENT AGREEMENT (this “Ratification Agreement”), dated as of March ___, 2007, is by and among HANCOCK FABRICS, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Parent”), HF MERCHANDISING, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Merchandising”), HANCOCK FABRICS OF MI, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Fabrics MI”), HANCOCKFABRICS.COM, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Fabrics.com”), HANCOCK FABRICS, LLC, a Delaware limited liability company, as Debtor and Debtor-in-Possession (“Fabrics LLC”, and together with Parent, Merchandising, Fabrics MI and Fabrics.com, each individually a “Borrower” and collectively, “Borrowers”), HF ENTERPRISES, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Enterprises”), HF RESOURCES, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Resources”, and together with Enterprises, each individu

AMENDMENT NO. 1 TO RATIFICATION AND AMENDMENT AGREEMENT AND AMENDMENT NO. 7 TO LOAN AND SECURITY AGREEMENT
Loan and Security Agreement • February 19th, 2008 • Hancock Fabrics Inc • Retail-miscellaneous shopping goods stores

AMENDMENT NO. 1 TO RATIFICATION AND AMENDMENT AGREEMENT AND AMENDMENT NO. 7 TO LOAN AND SECURITY AGREEMENT, dated as of April 19, 2007 (this “First Ratification Amendment”), by and among HANCOCK FABRICS, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Parent”), HF MERCHANDISING, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Merchandising”), HANCOCK FABRICS OF MI, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Fabrics MI”), HANCOCKFABRICS.COM, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Fabrics.com”), HANCOCK FABRICS, LLC, a Delaware limited liability company, as Debtor and Debtor-in-Possession (“Fabrics LLC”, and together with Parent, Merchandising, Fabrics MI and Fabrics.com, each individually a “Borrower” and collectively, “Borrowers”), HF ENTERPRISES, INC., a Delaware corporation, as Debtor and Debtor-in-Possession (“Enterprises”), HF RESOURCES, INC., a Delaware corporation, as Debtor and Debtor-in-Po

May 9, 2007 Kathleen Kennedy 2519 Woodgreen Dr. Belden, MS 38826 Severance Agreement Dear Kathleen:
Severance Agreement • February 19th, 2008 • Hancock Fabrics Inc • Retail-miscellaneous shopping goods stores

Effective with the close of business on Wednesday, May 9, 2007, your “Severance Date”) your employment with Hancock Fabrics, Inc. (the “Company”) is terminated.

AMENDED AND RESTATED DEPOSIT ACCOUNT CONTROL AGREEMENT
Deposit Account Control Agreement • February 19th, 2008 • Hancock Fabrics Inc • Retail-miscellaneous shopping goods stores • Mississippi

THIS AMENDED AND RESTATED DEPOSIT ACCOUNT CONTROL AGREEMENT (“Amended Agreement”) is dated May 24, 2007 (but effective as of the Effective Date) by and among BancorpSouth Bank (together with its successors and assigns, “Bank”), Hancock Fabrics, Inc. (together with its successors and assigns, the “Company”) and Wachovia Bank, National Association, in its capacity as agent pursuant to the Loan Agreement (as hereinafter defined) acting for and on behalf of the parties thereto as lenders (in such capacity, together with its successors and assigns, “Agent”).

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