0001005794-08-000127 Sample Contracts

STIPULATION AND MUTUAL RELEASE
Stipulation and Mutual Release • April 24th, 2008 • Hancock Fabrics Inc • Retail-miscellaneous shopping goods stores • Delaware

THIS STIPULATION AND MUTUAL RELEASE (the "Stipulation") is made and entered into by and among the Mississippi State Tax Commission (the "Claimant"), and Hancock Fabrics, Inc., Hancock Fabrics of MI, Inc., HF Resources, Inc., Hancockfabrics.com, Inc., HF Merchandising, Inc., HF Enterprises, Inc., and Hancock Fabrics, LLC, debtors and debtors-in-possession (collectively, the "Debtors"), and the Official Committee of Unsecured Creditors and the Official Committee of Equity Security Holders (collectively, the "Committees"); as of this 16th day of April, 2008. The Claimant, the Debtors and the Committees are sometimes collectively referred to herein as the "Parties" and individually as a "Party."

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