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SEVERANCE AGREEMENT AND RELEASE
 th
 Recitals
   Agreement
  1 Continuation of Pay.
 ASOP match
    
    $
    4,786.2940IK 4th Qtr. match
    
    $
    475.8040IK discretionary match
    
    $
    1,011.52
 st
 2. Agreement Confidentiality.
 A.
    
    Moffatt may tell, on condition of confidentiality, his immediate family,
appropriate governmental agencies, such as the Internal Revenue Service, Bankruptcy trustee, his
 SEVERANCE AGREEMENT AND RELEASE -Moffatt
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investment adviser, attorneys, and accountant; and any other person he
is required to tell by law or must do so to effectuate this Agreement.B.
    
    Moffatt may disclose relevant information regarding the terms and conditions of
this Agreement in response to a validly executed and served subpoena or other
court order. However, in so responding. Moffatt will advise the court and
all interested parties of the existence and substance of this
confidentiality agreement and will take all reasonable steps necessary to
limit his disclosure of confidential information governed by this
Agreement. Moffatt will further advise (in any reasonable manner given the
circumstances) Hastings of his receipt of subpoena or court order within
three business days.
  3. Release.
 Age Discrimination in Employment Act, et seq.,
 4. COBRA.
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5. No Admission of Fault on Behalf of Hastings.
 6. Complete Agreement.
 7. Acknowledgment of Right to Seek Counsel.
 8. Choice of Forum and Venue.
 9. Time to Sign and Revoke Agreement.
  10. Confidentiality and Non-Disclosure Following Termination.
 A.
    
    Moffatt and his immediate family shall not, without the prior written consent of
Hastings or as required by subpoena or order of a court of competent
jurisdiction or governmental body or agency, directly or indirectly:
 (i)
    
    disclose, divulge, furnish or make accessible to
any person, or copy, take or use in any manner, any of the Proprietary
and Confidential Information of Hastings;
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AGREEMENT AND RELEASE -Moffatt
 
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(ii)
    
    take any action that might reasonably or forcseeably be expected
to compromise the confidentiality or proprietary nature of any of the
Proprietary and Confidential Information of Hastings;(iii)
    
    fail to follow the reasonable guidelines established by
Hastings from time to time and furnished to Moffatt regarding the
confidential and proprietary nature of the Proprietary and Confidential
Information; or(iv)
    
    discuss or disclose information relating to his employment or
matters or issues relating to the Company.
 B.
    
    Moffatt agrees to return all documents, discs, files, software, compilations
of information, or any other materials provided or made available to him by Hastings
(including all copies of any such material) that contain Proprietary and
Confidential Information as defined by this Agreement.C.
    
    Proprietary and Confidential Information means all of the data, documents,
materials, information and ideas of Hastings, including, without limitation: any
and all applicant and employee records and information, customer and vendor records
and information, operation methods and information, marketing information and
strategies, accounting and financial information, internal publications and
memoranda, goodwill, this Agreement and its contents, computer systems, software,
and other matters considered proprietary or confidential by Hastings. Proprietary
and Confidential Information shall not include: (i) any information or material that
Moffatt can establish has become publicly available; (ii) any information or
material required to be disclosed by subpoena or order of a court of competent jurisdiction
or government agency or body; or (in) any otherwise confidential information or
material that Hastings Board of Directors allows to be disclosed by Moffatt, as
evidenced by the Boards written consent for such disclosure.D.
    
    Subject to the requirements regarding proprietary and Confidential
Information, Hastings agrees that Moffatt is not subject to any covenant not to compete.
 11 Assignment of Intellectual Property.
 A.
    
    Moffatt agrees that any idea, innovation, concept, useful article, software,
program, database, system, modification to an existing system or program, or other
analytical
tool he created or developed as part of his employment with Hastings (collectively
referred to as Development) shall be the sole exclusive property of Hastings,
and Moffatt agrees that he retains no intellectual property rights in any such
Development. As such, Moffatt expressly assigns to Hastings all right, title and
interest in any and all Developments, made or conceived solely or jointly by
Moffatt, whether or not such Developments are patentable, copyrightable, or protectable in
any other manner, that relate in any way to the business or operations of
Hastings.B.
    
    The assignment of any Development only applies to any Development(s) created
while Moffatt was employed by Hastings.
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12. Right to Injunctive Relief and Other Remedies.
 13. Notices
 Hastings Entertainment, Inc.c/o ,3601 Plains Blvd.Amarillo, Texas 79102Dave Moffatt2011
3rd Ave.Canyon, Tx 79015
  14. INDEMNITY.
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HASTINGS ENTERTAINMENT, INC.,a Texas corporationBy:
    [ILLEGIBLE]Title:
    Chairman President CEOon Behalf of the corporationEMPLOYEE/s/ Dave MoffattDAVE MOFFATT3-29-06Date
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HASTINGS ENTERTAINMENT,
INC.,
a Texas corporationBy:Title:on Behalf of the corporationEMPLOYEE/s/ Dave MoffattDAVE MOFFATTDate:

    3.29.06
 SEVERANCE
AGREEMENT AND RELEASE -Moffatt
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STATEMENT OF NON-REVOCATION
  /s/ Dave Moffatt
    
    4.5.06DAVE
MOFFATT
    
    DatePrint
Name & Title: Dave Moffatt
  SEVERANCE AGREEMENT AND RELEASE -Moffatt
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