Exhibit10.27**EMPLOYMENT AGREEMENT**     THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made the 5 day of Dec, 2005(the “Effective Date”), by and between HASTINGS ENTERTAINMENT, INC., a Texas corporation(“Company”) and Michael Rigby (“Executive”).WITNESSETH:     WHEREAS, Company and its affiliates are engaged in the retail sale of books, music,videos, periodicals, and software and the rental of videos; and     WHEREAS, Executive has expertise, experience and capability in the business of Company;     WHEREAS,Executive has agreed to serve Company as its SVP Merchandising;and     WHEREAS, Company desires to enter into this Agreement to provide severance and other benefitsfor Executive and obtain Executive’s agreements regarding confidentiality and post-employmentrestrictive covenants for Company; and     WHEREAS, Executive is willing to provide such agreements to Company.     NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, andfor other good and valuable consideration, the receipt and sufficiency of which consideration ismutually acknowledged by the parties, it is hereby agreed as follows:     1. Dutiesand Responsibilities. The duties and responsibilities of Executive are andshallcontinue to be of an executive nature as shall be required by Company in the conduct of itsbusiness.Executive’s powers and authority shall include all those presently delegated to him or suchother dutiesand responsibilities as from time to time may be assigned to him. Executive recognizes, thatduring hisemployment hereunder, he owes an undivided duty of loyalty to Company, and agrees to devotesubstantially all of his business time, skills, efforts, and attention to the performance ofsaid duties andresponsibilities and to use his best efforts to promote and develop the business of Company.     2. EmploymentTerm. Executive’s employment shall continue until terminated by eitherparty in accordance with Sections 4, 5, 6, or 7 herein. Except as may otherwise be expresslyprovidedherein, regardless of the basis of any termination, Executive’s obligations under Sections 10,11, 12, and13 hereof shall continue. Anything to the contrary notwithstanding, two (2) years from andafter theEffective Date either Company or Executive may terminate this Agreement upon thirty (30) dayswrittennotice to the other. In such event, the terms and provisions of this Agreement shall no longerbe effectiveas to either party.     3. Compensation and Benefits.     (a) BaseSalary. For services rendered by Employee under this Agreement, Company shallcompensate Employee in the annual amount of $170,000 (“Base Salary”) payable in equal semi monthlyinstallments during the term of this Agreement. This base salary will be reviewed on an annualbasis commencing August 2006 and may be adjusted upwards or downwards.
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     (b) Bonus. For each fiscal year during the term of this Agreement, Employee shall beeligiblefor a bonus payable based on the Company’s Corporate Officer Incentive Plan (“COIP”) at a 75%basesalary bonus level.     (c) Withholding. All compensation shall be paid net of such withholdings as Employeerequestsor as are required by applicable law, rule or regulation. Company shall periodically reviewEmployee’sBase Salary in an effort to assure Employee continued reasonable compensation for Employee’sservices.     (d) Stock Options. Ten Thousand (10,000) shares granted pursuant to Company’s stockoptionprogram guidelines.     (e) Business Expenses. Employee is authorized to incur reasonable and necessaryexpenses forpromoting the business of Company, including expenses for entertainment, travel and similaritems inaccordance with Company policy. Company will reimburse Employee for all such expenses uponthepresentation by Employee, from time to time, of an itemized account of such expenditure inconformancewith Company policy.     (f) Housing and Relocation Expenses. Company will provide its standard relocation andmovingexpenses from your current residence in Parkland, Florida. Company will assist Employee withduplicatehousing costs for a period equal to the lesser of twelve months or until Employee’s residencelocated inParkland, Florida is sold. During such period Company will reimburse Employee for the lesserof youractual monthly principal, interest, taxes and insurance payments for the lesser of such costsin eitherAmarillo, Texas or Parkland, Florida. In addition, Company will reimburse your realtorsalescommission not to exceed 6% in connection with the sale of your home in parkland, Florida. Youagreeto attempt to obtain a fee arrangement with a realtor providing for a 3-5% sales commission,if possible.     (g) Benefits. Subject to meeting eligibility provisions, if any, Employee shall beentitled to suchbenefits as the Board of Directors of Company may from time to time establish generally foremployeesof the Company. Such benefits shall be generally consistent with the benefits provided bycomparablefirms within Company’s industry and shall include, without limitation, vacation pay, sick paybenefitsand major medical coverage. The Company will also provide Employee with three (3) weeks ofpaidvacation per year and will pay for Employee’s attendance at reasonable trade organizationmeetings andseminars.     4. Termination by Company; Special Compensation.     (a) At any time, Company may terminate Executive’s employment for any reason. IfExecutive’s termination is other than pursuant to Section 5, Executive shall, subject to theotherprovisions of this Section 4, be entitled to the following Special Compensation (as that termis defined inthis Section 4) in lieu of any benefits available under any and all Company separation plansor policies. (b) For purposes of this Agreement, “Special Compensation” shall entitle Executive:   (i) to continue to receive for a period of eighteen (18) months from the date oftermination (the “Severance Period”) monthly compensation at the rate equal to themonthly amount of his base annual salary in effect at the date of termination ofemployment;   (ii) to receive a bonus, based on actual performance results, up to the 100% Performance
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   Percentage under the COIP throughout the Severance Period provided that theamount, if any, payable under such plan for the award period including the last dayof the Severance Period shall be pro rated based upon the number of months of theSeverance Period that fall within the award period and the total number of monthsin such award period;   (iii) to continue to receive throughout the Severance Period any executive medical,dental, life, and qualified or nonqualified retirement benefits which the Executivewas receiving or was entitled to receive at the time of termination, except thatlong term disability and short term disability benefits cease on the last dayworked;     (c) Company shall pay or cause to be paid the amounts payable under paragraph (b)(i) abovein equal installments, monthly in arrears, and the amount payable under paragraph (b)(ii) inaccordancewith the terms of such plan. All payments pursuant to this Section shall be subject toapplicable federaland state income and other withholding taxes.     (d) In addition to the Special Compensation described above, Executive shall also be entitledto any vacation pay for vacation accrued by Executive in the calendar year of termination butnot takenat the time of termination.     (e) In the event Executive becomes employed full time during the Severance Period,Executive’s entitlement to continuation of the benefits described in paragraph (b)(iii) shallimmediatelycease, however, Executive shall retain any rights to continue medical insurance coverage undertheCOBRA continuation provisions of the group medical insurance plan by paying the applicablepremium.     (f) The payments and benefits provided for in this Section shall be in addition to all othersums then payable and owing to Executive hereunder and, except as expressly provided herein,shallnot be subject to reduction for any amounts received by Executive for employment or servicesprovided after termination of employment hereunder, and shall be in full settlement andsatisfactionof all of Executive’s claims and demands.     (g) In all events, Executive’s right to receive Special Compensation and/or other benefitspursuant to this Section shall cease immediately in the event Executive is reemployed byCompany or anaffiliate or Executive breaches any provision of Sections 10, 11, 12 or 13 hereof. In allcases, Company’srights under Section 14 shall continue.     (h) In the event that the Special Compensation is determined to be an “excess parachutepayment” under section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) or anysuccessor provision, subject to the excise tax imposed by section 4999 of the Code or any successorprovision (the “Excise Tax”), Company agrees to pay to Executive an additional sum (the “Gross Up”)in an amount such that the net amount retained by Executive, after receiving both the SpecialCompensation and the Gross Up and after paying: (i) any Excise Tax on the Payment and the Gross Up,and (ii) any Federal, state and local income taxes on the Gross Up, is equal to the amount of theSpecial Compensation.     For purposes of determining the Gross Up, Executive shall be deemed to pay state and localincome taxes at the highest marginal rate of taxation in his filing status for the calendar year inwhich the Special Compensation is to be made based upon Executive’s domicile on the date of thepayment. The determination of whether such Excise Tax is payable and the amount of such Excise Taxshall be based upon the opinion of tax counsel selected by Company subject to the approval ofExecutive. If such opinion
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is not finally accepted by the Internal Revenue Service, then appropriate adjustments shall becalculated (with Gross Up, if applicable) by such tax counsel based upon the final amount ofExcise Tax so determined. The final amount shall be paid, if applicable, within thirty (30) daysafter such calculations are completed.     5. Voluntary Resignation by Executive; Termination for Cause; Total Disability; Death.Upon termination of Executive’s employment by either Voluntary Resignation, or Termination forCause (as those terms are defined in this Section 5), Executive shall have no right tocompensation, severance pay or other benefits described herein but Executive’s obligations underSections 10, 11, 12 and 13 hereof shall continue. Upon termination for total disability, Executivesobligations under Sections 10, 11, 12, and 13 hereof shall continue.(a) Voluntary Resignation by Executive. At any time, Executive has the right, by writtennoticeto Company, to terminate his services hereunder (“Voluntary Resignation”), effective as ofsixty (60)days after such notice. (b) Termination for Cause by Company. At any time, Company has the right to terminateExecutive’s employment for cause. Termination upon the occurrence of any of the followingshall bedeemed termination for cause (“Termination for Cause”):(i) fails to follow any material requirement, instruction, order or mandate ofany superior officer or the board of directors of Company;(ii) commits any dishonest act towards Company, its officers, employees or Board ofDirectors;(iii) engages in any activity involving fraud, dishonesty, moral turpitude ordereliction of duty; or(iv) materially violates Company’s policies or procedures.     Termination for failure to meet any material requirements, instruction, orders or mandates,or materially violating Company’s policies or procedures, unless willful, continuing andsubstantial, shall not be deemed a Termination for Cause. For Termination for Cause, writtennotice of the termination of Executive’s employment by Company shall be served upon Executive andshall be effective as of the date of such service. Such notice given by Company shall specify theact or acts of Executive underlying such termination.     (c) Total Disability. Upon the total disability of Executive, as disability is defined in thedisability policies and plans applicable to Executive, Executive shall have no right tocompensation orseverance pay described herein but shall be entitled to long term disability and other suchbenefitsafforded under Company’s applicable policies and plans.     (d) Death. Upon the death of Executive, Executive’s estate shall have no right to receivecompensation or other severance pay described herein, but shall be entitled to receive anybenefitsafforded under Company’s applicable policies and plans.     6. Resignation Following Constructive Discharge. If at any time, except inconnection with a termination pursuant to Sections 4, 5, or 7, Executive is ConstructivelyDischarged (as that term is
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defined in this Section 6) then Executive shall have the right, by written notice toCompany within sixty (60) days of such Constructive Discharge, to terminate his serviceshereunder, effective as of thirty (30) days after such notice. Executive shall in such event beentitled to the compensation and benefits as if such employment were terminated pursuant toSection 4 of this Agreement.     For purposes of this Agreement, Executive shall be “Constructively Discharged” upon theoccurrence of any one of the following events:     (a) Executive is removed from his position with Company other than as a result of Executive’sappointment to a position of equal or superior scope and responsibility; or     (b) Executive’s total compensation is reduced by more than 20% (other than across-the-boardreductions similarly affecting all executive officers of Company).     7. Effect of Change in Control.     (a) Upon a Change in Control, Executive will be entitled to a payment (the “Change of ControlGross-Up”) for all unexercised incentive stock options, and shares owned immediately prior to theChange of Control that were acquired as a result of incentive stock options exercised within 12months prior to the Change in Control and non-qualified options exercised within 18 months priorto the Change in Control. Payments will be determined separately for each option, and type ofoption, granted.     The Change of Control Gross-Up shall be determined in accordance with the following formula: (i) For all unexercised incentive stock optionsG =[((P = E) x N) x (1-L)]  ̧ (1-M)       Where G = Change of Control Gross-Up Payment         P = The price per share paid in the tender offer or merger agreementthat results in the Change in Control. If no such tender offer ormerger agreement occurs in connection with a Change in Control, thenthe price per share shall be determined by a majority ofdisinterested incumbent members of the Board of Directors ofCompany’s in office immediately prior to the Change in Control.         E = The exercise price per share of the incentive stock option.         N = The number of unexercised shares of such incentive stock option.         L = The long term capital gains tax rate (expressed as a decimal) ineffect for the calendar year in which the Change of Control Gross-Upis to be made.         M = The highest marginal rate (expressed as a decimal) of taxation inthe Executive’s filing status for the calendar year in which theChange of Control Gross-Up is to be made.
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     (ii) For all Incentive Stock Options exercised within the 12-month period prior to theChange in Control and owned by Executive immediately prior to the Change in Control.         G = [((P - F) x Q) x(l-L)]  ̧ (l-M)       Where G = Change of Control Gross-Up Payment         P = The price per share paid in the tender offer or merger agreement thatresults in the Change in Control. If no such tender offer or mergeragreement occurs in connection with a Change in Control, then the priceper share shall be determined by a majority of disinterested incumbentmembers of the Board of Directors of Company’s in office immediately priorto the Change in Control.         F = The exercise price of such option.         Q = The number of shares exercised in such Incentive Stock Option.         L = The long term capital gains tax rate (expressed as a decimal) ineffect for the calendar year in which the Change of Control Gross-Up is tobe made.         M = The highest marginal rate (expressed as a decimal) of taxation in theExecutive’s filing status for the calendar year in which the Change ofControl Gross-Up is to be made.                  (iii) For all non-qualified stock options exercised within the 18-month period prior to theChange in Control and owned by Executive immediately prior to the Change in Control.         G = [((P-V) x Q) x (l-L)] ̧ (l-M)       Where G = Change of Control Gross-Up Payment         P = The price per share paid in the tender offer or merger agreement thatresults in the Change in Control. If no such tender offer or mergeragreement occurs in connection with a Change in Control, then the priceper share shall be determined by a majority of disinterested incumbentmembers of the Board of Directors of Company in office immediately priorto the Change in Control.         V = The fair market value of the stock at time of exercise of thenon-qualified option (determined as of the closing price of the stock onthe date such option is exercised).         Q = The number of shares exercised in such Incentive Stock Option.         L = The long term capital gains tax rate (expressed as a decimal) in effectfor the calendar year in which the Change of Control Gross-Up is to bemade.
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M = The highest marginal rate (expressed as a decimal) oftaxation in theExecutive’s Filing status for the calendar year in which the Change ofControl Gross-Up is to be made.     TheChange in Control Gross-Up for unexercised incentive stock options shall be paid upon surrender andcancellation of the incentive stock options. The Change in Control Gross-Up for incentive stock options exercisedin the 12-month period prior to the Change in Control and for non-qualified stock options exercised in the18-month period prior to the Change in Control shall be paid upon theChange in Control.     (b) “Change in Control” shall mean an event which shall be deemed to have occurred if: (i)a merger or consolidation of the Company with or into another corporation occurs in which the Company shall not bethe surviving corporation (for purposes of this definition, the Company shall not be deemed the survivingcorporation in any such transaction if, as the result thereof, it becomes a wholly-owned subsidiary of another corporation); (ii) a dissolution of the Company occurs; (iii) a transfer of all orsubstantially all of the assets or shares of stock of the Company in one transaction or a series of relatedtransactions to one or more other persons or entities occurs; (iv) if any “person” or “group” as those termsare used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the“Exchange Act”), other than Excluded Persons, becomes the “beneficial owner” (as defined in Rule 13d-3of the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more ofthe combined voting power of the Company’s then outstanding securities; or (v) during any period of twoconsecutive years commencing on or after January 1, 2000,individuals who at the beginning of the periodconstituted the Board cease for any reason to constitute at least a majority, unless the election of eachdirector who was not a director at the beginning of the period has been approved in advance by directorsrepresenting at least two-thirds (2/3) of the directors then in office who were directors at the beginning ofthe period. The term “Excluded Persons” means each of John H. Marmaduke, the John H. MarmadukeFamily Limited Partnership, the Stephen S. Marmaduke Family Limited Partnership, and the Estate ofSam Marmaduke, Deceased, and any person, entity, or group under the control of any of them, or atrustee or other fiduciary holding securities under an employee benefit plan of the Company.     A Change of Control shall include any other transactions or series of related transactionsoccurring which have substantially the same effect as the transactions specified in any of the precedingclauses of this Section 7.     (c) Except as otherwise specifically provided, amounts paid under this Section 7 shall bepaid, if applicable, within thirty (30) days after such calculations are completed.     8. Dispute Resolution. All disputes arising under this Agreement, other than those disputesrelating to Executive’s alleged violations of Sections 10 through 13 herein, shall be submitted toarbitration by the American Arbitration Association of Dallas, Texas. Costs of arbitration shall be borneequally by the parties. The decision of the arbitrators shall be final and there shall be no appeal from anyaward rendered. Any award rendered may be entered as a judgment in any court of competent jurisdiction.In any judicial enforcement proceeding, the losing party shall reimburse the prevailing party for itsreasonable costs and attorneys’ fees for enforcing its rights under this Agreement, in addition to anydamages or other relief granted. This Section 8 does not apply to any action by Company to enforceSections 10 through 13 of this Agreement and does not in any way restrict Company’s rights underSection 14 herein.
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     9. Enforcement. All reasonable legal fees paid or incurred by Executive pursuant to anydispute or question of interpretation relating to this Agreement shall be paid or reimbursed by Companyif Executive is successful pursuant to a legal judgment, arbitrationor settlement.     10. Confidential Information. Executive acknowledges that during the course of hisemployment he has learned or will learn or develop Confidential Information (as that term is defined inthis Section 10). Executive further acknowledges that unauthorized disclosure or use of suchConfidential Information, other than in discharge of Executive’s duties, will cause Company irreparable harm.     For purposes of this Section, Confidential Information means trade secrets (such as technical andnon-technical data, a formula, pattern, compilation, program, device, method, technique, drawing,process) and other proprietary information concerning the business of Company, or its affiliates, includingbut not limited to: pricing and financial information; computer programs; unpatented inventions,discoveries or improvements; marketing, manufacturing, or organizational research and development;business plans; sales forecasts; personnel information, including the identity of other employees ofCompany, their responsibilities, competence, abilities, and compensation; current and prospectivesuppliers’ lists and information on suppliers; information concerning planned or pending acquisitions ordivestitures; and information concerning purchases or leasing of major equipment or property, whichinformation: (a) has not been made generally available to the public; and (b) is useful or of value to thecurrent or anticipated business, or research or development activities of Company, or (c) has beenidentified to Executive as confidential by Company, either orally or in writing.     Except in the course of his employment and in the pursuit of the business of Company or any ofits subsidiaries or affiliates, Executive shall not, during the course of his employment, or for a period ofeighteen (18) months following termination of his employment for any reason, directly or indirectly,disclose, publish, communicate or use on his behalf or another’s behalf, any proprietary information ordata of Company or any of its subsidiaries or affiliates.     Executive acknowledges that Company operates and competes nationally, and that Companywill be harmed by unauthorized disclosure or use of Confidential Information regardless of where suchdisclosure or use occurs, and that therefore this confidentiality agreement is not limited to any single stateor other jurisdiction.     11. Non-Competition.     (a) Scope. During the effectiveness of this Agreement (the “Term”), Employee shall devotesubstantially of his business, time, attention and energies to the business and interests of Company, andshall not be engaged (whether or not during normal business hours) in any other business or professionalactivity (whether or not such activity is pursued for gain, profit or other pecuniary advantage) withoutfirst obtaining the written consent of the Board of Directors of Company. During the Term of and for aperiod of two years after the expiration or termination of this Agreement, for any reason or for no reasonat all, Employee shall not directly or indirectly:          (i) Own, have any interest in or be, serve or act as an individual proprietor, partner,agent, stock holder, officer, employee, consultant, director, jointventurer, investor, lender, or in anyother capacity whatsoever (other than as the holder of not more than one percent (1%) of the totaloutstanding stock of a publicly held company) of or with, or assist in any way, any corporation,partnership, firm or business enterprise at least 20% of whose sales (in dollar volume) are books, music
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or video sales or rentals (whether such book, music or video (includinggames) is new or pre-owned) (individually or in the aggregate with allaffiliates thereof) and which does business anywhere in theUnited States.          (ii) Solicit or induce, or attempt to induce, any employee or independentcontracter of Company or any other person who shall be in the service ofCompany to terminate his or her employment with or otherwise cease his or herrelationship with Company; or          (iii) Solicit divert or take away, or attempt to solicit, divert or takeaway, the business or patronage of any of the clients, customers (whether anysuch customer has done business once or more than once), suppliers or accounts,or prospective clients, customers or accounts, or suppliers to Company.     12. Inducement of Other Employees. For an eighteen (18) month period followingtermination of employment, Executive will not directly or indirectly solicit,induce or encourage any employee or agent of Company to terminate hisrelationship with Company.     13. Returnof Company’s Property. All notes, reports, sketches, plans,published memoranda or other documents created, developed, generated or held byExecutive during employment concerning or related to Company’s business, andwhether containing or relating to Confidential Information or not, are theproperty of Company and will be promptly delivered to Company upon terminationof Executive’s employment for any reason whatsoever. During the course ofemployment, Executive shall not remove any of the above property containingConfidential Information, or reproductions or copies thereof, or any apparatusfrom Company’s premises without authorization.     14. Remedies. Executive acknowledges that the restraints and agreements hereinprovided are fair and reasonable, that enforcement of the provisions ofSections 10, 11, 12 and 13 will not cause him undue hardship and that saidprovisions are reasonably necessary and commensurate with the need to protectCompany and its legitimate and proprietary business interests and property fromirreparable harm.     Executive acknowledges that failure to comply with the terms of this Agreementwill cause irreparable damage to Company. Therefore, Executive agrees that, inaddition to any other remedies at law or in equity available to Company forExecutive’s breach or threatened breach of this Agreement, Company is entitledto specifie performance or injunctive relief, without bond, against Executiveto prevent such damage or breach, and the existence of any claim or cause ofaction Executive may have against Company will not constitute a defensethereto. Executive further agrees to pay reasonable attorney fees and costs oflitigation incurred by Company in any proceeding relating to the enforcementof the Agreement or to any alleged breach thereof in which Company shallprevail in whole or in part.     In the event of a breach or a violation by Executive of any of the covenantsand provisions of this Agreement, the running of the Non-Compete Period (butnot of Executive’s obligation thereunder), shall be tolled during the periodof the continuance of any actual breach or violation.     15. EntireUnderstanding. This Agreement constitutes the entireunderstanding between the parties relating to Executive’s employment hereunderand while this Agreement is in effect supersedes all prior written and oralunderstandings and agreements with respect to such matters.     16.  No Attachment. Except as required by law, no right to receive paymentsunder this Agreement shall be subject to anticipation, commutation,alienation, sale, assignment, encumbrance,
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charge pledge, or hypothecation, or to execution, attachment, levy, or similar process orassignment operation of law, and any attempt, voluntary or involuntary, to affect any such actionshall be null, void, and of no effect.     17.  Binding Effect. This Agreement shall be binding upon and inure to the benefit of the partieshereto, Executive’s executors, administrators, legal representatives, heirs, successors, and assignsand the successors and assigns of Company. Company shall require any successor or assignee, whetherdirect or indirect, by purchase, merger, consolidation or otherwise,to all or substantially all thebusiness or assets of Company, expressly and unconditionally to assume and agree to performCompany’s obligations under this Agreement, in the same manner and to the same extent that Companywould be required to perform if no such succession or assignment had taken place.     18. Partial Invalidity. The various provisions of this Agreement are intended to be severableand to constitute independent and distinct binding obligations. Should any provision of thisAgreement be determined to be void and unenforceable, in whole or in part, it shall not be deemed toaffect or impair the validity of any other provision or part thereof, and such provision or partthereof shall be deemed modified to the extent required to permit enforcement. Without limiting thegenerality of the foregoing, if the scope of any provision contained in this Agreement is too broadto permit enforcement to its full extent, but may be made enforceable by limitations thereon, suchprovision shall be enforced to the maximum extent permitted by law, and Executive hereby agrees thatsuch scope may be judicially modified accordingly.     19. Strict Construction. The language used in this Agreement will be deemed to be the languagechosen by Company and Executive to express their mutual intent and no rule of strict constructionshall be applied against any person.     20. Waiver. The waiver of any party hereto of a breach of any provision of this Agreement by anyother party shall not operate or be construed as a waiver of any subsequent breach.     21. Notices. Any notice or other communication required or permitted to be given hereunder shallbe determined to have been duly given to any party (a) upon delivery to the address of such partyspecified below if delivered personally or by courier; (b) upon dispatch if transmitted by telecopyor other means of facsimile, provided a copy thereof is also sent byregular mail or courier; or(c) within forty-eight (48) hours after deposit thereof in the U.S. mail, postage prepaid, fordelivery as certified mail, return receipt requested, addressed, in any case to the party at thefollowing address(es) or telecopy numbers:         If to Executive:   If to Company:         Michael Rigby   Hastings Entertainment, Inc.  C/o Hastings Entertainment, Inc.   P.O. Box 35350  P.O. Box 35350   Amarillo, TX 79120  Amarillo, TX 79120   Facsimile: (806) 351-2299  Facsimile: (806) 351-2299   Attention: Corporate Secretaryor to such other address(es) or telecopy number(s) as any party may designate by written notice inthe aforesaid manner.     22. Governing Law. This Agreement shall be governed by, and interpreted, construed and
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enforced in accordance with, the laws of the State of Texas.     23. Gender. Wherever from the context it appears appropriate, each term stated ineither the singular of plural shall include the singular and the plural, and thepronouns stated in either the masculine, the feminine or the neuter gender shallinclude the masculine, feminine or neuter.     24. Headings. The headings of the Sections of this Agreement are for referencepurposes only and do not define or limit, and shall not be used to interpret orconstrue the contents of this Agreement.     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as ofthe date above set forth.         HASTINGS ENTERTAINMENT, INC.           By: /s/ John H. Marmaduke             John H. Marmaduke, President           /s/ Michael Rigby         Michael Rigby  
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