Document:

exv10w22

 

Exhibit 10.22

SEVERANCE AGREEMENT AND RELEASE

     This Severance Agreement and Release (“Agreement”) is entered into as of the 19th day of
March, 2005 (the “Effective Date”). The parties to this Agreement are Hastings Entertainment, Inc.
(“Hastings” or the “Company”) and Robert Berman (“Berman”).

Recitals

     1. Berman
has been employed by Hastings as Vice President of Store Operations.
Berman has voluntarily resigned his employment with Hastings
effective March 19, 2005, in order
to pursue other business opportunities.

     2. Hastings and Berman do not anticipate that there will be any dispute between them or
legal claims arising out of Berman’s separation from the Company, but nevertheless desire to
settle fully and finally any and all differences, causes of action, claims, or disputes that might
otherwise arise out of Berman’s employment with the Company.

Agreement

     IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN, IT IS AGREED AS FOLLOWS:

     1. Temporary
Continuation of Pay. Hastings will continue to pay Berman his regular
salary through March 31, 2005. These payments will be issued through the Company’s payroll less
all applicable taxes and withholding. Berman will receive his vested employee benefits
(including the bonus payable for the period ending January 31, 2005 and three (3) weeks of vacation pay).

     2. Severance
Benefits. Following his final date of employment, Hastings agrees to pay Berman a
sum equal to twelve (12) months of his current base salary plus bonus computed at his bonus
percentage for such period based upon an assumed achievement of 100%, equal to $240,000.00, payable
in one lump sum less all applicable taxes and withholding. This payment will be made on or before
April 15, 2005.

     3. COBRA
Payments. The Company will pay Berman’s (including his spouse)
COBRA costs for a period of fifteen (15) months. Hastings will pay all costs directly through
its third party administrator.

     4. Options. Any unvested Options granted pursuant to Option Grant No’s 500, 551,
605, 606, 671, and 672 will be vested as of April 1, 2005, and all Options under such grants must
be exercised on or before June 30, 2005. Any option shares under such grants not exercised by
such date will expire. All other Options Grants remain in force as written.

	 	 	 
	SEVERANCE AGREEMENT AND RELEASE

	 	Page 1

 

 

     5. Return
of Property. Berman agrees to return to the Company any property owned
by the Company in a timely manner.

     6. Agreement
Confidentiality. Berman represents and agrees that the existence, terms
and conditions of this Agreement shall be kept strictly and completely confidential subject
only to the following exceptions:

	 	A.	 	Berman may tell, on condition of confidentiality, his immediate
family, appropriate governmental agencies, such as the Internal Revenue Service,
Bankruptcy trustee, his 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.	 	Berman 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, Berman 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.

     The phrase, “terms and conditions of this Agreement” means those terms and conditions that
appear on the face of the Agreement and any and all discussions, information and documentation
used, generated and/or relied upon in producing this Agreement. Except to the extent necessary to
enforce this Agreement, it is further agreed that neither this Agreement nor any part thereof is
to be used or admitted into evidence in any proceeding of any character, judicial or otherwise,
now pending or hereafter instituted.

     7. Release. In consideration of the severance pay, severance benefits, and other
promises contained herein, and as a material inducement to Hastings to enter into this
Agreement, Berman hereby irrevocably and unconditionally releases, acquits, forever discharges, and
agrees to hold harmless Hastings and its agents, assigns, directors, officers, employees,
representatives, attorneys, divisions, subsidiaries, affiliates and all persons acting by, through, under, or
in concert with any of them (hereinafter “the releasees”), from any and all claims, causes of action,
demands or liabilities whatsoever, whether known or unknown or suspected to exist by Berman that he ever
had or may now have against the releasees, or any of them, including, without limitation, any
claims, causes of action, demands, or liabilities in connection with
either Berman’s employment with
the Company or his resignation from the Company. This Agreement expressly covers, but is not
limited to, any claims that Berman may have raised under any state or federal statutory or common law
prohibiting discrimination in employment on the basis of age, gender, disability, race,
national origin, religion, “whistleblower” or on any other basis prohibited by law including claims
arising under Title VII of the Civil Rights Act of 1964, Section 21.051 of the Texas Labor Code, and
the Americans with Disabilities Act.

	 	 	 
	SEVERANCE AGREEMENT AND RELEASE

	 	Page 2

 

 

     In
addition and in consideration of the promises contained in this Agreement, Berman
hereby waives, releases and forever discharges, and agrees that he will not in any manner
institute, prosecute, or pursue, any complaint, claim, charge, demand, or suit, whether in law or
in equity, which asserts or could assert at common law or any statute, rule or any grounds
whatsoever, any claim or claims under the federal Age Discrimination in Employment Act, 29 U.S.C.
§621 et seq; against any one or all of the releasees with respect to any event, matter, claim,
damage, or injury, whether known or unknown, arising out of his employment and resignation of
employment with the Company and its subsidiaries and/or the execution of this Agreement.

     8. Letter
of Recommendation. Hastings will execute a letter of recommendation on
Berman’s behalf which letter will be subject to reasonable approval by Berman. Hastings agrees
to supply up to ten original copies for Berman at his request. Any subsequent inquiry regarding
Berman’s employment and subsequent resignation will be addressed by supplying a copy of the
letter of recommendation or otherwise communicating its content.

     9. Reasonable
Assistance & Cooperation. In consideration of the severance payment
and other benefits provided to Berman in this Agreement, Berman agrees to provide reasonable
assistance and cooperation to Hastings regarding certain items and areas over which he managed
or otherwise worked on while employed at the Company, not to exceed twenty (20) hours per month
or a total of 100 hours overall. Berman acknowledges and agrees that his receipt of the
severance payment and other benefits provided for in this Agreement are contingent upon his good faith
efforts to provide reasonable assistance and cooperation during the transition period identified in
paragraph 1 above and thereafter.

     10. COBRA. Berman hereby acknowledges that Hastings or its authorized designee has
advised him that pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985
(COBRA) he has the right to elect continued coverage under the Company’s group health plan at
his own expense once Hastings stops paying for his health insurance under paragraph 3. Such
election must be made no later than sixty (60) days after his resignation.

     11. No
Admission of Fault on Behalf of Hastings. This Agreement shall not in anyway
be construed as an admission by Hastings, its agents, employees, directors, officers,
representatives, or assigns, or its subsidiaries, of any act of
wrongdoing whatsoever against Berman or any
other person.

     12. Complete
Agreement. This Agreement sets forth the entire agreement between the
parties hereto and fully supersedes any and all prior agreements or understandings between the
parties hereto pertaining to the subject matter hereof.

     13. Acknowledgment
of Right to Seek Counsel. Berman acknowledges that he has a
complete and unequivocal right to seek legal advice and/or representation from any attorney of
his choice regarding the matters set forth in this Agreement. Berman acknowledges that he has
either

	 	 	 
	SEVERANCE AGREEMENT AND RELEASE

	 	Page 3

 

 

consulted with counsel and is satisfied with the representation he received with respect to this
Agreement, or he acknowledges that he has knowingly and voluntarily
waived his right to seek legal
representation.

     14. Choice
of Forum and Venue. The terms of this Agreement shall be construed in
accordance with the laws of the State of Texas. Any proceeding brought to enforce or interpret
this Agreement shall be brought in Potter County, Texas.

     15. Time
to Sign and Revoke Agreement. In accordance with the Older Workers
Benefit Protection Act, 29 U.S.C. §626(f)(l), Berman acknowledges and agrees that he has the
right to examine the terms of this Agreement for twenty-one (21) calendar days from the date he
first received this Agreement before executing the Agreement, but has chosen to waive this right.

     Berman understands that for a period of seven (7) calendar days after he executes this
Agreement he has the right to revoke it and this Agreement shall not become effective and
enforceable until after the passage of this seven day period without Berman having revoked it.
Non-revocation shall be evidence by an executed copy of the attached Statement of Non-Revocation.
This Agreement may not be revoked after the seven day period.

     16. Confidentiality, Non-Disclosure Following Termination and Covenant Not to
Compete. Berman acknowledges and stipulates that: 1) during the time he worked for Hastings,
he was placed in a position to become acquainted with Hastings’ Proprietary and Confidential
Information (defined below); 2) the use or disclosure of Proprietary and Confidential
Information by Berman, except as expressly authorized by Hastings, is prohibited and would seriously damage
Hastings; 3) in addition to being given access to Proprietary and Confidential Information,
Berman received material benefits as a result of his employment, including compensation and
experience; and 4) in addition to the foregoing, Berman is being given the severance benefits described in
Paragraph 2, 3 and 4. Therefore, Berman agrees as follows:

	 	A.	 	Berman shall not, without the prior written consent of
Hastings, 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;
	 
	 	(ii)	 	take any action that might reasonably or
foreseeably 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 regarding the confidential
and proprietary nature of the Proprietary and Confidential Information;
or

	 	 	 
	SEVERANCE AGREEMENT AND RELEASE

	 	Page 4

 

 

	 	(iv)	 	divulge, furnish or make accessible to any other employee of Hastings a
copy of this Agreement, or in any other manner divulge the contents
thereof.

	 	B.	 	Berman 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 Berman
can establish has become publicly available; (ii) any information or material
required to be disclosed by order of a court of competent jurisdiction; or (iii)
any otherwise confidential information or material that Hastings’ Board of
Directors allows to be disclosed by Berman, as evidenced by the Board’s
written consent for such disclosure.
	 
	 	D.	 	Covenant Not to Compete.
	 
	 	(a)	 	Length of Time and Area. (1) For a period of two (2) years after the Effective Date, Berman
shall not accept any position, where the performance of duties in that position will involve
managing, controlling, participating in, investing in, acting as consultant or advisor to,
rendering services for, or otherwise assisting any person or entity that engages in or owns
any business that derives a material portion of its revenues from the
retail multi-media
entertainment business. For purposes of this Agreement, “retail multi-media entertainment
business” includes the businesses involved in any one or more of the following: the sale of
books, the sale of pre-recorded music, the sale of pre-recorded video tapes, the sale of
software, or the rental of pre-recorded video tapes (whether any such product is new or
used). A material portion shall mean that ten percent (10%) or more of such person’s or
entity’s (including its affiliates) revenues is derived from the retail multi-media
entertainment business. This non-competition agreement is limited to any person or entiry
that operates in states in which Hastings operates as of the Effective Date.

	 	 	 
	SEVERANCE AGREEMENT AND RELEASE

	 	Page 5

 

 

	 	(b)	 	This section shall not prevent Berman from using general skills and experience
developed during employment with Hastings or other Hastings; or from accepting a
position of employment with another company, firm, or other organization which
competes with Hastings, if its business is diversified and Berman is employed in a
part of the business that is not related to the multi-media entertainment
business and provided that such position does not require or permit the disclosure
or use of Proprietary and Confidential Information.
	 
	 	(c)	 	The ownership by Berman of ten percent (10%) or less of a publicly-traded class
of securities shall not be deemed a violation of this Section 16.
	 
	 	(d)	 	Reasonableness of Limitations. Berman acknowledges and agrees that the
covenant not to compete contained this Section 16 is ancillary to or part of this
Severance Agreement and Release and that the limitations contained in this covenant
not to compete (1) are reasonable limitations as to time, geographical area, and
scope of activity to be restrained; (2) do not impose a greater restraint than is
necessary to protect the business interests of Hastings, which, not by limitation,
include the Proprietary and Confidential Information; and (3) will not create a
hardship on Berman.
	 
	 	(e)	 	Partial Invalidity. If for any reason any court of competent jurisdiction
determines that the restrictions contained in this covenant not to compete are not
reasonable, that the consideration is inadequate, or that Berman has been
prevented from earning a livelihood, such restrictions should be interpreted,
modified, or rewritten to include as much of the duration, scope, and geographic
area identified in this Section 16 as will render such restrictions valid and
enforceable.
	 
	 	(f)	 	Nonsolicitation of Employees. For a period of two (2) years following the
Effective Date, Berman shall not directly solicit, encourage, or induce any
other employees of Hastings to terminate employment with Hastings or
employ or offer employment to any such other employee of Hastings.

     17. Assignment
of Intellectual Property.

	 	A.	 	Berman 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 Berman agrees that he retains no intellectual property rights in any
such Development. As such, Berman

	 	 	 
	SEVERANCE AGREEMENT AND RELEASE

	 	Page 6

 

 

	 	 	 	expressly assigns to Hastings all right, title and interest in any and all Developments,
made or conceived solely or jointly by Berman, 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 Berman was employed by Hastings.
	 
	 	C.	 	To the extent Berman claims that any Development was his own intellectual
property prior to the date he began his employment with Hastings, Berman
agrees to list such Development below, with a brief description that is
sufficient to allow the parties to easily identify what Berman claims as his
own. Berman claims the following Development(s) as his own creation prior
to the date he began his employment with Hastings, and does not assign his
right, title and interest in such Development(s) to Hastings:
	 
	 
	 	 	NONE
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 
	 
	 	 	 
	 	 	 	(Write “NONE” if no prior Developments exist).
	 
	 	D.	 	Excluded from Berman’s assignment of his Developments are the following,
which Berman cannot assign to Hastings because of a prior agreement with
                                        ,
which is effective until                    .
	 
	 
	 	 	NONE
	 
	 	 	 
	 
	 	 	 
	 	 	 	(Write “NONE” if no prior agreements exist).
	 
	 	E.	 	Hastings and its licensees are not required to designate Berman as the author or creator of
any Development assigned in this paragraph 15 when distributing the Development publicly or
otherwise. To the extent Berman writes any article in any publication or trade journal
referencing or relating to any Development, the article shall be considered a joint work of
Hastings and Berman, shall recognize both Hastings and Berman as joint authors, and shall
include information identifying Berman as an employee of Hastings.

	 	 	 
	SEVERANCE AGREEMENT AND RELEASE

	 	Page 7

 

 

     18. Right
to Injunctive Relief and Other Remedies. If it is determined that
Berman has
breached any of the covenants contained in paragraphs 14, 16, or 17, Hastings may obtain an
injunction prohibiting such breach. Berman expressly stipulates and agrees that his
obligations under this Agreement are specifically enforceable by temporary and permanent injunctive relief.
Berman further agrees that Hastings shall not be required to post a bond in order to obtain
injunctive relief against Berman for violating any of the covenants contained in paragraphs 4,14, or 15, or if a
bond is required by law or by any court of competent jurisdiction, Berman hereby agrees to a bond in
the lowest amount permitted by law. Nothing in this paragraph shall be deemed to deny Hastings the
right to seek damages, or any other remedy that may be available, in addition to the
injunctive provided herein.

     19. Notices.
All communications and notices between the parties hereto shall be given at
the following addresses:

Hastings Entertainment, Inc.

c/o Dave Moffatt, Vice-President Human Resources

3601 Plains Blvd.

Amarillo, Texas 79102

Robert Berman

                                        

Amarillo,
 Texas 79109

Notice under this Agreement will be considered to have been accomplished on the date the party
deposits in the United States Mail a copy of the notice at issue, which must be properly
addressed using the addresses identified in this paragraph, postage prepaid with adequate
postage thereon.

     20. INDEMNITY. BERMAN AGREES TO INDEMNIFY, RELEASE, DEFEND AND
HOLD HARMLESS HASTINGS AND ITS EMPLOYEES, AFFILIATES, AND ASSIGNS FROM
ANY AND ALL LIABILITY, CLAIMS, LOSSES, COSTS, ATTORNEYS’ FEES AND/OR
DAMAGES OF ANY SORT THAT ARISE OR RESULT FROM THE BREACH OF ANY
WARRANTIES OR REPRESENTATIONS MADE IN THIS AGREEMENT.

     HASTINGS AGREES TO INDEMNIFY, RELEASE, DEFEND AND HOLD HARMLESS BERMAN FROM ANY AND ALL
LIABILITY, CLAIMS, LOSSES, COSTS, ATTORNEYS’ FEES AND/OR DAMAGES OF ANY SORT THAT ARISE OR RESULT
FROM THE PERFORMANCE OF BERMAN’S DUTIES CONDUCTED IN GOOD FAITH WHILE ACTING ON HASTINGS’ BEHALF
OR THE BREACH OF ANY WARRANTIES OR REPRESENTATIONS MADE BY IT IN THIS
AGREEMENT.

	 	 	 
	SEVERANCE AGREEMENT AND RELEASE

	 	Page 8

 

 

     BY SIGNING BELOW, Berman ACKNOWLEDGES THAT HE HAS READ AND CAREFULLY CONSIDERED THIS
AGREEMENT AND UNDERSTANDS THAT IT IS A FULL RELEASE OF ALL CLAIMS KNOWN OR UNKNOWN. Berman
ACKNOWLEDGES AND AFFIRMS THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS CONCERNING THIS AGREEMENT
AND HE HAS HAD HIS QUESTIONS ANSWERED TO HIS COMPLETE SATISFACTION. Berman ACKNOWLEDGES THAT HE IS
SIGNING THIS AGREEMENT FREELY AND VOLUNTARILY.

	 	 	 
	 

	 	HASTINGS ENTERTAINMENT, INC, a Texas Corporation
	 
	 	 
	 

	 	By:     Dave
Moffatt
	 

	 	Title:  Vice
President Human Resources 
	 

	 	on Behalf of the Corporation
	 
	 	 
	

	 	EMPLOYEE
	 
	 	 
	 

	 	-s- Robert Berman

	 

	 	Robert Berman
	 

	 	     3-25-05

	 

	 	Date

State of   TEXAS     

County of  POTTER     

This instrument was acknowledged before

me on 25 day of march, 2005 by DAVE [ILLEGIBLE]-VP. HUMAN RESOURCES.

-s- LESLY A. BELLAH

Notary Public Signal

My commission Expiries 1-28-2009

STATEMENT OF NON-REVOCATION

     By signing below, I hereby verify that I have chosen not to revoke my
Agreement to and execution of the “Severance Agreement and Release” dated 3 -25 -
05 between myself and HASTINGS ENTERTAINMENT, INC. My signature below confirms my
continued agreement to the terms of that Agreement in all its particulars
including my release and waiver of any and all claims relating to my employment
and voluntary resignation of employment with HASTINGS ENTERTAINMENT, INC.

	 	 	 
	SEVERANCE AGREEMENT AND RELEASE

	 	Page 9

 

 

	 	 	 
	-s- Robert Berman

	 	      4-4-05
	 

	 	 
	Robert Berman

	 	Date
	 
	 	 
	ACCEPTED
BY: Dave Moffatt

	 	      4-8-05
	 

	 	 
	 

	 	Date
	Print Name & Title: Dave Moffatt
	 	 
	                                        VP HR
	 	 

NOTICE: DO NOT SIGN, DATE OR RETURN THIS DOCUMENT UNTIL EIGHT (8) DAYS AFTER YOU SIGN
THE “SEVERANCE AGREEMENT AND RELEASE.”exv10w23

 

Exhibit 10.23

FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

     This Fourth Amendment to Loan and Security Agreement (the “Fourth Amendment”) is made as of
this 11 day of July, 2005 by and among;

     Eleet
Retail Group, LLC. (formerly known as Fleet Retail Group. Inc.) (the
“Agent”), a
Delaware limited liability company with its principal executive offices at 40 Broad Street, Boston,
Massachusetts, for the Revolving Credit Lenders party to the Agreement (defined below), and

     The
CIT Group/Business Credit, Inc. (the “Co-Agent”), a New York corporation with offices at
300 S. Grand Avenue, 3rd Floor, Los Angeles, California 90071, and

     The Revolving Credit Lenders party to the Agreement, and

     Hastings Entertainment, Inc. (the “Borrower”), a Texas corporation with its principal
executive offices at 3601 Plains Boulevard, Amarillo, Texas
79102,

 in consideration of the mutual
covenants herein contained and benefits to be derived herefrom.

W I T N E S S E T H:

     WHEREAS, on August 29, 2000, the Agent, the Co-Agent, the Revolving Credit Lenders and the
Borrower entered in a certain Loan and Security Agreement which was amended pursuant to a certain
First Amendment to Loan and Security Agreement dated August 23, 2002. and pursuant to a certain
Second Amendment to Loan and Security Agreement dated December 9, 2003, and pursuant to a certain
Third Amendment to Loan and Security Agreement dated October 27, 2004 (as the same may have further
been amended from time to time, collectively, the “Agreement”); and

     WHEREAS, the Agent, the Co-Agent, the Revolving Credit Lenders and the Borrower desire to
modify certain provisions of the Agreement as set forth herein.

     NOW, THEREFORE, it is hereby agreed among the Agent, the Co-Agent, the Revolving Credit
Lenders and the Borrower as follows:

	1.	 	Capitalized Terms. All capitalized terms used herein and not otherwise
defined shall have the same meaning herein as in the Agreement.
	 
	2.	 	Amendment to Article 4. The provisions of Article 4 of the Agreement are hereby
amended by deleting Section 4-19(b) in its entirety and substituting the following in its
stead:

1

 

      “(b) Own, redeem, retire, purchase, or acquire any of the Borrower’s capital stock;
provided, however, (i) the Borrower may expend up to $15 Million to repurchase its capital stock,
provided that (A) no Event of Default has occurred or will result from such repurchase and (B)
Availability, for the 30 days prior to, and immediately after the day of such repurchase is not
less than the following:

	 	 	 	 	 
	Cumulative Repurchases ($Million)	 	Minimum
30 day Availability ($Million)
	Up to 2.5
	 	 	10.0	 
	Up to 5.0
	 	 	15.0	 
	Up to 15.0
	 	 	20.0	 

and (ii) Borrower may repurchase stock options issued under the Borrower’s employee stock
option plan for non-cash consideration consisting of restricted stock
of the Borrower.

	3.	 	Ratification of Loan Documents. Except as provided herein, all terms and conditions
of
the Agreement and the other Loan Documents remain in full force and effect. The
Borrower hereby ratifies, confirms, and reaffirms all representations, warranties, and
covenants contained therein and hereby represents that no Events of Default exist under
the Loan Documents. The Borrower further ratifies and confirms that any and all
Collateral previously granted to the Agent for the ratable benefit of the Revolving Credit
Lenders continues to secure the existing Liabilities as well as the Liabilities as amended
hereby, and any future Liabilities.
	 
	4.	 	Conditions to Effectiveness. This Fourth Amendment shall be become effective upon the
satisfaction of the following conditions precedent:

	 	a.	 	This Fourth Amendment shall have been duly executed and delivered by each of
the Borrower, the Revolving Credit Lenders and the Agent and shall be in full
force and effect.
	 
	 	b.	 	The Borrower shall have delivered to the Agent its Secretary’s Certificate
with
certified copies of (i) Incumbency Certificate; (ii) Specimen Signatures; and (iii)
Resolutions.
	 
	 	c.	 	All proceedings in connection with the transactions contemplated by this
Fourth
Amendment and all documents incident thereto shall be reasonably satisfactory in
substance and form to the Agent, and the Agent shall have received all
information and such counterpart originals or certified or other copies of such
documents as the Agent may reasonably request. Further, the Borrower shall
have delivered to the Agent such additional documents which the Agent may

2

 

	 	 	 	reasonably request, including, without limitation, a ratification by each guarantor
of their respective guaranties.
	 
	 	d.	 	The Borrower shall have paid all reasonable costs and expenses of the
Agent including, without limitation, all attorneys’ fees and expenses incurred by the
Agent in connection with the Agreement, the Loan Documents, and the preparation,
negotiation and execution of this Fourth Amendment.

	5.	 	Miscellaneous.

	 	a.	 	This Fourth Amendment may be executed in several counterparts and by each
party on a separate counterpart, each of which when so executed and delivered
shall be an original, and all of which together shall constitute one instrument.
	 
	 	b.	 	This Fourth Amendment expresses the entire understanding of the parties with
respect to the transactions contemplated hereby. No prior negotiations or
discussions shall limit, modify, or otherwise affect the provisions hereof.
	 
	 	c.	 	Any determination that any provision of this Fourth Amendment or any
application hereof is invalid, illegal or unenforceable in any respect and in any
instance shall not effect the validity, legality, or enforceability of such provision
in any other instance, or the validity, legality or enforceability of any other
provisions of this Fourth Amendment.
	 
	 	d.	 	The Borrower shall pay on demand all costs and expenses of the Agent,
including,
without limitation, reasonable attorneys’ fees in connection with the preparation,
negotiation, execution and delivery of this Fourth Amendment.
	 
	 	e.	 	The Borrower warrants and represents that the Borrower has consulted with
independent legal counsel of the Borrower’s selection in connection with this
Fourth Amendment and is not relying on any representations or warranties of any
Revolving Credit Lender or the Agent or their respective counsel in entering into
this Fourth Amendment.
	 
	 	f.	 	The Borrower acknowledges and agrees that the Borrower does not have any
claims, counterclaims, offsets, or defenses against any Revolving Credit Lender
or the Agent directly or indirectly relating to the Borrower’s relationship with,
and/or the Borrower’s Liabilities, and to the extent that the Borrower has or ever
had any such claims, counterclaims, offsets, or defenses against any of the
Revolving Credit Lenders or the Agent, the Borrower affirmatively WAIVES the
same. The Borrower, and for its representatives, successors and assigns, hereby
RELEASES, and forever discharges the Revolving Credit Lenders and the Agent
and their respective officers, directors, agents, servants, attorneys, and employees,
and their respective representatives, successors and assigns, of, to, and from all

3

 

known debts, demands, actions, suits, accounts, covenants, contracts, agreements, damages,
and any and all claims, demands, or liabilities whatsoever, of every name and nature, both at law
and in equity through the date hereof.

[remainder of page left intentionally blank]

4

 

     IN WITNESS WHEREOF, the parties have hereunto caused this Fourth Amendment to be executed
and their seals to be hereto affixed as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	HASTINGS ENTERTAINMENT, INC.	 	 
	 	 	(“Borrower”)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Dan Crow	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	DAN CROW	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	FLEET RETAIL GROUP, LLC	 	 
	 	 	(“Agent”)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Daniel Platt	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel Platt	 	 
	 

	 	 	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE CIT GROUP/BUSINESS CREDIT,
INC.	 	 
	 	 	(“Co-Agent”)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Adrian Avalos	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	ADRIAN AVALOS	 	 
	 

	 	 	 	Title:
	 	VP	 	 

5

 

	 	 	 	 	 	 	 	 	 
	 	 	The “Revolving Credit Lenders”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	FLEET RETAIL GROUP, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Daniel Platt	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Daniel Platt	 	 
	 

	 	 	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE CIT GROUP/BUSINESS CREDIT, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Adrian Avalos	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	ADRIAN AVALOS	 	 
	 

	 	 	 	Title:
	 	VP	 	 

6

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