Amendment and Renewal of Severance Agreement between Hancock Fabrics, Inc. and Executive (March 16, 2005)

Summary

This agreement is between Hancock Fabrics, Inc. and an executive, amending and renewing a previous severance agreement originally dated May 4, 2002. The renewal extends the agreement for three years, until May 4, 2008, and provides for automatic three-year renewals unless the company's board decides to cancel it at the end of any term. The agreement outlines the terms under which the executive would receive severance benefits if their employment ends under specified conditions.

EX-10.42 2 g12871exv10w42.htm EX-10.42 FORM OF AMENDMENTS AND RENEWALS OF SEVERANCE AGREEMENTS Ex-10.42

Exhibit 10.42

AMENDMENT AND RENEWAL OF SEVERANCE AGREEMENT

THIS AMENDMENT AND RENEWAL OF SEVERANCE AGREEMENT between Hancock Fabrics, Inc., a Delaware corporation (the “Corporation”), and (the “Executive”), dated as of the 16^th day of March, 2005.

WITNESSETH:

WHEREAS, the Corporation has entered into a Severance Agreement with the Executive dated May 4, 2002 which has subsequently been amended (as so amended, the “Severance Agreement”); and

WHEREAS, the Severance Agreement will expire on May 4, 2005; and

WHEREAS, the Corporation, for the reasons recited in the Severance Agreement, wishes to renew the Severance Agreement for a period of three years, until May 4, 2008 (“the Expiration Date”), and to automatically renew the Severance Agreement for an additional three year period on the Expiration Date and each subsequent expiration unless the Incumbent Board elects to cancel the agreement as of the next Expiration Date.

IN WITNESS WHEREOF, the Executive has hereunto set his hand and, pursuant to the authorization from its Board of Directors, the Corporation has caused these presents to be executed in its name on its behalf, and its corporate seal to be hereunto affixed, all as of the day and the year first above written.


	“Executive” HANCOCK FABRICS, INC.
	By:
		Its