<HTML>
<HEAD>
<TITLE>Filed by Bowne Pure Compliance</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV style="font-size: 10pt">
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>


<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): September 18, 2008</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>A.C. Moore Arts & Crafts, Inc.<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>Pennsylvania</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>000-23157</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>22-3527763</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
</TR>
</TABLE>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>130 A.C. Moore Drive, Berlin, NJ<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>08009</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(856) 768-4930</B>


<TABLE border="0" width="30%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR>
    <TD nowrap style="border-bottom: 1px solid #000000"><B>Not Applicable<BR></B></TD>
</TR>
<TR>
    <TD nowrap>(Former name or former address if changed since last report.)</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


<P>
<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Item&nbsp;1.01.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Entry into a Material Definitive Agreement.</B></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Effective September&nbsp;18, 2008, A.C. Moore Arts &#038; Crafts, Inc. and its subsidiaries (the &#147;<I>Company</I>&#148; or &#147;<I>A.C. Moore</I>&#148;)
entered into with Wachovia Bank, National Association (&#147;<I>Wachovia</I>&#148;), the lender on the Company&#146;s mortgages on its
corporate offices and distribution center and its line of credit, a promissory note and loan modification agreement
(the &#147;<I>loan modification</I>&#148;). Pursuant to the loan modification, the parties agreed that the Company&#146;s quarterly income
will be calculated excluding (i)&nbsp;the provisions of FAS 144, <I>Accounting for the Impairment or Disposal of Long-Lived
Assets,&#148; </I>in an amount not to exceed $2.0&nbsp;million, and (ii)&nbsp;the provisions of FAS 146, &#147;<I>Accounting for Costs Associated
with Exit or Disposal Activities</I>&#148; in an amount not to exceed $7.0&nbsp;million.


<P align="left" style="font-size: 10pt">The interest rate is calculated based on the Company&#146;s debt service coverage ratio (as defined in the Amended and
Restated Loan Agreement relating to the mortgages and the line of credit). The loan modification changed the matrix
for determining margin as follows: (i)&nbsp;if the debt service coverage ratio is greater than 1.75, the interest rate will
be LIBOR plus 0.65%, (ii)&nbsp;if the debt service coverage ratio is greater than 1.50 and less than or equal to 1.75, the
interest rate will be LIBOR plus 0.85%, (iii)&nbsp;if the debt service coverage ratio is greater than 1.35 and less than or
equal to 1.50, the interest rate will be LIBOR plus 1.10%, and (iv)&nbsp;if the debt service coverage ratio is greater than
1.25 and less than or equal to 1.35, the interest rate will be LIBOR plus 1.35%.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Item&nbsp;5.02</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.</B></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">On September&nbsp;24, 2008 (the &#147;<I>effective date</I>&#148;), A.C. Moore entered into an amended and restated employment letter (the
&#147;<I>letter agreement</I>&#148;) with Michael G. Zawoysky to serve as the Company&#146;s Executive Vice President and Chief Financial
Officer. The material terms of the letter agreement with Mr.&nbsp;Zawoysky are described below.


<P align="left" style="font-size: 10pt">Mr.&nbsp;Zawoysky, 51, has served as the Company&#146;s Vice President of Financial Planning and Analysis since March&nbsp;2007 and
Acting Chief Financial Officer since June&nbsp;2008. Previously, he served in various positions with Foot Locker, Inc., the
national specialty athletic retailer, most recently as Executive Vice President and Chief Financial Officer of Foot
Locker Europe from April&nbsp;2004 to September&nbsp;2006, Chief Operating Officer of FootLocker.com. from March&nbsp;2003 to April
2004 and Chief Financial Officer of FootLocker.com from November&nbsp;2000 to March&nbsp;2003.


<P align="left" style="font-size: 10pt">Pursuant to the letter agreement, Mr.&nbsp;Zawoysky will receive a base salary of $250,000 per year. On the effective date,
Mr.&nbsp;Zawoysky was granted 7,500 shares of performance accelerated restricted stock and 25,000 stock-settled stock
appreciation rights under the Company&#146;s 2007 Stock Incentive Plan.


<P align="left" style="font-size: 10pt">If A.C. Moore terminates his employment without cause, Mr.&nbsp;Zawoysky is entitled to receive base salary and insurance
benefits through the sixth-month anniversary of the termination date. In the event Mr.&nbsp;Zawoysky remains unemployed
after six months from his termination date, he will receive an additional month of severance and insurance benefits for
each month he remains unemployed, up to a maximum of six additional months. Mr.&nbsp;Zawoysky is required to actively seek
employment after the termination date in order to receive the additional monthly severance.

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<P align="left" style="font-size: 10pt">The letter agreement provides for an automatic one-year term from the date of a change of control (as defined in the
letter agreement), during which Mr.&nbsp;Zawoysky is guaranteed a base salary equal to 12 times his highest monthly base
salary during the 12&nbsp;months preceding the change of control, as well as an annual cash bonus at least equal to the
amount received for the last full calendar year. If A.C. Moore terminates his employment other than for cause, death
or disability or Mr.&nbsp;Zawoysky terminates for good reason, Mr.&nbsp;Zawoysky is entitled to receive a lump sum cash payment
equal to the aggregate of base salary through the date of termination, pro rata bonus and twelve months of base salary.
Mr.&nbsp;Zawoysky will also receive insurance benefits during this period. For termination due to death or disability, he
or his estate will receive a cash lump sum payment equal to the aggregate of his base salary through the date of death
or disability and his pro rata bonus. If A.C. Moore terminates for cause or Mr.&nbsp;Zawoysky terminates without good
reason following a change of control, he is entitled to base salary through the date of termination. The amendment
provides that Mr.&nbsp;Zawoysky&#146;s options, stock appreciation rights and restricted stock vest immediately upon a change of
control. If Mr.&nbsp;Zawoysky&#146;s employment is terminated without cause following a change in control, he will have until
the earlier of the original option or stock appreciation right term or 18&nbsp;months after the termination date to exercise
the options or stock appreciation rights.


<P align="left" style="font-size: 10pt">Mr.&nbsp;Zawoysky&#146; letter agreement contains restrictive covenants relating to confidentiality, non-competition and
non-solicitation. The non-competition and non-solicitation prohibition is for 12&nbsp;months following the termination of
his employment.

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Item&nbsp;7.01</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Regulation&nbsp;FD Disclosure.</B></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">On September&nbsp;24, 2008, the Company issued the press release announcing Mr.&nbsp;Zawoysky&#146;s appointment. A copy of the
press release is furnished as Exhibit&nbsp;99.1 to this Current Report on Form 8-K.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>Item&nbsp;9.01</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits.</B></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">(d)&nbsp;Exhibits.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated September&nbsp;24, 2008.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<P align="center" style="font-size: 10pt"><B>SIGNATURE</B>



<P align="left" style="font-size: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="44%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="44%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3"><B>A.C. MOORE ARTS &#038; CRAFTS, INC.</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: September
24, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Amy Rhoades</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD nowrap align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Amy Rhoades</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: Vice President and General Counsel</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<P align="center" style="font-size: 10pt"><U><B>EXHIBIT INDEX</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated September&nbsp;24, 2008.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">6




</DIV>
</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "c75516e8vk.htm", "description": "FORM 8-K", "secsgml_size_bytes": 17127}]
{"company-data": {"conformed-name": "A.C. Moore Arts & Crafts, Inc.", "cik": "0001042809", "assigned-sic": "5945", "irs-number": "223527763", "state-of-incorporation": "PA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-23157", "film-number": "081086757"}, "business-address": {"street1": "130 A.C. MOORE DRIVE", "city": "BERLIN", "state": "NJ", "zip": "08009", "phone": "(856) 768-4930"}, "mail-address": {"street1": "130 A.C. MOORE DRIVE", "city": "BERLIN", "state": "NJ", "zip": "08009"}, "former-company": {"former-conformed-name": "A C MOORE ARTS & CRAFTS INC", "date-changed": "19970722"}}
Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 18, 2008
A.C. Moore Arts & Crafts, Inc.
(Exact name of registrant as specified in its charter)
Pennsylvania
000-23157
22-3527763
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
130 A.C. Moore Drive, Berlin, NJ
08009
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
(856) 768-4930
Not Applicable
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01.
Entry into a Material Definitive Agreement.
Effective September 18, 2008, A.C. Moore Arts & Crafts, Inc. and its subsidiaries (the "
Company
" or "
A.C. Moore
")
entered into with Wachovia Bank, National Association ("
Wachovia
"), the lender on the Company's mortgages on its
corporate offices and distribution center and its line of credit, a promissory note and loan modification agreement
(the "
loan modification
"). Pursuant to the loan modification, the parties agreed that the Company's quarterly income
will be calculated excluding (i) the provisions of FAS 144,
Accounting for the Impairment or Disposal of Long-Lived
Assets,"
in an amount not to exceed $2.0 million, and (ii) the provisions of FAS 146, "
Accounting for Costs Associated
with Exit or Disposal Activities
" in an amount not to exceed $7.0 million.
The interest rate is calculated based on the Company's debt service coverage ratio (as defined in the Amended and
Restated Loan Agreement relating to the mortgages and the line of credit). The loan modification changed the matrix
for determining margin as follows: (i) if the debt service coverage ratio is greater than 1.75, the interest rate will
be LIBOR plus 0.65%, (ii) if the debt service coverage ratio is greater than 1.50 and less than or equal to 1.75, the
interest rate will be LIBOR plus 0.85%, (iii) if the debt service coverage ratio is greater than 1.35 and less than or
equal to 1.50, the interest rate will be LIBOR plus 1.10%, and (iv) if the debt service coverage ratio is greater than
1.25 and less than or equal to 1.35, the interest rate will be LIBOR plus 1.35%.
Item 5.02
Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.
On September 24, 2008 (the "
effective date
"), A.C. Moore entered into an amended and restated employment letter (the
"
letter agreement
") with Michael G. Zawoysky to serve as the Company's Executive Vice President and Chief Financial
Officer. The material terms of the letter agreement with Mr. Zawoysky are described below.
Mr. Zawoysky, 51, has served as the Company's Vice President of Financial Planning and Analysis since March 2007 and
Acting Chief Financial Officer since June 2008. Previously, he served in various positions with Foot Locker, Inc., the
national specialty athletic retailer, most recently as Executive Vice President and Chief Financial Officer of Foot
Locker Europe from April 2004 to September 2006, Chief Operating Officer of FootLocker.com. from March 2003 to April
2004 and Chief Financial Officer of FootLocker.com from November 2000 to March 2003.
Pursuant to the letter agreement, Mr. Zawoysky will receive a base salary of $250,000 per year. On the effective date,
Mr. Zawoysky was granted 7,500 shares of performance accelerated restricted stock and 25,000 stock-settled stock
appreciation rights under the Company's 2007 Stock Incentive Plan.
If A.C. Moore terminates his employment without cause, Mr. Zawoysky is entitled to receive base salary and insurance
benefits through the sixth-month anniversary of the termination date. In the event Mr. Zawoysky remains unemployed
after six months from his termination date, he will receive an additional month of severance and insurance benefits for
each month he remains unemployed, up to a maximum of six additional months. Mr. Zawoysky is required to actively seek
employment after the termination date in order to receive the additional monthly severance.
The letter agreement provides for an automatic one-year term from the date of a change of control (as defined in the
letter agreement), during which Mr. Zawoysky is guaranteed a base salary equal to 12 times his highest monthly base
salary during the 12 months preceding the change of control, as well as an annual cash bonus at least equal to the
amount received for the last full calendar year. If A.C. Moore terminates his employment other than for cause, death
or disability or Mr. Zawoysky terminates for good reason, Mr. Zawoysky is entitled to receive a lump sum cash payment
equal to the aggregate of base salary through the date of termination, pro rata bonus and twelve months of base salary.
Mr. Zawoysky will also receive insurance benefits during this period. For termination due to death or disability, he
or his estate will receive a cash lump sum payment equal to the aggregate of his base salary through the date of death
or disability and his pro rata bonus. If A.C. Moore terminates for cause or Mr. Zawoysky terminates without good
reason following a change of control, he is entitled to base salary through the date of termination. The amendment
provides that Mr. Zawoysky's options, stock appreciation rights and restricted stock vest immediately upon a change of
control. If Mr. Zawoysky's employment is terminated without cause following a change in control, he will have until
the earlier of the original option or stock appreciation right term or 18 months after the termination date to exercise
the options or stock appreciation rights.
Mr. Zawoysky' letter agreement contains restrictive covenants relating to confidentiality, non-competition and
non-solicitation. The non-competition and non-solicitation prohibition is for 12 months following the termination of
his employment.
Item 7.01
Regulation FD Disclosure.
On September 24, 2008, the Company issued the press release announcing Mr. Zawoysky's appointment. A copy of the
press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
99.1
Press release dated September 24, 2008.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
A.C. MOORE ARTS & CRAFTS, INC.
Date: September
24, 2008
By:
/s/ Amy Rhoades
Name: Amy Rhoades
Title: Vice President and General Counsel
EXHIBIT INDEX
Exhibit No.
Description
99.1
Press release dated September 24, 2008.