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Prepared and filed by St Ives Financial
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<p align="center"><font size="2" face="serif"><b>UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>Washington, D.C.  20549</b></font></p>
<p align="center"><font size="2" face="serif"><b>FORM 8-K<br>CURRENT REPORT</b></font></p>
<p align="center"><font size="2" face="serif"><b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</b></font></p>
<div style="text-indent: 3%">
  <p align="left"><font size="2" face="serif">Date of report (Date of earliest
      event reported) <u>November 15, 2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
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  <td width="25%" align="center">&nbsp;</td>
  <td align="center"><font size="2" face="serif"><b><font face="serif" size="4">A.C.
          Moore Arts &amp; Crafts, Inc.</font></b></font></td>
  <td width="25%" align="center">&nbsp;</td>
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  <td align="center">&nbsp;</td>
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  <td align="center"><font size="2" face="serif">(Exact name of registrant as
      specified in its charter)</font></td>
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<td width="32%"><font size="2" face="serif">Pennsylvania</font></td>
<td width="2%">&nbsp;</td>
<td><font size="2" face="serif">000-23157</font></td>
<td width="2%">&nbsp;</td>
<td width="32%"><font size="2" face="serif">22-3527763</font></td>
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<td width="32%"><font size="2" face="serif">(State or other jurisdiction of incorporation)</font></td>
<td width="2%">&nbsp;</td>
<td><font size="2" face="serif">(Commission File Number)</font></td>
<td width="2%">&nbsp;</td>
<td width="32%"><font size="2" face="serif">(IRS Employer Identification No.)</font></td>
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<td width="45%" align="center"><font size="2" face="serif">130 A.C. Moore Drive, Berlin, NJ</font></td>
<td align="left" width="2%">&nbsp;</td>
<td width="21%" align="center"><font size="2" face="serif">08009</font></td>
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<td width="45%" align="center"><font size="2" face="serif">(Address of principal executive offices)</font></td>
<td width="2%" align="left">&nbsp;</td>
<td align="center"><font size="2" face="serif">(Zip Code)</font></td>
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<p align="left"><font size="2" face="serif">Registrant&#146;s telephone number, including area code  <u>(856) 768-4930</u></font></p>  <table width="100%" border="0" cellpadding="0" cellspacing="0">
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  <td align="center"><font size="2" face="serif">Not Applicable</font></td>
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  <td align="center"><font size="2" face="serif">(Former name or former address,
      if changed since last report.)</font></td>
  <td width="25%" align="center">&nbsp;</td>
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<div style="text-indent: 3%">
  <p align="left"><font size="2" face="serif">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 (<i>see </i>General
      Instruction A.2. below):</font></p>
</div>
<div style="text-indent: 3%">
  <p align="left"><font size="2" face="serif"><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
  <p align="left"><font size="2" face="serif"><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
  <p align="left"><font size="2" face="serif"><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></p>
  <p align="left"><font size="2" face="serif"><img src="emptybox.gif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></p>
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<td align="left" width="9%"><font size="2" face="serif"><b>Item&nbsp;1.01</b></font></td>
<td align="left"><font size="2" face="serif"><b>Entry into a Material Definitive Agreement.</b></font></td>
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<div style="text-indent: 3%">
  <p align="left"><font size="2" face="serif">On November 15, 2006, A.C. Moore
      Arts &amp; Crafts, Inc. (the &#147;Company&#148;) entered into the First
      Amendment (the &#147;Amendment&#148;) to the Employment Agreement, dated
      June 1, 2006 (the &#147;Agreement&#148;), with Rick A. Lepley, the Company&#146;s
      Chief Executive Officer. The Amendment amends the Agreement to provide
      for the following changes:</font></p>
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<font size="2" face="serif">&#149;</font></td>
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<font size="2" face="serif">The Company is not relieved of its obligation to pay severance to Mr. Lepley in the event of non-renewal of the Agreement.</font></td>
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  <td></td>
  <td>&nbsp;</td>
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<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">Upon a termination without cause following a change of control, all options to purchase common stock to which Mr. Lepley would be entitled to receive will immediately be deemed granted and vested and Mr. Lepley will have 18 months after the termination date to exercise these options.</font></td>
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  <td></td>
  <td>&nbsp;</td>
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<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">All options held by Mr. Lepley on the date of a change of control will immediately vest.  If Mr. Lepley&#146;s employment is terminated without cause following the change of control, he will have until the earlier of the end of the original option term and 18 months after the termination date to exercise the options.</font></td>
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  <td>&nbsp;</td>
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<td width="3%"></td>
<td width="3%">
<font size="2" face="serif">&#149;</font></td>
<td>
<font size="2" face="serif">Under the Agreement, Mr. Lepley is entitled to receive annual grants of an option to purchase 100,000 shares of the Company&#146;s common stock.  The Amendment provides that Mr. Lepley will receive each annual grant on the date in each calendar year that the Company&#146;s Board of Directors otherwise grants equity to management.  In the event that the Board does not grant equity to management and Mr. Lepley remains employed by the Company on June 1 of that year, Mr. Lepley will receive the annual grant on December 31 regardless of whether he is still employed with the Company on December 31 for that year.</font></td>
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<div style="text-indent: 3%">
  <p align="left"><font size="2" face="serif">The foregoing summary of the Amendment
      is not intended to be complete, and is qualified in its entirety by reference
      to the Amendment, which is attached to this Current Report on Form 8-K
      as Exhibit 10.1 and is incorporated by reference into this Item 1.01.</font></p>
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<table width="100%" cellspacing="0" cellpadding="0" border="0">
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<td align="left" width="9%"><font size="2" face="serif"><b>Item&nbsp;9.01</b></font></td>
<td align="left"><font size="2" face="serif"><b>Financial Statements and Exhibits.</b></font></td>
</tr>
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<p align="left"><font size="2" face="serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.</font></p>
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<tr valign="top" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif"><u>Exhibit No.</u></font></td>
<td align="left" width="2%">&nbsp;</td>
<td width="85%" align="left"><u><font size="2" face="serif">Description</font></u></td>
</tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">10.1</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">First Amendment, dated as of November 15, 2006, to the Employment Agreement, dated as of June 1, 2006, between the Company and Rick A. Lepley.</font></td>
</tr>
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  <td align="left">&nbsp;</td>
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<p align="center"><font size="2" face="serif"><b>SIGNATURE</b></font></p>
<div style="text-indent: 3%">
  <p align="left"><font size="2" face="serif">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.</font></p>
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<tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td colspan="3" align="left"><font size="2" face="serif">A.C. MOORE ARTS &amp; CRAFTS, INC.</font></td> </tr>
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  <td colspan="2" align="left">&nbsp;</td>
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<td align="left"><font size="1" face="serif">&nbsp;</font></td>
<td colspan="2" align="left"><font size="1" face="serif">&nbsp;</font></td> </tr>
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<td align="left"><font size="2" face="serif">Date:  November 16, 2006</font></td>
<td align="left"><font size="2" face="serif">By:</font></td>
<td colspan="2" align="left"><font size="2" face="serif">/s/ Amy Rhoades</font></td>
</tr>
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<td width="50%">&nbsp;</td>
<td width="4%">&nbsp;</td>
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<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td width="8%" align="left"><font size="2" face="serif">Name:</font></td>
<td align="left"><font size="2" face="serif">Amy Rhoades</font></td>
</tr>
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<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left"><font size="2" face="serif">Title:</font></td>
<td align="left"><font size="2" face="serif">Vice President and General Counsel</font></td>
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  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
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<p align="center"><font size="2" face="serif"><b><u>EXHIBIT INDEX</u></b></font></p>
<table width="100%" cellspacing="0" cellpadding="0" align="center" border="0">
  <tr valign="top" bgcolor="#FFFFFF">
    <td align="left"><font size="2" face="serif"><u>Exhibit No.</u></font></td>
    <td width="2%" align="left">&nbsp;</td>
    <td width="85%" align="left"><u><font size="2" face="serif">Description</font></u></td>
  </tr>
<tr valign="top" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">10.1</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">First Amendment, dated as of November 15, 2006, to the Employment Agreement, dated as of June 1, 2006, between the Company and Rick A. Lepley.</font></td>
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{"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": "061223733"}, "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"}}
Prepared and filed by St Ives Financial
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)
November 15, 2006
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 (
see
General
      Instruction A.2. below):
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
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.
On November 15, 2006, A.C. Moore
      Arts & Crafts, Inc. (the "Company") entered into the First
      Amendment (the "Amendment") to the Employment Agreement, dated
      June 1, 2006 (the "Agreement"), with Rick A. Lepley, the Company's
      Chief Executive Officer. The Amendment amends the Agreement to provide
      for the following changes:
•
The Company is not relieved of its obligation to pay severance to Mr. Lepley in the event of non-renewal of the Agreement.
•
Upon a termination without cause following a change of control, all options to purchase common stock to which Mr. Lepley would be entitled to receive will immediately be deemed granted and vested and Mr. Lepley will have 18 months after the termination date to exercise these options.
•
All options held by Mr. Lepley on the date of a change of control will immediately vest.  If Mr. Lepley's employment is terminated without cause following the change of control, he will have until the earlier of the end of the original option term and 18 months after the termination date to exercise the options.
•
Under the Agreement, Mr. Lepley is entitled to receive annual grants of an option to purchase 100,000 shares of the Company's common stock.  The Amendment provides that Mr. Lepley will receive each annual grant on the date in each calendar year that the Company's Board of Directors otherwise grants equity to management.  In the event that the Board does not grant equity to management and Mr. Lepley remains employed by the Company on June 1 of that year, Mr. Lepley will receive the annual grant on December 31 regardless of whether he is still employed with the Company on December 31 for that year.
The foregoing summary of the Amendment
      is not intended to be complete, and is qualified in its entirety by reference
      to the Amendment, which is attached to this Current Report on Form 8-K
      as Exhibit 10.1 and is incorporated by reference into this Item 1.01.
Item 9.01
Financial Statements and Exhibits.
(d)      Exhibits.
Exhibit No.
Description
10.1
First Amendment, dated as of November 15, 2006, to the Employment Agreement, dated as of June 1, 2006, between the Company and Rick A. Lepley.
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:  November 16, 2006
By:
/s/ Amy Rhoades
Name:
Amy Rhoades
Title:
Vice President and General Counsel
EXHIBIT INDEX
Exhibit No.
Description
10.1
First Amendment, dated as of November 15, 2006, to the Employment Agreement, dated as of June 1, 2006, between the Company and Rick A. Lepley.