X0201 42003-08-0100000320333HANOVER DIRECT INC HNV0001187832KRUSHEL KENNETH J115 RIVER ROADEDGEWATERNJ070201000Stock Option (Right to Buy)0.25142003-08-014A0350000.2514A2004-08-012013-08-01Common Stock35000130000DGiven as part of 2002 Stock Option Plan for Directors.One-third on each of 8/01/04, 8/01/05 and 100% on 8/01/06, provided the Reporting Person is a Director of Hanover Direct, Inc. immediately prior to any of each such shares./s/ Kenneth J. Krushel2003-08-15