X0303 4 2010-12-21 0000812906 HANCOCK FABRICS INC HKFI 0001316282 Aggers Jane F ONE FASHION WAY BALDWYN MS 38824 1 1 0 0 CEO Common Stock 2010-12-21 4 M 0 33330 .65 A 363330 D Employee Stock Option (Right to Buy) .65 2010-12-21 4 M 0 33330 0 D 2016-04-16 Common Stock 33330 66670 D A portion of the Company's securities held by the executive are held indirectly through a limited liability company controlled by the executive. The executive does not disclaim beneficial ownership of any of these securities. Options to purchase 33,330 shares vested on 04/16/2010. On December 30, 2009, the reporting person reported 220,000 derivative securities beneficially owned following the reported transaction which represented the aggregate number of derivative securities beneficially owned for all options held by the reporting person. Following this transaction, the reporting will own options representing the right to buy 66,670 shares of common stock for an exercise price of $0.65 which expire on 04/16/2016 and options representing the right to buy 120,000 shares of common stock for an exercise price of $1.58 which expire on 8/7/2015. /s/ Jane F. Aggers 2010-12-22