**Exhibit 10.2****AGREEMENT**     THIS AGREEMENT (“Agreement”) is made as of the 19th day of November, 2007, betweenJO-ANN STORES, INC., an Ohio corporation (the “Company”), and Ken Haverkost (“Executive”).     The Company is entering into this Agreement in recognition of the importance of Executive’sservices to the continuity of management of the Company and based upon its determination that itwill be in the best interests of the Company to encourage Executive’s continued attention anddedication to Executive’s duties as a general matter and in the potentially disruptivecircumstances of a possible Change of Control of the Company. (As used in this Agreement, the term“Change of Control” and certain other capitalized terms have the meanings ascribed to them inSection 17 at the end of this Agreement.)     The Company and Executive agree, effective as of the date first set forth above (the“Effective Date”), as follows:***1. Severance Benefits upon Certain Separations from Service Occurring Before a Change of Control***.If, before the occurrence of a Change of Control, Executive has a Separation from Service with theCompany by the Company without Cause, or by Executive for Good Reason, Executive shall be entitledto the following as Severance Benefits:     (a) The Company shall pay Executive an amount equal to one and one-half (1.5) timesExecutive’s Base Salary payable in consecutive bi-weekly installments over the eighteen (18)months following the Separation from Service at the same times and in the same amounts as ifExecutive had not incurred a Separation from Service and had continued to earn Executive’sBase Salary over that eighteen (18) month period. Each such installment shall be a“Payment” for purposes of this Section 1(a). The Payments shall be paid over the followingpayment periods:     (i) First Payment Period. The First Payment Period shall begin on thefirst bi-weekly payroll date following the Separation from Service and shall end onthe last bi-weekly payroll date of the sixth (6th) calendar monthfollowing the calendar month in which the Separation from Service occurs. TheCompany shall pay a Payment to Executive on each bi-weekly payroll date during theFirst Payment Period; provided, however, in no event shall the aggregate amount paidto Executive during the First Payment Period exceed two (2) times the lesser of:(A) the Executive’s annualized compensation based upon the annual rate of pay paid toExecutive for services to the Company for the calendar year preceding the calendaryear in which the Separation from Service occurs (adjusted for any increase duringthat year that was expected to continue indefinitely but for the Separation fromService), or (B) the maximum amount that may be taken into account under Section401(a)(17) of the Internal Revenue Code for the calendar year in which the Separationfrom Service occurs.     In the event any amount that would have been paid during the First PaymentPeriod cannot be paid because it would exceed the limitation provided in thepreceding paragraph, such excess amount shall be paid in a lump sum on the firstbi-weekly payroll date of the Second Payment Period (in addition to any amount that
 

 
Haverkost, Ken