EXHIBIT 10(a)

                        EXECUTIVE EMPLOYMENT AGREEMENT



           THIS AGREEMENT is entered into July 6, 1998, between JACOBSON
STORES INC., a Michigan corporation, of Jackson, Michigan (the "Company"),
and George P. Kelly the "Employee").


           THE PARTIES AGREE AS FOLLOWS:

           1. Employment and Term. The Company employs Employee as Senior
Vice President-General Merchandise Manager, and Employee agrees to serve in
that capacity and/or in such other capacity or capacities as the Chief
Executive Officer of the Company deems advisable, commencing July 6, 1998,
and continuing through April 15, 2000, unless terminated sooner pursuant to
the provisions of paragraph 4, for the salary and on the terms set forth
herein.

           2. Compensation. Subject to the provisions of paragraph 4, the
Company agrees to pay Employee salary at an annual rate of $ 200,000.00, in
bi-weekly or other regular periodic installments no less frequent than
monthly.

           3. Duties. Employee agrees, as long as employment by the Company
continues, to devote Employee's entire time and best efforts to furthering
the interests of the Company; to comply with all regulations and policies of
the Company; and to perform the duties requested by any officers and
executives of the Company to whom the Employee is directed to report.

           4. Termination. Employee's employment under this Agreement shall
terminate on the earliest to occur of the following: (1) immediately upon
Employee's death, (2) at the Company's option, immediately when notice to
Employee of such termination is given after Employee's permanent incapacity
(established to the reasonable satisfaction of the Chief Executive Officer of
the Company), (3) at the Company's option, immediately when notice to
Employee of such termination is given (for any reason or for no reason and
regardless of whether there is good cause for such termination), (4) 30 days
after notice of such termination is given to the Company by Employee, and (5)
April 15, 2000. Notice will be deemed to be given on the earliest of (1) when
delivered, or (2) three business days after mailed by certified or registered
mail, postage prepaid, return receipt requested, or (3) one business day
after sent by recognized overnight courier, if to Employee, to Employee's
address on the Company's corporate records, and if to the Company, to the
address of its principal executive offices. The following events during the
term of this Agreement shall have the following respective effects on the
obligations of the Company pursuant hereto:

              (a) If employment is terminated due to Employee's death or
permanent incapacity, the Company shall have no obligation to pay any salary
or other amounts or benefits under this Agreement or otherwise for any period
after the date of termination of employment, but benefits may continue to the
extent provided in any wage continuation program, insurance, or other
employee benefit plans that are generally applicable to all employees of the
Company and that are maintained by the Company at that time.


<PAGE>

              (b) Except as otherwise provided in paragraph 4(c), if
employment is terminated by the Company (for any reason or for no reason and
regardless of whether there is good cause for such termination), or if
Employee resigns or retires before or at the expiration of the term, the
Company shall have no obligation to pay any salary or other amounts or
benefits under this Agreement or otherwise for any period after the date of
termination of employment, but benefits may continue to the extent provided
in any severance program, wage continuation program, insurance, or other
employee benefit plans that are generally applicable to all employees of the
Company and that are maintained by the Company at that time.

              (c) If (1) a "Change in Control" (as defined below) occurs
during the term of Employee's employment under this Agreement, and (2) either
Employee terminates Employee's employment with the "Entity" (as defined
below) for "Good Reason" (as defined below) or the "Entity" terminates
Employee's employment without "Cause" (as defined below), both within one
year after the Change in Control, Employee will receive an amount equal to
Employee's annual salary at the rate set forth in paragraph 2 for the period
from the date of such termination through the date that is 24 months after
the date such Change in Control occurs. Such payments shall be made at the
times provided in paragraph 2. The Company may withhold from such payments
all federal, state, city and other taxes to the extent such taxes are
required to be withheld by applicable law. The Company's obligation to pay
the salary continuation payments provided in this paragraph 4(c) shall
survive the expiration of the term.

                   (i) For purposes of this Agreement, a "Change in Control"
     occurs on the first day any one or more of the following occurs:

                         (A) any person (as such term is used in Sections
               13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as
               amended (the "Exchange Act")), together with all affiliates
               and associates of such person (as such terms are defined in
               Rule 12b-2 under the Exchange Act) but excluding all "Excluded
               Persons" (as defined in paragraph 4(c)(ii)), becomes the
               direct or indirect beneficial owner (within the meaning of
               Rule 13d-3 under the Exchange Act) of securities of the
               Company representing (A) 40% or more of the combined voting
               power of all of the Company's outstanding securities entitled
               to vote generally in the election of the Company's directors,
               or (B) 40% or more of the combined shares of the Company's
               capital stock then outstanding, all except in connection with
               any merger, consolidation, reorganization or share exchange
               involving the Company;

                         (B) the consummation of any merger, consolidation,
               reorganization or share exchange involving the Company, unless
               the holders of the Company's capital stock outstanding
               immediately before such transaction own more than 50% of the
               combined outstanding shares of capital stock and have more
               than 50% of the combined voting power in the surviving entity
               after such transaction and they own such securities in
               substantially the same proportions (relative to each other) as
               they owned the Company's capital stock immediately before such
               transaction;

                         (C) the consummation of any sale or other
               disposition (in one transaction or a series of related
               transactions) of all, or substantially all, of the Company's
               assets to a person whose acquisition of 40% or more of the
               combined shares of the Company's capital stock then
               outstanding would have caused a Change in Control under
               paragraph 4(c)(i)(A); or


                                    - 2 -

<PAGE>


                         (D) the "Continuing Directors" (as defined in
               paragraph 4(c)(iii)) cease to be a majority of the Company's
               directors.

     A determination by the Company's Continuing Directors (by resolution of
     at least a majority of the Continuing Directors) as to whether a Change
     in Control has occurred for purposes of this Agreement, the date on
     which it has occurred or both shall be conclusive for purposes of this
     Agreement.

                   (ii) For purposes of this Agreement, the "Excluded
     Persons" are (1) Employee, (2) any "group" (as that term is used in
     Section 13(d) of the Exchange Act and the rules thereunder) that
     includes Employee or in which Employee is, or has agreed to become, an
     equity participant, (3) any entity in which Employee is, or has agreed
     to become, an equity participant, (4) the Company, (5) any subsidiary of
     the Company, (6) any employee benefit plan of the Company or any
     subsidiary of the Company or the related trust, (7) any entity to the
     extent it is holding capital stock of the Company for or pursuant to the
     terms of any employee benefit plan of the Company or any subsidiary of
     the Company, and (8) any director, officer or beneficial owner of at
     least 10% of the Company's outstanding Common Stock as of the date of
     this Agreement. For purposes of this Agreement, Employee shall not be
     deemed an "equity participant" in any group or entity (1) in which
     Employee owns for investment purposes only no more than 5% of the stock
     of a publicly-traded entity whose stock is either listed on a national
     stock exchange or quoted in The NASDAQ National Market, if Employee is
     not otherwise affiliated with such group or entity, or (2) if Employee's
     participation is fully-disclosed to, and approved by, the Company's
     Chief Executive Officer before the Change in Control occurs.

                   (iii) For purposes of this Agreement, the "Continuing
     Directors" are the directors of the Company as of the date of this
     Agreement, and any person who subsequently becomes a director if such
     person is appointed to be a director by a majority of the Continuing
     Directors or if such person's initial nomination for election or initial
     election as a director is recommended or approved by a majority of the
     Continuing Directors.

                   (iv) Termination of Employee's employment for "Good
     Reason" means Employee's voluntary termination of employment with the
     Entity after a Change in Control as a result of (1) any decrease by the
     Entity (without Employee's consent) in Employee's salary from Employee's
     salary immediately before such Change in Control; provided, that no such
     decrease shall constitute "Good Reason" if such decrease is applied in
     the same manner to all officers or employees at the same employment
     level as Employee (such as all officers or all store managers, as the
     case may be), (2) a substantial change by the Entity (without Employee's
     consent) in Employee's duties or responsibilities from Employee's duties
     and responsibilities immediately before such Change in Control, or (3)
     any requirement by the Entity (to which Employee does not consent) that
     Employee change Employee's primary place of business. "Good Reason" will
     not include Employee's death, permanent incapacity or Retirement (as
     defined below), or Employee's resignation other than as provided in the
     preceding sentence. For purposes of this Agreement, "Retirement" means
     Employee's retirement from the Entity in accordance with the Entity's
     normal policies.

                   (v) The Entity's termination of Employee's employment
     without "Cause" means a termination other than for (1) Employee's
     continued failure either to (A) devote substantially full time to
     Employee's employment duties (except because of Employee's illness or
     disability) or (B) make a good faith effort to perform Employee's
     employment duties; (2) any other willful act or omission which Employee
     knew, or had reason to know, would materially injure the Entity; or (3)
     Employee's conviction of a felony involving dishonesty or fraud. 


                                    - 3 -

<PAGE>


                   (vi) For purposes of this Agreement, the "Entity" shall
     mean both (1) the Company and (2) in connection with a Change in Control
     defined in paragraph 4(c)(i)(B) or paragraph 4(c)(i)(C), the survivor of
     the merger, consolidation, reorganization or share exchange involving
     the Company and the buyer of all, or substantially all, of the Company's
     assets, if such additional entity described in this clause (2) (if other
     than the Company) has offered to employ Employee on such terms that
     would not constitute "Good Reason" for termination of Employee's
     employment if imposed by the Company. Therefore, for purposes of this
     paragraph 4(c), Employee shall not be deemed to have terminated
     Employee's employment with the Entity for "Good Reason" and the "Entity"
     shall not be deemed to have terminated Employee's employment without
     "Cause" unless such actions are taken by all entities included within
     the definition of "Entity". In addition, for purposes of this paragraph
     4(c), Employee shall not be deemed to have terminated Employee's
     employment with the Entity for "Good Reason" and the "Entity" shall not
     be deemed to have terminated Employee's employment without "Cause" if
     (1) the survivor of the merger, consolidation, reorganization or share
     exchange involving the Company and the buyer of all, or substantially
     all, of the Company's assets has offered to employ Employee on such
     terms that would not constitute "Good Reason" for termination of
     Employee's employment if imposed by the Company, (2) Employee refuses
     such employment, and (3) the Company terminates Employee's employment
     for any reason or for no reason.

              (d) The severance benefits provided in this paragraph 4 are
exclusive and in lieu of any other severance benefits to which Employee may
be entitled, except for any benefits under the terms of any stock options or
restricted stock agreements Employee may have.

              (e) There is not, nor will there be unless in writing signed by
both Employee and the Company, any express or implied agreement as to
Employee's continued employment by the Company after the end of the term of
Employee's employment under this Agreement. Employee's subsequent employment
with the Company, if any, will be employment "at will", and the provisions of
this Agreement will not apply to any such employment.

           5. Previous Agreements Superseded. This Agreement supersedes all
previous employment agreements between the parties.

           6. Miscellaneous Provisions. This Agreement may be amended only by
written agreement signed by either the Chairman or Vice Chairman of the
Company. It shall be construed according to the laws of Michigan, and shall
be binding on and enforceable by the parties and their successors in
interest.



IN THE PRESENCE OF:              JACOBSON STORES INC.


                                 By:  /s/  James K. Delaney
---------------------------           ------------------------------------
                                      Its Vice President, Human Resources
                                                    COMPANY


                                 /s/  George P. Kelly
----------------------------          ------------------------------------
                                                    EMPLOYEE


                                    - 4 -