Document:

EX-10.9

 Exhibit 10.9 

AGREEMENT 
 THIS
AGREEMENT (“Agreement”) is made as of the 30 day of November 2020 (the “Effective Date”) between JO-ANN STORES, LLC, an Ohio limited liability company (the
“Company”), and Robert Will (“Executive”). 
 The Company is entering into
this Agreement in recognition of the importance of Executive’s services to the continuity of management of the Company and based on its determination that it will be in the best interests of the Company to encourage Executive’s continued
attention and dedication to Executive’s duties as a general matter and in the potentially disruptive circumstances 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 in Section 16 of this Agreement). 
 The Company and Executive
agree as follows: 
 1. Severance Benefits upon Involuntary Termination Without Cause Before a Change of
Control. If Executive’s employment is terminated prior to a Change of Control by the Company without Cause, Executive will be entitled to the following benefits contingent on Executive signing a release of claims provided
by the Company (substantially in the form attached hereto as Exhibit A, with such changes as the Company may determine to be required or reasonably advisable in order to make the release enforceable and otherwise compliant with applicable law)
(“Release”) and such Release becoming effective and irrevocable in accordance with its terms within twenty-eight (28) days after Executive’s Separation from Service: 

 

	 	(a)	 Subject to Section 1(e) of this Agreement, Base Salary continuation for a period of eighteen
(18) months from the effective date of Executive’s termination from the Company, payable in accordance with the Company’s normal payroll practices in effect at the applicable time, commencing within ten (10) days after
Executive’s Release becomes effective and irrevocable in accordance with its terms. 

  

	 	(b)	 Any short-term incentive that would have been earned (based on actual Company performance during the entire
fiscal year and assuming that any individual goals applicable to Executive were satisfied at the “target” level) will be payable on a pro-rata basis based on the number of weeks that Executive worked
in the current fiscal year. This amount will be payable at the same time as the short-term incentive is paid to similarly situated active employees of the Company. 

 

	 	(c)	 All long-term incentives (including, without limitation, stock options) will be governed by the terms of the
Stockholder’s Agreement between the Company and Executive dated October 16, 2012 (the “Stockholder’s Agreement”). 

 

	 	(d)	 Subject to Section 1(e) of this Agreement, the Company will provide six (6) months of outplacement
service with a reputable outplacement consultant chosen by the Company. 

  

	 	(e)	 Executive agrees immediately to advise Company when Executive commences employment, self-employment, a
consulting arrangement or other compensated work (the “New Arrangement”) during the period of Base Salary continuation pursuant to this Section 1, and to provide Company with sufficient information concerning the New
Arrangement so that the Company can determine the equivalency of the New Arrangement and the Executive’s prior employment with the Company. Company shall have no obligation to continue payment of the Base Salary if Executive does not provide
sufficient 

	 	
information regarding the New Arrangement, and the period of the payment obligation (i) shall not be extended due to Executive’s failure to timely provide notice of the New Arrangement,
and (ii) in no event shall such time period extend beyond the date that is 18 months from the effective date of Executive’s termination of employment. If the Company determines in its reasonable discretion that the New Arrangement is at
least generally equivalent to Executive’s prior employment with the Company, Base Salary continuation pursuant to Section 1(a) hereof and outplacement service pursuant to Section 1(d) hereof shall cease immediately and the Company
shall have no further obligations to Executive pursuant to Sections 1(a) and 1(d). If the Company determines in its reasonable discretion that the New Arrangement is less than the Executive’s prior compensation with the Company, the
Company’s obligation to pay Base Salary shall be reduced by the amount of the New Arrangement. In making its determination of equivalency pursuant to this Section 1(e), the Company may consider the total compensation package associated
with the New Arrangement including base compensation, short-term and long-term incentive compensation, equity grants and fringe benefits. If there is any overpayment of Base Salary due to a New Arrangement, the Company will be entitled to recoup any
such overpayment from the Executive. 

 2. Change of Control Severance Benefits upon Certain Separations
from Service Occurring After a Change of Control. If within twelve (12) months after the occurrence of a Change of Control, Executive has a Separation from Service by the Company without Cause, or by Executive for Good Reason, Executive
shall be entitled to the following as Change of Control Severance Benefits contingent on Executive signing a Release and such Release becoming effective and irrevocable in accordance with its terms within twenty-eight (28) days after
Executive’s Separation from Service: 
  

	 	(a)	 Base Salary continuation for a period of twenty-four (24) months from the effective date of the Separation
of Service, payable in accordance with the Company’s normal payroll practices in effect at the applicable time, commencing within ten (10) days after Executive’s Release becomes effective and irrevocable in accordance with its terms.

  

	 	(b)	 Pay out of the current fiscal year’s short-term incentive without proration at the greater of (i) the
“target” payout for the current fiscal year, or (ii) Executive’s average actual short-term incentive payout for the three (3) fiscal years immediately preceding the current fiscal year (or the portion of such three-year
period that Executive was employed by the Company). Any amount payable pursuant to this Section 2(b) shall be paid within ten (10) days after Executive’s Release becomes effective and irrevocable in accordance with its terms.

  

	 	(c)	 All long-term incentives (including, without limitation, stock options) will be governed by the terms of the
Stockholder’s Agreement. 

  

	 	(d)	 The Company will provide six (6) months of outplacement services with a reputable outplacement consultant
chosen by the Company. 

 3. Earned but Unpaid Base Salary and Accrued Paid Time Off Pay Payable Upon
Any Separation from Service. Upon Executive’s Separation from Service for any reason and at any time, the Company shall pay to Executive (or, where applicable, to Executive’s Beneficiary), not later than ten (10) days
after the Separation from Service, (a) all earned but unpaid Base Salary through the date of Separation from Service, and (b) any Paid Time Off (“PTO”) in accordance with the company’s PTO policy. 

  
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 4. Separation from Service Due to Retirement, Disability, or
Death. If Executive has a Separation from Service due to Retirement, Disability, or death while this Agreement remains in effect (whether before or after the occurrence of a Change of Control), neither Executive nor Executive’s
Beneficiaries will be entitled to Severance Benefits or Change of Control Severance Benefits under either of Sections 1 or 2 but Executive or Executive’s Beneficiaries, as applicable, will be entitled to the payments provided for in
Section 3 and to such benefits as may be provided under the terms of the Company’s disability, retirement, survivor’s benefits, insurance, and other applicable plans and programs of the Company then in effect. 

5. Separation from Service for Cause or by Executive other than for Good Reason. If Executive has a Separation
from Service by the Company for Cause (whether before or after the occurrence of a Change of Control) or by Executive for any reason other than for Good Reason within 12 months after a Change of Control, and Section 6 does not apply, neither
Executive nor Executive’s Beneficiaries will be entitled to Severance Benefits or Change of Control Severance Benefits under either of Sections 1 or 2 but Executive or Executive’s Beneficiaries, as applicable, will be entitled to the
payments provided for in Section 3 and the Company shall pay to Executive such other amounts to which Executive is entitled under any compensation plans of the Company, at the time such payments are due. Except as provided in this
Section 5, the Company shall have no further obligations to Executive under this Agreement. 
 6. Special Provision
Applicable only if Executive has a Separation from Service both in Advance of and in Contemplation of a Change of Control. If Executive has a Separation from Service by the Company (a) in contemplation of and not more than six
(6) full calendar months before the occurrence of a Change of Control, and (b) under circumstances such that if the Separation from Service had occurred immediately after that Change of Control Executive would have been entitled to Change
of Control Severance Benefits under Section 2 above, then contingent on Executive signing a Release and such Release becoming effective and irrevocable in accordance with its terms within twenty-eight (28) days after Executive’s
Separation from Service, the Company shall pay and provide to Executive all of the amounts and benefits specified in Section 2, reduced by such amounts and such benefits, if any, that the Company has otherwise paid and provided to Executive
pursuant to Section 1 above. The Company shall make any cash payment required pursuant to this Section 6 on the later to occur of (i) ten (10) days after Executive’s Release becomes effective and irrevocable in accordance with
its terms, or (ii) the occurrence of the Change of Control. 
 7. Change of Control Ignored if Employment Continues
for More than One Year Thereafter. If Executive’s employment continues for more than one (1) year following the occurrence of any Change of Control, that particular Change of Control will be deemed never to have
occurred for purposes of this Agreement. 
 8. Term of Agreement. This Agreement shall continue in
effect until a Separation from Service occurs pursuant to one of Sections 1, 2, 4, or 5, with due consideration of Sections 3, 6 and 7 hereof. The parties may, by mutual agreement, at any time and from time to time modify or terminate the term of
this Agreement under this Section 8. 
 9. Excise Tax. If there is any conflict between the
provisions of this Section 9 and any other provision of this Agreement regarding payments to be made or benefits to be provided to Executive under this Agreement following a Change of Control, the provisions of this Section 9 shall govern.

 9.1 Acknowledgement. The Company and Executive acknowledge that, following a Change of Control, one or more
payments or distributions to be made by the Company to or for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, under some other plan, agreement, or arrangement, or otherwise,
and including, without 

  
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limitation, any income recognized by Executive upon exercise of an option granted by the Company to acquire Common Shares issued by the Company) (a “Payment”) may be
determined to be an Excess Parachute Payment that is not deductible by the Company for federal income tax purposes and with respect to which Executive will be subject to an excise tax because of Sections 280G and 4999, respectively, of the Code
(hereinafter referred to respectively as “Section 280G” and “Section 4999”). 

9.2 Procedure. Prior to and in connection with any Change of Control, the Company shall cause the Accounting Firm,
which shall make all determinations required to be made under this Section 9, to determine (a) the maximum amount of Parachute Payments that Executive may receive without becoming subject to the excise tax imposed by Section 4999 and
without the Company suffering a loss of deduction under Section 280G (this maximum amount being the “280G Limit”); and (b) whether, if all Payments were made without regard to this Section 9 and after taking
into account any value (as determined by the Accounting Firm) attributable to the non-competition covenant in Section 13, any Payment would be an Excess Parachute Payment. If the Accounting Firm
determines that any Payment to Executive (if made without regard to this Section 9 and after taking into account any value (as determined by the Accounting Firm) attributable to the non-competition
covenant in Section 13) would be an Excess Parachute Payment, then the treatment of Executive’s Payments shall be determined in accordance with Section 9.3 or Section 9.4, as applicable. The Accounting Firm shall communicate its
determination, together with detailed supporting calculations, to the Company and to Executive at least 10 business days prior to the Change of Control or such earlier time as is requested by the Company. The Company and Executive shall cooperate
with each other and the Accounting Firm and shall provide necessary information so that the Accounting Firm may make all such determinations. The Company shall pay all of the fees of the Accounting Firm for services performed by the Accounting Firm
as contemplated in this Section 9. All determinations made by the Accounting Firm under this Section 9 shall be binding upon Executive and the Company. 

9.3 Company has no Readily Tradable Stock—Reduction in Payments Unless Approved by Shareholders. If,
immediately prior to a Change in Control, no stock in the Company is readily tradable on an established securities market or otherwise (within the meaning of Q/A-6), the Company shall make its best efforts to
avail itself of the exemption from Sections 280G and 4999 set forth in Q/A-6(a)(2) by making its best efforts to obtain shareholder approval (in accordance with Q/A-7)
of any Parachute Payments that would exceed the 280G Limit (if all Payments were made without regard to this Section 9), subject to Executive’s consent to forfeit any such amounts the payment of which is not so approved by shareholders. If
Executive fails to consent to forfeiture of amounts required to obtain the exemption set forth in Q/A-6(a)(2), or if shareholder approval is not obtained in accordance with
Q/A-7, then the Parachute Payments to be made to Executive without regard to this Section 9 shall be reduced, but not below zero, by such amount so that the aggregate value of the Parachute Payments
actually made to Executive will be One Dollar ($1.00) less than the 280G Limit. In the event that any Parachute Payment is required to be reduced pursuant to this Section 9.3, the reduction shall be made by first reducing any specified
Parachute Payments that Executive consented to forfeit if not approved by shareholders and that were not approved by shareholders, and then, to the extent necessary, by reducing Executive’s remaining Parachute Payments in the following order:
(a) Base Salary continuation under Section 2(a) of this Agreement, (b) short-term incentive payment under Section 2(b) of this Agreement, (c) outplacement benefits under Section 2(d) of this Agreement, and
(d) accelerated vesting (if any) of long-term incentives, with any such reduction applicable first to any long-term incentive awards with vesting otherwise contingent only upon continued service, in either case in the reverse order of the date
of grant of such long term incentive awards. 
 9.4 Company has Readily Tradable Stock—Reduction in Payments if
Reduced Payments Would Provide Greater Net After-Tax Benefit to Executive. If immediately prior to a Change in Control, any stock in the Company is readily tradable on an established securities market
or otherwise (within the meaning of Q/A-6), then either (a) the payments to be made to Executive under this Agreement 

  
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without regard to this Section 9 shall be reduced as provided in this Section 9.4, or (b) the Company shall make all of the payments to be made to Executive under all of the
provisions of this Agreement. The payments to be made to Executive under this Agreement without regard to this Section 9 shall be reduced pursuant to this Section 9.4 only if the Accounting Firm determines that Executive would have a
greater Net After-Tax Benefit if Executive’s payments under this Agreement were reduced, but not below zero, by such amount so that the aggregate value of the Parachute Payments actually made to Executive
will be One Dollar ($1.00) less than the 280G Limit. If instead the Accounting Firm determines that Executive would have a greater Net After-Tax Benefit if Executive’s payments under this Agreement were
not so reduced, Executive shall receive all Payments to which Executive is entitled, subject to the excise tax under Sections 4999 and 280G (and all other applicable taxes). In the event that any Parachute Payment is required to be reduced pursuant
to this Section 9.4, the reduction shall be made by reducing the amounts to be paid under this Agreement in the following order: (a) Base Salary continuation under Section 2(a) of this Agreement, (b) short-term incentive payment
under Section 2(b) of this Agreement, (c) outplacement benefits under Section 2(d) of this Agreement, and (d) accelerated vesting (if any) of long-term incentives under Section 2(c) of this Agreement, with any such reduction
applicable first to any long-term incentive awards with vesting otherwise contingent upon performance and then to any long-term incentive awards with vesting otherwise contingent only upon continued service, in either case in the reverse order of
the date of grant of such long term incentive awards. 
 10. The Company’s Payment Obligation 

10.1 Change of Control Severance Benefit Payment Obligation Absolute. Except as otherwise provided in
Section 9, the Company’s obligation to make the payments and provide the benefits provided for in Section 2 herein shall be absolute and unconditional, and shall not be affected by any circumstances, including, without limitation, any
offset, counterclaim, recoupment, defense, or other right which the Company may have against Executive or anyone else. All payments by the Company pursuant to Section 2 herein shall be paid without notice or demand. Each and every payment made
by the Company pursuant to Section 2 herein shall be final, and the Company shall not seek to recover all or any part of such payment from Executive or from whomsoever may be entitled thereto, for any reasons whatsoever. This Section 10.1
shall not be applicable to Severance Benefits made pursuant to Section 1 hereof. 
 10.2 No Mitigation.
Executive shall not be obligated to seek other employment in mitigation of the amounts payable or benefits to be provided under any provision of this Agreement, and, except as provided for in Section 1(e) of this Agreement, the obtaining of any
such other employment shall in no event effect any reduction of the Company’s obligations to make the payments or provide any benefits as required under this Agreement. 

10.3 Source of Payments and Benefits. All payments under this Agreement shall be made solely from the general
assets of the Company (or from a grantor trust, if any, established by the Company for purposes of making payments under this Agreement and other similar agreements), and Executive shall have the rights of an unsecured general creditor of the
Company with respect thereto. 
 11. Legal Remedies 

11.1 Payment of Legal Fees. In the event of litigation or arbitration with respect to the Severance Benefits or
Change of Control Severance Benefits provided for under this Agreement, the prevailing party shall be entitled to recover its legal fees, costs of arbitration and/or litigation, prejudgment interest, and other reasonable expenses. 

11.2 Arbitration. Subject to the following sentences, any dispute or controversy arising under or in connection
with this Agreement shall be settled by mandatory arbitration (in lieu of litigation), 

  
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conducted before a panel of three (3) arbitrators (unless the amount claimed is less than $100,000, in which case the arbitration shall be before a single arbitrator) sitting in Summit
County, Ohio, in accordance with the rules of the American Arbitration Association then in effect. Any dispute which arises with respect to Executive’s alleged violation of the non-competition and other
covenants set forth in Section 13 of this Agreement shall be settled by judicial proceedings in a state or federal court sitting in Summit County, Ohio. Except as provided above for claims or disputes under Section 13, judgment may be
entered on the award of the arbitrator in any court having proper jurisdiction. 
 12.
Withholding. The Company shall be entitled to withhold from any amounts payable under this Agreement all taxes as legally shall be required (including, without limitation, any United States federal income, FICA and
Medicare taxes, and any other state, city, or local taxes). 
 13. Restrictive Covenants. In
consideration of Executive’s employment by the Company and the benefits being provided to Executive pursuant to this Agreement, Executive agrees to be bound by the restrictive covenants contained in this Section 13. 

13.1 Obligation to Maintain Confidentiality. Executive agrees not to divulge to third parties, or use in a manner
not authorized by the Company, any confidential or Company proprietary information gathered or learned by Executive during his or her employment with the Company or a subsidiary or affiliate of the Company. “Confidential
Information” includes, but is not limited to, information in oral, written or recorded form regarding business plans, trade or business secrets, Company financial records, supplier contracts or relationships, or any other information
that the Company does not regularly disclose to the public. To the extent that Executive has any doubt as to whether information constitutes Confidential Information, Executive agrees to obtain advice from the Company’s General Counsel prior to
divulging or using such information. Executive understands and agrees that divulging such information to third parties, or using such information in an unauthorized manner, would cause serious competitive harm to the Company. Confidential
Information shall exclude: (a) information that is generally known by or available for use by the public, (b) information that was known by Executive prior to his or her employment with the Company (including its predecessor in interest,
affiliates and subsidiaries) and was obtained, to the best of Executive’s knowledge, without violation of any obligation of confidentiality to the Company, or (c) information that is required to be disclosed pursuant to applicable law or a
court order. If information is required to be disclosed because of a court order, Executive must notify the Company’s General Counsel immediately. Nothing in this section 13.1 shall be interpreted to preclude Executive from communicating to a
governmental agency about terms or conditions of employment or legal compliance issues, or from cooperating with an investigation being conducted by a governmental agency. 

13.2 Ownership of Property. Executive acknowledges that all discoveries, concepts, ideas, inventions, innovations,
improvements, developments, methods, processes, programs, designs, analyses, drawings, reports, patent applications, copyrightable work, and mask work (whether or not including any Confidential Information) and all registrations or applications
related thereto, all other proprietary information, and all similar or related information (whether or not patentable) that relate to the Company’s or any of its subsidiaries’ or affiliates’ actual or anticipated business, research
and development, or existing or future products or services, and that were or are conceived, developed, contributed to, made or reduced to practice by Executive (either solely or jointly with others) while employed by or in the service of the
Company or any of its subsidiaries or affiliates (including, without limitation, prior to the date of this Agreement) (including any of the foregoing that constitutes any proprietary information or records) (“Work Product”)
belong to the Company or such subsidiary or affiliate, and Executive hereby assigns, and agrees to assign, all of the above Work Product to the Company or to such subsidiary or affiliate. Any copyrightable work prepared in whole or in part by
Executive in the course of Executive’s work for any of the foregoing entities shall be deemed a “work made for hire” under the copyright laws, and the Company or such subsidiary or affiliate shall own all rights therein. To the extent
that any such copyrightable work 

  
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is not a “work made for hire”, Executive hereby assigns and agrees to assign to the Company or such subsidiary or affiliate all right, title, and interest, including without limitation,
copyright in and to such copyrightable work. Executive shall as promptly as practicable under the circumstances disclose such Work Product and copyrightable work to the Company and perform all actions reasonably requested by the Company (whether
during or after Executive’s employment with or service to the Company and its subsidiaries and affiliates) to establish and confirm the Company’s or such subsidiary’s or affiliate’s ownership (including, without limitation,
assignments, consents, powers of attorney, and other instruments). 
 13.3 Third Party Information. Executive
understands that the Company and its subsidiaries and affiliates will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on the Company’s and its subsidiaries
and affiliates’ part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the period of Executive’s employment with or service to the Company or its subsidiaries or affiliates and
thereafter, and without in any way limiting the provisions of Section 13.1 above, Executive will hold Third Party Information in the strictest confidence and will not disclose to any one (other than personnel and consultants of the Company or
its subsidiaries and affiliates who need to know such information in connection with their work for the Company or its subsidiaries and affiliates) or use, except in connection with Executive’s work for the Company or its subsidiaries and
affiliates, Third Party Information unless expressly authorized by the Company in writing or unless and to the extent that the Third Party Information (a) becomes generally known to and available for use by the public other than as a result of
Executive’s acts or omissions to act, (b) was known to Executive prior to Executive’s employment with or service to the Company or any of its subsidiaries and affiliates and was obtained, to the best of Executive’s knowledge,
without violation of any obligation of confidentiality to the Company, or (c) is required to be disclosed pursuant to any applicable law or court order. 

13.4 Noncompetition. Executive acknowledges that, in the course of Executive’s employment, Executive will
become familiar with the Company’s and its subsidiaries’ and affiliates’ trade secrets and with other confidential information concerning the Company and its subsidiaries and affiliates and that Executive’s services will be of
special, unique and extraordinary value to the Company and its subsidiaries and affiliates. Therefore, Executive agrees that while employed by the Company or any of its subsidiaries or affiliates, and continuing until (i) the eighteen
(18) month anniversary of the date of any termination of Executive’s employment (other than as a result of a Change in Control as provided in Paragraph 2 or 6), or (ii) twenty-four (24) months from the date of termination of
Executive’s employment as a result of a Change in Control as provided in Paragraph 2 or 6 (the “Noncompete Period”), Executive shall not, anywhere in the world where the Company or its subsidiaries or affiliates conduct
or actively propose to conduct business during Executive’s employment, directly or indirectly own, manage, control, participate in, consult with, be employed by or in any manner engage in (collectively, the “Restricted
Activities”) any business that is engaged in, or plans to be engaged in, the sale at retail or direct marketing (including online) to consumers of fabric, sewing or craft components (a “Competitive Business”),
provided that the Restricted Activities shall only be applicable to similar line(s) of business or similar functions conducted by the Competitive Business for which the Executive had knowledge, involvement, and/or responsibility while at the
Company. Further, Executive shall not conduct any of the Restricted Activities in similar line(s) of business or similar functions for which the Executive had knowledge, involvement, and/or responsibility while at the Company for any business that
had sales to the Company and its subsidiaries and affiliates during the immediately preceding fiscal year (a “Vendor Business”). Notwithstanding the foregoing, Executive may own up to 2% of any class of an issuer’s
publicly traded securities regardless of whether such entity is a Competitive Business. Nothing in this section 13.4 confers upon Executive any right to receive severance or obligates the Company to pay any severance to Executive in connection with
his or her termination of employment for any reason. 

  
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 13.5 Nonsolicitation. Executive makes the same acknowledgement
as is set forth in the first sentence of Section 13.4 above. Therefore, Executive agrees that during the Noncompete Period, Executive shall not directly or indirectly through another entity (i) induce or attempt to induce any employee of
the Company or its subsidiaries or affiliates to leave the employ of the Company or any of its subsidiaries or affiliates, or in any way interfere with the relationship between the Company or its subsidiaries or affiliates and any employee thereof,
(ii) hire any person who was an employee of the Company or any of its subsidiaries or affiliates within 180 days prior to the time such employee was hired by Executive, (iii) induce or attempt to induce any customer, supplier, licensee or
other business relation of the Company or its subsidiaries or affiliates to cease doing business with the Company or its subsidiaries or affiliates or in any way interfere with the relationship between any such customer, licensee or business
relation and the Company or its subsidiaries or affiliates, or (iv) directly or indirectly acquire or attempt to acquire an interest in any business relating to the business of the Company or its subsidiaries or affiliates and with which the
Company, its subsidiaries or affiliates has entered into substantive negotiations or has requested and received confidential information relating to the acquisition of such business by the Company, its subsidiaries or affiliates in the two-year period immediately preceding Executive’s termination of employment with the Company or any of its subsidiaries or affiliates. 

13.6 Enforcement. If, at the time of enforcement of Section 13.4 or 13.5 of this Agreement, a court holds
that the restrictions stated therein are unreasonable under circumstances then existing, the parties hereto agree that the maximum duration, scope or geographical area reasonable under such circumstances shall be substituted for the stated period,
scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum duration, scope and area permitted by law. Executive agrees that because his or her services are unique and Executive has access to
confidential information, money damages would be an inadequate remedy for any breach of this Section 13 and its subsections. Executive agrees that the Company, its subsidiaries and affiliates, in the event of a breach or threatened breach of
this Section 13 or any of its subsections, may seek injunctive or other equitable relief in addition to any other remedy available to them in a court of competent jurisdiction without posting bond or other security. 

13.7 Non-disparagement. Executive agrees that at no time during his or her
employment by the Company or any of its subsidiaries or affiliates or thereafter shall he or she make, or cause or assist any other person to make, any statement or other communication to any third party which impugns or attacks, or is otherwise
critical of, in any material respect, the reputation, business or character of the Company or any of its subsidiaries or affiliates or any of their respective directors, officers or employees; provided that Executive shall not be required to
make any untruthful statement or to violate any law. 
 13.8 Acknowledgments. Executive acknowledges that the
provisions of this Section 13 and its subsections are (a) in addition to, and not in limitation of, any obligation of Executive under the terms of any other agreement with the Company or any of its subsidiaries or affiliates (including,
without limitation, the restrictive covenants in Article IV of Executive’s Non-Qualified Stock Option Agreement of Jo-Ann Stores Holdings, Inc., which Executive
acknowledges remain in full force and effect in accordance with their terms), and (b) in consideration of (i) employment with the Company or any of its subsidiaries or affiliates, and (ii) additional good and valuable consideration as
set forth in this Agreement. In addition, Executive agrees and acknowledges that the restrictions contained in this Section 13 and its subsections do not preclude Executive from earning a livelihood, nor do they unreasonably impose limitations
on Executive’s ability to earn a living. Executive agrees and acknowledges that the potential harm to the Company or its subsidiaries or affiliates of the non-enforcement of this Section 13 and its
subsections outweighs any potential harm to Executive of its enforcement by injunction or otherwise. Executive acknowledges that he or she has carefully read this Agreement and has given careful consideration to the restraints imposed upon Executive
by this Agreement, and is in full accord as to their necessity for the reasonable and proper protection of confidential and proprietary information of the Company, and its subsidiaries and affiliates now existing or to be developed in the future.
Executive expressly acknowledges and agrees that each and every restraint imposed by this Agreement is reasonable with respect to subject matter, time period and geographical area. 

  
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 14. Successors and Assignment. 

14.1 Successors to the Company. The Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation, or otherwise) of all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform the Company’s obligations under this Agreement in the same manner and to the same extent that
the Company would be required to perform them if no such succession had taken place. 
 14.2 Assignment by
Executive. This Agreement shall inure to the benefit of and be enforceable by Executive and each of Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. If
Executive dies while any amount would still be payable to Executive hereunder had Executive continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement, to Executive’s
Beneficiary. If Executive has not named a Beneficiary, then such amounts shall be paid to Executive’s devisee, legatee, or other designee, or if there is no such designee, to Executive’s estate. 

15. Miscellaneous. 

15.1 Employment Status. Except as may be provided under any other agreement between Executive and the Company, the
employment of Executive by the Company is “at will” and, prior to the effective date of a Change of Control, may be terminated by either Executive or the Company at any time, subject to applicable law. 

15.2 Entire Agreement. Except with respect to the provisions of the Stockholder’s Agreement and the Option
Agreement expressly referenced herein, this Agreement sets forth the entire agreement between the parties with respect to severance benefits to be provided upon any termination of Executive’s employment and supersedes any and all prior
employment, retention, and/or change of control agreements between Executive and the Company. 
 15.3
Beneficiaries. Executive may designate one or more persons or entities as the primary and/or contingent Beneficiaries of any Severance Benefits or Change of Control Severance Benefits owing to Executive under this Agreement. Such
designation must be in the form of a signed writing acceptable to the Company. Executive may make or change such designation at any time. 

15.4 Severability. In the event any provision of this Agreement shall be held illegal or invalid for any reason,
the illegality or invalidity shall not affect the remaining parts of the Agreement, and the Agreement shall be construed and enforced as if the illegal or invalid provision had not been included. 

15.5 Modification. No provision of this Agreement may be modified, waived, or discharged unless such modification,
waiver, or discharge is agreed to in writing and signed by Executive (or his/her legal representative or successor) and by the Chief Administrative Officer or General Counsel of the Company. 

15.6 Applicable Law. To the extent not preempted by the laws of the United States, the laws of the State of Ohio,
applicable to contracts made and to be performed wholly within that state, shall be the controlling law in all matters relating to this Agreement. 

  
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 15.7 Section 409A. It is intended that the payments and benefits
provided under this Agreement shall be exempt from, or comply with, the requirements of Section 409A of the Code. This Agreement shall be construed, administered and governed in a manner that affects such intent. For purposes of
Section 409A of the Code, Executive’s right to receive any “installment” payments pursuant to this Agreement shall be treated as a right to receive a series of separate payments. Further, if the twenty-eight (28)-day period during which Executive’s Release must become effective and irrevocable in accordance with its terms pursuant to Section 1 or Section 2 of this Agreement begins in one calendar year and
ends in the next calendar year, then, to the extent required to comply with Section 409A of the Code, any payment to be made under Section 1 or Section 2 of this Agreement following the effectiveness and irrevocability of such Release
will be made (or commence) in the second calendar year. In no event will any in-kind benefits or reimbursements to which Executive may be entitled under this Agreement be provided after the end of the second
calendar year following the year of Executive’s Separation from Service. The payments and benefits provided under this Agreement may not be deferred, accelerated, extended, paid out or modified in a manner that would result in the imposition of
an additional tax under Section 409A of the Code upon Executive. Although the Company will use its best efforts to avoid the imposition of taxation, interest and penalties under Section 409A of the Code, the tax treatment of the benefits
provided under this Agreement is not warranted or guaranteed. Neither the Company, its affiliates nor their respective directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed
by Executive (or any other individual claiming a benefit through Executive) as a result of this Agreement. 
 16.
Definitions. Whenever used in this Agreement, the following capitalized terms shall have the meanings set forth below: 

16.1 “Accounting Firm” means the independent auditors of the Company for the Fiscal Year preceding the
year in which the Change of Control occurred and such firm’s successor or successors; provided, however, if such firm is unable or unwilling to serve and perform in the capacity contemplated by this Agreement, the Company shall select another
national accounting firm of recognized standing to serve and perform in that capacity under this Agreement, except that such other accounting firm shall not be the then independent auditors for the Company or any of its affiliates (as defined in
Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as amended). 
 16.2
“280G Limit” has the meaning assigned to it in Section 9.2. 
 16.3 “Base
Salary” means an amount equal to Executive’s base annual salary at the rate in effect immediately prior to Executive’s Separation from Service (and without regard to any reduction of base salary which would constitute Good
Reason for purposes of this Agreement) or, if higher, at the rate in effect immediately prior to a Change of Control. For this purpose, Base Salary shall not include bonuses, long-term incentive compensation, or any remuneration other than base
annual salary. 
 16.4 “Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 
 16.5
“Beneficiary” means the persons or entities designated or deemed designated by Executive pursuant to Section 15.3 herein. 

16.6 “Cause” shall mean the occurrence of any one or more of the following: (a) Executive’s
conviction for committing an act of fraud, embezzlement, theft, or other criminal act constituting a felony; (b) Executive’s commission of an act or omission reasonably likely to result in a conviction for fraud, embezzlement, theft, or
other criminal violation constituting a felony, (c) the engaging by Executive in gross negligence or gross misconduct (including dishonesty, disloyalty or 

  
 10 

 
misappropriation) that is materially and demonstrably injurious to the Company; (d) Executive’s material breach of the Company’s Code of Business Conduct; (e) the continued
failure by Executive to substantially perform his/her normal duties (other than any such failure resulting from Executive’s illness or injury), after a written demand for substantial performance is delivered to Executive that specifically
identifies the manner in which the Company believes that Executive has not substantially performed his/her duties, and Executive has failed to remedy the situation within thirty (30) days of receiving such notice; or (f) the continued
failure by Executive to achieve agreed-upon performance goals after a written notice of such deficiencies is delivered to Executive, and Executive has failed to come into compliance with the agreed-upon performance goals within a time period
designated by the Company which time period shall be a minimum of thirty (30) days from the receipt of such notice. 

16.7 “Change of Control” means (i) the sale of all or substantially all of the assets of the
Company, Jo-Ann Stores Holdings Inc. (“JSHI”) or any wholly owned subsidiary of JSHI that is situated between JSHI and the Company (an “Intermediate Subsidiary”)
to any other person or entity (other than the Company, any of its subsidiaries, Leonard Green & Partners L.P. (“LGP”), or any employee benefit plan maintained by the Company or any of its subsidiaries), or
(ii) a change in Beneficial Ownership or control of the Company, JSHI or any Intermediate Subsidiary effected through a transaction or series of transactions (other than an offering of Common Stock or other securities to the general public
through a registration statement filed with the Securities and Exchange Commission) whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other
than the Company, any of its subsidiaries, LGP, or any employee benefit plan maintained by the Company or any of its subsidiaries), directly or indirectly acquires Beneficial Ownership of securities of the Company, JSHI or any Intermediate
Subsidiary possessing more than 50% of the total combined voting power of such entity’s securities outstanding immediately after such acquisition. Notwithstanding the foregoing, to the extent necessary to comply with Section 409A of the
Code, a Change of Control shall not be deemed to occur for purposes of Section 6 of this Agreement unless the transaction also constitutes a “change in the ownership”, a “change in the effective control” or a “change in
the ownership of a substantial portion of the assets of” the Company or another corporation that is either a majority shareholder of the Company or a member of a chain of corporations (in which each corporation is a majority shareholder of
another corporation in the chain) ending in the Company. 
 16.8 “Change of Control Severance
Benefits” means those payments and benefits that may become payable pursuant to Section 2 above. 
 16.9
“Code” means the United States Internal Revenue Code of 1986, as amended. 
 16.10
“Company” means Jo-Ann Stores, LLC, an Ohio limited liability company, and its successors. 

16.11 “Competitive Business” shall have the meaning set forth in Section 13.4 hereof. 

16.12 “Confidential Information” shall have the meaning set forth in Section 13.1 hereof. 

16.13 “Disability” means permanent and total disability, within the meaning of Code
Section 22(e)(3), as determined by the Company in the exercise of good faith and reasonable judgment, upon receipt of and in reliance on sufficient competent medical advice from one (1) or more individuals, selected by the Company, who are
qualified to give professional medical advice, provided, however, that Executive must be entitled to disability benefits under the Company sponsored disability plans or programs. 

  
 11 

 16.14 “Employer” means the Company and each
corporation or other entity with whom the Company would be considered a single employer under Code Sections 414(b) and 414(c), except that in applying Code Sections 1563(a)(1), (2) and (3) for purposes of determining a controlled group of
corporations under Code Section 414(b), the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place it appears in Code Sections 1563(a)(1), (2) and (3), and in applying Treas. Regs. Sec. 1.414(c)-2 for purposes of determining a controlled group of trades or businesses under Code Section 414(c), the language “at least 50 percent” shall be used instead of “at least 80 percent”
in each place it appears in Treas. Regs. Sec. 1.414(c)-2. 
 16.15 “Excess
Parachute Payment” has the meaning assigned to that term in Q/A-3 (note that although initial capital letters are used on this term in this Agreement, the Q/As do not use initial caps for this
term). 
 16.16 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

 16.17 “Good Reason” shall mean, on or after a Change of Control, any material adverse change by the
Company in Executive’s job title, duties, responsibility or authority; failure by the Company to pay Executive any amount of Base Salary or bonus when due; any material diminution of Executive’s Base Salary (other than such a material
diminution that is applied on a substantially comparable basis to similarly-situated employees of the Company); any material reduction in Executive’s short-term incentive compensation opportunities; the termination or denial of Executive’s
right to participate in material employment related benefits that are offered to similarly-situated employees of the Company; the movement of Executive’s principal location of work to a new location that is in excess of 50 miles from
Executive’s principal location of work as of the date hereof without Executive’s consent; or failure by the Company to require any successor to assume and agree to perform the Company’s obligations under this Agreement in accordance
with Section 14.1; provided that none of the events described in this definition of Good Reason shall constitute Good Reason unless Executive notifies the Company in writing of the event that is purported to constitute Good Reason (which notice
is provided not later than the 30th day following the occurrence of the event purported to constitute Good Reason) and then only if the Company fails to cure such event within 30 days after the
Company’s receipt of such written notice. 
 16.18 “Net After-Tax
Benefit” shall mean the aggregate present value of all Payments to Executive, net of all taxes imposed on Executive with respect thereto under Sections 1 and 4999 of the Code and under applicable state, local and other tax laws, as
determined by the Accounting Firm. 
 16.19 “Noncompete Period” shall have the meaning set forth in
Section 13.4 hereof. 
 16.20 “Payment” has the meaning assigned to that term in Section 9.1
above (except as otherwise provided in Section 1(a)). 
 16.21 “Parachute Payment” has the
meaning assigned to that term in Q/A-2 but without reference to subsection (4) of Q/A-2 (with the effect that a payment otherwise meeting the definition of
“Parachute Payment” will be referred to as a Parachute Payment even if the total of all such Parachute Payments is less than three times Executive’s base amount (as defined in Q/A-34) (note that
although initial capital letters are used on this term in this Agreement, the Q/A’s do not use initial caps for this term). 

16.22 “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act
and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d). 

  
 12 

 16.23 “Q/As” means the entire series of Questions and
Answers set forth in Section 1.280G-1 of the Treasury Regulations issued under Section 280G of the Code (which Section of regulations is presented in Questions and Answers format); references to
particular Questions and Answers will be, for example, to “Q/A-l”. 
 16.24
“Retirement” means a voluntary Separation from Service by Executive other than for Good Reason after Executive has either (a) attained age fifty-five (55) and has completed at least ten (10) full years of
continuous service with the Company, or (b) has attained age sixty-five (65) without regard to length of service. 

16.25 “Separation from Service” means Executive has a termination of employment with the Employer.
Whether a termination of employment has occurred shall be determined based on whether the facts and circumstances indicate that Executive and Employer reasonably anticipate that no further services will be performed by Executive for Employer;
provided, however, that Executive shall be deemed to have a termination of employment if the level of services he or she would perform for Employer after a certain date permanently decreases to no more than twenty percent (20%) of the average level
of bona fide services performed for Employer (whether as an employee or independent contractor) over the immediately preceding thirty-six (36)-month period (or the full period of services to Employer if
Executive has been providing services to Employer for less than thirty-six (36) months). For this purpose, Executive is not treated as having a Separation from Service while he or she is on a military
leave, sick leave, or other bona fide leave of absence, if the period of such leave does not exceed six (6) months, or if longer, so long as Executive has a right to reemployment with Employer under an applicable statute or by contract. 

16.26 “Severance Benefits” means those payments and benefits that may become payable before the
occurrence of a Change of Control pursuant to Section 1 above. 
 16.27 “Third Party Information”
shall have the meaning set forth in Section 13.3 hereof. 
 16.28 “Vendor Business” shall have
the meaning set forth in Section 13.4 hereof. 
 16.29 “Work Product” shall have the meaning set
forth in Section 13.2 hereof. 
 [signature page to follow] 

  
 13 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above. 
  

			
	JO-ANN STORES, INC.
		
	By:	 	 /s/ Janet Duliga

		 	Janet Duliga
		 	Chief Administrative Officer
	
	EXECUTIVE
	
	 /s/ Robert Will

	 Robert Will

  
 14 

 EXHIBIT A 

GENERAL RELEASE1 

This General Release (this “Release”) is entered into by and between
                             (“Executive”) and
JO-ANN STORES, LLC (the “Company”) (collectively, the “Parties”) as of the              day of
                        , 20        . 

NOW, THEREFORE, and in consideration of the mutual promises contained herein, and for other good and valuable consideration, the adequacy and
sufficiency of which are hereby acknowledged, the Parties agree as follows: 
 1. Employment Status. Executive’s employment with
the Company terminated effective as of                         ,
20        . 
 2. Payments and Benefits. Following the effectiveness of the terms set
forth herein, the Company shall provide Executive with certain benefits as provided in Section          of that certain Agreement between the Company and Executive dated as of
                        , 20         (the
“Agreement”). Such benefits shall be provided in accordance with the terms, and subject to the conditions, of the Agreement, including, but not limited to, the condition that this Release must become effective
and irrevocable in accordance with its terms within twenty-eight (28) days after Executive’s Separation from Service (as defined in the Agreement). Executive agrees that the consideration set forth above is more than Executive is legally
entitled to and reflects adequate consideration for the release of any potential claims that Executive may have arising from Executive’s employment and separation from employment with the Company. 

3. No Liability. This Release does not constitute an admission by the Company, or its managers, officers, employees, affiliates or
agents, or Executive, of any unlawful acts or of any violation of federal, state or local laws. 
 4. Claims Released by Executive.
In consideration of the payments and benefits described in Section 2 of this Release, and by signing this Release, Executive agrees on behalf of Executive and his or her agents, heirs, executors, administrators, and assigns to unconditionally
release, acquit, and forever discharge the Company, its parents, subsidiaries, and affiliates, and each of their respective agents, directors, managers, officers, employees, partners, shareholders, members, representatives, successors, insurers,
assigns, and all persons acting by, through, under or in concert with any of them (“Releasees”) from any and all actions, complaints, claims, liabilities, obligations, promises, agreements, damages, demands,
losses, and expenses of any nature whatsoever, known or unknown, suspected or unsuspected, including, but not limited to, rights under federal, state or local laws prohibiting discrimination (including but not limited to the Federal Age
Discrimination in Employment Act) and claims for wrongful discharge, breach of contract, either oral or written, breach of any employment policy or any other claim against Releasees which Executive now has, heretofore had or at any time hereafter
may have against Releasees arising prior to the date hereof and arising out of or in connection with Executive’s employment or separation from employment with the Company. 

Executive acknowledges and understands that this is a general release which releases the Releasees from any and all claims that Executive may
have under federal, state or local laws or common law, including but not limited to claims arising under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et seq., 

 

	1 	 This form of General Release has been reviewed for compliance with Ohio law as of October 2020, and may need
to be updated, as necessary, for terminations that may occur at subsequent dates and/or in other jurisdictions, or in the context of a mass layoff. 

  
 15 

 
as amended, the Age Discrimination in Employment Act, 29 U.S.C. §§ 621 et seq., the Older Workers Benefit Protection Act, the Americans with Disabilities Act, 42 U.S.C. §
12101, et seq., the Fair Labor Standards Act, 29 U.S.C. § 201, et seq., the Employee Retirement Income Security Act, and the Consolidated Omnibus Budget Reconciliation Act. This Release does not apply to any claim that as a matter
of law cannot be released, or to any rights or claims that may arise after the date Executive executes this Release. 
 Without limiting the
foregoing, Executive represents that he or she understands that this Release specifically releases and waives any claims of age discrimination, known or unknown, that Executive may have against Releasees as of the date Executive signs this Release.
This Release specifically includes a waiver of rights and claims under the Age Discrimination in Employment Act of 1967, as amended, and the Older Workers Benefit Protection Act. Executive acknowledges that as of the date he or she signs this
Release, Executive may have certain rights or claims under the Age Discrimination in Employment Act, 29 U.S.C. §626, and Executive voluntarily relinquishes any such rights or claims by signing this Release. 

Nothing in this Release will prohibit Executive from communicating to and cooperating with any federal, state or local governmental agency in
any investigation concerning the Company (including without limitation the Securities and Exchange Commission (“SEC”), the National Labor Relations Board, the Occupational Safety and Health Administration and
the Equal Employment Opportunity Commission (“EEOC”)), but Executive acknowledges that this Release will bar Executive from recovering any funds in any future proceeding, including any brought by the EEOC or any similar state
and local agencies. Further, Executive specifically waives any right to receive any benefit or remedy as a consequence of filing a charge of discrimination with the EEOC or any similar state and local agencies. Notwithstanding the prior two
sentences, Executive may receive incentive payments under SEC Rule 21F-17 and similar rules of other governmental agencies. 

5. Bar. Executive, on behalf of Executive and his or her agents, heirs, executors, administrators, and assigns, also agrees and
covenants not to file a lawsuit or to assert any claim with respect to any claims released or waived under this Release, and Executive agrees that Executive will not institute any actions, causes, suits, debts, liens, claims or demands for released
matters, whether known or unknown, against Releasees or attributable to Releasees in any way. Execution of this Release by Executive operates as a complete bar and defense against any and all of the released claims against Releasees. If Executive or
any of Executive’s agents, heirs, executors, administrators, and assigns should make any claims against any of the Releasees in any complaint, action, claim, or proceeding (with the exception of claims to enforce the Agreement and claims not
released herein), this Release may be raised as and shall constitute a complete bar to any such complaint, action, claim, or proceeding, and Releasees shall be entitled to and shall recover from Executive all costs incurred, including
attorneys’ fees, in defending against any such complaint, action, claim, or proceeding to the fullest extent. Executive and the Company agree that this Release may be introduced into evidence by a party in the event either party attempts to or
actually commences any legal, equitable or administrative action, arbitration or other proceeding against the other party or any of its affiliated entities or any of the Releasees. 

6. Confidentiality/Non-Disparagement/Restrictive Covenants. Except as permitted by the fourth
paragraph of Section 4 above, Executive agrees not to divulge to third parties or use any confidential or Company proprietary information gathered or learned by Executive in the scope of his or her employment with the Company. Confidential
information includes, but is not limited to, information in oral, written or recorded form regarding business plans, trade or business secrets, Company financial records, supplier contracts or relationships, or any other information that the Company
does not regularly disclose to the public. To the extent that Executive has any doubt, either now or in the future, as to whether information Executive possesses is confidential or Company proprietary, Executive should contact the Company’s
General Counsel for clarification before divulging or using such information. Executive understands and 

  
 16 

 
agrees that divulging such information to third parties or Executive’s unauthorized use of it would cause serious competitive harm to the Company. Confidential information shall exclude:
(a) information that is generally known by or available for use by the public, (b) information that was known by Executive prior to his or her employment with the Company (including its predecessor in interest, affiliates and subsidiaries)
and was obtained, to the best of Executive’s knowledge, without violation of any obligation of confidentiality to Company, or (c) information that is required to be disclosed pursuant to applicable law or a court order. If information is
required to be disclosed because of a court order, Executive must notify the Company’s General Counsel immediately. 
 Executive agrees
that the terms of this Release are confidential and that Executive will not disclose any information concerning this Release to any person other than Executive’s immediate family members and professional advisors who also agree to keep said
information confidential, not to disclose it to others and not to use such information for any purpose other than advising Executive with respect to Executive’s rights and obligations under this Release, except as permitted under the fourth
paragraph of Section 4 above. Executive also may make such disclosures as are required by law. Any disclosure in violation of the foregoing is a material breach of this Release giving rise to an appropriate remedy as determined by a court of
law or equity. 
 Executive agrees that he or she is prohibited from and will refrain from sharing all Company- related materials in
Executive’s possession with those who have not been authorized to receive such information, including but not limited to any competitors or retailers selling crafts, fabrics or other product lines also sold by the Company. 

Executive acknowledges that he or she remains subject to the restrictive covenants referenced in Section 13 of the Agreement. 

Each Party covenants not to make any disparaging statements or comments about the other party to any person or entity by any medium, whether
oral or written. 
 7. Governing Law. To the extent not preempted by the laws of the United States, the laws of the State of Ohio,
applicable to contracts made and to be performed wholly within that state, shall be the controlling law in all matters relating to this Release. 

8. Acknowledgment. Executive has read this Release, understands it, and voluntarily accepts its terms, and Executive acknowledges that
he or she has been advised by the Company to seek the advice of legal counsel before entering into this Release. Executive acknowledges that he or she was given a period of twenty-one (21) calendar days
within which to consider and execute this Release, and to the extent that he or she executes this Release before the expiration of the 21-day period, he or she does so knowingly and voluntarily and only after
consulting his or her attorney. 
 9. Revocation. Executive understands that he or she has a period of seven (7) calendar days
following the execution of this Release during which Executive may revoke this Release by delivering written notice to the Company, and this Release shall not become effective or enforceable until such revocation period has expired. Executive
understands that if he or she revokes this Release, it will be null and void in its entirety and Executive will not be entitled to any payments or benefits provided in Section 2. 

10. Miscellaneous. This Release is the complete understanding between Executive and the Company in respect of the subject matter of
this Release and supersedes all prior agreements relating to Executive’s employment with the Company, except those provisions of the Agreement that survive the termination of Executive’s employment and agreements that Executive has entered
into with the Company 

  
 17 

 
pertaining to confidentiality or ownership of intellectual property or Company proprietary information. Executive has not relied upon any representations, promises or agreements of any kind
except those set forth herein and in the Agreement in signing this Release. In the event that any provision of this Release should be held to be invalid or unenforceable, each and all of the other provisions of this Release shall remain in full
force and effect. If any provision of this Release is found to be invalid or unenforceable, such provision shall be modified as necessary to permit this Release to be upheld and enforced to the maximum extent permitted by law. Executive
agrees to execute such other documents and take such further actions as reasonably may be required by the Company to carry out the provisions of this Release. 

11. Counterparts. This Release may be executed by the parties hereto in counterparts (including by means of facsimile or other
electronic transmission), each of which shall be deemed an original, but all of which taken together shall constitute one original instrument. 

IN WITNESS WHEREOF, the parties have executed this Release on the date first set forth above. 

 

			
	JO-ANN STORES, LLC
	
	 
	 Name:

	 Title:

	
	EXECUTIVE
	
	 
	 Name:

  
 18EX-10.10

 Exhibit 10.10 

EXECUTION COPY 
 STOCK
OPTION PLAN 
 OF 
 JO-ANN STORES HOLDINGS INC. 
 OCTOBER 16, 2012 

Jo-Ann Stores Holdings Inc., a Delaware corporation (the “Company”), hereby assumes
and adopts this Stock Option Plan of Jo-Ann Stores Holdings Inc. (the “Plan”). Prior to such assumption and adoption, this Plan was known as the 2011 Stock Option Plan of Needle Holdings Inc.
and was maintained by, and provided for the issuance of shares of common stock of, Needle Holdings Inc. This Plan is being assumed by the Company in accordance with a transaction described in Section 7.1. Options to purchase shares of Needle
Holdings Inc. common stock that were outstanding as of the date of such transaction were converted into Options to purchase Common Stock that are subject to the terms of this Plan. The purposes of the Plan are as follows: 

(1) To further the growth, development and financial success of the Company and its Subsidiaries (as defined herein) by providing additional
incentives to Employees, Consultants and Independent Directors (as such terms are defined below) of the Company and its Subsidiaries who have been or will be given responsibility for the management or administration of the Company’s or one of
its Subsidiaries’ business affairs, by assisting them to become owners of Common Stock (as defined herein), thereby enabling them to benefit directly from the growth, development and financial success of the Company and its Subsidiaries. 

(2) To enable the Company and its Subsidiaries to obtain and retain the services of the type of professional, technical and managerial
Employees, Consultants and Independent Directors considered essential to the long-range success of the Company and its Subsidiaries by providing and offering them an opportunity to become owners of Common Stock through the exercise of Options (as
defined herein), including, in the case of certain Employees, Options that are intended to qualify as “incentive stock options” under Section 422 of the Code (as defined herein). 

ARTICLE I. 

DEFINITIONS 

Whenever the following terms are used in this Plan, they shall have the meaning specified below unless the context clearly indicates to the
contrary. The singular pronoun shall include the plural where the context so indicates. 
 Section 1.1
“Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person where “control” shall have the meaning given such term under
Rule 405 of the Securities Act. 
 Section 1.2 “Board” shall mean the Board of Directors of the
Company. 

 Section 1.3 “Change in Control” shall mean
(a) the sale of all or substantially all of the assets of the Company, Jo-Ann Stores, Inc., an Ohio corporation (“Jo-Ann Stores”) or any
wholly-owned subsidiary between the Company and Jo-Ann Stores (an “Intermediate Subsidiary”) to any other person or entity (other than the Company, any of its Subsidiaries, LGP, or any
employee benefit plan maintained by the Company or any of its Subsidiaries), or (b) a change in beneficial ownership or control of the Company, Jo-Ann Stores or any Intermediate Subsidiary effected
through a transaction or series of transactions (other than an offering of Common Stock or other securities to the general public through a registration statement filed with the Securities and Exchange Commission) whereby any “person” or
related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than the Company, any of its Subsidiaries, LGP, or any employee benefit plan maintained by the Company or any of its
Subsidiaries), directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company, Jo-Ann Stores
or any Intermediate Subsidiary possessing more than 50% of the total combined voting power of such entity’s securities outstanding immediately after such acquisition. 

Section 1.4 “Code” shall mean the Internal Revenue Code of 1986, as amended. 

Section 1.5 “Committee” shall mean the Committee appointed as provided in Section 6.1. 

Section 1.6 “Common Stock” shall mean the common stock, par value $0.01 per share, of the Company.

 Section 1.7 “Company” shall mean Jo-Ann Stores
Holdings Inc., a Delaware corporation. In addition, “Company” shall mean any corporation assuming, or issuing new employee stock options in substitution for, Incentive Stock Options outstanding under the Plan in a transaction to which
Section 424(a) of the Code applies. 
 Section 1.8 “Consultant” shall mean any consultant or
adviser if: (a) the consultant or adviser renders bona fide services to the Company or a Subsidiary; (b) the services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a
capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities; and (c) the consultant or adviser is a natural person. 

Section 1.9 “Director” shall mean a member of the Board. 

Section 1.10 “Eligible Representative” for an Optionee shall mean such Optionee’s personal
representative or such other person as is empowered under the deceased Optionee’s will or the then applicable laws of descent and distribution to represent the Optionee hereunder. 

Section 1.11 “Employee” shall mean, with respect to any entity, any employee of such entity (as
defined in accordance with the regulations and revenue rulings then applicable under Section 3401(c) of the Code). 

Section 1.12 “Equity Restructuring” shall mean a
non-reciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization through a
large, nonrecurring cash dividend, that affects the shares of Common Stock (or other securities of the Company) or the share price of the Common Stock (or other securities) and causes a change in the per share value of the Common Stock underlying
outstanding Options. 

  
 2 

 Section 1.13 “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended. 
 Section 1.14 “Fair Market Value” of a share of
Common Stock as of a given date shall be: 
 (a) The closing price of a share of Common Stock on the New York Stock Exchange, Nasdaq or such
other principal exchange on which such shares are then trading, if any (or as reported on any composite index which includes the New York Stock Exchange, Nasdaq or such other principal exchange), for the most recent trading day prior to such
determination date on which a sale occurred; or 
 (b) If Common Stock is not traded on an exchange but is quoted on a quotation system, the
mean between the closing representative bid and asked prices for a share of Common Stock on the most recent trading day prior to such determination date on which sales prices or bid and asked prices, as applicable, are reported by such quotation
system; or 
 (c) If Common Stock is not publicly traded on an exchange and not quoted on a quotation system, the fair market value of a
share of Common Stock as determined by the Board in its sole discretion. 
 Section 1.15 “Incentive Stock
Option” shall mean an Option that conforms to the applicable provisions of Section 422 of the Code and that is designated as an Incentive Stock Option by the Committee. 

Section 1.16 “Independent Director” shall mean a member of the Board who is not an Employee of the
Company or any of its Subsidiaries. 
 Section 1.17 “Initial Public Offering” shall mean the
first issuance by the Company of any class of common equity securities that is required to be registered (other than on a Form S-8) under Section 12 of the Exchange Act. 

Section 1.18 “Intermediate Subsidiary” has the meaning set forth in Section 1.3. 

Section 1.19 “Jo-Ann Stores” has the meaning set forth in
Section 1.3. 
 Section 1.20 “LGP” shall mean, collectively, Green Equity Investors V, Green
Equity Investors Side V, LP and Needle Coinvest LLC. 
 Section 1.21
“Non-Qualified Stock Option” shall mean an Option which is not an “incentive stock option” within the meaning of Section 422 of the Code. 

Section 1.22 “Officer” shall mean an officer of the Company, as defined in Rule 16a-l(f) under the Exchange Act, as such Rule may be amended from time to time. 

Section 1.23 “Option” shall mean an option granted under the Plan to purchase Common Stock. Subject
to Section 3.2, an Option shall, as determined by the Committee, be either an Incentive Stock Option or a Non-Qualified Stock Option. 

  
 3 

 Section 1.24 “Optionee” shall mean an Employee,
Consultant or Independent Director to whom an Option is granted under the Plan. 
 Section 1.25
“Person” shall mean an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever
nature. 
 Section 1.26 “Plan” shall mean this Stock Option Plan of Jo-Ann Stores Holdings Inc. (formerly known as the 2011 Stock Option Plan of Needle Holdings Inc.), as amended from time to time. 

Section 1.27 “Rule 16b-3” shall mean Rule 16b-3 promulgated under the Exchange Act, as such Rule may be amended from time to time. 

Section 1.28 “Securities Act” shall mean the Securities Act of 1933, as amended. 

Section 1.29 “Stock Option Agreement” shall have the meaning set forth in Section 4.1. 

Section 1.30 “Stockholders Agreement” shall mean an agreement by and between the Optionee and the
Company which contains certain restrictions and limitations applicable to the shares of Common Stock acquired upon Option exercise (and/or to other shares of Common Stock, if any, held by the Optionee during the term of such agreement), the terms of
which shall be determined by the Board in its discretion. 
 Section 1.31 “Subsidiary” of any
entity shall mean any corporation in an unbroken chain of corporations beginning with such entity if each of the corporations other than the last corporation in the unbroken chain then owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain. 
 Section 1.32 “Termination
of Consultancy” shall mean the time when the engagement of an Optionee as a Consultant to the Company or a Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, by resignation, discharge,
death or retirement, but excluding a termination where there is a simultaneous commencement of employment with the Company or any Subsidiary. The Committee, in its sole discretion, shall determine the effect of all matters and questions relating to
Termination of Consultancy. 
 Section 1.33 “Termination of Directorship” shall mean the time
when an Optionee who is an Independent Director ceases to be a Director for any reason, including but not by way of limitation, a termination by resignation, failure to be elected or appointed, death or retirement. The Board, in its sole discretion,
shall determine the effect of all matters and questions relating to Termination of Directorship. 
 Section 1.34
“Termination of Employment” shall mean the time when the employee-employer relationship between an Optionee and the Company (and its Subsidiaries), is terminated for any reason, with or without cause, including, but not by way of
limitation, a termination by resignation, discharge, death or retirement, but excluding a termination where there is a simultaneous reemployment by the Company or one of its Subsidiaries of the Employee. The Committee shall determine the effect of
all matters and questions relating to 

  
 4 

 
Termination of Employment, including, but not by way of limitation, the question of whether a Termination of Employment resulted from a discharge for cause, and all questions of whether a
particular leave of absence constitutes a Termination of Employment; provided, however, that, with respect to Incentive Stock Options, a leave of absence shall constitute a Termination of Employment if, and to the extent that, such leave of
absence interrupts employment for the purposes of Section 422(a)(2) of the Code and the then applicable regulations and revenue rulings under Section 422(a)(2) of the Code. 

Section 1.35 “Termination of Services” shall mean the time of any Termination of Employment,
Termination of Consultancy or Termination of Directorship, as applicable, following which an Optionee no longer provides any services to the Company or any Subsidiary as (a) an Employee, (b) a Consultant, or (c) an Independent
Director. 
 ARTICLE II. 

SHARES SUBJECT TO PLAN 

Section 2.1 Shares Subject to Plan. The shares of stock subject to Options shall be shares of Common Stock.
Subject to Section 7.1, the aggregate number of such shares which may be issued upon exercise of Options shall not exceed 42,493.260 shares of Common Stock. 

Section 2.2 Unexercised Options. If any Option (or portion thereof) expires or is canceled without having
been fully exercised, the number of shares of Common Stock subject to such Option (or portion thereof), but as to which such Option was not exercised prior to its expiration or cancellation, may again be optioned hereunder, subject to the
limitations of Section 2.1. 
 ARTICLE III. 

GRANTING OF OPTIONS 

Section 3.1 Eligibility. Subject to Section 3.2, any (a) Employee of the Company or one of its
Subsidiaries; (b) Consultant; or (c) Independent Director shall be eligible to be granted Options. 

Section 3.2 Qualification of Incentive Stock Options. Notwithstanding Section 3.1, no Incentive Stock
Option shall be granted to any person who is not an Employee of the Company or one of its Subsidiaries. 

Section 3.3 Granting of Options to Employees and Consultants 

(a) The Committee shall from time to time: 

(i) Select from among the Employees and Consultants of the Company and any of its Subsidiaries (including those to whom Options have been
previously granted under the Plan) such of them as in its opinion should be granted Options; 
 (ii) Determine the number of shares of
Common Stock to be subject to such Options granted to such Employees and Consultants and, subject to Section 3.2, determine whether such Options are to be Incentive Stock Options or Non-Qualified Stock
Options; and 

  
 5 

 (iii) Determine the terms and conditions of such Options, consistent with the Plan. 

(b) Upon the selection of an Employee or Consultant of the Company or any of its Subsidiaries to be granted an Option pursuant to
Section 3.3(a), the Committee shall instruct the corporate secretary or another authorized Officer of the Company to issue such Option and may impose such conditions on the grant of such Option as it deems appropriate. Without limiting the
generality of the preceding sentence, the Committee may require as a condition to the grant of an Option to such Employee or Consultant that such Employee or Consultant surrender for cancellation some or all of the unexercised Options which have
been previously granted to him or her. An Option the grant of which is conditioned upon such surrender may have an Option price lower (or higher) than the Option price of the surrendered Option, may cover the same (or a lesser or greater) number of
shares as the surrendered Option, may contain such other terms as the Committee deems appropriate and shall be exercisable in accordance with its terms, without regard to the number of shares, price, period of exercisability or any other term or
condition of the surrendered Option. 
 Section 3.4 Granting of Options to Independent Directors 

(a) The Board may from time to time: 

(i) Select from among the Independent Directors (including those to whom Options have previously been granted under the Plan) such of them as
in its opinion should be granted Options; 
 (ii) Determine the number of shares of Common Stock to be subject to such Options granted to
such selected Independent Directors; and 
 (iii) Determine the terms and conditions of such Options, consistent with the Plan;
provided, however, that all Options granted to Independent Directors shall be Non-Qualified Stock Options. 

(b) Upon the selection of an Independent Director to be granted an Option pursuant to Section 3.4(a), the Board shall instruct the
corporate secretary or another authorized Officer of the Company to issue such Option and may impose such conditions on the grant of such Option as it deems appropriate. Without limiting the generality of the preceding sentence, the Board may
require as a condition to the grant of an Option to an Independent Director that the Independent Director surrender for cancellation some or all of the unexercised Options which have been previously granted to him or her. An Option the grant of
which is conditioned upon such surrender may have an Option price lower (or higher) than the Option price of the surrendered Option, may cover the same (or a lesser or greater) number of shares as the surrendered Option, may contain such other terms
as the Board deems appropriate, and shall be exercisable in accordance with its terms, without regard to the number of shares, price, period of exercisability or any other term or condition of the surrendered Option. 

  
 6 

 ARTICLE IV. 

TERMS OF OPTIONS 

Section 4.1 Stock Option Agreement. Each Option shall be evidenced by a written stock option agreement
(“Stock Option Agreement”), which shall be executed by the Optionee and an authorized Officer of the Company and which shall contain such terms and conditions as the Committee (or the Board in the case of Options granted to
Independent Directors) shall determine, consistent with the Plan. Stock Option Agreements evidencing Incentive Stock Options shall contain such terms and conditions as may be necessary to qualify such Options as “incentive stock options”
within the meaning of Section 422 of the Code. 
 Section 4.2 Exercisability of Options 

(a) Each Option shall become exercisable according to the terms of the applicable Stock Option Agreement; provided, however, that by a
resolution adopted after an Option is granted the Committee (or the Board in the case of Options granted to Independent Directors) may, on such terms and conditions as it may determine to be appropriate, accelerate the time at which such Option or
any portion thereof may be exercised. 
 (b) Except as otherwise provided in the applicable Stock Option Agreement, no portion of an Option
which is unexercisable at Termination of Employment, Termination of Consultancy or Termination of Directorship, as applicable, shall thereafter become exercisable. 

(c) To the extent that the aggregate Fair Market Value of stock with respect to which “incentive stock options” (within the meaning
of Section 422 of the Code, but without regard to Section 422(d) of the Code) are exercisable for the first time by an Optionee during any calendar year (under the Plan and all other incentive stock option plans of the Company or any
Subsidiary thereof) exceeds $100,000, such options shall be treated and taxable as Non-Qualified Stock Options. The rule set forth in the preceding sentence shall be applied by taking options into account in
the order in which they were granted, and the stock issued upon exercise of options shall designate whether such stock was acquired upon exercise of an Incentive Stock Option. For purposes of these rules, the Fair Market Value of stock shall be
determined as of the date of grant of the Option granted with respect to such stock. 
 Section 4.3 Option
Price. The price of the shares subject to each Option shall be set by the Committee (or the Board in the case of Options granted to Independent Directors); provided, however, that in the case of an Incentive Stock Option, the price per
share shall be not less than 100% of the Fair Market Value of such shares on the date such Option is granted; and provided, further, that in the case of an individual then owning (within the meaning of Section 424(d) of the Code) more
than 10% of the total combined voting power of all classes of stock of the Company, the price per share shall not be less than 110% of the Fair Market Value of such shares on the date such Incentive Stock Option is granted. 

  
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 Section 4.4 Expiration of Options. No Option may be
exercised to any extent by anyone after the first to occur of the following events (or such earlier date as may be set forth in any applicable Stock Option Agreement): 

(a) With respect to a Non-Qualified Stock Option, the expiration of ten years from the date the Non-Qualified Stock Option was granted; or 
 (b) With respect to an Incentive Stock Option in the case of
an Optionee owning (within the meaning of Section 424(d) of the Code), at the time the Incentive Stock Option was granted, 10% or less of the total combined voting power of all classes of stock of the Company or any Subsidiary, the expiration
of ten years from the date the Incentive Stock Option was granted; or 
 (c) With respect to an Incentive Stock Option in the case of an
Optionee owning (within the meaning of Section 424(d) of the Code), at the time the Incentive Stock Option was granted, more than 10% of the total combined voting power of all classes of stock of the Company or any Subsidiary, the expiration of
five years from the date the Incentive Stock Option was granted. 
 Section 4.5
At-Will Employment. Nothing in the Plan or in any Stock Option Agreement hereunder shall confer upon any Optionee any right to continue in the employ of, or as a Consultant to, the Company or any
Subsidiary, or shall interfere with or restrict in any way the rights of the Company and any Subsidiary, which are hereby expressly reserved, to discharge any Optionee at any time for any reason whatsoever, with or without cause, except to the
extent expressly provided otherwise in a written agreement between the Optionee and the Company or any Subsidiary. 
 ARTICLE V. 

EXERCISE OF OPTIONS 

Section 5.1 Person Eligible to Exercise. During the lifetime of the Optionee, only he or she may exercise an
Option (or any portion thereof); provided, however, that the Optionee’s Eligible Representative may exercise such Optionee’s Option during the period of his or her disability, notwithstanding that an Option so exercised may not
qualify as an Incentive Stock Option. After the death of the Optionee, any exercisable portion of an Option may, prior to the time when such portion becomes unexercisable under the Plan or the applicable Stock Option Agreement, be exercised by his
or her Eligible Representative. 
 Section 5.2 Partial Exercise. At any time and from time to time prior to
the time when the Option becomes unexercisable under the Plan or the applicable Stock Option Agreement, the exercisable portion of an Option may be exercised in whole or in part, and the Committee (or the Board in the case of Options granted to
Independent Directors) may, by the terms of the Stock Option Agreement, require any partial exercise to exceed a specified minimum number of shares. 

  
 8 

 Section 5.3 Manner of Exercise. An exercisable Option, or
any exercisable portion thereof, may be exercised solely by delivery to the corporate secretary of all of the following prior to the time when such Option or such portion becomes unexercisable under the Plan or the applicable Stock Option Agreement:

 (a) Notice in writing signed by the Optionee or his or her Eligible Representative stating that such Option or portion is exercised, and
specifically stating the number of shares with respect to which the Option is being exercised; 
 (b) A copy of the Stockholders Agreement
signed by the Optionee or Eligible Representative, as applicable; 
 (c) Full payment for the shares with respect to which such Option or
portion is thereby exercised: 
 (i) In cash, by certified or bank cashier check, or by wire transfer; or 

(ii) With the consent of the Committee (or the Board in the case of Options granted to Independent Directors), (A) shares of Common Stock
which have been owned by the Optionee for at least six months (or such other time period as may be determined by the Committee (or the Board in the case of Options granted to Independent Directors)), duly endorsed for transfer to the Company with a
Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof; (B) except with respect to Incentive Stock Options, shares of Common Stock issuable to the Optionee upon exercise of the
Option, with a Fair Market Value on the date of Option exercise equal to the aggregate Option price of the shares with respect to which such Option or portion is thereby exercised; (C) following an Initial Public Offering and pursuant to any
policies and procedures adopted by the Committee (or the Board in the case of Options granted to Independent Directors), delivery of a notice that the Optionee has placed a market sell order with a broker with respect to shares of Common Stock then
issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price; or (D) any combination of the consideration
listed in this Section 5.3(c) or any other property of any kind which is deemed to constitute good and valuable consideration by the Committee (or the Board in the case of Options granted to Independent Directors); 

(d) The payment to the Company (in cash, by certified or bank cashier check, by wire transfer or by any other means of payment approved by the
Committee) of all amounts necessary to satisfy any and all federal, state and local tax withholding requirements arising in connection with the exercise of the Option; provided that the Committee may, in its sole discretion, allow the
Optionee to satisfy the withholding tax obligations arising in connection with the exercise of any Option under the Plan by electing to have the Company withhold from the Common Stock to be issued that number of shares of Common Stock having a Fair
Market Value equal to the amount required to be withheld (based on minimum applicable statutory withholding rates), determined on the date that the amount of tax to be withheld is determined; 

(e) Such representations and documents as the Committee (or the Board in the case of Options granted to Independent Directors) deems necessary
or advisable to effect compliance with all applicable provisions of the Securities Act, Exchange Act and any other federal or state securities laws or regulations. The Committee (or the Board in the case of Options granted to Independent Directors)
may, in its sole discretion, also take whatever additional actions it deems appropriate to effect such compliance including, without limitation, placing legends on share certificates and issuing stop-transfer orders to transfer agents and
registrars; and 

  
 9 

 (f) In the event that the Option or portion thereof shall be exercised pursuant to
Section 5.1 by any person or persons other than the Optionee, appropriate proof of the right of such person or persons to exercise the Option or portion thereof. 

Section 5.4 Conditions to Issuance of Stock Certificates. The shares of Common Stock issuable and deliverable
upon the exercise of an Option, or any portion thereof, may be either previously authorized but unissued shares or issued shares which have then been reacquired by the Company. A certificate of shares will be delivered to the Optionee at the
Company’s principal place of business within thirty days of receipt by the Company of the written notice and payment, unless an earlier date is agreed upon. Notwithstanding the above, the Company shall not be required to issue or deliver any
certificate or certificates for shares of Common Stock purchased upon the exercise of any Option or portion thereof prior to fulfillment of all of the following conditions: 

(a) The admission of such shares to listing on any and all stock exchanges on which such class of stock is then listed; 

(b) The execution by the Optionee and delivery to the Company of the Stockholders Agreement; 

(c) The completion of any registration or other qualification of such shares under any state or federal law or under the rulings or
regulations of the Securities and Exchange Commission or any other governmental regulatory body, which the Committee (or the Board in the case of Options granted to Independent Directors) shall, in its sole discretion, deem necessary or advisable;

 (d) The obtaining of any approval or other clearance from any state or federal governmental agency which the Committee (or the Board in
the case of Options granted to Independent Directors) shall, in its sole discretion, determine to be necessary or advisable; and 
 (e) The
payment to the Company of all amounts which it is required to withhold under federal, state or local law in connection with the exercise of the Option. 

Section 5.5 Rights as Stockholders. The holder of an Option shall not be, nor have any of the rights or
privileges of, a stockholder of the Company in respect of any shares purchasable upon the exercise of any part of an Option unless and until such holder has signed the Stockholders Agreement and certificates representing such shares have been issued
by the Company to such holder. 
 Section 5.6 Transfer Restrictions. Shares acquired upon exercise of an
Option shall be subject to the terms and conditions of the Stockholders Agreement. In addition, the Committee (or the Board in the case of Options granted to Independent Directors), in its sole discretion, may impose further restrictions on the
transferability of the shares purchasable upon the exercise of an Option as it deems appropriate. Any such restriction shall be set forth in the respective Stock Option Agreement and may be referred to on the certificates evidencing such shares. The
Committee may require an Employee to give the Company prompt notice of any disposition of 

  
 10 

 
shares of Common Stock acquired by exercise of an Incentive Stock Option within two years from the date of granting such Option or one year after the transfer of such shares to such Employee. The
Committee may direct that the certificates evidencing shares acquired by exercise of an Incentive Stock Option refer to such requirement. 

ARTICLE VI. 

ADMINISTRATION 

Section 6.1 Committee. Prior to an Initial Public Offering, the Committee shall be the Compensation Committee
of the Board, or the full Board in the event the Board has not appointed a Compensation Committee. Following an Initial Public Offering, if any, the full Board shall administer the Plan unless and until there is appointed a Compensation Committee
(or another committee or a subcommittee of the Board assuming the functions of the Committee under the Plan) that, unless otherwise determined by the Board, shall consist solely of two or more Independent Directors appointed by and holding office at
the pleasure of the Board, each of whom is both a “non-employee director” as defined by Rule 16b-3 and an “outside director” for purposes of
Section 162(m) of the Code), provided that any action taken by the Committee shall be valid and effective, whether or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for
membership set forth in this Section 6.1 or otherwise provided in the charter of the Committee. In its sole discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan
except with respect to matters which under Rule 16b-3 or Section 162(m) of the Code (in each case, to the extent applicable), or any regulations or rules issued thereunder, are required to be determined
in the sole discretion of the Committee. The governance of the Committee shall be subject to the charter of the Committee as approved by the Board. 

Section 6.2 Delegation of Authority. The Committee may, but need not, from time to time delegate some or all
of its authority to grant Options under the Plan to a committee or subcommittee consisting of one or more members of the Committee or of one or more Officers of the Company; provided, however, that the Committee may not delegate its authority
to grant Options to individuals (a) who are subject on the date of the grant to the reporting rules under Section 16(a) of the Exchange Act, (b) whose compensation the Committee determines is, or may become, subject to the deduction
limitations set forth in Section 162(m) of the Code or (c) who are Officers of the Company who are delegated authority by the Committee hereunder. Any delegation hereunder shall be subject to the restrictions and limits that the Committee
specifies at the time of such delegation, and the Committee may at any time rescind the authority so delegated or appoint a new delegatee. At all times, the delegatee appointed under this Section 6.2 shall serve in such capacity at the pleasure
of the Committee. 
 Section 6.3 Duties and Powers of the Committee. It shall be the duty of the Committee
to conduct the general administration of the Plan in accordance with its provisions. The Committee shall have the power to interpret the Plan and the Options and to adopt such rules for the administration, interpretation and application of the Plan
as are consistent therewith and to interpret, amend or revoke any such rules. Notwithstanding the foregoing, the full Board, acting by a majority of its members in office, shall conduct the general administration of the Plan with respect to Options
granted to Independent Directors. Any such interpretations and rules in regard to Incentive Stock Options shall be consistent with the terms and conditions applicable to “incentive stock options” within the meaning of Section 422 of
the Code. All determinations and decisions made by the Committee under any provision of the Plan or of any Option granted thereunder shall be final, conclusive and binding on all persons. 

  
 11 

 Section 6.4 Compensation, Professional Assistance, Good Faith
Actions. The members of the Committee shall receive such compensation, if any, for their services hereunder as may be determined by the Board. All expenses and liabilities incurred by the members of the Committee or the Board in connection with
the administration of the Plan shall be borne by the Company. The Committee or the Board may employ attorneys, consultants, accountants, appraisers, brokers or other persons. The Committee, the Company and its Officers and Directors shall be
entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations made by the Committee and the Board in good faith shall be final and binding upon all Optionees, the Company
and all other interested persons. No member of the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the Options, and all members of the Board shall be fully protected by
the Company in respect to any such action, determination or interpretation. 
 ARTICLE VII. 

OTHER PROVISIONS 

Section 7.1 Changes in Common Stock; Disposition of Assets and Corporate Events 

(a) In the event of any stock split, spin-off, share combination, reclassification, recapitalization,
liquidation, dissolution, reorganization, merger, Change in Control, payment of a dividend or distribution (other than a cash dividend paid as part of a regular dividend program) or other similar transaction or occurrence (including an Equity
Restructuring) which affects the equity securities of the Company or the value thereof, the Committee shall (i) adjust the number and kind of shares subject to the Plan and available for or covered by Options, (ii) adjust the exercise
prices related to outstanding Options, and/or (iii) take such other action (including, without limitation providing for payment of a cash amount to holders of outstanding Options and adjusting performance targets), in each case as it deems
reasonably necessary to address, on an equitable basis, the effect of the applicable corporate event on the Plan and any outstanding Options, without adverse tax consequences under Section 409A of the Code. 

(b) In the event of a Change in Control: (i) if provided in the applicable Grant Agreement or otherwise determined by the Committee in
its sole discretion, any outstanding Options then held by Optionees which are unexercisable or otherwise unvested shall automatically be deemed exercisable or otherwise vested as of immediately prior to such Change in Control and (ii) the
Committee may, to the extent determined by the Committee to be permitted under Section 409A of the Code, but shall not be obligated to: (x) cancel outstanding Options for a payment equal to the excess, if any, of the value of the
consideration to be paid in the Change in Control transaction to holders of the same number of shares of Common Stock subject to such Options (or, if no consideration is paid in any such transaction, the Fair Market Value of the Common Stock subject
to such Stock Options) over the aggregate exercise price of such Options (and, for the avoidance of doubt, any Options having an exercise price equal to or 

  
 12 

 
greater than the consideration to be paid in the Change in Control may be cancelled without payment in respect thereof); (y) provide for the issuance of substitute awards that will preserve in no
less favorable a manner the otherwise applicable terms of any affected Options previously granted hereunder, as determined by the Committee in its sole discretion; or (z) provide that for a period of at least ten business days prior to the
Change in Control, Options shall be exercisable as to all Shares subject thereto (where, for the avoidance of doubt, an Optionee shall have the ability to request that such shares be withheld to satisfy the payment of the exercise price of such
Options and/or to satisfy any tax withholding obligations that the Optionee may incur as a result of such exercise) and that, upon the occurrence of the Change in Control, such Options shall terminate and be of no further force and effect. 

 Section 7.2 Options Not Transferable. No Option or interest or right therein or part thereof shall be
liable for the debts, contracts or engagements of the Optionee or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition
be voluntary or involuntary or by operation of law, by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect;
provided, however, that nothing in this Section 7.2 shall prevent transfers by will or by the applicable laws of descent and distribution. 

Section 7.3 Amendment, Suspension or Termination of the Plan. The Plan may be wholly or partially amended or
otherwise modified, suspended or terminated at any time or from time to time by the Board or the Committee. However, without stockholder approval within 12 months before or after such action, no action of the Board or the Committee may, except as
provided in Section 7.1, increase any limit imposed in Section 2.1 on the maximum number of shares which may be issued on exercise of Options, reduce the minimum Option price requirements of Section 4.3, or extend the limit imposed in
this Section 7.3 on the period during which Options may be granted. Except as provided by Section 7.1, neither the amendment, suspension nor termination of the Plan shall, without the consent of the holder of the Option, alter or impair
any rights or obligations under any Option theretofore granted. No Option may be granted during any period of suspension nor after termination of the Plan, and in no event may any Option be granted under this Plan after the expiration of ten years
from the date the Plan is adopted by the Board. 
 Section 7.4 Effect of Plan Upon Other Option and
Compensation Plans. The adoption of this Plan shall not affect any other compensation or incentive plans in effect for the Company or any Affiliate. Nothing in this Plan shall be construed to limit the right of the Company or any Affiliate
(a) to establish any other forms of incentives or compensation for directors, employees or consultants of the Company or any Affiliate; or (b) to grant or assume options otherwise than under this Plan in connection with any proper
corporate purpose, including, but not by way of limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any corporation, firm or
association. 
 Section 7.5 Approval of Plan by Stockholders. The Company’s stockholders approved this
Plan on the date of the Board’s initial adoption of this Plan. 

  
 13 

 Section 7.6 Titles. Titles are provided herein for
convenience only and are not to serve as a basis for interpretation or construction of the Plan. 
 Section 7.7
Conformity to Securities Laws. The Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission
thereunder to the extent the Company or any Optionee is subject to the provisions thereof. Notwithstanding anything herein to the contrary, the Plan shall be administered, and Options shall be granted and may be exercised, only in such a manner as
to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and Options granted hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 

Section 7.8 Governing Law. To the extent not preempted by federal law, the Plan shall be construed in
accordance with and governed by the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof, or principles of conflicts of law of any other jurisdiction which could cause the application of the laws of
any jurisdiction other than the State of Delaware. 
 Section 7.9 Severability. In the event any portion of
the Plan or any action taken pursuant thereto shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid
provisions had not been included, and the illegal or invalid action shall be null and void. 
 Section 7.10
Section 409A. To the extent applicable, the Plan and Stock Option Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder. 

* * * * * 

  
 14 

 I hereby certify that the foregoing Plan was duly assumed and adopted by the Board of
Directors of Jo-Ann Stores Holdings Inc. as of October 16, 2012. 
 I hereby certify that the
foregoing Plan was assumed and approved by the stockholders of Jo-Ann Stores Holdings Inc. as of October 16, 2012. 

Executed as of October 16, 2012. 
  

	
	/s/ Travis Smith
	Officer Name: Travis Smith 
	Officer Title: Chief Executive Officer and President

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