Exhibit 10.1

SPLIT DOLLAR INSURANCE AGREEMENT

THIS AGREEMENT made this 15 ^th of October 2008 , by and between JO-ANN STORES, INC., an Ohio corporation (the “Company”) and Kenneth Haverkost (the “Employee”),

W I T N E S S E T H:

WHEREAS, the Employee has performed his duties in a capable and efficient manner and is a valued employee of the Company and has indicated his intention to continue such services, and the Company desires that he do so; and

WHEREAS, in the continuation of such relationship, the parties desire to establish an arrangement in order to provide insurance protection for the benefit of the Employee;

NOW, THEREFORE, in consideration of the services rendered and to be rendered by the Employee and of the mutual covenants contained herein, the parties hereto agree as follows:

1.  Purchases of Insurance . The Company shall maintain life insurance policies acquired by the Company on the life of the Employee (the “Policies”) from insurance companies selected by the Company (the “Insurance Companies”), shall pay the premiums on the policies when due, and shall be designated as sole owner of the policies subject to the conditions hereafter set forth.

2.  Allocation of Premiums Between Company and Employee . The Company will pay the entirety of the Premiums due on the Policies and shall annually furnish the Employee a statement of the amount of income reportable by the Employee for Federal and State income tax purposes, if any, as a result of its payment of such premiums.

3.  Payment of Proceeds . Upon the death of the Employee while this Agreement remains in effect, the proceeds of the Policies shall be paid as follows:

(a) To the Employee