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Exhibit 10.1

SECOND AMENDMENT
TO
AGREEMENT

        THIS Second Amendment ("Amendment") to the Agreement ("Original
Agreement") between Michaels Stores, Inc. ("Michaels") and Bryan M. DeCordova
("Employee") dated effective as of June 7, 2002, as amended by the Amendment
thereto ("First Amendment") among Michaels, Michaels Management Services, LP
(the "Company") and Employee effective as of August 2, 2002 ("Agreement"), is
entered into by and among Michaels, the Company and Employee effective as of
September 24, 2002.

        WHEREAS, the Original Agreement provided for Employee to continue to
perform certain services for Michaels and its subsidiaries until August 31,
2002; and

        WHEREAS, the First Amendment provided for Employee to continue to
perform certain services for Michaels and its subsidiaries until September 30,
2002; and

        WHEREAS, Employee is employed by the Company (which is a subsidiary of
Michaels); and

        WHEREAS, Michaels, the Company and Employee wish to extend the time for
which Employee will perform services for Michaels and its subsidiaries until
October 31, 2002;

        NOW, THEREFORE, in consideration of the covenants contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties do hereby agree as follows:

        Section 1.    Amended Resignation Date.    Section 1 of the Agreement is
hereby amended to read in its entirety as follows:

        Section 1.    Resignation.    Employee hereby irrevocably and
unconditionally resigns from any position he holds with Michaels or any
subsidiary or affiliate of Michaels effective on the earlier to occur of
(a) October 31, 2002; or (b) the date, if any, upon which Employee is terminated
"for Cause," as defined in Section 4 of this Agreement (the earlier of the
possible dates actually taking place being referred to herein as the
"Termination Date").

        Section 2.    Certain References.    All references in the Agreement to:
(a) "this Agreement" shall mean the Agreement as amended by this Amendment;
(b) "the parties" shall mean Michaels, the Company and Employee; (c) "either
party" shall mean "any of the parties"; (d) "both of the parties" shall mean
"all of the parties"; and (e) "other party" shall mean "other parties".

        Section 3.    Effect of Amendment.    Except as amended by this
Amendment, the Agreement will be unamended and remain in full force and effect.

        Section 4.    Headings.    The headings, captions and arrangements used
in this Amendment are for convenience only and shall not be deemed to limit,
amplify or modify the terms hereof, nor affect the meaning thereof.

        Section 5.    GOVERNING LAW.    THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS (BUT NOT THE RULES GOVERNING
CONFLICTS OF LAWS) OF THE STATE OF TEXAS. THE PARTIES AGREE THAT THIS AMENDMENT
SHALL BE PERFORMABLE IN DALLAS COUNTY, TEXAS.

        Section 6.    Multiple Counterparts.    This Amendment has been executed
in a number of counterparts, all of which constitute, collectively, one
agreement; but in making proof of this Amendment, it shall not be necessary to
produce or account for more than one such counterpart.

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        EXECUTED effective as of September 24, 2002.

    MICHAELS STORES, INC.
 
 
By:
/s/ R. Michael Rouleau

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Name: R. Michael Rouleau
Title: President and Chief Executive Officer
 
 
MICHAELS MANAGEMENT SERVICES, LP
 
 
By:
MICHAELS GP, INC., its General Partner

    By: /s/ R. Michael Rouleau

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Name: R. Michael Rouleau
Title: President and Chief Executive Officer

    /s/ Bryan M. DeCordova

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BRYAN M. DECORDOVA

2

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ACKNOWLEDGMENTS

STATE OF TEXAS                §
                                                  §
COUNTY OF DALLAS         §

        BEFORE ME, the undersigned authority, on this day personally appeared
R. Michael Rouleau, President and Chief Executive Officer of MICHAELS STORES,
 INC., a Delaware corporation, known to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that he executed
the same for the purposes and consideration therein expressed, in the capacity
therein stated and as the act and deed of said corporation.

        GIVEN UNDER MY HAND AND SEAL on this 24th day of September, 2002.

 
/s/  VERONICA LARSEN      

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Notary Public in and for the
State of Texas
 
Veronica Larsen October 7, 2005

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Notary's Printed Name and
Commission Expiration

STATE OF TEXAS                §
                                                  §
COUNTY OF DALLAS         §

        BEFORE ME, the undersigned authority, on this day personally appeared
R. Michael Rouleau, President and Chief Executive Officer of MICHAELS GP,  INC.,
a Delaware corporation, general partner of MICHAELS MANAGEMENT SERVICES, LP, a
Texas limited partnership, known to me to be the person whose name is subscribed
to the foregoing instrument and acknowledged to me that he executed the same for
the purposes and consideration therein expressed, in the capacity therein stated
and as the act and deed of said limited partnership.

        GIVEN UNDER MY HAND AND SEAL on this 24th day of September, 2002.

 
/s/  VERONICA LARSEN      

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Notary Public in and for the
State of Texas
 
Veronica Larsen October 7, 2005

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Notary's Printed Name and
Commission Expiration

3

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STATE OF TEXAS                §
                                                  §
COUNTY OF DALLAS         §

        BEFORE ME, the undersigned authority, on this day personally appeared
BRYAN M. DECORDOVA, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed.

        GIVEN UNDER MY HAND AND SEAL on this 25th day of September, 2002.

 
/s/  VERONICA LARSEN      

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Notary Public in and for the
State of Texas
 
Veronica Larsen October 7, 2005

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Notary's Printed Name and
Commission Expiration

4

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Exhibit 10.1

SECOND AMENDMENT TO AGREEMENT
ACKNOWLEDGMENTS

STATE OF TEXAS § § COUNTY OF DALLAS §

STATE OF TEXAS § § COUNTY OF DALLAS §

STATE OF TEXAS § § COUNTY OF DALLAS §