##### 



Exhibit 10.1

THIRD AMENDMENT
TO THE
MICHAELS STORES, INC. EMPLOYEES 401(k) PLAN
(As Amended And Restated Effective August 1, 1999)

Michaels Stores, Inc., a Delaware corporation, pursuant to authority of
the Michaels Stores, Inc. Administration Committee, adopts thefollowing
amendment to the Michaels Stores, Inc. Employees 401(k) Plan (the
Plan):

| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | The first sentence of Section 9.5(b) of the Plan (Mandated
Commencement of Benefits) is amended in its entirety to read as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | Notwithstanding the foregoing, distributions under this Section
shall be made in accordance with the provisions of Code Section
401(a)(9) and the final and temporary Treasury Regulations issued
thereunder on April 17, 2002, including Treasury Regulation
Section 1.401(a)(9)-(2), which provisions are hereby incorporated
by reference, provided that such provisions shall override the
other distribution provisions of the Plan only to the extent that
such other Plan provisions provide for distribution that is less
rapid than is required under such provisions of the Code and
Regulations.
| | 2. | The foregoing amendment will be effective for distributions made for
calendar years beginning on or after January 1, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

Executed this 3rd day of December, 2002.

MICHAELS
STORES, INC.By
    
    /s/ Sue ElliottSue Elliott, Senior
Vice President Human Resources