Document:

Exhibit 10.5

 

	Name:	Mark Cosby
	Number of Restricted Stock Units:	75,000
	Date of Grant:	October 21, 2019

 

The
Michaels Companies, Inc.

2014 Omnibus Long-Term Incentive Plan

 

Amended & Restated Restricted Stock Unit Agreement

 

This amended
and restated agreement (this “Agreement”) evidences the grant of restricted stock units (the “Restricted
Stock Units”) by The Michaels Companies, Inc. (the “Company”) to the individual named above (the “Grantee”),
pursuant to and subject to the terms of The Michaels Companies, Inc. 2014 Omnibus Long-Term Incentive Plan (as amended from time
to time, the “Plan”), which is incorporated herein by reference. This agreement was originally entered into
as of the date of grant set forth above (the “Date of Grant”) and is amended and restated as of December 26, 2019.

 

1.           
Grant of Restricted Stock Units. The Company granted to the Grantee on the Date of Grant an award (the “Award”)
consisting of the right to receive, on the terms provided herein and in the Plan, one share of Stock with respect to each Restricted
Stock Unit forming part of the Award, in each case, subject to adjustment pursuant to Section 7(b) of the Plan in respect of transactions
occurring after the Date of Grant.

 

2.           
Meaning of Certain Terms. Each initially capitalized term used but not separately defined herein has the meaning
assigned to such term in the Plan. The following terms have the following meanings:

 

		(a)	“Change of Control” means the occurrence of any of the following: (i) any consolidation or merger of the
Company with or into any other corporation or other Person, or any other corporate reorganization or transaction (including the
acquisition of capital stock of the Company), whether or not the Company is a party thereto, in which the stockholders of the Company
immediately prior to such consolidation, merger, reorganization or transaction, own capital stock either (A) representing directly,
or indirectly through one or more entities, less than fifty percent (50%) of the economic interests in or voting power of the Company
or other surviving entity immediately after such consolidation, merger, reorganization or transaction or (B) that does not directly,
or indirectly through one or more entities, have the power to elect a majority of the entire board of directors of the Company
or other surviving entity immediately after such consolidation, merger, reorganization or transaction; (ii) any stock sale or other
transaction or series of related transactions, whether or not the Company is a party thereto, after giving effect to which in excess
of fifty percent (50%) of the Company’s voting power is owned directly, or indirectly through one or more entities, by any
Person and its “affiliates” or “associates” (as such terms are defined in the rules adopted by the Securities
and Exchange Commission under the Securities Exchange Act of 1934, as in effect from time to time), other than the Investors and
their respective affiliated funds, excluding, in any case referred to in clause (i) or (ii) an initial public offering or any bona
fide primary or secondary public offering following the occurrence of an initial public offering; or (iii) a sale, lease or other
disposition of all or substantially all of the assets of the Company.

 

     

     

    

 

		(b)	“Investors” means Bain Capital Partners, LLC and The Blackstone Group L.P.

 

		(c)	“Person” means any individual, partnership, corporation, company, association, trust, joint venture, limited
liability company, unincorporated organization, entity or division, or any government, governmental department or agency or political
subdivision thereof.

 

3.           
Vesting. The term “vest” as used herein with respect to any Restricted Stock Unit means the lapsing of
the restrictions described herein with respect to such Restricted Stock Unit. Unless earlier terminated, forfeited, relinquished
or expired, the Award shall vest as follows, provided in each case (subject to Section 3(b) below) that the Grantee has remained
in continuous Employment as Chief Executive Officer of Michaels Stores, Inc. or as a member of the Company’s board of directors
from the Date of Grant through the applicable vesting date:

 

		(a)	Fifty percent (50%) of the Award shall vest on each anniversary of the Date of Grant.

 

		(b)	Upon both the Grantee’s termination of Employment as Chief Executive Officer of Michaels Stores, Inc. by the Company
or Michaels Stores, Inc. without Cause (except where Cause exists) and the Grantee’s cessation of service as a member of
the Company’s board of directors, the Award will vest as to that portion that would otherwise vest on the next anniversary
of the Date of Grant, pro rated based on the number of days since the last annual vesting date (or the Date of Grant if such termination
or cessation occurs prior to the first anniversary of the Date of Grant).

 

		(c)	In the event (i) the Restricted Stock Units (or any portion thereof) are outstanding as of immediately prior to a Change of
Control and the Administrator provides for the assumption or continuation of, or the substitution of a substantially equivalent
award for, the Restricted Stock Units (or any portion thereof) in accordance with Section 7(a)(i) of the Plan (the “Rollover
Award”) and (ii) the Grantee’s Employment as Chief Executive Officer of Michaels Stores, Inc. by the Company or
Michaels Stores, Inc. is terminated by the Company or Michaels Stores, Inc. (or one of their successors) without Cause within the
twelve (12) months following the Change of Control, the Rollover Award to the extent still outstanding will vest in full on the
date of the termination of the Grantee’s Employment as Chief Executive Officer of Michaels Stores, Inc. For the avoidance
of doubt, if the Administrator does not provide for such assumption, continuation, or substitution in connection with a Change
of Control, then the treatment of the Restricted Stock Units in such Change of Control will be as provided for by the Administrator
in its sole discretion pursuant to Section 7(a)(2) through Section 7(a)(5) of the Plan.

 

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4.           
Forfeiture Risk. If both the Grantee’s Employment as Chief Executive Officer of Michaels Stores, Inc. and his
service as a member of the Company’s board of directors cease for any reason, including death, any then outstanding and unvested
Restricted Stock Units acquired by the Grantee hereunder shall be automatically and immediately forfeited, subject to Sections
3(b) and 3(c) above.

 

5.           
Delivery of Stock. The Company shall deliver to the Grantee as soon as practicable upon the vesting of the Restricted
Stock Units (or any portion thereof), but in all events no later than thirty (30) days following the date on which such Restricted
Stock Units vest, one share of Stock with respect to each such vested Restricted Stock Unit, subject to the terms of the Plan and
this Agreement.

 

6.           
Dividends, etc. The Grantee shall have the rights of a shareholder with respect to a share of Stock subject
to the Award only at such time, if any, as such share is actually delivered under the Award. Without limiting the generality of
the foregoing and for the avoidance of doubt, the Grantee shall not be entitled to vote any share of Stock subject to the Award
or to receive or be credited with any dividend or other distribution declared and payable on any such share unless such share has
been actually delivered hereunder and is held by the Grantee on the record date for such vote or dividend (or other distribution),
as the case may be.

 

7.            Nontransferability. Neither the Award nor the Restricted Stock Units may be transferred.

 

8.           
Certain Tax Matters.

 

		(a)	The Grantee expressly acknowledges and agrees that the Grantee’s rights hereunder, including the right to be issued shares
of Stock upon the vesting of the Restricted Stock Units (or any portion thereof), are subject to the Grantee’s promptly paying,
or in respect of any later requirement of withholding being liable promptly to pay at such time as such withholdings are due, to
the Company in cash (or by such other means as may be acceptable to the Administrator in its discretion) all taxes required to
be withheld, if any.  No shares of Stock will be required to be transferred pursuant to the vesting of the Restricted Stock
Units (or any portion thereof) unless and until the Grantee or the person then holding the Award has remitted to the Company an
amount in cash sufficient to satisfy any federal, state, or local requirements with respect to tax withholdings then due and has
committed (and by accepting the Award the Grantee shall be deemed to have committed) to pay in cash all tax withholdings required
at any later time in respect of the transfer of such shares, or has made other arrangements satisfactory to the Administrator with
respect to such taxes.  The Grantee also authorizes the Company and its subsidiaries to withhold such amounts from any amounts
otherwise owed to the Grantee, but nothing in this sentence shall be construed as relieving the Grantee of any liability for satisfying
his or her obligations under the preceding provisions of this Section.

 

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		(b)	The Grantee expressly acknowledges that because the Award consists of an unfunded and unsecured promise by the Company to deliver
Stock in the future, subject to the terms hereof, it is not possible to make a so-called “83(b) election” with respect
to the Award.

 

9.            Forfeiture/Recovery of Compensation. By accepting the Award the Grantee expressly acknowledges and agrees that his
or her rights, and those of any permitted transferee, under the Award or to any Stock received following the vesting of the Award
or proceeds from the disposition thereof, are subject to Section 6(a)(5) of the Plan (including any successor provision) and Section
10 of this Agreement. Nothing in the preceding sentence shall be construed as limiting the general application of Section 13 of
this Agreement.

 

10.          Non-Competition/Non-Solicitation. The Grantee hereby acknowledges that the Company and its Affiliates have invested
and continue to invest considerable resources in developing Company Information (as defined below) and trade secrets, and in establishing
and maintaining relationships with customers, employees, and vendors. The Grantee hereby further acknowledges that the Award is
being furnished to the Grantee as good and valuable consideration, among other consideration, in exchange for the below covenants,
which are necessary to protect the Company Information, trade secrets, and goodwill of the Company and its Affiliates:

 

		(a)	Non-Competition. The Grantee covenants and agrees that during the Grantee’s Employment and for a period of twelve
(12) months (and such period shall be tolled on a day-to-day basis for each day during which the Grantee participates in any activity
in violation of the restrictions set forth in this Section 10(a)) following the termination of the Grantee’s Employment,
whether such termination occurs at the insistence of the Company or its Affiliates or the Grantee (for whatever reason), the Grantee
will not, directly or indirectly, alone or in association with others, anywhere in the Territory (as defined below), own, manage,
operate, control or participate in the ownership, management, operation or control of, or be connected as an officer, employee,
investor, principal, joint venturer, shareholder, partner, director, consultant, agent or otherwise with, or have any financial
interest (through stock or other equity ownership, investment of capital, the lending of money or otherwise) in, any business,
venture or activity that directly or indirectly competes, or is in planning, or has undertaken any preparation, to compete, with
the Business of the Company or any of its Immediate Affiliates (any Person who engages in any such business venture or activity,
a “Competitor”), except that nothing contained in this Section 10(a) shall prevent the Grantee’s wholly
passive ownership of two percent (2%) or less of the equity securities of any Competitor that is a publicly-traded company. For
purposes of this Section 10(a), the “Business of the Company or any of its Immediate Affiliates” is that of
arts and crafts, or framing specialty retailer or wholesaler providing materials, ideas and education for creative activities,
or framing, as well as any other business that the Company or any of its Immediate Affiliates conducts or is actively planning
to conduct at any time during the Grantee’s Employment, or with respect to the Grantee’s obligations following the
termination of the Grantee’s Employment the twelve (12) months immediately preceding the termination of the Grantee’s
Employment; provided, that the term “Competitor” shall not include any business, venture or activity whose gross receipts
derived from the retail or wholesale sale of arts and crafts, or framing products and services (aggregated with the gross receipts
derived from the retail and wholesale sale of such products or any related business, venture or activity) are less than ten percent
(10%) of the aggregate gross receipts of such businesses, ventures or activities. For purposes of this Section 10(a), the “Territory”
is comprised of those states within the United States, those provinces of Canada, and any other geographic area in which the Company
or any of its Immediate Affiliates was doing business or actively planning to do business at any time during the Grantee’s
Employment, or with respect to the Grantee’s obligations following his or her termination of Employment the twelve (12) months
immediately preceding the termination of the Grantee’s Employment. For purposes of this Section, “Immediate Affiliates”
means those Affiliates which are one of the following: (i) a direct or indirect subsidiary of the Company, (ii) a parent to the
Company or (iii) a direct or indirect subsidiary of such a parent.

 

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		(b)	Non-Solicitation. The Grantee covenants and agrees that during the Grantee’s Employment and for a period of twelve
(12) months (and such period shall be tolled on a day-to-day basis for each day during which the Grantee participates in any activity
in violation of the restrictions set forth in this Section 10(b)) after the termination of the Grantee’s Employment, whether
such termination occurs at the insistence of the Company or the Grantee (for whatever reason), the Grantee shall not, and shall
not assist any other Person to, (i) hire or solicit for hire any employee of the Company or any of its Immediate Affiliates or
seek to persuade any employee of the Company or any of its Immediate Affiliates to discontinue employment or (ii) solicit or encourage
any independent contractor providing services to the Company or any of its Immediate Affiliates to terminate or diminish its relationship
with them; provided, however, that after termination of the Grantee’s Employment, these restrictions shall apply only with
respect to employees of, and independent contractors providing services to, the Company or any of its Immediate Affiliates who
were such on the date that the Grantee’s Employment terminated or at any time during the nine (9) months immediately preceding
such termination date.

 

		(c)	Goodwill and Company Information. The Grantee acknowledges the importance to the Company and its Affiliates of protecting
their legitimate business interests, including without limitation the valuable Company Information and goodwill that they have
developed or acquired at considerable expense. The Grantee acknowledges and agrees that in the course of the Grantee’s Employment,
the Grantee has acquired: (i) confidential information including without limitation information received by the Company (or any
of its Affiliates) from third parties, under confidential conditions, (ii) other technical, product, business, financial or development
information from the Company (or any of its Affiliates), the use or disclosure of which reasonably might be construed to be contrary
to the interest of the Company (or any of its Affiliates), or (iii) any other proprietary information or data, including but not
limited to identities, responsibilities, contact information, performance and/or compensation levels of employees, costs and methods
of doing business, systems, processes, computer hardware and software, compilations of information, third-party IT service providers
and other Company or its Affiliates’ vendors, records, sales reports, sales procedures, financial information, customer requirements
and confidential negotiated terms, pricing techniques, customer lists, price lists, information about past, present, pending and/or
planned Company or its Affiliates’ transactions not publically disclosed and other confidential information which the Grantee
may have acquired during the Grantee’s Employment (hereafter collectively referred to as “Company Information”)
which are owned by the Company or its Affiliates and regularly used in the operation of its business, and as to which precautions
are taken to prevent dissemination to persons other than certain directors, officers and employees and if disclosed, would assist
in competition against the Company or any of its Affiliates. The Grantee understands and agrees that such Company Information was
and will be disclosed to the Grantee in confidence and for use only in performing work for the Company or its Affiliates. The Grantee
understands and agrees that the Grantee: (x) will keep such Company Information confidential at all times, (y) will not disclose
or communicate Company Information to any third party, and (z) will not make use of Company Information on the Grantee’s
own behalf, or on behalf of any third party. In view of the nature of the Grantee’s Employment and the nature of Company
Information the Grantee receives during the course of the Grantee’s Employment, the Grantee agrees that any unauthorized
disclosure to third parties of Company Information would cause irreparable damage to the confidential or trade secret status of
Company Information. The Grantee further acknowledges and agrees that the restrictions on his or her activities set forth above
are necessary to protect the goodwill, Company Information and other legitimate interests of the Company and its Affiliates and
that the Grantee’s acceptance of these restrictions is a condition of receipt of the Award, to which the Grantee would not
otherwise be entitled, and the Award is good and sufficient consideration to support the Grantee’s agreement to and compliance
with these covenants.

 

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		(d)	Remedies. In the event of a breach or threatened breach by the Grantee of any of the covenants contained in Section
10(a), 10(b) or 10(c):

 

(i)           
the Grantee hereby consents and agrees that (x) any unvested Restricted Stock Units and (y) all shares of Stock held by
the Grantee following the vesting of the Restricted Stock Units shall be forfeited effective as of the date of such breach or threatened
breach, unless sooner terminated by operation of another term or condition of this Agreement or the Plan;

 

(ii)          
the Grantee hereby consents and agrees that if the Grantee has sold any shares of Stock upon or following the vesting of
the Restricted Stock Units within twelve (12) months prior to the date of such breach or threatened breach, the Grantee shall pay
to the Company the gross proceeds realized by the Grantee in connection with such sale; and

 

(iii)         
the Grantee hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies,
a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent
jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and
without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in
lieu of, legal remedies, monetary damages or other available forms of relief.

 

		(e)	General. The Grantee agrees that the above restrictive covenants are completely severable and independent agreements
supported by good and valuable consideration and, as such, shall survive the termination of this Agreement for whatever reason.
The Company and the Grantee agree that any invalidity or unenforceability of any one or more of such restrictions on competition
shall not render invalid or unenforceable any remaining restrictive covenants. Should a court of competent jurisdiction determine
that the scope of any provision of this Section 10 is too broad to be enforced as written, the Company and the Grantee intend that
the court reform the provision to such narrower scope as it determines to be reasonable and enforceable.

 

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11.         
Form S-8 Prospectus. The Grantee acknowledges having received and reviewed a copy of the prospectus required by Part
I of Form S-8 relating to shares of Stock that may be issued under the Plan.

 

12.         
Governing Law. Notwithstanding anything to the contrary in the Plan, Section 10 of this Agreement shall be governed
by and construed in accordance with the laws of the State of Texas, without giving effect to any choice or conflict of law provision
or rule that would cause the application of the laws of any other jurisdiction, except where preempted by federal law. Both parties
hereby consent and submit to the jurisdiction of the state and federal courts in Dallas County, Texas in all questions and controversies
arising out of this Agreement.

 

13.         
Acknowledgments. By accepting the Award, the Grantee agrees to be bound by, and agrees that the Award is, and the
Restricted Stock Units are, subject in all respects to, the terms of the Plan. The Grantee further acknowledges and agrees that
(a) the signature to this Agreement on behalf of the Company is an electronic signature that will be treated as an original signature
for all purposes hereunder, and (b) such electronic signature will be binding against the Company and will create a legally binding
agreement when this Agreement is countersigned by the Grantee.

 

[The
remainder of this page is intentionally left blank]

 

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Executed
as of the 26th day of December, 2019.

 

 

	Company:	 	THE
    MICHAELS COMPANIES, INC.
	 	 	 
	 	 	 
	 	 	By:	/s/ Holly Shaskey-Platek
	 	 	Name:
    Holly Shaskey-Platek
	 	 	Title:   Executive Vice President, Chief Human Resources Officer
	 	 	 
	 	 	 
	Grantee:	 	/s/ Mark Cosby
	 	 	Name:  Mark Cosby
	 	 	Address:Exhibit 10.6

 

SECOND AMENDMENT TO LETTER AGREEMENT

 

This second amendment
(this “Amendment”) amends, effective December 26, 2019, the employment letter agreement entered into by and
between Mark Crosby (the “Executive” or “you”), Michaels Stores, Inc. (the “Company”)
and The Michaels Companies, Inc. (“Parent”), as previously amended on October 21, 2019, describing the terms
and conditions of the Executive’s employment with the Company (the “Letter Agreement”) as set forth below.
Capitalized terms not defined in this Amendment have the respective meanings ascribed to them in the Letter Agreement.

 

In consideration of
the mutual covenants contained herein and intending to be legally bound hereby, the parties hereto desire to amend the Letter Agreement
as follows:

 

1.             The following sentence shall be added to the end of Section 1(b) of the Letter Agreement:

 

“For the avoidance of doubt,
the earliest that you would be eligible to receive any equity awards of Parent in respect of any post-employment service on the
Board would be as part of Parent’s regular annual grant practices for members of the Board in March/April 2021.”

 

2.             The following sentence shall be added after the first sentence of Section 6(b) of the Letter Agreement:

 

“Notwithstanding anything
to the contrary set forth in the Annual Incentive Plan, in the event your employment hereunder is terminated by the Company without
Cause, you will be eligible for such pro-rated rated bonus based on your service through the termination date.”

 

3.             The following sentence shall be added to the end of Section 7 of the Letter Agreement:

 

“In the event your employment
hereunder is terminated by the Company without Cause because of the appointment of a new Chief Executive Officer of the Company,
subject to your timely electing continued coverage of your group medical and dental coverage under COBRA (“COBRA Coverage”)
and signing an effective release of claims in the form provided by the Company, the Company will pay you a monthly cash amount
for so long as you continue to receive COBRA Coverage from the Company equal to (i) the Company-paid portion of the group medical
and dental plan premiums for your (and your spouse’s and dependents’ coverage, as applicable) coverage immediately
prior to your employment termination date, pro-rated for each payroll period, multiplied by (ii) 130%. The foregoing amounts shall
be paid in accordance with the Company’s regular payroll practices, commencing on the next regular payday that is at least
five (5) business days following the effective date of the release of claims.”

 

    

     

    

 

4.             By signing this Amendment, the Executive, the Company, and Parent are providing their express written consent to the changes
to the terms and conditions of the Executive’s employment described in this Amendment. Except as expressly modified herein,
the Letter Agreement remains in full force and effect, and is binding on the Executive, the Company, and Parent in accordance with
its terms. The Executive acknowledges and agrees that the Letter Agreement, as amended by this Amendment, constitutes the entire
agreement between the Executive, the Company, and Parent with respect to the terms and conditions of his employment and supersedes
all other agreements and understandings, whether written or oral.

 

[Signature page follows immediately]

 

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IN WITNESS WHEREOF,
this Amendment has been executed by the Company, by its duly authorized representative, by Parent, by its duly authorized representative,
and by you, as of the date first above written.

 

 

	MARK COSBY	 	THE COMPANY
	 	 	 	 
	 	 	 	 
	/s/
    Mark Cosby	 	By:	/s/
    Holly Shaskey-Platek
	 	 	Name:	Holly Shaskey-Platek
	 	 	Title:	Executive Vice President,
    Chief Human Resources Officer
	 	 	 	 
	 	 	 	 
		 	PARENT
	 	 	 	 
	 	 	 	 
	 	 	By:	/s/
    Holly Shaskey-Platek
	 	 	Name:	Holly Shaskey-Platek
	 	 	Title:	Executive Vice President,
    Chief Human Resources Officer

 

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