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Exhibit __________




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TABLE OF CONTENTS
 Eligibility
    
    
    1How the Plan Works
    
    
    2Your Individual Target Incentive
    
    
    2Weighting the Measures
    
    
    3Measuring Performance
    
    
    4Performance Multipliers
    
    
    4Performance Measures
    
    
    5Corporate Performance
    
    
    5Business Unit Performance
    
    
    6Individual Performance
    
    
    7Summary  Total Award Calculation
    
    
    8Appendix
    
    
    9Business Unit Plan Components
    
    
    9Administrative Details
    
    
    10Definition of Common Terms
    
    
    11




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN1
 AMERICAN GREETINGS
KEY MANAGEMENT
ANNUAL INCENTIVE PLAN
 n ELIGIBILITY
      PRIMARY BUSINESS UNIT
    
    

PARTICIPANTSCorporate Consolidated
    
    
    Chairman, Chief Executive Officer, President andChief Operating Officer and other Section 16Executive OfficersTotal Social Expressions Group (SEG)
    
    
    Associates who are part of:AGI In StoreBusiness IntelligenceCanadaCarlton MexicoCarlton RetailCorporate Staff (Delta, Finance, HR, ISD, Legal)CreativeDesignWare & Specialty SBUEveryday & Seasonal CardsField SalesField Sales Operations (FSO)Gift Packaging & Holiday SBUGlobal SourcingInbound LicensingInvention LabPlantsAll other North American Greeting CardDivision unitsAG Intellectual Properties Group
    
    
    AGIP Corporate StaffAG Interactive
    
    
    AG Interactive associatesAG Properties
    
    
    AG Properties associatesUK Greetings
    
    
    UK Greetings associatesJohn Sands Group
    
    
    John Sands Group associatesKey Managers include individuals in Key Manager 1 and Key Manager 2 job levels. Officers
include Corporate-level Executive Directors, Vice Presidents, Senior Vice Presidents, President and
Chief Operating Officer, Chief Executive Officer, Chairman of the Board and any other job level(s)
that may be designated.




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN2
  n HOW THE PLAN WORKS
  §
    
    Corporate Performance.At the beginning of each fiscal year, the American Greetings
Board of Directors approves the corporate earnings per share (EPS) goal for the year. Actual
corporate results are compared to this goal at the end of the fiscal year.§
    
    Business Unit Performance.Every year, each business unit develops an earnings goal 
which is approved by the Board of Directors  based on its strategic direction, business
opportunities and growth projections. Business unit performance is based on actual fiscal year
earnings results for your assigned business unit compared to goal.§
    
    Individual Performance.Your manager will determine your individual performance
compared to your objectives for the year. Your actual fiscal year-end performance rating
determines the percentage of the target individual incentive amount you earn.
 YOUR INDIVIDUAL TARGET INCENTIVE
  
 target
 EXAMPLEFor example, assume Joe is a Key Manager 1 with base earnings of $60,000. His target incentive
under the Plan is 10%, or $6,000 ($60,000 x 10% = $6,000).Well refer to Joe throughout this brochure as we describe how the Plan works.




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN3
 WEIGHTING THE MEASURES
     FISCAL YEAR 2008 WEIGHTINGSJOB LEVEL
    
    
    Corporate
    
    
    Business Unit
    
    
    IndividualChairman of the Board, CEO, President
and COO, Senior Vice Presidents and other
Section 16 Executive Officers
    
    
    30%
    
    
    40%
    
    
    30%Vice Presidents, Executive Directors,
Key Managers 2, Key Managers 1
    
    
    20%
    
    
    50%
    
    
    30%  EXAMPLE

Joe, a Key Manager 1 with base earnings of $60,000 and a 10% incentive target, would have the
following set of performance measure weightings and target incentive awards:
 
 Corporate            Business Unit            Individual            Total
Key Manager 1 Weightings 20% 50% 30% 100% Joes Target Incentive 2% 5% 3% 10% (Percent of Base Earnings) (10% x 20%) (10% x 50%) (10% x
30%) Joes Target Incentive ($) $1,200$3,000$1,800 $6,000
($ 60,000 x 2%) ($60,000 x 5%) ($60,000 x 3%)




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN4
 MEASURING PERFORMANCE
    PERFORMANCE THRESHOLD


The corporate performance threshold is 90% of the fiscal year earnings goal.
 n
    
    Below Target Performance.If actual earnings results do not meet a minimum level of
performance  the performance threshold  no incentive award is earned for that performance
measure. Earnings results that fall between threshold and goal result in a reduced incentive
award.n
    
    Target Performance.When actual results meet the earnings goal, you receive 100% of
the target incentive award for that performance measure.n
    
    Above Target Performance.When actual results exceed the earnings goal, you can
receive up to 200% of the targeted incentive award for that performance measure.
 performance
multiplier,
 PERFORMANCE MULTIPLIERS
     
 Example of a performance adjustment when the percent of goal achieved is 105% and the
performance multiplier is 4 100% + ( 4x 5% ) = 120% Target            Performance Results Above Performance Performance            Multiplier            Goal            Adjustment Important Note: Business unit performance multipliers vary by business unit. The multiplier
assigned to your business unit is provided in your fiscal year 2008 Incentive Plan Statement. A
list of all business unit multipliers is provided in the Appendix.




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN5
 n
    
    PERFORMANCE MEASURES
 CORPORATE PERFORMANCE
 
   CORPORATE PERFORMANCE + BUSINESS UNIT
PERFORMANCE + INDIVIDUAL PERFORMANCE  EXAMPLE

Joe is a KM1 with $60,000 in base earnings. Lets assume corporate EPS performance at
year-end is 105% of goal. Joes corporate incentive award is calculated in three steps:


1.
    
    Determine the corporate performance adjustment factor2.
    
    Apply the corporate performance adjustment to Joes target incentive percentage for the
corporate component3.
    
    Multiply the result by Joes base earnings
 
 100% + ( 4 x 5% ) = 120% Target Performance Corporate Results Above Goal Performance Adjustment
Performance Multiplier CORPORATE INCENTIVE Joes Target
Incentive 2% Performance Adjustment x 120% Joes Base Earnings
x $60,000 Joes Incentive Earned = $1,440




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN6
 BUSINESS UNIT PERFORMANCE
   n
    
    Business Unit Pro Forma Earnings Before Interest and Taxes (Business Unit Pro Forma
EBIT), orn
    
    Corporate Earnings Before Interest and Taxes (Corporate EBIT).
 n
    
    The performance threshold for all primary and sub-business units, except for Carlton
Cards Retail, is 90% of goal.n
    
    The performance threshold for Carlton Cards Retail is 60% of goal.
  
 CORPORATE PERFORMANCE + BUSINESS UNIT
PERFORMANCE + INDIVIDUAL PERFORMANCE
      EXAMPLE
Joe is a KM1 with $60,000 in base earnings. Lets assume his Business Unit has a
performance multiplier of 4 and that its performance at year-end is 96% of goal. Joes
business unit incentive award is calculated in three steps:


1.
    
    Determine the business unit performance adjustment2.
    
    Apply the business unit performance adjustment to Joes target incentive percentage for
the business unit component3.
    
    Multiply the result by Joes base earnings
 
 100% + ( 4 x  4% ) = 84% Target Performance Business Unit Results Below Goal Business Unit
Performance Multiplier Performance Adjustment BUSINESS UNIT INCENTIVE Joes Target
Incentive 5% Performance Adjustment x 84% Joes Base Earnings x
$60,000 Joes Incentive Earned = $2,520




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN7
 INDIVIDUAL PERFORMANCE
   §
    
    Participants who receive an
Exceeds Expectations performance
rating receive the target incentive for
the individual performance measure
multiplied by 150%. In certain
circumstances, this target can be
increased to 200%1.§
    
    Participants who receive a Meets
Expectations rating will receive 100% of
their target individual incentive.§
    
    Participants who receive an
Improvement Expected/ Performance Below
Peer Level rating will not receive an
individual performance incentive and will
only receive 50% of any incentive
otherwise earned.
 §
    
    Participants who receive an
Exceeds Expectations performance
rating will receive 50% of the target
incentive payable for the individual
performance component.
 §
    
    Participants who receive a Meets
Expectations or Improvement Expected/Below
Peer Level performance rating will not
receive any portion of the individual
performance incentive.
     
 
     
 
 1

    Managers can, at their discretion, increase the Individual Payout Percentage to
200% for associates rated as Exceeds Expectations who demonstrate an extraordinary level of
performance. Accomplishments must be the result of extraordinary effort and initiative that go well
beyond the contributions of other associates rated as Exceeds Expectations. The number of persons
eligible to receive an Individual Payout Percentage of 200% may not exceed one-third of the total
number of associates rated as Exceeds Expectations.




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN8
  n SUMMARYTOTAL AWARD CALCULATION
  EXAMPLEThe following example shows how Joes actual incentive award is calculated based on the assumptions that were used throughout this brochure:JOES
ASSUMPTIONS
   

   PERFORMANCE
ASSUMPTIONSBase Earnings:
   $60,000
   Corporate:
   105% of GoalIndividual Target Percentage:
   10%
   Business Unit:
   96% of GoalIndividual Target Incentive:
     $6,000
      Individual:
      Exceeds Expectations




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN9
 n APPENDIX
    BUSINESS UNIT COMPONENTSBUSINESS UNIT/
    
    

    PERFORMANCE
    
    
    
    
    
    
    
    
    
    
    
    
    PERFORMANCEPARTICIPANTS
    
    
    MEASURE
    
    
    WEIGHT
    
    
    MULTIPLIERPrimary Unit
    
    
    Sub Unit
    
    
    Primary Unit
    
    
    Sub Unit
    
    
    Primary Unit
    
    
    Sub UnitCorporate Consolidated
Chairman, CEO, President
and COO and Section 16
Executive Officers
    
    
    Corporate EBIT
    
    
    
    
    
    
    100
    %
    
    
    
    
    
    
    
    
    4Business Intelligence, 
Canada, Carlton Mexico, 
Corporate Staff (Delta, 
Finance, HR, ISD, Legal), 
Creative, DesignWare &
Specialty SBU, Everyday
& Seasonal Cards, Field 
Sales, FSO, Gift Packaging & Holiday SBU, 
Global Sourcing, Invention 
Lab, Plants, all other 
North American Greeting 
Card Division units
    
    
    Total SEG(1)
    
    
    
    
    
    
    100
    %
    
    
    
    
    
    
    
    
    4Inbound Licensing
    
    
    Total SEG(1)
    
    
    AG Interactive pro forma EBIT
    
    
    
    50
    %
    
    
    
    50
    %
    
    
    
    4
    
    
    
    
    2AGI In Store
    
    
    Total SEG(1)
    
    
    AGI In Store pro forma EBIT
    
    
    
    50
    %
    
    
    
    50
    %
    
    
    
    4
    
    
    
    
    2Carlton Cards Retail
    
    
    Total SEG(1)
    
    
    Carlton Cards Retail pro forma EBIT
    
    
    
    25
    %
    
    
    
    75
    %
    
    
    
    4
    
    
    
    
    1AG Intellectual Properties
Group  Corporate Staff
    
    
    AG Interactive pro forma EBIT +
AG Properties pro forma EBIT
    
    
    
    
    
    
    100
    %
    
    
    
    
    
    
    
    
    2AG Interactive
    
    
    AG Interactive pro forma EBIT
    
    
    
    
    
    
    100
    %
    
    
    
    
    
    
    
    
    2AG Properties
    
    
    AG Properties pro forma EBIT
    
    
    
    
    
    
    100
    %
    
    
    
    
    
    
    
    
    2UK Greetings
    
    
    UK Greetings pro forma EBIT
    
    
    
    
    
    
    100
    %
    
    
    
    
    
    
    
    
    4John Sands Group
    
    
    John Sands Group pro forma EBIT
    
    
    
    
    
    
    100
    %
    
    
    
    
    
    
    
    
    2
 
 (1)
    
    Total SEG = NAGCD pro forma EBIT (includes Carlton Mexico pro forma EBIT, Retail
Eliminations and Corporate Expense) + Carlton Cards Retail pro forma EBIT + AGI In Store pro forma
EBIT




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN10
  ADMINISTRATIVE DETAILS
  §
    
    New Hires.If you are hired
during the Plan year defined as the
American Greetings fiscal year ending
February 29, 2008  and are eligible to
participate in the Key Management Annual
Incentive Plan, you will receive a
prorated incentive payout based on the
period of time you participated in the
Plan and your base earnings during that
time.§
    
    Promotions and Transfers.If you
are promoted or you move from one business
unit to another during the Plan year, your
individual target incentive, base earnings,
business unit goal and corresponding
performance multiplier may change. If any of
these do change, your incentive will be
calculated based on the targets, base
earnings, plan provisions and actual
performance for each business unit you
participated in on a prorated basis basis
and rounded to the nearest full month.§
    
    Termination.If you voluntarily
or involuntarily leave American Greetings
before the completion of the Plan year,
you will forfeit your Key Management
Annual Incentive Plan award for that
fiscal year.§
    
    Retirement, Leave of Absence,
Disability, Death.If your employment
ends during the Plan year because you
elect to retire after age 60, or if you
take a leave of absence, suffer a
permanent disability or die, your
incentive payout will be prorated to the
nearest full month based on the actual
period you participated in the Plan
during the year.An associate will be deemed to
suffer a permanent disability only in the
following circumstances: (A) where an
associate is absent from employment with
American Greetings due to his or her
inability to engage in any substantial
gainful activity by reason of any medically
determinable physical or mental impairment,
which either can be expected to result in
death, or can be expected to last for a
continuous period of not less than 12
months; or (B) where an associate is
scheduled
 to receive income replacement benefits for a
period of not less than 3 months under an
accident and health plan covering American
Greetings associate on account of a medically
determinable physical or mental impairment that
can be expected to result in death or last for
a continuous period of not less than 12 months.§
    
    Incentive Payout.Incentive
payouts earned in fiscal year 2008 will be
paid to participants within two and
one-half months following the end of fiscal
2008, typically within 60 days after the
end of the fiscal year. Incentive payouts
are subject to normal tax withholding at a
standardized rate and will be deposited to
a bank account of your choice.§
    
    It is the intent that incentive
payouts fall under the short-term deferral
rules of Section 409A of the Internal
Revenue Code to exempt the payment of such
Key Management Annual Incentive Plan
benefits from the requirements of Section
409A.§
    
    Calculating Payouts.For
computation purposes, financial goals
and actual performance results are
rounded to the nearest $1,000. The
percent of the financial goal achieved
and the percent of target bonus earned
is rounded to the nearest one-tenth of
one percent. The actual incentive payout
is rounded to the nearest dollar.§
    
    Omnibus Incentive Plan.The Key
Management Annual Incentive Plan is
governed by the American Greetings
Corporation 2007 Omnibus Incentive
Compensation Plan, as such plan may be
amended from time to time. In the event of
a conflict between the Key Management
Annual Incentive Plan and the Omnibus
Incentive Plan, the terms of the Omnibus
Incentive Plan will govern.§
    
    Questions.If you have questions
about the Key Management Annual Incentive
Plan and how it works, please contact your
manager. Your manager will work with you
to ensure you understand the Plan so you
can maximize your annual incentive.




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AMERICAN GREETINGS KEY MANAGEMENT ANNUAL INCENTIVE PLAN11
 DEFINITION OF COMMON TERMS
  §
    
    Base Earnings.Your base earnings
are defined as your base salary earned
during the fiscal year. Base earnings
exclude health and welfare benefits, bonus,
commission, and incentive payments, overtime
and other indirect compensation. Base
earnings for Plan participants outside of
the U.S. may be defined differently and may
vary by country.§

    
    Business Unit EBIT.A business units
earnings before interest and taxes.§

    
    Business Unit Pro Forma EBIT.A
business units earnings before interest and
taxes, charged/credited for any variation
from plan in Net Capital Employed at the
weighted average cost of capital.§
    
    Corporate Earnings Per Share (EPS).
Corporate earnings per share is measured at the
end of the fiscal year and is calculated as
corporate pre-tax income minus taxes divided by
the total number of planned shares outstanding
as calculated on a fully diluted basis.
 §
    
    Corporate Earnings Before Interest and
Taxes (Corporate EBIT).Consolidated corporate
earnings before interest and taxes,
charged/credited for any variation from plan in
Net Capital Employed at the weighted average
cost of capital.§
    
    Fiscal Year.March 1 through
February 28 or 29 of the following
calendar year.§
    
    Net Capital Employed (NCE).Assets
(minus cash and LIFO reserve) minus liabilities
(not including interest-bearing debt,
inter-company payables and income taxes).




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Nothing in this brochure or in any individual Incentive Compensation Statement should be construed
to create or imply any contract of employment between an associate and American Greetings and its
subsidiaries or to create any binding contractual right to payment of any specific amount under the
American Greetings Key Management Annual Incentive Plan. The provisions of this brochure describe
the general guidelines used by American Greetings in determining the benefits payable to Plan
participants; however, in every case, American Greetings reserves the right to reduce or eliminate
the amount that would otherwise be payable to a participant or participants under such guidelines
where it determines, in its discretion, that such a reduction is necessary or appropriate, in light
of the participants performance or other relevant business circumstances.
 American Greetings reserves the right to terminate or make changes to the Plan, including
retroactively, at any time without prior notice to any of the Plans participants (provided, that
no amendment to the Plan adopted more than 90 days after the beginning of the applicable fiscal
year may have the effect of increasing the amount that is or could be payable under the guidelines
set forth herein for such fiscal year to any participant who is a covered employee of American
Greetings as defined in section 162(m)(3) of the Internal Revenue Code). In the case of our
executive officers, the Board of Directors (or committee thereof), and in the case of all other
participants, the Board of Directors (or committee thereof), the Chief Executive Officer and the
Chairman are the only persons who have the authority to alter or amend this Plan. Any such
alteration or amendment must be done in writing. No participant should rely on an alteration or
amendment to this Plan unless it is made in writing and signed by the Chief Executive Officer or
the Chairman.




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Individual Performance
 §
    
    A new performance rating of Satisfactory has been added to categorize the
achievement of goals and objectives at an overall performance level that is greater than
the Improvement Expected / Performance Below Peer Level performance rating, but less
than the Meets Expectations rating.§
    
    There is not a specified target for the percentage of officers to be rated
either as Satisfactory or Meets Expectations; however, on a combined basis, the
targeted percentage of Senior Executive Officers to be rated Meets Expectations or
Satisfactory is 60%.
 §
    
    For Senior Executive Officers, the targeted percentage of participants for the
Exceeds Performance rating is 30%; the targeted percentage for the Meets Expectations
or Satisfactory performance ratings on a combined basis is 60%; and the targeted
percentage for the Improvement Expected / Performance Below Peer Level is 10%. (See
chart on the following page.)§
    
    As with other participants, Senior Executive Officers who receive an Exceeds
Expectations performance rating receive the target incentive for the individual
performance measure multiplied by 150%. In certain circumstances, this target can be
increased to 200%. (1)§
    
    As with other participants, Senior Executive Officers who receive a




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Meets Expectations rating will receive 100% of their target individual incentive.§
    
    Senior Executive Officers who receive a Satisfactory rating
will receive 50% of their target individual incentive.§
    
    As with other participants, Senior Executive Officers who receive an
Improvement Expected / Performance Below Peer Level rating will not receive an
individual performance incentive and will only receive 50% of any incentive otherwise
earned.
  §
    
    Participants, including Senior Executive Officers, who receive an Exceeds
Expectations performance rating, will receive 50% of the target incentive payable for the
individual performance component.§
    
    Senior Executives who receive a Meets Expectations, Satisfactory, or
Improvement Expected / Below Peer Level performance rating will not receive any portion
of the individual performance incentive.
 (1)