Document:

Exhibit 10(n)

                              CONSULTING AGREEMENT

         CONSULTING  AGREEMENT  ("Agreement")  made as of Nov. 8, 1999 by and
between AMSCAN INC., a New York  corporation  with a principal place of business
at 80 Grasslands Road,  Elmsford,  New York 10523 (the "Company") and WILLIAM S.
WILKEY,  an  individual  residing  at 123  Harbor  Drive,  Unit  212,  Stamford,
Connecticut 06902 (the "Consultant").

         WHEREAS,  Consultant has previously rendered services to the Company as
an officer and employee of the Company; and

         WHEREAS,  the  employment  relationship  between  the  Company  and the
Consultant has terminated; and

         WHEREAS,  the Company desires to continue to benefit from the knowledge
and  expertise of the  Consultant  and thereby  wishes to retain the  consulting
services of the  Consultant  and the  Consultant  is willing to provide  certain
consulting  services to the Company  relating to the  marketing  and sale of the
Company's products;

         NOW,  THEREFORE,  in  consideration of the foregoing and other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties
agree as follows:

1.   APPOINTMENT.  The Company hereby retains the Consultant during the Term, as
     defined  in  Section  2, to render to the  Company,  its  subsidiaries  and
     affiliates,  services of an advisory or consultative  nature in the area of
     sales,  marketing,  pricing and customer  relations so that the Company may
     have the benefit of the  experience,  knowledge and contacts  gained by the
     Consultant as an employee and officer of the Company (the  "Services")  and
     career with the industry. Consultant hereby agrees to render to the Company
     the Services during the Term in accordance with the terms and provisions of
     this Agreement.

2.   TERM.

     (a)  TERM. The term of this Agreement  shall commence as of the date hereof
          and shall,  unless sooner  terminated as provided herein,  continue in
          full force and effect until September 30, 2002 (the "Term").

<PAGE>

     (b)  TERMINATION. Notwithstanding the foregoing, the Consultant's retention
          by the Company hereunder shall terminate upon the occurrence of any of
          the following events:

              (i)    the  mutual  agreement,  in  writing,  at any time,  by the
                     Consultant and the Company to terminate such retention;

              (ii)   the death of the Consultant;

              (iii)  the unilateral  cessation or discontinuance by the
                     Consultant of his rendering the Services to the Company;

              (iv)   upon thirty (30) days written notice by the Company and the
                     payment of the amount set forth in Paragraph 2(e); or

              (v)    the  termination  of  the  Consultant's  retention  by  the
                     Company, for "Cause", as hereinafter defined.

     (c)  TERMINATION  FOR CAUSE.  For the purposes of this  Agreement,  "Cause"
          shall mean any of the following:

              (i)    the  violation  by  the   Consultant  of  any  law  or  the
                     commission  by the  Consultant  of any  crime  or an act of
                     fraud against the Company;

              (ii)   a breach  of any of the terms of the  Separation  Agreement
                     between the Company and the Consultant dated as of the date
                     hereof;

              (iii)  any material breach of this Agreement; or

              (iv)   any  conduct  on the  part of the  Consultant  which  has a
                     material   adverse  effect  upon  the  performance  by  the
                     Consultant  of his duties  hereunder or a material  adverse
                     effect  upon  the  relationship  of  any  customers  and/or
                     employees  of  the  Company  or   potential   customers  or
                     employees of the Company with the Company.

     (d)  NO RIGHTS AFTER TERMINATION.  Upon the termination of the Consultant's
          retention hereunder,  whether at the natural end of the Term or in the
          event of the earlier  termination of the Term as provided herein,  the
          Consultant  shall have no further rights under this Agreement,  except
          as expressly  set forth  herein.  Nothing  herein  contained  shall be
          deemed to preclude the Company from  enforcing any remedies  available
          to it at law or equity in consequence

                                      -2-
<PAGE>

          of a breach by the  Consultant  of his  obligations  to the Company or
          available  to the  Company  under the  provisions  of this  Agreement,
          including without  limitation,  the enforcement of any confidentiality
          obligations or  restrictive  covenants  hereunder,  all of which shall
          survive  the  termination  of the  Term  and  the  termination  of the
          Consultant's retention hereunder by the Company.

     (e)  Upon  termination  of this Agreement  pursuant to Paragraph  2(b)(iv),
          Consultant  shall  be  entitled  to  receive  an  amount  equal to the
          compensation payable for the remaining term of this Agreement.

3.   STOCKHOLDERS' AGREEMENT.

     (a)  WAIVER OF CALL RIGHTS. The Company agrees that during the term of this
          Agreement,  it shall  not  exercise  its  "call  rights"  pursuant  to
          Paragraph 4.1 of that certain Stockholders  Agreement,  dated December
          19,  1997,  as amended by  Amendment  No. 1 dated as of August 6, 1998
          (the   "Stockholders'   Agreement")   among   the   Company   and  its
          stockholders.

     (b)  EFFECT OF TERMINATION ON  STOCKHOLDERS  AGREEMENT.  The parties hereby
          expressly agree that the termination of the Company's retention of the
          Consultant hereunder,  whether upon the natural expiration of the Term
          or pursuant to the provisions of clause (b) or clause (c) above, shall
          result in the Company  immediately  having the right to  exercise  its
          call rights set forth in Paragraph 4.1 of the Stockholders Agreement.

4.   PERFORMANCE OF SERVICES.

     (a)  SERVICES.  During the Term, the Consultant  shall devote such business
          time,  skill and  efforts to the affairs of the Company as the Company
          shall  reasonably  determine  is  necessary to permit the faithful and
          diligent performance of his duties hereunder.

     (b)  COMMUNICATIONS WITH COMPANY AND PERSONNEL. Notwithstanding anything to
          the contrary  otherwise  contained  herein,  all  communication by the
          Consultant  with the Company,  its employees,  customers and suppliers
          shall be made exclusively  through Gerry  Rittenberg  unless otherwise
          specifically requested by Mr. Rittenberg.

     (c)  INDEPENDENT CONTRACTOR. The Consultant shall at all times act strictly
          and  exclusively  as  an  independent  contractor  and  shall  not  be
          considered  as having  employee  status under any law,  regulation  or
          ordinance or as being

                                      -3-
<PAGE>

          entitled  to  participate  in or  benefit  under  any plan or  program
          established  at any  time  by  the  Company  for  its  employees.  The
          Consultant shall have no managerial  authority or responsibility of an
          officer or supervisor of the Company.  The  Consultant  shall not have
          any  authority  to bind the  Company to any  contract or to commit the
          Company  in any  manner  whatsoever.  The  Consultant  shall  not hold
          himself out as representative or agent of the Company.

     (d)  APPLICABLE   LAWS.  The  Consultant  shall  perform  the  Services  in
          conformity with all applicable laws,  regulations,  decrees,  policies
          and  orders  and  shall  at  all  times  provide  the  Services  in  a
          professional manner.

5.   COMPENSATION.  The  Company  agrees to pay,  and the  Consultant  agrees to
     accept,  in full  consideration  for the  performance  by Consultant of the
     Services,  annual  compensation  of $220,500.  Such  compensation  shall be
     payable in monthly  installments.  In the event of the  termination  of the
     Consultant's retention hereunder before the end of any 12 month period, the
     compensation for the year of termination  shall be pro-rated to the date of
     termination.

6.   RESTRICTIVE  COVENANT. In consideration of his special and unique services,
     as Executive  Vice President of Sales while employed by the Company and his
     position as a key  executive  officer of the Company and as a result of his
     retention as Consultant hereunder,  Consultant has been brought and will be
     brought into close contact with trade secrets,  proprietary information and
     other  confidential  material  and  assets of the  Company  and  Consultant
     covenants and agrees as follows with the Company:

     (a)  For  the   purposes  of  this   Agreement,   the  term   "Confidential
          Information" shall mean any data, proprietary  information,  financial
          information,  trade  secrets,  and other  materials  and  information,
          including,  without limitation,  contracts,  customer lists,  supplier
          lists,  and the names of  representatives  of customers  and suppliers
          responsible  for entering into contracts with the Company  information
          as to specific  customer needs,  requirements  and purchasing  history
          pricing  information,   information  relating  to  costs,   marketing,
          selling,  customers  and  suppliers,  servicing,   technology,  plans,
          processes, techniques,  inventions,  discoveries, designs, patterns or
          devices in any way concerning the operation of the Company's business.
          The term  Confidential  Information  does not include any  information
          which (i) at the time of  disclosure  is  generally  available  to the
          public (other than as a result of a disclosure  directly or indirectly
          by Consultant, or (ii) has been

                                      -4-
<PAGE>

          independently  acquired or developed by a third party not obligated to
          keep such information confidential.

     (b)  Consultant hereby agrees that during the term of this Agreement and at
          all times  thereafter that he: (i) will keep  confidential and protect
          all Confidential  Information (as hereinabove defined) known to him or
          in his possession, (ii) will not disclose any Confidential Information
          to any person or entity,  except as may be required in the performance
          by him of his  duties  as of the  Company,  (iii)  will  not  use  any
          Confidential  Information  except  for the  exclusive  benefit  of the
          Company  and (iv) will  return  any  Confidential  Information  and/or
          documents containing  Confidential  Information at the end of the term
          or at any time at the Company's request.

     (c)  As used in this Agreement,  the term "Covenant  Period" shall mean the
          period commencing on the date of this Agreement and ending on the date
          that is three (3) years after the last day of  Consultant's  retention
          hereunder.  During the Covenant Period,  Consultant shall not directly
          or indirectly (whether as owner, principal,  agent, partner,  officer,
          employee,   independent  contractor,   consultant,   stockholder,   or
          otherwise), engage or participate or have any financial interest in or
          perform   services  for,  any  entity  which  offers  any  service  in
          competition  with the Company or engage in or perform  services in any
          business or activity  involved in or related to the business which the
          Company any of its  affiliates is now or may hereafter  become engaged
          in, any location where such activity would be in competition  with the
          business of the Company.  The Employee  acknowledges  that the Company
          now carries on its business in many trading areas throughout the world
          and in particular in the United States and Canada.

     (d)  During the Covenant Period,  Consultant shall not, for himself or with
          or as an agent for any other  person,  firm,  corporation  or  entity,
          directly or  indirectly,  solicit or provide  services to or divert or
          otherwise interfere with the business relationship of the company with
          (i) any person or entity who is a client or customer of the Company at
          any time during the Covenant  Period or (ii) any potential  clients or
          customers with whom the Company is actively negotiating at the time of
          termination of Consultant's retention hereunder.

     (e)  During  the  Covenant   Period,   Consultant  shall  not  directly  or
          indirectly,  for  his own  benefit  or for the  benefit  of any  other
          person,  firm,  corporation or entity,  divert,  or attempt to divert,
          solicit,  recruit,  entice  or hire away any  employees,  consultants,
          artists or independent contractors of the Company,  whether or not any
          such person is a full-time, part-time or temporary

                                      -5-
<PAGE>

          employee, consultant or independent contractor and whether or not such
          person's  employment or  engagement  is for a determined  period or at
          will,  unless  such  person  shall have  ceased to be employed by such
          entity  for a period  of at  least  12  months.  For  purposes  of the
          provision,   employees   shall  be  deemed  to   include   independent
          contractors.

     (f)  SEVERABILITY.  If a court of competent  jurisdiction  shall  determine
          that the covenant  contained  in this  Section 6 shall be  enforceable
          only  if  limited  to a  shorter  period  of  time  or  to  a  smaller
          geographical  area than is herein  expressly  provided,  or  otherwise
          limited,  then and in such event,  such covenant shall be deemed to be
          limited to the extent so  determined  to be  enforceable,  in the same
          manner and to the same extent as if such  limitations  were  expressly
          provided herein.

7.   RIGHTS AND REMEDIES.

     (a)  REMEDIES.  The  Consultant  acknowledges  that he  will be  performing
          unique duties for the Company and that the provisions of Section 6 are
          reasonable  and necessary for the  protection of the Company.  Each of
          the rights and remedies  enumerated herein shall be independent of the
          other,  and shall be severally  enforceable and all of such rights and
          remedies shall be in addition to, and not in lieu of, any other rights
          and  remedies  available  to  the  Company  under  law  or in  equity.
          Consequently,  in the event that the Consultant  commits a breach,  or
          threatens to commit a breach, of any of the provisions of Section 6 of
          this Agreement,  the Company, in addition to any other remedies it may
          have  at law  or in  equity,  shall  have  the  following  rights  and
          remedies:

              (i)    The right and remedy to obtain a  preliminary  or permanent
                     injunction  enjoining such breach or threatened  breach, it
                     being  acknowledged  and  agreed  that any such  breach  or
                     threatened  breach  will  cause  irreparable  injury to the
                     Company and that money  damages  alone will be difficult to
                     determine  and will  provide  an  inadequate  remedy to the
                     Company; and

              (ii)   The right and remedy to require the  Consultant  to account
                     for and pay over to the Company all compensation,  profits,
                     or other benefits  derived or received by the Consultant as
                     the result of any transactions constituting a breach of any
                     of  the  provisions  of  Section  5 or  Section  6 of  this
                     Agreement,  and the Consultant hereby agrees to account for
                     and pay over same to the Company.

                                      -6-
<PAGE>

8.   SUCCESSORS  AND  ASSIGNS.  This  Agreement  shall be binding upon and shall
     inure to the  benefit of the parties and their  respective  successors  and
     assigns hereto;  provided,  however, that neither this Agreement nor any of
     the rights,  duties and obligations of the Consultant  shall be assignable,
     transferable or subject to delegation  without the prior written consent of
     the Company and any attempted  assignment,  transfer or delegation  without
     such written consent shall be null and void.

9.   AMENDMENT.  This  Agreement  may be amended  only in writing  signed by the
     party against which such amendment is sought to be enforced.

10.  WAIVERS,  ETC.  Compliance with any provision  hereof may be waived only in
     writing  signed  by the party  against  which  such  waiver is sought to be
     enforced. No exercise of or failure to exercise any right hereunder, and no
     partial or single exercise of any such right, shall operate as a waiver, or
     otherwise affect such exercise or any other exercise,  of that or any other
     right, it being  understood that all such rights and all remedies  therefor
     are intended to be cumulative and not exclusive.

11.  NOTICES.  All  notices  and  other  communications  required  or  permitted
     hereunder shall be in writing (including  facsimile) and shall be deemed to
     have been duly given when delivered by hand, faxed or mailed,  certified or
     registered  mail,  return  receipt  requested  and  postage  prepaid to the
     parties at their  respective  addresses  and  facsimile  numbers  set forth
     below,  or at such  other  address or  facsimile  number as the party to be
     notified may have otherwise designated,  by notice in writing, to the other
     party:

     (a)      If to the Company:        Amscan Inc.
                                        80 Grasslands Road
                                        Elmsford, New York 10523
                                        Attention: James M. Harrison
                                        Facsimile No.: 914-345-2056

                                      -7-
<PAGE>

              with a copy to:           Kurzman & Eisenberg, LLP
                                        One North Broadway
                                        White Plains, New York 10601
                                        Attention: Joel S. Lever, Esq.
                                        Facsimile No.: 914-285-9855

     (b)      If to the Consultant:     Mr. William Wilkey
                                        123 Harbor Drive
                                        Unit 212
                                        Stamford, CT 06902
                                        Facsimile No.:

              with a copy to:
                                        --------------------------
                                        --------------------------
                                        --------------------------

12.  GOVERNING  LAW.  This  Agreement  shall be governed by, and  construed  and
     enforced in accordance with, the laws of the State of New York.

13.  COUNTERPARTS.  This Agreement may be executed in one or more  counterparts,
     each of which shall be deemed an original,  but all of which together shall
     constitute one and the same instrument.

14.  FACSIMILE  SIGNATURES.  Receipt  of  facsimile  copies of  signature  pages
     hereof,  as between the  recipient  thereof and the party that executed and
     sent the same, shall constitute delivery of such signature pages; provided,
     however,  that  originals  are  promptly  delivered by  commercial  courier
     service.

15.  SEVERABILITY.  If any  provision  of  this  Agreement,  or the  application
     thereof to any person, place or circumstance,  shall be held to be invalid,
     unenforceable or void in any jurisdiction,  the remainder of this Agreement
     and such provisions as applied to other persons,  places and  circumstances
     shall remain in full force and effect and such holding shall not effect the
     validity,  legality  or  enforceability  of such  provisions  in any  other
     jurisdiction.

                                      -8-
<PAGE>

         IN WITNESS  WHEREOF,  the  parties  have caused  this  Agreement  to be
executed on the date first written above.

                                            AMSCAN INC.

                                            By: /s/ JAMES M. HARRISON
                                                -----------------------------
                                                Name:
                                                Title:

                                            /s/ WILLIAM S. WILKEY
                                            ---------------------------------
                                            WILLIAM S. WILKEY

                                      -9-Exhibit 10(o)

                  AMENDED FULL RECOURSE SECURED PROMISSORY NOTE
                  ---------------------------------------------
                               ("MANAGEMENT NOTE")

                                                               December 19, 1997
$500,000.00                                           As Amended October 1, 1999

         FOR VALUE RECEIVED, the undersigned, William S. Wilkey (the "Management
Investor"),  hereby  promises  to pay  to  Amscan  Holdings,  Inc.,  a  Delaware
corporation (the  "Company"),  or to the legal holder of this Management Note at
the  time of  payment,  the  principal  sum of  FIVE  HUNDRED  THOUSAND  DOLLARS
($500,000.00)  in lawful money of the United States of America,  plus  interest,
compounded  annually  (computed on the basis of twelve  30-day  months),  on the
unpaid  principal  of,  accrued and unpaid  interest,  if any, and other amounts
owing  in  respect  of this  Management  Note,  at a rate  of  6.65%  per  annum
compounding annually.  All principal of, accrued and unpaid interest on, and all
fees,  expenses and other amounts owing pursuant to the terms of this Management
Note will be due and payable on March 15, 2009.

         If the date set for payment of  principal  or interest  hereunder  is a
Saturday,  Sunday or legal holiday,  then such payment shall be made an the next
succeeding business day.

         This Management  Note, as amended herein,  evidences a loan made by the
Company to the Management  Investor to facilitate the purchase by the Management
Investor of 6.6666667  shares of Common Stock, par value $0.10 per share, of the
Company (the "Shares," which term shall include any additional  shares of common
stock of the Company pledged pursuant to the Stock Pledge Agreement  referred to
below) in  accordance  with the terms of a certain  Stock and Option  Agreement,
dated as of August 10, 1997, by and among the  Management  Investor and Confetti
Acquisition,  Inc.,  which has been  merged  with and into the  Company (as such
agreement may be amended from time to time,  the "Stock and Option  Agreement"),
and this Management Note is the note referred to in Section 1(a)(i) of the Stock
and Option  Agreement.  This  Management  Note has been amended as of October 1,
1999 in connection with the termination of the Management  Investor's employment
agreement with the Company pursuant to the terms of a Separation Agreement dated
October 1, 1999 (the  "Separation  Agreement") and the execution of a Consulting
Agreement between the Company and the Management  Investor dated October 1, 1999
(the "Consulting  Agreement").  Capitalized  terms used herein and not otherwise
defined  shall  have the  meanings  ascribed  to them in the  Stock  and  Option
Agreement and the Consulting Agreement. Payment of the principal of, interest on
and all other  amounts  owing in  respect  of this  Management  Note is  secured
pursuant to the terms of a certain Stock Pledge  Agreement  dated as of December
19, 1997 between the Management  Investor and the Company (as such agreement may
be amended from time to time, the "Stock Pledge Agreement"),  reference to which
is made for a description of the Collateral  provided  thereby and the rights of
the  Company  and  the  holder  of  this  Management  Note  in  respect  of such
collateral.

         This Management Note shall be payable by the Management  Investor in an
amount equal to

<PAGE>

one-quarter of any bonus received by the Management Investor from the Company on
the  date of  receipt  of such  bonus,  on the  date of  receipt  of such  bonus
corresponding  to the 1998 calendar  year. An annual  installment  shall also be
payable, calculated as set forth above, from the bonus payable to the Management
Investor and referred to in the Separation Agreement.  Each of such installments
shall be applied first to all fees and expenses due the Company hereunder,  then
to the payment of accrued  interest under this Management  Note, and then to the
reduction of the outstanding  principal  amount due under this Management  Note.
All  remaining  principal  of,  accrued  and unpaid  interest  on, and all fees,
expenses and other amounts owing pursuant to the terms of this  Management  Note
will be due and payable on March 15, 2009.

         This  Management  Note is subject to the  following  further  terms and
conditions:

         SECTION 1. MANDATORY  PREPAYMENT ON SALE OF SHARES.  If at any time the
Management Investor (or any of the Management  Investor's permitted  transferees
referred  to in  clauses  (i) and (ii) of  Section  2.3.2  of the  Stockholders'
Agreement  (the  "Stockholders  Agreement"),  dated as of December 19, 1997,  as
amended  August 6, 1998 among the Management  Investor,  the Company and certain
other  stockholders of the Company (the "Permitted  Transferees"))  receives any
proceeds from the sale by the  Management  Investor (or by any of the Management
Investor's  Permitted  Transferees)  of Shares to anyone  including  a Permitted
Transferee, the Net Proceeds (as defined below in this Section 1) from such sale
of Shares shall be applied to the  prepayment  first of unpaid fees and expenses
owing  hereunder,  second to the accrued and unpaid interest hereon and third to
the unpaid principal hereof.

         The term "Net Proceeds" shall mean the total proceeds received from the
sale  of  Shares  by the  Management  Investor  and  the  Management  Investor's
Permitted Transferees,  minus an amount equal to (x) any federal, state or local
income taxes due and payable in connection with and upon the sale of such Shares
and (y) any brokerage  commissions or similar  transaction  expenses incurred by
reason of the sale of such Shares.

         The  right  of the  Management  Investor  (or  any  of  the  Management
Investor's Permitted Transferees) to receive proceeds upon the sale of Shares is
subject to the prior right of the Company (i) in the case of a sale of Shares to
the  Company,  in lieu of the  Company  paying the  proceeds of such sale to the
Management Investor or any of the Management  Investor's Permitted  Transferees,
to set off  against  this  Management  Note (or  apply as a  prepayment  of this
Management  Note) an amount  equal to the Net  Proceeds of such sale (but not to
exceed the total of all amounts  outstanding  pursuant to this Management Note),
or  (ii)  in  the  case  of a  sale  of  Shares  to  certain  other  transferees
(collectively,  the "Management Transfer Parties") permitted (or not prohibited)
under  Section 2.3 (other than  transfers  without  consideration  under clauses
(a)(i) and  (a)(ii) of Section  2.3.2  thereof),  2.4,  2.5 of the  Stockholders
Agreement,  in  lieu of any of  such  Management  Transfer  Parties  paying  the
purchase  price  therefor to the  Management  Investor or any of the  Management
Investor's Permitted Transferees,  to direct such Management Transfer Parties to
pay an amount  equal to the Net Proceeds of such sale to the Company (but not to
exceed the total of all amounts  outstanding  pursuant to this Management  Note)
which shall set off such amount against this Management Note.

                                      -2-
<PAGE>

         Concurrently with any prepayment  (including by set-off) of any portion
of the principal  amount of this  Management  Note pursuant to this Section 1 or
Section 2 hereof,  the Company shall make a notation of such payment hereon.  If
full payment of all unpaid  principal of, accrued and unpaid interest on and all
fees,  expenses and other amounts owing in respect of, this  Management  Note is
made, this Management Note shall be cancelled. Any partial prepayment (including
by reason of setoff)  shall be applied  first to unpaid fees and expenses  owing
hereunder,  second to accrued and unpaid interest hereon and third to the unpaid
principal hereof.

         If at any time, or from time to time, on or after the date hereof,  the
Management Investor or any of the Management  Investor's  Permitted  Transferees
shall receive or shall otherwise become entitled to receive from the Company any
cash  payments,  cash  dividends or other cash  distributions  in respect of the
Shares,  then,  and  in  each  case,  the  Management  Investor  and  any of the
Management Investor's Permitted Transferees shall, upon the receipt thereof, pay
to the Company an amount equal to the amount of each such  payment,  dividend or
other  cash  distribution  less an amount of cash  equal to the  product of such
payment,  dividend or other cash distribution multiplied by the maximum marginal
combined  United  States  federal,  state and local tax rate  applicable  to the
Management Investor,  and the Company shall apply such amount so received to the
prepayment  of fees and  expenses  owing under,  accrued  interest on and unpaid
principal of this Management Note in the manner set forth in the first paragraph
of this Section 1, and the Company  shall not be obligated to make any such cash
payment,  cash dividend or other cash distribution not theretofore made to which
the  Management  Investor  or  any  of  the  Management   Investor's   Permitted
Transferees  are otherwise  entitled in respect of their Shares and may, in lieu
thereof,  set off the amount of such cash  payment,  cash dividend or other cash
distribution  against  the  accrued  interest  on and unpaid  principal  of this
Management  Note in the manner set forth in the third  paragraph of this Section
1.

         In addition to the foregoing,  if the Management  Investor's Consulting
Agreement  is  terminated  for  "cause"  (as  defined  therein)  all  principal,
interest,  fees,  expenses  and  other  amounts  then  owing  pursuant  to  this
Management  Note shall  become due and  payable  immediately,  and  without  any
required  demand,  notice or action on the part of the Company or the holders of
this Management Note.

         SECTION 2. PAYMENT AND  PREPAYMENT.  All payments  and  prepayments  of
principal of and interest on this  Management  Note shall be made to the Company
or its order,  or to the legal holder of this  Management  Note or such holder's
order, in lawful money of the United States of America at the principal  offices
of the  Company (or at such other place as the holder  hereof  shall  notify the
Management  Investor in writing).  The  Management  Investor may, at its option,
prepay this Management Note in whole or in part at any time or from time to time
without  penalty or premium.  Any  prepayments  of any portion of the  principal
amount of this  Management  Note shall be  accompanied by payment of all accrued
but unpaid interest hereunder.  Upon final payment of principal of, interest on,
and all fees,  expenses and other amounts  owing in respect of, this  Management
Note, it shall be surrendered for cancellation.

         SECTION  3.  EVENTS  OF  DEFAULT.  Upon  the  occurrence  of any of the
following events ("Events

                                      -3-
<PAGE>

of Default"):

         (a)      failure  to  pay  any  principal  of  this  Management   Note,
                  including  any  prepayments  required  hereunder  or under the
                  Stock Pledge Agreement, when due;

         (b)      failure  to  pay  any   interest   due   (including   required
                  prepayments)  under this  Management Note and the Stock Pledge
                  Agreement, when due;

         (c)      failure  of  the   Management   Investor  or  the   Management
                  Investor's  Permitted  Transferees to perform such  Management
                  Investor's or the Management Investor's Permitted Transferees'
                  obligations under the Stock Pledge Agreement that shall remain
                  unremedied  for  fifteen  (15)  days  following  the date when
                  notice  of  such  failure  is  delivered  to  the   Management
                  Investor;

         (d)      the  failure  of  the  Management   Investor  to  perform  his
                  obligations   under  the  Separation   Agreement   and/or  the
                  Consulting Agreement, or the material breach of the Separation
                  Agreement  and/or the  Consulting  Agreement  which failure or
                  breach  remains  unremedied  for the  applicable  cure periods
                  provided for therein;

         (e)      the Management Investor's commencing a voluntary case or other
                  proceeding seeking liquidation, reorganization or other relief
                  with  respect  to him  or  his  debts  under  any  bankruptcy,
                  insolvency  or other similar law now or hereafter in effect or
                  seeking the  appointment of a trustee,  receiver,  liquidator,
                  custodian or other similar official of the Management Investor
                  or any substantial part of his property,  or consenting to any
                  such relief or to the  appointment of or taking  possession by
                  any such official in an involuntary  case or other  proceeding
                  commenced against him, or making a general  assignment for the
                  benefit of creditors, or failing generally to pay his debts as
                  they become due, or taking any action to authorize  any of the
                  foregoing; or

         (f)      commencement  of  an  involuntary  case  or  other  proceeding
                  against   the   Management   Investor   seeking   liquidation,
                  reorganization or other relief with respect to him or his debt
                  under any  bankruptcy,  insolvency or other similar law now or
                  hereafter in effect or seeking the  appointment  of a trustee,
                  receiver,  liquidator,  custodian or other similar official of
                  the  Management  Investor  or  any  substantial  part  of  his
                  property,  and  such  involuntary  case  or  other  proceeding
                  remaining  undismissed and unstayed for a period of sixty (60)
                  days;  or any order  for  relief  being  entered  against  the
                  Management  Investor under the federal  bankruptcy laws as now
                  or hereafter in effect;

         then,  and in any such event,  the holder of this  Management  Note may
declare,  by notice of  default  given to the  Management  Investor,  the entire
principal  amount  of this  Management  Note to be  forthwith  due and  payable,
whereupon the entire  principal  amount of this Management Note  outstanding and
any accrued and unpaid  interest  hereunder shall become due and payable without
presentment,  demand,  protest,  notice of  dishonor  and all other  demands and
notices  of any  kind,  all of which  are  hereby  expressly  waived;  provided,
however,  that in the case of any Event of Default  specified  in clauses (d) or
(e) above,  without any notice to the Management  Investor the entire  principal
amount of this Management Note and any accrued and unpaid interest thereon shall
become immediately due and payable without

                                      -4-
<PAGE>

presentment,  demand,  protest,  notice of  dishonor  and all other  demands and
notices  of any  kind,  all of  which  are  hereby  expressly  waived.  Upon the
occurrence  of an Event of Default,  the accrued and unpaid  interest  hereunder
shall  thereafter bear the same rate of interest as on the principal  hereunder,
but in no event shall  interest  be charged  that would  violate any  applicable
usury law. If an Event of Default shall occur hereunder, the Management Investor
shall,  subject to Section 4 hereof,  pay the costs and expenses of  collection,
including reasonable  attorneys' fees, incurred by the holder in the enforcement
hereof  and the  enforcement  of the rights  and  remedies  granted by the Stock
Pledge Agreement.

         No  delay or  failure  by the  holder  of this  Management  Note in the
exercise of any right or remedy shall constitute a waiver thereof, and no single
or partial  exercise by the holder hereof of any right or remedy shall  preclude
any other or future  exercise  thereof  or the  exercise  of any other  right or
remedy.

         SECTION  4.  FULL  RECOURSE.   In  addition  to  recourse  against  the
Collateral  (as such term is defined in the Stock Pledge  Agreement) as provided
in the Stock Pledge  Agreement,  recourse for the payment of the principal of or
interest  on this  Management  Note or for any  claim  based  hereon  (including
without limitation,  any fees, expenses, costs of collection or other amounts of
whatever nature) shall be had against the Management Investor,  his heirs, legal
representatives  or  assigns,  directly  or  indirectly,  by way of  set-off  or
otherwise; all such liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly acknowledged and affirmed.

         SECTION 5.  MISCELLANEOUS.

         (a) The  provisions  of this  Management  Note shall be governed by and
construed in accordance  with the laws of the State of New York,  without regard
to the principles of conflicts of law thereof.

         (b) All notices and other communications  hereunder shall be in writing
and will be deemed to have been duly given if delivered or mailed in  accordance
with the Stock and Option Agreement.

         (c) The headings  contained in this  Management  Note are for reference
purposes only and shall not affect in any way the meaning or  interpretation  of
the provisions hereof.

         (d) References in this Management Note to the Company shall include any
successor to the Company and/or any subsequent  holder of this Management  Note,
as appropriate.

                                      -5-
<PAGE>

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
date first above written.

                                                  AMSCAN HOLDINGS, INC.

                                                  By: /s/ JAMES M. HARRISON
                                                     --------------------------
                                                     Name:
                                                     Title:

                                                  MANAGEMENT INVESTOR

                                                  By: /s/ WILLIAM S. WILKEY
                                                     --------------------------
                                                     Name:
                                                     Title:

WITNESS:

--------------------------
Name:
Address:

                                      -6-
<PAGE>

<TABLE>
<CAPTION>

                                   Schedule 1

                         Principal
     Date of             Amount of            Amount of            Date of              Notation
    Borrowing            Borrowing            Repayment           Repayment             Made By
-----------------    -----------------    ----------------    ------------------    -----------------
<S>                    <C>
Dec. 19, 1997          $  500,000.00

</TABLE>

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