Document:

Amendment No. 3 to Credit Agreement, dated January 31, 2006

 Exhibit 10(iv) 
  

 AMENDMENT NO. 3 
 TO 
 CREDIT AGREEMENT 
 among 
 AMERICAN GREETINGS CORPORATION, 
 as a Borrower, 
 THE LENDING
INSTITUTIONS NAMED HEREIN, 
 as Lenders, 
 and 
 NATIONAL CITY BANK, 
 as the Global Agent and the Collateral Agent 
  

 dated as of January 31, 2006 
  

  

 This AMENDMENT NO. 3 TO CREDIT AGREEMENT (this “Amendment”) is entered into as of
January 31, 2006, by and among the following: (i) AMERICAN GREETINGS CORPORATION, an Ohio corporation (the “Company”); (ii) the Lenders, as defined in the Credit Agreement referred to below; and (iii) NATIONAL
CITY BANK, as Global Agent and as Collateral Agent, each as defined in the Credit Agreement. 
 RECITALS: 
 A. The Company, the Foreign Subsidiary Borrowers from time to time party to the Credit Agreement, the Global Agent, the Collateral Agent, the Lenders,
KEYBANK NATIONAL ASSOCIATION, as Syndication Agent, and LASALLE BANK NATIONAL ASSOCIATION, as Documentation Agent, are parties to an Amended and Restated Credit Agreement dated as of May 11, 2004 (as amended and as the same may from time to
time be further amended, restated or otherwise modified, the “Credit Agreement”). 
 B. The Company has requested that the
Global Agent, the Collateral Agent, and the Lenders agree to amend certain provisions of the Credit Agreement, as set forth herein. 
 C. The
Global Agent, the Collateral Agent, and the Lenders are willing to agree to such amendments pursuant to the terms and subject to the conditions set forth herein. 
 AGREEMENT: 
 In consideration of the premises and mutual covenants herein and for other valuable
consideration, the Company, the Global Agent, the Collateral Agent and the Lenders agree as follows: 
 Section 1. Amendments.

 1.1 Amendment to Restricted Payments Covenant. 
 (a) Section 7.06(d)(iii) of the Credit Agreement is hereby amended by deleting it in its entirety and replacing it with the
following: 
 “(d)(iii) the aggregate amount of all Share Repurchases made by the Company during the term of this
Agreement shall not exceed the sum of $400,000,000 plus the Maximum Share Repurchase Amount (as defined in Schedule 2 hereto); and” 
 Section 2. Effectiveness. 
 2.1 Conditions Precedent. The amendments set forth above shall
become effective as of the date first written above (the “Amendment Effective Date”) if on or before such date the following conditions have been satisfied: 
 (i) this Amendment shall have been executed by the Company, the Global Agent, the Collateral Agent and the Required Lenders, and
counterparts hereof as so executed shall have been delivered to the Global Agent; 
 (ii) the Company shall have caused each
Subsidiary Guarantor to consent and agree to and acknowledge the terms of this Amendment; and 

 (iii) the Company shall have provided such other items and shall have satisfied such
other conditions as may be reasonably required by the Global Agent. 
 2.2 Amendment Effective Date. The Global Agent shall provide the
Company and the Lenders written notice immediately upon the occurrence of the Amendment Effective Date. Unless otherwise specifically set forth herein, each of the amendments and other modifications set forth in this Amendment shall be effective on
and after the Amendment Effective Date. 
 Section 3. Miscellaneous. 
 3.1 Representations and Warranties. The Company, by signing below, hereby represents and warrants to the Global Agent, the Collateral Agent, and
the Lenders that: 
 (i) the Company has the legal power and authority to execute and deliver this Amendment; 
 (ii) the officers executing this Amendment on behalf of the Company have been duly authorized to execute and deliver the same and bind the
Company with respect to the provisions hereof; 
 (iii) the execution and delivery hereof by the Company and the performance
and observance by the Company of the provisions hereof do not violate or conflict with the Organizational Documents of the Company or any law applicable to the Company or result in a breach of any provision of or constitute a default under any other
agreement, instrument or document binding upon or enforceable against the Company; 
 (iv) no Default or Event of Default
exists under the Credit Agreement, nor will any occur immediately after the execution and delivery of this Amendment or by the performance or observance of any provision hereof; 
 (v) upon the execution and delivery of this Amendment by the Company, this Amendment shall constitute a valid and binding obligation of
the Company in every respect, enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditors’ rights or
by general principles of equity limiting the availability of equitable remedies; and 
 (vi) each of the representations and
warranties set forth in Article V of the Credit Agreement is true and correct in all material respects as of the date hereof, except to the extent that any thereof expressly relate to an earlier date. 
 3.2 Waiver of Claims. The Company hereby waives and releases the Global Agent, the Collateral Agent, and each of the Lenders and their respective
directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of which any of the undersigned is aware arising out of or relating to the Credit Agreement and the other Loan
Documents, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto. 
 3.3 Expenses. As provided in the Credit Agreement, but without limiting any terms or provisions thereof, the Company agrees to pay on demand all
reasonable costs and expenses incurred by the Global Agent in connection with the preparation, negotiation, and execution of this Amendment, 

 including without limitation the reasonable costs and fees of the Global Agent’s special legal counsel, regardless
of whether this Amendment becomes effective in accordance with the terms hereof, and all costs and expenses incurred by the Global Agent, the Collateral Agent or any Lender in connection with the enforcement or preservation of any rights under the
Credit Agreement, as amended hereby. 
 3.4 Credit Agreement Unaffected. Each reference to the Credit Agreement herein or in any other
Loan Document shall hereafter be construed as a reference to the Credit Agreement as amended hereby. Except as herein otherwise specifically provided, all provisions of the Credit Agreement shall remain in full force and effect and be unaffected
hereby. This Amendment is a Loan Document. 
 3.5 Entire Agreement. This Amendment, together with the Credit Agreement and the other
Loan Documents, integrates all the terms and conditions mentioned herein or incidental hereto and supersedes all oral representations and negotiations and prior writings with respect to the subject matter hereof. 
 3.6 Counterparts. This Amendment may be executed in any number of counterparts, by different parties hereto in separate counterparts and by
facsimile signature, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. 
 3.7 Governing Law. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF OHIO WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH CREDIT PARTY HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT
THAT THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF OHIO GOVERNS THIS AMENDMENT OR ANY OF THE OTHER LOAN DOCUMENTS. 
 3.8 JURY
TRIAL WAIVER. EACH OF THE PARTIES TO THIS AMENDMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY OF THE OTHER LOAN DOCUMENTS
(INCLUDING, WITHOUT LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS RELATING TO ANY OF THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 
 [Signature pages follow.] 

 IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the date first above
written. 
  

			
	AMERICAN GREETINGS CORPORATION
		
	By:	 	 /s/ Stephen J. Smith

	Name:	 	Stephen J. Smith
	Title:	 	VP, Treasurer and Investor Relations
	
	NATIONAL CITY BANK,
	 as the Global Agent, the Collateral Agent, the Swing
     Line Lender, a LC Issuer, and a Lender

		
	By:	 	 /s/ Robert S. Coleman

	Name:	 	Robert S. Coleman
	Title:	 	Senior Vice President

 Signature Page 
 to 
 Amendment No. 3 to Credit Agreement, 
 dated as of January 31, 2006, 
 by and among American Greetings Corporation, as a
Borrower, 
 National City Bank, as the Global Agent and the Collateral Agent, and 
 the Lenders party thereto 
  

					
	Name of Institution:  	 	 National City Bank, Canada Branch

			
		 	By:	 	 /s/ C.M. Stoole /s/ G.W. Hines

		 	Name:	 	 C. Stoole / G.W. Hines

		 	Title:	 	 VP / SVP

 Signature Page 
 to 
 Amendment No. 3 to Credit Agreement, 
 dated as of January 31, 2006, 
 by and among American Greetings Corporation, as a
Borrower, 
 National City Bank, as the Global Agent and the Collateral Agent, and 
 the Lenders party thereto 
  

					
	Name of Institution:  	 	KeyBank National Association
			
		 	By:	 	 /s/ Marianne T. Meil

		 	Name:	 	Marianne T. Meil
		 	Title:	 	Vice President

 Signature Page 
 to 
 Amendment No. 3 to Credit Agreement, 
 dated as of January 31, 2006 
 by and among American Greetings Corporation, as a
Borrower, 
 National City Bank, as the Global Agent and the Collateral Agent, and 
 the Lenders party thereto 
  

					
	Name of Institution:  	 	LaSalle Bank National Association
			
		 	By:	 	 /s/ Brian H. Gallagher

		 	Name:	 	Brian H. Gallagher
		 	Title:	 	Vice President

 Signature Page 
 to 
 Amendment No. 3 to Credit Agreement, 
 dated as of January 31, 2006 
 by and among American Greetings Corporation, as a
Borrower, 
 National City Bank, as the Global Agent and the Collateral Agent, and 
 the Lenders party thereto 
  

					
	Name of Institution:  	 	PNC Bank, National Association
			
		 	By:	 	 /s/ Joseph G. Moran

		 	Name:	 	Joseph G. Moran
		 	Title:	 	Managing Director

 Signature Page 
 to 
 Amendment No. 3 to Credit Agreement, 
 dated as of January 31, 2006 
 by and among American Greetings Corporation, as a
Borrower, 
 National City Bank, as the Global Agent and the Collateral Agent, and 
 the Lenders party thereto 
  

					
	Name of Institution:  	 	JPMorgan Chase Bank, N.A.
			
		 	By:	 	 /s/ Jason A. Rastovski

		 	Name:	 	Jason A. Rastovski
		 	Title:	 	Vice President

 Signature Page 
 to 
 Amendment No. 3 to Credit Agreement, 
 dated as of January 31, 2006, 
 by and among American Greetings Corporation, as a
Borrower, 
 National City Bank, as the Global Agent and the Collateral Agent, and 
 the Lenders party thereto 
  

					
	Name of Institution:  	 	The Bank of New York
			
		 	By:	 	 /s/ Kenneth R. McDonnell

		 	Name:	 	Kenneth R. McDonnell
		 	Title:	 	Vice President

 Signature Page 
 to 
 Amendment No. 3 to Credit Agreement, 
 dated as of January 31, 2006, 
 by and among American Greetings Corporation, as a
Borrower, 
 National City Bank, as the Global Agent and the Collateral Agent, and 
 the Lenders party thereto 
  

					
	Name of Institution:  	 	The Bank of Nova Scotia
			
		 	By:	 	 /s/ V. Gibson

		 	Name:	 	V. Gibson
		 	Title:	 	Assistant Agent

 Signature Page 
 to 
 Amendment No. 3 to Credit Agreement, 
 dated as of January 31, 2006, 
 by and among American Greetings Corporation, as a
Borrower, 
 National City Bank, as the Global Agent and the Collateral Agent, and 
 the Lenders party thereto 
  

					
	Name of Institution:  	 	The Northern Trust Company
			
		 	By:	 	 /s/ Jeffrey P. Sullivan

		 	Name:	 	Jeffrey P. Sullivan
		 	Title:	 	Vice President

 Signature Page 
 to 
 Amendment No. 3 to Credit Agreement, 
 dated as of January 31, 2006, 
 by and among American Greetings Corporation, as a
Borrower, 
 National City Bank, as the Global Agent and the Collateral Agent, and 
 the Lenders party thereto 
  

					
	Name of Institution:  	 	Barclays Bank PLC
			
		 	By:	 	 /s/ Vincent J. Muldoon

		 	Name:	 	/s/ Vincent J. Muldoon
		 	Title:	 	Director – North America

 GUARANTOR ACKNOWLEDGMENT AND AGREEMENT 
 Each of the undersigned consents and agrees to and acknowledges the terms of the foregoing Amendment No. 3 to Credit Agreement, dated as of
January 31, 2006 (the “Amendment”). Each of the undersigned further agrees that the obligations of each of the undersigned pursuant to the Subsidiary Guaranty executed by each of the undersigned shall remain in full force and
effect and be unaffected hereby. Unless otherwise defined herein, each capitalized term used in this Amendment and not defined herein shall have such meaning ascribed to it in the Credit Agreement (as defined in the Amendment). 
 Each of the undersigned, by signing below, hereby waives and releases the Global Agent, the Collateral Agent, and each of the Lenders and their
respective directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of which any of the undersigned is aware arising out of or relating to the Subsidiary Guaranty and the
other Loan Documents, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto. 
 EACH OF THE UNDERSIGNED HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THE AMENDMENT, THIS GUARANTOR ACKNOWLEDGMENT AND AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS (INCLUDING, WITHOUT LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS RELATING TO ANY OF THE FOREGOING), OR THE TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY. 
 IN WITNESS WHEREOF, each of the undersigned has executed this Guarantor Acknowledgment and Agreement as of
January 31, 2006. 
  

			
	 AGCM, INC.
 AG.COM, INC.

		
	By:	 	 /s/ Stephen J. Smith

		 	Stephen J. Smith, Assistant Treasurer
		 	of each of the foregoing Subsidiary Guarantors
	
	AGC HOLDINGS, INC.
		
	By:	 	 /s/ Stephen J. Smith

		 	Stephen J. Smith, Vice President

			
	 AGC, INC.
 A.G.C. INVESTMENTS,
INC.
 A.G. EUROPE, INC.
 A.G. (UK), INC.
 A.G. INDUSTRIES, INC.
 BALLOON ZONE DISTRIBUTION, INC.
 CARLTON CARDS RETAIL, INC.
 CARLTON (U.K.) RETAIL, INC.
 CREATACARD, INC.
 CREATACARD
INTERNATIONAL LEASING, INC.
 CUSTOM HOLDINGS, INC.
 GIBSON
GREETINGS, INC.
 GIBSON GREETINGS INTERNATIONAL LIMITED
 JOHN SANDS (AUSTRALIA) LTD.
 JOHN SANDS (N.Z.) LTD.
 JOHN SANDS HOLDING CORPORATION
 LEARNING HORIZONS, INC.
 MEMPHIS PROPERTY CORPORATION
 PLUS MARK, INC.
 QUALITY GREETING CARD
     DISTRIBUTING COMPANY, INC.
 SUPERVEND, INC.
 THOSE CHARACTERS FROM
     CLEVELAND, INC.

		
	By:	 	 /s/ Stephen J. Smith

		
		 	Stephen J. Smith, Treasurer of each of the foregoing Subsidiary GuarantorsForm of Employment Contract with Specified Officers

 Exhibit 10(x) 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT made at Cleveland, Ohio, this
             day of                     ,
            , by and between AMERICAN GREETINGS CORPORATION, an Ohio corporation (herein called the “Corporation”) and
                                        
(herein called “Employee”). 
 In consideration of the covenants hereinafter set forth, the parties hereto mutually agree as
follows: 
  

	 	1.	Subject to the provisions hereof, the Corporation shall employ Employee as on officer of the Corporation, either elected by the Board of Directors or appointed by the Executive
Committee, or as an officer of a subsidiary company with such duties and responsibilities as may be assigned to him from time to time by the Board of Directors or the Executive Committee of the Board of Directors of the Corporation and Employee
shall devote his full business time and attention and give his best efforts to the business affairs of the Corporation and/or of such of its subsidiaries as the Board of Directors or the Executive Committee of the Board of Directors of the
Corporation may from time to time determine. Employee recognizes that in serving as an officer of the Corporation or as an officer of a subsidiary he serves in such capacity solely at the pleasure of the Board of Directors or the Executive Committee
of the Board of Directors of the Corporation and that his employment in such capacity or in any other capacity may be terminated at any time by the Board of Directors or the Executive Committee of the Corporation. 

  

	 	2.	The Corporation or a subsidiary shall, during the term of this Employment Agreement, pay to Employee as minimum compensation for his services a base salary at a rate to be fixed by
the Board of Directors or the Executive Committee or the Chairman of the Executive Committee, which rate shall not be less than $             per year, plus such additional
compensation as the Board of Directors or the Chairman of the Executive Committee or the Executive Committee of the Board of Directors of the Corporation may from time to time determine. 

  

	 	3.	Employee covenants and agrees that in consideration of his employment as an officer of the Corporation or as an officer of a subsidiary he shall not for a period of twelve months
after leaving the employ of the Corporation or a subsidiary, regardless of the reason for such leaving, enter into the employment, directly or indirectly or in a consulting or free lance capacity, of any person, firm or corporation in the United
States or Canada, which at such date of leaving the employ of the Corporation or a subsidiary shall be manufacturing or selling products that are substantially similar in nature to the products being then manufactured or sold by the Corporation or
the subsidiary. 

	 	4.	In the event that the employment of Employee under this Employment Agreement is terminated by the Corporation or a subsidiary, the Corporation covenants and agrees that it shall pay
or cause to be paid to Employee a continuing salary at a rate which shall be the highest base salary rate paid Employee during the preceding six-month period for a period of time equivalent to one-half month for each year of employment by the
Corporation or a subsidiary of the Employee, but in no event to be less than a period of three months nor greater than a period of twelve months. The provisions of this paragraph shall not be applicable if the Employee is terminated because of a
gross violation of his obligations to the Corporation. 

  

	 	5.	In the event that Employee shall cease to be employed as an officer of the Corporation or a subsidiary but shall continue in the employ of the Corporation or a subsidiary, then this
Employment Agreement shall terminate twelve months after the date that Employee ceases to be employed as an officer of the Corporation or a subsidiary. 

  

	 	6.	I agree that during the period of my employment and thereafter, I will keep confidential and will not disclose any information, records, documents or trade secrets of the
corporation acquired by me during my employment, and except as required by my employment, will not remove from the Corporation’s premises any record or other document relating to the business of the Corporation; or make copies thereof; it being
recognized by me that such information is the property of the Corporation. 

  

	 	7.	This Agreement shall be applied and interpreted under the laws of the State of Ohio. 

  

			
	AMERICAN GREETINGS CORPORATION
		
	By:	 	 /s/ Morry Weiss

		
		 	  
 Employee

 OFFICERS 
 Joseph B. Cipollone 
 Josef Mandelbaum 
 William R. Mason 
 Brian McGrath 
 Douglas W. Rommel 
 Stephen J. Smith 
 Erwin Weiss

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