EX-10.XXVIII Key Management Annual Incentive Plan 2005

Exhibit 10(xxviii)

American Greetings

     Fiscal Year 2006

Table of Contents

American Greetings Key Management Annual Incentive Plan

This brochure provides an overview of the Key Management Annual Incentive Plan ¾ a valuable component of your total compensation package. It contains details about how the Plan rewards for Corporate, Business Unit and Individual performance results. In addition, your Incentive Compensation Statement ¾ provided separately ¾ includes information specific to your participation in the plan: your assigned business unit, your target incentive percentage, and detailed examples of the incentive calculation under different performance scenarios. Together, these documents provide the information you need to understand the Plan so you can maximize your annual incentive award.

Eligibility

You are eligible to participate in the Key Management Annual Incentive Plan if you are a Key Manager or Officer in one of the following business units and you do not participate in another Company-sponsored annual incentive plan:

Key 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 & Chief Operating Officer, Chief Executive Officer, Chairman of the Board and any other job level(s) that may be designated.

How the Plan Works

The Key Management Annual Incentive Plan rewards participants for their contributions to American Greetings success over a twelve-month fiscal year. The Plan rewards for successful results in three key performance areas:

At the end of each fiscal year, incentive amounts are determined based on performance in these three areas and are added together to determine your total Key Management Annual Incentive Plan award.

The total award ¾ which is paid in cash ¾ can range from 0% to 200% of your individual target incentive. This provides significant incentive earnings opportunity when performance in one or more of these performance areas exceeds expectations.

Let’s take a look at the components of the Plan and how they work.

Your Individual Target Incentive

At the beginning of each fiscal year, an individual target incentive is established for you based on your job level. This target incentive is typically communicated as a percentage of your base earnings but may also be expressed as a dollar amount, determined by multiplying your base earnings by your target incentive percentage as follows:

The target incentive represents what you would earn if each performance measure in this incentive plan (Corporate, Business Unit, and Individual) were achieved at 100% of goal and you met all individual performance expectations (i.e., all components achieve their target performance).

Weighting the Measures

Performance measures are weighted by job level to reflect the degree to which positions within a job level can affect performance in each of the three performance measurement areas. Accordingly, associates at higher job levels ¾ who have more impact on the achievement of corporate objectives ¾ have more weight assigned to the corporate performance measure. Lower job levels, in contrast, have more weight assigned to the individual performance measure.

The following chart shows the specific weightings for each job level for fiscal year 2006.

Measuring Performance

At the beginning of each fiscal year, the American Greetings Board of Directors approves the corporate earnings per share (EPS) goal for the coming year. This goal provides the context within which each business unit then sets its earnings goal.

Corporate and business unit actual earnings performance is determined at the end of the fiscal year and expressed as a percentage of the earnings goal. In contrast, individual results are evaluated by your manager and communicated as an individual performance rating. If the corporation’s or your business unit’s results exceed or fall below the earnings goal, Plan payouts are adjusted.

As described above, there is a precise relationship between actual earnings results and the corresponding incentive award. As performance rises or falls, so does your incentive award. But how much your award changes as performance varies is determined by something called a performance multiplier which is discussed in the following section.

Performance Multipliers

The performance multiplier is used to calculate the corporate and business unit incentive awards when performance is above or below goal, provided the performance thresholds have been achieved.

Corporate and business unit performance incrementally increase your incentive award for performance above goal. They also incrementally decrease your incentive award for performance below goal.

For example, a multiplier of 4 means that for every 1% increase or decrease in the percentage of goal achieved there is a corresponding 4% increase or decrease in the percentage of target incentive earned.

The formula below illustrates the role of the performance multiplier in determining the adjustment that is made to your incentive target based on actual performance achieved.

Important Note: Business unit performance multipliers vary by business unit. The multiplier assigned to your business unit is provided in your fiscal year 2006 Incentive Plan Statement. A list of all business unit multipliers is provided in the Definition of Terms section of this document.

Performance Measures

Corporate Performance

Corporate performance is based on fiscal year-end corporate earnings per share compared to goal. Minimum performance of 90% of goal must be attained before any incentive is earned. From that point onward, incentive awards are determined using a performance multiplier of 4 as illustrated in the example below.

Business Unit Performance

Business unit performance measures vary by business unit, but your measure will be one of the following:

Earnings are charged/credited for any variation from plan in Net Capital Employed at the weighted average cost of capital. Performance is based on fiscal year-end earnings compared to goal. Minimum performance of 90% of goal must be attained before any incentive is earned.

A listing of each business unit’s assigned earnings measure and performance multipliers are presented in the Business Unit table at the end of this brochure as well as in your Incentive Plan Statement, which is provided separately. An example of the calculation of this incentive follows.

Individual Performance

At the end of the fiscal year, managers assess each participant’s performance compared to other participants within the business unit. Managers determine the degree to which the participants achieve the goals and job expectations defined at the beginning of the year.

Managers rank participants based on their relative performance and determine the actual performance rating based on these rankings and the targeted percentage of participants for each rating. Participants who receive an “Exceeds Expectations” performance rating receive the target incentive for the individual performance measure multiplied by 150% ¾ or 200% based on manager discretion¹. Participants who receive an “Improvement Expected / Performance Below Peer Level” rating will not receive an individual performance incentive. Individuals that receive a “Meets Expectations” rating will receive 100% of their target individual incentive.

If corporate earnings performance is below threshold, only 30% of the top performing participants may receive awards for individual performance. In these instances, individual awards may not exceed 50% of the target payable for the individual performance component.

The following schedule shows how individual amounts will be adjusted based on individual performance.

Summary – Total Award Calculation

At the end of American Greetings fiscal year, corporate, business unit and individual results are evaluated and your total incentive award is calculated.

Administrative Details

If your employment status changes, your Plan participation and any payouts may be affected as described below.

Common Terms

The following provides detailed definitions of some common terms used throughout this brochure.

Nothing in this brochure should be construed to create or imply any contract of employment between an employee and American Greetings and its subsidiaries. Except as specifically provided in the Plan and subject to American Greetings right to amend or terminate the Plan, no employee, former employee or any beneficiary shall have any right to payments under the American Greetings Key Management Annual Incentive Plan.

American Greetings reserves the right to terminate or make changes to the Plan at any time without prior notice to any of the Plan’s participants. The Chief Executive Officer and Chairman are the only people who have the authority to alter or amend this Plan as it relates to any one participant. Any such alteration or amendment must be done in writing. No participant should rely on an alteration, amendment or modification to this Plan unless it is made in writing and is signed by the CEO or Chairman.

For the purposes of illustrating how the Plan works, hypothetical associates, target incentives, performance outcomes and incentive payments have been used in this brochure. The actual incentive, if any, will be based on the actual performance of American Greetings, its business units, and your individual performance.

This brochure and its contents, including your incentive plan statement, are considered to be confidential and proprietary and are for the sole use of current American Greetings employees.