Loan Agreement - American Greetings Corp. and Edward Fruchtenbaum
LOAN AGREEMENT
This Loan Agreement is executed this 1st day of March, 1990, by and
between American Greetings Corporation (AGC) and Edward Fruchtenbaum
(Fruchtenbaum).
In consideration for the attached signed promissory note, AGC hereby
loans Fruchtenbaum $200,000.00, receipt of which Fruchtenbaum hereby
acknowledges. At the end of each fiscal year commencing February 28, 1991, AGC
agrees to forgive $20,000.00 of principal. Beginning February 28, 1991, and on
each February 28th thereafter until February 28; 2001, Fruchtenbaum shall pay
simple interest of 10% per annum based on the principal balance at the
beginning of each fiscal year plus accrued unpaid interest.
AGC agrees to forgive the entire remaining principal balance plus
accrued interest if and when Fruchtenbaum dies, becomes totally disabled, is
terminated by AGC, is terminated as a result of a change in control of AGC, or
retires or terminates his employment as mutually agreed to by AGC and
Fruchtenbaum.
Fruchtenbaum will report the forgiveness of principal hereunder on his
individual tax returns.
This loan shall be unsecured.
American Greetings Corporation
By: /s/ Irving I. Stone /s/ Edward Fruchtenbaum
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Edward Fruchtenbaum
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ANNUAL PAYMENTS
Period Principal Principal Payment/ Interest Interest
(Fiscal Year) At Beginning At End Forgive Rate Expense
------------- ------------ ------ ------- ---- -------
Year 1 200,000 180,000 20,000 10.00% 20,000
Year 2 180,000 160,000 20,000 10.00% 18,000
Year 3 160,000 140,000 20,000 10.00% 16,000
Year 4 140,000 120,000 20,000 10.00% 14,000
Year 5 120,000 100,000 20,000 10.00% 12,000
Year 6 100,000 80,000 20,000 10.00% 10,000
Year 7 80,000 60,000 20,000 10.00% 8,000
Year 8 60,000 40,000 20,000 10.00% 6,000
Year 9 40,000 20,000 20,000 10.00% 4,000
Year 10 20,000 0 20,000 10.00% 2,000
110,000
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PROMISSORY NOTE
March 1, 1990
Cleveland, Ohio
On terminating my employment with American Greetings Corporation (AGC)
without AGC's written consent, for value received, I promise to pay to the
order of AGC within two business days of such termination the beginning
principal balance set forth in the attached schedule for the fiscal year of my
termination at 10500 American Road, Cleveland, Ohio, with accrued unpaid
simple interest at the rate of 10% per annum on the beginning principal
balance for each fiscal year as set forth in attached schedule.
/s/ Edward Fruchtenbaum
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Edward Fruchtenbaum