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HALLMARK DEFERRED COMPENSATION PLAN2017 PLAN YEAR

SUMMARY AND HIGHLIGHTS BOOKLET

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Hallmark Cards is committed to providing you with opportunities to plan for retirement as well as for other financial objectives you may have. The Plan will help provide you with expanded tax-advantaged savings opportunities.

Internal Revenue Service (IRS) regulations limit contributions that can be made to the 401(k) Plan. The Deferred Compensation Plan is designed to supplement your 401(k) account. In addition, the Plan will allow you to defer additional compensation on a pre-tax basis for retirement, educational funds or other special life events for which you are saving.

Please carefully review and refer to your Enrollment Guide during the enrollment period: October 31 - November 11, 2016. The Enrollment Guide is your reference for where you may review fund options, consider your retirement goals and select the right mix of investments to best meet your financial objectives.

Representatives of Empower Retirement do not offer or provide investment, fiduciary, financial, legal or tax advice, or act in a fiduciary capacity, for any client unless explicitly described in writing. Please consult with your investment advisor, attorney and/or tax advisor as needed.

What’s inside• Your plan at a glance ................................................................... 3

• Deferral check list ....................................................................... 4

• The benefits of pre-tax investing ................................................... 4

• Your plan features ....................................................................... 5

• Distribution options ..................................................................... 6

• Investment crediting options ........................................................ 8

• Impact on your other retirement plans ......................................... 10

• Other important information ....................................................... 11

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Your Plan at a glanceThe Plan provides tax-advantaged savings opportunities, including:

• Pre-tax voluntary deferrals. The Plan allows you to defer up to 75% of your pre-tax base salary and up to 85% of any annual or long-term incentives for which you may be eligible. Once the election is made during open enrollment, deferral elections cannot be changed or modified.

• Company match. You may receive a restoration match equal to your savings match on deferred base salary or annual incentive.

• Tax-deferred earnings. Your account will be credited with earnings on a tax-deferred basis, which maximizes the combined benefit of pre-tax deferrals and tax-deferred growth.

• Flexible distribution options. The Plan offers flexible distribution options to help accommodate retirement and other financial goals you may have.

• In-Service Withdrawals. You may receive a penalty-free distribution from this Plan while employed/in service. You may choose the year for your distribution at the time you elect to defer your compensation.

• Range of investment options. Allocate your new deferrals and funded balances among a variety of different investment crediting options.

• Integrated retirement reporting. To facilitate your total retirement planning, Empower Retirement, our retirement savings plan administrator, also administers this Plan. You can access both accounts at www.empower-retirement.com/hallmark.

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Why participate in the Plan? • Supplement other sources of

retirement income

• Save for long- and short-term goals

• Invest on a tax-deferred basis

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Deferral Check ListThe information provided in this booklet is designed to provide a high level summary on the Deferred Compensation Plan. If you elect to participate in the Deferred Compensation Plan, you will need to make the following decisions:

• DEFERRAL AMOUNT – From which compensation type do you want to

defer (base pay, annual incentive and/or long-term incentive)?

– How much do you want to defer?

• DISTRIBUTION OPTIONS – When do you want to receive your distribution?

While still employed? Upon termination?

– If upon termination, how do you want to receive the distribution? As a lump sum or installments?

• INVESTMENT OPTIONS – How do you want the money to be invested?

• BENEFICIARY DESIGNATION – Who are your beneficiaries in the event of

your death?

The Empower website will walk you through these enrollment steps.

The benefits of pre-tax investing — Why defer?You may be currently saving for specific goals and/or retirement on an after-tax basis. The Hallmark Cards Deferred Compensation Plan provides participants a convenient, tax-deferred way to save on a pre-tax basis. At higher levels of compensation, the income that can be obtained from qualified plans (such as the profit sharing and savings plans) and social security may not be sufficient to provide adequate replacement income in retirement. The Deferred Compensation Plan allows flexibility to save at higher levels than is permitted

with the qualified plans and even allows for access to dollars while still employed. With the Deferred Compensation Plan, the dollars saved have not yet been taxed, allowing the full amount of your contributions to compound. For many, this alternative provides a very attractive and efficient method for savings.

The benefits of tax-deferred investment returnsBecause investment earnings on your account are tax-deferred (i.e. you only pay income tax when you receive a distribution from your account), deferrals made on a pre-tax basis accumulate faster than they would if made on an after-tax basis.

Let’s assume:• A 45-year-old executive defers 8% of his/her $150,000 compensation ($12,000) annually into the Plan until retirement at age 65, versus deferring $8,160 (the same amount in after-tax dollars) into a personal investment account.

• A 6% investment return.

• A personal income tax rate of 32% pre-retirement; a personal income tax rate of 25% during retirement (federal and state) when income is generally reduced.

• The personal investment alternative assumes a 26% blended tax rate on investment gains.

• The assumptions are for illustrative purposes only and are not representative of the performance of any security. There is no assurance similar results can be achieved, and this information should not be relied upon as a specific recommendation or an offer to buy or sell securities.

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The chart below illustrates the benefit of deferring your compensation on a pre-tax basis versus investing the same amount after-tax.

Personal Investment Alternative Deferred Compensation Plan

8% Compensation Deferred $12,000 $12,000

Current Income Tax at 32% $3,840 $0

Net Amount to Invest $8,160 $12,000

The chart below compares the results of investing pre-tax and after-tax dollars.

Plan Year

After-Tax Personal Investment Alternative Account Balance

Pre-Tax Deferred Compensation Plan Account Balance

1 $8,522 $12,720

2 $17,423 $26,203

3 $26,719 $40,495

4 $36,428 $55,645

5 $46,567 $71,704

10 $104,432 $167,660

20 $265,683 $467,913

After-Tax Annual Retirement Benefit at Age 65, Payable for 5 Years

Annual Benefit $57,851 $78,595

Total Benefit $289,253 $392,975

Your Plan featuresThis section provides an overview of the Plan provisions. For more detailed information regarding the Plan, please contact a customer services representative.

The following rules apply to 2005 and later plan year balances. For information on the termination distribution election and change process for pre-2005 plan year balances, please refer to the document titled, “Summary & Comparison of Changes to Your Deferred Compensation Plan,” which can also be found on the Empower website at www.empower-retirement.com/hallmark.

Participating in the Deferred Compensation PlanEach year, eligible employees will be notified of an open enrollment period and will be sent a link to online

informational materials. During the open enrollment period, you will have the opportunity to make an election to participate in the Deferred Compensation Plan for the following plan year. At the time you make the election to defer, you will also need to elect how and when you want the money distributed to you and how the money will be invested.

Your allowable deferral amountsThe Deferred Compensation Plan allows you to defer up to 75% of base salary, and up to 85% of your annual incentive or long term incentive to help you accumulate savings for retirement and future income needs. The actual pay you receive in cash must be sufficient to cover your required monthly deductions (for example, FICA tax). If necessary, the deferral percent will be reduced in order to cover these obligations.

The election to defer compensation must be made each year. After the end of the open enrollment period, deferral elections cannot be changed or modified.

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Distribution OptionsEach year, you must make an election as to how and when you want to receive that Plan year’s deferral balance:

· In a future year while you are still employed (as a Scheduled In-Service Withdrawal)

· After retirement/separation from service (Termination Payment)

· In the event of your death or disability

The following chart summarizes the options available to you

*2017 Plan year for Hallmark would include deferrals from any of the following sources: 2017 Base, 2017 Annual, 2017 Long-term Management Shares and 2017-2018 LTIP deferrals. For Crayola, 2017 Plan year would include deferrals from the following sources: 2017 Base, 2017 AIP and 2017 LTIP.

Options Available Payment Date

Scheduled In-Service Withdrawal For 2015 and earlier years: Lump sum and / or 2-5 annual installments*

For 2016 and later years: Lump sum only

January of year elected

Retirement / Separation from Service Lump sum and / or 5, 10, 15 or 20 annual installments*

Lump sum or first installment paid 13 months after separation date, subsequent installments in January of each year after the first installment

Death / Disability Lump sum and / or 5, 10, 15 or 20 annual installments*

Lump sum or first installment paid 13 months after separation date, subsequent installments in January of each year after the first installment

*Installments require a balance of >$25,000. If the total balance is <$25,000, the distribution will be paid in a lump sum.

A Plan year’s balance will contain base salary, annual incentive and long term incentive you elected to defer during the open enrollment period along with earnings on the balance. In making your election during open enrollment, you will want to consider how you will use the money and when you will need it. The reasons you save (retirement, a child’s education, etc.) will help you decide the type of distribution.

You can make a different distribution election for each plan year. If you terminate employment without an effective termination distribution election for a Plan year, that year’s deferral balance will be paid according to the Plan defaults (Installments over 10 years if the balance is greater than $25,000. Lump sum if the balance is less than $25,000). It is very important that you understand the dates upon which you will be receiving distributions, as this will trigger tax implications. We encourage participants to establish a standard distribution pattern in order to help with planning.

Scheduled In-Service WithdrawalUnlike a 401(k) plan, you may receive a penalty-free distribution from this Plan while employed.

To receive a penalty-free distribution of deferrals for any plan year, you must indicate this choice during the open enrollment period, which occurs before the beginning of that plan year. A Scheduled In-Service Withdrawal allows you to receive all of that specific Plan year’s balance in a lump sum as early as two years after the end of the Plan year. For instance, you may elect to receive your 2017 Plan year* balance as early as January 2020.

Note: If you choose to postpone any Scheduled In-Service Withdrawal payments elected for the 2015 or earlier plan years, you will still be able to elect partial or installment payments. If you elected installments and the plan year balance is less than $25,000, you will receive the distribution in a lump sum.

When are distributions paid? Lump sum elections are paid or installments begin in January of the year you elected, as long as you are still employed at the time of payment. If you terminate prior to or while receiving a Scheduled In-Service Withdrawal, the balance will be paid according to your retirement/separation from service election or the plan distribution rules.

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Are changes allowed? Yes, you may delay receipt of a Scheduled In-Service Withdrawal, and for 2015 and prior plan years, you may change the payment method (lump sum versus installments or vice versa). However, the new payment date must be scheduled at least five years later than the payment previously scheduled. Any change must be made at least one year in advance of the currently scheduled date.

Distribution Election Change Forms are available online at www.empower-retirement.com/hallmark:

1. Enter your Username and Password

2. Click the Plan name

3. Click “Visit Website”

4. Select “Forms and Publications” from the left-side menu

5. Click the Distribution Election Change Form link

6. Complete the form and return to Empower Retirement; return instructions are located at the bottom of the form

When are distributions paid? Lump sum elections are paid, or installments begin, 13 months following your retirement/separation from service. Future installments (if applicable) will be paid in January beginning in the year following your first installment.

Are changes allowed? No, you may not change your payment election for retirement/separation from service once the open enrollment period for that plan year has closed.

Death/DisabilityIn addition to determining whether you want your distribution while still employed or at separation from service, each year you will also have the option to decide how you want your remaining account balance paid in the event of your death/disability. If you do not make a death/disability election, the funds will be paid according to your retirement/separation from service election.

When are distributions paid? Lump sum elections are paid or installments begin 13 months following your death/disability. Future installments (if applicable) will be paid in January beginning in the year following your first installment.

Are changes allowed? No, you may not change your death/disability payment election after the close of that plan year’s open enrollment period.

Explanation of Installment CalculationIf you elected to have your account balance distributed in installments, installment amounts will be calculated as follows: The amount of each installment is equal to the value of your balance as of the second business day of the month in which the payment is to begin, divided by the number of remaining installments (including the installment being paid).

For example, if your 10-year installment period begins in January 2018, the first installment will be equal to your distributable balance on the second business day of January 2018 divided by 10; the second installment (January 2019) would be equal to your distributable balance on the second business day of January 2019 divided by 9; and so on until the 10th installment, which would equal your remaining distributable balance. As long as the earnings on your unpaid balance are positive, this will result in a larger installment every year.

Payments after Retirement/Separation from ServiceYou may choose to have some or all of each Plan year’s balance paid after your service ends. Balances that have not previously been distributed in a Scheduled In-Service Withdrawal will be paid out at separation from service. If you terminate or retire before a Scheduled In-Service Withdrawal or while you are receiving installments, the Scheduled In-Service Withdrawal will stop and the remaining balance will be paid according to the retirement/separation from service election. If you terminate employment without a termination distribution election for a Plan year, that year’s deferral balance will be paid according to the Plan defaults (Installments over 10 years if the balance is great than $25,000. Lump sum if the aggregate balance is less than $25,000).

Note: Under current law, benefits paid over a period of less than 10 years may be subject to income taxes from the state and local tax jurisdictions in which you earned the benefit, even if you do not reside in that state when receiving benefits. Please consult with your personal financial advisor if this situation is likely to pertain to you.

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Designation of BeneficiaryIn the event of your death, the beneficiaries you designate will receive your remaining account balance. You can make beneficiary elections on Empower’s website for your Hallmark profit sharing and savings plans, Excess Plan, Cash Balance Retirement (if applicable) and Deferred Compensation Plan. You may change your beneficiary at any time. If you do not have a beneficiary on file for the Deferred Compensation Plan, the remaining balance will be paid according to the Plan rules.

Hardship / Unforeseeable Emergency WithdrawalAlthough limited and rare, there are circumstances in which you might be eligible for an emergency withdrawal from your Plan balance. These situations must result from severe financial hardship—such as illness or casualty losses not covered by insurance or reasonably remedied by using other assets. If this type of situation occurs, you may apply for a hardship withdrawal. The Compensation Committee will review the application and must approve your application before funds can be distributed. Hardship withdrawals are limited to the amount of demonstrated need and the taxes to be paid. In addition to, or instead of, this distribution, the Compensation Committee may require suspension of your current deferral elections. After receiving a hardship withdrawal, you will be ineligible to defer for the remainder of the year. To defer to the Plan in future years, you would need to elect new deferrals during open enrollment for that year.

Beneficiary changes may be made online at www.empower-retirement.com/hallmark:

1. Enter your Username and Password

2. Click the “2016 2017 Hallmark Cards, Inc. Deferred Compensation Plan” link

3. Click “Visit Website”

4. Click “Beneficiaries” on the left-side menu

5. Click “Add/Change” and follow the prompts until you receive confirmation

Investment Crediting OptionsThe investment alternatives available to you in the Deferred Compensation Plan differ from those available in the profit sharing and savings plans. To preserve the tax-deferred status of deferred compensation plans, federal law requires that the available investment alternatives be “deemed investments.” That means that you have no ownership interest in the funds you select; the funds are only used to measure the gains or losses that will be attributed to your deferral account over time. Your deferrals and any earnings attributed to those deferrals will be reflected as a contractual liability on Hallmark’s books.

Within the Deferred Compensation Plan, you can allocate your new deferrals and balances among a variety of different investment crediting options, called benchmark funds. These options allow you to diversify among a selection of asset classes that offer a broad range of relative risks and returns. The benchmark funds are not publicly traded mutual funds; they are based on portfolios only available through variable insurance products. In addition, the Interest Rate Fund* is an available investment option. Before making an investment allocation, please review the description of each of the investment crediting options, which may be found online. With the exception of investments in the Interest Rate Fund, these allocations can be changed daily.

*The Interest Rate Fund is currently being credited with interest at a rate of Moody’s Corporate Average Bond Yield. Hallmark reserves the right to change the terms of any investment option, including the Interest Rate Fund and the rate at which interest is credited, to reflect investment markets and opportunities. Any changes will be prospective only and will not reduce existing balances.

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Right to Change the Investment Crediting OptionsHallmark retains the right to change the available investment crediting options. As an example, the index currently used as the rate of return for the Interest Rate Fund* is the Moody’s Corporate Average Bond Yield. At any time, Hallmark may change the rate to a different index or even to a flat rate. Any change will not apply retroactively; only to future periods. If a change is made, Hallmark will notify participants in advance to allow you to explore the options and determine if you need to reallocate your account balances.

Making Investment ElectionsWhen making your deferral election, you will be directed to determine an investment allocation for the funds in that Plan year. If you do not select an investment election, the new deferrals will default to the Interest Rate Fund. With the exception of the Interest Rate Fund, the investment allocations can be changed on a daily basis.

The intent of the Interest Rate Fund is to offer a relatively stable rate of return, while still maintaining a rate that is consistent with that offered by benchmark companies. The decision to move future deferrals or existing account balances into or out of the Interest Rate fund can only be made during the open enrollment period. All transfers into or out of the Interest Rate Fund will be effective on the same day the transfer is requested, if the request is received by 3 p.m. Central time; requests received after 3 p.m. Central time will be effective the next business day. For example, if you elect to move funds into the Interest Rate Fund during open enrollment in 2016, the earnings on those funds will be based on the returns for the Interest Rate Fund effective on the day you elect the transfer, if your request is made before 3 p.m. Central time.

Similar to a 401(k) plan, you may elect separate investment allocations for your new/future deferrals versus your existing funded deferral account balance.

Note: If no investment election is on file, your account will be credited with the Interest Rate Fund* rate of return.

Changing Your Investment ElectionsYou may change each of your investment allocations daily (except for the Interest Rate Fund). Even in payout status, you or your beneficiary can continue to reallocate your unpaid account balances.

Changes received by market close of the New York Stock Exchange (ordinarily 3 p.m. Central time) will be effective the day of receipt based on that day’s closing unit values.

Changes received after the market close (or on a day when the NYSE is not open) will be effective on the next business day after the request date, using the market closing prices from the first business day after the request date.

Note: You may not make allocation changes in your Interest Rate Fund* balance except during the designated time period, with any changes effective for an entire year.

Changes and transfers may be made online at www.empower-retirement.com/hallmark:

1. Enter your Username and Password

2. Click the Plan name

3, Click “Visit Website”

4. Click “Manage Investments”on the left-side menu

5. Click “Make Changes” and follow the on-screen prompts until you receive confirmation that your transaction is complete

*The Interest Rate Fund is currently being credited with interest at a rate of Moody’s Corporate Average Bond Yield. Hallmark reserves the right to change the terms of any investment option, including the Interest Rate Fund and the rate at which interest is credited, to reflect investment markets and opportunities. Any changes will be prospective only and will not reduce existing balances.

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Impact on Your Other Hallmark Qualified and Non-Qualified Excess PlansThe Employee Retirement Income Security Act (“ERISA”) establishes strict rules for eligibility, vesting, and funding for tax-qualified pension benefit plans such as the profit sharing and savings plans. Qualified plans limit the amount of compensation that can be included for purposes of calculating benefits, and the amount of compensation that can be deferred on a pre-tax basis. Retirement and deferred compensation plans that are established for a select group of highly compensated employees do not have to comply with all of ERISA’s rules. These plans are “nonqualified” and permit participants to defer additional compensation, but do not include the protections of ERISA.

The following are some of the key differences between a qualified and non-qualified plan:

Non-Qualified Excess PlansFederal law limits the amount of compensation that can be included for purposes of calculating benefits under a tax-qualified pension benefit plan (e.g. 401(k) and profit sharing plans). The limit is $265,000 for 2016 and it is indexed for increases in the cost of living. The Excess Plan is a non-qualified plan established to provide participants with benefits on eligible compensation earned above the qualified plan limits. A participant will have an excess profit sharing account and an excess savings account.

The excess profit sharing account will include two sub-accounts, one credited with earnings/losses at the same rate as the Hallmark Stock Fund (if applicable) in the qualified plan, the other credited according to the participant’s investment allocations. The participant may allocate his/her self-directed profit sharing sub-account and his/her excess savings account to the same investment options available in the qualified profit sharing and savings plans (and credited at the same rates as the corresponding investment options).

Qualified Plan - 401(k) Hallmark Nonqualified DCP

Participation • All employees are eligible to participate • Only designated highly compensated employees are eligible to participate

Contributions • Limits established on how much can be contributed – 2016 limit of $18,000 – Additional $6,000 max “catch-up” contribution

if over 50

• No statutory maximum contribution – Up to 75% salary – 85% annual incentive bonus earned – 85% LTIP or LT mgmt shares

Distributions • Payout at 59½ without penalty • Penalty-free payouts while still employed or after termination

Investments • Investment options • Investment crediting options

Funding • Must be formally funded in a trust protected from creditors of both employer and participant

• Cannot be formally funded; any assets set aside are subject to claims of employer’s creditors

Federal Regulations • Subject to ERISA • Not subject to ERISA

If eligible, excess cash balance accounts will be credited with the same rate of interest as the qualified cash balance account. Distributions for the Excess Plans are defined by the Plan.

Benefits Eligible PayBase pay and the annual incentive awards are considered “benefits eligible earnings.” Benefits eligible earnings are the basis for calculation of profit-sharing and 401(k) contributions. LTIP awards, or payout on the Long-term Management Shares, are not benefits eligible earnings.

Hallmark Profit SharingAll benefits eligible earnings deferred into the Deferred Compensation Plan will be credited with benefits under the Excess Plans.

For example, if you defer 5% of your base pay to the Deferred Compensation Plan, you will be credited with a profit sharing contribution in the Excess Plan based on the profit sharing award amount.

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Other Important Information

Hallmark /Crayola Savings PlanA savings plan deduction will not be made for base pay or annual incentive amounts deferred into the Deferred Compensation Plan. However, a company match equal to the match that would be applied to a savings plan deduction will be credited to the Deferred Compensation Plan as a restoration match.

Crayola Pension and/or Value Sharing PlanAll benefits eligible earnings deferred into the Plan will be credited with benefits under the Crayola Executive Benefit Equalization Plan.

For example, if your defer 5% of your base pay to the Deferred Compensation Plan, you will be credited with a Value Sharing contribution in the Crayola Executive Benefit Equalization Plan based on the Value Sharing award amount.

Plan AdministrationThis Plan is administered by the Hallmark Compensation Committee, which has discretionary authority to interpret and apply the Plan provisions, and make the rules necessary for the day-to-day administration of the Plan. The Committee consists of three or more persons appointed by the President and CEO of Hallmark Cards, Incorporated. Empower Retirement is the Plan Recordkeeper, responsible for maintaining and reporting participant elections and account balances.

For questions, contact Empower Retirement at 866-233-6886 or empower-retirement.com/hallmark.

Risks of Deferred Compensation PlanInvestment RisksEarnings will be applied to your balances based on the performance of the investment crediting options you select. Although your balances are not directly invested in the selected funds, your account is subject to the same market investment risk as an actual investment in those crediting options. Hallmark does not guarantee investment returns. Past performance is not a guarantee of future performance.

FundingUnder the rules imposed by the IRS, in order to retain the tax deferred status of the plan, the balances deferred cannot be formally funded. The deferrals and any earnings are liabilities of Hallmark and are unsecured obligations of the company.

Rabbi TrustHallmark has set aside assets in a special trust to provide additional assurance that the funds will be

available to pay the participants as scheduled. For the Plan to qualify for important exemptions under the Employee Retirement Income Security Act (ERISA) and to maintain the tax-deferred status of participant accounts, assets held in the Rabbi Trust are considered Company assets and are available to satisfy the claims of creditors of the Company. In the unlikely event of Hallmark’s bankruptcy or insolvency, the assets in the trust will be treated like all other company assets and subject to the general creditors of the Company. Deferred Compensation participants will be considered a general creditor.

Role of Variable Universal Life Insurance New deferrals and their earnings are informally funded through variable universal life insurance. Variable universal life insurance has several advantages:

· Eliminates current taxes on investment income

· Provides a variety of investment choices

· Protects funds from the insurance carrier’s creditors

You may be required to complete a Consent To Be Insured application that requires responses to a few general questions. A physical exam is not required.

Tax informationAmounts contributed to the Plan — as well as earnings on those amounts — are not subject to federal, state, or local income tax (or income tax withholding) until distributed to you.

Your deferrals are subject to applicable FICA (Social Security and Medicare) withholding at the time of deferral. Company contributions, if any, are subject to applicable FICA tax at the time they become vested. Distributions from the Plan are not subject to FICA taxes or withholding.

12 PT283874 (10/16) DC-HAL-67097-1610 ©2016 Great-West Life & Annuity Insurance Company. All rights reserved.

This piece contains a summary of some, but not all, of the features of the Plan. In any event, the terms and provisions of the Plan are controlled by the legal Plan document for the Plan, which shall apply in the event of a conflict between those terms and provisions and any information in this or any other summary.

Representatives of Empower Retirement do not offer or provide investment, fiduciary, financial, legal or tax advice, or act in a fiduciary capacity, for any client unless explicitly described in writing. Please consult with your investment advisor, attorney and/or tax advisor as needed.

Core securities, when offered, are offered through GWFS Equities, Inc. and/or other broker-dealers. GWFS Equities, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of Great-West Life & Annuity Insurance Company.

Empower Retirement refers to the products and services offered in the retirement markets by Great-West Life & Annuity Insurance Company (GWL&A), Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York, Home Office: NY, NY; and their subsidiaries and affiliates. The trademarks, logos, service marks, and design elements used are owned by their respective owners and are used by permission.

Changes in Tax or Other LawsAdministration of the Deferred Compensation Plan is guided by applicable laws. In particular, section 409(A) of the Internal Revenue Code imposed restrictions on plan years 2005 and later. Hallmark will operate the Deferred Compensation Plan in compliance with all governing laws. Hallmark also reserves the right to amend or modify the plan in order to comply with laws or to remain consistent with the original intent of the plan.

Changes in Employment Status: No Right to Continued Employment or Incentive CompensationSome changes in employment status may result in your account being distributed earlier than you had planned. This could result in a significant tax liability. Participation in the plan does not guarantee your continued employment. Separation from service for any reason will result in distributions according to the termination/separation from service distribution election. In addition, your election to defer a percent of incentive compensation does not guarantee that you will be paid any incentive compensation. Incentive payout is dependent upon performance against predetermined metrics.

How to manage your accountCall Empower Retirement at 866-233-6886 for Plan information. You may also log on to a single Web site, www.empower-retirement.com/hallmark, to manage your Hallmark retirement accounts.

This award-winning site provides 24-hour access where you can:

• Review Plan information

• Check your account balance

• Change your investment choices

• Access a wealth of resources

• View and print your quarterly and on-demand statements

How to enroll in your PlanYou must enroll in the Hallmark Cards Deferred Compensation Plan to participate. To begin, log on to your account. The enrollment site has complete enrollment details with a step-by-step guide to completing the online enrollment, as well as links to other helpful resources. You may also consult the Enrollment Guide for specific instructions to help get you started.

2017 Enrollment Period

October 31 – November 11

Enroll online at www.empower-retirement.com/

hallmark

Please note: Deferral elections for the 2017 Plan year and investments into or out of the Interest Rate Fund may be made only during the annual election period. If you do not enroll during the enrollment period, you will not be able to defer to the Plan for 2017.