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EXHIBIT 10.96
RETIREMENT AND RELEASE AGREEMENT
THIS RETIREMENT AND RELEASE AGREEMENT is made and entered into as of January 29, 2004, by and between
FRAN SCHEPER, an individual (hereinafter referred to as Scheper), and Consumer Programs
Incorporated, a Missouri Corporation, on behalf of itself and its affiliated corporations (hereinafter
referred to, alternatively and collectively, as CPI).
WHEREAS, Scheper has served as an employee of CPI for thirty-seven years, including more than
ten years as Executive Vice President, Human Resources; and
WHEREAS, Scheper has decided to retire; and
WHEREAS, Scheper is entitled to certain benefits under her Employment Agreement with CPI dated as of
February 8, 1998 (the Employment Agreement) and under various benefit plans of CPI; and
WHEREAS, CPI and Scheper desire that Schepers benefits be valued and paid out in accordance with
the terms set forth in this Agreement; and
WHEREAS, CPI desires to award to Scheper certain benefits in addition to any to which she may be entitled
under the Employment Agreement and the various benefit plans of CPI (hereinafter, the Special
Retirement Benefits);
NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained
herein, the parties hereby agree as follows:
1. Retirement.    Scheper shall retire from employment with CPI and all officer positions she holds
with CPI Corp. and its affiliated corporations as of February 6, 2004 (the Retirement Date).
2. Special Retirement Benefits.
(a)           CPI shall pay to Scheper the gross
amount of Two Hundred Eight Thousand Dollars ($208,000.00), less an advance in the amount of Eighty
Thousand Dollars ($80,000.00) paid in December 2003, in a lump sum on the Retirement Date.
(b)           Commencing March 2005 and continuing
until she attains age sixty-two (62), CPI shall make supplemental payments to Scheper in the gross
amount of One Thousand Five Hundred Ninety-eight Dollars and Sixty-five Cents ($1,598.65) monthly.
(c)           Scheper may continue to participate
in CPIs group health plan at the rates paid by active employees until she attains age sixty-five.
(d)           CPI shall pay to Scheper a retirement
bonus in the gross amount of Thirty Thousand Dollars ($30,000.00) on the Retirement Date.
(e)           CPI shall pay to Scheper a stipend
for executive search or other transition services in the gross amount of Twenty Thousand Dollars
($20,000.00) on the Retirement Date.
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|(f)            Subject to the approval of the
Stock Option Committee of the Board of Directors of CPI Corp., the exercise period for certain
options granted to Scheper to purchase shares of common stock of CPI Corp. that would have expired
on the first anniversary of the Retirement Date shall be extended until the earlier of their original
expiration date or the second anniversary of the Retirement Date. A schedule of all options held
by Scheper and the terms of exercise is attached hereto as Exhibit A and incorporated herein. By
execution hereof, the parties agree that the terms of all option agreements under which Scheper holds
options shall remain in full force and effect except that the applicable expiration dates for such
options shall be as set forth in Exhibit A.
(g)           CPI will continue to pay the employers
portion of the premium on Schepers General American life insurance policy for a period of two
years after the Retirement Date.
(h)
          CPI will pay Scheper a gross amount equal
to four (4) weeks of vacation pay (based on Schepers current annual salary) on the date of
the first regular payment to CPI employees following the Retirement Date.
(i)            Scheper is entitled to death
or supplemental retirement benefits pursuant to subsections 5(g) and 5(i) of the Employment Agreement
in the annual gross amount of Eighty-three Thousand Two Hundred Dollars ($83,200.00), payable in
equal monthly installments for two hundred forty months, commencing on the earlier of the month after
(i) Schepers death or (ii) the date on which Scheper attains sixty-five years of age. In lieu
thereof, CPI shall pay or cause to be paid to Scheper, the gross amount of Seven Hundred Fifty-four
Thousand Eight Hundred Eighty Dollars and Eighty-two Cents ($754,880.82), payable in a lump sum on
the Retirement Date or as soon as possible thereafter, but in any event not later than two weeks
after the Retirement Date. The payment made by CPI pursuant to this subsection (i) shall be in full
and complete satisfaction of Schepers death and supplemental retirement benefits provided under
subsections 5(h) and 5(i) of the Employment Agreement.
3. Other Benefits. CPI shall also pay or provide to Scheper (or in the event of her death prior to payment, to her beneficiaries)
the following benefits in accordance with the Employment Agreement or other CPI benefit plans and
programs:
(a)           Base salary through the Retirement
Date, based on the annual rate of Two Hundred Eight Thousand Dollars ($208,000.00);
(b)           Any cash bonus earned by Scheper
for CPIs fiscal year 2003;
(c)
          All of Schepers vested and accrued
benefits under the CPI Retirement Plan and Trust (the Pension Plan) in accordance with
the terms of the Pension Plan;
(d)
          All of Schepers vested and accrued
benefits under the Deferred Compensation and Stock Appreciation Rights Plan (the Deferred Compensation
Plan) in accordance with the Deferred Compensation Plan;
(e)           All of Schepers vested and accrued
benefits under the CPI Corp. Employees Profit Sharing Plan and Trust (the Profit Sharing
Plan), in accordance with the terms of the Profit Sharing Plan; and
(f)            Continued indemnification
rights and benefits for Schepers service as an executive officer of CPI in accordance with
CPIs by-laws.
4.
Release. In consideration of the payment by CPI to Scheper of the Special Retirement Benefits described in
Section 2 above, Scheper does hereby release and forever discharge CPI, its affiliated corporations,
and their respective directors, officers, employees and agents, from any and all claims, causes of
action, liabilities and obligations, of any kind whatsoever (except those arising under this Agreement),
whether known or unknown, arising directly or indirectly out of Schepers employment by CPI,
the termination thereof, or the Employment Agreement, including, but not limited to, any claims arising
under or in connection with the Americans with Disabilities Act, the Family and Medical Leave Act,
Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Equal Pay
Act, the Fair Labor Standards Act, the Occupational Safety and Health Act, the Employee Retirement
Income Security Act, the Older Workers Benefit Protection Act, 42 U.S.C. Sections 1981, 1983 and
1985, the Missouri Human Rights Act, the Missouri
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|Service Letter Law (all such statutes as amended), and any regulations under such authorities, or common
law of the state of Missouri, torts, breach of express or implied employment agreement, wrongful
discharge, constructive discharge, infliction of emotional distress, defamation, or tortious interference
with contractual relations. The purpose of the release set forth herein is to make full, final and
complete settlement of all claims, known or unknown, arising directly or indirectly out of Schepers
employment by CPI, the termination thereof, or the Employment Agreement (except those arising under
this Agreement and Section 13 of the Employment Agreement).
5.  Survival of Covenants. Scheper acknowledges and agrees that the covenants and agreements contained in Section 13 of the
Employment Agreement, attached hereto as Exhibit B and incorporated herein, shall survive the execution
and delivery of this Agreement and shall remain in full force and effect in accordance with their
terms, and Scheper hereby affirms those covenants and agreements. All other terms and conditions
of the Employment Agreement shall terminate on the Retirement Date.
6. Withholding Taxes. CPI shall have the right to withhold from all payments due Scheper hereunder to the extent required
by law or regulation, all federal, state and local income and other taxes applicable to such payments.
7. Modification and Waiver. No modification, amendment or waiver of any of the provisions of this Agreement shall be effective
unless made in writing specifically referring to this Agreement, and signed by both parties. The
failure to enforce at any time any of the provisions of this Agreement shall in no way be construed
to be a waiver of such provisions.
8. Severability. The invalidity or unenforceability of any particular provision of this Agreement shall not affect
the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid
or unenforceable provision were omitted.
9. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors, assigns, heirs and legal representatives.
10. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Missouri.
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|IN WITNESS WHEREOF, the parties have executed this Agreement as of the last date written below.
NOTICE TO MS. SCHEPER: This Agreement includes a waiver of certain rights or claims arising prior
to the date this Agreement is executed, including, but not limited to, those rights or claims arising
under the Age Discrimination in Employment Act. You are advised to consult with an attorney prior
to executing this Agreement. CPIs offer to enter into this Agreement with you will remain open
and effective for twenty-one days from the date first written above. You may elect to accept or reject
this offer within that time period. If you do nothing within the twenty-one day period, the offer
will be considered withdrawn by CPI.
If you decide to sign this Agreement and release CPI pursuant to Section 4, you will have seven days
following the return of the signed document to change your mind and revoke the Agreement. If you
desire to revoke the Agreement and release, please deliver notice of such revocation in writing to
Jane E. Nelson, CPI Corp., Legal Department, 1706 Washington Avenue, St. Louis, Missouri 63103, on
or before the close of business on the seventh day following your execution and delivery of the Agreement.
Consequently, this Agreement will not be in effect until seven days have passed following your signing
and delivery of the Agreement.
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|Date: January 29, 2004 |                                            | /s/ Fran Scheper                                   
|---------------------- | ------------------------------------------ | ---------------------------------------------------
|                       |                                            |                                                    
|                       |                                            | Fran Scheper, Individually                         
|                       |                                            |                                                    
|                       |                                            | CONSUMER PROGRAMS INCORPORATED,                    
|                       |                                            | a Missouri corporation, on behalf of itself and its
|                       |                                            | affiliated corporations                            
|                       |                                            |                                                    
|Date: January 29, 2004 | By:                                        | /s/ J. David Pierson                               
|                       |                                            |                                                    
|                       |                                            | J. David Pierson                                   
|                       | Its:  Chairman and Chief Executive Officer

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