Document:

exh10_31.htm

     

    (PAGE NUMBERS REFER TO PAPER DOCUMENT
ONLY)

     

    EXHIBIT 10.31

    

    

    CPI
CORP.

    NON-EMPLOYEE
DIRECTORS RESTRICTED STOCK POLICY

    PURSUANT
TO

    THE
CPI CORP. OMNIBUS INCENTIVE PLAN

    EFFECTIVE
AS OF AUGUST 14, 2008

     

    

    1.  Purpose

     

    The
Company believes it to be in the best interests of the Company, its subsidiaries
and its stockholders for Non-Employee Directors of the Company’s Board of
Directors to obtain or increase their stock ownership interest in the Company,
thereby attracting, retaining and rewarding such directors and strengthening the
mutuality of interest between the directors and the Company's
stockholders.  The purpose of this policy (the “Policy”), which is
adopted pursuant to Section 12.1 of the CPI Corp. Omnibus Incentive Plan, as
approved by the Company’s shareholders on July 17, 2008 (the “Plan”), is to
advance the interests of the Company and its stockholders by enabling
Non-Employee Directors to elect to receive Restricted Shares in lieu of a
portion of the Annual Retainer that they receive as Directors of the
Company.

    

    2.  Definitions

     

    Unless
the context clearly indicates otherwise, the following capitalized terms shall
have the following meanings:

     

    
      	
              (a)  

            	
              “Annual
      Retainer” shall mean the sum of (1) the annual cash retainer fee payable
      by the Company to a Non-Employee Director for services as a director of
      the Company, and (2) the annual cash retainer fee payable by the Company
      to a Non-Employee Director for serving as the chairman of a standing
      committee of the Board, as such amount may be determined from time to
      time.

            

    

     

    
      	
              (b)  

            	
              “Annual
      Retainer Period” shall mean a fiscal year of the Company; provided that in the
      event a Non-Employee Director shall become a member of the Board after the
      first day of a fiscal year of the Company, such Non-Employee Director’s
      Annual Retainer Period shall, solely for purposes of this Policy, mean the
      period beginning on the date that is thirty (30) days after such
      Non-Employee Director is notified by the Company, in writing, that he or
      she is eligible to participate in this Policy for such fiscal year and
      ending on the last day of such fiscal
year.

            

    

     

    
      	
              (c)  

            	
              “Fair
      Market Value” shall mean, with respect to any date, the last sale price of
      the Company’s Common Stock on the New York Stock Exchange on a particular
      date as reported in the Wall Street Journal; provided that if there
      shall be no sales of shares of Common Stock reported on such date, the
      Fair Market Value of a share of Common Stock on such date shall mean the
      last sale price of the Company’s Common Stock on the New York Stock
      Exchange on the last preceding date on which sales of such shares were
      reported.

            

    

     

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

     

    
      	
              (d)  

            	
              “Non-Employee
      Director” shall mean a member of the Board who is not an employee of the
      Company or any of its Subsidiaries.

            

    

     

    
      	
              (e)  

            	
              “Normal
      Retirement” shall mean a Non-Employee Director’s voluntary or involuntary
      termination of membership on the Board on or after attainment of age
      sixty-five (65).

            

    

     

    
      	
              (f)  

            	
              “Plan”
      shall have the meaning set forth in Section 1
  hereof.

            

    

     

    
      	
              (g)  

            	
              “Restricted
      Shares” shall mean Shares issued to a Non-Employee Director under the Plan
      pursuant to this Policy that are subject to the Restrictions imposed by
      Section 5 hereof.

            

    

     

    
      	
              (h)  

            	
              “Restrictions”
      shall have the meaning set forth in Section 5(a)
  hereof.

            

    

     

    
      	
              (i)  

            	
              “Shares”
      shall mean shares of Common Stock of the
  Company.

            

    

     

    
      	
              (j)  

            	
              “Subsidiary”
      or “Subsidiaries” shall mean any corporation, partnership, joint venture
      or other business entity in which a fifty percent (50%) or greater
      interest is, at the time, directly or indirectly, owned by the Company and
      one or more Subsidiaries.

            

    

     

    
      	
              (k)  

            	
              “Total
      and Permanent Disability” shall mean a disability as described in Section
      22(e)(3) of the Internal Revenue Code of 1986, as amended, or any
      successor provisions.

            

    

     

    All other
capitalized terms not otherwise defined herein shall have the meanings for such
terms set forth in the Plan.

     

    3.  Election
to Receive Restricted Shares

     

    (a)           Under
this Policy, each Non-Employee Director shall have the right to elect to receive
up to 100% of his or her Annual Retainer in the form of Restricted Shares;
provided however that an election under this Policy shall not be valid unless
the Non-Employee Director shall have elected to receive at least 50% of his or
her Annual Retainer for the Annual Retainer Period in the form of Restricted
Stock pursuant to this Policy.  Upon making a valid and timely
election under this Policy, the Non-Employee Director will be awarded that
number of Restricted Shares determined by dividing (1) one hundred twenty-five
percent (125%) of that portion of the Non-Employee Director’s Annual Retainer
for the Annual Retainer Period for which the election is being made by (2) the
Fair Market Value of one share of Common Stock as of the first day of such
Annual Retainer Period.  To the extent that the application of the
foregoing formula would result in fractional Shares being issuable, cash will be
paid to the Non-Employee Director in lieu of such fractional
shares.

    

    (b)           To
be valid, an election by a Non-Employee Director to receive any portion of his
or her Annual Retainer for an Annual Retainer Period in Restricted Shares must
be made in writing on or before the first day of the Annual Retainer Period to
which such election applies.  Any such election (1) shall specify the
percentage of the Non-Employee Director’s Annual Retainer 

     

     

    
      
        
        

      

      
        1

        
        

      

      
        
        

      

    

     

     

    to be
paid in Restricted Shares (which percentage shall not be less than 50%) and (2)
shall be irrevocable for the Annual Retainer Period for which such election is
made.

    

    4.  Restricted
Shares

     

    (a)           Each
Non-Employee Director who elects to receive Restricted Shares under this Policy
shall execute and deliver to the Company an agreement evidencing the terms,
conditions and Restrictions applicable to such Restricted
Shares.  Each Non-Employee Director receiving Restricted Shares may be
issued a stock certificate or certificates with respect to such Restricted
Shares.  Any such certificate, if issued, shall be registered in the
name of such Non-Employee Director and shall bear an appropriate legend
referring to the terms, conditions, and Restrictions applicable to such
Restricted Shares.  The Committee may require that the stock
certificates evidencing such Restricted Shares be held in escrow by the Company
until the Restrictions thereon shall have terminated in accordance with Section
5 hereof and that, as a condition to delivery of any certificate relating to
Restricted Shares, the Non-Employee Director deliver to the Company a stock
power, endorsed in blank, relating to such Restricted
Shares.  Notwithstanding anything to the contrary herein whether
express or implied, the Company in its sole discretion may issue Restricted
Shares in uncertificated format pursuant to procedures established between the
Company and the Company’s stock transfer agent and in accordance with Section
158 of the Delaware General Corporation Law.

    

    (b)           Promptly
after the termination of the Restrictions, without a prior forfeiture, with
respect to a Non-Employee Director’s Restricted Shares, a certificate for such
shares shall be delivered to the Non-Employee Director free of all restrictions
and legends.  If a stock certificate was previously delivered to the
Non-Employee Director, the replacement certificate will not be delivered to the
Non-Employee Director until the previously delivered certificate is returned to
the Company in a form acceptable for transfer, free and clear of all liens,
claims and encumbrances.

    

    (c)           Subject
to the Restrictions, a Non-Employee Director will be given, with respect to his
or her Restricted Shares, all rights of a stockholder of the Company, including
the right to vote the Restricted Shares, and the right to receive any cash or
stock dividends thereon.  Any stock dividends issued with respect to
Restricted Shares shall be treated as additional shares of Restricted Shares
that are subject to the same Restrictions and other terms and conditions that
apply to the Restricted Shares with respect to which such dividends are
issued.

    

    (d)           The
Committee may impose such other restrictions on any Restricted Shares issued
under the Plan as a result of an election pursuant to this Policy as it may deem
advisable including, without limitation, restrictions under applicable federal
laws, under the requirements of any stock exchange upon which such shares or
shares of the same class are then listed, and under any blue sky or securities
laws applicable to such shares.  The Committee, if it deems it
appropriate, may condition the delivery of Restricted Shares under the Plan upon
receipt of an appropriate investment representation from the recipient
thereof.  The Company, in its discretion, may postpone the issuance
and delivery of Shares pursuant to the Plan until completion of registration or
other qualification of the Shares under any state or federal law, rule, or
regulation as the Company may consider appropriate.  The Company may
further require any Non-Employee Director or other person receiving shares of
Common Stock under the Plan to make 

     

     

    
      
        
        

      

      
        2

        
        

      

      
        
        

      

    

     

     

     

    such
representations and furnish such information as it may consider appropriate in
connection with the issuance of the shares in compliance with applicable
law.

    

    5.  Restrictions;
Lapse of Restrictions

     

    (a)           The
Restricted Shares issued to a Non-Employee Director under the Plan as a result
of an election under this Policy shall be subject to the following transfer and
forfeiture restrictions (collectively, the “Restrictions”):

    

    (i)  Transfer.  Prior
to the date that the Restrictions shall have lapsed under Section 5(b) below,
the Non-Employee Director may not directly or indirectly, by operation of law or
otherwise, voluntarily or involuntarily, anticipate, alienate, attach, sell,
assign, pledge, encumber, charge or otherwise transfer all or any part of the
Restricted Shares.

    

    (ii)  Forfeiture.  Upon
termination of a Non-Employee Director’s membership on the Board, all Restricted
Shares held by such Non-Employee Director at the effective time of such
termination of membership on the Board, as determined after the application of
Section 5(b) below, shall immediately thereafter be returned to and/or canceled
by the Company, and shall be deemed to have been forfeited by the Non-Employee
Director to the Company.  Upon any forfeiture of Restricted Shares
under this Section 5(a), the Company will pay the Non-Employee Director a per
share price for any such forfeited Restricted Shares equal to the lesser of (i) the
amount determined by dividing the aggregate amount of the Non-Employee
Director’s Annual Retainer that the Non-Employee Director elected to receive in
the form of the Restricted Shares, rather than in cash, by the aggregate number
of Restricted Shares awarded to the Non-Employee Director with respect to such
Annual Retainer, or (ii) an amount equal to the Fair Market Value of a share of
Common Stock on the date the Non-Employee Director’s membership on the Board is
terminated.

    

    (b)           The
Restrictions shall lapse with respect to the Restricted Shares issued to a
Non-Employee Director hereunder on the last day of the Annual Retainer Period
with respect to which such Restricted Shares were
issued.  Notwithstanding the preceding sentence, the Restrictions
shall lapse with respect to any Restricted Shares held by a Non-Employee
Director upon (i) a Change in Control of the Company prior to the last day of
the relevant Annual Retainer Period, (ii) a termination of the Non-Employee
Director’s membership on the Board prior to the last day of the relevant Annual
Retainer Period as a result of the Non-Employee Director’s death, Total and
Permanent Disability, or Normal Retirement, or (iii) a termination of the
Non-Employee Director’s membership on the Board prior to the last day of the
relevant Annual Retainer Period for any other reason as determined by the
Committee in its sole discretion.  Except as otherwise provided in
Section 4(d), Restricted Shares issued hereunder shall become freely
transferable by the Non-Employee Director after the Restrictions on such shares
lapse in accordance with this Section 5(b).

    

    (c)           In
the event of a termination of a Non-Employee Director’s membership on the Board
the Non-Employee Director shall promptly deliver to the Company the certificates
representing the forfeited Restricted Shares to the Company, as determined after
the application 

     

     

    
      
        
        

      

      
        3

        
        

      

      
        
        

      

    

     

    of
Section 5(b) hereof, together with any documents requested by the Company
necessary to effectuate such transfer, and the Company shall pay the
Non-Employee Director the consideration per share specified in Section 5(a)(ii)
above promptly following the Non-Employee’s deliveries under this Section
5(c).

    

    6.     
 Miscellaneous
Provisions

     

    
      	
              (a)  

            	
              Neither
      the Plan nor any action taken hereunder shall be construed as giving any
      Non-Employee Director any right to be retained in the service of the
      Company.

            

    

     

    
      	
              (b)  

            	
              A
      participant’s rights and interest under the Policy may not be assigned or
      transferred, hypothecated or encumbered in whole or in part either
      directly or by operation of law or otherwise (except in the event of a
      participant’s death, by will or the laws of descent and distribution),
      including, but not by way of limitation, execution, levy, garnishment,
      attachment, pledge, bankruptcy or in any other manner, and no such right
      or interest of any participant in the Plan shall be subject to any
      obligation or liability of such
participant.

            

    

     

    
      	
              (c)  

            	
              No
      Shares shall be issued hereunder unless counsel for the Company shall be
      satisfied that such issuance will be in compliance with applicable
      federal, state, local and foreign securities, securities exchange and
      other applicable laws and
requirements.

            

    

     

    
      	
              (d)  

            	
              By
      accepting any Restricted Shares pursuant to this Policy, each participant
      and each person claiming under or through him or her shall be conclusively
      deemed to have indicated his or her acceptance and ratification of, and
      consent to, any action taken under the Plan by the Company or the
      Committee.

            

    

     

    
      	
              (e)  

            	
              The
      terms of this Policy and any Restricted Shares delivered hereunder are
      subject to the terms and conditions of the Plan and may be amended by the
      Committee.

            

    

     

    
      	
              (f)  

            	
              This
      Policy shall be effective as of August 14, 2008, and shall apply to Annual
      Retainer Periods beginning after the effective date
  hereof.

            

    

     

    

     

    

     

    

    

    

    
      
        
            

        

         

      

      
        4exh10_33.htm

    EXHIBIT 10.33

    

    

    

    CPI
CORP.

    NON-EMPLOYEE
DIRECTORS RESTRICTED STOCK POLICY

    

    

    

    RESTRICTED
STOCK ELECTION

    

    Fiscal
Year 2009

    

    

    

    NAME OF
PARTICIPANT:    ____________________________

    

    I
understand that I have the right, pursuant to the terms of the Non-Employee
Directors Restricted Stock Policy (the “Policy”) adopted by the Company on as of
August 14, 2008, to elect to receive up to 100% (but not less than 50%) of my
Annual Retainer for the twelve (12) month period beginning February 8, 2009 (“FY
2009”) in the form of Restricted Shares.  I further understand that by
making an election under the Policy, I will be awarded that number of Restricted
Shares determined by dividing (1) one hundred twenty-five percent (125%) of the
portion of my Annual Retainer for FY 2009 which I elect to receive in the form
of Restricted Shares by (2) $7.14, which is the Fair Market Value of one share
of Common Stock as of February 8, 2009.

    

    Annual Board Retainer Fee

    

    I hereby
elect to receive the following portion of my annual Board retainer fee for FY
2009 in the form of Restricted Shares:

    

    (Select only one of the options set
forth below)

    

    [    ]  Option One:  0% of
my FY 2009 annual cash retainer fee.

    

    [    ] 
Option
Two:  ____% of my FY 2009 annual cash retainer fee (specify a
whole percentage not less than 50% and not greater than 100%).

    

    

    Annual Committee Chairman Retainer
Fee

    

    I hereby
elect to receive the following portion of my annual committee chairman retainer
fee for FY 2009 in the form of Restricted Shares:

    

    (Select only one of the options set
forth below)

    

    [    ]  Option One:  0% of
my FY 2009 annual committee chairman retainer fee.

    

    [    ] 
Option
Two:  ____% of my FY 2009 annual committee chairman retainer
fee (specify a whole percentage not less than 50% and not greater than
100%).

      

    

    I
understand that any Restricted Shares granted to me pursuant to this election
shall be subject to all of the terms and conditions set forth in the Policy and
in the CPI Corp. Omnibus Incentive Plan, as amended from time to time (the
“Plan”), copies of which are attached.  I further understand that if I
have elected Option Two, above, I agree to execute and deliver to the Company an
agreement evidencing the terms, conditions and Restrictions applicable to such
Restricted Shares in a form substantially equivalent to the form of Restricted
Stock Award Agreement attached hereto.

    

    I
understand upon any termination of my membership on the Board prior to February
6, 2010, for any reason other than my death, Total and Permanent Disability, or
Normal Retirement, the Restricted Shares awarded to me as a result of my
election shall be returned to and canceled by the Company and shall be deemed to
have been forfeited by me. Upon any such forfeiture of Restricted Shares, I
understand that the Company will pay me a per share price for any such forfeited
Restricted Shares equal to the lesser of (i) the
amount determined by dividing the aggregate amount of my Annual Retainer that I
elected to receive in the form of the Restricted Shares hereunder by the
aggregate number of Restricted Shares awarded to me as a result of this
election, or (ii) an amount equal to the Fair Market Value of a share of the
Company’s Common Stock on the date my membership on the Board is
terminated.

     

     

    
      
         

      

      
         

        
        

      

      
         

      

    

    
 

    I
understand that this election, to be valid, must be received by the Secretary of
the Board by not later than February 20, 2009, and that if I fail to return this
election by such date I will be deemed to have selected Option 1, above, with
respect to my Annual Retainer. I further understand that this election, once
made, is irrevocable by me.

    

    Please
acknowledge receipt of this election by endorsing the enclosed copy and
returning it to me.

    

    

    

    Signed this _______ day of
______________________________________, 2009.

    

    

    _____________________________________________

    Signature of Director

    

    

    
      	
               
      

            	
              Accepted
      by Plan Administrator

            

    

    

    
      	
               
      

            	
              By:
      _______________________________

            

    

    

    
      	
               
      

            	
              Date:
      ______________________________

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