Pier 1 2008 Annual Report Download - page 102

Each participant acquires full and immediate ownership of all shares and fractional shares allocated to his
account. All shares are registered in the name of the plan and remain registered in the plan’s name until
delivery of the shares to the participant pursuant to the plan. Shares of common stock held by the plan in a
participant’s account may not be sold, assigned, pledged or otherwise dealt with by the participant, and the
participant may request that all of his shares be delivered to him at any time. Any such action, however, will
result in the automatic withdrawal of the participant from the plan. Upon termination of employment, the
employee’s participation in the plan will end and his shares will be distributed upon request or automatically
at the same time as shares are distributed to participants as described in the following sentence. All shares in a
participant’s account, however, will be automatically distributed to the participant pursuant to the plan at least
once each calendar year without affecting the participant’s participation in the plan.
A participant’s account is credited with all dividends, if any, paid on full and fractional shares held in his
account. All cash dividends are reinvested under the plan in common stock.
Compensation Deductions and Our Contributions
A participant must specify the amount to be withheld from his compensation, with a minimum of $2.50
per week and a maximum of 20% of his compensation. The plan provides that directors who are not
employees may contribute to the plan all or a portion of their cash director fees. Subject to the plan’s
limitations, compensation deductions may be increased or decreased at any time by the participant. Pier 1
Imports will contribute to the plan an amount equal to 25% of each participant’s compensation deduction.
Amendment or Termination of the Plan
The board of directors may amend, suspend or terminate the plan at any time. An amendment, suspension
or termination will not result in the forfeiture of any funds contributed by a participant or Pier 1 Imports, or of
any shares or fractional shares purchased for a participant, or of any dividends or other distributions with
respect to such shares, that were effective before the effective date of the amendment, suspension or
termination. Certain material amendments to the plan must be submitted to our shareholders for their approval.
U.S. Federal Income Tax Effects
The amount of Pier 1 Imports’ contribution to the plan is treated as “earned income” to the participant,
which is subject to federal income tax at ordinary rates, and the participant’s withholding taxes will be
increased appropriately. Assuming federal income tax withholding requirements are satisfied, Pier 1 Imports
receives a deduction for participants’ and Pier 1 Imports’ contributions to participants’ accounts.
Benefits Under the Plan
The following table shows for the persons and groups indicated, the amounts actually contributed in cash
by the employee and Pier 1 Imports, and the number of shares purchased under the plan for their respective
accounts during the fiscal year ended March 1, 2008.
Pier 1 Imports, Inc. Stock Purchase Plan
Name and Position
Participant
Cash
Contributions
Pier 1 Imports
Cash
Contributions
Shares
Purchased
Alexander W. Smith(1) .................................. N/A N/A N/A
President and Chief Executive Officer .....................
Charles H. Turner ...................................... $ 43,985 $ 21,992 10,936
Executive Vice President and Chief Financial Officer
Gregory S. Humenesky .................................. $ 4,423 $ 1,261 1,006
Executive Vice President, Human Resources ................
Jay R. Jacobs ......................................... $ 40,673 $ 20,337 10,079
Executive Vice President, Merchandising
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