Pier 1 2010 Annual Report Download - page 140

(3) Under the 2006 Plan, the Committee may, in its discretion, notwithstanding the grant agreement, upon a
participant’s retirement fully vest any and all Pier 1 Imports’ common stock awarded pursuant to a restricted
stock award. Although the plan does not define retirement, for the purposes of this table, eligibility for early
retirement assumes attainment of age 55 plus 15 years of service with Pier 1 Imports, and eligibility for normal
retirement assumes age 65 regardless of years of service. These are the same parameters for early retirement and
normal retirement used in Pier 1 Imports’ stock option grants. Messrs. Smith, Turner, Benkel and Humenesky
and Ms. Leite are respectively ages 57, 53, 41, 58, and 47. Although Messrs. Smith and Humenesky have
attained the age of 55, they do not have 15 years of service with Pier 1 Imports to be eligible for early retirement
under the above assumption.
(4) Under the 2006 Plan the Committee in its discretion may, notwithstanding the grant agreement, upon
termination without cause, fully vest any and all Pier 1 Imports’ common stock awarded pursuant to a restricted
stock award. The amount shown assumes the Committee fully vested any and all restricted stock grants under
the 2006 Plan. Value shown is market price on February 26, 2010 of $6.11 per share times the number of shares.
(5) Under the 2006 Plan the Committee may, in its discretion, upon a corporate change (as defined in the plan) fully
vest any or all common stock awarded pursuant to a restricted stock award. Mr. Smith’s restricted stock award is
governed by his employment agreement, as renewed and extended, and no assumption is made regarding
Committee action fully vesting that award. Assuming the Committee fully vested the other named executive
officers’ restricted stock grants under the 2006 Plan, then that amount is shown. Value shown is market price on
February 26, 2010 of $6.11 per share times the number of shares.
(6) Under the 2006 Plan the Committee may, in its discretion, upon death or disability fully vest a restricted stock
award. Mr. Smith’s restricted stock award is governed by his employment agreement, as renewed and extended,
and no assumption is made regarding Committee action fully vesting that award. Assuming the Committee fully
vested the other named executive officers’ restricted stock grants under the 2006 Plan, then that amount is
shown. Value shown is market price on February 26, 2010 of $6.11 per share times the number of shares.
(7) Grants of stock options under the Pier 1 Imports, Inc. 1999 Stock Plan (“1999 Plan”) and the 2006 Plan each
allows upon a termination with the consent of Pier 1 Imports for the optionee to have until the earlier of (a) the
expiration of the option term, or (b) the 91st day after the date of termination to exercise any shares vested as of
the date of termination.
(8) Under the 1999 Plan and the award agreements pursuant to the 2006 Plan, eligibility for early retirement
requires attainment of the age of 55 years, plus 15 years of service with Pier 1 Imports. Eligibility for normal
retirement is attained at age 65 regardless of years of service. Under the 1999 Plan and the award agreements
pursuant to the 2006 Plan the vesting of all options is accelerated upon retirement. Messrs. Turner, Benkel and
Humenesky and Ms. Leite are respectively ages 53, 41, 58 and 47. Although Mr. Humenesky has attained the
age of 55, he does not have 15 years of service with Pier 1 Imports to be eligible for early retirement. Mr. Smith
does not have any stock options granted under either plan.
(9) Upon termination of employment with the consent of Pier 1 Imports, optionees have until the earlier of (a) the
expiration of the option term, or (b) the 91st day after the date of termination to exercise the shares vested as of
termination.
(10) Upon termination for cause, all options terminate at the termination of employment.
(11) Upon a change in control event (as defined in the 1999 Plan), options granted under the 1999 Plan would
automatically vest unless Pier 1 Imports’ board of directors determines otherwise prior to the change in control
event. No named executive officer has stock options granted under the 1999 Plan with an intrinsic value. Under
the 2006 Plan, upon a corporate change (as defined in the plan) the vesting of options may be accelerated, the
options may be surrendered for a cash payment or adjusted at the discretion of the Committee or the Committee
may determine to make no changes to the options. Assuming that upon a corporate change an acceleration of the
vesting of the options granted under the 2006 Plan occurs, only Mr. Benkel had stock options with an intrinsic
value. The dollar value shown is market price on February 26, 2010 of $6.11 less the exercise price times the
number of options. The exercise term would be determined by the Committee.
48