Pier 1 2007 Annual Report Download - page 127

of the life annuity payment and insurance premiums for each named executive officer assuming the exec-
utive officer is involuntarily terminated other than for cause or leaves the employment of Pier 1 for good
reason (as defined in the plan) within 24 months of a change in control (as defined in the plan) of Pier 1.
(2) Under grant agreements pursuant to the 1993 Management Restricted Stock Plan (“1993 Plan”) and the
2006 Stock Incentive Plan (“2006 Plan”) termination of employment for any reason results in a forfeiture
to Pier 1 of all unvested restricted stock awards. The amounts shown in the table assume that the vesting
acceleration discussed in footnote 4 or 5 below does not occur upon a voluntary termination of
employment.
(3) As of March 3, 2007, Mr. Smith was not vested in any of the outstanding stock option awards pursuant
to his employment agreement. In the event of a voluntary good reason termination or involuntary without
cause termination as of that date, Option 1 will vest and become exercisable; however, as of the end of
fiscal 2007 Option 1 had no intrinsic value given its exercise price of $6.69 and Pier 1’s common stock
price at the end fiscal 2007 of $6.63.
(4) Under the 2006 Plan, the plan’s administrative committee (“Committee”) may, in its discretion, notwith-
standing the grant agreement, upon a participant’s retirement fully vest any and all Pier 1 common stock
awarded pursuant to a restricted stock award. Although the plan does not define retirement, for the pur-
poses of this table, eligibility for early retirement assumes attainment of age 55 plus 15 years of service
with Pier 1, 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’s stock option grants. The
amount shown for Messrs. Schneider and Walker, who were eligible for early retirement on March 3,
2007, assumes the Committee, in its discretion, fully vested the restricted stock grants under the 2006
Plan. Value shown is market price on March 2, 2007 of $6.63 per share times the number of shares.
Messrs. Turner and Jacobs, given their ages of 50 and 52, respectively, were not eligible for early retire-
ment under the above parameters.
(5) Under the 2006 Plan the Committee in its discretion may, notwithstanding the grant agreement, upon ter-
mination without cause, fully vest any and all Pier 1 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 March 2, 2007 of $6.63 per share times the number
of shares.
(6) Under the 1993 Plan, the compensation committee of the board may accelerate the vesting of restricted
stock awards if such action is in the best interest of Pier 1. 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. This amount assumes the Committee fully vested the
restricted stock grants under the 1993 Plan and 2006 Plan. Value shown is market price on March 2,
2007 of $6.63 per share times the number of shares.
(7) Under the 2006 Plan, the Committee, in its discretion, may upon death or disability fully vest a restricted
stock award. The amount shown assumes the Committee fully vested the restricted stock grants under the
2006 Plan. Value shown is market price on March 2, 2007 of $6.63 per share times the number of shares.
The 1993 Plan includes death and disability as termination of employment events.
(8) Grants of stock options under Pier 1’s 1989 Employee Stock Option Plan (“1989 Plan”), 1999 Stock Plan
(“1999 Plan”) and the 2006 Plan each allow upon a termination with the consent of Pier 1 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 (three months in the 1989 Plan) to exercise any shares vested as of the date of termination.
Only Messrs. Schneider and Walker have stock options with an intrinsic value. The dollar value shown is
market price less exercise price times the number of options.
(9) Under the 1989 Plan, 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. 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. The 1989
Plan allows the optionee to exercise all shares that are vested on the date of retirement; however, all
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