Pier 1 2008 Annual Report Download - page 129

executive officer (for Mr. Smith, the lump-sum amount of the actuarial equivalent of his benefits) assum-
ing the executive officer is involuntarily terminated other than for cause or leaves the employment of
Pier 1 Imports for good reason (as defined in the plan) within 24 months of a change in control (as
defined in the plan) of Pier 1 Imports.
(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 Imports 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) 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 Imports’
common stock awarded pursuant to a restricted stock award. Although the plan does not define retire-
ment, 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. The amount shown for Mr. Walker, who is eligible for early retire-
ment on March 1, 2008, assumes the Committee, in its discretion, fully vested the restricted stock grants
under the 2006 Plan. Value shown is market price on March 1, 2008 of $5.24 per share times the number
of shares. Messrs. Turner, Humenesky and Jacobs, given their ages of 51, 56 and 53, respectively, were
not eligible for early retirement under the above parameters. 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.
(4) 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 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 March 1, 2008 of $5.24 per share times
the number of shares.
(5) Under the 1993 Plan, the compensation committee of the board of directors may accelerate the vesting of
restricted stock awards if such action is in the best interest of Pier 1 Imports. 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 1, 2008 of $5.24 per share times the number of shares.
(6) 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 1, 2008 of $5.24 per share times the number of shares.
The 1993 Plan includes death and disability as termination of employment events.
(7) Grants of stock options under Pier 1 Imports’ 1989 Employee Stock Option Plan (“1989 Plan”), 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 (three months in the 1989 Plan) to exercise any shares vested as of the
date of termination. No named executive officer has stock options with an intrinsic value.
(8) 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 Imports. Eligi-
bility 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; how-
ever, all options under the 1989 Plan are fully vested. Optionees would have until the earlier of (a) the
expiration of the option term, or (b) three years from the date of retirement to exercise the vested shares.
Only Mr. Walker is eligible for early retirement given his age and years of service with Pier 1 Imports.
No named executive officer has stock options with an intrinsic value.
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