Pier 1 2010 Annual Report Download - page 138

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Potential Payments upon Termination or Change in Control
The following table shows potential payments to our named executive officers under existing contracts,
agreements, plans or arrangements to which they are a party for various scenarios including a change in control or
termination of employment, assuming the event occurred on February 27, 2010 and, where applicable, using the
closing price of Pier 1 Imports’ common stock of $6.11 (the NYSE closing price on February 26, 2010). The table
below does not include normal (versus early) retirement payout information because as of February 27, 2010 none
of the named executive officers who participate in Pier 1 Imports’ Supplemental Retirement Plan were eligible for
normal retirement. For additional information regarding the Supplemental Retirement Plan, please reference the
Pension Benefits discussion above. Potential payments to our named executive officers upon termination of
employment under Pier 1 Imports’ non-qualified deferred compensation arrangements are discussed in the
Non-Qualified Deferred Compensation Table above.
This disclosure is based on the terms and provisions of the agreements, plans and arrangements as they existed
at the end of Pier 1 Imports’ fiscal 2010, and Pier 1 Imports’ interpretation of those terms and provisions at that
time. One or more of the plans identified may allow the administrative committee of such plan to amend the plan or
award grant agreements pursuant to the plan, subject in particular situations to certain restrictions. In such an event,
the disclosures shown below would vary depending on the amendment or restriction.
As noted above in the Compensation Discussion and Analysis, the Profit Goal for fiscal 2010 was met and each
participant earned one-third of the long-term cash incentive award granted under the Pier 1 Imports, Inc. 2006 Stock
Incentive Plan (“2006 Plan”) during fiscal 2010. All awards earned under the long-term cash incentive award are
payable at the end of fiscal 2012 provided the participant is employed on such date. Under the 2006 Plan, upon a
corporate change (as defined in the plan) the plan’s administrative committee (“Committee”) may, in its discretion,
pay participants an amount equal to the earned portion of the long-term incentive cash award. The table below does
not include potential payments of the earned one-third of the long-term incentive cash awards because (a) it has not
been the normal policy of the Committee to accelerate the payment of long-term incentive awards and (b) the earned
amount is shown in the Summary Compensation Table for fiscal 2010.
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