Pier 1 2011 Annual Report Download - page 137

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 and Humenesky and Mses. David
and Leite are respectively ages 58, 54, 59, 47 and 48. 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 administrative committee may, in its discretion, 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, unless the award was granted to a “covered employee” (as defined in the applicable
Treasury Regulations) and the award was designed to meet the exception for performance-based compensation
under Section 162(m) of the Internal Revenue Code. The chief financial officer, Mr. Turner, is not included as a
“covered employee” under the applicable Treasury Regulations. The amount shown assumes the administrative
committee fully vested any and all time-based restricted stock grants and Mr. Turner’s performance-based
restricted stock grants under the 2006 plan. Value shown is the NYSE closing price on February 25, 2011 of
$9.78 per share times the number of shares.
(5) Under the 2006 plan the administrative 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 awards are governed by his employment agreement and no assumption is made regarding administrative
committee action fully vesting those awards. Assuming the administrative committee fully vested the other
named executive officers’ restricted stock grants under the 2006 plan, then that amount is shown. Value shown
is the NYSE closing price on February 25, 2011 of $9.78 per share times the number of shares.
(6) Under the 2006 plan the administrative committee may, in its discretion, upon death or disability fully vest a
restricted stock award, unless the award was granted to a “covered employee” (as defined in the applicable
Treasury Regulations) and the award was designed to meet the exception for performance-based compensation
under Section 162(m) of the Internal Revenue Code. The chief financial officer, Mr. Turner, is not included as a
“covered employee” under the applicable Treasury Regulations. Mr. Smith’s restricted stock awards are
governed by his employment agreement and no assumption is made regarding administrative committee action
fully vesting those awards. Assuming the administrative committee fully vested the other named executive
officers’ time-based restricted stock grants and Mr. Turner’s performance-based restricted stock grants under the
2006 plan, then that amount is shown. Value shown is the NYSE closing price on February 25, 2011 of $9.78
per share times the number of shares.
(7) Grants of stock options under the 1999 plan and the 2006 plan allow upon a termination of employment 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.
Mr. Smith and Ms. David do not have any stock options granted under either plan. Vested stock options and
their exercise prices are shown above in the table included under the caption “Outstanding Equity Awards Table
for the Fiscal Year Ended February 26, 2011.”
(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. All outstanding options under the 1999
plan are fully vested. Messrs. Turner and Humenesky and Ms. Leite are respectively ages 54, 59 and 48.
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.
(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 any shares vested as of
the date of termination. Vested stock options and their exercise prices are shown above in the table included
under the caption “Outstanding Equity Awards Table for the Fiscal Year Ended February 26, 2011.”
(10) Upon termination for cause, all options terminate at the termination of employment.
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