Exhibit 10.1


 


SUMMARY PLAN DESCRIPTION OF


 


PIER 1 IMPORTS LIMITED SEVERANCE PLAN


 


NATURE AND PURPOSE OF PLAN:


 


The Pier 1 Imports Limited Severance Plan (the “Plan”)
is a welfare benefit plan which is intended to provide severance benefits to
certain employees of Pier 1 Imports, Inc. and its subsidiaries and
affiliates (the “Employer”).


 


PLAN BENEFIT ELIGIBILITY:


 


Employer’s regular employees who are involuntarily
terminated as a result of any reduction in force in connection with a
reorganization of the Employer’s corporate home office and/or field operations
are eligible for Plan severance benefits. 
Certain officers of Employer who have individual employment agreements
or post-employment consulting agreements may not be eligible for Plan severance
benefits.


 


YOUR PLAN CONTRIBUTIONS:


 


You do not have to pay anything for your Plan
coverage.


 


DEFINITION OF A “YEAR OF
SERVICE”:


 


The amount of your Plan benefits is based in part upon
your total “Years of Service” with the Employer. A “Year of Service” is each twelve
consecutive month period of continuous employment with the Employer determined
from your most recent date of hire by the Employer.  For purposes of determining your “Years of
Service,” any partial year is disregarded.


 


PLAN BENEFITS:


 


Your Plan severance pay generally will be as follows:


 


·                                          If you are classified by the Employer as a non-exempt
employee, your Plan severance pay amount is equal to one “Weeks’ Base Pay”
(defined below) for each of your Years of Service up to a maximum of thirteen Weeks’
Base Pay.  If you have twenty or more Years
of Service, your Plan severance pay amount is equal to twenty Weeks’ Base Pay.


 


·                                          If you are classified by the Employer as an exempt
employee, your Plan severance pay amount is equal to two Weeks’ Base Pay for
each of your Years of Service up to a maximum of twenty Weeks’ Base Pay.  If you have twenty or more Years of Service,
your Plan severance pay amount is equal to twenty-eight Weeks’ Base Pay.


 


·                                          If you are classified by the Employer as an exempt
employee and you hold a director level position at the time of termination,
your Plan severance pay amount is equal to three Weeks’ Base Pay for each of
your Years of Service up to a maximum of twenty Weeks’ Base Pay.  If you have twenty or more Years of Service,
your Plan severance pay amount is equal to twenty-eight Weeks’ Base Pay.


 


·                                          If you are classified by the Employer as an exempt
employee and you are an officer of the Employer at the time of termination,
your Plan severance pay amount is equal to three Weeks’ Base Pay for each of your
Years of Service up to a maximum of thirty-six Weeks’ Base Pay.  If you have twenty or more Years of Service,
your Plan severance pay amount is equal to forty-two Weeks’ Base Pay.


 


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In all cases, your severance pay amount will be
reduced by any pay in lieu of notice which the Employer pays to you in
connection with your termination of employment.


 


For purposes of the foregoing schedule, your “Week
Base Pay” is the result obtained by dividing the annual amount of your base
salary or regular hourly pay as in effect immediately preceding the date of
your involuntary termination by fifty-two; provided, however, regular hourly
pay for non-exempt employees who work in field operations will be based on
average weekly hours worked during the six months preceding the date of
termination.  Your “Week Base Pay” will
not be based upon any overtime pay, bonuses, benefits or incentive or other
special compensation.


 


Notwithstanding the foregoing, the Employer may, on a
case-by-case basis with respect to any individual covered employee or group of
covered employees and in its sole and absolute discretion (i) decrease or
increase the severance pay amount (including, without limitation, a deduction
to zero) payable under the Plan to such individual covered employee or group of
covered employees, and/or (ii) include or exclude certain other severance
benefits, such as outplacement services, available under the Plan to such
individual covered employee or group of covered employees.  Further, the Employer may on a case-by-case
basis and in its sole and absolute discretion waive any condition or rule imposed
under the Plan as a condition for eligibility for severance pay benefits under
the Plan.


 


RELEASE AGREEMENT:


 


As an absolute condition to your entitlement to any
Plan severance benefits, you will be required to release the Employer, in a
form required by Employer, from any and all claims and causes of action which
you may have against any of them and to agree to certain confidentiality and
nondisclosure agreements.


 


HOW TO FILE A CLAIM:


 


Generally, the Employer’s administrative staff will
automatically determine if you are eligible for Plan severance benefits, notify
you that you are and distribute your Plan severance benefit to you after you
have delivered the required release.  If
your employment with the Employer has terminated, and you believe that you are
entitled to Plan benefits and have not received them (or any confirmation that
you will receive them), a claim for benefits under the Plan may be made by
written notice to the Plan Administrator.


 


CLAIMS PROCEDURES:


 


For purposes of these procedures, the term “Adverse
Benefit Determination” refers to any denial, reduction or termination of or
failure to provide or make payment (in whole or in part) for a Plan benefit,
including any denial, reduction, termination or failure to provide or make
payment that is based on a determination of a Claimant’s eligibility to
participate in the Plan and the term “Claimant” refers to a person (or an
authorized representative) who has filed or desires to file a claim for a Plan
benefit.


 


In any case of an Adverse Benefit Determination of a
claim for a Plan benefit, the Plan Administrator shall furnish written notice
to the affected Claimant within a reasonable period of time but not later than
ninety days after receipt of such claim for Plan benefits. Any notice that
denies a benefit claim of a Claimant in whole or in part shall, in a manner
calculated to be understood by the Claimant:


 


·                  State the specific reason or reasons
for the Adverse Benefit Determination;


·                  Provide specific reference to
pertinent Plan provisions on which the Adverse Benefit Determination is based;


·                  Describe any additional material or
information necessary for the Claimant to perfect the claim and explain why
such material or information is necessary; and


·                  Describe the Plan’s review procedures
and the time limits applicable to such procedures, including a statement of the
Claimant’s right to bring a civil action under section 502(a) of The
Employee Retirement Income Security Act of 1974, as amended (“ERISA”) following
an Adverse Benefit Determination on review.


 


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A Claimant has the right to have an Adverse Benefit Determination
reviewed in accordance with the following claims review procedure:


 


·                  The Claimant must submit a written request for such review to the Plan
Administrator not later than 60 days following receipt by the Claimant of the
Adverse Benefit Determination notification;


 


·                  The Claimant shall have the opportunity to submit written comments,
documents, records, and other information relating to the claim for benefits to
the Plan Administrator;


 


·                  The Claimant shall have the right to have all comments, documents,
records, and other information relating to the claim for benefits that have
been submitted by the Claimant considered on review without regard to whether
such comments, documents, records or information was considered in the initial
benefit determination; and


 


·                  The Claimant shall
have reasonable access to, and copies of, all documents, records, and other
information relevant to the claim for benefits free of charge upon request,
including (a) documents, records or other information relied upon for the
benefit determination, (b) documents, records or other information
submitted, considered or generated without regard to whether such documents, records
or other information were relied upon in making the benefit determination, and (c) documents,
records or other information that demonstrates compliance with the standard
claims procedure.


 


Notice of the Plan
Administrator’s final benefit determination regarding an Adverse Benefit
Determination will be furnished in writing or electronically to the Claimant
after a full and fair review. Notice of an Adverse Benefit Determination upon review
will:


 


·                  State the
specific reason or reasons for the Adverse Benefit Determination;


 


·                  Provide
specific reference to pertinent Plan provisions on which the Adverse Benefit
Determination is based;


 


·                  State that the Claimant is entitled
to receive, upon request and free of charge, reasonable access to, and copies
of, all documents, records, and other information relevant to the Claimant’s
claim for benefits including (a) documents, records or other information
relied upon for the benefit determination, (b) documents, records or other
information submitted, considered or generated without regard to whether such
documents, records or other information were relied upon in making the benefit
determination, and (c) documents, records or other information that
demonstrates compliance with the standard claims procedure; and


 


·                  Describe the Claimant’s right to bring an action under section 502(a) of
ERISA.


 


The Plan
Administrator shall notify a Claimant of its determination on review with
respect to the Adverse Benefit Determination of the Claimant within a
reasonable period of time but not later than sixty days after the receipt of
the Claimant’s request for review.


 


Completion of the
claims procedures described in this Article will be a condition precedent
to the commencement of any legal or equitable action in connection with a claim
for benefits under the Plan by a Claimant or by any other person or entity
claiming rights individually or through a Claimant.


 


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TERMINATION OF PLAN
COVERAGE:


 


Your coverage under the Plan (and, therefore, your
potential eligibility for Plan severance benefits) terminates as of the date
you terminate your employment with the Employer voluntarily, by reason of death
or disability or by retirement at or after the age of 55, or on the date your
employment is involuntarily terminated for cause.


 


PLAN
AMENDMENT OR TERMINATION:


 


The Employer may
terminate, amend or modify the Plan in whole or in part at any time.  Circumstances which might cause the Employer
to amend or terminate the Plan include, but are not limited to, changes in law
mandating that the Plan be revised in certain respects, a determination by the Employer
that the Plan’s provisions or some of them may no longer be suitable as a
result of changes in the circumstances of the Employer or of its employees or
changes in financial circumstances such as significant increases in the cost of
continuing the Plan or significant adverse changes in the Employer’s financial
circumstances.


 


YOUR RIGHTS UNDER ERISA:


 


As a participant in the Plan
you are entitled to certain rights and protections under ERISA. ERISA provides
that all Plan participants shall be entitled to:


 


Receive Information About Your Plan and Benefits


 


Examine, without charge, at the Plan administrator’s
office and at other specified locations, such as worksites and union halls, all
documents governing the Plan, including insurance contracts and collective
bargaining agreements, and a copy of the latest annual report (Form 5500
Series) filed by the Plan with the U.S. Department of Labor and available at
the Public Disclosure Room of the Pension and Welfare Benefit
Administration.


 


Obtain, upon written
request to the Plan administrator, copies of documents governing the operation
of the Plan, including insurance contracts and collective bargaining
agreements, and copies of the latest annual report (Form 5500 Series) and
updated summary Plan description. The administrator may make a reasonable
charge for the copies.


 


Receive a summary of the
Plan’s annual financial report. The Plan administrator is required by law to
furnish each participant with a copy of this summary annual report.


 


Prudent Actions by Plan
Fiduciaries


 


In addition to
creating rights for Plan participants ERISA imposes duties upon the people who
are responsible for the operation of the Plan. The people who operate your
Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in
the interest of you and other Plan participants and beneficiaries. No one,
including your employer, your union, or any other person, may fire you or
otherwise discriminate against you in any way to prevent you from obtaining a
(pension, welfare) benefit or exercising your rights under ERISA.


 


Enforce Your Rights


 


If your claim for a
welfare benefit is denied or ignored, in whole or in part, you have a right to
know why this was done, to obtain copies of documents relating to the decision
without charge, and to appeal any denial, all within certain time schedules.


 


Under ERISA, there are
steps you can take to enforce the above rights. For instance, if you request a
copy of Plan documents or the latest annual report from the Plan and do not
receive them within 30 days, you may file suit in a Federal court. In such a
case, the court may require the Plan administrator to provide the materials and
pay 


 


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you up to $110(1) a day until you receive the materials, unless
the materials were not sent because of reasons beyond the control of the
administrator. If you have a claim for benefits which is denied or ignored, in
whole or in part, you may file suit in a state or Federal court. In addition,
if you disagree with the Plan’s decision or lack thereof concerning the
qualified status of a domestic relations order or a medical child support
order, you may file suit in Federal court. If it should happen that Plan
fiduciaries misuse the Plan’s money, or if you are discriminated against for
asserting your rights, you may seek assistance from the U.S. Department of
Labor, or you may file suit in a Federal court. The court will decide who
should pay court costs and legal fees. If you are successful the court may
order the person you have sued to pay these costs and fees. If you lose, the
court may order you to pay these costs and fees, for example, if it finds your
claim is frivolous.


 


Assistance with Your Questions


 


If you have any questions
about your Plan, you should contact the Plan administrator. If you have any
questions about this statement or about your rights under ERISA, or if you need
assistance in obtaining documents from the Plan administrator, you should
contact the nearest office of the Pension and Welfare Benefits Administration,
U.S. Department of Labor, listed in your telephone directory or the Division of
Technical Assistance and Inquiries, Pension and Welfare Benefits
Administration, U.S. Department of Labor, 200 Constitution Avenue N.W.,
Washington, D.C. 20210. You may also obtain certain publications about your
rights and responsibilities under ERISA by calling the publications hotline of
the Pension and Welfare Benefits Administration.


 


	
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  NAME OF PLAN:

  	
   

  	
  Pier 1 Imports Limited Severance Plan

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  PLAN YEAR:

  	
   

  	
  January 1 through December 31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  TYPE OF PLAN:

  	
   

  	
  Severance benefit welfare plan

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  PLAN SPONSOR:

  	
   

  	
  Pier 1 Imports, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Address:

  	
  100 Pier 1 Place

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Fort Worth, Texas 76102

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone Number: 817-252-8000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  EMPLOYER

  	
   

  	
   

  
	
   

  	
   

  	
  IDENTIFICATION NUMBER:

  	
   

  	
  75-1729843

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  PLAN NUMBER:

  	
   

  	
  501

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  PLAN
  ADMINISTRATOR:

  	
   

  	
  Pier 1
  Imports, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  FUNDING:

  	
   

  	
  Benefits under the Plan are paid out of the general
  assets of the Employer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  AGENT FOR SERVICE OF

  	
   

  	
  The Plan Sponsor or the Plan Administrator.

  
	
   

  	
   

  	
  LEGAL PROCESS:

  	
   

  	
  Process may be served at the addresses specified
  above.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
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  TYPE OF ADMINISTRATION:

  	
   

  	
  The Plan is administered by the Employer.

  



 






(1)  This
dollar amount is adjusted from time to time. 
You can get information at any time as to the then current dollar amount
upon request to the Plan administrator.


 


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