Exhibit 10.1
    

    
      RESTRICTED STOCK AWARD AGREEMENT
FEBRUARY 27, 2011 AWARD
    

    
      THIS RESTRICTED STOCK AWARD AGREEMENT (“Agreement”) is made
      effective and entered into as of February 27, 2011, by and
      between PIER 1 IMPORTS, INC., a Delaware corporation (the “Company”),
      and ALEXANDER W. SMITH (the “Grantee”).
    

    
      WHEREAS, pursuant to the provisions of the Pier 1 Imports, Inc. 2006
      Stock Incentive Plan, as restated and amended (the “Plan”),
      the Committee that administers the Plan has the authority to grant
      Awards under the Plan to employees of the Company; and
    

    
      WHEREAS, the Committee has determined that the Grantee be granted a
      Restricted Stock Award under the Plan for the number of shares and upon
      the terms set forth below;
    

    
      NOW, THEREFORE, the Company and the Grantee hereby agree as follows:
    

    
      1.  Grant of Award.  The Grantee is hereby granted a
      Restricted Stock Award under the Plan (this “Award”),
      subject to the terms and conditions hereinafter set forth, with respect
      to ONE HUNDRED EIGHTY-SEVEN THOUSAND FIVE HUNDRED (187,500) restricted
      shares of Common Stock.  Restricted shares of Common Stock covered by
      this Award shall be represented by a stock certificate registered in the
      Grantee’s name, or by uncertificated shares designated for the Grantee
      in book entry form on the records of the Company’s transfer agent,
      subject to the restrictions set forth in this Agreement.  Any stock
      certificate issued shall bear the following or a similar legend:
    

    
      “The transferability of this certificate and the shares of Common Stock
      represented hereby are subject to the terms, conditions and restrictions
      (including forfeiture) contained in the Pier 1 Imports, Inc. 2006 Stock
      Incentive Plan, as restated and amended and the Restricted Stock Award
      Agreement entered into between the registered owner and Pier 1 Imports,
      Inc.  A copy of such plan and agreement is on file in the offices of
      Pier 1 Imports, Inc., 100 Pier 1 Place, Fort Worth, Texas 76102.”
    

    
      Any Common Stock certificates or book-entry uncertificated shares
      evidencing such shares shall be held in custody by the Company or, if
      specified by the Committee, with a third party custodian or trustee,
      until the restrictions thereon shall have lapsed, and, as a condition of
      this Award, the Grantee shall deliver a stock power, duly endorsed in
      blank, relating to any certificated restricted shares of Common Stock
      covered by this Award.
    

    
      2.  Transfer Restrictions.  Except as expressly
      provided herein, this Award and the restricted shares of Common Stock
      issued with respect to this Award are non-transferable otherwise than by
      will or by the laws of descent and distribution, and may not otherwise
      be assigned, pledged or hypothecated or otherwise disposed of and shall
      not be subject to execution, attachment or similar process.  Upon any
      attempt to effect any such disposition, or upon the levy of any such
      process, this Award shall immediately become null and void and the
      restricted shares of Common Stock relating thereto shall be forfeited.
    

    

    

    
      
        

        

      

      
        
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      3.  Restrictions.  The restrictions on the shares of
      Common Stock covered by this Award shall lapse and such shares shall
      vest at the rate of:
    

    
      (i)       SIXTY-TWO THOUSAND FIVE HUNDRED (62,500) shares on February
      25, 2012, provided that Grantee is employed by the Company on such date,
    

    
      (ii)      SIXTY-TWO THOUSAND FIVE HUNDRED (62,500) shares on March 2,
      2013, provided that Grantee is employed by the Company on such date, and
    

    
      (iii)     SIXTY-TWO THOUSAND FIVE HUNDRED (62,500) shares on March 1,
      2014, provided that Grantee is employed by the Company on such date.
    

    
       The employment of the Grantee with the Company is governed by the terms
      and provisions of the Employment Agreement between the Company and the
      Grantee dated December 15, 2009 (the “Employment Agreement”). If
      Grantee's employment is terminated by the Company for “Cause” or by
      Grantee without “Good Reason” (as such terms are defined in the
      Employment Agreement), the Common Stock covered by this Award, to the
      extent not vested, shall terminate and be forfeited by the Grantee.  If
      Grantee's employment is terminated by the Company without Cause or by
      Grantee for Good Reason then any portion of the Common Stock covered by
      this Award, to the extent not vested as of the termination date, shall
      become vested and unrestricted as of such termination date. Upon
      “Non-Renewal by the Company” (as such term is defined in the Employment
      Agreement) then any portion of the Common Stock covered by this Award,
      to the extent not vested, shall become vested and unrestricted on the
      expiration of the Term (as such term is defined in the Employment
      Agreement). All rights and ownership in the shares of Common Stock
      covered by this Award as to which the restrictions thereon shall not
      have lapsed shall immediately vest in the Company.  
    

    
      4.  Voting and Dividend Rights.  During the period in
      which the restrictions provided herein are applicable to the Common
      Stock covered by this Award, the Grantee shall have the right to vote
      such shares and to receive any cash dividends paid with respect to such
      shares.  Any dividend or distribution payable with respect to restricted
      shares of Common Stock covered by this Award that shall be paid in
      shares of Common Stock shall be subject to the same restrictions
      provided for herein. Any dividend or distribution (other than cash or
      Common Stock) payable on shares of the restricted shares of Common Stock
      covered by this Award, and any consideration receivable for or in
      conversion of or exchange for the restricted shares of Common Stock
      covered by this Award, unless otherwise determined by the Committee,
      shall be subject to the terms and conditions of this Restricted Stock
      Award Agreement or with such modifications thereof as the Committee may
      provide in its absolute discretion.
    

    
      5.  Distribution Following End of Restrictions.  Upon
      the expiration of the restrictions provided in Section 3 hereof as to
      any portion of the restricted shares of Common Stock covered by this
      Award, the Company in its sole discretion will either cause a
      certificate evidencing such amount of Common Stock to be delivered to
      the Grantee (or, in the case of his death after such events, cause such
      certificate to be delivered to Grantee's legal representative,
      beneficiary or heir) or provide book-entry uncertificated shares
      designated for the Grantee (or, in the case of his death after such
      events, provide book-entry uncertificated shares designated for
      Grantee's legal representative, beneficiary or heir) on the records of
      the Company’s transfer agent free of the legend or restriction regarding
      transferability, as the case may be; provided, however, that the
      Company shall not be obligated to issue any fractional shares of Common
      Stock in the event of certificated shares.
    

    
      
        

        

      

      
        
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      6.  Tax Withholding.  The obligation of the Company to
      deliver any certificate or book-entry uncertificated shares to the
      Grantee pursuant to Section 5 hereof shall be subject to the receipt by
      the Company from the Grantee of any minimum withholding taxes required
      as a result of the grant of the Award or lapsing of restrictions
      thereon.  The Grantee may satisfy all or part of such withholding tax
      requirement by electing to require the Company to purchase that number
      of unrestricted shares of Common Stock designated by the Grantee at a
      price equal to the Fair Market Value on the date of lapse of the
      restrictions or, if the Common Stock did not trade on such day, on the
      first preceding day on which trading occurred.  The Company shall have
      the right, but not the obligation, to sell or withhold such number of
      unrestricted shares of Common Stock distributable to the Grantee as will
      provide assets for payment of any tax so required to be paid by the
      Company for Grantee unless, prior to such sale or withholding, Grantee
      shall have paid to the Company the amount of such tax.  Any balance of
      the proceeds of such a sale remaining after the payment of such taxes
      shall be paid over to Grantee.  In making any such sale, the Company
      shall be deemed to be acting on behalf and for the account of Grantee.
    

    
      7.  Securities Laws Requirements.  The Company shall
      not be required to issue shares pursuant to this Award unless and until
      (a) such shares have been duly listed upon each stock exchange on which
      the Company’s Common Stock is then listed; and (b) the Company has
      complied with applicable federal and state securities laws.  The
      Committee may require the Grantee to furnish to the Company, prior to
      the issuance of any shares of Common Stock in connection with this
      Award, an agreement, in such form as the committee may from time to time
      deem appropriate, in which the Grantee represents that the shares
      acquired by him under this Award are being acquired for investment and
      not with a view to the sale or distribution thereof.
    

    
      8.  Incorporation of Plan Provisions.  This Restricted
      Stock Award Agreement is made pursuant to the Plan and is subject to all
      of the terms and provisions of the Plan as if the same were fully set
      forth herein, and receipt of a copy of the Plan is hereby
      acknowledged.  Capitalized terms not otherwise defined herein shall have
      the same meanings set forth for such terms in the Plan.
    

    
      9.  Miscellaneous.  This Restricted Stock Award
      Agreement (a) shall be binding upon and inure to the benefit of any
      successor of the Company, (b) shall be governed by the laws of the State
      of Delaware, and any applicable laws of the United States, and (c) may
      not be amended without the written consent of both the Company and the
      Grantee.  
    

    
      IN WITNESS WHEREOF, the parties hereto have executed this Restricted
      Stock Award Agreement on the date first above written.
    

    

    


    	
          COMPANY:
        	
           
        	
          GRANTEE:
        
	

        	

        	

        	
           
        
	
          Pier 1 Imports, Inc.
        	

        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	
          
            By:
          

        	
          
             
          

        	

        	
           
        
	

        	
          Michael A. Carter
        	

        	
          Alexander W. Smith
        
	

        	
          Senior Vice President and General
        	

        	

        
	

        	
          Counsel, Secretary
        	

        	

        


    

    
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