Document:

Exhibit 10.1
    

    
      PIER 1 IMPORTS, INC. 2015 STOCK
      INCENTIVE PLAN

      (Omnibus Plan)

    

    

    

    

    
      I. PURPOSE OF THE PLAN 
    

    
      The purpose of the PIER 1 IMPORTS, INC. 2015 STOCK INCENTIVE PLAN
      (the “Plan”) is to provide a means through which PIER 1
      IMPORTS, INC., a Delaware corporation (the “Company”), and its
      Affiliates may attract able persons to serve as Directors or to enter
      the employ of the Company and its Affiliates and to provide a means
      whereby those individuals upon whom the responsibilities of the
      successful administration and management of the Company and its
      Affiliates rest, and whose present and potential contributions to the
      Company and its Affiliates are of importance, can acquire and maintain
      stock ownership, thereby strengthening their concern for the welfare of
      the Company and its Affiliates. A further purpose of the Plan is to
      provide such individuals with additional incentive and reward
      opportunities designed to enhance the profitable growth of the Company
      and its Affiliates. Accordingly, the Plan provides for granting
      Incentive Stock Options, options that do not constitute Incentive Stock
      Options, Restricted Stock Awards, Restricted Stock Unit Awards,
      Performance Awards, and Phantom Stock Awards, or any combination of the
      foregoing, as is best suited to the circumstances of the particular
      employee or Director as provided herein. The Plan also provides for
      granting Director Deferred Stock Units to Directors who are not
      employees of the Company.
    

    
      II. DEFINITIONS 
    

    
      The following definitions shall be applicable throughout the Plan:
    

    
      (a) “Affiliate” means any corporation,
      partnership, limited liability company or partnership, association,
      trust or other organization which, directly or indirectly, controls, is
      controlled by, or is under common control with, the Company. For
      purposes of the preceding sentence, “control” (including, with
      correlative meanings, the terms “controlled by” and “under common
      control with”), as used with respect to any entity or organization,
      shall mean the possession, directly or indirectly, of the power (i) to
      vote more than fifty percent (50%) of the securities having ordinary
      voting power for the election of directors of the controlled entity or
      organization, or (ii) to direct or cause the direction of the management
      and policies of the controlled entity or organization, whether through
      the ownership of voting securities or by contract or otherwise.
    

    
      (b) “Award” means, individually or
      collectively, any Option, Stock Appreciation Right, Restricted Stock
      Award, Restricted Stock Unit Award, Performance Award, Phantom Stock
      Award or Director Deferred Stock Unit Award.
    

    
      (c) “Board” means the Board of Directors of
      the Company.
    

    
      (d) “Code” means the Internal Revenue Code of
      1986, as amended. Reference in the Plan to any section of the Code shall
      be deemed to include any amendments or successor provisions to such
      section and any regulations under such section.
    

    
      (e) “Committee” means the Compensation
      Committee of the Board unless another committee is designated by the
      Board as provided in Paragraph IV(a).
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (f) “Common Stock” means the common stock, par
      value $0.001 per share, of the Company or any security into which such
      common stock may be changed by reason of any transaction or event of the
      type described in Paragraph XII.
    

    
      (g) “Company” means Pier 1 Imports, Inc., a
      Delaware corporation.
    

    
      (h) “Corporate Change” shall mean any of the
      following events: (i) the consummation of a merger or consolidation to
      which the Company is a party if the stockholders of the Company who were
      stockholders of the Company immediately prior to the effective date of
      such merger or consolidation have beneficial ownership (as defined in
      Rule 13d-3 under the Exchange Act) of less than fifty percent (50%) of
      the total combined voting power for election of directors of the
      surviving corporation or other entity following the effective date of
      such merger or consolidation; (ii) the date of the acquisition or
      holding of direct or indirect beneficial ownership (as defined in Rule
      13d-3 under the Exchange Act) of securities of the Company representing
      in the aggregate thirty percent (30%) or more of the total combined
      voting power of the Company’s then issued and outstanding voting
      securities by any person, entity or group of associated persons or
      entities acting in concert, other than any employee benefit plan of the
      Company or of any subsidiary of the Company or any entity holding such
      securities for or pursuant to the terms of any such plan; (iii) the date
      of the election of members of the Board at a meeting of stockholders or
      by written consent, the majority of which were not nominated by the
      Board or a committee of the Board; (iv) the consummation of the sale of
      all or substantially all of the assets of the Company to any person or
      entity that is not a wholly owned subsidiary of the Company; or (v) the
      date of the approval by the stockholders of the Company of any plan or
      proposal for the liquidation of the Company or of its subsidiaries
      (other than into the Company).
    

    
      (i) “Director” means an individual who is a
      member of the Board.
    

    
      (j) “Director Annual Retainer Payment” means
      the portion of a Director Compensation Payment that includes the
      Director’s base annual retainer payment, excluding any payments for
      meeting fees and/or retainer payments for any committee chair position
      or the chairman of the board position.
    

    
      (k) “Director Compensation Payment” means a
      payment to a Director of a Director’s retainer fee or a Director’s
      meeting fee.
    

    
      (l) “Director Deferred Stock Unit Award” means
      an Award of deferred stock units granted under Paragraph XI of the Plan.
    

    
      (m) “Effective Date” means the date of
      approval of this Plan by the Company stockholders which date is June 25,
      2015.
    

    
      (n) An “employee” means any person (including
      a Director) in an employment relationship with the Company or any
      Affiliate.
    

    
      (o) “Exchange Act” means the Securities
      Exchange Act of 1934, as amended.
    

    
      (p) “Fair Market Value” of the Common Stock on
      any date means the closing sale price per share (or if no closing sale
      price is reported, the average of the bid and ask prices or, if more
      than one in either case, the average of the average bid and the average
      ask prices) on that date as reported in the composite transactions table
      for the principal U.S. national or regional securities exchange on which
      the Common Stock is listed for trading. The “Fair Market Value” will be
      determined without reference to after-hours or extended market trading.
      If the Common Stock is not listed for trading on a U.S. national or
      regional securities exchange on the relevant date, then the “Fair Market
      Value” of the Common Stock will be the average of the bid and ask prices
      (or, if more than one in either case, the average of the average bid and
      the average ask prices) for the Common Stock in the over-the-counter
      market on the relevant date as reported by Pink OTC Markets Inc. or
      similar organization. If the Common Stock is not so quoted, the “Fair
      Market Value” of the Common Stock will be such other amount as the
      Committee may ascertain reasonably to represent such “Fair Market
      Value.” All such determinations of “Fair Market Value” shall be in
      accordance with the requirements of Treasury Regulation
      section 1.409A-1(b)(5)(iv), or its successor.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (q) “Incentive Stock Option” means an
      incentive stock option within the meaning of section 422 of the Code.
    

    
      (r) “Option” means an Award granted under
      Paragraph VII of the Plan and includes both Incentive Stock Options to
      purchase Common Stock and options that do not constitute Incentive Stock
      Options to purchase Common Stock.
    

    
      (s) “Option Agreement” means a written
      agreement between the Company and a Participant with respect to an
      Option.
    

    
      (t) “Participant” means an employee or
      Director who has been granted an award.
    

    
      (u) “Performance Award” means an Award granted
      under Paragraph IX of the Plan.
    

    
      (v) “Performance Award Agreement” means a
      written agreement between the Company and a Participant with respect to
      a Performance Award.
    

    
      (w) “Performance Measures” means performance
      measures established by the Committee that are based on one or more,
      either individually, alternatively or in any combination, of (1) the
      Fair Market Value of Common Stock, (2) the Company’s earnings per share,
      (3) the Company’s or an Affiliate’s market share, (4) the market share
      of a business unit and/or retail channel, division or other operation of
      the Company designated by the Committee, (5) the Company’s or an
      Affiliate’s sales, (6) the sales of a business unit and/or sales through
      a retail channel, or sales through a division or other operation of the
      Company designated by the Committee, (7) the net income of the Company,
      an Affiliate, business unit, retail channel, division or other operation
      of the Company designated by the Committee, (8) the cash flow (including
      one or more of cash flows from operating, investing and financing
      activities) or return on investment of the Company, an Affiliate,
      business unit, retail channel, division or other operation of the
      Company designated by the Committee, (9) the earnings or income before
      or after interest, taxes, depreciation, and/or amortization of the
      Company, an Affiliate, business unit, retail channel, division or other
      operation of the Company designated by the Committee (including but not
      limited to earnings [including one or more of net profit after tax;
      gross profit; operating profit; earnings before interest; earnings
      before interest and taxes; earnings before interest, taxes and
      depreciation; earnings before interest, taxes, depreciation and
      amortization; and net earnings], earnings per share, earnings per share
      from continuing operations, operating income, pre-tax income, operating
      income margin, net income and margins [including one or more of gross,
      operating and net income margins]), (10) economic value (measured by
      factors such as sales, revenues, costs, expenses, returns [including one
      or more of return on actual or proforma assets, net assets, non-cash
      assets, equity, common equity, investment, capital, invested capital,
      and net capital employed], economic value added, cash generation, cost
      reductions, unit volume, working capital and strategic plan development
      and implementation), (11) the return on capital, invested capital,
      assets or stockholders’ equity achieved by the Company or an Affiliate,
      or (12) the total stockholders’ return (including total stockholder
      return relative to an index or peer group) achieved by the Company.
      Performance Measures established for an Award may thereafter be subject
      to adjustment for specified significant unusual or non-recurring or
      recurring non-cash items or events, including but not limited to
      (a) asset write-downs; (b) litigation or claim judgments or settlements;
      (c) the effect of changes in tax laws, accounting principles or other
      laws or provisions affecting reported results; (d) any reorganization
      and restructuring programs; (e) extraordinary non-recurring items as
      described in Accounting Principles Board Opinion No. 30 (now codified as
      the Financial Accounting Standards Board’s Accounting Codification
      Standards subtopic 225-20, Extraordinary and Unusual Items) and/or
      unusual or non-recurring items discussed in management’s discussion and
      analysis of financial condition and results of operations appearing in
      the Company’s annual report to shareholders for the applicable year;
      (f) discontinued operations, acquisitions or divestitures; and
      (g) foreign exchange and/or currency translation gains and losses. To
      the extent any such adjustment is to be effected with respect to an
      Award, it shall be prescribed in a form that meets the requirements of
      section 162(m) of the Code for deductibility if the Committee, in its
      sole discretion, determines that loss of deductibility is a significant
      exposure for the Company. The Performance Measures may be absolute,
      relative to one or more other companies, relative to one or more
      indexes, or relative to one or more index or peer group, and may be
      contingent upon future performance of the Company or any Affiliate,
      division (including business units and lines of business), or department
      thereof.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (x) “Phantom Stock Award” means an Award
      granted under Paragraph X of the Plan.
    

    
      (y) “Phantom Stock Award Agreement” means a
      written agreement between the Company and a Participant with respect to
      a Phantom Stock Award.
    

    
      (z) “Plan” means the Pier 1 Imports, Inc. 2015
      Stock Incentive Plan (Omnibus Plan), as amended from time to time.
    

    
      (aa) “Prior Plan” means the Pier 1 Imports,
      Inc. 2006 Stock Incentive Plan (Omnibus Plan).
    

    
      (bb) “Restricted Stock Award” means an Award
      of restricted stock granted under Paragraph VIII of the Plan.
    

    
      (cc) “Restricted Stock Award Agreement” means
      a written agreement between the Company and a Participant with respect
      to a Restricted Stock Award.
    

    
      (dd) “Restricted Stock Unit Award” means an
      Award of restricted stock units granted under Paragraph VIII of the Plan.
    

    
      (ee) “Restricted Stock Unit Award Agreement”
      means a written agreement between the Company and a Participant with
      respect to a Restricted Stock Unit Award.
    

    
      (ff) “Rule 16b-3” means SEC Rule 16b-3
      promulgated under the Exchange Act, as such may be amended from time to
      time, and any successor rule, regulation or statute fulfilling the same
      or a similar function.
    

    
      (gg) “Stock Appreciation Right” means a right
      to acquire, upon exercise of the right, Common Stock and/or, in the sole
      discretion of the Committee, cash having an aggregate value equal to the
      then excess of the Fair Market Value of the shares with respect to which
      the right is exercised over the exercise price therefor.
    

    
      III. EFFECTIVE DATE AND DURATION OF THE PLAN 
    

    
      The Plan was approved and adopted by the Board on April 2, 2015, subject
      to approval by the stockholders of the Company at the Annual Meeting of
      Shareholders to be held on June 25, 2015, or any adjournment or
      postponement of the meeting. The date of the approval of Plan by the
      Company’s stockholders shall be the Effective Date of the Plan and that
      date shall be inserted in the definition of “Effective Date” above. No
      further Awards may be granted under the Plan after ten (10) years from
      the Effective Date. The Plan shall remain in effect until all Options
      granted under the Plan have been exercised or expired, all Restricted
      Stock Awards and all Restricted Stock Unit Awards granted under the Plan
      have vested or been forfeited, all Performance Awards and Phantom Stock
      Awards have been satisfied, expired, or forfeited and all Director
      Deferred Stock Unit Awards have been satisfied.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      IV. ADMINISTRATION 
    

    
      (a) Composition of Committee. The Plan shall be
      administered by a committee of, and appointed by, the Board or any duly
      appointed subcommittee of the Committee, that shall be comprised solely
      of two (2) or more outside Directors (within the meaning of the term
      “outside directors” as used in section 162(m) of the Code and applicable
      interpretive authority thereunder and within the meaning of the term
      “Non-Employee Director” as defined in Rule 16b-3 promulgated under the
      Exchange Act).
    

    
      (b) Powers. Subject to the express provisions of the Plan,
      the Committee shall have authority, in its discretion, to determine
      which employees or Directors shall receive an Award, the time or times
      when such Award shall be made, the type of Award that shall be made, the
      number of shares to be subject to each Option, Restricted Stock Award or
      Restricted Stock Unit Award, the number of shares subject to or the
      value of each Performance Award, and the value of each Phantom Stock
      Award. In making such determinations, the Committee shall take into
      account the nature of the services rendered by the respective employees
      or Directors, their present and potential contribution to the Company’s
      success and such other factors as the Committee in its sole discretion
      shall deem relevant.
    

    
      (c) Additional Powers. The Committee shall have such
      additional powers as are delegated to it by the other provisions of the
      Plan. Subject to the express provisions of the Plan, this shall include
      the power to construe the Plan and the respective agreements executed
      hereunder, to prescribe rules and regulations relating to the Plan, and
      to determine the terms, restrictions and provisions of the agreement
      relating to each Award, including such terms, restrictions and
      provisions as shall be requisite in the judgment of the Committee to
      cause designated Options to qualify as Incentive Stock Options, and to
      make all other determinations necessary or advisable for administering
      the Plan. The Committee may correct any defect or supply any omission or
      reconcile any inconsistency in the Plan or in any agreement relating to
      an Award in the manner and to the extent it shall deem expedient to
      carry it into effect. The determinations of the Committee on the matters
      referred to in this Paragraph IV shall be conclusive.
    

    
      (d) Delegation of Powers. The Committee may from time to
      time and in its sole discretion delegate any and all of its powers to
      the Chief Executive Officer of the Company or to an officer or a group
      of officers of the Company; provided, however, that the Committee shall
      not delegate any powers or responsibilities if such delegation would
      result or potentially result in an Award which is intended to qualify as
      performance-based compensation for purposes of section 162(m) of the
      Code failing to qualify as such performance-based compensation. The
      powers of delegation pursuant to this paragraph include but are not
      limited to the Committee’s powers to administer the Plan, to interpret
      provisions of the Plan and to grant Awards under the Plan, insofar as
      such administration, interpretation and power to grant Awards relates to
      any person who is not subject to Section 16 of the Exchange Act
      (including any successor section to the same or similar effect). The
      Committee may revoke any delegation of its powers at any time and may
      put any conditions or restrictions on any powers which it has delegated
      as it determines in its sole discretion. In the event of any conflict in
      a determination or interpretation under the Plan as between the
      Committee and a person or group of persons to whom powers of
      determination or interpretation have been delegated by the Committee,
      the determination or interpretation, as applicable, of the Committee
      shall be conclusive.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      V. SHARES SUBJECT TO THE PLAN; AWARD LIMITS; GRANT OF AWARDS 
    

    
      (a) Shares Subject to the Plan and Award Limits. Subject
      to adjustment in the same manner as provided in Paragraph XII(b), the
      aggregate number of shares of Common Stock that may be issued under the
      Plan shall not exceed (i) 2,500,000 shares plus (ii) the number of
      shares of Common Stock which remained available for grant under the
      Prior Plan as of the Effective Date (which amount is 2,924,592 shares as
      of April 27, 2015) increased by the number of shares of Common Stock
      subject to outstanding awards, as of the Effective Date, under the Prior
      Plan (which amount is 3,551,658 shares as of April 27, 2015) that on or
      after the Effective Date cease for any reason to be subject to such
      awards (other than by reason of exercise or settlement of the awards to
      the extent they are exercised for or settled in vested and
      nonforfeitable shares of Common Stock). The aggregate maximum number of
      shares of Common Stock that may be issued under the Plan through
      Incentive Stock Options shall not exceed 2,500,000 shares. Shares shall
      be deemed to have been issued under the Plan only to the extent actually
      granted pursuant to an Award; provided, however, that the Committee
      shall not grant any Award which potentially will result in the issuance
      of shares of Common Stock if such issuance would cause the Plan to
      exceed the limits described in the preceding two sentences if all
      Options then outstanding were exercised in full by participants. To the
      extent that an Award lapses or the rights of its holder terminate, any
      shares of Common Stock subject to such Award shall again be available
      for the grant of an Award under the Plan. Notwithstanding the foregoing,
      the following shares of Common Stock shall not again be available for
      the grant of an Award under the Plan: (y) shares surrendered in payment
      of the exercise price or purchase price of an Award and (z) shares
      withheld for payment of applicable employment taxes and/or withholding
      obligation associated with an Award. Notwithstanding any provision in
      the Plan to the contrary, the maximum number of shares of Common Stock
      that may be subject to Awards denominated in shares of Common Stock
      granted to any one individual during any calendar year may not exceed
      750,000 shares of Common Stock (subject to adjustment in the same manner
      as provided in Paragraph XII(b)) and the maximum amount of compensation
      that may be paid under all Performance Awards denominated in cash
      (including the Fair Market Value of any shares of Common Stock paid in
      satisfaction of such Performance Awards) granted to any one individual
      during any calendar year may not exceed $4 million. The limitations set
      forth in the preceding sentence shall be applied in a manner that will
      permit awards that are intended to provide “performance-based”
      compensation for purposes of section 162(m) of the Code to satisfy the
      requirements of such section, including, without limitation, counting
      against such maximum number of shares, to the extent required under
      section 162(m) of the Code and applicable interpretive authority
      thereunder, any shares subject to Options that are canceled.
    

    
      (b) Grant of Awards. The Committee may from time to time
      grant Awards to one or more employees or Directors determined by it to
      be eligible for participation in the Plan in accordance with the terms
      of the Plan.
    

    
      (c) Stock Offered. Subject to the limitations set forth in
      Paragraph V(a), the stock to be offered pursuant to the grant of an
      Award may be authorized but unissued Common Stock or Common Stock
      previously issued and outstanding and reacquired by the Company. Any of
      such shares which remain unissued and which are not subject to
      outstanding Awards at the termination of the Plan shall cease to be
      subject to the Plan but, until termination of the Plan, the Company
      shall at all times make available a sufficient number of shares to meet
      the requirements of the Plan.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      VI. ELIGIBILITY 
    

    
      Awards may be granted only to persons who, at the time of grant, are
      employees or Directors. An Award may be granted on more than one
      occasion to the same person, and, subject to the limitations and
      restrictions set forth in the Plan, such Award may include an Incentive
      Stock Option, an Option that is not an Incentive Stock Option, a
      Restricted Stock Award, a Restricted Stock Unit Award, a Performance
      Award, a Phantom Stock Award, a Director Deferred Stock Unit Award or
      any combination thereof.
    

    
      VII. STOCK OPTIONS 
    

    
      (a) Option Period. The term of each Option shall be ten
      (10) years from the date of grant, unless a shorter term is specified by
      the Committee at the time of grant. No option shall be exercisable after
      ten (10) years from the date of grant.
    

    
      (b) Limitations on Exercise of Option. An Option shall be
      exercisable in whole or in such installments and at such times as
      determined by the Committee; provide, however, no Option will be
      exercisable prior to the expiration of a one year period from the date
      of grant unless exercisable by retirement, death or disability as
      specified in an Option Agreement.
    

    
      (c) Special Limitations on Incentive Stock Options. An
      Incentive Stock Option may be granted only to an individual who is
      employed by the Company or any parent or subsidiary corporation (as
      defined in section 424 of the Code) at the time the Option is granted.
      To the extent that the aggregate Fair Market Value (determined at the
      time the respective Incentive Stock Option is granted) of stock with
      respect to which Incentive Stock Options are exercisable for the first
      time by an individual during any calendar year under all incentive stock
      option plans of the Company and its parent and subsidiary corporations
      exceeds $100,000, such Incentive Stock Options shall be treated as
      Options which do not constitute Incentive Stock Options. The Committee
      shall determine, in accordance with applicable provisions of the Code,
      Treasury Regulations and other administrative pronouncements, which of a
      Participant’s Incentive Stock Options will not constitute Incentive
      Stock Options because of such limitation and shall notify the
      Participant of such determination as soon as practicable after such
      determination. No Incentive Stock Option shall be granted to an
      individual if, at the time the Option is granted, such individual owns
      stock possessing more than ten percent (10%) of the total combined
      voting power of all classes of stock of the Company or of its parent or
      subsidiary corporation, within the meaning of section 422(b)(6) of the
      Code, unless (i) at the time such Option is granted the option price is
      at least one hundred ten percent (110%) of the Fair Market Value of the
      Common Stock subject to the Option and (ii) such Option by its terms is
      not exercisable after the expiration of five years from the date of
      grant. Except as otherwise provided in sections 421 or 422 of the Code,
      an Incentive Stock Option shall not be transferable otherwise than by
      will or the laws of descent and distribution, and shall be exercisable
      during the Participant’s lifetime only by such Participant or the
      Participant’s guardian or legal representative.
    

    
      (d) Option Agreement. Each Option shall be evidenced by an
      Option Agreement in such form and containing such provisions not
      inconsistent with the provisions of the Plan as the Committee from time
      to time shall approve, including, without limitation, provisions to
      qualify an Option as an Incentive Stock Option under section 422 of the
      Code. Each Option Agreement shall specify the effect of termination of
      employment or service as a Director (by retirement, disability, death or
      otherwise), as applicable, on the exercisability of the Option. An
      Option Agreement may provide for the payment of the option price, in
      whole or in part, by the delivery of a number of shares of Common Stock
      (plus cash if necessary) having a Fair Market Value equal to such option
      price. Moreover, an Option Agreement may provide for a “cashless
      exercise” or “net share exercise” of the Option by establishing
      procedures satisfactory to the Committee with respect thereto. The terms
      and conditions of Option Agreements need not be identical. Subject to
      the consent of the Participant, except where such consent is not
      required pursuant to Paragraph XII(c), the Committee may, in its sole
      discretion, amend an outstanding Option Agreement from time to time in
      any manner that is not inconsistent with the provisions of the Plan
      (including, without limitation, an amendment that accelerates the time
      at which the Option, or a portion thereof, may be exercisable).
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (e) Option Price and Payment. The price at which a share
      of Common Stock may be purchased upon exercise of an Option shall be
      determined by the Committee but, subject to adjustment as provided in
      Paragraph XII(b), such purchase price shall not be less than the Fair
      Market Value of a share of Common Stock on the date such Option is
      granted. The Option or portion thereof may be exercised by delivery of
      an irrevocable notice of exercise to the Company, as specified by the
      Committee. The purchase price of the Option or portion thereof shall be
      paid in full in the manner prescribed by the Committee. Separate stock
      certificates shall be issued by the Company for those shares acquired
      pursuant to the exercise of an Incentive Stock Option and for those
      shares acquired pursuant to the exercise of any Option that does not
      constitute an Incentive Stock Option, to the extent the Company issues
      stock certificates in lieu of uncertificated shares designated to a
      grantee in book-entry form on the records of the Company’s transfer
      agent.
    

    
      (f) Restrictions on Repricing of Options. Except as
      provided in Paragraph XII, the Committee may not, without approval of
      the stockholders of the Company, seek to effect any re-pricing of any
      previously granted “underwater” Option or Stock Appreciation Right by:
      (i) amending or modifying the terms of the Option or Stock Appreciation
      Right to lower the exercise price; (ii) cancelling the underwater Option
      or Stock Appreciation Right and granting either (A) replacement Options
      or Stock Appreciation Rights having a lower exercise price; or
      (B) Restricted Stock, Restricted Stock Units, Performance Award or
      Phantom Stock Award in exchange; or (iii) cancelling or repurchasing the
      underwater Options or Stock Appreciation Rights for cash or other
      securities. An Option or Stock Appreciation Right will be deemed to be
      “underwater” at any time when the Fair Market Value of the Company
      Common Stock covered by such Award is less than the exercise price of
      the Award.
    

    
      (g) Stockholder Rights and Privileges. The Participant
      shall be entitled to all the privileges and rights of a stockholder only
      with respect to such shares of Common Stock as have been purchased upon
      exercise of the Option and for which certificates of stock have been
      registered in the Participant’s name.
    

    
      (h) Options and Rights in Substitution for Options Granted by
      Other Employers. Options and Stock Appreciation Rights may be
      granted under the Plan from time to time in substitution for options and
      such rights held by individuals providing services to corporations or
      other entities who become employees or Directors as a result of a merger
      or consolidation or other business transaction with the Company or any
      Affiliate.
    

    
      (i) No Dividend Equivalents. No grant of an Option
      or Stock Appreciation Right may provide for dividends, dividend
      equivalents or other similar distributions to be paid on such Option or
      Stock Appreciation Right.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      VIII. RESTRICTED STOCK AND RESTRICTED STOCK UNIT AWARDS 
    

    
      (a) Forfeiture Restrictions to be Established by the Committee.
      Restricted Stock Unit Awards and shares of Common Stock that are the
      subject of a Restricted Stock Award shall be subject to restrictions on
      disposition by the Participant and an obligation of the Participant to
      forfeit the units or forfeit and surrender the shares to the Company
      under certain circumstances (the “Forfeiture Restrictions”). The
      Forfeiture Restrictions shall be determined by the Committee in its sole
      discretion, and the Committee may provide that the Forfeiture
      Restrictions applicable to an Award shall lapse upon (i) the attainment
      of one or more Performance Measures, (ii) the Participant’s continued
      employment with the Company or continued service as a Director for a
      specified period of time, (iii) the occurrence of any event or the
      satisfaction of any other condition specified by the Committee in its
      sole discretion, or (iv) a combination of any of the foregoing. Each
      Restricted Stock Award and each Restricted Stock Unit Award may have
      different Forfeiture Restrictions, in the discretion of the Committee.
      In no event shall the Forfeiture Restrictions with respect to a
      Restricted Stock Award or a Restricted Stock Unit Award lapse in full
      prior to the expiration of (i) a one-year period following the date of
      grant of the Award in the case of Forfeiture Restrictions that lapse
      upon the attainment of one or more Performance Measures or (ii) a
      three-year period following the date of grant of the Award in the case
      of Forfeiture Restrictions that lapse other than upon the attainment of
      one or more Performance Measures.
    

    
      (b) Restricted Stock Award Terms and Conditions. Common
      Stock awarded pursuant to a Restricted Stock Award shall be represented
      by a stock certificate registered in the name of the Participant or by
      uncertificated shares designated for such Participant in book-entry form
      on the records of the Company’s transfer agent for Common Stock. Any
      stock certificate issued with respect to a Restricted Stock Award 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. 2015 Stock Incentive Plan 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 office 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’s transfer agent. Unless provided otherwise in a Restricted
      Stock Award Agreement, the Participant shall have the right to vote
      Common Stock subject thereto and to enjoy all other stockholder rights,
      except that (i) the Participant shall not be entitled to delivery of the
      stock certificate until the Forfeiture Restrictions have expired,
      (ii) the Company shall retain custody of the stock until the Forfeiture
      Restrictions have expired, (iii) the Participant may not sell, transfer,
      pledge, exchange, hypothecate or otherwise dispose of the stock until
      the Forfeiture Restrictions have expired, and (iv) a breach of the terms
      and conditions established by the Committee pursuant to the Restricted
      Stock Award Agreement shall cause a forfeiture of the Restricted Stock
      Award. At the time of such Award, the Committee may, in its sole
      discretion, prescribe additional terms, conditions or restrictions
      relating to Restricted Stock Awards, including, but not limited to,
      rules pertaining to the termination of employment or service as a
      Director (by retirement, disability, death or otherwise) or Participant
      prior to expiration of the Forfeitures Restrictions. Such additional
      terms, conditions or restrictions shall be set forth in a Restricted
      Stock Award Agreement made in conjunction with the Award.
      Notwithstanding the foregoing, a Participant shall not have the
      right to receive dividends with respect to Common Stock subject to a
      Restricted Stock Award.
    

    
      (c) Payment for Restricted Stock. The Committee shall
      determine the amount and form of any payment for Common Stock received
      pursuant to a Restricted Stock Award, provided that in the absence of
      such a determination, a Participant shall not be required to make any
      payment for Common Stock received pursuant to a Restricted Stock Award,
      except to the extent otherwise required by law.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (d) Restricted Stock Unit Award Terms and Conditions. A
      Restricted Stock Unit Award is a right to receive cash or shares of
      Common Stock based upon a bookkeeping entry referencing a value
      expressed by reference to shares of Common Stock and subject to
      forfeiture pursuant to Forfeiture Restrictions. A Participant shall have
      no right to receive dividends or any other right and privilege of a
      shareholder with respect to Common Stock which is the measure of a
      Restricted Stock Unit Award. At the time of grant of a Restricted Stock
      Unit Award, the Committee may, in its sole discretion prescribe
      additional terms, conditions or restrictions relating to the Awards,
      including, but not limited to, rules pertaining to the termination of
      employment or service as a Director (by retirement, disability, death or
      otherwise) or Participant prior to expiration of the Forfeiture
      Restrictions. Such additional terms, conditions or restrictions shall be
      set forth in a Restricted Stock Unit Award Agreement made in conjunction
      with the Award.
    

    
      (e) Committee’s Discretion to Accelerate Vesting of Restricted
      Stock Awards and Restricted Stock Unit Awards. Except as it
      would cause Plan or Award failure under section 409A of the Code, the
      Committee may, in its sole discretion and as of a date determined by the
      Committee, upon the occurrence of a Participant’s death, disability,
      retirement, or termination without cause, fully vest any or all Common
      Stock awarded to a Participant pursuant to a Restricted Stock Award or
      any or all Restricted Stock Unit Awards of a Participant which are then
      still subject to Forfeiture Restrictions, and, upon such vesting, all
      Forfeiture Restrictions applicable to such Restricted Stock Awards or
      Restricted Stock Unit Awards shall terminate as of such date. Any action
      by the Committee pursuant to this subparagraph may vary among individual
      Participants and may vary among the Restricted Stock Awards or
      Restricted Stock Unit Awards held by any individual Participant.
    

    
      (f) Restricted Stock Award Agreements and Restricted Stock Unit
      Award Agreements. At the time any Award is made under this
      Paragraph VIII, the Company and the Participant shall enter into a
      Restricted Stock Award Agreement or Restricted Stock Unit Award
      Agreement, as applicable; setting forth each of the matters contemplated
      hereby and such other matters as the Committee may determine to be
      appropriate. The terms and provisions of Restricted Stock Award
      Agreements or Restricted Stock Unit Award Agreements, as applicable,
      need not be identical. Subject to the consent of the Participant and the
      restriction set forth in the last sentence of subparagraph (e) above,
      the Committee may, in its sole discretion, amend an outstanding
      Restricted Stock Award Agreement or Restricted Stock Unit Award
      Agreement from time to time in any manner that is not inconsistent with
      the provisions of the Plan.
    

    
      IX. PERFORMANCE AWARDS 
    

    
      (a) Performance Period. The Committee shall establish,
      with respect to and at the time of each Performance Award, whether the
      Award is to be an Award of shares of Common Stock or a cash Award, or
      both, the number of shares of Common Stock subject to or the maximum
      cash value of the Performance Award, as applicable, and the performance
      period over which the performance applicable to the Performance Award
      shall be measured.
    

    
      (b) Performance Measures. The Committee, in its sole
      discretion, may provide for an adjustable Performance Award value based
      upon the level of achievement of Performance Measures and/or which
      provides for a reduction in the value of a Performance Award during the
      performance period. In no event shall a Performance Award which is an
      Award of shares of Common Stock vest in full prior to the expiration of
      a one-year period following the grant of the Award.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (c) Awards Criteria. In determining the value of
      Performance Awards, the Committee shall take into account a
      Participant’s responsibility level, performance, potential, other
      Awards, and such other considerations as it deems appropriate.
    

    
      (d) Payment. Following the end of the performance period
      for a Performance Award and in no event later than ten (10) years after
      the date of grant of such Performance Award, the holder of the
      Performance Award shall be entitled to receive payment of an amount not
      exceeding the number of shares of Common Stock subject to or the maximum
      cash value of the Performance Award, as applicable, based on the
      achievement of the Performance Measures for such performance period, as
      determined and certified in writing by the Committee. Payment of a
      Performance Award for a performance period shall be in full immediately
      following the end of such performance period but in no event later than
      the fifteenth day of the third calendar month after the later of the
      calendar year immediately following the calendar year within which the
      performance period ends or the taxable year of the Company immediately
      following the taxable year of the Company within which the performance
      period ends and may be made in cash, Common Stock, or a combination
      thereof, as determined by the Committee. If a Performance Award covering
      shares of Common Stock is to be paid in cash, such payment shall be
      based on the Fair Market Value of the Common Stock on the payment date
      or such other date as may be specified by the Committee in the
      Performance Award Agreement. If a Performance Award is to be paid in
      shares of Common Stock, the number of shares of such payment shall be
      determined based upon the Fair Market Value of the Common Stock on the
      date of payment or such other date as may be specified by the Committee
      in the Performance Award Agreement.
    

    
      (e) Termination of Award. A Performance Award shall
      terminate if the Participant does not remain continuously in the employ
      of the Company and its Affiliates or does not continue to serve as a
      Director for the Company at all times during the applicable performance
      period, except as may be otherwise determined by the Committee.
    

    
      (f) Performance Award Agreements. At the time any Award is
      made under this Paragraph IX, the Company and the Participant shall
      enter into a Performance Award Agreement setting forth each of the
      matters contemplated hereby, and such additional matters as the
      Committee may determine to be appropriate. The terms and provisions of
      the respective Performance Award Agreements need not be identical.
    

    
      (g) No Dividend Equivalents. No grant of Performance Award
      may provide for dividends, dividend equivalents or other similar
      distributions to be paid on such unvested Performance Award.
    

    
      X. PHANTOM STOCK AWARDS 
    

    
      (a) Phantom Stock Awards. Phantom Stock Awards are rights
      to receive shares of Common Stock (or the Fair Market Value thereof, in
      cash), or rights to receive an amount equal to any appreciation or
      increase in the Fair Market Value of Common Stock over a specified
      period of time, which vest over a period of time as established by the
      Committee, without satisfaction of any performance criteria or
      objectives. The Committee may, in its discretion, require payment or
      other conditions of the Participant respecting any Phantom Stock Award.
      A Phantom Stock Award may include, without limitation, a Stock
      Appreciation Right that is granted independently of an Option or a Stock
      Appreciation Right that is granted in tandem with an Option. Any Phantom
      Stock Award which is a Stock Appreciation Right shall have a maximum
      term of ten years and shall represent an Award that measures
      appreciation or increase in the Fair Market Value of Common Stock only
      with reference to appreciation over the Fair Market Value of the Common
      Stock which is the subject of the Award as of the date of grant thereof.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (b) Award Period. The Committee shall establish, with
      respect to and at the time of each Phantom Stock Award, a period over
      which the Award shall vest with respect to the Participant; provided,
      however, no Phantom Stock Award will vest in full prior to the
      expiration of a one year period from the date of its grant.
    

    
      (c) Awards Criteria. In determining the value of Phantom
      Stock Awards, the Committee shall take into account a Participant’s
      responsibility level, performance, potential, other Awards, and such
      other considerations as it deems appropriate.
    

    
      (d) Payment. Following the end of the vesting period for a
      Phantom Stock Award (or at such other time as the applicable Phantom
      Stock Award Agreement may provide) or upon an exercise by a Participant
      of a payment right and in no event later than ten (10) years after the
      date of grant of such Phantom Stock Award, the holder of the Phantom
      Stock Award shall be entitled to receive payment of an amount, not
      exceeding the maximum value of the Phantom Stock Award, based on the
      then vested or exercised value of the Award. Payment of a Phantom Stock
      Award may be made in cash, Common Stock, or a combination thereof as
      determined by the Committee. Payment shall be made in full as soon as
      practicable following vesting or exercise of the Award, but in no event
      later than the fifteenth day of the third calendar month after the later
      of the calendar year immediately following the calendar year in which
      such vesting occurred or the taxable year of the Company immediately
      following the taxable year of the Company or within which such vesting
      occurred. Any payment to be made in cash shall be based on the Fair
      Market Value of the Common Stock on the payment date or such other date
      as may be specified by the Committee in the Phantom Stock Award
      Agreement.
    

    
      (e) Termination of Award. A Phantom Stock Award shall
      terminate if the Participant does not remain continuously in the employ
      of the Company and its Affiliates or does not continue to serve as a
      Director of the Company at all times during the applicable vesting
      period, except as may be otherwise determined by the Committee.
    

    
      (f) Phantom Stock Award Agreements. At the time any Award
      is made under this Paragraph X, the Company and the Participant shall
      enter into a Phantom Stock Award Agreement setting forth each of the
      matters contemplated hereby, and such additional matters as the
      Committee may determine to be appropriate. The terms and provisions of
      Phantom Stock Award Agreements need not be identical.
    

    
      XI. DIRECTOR DEFERRED STOCK UNIT AWARDS 
    

    
      (a) Director Deferred Stock. A Director Deferred Stock
      Unit Award provides deferral of part or all of a Director’s Director
      Compensation Payment into deferred stock units. Director Deferred Stock
      Unit Awards shall only be available to Directors who are not employees.
      A Director Deferred Stock Unit Award is a right to receive shares of
      Common Stock based upon a bookkeeping entry referencing a value
      expressed by reference to shares of Common Stock. Each Director who is
      not an employee may elect, in lieu of being paid any portion of a
      Director Compensation Payment in cash, to be awarded deferred stock
      units in an amount equal to the dollar amount of such Director
      Compensation Payment divided by the Fair Market Value of a share of
      Common Stock determined as of the date that such deferred Director
      Compensation Payment amount would otherwise have been paid to the
      Director in cash. Any such election shall be made in whole percentages,
      on a form prescribed by the Company, at the same percentage for all
      components of the Director Compensation Payment (i.e., such percentage
      would apply equally to the Director Annual Retainer Payment and any
      other fees included in the Director Compensation Payment). Any such
      election must be made on or before the December 31 of the calendar year
      prior to the calendar year or fiscal year in which the services for the
      Director Compensation Payment which such Director is deferring into
      deferred stock units will be rendered, and any such election shall be
      irrevocable as of such December 31. Notwithstanding the foregoing, the
      election described in the preceding sentence by an individual who has
      first become elected as a Director may be made before or within the
      30-day period immediately following his or her election as a Director
      provided that the deferral effected by such election will only apply
      with respect to compensation earned for services rendered as a Director
      after the date such election was made. Any deferral portion of such
      Director Compensation Payment credited to such Director in the form of
      deferred stock units, in lieu of being paid to such Director in cash,
      shall be awarded additional deferred stock units in an amount equal to
      .25 times the dollar amount of the deferred portion of the Director
      Annual Retainer Payment divided by the Fair Market Value of a share of
      Common Stock determined as of the date that such deferred Director
      Compensation Payment amount would otherwise have been paid to the
      Director in cash.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (b) Dividends. Each time that a dividend is paid on Common
      Stock (other than a dividend of capital stock of the Company), a
      Director who is then credited with deferred stock units shall be
      credited with additional deferred stock units equal to the product of
      the dividend payment amount (or, if other than in cash, the Fair Market
      Value thereof) per share multiplied by the number of deferred stock
      units credited to such Director as of the record date for the dividend,
      divided by the Fair Market Value of the Common Stock on the dividend
      payment date.
    

    
      (c) Director Deferred Stock Unit Award Payouts. At the
      time that a Director ceases to be a Director of the Company, the
      deferred stock units then credited to such Director (as adjusted [both
      as to deferred stock units and cash fees] for the period of service as a
      Director) shall be exchanged for shares of Common Stock which will be
      distributed to such Director. The transfer of shares of Common Stock to
      a Director in exchange for such Director’s deferred stock units shall be
      effected within five (5) business days after the date such Director
      ceases to be a Director of the Company. Deferred stock units shall be
      paid in cash within such five (5) business day period to the extent
      applicable Plan limitations at such time preclude Plan distributions of
      Common Stock.
    

    
      XII. RECAPITALIZATION OR REORGANIZATION 
    

    
      (a) No Effect on Right or Power. The existence of the Plan
      and the Awards granted hereunder shall not affect in any way the right
      or power of the Board or the stockholders of the Company to make or
      authorize any adjustment, recapitalization, reorganization or other
      change in the Company’s or any Affiliate’s capital structure or its
      business, any merger or consolidation of the Company or any Affiliate,
      any issue of debt or equity securities ahead of or affecting Common
      Stock or the rights thereof, the dissolution or liquidation of the
      Company or any Affiliate or any sale, lease, exchange or other
      disposition of all or any part of its assets or business or any other
      corporate act or proceeding.
    

    
      (b) Subdivision or Consolidation of Shares; Stock Dividends; and
      Recapitalizations. The shares with respect to which Awards may
      be granted are shares of Common Stock as presently constituted, but if,
      and whenever, prior to the expiration of an Award theretofore granted,
      the Company shall effect a subdivision or consolidation of shares of
      Common Stock or the payment of a stock dividend on Common Stock without
      receipt of consideration by the Company, the number of shares of Common
      Stock covered by an Award (i) in the event of an increase in the number
      of outstanding shares shall be proportionately increased, and the
      purchase price per share shall be proportionately reduced, and (ii) in
      the event of a reduction in the number of outstanding shares shall be
      proportionately reduced, and the purchase price per share shall be
      proportionately increased. Any fractional share resulting from such
      adjustment shall be rounded up to the next whole share. If the Company
      recapitalizes, reclassifies its capital stock, or otherwise changes its
      capital structure (a “recapitalization”), the number and class of shares
      of Common Stock covered by an Award theretofore granted shall be
      adjusted so that such Award shall thereafter cover the number and class
      of shares of stock and securities to which the Participant would have
      been entitled pursuant to the terms of the recapitalization if,
      immediately prior to the recapitalization, the Participant had been the
      holder of record of the number of shares of Common Stock then covered by
      such Award.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (c) Corporate Changes. Before or no later than thirty
      (30) days after a Corporate Change, the Committee, acting in its sole
      discretion without the consent or approval of any Participant, shall
      effect one or more of the following alternatives, which alternatives may
      vary among individual Participants and which may vary among Options held
      by any individual Participant: (1) accelerate the time at which Options
      then outstanding may be exercised so that such Options may be exercised
      in full for a limited period of time on or before a specified date
      (before or after such Corporate Change) fixed by the Committee, after
      which specified date all unexercised Options and all rights of
      Participants thereunder shall terminate, (2) cancel and terminate some
      or all of the outstanding Options and any rights thereunder held by all
      or selected Participants (irrespective of whether such Options are then
      exercisable under the provisions of the Plan) as of a date, before or
      after such Corporate Change, specified by the Committee, in which event
      the Company shall pay (or cause to be paid) to each Participant an
      amount of cash per share equal to the excess, if any, of the amount
      calculated in Subparagraph (d) below (the “Change of Control Value”) of
      the shares subject to such Option over the exercise price(s) under such
      Options for such shares, or (3) make such adjustments to Options then
      outstanding as the Committee deems appropriate to reflect such Corporate
      Change (provided, however, that the Committee may determine in its sole
      discretion that no adjustment is necessary to Options then outstanding),
      including, without limitation, adjusting an Option to provide that the
      number and class of shares of Common Stock covered by such Option shall
      be adjusted so that such Option shall thereafter cover securities of the
      surviving or acquiring corporation or other property (including, without
      limitation, cash) as determined by the Committee in its sole discretion.
      In exercising its powers to adjust Options as a result of a result of a
      Corporate Change pursuant to this subparagraph (c), the Committee shall
      exercise its best efforts to effect adjustments in a way that does not
      cause Options to become deferred compensation for purposes of the
      requirements imposed under section 409A of the Code.
    

    
      In the event of a Corporate Change, the Committee, acting at its sole
      discretion without the consent or approval of any Participant, may cause
      the Forfeiture Restrictions then remaining applicable with respect to
      all or selected Restricted Stock Awards or Restricted Stock Unit Awards
      to lapse in whole or in part as of a date before or after such Corporate
      Change as specified by the Committee.
    

    
      In the event of a Corporate Change, the Committee, acting in its sole
      discretion without the consent or approval of any Participant, may
      cancel and terminate, as of a date before or after such Corporate Change
      specified by the Committee, Performance Awards and Phantom Stock Awards
      and any rights thereunder and the Company shall pay (or cause to be
      paid) to each Participant an amount of cash equal to the maximum value
      (which maximum value may be determined, if applicable and in the
      discretion of the Committee, based on the then Fair Market Value of the
      Common Stock) of such Performance Award or Phantom Stock Award which, in
      the event the applicable performance or vesting period set forth in such
      Performance Award or Phantom Stock Award has not been completed, shall
      be multiplied by a fraction, the numerator of which is the number of
      days during the period beginning on the first day of the applicable
      performance or vesting period and ending on the date of the cancellation
      and termination, and the denominator of which is the aggregate number of
      days in the applicable performance or vesting period.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      Provisions of this Subparagraph (c) notwithstanding, the Committee may
      not and cannot take action pursuant to this Subparagraph (c) with
      respect to Awards which constitute deferred compensation that is subject
      to section 409A of the Code unless (i) the Corporate Change in issue is
      a “change in control event” as such term is described in Treasury
      Regulations promulgated pursuant to section 409A of the Code and
      (ii) the action taken by the Committee constitutes an acceleration which
      is a permissible acceleration under such Treasury Regulations. Further,
      nothing in this Subparagraph (c) shall be interpreted to invalidate or
      otherwise adversely affect any provision in an individual Award
      agreement regarding the effect of a Corporate Change upon the Award
      evidenced by such agreement and the Committee can exercise powers
      conferred upon the Committee pursuant to this Subparagraph (c) with
      respect to such Award only in a way which is consistent with and
      complementary to any specific Corporate Change provisions of such Award
      Agreement.
    

    
      (d) Change of Control Value. For the purposes of clause
      (2) in Subparagraph (c) above, the “Change of Control Value” shall equal
      the amount determined in clause (i), (ii) or (iii) below, whichever is
      applicable, as follows: (i) the per share price offered to stockholders
      of the Company in any such merger, consolidation, sale of assets or
      dissolution transaction, (ii) the price per share offered to
      stockholders of the Company in any tender offer or exchange offer
      whereby a Corporate Change takes place, or (iii) if such Corporate
      Change occurs other than pursuant to clause (i) or (ii) above, the Fair
      Market Value per share of the shares into which such Options being
      surrendered are exercisable, as determined by the Committee as of the
      date determined by the Committee to be the date of cancellation and
      termination of such Options. In the event that the consideration offered
      to stockholders of the Company in any transaction described in this
      Subparagraph (d) or Subparagraph (c) above consists of anything other
      than cash, the Committee shall determine the fair cash equivalent of the
      portion of the consideration offered which is other than cash.
    

    
      (e) Other Changes in the Common Stock. In the event of
      changes in the outstanding Common Stock by reason of recapitalizations,
      reorganizations, mergers, consolidations, combinations, split-ups,
      split-offs, spin-offs, exchanges or other relevant changes in
      capitalization or distributions to the holders of Common Stock occurring
      by reason of the above events and after the date of the grant of any
      Award and not otherwise provided for by this Paragraph XII, such Award
      and any agreement evidencing such Award shall be subject to adjustment
      by the Committee at its sole discretion as to the number and price of
      shares of Common Stock or other consideration subject to such Award. In
      the event of any such change in the outstanding Common Stock or
      distribution to the holders of Common Stock by reason of the above
      events, or upon the occurrence of any other event described in this
      Paragraph XII, the aggregate number of shares available under the Plan,
      the aggregate number of shares that may be issued under the Plan through
      Incentive Stock Options, and the maximum number of shares that may be
      subject to Awards granted to any one individual may be appropriately
      adjusted to the extent, if any, determined by the Committee, whose
      determination shall be conclusive.
    

    
      (f) Stockholder Action. Any adjustment provided for in the
      above Subparagraphs shall be subject to any required stockholder action.
    

    
      (g) No Adjustments Unless Otherwise Provided. Except as
      hereinbefore expressly provided, the issuance by the Company of shares
      of stock of any class or securities convertible into shares of stock of
      any class, for cash, property, labor or services, upon direct sale, upon
      the exercise of rights or warrants to subscribe therefor, or upon
      conversion of shares or obligations of the Company convertible into such
      shares or other securities, and in any case whether or not for fair
      value, shall not affect, and no adjustment by reason thereof shall be
      made with respect to, the number of shares of Common Stock subject to
      Awards theretofore granted or the purchase price per share, if
      applicable.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      XIII. AMENDMENT AND TERMINATION OF THE PLAN 
    

    
      The Board in its discretion may terminate the Plan at any time with
      respect to any shares of Common Stock for which Awards have not
      theretofore been granted. The Board shall have the right to alter or
      amend the Plan or any part thereof from time to time; provided that no
      change in the Plan may be made that would impair the rights of a
      Participant with respect to an Award theretofore granted without the
      consent of the Participant, and provided, further, that the Board may
      not, without approval of the stockholders of the Company, (a) amend the
      Plan to increase the maximum aggregate number of shares that may be
      issued under the Plan, increase the maximum number of shares that may be
      issued under the Plan through Incentive Stock Options or change the
      class of individuals eligible to receive Awards under the Plan, or
      (b) amend or delete Paragraph VII(f).
    

    
      XIV. CODE COMPLIANCE 
    

    
      (a) Code Section 162(m). For each Award that is
      granted to a “covered employee” (within the meaning of Treasury
      Regulation section 1.162-27(c)(2) and is intended, as determined by the
      Committee in its sole discretion, to satisfy the exception for
      performance-based compensation under section 162(m) of the Code), the
      Committee shall establish the Performance Measures applicable to such
      Award either (i) prior to the beginning of the Award’s performance
      period or (ii) within ninety (90) days after the beginning of an Award’s
      performance period if the outcome of the performance targets is
      substantially uncertain at the time such targets are established, but
      not later than the date that twenty-five percent (25%) of an Award’s
      performance period has elapsed.
    

    
      (b) Code Section 409A. The Company intends that any
      Awards which may be subject to section 409A of the Code comply with or
      are exempt from section 409A of the Code, and, accordingly, to the
      maximum extent permitted, this Plan and any Awards granted thereunder
      shall be interpreted and administered to be in compliance with section
      409A of the Code or exempt therefrom. If for any reason, such as
      imprecision in drafting, any provision of this Plan or any Award
      agreement does not accurately reflect its intended establishment of an
      exemption from (or compliance with) section 409A of the Code, as
      demonstrated by consistent interpretations or other evidence of intent,
      such provision shall be considered ambiguous as to its exemption from
      (or compliance with) section 409A of the Code and shall be interpreted
      by the Committee in a manner consistent with such intent, as determined
      in the discretion of the Committee. While the Awards provided hereunder
      are intended to be structured in a manner to avoid the implication of
      any penalty taxes under section 409A of the Code, in no event whatsoever
      will the Company or any of its respective Affiliates be liable for any
      additional tax, interest, or penalties that may be imposed on a
      Participant as a result of section 409A of the Code or any damages for
      failing to comply with section 409A of the Code. Notwithstanding
      anything herein to the contrary, to the extent an Award set forth in
      this Plan constitutes “non-qualified deferred compensation” subject to
      section 409A of the Code, then the following conditions apply to the
      payment of such benefits:
    

    
      (i) Any termination of a Participant’s employment triggering payment of
      benefits under an Award must constitute a “separation from service”
      under section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h)
      before distribution of such benefits can commence. To the extent that
      the termination of a Participant’s employment does not constitute a
      separation of service under section 409A(a)(2)(A)(i) of the Code and
      Treas. Reg. §1.409A-1(h) (as the result of further services that are
      reasonably anticipated to be provided by a Participant to the Company or
      its Affiliate at the time a Participant’s employment terminates), any
      benefits payable under the Plan or an Award agreement that constitute
      non-qualified deferred compensation under section 409A of the Code shall
      be delayed until the date of a subsequent event constituting a
      separation of service under section 409A(a)(2)(A)(i) of the Code and
      Treas. Reg. §1.409A-1(h). For purposes of clarification, this
      subparagraph shall not cause any forfeiture of benefits on a
      Participant’s part, but shall only act as a delay until such time as a
      “separation from service” occurs.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (ii) If a Participant is a “specified employee” (as that term is used in
      section 409A of the Code and regulations and other guidance issued
      thereunder) on the date his or her separation from service becomes
      effective, any benefits payable under an Award that constitute
      non-qualified deferred compensation subject to section 409A of the Code
      shall be delayed until the earlier of (A) the business day following the
      six-month anniversary of the date his separation from service becomes
      effective, (B) the date of a Participant’s death, but only to the extent
      necessary to avoid the adverse tax consequences and penalties under
      section 409A of the Code or (C) such earlier date as is permitted under
      section 409A of the Code (the “Delayed Payment Date”). On the Delayed
      Payment Date, the Company shall pay the Participant (or, if applicable,
      his estate) in a lump sum the aggregate value of the non-qualified
      deferred compensation that the Company otherwise would have paid the
      Participant prior to that date under the Award agreement.
    

    
      (iii) It is intended that each installment of the payments and benefits
      provided under this Plan shall be treated as a separate “payment” for
      purposes of section 409A of the Code.
    

    
      (iv) Neither the Company nor any Participant shall have the right to
      accelerate or defer the delivery of any such payments or benefits except
      to the extent specifically permitted or required by section 409A of the
      Code.
    

    
      (v) If any other payments or other benefits due to a Participant
      hereunder could cause the application of an accelerated or additional
      tax under section 409A of the Code, such payments or other benefits
      shall be deferred if deferral will make such payment or other benefits
      compliant under section 409A of the Code, or otherwise such payment or
      other benefits shall be restructured, to the extent possible, in a
      manner, determined by the Committee that does not cause such an
      accelerated or additional tax. A Participant shall not have any right to
      determine a date of payment of any amount under this Plan.
    

    
      XV. MISCELLANEOUS 
    

    
      (a) No Right to an Award. Neither the adoption of the Plan
      nor any action of the Board or of the Committee shall be deemed to give
      any individual any right to be granted an Option, a right to a
      Restricted Stock Award, a right to a Restricted Stock Unit, a right to a
      Performance Award, a right to a Phantom Stock Award, or any other rights
      hereunder except as may be evidenced by an Award agreement duly executed
      on behalf of the Company, and then only to the extent and on the terms
      and conditions expressly set forth therein. The Plan shall be unfunded.
      The Company shall not be required to establish any special or separate
      fund or to make any other segregation of funds or assets to assure the
      performance of its obligations under any Award.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      (b) No Employment/Membership Rights Conferred. Nothing
      contained in the Plan shall (i) confer upon any employee any right with
      respect to continuation of employment or of a consulting or advisory
      relationship with the Company or any Affiliate or (ii) interfere in any
      way with the right of the Company or any Affiliate to terminate his or
      her employment or consulting or advisory relationship at any time.
      Nothing contained in the Plan shall confer upon any Director any right
      with respect to continuation of membership on the Board.
    

    
      (c) Other Laws; Withholding. The Company shall not be
      obligated to issue any Common Stock pursuant to any Award granted under
      the Plan at any time when the shares covered by such Award have not been
      registered under the Securities Act of 1933, as amended, and such other
      state and federal laws, rules and regulations as the Company or the
      Committee deems applicable and, in the opinion of legal counsel for the
      Company, there is no exemption from the registration requirements of
      such laws, rules and regulations available for the issuance and sale of
      such shares. The Company may at its option deliver fractional shares of
      Common Stock and/or pay cash in lieu of fractional shares. The Company
      shall have the right to deduct in connection with all Awards any taxes
      required by law to be withheld and to require any payments required to
      enable it to satisfy its withholding obligations.
    

    
      (d) No Restriction on Corporate Action. Nothing contained
      in the Plan shall be construed to prevent the Company or any Affiliate
      from taking any action which is deemed by the Company or such Affiliate
      to be appropriate or in its best interest, whether or not such action
      would have an adverse effect on the Plan or any Award made under the
      Plan. No Participant, beneficiary or other person shall have any claim
      against the Company or any Affiliate as a result of any such action.
    

    
      (e) Restrictions on Transfer. An Award (other than an
      Incentive Stock Option, which shall be subject to the transfer
      restrictions set forth in Paragraph VII(c)) shall not be transferable
      otherwise than (i) by will or the laws of descent and distribution,
      (ii) pursuant to a domestic relations order as defined by the Code or
      Title I of the Employee Retirement Income Security Act of 1974, as
      amended, or the rules thereunder, or (iii) with the consent of the
      Committee, but in no event can any Award granted hereunder be
      transferred for value.
    

    
      (f) Governing Law. The Plan shall be governed by, and
      construed in accordance with, the laws of the State of Delaware, without
      regard to conflicts of laws principles thereof.
    

    
      (g) Claw-Back Policy. All Awards (including any
      proceeds, gains or other economic benefit actually or constructively
      received by the Participant upon any receipt or exercise of any Award)
      shall be subject to the provisions of the Company’s claw-back policy as
      set forth in Section 10 of the Company’s Code of Business Conduct and
      Ethics (as amended from time to time) including any amendments of such
      claw-back policy adopted to comply with the requirements of the
      Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules
      or regulations promulgated thereunder.
    

    

    

    	
           
        	
          PIER 1 IMPORTS, INC.
        
	

        	
           
        
	

        	
          By:
        	
          /s/ Gregory S. Humenesky
        
	

        	
          Date: June 25, 2015EX-10.1

 Exhibit 10.1 

CHANGE IN CONTROL SEVERANCE AGREEMENT 

THIS AGREEMENT, dated as of                 , 2015, is made by
and between ZIMMER BIOMET HOLDINGS, INC., a Delaware corporation (the “Company”), and                      (the “Executive”). The
capitalized words and terms used throughout this Agreement are defined in Article XIII. 
 Recitals 

A. The Company considers it essential to the best interests of its stockholders to foster the continuous employment of key management
personnel. 
 B. The Board recognizes that, as is the case with many publicly held corporations, the possibility of a Change in Control
exists and that such a possibility, and the uncertainty and questions that it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders. 

C. The Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of
members of the Company’s management, including the Executive, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control. 

D. The parties intend that no amount or benefit will be payable under this Agreement unless a termination of the Executive’s employment
with the Company occurs following a Change in Control, or is deemed to have occurred following a Change in Control, as provided in this Agreement. 

 Agreement 

In consideration of the premises and the mutual covenants and agreements set forth below, the Company and the Executive agree as follows: 

ARTICLE I 

Term of Agreement 

This Agreement will commence on the date stated above and will continue in effect through December 31, 2015. Beginning on January 1,
2016, and each subsequent January 1, the term of this Agreement will automatically be extended for one additional year, unless either party gives the other party written notice not to extend this Agreement at least 30 days before the extension
would otherwise become effective or unless a Change in Control occurs. If a Change in Control occurs during the term of this Agreement, this Agreement will continue in effect for a period of 24 months from the end of the month in which the
Change in Control occurs. Notwithstanding the foregoing provisions of this Article, this Agreement will terminate on the Executive’s Retirement Date. 

ARTICLE II 

Compensation other than Severance Payments 

SECTION 2.01. Disability Benefits. Following a Change in Control and during the term of this Agreement, during any period that the
Executive fails to perform the Executive’s full-time duties with the Company as a result of Disability, the Executive will receive short-term and long-term disability benefits as provided under short-term and long-term disability plans having
terms no less favorable than the terms of the Company’s short-term and long-term disability plans as in effect immediately prior to the Change in Control, together with all other compensation and benefits payable to the Executive pursuant to
the terms of any compensation or benefit plan, program, or arrangement maintained by the Company during the period of Disability. 

  
 2 

 SECTION 2.02. Compensation Previously Earned. If the Executive’s employment is
terminated for any reason following a Change in Control and during the term of this Agreement, the Company will pay the Executive’s salary accrued through the Date of Termination, at the rate in effect at the time the Notice of Termination is
given, together with all other compensation and benefits payable to the Executive through the Date of Termination under the terms of any compensation or benefit plan, program, or arrangement maintained by the Company during that period. 

SECTION 2.03. Normal Post-Termination Compensation and Benefits. Except as provided in Section 3.01, if the Executive’s
employment is terminated for any reason following a Change in Control and during the term of this Agreement, the Company will pay the Executive the normal post-termination compensation and benefits payable to the Executive under the terms of the
Company’s retirement, insurance, and other compensation or benefit plans, programs, and arrangements, as in effect immediately prior to the Change in Control. This provision does not restrict the Company’s right to amend, modify, or
terminate any plan, program, or arrangement prior to a Change in Control. 
 SECTION 2.04. No Duplication. Notwithstanding any other
provision of this Agreement to the contrary, the Executive will not be entitled to duplicate benefits or compensation under this Agreement and the terms of any other plan, program, or arrangement maintained by the Company or any affiliate. 

  
 3 

 ARTICLE III 

Severance Payments 

SECTION 3.01. Payment Triggers. 

(a) In lieu of any other severance compensation or benefits to which the Executive may otherwise be entitled under any plan, program, policy,
or arrangement of the Company (and which the Executive hereby expressly waives), the Company will pay the Executive the Severance Payments described in Section 3.02 upon termination of the Executive’s employment following a Change in
Control and during the term of this Agreement, in addition to the payments and benefits described in Article II, unless the termination is (1) by the Company for Cause, (2) by reason of the Executive’s death, or (3) by the
Executive without Good Reason. 
 (b) For purposes of this Section 3.01, the Executive’s employment will be deemed to have been
terminated following a Change in Control by the Company without Cause or by the Executive with Good Reason if (1) the Executive’s employment is terminated without Cause prior to a Change in Control at the direction of a Person who has
entered into an agreement with the Company, the consummation of which will constitute a Change in Control; or (2) the Executive terminates his employment with Good Reason prior to a Change in Control (determined by treating a Potential Change
in Control as a Change in Control in applying the definition of Good Reason), if the circumstance or event that constitutes Good Reason occurs at the direction of such a Person. 

(c) The Severance Payments described in this Article III are subject to the conditions stated in Article VI. 

  
 4 

 SECTION 3.02. Severance Payments. The following are the Severance Payments referenced
in Section 3.01: 
 (a) Lump Sum Severance Payment. In lieu of any further salary payments to the Executive for periods after
the Date of Termination, and in lieu of any severance benefits otherwise payable to the Executive, the Company will pay to the Executive, in accordance with Section 3.04, a lump sum severance payment, in cash, equal to two (or, if less, the
number of years, including fractions, from the Date of Termination until the Executive reaches his Retirement Date), times the sum of (1) the higher of the Executive’s annual base salary in effect immediately prior to the event or
circumstance upon which the Notice of Termination is based or in effect immediately prior to the Change in Control, and (2) if Severance Payments are triggered under Section 3.01(a), the amount of the Executive’s target annual bonus
entitlement under the Incentive Plan (or any other bonus plan of the Company then in effect) as in effect immediately prior to the event or circumstance giving rise to the Notice of Termination, or, if Severance Payments are triggered under
Section 3.01(b), the amount of the largest aggregate annual bonus paid to the Executive with respect to the three years immediately prior to the year in which the Notice of Termination was given. If the Board determines that it is not workable
to determine the amount that the Executive’s target bonus would have been for the year in which the Notice of Termination was given, then, for purposes of this paragraph (a), the Executive’s target annual bonus entitlement will be the
amount of the largest aggregate annual bonus paid to the Executive with respect to the three years immediately prior to the year in which the Notice of Termination was given. 

(b) Incentive Compensation. Notwithstanding any provision of the Incentive Plan or any other compensation or incentive plans of the
Company, the Company will pay to the Executive, in accordance with Section 3.04, a lump sum amount, in cash, equal to the sum of (1) any incentive compensation that has been allocated or awarded to the Executive for a

  
 5 

 
completed calendar year or other measuring period preceding the Date of Termination (to the extent not payable pursuant to Section 2.02) provided that, if Severance Payments are triggered
under Section 3.01(b), the performance conditions applicable to such incentive compensation are met, and (2) if Severance Payments are triggered under Section 3.01(a), a pro rata portion (based on elapsed time) to the Date of
Termination of the aggregate value of all contingent incentive compensation awards to the Executive for the current calendar year or other measuring period under the Incentive Plan, the Award Plan, or any other compensation or incentive plans of the
Company, calculated as to each such plan using the Executive’s annual target percentage under that plan for that year or other measuring period and as if all conditions for receiving that target award had been met, or, if Severance Payments are
triggered under Section 3.01(b), then with respect to each such plan, an amount equal to the average annual award paid to the Executive under such plan during the three years immediately prior to the year in which the Notice of Termination was
given multiplied by a fraction, the numerator of which is the number of whole months elapsed since the beginning of the calendar year or other measuring period to the Date of Termination and the denominator of which is 12 (or the number of whole
months in the measuring period). 
 (c) Options and Restricted Shares. All outstanding Options will become immediately vested and
exercisable (to the extent not yet vested and exercisable as of the Date of Termination). To the extent not otherwise provided under the written agreement evidencing the grant of any restricted Shares to the Executive, all outstanding Shares that
have been granted to the Executive subject to restrictions that, as of the Date of Termination, have not yet lapsed will lapse automatically upon the Date of Termination, and the Executive will own those Shares free and clear of all such
restrictions. Notwithstanding the foregoing, options and restricted Shares remain subject to any forfeiture or clawback claims under the applicable option plan or award agreement. 

  
 6 

 (d) Welfare Benefits. Except as otherwise provided in this Section 3.02(d), for a
24-month period after the Date of Termination, the Company will arrange to provide the Executive with life insurance coverage substantially similar to that which the Executive is receiving from the Company immediately prior to the Notice of
Termination (without giving effect to any reduction in that coverage subsequent to a Change in Control). Life insurance coverage otherwise receivable by the Executive pursuant to this Section 3.02(d) will be reduced to the extent comparable
coverage is actually received by or made available to the Executive without greater cost to him than as provided by the Company during the 24-month period following the Executive’s termination of
employment (and the Executive will report to the Company any such coverage actually received by or made available to the Executive). 
 If,
as of the Date of Termination, the Company reasonably determines that the continued life insurance coverage required by this Section 3.02(d) is not available from the Company’s group insurance carrier, cannot be procured from another
carrier, and cannot be provided on a self-insured basis without adverse tax consequences to the Executive or his death beneficiary, then, in lieu of continued life insurance coverage, the Company will pay the Executive, in accordance with
Section 3.04, a lump sum payment, in cash, equal to 24 times the full monthly premium payable to the Company’s group insurance carrier for comparable coverage for an executive employee under the Company’s group life insurance plan
then in effect. 
 The Company will offer the Executive and any eligible family members the opportunity to elect to continue medical and
dental coverage pursuant to COBRA. The Executive will be responsible for paying the required monthly premium for that coverage, but the 

  
 7 

 
Company will pay the Executive, in accordance with Section 3.04, a lump sum cash stipend equal to 24 times the monthly COBRA premium then charged to qualified beneficiaries for the same
level of health and dental coverage the Executive had in effect immediately prior to his termination, and the Executive may, but is not required to, choose to use the stipend for the payment of COBRA premiums for any COBRA coverage that the
Executive or eligible family members may elect. The Company will pay the stipend to the Executive whether or not the Executive or any eligible family member elects COBRA coverage, whether or not the Executive continues COBRA coverage for the maximum
period permitted by law, and whether or not the Executive receives medical or dental coverage from another employer while the Executive is receiving COBRA continuation coverage. Payment of the stipend will not in any way extend or modify the
Executive’s continuation coverage rights under COBRA or any similar continuation coverage law. 
 (e) Matching and Fixed
Contributions. In addition to the vested amounts, if any, to which the Executive is entitled under the Savings Plan as of the Date of Termination, the Company will pay the Executive, in accordance with Section 3.04, a lump sum amount equal
to the value of the unvested portion, if any, of the employer matching and fixed contributions (and attributable earnings) credited to the Executive under the Savings Plan. 

(f) Outplacement Services. For a period not to exceed six (6) months following the Date of Termination, the Company will provide
the Executive with reasonable outplacement services consistent with past practices of the Company prior to the Change in Control or, if no past practice has been established prior to the Change in Control, consistent with the prevailing practice in
the medical device manufacturing industry. 

  
 8 

 SECTION 3.03. Limitation on Severance Payments. 

(a) Notwithstanding anything to the contrary contained in this Agreement, in the event that any Severance Payments paid or payable to the
Executive or for his benefit pursuant to the terms of this Agreement or otherwise in connection with a Change in Control (“Total Payments”) would be subject to any Excise Tax, then the value of the Total Payments will be reduced to the
extent necessary so that, within the meaning of Code Section 280G(b)(2)(A)(ii), the aggregate present value of the payments in the nature of compensation to (or for the benefit of) the Executive that are contingent on a Change in Control (with
a Change in Control for this purpose being defined in terms of a “change” described in Code Section 280G(b)(2)(A)(i) or (ii)), do not exceed 2.999 multiplied by the Base Amount. For this purpose, cash Severance Payments will be
reduced first (if necessary, to zero), and all other, non-cash Severance Payments will be reduced next (if necessary, to zero). For purposes of the limitation described in the preceding sentence, the following will not be taken into account:
(1) any portion of the Total Payments the receipt or enjoyment of which the Executive effectively waived in writing prior to the Date of Termination, and (2) any portion of the Total Payments that, in the opinion of the Accounting Firm,
does not constitute a “parachute payment” within the meaning of Code Section 280G(b)(2). 
 (b) For purposes of this
Section 3.03, the determination of whether any portion of the Total Payments would be subject to an Excise Tax will be made by an Accounting Firm selected by the Company and reasonably acceptable to the Executive. For purposes of that
determination, the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the Accounting Firm in accordance with the principles of Section 280G(d)(3) and (4). 

  
 9 

 SECTION 3.04. Time of Payment. Except as otherwise expressly provided in
Section 3.02, payments provided for in that Section will be made as follows: 
 (a) Subject to Section 3.04(d), no later than the
fifth business day following the Date of Termination, the Company will pay to the Executive an estimate, as determined by the Company in good faith, of 90% of the minimum amount of the payments under Section 3.02 to which the Executive is
clearly entitled. 
 (b) Subject to Section 3.04(d), the Company will pay to the Executive the remainder of the payments due him under
Section 3.02 (together with interest at the rate provided in Code Section 1274(b)(2)(B)) not later than the 30th business day after the Date of Termination. 

(c) At the time that payment is made under Section 3.04(b), the Company will provide the Executive with a written statement setting forth
the manner in which all of the payments to him under this Agreement were calculated and the basis for the calculations including, without limitation, any opinions or other advice the Company received from auditors or consultants (other than legal
counsel) with respect to the calculations (and any such opinions or advice that are in writing will be attached to the statement). 
 (d)
Notwithstanding any of the foregoing, if, as of the date of the Executive’s separation from service, the Executive is a “specified employee” under the Section 409A Standards, any and all payments under this Agreement that
constitute deferred compensation under the Section 409A Standards shall be suspended until, and will be payable on, the date that is six (6) months after the Executive’s separation from service (or, if earlier, the date the Executive
dies after separation from service). 

  
 10 

 SECTION 3.05. Attorneys’ Fees and Expenses. To the extent permissible under the
Section 409A Standards, if the Executive finally prevails with respect to any bona fide, good faith dispute between the Executive and the Company regarding the interpretation, terms, validity or enforcement of this Agreement (including any
dispute as to the amount of any payment due under this Agreement), the Company will pay or reimburse the Executive for all reasonable attorneys’ fees and expenses incurred by the Executive in connection with that dispute pursuant to the terms
of this paragraph. Payment or reimbursement of those fees and expenses will be made within fifteen (15) business days after delivery of the Executive’s written request for payment, accompanied by such evidence of fees and expenses incurred
as the Company reasonably may require, but the Executive may not submit such a request until the dispute has been finally resolved by a legally binding settlement or by an order or judgment that is not subject to appeal or with respect to which all
appeals have been exhausted. Any payment pursuant to this paragraph will be made no later than the end of the calendar year following the calendar year in which the dispute is finally resolved by a legally binding settlement or nonappealable
judgment or order. 
 In addition, the Company will pay the reasonable legal fees and expenses incurred by the Executive in connection with
any tax audit or proceeding to the extent attributable to the application of Code Section 4999 to any payment or benefit provided under this Agreement and including, but not limited to, auditors’ fees incurred in connection with the audit
or proceeding. Payment pursuant to the preceding sentence shall be made within fifteen (15) business days after the delivery of the Executive’s written request for payment, accompanied by such evidence of fees and expenses incurred as the
Company reasonably may require, but in no case later than the end of the calendar year following the calendar year in which the audit is completed or there is a final and nonappealable settlement or other resolution of the matter. 

  
 11 

 ARTICLE IV 

Termination of Employment 

SECTION 4.01. Notice of Termination. After a Change in Control and during the term of this Agreement, any purported termination of
the Executive’s employment (other than by reason of death) will be communicated by a written Notice of Termination from one party to the other party in accordance with Article VIII. The Notice of Termination will indicate the specific
termination provision in this Agreement relied upon and will set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the cited provision. 

SECTION 4.02. Date of Termination. Except as otherwise provided in Section 4.01, with respect to any purported termination of
the Executive’s employment after a Change in Control and during the term of this Agreement, the term “Date of Termination” will have the meaning set forth in this Section. If the Executive’s employment is terminated for
Disability, Date of Termination means thirty (30) days after Notice of Termination is given, provided that the Executive does not return to the full-time performance of the Executive’s duties during that 30-day period. If the
Executive’s employment is terminated for any other reason, Date of Termination means the date specified in the Notice of Termination, which, in the case of a termination by the Company, cannot be less than 30 days (except in the case of a
termination for Cause) and, in the case of a termination by the Executive, cannot be less than 15 days nor more than 60 days from the date on which the Notice of Termination is given. 

  
 12 

 ARTICLE V 

No Mitigation 
 The
Company agrees that, if the Executive’s employment by the Company is terminated during the term of this Agreement, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by
the Company pursuant to Article III. Further, the amount of any payment or benefit provided for in Article III (other than Section 3.02(d)) will not be reduced by any compensation earned by the Executive as the result of employment by
another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive to the Company, or otherwise. 

ARTICLE VI 

The Executive’s Covenants 

SECTION 6.01. Noncompetition Agreement. In consideration for this Agreement, the Executive will execute, concurrent with the execution
of this Agreement, a noncompetition agreement with the Company; provided, however, that if the Executive has an existing noncompetition agreement with the Company, the Company, rather than entering into a new noncompetition agreement with the
Executive, may instead, as a condition to entering into this agreement, require that the Executive acknowledge and affirm his continuing obligations under such existing noncompetition agreement and re-affirm his agreement to honor the obligations as
set forth in that document. 
 SECTION 6.02. Potential Change in Control. The Executive agrees that, subject to the terms and
conditions of this Agreement, in the event of a Potential Change in Control during the term of this Agreement, the Executive will remain employed by the Company until the earliest of (a) a date that is six months from the date of the Potential
Change of Control, 

  
 13 

 
(b) the date of a Change in Control, (c) the date on which the Executive terminates employment for Good Reason (determined by treating the Potential Change in Control as a Change in
Control in applying the definition of Good Reason) or by reason of death, or (d) the date the Company terminates the Executive’s employment for any reason. 

SECTION 6.03. General Release. The Executive agrees that, notwithstanding any other provision of this Agreement, the Executive will not
be eligible for any Severance Payments under this Agreement unless the Executive timely signs, and does not timely revoke, a General Release in substantially the form attached to this Agreement as Exhibit A. The Executive will be given 21 days to
consider the terms of the General Release. The General Release will not become effective until seven days following the date the General Release is executed. If the Executive does not return the executed General Release to the Company by the end of
the 21-day period, that failure will be deemed a refusal to sign, and the Executive will not be entitled to receive any Severance Payments under this Agreement. In certain circumstances, the 21-day period to consider the General Release may be
extended to a 45-day period. The Executive will be advised in writing if the 45-day period is applicable. In the absence of such notice, the 21-day period applies. 

ARTICLE VII 

Successors; Binding Agreement 

SECTION 7.01. Obligation of Successors. 

(a) In addition to any obligations imposed by law upon any successor to the Company, the Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company
would be required to perform it if no succession had occurred. 

  
 14 

 (b) Subject to Section 7.01(c), failure of the Company to obtain such an assumption and
agreement under Section 7.01(a) prior to the effectiveness of any such succession will be a breach of this Agreement and will entitle the Executive to compensation from the Company in the same amount as the Executive would be entitled to under
this Agreement if the Executive were to terminate employment for Good Reason after a Change in Control, except that, for purposes of implementing the foregoing, the date on which the succession becomes effective will be deemed the Date of
Termination. 
 (c) Payment of benefits under Section 7.01(b) shall be made on the deemed Date of Termination if, and only if, the
succession resulted from a transaction that satisfies the definition of change in control under Section 409A of the Code. If the transaction does not satisfy the definition of change in control under Section 409A, payment of benefits due
under Section 7.01(b) shall be made within 30 days of the Executive’s actual date of termination of employment, subject to the provisions of Section 3.04(d). No interest or earnings shall be paid due to any delay in payment under this
Section 7.01(c). 
 SECTION 7.02. Enforcement Rights of Others. This Agreement will inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. If the Executive dies while any amount is still payable to the Executive under this Agreement,
(other than amounts that, by their terms, terminate upon the Executive’s death), then, unless otherwise provided in this Agreement, all such amounts will be paid in accordance with the terms of this Agreement to the executors, personal
representatives, or administrators of the Executive’s estate. 

  
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 ARTICLE VIII 

Notices 
 For the
purpose of this Agreement, notices and all other communications provided for in the Agreement will be in writing and will be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage
prepaid, addressed to the respective addresses set forth below, or to such other address as either party may furnish to the other in writing in accordance with this Article VIII, except that notice of change of address will be effective only
upon actual receipt: 
 To the Company: 

Zimmer Biomet Holdings, Inc. 

Attention: General Counsel 

345 East Main Street 

Post Office Box 708 

Warsaw, Indiana 46581-0708 

To the Executive: 

					
			  
		
			  
		
			  
		

 ARTICLE IX 

Miscellaneous 

This Agreement will not be construed as creating an express or implied contract of employment and, except as otherwise agreed in writing
between the Executive and the Company, the Executive will not have any right to be retained in the employ of the Company. No provision of this Agreement may be modified, waived, or discharged unless the waiver, modification, or discharge is agreed
to in writing and signed by the Executive and an officer of the Company specifically designated by the Board. No waiver by either party at any time of any 

  
 16 

 
breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed by the other party will be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any other time. Neither party has made any agreements or representations, oral or otherwise, express or implied, with respect to the subject matter of this Agreement that are not expressly set forth in this Agreement.
Except as provided in the following two sentences, the validity, interpretation, construction, and performance of this Agreement will be governed by the laws of the State of Indiana, to the extent not preempted by federal law. This Agreement will at
all times be effected, construed, interpreted, and applied in a manner consistent with the Section 409A Standards, and in resolving any uncertainty as to the meaning or intention of any provision of this Agreement, the interpretation that will
prevail is the interpretation that causes the Agreement to comply with the Section 409A Standards. In addition, to the extent that any terms of this Agreement would subject the Executive to gross income inclusion, interest, or additional tax
pursuant to Code Section 409A, those terms are to that extent superseded by the applicable Section 409A Standards. All references to sections of the Exchange Act or the Code will be deemed also to refer to any successor provisions to those
sections. Any payments provided for under this Agreement will be paid net of any applicable withholding required under federal, state, or local law and any additional withholding to which the Executive has agreed. The obligations of the Company and
the Executive under Articles III, IV, and VI will survive the expiration of the term of this Agreement. 

  
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 ARTICLE X 

Validity 
 The
invalidity or unenforceability of any provision or this Agreement will not affect the validity or enforceability of any other provision of this Agreement, which will remain in full force and effect. 

ARTICLE XI 

Counterparts 
 This
Agreement may be executed in several counterparts, each of which will be deemed to be an original but all of which together will constitute one and the same instrument. 

ARTICLE XII 

Settlement of Disputes; Arbitration 

All claims by the Executive for benefits under this Agreement must be in writing and will be directed to and determined by the Board. Any
denial by the Board of a claim for benefits under this Agreement will be delivered to the Executive in writing and will set forth the specific reasons for the denial and the specific provisions of this Agreement relied upon. The Board will afford a
reasonable opportunity to the Executive for a review of the decision denying a claim and will further allow the Executive to appeal to the Board a decision of the Board within 60 days after notification by the Board that the Executive’s
claim has been denied. Any further dispute or controversy arising under or in connection with this Agreement will be settled exclusively by arbitration in Warsaw, Indiana in accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. Each party will bear its own expenses in the arbitration for attorneys’ fees, for its witnesses, and for other expenses of presenting its case.
Other arbitration costs, 

  
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including arbitrators’ fees, administrative fees, and fees for records or transcripts, will be borne equally by the parties. Notwithstanding anything in this Article to the contrary, if the
Executive prevails with respect to any dispute submitted to arbitration under this Article, the Company will reimburse or pay all reasonable legal fees and expenses that the Executive incurred in connection with that dispute as required by
Section 3.05. 
 ARTICLE XIII 

Definitions 
 For
purposes of this Agreement, the following terms will have the meanings indicated below: 
 (a) “Accounting Firm” means an
accounting firm, other than the Company’s independent auditors, that is designated as one of the four largest accounting firms in the United States. 

(b) “Award Plan” means any of the Company’s 2009 Stock Incentive Plan, 2006 Stock Incentive Plan, 2001 Stock Incentive
Plan or TeamShare Stock Option Plan. 
 (c) “Base Amount” has the meaning stated in Code Section 280G(b)(3). 

(d) “Beneficial Owner” has the meaning stated in Rule 13d-3 under the Exchange
Act. 
 (e) “Board” means the Board of Directors of the Company. 

(f) “Cause” for termination by the Company of the Executive’s employment, after any Change in Control, means
(1) the willful and continued failure by the Executive to substantially perform the Executive’s duties with the Company (other than any such failure resulting from the Executive’s incapacity due to physical or mental illness or any
such actual or anticipated failure after the issuance of a Notice of Termination for Good Reason by the 

  
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Executive pursuant to Section 4.01) for a period of at least 30 consecutive days after a written demand for substantial performance is delivered to the Executive by the Board, which
demand specifically identifies the manner in which the Board believes that the Executive has not substantially performed the Executive’s duties; (2) the Executive willfully engages in conduct that is demonstrably and materially injurious
to the Company or its subsidiaries, monetarily or otherwise; or (3) the Executive is convicted of, or has entered a plea of no contest to, a felony. For purposes of clauses (1) and (2) of this definition, no act, or failure to act, on
the Executive’s part will be deemed “willful” unless it is done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive’s act, or failure to act, was in the best interest of the
Company. 
 (g) A “Change in Control” will be deemed to have occurred if any of the following events occur: 

(1) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the
securities beneficially owned by that Person any securities acquired directly from the Company or its affiliates) representing 20% or more of the combined voting power of the Company’s then-outstanding securities; or 

(2) during any period of two consecutive years (not including any period prior to the execution of this Agreement), individuals
who at the beginning of the period constitute the Board and any new director (other than a director designated by a Person who has entered into an agreement with the Company to effect a transaction described in clause (1), (3) or (4) of
this paragraph whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) 

  
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of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously approved), cease for any reason to
constitute a majority of the Board; or 
 (3) the shareholders of the Company approve a merger or consolidation of the
Company with any other corporation, other than (A) a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior to the merger or consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company, at least 75% of the combined
voting power of the voting securities of the Company or the surviving entity outstanding immediately after the merger or consolidation; or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar
transaction) in which no Person acquires more than 50% of the combined voting power of the Company’s then-outstanding securities; or 

(4) the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all the Company’s assets. 
 Notwithstanding the foregoing, a Change in Control will not include any
event, circumstance, or transaction occurring during the six-month period following a Potential Change in Control that results from the action of any entity or group that includes, is affiliated with, or is wholly or partly controlled by the
Executive; provided, further, that such an action will not be taken into account for this purpose if it occurs within a six-month period following a Potential Change in Control resulting from the action of any entity or group that does
not include the Executive. 

  
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 (h) “COBRA” means the continuation coverage provisions of the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended. 
 (i) “Code” means the Internal Revenue Code of 1986, as amended
from time to time, and interpretative rules and regulations. 
 (j) “Company” means Zimmer Biomet Holdings, Inc., a
Delaware corporation, and any successor to its business and/or assets that assumes and agrees to perform this Agreement by operation of law, or otherwise (except in determining, under Section XIII(g), whether or not any Change in Control of the
Company has occurred in connection with the succession). 
 (k) “Company Shares” means shares of common stock of the
Company or any equity securities into which those shares have been converted. 
 (l) “Date of Termination” has the meaning
stated in Section 4.02. 
 (m) “Disability” has the meaning stated in the Company’s short-term or long-term
disability plan, as applicable, as in effect immediately prior to a Change in Control. 
 (n) “Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time, and interpretive rules and regulations. 
 (o) “Excise Tax”
means any excise tax imposed under Code Section 4999. 
 (p) “Executive” means the individual named in the first
paragraph of this Agreement. 
 (q) “General Release” has the meaning stated in Section 6.03. 

(r) “Good Reason” for termination by the Executive of the Executive’s employment means the occurrence (without the
Executive’s express written consent) of any one of the following acts by the Company, or failures by the Company to act, unless, in the case of 

  
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any act or failure to act described in paragraph (1), (4), (5), (6), or (7) below, the act or failure to act is corrected prior to the Date of Termination specified in the
Executive’s Notice of Termination: 
 (1) the assignment to the Executive of any duties inconsistent with the
Executive’s status as an executive officer of the Company or a substantial adverse alteration in the nature or status of the Executive’s responsibilities from those in effect immediately prior to a Change in Control; 

(2) a reduction by the Company in the Executive’s annual base salary as in effect on the date of this Agreement or as the
same may be increased from time to time, or the level of the Executive’s entitlement under the Incentive Plan as in effect on the date of this Agreement or as the same may be increased from time to time; 

(3) the Company’s requiring the Executive to be based more than 50 miles from the Company’s offices at which the
Executive is based immediately prior to a Change in Control (except for required travel on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations immediately prior to the Change in
Control), or, in the event the Executive consents to any such relocation of his offices, the Company’s failure to provide the Executive with all of the benefits of the Company’s relocation policy as in operation immediately prior to the
Change in Control; 
 (4) the Company’s failure, without the Executive’s consent, to pay to the Executive any
portion of the Executive’s current compensation (which means, for purposes of this paragraph (4), the Executive’s annual base salary as in effect on the date of this Agreement, or as it may be increased from time to time, and the
awards earned pursuant to the Incentive Plan) or to pay to the Executive any portion of an installment of deferred compensation under any deferred compensation program of the Company, within seven days of the date the compensation is due; 

  
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 (5) the Company’s failure to continue in effect any compensation plan in
which the Executive participates immediately prior to a Change in Control, which plan is material to the Executive’s total compensation, including, but not limited to, the Incentive Plan and the Award Plan or any substitute plans adopted prior
to the Change in Control, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to that plan, or the Company’s failure to continue the Executive’s participation in such a plan
(or in a substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of the Executive’s participation relative to other participants, as existed at the time of the
Change in Control; 
 (6) the Company’s failure to continue to provide the Executive with benefits substantially similar
to those enjoyed by the Executive under any of the Company’s pension (including, without limitation, to the extent applicable to the Executive, the Company’s Savings and Investment Program, including the Company’s Benefit Equalization
Plan for the Savings and Investment Program), life insurance, medical, health and accident, or disability plans in which the Executive was participating at the time of the Change in Control; the taking of any action by the Company that would
directly or indirectly materially reduce any of those benefits or deprive the Executive of any material fringe benefit enjoyed by the Executive at the time of a Change in Control; or the Company’s failure to provide the Executive with the
number of paid vacation days to which the Executive is entitled on the basis of years of service with the Company in accordance with the Company’s normal vacation policy in effect at the time of the Change in Control; or 

(7) any purported termination of the Executive’s employment that is not effected pursuant to a Notice of Termination
satisfying the requirements of Section 4.01; for purposes of this Agreement, no such purported termination will be effective. 

  
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 The Executive’s right to terminate the Executive’s employment for Good Reason will not
be affected by the Executive’s incapacity due to physical or mental illness. The Executive’s continued employment will not constitute consent to, or a waiver of rights with respect to, any act or failure to act that constitutes Good
Reason. 
 Notwithstanding the foregoing, the occurrence of an event that would otherwise constitute Good Reason will cease to be an event
constituting Good Reason if the Executive does not timely provide a Notice of Termination to the Company within 120 days of the date on which the Executive first becomes aware (or reasonably should have become aware) of the occurrence of that
event. 
 (s) “Incentive Plan” means the Company’s Executive Performance Incentive Plan. 

(t) “Notice of Termination” has the meaning stated in Section 4.01. 

(u) “Options” means options for Shares granted to the Executive under the Award Plan. 

(v) “Person” has the meaning stated in section 3(a)(9) of the Exchange Act, as modified and used in sections 13(d)
and 14(d) of the Exchange Act; however, a Person will not include (1) the Company or any of its subsidiaries, (2) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries,
(3) an underwriter temporarily holding securities pursuant to an offering of those securities, or (4) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership
of stock of the Company. 

  
 25 

 (w) “Potential Change in Control” will be deemed to have occurred if any
one of the following events occurs: 
 (1) the Company enters into an agreement, the consummation of which would result in
the occurrence of a Change in Control; 
 (2) the Company or any Person publicly announces an intention to take or to
consider taking actions that, if consummated, would constitute a Change in Control; 
 (3) any Person who is or becomes
the Beneficial Owner, directly or indirectly, of securities of the Company representing 10% or more of the combined voting power of the Company’s then-outstanding securities, increases that Person’s beneficial ownership of those securities
by 5% or more over the percentage so owned by that Person on the date of this Agreement; or 
 (4) the Board adopts a
resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred. 
 (x) “Retirement
Date” means the later of (1) age 65, or (2) another date for retirement by the Executive that has been approved by the Board at any time prior to a Change in Control. 

(y) “Savings Plan” means the Company’s Savings and Investment Program, which, for purposes of this Agreement, will be
deemed to include the Benefit Equalization Plan of the Company and Its Subsidiary or Affiliated Corporations Participating in the Company’s Savings and Investment Program. 

  
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 (z) “Section 409A Standards” means the standards for nonqualified deferred
compensation plans established by Code Section 409A. 
 (aa) “Severance Payments” means the payments described in
Section 3.02. 
 (bb) “Shares” means shares of the common stock, $0.01 par value, of the Company. 

(cc) “Total Payments” has the meaning stated in Section 3.03(a). 

 

							
	EXECUTIVE				ZIMMER BIOMET HOLDINGS, INC.
				
	  
				By:		  

  
 27

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