SENIOR MANAGEMENT ANNUAL BONUS PLAN
1. Purpose. The purposes of the Pier 1 Imports, Inc. Senior Management Annual Bonus Plan (the "Plan") are to
encourage superior performance and reward senior management of the Company for effective service and to
strengthen the ability of the Company to retain and attract the senior management upon which continued growth
and profitability of the Company depends.
2. Definitions. For purposes of the Plan, the following terms shall have the meanings set forth below unless
otherwise expressly provided or unless the context otherwise requires:
"Board of Directors" means the Board of Directors of the Company.
"Bonus" means any annual incentive bonus award granted pursuant to the Plan, the payment of which shall be
contingent upon the attainment of Performance Goals with respect to a Plan Year.
"Code" means the Internal Revenue Code of 1986, as amended.
"Committee" means a committee appointed by the Board of Directors, which committee shall be composed of
not less than two directors of the Company who each qualify as an "outside director" under Treasury Regulations
Section 1.162-27 promulgated under Section 162(m) of the Code or any successor provisions. The
Compensation Committee of the Board of Directors shall be the Committee unless its membership does not
"Company" means Pier 1 Imports, Inc., a Delaware corporation, or any successor corporation.
"Participant" means an executive officer of the Company specified by the Committee for participation in the Plan.
"Performance Goals" means the criteria and objectives which must be met during the Plan Year as a condition of
the Participant's receipt of payment with respect to a Bonus, as described in Section 4 hereof.
"Plan Year" means a fiscal year of the Company for which awards are determined under the Plan.
3. Administration. The Plan shall be administered by the Committee. Subject to the provisions of the Plan, the
Committee shall have full and final authority to admi