INDEMNIFICATION OF KEY CORPORATE OFFICERS
MEDICAL, DENTAL, AND RELATED EXPENSES
I. Plan Participants:
The group covered includes the President, Chief Executive Officer, Chief Financial Officer and Senior Vice
II. Type of Plan:
An indemnification will be paid to each member of the covered group at the end of each fiscal year. This payment
will be equal to the verified medical, dental, and related costs incurred by plan participants and their dependents
during the fiscal year. Additionally, applicable taxes on these payments will be paid by Pier 1.
III. Expenses Covered:
1. For all matters presently covered by the Pier 1 group medical plan, the indemnification plan will reimburse for
deductibles and co-payments required under the group medical plan.
2. All reasonable and customary dental expenses not solely cosmetic in nature, including 100% of all procedures
not covered by the group dental plan and reimbursement for deductibles and co-payments required under the
group dental plan for those procedures covered under the group dental plan.
3. Eye examinations, lenses and contact lenses (no frames).
4. Annual physical examinations.
5. For prescribed drugs and medicines, the plan will reimburse for deductibles and co-payments required under
the group medical plan.
IV. Maximum Benefit:
The maximum indemnification (payment + "grossed up" taxes) for each executive will not exceed $7500.
V. Effective Date of Changes to Plan:
March 1, 1987
Advances against the annual indemnifications may be paid as frequently as monthly.
At the end of the fiscal year, each plan participant will present documents (medical bills, prescription drug
receipts, etc.) in a prescribed reporting format verifying their total covered expenses to the plan custodian. The
plan custodian will communicate the prescribed reporting format. The plan custodian will verify expenses and
issue the participant a check equal to the difference between the verified expenses