Exhibit 10.1
SUMMARY PLAN DESCRIPTION
OF
PIER 1 IMPORTS LIMITED SEVERANCE
PLAN
Restated as of January 1,
2009
NATURE AND PURPOSE OF PLAN:
The Pier 1 Imports Limited Severance Plan (the
“Plan”) is a welfare benefit plan which is intended to
provide severance benefits to certain employees of Pier 1
Imports, Inc. and its subsidiaries and affiliates (the
“Employer”).
PLAN BENEFIT ELIGIBILITY:
Employer’s regular employees who are
involuntarily terminated as a result of any reduction in force in
connection with a reorganization of the Employer’s corporate
home office and/or field operations are eligible for Plan severance
benefits. Certain officers of Employer who have individual
employment agreements or post-employment consulting agreements may
not be eligible for Plan severance benefits.
YOUR PLAN CONTRIBUTIONS:
You do not have to pay anything for your Plan
coverage.
DEFINITION OF A “YEAR OF
SERVICE”:
The amount of your Plan benefits is based in
part upon your total “Years of Service” with the
Employer. A “Year of Service” is each twelve
consecutive month period of continuous employment with the Employer
determined from your most recent date of hire by the
Employer. For purposes of determining your “Years of
Service,” any partial year is disregarded.
PLAN BENEFITS:
Your Plan severance pay generally will be as
follows:
·
If you are classified by the
Employer as a non-exempt employee, your Plan severance pay amount
is equal to one “Weeks’ Base Pay” (defined below)
for each of your Years of Service up to a maximum of thirteen
Weeks’ Base Pay. If you have twenty or more Years of
Service, your Plan severance pay amount is equal to twenty
Weeks’ Base Pay.
·
If you are classified by the
Employer as an exempt employee, your Plan severance pay amount is
equal to two Weeks’ Base Pay for each of your Years of
Service up to a maximum of twenty Weeks’ Base Pay. If
you have twenty or more Years of Service, your Plan severance pay
amount is equal to twenty-eight Weeks’ Base Pay.
·
If you are classified by the
Employer as an exempt employee and you hold a director level
position at the time of termination, your Plan severance pay amount
is equal to three Weeks’ Base Pay for each of your Years of
Service up to a maximum of twenty Weeks’ Base Pay. If
you have twenty or more Years of Service, your Plan severance pay
amount is equal to twenty-eight Weeks’ Base Pay.
·
If you are classified by the
Employer as an exempt employee and you are an officer of the
Employer at the time of termination, your Plan severance pay amount
is equal to three Weeks’ Base Pay for each of your Years of
Service up to a maximum of thirty-six Weeks’ Base Pay.
If
1
you have twenty or more Years of
Service, your Plan severance pay amount is equal to forty-two
Weeks’ Base Pay.
In all cases, your severance pay amount will be
reduced by any pay in lieu of notice which the Employer pays to you
in connection with your termination of employment. If you
become entitled to a Plan severance pay benefit, your Plan
severance pay will be paid to you in a lump sum cash payment as
soon as practicable after your employment with the Employer is
terminated and the release described below is effective and in no
event later than the fifteenth day of the third calendar month
immediately following the calendar year in which your employment
with the Employer is terminated.
For purposes of the foregoing schedule, your
“Week Base Pay” is the result obtained by dividing the
annual amount of your base salary or regular hourly pay as in
effect immediately preceding the date of your involuntary
termination by fifty-two; provided, however, regular hourly pay for
non-exempt employees who work in field operations will be based on
average weekly hours worked during the six months preceding the
date of termination. Your “Week Base Pay” will
not be based upon any overtime pay, bonuses, benefits or incentive
or other special compensation.
Notwithstanding the foregoing, the Employer may,
on a case-by-case basis with respect to any individual covered
employee or group of covered employees and in its sole and absolute
discretion (i) decrease or increase the severance pay amount
(including, without limitation, a deduction to zero) payable under
the Plan to such individual covered employee or group of covered
employees, and/or (ii) include or exclude certain other
severance benefits, such as outplacement services, available under
the Plan to such individual covered employee or group of covered
employees. Further, the Employer may on a case-by-case basis
and in its sole and absolute discretion waive any condition or
rule imposed under the Plan as a condition for eligibility for
severance pay benefits under the Plan.
RELEASE AGREEMENT:
As an absolute condition to your entitlement to
any Plan severance benefits, you will be required to release the
Employer, in a form required by Employer, from any and all claims
and causes of action which you may have against any of them and to
agree to certain confidentiality and nondisclosure
agreements.
HOW TO FILE A CLAIM:
Generally, the Employer’s administrative
staff will automatically determine if you are eligible for Plan
severance benefits, notify you that you are and distribute your
Plan severance benefit to you after you have delivered the required
release. If your employment with the Employer has terminated,
and you believe that you are entitled to Plan benefits and have not
received them (or any confirmation that you will receive them), a
claim for benefits under the Plan may be made by written notice to
the Plan Administrator.
CLAIMS PROCEDURES:
For purposes of these procedures,
the term “Adverse Benefit Determination” refers to any
denial, reduction or termination of or failure to provide or make
payment (in whole or in part) for a Plan benefit, including any
denial, reduction, termination or failure to provide or make
payment that is based on a determination of a Claimant’s
eligibility to participate in the Plan and the term
“Claimant” refers to a person (or an authorized
representative) who has filed or desires to file a claim for a Plan
benefit.
In any case of an Adverse Benefit
Determination of a claim for a Plan benefit, the Plan Administrator
shall furnish written notice to the affected Claimant within a
reasonable period of time but not later than ninety days after
receipt of such claim for Plan benefits. Any notice that denies a
benefit claim of a Claimant in whole or in part shall, in a manner
calculated to be understood by the Claimant:
·
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