PIER 1 IMPORTS INC/DE
NON-EMPLOYEE DIRECTOR COMPENSATION PLAN, AS AMENDED
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<TYPE>EX-10.16.2
<SEQUENCE>5
<FILENAME>d56130exv10w16w2.htm
<DESCRIPTION>NON-EMPLOYEE DIRECTOR COMPENSATION PLAN, AS AMENDED
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Exhibit&nbsp;10.16.2
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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">PIER 1 IMPORTS<BR>
NON-EMPLOYEE DIRECTOR COMPENSATION PLAN<BR>
ADOPTED JUNE 24, 1999<BR>
AS AMENDED MARCH 25, 2008

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Cash Compensation (payable in advance at beginning of each fiscal year)</U>

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<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
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<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top" align="right"><B>&#149;</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-Employee Director Annual Retainer </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top" align="right"><B>&#149;</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit Committee Chair Annual Retainer </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top" align="right"><B>&#149;</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Compensation Committee Chair Annual Retainer </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">25,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top" align="right"><B>&#149;</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nominating/Corporate Governance
Committee Chair Annual Retainer </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="right">&nbsp;</TD>
    <TD valign="top" align="right"><B>&#149;</B></TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-Executive Chairman of the Board Annual Retainer </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">75,000</TD>
    <TD>&nbsp;</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Effective March&nbsp;1, 2009 (beginning of fiscal year 2010) fifty percent (50%) of such cash
compensation shall, in lieu of being paid to the Non-Employee Director, be deferred into Director
Deferred Stock Units.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Director Deferred Stock Units </U>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pursuant to the Director Deferred Stock Unit Awards program set forth in the <I>Pier 1
Imports, Inc. 2006 Stock Incentive Plan</I>, as amended.</TD>
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<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Non-Employee Director may elect to defer all or a portion of the remaining 50% (in
whole percentages) of their non-mandatory deferred cash fees (i.e., director, committee
chair and chairman annual retainers) for an upcoming fiscal year into an equivalent value
of deferred stock units, provided that any such deferral election is made on or before and
becomes irrevocable as of the December&nbsp;31 immediately preceding such fiscal year and is
effective for the entire fiscal year.</TD>
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<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Deferrals of the director annual retainer both mandatory and voluntary (other than the
portion of the deferral representing committee chair or chairman annual retainers) are
credited with an additional 25% of the deferred amount.</TD>
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<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the time a Non-Employee Director ceases to be a Director of the Company, the deferred
stock units credited to such Director at that time shall be adjusted by Pier 1 Imports to
remove from the credited amount (i)&nbsp;any portion of the deferred stock units applicable to
the time period following the Director ceasing to be a Director of the Company, plus (ii)
an amount of deferred stock units equal to any cash compensation paid to the Non-Employee
Director for such time period (such units to be valued as of the cash compensation payment
date).</TD>
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