Retention Award Repayment Agreement dated May 7, 2018, between Mark R. Haley and Pier 1 Imports Inc

Exhibit 10.26

RETENTION AWARD REPAYMENT AGREEMENT

A retention award of $345,000 (the “Award”) will be paid by Pier 1 Imports, Inc. (the “Company”) or an Affiliate to Mark R. Haley (“Executive”) in a cash lump sum on or around May 7, 2018 (“Payment Date”) subject to the conditions set forth below.

“Affiliate” means any entity which is controlling, controlled by, or under common control with the Company.

“Cause” a determination by the Chief Executive Officer that any of the following has occurred:

(a) the Executive’s failure to follow the reasonable and lawful directions of any superior officer of the Company or an Affiliate, provided the direction(s) is not materially inconsistent with the duties or responsibilities of the Executive’s position, or to perform Executive’s duties with the Company or an Affiliate;

(b) the Executive’s charge with, indictment for, conviction of, or entry of a plea of guilty or nolo contendere or no contest with respect to:

(i) any felony, or any misdemeanor involving dishonesty or moral turpitude (including pleading guilty or nolo contendere to a felony or lesser charge which results from plea bargaining), whether or not such felony, crime or lesser offense is connected with the business of the Company or an Affiliate, or

(ii) any crime connected with the business of the Company or an Affiliate;

(c) the Executive’s engaging in any gross negligence or gross misconduct in connection with the performance of Executive’s duties hereunder, which is, or is likely to be, injurious to the Company or an Affiliate, its financial condition, or its reputation;

(d) the Executive’s commission of or engagement in any act of fraud, misappropriation, dishonesty, or embezzlement, whether or not such act was committed in connection with the business of the Company or an Affiliate; or

(e) the Executive’s violation of the Company’s policy against discrimination or harassment, its equal employment opportunity policy, or the Company’s code of business conduct, or a violation of any other policy or procedure of the Company.

“Good Reason” shall mean, without Executive’s written consent,

(a) a reduction of more than ten percent (10%) in the sum of Executive’s annual base salary and target STI award as a percentage of base salary from those in effect as of the Payment Date;

(b) a material diminution in Executive’s authority, duties or responsibilities; or

(c) Executive’s mandatory relocation to an office more than fifty (50) miles from the primary location at which Executive is required to perform Executive’s duties as of the date of this Agreement.

In each case of Good Reason, Executive must provide the Company with written notice of the facts giving rise to a claim that Good Reason exists for purposes of this Agreement, within ten (10) days of the initial existence of such Good Reason event, and the Company shall have the right to remedy such event within thirty (30) days after receipt of Executive’s written notice (“the thirty (30) day period”). If the Company

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remedies the Good Reason event within the thirty (30) day period, the Good Reason event shall cease to exist. If the Company does not remedy the Good Reason event within the thirty (30) day period, and Executive does not incur a termination of employment within ten (10) days following the earlier of: (i) the date the Company notifies Executive that it does not intend to remedy the Good Reason or does not agree that there has been a Good Reason event, or (ii) the expiration of the thirty (30) day period, the Good Reason event shall cease to exist. Notwithstanding the foregoing, if Executive fails to provide written notice to the Company of the facts giving rise to a claim of Good Reason within ten (10) days of the initial existence of such Good Reason event, the Good Reason event shall cease to exist as of the eleventh (11^th) day following the later of its initial occurrence or Executive’s knowledge thereof.

In the event Executive is obligated to repay or reimburse the Company or an Affiliate for the Award as provided in this Agreement, Executive authorizes the Company or an Affiliate to deduct any portion of the Award which Executive is obligated to repay or reimburse from any wages due and owing to Executive including, but not limited to, Executive’s final paycheck.  Executive understands and agrees that, if such monies are not sufficient to repay the full amount Executive owes, Executive will still remain obligated to reimburse or pay the balance to the Company or an Affiliate.