diff --git a/hi.cabal b/hi.cabal
--- a/hi.cabal
+++ b/hi.cabal
@@ -1,5 +1,5 @@
 name: hi
-version: 1.1.0.2
+version: 1.1.0.3
 cabal-version: >=1.8
 build-type: Simple
 license: BSD3
diff --git a/src/Hi.hs b/src/Hi.hs
--- a/src/Hi.hs
+++ b/src/Hi.hs
@@ -17,7 +17,7 @@
 import qualified Data.ByteString.Char8   as BS
 import qualified Data.ByteString.Lazy    as LBS (toChunks)
 import           Data.List               ((\\))
-import           Data.Maybe              (fromJust)
+import           Data.Maybe              (fromMaybe)
 import qualified Data.Text               as T (pack, unpack)
 import           Data.Text.Encoding      (decodeUtf8)
 import           Data.Text.Lazy.Encoding (encodeUtf8)
@@ -63,7 +63,7 @@
 -- 2. Substitute arguments
 -- 3. Drop regular files if template file with same name exists
 process :: Option -> Files -> Files
-process Option {..} = dropExtraRegularFiles . map go
+process Option {..} = dropExtraRegularFiles . map go . dropFilesInRoot
   where
     go (TemplateFile path content) = TemplateFile (rewritePath' path) (substitute' content)
     go (RegularFile  path content) = RegularFile  (rewritePath' path) content
@@ -77,9 +77,10 @@
                        ,("year", year)
                        ]
 
--- | Return 'Context' obtained by given 'Options'
+-- | Return 'Context' obtained by given 'Options'. An identifier which has no
+-- corresponding context will not be substituted.
 context :: [(String, String)] -> Context
-context opts x = T.pack . fromJust $ lookup (T.unpack x) opts
+context opts x = let x' = T.unpack x in T.pack . (fromMaybe ("$" ++ x')) $ lookup x' opts
 
 postProcess :: Option -> IO ()
 postProcess Option {packageName, afterCommands} = do
@@ -102,3 +103,17 @@
                                            then go paths ys
                                            else y : go paths ys
     go paths (y@(TemplateFile _ _):ys) = y : go paths ys
+
+-- | Drop all files in root directory.
+--
+-- >>> dropFilesInRoot [RegularFile "package-name/README.md" (BS.pack "a"), RegularFile "foo" (BS.pack "b")]
+-- [RegularFile {getFilePath = "package-name/README.md", getFileContents = "a"}]
+--
+dropFilesInRoot :: Files -> Files
+dropFilesInRoot []     = []
+dropFilesInRoot (x:xs) = go (splitPath $ getFilePath x)
+  where
+    go [] = dropFilesInRoot xs
+    go (path:_) = if "package-name/" == path
+                    then x : dropFilesInRoot xs
+                    else dropFilesInRoot xs