On January 29, 2020, Kirkland’s Inc. (the “Company”) entered into Stock Option Cancellation Agreements (the “Cancellation Agreements”) with certain members of its management team to which such individuals surrendered and cancelled certain previously granted stock options (the “Cancelled Options”) to purchase shares of the Company’s common stock in order to make additional shares available under the Company’s Amended and Restated 2002 Equity Incentive Plan for future equity grants to Company personnel. to the terms of the Cancellation Agreements, these individuals and the Company acknowledged and agreed that the surrender and cancellation of the Cancelled Options was without any expectation to receive, and was without any obligation on the Company to pay or grant, any cash, equity awards or other consideration presently or in the future in regard to the cancellation of the Cancelled Options.

The Cancelled Options that were surrendered had an exercise price that ranged from $7.14 to $25.52 per share. The aggregate number of shares underlying the Cancelled Options held by each of the individuals surrendering the Cancelled Options was as follows: Steven Woodward, Chief Executive Officer – 122,549; Nicole Strain, Executive Vice President and Chief Financial Officer – 37,258; Carter Todd, Vice President and General Counsel – 38,760; Tracy Parker, Vice President Store Operations and Visual Presentation – 35,106; Anthony Price, Vice President Marketing – 33,426; Amy Sullivan, Vice President Merchandising – 33,256; John Stacy, Senior Vice President Supply Chain – 22,006; Keith Watkins, Vice President and Chief Information Officer – 15,406.

Under applicable accounting standards, the Company will account for the cancellation as a settlement for no consideration, and the Company will record the previously unrecognized compensation cost related to the Cancelled Stock Options of $861,000 during the three months ended February 1, 2020.

The foregoing description of the Cancellation Agreements is qualified in its entirety by reference to the form of Stock Option Cancellation Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporations herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibit is furnished as part of this Report:

KIRKLAND'S, INC Exhibit
EX-10.1 2 exhibit101-formofstockopti.htm EXHIBIT 10.1 FORM OF STOCK OPTION CANCELLATION AGREEMENT Exhibit Exhibit 10.1FORM OF KIRKLAND’S,…
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About Kirkland’s, Inc. (NASDAQ:KIRK)

Kirkland’s, Inc. is a specialty retailer of home decor and gifts in the United States. The Company’s merchandise categories include wall decor, art, mirrors, lamps, decorative accessories, accent furniture, textiles, fragrance and accessories, frames, housewares, impulse and personal accessories, outdoor living and artificial floral products. The Company’s stores also offer a range of holiday merchandise during seasonal periods, as well as items carried throughout the year suitable for gift-giving. The Company’s average stores generally carry approximately 4,700 Stock Keeping Units (SKUs). The Company’s stores operate under various names, such as Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet and The Kirkland Collection. It operates approximately 380 stores in over 30 states, as well as an e-commerce enabled Website, www.kirklands.com. Its stores’ locations include Texas, Florida, California, Georgia, North Carolina, Alabama, Arizona, Virginia and Ohio.