Document:

Exhibit
10.1

 

EXECUTION
VERSION

 

VOTING
AND LOCK UP AGREEMENT

 

This
VOTING AND LOCK UP AGREEMENT is made and entered into on February 5, 2018 (this “Agreement”) by and
among the persons identified on Schedule A (collectively, the “Ospraie Group”, and each individually,
a “member of the Ospraie Group”), the persons identified on Schedule B (collectively, the “Ardsley
Group”, and each individually, a “member of the Ardsley Group”), the persons identified on Schedule
C (collectively, the “Marrone Group”, and each individually, a “member of the Marrone Group”),
the persons identified on Schedule D (collectively, the “Waddell Group”, and each individually, a “member
of the Waddell Group”, and the Waddell Group, together with the Ospraie Group, the Ardsley Group and the Marrone Group,
the “Major Shareholder Groups”, and each member thereof, a “party” or a “member
of a Major Shareholder Group” and the Waddell Group, together with the Ardsley Group and the Marrone Group, the “Selected
Major Shareholder Groups”, and each member thereof, a “member of a Selected Major Shareholder Group”)
and, solely with respect to Section 8(g) hereof, Marrone Bio Innovations, Inc., a Delaware corporation (the “Company”),
and is effective on the Closing Date.

 

WHEREAS,
in connection with a Securities Purchase Agreement, by and among the Company and the Buyers party thereto (the “Purchase
Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Purchase Agreement, to issue
and sell to certain members of the Ospraie Group and certain members of the Ardsley Group (i) shares of Common Stock and (ii)
warrants (the “Ospraie Warrants” and the “Ardsley Warrants”, respectively) to purchase shares
of Common Stock;

 

WHEREAS,
in connection with an Omnibus Amendment No. 4 to Note, by and among the Company, Ospraie Ag Science LLC and members of the Waddell
Group (the “Note Amendment”), the Company has agreed, upon the terms and subject to the conditions of the Note
Amendment, to issue to certain members of the Waddell Group (i) shares of Common Stock and (ii) warrants (the “Waddell
Warrants” and, together with the Ospraie Warrants and the Ardsley Warrants, the “Warrants”) to purchase
shares of Common Stock;

 

WHEREAS,
following the completion of the transactions contemplated by the Purchase Agreement, members of the Ospraie Group will be, collectively,
the beneficial owners of 30,666,667 of the outstanding shares of Common Stock, in addition to 30,666,667 shares of Common Stock
issuable upon exercise of the Ospraie Warrants;

 

WHEREAS,
members of the Ardsley Group have disclosed publicly that they are, collectively, the beneficial owners of 3,681,580 of the outstanding
shares of Common Stock, and following the completion of the transactions contemplated by the Purchase Agreement, will be, collectively,
the beneficial owners of 10,348,247 of the outstanding shares of Common Stock, in addition to 5,333,333 shares of Common Stock
issuable upon exercise of the Ardsley Warrants;

 

WHEREAS,
members of the Waddell Group have disclosed publicly that they are, collectively, the beneficial owners of 4,726,192 of the outstanding
shares of Common Stock, in addition to 4,000,000 shares of Common Stock subject to Options, and following the completion of the
transactions contemplated by the Note Amendment, will be, collectively, the beneficial owners of 24,726,192 of the outstanding
shares of Common Stock, in addition to 8,000,000 shares of Common Stock subject to Options;

 

WHEREAS,
members of the Marrone Group have disclosed publicly that they are, collectively, the beneficial owners of 854,885 of the outstanding
shares of Common Stock, in addition to 565,594 shares of Common Stock subject to Options;

 

WHEREAS,
members of the Major Shareholder Groups have engaged, to date, in various discussions and communications concerning certain Board
compositional and related matters;

 

    	 

    	 

    

 

WHEREAS,
each of the Major Shareholder Groups has determined that it is in each party’s best interests to reach an agreement with
respect to the composition of the Board, the election of directors at the 2018 Meeting and certain related matters; and

 

WHEREAS,
the entry into this Agreement by the Major Shareholder Groups is a material inducement to the each party’s entry into the
Purchase Agreement or Note Amendment, as applicable;

 

NOW,
THEREFORE, in consideration of and reliance upon the mutual covenants, undertakings and agreements contained herein, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

 

1.
Definitions. For purposes of this Agreement:

 

“2018
Meeting” means the Company’s annual or special meeting of stockholders held in 2018 at which, among other things,
director-candidates of the Company to serve in Class II of the Board will be considered and elected by the Company’s stockholders,
and every action or approval by written consent or resolution of the holders of shares of Common Stock in lieu of any such meeting.

 

“Affiliate”
has the meaning set forth in Rule 12b-2 under the Exchange Act.

 

“Associate”
has the meaning set forth in Rule 12b-2 under the Exchange Act.

 

“beneficial
owner” and “beneficial ownership” have the meanings set forth in Rule 13d-3 under the Exchange Act.

 

“Board”
means the Company’s board of directors.

 

“Charter”
means the Company’s Certificate of Incorporation in effect on the date hereof, as the same hereafter may be amended and
in effect from time to time.

 

“Closing
Date” has the meaning set forth in the Purchase Agreement.

 

“Common
Stock” means the common stock, $0.00001 par value, of the Company.

 

“Common
Equivalents” means, collectively, Options and Convertible Securities.

 

“Convertible
Securities” means any stock or securities (other than Options) convertible into or exercisable or exchangeable for shares
of Common Stock.

 

“Controlled
Affiliate” means, with respect to any person, any corporation, limited liability company, partnership, joint venture,
trust or other entity or enterprise, whether or not for profit, that is directly or indirectly controlled by such person. For
purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a person, whether through the ownership of voting securities, by contract or otherwise;
provided that direct or indirect beneficial ownership of capital stock or other interests in an entity or enterprise entitling
the holder thereof to cast 50% or more of the total number of votes generally entitled to be cast in the election of directors
(or persons performing comparable functions) of such entity or enterprise shall be deemed to constitute control for purposes of
this definition.

 

“Director”
means any member of the Board.

 

    	 

    	 

    

 

“Eligible
Nominee” means any nominee for Director: (i) who is capable of being elected to the Board without violation of, and
who has complied with, any applicable law or the requirements of any federal, state, provincial, local or other court, governmental
authority, tribunal, commission or regulatory body or self-regulatory body, including any securities exchange and regulatory authority
with jurisdiction over the Company or its activities, or any political or other subdivision, department, agency or branch of any
of the foregoing, (ii) who must not have engaged in acts or omissions constituting a breach of such individual’s fiduciary
duties, if any, to the Company and its shareholders, (iii) who must not have engaged in acts or omissions that involve intentional
misconduct or an intentional violation of law and that are felonies or violations of law involving moral turpitude or (iv) must
not have engaged in any transaction involving the Company during the term of such individual’s membership on the Board,
if any, from which such individual derived an improper personal benefit that was not disclosed to the Board prior to the authorization
of such transaction if such disclosure is required pursuant to the Company’s governing documents and corporate governance
policies, in case of each of the foregoing (i)-(iv), only as determined by the Board reasonably and in good faith after consultation
with outside legal counsel.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

“person”
means any individual, corporation (including not-for-profit), general or limited partnership, limited liability company or partnership,
joint venture, estate, trust, association, organization or other entity of any kind or nature.

 

“Principal
Market” means The NASDAQ Capital Market.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“SEC”
means the United States Securities and Exchange Commission.

 

2.
Representations and Warranties of the Major Shareholder Groups. The Major Shareholder Groups, and each member of the Major
Shareholder Groups, severally, and not jointly, represents and warrants to the other parties to this Agreement, with respect to
itself, herself or himself, as the case may be, that: (a) such member, in the case of an individual, has the legal capacity, power
and authority to execute, deliver and perform the terms and provisions of this Agreement and to consummate the transactions contemplated
hereby, (b) such member, in the case of an entity, has the corporate, general partnership, limited partnership or limited liability
company power and authority, as applicable, to execute, deliver and perform the terms and provisions of this Agreement and to
consummate the transactions contemplated hereby, (c) this Agreement has been duly and validly authorized, executed, and delivered
by such member, constitutes a valid and binding obligation and agreement of such member, and is enforceable against such member
in accordance with its terms, except as the enforcement hereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or similar laws affecting the rights and remedies of creditors and subject to general equity
principles, (d) the execution, delivery and performance of this Agreement by such member does not and will not (i) violate or
conflict with any law, rule, regulation, order, judgment or decree applicable to it, her or him, (ii) result in any material breach
or material violation of, or constitute a material default (or an event which, with notice or lapse of time or both, could become
a material default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination,
amendment, acceleration or cancellation of, any agreement, contract, commitment, understanding or arrangement, in each case to
which one or more members of such Major Shareholder Group is a party or by which it, she or he is bound and which is material
to such Major Shareholder Group’s business or operations or (iii) in the case of any entity, violate or conflict with its
organizational documents, (e) such member is the beneficial owner of the number of shares of Common Stock set forth with respect
to such member in the report of beneficial ownership of the Common Stock on the latest Schedule 13D or Schedule 13G or amendment
thereto filed by the applicable Major Shareholder Group with the SEC prior to the date of this Agreement (each, a “Group
Report”), and (f) except as set forth in such Major Shareholder Group’s Group Report, no Affiliate or Associate
of any member of such Major Shareholder Group holds or owns beneficially any shares of Common Stock or any voting or economic
interests therein or any rights or arrangements, agreements, commitments or understandings relating thereto, including, without
limitation, any option, warrant or right to acquire or subscribe for the purchase of Common Stock, or is a party or beneficiary
to or of any synthetic security arrangement, any stock borrowing or lending arrangement, any cash settled derivative, “total
return” or other form of “swap”, or any “put”, “call” ‘hedge” or “short”
position or arrangement.

 

    	 

    	 

    

 

3.
Voting. At the 2018 Meeting, each member of the Ardsley Group, each member of the Marrone Group and each member of the
Waddell Group shall cause all shares of the Company’s Common Stock beneficially owned by it, her or him or by its, her or
his respective Controlled Affiliates to be present for quorum purposes and to be affirmatively voted in accordance with written
instructions (the “Voting Instructions”), delivered at least three (3) business days prior to the date of the
2018 Meeting, from the members of the Ospraie Group with respect to up to two (2) Board seats; provided, however,
that no Party shall be obligated to vote in favor of a Director nominee that is not an Eligible Nominee. The Voting Instructions
shall include a confirmation that each person for whom the members of the Selected Major Shareholder Groups are requested to vote
for is an Eligible Nominee.

 

4.
Grant of Irrevocable Proxy. Upon the failure of any member of the Ardsley Group, the Marrone Group or the Waddell Group
to vote its, her or his Common Stock in accordance with the terms of this Agreement, such party hereby grants to any person as
designated by the Ospraie Group a proxy coupled with an interest in all Common Stock beneficially held by such member (the “Proxy
Shares”), which proxy shall be irrevocable until this Agreement terminates pursuant to its terms or this Section 4 is
amended to remove such grant of proxy, to vote at each regular or special meeting of stockholders in the manner provided in Section
3 hereof. Each member of the Ardsley Group, each member of the Marrone Group and each member of the Waddell Group hereby revokes
all other proxies and powers of attorney with respect to the voting rights with respect to the Proxy Shares that such persons
may have appointed or granted that may conflict with the provisions of this Agreement, and each member of the Ardsley Group, each
member of the Marrone Group and each member of the Waddell Group shall not grant any proxy or power of attorney or enter into
any other voting agreement with respect to the Proxy Shares that conflicts with the provisions of this Agreement. This proxy granted
hereby by each member of the Ardsley Group, each member of the Marrone Group and each member of the Waddell Group is irrevocable
and is coupled with an interest, and each party hereto hereby acknowledges and agrees that such grant of proxy to the person designated
by the Ospraie Group is coupled with an interest, is irrevocable.

 

5.
Public Statements. No party hereto shall make any public statements with respect to the matters covered by this Agreement
without the prior mutual consent of the Ospraie Group, the Ardsley Group, the Marrone Group and the Waddell Group. The foregoing
shall not prevent (i) any Major Shareholder Group, in accordance with Rule 14a-1(l)(2)(iv) under the Exchange Act (but not including
the parenthetical exception in such clause (iv)) and solely in respect of shares of Common Stock beneficially owned by it, her
or him from announcing its, her or his voting intention with respect to any publicly announced proposals relating to a merger,
acquisition, disposition of all or substantially all of the assets of the Company, tender offer or exchange offer for a majority
of any class of capital stock of the Company or other business combination involving the Company requiring a vote or tender of
stockholders of the Company; or (ii) the making of any factual statement which, after consultation by such Major Shareholder Group
with legal counsel, such Major Shareholder Group determines in good faith is required by applicable legal process, subpoena, or
legal requirement or as part of a response to a request for information from any governmental authority with jurisdiction over
the party from whom information is sought.

 

6.
SEC Filings. Each Major Shareholder Group shall file with the SEC within the time periods required by the Exchange Act
and the rules and regulation promulgated thereunder, an amendment to such party’s Group Report (or a Schedule 13D, if such
Group Report was on Schedule 13G) or an initial Schedule 13D, which shall (i) report such Major Shareholder Group’s execution
and delivery of this Agreement, (ii) file a copy of this Agreement as exhibit thereto and (iii) otherwise comply with the requirements
of Schedule 13D.

 

    	 

    	 

    

 

7.
Other Agreements.

 

(a)
Each member of a Major Shareholder Group shall report any changes in its, her or his ownership of Common Stock to the Company
and make all applicable filings (under the Securities Act and the Exchange Act) with respect thereto on a timely basis.

 

(b)
Each member of a Major Shareholder Group hereby agrees that it, she or he shall cause each of its, her or his Controlled Affiliates,
current and future, to comply with the terms of this Agreement.

 

(c)
Anything to the contrary express or implied in this Agreement notwithstanding, the parties hereby agree that this Agreement and
the rights and obligations of the parties hereunder shall terminate and be of no further force or effect from and after the earlier
to occur of (i) such time, if any, that the Common Stock no longer is registered pursuant to and the Company no longer is subject
to the reporting requirements of any of Sections 12, 13 or 15(d) of the Exchange Act and (ii) such time as the Ospraie Group no
longer maintains the Lead Investor Minimum Threshold (as defined in the Purchase Agreement).

 

8.
Lock Up.

 

(a)
Each member of a Selected Major Shareholder Group agrees that, commencing on the date hereof and ending on the 180th day following
the Closing Date (the “Lock Up Period”), such member of a Selected Major Shareholder Group will not, and will
cause all of its, her or his Affiliates not to sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any
option to purchase, make any short sale or otherwise dispose of or agree to dispose of, directly or indirectly, any shares of
Common Stock or Common Stock Equivalents, or establish or increase a put equivalent position or liquidate or decrease a call equivalent
position within the meaning of Section 16 of the Exchange Act and the rules and regulations of the SEC promulgated thereunder
with respect to any shares of Common Stock or Common Stock Equivalents owned directly by any member of a Selected Major Shareholder
Group (including holding as a custodian) or with respect to which it, she or he has beneficial ownership within the rules and
regulations of the SEC (collectively, the “Lock Up Shares”),

 

(b)
In addition to the restrictions set forth in Section 8(a), each member of the Marrone Group agrees that during the Lock Up Period,
such member of the Marrone Group will not, and will cause all of its or her Affiliates not to (i) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any of the Lock Up
Shares, whether any such transaction set forth in Section 8(a) or Section 8(b)(i) is to be settled by delivery of shares of Common
Stock or other securities, in cash or otherwise, (ii) make any demand for or exercise any right or cause to be filed a registration
statement, including any amendments thereto, with respect to the registration of any shares of Common Stock or Common Stock Equivalents
or (iii) publicly disclose the intention to do any of the foregoing.

 

(c)
The foregoing restriction is expressly agreed to preclude each member of a Selected Major Shareholder Group, and any Affiliate
thereof, from engaging in any hedging or other transaction which is designed to or which reasonably could be expected to lead
to or result in a sale or disposition of the Lock Up Shares even if the Lock Up Shares would be disposed of by someone other than
a member of a Selected Major Shareholder Group. Such prohibited hedging or other transactions would include, without limitation,
any short sale or any purchase, sale or grant of any right (including, without limitation, any put or call option) with respect
to any of the Lock Up Shares or with respect to any security that includes, relates to, or derives any significant part of its
value from the Lock Up Shares which, with respect to each member of the Ardsley Group and each member of the Waddell Group, is
designed to or which reasonably could be expected to lead to or result in a sale or disposition of the Lock Up Shares even if
the Lock Up Shares would be disposed of by someone other than a member of a Selected Major Shareholder Group.

 

(d)
Notwithstanding the foregoing, with respect to any member of the Waddell Group or any member of the Ardsley Group, the restrictions
in this Section 8 shall not apply to any transfers of the Lock Up Shares, provided that the transferee thereof agree to be bound
in writing by the restrictions set forth herein in form and substance satisfactory to the members of the Ospraie Group.

 

    	 

    	 

    

 

(e)
Notwithstanding the foregoing, with respect to any member of the Marrone Group, the restrictions shall not apply to (i) any transfers
of the Lock Up Shares as a bona fide gift or gifts, provided that the donee or donees thereof agree to be bound in writing by
the restrictions set forth herein, (ii) any transfers to any trust for the direct or indirect benefit of the undersigned or the
immediate family of the undersigned, provided that the trustee of the trust agrees to be bound in writing by the restrictions
set forth herein, and provided further that any such transfer shall not involve a disposition for value, (iii) any distributions
by a trust to its beneficiaries, provided that such beneficiaries agree to be bound in writing by the restrictions set forth herein,
(iv) distributions of the Lock Up Shares to limited partners, limited liability company members or stockholders of the undersigned
provided that such Persons agree to be bound in writing by the restrictions set forth herein or (v) the entry by the undersigned
into any plan under Rule 10b5-1 of the Exchange Act, provided that in the case of clause (v), no sales shall be permitted to be
made under such plan, and no public disclosure or filing under the Exchange Act by any person shall be required, or made voluntarily,
in connection with the adoption of any such plan prior to the expiration of the Lock-Up Period. For purposes of this Lock-Up Agreement,
“immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin.

 

(f)
Each member of a Selected Major Shareholder Group now has, and, except as contemplated by the immediately preceding sentence,
for the duration of this Lock-Up Agreement will have, good and marketable title to the Lock Up Shares, free and clear of all liens,
encumbrances, and claims whatsoever. Each member of a Selected Major Shareholder Group also agrees and consents to the entry of
stop transfer instructions with the Company’s transfer agent (the “Transfer Agent”) and registrar against
the transfer of the Lock Up Shares except in compliance with the foregoing restrictions.

 

(g)
In order to enforce the covenants set forth in this Section 8, the Company shall impose irrevocable stop-transfer instructions
preventing the Transfer Agent from effecting any actions in violation of this Section 8.

 

(h)
Each member of the Selected Major Stockholder Group acknowledges and agrees that the provisions set forth in this Section 8 are
irrevocable and shall be binding upon the heirs, legal representatives, successors, and assigns of each member of a Selected Major
Shareholder Group.

 

9.
Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be deemed
given when received if delivered personally; when transmitted if transmitted by facsimile (with written confirmation of transmission)
or by electronic mail; the business day after it is sent, if sent for next day delivery to a domestic address by overnight courier
(providing proof of delivery), in each case to the parties at the following addresses (or at such other address for a party as
shall be specified by like notice):

 

If
to the Ospraie Group:

 

Ospraie
Ag Science LLC

c/o
Dwight Anderson

437
Madison Avenue, 28th Floor

New
York NY 10022

Attention:
Dwight Anderson

Email:
dwighta@ospraie.com

Telephone:
212-602-5000

 

With
a copy (for informational purposes only) to:

 

ParkRiver
Fund Solutions

437
Madison Avenue, 28th Floor

New
York, NY 10022

Attention:
Scott Baglio

Telephone:
212-602-5002

Email:
sbaglio@parkriverfs.com

 

    	 

    	 

    

 

with
a copy (which shall not constitute notice pursuant to this Section 9) to:

 

Schulte
Roth & Zabel LLP

919
Third Avenue

New
York, New York 10022

Attention:
Eleazer Klein, Esq.

Facsimile:
(212) 593-5955

Telephone:
(212) 756-2376

 

If
to the Ardsley Group:

 

Ardsley
Partners Renewable

Energy
Fund, L.P.

262
Harbor Drive, 4th Floor

Stamford,
CT 06902

Attention:
Steve Napoli

Facsimile:
(203) 355-0715

Telephone:
(203) 564-4230

Email:
steve@ardsley.com

 

with
a copy (which shall not constitute notice pursuant to this Section 9) to:

 

Tannenbaum
Helpern Syracuse &

Hirschtritt
LLP

900
Third Avenue

New
York, NY 10022

Attention:
Wayne H. Davis

Tel:
(212) 508-6705

Fax:
(646) 390-6971

Email:
davis@thsh.com

 

If
to the Marrone Group:

 

Marrone
Bio Innovations, Inc.

1540 Drew Avenue

Davis, CA 95618

Attention:
Pamela G. Marrone, Ph.D.

Facsimile: (530) 302-0189

Telephone:
(530) 302-8289

 

with
a copy (which shall not constitute notice pursuant to this Section 9) to:

 

Morrison
& Foerster LLP

425
Market Street

San
Francisco, CA 94105

Attention:
Alfredo B. D. Silva, Esq.

Facsimile:
(415) 276-7201

Telephone:
(415) 258-6213

 

    	 

    	 

    

 

If
to the Waddell Group:

 

c/o
Ivy Investment Management Company

Waddell
& Reed Investment Management Company

6300
Lamar Avenue

Overland
Park, KS 66202

Attention:
Zachary H. Shafran,

Senior
Vice President

Facsimile:
(913) 236-1781

Telephone:
(913) 236-1842

Email:
zshafran@waddell.com

 

with
a copy (which shall not constitute notice pursuant to this Section 9) to:

 

Kimberly
A. Wingate

c/o
Ivy Investment Management Company

Waddell
& Reed Investment Management Company

6300
Lamar Avenue

Overland
Park, KS 66202

Telephone:
(913) 236-2672

Email:
kwingate@waddell.com

 

10.
Entire Agreement; Amendment and Waiver.

 

(a)
This Agreement contains the entire understanding of the parties hereto with respect to and supersedes all prior agreements, both
written and oral, between the parties, or any of them, relating to, the subject matter hereof.

 

(b)
This Agreement may be amended only by a written instrument duly executed by the parties hereto or their respective successors
or assigns. No failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude
any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative
and are not exclusive of any other remedies provided by law.

 

11.
Governing Law. This Agreement and any action, claim or legal proceeding directly or indirectly based upon, relating to
arising out of this Agreement or the negotiation, execution or performance hereof, shall be governed by, and construed in accordance
with, the internal procedural and substantive laws of the State of Delaware, irrespective of any applicable principles of conflicts
of laws.

 

12.
Jurisdiction; Service of Process; Waiver of Jury Trial.

 

(a)
Each of the parties irrevocably submits to the exclusive jurisdiction of the Court of Chancery of the State of Delaware or, if
such court lacks subject matter jurisdiction, the United States District Court sitting in New Castle County in the State of Delaware,
for the purpose of any action, claim or legal proceeding directly or indirectly based upon, relating to arising out of this Agreement
or the negotiation, execution or performance hereof, and each of the parties hereby irrevocably agrees that all claims in respect
to such action, claim or legal proceeding shall be brought in, and may be heard and determined, exclusively in such state or federal
courts. Each of the parties irrevocably and unconditionally waives any objection to the laying of venue in, and any defense of
inconvenient forum to the maintenance of, any action or proceeding so brought. Each of the parties agrees that a final judgment
in any action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.

 

    	 

    	 

    

 

(b)
Each of the parties irrevocably consents to the service of the summons and complaint and any other process in any other action
or proceeding relating to the transactions contemplated by this Agreement, on behalf of itself or its property, by personal delivery
of copies of such process to such party at the addresses set forth in Section 9. Nothing in this Section 12 shall affect the right
of any party to serve legal process in any other manner permitted by law.

 

(c)
EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED
AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE
TO A TRIAL BY JURY IN ANY LITIGATION DIRECTLY OR INDIRECTLY BASED UPON, RELATING TO ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY OR THE NEGOTIATION, EXECUTION OR PERFORMANCE HEREOF OR THEREOF. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT
(i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATION
OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

13.
Specific Performance. Each party hereto acknowledges and agrees, on behalf of itself, herself or himself and its, her or
his Affiliates, that irreparable harm would occur in the event any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed that the parties will be entitled to specific relief
hereunder, including, without limitation, an injunction or injunctions to prevent and enjoin breaches of the provisions of this
Agreement and to enforce specifically the terms and provisions hereof in any state or federal court in the State of Delaware,
in addition to any other remedy to which they may be entitled at law or in equity. Each party hereto agrees, on behalf of itself,
herself or himself and its, her or his Affiliates and Associates, that any requirements for the securing or posting of any bond
with such remedy are hereby waived.

 

14.
Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of
the parties (whether by operation of law or otherwise) without the prior written consent of the other parties. No assignment by
any party shall relieve such party of any of its, her or his obligations hereunder. Subject to the foregoing, this Agreement will
be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and permitted assigns.

 

15.
No Third-Party Beneficiaries. Nothing in this Agreement is intended to confer on any person other than the parties hereto
or their respective successors and assigns, and their respective Affiliates to the extent provided herein, any rights, remedies,
obligations or liabilities under or by reason of this Agreement.

 

16.
Mutual Drafting. Each party has participated in the drafting of this Agreement, which each party acknowledges is the result
of extensive negotiations between the parties. Accordingly, the parties agree that in the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden
of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 

17.
Miscellaneous. The headings of the Sections are inserted for convenience of reference only and are not deemed to affect
the interpretation of this Agreement. Unless the context requires otherwise, words incorporating the singular shall include the
plural and vice versa and words importing a gender shall include every gender.

 

18.
Counterparts; Facsimile or Electronic Signatures. This Agreement may be executed in one or more counterparts, and by the
different parties in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken
together shall constitute one and the same agreement. This Agreement or any counterpart may be executed and delivered by facsimile
copies or delivered by electronic communications by portable document format (.pdf), each of which shall be deemed an original.

 

Signature
Page Follows

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatories of the parties as of the
date first written above.

 

	 	OSPRAIE
    GROUP
	 	 
	 	OSPRAIE
    AG SCIENCE LLC
	 	 	 
	 	By:	/s/
    Dwight Anderson
	 	Name:	Dwight
    Anderson
	 	Title:	Managing
    Member

 

	 	DWIGHT
    ANDERSON
	 	 
	 	 	/s/
    Dwight Anderson

 

Signature
Page – Voting and Lock Up Agreement

 

    	 

    	 

    

 

	 	ARDSLEY
    GROUP
	 	 
	 	ARDSLEY
    ADVISORY PARTNERS
	 	 
	 	By:	/s/
    Steve Napoli
	 	Name:	Steve Napoli
	 	Title:	Partner

 

	 	ARDSLEY PARTNERS I
	 	 	 
	 	By:	/s/
    Steve Napoli
	 	Name:	Steve
    Napoli
	 	Title:
    	Partner

 

	 	PHILLIP
J. HEMPLEMAN
	 	 	 
	 	 	/s/
    Phillip J. Hempleman

 

	 	ARDSLEY PARTNERS FUND II, L.P.
	 	 	 
	 	By:	/s/
    Steve Napoli
	 	Name:	Steve
    Napoli
	 	Title:	Partner

 

	 	ARDSLEY PARTNERS ADVANCED HEALTHCARE FUND, L.P.
	 	 	 
	 	By:	/s/
    Steve Napoli
	 	Name:	Steve
    Napoli
	 	Title:	Partner

 

	 	ARDSLEY PARTNERS RENEWABLE ENERGY FUND
	 	 	 
	 	By:	/s/
    Steve Napoli
	 	Name:	Steve
    Napoli
	 	Title:	Partner

 

	 	ARDSLEY
DUCKDIVE FUND, L.P.
	 	 	 
	 	By:	/s/
    Steve Napoli
	 	Name:	Steve
    Napoli
	 	Title:	Partner

 

Signature
Page – Voting and Lock Up Agreement

 

    	 

    	 

    

 

	 	WADDELL
    GROUP
	 	 
	 	IVY
    SCIENCE & TECHNOLOGY FUND
	 	 	 
	 	By:	Ivy
    Investment Management Company,
	 	 	its
    investment adviser,
	 	 	 
	 	By:	/s/
    Zachary H. Shafran
	 	Name:	Zachary
    H. Shafran
	 	Title:	Senior
    Vice President
	 	 	 
	 	WADDELL
    & REED ADVISORS SCIENCE & TECHNOLOGY FUND
	 	 	 
	 	By:	Waddell
    & Reed Investment Management
	 	 	Company,
    its investment adviser,
	 	 	 
	 	By:	/s/
    Zachary H. Shafran
	 	Name:	Zachary
    H. Shafran
	 	Title:	Senior
    Vice President
	 	 	 
	 	IVY
    VIP SCIENCE & TECHNOLOGY
	 	 	 
	 	By:	Ivy
    Investment Management Company,
	 	 	its
    investment adviser,
	 	 	 
	 	By:	/s/
    Zachary H. Shafran
	 	Name:	Zachary
    H. Shafran
	 	Title:	Senior
    Vice President

 

Signature
Page – Voting and Lock Up Agreement

 

    	 

    	 

    

 

	 	MARRONE GROUP
	 	 	 
	 	PAMELA G. MARRONE, PH.D.
	 	 	 
	 	By:	/s/ Zachary H. Shafran
	 	 	/s/
    Pamela G. Marrone, Ph.D.

 

	Acknowledged
    by:	 
	 	 
	MARRONE
    BIO INNOVATIONS, INC.	 
	 	 	 
	By:	/s/
    Pamela G. Marrone, Ph.D.	 
	Name:	Pamela
    G. Marrone, Ph.D.	 
	Title:	Chief
    Executive Officer	 

 

Signature
Page – Voting and Lock Up Agreement

 

    	 

    	 

    

 

Schedule
A

 

Ospraie
Ag Science LLC

Dwight
Anderson

 

    	 

    	 

    

 

Schedule
B

 

Ardsley
Advisory Partners

Ardsley
Partners I

Phillip
J. Hempleman

Ardsley
Partners Fund II, L.P.

Ardsley
Partners Advanced Healthcare Fund, L.P.

Ardsley
Partners Renewable Energy Fund

Ardsley
Duckdive Fund, L.P.

 

    	 

    	 

    

 

Schedule
C

 

Pamela
G. Marrone, Ph.D.

 

    	 

    	 

    

 

Schedule
D

 

Ivy
Science & Technology Fund

Waddell
& Reed Advisors Science & Technology Fund

Ivy
VIP Science & TechnologyExhibit

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of February 5, 2018, between Michelle Graul (the "Executive") and KIRKLAND'S, INC., a Tennessee corporation with principal offices in Nashville, Tennessee (the "Company").

RECITALS

WHEREAS, Executive is currently employed by the Company pursuant to an Employment Agreement entered into by Executive and the Company, dated March 30, 2005, as amended (the “Original Agreement”);
WHEREAS, the Company desires to employ the Executive as its Vice President of Store Development, and the Executive desires to serve in such capacity pursuant to the terms of this Agreement; and
WHEREAS, in connection with Executive’s new position the parties wish to enter into this Agreement to memorialize the terms of Executive’s continued employment by the Company and to replace and supersede the Original Agreement.
NOW, THEREFORE, in consideration of the premises and the parties’ mutual covenants, it is agreed:
1.Definitions.  
(a)“Affiliate” means any person or entity controlling, controlled by or under common control with the Company.
(b)“Base Salary” means Executive’s current annual base salary as defined in Section 4(a).
(c)“Board” means the Board of Directors of the Company.  
(d)“Cause” means the occurrence of any of the following, as determined in good faith by the Board: (i) alcohol abuse or use of controlled drugs (other than in accordance with a physician’s prescription) by Executive; (ii) illegal conduct or gross misconduct of Executive which is materially and demonstrably injurious to the Company or its Affiliates including, without limitation, fraud, embezzlement, theft or proven dishonesty; (iii) Executive’s conviction of a misdemeanor involving moral turpitude or a felony; (iv) Executive’s entry of a guilty or nolo contendere plea to a misdemeanor involving moral turpitude or a felony, (v) Executive’s material breach of any agreement with, or duty owed to, the Company or its Affiliates, or (vi) Executive’s failure, refusal or inability to perform, in any material respect, Executive’s duties to the Company or its Affiliates, which failure continues for more than fifteen (15) days after written notice thereof from the Company.
(e)“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.
(f)“Committee” means the Compensation Committee of the Board of Directors.  
(g)“Confidential Information” means all information respecting the business and activities of the Company, or any Affiliate, including, without limitation, the terms and provisions of this Agreement, information relating to vendor relations, inventory procurement and management, inventory distribution, marketing and sales, store operations, the clients, customers, suppliers, employees, consultants, computer or other files, projects, products, computer disks or other media, computer hardware or computer software programs, marketing plans, financial information, methodologies, know-how, processes, practices, approaches, projections, forecasts, formats, systems, data gathering methods and/or strategies of the Company or any Affiliate.  Notwithstanding the immediately preceding sentence, Confidential Information shall not include any information that is, or becomes, generally available to the public (unless such availability occurs as a result of Executive's breach of any portion of Section 7(a) of this Agreement).
(h) “Disability” means Executive’s termination of employment with the Company as a result of Executive’s incapacity due to reasonably documented physical or mental illness that is reasonably expected to prevent Executive from performing Executive’s duties for the Company on a full-time basis for more than six consecutive months; provided however, that no such incapacity will be deemed to be a “Disability” unless Executive would also be deemed to be “Disabled” under Code Section 409A.
(i)“Good Reason” means the occurrence of any of the following: (i) the assignment to Executive of any duties inconsistent with Executive’s position, authority, duties or responsibilities, or any other action by the Company which results in a material diminution in such position, authority, duties or responsibilities; (ii) a reduction by the Company in Executive’s annual salary, provided that if the salaries of substantially all of the Company’s senior executive officers (including the Company’s 

President and CEO) are contemporaneously and proportionately reduced, a reduction in Executive’s salary will not constitute “Good Reason” hereunder; (iii) the failure by the Company, without Executive’s consent, to pay to her any portion of her current compensation, except pursuant to a compensation deferral elected by Executive, other than an isolated and inadvertent failure which is remedied by the Company promptly after receipt thereof given by Executive; (iv) the relocation of the Company’s principal executive offices to a location more than 35 miles from the location of such offices on the Effective Date, or the Company’s requiring Executive to be based anywhere other than the Company’s principal executive offices, except for required travel on the Company’s business; or (v) the failure of the Company to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement.
Notwithstanding the foregoing, Good Reason shall not be deemed to exist unless Executive gives the Company written notice within ninety (90) days after the occurrence of the event which Executive believes constitutes the basis for Good Reason, specifying the particular act or failure to act which Executive believes constitutes the basis for Good Reason.  If the Company fails to cure such act or failure to act, within thirty (30) days after receipt of such notice, Executive may terminate employment for Good Reason within thirty (30) days following the end of that cure period.  For the avoidance of doubt, if such act is not curable, Executive may terminate employment for Good Reason upon providing such notice.
(j)“Invention” means any invention, discovery, improvement or innovation with regard to any facet of the business of the Company or its Affiliates, whether or not patentable, made, conceived, or first actually reduced to practice by Executive, alone or jointly with others, in the course of, in connection with, or as a result of service as an employee of the Company or any of its Affiliates, including any art, method, process, machine, manufacture, design or composition of matter, or any improvement thereof.  Each Invention shall be the sole and exclusive property of the Company.  
(k)“Restricted Non-Competition Period” means, subject to the Company’s ability to extend the Restricted Non-Competition Period as described in Section 8(d) below, twelve (12) months after any termination of Executive’s employment hereunder, provided that the Restricted Non-Competition Period shall be extended for the period, if any, that Executive is in default under the restrictions contained in Section 7(d).
(l)“Restricted Non-Solicitation Period” means twenty-four (24) months after any termination of Executive's employment hereunder, provided that the Restricted Non-Solicitation Period shall be extended for the period, if any, that Executive is in default under the restrictions contained in Section 7(e).
2.Employment; Scope of Duties.  The Company hereby employs Executive, and Executive accepts employment as the Company’s Vice President of Store Development.  During the term of this Agreement, Executive shall report to the Company’s President and Chief Executive Officer, and shall perform those duties as from time to time assigned.
3.Term.  The term of this Agreement will commence on February 5, 2018 (the “Effective Date”), and shall continue until terminated as provided herein.
4.Compensation and Benefits.
(a)Base Salary.  As base compensation for the services rendered hereunder to the Company, Executive shall be paid an annual base salary of $275,000, payable in accordance with the Company’s standard payroll practices as in effect from time to time.  The Committee will review Executive’s base salary on an annual basis and such base salary shall be subject to upward (but not downward) adjustment, as determined in the discretion of the Committee.  
(b)Annual Bonus.  For each fiscal year ending during Executive’s employment, Executive will be eligible to earn an annual bonus.  The target amount of that bonus will be 40% percent of Executive's Base Salary for the applicable fiscal year.  The actual bonus payable with respect to a particular year will be determined by the Committee, based on the achievement of corporate and individual performance objectives established by the Committee.  Any bonus payable under this paragraph will be paid within 2 1⁄2 months following the end of the applicable fiscal year and will only be paid if Executive remains continuously employed by the Company through the actual bonus payment date. 
(c)Equity Incentives.  Equity incentives may be granted to Executive from time to time pursuant to the terms and conditions of the Plan, at the discretion of the Committee.
(d)Benefit Plans.  Executive shall be eligible to participate in and be covered on the same basis as other senior management of the Company, under all employee benefit plans and programs maintained by the Company, including without limitation retirement, health insurance and life insurance.  
(e)Paid Time Off.  Executive will be entitled to paid time off each year in accordance with the policies of the Company, as in effect from time to time.

5.Expense Reimbursement.
(a) Standard Business Expenses.  Executive shall be reimbursed for those reasonable expenses (as determined by the Company in accordance with then existing policies) necessarily incurred by Executive in the performance of the duties herein as are specifically approved by the Company and as verified by vouchers, receipts, or other evidence of expenditure and business necessity as from time to time required by the Company.  All reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Code Section 409A to the extent that such reimbursements are subject to Code Section 409A, including, where applicable, the requirements that (i) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (ii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred and (iii) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit.
6.Other Employment; Conduct.  Executive agrees to devote all working time and efforts to performing the duties required hereunder.  Executive shall not engage in other employment or become involved in other business ventures requiring Executive’s time, absent the prior written consent of the Chief Executive Officer, which consent may be withheld or denied in the sole discretion of the Chief Executive Officer.  Executive shall at all times conduct such duties and Executive’s personal affairs in a manner that is satisfactory to the Company and so as to not in any manner injure the reputation of or unfavorably reflect upon the Company or third persons or entities connected therewith.
7.Restrictive Covenants.  To induce the Company to enter into this Agreement and in recognition of the compensation to be paid to Executive pursuant to this Agreement, Executive agrees to be bound by the provisions of this Section 7 (the “Restrictive Covenants”). These Restrictive Covenants will apply without regard to whether any termination or cessation of Executive's employment is initiated by the Company or Executive, and without regard to the reason for that termination or cessation.  All provisions of this Section 7 shall survive the termination of this Agreement.
(a)Confidentiality.  Executive shall not, during the term of this Agreement and at any time thereafter, without the prior express written consent of the Company, directly or indirectly divulge, disclose or make available or accessible any Confidential Information to any person, firm, partnership, corporation, trust or any other entity or third party (other than when required to do so in good faith to perform Executive's duties and responsibilities or when required to do so by a lawful order of a court of competent jurisdiction, any governmental authority or agency, or any recognized subpoena power).  In addition, Executive shall not create any derivative work or other product based on or resulting from any Confidential Information (except in the good faith performance of her duties under this Agreement).  Executive shall also proffer to the Board's designee, no later than the effective date of any termination of Executive’s employment with the Company for any reason, and without retaining any copies, notes or excerpts thereof, all memoranda, computer disks or other media, computer programs, diaries, notes, records, data, customer or client lists, marketing plans and strategies, and any other documents consisting of or containing Confidential Information that are in Executive's actual or constructive possession or which are subject to her control at such time. 
(b)Ownership of Inventions.  Each Invention made, conceived or first actually reduced to practice by Executive, whether alone or jointly with others, during the term of this Agreement and each Invention made, conceived or first actually reduced to practice by Executive, within one year after the termination of this Agreement, which relates in any way to work performed for the Company or its Affiliates during the term of this Agreement, shall be promptly disclosed in writing to the Board.  Such report shall be sufficiently complete in technical detail and appropriately illustrated by sketch or diagram to convey to one skilled in the art of which the invention pertains, a clear understanding of the nature, purpose, operations, and, to the extent known, the physical, chemical, biological or other characteristics of the Invention.  Executive agrees to execute an assignment to the Company or its nominee of Executive’s entire right, title and interest in and to any Invention, without compensation beyond that provided in this Agreement.  Executive further agrees, upon the request of the Company and at its expense, that Executive will execute any other instrument and document necessary or desirable in applying for and obtaining patents in the United States and in any foreign country with respect to any Invention.  Executive further agrees, whether or not Executive is then an employee of the Company, to cooperate to the extent and in the manner reasonably requested by the Company in the prosecution or defense of any claim involving a patent covering any Invention or any litigation or other claim or proceeding involving any Invention covered by this Agreement, but all expenses thereof shall be paid by the Company.   
(c)Works for Hire.  Executive also acknowledges and agrees that all works of authorship, in any format or medium, created wholly or in part by Executive, whether alone or jointly with others, in the course of performing Executive’s duties for the Company or any of its Affiliates, or while using the facilities or money of the Company or any of its Affiliates, whether or not during Executive’s work hours, are works made for hire (“Works”), as defined under United States copyright law, and that the Works (and all copyrights arising in the Works) are owned exclusively by the Company.  To the extent any such Works are not deemed to be works made for hire, Executive agrees, without compensation beyond that provided in this Agreement, to execute an assignment to the Company or its nominee of all right, title and interest in and to such Work, including all rights of copyright arising in or related to the Works.

(d)Restrictive Non-Competition Covenant.  Executive agrees that during the term of this Agreement and for the Restricted Non-Competition Period, Executive will not, directly or indirectly, own, manage, operate, control, be employed by, participate in, lend money, advise or furnish services or information of any kind (including consulting services) to, be compensated in any manner by, or be connected in any way with the management, ownership, operation or control of any of the entities list on Exhibit A hereto.  Executive understands and acknowledges that the type of retail business conducted by the Company is national in scope.  Executive further acknowledges that these restrictions are reasonable and necessary to protect the legitimate interests of the Company and its Affiliates and that the duration and geographic scope of these restrictions are reasonable given the nature of this Agreement and the position Executive will hold within the Company.  Executive further acknowledges that these restrictions are included herein in order to induce the Company to employ Executive pursuant to this Agreement and in connection with the increased compensation and benefits provided hereunder and that the Company would not have entered into this Agreement, increased Executive’s compensation and other benefits or otherwise employed Executive in the absence of these restrictions.
During the term of this Agreement and for the Restricted Non-Competition Period, Executive agrees to (a) notify any prospective employer of the existence of this restrictive non-competition covenant, and (b) notify the Company of Executive’s commencement of employment with any other employer, along with the identity of such new employer.  
(e)Restrictive Non-Solicitation Covenant.  
1.Covenant Not to Solicit Company Employees.  During the term of this Agreement and for the Restricted Non-Solicitation Period, Executive agrees that Executive shall not directly or indirectly on Executive’s own behalf or on behalf or any other employer solicit any present employee of the Company to terminate their employment relationship with the Company.  
2.Covenant Not to Solicit Customers.  During the term of this Agreement and for the Restricted Non-Solicitation Period, Executive shall not (except on the Company’s behalf), directly or indirectly, on Executive’s own behalf or on behalf of any other person, firm, partnership, corporation or other entity, contact, solicit, divert, induce, call on, take away, do business or otherwise harm the Company’s relationship, or attempt to contact, solicit, divert, induce, call on, take away, do business or otherwise harm the Company’s relationship, with any past, present or prospective customer of the Company or any of its Affiliates (each, a “Customer”).  Following the term of this Agreement, a past or prospective Customer shall be limited to such Customer measured within the two (2) year period prior to the date of termination hereunder.  
8.Termination.
(a)Termination Rights.  The Company may terminate Executive’s employment hereunder at any time either for any or no reason, and Executive may terminate Executive’s employment hereunder for Good Reason or upon thirty (30) days advance notice without Good Reason.  Upon any such termination, Executive shall and shall be deemed to have immediately resigned from any and all officer, director and other positions he then holds with the Company and its Affiliates (and this Agreement shall act as notice of resignation by Executive without any further action required by Executive).  Upon any such termination, Executive shall be entitled only to such compensation and benefits described in this Section 8.   
(b)Company Terminates Executive Without Cause or Executive Resigns For Good Reason.  If the Company terminates Executive’s employment without Cause or if Executive resigns for Good Reason, the Company shall, subject to Section 8(e) below, pay the Executive one (1) times Executive’s Base Salary for the year in which such termination shall occur in accordance with the Company’s regular payroll cycles.  
(c)Other Terminations.  If Executive’s employment with the Company ceases for any reason other than as described in Section 8(b), above (including but not limited to termination (a) by the Company for Cause, (b) as a result of Executive’s death, (c) as a result of Executive’s Disability or (d) by Executive without Good Reason), then the Company’s obligation to Executive will be limited solely to the payment of accrued and unpaid base salary through the date of such cessation.  All compensation and benefits will cease at the time of such cessation and, except as otherwise provided by COBRA, the Company will have no further liability or obligation by reason of such termination.  
(d)Extension of Restricted Non-Competition Period.  At any time during the sixty (60) day period immediately following Executive’s termination of employment hereunder for any reason, the Company may elect to extend the Restricted Non-Competition Period for up to an additional twelve (12) month period (or such lesser period, as determined in accordance with the Company’s election).  In the event that the Company provides written notice to Executive that the Restricted Non-Competition Period will be extended pursuant to this Section 8(d), in addition to any amounts owed to executive under Section 8(b), Executive will be entitled to receive her Base Salary in substantially equal monthly installments for the number of months that the Company elects to extend the applicable Restricted Non-Competition Period.  Such payments will commence on the first anniversary of Executive’s termination of employment and continue monthly for the duration of any such Restricted Non-Competition Period.

(e)Severance Conditioned Upon Release.  Notwithstanding any other provision of this Agreement, no amount will be paid or benefit provided under Section 8(b) hereof unless Executive executes and delivers to the Company a release substantially identical to that attached hereto as Exhibit B (a “Release”) that becomes irrevocable within 30 days following Executive’s separation from service.  Subject to satisfaction of the foregoing Release requirement and to any delay required by the next paragraph, the payments described in Section 8(b) above will commence on the 30th day following Executive’s separation from service.  Notwithstanding any other provision of this Agreement, the Company’s refusal to provide severance benefits under Section 8(b) due to Executive’s failure or refusal to execute and deliver the Release in accordance with this paragraph, or due to Executive’s breach or purported revocation of that Release, will not relieve Executive of any obligation under Section 7 of this Agreement.  Rather, in such a case, Executive’s obligations under Section 7 will apply as though such severance benefits had been provided.
(f)Compliance with Code Section 409A.  If the termination giving rise to the payments described in Section 8(b) is not a “Separation from Service” within the meaning of Treas. Reg. § 1.409A-1(h)(1) (or any successor provision), then the amounts otherwise payable pursuant to that section will instead be deferred without interest and will not be paid until Executive experiences a Separation from Service.  In addition, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Code Section 409A to payments due to Executive upon or following Separation from Service, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following Executive’s Separation from Service (taking into account the preceding sentence of this paragraph) will be deferred without interest and paid to Executive in a lump sum immediately following that six month period.  This paragraph should not be construed to prevent the application of Treas. Reg. § 1.409A-1(b)(9)(iii)(or any successor provision) to amounts payable hereunder.  For purposes of the application of Treas. Reg. § 1.409A-1(b)(4)(or any successor provision), each payment in a series of payments will be deemed a separate payment.
(g)Compliance with Code Section 280G.  If any payment or distribution by the Company to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise pursuant to or by reason of any other agreement, policy, plan, program or arrangement or the lapse or termination of any restriction on or the vesting or exercisability of any payment or benefit (each a “Payment”), would be subject to the excise tax imposed by Section 4999 of the Code (or any successor provision thereto) or to any similar tax imposed by state or local law (such tax or taxes are hereafter collectively referred to as the “Excise Tax”), then the aggregate amount of Payments payable to Executive shall be reduced to the aggregate amount of Payments that may be made to Executive without incurring an excise tax (the “Safe-Harbor Amount”) in accordance with the immediately following sentence; provided that such reduction shall only be imposed if the aggregate after-tax value of the Payments retained by Executive (after giving effect to such reduction) is equal to or greater than the aggregate after-tax value (after giving effect to the Excise Tax) of the Payments to Executive without any such reduction.  Any such reduction shall be made in the following order: (i) first, any future cash payments (if any) shall be reduced (if necessary, to zero); (ii) second, any current cash payments shall be reduced (if necessary, to zero); (iii) third, all non-cash payments (other than equity or equity derivative related payments) shall be reduced (if necessary, to zero); and (iv) fourth, all equity or equity derivative payments shall be reduced.
9.Injunctive Relief.  Executive understands and agrees that any breach by Executive of the Restrictive Covenants will cause continuing and irreparable injury to the Company for which monetary damages would not be an adequate remedy.  Executive shall not, in any action or proceeding to enforce any of the provisions of this Agreement, assert the claim or defense that such an adequate remedy at law exists.  In the event of such breach by Executive, the Company shall have the right to enforce the Restrictive Covenants by seeking injunctive or other relief in any court and this Agreement shall not in any way limit remedies of law or in equity otherwise available to the Company.
10.Waiver of Breach.  Any waiver by the Company of a breach of any provision hereof shall not operate as or constitute a waiver of any of the terms hereof with regard to any subsequent breach.
11.Assignment.  Neither this Agreement nor any rights or obligations hereunder may be assigned except by the Company to a business entity which is a successor to the Company by merger, stock exchange, consolidation, or other reorganization, or to an entity which results from a purchase or sale or other transfer or transaction involving third parties, or except to an entity owned or controlled by the principals of the Company.  This Agreement (and all rights and benefits hereunder) is for Executive’s personal services and is, therefore, not assignable by Executive.  
12.Entire Agreement; Modification.  This Agreement is the entire agreement of the parties with regard to Executive’s employment and all other agreements and understandings, whether written or oral, if prior hereto, are merged herein so that the provisions of any prior agreement(s), including without limitation, the Original Agreement, are void and of no further force and effect.  This Agreement may not be modified except by a writing signed by both parties.

13.Applicable Law; Venue.  This Agreement shall be construed in accordance with the laws of the State of Tennessee, without regard to the principles of conflicts of law, even if Employee executed this Agreement outside Tennessee or Davidson County, Tennessee, and even if some or all of Executive’s services are to be rendered outside Tennessee.  All legal disputes between the parties shall have a venue in the courts of Davidson County, Tennessee.
14.Notices.  Any notice or communication required or permitted under this Agreement will be made in writing and (a) sent by overnight courier, (b) mailed by overnight U.S. express mail, return receipt requested or (c) sent by telecopier.  Any notice or communication to Executive will be sent to the address contained in Executive’s personnel file.  Any notice or communication to the Company will be sent to the Company’s principal executive offices, to the attention of its Vice President- Human Resources.  Notwithstanding the foregoing, either party may change the address for notices or communications hereunder by providing written notice to the other in the manner specified in this paragraph.
15.Provisions Severable.  Any provision hereof adjudged void or voidable by a court of competent jurisdiction shall be deemed severable such that the remaining provisions are in full force and effect.  To the extent that any provision hereof is adjudged to be overly broad, then such provision shall be deemed automatically replaced by a similar provision as near to the original provision as possible but still enforceable.
16.Section Headings.  The headings of sections and paragraphs of this Agreement are inserted for convenience only and will not in any way affect the meaning or construction of any provision of this Agreement.
17.Parties Bound.  This Agreement shall bind the parties’ respective heirs, legal representatives, successors and permitted assigns.
18.Other Agreements.  Executive represents and warrants to the Company that there are no restrictions, agreements or understandings whatsoever to which Executive is party (or by which Executive is otherwise bound) that would prevent or make unlawful Executive’s execution of this Agreement or employment by the Company, or that would in any way prohibit, limit or impair (or purport to prohibit, limit or impair) Executive’s provision of services to the Company.
19.Counterparts; Facsimile.  This Agreement may be executed in multiple counterparts (including by facsimile signature), each of which will be deemed to be an original, but all of which together will constitute but one and the same instrument.  Counterparts may be delivered via facsimile, electronic mail (including pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and Executive has executed this Agreement, in each case as of the date first above written.
KIRKLAND’S, INC.

By:     /s/ Carter R. Todd

Title:    V.P. and General Counsel

MICHELLE GRAUL
/s/ Michelle Graul

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]