EMPLOYMENT AGREEMENT



         THIS EMPLOYMENT AGREEMENT is entered into effective as of February 6,

2003, between Chris LaFont ("Executive") and KIRKLAND'S, INC., a Tennessee

corporation with principal offices in Jackson, Tennessee (the "Company").



                                     RECITAL



         Executive and the Company desire to memorialize Executive's employment

with the Company as Senior Vice President/General Merchandise Manager, for the

Kirkland's retail stores (the "Stores"). The parties have agreed concerning the

terms of Executive's employment.



         NOW, THEREFORE, in consideration of the premises and the parties'

mutual covenants, it is agreed:



         1.       Employment; Scope of Duties. The Company hereby employs

Executive, and Executive accepts employment as Senior Vice President of

Merchandising/General Merchandise Manager. Executive shall report to the Chief

Executive Officer of the Company, and shall perform those duties as from time to

time assigned by the Chief Executive Officer of the Company.



         2.       Term. The term of this Agreement shall commence on the

Effective Date hereinafter provided and continue until terminated as provided

herein.



         3.       Compensation. As base compensation for the services rendered

hereunder to the Company, Executive shall be paid an annual base salary of

$240,000, paid twice monthly, in arrears. In addition, for 2003, Executive shall

be eligible for an annual bonus of 50% of base salary. The bonus criteria shall

be determined by the Company and approved by the Board of Directors Compensation

Committee. The base salary amount will be reviewed annually by the Chief

Executive Officer and the Board of Directors. The Chief Executive Officer will

review the bonus, as a percentage of base salary, annually in accordance with

the Company's Management Bonus Plan. Executive's base salary shall not be

reduced below the amount set forth in this Employment Agreement, unless such

reduction is generally applicable to the senior management group of the Company.



Executive is also eligible for "family coverage", subject to applicable caps on

the Company's contribution to the premium as from time to time established by

the Company, under any group health insurance policy from time to time in force,

having such benefits as from time to time provided by the Company in its

absolute discretion, together with the maximum life insurance coverage available

for senior executives of the Company under such policy (up to such limit as from

time to time set by the Company in the Company's absolute discretion). Executive

understands and agrees that it is Executive's responsibility to promptly fill

out and submit any insurance application(s) necessary for such coverage and that

the Company has no control over the assigned effective date of the coverage or

the requirement by the insurer for medical "underwriting". The Company shall

have no liability resulting from denial of coverage by the





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insurer or for the denial of one or more claims thereunder. Executive is solely

responsible to make valid claims for benefits thereunder in order to generate

benefits due and owing.



Executive shall have such other benefits as from time to time provided by the

Company in the Company's absolute discretion, including but not limited to paid

vacation. Executive is entitled to four (4) weeks of paid vacation in 2003, and

four (4) weeks of paid vacation each year thereafter. Accrued but unused

vacation may not be carried over to a subsequent calendar year and will not be

payable upon any termination of employment.

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