Document:

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                                                                   Exhibit 10.10

                                 PROMISSORY NOTE

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BORROWER:  Citi Trends, Inc.                LENDER:   Bank of America, N.A.
           102 Fahm Street                            CCS-Commercial Banking
           Savannah, GA 31401                         FL9-100-03-15
                                                      600 Peachtree St. NE
                                                      Atlanta, GA 30308
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PRINCIPAL AMOUNT: $3,000,000.00                       DATE OF NOTE: JUNE 21,2004

PROMISE TO PAY. Citi Trends, Inc. ("Borrower") promises to pay to Bank of
America, N.A. ("Lender"), or order, in lawful money of the United States of
America, the principal amount of Three Million & 00/100 Dollars ($3,000,000.00)
or so much as may be outstanding, together with interest on the unpaid
outstanding principal balance of each advance. Interest shall be calculated from
the date of each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan in one payment of all outstanding principal
plus all accrued unpaid interest on June 30, 2005. In addition, Borrower will
pay regular monthly payments of all accrued unpaid interest due as of each
payment date, beginning July 26,2004, with all subsequent interest payments to
be due on the same day of each month after that. Unless otherwise agreed or
required by applicable law, payments will be applied first to any accrued unpaid
interest; then to principal; then to any late charges; and then to any unpaid
collection costs. The annual interest rate for this Note is computed on a
365/360 basis; that is, by applying the ratio of the annual interest rate over a
year of 360 days, multiplied by the outstanding principal balance, multiplied by
the actual number of days the principal balance is outstanding. Borrower will
pay Lender at Lender's address shown above or at such other place as Lender may
designate in writing.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from
time to time based on changes in an independent index which is the "LIBOR Daily
Floating Rate" which is the fluctuating rate of interest (rounded upwards, if
necessary to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any
successor page) as the 1 month London interbank offered rate for deposits in
United States Dollars at approximately 11:00 a.m. (London time) on the second
preceding business day, as adjusted from time to time in Lender's sole
discretion for then-applicable reserve requirements, deposit insurance
assessment rates and other regulatory costs; if for any reason such rate is not
available, the term "LIBOR Daily Floating Rate" shall mean the fluctuating rate
of interest equal to the rate of interest (rounded upwards, if necessary to the
nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the 1 month London
interbank offered rate for deposits in United States Dollars at approximately
11:00 a.m. (London time) on the second preceding day, as adjusted from time to
time in Lender's sole discretion for then-applicable reserve requirements,
deposit insurance assessment rates and other regulatory costs; provided,
however, if more than one rate is specified on Reuters Screen LIBO page, the
applicable rate shall be the arithmetic mean of all such rates (the "Index").
The Index is not necessarily the lowest rate charged by Lender on its loans. If
the Index becomes unavailable during the term of this loan, Lender may designate
a substitute index after notice to Borrower. Lender will tell Borrower the
current Index rate upon Borrower's request. The interest rate change will not
occur more often than each date of such change in the Index. Borrower
understands that Lender may make loans based on other rates as well. The
interest rate to be applied to the unpaid principal balance of this Note will be
at a rate of 2.000 percentage points over the Index. NOTICE: Under no
circumstances will the interest rate on this Note be more than the maximum rate
allowed by applicable law.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed
earlier than it is due. Early payments will not, unless agreed to by Lender in
writing, relieve Borrower of Borrower's obligation to continue to make payments
of accrued unpaid interest. Rather, early payments will reduce the principal
balance due. Borrower agrees not to send Lender payments marked "paid in full",
"without recourse", or similar language. If Borrower sends such a payment,
Lender may accept it without losing any of Lender's rights under this Note, and
Borrower will remain obligated to pay any further amount owed to Lender. All
written communications concerning disputed amounts, including any check or other
payment instrument that indicates that the payment constitutes "payment in full"
of the amount owed or that is tendered with other conditions or limitations or
as full satisfaction of a disputed amount must be mailed or delivered to: Bank
of America, N.A.; CCS-Commercial Banking; FL9-100-03-15; 600 Peachtree St. NE;
Atlanta, GA 30308.
<PAGE>
LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged
4.000% of the unpaid portion of the regularly scheduled payment, regardless of
any partial payments Lender has received.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final
maturity, Lender, at its option, may, if permitted under applicable law,
increase the variable interest rate on this Note to 8.000 percentage points over
the Index. The interest rate will not exceed the maximum rate permitted by
applicable law.

DEFAULT. Each of the following shall constitute an event of default ("Event of
Default") under this Note:

      PAYMENT DEFAULT. Borrower fails to make any payment when due under this
      Note.

      OTHER DEFAULTS. Borrower fails to comply with or to perform any other
      term, obligation, covenant or condition contained in this Note or in any
      of the related documents or to comply with or to perform any term,
      obligation, covenant or condition contained in any other agreement between
      Lender and Borrower.

      DEFAULT IN FAVOR OF THIRD PARTIES. Borrower or any Grantor defaults under
      any loan, extension of credit, security agreement, purchase or sales
      agreement, or any other agreement, in favor of any other creditor or
      person that may materially affect any of Borrower's property or Borrower's
      ability to repay this Note or perform Borrower's obligations under this
      Note or any of the related documents.

      FALSE STATEMENTS. Any warranty, representation or statement made or
      furnished to Lender by Borrower or on Borrower's behalf under this Note or
      the related documents is false or misleading in any material respect,
      either now or at the time made or furnished or becomes false or misleading
      at any time thereafter.

      INSOLVENCY. The dissolution or termination of Borrower's existence as a
      going business, the insolvency of Borrower, the appointment of a receiver
      for any part of Borrower's property, any assignment for the benefit of
      creditors, any type of creditor workout, or the commencement of any
      proceeding under any bankruptcy or insolvency laws by or against Borrower.

      CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or
      forfeiture proceedings, whether by judicial proceeding, self-help,
      repossession or any other method, by any creditor of Borrower or by any
      governmental agency against any collateral securing the loan. This
      includes a garnishment of any of Borrower's accounts, including deposit
      accounts, with Lender. However, this Event of Default shall not apply if
      there is a good faith dispute by Borrower as to the validity or
      reasonableness of the claim which is the basis of the creditor or
      forfeiture proceeding and if Borrower gives Lender written notice of the
      creditor or forfeiture proceeding and deposits with Lender monies or a
      surety bond for the creditor or forfeiture proceeding, in an amount
      determined by Lender, in its sole discretion, as being an adequate reserve
      or bond for the dispute.

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                                 PROMISSORY NOTE
                                   (Continued)                            Page 2
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      EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with
      respect to any guarantor, endorser, surety, or accommodation party of any
      of the indebtedness or any guarantor, endorser, surety, or accommodation
      party dies or becomes incompetent, or revokes or disputes the validity of,
      or liability under, any guaranty of the indebtedness evidenced by this
      Note.

      CHANGE IN OWNERSHIP. Any change in ownership of twenty-five percent (25%)
      or more of the common stock of Borrower.

      ADVERSE CHANGE. A material adverse change occurs in Borrower's financial
      condition, or Lender believes the prospect of payment or performance of
      this Note is impaired.

      INSECURITY. Lender in good faith believes itself insecure.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, and then
Borrower will pay that amount.

ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect
this Note if Borrower does not pay. Borrower will pay Lender that amount. This
includes, subject to any limits under applicable law, Lender's costs of
collection, including court costs and fifteen percent (15%) of the principal
plus accrued interest as attorneys' fees, if any sums owing under this Note are
collected by or through an attorney at law, whether or not there is a lawsuit,
and legal expenses for bankruptcy proceedings (including efforts to modify or
vacate any automatic stay or injunction), and appeals. If not prohibited by
applicable law, Borrower also will pay any court costs, in addition to all other
sums provided by law.

GOVERNING LAW. This Note will be governed by, construed and enforced in
accordance with federal law and the laws of the State of Georgia. This Note has
been accepted by Lender in the State of Georgia.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to
submit to the jurisdiction of the courts of any County, State of Georgia.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Borrower's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds
jointly with someone else and all accounts Borrower may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
debt against any and all such accounts.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under
this Note, as well as directions for payment from Borrower's accounts, may be
requested orally or in writing by Borrower or by an authorized person. Lender
may, but need not, require that all oral requests be confirmed in writing.
Borrower agrees to be liable for all sums either: (A) advanced in accordance
with the instructions of an authorized person or (B) credited to any of
Borrower's accounts with Lender. The unpaid principal balance owing on this Note
at any time may be evidenced by endorsements on this Note or by Lender's
internal records, including daily computer print-outs. Lender will have no
obligation to advance funds under this Note if: (A) Borrower or any guarantor is
in default under the terms of this Note or any agreement that Borrower or any
guarantor has with Lender, including any agreement made in connection with the
signing of this Note; (B) Borrower or any guarantor ceases doing business or is
insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit,
modify or revoke such guarantor's guarantee of this Note in any other loan with
Lender; (D) Borrower has applied funds provided pursuant to this Note for
purposes other than those authorized by Lender; or (E) Lender in good faith
believes itself insecure.
<PAGE>
ARBITRATION. (a) This paragraph concerns the resolution of any controversies or
claims between the parties, whether arising in contract, tort or by statute,
including but not limited to controversies or claims that arise out of or relate
to: (i) this agreement (including any renewals. extensions or modifications); or
(ii) any document related to this agreement (collectively a "Claim"). For the
purposes of this arbitration provision only, the term "parties" shall include
any parent corporation, subsidiary or affiliate of the Bank involved in the
servicing, management or administration of any obligation described or evidenced
by this agreement.

(b) At the request of any party to this agreement, any Claim shall be resolved
by binding arbitration in accordance with the Federal Arbitration Act (Title 9,
U. S. Code) (the "Act"). The Act will apply even though this agreement provides
that it is governed by the law of a specified state.

(c) Arbitration proceedings will be determined in accordance with the Act, the
applicable rules and procedures for the arbitration of disputes of JAMS or any
successor thereof ("JAMS"), and the terms of this paragraph. In the event of any
inconsistency, the terms of this paragraph shall control.

(d) The arbitration shall be administered by JAMS and conducted, unless
otherwise required by law, in any U. S. state where real or tangible personal
property collateral for this credit is located or if there is no such
collateral, in the state specified in the governing law section of this
agreement. All Claims shall be determined by one arbitrator; however, if Claims
exceed $5,000,000, upon the request of any party, the Claims shall be decided by
three arbitrators. All arbitration hearings shall commence within 90 days of the
demand for arbitration and close within 90 days of commencement and the award of
the arbitrator(s) shall be issued within 30 days of the close of the hearing.
However, the arbitrator(s), upon a showing of good cause, may extend the
commencement of the hearing for up to an additional 60 days. The arbitrator(s)
shall provide a concise written statement of reasons for the award. The
arbitration award may be submitted to any court having jurisdiction to be
confirmed and enforced.

(e) The arbitrator(s) will have the authority to decide whether any Claim is
barred by the statute of limitations and, if so, to dismiss the arbitration on
that basis. For purposes of the application of the statute of limitations, the
service on JAMS under applicable JAMS rules of a notice of Claim is the
equivalent of the filing of a lawsuit. Any dispute concerning this arbitration
provision or whether a Claim is arbitratable shall be determined by the
arbitrator(s). The arbitrator(s) shall have the power to award legal fees
pursuant to the terms of this agreement.

(f) This paragraph does not limit the right of any party to: (i) exercise
self-help remedies, such as but not limited to, setoff; (ii) initiate judicial
or nonjudicial foreclosure against any real or personal property collateral;
(iii) exercise any judicial or power of sale rights, or (iv) act in a court of
law to obtain an interim remedy, such as but not limited to, injunctive relief,
writ of possession or appointment of a receiver, or additional or supplementary
remedies.

(g) The filing of a court action is not intended to constitute a waiver of the
right of any party, including the suing party, thereafter to require submittal
of the Claim to arbitration.

ADDITIONAL DEFAULTS.

Each of the following shall constitute an additional event of default ("Event of
Default") under this Note:

EVENT OF DEFAULT UNDER RELATED DOCUMENTS. A default or additional event of
default occurs under the terms of any promissory note, guaranty, pledge
agreement, security agreement or other agreement or instrument executed by
Borrower or any guarantor, pledgor, accommodation party or other obligor in
connection with or relating to this Note.

JUDGMENT. The entry of a judgment against any Borrower or guarantor, pledgor,
accommodation party or other obligor which Lender deems to be of a material
nature, in Lender's sole discretion.

RESIGNATION/WITHDRAWAL. The resignation or withdrawal of any partner or a
material owner of Borrower or any guarantor, pledgor, accommodation
<PAGE>
                                 PROMISSORY NOTE
                                   (Continued)                            Page 3
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party or other obligor [or any substantial change in the present executive or
management personnel of Borrower, any guarantor, pledgor, accommodation party or
other obligor], as determined by Lender in its sole discretion.

CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, self-help, repossession or any
other method, by any creditor of Borrower or by any governmental agency against
any assets of Borrower and/or any guarantor, pledgor, accommodation party or
other obligor. This includes a garnishment of: (1) any of Borrower's accounts,
including deposit accounts, with Lender and/or (2) any account, including
deposit accounts, with Lender of any guarantor, pledgor, accommodation party or
other obligor. However, this Event of Default shall not apply if there is a good
faith dispute by such Borrower and/or guarantor, pledgor, accommodation party or
other obligor as to the validity or reasonableness of the claim which is the
basis of the creditor or forfeiture proceeding and if such Borrower and/or
guarantor, pledgor, accommodation party or other obligor gives Lender written
notice of the creditor of forfeiture proceeding and deposits with Lender monies
or a surety bond for the creditor or forfeiture proceeding, in an amount
determined by Lender, in its sole discretion, as being an adequate reserve or
bond for the dispute.

ASSIGNMENT. Lender may sell or offer to sell this Note, together with any and
all documents guaranteeing, securing or executed in connection with this Note,
to one or more assignees without notice to or consent of Borrower. Lender is
hereby authorized to share any information it has pertaining to the loan
evidenced by this Note, including without limitation credit information on the
undersigned, any of its principals, or any guarantors of this Note, to any such
assignee or prospective assignee.

COUNTERPARTS. This Note may be executed in any number of counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

PRE BILLING. If the Borrower and Lender elect to use pre-billing calculation,
for each payment date (the "Due Date") the amount of each payment debit will be
determined as follows: On the "Billing Date" Lender will prepare and mail to
Borrower an invoice of the amounts that will be due on that Due Date ("Billed
Amount"). (The "Billing Date" will be a date that is a specified number of
calendar days prior to the Due Date, which number of days will be mutually
agreed from time to time by Lender and Borrower.) The calculation of the Billed
Amount will be made on the assumption that no new extensions of credit or
payments will be made between the Billing Date and the Due Date, and that there
will be no changes in the applicable interest rate. On the Due Date Lender will
debit the Designated Account for the Billed Amount, regardless of the actual
amount due on that date ("Accrued Amount"). If the Due Date does not fall on a
Business Day, Lender shall debit the Designated Account on the first Business
Day following the Due Date. For purposes of this Agreement, "Business Day" means
a day other than Saturday, Sunday or other day on which commercial banks are
authorized to close or are in fact closed in the state where the Lender's
lending office is located. If the Billed Amount debited to the Designated Amount
differs from the Accrued Amount, the difference will be treated as follows: If
the Billed Amount is less than the Accrued Amount, the Billed Amount for the
following Due Date will be increased by the amount of the underpayment. Borrower
will not be in default by reason of any such underpayment. If the Billed Amount
is more than the Accrued Amount, the Billed Amount for the following Due Date
will be decreased by the amount of the overpayment. Regardless of any such
difference, interest will continue to accrue based on the actual amount of
principal outstanding without compounding. Lender will not pay interest on any
overpayment.
<PAGE>
AUTOMATIC PAYMENTS. Borrower hereby authorizes Lender automatically to deduct
from Borrower's account numbered 003257772600 the amount of any loan payment. If
the funds in the account are insufficient to cover any payment, Lender shall not
be obligated to advance funds to cover the payment. At any time and for any
reason, Borrower or Lender may voluntarily terminate Automatic Payments.

TERMINATION OF AUTOMATIC PAYMENTS. In the event that Borrower terminates the
Automatic Payment arrangement with Lender, Borrower agrees that the interest
rate under the Note will increase, at the discretion of the Lender, by one-half
percentage point (0.50%) per annum over the rate of interest stated in the Note,
and the amount of each interest installment will be increased accordingly. The
effective rate of interest under the Note shall not in any event exceed the
maximum rate permitted by law.

ADVANCES UNDER THE LINE OF CREDIT. Except as otherwise provided in this Note,
advances under the line of credit provided under this Note will be available
until the earlier of any event of default under this Note, or June 30, 2005 (the
"Expiration Date"). Borrower may borrow, repay and re-borrow under this Note at
any time until the Expiration Date. The total principal amount outstanding under
this Note at any one time must not exceed the principal amount of this Note,
provided that the amount advanced hereunder does not exceed any borrowing base
or other limitation on borrowings by Borrower.

FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT:
(A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES WITH
RESPECT TO THE SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY
COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS
RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET
OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE
CONTRARY, (C) THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS
DOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

UNUSED COMMITMENT FEE. Borrower agrees to pay a fee on any difference between
the maximum principal amount available under this Note and the amount of credit
it actually uses, determined by the weighted average credit outstanding during
the specified period. The fee will be calculated at .125% per year. This fee is
due on September 26, 2004, and on the 26th day of each following quarter until
the expiration of the availability of advances under this Note.

ADDRESS FOR NOTICES. Any notice required to be given under this Note shall be
given in writing, and shall be effective when actually delivered, when actually
received by telefacsimile (unless otherwise required by law), when deposited
with a nationally recognized overnight courier, or, if mailed, when deposited in
the United States mail, as first class, certified or registered mail postage
prepaid, directed if to Borrower at the address shown near the beginning of this
Note and if to Lender at the address set forth below. Any party may change its
address for notices under this Note by giving formal written notice to the other
parties, specifying that the purpose of the notice is to change the party's
address. For notice purposes, Borrower agrees to keep Lender informed at all
times of Borrower's current address. Unless otherwise provided or required by
law, if there is more than one Borrower, any notice given by Lender to any
Borrower is deemed to be notice given to all Borrowers. Notwithstanding anything
to the contrary herein, all notices and communications to the Lender shall be
directed to the following address:

        Bank of America, N.A
        Jacksonville CCS - Attn: Notice Address
        9000 Southside Blvd., Bldg. 100, 3rd Floor
        Jacksonville, FL 32256.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and
upon Borrower's heirs, personal representatives, successors and assigns, and
shall inure to the benefit of Lender and its successors and assigns.

GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment, and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise expressly stated in writing, no party
who signs this Note whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties waive any right to
require Lender to take action against
<PAGE>
                                 PROMISSORY NOTE
                                   (Continued)                           Page 4.
================================================================================

any other party who signs this Note as provided in O.C.G.A. Section 10-7-24 and
agree that Lender may renew or extend (repeatedly and for any length of time)
this loan or release any party or guarantor or collateral; or impair, fail to
realize upon or perfect Lender's security interest in the collateral; and take
any other action deemed necessary by Lender without the consent of or notice to
anyone. All such parties also agree that Lender may modify this loan without the
consent of or notice to anyone other than the party with whom the modification
is made. The obligations under this Note are joint and several.

THE NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THE NOTE IS AND SHALL
CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.

BORROWER:

CITI TRENDS, INC.

 By:  /s/  Tom Stoltz                            (Seal)
     --------------------------------------------
     Tom Stoltz,
     Chief Financial Officer of Citi Trends, Inc.<PAGE>
                                                                   Exhibit 10.11

                                   CITI TRENDS

                          2005 LONG-TERM INCENTIVE PLAN

--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

1.      Establishment, Purpose and Effective Date.

        (a)    Establishment

        (b)    Purpose

        (c)    Effective Date

2.      Definitions.

3.      Scope of the Plan.

        (a)    Number of Shares Available Under the Plan

        (b)    Reduction in the Available Shares in Connection with Award Grants

        (c)    Effect of the Expiration, Termination, Cancellation or
               Settlement of Awards

4.      Administration.

        (a)    Committee Administration

        (b)    Board Reservation and Delegation

        (c)    Committee Authority

        (d)    Committee Determinations Final

5.      Eligibility.

6.      Conditions to Grants.

        (a)    General Conditions.

        (b)    Grant of Options and Exercise Price

        (c)    Grant of Incentive Stock Options

        (d)    Grant of Shares of Restricted Stock

        (e)    Grant of Performance Units and Performance Shares

        (f)    Grant of Stock Appreciation Rights

<PAGE>

        (g)    Tandem Awards

7.      Non-transferability.

8.      Exercise.

        (a)    Exercise of Options and Stock Appreciation Rights

        (b)    Exercise of Performance Units

        (c)    Payment of Performance Shares

        (d)    Exercise, Cancellation, Expiration or Forfeiture of Tandem Awards

9.      Effect of Certain Transactions.

10.     Mandatory Withholding Taxes.

11.     Termination of Employment.

12.     Securities Law Matters.

13.     No Funding Required.

14.     No Employment Rights.

15.     Rights as a Stockholder.

16.     Nature of Payments.

17.     Non-Uniform Determinations.

18.     Adjustments.

19.     Amendment of the Plan.

20.     Termination of the Plan.

21.     No Illegal Transactions.

22.     Governing Law.

23.     Severability.

24.     Translations.

<PAGE>

        1. Establishment, Purpose and Effective Date.

                (a) Establishment. The Company hereby establishes the Citi
        Trends 2005 Long-Term Incentive Plan (as set forth herein and from time
        to time amended, the "Plan").

                (b) Purpose. The primary purpose of the Plan is to provide a
        means by which key employees and directors of the Company can acquire
        and maintain stock ownership, thereby strengthening their commitment to
        the success of the Company and their desire to remain employed by the
        Company, focusing their attention on managing the Company as an equity
        owner, and aligning their interests with those of the Company's
        stockholders. The Plan also is intended to attract and retain key
        employees and to provide such employees with additional incentive and
        reward opportunities designed to encourage them to enhance the
        profitable growth of the Company.

                (c) Effective Date. The Plan shall become effective upon its
        adoption by the Board.

        2. Definitions. As used in the Plan, terms defined parenthetically
immediately after their use shall have the respective meanings provided by such
definitions and the terms set forth below shall have the following meanings
(such meanings to be equally applicable to both the singular and plural forms of
the terms defined):

                (a) "Award" means Options, shares of restricted Stock,
        performance units, performance shares, Stock Appreciation Rights or
        Director's Shares granted under the Plan.

                (b) "Award Agreement" means the written agreement by which an
        Award is evidenced.

                (c) "Beneficial Owner," "Beneficially Owned" and "Beneficially
        Owning" shall have the meanings applicable under Rule 13d-3 promulgated
        under the 1934 Act.

                (d) "Board" means the board of directors of the Company.

                (e) "Change in Capitalization" means any increase or reduction
        in the number of shares of Stock, or any change in the shares of Stock
        or exchange of shares of Stock for a different number or kind of shares
        or other securities by reason of a stock dividend, extraordinary
        dividend, stock split, reverse stock split, share combination,
        reclassification, recapitalization, merger, consolidation, spin-off,
        split-up, reorganization, issuance of warrants or rights, liquidation,
        exchange of shares, repurchase of shares, change in corporate structure,
        or similar event, of or by the Company.

                (f) "Change of Control" means any of the following:

                        (i) the acquisition by any Person of Beneficial
                Ownership of Voting Securities which, when added to the Voting
                Securities then Beneficially Owned by such Person, would result
                in such Person Beneficially Owning 33% or more of the combined
                Voting Power of the Company's then outstanding Voting
                Securities; provided, however, that for purposes of this
                paragraph (i), a Person shall not be deemed to have made an
                acquisition of Voting Securities if such Person: (1) acquires
                Voting Securities as a result of a stock split, stock dividend
                or other corporate restructuring in which all stockholders of
                the class of such Voting Securities are treated on a pro rata
                basis; (2) acquires the Voting Securities directly from the
                Company; (3) becomes the Beneficial Owner of 33% or more of the
                combined Voting Power of the Company's then outstanding Voting
                Securities solely as a result of the acquisition of Voting
                Securities by the Company or any Subsidiary which, by reducing
                the number of Voting Securities outstanding, increases the
                proportional number of shares Beneficially Owned by such Person,
                provided that if (x) a Person would own at least such percentage
                as a result of the acquisition by the Company or any Subsidiary
                and (y) after such acquisition by the Company or any Subsidiary,
                such Person acquires Voting Securities, then an acquisition of
                Voting Securities shall have occurred; (4) is the Company or any
                corporation or other Person of which a majority of its voting
                power or its equity securities or equity interest is owned
                directly or indirectly

<PAGE>

                by the Company (a "Controlled Entity"); or (5) acquires Voting
                Securities in connection with a "Non-Control Transaction" (as
                defined in paragraph (iii) below); or

                        (ii) the individuals who, as of the Effective Date, are
                members of the Board (the "Incumbent Board") cease for any
                reason to constitute at least two-thirds of the Board; provided,
                however, that if either the election of any new director or the
                nomination for election of any new director by the Company's
                stockholders was approved by a vote of at least two-thirds of
                the Incumbent Board prior to such election or nomination, such
                new director shall be considered as a member of the Incumbent
                Board; provided further, however, that no individual shall be
                considered a member of the Incumbent Board if such individual
                initially assumed office as a result of either an actual or
                threatened "Election Contest" (as described in Rule 14a-11
                promulgated under the 1934 Act) or other actual or threatened
                solicitation of proxies or consents by or on behalf of a Person
                other than the Board (a "Proxy Contest") including by reason of
                any agreement intended to avoid or settle any Election Contest
                or Proxy Contest; or

                        (iii) consummation of:

                                (A) a merger, consolidation or reorganization
                        involving the Company (a "Business Combination"), unless

                                        (1) the stockholders of the Company,
                                immediately before the Business Combination,
                                own, directly or indirectly immediately
                                following the Business Combination, at least a
                                majority of the combined voting power of the
                                outstanding voting securities of the corporation
                                resulting from the Business Combination (the
                                "Surviving Corporation") in substantially the
                                same proportion as their ownership of the Voting
                                Securities immediately before the Business
                                Combination, and

                                        (2) the individuals who were members of
                                the Incumbent Board immediately prior to the
                                execution of the agreement providing for the
                                Business Combination constitute at least a
                                majority of the members of the Board of
                                Directors of the Surviving Corporation, and

                                        (3) no Person (other than the Company or
                                any Controlled Entity, a trustee or other
                                fiduciary holding securities under one or more
                                employee benefit plans or arrangements (or any
                                trust forming a part thereof) maintained by the
                                Company, the Surviving Corporation or any
                                Controlled Entity, or any Person who,
                                immediately prior to the Business Combination,
                                had Beneficial Ownership of 33% or more of the
                                then outstanding Voting Securities) has
                                Beneficial Ownership of 33% or more of the
                                combined voting power of the Surviving
                                Corporation's then outstanding voting securities
                                (a Business Combination satisfying the
                                conditions of clauses (1), (2) and (3) of this
                                subparagraph (A) shall be referred to as a
                                "Non-Control Transaction");

                                (B) a complete liquidation or dissolution of the
                        Company; or

                                (C) the sale or other disposition of all or
                        substantially all of the assets of the Company (other
                        than a transfer to a Controlled Entity).

        Notwithstanding the foregoing, a Change of Control shall not be deemed
to occur solely because 33% or more of the then outstanding Voting Securities is
Beneficially Owned by (x) a trustee or other fiduciary

<PAGE>

holding securities under one or more employee benefit plans or arrangements (or
any trust forming a part thereof) maintained by the Company or any Controlled
Entity or (y) any corporation which, immediately prior to its acquisition of
such interest, is owned directly or indirectly by the stockholders of the
Company in the same proportion as their ownership of stock in the Company
immediately prior to such acquisition.

                (g) "Committee" means the committee of the Board appointed
                pursuant to Article 4.
                (h) "Company" means Citi Trends, a Georgia corporation.
                (i) "Disability" means a mental or physical condition which, in
                the opinion of the Committee, renders a Grantee unable or
                incompetent to carry out the job responsibilities which such
                Grantee held or the duties to which such Grantee was assigned at
                the time the disability was incurred, and which is expected to
                be permanent or for an indefinite duration.
                (j) "Effective Date" means the date that the Plan is adopted by
                the Board.
                (k) "Fair Market Value" of any security of the Company or any
                other issuer means, as of any applicable date:

                        (i) if the security is listed for trading on the New
                York Stock Exchange, the closing price at the close of the
                primary trading session of the security on such date on the New
                York Stock Exchange, or if there has been no such closing price
                of the security on such date, on the next preceding date on
                which there was such a closing price, or

                        (ii) if the security is not so listed, but is listed on
                another national securities exchange, the closing price at the
                close of the primary trading session of the security on such
                date on such exchange, or if there has been no such closing
                price of the security on such date, on the next preceding date
                on which there was such a closing price, or

                        (iii) if the security is not listed for trading on the
                New York Stock Exchange or on another national securities
                exchange, the last sale price at the end of normal market hours
                of the security on such date as quoted on the National
                Association of Securities Dealers Automated Quotation System
                ("NASDAQ") or, if no such price shall have been so quoted for
                such date, on the next preceding date for which such price was
                so quoted, or

                        (iv) if the security is not listed for trading on a
                national securities exchange or is not authorized for quotation
                on NASDAQ, the fair market value of the security as determined
                in good faith by the Committee, and in the case of Incentive
                Stock Options, in accordance with Section 422 of the Internal
                Revenue Code.

                (l) "Grant Date" means the date of grant of an Award determined
                in accordance with Article 6.
                (m) "Grantee" means an individual who has been granted an Award.
                (n) "Incentive Stock Option" means an Option satisfying the
                requirements of Section 422 of the Internal Revenue Code and
                designated by the Committee as an Incentive Stock Option.
                (o) "Internal Revenue Code" means the Internal Revenue Code of
                1986, as amended, and regulations and rulings thereunder.
                References to a particular Section of the Internal Revenue Code
                shall include references to successor provisions.
                (p) "Measuring Period" has the meaning specified in Article
                6(e)(ii)(A).
                (q) "Minimum Consideration" means the $.01 par value per share
                of Stock or such larger amount determined pursuant to resolution
                of the Board to be capital within the meaning of Section 154 of
                the Delaware General Corporation Law.
                (r) "1934 Act" means the Securities Exchange Act of 1934, as
                amended.
                (s) "Nonqualified Stock Option" means an Option which is not an
                Incentive Stock Option or other type of statutory stock option
                under the Internal Revenue Code.
                (t) "Option" means an option to purchase Stock granted or issued
                under the Plan.

<PAGE>

                (u) "Exercise Price" means the per share purchase price of (i)
                Stock subject to an Option, (ii) Stock subject to a Stock
                Appreciation Right, or (iii) restricted Stock subject to an
                Option.
                (v) "Performance-Based Compensation" means any Option or Award
                that is intended to constitute "performance based compensation"
                within the meaning of Section 162(m)(4)(C) of the Internal
                Revenue Code and the regulations promulgated thereunder.
                (w) "Performance Percentage" has the meaning specified in
                Article 6(e)(ii)(C).
                (x) "Person" means a person within the meaning of Sections 13(d)
                and 14(d) of the 1934 Act.
                (y) "Plan" has the meaning set forth in Article 1(a).
                (z) "SEC" means the Securities and Exchange Commission.
                (aa) "Section 16 Grantee" means a person subject to potential
                liability with respect to equity securities of the Company under
                Section 16(b) of the 1934 Act.
                (bb) "Stock" means common stock, par value $.01 per share, of
                the Company.
                (cc) "Stock Appreciation Right" means a right that permits the
                individual to receive a payment equal to the excess of the
                stock's value at exercise over the Exercise Price.
                (dd) "Subsidiary" means (i) except as provided in subsection
                (ii) below, any corporation which is a subsidiary corporation
                within the meaning of Section 424(f) of the Internal Revenue
                Code with respect to the Company, and (ii) in relation to the
                eligibility to receive Options or Awards other than Incentive
                Stock Options, any entity, whether or not incorporated, in which
                the Company directly or indirectly owns either (A) Voting
                Securities possessing at least 50% of the Voting Power of such
                entity, or (B) if such entity does not issue Voting Securities,
                at least 50% of the ownership interests in such entity.
                (ee) "10% Owner" means a person who owns stock (including stock
                treated as owned under Section 424(d) of the Internal Revenue
                Code) possessing more than 10% of the Voting Power of the
                Company.
                (ff) "Termination of Employment" occurs the first day on which
                an individual is for any reason no longer employed by, or
                providing services to, the Company or any of its Subsidiaries,
                or with respect to an individual who is an employee of a
                Subsidiary, the first day on which the Company no longer owns
                Voting Securities possessing at least 50% of the Voting Power of
                such Subsidiary.
                (gg) "Voting Power" means the combined voting power of the then
                outstanding Voting Securities.
                (hh) "Voting Securities" means, with respect to the Company or
                any Subsidiary, any securities issued by the Company or such
                Subsidiary, respectively, which generally entitle the holder
                thereof to vote for the election of directors of the Company.

        3. Scope of the Plan.

                (a) Number of Shares Available Under the Plan. The maximum
        number of shares of Stock that may be made the subject of Awards granted
        under the Plan is 35,000 (or the number and kind of shares of Stock or
        other securities to which such shares of Stock are adjusted upon a
        Change in Capitalization pursuant to Article 18); provided, however,
        that in the aggregate, not more than 50% of total shares of Stock may be
        made the subject of Awards other than Options. The maximum number of
        shares of Stock that may be the subject of Options and Awards granted to
        any individual pursuant to the Plan in any calendar year period may not
        exceed 5% of total number of reserved shares. The maximum dollar amount
        of cash or the Fair Market Value of Stock that any individual may
        receive in any calendar year in respect of performance units denominated
        in dollars may not exceed $2,500,000. The Company shall reserve for the
        purpose of the Plan, out of its authorized but unissued shares of Stock
        or out of shares held in the Company's treasury, or partly out of each,
        such number of shares as shall be determined by the Board. The Board
        shall have the authority to cause the Company to purchase from time to
        time shares of Stock to be held as treasury shares and used for or in
        connection with Awards.

<PAGE>

                (b) Reduction in the Available Shares in Connection with Award
        Grants. Upon the grant of an Award, the number of shares of Stock
        available under Article 3(a) for the granting of further Awards shall be
        reduced as follows:

                        (i) Generally. In connection with the granting of each
                Award, other than a performance unit denominated in dollars, the
                number of shares of Stock available under Article 3(a) for the
                granting of further Awards shall be reduced by a number of
                shares equal to the number of shares of Stock in respect of
                which the Award is granted or denominated; provided, however,
                that if any Award is exercised by tendering shares of Stock,
                either actually or by attestation, to the Company as full or
                partial payment of the exercise price, the maximum number of
                shares of Stock available under Article 3(a) shall be increased
                by the number of shares of Stock so tendered.

                        (ii) Performance Units Denominated in Dollars. In
                connection with the granting of a performance unit denominated
                in dollars, there shall be no reduction in the number of shares
                of Stock available under Article 3(a) for the granting of
                further Awards. If a performance unit denominated in dollars is
                settled in Stock, the number of shares of Stock available under
                Article 3(a) for the granting of further Awards shall be reduced
                at the time of settlement by the number of shares of Stock
                issued in connection with the settlement of the performance
                unit.

                        (iii) Cash Settlement; Shares Subject to Multiple
                Awards. Notwithstanding anything contained herein to the
                contrary, (A) if an Award is granted that cannot be settled in
                shares of Stock, there shall be no reduction in the number of
                shares of Stock available under Article 3(a) for the granting of
                further Awards, and (B) where two or more Awards are granted
                with respect to the same shares of Stock, such shares shall be
                taken into account only once for purposes of this Article 3(b).

                (c) Effect of the Expiration, Termination, Cancellation or
        Settlement of Awards. If and to the extent an Option or Award expires,
        terminates or is canceled, settled in cash (including the settlement of
        tax withholding obligations using shares of Stock) or forfeited for any
        reason without having been exercised in full (including, without
        limitation, a cancellation of an Option pursuant to Article 4(c)(vi)),
        the shares of Stock associated with the expired, terminated, canceled,
        settled or forfeited portion of the Award (to the extent the number of
        shares available for the granting of Awards was reduced pursuant to
        Article 3(b)) shall again become available for Awards under the Plan.

        4. Administration.

                (a) Committee Administration. The Plan shall be administered by
        the Committee, which shall consist of not less than two "non-employee
        directors" within the meaning of Rule 16b-3, and to the extent necessary
        for any Award intended to qualify as Performance-Based Compensation to
        so qualify, each member of the Committee shall be an "outside director"
        within the meaning of Section 162(m) of the Internal Revenue Code. For
        purposes of the preceding sentence, if one or more members of the
        Committee is not a "non-employee director" within the meaning of Rule
        16b-3 and an "outside director" within the meaning of Section 162(m) of
        the Internal Revenue Code but recuses himself or herself or abstains
        from voting with respect to a particular action taken by the Committee,
        then the Committee, with respect to that action, shall be deemed to
        consist only of the members of the Committee who have not recused
        themselves or abstained from voting.

                (b) Board Reservation and Delegation. Except to the extent
        necessary for any Award intended to qualify as Performance-Based
        Compensation to so qualify, the Board may, in its discretion, reserve to
        itself or exercise any or all of the authority and responsibility of the

<PAGE>

        Committee hereunder and may also delegate to another committee of the
        Board any or all of the authority and responsibility of the Committee
        with respect to Awards to Grantees who are not Section 16 Grantees at
        the time any such delegated authority or responsibility is exercised.
        Such other committee may consist of one or more directors who may, but
        need not be, officers or employees of the Company or of any of its
        Subsidiaries. To the extent that the Board has reserved to itself, or
        exercised the authority and responsibility of the Committee, or
        delegated the authority and responsibility of the Committee to such
        other committee, all references to the Committee in the Plan shall be to
        the Board or to such other committee.

                (c) Committee Authority. The Committee shall have full and final
        authority, in its discretion, but subject to the express provisions of
        the Plan, as follows:

                        (i) to grant Awards,

                        (ii) to determine (A) when Awards may be granted, and
                (B) whether or not specific Awards shall be identified with
                other specific Awards, and if so, whether they shall be
                exercisable cumulatively with, or alternatively to, such other
                specific Awards,

                        (iii) to interpret the Plan and to make all
                determinations necessary or advisable for the administration of
                the Plan,

                        (iv) to prescribe, amend, and rescind rules and
                regulations relating to the Plan, including, without limitation,
                rules with respect to the exercisability and nonforfeitability
                of Awards upon the Termination of Employment of a Grantee,

                        (v) to determine the terms and provisions of the Award
                Agreements, which need not be identical and, with the consent of
                the Grantee, to modify any such Award Agreement at any time,

                        (vi) to cancel, with the consent of the Grantee,
                outstanding Awards,

                        (vii) except with respect to Awards made to nonemployee
                directors, to accelerate the exercisability of, and to
                accelerate or waive any or all of the restrictions and
                conditions applicable to, any Award,

                        (viii) to authorize any action of or make any
                determination by the Company as the Committee shall deem
                necessary or advisable for carrying out the purposes of the
                Plan, and

                        (ix) to impose such additional conditions, restrictions,
                and limitations upon the grant, exercise or retention of Awards
                as the Committee may, before or concurrently with the grant
                thereof, deem appropriate, including, without limitation,
                requiring simultaneous exercise of related identified Awards,
                and limiting the percentage of Awards which may from time to
                time be exercised by a Grantee.

        Notwithstanding anything herein to the contrary, the exercise price of
outstanding Options may not be decreased (except pursuant to Article 18 of the
Plan) and Options may not be cancelled or forfeited and re-granted to effect the
same result. Notwithstanding anything herein to the contrary, with respect to
Grantees working outside the United States, the Committee may determine the
terms and provisions of the Award Agreements and make such adjustments or
modifications to Awards as are necessary and advisable to fulfill the purposes
of the Plan.

<PAGE>

                (d) Committee Determinations Final. The determination of the
        Committee on all matters relating to the Plan or any Award Agreement
        shall be conclusive and final. No member of the Committee shall be
        liable for any action or determination made in good faith with respect
        to the Plan or any Award.

        5. Eligibility.

        Awards may be granted to any employee of the Company, and to any
nonemployee director of the Company. In selecting the individuals to whom Awards
may be granted, as well as in determining the number of shares of Stock subject
to, and the other terms and conditions applicable to, each Award, the Committee
shall take into consideration such factors as it deems relevant in promoting the
purposes of the Plan.

        6. Conditions to Grants.

                (a) General Conditions.

                        (i) The Grant Date of an Award shall be the date on
                which the Committee grants the Award or such later date as
                specified in advance by the Committee.

                        (ii) The term of each Award (subject to Article 6(c)
                with respect to Incentive Stock Options) shall be a period of
                not more than ten years from the Grant Date and shall be subject
                to earlier termination as provided herein or in the applicable
                Award Agreement; provided, however, that the Committee may
                provide that an Option (other than an Incentive Stock Option)
                may, upon the death of the Grantee, be exercised for up to one
                year following the date of the Grantee's death even if such
                period extends beyond ten years from the date the Option is
                granted.

                        (iii) A Grantee may, if otherwise eligible, be granted
                additional Awards in any combination.

                        (iv) The Committee may grant Awards with terms and
                conditions which differ among the Grantees thereof. To the
                extent not set forth in the Plan, the terms and conditions of
                each Award shall be set forth in an Award Agreement.

                (b) Grant of Options and Exercise Price. The Committee may, in
        its discretion, shall grant Options as follows:

                        (i) Employee Options. Options to acquire unrestricted
                Stock or restricted Stock may be granted to any employee
                eligible under Article 5 to receive Awards. No later than the
                Grant Date of any Option, the Committee shall determine the
                Exercise Price.

                        (ii) Nonemployee Director Options.

                                (A). Discretionary Grants. Nonqualified Stock
                        Options to acquire unrestricted or restricted stock may
                        be granted to nonemployee directors of the Company from
                        time to time.

                                (B). Terms Applicable to all Nonemployee
                        Director Options. Each Nonqualified Stock Option granted
                        to a nonemployee director will be granted with an
                        Exercise Price of not less than 100% of the Fair Market
                        Value of the Stock on the Grant Date, will become
                        exercisable with respect to one-third of the underlying
                        shares on each of the first, second and third
                        anniversaries of the

<PAGE>

                        Grant Date, and will have a term of not more than ten
                        years. If a nonemployee director ceases to serve as a
                        director of the Company for any reason, any Nonqualified
                        Stock Option granted to such nonemployee director shall
                        be exercisable during its remaining term, to the extent
                        that such Nonqualified Stock Option was exercisable on
                        the date such nonemployee director ceased to be a
                        director.

                (c) Grant of Incentive Stock Options. At the time of the grant
        of any Option to an employee of the Company, the Committee may designate
        that such Option shall be an Incentive Stock Option. Any Option
        designated as an Incentive Stock Option:

                        (i) shall have an Exercise Price of (A) not less than
                100% of the Fair Market Value of the Stock on the Grant Date or
                (B) in the case of a 10% Owner, not less than 110% of the Fair
                Market Value of the Stock on the Grant Date;

                        (ii) shall have a term of not more than ten years (five
                years, in the case of a 10% Owner) from the Grant Date, and
                shall be subject to earlier termination as provided herein or in
                the applicable Award Agreement;

                        (iii) shall, if, with respect to any grant, the
                aggregate Fair Market Value of Stock (determined on the Grant
                Date) of all Incentive Stock Options granted under the Plan and
                "incentive stock options" (within the meaning of Section 422 of
                the Internal Revenue Code) granted under any other stock option
                plan of the Grantee's employer or any parent or subsidiary
                thereof (in either case determined without regard to this
                Article 6(c)) are exercisable for the first time during any
                calendar year exceeds $100,000, be treated as Nonqualified Stock
                Options. For purposes of the foregoing sentence, Incentive Stock
                Options shall be treated as Nonqualified Stock Options according
                to the order in which they were granted such that the most
                recently granted Incentive Stock Options are first treated as
                Nonqualified Stock Options;

                        (iv) shall be granted within ten years from the earlier
                of the date the Plan is adopted by the Board or the date the
                Plan is approved by the stockholders of the Company; and

                        (v) shall require the Grantee to notify the Committee of
                any disposition of any Stock issued pursuant to the exercise of
                the Incentive Stock Option under the circumstances described in
                Section 421(b) of the Internal Revenue Code (relating to certain
                disqualifying dispositions), within ten days of such
                disposition.

                (d) Grant of Shares of Restricted Stock.

                        (i) The Committee may, in its discretion, grant shares
                of restricted Stock to any individual eligible under Article 5
                to receive Awards.

                        (ii) Before the grant of any shares of restricted Stock,
                the Committee shall determine, in its discretion:

                                (A) whether the certificates for such shares
                        shall be delivered to the Grantee or held (together with
                        a stock power executed in blank by the Grantee) in
                        escrow by the Secretary of the Company until such shares
                        become nonforfeitable or are forfeited;

                                (B) the per share purchase price of such shares,
                        which may be zero; provided, however, that the per share
                        purchase price of all such shares (other

<PAGE>

                        than treasury shares) shall not be less than the Minimum
                        Consideration for each such share;

                                (C) the restrictions applicable to such grant
                        and the time or times upon which any applicable
                        restrictions on the restricted Stock shall lapse;
                        provided, however, that except in the case of shares of
                        restricted Stock issued to nonemployee directors or the
                        case of restricted stock issued in full or partial
                        settlement of another Award or other earned
                        compensation, or in the event of the Grantee's
                        Termination of Employment, as determined by the
                        Committee and set forth in an Award Agreement, such
                        restrictions shall not lapse prior to the first
                        anniversary of the Grant Date of the restricted Stock;
                        and

                                (D) whether the payment to the Grantee of
                        dividends, or a specified portion thereof, declared or
                        paid on such shares by the Company shall be deferred
                        until the lapsing of the restrictions imposed upon such
                        shares and shall be held by the Company for the account
                        of the Grantee, whether such dividends shall be
                        reinvested in additional shares of restricted Stock (to
                        the extent shares are available under Article 3) subject
                        to the same restrictions and other terms as apply to the
                        shares with respect to which such dividends are issued
                        or otherwise reinvested in Stock or held in escrow,
                        whether interest will be credited to the account of the
                        Grantee with respect to any dividends which are not
                        reinvested in restricted or unrestricted Stock, and
                        whether any Stock dividends issued with respect to the
                        restricted Stock to be granted shall be treated as
                        additional shares of restricted Stock.

                        (iii) Payment of the purchase price (if greater than
                zero) for shares of restricted Stock shall be made in full by
                the Grantee before the delivery of such shares and, in any
                event, no later than ten days after the Grant Date for such
                shares. Such payment may be made, as determined by the Committee
                in its discretion, in any one or any combination of the
                following:

                                (A) cash; or

                                (B) with the prior approval of the Committee,
                        shares of restricted or unrestricted Stock owned by the
                        Grantee prior to such grant and valued at its Fair
                        Market Value on the business day immediately preceding
                        the date of payment;

                provided, however, that, in the case of payment in shares of
                restricted or unrestricted Stock, if the purchase price for
                restricted Stock ("New Restricted Stock") is paid with shares of
                restricted Stock ("Old Restricted Stock"), the restrictions
                applicable to the New Restricted Stock shall be the same as if
                the Grantee had paid for the New Restricted Stock in cash
                unless, in the judgment of the Committee, the Old Restricted
                Stock was subject to a greater risk of forfeiture, in which case
                a number of shares of New Restricted Stock equal to the number
                of shares of Old Restricted Stock tendered in payment for New
                Restricted Stock shall be subject to the same restrictions as
                the Old Restricted Stock, determined immediately before such
                payment.

                        (iv) The Committee may, but need not, provide that all
                or any portion of a Grantee's Award of restricted Stock shall be
                forfeited:

                                (A) except as otherwise specified in the Award
                        Agreement, upon the Grantee's Termination of Employment
                        within a specified time period after the Grant Date; or

<PAGE>

                                (B) if the Company or the Grantee does not
                        achieve specified performance goals within a specified
                        time period after the Grant Date and before the
                        Grantee's Termination of Employment; or

                                (C) upon failure to satisfy such other
                        restrictions as the Committee may specify in the Award
                        Agreement.

                        (v) If a share of restricted Stock is forfeited, then:

                                (A) the Grantee shall be deemed to have resold
                        such share of restricted Stock to the Company at the
                        lesser of (1) the purchase price paid by the Grantee
                        (such purchase price shall be deemed to be zero dollars
                        ($0) if no purchase price was paid) or (2) the Fair
                        Market Value of a share of Stock on the date of such
                        forfeiture;

                                (B) the Company shall pay to the Grantee the
                        amount determined under clause (A) of this sentence, if
                        not zero, as soon as is administratively practicable,
                        but in any case within 90 days after forfeiture; and

                                (C) such share of restricted Stock shall cease
                        to be outstanding, and shall no longer confer on the
                        Grantee thereof any rights as a stockholder of the
                        Company, from and after the date of the Company's tender
                        of the payment specified in clause (B) of this sentence,
                        whether or not such tender is accepted by the Grantee,
                        or the date the restricted Stock is forfeited if no
                        purchase price was paid for the restricted Stock.

                        (vi) Any share of restricted Stock shall bear an
                appropriate legend specifying that such share is
                non-transferable and subject to the restrictions set forth in
                the Plan and the Award Agreement. If any shares of restricted
                Stock become nonforfeitable, the Company shall cause
                certificates for such shares to be issued or reissued without
                such legend and delivered to the Grantee or, at the request of
                the Grantee, shall cause such shares to be credited to a
                brokerage account specified by the Grantee.

                (e) Grant of Performance Units and Performance Shares.

                        (i) The Committee may, in its discretion, grant
                performance units or performance shares to any employee of the
                Company eligible under Article 5 to receive Awards.

                        (ii) Before the grant of any performance unit or
                performance share, the Committee shall:

                                (A) designate a period, of not less than one
                        year nor more than five years, for the measurement of
                        the extent to which performance goals are attained (the
                        "Measuring Period");

                                (B) determine performance goals applicable to
                        such grant; provided, however, that the performance
                        goals with respect to a Measuring Period shall be
                        established in writing by the Committee by the earlier
                        of (x) the date on which a quarter of the Measuring
                        Period has elapsed or (y) the date which is ninety (90)
                        days after the commencement of the Measuring Period, and
                        in any event while the performance relating to the
                        performance goals remain substantially uncertain; and

<PAGE>

                                (C) assign a "Performance Percentage" to each
                        level of attainment of performance goals during the
                        Measuring Period, with the percentage applicable to
                        minimum attainment being zero percent (0%) and the
                        percentage applicable to optimum attainment to be
                        determined by the Committee from time to time.

                        (iii) The performance goals applicable to performance
                units or performance shares shall, in the discretion of the
                Committee, be based on stock price, earnings per share,
                operating income, return on equity or assets, cash flow, EBITDA,
                revenues, overall revenue or sales growth, expense reduction or
                management, market position, total shareholder return, return on
                investment, earnings before interest and taxes (EBIT), net
                income, return on net assets, economic value added, shareholder
                value added, cash flow return on investment, net operating
                profit, net operating profit after tax, return on capital, and
                return on invested capital, or any combination of the foregoing.
                Such performance goals may be absolute or relative (to prior
                performance or to the performance of one or more other entities
                or external indices) and may be expressed in terms of a
                progression within a specified range. At the time of the
                granting of performance units or performance shares, or at any
                time thereafter, in either case to the extent permitted under
                Section 162(m) of the Internal Revenue Code and the regulations
                thereunder without adversely affecting the treatment of the
                performance unit or performance share as Performance-Based
                Compensation, the Committee may provide for the manner in which
                performance will be measured against the performance goals (or
                may adjust the performance goals) to reflect the impact of
                specified corporate transactions, special charges, foreign
                currency effects, accounting or tax law changes and other
                extraordinary or nonrecurring events.

                        (iv) Prior to the vesting, payment, settlement or
                lapsing of any restrictions with respect to any performance unit
                or performance share that is intended to constitute
                Performance-Based Compensation made to a Grantee who is subject
                to Section 162(m) of the Internal Revenue Code, the Committee
                shall certify in writing that the applicable performance goals
                have been satisfied.

                        (v) Unless otherwise expressly stated in the relevant
                Award Agreement, each performance unit and performance share
                granted under the Plan is intended to be Performance-Based
                Compensation and the Committee shall interpret and administer
                the applicable provisions of the Plan in a manner consistent
                therewith. Any provisions inconsistent with such treatment shall
                be inoperative and shall not adversely affect the treatment of
                performance units or performance shares granted hereunder as
                Performance-Based Compensation. The Committee shall not be
                entitled to exercise any discretion otherwise authorized
                hereunder with respect to such performance unit or performance
                share if the ability to exercise such discretion or the exercise
                of such discretion itself would cause the compensation
                attributable to such performance unit or performance share to
                fail to qualify as Performance-Based Compensation.

                (f) Grant of Stock Appreciation Rights. The Committee may, in
        its discretion, grant Stock Appreciation Rights to any employee who is
        eligible under Article 5 to receive Awards as follows:

                        (i) Employee Stock Appreciation Rights. Stock
                Appreciation Rights may be granted to any employee eligible
                under Article 5 to receive Awards. No later than the Grant Date
                of any Stock Appreciation Right, the Committee shall determine
                the Exercise Price.

                        (ii) Nonemployee Director Stock Appreciation Rights.

<PAGE>

                                (A). Discretionary Grants. Stock Appreciation
                        Rights may be granted to nonemployee directors of the
                        Company from time to time.

                                (B). Terms Applicable to all Nonemployee
                        Director Stock Appreciation Rights. Each Stock
                        Appreciation Right granted to a nonemployee director
                        will be granted with an Exercise Price not less than
                        100% of the Fair Market Value of the Stock on the Grant
                        Date, will become exercisable with respect to one-third
                        of the underlying shares on each of the first, second
                        and third anniversaries of the Grant Date, and will have
                        a term of not more than ten years. If a nonemployee
                        director ceases to serve as a director of the Company
                        for any reason, any Stock Appreciation Rights granted to
                        such nonemployee director shall be exercisable during
                        its remaining term, to the extent that such Stock
                        Appreciation Right was exercisable on the date such
                        nonemployee director ceased to be a director.

                (g) Tandem Awards. The Committee may grant and identify any
        Award with any other Award granted under the Plan ("Tandem Award"), on
        terms and conditions determined by the Committee.

        7. Non-transferability.

        Unless set forth in the applicable Award Agreement with respect to
Awards other than Incentive Stock Options, no Award (other than an Award of
restricted Stock) granted hereunder shall by its terms be assignable or
transferable except by will or the laws of descent and distribution or, in the
case of an Option other than an Incentive Stock Option, pursuant to a domestic
relations order (within the meaning of Rule 16a-12 promulgated under the
Exchange Act). An Option may be exercised during the lifetime of a Grantee only
by the Grantee or his or her guardian or legal representatives or, except as
would cause an Incentive Stock Option to lose its status as such, by a
bankruptcy trustee. Notwithstanding the foregoing, the Committee may set forth
in the Award Agreement evidencing an Award (other than an Incentive Stock
Option) at the time of grant or thereafter, that the Award may be transferred to
members of the Grantee's immediate family, to trusts solely for the benefit of
such immediate family members and to partnerships in which such family members
and/or trusts are the only partners, and for purposes of this Plan, a transferee
of an Award shall be deemed to be the Grantee. For this purpose, immediate
family means the Grantee's spouse, parents, children, stepchildren and
grandchildren and the spouses of such parents, children, stepchildren and
grandchildren. The terms of an Award shall be final, binding and conclusive upon
the beneficiaries, executors, administrators, heirs and successors of the
Grantee. Each share of restricted Stock shall be non-transferable until such
share becomes nonforfeitable.

        8. Exercise.

                (a) Exercise of Options and Stock Appreciation Rights. Subject
        to such terms and conditions as the Committee may impose, each Option or
        Stock Appreciation Right shall be exercisable in one or more
        installments commencing not earlier than the first anniversary of the
        Grant Date of such Option or Stock Appreciation Right; provided,
        however, that all Options or Stock Appreciation Rights held by each
        Grantee shall become fully (100%) vested and exercisable upon the
        occurrence of a Change of Control regardless of whether the acceleration
        of the exercisability of such Options or Stock Appreciation Rights would
        cause such Options to lose their eligibility for treatment as Incentive
        Stock Options. Each Option or Stock Appreciation Right shall be
        exercised by delivery to the Company of written notice of intent to
        purchase a specific number of shares of Stock subject to the Option. The
        Exercise Price of any shares of Stock as to which an Option or Stock
        Appreciation Right shall be exercised shall be paid in full at the time
        of the exercise. Payment may be made, as determined by the Committee in
        its discretion with respect to Options or Stock Appreciation Rights
        granted to eligible employees and in all cases with respect to Options
        or Stock Appreciation Rights granted to nonemployee directors, in any
        one or any combination of the following:

<PAGE>

                        (i) cash,

                        (ii) shares of unrestricted Stock held by the Grantee
                for at least six months (or such lesser period as may be
                permitted by the Committee) prior to the exercise of the Option
                or Stock Appreciation Right, and valued at its Fair Market Value
                on the last business day immediately preceding the date of
                exercise, or

                        (iii) through simultaneous sale through a broker of
                shares of unrestricted Stock acquired on exercise, as permitted
                under Regulation T of the Federal Reserve Board.

        Shares of unrestricted Stock acquired by a Grantee on exercise of an
Option shall be delivered to the Grantee or, at the request of the Grantee,
shall be credited directly to a brokerage account specified by the Grantee.

                (b) Exercise of Performance Units.

                        (i) Subject to such terms and conditions as the
                Committee may impose, and unless otherwise provided in the
                applicable Award Agreement, if, with respect to any performance
                unit, the Committee has determined that the minimum performance
                goals have been achieved during the applicable Measuring Period,
                then such performance unit shall be deemed exercised on the date
                on which it first becomes exercisable.

                        (ii) The benefit for each performance unit exercised
                shall be an amount equal to the product of

                                (A) the Unit Value (as defined below),
                        multiplied by

                                (B) the Performance Percentage attained during
                        the Measuring Period for such performance unit.

                        (iii) The Unit Value shall be, as specified by the
                Committee,

                                (A) a dollar amount,

                                (B) an amount equal to the Fair Market Value of
                        a share of Stock on the Grant Date,

                                (C) an amount equal to the Fair Market Value of
                        a share of Stock on the exercise date of the performance
                        unit, plus, if so provided in the Award Agreement, an
                        amount ("Dividend Equivalent Amount") equal to the Fair
                        Market Value of the number of shares of Stock that would
                        have been purchased if each dividend paid on a share of
                        Stock on or after the Grant Date and on or before the
                        exercise date were invested in shares of Stock at a
                        purchase price equal to its Fair Market Value on the
                        respective dividend payment date, or

                                (D) an amount equal to the Fair Market Value of
                        a share of Stock on the exercise date of the performance
                        unit (plus, if so specified in the Award Agreement, a
                        Dividend Equivalent Amount), reduced by the Fair Market
                        Value of a share of Stock on the Grant Date of the
                        performance unit.

                        (iv) The benefit upon the exercise of a performance unit
                shall be payable as soon as is administratively practicable (but
                in any event within 90 days) after the later of (A) the date the
                Grantee is deemed to exercise such performance unit, or (B) the
                date (or dates in

<PAGE>

                the event of installment payments) as provided in the applicable
                Award Agreement. Such benefit shall be payable in cash or
                restricted Stock, except that the Committee, with respect to any
                particular exercise, may, in its discretion, pay benefits wholly
                or partly in Stock delivered to the Grantee or credited to a
                brokerage account specified by the Grantee. The number of shares
                of Stock payable in lieu of cash shall be determined by valuing
                the Stock at its Fair Market Value on the business day next
                preceding the date such benefit is to be paid.

                (c) Payment of Performance Shares. Subject to such terms and
        conditions as the Committee may impose, and unless otherwise provided in
        the applicable Award Agreement, if the Committee has determined in
        accordance with Article 6(e)(iv) that the minimum performance goals with
        respect to an Award of performance shares have been achieved during the
        applicable Measuring Period, then the Company shall pay to the Grantee
        of such Award (or, at the request of the Grantee, deliver to a brokerage
        account specified by the Grantee) shares of restricted Stock or Stock
        equal in number to the product of the number of performance shares
        specified in the applicable Award Agreement multiplied by the
        Performance Percentage achieved during such Measuring Period, except to
        the extent that the Committee in its discretion determines that cash be
        paid in lieu of some or all of such shares of Stock. The amount of cash
        payable in lieu of a share of Stock shall be determined by valuing such
        share at its Fair Market Value on the business day next preceding the
        date such cash is to be paid. Payments pursuant to this Article 8(d)
        shall be made as soon as administratively practicable (but in any event
        within 90 days) after the end of the applicable Measuring Period. Any
        performance shares with respect to which the performance goals have not
        been achieved by the end of the applicable Measuring Period shall
        expire.

                (d) Exercise, Cancellation, Expiration or Forfeiture of Tandem
        Awards. Upon the exercise, cancellation, expiration, forfeiture or
        payment in respect of any Award which is identified with any Tandem
        Award pursuant to Article 6(g), the Tandem Award shall automatically
        terminate to the extent of the number of shares in respect of which the
        Award is so exercised, cancelled, expired, forfeited or paid, unless
        otherwise provided by the Committee at the time of grant of the Tandem
        Award or thereafter.

        9. Effect of Certain Transactions.

        With respect to any Award which relates to Stock, in the event of (i)
the liquidation or dissolution of the Company or (ii) a merger or consolidation
of the Company (a "Transaction"), the Plan and the Awards issued hereunder shall
continue in effect in accordance with their respective terms, except that
following a Transaction either (i) each outstanding Award shall be treated as
provided for in the agreement entered into in connection with the Transaction
(the "Transaction Agreement") or (ii) if not so provided in the Transaction
Agreement, each Grantee shall be entitled to receive in respect of each share of
Stock subject to any outstanding Awards, upon the vesting, payment or exercise
of the Award (as the case may be), the same number and kind of stock,
securities, cash, property, or other consideration that each holder of a share
of Stock was entitled to receive in the Transaction in respect of a share of
Stock.

        10. Mandatory Withholding Taxes.

        The Company shall have the right to deduct from any distribution of cash
to any Grantee an amount equal to the federal, state and local income taxes and
other amounts as may be required by law to be withheld (the "Withholding Taxes")
with respect to any Award. If a Grantee is to experience a taxable event in
connection with (i) the receipt of an Award, (ii) the receipt of shares pursuant
to an Option exercise, (iii) the vesting or payment of another type of Award or
(iv) any other event in connection with the Plan (a "Taxable Event"), the
Grantee shall pay the Withholding Taxes to the Company prior to the issuance, or
release from escrow, of such Award or shares or vesting or payment of such Award
or occurrence of such event, as applicable. Payment of the applicable
Withholding Taxes may be made, as determined by the Committee in its discretion,
in any one or any combination of (i) cash, (ii) shares of restricted or
unrestricted Stock owned by the Grantee prior to the Taxable Event and valued at
its Fair

<PAGE>

Market Value on the business day immediately preceding the date of exercise, or
(iii) by making a Tax Election (as described below). For purposes of this
Article 11, the Committee may provide in the Award Agreement at the time of
grant, or at any time thereafter, that the Grantee, in satisfaction of the
obligation to pay Withholding Taxes to the Company, may elect to have withheld a
portion of the shares then issuable to him or her having an aggregate Fair
Market Value equal to the Withholding Taxes.

        11. Termination of Employment.

        The Award Agreement pertaining to each Award shall set forth the terms
and conditions applicable to such Award upon a Termination of Employment of the
Grantee by the Company, a Subsidiary or an operating division or unit, which,
except for Awards granted to nonemployee directors, shall be as the Committee
may, in its discretion, determine at the time the Award is granted or
thereafter.

        12. Securities Law Matters.

                (a) If the Committee deems it necessary to comply with the
        Securities Act of 1933, the Committee may require a written investment
        intent representation by the Grantee and may require that a restrictive
        legend be affixed to certificates for shares of Stock.

                (b) If, based upon the opinion of counsel for the Company, the
        Committee determines that the exercise or nonforfeitability of, or
        delivery of benefits pursuant to, any Award would violate any applicable
        provision of (i) federal or state securities law, (ii) the listing
        requirements of any national securities exchange on which are listed any
        of the Company's equity securities or (iii) any other law or regulation,
        then the Committee may postpone any such exercise, nonforfeitability or
        delivery, as the case may be, but the Company shall use its best
        efforts, if applicable, to cause such exercise, nonforfeitability or
        delivery to comply with all such provisions at the earliest practicable
        date.

                (c) Notwithstanding any provision of the Plan or any Award
        Agreement to the contrary, no shares of Stock shall be issued to any
        Grantee in respect of any Award prior to the time a registration
        statement under the Securities Act of 1933 is effective with respect to
        such shares.

        13. No Funding Required.

        Benefits payable under the Plan to any person shall be paid directly by
the Company. The Company shall not be required to fund, or otherwise segregate
assets to be used for payment of, benefits under the Plan.

        14. No Employment Rights.

        Neither the establishment of the Plan, nor the granting of any Award
shall be construed to (a) give any Grantee the right to remain employed by the
Company or to any benefits not specifically provided by the Plan or (b) in any
manner modify the right of the Company or any of its Subsidiaries to modify,
amend, or terminate any of its employee benefit plans.

        15. Rights as a Stockholder.

        A Grantee shall not, by reason of any Award (other than restricted
Stock), have any right as a stockholder of the Company with respect to the
shares of Stock which may be deliverable upon exercise or payment of such Award
until such shares have been delivered to him. Shares of restricted Stock held by
a Grantee or held in escrow by the Secretary of the Company shall confer on the
Grantee all rights of a stockholder of the Company, except as otherwise provided
in the Plan.

<PAGE>

        16. Nature of Payments.

        Any and all grants, payments of cash, or deliveries of shares of Stock
hereunder shall constitute special incentive payments to the Grantee and shall
not be taken into account in computing the amount of salary or compensation of
the Grantee for the purposes of determining any pension, retirement, death or
other benefits under (a) any pension, retirement, profit-sharing, bonus, life
insurance or other employee benefit plan of the Company or any of its
Subsidiaries or (b) any agreement between the Company, on the one hand, and the
Grantee, on the other hand, except as such plan or agreement shall otherwise
expressly provide.

        17. Non-Uniform Determinations.

        Neither the Committee's nor the Board's determinations under the Plan
need be uniform and may be made by the Committee or the Board selectively among
persons who receive, or are eligible to receive, Awards (whether or not such
persons are similarly situated). Without limiting the generality of the
foregoing, the Committee shall be entitled, among other things, to make
non-uniform and selective determinations, to enter into non-uniform and
selective Award Agreements as to (a) the identity of the Grantees, (b) the terms
and provisions of Awards, and (c) the treatment of Terminations of Employment.

        18. Adjustments.

        In the event of Change in Capitalization, the Committee shall, in its
sole discretion, make equitable adjustment of

                (a) the aggregate number and class of shares of Stock or other
                stock or securities available under Article 3,
                (b) the number and class of shares of Stock or other stock or
                securities covered by an Award and to be covered by Options or
                Stock Appreciation Rights,
                (c) the Exercise Price applicable to outstanding Options,
                (d) the terms of performance unit and performance share grants
                (to the extent permitted under Section 162(m)) of the Internal
                Revenue Code and the regulations thereunder without adversely
                affecting the treatment of the performance unit or performance
                share as Performance-Based Compensation,
                (e) the Fair Market Value of Stock to be used to determine the
                amount of the benefit payable upon exercise of performance units
                and performance shares,
                (f) the maximum number and class of shares of Stock or other
                securities with respect to which Awards may be granted to any
                individual in any calendar year period.

        19. Amendment of the Plan.

        The Board may from time to time in its discretion amend or modify the
Plan without the approval of the stockholders of the Company, except as such
stockholder approval may be required (a) to retain Incentive Stock Option
treatment under Section 422 of the Internal Revenue Code, (b) to permit
transactions in Stock pursuant to the Plan to be exempt from potential liability
under Section 16(b) of the 1934 Act or (c) under the listing requirements of any
securities exchange on which any of the Company's equity securities are listed.

        20. Termination of the Plan.

        The Plan shall terminate on the tenth (10th) anniversary of the
Effective Date or at such earlier time as the Board may determine. Any
termination, whether in whole or in part, shall not affect any Award then
outstanding under the Plan.

<PAGE>

        21. No Illegal Transactions.

        The Plan and all Awards granted pursuant to it are subject to all laws
and regulations of any governmental authority which may be applicable thereto;
and notwithstanding any provision of the Plan or any Award, Grantees shall not
be entitled to exercise Awards or receive the benefits thereof and the Company
shall not be obligated to deliver any Stock or pay any benefits to a Grantee if
such exercise, delivery, receipt or payment of benefits would constitute a
violation by the Grantee or the Company of any provision of any such law or
regulation or applicable court order.

        22. Governing Law.

        Except where preempted by federal law, the law of the State of Georgia
shall be controlling in all matters relating to the Plan, without giving effect
to the conflicts of law principles thereof.

        23. Severability.

        If all or any part of the Plan is declared by any court or governmental
authority to be unlawful or invalid, such unlawfulness or invalidity shall not
serve to invalidate any portion of the Plan not declared to be unlawful or
invalid. Any Article or part of an Article so declared to be unlawful or invalid
shall, if possible, be construed in a manner which will give effect to the terms
of such Article or part of an Article to the fullest extent possible while
remaining lawful and valid.

        24. Translations.

        Any inconsistency between the terms of the Plan or any Award Agreement
and the corresponding translation thereof into a language other than English
shall be resolved by reference, solely, to the English language document.

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