Document:

<PAGE>

                                                                    EXHIBIT 10.8

          FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND CONSENT

      THIS FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND CONSENT (this
"Amendment"), dated as of February 9, 2005, is entered into between CONGRESS
FINANCIAL CORPORATION (SOUTHWEST), a Texas corporation ("Lender"), and CITI
TRENDS, INC., a Delaware corporation ("Borrower").

                                    RECITALS

      A. Borrower and Lender have previously entered into that certain Loan and
Security Agreement dated April 2, 1999, as amended by that certain First
Amendment to Loan and Security Agreement dated June 22,2000, that certain Second
Amendment to Loan and Security Agreement dated November 30,2000, that certain
letter agreement dated August ____, 2001 regarding Borrower's name change, and
that certain Third Amendment to Loan and Security Agreement dated January
___, 2003 (as amended, the "Loan Agreement"), pursuant to which Lender has made
certain loans and financial accommodations available to Borrower. Terms used
herein without definition shall have the meanings ascribed to them in the Loan
Agreement.

      B. Borrower desires to sell its common stock in an initial public offering
(the "IPO"). Borrower has requested that Lender consent to the IPO and amend the
Loan Agreement, and Lender is willing to provide such consent and to amend the
Loan Agreement, all upon the terms and conditions set forth below.

      C. Borrower is entering into this Amendment with the understanding and
agreement that, except as specifically provided herein, none of Lender's rights
or remedies as set forth in the Loan Agreement is being waived or modified by
the terms of this Amendment.

                                    AMENDMENT

      NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

      1. Amendments to Loan Agreement.

            (a) Section 3.6 is hereby amended and restated in its entirety to
read as follows:

                  "3.6 Unused Line Fee. Borrower shall pay to Lender monthly an
                  unused line fee at a rate equal to three-eighths of one
                  percent (0.375%) per annum calculated upon the amount by which
                  Fifteen Million Dollars ($15,000,000) exceeds the average
                  daily principal balance of the outstanding Revolving Loans and
                  Letter of Credit Accommodations during the immediately
                  preceding month (or part thereof) while this Agreement is in
                  effect and for so long thereafter as any of the Obligations
                  are outstanding, which fee shall be payable on the first day
                  of each month in arrears."

<PAGE>

            (b)   Section 9.15 of the Loan Agreement is hereby amended and
restated in its entirety to read as follows:

                  "9.15 Adjusted Tangible Net Worth. Borrower shall maintain its
                  Adjusted Tangible Net Worth, measured as at the end of each
                  fiscal quarter, at an amount not less than the amount set
                  forth opposite such quarter:

<TABLE>
<CAPTION>
                                 Minimum Adjusted Tangible
                                 -------------------------
 Fiscal Quarter Ending                   Net Worth
 ---------------------                  ------------
<S>                              <C>
        April 30, 2005                  $15,000,000
          July 31,2005                  $17,500,000
       October 31,2005                  $20,000,000
       January 31,2006                  $25,000,000
        April 30, 2006                  $28,000,000
          July 31,2006                  $28,000,000
       October 31,2006                  $28,000,000
       January 31,2007                  $34,000,000
        April 30, 2007                  $37,000,000
</TABLE>

                  ; provided, however, if Borrower sells its common stock in an
                  initial public offering, Borrower and Lender will enter into
                  an amendment to this Agreement, in form and substance
                  satisfactory to Lender, to reset this minimum Adjusted
                  Tangible Net Worth covenant as of the last day of each fiscal
                  quarter of Borrower after December 31,2005 at levels as
                  reasonably determined by Lender based upon the Borrower's
                  projections for such time periods."

            (c)   The first sentence of Section 12.l (a) of the Loan Agreement
is hereby amended and restated in its entirety to read as follows:

                  "This Agreement and the other Financing Agreements shall
                  become effective as of the date set forth on the first page
                  hereof and shall continue in full force and effect for a term
                  ending on April 2, 2007."

            (d)   Sections 12.l (c)(i) and (ii) of the Loan Agreement are hereby
amended and restated in their entirely to read as follows:

<TABLE>
<CAPTION>
             Amount                                   Period
           ----------                                --------
<S>                                     <C>
(i)      1% of the Maximum Credit       from the date of this Agreement
                                        to and including April 2, 2006

(ii)     5% of the Maximum Credit       from April 3, 2004 to and
                                        including April 1, 2007
</TABLE>

            (c)   The last paragraph of Section 12.1(c) of the Loan Agreement is
hereby amended and restated in its entirety to read as follows:

                                        2

<PAGE>

                  "Notwithstanding the foregoing, the early termination fee
                  shall be waived (a) if the termination is due to the
                  refinancing of the Obligations by Wachovia Bank, National
                  Association and if at the time of such refinancing there is no
                  Event of Default or event or circumstance which, with notice
                  or passage of time or both, would become an Event of Default
                  under this Agreement, or (b) if Borrower chooses to exercise
                  the right to terminate this Agreement and the other Financing
                  Agreements upon any assignment by Lender of its rights or
                  obligations under or related to this Agreement or the other
                  Financing Agreements to a non-U.S. Lender, defined as any
                  Lender that is not a "United States person," within the
                  meaning of Section 7701(a)(30) of the Code."

      2. Consent. Lender hereby consents to the IPO and acknowledges and agrees
that consummation of the IPO shall not constitute an Event of Default under
Section 10.1(l) of the Loan Agreement.

      3. Effectiveness of this Amendment. Lender must have received the
following items, in form and content acceptable to Lender, before this Amendment
is effective, and before Lender is required to extend any credit to Borrower as
provided for by this Amendment.

            (a) Amendment. This Amendment, fully executed in a sufficient number
of counterparts for distribution to all parties.

            (b) Extension Fee. An amendment fee in the amount of Forty Thousand
Dollars ($40,000), which fee is fully earned as of and due and payable on the
date hereof.

            (c) Representations and Warranties. The representations and
warranties set forth herein and in the Loan Agreement must be true and correct.

            (d) Other Required Documentation. All other documents and legal
matters in connection with the transactions contemplated by this Amendment shall
have been delivered or executed or recorded and shall be in form and substance
satisfactory to Lender.

      4. Representations and Warranties. Borrower represents and warrants as
follows:

            (a) Authority. Borrower has the requisite corporate power and
authority to execute and deliver this Amendment, and to perform its obligations
hereunder and under the Financing Agreements (as amended or modified hereby) to
which it is a party. The execution, delivery and performance by Borrower of this
Amendment have been duly approved by all necessary corporate action and no other
corporate proceedings are necessary to consummate such transactions.

            (b) Enforceability. This Amendment has been duly executed and
delivered by Borrower. This Amendment and each Financing Agreement (as amended
or modified hereby) is the legal, valid and binding obligation of Borrower,
enforceable against Borrower in accordance with its terms, and is in full force
and effect.

            (c) Representations and Warranties. The representations and
warranties contained in each Financing Agreement (other than any such
representations or warranties that,

                                        3

<PAGE>

by their terms, are specifically made as of a date other than the date hereof)
are correct on and as of the date hereof as though made on and as of the date
hereof.

            (d) Due Execution. The execution, delivery and performance of this
Amendment are within the power of Borrower, have been duly authorized by all
necessary corporate action, have received all necessary governmental approval,
if any, and do not contravene any law or any contractual restrictions binding on
Borrower.

            (e) No Default. No event has occurred and is continuing that
constitutes an Event of Default.

            (f) No Duress. This Amendment has been entered into without force or
duress, of the free will of Borrower. Borrower's decision to enter into this
Amendment is a fully informed decision and Borrower is aware of all legal and
other ramifications of such decision.

            (g) Counsel. Borrower has read and understands this Amendment, has
consulted with and been represented by legal counsel in connection herewith, and
has been advised by its counsel of its rights and obligations hereunder and
thereunder.

      5. Choice of Law. The validity of this Amendment, its construction,
interpretation and enforcement, the rights of the parties hereunder, shall be
determined under, governed by, and construed in accordance with the internal
laws of the State of New York (without giving effect to principals of conflicts
of law).

      6. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties and separate counterparts, each of which
when so executed and delivered, shall be deemed an original, and all of which,
when taken together, shall constitute one and the same instrument. Delivery of
an executed counterpart of a signature page to this Amendment by telefacsimile
shall be effective as delivery of a manually executed counterpart of this
Amendment.

      7. Reference to and Effect on the Financing Agreements.

            (a) Upon and after the effectiveness of this Amendment, each
reference in the Loan Agreement to "this Agreement", "hereunder", "hereof or
words of like import referring to the Loan Agreement, and each reference in the
other Financing Agreements to "the Loan Agreement", "thereof" or words of like
import referring to the Loan Agreement, shall mean and be a reference to the
Loan Agreement as modified and amended hereby.

            (b) Except as specifically amended above, the Loan Agreement and all
other Financing Agreements, are and shall continue to be in full force and
effect and are hereby in all respects ratified and confirmed and shall
constitute the legal, valid, binding and enforceable obligations of Borrower to
Lender.

            (c) The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of Lender under any of the Financing Agreements, nor
constitute a waiver of any provision of any of the Financing Agreements.

                                        4

<PAGE>

            (d) To the extent that any terms and conditions in any of the
Financing Agreements shall contradict or be in conflict with any terms or
conditions of the Loan Agreement, after giving effect to this Amendment, such
terms and conditions are hereby deemed modified or amended accordingly to
reflect the terms and conditions of the Loan Agreement as modified or amended
hereby.

      8. Ratification. Borrower hereby restates, ratifies and reaffirms each and
every term and condition set forth in the Loan Agreement, as amended hereby, and
the Financing Agreements effective as of the date hereof.

      9. Estoppel. To induce Lender to enter into this Amendment and to continue
to make advances to Borrower under the Loan Agreement, Borrower hereby
acknowledges and agrees that, as of the date hereof, there exists no Event of
Default and no right of offset, defense, counterclaim or objection in favor of
Borrower as against Lender with respect to the Obligations.

      10. Integration. This Amendment, together with the other Financing
Agreements, incorporates all negotiations of the parties hereto with respect to
the subject matter hereof and is the final expression and agreement of the
parties hereto with respect to the subject matter hereof.

      11. Severability. In case any provision in this Amendment shall be
invalid, illegal or unenforceable, such provision shall be severable from the
remainder of this Amendment and the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

                  [Remainder of Page Left Intentionally Blank]

                                        5

<PAGE>

      IN WITNESS WHEREOF, the parties have entered into this Amendment as of the
date first above written.

                                       CITI TRENDS, INC.,
                                       a Delaware corporation

                                       By: /s/ Tom Stoltz
                                           -------------------------------------
                                       Name: Tom Stoltz
                                             -----------------------------------
                                       Title: CFO
                                              ----------------------------------

                                       CONGRESS FINANCIAL CORPORATION
                                       (SOUTHWEST),
                                       a Texas corporation

                                       By: /s/ Joe T. Curdy
                                           -------------------------------------
                                       Name: Joe T. Curdy
                                             -----------------------------------
                                       Title: Vice President
                                              ----------------------------------

                                       6<PAGE>

                                                                    EXHIBIT 10.9

                                 LEASE AGREEMENT

                         MEYER WAREHOUSE, LLC, LANDLORD

                                       AND

                           CITI TRENDS, INC., TENANT

                                      INDEX

1.    Leased Premises
2.    Term of Lease and Rent
3.    Operating Expenses and Taxes
4.    Triple Net Lease
5.    Option to Renew
6.    General Agreement Between Landlord and Tenant
7.    Failure of Landlord to Maintain Premises
8.    Alterations and Additions
9.    Liens
10.   Insurance
11.   Waiver of Subrogation
12.   Hold Harmless
13.   Replacement of Building
14.   Condemnation of Premises
15.   Entry by Landlord
16.   Assignment and Subletting
17.   Holding Over
18.   Default
19.   Quiet Enjoyment
20.   As-is
21.   Estoppel Certificate
22.   Subordination
23.   Notices
24.   Authority of Parties
25.   Leasing Commission or Brokerage Fees
26.   Late Charges
27.   Interest on Past-Due Obligations
28.   Rules and Regulations
29.   Security Measures
30.   Tenant's Responsibility Regarding Hazardous Substances
31.   Easements and Covenants
32.   Landlord's Liability
33.   Fair Dealing; Consents; Assignment
34.   Purchase Option
35.   General Provisions

Exhibit A   Legal Description
Exhibit B   Site Plan
Exhibit C   Rules and Regulations
Exhibit D   Easements and Covenants
Exhibit E   Lien Waiver

<PAGE>

                                 LEASE AGREEMENT

      THIS LEASE AGREEMENT ("Lease") is made and entered into this 30th day of
September 2004, by and between MEYER WAREHOUSE LLC, a Georgia limited liability
company (the "Landlord"), and Citi Trends, Inc., a Delaware corporation
("Tenant"). This Lease supersedes and replaces all negotiations and other
agreements between the parties. Tenant has submitted to Landlord a signed
financial statement demonstrating its net worth and showing an ability to
perform.

      1. LEASED PREMISES. In consideration of the payment of the rent and the
performance of the agreements of Tenant hereinafter set forth, Landlord does
hereby lease unto Tenant and Tenant does hereby lease from Landlord the real
property and improvements, situate in the County of Chatham, and State of
Georgia, described on Exhibit A (the "Premises"), including a building
encompassing approximately Seventy-One Thousand Eight Hundred Seventy-Five
(71,875) gross square feet (the "Building"), as shown on the drawing attached as
Exhibit B. The Building is numbered as 104 Coleman Boulevard, Savannah, Georgia
31408.

      Tenant is accepting the Premises "as-is." Tenant will return the trash
compactor to Southern Paper Recovery (or make arrangements to keep the compactor
and have it removed before the Premises are restored).

      2. TERM OF LEASE AND RENT.

            a. TERM. The initial term of this Lease shall be for two (2) years,
      commencing on October 1, 2004 (the "Commencement Date") and terminating on
      the last day of September, 2006.

            b. ANNUAL BASE RENT. The Annual Base Rent for each full year of the
      Term of this Lease shall be payable in lawful money of the United States
      and shall be the sum of Two Hundred Fifteen Thousand Dollars ($215,000)
      payable in advance in monthly installments of Seventeen Thousand Nine
      Hundred Sixteen and 67/100 Dollars ($17,916.67) per month. The Annual Base
      Rent is not calculated on a per-square-foot basis and shall not be
      adjusted regardless of the actual square footage of the Building or the
      Premises except as may elsewhere be provided for in this Lease.

            c. OPERATING EXPENSE RENT. This is a triple-net lease. Subject to
      the provision below concerning expenses on parking lots, roof and
      structure in excess of $10,000, in addition to the payment of Annual Base
      Rent, Tenant shall pay any and all property and maintenance costs and all
      operating expenses, taxes, and insurance attributable to the Premises
      ("Operating Expense Rent"), whether directly under Section 3 or under
      Section 4 or by reimbursing Landlord or some combination thereof.

            d. PAYMENT OF RENT. Any and all Annual Base Rent and the amount of
      the Operating Expense Rent, if any, paid directly to Landlord
      (collectively "Rent") shall be paid in advance on or before the first day
      of each calendar month during said term at the office of Landlord at 211
      East York Street, Savannah, Georgia 31401, or at such other place as
      Landlord may designate from time to time in writing. In the event rent due
      under this Lease shall commence (or end) on any day other than the first
      (or last) day of a calendar month, the rental payments for the partial
      month shall be prorated to reflect the actual number of days the Premises
      were under lease.

<PAGE>

      3. OPERATING EXPENSES AND TAXES.

            a. The term "Operating Expenses and Taxes" means the sum of:

                  (1) All operating expenses of any kind or nature with respect
            to the Premises and shall include, but not be limited to, the
            following costs:

                        (a) building supplies;

                        (b) utility costs incurred in connection with all energy
                  sources for the Building, such as natural gas and electricity;

                        (c) water and sewer service;

                        (d) janitorial services required by the Lease;

                        (e) general maintenance of the Premises, including but
                  not limited to the interior, the exterior, the roof, and the
                  heating, electrical, and air conditioning systems of the
                  Building, but excluding repairs of the parking lot, roof and
                  structure beyond $10,000 per occurrence;

                        (f) landscaping and maintenance of the Premises;

                        (g) maintenance, repair, replacement, and striping of
                  all parking areas, subject to the limitation contained in (e);

                        (h) fire and extended coverage, public liability
                  insurance, "all risk" insurance, rental value insurance
                  covering a period of twelve (12) months, and all other
                  insurance required to be obtained by the Lease;

                        (i) labor costs incurred in the operation and
                  maintenance of the Premises, including wages and other
                  payments, costs to Landlord for workmen's compensation and
                  disability insurance, payroll taxes, and reasonable fringe
                  benefits;

                        (j) legal, accounting, inspection, and consultation fees
                  reasonably and necessarily incurred in connection with any
                  breach of this Lease if Landlord is the prevailing party;

                        (k) expenditures necessary to comply with ADA and any
                  other laws, rules, regulations, or orders of any governmental
                  authority having jurisdiction and expenditures solely of an
                  energy conservation, security, or handicapped access nature
                  required by any laws, rules, regulations, or orders of any
                  governmental authority having jurisdiction.

                  (2)   All taxes and assessments of any kind or nature against
            the Premises, including but not limited to:

                        (a) any form of assessment, special assessment, license
                  fee, license tax, business license fee, business license tax,
                  commercial rental tax, levy, charge, penalty, or other tax
                  imposed by any authority having the direct

<PAGE>

                  power to tax, including any city, county, state, or federal
                  government, or any school, agricultural, lighting, water,
                  drainage, or other municipal, improvement, or special
                  district, against the Building, the Premises, or any legal or
                  equitable interest of Landlord therein but excluding
                  Landlord's income tax; and

                        (b) any assessment, tax, fee, levy or charge in
                  substitution, partially or totally, of or in addition to any
                  assessment, tax, fee, levy, or charge which may be imposed by
                  governmental agencies for such services as fire protection;
                  street, sidewalk, and road maintenance; refuse removal; and
                  for other governmental services.

                  (3) Operating Expenses and Taxes shall not include:

                        (a) depreciation and amortization of Landlord;

                        (b) interest and principal payments on mortgages and
                  other debt, financing and refinancing costs, if any, of
                  Landlord;

                        (c) any leasing or brokerage commission or compensation,
                  including any advertising or promotional expense (except in
                  the event of a breach);

                        (d) repair expenses of the parking lots, roof, or
                  structural that are in excess of $10,000 per occurrence. (For
                  parking lot repairs, the only expenses for which Landlord
                  shall be liable are expenses in excess of $10,000 for each
                  occurrence to repair the parking lot to the condition it is
                  now; Landlord shall not be responsible for any upgrades.)

                        (e) payments to any affiliate of Landlord for goods or
                  services in excess of "market" costs;

                        (f) Landlord's federal, state, or local income tax; and

                        (g) Landlord's executive salaries and bonuses.

                  (4) "Operating Cost Year" means the twelve- (12) month period
            beginning on the Commencement Date of this Lease and any twelve-
            (12) month period thereafter.

            b. Any Operating Expense Rent payable by Tenant shall be payable as
      follows, unless otherwise provided: During the term hereof, Tenant shall
      pay to Landlord monthly in advance and every month thereafter during the
      initial term one-twelfth (1/12th) of the estimated amount of such
      Operating Expense Rent as determined by Landlord (and, if possible, based
      on the actual expenses for the preceding twelve- (12) month period). Such
      initial budget may be adjusted at the end of each twelve- (12) month
      period by Landlord, based on actual and expected increases; and Tenant
      shall pay installments of Operating Expense Rent according to such
      estimate or any adjustment thereof. In the event such estimated Operating
      Expense Rent exceeds the actual Operating Expense, Landlord shall credit
      Tenant for any excess payment within thirty (30) days of the end of each
      twelve- (12) month period. In the event such estimated Operating Expense
      Rent is less than the actual Operating Expense, Tenant shall pay the
      difference to Landlord promptly within thirty (30) days of demand
      therefor.

                                      -3-

<PAGE>

            c. Landlord shall maintain books of account, which shall be open
      during normal business hours to Tenant and its representatives for audit
      and inspection for one (1) year after billing for Operating Expense Rent
      so that Tenant can determine that such Operating Expense costs have, in
      fact, been paid or incurred and are within the definition of Operating
      Expenses. Tenant shall give Landlord at least thirty (30) days' notice of
      such inspection. Tenant shall pay the costs of such audit and any of
      Landlord's out-of-pocket expenses associated therewith.

            d. Even though the Lease has expired and Tenant has vacated the
      Premises, when the final determination is made of Tenant's share of actual
      Operating Expense for the previous twelve- (12) month period, Tenant
      shall, within thirty (30) days after receipt of written demand therefore
      together with reasonably detailed support for the charges, pay any
      increase due over the estimated amount previously paid and, conversely,
      any overpayment made shall be rebated by Landlord to Tenant within thirty
      (30) days after Landlord has determined the amount of Operating Expense
      has exceeded costs incurred. Failure of Landlord or Tenant to submit
      statements as called for herein shall not be deemed to be a waiver of
      Tenant's and/or Landlord's requirement to pay sums as herein provided,
      unless Landlord fails to submit a final invoice within one (1) year after
      the Lease terminates or Tenant fails to request a final invoice within one
      (1) year after the Lease terminates.

            e. Notwithstanding subsections (b), (c), and (d) above, Tenant shall
      arrange for and perform all maintenance and repairs and other items that
      would constitute operating expenses hereunder (except for payment of real
      estate taxes and Landlord's insurance). Notwithstanding the foregoing,
      Tenant shall pay in advance to Landlord monthly one-twelfth (1/12) of the
      taxes.

            f. Tenant shall pay upon execution hereof and yearly thereafter to
      Landlord an amount equal to one (1) year's payment of the insurance
      Landlord may maintain under Section 10 below or elsewhere.

      4. TRIPLE NET LEASE.

      It is the purpose and intent of Landlord and Tenant that this Lease be a
triple net Lease.

            a. Notwithstanding anything to the contrary anywhere hereunder,
      including in Sections 2, 3, 4, and 6, Tenant shall be responsible, at its
      sole cost and expense, for the entire and full maintenance, repair, and
      upkeep of the Premises and the Building and for the maintenance, repairs,
      replacements, and matters, including but not limited to those described in
      said sections and elsewhere; provided, however, Tenant shall not be
      responsible for repairs to parking lot, roof, or structure more than
      $10,000 per occurrence. (For parking lot repairs, the only expenses for
      which Landlord shall be liable are expenses in excess of $10,000 for each
      occurrence to repair the parking lot to the condition it is now. Landlord
      shall not be responsible for upgrades.) Tenant shall keep the Property,
      Premises, Building, grounds, and parking lot in good working order and
      repair and shall fix or replace all items which are broken. Tenant shall
      comply with all laws, rules, regulations, codes, and ordinances, at its
      expense. Landlord and its agents shall be entitled to periodically enter
      the Premises for the reason of inspection and to observe whether the
      Tenant is properly maintaining the Premises. Landlord shall be under no
      duty to inspect. If Landlord does inspect, such inspection shall not be a
      waiver of any right of Landlord or duty of Tenant. If after inspection of
      the Premises by Landlord, Landlord makes a good-faith determination that
      the maintenance is inadequate, Landlord shall notify Tenant in writing of
      such determination. In the event Tenant fails to correct such situation
      within thirty (30) days of receipt of such

                                      -4-

<PAGE>
      notice or if the nature of the situation is such that it cannot reasonably
      be corrected within a period of thirty (30) days and work thereon has not
      been initiated and diligently pursued to completion, Landlord shall have
      the right to declare a default; and Landlord shall also have the right to
      elect to perform and assume the maintenance and repair of the Premises and
      to perform the obligations set forth in Sections 2,3,4, and 6 hereof, all
      at Tenant's expense. In either event, the provisions of Sections 2,3,4,
      and 6.b. relating to maintenance shall apply.

            b. Under Sections 3.e. and 4.a. above, Tenant shall be responsible
      for and shall provide all service, maintenance, repair, and replacement to
      the Premises except those repairs or replacements excluded in Section 3a,
      including but not limited to that required under the definition of
      Operating Expenses, including (without limitation) mechanical systems,
      lighting, roof, utilities, roads, parking, landscaping, and grounds. Such
      activities shall be at least consistent with the standard of service for
      similar buildings. If Tenant does not comply, Landlord, at its option
      thereafter, may provide all of such service, at Tenant's expense.

            c. In connection with any repair where Tenant asks for
      reimbursement, Tenant will notify Landlord at least twenty (20) days prior
      to initiating the repair and provide copies of the bids and detailed
      information on the repair at that time. Landlord shall only be liable for
      costs where the notices were timely given and only for reasonable and
      necessary expenses above the $10,000 per occurrence for parking lot, roof,
      and structure.

            d. Tenant shall provide telephone service, comprehensive general
      liability insurance, workman's compensation insurance (or its equivalent),
      and security services and insurance on Tenant's property, all at Tenant's
      sole cost.

            e. At Landlord's option, Landlord (if it is providing services at
      Tenant's expense) may delegate the responsibility of providing services
      under this Lease to one or more rental managers or, with Tenant's prior
      consent, to Tenant.

      5. OPTION TO RENEW. Tenant shall have the option to renew and extend this
Lease for one (1) additional term of one (1) year, as long as Tenant is not in
default of the lease beyond any applicable cure periods.

            a. Tenant is given the option to extend the term on all the
      provisions contained in this Lease, including Annual Base Rent, for a one-
      (1) year period ("First Extended Term") by giving written notice of
      exercise of the option ("First Option Notice") to Landlord at least six
      (6) months but not more than one (1) year before the expiration of the
      initial term.

            b. Tenant, if it exercises the option in a. above and is not in
      default beyond any applicable cure periods, is given the option to extend
      the terms for a two- (2) year period (the "Second Extended Term") by
      giving written notice of exercise of the option (the "Second Option
      Notice") to Landlord at least six (6) months prior to the end of the first
      extended term but not more than one (1) year prior to the end of the first
      extended term. If Tenant exercises this option, the following shall be
      applicable:

                  (1) The Annual Base Rent shall be the greater of (a) $236,500
            per year, payable in advance monthly or (b) an amount determined by
            the Consumer Price Index. The index used shall be the Consumer Price
            Index for Savannah, Georgia, if available, or the area selected by
            Landlord near Savannah, Georgia. The amount shall be the Annual Base
            Rent multiplied by a fraction, the denominator (top) of which is the
            Consumer Price Index for the month which is six (6) months prior to
            the beginning of the second extended term and the numerator (bottom)
            of which is the

                                      -5-

<PAGE>

            same Consumer Price Index for the month which is six (6) months
            prior to the date of the initial term of this Lease.

                  (2) If Tenant exercises this second extended term, the figure
            of $10,000 found in Sections 3.a.(1)(e), 3.a.(3)(d), 4.a., and 4.c.
            shall be changed to $150,000.

            c. Tenant shall have no other right to extend the term beyond that
      provided above.

      6. GENERAL AGREEMENT BETWEEN LANDLORD AND TENANT:

            a. For and in consideration of leasing of the Premises aforesaid,
      Tenant does covenant and agree as follows:

                  (1) to pay the rent for the Premises hereinabove provided
            promptly when due and payable;

                  (2) to pay directly to the provider all charges for telephone
            services and utilities to the Premises promptly when due and
            payable;

                  (3) except as specifically permitted herein, to order no
            improvements or repairs and, at the expiration of this Lease, to
            surrender and deliver up the Premises in at least as good order and
            condition as when the same were entered upon, ordinary wear and tear
            excepted;

                  (4) to use the Premises for warehousing, distribution, office,
            and related business purposes and for no other purposes unless
            approved in advance by Landlord in writing, which approval will not
            be unreasonably withheld; to use the Premises for no purposes
            prohibited by the ordinances of the city or county in which the
            Premises are located or by the laws, rules, regulations, and codes
            of the United States or the State of Georgia, now in force or
            hereafter enacted; and for no unlawful purpose whatsoever; Tenant
            agrees not to request approval for any manufacturing activity or any
            activities involving storage of Hazardous Substances;

                  (5) to neither permit nor suffer any disorderly conduct, odor,
            noise, dust, or nuisance about the Premises having a tendency to
            unreasonably annoy or unreasonably disturb any persons occupying
            nearby properties;

                  (6) to commit no waste on the Premises;

                  (7) to not allow or permit heavy trucks on asphalt;

                  (8) to fully comply with all federal, state and local codes,
            statutes, laws, and ordinances ("Law"). Tenant shall be responsible
            to make and pay for any and all repairs and alterations to the
            components of the Premises (subject to the terms and provisions of
            this Lease) and to any appurtenances situated upon the Premises that
            may be required of the Landlord or Tenant as a result of any Law in
            effect at the time of execution of this Lease or which may be
            enacted during the term of this Lease.

                  (9) to neither permit nor suffer the Premises, or the walls,
            floors, doors, windows, roof, or ceiling thereof, to be endangered
            by overloading;

                                      -6-

<PAGE>

                  (10) to permit Landlord to place a For Rent sign upon the
            Premises at any time one hundred eighty (180) days before the
            expiration of the term or any extended term of this Lease; and

                  (11) to surrender and deliver up the possession of the
            Premises promptly at the expiration of this Lease or in case of
            termination of this Lease on account of a breach of any one or more
            of the covenants or agreements hereof.

            b. For and in consideration of this Lease, Tenant does covenant and
      agree to pay all Operating Expenses and Taxes, including (without
      limitation) assessments for water and sewer charges levied against such
      Premises and all charges for heating, cooling, gas, power, light,
      telephone, and all other services and utilities applied to the Premises:

                  (1) to keep and maintain all exterior and interior
            improvements upon the Premises (including lighting, landscaping, and
            blacktop or its equivalent) clean and neat in appearance and in good
            order and repair and to repair and maintain the same as the need
            arises;

                  (2) to furnish building standard heating and ventilating and
            air conditioning for the office space as appropriate for the season;

                  (3) to furnish janitorial service for the Building.

      7. FAILURE OF LANDLORD TO MAINTAIN PREMISES. If Landlord refuses or
neglects to pay an amount required under Section 3.a. and under Section 4.c.
(which is only to pay for the reasonable costs for parking lot, roof, and
structure repair costs above $10,000 per occurrence and any other matters that
Landlord elects to do) and if Tenant has paid all amounts due hereunder and
performed hereunder and complied with Section 4.c., Tenant may deduct the amount
owed by Landlord from rent, with applicable interest. This shall be Tenant's
sole remedy, notwithstanding any other provision herein.

      8. ALTERATIONS AND ADDITIONS.

            a. Tenant shall not make or allow to be made any alterations,
      additions, or improvements to or of the Premises or any part thereof
      without the prior written consent of Landlord, which shall not be
      unreasonably withheld. Any alterations, additions, or improvements to or
      of the Premises (but excepting furniture and equipment) and fixtures shall
      become a part of the realty and belong to Landlord and shall be
      surrendered with the Premises at the expiration of this Lease, at
      Landlord's option. No consent shall be needed for any non-structural
      alterations, additions, or improvements to the Premises which (i) cannot
      reasonably be expected to decrease the value of the Premises and (ii) the
      cost of which does not exceed $40,000.

            b. In the event Landlord consents to the making of any alterations,
      additions, or improvements to the Premises by Tenant, the same may be made
      by Tenant at Tenant's sole cost and expense in accordance with all
      applicable codes, ordinances, and other governmental regulations or, by
      mutual agreement, by Landlord at Tenant's sole cost.

      9. LIENS. Tenant shall keep the Premises free of mechanics',
materialmen's, judgment, tax, and all other liens and encumbrances, including
but not limited to those arising out of any construction or other work done for,
or debts incurred by, Tenant. Not less than twenty-one (21) days prior to the
commencement of any construction, alteration, or addition to the Premises,
Tenant shall notify Landlord in writing of its intention to commence the same
and provide written evidence of its

                                      -7-

<PAGE>

ability to pay for the work; and Landlord shall have the right to post and
maintain on the Premises such notices of non-responsibility as may be allowed
under applicable law.

      10. INSURANCE.

            a. Tenant agrees to provide comprehensive general liability
      insurance with combined single limits of not less than $2,000,000 per
      occurrence, written with a company authorized to do business in the State
      of Georgia and having a Best's Rating of at least A or its equivalent, and
      shall name Landlord, Landlord's mortgagees, or their assigns under said
      insurance policy as additional named insureds. The limit of said insurance
      shall not, however, limit any liability of Tenant here under. Tenant shall
      furnish to Landlord a certificate of insurance indicating that said policy
      is in full force and effect, that the premium is fully paid, that Landlord
      and Landlord's mortgagees have been named as additional insureds, and that
      said policy will not be canceled unless at least thirty (30) days' prior
      written notice of the proposed cancellation has been given to Landlord and
      Landlord's mortgagees.

            b. Landlord shall obtain and provide fire and extended coverage and
      property damage insurance in an amount equal to the fair market value of
      the Premises, written with a company authorized to do business in the
      State of Georgia and having a Best's Rating of at least A minus or its
      equivalent, and may, at Landlord's option, name Tenant under said
      insurance policy as an additional insured. Upon at least ten (10) days'
      prior written request, Landlord shall furnish Tenant a certificate of
      insurance indicating that said policy is in full force and effect, that
      the premium is fully paid, and that said policy will not be canceled
      unless at least thirty (30) days' prior written notice of the proposed
      cancellation has been given to Tenant. Said policy may contain rental
      interruption insurance, at Landlord's option. Tenant shall reimburse
      Landlord for the full and complete cost of said policy or, at Landlord's
      option, shall pay the bill for said policy within ten (10) days of
      presentment.

            c. Tenant shall purchase workmen's compensation insurance (or its
      equivalent) in compliance with all state, federal, and other governmental
      laws, rules, and regulations.

            d. Tenant shall fully insure any and all personal properly and trade
      fixtures owned by Tenant on the Premises.

            e. All insurance of Tenant under this Lease shall be written with an
      insurance company licensed to do business within the State of Georgia,
      with ratings of A and above, and not disapproved by Landlord (which
      disapproval shall not be unreasonable), with such policies to be
      non-assessable and fully paid and with thirty (30) days' prior notice to
      Landlord before cancellation.

            f. Notwithstanding anything herein to the contrary, Tenant shall
      maintain at least the amounts and coverages which are customarily
      maintained, including umbrella coverage. If it is customary to have more
      insurance or higher limits, Landlord may require Tenant to obtain such
      additional insurance.

            g. Upon request, Tenant will provide evidence of insurance. If
      Tenant fails to secure any policy, Landlord, at its option, may secure the
      policy, at Tenant's expense.

            h. Tenant shall cause Landlord and Richard Meyer III to be named
      insureds or additional insureds, as their interests may appear, under any
      policy which Tenant obtains.

      11.   WAIVER OF SUBROGATION. Landlord and Tenant agree to request in any
policy providing fire and extended coverage insurance and any other property
damage insurance as

                                      -8-

<PAGE>

required hereunder a waiver of any right of subrogation any such insurer of
either party may acquire or claim against the other party by reason of the
payment of any loss under such insurance with respect to damage to the Premises.

      12. HOLD HARMLESS. Tenant agrees to and shall indemnify and hold harmless
(including reasonable attorney's fees) Landlord against and from any and all
claims arising from any negligent act or omission of Tenant and its officers,
agents, and employees or arising out of the Premises or for a breach hereunder.

      13. REPLACEMENT OF BUILDING.

            a. In the event of a casualty to the Premises, a portion thereof, or
      any portion of the Building which causes the Building to become
      untenantable or prevents Tenant from using the Premises and the Building
      for their intended purpose on account of damage by fire, act of God, or
      other casualty, Landlord shall be given the option, in Landlord's sole
      discretion, to correct the deficiency or condition which shall render the
      Premises untenantable or to terminate this Lease.

            b. Tenant shall immediately notify Landlord of any damage to the
      building. Within twenty (20) days after receipt of written notice from
      Tenant describing the damage to the Premises, Landlord shall notify Tenant
      in writing as to whether or not it elects to repair the same. If in the
      reasonable opinion of Landlord it is not feasible to repair or rebuild the
      same, Landlord may terminate this Lease. In the event Landlord elects to
      repair said Premises, Landlord shall have one hundred twenty (120) days
      from the date of its notice to Tenant to effect such repairs; and Landlord
      shall diligently pursue the repair or replacement of the Building and the
      Premises and shall use commercially reasonable efforts to cause the repair
      or restoration to be completed and to restore the Building and Premises to
      at least the condition existing on the date immediately preceding the date
      the damage occurred. Landlord will not be liable or responsible if the
      repairs take longer.

            c. During the period from the date of Landlord's receipt of notice
      from Tenant of damage to the Premises until the Premises are restored to
      their prior condition and possession thereof given to Tenant, the rent
      shall abate, but only to the extent loss of rents insurance is paid to
      Landlord. Insurance against loss of rents shall be carried on the Premises
      at the cost and expense of Tenant. In the event of a scheduled rent loss
      on said policy, the appropriate proceeds as a result of the same shall be
      paid to Landlord and shall be credited against rent due from Tenant on a
      monthly basis for the time the Premises are not tenantable. In the event
      said repairs have not been completed within the period above specified,
      Tenant, at its option (if the damage was not the result of Tenant's
      negligence or the wilful act of Tenant and/or its agents, employees, and
      subcontractors), which must be exercised in writing within ten (10) days
      from the expiration of the time period specified and prior to completion
      of construction, may terminate this Lease. If either Landlord or Tenant
      terminates this Lease as provided in this section, any monies due and
      owing to Landlord shall be paid by Tenant to the date of the casualty or
      the date Tenant vacates the Premises, whichever is later; and all future
      obligations on the part of both parties hereto shall cease and Landlord
      shall incur no further obligations to Tenant whatsoever from and after
      such termination of this Lease.

            d. Notwithstanding anything to the contrary contained in this
      section, Landlord, at its option, shall not have any obligation whatsoever
      to repair, reconstruct, or restore the Premises when the damage resulting
      from any casualty occurs during the last twelve (12) months of the term of
      this Lease or any extension thereof.

                                      -9-

<PAGE>

            e. The parties hereto waive the provisions of any statute which
      relate to termination of leases when leased property is destroyed and
      agree that such event shall be governed by the terms of this Lease.

            f. Notwithstanding anything to the contrary contained in this
      section, Tenant, as long as Tenant is not in default, may, in the event
      Landlord elects to terminate the Lease pursuant to this section, at its
      option, within twenty (20) days of termination, elect to purchase the
      Premises in accordance with Section 34 of this Lease. In such event, all
      proceeds or payments from any Insurance required to be carried under the
      terms of this Lease shall be paid to Tenant at closing, other than rental
      interruption insurance.

      14. CONDEMNATION OF PREMISES.

            a. If the entire Premises, at any time during the term of this Lease
      or any extension thereof, shall be taken by the exercise of a power of
      eminent domain, this Lease shall then terminate as of the date of title
      vesting in such proceeding, all rentals shall be paid up to that date, and
      Tenant shall have no claim against Landlord or the condemning authority
      for the value of the unexpired term of this Lease.

            b. In the event of a taking of more than twenty-five (25%) percent
      of the Building or the Premises which renders the Premises or Building
      unfit for the normal and proper conduct of the business of Tenant, Tenant
      shall have the right to cancel and terminate this Lease effective upon the
      actual taking. Tenant must exercise such option to terminate no later than
      thirty (30) days after such partial taking. All rentals shall be paid up
      to that date, and Tenant shall have no claim against Landlord or the
      condemning authority for the value of any unexpired term of this Lease. If
      this Lease shall not be canceled as above provided, it shall continue in
      effect; and the rental after such partial taking shall be that part of the
      rental herein agreed to be paid which the value of the untaken part of the
      Premises, immediately after the taking, bears to the value of the entire
      Premises immediately before the taking. If Tenant's continued use of the
      Premises requires alterations and repairs by reason of a partial taking,
      Landlord may elect to terminate this Lease within thirty (30) days after
      the actual taking or, subject to Tenant's right of termination above
      provided, may elect to continue this Lease, in which event Landlord shall
      make all necessary alterations and repairs at its expense which are
      required because of such partial taking. Until such alterations and
      repairs are completed, an equitable abatement of rent shall be made to
      Tenant for any portion of the Premises unfit for occupancy and use in the
      conduct of Tenant's business or inaccessible for the period during which
      same is unfit for such occupancy and use or inaccessible.

            c. In the event of any condemnation or taking as aforesaid, whether
      whole or partial, Tenant shall not be entitled to any part of the award
      paid for such condemnation, Tenant hereby expressly waiving any right or
      claim to any part thereof. Although all such damages awarded in the event
      of any condemnation are to belong to Landlord, whether such damages are
      awarded as compensation for diminution in value of the leasehold or to the
      fee of the Premises, Tenant shall have the right to claim and recover from
      the condemning authority, but not from Landlord, such compensation as may
      be separately awarded or recoverable by Tenant in Tenant's own right on
      account of any and all damage to Tenant's business by reason of the
      condemnation and for or on account of any cost or loss to which Tenant
      might be put in removing Tenant's merchandise, furniture, fixtures,
      leasehold improvements, and equipment.

            d. Notwithstanding anything to the contrary contained in this
      section, Tenant may, in the event any full taking contemplated by this
      section occurs, at its option, elect to purchase the Premises in
      accordance with Section 34 of this Lease; and Tenant shall be

                                     -10-

<PAGE>

      entitled to the whole of any award paid for such condemnation or taking up
      to the amount of the purchase price.

      15. ENTRY BY LANDLORD. Subject to Tenant's security and safety
requirements, Landlord reserves, and shall have, the right to enter the Premises
to inspect or to exhibit the Premises to prospective lenders, purchasers, or
tenants; to post notices of non-responsibility; to post signs; to make repairs
to the Premises or the Building that Landlord may reasonably deem necessary,
without abatement of rent, and may for that purpose erect scaffolding and other
necessary structures where reasonably required by the character of the work to
be performed, always providing that the entrances to the Premises, including all
loading docks, shall not be unreasonably blocked thereby and further providing
that the business of Tenant shall not be unreasonably impeded or disrupted. In
the event of an emergency, Landlord shall have the right to use any and all
reasonable means which Landlord may deem proper to open doors or gates in order
to obtain entry to the Premises or the Building without liability to Tenant.

      16. ASSIGNMENT AND SUBLETTING. Tenant shall not assign, transfer,
mortgage, pledge, hypothecate, or encumber this Lease or any interest therein
and shall not sublet the Premises or any part thereof, or any right or privilege
appurtenant thereof, or allow any person (excepting the employees, agents,
servants, licensees, and invitees of Tenant) to occupy or use the Premises or
any portion thereof, or change the use of the Premises without the prior written
consent of the Landlord, which consent will not be unreasonably withheld. A
consent to one assignment, subletting, occupation, or use by another person
shall not be deemed to be a consent to any subsequent assignment, subletting,
occupation, or use by another person. Consent to any such assignment or
subletting shall not relieve Tenant of any liability under this Lease. Any such
assignment or subletting without Landlord's consent shall be void.

      Notwithstanding the foregoing, Tenant may assign this Lease or enter into
a sublease without the consent of Landlord if such assignment or sublease is to
a successor entity and part of the sale of all or a substantial portion of the
assets or controlling interest in the securities of the Tenant, the sale of the
pertinent operational division of the Tenant, merger or other corporate
reorganization, or transfer to an affiliated company, provided such assignment
or sublease is for the continued use of the Leased Premises for the purpose set
forth herein and Tenant shall not be released.

      17. HOLDING OVER. Should Tenant, or any of its successors in interest,
hold over the Premises, or any part thereof, after the expiration of the term of
this Lease and any renewals and extensions thereof, unless otherwise
specifically agreed in writing signed by both parties, such holding over shall
constitute and be construed as a tenancy from month to month only, subject to
all conditions and obligations required to be performed by the Landlord and
Tenant hereunder; provided, however, if Tenant holds over without the express
written consent of Landlord, all forms of Rent shall be payable at a monthly
rate equal to one and one-quarter times the Rent during the last month of the
term of this Lease.

      18. DEFAULT.

             a. DEFAULT OF TENANT AND REMEDIES OF LANDLORD:

                   (1) Tenant shall be in default of this Lease if any of the
              following events occur:

                   (a) The failure of Tenant to make payment of any rent or
               other sums required to be paid by Tenant under this Lease when
               and as the same shall become due and payable and such failure
               continues for five (5) days after Tenant's receipt of notice of
               such failure ;

                                     -11-

<PAGE>

                        (b) The failure of Tenant to comply with any of the
                  covenants, agreements, terms or conditions contained in this
                  Lease other than those referred to in the foregoing Section
                  18.a.(1)(a), provided such default continues for a period of
                  twenty (20) days after written notice thereof from Landlord is
                  received by Tenant; provided further that Tenant's time to
                  cure such default shall be extended for such additional time
                  as shall be reasonably required for the purpose if Tenant
                  shall proceed with due diligence during such twenty- (20) day
                  period to cure such default and is unable by reason of the
                  nature of the work involved to cure the same within said
                  twenty (20) days;

                        (c) If (i) a petition is filed against Tenant seeking a
                  bankruptcy reorganization, arrangement, composition,
                  readjustment, liquidation, dissolution, or similar relief
                  under any present or future federal, state, or other statute,
                  law, or regulation and remains undismissed for an aggregate of
                  ninety (90) days; or (ii) any trustee, receiver, or liquidator
                  of Tenant or of all or any substantial part of Tenant's
                  properties or the Premises shall be appointed without the
                  consent or acquiescence of Tenant and such appointment remains
                  unvacated for an aggregate of ninety (90) days; or

                        (d) If Tenant vacates or abandons the Premises for a
                  period of thirty (30) consecutive days during the term hereof
                  without payment of rent.

                  (2) If Tenant is in default as provided in sub-paragraphs
            (1)(a), (b), (c), or (d) above or elsewhere, Landlord shall have the
            option, without further notice to Tenant or further demand for
            performance:

                        (a) to (i) institute suit against Tenant to collect each
                  installment of rent or other sum as it becomes due; or (ii)
                  accelerate the rental due for the balance of the term of this
                  Lease and sue for and collect the full amount of such future
                  rentals (discounted to date of judgment, with interest at
                  eight percent (8%)); and (iii) enforce any other obligation of
                  Tenant under this Lease;

                        (b) as a matter of right, to procure the appointment of
                  a receiver by any Court of competent jurisdiction upon
                  application and with notice to Tenant. All rents, issues, and
                  profits, income, and revenue from the Premises shall be
                  applied by such receiver to the payment of the rent, together
                  with any other obligations of Tenant under this Lease; or

                        (c) to re-enter and take possession of the Premises and
                  to remove Tenant and Tenant's agents and employees therefrom,
                  and either:

                              (i) Terminate this Lease and sue Tenant for
                        damages for breach of the obligations of Tenant under
                        this Lease; or

                              (ii) Without terminating this Lease, to relet,
                        assign, or sublet the Premises as the agent and for the
                        account of Tenant in the name of Landlord or otherwise,
                        upon the best terms and conditions Landlord may make
                        with the new tenant for such term or terms (which may be
                        greater or less than the period which would otherwise
                        have constituted the balance of the term of this Lease)
                        and on such conditions as Landlord, in its reasonable
                        discretion, may determine,

                                     -12-

<PAGE>

                        and to collect the rent therefor; provided Landlord
                        shall in no way be responsible or liable for any failure
                        to relet the Premises or any part thereof or for any
                        failure to collect any rent due upon any such reletting.
                        In this event, the rents received on any such reletting
                        shall be applied first to the reasonable expenses of
                        reletting, including (without limitation) all
                        repossession costs, reasonable attorneys' fees, and any
                        real estate commission paid, reasonable alteration
                        costs, and reasonable expenses of preparing the Premises
                        for reletting, and thereafter toward payment of the
                        rental and of any other amounts payable by Tenant under
                        this Lease. If the sum realized shall not be sufficient
                        to pay such rent and other charges attributable to
                        Tenant under this Lease, within five (5) days after
                        demand, Tenant will pay to Landlord any such deficiency
                        as it accrues. Landlord may sue Tenant therefor as each
                        deficiency shall arise if Tenant shall fail to pay such
                        deficiency within said time allowed.

                  (3) In the event Landlord elects to re-enter or take
            possession of the Premises, Tenant shall quit and peaceably
            surrender the Premises to Landlord, and Landlord may enter upon and
            re-enter the Premises and possess and repossess itself thereof and
            may dispossess Tenant and remove Tenant and may have, hold, and
            enjoy the Premises and the right to receive all rental income of and
            from the same.

                  (4) No such re-entry or taking of possession by Landlord shall
            be construed as an election on Landlord's part to terminate or
            surrender this Lease or to prefer one form of action unless a
            written notice of such intention is served on Tenant.

                  (5) Notwithstanding any other provision, any amounts due from
            Tenant or to Landlord shall bear interest at one and one-half
            percent (1-1/2%) per month, compounded monthly.

                  (6) If either party shall at any time be adjudged in default
            hereunder, or if either party incurs any expense in connection with
            any action or proceeding instituted by either party reasonably
            necessary to protect, enforce or defend its rights under this Lease,
            and if the other party shall deem it necessary to engage attorneys
            to enforce its rights hereunder, then the prevailing party will be
            reimbursed by the other party for the reasonable expenses incurred
            thereby, including, but not limited to, courts costs and reasonable
            attorneys' fees. These fees and costs will be due if and when a
            final judgment or court order shall be obtained confirming or
            declaring that such party has committed an event or act of default
            under this Lease.

            b. DEFAULT OF LANDLORD AND REMEDIES OF TENANT:

                  (1) Landlord shall be in default of this Lease if any of the
            following events occur:

                        (a) The failure of Landlord to make payment of any sums
                  required to be paid by Landlord under this Lease when and as
                  the same shall become due and payable and such failure
                  continues for twenty (20) days after Landlord's receipt of
                  written notice of such failure.

                        (b) The failure of Landlord to comply with any of the
                  covenants, agreements, terms, or conditions contained in this
                  Lease other than those

                                     -13-

<PAGE>

                  referred to in the foregoing Section 18.b.(1)(a), provided
                  such default continues for a period of twenty (20) days after
                  written notice thereof from Tenant is received by Landlord;
                  provided further that Landlord's time to cure such default
                  shall be extended for such additional time as shall be
                  reasonably required for the purpose if Landlord shall proceed
                  with due diligence during such twenty- (20) day period to cure
                  such default and is unable by reason of the nature of the work
                  involved to cure the same within said twenty (20) days.

                  (2) If Landlord is in material default after notice and right
            to cure as provided above, Tenant, at its election and after further
            written notice and if no cure is effected within ten (10) days
            thereafter, may terminate this Lease but waives the right to recover
            from Landlord damages, costs, and expenses, including reasonable
            attorneys' fees and court costs, arising from or caused by
            Landlord's default; or, Tenant may continue this Lease without
            termination and nonetheless recover from Landlord all such damages,
            costs, and expenses, including reasonable attorneys' fees and court
            costs, incurred as a result of such default (but not to exceed an
            amount equal to twelve (12) months' rent).

                  (3) Any amounts due from Landlord or to Tenant shall bear
            interest at one and one-half percent (1-1/2%) per month, compounded
            monthly.

      c. GENERAL PROVISIONS UPON DEFAULT:

                  (1) The enumeration of the foregoing remedies of Landlord does
            not exclude any other remedy of Landlord, but all remedies of
            Landlord are cumulative and shall be in addition to every other
            remedy now or hereafter existing at law or in equity.

                  (2) No failure by either party to insist upon the strict
            performance of any covenant, agreement, term, or condition of this
            Lease or to exercise any right or remedy consequent upon a breach
            thereof, and no acceptance of full or partial rent during the
            continuance of any such breach, shall constitute a waiver of any
            such breach or of such covenant, agreement, term, or condition. No
            covenant, agreement, term, or condition of this Lease to be
            performed or complied with by either party, and no breach thereof,
            shall be waived, altered, modified, or terminated except by written
            instrument executed by either party. No waiver of any breach shall
            affect or alter this Lease, but each and every covenant, agreement,
            term, and condition of this Lease shall continue in full force and
            effect with respect to any other then existing or subsequent breach
            thereof.

                  (3) No restriction, condition, or other form of limitation on
            or accompanying any check or other form of payment to Landlord shall
            limit (i) Landlord's right to insist upon the strict performance of
            every covenant, agreement, term, and condition of this Lease or (ii)
            Landlord's right to exercise every right and remedy consequent upon
            a breach hereof. Tenant agrees that Landlord may strike and
            disregard any such restriction, condition, or other form of
            limitation and retain such payment without being deemed to have
            agreed, explicitly or implicitly, to such restriction, condition, or
            other form of limitation and without being deemed to have been
            unjustly enriched, provided the amount of cash or its equivalent
            actually received by Landlord is applied toward any amounts payable
            by Tenant under this Lease.

                  (4) No restriction, condition, or other form of limitation on
            or accompanying any check or other form of payment to Tenant shall
            limit (i) Tenant's right to insist

                                     -14-

<PAGE>

            upon the strict performance of every covenant, agreement, term, and
            condition of this Lease or (ii) Tenant's right to exercise every
            right and remedy consequent upon a breach hereof. Landlord agrees
            that Tenant may strike and disregard any such restriction,
            condition, or other form of limitation and retain such payment
            without being deemed to have agreed, explicitly or implicitly, to
            such restriction, condition, or other form of limitation and without
            being deemed to have been unjustly enriched, provided the amount of
            cash or its equivalent actually received by Tenant is applied toward
            any amounts payable by Landlord under this Lease.

      19. QUIET ENJOYMENT. Landlord represents and warrants that it has granted
no mortgage on the Premises and that Landlord is the owner of the Premises and
Building, free and clear of all liens and encumbrances, to the best of its
knowledge, and subject to all other matters of record, including those set forth
on Exhibit D. Landlord makes no other warranties, express or implied. Landlord
covenants that if, and so long as, Tenant pays all forms of Rent herein provided
and performs the covenants hereof, Landlord shall do nothing to affect Tenant's
right to peaceably and quietly have, hold, and enjoy the Premises for the term
herein mentioned, subject to the provisions of this Lease. Tenant accepts the
Premises in its existing condition, after thorough inspection, subject to all
zoning ordinances and regulations pertaining to the Premises, without
responsibility or warranty by Lessor; and further Tenant accepts the Premises
subject to easements, rights-of-way, restrictive covenants, and reservations of
record. The Premises have been inspected thoroughly by Tenant and Tenant's
independent inspectors prior to executing this Lease, and the Premises have been
found by Tenant to be satisfactory for Tenant's intended use. Tenant agrees to
accept the Premises in its as-is condition and rely on its own investigation.

      20. AS-IS. Tenant hereby acknowledges, certifies, warrants, represents,
and agrees, in connection with the lease of the Premises, that it has thoroughly
examined and studied the Premises and all aspects thereof and has performed
examinations and investigations of the Premises, including, specifically but
without limitation, examinations and investigations for the presence of
hazardous substances, materials, or wastes (as those terms may be defined by
applicable federal or state law, rule, or regulation) on the Premises. Tenant
warrants, represents, and agrees that it is sophisticated and knowledgeable and
that it has relied solely upon its own investigation. Notwithstanding anything
to the contrary herein, it is expressly understood and agreed that Tenant leases
(and if it buys, buys) the Premises "as-is" and "where-is" and with all faults
and problems. Except for the specific representations and warranties of Landlord
specifically set forth herein and in writing in this Lease Agreement, if any,
Landlord is making no representations or warranties, whether express or implied
or by operation of law or otherwise, with respect to the Premises or the
quality, physical condition, or value of the Premises, the income from or
expenses of the Premises, or the compliance of the Premises with applicable
building or fire codes or any local, state, or federal laws or regulations.
Without limiting the foregoing, it is understood and agreed that Landlord makes
no warranty of habitability, suitability, merchantability, or fitness for a
particular purpose. Tenant agrees that Landlord is not liable or bound by any
guarantees, promises, statements, representations, or information pertaining to
the Premises made or furnished by Landlord or by any real estate agent, broker,
employee, servant, or other person representing or purporting to represent
Landlord except as and to the extent as specifically set forth in this Lease
Agreement. Tenant hereby releases and discharges Landlord and all Landlord's
members, managers, and agents for any claims, including but not limited to those
based upon warranty or implied warranty. Tenant further acknowledges and agrees
that the compensation to be paid to Landlord is being given subject to the
foregoing disclaimers. This Lease Agreement supersedes and replaces all prior
agreements, warranties, and representations. Tenant also agrees to indemnify and
hold Landlord and all its members, managers, and agents harmless, including
reasonable attorney's fees and costs, in connection with any claims made or
asserted by Tenant or its successors or assigns inconsistent with this
paragraph.

                                     -15-

<PAGE>

      21. ESTOPPEL CERTIFICATE.

            a. Tenant shall, without charge, at any time and from time to time
      hereafter, within twenty (20) days after receipt of a request therefor
      from Landlord, certify by written instrument duly executed and
      acknowledged to any mortgagee or prospective mortgagee of the Premises or
      to any purchaser or prospective purchaser of the Premises as to (i) the
      validity and force and effect of this Lease, in accordance with its tenor,
      as then constituted; (ii) the fact that this Lease is unmodified or, if
      there has been any modification thereof, as to the nature of the
      modification or modifications and the validity and force and effect of
      such modification; (iii) the existence of any default on the part of any
      party hereunder, as to the existence of any offsets, counterclaims, or
      defenses thereto; and (iv) any other matters which may be reasonably
      requested by Landlord. Any statement delivered pursuant to this section
      may be relied upon by any mortgagee or prospective mortgagee of the
      Premises or the fee interest herein or by any purchaser or prospective
      purchaser of the fee interest herein.

            b. Landlord shall, without charge, at any time and from time to time
      hereafter, within twenty (20) days after receipt of a request therefor
      from Tenant, certify by written instrument duly executed and acknowledged
      to any mortgagee or prospective mortgagee of the Premises or to any
      purchaser or prospective purchaser as to (i) the validity and force and
      effect of this Lease, in accordance with its tenor, as then constituted;
      (ii) the fact that this Lease is unmodified or, if there has been any
      modification thereof, as to the nature of the modification or
      modifications and the validity and force and effect of such modification;
      (iii) the existence of any default on the part of any party hereunder, as
      to the existence of any offsets, counterclaims, or defenses thereto; and
      (iv) any other matters which may be reasonably requested by Tenant. Any
      statement delivered pursuant to this section may be relied upon by any
      mortgagee or prospective mortgagee of the Premises or the fee interest
      herein or by any purchaser or prospective purchaser.

      22. SUBORDINATION. Tenant agrees that this Lease is and shall be, at all
times, subject and subordinate to the lien of any mortgage, deed of trust,
financing statement, or other security instrument (collectively "Mortgage")
which Landlord or its assigns shall make covering the Premises and to any and
all advances to be made thereunder and to the interest granted thereby;
provided, however, regardless of any default under any Mortgage or any
possession or sale of the Premises under such Mortgage, Tenant shall not be
relieved of its obligations under this Lease; and so long as Tenant performs all
covenants and conditions of this Lease and continues to pay rent to whomever may
be lawfully entitled to same, this Lease and Tenant's possession thereunder
shall not be disturbed by the holder of the Mortgage or anyone claiming under or
through them. Tenant agrees to execute any and all instruments in writing which
may be required by Landlord to subordinate Tenant's right to the lien of such
Mortgage, subject to the terms of this section.

      23. NOTICES. All notices, demands, requests, information, correspondence,
or other documents or instruments required in this Lease to be given by Tenant
to Landlord or Landlord to Tenant shall be in writing, hand delivered or sent by
prepaid certified or registered mail of the United States at the address listed
below or such other place as the parties may designate from time to time by
written notice.

                         Landlord: Meyer Warehouse LLC
                                   c/o Richard Meyer III
                                   211 East York Street
                                   Savannah, Georgia 31401

                                     -16-

<PAGE>

            Copy to: Phillip C. Gans, Esq.
                     Phillip C. Gans, P.C.
                     2600 Colorado State Bank Building
                     1600 Broadway
                     Denver, Colorado 80202-4989

            and to: Attorney Dolly Chisholm
                    Inglesby, Falligant, Horn, Courington & Chisholm, P.C.
                    17 West McDonough Street
                    Savannah, Georgia 31401-3949

            Tenant: Citi Trends, Inc.
                    ATTN: REAL ESTATE DEPARTMENT
                    102 Fahm Street
                    Savannah, Georgia 31401

            Copy to:

      24. AUTHORITY OF PARTIES. Each individual executing this Lease on behalf
of its principal represents and warrants that he is duly authorized to execute
and deliver this Lease on behalf of said party.

      25. LEASING COMMISSIONS OR BROKERAGE FEES. Landlord and Tenant warrant and
represent to one another that they have not engaged any real estate broker or
agent in connection with this Lease or its negotiation other than Clifford H.
Dales and John Neely of Neely/Dales, LLC and that all Leasing Commissions or
Brokerage Fees payable to Nelly/Dales, LLC will be paid by Landlord pursuant to
the written agreement dated February 9, 2004 (the "Exclusive Right to Lease").
Neeley/Dales, LLC represents the Landlord.

      26. LATE CHARGES. Tenant hereby acknowledges that late payment by Tenant
to Landlord of rent and other sums due hereunder may cause Landlord to incur
costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges and late charges which may be imposed on
Landlord by the terms of any mortgage or trust deed covering the Premises.
Accordingly, if any installment of rent or any other sum due from Tenant shall
not be received by Landlord or Landlord's agent within five (5) days after such
amount shall be due, without any requirement for notice to Tenant, Tenant shall
pay to Landlord a late charge equal to ten percent (10%) of such overdue amount.
The parties hereby agree that such late charge represents a fair and reasonable
estimate of the costs Landlord will incur by reason of late payment by Tenant.
Acceptance of such late charge by Landlord shall in no event constitute a waiver
of Tenant's default with respect to such overdue amount nor prevent Landlord
from exercising any of the other rights and remedies granted hereunder.
Notwithstanding the foregoing, the late fee shall not be charged for the first
late payment in any Lease term period as long as such payment is made within
fifteen (15) days after written notice) but shall be charged for all late
payments thereafter.

      27. INTEREST ON PAST-DUE OBLIGATIONS. Notwithstanding any other provision,
any amount due to Landlord or Tenant not paid when due shall bear interest at
the lower of the rate of one and one-half percent (1-1/2%) per month, compounded
monthly, or the highest rate allowed under Georgia law from the date due.
Payment of such interest shall not excuse or cure any default by

                                     -17-

<PAGE>

Tenant under this Lease; provided, however, interest shall not be payable on
late charges incurred by Tenant nor on any amounts upon which late charges are
paid by Tenant.

      28. RULES AND REGULATIONS. Tenant agrees that it will abide by, keep, and
observe all reasonable rules and regulations which are attached hereto and
incorporated herein by reference as Exhibit C for the management, safety, care,
and cleanliness of the Building and grounds; the parking of vehicles; and the
preservation of good order therein. Any violations of such rules and regulations
shall be deemed a material breach of this Lease by Tenant.

      29. SECURITY MEASURES. Tenant hereby acknowledges that the rental payable
to Landlord hereunder does not include the cost of guard service or other
security measures and that Landlord shall have no obligation whatsoever to
provide the same. Tenant assumes all responsibility for the protection of Tenant
and its agents and invitees from acts of third parties.

      30. TENANT'S RESPONSIBILITY REGARDING HAZARDOUS SUBSTANCES.

            a. HAZARDOUS SUBSTANCES. The term "Hazardous Substances," as used in
      this Lease, shall include, without limitation, flammables, explosives,
      radioactive materials, asbestos, polychlorinated biphenyls (PCBs),
      chemicals known to cause cancer or reproductive toxicity, pollutants,
      contaminants, hazardous wastes, toxic substances or related materials,
      petroleum and petroleum products (not to include propane or natural gas),
      and substances declared to be hazardous or toxic under the Comprehensive
      Environmental Response, Compensation and Liability Act of 1980, as
      amended, 42 USC Section 9601, et seq.; the Resource Conservation and
      Recovery Act, as amended, 42 USC Section 6901, et seq.; any state or local
      laws and any regulations adopted under those acts; or any law or
      regulation now or hereafter enacted or promulgated by any governmental
      authority.

            b. TENANT'S RESTRICTIONS. Tenant shall not cause or permit to occur:

                  (1) Any violation of any federal, state, or local law,
            ordinance, or regulation, now or hereafter enacted, related to
            environmental conditions on, under, or about the Premises or arising
            from Tenant's use or occupancy of the Premises, including but not
            limited to air, soil, and ground water conditions; or

                  (2) The use, generation, release, manufacture, refining,
            production, processing, storage, or disposal of any Hazardous
            Substance in excess of legal limits on, under, or about the Premises
            or the transportation to or from the Premises of any Hazardous
            Substance, except the use and storage of petroleum and petroleum
            products.

            c. ENVIRONMENTAL CLEAN-UP.

                  (1) Tenant shall, at Tenant's own expense, comply with all
            laws regulating the use, generation, storage, transportation, or
            disposal of Hazardous Substances ("Laws").

                  (2) Tenant shall, at Tenant's own expense, make all
            submissions to, provide all information required by, and comply with
            all requirements of all governmental authorities (the "Authorities")
            under the Laws.

                  (3) Should any Authority or any third party demand that a
            clean-up plan be prepared and that a clean-up be undertaken because
            of any deposit, spill, discharge, or other release of Hazardous
            Substances that occurs during the term of this Lease,

                                     -18-

<PAGE>

            at or from the Premises, or which arises at any time from Tenant's
            use or occupancy of the Premises, Tenant shall, at Tenant's own
            expense, prepare and submit the required plans and all related bonds
            and other financial assurances; and Tenant shall carry out all such
            clean-up plans.

                  (4) Tenant shall promptly provide all information regarding
            the use, generation, storage, transportation, or disposal of
            Hazardous Substances that is requested by Landlord. If Tenant fails
            to fulfill any duty imposed under this section within a reasonable
            time, Landlord may do so; and in such case, Tenant shall cooperate
            with Landlord in order to prepare all documents Landlord deems
            necessary or appropriate to determine the applicability of the Laws
            to the Premises and Tenant's use thereof, and for compliance
            therewith; and Tenant shall execute all documents promptly upon
            Landlord's request. No such action by Landlord and no attempt made
            by Landlord to mitigate damages under any Law shall constitute a
            waiver of any of Tenant's obligations under this section.

                  (5) Landlord's and Tenant's obligations and liabilities under
            this section shall survive the expiration of this Lease.

            d. TENANT'S INDEMNITY.

                  (1) Tenant shall indemnify, defend, and hold harmless
            Landlord, any manager of the property, and their respective
            officers, directors, beneficiaries, shareholders, partners, agents,
            and employees from any and all fines, suits, proceedings, claims,
            and actions of every kind and all costs associated therewith
            (including, without limitation, attorneys' and consultants' fees)
            arising out of or in any way connected with any deposit, spill,
            discharge, or other release of Hazardous Substances that occurs
            during the term of this Lease, at or from the Premises, or which
            arises at any time from Tenant's use or occupancy of the Premises or
            from Tenant's failure to provide all information, make all
            submissions, and take all steps required by all Authorities under
            the Laws and all other environmental laws.

                  (2) Tenant's obligations and liabilities under this section
            shall survive the expiration or termination of this Lease.

      31. EASEMENTS AND COVENANTS. The Premises are subject to easements and
covenants of record, including but not limited to those contained in the
instruments described on the attached Exhibit D. Tenant shall not violate said
easements and covenants or take any action, or fail to take any action, that
causes or results in a violation of said easements and covenants.

      32. LANDLORD'S LIABILITY. The term "Landlord" as used herein shall mean
only the owner or owners, at the time in question, of the fee title of the
Premises; and in the event of any transfer of such title or interest, Landlord
herein named (and in case of any subsequent transfers, then the grantor) shall
be relieved from and after the date of such transfer of all liability as
respects Landlord's obligations thereafter to be performed; provided, however,
any funds in the hands of Landlord or the then grantor at the time of such
transfer in which Tenant has an interest shall be delivered to the grantee. The
obligations contained in this Lease to be performed by Landlord shall, subject
as aforesaid, be binding on Landlord's successors and assigns, only during their
respective periods of ownership.

      33. FAIR DEALING; CONSENTS; ASSIGNMENT. In connection with the performance
of their respective obligations under this Lease, Landlord and Tenant shall act
in good faith and in a commercially reasonable manner.

                                     -19-

<PAGE>

      34. PURCHASE OPTION. In consideration of this Lease, Tenant shall have the
option (the "Purchase Option") to purchase the Premises described on Exhibit A
attached hereto (collectively the "Demised Premises") for the sum of Two Million
Six Hundred Thousand Dollars ($2,600,000), payable in good funds (with no credit
for any rental amounts). Notwithstanding the foregoing, the option price of
$2,600,000 shall be increased by any amounts Landlord has had to pay or has paid
for maintenance or repairs under this Lease or otherwise from the time of Lease
signing (the "Price"). Tenant's rights to exercise this option after notice of
exercise shall cease if Tenant materially breaches this Lease. As long as Tenant
is not in default hereunder beyond any applicable cure periods and as long as
this Lease is in effect, such Purchase Option may be exercised in writing by
Tenant (the "Optionee"). This Purchase Option may be exercised at any time up to
ninety (90) days prior to the expiration of any terms or extensions (the "Option
Date"). It cannot be exercised after ninety (90) days prior to Lease expiration.
If the Purchase Option is exercised, Landlord shall convey by special warranty
deed, subject to all matters of record, Landlord's interest in the real estate,
to the extent owned by Landlord; and it shall be a condition of the sale that
title to the real estate shall, except as provided herein below, be free from
all tenancies (except Tenant) and occupants (except Tenant). The sale shall
occur within one hundred twenty (120) days of the Option Date. In the exercise
of such option, all monies shall be placed with a title company, as escrowee, of
Optionee's designation; and the settlement of the purchase price and the
conveyance to Optionee shall take place in escrow. At closing, Tenant will
secure and pay for its own owner's policy, issued by a title insurance company
licensed in the State of Georgia in its usual form, brought down to the date of
closing, insuring Optionee against loss or damage to the extent of the purchase
price by reason of defects in or liens upon Landlord's title. Taxes, utilities,
rents, and other current expenses shall be paid by Tenant. Tenant shall pay all
the costs of the transaction, including but not limited to the cost of the
policy, recording fees, escrow fees, documentary transfer taxes, and sales and
use taxes. The Demised Premises will be sold in its as-is condition, without any
representation or warranty of Landlord. Seller will be responsible for paying a
commission of $100,000 to Neely/Dales, LLC, payable only if the transaction
closes. Time is of the essence.

      Notwithstanding the foregoing, if Tenant purchases the Property pursuant
to this clause at any time after the first extended term, the Price shall
increase by the greater of (a) ten percent (10%) or (b) an amount based upon the
Consumer Price Index. The index used shall be the Consumer Price Index for
Savannah, Georgia, if available, or the area selected by Landlord near Savannah,
Georgia. The amount shall be the Annual Base Rent multiplied by a fraction, the
denominator (top) of which is the Consumer Price Index for the month which is
six (6) months prior to closing and the numerator (bottom) of which is the same
Consumer Price Index for the month which is six (6) months prior to the date of
the initial term of this Lease. The real estate commission shall not change.

      35. GENERAL PROVISIONS.

            a. LEGAL COSTS AND EXPENSES. Landlord shall recover from Tenant all
      costs and expenses, including reasonable attorneys' fees, in any court
      action brought to recover any rent or other sums due and unpaid under the
      terms hereof, or for the breach of any of the terms and conditions herein
      contained, or to recover possession of the Premises, whether or not such
      court action shall proceed to judgment if Landlord is the prevailing
      party.

            b. SEVERABILITY OF PROVISIONS. If any clause or provision of this
      Lease is illegal, invalid, or unenforceable under present or future laws
      effective during the term of this Lease, then and in that event, it is the
      intention of the parties hereto that the remainder of this Lease shall not
      be affected thereby; and it is also the intention of the parties to this
      Lease that if any clause or provision is illegal, invalid, or
      unenforceable, there be added as a part of this Lease

                                     -20-

<PAGE>

      a clause or provision as similar in terms to such illegal, invalid, or
      unenforceable clause or provision as may be possible and be legal, valid,
      and enforceable.

            c. RIGHT-OF-WAY. Landlord reserves the right, with Tenant's prior
      written approval and consent, which approval and consent will not be
      unreasonably or untimely withheld, to grant or devise rights-of-way,
      easements, and rights of passage solely for utility and over, on, under,
      and to the Premises; provided, however, such grant shall not unreasonably
      interfere with Tenant's use and occupancy of the Premises. Tenant shall be
      given reasonable advance written notice prior to the start of any
      construction work in connection with such grant.

            d. ANIMALS. Tenant shall not be permitted to keep any animals in or
      about the Premises.

            e. AUCTIONS. Tenant shall not conduct or permit to be conducted any
      sale by auction in, upon, or from the Premises, whether said auction be
      voluntary or involuntary pursuant to any assignment for the benefit of
      credits or pursuant to any bankruptcy or insolvency proceedings.

            f. DEFINITION OF TERMS. Whenever the words "Landlord" and "Tenant"
      are used in this Lease, they are applied to persons, both men and women,
      companies, partnerships, and corporations; and in reading this Lease, the
      necessary grammatical changes of words required to make the provisions
      hereof mean and apply as aforesaid shall be made in the same manner as if
      written into this Lease.

            g. MARGINAL HEADINGS. The marginal headings and section titles to
      the sections of this Lease are not a part of this Lease and shall have no
      effect upon the construction or interpretation of any part hereof.

            h. PRIOR AGREEMENT AND AMENDMENTS. This Lease and a side letter
      dated September 29, 2004, contain all the agreements, warranties, and
      representations of the parties hereto with respect to any matter covered
      or mentioned in this Lease; and no prior agreements or understandings
      pertaining to any such matters shall be effective for any purpose. No
      warranties or representations of Landlord, verbal or in writing, not
      contained in an agreement shall be binding upon Landlord unless contained
      herein or in certain related agreements in writing. No provision of this
      Lease may be amended or added to except by an agreement in writing signed
      by the parties hereto or their respective successors in interest. This
      Lease shall not be effective or binding on any party until fully executed
      by both parties hereto.

            i. SUCCESSORS AND ASSIGNS. The obligations and rights under this
      Lease shall be binding upon and inure to the benefit of the heirs,
      administrators, executors, personal representatives, successors, and
      permitted assigns of the parties. Any assignment or subletting by Tenant
      in violation of the terms of this Lease shall not vest any rights
      whatsoever in the assignee or subtenant but will be a breach of this
      Lease.

            j. TIME. Time is of the essence of this Lease and each and all of
      its provisions in which performance is a factor.

            k. SHORT FORM LEASE. The parties agree, at the request of either of
      them, to execute a Short Form Lease for recording, containing the names of
      the parties, the legal description of the Premises, and the term of the
      Lease and the cost of recording will be paid

                                     -21-

<PAGE>

      by the party requesting such recording. Landlord and Tenant agree to
      execute any releases requested by the other upon termination.

            l. LAW GOVERNING. This Lease shall be construed and enforced in
      accordance with the laws of the State of Georgia. The parties hereto
      mutually consent to waive any right to a trial by jury.

            m. EXPERIENCE. Tenant acknowledges that it is experienced in real
      estate matters; has had the opportunity to be represented by competent
      counsel, familiar with leasing transactions, in the negotiation,
      preparation, and review of this Lease; and that it has reviewed this Lease
      in its entirety before executing it. Landlord has recommended to Tenant to
      secure legal representation. This document has been prepared by Landlord's
      counsel but shall not be interpreted against Landlord.

            n. FURTHER INSTRUMENTS. Each party, at the expense of the other
      party, shall execute, acknowledge, and deliver to the other party such
      instruments and take such other action, in addition to the instruments and
      action provided for herein, as the other party may request in order to
      effectuate the purpose or provisions of this Lease or any transaction
      contemplated herein or to protect or confirm any right created or
      transferred hereunder or pursuant to any such transaction.

            o. RETURN OF THE PREMISES. At the end of the term of this Lease of
      when Tenant departs or upon any Tenant default, Tenant shall return the
      Premises to Landlord in a clean, well-kept order and in good condition,
      normal wear and tear excepted and subject to any events of casualty dealt
      with above.

            p. COUNTERPARTS. This Lease may be executed in any number of
      counterparts, each of which shall constitute an original and all of which,
      when taken together, shall constitute one Lease.

                       [See signatures on following page]

                                     -22-

<PAGE>

      IN WITNESS WHEREOF, this Lease is hereby executed the day and year first
above written, in three (3) counterparts, each of which shall be deemed an
original document.

      LANDLORD:
                                      MEYER WAREHOUSE LLC, a Georgia in
                                      limited liability company:

                                      BY:  /s/ Richard Meyer III
                                           -------------------------------------
                                      Its: MANAGER

      TENANT:
                                      CITI TRENDS, INC., a Delaware corporation:

                                      BY:  /s/ R. Edward Anderson
                                           -------------------------------------
                                      Its: CEO

                                     -23-

<PAGE>

                                   EXHIBIT A

                               LEGAL DESCRIPTION

TRACT ONE: All that certain tract, parcel of land situate, lying and being in
the 8th G.M. District, Chatham County, Georgia, and being known and designated
on a plat as Lot 11, Phase 1, S.P.A. Industrial Park Subdivision as prepared by
Hussey, Gay & Bell, dated November 1977 and recorded in Subdivision Map Book Q,
folio 3, of the Chatham County records. Said lot as a whole being bounded as
follows: On the North by Lot 12, said subdivision and phase; on the East by a 60
foot drainage right-of-way; on the South by Artley Road; and on the West by
Coleman Boulevard. Express reference is hereby made to the above-mentioned plat
for better determining the metes, bounds, and dimensions thereof.

TRACT TWO: All of that certain lot, tract, or parcel of land situate, lying, and
being in the 8th G.M. District, County of Chatham, and State of Georgia, being
known and designated as Lot Twelve (12), Savannah Port Authority Industrial Park
Subdivision, Phase One (1), being a Subdivision of a portion of lands of the
Savannah Port Authority, as shown on a map or plat prepared by Hussey, Gay &
Bell, Consulting Engineers, for Savannah Port Authority recorded in the Office
of the Clerk of the Superior Court of Chatham County, Georgia, in Subdivision
Map Book "Q," Page 3. Express reference is hereby made to said Subdivision Map
for better determining the metes, bounds, and dimensions of the property herein
conveyed.

<PAGE>

                                   EXHIBIT B

                                   SITE PLAN

[SITE PLAN FIGURE]

<PAGE>

                                    EXHIBIT C

                             RULES AND REGULATIONS

      1. Tenant shall not obstruct or interfere with persons performing services
for the Landlord or having business on the Premises and shall not injure or
annoy such persons.

      2. Canvassing, soliciting, and peddling on the Premises are prohibited;
and Tenant shall cooperate to prevent such activities.

      3. Tenant shall not cook or prepare food commercially or place or use any
flammable, combustible, explosive, or hazardous fluid, chemical, device,
substance or material (excepting only propane and natural gas) on the Premises
without the prior written consent of Landlord. Tenant shall comply with the
statutes, ordinances, rules, orders, regulations, and requirements imposed by
governmental or quasi-governmental authorities in connection with fire and panic
safety and fire prevention.

      4. Tenant shall not move or install personal properly or fixtures on the
Premises in such a fashion as to unreasonably increase the risk of injury or
cost of insurance; and all such moving shall be at the sole expense, risk, and
responsibility of Tenant.

      5. Tenant shall not place within the Building any objects which exceed the
floor weight specifications of the Building without the express prior written
consent of Landlord. The placement and positioning of all such objects within
the Building shall be prescribed by Landlord; and such objects shall, in all
cases, be placed upon plates or footings of such size as shall be prescribed by
Landlord.

      6. Tenant shall not deposit any trash, refuse, cigarettes, or other
substances of any kind on the Premises except in the refuse containers provided
therefore. Tenant shall exercise its best efforts to keep the sidewalks,
entrances, passages, courts, lobby areas, garages or parking areas, stairways,
and vestibules on the Premises clean and free from rubbish.

      7. Tenant shall permit no loitering by any persons on the Premises.

      8. Tenant shall not use the washrooms, restrooms, and plumbing fixtures of
the Building and appurtenances thereto for any other purpose than the purposes
for which they were constructed; and Tenant shall not deposit any sweepings,
rubbish, rags, or other improper substances therein. Tenant shall not waste
water by interfering or tampering with the faucets or otherwise.

      9. No signs, awning, showcases, advertising devices, or other projections
or obstructions shall be attached to the outside walls of the Building without
the express prior written consent of Landlord, which shall not unreasonably be
withheld. In the event of the violation without any liability and Tenant shall
reimburse Landlord for the expense incurred in such removal upon demand as
additional Rent under the Lease.

      10. Tenant shall not obstruct or in anyway impair the efficient operation
of the Building's heating, ventilating, air conditioning, electrical, fire,
safety, water, sewer, or lighting systems.

<PAGE>

      11. Access may be had by Tenant to the Premises at any time of the day or
night, seven (7) days a week.

      12. For purposes hereof, the terms "Landlord," "Tenant," "Building," and
"Premises" are defined as those terms are defined in the Lease to which these
Rules and Regulations are attached. Wherever Tenant is obligated under these
Rules and Regulations to do or refrain from doing an act or thing, such
obligation shall include the exercise by Tenant of its best efforts to secure
compliance with such obligation by the servants, employees, contractors,
jobbers, agents, invitees, licensees, guests, and visitors of Tenant.
<PAGE>

                                    EXHIBIT D

                            EASEMENTS AND COVENANTS

1.    County ad valorem taxes and assessments for 2004 and subsequent years.

2.    Any action by a municipal or governmental agency for the purpose of
      regulating the use, occupancy or zoning of the Property, or any building
      or structure thereon.

3.    Unrecorded lien rights, mis-indexed documents, and other matters not
      disclosed by an examination of the public records of Chatham County,
      Georgia.

4.    Easements for public utility services and facilities that serve the
      Properly or the improvements located thereon or are located along or
      within the boundaries of the Property.

5.    Encroachments, overlaps, boundary line disputes, and any other matters
      which would be disclosed by an accurate survey and inspection of the
      premises.

6.    Rights or claims of parties in possession not shown by the public records.

7.    Easements, or claims of easements, not shown by the public records.

8.    Any lien, or right to a lien, for services, labor, or material heretofore
      or hereafter furnished, imposed by law and not shown by the public
      records.

9.    Taxes or special assessments which are not shown as existing liens by the
      public records.

10.   Such state of facts as shown on subdivision plat recorded in Subdivision
      Map Book Q, Page 3, Chatham County Records.

11.   Easement to Savannah Electric and Power Company dated December 22, 1930,
      and recorded in Deed Book 27-K, page 10, of aforesaid records.

12.   Easement from Savannah Port Authority to Chatham County dated August
      20,1976, and recorded in Deed Book 107-H, page 103, Chatham County
      records.

13.   Easement from Savannah Port Authority to Savannah Electric and Power
      Company dated November 29, 1977, and recorded in Deed Book 109-S, page
      534, Chatham County records.

14.   Easement from Savannah Port Authority to Savannah Electric and Power
      Company dated November 23, 1977, and recorded in Deed Book 109-S, page
      535, Chatham County records.

15.   Declaration of Covenants, Conditions, and Restrictions for Phase I,
      Savannah Port Authority Industrial Park Subdivision, dated July 24, 1978
      and recorded in Deed Book 111-C, page 114, Chatham County records; as
      amended by that certain Declaration of Amended Covenants, Conditions, and
      Restrictions for Phase I, Savannah Port Authority Industrial Park
      Subdivision, dated February 27, 1980, and recorded in Deed Book 114-M,
      page 295, aforesaid records; as extended by that certain Extension of
      Declaration of Covenants, Conditions and Restrictions for Phase I,
      Savannah Port Authority Industrial Park

<PAGE>

      Subdivision, dated June 1, 1998, and recorded in Deed Book 193-T, page
      272, aforesaid records.

16.   Rights of First Refusal of Savannah Port Authority contained in that
      certain Warranty Deed from Savannah Port Authority dated November 21,1985,
      and recorded in Deed Book 128- R, page 342, aforesaid records. (Release of
      Rights recorded on October_______, 2004.)

17.   Easement from Frances and Richard Meyer to Savannah Electric and Power
      Company dated June 26, 1986, and recorded in Deed Book 131-X, page 179,
      Chatham County records.

<PAGE>

                                    EXHIBIT E

                           LANDLORD/MORTGAGEE WAIVER

WHEREAS, CONGRESS FINANCIAL CORPORATION (SOUTHWEST) ("Congress") has, or is
about to enter into, certain financing agreements with Citi Trends, Inc.
("Debtor") pursuant to which Congress has been, or may be, granted a security
interest in any or all of Debtor's personal property including, but not limited
to, inventory, equipment, and signage (hereinafter "Personal Property"), but
excluding fixtures; and,

WHEREAS, the Personal Property has or may become located on, wholly or in part,
the certain real estate located at 104 Coleman Boulevard, Savannah, Georgia
31408, the legal description of which is (include metes and bounds, lot and
block, range and section):

      104 Coleman Boulevard, City of Savannah, County of Chatham, State of
Georgia (hereinafter "Premises") and,

WHEREAS, the undersigned has an interest in the Premises as owner, mortgagee or
lessor,

NOW, THEREFORE, in consideration of any financial accommodation extended by
Congress to Debtor, at any time, and other good and valuable considerations,
the undersigned agrees as follows:

      (a) That it waives and relinquishes any landlord's lien, all rights of
levy, security interest or other interest the undersigned may now or hereafter
have in any of the Personal Property whether for rent or otherwise;

      (b) That the Personal Property may be located on the Premises and is not
and shall not be attached or be deemed a fixture or part of the real estate but
shall at all times be considered personal property;

      (c) That it disclaims any interest in the Personal Property (but not
fixtures) and agrees to assert no claim to the Personal Property while Debtor is
indebted to Congress;

      (d) That as long as the Lease on the Premises is in effect and Tenant has
occupancy rights, Congress or its representatives may enter upon the Premises to
inspect or remove the Personal Property in the event that Debtor has not cured a
default beyond any applicable cure period;

      (e) That as long as the Lease on the Premises is in effect and Tenant has
occupancy rights, Congress, at its option, may enter the Premises upon Debtor's
default for the purpose of repossessing, removing, or selling said Personal
Property, and such license shall be irrevocable and shall continue from the date
Congress enters the Premises for as long as Congress deems necessary but not to
exceed a period of sixty (60) days; provided that Congress timely pays rent at
the then current rate stipulated in the lease, which rent shall be pro-rated
for the period of such occupancy.

      (f) That the undersigned does hereby consent to the acquisition by
Congress, at Congress' option, of the absolute ownership of Debtor's interest in
said Lease and does hereby agree that if Congress elects to acquire said
leasehold estate, it will thereupon be recognized as the

<PAGE>

Lessee under said Lease. If Congress shall become such Lessee, it may sublease
or assign said Lease with Landlord's prior written consent, such consent shall
not be unreasonably withheld, for the purpose outlined in the use clause of this
lease, and the assignment of said Lease shall not release and relieve Congress
of any obligations thereunder.

      (g) The undersigned agrees to give notice in writing by certified or
registered mail of any default (beyond any applicable cure period) by Debtor of
any of the provisions of said Lease or the mortgage upon the premises held by
the undersigned, as the case may be, to:

                              CONGRESS FINANCIAL CORPORATION (SOUTHWEST)
                              5001 LBJ Freeway, Suite 1050
                              Dallas, Texas 75244

Upon receipt of said notice, Congress shall thereupon have the right, but not
the obligation, to cure said default within ten (10) days thereafter provided
timely notice has been given to Congress by the undersigned. Any payment made or
act done by Congress to cure any such default shall not constitute an assumption
of the Lease or any obligations of Debtor.

This waiver may not be changed or terminated orally and is binding upon the
undersigned and their heirs, personal representatives, successors and assigns of
the undersigned and inures to the benefit of Congress and the successors and
assigns of Congress.

      Dated this 30th day of September 2004.

Witnessed By:                               MEYER WAREHOUSE, LLC
                                                ("LANDLORD")

/s/ Clifford H. [illegible]                 By: /s/ Richard Meyer, III
---------------------------                     --------------------------------
                                                Landlord-Mortgagee (signature)

                                                Richard Meyer, III, Manager
___________________________                     --------------------------------
                                                (printed name)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]