Exhibit 10.10 PROMISSORY NOTE================================================================================BORROWER: Citi Trends, Inc. LENDER: Bank of America, N.A. 102 Fahm Street CCS-Commercial Banking Savannah, GA 31401 FL9-100-03-15 600 Peachtree St. NE Atlanta, GA 30308================================================================================PRINCIPAL AMOUNT: $3,000,000.00 DATE OF NOTE: JUNE 21,2004PROMISE TO PAY. Citi Trends, Inc. (“Borrower”) promises to pay to Bank ofAmerica, N.A. (“Lender”), or order, in lawful money of the United States ofAmerica, the principal amount of Three Million & 00/100 Dollars ($3,000,000.00)or so much as may be outstanding, together with interest on the unpaidoutstanding principal balance of each advance. Interest shall be calculated fromthe date of each advance until repayment of each advance.PAYMENT. Borrower will pay this loan in one payment of all outstanding principalplus all accrued unpaid interest on June 30, 2005. In addition, Borrower willpay regular monthly payments of all accrued unpaid interest due as of eachpayment date, beginning July 26,2004, with all subsequent interest payments tobe due on the same day of each month after that. Unless otherwise agreed orrequired by applicable law, payments will be applied first to any accrued unpaidinterest; then to principal; then to any late charges; and then to any unpaidcollection costs. The annual interest rate for this Note is computed on a365/360 basis; that is, by applying the ratio of the annual interest rate over ayear of 360 days, multiplied by the outstanding principal balance, multiplied bythe actual number of days the principal balance is outstanding. Borrower willpay Lender at Lender’s address shown above or at such other place as Lender maydesignate in writing.VARIABLE INTEREST RATE. The interest rate on this Note is subject to change fromtime to time based on changes in an independent index which is the “LIBOR DailyFloating Rate” which is the fluctuating rate of interest (rounded upwards, ifnecessary to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or anysuccessor page) as the 1 month London interbank offered rate for deposits inUnited States Dollars at approximately 11:00 a.m. (London time) on the secondpreceding business day, as adjusted from time to time in Lender’s solediscretion for then-applicable reserve requirements, deposit insuranceassessment rates and other regulatory costs; if for any reason such rate is notavailable, the term “LIBOR Daily Floating Rate” shall mean the fluctuating rateof interest equal to the rate of interest (rounded upwards, if necessary to thenearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the 1 month Londoninterbank offered rate for deposits in United States Dollars at approximately11:00 a.m. (London time) on the second preceding day, as adjusted from time totime in Lender’s sole discretion for then-applicable reserve requirements,deposit insurance assessment rates and other regulatory costs; provided,however, if more than one rate is specified on Reuters Screen LIBO page, theapplicable rate shall be the arithmetic mean of all such rates (the “Index”).The Index is not necessarily the lowest rate charged by Lender on its loans. Ifthe Index becomes unavailable during the term of this loan, Lender may designatea substitute index after notice to Borrower. Lender will tell Borrower thecurrent Index rate upon Borrower’s request. The interest rate change will notoccur more often than each date of such change in the Index. Borrowerunderstands that Lender may make loans based on other rates as well. Theinterest rate to be applied to the unpaid principal balance of this Note will beat a rate of 2.000 percentage points over the Index. NOTICE: Under nocircumstances will the interest rate on this Note be more than the maximum rateallowed by applicable law.PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owedearlier than it is due. Early payments will not, unless agreed to by Lender inwriting, relieve Borrower of Borrower’s obligation to continue to make paymentsof accrued unpaid interest. Rather, early payments will reduce the principalbalance due. Borrower agrees not to send Lender payments marked “paid in full”,”without recourse”, or similar language. If Borrower sends such a payment,Lender may accept it without losing any of Lender’s rights under this Note, andBorrower will remain obligated to pay any further amount owed to Lender. Allwritten communications concerning disputed amounts, including any check or otherpayment instrument that indicates that the payment constitutes “payment in full”of the amount owed or that is tendered with other conditions or limitations oras full satisfaction of a disputed amount must be mailed or delivered to: Bankof America, N.A.; CCS-Commercial Banking; FL9-100-03-15; 600 Peachtree St. NE;Atlanta, GA 30308.LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged4.000% of the unpaid portion of the regularly scheduled payment, regardless ofany partial payments Lender has received.INTEREST AFTER DEFAULT. Upon default, including failure to pay upon finalmaturity, Lender, at its option, may, if permitted under applicable law,increase the variable interest rate on this Note to 8.000 percentage points overthe Index. The interest rate will not exceed the maximum rate permitted byapplicable law.DEFAULT. Each of the following shall constitute an event of default (“Event ofDefault”) under this Note: PAYMENT DEFAULT. Borrower fails to make any payment when due under this Note. OTHER DEFAULTS. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. DEFAULT IN FAVOR OF THIRD PARTIES. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s property or Borrower’s ability to repay this Note or perform Borrower’s obligations under this Note or any of the related documents. FALSE STATEMENTS. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. INSOLVENCY. The dissolution or termination of Borrower’s existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. PROMISSORY NOTE (Continued) Page 2================================================================================ EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. CHANGE IN OWNERSHIP. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower. ADVERSE CHANGE. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. INSECURITY. Lender in good faith believes itself insecure.LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principalbalance on this Note and all accrued unpaid interest immediately due, and thenBorrower will pay that amount.ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collectthis Note if Borrower does not pay. Borrower will pay Lender that amount. Thisincludes, subject to any limits under applicable law, Lender’s costs ofcollection, including court costs and fifteen percent (15%) of the principalplus accrued interest as attorneys’ fees, if any sums owing under this Note arecollected by or through an attorney at law, whether or not there is a lawsuit,and legal expenses for bankruptcy proceedings (including efforts to modify orvacate any automatic stay or injunction), and appeals. If not prohibited byapplicable law, Borrower also will pay any court costs, in addition to all othersums provided by law.GOVERNING LAW. This Note will be governed by, construed and enforced inaccordance with federal law and the laws of the State of Georgia. This Note hasbeen accepted by Lender in the State of Georgia.CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request tosubmit to the jurisdiction of the courts of any County, State of Georgia.RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves aright of setoff in all Borrower’s accounts with Lender (whether checking,savings, or some other account). This includes all accounts Borrower holdsjointly with someone else and all accounts Borrower may open in the future.However, this does not include any IRA or Keogh accounts, or any trust accountsfor which setoff would be prohibited by law. Borrower authorizes Lender, to theextent permitted by applicable law, to charge or setoff all sums owing on thedebt against any and all such accounts.LINE OF CREDIT. This Note evidences a revolving line of credit. Advances underthis Note, as well as directions for payment from Borrower’s accounts, may berequested orally or in writing by Borrower or by an authorized person. Lendermay, but need not, require that all oral requests be confirmed in writing.Borrower agrees to be liable for all sums either: (A) advanced in accordancewith the instructions of an authorized person or (B) credited to any ofBorrower’s accounts with Lender. The unpaid principal balance owing on this Noteat any time may be evidenced by endorsements on this Note or by Lender’sinternal records, including daily computer print-outs. Lender will have noobligation to advance funds under this Note if: (A) Borrower or any guarantor isin default under the terms of this Note or any agreement that Borrower or anyguarantor has with Lender, including any agreement made in connection with thesigning of this Note; (B) Borrower or any guarantor ceases doing business or isinsolvent; (C) any guarantor seeks, claims or otherwise attempts to limit,modify or revoke such guarantor’s guarantee of this Note in any other loan withLender; (D) Borrower has applied funds provided pursuant to this Note forpurposes other than those authorized by Lender; or (E) Lender in good faithbelieves itself insecure.ARBITRATION. (a) This paragraph concerns the resolution of any controversies orclaims between the parties, whether arising in contract, tort or by statute,including but not limited to controversies or claims that arise out of or relateto: (i) this agreement (including any renewals. extensions or modifications); or(ii) any document related to this agreement (collectively a “Claim”). For thepurposes of this arbitration provision only, the term “parties” shall includeany parent corporation, subsidiary or affiliate of the Bank involved in theservicing, management or administration of any obligation described or evidencedby this agreement.(b) At the request of any party to this agreement, any Claim shall be resolvedby binding arbitration in accordance with the Federal Arbitration Act (Title 9,U. S. Code) (the “Act”). The Act will apply even though this agreement providesthat it is governed by the law of a specified state.(c) Arbitration proceedings will be determined in accordance with the Act, theapplicable rules and procedures for the arbitration of disputes of JAMS or anysuccessor thereof (“JAMS”), and the terms of this paragraph. In the event of anyinconsistency, the terms of this paragraph shall control.(d) The arbitration shall be administered by JAMS and conducted, unlessotherwise required by law, in any U. S. state where real or tangible personalproperty collateral for this credit is located or if there is no suchcollateral, in the state specified in the governing law section of thisagreement. All Claims shall be determined by one arbitrator; however, if Claimsexceed $5,000,000, upon the request of any party, the Claims shall be decided bythree arbitrators. All arbitration hearings shall commence within 90 days of thedemand for arbitration and close within 90 days of commencement and the award ofthe arbitrator(s) shall be issued within 30 days of the close of the hearing.However, the arbitrator(s), upon a showing of good cause, may extend thecommencement of the hearing for up to an additional 60 days. The arbitrator(s)shall provide a concise written statement of reasons for the award. Thearbitration award may be submitted to any court having jurisdiction to beconfirmed and enforced.(e) The arbitrator(s) will have the authority to decide whether any Claim isbarred by the statute of limitations and, if so, to dismiss the arbitration onthat basis. For purposes of the application of the statute of limitations, theservice on JAMS under applicable JAMS rules of a notice of Claim is theequivalent of the filing of a lawsuit. Any dispute concerning this arbitrationprovision or whether a Claim is arbitratable shall be determined by thearbitrator(s). The arbitrator(s) shall have the power to award legal feespursuant to the terms of this agreement.(f) This paragraph does not limit the right of any party to: (i) exerciseself-help remedies, such as but not limited to, setoff; (ii) initiate judicialor nonjudicial foreclosure against any real or personal property collateral;(iii) exercise any judicial or power of sale rights, or (iv) act in a court oflaw to obtain an interim remedy, such as but not limited to, injunctive relief,writ of possession or appointment of a receiver, or additional or supplementaryremedies.(g) The filing of a court action is not intended to constitute a waiver of theright of any party, including the suing party, thereafter to require submittalof the Claim to arbitration.ADDITIONAL DEFAULTS.Each of the following shall constitute an additional event of default (“Event ofDefault”) under this Note:EVENT OF DEFAULT UNDER RELATED DOCUMENTS. A default or additional event ofdefault occurs under the terms of any promissory note, guaranty, pledgeagreement, security agreement or other agreement or instrument executed byBorrower or any guarantor, pledgor, accommodation party or other obligor inconnection with or relating to this Note.JUDGMENT. The entry of a judgment against any Borrower or guarantor, pledgor,accommodation party or other obligor which Lender deems to be of a materialnature, in Lender’s sole discretion.RESIGNATION/WITHDRAWAL. The resignation or withdrawal of any partner or amaterial owner of Borrower or any guarantor, pledgor, accommodation PROMISSORY NOTE (Continued) Page 3================================================================================party or other obligor [or any substantial change in the present executive ormanagement personnel of Borrower, any guarantor, pledgor, accommodation party orother obligor], as determined by Lender in its sole discretion.CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or forfeitureproceedings, whether by judicial proceeding, self-help, repossession or anyother method, by any creditor of Borrower or by any governmental agency againstany assets of Borrower and/or any guarantor, pledgor, accommodation party orother obligor. This includes a garnishment of: (1) any of Borrower’s accounts,including deposit accounts, with Lender and/or (2) any account, includingdeposit accounts, with Lender of any guarantor, pledgor, accommodation party orother obligor. However, this Event of Default shall not apply if there is a goodfaith dispute by such Borrower and/or guarantor, pledgor, accommodation party orother obligor as to the validity or reasonableness of the claim which is thebasis of the creditor or forfeiture proceeding and if such Borrower and/orguarantor, pledgor, accommodation party or other obligor gives Lender writtennotice of the creditor of forfeiture proceeding and deposits with Lender moniesor a surety bond for the creditor or forfeiture proceeding, in an amountdetermined by Lender, in its sole discretion, as being an adequate reserve orbond for the dispute.ASSIGNMENT. Lender may sell or offer to sell this Note, together with any andall documents guaranteeing, securing or executed in connection with this Note,to one or more assignees without notice to or consent of Borrower. Lender ishereby authorized to share any information it has pertaining to the loanevidenced by this Note, including without limitation credit information on theundersigned, any of its principals, or any guarantors of this Note, to any suchassignee or prospective assignee.COUNTERPARTS. This Note may be executed in any number of counterparts, each ofwhich when so executed shall be deemed to be an original and all of which takentogether shall constitute one and the same agreement.PRE BILLING. If the Borrower and Lender elect to use pre-billing calculation,for each payment date (the “Due Date”) the amount of each payment debit will bedetermined as follows: On the “Billing Date” Lender will prepare and mail toBorrower an invoice of the amounts that will be due on that Due Date (“BilledAmount”). (The “Billing Date” will be a date that is a specified number ofcalendar days prior to the Due Date, which number of days will be mutuallyagreed from time to time by Lender and Borrower.) The calculation of the BilledAmount will be made on the assumption that no new extensions of credit orpayments will be made between the Billing Date and the Due Date, and that therewill be no changes in the applicable interest rate. On the Due Date Lender willdebit the Designated Account for the Billed Amount, regardless of the actualamount due on that date (“Accrued Amount”). If the Due Date does not fall on aBusiness Day, Lender shall debit the Designated Account on the first BusinessDay following the Due Date. For purposes of this Agreement, “Business Day” meansa day other than Saturday, Sunday or other day on which commercial banks areauthorized to close or are in fact closed in the state where the Lender’slending office is located. If the Billed Amount debited to the Designated Amountdiffers from the Accrued Amount, the difference will be treated as follows: Ifthe Billed Amount is less than the Accrued Amount, the Billed Amount for thefollowing Due Date will be increased by the amount of the underpayment. Borrowerwill not be in default by reason of any such underpayment. If the Billed Amountis more than the Accrued Amount, the Billed Amount for the following Due Datewill be decreased by the amount of the overpayment. Regardless of any suchdifference, interest will continue to accrue based on the actual amount ofprincipal outstanding without compounding. Lender will not pay interest on anyoverpayment.AUTOMATIC PAYMENTS. Borrower hereby authorizes Lender automatically to deductfrom Borrower’s account numbered 003257772600 the amount of any loan payment. Ifthe funds in the account are insufficient to cover any payment, Lender shall notbe obligated to advance funds to cover the payment. At any time and for anyreason, Borrower or Lender may voluntarily terminate Automatic Payments.TERMINATION OF AUTOMATIC PAYMENTS. In the event that Borrower terminates theAutomatic Payment arrangement with Lender, Borrower agrees that the interestrate under the Note will increase, at the discretion of the Lender, by one-halfpercentage point (0.50%) per annum over the rate of interest stated in the Note,and the amount of each interest installment will be increased accordingly. Theeffective rate of interest under the Note shall not in any event exceed themaximum rate permitted by law.ADVANCES UNDER THE LINE OF CREDIT. Except as otherwise provided in this Note,advances under the line of credit provided under this Note will be availableuntil the earlier of any event of default under this Note, or June 30, 2005 (the”Expiration Date”). Borrower may borrow, repay and re-borrow under this Note atany time until the Expiration Date. The total principal amount outstanding underthis Note at any one time must not exceed the principal amount of this Note,provided that the amount advanced hereunder does not exceed any borrowing baseor other limitation on borrowings by Borrower.FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT:(A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES WITHRESPECT TO THE SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANYCOMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONSRELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEETOR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THECONTRARY, (C) THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THISDOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, ORSUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.UNUSED COMMITMENT FEE. Borrower agrees to pay a fee on any difference betweenthe maximum principal amount available under this Note and the amount of creditit actually uses, determined by the weighted average credit outstanding duringthe specified period. The fee will be calculated at .125% per year. This fee isdue on September 26, 2004, and on the 26th day of each following quarter untilthe expiration of the availability of advances under this Note.ADDRESS FOR NOTICES. Any notice required to be given under this Note shall begiven in writing, and shall be effective when actually delivered, when actuallyreceived by telefacsimile (unless otherwise required by law), when depositedwith a nationally recognized overnight courier, or, if mailed, when deposited inthe United States mail, as first class, certified or registered mail postageprepaid, directed if to Borrower at the address shown near the beginning of thisNote and if to Lender at the address set forth below. Any party may change itsaddress for notices under this Note by giving formal written notice to the otherparties, specifying that the purpose of the notice is to change the party’saddress. For notice purposes, Borrower agrees to keep Lender informed at alltimes of Borrower’s current address. Unless otherwise provided or required bylaw, if there is more than one Borrower, any notice given by Lender to anyBorrower is deemed to be notice given to all Borrowers. Notwithstanding anythingto the contrary herein, all notices and communications to the Lender shall bedirected to the following address: Bank of America, N.A Jacksonville CCS – Attn: Notice Address 9000 Southside Blvd., Bldg. 100, 3rd Floor Jacksonville, FL 32256.SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, andupon Borrower’s heirs, personal representatives, successors and assigns, andshall inure to the benefit of Lender and its successors and assigns.GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights orremedies under this Note without losing them. Borrower and any other person whosigns, guarantees or endorses this Note, to the extent allowed by law, waivepresentment, demand for payment, and notice of dishonor. Upon any change in theterms of this Note, and unless otherwise expressly stated in writing, no partywho signs this Note whether as maker, guarantor, accommodation maker orendorser, shall be released from liability. All such parties waive any right torequire Lender to take action against PROMISSORY NOTE (Continued) Page 4.================================================================================any other party who signs this Note as provided in O.C.G.A. Section 10-7-24 andagree that Lender may renew or extend (repeatedly and for any length of time)this loan or release any party or guarantor or collateral; or impair, fail torealize upon or perfect Lender’s security interest in the collateral; and takeany other action deemed necessary by Lender without the consent of or notice toanyone. All such parties also agree that Lender may modify this loan without theconsent of or notice to anyone other than the party with whom the modificationis made. The obligations under this Note are joint and several.THE NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THE NOTE IS AND SHALLCONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.BORROWER:CITI TRENDS, INC. By: /s/ Tom Stoltz (Seal) ——————————————– Tom Stoltz, Chief Financial Officer of Citi Trends, Inc.