<PAGE>
                                                                 NO POSTAGE
                                                                 NECESSARY
                                                                 IF MAILED
                                                                  IN THE
                                                               UNITED STATES
                 BUSINESS REPLY MAIL
FIRST CLASS MAIL   PERMIT NO. 4087   GRAND RAPIDS, MICHIGAN

           POSTAGE WILL BE PAID BY ADDRESSEE


                   ATTN: NEW ACCOUNTS
                        GANTOS
                      PO BOX 875
                GRAND RAPIDS MI 49502-8802

<PAGE>

                   CREDIT APPLICATION
                      APPLY TODAY


                      AND RECEIVE


                       10% OFF

                  YOUR FIRST PURCHASE


                          GANTOS
                       004 063 246
                       WENDY ALLEN

                Subject to Credit Approval



<PAGE>
CREDIT APPLICATION

ACCOUNT TYPE           INDIVIDUAL       JOINT

TELL US ABOUT YOURSELF

NAME

HOME ADDRESS

CITY                                    STATE      ZIP

HOW LONG AT ADDRESS             YEARS       MONTHS

HOME TELEPHONE

OWN HOME            RENT         OTHER

SOCIAL SECURITY NO.

DATE OF BIRTH

PREVIOUS ADDRESS
(IF LESS THAN A YEAR)

CITY                                     STATE        ZIP


YOUR JOB

EMPLOYER

BUSINESS TELEPHONE

ANNUAL INCOME
(YOU NEED NOT DISCLOSE        UP TO $22,999             $34,000 TO $63,999
ALLIMONY, CHILD SUPPORT
OR SEPARATE MAINTENANCE
INCOME UNLESS YOU WISH        $23,000 TO $33,999        $64,000 PLUS
US TO CONSIDER IT)

YOUR BANK

                              CHECKING                  SAVINGS

BANK NAME

AUTHORIZED BUYERS

CO-APPLICANT INFORMATION

NAME

HOME ADDRESS

CITY                                      STATE      ZIP

HOME TELEPHONE

SOCIAL SECURITY NO.

RELATIONSHIP

EMPLOYER

BUSINESS TELEPHONE

ANNUAL INCOME
(YOU NEED NOT DISCLOSE          UP TO $22,999        $34,000 TO $63,999
ALLIMONY, CHILD SUPPORT
OR SEPARATE MAINTENANCE
INCOME UNLESS YOU WISH         $23,000 TO $33,999   $64,000 PLUS
US TO CONSIDER IT)

To find out about changes to the information in this application, write 
us at: Gantos Stores, Inc., 3260 Patterson S.E. P.O. Box 875, Grand Rapids, MI
49588.

STATE LAW REQUIRES US TO GIVE YOU THE FOLLOWING NOTICES.

CALIFORNIA RESIDENTS: The applicant, if married, may apply for a separate 
account. After credit approval each applicant shall have the right to use 
this Account to the extent of any creditor and each applicant may be liable 
for all amounts of credit extended under this Account to any joint applicant. 
OHIO RESIDENTS: THE OHIO LAWS AGAINST DISCRIMINATION REQUIRE THAT ALL 
CREDITORS MAKE CREDIT EQUALLY AVAILABLE TO ALL CREDIT WORTHY CUSTOMERS, AND 
THAT CREDIT REPORTING AGENCIES MAINTAIN SEPARATE CREDIT HISTORIES ON EACH 
INDIVIDUAL UPON REQUEST: THE OHIO CIVIL RIGHTS COMMISSION ADMINISTERS 
COMPLIANCE WITH LAW WISCONSIN RESIDENTS: Marital Notice - No provision of a 
marital property agreement, unilateral statement under Sec. 766.59 Wis. Stats.
or court decree under Sec. 766.70 Wis. Stats. will adversly affect our rights 
unless we are furnished a copy of the agreement, statement or decree, or have 
actual knowledge of its terms before credit is granted or the account is 
opened.

Pursuant to Wisconsin law, we are required to ask married applicants to 
supply the following information:


-------------------------------------------------------------------------------
Spouse's Name


-------------------------------------------------------------------------------
Spouse's Address


STORE USE ONLY
STORE NO.           RINGING NO.         ACCOUNT NO.          LIMIT
-------------------------------------------------------------------------------


-------------------------------------------------------------------------------
ID CHECKED BY                DRIVER'S LICENSE NO.
-------------------------------------------------------------------------------


-------------------------------------------------------------------------------
CO-APPLICANTS DRIVER'S LICENSE NO.
-------------------------------------------------------------------------------


-------------------------------------------------------------------------------
I HAVE READ AND AGREE TO BE BOUND BY THE RETAIL INSTALLMENT CREDIT AGREEMENT 
TO THE RIGHT OF THIS APPLICATION, I ACKNOWLEDGE THAT I HAVE RECEIVED A COPY 
             OF THE RETAIL INSTALLMENT CREDIT AGREEMENT.


-------------------------------------  ----------------------------------------
APPLICANT'S SIGNATURE          DATE    CO-APPLICANT'S SIGNATURE           DATE
<PAGE>

12. TELEPHONE MONITORING. In order to assure that you receive the best 
possible customer service, and that our Associates are complying with our 
policies and all applicable laws in their contacts with you, on occasion, a 
second Associate may listen to customer calls.

13. USE OF ACCOUNT INFORMATION. From time to time we make information, such 
as your name and address, available to others who may in turn solicit you for 
quality products or services. You have the right to tell us that you do not 
want us to make this type of information about you available to others. To do 
so, you may call us toll-free at 1-800-522-1136, and we will honor your 
request.

14. CHANGE OF ADDRESS AND APPLICABLE LAW. You agree to notify us promptly in 
writing if you move. Until we receive written notice of your new address, we 
will continue to send periodic statements and other notices to the address 
you gave on the application for this Account. You understand and expressly 
agree that the law of the State of Michigan will govern this Agreement, 
except that the law of your state of residence will govern this Agreement if 
you live in a state where a Gantos retail outlet is located.

NOTICE TO MARYLAND RESIDENTS: THIS ACCOUNT IS GOVERNED BY SUBTITLE 9, TITLE 
12 OF THE MARYLAND COMMERCIAL LAW ARTICLE.

NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS 
AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR 
SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY 
HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

NOTICE TO THE BUYER:

1. DO NOT SIGN THE CREDIT AGREEMENT BEFORE YOU READ IT OR IF IT CONTAINS ANY 
BLANK SPACE.

2. YOU ARE ENTITLED TO A COMPLETELY FILLED-IN COPY OF THIS CREDIT AGREEMENT.

3. YOU MAY AT ANY TIME PAY THE TOTAL BALANCE OUTSTANDING UNDER THIS AGREEMENT.

4.FINANCE CHARGES WILL BE MADE IN AMOUNTS AND AT RATES NOT IN EXCESS OF THOSE 
PERMITTED BY LAW.

5. ADDITIONAL NOTICE FOR MASS. RESIDENTS: YOU MAY CANCEL A PURCHASE UNDER 
THIS AGREEMENT IF IT HAS BEEN SIGNED BY A PARTY THERETO AT A PLACE, OTHER THAN 
THE ADDRESS OF THE SELLER WHICH MAY BE HIS MAIN OFFICE OR BRANCH THEREOF 
PROVIDED, YOU NOTIFY THE SELLER IN WRITING AT HIS MAIN OFFICE OR BRANCH, BY 
ORDINARY MAIL POSTED, BY TELEGRAM SENT OR BY DELIVERY NOT LATER THAN MIDNIGHT 
OF THE THIRD BUSINESS DAY FOLLOWING A PURCHASE UNDER THIS AGREEMENT.

YOUR BILLING RIGHTS
KEEP THIS NOTICE FOR FUTURE USE.

THIS NOTICE CONTAINS IMPORTANT INFORMATION ABOUT YOUR RIGHTS AND OUR 
RESPONSIBILITIES UNDER THE FAIR CREDIT BILLING ACT.

NOTIFY US IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR BILL

If you think your bill is wrong, or if you need more information about a 
transaction on your bill, write us at Gantos Stores, Inc. 3260 Patterson S.E. 
P.O Box 875 Grand Rapids, MI 49588. Attn: Credit Manager.

Write to us as soon as possible. We must hear from you no later than 60 days 
after we sent you the first bill on which the error or problem appeared. You 
can telephone us, but doing so will not preserve your rights.

In your letter, give us the following information:

   - Your name and account number.

   - The dollar amount of the suspected error.

   - Describe the error and explain, if you can, why you believe there is an 
error.

If you need more information, describe the item you are not sure about.

YOUR RIGHTS AND OUR RESPONSIBILITIES AFTER WE RECEIVE YOUR WRITTEN NOTICE

We must acknowledge your letter within 50 days, unless we have corrected the 
error by then. Within 90 days, we must either correct the error or explain 
why we believe the bill was correct. After we receive your letter, we cannot 
try to collect any amount you question, or report you as delinquent. We can 
continue to bill you for the amount in question, including finance charges,
and we can apply any unpaid amount against your credit limit. You do not have 
to pay any questioned amount while we are investigating, but you are still 
obligated to pay the parts of your bill that are not in question.

If we find that we made a mistake on your bill, you will not have to pay any 
finance charges related to any questioned amount. If we did not make a 
mistake, you may have to pay finance charges and you will have to make up any 
missed payments on the questioned amount. In either case, we will send you a 
statement of the amount you owe and the date that it is due.

If you fail to pay the amount that we think you owe, we may report you as
delinquent. However, if our explanation does not satisfy you and you write 
to us within ten days telling us that you still refuse to pay, we must tell 
anyone we report you to that you have a question about your bill. And, we must 
tell you the name of anyone we reported you to. We must tell anyone we report 
you to that the matter has been settled between us when it finally is.

If we don't follow these rules, we can't collect the first $50 of the 
questioned amount, even if your bill was correct.

SPECIAL RULE FOR CREDIT CARD PURCHASES

If you have a problem with the quality of property or services that you 
purchased with a credit card and you have tried in good faith to correct the 
problem with us, you may have the right not to pay the remaining amount due on 
the property or services.

                                     GANTOS
                                  P.O. BOX 875,
                             GRAND RAPIDS, MI  49588
                         TEMPORARY CHARGE CARD VALID ONLY
                           WITH CUSTOMER IDENTIFICATION
<PAGE>

GANTOS RETAIL INSTALLMENT CREDIT AGREEMENT

The words "you" and "your" refer to any person who signs this Retail Installment
Credit Agreement or who is authorized to use this Gantos Charge Account; "we,"
"us," and "our" refer to Gantos Stores, Inc., 3260 Patterson S.E., P.O. Box 875,
Grand Rapids, MI 49588. You agree to the following regarding all purchases made
on your Gantos Charge Account by you or by anyone authorized by you to use the
Account:

1.  COST OF CREDIT. There is no Finance Charge in any monthly billing period in
which there is no balance at the beginning of the billing period (the "Previous
Balance" shown on your bill) or in which payments and credits made within 28
days after the billing date equal or exceed the balance at the beginning of the
billing period. If we do not receive the full amount due within 28 days after
the billing date shown on your monthly statement, you agree to pay the cash
price of all purchases and a Finance Charge determined by application of the
monthly periodic rate of 1.75% (ANNUAL PERCENTAGE RATE 21%) to the Average Daily
Balance, except in the following states:

----------------------------------------------------------
                                               ANNUAL
     State              Periodic Rate      PERCENTAGE RATE
----------------------------------------------------------
     MA, MN, NC             1.50%              18.00%

     IA                     1.85%              19.80%

     KS               1.75% up to $1000          21%
                       1.2% over $1000         14.4%
----------------------------------------------------------

A minimum FINANCE CHARGE of $.50 will be imposed each month in which the Finance
Charge determined by application of the periodic rate would be less than $.50,
except there is no minimum FINANCE CHARGE in District of Columbia, Maryland and
North Carolina.

2.  METHOD OF COMPUTING FINANCE CHARGES. We figure the Finance Charge on your
account by applying the above-stated periodic rate to the "average daily
balance" of your Account, which we get by taking the beginning balance of your
Account each day, adding any new purchases (except we do not add in current
purchases in Massachusetts and Minnesota), and subtracting any payments or
credits and unpaid Finance Charge. This gives us the daily balance. Then, we add
up all the daily balances for the billing cycle and divide the total by the
number of days in the billing cycle. This gives us the "average daily balance."

3.  MINIMUM PAYMENT. If the New Balance is up to $200, you agree to make a
minimum payment each month of at least $20 (balances of $20 or less are payable
in full). When the New Balance exceeds $200, your minimum payment will be 10% of
the New Balance. THE BUYER MAY AT ANY TIME PAY HIS TOTAL INDEBTEDNESS.

4.  LATE PAYMENT FEE. If you live in CA, CO, CT, DC, IL, IN, IA, KS, KY, MA, MD,
MI, MN, MO, NC, NH, NJ, NY, OH, OR, PA, RI, TN, VA or WI, and your minimum
monthly payment is not received by us within 10 days after it is due (15 days in
MA and RI; 30 days in IA and NC; 31 days in PA), we may impose a Late Payment
Fee. The Late Payment Fee will be $10.00 in all states mentioned above except as
follows: $5.00 if the minimum payment is under $25.00 in KS and MO; $5.00 if the
outstanding balance is under $100 in NC; the lesser of $10.00 or 10% of the
outstanding balance in MA; and the lesser of 5% of the amount past due or $5.00
in CT, NH and TN. We will add any Late Payment Fee to the balance due on your
Account. INDIANA RESIDENTS: THE AMOUNT OF THE $10.00 LATE PAYMENT FEE IS SUBJECT
TO CHANGE AS PROVIDED IN THE INDIANA CODE SECTION 24-4.5-1-106.

5.  RETURNED CHECK CHARGE. If any check sent to us in payment on your Account is
returned to us unpaid by the bank, we may charge you a processing charge of $15
to cover our collection costs, or such lesser amount as may be authorized by
law, and you agree that we may add such charge to the balance due on your
Account. This charge is not imposed in MA, ME or PA.

6.  OTHER FEES.  There is no annual fee or other charges imposed for the
availability, issuance or renewal of the Gantos credit card.

7.  DEFAULT/COLLECTION COSTS.  If you fail to pay any minimum payment when due,
subject to any right you may have under applicable state law to receive notice
of and to cure your default, we may declare your entire balance due and payable
(except in WI you will not be in default unless you fail to make a minimum
payment on two occasions within a 12-month period). If the Account is referred
to an attorney who is not our salaried employee, you agree to pay, in addition
to the full amount owed and any court costs, attorney's fees of up to 20% of the
total amount due, but only to the extent permitted by applicable state law.

8.  CANCELING OR LIMITING YOUR CREDIT.  We have the right at any time to limit
or terminate your use of this Account without giving you notice in advance. Upon
our request, you will return to us any Gantos credit card.

9.  CHANGING THIS AGREEMENT. We have the right to change this Agreement at any
time by giving you advance notice of the intended change, or as otherwise
allowed by law. To the extent permitted by law, any change may at our option be
applied to any balance then outstanding and to any future transactions. If you
do not agree to the change, you may end this Agreement, or you may end it for
any other reason, but if you do, you agree to return any Gantos credit card and
pay the total balance due under the terms of this Agreement.

10.  CREDIT INVESTIGATION. We may request a consumer report from consumer
reporting agencies in considering your application and for the purpose of an
update, renewal or extension of credit. Upon your request we will inform you of
the name and address of each consumer reporting agency from which we obtained a
consumer report relating to you. You authorize us to verify your employment,
credit references and other information concerning your creditworthiness.  We
may report your performance under this Agreement to credit bureaus and others
who may properly receive such information.

11.  DISPUTED AMOUNTS. All written communications concerning disputed amounts,
including any check or other payment instrument in an amount less than the full
amount due that you send to us marked "paid in full," you tender with other
conditions or limitations, or you otherwise tender as full satisfaction of a
disputed amount, must be sent to us at the address for billing inquiries shown
on the billing statement.

NOTICE: SEE REVERSE SIDE FOR IMPORTANT INFORMATION.


[GANTOS CHARGE CARD]