Document:

<PAGE>

                                                                  Exhibit 10.1.9

                        CREDIT CARD PROCESSING AGREEMENT

          This Credit Card Processing Agreement is made as of this 31st day of
January, 1996 between WORLD FINANCIAL NETWORK NATIONAL BANK, a national banking
association (the "Bank"), and Lane Bryant, Inc., a Delaware corporation (the
"Corporation"), and Sierra Nevada Factoring, Inc., a Nevada corporation
("Factoring") (the Corporation and Factoring being collectively referred to
herein as the "Company").

          WHEREAS the Company and the Bank believe that it is desirable and in
their respective best interests for the Bank to continue, in a manner generally
consistent with past practices, to issue credit cards bearing the trade names,
trademarks, logos and service marks used in the Company's Lane Bryant retail or
catalogue business (the "Business") which will allow the customers of the
Company to purchase goods from the Company using funds advanced by the Bank; and

          WHEREAS in order to implement such arrangements, the parties hereto
desire to enter into this Agreement;

          NOW, THEREFORE, the parties hereby agree as follows:

          Section 1. Trademarks. The Company hereby authorizes the Bank to use
                     ----------
the trademark "Lane Bryant" on credit cards owned or issued by the Bank, monthly
billing statements, collection correspondence, credit card agreements, credit
applications, customer service correspondence and in such other written and oral
communications with cardholders as are necessary or convenient in connection
with this Agreement, in each case consistent with past practices. The "Lane
Bryant" trademark is referred to herein as the "Mark". The Company shall have
the right to approve in its sole discretion the "art" (including colors and font
styles) for all proposed uses of the Mark by the Bank. The Bank shall not use
the Mark for any purpose other than as set forth in the first sentence of this
Section 1.

          Section 2. Credit Card System.
                     ------------------

          2.1 New Credit Cards.
              ----------------

          2.1.1 Issuance of Credit Cards. To the extent requested by the
                ------------------------
Company, the Bank will issue credit cards bearing the Mark ("Credit Cards") to
customers of the Business who apply for such Credit Cards and related extensions
of credit. Such customers (i) must qualify for the extension of credit under
credit standards related to new account approvals, credit limits and
authorization management ("Credit Standards") which will be determined by the
Bank from time to time and (ii) must accept the Bank's standard form of credit
card agreement containing the terms and conditions governing extensions of
credit to Persons who hold Credit Cards and their authorized users (attached
hereto as Exhibit 2.1.1(a)). Notwithstanding the foregoing, (i) the Credit
Standards established by the Bank from time to time in connection with the
issuance of Credit Cards for use in connection with the Business shall be
consistent with past practices (as described in Exhibit 2.1.1(b)), with such
changes as shall be (A) approved by the Company in its reasonable discretion or
(B) determined by the Bank in good faith to be

<PAGE>

necessary from the standpoint of safe and sound banking practices and (ii) the
Bank may make any change in the terms of its agreement with any person who holds
a Credit Card (including repayment terms, fees and finance charge rates) after
prior notice to and consultation with the Company. The Bank hereby confirms its
understanding that the Company intends to offer and promote credit as outlined
in Section 2.2. The Bank will bear the costs of the issuance of Credit Cards
under this Section 2.1.

          2.1.2 Credit Maximization. The Company will be entitled to use credit
                -------------------
related promotional strategies consistent with past practices. The Bank will
work in good faith with the Company to develop business strategies with respect
to the issuance of Credit Cards intended to maximize the potential of the
Business and, in that regard, will consider in good faith proposals involving
variances from the Bank's general Credit Standards or changes in the terms of
the Bank's agreement with any person who holds a Credit Card; provided that
                                                              --------
subject to compliance with the provisions of Section 2.1.1, Credit Standards and
the terms of such agreement shall in all circumstances be determined by the
Bank. The terms of any program involving variances from the Bank's general
Credit Standards or changes in the terms of the Bank's agreement with any person
who holds a Credit Card, including (without limitation) fees or other charges to
be paid by either party, shall be agreed on a program-by-program basis.

          2.2 Promotion. The Company will use its reasonable efforts to promote
              ---------
the use of Credit Cards in the Business and to acquire new Cardholders (as
defined below), for the Bank through the use of, for example, "instant credit,"
"quick credit," pre-approved solicitations, applications and promotional
material displayed in stores and inserted in catalogues and special offers to
Cardholders, in each case consistent with past practices. The costs incurred by
the Company and the Bank (including, among other things, the cost of printing
application forms, promotional material, pre-approved solicitations and instant
and quick credit contracts and the cost of special offers) will be borne by the
Company and the Bank on terms to be negotiated from time to time in a manner
consistent with past practices. The Bank shall have two Business Days to review
for legal compliance all credit application forms and marketing materials
(including, without limitation, those referred to above) prior to their being
printed.

          Section 3. Acceptance of Credit Cards. The Company will permit Persons
                     --------------------------
who hold Credit Cards (subject to the restrictions of this Agreement) or other
credit cards owned by the Bank that the Bank has designated and their authorized
users ("Cardholders") to purchase goods sold by the Business without any cash
payment by use of a Credit Card, subject to the following conditions:

          3.1 Charge Slip (Credit Card Presented). If the customer presents a
              -----------------------------------
Credit Card at the time of sale, the Company will maintain a record of the sale
in a form acceptable to the Bank which reflects the following:

          3.1.1 A brief identification of the property or service purchased (the
"Transaction");

          3.1.2 The date of the Transaction;

                                      -2-

<PAGE>

          3.1.3 The dollar amount of the purchase price of the merchandise or
service which was the subject of the Transaction, including applicable shipping,
handling and taxes;

          3.1.4 An imprint or electronic capture of the Credit Card account
number or, in the event of equipment malfunction, a written notation of such
account number; and

          3.1.5 The Cardholder's signature.

          3.2 Charge Slip (Credit Card Not Presented). The Bank acknowledges and
              ---------------------------------------
agrees that a Cardholder need not present a Credit Card at the time of sale and
that, subject to Section 3.5, the Company may accept charges to a Credit Card
verbally from the customer or via a written order form from the customer. If the
customer does not present a Credit Card at the time of sale, the Company will
maintain a record of the sale in a form acceptable to the Bank which reflects,
in lieu of the information set forth in Section 3.1.1 through 3.1.5, the
following:

          3.2.1 A brief identification of the Transaction;

          3.2.2 The date of the Transaction;

          3.2.3 The dollar amount of the purchase price of the merchandise or
service which was the subject of the Transaction, including applicable shipping,
handling and taxes;

          3.2.4 A written notation of the Credit Card account number, which
shall have been obtained from the customer and recorded in the Company's
customer file;

          3.2.5 The customer's name and address and, except in the case of
catalogue purchases, personal identification type and number; and

          3.2.6 If applicable, the name and address to where the merchandise
which was the subject of the Transaction was shipped and the date and method of
shipment.

          3.3 Retention of Charge Slip. The Company will retain a legible copy
              ------------------------
of each charge slip for six months following the date of the Transaction and
will provide such copy to the Bank within 30 days of the Bank's request
therefor; provided that the Bank will request delivery of such information only
          --------
in the case of a bona fide dispute (the existence of such dispute to be
determined by the Bank in its reasonable discretion) relating to the underlying
Transaction, upon the inquiry of the applicable Cardholder or as requested by
auditors of the Bank in connection with their audit of the Bank's financial
statements or by any governmental authority.

          3.4 Authorization. The Transaction is authorized by the Bank in
              -------------
accordance with the floor limits and other procedures in effect at the time or
such authorization is dispensed with under rules established by the Bank from
time to time in accordance with Section 8.3 to deal with situations in which
authorization is not available because of disruption of the Bank's computer
system or other causes provided for in such rules, consistent with past
practice.

          3.5 Chargebacks. The Company agrees to accept as a chargeback any
              -----------
charge on a Credit Card where:

                                      -3-

<PAGE>

          3.5.1 The Cardholder disputes the charge and the Company fails to
provide a legible copy of the charge slip within 30 days of the Bank's request
therefor in accordance with Section 3.3;

          3.5.2 The Company failed to obtain authorization from the Bank in
accordance with Section 3.4;

          3.5.3 The Company failed to complete the charge slip in accordance
with Section 3.1 or 3.2, as applicable;

          3.5.4 A Company employee fraudulently misused the Credit Card or
account number;

          3.5.5 A dispute arises from the Cardholder being charged or credited
more than once for the same sale, payment or return;

          3.5.6 A dispute with the Cardholder arises from a voided Transaction
or an invalid Credit Card account number;

          3.5.7 A dispute with the Cardholder arises from an improperly opened
Credit Card account, or the account is otherwise uncollectible, where a Company
employee failed to comply with new account procedures in effect at the time the
account was opened;

          3.5.8 The Bank, consistent with past practices, gives the Cardholder
credit for (or accepts as payment) a non-expired discount coupon or gift
certificate in respect of a prior purchase; or

          3.5.9 A dispute arises from the Company's failure properly to identify
a catalogue purchaser as the Cardholder where such failure results in
merchandise being shipped without the actual Cardholder's authorization.

          The amount charged back with supporting detail will be invoiced to the
Company weekly, and all required payments by the Company shall be made within 30
days after receipt of an invoice. If the Company pays the Bank any chargeback
amount pursuant to this Section 3.5 or if such payment is netted against amounts
payable by the Bank pursuant to Section 4.1.1, any remittances relating to such
chargeback from the Cardholder subsequently collected by the Bank shall, to the
extent not refunded to the Cardholder, be credited by the Bank to the Company.

          Section 4. Payment.
                     -------

          4.1 Payment by Bank.
              ---------------

          4.1.1 The Bank will pay to the Company, as full consideration for any
Transaction between the Company and any Cardholder using a Credit Card, as to
which the Company has complied with the provisions of Section 3 above, the
amount shown on the records of the Company for each Transaction, including all
applicable shipping, handling and taxes, less a discount, which discount shall
be equal to the discount rate determined in accordance with

                                      -4-

<PAGE>

Section 4.1.5 (expressed as a fraction) multiplied by the amount shown on the
records of the Company for each Transaction (exclusive of all applicable
shipping, handling and taxes).

          4.1.2 The Bank will pay such amount by transferring immediately
available funds to an account designated by the Company at any bank to which the
Bank may make electronic fund transfers before the end of the second Business
Day following the receipt by the Bank of the information required by Section 3.1
or 3.2, such information to be properly formatted and edited and transferred via
a telecommunications connection between the Company and the Bank pursuant to
such computer programs and telecommunications protocols as the Bank may, in its
reasonable discretion, designate from time to time, subject to reasonable prior
notice. The Company will transmit (in the manner referred to above) to the Bank
an audited and balanced file in the format specified by the Bank containing all
such information within two Business Days after the occurrence of the underlying
Transaction; provided that if, as a result of technical disruptions, any store
             --------
locations are not polled within a normal period after the occurrence of the
underlying Transactions, the Company will transmit such information relating to
such store locations as soon as reasonably practicable after polling is
completed.

          4.1.3 The Company may not attempt to collect any amount from any
Cardholder with respect to a Transaction which has been paid for by the Bank
under this Section 4.1 and not charged back to the Company pursuant to Section
3.5.

          4.1.4 The Company will, consistent with past practices, accept
payments from Cardholders for amounts due on Credit Cards ("In-Store Payments").
Any In-Store Payments received by the Company will be held in trust for the Bank
and its assigns and netted against amounts payable by the Bank pursuant to
Section 4.1.1 (provided that the Company shall not be required to keep In-Store
               --------
Payments separate from other payments received by the Company) and evidence of
such payments will be transmitted to the Bank on a daily basis in accordance
with the procedures set forth in Section 4.1.2. Notwithstanding the foregoing:

          (a) if any bankruptcy or other insolvency proceeding has been
commenced against the Company (and so long as the same has not been dismissed),
the Company shall promptly comply with any written instruction (a "Store Payment
Notice") received by the Company from the Bank or any successor to the Bank as
"Servicer" under the Pooling and Servicing Agreement referred to below (the Bank
or any such successor being the "Servicer") to take either of the following
actions (as specified in such instruction)

          (i) cease accepting In-Store Payments and thereafter inform
     Cardholders who wish to make In-Store Payments that payment should instead
     be sent to Servicer (but only if the Servicer is required by the Pooling
     and Servicing Agreement to give such notice); or

          (ii) (A) deposit an amount equal to all In-Store Payments received by
     each retail location operated by the Company, not later than the Business
     Day following receipt, into a segregated trust account (the "Store
     Account") established by the Company for this purpose and, pending such
     deposit, to hold all In-Store Payments in trust for the Bank and its
     assigns, (B) use commercially reasonable efforts not to permit any amounts
     or items not constituting In-Store Payments to be deposited in the Store

                                      -5-

<PAGE>

     Account and (C) cause all available funds in each Store Account to be
     transferred on a daily basis to an account designated in the Store Payment
     Notice;

provided that the Company need not take the actions specified in clause (i) or
--------
clause (ii) if the Company or any of its affiliates provides the Servicer or the
Trustee under (and as defined in) the Pooling and Servicing Agreement with a
letter of credit, surety bond or other similar instrument covering collection
risk with respect to In-Store Payments and all conditions specified in the
Pooling and Servicing Agreement with respect to such letter of credit, surety
bond or other similar instrument are satisfied;

          (b) if and to the extent that the Bank so requests in writing at a
time when the Bank is required by the Pooling and Servicing Agreement to make
such request, In-Store Payments shall no longer be netted against amounts
payable by the Bank pursuant to Section 4.1.1, but instead the Company shall
transfer to the Bank by wire transfer of immediately available funds (or, if the
aggregate amount to be transferred pursuant to this clause (b) and Section 4.2
is less than $10,000, by check), not later than the third Business Day following
receipt of any In-Store Payments, an amount equal to the sum of such In-Store
Payments.

So long as the Company complies with instructions delivered in accordance with
paragraph (a) or (b), any amounts payable by the Bank pursuant to Section 4.1.1
shall be made without deduction for In-Store Payments.

          For purposes of the foregoing, the "Pooling and Servicing Agreement"
means the Pooling and Servicing Agreement dated as of January 17, 1996 among the
Bank and The Bank of New York, as trustee, including each Supplement thereunder,
as the same may be amended, supplemented or otherwise modified from time to
time, except that no amendment, supplement or other modification to such
Agreement that affects the circumstances in which the Company may be required to
take the actions referred to in paragraph (a) or (b) above or in Section 4.2.3
shall be given effect for purposes of this Agreement unless consented to by the
Company.

          4.1.5 Discount Rate. The applicable discount rate referred to in
                -------------
Section 4.1.1 shall be the then applicable discount rate determined in
accordance with the matrix set forth in Exhibit 4.1.5; provided that in the
                                                       --------
event of a legislated or judicial reduction in the annual percentage rate or
fees that may be charged by the Bank to Cardholders, the Company and the Bank
agree to negotiate in good faith an increase in the discount rate.

          4.2 Payment by Company. If the Bank has paid the Company for any
              ------------------
Transaction and

          4.2.1 If:

          (a) the representations and warranties of the Company with respect to
such Transaction, as set forth in Sections 5.1 through 5.3 below, are not true
in all material respects; or

                                      -6-

<PAGE>

          (b) any merchandise which was the subject of such Transaction is
returned to the Company and the Company, pursuant to its policies concerning
returned merchandise, accepts such merchandise for credit; or

          (c) in order to settle a dispute concerning the nature, quality or
quantity of goods purchased from the Company with the Credit Card, the Company
agrees to refund all or part of the purchase price thereof; then

          4.2.2 The Company:

          (a) shall pay the Bank an amount equal to the face amount of such
Transaction or portion thereof refunded to the customer, less any discount
actually taken by the Bank when it made payment to the Company in consideration
for such Transaction pursuant to Section 4.1.1;

          (b) shall create a written memorandum of such Transaction setting
forth the information required by Section 3 above (a "Credit Memorandum");

          (c) shall transmit the information contained in such Credit Memorandum
to the Bank by the method of electronic transmission referred to in Section
4.1.2 above; and

          (d) subject to Section 4.2.3, shall permit the payment required by
this Section 4.2 to be netted against amounts payable by the Bank pursuant to
Section 4.1.1. The Company shall retain any such Credit Memorandum in the same
manner and for the same time as the charge slip referred to in Section 3.3 and
shall promptly deliver any such Credit Memorandum to the Bank upon its request.
If the Company pays the Bank any amount for a Transaction pursuant to this
Section 4.2 or if such payment is netted against amounts payable by the Bank
pursuant to Section 4.1.1, any remittances relating to such Transaction from the
customer subsequently collected by the Bank shall, to the extent not refunded to
the Cardholder, be credited by the Bank to the Company.

          4.2.3 Notwithstanding clause (d) of Section 4.2.2, if and to the
extent that the Bank so requests in writing at a time when the Bank is required
by the Pooling and Servicing Agreement to make such request, amounts payable by
the Company pursuant to Section 4.2 ("Adjustment Payments") shall no longer be
netted against amounts payable by the Bank pursuant to Section 4.1.1, but
instead the Company shall transfer the amount of each Adjustment Payment to the
Bank by wire transfer of immediately available funds (or, if the aggregate
amount to be transferred pursuant to this Section 4.2 and clause (b) of Section
4.1.4 is less than $10,000, by check), not later than the second Business Day
following the date on which the events giving risk to such Adjustment Payment
occur (and amounts payable by the Bank pursuant to Section 4.1.1 shall be made
without deduction for Adjustment Payments).

          4.3 Other Fees.
              ----------

          4.3.1 Deferred Payment. If any Transaction between the Company and any
                ----------------
Cardholder using a Credit Card is consummated on a deferred payment basis (for
which the period of deferral may not exceed 90 days), then for each month during
the period of deferral, the Company will pay the Bank an amount equal to the
Deferred Payment Rate for such month

                                      -7-

<PAGE>

multiplied by the average daily balance of purchase price so deferred during
such month. For purposes of this Section 4.3, "Deferred Payment Rate" means, for
any month, (i) if the debt of the Bank has an implied investment grade rating at
all times during such month, the average interest rate paid by the Bank to
obtain funds during such month, and (ii) if the debt of the Bank does not have
an implied investment grade rating at all times during such month, the
then-current reference rate or index maintained or provided by a nationally
recognized investment banking firm (which firm shall be reasonably acceptable to
the Company and the Bank) in respect of issuers whose debt has the lowest
investment grade rating.

          4.3.2 Postal Rate Adjustment. The Company agrees to reimburse the Bank
                ----------------------
for any costs incurred by the Bank as a result of changes in postal rates or
rules applicable to mailings to Cardholders after the date hereof; provided that
                                                                   --------
the postal costs and postal discounts applicable to mailings to Cardholders
shall be no less favorable than the postal costs and postal discounts applicable
to comparable mailings to holders of any other credit cards issued by the Bank.
The Bank and the Company agree to use their reasonable efforts to minimize
postal costs and maximize postal discounts.

          4.3.3 Special Projects. With respect to special services provided by
                ----------------
the Bank from time to time with respect to the Business (including, without
limitation, consulting, surveys, gift certificate calls and fulfillment, rebate
fulfillment, telemarketing and special processing or accounting reports required
in connection with promotional activities), the Company will pay to the Bank
amounts to be agreed on a program-by-program basis. To the extent not otherwise
provided for in this Agreement, (i) the Bank shall not incur expenses required
to be paid or reimbursed by the Company for any project in amounts in excess of
$1,000 without having first obtained prior written or oral authorization from
the Company for such expenses; and (ii) the Bank shall not incur expenses
required to be paid or reimbursed by the Company for any project in amounts in
excess of $50,000 without having first obtained prior written authorization from
the Company for such expenses; provided that, in the event any terms of any such
                               --------
written authorization are in conflict with the terms of this Agreement, the
terms of this Agreement shall be controlling.

          4.3.4 Payments. All amounts payable by the Company under this Section
                --------
4.3 shall be paid by wire transfer of immediately available funds within 30 days
after receipt of an invoice for such amounts.

          4.4 Setoffs. The Bank may at any time, in addition to all other rights
              -------
and remedies available to it, setoff against any amount owing to the Company by
the Bank under this Agreement, any amounts owing by the Company to the Bank
under this Agreement.

          4.5 Invoice. The amount of any invoice, prepared and delivered by the
              -------
Bank under this Agreement shall be deemed to be correct, accurate and binding
upon the Company if the Company makes no objection within 30 days after the date
of such invoice; provided that the making of any objection shall not relieve the
                 --------
Company of its obligation to make full payment of the amount set forth on the
related invoice when such amount is otherwise payable pursuant to this Section
4, it being understood that the Company does not waive its rights thereby and
may, subject to Section 10.4, assert a claim with respect to such invoice in an
appropriate proceeding.

                                      -8-

<PAGE>

          Section 5. Representations and Warranties of the Company. The Company
                     ---------------------------------------------
represents and warrants to the Bank that:

          5.1 Valid Transactions. Each Transaction will be completed in
              ------------------
compliance with the provisions of Section 3 and will create a valid, binding and
legally enforceable obligation of the Cardholder whose name is shown on the
Credit Card to pay to the Company the amount shown on the charge slip, which
obligation to the Company will be discharged in full by the payment made to the
Company by the Bank in respect of such Transaction under Section 4.1 above.

          5.2 Accurate Information. Each charge slip will accurately reflect the
              --------------------
Transaction described therein. Each charge slip and Credit Memorandum and any
charge slip or Credit Memorandum information transmitted to the Bank by the
Company will be complete and accurate and in a form deemed necessary by the Bank
to allow Cardholder billing in accordance with applicable law. The Company will
accurately report all returns and other credits to the Bank within the time
period specified in Section 4.

          5.3 No Liens. No amount due to the Company with respect to any
              --------
Transaction will be subject to any lien or encumbrance in favor of any third
party or to any offset, counterclaim or defense of any Person other than the
Bank or its Affiliates.

          5.4 Mark. The use of the Mark by the Bank under this Agreement does
              ----
not infringe the rights of any other Person.

          Section 6. Representations and Warranties of the Bank. The Bank hereby
                     ------------------------------------------
represents and warrants to the Company that:

          6.1 Compliance with Laws. Each Credit Card and the related credit card
              --------------------
agreement, all monthly billing statements and any collection efforts of the Bank
conform and will conform in all material respects with all federal or state laws
or regulations applicable to the extension of credit to or the collection of
amounts from consumers including, without limitation, the Truth-in-Lending Act,
the Equal Credit Opportunity Act, the Fair Credit Reporting Act and federal and
state bankruptcy and debtor relief laws ("Consumer Laws").

          6.2 Non-Contravention. The performance by the Bank of its obligations
              -----------------
under this Agreement will not conflict with or result in a breach of any of the
terms or provisions of, or constitute a default under, any agreement or
instrument to which the Bank is party or by which the Bank is bound, nor will
such performance result in any violation of the provisions of the articles of
association or the by-laws of the Bank or any applicable law or statute or any
order, rule or regulation of any court or governmental agency or body having
jurisdiction over the Bank.

          Section 7. Covenants of the Company. The Company hereby covenants and
                     ------------------------
agrees with the Bank as follows:

          7.1 Credit Card Notices and Communications. The Company will,
              --------------------------------------
consistent with past practices, accept and turn over to the Bank promptly upon
receipt thereof by the Company (i) subject to Section 4.1.4, any payments made
by any Cardholder with respect to any

                                      -9-

<PAGE>

Transaction or any Credit Card and (ii) any notices or other communications
received by the Company with respect to any Credit Card including, without
limitation, customer changes of address and other information on approved forms.

          7.2 Compliance with Applicable Law. The Company will, at all times,
              ------------------------------
comply in all material respects with all Consumer Laws.

          7.3 Rules. The Company shall comply with such written rules and
              -----
operating instructions relating to the use of the Credit Cards, the distribution
of applications, Credit Card security, authorization procedures, "downtime"
procedures and other matters related to this Agreement as the Bank may, from
time to time, promulgate with prior notice to the Company; provided that such
                                                           --------
rules and operating instructions shall be consistent with past practices, with
such changes as shall be approved by the Company in its reasonable discretion.

          7.4 Cardholder Inquiries and Complaints. If a Cardholder makes an
              -----------------------------------
inquiry or complaint to the Company about the nature, quality or quantity of
goods purchased from the Company with a Credit Card, or a Cardholder has made an
inquiry or complaint to the Bank concerning the nature, quality or quantity of
goods purchased from the Company with a Credit Card, the Company shall deal
directly with the Cardholder to resolve any such complaint or inquiry. The
Company shall answer all inquiries from the Bank about complaints made to the
Bank by Cardholders within l0 days after the Company receives an inquiry from
the Bank.

          7.5 Equipment. The Company shall obtain and maintain at its own
              ---------
expense such point of sale and authorization terminals, credit card imprinters
and other items of equipment as are necessary for it to receive authorizations,
transmit charge slip and Credit Memorandum information, process credit
applications and perform its obligations under this Agreement. Such point of
sale and authorization terminals shall be capable of communicating with the
computer equipment maintained by the Bank according to such computer programs
and telecommunications protocols as may be specified by the Bank in its
reasonable discretion from time to time subject to reasonable prior notice of
any change in such equipment or protocols.

          7.6 Exclusivity. The Company may not accept or promote any credit card
              -----------
as payment for its goods or services unless such credit card is a Credit Card, a
proprietary credit card of another division of the Company or any Affiliate of
the Company (whether or not issued by the Bank) or a credit card issued by a
bank or other Person engaged in the business of issuing credit cards to Persons
for the purpose of making payments to third parties generally under such names
as Master Card, Visa, Discover, American Express or Optima. The Company may not
issue its own credit cards or enter into an agreement with any third party under
which credit cards bearing the Mark are issued; provided that after the second
                                                --------
anniversary of the date hereof, the Company shall be entitled to negotiate with
any third party with respect to the issuance of co-branded or affinity bank
credit cards bearing the Mark and to accept any Bona Fide Offer by such third
party if, at least 30 days prior to accepting such Bona Fide Offer, the Company
provides the Bank with an opportunity to submit a competing offer with respect
to the issuance of co-branded or affinity bank credit cards bearing the Mark,
which competing offer, if it has terms at least as favorable to the Company as
such Bona Fide Offer, shall be accepted by the Company in lieu of such Bona Fide
Offer. For purposes of this Section 7.6, "Bona Fide Offer" means an offer to the
Company with respect to a program of at least two years' duration for the

                                      -10-

<PAGE>

issuance of co-branded or affinity bank credit cards that is, in the Company's
reasonable judgment, generally competitive in light of marketplace conditions
existing at the time (such marketplace conditions to include, without
limitation, other offers with respect to co-branded or affinity bank credit
cards being made to the Company, its Affiliates and other retail or catalogue
merchants).

          7.7 Obsolete Materials. The Company shall reimburse the Bank for the
              ------------------
cost of replacing reasonable amounts of obsolete forms and other materials if
such replacement is requested by the Company due to changes in the Mark or in
the logo, colors or styles used to identify or promote the Business.

          Section 8. Covenants of the Bank. The Bank hereby covenants and agrees
                     ---------------------
with the Company as follows:

          8.1 Compliance with Applicable Law. The Bank will, in issuing,
              ------------------------------
billing, administering, and collecting with respect to the Credit Cards and at
all other times, comply in all material respects with all Consumer Laws.

          8.2 Collection. The Bank will use efforts to collect from each
              ----------
Cardholder the purchase price and additional taxes and other charges of
Transactions consistent with past practices and with its efforts to collect
accounts receivable under other credit cards issued by it; provided that the
                                                           --------
Bank will initiate collection of any account receivable under a Credit Card at
or before the time such account receivable is 60 days past due. The Bank will,
consistent with past practices, determine the use and timing of dunning letters,
statement messages and collection agents and will manage all written-off
accounts (including, without limitation, the management of outside collection
agencies). The Bank may implement reasonable variances from past collection
practices after prior notice to and consultation with the Company.

          8.3 Performance Standards. In performing its obligations under this
              ---------------------
Agreement, subject to Section 12.11, the Bank shall comply with the performance
standards set forth in Exhibit 8.3, as such performance standards may be
modified from time to time at the reasonable request of the Bank or the Company.
Within 10 days after the end of each fiscal month, the Bank will deliver to the
Company a compliance certificate of the chief executive officer or chief
financial officer of the Bank setting forth in reasonable detail data
demonstrating compliance during such calendar month with such performance
standards. Enhancements to, and modifications or upgrades of, the computer
processing, payment, billing and information services provided by the Bank will
be made from time to time at the reasonable request of the Company. Any such
enhancements, modifications or upgrades shall, to the extent requested by the
Company, be made on terms to be agreed upon.

          8.4 Force Majeure Event. After the occurrence of a Force Majeure Event
              -------------------
(as defined in Section 12.11) which disrupts the availability of the services
provided hereunder, the Bank may elect to reestablish the availability of such
services. If any such Force Majeure Event comparably disrupts the performance of
services similar to the services provided hereunder with respect to one or more
other credit cards issued by the Bank, then the Bank shall reestablish the
availability of such services to the same extent and within the same timetable
under comparable circumstances as the comparable services are reestablished with
respect to such other credit

                                      -11-

<PAGE>

cards. The Bank shall promptly notify the Company of any Force Majeure Event and
shall inform the Company whether it will reestablish services and the timetable
therefor. If the Bank chooses not to reestablish or take measures to reestablish
such services within a reasonable period of time as would be indicated by sound
business practice, the Company shall be free to obtain such services from any
supplier thereof.

          Section 9. Property Rights.
                     ---------------

          9.1 Rights of the Company. The Company is the owner of the names and
              ---------------------
addresses of customers of the Business; provided that (i) as set forth in
                                        --------
Section 9.2, the Bank is also the owner of such information with respect to
customers of the Business who are also Cardholders and (ii) The Limited, Inc.
("The Limited") is also the owner of such information with respect to customers
of the Business until the second anniversary of the date, if any, on which the
Company ceases to be an Affiliate of The Limited.

          9.2 Rights of Bank. Except as set forth in Section 9.1, the Bank is
              --------------
the owner of all information relating to the Cardholders (including names and
addresses) and the Credit Cards, the copyright to all written material contained
in any credit card agreements, applications, billing statements and other forms
used by the Bank in the administration of its agreements with the Cardholders,
all credit scoring systems and all policies of credit insurance issued to the
Bank with respect to any Cardholder; provided that the Bank shall not be
                                     --------
entitled to sell, rent or otherwise disclose any information relating to the
Cardholders to any third party other than (i) Affiliates of the Company, (ii)
Persons who, in the sole judgment of The Limited, do not compete, directly or
indirectly, with any retail or catalogue business conducted by The Limited or
any of its Affiliates and (iii) in the case of disclosure, credit agencies.
Subject to Section 9.3, the Company will not have any rights in any information
or property of the Bank; provided that the Bank will provide the Company with
                         --------
such information the Bank owns with respect to Cardholders as the Company may
reasonably request in order to develop potential marketing or credit strategies.

          9.3 Database. (a) It is the intention of the parties that the Bank
              --------
will manage, maintain and develop an information marketing database (the
"Database") at its own expense, subject to a mutually satisfactory agreement
with the Company pursuant to which (i) the Company will agree to utilize the
Database, (ii) the Database will be accessible from the Company's offices and
(iii) the Bank will provide the Company with information maintained as part of
the Database on terms that are no less favorable than those offered by the Bank
to any other recipient of comparable information.

          (b) Notwithstanding the foregoing, the Bank will, from time to time at
the request of the Company, and without charge, promptly provide the Company
with a list of the names and addresses of all Cardholders, all holders of other
proprietary credit cards of the Company or any Affiliate of the Company (if
issued by the Bank) and all other customers of the Business, any other business
of the Company and the business of any other Affiliate of the Company. The
Company shall reimburse the Bank for its costs of producing and shipping such
list in the format required by the Company within 30 days after receipt of a
request for such reimbursement from the Bank.

                                      -12-

<PAGE>

          (c) Subject to Section 9.2, the Bank may make the Database available,
and provide information marketing services to, third parties on terms reasonably
determined by the Bank; provided that (i) the allocation among the Bank, the
                        --------
Company and The Limited of fees charged by the Bank to such third parties shall
be agreed on a program-by-program basis or, in the case of programs existing on
the date hereof, continued consistent with past practices and (ii) the Bank may
not make the Database available, or provide information marketing services to,
any Person who, in the sole judgment of The Limited, competes, directly or
indirectly, with any retail or catalogue business conducted by The Limited or
any of its Affiliates.

          9.4 Envelope Stuffing.
              -----------------

          9.4.1 Subject to the right of the Bank to include in mailings to
Cardholders periodic billing statements and any legal notices which the Bank
believes are necessary or appropriate to send to Cardholders, the Company shall
have the right to have materials advertising its products and services included
in the envelopes containing the periodic statements. Such materials shall
advertise only products and services related to the Business, shall (unless the
Company provides the Bank with notice as provided below) be limited to seven
panels per envelope and shall conform to size requirements established from time
to time by the Bank with reasonable prior notice of any changes. The Company
shall use reasonable efforts (i) to notify the Bank at least 15 days before the
proposed date of any such inclusion and shall provide the Bank with a draft copy
of any such advertising material at the time it notifies the Bank of such
mailing and (ii) to provide the Bank with a seasonal marketing plan at least 30
days before the beginning date of each Season. The Company shall provide the
Bank with the materials to be included in the mailing not less than two Business
Days prior to the initial insertion date. If the Company does not notify the
Bank of any such inclusion at least seven days before the proposed date of such
inclusion or if the material included does not take up the available space, the
Bank may utilize the space remaining inside the envelopes for its own purposes;
provided that (i) unless the Company provides the Bank with notice at least 45
--------
days before the proposed inclusion date of the Company's intent to utilize more
than seven panels per envelope, the Bank shall be entitled to utilize at least
three panels (or two panels and one "bangtail" remittance envelope) per envelope
for its own purposes and (ii) all materials included by the Bank shall be
subject to the approval of the Company, which approval shall not be unreasonably
withheld.

          9.4.2 The Bank shall have the exclusive right to include in any
mailing to Cardholders materials advertising products and services not related
to the Business and the allocation between the Bank and the Company of the
revenues generated thereby shall be agreed on a program-by-program basis or, in
the case of programs existing on the date hereof, continued consistent with past
practices; provided that such products and services and the related advertising
           --------
materials shall be subject to the approval of the Company, which approval shall
not be unreasonably withheld or delayed (it being understood that the Company
may withhold such approval if it determines in its sole discretion that the
advertising of such products or services is inconsistent with the image of the
Business).

          9.4.3 Notwithstanding the foregoing, (i) the Bank shall have the right
to use its own "bangtail" remittance envelopes to promote credit life insurance
to existing Cardholders no more than four times per year or two times per Season
and (ii) all materials used, or sent to

                                      -13-

<PAGE>

Cardholders, by the Bank under existing programs of the Bank (including, but not
limited to, credit life insurance) shall not be subject to the approval of the
Company.

          9.4.4 The Bank shall provide timely specifications (including size and
weight requirements) for all statement inserts, credit card carriers and
"bangtail" remittance envelopes.

          Section 10. Indemnification; Claims and Actions.
                      -----------------------------------

          10.1 Indemnification by the Company. The Company hereby indemnifies
               ------------------------------
the Bank, its Affiliates and the directors, officers, employees and agents of
the Bank or any Affiliate of the Bank (each, a "Related Party") against, and
agrees to hold them harmless from, any and all losses, claims, damages and
liabilities (including, without limitation, the legal fees and other expenses
reasonably incurred in connection with any suit, action or proceeding or any
claim asserted) ("Damages") incurred or suffered by any of them arising out of
or in any way related to any misrepresentation, breach of any warranty or
nonperformance of any covenant made by the Company under this Agreement or
relating to any personal or bodily injury or property damage alleged to be
caused by the sale of goods or rendering of services by the Company.

          10.2 Indemnification by the Bank. The Bank hereby indemnifies the
               ---------------------------
Company and its Related Parties against, and agrees to hold them harmless from,
any and all Damages incurred or suffered by any of them arising out of or in any
way related to any misrepresentation, breach of any warranty, or nonperformance
of any covenant made by the Bank under this Agreement.

          10.3 Third Party Claims.
               ------------------

          10.3.1 The Bank shall not be liable to the Company for or in
connection with any claim made against the Company by any other Person relating
in any manner to this Agreement or to any services or any other transactions
contemplated hereby (other than (i) claims based upon the Bank's failure to
perform its obligations under this Agreement, its or any of its Related Parties'
negligence or willful misconduct or its failure to comply with any law or
regulation (including, without limitation, any Consumer Law), (ii) claims by
employees or subcontractors of the Bank arising from the performance of services
under this Agreement (other than claims based upon the Company's or any if its
Related Parties' negligence or willful misconduct), (iii) claims relating to
acts or omissions of the Bank and its agents in connection with the collection
of amounts owing from Cardholders and (iv) claims relating to the submission by
the Bank or its agents of data concerning Cardholders to credit agencies), even
if the Bank has been advised of the possibility of such claims.

          10.3.2 The Company shall not be liable to the Bank for or in
connection with any claim made against the Bank by any other Person relating in
any manner to this Agreement or to any services or other transactions
contemplated hereby (other than (i) claims based upon the Company's failure to
perform its obligations under this Agreement, its or any of its Related Parties'
negligence or willful misconduct or its failure to comply with any law or
regulation (including, without limitation, any Consumer Law), (ii) claims by
employees or subcontractors of the Company arising from this Agreement and (iii)
claims relating to goods purchased from the Company), even if the Company has
been advised of the possibility of such claims.

                                      -14-

<PAGE>

          10.4 Dispute Resolution and Actions. The Bank and the Company shall
               ------------------------------
use their reasonable best efforts to resolve informally any claim of either
party under this Agreement. No action at law or in equity may be instituted by
any party with respect to any such claim unless such party has satisfied its
obligation under the first sentence of this Section 10.4.

          10.5 Limitation on Actions. No action against either party, regardless
               ---------------------
of form, arising out of or incidental to the matters contemplated by this
Agreement, may be brought by the other party more than one year after the event
giving rise to such cause of action occurred and is known or upon the exercise
of reasonable diligence should have been known to the injured party.

          10.6 Reimbursement for Losses. If, as a result of any claim made by
               ------------------------
the Bank against any third party (including, but not limited to, an insurer),
the Bank actually receives from such third party cash proceeds (or non-cash
proceeds, whether in the form of goods or services) which represent, in whole or
in part, compensation for or reimbursement of losses or costs actually incurred
by the Company, then the Bank will hold that portion of such proceeds fairly
allocable to the Company (taking into consideration all losses or costs actually
incurred by all parties for whose benefit such payments have been received) in
trust on behalf of the Company and will promptly pay over to the Company such
allocable amount of any such cash proceeds (or, as to non-cash proceeds, the
allocable potion or, at the discretion of the Bank, the cash equivalent
thereof).

          10.7 Survival. The provisions of this Section 10 shall survive the
               --------
termination of this Agreement.

          Section 11. Termination.
                      -----------

          11.1 Term. This Agreement shall remain in effect until the tenth
               ----
anniversary of the date hereof, shall be automatically extended until the
twelfth anniversary of the date hereof if the Company does not give at least 12
months' prior written notice of its objection to such extension and shall be
further automatically extended in successive two-year increments if the Bank or
the Company does not give at least 12 months' prior written notice of its
objection to such extension, unless earlier terminated (a) by the Bank or the
Company in the event of a material breach by the other party of any of such
other party's obligations under this Agreement if any such breach remains
uncured 30 days after written notice thereof to such party, (b) automatically in
the event that the Bank or the Company commences a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to
itself or its debts under any bankruptcy, insolvency or other similar law now or
hereinafter in effect, seeks the appointment of a trustee, receiver, liquidator,
custodian or other similar official of it or any substantial part of its assets,
consents to any such relief or to the appointment of or taking possession by any
such official in an involuntary case or other proceeding commenced against it,
makes a general assignment for the benefit of creditors, or fails generally to
pay its debts as they become due, or (c) by the Company upon not less than 60
days' prior written notice to the Bank at any time after the sixth anniversary
of the date hereof if, based on the application of the attached matrix, the
applicable discount rate exceeds the highest discount rate in such matrix and
the costs to the Company under this Agreement are substantially higher than the
costs that would be incurred by the Company for comparable credit card services
over the remaining term of this

                                      -15-

<PAGE>

Agreement from an independent third-party financial institution; provided that
                                                                 --------
the Company shall not be entitled to terminate this Agreement pursuant to clause
(c) unless the Company provides the Bank with a written description of the
material terms on which such third party financial institution proposes to
provide such services and is entitled to submit a counter-proposal within 30
days of receipt of such description. If the Bank submits a counter-proposal with
terms substantially similar to those set forth in such third party's proposal or
agrees to maintain the discount rate at the highest discount rate in the
attached matrix, this Agreement shall remain in full force and effect, modified
as may be necessary to reflect the terms included in the Bank's
counter-proposal. Subject to Section 11.2, the termination of this Agreement
shall not affect the obligations of the Cardholders to the Bank, the obligation
of the Company and the Bank to make the payments required under Section 4 with
respect to Transactions that occurred before the date of termination, the rights
of the Bank under Sections 4.4, 7.4 and 9.1 and the rights of the Company under
Section 9.1, Sections 10, 11 and 12 of this Agreement shall survive any such
termination.

          11.2 Effect of Termination. (a) Upon termination of this Agreement,
               ---------------------
the Company will have the option to purchase the then-outstanding Credit Card
account balances not previously written-off by the Bank (subject to the terms of
any securitization of such account balances) at the face amount thereof, without
recourse to the Bank, and will be provided with all related account information
and other account data; provided that the Company will be required to purchase
                        --------
such then-outstanding Credit Card account balances on such terms if the Company
objects to any automatic extension of this Agreement pursuant to Section 11.1.
All payments by the Company pursuant to this Section 11.2 shall be made not
later than one Business Day after termination of this Agreement by wire transfer
of immediately available funds to an account notified by the Bank to the Company
not less than two Business Days prior to the payment date. Upon any termination
of this Agreement, (i) the Company (at its sole expense) shall notify all
Cardholders that the Bank is no longer the processor of their Credit Card
accounts and (ii) the Company and the Bank shall cooperate in facilitating the
transition to a new processor.

          (b) Upon receipt of any notice of termination from the Company, or
delivery of any notice of termination by the Bank, the Bank shall divide all
then-outstanding Credit Card receivables generated through the use of Credit
Cards under the "Lerner" and "Lane Bryant" Marks into separate retail and mail
order memo account balances based on the ratio of retail and mail order
purchases by the relevant Cardholder during the 12 months preceding the month in
which such notice is received or delivered by the Bank, as the case may be.
During the period between the delivery of such notice and termination of this
Agreement, purchases and returns through such Credit Cards shall be applied to
the relevant account balance based upon the source of the relevant purchase and
payments, finance charges and any other adjustments will be applied to the
separate balances based upon mail order/retail account balance ratios of such
accounts at the end of the preceding month. Upon termination of this Agreement,
the Company will have the option to purchase the then-outstanding "Lerner" and
"Lane Bryant" retail account balances in accordance with subsection (a) of this
Section 11.2.

          11.3 Extension. Any services which the parties hereto mutually agree
               ---------
to be rendered after the termination of this Agreement shall be rendered
pursuant to all of the terms and provisions of this Agreement.

                                      -16-

<PAGE>

          Section 12. Miscellaneous.
                      -------------

          12.1 Notices. All notices, requests and other communications to any
               -------
party hereunder shall be in writing (including telecopy or similar writing) and
shall be given, if to the Company, to:

          Lane Bryant, Inc.
          Three Limited Parkway
          Columbus, Ohio 43230
          Attn:General Counsel
          Telecopy: 614-479-7188

with a copy to:

          The Limited, Inc.
          Three Limited Parkway
          Columbus, Ohio 43230
          Attn: General Counsel
          Telecopy: 614-479-7188

and a copy to:

          Davis Polk & Wardwell
          450 Lexington Avenue
          New York, New York 10017
          Attn: Dennis S. Hersch
          Telecopy: 212-450-4800

and if to the Bank, to:

          World Financial Network National Bank
          4590 East Broad Street
          Columbus, Ohio 43213
          Attn: Daniel T. Groomes
          Telecopy: 614-755-3418

or to such other address or telecopy number and with such other copies, as such
party may hereafter specify for the purpose by notice to the other parties. Each
such notice, request or other communication shall be effective (i) if given by
telecopy, when such telecopy is transmitted to the telecopy number specified in
this Section and evidence of receipt is received or (ii) if given by any other
means, upon delivery or refusal of delivery at the address specified in this
Section 12.1.

          12.2 Amendments; No Waivers.
               ----------------------

          12.2.1 Any provision of this Agreement may be amended only if such
amendment is in writing and signed by all parties thereto.

                                      -17-

<PAGE>

          12.2.2 No failure or delay by any party in exercising any right, power
or privilege under this Agreement shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

          12.3 Expenses. All costs and expenses incurred in connection with this
               --------
Agreement or the transactions contemplated hereby shall be paid by the party
incurring such cost or expense.

          12.4 Successors and Assigns. The provisions of this Agreement shall be
               ----------------------
binding upon and inure to the benefit of the parties and their respective
successors and assigns; provided that no party may assign, delegate or otherwise
                        --------
transfer any of its rights or obligations under this Agreement without the
consent of the other party. Notwithstanding the foregoing, (i) the Bank may from
time to time assign any or all of its rights and obligations hereunder to any
Affiliate of the Bank, provided that any such assignee of the Bank's obligations
hereunder shall have the capability to perform such obligations without
impairing the quality of the services provided to the Company, (ii) the Company
shall assign or otherwise transfer all of its rights and obligations under this
Agreement (A) to the purchaser of all or substantially all of the assets of the
Business or (B) to any corporation which is a successor (whether by merger,
consolidation or otherwise) to the Company or any successor (whether by merger,
consolidation or otherwise) thereto, in each case subject to the execution by
such assignee or transferee of an agreement to be bound by the provisions of
this Agreement and (iii) the Bank may from time to time sell accounts receivable
for securitization, retaining its processing and servicing obligations with
respect thereto (it being understood that (A) the purchaser of such accounts
receivable shall have no recourse against the Company for any reason whatsoever
and (B) the Bank hereby indemnifies the Company and its Related Parties against,
and agrees to hold them harmless from, any and all Damages incurred or suffered
by any of them in connection with any claims made by such purchaser).

          12.5 Governing Law. This Agreement shall be construed in accordance
               -------------
with and governed by the law of the State of New York (without regard to the
choice of law provisions thereof).

          12.6 Counterparts; Effectiveness. This Agreement may be signed in any
               ---------------------------
number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument. This
Agreement shall become effective when each party hereto or thereto shall have
received a counterpart hereof signed by the other parties hereto.

          12.7 Entire Agreement. This Agreement constitutes the entire agreement
               ----------------
among the parties with respect to the subject matter hereof and supersedes all
prior agreements, understandings and negotiations, both written and oral,
between the parties with respect to such subject matter. No representation,
inducement, promise, understanding, condition or warranty not set forth herein
has been made or relied upon by any party hereto. Neither this Agreement nor any
provision thereof is intended to confer upon any Person other than the parties
any rights or remedies hereunder.

                                      -18-

<PAGE>

          12.8 Jurisdiction. Any suit, action or proceeding seeking to enforce
               ------------
any provision of, or based on any matter arising out of or in connection with,
this Agreement or the transactions contemplated thereby may be brought against
any of the parties in the United States District Court for the Southern District
of New York or any state court sitting in the City of New York, Borough of
Manhattan, and each of the parties hereby consents to the exclusive jurisdiction
of such court (and of the appropriate appellate courts) in any such suit, action
or proceeding and waives any objection to venue laid therein. Process in any
such suit, action or proceeding may be served on any party anywhere in the
world, whether within or without the State of New York. Without limiting the
foregoing, the parties agree that service of process upon such party at the
address referred to in Section 12.1, together with written notice of such
service to such party, shall be deemed effective service of process upon such
party.

          12.9 Captions. The captions herein are included for convenience of
               --------
reference only and shall be ignored in the construction or interpretation
hereof.

          12.10 Defined Terms. The following terms, as used herein, shall have
                -------------
the following meanings:

          12.10.1 "Affiliate" means, with respect to any Person, any Person
directly or indirectly controlling, controlled by, or under common control with
such other Person. For purposes of this definition, "control" when used with
respect to any Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

          12.10.2 "Business Day" means a day other than a Saturday, Sunday or
other day on which commercial banks in New York, New York or Columbus, Ohio are
authorized or required by law to close.

          12.10.3 "Person" means an individual, a corporation, a partnership, an
association, a trust or other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.

          12.10.4 "Season" means (i) the period from the first day of the fiscal
month of February to the last day of the fiscal month of July and (ii) the
period from the first day of the fiscal month of August to the last day of the
fiscal month of January.

          12.11 Force Majeure. Notwithstanding the provisions of Section 8.3,
                -------------
neither the Hank nor its affiliates shall be liable in any manner to the Company
for any failure to perform their obligations under this Agreement resulting in
any manner from delay, failure in performance, loss or damage due to fire,
strike, embargo, explosion, power blackout, earthquake, flood, war, the
elements, labor disputes, civil or military authority, acts of God, public
enemy, inability to secure fuel, acts or omissions of carriers or other causes
beyond their reasonable control, whether or not similar to any of the foregoing
(a "Force Majeure Event").

                                      -19-

<PAGE>

          IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized officers effective on the day and year first
above written.

                                         WORLD FINANCIAL NETWORK NATIONAL BANK

                                         By:
                                            ------------------------------------
                                         Name:
                                         Title:

                                         LANE BRYANT, INC.

                                         By:
                                            ------------------------------------
                                         Name:
                                         Title:

                                         SIERRA NEVADA FACTORING, INC.

                                         By:
                                            ------------------------------------
                                         Name:
                                         Title:

                                      -20-<PAGE>

                                                                  Exhibit 10.2.8

                             CHARMING SHOPPES, INC.
                      1993 EMPLOYEES' STOCK INCENTIVE PLAN
                           RESTRICTED STOCK AGREEMENT

     Agreement dated as of February 11, 2002, between CHARMING SHOPPES, INC.
(the "Company") and [first] [last] (the "Employee").

     It is agreed as follows:

1.   Grant of Restricted Stock; Consideration.
     ----------------------------------------

     The Company hereby confirms the grant, under the Company's 1993 Employees'
Stock Incentive Plan (the "Plan"), to Employee on the date of this Restricted
Stock Agreement (the "Date of Grant") of [shares] shares of the Company's
common stock, par value $0.10 per share ("Shares"), pursuant to Section 6(d) of
the Plan, and subject to restrictions as set forth herein and in the Plan
("Restricted Stock"). Employee shall be required to pay no cash consideration
for the grant of the Restricted Stock, but Employee's prior services to the
Company, performance of services to the Company prior to the expiration of
applicable restrictions relating to the Restricted Stock and otherwise during
the term of his or her employment, and his or her agreement to abide by the
terms set forth in the Plan, this Restricted Stock Agreement (the "Agreement"),
and any Rules and Regulations under the Plan, shall be deemed to be
consideration for this grant of Restricted Stock.

2.   Incorporation of Plan by Reference.
     ----------------------------------

     The Restricted Stock has been granted to Employee under the Plan, a copy of
which (excluding exhibits) is attached hereto. All of the terms, conditions and
other provisions of the Plan are hereby incorporated by reference into this
Agreement. Capitalized terms used in this Agreement but not defined herein shall
have the same meanings as in the Plan. If there is any conflict between the
provisions of this Agreement and the provisions of the Plan, the provisions of
the Plan shall govern. Employee hereby accepts the grant of Restricted Stock,
acknowledges receipt of the attached copy of the Plan, and agrees to be bound by
all the terms and provisions hereof and thereof (as presently in effect or
hereafter amended), and by all decisions and determinations of the Board or
Committee under the Plan.

3.   Restrictions on Restricted Stock.
     --------------------------------

     (a) Restrictions Generally. Until they lapse in accordance with Section
         ----------------------
3(b), 3(c), or 5(a), the following restrictions (the "Restrictions") shall apply
to the Restricted Stock: (1) Employee shall have no right to sell, transfer,
assign, pledge, or otherwise encumber or dispose of the Restricted Stock (except
for transfers and forfeitures to the Company); and (2) the Restricted Stock
shall be subject to the risk of forfeiture as set forth in Section 3(b).
Employee shall be entitled to receive dividends and distributions on the
Restricted Stock when, as, and if declared and paid on Shares, provided that,
unless otherwise determined by the Committee, dividends and distributions shall
be deemed reinvested in additional Restricted Stock at the Fair Market Value of
Shares on the payment date, which additional Restricted Stock shall be subject
to the same Restrictions as apply to the original Restricted Stock; Employee
shall be entitled to vote Restricted Stock on any matter submitted to a vote of
holders of Common Stock; and Employee shall have all other rights of a
shareholder of the Company except as otherwise expressly limited or provided
under this Section 3.

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

                THE DATE OF GRANT OF THIS OPTION IS: [grantdate]
                           GRANT NUMBER: [grantnumber]

<PAGE>

     (b) Forfeiture. Unless otherwise determined by the Committee, if Employee's
         ----------
employment terminates and he or she thereafter is not an employee of the Company
or any of its subsidiaries (a "Termination"), and such Termination is for any
reason other than due to death, permanent disability, or involuntary termination
by the Company for reasons other than "Cause," the Restricted Stock as to which
Restrictions have not lapsed at or before such Termination shall be forfeited at
the time of such Termination. Accordingly, Employee's voluntary Termination or
Termination by the Company for Cause will result in all shares of Restricted
Stock which remain subject to Restrictions being immediately forfeited. In the
event of Employee's Termination due to death or permanent disability, all
Restrictions on the Restricted Stock shall lapse at the time of such Termination
(i.e., none of the Restricted Stock will be forfeited). In the event of
 ----
Employee's Termination due to involuntary termination by the Company for reasons
other than "Cause," the Restrictions on those shares of Restricted Stock as to
which Restrictions would have lapsed at the next anniversary of the Date of
Grant will lapse on an accelerated basis at the time of such Termination (i.e.,
                                                                          ----
if Termination is more than two (2) years after the Date of Grant, one
additional tranche of the Restricted Stock will become non-forfeitable), and
those shares of Restricted Stock as to which Restrictions have not lapsed at or
before such Termination (i.e., any tranche as to which Restrictions would have
                         ----
lapsed at an anniversary of the Date of Grant after the next anniversary date)
shall be forfeited at the time of such Termination. For purposes of this
Agreement, "Cause" shall mean Employee's chronic neglect, refusal or failure to
fulfill his or her employment duties and responsibilities, other than for
reasons of sickness, accident or other similar causes beyond Employee's control.
Such neglect, refusal or failure shall be determined in the sole and reasonable
judgment of the Committee. For purposes of this Agreement, the existence of a
"permanent disability" shall be determined by, or in accordance with criteria
and standards adopted by, the Committee.

     (c) Expiration of Restrictions. Unless the Restrictions on Restricted Stock
         --------------------------
lapse earlier under Section 3(b) or 5(a), the Restrictions shall lapse as to
thirty (30%) percent of the total number of shares of Restricted Stock on the
third anniversary of the Date of Grant, an additional thirty (30%) percent of
the total number of shares of Restricted Stock on the fourth anniversary of the
Date of Grant and the remaining forty (40%) percent of the total number of
shares of Restricted Stock on the fifth anniversary of the Date of Grant. Upon
expiration of the Restrictions on any Restricted Stock, the Company shall
promptly deliver to Employee one or more certificates representing such Shares
(which shall no longer be deemed to be Restricted Stock), with any legend
referring to the Restrictions removed from such certificate(s), or shall cause
such Shares to be delivered to a broker or bank which maintains an account for
Employee or Employee's designee, for deposit to such account.

     (d) Certificates Representing Restricted Stock. Restricted Stock shall be
         ------------------------------------------
evidenced by issuance of one or more certificates in the name of Employee,
bearing an appropriate legend referring to the terms, conditions, and
Restrictions applicable hereunder. Unless otherwise determined by the Committee,
such certificates shall remain in the physical custody of the General Counsel of
the Company or his designee until such time as the Restrictions on such shares
have lapsed. In addition, Restricted Stock shall be subject to such
stop-transfer orders and other restrictive measures as the General Counsel of
the Company shall deem advisable under federal or state securities laws, rules
and regulations thereunder, and the rules of the Nasdaq National Market System
or any national securities exchange on which Common Stock is then quoted or
listed, or to implement the Restrictions, and the General Counsel may cause a
legend or legends to be placed on any such certificates to make appropriate
reference to the Restrictions.

     (e) Stock Powers. Employee agrees to execute and deliver to the Company one
         ------------
or more stock powers, in such form as may be specified by the General Counsel,
authorizing the transfer of the Restricted Stock to the Company, at the Date of
Grant of the Restricted Stock or upon request at any time thereafter.

4.   Tax Withholding.
     ---------------

     Employee agrees to remit to the Company and any subsidiary, and authorizes
the Company and any subsidiary to deduct from any payment to be made to Employee
hereunder if such remittance has not been made, any amount that federal, state,
local, or foreign tax law requires to be withheld with respect to the Restricted
Stock or lapse of restrictions thereon. If and to the extent permitted by the
Board or Committee at the time such tax withholding may be required, Employee
will be entitled to elect to have the Company withhold from the number of Shares
as to which the risks of forfeiture are then to lapse, or to elect to deliver to
the Company from shares of the Company's common stock owned separately by
Employee, a number of whole shares up to but not exceeding that

                                       2

<PAGE>
number which has a Fair Market Value nearest to but not exceeding the amount of
federal, state and local taxes required to be withheld as a result of the lapse
of such risks of forfeiture, to the extent, if any, permitted under rules and
regulations adopted by the Committee and in effect at the time of the lapse of
such risks of forfeiture. In such case, the Shares withheld or the shares
surrendered will be valued at the Fair Market Value determined in accordance
with procedures for valuing shares as set forth in rules and regulations adopted
by the Committee and otherwise in effect at the time of lapse of such risks of
forfeiture.

5.   Change of Control Provisions.
     ----------------------------

     (a) Acceleration of Expiration of Restrictions. In the event of a Change of
         ------------------------------------------
Control at a time that Employee is employed by the Company or any of its
subsidiaries and after the date of grant of the Restricted Stock, the
Restrictions on the Restricted Stock shall lapse immediately prior to the Change
of Control.

     (b) Definitions of Certain Terms. For purposes of this Agreement, the
         ----------------------------
following definitions shall apply:

               (1) "Beneficial Owner," "Beneficially Owns," and "Beneficial
     Ownership" shall have the meanings ascribed to such terms for purposes of
     Section 13(d) of the Exchange Act and the rules thereunder, except that,
     for purposes of this Section 5, "Beneficial Ownership" (and the related
     terms) shall include Voting Securities that a Person has the right to
     acquire pursuant to any agreement, or upon exercise of conversion rights,
     warrants, options, or otherwise, regardless of whether any such right is
     exercisable within 60 days of the date as of which Beneficial Ownership is
     to be determined.

               (2) "Change of Control" means and shall be deemed to have
     occurred if
                    (i) any Person, other than the Company or a Related Party,
          acquires directly or indirectly the Beneficial Ownership of any Voting
          Security of the Company and immediately after such acquisition such
          Person has, directly or indirectly, the Beneficial Ownership of Voting
          Securities representing 20 percent or more of the total voting power
          of all the then-outstanding Voting Securities; or

                    (ii) those individuals who as of the Date of Grant
          constitute the Board or who thereafter are elected to the Board and
          whose election, or nomination for election, to the Board was approved
          by a vote of at least two-thirds (2/3) of the directors then still in
          office who either were directors as of the Date of Grant or whose
          election or nomination for election was previously so approved, cease
          for any reason to constitute a majority of the members of the Board;
          or

                    (iii) there is consummated a merger, consolidation,
          recapitalization, or reorganization of the Company, a reverse stock
          split of outstanding Voting Securities, or an acquisition of
          securities or assets by the Company (a "Transaction"), other than a
          Transaction which would result in the holders of Voting Securities
          having at least 80 percent of the total voting power represented by
          the Voting Securities outstanding immediately prior thereto continuing
          to hold Voting Securities or voting securities of the surviving entity
          having at least 60 percent of the total voting power represented by
          the Voting Securities or the voting securities of such surviving
          entity outstanding immediately after such Transaction and in or as a
          result of which the voting rights of each Voting Security relative to
          the voting rights of all other Voting Securities are not altered; or

                    (iv) there is implemented or consummated a plan of complete
          liquidation of the Company or sale or disposition by the Company of
          all or substantially all of the Company's assets other than any such
          transaction which would result in Related Parties owning or acquiring
          more than 50 percent of the assets owned by the Company immediately
          prior to the transaction.

               (3) "Person" shall have the meaning ascribed for purposes of
     Section 13(d) of the Exchange Act and the rules thereunder.

                                       3

<PAGE>
               (4) "Related Party" means (i) a majority-owned subsidiary of the
     Company; or (ii) a trustee or other fiduciary holding securities under an
     employee benefit plan of the Company or any majority-owned subsidiary of
     the Company; or (iii) a corporation owned directly or indirectly by the
     shareholders of the Company in substantially the same proportion as their
     ownership of Voting Securities; or (iv) if, prior to any acquisition of a
     Voting Security which would result in any Person Beneficially Owning more
     than ten percent of any outstanding class of Voting Security and which
     would be required to be reported on a Schedule 13D or an amendment thereto,
     the Board approved the initial transaction giving rise to an increase in
     Beneficial Ownership in excess of ten percent and any subsequent
     transaction giving rise to any further increase in Beneficial Ownership;
     provided, however, that such Person has not, prior to obtaining Board
     approval of any such transaction, publicly announced an intention to take
     actions which, if consummated or successful (at a time such Person has not
     been deemed a "Related Party"), would constitute a Change of Control.

               (5) "Voting Securities" means any securities of the Company which
     carry the right to vote generally in the election of directors.

6.   Miscellaneous.
     -------------

     This Agreement shall be binding upon the heirs, executors, administrators,
and successors of the parties. This Agreement constitutes the entire agreement
between the parties with respect to the Restricted Stock granted hereby, and
supersedes any prior agreements or documents with respect to such Restricted
Stock. No amendment, alteration, suspension, discontinuation, or termination of
this Agreement which may impose any additional obligation upon the Company or
materially and adversely affect the rights of Employee with respect to the
Restricted Stock shall be valid unless in each instance such amendment,
alteration, suspension, discontinuation, or termination is expressed in a
written instrument duly executed in the name and on behalf of the Company and by
Employee.

                                                          CHARMING SHOPPES, INC.

                                           BY:
                                              ----------------------------------
                                                            (Authorized Officer)

                                                                       EMPLOYEE:

                                              ----------------------------------
                                                                   [first][last]

Attachments: 1993 Employees' Stock Incentive Plan
             Form of Stock Power

                                   STOCK POWER

                                       4

<PAGE>

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto Charming Shoppes, Inc. [shares] shares of Common Stock, $0.10 par value per
share, of Charming Shoppes, Inc., a Pennsylvania corporation (the
"Corporation"), registered in the name of the undersigned on the books and
records of the Corporation, and does hereby irrevocably constitute and appoint
Colin D. Stern and Anthony A. DeSabato, and each of them, attorneys, to transfer
the Common Stock on the books of the Corporation, with full power of
substitution in the premises.

                                              ----------------------------------
                                                                   [first][last]

                                              Date:
                                                   -----------------------------

                                       5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}]]