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**EXHIBIT      10.8**

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**CHARMING      SHOPPES, INC.**

**2003      Non-Employee Directors Compensation Plan**

**Amended      and Restated Effective June 21, 2007**

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**1.**
**Purpose      and Scope of the Plan**

*Purpose.*

*Effect      of Amendment and Restatement of the Plan*

*Grandfathered      Accounts.  *

*Relation      of Plan to Other Director Compensation. *

**2.**
**Definitions.**

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**3.**
**Administration.**

*Authority*

*Administrator*

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*Limitation      of Liability*

**4.**
**Shares      Available Under the Plan**

**5.**
**Eligibility.**

**6.**
**Grants      of Restricted Stock or RSUs.**

*One-Time      Grant Upon First Election as a Non-Employee Director. *

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|   | (i) | Award                Type and Amount.  Effective June 21, 2007, one-time grants                of Restricted Stock to each newly appointed or elected non-employee                director were discontinued. |
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|   | (ii) | Vesting                and Forfeiture Terms.   With respect to Restricted                Stock granted before June 21, 2007 under this Section 6(a), one-third                of                the number of Shares of Restricted Stock shall vest and become                non-forfeitable at the close of business on June 1 of each of the                three                calendar years following the date of grant of such award, rounded                to the                nearest number of whole Shares, subject to the                following: |
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|   | (A) | In                the event of a Change in Control or termination of the Participant's                service as a director due to death or Disability, the award, if not                previously vested or forfeited, shall immediately vest and become                non-forfeitable in full. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | In                the event of termination of the Participant's service as a director                due to                Mandatory Retirement by the Participant, the award, if not previously                vested or forfeited, shall immediately vest and become non-forfeitable                as                to that number of Shares of Restricted Stock as would have vested                and                become non-forfeitable if the Participant had continued to serve                as a                director through the anticipated date of the next annual meeting                of                shareholders. |
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|   | Unless                otherwise determined by the Board, an award of Restricted Stock that                has                not vested at or before the time of termination of the Participant's                service as a director  (this would include all unvested                Restricted Stock in the event of a director's removal from service)                will                cease to vest and will be forfeited upon such                termination. |
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*      Annual Grant to a Non-Employee Director.  *

|   | (i) | Award                Type and Amount.  At the date of the 2007 Annual Meeting of                Shareholders and each subsequent annual meeting of shareholders at                which a                director is elected or reelected as a member of the Board (or at                which                members of another class of directors are elected or reelected, if                the                Company then has a classified Board), RSUs shall be automatically                granted                to each non-employee director eligible to participate in the Plan                at the                close of business on that date.  The number of such RSUs to be                granted shall equal $135,000 divided by the Fair Market Value of                a Share                on the date of grant.  If a non-employee director is initially                elected or appointed at a date that does not coincide with the date                of an                annual meeting and does not fall on or between June 1 and the date                of that                year's annual meeting, if he or she is eligible to participate in                the Plan                at that date, he or she will be automatically granted the number                of RSUs                equal to (A) $135,000 multiplied by a fraction the numerator of which                is                the number of days from the date of grant to the anniversary of the                most                recent annual meeting and the denominator of which is 365, divided                by (B)                the Fair Market Value of a Share on the date of grant, with the resulting                number of RSUs rounded to the nearest whole                RSU. |
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|   | (ii) | Vesting                and Forfeiture Terms.   Such award shall become vested                and non-forfeitable as to all RSUs at the close of business on the                June 1                following the date of grant, subject to the                following: |
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|   | (A) | In                the event of a Change in Control or termination of the Participant's                service as a director due to death or Disability, the award, if not                previously vested or forfeited, shall immediately vest and become                non-forfeitable in full. |
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|   | (B) | In                the event of termination of the Participant's service as a director                due to                a voluntary termination of service or  Mandatory Retirement by                the Participant, the award, if ­­not previously vested or                forfeited, shall immediately vest and become non-forfeitable as to                that                number of RSUs equal to the total number of RSUs multiplied by a                fraction                the numerator of which is the number of days from the date of grant                to the                date of termination of service and the denominator of which is the                number                of days from the date of grant until the June 1 following the date                of                grant of such award (such fraction in no event will exceed                one). |
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*Dividends      and Dividend Equivalents*

*Other      Restricted Stock Terms*

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*Settlement      of RSUs.*

|   | (i) | General                Rule. Except as provided in (ii) – (v) below, RSUs shall be settled                promptly at the time the RSUs become vested (and in any case within                90                days thereafter); provided, however, that settlement of RSUs shall                be                subject to delayed settlement if and to the extent specified in Section                10(d), (e) or (f) below. |
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|   | (ii) | Deferral                Election.  A director may elect to defer settlement of RSUs                by timely filing an election with the Company as provided                below: |
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| A.   | Timing                of Elections. A deferral election must generally be made by the end of                the calendar year prior to the Plan Year in which the RSU is                granted.  However, a newly eligible Participant (within the                meaning of Treas. Reg. § 1.409A-2(a)(7)) may make a deferral election with                respect to an initial grant of RSUs under Section 6(b) within 30                days of                election or appointment to the Board (which will apply only to the                portion                of the RSUs attributable to service by the director after the election                has                been filed), or at such other time as is permitted under Section                409A of                the Code. |
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| B.   | Effect                and Irrevocability of Elections.  Elections relating to RSUs                filed before the calendar year in which the Plan Year to which they                relate                begins, other than those subject to Section 9(c), shall become irrevocable                immediately before the beginning of such calendar year unless the                Administrator specifies an earlier time.  Elections subject to                Section 9(c) shall become irrevocable in accordance with Section                9(c).  Other elections shall become irrevocable upon filing or                at such other time as may be specified by the                Administrator.  The latest election filed with the Administrator                shall be deemed to supersede all prior inconsistent elections that                remain                revocable at the time of filing of the latest                election. |
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|   | (iii) | Matters                To Be Elected.  The Administrator will provide a form or                forms of election which will permit a director to make appropriate                elections with respect to all relevant matters under this Section                6.  This election form may be included in the document                evidencing the grant of RSUs. |
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|   | (iv) | Permitted                Elections as to Settlement.  Elections as to the time of                settlement of deferred RSUs shall conform to the terms of Section                9(c). |
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|   | (v) | Forfeiture                Risk.  A validly deferred RSU will remain forfeitable as                provided herein until the RSU has become vested.  Thereafter,                although it will still be referred to as an RSU for purposes of the                Plan,                it will be non-forfeitable. |
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**7.**
**Grants      of Options and SARs. **

*Annual      Grant of Option to a Non-Employee Director. *

|   | (i) | Award                Type and Amount.  Effective June 21, 2007, annual grants of                Options to non-employee directors were                discontinued. |
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|   | (ii) | Vesting                and Forfeiture Terms.  With respect to each Option granted                before June 21, 2007 under this Section 7(a), the Option shall vest                and                become exercisable in full at the close of business on the June 1                following the date of grant of such award, subject to the                following: |
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|   | (A) | If                such Option has not previously vested or been forfeited, it shall                vest and                become exercisable in full upon a Change in Control, upon the                Participant's death, or upon the termination of the Participant's                service                as a director due to Disability. |
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|   | (B) | If                such Option has not previously vested or been forfeited, it shall                vest and                become exercisable as to the "Pro Rata Shares" upon a termination                of the                Participant's service as a director due to a voluntary termination                of                service (i.e., excluding termination due to Disability or Mandatory                Retirement).  For purposes of this Section 7(a)(ii), the "Pro                Rata Shares" shall be the number of Shares determined by multiplying                (1)                the number of Shares as to which the Option would have vested and                become                exercisable if the Participant had continued to serve as a director                through the anticipated date of the next annual meeting of shareholders                by                (2) a fraction the numerator of which is the number of days from                the date                of the latest annual meeting of shareholders through the date of                the                Participant's termination and the denominator of which is 365 (rounded                up                to the next whole share). |
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|   | (C) | Any                portion of an Option that has not vested and become exercisable at                the                date of a director's Mandatory Retirement shall remain outstanding                and                become exercisable in accordance with the first sentence of this                Section                7(a)(ii), provided that such Option shall become exercisable in full                upon                a Change in Control or the death of the director, and each such portion                of                the Option that becomes exercisable after such Mandatory Retirement                shall                expire at the end of the one-year period following the date it becomes                exercisable as provided in Section                7(a)(iii). |
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|   | (iii) | Option                Term.  With respect to each Option granted before June 21,                2007 under this Section 7(a), the Option, to the extent not previously                forfeited, shall expire at the earlier of (i) ten years after the                date of                grant (or such earlier date as may be specified by the Board prior                to                grant), or (ii) one year after the Participant ceases to serve as                a                director of the Company for any reason except that, in the case of                a                termination due to Mandatory Retirement, any portion of the Option                that                becomes exercisable at a date following the Mandatory Retirement,                as                provided in Section 7(a)(ii)(C), shall expire one year after the                date such                portion vests and becomes exercisable.  (Note: Portions of any                Option that were vested and exercisable at the date of Mandatory                Retirement will expire one year after such Mandatory Retirement,                but in no                event later than ten years after the date of                grant). |
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*Exercise      Price and Grant Price*

*Option      and SAR Maximum Term*
* *

*Payment      of Exercise Price*

**8.**
**Deferral      of Fees In Deferred Shares and Deferred Cash**

*Elections*

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|   | (i) | Timing                of Elections. A deferral election must generally be made by the end of                the calendar year prior to the Plan Year in which the Director                Compensation will be earned.  However, a newly eligible                Participant (within the meaning of Treas. Reg. § 1.409A-2(a)(7)) may make                a deferral election with respect to Director's initial Director                Compensation (earned after the date of such election) within 30 days                of                election or appointment to the Board, or at such other time as is                permitted under Section 409A of the                Code. |
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|   | (ii) | Effect                and Irrevocability of Elections.  Elections shall be deemed                continuing and therefore applicable to Plan Years after the initial                Plan                Year covered by the election, until the election is modified or superseded                by the Participant.  Elections other than those subject to                Section 9(c) shall become irrevocable at the commencement of the                calendar                year which includes the first day of the Plan Year to which an election                relates.  Elections relating to the time and manner of                settlement of an Account shall become irrevocable at the specified                deadline for the filing of such elections under Section 9(c) unless                the                Administrator specifies a different time.  The latest election                filed with the Administrator shall be deemed to supersede all prior                inconsistent elections that remain revocable at the time of filing                of the                latest election prior to the beginning of a Plan Year or at such                other                date as may be specified by the Administrator, provided that any                date so                specified shall ensure effective deferral of taxation and otherwise                comply                with applicable laws. |
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|   | (iii) | Matters                To Be Elected.  The Administrator will provide a form or                forms of election which will permit a director to make appropriate                elections with respect to all relevant matters under this Section                8 and                Section 9. |
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|   | (iv) | Time                of Filing Elections.  An election must be received by the                Administrator prior to the deadline specified by the                Administrator.  Under no circumstances may a Participant defer                compensation to which the Participant has attained, at the time of                deferral, a legally enforceable right to current receipt of such                compensation. |
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*Deferral      of Director Compensation in the Form of Deferred Shares*

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*Deferral      of Director Compensation in the Form of Deferred Cash*

*Cessation      of Service as a Director*

**9.**
**Other      Terms of Accounts**

*Dividend      Equivalents on Share Units*

|   | (i) | Cash                and Non-Share Dividends.  If the Company declares and pays a                dividend on Shares in the form of cash or property other than Shares,                then                a number of additional Share Units shall be credited to a Participant's                Account as of the designated crediting date for such dividend equal                to (i)                the number of Share Units credited to the Account as of the record                date                for such dividend, multiplied by (ii) the amount of cash plus the                Fair                Market Value of any property other than Shares actually paid as a                dividend                on each Share at such payment date, divided by (iii) the Fair Market                Value                of a Share at such designated crediting                date. |
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|   | (ii) | Share                Dividends and Splits.  If the Company declares and pays a                dividend on Shares in the form of additional Shares, or there occurs                a                forward split of Shares, then a number of additional Share Units                shall be                credited to the Participant's Account as of the payment date for                such                dividend or forward Share split equal to (i) the number of Share                Units                credited to the Account as of the record date for such dividend or                split                multiplied by (ii) the number of additional Shares actually paid                as a                dividend or issued in such split in respect of each                Share. |
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|   | (iii) | Designated                Crediting Date.  The Administrator may designate the                crediting date for dividend equivalents under Section 9(a)(i), which                may                be not earlier than the dividend payment date and not later than                six                months after the dividend payment date.  No interest will be                credited on cash amounts between the dividend payment date and the                designated crediting date. |
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*Reallocation      of Accounts*

*Elections      as to Settlement*

|   | (i) | Matters                Covered by Election.  Subject to the terms of the Plan, the                Administrator shall determine whether all deferrals under the Plan                must be                subject to a single election as to the time or times of settlement,                or                whether settlement elections may relate to deferrals relating to                a                specified Plan Year.  If the Administrator permits elections to                relate to a specified Plan Year, such election shall apply to the                amounts                originally credited in respect of such Plan Year and to any additional                amounts credited as dividend equivalents or interest in respect of                such                originally credited amounts and previously credited additional                amounts. |
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|   | (ii) | Modifying                Elections.  A Participant may modify a prior election as to                the time at which a Participant's Account (or portion thereof) will                be                settled and/or the form of settlement (i.e., lump sum or installments,                or                the number of installments) at any time by filing a new election                with the                Administrator, subject to, and in accordance with paragraphs (A)                and (B),                below.  The foregoing notwithstanding, elections under this                Section 9(c) shall not be permitted, if permitting such an election                would                result in constructive receipt by the Participant of compensation                in                respect of the Participant's Account prior to the actual settlement                of                such Account or would violate Section 409A of the                Code. |
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|   | (A) | Second                Elections.  To the extent permitted under Section 409A of                the Code and the regulations issued thereunder, a Participant may                change                the form of settlement (i.e*.,*lump sum or installments, or the                number of installments) and/or the settlement date selected under                a                deferral election, provided (a) the new election must be must be                filed                with the Administrator at least 12 full months before settlement                would                occur under the election in place prior to the change, (b) the new                election is not effective for a period of 12 months from the date                made,                and (c) the settlement date under the modified election defers settlement                for at least 5 years from the date settlement would otherwise have                occur. |
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|   | (B) | Special                2006 and 2007 Elections.  Notwithstanding anything in                Section 6, Section 8 or this Section 9 to the contrary, to the extent                permitted under Section 409A of the Code and the regulations issued                thereunder, a Participant may make a new election on or before December                31, 2007 as to the settlement date and/or form (i.e., lump sum or                installments, or the number of installments) of deferred RSUs, deferred                cash and/or Deferred Shares credited to the Participant's                Account.  However a Participant shall not be permitted in 2006                to change an election in a manner that will defer settlement of amounts                that the Participant otherwise would have received in 2006 or cause                payments to be made in 2006 pursuant to the 2006 election; and a                Participant shall not be permitted in 2007 to change an election                in a                manner that will defer settlement of amounts that the Participant                otherwise would have received in 2007 or cause payments to be made                in 2007                pursuant to the 2007 election. |
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*Statements*

*Fractional      Shares*

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**10.**
**Settlement      of Accounts**

*Form      of Distribution*

*Death      or Disability*

*Financial      Emergency and Other Payments*

*Distribution      Upon a Change in Control*

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*Distributions      in Certain Cases if Director Has Become an Employee*

*Separation      from Service. *

**11.**
**Limitations      on Deferrals and Related Participant Rights**

**12.**
**Definitions      Relating to Change in Control**

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|   | (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 |
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|   | (ii) | those                individuals who as of the Effective Date 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                Effective Date 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 |
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|   | (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 |
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|   | (iv) | there                is implemented or consummated a plan of complete liquidation of the                Company or a 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. |
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**13.         General      Provisions.**

*Limits      on Transferability*

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*Adjustments*

*Receipt      and Release*

*Compliance*

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*Changes      to the Plan and Awards*

*Unfunded      Status of Plan; Creation of Trusts*

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*Other      Participant Rights*

*Continued      Service as an Employee*

*Governing      Law*

*Limitation*

*Severability*

*Nonexclusivity      of the Plan*

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*Effective      Date and Plan Termination*

*Approved      by the Board of Directors June 21, 2007*

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