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|   | (1) | Except      as provided in subsection (2), below, “Competitor” shall mean at any time      only a chain of retail stores with fifty (50) or more store locations;      provided, however, that the average square footage of the chain’s stores      is less than fifteen thousand (15,000) square  feet. |
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|   | (2) | During      any period in which Executive is receiving Separation Payments under      Paragraph 2 hereof, the term “Competitor” shall mean, in addition to a      Competitor as described in subsection (1), above, a chain of retail stores      with one hundred (100) or more store locations (without regard      to |
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|   |   | square footage) whose gross revenues in plus size women’s apparel      (sizes 14-34) exceeds five percent (5%) of its total gross      revenues.  If Executive waives her right to receive Separation      Payments hereunder, or otherwise does not receive such Separation      Payments, the term “Competitor” shall have the meaning given that term in      subsection (1), above.  |
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|   | (i) | The      Executive agrees that she will not file (or ask or let anyone file for      her) any charge, complaint, claim or lawsuit of any kind in connection      with any claim released by this Agreement against any Released      Person.  However, the preceding sentence does not apply to any      claim the Executive might file alleging that her waiver of claims under      the Age Discrimination in Employment Act of 1967 (“ADEA”) was not knowing      and voluntary.  The Executive agrees that she has not already      filed a charge, complaint, claim or lawsuit arising out of any claim      released by this Agreement against any Released Person.  The      Executive acknowledges full and complete satisfaction of, and releases and      discharges all Released Persons from, any Claims.  The Executive      is giving this release for herself, as well as for her executors,      administrators, heirs and assigns. |
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|   | (ii) | “Released      Persons” are the Company, its predecessors, successors, parents,      subsidiaries and affiliates, successors, and assigns and each of their      past, present and future managers, members, members, directors, officers,      partners, agents, employees, attorneys, representatives, and      fiduciaries. |
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|   | (iii) | “Claims”      are any and all claims, demands and causes of action of whatever kind,      including any claims for attorney’s fees, that the Executive now has, or      at any time had, against any Released Persons, including, without      limitation, those that arise out of or relate in any way to her      employment, termination of employment with the Company or the Employment      Agreement.  “Claims” includes, without limitation, except as      provided in Paragraph 6(b)(4), claims that may arise under the ADEA,      Americans with Disabilities Act, Title VII of the Civil Rights Act, the      Civil Rights Act of 1991, the Fair Labor Standards Act, the Pennsylvania      Human Relations Act, and/or any other statute, regulation or principle or      theory of law which the Executive may have now or in the future, except      those that arise after the execution of this      Agreement.  “Claims” includes claims the Executive may not even      know about or suspect, as well as any claims she may have under the      ADEA. |
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|   | (iv) | “Claims”      does not include (and Executive is not releasing): (1) Any claims against      the Company for promises it is making to the Executive in this Agreement;      (2) Any claims for benefits under any retirement, savings, or other      employee benefit programs (but this Release does cover any claims she may      make for benefits or compensation beyond those described or referred to in      this Agreement); (3) Any claims covered by workers compensation      and |
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|   |   | unemployment      compensation laws; (4) Any claims that she did not knowingly and      voluntarily waive her Claims under the ADEA, or any claims arising under      the ADEA after the execution of this Agreement; or (5) Any claims arising      under or in connection with any indemnification agreement, indemnification      obligations under the Company’s bylaws or claims covered by any insurance      policy obtained by the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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|   | (v)    | The      Executive retains the right to file a claim or a charge of employment      discrimination with the Equal Employment Opportunity Commission (“EEOC”)      because of race, color, sex, religion, national origin, age, disability      and/or equal pay under the statutes enforced by the EEOC with respect to      matters preceding the date of this Agreement and to assist or cooperate      with such agency in its investigation or prosecution of a claim or      charge.  The Executive understands and agrees, however, that as      part of this Agreement and Release, she is waiving any and all right to      recover damages and other relief in any lawsuit, regardless of whether it      is initiated by the Executive or on her behalf by a government      agency.  This waiver specifically covers all forms of relief      including, without limitation, reinstatement, front pay, back pay,      compensatory damages, mental and emotional distress damages, punitive      damages and attorneys’ fees. |

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if to the Executive, to:

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|                               | Executive:                     |
|------------------------------------|--------------------------------|
|                               |                           |
|                               | ______________________________ |
|                               | DORRIT      J. BERN            |
|                               |                           |
|                               |                           |
| ATTEST:                            | CHARMING      SHOPPES, INC.    |
|                               |                           |
|                               |                           |
| By:_______________________________ | By:___________________________ |
| Corporate      Secretary           | Name:                          |
|                               | Title:                         |

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