**EXHIBIT      10.2.36**

**CHARMING      SHOPPES, INC.**

**Annual      Incentive**
**Program**

**As      Amended and Restated January 24, 2007**

**General**

**Definitions**

**Eligibility**

**Designation      and Earning of Annual Incentive Award Opportunities**

*Designation      of Award Opportunities and Performance Goals*

*Determination      of Annual Incentive Award*

**Settlement      of Awards**

*Elective      Deferral*

*Settlement      of Award*

*Tax      Withholding*

*Non-Transferability*

**Effect      of      Termination of Employment;      Retirement**

**General      Provisions**

*Changes      to this Program*

*Unfunded      Status of Participant Rights*

*Nonexclusivity      of the Program*

*No      Right to Continued Employment.*

*Severablity.*

*Approved        by the Compensation and Stock Option Committee on January 19, 2005;*

*Approved        by the Independent members of the Board of Directors on January 20,        2005*

*Approved        by the Compensation and Stock Option Committee on February 2,        2006*

*Approved        by the Independent members of the Board of Directors on February 2,        2006*

*Approved        by the Compensation Committee on January 24, 2007*

*Approved        b y the Independent members of the Board of Directors on January 25,        2007*

*Approved        by the Compensation Committee on March 23, 2007*

*Approved        b y the Independent members of the Board of Directors on March 29,        2007*

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**Annual      Incentive Program**
**Designation      of Fiscal 2008 Performance Period, Performance Goal, and Annual Incentive Award      Opportunities**

**Part      I. **
**Performance      Goals and Award Opportunities for the Fiscal 2008 Performance      Period**

|   | (a) | Nature                of Performance Goals.                For the Fiscal 2007 Performance Period, the Performance Goal shall                be                based on corporate consolidated results (specifically, operating                earnings                before income taxes and net interest (i.e. excluding interest income                and                interest expenses) and excluding extraordinary and non-recurring                items                (“Operating Earnings”), as defined in the “Charming Shoppes, Inc. 2007                Budget Presentation”), division performance goals and individual                performance goals. The specific Performance Goals and the Participants                including all Executive Officers and other senior officers to whom                they                apply are set forth below and in Schedules I and II hereto. The                Performance Goals of other Participants shall be determined by the                Chief                Executive Officer and the Divisional President (to the extent applicable)                in consultation with the Chief Financial Officer and the Executive                Vice                President - Human Resources of the Company (the "Authorized Officers").                In                furtherance of the foregoing: |
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|   | -- |   | The                Corporate Operating Earnings Performance Goal for fiscal 2007 shall                be a                Minimum of $_______________ (the "Minimum Goal"), a Target of                $___________________, and a Maximum of $________________. |
|--------|----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -- |   | The                minimum, target and maximum levels of operating earnings for Lane                Bryant,                Fashion Bug, Catherines and Crosstown are set forth in Schedule I                hereto. |
|--------|----|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -- |   | An                Annual Incentive Award Opportunity based on the consolidated corporate                goal and the individual performance goal will be earned only if Operating                Earnings equal or exceed the specified Minimum Goal; and |
|--------|----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -- |   | With                respect to the divisional                Presidents: |
|--------|----|--------|--------------------------------------------------------------------------|

|   |   |   |   |
|--------|--------|--------|--------|
|   |   | (i) | An                Annual Incentive Award Opportunity based on the consolidated corporate                goal will be earned only if Operating Earnings equal or exceed the                specified Minimum Goal and only if the divisional operating income                equals                or exceeds the specified Minimum Goal for the Performance Period                for that                President’s division as specified above; and |
|--------|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | (ii) | An                Annual Incentive Award Opportunity based on divisional operating                income                and individual performance goals will be earned only if the divisional                operating income equals or exceeds the specified minimum level for                the                Performance Period for that division as specified above. |
|--------|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Designation                of Participants and Award Opportunity Terms.                Participants in the Program for the Fiscal 2008 Performance Period                shall                be executive officers, senior officers and other employees designated                in                Impact Levels 1 through 10 at the date hereof as more fully set forth                in                Schedule I hereto. For each Participant in Impact Levels 1 through                10, the                Fiscal 2008 Performance Period, the Participant's target Annual Incentive                Award Opportunity, designated levels of achievement of the Company                Performance Goals, range of potential Annual Incentive Awards relating                to                the level of achievement of the Performance Goal, and other Award                Opportunity terms are set forth on Schedule I and Schedule II hereto.                Division Performance Goals and related terms shall be determined                by the                Authorized Officers, subject to the                following: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | The                divisional performance weights shall be allocated in accordance with                Schedule I and II. |
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|   | (ii) | The                portion of the awards attributable to achievement of the corporate                goal                (consolidated) shall be determined in accordance with this Designation                and                any attachment. |
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|   |   | For                all Participants (corporate and divisional), if the Minimum Goal                is                achieved (as required above), then awards based on the performance                between                the applicable minimum and target level or between the applicable                target                and maximum level will be determined on a pro-rata basis (i.e.,                interpolated); |
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|   | (c) | Adjustments                to Performance Goals.                The Committee may determine in its discretion to adjust the Performance                Goals specified in (a) above (except as limited by the 2003 Plan                and the                Program). |
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**Part      II.**
**Foreign      Participants **