Document:

exhibit102feb12008.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      10.2

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      	
              Severance
                Agreement for

            
	 
	
              ____________________________

            
	
              Charming
                Shoppes, Inc.

            
	 
	
              _______________________,
                2008

            

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

              

      

    

    Contents

     

    
      

       

      

    

    
      	
              Article
                1. Establishment, Term, and Purpose

            	
              1

            
	 	 
	
              Article
                2. Definitions

            	
              1

            
	 	 
	
              Article
                3. Severance Benefits

            	
              5

            
	 	 
	
              Article
                4. Tax Compliance

            	
              9

            
	 	 
	
              Article
                5. Excise Tax Treatment

            	
              10

            
	 	 
	
              Article
                6. The Company’s Payment Obligation

            	
              10

            
	 	 
	
              Article
                7. Legal Remedies

            	
              11

            
	 	 
	
              Article
                8. Outplacement Assistance

            	
              11

            
	 	 
	
              Article
                9. Successors and Assignment

            	
              11

            
	 	 
	
              Article
                10. Covenants

            	
              12

            
	 	 
	
              Article
                11. Miscellaneous

            	
              14

            

    

    

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    
      
                      

         

      

      
         

        
          

        

      

      
         

      

    

    Charming
      Shoppes, Inc.

     

    Severance
      Agreement

     

    THIS
      AGREEMENT is made and entered into as of _____ __, 2008 (the “Effective Date”),
      by and between Charming Shoppes, Inc. (hereinafter referred to as the
“Company”) and «NAME» (hereinafter referred to as the “Executive”).

     

    WHEREAS,
      the Executive and the Company are currently parties to a change in control
      agreement, dated ______ __, ____, as amended (the “CIC Agreement’); this
      Agreement replaces the CIC Agreement and, except as otherwise provided herein,
      this Agreement replaces any other severance agreements in effect between the
      Executive and the Company or a subsidiary and any other non-competition or
      non-solicitation agreements between the Executive and the Company or a
      subsidiary;

     

    WHEREAS,
      the Board of Directors of the Company (the “Board”) has determined that it is
      appropriate to provide severance compensation to retain key executives and
      to
      provide incentives to key executives to promote the interests of the
      Company;

     

    WHEREAS,
      the Board has approved the Company entering into severance agreements with
      certain key executives of the Company; and

     

    WHEREAS,
      the Executive is a key executive of the Company.

     

    NOW
      THEREFORE, to assure the Company that it will have the continued dedication
      of
      the Executive, and to induce the Executive to remain in the employ of the
      Company, and for other good and valuable consideration, the Company and the
      Executive agree as follows:

     

    Article
      1. Establishment, Term, and Purpose

    This
      Agreement shall commence on the Effective Date and shall continue in effect
      for
      three (3) full years (i.e., until the day before the third anniversary of the
      Effective Date).  However, at the end of the first year of such three
      (3) year period and at the end of each additional year thereafter, the term
      of
      this Agreement shall be extended automatically for one (1) additional year,
      unless the Committee delivers written notice six (6) months prior to the end
      of
      the first year of such term, or extended term, to the Executive, that the
      Agreement will not be extended.  In such case, the Agreement will
      terminate at the end of the term, or extended term, then in
      progress.  However, in the event a Change in Control occurs during the
      original or any extended term, this Agreement will remain in effect for not
      less
      than the longer of: (i) twenty-four (24) months beyond the month in which
      such Change in Control occurs; or (ii) until all obligations of the Company
      hereunder have been fulfilled, and until all benefits required hereunder have
      been paid to the Executive.

     

    Article
      2. Definitions

    Whenever
      used in this Agreement, the following terms shall have the meanings set forth
      below and, when the meaning is intended, the initial letter of the word is
      capitalized.

     

    
      
              

                       

        

         

      

      
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    2.1    “Base
      Salary” means the salary of record paid to the Executive as annual
      salary, excluding amounts received under incentive or other bonus plans, whether
      or not any such salary or other amounts are deferred.

     

    2.2    “Beneficial
      Owner” shall have the meaning ascribed to such term in Rule 13d-3
      of the General Rules and Regulations under the Exchange Act and shall include
      related terms such as “Beneficial Ownership.”

     

    2.3    “Benefit
      Period” means the period as provided in Section 3.3 herein with respect
      to which the Executive receives severance compensation.

     

    2.4    “Beneficiary”
      means the persons or entities designated or deemed designated by the Executive
      pursuant to Section 9.2 herein.

     

    2.5    “Board”
      means the Board of Directors of the Company.

     

    2.6    “Cause”
      means: (a) the Executive’s willful and continued failure to substantially
      perform his or her duties with the Company (other than any such failure
      resulting from Disability or occurring after issuance by the Executive of a
      Notice of Termination for Good Reason), after a written demand for substantial
      performance is delivered to the Executive that specifically identifies the
      manner in which the Company believes that the Executive has willfully failed
      to
      substantially perform his or her duties, and after the Executive has failed
      to
      resume substantial performance of his or her duties on a continuous basis within
      thirty (30) calendar days of receiving such demand; (b) the Executive’s
      willfully engaging in conduct (other than conduct covered under (a) above)
      which
      is demonstrably and materially injurious to the Company, monetarily or
      otherwise; or (c) the Executive’s having been convicted of a
      felony.  For purposes of this subparagraph, no act, or failure to act,
      on the Executive’s part shall be deemed “willful” unless done, or omitted to be
      done, by the Executive not in good faith and without reasonable belief that
      the
      action or omission was in the best interests of the Company. 

     

    2.7    “Change
      in Control” of the Company shall be deemed to have occurred as of the
      first day after the Effective Date that any one or more of the following
      conditions is satisfied:

     

    
      	
               

            	
              (a)    Any
                Person, other than the Company or a Related Party, acquires directly
                or
                indirectly the Beneficial Ownership of any Voting Security and immediately
                after such acquisition such Person has directly or indirectly, the
                Beneficial Ownership of Voting Securities representing twenty percent
                (20%) or more of the total voting power of all the then-outstanding
                Voting
                Securities; or

            

    

     

    
      	
               

            	
              (b)    Those
                individuals who as of the date of this Agreement 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 this Agreement 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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              (c)    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 eighty percent (80%) 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 sixty (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

            

    

     

    
      	
               

            	
              (d)    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 fifty percent (50%)
                of
                the assets owned by the Company immediately prior to the
                transaction.

            

    

     

    However,
      in no event shall a Change in Control be deemed to have occurred, with respect
      to the Executive, if the Executive is part of a purchasing group which
      consummates the Change in Control transaction. The Executive shall be deemed
      “part of a purchasing group” for purposes of the preceding sentence if the
      Executive is an equity participant in the purchasing company or group (except
      for: (i) passive ownership of less than three percent (3%) of the stock of
      the purchasing company; or (ii) ownership of equity participation in the
      purchasing company or group which is otherwise not significant, as determined
      prior to the Change in Control by a majority of the nonemployee continuing
      Directors).

     

    2.8    “COBRA
      Benefits” shall refer to continued group health insurance benefits
      under Sections 601-607 of the federal Employee Retirement Income Security Act
      of
      1974, as amended.

     

    2.9    “Code”
      means the United States Internal Revenue Code of 1986,
      as amended.

     

    2.10    “Committee”
      means the Compensation Committee of the Board or any other committee appointed
      by the Board to perform the functions of the Compensation
      Committee.

     

    2.11    “Company”
      means Charming Shoppes, Inc., a Pennsylvania corporation, or any successor
      thereto as provided in Article 9 herein.  If the Executive is an
      officer of Charming Shoppes of Delaware, Inc. and/or any other subsidiary,
      direct or indirect, of Charming Shoppes, Inc. only, or an officer of any or
      all
      of  Charming Shoppes of Delaware, Inc., Charming Shoppes, Inc., and/or
      any other subsidiary, direct or indirect, of Charming Shoppes, Inc., the word
      "Company" shall be deemed to include not only Charming Shoppes, Inc. but also
      Charming Shoppes of Delaware, Inc., and/or such other subsidiary, direct or
      indirect, of Charming Shoppes, Inc., as applicable, with respect to employment
      matters, including termination of employment, where
      appropriate.  References to the "Company" with respect to a Change in
      Control and matters incidental to the determination of a Change in Control
      relate only to Charming Shoppes, Inc.

     

    
      
         

      

      
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    2.12    “Disability”
      means complete and permanent inability by reason of illness or accident to
      perform the duties of the occupation at which the Executive was employed when
      such disability commenced.

     

    2.13    “Effective
      Date” means the date of this Agreement set forth above.

     

    2.14    “Effective
      Date of Termination” means the date of termination of active employment
      with the Company.

     

    2.15    “Exchange
      Act” means the United States Securities Exchange Act of 1934, as
      amended.

     

    2.16    “Good
      Reason” shall mean, without the Executive’s express written consent,
      the occurrence of any one or more of the following:

     

    
      	
               

            	
              (a)    A
                material diminution of the Executive’s authorities, duties or
                responsibilities as an employee of the
                Company;

            

    

     

    
      	
               

            	
              (b)    A
                material change in the geographic location at which the Executive
                must
                perform services; for purposes of this Agreement, a material change
                means
                the Company requires the Executive to be based at a location which
                is at
                least fifty (50) miles farther from the Executive’s then current primary
                residence than is the Executive’s then current office
                location;

            

    

     

    
      	
               

            	
              (c)    A
                material diminution by the Company in the Executive’s Base Salary as in
                effect on the Effective Date or as the same shall be increased from
                time
                to time; or

            

    

     

    
      	
               

            	
              (d)    A
                material breach by the Company of this
                Agreement.

            

    

     

    Notwithstanding
      the foregoing, the Executive shall not have Good Reason for termination if,
      within sixty (60) days after the date on which the Executive gives a Notice
      of
      Termination, as provided in Section 3.8, the Company corrects the action or
      failure to act that constitutes the grounds for termination for Good Reason
      as
      set forth in the Executive’s Notice of Termination.  If the Company
      does not correct the action or failure to act, the Executive must terminate
      his
      or her employment within thirty (30) days after the end of the cure period,
      in
      order for the termination to be considered a Good Reason
      termination.  The existence of
      Good Reason
      shall not be affected by the Executive’s temporary incapacity due to physical or
      mental illness not constituting a Disability.

     

    2.17    “Notice
      of Termination” shall mean a written notice which shall indicate the
      specific termination provision in this Agreement relied upon, and shall set
      forth in reasonable detail the facts and circumstances claimed to provide a
      basis for termination of the Executive’s employment under the provision so
      indicated.

     

    2.18    “Qualifying
      Termination” means any of the events described in Section 3.2
      herein, the occurrence of which triggers the payment of Severance Benefits
      hereunder.

     

    
      
         

      

      
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    2.19    “Related
      Party” means (a) a majority-owned subsidiary of the Company; or (b) a
      trustee or other fiduciary holding securities under an employment plan of the
      Company or any majority-owned subsidiary; or (c) a corporation owned directly
      or
      indirectly by the shareholders of the Company in substantially the same
      proportion as their ownership of Voting Securities.

     

    2.20    “Retirement”
      means the Executive’s voluntary termination of employment in a manner which
      qualifies the Executive to receive immediately payable retirement benefits
      under
      the Company’s tax-qualified retirement plan or under the successor or
      replacement of such retirement plan if it is then no longer in
      effect.  The term “Retirement” shall not mean a termination of the
      Executive’s employment under circumstances that constitute Good Reason or that
      constitute an involuntary termination of the Executive’s employment by the
      Company.

     

    2.21    “Separation
      Pay
      Limitation”
      means the lesser of
      (i) two (2) times the Executive's then annual compensation or (ii) two (2)
      times
      the limit on compensation then set forth in Section 401(a)(17) of the Code,
      as
      determined for purposes of the “separation pay” exception under Section 409A of
      the Code.

     

    2.22    “Severance
      Benefits” means the payment of severance compensation as provided in
      Section 3.4 herein.

     

    2.23    “Three-Year
      Average Bonus” means the Bonus Percentage (defined below) multiplied by
      the Executive’s target annual cash bonus in effect for the fiscal year in which
      the Effective Date of Termination occurs.  The Bonus Percentage is
      calculated as the average of the following percentages for each of the three
      (3)
      fiscal years preceding the Effective Date of Termination:  (i) the
      annual cash bonus paid to the Executive for the year, divided by (ii) the
      Executive’s target annual cash bonus for the year.

     

    2.24    “Voting
      Securities” means any securities of the Company which carry the right
      to vote  generally in the election of directors.

     

    Article
      3. Severance Benefits

    3.1    Right
      to Severance Benefits.  The Executive shall be entitled to
      receive from the Company Severance Benefits, as described in Section 3.4
      herein, if there has been a Qualifying Termination and a Notice of Termination
      for a Qualifying Termination has been delivered, provided the Executive executes
      and does not revoke a written release and waiver of claims, in form and
      substance acceptable to the Company (the “Release”), of any and all claims
      against the Company and all related parties with respect to all matters arising
      out of the Executive’s employment by the Company, or the termination thereof
      (other than claims based upon any severance entitlements under the terms of
      this
      Agreement or entitlements under any plans or programs of the Company under
      which
      Executive has accrued a benefit).

     

    The
      Executive shall not be entitled to receive Severance Benefits if the Executive’s
      employment is terminated for Cause, or if his or her employment with the Company
      ends due to death, Disability, or Retirement or due to a voluntary termination
      of employment by the Executive without Good Reason.

     

    
      
         

      

      
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    3.2    Qualifying
      Termination.  The occurrence of any one or more of the
      following events (as evidenced by a Notice of Termination) shall be considered
      a
      Qualifying Termination under this Agreement:

     

    
      	
               

            	
              (a)    A
                termination of the Executive’s employment by the Company for reasons other
                than Cause, as evidenced by a Notice of Termination delivered by
                the
                Company to the Executive; or

            

    

     

    
      	
               

            	
              (b)    A
                termination by the Executive for Good Reason, as evidenced by a Notice
                of
                Termination delivered by the Executive to the
                Company.

            

    

     

    3.3    Benefit
      Period.  In the event of a Qualifying Termination, the
      Executive will receive Severance Benefits with respect to the following Benefit
      Period:

     

    
      	
               

            	
              (a)    If
                the
                Qualifying Termination occurs before a Change in Control, or if the
                Qualifying Termination occurs after twenty-four (24) months following
                a
                Change in Control, the Benefit Period is nine (9)
                months.

            

    

     

    
      	
               

            	
              (b)    If
                the
                Qualifying Termination occurs upon or within twenty-four (24) months
                following a Change in Control, the Benefit Period is twelve (12)
                months.

            

    

     

    3.4    Severance
      Benefits.  In the event the Executive becomes entitled to
      receive Severance Benefits as provided in Sections 3.1 and 3.2 herein,
      the Executive shall receive the following Severance Benefits:

     

    
      	
               

            	
              (a)    In
                the
                event of a Qualifying Termination before a Change in Control, or
                in the
                event of a Qualifying Termination after twenty-four (24) months following
                a Change in Control, the Company shall pay to the Executive the
                following:

            

    

     

    
      	
               

            	
              (i)    An
                amount equal to seventy-five one hundredths (.75) times the sum of
                (A) the
                Executive’s annual Base Salary, plus (B) the Executive’s Three-Year
                Average Bonus.  This severance amount shall be payable in
                regular payroll installments over the Benefit Period, beginning within
                thirty (30) days after the Effective Date of Termination, to the
                extent
                that the severance amount under this subsection (i) does not exceed
                the
                Severance Pay Limitation.  Any amount under this subsection (i)
                that exceeds the Severance Pay Limitation shall be paid as a separate
                lump
                sum payment within thirty (30) days following the Effective Date
                of
                Termination.

            

    

     

    
      	
               

            	
              (ii)    Reimbursement
                of the Executive’s monthly cost of COBRA Benefits under the Company’s
                health plan for the Benefit Period, provided, however, that payment
                of the
                COBRA Benefits shall be discontinued prior to the end of the Benefit
                Period if the Executive ceases to receive COBRA coverage under the
                Company’s health plan or if the Executive has available substantially
                similar benefits at a comparable cost to the Executive from a subsequent
                employer, as determined by the Committee.  The COBRA
                reimbursement payments shall be paid monthly on the first payroll
                date
                of

            

    

     

    

     

    
      
         

      

      
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    each
      month, beginning within thirty (30) days after the Effective Date of
      Termination.

     

    
      	
               

            	
              (iii)    A
                lump
                sum amount equal to the Executive’s unpaid annual cash bonus, calculated
                based on Company performance, for the year in which the Executive’s
                Effective Date of Termination occurs, multiplied by a fraction, the
                numerator of which is the number of completed days in the then existing
                fiscal year through the Effective Date of Termination, and the denominator
                of which is three hundred and sixty-five (365). This payment will
                be paid
                when the annual cash bonuses for the year are paid to other executives
                of
                the Company.

            

    

     

    
      	
               

            	
                (iv)    Outplacement
                services, as described in Article
                8.

            

    

     

    
      	
               

            	
              (v)    A
                lump
                sum amount equal to the Executive’s unpaid Base Salary, accrued vacation
                pay, and earned but not taken vacation pay through the Effective
                Date of
                Termination.  This payment shall be made within thirty (30) days
                after the Effective Date of
                Termination.

            

    

     

    
      	
               

            	
              (b)    In
                the
                event of a Qualifying Termination upon or within twenty-four (24)
                months
                after a Change in Control, the Company shall pay to the Executive
                the
                following amounts, all of which shall be paid within thirty (30)
                days
                after the Effective Date of Termination (except as provided in subsection
                (iv)):

            

    

     

    
      	
               

            	
              (i)    A
                lump
                sum amount equal to the sum of (A) the Executive’s annual Base Salary,
                plus (B) the Executive’s Three-Year Average
                Bonus.

            

    

     

    
      	
               

            	
              (ii)    A
                lump
                sum amount equal to the monthly cost of COBRA Benefits under the
                Company’s
                health plan and the Company’s monthly cost of life insurance and
                disability coverage in effect for the Executive at the Effective
                Date of
                Termination, multiplied by the number of full months in the Benefit
                Period.

            

    

     

    
      	
               

            	
              (iii)    A
                lump
                sum amount equal to the Executive’s unpaid target annual cash bonus
                established for the year in which the Executive’s Effective Date of
                Termination occurs, multiplied by a fraction, the numerator of which
                is
                the number of completed days in the then existing fiscal year through
                the
                Effective Date of Termination, and the denominator of which is three
                hundred and sixty-five (365).  This lump sum amount shall be
                payable regardless of whether the Company meets its performance objectives
                for the year in which the Executive’s Effective Date of Termination
                occurs.

            

    

     

    
      	
               

            	
              (iv)    Outplacement
                services, as described in Article
                8.

            

    

     

    
      	
               

            	
              (v)    A
                lump
                sum amount equal to the Executive’s unpaid Base Salary, accrued vacation
                pay, and earned but not taken vacation pay through the Effective
                Date of
                Termination.

            

    

     

    
      
         

      

      
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              (c)    Except
                as specifically provided above, incentive awards granted under the
                incentive arrangements adopted by the Company shall be paid pursuant
                to
                the terms of the applicable plan.  Equity awards shall be paid
                pursuant to the terms of the applicable
                plan.

            

    

     

    
      	
               

            	
              (d)    The
                aggregate benefits accrued by the Executive as of the Effective Date
                of
                Termination under the savings and retirement plans sponsored by the
                Company shall be distributed pursuant to the terms of the applicable
                plan.

            

    

     

    
      	
               

            	
              (e)    Compensation
                which has been deferred under the Charming Shoppes Variable Deferred
                Compensation Plan or other plans sponsored by the Company, as applicable,
                together with all interest or earnings credited with respect to any
                such
                deferred compensation balances, shall be distributed pursuant to
                the terms
                of the applicable plan.

            

    

     

    3.5    Termination
      for Disability.  If the Executive’s employment is terminated
      by reason of his or her Disability, the Executive shall receive his or her
      Base
      Salary and accrued vacation through the Effective Date of Termination, at which
      point in time the Executive’s benefits shall be determined in accordance with
      the Company’s disability, retirement, insurance, and other applicable plans and
      programs then in effect.  In the event the Executive’s employment is
      terminated due to Disability, the Executive shall not be entitled to the
      Severance Benefits described in Section 3.4.

     

    3.6    Termination
      for Retirement or Death.  If the Executive’s employment is
      terminated by reason of Retirement or death, the Executive’s benefits shall be
      determined in accordance with the Company’s retirement, survivor’s benefits,
      insurance, and other applicable programs of the Company then in
      effect.  In the event the Executive’s employment is terminated by
      reason of his or her Retirement or death, the Executive shall not be entitled
      to
      the Severance Benefits described in Section 3.4.

     

    3.7    Termination
      for Cause, or Other Than for Good Reason or Retirement. If the
      Executive’s employment is terminated either: (a) by the Company for Cause; or
      (b) by the  Executive (other than for Retirement or Good Reason), the
      Company shall pay the Executive his or her full Base Salary and accrued vacation
      through the Effective Date of Termination, at the rate then in effect, plus
      all
      other amounts to which the Executive is entitled under any compensation plans
      of
      the Company, at the time such payments are due, and the Company shall have
      no
      further obligations to the Executive under this Agreement.

     

    3.8    Notice
      of Termination.  The Company may terminate the Executive’s
      employment by providing not less than sixty (60) days prior written
      notice.  The Executive shall provide notice of a termination of
      employment by the Executive for Good Reason within thirty
      (30) days after the event giving rise to Good Reason occurs.  Any
      termination of employment by the Executive or by the Company for any reason
      shall be communicated by a Notice of Termination.

     

    Article
      4. Tax Compliance

    4.1    Section
      409A.

     

    
      	
               

            	
              (a)    Notwithstanding
                the foregoing, if required by Section 409A of the Code, if any amounts
                payable upon separation from service are considered “deferred
                compensation” under

            

    

     

    
      
         

      

      
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              Section
                409A, payment of such amounts will be postponed as required by Section
                409A, and the postponed amounts will be paid, with accrued interest
                as
                described below, on the first monthly payroll date occurring after
                six (6)
                months following the Effective Date of Termination.  If the
                Executive dies during the postponement period, any amounts postponed
                on
                account of Section 409A of the Code, with accrued interest as described
                below, shall be paid to the personal representative of the Executive's
                estate within sixty (60) days after the date of the Executive's
                death.  If payment of any amounts under this Agreement is
                required to be delayed pursuant to Section 409A, the Company shall
                pay
                interest on the postponed payments from the date on which the amounts
                otherwise would have been paid to the date on which such amounts
                are paid
                at a market rate of interest, as determined by the
                Committee.

            

    

     

    
      	
               

            	
              (b)    This
                Agreement is intended to comply with the requirements of Section
                409A of
                the Code, and, specifically, the separation pay exemption and short
                term
                deferral exemption of Section 409A, and shall in all respects be
                administered and interpreted in accordance with Section
                409A.  If any payment or benefit cannot be provided or made at
                the time specified herein without incurring sanctions on the Executive
                under Section 409A of the Code, then such benefit or payment shall
                be
                provided in full at the earliest time thereafter when such sanctions
                will
                not be imposed.  Notwithstanding anything in the Agreement to
                the contrary, distributions may only be made under the Agreement
                upon an
                event and in a manner permitted by Section 409A of the Code or an
                applicable exemption.  All payments to be made upon a
                termination of employment under this Agreement may only be made upon
                a
                “separation from service” under Section 409A.  For purposes of
                Section 409A of the Code, the right to a series of installment payments
                under this Agreement shall be treated as a right to a series of separate
                payments, and each payment under this Agreement shall be treated
                as a
                separate payment.  In no event may the Executive, directly or
                indirectly, designate the calendar year of any payment to be made
                under
                this Agreement.

            

    

     

    
      	
               

            	
              (c)    All
                reimbursements and in-kind benefits provided under this Agreement
                shall be
                made or provided in accordance with the requirements of Section 409A
                of
                the Code, including, where applicable, the requirement that (i) any
                reimbursement shall be for expenses incurred during the Executive’s
                lifetime (or during a shorter period of time specified in this Agreement),
                (ii) the amount of expenses eligible for reimbursement, or in-kind
                benefits provided, during a calendar year may not affect the expenses
                eligible for reimbursement, or in-kind benefits to be provided, in
                any
                other calendar year, (iii) the reimbursement of an eligible expense
                will
                be made on or before the last day of the calendar year following
                the year
                in which the expense is incurred, and (iv) the right to reimbursement
                or
                in-kind benefits is not subject to liquidation or exchange for another
                benefit.

            

    

     

    4.2    Withholding
      of Taxes.  The Company shall be entitled to withhold from any
      amounts payable under this Agreement all taxes as legally shall be required
      to
      be withheld (including, without limitation, any United States federal taxes
      and
      any other state, city, or local taxes).

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Article
      5. Application of 280G.

    5.1    Effect
      of Section 280G on Payments.  In the event a Change in
      Control occurs and the Executive becomes entitled to any benefits or payments
      in
      the nature of compensation (within the meaning of Section 280G(b)(2) of the
      Code) under this Agreement, or any other plan, arrangement, or agreement with
      the Company (the “Payments”), and such benefits or payments will be subject to
      the tax (the “Excise Tax”) imposed by Section 4999 of the Code (or any similar
      tax that may hereafter be imposed), the aggregate present value of the Payments
      under this Agreement shall be reduced (but not below zero) to the Reduced Amount
      (as defined below), if reducing the Payments under this Agreement will provide
      the Executive with a greater net after-tax amount than would be the case if
      no
      reduction was made.  The “Reduced Amount” shall be an amount expressed
      in present value which maximizes the aggregate present value of Payments without
      causing any Payment under this Agreement to be subject to the Excise Tax,
      determined in accordance with Section 280G(d)(4) of the Code.  The
      Company shall reduce the Payments under this Agreement by first reducing
      Payments that are not payable in cash and then by reducing cash
      Payments.  Only amounts payable under this Agreement shall be reduced
      pursuant to this Section 5.1.

     

    5.2    Computation.   In
      determining the potential impact of the Excise Tax, the Company may rely on
      any
      advice it deems appropriate, including, but not limited to, the counsel of
      its
      independent accounting firm.  For purposes of determining whether any
      of the Payments will be subject to the Excise Tax and the amount of such Excise
      Tax:

     

    
      	
               

            	
              (a)    The
                amount of the Payments which shall be treated as subject to the Excise
                Tax
                shall be equal to the amount of excess parachute payments within
                the
                meaning of Section 280G(b)(1) of the Code, as determined by the Company’s
                independent accounting firm; 

            

    

     

    
      	
               

            	
              (b)    The
                value of any non-cash benefits or any deferred or accumulated payment
                or
                benefit shall be determined by the Company's independent accounting
                firm
                in accordance with the principles of Sections 280G(d)(3) and (4)
                of the
                Code; and

            

    

     

    
      	
               

            	
              (c)    The
                value of the non-competition covenants contained in this Agreement
                shall
                be taken into account to reduce “parachute payments” to the maximum extent
                allowable under Section 280G of the
                Code.

            

    

     

    For
      purposes of the determinations under this Article 5, the Executive shall be
      deemed to pay federal income taxes at the highest marginal rate of federal
      income taxation in the calendar year in which the applicable payment is to
      be
      made, and state and local income taxes at the highest marginal rate of taxation
      in the state and locality of the Executive’s residence, net of the maximum
      reduction in federal income taxes which could be obtained from deduction of
      such
      state and local taxes.

     

    Article
      6. The Company’s Payment Obligation

    The
      Company’s obligation to make the payments and the arrangements provided for
      herein shall be absolute and unconditional, and shall not be affected by any
      circumstances, including, without limitation, any offset, counterclaim,
      recoupment, defense, or other right which the Company may have against the
      Executive or anyone else.  All amounts payable by the Company
      hereunder shall be paid without notice or demand.  Each and every
      payment made hereunder by the Company shall be

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    final,
      and the Company shall not seek to recover all or any part of such payment from
      the Executive or from whomsoever may be entitled thereto, for any reasons
      whatsoever.

     

    The
      Executive shall not be obligated to seek other employment in mitigation of
      the
      amounts payable or arrangements made under any provision of this Agreement,
      and
      the obtaining of any such other employment shall in no event effect any
      reduction of the Company’s obligations to make the payments and arrangements
      required to be made under this Agreement.

     

    Article
      7. Legal Remedies

    7.1    Payment
      of Legal Fees. To the extent permitted by law, the Company shall pay
      all legal fees, costs of litigation, prejudgment interest, and other expenses
      incurred in good faith by the Executive as a result of the Company’s refusal to
      provide the Severance Benefits to which the Executive becomes entitled under
      this Agreement, or as a result of the Company’s contesting the validity,
      enforceability, or interpretation of this Agreement, or as a result of any
      conflict (including conflicts related to the calculation of parachute payments)
      between the parties pertaining to this Agreement, subject to an overall limit
      on
      the payment of legal fees of thirty-five thousand dollars
      ($35,000).  The Company will provide such payment or reimbursement, as
      applicable, in accordance with Section 4.1(c) herein.

     

    7.2    Arbitration.  Any
      dispute or controversy arising under or in connection with this Agreement (other
      than as described in Section 10.4 below) shall be settled by arbitration,
      conducted before a panel of three (3) arbitrators sitting in a location selected
      by the Executive within fifty (50) miles from the location of his or her
      employment with the Company, in accordance with the rules of the American
      Arbitration Association then in effect.

     

    Judgment
      may be entered on the award of the arbitrator in any court having proper
      jurisdiction.  Subject to the limitations set forth in Section 7.1
      above relating to legal fees incurred by the Executive, all expenses of such
      arbitration, including the fees and expenses of the counsel for the Executive,
      shall be borne by the Company.

     

    Article
      8. Outplacement Assistance

    Following
      a Qualifying Termination (as described in Section 3.2 herein),
      the Executive shall be reimbursed by the Company for the costs of all
      outplacement services obtained by the Executive within the two (2) year period
      after the Effective Date of Termination, provided, however, that the total
      reimbursement shall be limited to an amount equal to thirty thousand dollars
      ($30,000).  The Company will provide reimbursement for the costs of
      outplacement services, provided that such reimbursements are available only
      for
      expenses incurred by the Executive, and the reimbursements shall be made by
      the
      end of the third taxable year following the Effective Date of Termination,
      in
      accordance with Section 409A of the Code.

     

    Article
      9. Successors and Assignment

    9.1    Successors
      to the Company.  The Company will require any successor
      (whether direct or indirect, by purchase, merger, consolidation, or otherwise)
      of all or substantially all of the business and/or assets of the Company or
      of
      any division or subsidiary thereof to expressly assume and agree to perform
      the
      Company’s obligations under this Agreement in the same manner and to the

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    same
      extent that the Company would be required to perform them if no such succession
      had taken place.

     

    9.2    Assignment
      by the Executive.  This Agreement shall inure to the benefit
      of and be enforceable by the Executive’s personal or legal representatives,
      executors, administrators, successors, heirs, distributees, devisees, and
      legatees.  If the Executive dies while any amount would still be
      payable to the Executive hereunder had he or she continued to live, all such
      amounts, unless otherwise provided herein, shall be paid in accordance with
      the terms of this Agreement to the Executive’s Beneficiary.  If the
      Executive has not named a Beneficiary, then such amounts shall be paid to the
      Executive’s devisee, legatee, or other designee, or if there is no such
      designee, to the Executive’s estate.

     

    Article
      10.   Covenants

    10.1    Disclosure
      of Information.  The Executive recognizes that he or she has
      access to and knowledge of certain confidential and proprietary information
      of
      the Company which is essential to the performance of his or her duties under
      this Agreement.  The Executive will not, during or after the term of
      his or her employment by the Company, in whole or in part, disclose such
      information to any person, firm, corporation, association, or other entity
      for
      any reason or purpose whatsoever, nor shall he or she make use of any such
      information for his or her own purposes, so long as such information has not
      otherwise been disclosed to the public or is not otherwise in the public domain
      except as required by law or pursuant to legal process. 

     

    10.2    Covenants
      Regarding Other Employees.   During the term of this
      Agreement and after the Executive’s termination of employment for any reason for
      the period of time equal to the Benefit Period that would be applicable if
      there
      was a Qualifying Termination (regardless of whether the Executive receives
      Severance Benefits), the Executive will not attempt to induce any employee
      of
      the Company to terminate his or her employment with the Company.

     

    10.3    Non-Competition
      Covenants.

     

    (a)    During
      the
      term of this Agreement and after the Executive’s termination of employment for
      any reason for the period of time equal to the Benefit Period that would be
      applicable if there was a Qualifying Termination (regardless of whether the
      Executive receives Severance Benefits), the Executive shall not, within the
      United States:  (1) directly or indirectly own any equity or
      proprietary interest (except for ownership of shares in a publicly traded
      company not exceeding three percent (3%) of any class of outstanding securities)
      in, or be an employee, agent, director, advisor, consultant, or independent
      contractor of, any Competitor of the Company, whether on the Executive’s own
      behalf or on behalf of any person, or (2) undertake any action to induce or
      cause any supplier or vendor to discontinue all or any part of its business
      with
      the Company.

     

    (b)    For
      purposes
      of this Agreement, “Competitor” shall mean any individual or organization that
      procures, sources, markets, promotes, sells or distributes any products or
      product lines that are, or are actually planned or under consideration to be,
      procured, sourced, marketed, promoted, sold or distributed by the Company during
      the Executive’s employment by the Company.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    10.4    Enforcement.  

     

    (a)    The
      Executive
      acknowledges and agrees that the restrictions contained in this Article 10
      are
      reasonable and necessary to protect and preserve the legitimate interests,
      properties, goodwill and business of the Company, that the Company would not
      have entered into this Agreement in the absence of such restrictions and that
      irreparable injury will be suffered by the Company should the Executive breach
      any of the provisions of those Sections.  The Executive represents and
      acknowledges that (i) the Executive has been advised by the Company to consult
      the Executive’s own legal counsel in respect of this Agreement, and (ii) the
      Executive has had full opportunity, prior to execution of this Agreement, to
      review thoroughly this Agreement with the Executive’s counsel.

     

    (b)    The
      Executive
      further acknowledges and agrees that a breach of any of the restrictions in
      this
      Article 10 cannot be adequately compensated by monetary damages.  The
      Executive agrees that the Company shall be entitled to preliminary and permanent
      injunctive relief, without the necessity of proving actual damages, as well
      as
      an equitable accounting of all earnings, profits and other benefits arising
      from
      any violation of Section 10.1, 10.2 or 10.3 hereof, which rights shall be
      cumulative and in addition to any other rights or remedies to which the Company
      may be entitled.  In the event that any of the provisions of Section
      10.1, 10.2 or 10.3 hereof should ever be adjudicated to exceed the time,
      geographic, service, or other limitations permitted by applicable law in any
      jurisdiction, it is the intention of the parties that the provision shall be
      amended to the extent of the maximum time, geographic, service, or other
      limitations permitted by applicable law, that such amendment shall apply only
      within the jurisdiction of the court that made such adjudication and that the
      provision otherwise be enforced to the maximum extent permitted by
      law.

     

    (c)    Notwithstanding
      anything in this Agreement to the contrary, if the Executive breaches any of
      the
      Executive’s obligations under Section 10.1, 10.2 or 10.3 hereof, the Company
      shall thereafter be obligated only for the compensation and other benefits
      provided in any Company benefit plans, policies or practices then applicable
      to
      the Executive in accordance with the terms thereof, and all payments under
      this
      Agreement shall cease.

     

    (d)    The
      covenants
      described in this Article shall continue to apply during the period specified
      herein after the Executive’s termination of employment for any reason, without
      regard to whether the Executive executes a Release or receives any Severance
      Benefits as a result of such termination.  If the Executive breaches
      any of the covenants described in Sections 10.1, 10.2 and 10.3, the applicable
      period during which the covenant applies shall be tolled during the period
      of
      the breach.  Without limiting the foregoing, the Severance Benefits
      provided under this Agreement are specifically designated as additional
      consideration for the covenants described in Sections 10.1, 10.2 and
      10.3.

     

    (e)    All
      references to the Company in this Article 10 shall include Charming Shoppes,
      Inc. and its subsidiaries, direct or indirect, and each of their
      successors.

     

    Article
      11.  Miscellaneous

    11.1        Notices.  All
      notices and other communications required or permitted under this Agreement
      or
      necessary or convenient in connection herewith shall be in writing and shall
      be

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    deemed
      to
      have been given when hand delivered or mailed by registered or certified mail,
      as follows (provided that notice of change of address shall be deemed given
      only
      when received):

     

    If
      to the Company, to:

     

    Charming
      Shoppes, Inc.

    450
      Winks Lane

    Bensalem,
      PA  19020

    Attention:  [General
      Counsel]

     

    If
      to the Executive, to:

     

    ___________________

    ___________________

    ___________________

     

    or
      to
      such other names or addresses as the Company or the Executive, as the case
      may
      be, shall designate by notice to each other person entitled to receive notices
      in the manner specified in this Section.

     

    11.2    Employment
      Status.  Except as may be provided under any other agreement
      between the Executive and the Company, the employment of the Executive by the
      Company is “at will,” and may be terminated by either the Executive or the
      Company at any time, subject to applicable law.

     

    11.3    Beneficiaries.  The
      Executive may designate one or more persons or entities as the primary and/or
      contingent Beneficiaries of any Severance Benefits owing to the Executive under
      this Agreement.  Such designation must be in the form of a signed
      writing acceptable to the Committee.  The Executive may make or change
      such designations at any time.

     

    11.4    Severability.  In
      the event any provision of this Agreement shall be held illegal or invalid
      for
      any reason, the illegality or invalidity shall not affect the remaining parts
      of
      the Agreement, and the Agreement shall be construed and enforced as if the
      illegal or invalid provision had not been included.  Further, the
      captions of this Agreement are not part of the provisions hereof and shall
      have
      no force and effect.

     

    11.5    Modification.  No
      provision of this Agreement may be modified, waived, or discharged unless such
      modification, waiver, or discharge is approved by the Committee and agreed
      to in
      writing and signed by the Executive and by an authorized officer of the Company,
      or by the respective parties’ legal representatives and successors.

     

    11.6    Other
      Severance Plans and Agreements.  The benefits under this
      Agreement will be provided in lieu of benefits under any other severance plan
      or
      agreement of the Company, except as otherwise provided herein.  This
      Agreement replaces the CIC Agreement, which shall terminate as of the Effective
      Date of this Agreement.  Except as otherwise provided herein, this
      Agreement replaces any other severance agreements between the Executive and
      the
      Company or a subsidiary and any non-competition or non-solicitation agreements
      between the Executive and the Company or a subsidiary.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    11.7    Counterparts.  This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be an original hereof, and it shall not be
      necessary in making proof of this Agreement to produce or account for more
      than
      one counterpart hereof.

     

    11.8    Applicable
      Law.  To the extent not preempted by the laws of the United
      States, the laws of the state of Pennsylvania shall be the controlling law
      in
      all matters relating to this Agreement.

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement on this ___ day of
      _____, 2008.

     

    
      	
              CHARMING
                SHOPPES, INC.

            	
              EXECUTIVE

            
	 	 
	 	 
	
              _______________________________

            	
              __________________________________

            
	
              Dorrit
                J. Bern

            	 
	
              Its:  President
                and Chief Executive Officer

            	 
	 	 
	 	 
	 	 
	
              ATTEST:________________________

            	 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
        15Exhibit 10.1

TOTAL SYSTEM SERVICES, INC.

REVISED STOCK OPTION AGREEMENT

 

	
             
 	
            [DATE]
 

 

THIS AGREEMENT ("Agreement"), dated as of the ___ day of _____________, 200__, by and between TOTAL SYSTEM SERVICES, INC. (the "Company"), a Georgia corporation having its principal office at 1600 First Avenue, Columbus, Georgia, and ___________________________ (the "Option Holder"), an employee of the Company or a Subsidiary of the Company.

 

W I T N E S S E T H:

 

WHEREAS, the Board of Directors of the Company has adopted the Total System Services, Inc. 2007 Omnibus Plan (the "Plan"); and

 

WHEREAS, the Company recognizes the value to it of the services of the Option Holder and intends to provide the Option Holder with added incentive and inducement to contribute to the success of the Company; and

 

WHEREAS, the Company recognizes the potential benefits of providing employees the opportunity to acquire an equity interest in the Company and to more closely align the personal interests of employees with those of other shareholders; and

 

WHEREAS, effective _____________, pursuant to the Plan, the Compensation Committee of the Board of Directors of the Company:  (a) granted to the Option Holder, pursuant to Section 6 of the Plan, an Option in respect of the number of shares herein below set forth, (b) designated the Option a Non-Qualified Stock Option, and (c) fixed and determined the Option price and exercise and termination dates as set forth below.

 

NOW THEREFORE, in consideration of the mutual promises and representations herein contained and other good and valuable consideration, it is agreed by and between the parties hereto as follows:

 

1.         The terms, provisions and definitions of the Plan are incorporated by reference and made a part hereof.  All capitalized terms in this Agreement shall have the same meanings given to such terms in the Plan except where otherwise noted.

 

2.         Subject to and in accordance with the provisions of the Plan, the Company hereby grants to the Option Holder a Non-Qualified Stock Option to purchase, on the terms and subject to the conditions hereinafter set forth, all or any part of an aggregate of NUMBER OF OPTIONS shares of the Common Stock ($1.00 par value) of the Company at the purchase price of $____ per share, exercisable in the amounts and at the times set forth in this Paragraph 2, unless the Compensation Committee, in its sole and exclusive discretion, shall authorize the Option Holder to exercise all or part of the Option at an earlier date.

 

The Option may be exercised on or after ______________, as provided in the Plan.  

 

[OR]

 

1

 

 

The Option may be exercised in accordance with the following schedule as provided in the Plan:

 

	
             
 	
            If employment
 	
            Percentage of
 

	
             
 	
            continues through
 	
            Option Exercisable
 

 

	
             
 	
            _____________, 20___
 	
            ____%
 

 

	
             
 	
            [or]
 

 

	
             
 	
            _____________, 20___
 	
            ____%
 

 

	
             
 	
            [or]
 

 

	
             
 	
            _____________, 20___
 	
            ____%
 

 

 

In the event of Option Holder’s death or total and permanent disability, Option Holder (or the legal representative of Option Holder’s estate or legatee under Option Holder’s will) shall be able to exercise the Option in full for the remainder of the Option’s term.

 

 [The Option may also be exercised in full for the remainder of the Option’s term in the event Option Holder’s employment with the Company terminates after the Option Holder has attained age 65.]

 

[In addition, the Option may be exercised in the event Option Holder’s employment with Company terminates after Option Holder has attained age 62 (or greater) with 15 or more years of service.]

 

 [The Option may also be exercised in full for the remainder of the Option’s term in the event the Option Holder’s employment is involuntarily terminated by the Company without Cause after Option Holder has attained 10 years of service.  For purposes of this Agreement, “Cause” shall mean (i) the willful and continued failure of Option Holder to perform substantially his or her duties with the Company or one of its subsidiaries; or (ii) the willful engaging by Option Holder in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company.]

 

 [In the event of Option Holder’s separation of employment for any reason other than the reasons listed above, Option Holder shall be able to exercise the Option to the extent the Option was exercisable at the time of such separation of employment for 90 days following the date of such separation of employment.]

 

Unless sooner terminated as provided in the Plan or in this Agreement, the Option shall terminate, and all rights of the Option Holder hereunder shall expire on _____________.  In no event may the Option be exercised after _____________.

3.          The Option or any part thereof, may, to the extent that it is exercisable, be exercised in the manner provided in the Plan.  Payment of the aggregate Option price for the number of shares purchased and any withholding taxes shall be made in the manner provided in the Plan.

 

4.          The Option or any part thereof may be exercised during the lifetime of the Option Holder only by the Option Holder and only while the Option Holder is in the employ of the Company, except as otherwise provided in the Plan.

 

5.          Unless otherwise designated by the Compensation Committee, the Option shall not be transferred, assigned, pledged or hypothecated in any way.  Upon any attempt to transfer, assign, pledge, 

 

2

 

 

hypothecate or otherwise dispose of a nontransferable Option or any right or privilege confirmed hereby contrary to the provisions hereof, the Option and the rights and privileges confirmed hereby shall immediately become null and void.

 

6.          In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, or other change in corporate structure affecting the Company’s Stock, any necessary adjustment shall be made in accordance with the provisions of Section 4.4 of the Plan. 

 

7.          In the event of a Change of Control (as defined in Section 2.8 of the Plan), the provisions of Section 15 of the Plan shall apply.

 

8.          Any notice to be given to the Company shall be addressed to the President of the Company at 1600 First Avenue, Columbus, Georgia 31901.

 

9.          Nothing herein contained shall affect the right of the Option Holder to participate in and receive benefits under and in accordance with the provisions of any pension, insurance or other benefit plan or program of the Company as in effect from time to time and for which the Option Holder is eligible. 

 

10.        Nothing herein contained shall affect the right of the Company, subject to the terms of any written contractual arrangement to the contrary, to terminate the Option Holder’s employment at any time for any reason whatsoever. 

 

11.        This Agreement shall be binding upon and inure to the benefit of the Option Holder, his personal representatives, heirs legatees, but neither this Agreement nor any rights hereunder shall be assignable or otherwise transferable by the Option Holder except as expressly set forth in this Agreement or in the Plan. 

 

Company has issued the Option with foregoing the terms and conditions in accordance with the provisions of the Plan.  You will be deemed to have agreed to the foregoing terms and conditions of the Option, unless you object by notifying the TSYS Compensation Department within 30 days after your receipt of this Agreement. 

 

 

3

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