Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.1

EXECUTION COPY

[CSS]

FIFTH AMENDMENT TO RECEIVABLES PURCHASE AGREEMENT

This FIFTH AMENDMENT (this “Amendment”), dated as of August 1, 2007, is among CSS
FUNDING LLC, a Delaware limited liability company, as seller (the “Seller”), CSS
INDUSTRIES, INC., a Delaware corporation (“CSS”), as initial servicer (in such capacity,
together with its successors and permitted assigns in such capacity, the “Servicer”), the
Sub-Servicers party hereto, MARKET STREET FUNDING LLC (f/k/a Market Street Funding Corporation), a
Delaware limited liability company (together with its successors and permitted assigns, the
“Issuer”), and PNC BANK, NATIONAL ASSOCIATION, a national banking association
(“PNC”), as administrator (in such capacity, together with its successors and assigns in
such capacity, the “Administrator”).

RECITALS

1. The Seller, the Servicer, the Issuer and the Administrator are parties to the Receivables
Purchase Agreement, dated as of April 30, 2001 (as amended, supplemented or otherwise modified from
time to time, the “Agreement”).

2. The Seller, the Servicer, the Issuer and the Administrator desire to amend the Agreement as
hereinafter set forth.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

SECTION 1. Amendments to the Agreement.

1.1 The definition of “Receivable” set forth in Exhibit I to the Agreement is hereby
amended and restated in its entirety as follows:

“Receivable” means any indebtedness and other obligations owed to the Seller
(as assignee of any Originator) or any Originator by, or any right of the Seller or
any Originator to payment from or on behalf of, an Obligor, whether constituting an
account, chattel paper, instrument or general intangible, arising in connection with
the sale of goods or the rendering of services by any Originator, and includes the
obligation to pay any finance charges, fees and other charges with respect thereto;
provided, however, that Excluded Receivables shall not constitute
Receivables. Indebtedness and other obligations arising from any one transaction,
including indebtedness and other obligations represented by an individual invoice or
agreement, shall constitute a Receivable separate from a Receivable consisting of
the indebtedness and other obligations arising from any other transaction.

 

 

 

1.2 Exhibit I to the Agreement is hereby amended by adding the following definition as
alphabetically appropriate:

“Excluded Receivable” means, each account receivable originated by
Paper Magic, as an Originator, arising out of the sale of goods or rendering
of related services of Paper Magic after August 1, 2007, the Obligor of
which is Hudson’s Bay Company or Zellers Inc. (it being expressly
understood and agreed that any account receivable originated by Paper
Magic, as an Originator, arising out of the sale of goods or rendering of
related services of Paper Magic on or prior to August 1, 2007, the Obligor
of which is either Hudson’s Bay Company or Zellers Inc., shall continue to
be a “Receivable” for all purposes of this Agreement and all other
Transaction Documents).

1.3 Schedule II to the Agreement is hereby amended by adding Lock-Box Account
number “2000030514674” maintained at Wachovia Bank, National Association and the associated
P.O. Box “7576 “ .

SECTION 2. Conditions to Effectiveness.

This Amendment shall become effective as of August 1, 2007 subject to the condition precedent
that the Administrator shall have received the following, each duly executed and dated as of the
date hereof (or such other date satisfactory to the Administrator), in form and substance
satisfactory to the Administrator:

(a) counterparts of this Amendment (whether by facsimile or otherwise) executed by each
of the parties hereto; and

(b) such other documents and instruments as the Administrator may reasonably request.

SECTION 3. Representations and Warranties; Covenants.

Each of the Seller, the Servicer and each Sub-Servicer, as applicable, hereby represents and
warrants to the Issuer and the Administrator as follows:

(a) Representations and Warranties. The representations and warranties
contained in Exhibit III of the Agreement are true and correct as of the date hereof
(unless stated to relate solely to an earlier date, in which case such representations or
warranties were true and correct as of such earlier date).

(b) Enforceability. The execution and delivery by each of the Seller, the
Servicer and each Sub-Servicer of this Amendment, and the performance of each of its
obligations under this Amendment and the Agreement, as amended hereby, are within each of
its organizational powers and have been duly authorized by all necessary action on each of
its parts. This Amendment and the Agreement, as amended hereby, are each of the Seller’s, the Servicer’s and each Sub-Servicer’s valid and legally binding
obligations, enforceable in accordance with its terms.

 

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(c) No Default. Immediately after giving effect to this Amendment and the
transactions contemplated hereby, no Termination Event or Unmatured Termination Event exists
or shall exist.

(d) Covenant. Within five (5) Business Days from the date of this Amendment,
the Servicer shall give each of Hudson’s Bay Company and Zellers Inc. a written directive to
remit (or cause to be remitted) all funds with respect to all accounts receivable originated
by Paper Magic, as an Originator, arising out of the sale of goods or rendering of related
services of Paper Magic after August 1, 2007 to an account other than a Lock-Box Account or
the lock-boxes related thereto.

SECTION 4. Effect of Amendment; Ratification. Except as specifically amended hereby,
the Agreement is hereby ratified and confirmed in all respects, and all of its provisions shall
remain in full force and effect. After this Amendment becomes effective, all references in the
Agreement (or in any other Transaction Document) to “the Receivables Purchase Agreement”, “this
Agreement”, “hereof”, “herein”, or words of similar effect, in each case referring to the
Agreement, shall be deemed to be references to the Agreement as amended hereby. This Amendment
shall not be deemed to expressly or impliedly waive, amend, or supplement any provision of the
Agreement other than as specifically set forth herein.

SECTION 5. Authorization to File Financing Statements. Upon the effectiveness of this
Amendment, each of the Issuer and the Administrator hereby authorizes the Seller to file (at the
expense of the Seller) one or more UCC-3 amendments in the form of Exhibit A hereto
amending the UCC-1 financing statements identified on Exhibit B hereto as necessary to
release all liens in respect of the Excluded Receivables.

SECTION 6. Counterparts. This Amendment may be executed in any number of counterparts
and by different parties on separate counterparts, and each counterpart shall be deemed to be an
original, and all such counterparts shall together constitute but one and the same instrument.

SECTION 7. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the internal laws of the State of New York without regard to any otherwise
applicable conflicts of law principles (other than Section 5-1401 of the New York General
Obligations Laws).

SECTION 8. Section Headings. The various headings of this Amendment are inserted for
convenience only and shall not affect the meaning or interpretation of this Amendment or the
Agreement or any provision hereof or thereof.

SECTION 9. Successors and Assigns. This Amendment shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and assigns.

 

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[SIGNATURE PAGES TO FOLLOW]

 

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written
above.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	CSS FUNDING LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Clifford E. Pietrafitta
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Clifford E. Pietrafitta
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Vice President
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	CSS INDUSTRIES, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Clifford E. Pietrafitta
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Clifford E. Pietrafitta
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Vice President
	 

	 	 	 	 	 	 

 

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	BERWICK OFFRAY LLC
	 

	 	 	 	 	 	(f/k/a Berwick Industries LLC),
	 

	 	 	 	 	 	as a Subservicer
	 	 	By:	 	/s/ Christopher J. Munyan
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christopher J. Munyan
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Chairman and Chief Executive Officer
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	CLEO INC,
	 

	 	 	 	 	 	as a Subservicer
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Christopher J. Munyan
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christopher J. Munyan
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Chairman and Chief Executive Officer
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	LION RIBBON COMPANY, INC.,
	 

	 	 	 	 	 	as a Subservicer
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Christopher J. Munyan
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christopher J. Munyan
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Chairman and Chief Executive Officer
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	PAPER MAGIC GROUP, INC.
	 

	 	 	 	 	 	(f/k/a The Paper Magic Group, Inc.),
	 

	 	 	 	 	 	as a Subservicer
	 	 	By:	 	/s/ Christopher J. Munyan
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christopher J. Munyan
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Chairman and Chief Executive Officer
	 

	 	 	 	 	 	 

 

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	MARKET STREET FUNDING LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Doris J. Hearn
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Doris J. Hearn
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Vice President
	 

	 	 	 	 	 	 

 

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	PNC BANK, NATIONAL ASSOCIATION,
	 

	 	 	 	 	 	as Administrator
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ William P. Falcon
	 	 	 	 	 
	 

	 	 	 	Name:
	 	William P. Falcon
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Vice Presidentexhibit101feb12008.htm

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
        10.1

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        	
                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

              	
                12

              
	 	 
	
                Article
                  7. Legal Remedies

              	
                13

              
	 	 
	
                Article
                  8. Outplacement Assistance

              	
                13

              
	 	 
	
                Article
                  9. Successors and Assignment

              	
                13

              
	 	 
	
                Article
                  10. Covenants

              	
                14

              
	 	 
	
                Article
                  11. Miscellaneous

              	
                15

              

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
                

                

          

           

        

        
           

          
            

          

        

        
           

        

      

      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 Compensation Committee of the Company (the “Committee”) 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 Committee 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.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      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.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      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,

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      or
        Retirement or due to a voluntary termination of employment by the Executive
        without Good Reason.

       

      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 twelve (12)
                  months.

              

      

       

      
        	
                 

              	
                (b)    If
                  the
                  Qualifying Termination occurs upon or within twenty-four (24) months
                  following a Change in Control, the Benefit Period is eighteen (18)
                  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 (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

              

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      
        	
                 

              	
                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 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 one and five tenths (1.5) times 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.

              

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        	
                 

              	
                (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.

              

      

       

      
        	
                 

              	
                (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.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      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 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.

              

      

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      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).

       

      Article
        5. Excise Tax Treatment

      5.1    Excise
        Tax
        Equalization Payment.

       

      
        	
                 

              	
                 

              	
                (a)    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 “Total 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), except
                  as
                  provided in subsection (b) below, the Company shall pay to the
                  Executive
                  in cash an additional amount (the “Gross-Up Payment”) such that the net
                  amount to be retained by the Executive after deduction of any Excise
                  Tax
                  upon the Total Payments and any Federal, state and local income,
                  FICA and
                  other payroll tax and Excise Tax upon the Gross-Up Payment provided
                  for by
                  this Section 5.1 shall be equal to the Total Payments.  Such
                  payment shall be made by the Company to the Executive on or before
                  the
                  date on which the applicable taxes are remitted by the Company
                  to the
                  taxing authorities, and all such payments shall be made in accordance
                  with
                  Section 409A of the Code.

              

      

       

      
        	
                 

              	
                 

              	
                (b)    Notwithstanding
                  subsection (a), if it shall be determined that the Parachute Value
                  (as
                  defined below) of the Total Payments is more than one hundred percent
                  (100%) but less than one hundred ten percent (110%) of the Safe
                  Harbor
                  Amount (as defined below), then no Gross-Up Payment shall be paid
                  to the
                  Executive.  The term “Parachute Value” means the present value,
                  as of the date of the change of control for purposes of Section
                  280G of
                  the Code, of those Total Payments that are  “parachute payments”
                  under Section 280G of the Code.  The term “Safe Harbor Amount”
                  means 2.99 times the Executive’s “base amount,” within the meaning of
                  Section 280G(b)(3) of the Code.

              

      

       

      
        	
                 

              	
                (c)    In
                  the
                  event that the Company does not pay a Gross-Up Payment as described
                  in
                  subsection (b), the aggregate present value of the Payments (as
                  defined
                  below) under this Agreement shall be reduced (but not below zero)
                  to the
                  Reduced Amount (as defined below), if reducing the Payments will
                  provide
                  the Executive with a greater net after-tax amount than would be
                  the case
                  if no reduction was made.  The term “Payment” means any benefit
                  or payment in the nature of compensation (within the meaning of
                  Section
                  280G(b)(2) of the Code) under this Agreement.  The “Reduced
                  Amount” shall be an amount expressed in present value which maximizes the
                  aggregate present value of Payments under this Agreement 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.

              

      

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      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 Total Payments will be subject to the Excise Tax and the amount of
        such
        Excise Tax:

       

      
        	
                 

              	
                (a)    The
                  amount of the Total 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.

       

      5.3    Subsequent
        Recalculation.  In the event that a Gross-Up Payment is
        payable and the Internal Revenue Service proposes to increase the amount
        of
        Excise Tax payable by the Executive in excess of the computation of the Company
        under Section 5.2 herein so that the Executive did not receive the greatest
        net benefit, the Company shall reimburse the Executive within 30 days of
        the
        date of the recalculation for the full amount necessary to make the Executive
        whole, plus interest as described in Section 4.4; provided, however, that
        the
        Executive follows the procedures set forth in this Section 5.3.

       

      The
        Executive shall notify the Company in writing of any claim by the Internal
        Revenue Service that, if successful, would require the payment by the Company
        of
        the Gross-Up Payment.  Such notification shall be given as soon as
        practicable but no later than ten business days after the later of either:
        (i)
        the date the Executive has actual knowledge of such claim, or (ii) the date
        Internal Revenue Service issues to the Executive either a written report
        proposing imposition of the Excise Tax or a statutory notice of deficiency
        with
        respect thereto, and shall apprise the Company of the nature of such claim
        and
        the date on which such claim is requested to be paid.  The Executive
        shall not pay such claim prior to the expiration of the 30 day period following
        the date on which it gives such notice to the Company (or such shorter period
        ending on the date that any payment of taxes with respect to such claim is
        due).  If the Company notifies the Executive in writing prior to the
        expiration of such period that it desires to contest such claim, the Executive
        shall:

       

      
        	
                 

              	
                (a)    Give
                  the Company any information reasonably requested by the Company
                  relating
                  to such claim;

              

      

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      
        	
                 

              	
                (b)    Take
                  such action in connection with contesting such claim as the Company
                  shall
                  reasonably request in writing from time to time, including, without
                  limitation, accepting legal representation with respect to such
                  claim by
                  an attorney reasonably selected by the
                  Company;

              

      

       

      
        	
                 

              	
                (c)    Cooperate
                  with
                  the Company in good faith in order effectively to contest such
                  claim;
                  and

              

      

       

      
        	
                 

              	
                (d)    Permit
                  the Company to participate in any proceedings relating to such
                  claims.

              

      

       

      The
        Company shall directly bear and pay all costs and expenses (including additional
        interest and penalties) incurred in connection with such contest and shall
        indemnify and hold the Executive harmless, on an after-tax basis, for any
        Excise
        Tax or income or payroll tax, including interest and penalties with respect
        thereto, imposed and payment of costs and expenses. Without limitation of
        the
        foregoing provisions of this Section 5.3, the Company shall control all
        proceedings taken in connection with such contest and, at its sole option,
        may
        pursue or forego any and all administrative appeals, proceedings, hearings,
        and
        conferences with the taxing authority in respect of such
        claim.

       

      If
        the
        Company does not notify the Executive in writing prior to the expiration
        of such
        30 day period that it desires to contest such claim, the Company shall reimburse
        the Executive for the full amount necessary to make the Executive whole in
        accordance with the limitations set forth in Article 4, plus a market rate
        of
        interest, as determined by the Committee, all as contemplated by this Section
        5.3.

       

      If,
        after the receipt by the Executive
        of an amount advanced by the Company pursuant to this Article 5.3, the Executive
        receives a refund with respect to such claim due to an overpayment
        of  Excise Tax, including interest and penalties with respect thereto,
        the Executive shall (subject to the Company’s complying with the requirements of
        this Section 5.3) promptly pay to the Company the amount of such refund
        (together with any interest paid or credited thereon after taxes applicable
        thereto).

       

      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 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.

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      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 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 

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      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.

       

      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.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      (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
        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]

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      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. 

       

      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.

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      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:________________________

              	 

      

      

      
        
           

        

        
          17

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