Document:

EXHIBIT 10.27

                                MOVIE STAR, INC.
                                  1115 BROADWAY
                            NEW YORK, NEW YORK 10010

                                           As of November 28, 2006

Saul Pomerantz

     Re:  Amended and Restated Employment Agreement dated as of October 13, 2006

Dear Saul:

     We refer you to your Amended and Restated Employment Agreement, dated as of
October 13, 2006 ("Employment Agreement"), with Movie Star, Inc. ("Company").
This letter will serve to amend your Employment Agreement as set forth below,
effective as of November 28, 2006. Except as herein amended, all other
provisions of the Employment Agreement shall remain in full force and effect.

     1. The last sentence of Section 2 (Term) shall be deleted in its entirety
     and replaced with the following:

          "Unless the Company and Executive have otherwise agreed in writing, if
     Executive continues to work for the Company after the expiration of the
     Term, his employment thereafter shall be under the same terms and
     conditions provided for in this Agreement, except that his employment will
     be on an "at will" basis and the provisions of Section 4.4 and Section
     4.6(d)(i), (ii) and (vi) shall no longer be in effect."

     2. Section 3.2 shall be deleted in its entirety and replaced with the
     following:

          "3.2 Bonus. In addition to Base Salary, for each of the fiscal years
     ending June 30, 2007, 2008 and 2009, Executive shall be paid a bonus
     ("Bonus") in accordance with the terms of the Company's senior executive
     incentive compensation pool as adopted by the Compensation Committee of the
     Board of Directors in September 1998 ("1998 Incentive Plan"), in an amount
     equal to 1.25 percent (1.25%) of the Company's net income before taxes and
     before calculation of all bonuses under the 1998 Incentive Plan for such
     fiscal year, and excluding the expenses that the Company records for
     accounting purposes as transaction expenses associated with a Significant
     Acquisition or a prospective Significant Acquisition in accordance with
     Generally Accepted Accounting Principles ("Net Income") in excess of
     $1,200,000 and up to $3,200,000, and equal to 1.75 percent (1.75%) of Net
     Income in excess of $3,200,000 ("Bonus Calculation"). Any amounts due under
     this Section 3.2 shall be payable to the Executive within 90 days of the
     end of the applicable fiscal year in a cash lump-sum payment.
     Notwithstanding the foregoing, if a Significant Acquisition is completed,
     the Bonus Calculation shall be based on the Net Income of only that portion
     of the Company's operations that are comparable to the Company's operations
     immediately prior to a Significant Acquisition. By way of example, and not
     of limitation, the operations of the Company as of the date of this
     Agreement are designing, manufacturing (through independent contractors),
     importing and wholesaling women's intimate apparel."

     3. Section 4.6(d) shall be deleted in its entirety and replaced with the
     following:

          "(d) Payment Upon Termination by Company Without Cause, by Executive
     for "Good Reason" or Following Expiration of Term. In the event that
     Executive's employment is terminated pursuant to Section 4.4 or 4.5, or if
     the Company does not continue Executive's employment at the end of the Term
     and thereafter upon terms substantially similar to the terms of this
     Agreement (excluding the option grant referred to in Section 3.3 and
     excluding the commitment to offer employment for a specified term), the
     Company shall have no further obligations to Executive hereunder except
     for: (i) the Base Salary due Executive pursuant to Section 3.1 hereof
     through the end of the Term; (ii) any Bonus which would have become payable
     under Section 3.2 through the end of the Term; (iii) all earned and
     previously approved but unpaid Bonuses; (iv) all valid expense
     reimbursements; (v) all accrued but unused vacation pay; (vi) the benefits
     set forth in Sections 3.4 and 3.6 through the end of the Term ; (vii) the
     sum of $200,000.00, which shall be paid in equal installments in accordance
     with the Company's normal payroll procedures, so that the entire amount
     shall be received by Executive by March 15th of the calendar year following
     the date of termination of employment; and (viii) medical coverage at the
     Company's expense for one year commencing on either (a) the last day of the
     Term if Executive's employment is terminated during the Term or (b) the
     date of termination if Executive's employment is terminated at any time
     after the end of the Term; provided, however, that Executive's medical
     coverage shall terminate upon the Executive becoming covered under a
     similar program by reason of employment elsewhere. The provisions of
     Section 4.6(d)(iii), (iv), (v), (vii) and (viii) shall survive termination
     of this Agreement, as applicable.

     4. Section 6.7 shall be deleted in its entirety and replaced with the
     following:

          "6.7 Survival. The provisions of this Section 6 shall survive the
     termination of this Agreement for any reason, except in the event Executive
     is terminated by the Company without "Cause", or if Executive terminates
     this Agreement with "Good Reason," in either of which events, Section 6.4
     shall be null and void and of no further force or effect.

     Please confirm your agreement to the foregoing by countersigning and
returning a copy of this letter.

                                        MOVIE STAR, INC.

                                        By: /s/ Melvyn Knigin
                                            ------------------------------------
                                            Melvyn Knigin
                                            President and Chief Executive
                                            Officer

AGREED:

/s/ Saul Pomerantz
-------------------------------------
Saul Pomerantz

                                       2exv10w54

 

    Exhibit 10.54

 

    Severance
    and Release Agreement dated October 20, 2006 between HEI,
    Inc. and Mack V. Traynor III

 

    SEVERANCE
    AND RELEASE AGREEMENT

 

    In exchange for the promises and covenants contained herein,
    HEI, Inc. (“Company”) and Mack V. Traynor III
    (“Employee”) hereby agree as follows:

 

    1. Definitions.  We intend all
    words used in this Severance Agreement (“Agreement”)
    to have their plain meanings in ordinary English. Specific terms
    we use in this Agreement have the following meanings:

 

    A. Employee, as used herein, shall include
    the undersigned Employee and anyone who has obtained any legal
    rights or claims through the undersigned Employee.

 

    B. Company, as used herein, shall at all
    times mean HEI, Inc., its parent company, its subsidiaries,
    successors and assigns, its affiliated and predecessor
    companies, their successors and assigns, their affiliated and
    predecessor companies and the present or former directors,
    shareholders, officers, employees, representatives and agents
    (including, without limitation, its accountants and attorneys)
    of any of them, whether in their individual or official
    capacities, and the current and former trustees or
    administrators of any pension or other benefit plan applicable
    to employees or former employees of Company, in their official
    or individual capacities.

 

    C. Employee’s Claims, as used herein,
    means all of the rights Employee individually and on behalf of
    his spouse, heirs, administrators, executors, assigns has now to
    any relief of any kind from Company whether or not Employee now
    knows about those rights, arising out of his employment with
    Company and member of the Board of Directors, and his
    resignation of employment and as a member of the Company’s
    Board of Directors, including, but not limited to, claims
    arising under the Age Discrimination in Employment Act, as
    amended by the Older Worker Benefit Protection Act; the
    Minnesota Human Rights Act; the Americans with
    Disabilities Act; Title VII of the Civil Rights Act of
    1964, as amended; claims under the Family Medical Leave Act; the
    Fair Labor Standards Act of 1938, as amended; the Worker
    Adjustment and Retraining Act, the Sarbanes Oxley Act; the
    Minnesota Whistleblower Statute; or other federal, state or
    local civil rights laws; claims for breach of contract; fraud or
    misrepresentation; defamation, intentional or negligent
    infliction of emotional distress; breach of covenant of good
    faith and fair dealing; promissory estoppel; negligence;
    wrongful termination of employment; claims pursuant to that
    certain Employment Agreement dated April 19, 2004 between
    Employee and Company; claims for any form of compensation,
    including without limitation, claims for severance, salary,
    bonus, and vacation pay; and any other claims for unlawful
    employment practices.

 

    2. Resignation.  Company and
    Employee agree that Employee will voluntarily resign his
    employment as Chief Executive Officer and President of the
    Company and as a member of Company’s Board of Directors
    effective Friday, October 20, 2006 and the Company has
    accepted his resignation effective Friday, October 20, 2006.

 

    3. Company’s Obligations and Severance
    Agreements.  In consideration for
    Employee’s promises contained herein, specifically
    including, but not limited to the release of all claims by
    Employee and Employee’s promises to refrain from:
    (i) competing with the Company; (ii) soliciting the
    Company’s clients and employees; and (iii) disclosing
    confidential information and trade secrets of Company, Company
    agrees as follows:

 

    A. Severance Payment.  Company
    agrees to pay to Employee a Severance payment of $145,000
    (“Severance Payment”). This Severance Payment will be
    payable in one lump sum after the expiration of the Rescission
    Periods, as hereinafter defined. The Severance Payment shall be
    subject to federal and state withholding taxes and FICA.

 

    B. Stock Options/Restricted
    Shares.  Company acknowledges and agrees that
    Employee shall have a period of 90 days from the date of
    this Agreement to exercise the following stock option agreements:

 

    (i) Option agreement dated March 19, 2003.

 

    (ii) Option agreement dated December 19, 2001.

 

    (iii) Option agreement dated July 1, 2005.

 

    Company and Employee agree that all remaining stock options and
    restricted shares have not vested and may be cancelled.

 

    C. Medical Insurance Benefits and
    Benefits.  Company, pursuant to federal and
    state law, will provide, for a period of eighteen
    (18) months following the effective date of Employee’s
    termination (“COBRA Period”), a continuation of the
    group medical insurance coverage previously provided to Employee
    by Company. Through April 19, 2007, Company will pay that
    portion of the premium for group medical insurance that it paid
    during Employee’s employment. After April 19, 2007,
    Employee will be required to pay for such benefits for the
    remainder of the COBRA Period, should Employee elect to continue
    COBRA coverage. Company shall also, through April 19, 2007,
    maintain and pay for all the benefits provided under the
    April 19, 2004 Employment Agreement between Employee and
    Company, a copy of which is attached hereto as
    Exhibit A to this Agreement, including dental
    insurance and supplemental life insurance coverage.

 

    D. Computer, Blackberry and Cellular
    Phone.  Employee shall be allowed to retain
    possession of the Company computer (once the Company has
    securely erased all Company documentation), blackberry and
    cellular phone assigned to him during his employment with the
    Company. The Company will continue service on the Company
    blackberry and cellular phone assigned to Employee until
    October 31, 2006.

 

    E. Non-Disparagement.  Company
    agrees that its officers, directors and senior management shall
    not disparage or defame Employee in any respect.

 

    F. Remedies.  Company acknowledges
    that any breach of any of the promises set forth in
    Section 3.E. will cause Employee irreparable harm for which
    there is no adequate remedy at law and Company therefore
    consents to the issuance of any injunction in favor of Employee
    enjoining the breach of any of those promises by any court of
    competent jurisdiction. Company further agrees that the remedies
    provided for herein are in addition to, and are not to be
    construed as replacements for, or a limitation of, rights and
    remedies otherwise available to Employee.

 

    4. Employee Obligations.  As
    material inducement to Company in entering into this Agreement
    and providing the consideration described in Section 3,
    Employee hereby agrees as follows:

 

    A. Release.  Employee agrees to
    release all Employee’s Claims. Employee acknowledges that
    the money and promises received and to be received by Employee
    are in exchange for the release of Employee’s Claims.
    Employee is not releasing any rights
    and/or
    obligations he may have as holder of shares
    and/or
    options of the Company and Employee’s rights
    and/or
    obligations in any shares
    and/or
    options of the Company shall be controlled by the terms and
    conditions of applicable stock and option agreements, if any,
    entered into between Company and Employee.

 

    B. Covenant Not To Sue.  Employee
    agrees that he will not initiate any litigation to pursue claims
    which Employee released in this Section 4.A. This covenant
    does not apply to litigation challenging the validity of this
    Section 4.A. Further, Employee agrees to pay Company’s
    attorneys fees if Employee breaches the covenant not to sue
    contained in this Section 4.B.

 

    C. Company Property.  Unless
    otherwise stated herein, Employee will return all property
    belonging to Company to Company immediately upon the execution
    of this Agreement, whether such property is currently on or off
    the premises of Company, including, without limitation, any and
    all Company documents on the computer hardware being retained by
    Employee.

 

    D. Non-Competition, Non-Solicitation, Confidentiality
    and Inventions.  Employee acknowledges and
    confirms his continuing obligations to the Company to
    (1) refrain from competition and solicitations,
    (2) maintain the confidentiality of the Company’s
    Confidential Information and (3) disclose and transfer
    ownership, if necessary, of all Inventions, all of which shall
    survive Employee’s separation from employment with the
    Company, as more fully set forth in Sections 6, 7, 8
    and 9 of the Agreement attached as
    Exhibit A.  Notwithstanding the foregoing,
    the term of such obligations shall expire one year from the date
    of this Agreement.

 

    E. Confidentiality of
    Agreement.  Employee agrees that he will keep
    the terms and conditions of this Agreement strictly confidential
    for a period of at least one year from the date of this
    Agreement except that Employee may disclose the terms and
    conditions of this Agreement to his spouse, if any, attorney,
    tax preparer, government agencies, or as required by law.
    Employee agrees that in the event that Employee discloses any of

 

    the terms of this Agreement, including the fact of payment other
    than as set forth above, he shall be liable to Company as set
    forth in Section 4. of this Agreement and for any and all
    injuries or damages sustained by Company including costs,
    disbursements and attorneys’ fees incurred by Company as a
    direct result of Employee’s disclosure.

 

    F. Non-Disparagement.  Employee
    agrees that he shall not disparage or defame Company in any
    respect.

 

    G. Remedies.  Employee acknowledges
    that any breach of any of the promises set forth in
    Sections 4.C., 4.D., 4.E. and 4.F. will cause Company
    irreparable harm for which there is no adequate remedy at law
    and Employee therefore consents to the issuance of any
    injunction in favor of Company enjoining the breach of any of
    those promises by any court of competent jurisdiction. If any
    promise made by Employee in this Section 4 should be held
    to be unenforceable because of its scope or duration, or the
    area or subject matter covered thereby, Employee agrees that the
    court making such determination shall have the power to reduce
    or modify the scope, duration, subject matter or area of that
    promise to the extent that allows the maximum scope, duration,
    subject matter or area permitted by applicable law. Employee
    further agrees that the remedies provided for herein are in
    addition to, and are not to be construed as replacements for, or
    a limitation of, rights and remedies otherwise available to
    Company.

 

    5. Employee’s
    Understandings.  Employee acknowledges and
    represents that:

 

    A. Employee understands that he has the right to consult
    with an attorney regarding the meaning and effect of this
    Agreement.

 

    B. Employee also understands that he has a period of
    twenty-one (21) calendar days from the date on which he
    receives an unsigned copy of this Agreement in which to consider
    whether or not to sign this Agreement and that, having been
    advised of that entitlement, he may elect to sign this Agreement
    at any time prior to the expiration of that time period.

 

    C. Employee understands that he may rescind (that is,
    cancel) within seven (7) calendar days of signing the
    Agreement the provisions of Section 4.A. of this Agreement
    with respect to claims arising under the Age Discrimination in
    Employment Act (“ADEA Rescission Period”) and that he
    may rescind within fifteen (15) calendar days of
    signing the Agreement the provisions of Section 4.A. of
    this Agreement with respect to claims arising under the
    Minnesota Human Rights Act (“MHRA Rescission Period”)
    (collectively, “Rescission Periods”). To be effective,
    rescission must be in writing, delivered to Company at HEI,
    Inc., PO Box 5000, 1495 Steiger Lake Lane, Victoria, MN
    55386, Attn: Mark Thomas within the applicable rescission
    period, or sent to Company, at such address, by certified mail,
    return receipt requested, postmarked within the applicable
    rescission period.

 

    6. Cancellation of Agreement By
    Company.  If Employee exercises his right of
    rescission under Section 5.C. of this Agreement, Company
    will have the right, exercisable by written notice delivered to
    Employee, to terminate this Agreement in its entirety, in which
    event Company will have no obligation whatsoever to Employee
    hereunder. If Employee exercises his right of rescission under
    Section 5.C. of this Agreement, and Company does not
    exercise its right to terminate this Agreement hereunder, the
    remaining provisions of this Agreement (including specifically
    the remaining provisions of Section 4 of this Agreement)
    shall remain valid and continue in full force and effect.

 

    7. Performance By
    Employee.  Nothing contained herein shall
    operate as a waiver or an election of remedies by Company should
    Employee fail to perform any duty or obligation imposed upon him
    hereunder. Notwithstanding anything contained herein to the
    contrary, this Agreement and the duties and obligations of
    Employee hereunder shall continue in full force and effect
    irrespective of any violation of any term or provision of this
    Agreement by Employee.

 

    8. No Admission Of Liability.  The
    Parties agree that this Agreement shall not be considered an
    admission of liability by Company. Company expressly denies that
    it is in any way liable to Employee or that it has engaged in
    any wrongdoing with respect to Employee.

 

    9. Employee
    Acknowledgments.  Employee acknowledges and
    represents that: (a) he has read this Agreement and
    understands its consequences; (b) he has received adequate
    opportunity to read and consider this Agreement; (c) he has
    determined to execute this Agreement of his own free will and
    acknowledges that he has not relied upon any statements or
    explanations made by Company regarding this Agreement; and
    (d) the promises of

 

    Company made in this Agreement constitute fair and adequate
    consideration for the promises, releases and agreements made by
    Employee in this Agreement.

 

    10. Entire Agreement.  This
    Agreement, including any exhibits attached hereto or documents
    expressly referred to herein, contains the entire agreement
    between Company and Employee and supersedes and cancels any and
    all other agreements, whether oral or in writing, between
    Company and Employee with respect to the matters referred to
    herein.

 

    11. Governing Law.  This Agreement
    shall be construed and enforced in accordance with the laws of
    the State of Minnesota.

 

    12. Effective Date.  This Agreement
    was originally offered to Employee on or about October 20,
    2006. Employee shall have until the close of business on
    November 10, 2006 to accept this Agreement. If Employee
    desires to accept this Agreement, Employee shall execute the
    Agreement and return the same to Company at the address set
    forth in Section 5.C. hereof. If Employee does not so
    accept this Agreement, this Agreement, and the offer contained
    herein, shall be null and void as of the close of business on
    November 20, 2006.

 

    (The remainder of the page is intentionally left blank.)

 

    13. Counterparts.  This Agreement
    may be executed in counterparts with an executed counterpart to
    be delivered to the other party. Each such executed counterpart
    shall be deemed an original but shall constitute one and the
    same instrument.

 

    HEI, Inc.

 

			
	 	    By: 
	
    /s/  Mark
    B. Thomas 

    Its: CFO

 

    Dated: 10-20-06

 

    /s/  Mack
    V. Traynor III

    Mack V. Traynor III

 

    Dated: 10-20-06

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