Document:

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                                                                   EXHIBIT 10.44

                    SERIES D PREFERRED STOCKHOLDERS AGREEMENT

     This SERIES D PREFERRED STOCKHOLDERS AGREEMENT (the "Agreement"), dated as
of August 13, 2003, by and among IPG PHOTONICS CORPORATION, a Delaware
corporation (the "Company"), and JDS UNIPHASE CORPORATION, a Delaware
corporation, and any permitted assignees or transferees thereof (each, a
"Stockholder" and collectively, the "Stockholders").

     WHEREAS, it is a condition to the Subscription Agreement between the
Company and the Stockholder, dated as of August 13, 2003 (the "Subscription
Agreement") that the Stockholder enter into this Agreement with the Company.

     NOW, THEREFORE, in consideration of the foregoing and the mutual promises
of the parties herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Company and the
Stockholder hereby covenant and agree with each other as follows:

Section 1 Restrictions on Transfer.

     1.1. Restrictions on Transfer. Without limiting any other restriction
contained in this Agreement, the Stockholder may not sell, assign, transfer,
pledge, bequeath, hypothecate, mortgage, grant any proxy with respect to, or in
any other way encumber or otherwise dispose of, directly or indirectly
(including any sale of the equity in an entity owning any shares of Series D
Preferred Stock) (collectively, a "Transfer") any shares of Series D Preferred
Stock or the shares of Common Stock, $.0001 par value per share ("Common
Stock"), of the Company issuable upon conversion of the Series D Preferred Stock
(such Series D Preferred Stock together with the Common Stock, the "Shares") or
the Convertible Promissory Note of the Company dated the date hereof (the
"Convertible Note"), for the period commencing the date hereof and ending on the
earlier of (i) the first anniversary date of the date of this Agreement or (ii)
one hundred eighty (180) days after the effective date of the registration
statement covering the Company's initial public offering of securities pursuant
to the Securities Act of 1933, as amended (the "Restricted Period"), except
pursuant to a Permitted Transfer, as defined in Section 1.2 hereof.

     Notwithstanding anything herein to the contrary, the Stockholder may not
Transfer any Shares or the Convertible Note to any Person (other than the
Company), anywhere in the world, whose business, activities, products or
services are competitive with any of the business activities, products or
services conducted or offered by the Company and its subsidiaries, which
business, activities, products and services shall include in any event and
without limitation the business of manufacturing and testing of fiber
amplifiers, fiber lasers and fiber grating products and related products for the
telecommunications and industrial markets, or to any Affiliate (as defined
herein) of such Person. For the purposes of this Agreement, "Person" shall mean
any individual, corporation, partnership, limited liability company, joint
venture, association or other business entity.

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     1.2. Permitted Transfer. The terms and conditions of the first paragraph of
Section 1.1 hereof shall not apply to any Permitted Transfer by any Stockholder.
For purposes of this Agreement, "Permitted Transfer" means any transfer without
consideration by the Stockholder to any of its Affiliates, stockholders, members
or partners (any person to whom a Permitted Transfer is made being defined as a
"Permitted Transferee"); provided, that it shall be a condition of such Transfer
(A) that the Permitted Transferee agree to be bound by the terms and conditions
of this Agreement as a Stockholder, and execute a counterpart signature page of
this Agreement (in which case such Permitted Transferee shall be deemed a
Stockholder hereunder), and (B) voting control over the Shares to be transferred
shall be retained by the transferring Stockholder (to the extent possible). For
purposes of this Agreement, an "Affiliate" of a Stockholder or Person shall mean
a person that directly, or indirectly through one or more intermediaries,
controls, or its controlled by, or is under common control with, such
Stockholder or Person, respectively, and subject to the limitations of Sections
3 and 4 hereof.

     1.3. General. The Shares and the Convertible Note may not be Transferred
except after compliance with the conditions specified in Section 1 hereof. Any
attempt by any Stockholder to transfer any Shares or the Convertible Note in
violation of any provision of this Agreement will be void. The Company will not
be required (a) to transfer on its books any Shares or the Convertible Note that
have been transferred in violation of this Agreement, or (b) to treat as owner
of such Shares or the Convertible Note, or to accord the right to vote or pay
dividends to any purchaser, donee or other transferee to whom such Shares or the
Convertible Note may have been so transferred.

     1.4. Legend.

          (a) Each certificate representing Shares shall (unless otherwise
permitted by the provisions of Section 1.6 hereof) be stamped or otherwise
imprinted with a legend in substantially the following form:

               "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN
               ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE
               SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS.
               THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF
               SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT AND
               APPLICABLE STATE SECURITIES LAWS."

          (b) Each certificate representing Shares shall (unless otherwise
permitted by the provisions of Section 1.6 hereof) be stamped or otherwise
imprinted with a legend in substantially the following form:

               "THE TRANSFER AND OTHER MATTERS PERTAINING TO THESE SECURITIES
               ARE SUBJECT TO THE CONDITIONS SPECIFIED IN THE SERIES D PREFERRED
               STOCKHOLDERS AGREEMENT, DATED AS OF AUGUST 13, 2003, AMONG IPG
               PHOTONICS CORPORATION (THE "COMPANY"), AND THE SERIES D PREFERRED
               STOCKHOLDERS OF THE COMPANY, AS AMENDED FROM TIME TO TIME, AND NO
               TRANSFER OF THESE

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               SECURITIES SHALL BE VALID OR EFFECTIVE UNTIL SUCH CONDITIONS HAVE
               BEEN FULFILLED. COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO
               COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS
               CERTIFICATE TO THE SECRETARY OF THE COMPANY."

     1.5. Procedures for Transferring. Upon request by the Company, if the
Stockholder desires to Transfer Shares, it shall first give notice to the
Company describing such Transfer and furnish to the Company, at the
Stockholder's expense, either (i) an opinion, reasonably satisfactory to counsel
for the Company, of Winston & Strawn, or other counsel skilled in securities
matters (selected by the Stockholder and reasonably satisfactory to the Company)
to the effect that the proposed sale or transfer may be made without
registration under the Securities Act of 1933, as amended (the "Securities
Act"), or (ii) an interpretive letter from the staff of the Securities and
Exchange Commission to the effect that no enforcement action will be recommended
if the proposed sale or transfer is made without registration under the
Securities Act, in either case accompanied by evidence that such transfer will
be in compliance with applicable state securities ("blue sky") laws; provided,
however, that the foregoing shall not apply with respect to (1) any Transfer
pursuant to an effective registration statement under the Securities Act, or (2)
any Transfers between the Stockholder and any Affiliate of the Stockholder for
its own account. Each certificate or other instrument evidencing the securities
issued upon the Transfer of any Shares (and each certificate or other instrument
evidencing any untransferred balance of such Shares) shall bear the legends set
forth in Section 1.4 hereof.

     1.6. Termination of Restrictions.

          (a) If (i) any Shares are Transferred pursuant to an effective
registration statement under the Securities Act or in a transaction contemplated
by Section 1.5 hereof which does not require that the Shares so transferred bear
the legend set forth in Section 1.4(a) hereof or (ii) the holder of Shares has
met the requirements for Transfer of such Registrable Shares under Rule 144(k)
under the Securities Act (subject to the delivery of opinions as set forth
above), then the holder of such Shares shall be entitled to receive from the
Company, without expense, a new certificate in the name of the Stockholder not
bearing the restrictive legend set forth in Section 1.4(a) hereof.

          (b) In accordance with the termination provisions set forth in Section
5.1 hereof, the holders of Shares shall be entitled to receive from the Company,
without expense, new certificates in the name of the Stockholder not bearing the
restrictive legend set forth in Section 1.4(b) hereof.

Right to Participate in Certain Sales of Additional Securities.

     1.7. Subject to Section 2.3 hereof, the Company agrees it will not, without
the approval of the Majority Interest (as defined below in this Section 2.1(a),
sell or issue for cash (a) any shares of capital stock of the Company or (b)
debt or securities convertible into or exercisable or exchangeable for capital
stock of the Company, unless the Company first submits a written notice to the
Stockholder identifying the terms of the proposed sale (including price, number
or aggregate principal amount of

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securities and all other material terms), and offers to the Stockholder the
opportunity to purchase its Pro Rata Allotment (as hereinafter defined) of the
securities on terms and conditions, including price, not less favorable than
those on which the Company proposes to sell such securities to a third party or
parties. The Stockholder's Pro Rata Allotment of such securities shall be based
on the ratio which the number of Shares owned by the Stockholder (including any
convertible securities) bears to all of the issued and outstanding shares of
Common Stock (including all shares of Common Stock then issuable upon conversion
of (i) all series of preferred stock, (ii) other securities of the Company that
are convertible into Common Stock pursuant to then exercisable rights of
conversion, and (iii) options and warrants to purchase Common Stock of the
Company which are exercisable, in each case as of the date of such written
offer. The Company's offer pursuant to this Section 2 may be given
simultaneously with the other similar notices given by the Company and shall
remain open and irrevocable for a period of thirty (30) calendar days following
receipt by the Stockholder of such written notice, and the Stockholder shall
elect to purchase the securities so offered by giving written notice thereof to
the Company within such 30-day period, including therein the maximum number of
shares of capital stock or other securities of the Company which the Stockholder
wishes to purchase. Any securities so offered which are not purchased by the
Stockholder pursuant to such offer may be sold by the Company, but only on the
terms and conditions set forth in the initial offer, at any time within 120
calendar days following the termination of the above-referenced 35-day period,
but may not be sold to any other Person or on terms and conditions, including
price, that are more favorable to the purchaser than those set forth in such
offer or after such 120-day period without renewed compliance with this Section
2. In no event shall the Stockholder's right to purchase pursuant to this
Section 2 permit it to acquire in any offering more than 2% of the Company's
issued and outstanding shares of common stock on a fully diluted basis at the
time of such issuance (including all convertible securities and outstanding
options). "Majority Interest" shall mean the Stockholders holding not less than
a majority interest in the outstanding Shares.

     1.8. Notwithstanding the foregoing, the right to purchase granted under
this Section 2 shall be inapplicable with respect to (i) the issuance of shares
of Common Stock issued or issuable in connection with, or upon the exercise of,
options or other awards granted or to be granted to employees, officers,
directors or consultants of the Company pursuant to the Company's 2000 Incentive
Compensation Plan as amended from time to time or any other equity incentive
plan or award duly approved by the Board of Directors of the Company ("Excluded
Shares"), plus such number of Excluded Shares that are repurchased by the
Company from such Persons in accordance with the certificate of incorporation of
the Company, as in effect from time to time, pursuant to contractual rights held
by the Company and at repurchase prices not exceeding the respective original
purchase prices (appropriately adjusted (i) for any stock split, stock dividend,
combination, recapitalization, anti-dilution right and the like) paid by such
Persons to the Company therefore, (ii) securities issued as a result of any
stock split, stock dividend, reclassification or reorganization or similar event
with respect to the Shares or other securities of the Company, (iii) securities
issued pursuant to the anti-dilution rights of any holder of equity securities
or securities exercisable for or exchangeable or convertible into equity
securities of the Company; (iv) securities issued pursuant to the closing of a
Qualified IPO (as defined in the certificate of designations of the certificate
of incorporation of the Company pertaining to the Series D Preferred Stock, as
amended from time to time); (v) securities issued in connection with a

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strategic alliance or other corporate partnering transaction; (vi) securities
issued in exchange for the stock or assets of another company in connection with
the acquisition of or merger into such company; (vii) exercise or conversion of
convertible securities outstanding on the date hereof; or (viii) shares of
Common Stock issued upon conversion of, or as a dividend on (W) the Series A
Convertible Preferred Stock, par value $.0001, of the Company, (X) the Series B
Convertible Preferred Stock, par value $.0001, of the Company (the "Series B
Preferred Stock"), and (Y) the Series D Convertible Preferred Stock.

     1.9. Series B Preferred Rights. Notwithstanding anything herein to the
contrary, the preemptive rights granted to the Stockholder pursuant to this
Section 2 shall be pari passu with the preemptive rights granted to holders of
Series B Preferred Stock pursuant to the Stockholders Agreement, dated August
30, 2000, as amended from time to time, by and among the Company, the Founders
(as defined therein), IP Fibre Devices, Ltd. and those individuals identified on
the signature pages thereto as "Investors".

Section 2 Financial Information. The Company will maintain a system of accounts
in accordance with U.S. generally accepted accounting principles, keep full and
complete financial records and furnish to each Purchaser all of the financial
reports of the Company that are supplied to the holders of the Series B
Preferred Stock (in their capacity as holders of Series B Preferred Stock), in
the same frequency and manner. The Company shall also provide to the Company a
copy of financial information (e.g., income statements, balance sheets and cash
flows) submitted to the members of the Board of Directors of the Company, except
for information which contain or reveal competitive, marketing, pricing or
strategy information and except for information and communications which may be
privileged; provided that this right shall terminate if JDS Uniphase Corporation
shall Transfer more than 50% of the shares it is issued as of the date of this
Agreement to an Person which is not an Affiliate and which continues to be an
affiliate of JDS Uniphase Corporation.

Section 3 Confidentiality.

     3.1. Each Stockholder acknowledges and agrees that any oral, written or
digital information obtained pursuant to this Agreement or the Registration
Rights Agreement between the Company and JDS Uniphase Corporation, after the
date hereof, that contains or otherwise reflects non-public information
concerning the Company, its employees, clients, business markets, products,
know-how, technology, prospects, strategies, finances or other business matters
furnished by the Company (collectively, the "Confidential Information") was
received in confidence.

     3.2. The Stockholder agrees that it will maintain the strict
confidentiality of the Confidential Information provided to it or any of its
officers, directors, employees, attorneys, accountants or financial advisors
(collectively, the "Representatives") and will not disclose, divulge or make use
of the Confidential Information. The Stockholder agrees to inform all recipients
of Confidential Information of the Stockholder's obligations under this Section
4 prior to disclosure to them. In addition, the Stockholder agrees that it will
adopt effective procedures to ensure that the Confidential Information it will
acquire in the future has been or continues to be disclosed only to and
maintained only by the Stockholder's ExecutiveManagement and/or Corporate
Business Development personnel, is not

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disclosed to any other Representative or Affiliate of Stockholder, including the
Active Components Business Unit and the Commercial Laser Division or any
successor units thereto, and will be used solely for the purpose of evaluating
an investment in the Company and in no way detrimental to the Company or its
stockholders. Not less than annually, the Stockholder shall confirm to the
Company in a certificate executed by an executive officer of the Stockholder
that they have complied with this covenant and maintained such procedures, which
shall be briefly described in such certificate.

     3.3. If the Stockholder or any of its Representatives becomes required by
law or applicable legal process (by deposition, interrogatory, request for
documents, subpoena, civil investigative demand or similar process) to disclose
any Confidential Information furnished by the Company, it will provide the
Company with prompt prior written notice of such requirement and the terms of
and circumstances surrounding such requirement so that the Company may seek an
appropriate protective order or other remedy, or waive compliance with the terms
of the Subscription Agreement, and such party will provide such cooperation with
respect to obtaining a protective order or other remedy as the Company may
reasonably request. If such protective order or other remedy is not obtained, or
if the Company is required to waive compliance with the provisions hereof, the
Stockholder and its Representatives will furnish only that portion of the
Confidential Information which, as it is advised by its counsel, is legally
required to furnish and will exercise all reasonable efforts to obtain an order
or other reasonable assurance that confidential treatment, if available, will be
accorded such Confidential Information.

Section 4 Miscellaneous.

     4.1. Termination. Section 1 (other than Sections 1.1 (the first paragraph
only), 1.2, 1.3, 1.4 and 1.6, which provisions shall survive if the Restricted
Period has not otherwise ended) and 2, 3 and 4 hereof, shall terminate and be of
no further force or effect from and after the conversion of all of the Series D
Preferred Stock.

     4.2. Injunctive Relief. It is acknowledged that it will be impossible to
measure the damages that would be suffered by the parties if a party fails to
comply with the provisions of this Agreement and that in the event of any such
failure, the non-breaching parties will not have an adequate remedy at law. The
parties shall, therefore, be entitled to obtain specific performance of such
breaching party's obligations hereunder and to obtain immediate injunctive
relief. The breaching party shall not argue, as a defense to any proceeding for
such specific performance or injunctive relief, that the non-breaching parties
have an adequate remedy at law.

     4.3. Assignment.

          (a) The Company and the Stockholder shall cause any person or entity
who acquires Series D Preferred Stock from the Stockholder to become a
Stockholder hereunder.

          (b) Execution of a counterpart of this Agreement by any person or
entity who acquires Series D Preferred Stock and an amendment adding the name of
such person or entity shall be a condition of any acquisition of such shares by
such person or entity.

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     4.4. Successors and Assigns. This Agreement shall bind and inure to the
benefit of the Company and the Stockholder and, subject to Section 5.3, their
respective successors and assigns.

     4.5. Entire Agreement. This Agreement contains the entire agreement among
the parties with respect to the subject matter hereof and supersedes all prior
arrangements or understandings with respect hereto.

     4.6. Notices. All notices, requests, consents and other communications
hereunder to any party shall be deemed to be sufficient if contained in a
written instrument and shall be deemed to have been duly given when delivered in
person, by telecopier, by a nationally-recognized overnight courier, or by first
class registered or certified mail, postage prepaid, addressed to such party at
the address previously provided or such other address as may hereafter be
designated in writing by the addressee as follows: (a) if to the Stockholder, at
the address and telecopier numbers previously provided and (b) if to the
Company, to the attention of General Counsel at the address previously provided.
All such notices, requests, consents and other communications shall be deemed to
have been delivered (a) in the case of personal delivery or delivery by
telecopy, on the date of such delivery, (b) in the case of nationally-recognized
overnight courier, on the next business day and (c) in the case of mailing, on
the third business day following such mailing if sent by certified mail, return
receipt requested.

     4.7. Modifications; Amendments; Waivers. Any party may waive any provision
hereof intended for its benefit in writing. No failure or delay on the part of
any party hereto in exercising any right, power or remedy hereunder shall
operate as a waiver thereof. This Agreement may be amended with the prior
written consent of the Company and a Majority Interest. Any consent given as
provided in the preceding sentence shall be binding on all Stockholders and
Permitted Transferees, and no Stockholder or Permitted Transferee shall have any
cause of action against any other person for any action taken by such erson in
reliance upon such consent.

     4.8. Counterparts. This Agreement may be executed in any number of
counterparts, and each such counterpart hereof shall be deemed to be an original
instrument, but all such counterparts together shall constitute but one
agreement.

     4.9. Headings. The headings of the various sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be a
part of this Agreement.

     4.10. Severability. It is the desire and intent of the parties that the
provisions of this Agreement be enforced to the fullest extent permissible under
the law and public policies applied in each jurisdiction in which enforcement is
sought. Accordingly, if any provision of this Agreement would be held in any
jurisdiction to be invalid, prohibited or unenforceable for any reason, such
provision, as to such jurisdiction, shall be ineffective, without invalidating
the remaining provisions of this Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction. Notwithstanding the
foregoing, if such provision could be more narrowly drawn so as not to be
invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such
jurisdiction, be so narrowly drawn, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

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     4.11. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without giving effect to
principles governing conflicts of laws.

                      [The next page is the signature page]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first set forth above.

THE COMPANY:                            IPG PHOTONICS CORPORATION

                                        By: /s/ Valentin P. Gapontsev
                                            ------------------------------------
                                        Name: Valentin P. Gapontsev
                                        Title: Chairman & CEO

STOCKHOLDER:                            JDS UNIPHASE CORPORATION

                                        By: /s/ Christopher Dewees
                                            ------------------------------------
                                        Name: Christopher Dewees
                                        Title: Senior VPEXHIBIT 10.22

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT
                    -----------------------------------------

                  THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT dated as of
October 13, 2006 ("Commencement Date") between SAUL POMERANTZ, residing at
_______________________ ("Executive"), and MOVIE STAR, INC., a New York
corporation having its principal office at 1115 Broadway, New York, New York
10010 ("Company").

                  WHEREAS, the Company and Executive entered into an agreement
dated as of December 10, 2004 governing the terms and conditions of Executive's
employment by the Company for a term ending on November 30, 2006 ("Prior
Agreement"); and

                  WHEREAS, the Company and Executive have agreed to extend the
term of the Prior Agreement and to add other terms governing the terms and
conditions of Executive's employment by the Company.

                  IT IS AGREED:

1.       Employment, Duties and Acceptance.
         ----------------------------------

         1.1. Prior Agreements. The Prior Agreement is hereby terminated and is
hereby superseded in its entirety by the terms, conditions and agreements set
forth in this Agreement.

         1.2. General. During the Term (as defined herein), the Company shall
employ Executive as its Executive Vice President and Chief Operating Officer
("COO"). All of Executive's powers and authority in any capacity shall at all
times be subject to the direction and control of the Company's Board of
Directors and its Chief Executive Officer. Executive shall report directly to
the Chief Executive Officer of the Company. The Board or the Chief Executive
Officer may assign to Executive such general management and supervisory
responsibilities and executive duties for the Company or any subsidiary of the
Company, including serving as a director, as are consistent with Executive's
status as Executive Vice President and COO. The Company and Executive
acknowledge that Executive's primary functions and duties as Executive Vice
President and COO shall be to manage and supervise the day-to-day administration
of the Company's business. Notwithstanding the foregoing, Executive's title and
duties may be modified if the Company acquires another entity, another entity
acquires the Company or the Company merges with and into another entity in a
transaction which results in at least 35% of the issued and outstanding shares
of capital stock of the combined entity being owned by the shareholders of the
other entity ("Significant Acquisition"), provided that at no time during the
Term shall Executive's title and duties be inconsistent in any way with those
associated with the Executive Vice President and COO of the subsidiary or
division of the Company that continues to be engaged in designing, manufacturing
(through independent contractors), importing and wholesaling women's intimate
apparel (i.e., Executive Vice President and COO of the Movie Star division).

         1.3. Full-Time Position. Executive accepts such employment and agrees
to devote substantially all of his business time, energies and attention to the
performance of his duties hereunder. Nothing herein shall be construed as
preventing Executive from making and supervising personal investments, provided
they will not interfere with the performance of Executive's duties hereunder or
violate the provisions of Section 6.4 hereof.

         1.4. Location. Executive shall be located in the New York City
metropolitan area. Executive shall undertake such travel, within or outside the
United States, as is reasonably necessary in the interests of the Company.

2.       Term. The Term will commence on the Commencement Date and shall
continue until June 30, 2009, unless terminated earlier as hereinafter provided
in this Agreement, or unless extended by mutual written agreement of the Company
and Executive. 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 Sections 4.4 and 4.6(d) shall no longer be in
effect.

3.       Compensation and Benefits.
         --------------------------

         3.1. Salary. The Company shall pay to Executive a salary ("Base
Salary") at the annual rate of $250,000 from the Commencement Date until
November 30, 2006 and at the annual rate of $280,000 from December 1, 2006 until
June 30, 2009. Executive's compensation shall be paid in equal, periodic
installments in accordance with the Company's normal payroll procedures.

         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 ("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, in the event of a Significant Acquisition, the Bonus Calculation
shall be (i) 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 and (ii) calculated in a manner so as not to be
diminished by the expenses that the Company records for accounting purposes as
transaction expenses associated with a Significant Acquisition in accordance
with Generally Accepted Accounting Principles. 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.

                                       2

3.3.     Options.
         --------

         (a) As additional compensation for Executive entering into this
Agreement and agreeing to be bound by its terms and for the services to be
rendered by Executive hereunder, the Company hereby grants to Executive a
ten-year option ("Option") to purchase 50,000 shares of Common Stock under the
Company's Amended and Restated 1988 Stock Option Plan ("Plan").

         (b) The Option shall be evidenced by a Stock Option Agreement, dated
the date of this Agreement, in the form attached hereto as EXHIBIT A. The Option
shall not be an incentive option and shall have an exercise price equal to the
greater of (x) the Fair Market Value (as defined in the Plan) of a share of
Common Stock on the date of grant of the Option and (y) $1.00. Except as
otherwise provided in the Stock Option Agreement, the Option will vest in five
equal annual installments commencing on the first anniversary of the date of
grant of such Option and shall expire on the day immediately preceding the tenth
anniversary of the date of grant of such Option.

         3.4. Benefits. The Company will, at its own cost and expense, maintain
(i) a life insurance policy on the life of the Executive which will provide a
death benefit to the Executive's beneficiary in the amount of $1,200,000 and
which will be owned by Executive; (ii) a disability insurance policy which will
provide a non-taxable benefit of at least $4,500 per month payable to Executive
until Executive attains the age of 64 and which will be owned by Executive;
provided, however, that Executive hereby acknowledges that the cost of premiums
for such disability insurance policy will be considered taxable income for
Executive in the year paid by the Company and will be reported by the Company to
the Internal Revenue Service as taxable income and (iii) such group medical
insurance covering Executive and Executive's dependent family members and such
other benefits as are generally afforded to other senior executives of the
Company, subject to applicable waiting periods and other conditions. Provided
that (a) Executive is still employed by the Company on the date he attains age
62 and Executive thereafter retires from such employment and (b) the Company's
Retired Senior Executive Medical Plan is in effect at the time of Executive's
retirement, Executive shall be entitled to participate in the Company's Retired
Senior Executive Medical Plan in accordance with all of the terms and conditions
thereof and contained in the letter from David M. Hogan to Thomas Rende dated
August 2, 1999 (copies of which are annexed hereto as EXHIBIT B), except that no
further approval of the Compensation Committee of the Board of Directors shall
be necessary for such participation. The provisions contained in the foregoing
sentence shall survive termination of this Agreement.

         3.5. Vacation. Executive shall be entitled to four weeks of paid
vacation during each calendar year and to a reasonable number of other days off
for religious and personal reasons.

         3.6. Automobile. The Company shall provide Executive with a suitable
automobile for business use and shall pay for all other costs associated with
the use of the vehicle, including insurance costs, repairs and maintenance. The
Company shall not be required to expend more than $800 per month during the Term
for the costs of leasing or purchasing such automobile (or, since Executive
resides in the State of New York where leasing is not available, the comparable
quasi-lease arrangement (e.g., "smart-buy")). The costs associated with
Executive's automobile

                                       3

shall be considered taxable income to Executive, except to the extent that it is
documented to have been used by him for business purposes.

         3.7. Expenses. The Company will pay or reimburse Executive for all
transportation, hotel and other expenses reasonably incurred by Executive on
business trips and for all other ordinary and reasonable out-of-pocket expenses
actually incurred by him in the conduct of the business of the Company against
itemized vouchers submitted with respect to any such expenses and approved in
accordance with customary procedures.

4.       Termination.
         ------------

         4.1. Death. If Executive dies during the term of this Agreement,
Executive's employment hereunder shall terminate and the Company shall pay to
Executive's estate the amount set forth in Section 4.6(a).

         4.2. Disability. The Company, by written notice to Executive, may
terminate Executive's employment hereunder if Executive shall fail because of
illness or incapacity to render services of the character contemplated by this
Agreement for one hundred and eighty (180) consecutive calendar days in any
consecutive twelve calendar month period. Upon such termination, the Company
shall pay to Executive the amount set forth in Section 4.6(b).

         4.3. By Company for "Cause". The Company, by written notice to
Executive, may terminate Executive's employment hereunder for "Cause." As used
herein, "Cause" shall mean: (a) the refusal, or failure resulting from the lack
of good faith efforts, by Executive to carry out specific directions of the
Board or the Chief Executive Officer which are of a material nature and
consistent with his then current status with the Company (i.e., as Executive
Vice President and COO if no Significant Acquisition has occurred during the
Term or if a Significant Acquisition has occurred, his then modified status with
the Company), or the refusal, or failure resulting from the lack of good faith
efforts, by Executive to perform a material part of Executive's duties
hereunder; (b) the commission by Executive of a material breach of any of the
provisions of this Agreement; (c) fraud or dishonest action by Executive in his
relations with the Company or any of its subsidiaries or affiliates, or with any
customer or business contact of the Company or any of its subsidiaries or
affiliates ("dishonest" for these purposes shall mean Executive knowingly making
a material misstatement or omission, or knowingly committing a material improper
act, for his personal benefit); or (d) the conviction of Executive of any crime
involving an act of moral turpitude. Notwithstanding the foregoing, no "Cause"
for termination shall be deemed to exist with respect to Executive's acts
described in clauses (a) or (b) above, unless the Company shall have given
written notice to Executive specifying the "Cause" with reasonable particularity
and, within thirty (30) calendar days after such notice, Executive shall not
have cured or eliminated the problem or thing giving rise to such "Cause;"
provided, however, that a repeated breach after notice and cure of any provision
of clauses (a) or (b) above involving the same or substantially similar actions
or conduct, shall be grounds for termination for "Cause" without any additional
notice from the Company. Upon such termination, the Company shall pay to
executive the amount set forth in Section 4.6(c).

         4.4. By Employee for "Good Reason". The Executive, by written notice to
the Company, may terminate Executive's employment hereunder if a "Good Reason"
exists. For

                                       4

purposes of this Agreement, "Good Reason" shall mean the occurrence of any of
the following circumstances without the Executive's prior express written
consent: (a) a substantial and material breach of this Agreement by the Company;
(b) a failure by the Company to make any payment to Executive when due, unless
the payment is not material and is being contested by the Company, in good
faith; or (c) a material and adverse change in Executive's compensation and
benefits described in Section 3 of this Agreement with which Executive
disagrees. Notwithstanding the foregoing, "Good Reason" shall not be deemed to
exist with respect to the Company's acts described in clauses (a), (b) or (c)
above, unless the Executive shall have given written notice to the Company
specifying the Good Reason with reasonable particularity and, within thirty (30)
calendar days after such notice, the Company shall not have cured or eliminated
the problem or thing giving rise to such Good Reason; provided, however, that a
repeated breach after notice and cure of any provision of clauses (a), (b) or
(c) above involving the same or substantially similar actions or conduct, shall
be grounds for termination for Good Reason without any additional notice from
the Executive. Upon such termination, the Company shall pay to Executive the
amount set forth in Section 4.6(d).

         4.5. By Company Without "Cause". The Company may terminate Executive's
employment hereunder without "Cause". Upon such termination, the Company shall
pay to Executive the amount set forth in Section 4.6(d).

         4.6. Compensation Upon Termination.
              ------------------------------

              (a) Payment Upon Death. In the event that Executive's employment
is terminated pursuant to Section 4.1, the Company shall no longer be under any
obligation to Executive or his legal representatives pursuant to this Agreement
except for (i) the Base Salary due Executive pursuant to Section 3.1 hereof
through the date of termination, (ii) any Bonus which would have become payable
under Section 3.2 for the year in which the employment was terminated prorated
by multiplying the full amount of the Bonus by a fraction, the numerator of
which is the number of "full calendar months" worked by Executive during the
year of termination and the denominator of which is 12 (a "full calendar month"
is a month in which the Executive worked at least two weeks), which Bonus will
be calculated and paid after the Company's fiscal year end and in accordance
with the Company's customary procedures, (iii) all earned and previously
approved but unpaid Bonuses for any year prior to the year of termination, (iv)
all valid expense reimbursements and (v) all accrued but unused vacation pay.

              (b) Payment Upon Disability. In the event that Executive's
employment is terminated pursuant to Section 4.2, the Company shall no longer be
under any obligation to Executive or his legal representatives pursuant to this
Agreement except for (i) the Base Salary due Executive pursuant to Section 3.1
hereof through the date of termination, (ii) any Bonus which would have become
payable under Section 3.2 for the year in which the employment was terminated
prorated by multiplying the full amount of the Bonus by a fraction, the
numerator of which is the number of "full calendar months" worked by Executive
during the year of termination and the denominator of which is 12 (a "full
calendar month" is a month in which the Executive worked at least two weeks),
which Bonus will be calculated and paid after the Company's fiscal year end and
in accordance with the Company's customary procedures, (iii) all earned and
previously approved but unpaid Bonuses for any year prior to the year of
termination,

                                       5

(iv) all valid expense reimbursements; (v) all accrued but unused vacation pay;
and (vi) medical coverage at the Company's expense through the date of
termination.

              (c) Payment Upon Termination by the Company For "Cause". If the
Company terminates Executive's employment hereunder pursuant to Section 4.3, the
Company shall have no further obligations to the Executive hereunder, except the
Company shall pay to Executive his Base Salary, all valid expense reimbursements
and all unused vacation pay required by law through the date of termination.

              (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 provided for 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
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; (vii) the benefits set forth in Sections 3.4 and 3.6
through the end of the Term; 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.

         4.7. Resignation as Director Upon Termination of Employment or Upon a
Significant Acquisition. If Executive's employment hereunder is terminated for
any reason, or if a Significant Acquisition is completed while Executive is
employed by the Company, then Executive shall, at the Company's request, resign
as a director of the Company and all of its subsidiaries, effective upon the
occurrence of such termination or upon the completion of a Significant
Acquisition, as the case may be.

5.       Executive Indemnity. The Company agrees to indemnify Executive and hold
Executive harmless against all costs, expenses (including, without limitation,
reasonable attorneys' fees) and liabilities (other than settlements to which the
Company does not consent, which consent shall not be unreasonably withheld)
(collectively, "Losses") reasonably incurred by Executive in connection with any
claim, action, proceeding or investigation brought against or involving
Executive with respect to, arising out of or in any way relating to Executive's
employment with the Company or Executive's service as a director of the Company;
provided, however, that the Company shall not be required to indemnify Executive
for Losses incurred as a result of Executive's intentional misconduct or gross
negligence (other than matters where Executive acted in good faith and in a
manner he reasonably believed to be in and not opposed to the Company's best
interests). Executive shall promptly notify the Company of any claim, action,

                                       6

proceeding or investigation under this paragraph and the Company shall be
entitled to participate in the defense of any such claim, action, proceeding or
investigation and, if it so chooses, to assume the defense with counsel selected
by the Company; provided that Executive shall have the right to employ counsel
to represent him (at the Company's expense) if Company counsel would have a
"conflict of interest" in representing both the Company and Executive. The
Company shall not settle or compromise any claim, action, proceeding or
investigation without Executive's consent, which consent shall not be
unreasonably withheld; provided, however, that such consent shall not be
required if the settlement entails only the payment of money and the Company
fully indemnifies Executive in connection therewith. The Company further agrees
to advance any and all expenses (including, without limitation, the fees and
expenses of counsel) reasonably incurred by the Executive in connection with any
such claim, action, proceeding or investigation, provided Executive first enters
into an appropriate agreement for repayment of such advances if indemnification
is found not to have been available.

6.       Protection of Confidential Information; Non-Solicitation.
         ---------------------------------------------------------

         6.1. Acknowledgement. Executive acknowledges that:

              (a) As a result of his employment with the Company, Executive has
obtained and will obtain secret and confidential information concerning the
business of the Company and its subsidiaries and affiliates (referred to
collectively in this Section 6 as the "Company"), including, without limitation,
financial information, designs and other proprietary rights, trade secrets and
"know-how," customers and sources ("Confidential Information").

              (b) The Company will suffer substantial damage which will be
difficult to compute if, during the period of his employment with the Company or
thereafter, Executive should divulge Confidential Information.

              (c) The provisions of this Agreement are reasonable and necessary
for the protection of the business of the Company.

         6.2. Confidentiality. Executive agrees that he will not at any time,
either during the Term or thereafter, divulge to any person or entity any
Confidential Information obtained or learned by him as a result of his
employment with, or prior retention by, the Company, except: (i) in the course
of performing his duties hereunder; (ii) with the Company's express written
consent; (iii) to the extent that any such information is in the public domain
other than as a result of Executive's breach of any of his obligations
hereunder; or (iv) where required to be disclosed by court order, subpoena or
other government process. If Executive shall be required to make disclosure
pursuant to the provisions of clause (iv) of the preceding sentence, Executive
promptly, but in no event more than two (2) business days after learning of such
subpoena, court order, or other government process, shall notify, by personal
delivery or by electronic means, confirmed by mail, the Company and, at the
Company's expense, Executive shall: (a) take all reasonably necessary and lawful
steps required by the Company to defend against the enforcement of such
subpoena, court order or other government process and (b) permit the Company to
intervene and participate with counsel of its choice in any proceeding relating
to the enforcement thereof.

                                       7

         6.3. Documents. Upon termination of his employment with the Company,
Executive will promptly deliver to the Company all memoranda, notes, records,
reports, manuals, drawings, blueprints and other documents (and all copies
thereof) relating to the business of the Company and all property associated
therewith, which he may then possess or have under his control; provided,
however, that Executive shall be entitled to retain copies of such documents
reasonably necessary to document his financial relationship (both past and
future) with the Company.

         6.4. Non-Solicitation. During the period commencing on the date hereof
and ending on the date which is one year after the date upon which Executive's
employment hereunder is terminated, Executive, without the prior written
permission of the Company, shall not, anywhere in the world, (i) employ or
retain, or have or cause any other person or entity to employ or retain, any
person who was employed or retained by the Company at any time within 180 days
prior to the termination of Executive's employment; or (ii) solicit, interfere
with, or endeavor to entice away from the Company, for the benefit of any
person, firm or corporation engaged in any business which is directly or
indirectly in competition with the Company, any of its customers or other
persons with whom the Company has a contractual relationship.

         6.5. Injunctive Relief. If Executive commits a breach, or threatens to
commit a breach, of any of the provisions of Sections 6.2, 6.3 or 6.4, the
Company shall have the right and remedy to seek to have the provisions of this
Agreement specifically enforced by any court having equity jurisdiction, it
being acknowledged and agreed by Executive that the services being rendered
hereunder to the Company are of a special, unique and extraordinary character
and that any such breach or threatened breach will cause irreparable injury to
the Company and that money damages will not provide an adequate remedy to the
Company. The rights and remedies enumerated in this Section 6.5 shall be in
addition to, and not in lieu of, any other rights and remedies available to the
Company under law or equity. In connection with any legal action or proceeding
arising out of or relating to this Agreement, the prevailing party in such
action or proceeding shall be entitled to be reimbursed by the other party for
the reasonable attorneys' fees and costs incurred by the prevailing party.

         6.6. Modification. If any provision of this Section 6 is held to be
unenforceable because of the scope, duration or area of its applicability, the
tribunal making such determination shall have the power to modify such scope,
duration, or area, or all of them, and such provision or provisions shall then
be applicable in such modified form.

         6.7. Survival. The provisions of this Section 6, and the provisions of
Section 4.6(d) 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.

7.       Miscellaneous Provisions.
         -------------------------

         7.1. Notices. All notices provided for in this Agreement shall be in
writing, and shall be deemed to have been duly given when (i) delivered
personally to the party to receive the same, or (ii) when mailed first class
postage prepaid, by certified mail, return receipt requested,

                                        8

addressed to the party to receive the same at his or its address set forth
below, or such other address as the party to receive the same shall have
specified by written notice given in the manner provided for in this Section
7.1. All notices shall be deemed to have been given as of the date of personal
delivery or mailing thereof.

                                    If to Executive:

                                    Mr. Saul Pomerantz

                                    If to the Company:

                                    Movie Star, Inc.
                                    1115 Broadway
                                    New York, New York 10010
                                    Attn:  Melvyn Knigin

                                    With a copy in either case to:

                                    Graubard Miller
                                    The Chrysler Building
                                    405 Lexington Avenue
                                    New York, New York 10174
                                    Attn: Peter M. Ziemba, Esq.
                                    Fax No.: (212) 818-8881

              7.2. Entire Agreement; Waiver. This Agreement and the Stock Option
Agreement executed simultaneously herewith set forth the entire agreement of the
parties relating to the employment of Executive and are intended to supersede
all prior negotiations, understandings and agreements. No provisions of this
Agreement or the Stock Option Agreement may be waived or changed except by a
writing by the party against whom such waiver or change is sought to be
enforced. The failure of any party to require performance of any provision
hereof or thereof shall in no manner affect the right at a later time to enforce
such provision.

              7.3. Governing Law. All questions with respect to the construction
of this Agreement, and the rights and obligations of the parties hereunder,
shall be determined in accordance with the law of the State of New York
applicable to agreements made and to be performed entirely in New York.

              7.4. Binding Effect; Nonassignability. This Agreement shall inure
to the benefit of and be binding upon the successors and assigns of the Company.
This Agreement shall not be assignable by Executive, but shall inure to the
benefit of and be binding upon Executive's heirs and legal representatives.

              7.5. Severability. Should any provision of this Agreement become
legally unenforceable, no other provision of this Agreement shall be affected,
and this Agreement shall continue as if the Agreement had been executed absent
the unenforceable provision.

                                       9

              7.6. Section 409A. This Agreement is intended to comply with the
provisions of Section 409A of the Internal Revenue Code ("Section 409A"). To the
extent that any payments and/or benefits provided hereunder are not considered
compliant with Section 409A, the parties agree that the Company shall take all
actions necessary to make such payments and/or benefits become compliant.

              7.7. Change in Fiscal Year. As of the date of this Agreement, the
fiscal year end of the Company for financial reporting purposes is June 30. If
the Company's fiscal year end changes, as a result of a Significant Acquisition
or otherwise, then all references in this Agreement to the Company's fiscal
years ending on June 30 in 2007 or subsequent years (including, but not limited
to, Section 3.2) shall be deemed to refer to the Company's actual fiscal years
ending in 2007 or subsequent years.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                       10

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

                          /s/ Saul Pomerantz
                          ----------------------------
                          SAUL POMERANTZ

                          MOVIE STAR, INC.

                          /s/ Thomas Rende
                          ----------------------------
                          By: Thomas Rende
                              Chief Financial Officer

                                       11

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