<PAGE>

                                                                   EXHIBIT 10.27

                             STOCK OPTION AGREEMENT

      This Option Agreement (the "Agreement"), is made as of the ___ day of 
___ between Menley & James, Inc., a Delaware corporation (the "Company"), and 
the person signing this Agreement adjacent to the caption "Participant" on the
signature page hereof, which person (the "Participant") is a director of the 
Company. Capitalized terms used and not otherwise defined herein shall have the 
meanings attributed thereto in the Menley & James, Inc. 1991 Stock Option Plan 
(the "Plan").

      WHEREAS, pursuant to the Plan, the Company desires to afford the
Participant the opportunity to purchase shares of the Company's $0.01 par value
Common Stock (the "Stock");

      NOW, THEREFORE, in connection with the mutual covenants hereinafter set
forth and for other good and valuable consideration, the parties hereto agree as
follows:

      1. Grant of Options. The Company hereby grants to the Participant the
right and option (the "Option") to purchase an aggregate of ____ shares of 
Stock, such shares being subject to adjustment as provided in ARTICLE X of the
Plan, on the terms and conditions herein set forth.

      2. Purchase Price. The purchase price of each share of Stock covered by
the Option shall be equal to ___ per share.

      3. Term of Option. The term of the Option shall be for a period of ___ 
years from the date hereof.

      4. Vesting of Option. The Option, subject to the terms, conditions and
limitations contained herein, shall vest and become exercisable during the 
___ month period commencing on the date hereof, in four equal installments of
___ shares of Stock on each of ___


      5. Termination of Directorship. (a) In the event the Participant ceases to
be a director of the Company for reasons other than his death or disability, the
Option shall remain exercisable for a period of up to three months after such
cessation, to the extent it was exercisable at the time of such cessation. In
the event the Participant ceases to be a director of the Company by reason of
his death or disability, the Option shall remain exercisable for a period of up
to twelve months after such cessation, to the extent it was exercisable at the
time of such cessation. The Option shall be forfeited as to that number of
shares for which it is not yet exercisable on the date of any cessation of the
Participant's directorship.

      6. Transferability of Option. The Participant may not voluntarily or
involuntarily sell, pledge, mortgage, hypothecate, give, transfer, create a
security interest in, or a lien or trust (voting or otherwise) with respect to,
or assign or otherwise encumber or dispose of the Option, except by will or the
laws of descent and distribution.
<PAGE>

      7. No Rights as a Shareholder. The Participant shall have no rights as a
shareholder with respect to any shares of Stock covered by the Option until the
date of issuance of a stock certificate for such Stock. No adjustments, other
than as provided in ARTICLE X of the Plan, shall be made for dividends (ordinary
or extraordinary, whether in cash, securities or other property) or
distributions for which the record date is prior to the date such stock
certificate is issued.

      8. Registration: Governmental Approval. The Option is subject to the
requirement that, if at any time the Board determines, in its discretion, that
the listing, registration, or qualification of shares of Stock issuable upon
exercise of the Option is required by any securities exchange or under any state
or federal law, or the consent or approval of any governmental regulatory body
is necessary or desirable as a condition of, or in connection with, the grant of
the Option or the issuance of shares of Stock, no shares of Stock shall be
issued, in whole or in part, unless such listing, registration, qualification,
consent or approval has been effected or obtained free of any conditions or with
such conditions as are acceptable to the Board.

      9. Method of Exercising Option. Subject to the terms and conditions of
this Agreement, the Option may be exercised by written notice to the Company at
its offices located in Horsham, Pennsylvania. Such notice shall state the
election to exercise the Option and the number of shares of Stock in respect of
which it is being exercised, and shall be signed by the person or persons so
exercising the Option. Such notice shall either:

      (a) be accompanied by payment of the full purchase price of such shares of
Stock, in which event the Company shall deliver a certificate or certificates
representing such shares of Stock as soon as practicable after the notice shall
be received; or

      (b) fix a date, not less than five (5) nor more than ten (10) business
days from the date such notice shall be received by the Company, for the payment
of the full purchase price of such shares of Stock against delivery of a
certificate or certificates representing such shares of stock.

      Payment of such purchase price shall be made in United States dollars by
certified check or bank cashier's check payable to the order of the Company. The
certificate or certificates for the shares of Stock as to which the Option shall
have been so exercised shall be registered in the name of the person or persons
so exercising the Option; or if the Option shall be exercised by the
Participant, and if the Participant shall so request in the notice exercising
the Option, such shares shall be registered in the name of the Participant and
another person, as joint tenants with rights of survivorship, and shall be
delivered, as provided above or upon the written order of the person or persons
exercising the Option. All shares of Stock that shall be purchased upon the
exercise of the Option as provided herein shall be fully paid and
non-assessable.

      10. Non-Qualified Option. The option granted hereunder is not intended to
be an "incentive stock option" within the meaning of Section 422 of the Internal
Revenue Code.


                                       2
<PAGE>

      11. Binding Effect. This Agreement shall be binding upon the heirs,
executors, administrators and successors of the parties hereto.

      12. Governing Law. This Agreement shall be construed and interpreted in
accordance with the laws of the State of Delaware.

      13. Headings. Headings are for the convenience of the parties and are not
deemed to be part of this Agreement.

      14. Plan. The terms and provisions of the Plan are incorporated herein by
reference. In the event of a conflict or inconsistency between discretionary
terms and provisions of the Plan and the express provisions of this Agreement,
this Agreement shall govern and control. In all other instances of conflicts or
inconsistencies or omissions, the terms and provisions of the Plan shall govern
and control.

      EXECUTED the day and year first written above.

COMPANY:                  MENLEY & JAMES, INC.


                          By: 
                              __________________________
                              Name:
                              Officer:

PARTICIPANT:             By:  
                              ___________________________
                              Name:


                                       3