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Exhibit 10.27    
    

 
 

CONTINGENT TRADE SECRET LICENSE AGREEMENT

        Subject
to the following terms and conditions of this Contingent Trade Secret License Agreement (this "Agreement"), Pierre
Fabre, Inc. (to be known as Physicians Formula, Inc.), a New York corporation (collectively with its subsidiaries, "Licensor"), will
provide Licensee (as defined in Section 1 below) with the rights to use PF Intellectual Property (as defined in Section 1 below). Licensor and Licensee are sometimes referred to in this
Agreement collectively as the "Parties" and individually as a "Party." 

        1.    Definitions:    The following terms shall have the meanings set forth herein below: 

        (a)   Affiliate. The term "Affiliate" means any person or entity that
(i) controls any Party to this Agreement or (ii) is controlled by any such Party. For purposes of this definition, "control" means the
possession of, directly or indirectly, the power to direct or cause the direction of the management, policies or operations of an entity, whether through ownership of voting securities, by contract or
otherwise. 

        (b)   Derivatives. The term "Derivatives" means findings, improvements,
discoveries, inventions, additions, modifications, formulations, derivative works, changes, advances, enhancements, refinements or modifications made or developed using the PF Intellectual Property or
the Licensor Confidential Information, whether by Licensor or by Licensee or jointly by Licensor and Licensee, or on behalf of Licensee without regard to whether or not patentable and whether or not
reduced to practice. 

        (c)   Licensee. The term "Licensee" means the Person designated in writing by
PFDC to PF, pursuant to Section 17.1 of the Manufacturing Agreement, to manufacture the Products on behalf of and for sale by PFDC or its Affiliates. 

        (d)   Licensor Confidential Information. The term "Licensor Confidential
Information" means non-public information, whether or not maintained as a trade secret, including the PF Intellectual Property, and any other proprietary technical,
research, development, engineering, business, financial, product, marketing, customer, supplier or other proprietary information or data relating in a proprietary manner to Licensor, except that such
information shall cease to be Licensor Confidential Information only to the extent that any information: (i) is, or becomes, publicly known through no wrongful act of PFDC, Licensee or its
officers, employees or third party consultants; (ii) is received by Licensee without restriction from a third party (other than PFDC or its Affiliates) without breach of any obligation of
nondisclosure; (iii) is required to be publicly disclosed pursuant to a governmental or judicial requirement or other requirement of law, but only after notifying Licensor of such requirement
and, if requested by Licensor, using reasonable efforts to minimize such disclosure and to obtain confidential treatment for all or relevant portions of the Licensor Confidential Information to be
disclosed; and (iv) that Licensee can show was already in its possession at the time of disclosure hereunder and was not previously obtained directly or indirectly from PFDC or its Affiliates
nor from Licensor. 

        (e)   Manufacturing Agreement. The term "Manufacturing Agreement" means that
certain Manufacturing Agreement and License between PFDC and PF dated November 3, 2003. 

        (f)    Person. The term "Person" means any natural person, corporation, company,
partnership, limited partnership, limited liability company, firm, association, trust, government, governmental agency, or any other entity, whether acting in an individual, fiduciary or other
capacity. 

        (g)   PFDC. The term "PFDC" means Pierre Fabre Dermo-Cosmetique, S.A. a limited
company organized under the laws of France with its head office at 45, Place Abel Gance, Boulogne (92100), France. 

        (h)   PF Intellectual Property. The term "PF Intellectual Property" means all
proprietary processes, formulas, compositions, molds, shapes, inventions, trade secrets, and copyrights, in each case of a 

 

proprietary
nature, embodied in whole or in part, in Licensor's own (or any of its Retained Subsidiaries) prior, existing or contemplated future products (as identified in laboratory notebooks
following a "New Product Development Request" from Licensor's Marketing Department prior to November 3, 2003), and all documentation, in written or electronic format, related thereto; provided,
however, that PF Intellectual Property shall not include the PFDC Intellectual Property (defined below), nor any claimed trade secret or confidential information rights in any formula, process or
components thereof that are well-known in the cosmetics industry, nor any patents or patent rights. 

        (i)    PFDC Intellectual Property. The term "PFDC Intellectual Property" means
(i) any of PFDC's proprietary marketing techniques, trademarks and associated goodwill, trade dress, copyrights, or trade names associated with the Avene Couvrance products, and (ii) to
the extent provided to Licensor prior to the date of this Agreement and used by Licensor solely for the manufacture of PFDC products, any of PFDC's processes, formulas, compositions, molds, shapes,
trade secrets, copyrights, patents and all other intellectual property embodied in the KLORANE branded products as of the date of this letter. 

        (j)    Products. The term "Products" means all Galenic-branded products in the
formulations, molds and shapes and according to the specifications existing as of and which have been developed or manufactured for PFDC prior to November 3, 2003. 

        (k)   Retained Subsidiary. The term "Retained Subsidiary" shall have the
meaning set forth in the Manufacturing Agreement. 

        2.    Ownership.    Except as otherwise set forth herein, the Parties understand and agree that, as between Licensor
and Licensee, Licensor owns all right, title and interest in and to the PF Intellectual Property and all Derivatives thereto made using such PF Intellectual Property, and except as otherwise set forth
herein, this Agreement confers to Licensee no rights in such PF Intellectual Property or Derivatives. 

        3.    License Grant and Restriction on Use.    

        (a)   To
the extent necessary or required by Licensee, subject to Section 11 below, Licensor hereby grants to Licensee a
limited and terminable non-exclusive, non-transferable and non-sublicenseable, royalty-free license to use the PF Intellectual Property for the sole
purpose of manufacturing the Products for the purchase and sale of such Products by PFDC and its Affiliates pursuant to the terms and conditions of this Agreement. 

        (b)   Licensee
hereby covenants and agrees not to use the PF Intellectual Property for any purpose other than to manufacture the Products for purchase by PFDC or its
Affiliates, and agrees not to use the PF Intellectual Property otherwise for its own benefit, or for the benefit of third parties (other than to manufacture the Products for purchase by PFDC and its
Affiliates). 

        (c)   Licensee
shall not do or cause to be done any act or thing contesting or, in any way, impairing or tending to impair any part of the PF Intellectual Property for the
duration of this Agreement and after its termination or expiration. To the extent that this provision is unenforceable pursuant to any applicable law or regulation, if Licensee violates its
obligations in this section 3(c), this Agreement shall terminate immediately upon written notice from Licensor. 

        (d)   Licensee
shall not create or develop any Derivatives; provided, that to the extent Licensee does create or develop any
such Derivatives in contravention of this Agreement, Licensee hereby assigns all of its right, title and interest in and to such Derivatives to Licensor. Notwithstanding the generality of the
foregoing, to the extent that this provision is unenforceable pursuant to any applicable law or regulation, if Licensee does create or develop any such Derivatives, Licensee hereby grants to Licensor
a worldwide, perpetual, irrevocable, sublicensable, fully paid, royalty-free non-exclusive license to Licensor to use such Derivatives in an unrestricted manner throughout the
world. 

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        (e)   Except
as otherwise set forth herein, this Agreement does not grant to Licensee any rights in the PF Intellectual Property, including any manufacturing, distribution,
ownership, license or sublicense rights. Except for PFDC's right to market and sell Products manufactured by Licensee, as between Licensor and Licensee, Licensor retains all other rights to the PF
Intellectual Property, including the right of Licensor to use or license the PF Intellectual Property for any reason and in any manner, in any current or future geographic market, and for any and all
products. 

        (f)    Immediately
upon termination or expiration of this Agreement for any reason, Licensee shall (i) cease using the PF Intellectual Property and (ii) at the
option of Licensor, either return or destroy all materials and documentation in any medium that constitute, contain, refer or relate to, whether in written or electronic format, the PF Intellectual
Property then in Licensee's possession and provide Licensor, within ten (20) business days thereafter a written certification, signed by a director of Licensee, that all such materials have
been either returned or destroyed as applicable. 

        4.    Confidentiality.    

        (a)   Prior
to and during the term of this Agreement, Licensee may discover, receive, or otherwise acquire, whether directly or indirectly, Licensor Confidential Information. 

        (b)   Licensee
shall (i) use the Licensor Confidential Information solely for purposes of this Agreement and (ii) shall disclose Licensor Confidential
Information only to its officers and employees whose duties require familiarity with such information in order to carry out the purposes of this Agreement. To the extent it is necessary for Licensee
to disclose such information to any third party consultant, Licensee shall obtain from any such third party consultant a legally enforceable written agreement not to disclose Licensor Confidential
Information, or knowledge or know-how derived therefrom, to any other Person or use such Licensor Confidential Information for any purposes other than those contemplated by this Agreement.
Licensee shall take all commercially reasonable actions to protect the Licensor Confidential Information from disclosure or misappropriation (but in no event shall such Party use less than a
reasonable degree of care) and shall be responsible for compliance with the restrictions in this Agreement by its Affiliates and the officers, employees and third party consultants of itself and its
Affiliates. The confidentiality obligations of Licensee shall continue hereunder indefinitely as to all trade secrets, and for ten (10) years for all other Licensor Confidential Information, or
in any case for the longest period of time permitted under applicable law, and shall survive expiration or termination of this Agreement for any reason. 

        (c)   The
existence of this Agreement, each of its terms and conditions, and all information required to be provided from one party to another under the terms and conditions
of this Agreement shall be deemed Licensor Confidential Information that is subject to the non-disclosure provisions of this  Section 4. 

        (d)   Licensee
shall immediately notify Licensor of any information which comes to its attention which does or might indicate that there has been any loss of confidentiality
of the Licensor Confidential Information. In such event both Parties shall take all steps within their power to limit the spread of such information, including taking whatever legal action is possible
to terminate such spread. 

        5.    Term and Termination.    

        (a)   Term. This Agreement shall terminate no later than October 31, 2006, unless sooner terminated by PFDC (in its sole
discretion, with or without cause) or for breach as provided below. 

        (b)   Termination. 

          (i)  Licensor
may terminate this Agreement immediately upon written notice to Licensee if Licensee intentionally, recklessly or materially breaches any of its obligations
set forth in Sections 3 or 4. 

         (ii)  Without
limiting the generality of Section 5(b)(i), in the event that Section 3(c) is unenforceable pursuant to any applicable law or regulation, Licensor
may terminate this 

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Agreement
immediately upon written notice to Licensee if Licensee does or causes to be done any act or thing contesting or in any way impairing or tending to impair any part of the PF Intellectual
Property. 

        (iii)  This
Agreement shall automatically terminate without notice in the event that PFDC does not deliver to Licensor, by no later than January 10, 2004, a legal
opinion issued by PFDC's outside legal counsel confirming the validity and enforceability of PFDC's guarantee referenced in that certain Letter Agreement among Licensor, PFDC and PFDC
Holdings, Inc. dated November 3, 2003. 

        6.    Disclaimer.    LICENSOR MAKES NO REPRESENTATIONS OR WARRANTIES UNDER THIS AGREEMENT, AND LICENSOR EXPRESSLY
DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE. LICENSOR FURTHER EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY,
NON-INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE. 

        7.    Indemnification by Licensee.    Licensee shall defend, indemnify and hold Licensor, its Affiliates, and its and
their respective officers, directors, members, partners, employees and agents harmless and shall pay all losses, damages (including consequential damages), fees, expenses and costs (including
reasonable attorneys' fees) incurred by them related to or arising out of (i) any act or omission of Licensee in connection with Licensee's manufacturing and sale of the Products; or
(ii) Licensee's breach of its obligations or covenants hereunder. 

        8.    Exclusion of Consequential Damages.    In no event shall Licensor, its Affiliates, or its and their directors,
officers, members, partners, employees or agents, be liable for any special, indirect, exemplary, incidental or consequential damages whatsoever (including any loss of profits or savings incurred by
Licensee or its Affiliates), even if Licensor has been advised, knows or should have known of the possibility of the same. 

        9.    Licensor Acknowledgment.    Licensor acknowledges and agrees that this Agreement does not constitute an
admission of PFDC or Licensee that any of their respective products or services would contain, infringe upon, misappropriate or use any PF Intellectual Property. 

        10.    License Contingent.    Licensor's agreement to grant the licenses set forth herein is expressly contingent upon
and subject to Licensee's agreement to each and every term and condition herein. Licensee's infringement upon, misappropriation or use of any PF Intellectual Property shall constitute an
affirmative agreement to the terms and conditions herein. Without limiting the foregoing or Licensor's other rights and remedies, if Licensee challenges the enforceability or validity of this
Agreement in accordance with its terms as applied to Licensee, then Licensee shall not be entitled to claim any license or other benefit under this Agreement. 

        11.    Miscellaneous.    

        (a)   Relationship of the Parties. This Agreement creates no agency relationship between the Parties, and nothing herein
contained shall be construed to place the parties in the relationship of partners or joint venturers, and neither Party shall have the power to obligate or bind the other party in any manner
whatsoever. 

        (b)   Notices. All notices required or permitted to be given hereunder shall be in writing and may be delivered by hand, by
facsimile, or by internationally recognized private courier. Notices delivered (i) by hand shall be deemed to have been given when received; (ii) by facsimile shall be deemed to have
been given on the date of electronic confirmation of receipt and (iii) by internationally recognized 

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private
courier shall be deemed to have been given three days after deposit with such courier. All notices shall be addressed as follows: 

If to Licensor:

Physicians
Formula, Inc.

1055 West 8th Street

Azusa, California 

with a copy (which shall not constitute notice to Licensor) to:

Summit
Partners, L.P.

499 Hamilton Avenue

Suite 200

Palo Alto, California 94301

Attn: Walter G. Kortschak

         Craig D. Frances

Telephone: (650) 321-1166

Telecopy: (650) 321-1188 

Kirkland &
Ellis LLP

200 East Randolph Drive

Chicago, Illinois 60601

Attn: Ted H. Zook, P.C.

Telephone: (312) 861-2000

Telecopy: (312) 861-2200 

If to Licensee:

Licensee
c/o Pierre Fabre Dermo-Cosmetique S.A.

Legal Department

Les Cauquillous

81 506 LAVAUR Cedex

France

Attn: Pierre-André Poirier

General Counsel—Company Secretary

Telephone: + 33 (5) 63 58 88 38

Telecopy: + 33 (5) 63 58 86 68

with a copy to (which shall not constitute notice to Licensee):

Barack
Ferrazzano Kirschbaum Perlman & Nagelberg LLC

333 West Wacker Drive

Suite 2700

Chicago, Illinois 60606

Peter J. Barack, Esq.

Telephone: (312) 948-3101

Telecopy: (312) 984-3150 

and/or
to such other respective addresses and/or addressees as may be designated by notice given in accordance with the provisions of this  Section 11(b). It is understood and agreed by Licensee that PFDC
shall be Licensee's agent for any notices provided under this Agreement and
notice provided to PFDC shall be deemed to be notice provided to Licensee. 

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        (c)   Entire Agreement. This Agreement sets forth the entire understanding and agreement of the Parties and supersede any and
all oral or written agreements or understandings between the Parties as to the subject matter of this Agreement. 

        (d)   Non-Waiver. The failure in any one or more instances of a Party to insist upon performance of any of the
terms, covenants or conditions of this Agreement, to exercise any right or privilege in this Agreement conferred, or the waiver by said party of any breach of any of the terms, covenants or conditions
of this Agreement, shall not be construed as a subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the same shall continue and remain in full force and effect as if
no such forbearance or waiver had occurred. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving Party. 

        (e)   Survival. Sections 2, 3(b), 3(c), 3(d), 3(e), 4, 6, 7, 8, 9 and 11 shall survive termination or expiration of this
Agreement. 

        (f)    Severability. The invalidity of any provision of this Agreement or portion of a provision shall not affect the validity
of any other provision of this Agreement or the remaining portion of the applicable provision. 

        (g)   Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal law of the State of New York without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other
jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. 

        (h)   Binding Effect; Benefit. This Agreement shall inure to the benefit of and be binding upon the Parties hereto, and their
successors and permitted assigns. Nothing in this Agreement, express or implied, shall confer on any person other than the Parties hereto, and their respective successors and permitted assigns, any
rights, remedies, obligations or liabilities under or by reason of this Agreement, including third party beneficiary rights (except as to PFDC). 

        (i)    Assignability. Licensee shall not assign (whether by operation of law or through a change of control or otherwise) or
sublicense this Agreement or any of its rights and obligations hereunder, either in whole or in part, without the prior written consent of Licensor. Any attempt by Licensee to transfer or assign this
Agreement shall render this Agreement null and void. 

        (j)    Remedy. Licensee acknowledges and agrees that Licensor would suffer irreparable harm from a breach by Licensee of any of
the terms and conditions set forth in this Agreement. In the event of an alleged or threatened breach by Licensee of any provision in this Agreement, Licensor or its successors or assigns shall be
entitled to, and may, in addition to all other rights and remedies existing in its favor, apply to any court of competent jurisdiction for specific performance and/or injunctive relief or such other
relief to enforce or prevent any violations of the provisions hereof without posting of bond or other security or proof of irreparable harm. 

*    *    *    *

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QuickLinks

Exhibit 10.27

CONTINGENT TRADE SECRET LICENSE AGREEMENTQuickLinks
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Exhibit 10.28    
    

 
 

PFI HOLDINGS CORP.
  2005 NONQUALIFIED DEFERRED COMPENSATION PLAN    
    

Section 1

Definitions  

        1.1  "Board of Directors" and "Board" mean the board of directors of the Company.

        1.2    "Cause" means the occurrence of one or more of the following events: 

        (a)    Conviction
of a felony or any crime or offense lesser than a felony involving the property of the Company or a Subsidiary; 

        (b)    Conduct
that has caused demonstrable and serious injury to the Company or a Subsidiary, monetary or otherwise; or 

        (c)    Willful
refusal to perform or substantial disregard of duties properly assigned, as determined by the Company; or 

        (d)    Breach
of duty of loyalty to the Company or a Subsidiary or other act of fraud or dishonesty with respect to the Company or a Subsidiary. 

        1.3    "Change in Control" means: 

        (a)    If
any "person" or "group" as those terms are used in Sections 13(d) and 14(d) of the Exchange Act or any successors thereto, other than an Exempt Person, is or becomes
the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act or any successor thereto), directly or indirectly, of securities of the Company representing more than 50% of the combined
voting power of the Company's then outstanding securities; or 

        (b)    Consummation
of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in all or a portion of the
voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity)
more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or 

        (c)    A
sale or disposition by the Company of all or substantially all the Company's assets, other than a sale to an Exempt Person. 

        1.4    "Code" means the Internal Revenue Code of 1986, as amended. 

        1.5    "Committee" means the Compensation Committee of the Board, which shall consist solely of two or more members of the
Board. 

        1.6    "Company" means PFI Holdings Corp., a Delaware corporation. 

        1.7    "Compensation" means total taxable salary, bonuses and commissions paid to a Participant by the Employer (determined
without regard to any amounts in the Participant's Deferred Compensation Account). 

        1.8    "Deferred Compensation Account" means the book-keeping account maintained under the Plan in the Participant's name to
reflect amounts deferred under the Plan pursuant to Section 3 (as adjusted under Section 4). 

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        1.9    "Deferral Election" means a written notice filed by a Participant with the Employer specifying the Compensation to be
deferred by the Participant. 

        1.10    "Disabled" means, with respect to a Participant, any medically determinable physical or mental impairment (a) that can
be expected to result in death or can be expected to last for a continuous period of not less than 12 months and (b) that causes the Participant (i) to be unable to engage in any substantial gainful
activity or (ii) to be eligible to receive income replacement benefits for a period of not less than 3 months under an accident and health plan of the Company that covers the Participant. Whether a
Participant is Disabled shall be determined by the Committee, and in making such determination, the Committee may rely on the opinion of a physician (or physicians) selected by the Committee for such
purpose. 

        1.11    "Distribution Date" means the date a Participant first becomes entitled to receive payment of the Participant's Deferred
Compensation Account pursuant to Subsection 5.1. 

        1.12    "Effective Date" means January 1, 2005. 

        1.13    "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        1.14    "Employee" means an employee of an Employer who meets the eligibility criteria set forth in Subsection 3.1 of the
Plan and who is a member of a select group of management or highly compensated employees as defined under ERISA or the regulations thereunder. 

        1.15    "Employer" means, individually, the Company and each Subsidiary of the Company that adopts the Plan in accordance with
Subsection 7.1. The Company and any Subsidiaries that adopt the Plan are sometimes collectively referred to herein as the "Employers." 

        1.16    "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time. Any reference to a
section of ERISA includes any comparable section or sections of any future legislation that amends, supplements or supersedes that section. 

        1.17    "Exempt Person" means (i) Summit Master Company, LLC, Summit Partners, LLC, Summit Partners, L.P. or any of their
affiliates, (ii) any person, entity or group under the control of any party included in clause (i), or (iii) any employee benefit plan of the Company or a trustee or other administrator or fiduciary
holding securities under an employee benefit plan of the Company. 

        1.18    "Participant" means an Employee who meets the eligibility criteria set forth in Subsection 3.1 and who has made a
Deferral Election in accordance with the terms of the Plan. 

        1.19    "Plan" means this 2005 Nonqualified Deferred Compensation Plan of the Company. 

        1.20    "Plan Year" means the calendar year. 

        1.21    "Unforeseeable Financial Emergency" means a severe financial hardship of the Participant resulting from: 

        (a)    A
sudden and unexpected illness or accident of the Participant or of a dependent of the Participant; 

        (b)    Loss
of the Participant's principal residence due to casualty; or 

        (c)    Such
other similar extraordinary and unforeseeable circumstances resulting from events beyond the control of the Participant. 

Whether
a Participant has an Unforeseeable Financial Emergency shall be determined in the sole discretion of the Committee. 

        1.22    Other Definitions.    In addition to the terms defined in this Section 1, other terms are defined when
first used in later Sections of this Plan. 

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Section 2

Purpose and Administration  

        2.1    Purpose.    The Company has established the Plan primarily for the purpose of providing deferred compensation
to a select group of management or highly compensated employees of the Employers. The Plan is intended to be a top-hat plan described in Section 201(2) of ERISA. The Company intends that the Plan (and
each Trust under the Plan (as described in Subsection 6.1)) shall be treated as unfunded for tax purposes and for purposes of Title I of ERISA. An Employer's obligations hereunder, if
any, to a Participant (or to a Participant's beneficiary) shall be unsecured and shall be a mere promise by the Employer to make payments hereunder in the future. A Participant (or the Participant's
beneficiary) shall be treated as a general unsecured creditor of the Employer. 

        2.2    Administration.    The Plan shall be administered by the Committee. The Committee shall have the powers,
rights, and duties set forth in the Plan and shall have the power, in the Committee's sole and absolute discretion, to determine all questions arising under the Plan, including the determination of
the rights of all persons with respect to the Plan and to interpret the provisions of the Plan and remedy any ambiguities, inconsistencies, or omissions. Any decisions of the Committee shall be final
and binding on all persons with respect to the Plan and the benefits provided under the Plan. The Committee may delegate the Committee's authority under the Plan to one or more directors, officers, or
key employees of the Company; provided, however, that (a) such delegation must be in writing, and (b) the officers or directors of the Company to whom the Committee is delegating authority must accept
such delegation in writing. If a Participant is serving as a member of the Committee, the Participant may not decide or determine any matter or question concerning such Participant's benefits under
the Plan that the Participant would not have the right to decide or determine if the Participant were not serving as a member of the Committee. 

Section 3

Eligibility, Participation and Deferral Elections  

        3.1    Eligibility.    Participation in the Plan shall be limited to Employees (a) having the title of Chief Executive
Officer, Chief Financial Officer or Senior Vice President and (b) receiving total Compensation of at least $200,000 per Plan Year. Any individuals specified above by an Employer may be changed by
action of the Employer. An Employee shall become a Participant in the Plan upon the execution and filing with the Committee of a written election to defer a portion of the Employee's Compensation. A
Participant shall remain a Participant until the entire balance of the Participant's Deferred Compensation Account has been distributed. 

        3.2    Rules for Deferral Elections.    Any person identified in Subsection 3.1 may make a Deferral Election to defer
receipt of Compensation he or she otherwise would be entitled to receive for a Plan Year in accordance with the rules set forth below: 

        (a)    All
Deferral Elections must be made in writing on the form prescribed by the Committee and will be effective only when filed with the Committee no later than the date
specified by the Committee. Except as set forth in Subsection Error! Reference source not found., in no event may a Deferral Election be made later than
the last day of the Plan Year preceding the Plan Year in which the amount being deferred would otherwise be made available to the Participant, provided that (i) in the case of a Participant's initial
year of employment or association with an Employer, the Participant may make a Deferral Election with respect to compensation for services to be performed subsequent to such Deferral Election,
provided such election is made no later than 30 days after the date the Participant first becomes eligible for the Plan, and (ii) with respect to bonuses payable after December 31, 2005
for services performed during the 2005 Plan Year bonus, a Participant may make a Deferral Election no later than March 15, 2005. 

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        (b)    With
respect to Plan Years following the Participant's initial Plan Year of participation in the Plan, failure to complete a subsequent Deferral Election shall
constitute a waiver of the Participant's right to elect a different amount of Compensation to be deferred for each such Plan Year and shall be considered an affirmation and ratification to continue
the Participant's existing Deferral Election. However, a Participant may, prior to the beginning of any Plan Year, elect to increase or decrease the amount of Compensation to be deferred for the next
following Plan Year by filing another Deferral Election with the Committee in accordance with Paragraph (a) above. 

        (c)    A
Deferral Election in effect for a Plan Year may not be modified during the Plan Year, except that a Participant may terminate the Participant's Deferral Election
during a Plan Year in the event of an Unforeseeable Financial Emergency. 

        3.3    Amounts Deferred.    Commencing on the Effective Date, a Participant may elect to defer up to 100% of the
Participant's Compensation for a Plan Year. The amount of Compensation deferred by a Participant shall be credited to the Participant's Deferred Compensation Account as of the Valuation
Date coincident with or immediately following the date such Compensation would, but for the Participant's Deferral Election, be payable to the Participant. 

Section 4

Deferred Compensation Accounts  

        4.1    Deferred Compensation Accounts.    All amounts deferred pursuant to one or more Deferral Elections under the
Plan shall be credited to a Participant's Deferred Compensation Account and shall be adjusted under Subsection 4.2. 

        4.2    Deferral Account Adjustments and Investment Options.    As of each Valuation Date, the Committee shall adjust
amounts in a Participant's Deferred Compensation Account to reflect earnings (or losses) in the Investment Options (as defined in Subsection 4.4) attributable to the Participant's Deferred
Compensation Account. Earnings (or losses) on amounts in a Participant's Deferred Compensation Account shall accrue commencing on the date the Deferred Compensation Account first has a positive
balance and shall continue to accrue until the entire balance in the Participant's Deferred Compensation Account has been distributed. Earnings (or losses) shall be credited to a Participant's
Deferred Compensation Account based on the realized rate of return (net of any expenses and taxes paid from the Trust, if applicable) on the Investment Options attributable to the Participant's
Deferred Compensation Account. 

        4.3    Vesting.    A Participant shall be fully vested in the amounts in the Participant's Deferred Compensation
Account attributable to the Participant's Deferral Elections. 

        4.4    Investment Options.    The Company shall, from time to time and in its sole discretion, select one or more
investment vehicles ("Investment Options") to be made available as the measuring standards for crediting earnings or losses to each participant's
Deferred Compensation Account. A Participant may select from such Investment Options in a manner established by the Company, the investment vehicle or vehicles to apply to his or her accounts and may
change such selections, all in accordance with such rules as the Company may establish. Notwithstanding the foregoing, the Committee may change the method for crediting earnings or losses to each
participant's accounts as described above by written notice to each Participant (including former Participants who then have a Deferred Compensation Account which would be affected by such change),
which notice shall specify the new method for crediting earnings or losses to be used under this section, the effective date of such change, and the Deferred Compensation Accounts to which such new
method shall apply. 

4

 

Section 5

Payment of Benefits  

        5.1    Time and Method of Payment.    Payment of a Participant's Deferred Compensation Account shall be made in a
single lump sum payment as soon as practicable following the Valuation Date coincident with or next following the earliest to occur of: 

        (a)    the
date or fixed schedule specified in writing by the Participant at the time of Participant's initial Deferral Election under the Plan; 

        (b)    the
Participant ceasing to be employed by Employer (and ceasing to provide substantial services to Employer in any non-employee capacity); 

        (c)    the
Participant becoming Disabled; 

        (d)    Participant's
death; 

        (e)    a
Change in Control of the Company (other than a Change in Control that does not constitute a change (i) in ownership or effective control of the Company or (ii) in the
ownership of a substantial portion of the assets of the Company, in each case as defined in regulations or other guidance issued under Section 409A(a)(2)(A)(vi) of the Code); or 

        (f)    an
Unforeseeable Financial Emergency with respect to the Participant, 

provided
that the amount distributed as a result of an Unforeseeable Emergency shall not exceed that amount necessary to mitigate the severe financial hardship resulting from such Unforeseeable
Emergency, plus the amount required to pay taxes reasonably anticipated as a result of such distribution, after taking into account the extent to which such hardship is or may be relieved by insurance
or otherwise by liquidation of the Participant's assets to the extent such liquidation would not itself cause a severe financial hardship to the Participant. 

        5.2    Beneficiary.    In the event of a participant's death, the Participant's Deferred Compensation shall be paid to
the Participant's beneficiary as determined in accordance with this Subsection 5.2. If a Participant is married on the date of the Participant's death, the Participant's beneficiary shall be the
Participant's spouse, unless the Participant names a beneficiary or beneficiaries (other than the Participant's spouse) to receive the balance of the Participant's Deferred Compensation Account in the
event of the Participant's death prior to the payment of the Participant's entire Deferred Compensation Account. To be effective, any beneficiary designation must be filed in writing with the
Committee in accordance with rules and procedures adopted by the Committee for that purpose. A Participant may revoke an existing beneficiary designation by filing another written beneficiary
designation with the Committee. The latest beneficiary designation received by the Committee shall be controlling. If no beneficiary is named by a Participant, or if the Participant survives all of
the Participant's named beneficiaries and does not designate another beneficiary, the Participant's Deferred Compensation Account shall be paid in the following order of precedence: 

        (a)    The
Participant's spouse; 

        (b)    The
Participant's children (including adopted children) per stirpes; or 

        (c)    The
Participant's estate. 

        5.3    Withholding of Taxes.    In connection with the Plan, the Employers shall withhold any applicable Federal,
state or local income tax and any employment taxes, including Social Security taxes, at such time and in such amounts as is necessary to comply with applicable laws and regulations. 

5

 
Section 6

Miscellaneous  

        6.1    Use of Trusts.    Each Employer under the Plan may establish and maintain one or more trusts (individually, a
"Trust") to hold assets to be used for payment of benefits under the Plan. The assets of the Trust with respect to benefits payable to the Participants
employed by or associated with an Employer shall remain the assets of such Employer subject to the claims of its general creditors. Any
payments by a Trust of benefits provided to a Participant under the Plan shall be considered payment by the applicable Employer and shall discharge such Employer from any further liability under the
Plan for such payments. 

        6.2    Rights.    Establishment of the Plan shall not be construed to give any Employee the right to be retained by
the Employers or to any benefits not specifically provided by the Plan. 

        6.3    Interests Not Transferable.    Except as to withholding of any tax under the laws of the United States or any
state or locality and the provisions of Subsection 5.2, no benefit payable at any time under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, or any other encumbrance of any kind or to any attachment, garnishment, or other legal process of any kind. Any attempt by a person (including a Participant or a Participant's beneficiary) to
anticipate, alienate, sell, transfer, assign, pledge, or otherwise encumber any benefits under the Plan, whether currently or thereafter payable, shall be void. If any person shall attempt to, or
shall alienate, sell, transfer, assign, pledge or otherwise encumber such person's benefits under the Plan, or if by any reason of such person's bankruptcy or other event happening at any time, such
benefits would devolve upon any other person or would not be enjoyed by the person entitled thereto under the Plan, then the Committee, in the Committee's sole discretion, may terminate the interest
in any such benefits of the person otherwise entitled thereto under the Plan and may hold or apply such benefits in such manner as the Committee may deem proper. 

        6.4    Forfeitures and Unclaimed Amounts.    Unclaimed amounts shall consist of the amounts in the Deferred
Compensation Account of a Participant that cannot be distributed because of the Committee's inability, after a reasonable search, to locate a Participant or the Participant's beneficiary, as
applicable, within a period of two years after the Distribution Date upon which the payment of benefits became due. Unclaimed amounts shall be forfeited at the end of such two-year period. These
forfeitures will reduce the obligations of the Employers, if any, under the Plan. After an unclaimed amount has been forfeited, the Participant or beneficiary, as applicable, shall have no further
right to amounts in the Participant's Deferred Compensation Account. 

        6.5    Controlling Law.    The law of the state California shall be controlling in all matters relating to the Plan to
the extent not preempted by Federal law. 

        6.6    Number.    Words in the plural shall include the singular, and the singular shall include the plural. 

        6.7    Action by the Employers.    Except as otherwise specifically provided herein, any action required of or
permitted to be taken by an Employer under the Plan shall be by resolution of its Board of Directors or by resolution of a duly authorized committee of its Board of Directors or by action of a person
or persons authorized by resolution of such Board of Directors or such committee. 

        6.8    Offset for Obligations to Employer.    If, at such time as a Participant or a Participant's beneficiary becomes
entitled to benefit payments hereunder, the Participant has any debt, obligation or other liability representing an amount owing to an Employer or a Subsidiary of the Employer, and if such debt,
obligation, or other liability is due and owing at the time benefit payments are payable hereunder, the Employer may offset the amount owing it or an Subsidiary against the amount of benefits
otherwise distributable hereunder. 

6

 

        6.9    No Fiduciary Relationship.    Nothing contained in this Plan, and no action taken pursuant to its provisions by
either the Employers or the Participants shall create, or be construed to create a fiduciary relationship between the Employer and the Participant, a designated beneficiary, other beneficiaries of the
Participant, or any other person. 

        6.10    Notice.    Any notice required or permitted to be given under the provisions of the Plan shall be in writing,
and shall be signed by the party giving or making the same. If such notice, consent or demand is mailed to a party hereto, it shall be sent by United States certified mail, postage prepaid, addressed
to such party's last known address as shown on the records of the Employers. Notices to the Committee should be sent in care of the Company at the Company's principal place of business. The date of
such mailing shall be deemed the date of notice. Either party may change the address to which notice is to be sent by giving notice of the change of address in the manner set forth above. 

Section 7

Employer Participation  

        7.1    Adoption of Plan.    Any Subsidiary of the Company may, with the approval of the
Company, adopt the Plan by filing with the Company a resolution of its Board of Directors to that effect. 

        7.2    Withdrawal from the Plan by Employer.    Any Employer shall have the right, at any time, upon the approval of,
and under such conditions as may be provided by the Committee, to withdraw from the Plan by delivering to the Committee written notice of its election so to withdraw, provided that (a) no Deferred
Payment Account established and maintained under the Plan by such Employer shall be paid to a Participant except as permitted pursuant to Subsection 5.1 (which provision shall remain effective
notwithstanding any Employer's withdrawal from the Plan) and (b) all Deferred Payment Accounts established and maintained under the Plan by such Employer shall continue to constitute a general
unsecured obligation of the Employer until paid in accordance with Subsection 5.1, and the other Employers shall have no obligation to any Participants and beneficiaries with respect to such
amounts. 

Section 8

Amendment and Termination  

        The Company intends the Plan to be permanent, but reserves the right at any time to modify, amend or terminate the Plan; provided however, that (a) any amendment
or termination of the Plan shall not reduce or eliminate any balance in a Participant's Deferred Compensation Account accrued through the date of such amendment or termination and (b) no Deferred
Payment Account established and maintained under the Plan shall be paid to a Participant except as permitted pursuant to Subsection 5.1 (which provision shall remain effective notwithstanding
any amendment or termination of the Plan). 

*            *            *            *    
        * 

        IN
WITNESS WHEREOF, the Company has caused this Plan to be executed by its duly authorized officers as of the 30th day of December. 

	 	 	PFI Holdings Corp., a Delaware corporation
	

 	
 	

By:	

/s/  JOSEPH J. JAEGER      

	

 	
 	

Its:	

Chief Financial Officer

7

QuickLinks

Exhibit 10.28

PFI HOLDINGS CORP. 2005 NONQUALIFIED DEFERRED COMPENSATION PLAN

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