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Exhibit 10.25    
    

[Execution
Copy] 

PFI HOLDINGS CORP.
 EXECUTIVE STOCK AGREEMENT  

        THIS AGREEMENT is made as of November 3, 2003, by and between PFI Holdings Corp., a Delaware corporation (the
"Company"), and Jeff Rogers ("Executive"). 

        WHEREAS,
the Company and Executive desire to enter into an agreement pursuant to which Executive shall purchase, and the Company shall sell, 19,000 shares of the Company's Common Stock,
par value $.01 per share (the "Common Stock"), and 73.860 shares of the Company's Series A Preferred Stock, par value $.01 per share (the
"Preferred Stock" and, together with the Common Stock, the "Executive Stock"). Certain definitions are
set forth in paragraph 7 of this Agreement. 

        NOW,
THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 

        1.    Purchase and Sale of Executive Stock.    

        (a)   Upon
the execution and delivery of this Agreement, Executive shall purchase, and the Company shall sell, 19,000 shares of Common Stock at a price of $0.10 per share and
70.819 shares of Preferred Stock at a price of $1,000.00 per share. The Company shall deliver to Executive the certificates representing such shares of Executive Stock, and Executive shall deliver to
the Company a wire transfer of funds in the aggregate amount of $70,819.00. 

        (b)   In
connection with the purchase and sale of the Executive Stock hereunder, Executive represents and warrants to the Company that: 

          (i)  The
Executive Stock to be acquired by Executive pursuant to this Agreement shall be acquired for Executive's own account and not with a view to, or intention of,
distribution thereof in violation of the 1933 Act, or any applicable state securities laws, and the Executive Stock shall not be disposed of in contravention of the 1933 Act or any applicable state
securities laws. 

         (ii)  Executive
is an executive officer of the Company, is sophisticated in financial matters and is able to evaluate the risks and benefits of the investment in the
Executive Stock. 

        (iii)  Executive
is able to bear the economic risk of his or her investment in the Executive Stock for an indefinite period of time because the Executive Stock has not been
registered under the 1933 Act and, therefore, cannot be sold unless subsequently registered under the 1933 Act or an exemption from such registration is available. 

        (iv)  Executive
has had an opportunity to ask questions and receive answers concerning the terms and conditions of the offering of Executive Stock and has had full access to
such other information concerning the Company as he or she has requested. Executive has reviewed, or has had an opportunity to review, the following documents (and Executive is familiar with the
transactions contemplated thereby): (A) a copy of the Stock Purchase Agreement, dated as of the date hereof, by and among the Company, Pierre Fabre, Inc., a New York corporation (to be
known as Physicians Formula, Inc.) ("PFI") and Pierre Fabre Dermo-Cosmetique, S.A. pursuant to which the Company acquired all of the outstanding
capital stock of PFI, (B) the Company's certificate of incorporation and bylaws, (C) the loan agreements, notes and related documents with the Company's and/or its Subsidiaries' senior
and subordinated lenders, and (D) the Information Memorandum, dated March 2003, prepared by PFI. 

         (v)  This
Agreement constitutes the legal, valid and binding obligation of Executive, enforceable in accordance with its terms, and the execution, delivery and performance of
this Agreement by Executive do not and shall not conflict with, violate or cause a breach of any 

 

agreement,
contract or instrument to which Executive is a party or any judgment, order or decree to which Executive is subject. 

        (vi)  Executive
is a resident of the State of California and is an "accredited investor" as defined in Rule 501(a) under the 1933 Act. 

        (c)   As
an inducement to the Company to issue the Executive Stock and as a condition thereto, Executive acknowledges and agrees that this Agreement does not constitute an
agreement of employment and that neither the issuance of the Executive Stock to Executive nor any provision contained herein shall entitle Executive to remain in the employment of the Company and its
Subsidiaries or affect the right of the Company to terminate Executive's employment at any time. 

        2.    Repurchase Option.    

        (a)   In
the event that Executive ceases to be employed by the Company and its Subsidiaries for any reason other than termination by the Company without Cause (the
"Termination"), the Executive Stock (whether held by Executive or one or more of Executive's transferees) shall be subject to repurchase by the Company
and the Investors pursuant to the terms and conditions set forth in this paragraph 2 (the "Repurchase Option"). 

        (b)   The
purchase price for each share of Executive Stock shall be the Fair Market Value thereof as of the date of Termination. 

        (c)   The
Company (or its designee(s)) may elect to purchase all or any portion of the Executive Stock by delivering written notice (the "Repurchase
Notice") to the holder or holders of the Executive Stock within 90 days after the Termination. The Repurchase Notice shall set forth the number and type of shares of
Executive Stock to be acquired from each holder of Executive Stock, the aggregate consideration to be paid for such shares and the time and place for the closing of the transaction. The number of
shares to be repurchased by the Company shall first be satisfied to the extent possible from the shares of Executive Stock held by Executive at the time of delivery of the Repurchase Notice. If the
number of shares of Executive Stock then held by Executive is less than the total number of shares of Executive Stock the Company has elected to purchase, the Company shall purchase the remaining
shares elected to be purchased from the other holder(s) of Executive Stock under this Agreement, pro rata according to the number of shares of Executive Stock held by such other holder(s) at the time
of delivery of such Repurchase Notice (determined as close as practicable to the nearest whole shares). 

        (d)   If
for any reason the Company does not elect to purchase all of the Executive Stock pursuant to the Repurchase Option, the Investors shall be entitled to exercise the
Repurchase Option for the shares of Executive Stock the Company has not elected to purchase (the "Available Shares"). As soon as practicable after the
Company has determined that there will be Available Shares, but in any event within 45 days after the Termination, the Company shall give written notice (the "Option
Notice") to the Investors setting forth the number and type of Available Shares and the purchase price for the Available Shares. The Investors may elect to purchase any or all
of the Available Shares by giving written notice to the Company within 30 days after the Option Notice has been given by the Company. If more than one Investor elects to purchase the Executive
Stock, the shares of Executive Stock shall be allocated among the Investors pro rata according to the number of shares of Common Stock owned by each Investor on a fully-diluted basis. As soon as
practicable, and in any event within ten days after the expiration of the 30-day period set forth above, the Company shall notify each holder of Executive Stock as to the number and type
of shares being purchased from such holder by the Investors (the "Supplemental Repurchase Notice"). 

        (e)   The
closing of the purchase of the Executive Stock pursuant to the Repurchase Option shall take place on the date designated by the Company in the Repurchase Notice or
Supplemental Repurchase Notice, as the case may be, which date shall not be more than 60 days nor less than five days after the delivery of the later of either such notice to be delivered. The
Company and/or the 

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Investors
shall pay for the Executive Stock to be purchased pursuant to the Repurchase Option by delivery of a check or wire transfer of funds. The purchasers of Executive Stock hereunder shall be
entitled to receive customary representations and warranties from the sellers regarding such sale of shares (including representations and warranties regarding good title to such shares, free and
clear of any liens or encumbrances). 

        (f)    Notwithstanding
anything to the contrary contained in this Agreement, all repurchases of Executive Stock by the Company shall be subject to applicable restrictions
contained in the Delaware General Corporation Law and in the Company's and its Subsidiaries debt and equity financing agreements. If any such restrictions prohibit the repurchase of Executive Stock
hereunder which the Company is otherwise entitled to make, the time periods provided in this paragraph 2 shall be suspended, and the Company may make such repurchases as soon as it is permitted
to do so under such restrictions. 

        (g)   The
right of the Company and the Investors to repurchase Executive Stock hereunder shall terminate upon the first to occur of (i) a Sale of the Company or
(ii) an IPO. 

        3.    Restrictions on Transfer.    

        (a)    Transfer of Executive Stock.    Executive shall not sell, transfer, assign, pledge or otherwise dispose of
(whether directly or indirectly, whether with or without consideration and whether voluntarily or
involuntarily or by operation of law) any interest (legal or beneficial) in any shares of Executive Stock (a "Transfer"), except pursuant to a Public
Sale or the provisions of paragraph 2 or 5 hereof and except pursuant to the provisions of this paragraph 3(b). 

        (b)    Certain Permitted Transfers.    The restrictions contained in this paragraph 3 shall not apply with
respect to transfers of shares of Executive Stock (i) pursuant to applicable laws of descent and distribution or (ii) among Executive's family group; provided
that the restrictions contained in this paragraph shall continue to be applicable to the Executive Stock after any such transfer and the transferees of such Executive Stock
have agreed in writing to be bound by the provisions of this Agreement. Executive's "family group" means Executive's spouse and descendants (whether
natural or adopted). 

        (c)    Termination of Restrictions.    The restrictions on the transfer of shares of Executive Stock set forth in this
paragraph 3 shall terminate on the first to occur of (i) a Sale of the Company or (ii) an IPO. 

        4.    Additional Restrictions on Transfer.    

        (a)    Legend.    The certificates representing the Executive Stock shall bear the following legend: 

"THE
SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED ON NOVEMBER 3, 2003, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"), AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION
THEREUNDER. THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN REPURCHASE OPTIONS AND CERTAIN OTHER AGREEMENTS SET FORTH IN AN EXECUTIVE
STOCK AGREEMENT BETWEEN THE ISSUER (THE "COMPANY") AND JEFF ROGERS DATED AS OF NOVEMBER 3, 2003, AS AMENDED AND MODIFIED FROM TIME TO TIME. A COPY OF SUCH AGREEMENT MAY BE OBTAINED BY THE
HOLDER HEREOF AT THE COMPANY'S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE." 

3

 

        (b)    Opinion of Counsel.    No holder of Executive Stock may sell, transfer or dispose of any Executive Stock
(except pursuant to an effective registration statement under the 1933 Act) without first delivering to the Company an opinion of counsel (reasonably acceptable in form and substance to the Company)
that neither registration nor qualification under the 1933 Act and applicable state securities laws is required in connection with such transfer. 

        (c)    Holdback.    Each holder of Executive Stock agrees not to effect any public sale or distribution of any
Executive Stock or other equity securities of the Company, or any securities convertible into or exchangeable or exercisable for any of the Company's equity securities, during the seven days prior to
and the 180 days after the effectiveness of any underwritten public offering, except as part of such underwritten public offering or if otherwise permitted by the Company. 

        5.    Sale of the Company.    

        (a)   If
the Board and the Investors that hold a majority of the shares of Common Stock held by all of the Investors (the "Majority
Stockholders") approve a Sale of the Company (the "Approved Sale"), the holders of Executive Stock shall consent to, vote in
favor of, and raise no objections against the Approved Sale. If the Approved Sale is structured as a sale of stock, reverse merger or other transaction having the effect of a stock sale, each such
holder of Executive Stock shall agree to sell such holder's shares of Executive Stock on the terms and conditions approved by the Majority Stockholders. The holders of Executive Stock shall take all
necessary and desirable actions in connection with the consummation of the Approved Sale as reasonably requested by the Majority Stockholders. 

        (b)   Upon
the consummation of the Approved Sale, each holder of Executive Stock shall receive in exchange for the shares of Executive Stock held by such holder the same
portion of the aggregate consideration from such Approved Sale that such holder would have received if such aggregate consideration had been distributed by the Company in complete liquidation pursuant
to the rights and preferences set forth in the Company's certificate of incorporation as in effect immediately prior to the consummation of such Approved Sale. 

        (c)   Each
holder of Executive Stock shall be obligated to join on a pro rata basis (based upon the amount of consideration received by such holder for his or her Executive
Stock in such Approved Sale) in any purchase price adjustments, indemnification or other obligations that the sellers are required to provide in connection with the Approved Sale (other than any such
obligations that relate solely to a particular stockholder, such as indemnification with respect to representations and warranties given by a stockholder regarding such stockholder's title to and
ownership of the Company's stock, in respect of which only such stockholder shall be liable). 

        (d)   Holders
of Executive Stock shall bear their pro rata share (based upon the amount of consideration received by such holder for his or her shares of Executive Stock in
such Approved Sale) of the costs of any Approved Sale to the extent such costs are incurred for the benefit of all holders of the Company's stock participating in such Approved Sale and are not
otherwise paid by the Company or the acquiring party. Costs incurred by holders of the Company's stock on their own behalf shall not be considered costs of the transaction hereunder; and with it being
understood that the fees and disbursements of one counsel chosen by the Majority Stockholders shall be deemed for the benefit of all holders of the Company's stock participating in such Approved Sale. 

        (e)   The
provisions of this paragraph 5 shall terminate upon the earlier to occur of (i) the consummation of an IPO and (ii) the consummation of a Sale
of the Company. 

        6.    Initial Public Offering.    In the event that the Board and the Majority Stockholders approve an IPO, then each
holder of Executive Stock shall vote for, consent to, and raise no objections against such proposed IPO, and shall take all such other necessary or desirable actions requested by the Majority
Stockholders in connection with the consummation of such IPO, including compliance with 

4

 

the
requirements of all laws and regulatory bodies which are applicable or which have jurisdiction over such IPO and waiving any dissenters' rights, appraisal rights, approval rights or similar rights
in connection with such IPO, and executing all agreements, documents and instruments in connection therewith in the form presented and executed by the Majority Stockholders. Without limiting the
foregoing, in the event that such IPO is an underwritten offering and the managing underwriters advise the Company in writing that in their opinion the Company's capital structure would adversely
affect the marketability of the offering, each holder of Executive Stock shall consent to and vote for a recapitalization, merger, reorganization or exchange (each, a
"Recapitalization") of any class of Executive Stock into securities that the managing underwriters and the Majority Stockholders find acceptable and
shall take all necessary and desirable actions in connection with the consummation of such Recapitalization, including executing all agreements, documents and instruments in connection therewith in
the form presented and executed by the Majority Stockholders. 

        7.    Definitions.    

        "1933 Act" means the Securities Act of 1933, as amended from time to time. 

        "Board" means the Company's Board of Directors. 

        "Cause" shall have the meaning set forth in that certain Employment Agreement, dated as of the date hereof, by and between Executive and
PFI (as the same may be amended or modified from time to time in accordance with its terms). 

        "Executive Stock" shall continue to be Executive Stock in the hands of any holder other than Executive (except for the Company and the
Investors and except for transferees in a Public Sale), and except as otherwise provided herein, each such other holder of Executive Stock shall succeed to all rights and obligations attributable to
Executive as a holder of Executive Stock hereunder. Executive Stock shall also include shares of the Company's capital stock issued with respect to Executive Stock by way of a stock split, stock
dividend or other recapitalization. 

        "Fair Market Value" of each share of Executive Stock means the fair value thereof as determined in good faith by the Board. 

        "Investors" means each of the Summit Investors and each of the PFDC Stockholders so long as such Person continues to own any of the
Company's Common Stock. 

        "IPO" means the sale in an underwritten public offering registered under the 1933 Act of shares of the Company's Common Stock. 

        "Person" means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 

        "PFDC Stockholders" shall mean the PFDC Stockholders (as defined in the Stockholders Agreement) and each of their respective Permitted
PFDC Transferees (as defined in the Stockholders Agreement). 

        "Public Sale" means any sale pursuant to a registered public offering under the 1933 Act or any sale to the public pursuant to
Rule 144 promulgated under the 1933 Act effected through a broker, dealer or market maker. 

        "Sale of the Company" means the sale of the Company pursuant to which any party or parties (other than Summit Partners, L.P. and/or any of
its affiliated investment funds) acquire (i) capital stock of the Company possessing the voting power under normal circumstances to elect a majority of the Company's board of directors (whether
by merger, consolidation or sale or transfer of the Company's capital stock) or (ii) all or substantially all of the Company's assets determined on a consolidated basis. 

5

 

        "Subsidiary" means any corporation of which the Company owns securities having a majority of the ordinary voting power in electing the
board of directors directly or through one or more subsidiaries. 

        "Stockholders Agreement" means that certain Stockholders Agreement among the Company and certain of its stockholders dated as of the date
hereof. 

        "Summit Investors" means Summit Ventures V, L.P., Summit Ventures V Companion Fund, L.P., Summit V Advisors (QP) Fund, L.P., Summit V
Advisors Fund, L.P., Summit Ventures VI-A, L.P., Summit Ventures VI-B, L.P., Summit VI Advisors Fund, L.P., Summit VI Entrepreneurs Fund, L.P., Summit Subordinated Debt Fund
II, L.P. and Summit Investors VI, L.P., and their respective successors and assigns. 

        8.    Notices.    All notices, demands and other communications to be given or delivered under or by reason of the
provisions of this Agreement shall be in writing and shall be deemed to have been given (i) when personally delivered, sent by telecopy (with hard copy to follow) upon receipt of mechanical
confirmation of delivery, (ii) for deliveries within the continental United States, one day following the day when deposited with a reputable and established overnight express courier (charges
prepaid), (iii) for overseas deliveries, five days following the day when deposited with a reputable and established overnight express courier (charges prepaid), or (iv) for deliveries
within the continental United States, five days following mailing by certified or registered mail, postage prepaid and return receipt requested. Unless another address is specified in writing,
notices, demands and communications to the Company, the Executive, the Summit Investors and the PFDC Stockholders shall be sent to the addresses indicated below: 

To the Company:

PFI
Holdings Corp.

1055 West 8th Street

Azusa, California 91702

Attn: Chairman of the Board

Chief Executive Officer

Telecopy: (626) 812-9462 

with copies to:

Summit
Partners, L.P.

499 Hamilton Avenue

Suite 499

Palo Alto, California 94301

Attn: Walter G. Kortschak

         Craig D. Frances

Telecopy: (650) 321-1188 

Kirkland &
Ellis LLP

200 East Randolph

Chicago, IL 60601

Attn: Ted H. Zook, P.C.

Telecopy: (312) 861-2200 

To Executive:

Jeff
Rogers

3323 White Eagle Drive

Naperville, Illinois 60564 

6

 

To the Summit Investors:

c/o
Summit Partners, L.P.

499 Hamilton Avenue

Suite 200

Palo Alto, California 94301

Attn: Walter G. Kortschak

         Craig D. Frances

Telecopy: (650) 321-1188 

with copies to:

Kirkland &
Ellis LLP

200 East Randolph

Chicago, IL 60601

Attn: Ted H. Zook, P.C.

Telecopy: (312) 861-2200 

To the PFDC Stockholders:

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

1, Avenue d'Albi

la Michonne

81 106 Castres Cedex

France

Attn: Bertrand Parmentier, CFO

Telephone:+33 (5) 63 71 47 31

Telecopy: +33 (5) 63 71 47 16 

with copies to (which shall not constitute notice to the PFDC Stockholder): 

Barack
Ferrazzano Kirschbaum Perlman & Nagelberg LLC

333 West Wacker Drive

Chicago, Illinois 60606

Attention: Peter J. Barack, Esq.

Telephone: (312) 948-3101

Telecopy: (312) 984-3150 

or
such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party. Any notice under this Agreement shall be deemed
to have been given when so delivered or, if mailed, ten days after deposit in the U.S. mail. 

        9.    General Provisions.    

        (a)    Transfers in Violation of Agreement.    Any Transfer or attempted Transfer of any Executive Stock in violation
of any provision of this Agreement shall be void, and the Company shall not record such Transfer on its books or treat any purported transferee of such Executive Stock as the owner of such stock for
any purpose. 

        (b)    Severability.    Whenever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if
such invalid, illegal or unenforceable provision had never been contained herein. 

7

 

        (c)    Complete Agreement.    This Agreement, those documents expressly referred to herein and other documents of even
date herewith embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or
oral, which may have related to the subject matter hereof in any way. 

        (d)    Counterparts.    This Agreement may be executed in separate counterparts (including by means of telecopied
signature pages), each of which is deemed to be an original and all of which taken together constitute one and the same agreement. 

        (e)    Successors and Assigns.    Except as otherwise provided herein, this Agreement shall bind and inure to the
benefit of and be enforceable by Executive, the Company, the Investors and their respective successors and assigns (including subsequent holders of Executive Stock); provided
that the rights and obligations of Executive under this Agreement shall not be assignable without the prior written consent of the Company. 

        (f)    Choice of Law.    The corporate law of the State of Delaware shall govern all questions concerning the relative
rights of the Company and its stockholders. All other questions concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits hereto shall be governed by,
and construed in accordance with, the internal law, and not the law of conflicts, of the State of California, without giving effect to any choice of law or conflict of law rules or provisions (whether
of the State of California or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of California. 

        (g)    Remedies.    Each of the parties to this Agreement (including the Investors) shall be entitled to enforce its
rights under this Agreement specifically, to recover damages and costs (including reasonable attorney's fees) caused by any breach of any provision of this Agreement and to exercise all other rights
existing in its favor. The parties hereto agree and acknowledge that money damages would not be an adequate remedy for any breach of the provisions of this Agreement and that any party shall be
entitled to specific performance and/or other injunctive relief from any court of law or equity of competent jurisdiction (without posting any bond or deposit) in order to enforce or prevent any
violations of the provisions of this Agreement. 

        (h)    Amendment and Waiver.    The provisions of this Agreement may be amended and waived only with the prior written
consent of the Company and Executive. 

        (i)    Third-Party Beneficiaries.    Certain provisions of this Agreement are entered into for the benefit of and
shall be enforceable by the Investors as provided herein to the same extent as if the Investors were parties hereto. 

        (j)    Business Days.    If any time period for giving notice or taking action hereunder expires on a day which is a
Saturday, Sunday or legal holiday in the state in which the Company's chief executive office is located, the time period shall be automatically extended to the business day immediately following such
Saturday, Sunday or holiday. 

        (k)    Deemed Purchase of Executive Stock.    If the Company or any other Person has elected to acquire shares of
Executive Stock as provided in this Agreement, and the Company and/or such Person (as applicable) shall make available, at the time and place and in the amount and form provided in this Agreement, the
consideration for the Executive Stock to be purchased in accordance with the provisions of this Agreement, then from and after such time, the Person from whom such securities are to be purchased shall
no longer have any rights as a holder of such securities (other than the right to receive payment of such consideration in accordance with this Agreement), and such securities shall be deemed
purchased in accordance with the applicable provisions hereof and the Company (and/or any other Person acquiring securities) shall be deemed the owner and holder of such securities, whether or not the
certificates therefor have been delivered as required by this Agreement. 

*    *    *    *

8

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above. 

	 	 	PFI HOLDINGS CORP.
	

 	
 	

 	

 
	 	 	By	/s/  ANDRE PIETERS      

	 	 	Its President
	

 	
 	

 	

 
	 	 	 	/s/  JEFF ROGERS      
 Jeff Rogers

CONSENT  

        The undersigned spouse of Executive hereby acknowledges that I have read the foregoing Executive Stock Agreement and that I understand its contents. I am aware
that the Agreement provides for the repurchase of my spouse's shares of Executive Stock under certain circumstances and imposes other restrictions on the transfer of such Executive Stock. I agree that
my spouse's interest in the Executive Stock is subject to this Agreement and any interest I may have in such Executive Stock shall be irrevocably bound by this Agreement and further that the my
community property interest, if any, shall be similarly bound by this Agreement. 

        I
am aware that the legal, financial and other matters contained in this Agreement are complex and I am free to seek advice with respect thereto from independent counsel. I have either
sought such advice or determined after carefully reviewing this Agreement that I will waive such right. 

	 	/s/  KATHY ROGERS      
 Name: Kathy Rogers
	

 	

/s/  JEFF ROGERS      
 Witness

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Exhibit 10.25QuickLinks
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Exhibit 10.26    
    

November 3,
2003 

FROM:

Pierre Fabre Dermo-Cosmetique, S.A.

45, Place Abel Gance

Boulogne (92100), France 

PFDC
Holdings, Inc.

98, Campus Drive

Suite 7

Parsippany, New Jersey 

TO:

Pierre Fabre, Inc. (to be known as PHYSICIANS FORMULA, INC.)

1055 West 8th Street

Azusa, California 

Re:
PFDC Letter Agreement

        Pierre
Fabre Dermo-Cosmetique S.A. ("PFDC") acknowledges and agrees that Pierre Fabre, Inc. (to be known as Physicians
Formula, Inc.), a New York corporation, or its subsidiaries (collectively, "PFI") owns the entire worldwide right, title and interest in and to
all proprietary processes, formulas, compositions, molds, shapes, inventions, trade secrets, copyrights, patents and all other intellectual property embodied in any product that was developed by PFI
or any Retained Subsidiary, in whole or in part, for its or their respective own prior, existing or contemplated future products (as identified in laboratory notebooks following a "New Product
Development Request" from PFI's Marketing Department made on or prior to November 3, 2003) (the "PF Intellectual Property"), 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 trade secret
or confidential information rights in any formula, process or components thereof that are
well-known in the cosmetics industry. PFI acknowledges and agrees that PFDC owns the entire worldwide right, title and interest in and to (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 PFI prior to the date of
this letter and used by PFI solely for the manufacture of PFDC products, any of PFDC's processes, formulas, compositions, molds, shapes, trade secrets, copyrights and all other intellectual property
embodied in the KLORANE branded products as of the date of this letter (collectively, the "PFDC Intellectual Property"). 

        This
letter will serve to confirm that PFDC and PFI disagree on whether any PF Intellectual Property is embodied in or otherwise used in any products currently manufactured by PFDC or by
a third party on behalf of PFDC, and marketed, sold and distributed by PFDC under the trade name "Galenic" (the "Galenic
Products"). 

        To
the extent any such PF Intellectual Property is currently (as of the date hereof) embodied in or otherwise used in the Galenic Products or the manufacture thereof, PFI hereby grants a
limited and restricted license (subject to the terms and conditions stated therein) to a manufacturer designated by PFDC in writing to PFI (the "Galenic
Manufacturer"), which license is attached hereto (the "Galenic License");  provided, however, that the Galenic License shall automatically terminate on January 11, 2004,
without notice, in the event that PFDC does not (i) obtain Supervisory Board approval of the PFDC gurantee as stated herein, and (ii) deliver to PFI a legal opinion issued by PFDC's
outside legal counsel (the parties acknowledge that the opinion of Rambaud-Martel delivered in connection with the Closing would, if it did not exclude the guarantee herein, be acceptable) confirming
the validity and enforceability of PFDC's guarantee referenced in the paragraph below by no later than January 10, 2004. PFDC shall not designate any such manufacturer that markets or sells
(directly or through any affiliate thereof) its own retail cosmetic products in the United States. PFDC shall have the right to 

 

designate
replacement manufacturers that shall meet the foregoing criteria; provided, however, that at
any point in time, there shall be only one (1) Galenic Manufacturer entitled to the rights under the Galenic License. PFDC further acknowledges and agrees that it will receive substantial
direct and indirect benefits from PFI's agreement to grant the Galenic License in the event that any of the PF Intellectual Property Rights are embodied in or otherwise used in the Galenic Products or
the manufacture thereof. Such Galenic Manufacturer shall not be required to execute a copy of the Galenic License, but for purposes of this letter, and as between PFI and PFDC, for all purposes the
Galenic License shall be treated as valid and enforceable against the Galenic Manufacturer in accordance with the express terms thereof. 

        Accordingly,
subject to PFDC's Supervisory Board approval, PFDC hereby absolutely and unconditionally guarantees and shall ensure that each Galenic Manufacturer strictly performs and
complies with all of the restrictions, duties and obligations under and pursuant to the Galenic License,
and PFDC shall be liable to PFI for all breaches or violations of the Galenic License by any Galenic Manufacturer under the Galenic License; provided,  however, that, until such time as the foregoing guarantee by PFDC has been approved by PFDC's Supervisory Board, PFDC Holdings, Inc., a Delaware
corporation, hereby absolutely and unconditionally guarantees and shall ensure that each Galenic Manufacturer strictly performs and complies with all of the restrictions, duties and obligations under
and pursuant to the Galenic License, and PFDC Holdings, Inc. shall be liable to PFI for all breaches or violations of the Galenic License by any Galenic Manufacturer under the Galenic License.
The foregoing guarantees and covenants shall apply regardless of whether or not the Galenic License is enforceable against the Galenic Manufacturer, regardless of whether or not the Galenic
Manufacturer accepts and agrees to such Galenic License, and regardless of any affirmative defenses that such Galenic Manufacturer may have. 

        It
is further acknowledged and agreed between PFDC and PFI that PFDC, by executing this letter agreement, does not acknowledge or admit that any of the PF Intellectual Property is
currently (as of the date hereof) embodied in or otherwise used in the Galenic Products or the manufacture thereof. 

        All
questions concerning the construction, validity, enforcement and interpretation of this letter 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. 

        Solely
for purposes of any action or proceeding arising out of or relating to this letter, each of the parties submits to the jurisdiction of the United States District Court for the
Central District of California (or if not permitted, the Superior Court for the County of Los Angeles) in any action or proceeding arising out of or relating to this letter, and agrees that all claims
in respect of the action or proceeding may be heard and determined in any such court. Each party hereto hereby irrevocably submits to the jurisdiction of such courts, irrevocably consents to the
service of process by registered mail or personal service and hereby irrevocably waives, to the fullest extent permitted by law, any objection which it may have or hereafter have as to personal
jurisdiction, the laying of the venue of any such action or proceeding brought in any such court and any claim that any such action or proceeding brought in any court has been brought in an
inconvenient forum and waives any bond, surety or other security that might be required of any other party with respect thereto. Each party also agrees not to bring any action or proceeding arising
out of or relating to this Agreement in any other state or federal court unless and until the foregoing court renders a final order that it lacks, and cannot acquire, the necessary jurisdiction, and
either all appeals have been exhausted or the order is no longer appealable. Each party agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by
suit on the judgment or in any other manner provided by law or at equity. 

*    *    *

2

 

	

 	
 	

Signed and agreed to:

PIERRE FABRE DERMO-COSMETIQUE, S.A.
	

 	
 	

By:	
 	

/s/  PIERRE-ANDRE POIRIER      

	 	 	 	 	Its: Secretary
	

 	
 	

PIERRE FABRE, INC.
	

 	
 	

By:	
 	

/s/  ANDRE PIETERS      

	 	 	 	 	Its: President
	

 	
 	

PFDC HOLDINGS, INC.
	

 	
 	

By:	
 	

/s/  PIERRE-ANDRE POIRIER      

	 	 	 	 	Its: President

3

QuickLinks

Exhibit 10.26

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