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Exhibit 10.23    
    

[Execution Copy]  

 
 

PROTECTION OF TRADE SECRETS,
  NONSOLICITATION AND CONFIDENTIALITY AGREEMENT    
    

        THIS AGREEMENT is made as of March 8, 2004, by and between Physicians Formula, Inc., a New York corporation and formerly known as Pierre
Fabre, Inc. (the "Company"), and Joseph J. Jaeger ("Executive"). 

        WHEREAS,
the Company and Executive are parties to that certain Employment Agreement, dated as of the date hereof (the "Employment
Agreement"); 

        WHEREAS,
PFI Holdings Corp., a Delaware corporation and the beneficial owner of all of the outstanding capital stock of the Company, and Executive are parties to certain option
agreements, dated as of the date hereof (collectively, the "Option Agreements"); 

        WHEREAS,
Executive acknowledges and agrees with the Company that Executive's services to the Company require the use of Company's and its Subsidiaries' trade secrets and other
Proprietary Information (as defined in Section 2(b) below) that the Company has made reasonable efforts to keep confidential and that derives
independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use
("Trade Secrets"); 

        WHEREAS,
Executive further acknowledges and agrees that the Company would be irreparably damaged if Executive were to provide similar services requiring the use of such Trade Secrets to
any person or entity competing with the Company or engaged in a similar business; 

        WHEREAS,
the Company and Executive desire to enter into this Agreement in order to define (among other things) the relative rights of the Company and Executive with respect to
Intellectual Property (as defined below) owned by the Company or its customers or clients to which Executive may have access or may contribute as a result of Executive's employment with the Company;
and 

        WHEREAS,
the execution and delivery of the Employment Agreement and the Option Agreements were conditioned on the execution and delivery 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
Company and Executive hereby agree as follows: 

        1.    Protection of Trade Secrets and Nonsolicitation.    

        (a)    Trade Secrets.    Executive acknowledges that he or she is familiar with the Company's Trade Secrets,
Proprietary Information (as defined below) and Intellectual Property (as defined below). Executive further acknowledges that his or her services have been and shall be of special, unique and
extraordinary value to the Company. Without limiting any other obligations of Executive pursuant to this Agreement, Executive accordingly covenants and agrees with the Company that during the period
commencing with the date of this Agreement and ending on the last day of the Protection Period (as defined below), Executive shall not, directly or indirectly, either for himself or herself or for any
other individual, corporation, partnership, joint venture or other entity, participate in any business (including, without limitation, any division, group or franchise of a larger organization) within
the United States, or in any other country in which the Company conducts or actively proposes to conduct business at any time prior to the date of termination of Executive's employment with the
Company, in which he or she would be required to employ, reveal, or otherwise utilize Trade Secrets used by the Company at any time prior to the Executive's termination. For purposes of this
Agreement, the term "participate in" shall include, without limitation, having any direct or indirect interest in any corporation, partnership, joint venture or other entity, whether as a sole
proprietor, owner, stockholder, partner, joint venturer, 

 

creditor
or otherwise, or rendering any direct or indirect service or assistance to any individual, corporation, partnership, joint venture and other business entity (whether as a director, officer,
manager, supervisor, employee, agent, consultant or otherwise). For purposes of this Agreement, the "Protection Period" shall mean the period of time
from the date of this Agreement until the first anniversary of the date of termination of Executive's employment with the Company. 

        (b)    Nonsolicitation.    Without limiting any other obligation of Executive pursuant to this Agreement, Executive
covenants and agrees that, during the Protection Period, Executive shall not (i) induce or attempt to induce any employee of the Company to leave the employ of the Company, or in any way
interfere with the relationship between the Company and any employee thereof, (ii) hire directly or through another entity any person who was an employee of the Company at any time during the
Protection Period, or (iii) call on, solicit or service any customer, supplier, licensee, licensor or other business relation of the Company in order to induce or attempt to induce such person
or entity to cease doing business with the Company or in any way interfere with the relationship between any such customer, supplier, licensee, licensor or business relation and the Company
(including, without limitation, making any negative statements or communications concerning the Company). 

        (c)    Right to Conduct Business Upon Termination.    Notwithstanding any provision to the contrary in this Agreement,
from and after the date of termination of Executive's employment with the Company, Executive shall be entitled to participate in any business in which he or she would not be required to, and does not,
employ, reveal, or otherwise utilize Trade Secrets used by the Company at any time prior to the Executive's termination. 

        2.    Nondisclosure and Nonuse of Proprietary Information.    

        (a)   Executive
agrees that he or she shall not disclose or use at any time, either during his or her employment with the Company or thereafter, any Proprietary Information
(as defined below) of which Executive is or becomes aware, whether or not such information is developed by him or her, except to the extent that such disclosure or use is directly related to and
required by Executive's performance of duties assigned to Executive by the Company. Executive shall take all reasonable and appropriate steps to safeguard Proprietary Information and to protect it
against disclosure, misuse, espionage, loss and theft. The foregoing shall not, however, prohibit disclosure by Executive of Proprietary Information that has been published in a form generally
available to the public prior to the date Executive proposes to disclose such information. Information shall not be deemed to have been published merely because individual portions of the information
have been separately published, but only if all material features comprising such information have been published in combination. 

        (b)   As
used in this Agreement, the term "Proprietary Information" means all information of a confidential or proprietary
nature (whether or not specifically labeled or identified as "confidential"), in any form or medium, that relates to or results from the business, historical or projected financial results, products,
services or research or development of the Company or its Subsidiaries or their respective suppliers, distributors, customers, independent contractors or other business relations. Proprietary
Information includes, but is not limited to, the following: (i) internal business information (including historical and projected financial information and budgets and information relating to
strategic and staffing plans and practices, business, training, marketing, promotional and sales plans and practices, cost, rate and pricing structures and accounting and business methods);
(ii) identities of, individual requirements of, specific contractual arrangements with, and information about, the Company's suppliers, distributors, customers, independent contractors or other
business relations and their confidential information; (iii) Trade Secrets, technology, know-how, compilations of data and analyses, techniques, systems, formulae, research,
records, reports, manuals, flow charts, documentation, models, data and data bases relating thereto; (iv) computer software, including operating systems, applications and program listings;
(v) inventions, innovations, ideas, devices, improvements, developments, methods, processes, designs, analyses, drawings, photographs, reports and all similar or 

2

 

related
information (whether or not patentable and whether or not reduced to practice); (vi) copyrightable works, (vii) intellectual property of every kind and description, and
(viii) all similar and related information in whatever form. 

        3.    The Company's Ownership of Intellectual Property.    

        (a)   In
the event that Executive during the term of his or her employment by the Company generates, authors, conceives, develops, acquires, makes, reduces to practice or
contributes to any discovery, formula, Trade Secret, invention, innovation, improvement, development, method of doing business, process, program, design, analysis, drawing, report, data, software,
firmware, logo, device, method, product or any similar or related information, any copyrightable work or any Proprietary Information (collectively, "Intellectual
Property"), Executive acknowledges that such Intellectual Property is and shall be the exclusive property of the Company. Any copyrightable work prepared in whole or in part by
Executive shall to be deemed "a work made for hire" to the maximum extent permitted under Section 201(b) of the 1976 Copyright Act as amended, and the Company shall own all of the rights
comprised in the copyright therein. Without limiting the foregoing, Executive hereby assigns his or her entire right, title and interest in and to all Intellectual Property to the Company. During and
after the term of Executive's employment with the Company, Executive shall promptly and fully disclose all Intellectual Property to the Company and shall cooperate with the Company to protect the
Company's interests in and rights to such Intellectual Property (including, without limitation, providing reasonable assistance in securing patent protection and copyright registrations and executing
all documents as reasonably requested by the Company, whether such requests occur prior to or after termination of Executive's employment with the Company). 

        (b)   Notwithstanding
the foregoing, however, Company shall not own and Executive shall have no obligation to assign to the Company any invention otherwise falling within the
definition of Intellectual Property for which no equipment, supplies, facility, or Trade Secret information of the Company was used and that was developed entirely on Executive's own time, unless:
(i) such Intellectual Property relates (A) to the Company's business or (B) to its actual or demonstrably anticipated research or development, or (ii) the Intellectual
Property results from any work performed by him or her for the Company or its affiliates. Executive has identified and described in detail on an attachment hereto initialed by each of the undersigned
party's or their authorized representatives, all Intellectual Property that is or was owned by him or her or was written, discovered, made, conceived or first reduced to practice by him or her alone
or jointly with another person prior to his or her employment by the Company. If no such Intellectual Property is listed, Executive represents to the Company that he or she does not now nor has he or
she ever owned, nor has he or she made, any such Intellectual Property. 

        4.    Delivery of Materials Upon Termination of Employment.    As requested by the Company from time to time and upon
the termination of Executive's employment with the Company for any reason, Executive shall promptly deliver to the Company all copies and embodiments, in whatever form, of all Proprietary Information
and Intellectual Property in Executive's possession or within his or her control (including, but not limited to, written records, notes, photographs, manuals, notebooks, documentation, program
listings, flow charts, magnetic media, disks, diskettes, tapes and all other materials containing any Proprietary Information or Intellectual Property) irrespective of the location or form of such
material and, if requested by the Company, shall provide the Company with written confirmation that all such materials have been delivered to the Company. 

        5.    Notices.    Any notice provided for in this Agreement must be in writing and must be either personally
delivered, mailed by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated: 

To the Company:

Physicians
Formula, Inc.

1055 West 8th Street

3

 

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 200

Palo Alto, California 94301

Attn: Walter G. Kortschak

           Craig D. Frances

Telephone: (650) 614-6600

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 

To Executive:

Joseph
J. Jaeger

195 Flintlock Road

Southport, CT 06890 

With
copies to: 

Gibney,
Anthony & Flaherty, LLP

665 Fifth Avenue

New York, NY 10022

Attention: Frederick W. Anthony

Telephone: (212) 688-5151

Telecopy: (212) 688-8315 

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 sent or, if mailed, five days after deposit in the U.S. mail. 

        6.    General Provisions.    

        (a)    Company Definition.    For purposes of Sections 1,  2, 3, 4 and  6(b) and (c) of this Agreement, the term "Company" shall
include all subsidiaries and affiliates of the Company. 

        (b)    Not an Employment Agreement.    Executive and the Company acknowledge and agree that this Agreement is not
intended and should not be construed to grant Executive any right to continued employment with the Company or to otherwise define the terms of Executive's employment with the Company. 

        (c)    Absence of Conflicting Agreements.    Executive hereby warrants and covenants that (i) his or her
employment by the Company and his or her execution, delivery and performance of this Agreement do not and shall not result in a breach of the terms, conditions or provisions of any agreement,
instrument, order, judgment or decree to which Executive is subject, (ii) Executive is not a party to or 

4

 

bound
by any employment agreement, noncompete agreement or confidentiality agreement with any other person or entity and (iii) upon the execution and delivery of this Agreement by the Company,
this Agreement shall be the valid and binding obligation of Executive, enforceable in accordance with its terms. 

        (d)    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, and this Agreement shall be reformed, construed and enforced in such jurisdiction as if
such invalid, illegal or unenforceable provision had never been contained herein. The parties agree that a court of competent jurisdiction making a determination of the invalidity or unenforceability
of any term or provision of this Agreement shall have the power (and, to the fullest extent permissible, shall be directed by the parties) to reduce the scope, duration or area of any such term or
provision, to delete specific words or phrases or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing
the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified. 

        (e)    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. 

        (f)    Counterparts.    This Agreement may be executed in separate counterparts, each of which is deemed to be an
original and all of which taken together constitute one and the same agreement. 

        (g)    Successors and Assigns.    Except as otherwise provided herein, this Agreement shall bind and inure to the
benefit of and be enforceable by the Company and Executive and their respective successors and assigns; provided that the rights and obligations of Executive under this Agreement may not be assigned
or delegated without the prior written consent of the Company. 

        (h)    Choice of Law.    All questions concerning the construction, validity, enforcement and interpretation of this
Agreement and the exhibits hereto shall be governed by the internal law, and not the law of conflicts, of the State of California. 

        (i)    Remedies.    Each of the parties to this Agreement shall be entitled to enforce its rights under this Agreement
specifically, to recover damages and costs (including reasonable attorneys 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 Executive's breach of any term or provision of this Agreement shall materially and irreparably harm the Company, that money damages shall accordingly not be
an adequate remedy for any breach of the provisions of this Agreement by Executive and that the Company in its sole discretion and in addition to any other remedies it may have at law or in equity may
apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any
violations of the provisions of this Agreement. 

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

*
* * * * 

5

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

	 	 	PHYSICIANS FORMULA, INC.
	

 	
 	

By	
 	

/s/  ANDRE PIETERS      
	 	 	 	 	

	

 	
 	

Its	
 	

President
	 	 	 	 	

	

 	
 	

/s/  JOSEPH J. JAEGER      
	 	 	

	 	 	Joseph J. Jaeger

QuickLinks

Exhibit 10.23

PROTECTION OF TRADE SECRETS, NONSOLICITATION AND CONFIDENTIALITY AGREEMENTQuickLinks
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Exhibit 10.24    
    

[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 Ingrid Jackel-Marken ("Executive"). 

        WHEREAS,
the Company and Executive desire to enter into an agreement pursuant to which Executive shall purchase, and the Company shall sell, 4,750 shares of the Company's Common Stock,
par value $.01 per share (the "Common Stock"), and 18.465 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, 4,750 shares of Common Stock at a price of $0.10 per share and
17.705 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 $17,705. 

        (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 

2

 

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 INGRID JACKEL-MARKEN 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. 

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        "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:

Ingrid
Jackel-Marken

2405 E. Orange Grove Blvd.

Pasadena, CA, 91104 

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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. 

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        (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/  INGRID JACKEL-MARKEN      
 Ingrid Jackel-Marken

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/  ROBERT W. MARKEN      
 Name: Robert W. Marken
	

 	

/s/  INGRID JACKEL-MARKEN      
 Witness

QuickLinks

Exhibit 10.24

PFI HOLDINGS CORP. EXECUTIVE STOCK AGREEMENT

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