Amended Bonus Agreement between Physicians Formula Holdings, Inc. and Joseph J. Jaeger

Summary

This agreement between Physicians Formula Holdings, Inc. and Joseph J. Jaeger, the Chief Financial Officer, outlines a revised bonus opportunity related to the company's initial public offering. Mr. Jaeger will receive a $250,000 bonus upon the IPO's closing and another $250,000 either after a secondary equity offering or after 24 months of continued employment, whichever comes first, provided he remains employed at each milestone. All payments are subject to applicable tax withholdings.

EX-10.20 9 a2173945zex-10_20.htm EX-10.20
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Exhibit 10.20

Physicians Formula Holdings, Inc.
1055 West 8^th Street
Azusa, California 91702

, 2006

Mr. Joseph J. Jaeger
Chief Financial Officer
Physicians Formula, Inc.
1055 West 8^th Street
Azusa, California 91702

Re:: Additional Bonus Potential

Dear Joe:

In recognition of your valuable and diligent efforts in assisting with the initial public offering (the "Initial Public Offering") of Physicians Formula Holdings, Inc. (the "Company"), we are pleased to revise the terms of your bonus opportunity of $500,000 set forth in the letter, dated December 16, 2005 (the "Original Letter"), of Physicians Formula, Inc. addressed to you. This letter shall become effective upon the closing of the Initial Public Offering, and, upon effectiveness, this letter shall amend and restate in its entirety the Original Letter.

Pursuant to the revised bonus opportunity, the Company will pay you $250,000 upon the closing of the Initial Public Offering and an additional $250,000 upon the earlier of the completion of a secondary equity offering following the Initial Public Offering, or your completion of 24 months employment with the Company following the Initial Public Offering, so long as in each such case you remain employed by the Company from the date hereof until the date of each such event. These payments will be subject to all required tax withholding and similar deductions.

Thank you for your continuing efforts and hard work.

		Sincerely,
		PHYSICIANS FORMULA HOLDINGS, INC.
		By:

		Its:		Chief Executive Officer

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