<PAGE>
UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20509
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1999.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-26568
USA Detergents, Inc.
--------------------
(Exact name of registrant as specified in its charter)
Delaware 11-2935430
- ----------------------------------- ------------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1735 Jersey Avenue, North Brunswick, New Jersey 08902
-----------------------------------------------------
(Address of principal executive offices -- Zip code)
(732) 828-1800
--------------
(Registrant's telephone number, including area code)
------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or such shorter period that the registrant was
required to file reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
CLASS OF STOCK NO. OF SHARES OUTSTANDING DATE
- -------------- ------------------------- ---------------
Common 13,825,602 August 1, 1999
<PAGE>
USA DETERGENTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1999 1998
---------- --------------
<S> <C> <C>
ASSETS
Current assets:
Cash .............................................................. $ 634 $ --
Restricted funds................................................... 2,002 --
Accounts receivable, net of customer allowances and
doubtful accounts of $1,025 and $1,111 at June 30, 1999 and
December 31, 1998, respectively................................... 20,655 19,683
Inventories........................................................ 17,300 14,668
Refundable income taxes............................................ 3,216 3,221
Prepaid expenses and other current assets.......................... 5,643 4,591
---------- --------------
Total current assets.............................................. 49,450 42,163
Property and equipment--net........................................ 44,950 45,245
Deferred financing costs........................................... 1,721 1,376
Other non-current assets........................................... 1,843 2,145
---------- --------------
Total assets...................................................... $97,964 $ 90,929
========== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt.................................. $ 5,534 $ 3,334
Cash overdraft..................................................... -- 476
Accounts payable................................................... 19,541 22,670
Accrued expenses................................................... 14,781 12,457
Other current liabilities.......................................... 296 730
---------- --------------
Total current liabilities......................................... 40,152 39,667
Long-term debt--net of current portion............................. 37,430 32,969
Other non-current liabilities...................................... 81 90
Deferred rent payable.............................................. 780 889
---------- --------------
Total liabilities................................................. 78,443 73,615
---------- --------------
Commitments and Contingencies
Stockholders' equity:
Preferred stock--no par value; authorized 1,000,000 shares,
none issued....................................................... -- --
Common stock--$.01 par value; authorized 30,000,000 shares, issued
and outstanding 13,825,602 shares at June 30, 1999 and
December 31, 1998................................................. 138 138
Additional paid-in capital......................................... 29,200 29,200
Deficit............................................................ (9,642) (11,849)
Note receivable from shareholder................................... (175) (175)
---------- --------------
Total stockholders' equity........................................ 19,521 17,314
---------- --------------
Total liabilities and stockholders' equity........................ $97,964 $ 90,929
========== ==============
</TABLE>
See Notes to Consolidated Financial Statements.
2
<PAGE>
USA DETERGENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT NET INCOME PER SHARE INFORMATION)
<TABLE>
<CAPTION>
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
--------------------- ----------------------
1999 1998 1999 1998
--------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales...................................... $58,776 $54,072 $118,166 $110,750
Cost of goods sold............................. 38,802 36,826 77,843 76,803
--------- ---------- ---------- ----------
Gross profit................................... 19,974 17,246 40,323 33,947
Selling, general and administrative............ 17,941 14,493 35,980 28,927
Restructuring costs............................ (113) 400 (113) 400
Litigation settlement.......................... -- 3,266 -- 3,266
--------- ---------- ---------- ----------
17,828 18,159 35,867 32,593
Income from operations......................... 2,146 (913) 4,456 1,354
Interest and amortization of deferred
financing costs--net.......................... 1,064 1,337 2,150 2,240
--------- ---------- ---------- ----------
Income/(loss) before provision for income
taxes......................................... 1,082 (2,250) 2,306 (886)
Provision/(benefit) for income taxes........... (23) 25 35 46
--------- ---------- ---------- ----------
Income/(loss) before extraordinary charge ..... 1,105 (2,275) 2,271 (932)
Extraordinary charge........................... -- -- 64 --
--------- ---------- ---------- ----------
Net income/(loss).............................. $ 1,105 $(2,275) $ 2,207 $ (932)
========= ========== ========== ==========
Basic income/(loss) per share before
extraordinary charge.......................... $ .08 $ (.16) $ .16 $ (.07)
Extraordinary charge........................... -- -- -- --
--------- ---------- ---------- ----------
Basic net income/(loss) per share.............. $ .08 $ (.16) $ .16 $ (.07)
========= ========== ========== ==========
Weighted average shares outstanding............ 13,826 13,825 13,826 13,825
========= ========== ========== ==========
Diluted income/(loss) per share before
extraordinary charge.......................... $ .08 $ (.16) $ .16 $ (.07)
Extraordinary charge........................... -- -- -- --
--------- ---------- ---------- ----------
Diluted net income/(loss) per share............ $ .08 $ (.16) $ .16 $ (.07)
========= ========== ========== ==========
Weighted average shares outstanding and common
share equivalents............................. 13,858 13,825 13,864 13,825
========= ========== ========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
3
<PAGE>
USA DETERGENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1999, AND 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
1999 1998
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss)................................................... $ 2,207 $ (932)
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation........................................................ 2,997 2,582
Loss on disposal of fixed assets.................................... 235 --
Amortization of deferred financing costs............................ 373 661
Amortization of slotting............................................ 1,695 2,311
Other amortization.................................................. 385 313
Change in the provision for customer allowances and doubtful
accounts........................................................... (86) 202
Change in deferred rent............................................. (94) (109)
Changes in operating assets and liabilities:
(Increase)/decrease in accounts receivable.......................... (886) 3,444
(Increase)/decrease in inventories.................................. (2,632) 3,648
Increase in prepaid expenses and other current assets............... (2,747) (2,039)
(Increase)/decrease in other non-current assets..................... (117) 13
Decrease in cash overdraft.......................................... (476) --
Decrease in accounts payable and accrued expenses................... (805) (6,205)
Decrease in refundable income taxes................................. 5 63
--------- ---------
Net cash provided by operating activities.......................... 54 3,952
========= =========
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment.................................. (2,937) (2,705)
--------- ---------
Net cash used in investing activities.............................. (2,937) (2,705)
========= =========
CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayments of current portion of long-term debt................. -- (178)
Net proceeds from/(repayments of) credit facilities................. 8,661 (5,000)
Increase in restricted funds........................................ (2,002) --
(Decrease)/increase in note payable................................. (2,000) 4,000
(Decrease)/increase in other current liabilities.................... (449) 168
Repayments of Oracle purchase obligation............................ -- (849)
Increase in deferred financing costs................................ (684) (740)
(Decrease)/increase in other non-current liabilities................ (9) 3,000
Net proceeds from exercise of options............................... -- 114
--------- ---------
Net cash provided by financing activities.......................... 3,517 515
========= =========
Net increase in cash................................................. 634 1,762
Cash at beginning of period.......................................... 0 1,848
--------- ---------
Cash at June 30, .................................................... $ 634 $ 3,610
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS FOR OPERATING ACTIVITIES:
Interest paid....................................................... $ 1,703 $ 1,471
========= =========
Income taxes paid................................................... $ 208 $ 64
========= =========
Income tax refunds received......................................... $ 83 $ 64
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS FOR FINANCING ACTIVITIES:
Value of warrants issued in connection with bank and related party
financings......................................................... $ -- $ 750
========= =========
</TABLE>
See Notes to Consolidated Financial Statements.
4
<PAGE>
USA DETERGENTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
NOTE 1 -- BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared by the Company pursuant to the rules of the Securities and Exchange
Commission ("SEC") and in the opinion of management, include all adjustments,
(consisting of normal recurring accruals) necessary for the fair presentation
of the Company's financial position, results of operations and cash flows.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such SEC rules. The
Company believes the disclosures included herein are adequate to make such
financial statements not misleading. The results for the interim periods
presented are not necessarily indicative of the results to be expected for
the full year. These financial statements should be read in conjunction with
the Company's December 31, 1998 Form 10-K.
Reclassification -- Certain reclassifications have been made to prior
period amounts to conform with the presentation for the current period.
NOTE 2 -- LEGAL PROCEEDINGS
In connection with the quarterly and annual results of operations
originally reported by the Company for certain fiscal quarters in 1996 and
1997 and the fiscal year ended December 31, 1996, the Company has received a
formal request from the Securities and Exchange Commission (the "SEC") for
the production of various documents and the testimony of certain current and
former employees. The Company has been providing documentation and other
materials to the SEC in response to the request, and the testimony of certain
persons has been taken.
On September 12, 1997, the Company became aware of a claim by North
Brunswick Water, LLC and North Brunswick Township (collectively "NBWC")
covering among other things, unpaid water and sewer charges. The initial
amount of this claim was $5,000,000. NBWC also claimed that the Company was
precluded under local ordinances from using wells on its site to draw water
for production purposes. On October 20, 1997, the Company commenced an action
in the Superior Court of New Jersey, Chancery Division, Middlesex County,
challenging NBWC's claim and seeking injunctive relief to prevent NBWC from
taking any steps to discontinue water and sewer service pending resolution of
the claim. As a result of the institution of the litigation, the Company and
NBWC entered into a Consent Order to prevent discontinuation of water and
sewer service. Pursuant to the terms of this Consent Order, the Company has
paid approximately $860,000 to NBWC since October 1997, subject to refund.
On March 10, 1998, the Court entered an Order granting the Company's
motion for partial summary judgment. The Court ruled that local ordinances
did not preclude use of the wells for manufacturing purposes. This ruling was
appealed to the Appellate Division of Superior Court by the defendants.
Since commencement of the litigation, the parties have engaged in
substantive and detailed settlement discussions. On January 11, 1999, the
parties agreed in principle upon a settlement, under which the Company will
pay $40,000 to NBWC, which represents certain unpaid, contested sewer charges
for 1998. In addition, the Company agreed to pay a total of $600,000 over
three years plus simple interest at a rate of 5% in return for NBWC granting
the Company a perpetual license at no additional costs to use the wells up to
the full extent ultimately permitted by the New Jersey Department of
Environmental Protection (NJDEP). The pending litigation, including the
appeal of the March 10, 1998 order has been dismissed.
The Company is also involved in various routine legal proceedings of a
nature it deems to be customary to a company its size. The Company believes
the ultimate disposition of these actions will not have a material adverse
effect on its business, financial condition or results of operations.
5
<PAGE>
USA DETERGENTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
NOTE 3 -- NET INCOME PER SHARE
Basic net income per share is based on the weighted average number of
shares outstanding during the periods presented. Diluted net income per share
also includes potential Common Stock that is dilutive.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The Company's quarterly and annual operating results are affected by a
wide variety of factors that could materially and adversely affect revenues
and profitability, including competition from other suppliers of laundry and
household cleaning products; changes in consumer preferences and spending
habits; the inability to successfully manage growth; seasonality; the ability
to introduce and the timing of the introduction of new products; the
inability to obtain adequate supplies or materials at acceptable prices; and
the inability to reduce expenses to a level commensurate with revenues. As a
result of these and other factors, the Company may experience material
fluctuations in future operating results on a quarterly or annual basis,
which could materially and adversely affect its business, financial
condition, operating results, and stock price. Furthermore, this document and
other documents filed by the Company with the Securities and Exchange
Commission (the "SEC") contain certain forward looking statements with
respect to the business of the Company. These forward-looking statements are
subject to certain risks and uncertainties, including those mentioned above,
which may cause actual results to differ significantly from these
forward-looking statements. The Company undertakes no obligation to publicly
release the results of any revisions to these forward-looking statements
which may be necessary to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events. An investment in
the Company involves various risks, including those mentioned above and those
which are detailed from time to time in the Company's SEC filings.
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THREE MONTHS ENDED JUNE 30, 1998
Net sales for the three months ended June 30, 1999 increased 8.7% to $58.8
million from $54.1 million for the three months ended June 30, 1998. The
increase was substantially the result of an increase in unit sales of liquid
laundry products. Gross profit for the three months ended June 30, 1999
increased 15.8% to $20.0 million from $17.2 million for the three months
ended June 30, 1998. Gross profit as a percentage of net sales increased to
34.0% for the three months ended June 30, 1999 from 31.9% for the same period
in 1998. The increase in gross profit as a percentage of net sales was
substantially attributable to a decrease of 2.0% in material costs due to
more favorable pricing and manufacturing efficiencies. (See "Current
Developments" later in this Item 2)
Selling, general and administrative expenses increased 23.8% to $17.9
million in the three months ended June 30, 1999 from $14.5 million for the
three months ended June 30, 1998. As a percentage of net sales, these
expenses increased to 30.5% for the three months ended June 30, 1999 from
26.8% for the same period in 1998. The increase as a percentage of net sales
was substantially due to an increase of 3.4% in marketing funds (co-op
advertising, promotional allowances and slotting amortization) and an
increase in commissions of 0.6%. These increases were offset in part by a
decrease as a percentage of net sales of 0.3% in allowance for doubtful
accounts.
The restructuring credit of approximately $113,000 relates to a sublease
of a previously closed facility which occurred earlier than expected.
Interest and amortization of deferred financing costs-net decreased to
$1.1 million for the three months ended June 30, 1999 from $1.3 million for
the three months ended June 30, 1998, primarily as a result of lower
amortization of warrant and bank closing costs related to the Company's
credit facilities.
Provision/(benefit) for income taxes for the three month periods ended
June 30, 1999 and June 30, 1998 are based on actual tax computations for each
of the periods. The difference between the effective rates and the statutory
rate relates primarily to the Company's net operating loss carry forward, for
which the Company has not provided a tax benefit.
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO SIX MONTHS ENDED JUNE 30, 1998
Net sales for the six months ended June 30, 1999 increased 6.7% to $118.2
million from $110.8 million for the six months ended June 30, 1998. The
increase was substantially the result of an increase in unit sales of liquid
laundry products.
7
<PAGE>
Gross profit for the six months ended June 30, 1999 increased 18.8% to
$40.3 million from $33.9 million for the six months ended June 30, 1998.
Gross profit increased as a percentage of net sales to 34.1% for the six
months ended June 30, 1999 from 30.7% for the same period in 1998. The
increase in gross profit as a percentage of net sales was substantially
attributable to a decrease of 2.7% in material costs due to more favorable
pricing and manufacturing efficiencies, and to a lesser extent, by decreases
as a percentage of net sales of 0.5% and 0.2% in distribution and
manufacturing overhead costs, respectively, resulting from improved cost
control measures, offset by a 0.3% increase in direct labor. (See "Current
Developments" later in this Item 2)
Selling, general and administrative expenses increased 24.4% to $36.0
million for the six months ended June 30, 1999 from $28.9 million for the six
months ended June 30, 1998. As a percentage of net sales, these expenses
increased to 30.4% for the six months ended June 30, 1999 from 26.1% for the
same period in 1998. The increase as a percentage of net sales was
substantially due to an increase of 3.4% in marketing funds (co-op
advertising, promotional allowances and slotting amortization), 0.5% in sales
commissions, and 0.2% in consulting expenses.
The restructuring credit of approximately $113,000 relates to a sublease
of a previously closed facility which occurred earlier than expected.
The extraordinary charge of approximately $64,000 relates to the write-off
of deferred financing costs related to the early extinguishment of the
Company's prior credit facility with PNC Bank, N.A., now replaced by the
Company's existing credit facility with a group of banks lead by FINOVA
Capital Corporation.
Interest and amortization of deferred financing costs-net was $2.2 million
at June 30, 1999 and 1998. Interest expense increased $0.2 million primarily
as a result of higher average outstanding borrowings, and amortization of
warrant and bank closing costs decreased $0.2 million.
Provision for income taxes for the six month periods ended June 30, 1999
and June 30, 1998 are based on actual tax computations for each of the
periods. The difference between the effective rates and the statutory rate
relates primarily to the Company's net operating loss carry forward, for
which the Company has not provided a tax benefit.
In the second quarter of 1998, the Company settled for $10.0 million a
stockholder class action. The Company recorded a charge during that quarter
of approximately $3.3 million which included legal fees, after insurance and
other participations. In addition, the Company recorded a $400,000 charge
related to its future lease commitment, offset by sublease income, and
associated lease expenses for its Edison, New Jersey facility which was
closed during the second quarter of 1997.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1999, the Company's working capital was $9.3 million
compared to working capital of $2.5 million at December 31, 1998.
Net cash provided by operating activities for the six months ended June
30, 1999 was $0.1 million, compared to $4.0 million for the six months ended
June 30, 1998. The cash provided by operating activities in the six months
ended June 30, 1999 resulted primarily from depreciation and amortization of
$5.5 million and net income of $2.2 million, offset in part by an increase in
prepaid expenses and other current assets of $2.7 million, an increase in
inventories of $2.6 million, an increase in accounts receivable of $0.9
million, a decrease in accounts payable and accrued expenses of $0.8 million,
and a decrease in cash overdraft of $0.5 million. Net cash used in investing
activities for the six months ended June 30, 1999 was $2.9 million relating
to the acquisition and upgrades of production equipment and information
systems. The Company anticipates that capital expenditures for the remaining
six months of fiscal 1999 will be approximately $2.0 million, which includes
expenditures for continued enhancements to the Company's manufacturing,
distribution and information systems.
Net cash provided by financing activities for the six months ended June
30, 1999 was $3.5 million, which resulted primarily from proceeds from bank
lenders of $8.7 million, offset in part by an increase in restricted funds of
$2.0 million, a decrease in note payable of $2.0 million, and an increase in
deferred financing costs of $0.7 million.
8
<PAGE>
On February 26, 1999, the Company refinanced its existing indebtedness
with a group of banks lead by FINOVA Capital Corporation to provide for an
additional $14.5 million of financing. The $14.5 million of additional
financing is to be repaid in monthly installments based upon a ten-year
amortization schedule at prime plus 1.0%. The increased amount is due, along
with all amounts outstanding under the previously existing FINOVA credit
facility, in September 2003. The Company used $10.1 million of the additional
proceeds to pay off its remaining indebtedness to PNC Bank. An additional
$4.0 million of the proceeds was set aside for the repayment of the Company's
indebtedness to 101 Realty Associates, LLC ("101 Realty") over the following
year, conditioned on the Company meeting certain working capital criteria and
achieving specified profitability levels for fiscal 1998 and 1999. As a
result of meeting the requirements for fiscal 1998, $2.0 million of the 101
Realty debt was repaid in May 1999 from the $4.0 million set aside for that
purpose. The Company's agreement with FINOVA provides for the remaining $2.0
million of reserved funds to be applied to the repayment of amounts owed to
FINOVA, to the extent that the fiscal 1999 criteria for the repayment of the
101 Realty debt are not met. The increase in availability under the
refinanced FINOVA credit facility required the granting of a first mortgage
security interest to FINOVA and the other participating lenders on the
Company's real property located in New Jersey and Missouri.
The Company requires the availability of sufficient cash flow and
borrowing capacity to finance its operations, meets its debt service
obligations and fund future capital expenditure requirements. Management
believes the Company's present credit facility will adequately support
ongoing operations, debt service and capital expenditure requirements. The
Company's operating plan for 1999 includes continuing its cost control
programs. Such programs have included controlling temporary labor, additional
automation of manufacturing facilities, further production rationalization,
increased use of high speed fillers and cartoners and improved production
planning and control.
CURRENT DEVELOPMENTS
Recently, the cost of resin and paperboard have increased approximately
$.05 per pound and $37.00 per ton, respectively. These increases will impact
the cost to the Company of plastic bottles and corrogated boxes. The Company
believes that the effect of the recent commodity price increase will be
offset by other material cost reductions, product design, manufacturing and
distribution efficiencies and price increases for certain classes of trade.
There can be no assurance that future price increases from the Company's
suppliers will not have a material adverse effect on the Company or that the
Company will be able to react with price or product changes of its own to
offset these price increases.
IMPACT OF INFLATION
The Company believes that the relatively moderate rates of inflation
recently experienced in the United States have not had a significant effect
on net sales or profitability.
YEAR 2000 COMPLIANCE
The inability of computers, software and other equipment using
microprocessors to recognize and properly process data fields containing a
two digit year is commonly referred to as the Year 2000 problem. As the Year
2000 approaches, such systems may be unable to accurately process certain
date-based information. This section discusses the processes currently being
implemented by the Company with respect to issues relating to the Year 2000.
Readiness
The Company initiated its Year 2000 project in late 1996 with a complete
review of all products, manufacturing facilities, information systems and the
impact on the Company from customers and suppliers who may fail to deal with
the issue. The Year 2000 issues that needed to be addressed within the
organization pertain to the Company's internal information systems that date
stamp transactions. The conversion of all current applications, operating
systems, databases, and EDI transactions with Year 2000 issues was completed
by the end of the first quarter of 1999.
9
<PAGE>
Products
The Year 2000 issue with respect to the Company's product line is minimal
since its products are not date sensitive and require no internal or external
date tracking.
Manufacturing Facilities
All existing pieces of machinery and equipment have been reviewed and
examined and management believes that any Year 2000 issues with respect to
this machinery and equipment will not affect production or delivery of the
Company's products since the equipment is not date reliant and the movement
of products is a manual process.
Information Systems
Year 2000 issues with respect to information systems, have been addressed
in six major areas:
<TABLE>
<CAPTION>
<S> <C>
I. Operating Systems
II. Databases
III. Business Systems
IV. Support Systems
V. Backup Systems
VI. Hardware Platforms
</TABLE>
The following discusses the status of each area:
Operating System
The Company has been advised by its software vendors that all existing
operating systems it uses, Novell 3.12, Windows NT, Unix 4.0D, and Windows 95,
currently are Year 2000 compliant.
Databases
The Company has been advised by its software vendors that all databases
used by the Company's current systems and anticipated new systems are Year
2000 compliant.
Business Systems
The Company believes that all existing business systems are Year 2000
compliant.
Support Systems
Support systems include all desktop applications. These applications have
been upgraded to be Year 2000 compliant.
Backup Systems
The Company has been advised by its software vendors that all applications
currently used by the Company to backup business applications and databases
are Year 2000 compliant.
Hardware Platforms
The Company has been advised by its hardware vendors that all platforms
running the systems and databases mentioned above are Year 2000 compliant.
Customers
The Company has responded to all customers who have requested Year 2000
compliance information, plans, and due dates.
10
<PAGE>
Suppliers
The Company has contacted its major suppliers and has asked them to
respond to questions concerning their ability to be Year 2000 compliant on a
timely basis. The Company plans to monitor the information received in
response to these inquiries on a continuous basis into the Year 2000.
Cost of Year 2000 Readiness
Based on management's assessment of the Company's systems, the cost of
addressing Year 2000 issues is not expected to have a material adverse impact
on the Company's financial condition. To date, the Year 2000 conversion costs
incurred are approximately $80,000, and are not expected to exceed $100,000.
The amounts will be financed through working capital. (Conversion costs do
not include funds spent by the Company on the purchase of its Oracle system,
which would have been acquired irrespective of any Year 2000 issues).
Risk of the Company's Year 2000 Issues
Achieving Year 2000 compliance is dependent on many factors, some of which
are not completely within the Company's control. There can be no assurance
that the Company has, or will be able to identify, all aspects of its
business that are subject to Year 2000 problems of its customers or
suppliers. There also can be no assurance that the Company's software vendors
are correct in their assertions that the software is Year 2000 compliant, or
that the Company's estimate of the costs of systems preparation for the Year
2000 will prove to be accurate. Should either the Company's internal systems
or internal systems of one or more significant suppliers or customers fail to
achieve Year 2000 compliance, or the Company's estimate of the costs of
becoming Year 2000 compliant prove to be materially inaccurate, the Company's
business and results of operations could be adversely affected.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The Company's carrying value of cash, restricted funds, trade accounts
receivable, accounts payable, accrued expenses, taxes payable, and existing
revolving line of credit facility, and term loans are a reasonable
approximation of their fair value.
The Company has not entered into, and does not expect to enter into,
financial instruments for trading or hedging purposes.
The Company is currently exposed to material future earnings or cash flow
exposures from changes in interest rates on long-term debt obligations since
the majority of the Company's long-term debt obligations are at variable
rates. The Company does not currently anticipate entering into interest rate
swaps and/or similar instruments.
11
<PAGE>
PART II -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS:
In connection with the quarterly and annual results of operations
originally reported by the Company for certain fiscal quarters in 1996 and
1997 and the fiscal year ended December 31, 1996, the Company has received a
formal request from the Securities and Exchange Commission (the "SEC") for
the production of various documents and the testimony of certain current and
former employees. The Company has been providing documentation and other
materials to the SEC in response to the request, and the testimony of certain
persons has been taken.
On September 12, 1997, the Company became aware of a claim by North
Brunswick Water, LLC and North Brunswick Township (collectively "NBWC")
covering among other things, unpaid water and sewer charges. The initial
amount of this claim was $5,000,000. NBWC also claimed that the Company was
precluded under local ordinances from using wells on its site to draw water
for production purposes. On October 20, 1997, the Company commenced an action
in the Superior Court of New Jersey, Chancery Division, Middlesex County,
challenging NBWC's claim and seeking injunctive relief to prevent NBWC from
taking any steps to discontinue water and sewer service pending resolution of
the claim. As a result of the institution of the litigation, the Company and
NBWC entered into a Consent Order to prevent discontinuation of water and
sewer service. Pursuant to the terms of this Consent Order, the Company has
paid approximately $860,000 to NBWC since October 1997, subject to refund.
On March 10, 1998, the Court entered an Order granting the Company's
motion for partial summary judgment. The Court ruled that local ordinances
did not preclude use of the wells for manufacturing purposes. This ruling was
appealed to the Appellate Division of Superior Court by the defendants.
Since commencement of the litigation, the parties have engaged in
substantive and detailed settlement discussions. On January 11, 1999, the
parties agreed in principle upon a settlement, under which the Company will
pay $40,000 to NBWC, which represents certain unpaid, contested sewer charges
for 1998. In addition, the Company agreed to pay a total of $600,000 over
three years plus simple interest at a rate of 5% in return for NBWC granting
the Company a perpetual license at no additional costs to use the wells up to
the full extent ultimately permitted by the NJDEP. The pending litigation,
including the appeal of the March 10, 1998 order, has been dismissed.
The Company is also involved in various routine legal proceedings of a
nature it deems to be customary to a company its size. The Company believes
the ultimate disposition of these actions will not have a material adverse
effect on its business, financial condition or results of operations.
ITEM 2. CHANGES IN SECURITIES:
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES:
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS:
a) The Company's Annual Meeting of Stockholders was held on May 12,
1999.
b) The following matters were voted upon and approved by the Company's
stockholders at the annual meeting:
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<PAGE>
(i) The election of five directors to serve for the ensuing year.
The following nominees were elected as directors of the Company
(with the Company's stockholders having voted as set forth
below):
<TABLE>
<CAPTION>
WITHHELD AUTHORITY
NOMINEE VOTES FOR TO VOTE
- ------------------ ------------ ------------------
<S> <C> <C>
Frederick R. Adler 11,430,323 99,813
Daniel Bergman 11,426,123 104,013
Uri Evan 11,432,138 97,998
Christopher Illick 11,433,303 96,833
Richard A. Mandell 11,431,973 98,163
</TABLE>
(ii) Amendment of the Company's 1995 Stock Option Plan to increase
the number of shares available for issuance thereunder. The
Company's stockholders voted as follows: For: 9,731,389,
Against: 1,785,685, Abstentions: 13,062
(iii) The ratification of the appointment of Deloitte & Touche LLP as
the Company's independent certified public accountants for the
fiscal year ending December 31, 1999. The Company's
stockholders voted as follows: For: 11,475,019, Against:
36,457, Abstentions: 18,660.
ITEM 5. OTHER INFORMATION:
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
(a) Exhibits
10.37 Subordination Agreement, dated as of February 25, 1999, by and
among the Registrant, 101 Realty Associates, L.L.C. and FINOVA
Capital Corporation (for itself and certain other
institutions).
10.38 West Coast Supply Agreement, dated December 7, 1995, between
the Registrant and Owens-Brockway Plastic Products.***
10.39 Kansas City/Harrisonville, MO Supply Agreement, dated as of
December 18, 1996, between the Registrant and Owens-Brockway
Plastic Products Inc.***
10.40 Amendment to Label Supply Agreement between Owens-Illinois
Labels, Inc. and USA Detergents which was effective January 1,
1997, between the Registrant and Owens-Illinois Labels, Inc.***
10.41 Trigger Sprayer Supply Agreement, dated May 29, 1997, between
the Registrant and Owens-Illinois Closure, Inc.***
10.42 Supply Agreement, dated July 15, 1997, between the Registrant
and Owens-Illinois Labels Inc.***
10.43 Amendment to Existing Supply Agreement between USA Detergents
and Owens-Brockway Plastics of November 29, 1994, dated August
1, 1997, between the Registrant and Owens-Brockway Plastic
Products Inc. on behalf of itself and Owens-Illinois Closure
Inc. and Owens-Illinois Labels, Inc. and its affiliated
companies.***
10.44 Amendment to Existing Supply Agreements between USA Detergents
and Owens-Illinois Plastic Products Inc., Owens-Illinois
Closure Inc. and Owens-Illinois Labels Inc., dated January 1,
1999, between the Registrant and Owens-Illinois Plastic
Products Inc., Owens-Illinois Closure Inc. and Owens-Illinois
Labels, Inc.***
*** Confidentiality Requested, confidential portions have been
omitted and filed separately with the Commission, as required by
Rule 24b-2 of the Securities Exchange Act of 1934.
27 Financial Data Schedule
(b) Reports on Form 8-K
None.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
USA DETERGENTS, INC.
August 11, 1999
By /s/ Uri Evan
-----------------------------------------
Uri Evan
Chairman of the Board and
Chief Executive Officer
August 11, 1999
/s/ Richard D. Coslow
----------------------------------------
Richard D. Coslow
Executive Vice President and
Chief Financial Officer
14
<PAGE>
THIS INSTRUMENT WAS PREPARED
BY AND SHOULD BE RETURNED TO:
Thomas E. Schnur, Esq.
Vedder, Price, Kaufman & Kammholz
222 North LaSalle Street, Suite 2600
Chicago, Illinois 60601-1003
SUBORDINATION AGREEMENT
-----------------------
THIS SUBORDINATION AGREEMENT dated as of FEBRUARY 25, 1999, is made by
and among FINOVA CAPITAL CORPORATION, a Delaware corporation, as contractual
representative (together with its successors and assigns, "AGENT"), for itself
and certain other institutions ("LENDERS") from time to time parties, as lenders
to the Loan Agreement as that term is defined below, 101 REALTY ASSOCIATES,
L.L.C., a New Jersey limited liability company ("CREDITOR"), and USA DETERGENTS,
INC., a Delaware corporation ("BORROWER").
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, pursuant to a certain promissory note dated FEBRUARY 25, 1998
(the "NOTE") in the aggregate principal amount of FOUR MILLION AND NO/100
($4,000,000.00), Creditor is entitled to receive certain principal and interest
payments from time to time from Borrower (such payments and any other payment to
Creditor pursuant to such Note or any amendment, supplement or restatement
thereof are referred to herein as the "CREDITOR DEBT");
WHEREAS, pursuant to a certain Amended and Restated Loan and Security
Agreement dated of even date herewith, made by Borrower and the Co-Borrowers
defined therein, the Agent and the Lenders (together with the Schedule thereto,
collectively, as supplemented, amended or modified from time to time, the "LOAN
AGREEMENT"), Borrower is indebted to Lenders in the aggregate amount of SIXTY
MILLION AND 00/100 DOLLARS ($60,000,000) in principal outstanding from time to
time exclusive of accrued interest, charges, expenses, attorneys' fees and other
sums chargeable to Borrower by Agent (all such indebtedness, interest, charges
and expenses along with any modification, amendment, refinancing or supplement
thereto, being hereinafter referred to as the "SENIOR DEBT");
WHEREAS, as security for the payment of all liabilities and obligations
due under the Senior Debt, Borrower has granted to Agent for its benefit and the
benefit of the Lenders, among other things, a first Mortgage, Assignment of
Rents and Leases, and Security Agreement dated of even date herewith encumbering
the property legally described in Exhibit A attached hereto and hereby made a
part hereof (the "REAL ESTATE") and the personal property described in said
mortgage including, without limitation, its accounts, deposit accounts, goods,
equipment, furniture and fixtures (collectively, the "MORTGAGED PROPERTY") (said
Mortgage and any other lien or security interest which Agent may obtain now or
at any time hereafter in the assets or property of Borrower is collectively
referred to herein as the "SENIOR LIEN");
1
<PAGE>
WHEREAS, as an inducement to and part of the consideration for the loan
to Borrower of the Senior Debt, which Creditor acknowledges that Agent and
Lenders would be unwilling to do without this Agreement, Creditor has agreed,
among other things, (i) to subordinate the Creditor Debt to the Senior Debt,
(ii) to subordinate Creditor's Mortgage and Security Agreement dated FEBRUARY
25, 1998 and recorded MARCH 6, 1998, at Book 5472, Page 79 in the office of the
clerk/register of Middlesex, New Jersey (said mortgage is referred to herein as
the "SECOND MORTGAGE"), and any other lien which the Creditor may obtain now or
at any time hereafter in the assets or property of Borrower (collectively, the
"CREDITOR LIEN") to the Senior Lien and (iii) to forebear from foreclosing upon
the Second Mortgage or any part of the Mortgaged Property or any other security
with respect to the Creditor Debt or otherwise exercising any creditor's remedy
or taking any action against any Borrower upon any of its obligations to
Creditor until the Senior Debt has been paid in full in cash or otherwise
satisfied (as evidenced by the cancellation of the Notes). The term "NOTES"
shall mean, collectively, the Amended and Restated Revolving Loan Notes, the
Amended and Restated Term Loan A Notes, the Amended and Restated Term Loan B
Notes and the Term Loan C Notes, as such terms are defined in the Loan
Agreement).
NOW, THEREFORE, in consideration of the foregoing preambles which are
incorporated herein by this reference, the mutual covenants herein contained,
and for other good and valuable consideration, it is hereby agreed as follows:
1. Priority of Liens. Notwithstanding the date, time, manner or order
of recording, registration, perfection or attachment of the security interests
and liens on the Real Estate or the Mortgaged Property granted by Borrower to
either of Agent or Creditor, and notwithstanding the usual application of the
priority provisions of any mortgage foreclosure laws or the Uniform Commercial
Code as in effect in any jurisdiction or any other applicable law or judicial
decision of any jurisdiction, or whether Creditor holds possession of all or any
part of the Mortgaged Property, or if the Agent is perfected without filing or
possession in any part of the Mortgaged Property, the Senior Lien shall be a
first, senior and prior security interest in and lien on the Real Estate and the
Mortgaged Property, superior to the Creditor Lien, if any. The priority of liens
set forth in the previous sentence states the relative priority of liens of the
parties to this Agreement, and no party hereto represents or warrants to any
other party that such other party's liens are prior to any lien on the Mortgaged
Property of any person who is not a party to this Agreement (except that
Borrower represents and warrants to Agent that the Senior Lien is a first lien
on the Real Estate and the Mortgaged Property).
2. Subordination of Creditor Debt.
a. Creditor hereby subordinates any and all claims now or hereafter
owing to it by Borrower under the Creditor Debt to any and all claims
of Agent under the Senior Debt (including, without limitation, interest
on the Senior Debt paid or accrued after the commencement of an
Insolvency Proceeding (as defined below) and payment of or for adequate
protection pursuant to any Insolvency Proceeding (as defined below) or
mortgage foreclosure proceeding and agrees that all claims of Agent
shall be paid in full in cash or otherwise satisfied before any payment
(other
2
<PAGE>
than an Allowed Payment under subsection 2(b) below) may be made on the
Creditor Debt, whether of principal or interest or other charges or
advances.
b. Until all of the Senior Debt has been finally paid, in cash or
otherwise satisfied, Borrower shall not make and Subordinated Lender
shall not accept any direct or indirect payment or prepayment in cash,
property or securities, by set-off or otherwise, with respect to any
Creditor Debt without the prior written consent of Agent, except that
(i) scheduled monthly payments of interest only under the Note may be
paid monthly in arrears, and (ii) certain principal prepayments as
permitted in the Loan Agreements (each an "ALLOWED PAYMENT") if, and
only to the extent that at the time of any such Allowed Payment no
"Event of Default" has occurred and is continuing under the Loan
Agreement and no Event of Default would result from the making of such
Allowed Payment. In the event that any funds (other than an Allowed
Payment) shall be paid or delivered to Creditor before the Senior Debt
shall have been paid in full or otherwise satisfied, such funds shall
be held in trust by Creditor for and immediately paid and delivered to
Agent (in the form received endorsed over to Agent). Creditor further
agrees not to sell, assign, transfer or endorse any claim or claims
against Borrower to anyone except subject to the terms and conditions
of this Agreement.
c. Creditor agrees that the priority of the Senior Debt set forth
above shall continue during any insolvency, receivership, bankruptcy,
dissolution, liquidation, or reorganization proceeding, or in any other
proceeding, whether voluntary or involuntary, by or against Borrower,
under any bankruptcy or insolvency law or laws relating to the relief
of debtors of any jurisdiction, whether now or hereafter in effect, and
in any out-of-court composition, assignment for the benefit of
creditors or other arrangement of any kind (collectively, an
"INSOLVENCY PROCEEDING"). In the event of any payment, distribution,
division or application, partial or complete, voluntary or involuntary,
by operation of law or otherwise, of all or any part of the Real Estate
or the assets or business of Borrower, or the proceeds thereof, or any
securities of Borrower to Creditor by reason of any liquidation,
dissolution or other winding up of Borrower or its business or by
reason of any sale, receivership, insolvency or bankruptcy proceedings
or assignment for the benefit of creditors or any proceeding by or
against Borrower for any relief under any bankruptcy, reorganization or
insolvency law or laws, federal or state, or any law, federal or state,
relating to the relief of debtors, readjustment of indebtedness,
reorganization, composition or extension, then any payment or
distribution of any kind or character, whether in cash, property or
securities, which, but for the subordination provisions of this Section
2, would otherwise be payable or deliverable upon or in respect of the
Creditor Debt shall instead be paid over or delivered directly to Agent
for application to the payment of the Senior Debt to the extent
necessary to make payment of the Senior Debt remaining unpaid after
giving effect to any concurrent payment or distribution to Agent, and
no holder of the Creditor Debt shall receive any such payment or
distribution or any benefit therefrom to such extent.
3
<PAGE>
d. Agent shall have the sole right to control all aspects of
liquidation of the Real Estate and the Mortgaged Property and
disposition of the proceeds thereof, including all proceedings under
any bankruptcy or insolvency statute and the approval of any plan of
reorganization of Borrower thereunder.
3. Forbearance from Exercise of Remedies. As long as the Senior Debt
has not been paid in full in cash or otherwise satisfied, Creditor shall not (a)
take any action or exercise any remedy against Borrower to enforce the Creditor
Debt; or (b) take any action or exercise any remedy against the Real Estate or
the Mortgaged Property as a result of any breach or default under the Creditor
Debt; or (c) commence, or join with any other creditor of Borrower in
commencing, any Bankruptcy, reorganization or insolvency proceeding against
Borrower; or (d) take any action or exercise any remedy against any guarantor of
or pledgor securing the Senior Debt in order to collect any of the Creditor
Debt; or (e) take any action or exercise any remedy against any property or
assets of any guarantor of or pledgor securing the Senior Debt; or (f) take any
action or exercise any remedy with respect to any securities, equity or
otherwise of Borrower pledged to Creditor. Creditor understands and agrees that
Agent shall have the right, but shall have no obligation, to cure any default
under the Creditor Debt. Notwithstanding anything contained in this Agreement to
the contrary, in no event shall Creditor be entitled to receive and retain any
securities, equity or otherwise, or other consideration provided in (i) a plan
of reorganization or otherwise in connection with any bankruptcy or insolvency
proceeding or (ii) any other judicial or nonjudicial proceeding for the
liquidation, dissolution or winding up of Borrower or the assets or properties
of Borrower in any case until the Senior Debt is paid in full in cash or
otherwise satisfied.
4. Proceeds. The order of priority of liens set forth in Section 1
hereof shall apply to all proceeds of the Real Estate and the Mortgaged
Property, including, without limitation, any insurance proceeds payable in the
event of loss of, or damage to, the Real Estate and the Mortgaged Property.
5. Waiver of Marshaling. In the event that the Senior Debt is, or
hereafter becomes, secured by property, instruments, documents or agreements
other than the Real Estate or the Mortgaged Property (including, without
limitation, any pledge securing or guaranty of the Senior Debt by any person),
Creditor agrees that Agent shall have no obligation to marshal such other
property, instruments, documents, agreements or guaranties before enforcing its
rights against the Real Estate or the Mortgaged Property or its rights herein as
against Creditor.
6. Perfection and Release of Liens. Creditor hereby agrees to execute
and deliver such documents, instruments, lien releases, assignments and
financing statements and do such acts as may be necessary in order for Agent to
establish and maintain a first, valid Mortgage on the Real Estate and a first,
valid and perfected security interest in the Mortgaged Property. Upon payment
and satisfaction in full of the Creditor Debt, Creditor shall cooperate fully in
releasing the Creditor Lien, if in existence at such time, as soon as
practicable upon the request of Agent.
7. No Contest of Security Interest. Creditor shall not contest the
validity, perfection or enforceability of any lien or security interest granted
to Agent by Borrower, and Creditor agrees to cooperate in the defense of any
action contesting the validity, perfection or enforceability of such liens or
security interests. Nothing in this Agreement shall be construed in
4
<PAGE>
any way as limiting a party's right to enforce the order of priorities of liens
and debts set forth herein as against any person who is not a party to this
Agreement.
8. Subordination Not Affected, Etc. Nothing in this Agreement shall be
construed as affecting or in any way as limiting the extension of new or
additional financial accommodation by Agent to Borrower. Notwithstanding the
preceding sentence or anything contained in this Agreement to the contrary, none
of the provisions of this Agreement shall be deemed or construed to constitute a
commitment or an obligation on the part of Agent to make any future loans,
advances or other extensions of credit or financial accommodation to Borrower.
Creditor understands and agrees that all accrued interest, charges, expenses,
attorneys' fees and other liabilities and obligations under the Notes and the
Loan Agreement shall constitute part of the Senior Debt, and nothing in this
Agreement shall be construed as affecting or in any way as limiting any
indulgence granted by Agent with respect to any existing financial accommodation
to Borrower. The subordinations effected and the rights created hereby shall not
be affected by (a) any amendment of or any addition of or supplement to any
instrument, document or agreement relating to the Senior Debt, (b) any exercise
or non-exercise of any right, power or remedy under or in respect of the Senior
Debt or any instrument, document or agreement relating thereto, (c) the release,
sale, exchange or surrender, in whole or in part, of any part of the Real Estate
or the Mortgaged Property or any additional Mortgaged Property to which Agent
may become entitled, (d) any release of any guarantor of or pledgor securing the
Senior Debt or any security for such pledge or guaranty, or (e) any waiver,
consent, release, indulgence, extension, renewal, modification, delay or other
action, inaction or omission in respect of the Senior Debt or any instrument,
document or agreement relating thereto or any security therefor or pledge or
guaranty thereof, whether or not Creditor shall have had notice or knowledge of
any of the foregoing and regardless of whether Creditor shall have consented or
objected thereto. Any provision of any document, instrument or agreement
evidencing, securing or otherwise relating to the Creditor Debt purporting to
limit or restrict in any way Borrower's ability to enter into any agreement with
Agent to amend or modify any document, instrument or agreement evidencing,
securing or otherwise relating to the Senior Debt shall be deemed void and of no
force or effect until the Senior Debt has been repaid in full in cash or
otherwise satisfied or the Notes have otherwise been terminated.
9. Legend. Creditor will cause all agreements, notes, bonds, debentures
or other instruments from time to time evidencing the Creditor Debt or any part
thereof to contain a specific statement thereon to the effect that the
indebtedness evidenced thereby is subject to the provisions of this Agreement,
and Borrower agrees to the foregoing.
10. Voided Payments. To the extent that Borrower makes any payment on
the Senior Debt which, within TWELVE (12) months after the date of such payment,
is subsequently invalidated, declared to be fraudulent or preferential, set
aside or is required to be repaid to a trustee, receiver or any other party
under any bankruptcy act, state or Federal law, common law or equitable cause
(such payment being hereinafter referred to as a "VOIDED PAYMENT"), then to the
extent of such Voided Payment that portion of the Senior Debt which had been
previously satisfied by such Voided Payment shall be revived and continue in
full force and effect as if such Voided Payment had never been made. In the
event that a Voided Payment is recovered from Agent, an "Event of Default" under
the Loan Agreement shall be deemed to have occurred and to be continuing from
the date of such recovery from Agent of such Voided Payment until the full
amount of such Voided
5
<PAGE>
Payment is fully and finally restored to Agent, and until such time the
provisions of this Agreement shall be in full force and effect.
11. Violation of Agreement by Borrower. Borrower agrees not to make any
payment whatsoever (other than an Allowed Payment) on the Creditor Debt or
consent to or participate in any act which is in violation of the provisions of
this Agreement.
12. Immediate Effect. This Agreement shall be effective immediately
upon its execution by each of the parties hereto, and there are no conditions
precedent or subsequent to the effectiveness of this Agreement.
13. Successors and Assigns; Continuing Effect, Etc. This Agreement is
being made for the benefit of and shall be binding upon each of Agent, Creditor,
Borrower and their respective heirs, executors, personal representatives,
successors and assigns, as applicable. Agent is acting as contractual
representative for itself and the other Lenders who from time to time are
parties to the Loan Agreement, and no such Lenders shall be required to become
signatories hereto. Any assignee or transferee shall execute and deliver to the
other parties hereto an agreement pursuant to which it becomes a party hereto as
fully as if it was a signatory hereto and providing for the effectiveness of
this Agreement as to such transferee or assignee and other parties, and the lien
and debt priority of such assignee or transferee shall be that of his assignor
or transferor. This Agreement shall be a continuing agreement, shall be
irrevocable, and shall remain in full force and effect so long as any of the
Senior Debt is outstanding and so long as the Notes have not been canceled.
14. Notification of Defaults. Each of Agent and Creditor shall give
written notice to the other of a breach, default or event of default by Borrower
under the Senior Debt or the Creditor Debt, respectively; provided, however,
that the failure of Agent to give such notice for any reason whatsoever shall
not be deemed to be a breach of this Agreement, and the failure to give such
notice by Agent or the Creditor shall not affect the effectiveness of any
declaration of such breach, default or event of default by Borrower, as the case
may be. Creditor understands that, subject to any grace or cure period under its
agreements with Borrower, any default by Borrower under the Creditor Debt is,
automatically, a default by Borrower under the Senior Debt. Nothing in this
Agreement shall be interpreted to limit or to restrict the right of Agent and
Creditor to waive any default under their respective documents, and each of
Agent and Creditor agrees that any waiver will be in writing and a copy of such
waiver shall be provided to the other parties hereto.
15. Notices. Any notices, consents, requests, demands and other
communications required or permitted to be given hereunder shall be in writing
and shall be deemed duly given to any party or parties (a) upon delivery to the
address of the party or parties set forth below, if delivered in person or by
courier or if sent by certified or registered mail (return receipt requested),
or (b) upon dispatch, if transmitted by confirmed telecopy or other means of
confirmed facsimile transmission, in any case to the party or parties at the
telecopy numbers set forth below:
6
<PAGE>
If to Agent: FINOVA Capital Corporation
355 South Grand Avenue
Suite 2400
Los Angeles, California 90071
Attn: John Bonano
Telecopy: (213) 625-2486
with a copy to:
FINOVA Capital Corporation
1000 First Avenue, First Floor
King of Prussia, PA 19406
Attn: Francis Monzo (Account Executive)
Telecopy: (610) 354-8476
and an additional copy to:
FINOVA Capital Corporation
1850 North Central Avenue
Phoenix, AZ 85002
Attn: Joseph D'Amore
Telecopy: (602) 207-5036
If to Borrower: USA Detergents, Inc.
1735 Jersey Avenue
North Brunswick, New Jersey 08902
Attn: Richard D. Coslow, CFO
Telecopy: (732) 545-8764
Fulbright & Jaworski, L.L.P.
666 Fifth Avenue
New York, NY 10103
Attn: Sheldon Nussbaum, Esq.
Fax: (212) 752-5958
If to Creditor: 101 Realty Associates, L.L.C.
c/o Netgrocers, Inc.
112 Corporate Road
North Brunswick, New Jersey 08902
Attn: Fred Horwitz
Telecopy: (732) 745-0450
Any party hereto may designate any other address or telecopy number, as
applicable, to which any notices or other communications shall be given by
notice duly given hereunder; provided, however,
7
<PAGE>
that any such notice of other address or telecopy number shall be deemed to have
been given hereunder only when actually received by the party to which it is
addressed.
16. Amendments; Modifications. This Agreement may not be modified,
altered or amended except by an agreement in writing executed by all of the
parties hereto.
17. Amendment of Other Documents. Each of Creditor and Borrower agree
to forbear from modifying, altering or amending any payment amount or payment
term of the Creditor Debt without the prior written consent of Agent.
18. Cost and Expenses of Enforcement. Creditor agrees to pay all costs,
legal expenses and attorneys' and paralegals' fees of every kind paid or
incurred by Agent in enforcing its rights hereunder including, but not limited
to, litigation instituted in a State or Federal Court, as hereinafter provided
(including proceedings under the United States Bankruptcy Code) in enforcing its
rights in connection with Mortgaged Property or the Senior Debt, or in enforcing
this Agreement, or in defending against any defense, cause of action,
counterclaim, set off or cross claim based on any act of commission or omission
by Agent with respect to the Senior Debt or Mortgaged Property promptly on
demand of Agent or other person paying or incurring the same; provided, however,
that in the event of litigation between Agent and Creditor, Agent shall only be
entitled to recover such costs, fees and expenses if it is the prevailing party
in such litigation.
19. TO INDUCE AGENT TO AFFORD FINANCIAL ACCOMMODATIONS TO BORROWER,
CREDITOR IRREVOCABLY AGREES THAT ALL ACTIONS ARISING DIRECTLY OR INDIRECTLY AS A
RESULT OR IN CONSEQUENCE OF THIS AGREEMENT SHALL BE INSTITUTED AND LITIGATED
ONLY IN COURTS HAVING SITUS IN THE COUNTY OF MARICOPA IN THE STATE OF ARIZONA
OR, AT THE SOLE OPTION OF AGENT, IN ANY OTHER COURT IN WHICH AGENT OR ANY LENDER
SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER
JURISDICTION OVER THE MATTER IN CONTROVERSY. CREDITOR HEREBY CONSENTS TO THE
EXCLUSIVE JURISDICTION AND VENUE OF ANY STATE OR FEDERAL COURT LOCATED AND
HAVING ITS SITUS IN SAID COUNTY AND STATE. CREDITOR HEREBY WAIVES ANY OBJECTION
BASED ON FORUM NONCONVENIENS, AND CREDITOR HEREBY WAIVES PERSONAL SERVICE OF ANY
AND ALL PROCESS AND CONSENTS TO SERVICE OF PROCESS BY CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, DIRECTED TO CREDITOR AT THE ADDRESS SET FORTH HEREIN IN THE
MANNER PROVIDED BY APPLICABLE STATUTE, LAW, RULE OF COURT, OR OTHERWISE.
20. CREDITOR WAIVES EVERY DEFENSE, CAUSE OF ACTION, COUNTERCLAIM OR
SETOFF WHICH CREDITOR MAY NOW HAVE, OR HEREAFTER MAY HAVE, TO ANY ACTION BY
AGENT IN ENFORCING THIS AGREEMENT AND RATIFIES AND CONFIRMS WHATEVER AGENT MAY
DO PURSUANT TO THE TERMS HEREOF AND AGREES THAT AGENT SHALL NOT BE LIABLE FOR
ANY ERRORS OF JUDGMENT OR MISTAKE OF FACT OR LAW. AGENT AND CREDITOR AND EACH
ONE OF THEM KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY THE RIGHT
EITHER OR ANY OF THEM MAY HAVE TO TRIAL BY JURY WITH RESPECT
8
<PAGE>
TO ANY LEGAL PROCEEDING BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS AGREEMENT OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION
HEREWITH OR ANY COURSE OF CONDUCT OR COURSE OF DEALING IN WHICH AGENT AND
CREDITOR ARE ADVERSE PARTIES. THIS PROVISION IS A MATERIAL INDUCEMENT TO AGENT
MAKING THE LOAN TO BORROWER.
21. Governing Law; Benefit of Agreement. This Agreement shall be
governed by and construed in accordance with the internal laws (and not the
conflict of laws rules) of the State of Arizona. All of the understandings,
agreements, covenants and representations contained herein are solely for the
benefit of Agent and Creditor, and there are no other persons who are intended
to be benefitted in any way whatsoever by this Agreement.
22. Severability. In the event any one or more of the provisions
contained herein shall for any reason be held to be invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof, and this Agreement shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.
23. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and all of which taken
together shall constitute one and the same instrument.
24. Borrowers' Acknowledgment. Borrower hereby consents to this
Agreement, agrees to abide by the terms hereof, agrees to make no payments or
distributions contrary to the terms and provisions hereof and to do every act
and thing necessary to carry out such terms and provisions.
[SIGNATURE PAGE FOLLOWS]
9
<PAGE>
SUBORDINATION AGREEMENT SIGNATURE PAGE
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.
FINOVA CAPITAL CORPORATION
By: /s/ Ilene M. Gerber
-----------------------------
Its: Vice President
---------------------------
<PAGE>
SUBORDINATION AGREEMENT SIGNATURE PAGE
101 REALTY ASSOCIATES, L.L.C.
By: /s/ Frederick Horowitz
-------------------------------------
Its: Frederick Horowitz, Managing Member
------------------------------------
By: /s/ Daniel Bergman
-------------------------------------
Its: Daniel Bergman, Managing Member
------------------------------------
<PAGE>
SUBORDINATION AGREEMENT SIGNATURE PAGE
USA DETERGENTS, INC.
By: /s/ Uri Evan
--------------------------------
Its: Uri Evan, President & CEO
-------------------------------
By: /s/ Daniel Bergman
--------------------------------
Its: Daniel Bergman, Secretary
-------------------------------
<PAGE>
STATE OF New Jersey )
) SS.
COUNTY OF Middlesex )
I, Toby Leone, a Notary Public in and for said County, in the State
aforesaid, do hereby certify that Ilene Gerber of FINOVA Capital Corporation,
personally known to me to be the same person whose name is subscribed to the
foregoing instrument as such Vice President appeared before me this day in
person and acknowledged that he signed and delivered the said instrument as his
own free and voluntary act and as the free and voluntary act of said
corporation, for the uses and purposes therein set forth.
Given under my hand and notarial seal this 22 day of February, 1999.
Toby Leone
---------------------------------
Notary Public
TOBY LEONE
NOTARY PUBLIC OF NEW JERSEY
MY COMMISSION EXPIRES
MAR. 18, 2001
<PAGE>
STATE OF New Jersey )
) SS.
COUNTY OF Middlesex )
I, Magdalena Juhasz Beigelbeck, a Notary Public in and for said County,
in the State aforesaid, do hereby certify that , Managing Member of 101 Realty
Associates, L.L.C., personally known to me to be the same person whose name is
subscribed to the foregoing instrument as such Managing Member appeared before
me this day in person and acknowledged that he signed and delivered the said
instrument as his own free and voluntary act and as the free and voluntary act
of said company, for the uses and purposes therein set forth.
Given under my hand and notarial seal this 19 day of February, 1999.
Magdalena Juhasz Beigelbeck
---------------------------------
Notary Public
MAGDALENA JUHASZ BEIGELBECK
NOTARY PUBLIC OF NEW JERSEY
MY COMMISSION EXPIRES JUNE 1, 2002
<PAGE>
STATE OF New Jersey )
) SS.
COUNTY OF Middlesex )
I, ________________________, a Notary Public in and for said County, in
the State aforesaid, do hereby certify that Uri Evan the ---- President of USA
Detergents, Inc., a Delaware corporation, personally known to me to be the same
person whose name is subscribed to the foregoing instrument as such President
appeared before me this day in person and acknowledged that he signed and
delivered the said instrument as his own free and voluntary act and as the free
and voluntary act of said corporation, for the uses and purposes therein set
forth.
Given under my hand and notarial seal this 19 day of February, 1999.
/s/ Magdalena Juhasz Beigelbeck
---------------------------------
Notary Public
MAGDALENA JUHASZ BEIGELBECK
NOTARY PUBLIC OF NEW JERSEY
MY COMMISSION EXPIRES JUNE 1, 2002
<PAGE>
LEGAL DESCRIPTION
-----------------
ALL THAT CERTAIN TRACT, PARCEL AND LOT OF LAND LYING AND BEING SITUATE IN THE
TOWNSHIP OF NORTH BRUNSWICK, COUNTY OF MIDDLESEX, STATE OF NEW JERSEY, BEING
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT IN THE SOUTHERLY LINE OF NEW JERSEY STATE HIGHWAY ROUTE #1
(FORMERLY KNOWN AS ROUTE S-26), WHERE THE SAME IS INTERSECTED BY THE EASTERLY
LINE OF LANDS NOW OR FORMERLY OF THE UNITED NEW JERSEY RAILROAD AND CANAL
COMPANY, SAID POINT BEING DISTANT SOUTHEASTERLY 128.92 FEET MEASURED AT RIGHT
ANGLES FROM THE CENTERLINE OF THE FOUR MAIN TRACTS:
1) ALONG SAID LINE OF NEW JERSEY STATE HIGHWAY ROUTE #1, NORTH 76 DEGREES 45
MINUTES 30 SECONDS EAST, 457.01 FEET TO AN ANGLE IN THE SAME; THENCE
2) STILL ALONG THE SAME, NORTH 80 DEGREES 20 MINUTES EAST, 276.38 FEET TO LANDS
NOW OR FORMERLY OF THE TOWNSHIP OF NORTH BRUNSWICK; THENCE
3) ALONG SAID LANDS, SOUTH 9 DEGREES 40 MINUTES EAST, 30.00 FEET TO AN ANGLE IN
THE SAME; THENCE
4) STILL ALONG THE SAME, NORTH 80 DEGREES 20 MINUTES EAST, 30.00 FEET TO AN
ANGLE IN THE SAME; THENCE
5) STILL ALONG THE SAME, NORTH 9 DEGREES 40 MINUTES WEST, 30.00 FEET TO
AFOREMENTIONED LINE OF NEW JERSEY STATE HIGHWAY ROUTE #1; THENCE
6) ALONG SAID LINE OF NEW JERSEY STATE HIGHWAY ROUTE #1, NORTH 80 DEGREES 20
MINUTES EAST, 286.40 FEET TO A POINT OF CURVE IN THE SAME; THENCE
7) STILL ALONG THE SAME EASTERLY ON THE ARC OF A CURVE, CURVING TO THE RIGHT
WITH A RADIUS OF 485.00 FEET FOR AN ARC DISTANCE OF 66.18 FEET TO A POINT OF
COMPOUND CURVE IN THE SAME; THENCE
8) STILL ALONG THE SAME SOUTHEASTERLY ON THE ARC OF A CURVE, CURVING TO THE
RIGHT WITH A RADIUS OF 85.00 FEET FOR AN ARC DISTANCE OF 109.65 FEET TO A POINT
OF TANGENCY IN THE SAME; THENCE
9) STILL ALONG THE SAME, SOUTH 9 DEGREES 42 MINUTES EAST, 30.46 FEET TO AN
ANGLE IN THE SAME; THENCE
16
<PAGE>
10) STILL ALONG THE SAME, NORTH 80 DEGREES 18 MINUTES EAST, 10.07 FEET; THENCE
11) SOUTH 9 DEGREES 32 MINUTES EAST, 190.03 FEET; THENCE
12) NORTH 80 DEGREES 28 MINUTES EAST, 139.93 FEET; THENCE
13) SOUTH 9 DEGREES 32 MINUTES EAST, 721.80 FEET; THENCE
14) SOUTH 80 DEGREES 28 MINUTES WEST, 589.45 FEET; THENCE
15) SOUTH 9 DEGREES 32 MINUTES EAST, 104.00 FEET; THENCE
16) SOUTH 80 DEGREES 28 MINUTES WEST, 95.00 FEET; THENCE
17) SOUTH 9 DEGREES 32 MINUTES EAST, 170.00 FEET; THENCE
18) SOUTH 80 DEGREES 28 MINUTES WEST, 185.00 FEET; THENCE
19) NORTH 9 DEGREES 32 MINUTES WEST, 250.00 FEET; THENCE
20) SOUTH 80 DEGREES 28 MINUTES WEST, 1025.00 FEET; THENCE
21) NORTH 9 DEGREES 32 MINUTES WEST, 75.00 FEET; THENCE
22) SOUTH 80 DEGREES 28 MINUTES WEST, 464.98 FEET TO THE EASTERLY LINE OF LANDS
OF THE UNITED NEW JERSEY RAILROAD AND CANAL COMPANY; THENCE
23) ALONG SAID LANDS, NORTH 37 DEGREES 43 MINUTES 40 SECONDS EAST, 1408.04 FEET
TO THE SOUTHERLY LINE OF NEW JERSEY STATE HIGHWAY ROUTE #1 AND THE POINT OR
PLACE OF BEGINNING.
EXCEPTING THEREFROM THE FOLLOWING DESCRIBED LANDS WHICH HAVE BEEN DEDICATED TO
THE STATE OF NEW JERSEY FOR THE EXTENSION OF LIVINGSTON AVENUE, KNOWN AS PARCEL
4R50A AS SHOWN ON "NEW JERSEY DEPARTMENT OF TRANSPORTATION GENERAL PROPERTY
PARCEL MAP ROUTE U.S. #1, SECTION 5 DEANS ROAD TO ROUTE 26 AND SHOWN EXISTING
RIGHT OF WAY AND PARCELS TO BE ACQUIRED IN THE TOWNSHIP OF SOUTH BRUNSWICK AND
NORTH BRUNSWICK COUNTY OF MIDDLESEX" DATED JUNE, 1988 AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT IN THE SOUTHERLY LINE OF NEW JERSEY STATE HIGHWAY ROUTE #1
THEREIN DISTANT EASTERLY 55.63 FEET FROM THE INTERSECTION OF THE SAME WITH THE
EASTERLY LINE OF LANDS NOW OR
17
<PAGE>
FORMERLY OF THE UNITED NEW JERSEY RAILROAD AND CANAL COMPANY THENCE
1) ALONG SAID LINE OF NEW JERSEY STATE HIGHWAY ROUTE #1, NORTH 76 DEGREES 45
MINUTES 30 SECONDS EAST, 70.69 FEET TO A POINT IN THE NORTHEASTERLY LINE OF
LIVINGSTON AVENUE EXTENSION, THENCE
2) ALONG SAID LINE OF LIVINGSTON EXTENSION SOUTHEASTERLY ON THE ARC OF A CURVE,
CURVING TO THE LEFT WITH A RADIUS OF 175.00 FEET FOR AN ARC DISTANCE OF 210.62
FEET TO A POINT OF TANGENCY IN THE SAME; THENCE
3) STILL ALONG THE SAME, NORTH 88 DEGREES 11 MINUTES 42 SECONDS EAST, 919.99
FEET TO LANDS NOW OR FORMERLY OF THE STATE OF NEW JERSEY, THENCE
4) ALONG SAID LANDS, SOUTH 9 DEGREES 32 MINUTES EAST, 36.18 FEET TO AN ANGLE IN
THE SAME; THENCE
5) STILL ALONG THE SAME NORTH 80 DEGREES 28 MINUTES EAST, 139.93 FEET TO LANDS
NOW OR FORMERLY OF NORTH BRUNSWICK MANOR; THENCE
6) ALONG SAID LANDS, SOUTH 9 DEGREES 32 MINUTES EAST, 50.41 FEET TO THE
SOUTHWESTERLY LINE OF LIVINGSTON AVENUE EXTENSION; THENCE
7) ALONG SAID LINE OF LIVINGSTON AVENUE EXTENSION WESTERLY ON THE ARC OF A
CURVE, CURVING TO THE RIGHT WITH A RADIUS OF 335.00 FEET FOR AN ARC DISTANCE OF
44.93 FEET TO A POINT OF TANGENCY IN THE SAME; THENCE
8) STILL ALONG THE SAME, SOUTH 88 DEGREES 11 MINUTES 42 SECONDS WEST, 1025.50
FEET TO A POINT OF CURVE IN THE SAME; THENCE
9) STILL ALONG THE SAME, NORTHWESTERLY ON THE ARC OF A CURVE, CURVING TO THE
RIGHT WITH A RADIUS OF 245.00 FEET FOR AN ARC DISTANCE OF 306.67 FEET TO THE
SOUTHERLY LINE OF NEW JERSEY STATE HIGHWAY ROUTE #1 AND THE POINT OR PLACE OF
BEGINNING.
THE ABOVE DESCRIPTION IS DRAWN IN ACCORDANCE WITH A SURVEY PREPARED BY CASEY &
KELLER DATED FEBRUARY 3, 1997.
BEING ALSO KNOWN AS (REPORTED FOR INFORMATIONAL PURPOSES ONLY):
LOT 18.3, BLOCK 143, ON THE OFFICIAL TAX MAP OF THE TOWNSHIP OF NORTH BRUNSWICK
IN MIDDLESEX COUNTY.
BEING MORE COMMONLY KNOWN AS 1600 ROUTE 1 NORTH.
18
<PAGE>
Address: 1600 U.S. Route 1 North
North Brunswick, New Jersey
Block 143, Lot 18.3 on the Tax Map of the Township of
North Brunswick, County of Middlesex and State of New Jersey
19
<PAGE>
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE
CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND ARE DENOTED BY [*]. THE
CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.
USA DETERGENTS/OWENS-BROCKWAY PLASTICS
WEST COAST SUPPLY AGREEMENT
USA Detergents and Owens-Brockway Plastic Products will enter into an agreement
to have USA Detergents lease BC-3 machine on the West Coast and Owens-Brockway
install an agreed-upon number of machines to supply [*] of USA Detergents DBS
package requirements.
BC-3Y DBS INITIATIVE FOR THE WEST COAST:
Owens-Brockway will initially install for USA Detergents [*] machine to
supply the USA Detergents West Coast operations (or contract filler).
1. PRICE:
o USA Detergents will commit for a minimum 5 years, commencing
March 1, 1996 thru February 28, 2001, to lease the use of
dedicated machines per the following schedule:
TIMING LEASE/BUY CONVERSION VALUE
- ------ --------- ----------------
XTRA NICE N FLUFFY
---- -------------
Machine #1
March 1, 1996 [*] [*] [*]
December 1, 1996 [*] [*] [*]
Machine #2 [*] [*] [*]
Machine #3 [*] [*] [*]
Machine #4 [*] [*] [*]
Cup [*]
Label per price schedule
o Pricing for machine start up period March 1, 1996 to December
1, 1996, will be at the implied lease pricing plus conversion
value [*] and purchased on a bottles per thousand basis per
schedule 1 attached.
<PAGE>
West Coast Supply Agreement
Page 2
2. TERMS:
Commencing March 1, 1996, and concluding February 28, 2001. Renewable
for consecutive four-year periods upon mutual written agreement by both
parties. Upon termination after initial five-year period or four-year
extension periods.
3. F.O.B. POINT:
[*] shipments will be plant of manufacture with no freight prepaid or
absorbed.
4. Due to warehousing constraints in Owens-Brockway's La Mirada plant, all
bottles will be make and ship.
5. With above noted exceptions, all other terms and conditions of our
supply agreement of November 29, 1994, will apply.
USA DETERGENTS OWENS-BROCKWAY PLASTICS
Accepted by /s/ Frank Valdez Accepted by /s/ David L. Andrulonis
------------------ -----------------------
Title President and COO Title V.P. Sales Manager
------------------------- -----------------------------
Date December 7, 1995 Date November 17, 1995
------------------------- ------------------------------
<PAGE>
Schedule 1
WEST COAST START-UP PRICING
MOLD 2435, X-TRA GALLON/WHITE
<TABLE>
<CAPTION>
<S> <C> <C>
West Coast [*]
[*]
Lease/Year/Machine [*]
Lease/Day (340 Days) [*]
Estimated Pcs/Day [*]
Annual Capacity/Mach [*] West Coast Proposal Assumptions:
Bottle Weight [*]
Spout Weight [*] - Minimum five (5) year commitment from startup.
Bottle (Conv) 10/6 (White) [*] - Inflation escalators consistent with current contract.
"Implied" Lease/M [*]
Total Bottle [*]
Spout [*] - Inventory will be make and ship due to warehouse
Total Spouted Bottle [*] constraints.
* Bottle conversion price on yellow would be [*]
MOLD 21180, NICE 'N FLUFFY GALLON/BLUE
West Coast [*]
[*]
Lease/Year/Machine [*]
Lease/Day (340 Days) [*]
Estimated Pcs/Day [*]
Annual Capacity/Mach [*] West Coast Proposal Assumptions:
Bottle Weight [*]
Spout Weight [*] - Minimum five (5) year commitment from startup.
Bottle (Conv) 10/6 (Blue) [*] - Inflation escalators consistent with current contract.
"Implied" Lease/M [*]
Total Bottle [*]
Spout [*] - Inventory will be make and ship due to warehouse
Total Spouted Bottle [*] constraints.
* Bottle conversion price on green would be [*]
</TABLE>
<PAGE>
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE
CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND ARE DENOTED BY [*]. THE
CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.
KANSAS CITY / HARRISONVILLE, MO
SUPPLY AGREEMENT
THIS SUPPLY AGREEMENT ("Agreement") is entered into as of
December 18, 1996 by and between OWENS-BROCKWAY PLASTIC PRODUCTS INC., a
Delaware corporation, ("Owens") and USA DETERGENTS, INC., a[n] _____________
corporation ("USA").
NOW THEREFORE, in consideration of the mutual covenants and
agreement set forth herein, the parties hereto covenant and agree to as follows:
ARTICLE I
PRODUCTS AND SERVICES
Subject to the terms and conditions set forth herein, Owens
agrees to manufacture and make available to USA drainback spout ("DBS") type
bottles for use in USA's Harrisonville, Missouri fill plant (the "Facility") and
USA agrees to purchase from Owens [*] of the Facility's requirements for DBS
type bottles (sometimes referred to as "USA's DBS Package Requirements" or
"Bottles"). All Bottles shall be stack packed in 30-pack transfer cartons
provided by USA or other packing material as agreed to by the parties. The DBS
Package is defined as a bottle, cup and spout all supplied by Owens.
ARTICLE II
OWENS KANSAS CITY PRODUCTION
SECTION 2.1 SUPPLY TERM. The parties hereto agree that
commencing April 30, 1997, and concluding November 30, 2002 (the "Initial
Term"), Owens shall supply USA's DBS Package Requirements in whole pursuant to
the terms and conditions of this Article II. At the end of the Initial Term,
this Agreement shall automatically renew for [*] period unless either party
gives the other party one hundred and eighty (180) days advance written notice
prior to the expiration of the Initial Term, of its intent not to renew this
Agreement. In the event USA elects not to renew the term of this Agreement, such
election shall not be effective unless prior to the expiration of the Initial
Term USA makes a payment to Owens in the amount of [*] to partially offset
relocation cost of this specialized equipment, unless equivalent business can be
secured by Owens from USA or another customer during the final 180 days of the
term of the Agreement. Upon renewal and completion of the second term of this
agreement, the [*] payment liability expires. In the event additional machines
beyond the [*] machines are dedicated pursuant to Section 2.7, the parties agree
to a one year extension to the term of this Agreement for each machine that is
added.
<PAGE>
SECTION 2.2 PLACEMENT AND DEDICATION OF MACHINE. On or before
April 30, 1997 Owens shall install at its Kansas City, Missouri facility (the
"Facility") [*] machine solely dedicated to manufacturing USA's DBS Package
Requirements. Prior to September 30, 1997, Owens shall add a second RSW wheel
machine, and a third RSW wheel machine with the estimated timing of fourth
quarter 1997 / First quarter 1998 dependent on USA Detergents product demand.
The dedicated RSW wheel machines described in this Section 2.2 shall be referred
to in the singular as the "Dedicated Machine" or collectively as the "Dedicated
Machines".
SECTION 2.3 MACHINE COMMITMENT FEE. The annual fee for each
Dedicated Machine is set forth on attached Schedule "A" ("Machine Fee"). USA
shall be billed the monthly Machine Fee on the first of each month beginning
April 30, 1997 for each Dedicated Machine in service. Payments shall be due and
payable by the 10th day of the month. After March 31, 1998 the Machine Fee may
be increased by a maximum of [*] once each contract year, provided that ninety
(90) days advance written notification has been given and reasonable
justification has been provided.
SECTION 2.4 CONVERSION PRICES. The conversion price for USA's
Bottles is set forth on attached Schedule "A" ("Conversion Price"). The
Conversion Price, exclusive of the cost of resin which is addressed in Section
2.5 below, shall be considered firm through March 31, 1998. After March 31,
1998, Bottle prices may be increased by [*] once each contract year, exclusive
of resin, provided that ninety (90) days advance written notification has been
given and reasonable justification has been provided. Pricing assumes that all
regrind is reusable in Bottles.
SECTION 2.5 RESIN COST ADJUSTMENT. Prices for Bottles are
based on resin prices as of July 15, 1996. Prices for resin are subject to
change with thirty (30) days advance written notice. For each [*] change in
Owens' cost of resin, selling prices for Bottles will be adjusted up or down at
the rate of [*] Bottles. Pricing index will be based on Chem Data.
SECTION 2.6 F.O.B. POINT AND BILLING. DBS Package Requirements
supplied pursuant to this Article II shall be F.O.B. [*].
SECTION 2.7 ADDITIONAL MACHINES. Additional machines may be
dedicated to production of USA's DBS Package Requirements upon mutual written
agreement by the parties hereto.
ARTICLE III
MISCELLANEOUS
The terms and conditions of this Article III shall apply to
all transactions undertaken pursuant to this Agreement.
SECTION 3.1 PRODUCTION CAPACITY. Each Dedicated Machine is
scheduled to operate a minimum of [*] machine operating days ("MOD's") annually.
This schedule takes into account holidays, preventive maintenance, production
downtime, etc. If USA needs Owens to
2
<PAGE>
manufacture on any holiday, USA will be responsible for all incremental costs
incurred, including incremental time. This cost will be negotiated between USA
and Owens. USA will be responsible for all additional cash or variable costs.
SECTION 3.2 TERMS OF PAYMENT. Except as otherwise set forth
herein, payment under this Agreement shall be [*] days from the date of invoice.
At Owens' sole discretion, interest may be charged for late payments in
accordance with Owens' standard terms and conditions of sale described in
Section 4.12 below.
SECTION 3.3 SURGE CAPACITY/OPTION FOR ADDITIONAL DEDICATED
MACHINES. Since USA agrees to purchase [*] of their DBS Package Requirements
from Owens, Owens recognizes the need to provide USA with additional capacity
for temporary business surges that exceed the production output of the Dedicated
Machines as set forth above. The bottles would be priced at the non-machine fee
price and sold F.O.B. plant of manufacture.
A Owens also recognizes that USA may desire additional dedicated bottle
machines to support its anticipated growth objectives. In that regard, Owens
will use its best effort to obtain the necessary expansion capital to support
USA's anticipated growth objectives, provided that USA will make firm long-term
commitment to purchase that equivalent output from that Dedicated Machines to
justify the investment. If Owens decides not to add capacity for USA, USA shall
be able to move bottle requirements exceeding the existing Dedicated Machine
capacity at the time to induce another supplier to service USA's bottle demand.
If Owens decides not to add capacity for USA Detergents, the [*] payment in
Section 2.1 would be waived.
SECTION 3.4 FORCE MAJEURE. In the event of a force majeure
condition affecting either party due to circumstances beyond either party's
control which restricts or affects the performance of this agreement, Owens and
USA, as the case may be, shall undertake its best efforts to remedy the
situation by removing the cause of the problem. Such effort shall, however, not
include the settlement of a strike or labor controversy by acceding to the
demand(s) of the opposing party or parties. Where production is temporarily
stopped, impeded, or reduced by a process or mold condition, Owens shall extend
its best effort to make available production at an alternate facility, but such
effort shall not be at the exclusion of Owens' or other DBS customers. Likewise,
USA shall undertake its best efforts to resume full production as soon as
possible. In either case, neither party will suffer at the expense of the other.
Also, it is understood that a force majeure condition shall not excuse the
payment of any outstanding billings for any packaging components due Owens. In
the event of a strike, Owens will use its best efforts to fulfill its
obligations under this Agreement during a work stoppage if one should occur.
SECTION 3.5 PRODUCTIVITY IMPROVEMENT/COST REDUCTIONS. Both
Owens and USA agree that the success of the parties' mutual objectives depends
upon continuing to improve the efficiency of the DBS package system and the use
of the system by USA.
3
<PAGE>
SECTION 3.6 CONDITIONS OF SALE. Except as inconsistent
herewith, all Owens' standard terms and conditions of sale under which business
is conducted shall apply, as set forth in Owens' order acknowledgment sent to
USA from time to time.
SECTION 3.7 TERMINATION. This Agreement may be terminated by
either party for material breach of the other party if such breach remains
uncured for a period of [*] after receipt of written notification from the party
alleging such breach.
SECTION 3.8 NOTICES. All notices or other communications
required or permitted under this Agreement shall be in writing and shall be sent
either (a) through the United States Postage Service, designated as registered
or certified mail, return receipt requested and bearing adequate postage, (b) by
means of an express delivery service if it obtains a written receipt to confirm
delivery, (c) by hand delivery or (d) by facsimile transmission. Each such
notice shall be effective upon the receipt thereof by the addressee. Rejection
or refusal to accept or inability to deliver because of change of address of
which no notice was given as provided herein shall be deemed to be receipt of
the notice sent. By giving the other parties hereto at least seven (7) days
notice thereof, any party hereto shall have the right from time to time and at
any time while this Agreement is in effect to change its address for purposes of
this Section 5.14, and each party shall have the right to specify as its address
any other address within the continental United States of America.
Each notice or other communication shall be addressed, until notice of change of
address as aforesaid, as follows:
Owens: Owens-Brockway Plastic Products Inc.
One SeaGate
Toledo, Ohio 43666
Attn: General Manager of Plastic Products
Fax # 419-247-8304
with copy to:
Owens-Illinois, Inc.
Legal Department
One SeaGate
Toledo, Ohio 43666
Attn: General Counsel
Fax # (419) 247-1463
Vendor: U.S.A. Detergents, Inc.
1735 Jersey Avenue
North Brunswick, New Jersey 08902
Attn: Executive Vice President
Fax # 908-246-8833
4
<PAGE>
SECTION 3.9 ASSIGNABILITY. [*].
SECTION 3.10 ARBITRATION. Any dispute, which can not be
resolved through negotiations at the vice-president level, shall be finally
resolved through arbitration in Chicago, Illinois under the rules of the
American Arbitration Association. A written demand by either party shall be
sufficient to initiate such proceedings.
SECTION 3.11 [*].
IN WITNESS WHEREOF, each of the parties hereto have caused
this Agreement to be duly executed as of the day and year first above written.
<TABLE>
<CAPTION>
OWENS-BROCKWAY PLASTIC USA DETERGENTS, INC.
PRODUCTS INC.
<S> <C>
By: /s/ David L. Andrulonis 12/12/96 By: /s/ Frank Valdez
-------------------------------------------- --------------------------------------------
Title: V.P. and General Sales Manager Title: President and COO
-------------------------------------------- --------------------------------------------
Date: December 13, 1996 Date: December 18, 1996
-------------------------------------------- --------------------------------------------
</TABLE>
5
<PAGE>
SCHEDULE A - PAGE 1
PRICE SCHEDULE FOR OWENS-BROCKWAY KANSAS CITY OPTION
[*]
KANSAS CITY PLANT
NICE N FLUFFY XTRA
------------- -----
Machine Fee / Year [*] [*] [*] [*]
MACHINE FEE / MONTH [*] [*] [*] [*]
Machine Fee / Day [*] [*] [*] [*] [*]
Estimated Pcs / Day [*] [*] [*] [*]
Annual Capacity / Machine [*] [*] [*] [*]
Bottle Weight [*] [*] [*] [*]
Color [*] [*] [*] [*]
Bottle Conversion [*] [*] [*] [*]
Spout [*] [*] [*] [*]
Unitizing [*] [*] [*] [*]
SPOUTED BOTTLE CONVERSION [*] [*] [*] [*]
"CONVERSION PRICE"
Implied Machine Fee [*] [*] [*] [*]
Total Bottle [*] [*] [*] [*]
Includes spout unitizing, resin effective 7/15/96.
* Subject to resin cost adjustments set forth in Section 2.5 and annual
increases occurring after [*] set forth in Section 2.3 and Section 2.4.
[*] [*] [*] [*]
1
<PAGE>
SCHEDULE A - PAGE 2
PRICE SCHEDULE FOR OWENS-BROCKWAY KANSAS CITY OPTION
[*]
KANSAS CITY PLANT
NICE N FLUFFY XTRA
------------- -----
Machine Fee / Year [*] [*] [*] [*]
MACHINE FEE / MONTH [*] [*] [*] [*]
Machine Fee / Day [*] [*] [*] [*] [*]
Estimated Pcs / Day [*] [*] [*] [*]
Annual Capacity / Machine [*] [*] [*] [*]
Bottle Weight [*] [*] [*] [*]
Color [*] [*] [*] [*]
Bottle Conversion [*] [*] [*] [*]
Spout [*] [*] [*] [*]
Unitizing [*] [*] [*] [*]
SPOUTED BOTTLE CONVERSION [*] [*] [*] [*]
"CONVERSION PRICE"
Implied Machine Fee [*] [*] [*] [*]
Total Bottle [*] [*] [*] [*]
Includes spout unitizing, resin effective 7/15/96.
* Subject to resin cost adjustments set forth in Section 2.5 and annual
increases occurring after [*] set forth in Section 2.3 and Section 2.4.
[*] [*] [*] [*]
2
<PAGE>
KANSAS CITY PACKOUT - RAMP UP SCHEDULE
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
[*] [*] [*] [*] [*] [*]
- -------------------------------------------------------------------------------
Difference between [*] and [*]
1. Impact of Layoff and Job Restructuring initially.
2. [*] - Start-up and Debug vs. Existing Machine Conversion.
3. Possible Color Changes / SKU Changes vs. [*].
3
<PAGE>
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE
CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND ARE DENOTED BY [*]. THE
CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.
AN AMENDMENT TO THE LABEL SUPPLY AGREEMENT BETWEEN
OWENS-ILLINOIS LABELS, INC. AND USA DETERGENTS
WHICH WAS EFFECTIVE JANUARY 1, 1997.
Owens-Illinois Labels, Inc. will:
1. Amend its current price list per attachment.
2. Award an additional [*] for all labels purchased as listed below. [*]
3. Attach the label supply agreement as an amendment to the
Owens-Brockway Plastics Supply Agreement dated November 29, 1994.
USA Detergents in consideration of this amendment will:
1. Assure that all label types and sizes listed in the original Label
Supply Agreement will be supplied by Owens-Illinois Labels, Inc.
including any labels currently placed with competition.
2. Give a [*] commitment for Owens-Illinois Labels, Inc. to provide [*]
of its powdered detergent scoop requirements. Proposal Attached.
Labels (all designs and sizes) subject to [*] performance price rebate:
[*]
<TABLE>
<CAPTION>
<S> <C>
Owens-Illinois Labels Inc. USA Detergents Inc.
By /s/ David L. Andrulonis By /s/ Dan Parker
---------------------------------------- ---------------------------------------
Title V.P. Sales and Business Unit Manager Title Vice President Materials Management
------------------------------------- -----------------------------------
</TABLE>
<PAGE>
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE
CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND ARE DENOTED BY [*]. THE
CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.
O-I CONFIDENTIAL
OWENS-ILLINOIS CLOSURE, INC.
&
USA DETERGENTS, INC.
TRIGGER SPRAYER SUPPLY AGREEMENT
This SUPPLY AGREEMENT dated May 29, 1997, is made and entered into by
and between USA Detergents, Inc. and Owens-Illinois Closure Inc.
("Owens-Brockway") with a mailing address of One SeaGate, 29 LDP, Toledo, Ohio
43666, Attention David Andrulonis.
STANDARD 0188 TRIGGER SPRAYER
Includes polyethylene nozzle cup, 302ss Spring and Ball, foamed polyethylene
liner, spray/stream/off nozzle, and 28/400 closure. Components in standard USA
Detergents, Inc. color combinations.
QUANTITIES
[*] Supply Agreement [*].
TERM OF AGREEMENT
The term of this Supply Agreement shall be from July 1, 1997 through January 31,
2001.
[*]
RESIN PRICE ADJUSTMENT
[*].
CONSIDERATION
In Consideration for [*] Supply Agreement, Owens-Illinois Inc. will provide [*]
for all USA Detergents [*] purchases. This price reduction will take effect once
[*] shipments begin [*] and continue until the end of this agreement while all
conditions are met.
OPTIONS
Features and upgrades will be quoted separately and added to the above base
prices as appropriate.
TERMS
[*].
Freight - Delivered to North Brunswick, N.J. 08902-1469.
<TABLE>
<CAPTION>
<S> <C>
USA DETERGENTS INC. OWENS-ILLINOIS CLOSURE INC.
BY: /S/ DAN PARKER BY: /S/ DAVID L. ANDRULONIS
----------------------------------- -----------------------------------
TITLE: VP - MATERIALS MANAGEMENT TITLE: VP BUSINESS UNIT MANAGER
----------------------------------- -----------------------------------
DATE: JULY 22, 1997 DATE: JULY 23, 1997
----------------------------------- -----------------------------------
</TABLE>
<PAGE>
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE
CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND ARE DENOTED BY [*]. THE
CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.
SUPPLY AGREEMENT
BETWEEN
OWENS-ILLINOIS LABELS INC.
AND
USA DETERGENTS, INC.
"SCOOPS FOR POWDERED SOAP PRODUCTS"
I. SCOPE
USA DETERGENTS, INC. ("Purchaser") agrees to purchase from
OWENS-ILLINOIS LABELS INC. ("Seller"), and Seller agrees to supply, [*]
of Purchaser's requirements for scoops used in Purchaser's powdered
soap product packages during the [*] which shall commence upon the
Seller's installation date of the production tooling required to
manufacture the scoops, which is estimated to be within [*] of the date
of the acceptance of this agreement by Purchaser. Seller's offer to
supply scoops is contingent upon Seller's determination that producing
such scoops shall not violate any patents that may currently exist.
II. PRODUCT
Included in Purchaser's current requirements are two sizes of scoops,
based on volumetric capacity: [*]. Scoops to be produced by Seller
shall have essentially the same "footprint" dimensions and be otherwise
materially similar to the samples submitted to Seller by Purchaser:
Scoop dimensions: top opening - approx. 2 1/2" X 2 3/4"
handle length - approx. 2 1/2"
height - appropriate to accommodate
volumetric capacity.
Material: Polystyrene
III. TOOLING
Seller shall, at Seller's expense, purchase the tooling necessary to
produce the Purchaser's requirements for scoops based on Purchaser's
commitment to purchase [*].
IV. PRICING
Purchaser agrees to pay the following prices to Seller:
[*]
[*]
[*]
[*]
[*]
[*].
July 15, 1997
<PAGE>
OWENS-ILLINOIS LABELS & CARRIERS, INC.
EXHIBIT A
SUPPLY AGREEMENT
OWENS-ILLINOIS LABELS INC.
USA DETERGENTS, INC.
CURRENT LIST -- QUALIFIED LABELS
(A) 24 oz. Super Scrub - All designs
(B) 22 oz. Trigger - All "Speedway" designs
All "Fabulous" designs
XTRA EZ Stain Remover
(C) 32 oz. Citation - "Plumber's Aid" design
(D) 32 oz. Fine Care - All designs
(E) 80 oz. Gel - All designs of same size
(F) 64 oz. XTRA - All designs of same size
(G) 64 oz. NNF - All designs of same size
(H) 100 oz. - All designs of same size
(I) 128 oz. XTRA - All designs of same size
(J) 128 oz. NNF - All designs of same size
(K) 120 oz. NNF - All designs
(L) 192 oz. XTRA & NNF - All designs
<PAGE>
OWENS-ILLINOIS LABELS & CARRIERS, INC.
EXHIBIT B
SUPPLY AGREEMENT
OWENS-ILLINOIS LABELS INC.
USA DETERGENTS, INC.
PRICE LISTS
---- PRICE LISTS FOR INDIVIDUAL ITEMS ----
---- FOLLOWING TEN (10) PAGES ----
<PAGE>
OWENS-ILLINOIS LABELS INC.
PRICE LIST
Effective-7/1/97
USA DETERGENTS ULTRA 60 OZ.
<TABLE>
<CAPTION>
- ---------------------------------------------------- --------------------------------
Standard Opacity Standard Overgloss
- ---------------------------------------------------- --------------------------------
- ----------------------------------------------------
Based on Estimated Sizes Unless Template # is Shown Front Back
VIM146 VIM146
- ----------------------------------------------------
<S> <C> <C> <C> <C>
Template Mold Width 4.089 4.089
Height 5.729 5.729
- -----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
[*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
M "SETS" Price/M "SETS" Price/M "FRONTS" Price/M "BACKS"
[*] [*] [*] [*]
[*] [*] [*] [*]
</TABLE>
PREP AND ART COSTS BASED ON ART SUPPLIED ORDERS SUBJECT TO +/- 10% OVER/UNDERRUN
LABELS MANUFACTURED MAKE AND SHIP TERMS: NET 30 DAYS - FOB BARDSTOWN KY.
PRICE BASED UPON STANDARD INKS (EXCLUDES FLUORESCENTS & METALLICS)
PRODUCTION DIE SET: [*]
- -------------------------------------------
- -------------------------------------------
cc:
Adrian Seguiti
6/13/97 829 B A
<PAGE>
OWENS-ILLINOIS LABELS INC.
PRICE LIST
Effective-7/1/97
USA DETERGENTS NICE'N FLUFFY 60 OZ.
<TABLE>
<CAPTION>
- ---------------------------------------------------- --------------------------------
Standard Opacity Standard Overgloss
- ---------------------------------------------------- --------------------------------
- ----------------------------------------------------
Based on Estimated Sizes Unless Template # is Shown Front Back
VIM229W VIM229W
- ----------------------------------------------------
<S> <C> <C> <C> <C>
Template B-B-21414-004 Mold 21414 Width 5.580 5.580
B-B-21414-004 21414 Height 6.078 6.078
- -----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
[*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
M "SETS" Price/M "SETS" Price/M "FRONTS" Price/M "BACKS"
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
</TABLE>
PREP AND ART COSTS BASED ON ART SUPPLIED ORDERS SUBJECT TO +/- 10% OVER/UNDERRUN
LABELS MANUFACTURED MAKE AND SHIP TERMS: NET 30 DAYS - FOB BARDSTOWN KY.
PRICE BASED UPON STANDARD INKS (EXCLUDES FLUORESCENTS & METALLICS)
PRODUCTION DIE SET: [*]
- -------------------------------------------
- -------------------------------------------
cc:
Adrian Seguiti
6/13/97 843 B A
<PAGE>
OWENS-ILLINOIS LABELS INC.
PRICE LIST
Effective-7/1/97
USA DETERGENTS 100 OZ.
<TABLE>
<CAPTION>
- ---------------------------------------------------- --------------------------------
Standard Opacity Standard Overgloss
- ---------------------------------------------------- --------------------------------
- ----------------------------------------------------
Based on Estimated Sizes Unless Template # is Shown Front Back
IM220 IM220
- ----------------------------------------------------
<S> <C> <C> <C> <C>
Template A-B-21391-002 rev B Mold 21391 Width 6.896 6.896
A-B-21391-002 rev B 21391 Height 5.320 5.320
- -----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
[*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
M "SETS" Price/M "SETS" Price/M "FRONTS" Price/M "BACKS"
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
[*] [*] [*] [*]
</TABLE>
ESCALATOR
PREP AND ART COSTS BASED ON ART SUPPLIED ORDERS SUBJECT TO +/- 10% OVER/UNDERRUN
LABELS MANUFACTURED MAKE AND SHIP TERMS: NET 30 DAYS - FOB BARDSTOWN KY.
PRICE BASED UPON STANDARD INKS (EXCLUDES FLUORESCENTS & METALLICS)
PRODUCTION DIE SET: [*]
- -------------------------------------------
- -------------------------------------------
cc:
Adrian Seguiti
6/13/97 816 B A
<PAGE>
OWENS-ILLINOIS LABELS INC.
PRICE LIST
Effective-7/1/97
USA DETERGENTS NICE N'FLUFFY 128 OZ.
<TABLE>
<CAPTION>
- ---------------------------------------------------- --------------------------------
Standard Opacity Standard Overgloss
- ---------------------------------------------------- --------------------------------
- ----------------------------------------------------
Based on Estimated Sizes Unless Template # is Shown Front Back
VIM208W VIM208W
- ----------------------------------------------------
<S> <C> <C> <C> <C>
Template Mold Width 7.728 7.728
Height 7.286 7.286
- -----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
[*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
M "SETS" Price/M "SETS" Price/M "FRONTS" Price/M "BACKS"
[*] [*] [*] [*]
</TABLE>
ESCALATOR
SINGLE PRICE FOR ANY ORDER QTY. OF AT LEAST 250M SETS. BASED ON ANNUAL MINIMUM
PURCHASES OF 20,000M SETS OF THIS SIZE
PREP AND ART COSTS BASED ON ART SUPPLIED ORDERS SUBJECT TO +/- 10% OVER/UNDERRUN
LABELS MANUFACTURED MAKE AND SHIP TERMS: NET 30 DAYS - FOB BARDSTOWN KY.
PRICE BASED UPON STANDARD INKS (EXCLUDES FLUORESCENTS & METALLICS)
PRODUCTION DIE SET: [*]
- -------------------------------------------
- -------------------------------------------
cc: Hal McDonald - Saddlebrook PPD, Yvonne Jogodzinski - 29L Pp
Adrian Seguiti
6/13/97 771 B A
<PAGE>
OWENS-ILLINOIS LABELS INC.
PRICE LIST
Effective-7/1/97
USA DETERGENTS LAUNDRY BR/SFT, SMART CNTS, XTRA 1 GAL DBS
<TABLE>
<CAPTION>
- ---------------------------------------------------- --------------------------------
Standard Opacity Standard Overgloss
- ---------------------------------------------------- --------------------------------
- ----------------------------------------------------
Based on Estimated Sizes Unless Template # is Shown Front Back
VIM158W VIM158W
- ----------------------------------------------------
<S> <C> <C> <C> <C>
Template B-BC-1-7360 rev. Mold 2435 Width 6.500 6.500
B-BC-1-7360 rev. 2435 Height 7.852 7.852
- -----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
[*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
M "SETS" Price/M "SETS" Price/M "FRONTS" Price/M "BACKS"
[*] [*] [*] [*]
</TABLE>
ESCALATOR
SINGLE PRICE FOR ANY ORDER QTY. OF AT LEAST 250M SETS. BASED ON ANNUAL MINIMUM
PURCHASES OF 40,000M SETS OF THIS SIZE
PREP AND ART COSTS BASED ON ART SUPPLIED ORDERS SUBJECT TO +/- 10% OVER/UNDERRUN
LABELS MANUFACTURED MAKE AND SHIP TERMS: NET 30 DAYS - FOB BARDSTOWN KY.
PRICE BASED UPON STANDARD INKS (EXCLUDES FLUORESCENTS & METALLICS)
PRODUCTION DIE SET: [*]
- -------------------------------------------
- -------------------------------------------
cc: Hal McDonald - Saddlebrook PPD, Yvonne Jogodzinski - 29L Pp
Adrian Seguiti
6/13/97 770 B A
<PAGE>
OWENS-ILLINOIS LABELS INC.
PRICE LIST
Effective-7/1/97
USA DETERGENTS NICE N'FLUFFY 64 OZ.
<TABLE>
<CAPTION>
- ---------------------------------------------------- --------------------------------
Standard Opacity Standard Overgloss
- ---------------------------------------------------- --------------------------------
- ----------------------------------------------------
Based on Estimated Sizes Unless Template # is Shown Front Back
VIM171 VIM171
- ----------------------------------------------------
<S> <C> <C> <C> <C>
Template Mold Width 5.534 5.534
Height 5.963 5.963
- -----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
[*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
M "SETS" Price/M "SETS" Price/M "FRONTS" Price/M "BACKS"
[*] [*] [*] [*]
[*] [*] [*] [*]
</TABLE>
ESCALATOR
NORMAL ORDERS SHOULD BE EITHER 500M SETS OR 1,000M SETS LEVELS. ORDERS BELOW
THESE LEVELS ARE THE EXCEPTION: [*]
PREP AND ART COSTS BASED ON ART SUPPLIED ORDERS SUBJECT TO +/- 10% OVER/UNDERRUN
LABELS MANUFACTURED MAKE AND SHIP TERMS: NET 30 DAYS - FOB BARDSTOWN KY.
PRICE BASED UPON STANDARD INKS (EXCLUDES FLUORESCENTS & METALLICS)
PRODUCTION DIE SET: [*]
- -------------------------------------------
- -------------------------------------------
cc: Hal McDonald - Saddlebrook PPD, Yvonne Jogodzinski - 29L Pp
Adrian Seguiti
6/13/97 488 B A
<PAGE>
OWENS-ILLINOIS LABELS INC.
PRICE LIST
Effective-7/1/97
USA DETERGENTS XTRA 64 OZ.
<TABLE>
<CAPTION>
- ---------------------------------------------------- --------------------------------
Standard Opacity Standard Overgloss
- ---------------------------------------------------- --------------------------------
- ----------------------------------------------------
Based on Estimated Sizes Unless Template # is Shown Front Back
VIM028 VIM028
- ----------------------------------------------------
<S> <C> <C> <C> <C>
Template A-BC-1-6956 Mold 3B-2379 Width 5.750 5.750
A-BC-1-6956 3B-2379 Height 6.500 6.500
- -----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
[*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
M "SETS" Price/M "SETS" Price/M "FRONTS" Price/M "BACKS"
[*] [*] [*] [*]
[*] [*] [*] [*]
</TABLE>
ESCALATOR
NORMAL ORDERS SHOULD BE EITHER 500M SETS OR 1,000M SETS LEVELS.
ORDERS BELOW THESE LEVELS ARE THE EXCEPTION:[*]
PREP AND ART COSTS BASED ON ART SUPPLIED ORDERS SUBJECT TO +/- 10% OVER/UNDERRUN
LABELS MANUFACTURED MAKE AND SHIP TERMS: NET 30 DAYS - FOB BARDSTOWN KY.
PRICE BASED UPON STANDARD INKS (EXCLUDES FLUORESCENTS & METALLICS)
PRODUCTION DIE SET: [*]
- -------------------------------------------
- -------------------------------------------
cc: Hal McDonald - Saddlebrook PPD, Yvonne Jogodzinski - 29L Pp
Adrian Seguiti
6/13/97 292 B A
<PAGE>
OWENS-ILLINOIS LABELS INC.
PRICE LIST
Effective-8/8/97
USA DETERGENTS NICE N'FLUFFY 120 OZ.
<TABLE>
<CAPTION>
- ---------------------------------------------------- --------------------------------
Standard Opacity Standard Overgloss
- ---------------------------------------------------- --------------------------------
- ----------------------------------------------------
Based on Estimated Sizes Unless Template # is Shown Front Back
VIM230 VIM230
- ----------------------------------------------------
<S> <C> <C> <C> <C>
Template Mold Width 7.678 7.678
Height 7.048 7.048
- -----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
[*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
M "SETS" Price/M "SETS" Price/M "FRONTS" Price/M "BACKS"
[*] [*] [*] [*]
</TABLE>
SINGLE PRICE FOR ANY ORDER QTY. OF AT LEAST 250M SETS
PREP AND ART COSTS BASED ON ART SUPPLIED ORDERS SUBJECT TO +/- 10% OVER/UNDERRUN
LABELS MANUFACTURED MAKE AND SHIP TERMS: NET 30 DAYS - FOB BARDSTOWN KY.
PRICE BASED UPON STANDARD INKS (EXCLUDES FLUORESCENTS & METALLICS)
PRODUCTION DIE SET: [*]
- -------------------------------------------
- -------------------------------------------
cc:
Adrian Seguiti
8/8/97 854 B A
<PAGE>
OWENS-ILLINOIS LABELS INC.
PRICE LIST
Effective-8/8/97
USA DETERGENTS 192 OZ.
<TABLE>
<CAPTION>
- ---------------------------------------------------- --------------------------------
Standard Opacity Standard Overgloss
- ---------------------------------------------------- --------------------------------
- ----------------------------------------------------
Based on Estimated Sizes Unless Template # is Shown Front Back
VIM228 VIM228
- ----------------------------------------------------
<S> <C> <C> <C> <C>
Template B-B-21403-004 Mold 21403 Width 7.791 7.791
B-B-21403-004 21403 Height 7.875 7.875
- -----------------------------------------------------------------------------------------------
[*] [*] [*] [*]
[*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
M "SETS" Price/M "SETS" Price/M "FRONTS" Price/M "BACKS"
[*] [*] [*] [*]
[*] [*] [*] [*]
</TABLE>
SINGLE PRICE FOR ANY ORDER QTY. OF AT LEAST 250M SETS
PREP AND ART COSTS BASED ON ART SUPPLIED ORDERS SUBJECT TO +/- 10% OVER/UNDERRUN
LABELS MANUFACTURED MAKE AND SHIP TERMS: NET 30 DAYS - FOB BARDSTOWN KY.
PRICE BASED UPON STANDARD INKS (EXCLUDES FLUORESCENTS & METALLICS)
PRODUCTION DIE SET: [*]
- -------------------------------------------
- -------------------------------------------
cc:
Adrian Seguiti
8/8/97 855 B A
<PAGE>
OWENS-ILLINOIS LABELS & CARRIERS, INC.
EXHIBIT C
SUPPLY AGREEMENT
OWENS-ILLINOIS LABELS INC.
USA DETERGENTS, INC.
IMPACT OF RESIN COST CHANGES
<TABLE>
<CAPTION>
Effect of a $.01/lb. Change / M Labels
-------------------------------------- Price Adjustment
ITEM HDPE LDPE TOTAL Per M Sets
---- ---- ---- ----- ----------
<S> <C> <C> <C> <C>
O-I DuraCore(TM)
Plastic Labels
24 oz. Super Scrub [*] [*] [*] [*]
22 oz. Trigger [*] [*] [*] [*]
32 oz. Citation [*] [*] [*] [*]
80 oz. Gel [*] [*] [*] [*]
64 oz. XTRA [*] [*] [*] [*]
64 oz. NNF [*] [*] [*] [*]
100 oz. [*] [*] [*] [*]
128 oz. XTRA [*] [*] [*] [*]
128 oz. NNF [*] [*] [*] [*]
120 oz. NNF [*] [*] [*] [*]
192 oz. XTRA & NNF [*] [*] [*] [*]
</TABLE>
<PAGE>
OWENS-ILLINOIS LABELS & CARRIERS, INC.
EXHIBIT D
SUPPLY AGREEMENT
OWENS-ILLINOIS LABELS INC.
USA DETERGENTS, INC.
(INTENTIONALLY OMITTED)
<PAGE>
OWENS-ILLINOIS LABELS & CARRIERS, INC.
EXHIBIT E
SUPPLY AGREEMENT
OWENS-ILLINOIS LABELS INC.
USA DETERGENTS, INC.
ART AND PREPARATORY CHARGES
IN EFFECT AS OF JANUARY 1, 1997
<TABLE>
<CAPTION>
===============================================================================================
COLORS UNIT SERVICE STANDARD FLEXO OFFSET
FLEXO PROCESS
===============================================================================================
<S> <C> <C> <C> <C> <C>
NEW DESIGN/LAYOUT (PER DESIGN) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
CREATE NEW MECHANICAL ART (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
ARTWORK REVISIONS (MINOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
ARTWORK REVISIONS (MAJOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
VIGNETTE (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
COLOR SEPARATIONS [*] [*] [*]
- -----------------------------------------------------------------------------------------------
DUPLICATE COLOR SEPARATIONS (NEW SIZE) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
DUPLICATE COLOR SEPARATIONS (SAME SIZE) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
MOUNT & CONTACT CUSTOMER FILMS (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
UNIVERSAL PRODUCT CODE [*] [*] [*]
- -----------------------------------------------------------------------------------------------
THERMAL PROOF (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
COLOR COPIES [*] [*] [*]
- -----------------------------------------------------------------------------------------------
B&W STATS [*] [*] [*]
- -----------------------------------------------------------------------------------------------
RAINBOW PROOF (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
COLOR KEY (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
CROMILIN (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
MATCHPRINT (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
PRODUCT MOCK-UP PROOF [*] [*] [*]
- -----------------------------------------------------------------------------------------------
FILM STRIPPING TO ONE-UP NEGATIVES (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
STEP & REPEAT NEGATIVE (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
PRINTING PLATE (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
DUPLICATE NEGATIVE (PER COLOR) [*] [*] [*]
- -----------------------------------------------------------------------------------------------
OVERTIME CHARGES APPROVED BY CUSTOMER [*] [*] [*]
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL:
===============================================================================================
COMMENTS:
===============================================================================================
</TABLE>
<PAGE>
OWENS-ILLINOIS LABELS & CARRIERS, INC.
EXHIBIT F
SUPPLY AGREEMENT
OWENS-ILLINOIS LABELS INC.
USA DETERGENTS, INC.
O-I LABELS PRODUCT SPECIFICATIONS
DuraCore(TM) PLASTIC IN-MOLD LABELS
Substrate Material: [*]
Thickness: [*]
Printing: [*]
Die Cutting: [*]
Sizes: [*]
Packing: [*]
<PAGE>
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE
CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND ARE DENOTED BY [*]. THE
CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.
OWENS-BROCKWAY
PLASTIC CONTAINERS
a unit of Owens-Illinois Plastics Group
August 1, 1997
AMENDMENT TO EXISTING SUPPLY AGREEMENT BETWEEN USA DETERGENTS AND
OWENS-BROCKWAY PLASTICS OF NOVEMBER 29, 1994
USA Detergents has agreed to purchase [*] of their [*], per agreement dated May
29, 1997, [*] of its [*] needs, per agreement dated June 7, 1997, and all of
their current and replacement [*] and [*] needs, per agreement dated June 2,
1997.
Points of Agreement:
1.) This amends the November 29, 1994 to reflect the mechanism
for implementing the [*] in the [*] as provided in the May 29,
1997 Trigger Sprayer Supply Agreement, lower label prices per
attached schedule and lower Non-DBS prices.
2.) Lower prices to USA Detergents and supply of new items by
Owens-Brockway will be effective August 1, 1997.
Price implementation may be subject to reverting to pre August
1, 1997 pricing if accounts receivable are not with the stated
[*] status by September 1, 1997, or at Owens-Brockway's agreed
upon timing.
All Terms and conditions of the November 29, 1994 and
subsequent amendments remain in full effect except to the
extent they are inconsistent herewith.
<TABLE>
<CAPTION>
<S> <C>
USA Detergents, Inc. Owens-Brockway Plastic Products Inc.
on behalf of itself and Owens-Illinois
Closure Inc. and Owens Label
and its affiliated companies
By: /s/ Dan Parker By: /s/ David L. Andrulonis
-------------------------------------- ----------------------------------
Title: Vice President Materials Management Title: V.P. Household Business Unit
-------------------------------------- ----------------------------------
Date: 9/11/97 Date: 9/12/97
-------------------------------------- ----------------------------------
</TABLE>
<PAGE>
USA DETERGENTS
NON-DBS PROPOSAL
[*]
USA-8-97 YCJ SCHEDULE I
<PAGE>
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE
CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND ARE DENOTED BY [*]. THE
CONFIDENTIAL PORTIONS HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.
January 1, 1999
AMENDMENT TO EXISTING SUPPLY AGREEMENTS BETWEEN USA DETERGENTS AND
OWENS-ILLINOIS PLASTIC PRODUCTS INC., OWENS-ILLINOIS CLOSURE INC. AND
OWENS-ILLINOIS LABELS INC.
Owens-Illinois Plastic Products Inc., Owens-Illinois Closure Inc. and
Owens-Illinois Labels, Inc. (collectively referred to as "Owens") and USA
Detergents, Inc. ("USA") hereby agrees to amend all current agreements wherein
USA agrees to purchase[*], including Bottles, Labels, Trigger Sprayers, Scoops
and Closures, from Owens, as set forth in Exhibits A, B, & C (attached), for the
term specified below. Furthermore, USA agrees to offer Owens the right of first
refusal, at prices and other terms and conditions that would be offered by
another third party supplier, to supply other non-DBS bottle and closure
requirements, consistent with normal commercial criteria, i.e., quality and
service mutually agreed to by both parties and pricing at the sole discretion of
USA.
Points of Agreement:
1) This amends the November 29, 1994 Supply Agreement, the Kansas
City/Harrisonville, MO, Supply Agreement dated December 18, 1996, the amendment
to existing Supply Agreement dated August 1, 1997 covering Trigger Sprayers and
Scoops and IML Label needs, and the West Coast Supply Agreement dated March 1,
1996.
2) TERMS: Commencing January 1, 1999, and concluding December 31, 2003.
The Agreements are extended as follows:
ITEM LOCATIONS EXPIRATION DATE
---- --------- ---------------
A) Bottles [*]
[*]
[*]
[*] 12/31/03
B) Trigger [*] 12/31/03
Sprayers
C) Scoops [*] 12/31/03
<PAGE>
D) Closures [*] 12/31/03
[*]
E) Labels [*] 12/31/03
3) MACHINE COMMITMENT FEE: The monthly fee for each bottle machine is:
COMMITMENT COMMITMENT
LOCATION MACHINE FEE/MONTH QTY./DAY
Edison [*] [*] [*]
[*] [*] [*]
[*] [*] [*] [*]
[*] [*]
Kansas City [*] [*] [*]
[*] [*] [*]
Swing (Edison/Midwest) [*] [*] [*]
[*]
[*]
4) PRICES: Refer to Exhibits A, B, & C (attached). Prices for bottles, closures,
labels, and scoops exclusive of resin, shall be considered firm through December
31, 2003, subject to CPI adjustment. CPI BASED PRICE INCREASE - [*]. (CPI -
Consumer Price Index). CPI to be calculated annually and any increase to be
effective January 1st of the following year. All increases are exclusive of
resin, corrugated and any other raw materials. Base year is considered 1998.
Price of resin is subject to change with thirty (30) days advance written
notice, in accordance with terms of Paragraph 7.
The agreed upon pricing reflected in this Agreement and related exhibits takes
into consideration the [*].
5) INCREMENTAL BUSINESS: All incremental business except Trigger Sprayers will
be rebated at [*]. For example, see Attachment 2. [*]. The incremental rebate
applies to currently owned brands. The incremental rebate also applies to brands
acquired through acquisition from or of non Owens' customers. The incremental
rebate does not apply to businesses acquired through purchase form or of then
current Owens' customers.
6) [*]
7) RESIN PRICE ADJUSTMENT: The fundamental premise of resin price adjustment
between Owens and USA is based upon market movement. The process for executing
this is as follows: [*].
If Owens and USA cannot mutually agree regarding actual movements, both parties
agree that the dispute will be resolved through in an independent audit. The
party that is alleging that market movement is not
<PAGE>
being accurately reflected in the price adjustment has the right to request
Owens' independent accounting firm to audit price changes announced by Owens to
USA, to verify and only report that they are consistent with resin changes
accepted by Owens' other significant/major customers. This process will be
considered binding resolution of such dispute. All expenses associated with the
audit process will be the responsibility of the party requesting the audit.
8) F.O.B. POINT: For bottles produced in Owens' St. Louis plant, the F.O.B.
point shall be Owens' Kansas City, MO, plant, unless prior agreements to move
production to St. Louis for additional volume beyond the current committed
machine. For cups produced in Chattanooga for shipment to North Brunswick, the
F.O.B. point shall be Owens' Brookville, PA plant, unless prior agreements to
move production to Chattanooga for additional volume. See attachment 3.
9) TERMS OF PAYMENT: USA agrees to pay [*]. See schedule on Attachment 4. Owens
agrees to [*]. Both parties agree to review the terms of payment at the
beginning of year 2001 to endeavor to [*].
10) SURGE CAPACITY: [*], Owens recognizes the need to provide production output
of the dedicated bottle machines covered by the commitment fee in above
Paragraph 3.
a) Temporary Surge - Owens will supply USA from machines in other
locations with [*] over the capacity dedicated to USA by their monthly
commitment fee on the following basis. Surge capacity of [*] will be
made available to USA within [*] after receiving written notice from
USA, within [*] will be made available. USA will be required to
purchase such output [*] after production. USA must provide Owens 45
days written notice in order to release machines committed by Owens for
temporary surge. The bottles will be priced at [*].
b) Transition Surge - Three months after notification for an additional
dedicated machine, [*].
c) Owens will commit enough stock molds to USA for surges.
11) PRODUCTIVITY IMPROVEMENT/COST REDUCTIONS: Both Owens and USA agree that the
success of our mutual objectives depends upon continuing to improve the
efficiency of the DBS package system and the use of the system by USA to reduce
downtime, job changes, color changes, etc. through timely forecasting of USA
requirements.
Commitment quantities as set forth in Paragraph 3 and actual production will be
reconciled monthly and applied annually. In the event that commitment quantities
are not achieved, Owens will reimburse USA for the lease cost associated with
the volume shortfall. For wheel machines, mold change will be excluded from the
productivity calculation based on 12 hours per mold change. See Attachment 5.
12) LABEL SCRAP RATE: Label scrap allowance to be set at [*]. Scrap to be
calculated in aggregate and reconciled monthly and applied annually. See
Attachment 6.
13) CONTINGENCY PLAN: Owens to provide USA with a formal contingency supply plan
with respect to labor and/or asset interruption. Plan to be reviewed and updated
on an annual basis on or before February 1st of each year.
14) FINISHED GOODS INVENTORY: Owens agrees [*]. If inventory levels [*] Owens
can either elect to continue to produce and hold [*] of inventory or [*].
<PAGE>
15) Production Capacity, Option for Additional Dedicated Machines, Force
Majeure, Termination, Assignability and Arbitration are included in the November
29, 1994 Supply Agreement. The Mold Pool, West Coast Supply Agreement, Length of
Run, Component Ordering Lead Time, and Standard Conditions of Sale no longer
exist as part of the agreement.
ll terms and conditions of the November 29, 1994 and subsequent amendments
remain in full effect except to the extent they are inconsistent herewith.
For Owens For USA
/s/ Russ Berkoben 4/5/99 /s/ Uri Evan
- ----------------------------------- -----------------------------------
Russ Berkoben Date Uri Evan Date
/s/ John Johnson 4/5/99 /s/ Keith Spero 4/20/99
- ----------------------------------- -----------------------------------
John Johnson Date Keith Spero Date
/s/ Hal MacDonald 4/6/99 /s/ Clark Gram 4/20/99
- ----------------------------------- -----------------------------------
Hal MacDonald Date Clark Gram Date
<PAGE>
ATTACHMENT 1
CHEMICAL DATA INC.
MONTHLY PETROCHEMICAL & PLASTICS ANALYSIS
<TABLE>
<CAPTION>
HIGH DENSITY
POLYETHYLENE
(MILLION POUNDS)
LARGE BUYER CONTRACT PRICES
($/LB., FRT. ALLD.) PRODUCTION
------------------------------------ -----------------------
AVERAGE
MED. HIC ANNUAL AVERAGE
QUAL. INJ. BLOW HMW THIS YEAR TO PRIOR % DESIGN OPERATING
PERIOD MLDG. MLDG. FILM PERIOD DATE Y.T.D. CHANGE CAPACITY RATE (%)
- ------ ----- ----- ---- ------ ---- ------ ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Aug 98 .325 .355 .370 1,159 8,694 8,301 4.7 14,403 94.7
Sep 98 .315 .345 .360 1,000 9,694 9,408 3.9 14,403 84.5
Oct 98 .310 .340 .355 1,046 10,740 10,493 2.4 14,528 84.8
Nov 98 .305 .335 .350 1,084 11,824 11,504 2.8 14,818 89.0
Dec 98 .295 .325 .340 1,056 12,880 12,557 2.6 15,158 82.0
Jan 99* .285 .315 .330 1,053 15,213
Feb 99 .315e .345e .360e 2,068 15,213
1Q 98 .387 .417 .432 3,152 3,152 2,989 5.4 14,478 88.3
2Q 98 .355 .385 .400 3,280 6,432 6,061 6.1 14,478 90.9
3Q 98 .325 .355 .370 3,263 9,694 9,408 3.0 14,403 89.9
4Q 98 .303 .333 .348 3,186 12,880 12,557 2.6 14,835 85.2
1Q 99 .305 .335 .350 3,300 3,300 3,152 4.7 15,213 88.0
2Q 99 .310 .340 .355 3,400 6,700 6,424 4.3 15,060 90.6
3Q 99 .295 .325 .340 3,380 10,080 9,695 4.0 15,193 88.3
4Q 99 .295 .325 .340 3,390 13,470 12,880 4.6 15,673 85.8
1Q 00 .320 .350 .365 3,450 3,450 15,723 89.0
2Q 00 .300 .330 .345 3,600 7,050 15,723 91.8
3Q 00 .270 .300 .315 3,590 10,640 15,783 90.2
4Q 00 .290 .320 .335 3,560 14,200 15,783 89.5
1997 .444 .463 .481 12,557 12,557 12,373 1.5 14,117 88.9
1998 .343 .373 .388 12,880 12,880 12,557 2.6 14,550 88.5
1999 .301 .331 .346 13,470 13,470 12,880 4.6 15,283 88.1
2000 .295 .325 .340 14,200 14,200 13,470 5.4 15,752 90.1
</TABLE>
* While there were no actual market price movements in January 1999, a
1(cent)/Lb adjustment was made to reflect higher levels of discounts that
have occurred over the past year or so. HIC = household, industrial, &
consumer blow molding grades, and HMW = high molecular weight film grades.
From our perspective, a lot of things have changed in the marketplace since our
last report and many of those are in favor of supporting the current price
increase nomination of 3 to 5(cent)/Lb that is working its way through the
marketplace. First, the economy with its powerful 5.6 percent growth rate was a
lot stronger than most had expected in the final quarter of last
<PAGE>
year. This has obviously helped to improve demand for polyethylene and also
appears to be carrying over into this year. The year-end 1998 data from The
Society of the Plastics Industry, Inc. (SPI) shows that high-density
polyethylene (HDPE) sales and end use growth were 3.8 percent above 1997 with a
flat level of exports. Our routine survey work this month turned up very few
consumers who were seeing a slowdown in demand. Because imports were up last
year by more than 7 percent, U.S. production was up only 2.6 percent during
1998. Remember that HDPE resin in the U.S. has historically grown at about 3
times GDP, although this wasn't so last year when GDP was 3.9 percent for the
entire year.
Second, the ethylene monomer market tightened up and it is expected to remain
this way for the next quarter or two. This is a change from our previous
outlook. When the fourth
<PAGE>
ATTACHMENT 2
USA DETERGENTS, INC.
[*]
<TABLE>
<CAPTION>
----------------------------
(B)
----------------------------
- -----------------------------------------------------------------------------------------------------------------------
CURRENT
1998 1999 2000 2001 2002 2003
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ADJUSTED 1998 BASE BUSINESS
[*]
- ----------------------------------------------------
All Adjusted Base Business [*] [*] [*] [*] [*] [*]
Cost Reductions (Except Triggers) [*] [*] [*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------------------------------
Total on Adjusted Base Business (A) [*] [*] [*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------------------------------
ADJUSTED 1998 BASE BUSINESS
[*]
- ----------------------------------------------------
All Adjusted Base Business [*] [*] [*] [*] [*] [*]
Cost Reductions [*] [*] [*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------------------------------
Incremental Percentage (Except Triggers) [*] [*] [*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------------------------------
Total on Adjusted Base Business (A) [*] [*] [*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(A) [*]
(B) [*]
[*] Business Example
<TABLE>
<CAPTION>
---------------------------------------------------------------------
[*] [*] [*] [*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Bottles
Closures
Label, Scoops
Triggers (not included) [*] [*] [*] [*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------------
SUB-TOTAL [*] [*] [*] [*] [*] [*] [*]
- -----------------------------------------------------------------------------------------------------
Additional Savings
Freight (Closures) [*]
Freight (Bottles) [*]
=====================================================================================================
TOTAL [*] [*] [*]
=====================================================================================================
</TABLE>
* Example of adjustments that may be made during each year.
<PAGE>
ATTACHMENT 3
MANUFACTURING LOCATIONS
AGREED UPON PLANTS OF MANUFACTURE
JANUARY 1, 1999
SHIP TO LOCATION PLANT OF MANUFACTURE
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
[*] [*] [*]
<PAGE>
ATTACHMENT 4
PAST DUE RECEIVABLES
PAYMENT PLAN
BALANCE DUE
TOTAL DUE APPROXIMATELY [*] [*]
01/01/99 - 01/31/99 5% Rebate [*] [*]
01/01/99 - 3/31/99 Tax Rebate [*] [*]
03/31/99 - 12/31/99 Income/1999 Rebate [*] [*]
<PAGE>
ATTACHMENT 5
<TABLE>
<CAPTION>
- -----------------------------------------------------
PRODUCTIVITY RECONCILIATION - EXAMPLE
- -----------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
BC-3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Contract Days [*]
USAD Shutdown [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*]
- ----------------------------------------------------------------------------------------------------------------------------------
Adj Contract Days [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*]
- ----------------------------------------------------------------------------------------------------------------------------------
Adj Contract Production
Actual Production
- ----------------------------------------------------------------------------------------------------------------------------------
DIFFERENCE 0 0 0 0 0 0 0 0 0 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
WHEEL JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
- ----------------------------------------------------------------------------------------------------------------------------------
Contract Days [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*]
- ----------------------------------------------------------------------------------------------------------------------------------
Owens Mold Change Days [*]
USAD Shutdown [*] [*]
- ----------------------------------------------------------------------------------------------------------------------------------
Adj Contract Days [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*] [*]
- ----------------------------------------------------------------------------------------------------------------------------------
Adj Contract Production
Actual Production
- ----------------------------------------------------------------------------------------------------------------------------------
DIFFERENCE 0 0 0 0 0 0 0 0 0 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL ALL MACHINES Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
- ----------------------------------------------------------------------------------------------------------------------------------
Adj Contract Production 0 0 0 0 0 0 0 0 0 0 0 0 0
Actual Production 0 0 0 0 0 0 0 0 0 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
Difference 0 0 0 0 0 0 0 0 0 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION USAD PRODUCTION - HARRISONVILLE, NORTH BRUNSWICK
USAD ACCOUNTING - NORTH BRUNSWICK
USAD PURCHASING - NORTH BRUNSWICK
OWENS - TOLEDO
OWENS - SADDLEBROOK
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
USA DETERGENTS INC. ATTACHMENT 6
LABEL ROLL FORWARD SCHEDULE OWENS-BROCKWAY LABEL DATA
BEGINNING: JANUARY 1999 ALL PLANTS
- -----------------------------------------------------------------------------------------------------------------------------------
1/01/99 1/01/99
BEGIN. BEGIN.
ITEM # SIDE DESCRIPTION LABELS BOTTLES RECEIPTS PRODUCTION SHIPMENTS TRANSFERS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
24oz Power
4118500 Front Scrub 43000 52224 350000 368064 155520 0
- -----------------------------------------------------------------------------------------------------------------------------------
4119500 Backs 70000 52224 350000 368064 155520 0
- -----------------------------------------------------------------------------------------------------------------------------------
4004000 Front 22oz Fabulous 163000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
4005000 Backs 168000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
32oz Xtra $
4049200 Front 1.99 221500 0 0 69888 37632 0
- -----------------------------------------------------------------------------------------------------------------------------------
4049100 Backs 222500 0 0 69888 37632 0
- -----------------------------------------------------------------------------------------------------------------------------------
4022000 Front 32oz NNF $ 1.79 190000 17472 0 80640 17232 0
- -----------------------------------------------------------------------------------------------------------------------------------
4023000 Backs 193500 17472 0 80640 17232 0
- -----------------------------------------------------------------------------------------------------------------------------------
32oz Bleach
4047000 Front Alt $1.99 85156 10752 0 26880 21504 0
- -----------------------------------------------------------------------------------------------------------------------------------
4048000 Backs 82356 10752 0 26880 21504 0
- -----------------------------------------------------------------------------------------------------------------------------------
32oz Mtn Fresh
4091000 Front $1.79 365500 38896 0 198374 158592 0
- -----------------------------------------------------------------------------------------------------------------------------------
4092000 Backs 357200 38896 0 198374 158592 0
- -----------------------------------------------------------------------------------------------------------------------------------
4093000 Front 32oz Fine Care 14900 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
4094000 Backs 4900 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
32oz Plummers
4670000 Front Aid 331500 49728 0 56736 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
4671000 Backs 340500 49728 0 56736 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
4109000 Front 22oz Xtra Easy 197400 52440 0 1520 49400 0
- -----------------------------------------------------------------------------------------------------------------------------------
4110000 Backs 199100 52440 0 1520 49400 0
- -----------------------------------------------------------------------------------------------------------------------------------
80oz Xtra Gel
4194000 Front V.P. 96000 46818 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
4125000 Backs 403000 98100 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
80oz Xtra Plus
4124000 Front Gel 337000 51282 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
1/31/99 1/31/99 M LABELS
END. END. M LABELS 5% SCRAP QUANTITY STD. "M" $'S
TO-WHOM LABELS BOTTLES (LOSS)/GAIN ALLOWANCE VARIANCE PRICE (LOSS)/GAIN
- ----------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
0 264768 [*] [*] [*] [*] ($169.85)
- ----------------------------------------------------------------------------------------------------------
22491 264768 -29 [*] [*] [*] ($287.09)
- ----------------------------------------------------------------------------------------------------------
163000 0 0 [*] [*] [*] $0.00
- ----------------------------------------------------------------------------------------------------------
168000 0 0 [*] [*] [*] $0.00
- ----------------------------------------------------------------------------------------------------------
147419 32256 -4 [*] [*] [*] ($18.16)
- ----------------------------------------------------------------------------------------------------------
148419 32256 -4 [*] [*] [*] ($18.16)
- ----------------------------------------------------------------------------------------------------------
104522 80880 -5 [*] [*] [*] ($20.96)
- ----------------------------------------------------------------------------------------------------------
106022 80880 -5 [*] [*] [*] ($20.96)
- ----------------------------------------------------------------------------------------------------------
53863 16128 -2 [*] [*] [*] ($6.99)
- ----------------------------------------------------------------------------------------------------------
53863 16128 -2 [*] [*] [*] ($6.99)
- ----------------------------------------------------------------------------------------------------------
155224 78678 -12 [*] [*] [*] ($51.57)
- ----------------------------------------------------------------------------------------------------------
146924 78678 -12 [*] [*] [*] ($51.57)
- ----------------------------------------------------------------------------------------------------------
14900 0 0 [*] [*] [*] $0.00
- ----------------------------------------------------------------------------------------------------------
4900 0 0 [*] [*] [*] $0.00
- ----------------------------------------------------------------------------------------------------------
270225 106464 -5 [*] [*] [*] ($44.26)
- ----------------------------------------------------------------------------------------------------------
279225 106464 -5 [*] [*] [*] ($44.26)
- ----------------------------------------------------------------------------------------------------------
197400 4560 2 [*] [*] [*] $41.50
- ----------------------------------------------------------------------------------------------------------
199100 4560 2 [*] [*] [*] $41.50
- ----------------------------------------------------------------------------------------------------------
96000 46818 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
403000 96100 0 [*] [*] [*] $0.00
- ----------------------------------------------------------------------------------------------------------
337000 51282 0 [*] [*] [*] $0.00
- ----------------------------------------------------------------------------------------------------------
<PAGE>
- -----------------------------------------------------------------------------------------------------------------------------------
USA DETERGENTS INC. ATTACHMENT 6
LABEL ROLL FORWARD SCHEDULE OWENS-BROCKWAY LABEL DATA
BEGINNING: JANUARY 1999 ALL PLANTS
- -----------------------------------------------------------------------------------------------------------------------------------
128oz Xtra
4178000 Backs $5.99 22240 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
4179000 Front 31440 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
128oz Xtra
4132000 Front $4.99 2685600 385800 0 900360 919680 0
- -----------------------------------------------------------------------------------------------------------------------------------
4133000 Backs 2881600 653530 1506000 1445830 1592240 0
- -----------------------------------------------------------------------------------------------------------------------------------
4134000 Front 128oz Xtra V.P. 1345600 267730 504000 545470 672560 0
- -----------------------------------------------------------------------------------------------------------------------------------
128oz Bleach
4140000 Front $4.99 2382700 464160 0 846960 1215840 0
- -----------------------------------------------------------------------------------------------------------------------------------
4141000 Backs 1943480 773250 1006000 1392510 1834080 0
- -----------------------------------------------------------------------------------------------------------------------------------
128oz Bleach
4142000 Front V.P. 1843580 309090 0 545550 618240 0
- -----------------------------------------------------------------------------------------------------------------------------------
128oz NNF
4144000 Front $2.99 0 102720 0 0 102720 0
- -----------------------------------------------------------------------------------------------------------------------------------
4145000 Backs 0 102720 0 0 102720 0
- -----------------------------------------------------------------------------------------------------------------------------------
128oz Xtra
4146000 Front $3.99 0 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
4147000 Backs 0 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
128oz NNF
4150000 Front $3.99 934000 347040 252000 202795 383515 0
- -----------------------------------------------------------------------------------------------------------------------------------
4151000 Backs 596500 746130 300000 381145 723355 0
- -----------------------------------------------------------------------------------------------------------------------------------
4152000 Front 128oz NNF V.P. 650000 399090 252000 178350 339840 0
- -----------------------------------------------------------------------------------------------------------------------------------
128oz Mtn
4154100 Front Fresh $3.99 556500 118560 756000 489120 329280 0
- -----------------------------------------------------------------------------------------------------------------------------------
4155100 Backs 600600 204600 900000 815280 504000 0
- -----------------------------------------------------------------------------------------------------------------------------------
128oz Mtn
4154200 Front Fresh V.P. 410200 86040 258000 326160 174720 0
- -----------------------------------------------------------------------------------------------------------------------------------
128oz Laundry
4158000 Front Brite 33300 14610 0 0 10560 0
- -----------------------------------------------------------------------------------------------------------------------------------
4159000 Backs 36800 14610 0 0 10560 0
- -----------------------------------------------------------------------------------------------------------------------------------
128oz Laundry
4160000 Front Soft 121000 6690 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
4161000 Backs 124000 6690 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
64oz Xtra
4162000 Front $2.79 272691 96000 512000 200960 107520 0
- -----------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
22240 0 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
31440 0 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
170187
9 366480 -83 [*] [*] [*] ($996.92)
- ---------------------------------------------------------------------------------------------------------
283687 507120 -105 [*] [*] [*] ($847.59)
9
- ---------------------------------------------------------------------------------------------------------
126550 140640 -39 [*] [*] [*] ($295.27)
0
- ---------------------------------------------------------------------------------------------------------
149974
7 95280 -36 [*] [*] [*] $165.23
- ---------------------------------------------------------------------------------------------------------
144064 331680 -118 [*] [*] [*] ($1,266.11)
8
- ---------------------------------------------------------------------------------------------------------
127579
6 236400 -22 [*] [*] [*] $131.13
- ---------------------------------------------------------------------------------------------------------
0 0 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
0 0 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
0 0 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
0 0 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
957232 166320 -26 [*] [*] [*] ($411.66)
- ---------------------------------------------------------------------------------------------------------
477459 403920 -38 [*] [*] [*] ($489.81)
- ---------------------------------------------------------------------------------------------------------
712727 237600 -11 [*] [*] [*] ($52.14)
- ---------------------------------------------------------------------------------------------------------
771282 278400 -52 [*] [*] [*] ($719.21)
- ---------------------------------------------------------------------------------------------------------
592094 515880 -93 [*] [*] [*] ($1,364.01)
- ---------------------------------------------------------------------------------------------------------
285732 237480 -56 [*] [*] [*] ($1,040.00)
- ---------------------------------------------------------------------------------------------------------
33300 4050 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
36800 4050 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
121000 6690 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
124000 6690 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
571673 189440 -12 [*] [*] [*] ($52.26)
- ---------------------------------------------------------------------------------------------------------
<PAGE>
-----------------------------------------------------------------------------------------------------------------------------
USA DETERGENTS INC. ATTACHMENT 6
LABEL ROLL FORWARD SCHEDULE OWENS-BROCKWAY LABEL DATA
BEGINNING: JANUARY 1999 ALL PLANTS
-----------------------------------------------------------------------------------------------------------------------------
4163000 Backs 1280691 96800 0 200960 107520 0
-----------------------------------------------------------------------------------------------------------------------------
4164000 Front 64oz Xtra V.P. 2023000 800 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
64oz Xtra
4166000 Front Bleach $2.79 135975 680 408000 355840 197120 0
-----------------------------------------------------------------------------------------------------------------------------
4167000 Backs 274474 66880 392000 355840 258560 0
-----------------------------------------------------------------------------------------------------------------------------
4175100 Front 64oz NNF $2.49 17599 44040 300000 12800 37120 0
-----------------------------------------------------------------------------------------------------------------------------
4175200 Backs 538599 44040 0 12800 37120 0
-----------------------------------------------------------------------------------------------------------------------------
64oz NNF Xtra
4175300 Front V.P. 1023800 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------------
64oz Mtn Fresh
4175400 Front $2.49 282000 66280 0 14600 42240 0
-----------------------------------------------------------------------------------------------------------------------------
4175500 Backs 358792 101560 0 72320 57600 0
-----------------------------------------------------------------------------------------------------------------------------
64oz Mtn Fresh
4175600 Front V.P. 160591 35280 0 30720 15360 0
-----------------------------------------------------------------------------------------------------------------------------
64oz Xtra
4176000 Front Bleach V.P. 225500 66200 0 0 61440 0
-----------------------------------------------------------------------------------------------------------------------------
4118700 Front 100oz Xtra V.P. 507320 145290 512000 469170 436800 0
-----------------------------------------------------------------------------------------------------------------------------
4118800 Backs 514320 145290 512000 469170 436800 0
-----------------------------------------------------------------------------------------------------------------------------
100oz Bleach
4119000 Front V.P. 533580 151560 512000 566820 441850 0
-----------------------------------------------------------------------------------------------------------------------------
4119100 Backs 518580 151560 512000 566820 441850 0
-----------------------------------------------------------------------------------------------------------------------------
22oz Fab Spot
4672000 Front Stain $1.59 116500 0 0 57320 43320 0
-----------------------------------------------------------------------------------------------------------------------------
22oz Fab Spot
4674000 Backs Stain 124500 0 0 57320 43320 0
-----------------------------------------------------------------------------------------------------------------------------
22oz Fab A/B
4675000 Front Kitchen $1.59 474000 139640 0 117920 166830 0
-----------------------------------------------------------------------------------------------------------------------------
22oz Fab A/B
4677000 Backs Kitchen 473000 139840 0 117920 166830 0
-----------------------------------------------------------------------------------------------------------------------------
22oz Fab All
4678000 Front Purpose $1.59 167000 114855 252000 -240 47880 0
-----------------------------------------------------------------------------------------------------------------------------
4688000 Backs Purpose 426100 114855 0 -240 47880 0
-----------------------------------------------------------------------------------------------------------------------------
22oz Fab Bleach
4681000 Front $1.59 91100 198360 240000 65980 155040 0
-----------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
106773 190240 -12 [*] [*] [*] ($52.26)
- ----------------------------------------------------------------------------------------------------------
202300 800 0 [*] [*] [*] $0.00
0
- ----------------------------------------------------------------------------------------------------------
166784 159400 -21 [*] [*] [*] (192.53)
- ----------------------------------------------------------------------------------------------------------
289284 164160 -21 [*] [*] [*] ($92.51)
- ----------------------------------------------------------------------------------------------------------
304031 19720 -1 [*] [*] [*] ($3.33)
- ----------------------------------------------------------------------------------------------------------
525031 19720 -1 [*] [*] [*] ($3.33)
- ----------------------------------------------------------------------------------------------------------
102380 0 0 [*] [*] [*] $0.00
0
- ----------------------------------------------------------------------------------------------------------
237904 65640 -2 [*] [*] [*] ($10.82)
- ----------------------------------------------------------------------------------------------------------
282132 116280 -4 [*] [*] [*] ($18.82)
- ----------------------------------------------------------------------------------------------------------
128028 50640 -2 [*] [*] [*] ($7.98)
- ----------------------------------------------------------------------------------------------------------
225500 4760 0 [*] [*] [*] $0.00
- ----------------------------------------------------------------------------------------------------------
532160 177660 -18 [*] [*] [*] $142.18
- ----------------------------------------------------------------------------------------------------------
532660 177660 -24 [*] [*] [*] ($26.82)
- ----------------------------------------------------------------------------------------------------------
391620 276530 -87 [*] [*] [*] ($1,528.77)
- ----------------------------------------------------------------------------------------------------------
467120 276530 3 [*] [*] [*] $824.23
- ----------------------------------------------------------------------------------------------------------
56900 14000 -2 [*] [*] [*] $15.24
- ----------------------------------------------------------------------------------------------------------
64500 14000 -3 [*] [*] [*] $4.84
- ----------------------------------------------------------------------------------------------------------
355000 91130 -1 [*] [*] [*] $125.22
- ----------------------------------------------------------------------------------------------------------
351000 91130 -4 [*] [*] [*] $47.22
- ----------------------------------------------------------------------------------------------------------
419000 66735 0 [*] [*] [*] ($6.55)
- ----------------------------------------------------------------------------------------------------------
426600 66735 0 [*] [*] [*] $6.45
0
- ----------------------------------------------------------------------------------------------------------
265000 109300 0 [*] [*] [*] $82.65
- ----------------------------------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------------------------------------------------------
USA DETERGENTS INC. ATTACHMENT 6
LABEL ROLL FORWARD SCHEDULE OWENS-BROCKWAY LABEL DATA
BEGINNING: JANUARY 1999 ALL PLANTS
- -------------------------------------------------------------------------------------------------------------------------------
22oz Fab
4683000 Backs Bleach 112000 198360 252000 65980 155040 0
- -------------------------------------------------------------------------------------------------------------------------------
128oz Kmart
4687000 Front Detergent 0 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
4688000 Backs 0 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
41xxxxx Front 64oz Bi-Lingual 0 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
41xxxxx Backs 0 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
128oz Kmart
4691000 Front Fabric Soft 78000 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
4692000 Backs 85000 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
22oz Speedway
4693000 Front Glass Cleaner 396000 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
4694000 Backs 396000 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
22oz Speedway
4695000 Front Upholstery 516000 20448 0 0 20448 0
- -------------------------------------------------------------------------------------------------------------------------------
4696000 Backs 516000 20448 0 0 20448 0
- -------------------------------------------------------------------------------------------------------------------------------
22oz Speedway
4697000 Front White Wall 319500 15828 0 0 15828 0
- -------------------------------------------------------------------------------------------------------------------------------
4698000 Backs 319500 15828 0 0 15828 0
- -------------------------------------------------------------------------------------------------------------------------------
22oz Speedway
4699000 Front Degreaser 310500 279655 0 0 4440 0
- -------------------------------------------------------------------------------------------------------------------------------
4700000 Backs 310500 279655 0 0 4440 0
- -------------------------------------------------------------------------------------------------------------------------------
22oz Speedway
4701000 Front All Purpose 460500 16848 0 0 16848 0
- -------------------------------------------------------------------------------------------------------------------------------
4702000 Backs 460500 16848 0 0 16848 0
- -------------------------------------------------------------------------------------------------------------------------------
22oz Speedway
4703000 Front Wheel Cleaner 640500 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
4704000 Backs 640500 0 0 0 0 0
- -------------------------------------------------------------------------------------------------------------------------------
22oz Tile
4733000 Front Action - Mildew 324000 47880 0 100700 91200 0
- -------------------------------------------------------------------------------------------------------------------------------
4734000 Backs 327200 47880 0 100700 91200 0
- -------------------------------------------------------------------------------------------------------------------------------
22oz Tile
4735000 Front Action - Soap 379800 67617 0 83493 70680 0
- -------------------------------------------------------------------------------------------------------------------------------
4736000 Backs 368500 67617 0 83493 70680 0
- -------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
299000 109300 1 [*] [*] [*] $111.25
- --------------------------------------------------------------------------------------------------------
0 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
0 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
0 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
0 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
78000 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
85000 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
396000 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
396000 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
516000 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
516000 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
319500 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
319500 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
310500 275215 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
310500 275215 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
460500 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
460500 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
640500 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
640500 0 0 [*] [*] [*] $0.00
- -------------------------------------------------------------------------------------------------------
204000 57380 -19 [*] [*] [*] ($370.89)
- -------------------------------------------------------------------------------------------------------
207200 57380 -19 [*] [*] [*] ($370.89)
- -------------------------------------------------------------------------------------------------------
298300 80430 2 [*] [*] [*] $160.36
- -------------------------------------------------------------------------------------------------------
284000 80430 -1 [*] [*] [*] $82.36
- -------------------------------------------------------------------------------------------------------
<PAGE>
- -----------------------------------------------------------------------------------------------------------------------------
USA DETERGENTS INC. ATTACHMENT 6
LABEL ROLL FORWARD SCHEDULE OWENS-BROCKWAY LABEL DATA
BEGINNING: JANUARY 1999 ALL PLANTS
- -----------------------------------------------------------------------------------------------------------------------------
4112000 Front 22oz Xtra Ultra 528000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4113000 Backs 540000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4114000 Front 32oz NNF Ultra 12800 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4115000 Backs 22960 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
22oz Speedway
4704120 Front Floor Mat 425000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4704130 Backs 425000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4119200 Front 60oz NNF Ultra 796072 218720 0 328540 240640 0
- -----------------------------------------------------------------------------------------------------------------------------
4119300 Backs 789572 218720 0 328540 240640 0
- -----------------------------------------------------------------------------------------------------------------------------
22oz Speedway
4704100 Front Protectant 123000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4704110 Backs 123000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
22oz Tile
Action-Scum
4000259 Front Cand. 0 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4000260 Backs 0 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
22oz Spdwy
4033414 Front Upholstery-Cand. 200000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4033415 Backs 200000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
220z Spdwy
White
4033416 Front Wall-Cand. 232000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4033417 Backs 232000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
22oz Spdwy
4033420 Front Deterg-Cand. 238000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4033421 Backs 238000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
22oz Spdwy All
4033410 Front Purp.-Cand. 210000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4033411 Backs 210000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
22oz Spdwy
4033418 Front Wheel Cln-Cand. 285000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
4033419 Backs 285000 0 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------
192oz Xtra $
4136200 Front 7.49 144800 51832 0 0 10368 0
- -----------------------------------------------------------------------------------------------------------------------------
4136300 Backs 141500 51832 0 0 10368 0
- -----------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
528000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
540000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
12800 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
22960 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
425000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
425000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
445040 306620 -22 [*] [*] [*] ($157.69)
- --------------------------------------------------------------------------------------------------------
438540 306620 -22 [*] [*] [*] ($157.69)
- --------------------------------------------------------------------------------------------------------
123000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
123000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
0 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
0 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
200000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
200000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
232000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
232000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
238000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
238000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
210000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
210000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
285000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
285000 0 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
144800 41464 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
141500 41464 0 [*] [*] [*] $0.00
- --------------------------------------------------------------------------------------------------------
<PAGE>
- ---------------------------------------------------------------------------------------------------------------------------------
USA DETERGENTS INC. ATTACHMENT 6
LABEL ROLL FORWARD SCHEDULE OWENS-BROCKWAY LABEL DATA
BEGINNING: JANUARY 1999 ALL PLANTS
- ---------------------------------------------------------------------------------------------------------------------------------
192oz Bleach
4136400 Front $7.49 167500 27878 0 0 5184 0
- ---------------------------------------------------------------------------------------------------------------------------------
4136500 Backs 168500 27878 0 0 5184 0
- ---------------------------------------------------------------------------------------------------------------------------------
4129300 Front 192oz NNF V.P. 218900 19872 0 0 6048 0
- ---------------------------------------------------------------------------------------------------------------------------------
4129400 Backs 218900 19872 0 0 6048 0
- ---------------------------------------------------------------------------------------------------------------------------------
200oz Ultra
4000039 Front Xtra 205500 83808 126000 217152 174528 0
- ---------------------------------------------------------------------------------------------------------------------------------
4000040 Backs 226500 83808 126000 217152 174528 0
- ---------------------------------------------------------------------------------------------------------------------------------
200oz Ultra
4000041 Front Bleach 104000 78156 198000 207792 194364 0
- ---------------------------------------------------------------------------------------------------------------------------------
4000042 Backs 104125 78156 132000 207792 194364 0
- ---------------------------------------------------------------------------------------------------------------------------------
120oz Ultra
4129500 Front NNF V.P. 706000 122449 0 0 24900 0
- ---------------------------------------------------------------------------------------------------------------------------------
4129600 Backs 637866 148369 0 0 40260 0
- ---------------------------------------------------------------------------------------------------------------------------------
120oz Ultra
4129700 Front NNF $ 8.99 406400 25920 0 0 15360 0
- ---------------------------------------------------------------------------------------------------------------------------------
Front 128oz Xtra
Canadian 242630 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Backs 242630 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Front 128oz Bleach
Canadian 241929 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Backs 241929 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Front 128oz NNF
Canadian 238306 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Backs 250306 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Front 128oz Mtn
Fresh Canadian 259824 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
Backs 259824 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
60oz Ultra Mtn
4119400 Front Fresh V.P. 205000 183960 200000 0 71680 0
- ---------------------------------------------------------------------------------------------------------------------------------
4119500 Backs 215000 183960 200000 0 71680 0
- ---------------------------------------------------------------------------------------------------------------------------------
4133XX Front 128oz ALL
Enzymes 805500 21420 0 277440 126510 0
- ---------------------------------------------------------------------------------------------------------------------------------
4133XX Backs 346088 21420 336000 277440 126510 0
- ---------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
167500 22694 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
168500 22694 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
218900 13824 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
218900 13824 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
141472 126432 27 [*] [*] [*] $987.52
- -----------------------------------------------------------------------------------------------------
172364 126432 37 [*] [*] [*] $1,244.71
- -----------------------------------------------------------------------------------------------------
93575 91584 -1 [*] [*] [*] $253.67
- -----------------------------------------------------------------------------------------------------
5550 91584 -23 [*] [*] [*] ($322.23)
- -----------------------------------------------------------------------------------------------------
706000 97549 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
637866 108109 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
406400 10560 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
242630 0 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
242630 0 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
241929 0 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
241929 0 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
238306 0 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
250306 0 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
259824 0 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
259824 0 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
405000 112280 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
415000 112280 0 [*] [*] [*] $0.00
- -----------------------------------------------------------------------------------------------------
472000 172350 -56 [*] [*] [*] ($1,096.89)
- -----------------------------------------------------------------------------------------------------
347000 172350 -58 [*] [*] [*] ($1,138.18)
- -----------------------------------------------------------------------------------------------------
<PAGE>
- ---------------------------------------------------------------------------------------------------------------------------------
USA DETERGENTS INC. ATTACHMENT 6
LABEL ROLL FORWARD SCHEDULE OWENS-BROCKWAY LABEL DATA
BEGINNING: JANUARY 1999 ALL PLANTS
- ---------------------------------------------------------------------------------------------------------------------------------
32oz Fabulous
4010100 Front Cleaner 196800 74520 0 -72 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010110 Backs 203600 74520 0 -72 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
32oz Fab.
4010101 Front Kitchen Clean. 179500 16200 0 0 9720 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010111 Backs 190500 16200 0 0 9720 0
- ---------------------------------------------------------------------------------------------------------------------------------
32oz Fab. Rug
4010102 Front Cleaner 147500 57312 0 -3456 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010112 Backs 126000 57312 0 -3456 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
32oz Fab.
4010103 Front Clean Bleach 270000 81000 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010113 Backs 269500 81000 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
30oz Tile
4010104 Front Action Mildew 246500 44206 0 1800 12960 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010114 Backs 260600 44208 0 1800 12960 0
- ---------------------------------------------------------------------------------------------------------------------------------
32oz Tile
4010105 Front Action Soap 185300 22680 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010115 Backs 183800 22680 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010106 Front 32oz Xtra Easy 330300 24408 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010116 Backs 331000 24408 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
32oz Tog
4010107 Front W/Amonia 281800 46008 0 1296 35640 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010117 Backs 271300 46008 0 1296 35640 0
- ---------------------------------------------------------------------------------------------------------------------------------
32oz Tog
4010108 Front Cleaner 317000 60768 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010118 Backs 317000 60768 0 0 0 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010109 Front 32oz Swiss Pine 221300 77760 0 -13104 6480 0
- ---------------------------------------------------------------------------------------------------------------------------------
4010119 Backs 209800 77760 0 -13104 6480 0
- ---------------------------------------------------------------------------------------------------------------------------------
TOTALS: 56,639,325 11,334,964 12,158,000 15,914,676 16,225,962 0
- ---------------------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
196800 74448 0 [*] [*] [*] ($1.97)
- ---------------------------------------------------------------------------------------------------------
203600 74448 0 [*] [*] [*] ($1.97)
- ---------------------------------------------------------------------------------------------------------
179500 6480 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
190500 6480 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
147500 53856 -3 [*] [*] [*] ($94.35)
- ---------------------------------------------------------------------------------------------------------
126000 53856 -3 [*] [*] [*] ($94.35)
- ---------------------------------------------------------------------------------------------------------
270000 81000 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
269500 81000 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
246500 33048 2 [*] [*] [*] $49.14
- ---------------------------------------------------------------------------------------------------------
260600 33048 2 [*] [*] [*] $49.14
- ---------------------------------------------------------------------------------------------------------
185300 22680 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
183800 22680 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
330300 24408 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
331000 24408 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
281800 11664 1 [*] [*] [*] $35.38
- ---------------------------------------------------------------------------------------------------------
271300 11664 1 [*] [*] [*] $35.38
- ---------------------------------------------------------------------------------------------------------
317000 60768 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
317000 60768 0 [*] [*] [*] $0.00
- ---------------------------------------------------------------------------------------------------------
221300 58176 -13 [*] [*] [*] ($357.74)
- ---------------------------------------------------------------------------------------------------------
209800 58176 -13 [*] [*] [*] ($357.74)
- ---------------------------------------------------------------------------------------------------------
51,702,077 11,023,678 -1181 [*] [*] ($10,005.79)
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Note: Standard price ($26.00/M) is for this example only. Actual prices to be
used for calculation, 5% scrap allowance based on actual production.
<PAGE>
EXHIBIT A
BOTTLE PRICING SCHEDULE
<TABLE>
<CAPTION>
CODE # DESCRIPTION [*] [*] [*] [*]
- ---------------------------------------------------------------------------------------------------------------------
NON DBS/NON LEASE PRICING
<S> <C> <C> <C> <C> <C>
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1075 10 oz. Fine Care [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1201100 22 Fabulous w/ Bleach [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1202100 22 Fabulous Kitchen Cleanup [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1203100 22 Fabulous Carpet Cleaner [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1204100 22 Fabulous Lemon Scent [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1317000 22 Speedway Car Mat [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1318000 22 Speedway Tire Shine [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1321000 22 Xtra Easy [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1335000 22 Speedway Glass [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1336000 22 Speedway Upholstery [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1337000 22 Speedway Whitewall [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1313000 22 Speedway Degreaser [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1314000 22 Speedway All Purpose [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1341000 22 Speedway (Wheel) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1332000 22 Tile Action [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1343000 22 Tile Action Mildew Stain [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1010151 32 Fab All Purpose [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1010152 32 Fab Anti/Bact [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1010153 32 Fab Rug & Uphl [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1010154 32 Fab W/ Bleach [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1010155 32 Tile Action Mldw Rem [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1010156 32 Tile Action Soap/Scum [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1010157 32 Xtra Easy Stain Rem [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1010158 32 Touch of Glass W/ Ammonia [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1010159 32 Touch of Glass Surface [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1010160 32 Swiss Pine [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1060 32 Xtra [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1062 32 Xtra w/ Bleach [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1063 32 Mt. Fresh [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1065 32 Nice N' Fluffy [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1057 32 oz. Plumbers Aid [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1060 32 Xtra [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1062 32 Xtra w/ Bleach [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1063 32 Mt. Fresh [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1065 32 Nice N' Fluffy [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1057 32 oz. Plumbers Aid [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1033 80 oz. Dish Gel [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1034000 80 oz. Gel ADG-NP [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1115 24 Super Scrub [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1095 64 Fabulous [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
<PAGE>
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1120 64 Capt/Touch of Glass/Swiss Pine [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1140 64 Laundry Bright [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1145 64 Laundry Soft [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1120 64 Capt/Touch of Glass/Swiss Pine [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1140 64 Laundry Bright [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1145 64 Laundry Soft [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
DBS LEASE PRICING
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1067100 60 NNF Ultra Fresh Scent [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1067300 60 NNF Ultra Mt. Fresh [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1076200 64 Xtra $2.79 [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1076100 64 Xtra NP [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1081200 64 Xtra w/Bleach $2.79 [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1081100 64 Xtra w/Bleach NP [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1085200 64 NNF $2.49 [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1085100 64 NNF NP [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1083200 64 Mt. Fresh $2.49 [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1083100 64 ML Fresh NP [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1162100 100 Xtra Ultra [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1162200 100 Xtra Ultra w/Bleach [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1067200 120 Ultra Nice N Fluffy [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1067400 120 Ultra Nice N Fluffy 8.99 [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1067500 120 Ultra Nice N Fluffy NP [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1136000 128 Xtra 5.99 ENZYME [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1133300 128 Xtra Liquid ENZYME [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1169000 128 Xtra W/Bleach 5.99 ENZYME [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1168000 128 Xtra W/Bleach NP ENZYME [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1134000 128 Xtra 4.99 - (WHEEL) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1132000 128 Xtra V.P. - (WHEEL) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1162000 128 Xtra w/Bleach 4.99 (WHEEL) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1163000 128 Xtra w/Bleach VP (WHEEL) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1135 128 Nice N Fluffy 3.99 [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1138 128 Nice N Fluffy No Price [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1150 128 Mt. Fresh 3.99 [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1151 128 Mt. Fresh No Price [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1166000 128 Laundry Bright (Wheel) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1146 128 Laundry Soft [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1301 128 K Mart Laundry [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1302 128 K Mart W/Bleach [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1303 128 K Mart Fabric Softener [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1130100 128 Bottle Xtra Liquid - CANADA [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1167000 128 Bottle Xtra W/B - CANADA [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1139000 128 Bottle NNF F Scent - CANADA [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1152000 128 Bottle NNF Mtn Fresh - CANADA [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1133100 192 Xtra Liquid (2 Pack Reshipper) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1133200 192 Xtra W/Bleach (2 Pack Reshipper) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1085300 192 Nice N'Fluffy (2 Pack Reshipper) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1162500 200 Xtra Ultra Liquid (WHEEL) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1162700 200 Xtra Ultra Liquid 8.99 (WHEEL) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1162600 200 Xtra Ultra W/Bleach (WHEEL) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1162800 200 Xtra Ultra W/Bleach 8.99 (WHEEL) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1112000 20 Pwr Scrub Gel (12 PK) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
NON DBS/LEASE PRICING
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1140 64 Laundry Bright (BC-3) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1145 64 Laundry Soft (BC-3) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1120 64 Capt/Touch of Glass/Swiss Pine (BC-3) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1060 32 Xtra (BC-3) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1062 32 Xtra w/Bleach (BC-3) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1063 32 Mr. Fresh (BC-3) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1065 32 Nice N Fluffy (BC-3) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1057 32 oz. Plumbers Aid (BC-3) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1033 80 oz. Dish Gel (BC-3) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
1034000 80 oz. Dish Gel ADG-NP (BC-3) [*] [*] [*] [*]
- --------------- ------------------------------------------- -------------- ------------ ------------- ---------------
* [*]
** [*]
** [*]
*** [*]
</TABLE>
<PAGE>
EXHIBIT B
CLOSURE PRICING SCHEDULE
<TABLE>
<CAPTION>
ITEM
NUMBER DESCRIPTION [*] [*] [*]
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
2012000 43mm Pink (60 oz NNF) [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2014000 43mm Dark Blue (60 oz NNF) [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2016000 63mm White -Xtra Plus [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2020 28mm Yellow P/P [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2030 33mm Red [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2035 33mm Blue Xtra [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2040 33mm Pink W/Liner [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2175 33mm Fine Ribbed Reflex Blue [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2080 63mm Blue [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2085 63mm Reflex Blue [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2090 63mm Pink [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2095 63mm Green [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2096000 63mm Xtra Ultra Line Blue [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2097000 63mm Xtra Ultra W/Bleach Green [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
2170 33mm Red (BYNDEL) [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
SPRAYERS
- --------------------------------------------------------------------------------------------------------------------
3070000 Sprayer - Blue / Short Stem [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
3071000 Sprayer - White & Green [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
3080000 Sprayer - All Purpose Purple [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
3081000 Sprayer - Fab W/Bleach Green [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
3082000 Sprayer - Fab Spot & Stain Red [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
3083000 Sprayer - Teal - 22 oz. [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
3083010 Sprayer - Yellow / White [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
3083030 Sprayer - Blue / White [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
SCOOPS
- --------------------------------------------------------------------------------------------------------------------
3000000 Scoop - Xtra Ultra 4 oz. [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
3000015 Scoop - Xtra Pwdr 3/8 - 1/2Cup. [*] [*] [*]
- --------------------------------------------------------------------------------------------------------------------
* [*]
* [*]
[*]
[*]
** [*]
[*]
[*]
</TABLE>
<PAGE>
EXHIBIT C
LABEL PRICING SCHEDULE
<TABLE>
<CAPTION>
USA
ITEM
NUMBER DESCRIPTION [*] [*] [*] [*]
<S> <C> <C> <C> <C> <C> <C>
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4118500 20 OZ POWER SCRUB GEL W/B 1.59 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4118600 20 OZ POWER SCRUB GEL W/B - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4672000 22 OZ FAB SPOT & STN - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4674000 22 OZ FAB SPOT & STN - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4675000 22 OZ FAB A/B KITCHEN 1.59 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4677000 22 OZ FAB A/B KITCHEN - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4678000 22 OZ FAB ALL PURP 1.59 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4680000 22 OZ FAB ALL PURP - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4681000 22 OZ FAB W/BLEACH 1.59 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4683000 22 OZ FAB W/BLEACH - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4733000 22 OZ TILE ACTION MLDW STAIN - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4734000 22 OZ TILE ACTION MLDW STAIN - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4735000 22 OZ TILE ACTION SCUM REMOVER - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4736000 22 OZ TILE ACTION SCUM REMOVER - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4670000 32 OZ PLUMBER'S AID 1.99 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4671000 32 OZ PLUMBER'S AID - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4049200 32 OZ XTRA LAUNDRY 1.99 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4049100 32 OZ XTRA - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4049500 32 OZ XTRA W/BLEACH 1.99 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4049400 32 OZ XTRA W/BLEACH - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4022000 32 OZ NNF FRESH SCENT 1.79 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4023000 32 OZ NNF FRESH SCENT - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4023300 32 OZ MT FRESH 1.79 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4023400 32 OZ MT FRESH - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4011100 32 OZ FAB ALL PURPOSE CLEANER SPRAYER [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4010110 32 OZ FAB ALL PURPOSE CLEANER - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4011110 32 OZ FAB ANTIBACTERIAL KITCHEN SPRAYER [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4010111 32 OZ FAB ANTIBACTERIAL KITCHEN - BACK LABEL. [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4011111 32 OZ FAB RUG & UPHOLSTERY SPRAYER [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4010112 32 OZ FAB RUG & UPHOLSTERY - BACK LABEL. [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4011112 32 OZ FAB ALL PURPOSE W/BLEACH SPRAYER [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4010113 32 OZ FAB ALL PURPOSE W/BLEACH - BACK LABEL. [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4011113 32 OZ TILE ACTION MILDEW SPRAYER [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4010114 32 OZ TILE ACTION MILDEW - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4011114 32 OZ TILE ACTION SOAP SCUM SPRAYER [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4010115 32 OZ TILE ACTION SOAP SCUM - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4011115 32 OZ XTRA EASY LAUNDRY STAIN REM. SPRAYER [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4010116 32 OZ XTRA EASY LAUNDRY STAIN REM. - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4011116 32 OZ TOUCH OF GLASS W/AMMONIA SPRAYER [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4010117 32 OZ TOUCH OF GLASS W/AMMONIA - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4011117 32 OZ TOUCH OF GLASS SURFACE SPRAYER [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4010118 32 OZ TOUCH OF GLASS SURFACE - BACK LABEL. [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4011118 32 OZ SWISS PINE KITCHEN & BATHROOM SPRAYER [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4010119 32 OZ SWISS PINE KITCHEN & BATHROOM - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4119200 60 OZ NNF ULTRA VPE - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4119300 60 OZ NNF ULTRA VPE - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4119400 60 OZ NNF ULTRA MT FRESH - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4119500 60 OZ NNF ULTRA MT FRESH - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4162000 64 OZ XTRA LAUNDRY 2.79 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4164000 64 OZ XTRA LAUNDRY VPE - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4163000 64 OZ XTRA LAUNDRY - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4175700 64 OZ XTRA LIQUID NP. ENG/FRENCH - FRONT LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4175800 64 OZ XTRA LIQUID ENG/FRENCH - BACK LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4166000 64 OZ XTRA W/BLEACH 2.79 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4176000 64 OZ XTRA W/BLEACH VPE - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4167000 64 OZ XTRA W/BLEACH - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4180000 64 OZ XTRA W/BLEACH VPE - ENG/FRENCH - FRONT LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4181000 64 OZ XTRA W/BLEACH - ENG/FRENCH - BACK LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4175100 64 OZ NNF FRESH SCENT 2.49 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4175300 64 OZ NNF FRESH SCENT VPE - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4175200 64 OZ NNF FRESH SCENT - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4155200 64 OZ NNF FRESH SCENT NP - ENG/FRENCH - FRONT LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4155300 64 OZ NNF FRESH SCENT - ENG/FRENCH - BACK LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4175400 64 OZ MT FRESH 2.49 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4175600 64 OZ MT FRESH VPE - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4175500 64 OZ MT FRESH - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4124000 80 OZ DISH PLUS GEL 3.99 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4194000 80 OZ DISH PLUS GEL VPE - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4125000 80 OZ DISH PLUS GEL - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4118700 100 OZ XTRA VPE - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4118800 100 OZ XTRA VPE - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4119000 100 OZ XTRA W/BLEACH VPE - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4119100 100 OZ XTRA W/BLEACH VPE - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4129500 120 OZ NNF ULTRA VPE -FRONT LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4129700 120 OZ NNF ULTRA $8.99 - FRONT LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4129600 120 OZ NNF ULTRA - BACK LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4136620 128 OZ XTRA ENZYME 5.79 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4136615 128 OZ XTRA ENZYME NP - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4136700 128 OZ XTRA PLUS ENZYME - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4132000 128 OZ XTRA 4.99 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4134000 128 OZ XTRA VPE - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4133000 128 OZ XTRA - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4148100 128 OZ XTRA W/BLEACH ENZYME 5.79 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4148000 128 OZ XTRA W/BLEACH ENZYME NP - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4149000 128 OZ XTRA W/BLEACH ENZYME - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4140000 128 OZ XTRA W/BLEACH 4.99 - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4142000 128 OZ XTRA W/BLEACH VPE - FRONT LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4141000 128 OZ XTRA W/BLEACH - BACK LABEL [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4211200 128 OZ NNF 3.99 - FRONT LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4211400 128 OZ NNF VPE - FRONT LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4211300 128 OZ NNF - BACK LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4154100 128 OZ MT FRESH 3.99 - FRONT LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4154200 128 OZ MT FRESH VPE - FRONT LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4155100 128 OZ MT FRESH - BACK LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4129300 192 OZ NNF FRESH SCENT - FRONT LABEL - (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4129400 192 OZ NNF FRESH SCENT - BACK LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4000043 200 OZ XTRA ULTRA - FRONT LABEL - (WHEEL) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4000047 200 OZ XTRA ULTRA $8.99 - FRONT LABEL - (WHEEL) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4000061 200 OZ XTRA ULTRA - BACK LABEL - (WHEEL) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4000045 200 OZ XTRA ULTRA W/BLEACH - FRONT LABEL - (WHEEL) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4000048 200 OZ XTRA ULTRA W/B $8.99 - PP- FRONT LABEL - (WHEEL) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4000049 200 OZ XTRA ULTRA W/BLEACH - BACK LABEL - (WHEEL) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4136710 200 OZ XTRA LIQUID - FRONT LABEL - (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4136800 200 OZ XTRA LIQUID - BACK LABEL - (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4136900 200 OZ XTRA LIQUID W/BLEACH - FRONT LABEL - (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4137000 200 OZ XTRA LIQUID W/BLEACH - BACK LABEL - (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4129800 200 OZ NNF FRESH SCENT - FRONT LABEL - (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
4129900 200 OZ NNF FRESH SCENT - BACK LABEL (NEW) [*] [*] [*] [*]
- ------------ ---------- ------------------------------------------------------------- ---------- -------- ------------ -----------
*[*]
*[*]
** [*]
*** [*]
[*]
NOTE: [*]
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Company's Form 10-Q for the quarter ended June 30, 1999, and is qualified in
its entirety by reference to such financial statements.
USA DETERGENTS, INC. AND SUBSIDIARIES
Appendix A to Item 601(c) of Regulation S-K
Six Months ended June 30, 1999
(in thousands, except per share data)
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> JUN-30-1999
<CASH> 634
<SECURITIES> 2,002
<RECEIVABLES> 21,680
<ALLOWANCES> 1,025
<INVENTORY> 17,300
<CURRENT-ASSETS> 49,450
<PP&E> 61,959
<DEPRECIATION> 17,009
<TOTAL-ASSETS> 97,964
<CURRENT-LIABILITIES> 40,152
<BONDS> 0
0
0
<COMMON> 138
<OTHER-SE> 19,383
<TOTAL-LIABILITY-AND-EQUITY> 97,964
<SALES> 118,166
<TOTAL-REVENUES> 118,166
<CGS> 77,843
<TOTAL-COSTS> 35,980
<OTHER-EXPENSES> (113)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,150
<INCOME-PRETAX> 2,306
<INCOME-TAX> 35
<INCOME-CONTINUING> 2,271
<DISCONTINUED> 0
<EXTRAORDINARY> 64
<CHANGES> 0
<NET-INCOME> 2,207
<EPS-BASIC> .16
<EPS-DILUTED> .16
</TABLE>
