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UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION

Washington,D.C.20549__________________

FORM10-K__________________

☑AnnualreportpursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934

forthefiscalyearendedJune30,2016OR

☐ TransitionreportpursuanttoSection13or15(d)oftheSecuritiesExchangeActof1934

forthetransitionperiodfrom__________to__________.Commissionfilenumber:1-07151

THECLOROXCOMPANY(Exactnameofregistrantasspecifiedinitscharter)

Delaware 31-0595760

(Stateorotherjurisdictionof (I.R.S.Employerincorporationororganization) IdentificationNumber)

1221Broadway,Oakland,California94612-1888

(Addressofprincipalexecutiveoffices)(ZIPcode)

(510)271-7000(Registrant’stelephonenumber,includingareacode)

SecuritiesregisteredpursuanttoSection12(b)oftheAct:

Titleofeachclass Nameofeachexchangeonwhichregistered

CommonStock–$1.00parvalue NewYorkStockExchange

SecuritiesregisteredpursuanttoSection12(g)oftheAct:None

(Titleofclass)

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes☑.No☐.

IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.Yes☐.No☑.

Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes☑.No☐.

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuchfiles).Yes☑.No☐.

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IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-K(§229.405ofthischapter)isnotcontainedherein,andwillnotbecontained,tothebestofregistrant’sknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.☑.

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,orasmallerreportingcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler”and“smallerreportingcompany”inRule12b-2oftheExchangeAct.(Checkone):

Largeacceleratedfiler☑ Acceleratedfiler☐ Non-acceleratedfiler☐ Smallerreportingcompany☐

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).Yes☐No☑.

Theaggregatemarketvalueoftheregistrant’scommonstockheldbynon-affiliatesasofDecember31,2015(thelastbusinessdayoftheregistrant’smostrecentlycompletedsecondfiscalquarter)wasapproximately$16.4billion.

AsofJuly29,2016,therewere129,469,454sharesoftheregistrant’scommonstockoutstanding.

DocumentsIncorporatedbyReference:

Portionsoftheregistrant’sdefinitiveproxystatementforthe2016AnnualMeetingofStockholders(the“ProxyStatement”),tobefiledwithin120daysafterJune30,2016,areincorporatedbyreferenceintoPartIII,Items10through14ofthisAnnualReportonForm10-K.

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THECLOROXCOMPANYANNUALREPORTONFORM10-K

FORTHEFISCALYEARENDEDJUNE30,2016TABLEOFCONTENTS

PagePartI Item1. Business 1

Item1.A. RiskFactors 5Item1.B. UnresolvedStaffComments 18Item2. Properties 18

Item3. LegalProceedings 19Item4. MineSafetyDisclosures 19

PartII Item5. MarketforRegistrant’sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities 22

Item6. SelectedFinancialData 23Item7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 23Item7.A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 23Item8. FinancialStatementsandSupplementaryData 23Item9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure 23Item9.A. ControlsandProcedures 23

Item9.B. OtherInformation 23PartIII Item10. Directors,ExecutiveOfficersandCorporateGovernance 24

Item11. ExecutiveCompensation 24Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelated

StockholderMatters 24Item13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence 24Item14. PrincipalAccountingFeesandServices 24

PartIV Item15. ExhibitsandFinancialStatementSchedules 25Signatures 30

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PARTI

ThisAnnualReportonForm10-KforthefiscalyearendedJune30,2016(thisReport),includingtheexhibitsheretoandtheinformationincorporatedbyreferenceherein,contains“forward-lookingstatements”withinthemeaningofSection27AoftheSecuritiesActof1933,asamended(theSecuritiesAct),andSection21EoftheSecuritiesExchangeActof1934,asamended(theExchangeAct),andsuchforward-lookingstatementsinvolverisksanduncertainties.Exceptforhistoricalinformation,statementsaboutfuturevolume,sales,foreigncurrencies,costs,costsavings,margin,earnings,earningspershare,dilutedearningspershare,foreigncurrencyexchangerates,cashflows,plans,objectives,expectations,growthorprofitability,areforward-lookingstatementsbasedonmanagement’sestimates,assumptionsandprojections.Wordssuchas“could,”“may,”“expects,”“anticipates,”“targets,”“goals,”“projects,”“intends,”“plans,”“believes,”“seeks,”“estimates,”“predicts”andvariationsonsuchwords,andsimilarexpressionsthatreflectourcurrentviewswithrespecttofutureeventsandoperationalandfinancialperformance,areintendedtoidentifysuchforward-lookingstatements.Theseforward-lookingstatementsareonlypredictions,subjecttorisksanduncertainties,andactualresultscoulddiffermateriallyfromthosediscussedbelow.Importantfactorsthatcouldaffectperformanceandcauseresultstodiffermateriallyfrommanagement’sexpectationsaredescribedinthesectionsentitled“RiskFactors”and“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”inthisReport,asupdatedfromtimetotimeintheCompany’sU.S.SecuritiesandExchangeCommission(SEC)filings.

TheCompany’sforward-lookingstatementsinthisReportarebasedonmanagement’scurrentviewsandassumptionsregardingfutureeventsandspeakonlyasoftheirdates.TheCompanyundertakesnoobligationtopubliclyupdateorreviseanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise,exceptasrequiredbythefederalsecuritieslaws.

InthisReport,unlessthecontextrequiresotherwise,theterms“theCompany”and“Clorox”refertoTheCloroxCompanyanditssubsidiaries.

ITEM1.BUSINESS

OverviewofBusiness

TheCloroxCompanyisaleadingmultinationalmanufacturerandmarketerofconsumerandprofessionalproductswithfiscalyear2016netsalesof$5.8billionandapproximately8,000employeesworldwideasofJune30,2016.Cloroxsellsitsproductsprimarilythroughgroceryandmassretailoutlets,e-commercechannels,wholesaledistributorsandmedicalsupplydistributors.Cloroxmarketssomeofthemosttrustedandrecognizedconsumerbrandnames,includingitsnamesakebleachandcleaningproducts,Pine-Sol®cleaners,Liquid-Plumr®clogremovers,Poett®homecareproducts,FreshStep®catlitter,Glad®bags,wrapsandcontainerproducts,Kingsford®charcoal,RenewLife®digestivehealthproducts,HiddenValley®dressingsandsauces,Brita®water-filtrationproducts,andBurt’sBees®naturalpersonalcareproducts.TheCompanyalsomarketsbrandsthroughprofessionalserviceschannels,includinginfectioncontrolproductsforthehealthcareindustryunderCloroxHealthcare®andCloroxCommercialSolutions®.Morethan80%oftheCompany’ssalesaregeneratedfrombrandsthatholdtheNo.1orNo.2marketsharepositionsintheircategories.TheCompanywasfoundedinOakland,Californiain1913andisincorporatedinDelaware.

TheCompany’s2020strategyfocusesondeliveringlong-term,profitablegrowthandtotalshareholderreturn.TheCompany’slong-termfinancialgoalsincludeannualnetsalesgrowthof3-5%,annualEBITmargingrowthof25-50basispointsandannualfreecashflowof10-12%ofnetsales.

OnMay2,2016,theCompanyacquired100percentofthedigestivehealthcompanyRenewLifefor$290million.ThepurchaseoftheRenewLifebusinessalignswiththeCompany’sacquisitionstrategytotargetleadingbrandswithattractivemarginsinhigh-growthcategories,particularlyinhealthandwellness.ResultsforRenewLife’sdomesticbusinessarereflectedintheHouseholdreportablesegmentandresultsforRenewLife’sinternationalbusinessarereflectedintheInternationalreportablesegment.IncludedintheCompany’sresultsforfiscalyear2016was$21millionofRenewLife’sglobalnetsales.

Infiscalyear2016,theCompanydeliveredstrongresultsincluding2%netsalesgrowthandan8%increaseindilutedearningspershare(EPS)fromcontinuingoperations,despiteahighlycompetitiveenvironmentintheU.S.andadifficultmacro-environment,includingunfavorableforeignexchangeratesandchallengingeconomiesinInternationalmarkets.

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TheCompanyfocusedondrivingsalesgrowthinitsU.S.business,leveragingincrementaldemandbuildinginvestmentsandinnovation,todrivecategorygrowthandmarketshareimprovements.Inparticular,theCompanylaunchednewproductsinmanycategoriesinfiscalyear2016,includingtheBrita®Infinitypitcher,Burt'sBees®lipsticks,CloroxHealthcare®nasalantisepticswabs,CloroxHealthcare®Optimum-UVEnlight,FreshStep®withFebreze™,Glad®DualDefense™trashbags,HiddenValley®Greekyogurtdressing.

Ininternationalmarkets,theCompanyfocusedonanumberofmeasurestoaddresseconomicchallengesexperiencedinfiscalyear2016.Significantcurrencydeclinesacrossthemajorityofcountriesandhighinflationinseveralmarketswerepartiallyoffsetbypriceincreasesandcostsavingsinitiatives.Despitethesechallenges,theCompany’sinternationalbusinesscontinuedtoplayanimportantstrategicrole,withNo.1andNo.2brandsinmultiplecountriesandstronggrowthoftheBurt’sBees®brandinternationally.

Infiscalyear2016,theCompanyrepurchasedapproximately2millionsharesofitscommonstockfor$254million,paid$398millionindividendstostockholdersandannounceda4%increaseinitsquarterlydividendfromprioryear,payableinAugust2016.

Finally,theCompanycontinueditscommitmenttocorporateresponsibilitybymaintainingstrongandtransparentenvironmental,socialandgovernancepractices.TheCompanyremainedcommittedtoloweringwaterandenergyuse,solidwastetolandfillandgreenhousegasemissionsaspartofits2020operationalfootprintreductiongoals.TheCompanywasrecognizedasoneofthetopcorporatecitizensbyCorporateResponsibilitymagazineandnamedasoneofthegreenestcompaniesinthe2016NewsweekGreenRankings.Infiscalyear2016,togetherTheCloroxCompanyFoundationandTheBurt’sBeesGreaterGoodFoundationawardedapproximately$5millionincashgrants,andtheCompanymadeproductdonationswithafairmarketvalueofapproximately$8millionandcontributedmorethan$1milliontodeservingnonprofitsthroughcausemarketingprogramsforsocialandcharitablecauses.

Infiscalyear2017,Cloroxanticipatesongoingchallengesthatmayimpactitssalesandmargins,includingunfavorableforeigncurrencyexchangerates,particularlyinArgentina,andacontinuationofchallenginginternationaleconomies.Inaddition,theCompanyismonitoringanticipatedslowerU.S.categorygrowth,drivenprimarilybyexpectedcompetitiveactivityandchangestocommoditycostsandmanufacturingandlogisticscosts.

Foradditionalinformationonrecentbusinessdevelopments,see“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations,”inExhibit99.1,incorporatedhereinbyreference.

FinancialInformationAboutOperatingSegmentsandPrincipalProducts

TheCompanyoperatesthroughstrategicbusinessunitsthatareaggregatedintofourreportablesegments:Cleaning,Household,LifestyleandInternational.Thefourreportablesegmentsconsistofthefollowing:

● Cleaningconsistsoflaundry,homecareandprofessionalproductsmarketedandsoldintheUnitedStates.Productswithinthissegmentincludelaundryadditives,includingbleachproductsundertheClorox®brandandClorox2®stainfighterandcolorbooster;homecareproducts,primarilyundertheClorox®,Formula409®,Liquid-Plumr®,Pine-Sol®,S.O.S®andTilex®brands;naturallyderivedproductsundertheGreenWorks®brand;andprofessionalcleaninganddisinfectingproductsundertheClorox®,Dispatch®,Aplicare®,HealthLink®andCloroxHealthcare®brands.

● Householdconsistsofcharcoal,catlitter,digestivehealthproductsandbags,wrapsandcontainerproductsmarketedandsoldintheUnitedStates.ProductswithinthissegmentincludecharcoalproductsundertheKingsford®andMatchLight®brands;catlitterproductsundertheFreshStep®,ScoopAway®

andEverClean®brands;digestivehealthproductsundertheRenewLife®brand;andbags,wrapsandcontainersundertheGlad®brand.● Lifestyleconsistsoffoodproducts,water-filtrationsystemsandfiltersandnaturalpersonalcareproductsmarketedandsoldintheUnitedStates.Products

withinthissegmentincludedressingsandsauces,primarilyundertheHiddenValley®,KCMasterpiece®andSoyVay®brands;water-filtrationsystemsandfiltersundertheBrita®brand;andnaturalpersonalcareproductsundertheBurt’sBees®brand.

● InternationalconsistsofproductssoldoutsidetheUnitedStates.Productswithinthissegmentincludelaundry,homecare,water-filtration,digestivehealthproducts,charcoalandcatlitterproducts,dressingsandsauces,bags,wrapsandcontainersandnaturalpersonalcareproducts,primarilyundertheClorox®

,Glad®,PinoLuz®,Ayudin®,Limpido®,Clorinda®,Poett®,Mistolin®,Lestoil®,BonBril®,Brita®,GreenWorks®,Pine-Sol®,AguaJane®

,Chux®,RenewLife®,Kingsford®,FreshStep®,ScoopAway®,EverClean®,KCMasterpiece®,HiddenValley®andBurt’sBees®brands.

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ThreeoftheCompany’sproductlineshaveaccountedfor10%ormoreofconsolidatednetsalesduringeachofthepastthreefiscalyears.Infiscalyears2016,2015and2014,salesofliquidbleachrepresentedapproximately13%,14%and13%oftheCompany’sconsolidatednetsales,respectively,approximately25%,26%,and26%ofnetsalesintheCleaningsegmentforeachsuchyears,respectively,andapproximately27%,27%and28%ofnetsalesintheInternationalsegment,respectively.Salesoftrashbagsrepresentedapproximately13%,14%and13%oftheCompany’sconsolidatednetsalesineachofthefiscalyears2016,2015and2014,respectively,andapproximately37%,38%and36%ofnetsalesintheHouseholdsegment,respectively,foreachsuchyears.Salesofcharcoalrepresentedapproximately11%oftheCompany’sconsolidatednetsalesandapproximately34%ofnetsalesintheHouseholdsegmentinfiscalyears2016,2015and2014.

InformationabouttheresultsofeachoftheCompany’sreportablesegmentsforthelastthreefiscalyearsandtotalassetsasoftheendofthelastthreefiscalyears,reconciledtotheconsolidatedamounts,issetforthbelow.Certainnon-allocatedadministrativecosts,interestincome,interestexpenseandvariousothernon-operatingincomeandexpensesarereflectedinCorporate.Foradditionalinformation,refertotheinformationsetforthunderthecaption“SegmentResultsfromContinuingOperations”in“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations,”inExhibit99.1.

(Dollarsinmillions)FiscalYear Cleaning Household Lifestyle International Corporate

TotalCompany

NetSales 2016$1,912$1,862$990$ 997$ - $5,761 2015 1,824 1,794 950 1,087 - 5,655

2014 1,776 1,709 936 1,093 - 5,514Earnings(losses)from 2016 511 428 251 66 (273) 983continuingoperationsbefore 2015 445 375 257 79 (235) 921Incometaxes 2014 428 326 258 99 (227) 884Totalassets 2016 883 1,092 880 1,057 606 4,518

2015 876 725 860 1,057 646 4,164

PrincipalMarketsandMethodsofDistribution

IntheUnitedStates,mostoftheCompany’sproductsarenationallyadvertisedandsoldtomassretail-outlets,warehouseclubs,anddollar,militaryandothertypesofretailstoresprimarilythroughadirectsalesforce,andtogrocerystoresandgrocerywholesalersprimarilythroughacombinationofdirectsalesteamsandanetworkofbrokers.TheCompanysellsinstitutional,janitorial,andfood-serviceversionsofmanyofitsproductsthroughdistributorsusinganetworkofbrokers,andsellshealthcareproductsthroughadirectsalesforceandmedicalsupplydistributors.OutsidetheUnitedStates,theCompanysellsproductstotheretailtradethroughsubsidiaries,licensees,distributorsandjoint-venturearrangementswithlocalpartners.Additionally,theCompanysellsmanyofitsproductsthroughonlineretailers.

FinancialInformationAboutForeignandDomesticOperations

FordetailedfinancialinformationabouttheCompany’sforeignanddomesticoperations,includingnetsalesandproperty,plantandequipment,net,bygeographicarea,seetheNotestoConsolidatedFinancialStatementsinExhibit99.1.

SourcesandAvailabilityofRawMaterials

TheCompanypurchasesrawmaterialsfromnumerousunaffiliateddomesticandinternationalsuppliers,someofwhicharesole-sourceorsingle-sourcesuppliers.InterruptionsinthedeliveryofthesematerialscouldadverselyimpacttheCompany.KeyrawmaterialsusedbytheCompanyincluderesin,diesel,sodiumhypochlorite,corrugatedcardboardandagriculturalcommodities.Sufficientrawmaterialswereavailableduringfiscalyear2016.Costsforresinanddieseldecreasedinfiscalyear2016.However,costsformanymaterialscontinuedtoincreaseamidvolatilityandinflationinsomekeygeographicandcommoditymarkets,whichtheCompanyexpectstocontinueinfiscalyear2017.TheCompanygenerallyutilizessupplyandforward-purchasecontractstohelpensureavailabilityandhelpmanagethevolatilityofthepricingofrawmaterialsneededinitsoperations.However,theCompanyisnonethelesshighlyexposedtochangesinthepricesofcommoditiesusedasrawmaterialsinthemanufacturingofitsproducts.Forfurtherinformationregardingtheimpactofchangesincommodityprices,see“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”inExhibit99.1and“RiskFactors–Volatilityandincreasesinthecostsofrawmaterials,energy,transportation,laborandothernecessarysuppliesorserviceshaveharmed,andinthefuturemayharm,theCompany’snetearningsandcashflow”inItem1.A.

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PatentsandTrademarks

MostoftheCompany’sbrandnameconsumerproductsareprotectedbyregisteredtrademarks.TheCompany’sbrandnamesandtrademarksarehighlyimportanttoitsbusiness,andtheCompanyvigorouslyprotectsitstrademarksfromapparentinfringements.MaintenanceofbrandequityvalueiscriticaltotheCompany’ssuccess.TheCompany’spatentrightsarealsomaterialtoitsbusinessandareasserted,whereappropriate,againstapparentinfringements.

Seasonality

MostsalesoftheCompany’scharcoalproductsoccurinthefirstsixmonthsofeachcalendaryear.AmoderateseasonalitytrendalsooccursinthenetsalesoftheCompany’sBurt’sBees®naturalpersonalcareproducts,withslightlymorethanhalfoftheannualnetsalesoccurringduringthemonthsofOctoberthroughMarch.Short-termborrowingsmaybeusedtofundinventoriesofthoseproductsintheoffseason.

Customers

NetsalestotheCompany’slargestcustomer,WalmartStores,Inc.anditsaffiliates,were27%,26%and27%ofconsolidatednetsalesforeachofthefiscalyearsendedJune30,2016,2015and2014,respectively,andoccurredineachoftheCompany’sreportablesegments.Noothercustomersaccountedformorethan10%ofconsolidatednetsalesinanyofthesefiscalyears.Duringfiscalyears2016,2015and2014,theCompany’sfivelargestcustomersaccountedfor46%,45%,and45%ofitsconsolidatednetsalesforeachofthethreefiscalyears,respectively.

Competition

Themarketsforconsumerproductsarehighlycompetitive.TheCompany’sproductscompetewithothernationallyadvertisedbrandsandwith“privatelabel”brandswithineachcategory.Competitioncomesfromsimilarandalternativeproducts,someofwhichareproducedandmarketedbymajormultinationalornationalcompanieshavingfinancialresourcesgreaterthanthoseoftheCompany.TheCompany’sproductsgenerallycompeteonthebasisofproductperformance,brandrecognition,andprice.Anewlyintroducedconsumerproduct(whetherimprovedornewlydeveloped)usuallyencountersintensecompetitionrequiringsubstantialexpendituresforadvertising,salespromotionandtrademerchandisingsupport.Ifaproductgainsconsumeracceptance,ittypicallyrequirescontinuedadvertisingandpromotionalsupportandongoingproductimprovementstomaintainitsrelativemarketposition.ForfurtherinformationregardingtheintensecompetitiontheCompanyfaces,see“RiskFactors–TheCompanyfacesintensecompetitioninitsmarkets,whichcouldleadtoreducednetsales,netearningsandcashflow”inItem1.A.

ResearchandDevelopment

TheCompanyconductsresearchanddevelopmentprimarilyatitsfacilitylocatedinPleasanton,CA,whichtheCompanyhasleasedsince2011.ThePleasantonfacilityconsistsofapproximately357,000squarefeetofleasedspace,utilizingstate-of-the-artlabsandopenworkspacestoencouragecreativity,collaborationandinnovation.InadditiontotheleasedfacilityinPleasanton,CA,theCompanyconductsresearchanddevelopmentactivitiesinMeriden,CT;Willowbrook,IL;Durham,NC;Cincinnati,OH;andBuenosAires,Argentina.

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TheCompanydevotessignificantresourcesandattentiontoproductdevelopment,processtechnologyandconsumerinsightresearchtodevelopcommerciallyviableconsumer-preferredproductswithinnovativeanddistinctivefeatures.TheCompanyincurredexpensesof$141million,$136millionand$125millioninfiscalyears2016,2015and2014,respectively,ondirectresearchactivitiesrelatingtothedevelopmentofnewproductsand/ortheimprovementofexistingproducts.Inaddition,theCompanyobtainstechnologiesfromthirdpartiesforuseinitsproducts.RoyaltiesrelatingtosuchtechnologiesarereflectedintheCompany’sCostofproductssold.ForfurtherinformationregardingtheCompany’sresearchanddevelopmentcosts,see“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”inExhibit99.1.

EnvironmentalMatters

Forinformationregardingnoncapitalexpendituresrelatedtoenvironmentalmatters,seethediscussionsbelowunder“RiskFactors–EnvironmentalmatterscreatepotentialliabilitiesthatcouldadverselyaffecttheCompany’sresultsofoperationsorfinancialcondition”inItem1.A.Nomaterialcapitalexpendituresrelatingtoenvironmentalcompliancearepresentlyanticipated.

NumberofPersonsEmployed

AsofJune30,2016,theCompanyemployedapproximately8,000people.

AvailableInformation

TheCompany’sAnnualReportonForm10-K,QuarterlyReportsonForm10-QandCurrentReportsonForm8-KandamendmentstothosereportsfiledorfurnishedpursuanttoSections13(a)or15(d)oftheExchangeActareavailableontheCompany’swebsite,freeofcharge,assoonasreasonablypracticableafterthereportsareelectronicallyfiledwithorfurnishedtotheSEC.ThesereportsareavailableatTheCloroxCompany.comunderInvestors/FinancialReporting/SECFilings.InformationrelatingtocorporategovernanceatClorox,includingtheCompany’sCodeofConduct,theCloroxCompanyBoardofDirectorsGovernanceGuidelinesandBoardCommitteechartersfortheManagementDevelopmentandCompensationCommittee,theAuditCommittee,andtheNominatingandGovernanceCommittee,isavailableatTheCloroxCompany.comunderCorporateResponsibility/Performance/CorporateGovernanceorhttp://www.thecloroxcompany.com/corporate-responsibility/performance/corporate-governance.TheCompanywillprovideanyoftheforegoinginformationwithoutchargeuponwrittenrequesttoCorporateCommunications,TheCloroxCompany,1221Broadway,Oakland,CA94612-1888.TheinformationcontainedontheCompany’swebsiteisnotincludedasapartof,orincorporatedbyreferenceinto,thisReport.

ITEM1.A.RISKFACTORS

Therisksanduncertaintiessetforthbelow,aswellasotherfactorsdescribedelsewhereinthisReportorinotherfilingsbytheCompanywiththeSEC,couldadverselyaffecttheCompany’sbusiness,financialconditionandresultsofoperations.AdditionalrisksanduncertaintiesthatarenotcurrentlyknowntotheCompanyorthatarenotcurrentlybelievedbytheCompanytobematerialmayalsoharmtheCompany’sbusinessoperationsandfinancialresults.

TheCompanyfacesintensecompetitioninitsmarkets,whichcouldleadtoreducednetsales,netearningsandcashflow.

TheCompanyfacesintensecompetitionfromconsumerproductcompaniesbothintheUnitedStatesandinitsinternationalmarkets.MostoftheCompany’sproductscompetewithotherwidelyadvertisedbrandswithineachproductcategory.TheCompanyalsofacescompetitionfromretailers,includingclubstores,grocery,dollarstores,massmerchandisersandinternet-basedretailers,whichareincreasinglyoffering“privatelabel”brandsthataretypicallysoldatlowerpricesandcompetewiththeCompany’sproductsincertaincategories.Duringtimesofeconomicuncertainty,consumerstendtopurchasemore“privatelabel”orothereconomybrands.Increasedpurchasesof“privatelabel”productscouldreducenetsalesoftheCompany’shigher-marginproductsortherecouldbeashiftinproductmixtolower-marginofferings.

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TheCompany’sproductsgenerallycompeteonthebasisofproductperformance,brandrecognition,andprice.Advertising,promotion,merchandisingandpackagingalsohavesignificantimpactsonconsumerpurchasingdecisions,andtheCompanyisincreasinglyusingdigitalmediamarketingandpromotionalprogramstoreachconsumers.Anewlyintroducedconsumerproduct(whetherimprovedornewlydeveloped)usuallyencountersintensecompetitionrequiringsubstantialexpendituresforadvertising,salespromotionandtrademerchandising.Ifaproductgainsconsumeracceptance,ittypicallyrequirescontinuedadvertising,promotionalsupportandproductimprovementstomaintainitsrelativemarketposition.IftheCompany’sadvertising,marketingandpromotionalprograms,includingitsuseofdigitalmediatoreachconsumers,arenoteffectiveoradequate,theCompany’snetsalesmaybenegativelyimpacted.

SomeoftheCompany’scompetitorsarelargerthantheCompanyandhavegreaterfinancialresources.Thesecompetitorsmaybeabletospendmoreaggressivelyonadvertisingandpromotionalactivities,introducecompetingproductsmorequicklyandrespondmoreeffectivelytochangingbusinessandeconomicconditionsthantheCompanycan.Inaddition,theCompany’scompetitorsmayattempttogainmarketsharebyofferingproductsatpricesatorbelowthosetypicallyofferedbytheCompany.CompetitiveactivitymayrequiretheCompanytoincreaseitsspendingonadvertisingandpromotionsand/orreduceprices,whichcouldleadtoreducednetearningsandadverselyaffectgrowth.

Uncertainworldwide,regionalandlocaleconomicconditionsandfinancialmarketvolatilitymaynegativelyimpacttheCompanyandconsumersofitsproducts,whichwouldnegativelyaffecttheCompany’sfinancialperformanceandliquidity.

AlthoughtheCompanycontinuestodevotesignificantresourcestosupportitsbrands,uncertaineconomicconditionsmaycontinuetonegativelyaffectconsumerdemandfortheCompany’sproducts.Consumersmayalsobesensitivetoeconomicuncertaintyorunfavorableeconomicconditionsandreducediscretionaryspending,whichmayleadtoreducednetsalesorcauseashiftintheCompany’sproductmixfromhigher-margintolower-marginproducts.Consumersmayincreasepurchasesoflower-pricedor“privatelabel”products,andtheCompany’scompetitorsmayincreaselevelsofadvertisingandpromotionalactivityforlower-pricedproductsastheyseektomaintainsalesvolumesduringuncertaineconomictimes,whichmaynegativelyimpacttheCompany’snetsales.

Globalmarketscontinuedtoexperiencesignificantdisruptionsduringfiscalyear2016,andcontinuingvolatilitycouldcontinuetoharmtheCompany’sbusiness.Inaddition,financialmarketvolatilitycouldadverselyaffecttheCompany’sliquidityandcapitalresources.UncertaineconomicconditionsandfinancialmarketvolatilitymayalsoadverselyaffectthefinancialconditionoftheCompany’scustomers,suppliersandotherbusinesspartners.Ifcustomers’financialconditionsareseverelyaffected,customersmayreducetheirpurchasesoftheCompany’sproductsortheCompanymaynotbeabletocollectaccountsreceivable,eachofwhichcouldhaveamaterialadverseimpactontheCompany’sbusinessoperationsorfinancialresults.

Salesgrowthobjectivesmaybedifficulttoachieve,andpriceincreases,marketandcategorydeclinesandchangestotheCompany’sproductandgeographicmixmayadverselyimpacttheCompany’sfinancialresults.

AlargepercentageoftheCompany’srevenuescomesfrommaturemarketsthataresubjecttohighlevelsofcompetition.Duringfiscalyear2016,approximately83%oftheCompany’snetsalesweregeneratedinU.S.markets.TheCompany’sabilitytoachievesalesgrowthdependsonitsabilitytodrivegrowththroughinnovation,expansionintonewproductcategories,channelsandcountries,investmentinitsestablishedbrandsandenhancedmerchandisinganditsabilitytocapturemarketsharefromcompetitors.IftheCompanyisunabletoincreasemarketshareinexistingproductlines,developproductimprovements,undertakesales,marketingandadvertisinginitiativesthatgrowitsproductcategoriesand/ordevelop,acquireorsuccessfullylaunchnewproductsorbrands,itmaynotachieveitssalesgrowthobjectives.EvenwhentheCompanyissuccessfulinincreasingmarketsharewithinparticularproductcategories,adeclineinthemarketsforsuchproductcategorieshashadandcancontinuetohaveanegativeimpactontheCompany’sfinancialresults.

Inaddition,changestothemixofproductstheCompanysells,aswellasthemixofcountriesinwhichitsproductsaresold,canadverselyimpacttheCompany’snetsales,profitabilityandcashflow.TheCompany’sfinancialoutlookassumesacertainvolumeandproductmix,andifactualresultsvaryfromthisprojectedvolumeandproductmix,theCompany’sbusinessoperationsandfinancialresultscouldbenegativelyaffected.

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Volatilityandincreasesinthecostsofrawmaterials,energy,transportation,laborandothernecessarysuppliesorserviceshaveharmed,andinthefuturemayharm,theCompany’snetearningsandcashflow.

Volatilityandincreasesinthecostsofrawmaterials,includingresin,sodiumhypochlorite,linerboard,soybeanoil,solvent,corrugatedcardboardandotherchemicalsandagriculturalcommodities,orincreasesinthecostofenergy,transportation,laborandothernecessarysuppliesorserviceshaveharmed,andinthefuturemayharm,theCompany’sprofitsandoperatingresults.Wedistributeourproductsandreceiverawmaterialsprimarilybyrailandtruck.Reducedavailabilityofrailortruckingcouldcauseustoincurunanticipatedexpensesandimpairourabilitytodistributeourproductsorreceiveourrawmaterialsinatimelymanner.

TheCompanybelievescommodityandothercostincreasesarepossibleinthefuture.IfsuchincreasesoccurorexceedtheCompany’sestimatesandtheCompanyisnotabletoincreasethepricesofitsproductsorachievecostsavingstooffsetsuchcostincreases,itsprofitsandoperatingresultswillbeharmed.Inaddition,iftheCompanyincreasesthepricesofitsproductsinresponsetoincreasesinthecostofcommodities,andcommoditycostsdecline,theCompanymaynotbeabletosustainitspriceincreases.Sustainedpriceincreasesmayleadtodeclinesinvolumeascompetitorsmaynotadjusttheirpricesorcustomersmaydecidenottopaythehigherprices,whichcouldleadtosalesdeclinesandlossofmarketshare.WhiletheCompanyseekstoprojecttradeoffsbetweenpriceincreasesandvolume,itsprojectionsmaynotaccuratelypredictthevolumeimpactofpriceincreases,whichcouldadverselyaffectitsfinancialconditionandresultsofoperations.

Toreducethecostvolatilityassociatedwithanticipatedcommoditypurchases,theCompanyusesderivativeinstruments,includingcommodityfuturesandswaps.TheextentoftheCompany’sderivativepositionatanygiventimedependsontheCompany’sassessmentofthemarketsforthesecommodities,thecostvolatilityinthemarketsandthecostofthederivativeinstruments.ManyofthecommoditiesusedbytheCompanyinitsproductsdonothaveactivelytradedderivativeinstruments.IftheCompanydoesnotorisunabletotakeaderivativepositionandcostssubsequentlyincrease,orifitinstitutesapositionandcostssubsequentlydecrease,theCompany’scostsmaybegreaterthananticipatedorhigherthanitscompetitors’costsandtheCompany’sfinancialresultscouldbeadverselyaffected.ForfurtherinformationregardingtheCompany’suseofderivativeinstruments,see“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”inExhibit99.1.

DependenceonkeycustomerscouldadverselyaffecttheCompany’sbusiness,financialconditionandresultsofoperations.

AlimitednumberofcustomersaccountforalargepercentageoftheCompany’snetsales.NetsalestotheCompany’slargestcustomer,WalmartStores,Inc.anditsaffiliates,were27%,26%and27%ofconsolidatednetsalesforeachofthefiscalyearsendedJune30,2016,2015and2014,respectively,andoccurredineachoftheCompany’sreportablesegments.Nootherindividualcustomeraccountedformorethan10%ofconsolidatednetsalesinanyofthesefiscalyears.Duringfiscalyears2016,2015and2014,theCompany’sfivelargestcustomersaccountedfor46%,45%,and45%ofitsconsolidatednetsalesforeachofthethreefiscalyears,respectively.TheCompanyexpectsthatasignificantportionofitsrevenueswillcontinuetobederivedfromasmallnumberofcustomers.Asaresult,changesinthestrategiesoftheCompany’slargestcustomers,includingareductioninthenumberofbrandstheycarryorashiftofshelfspaceto“privatelabel”orcompetitors’products,mayharmtheCompany’snetsalesandreducetheabilityoftheCompanytooffernewinnovativeandimprovedproductstoconsumers.Inaddition,anylossofakeycustomerorasignificantreductioninnetsalestoakeycustomer,evenifsuchlossorreductionrelatestoakeycustomerofabusinessunitoftheCompany,couldhaveamaterialadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.

Inaddition,theCompany’sbusinessisbasedprimarilyuponindividualsalesorders,andtheCompanytypicallydoesnotenterintolong-termcontractswithitscustomers.Accordingly,customerscouldreducetheirpurchasinglevelsorceasebuyingproductsfromtheCompanyatanytimeandforanyreason.IftheCompanydoesnoteffectivelyrespondtothedemandsofitscustomers,theycoulddecreasetheirpurchasesfromtheCompany,causingtheCompany’snetsalesandnetearningstodecline.Furthermore,unfavorablemarketconditionsorcompetitivepressuresmaycausetheCompany’scustomerstoreevaluatethenumberandmixofbrandstheysell,resultinginlowerpurchasesoftheCompany’sproductsbythesecustomers.

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TheCompanycontinuestoseeretailerconsolidationbothintheUnitedStatesandinternationally.Thistrendhasresultedintheincreasedsizeandinfluenceoflargeconsolidatedretailers,whohaveinthepastchanged,andmayinthefuturechange,theirbusinessstrategies,demandlowerpricingorspecialpackagingorimposeotherburdensomerequirementsonproductsuppliers.Thesebusinessdemandsmayrelatetoinventorypractices,logistics,ashiftinfocusawayfrombrandedproductstoward“privatelabel”orotheraspectsofthecustomer-supplierrelationship.TheselargeconsolidatedcompaniescouldalsoexertadditionalcompetitivepressureontheCompany’sothercustomers,whichcouldinturnleadtosuchcustomersdemandinglowerpricingorspecialpackagingorimposingotheronerousrequirementsontheCompany.IftheCompanyceasesdoingbusinesswithasignificantcustomerorifsalesofitsproductstoasignificantcustomermateriallydecreaseduetocustomerinventoryreductionsorotherwise,theCompany’sbusiness,financialconditionandresultsofoperationsmaybeharmed.

Cyber-attacks,privacybreaches,databreachesorafailureofkeyinformationtechnologysystemscouldadverselyimpacttheCompany’sabilitytoconductbusiness.

TheCompanyreliesextensivelyoninformationtechnologysystems,manyofwhicharemanagedbythird-partyserviceproviders,inordertoconductitsbusiness.Thesesystemsinclude,butarenotlimitedto,programsandprocessesrelatingtocommunicatingwithintheCompanyandwithcustomers,consumersandotherparties,orderingandmanagingmaterialsfromsuppliers,convertingmaterialstofinishedproducts,shippingproductstocustomers,processingtransactions,summarizingandreportingresultsofoperations,complyingwithregulatory,legalandtaxrequirementsandimplementingotherprocessesinvolvedinmanagingthebusiness.AlthoughtheCompanyhasmadeprogresswithitsimplementationofenterprise-wideupgradestoitshardware,softwareandoperatingsystems,legacysystemsstillremain.IftheCompany’sexistingand/orfuturetechnologysystems,third-partyserviceprovidersandprocessesdonotadequatelysupportthefuturegrowthoftheCompany’sbusiness,theCompany’sbusinessmaybeadverselyimpacted.

AlthoughtheCompanyhasnetworksecuritymeasuresinplace,thesystemsmaybevulnerabletocomputervirusesorothermaliciouscodes,securitybreachesandotherdisruptionsfromunauthorizedusersorsystemfailures,includingInternetoutages.WhiletheCompanyhasbusinesscontinuityplansinplace,ifthesystemsaredamagedorceasetofunctionproperlyduetoanynumberofcauses,includingcatastrophicevents,poweroutages,securitybreachesorothersimilarevents,andifthebusinesscontinuityplansdonoteffectivelyresolvesuchissuesonatimelybasis,theCompanymaysufferinterruptionsinitsabilitytomanageorconductbusiness,whichmayadverselyimpacttheCompany’sbusiness.Furthermore,theCompanysellsitsBurt’sBees®naturalpersonalcareproducts,RenewLife®digestivehealthproductsandotherproductsdirectlytoconsumersonline,provideswebsites,mobileappsandconnecteddevices,andofferspromotions,rebates,customerloyaltyandotherprogramsthroughwhichitmayreceivepersonalinformation,anditoritsvendorscouldexperiencecyber-attacks,privacybreaches,databreachesorotherincidentsthatresultinunauthorizeddisclosureofconsumer,customer,employeeorCompanyinformation.InAugust2015,thefederalgovernmentbroughtanindictmentagainstbrokersandhackersforstealingadvanced,nonpublicpressreleasesofvariouspubliccompaniesfromnewswiresandtradingonsecuritiesusingtheinformationfromsuchpressreleases.IftheCompanysuffersalossasaresultofabreachorotherbreakdowninitstechnology,includingsuchcyber-attack,privacybreaches,databreachesorotherincidentinvolvingoneoftheCompany’svendors,thatresultinunauthorizeddisclosureorsignificantunavailabilityofbusiness,financial,personalorstakeholderinformation,theCompanymaysufferreputational,competitiveand/orbusinessharmandmaybeexposedtolegalliability,whichmayadverselyaffecttheCompany’sresultsofoperationsand/orfinancialcondition.Inaddition,iftheCompany’sserviceproviders,suppliersorcustomersexperiencesuchabreachorunauthorizeddisclosureorsystemfailure,theirbusinessescouldbedisruptedorotherwisenegativelyaffected,whichmayresultinadisruptionintheCompany’ssupplychainorreducedcustomerorders,whichwouldadverselyaffecttheCompany’sbusinessoperations.

Governmentregulationscouldimposematerialcosts.

Generally,themanufacture,packaging,labeling,storage,distributionandadvertisingoftheCompany’sproductsandtheconductofitsbusinessoperationsmustallcomplywithextensivefederal,stateandforeignlawsandregulations.Forexample,intheUnitedStates,manyoftheCompany’sproductsareregulatedbytheEnvironmentalProtectionAgency,theFoodandDrugAdministrationandtheConsumerProductSafetyCommission,andtheCompany’sproductclaimsandadvertisingareregulatedbytheFederalTradeCommission,amongotherregulatoryagencies.Moststateshaveagenciesthatregulateinparalleltothesefederalagencies.TheCompany’sinternationaloperationsarealsosubjecttoregulationineachoftheforeignjurisdictionsinwhichitmanufacturesordistributesitsproducts.Thereisalsoariskofpotentiallyhigherincidenceoffraudorcorruptionincertainforeignjurisdictionsandrelateddifficultiesinmaintainingeffectiveinternalcontrols.Additionally,theCompanycouldbesubjecttoinquiriesorinvestigationsbygovernmentalandotherregulatorybodies.AnydeterminationthattheCompany’soperationsoractivitiesarenotincompliancewithapplicablelawcouldexposetheCompanytosignificantfines,penaltiesorothersanctionsthatmayharmthebusinessandreputationoftheCompany.

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Inparticular,becauseoftheCompany’sextensiveinternationaloperations,wecouldbeadverselyaffectedbyviolationsoftheForeignCorruptPracticesActandsimilarworldwideanti-briberylaws.TheForeignCorruptPracticesActandsimilarworldwideanti-briberylawsgenerallyprohibitcompaniesandtheirintermediariesfrommakingimproperpaymentstogovernmentofficialsorotherthirdpartiesforthepurposeofobtainingorretainingbusiness.Whileourpoliciesmandatecompliancewiththeseanti-briberylaws,wecannotprovideassurancethatourinternalcontrolpoliciesandprocedureswillalwaysprotectusfromrecklessorcriminalactscommittedbyouremployees,joint-venturepartnersoragents.Violationsoftheselaws,orallegationsofsuchviolations,coulddisruptourbusinessandadverselyaffectourreputationandourbusiness,resultsofoperations,cashflowsandfinancialcondition.

Itisexpectedthatfederal,stateandforeigngovernmentswillcontinuetointroducenewandexpandedlegislationaffectingtheCompany’soperations,whichmayrequiretheCompanytoincreaseitsresources,capabilitiesandexpertiseinsuchareas.Forexample,theCompanyissubjecttoregulationsregardingthetransportation,storageoruseofcertainchemicalstoprotecttheenvironment,includingasaresultofevolvingclimatechangestandards,andnewandincreasedregulationinotherareas,suchaswithrespectto“conflictminerals.”SuchregulationcouldnegativelyimpacttheCompany’sabilitytoobtainrawmaterialsorcouldincreaseitsacquisitionandcompliancecosts.Inaddition,pendinglegislativeinitiativesandadoptedlegislationintheareasofhealthcarereformandotherareas,suchasthePatientProtectionandAffordableCareActandtheHealthCareandEducationReconciliationActof2010,theDodd-FrankWallStreetReformandConsumerProtectionAct,theForeignAccountTaxComplianceActandlegislationintheareaoftaxationofdomesticandforeignprofits,executivecompensationandcorporategovernance,couldalsoincreasetheCompany’scosts.TheserisksmaybeincreasedbytheCompany’srecentacquisitionofRenewLife,whichmanufacturesproductssubjecttoadditionalregulations.

IftheCompanyisfoundtobenoncompliantwithapplicablelawsandregulationsintheseorotherareas,itcouldbesubjecttocivilremedies,includingfines,importdetentions,injunctions,productwithdrawalsorrecallsorassetseizures,aswellaspotentialcriminalsanctions,anyofwhichcouldhaveamaterialadverseeffectonitsbusiness.Lossoforfailuretoobtainnecessarypermitsandregistrations,particularlywithrespecttoitscharcoalbusiness,coulddelayorpreventtheCompanyfrommeetingcurrentproductdemand,introducingnewproducts,buildingnewfacilitiesoracquiringnewbusinessesandcouldadverselyaffectoperatingresults.AstheCompanyexpandsitsnaturalpersonalcareandhealthcarebusinessessuchasthroughBurt’sBees®,HealthLink®,Aplicare®andCaltechIndustries,anincreasingnumberofitsproductshaveandwillbecomesubjecttoregulationsandlawsrelatingtodrugsandmedicaldevices.Inaddition,astheCompanyentersthedigestivehealthspacethroughitsacquisitionofRenewLife®,itsproductsaresubjecttoregulationsrelatingtodietarysupplements.Inordertocomplywiththeselawsandregulations,theCompanymayberequiredtomakechangestoproductformulation,labelingormarketingclaims,performadditionaltestingtosubstantiateitsproductclaims,makecostlychangesinitsmanufacturingprocessesorsupplychainorstopsellingcertainproductsuntilcorrectiveactionshavebeentaken.

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TheCompanyissubjecttorisksrelatedtoitsinternationaloperations.

Infiscalyear2016,approximately17%oftheCompany’snetsalesweregeneratedininternationalmarkets,includingapproximately3%oftheCompany’snetsalesinArgentina.TheCompanyfacesandwillcontinuetofacesubstantialrisksassociatedwithitsforeignoperations,includingthefollowing:

● economicorpoliticalinstability,particularlyinArgentina;● pricecontrolsandrelatedgovernmentactions;● foreigncurrencyfluctuations,currencycontrolsandinflation,particularlyinArgentina,whichmayadverselyaffecttheCompany’sabilitytodobusinessin

certainmarketsandreducetheU.S.dollarvalueofrevenues,profitsorcashflowsitgeneratesinnon-U.S.markets;● difficulty in obtaining non-local currency (e.g., U.S. dollars) to pay for the rawmaterials needed to manufacture the Company’s products and contract-

manufacturedproducts;● restrictions on or costs related to the repatriation of foreign profits to the United States, including possible taxes or withholding obligations on any

repatriations;● theimpositionoftariffs,traderestrictions,importandexportlawsorothergovernmentactionsgeneratinganegativeimpactontheCompany’sbusiness;● difficultiesinhiringandretainingqualifiedemployees;● civilunrest,workstoppagesandlabordisputes;● employmentlitigationrelatedtoemployees,contractorsandsuppliers,particularlyinArgentina;● difficultiesinobtainingorunavailabilityofrawmaterials;● potentiallossofdistributionchannelsasaresultofretailerconsolidation;● increasedcreditriskofcustomers,suppliersanddistributors;● potentialharmtothirdparties,theCompany’semployeesand/orsurroundingcommunities,andrelatedliabilitiesanddamagestotheCompany’sreputation,

fromtheuse,storageandtransportationofchlorineincertaininternationalmarketswherechlorineisusedintheproductionofbleach,whethersuchactionsareundertakenbytheCompanyorbytheCompany’sbusinesspartners;

● difficultiesinenforcingintellectualpropertyandcontractualrights;● lackofwell-establishedorreliable,andimpartiallegalsystemsincertaincountrieswheretheCompanyoperates;● challengesrelatingtoenforcementoforcompliancewithlocallawsandregulationsandwithU.S.lawsaffectingoperationsoutsideoftheUnitedStates,

includingwithoutlimitation,theForeignCorruptPracticesAct;● thepossibilityofnationalization,expropriationofassetsorothersimilargovernmentactions;and● risksrelatedtotheCompany’sdiscontinuedoperationsinVenezuela.

TherisksdescribedabovecouldhaveasignificantadverseimpactontheCompany’sabilitytocommercializeitsproductsonacompetitivebasisininternationalmarketsandmayhaveamaterialadverseeffectonitsresultsofoperationsorfinancialcondition.TheCompany’ssmallsalesvolumeinsomecountries,relativetosomemultinationalandlocalcompetitors,couldexacerbatesuchrisks.

Inaddition,theCompanyisexposedtoforeigncurrencyexchangerateriskswithrespecttoitsnetsales,netearningsandcashflowdrivenbymovementsoftheU.S.dollarrelativetoothercurrencies.Aweakeningofthecurrenciesinwhichsalesaregeneratedrelativetothecurrenciesinwhichcostsaredenominatedwoulddecreasenetearningsandcashflow.AlthoughtheCompanyusesinstrumentstohedgecertainforeigncurrencyrisks,thesehedgesonlyoffsetasmallportionoftheCompany’sexposuretoforeigncurrencyfluctuationsand,therefore,theCompany’sreportednetearningsmaybenegativelyaffectedbychangesinforeignexchangerates.

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InflationisanotherriskassociatedwiththeCompany’sinternationaloperations.Forexample,Argentinacouldinthefuturebedesignatedasahighlyinflationaryeconomy.Gainsandlossesresultingfromtheremeasurementofnon-U.S.dollarmonetaryassetsandliabilitiesofsubsidiariesoperatinginhighlyinflationaryeconomiesarerecordedinnetearnings.OthercountriesinwhichtheCompanyoperatesmayalsobecomehighlyinflationaryorsuchcountries’currenciesmaybedevalued,orboth,whichmaynegativelyimpacttheCompany’sbusinessoperationsandfinancialresults.

ForfurtherinformationregardingArgentina,see“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”inExhibit99.1.

Acquisitions,newventureinvestmentsanddivestituresmaynotbesuccessful,whichcouldimpacttheCompany’sbusinessoperationsandfinancialresults.

InconnectionwiththeCompany’sstrategy,theCompanyexpectstocontinuetoseekacquisitionopportunities,suchastherecentacquisitionofRenewLife,whichcompetesinthedigestivehealthcategory.However,theCompanymaynotbeabletoidentifyandsuccessfullynegotiatesuitablestrategicacquisitionsatattractiveprices.Inaddition,allacquisitionsandinvestmentsentailnumerousrisks,includingrisksrelatingtotheCompany’sabilityto:

● successfullyintegrateacquiredcompanies,products,systemsorpersonnelintotheCompany’sexistingbusiness,especiallywithrespecttobusinessesoroperationsthatareoutsideoftheUnitedStates;

● minimizeanypotentialinterruptiontotheongoingbusinessoftheCompanyortheacquiredcompany;● successfullyentercategoriesandmarketsinwhichtheCompanymayhavelimitedornopriorexperience,suchasthedigestivehealthcategory;● achieveexpectedsynergiesandobtainthedesiredfinancialorstrategicbenefitsfromacquisitions;● achievedistributionexpansionrelatedtoproducts,categoriesandmarketsfromacquisitions;● retainkeyrelationshipswithemployees,customers,partnersandsuppliersofacquiredcompanies;and● maintainuniformstandards,controls,proceduresandpoliciesthroughoutacquiredcompanies.

Acquiredcompaniesoroperationsorjointventuresmaynotbeprofitableormaynotachievesaleslevelsandprofitabilityandcashflowexpectations.Futureacquisitionsorventurescouldalsoresultinpotentiallydilutiveissuancesofequitysecurities,theincurrenceofdebt,theassumptionofcontingentliabilities,includinglitigation,anincreaseinexpensesrelatedtocertainassetsandincreasedoperatingexpenses,allofwhichcouldadverselyaffecttheCompany’sresultsofoperationsandfinancialcondition.FutureacquisitionsofforeigncompaniesornewforeignventureswouldsubjecttheCompanytolocalregulationsandcouldpotentiallyleadtorisksrelatedto,amongotherthings,increasedexposuretoforeignexchangeratechanges,governmentpricecontrol,repatriationofprofitsandliabilitiesrelatingtotheForeignCorruptPracticesAct.Inaddition,totheextentthattheeconomicbenefitsassociatedwithanyoftheCompany’sacquisitionsdiminishinthefuture,theCompanymayberequiredtorecordimpairmentchargesrelatedtogoodwill,intangibleassetsorotherassetsassociatedwithsuchacquisitions,whichcouldadverselyaffectitsoperatingresultsand/ornetearningspershare.

TheCompanymayalsodivestcertainassets,businessesorbrandsthatdonotmeettheCompany’sstrategicobjectivesorgrowthtargets.Withrespecttoanydivestiture,theCompanymayencounterdifficultyfindingpotentialacquirersorotherdivestitureoptionsonfavorableterms.AnydivestiturecouldaffecttheprofitabilityoftheCompanyasaresultofthegainsorlossesonsuchsaleofabusinessorbrand,thelossoftheoperatingincomeresultingfromsuchsaleorthecostsorliabilitiesthatarenotassumedbytheacquirer(i.e.,strandedcosts)thatmaynegativelyimpactprofitabilityandcashflowsubsequenttoanydivestiture.TheCompanymayalsoberequiredtorecognizeimpairmentchargesasaresultofadivesture.

Inaddition,anypotentialfutureacquisitions,newventuresordivestituresmaydiverttheattentionofmanagementandresourcesfrommattersthatarecoreorcriticaltotheCompany’sbusiness.

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TheCompanymaynotsuccessfullydevelopandintroducenewproductsandlineextensionsorsuccessfullyexpandintoadjacentcategoriesandcountries,whichcouldadverselyimpactitsfinancialresults.

TheCompany’sfutureperformanceandgrowthdependsoninnovationanditsabilitytosuccessfullydeveloporlicensecapabilitiestointroducenewproducts,brands,lineextensionsandproductimprovementsorenterintoorexpandintoadjacentproductcategories,saleschannelsorcountries.TheCompanycannotbecertainthatitwillsuccessfullyachieveitsinnovationgoals.Thedevelopmentandintroductionofnewproductsrequiresubstantialandeffectiveresearchanddevelopmentandmarketingexpenditures,whichtheCompanymaybeunabletorecoupifthenewproductsdonotgainwidespreadmarketacceptance.Inaddition,effectiveandintegratedsystemsarerequiredfortheCompanytogatheranduseconsumerdataandinformationtosuccessfullymarketitsproducts.Newproductdevelopmentandmarketingefforts,includingeffortstoentermarketsorproductcategoriesinwhichtheCompanyhaslimitedornopriorexperience,haveinherentrisks.Theserisksincludeproductdevelopmentorlaunchdelays,whichcouldresultintheCompanynotbeingfirsttomarketandthefailureofnewproducts,brandsandlineextensionstoachieveanticipatedlevelsofmarketacceptance.Ifproductintroductionsorneworexpandedadjacenciesarenotsuccessful,costsassociatedwiththeseeffortsmaynotbefullyrecoupedandtheCompany’snetearningscouldbeadverselyaffected.Inaddition,ifsalesgeneratedbynewproductscauseadeclineinsalesoftheCompany’sexistingproducts,theCompany’sfinancialconditionandresultsofoperationscouldbemateriallyadverselyaffected.

RelianceonalimitedbaseofsuppliersmayresultindisruptionstotheCompany’sbusiness.

TheCompanyreliesonalimitednumberofsuppliersforcertaincommoditiesandrawmaterialinputs,includingsole-sourceandsingle-sourcesuppliersforcertainofitsrawmaterials,packaging,productcomponents,finishedproductsandothernecessarysupplies.NewsuppliershavetobequalifiedunderCompanystandardsandmayalsohavetobequalifiedundergovernmentalandindustrystandards,whichcanrequireadditionalinvestmentandtime.TheCompanycouldexperiencedisruptionsinproductionanditsfinancialresultsandrelationshipswithcustomerscouldbeadverselyaffectediftheCompanyisunabletoqualifyanyneedednewsuppliersormaintainsupplierarrangementsandrelationships,ifitisunabletocontractwithsuppliersatthequantity,qualityandpricelevelsneededforitsbusinessorifanyoftheCompany’skeysuppliersbecomesinsolvent,experiencesfinancialdistressorenvironmental,economicorotheroutsidefactorsimpactitsoperations.

Productliability,commercialclaimsorotherlegalproceedingscouldadverselyaffecttheCompany’snetsalesandoperatingresults,includingcashflow.

TheCompanyhasinthepastpaid,andmayberequiredinthefuturetopay,forlossesorinjuriespurportedlycausedbyitsproducts.Suchclaimsmaybebasedonallegationsthat,amongotherthings,theCompany’sproductscontaincontaminantsorprovideinadequateinstructionsorwarningsregardingtheiruse,havedefectivepackaging,failtoperformasadvertised,ordamagepropertyorpersons.ProductliabilityclaimscouldresultinnegativepublicitythatcouldharmtheCompany’sreputation,salesandoperatingresults.Inaddition,ifanyoftheCompany’sproductsisfoundtobedefective,theCompanymayrecallit,whichcouldresultinadversepublicityandsignificantexpenses.InJuly2016,theCompanyvoluntarilyrecalledthreeoftheLiquid-Plumr®products,whichrecallaffectsproductsmanufacturedpriortoMarch22,2016.AlthoughtheCompanymaintainsproductliabilityinsurancecoverage,potentialproductliabilityclaimsmaybesubjecttoaretention,exceedtheamountofinsurancecoverageorbeexcludedunderthetermsofthepolicies.

Inaddition,theCompanyis,andmayinthefuturebecome,thesubjectof,orpartyto,variouspendingorthreatenedlegalactions,governmentinvestigationsandproceedingsfromtimetotime,includingadvertisingdisputeswithcompetitors,consumerclassactions,includingthoserelatedtoadvertisingclaims,laborclaims,breachofcontractclaims,antitrustlitigation,securitieslitigation,premisesliabilityclaimsandlitigationinforeignjurisdictions.Ingeneral,claimsmadebyoragainsttheCompanyinlitigation,investigations,disputesorotherproceedingshavebeenandcaninthefuturebeexpensiveandtime-consumingtobringordefendagainstandcouldresultinsettlements,injunctionsordamagesthatcouldsignificantlyaffectitsbusinessorfinancialresultsorcondition.Itisnotpossibletopredictthefinalresolutionofthelitigation,investigations,disputesorproceedingswithwhichtheCompanycurrentlyisormayinthefuturebecomeinvolved.TheimpactofthesemattersontheCompany’sbusiness,resultsofoperationsandfinancialconditioncouldbematerial.See“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”andtheNotestoConsolidatedFinancialStatementsinExhibit99.1foradditionalinformationrelatedtothesematters.

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ProfitabilityandcashflowcouldsufferiftheCompanyisunabletosuccessfullyimplementitsstrategies,generateanticipatedcostsavingsandefficienciesorefficientlymanagesupplychainandmanufacturingprocesses.

TheCompanycontinuestoimplementplanstoimproveitscompetitivepositionbysettingaggressiveannualcostsavingstargets,anditexpectsongoingcostsavingsfromitscontinuousimprovementactivities.TheCompanyanticipatesthesecontinuingcostsavingswillresultfromreducingmaterialcostsandmanufacturinginefficienciesandrealizingproductivitygains,distributionefficienciesandoverheadreductions.IftheCompanycannotsuccessfullyimplementitscostsavingsplansorthecostofmakingthesechangesincreases,theCompanymaynotrealizeallanticipatedbenefits,whichcouldadverselyaffectitsfinancialresultsoritslong-termstrategies,suchasthe2020Strategy,whichincludesfinancialgoalssuchasannualnetsalesgrowthof3-5%,annualEBITmargingrowthbetween25-50basispointsandannualfreecashflowasapercentageofnetsalesofabout10-12%.TheCompanyalsocontinuestoseektopenetratenewmarketsandintroducenewproductsandproductimprovements.Thesegoalsandstrategiesmaynotbeimplementedormayfailtoachievedesiredresults,andtheCompanymayfailtoachieveoneormoreofthefinancialgoalsforoneormoreoftherelevantfiscalyears.Inaddition,theCompanyexpectstocontinuetorestructureitsoperationsasnecessarytoimproveoperationalefficiency,includingoccasionallyclosingfacilitiesorplants.Gainingadditionalefficienciesmaybecomeincreasinglydifficultovertime,theremaybeone-timecostsrelatingtofacilityclosuresorotherrestructuringsandanticipatedcostsavingsandtheCompany’sstrategiesmaynotbeimplementedormayfailtoachievedesiredresults.IftheCompanyisunabletoimplementitsstrategiesorifitsstrategiesdonotachievetheintendedeffects,ifitdoesnotrealizecostsavingsandotherefficienciesorifitisunabletoefficientlymanageitssupplychainandmanufacturingprocesses,theCompany’sfinancialresultscouldsuffer.TheseplansandstrategiescouldalsohaveanegativeimpactontheCompany’srelationshipswithemployeesorcustomers,whichcouldalsoadverselyaffecttheCompany’sfinancialresults.

Lossof,orinabilitytoattract,keypersonnelcouldadverselyimpacttheCompany’sbusiness.

TheCompany’ssuccessdepends,inpart,onitsabilitytoretainitskeypersonnel,includingitsexecutiveofficersandseniormanagementteam.TheunexpectedlossofoneormoreoftheCompany’skeyemployeescoulddisruptitsbusiness.TheCompany’ssuccessalsodepends,inpart,onitscontinuingabilitytoidentify,hire,trainandretainotherhighlyqualifiedpersonnel.Competitionfortheseemployeescanbeintense,especiallyintheSanFranciscoBayArea,wheretheCompany’sheadquartersandlargestresearchfacilityarelocated.AstheCompanyexpandsintonewcategoriesormarkets,includingmoreregulatedbusinesses,itwillalsorequirepersonnelwithrelevanttrainingandexperienceinsuchcategoriesormarkets.TheCompanymaynotbeabletoattract,assimilateorretainqualifiedpersonnelinthefuture,anditsfailuretodosocouldadverselyaffectitsbusiness.

HarmtotheCompany’sreputationorthereputationofoneormoreofitsleadingbrandscouldhaveanadverseeffectonthebusiness.

Maintainingastrongreputationwithconsumers,customersandtradepartnersiscriticaltothesuccessoftheCompany’sbusiness.TheCompanydevotessignificanttimeandresourcestoprogramsdesignedtoprotectandpreservetheCompany’sreputationandthereputationofitsbrands.Theseprogramsincludeethicsandcompliance,sustainabilityandproductsafetyandqualityinitiatives.Despitetheseefforts,negativepublicityabouttheCompany,includingproductsafety,quality,efficacyorsimilarconcerns,whetherrealorperceived,couldoccur,andtheCompany’sproductscouldfacewithdrawal,recallorotherqualityissues.TheCompanyalsolicensescertainofitsbrandstothirdparties,whichcreatesadditionalexposureforthosebrandstoproductsafety,qualityandotherconcerns.Inaddition,widespreaduseofsocialmediaandnetworkingsitesbyconsumershasgreatlyincreasedthespeedandaccessibilityofinformationdissemination.Negativepublicity,postsorcommentsonsocialmediaornetworksitesabouttheCompanyoritsbrands,whetheraccurateorinaccurate,ordisclosureofnon-publicsensitiveinformationabouttheCompany,couldbewidelydisseminatedthroughtheuseofsocialmedia.Suchevents,iftheyweretooccur,couldharmtheCompany’simageandadverselyaffectitsbusiness,aswellasrequireresourcestorebuildtheCompany’sreputation.

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EnvironmentalmatterscreatepotentialliabilitiesthatcouldadverselyaffecttheCompany’sresultsofoperationsorfinancialcondition.

TheCompanymustcomplywithvariousenvironmentallawsandregulationsinthejurisdictionsinwhichitoperates,includingthoserelatingtoairemissions,waterdischarges,handlinganddisposalofsolidandhazardouswastes,remediationofcontaminationassociatedwiththeuseanddisposalofhazardoussubstancesandclimatechange.TheCompanyhasincurred,andwillcontinuetoincur,significantexpendituresandothercostsincomplyingwithenvironmentallawsandregulationsandinprovidingphysicalsecurityforitsworldwideoperations,andsuchexpendituresreducethecashflowavailabletotheCompanyforotherpurposes.

TheCompanyiscurrentlyinvolvedinorhaspotentialliabilitywithrespecttotheremediationofpastcontaminationintheoperationofsomeofitscurrentandformerfacilities.Inaddition,someofitspresentandformerfacilitieshaveorhadbeeninoperationformanyyearsand,overthattime,someofthosefacilitiesmayhaveusedsubstancesorgeneratedanddisposedofwastesthatareormaybeconsideredhazardous.Itispossiblethatthosesites,aswellasdisposalsitesownedbythirdpartiestowhomtheCompanyhassentwaste,maybeidentifiedandbecomethesubjectofremediation.TheCompanycouldalsobecomesubjecttoadditionalenvironmentalliabilitiesinthefuturethatcouldresultinamaterialadverseeffectonitsresultsofoperationsorfinancialcondition.

TheCompanyhadarecordedliabilityof$14millionand$12millionasofJune30,2016and2015,respectively,foritsshareofaggregatefutureremediationcostsrelatedtocertainenvironmentalmatters,includingresponseactionsatvariouslocations.OnematterinDickinsonCounty,Michigan,forwhichtheCompanyisjointlyandseverallyliable,accountsforasubstantialmajorityoftherecordedliabilityasofbothJune30,2016and2015.See“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”andtheNotestoConsolidatedFinancialStatementsinExhibit99.1foradditionalinformationrelatedtotheseliabilities.

TheCompanyalsohandlesand/ortransportshazardoussubstances,includingbutnotlimitedtochlorine,atsomeofitsinternationalplantsites.Areleaseofsuchchemicals,whetherintransitorattheCompany’sfacilities,duetoaccidentoranintentionalact,couldresultinsubstantialliabilityandbusinessdisruptions.

ThefacilitiesoftheCompanyanditssuppliersaresubjecttodisruptionbyeventsbeyondtheCompany’scontrol.

OperationsatfacilitiesoftheCompany,itssuppliers,serviceprovidersandretailcustomersaresubjecttodisruptionforavarietyofreasons,includingworkstoppages,demonstrations,diseaseoutbreaksorpandemics,actsofwar,terrorism,fire,earthquakes,floodingorothernaturaldisasters.TheCompany’scorporateheadquartersandprimaryresearchanddevelopmentfacilityarelocatednearmajorearthquakefaultlinesinCalifornia.Ifamajordisruptionweretooccur,itcouldresultinharmtopeopleorthenaturalenvironment,temporarylossofaccesstocriticaldata,delaysinshipmentsofproductstocustomersorsuspensionofoperations.AnysuchdisruptioncouldhaveamaterialadverseimpactontheCompany’sbusiness.

Failuretomaximize,successfullyassertorsuccessfullydefendtheCompany’sintellectualpropertyrightscouldimpactitscompetitiveness.

TheCompanyreliesonintellectualpropertyrightsbasedontrademark,tradesecret,patentandcopyrightlawstoprotectitsbrands,productsandpackagingforitsproducts.TheCompanycannotbecertainthattheseintellectualpropertyrightswillbemaximizedorthattheycanbesuccessfullyasserted.ThereisariskthattheCompanywillnotbeabletoobtainandperfectitsownintellectualpropertyrightsor,whereappropriate,licenseintellectualpropertyrightsnecessarytosupportnewproductintroductions.TheCompanycannotbecertainthattheserights,ifobtained,willnotlaterbeinvalidated,circumventedorchallenged,andtheCompanycouldincursignificantcostsinconnectionwithlegalactionstoassertitsintellectualpropertyrightsortodefendthoserightsfromassertionsofinvalidity.Inaddition,evenifsuchrightsareobtainedintheUnitedStates,thelawsofsomeoftheothercountriesinwhichtheCompany’sproductsareormaybesoldmaynotprotectintellectualpropertyrightstothesameextentasthelawsoftheUnitedStates.IfotherpartiesinfringetheCompany’sintellectualpropertyrights,theymaydiluteordiminishthevalueoftheCompany’sbrandsandproductsinthemarketplace,whichcoulddiminishthevaluethatconsumersassociatewiththeCompany’sbrandsandharmitsnetsales.ThefailuretoperfectandprotectitsintellectualpropertyrightscouldmaketheCompanylesscompetitiveandcouldhaveamaterialadverseeffectonitsbusiness,operatingresults,andfinancialcondition.

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IftheCompanyisfoundtohaveinfringedtheintellectualpropertyrightsofothersorcannotobtainnecessaryintellectualpropertyrightsfromothers,itscompetitivenesscouldbenegativelyimpacted.

IftheCompanyisfoundtohaveviolatedthetrademark,tradesecret,copyright,patentorotherintellectualpropertyrightsofothers,directlyorindirectly,throughtheuseofthird-partymarks,ideasortechnologies,suchafindingcouldresultintheneedtoceaseuseofsuchtrademark,tradesecret,copyrightedworkorpatentedinventionintheCompany’sbusinessandtheobligationtopayforpastinfringement.IfholdersarewillingtopermittheCompanytocontinuetousesuchintellectualpropertyrights,theycouldrequireapaymentofasubstantialamountforcontinueduseofthoserights.EitherceasinguseorpayingsuchamountscouldcausetheCompanytobecomelesscompetitiveandcouldhaveamaterialadverseimpactontheCompany’sbusiness,operatingresultsandfinancialcondition.

EveniftheCompanyisnotfoundtoinfringeathirdparty’sintellectualpropertyrights,claimsofinfringementcouldadverselyaffecttheCompany’sbusiness.Forexample,iftheCompanyseeksproposalsfrommultiplevendorsforanewproductorinnovationandchoosestopartnerwithaparticularvendor,anothervendormayclaimtheCompanyinfringeditsintellectualpropertyrightsbyusinginformationgatheredfromthevendorproposals.TheCompanycouldincurmateriallegalcostsandrelatedexpensestodefendagainstsuchclaimsandtheCompanycouldincursignificantcostsassociatedwithdiscontinuingtouse,provideormanufacturecertainproducts,servicesortrademarksevenifitisultimatelyfoundnottohaveinfringedsuchrights.

AnincreaseinthevalueoftheCompany’sGlad®businesswouldresultinanincreaseintheCompany’spurchaseobligationforTheProcter&GambleCompany’s,P&G’s,20%interestinthatbusiness,whichmayadverselyaffecttheCompany’snetearningsandcashflow.Additionally,itisuncertainwhethertheCompany’snetearningsandcashflowwouldbeadverselyaffectedmorebyanextensionoraterminationoftheagreementrelatedtotheGlad®business.

InJanuary2003,theCompanyenteredintoaventureagreementwithP&GrelatedtotheCompany’sGlad®bags,wrapsandcontainersbusiness.Inconnectionwiththisagreement,P&GprovidesresearchanddevelopmentsupporttotheGlad®business.TheagreementwithP&GwillexpireinJanuary2023unlessthepartiesdecide,onorpriortoJanuary2018,toextendthetermoftheagreementforanother10years.

Unlessextended,theagreementwillrequiretheCompanytopurchaseP&G’s20%interestinJanuary2023forcashatfairvalue.AsofJune30,2016,theestimatedfairvalueofP&G’sinterestwas$448million,ofwhich$302millionhasbeenrecognizedbytheCompanyandisreflectedinOtherliabilitiesintheCompany’sJune30,2016ConsolidatedBalanceSheet.Thedifferencebetweentheestimatedfairvalueandtheamountrecognized,andanyfuturechangesinthefairvalueofP&G’sinterest,ischargedtoCostofproductssoldonastraightlinebasisovertheremaininglifeoftheagreement.TheestimatedfairvalueofP&G’sinterestincreasedsignificantlyin2016andmaycontinuetochangeupuntilanysuchpurchasebytheCompanyofP&G’sinterest.AnyadditionalsignificantincreasesinthefairvalueofsuchinterestmayadverselyaffecttheCompany’snetearningsandcashflow.

IftheCompanyandP&Gdecidenottoextendthetermoftheagreement,thisdecisionmayharmthetermsonwhichtheCompanyhasaccesstoinnovationfromP&G.Alternatively,iftheCompanyandP&Gdecidetoextendthetermoftheagreement,therecanbenoassurancethatanyfutureinnovationwillresult.Ineithercase,netearningsandcashflowmaybenegativelyimpacted.Foradditionalinformation,see“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”andNote10totheConsolidatedFinancialStatementsinExhibit99.1.

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TheCompany’ssubstantialindebtednesscouldadverselyaffectitsbusinessoperationsandfinancialresultsandpreventtheCompanyfromfulfillingitsobligations,andtheCompanymayincursubstantiallymoredebtinthefuture,whichcouldexacerbatetheserisks.

AsofJune30,2016,theCompanyhadover$2billionofdebt.TheCompany’ssubstantialindebtednesscouldhaveimportantconsequences.Forexample,itcould:

● requiretheCompanytodedicateasubstantialportionofitscashflowfromoperationstopaymentsonitsindebtedness,whichwouldreducetheavailabilityofitscashflowtofundworkingcapitalrequirements,capitalexpenditures,futureacquisitionsandothergeneralcorporatepurposes;

● limittheCompany’sflexibilityinplanningfororreactingtogeneraladverseeconomicconditionsorchangesinitsbusinessandtheindustriesinwhichitoperates;

● placetheCompanyatacompetitivedisadvantagecomparedtoitscompetitorsthathavelessdebt;and● limit,alongwiththefinancialandotherrestrictivecovenantsintheCompany’sdebtdocuments,itsabilitytoborrowadditionalfunds.

Additionally,failurebytheCompanytocomplywiththefinancialandotherrestrictivecovenantsinitsdebtdocumentscouldresultinaneventofdefaultthat,ifnotcuredorwaived,couldhaveasignificantadverseeffectontheCompany.Further,certaintermsoftheagreementsgoverningtheCompany’sover-the-counterderivativeinstrumentscontainprovisionsthatrequiretheCompany’screditratings,asassignedbyStandard&Poor’sandMoody’stotheCompanyanditscounterparties,toremainatalevelequaltoorbetterthantheminimumofaninvestmentgradecreditrating.AsofJune30,2016,theCompanyandeachofitscounterpartieshadbeenassignedinvestment-graderatingswithbothStandard&Poor’sandMoody’s.However,iftheCompany’screditratingweretofallbelowinvestmentgrade,thecounterpartiestothederivativeinstrumentsinnetliabilitypositionscouldrequestfullcollateralization.

TheCompanymayincursubstantialadditionalindebtednessinthefuturetofundacquisitions,repurchasesharesorfundotheractivitiesforgeneralbusinesspurposes,subjecttocompliancewiththeCompany’sexistingrestrictivedebtcovenants.AsofJune30,2016,theCompanycouldaddapproximately$2billioninincrementaldebtandremainincompliancewithrestrictivedebtcovenants,althoughtheactualamountthattheCompanymaybeabletoborrowinthefuturemaynotequalthisamount.Ifnewdebtisaddedtothecurrentdebtlevels,therelatedrisksthattheCompanynowfacescouldintensify.Inaddition,thecostofincurringadditionaldebtcouldincreaseduetopossibledowngradesintheCompany’screditrating,economicconditionsorotherwise.Inthisregard,failuretomaintaintheCompany'screditratingscouldadverselyaffecttheinterestrateinfuturefinancings,liquidity,competitivepositionandaccesstocapitalmarkets.

TheCompanyissubjecttorisksrelatedtoitsdiscontinuedoperationsinVenezuela.

OnSeptember22,2014,theCompany’sVenezuelasubsidiaryannouncedthatitwasdiscontinuingitsoperations,effectiveimmediately,andseekingtosellitsassets.OnSeptember26,2014,theCompanyreportedthatVenezuelanVicePresidentJorgeArreazaannounced,withendorsementbyPresidentNicolásMaduro,thattheVenezuelangovernmenthadoccupiedtheproductionfacilitiesoftheCompany’sVenezuelasubsidiary.OnNovember6,2014,theCompanyreportedthattheVenezuelangovernmenthadpublishedaresolutiongrantingagovernment-sponsoredSpecialAdministrativeBoardfullauthoritytorestartandoperatethebusinessformerlyoperatedbytheCompany’sVenezuelasubsidiary,therebyreaffirmingthegovernment’sexpropriationofitsassets.Further,PresidentNicolásMaduroannouncedthegovernment’sintentiontofacilitatetheresumedproductionofbleachandothercleaningproductsattheVenezuelaplants.TheVenezuelangovernment’sactionsraisegraveconcerns,astheproductionofcleaningproducts,inparticularbleach,isahighlyspecializedandtechnicalprocess.AnyrestartingofoperationsinVenezuelaisorwouldbewithouttheconsentorinvolvementoftheCompanyanditsaffiliates,andanyresumedproductionprocesseswouldbeoutsidetheCompany’scontrol.TheCompanyhasadvisedrepeatedlythatitanditsaffiliatescannotberesponsibleforthesafetyofanyworkersandthesurroundingcommunitiesorforthesafety,qualityoreffectivenessofanyproductthatmaybeproducedundertheVenezuelangovernment’stakeoveroranyuseofthenamesandtrademarksoftheCompanyanditsaffiliates.Nevertheless,theCompanymayfaceliabilitiesorcostsassociatedwithanysuchunauthorizedresumptionofoperationsbytheVenezuelangovernmentorothers.

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TheCompanymaynotcontinuetopaydividendsorrepurchaseitsstock.

AlthoughtheCompanyhashistoricallydeclaredandpaidquarterlycashdividendsonitscommonstockandhasbeenauthorizedtorepurchaseitssharessubjecttocertainlimitationsunderitssharerepurchaseprograms,anydeterminationsbytheboardofdirectorstocontinuetodeclareandpaycashdividendsontheCompany’scommonstockortorepurchasetheCompany’scommonstockwillbebasedprimarilyupontheCompany’sfinancialcondition,resultsofoperationsandbusinessrequirements,thepriceofitscommonstockinthecaseoftherepurchaseprogramandtheboardofdirectors’continuingdeterminationthattherepurchaseprogramsandthedeclarationandpaymentofdividendsareinthebestinterestsoftheCompany’sstockholdersandareincompliancewithalllawsandagreementsapplicabletotherepurchaseanddividendprograms.TheCompany’sabilitytocontinuetodeclareandpaycashdividendswilldependupon,amongotherthings,itscashbalancesandfuturecashrequirements,resultsofoperations,financialconditionandnetearnings,allofwhicharesubjecttogeneraleconomic,financial,competitive,legislative,regulatoryandotherfactorsbeyondtheCompany’scontrol.IntheeventtheCompanydoesnotdeclareandpayaquarterlydividendordiscontinuesitssharerepurchases,theCompany’sstockpricecouldbeadverselyaffected.

TheCompany’scontinuedgrowthandexpansionandrelianceonthird-partyserviceproviderscouldadverselyaffectitsinternalcontroloverfinancialreporting,whichcouldharmitsbusinessandfinancialresults.

Cloroxmanagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting.InternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingforexternalpurposesinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingcannotprovideabsoluteassurancethatamisstatementoftheCompany’sfinancialstatementswouldbepreventedordetected.TheCompany’scontinuinggrowthandexpansionindomesticandgloballydispersedmarkets,suchasitsrecentacquisitionofRenewLife,mayplacesignificantadditionalpressureontheCompany’ssystemofinternalcontroloverfinancialreporting.Moreover,theCompanyengagestheservicesofthirdpartiestoassistwithbusinessoperationsandfinancialreportingprocesses,whichinjectsadditionalmonitoringobligationsandriskintothesystemofinternalcontrol.AnyfailuretomaintainaneffectivesystemofinternalcontroloverfinancialreportingcouldlimittheCompany’sabilitytoreportitsfinancialresultsaccuratelyandonatimelybasis,ortodetectandpreventfraudandcouldexposeittoregulatoryenforcementactionandshareholderclaims.

TheCompany’sjudgmentsregardingtheaccountingfortaxpositionsandtheresolutionoftaxdisputesmayimpacttheCompany’snetearningsandcashflow.

SignificantjudgmentisrequiredtodeterminetheCompany’seffectivetaxrateandevaluateitstaxpositions.TheCompanyprovidesforuncertaintaxpositionswhensuchtaxpositionsdonotmeettherecognitionthresholdsormeasurementcriteriaprescribedbyapplicableaccountingstandards.Fluctuationsinfederal,state,localandforeigntaxesorachangetouncertaintaxpositions,includingrelatedinterestandpenalties,mayimpacttheCompany’seffectivetaxrateandtheCompany’sfinancialresults.Whenparticulartaxmattersarise,anumberofyearsmayelapsebeforesuchmattersareauditedandfinallyresolved.Unfavorableresolutionofanytaxmattercouldincreasetheeffectivetaxrate,whichwouldhaveanadverseeffectontheCompany’soperatingresults.Anyresolutionofataxissuemayrequiretheuseofcashintheyearofresolution.Foradditionalinformation,seetheinformationsetforthintheNotestoConsolidatedFinancialStatementsinExhibit99.1.

TheestimatesandassumptionsonwhichtheCompany’sfinancialprojectionsarebasedmayprovetobeinaccurate,whichmaycauseitsactualresultstomateriallydifferfromsuchprojections,whichmayadverselyaffecttheCompany’sfutureprofitability,cashflowsandstockprice.

TheCompany’sfinancialprojectionsaredependentoncertainestimatesandassumptionsrelatedto,amongotherthings,categorygrowth,marketshareprojections,productpricing,foreignexchangerates,commodityprices,costsavings,accrualsforestimatedliabilities,includinglitigationreserves,goodwill,measurementofbenefitobligationsforpensionandotherpostretirementbenefitplansandtheCompany’sabilitytogeneratesufficientcashflowtoreinvestinitsexistingbusiness,fundinternalgrowth,repurchaseitsshares,makeacquisitions,paydividendsandmeetdebtobligations.WhiletheCompany’sfinancialprojectionsarebasedonhistoricalexperienceandonvariousotherassumptionsthattheCompanybelievestobereasonableunderthecircumstancesandatthetimetheyaremade,theCompany’sactualresultsmaydiffermateriallyfromitsfinancialprojections.AnymaterialvariationbetweentheCompany’sfinancialprojectionsanditsactualresultsmayadverselyaffecttheCompany’sfutureprofitability,cashflowsandstockprice.

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TheCompany’sbusinesscouldbenegativelyimpactedasaresultofstockholderactivismoranunsolicitedtakeoverproposaloraproxycontest.

Inrecentyears,proxycontestsandotherformsofstockholderactivismhavebeendirectedagainstnumerouspubliccompanies,includingtheCompany.Duringfiscalyears2012and2011,theCompanywasthetargetofanunsolicitedtakeoverproposalfromastockholderactivist,whichresultedinsignificantcoststotheCompany.Ifsuchaproposalweretobemadeagain,theCompanywouldincursignificantcosts,whichwouldhaveanadverseeffectontheCompany’sfinancialresults.Stockholderactivistsmayalsoseektoinvolvethemselvesinthegovernance,strategicdirectionandoperationsoftheCompany.SuchproposalsmaydisrupttheCompany’sbusinessanddiverttheattentionoftheCompany’smanagementandemployees,andanyperceiveduncertaintiesastotheCompany’sfuturedirectionresultingfromsuchasituationcouldresultinthelossofpotentialbusinessopportunities,theperceptionthattheCompanyneedsachangeinthedirectionofitsbusiness,ortheperceptionthattheCompanyisunstableorlackscontinuity,whichmaybeexploitedbyourcompetitors,causeconcerntoourcurrentorpotentialcustomers,andmaymakeitmoredifficultfortheCompanytoattractandretainqualifiedpersonnelandbusinesspartners,whichcouldadverselyaffecttheCompany’sbusiness.Inaddition,actionsofactiviststockholdersmaycausesignificantfluctuationsinourstockpricebasedontemporaryorspeculativemarketperceptionsorotherfactorsthatdonotnecessarilyreflecttheunderlyingfundamentalsandprospectsofourbusiness.

ITEM1.B.UNRESOLVEDSTAFFCOMMENTS

None.

ITEM2.PROPERTIES

ProductionandDistributionFacilities

TheCompanyownsorleasesandoperates23manufacturingfacilitiesinNorthAmericaandownsorleasesandoperates13manufacturingfacilitiesoutsideNorthAmerica.TheCompanyalsoleases6regionaldistributioncentersinNorthAmericaandseveralotherwarehousefacilitiesintheU.S.andinternationalmarkets.ManagementbelievestheCompany’sownedandleasedproductionanddistributionfacilitiesareadequatetosupportthebusinessefficiently,andthattheCompany’spropertiesandequipmenthavegenerallybeenwellmaintained.TheCompanyiscontinuallyperformingasupply-chainefficiencyanalysis,whichmayleadtoclosuresofdomesticandinternationalmanufacturingfacilitiesandtheredistributionofproductionbetweenitsremainingfacilitiesandcontractmanufacturerstooptimizeavailabilityandcapacityandtoseektoreduceoperatingcosts.

OfficesandResearchandDevelopmentFacilities

Since2011,theCompanyhasleasedafacilitylocatedinPleasanton,CA,whichhousestheCompany’sresearchanddevelopmentgroupaswellasotheradministrativeandoperationalsupportpersonnel.Thefacilityfeaturesstate-of-the-artlabsandopenworkspacestoencouragecreativity,collaborationandinnovation.TheCompanyleasesofficespaceinOakland,CAforitscorporateheadquarters.TheCompanyownsaresearchanddevelopmentfacilitylocatedatitsplantinBuenosAires,Argentina.TheCompanyalsoconductsresearchanddevelopmentactivitiesandengineeringresearchinleasedfacilitiesinMeriden,CT;Willowbrook,IL;Cincinnati,OH;andDurham,NC.Leasedsalesofficesandotherfacilitiesarelocatedatanumberofotherlocations.

Encumbrances

NoneoftheCompany’sownedfacilitiesareencumberedtosecuredebtowedbytheCompany.

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ITEM3.LEGALPROCEEDINGS

TheCompanyissubjecttoroutinelitigationincidentaltoitsbusinessintheUnitedStatesandininternationallocations,includingvariouslawsuitsandclaimsrelatingtoissuessuchascontractdisputes,productliability,patentsandtrademarks,advertising,commercial,administrative,employmentantitrust,securities,consumerclassactionsandothermatters.Althoughtheresultsofclaimsandlitigationcannotbepredictedwithcertainty,basedonmanagement’sanalysis,itistheopinionofmanagementthattheultimatedispositionofthesematters,totheextentnotpreviouslyprovidedforordisclosedintheCompany’sconsolidatedfinancialstatementsinExhibit99.1,willnothaveamaterialadverseeffect,individuallyorintheaggregate,ontheCompany’sconsolidatedfinancialstatementstakenasawhole.

ITEM4.MINESAFETYDISCLOSURES

Notapplicable.

EXECUTIVEOFFICERSOFTHEREGISTRANT

Thenames,ages,yearfirstelectedandcurrenttitlesofeachoftheexecutiveofficersoftheCompanyasofAugust15,2016,aresetforthbelow:

Name Age

YearFirstElectedExecutiveOfficer Title

BennoDorer 52 2009 ChairmanandChiefExecutiveOfficerJamesFoster 53 2009 ExecutiveVicePresident–ProductSupply,EnterprisePerformanceandITStephenM.Robb 51 2011 ExecutiveVicePresident–ChiefFinancialOfficerLauraStein 54 2005 ExecutiveVicePresident–GeneralCounselandCorporateAffairsNikolaosVlahos 48 2013 ExecutiveVicePresident–ChiefOperatingOfficer,Household,Lifestyle

andCoreGlobalFunctionsDawnWilloughby 47 2013 ExecutiveVicePresident–ChiefOperatingOfficer,Cleaning,

InternationalandCorporateStrategyWilliamS.Bailey 50 2016 SeniorVicePresident–CorporateBusinessDevelopmentJonBalousek 47 2013 SeniorVicePresident–GeneralManager,SpecialtyDivisionMichaelR.Costello 50 2011 SeniorVicePresident–InternationalDeniseGarner 53 2015 SeniorVicePresident–ChiefInnovationOfficerMatthewLaszlo 46 2015 SeniorVicePresident–ChiefCustomerOfficerKirstenMarriner 43 2016 SeniorVicePresident–ChiefPeopleOfficerLindaRendle 38 2016 SeniorVicePresident–CleaningDivisionEricReynolds 46 2015 SeniorVicePresident–ChiefMarketingOfficerManjitSingh 47 2016 SeniorVicePresident–ChiefInformationOfficer

Thereisnofamilyrelationshipbetweenanyoftheabove-namedpersons,orbetweenanyofsuchpersonsandanyofthedirectorsoftheCompany.SeeItem10ofPartIIIofthisReportforadditionalinformation.

BennoDoreristhechairmanandchiefexecutiveofficeroftheCompany,apositionhehasheldsinceAugust2016.Priortothisrole,heservedaschiefexecutiveofficeroftheCompanyfromNovember2014untilAugust2016.FromJanuary2013untilNovember2014,heservedasexecutivevicepresident–chiefoperatingofficer,cleaning,internationalandcorporatestrategy.FromMarch2011toDecember2012,heservedasseniorvicepresident–cleaningdivisionandCanada.Heservedasseniorvicepresident–generalmanager,cleaningdivisionfromJune2009toMarch2011.

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JamesFosteristheexecutivevicepresident–productsupply,enterpriseperformanceandIToftheCompany,apositionhehasheldsinceNovember2014.Priortothisrole,heservedasseniorvicepresident–chiefproductsupplyofficerfromJune2009toNovember2014.

StephenM.Robbistheexecutivevicepresident–chieffinancialofficeroftheCompany,apositionhehasheldsinceNovember2014.Priortothisrole,heservedasseniorvicepresident–chieffinancialofficerfromNovember2011toNovember2014.FromJanuary2011untilNovember2011,heservedasvicepresident–globalfinance.Heservedasvicepresident–financialplanning&analysisfromOctober2004toJanuary2011.

LauraSteinistheexecutivevicepresident–generalcounselandcorporateaffairsoftheCompany,apositionshehasheldsinceFebruary2016.Priortothisrole,sheservedasexecutivevicepresident–generalcounselfromFebruary2015toFebruary2016.Sheservedasseniorvicepresident–generalcounselfromJanuary2005toFebruary2015.

NikolaosVlahosistheexecutivevicepresident–chiefoperatingofficer,household,lifestyle,andcoreglobalfunctionsoftheCompany,apositionhehasheldsinceSeptember2014.Priortothisrole,heservedasseniorvicepresident–chiefcustomerofficerfromMarch2013toSeptember2014.FromMarch2011toFebruary2013,heservedasvicepresident–generalmanager,Burt’sBees®.Heservedasvicepresident–generalmanager,laundry,Brita®andGreenWorks®,fromMarch2009toFebruary2011.

DawnWilloughbyistheexecutivevicepresident–chiefoperatingofficer,cleaning,internationalandcorporatestrategyoftheCompany,havingtakenonresponsibilityforcorporatestrategyinAugust2016;andcleaningandinternationalinSeptember2014andforprofessionalproductsinNovember2014.Priortothisrole,sheservedasseniorvicepresident–generalmanager,cleaningdivisionfromJanuary2013toSeptember2014.Sheservedasvicepresident–generalmanager,HomeCare,fromOctober2012toJanuary2013,andvicepresident–generalmanager,Glad®ProductsfromJanuary2010toOctober2012.

WilliamS.Baileyistheseniorvicepresident–corporatebusinessdevelopmentoftheCompany,apositionhehasheldsinceJanuary2016.PriortojoiningtheCompany,heservedasvicepresident–corporateandbusinessdevelopmentatTripAdvisor,fromJune2012toJanuary2016.Heservedasvicepresident-corporatedevelopmentatAncestry.com,fromJune2011toJune2012.FromAugust2009toJune2011,heservedasvicepresident–corporateandbusinessdevelopmentatCheckPointSoftwareTechnologiesInc.

JonBalousekisseniorvicepresident–generalmanager,specialtydivisionoftheCompany,apositionhehasheldsinceJanuary2013.Priortothisrole,heservedasvicepresident–generalmanager,litter,foodandcharcoalfromOctober2011toDecember2012,andvicepresident–marketing,cleaningdivisionfromOctober2008toSeptember2011.

MichaelR.Costelloistheseniorvicepresident–internationaloftheCompany,apositionhehasheldsinceSeptember2013.Priortothisrole,heservedasvicepresident–generalmanager,international,fromMarch2011toAugust2013.FromJuly2009throughMarch2011,heservedasvicepresident–generalmanager,LatinAmericaandEurope.

DeniseGarneristheseniorvicepresident-chiefinnovationofficeroftheCompany,apositionshehasheldsinceJanuary2015.Priortothisrole,sheservedasvicepresident,R&D–globalcleaning&international,fromJanuary2010toDecember2014.

MatthewLaszloistheseniorvicepresident–chiefcustomerofficeroftheCompany,apositionhehasheldsinceOctober2014.Priortothisrole,heservedasvicepresident–generalmanager,professionalproductsdivision,fromOctober2013toOctober2014.FromJanuary2012toOctober2013heservedasvicepresident–sales,professionalproductsdivision.FromJanuary2010toJanuary2012heservedasdirector–fieldsales,professionalproductsdivision.

KirstenMarrineristheseniorvicepresident–chiefpeopleofficeroftheCompany,apositionshehasheldsinceMarch2016.PriortojoiningtheCompany,sheservedasseniorvicepresidentandchiefhumanresourcesofficeratOmnicare,fromMarch2013toAugust2015.Sheservedinvariousleadershiproles,includingasseniorvicepresident,directoroftalentmanagementanddevelopmentatFifthThirdBank,fromOctober2004toMarch2013.

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LindaRendleisseniorvicepresident–cleaningdivisionoftheCompany,apositionshehasheldsinceAugust2016.Priortothisrole,sheservedasvicepresident–generalmanager,homecarefromOctober2014toAugust2016.FromApril2012toOctober2014,sheservedasvicepresident–sales,cleaningdivision.FromAugust2011toApril2012,sheservedasdirectorofsalesplanning–litter,food&charcoal.FromJanuary2010toAugust2011,sheservedasdirectorofsales–supplychain.

EricReynoldsistheseniorvicepresident–chiefmarketingofficeroftheCompany,apositionhehasheldsinceJanuary2015.Priortothisrole,heservedasvicepresident–generalmanager,Europe,MiddleEast,AfricaandAsiafromMay2012toJanuary2015.FromMay2011toApril2012hewasdirector,Internationalbusinessdevelopment.FromJune2008toApril2011hewasgeneralmanager,Caribbean.

ManjitSinghistheseniorvicepresident–chiefinformationofficeroftheCompany,apositionhehasheldsinceDecember2014.InAugust2016,hejoinedtheCompany’sexecutivecommittee.PriortojoiningtheCompany,heservedasheadofverticalconsultingatBox,Inc.,fromFebruary2014toNovember2014.FromSeptember2010toJanuary2013,heservedasGlobalChiefInformationOfficeratLasVegasSandsCorp.

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PARTII

ITEM5.MARKETFORREGISTRANT’SCOMMONEQUITY,RELATEDSTOCKHOLDERMATTERSANDISSUERPURCHASESOFEQUITYSECURITIES

MarketInformation

TheCompany’scommonstockislistedontheNewYorkStockExchange.ThehighandlowsalespricesquotedfortheNewYorkStockExchange-CompositeTransactionsReportforeachquarterlyperiodduringthepasttwofiscalyearsappearintheNotestoConsolidatedFinancialStatementsinExhibit99.1,incorporatedhereinbyreference.

Holders

ThenumberofrecordholdersoftheCompany’scommonstockasofJuly29,2016,was10,995basedoninformationprovidedbytheCompany’stransferagent.

Dividends

TheamountofquarterlydividendsdeclaredwithrespecttotheCompany’scommonstockduringthepasttwofiscalyearsappearsintheNotestoConsolidatedFinancialStatementsinExhibit99.1,incorporatedhereinbyreference.

EquityCompensationPlanInformation

SeePartIII,Item12hereof.

IssuerPurchasesofEquitySecurities

ThefollowingtablesetsforththepurchasesoftheCompany’ssecuritiesbytheCompanyandanyaffiliatedpurchaserswithinthemeaningofRule10b-18(a)(3)(17CFR240.10b-18(a)(3))duringthefourthquarteroffiscalyear2016.

[a] [b] [c] [d]

Period TotalNumberofShares(orUnits)Purchased(1)

AveragePricePaidperShare(orUnit)

TotalNumberofShares(orUnits)

PurchasedasPartofPubliclyAnnouncedPlansorPrograms

MaximumNumber(orApproximateDollarValue)thatMayYet

BePurchasedUnderthePlansorPrograms

April1to30,2016 257,617 $124.35 257,617 (2)

May1to31,2016 30,315 126.69 30,315 (2)

June1to30,2016 - - - (2)

287,932 $ 124.59 287,932

(1)SharespurchasedinApril2016andMay2016wereacquiredpursuanttotheCompany’ssharerepurchaseprogramtooffsettheimpactofsharedilutionrelatedtoshare-basedawards(theEvergreenProgram).

(2) TheCompanyhastwosharerepurchaseprograms:anopen-marketpurchaseprogramwithanauthorizedaggregatepurchaseamountofupto$750million,allofwhichwasavailableforsharerepurchasesasofJune30,2016,andtheEvergreenProgram,thepurposeofwhichistooffsettheimpactofanticipatedsharedilutionrelatedtoshare-basedawardsandwhichhasnospecifiedcap.

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ITEM6.SELECTEDFINANCIALDATA

Thisinformationappearsunder“Five-YearFinancialSummary”inExhibit99.1,incorporatedhereinbyreference.

ITEM7.MANAGEMENT’SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONS

Thisinformationappearsunder“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations,”inExhibit99.1,incorporatedhereinbyreference.

ITEM7.A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISK

Thisinformationappearsunder“QuantitativeandQualitativeDisclosuresaboutMarketRisk”in“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations,”inExhibit99.1,incorporatedhereinbyreference.

ITEM8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATA

ThesestatementsanddataappearinExhibit99.1,incorporatedhereinbyreference.

ITEM9.CHANGESINANDDISAGREEMENTSWITHACCOUNTANTSONACCOUNTINGANDFINANCIALDISCLOSURE

None.

ITEM9.A.CONTROLSANDPROCEDURES

DisclosureControlsandProcedures

TheCompany’smanagement,withtheparticipationoftheCompany’schiefexecutiveofficerandchieffinancialofficer,evaluatedtheeffectivenessoftheCompany’sdisclosurecontrolsandproceduresasoftheendoftheperiodcoveredbythisReport.Basedonthatevaluation,thechiefexecutiveofficerandchieffinancialofficerconcludedthattheCompany’sdisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisReport,wereeffectivesuchthattheinformationrequiredtobedisclosedbytheCompanyinreportsfiledundertheExchangeActis(i)recorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedintheSEC’srulesandformsand(ii)accumulatedandcommunicatedtomanagement,includingthechiefexecutiveofficerandchieffinancialofficer,asappropriatetoallowtimelydecisionsregardingdisclosure.

Management’sReportonInternalControlOverFinancialReporting

Management’sreportoninternalcontroloverfinancialreportingissetforthinExhibit99.1,andisincorporatedhereinbyreference.TheCompany’sindependentregisteredpublicaccountingfirm,Ernst&Young,LLP,hasauditedtheeffectivenessoftheCompany’sinternalcontroloverfinancialreportingasofJune30,2016.See“ReportofIndependentRegisteredPublicAccountingFirm,”whichappearsinExhibit99.1.

ChangeinInternalControlOverFinancialReporting

NochangeintheCompany’sinternalcontroloverfinancialreportingoccurredduringthefourthfiscalquarterofthefiscalyearendedJune30,2016,thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theCompany’sinternalcontroloverfinancialreporting.

ITEM9.B.OTHERINFORMATION

Notapplicable.

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PARTIII

ITEM10.DIRECTORS,EXECUTIVEOFFICERSANDCORPORATEGOVERNANCE

PursuanttoInstruction3toItem401(b)ofRegulationS-K,informationregardingtheexecutiveofficersoftheregistrantisreportedinPartIofthisReport.

TheCompanyhasadoptedaCodeofConductthatappliestoitsprincipalexecutiveofficer,principalfinancialofficerandprincipalaccountingofficer,amongothers.TheCodeofConductislocatedontheCompany’swebsiteatTheCloroxCompany.comunderCorporateResponsibility/Performance/CorporateGovernanceorhttp://www.thecloroxcompany.com/corporate-responsibility/performance/corporate-governance.TheCompanyintendstosatisfytherequirementunderItem5.05ofForm8-Kregardingdisclosureofamendmentsto,orwaiversfrom,provisionsofitsCodeofConductbypostingsuchinformationontheCompany’swebsite.TheCompany’swebsitealsocontainsitscorporategovernanceguidelinesandthechartersofitsprincipalboardcommittees.

InformationregardingtheCompany’sdirectors,compliancewithSection16(a)oftheExchangeActandcorporategovernancesetforthintheProxyStatementisincorporatedhereinbyreference.

ITEM11.EXECUTIVECOMPENSATION

Informationregardingexecutiveanddirectorcompensation,ManagementDevelopmentandCompensationCommitteeinterlocksandinsiderparticipationandthereportoftheManagementDevelopmentandCompensationCommitteeoftheCompany’sboardofdirectorssetforthintheProxyStatementisincorporatedhereinbyreference.

ITEM12.SECURITYOWNERSHIPOFCERTAINBENEFICIALOWNERSANDMANAGEMENTANDRELATEDSTOCKHOLDERMATTERS

Informationregardingsecurityownershipofcertainbeneficialowners,managementanddirectorsandsecuritiesauthorizedforissuanceunderequitycompensationplanssetforthintheProxyStatementisincorporatedhereinbyreference.

ITEM13.CERTAINRELATIONSHIPSANDRELATEDTRANSACTIONS,ANDDIRECTORINDEPENDENCE

InformationregardingcertainrelationshipsandrelatedtransactionsanddirectorindependencesetforthintheProxyStatementisincorporatedhereinbyreference.

ITEM14.PRINCIPALACCOUNTINGFEESANDSERVICES

InformationregardingprincipalaccountingfeesandservicessetforthintheProxyStatementisincorporatedhereinbyreference.

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PARTIV

ITEM15.EXHIBITSANDFINANCIALSTATEMENTSCHEDULES

(a)FinancialStatementsandSchedules:

ConsolidatedFinancialStatementsandReportsofIndependentRegisteredPublicAccountingFirmincludedinExhibit99.1,incorporatedhereinbyreference.

ReportsofIndependentRegisteredPublicAccountingFirm.

ConsolidatedStatementsofEarningsforthefiscalyearsendedJune30,2016,2015and2014.

ConsolidatedStatementsofComprehensiveIncomeforthefiscalyearsendedJune30,2016,2015and2014.

ConsolidatedBalanceSheetsasofJune30,2016and2015.

ConsolidatedStatementsofStockholders’EquityforthefiscalyearsendedJune30,2016,2015and2014.

ConsolidatedStatementsofCashFlowsforthefiscalyearsendedJune30,2016,2015and2014.

NotestoConsolidatedFinancialStatements.

ValuationandQualifyingAccountsandReservesincludedinExhibit99.2,incorporatedhereinbyreference.

(b) Exhibits:

IncorporatedbyReference

ExhibitNumber ExhibitDescription Form FileNo. Exhibit FilingDate

3.1 RestatedCertificateofIncorporation. 10-Q 001-07151 3(iii) February14,20003.2 Bylaws(amendedandrestated). 8-K 001-07151 3.2 August28,20153.3 CertificateofDesignationsforTheCloroxCompanySeriesAJunior

ParticipatingPreferredStock. 8-K 001-07151 3.1 July19,2011

4.1 Indenture,datedasofDecember3,2004,betweentheCompanyandTheBankofNewYorkTrustCompanyN.A.,astrustee.

8-K 001-07151 4.1 December3,2004

4.2 Indenture,datedasofOctober9,2007,betweentheCompanyandTheBankofNewYorkTrustCompanyN.A.,astrustee.

S-3ASR 333-200722 4.1 December4,2014

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IncorporatedbyReference

ExhibitNumber ExhibitDescription Form FileNo. Exhibit FilingDate

4.3 FirstSupplementalIndenture,datedasofNovember9,2009,amongtheCompany,TheBankofNewYorkTrustCompanyN.A.,andWellsFargoBank,NationalAssociation,astrustee.

S-3ASR 333-200722 4.2 December4,2014

4.4 SecondSupplementalIndenture,datedasofNovember9,2009,betweentheCompanyandWellsFargoBank,NationalAssociation,astrustee.

S-3ASR 333-200722 4.3 December4,2014

4.5 ThirdSupplementalIndenture,datedasofNovember17,2011,betweenthecompanyandWellsFargoBank,NationalAssociation,astrustee.

S-3ASR 333-200722 4.4 December4,2014

4.6 FourthSupplementalIndenture,datedasofSeptember13,2012,betweentheCompanyandWellsFargoBank,NationalAssociation,astrustee.

S-3ASR 333-200722 4.5 December4,2014

4.7 FifthSupplementalIndenture,datedasofDecember9,2014,betweentheCompanyandWellsFargoBank,NationalAssociation,astrustee

8-K 001-07151 4.1 December9,2014

10.1* TheCloroxCompanyAmendedandRestatedIndependentDirectors’DeferredCompensationPlan,effectiveasofNovember16,2005,andamendedandrestatedasofFebruary7,2008.

10-Q 001-07151 10.55 May2,2008

10.2* TheCloroxCompanyNon-QualifiedDeferredCompensationPlan,adoptedasofJanuary1,1996,andamendedandrestatedasofJuly20,2004.

10-K 001-07151 10(x) August27,2004

10.3* AmendmentNo.1toTheCloroxCompanyNon-QualifiedDeferredCompensationPlan.

10.4* TheCloroxCompanyAnnualIncentivePlan,amendedandrestatedasofSeptember17,2013.

10-K 001-07151 10.8 August25,2014

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IncorporatedbyReference

ExhibitNumber ExhibitDescription Form FileNo. Exhibit FilingDate

10.5* TheCloroxCompany2005StockIncentivePlan,amendedandrestatedasofNovember14,2012.

10-Q 001-07151 10.1 February5,2013

10.6* FormofPerformanceShareAwardAgreementundertheCompany’s2005StockIncentivePlanforawardsmadein2013.

10-K 001-07151 10.12 August25,2014

10.7* FormofPerformanceShareAwardAgreementundertheCompany’s2005StockIncentivePlanforawardsmadein2014.

10-K 001-07151 10.9 August21,2015

10.8* FormofPerformanceShareAwardAgreementundertheCompany’s2005StockIncentivePlanforawardsmadein2015.

10-Q 001-07151 10.1 November2,2015

10.9* FormofRestrictedStockUnitAwardAgreementundertheCompany’s2005StockIncentivePlan.

10-K 001-07151 10.13 August23,2013

10.10* FormofNonqualifiedStockOptionAwardAgreementundertheCompany’s2005StockIncentivePlan.

10-K 001-07151 10.14 August25,2014

10.11* TheCloroxCompanyAmendedandRestated2005NonqualifiedDeferredCompensationPlan,effectiveJanuary1,2008.

10-K 001-07151 10.18 August19,2008

10.12* AmendmentNo.1toTheCloroxCompanyAmendedandRestated2005NonqualifiedDeferredCompensationPlan.

10-K 001-07151 10.18 August26,2011

10.13* AmendmentNo.2toTheCloroxCompanyAmendedandRestated2005NonqualifiedDeferredCompensationPlan.

10.14* TheCloroxCompanySupplementalExecutiveRetirementPlan,asrestatedeffectiveJanuary5,2005,asrevisedAugust13,2009.

10-Q 001-07151 10.17 November3,2009

10.15* AmendmentNo.1toTheCloroxCompanySupplementalExecutiveRetirementPlan,effectiveasofJuly29,2011.

10-Q 001-07151 10.21 November3,2011

10.16* AmendmentNo.2toTheCloroxCompanySupplementalExecutiveRetirementPlan,effectiveasofSeptember11,2012.

10-Q 001-07151 10.2 November2,2012

10.17* TheCloroxCompanyExecutiveIncentiveCompensationPlan,amendedandrestatedasofFebruary7,2008.

10-Q 001-07151 10.58 May2,2008

10.18* FormofIndemnificationAgreement. 10-Q 001-07151 10.27 May4,2010

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IncorporatedbyReference

ExhibitNumber ExhibitDescription Form FileNo. Exhibit FilingDate

10.19* FirstAmendedandRestatedExecutiveChangeinControlSeverancePlan,effectiveNovember20,2014.

10-Q 001-07151 10.1 February5,2015

10.20* SeverancePlanforCloroxExecutiveCommitteeMembers,amendedandrestatedeffectiveNovember20,2014.

10-Q 001-07151 10.2 February5,2015

10.21* TheCloroxCompanyExecutiveRetirementPlan,effectiveasofJuly1,2011.

10-Q 001-07151 10.27 May4,2011

10.22* AmendmentNo.1toTheCloroxCompanyExecutiveRetirementPlan.10.23* TheCloroxCompany2011NonqualifiedDeferredCompensationPlan,

effectiveasofJuly1,2011.10-K 001-07151 10.29 August26,2011

10.24* AmendmentNo.1toTheCloroxCompany2011NonqualifiedDeferredCompensationPlan.

10.25 CreditAgreement,datedasofOctober1,2014amongTheCloroxCompany,thelenderslistedtherein,Citibank,N.A.,JPMorganChaseBank,N.A.andWellsFargoBank,NationalAssociation,asAdministrativeAgents,andCitibank,N.A.asServicingAgent.

8-K 001-07151 10.1 October7,2014

10.26(+) AmendedandRestatedJointVentureAgreementdatedasofJanuary31,2003,betweenTheGladProductsCompanyandcertainaffiliatesandTheProcterandGambleCompanyandcertainaffiliates.

21 Subsidiaries.23 ConsentofIndependentRegisteredPublicAccountingFirm.31.1 CertificationoftheChiefExecutiveOfficerofTheCloroxCompany

pursuanttoSection302oftheSarbanes-OxleyActof2002.31.2 CertificationoftheChiefFinancialOfficerofTheCloroxCompany

pursuanttoSection302oftheSarbanes-OxleyActof2002.32 CertificationoftheChiefExecutiveOfficerandChiefFinancialOfficer

ofTheCloroxCompanypursuanttoSection906oftheSarbanes-OxleyActof2002.

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IncorporatedbyReference

ExhibitNumber ExhibitDescription Form FileNo. Exhibit FilingDate

99.1 Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations,ConsolidatedFinancialStatements,Management’sReportonInternalControloverFinancialReportingandReportsofIndependentRegisteredPublicAccountingFirm.

99.2 ValuationandQualifyingAccountsandReserves.99.3 ReconciliationofEconomicProfit(Unaudited).101 ThefollowingmaterialsfromTheCloroxCompany’sAnnualReporton

Form10-KfortheyearendedJune30,2016areformattedinextensibleBusinessReportingLanguage(XBRL):(i)theConsolidatedStatementsofEarnings,(ii)theConsolidatedStatementsofComprehensiveIncome,(iii)theConsolidatedBalanceSheets,(iv)theConsolidatedStatementsofStockholders’Equity,(v)theConsolidatedStatementsofCashFlowsand(vi)NotestoConsolidatedFinancialStatements.

____________________

(*)Indicatesamanagementordirectorcontractorcompensatoryplanorarrangementrequiredtobefiledasanexhibittothisreport.(+) Confidentialtreatmenthasbeenrequestedforcertaininformationcontainedinthisdocument.Suchinformationhasbeenomittedandfiledseparatelywith

theSecuritiesandExchangeCommission.

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SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

THECLOROXCOMPANYDate:August16,2016 By:/s/BennoDorer

B.Dorer ChiefExecutiveOfficer

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheregistrantandinthecapacitiesandonthedatesindicated.

Signature Title Date/s/R.H.Carmona Director August16,2016R.H.Carmona/s/S.C.Fleischer Director August16,2016S.C.Fleischer/s/G.J.Harad Director August16,2016G.J.Harad/s/E.Lee Director August16,2016E.Lee/s/R.W.Matschullat Director August16,2016R.W.Matschullat/s/J.Noddle Director August16,2016J.Noddle/s/R.M.Rebolledo Director August16,2016R.M.Rebolledo/s/P.Thomas-Graham Director August16,2016P.Thomas-Graham/s/C.M.Ticknor Director August16,2016C.M.Ticknor/s/C.J.Williams Director August16,2016C.J.Williams

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/s/A.D.D.MacKay Director August16,2016A.D.D.MacKay/s/B.Dorer ChairmanandChiefExecutiveOfficer August16,2016B.Dorer (PrincipalExecutiveOfficer)/s/S.M.Robb ExecutiveVicePresident—ChiefFinancialOfficer August16,2016S.M.Robb (PrincipalFinancialOfficer)/s/T.Johnson VicePresident—GlobalBusinessServicesandChiefAccountingOfficer August16,2016T.Johnson (PrincipalAccountingOfficer)

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INDEXOFEXHIBITS

IncorporatedbyReference

ExhibitNumber ExhibitDescription Form FileNo. Exhibit FilingDate

3.1 RestatedCertificateofIncorporation. 10-Q 001-07151 3(iii) February14,20003.2 Bylaws(amendedandrestated). 8-K 001-07151 3.1 August28,20153.3 CertificateofDesignationsforTheCloroxCompanySeriesAJunior

ParticipatingPreferredStock.8-K 001-07151 3.1 July19,2011

4.1 Indenture,datedasofDecember3,2004,betweentheCompanyandTheBankofNewYorkTrustCompanyN.A.,astrustee.

8-K 001-07151 4.1 December3,2004

4.2 Indenture,datedasofOctober9,2007,betweentheCompanyandTheBankofNewYorkTrustCompanyN.A.,astrustee.

S-3ASR 333-200722 4.1 December4,2014

4.3 FirstSupplementalIndenture,datedasofNovember9,2009,amongtheCompany,TheBankofNewYorkTrustCompanyN.A.,andWellsFargoBank,NationalAssociation,astrustee.

S-3ASR 333-200722 4.2 December4,2014

4.4 SecondSupplementalIndenture,datedasofNovember9,2009,betweentheCompanyandWellsFargoBank,NationalAssociation,astrustee.

S-3ASR 333-200722 4.3 December4,2014

4.5 ThirdSupplementalIndenture,datedasofNovember17,2011,betweenthecompanyandWellsFargoBank,NationalAssociation,astrustee.

S-3ASR 333-200722 4.4 December4,2014

4.6 FourthSupplementalIndenture,datedasofSeptember13,2012,betweentheCompanyandWellsFargoBank,NationalAssociation,astrustee.

S-3ASR 333-200722 4.5 December4,2014

4.7 FifthSupplementalIndenture,datedasofDecember9,2014,betweentheCompanyandWellsFargoBank,NationalAssociation,astrustee

8-K 001-07151 4.1 December9,2014

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IncorporatedbyReference

ExhibitNumber ExhibitDescription Form FileNo. Exhibit FilingDate

10.1* TheCloroxCompanyAmendedandRestatedIndependentDirectors’DeferredCompensationPlan,effectiveasofNovember16,2005,andamendedandrestatedasofFebruary7,2008.

10-Q 001-07151 10.55 May2,2008

10.2* TheCloroxCompanyNon-QualifiedDeferredCompensationPlan,adoptedasofJanuary1,1996,andamendedandrestatedasofJuly20,2004.

10-K 001-07151 10(x) August27,2004

10.3* AmendmentNo.1toTheCloroxCompanyNon-QualifiedDeferredCompensationPlan

10.4* TheCloroxCompanyAnnualIncentivePlan,amendedandrestatedasofSeptember17,2013.

10-K 001-07151 10.8 August25,2014

10.5* TheCloroxCompany2005StockIncentivePlan,amendedandrestatedasofNovember14,2012.

10-Q 001-07151 10.1 February5,2013

10.6* FormofPerformanceShareAwardAgreementundertheCompany’s2005StockIncentivePlanforawardsmadein2013.

10-K 001-07151 10.12 August25,2014

10.7* FormofPerformanceShareAwardAgreementundertheCompany’s2005StockIncentivePlanforawardsmadein2014.

10-K 001-07151 10.9 August21,2015

10.8 FormofPerformanceShareAwardAgreementundertheCompany’s2005StockIncentivePlanforawardsmadein2015.

10-Q 001-07151 10.1 November2,2015

10.9* FormofRestrictedStockUnitAwardAgreementundertheCompany’s2005StockIncentivePlan.

10-K 001-07151 10.13 August23,2013

10.10* FormofNonqualifiedStockOptionAwardAgreementundertheCompany’s2005StockIncentivePlan.

10-K 001-07151 10.14 August25,2014

10.11* TheCloroxCompanyAmendedandRestated2005NonqualifiedDeferredCompensationPlan,effectiveJanuary1,2008.

10-K 001-07151 10.18 August19,2008

10.12* AmendmentNo.1toTheCloroxCompanyAmendedandRestated2005NonqualifiedDeferredCompensationPlan.

10-K 001-07151 10.18 August26,2011

10.13* AmendmentNo.2toTheCloroxCompanyAmendedandRestated2005NonqualifiedDeferredCompensationPlan.

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IncorporatedbyReference

ExhibitNumber ExhibitDescription Form FileNo. Exhibit FilingDate

10.14* TheCloroxCompanySupplementalExecutiveRetirementPlan,asrestatedeffectiveJanuary5,2005,asrevisedAugust13,2009.

10-Q 001-07151 10.17 November3,2009

10.15* AmendmentNo.1toTheCloroxCompanySupplementalExecutiveRetirementPlan,effectiveasofJuly29,2011.

10-Q 001-07151 10.21 November3,2011

10.16* AmendmentNo.2toTheCloroxCompanySupplementalExecutiveRetirementPlan,effectiveasofSeptember11,2012.

10-Q 001-07151 10.2 November2,2012

10.17* TheCloroxCompanyExecutiveIncentiveCompensationPlan,amendedandrestatedasofFebruary7,2008.

10-Q 001-07151 10.58 May2,2008

10.18* FormofIndemnificationAgreement. 10-Q 001-07151 10.27 May4,201010.19* FirstAmendedandRestatedExecutiveChangeinControlSeverance

Plan,effectiveNovember20,2014.10-Q 001-07151 10.1 February5,2015

10.20* SeverancePlanforCloroxExecutiveCommitteeMembers,amendedandrestatedeffectiveNovember20,2014.

10-Q 001-07151 10.2 February5,2015

10.21* TheCloroxCompanyExecutiveRetirementPlan,effectiveasofJuly1,2011.

10-Q 001-07151 10.27 May4,2011

10.22* AmendmentNo.1toTheCloroxCompanyExecutiveRetirementPlan.10.23* TheCloroxCompany2011NonqualifiedDeferredCompensationPlan,

effectiveasofJuly1,2011.10-K 001-07151 10.29 August26,2011

10.24* AmendmentNo.1toTheCloroxCompany2011NonqualifiedDeferredCompensationPlan.

10.25 CreditAgreement,datedasofOctober1,2014amongTheCloroxCompany,thelenderslistedtherein,Citibank,N.A.,JPMorganChaseBank,N.A.andWellsFargoBank,NationalAssociation,asAdministrativeAgents,andCitibank,N.A.asServicingAgent.

8-K 001-07151 10.1 October7,2014

10.26(+) AmendedandRestatedJointVentureAgreementdatedasofJanuary31,2003,betweenTheGladProductsCompanyandcertainaffiliatesandTheProcterandGambleCompanyandcertainaffiliates.

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IncorporatedbyReference

ExhibitNumber ExhibitDescription Form FileNo. Exhibit FilingDate

21 Subsidiaries.23 ConsentofIndependentRegisteredPublicAccountingFirm.31.1 CertificationoftheChiefExecutiveOfficerofTheCloroxCompany

pursuanttoSection302oftheSarbanes-OxleyActof2002.31.2 CertificationoftheChiefFinancialOfficerofTheCloroxCompany

pursuanttoSection302oftheSarbanes-OxleyActof2002.32 CertificationoftheChiefExecutiveOfficerandChiefFinancialOfficerof

TheCloroxCompanypursuanttoSection906oftheSarbanes-OxleyActof2002.

99.1 Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations,ConsolidatedFinancialStatements,Management’sReportonInternalControloverFinancialReportingandReportsofIndependentRegisteredPublicAccountingFirm.

99.2 ValuationandQualifyingAccountsandReserves.99.3 ReconciliationofEconomicProfit(Unaudited).101 ThefollowingmaterialsfromTheCloroxCompany’sAnnualReporton

Form10-KfortheyearendedJune30,2015areformattedinextensibleBusinessReportingLanguage(XBRL):(i)theConsolidatedStatementsofEarnings,(ii)theConsolidatedStatementsofComprehensiveIncome,(iii)theConsolidatedBalanceSheets,(iv)theConsolidatedStatementsofStockholders’Equity,(v)theConsolidatedStatementsofCashFlowsand(vi)NotestoConsolidatedFinancialStatements.

____________________

(*)Indicatesamanagementordirectorcontractorcompensatoryplanorarrangementrequiredtobefiledasanexhibittothisreport.(+) Confidentialtreatmenthasbeenrequestedforcertaininformationcontainedinthisdocument.Suchinformationhasbeenomittedandfiledseparatelywith

theSecuritiesandExchangeCommission.

35

Exhibit10.3

THECLOROXCOMPANYNONQUALIFIEDDEFERREDCOMPENSATIONPLAN

AMENDMENTNO.1

PursuanttoSection6.06ofTheCloroxCompanyNonqualifiedDeferredCompensationPlan(the“Plan”),thePlanisherebyamendedasfollows,effectiveasofJuly1,2016:

3.Section5.01(b)ofthePlanisherebydeletedinitsentiretyandreplacedwiththefollowing:

“(b)SubsequentElections.AParticipantmaychangetheformofadistributionelectionwithrespecttohisorherentirevestedAccountbysubmittingthechangetotheCommitteeinwriting,atleasttwocalendaryearsbeforetheParticipanthasaTerminationofEmployment.UnlessotherwiseapprovedbytheAdministratorinitssolediscretion,onlyonechangeelectionunderthisparagraph(b)canbemadefortheParticipant’sentirevestedAccount.Achangeelectionmadeunderthisparagraph(b)shallbeirrevocableasofDecember31ofthecalendaryearthatisatleastthesecondcalendaryearpriortothecalendaryearinwhichtheParticipanthasaTerminationofEmployment.Ifsuchasubsequentelectionisnotvalidbecause,forexample,itisnotmadeinatimelymanner,theParticipant’smostrecenteffectivedistributionelectionunderthisSection5.01willgovernpaymentoftheParticipant’sentirevestedAccountupontheParticipant’sTerminationofEmployment.”

ExceptasmodifiedbythisAmendmentNo.1,thePlanshallremainunchangedandshallremaininfullforceandeffect.

INWITNESSWHEREOF,TheCloroxCompanyhascausedthisAmendmentNo.1tobedulyexecutedasofthedayandyearfirstwrittenabove.

TheCloroxCompanyBy:/s/KirstenMarriner

Exhibit10.13

THECLOROXCOMPANYAMENDEDANDRESTATED

2005NONQUALIFIEDDEFERREDCOMPENSATIONPLANAMENDMENTNO.2

PursuanttoSection6.07ofTheCloroxCompany2005NonqualifiedDeferredCompensationPlan,asamended(the“Plan”),thePlanisherebyamendedasfollows,effectiveasofJuly1,2016:

2.Section5.01(b)ofthePlanisherebydeletedinitsentiretyandreplacedwiththefollowing:

“(b)SubsequentElectionsforElectiveDeferrals.AParticipantmaychangetheformofadistributionelection(whetherpayablein-serviceoruponorfollowingSeparationFromService)withrespecttoalloraportionofhisorherAccountbysubmittingthechangetotheCommittee,inwriting,atleastonecalendaryearbeforetheoriginallyscheduleddistributiondate.UnlessotherwiseapprovedbytheAdministratorinitssolediscretion,onlyonechangeelectionunderthisparagraph(b)canbemadeforamountscreditedtoaParticipant’sAccountforanyspecificPlanYear.Anysuchchangeelectionwilldeferthetimingofcommencementofthedistributionforfiveyearsaftertheoriginallyscheduleddistributiondate.Achangeelectionmadeunderthisparagraph(b)shallbeirrevocableasofthedatethatisoneyearpriortotheoriginallyscheduleddistributiondate.Ifsuchasubsequentelectionisnotvalidbecause,forexample,itisnotmadeinatimelymanner,theParticipant’smostrecenteffectivedistributionelectionwillgovernthepaymentoftheParticipant’sAccount.”

ExceptasmodifiedbythisAmendmentNo.2,thePlanshallremainunchangedandshallremaininfullforceandeffect.

INWITNESSWHEREOF,TheCloroxCompanyhascausedthisAmendmentNo.2tobedulyexecutedasofthedayandyearfirstwrittenabove.

TheCloroxCompanyBy:/s/KirstenMarriner

Exhibit10.22

THECLOROXCOMPANYEXECUTIVERETIREMENTPLAN

AMENDMENTNO.1

PursuanttoSection6.07ofTheCloroxCompanyExecutiveRetirementPlan(the“Plan”),thePlanisherebyamendedasfollows,effectiveasofJuly1,2016:

4.Section5.01(b)ofthePlanisherebydeletedinitsentiretyandreplacedwiththefollowing:

“(b)SubsequentElection.AParticipantmaychangetheformofadistributionelectionwithrespecttoalloraportionofhisorherAccountbysubmittingthechangetotheCommittee,inwriting,atleastonecalendaryearbeforetheoriginallyscheduleddistributiondate.UnlessotherwiseapprovedbytheAdministratorinitssolediscretion,onlyonechangeelectionunderthisparagraph(b)canbemadeforamountscreditedtoaParticipant’sAccountforanyspecificPlanYear.Anysuchchangeelectionwilldeferthetimingofcommencementofthedistributionforfiveyearsaftertheoriginallyscheduleddistributiondate.Achangeelectionmadeunderthisparagraph(b)shallbeirrevocableasofthedatethatisoneyearpriortotheoriginallyscheduleddistributiondate.Ifsuchasubsequentelectionisnotvalidbecause,forexample,itisnotmadeinatimelymanner,theParticipant’smostrecenteffectivedistributionelectionwillgovernthepaymentoftheParticipant’sAccount.”

ExceptasmodifiedbythisAmendmentNo.1,thePlanshallremainunchangedandshallremaininfullforceandeffect.

INWITNESSWHEREOF,TheCloroxCompanyhascausedthisAmendmentNo.1tobedulyexecutedasofthedayandyearfirstwrittenabove.

TheCloroxCompanyBy:/s/KirstenMarriner

Exhibit10.24

THECLOROXCOMPANY2011NONQUALIFIEDDEFERREDCOMPENSATIONPLAN

AMENDMENTNO.1

PursuanttoSection6.07ofTheCloroxCompany2011NonqualifiedDeferredCompensationPlan(the“Plan”),thePlanisherebyamendedasfollows,effectiveasofJuly1,2016:

1.Section5.01(c)ofthePlanisherebydeletedinitsentiretyandreplacedwiththefollowing:

“(c)SubsequentElectionsforElectiveDeferrals.AParticipantmaychangetheformofadistributionelection(whetherpayablein-serviceoruponorfollowingSeparationFromService)withrespecttoalloraportionofhisorherAccountbysubmittingthechangetotheCommittee,inwriting,atleastonecalendaryearbeforetheoriginallyscheduleddistributiondate.UnlessotherwiseapprovedbytheAdministratorinitssolediscretion,onlyonechangeelectionunderthisparagraph(c)canbemadeforamountscreditedtoaParticipant’sAccountforanyspecificPlanYear.Anysuchchangeelectionwilldeferthetimingofcommencementofthedistributionforfiveyearsaftertheoriginallyscheduleddistributiondate.Achangeelectionmadeunderthisparagraph(c)shallbeirrevocableasofthedatethatisoneyearpriortotheoriginallyscheduleddistributiondate.Ifsuchasubsequentelectionisnotvalidbecause,forexample,itisnotmadeinatimelymanner,theParticipant’smostrecenteffectivedistributionelectionwillgovernthepaymentoftheParticipant’sAccount.”

ExceptasmodifiedbythisAmendmentNo.1,thePlanshallremainunchangedandshallremaininfullforceandeffect.

INWITNESSWHEREOF,TheCloroxCompanyhascausedthisAmendmentNo.1tobedulyexecutedasofthedayandyearfirstwrittenabove.

TheCloroxCompanyBy:/s/KirstenMarriner

Exhibit10.26

EXECUTIONCOPY

AMENDEDANDRESTATEDJOINTVENTUREAGREEMENT

DATEDASOFJANUARY31,2003

BETWEEN

THEGLADPRODUCTSCOMPANYANDITSAFFILIATESIDENTIFIEDHEREIN

AND

THEPROCTER&GAMBLECOMPANYANDITSAFFILIATEIDENTIFIEDHEREIN

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

TABLEOFCONTENTS

PageARTICLEI DEFINITIONS 2

Section1.1 DefinedTerms 2Section1.2 OtherDefinitions 14Section1.3 OtherDefinitionalProvisions;Interpretation 16

ARTICLEII CONTRIBUTIONSANDALLOCATIONSOFINTEREST 16Section2.1 ClosingofJointVenture 16Section2.2 CloroxContributionandRelatedMatters 16Section2.3 ContributionbyP&GandRelatedMatters 19Section2.4 NatureofJVInterest 20Section2.5 InitialAllocationsofInterestandCapitalAccounts 20Section2.6 AdditionalCapitalCallsandParentLoans 21Section2.7 P&GOption 23Section2.8 RightswithRespecttoCapital 24Section2.9 CapitalAccounts 24

ARTICLEIII ALLOCATIONSANDDISTRIBUTIONS 26Section3.1 AllocationofNetProfitsandLosses 26Section3.2 SpecialAllocations 27Section3.3 Section704(c)Allocation 29Section3.4 DistributionsofAvailableCashFlow 29Section3.5 DistributionsofIPRelatedAmounts 32

ARTICLEIV REPRESENTATIONSANDWARRANTIES 33Section4.1 RepresentationsandWarrantiesofalltheParties 33Section4.2 RepresentationsandWarrantiesoftheCloroxParties 34Section4.3 RepresentationsandWarrantiesofP&G 39Section4.4 SurvivalofRepresentationsandWarranties 40

ARTICLEV GOVERNANCE 40Section5.1 BoardofManagers 40Section5.2 MeetingsoftheBoard 42Section5.3 P&GVetoRights 44Section5.4 BusinessPlan,BudgetandReportstotheBoard 45

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THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

TABLEOFCONTENTS(continued)

PageSection5.5 AdditionalItemsforBoardApproval 46

ARTICLEVI TRANSFERSOFINTEREST;TERMANDTERMINATION 47Section6.1 General;RestrictionsonTransfers 47Section6.2 EffectofTransfersonDistributionsamongJVPartners 47Section6.3 TermofJointVenture 48Section6.4 P&GPutRights 48Section6.5 CloroxPurchaseofP&GJVInterest 50Section6.6 Tag-AlongRights 52Section6.7 DragAlongRights 52Section6.8 ServicesTerminationAmount 53

ARTICLEVII CERTAINAGREEMENTS 54Section7.1 Personnel;ProvisionofServices 54Section7.2 Non-Competition 55Section7.3 Confidentiality;Non-Disclosure 56Section7.4 Non-Solicitation 58Section7.5 AgreementtoCooperate;FurtherAssurances;OtherMatters 59Section7.6 PublicStatements 60Section7.7 ConductofBusiness 60Section7.8 InternationalRelationships 62Section7.9 SublicensesofP&GIntellectualProperty 62

ARTICLEVIII CONDITIONSPRECEDENTTOCLOSING 63Section8.1 ConditionstoEachParty’sObligations 63Section8.2 ConditionstotheClosingObligationsoftheCloroxParties 63Section8.3 ConditionstotheClosingObligationsoftheP&GParties 64

ARTICLEIX ACCOUNTING;TAXMATTERS 65Section9.1 Accounting 65Section9.2 TaxMatters 66

ARTICLEX INDEMNIFICATION 67Section10.1 IndemnificationbyCloroxPartners 67Section10.2 IndemnificationbyP&GPartners 67

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THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

TABLEOFCONTENTS(continued)

PageSection10.3 Third-PartyClaims 68Section10.4 LimitationonLossesandExpenses 69

ARTICLEXI MISCELLANEOUS 69Section11.1 AmendmentsandWaivers 69Section11.2 Successors,AssignsandTransferees 69Section11.3 Notices 69Section11.4 Integration 70Section11.5 Severability 70Section11.6 Counterparts 71Section11.7 GoverningLaw 71Section11.8 Arbitration 71Section11.9 InjunctiveRelief 72Section11.10 Expenses 72Section11.11 NoThirdPartyBeneficiaries 72Section11.12 GuaranteesbyCloroxandP&G 73Section11.13 EffectivenessofAmendmentandRestatement,Representations,

WarrantiesandAgreements 74

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THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

TABLEOFCONTENTS

PageEXHIBITSExhibitA P&GLicenseAgreement[SUPERSEDED]

ExhibitB P&GServicesAgreement[SUPERSEDED]

ExhibitC DescriptionofP&GEquipment

ExhibitD PreliminaryBusinessPlan

ExhibitE PreliminaryBudget

ExhibitF CloroxServices

ExhibitG TermsofInternationalRelationships

ExhibitH JVAccountingPrinciples

ExhibitI FormofJVSublicenseAgreement

ExhibitJ FormofAmendedGladLicenseAgreement

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THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

AMENDEDANDRESTATEDJOINTVENTUREAGREEMENT

ThisAmendedandRestatedJointVentureAgreement(this“Agreement”)ismadeasofthe31stdayofJanuary,2003byandbetweenTheGladProductsCompany,aDelawarecorporation,GladManufacturingCompany,aDelawarecorporation,CloroxServicesCompany,aDelawarecorporation,TheCloroxSalesCompany,aDelawarecorporation,CloroxInternationalCompany,aDelawarecorporation(collectivelythe“CloroxParties”),andTheCloroxCompany,aDelawarecorporation(“Clorox”),andTheProcter&GambleCompany,anOhiocorporation(“P&G”)andProcter&GambleRHDInc.,anOhiocorporation(“P&GSub”andcollectivelywithP&G,the“P&GParties”)(each,a“Party”andcollectively,the“Parties”).

BACKGROUND

WHEREAS,theCloroxPartiescurrentlyoperatetheGladBusiness(asdefinedbelow);

WHEREAS,theP&GPartieshavecertainintellectualpropertyandproprietarytechnologiesthattheP&GPartiesandtheCloroxPartieswishtouseintheGladBusiness;

WHEREAS,theCloroxPartiesandtheP&GPartiesdesirethatP&GSubacquireanundividedparticipationinterestintheGladBusinessandparticipateinthemanagementofsuchbusiness,asprovidedforherein;

WHEREAS,theCloroxPartiesandtheP&GPartieshavepreviouslyenteredintoaJointVentureAgreement,datedasofNovember15,2002(the“OriginalDate”)withrespecttotheGladBusiness(the“OriginalAgreement”);

WHEREAS,theCloroxPartiesandtheP&GPartieswishtoamendandrestateinitsentiretytheOriginalAgreementinaccordancewiththefurtherprovisionsofthisAgreement;

WHEREAS,thePartiesintendfortheircontractualrelationshipestablishedbythisAgreementwithrespecttotheGladBusinesstobetreatedasapartnershipforU.S.federal,stateandlocalincometaxpurposes;and

WHEREAS,theCloroxPartiesandtheP&GPartieswishtosetforth,andbeboundbytheirmutualagreementastocertainsignificanttermsandconditionsregardingtheforegoingandrelatedmatters;

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

NOW,THEREFORE,inconsiderationofthemutualcovenantsandagreementssetforthinthisAgreement,andforothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichareherebyacknowledged,thePartiesagreeasfollows:

ARTICLEI

DEFINITIONS

ForpurposesofthisAgreement,thefollowingtermshavethemeaningsspecifiedorreferredtointhisSection1:

Section1.1DefinedTerms.

AsusedinthisAgreement:

“AdjustmentAmount”meansanamountequalto(a)tenpercent(10%)oftheaggregateCapitalContributionsmadeordeemedmadebyallJVPartnersaftertheClosingDateandonorpriortotheclosingoftheexerciseoftheP&GOption,minus(b)tenpercent(10%)oftheaggregatedistributionstotheJVPartnerswithrespecttodistributionsofAvailableCashFlow(otherthandistributionsmadeunderSection3.4(c)(ii)hereof)consistingofthenetcashproceedsofanysale,transferorotherdispositionofanybusinessorassetsoftheGladBusinessoutsidetheordinarycourseofbusinessoftheGladBusinessaftertheClosingDateandonorpriortotheclosingoftheP&GOption,minus(c)theaggregatedistributionsunderSection3.4(c)(ii)andSection3.5(b)(ii)madepriortotheclosingoftheP&GOption(whichfortheavoidanceofdoubtwillnotincludeanyamountsincludedinthefollowingclause(d)),minus(d)thecumulativeamountofDistributionShortfallsowedorpreviouslypaidtotheholderoftheClassAJVInterestunderSection3.4(c)(v)hereof.

“Affiliate”meanswithrespecttoaspecifiedPerson,anyPersonthatdirectlyorindirectly,throughoneormoreintermediaries,controls,iscontrolledby,orisundercommoncontrolwith,thespecifiedPerson.Asusedinthisdefinition,theterm“control”meansthepossession,directlyorindirectly,orastrusteeorexecutor,ofthepowertodirectorcausethedirectionofthemanagementandpoliciesofaPerson,whetherthroughownershipofvotingsecurities,astrusteeorexecutor,bycontractorcreditarrangementorotherwise.Forpurposesofclarification,thePartiesagreethatHenkelKGaA,anentityorganizedunderthelawsofGermany,willnotbedeemedtobeanAffiliateofanyCloroxParty.

“AffiliateLoans”withrespecttoanyInternationalLicenseeshallhavethemeaningsetforthintheJVSublicenseAgreementtowhichsuchInternationalLicenseeisaparty.

“AvailableCashFlow”means,withrespecttoanyFiscalQuarterorotherperiod,thesumofallcashreceiptsduringsuchFiscalQuarterorotherperiodattributedtotheJointVenturefromanyandallsourcesotherthanthecashproceedsofanyIndebtedness,plusallReservesasofthecloseofbusinessonthelastdayoftheprecedingFiscalQuarterorotherperiod,plusinterestonsuchReservesatClorox’s30-daycommercialpaperborrowingrate(or,ifCloroxisunabletoobtaincommercialpaper,Clorox’sshorttermcostofborrowing)minusallcashdisbursementsattributedtotheJointVentureforanyandallpurposesduringsuchFiscalQuarterorotherperiod(includingloanrepayments(otherthanParentLoans),interestpayments(otherthaninrespectofParentLoans),capitalimprovementsandreplacementsbutexcluding(x)disbursementsfundedbythecashproceedsofanyIndebtedness(otherthanParentLoans)),(y)guaranteedpaymentsmadeunderSection3.5(a)and3.5(b)forsuchFiscalQuarter,and(z)areasonableallowanceasofthelastdayofsuchFiscalQuarterorotherperiodforReserves,contingenciesandanticipatedobligationsasdeterminedbytheBoard,determinedinaccordancewiththeJVAccountingPrinciples,minusdistributionsmadepursuanttoSection3.5hereofforsuchFiscalQuarter(otherthantheguaranteedpaymentsdescribedinSections3.5(a)and3.5(b)hereof).

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“BusinessDay”meansadayotherthanaSaturday,Sunday,federalorNewYorkholidayorotherdayonwhichcommercialbanksinNewYork,NewYorkareauthorizedorrequiredbylawtoclose.

“CapitalCall”meansacallbytheBoardpursuanttoSection2.6hereoftotheJVPartnersforadditionalcontributionsofcapitaltobeattributedtotheJointVenture.

“CapitalContribution”meansthetotalamountofcashandthe[***]fairmarketvalue[***]ofalloftheassetstobeattributedtotheJointVentureascontributedbyaJVPartner,includingtheCloroxContributionandtheP&GContribution.

“CarryingValue”means,withrespecttoanyProperty,theProperty’s[***]exceptthattheCarryingValueofallPropertiesmaybeadjustedtoequaltheir[***]inaccordancewiththe[***]immediatelypriorto:(i)thedateoftheacquisitionofanyadditionalinterestintheJointVenturebyanyneworexistingJVPartnerinexchangeformorethanademinimiscapitalcontribution;or(ii)thedateofthedistributionofmorethanademinimisamountofProperty(otherthanaproratadistribution)toaJVPartner.TheCarryingValueofanyPropertydistributedtoanyJVPartnerwillbeadjustedimmediatelypriortosuchdistributiontoequalitsfairmarketvalue.TheCarryingValueofanyPropertycontributedbyanyJVPartnerwillbeadjustedimmediatelypriortosuchcontributiontoequalitsfairmarketvalue.InthecaseofanyassetthathasaCarryingValuethatdiffersfromits[***]CarryingValuewillbeadjustedbytheamountofdepreciationcalculatedforpurposesofthedefinitionof“NetProfitsandNetLoss”ratherthantheamountofdepreciationcalculatedfor[***].Forpurposesofclarification,CloroxandP&Ghaveagreedontheinitialcontributionsandthe[***]asreflectedintheinitialCapitalAccounts.

“ChangeofControl”ofanyPerson(the“RelevantPerson”)meanstheoccurrenceofeither(i)theacquisitionbyanyPersonorgroupofPersonsactinginconcert(otherthanaJVPartneroritsAffiliates)ofdirectorindirect(throughtheownershipofamajorityofthevotingpowerofaparentcorporationofotherwise)beneficialownership(asdefinedunderSection13(d)oftheSecuritiesandExchangeActof1934,asamended)ofsecuritiesoftheRelevantPersonsuchthatfollowingsuchacquisitionsuchPersonorgroupofPersonsactinginconcertbeneficiallyownamajorityofthevotingpowerofalloutstandingvotingsecuritiesofsuchRelevantPersonor(ii)anymerger,consolidationorshareexchangeoftheRelevantPersonwithorintoanyotherPerson,unlesstheequityholdersoftheRelevantPersonimmediatelypriortoanysuchtransactionareholdersofamajorityofthevotingpowerofthesurvivingentityoritsparentcompanyimmediatelythereafter.

“ClassAInterest”meanstheundividedClassAparticipationinterestintheJointVenture,whichshallentitletheJVPartnerholdingsuchClassAinteresttoreceiveallocationsanddistributionsfromtimetotimeasprovidedinthisAgreement.

“ClassARoyaltyAmount”means,withrespecttoanyFiscalQuarter,royaltypaymentsattributabletotheJointVenturereceivedundertheGladLicenseAgreementsinanamountequalto[***]percent([***]%)oftheaggregateDistributableLocalCashFlowfortheInternationalLicenseesforsuchFiscalQuarter,lessDeemedWithholdingTaxesonsuchroyaltypayments.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“ClassBInterest”meanstheundividedClassBparticipationinterestintheJointVenture,whichshallentitletheJVPartnerholdingsuchClassBinteresttoreceiveallocationsanddistributionsfromtimetotimeasprovidedinthisAgreement.

“ClassCInterest”meanstheundividedClassCparticipationinterestintheJointVenture,whichshallentitletheJVPartnerholdingsuchClassCinteresttoreceiveallocationsanddistributionsfromtimetotimeasprovidedinthisAgreement.

“CloroxDisclosureSchedule”meansascheduledatedasoftheOriginalDatedeliveredbyCloroxtoP&G,whichidentifiesexceptionsandothermatterswithrespecttotherepresentationsandwarrantiesoftheCloroxPartiescontainedinSections4.1and4.2.

“CloroxPartners”meanstheCloroxPartiesandanyPermittedTransfereesofanyCloroxPartiesthathavebeenTransferredalloranypartoftheJVInterestheldbysuchCloroxParties.

“Code”meanstheInternalRevenueCodeof1986,asamended(oranycorrespondingprovisionorprovisionsofanysucceedinglaw).

“ContributionAllocationStatement”meanstheallocationoftheCloroxContributionamongtheCloroxPartiestobepreparedbyCloroxingoodfaith.

“DeemedWithholdingTaxes”meansanamountofwithholdingtaxesdeemedtohavebeenimposedunderthedefinitionof“ClassARoyaltyAmount.”TheamountofwithholdingtaxesdeemedtohavebeenimposedwillbedeterminedbasedontheaggregateamountofwithholdingtaxesthatwouldhavebeenimposedonpaymentsmadeundertheGladLicenseAgreementshadroyaltypaymentsinanaggregateamountequaltotheClassARoyaltyAmountbeenpaidinsuchFiscalQuarterbytheInternationalLicenseesproratainaccordancewiththetotalroyaltypaymentsactuallymadebytheInternationalLicenseesundertheGladLicenseAgreementsforsuchFiscalQuarter.

“DistributableCashFlow”means,withrespecttoanyFiscalQuarterorotherperiod,AvailableCashFlowforsuchFiscalQuarterorotherPeriodminusanypaymentsrequiredtobemadepursuanttoSection3.4(d)hereof.

“DistributableLocalCashFlow”foranyInternationalLicenseehasthemeaningsetforthintheJVSublicenseAgreementtowhichsuchInternationalLicenseeisaparty.

“EnvironmentalLaws”meansanyandalllaws,rules,orders,regulations,statutes,ordinances,guidelines,codes,decrees,orotherlegallyenforceablerequirement(includingcommonlaw)ofanyforeigngovernment,theUnitedStates,oranystate,local,municipalorotherGovernmentalAuthority,regulating,relatingtoorimposingliabilityorstandardsofconductconcerningprotectionoftheenvironmentorofhumanhealth,oremployeehealthandsafety.

“ExclusiveField”meansthe[***]ofbags,wraps,strawsandcoveredcontainersprimarily[***].

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“FairMarketValue”means,excepttotheextentotherwiseexpresslyprovidedherein:

(i)withrespecttoaParty’sOrdinaryJVInterest,“FairMarketValue”willbecalculatedastheproductof(x)theOrdinaryJVInterestheldbysuchPartyand(y)“FairMarketValue”foralloutstandingOrdinaryJVInterestsasifallOrdinaryJVInterestsweretobesoldtoasinglebuyerwhowouldacquiresolecontroloverthebusinessandaffairsoftheGladBusiness.“FairMarketValue”foralloutstandingOrdinaryJVInterestswillbedeterminedbyagreementofthePartiesor,ifthePartiesareunabletosoagreewithin[***]throughgoodfaithnegotiation,thenthePartieswillagreeupon[***]todeterminesuchvaluation,providedthatifthePartiesareunabletosoagree[***].Notwithstandingtheforegoing,totheextent“FairMarketValue”isbeingdeterminedforpurposesofSection6.6or6.7hereof,“FairMarketValue”forpurposesoftheforegoingclause(y)willbedeterminedbyreferencetothe[***]asapplicable.Forexample,[***].If,ineitheroftheexamplesprovidedinthetwoimmediatelyprecedingsentences,therewere$[***]outstanding,theFairMarketValueofalloutstandingOrdinaryJVInterestswouldhaveequaled$[***]ratherthan$[***](i.e.thevalueofalloftheOrdinaryJVInterestswouldequalthevalueofthe[***]).The[***]inanysuchtransactionwillincludethe[***]arenotattributabletotheJointVenture.TheintentoftheimmediatelyprecedingfoursentencesistomakeitclearthatFairMarketValueunderthosecircumstanceswillbederivedsolelyfromthe[***].

(ii)withrespecttoaGladLocalBusiness,“FairMarketValue”willbeequalto[***].“FairMarketValue”oftheGladLocalBusinesswillbedeterminedbyagreementofthePartiesor,ifthePartiesareunabletosoagreewithin[***]throughgoodfaithnegotiation,thenthe[***]willdeterminesuchvaluation.Notwithstandingtheforegoing,totheextent“FairMarketValue”isbeingdetermined[***]“FairMarketValue”willbedeterminedbyreferencetothe[***].Forexample,if[***].If,intheexampleprovidedintheimmediatelyprecedingsentence,therewere$[***]ofAffiliateLoansoutstanding,theFairMarketValueofalloutstandingOrdinaryJVInterestswouldhaveequaled$[***]ratherthan$[***](i.e.thevaluewouldequalthevalueof[***]).The[***]inanysuchtransactionwillincludethe[***].TheintentoftheimmediatelyprecedingthreesentencesistomakeitclearthatFairMarketValueunderthosecircumstanceswillbederivedsolelyfrom[***].Intheeventofanytransactioninvolvingthe[***],totheextenttheP&GPartnersbelieveingoodfaiththatthe[***]insuchtransaction[***]represents,thePartieswillnegotiateingoodfaithtoagreeupontheappropriateallocationand,ifthePartiesareunabletosoagreewithin[***]throughgoodfaithnegotiation,thenthe[***]willdeterminesuchallocation;

(iii)withrespecttoeachoftheClassAInterestandtheClassCInterest,individually,“FairMarketValue”willbedeemedtobeanamountequalto[***]oftheaggregateFairMarketValueofthe[***];

(iv)withrespecttotheP&GOption,(A)duringtheOptionExercisePeriod,iftheP&GOptionisnotyetexercised,thegreaterof[***]withrespecttotheOrdinaryJVInterestand[***]thethen-applicableOptionPrice;and(B)aftertheOptionExercisePeriod,[***];and

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(v)intheevent“FairMarketValue”isbeingdeterminedinconnectionwithaCloroxChangeofControl,the[***]willdeterminetheFairMarketValuesoftheOrdinaryJVInterestsheldbytheCloroxPartners(takingintoaccounttheexistenceoftheP&GOptionifsuchoptionhasnotbeenpreviouslyexercisedorterminated)andtheGladLocalBusinesses[***].Oncethe[***]hasdeterminedtheFairMarketValuesoftheOrdinaryJVInterestsheldbytheCloroxPartnersandtheGladLocalBusinesses,itwillthendeterminethe“FairMarketValues”of[***].Forexample,assumingtheP&GOptionhasbeenexercised,ifathirdpartybuyeracquires[***].If,intheexampleprovidedintheimmediatelyprecedingsentence,therewere[***]theOrdinaryJVInterestswouldhaveequaled[***](i.e.thevalueofalloftheOrdinaryJVInterestswouldequal[***]theGladLocalBusinesseswouldhaveequaled$[***].The[***].ThisdeterminationinconnectionwithaCloroxChangeofControlwillbemadebythe[***]basedonthe[***],andforavoidanceofdoubtitisexpectedindeterminingsuchrelativevaluesthat[***]asthecasemaybe).The[***]willbedirectedtodetermineFairMarketValuebasedon[***].

Withrespecttoanydeterminationof“FairMarketValue”hereunder,the[***]bytheCloroxPartners(collectively),andeachoftheCloroxPartners(collectively)andtheP&GPartners(collectively)willhavetherighttomakeapresentationwithrespecttothecalculationofFairMarketValuetothe[***]makingthedetermination.

“Field”means,collectively,theExclusiveFieldandtheNon-ExclusiveField.

“FiscalQuarter”meanseachthree(3)calendarmonthperiodendingonMarch31,June30,September30andDecember31,orinthecaseofthefirstFiscalQuarteroftheJointVenture,theperiodfromtheClosingDatethroughMarch31,2003.

“FiscalYear”means(i)each12-monthperiodendingonJune30,orinthecaseofthefirstFiscalYearoftheJointVenture,theperiodfromtheClosingDatethroughJune30,2003,or(ii)ifafterthedateofthisAgreementthetaxableyearisrequiredbytheCodetobeaperiodotherthantheperioddescribedinclause(i),theneach12-monthperiodthatisthetaxableyearoftheJointVenturedeterminedinaccordancewiththerequirementsoftheCode;(iii)theperiodfromthedayaftertheendofthemostrecentlyendedFiscalYearuntilthedatetheTermends,and(iv)forpurposesofmakingallocationsofNetProfitsandNetLoss,FiscalYearmeansanyportionofataxableyearoftheJointVenturetotheextentrequiredtocomplywithSection706oftheCode.

“GAAP”meansgenerallyacceptedaccountingprinciplesasineffectintheUnitedStates(orsuchotherjurisdictionasmaybespecifiedherein)consistentlyapplied.

“GeneralTechnology”meansanytechnologyofgeneralutilitynotspecific[***],includingbutnotlimitedtotechnologythatcanbeused[***]and/or[***]or[***]or[***].AnytechnologythatisnotGeneralTechnologyisSpecificTechnology.

“GladBalanceSheet”meansthebalancesheetoftheGladBusinessasofJune30,2002,attachedtoSection1.1totheCloroxDisclosureSchedule.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“GladBusiness”meansthebusinessconductedbyCloroxanditsSubsidiarieswithintheFieldandanyotherbusinessthattheBoarddeterminestoenterintowithoutviolatingSection5.3(a),includinganyexpansionofsuchbusinessintoaNewCountrythatisstructuredinthemannersetforthinSection7.8(b)hereof,providedthatsuchbusinesswillnotinclude(i)anybusiness,operations,properties,assetsorLiabilitiesoftheGladLicensedBusinessor(ii)anyequityinterestinanySubsidiaryofCloroxconductingtheGladLicensedBusiness.

“GladExistingInternationalBusiness”meansthebusinessintheFieldconductedbyCloroxanditsSubsidiariesinCanada,Australia,NewZealand,thePeople’sRepublicofChina,thePhilippines,HongKong,CostaRica,SouthKoreaandSouthAfrica.

“GladFinancialStatements”meanstheGladBalanceSheetandtherelatedstatementsofearningsandcashflowsoftheGladBusinesspreviouslydeliveredtoP&G.

“GladGlobalBusiness”meanstheGladBusinessandtheGladLicensedBusinessasconductedduringtheTerm.

“GladLicenseAgreements”meansthelicenseagreementsbetweenTheGladProductsCompanyandeachoftheInternationalLicensees,enteredintoasoftheClosingDatesubstantiallyintheformsetforthonExhibitJhereto,whichlicenseagreementsprovideforaroyaltypaymentcalculatedbasedonthenetsalesofsuchInternationalLicensee,andsuchothercomparableneworamendedlicenseagreementsthatmaybeenteredintoduringtheTermwithrespecttointellectualpropertyofCloroxAffiliatesfortheGladBusiness,whichlicenseagreementsarebetweenTheGladProductsCompany(oranotherAffiliateonbehalfofClorox)andanInternationalLicenseewithrespecttoNewCountriesinconnectionwithanexpansionstructuredinthemannersetforthinSection7.8(a).

“GladLicenseTerminationAmount”means,underanyGladLicenseAgreement,anamountequalto[***]percent([***]%)oftheFairMarketValueoftheGladLocalBusinessfortheTerritory(asdefinedinsuchGladLicenseAgreement).

“GladLicensedBusiness”means(x)theGladExistingInternationalBusinessand(y)anyexpansionofthebusinessconductedbyCloroxanditsSubsidiariesintheFieldintoaNewCountrythatisstructuredinthemannersetforthinSection7.8(a)hereof.

“GladLocalBusiness”,withrespecttoanyInternationalLicensee,shallhavethemeaningsetforthintheJVSublicenseAgreementtowhichsuchInternationalLicenseeisaparty.

“GladParties”means,collectively,theCloroxPartiesandtheInternationalLicenseesand“GladParty”meansanyonesuchPerson.

“GovernmentalAuthority”meansanynationorgovernment,anystateorotherpoliticalsubdivisionthereof,andanyentityexercisingexecutive,legislative,judicial,regulatoryoradministrativefunctionsoforpertainingtogovernment.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“Improvements”meansanyandallIntellectualPropertyrightsinandtoanyupdate,modification,customization,translation,upgrade,improvement,enhancementand/orderivativework.

“Indebtedness”meansallobligationsforborrowedmoney,includingguarantees,andallreimbursementobligationsinrespectofoutstandinglettersofcredit(measuredassumingsuchlettersofcreditaredrawninfull).

[***]shallhavethemeaningsetforthinthedefinitionof[***].

“IndustrialPackaging”means[***]usedaspackagingforproducts,whichpackagingis(i)[***],(ii)soldto[***]fortheiruseasthepackagingfortheirproducts,and(iii)[***].Fortheavoidanceofdoubt,IndustrialPackagingshallexcludeany[***]andusedaspackaging[***],andwhichpackagingis(A)[***]and(B)soldto[***]fortheiruseasthepackagingfortheirproducts.

“Infringe”meanstoinfringe,misappropriate,dilute,impairorotherwiseviolate.

“InstitutionalChannel”meanssalesofproductstocommercial,educationaland/orgovernmentalinstitutionsandorganizationsincluding,withoutlimitation,hospitals,restaurants,janitorialserviceproviders,universities,schools,hotelsandcaterers(collectively,“Institutions”),aswellassalesofproductsto[***].

“IntellectualProperty”meansanyandallintellectualproperty,including,withoutlimitation,patents,copyrights,trademarks,servicemarks,tradenames,software,tradesecrets,technology,inventions,specifications,know-how,processes,formulae,productdescriptionsandspecificationsandothertechnicalorproprietaryinformation,andallregistrationsandapplicationstherefor.

“InternationalAcquisition”means,withrespecttoanyInternationalLicensee,thesale,dispositionorothertransfertoaThirdPartyofallorsubstantiallyalloftheequityinterestsofsuchInternationalLicenseeorofallorsubstantiallyallthebusiness,assetsandpropertiesofsuchInternationalLicenseeusedintheGladLocalBusinessofsuchInternationalLicensee,butexcludinganytransactioninwhichtheJVInterestsoftheP&GPartnersarepurchasedpursuanttotheprovisionsofSections6.4,6.5,6.6or6.7.

“InternationalLicensee”meanseachofCloroxAustraliaPty.Ltd.,TheCloroxCompanyofCanadaLtd.,CloroxdeCentroAmerica,S.A.,CloroxChina(Guangzhou)Ltd.,CloroxHongKongLimited,CloroxNewZealandLimited,CloroxInternationalPhilippines,Inc.,CloroxAfrica(Pty)Ltd.andCloroxKoreaLimitedandanyotherPersonthatbecomesapartytoaJVSublicenseAgreementasalicenseethereunder.

“IPAcquisition”means,inconnectionwithanInternationalAcquisition,agrantofa[***]theRelatedLocalIntellectualProperty(orotherdispositionofallsubstantialrightstoallsuchRelatedLocalIntellectualProperty)oftheapplicableInternationalLicensee,whichlicenseisgrantedtoaThirdPartylicenseeonbehalfoftheJointVentureinexchangefora[***]totheJointVenturefromthenewlicenseeofsuchRelatedLocalIntellectualProperty.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“IPAllocationAmount”means,inthecaseofanyInternationalAcquisitioninwhichthereisanIPAcquisition,anamountequalto[***]percent([***]%)oftheFairMarketValueoftherelevantGladLocalBusiness.

“IPAcquisitionPrice”means,inthecaseofanyInternationalAcquisitioninwhichthereisarelatedIPAcquisition,theamountpaidtoacquirethelicenseoforrightstotheRelatedLocalIntellectualPropertybythenewlicenseeofsuchRelatedLocalIntellectualProperty.

“JointVenture”meansthecontractualrelationshipbetweentheJVPartnerscreatedbythisAgreement,whichwillbetreatedasapartnershipforU.S.federal,stateandlocalincometaxpurposes,andwillincludeallinterestsattributedtosuchJointVentureinaccordancewiththetermsofthisAgreementwithrespecttoanybusiness,asset,right,propertyorLiability,includingwithoutlimitationtheCloroxContributionandtheP&GContribution.

“JVInterest”meansanOrdinaryJVInterest,ClassAInterest,ClassBInterestorClassCInterest.

“JVSublicenseAgreements”means(i)thesublicenseagreementstobedatedandexecutedasoftheClosingDateintheformattachedheretoasExhibitIbetweenTheGladProductsCompanyandeachInternationalLicensee,providingforthesublicensetotheInternationalLicenseeofcertainIntellectualPropertyrightslicensedundertheP&GLicenseAgreement,pursuanttothetermsthereof,and(ii)suchotherlicenseagreementswhichmaybeenteredintoonbehalfoftheJointVentureduringtheTermwithrespecttoNewCountriespursuanttoSection7.8(a).

“JVSublicenseTerminationAmount”means,underanyJVSublicenseAgreement,anamountequalto[***]percent([***]%)oftheFairMarketValueoftheGladLocalBusinesstowhichsuchJVSublicenseAgreementrelates.

“JVPartners”meansanyPersonthatholdsaJVInterestinaccordancewiththetermsofthisAgreement.AsoftheClosingDate,theJVPartnerswillconsistofeachoftheCloroxPartiesandP&GSub.

“KnowHow”meansanyandallproprietaryinformation,knowledgeorexpertiseknowntoP&G[***];andmayinclude,withoutlimitation,anyknowhow,copyrights,software,tradesecrets,technology,inventions,specifications,processes,formulae,productdescriptionsandspecificationsandothertechnicalorproprietaryinformation,ifany,ownedorheldbyP&G[***](asdefinedintheP&GLicenseAgreement).

“Liabilities”means,astoanyPerson,alldebts,liabilitiesandobligations,direct,indirect,absoluteorcontingentofsuchPerson,whetheraccrued,vestedorotherwise,whetherknownorunknownandwhetherornotactuallyreflected,orrequiredbyGAAPtobereflected,insuchPerson’sbalancesheet.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“Knowledge”or“knowledge”ofaPartymeanstotheactualknowledgeafterreasonableinquiry(i)ofthoseemployeesofsuchPartyanditsAffiliateswhopriortotheexecutionoftheOriginalAgreementparticipatedinthepreparationornegotiationoftheOriginalAgreementoranyoftheRelatedAgreementsortheduediligenceinvestigationsrelatingtothePWCReportorthetransactionscontemplatedbytheOriginalAgreementandtheRelatedAgreementsor(ii)ofthoseemployeesofsuchPartyanditsAffiliateswhohavebeenconsultedpriortotheexecutionoftheOriginalAgreementbytheemployeesspecifiedinclause(i)withrespecttotheOriginalAgreementoranyoftheRelatedAgreementsoranyofthetransactionscontemplatedherebyorthereby.

“Liens”meansanyadverseclaims,liens,securityinterests,charges,leases,licensesorsublicensesandotherencumbrancesofanykindandnature.

“MaterialAdverseEffect”means(i)withrespecttotheCloroxParties,amaterialadverseeffectuponthebusiness,properties,financialconditionorresultsofoperationsoftheGladBusinessandtheGladExistingInternationalBusiness,takenasawhole(providedthatforavoidanceofdoubtthePartiesacknowledgethatitisnotapreconditionthatanadverseeffectimpactmorethanonecountryormarketbeforeitispossibleforthisstandardtobesatisfied)orontheabilityoftheCloroxPartiestoperformtheirobligationsunderthisAgreementoranyoftheRelatedAgreementsand(ii)withrespecttotheP&GParties,amaterialadverseeffectontheabilityoftheP&GPartiestoperformtheirobligationsunderthisAgreementoranyoftheRelatedAgreements.

“MaterialsofEnvironmentalConcern”meansanygasolineorpetroleum(includingcrudeoiloranyfractionthereof)orpetroleumproducts,polychlorinatedbiphenyls,urea-formaldehydeinsulation,asbestos,pollutants,contaminants,radioactivity,andanyothersubstancesofanykind,whetherornotanysuchsubstanceisdefinedashazardousortoxicunderanyEnvironmentalLaw,thatisregulatedpursuanttoorcouldgiverisetoliabilityunderanyEnvironmentalLaw.

“NetIncome(Loss)”means,foranyperiod,thenetincome(loss)attributedtotheJointVentureinaccordancewiththeJVAccountingPrinciples,excluding(a)anygainsorlossresultingfromthesaleorotherdispositionofanyproperty,plantorequipmentattributedtotheJointVenturewhichisnotsoldorotherwisedisposedofintheordinarycourseofbusiness;(b)anygainsorlossresultingfromthesaleorotherdispositionofanyequityinterestinanyPerson;(c)anyextraordinarygainorloss;(d)anyone-timechargesorexpensesassociatedwiththeacquisitionofanybusinessorPerson;and(e)anycumulativeeffectofachangeinaccountingprinciples.

“NetProfits”and“NetLoss”mean,foreachFiscalYearorotherperiod,anamountequaltothetaxableincomeorlossattributedtotheJointVentureforsuchyearorperiod,determinedinaccordancewithCodeSection703(a)(forthispurpose,allitemsofincome,gain,lossordeductionrequiredtobestatedseparatelypursuanttoCodeSection703(a)(1)willbeincludedintaxableincomeorloss)andwiththeaccountingmethodusedbytheJointVentureforfederalincometaxpurposes,withthefollowingadjustments:

(i)anyincomeattributedtotheJointVenturethatisexemptfromU.S.federalincometaxandnototherwisetakenintoaccountincomputingNetProfitsorNetLosswillbeaddedtosuchtaxableincomeorloss;

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(ii)anyexpendituresattributedtotheJointVenturedescribedinCodeSection705(a)(2)(B)ortreatedasCodeSection705(a)(2)(B)expenditurespursuanttoTreasuryRegulationSection1.704-1(b)(2)(iv)(i)andnototherwisetakenintoaccountincomputingNetProfitsorNetLosswillbesubtractedfromsuchtaxableincomeorloss;

(iii)iftheCarryingValueofanyPropertydiffersfromitsadjustedtaxbasisforfederalincometaxpurposes,anygainorlossresultingfromadispositionofsuchassetwillbecalculatedwithreferencetosuchCarryingValue;

(iv)uponanadjustmenttotheCarryingValueofanyProperty(otherthananadjustmentinrespectofdepreciation)pursuanttothedefinitionofCarryingValue,theamountoftheadjustmentwillbeincludedasgainorlossincomputingsuchtaxableincomeorloss;

(v)iftheCarryingValueofanyPropertydiffersfromitsadjustedtaxbasisforfederalincometaxpurposestheamountofdepreciation,amortizationorcostrecoverydeductionswithrespecttosuchPropertywillforpurposesofdeterminingNetProfitsandNetLossbeanamountwhichbearsthesameratiotosuchCarryingValueasthefederalincometaxdepreciation,amortizationorothercostrecoverydeductionsbearstosuchadjustedtaxbasis;

(vi)notwithstandinganyotherprovisionofthisdefinition,anyitemsofincome,gain,lossordeductionthatarespeciallyallocatedpursuanttoSection3.2willnotbetakenintoaccountincomputingNetProfitsorNetLoss.

“Non-ExclusiveField”means(i)[***]outsideoftheExclusiveFieldof[***]productsoftheGladGlobalBusinessintheExclusiveFieldasoftheClosingDate,including[***]oftheGladGlobalBusinessand/orthe[***]and(ii)[***]brandedwithaGladGlobalBusinesstrademarksoldto[***]GladGlobalBusinessproducts[***].

“OrdinaryJVInterest”means,withrespecttoanyJVPartner,itsundividedparticipationinterestintheJointVenture(otherthananyparticipationinterestrepresentedbytheClassAInterest,ClassBInterestorClassCInterest,asapplicable).TheOrdinaryJVInterestofeachJVPartnerwillbeexpressedasapercentageoftheaggregateOrdinaryJVInterestsofallJVPartners.TheOrdinaryJVInterestsoftheJVPartnersmaybeadjustedfromtimetotimeasprovidedinthisAgreement.TheinitialOrdinaryJVInterestofeachJVPartnerasoftheClosingwillbeassetforthinSection2.5hereof.

“P&GDisclosureSchedule”meansascheduledatedasoftheOriginalDatedeliveredbyP&GtoClorox,whichidentifiesexceptionsandothermatterswithrespecttotherepresentationsandwarrantiesoftheP&GPartiescontainedinSections4.1and4.3.

“P&GEquipment”meanstheequipmentdescribedonExhibitChereto.

“P&GEquipmentTransferDocuments”meanssuchinstrumentsoftransfer,withappropriateinstrumentsoftitle,informandsubstancereasonablysatisfactorytoClorox,toeffectivelytransfertheP&GEquipmentasprovidedinSection2.3hereof.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“P&GLicenseAgreement”meanstheIntellectualPropertyLicenseAgreementtobedatedandexecutedasoftheClosingDateintheformattachedheretoasExhibitA,providingforthelicenseofcertainIntellectualPropertybyP&GSub.

“P&GPartners”meansP&GSubandanyPermittedTransfereeofP&GSubthathasbeenTransferredalloranypartoftheJVInterestheldbyP&G.

“P&GServicesAgreement”meanstheProductDevelopmentandServicesAgreementtobedatedandexecutedasoftheClosingDateintheformattachedheretoasExhibitB,providingforcertainservicestobeprovidedbyP&G.

“PermittedLiens”means(i)LiensforTaxesthat(x)arenotyetdueordelinquentor(y)arebeingcontestedingoodfaithbyappropriateproceedings;(ii)statutoryLiensorlandlords’,carriers’,warehousemen’s,mechanics’,suppliers’,materialmen’s,repairmen’sorotherlikeLiensarisingintheordinarycourseofbusiness;(iii)Liensincurredordepositsmadeinconnectionwithworkers’compensation,unemploymentinsuranceandothertypesofsocialsecurityorsimilarbenefits;(iv)Liensincurredordepositsmadetosecuretheperformanceoftenders,bids,leases,statutoryobligations,suretyandappealbonds,governmentcontracts,performancebondsandotherobligationsoflikenature;(v)astoanyrealpropertyleaseswithrespecttowhichtherelevantentityisalessee,anyLieneffectingtheinterestofthelandlordthereunderand(vi)Lienstheexistenceofwhichdonotandwillnothave,individuallyorintheaggregate,aMaterialAdverseEffect.

“PermittedTransfer”meansaTransferofallorpartofanyJVInteresttoaPermittedTransferee.

“PermittedTransferee”means:

(i)inthecaseoftheCloroxPartiesandanyPermittedTransfereeofanyCloroxParty:(A)Clorox,(B)anySubsidiaryofClorox,(C)anyPersonthat,togetherwithitsAffiliates,hasacquiredallorsubstantiallyalloftheGladGlobalBusinessfromtheCloroxPartiesortheirPermittedTransferees,and(D)anyotherPersontotheextentP&GhasgivenitspriorwrittenconsenttosuchTransfer;and

(ii)inthecaseofP&GSubandanyPermittedTransfereeofP&GSub,(A)P&G,(B)anySubsidiaryofP&Gand(C)anyotherPersontotheextentCloroxhasgivenitspriorwrittenconsenttosuchTransfer.

“Person”meansanyindividual,corporation,limitedliabilitycompany,partnership,trust,jointstockcompany,businesstrust,unincorporatedassociation,jointventureorotherformofbusinessorlegalentityorGovernmentalAuthority.

“PrimeRate”meanstherateofinterestperannumpubliclyannouncedfromtimetotimebyCitibank,N.A.asitsprimerateineffectatitsprincipalofficeinNewYork,NewYork;eachchangeinthePrimeRatewillbeeffectivefromandincludingthedatesuchchangeispubliclyannouncedasbeingeffective.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“Property”meanstheassetsattributedtotheJointVenture,bothtangibleandintangible.

“PWCReport”meansthereportofPriceWaterhouseCoopersdatedOctober4,2002withrespecttotheGladBusinessandtheGladExistingInternationalBusinesspreviouslyprovidedbyCloroxtoP&G.

“RawMaterialTechnology”meanstechnologyusedintheproductionof[***]thatcanbeusedintheproductionofproducts[***].

“Regulations”meansthefederalincometaxregulationspromulgatedbytheTreasuryDepartmentundertheCode,assuchregulationsmaybeamendedfromtimetotime.AllreferenceshereintoaspecificsectionoftheRegulationswillbedeemedalsotorefertoanycorrespondingprovisionsofsucceedingRegulations.

“RelatedAgreements”means,collectively,(i)theP&GLicenseAgreement,(ii)theP&GServicesAgreement,(iii)theP&GEquipmentTransferDocuments,(iv)theJVSublicenseAgreementsand(v)theGladLicenseAgreements.

“RelatedLocalIntellectualProperty”means,foranyInternationalLicensee,theIntellectualPropertylicensedtosuchInternationalLicenseeundertheapplicableGladLicenseAgreementandJVSublicenseAgreement.

“Reserves”meanscashfundssetasidefromCapitalContributionsorgrosscashrevenuesasreserves.Such“Reserves”willbemaintainedinamountsanduponsuchtimingasisreasonablydeemednecessarybytheBoardtofinanceanyworkingcapitalrequirementsand/ortopaytaxes,insurance,debtservice,repairs,replacements,renewals,capitalexpendituresorothercostsorexpensestobeattributedtotheJointVentureinaccordancewiththeJVAccountingPrinciplesinthefourFiscalQuartersfollowingthedatesuchReservesarebeingestablishedthatwillnotbefundedfromAvailableCashFlowbasedonthethen-currentfinancialforecastsoftheJointVenture.

“SignificantContracts”meansanycontractthatwouldberequiredtobesubmittedtotheboardofdirectorsofCloroxinaccordancewiththepoliciesofCloroxforauthorizationandapprovalofcontractstowhichCloroxoritsSubsidiariesareapartyassuchpoliciesareineffectasoftheOriginalDate.

“SpecificTechnology”meansanytechnology(asitmaybemodifiedwith[***]forspecificapplication[***])thathasspecificapplication[***],includingbutnotlimitedtotechnologythathasa[***]orotherwiseisofspecificutility[***].AnytechnologythatisnotSpecificTechnologyisGeneralTechnology.

“Subsidiary”ofanyPersonmeansanycorporation,partnership,limitedliabilitycompany,jointventureorotherlegalentityofwhichsuchPerson(eitheraloneorthroughortogetherwithanyotherSubsidiary)ownsorhastherighttoacquire,directlyorindirectly,50%ormoreofthestockorotherequityintereststheholderofwhichisgenerallyentitledtovotefortheelectionoftheboardofdirectorsorothergoverningbodyofsuchcorporationorotherlegalentity.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“Taxes”meansallformsoftaxation,duties,leviesandimposts,whetheroftheUnitedStatesorelsewhereincludingincome,chargeablegains,alternativeoradd-onminimum,grossreceipts,sales,use,advalorem,valueadded,franchise,capital,paid-upcapital,profits,greenmail,license,environmental(includingtaxesunderSection59AoftheInternalRevenueCodeof1986,asamended),withholding,payroll,employment,excise,severance,stamp,occupation,premium,realorpersonalproperty,windfallprofit,custom,dutyorothertax,(includingnationalinsurancecontributions)togetherwithanyinterestoranypenaltyoradditiontotax.

“ThirdParty”meansaPersonotherthantheCloroxParties,theP&GPartiesortheirrespectiveAffiliates.

“Transfer”meanstotransfer,sell,hypothecate,encumberorassign,directlyorindirectly,providedthataChangeofControlofCloroxwillnotbeconsideredaTransferofanyJVInterestheldbyanyCloroxPartnerforpurposeshereof,andaChangeofControlofP&GwillnotbeconsideredaTransferofanyJVInterestheldbyanyP&GPartnerforpurposeshereof.

Section1.2OtherDefinitions.

ThefollowingtermsaredefinedintheSectionsindicated:

Term Section

AdditionalAmount 2.6(e)AdditionalContribution 2.6(f)Agreement PreambleArm’sLengthTerms 5.3(a)(v)AuthorizedPersons 7.3(b)(iii)Board 5.1(a)CallRight 6.5(b)CapitalAccount 2.9(a)ChangeofControlNotice 6.4(a)(i)ClassASpecialAmount 3.4(c)(ii)

ClassCSpecialAmount 3.4(c)(i)Clorox PreambleCloroxContribution 2.2(a)(i)CloroxBenefitPlans 4.2(o)CloroxExcludedAssets 2.2(b)CloroxIndemnifiedParties 10.2CloroxParties PreambleCloroxRetainedLiabilities 2.2(c)CloroxServices 7.1(a)Closing 2.1ClosingDate 2.1CompetingBusiness 7.2(c)ConfidentialInformation 7.3(b)DeadlockNotice 6.5(b)(i)DefinedBenefitPlans 7.5(d)

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Term Section

DistributionShortfall 3.4(c)(v)Escalation 5.3(b)ExistingInternationalBalanceSheets 4.2(a)(vii)ExistingProduct 7.2(b)(vii)

FDA 4.2(h)GladLeadershipTeam 5.1(e)HSRAct 7.5(a)IndemnifiedParties 10.2IndemnifyingParty 10.3InitialTerm 6.3(a)IPTransferees 11.12(c)JVAccountingPrinciples 9.1(a)LeasedRealProperty 4.2(e)LossesandExpenses 10.1NegativeCashFlow 2.6(b)NewCountry 7.8OptionExercisePeriod 2.7(a)OptionPrice 2.7(a)OriginalAgreement RecitalsOriginalDate RecitalsOwnedRealProperty 4.2(e)P&G PreambleP&GSub PreambleP&GContribution 2.3(a)(ii)P&GIndemnifiedParties 10.1P&GObservers 5.1(b)P&GOption 2.7(a)P&GTrue-Up 2.6(c)P&GParties PreambleP&GVeto 5.3(b)ParentLoans 2.6(a)Party PreambleProRataPortion 7.5(d)ProhibitedLicenseAmounts 3.4(b)PurchaserPlan 7.5(d)PutRight 6.4(a)ResolutionPeriod 5.3(b)RevisedValuation 6.8(a)QuarterlyFinancials 2.6(b)SEC 4.2(a)(v)SECDocuments 4.2(a)(v)SupplementalSchedule 7.5(e)

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Term SectionTag-AlongRight 6.6(a)TaxMattersPartner 9.2(b)Third-PartySale 6.7(a)Term 6.3(a)

WorkingCapital 4.2(a)(ii)

Section1.3OtherDefinitionalProvisions;Interpretation.

Thewords“hereof,”“herein”and“hereunder”andwordsofsimilarimportwhenusedinthisAgreementwillrefertothisAgreementasawholeandnottoanyparticularprovisionofthisAgreement,andsectionandsubsectionreferencesaretothisAgreementunlessotherwisespecified.TheheadingsinthisAgreementareincludedforconvenienceofreferenceonlyandwillnotlimitorotherwiseaffectthemeaningorinterpretationofthisAgreement.Wheneverthewords“include,”“includes”or“including”areusedinthisAgreement,theywillbedeemedtobefollowedbythewords“withoutlimitation.”Thephrases“thedateofthisAgreement,”“thedatehereof”andtermsofsimilarimport,unlessthecontextotherwiserequires,willbedeemedtorefertothedatesetforthinthefirstparagraphofthisAgreement.Themeaningsgiventotermsdefinedhereinwillbeequallyapplicabletoboththesingularandpluralformsofsuchterms.AllmatterstobeagreedtobyanyPartyhereundermustbeagreedtoinwritingbysuchPartyunlessotherwiseindicatedherein.

ARTICLEII

CONTRIBUTIONSANDALLOCATIONSOFINTEREST

Section2.1ClosingofJointVenture.

SubjecttothesatisfactionorwaiveroftheconditionssetforthinArticleVIII,theclosingofthetransactionscontemplatedbySections2.2and2.3(the“Closing”)willtakeplaceasofthecloseofbusinessPacificTimeonJanuary31,2003attheofficesofCloroxinOakland,California,oratsuchothertimeandplaceasmaybemutuallyagreedtobytheParties(the“ClosingDate”).ThePartiesagreethattheactualexchangeofanydocuments,certificatesassetsoranyotherobjectrequiredtobedeliveredatClosingwilltakeplaceatsuchothertimeandplaceeitherbeforeorafterthecloseofbusinessPacificTimeonJanuary31,2003,asthePartiesreasonablydetermine.

Section2.2CloroxContributionandRelatedMatters.

(a)FromandaftertheClosing,thefollowinginterestsandLiabilitiesoftheCloroxPartiesandtheirSubsidiarieswillbeattributedto,andforincomeTaxpurposeswillbedeemedownedorassumedby,theJointVenture,exceptasprovidedinSection2.2(b)belowwithrespecttoCloroxExcludedAssetsandSection2.2(c)belowwithrespecttoCloroxRetainedLiabilities:

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(i)theinterestoftheCloroxPartiesandtheirrespectiveSubsidiariesontheClosingDateinallofthebusinesses,assets,rightsandproperties(w)reflectedintheGladBalanceSheetexceptassetforthinSchedule2.2(a)(i)hereto,(x)setforthinSection2.2(a)(iii)(C)oftheCloroxDisclosureSchedule(totheextentanasset),(y)subjecttotheJVAccountingPrinciples,totheextentandonlytotheextentutilizedinorrelatedtotheGladBusiness,notreflectedintheGladBalanceSheet,providedthattheJointVentureandtheGladBusinessshallcontinuetohavetherighttouse(inthesamemanner,tothesameextentandonthesameterms)anybusinesses,assets,rightsandpropertiesoftheCloroxPartiesandtheirSubsidiariesthatwouldhavebeenincludedinthisclause(y)butfortheapplicationoftheJVAccountingPrinciplesor(z)subjecttotheJVAccountingPrinciples,totheextentandonlytotheextentutilizedinorrelatedtotheGladBusiness,acquiredafterthedateofsuchGladFinancialStatementsandpriortotheClosingandincluding,fortheavoidanceofdoubt,therightsoftheCloroxPartiesundertheGladLicenseAgreementsasoftheClosingandintheIntellectualPropertylicensedthereunder(collectively,the“CloroxContribution”),andwhichCloroxContributionwillbeallocatedamongtheCloroxPartiesassetforthintheContributionAllocationStatementandforincomeTaxpurposeswillbedeemedcontributedtotheJointVenture;

(ii)subjecttotheJVAccountingPrinciples,theinterestoftheCloroxPartiesandtheirSubsidiariesinanybusiness,asset,rightorpropertyacquiredduringtheTermbytheCloroxPartiestotheextentandonlytotheextentutilizedinorrelatedtotheGladBusiness(fortheavoidanceofdoubt,forincomeTaxpurposes,suchinterestsshallbedeemedtobeacquiredbytheJointVentureratherthancontributedbytheCloroxParties);

(iii)allLiabilitiesoftheCloroxPartiesandtheirSubsidiariestotheextentandonlytotheextent(A)reflectedintheGladBalanceSheetexceptassetforthinSchedule2.2(a)(iii)hereto,(B)incurredorassumedbytheGladBusinessintheordinarycourseofbusinessafterthedateofsuchGladBalanceSheetandpriortotheClosingthatwouldbereflectedascurrentLiabilitiesonabalancesheetoftheGladBusinessasoftheClosingpreparedinaccordancewiththeJVAccountingPrinciples,butexcludinganycurrentLiabilitiesarisingfromthirdpartylitigationclaims,(C)setforthinSection2.2(a)(iii)(C)oftheCloroxDisclosureSchedule(totheextentaLiability),(D)arisingoutoftheconductoftheGladBusinessortheownershiporpossessionofanybusiness,assets,rightsorpropertyoftheGladBusinessduringtheTermor(E)assumedorincurredduringtheTermbytheCloroxPartiesortheirSubsidiariesinaccordancewiththetermshereofwithrespecttotheGladBusiness,providedthatIndebtednesswillbeattributedtotheJointVentureonlytotheextentthattheprovisionsofArticleVhereofwithrespecttoapprovalsarecompliedwithandtheproceedsofsuchIndebtednessareutilizedintheGladBusinesstofinanceexpendituresthatcannotbefinancedbyDistributableCashFlow;and

(iv)allNetIncomeandNetLossandAvailableCashFlowarisinginrespectoftheforegoingandproceedsofanydispositionthereof.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Foravoidanceofdoubt,theinterestsinclauses(i)through(iv)abovewillnotincludeanyinterestsintheGladLicensedBusinessotherthantheinterestsrepresentedbytheGladLicenseAgreementsandnoforeignSubsidiaryofCloroxthatconductstheGladLicensedBusinesswillbeaJVPartnerhereunder.

(b)ThefollowinginterestsoftheCloroxPartiesandtheirSubsidiarieswillbeexcludedfromtheJointVentureandwillnotbeattributedtotheJointVenture(collectively,the“CloroxExcludedAssets”),andfromandaftertheClosingtheJointVenturewillnotincludeanyinterestinanyofthefollowing:

(i)allrightsoftheCloroxPartiesandtheirSubsidiariesunderthisAgreement;

(ii)allinterestsinanybusiness,asset,rightorpropertysold,transferredorotherwisedisposedofafterthedateoftheGladFinancialStatementsandpriortotheClosingintheordinarycourseoftheGladBusinessandnotinviolationofSection7.7hereof;

(iii)allcashandcashequivalentsasoftheClosingotherthanpettycashwithrespecttotheGladBusiness;

(iv)allrefundsorcreditswithrespecttoanyTaxespaidorincurredbyCloroxoritsSubsidiariespriortotheClosingDate,excepttotheextentreflectedontheGladBalanceSheet;

(v)allrefundsorcreditswithrespecttoanyincomeTaxesofCloroxoritsSubsidiariesotherthanrefundsofnon-U.S.incomeTaxesthatwereattributedtotheJointVenturepursuanttoSection2.2(c)(ii);

(vi)allcapitalstockorotherequityinterestsofCloroxanditsSubsidiaries;and

(vii)allrightsoftheCloroxPartiesarisingoutoforinconnectionwithanyRetainedLiabilities,includingwithoutlimitationanycauseofaction,rightofrecovery,rightofset-offorcounterclaim.

(c)FromandaftertheClosing,noneofthefollowingLiabilitieswillbeattributedtotheJointVenture(“CloroxRetainedLiabilities”):

(i)anyLiability(A)arisingoutoforrelatingtotheconductoftheGladBusinessortheownershiporpossessionofanybusiness,assets,rightsorpropertyoftheGladBusinesspriortotheClosingDateor(B)assumedorincurredpriortotheClosingDatebytheCloroxPartiesortheirSubsidiaries,exceptforanyLiabilitiesdescribedinclause(A),(B)or(C)ofSection2.2(a)(iii);

(ii)(A)anyLiabilitywithrespecttoincomeTaxesoftheCloroxPartiesandtheirSubsidiaries,exceptforincomeTaxesimposedbyaTaxauthorityofaforeignjurisdictioninwhichtheJointVentureisconducting(orcausingtobeconducted)theGladBusiness,and(B)anyLiabilityoftheCloroxPartiesandtheirSubsidiarieswithrespecttoTaxesresultingfromeffectingtheCloroxContributionatClosing;

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(iii)anyLiabilityarisingoutoforrelatingtotheCloroxExcludedAssets;

(iv)anyLiabilitywithrespecttothematterssetforthinSection2.2(c)(iv)oftheCloroxDisclosureSchedule;

(v)anyLiabilityoftheCloroxPartiestotheP&GPartiesarisingoutoforrelatedtoanybreachofthisAgreementoranyRelatedAgreementbytheCloroxPartiesortheirSubsidiaries,evenifarisingoutoforrelatedtoconductoftheGladBusinessortheownershiporpossessionofanybusiness,asset,rightorpropertyoftheGladBusinessduringtheTerm;and

(vi)anyLiabilityforwhichtheCloroxPartiesortheirSubsidiarieshaveotherwiseagreedtobeliableandnothaveattributedtotheGladBusinesspursuanttothisAgreementoranyRelatedAgreement.

Section2.3ContributionbyP&GandRelatedMatters.

(a)AsoftheClosing,thefollowinginterestsoftheP&GPartieswillbeattributedto,andforTaxpurposes,willbedeemedcontributedtotheJointVenture:

(i)alicensetocertainIntellectualPropertyrightslicensedtotheCloroxPartiesassetforthintheP&GLicenseAgreement;and

(ii)alltitle,rightandinteresttotheP&GEquipment,thetitletowhichP&GEquipmentwillbeconveyedtooneormoreCloroxPartiesattheClosing,freeandclearofallLiens,exceptforPermittedLiens(collectivelyclauses(i)and(ii),the“P&GContribution”).

(b)FromandaftertheClosing:

(i)therightsoftheCloroxPartiesundertheP&GLicenseAgreementandtheJVSublicenseAgreementswillbeattributedtotheJointVenture;

(ii)theright,titleandinterestoftheCloroxPartiestotheP&GEquipmentwillbeattributedtotheJointVenture;and

(iii)allNetIncomeandNetLossandAvailableCashFlowarisinginrespectoftheforegoingandproceedsofanydispositionthereofwillalsobeattributedtotheJointVenture.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(c)TheP&GPartieswillmakethefollowingdeliveriesontheClosingDateandduringtheTerminconnectionwiththerightsgrantedundertheP&GLicenseAgreement:

(i)WithinareasonabletimeaftertheClosingDate,theP&GPartieswilldelivertoCloroxforuseintheGladBusinessallKnowHowincludedinthe[***]mediumontheClosingDate;

(ii)OnandaftertheClosingDate,theP&GPartieswilldelivertoCloroxforuseintheGladBusiness(A)allKnowHow[***],aspromptlyascommerciallypracticableafteranysuchKnowHow[***];and

(iii)IntheeventthatanyKnowHowisnecessaryfortheCloroxParties’useorpracticeofanyP&GTechnology,butdoesnot,asoftheClosingDateoranylaterdate,[***]thentheP&GParties,atClorox’srequest,willpromptly(x)providetheCloroxPartieswith[***]toClorox.

Section2.4NatureofJVInterest

AnOrdinaryJVInterestrepresentsanundividedparticipationinterestintheGladBusinessandeachJVInterestrepresentsarighttoreceiveincomeandlosses,cashflowandproceedswithrespectthereto,asdescribedherein.AJVInterestdoesnotrepresent,andwillnotbedeemedtoconvey,adirectownershipinterestinanyoftheproperties,assetsorotherrightsoftheGladBusiness,titletowhichwillbeheldbytheCloroxParties,norwillitresultintheassumptionbytheP&GPartiesofanyLiabilitiesoftheGladBusiness.ForincomeTaxpurposesonly,aJVInterestrepresentsacapitalandprofitsinterestintheJointVenture.

Section2.5InitialAllocationsofInterestandCapitalAccounts.

(a)InconsiderationfortheCloroxContribution,attheClosingtheCloroxPartieswillhaveanaggregateinitialOrdinaryJVInterestofninetypercent(90%),theClassAInterestandtheClassBInterestandanaggregateCapitalAccountbalanceaswillbemutuallyagreedbythePartiespriortoClosing.TheJVInterestsandCapitalAccountbalanceofeachindividualCloroxPartyasoftheClosingwillbedeterminedbyCloroxinaccordancewiththeContributionAllocationStatement,butinnoeventwilltheaggregateJVInterestsandCapitalAccountsbalancesoftheCloroxPartiesasoftheClosingexceedthoseprovidedinthefirstsentenceofthisSection2.5(a).

(b)InconsiderationfortheP&GContribution,attheClosingP&GSubwillhaveaninitialOrdinaryJVInterestoftenpercent(10%),theClassCInterestandanaggregateCapitalAccountbalanceaswillbemutuallyagreedbythePartiespriortoClosing.AllJVInterestsandCapitalAccountbalancesoftheP&GPartiesasoftheClosingwillbedeemedtobeownedsolelyandexclusivelybyP&GSub.P&GisapartytothisAgreementforpurposesofguaranteeingtheperformanceofallobligationsofP&GSubandtoperformdirectlycertainobligationspursuanttothisAgreement.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section2.6AdditionalCapitalCallsandParentLoans.

(a)AlladditionalcapitalcontributionsthatwillbeattributedtotheJointVenturewillbemadeinaccordancewiththisSection2.6.Intheeventadditionalfundsarerequiredtofinancespecificcapital,acquisitionorextraordinaryexpendituresoftheGladBusiness,suchfundsmaybeprovidedbytheJVPartnersasloansattributedtotheJointVenture(“ParentLoans”)orasadditionalcontributionsofcapital,ineachcaseasprovidedinthisSection2.6.TheBoardmay,fromtimetotime,issueCapitalCalls,requestingtheJVPartnerstomakeadditionalcontributionsofcapitalinproportiontotheirrespectiveOrdinaryJVInterestsinordertofinanceexpendituresoftheGladBusinessifbasedonthethen-currentfinancialforecastsoftheJointVenture(i)suchexpenditurescannotbefundedentirelyoutofDistributableCashFlowforsuchFiscalQuarterand(ii)ifParentLoansareusedtofinancesuchexpenditures,theAvailableCashFlowduringthenext[***]willbeinsufficienttorepayinfullallParentLoansthatwouldbeoutstandingimmediatelyaftersuchnewParentLoansareincurred.EachJVPartneragreesthatCapitalCallsissuedtoanyJVPartnerwillbepaidbytheJVPartneratitselection.Theremedyfornon-paymentofanyCapitalCallswillbelimitedtotheremedysetforthinthisSection2.6andsuchnon-paymentwillnotbeabreachofthisAgreementpursuanttothisSection2.6(a).Exceptasotherwiserequiredbylaw,noJVPartnerwillberequiredtomakeanyadditionalcontributionstothecapitalattributedtotheJointVenture.AllcapitalcontributionstobeattributedtotheJointVenturewillbepaidbytheJVPartnerstotheaccountoftheCloroxPartnerdesignatedbyCloroxtoreceivesuchcapitalcontributions.

(b)Intheeventthatadditionalfundsarerequiredtofinancespecificcapital,acquisitionorextraordinaryexpendituresoftheGladBusiness,andthethen-currentfinancialforecastsoftheJointVentureindicatethat(i)suchexpenditurescanbefundedentirelyoutofDistributableCashFlowforthatFiscalQuarteror(ii)ifParentLoansareusedtofinancesuchexpenditures,theAvailableCashFlowduringthenext[***]willbesufficienttorepayinfullallParentLoansthatwouldbeoutstandingimmediatelyaftersuchnewParentLoansareincurred,theCloroxPartnerswillprovidesuchadditionalfundsasaParentLoanhavingatermof[***].IntheeventthatAvailableCashFlowforanyFiscalQuarterassetforthinthequarterlyfinancialstatementsoftheJointVentureforsuchFiscalQuartertobedeliveredpursuanttoSection9.1(c)(the“QuarterlyFinancials”)isanegativenumber(suchnumber,the“NegativeCashFlow”)(x)lessthan$[***]andtheaggregateoutstandingParentLoansbytheCloroxPartnerswouldnotexceed$[***]iftheamountofsuchNegativeCashFlowweretreatedasaParentLoanor(y)ifParentLoansareusedtofundtheNegativeCashFlow,theAvailableCashFlowduringthenext[***]willbesufficienttorepayinfullallParentLoansthatwouldbeoutstandingimmediatelyaftersuchnewParentLoansareincurred,thentheamountoftheNegativeCashFlowwillbetreatedasaParentLoanbytheCloroxPartners,whichParentLoanwillbedeemedtohavebeenmadeasofthelastdayoftheFiscalQuartertowhichtheNegativeCashFlowrelates.

(c)IntheeventthatthereisNegativeCashFlowforanyFiscalQuarterthatwillnotbetreatedasaParentLoaninaccordancewithSection2.6(b),thenwithinthree(3)BusinessDaysofdeliveryoftheQuarterlyFinancialspursuanttoSection9.1(c),theBoardwillissueaCapitalCalltoP&GSubinanamount(the“P&GTrue-Up”)equalto:(i)theaggregateamountoftheOrdinaryJVInterestsheldbytheP&GPartners[***](ii)theNegativeCashFlow.IntheeventtheP&GPartnerspaysuchCapitalCall,(A)theproceedsthereofwillbepaidtotheCloroxPartnerdesignatedbyClorox,(B)theP&GPartnerswillbedeemedtohavemadeacapitalcontributiontotheJointVentureintheamountoftheP&GTrue-Up,(C)eachoftheCloroxPartnerswillbedeemedtohavemadeacapitalcontributiontotheJointVentureintheamountof(x)theamountoftheOrdinaryJVInterestheldbysuchCloroxPartner[***](y)theNegativeCashFlowand(D)therespectiveOrdinaryJVInterestsofthePartieswillnotbeadjustedwithrespecttosuchcapitalcontributionsorsuchCapitalCallpaidbyP&GSubordeemedpaidbytheCloroxPartners.IntheeventtheP&GPartnersdeclinetopaysuchCapitalCall,theCloroxPartnerswillbedeemedtohaveadvancedtheamountoftheNegativeCashFlow,whichmaybetreatedasaloanoracontributionbytheCloroxPartnersattheirelectionasprovidedinSection2.6(e)below.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(d)AllParentLoanswillbearinterestcalculatedontheoutstandingprincipalamountthereofforeachdayfromthedatesuchParentLoanismadeuntilitispaidinfullat[***]plus[***]percent([***]%)perannumpayableonaquarterlybasis,andpaymentswithrespecttoanyParentLoanswillbecreditedfirsttoaccruedinterest.SubjecttotheprovisionsofSection3.4(b)(iv),eachParentLoanwillhaveamaturitydateofthelastdayoftheTerm.

(e)SubjecttotheprovisionsofSection2.6(c)hereof,intheeventofthefailureofanyP&GPartnertomakefullandtimelypaymentofanyadditionalcapitalcontributionrequiredbyanyCapitalCallpursuanttothisSection2.6,theCloroxPartnerswillbedeemedtohaveadvancedtotheJointVenturetheentireunpaidamount.SubjecttotheprovisionsofSection2.6(c)hereof,suchadvanceaswellasanyotheramountsthatwouldhavebeendeemedpaidbytheCloroxPartneronitsownbehalfwithrespecttosuchCapitalCalliftheP&GPartnershadpaidsuchCapitalCallinfull(togetherwithsuchadvance,the“AdditionalAmount”)will,attheelectionoftheadvancingCloroxPartner,betreatedineitherofthefollowingmanners:

(i)theAdditionalAmountmaybetreatedasaParentLoan;or

(ii)theAdditionalAmountmaybetreatedasacontributionbytheCloroxPartnerpayingsuchAdditionalAmountattributedtotheJointVentureofalloranyportionofsuchunpaidCapitalCall.

(f)EffectiveuponthemakingofanadditionalcapitalcontributionbyaCloroxPartnerpursuanttoSection2.6(e)(ii)(an“AdditionalContribution”),theOrdinaryJVInterestofeachJVPartnerwillberecalculatedasthatpercentageequaltoafraction:

(i)[***]ofwhichisequaltothesumof(A)(x)theOrdinaryJVInterestofsuchJVPartnerpriortotheAdditionalContribution[***]by(y)theaggregateFairMarketValueofallOrdinaryJVInterestspriortotheAdditionalContributionplus(B)theamount,ifany,oftheAdditionalContributionmadebysuchJVPartner,and

(ii)[***]ofwhichisequaltothesumof(A)theaggregateFairMarketValueofallOrdinaryJVInterestspriortotheAdditionalContribution[***](B)theaggregateamountofallAdditionalContributionsbyalltheJVPartnersmadeatthesametimeassuchAdditionalContribution.

ForpurposesofthisSection2.6(f),priortothethree-yearanniversaryoftheClosingDate,theFairMarketValueofalltheOrdinaryJVInterestswillbenolessthan$[***]plustheaggregateamountofAdditionalContributionsmadeordeemedmadepriortothedateasofwhichsuchFairMarketValueisbeingdetermined.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Bywayofillustration,intheeventtheOrdinaryJVInterestsheldbytheJVPartnersremainunchangedfromtheClosingDateandtheP&GOptionhasnotbeenexercised,andanAdditionalContributionismadebyaCloroxPartnerintheamountof$[***]andtheFairMarketValueforallOrdinaryJVInterestspriortosuchAdditionalContributionisequalto$[***]theOrdinaryJVInterestsheldbytheP&GPartnerswouldbeanaggregateof[***]%andtheOrdinaryJVInterestsheldbytheCloroxPartnerswouldbeanaggregateof[***]%,calculatedasfollows:

[***]%=[***]

[***]%=[***]

Section2.7P&GOption.

(a)DuringtheperiodcommencingontheClosingDateandendingonJanuary1,2008(the“OptionExercisePeriod”),theP&GPartnerswillhavetheoption(the“P&GOption”)toacquirefromtheCloroxPartnersall(butnotlessthanall)of(x)aportionoftheCloroxPartners’OrdinaryJVInterestsequaltotenpercent(10%)ofthetotalOrdinaryJVInterestsasofthedateoftheclosingoftheexerciseoftheP&GOptionand(y)theClassAInterest.The[***]pricetobepaidbyP&GSubtotheCloroxPartners(the“OptionPrice”)willbedeterminedasfollows:

(i)$[***]plustheAdjustmentAmount,ifany,intheeventtheP&GOptionisexercisedonorbeforeJanuary1,2004;

(ii)$133millionplustheAdjustmentAmount,ifany,iftheP&GOptionisexercisedafterJanuary1,2004andonorbeforeJanuary1,2005;

(iii)$[***]plustheAdjustmentAmount,ifany,iftheP&GOptionisexercisedafterJanuary1,2005andonorbeforeJanuary1,2006;

(iv)$[***]plustheAdjustmentAmount,ifany,iftheP&GOptionisexercisedafterJanuary1,2006andonorbeforeJanuary1,2007;and

(v)$[***]plustheAdjustmentAmount,ifany,iftheP&GOptionisexercisedafterJanuary1,2007andonorbeforeJanuary1,2008.

(b)IftheP&GPartnerswishtoexercisetheP&GOption,P&Gwillprovideten(10)BusinessDayspriorwrittennoticetoClorox.TheclosingwithrespecttoanyexerciseoftheP&GOptionwilltakeplaceonthetenthBusinessDayafterexercisebytheP&GPartnersoftheP&GOption,providedthatifallorders,consentsandapprovalsofGovernmentalAuthoritieslegallyrequiredfortheclosingofsuchsalewillnothavebeenobtainedorwillnotbeineffect,orifanywaitingperiodundertheHSRActwillnothaveexpiredorbeenterminated,suchclosingwillbedelayeduntilthetenthBusinessDayaftersuchorders,consentsandapprovalswillbeobtainedandineffectandsuchwaitingperiod,ifany,willhaveexpiredorbeenterminated.PaymentoftheOptionPricewillbebyimmediatelyavailablefundstotheaccountsdesignatedbyClorox.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section2.8RightswithRespecttoCapital.

(a)NoJVPartnerwillhavetherighttowithdraw,orreceiveanyreturnof,itsCapitalContribution,andnoCapitalContributionmaybereturnedintheformofpropertyotherthancashexceptasspecificallyprovidedherein.

(b)ExceptasexpresslyprovidedinthisAgreement,noCapitalContributionofanyJVPartnerwillbearanyinterestorotherwiseentitlethecontributingJVPartnertoanycompensationforuseofthecontributedcapital.

Section2.9CapitalAccounts.

(a)TherewillbeestablishedforeachJVPartneronthebooksoftheJointVentureacapitalaccount(“CapitalAccount”)thatwillbemaintainedinaccordancewiththisSection2.9.

(b)IntheeventaJVPartnertransfersaJVInterestinaccordancewiththetermsofthisAgreement,thetransfereewillsucceedtotheCapitalAccountofthetransferortotheextentitrelatestothetransferredJVInterest.

(c)TheCapitalAccountofeachJVPartnerwillbeincreasedby:

(i)suchJVPartner’scashcontributionsattributedtoanddeemedcontributedtotheJointVenture(includingdeemedcashcontributionsequaltotheamountoforganizationalexpensesincurredbysuchJVPartneronbehalfoftheJointVenture);

(ii)theCarryingValueofpropertyattributedtoanddeemedcontributedbysuchJVPartner(netofLiabilitiessecuredbysuchcontributedpropertythattheJointVentureisconsideredtohaveattributedtoitorsuchpropertyissubjecttounderCodeSection752);

(iii)allitemsofNetProfitsallocatedtosuchJVPartnerpursuanttoArticleIIIorotherprovisionsofthisAgreement,and

(iv)allitemsofincomeandgainspeciallyallocatedtosuchJVPartnerpursuanttoSection3.2.

(d)TheCapitalAccountofeachJVPartnerwillbedecreasedby:

(i)theamountofcashdistributedtosuchJVPartnerasadistributionwithrespecttotheJointVenture;

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(ii)theCarryingValueofallactualanddeemeddistributionsofPropertymadetosuchJVPartnerasadistributionwithrespecttotheJointVenturepursuanttothisAgreement(netofLiabilitiessecuredbysuchdistributedPropertythattheJVPartnerisconsideredtoassumeortakesubjecttounderCodeSection752);

(iii)allitemsofNetLossallocatedtosuchJVPartnerpursuanttoArticleIIIorotherprovisionsofthisAgreement;and

(iv)allitemsofdeduction,expenseorlossspeciallyallocatedtosuchJVPartnerspursuanttoSection3.2.

(e)TheprovisionsofthisAgreementrelatingtothemaintenanceofCapitalAccountsareintendedtocomplywithRegulationsSection1.704-1(b)(2)(iv),andwillbeinterpretedandappliedinamannerconsistentwithsuchRegulationsSection.TotheextentsuchprovisionsareinconsistentwithsuchRegulationsSectionorareincompletewithrespectthereto,CapitalAccountswillbemaintainedandadjustmentstheretowillbemadeinaccordancewithsuchRegulationsSection;provided,however,thatnosuchadjustmentwillhaveanyeffectontheamountdistributablehereundertoanyJVPartner.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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ARTICLEIII

ALLOCATIONSANDDISTRIBUTIONS

Section3.1AllocationofNetProfitsandLosses.

(a)ExceptasotherwiseprovidedinthisArticleIII,NetProfitsandNetLossoftheJointVentureineachFiscalYearwillbeallocatedamongtheJVPartnersinaccordancewiththeirrespectiveOrdinaryJVInterests.

(b)NotwithstandingSection3.1(a)above,NetProfitswithrespecttoeachofthefirsteightFiscalQuartersoftheJointVenturewillbeallocatedamongtheJVPartnersasfollows:

(i)withrespecttothefirstfourFiscalQuartersoftheJointVenture,NetProfitswillbeallocatedonehundredpercent(100%)totheCloroxPartners(proratainaccordancewiththeirrespectiveOrdinaryJVInterests);providedthat,ifP&GSubexercisestheP&GOptiononorpriortothefirstdayofanysuchFiscalQuarter,NetProfitsforsuchFiscalQuarterwillbeallocated(subjecttoadjustmentpursuanttoSection2.6(f))ninetypercent(90%)totheCloroxPartners(proratainaccordancewiththeirrespectiveJVInterests)andtenpercent(10%)totheP&GPartners(proratainaccordancewiththeirrespectiveOrdinaryJVInterests);

(ii)withrespecttothefifththrougheighthFiscalQuartersoftheJointVenture,NetProfitswillbeallocated(subjecttoadjustmentpursuanttoSection2.6(f))ninety-fivepercent(95%)totheCloroxPartners(proratainaccordancewiththeirrespectiveOrdinaryJVInterests)andfivepercent(5%)totheP&GPartners(proratainaccordancewiththeirrespectiveOrdinaryJVInterests);providedthat,ifP&GSubexercisestheP&GOptiononorpriortothefirstdayofanysuchFiscalQuarter,NetProfitsforsuchFiscalQuarterwillbeallocated(subjecttoadjustmentpursuanttoSection2.6(f))eighty-fivepercent(85%)totheCloroxPartners(proratainaccordancewiththeirrespectiveOrdinaryJVInterests)andfifteenpercent(15%)totheP&GPartners(proratainaccordancewiththeirrespectiveOrdinaryJVInterests);and

(iii)notwithstandingtheprovisionsofSection3.1(b)(i)and(ii)above,NetProfitswithrespecttoanysale,transferorotherdispositionofanybusinessorassetsoftheGladBusinessoutsidetheordinarycourseoftheGladBusinessduringthefirsteightFiscalQuarterswillbeallocatedamongtheJVPartnersproratainaccordancewiththeirrespectiveOrdinaryJVInterests.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section3.2SpecialAllocations.

ForpurposesofthefollowingprovisionsofthisSection3.2,theCloroxPartnerswillberegardedasasingleJVPartnerwithasingleCapitalAccount.Notwithstandinganythingcontainedhereintothecontrary:

(a)IfaJVPartnerwouldatanytimereceive,butforthisSection3.2(a),anallocationofdeduction,loss,orexpenditurethatwouldcauseorincreaseadeficitbalanceinsuchJVPartner’sCapitalAccountinexcessofanyamountofsuchdeficitbalancethattheJVPartnerisobligatedtorestoreordeemedobligatedtorestore(asdeterminedinaccordancewithTreasuryRegulationSection1.704-1(b)(2)(ii)(c)),thentheportionofsuchallocationthatwouldcauseorincreasesuchdeficitCapitalAccountbalancewillbespeciallyallocatedtotheotherJVPartners,ifany,withpositiveCapitalAccountbalancesinproportiontosuchbalances.ThelosslimitationunderthisSection3.2(a)isintendedtocomplywithTreasuryRegulationSection1.704-1(b)(2)(ii)(d),includingthereductionsdescribedinsubparagraphs(4),(5)and(6)therein.

(b)IfinanyFiscalYearaJVPartnerreceivesanadjustment,allocationordistributiondescribedinTreasuryRegulationSection1.704-1(b)(2)(ii)(d)(4),(5)or(6),itemsofJointVentureincomeandgainwillbespeciallyallocatedtoeachsuchJVPartnerinanamountandmannersufficienttoeliminate,totheextentrequiredbytheTreasuryRegulations,theCapitalAccountdeficitofsuchJVPartnerasquicklyaspossibleprovidedthatanallocationpursuanttothisSection3.2(b)willbemadeonlyifandtotheextentthatsuchJVPartnerwouldhaveaCapitalAccountdeficitafterallotherallocationsprovidedforinthisArticleIIIhavebeententativelymadeasifthisSection3.2(b)werenotintheAgreement.ThisSection3.2(b)isintendedtoqualifyandbeconstruedasa“qualifiedincomeoffset”withinthemeaningofTreasuryRegulationSection1.704-1(b)(2)(ii)(d)andwillbeinterpretedconsistentlytherewith.

(c)IfthereisanetdecreaseinminimumgainattributedtotheJointVentureorJVPartnernonrecoursedebtminimumgain(determinedinaccordancewiththeprinciplesofTreasuryRegulationSections1.704-2(d)and1.704-2(i))duringanyJointVenturetaxableyear,theJVPartnerswillbeallocateditemsofincomeandgainattributedtotheJointVentureforsuchyear(and,ifnecessary,subsequentyears)inanamountequaltotheirrespectivesharesofsuchnetdecreaseduringsuchyear,determinedpursuanttoTreasuryRegulationSections1.704-2(g)and1.704-2(i)(5).TheitemstobesoallocatedwillbedeterminedinaccordancewithTreasuryRegulationSection1.704-2(f).ThisSection3.2(c)isintendedtocomplywiththeminimumgainchargebackrequirementsinsuchTreasuryRegulationsandwillbeinterpretedconsistentlytherewith,includingthatnochargebackwillberequiredtotheextentoftheexceptionsprovidedinTreasuryRegulationSections1.704-2(f)and1.704-2(i)(4).

(d)TheallocationprovisionssetforthinthisArticleIIIandtheotherprovisionsofthisAgreementrelatingtothemaintenanceofCapitalAccountsareintendedtocomplywithTreasuryRegulationSection1.704-1(b)andwillbeinterpretedandappliedinamannerconsistentwithsuchRegulations;providedhoweverthatsuchprovisionswillnotaffecttheeconomicrightsofanyJVPartner,includingrightstodistributionswithrespecttotheJointVenture.

(e)Anyspecialallocationsofitemsofincome,gain,lossordeductionspursuanttoSections3.2(a),(b)and(c)willbetakenintoaccountincomputingsubsequentallocationspursuanttoSection3.1andthisSection3.2,sothatthenetamountofanyitemssoallocatedwill,totheextentpossible,beequaltothenetamountthatwouldhavebeenallocatedtoeachsuchJVPartnerpursuanttotheprovisionsofthisArticleIIIifsuchspecialallocationshadnotoccurred.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(f)Intheeventthatanyfees,interest,orotheramountspaidtoanyJVPartneroranyAffiliatethereofpursuanttothisAgreementoranyotheragreementattributedtotheJointVenturewithanyJVPartnerorAffiliatethereofprovidingforthepaymentofsuchamount,anddeductedbytheJointVentureinrelianceonSection707(a)and/or707(c)oftheCode,aredisallowedasdeductionstotheJointVentureonitsfederalincometaxreturnandaretreatedasJointVenturedistributions,then:

(i)theNetProfitsorNetLoss,asthecasemaybe,fortheFiscalYearinwhichsuchfees,interest,orotheramountswerepaidwillbeincreasedordecreased,asthecasemaybe,bytheamountofsuchfees,interest,orotheramountsthataretreatedasJointVenturedistributions;and

(ii)therewillbeallocatedtotheJVPartnertowhich(ortowhoseAffiliate)suchfees,interest,orotheramountswerepaid,priortotheallocationspursuanttoSection3.1,anamountofgrossincomefortheFiscalYearequaltotheamountofsuchfees,interest,orotheramountsthataretreatedasJointVenturedistributions.

(g)PriortotheallocationofNetProfitsandNetLossespursuanttoSection3.1,thefollowingallocationsshallbemadeforeachFiscalYear:

(i)TheholderoftheClassAInterestwillbespeciallyallocatedroyaltyincomeattributabletoroyaltypaymentsmadeundertheGladLicenseAgreementsforsuchFiscalYearinanamountofroyaltypayments[***]totheaggregateamountsdistributabletotheholderoftheClassAInterestunderSection3.5(b)(i)hereof(withoutregardtodistributionstreatedasguaranteedpaymentsundersuchSection)ineachFiscalQuarterinsuchFiscalYear.RoyaltyincomeallocatedtotheClassAInteresthereunderwillbeallocatedamongthevarioussourcesofsuchroyaltyincomeinthesamemanneraswithholdingtaxesarecalculatedunderthedefinitionof“DeemedWithholdingTaxes”.TheholderoftheClassAInterestwillalsobespeciallyallocatedincomeforsuchFiscalYearinan[***]oftheIPAllocationAmountswithrespecttoIPAcquisitionsforsuchFiscalYearandwillbespeciallyallocatedallincomeattributabletoGladLicenseTerminationAmountspaidforsuchFiscalYear;

(ii)AftertheallocationspursuanttoSection3.2(g)(i)aremade,theholderoftheClassBInterestwillbespeciallyallocatedroyaltyincomeattributabletoroyaltypaymentsmadeundertheGladLicenseAgreementsforsuchFiscalYearinanamount[***]royaltypaymentsreceivedundertheGladLicenseAgreementsforsuchFiscalYear,[***]theamountofroyaltyincomeallocatedtotheClassAInterestunderSection3.2(g)(i)forsuchFiscalYear.TheholderoftheClassBInterestwillalsobespeciallyallocatedincomeforsuchFiscalYear[***]IPAcquisitionPriceswithrespecttoIPAcquisitions,ifany,forsuchFiscalYearinexcessoftheaggregateIPAllocationAmountsincludedinthecalculationoftheClassASpecialAmountandtheClassCSpecialAmountforeachFiscalQuarterinsuchFiscalYear;

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(iii)TheholderoftheClassCInterestwillbespeciallyallocatedroyaltyincomeattributabletoroyaltypaymentsmadeundertheJVSublicenseAgreementsinsuchFiscalYearinanamountofroyaltypayments[***]royaltypaymentsreceivedundertheJVSublicenseAgreementsforsuchFiscalYear.TheholderoftheClassCInterestwillalsobespeciallyallocatedincomeforsuchFiscalYearinanamount[***]oftheIPAllocationAmountswithrespecttoIPAcquisitionsforsuchFiscalYearandwillbespeciallyallocated[***]attributabletoJVSublicenseTerminationAmountspaidforsuchFiscalYear;

(iv)TheCloroxPartnerswillbespeciallyallocatedalldeductionsarisingfromthepaymentofguaranteedpaymentspursuanttoSection3.5(a)andSection3.5(b)hereofinsuchFiscalYearandshallbespeciallyallocated[***]attributabletoProhibitedLicenseAmountsreceivedonbehalfoftheJointVentureinsuchFiscalYear;and

(v)EachJVPartnerwillbespeciallyallocatedalldeductionsarisingfromtheamortizationoforganizationalexpenses(withinthemeaningofSection709(b)oftheCode)incurredbysuchJVPartneronbehalfoftheJointVenture.

Section3.3Section704(c)Allocation.

(a)Forincometaxpurposesonly,eachitemofincome,gain,loss,anddeductionwithrespecttoanyProperty,theCarryingValueofwhichdiffersfromitsadjustedtaxbasisforfederalincometaxpurposes,willbeallocatedinaccordancewiththeprinciplesofSection704(c)oftheCodesoastotakeintoaccountthevariationbetweentheadjustedtaxbasisofsuchPropertyanditsCarryingValue.ForpurposesofapplyingtheprinciplesofSection704(c)oftheCode,theJointVenturewillusethetraditionalmethoddescribedinTreasuryRegulationSection1.704-3(b)orsuchothermethodsastheJVPartnersunanimouslyagree.

(b)SubjecttotheprovisionsofSection3.3(a),itemsofincome,gain,loss,deductionandcredittobeallocatedforincometaxpurposeswillbeallocatedforeachFiscalYearamongtheJVPartnersinthesamemannerandonthesamebasisasNetProfitsandNetLossareallocated,takingintoaccountspecialallocationsmadepursuanttoSection3.2.

Section3.4DistributionsofAvailableCashFlow.

(a)AftermakingdistributionsofDistributableCashFlowpursuanttoSection3.4(c)foranyFiscalQuarter,allremainingDistributableCashFlowattributedtotheJointVentureforsuchFiscalQuarterwillbedistributedbytheCloroxPartnersinaccordancewiththisSection3.4(a).IfAvailableCashFlowasshownintheQuarterlyFinancialsforanyFiscalQuarterresultsintheDistributableCashFlowforthatFiscalQuarterbeingapositivenumber,adistributionwithrespecttosuchFiscalQuarterwillbemadebytheCloroxPartnerstotheP&GPartnerswithinthree(3)BusinessDaysafterdeliveryofsuchQuarterlyFinancialsandeachCloroxPartnerwillbedeemedtohavereceivedadistributiononthatsamedate.AlldistributionsmadebytheCloroxPartnerspursuanttothisSection3.4willbein[***]totheaccountdesignatedbytheP&GPartnerstoCloroxinwriting.ExceptasotherwiseprovidedinthisSection3.4orArticleVI,alldistributionsofDistributableCashFlowfromanyFiscalQuarterwillbemadetotheJVPartnersproratainaccordancewiththeirrespectiveOrdinaryJVInterestsasofthelastdayofsuchFiscalQuartersothattheamountdistributedtotheP&GPartnerswillequalitsOrdinaryJVInterestasofsuchdaymultipliedbytheaggregateamountofDistributableCashFlow.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(b)NotwithstandingtheprovisionsofSection3.4(a),aftermakingdistributionsofDistributableCashFlowpursuanttoSection3.4(c),

(i)withrespecttothefirstfourFiscalQuartersoftheJointVenture,theremainingDistributableCashFlowwillbedistributedonehundredpercent(100%)totheCloroxPartners(proratainaccordancewiththeirrespectiveOrdinaryJVInterests);providedthatiftheP&GPartnersexercisetheP&GOptiononorpriortothefirstdayofanysuchFiscalQuarter,suchDistributableCashFlowforsuchFiscalQuarterwillbedistributed(subjecttoadjustmentpursuanttoSection2.6(f))ninetypercent(90%)totheCloroxPartners(proratainaccordancewiththeirrespectiveOrdinaryJVInterests)andtenpercent(10%)totheP&GPartners;

(ii)withrespecttothefifththrougheighthFiscalQuartersoftheJointVenture,theremainingDistributableCashFlowwillbedistributed(subjecttoadjustmentpursuanttoSection2.6(f))ninety-fivepercent(95%)totheCloroxPartners(proratainaccordancewiththeirrespectiveOrdinaryJVInterests)andfivepercent(5%)totheP&GPartners;providedthatiftheP&GPartnersexercisestheP&GOptiononorpriortothefirstdayofanysuchFiscalQuarter,suchDistributableCashFlowforsuchFiscalQuarterwillbedistributed(subjecttoadjustmentpursuanttoSection2.6(f))eighty-fivepercent(85%)totheCloroxPartners(proratainaccordancewiththeirrespectiveOrdinaryJVInterests)andfifteenpercent(15%)toP&GPartners;and

(iii)notwithstandingtheprovisionsofSection3.4(b)(i)and(ii)above,distributionsofDistributableCashFlowconsistingofthenetcashproceedsofanysale,transferorotherdispositionofanybusinessorassetsoftheGladBusinessoutsidetheordinarycourseoftheGladBusinessduringthefirsteightFiscalQuarterswillbemadetotheJVPartnersproratainaccordancewiththeirrespectiveOrdinaryJVInterestsasofthelastdayofsuchFiscalQuarter.

(c)PriortoanydistributionsofDistributableCashFlowunderSections3.4(a)or3.4(b),DistributableCashFlowforanyFiscalQuarterwillbedistributedinaccordancewiththisSection3.4(c)inthefollowingorderofpriority:

(i)IntheeventofoneormoreInternationalAcquisitionsthathaverelatedIPAcquisitionsinaFiscalQuarter,theholderoftheClassCInterestwillbeentitledtoadistributionwithrespecttosuchFiscalQuarterofDistributableCashFlowinanamountequaltothesumoftheaggregateIPAllocationAmountswithrespecttoallsuchInternationalAcquisitionsinsuchFiscalYear(the“ClassCSpecialAmount”);

(ii)IntheeventofoneormoreInternationalAcquisitionsthathaverelatedIPAcquisitionsinaFiscalQuarter,theholderoftheClassAInterestwillalsobeentitledtoadistributionwithrespecttosuchFiscalQuarterofDistributableCashFlowequaltothesumoftheaggregateIPAllocationAmountswithrespecttoallsuchInternationalAcquisitionsinsuchFiscalQuarter(the“ClassASpecialAmount”);

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(iii)TheholderoftheClassBInterestwillbeentitledtoadistributionwithrespecttoeachFiscalQuarterofDistributableCashFlowinanamountequaltotheaggregateroyaltypaymentsreceivedundertheGladLicenseAgreements(netofwithholdingtaxesimposedonsuchroyaltypayments)forsuchFiscalQuarter,minustheamountdistributabletotheholderoftheClassAInterestunderSection3.5(b)(i)forsuchFiscalQuarter;

(iv)TheholderoftheClassBInterestwillbeentitledtoaspecialdistributionwithrespecttoeachFiscalQuarterofDistributableCashFlowequaltotheaggregateIPAcquisitionPrices,ifany,forsuchFiscalQuarter,lessthesumoftheClassASpecialAmountandtheClassCSpecialAmountforsuchFiscalQuarter;and

(v)IntheeventthereisinsufficientDistributableCashFlowinanyFiscalQuartertopaytheamountsotherwisedistributableunderthisSection3.4(c)(a“DistributionShortfall”),thereshallbeaprioritydistributionofDistributableCashFlowinthenextsucceedingFiscalQuarterintheamountofsuchDistributionShortfall(andallpriorDistributionShortfallstotheextentadistributionhasnotbeenmadewithrespecttoanysuchDistributionShortfallunderthisSection3.4(c)(v))intheorderofprioritysetforthinthisSection3.4(c)tothePartieswhoweretheholdersoftheClassAInterest,ClassBInterestandClassCInterestatthetimeofsuchDistributionShortfall.NotwithstandinganythingsetforthinthisSection3.4tothecontrary,distributionsunderthisSection3.4(c)(v)shallbemadebeforeanydistributionsaremadeunderSections3.4(c)(i)through(iv),inclusive,foraFiscalQuarter.

AnydistributionsofDistributableCashFlowpursuanttothisSection3.4(c)willreducetheamountofDistributableCashFlowavailablefordistributionpursuanttoSection3.4(a)and3.4(b)hereof.

(d)TotheextentthereareanyoutstandingParentLoans,andthereisAvailableCashFlowinanyFiscalQuarter,thenallAvailableCashFlowwillbeimmediatelyappliedtowardsoutstandingParentLoansandaccruedandunpaidinterestthereonuntilallParentLoansandaccruedinterestthereonwillhavebeenrepaidinfull.AslongasanyParentLoansremainoutstanding,nodistributionswillbemadepursuanttothisSection3.4inrespectoftheJVInterests.

(e)ThePartiesacknowledgethatitisexpectedthattheGladGlobalBusinesswillparticipateinClorox’scentralizedcashmanagementsystemandthatanycashgeneratedbytheGladGlobalBusinessmaybeusedbyCloroxinitsdiscretion,subjecttotheotherprovisionsofthisAgreementandtheRelatedAgreements.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section3.5DistributionsofIPRelatedAmounts.

TheholdersoftheClassCInterestandtheClassAInterestshallbeentitledtodistributionsofthefollowingamountsreceivedundertheJVSublicenseAgreementsandtheGladLicenseAgreements,whichamountsshallbedistributedorpaid,asthecasemaybe,bytheCloroxPartnersonbehalfoftheJointVentureintheorderandprioritysetforthbelowforanyFiscalQuarter:

(a)TheholderoftheClassCInterestwillbeentitledtodistributionsof(i)allroyaltiespaidundertheJVSublicenseAgreementsforsuchFiscalQuarter(netofwithholdingtaxesimposedonsuchroyaltypayments),and(ii)allJVSublicenseTerminationAmountspaidundertheJVSublicenseAgreementsforsuchFiscalQuarter(netofwithholdingtaxesimposedonsuchJVSublicenseTerminationAmounts).IntheeventtheforegoingamountspayableunderanyJVSublicenseAgreementarenotpermittedtobepaidasaresultoflegalrestrictionsinalocaljurisdictionofanInternationalLicensee,theholderoftheClassCInterestshallbeentitledtoreceive,andtheCloroxPartnersonbehalfoftheJointVentureshallcausetobepaid,anamountequaltotheshortfall(reducedbyanywithholdingtaxesthatwouldhavebeenimposedhadthefullamountsdueactuallybeenpaidbytheInternationalLicensee).TheamountofsuchpaymentshallbetreatedasaguaranteedpaymentunderSection707(c)oftheCode.Fortheavoidanceofdoubt,noP&GPartnershallberequiredtocontributeorotherwisefund,directlyorindirectly,suchguaranteedpayments.IftheInternationalLicenseeislaterpermittedbythelocaljurisdictiontomakeroyaltypaymentsthatwerepreviouslyprohibited,theamountofsuchpaymentsreceivedshallbedistributedtotheCloroxPartners.

(b)TheholderoftheClassAInterestwillbeentitledtodistributionsof(i)royaltiespaidundertheGladLicenseAgreementsforsuchFiscalQuarterinanamountequaltotheClassARoyaltyAmount(or,intheeventtheaggregateroyaltypaymentspaidundertheGladLicenseAgreementsforsuchFiscalQuarter(netofwithholdingtaxesimposedonsuchroyaltypayments)arelessthantheClassARoyaltyAmount,suchlesseramountofroyaltypayments)and(ii)allGladLicenseTerminationAmountspaidundertheGladLicenseAgreementsforsuchFiscalQuarter(netofwithholdingtaxesimposedonsuchamounts).IntheeventtheP&GOptionhasbeenexercised,totheextent(x)theaggregateroyaltypaymentsundertheGladLicenseAgreementsforaFiscalQuarterarelessthantheClassARoyaltyAmountforsuchFiscalQuarteror(y)GladLicenseTerminationAmountsarenotpermittedtobepaidasaresultoflegalrestrictionsinalocaljurisdictionofanInternationalLicensee,theholderoftheClassAInterestwillbeentitledtoreceive,andtheCloroxPartnersonbehalfoftheJointVentureshallcausetobepaidanamountequaltosuchshortfall(inthecaseofclause(y),reducedbyanywithholdingtaxesthatwouldhavebeenimposedhadthefullamountsdueactuallybeenpaidbytheInternationalLicensee).TheamountofsuchpaymentshallberegardedasaguaranteedpaymentunderSection707(c)oftheCode.Fortheavoidanceofdoubt,noP&GPartnershallberequiredtocontributeorotherwisefund,directlyorindirectly,suchguaranteedpayments.IftheInternationalLicenseeislaterpermittedbythelocaljurisdictiontomakeroyaltypaymentsthatwerepreviouslyprohibited,theamountofsuchpaymentsreceivedshallbedistributedtotheCloroxPartners(suchamounts,togetherwiththeamountsdescribedinthelastsentenceofSection3.5(a)hereof,shallbereferredtoas“ProhibitedLicenseAmounts”).

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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ARTICLEIV

REPRESENTATIONSANDWARRANTIES

Section4.1RepresentationsandWarrantiesofalltheParties.

EachoftheCloroxPartiesherebyjointlyandseverallyrepresentsandwarrantstotheP&GPartieswithrespecttoeachGladParty,andeachoftheP&GPartiesherebyjointlyandseverallyrepresentsandwarrantstoeachoftheCloroxPartieswithrespecttoeachoftheP&GParties,asfollows,ineachcasesubjecttotheexceptionssetforthontheCloroxDisclosureSchedule,ortheP&GDisclosureSchedule,asapplicable:

(a)OrganizationandAuthority.SuchPartyisdulyorganized,validlyexistingandingoodstandingunderthelawsofitsjurisdictionoforganization,andhastherequisitepowerandauthoritytoown,leaseandoperateitspropertiesandtoconductitsbusinessasnowconductedbyit.SuchPartyhasallrequisitepowerandauthoritytoenterintothisAgreementandtheRelatedAgreementstowhichitisapartyandtoperformitsobligationshereunderandthereunder.SuchPartyisqualifiedtodobusinessandisingoodstandingasaforeigncorporation,partnershiporotherentity,asapplicable,inalljurisdictionsinwhichitconductsitsbusiness,exceptwherethefailuretobesoqualifieddoesnotandwillnot,individuallyorintheaggregate,haveaMaterialAdverseEffect.

(b)Authorization.Theexecution,deliveryandperformancebysuchPartyofthisAgreementandtheRelatedAgreements,ineachcasetowhichitisaparty,andtheconsummationbysuchPartyofthetransactionscontemplatedherebyandtherebyhavebeendulyauthorizedbyallnecessarycorporateactiononthepartofsuchParty.ThisAgreementhasbeen,andeachoftheRelatedAgreementswillontheClosingDatebe,ineachcasetowhichitisaparty,dulyexecutedanddeliveredbysuchPartyandconstitutesor,inthecaseoftheRelatedAgreements,uponexecutionthereofbyallotherappropriatepartieswillconstitute,avalidandlegallybindingobligationofsuchParty,enforceableagainstitinaccordancewithitsterms,subjecttotheeffectsofbankruptcy,insolvency,fraudulentconveyance,reorganization,moratoriumandothersimilarlawsrelatingtooraffectingcreditors’rightsgenerally,generalequitableprinciples(whetherconsideredinaproceedingatequityoratlaw)andanimpliedcovenantofgoodfaithandfairdealing.

(c)ConsentsandApprovals;NoConflicts.Theexecution,deliveryandperformancebysuchPartyofthisAgreementandtheRelatedAgreements,ineachcasetowhichitisaparty,andtheconsummationbysuchPartyofthetransactionscontemplatedherebyandtherebywillnot(i)conflictwithorresultinabreachofanyprovisionofthecharterorbylaws(orequivalentgoverningdocuments)ofsuchParty,(ii)requireanyconsent,approval,authorizationorpermitof,orfilingwithornotificationto,anyGovernmentalAuthority,(iii)requiretheconsentorapprovalofanyPerson(otherthanaGovernmentalAuthority)orviolateorconflictwith,orresultinabreachofanyprovisionof,constituteadefault(oraneventwhichwithnoticeorlapseoftimeorbothwouldbecomeadefault)orgivetoanythirdpartyanyrightoftermination,cancellation,amendmentoraccelerationunder,orresultinthecreationofaLienonanyoftheassetsattributedtotheJointVentureunder,anyoftheterms,conditionsorprovisionsofanycontractorlicensetowhichsuchPartyisapartyorbywhichitoritsassetsorpropertyarebound,or(iv)violateorconflictwithanyorder,writ,injunction,decree,statute,ruleorregulationapplicabletosuchParty;otherthananymattersdescribedinclauses(ii),(iii)and(iv)abovewhich,individuallyorintheaggregate,donotandwillnothaveaMaterialAdverseEffect.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(d)CertainFees.NeithersuchPartynoranyofitsofficers,directorsoremployees,onbehalfofsuchParty,hasemployedanybrokerorfinderorincurredanyotherLiabilityforanybrokeragefees,commissionsorfinders’feesinconnectionwithtransactionscontemplatedhereby.

Section4.2RepresentationsandWarrantiesoftheCloroxParties.

EachoftheCloroxPartiesherebyjointlyandseverallyrepresentsandwarrantstotheP&GPartiesasfollows,ineachcasesubjecttotheexceptionssetforthontheCloroxDisclosureSchedule:

(a)FinancialStatements.

(i)TheGladFinancialStatementswerederivedfromthebooksandrecordsoftheGladBusiness.TheGladBalanceSheethasbeenpreparedinaccordancewiththemethodologiessetforthinthePWCReportconsistentlyapplied.TheincomestatementincludedintheGladFinancialStatementshasbeenpreparedinaccordancewiththeJVAccountingPrinciples.TheapplicationoftheJVAccountingPrincipleswillnotaffectthestatementofresultsofoperationsincludedintheGladFinancialStatements.TheGladFinancialStatementsfairlyandtrulypresentinaccordancewiththeJVAccountingPrinciplesthefinancialpositionoftheGladBusinessasatJune30,2002andtheresultsofitsoperationsfortheyearthenended,beforedeductionsforanyincomeTaxesandaftercertaininternaladjustmentsindicatedinthenotesthereto.

(ii)AsoftheClosing,theGladBusinesswillhavesufficientWorkingCapitaltooperatetheGladBusinessaftertheClosingintheordinarycourseconsistentwithpastpractice.Forpurposeshereof,“WorkingCapital”iscalculatedas(i)thecurrentassetsoftheGladBusinessattributedtotheJointVentureminus(ii)thecurrentLiabilitiesoftheGladBusinessattributedtotheJointVenture,preparedandcalculatedasprovidedintheimmediatelyprecedingsentence.

(iii)ExceptasandtotheextentdisclosedintheGladBalanceSheetand,exceptforLiabilitiesincurredinconnectionwiththetransactionscontemplatedbythisAgreementandtheRelatedAgreements,therearenoLiabilitiesoftheGladBusiness,thatwouldberequiredtobereflectedon,orreservedagainst,inaconsolidatedbalancesheetoftheGladBusinessinaccordancewiththeJVAccountingPrinciples,exceptfor(x)Liabilitieswhich,singlyorintheaggregate,donotandwillnothaveaMaterialAdverseEffect,and(y)LiabilitiesincurredsubsequenttothedateofsuchbalancesheetbytheGladBusinessintheordinarycourseofbusinessconsistentwithpastpractice.

(iv)AnyhedgearrangementsincludedintheLiabilitiestobeattributedtotheGladGlobalBusinesspursuanttoSection2.2(a)(iii)(c)relatetotheunderlyingbusinessoperationsoftheGladGlobalBusinessandarenotheldforspeculativepurposes.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(v)Cloroxhasfiledonatimelybasisallforms,reportsanddocumentsrequiredtobefiledwiththeUnitedStatesSecuritiesandExchangeCommission(the“SEC”)sinceJuly1,2001(allforms,reportsanddocumentsfiledbyCloroxwiththeSECsinceJuly1,2001arereferredtohereinasthe“SECDocuments”).TheSECDocuments(A)compliedastoforminallmaterialrespectswiththerequirementsoftheSecuritiesActof1933,asamended,ortheExchangeActof1934,asamended,asthecasemaybe,andtherulesandregulationsthereunder,eachasineffectonthedatesofiledoramended,and(B)didnotatthetimetheywerefiled(orifamendedorsupersededbyafilingpriortothedateofthisAgreement,thenonthedateofsuchfiling)containanyuntruestatementofamaterialfactoromittostateamaterialfactrequiredtobestatedthereinornecessaryinordertomakethestatementstherein,inthelightofthecircumstancesunderwhichtheyweremade,notmisleading.

(vi)ThemostrecentauditedannualfinancialstatementsandunauditedquarterlyfinancialstatementsincludedintheSECDocumentswerepreparedinaccordancewithGAAPappliedonaconsistentbasisthroughouttheperiodsinvolved(exceptasmaybeindicatedinthenotestheretoorintheSECDocuments),andeachfairlypresentstheconsolidatedfinancialpositionofCloroxanditsSubsidiariesattherespectivedatesthereofandtheconsolidatedresultsoftheiroperationsandcashflowsfortheperiodsindicated,exceptthattheunauditedinterimfinancialstatementswereoraresubjecttonormalandrecurringyear-endadjustmentsanddonotcontainallofthefootnotedisclosuresrequiredbyGAAP.

(vii)EachofthebalancesheetssetforthinthePWCReportwithrespecttotheGladExistingInternationalBusinessinCanada,AustraliaandNewZealand(the“ExistingInternationalBalanceSheets”)hasbeenpreparedinaccordancewiththemethodologiessetforthinthePWCReportconsistentlyapplied,andisaccuratebasedonsuchmethodologies.TheapplicationoftheJVAccountingPrinciplestotheExistingInternationalBalanceSheetswillnotaffectthestatementofresultsofoperationsincludedinthePWCReportwithrespecttotheGladExistingInternationalBusinessinCanada,AustraliaandNewZealand.TheincomestatementsincludedinthePWCReportwithrespecttotheGladExistingInternationalBusinessinCanada,AustraliaandNewZealandfairlyandtrulypresentinaccordancewiththeJVAccountingPrinciplestheresultsofoperationsoftheGladExistingInternationalBusinessinsuchcountriesinaccordancewiththeJVAccountingPrinciples,excludingcostsincludedthereinthatwouldbechargedthroughtheCloroxServicesinaccordancewithExhibitF.

(viii)TherearenoLiabilitiesoftheGladExistingInternationalBusinessinSouthAfrica,CostaRica,HongKong,PhilippinesandKorea,singlyorintheaggregate,which,inlightofthebusiness,properties,assetsandcashflowoftheGladExistingInternationalBusinessinsuchcountries,doorwillhaveamaterialadverseeffectuponthebusiness,properties,financialconditionorresultsofoperationsoftheGladExistingInternationalBusinessoraMaterialAdverseEffect.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(b)AbsenceofCertainChangesorEvents.SinceJune30,2002,theGladPartieshaveconductedtheGladGlobalBusinessinallmaterialrespectsonlyintheordinarycourse,consistentwithpastpracticeandexceptasreflectedintheGladFinancialStatements,sincesuchdatetherehasnotbeen,priortothedatehereof,(i)anymaterialadversechangeinthebusiness,properties,financialconditionorresultsofoperationsoftheGladGlobalBusiness,exceptasmayarisefromorrelatetochangesingeneraleconomicconditionsinthegeographicregionsinwhichtheGladGlobalBusinessoperatesor(ii)anydamage,destruction,loss,conversion,condemnationortakingbyeminentdomainrelatedtoanymaterialpropertyorassetsoftheGladGlobalBusinessexceptforsuchmattersthat,individuallyorintheaggregate,donotandwillnothaveaMaterialAdverseEffectrelatedtotheGladGlobalBusiness.

(c)SufficiencyofandTitletoProperties;AbsenceofLiensandEncumbrances.TheCloroxPartiesandtheirSubsidiarieshavegoodtitletoallproperties,assetsandotherrightsreflectedasownedbytheCloroxPartiesontheGladBalanceSheetoracquiredafterthedateofsuchGladBalanceSheetandpriortotheClosingDate,aswellasallotherproperties,assetsandotherrightsincludedintheCloroxContribution,freeandclearofallLiens(otherthanPermittedLiens),exceptforanysuchproperties,assetsorotherrightssold,transferredorotherwisedisposedofafterthedateoftheGladBalanceSheetandpriortotheClosingintheordinarycourseoftheGladBusinessandnotinviolationofSection7.7hereof.TheGladPartiesandtheirSubsidiarieswillownorhavetherighttouseallproperties,assetsandotherrightsusedtogeneratetheincomereflectedintheincomestatementsincludedinthePWCReportwithrespecttotheGladExistingInternationalBusinessexceptforanysuchproperties,assetsorotherrightssold,transferredorotherwisedisposedofafterthedateofsuchincomestatementsandpriortotheClosingintheordinarycourseoftheGladExistingInternationalBusinessandnotinviolationofSection7.7hereof.

(d)Properties,Contracts,PermitsandOtherData.Allrights,licenses,leases,registrations,applications,contracts,commitmentsandotheragreementsoftheGladGlobalBusinessorbywhichtheassetsusedintheGladGlobalBusinessareboundareinfullforceandeffectandarevalidandenforceableinaccordancewiththeirrespectivetermsexceptforsuchfailurestobeinfullforceandeffectandvalidandenforceablethatdonotandwillnot,individuallyorintheaggregate,haveaMaterialAdverseEffect.TheGladPartiesarenotinbreachordefaultintheperformanceoftheirobligationsthereunderwithrespecttotheGladGlobalBusinessandnoeventhasoccurredorhasfailedtooccurwherebyanyoftheotherpartiestheretohavebeenorwillbereleasedtherefromorwillbeentitledtorefusetoperformthereunder,exceptforsuchmatterswhichdonotandwillnotindividuallyorintheaggregate,aMaterialAdverseEffect.

(e)RealProperty.WithrespecttoanyrealpropertyownedbytheGladPartiesandusedintheGladGlobalBusiness(the“OwnedRealProperty”),theGladPartieshavegoodtitletosuchparcel,freeandclearofallLiens,exceptforPermittedLiens,and(i)therearenoleases,subleases,licensesoragreementsgrantingtoanypartyorpartiestherightofuseoroccupancyofanyportionofsuchOwnedRealProperty;andtherearenooutstandingoptionsorrightsoffirstrefusaltopurchasesuchparcel,oranyportionthereoforinteresttherein,ineachcaseexceptas,individuallyorintheaggregate,donotandwillnothaveaMaterialAdverseEffect.WithrespecttoanyrealpropertyleasedbytheGladPartiesandusedintheGladGlobalBusiness(the“LeasedRealProperty”),noneoftheGladPartieshasassigned,transferred,conveyed,mortgaged,deededintrustorencumberedanyinterestintheleaseholdorsubleaseholdunderanyLeasedRealPropertyandtherearenoleases,subleases,licensesoragreementsgrantingtoanythirdpartyorpartiestherightofuseoroccupancyofanyportionofanyLeasedRealProperty,ineachcaseexceptasdonotandwillnothaveaMaterialAdverseEffect.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(f)LegalProceedings.AsofthedateofthisAgreement,thereisnomateriallitigation,proceedingorgovernmentalinvestigationtowhichanyGladPartyisapartypendingor,totheknowledgeoftheCloroxParties,threatenedagainsttheGladPartiesortheirrespectiveSubsidiariesarisingoutoforrelatedtotheGladGlobalBusinessorassetsusedintheGladGlobalBusinessorthetransactionscontemplatedbythisAgreementorwhichseekstorestrainorenjointheconsummationofanyofthetransactionscontemplatedhereby.TheGladPartiesarenotapartytowithrespecttotheGladGlobalBusiness,noraretheassetsusedintheGladGlobalBusinesssubjectto,anymaterialjudgment,writ,decree,injunctionororderenteredbyanycourtorGovernmentalAuthority(domesticorforeign).

(g)LaborControversies.(i)Therehavebeennolaborstrikes,slow-downs,workstoppagesorlock-outsduringthepastthreeyears,norisanysuchstrike,slow-down,workstoppageorlock-outpendingor,totheknowledgeoftheCloroxParties,threatenedwithrespecttothecurrentorformeremployeesoftheGladPartiesperformingserviceswithrespecttotheGladGlobalBusinessand(ii)theGladPartiesarenotpartywithrespecttotheGladGlobalBusinesstoanycollectivebargainingagreement,contract,letterofunderstandingor,totheknowledgeoftheCloroxParties,anyotheragreement,formalorinformalwithanylaborunionororganization.

(h)IntellectualPropertyandTechnology.TheGladPartiesown,orarelicensedtouse,allIntellectualPropertyusedintheGladGlobalBusinessasofthedatehereofandasusedduringthe[***].ThepatentsandtrademarksusedintheGladGlobalBusinessareunexpiredandhavenotbeenabandonedotherthanpursuanttoareasonablebusinessdecisionmadeintheordinarycourseofbusiness.ThepatentsandtrademarksoftheGladGlobalBusinessarevalidandenforceable.TotheknowledgeoftheCloroxParties,theIntellectualPropertyusedintheGladGlobalBusinessisnotbeingInfringedbyanythirdparty.TheconductoftheGladGlobalBusiness,includingtheuseorpracticeofthepatentsintheGladGlobalBusinessandtheuseofthetrademarksintheGladGlobalBusiness,consistentwithpastpracticeduringthe[***]doesnotInfringeuponormisappropriatetheIntellectualPropertyofanythirdparty.Exceptasexpresslyprovidedinthe[***]noneoftherightsofCloroxoritsAffiliatestoanyIntellectualPropertyusedintheGladGlobalBusinesswillbeimpairedbythetransactionsprovidedforherein.Therearenocurrentlypendingclaims(whetherprivateorgovernmental)againstanyoftheGladParties,ortotheirknowledgethreatened,thatseektolimittheirrighttouseanyoftheIntellectualPropertyusedbytheGladPartiesinconductingtheGladGlobalBusinessorallegingthattheuseofanyIntellectualPropertybytheGladPartiesdoesnotcomplywithanygovernmentalregulation,orthatseektocancelorquestionthevalidity,enforceability,ownershiporuseofanyIntellectualPropertyusedintheGladGlobalBusiness.TheGladPartieshavetakenallreasonablestepstoprotect,maintainandsafeguardtheIntellectualPropertyusedintheGladGlobalBusiness.Thefoodstorage,bags,wrapsandcontainerproductsoftheGladBusinesscontainonlysubstancesthatarefood-contactsafeasdeterminedbytheUnitedStatesFoodandDrugAdministration(“FDA”)anddonotcontainanyothersubstancesthatrequireapprovaloftheFDAoranyotherGovernmentalAuthority.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(i)GovernmentLicenses,Permits,Etc.TheGladPartieshavealllicenses,permits,consents,approvals,authorizations,qualificationsandordersofGovernmentalAuthoritiesrequiredfortheconductoftheGladGlobalBusinessaspresentlyconductedbytheGladPartiesconsistentwithpastpractice,exceptwherefailuredoesnotandwillnot,individuallyorintheaggregate,haveaMaterialAdverseEffect.

(j)ConductofBusinessinCompliancewithRegulatoryandContractualRequirements.TheGladPartieshavecompliedinconductingtheGladGlobalBusinesswithallapplicablelaws,ordinances,regulationsorordersorotherrequirementsofanyGovernmentalAuthority,includingallrules,regulationsandadministrativeordersrelatingtoanti-competitivepractices,discrimination,employment,healthandsafety,exceptforsuchmatterswhichdonotandwillnothave,individuallyorintheaggregate,aMaterialAdverseEffect.

(k)EnvironmentalMatters.Exceptformattersthat,individuallyorintheaggregate,donotandwillnothaveaMaterialAdverseEffect,(i)therearenoMaterialsofEnvironmentalConcernatanypropertyownedorleasedbytheGladPartiesandusedintheconductoftheGladGlobalBusinessthathaveorwillgiverisetoanyLiabilityunderanyEnvironmentalLaw;and(ii)nojudicial,administrative,orarbitralproceeding(includinganynoticeofviolationorallegedviolation)underanyEnvironmentalLawtowhichanyGladPartyis,ortotheknowledgeoftheCloroxPartieswillbe,namedasapartyispendingor,totheknowledgeoftheCloroxParties,threatenedwithrespecttotheGladGlobalBusiness.

(l)TaxMatters.

Exceptformattersthat,individuallyorintheaggregate,donotandwillnot,haveaMaterialAdverseEffect:

(i)(x)theGladPartieshave(A)dulyandtimelyfiledwiththeappropriatetaxauthorityallTaxreturnsrequiredtobefiledbyorwithrespecttotheGladGlobalBusiness,and(B)paidinfullallTaxesduebyorinrespectoftheGladGlobalBusinessforallperiods;and(y)theGladPartieshave,inrespectoftheGladGlobalBusiness,properlywithheldamountsforTaxesfromitsemployeesandhasmadeallremittancesofamountsrequiredtobewithheldand,withrespecttosuchemployees,hasfiledallTaxreturnsandreportsrequiredtobefiledwithanytaxauthority;

(ii)thereisnoexistingTaxauditorproceedingbetweenanyGladPartyandanyTaxauthoritywithrespectto,orwhichmayhaveaneffecton,theGladGlobalBusiness;therearenoclaimsforTaxesthathavebeenassertedorproposedinwritingagainstanyGladPartywithrespectto,orwhichmayhaveaneffecton,theGladGlobalBusiness;and

(iii)therearenoLiensforTaxes,noranypendingorthreatenedLiensforTaxes,uponanypropertyorassetsoftheGladGlobalBusiness,exceptforLiensforcurrentTaxesnotyetdue.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(m)EntireBusiness.Exceptfor(i)theCloroxExcludedAssets,(ii)theproperties,assetsandotherrightsusedbyCloroxanditsSubsidiariestoconducttheCloroxServicesand(iii)theproperties,assetsandotherrightsusedbytheGladPartiestoconducttheGladExistingInternationalBusiness,theCloroxContributionconstitutesalloftheproperties,assets,contractsandotherrightsnecessaryfortheconductoftheGladGlobalBusinessascurrentlyconductedbytheGladPartiesconsistentwithpastpractice.

(n)AffiliateTransactions.ExceptfortransactionsandothermatterssubjecttotheJVAccountingPrinciplesortheRelatedAgreementsandfortheCloroxServices,therearenoagreements,arrangements,undertakingsorothertransactionsbetweentheGladGlobalBusinessandanyotherbusinessordivisionofClorox,exceptfortransactionsintheordinarycourseofbusinessontermscomparableinallmaterialrespectstothosethatitwouldobtaininacomparablearm’slengthtransactionwithathirdpartythatisnotanAffiliate.

(o)EmployeeBenefitMatters.Eachemployeebenefitplan,severance,change-in-controloremploymentplan,programoragreement,stockoption,bonusplan,orincentiveplanorprogramoftheGladPartieswithrespecttoemployeesengagedinconductingtheGladGlobalBusiness(suchplans,the“CloroxBenefitPlans”)hasbeenadministeredandisincompliancewiththetermsofsuchCloroxBenefitPlanandallapplicablelaws,rulesandregulationsexceptwherethefailurethereofdoesnotandwillnot,individuallyorintheaggregate,resultinLiabilitythathasorwillhaveaMaterialAdverseEffect.NolitigationoradministrativeorotherproceedinginvolvinganyCloroxBenefitPlanhasoccurredor,totheknowledgeoftheCloroxParties,isthreatenedwhereanadversedeterminationwouldresultinLiabilitythathasorwillhaveaMaterialAdverseEffect.

(p)Insurance.TheGladPartieshaveinsurancepolicieswithrespecttotheassetsandLiabilitiesattributedtotheGladGlobalBusinessthatareofthetypeandinamountsthatareadequatetoprotectandconducttheGladGlobalBusiness.ThereisnomaterialclaimbyCloroxoranyofitsSubsidiariespendingunderanyofsuchinsurancepolicies.

Section4.3RepresentationsandWarrantiesofP&G.

EachoftheP&GPartiesherebyjointlyandseverallyrepresentsandwarrantstotheCloroxPartiesasfollows,subjecttotheexceptionssetforthontheP&GDisclosureSchedule:

(a)P&GEquipment.TheP&GPartiesortheirAffiliateshave,andattheClosingtheCloroxPartieswillreceive,goodandmarketabletitletotheP&GEquipment,freeandclearofallLiensexceptforPermittedLiens.TheP&GEquipmentisingoodconditionand,totheextentinstalled,hasbeenreasonablymaintainedconsistentwithstandardsgenerallyfollowedintheindustry,andissuitableforuseasitiscurrentlyusedandascurrentlyexpectedtobeusedinconnectionwiththeGladGlobalBusinessaftertheClosing.

(b)LegalProceedings.AsofthedateofthisAgreement,thereisnomateriallitigation,proceedingorgovernmentalinvestigationtowhichtheP&GPartiesortheirAffiliatesisapartypendingor,totheknowledgeoftheP&GParties,threatenedagainstP&GoritsSubsidiariesorrelatingtotheP&GEquipmentorthetransactionscontemplatedbythisAgreementorwhichseekstorestrainorenjointheconsummationofanyofthetransactionscontemplatedhereby.NoneoftheP&GPartiesisapartyto,noristheP&GEquipmentsubjectto,anymaterialjudgment,writ,decree,injunctionororderenteredbyanycourtorGovernmentalAuthority(domesticorforeign).

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section4.4SurvivalofRepresentationsandWarranties

TherepresentationsandwarrantiesgivenbythePartiesinthisArticleIVandcontainedinthecertificatesdeliveredpursuanttoArticleVIIIwillsurviveuntiltheeighteen(18)monthanniversaryoftheClosingDate,atwhichtimesuchrepresentationsandwarrantieswillterminateandhavenofurtherforceoreffectexceptforanyclaimofbreachthathasbeenmadeinwritingtoClorox(inthecaseofanybreachofrepresentationorwarrantybytheCloroxParties)ortheP&GParties(inthecaseofanybreachofrepresentationorwarrantybytheP&GParties)priortosuchtermination.

ARTICLEV

GOVERNANCE

Section5.1BoardofManagers.

(a)Theday-to-daybusinessoftheJointVenturewillbemanagedbytheCloroxPartners,underthedirectionandcontroloftheboardofmanagersoftheJointVenture(the“Board”).TheBoardwillconsistoffive(5)managersorsuchothernumber(butinnoeventfewerthanthree(3))asmaybeestablishedfromtimetotimebytheBoard.TheCloroxPartnersandtheP&GPartnerswillbeentitledtorepresentationontheBoardinproportiontotheirrespectiveJVInterests,providedthatthenumberofmanagersthateachoftheCloroxPartners(together)andtheP&GPartners(together)mayappointwillberoundedtothenearestwholenumber.Notwithstandingtheforegoing,duringtheTerm,theP&GPartners(together)willhavetherighttoappointatleastonememberoftheBoard.TheremainingmembersoftheBoardwillbeappointedbytheCloroxPartners,providedthat,intheeventthetotalnumberofmembersisadjusted,theCloroxPartnerswillinallcaseshavetherighttoappointamajorityoftheBoard.IntheeventtheP&GPartnersexercisetheP&GOption,theP&GPartners’representationontheBoardwillbeadjusted,ifnecessary,soastocomplywiththisSection5.1(a).EachJVPartnerwillhavetherighttoremoveanddesignatereplacementsofthosemembersoftheBoardappointedbyit,andeachJVPartneragreestotakeanyactionsnecessarytocausesuchdesignationsorremovalsinaccordancewiththisSection5.1tobegivenimmediateeffect,andtogiveeffecttodecisionsoftheBoardvalidlytakeninaccordancewiththetermshereof.TheinitialBoardwillconsistofWarwickEvery-Burns,WayneDelker,GregFrankandLarryPeirosastheCloroxPartners’appointeesandRobertMcDonaldastheP&GPartners’appointee.ReplacementBoardmembersdesignatedbytheP&GPartnerswillbereasonablyacceptabletoClorox.TheBoardwillappointbymajorityvoteoneofitsmembersappointedbytheCloroxPartnerstopresideatmeetingsoftheBoard.

(b)TheP&GPartnerswillalsobeentitledtodesignateinwritingtoCloroxuptotwo(2)representativesreasonablysatisfactorytoCloroxtoattendallmeetingsoftheBoardinanonvotingobservercapacity(the“P&GObservers”).Suchrepresentativeswillreceivecopiesofallnotices,minutes,consents,andothermaterialsasandwhenprovidedtothemembersoftheBoard,providedthatallsuchrepresentativesmustagreetobeboundbythesamepoliciesandagreementsrelatingtoconfidentialitywithrespecttoinformationconcerningtheJointVentureasapplytothemembersoftheBoardappointedbytheP&GPartners.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(c)Notwithstandingtheforegoing,theprovisionsofthisArticleVwillnotentitleanyPersontoreceiveanyinformationfromanyCloroxPartnerintheeventandtotheextentthat:(i)suchinformationwouldbesubjecttoattorney-clientorotherlegally-recognizedprivilegeexceptforitsbeingprovidedtosuchPersonand(A)basedonthereasonableadviceofitscounseltheCloroxPartnerdeterminesthatsuchprivilegewouldnolongerbeavailableintheeventtheinformationwasdisclosedtosuchPersonand(B)theCloroxPartnerdesirestoretaintheavailabilityofsuchprivilegewithrespecttosuchinformation,(ii)suchinformationissubjecttoconfidentialityobligationsoftheCloroxPartnerstothirdparties,whichobligationsexistedpriortothedateofthisAgreementandwouldbebreachedbythedisclosuretosuchPersonor(iii)suchinformationisdeterminedbyCloroxreasonablyandingoodfaithasbeinginformationthatcouldbeusedbytheP&GPartnerstothecompetitivedisadvantageofanybusinessofoperationsofCloroxanditsSubsidiariesotherthantheGladGlobalBusiness.Notwithstandingtheforegoing,thePartiesacknowledgeandagreethattheyintendtominimizetheamountofinformationnotsharedbytheCloroxPartnerswiththeP&GPartnerswithrespecttotheGladGlobalBusiness.Accordingly,theCloroxPartnersagreetousetheir[***]effortstoidentifyandimplementappropriatemeanstosharesuchinformationwhileatthesametimeprotectingtheinterestsoftheJointVentureandtheCloroxPartners.

(d)TheBoardhas,subjecttothecontroloftheJVPartners,generalsupervision,directionandcontrolofthebusinessoftheJointVenture.TheBoardwillhavethegeneralpowersanddutiestypicallyvestedintheboardofdirectorsofacorporationandallotherpowersanddutiesovertheJointVentureanditsbusinessexceptasexpresslyprovidedelsewhereinthisAgreement,providedthatthepoweroftheBoardwillbenogreaterthanthepowersoftheboardofdirectorsorequivalentgoverningbodyofanyotherbusinessunitofClorox,andtheoperationsoftheGladBusinesswillremainsubjecttoinallrespects,andtheprovisionsofthisSection5.1willinnowayaffect,anyrequirementsforapprovaloftheboardofdirectorsofCloroxwithrespecttoanymatter.CertainspecificitemsthatwillbesubjecttoBoard-levelauthorizationareidentifiedinSections5.3,5.4and5.5hereof.

(e)TheJointVenturewillbemanagedintheUnitedStatesonaday-to-daybasisbyaGladLeadershipTeam(“GladLeadershipTeam”)thatwillconsistoftheexecutivemanagementteamfortheGladBusinessandwillreporttotheBoard.ThecompositionoftheGladLeadershipTeamwillconsistprimarilyofrepresentativesof[***].TheP&GPartners[***]GladLeadershipTeam[***]positiontobedeterminedbytheBoard,andsubjecttothe[***].Therepresentatives[***]ontheGladLeadershipTeamwill[***]willbeattributedtothe[***].

(f)ThepersonsdesignatedbytheP&GPartnersasBoardmembers,P&GObserversand[***]willallbeemployeesofP&GoritsSubsidiarieswhohavesufficientseniority,knowledgeandexperiencetocontributetothesuccessoftheGladBusiness.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(g)NomemberoftheBoardorP&GObserverwillreceiveanycompensationforservingasBoardmemberornon-votingobserverontheBoard,otherthanreimbursementforreasonableout-of-pocketexpensesfortraveltoandfrommeetingsoftheBoard,whichreimbursementwillbepaidbythePartyappointingsuchBoardmemberornon-votingobserver.

(h)Notwithstandinganythingtothecontrarycontainedherein,butsubjecttotheprovisionsofSection7.1hereof,allmattersrelatingtothepricingofintercompanytransfersandchargesbetweenoramonganyoftheCloroxPartnerswillbedecidedbytheCloroxPartners,intheirsolediscretion,andtheBoardwillhavenocontrolwhatsoeveroversuchmatters,providedthatsuchintercompanytransfersandchargesareconsistentwiththeJVAccountingPrinciples,thisAgreementandtheRelatedAgreementsandtheeffectsofallsuchintercompanytransfersandchargesonthecalculationofNetProfitsandNetLossoftheJointVentureareeliminatedtherefrominaccordancewiththeJVAccountingPrinciples.

(i)TheBoardwillhavetherighttoformoneormorecommitteesoftheBoardandtodelegateauthoritytosuchcommitteesinitsdiscretion,providedthattheformationofanycommittee,itssize,theidentityofitsmembers,andthescopeofauthoritytobedelegatedtoitwillallsubjecttotheunanimousapprovaloftheBoard.

Section5.2MeetingsoftheBoard.

(a)TheBoardwillmeetatleastsix(6)timesayearforthefirsttwoFiscalYearsoftheJointVentureandfour(4)timesannuallythereafter.RegularmeetingsoftheBoardwillbescheduledwithatleastfive(5)BusinessDaysnotice.SpecialmeetingsoftheBoardforanypurposemaybecalledatanytimebythepersonselectedtopresideatmeetingsoftheBoard,uponatleasttwo(2)BusinessDaysnoticeunlesswaivedbyeachmemberoftheBoard.NoticeofthetimeandplaceofanymeetingoftheBoardwillbegiventoeachBoardmember(i)personallycommunicatedtothembytelephone,andconfirmedinwritingbyfacsimileorelectronicmail,or(ii)communicatedbyFederalExpressorothercomparableovernightcourierservice(receiptrequested).

(b)MeetingsoftheBoardwillbeheldattheJointVenture’sofficesinOakland,California,unlesssomeotherplaceisdesignatedinthenoticeofthemeeting.AnymemberoftheBoardmayparticipateinameetingbyconferencetelephoneorsimilarmediumsolongasallmembersoftheBoardparticipatinginsuchmeetingcanhearoneanotherandanysuchmemberwillcounttowardsthedeterminationofthepresenceofaquorum.AccurateminutesofanymeetingoftheBoardwillbemaintainedbythepersondesignatedbytheBoardforthatpurpose.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(c)AquorumforanymeetingoftheBoardwillrequirethepresenceof(x)amajorityofthetotalnumberofincumbentmembersoftheBoardand(y)atleastonememberappointedbytheP&GPartners,whichmembermustbeavotingmember.AnyBoardmembermayappointanotherindividualtoactinhisorhersteadforaparticularBoardmeetingbyexecutingawrittenproxythatisdeliveredtotheBoardatthemeetingandfiledwiththerecordsoftheBoardwithrespecttosuchmeeting.AnyBoardmembermakingsuchanappointmentwillseekingoodfaithtoprovidethatthepersonappointedwillbeofcomparableseniorityand/orexperiencewithrespecttotheJointVenturetosuchBoardmember.ExceptasotherwisesetforthinthisAgreement,anactionordecisionoftheBoardwillrequiretheconsentorvoteofamajorityofitsmembers.ExceptasotherwiseprovidedinthisAgreementorbyapplicablelaw,theactionofamajorityofthemembersoftheBoardpresentatanymeetingatwhichthereisaquorum,whendulyassembled,isvalid.Ameetingatwhichaquorumisinitiallypresentmaycontinuetotransactbusiness,notwithstandingthewithdrawalofmembersoftheBoard,ifanyactiontakenisapprovedbyamajorityoftherequiredquorumforsuchmeeting.IfatanymeetingoftheBoardthathasbeendulycalledornoticed,noBoardmember(s)appointedbytheP&GPartnersarepresent,suchmeetingwillbeadjournedandreconvenedintwo(2)BusinessDays,unlesssuchadjournmenthasbeenwaivedbyeachofthemembersoftheBoard.NoticeoftherevisedmeetingdatewillbegiventoeachBoardmemberpursuanttotheforegoingprovisionsexcludingthenumberofdaysofadvancenotice.NotwithstandingtheotherprovisionsofthisSection5.2(c),intheeventthatnoBoardmember(s)appointedbytheP&GPartnersarepresentatsuchreconvenedmeeting,suchmeetingwillbedeemedtohaveaquorumifamajorityofthetotalnumberofBoardmembersispresent.MeetingsoftheBoardwillbedelayedonlyonceforlackofparticipationoftheBoardmember(s)appointedbytheP&GPartners.Forpurposesofclarification,allreferencestomember(s)appointedbyP&GPartnersaretoP&GPartners’votingmember(s)notBoardObservers.

(d)Withrespecttoameetingwhichhasnotbeendulycalledornoticedpursuanttotheforegoingprovisions,alltransactionscarriedoutatthemeetingareasvalidasiftheyhadbeencarriedoutatameetingregularlycalledandnoticedif:(i)allmembersoftheBoardarepresentatthemeeting,andsignawrittenconsenttotheholdingofsuchmeeting,(ii)amajorityofthemembersoftheBoardarepresentandifthosenotpresentsignawaiverofnoticeofsuchmeetingoraconsenttoholdingthemeetingoranapprovaloftheminutesthereof,whetherpriortooraftertheholdingofsuchmeeting,whichwaiver,consentorapprovalwillbefiledwiththeotherrecordsoftheJointVentureor(iii)allmembersoftheBoardattendameetingwithoutnoticeanddonotprotestpriortothemeetingoratitscommencementthatnoticewasnotgiventothem.

(e)AnyactionrequiredorpermittedtobetakenbytheBoardmaybetakenwithoutameetingandwillhavethesameforceandeffectasiftakenbyavoteofBoardatameetingproperlycalledandnotice,ifauthorizedbyawritingsignedindividuallyorcollectivelybyall,butnotlessthanall,themembersoftheBoard.SuchconsentwillbefiledwiththerecordsoftheJointVenture.

(f)AreasonablydetailedagendaforanymeetingoftheBoardwillbesuppliedtoeachmemberoftheBoardatthesametimenoticeofthemeetingisgiven,togetherwithotherappropriatedocumentationrelatingtoitemsonsuchagenda.AnymemberoftheBoardwishingtoplaceamatterontheagendaofanymeetingmaydosobycommunicatingwiththepersonselectedtopresideatmeetingsoftheBoard.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section5.3P&GVetoRights.

(a)NotwithstandinganythinginthisAgreementtothecontrary,duringtheTerm,noneofthefollowingactionswillbetakenbytheCloroxPartnersortheirSubsidiaries,regardlessofwhethersuchactionswillhavebeenapprovedbytheboardofdirectorsofCloroxoranyCloroxPartner,withouteither(x)thepriorwrittenconsentoftheP&GPartnersor(y)theapprovalofamajorityoftheBoardmembersappointedbytheP&GPartners:

(i)anyissuanceofanyJVInteresttoanyPersonotherthanasexpresslyprovidedinthisAgreement;

(ii)theincurrenceorassumptionofanyIndebtednesstobeattributedtotheJointVenture(otherthanParentLoansattributedtotheJointVenturepursuanttoSection2.6)thatwouldresultintheaggregateoutstandingIndebtednessattributedtotheJointVentureandtheGladLicensedBusinessatthetimesuchIndebtednessisincurredorassumed(otherthanParentLoansattributedtotheJointVenturepursuanttoSection2.6andAffiliateLoansattributedtotheGladLicensedBusiness)tobeinexcessof[***]$[***]percent([***]%)oftheannualnetsalesattributedtotheJointVentureandtheGladLicensedBusinessforthepriorfourFiscalQuarters;

(iii)anypurchaseorotheracquisitionofanybusiness,divisionorPersonthatwillbeattributedtotheJointVentureforconsideration(whichwillincludethepurchaseprice,plustheaggregateof(A)anyIndebtednessassumedand(B)anyLiabilitiesassumedthatinthegoodfaithestimationoftheBoardatthetimetherelevantacquisitionagreementisexecutedwillnotbesatisfiedfromcashflowoftheacquiredbusinessorassets)inexcessof[***]$[***]percent([***]%)oftheannualnetsalesattributedtotheJointVentureandtheGladLicensedBusinessduringthepriorfourFiscalQuarters;

(iv)subjecttotheprovisionsofSection7.5(c),anysale,transferorotherdispositioninanysingletransactionorseriesofrelatedtransactions(A)ofanybusiness,divisionorPersonattributedtotheJointVenture,or(B)otherthanintheordinarycourseoftheconductoftheGladBusinessofanyassetsattributedtotheJointVenture,whichassets(x)arenotobsolete,(y)areutilizedinamaterialmannerintheGladBusinessatthetimeofsuchsale,and(z)arenotbeingreplacedwithassetsofcomparableutilityorvaluetotheGladBusiness,providedthatineachcasesuchbusiness,division,Personorassetshaveavalueinexcessof[***]$[***]percent([***]%)oftheannualnetsalesattributedtotheJointVentureandtheGladLicensedBusinessduringthepriorfourFiscalQuarters,andprovidedfurtherthatthisSection5.3(a)(iv)willnotapplywithrespecttoanysaleofallorsubstantiallyallthebusiness,assetsandpropertiesattributedtotheJointVenture;

(v)exceptasprovidedinthisAgreementortheRelatedAgreements,anytransactionwithrespecttotheGladBusinessbetweenCloroxandanyAffiliateofCloroxunless(x)(A)suchtransactionis[***]orislessthan$[***]and(B)thetermsofsuchtransactiontobeattributedtotheJointVenturearenolessfavorablethanthosethatwouldbeobtainedinacomparablearm’slengthtransactionwithathirdpartythatisnotCloroxoranAffiliateofClorox(“Arm’sLengthTerms”),(y)anyeffectsofsuchtransactionthatwouldbeattributedtotheJointVenturewillbeeliminatedpursuanttotheJVAccountingPrinciplesor(z)suchtransactionisotherwiseprovidedforpursuanttotheJVAccountingPrinciples;

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(vi)anydistributionsmadetotheJVPartnerswithrespecttotheJVInterestsotherthanfromDistributableCashFlow;

(vii)anyinternalrestructuringofthemethodbywhichClorox’slegalownershipoftheGladBusinessisheldbyCloroxanditsSubsidiariesthat,basedonthefactsandcircumstancesknownatthetimesuchrestructuringisapproved,hasorwillhaveamaterialadverseeffectonthebusiness,properties,financialcondition,resultsofoperationsorprospectsoftheGladBusiness;

(viii)anychangesintheaccountingpoliciesoftheJointVenturesoastodifferfromtheJVAccountingPrinciples,exceptasrequiredbyGovernmentalAuthoritiesorexceptasrequiredtoconformtoageneralchangebeingmadebyCloroxtoitsaccountingpoliciesasineffectthroughoutitsbusinessesthat,basedonthefactsandcircumstancesknownatthetimesuchchangeisapproved,donotandwillnotadverselyaffecttherelativeeconomicinterestshereunderoftheP&GPartners,ontheonehand,andtheCloroxPartners,ontheotherhand;

(ix)theGladBusiness[***];

(x)anyterminationofany[***],anyfailuretorenewthetermofany[***]oranychangetothe[***]termsofany[***]ineachcasepriortotheearlierof(A)terminationof[***]and(B)any[***];and

(xi)anyterminationofany[***],anyfailuretorenewthetermofany[***]oranychangetothe[***]termsofany[***],ineachcasepriortotheearlierof(A)terminationofthe[***]and(B)any[***].

(b)IntheeventthattheBoarddesigneesoftheP&GPartnersfailtoapproveanyactionapprovedbyamajorityoftheBoardandtheJointVentureisprohibitedfromtakingsuchaction(a“P&GVeto”),theP&GPartnersandCloroxwillattempttoresolvesuchdisputebyimmediatelysubmittingitforresolutiontotherespectivechiefexecutiveofficersofCloroxandP&G.Thechiefexecutiveofficerswillnegotiateingoodfaithtoresolvethedisputeinatleastoneface-to-facemeetingtooccurwithinthirty(30)days(theprocessofsuchsubmissionandnegotiationisreferredtohereinas“Escalation”).IfthechiefexecutiveofficersofCloroxandP&Gareunabletoresolvethedisputewithinthirty(30)days,theJointVenturewillbeprohibitedfromtakingsuchactionandCloroxwillhavetheabilitytoexerciseitsCallRightpursuanttoSection6.5(b)(i),ifandonlytotheextentapplicable(suchthirty(30)dayperiod,the“ResolutionPeriod”).

Section5.4BusinessPlan,BudgetandReportstotheBoard.

(a)ThepreliminarybusinessplanfortheJointVenturehasbeenpresentedtotheP&GPartiesandagreeduponbytheParties.ThepreliminarybusinessplanwithrespecttotheuseoftheP&GParties’proprietaryForceflexandImpresstechnologies,whichtechnologiesarethesubjectoflicensesundertheP&GLicenseAgreement,isattachedasExhibitD.Allsubsequentbusinessplansaswellasthelong-termstrategicplanfortheJointVenturewillbesubmittedforapprovaltotheBoard,inaprocessthatwillbeconsistentwiththesubmissionandapprovalprocessofCloroxfortheboardofdirectorsofClorox.Thebusinessplanandthelong-termstrategicplanwillberegularlyreviewedbymanagement,andmaterialproposedrevisionstothethen-currentbusinessplanandlong-termstrategicplanwillbesubmittedtotheBoardforapproval.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(b)ThepreliminarybudgetfortheJointVentureisattachedasExhibitE.AllsubsequentbudgetsfortheJointVenturewillbesubmittedforapprovaltotheBoard,inaprocessthatwillbeconsistentwiththesubmissionandapprovalprocessofCloroxfortheboardofdirectorsofClorox.Thebudgetwillberegularlyreviewedbymanagement,andmaterialproposedrevisionstothethen-currentbudgetwillbesubmittedtotheBoardforapproval.

(c)TheBoardwilldeterminetheadditionalreportsandotherinformationabouttheJointVenturethatistobeprovidedtothemembersoftheBoardonascheduled,periodicbasis.

AdditionalinformationabouttheJointVenturewillbeprovidedtoindividualmembersoftheBoarduponreasonablerequest,providedthatitisunderstoodthatsuchrequestsshouldnotbeundulyburdensomeorotherwiseofsuchanatureastointerferewiththecustomaryoperationsoftheGladBusinessorcausetheGladBusinesstooperateotherthanintheordinarycourse.

Section5.5AdditionalItemsforBoardApproval.

(a)AnycandidatetobecomeamemberoftheGladLeadershipTeammustbesubmittedtoandapprovedbytheBoardpriortobecomingamemberofsuchGladLeadershipTeam.TheBoardwillhavetherighttomeetwithanysuchcandidatepriortoactingwithrespecttohimorher,andiftheBoarddeclinestodosothentheP&GPartnerswillhaveanopportunitytomeetwithsuchcandidatepriortotheBoardactingwithrespecttosuchcandidate.TheBoardmayalsodesignateotherkeyemployeepositionsintheGladBusinesswithrespecttowhichitmustapprovethecandidates,andwhichtheBoardwillhavetherighttointerviewpriortotheirappointment(andwhichtheP&GPartnerswillhaveanopportunitytomeetwithiftheBoarddeclines).

(b)AllnewSignificantContractstobeattributedtotheJointVentureinwhole,andtheportionsofanySignificantContractstobeattributedtotheJointVentureinpart,willbesubmittedtoandsubjecttotheapprovaloftheBoard,inaprocessthatwillbeconsistentwiththesubmissionandapprovalprocessofCloroxfortheboardofdirectorsofClorox.

(c)TheestablishmentofadirectpresenceorexclusivedistributorshiparrangementinanycountrywhereCloroxanditsAffiliatesdonotconductbusinessdirectlyorthroughanexclusivedistributorwithrespecttotheGladGlobalBusinessbrandsasoftheClosingwillbesubmittedtoandsubjecttotheapprovaloftheBoard,inaprocessthatwillbeconsistentwiththesubmissionandapprovalprocessofCloroxfortheboardofdirectorsofClorox.

(d)Any(i)assumptionorincurrenceofIndebtedness(otherthanParentLoans)inexcessof$[***]or(ii)purchaseorotheracquisitionandanysale,transferorotherdispositionofanybusiness,divisionorPersonthatwillbeattributedtotheGladBusinessthatwillnotbesubjecttothepriorconsentofP&GpursuanttoSections5.3(a)(ii),5.3(a)(iii)or5.3(a)(iv)hereofwillbesubmittedtoandsubjecttotheapprovaloftheBoard.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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ARTICLEVI

TRANSFERSOFINTEREST;TERMANDTERMINATION

Section6.1General;RestrictionsonTransfers.

(a)NoJVPartnermayTransferalloranypartofitsJVInterestsexcepttoaPermittedTransferee,orpursuanttoSection2.7hereof.Forpurposesofclarification,intheeventCloroxengagesinanyThird-PartySale,Cloroxwillassigntothetransferee,andthetransfereewillassume,thisAgreementaspartofsuchThird-PartySaleaswellasallRelatedAgreementsotherthanthoseRelatedAgreementsthatbytheirtermswillterminateinconnectionwithsuchThird-PartySale.AllTransfersofJVInterestswillbeeffectedbywrittennoticeofsuchTransfertotheJointVenture.Uponreceiptofsuchnotice,theJVInterestsoftheJVPartnerswillbemodifiedtoreflectanyTransfereffectedinaccordancewiththisAgreement.Notwithstandingtheforegoing,anysale,transferorassignmentofaJVInterestorthisAgreementtoaSubsidiaryofthetransferringPartywillnotrelievethetransferringPartyofitsobligationshereunder

(b)NoJVPartnerwillTransferalloranypartofitsJVInteresttoanyPerson(includinganyPermittedTransfereethatisnotalreadyboundbythetermsofthisAgreement)withoutsuchtransfereeexecutingandthetransferringPartydeliveringtotheBoardandanynon-transferringPartyawrittenagreementtobeboundbythetermsofthisAgreementandallRelatedAgreementsinformandsubstancereasonablysatisfactorytotheBoardandthenon-transferringParties.AnyTransferbyaJVPartnerofalloranypartofitsJVInterestmustbeincompliancewithallapplicablefederalandstatesecuritieslaws,andtheprovisionsofthisSection6.1(b)andtheotherprovisionsofthisArticleVI.

(c)AnyTransferorattemptedTransferbyaJVPartnerinviolationofthisSection6.1willbenullandvoidandofnoforceoreffectwhatever.EachJVPartnerwhoisatransferringPartyherebyfurtheragreestoholdtheJointVentureandeveryotherJVPartneranditsAffiliateswhollyandcompletelyharmlessfromanycost,Liability,ordamage(includingLiabilitiesforincometaxesandcostsofenforcingthisindemnity)incurredbyanyofsuchindemnifiedPersonsasaresultofaTransferoranattemptedTransferinviolationofthisAgreement.Fortheavoidanceofdoubt,theprovisionsofthisSection6.1donotlimitinanyrespectanyTransferbyanyCloroxPartnerofanybusiness,assetsorpropertiesoftheGladBusiness,includingwithoutlimitationaThirdPartySalepursuanttoSection6.7hereof;provided,suchCloroxPartnerhasassignedtothetransfereeandthetransfereehasassumedthisAgreementandallRelatedAgreementstotheextentrequiredbythetermsofSection6.1.

Section6.2EffectofTransfersonDistributionsamongJVPartners.

UpontheoccurrenceofaPermittedTransferofaJVInterestduringanyFiscalYear,NetProfits,NetLosses,eachitemthereof,andallotheritemsattributedtosuchJVInterestforsuchFiscalYearwillbedividedandallocatedbetweenthetransferorandthetransfereebytakingintoaccounttheirvaryinginterestsduringtheFiscalYearinaccordancewithCodeSection706(d),usinganyconventionspermittedbylawandselectedbytheBoard.ExceptasotherwiseprovidedinSection3.4(c)(v),alldistributionsonorbeforethedateofaPermittedTransferwillbemadetothetransferor,andalldistributionsthereafterwillbemadetothetransferee.Solelyforpurposesofmakingsuchallocationsanddistributions,aPermittedTransferwillberecognizedupontheBoard’sreceiptof(i)writtennoticestatingthedatesuchInterestwastransferredandsuchotherinformationastheBoardmayreasonablyrequireand(ii)thewrittenagreementtobeexecutedbythePermittedTransfereeagreeingtobeboundbythetermsofthisAgreementpursuanttotherequirementsofSection6.1hereof.TheBoardwillincurnoLiabilityformakingallocationsanddistributionsinaccordancewiththeprovisionsofthisSection6.2whetherornottheBoardhasknowledgeofanyTransferofownershipofanyJVInterest.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section6.3TermofJointVenture.

(a)ThetermoftheJointVenture(the“Term”)willcommenceattheClosingandwillexpireonthetwenty-yearanniversaryoftheClosingDate(the“InitialTerm”),unlessearlierterminatedpursuanttotheprovisionsofSections6.4,6.5,6.6or6.7hereof.EithertheP&GPartnersorCloroxmaydeliverwrittennoticetotheothernotlessthanfive(5)yearspriortotheendoftheInitialTermrequestingthattheTermbeextendedforanadditionalten(10)yearsaftertheendoftheInitialTerm.IfthePartyreceivingthenoticeagreestosuchextension,theTermwillterminateonthethirty-yearanniversaryoftheClosingDate,unlessearlierterminatedpursuanttotheprovisionsofSections6.4,6.5,6.6or6.7hereof.IfthePartyreceivingthenoticedoesnotagreetosuchextension,theTermwillautomaticallyterminateattheendoftheInitialTerm.TheexpirationoftheTermwillnotrelieveanyPartyfromanyliabilityitmayhavetoanyotherPartyarisingoutoforrelatingtoactsoromissionspriortosuchexpiration.

(b)TheprovisionsofSection6.3,7.2,7.3,7.4,9.1(b)and9.2,andArticlesXandXIshallsurviveanyterminationorexpiration,inwholeorinpart,ofthisAgreement.TheterminationorexpirationofthisAgreementwillnotrelieveeitherPartyofanyliabilityitmayhavetotheotherPartyarisingoutoforrelatingtoactsoromissionsoccurringpriortoexpirationortermination.

Section6.4P&GPutRights.

(a)TheP&GPartnerswillhavetherighttoselltoClorox,anduponexerciseofsuchrightClorox(ortheCloroxPartnerdesignatedbyClorox)willberequiredtopurchase,all(butnotlessthanall)oftheP&GPartners’JVInterests,includingtheP&GOption(ifthesaleistooccurduringtheOptionExercisePeriodandtheP&GOptionisnotyetexercised)(the“PutRight”)intheeventof(x)anyChangeofControlofCloroxassetforthinSection6.4(a)(i)belowor(y)thefailuretocurecertainbreachesbyCloroxPartnersassetforthinSection6.4(a)(ii)below.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(i)IntheeventaCloroxChangeofControloccursduringtheTerm,CloroxwillprovidetheP&GPartnerswithwrittennoticeoftheCloroxChangeofControl(a“ChangeofControlNotice”)within[***]aftertheclosingofthetransactionresultingintheCloroxChangeofControl.TheP&GPartnersmayirrevocablyexercisetheirPutRightinconnectionwithsuchCloroxChangeofControlbydeliveringwrittennoticeofsuchirrevocableexercisetoCloroxwithin[***]daysafterthereceiptoftheChangeofControlNotice.ThepurchasepricepayablebyCloroxtotheP&GPartnersforsuchJVInterestsandtheP&GOption(ifunexercisedbutexercisable)willbepaidtotheP&GPartnersandwillbecashequaltotheFairMarketValueoftheirrespectiveJVInterestsandtheP&GOption(ifunexercised,butexercisable)asofthedateofclosingofsuchCloroxChangeofControl,butwillbereducedbytheapplicableServicesTerminationAmount,ifany,pursuanttoSection6.8hereof.IftheP&GPartnersdonotdeliverawrittenexercisenoticetoCloroxwithinthe[***]periodreferredtoabove,thePutRightwillterminateandCloroxwillhavenofurtherobligationwithrespecttothePutRightwithrespecttosuchCloroxChangeofControl,providedthatsuchterminationwillnotinanywayaffectandtheP&GPartnerswillretainallrightspursuanttothisSection6.4withrespecttoanyfutureCloroxChangeofControl.

(ii)IntheeventaCloroxPartnerknowinglybreachesinanymaterialrespectamaterialobligationofaCloroxPartnerundertheprovisionsofthisAgreementoranyRelatedAgreementduringtheTerm,theP&GPartnerswillhavetherighttoprovideCloroxwithwrittennoticeofsuchbreach.TheCloroxPartnerswillthenhaveaperiodof[***]toattempttocuresuchbreach(whichperiodwillbesuspendedtotheextentCloroxiscontestingthebreachingoodfaith).IftheCloroxPartnersdonotcuresuchbreachinallmaterialrespectswithinsuch[***]period,theP&GPartnersandCloroxwillattempttoresolvesuchdisputebyEscalation.IfthechiefexecutiveofficersofCloroxandP&Gareunabletoresolvethedisputewithinthirty(30)days,P&GPartnersmayexerciseitsPutRightinconnectionwithsuchmaterialbreachwithin[***]aftertheendofsuchthirty-dayperiod.ThepurchasepricepayablebyCloroxtotheP&GPartnersforsuchJVInterestsandtheP&GOption(ifunexercised,butexercisable)willbecashequaltoFairMarketValueoftheP&GPartners’JVInterestsandtheP&GOption(ifunexercised,butexercisable)asofthedateof[***]withrespecttosuchbreach,providedthatforpurposesofthisSection6.4(a)(ii),theFairMarketValueofP&GPartners’initialOrdinaryJVInterestoftenpercent(10%)andClassCInterestduringtheperiodcommencingontheClosingDateandendingonthe[***]anniversaryoftheClosingDatewillbeanaggregateofnolessthan$140million.IftheP&GPartnersdonotdeliveranexercisenoticetoCloroxwithinthe[***]periodreferredtoabove,theirPutRightwillterminateandCloroxwillhavenofurtherobligationwithrespecttothePutRightwithrespecttosuchCloroxPartnerbreachandanyrelatedmattersofwhichtheP&GPartnershaveactualknowledge,providedthatsuchterminationwillnotinanywayaffectandtheP&GPartnerswillretainallrightspursuanttothisSection6.4withrespecttoanyfutureCloroxPartnerbreach.Inaddition,theP&GPartnerswillhavetheright,butnottheobligation,toterminatetheP&GServicesAgreementatthetimeofexerciseofitsPutRightpursuanttothisSection6.4(a)(ii).

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(b)TheclosingofanysaleofaJVInterestpursuanttoexercisebyP&GSubofaPutRightpursuanttothisSection6.4willtakeplaceattheprincipalofficeofCloroxonthe[***]afterfinaldeterminationofFairMarketValueoftheJVInterestbeingsold,providedthatallmaterialorders,consentsandapprovalsofGovernmentalAuthoritieslegallyrequiredfortheclosingofsuchsalewillhavebeenobtainedandbeineffect.Atsuchclosing,Clorox(ortheCloroxPartnerdesignatedbyClorox)willdeliverthepurchasepriceinimmediatelyavailablefundsintheappropriateamount(unlessotherconsiderationhasbeenmutuallyagreeduponbytheP&GPartnersandClorox).TheP&GPartnerswilldelivertheirJVIntereststoClorox(ortheCloroxPartnerdesignatedbyClorox)freeandclearofallLiens,andtheTermoftheJointVenturewillterminateasofsuchclosing.

Section6.5CloroxPurchaseofP&GJVInterest.

(a)IntheeventofanyterminationorexpirationoftheTerminaccordancewithSection6.3,Clorox(ortheCloroxPartnerdesignatedbyClorox)willpurchase,andtheP&GPartnerswillberequiredtoselltoCloroxorsuchCloroxPartner,alloftheJVInterestsheldbytheP&GPartners.IntheeventofapurchasebyCloroxpursuanttothisSection6.5(a)duetoaterminationoftheTerm,thepurchasepricefortheJVInterestsoftheP&GPartnerswillbetheFairMarketValueofsuchJVInterests,whichFairMarketValuewillbecalculatedasofthedateonwhichtheTermistoterminate.

(b)Cloroxwillalsohavetheright,butnottheobligation,topurchase,anduponexerciseofClorox’srighttheP&GPartnerswillberequiredtoselltoClorox(ortheCloroxPartnerdesignatedbyClorox),alloftheP&GPartners’JVInterests,includingtheP&GOptionifsuchexercisebyCloroxiswithintheOptionExercisePeriodandtheP&GOptionisnotyetexercised,(the“CallRight”)foracashpurchasepriceofFairMarketValueintheeventof(x)thefailuretoresolvecertainP&GVetoeswithintheResolutionPeriodassetforthinSection6.5(b)(i)belowor(y)thefailuretocurecertainbreachesbyP&GPartnersassetforthinSection6.5(b)(ii)below.

(i)IntheeventCloroxandtheP&GPartnersfailpursuanttoSection5.3(b)toresolveadisputewithrespecttoaP&GVetopursuantto(A)Section5.3(a)(iii),(B)Section5.3(a)(iv)or(C)Section5.3(a)(v)withrespecttoatransactionthatisonArm’sLengthTerms,CloroxwillhavetherighttoexerciseitsCallRightbyprovidingwrittennoticetotheP&GPartnersofsuchexercise(a“DeadlockNotice”)within[***]oftheendoftheResolutionPeriod,andifCloroxdoesnotprovidetheP&GPartnerswithaDeadlockNoticeinatimelymannerinaccordancewiththisSection6.5(b)(i),allrightsofCloroxtoexerciseitsCallRightwithrespecttosuchP&GVetowillterminate,providedthatsuchterminationwillnotinanywayaffectandCloroxwillretainallrightspursuanttothisSection6.5withrespecttoanyfutureP&GVeto.FairMarketValueoftheP&GPartners’JVInterestsandtheP&GOption(ifexercisablebutunexercised)forpurposesofapurchasepursuanttothisSection6.5(b)(i)willbedeterminedasofthedateofthe[***],providedthatforpurposesofthisSection6.5(b)(i),theFairMarketValueoftheP&GPartnersinitialOrdinaryJVInterestoftenpercent(10%)andClassCInterestduringtheperiodcommencingontheClosingDateandendingonthe[***]anniversaryoftheClosingDatewillbeanaggregateofnolessthan$140million.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(ii)IntheeventaP&GPartnerknowinglybreachesinanymaterialrespectamaterialobligationofaP&GPartnerundertheprovisionsofthisAgreementoranyRelatedAgreementduringtheTerm,CloroxwillhavetherighttoprovidetheP&GPartnerswithwrittennoticeofsuchbreach.TheP&GPartnerswillthenhaveaperiodof[***]toattempttocuresuchbreach(whichperiodwillbesuspendedtotheextenttheP&GPartnersarecontestingthebreachingoodfaith).IftheP&GPartnersdonotcuresuchbreachinallmaterialrespectswithinsuch[***]period,theP&GPartnersandCloroxwillattempttoresolvesuchdisputebyEscalation.IfthechiefexecutiveofficersofCloroxandtheP&GPartnersareunabletoresolvethedisputewithinthirty(30)days,CloroxmayexerciseitsCallRightinconnectionwithsuchmaterialbreachwithin[***]aftertheendofsuchthirty-dayperiod.ThepurchasepricepayablebyCloroxtotheP&GPartnersforsuchJVInterestsandtheP&GOption(ifunexercisedbutexercisable)willbecashequaltoFairMarketValue[***]withrespecttosuchbreach.IfCloroxdoesnotdeliveranexercisenoticetotheP&GPartnerswithinthe[***]periodreferredtoabove,itsCallRightwillterminateandtheP&GPartnerswillhavenofurtherobligationwithrespecttotheCallRightwithrespecttosuchP&GPartnerbreachandanyrelatedmattersofwhichCloroxhasactualknowledge,providedthatsuchterminationwillnotinanywayaffectandCloroxwillretainallrightspursuanttothisSection6.4withrespecttoanyfutureP&GPartnerbreach.Inaddition,Cloroxwillhavetheright,butnottheobligation,toterminatetheP&GServicesAgreementatthetimeofexerciseofitsCallRightpursuanttothisSection6.5(b)(ii).

(c)TheclosingofanysaleofaJVInterestandtheP&GOptionpursuanttoanexercisebyCloroxofaCallRightpursuanttothisSection6.5willtakeplaceattheprincipalofficeofCloroxonthe[***]afterfinaldeterminationofFairMarketValueoftheJVInterestbeingsold,providedthatallmaterialorders,consentsandapprovalsofGovernmentalAuthoritieslegallyrequiredfortheclosingofsuchsalewillhavebeenobtainedandbeineffect.Atsuchclosing,Clorox(ortheCloroxPartnerdesignatedbyClorox)willdeliverthepurchasepriceinimmediatelyavailablefundsintheappropriateamount(unlessotherconsiderationhasbeenmutuallyagreeduponbytheP&GPartnersandClorox).TheP&GPartnerswilldelivertheirJVIntereststoClorox(ortheCloroxPartnerdesignatedbyClorox)freeandclearofallLiens,andtheTermoftheJointVenturewillterminateasofsuchclosing.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section6.6Tag-AlongRights.

(a)Withrespecttoanyproposeddirectorindirectsale,transferorassignment(whichwillnotincludeabonafidepledgeofassets)byanyCloroxPartnerofallorsubstantiallyalloftheGladGlobalBusiness(otherthansuchasale,transferorassignmenttoaCloroxAffiliate),Cloroxwillhavetheobligation,andeachP&GPartnerwillhavetheright(the“Tag-AlongRight”),torequiretheproposedtransfereetopurchasefromeachP&GPartnerall,butnotlessthanall,itsJVInterests,andtheP&GOptioniftheTag-AlongRightisexercisedduringtheOptionExercisePeriodandtheP&GOptionisnotyetexercised,atapriceequaltoFairMarketValue,anduponthesameothertermsandconditionsastobegiventotheCloroxPartners,providedthatinordertobeentitledtoexercisetheirTag-AlongRight,theP&GPartnersmustagreetogivethesameindemnitiesastheCloroxPartnersagreetomakeinconnectionwiththeproposedsale,transferorassignment,whichobligationswillbebornebytheP&GPartnersonaproratabasisbasedontherelativeOrdinaryJVInterestsofalltheJVPartnersbutinthecaseofeachP&GPartnerwillinnoeventexceedtenpercent(10%)ofthesaleproceedsreceivedbysuchP&GPartner.Inaddition,thepurchasepricepayabletotheP&GPartnerswillbereducedbytheapplicableServicesTerminationAmount,ifany,pursuanttoSection6.8hereof.WithrespecttotheP&GOptioniftheP&GOptionisunexercisedbutexercisable,theP&GPartnerswillreceivefromtheproceedsotherwisepayabletotheCloroxPartnerstheamountbywhichtheFairMarketValueoftheOrdinaryJVInterestandClassAInterestsubjecttotheP&GOptionexceedstheOptionPrice.ThepurchasepricepayabletotheP&GPartnersfortheP&GOption(iftheP&GOptionisunexercised,butexercisable)willthereforebethegreaterof(i)zeroand(ii)anamountequalto(x)theFairMarketValueoftheOrdinaryJVInterestandClassAInteresttobeacquiredbytheP&GPartnersuponexerciseoftheP&GOptionminus(y)thethen-applicableOptionPrice(andtheamountofthepurchasepricepayabletotheCloroxPartieswillbereducedbyanequalamount).UponcompletionofsuchsaletheP&GOptionwillterminate.

(b)CloroxmustgivenoticetotheP&GPartnersofeachproposedsale,transferorassignment(whichwillnotincludeabonafidepledgeofassets)givingrisetoaTag-AlongRightatleast[***]priortotheproposedconsummationofsuchsale,transferorassignment,settingforththeJVInterestproposedtobesosold,transferredorassigned,thenameandaddressoftheproposedtransferee,theproposedamountofconsiderationthereforandtermsandconditionsagreedtobytheproposedtransferee.TheTag-AlongRightmustbeexercisedbyaP&GPartnerwithin[***]daysfollowingreceiptoftheCloroxnotice,bydeliveryofawrittenirrevocablenoticetoCloroxindicatingexerciseoftheTag-AlongRight.IftheproposedtransfereefailstocompleteitspurchasefromanyP&GPartnerthathasproperlyexerciseditstag-alongrights,thenCloroxwillnotbepermittedtomaketheproposedTransfer,andanysuchattemptedsale,transferorassignmentwillbevoidandofnoeffect.IfaP&GPartnerexercisesitsTag-AlongRights,theclosingofthepurchasewilltakeplaceconcurrentlywithandaspartoftheclosingofthesaleoftheGladGlobalBusiness,andtheTermoftheJointVenturewillterminateasofsuchclosing.

Section6.7DragAlongRights.

(a)IfatanytimeduringtheTerm,anyCloroxPartnerentersintoanagreementtoconsummateatransactionconstitutingadirectorindirectsaleofallorsubstantiallyalloftheGladGlobalBusiness(otherthanaCloroxChangeofControl)(a“Third-PartySale”),thenuponthewrittendemandofClorox,eachP&GPartnerwillagreetosellallitsJVInterests,andtheP&GOptioniftheThird-PartySaleisduringtheOptionExercisePeriodandtheP&GOptionisnotyetexercised,andatapriceequaltotheFairMarketValueforsuchJVInterests,anduponthesameothertermsandconditionsastobegiventotheCloroxPartners,providedthatinordertobeentitledtoexercisetheirrightsinconnectionwithaThirdPartySale,theP&GPartnersmustagreetogivethesameindemnitiesastheCloroxPartnersagreetomakeinconnectionwiththeproposedsale,transferorassignment,whichobligationswillbebornebytheP&GPartnersonaproratabasisbasedontherelativeOrdinaryJVInterestsofallJVPartnersbutinthecaseofeachP&GPartnerwillinnoeventexceedtenpercent(10%)ofthesaleproceedsreceivedbysuchP&GPartner.Notwithstandingtheforegoing,withrespecttoanyaThird-PartySalethatoccurspriorto[***]anniversaryoftheClosingDate,thepurchasepricetobepaidtotheP&GPartnersinsuchThird-PartySaleforP&G’sinitialOrdinaryJVInterestoftenpercent(10%)andClassCInterestwillbeanaggregateofnolessthan$140million.WithrespecttotheP&GOptioniftheP&GOptionisunexercisedbutexercisable,theP&GPartnerswillreceivefromtheproceedsotherwisepayabletotheCloroxPartnerstheamountbywhichtheFairMarketValueoftheOrdinaryJVInterestandClassAInterestsubjecttotheP&GOptionexceedstheOptionPrice.ThepurchasepricepayabletotheP&GPartnersfortheP&GOption(iftheP&GOptionisunexercised,butexercisable)willthereforebethegreaterof(i)zeroand(ii)anamountequalto(x)theFairMarketValueoftheOrdinaryJVInterestandClassAInteresttobeacquiredbyP&GuponexerciseoftheP&GOptionminus(y)thethen-applicableOptionPrice(andtheamountofthepurchasepricepayabletotheCloroxPartieswillbereducedbyanequalamount).UponcompletionofsuchsaletheP&GOptionwillterminate.CloroxagreesitwillnotenterintoaThird-PartySale,unlessotherwiseagreedbytheP&GPartners,withoutobtaininganopinionfromanationally-recognizedinvestmentbankingfirmselectedbyClorox,whichinvestmentbankingfirmisnototherwiseentitledtoanyfinancialadvisor’sorsimilarfeeinconnectionwiththeThird-PartySale,[***].

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(b)CloroxmayexerciseitsrightsinconnectionwithaThird-PartySaleatanytimeduringtheTermuponwrittennoticetotheP&GPartners,settingforththenameandaddressoftheproposedtransferee,theproposedamountofconsiderationthereforandtermsandconditionsagreedtobytheproposedtransferee,providedthatCloroxwilluse[***]effortstogivenoticetotheP&GPartnersatleast[***]priortotheproposedconsummationofanysuchThird-PartySale.EachP&GPartnerwillconsenttoandraisenoobjectionstotheproposedtransactionandwilltakeallotheractionsnecessaryordesirabletocausetheconsummationofsuchThird-PartySaleonthetermsproposedbyClorox.IfCloroxexercisesitsrightstocauseasalepursuanttothisSection6.7,theclosingofthepurchasewilltakeplaceconcurrentlywithandaspartoftheclosingofthesaleoftheGladGlobalBusiness,andtheTermoftheJointVenturewillterminateasofsuchclosing.IftheproposedtransfereefailstocompleteitspurchasefromanyP&GPartnerattheclosingofanyThird-PartySale,thenCloroxwillnotbepermittedtomaketheproposedThird-PartySale,andanysuchattemptedsale,transferorassignmentwillbevoidandofnoeffect.

(c)Cloroxfurtheragreesthatintheeventthatit[***]ThirdPartySale,itwillnotifytheP&GPartnersandiftheP&GPartnersnotifiesCloroxinwritingwithin[***]ofreceiptofsuchnoticethatP&Ghasmadeagoodfaithdeterminationtopursue[***],CloroxandP&Gwillnegotiate[***]dayswithrespectto[***]byP&Gofthe[***]ontermssatisfactorytoeachofCloroxandP&G,providedthattheprovisionsofthisSection6.7(c)willinnowayobligateCloroxtonotifyornegotiatewithP&GintheeventCloroxreceivesa[***]foraThirdPartySale,andprovidedfurtherthatitisunderstoodthatintheeventP&GandCloroxdonotenterintoabindingagreementwithrespecttosuchapurchaseontermsandconditionssatisfactorytoeachPartyinitssolediscretionwithinsuch[***]dayperiod,Cloroxwillhavetherightthereafterto[***]intoaThirdPartySalewithanyotherPerson.

Section6.8ServicesTerminationAmount.

(a)IntheeventtheP&GServicesAgreementisterminatedbyP&GpursuanttoSection8.2(b)oftheP&GServicesAgreementinconnectionwithanexercisebyP&GPartnersoftheirPutRightpursuanttoSection6.4(a)(i)hereofortheirTag-AlongRightpursuanttoSection6.6hereof,theaggregatepurchasepricepayabletotheP&GPartnerswithrespecttotheirJVInterestspursuanttosuchSections6.4(a)and6.6,asapplicable,willbereducedasfollows:

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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DateofP&GNoticeofTermination PurchasePriceReductionOntheClosingDate $[***]Ontheone-yearanniversaryoftheClosingDate $[***]Onthetwo-yearanniversaryoftheClosingDate $[***]Onthethree-yearanniversaryoftheClosingDate $[***]Onthefour-yearanniversaryoftheClosingDate $[***]Onthefive-yearanniversaryoftheClosingDate $[***]Onthesix-yearanniversaryoftheClosingDate $[***]Ontheseven-yearanniversaryoftheClosingDate $[***]Ontheeight-yearanniversaryoftheClosingDate $[***]Onthenine-yearanniversaryoftheClosingDate $[***]Onandaftertheten-yearanniversaryoftheClosingDate [***]

TotheextentthatthedateoftheP&Gnoticeofterminationisdeliveredotherthanononeoftheanniversarydatereferencedabove,thepurchasepricereductionwillequalthesumofthepurchasepricereductionontheimmediatelysucceedinganniversarydatereferencedaboveplustheproductof(i)thenumberofdaysuntiltheimmediatelysucceedinganniversarydatedividedby365and(ii)thepurchasepricereductionamountontheimmediatelyprecedinganniversarydateminusthepurchasepricereductionamountontheimmediatelysucceedinganniversarydate.

ARTICLEVII

CERTAINAGREEMENTS

Section7.1Personnel;ProvisionofServices.

(a)DuringtheTerm,theCloroxPartieswillmakecertaincorporateservicesandemployeesavailabletoprovideservicestotheGladBusinessandtheGladLicensedBusinessontermsandconditionsasdetailedonExhibitF(suchservices,the“CloroxServices”).ThecostoftheCloroxServiceswithrespecttotheGladBusinessandtheGladLicensedBusinesswillbeattributedtotheJointVentureassetforthonsuchExhibitF,whichExhibitFwillbeconsistentwiththeJVAccountingPrinciples.ExhibitFalsosetsforthprovisionsprovidingforthemodificationorterminationoftheCloroxServices.AllcostsandexpensesthatwillotherwisebeattributedtotheJointVentureortheGladLicensedBusinesswithrespecttoemployeesofCloroxortheCloroxPartieswillbeattributedsolelyinaccordancewiththeJVAccountingPrinciples.UndernocircumstanceswilltheCloroxServicesbeconsideredfortaxpurposestobegiveninexchangeforanyportionoftheCloroxParties’JVInterest.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(b)DuringtheTerm,P&GwillmakecertainservicesandemployeesavailabletoprovideservicestotheGladBusinessandtheGladLicensedBusinessontermsandconditionsasprovidedintheP&GServicesAgreementattachedasExhibitBhereto.Inaddition,P&GwillhavetherighttoproposethatadditionalemployeesprovideservicestotheGladBusinessandtheGladLicensedBusinessfromtimetotimeinbusinessfunctionsinwhichP&GthinkssuchemployeeswouldbeofbenefittotheGladBusinessortheGladLicensedBusiness,asthecasemaybe.AnysuchproposalsbyP&GwithrespecttotheGladBusinesswillbereviewedbytheGladLeadershipTeamandtheBoard,andmustbeapprovedbytheBoardpriortobeingimplemented.AnysuchproposalsbyP&GwithrespecttotheGladLicensedBusinesswillbereviewedbyTheGladProductsCompanyandtheInternationalAffiliateconductingtherelevantGladLocalBusiness.AnysuchemployeeswillbeprovidedtotheGladBusinessortheGladLicensedBusiness,asthecasemaybe,attheiractualcosttoP&GanditsSubsidiaries,whichcostwillbeattributedtotheJointVentureinamannerconsistentwiththeJVAccountingPrinciples.

Section7.2Non-Competition.

(a)InordertofurtherthebusinessoftheJointVentureandtoprotecttheIntellectualPropertyandothercontributionsofthePartiestotheJointVenture,eachofCloroxandP&GagreesthatduringtheTerm,andP&Gagreesthatfor[***]thereafter(unlessotherwiseprovidedherein),itwillnot,anditwillcauseitsSubsidiariesnotto,directlyorindirectlyconduct,engagein,manage,own,operate,investinorlicensetherighttouseanytrademark,tradenameorSpecificTechnologyforuseinconnectionwith,anyCompetingBusinessanywhereintheworldotherthanthroughtheJointVentureandtheGladGlobalBusiness.

(b)Notwithstandingtheforegoing,theprovisionsofthisSection7.2willnotprohibit,restrictorpreventClorox,P&GortheirrespectiveSubsidiariesfrom:

(i)engagingina[***]solongastheaggregaterevenuestoCloroxanditsSubsidiariesorP&GanditsSubsidiaries,asapplicable,fromallsuch[***],

(ii)acquiringnotmorethan[***]percent([***]%)ofanyclassofpubliclytradedequitysecuritiesofanyPerson,

(iii)acquiring[***]percent([***]%)ormoreofanyclassofcapitalstockofanyPersonthatdirectlyorindirectlythroughoneormoreSubsidiariesorotherwisehasa[***]operationsaslongas(x)such[***]percent([***]%)ofsuchacquiredPerson’s[***]acquisitionand(y)theportionofsuchPerson’sbusinessthatengagesinthe[***]issoldordisposedofnolaterthan[***]afterthe[***]byClorox,P&GortheirrespectiveSubsidiaries(asapplicable),

(iv)investinginanyPerson[***]operationsaslongas(w)such[***]percent([***]%)ofsuchacquiredPerson’s[***]acquisition,(x)suchinvestment[***]percent([***]%)ofany[***]interestsofsuchPerson,(y)theinvestordoesnot,directlyorindirectly,directorcausethedirectionof,orparticipatein,the[***]ofsuchPerson,and(z)thePersonthatdirectlyorindirectly[***]anditsSubsidiarieswill[***](A)anytrademarkortradenameoftheinvestororanyoftheinvestor’sAffiliates[***]or(B)any[***]owned,licensedorotherwiseheldbytheinvestororanyoftheinvestor’sAffiliates,

(v)withrespectto[***]withrespecttowhich(A)thelicenseofanyP&GTechnologyhasterminatedpursuanttoSection7.1oftheP&GLicenseAgreementand(B)theGladGlobalBusinessdoesnotconductanybusinessinsuchcountryorlicenseanythirdpartytoconductsuchbusiness,

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(vi)[***]if(A)thelicenseofanyP&GTechnologyforuse[***]hasterminatedpursuanttoSection7.1oftheP&GLicenseAgreementand(B)theJointVenture[***]anybusinessinthe[***]orlicenseanythirdparty[***]suchbusiness,

(vii)[***]directlyorindirectly[***]or[***]anyproductcurrently[***]or[***]by[***](“ExistingProduct”)whichExistingProductwouldbedeemed[***],or

(viii)[***],co-marketingproductsofP&GoritsSubsidiariesthatare[***]withproductsofathirdpartyCompetingBusinessthatare[***].

(c)AsusedinthisSection7.2,“CompetingBusiness”meansthe[***]bags,wraps,strawsorcoveredcontainers[***]butexcluding[***].

(d)TherestrictionscontainedinthisSection7.2willterminatewithrespecttoP&GanditsSubsidiariesintheeventofanexercisebyP&GofitsPutRightpursuanttoSection6.4(a)(ii)hereof.TheexpirationorterminationofthisSection7.2willnotaffectanyoftheParties’rightsundertheP&GLicenseAgreement.

(e)InordertofurtherthebusinessoftheJointVentureandtoprotecttheIntellectualPropertyandothercontributionsofthePartiestotheJointVenture,duringtheTermofthisAgreementandfor[***],P&G[***].Forpurposesofclarification,P&Gwillnotbedeemedtobeinbreachhereofifanyproductsbasedon[***]byacustomerorbroker(orasubsequentcustomerorbroker)[***],solongasP&GanditsSubsidiaries[***].NothinghereinwillpreventP&GoritsSubsidiariesfromsellingtoanythirdparty[***](exceptassetforthintheimmediatelyprecedingtwosentences).

Section7.3Confidentiality;Non-Disclosure.

(a)EachofCloroxandP&Gwill,andwillcausetheirrespectiveSubsidiaries,directors,officers,employeesandanyotherPersontowhomsuchPartydisclosesinformationwithrespecttotheJointVenture,toholdinconfidencealldocumentsfurnishedtoit,byoronbehalfoftheotherPartyinconnectionwiththetransactionscontemplatedbythisAgreement.ForpurposesofthisSection7.3,referencestoinformationofaPartyortodisclosureofinformationbyortoaPartyshallineachcaseincludeinformationof,disclosurebyanddisclosuretoAffiliatesofsuchParty.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(b)DuringtheTerm,CloroxandP&GandtheirrespectiveSubsidiaries,directors,officers,employeesandotherrepresentativeswillbegivenaccesstonon-public,proprietaryinformationthatrelatestotheother’spast,present,andfutureresearch,development,businessactivities,products,services,andtechnicalknowledge,aswellasnon-publicinformationrelatingtotheGladGlobalBusinessandtheJointVenture,includingwithoutlimitationtheinformationprovidedwithrespecttotheGladGlobalBusinessandtheJointVenturetotheBoard,themembersoftheGladLeadershipTeam,andtheP&GObserversandthefinancialandotherinformationmadeavailabletothePartiespursuanttoSections7.9and9.1hereof(collectively,“ConfidentialInformation”).ThePartiesacknowledgethatcertainoftheConfidentialInformationcouldbeusedbyonePartytothecompetitivedisadvantageofthebusinessoroperationsoftheotherPartyunrelatedtotheJointVentureortheGladGlobalBusiness,andthereforeagreeasfollowswithrespecttoalltheConfidentialInformation:

(i)theConfidentialInformationofthedisclosingPartymaybeusedbythereceivingPartyonlyinconnectionwiththeJointVentureandtheGladGlobalBusiness;

(ii)eachPartyagreestoprotect,andtocausetheirrespectiveSubsidiaries,directors,officers,employeesandanyotherPersontowhomsuchPartydisclosesConfidentialInformationoftheotherParty,toprotecttheconfidentialityoftheConfidentialInformationoftheotherinthesamemannerthatitprotectstheconfidentialityofitsownproprietaryandconfidentialinformationoflikekind,butinnoeventwilleitherPartyexerciselessthanreasonablecareinprotectingsuchConfidentialInformation;

(iii)accesstoanyConfidentialInformationoftheotherPartywillberestrictedto(A)themembersoftheBoardand(B)theP&GObservers,membersoftheGladLeadershipTeam,andthoseotheremployeesandotherpersonnelofthePartiesthat(x)aremadeavailabletoperformserviceswithrespecttotheJointVentureortheGladLicensedBusinesspursuanttoSection7.1asprovidedtherein,or(y)otherwiseneedtoknowsuchConfidentialInformationforpurposesofconductingthebusinessoftheJointVentureortheGladLicensedBusinessorimplementingthisAgreementoranyRelatedAgreement(collectively,“AuthorizedPersons”).EachPartywillcausetheAuthorizedPersonsofsuchPartynottodiscloseanyConfidentialInformationtoanyotherPersonwhoisnotanAuthorizedPerson.EachPartywillestablishinternalethicalwallsandotherpoliciesandproceduresreasonablysatisfactorytotheotherPartytopreventthedisclosureofConfidentialInformationoftheotherPartyotherthantoAuthorizedPersonsandotherthanforthepurposesofprovidingservicestoorotherwiseconductingthebusinessoftheJointVentureorimplementingthisAgreementoranyRelatedAgreement;

(iv)allConfidentialInformationmadeavailablehereunder,includingcopiesthereof,willbereturnedordestroyeduponthefirsttooccurof(A)theterminationoftheJointVentureor(B)anyrequestbythedisclosingParty,unlessthereceivingPartyisotherwiseallowedtoretainsuchConfidentialInformation.EitherPartymayretain,subjecttothetermsofthisSection7.3,copiesoftheother’sConfidentialInformationrequiredforcompliancewithrecordkeepingorqualityassurancerequirementsorotherapplicablelegalrequirements;and

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(v)nothinginthisAgreementwillprohibitorlimitClorox’sorP&G’s(ortheirSubsidiaries’)useofinformation(including,butnotlimitedto,ideas,concepts,know-how,techniques,andmethodologies)(A)previouslyknowntoitwithoutanobligationofconfidence,(B)independentlydevelopedbyorforit,(C)acquiredbyitfromathirdpartywhichisnot,toitsknowledge,underanobligationofconfidencewithrespecttosuchinformation,or(D)whichisorbecomespubliclyavailablethroughnobreachofthisAgreement.Foravoidanceofdoubt,thisSection7.3doesnotlimitthedisclosurebytheCloroxPartiesofinformationwithrespecttotheGladGlobalBusinesstoCloroxanditsSubsidiariesintheeventsuchinformationdoesnotincludeanyConfidentialInformationdisclosedbytheP&GParties.

(c)EachPartyfurtheracknowledgeandagreethatitispossiblethatcertainusesofitsownConfidentialInformationcouldbedetrimentaltotheJointVentureortheGladGlobalBusiness,andeachPartywilluse[***]effortstoavoidanysuchdetrimentaluse.

(d)NotwithstandingtheprovisionsofthisSection7.3,thePartiesagreethateachoftheotherPartiesmaydiscloseConfidentialInformationtooneormorethirdpartiesinaduediligenceinvestigationbeingconductedbysuchthirdpartyinconnectionwithaThirdPartySaleoratransactionthatwouldresultinaCloroxChangeofControl,inthecaseoftheCloroxPartners,oratransactionthatwouldresultinaP&GChangeofControl,inthecaseoftheP&GPartners.PriortoanydisclosureofConfidentialInformationpursuanttothisSection7.3(d),thethirdpartytowhomsuchinformationistobedisclosedmusthaveagreedtokeepinconfidenceallConfidentialInformationtobedisclosedtosuchthirdparty,andthePartyheretodisclosingsuchConfidentialInformationwillberesponsibleforanydisclosureoftheConfidentialInformationbysuchthirdparty.

Section7.4Non-Solicitation.

EachofCloroxandP&GagreesthatthesolicitationforemploymentbyitoritsSubsidiariesofemployeesoftheotherPartywhomthesolicitingPartybecomesawareofasaresultoftheJointVentureortheGladLicensedBusinesswouldhaveanadverseimpactontheParties.EachofCloroxandP&GagreesthatduringtheTermandfor[***]thereafteritwill,anditwillcauseitsSubsidiariesto,take[***]stepstopreventitsemployeesfrommakingsuchsolicitations;touse[***]effortstocauseitselfanditsSubsidiariestoenforcesuchprohibition;and,totheextentthatitbecomesawareofanysuchsolicitationoccurringwithinitselforanyofitsSubsidiaries,totake[***]actiontocausesuchsolicitationtoimmediatelycease.Intheeventofanybreachofthesenon-solicitationobligations,thePartiesagreetoconductgoodfaithdiscussionsandnegotiationstodetermineamutuallyacceptablemeansofaddressingsuchbreach,providedthatinnoeventwilltherebeanypenaltyforanyinadvertentbreachofthisprovisionbyanyParty.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section7.5AgreementtoCooperate;FurtherAssurances;OtherMatters.

(a)SubjecttothetermsandconditionsofthisAgreement,eachofthePartieswilluseallreasonableeffortstotake,orcausetobetaken,allactionsandtodo,orcausetobedone,allthingsnecessary,properoradvisableunderapplicablelawsandregulationstoconsummateandmakeeffectivethetransactionscontemplatedbythisAgreement,includingprovidinginformationandusingreasonableeffortstoobtainallnecessaryorappropriatewaivers,consentsandapprovals,andeffectingallnecessaryregistrationsandfilings,andwillactivelytakeallreasonablestepstopursuesuchwaivers,consentsandapprovalsforaperiodnottoexceedthree(3)months,afterwhichperiodeitherCloroxorP&GwillhavetherighttoterminatethisAgreementifsuchwaivers,consentsandapprovalshavenotbeenreceivedsuchthattheconditiontoclosingsetforthinSection8.1(b)hasnotbeensatisfiedoriftheClosinghasnototherwiseoccurred.ThePartieswilltimelyandpromptlymakeallfilingswhichmayberequiredbyeachoftheminconnectionwiththeconsummationofthetransactionscontemplatedherebyundertheHart-Scott-RodinoAntitrustImprovementsactof1976,asamended,andtherulesandregulationsthereunder(the“HSRAct”)andanysimilarforeignlegislation.EachPartywillfurnishtotheothersuchnecessaryinformationandassistanceassuchPartymayreasonablyrequestinconnectionwiththepreparationofanynecessaryfilingsorsubmissionsbyittoanyU.S.orforeigngovernmentalagency,includinganyfilingsnecessaryundertheprovisionsoftheHSRAct.NotwithstandinganythingtothecontraryinthisAgreement,noPartynoranyoftheirAffiliateswillberequiredtomakeanydisposition,includinganydispositionof,oranyagreementtoholdseparate,anySubsidiary,assetorbusiness,andnoPartynoranyoftheirAffiliateswillberequiredtocomplywithanyconditionorundertakingortakeanyactionwhich,individuallyorintheaggregate,wouldmateriallyadverselyaffecttheeconomicbenefitstosuchPartyofthetransactionscontemplatedherebyandbytheRelatedAgreements,takenasawholeoradverselyaffectanyotherbusinessofsuchPartyoritsAffiliates.IncaseatanytimeaftertheClosingDateanyfurtheractionisnecessaryordesirabletocarryoutthepurposesofthisAgreement,theproperofficersanddirectorsofthePartiesandtheirrespectiveAffiliateswillexecutesuchfurtherdocuments(includingassignments,acknowledgmentsandconsentsandotherinstrumentsoftransfer)andwilltakesuchfurtheractionaswillbenecessaryordesirabletoeffectsuchtransferandtootherwisecarryoutthepurposesofthisAgreement,ineachcasetotheextentnotinconsistentwithapplicablelaw.

(b)P&Gwillhavetheright[***]year,uponreasonablenoticetoCloroxtohaveanindependentpublicaccountingfirmreviewandauditthatportionofthebooks,recordsandaccountsoftheGladBusinesswithrespecttothosetransactionsattributedtotheGladBusinessthatarebetweenCloroxandanyAffiliateofCloroxforwhichtheconsentofP&GisnotsoughtpursuanttoSection5.3(a)(v)byreasonofsuchtransactionsbeingwithinthescopeofSection5.3(a)(v)(x).P&GagreestocauseanyreviewconductedpursuanttothisSection7.5(b)tobeconductedinamannersoasnottounreasonablyinterferewiththenormalbusinessoperationsoftheGladBusiness.

(c)IntheeventtheCloroxPartnersoranyoftheirSubsidiarieswishto[***]ofanybusiness,division,PersonorassetforwhichtransactiontheconsentoftheP&GPartnersisrequiredpursuantto[***],CloroxwillnotifytheP&GPartnersandiftheP&GPartnersnotifiesCloroxinwritingwithin[***]ofreceiptofsuchnoticethattheP&GPartnershasmadea[***]topursuea[***]business,division,Personorasset,CloroxandtheP&GPartnerswillnegotiate[***]foraperiodnottoexceed[***]withrespectto[***]bytheP&GPartnersofsuchbusiness,division,Personorasset,onterms[***]CloroxandtheP&GPartners,providedthatitisunderstoodthatintheeventtheP&GPartnersandCloroxdonotenterintoabindingagreementwithrespectto[***]toeachPartyin[***]withinsuch[***]dayperiod,Cloroxwillhavetherightthereafterto[***]andenterintoa[***]ofsuchbusiness,division,PersonorassetwithanyotherPerson.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(d)IntheeventofaThird-PartySalebyClorox,CloroxwilldeterminetheactuarialliabilitieswithrespecttothepensionsofanydefinedbenefitpensionplansmaintainedbyCloroxoranyAffiliatewhicharesubjecttothefundingrequirementsofSection412oftheCodeinwhichpersonnelengagedintheGladGlobalBusinessatthetimeoftheproposedsaleareparticipating(the“DefinedBenefitPlans”),basedonthesameactuarialassumptionsthatCloroxusestofundtheDefinedBenefitPlansovertime.CloroxwilldeterminetheprorataportionofthoseactuarialliabilitiesattributabletoGladGlobalBusinesspersonnelwhowillbecomeemployeesofthepurchaserinconnectionwiththeproposedsale(the“ProRataPortion”)assumedascomparedtothetotalactuarialliabilitiesfortheDefinedBenefitPlans.Cloroxwillproposethatthepurchaseracceptaspin-offoftheProRataPortiontoatax-qualifieddefinedbenefitpensionplanmaintainedbythepurchaserforitsownemployees(a“PurchaserPlan”)tosuchassetsforthebenefitoftheGladGlobalBusinesspersonnelwhobecomeemployeesofthepurchaserinconnectionwiththeproposedsale.TotheextentthepurchasernegotiatesatransactioninwhichanamountdifferentfromtheProRataPortionisspunofffromtheDefinedBenefitPlanstothePurchaserPlanthen(i)ifthepurchaseracceptsanamountlessthantheProRataPortion,P&GSubwillreceiveanamountequalto(A)itsOrdinaryJVInterestpercentagemultipliedby(B)thedifferencebetweentheProRataPortionandtheactualamountacceptedbythepurchaserand(ii)ifthepurchaseracquiresmorethantheProRataPortion,P&GSub’spurchasepricereceivedforitsinterestintheJointVenturewillbedecreasedbyanamountequalto(A)itsOrdinaryJVInterestpercentagemultipliedby(B)thedifferencebetweentheamountproposedbyCloroxinaccordancewiththeimmediatelyprecedingsentenceandtheactualamountacceptedbythepurchaser.Withrespecttoanypost-retireehealthcarebenefitsnotassumedbythethirdpartypurchaser,theJVPartnerswilldividethatexpensebetweenthem,basedontheirproportionateshareoftheactuarialliabilitieswithrespecttosuchbenefitprogramscalculatedonthebasisoftheirrelativeOrdinaryJVInterests.

(e)PriortotheClosing,theCloroxPartieswilldelivertotheP&GPartiesasupplementtoSchedules2.2(a)(i)and2.2(a)(iii)settingforththeamountsoftheeliminationsandadditionsreferencedtherein(the“SupplementalSchedule”).

Section7.6PublicStatements.

BeforeanyPartyoranyAffiliateofsuchPartywillreleaseanyinformationconcerningthisAgreementorthematterscontemplatedherebywhichisintendedforormayresultinpublicdisseminationthereof,theywillcooperatewiththeotherParties,willfurnishdraftsofalldocumentsorproposedoralstatementstotheotherParties,providetheotherPartiestheopportunitytoreviewandcommentuponanysuchdocumentsorstatementsandwillnotreleaseorpermitreleaseofanysuchinformationwithouttheconsentoftheotherParties,excepttotheextentrequiredbyapplicablelawortherulesofanysecuritiesexchangeorautomatedquotationsystemonwhichitssecuritiesorthoseofanyofitsAffiliatesaretraded.

Section7.7ConductofBusiness.

(a)TheCloroxPartiesagreethatpriortotheClosingDate,withoutthepriorwrittenconsentoftheP&GPartners,whichconsentwillnotbeunreasonablywithheld,asmaybeexpresslypermittedorcontemplatedbythisAgreementorasmaybesetforthinSection7.7oftheCloroxDisclosureSchedulehereto,theCloroxPartieswillcausetheGladGlobalBusiness:

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(i)tobeconductedintheusual,regularandordinarycourseofbusinessconsistentwithpastpractice,andwilluse[***]effortstopreserveintacttheGladGlobalBusiness,keepavailabletheservicesoftheiremployeesandpreservetheirrelationshipswithcustomers,suppliers,licensees,licensors,distributors,agentsandothershavingbusinessdealingswiththeGladGlobalBusiness;

(ii)to(A)maintainitsinventoryofsupplies,partsandothermaterialsandkeepitsbooksofaccount,recordsandfiles,ineachcaseintheordinarycourseofbusinessconsistentwithpastpractice,(B)maintainitspromotionalactivitiesandexpendituresintheordinarycourseofbusinessconsistentwithpastpracticeand(C)maintaininfullforceandeffectpropertydamage,liabilityandotherinsurancewithrespecttotheGladGlobalBusinessanditsassetsandpropertiesprovidingcoverageagainstsuchrisksandinatleasttheamountsasprovidedbytheinsurancepoliciescurrentlymaintainedbytheCloroxPartieswithrespecttotheGladGlobalBusinesstotheextentreasonablyavailable;

(iii)nottosell,transferorotherwisedisposeofanybusiness,assets,rightsorpropertiesoftheGladGlobalBusinessotherthan(A)salesofobsoleteorworn-outequipmentorotherassetsnolongerusedintheGladGlobalBusinessnotexceedingavalueinexcessof$[***]individuallyor$[***]intheaggregate,(B)salesofinventoryintheordinarycourseofbusiness,(C)sales,transfersorotherdispositionsofassetsorpropertiesthatwillbereplacedpriortotheClosingwithassetsorpropertiesofacomparablevalueorutilitythatwillbeattributedtotheGladGlobalBusinessor(D)sales,transfersordispositionsintheordinarycourseoftheGladGlobalBusinessconsistentwithpastpracticeandnotexceedingavalueinexcessof$[***]individuallyor$[***]intheaggregatenototherwiseincludedintheforegoingclauses(A)through(C);and

(iv)nottotakeanyactionforwhichtheconsentoftheP&GPartnerswouldberequiredaftertheClosingDatepursuanttoSection5.3(a)hereof.

(b)NotwithstandingtheprovisionsofSection7.7(a),thePartiesagreethatcashandcashequivalents(excludingpettycash)oftheGladGlobalBusinesspriortoClosingwillbeaCloroxExcludedAssetpursuanttotheprovisionsofSection2.2(b)hereof.TheCloroxPartieswillhavetherighttoremoveanysuchcashorcashequivalents(excludingpettycash)fromtheGladGlobalBusinesspriortotheClosing,subjecttotherepresentationandwarrantycontainedinSection4.2(a)(ii)hereof.

(c)TheP&GPartiesagreethatpriortotheClosingDate,withoutthepriorwrittenconsentofClorox,theP&GPartieswillnotsell,transferorotherwisedisposeof(i)anyP&GEquipmentor(ii)theForceflexTechnologyorImpressTechnology(ineachcaseassuchtermsaredefinedintheP&GLicenseAgreement)tobelicensedtotheCloroxPartiespursuanttotheP&GLicenseAgreement.TheP&GPartiesagreethattheywillcomplywiththeprovisionsofSection7.4oftheformofLicenseAgreementattachedasExhibitA,whichprovisionsareincorporatedbyreferenceherein.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section7.8InternationalRelationships.

ThePartieshaveagreedthattotheextenttheGladGlobalBusinessexpandstoestablishoperationsinanycountryotherthantheUnitedStates,Canada,AustraliaNewZealand,China,Philippines,HongKong,CostaRica,KoreaandSouthAfrica(a“NewCountry”),thePartieswillenterarelationshipinsuchNewCountry,whichrelationshipwill,attheelectionoftheCloroxPartners,either(a)haveastructureandbeontermssubstantiallysimilartothoseundertheJVSublicenseAgreementsandtheGladLicenseAgreementsfortheInternationalLicenseesor(b)havethestructureandbeonthetermssetforthonExhibitGhereto,ineachcaseunlessthePartiesmutuallydeterminethatsuchstructurewouldresultinmaterialadversetaxconsequencestoP&GorClorox,inwhichcaseP&GandCloroxwillnegotiateingoodfaithtomodifythestructureasnecessarytoavoidsuchadversetaxconsequences.ThePartiesdonotintendfortheprovisionsofthisSection7.8tospecifyanyparticularoperationalstructuretobeusedinanyNewCountryortosetinadvancecompensationtobereceivedbyP&GoritsAffiliatesinconnectionwithanyservicesthatmaybeprovidedbyP&GoritsAffiliatesasaserviceprovidertotheoperationsinsuchNewCountry.ThePartiesagreetouseall[***]effortsandtonegotiateingoodfaithtocompletethedocumentationnecessarytoimplementanysuchrelationship.Fortheavoidanceofdoubt,intheeventthatnotwithstandingtheprovisionsofthisSection7.8,thePartiesareunabletoagreeupontheimplementationofanysuchrelationshipinanycountry,suchfailurewillnotpreventtheGladGlobalBusinessfromenteringintooperationinthecountryinquestion.

Section7.9SublicensesofP&GIntellectualProperty.

(a)TotheextentTheGladProductsCompanyoritsAffiliates,onbehalfoftheJointVenture,sublicensesanyoftheIntellectualPropertylicensedtoitbyP&GSubundertheP&GLicenseAgreementtoanyAffiliateofClorox,eachofTheGladProductsCompanyandtheotherCloroxPartiesagreeasfollowsduringthetermofanysuchsublicense:

(i)to[***]withrespectto[***]relatingtothelicenseesunderanysuchsublicensesandthe[***]conductedbysuchlicensees.ForpurposesofthisSection7.9(a),materialitywillbejudgedbasedontheGladLicensedBusinesstakenasawhole,providedthat(i)[***]GladLocalBusiness,(ii)any[***]inexcessof$[***]and(iii)any[***]thatwillbeattributedtoanyGladLocalBusinessthat[***]willbedeemedtobematerial;

(ii)toprovideP&GSubwithcopiesoftheinformationandreportssuchPartyreceivesfromthelicenseesunderanysuchsublicenses,anduponthereasonablerequestofP&GSub,obtainfromthelicenseesundersuchsublicenses,additionalinformationconcerningtheGladLicensedBusiness;

(iii)notto[***],totheextentsuchPartyhastherightunderanysuchsublicenseto[***]withrespecttotheJointVentureandtheGladBusiness;and

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(iv)touse[***]effortstocausethelicenseesunderanysuchsublicensestoconducttheGladLocalBusinessesconductedbysuchlicenseesinamannernotinconsistentwiththeoverallstrategicdirectionoftheGladBusiness,butsubjecttolocalmarketconditionsandothercircumstancesofthejurisdictionsinwhichsuchGladLocalBusinessesareconducted.

(b)P&Gwillhavetheright[***]year,uponreasonablenoticetoTheGladProductsCompany,tohaveanindependentpublicaccountingfirmreviewandauditthebooks,recordsandaccountsoftheGladLicensedBusiness,atP&G’sexpense.P&GagreestocauseanyreviewconductedpursuanttothisSection7.9(b)tobeconductedinamannersoasnottounreasonablyinterferewiththenormalbusinessoperationsoftheGladLicensedBusiness.

ARTICLEVIII

CONDITIONSPRECEDENTTOCLOSING

Section8.1ConditionstoEachParty’sObligations.

TherespectiveobligationsofeachPartytoconsummatethetransactionscontemplatedbythisAgreementtooccurattheClosingwillbesubjecttothefulfillmentofthefollowingconditionsonorpriortotheClosingDate:

(a)nostatute,rule,regulation,executiveorder,decree,orpreliminaryorpermanentinjunctionwillhavebeenenacted,entered,promulgatedorenforcedbyanystate,federalorforeigncourtofcompetentjurisdictionorGovernmentalAuthoritywhichprohibitsconsummationofthetransactionscontemplatedbythisAgreementandtheRelatedAgreements,whethertemporary,preliminaryorpermanent;provided,however,thatsubjecttothetermsofthisAgreementthePartieswillusetheir[***]effortstohavesuchorder,decreeorinjunctionvacated;

(b)thewaitingperiodapplicabletotheconsummationofthetransactionscontemplatedbythisAgreementundertheHSRActwillhaveexpiredorbeenearlierterminated;and

(c)allorders,consentsandapprovalsofGovernmentalAuthoritieslegallyrequiredfortheconsummationofthetransactionscontemplatedbythisAgreementwillhavebeenobtainedandbeineffectattheClosingDate,exceptthoseforwhichfailuretoobtainsuchconsentsandapprovalswouldnot,individuallyorintheaggregate,haveamaterialadverseeffectupontheCompanyoritsfuturebusinessorresultsofoperations.

Section8.2ConditionstotheClosingObligationsoftheCloroxParties.

TheobligationsoftheCloroxPartiestoconsummatethetransactionscontemplatedbythisAgreementtooccurattheClosingwillbesubjecttothefulfillmentofthefollowingadditionalconditions:

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(a)TheP&GPartieswillhaveperformedinallmaterialrespectstheirobligationsunderthisAgreementandanyRelatedAgreementrequiredtobeperformedbythematorpriortotheClosingDate,andtherepresentationsandwarrantiesoftheP&GPartiessetforthinthisAgreement(i)thatarequalifiedastoMaterialAdverseEffectwillbetrueandcorrectinallrespectsand(ii)thatarenotsoqualifiedwillbetrueandcorrectinallmaterialrespectsatandasoftheClosingDateasifmadeatandasofsuchtime,excepttotheextentthatanysuchrepresentationorwarrantyspecificallyspeakstoaspecifieddate,inwhichcasesuchrepresentationorwarrantywillhavebeentrueandcorrectasofsuchdate,andtheCloroxPartieswillhavereceivedacertificatetosucheffectdatedtheClosingDatesignedonbehalfoftheP&GPartiesbyanexecutiveofficerthereof;and

(b)TheP&GPartieswillhavedulyauthorized,executedanddeliveredtotheCloroxPartiesatorpriortotheClosingDateeachoftheRelatedAgreementstowhichitisaparty,andeachsuchRelatedAgreementswillbeinfullforceandeffect.

Section8.3ConditionstotheClosingObligationsoftheP&GParties.

TheobligationsoftheP&GPartiestoconsummatethetransactionscontemplatedbythisAgreementtooccurattheClosingwillbesubjecttothefulfillmentofthefollowingadditionalconditions:

(a)theCloroxPartieswillhaveperformedinallmaterialrespectstheirobligationsunderthisAgreementandanyRelatedAgreementrequiredtobeperformedbythematorpriortotheClosingDate,andtherepresentationsandwarrantiesoftheCloroxPartiessetforthinthisAgreement(i)thatarequalifiedastoMaterialAdverseEffectwillbetrueandcorrectinallrespectsand(ii)thatarenotsoqualifiedwillbetrueandcorrectinallmaterialrespectsatandasoftheClosingDateasifmadeatandasofsuchtime,excepttotheextentthatanysuchrepresentationorwarrantyspecificallyspeakstoaspecifieddate,inwhichcasesuchrepresentationorwarrantywillhavebeentrueandcorrectasofsuchdate,andinthecaseofeachoftherepresentationsandwarrantiestotheextentrelatingtotheGladExistingInternationalBusinesswillnotbesubjecttoanyexceptionsotherthanassetforthintheCloroxDisclosureSchedulethatwouldreasonablybeexpectedtohaveaMaterialAdverseEffect,andtheP&GPartieswillhavereceivedacertificatetosucheffectdatedtheClosingDatesignedonbehalfoftheCloroxPartiesbyanexecutiveofficerofClorox;

(b)eachCloroxPartywillhavedulyauthorized,executedanddeliveredtotheP&GPartiesatorpriortotheClosingDateeachoftheRelatedAgreementstowhichitisaparty,andeachsuchRelatedAgreementwillbeinfullforceandeffect;and

(c)theCloroxPartiesshallhavedeliveredtheSupplementalScheduletotheP&GParties.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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ARTICLEIX

ACCOUNTING;TAXMATTERS

Section9.1Accounting.

(a)TheaccountingprinciplesandpoliciesadoptedwithrespecttotheJointVenturearesetforthonExhibitHhereto(the“JVAccountingPrinciples”).TheJVAccountingPrinciplesshallalsoapplytotheconductoftheGladLicensedBusiness.

(b)EachJVPartnerwillbesuppliedwithestimatesofincomeandotherinformationnecessarytoenablesuchJVPartnertoprepareinatimelymanneritsU.S.federal,stateandlocalincomeestimatedtaxreturns(andextensionpayments,ifany)andsuchotherfinancialorotherstatementsandreportsthattheBoarddeemsappropriate;providedthateachJVPartnerwillbeprovidedwithcopiesofScheduleK-1fortheJointVentureforsuchFiscalYearnolaterthanseven(7)calendarmonthsaftertheendofthefirsttwoFiscalYearsoftheJointVentureandnolaterthansix(6)calendarmonthsaftertheendofanyFiscalYearthereafter.

(c)Within(i)sixty(60)daysaftertheendofeachofthefirsteightFiscalQuarters,andaftertheendofanyFiscalQuarterthereafter,(A)forty-five(45)dayswithrespecttotheGladBusinessand(B)sixty(60)dayswithrespecttoeachGladLocalBusinessand(ii)120daysafterthecloseofeachofthefirsttwoFiscalYearsoftheJointVentureandwithinninety(90)daysaftertheendofanyFiscalYearthereafter,theBoardwillcausetobepreparedinaccordancewiththeJVAccountingPrinciplesandsubmittedtoeachJVPartnerthebalancesheetoftheGladBusinessandeachGladLocalBusinessasoftheendofsuchperiodandastatementofincomeorlossandastatementofcashflowsoftheGladBusinessandeachGladLocalBusinessforsuchperiod.

(d)TheCloroxPartnerswillkeeporcausetobekeptbooksandrecordspertainingtothebusinessattributedtotheJointVentureshowingallofitsassetsandLiabilities,receiptsanddisbursements,realizedprofitsandlosses,JVPartner’sCapitalAccountsandalltransactionsattributedtotheJointVenture.SuchbooksandrecordsoftheJointVenturewillbekeptattheGladBusinessheadquartersinOakland,CaliforniaandtheJVPartnersandtheirrepresentativeswillatallreasonabletimeshavefreeaccesstheretoforthepurposeofinspectingorcopyingthesame.

(e)IncaseofaTransferofallorpartoftheJVInterestofanyJVPartner,theBoardmaycausetheJointVenturetoelect,pursuanttoSection734,743and754oftheCodetoadjustthebasisoftheassetsattributedtotheJointVenture;provided,however,theelectionunderSection754will[***]totheBoard’sdiscretionandsuchelectionwillbemadetimelyif[***]inconnectionwith[***].

(f)ThePartiesacknowledgeandagreethatfromtimetotimeduringtheTerm,astheGladBusinesschanges,adjustmentsmaybecomenecessarytotheJVAccountingPrinciplesortheprovisionsofthisAgreementtomaintaintheintendedrelativeeconomicinterestsofthePartieshereunderaswellastheintendedeconomicbenefitstothePartiesofthisJointVentureaseffectedbythisAgreementasoftheClosing.ThePartiesagreetonegotiateingoodfaithtoamendtheJVAccountingPrinciplesandthisAgreementasmaybenecessarytomaintainsuchrelativeeconomicinterestsandintendedeconomicbenefits,andanysuchadjustmentoramendmentpursuanttothisSection9.1(f)mustbemutuallyagreeduponbyalltheJVPartners.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(g)Clorox’sinternalauditgroupwillperformareviewatleastonceevery24monthsofthefinancialstatementsandprocessesandproceduresoftheGladBusiness,whichreviewwillbeconductedinamannerconsistentwiththatusedforscheduledperiodicreviewsbysuchinternalauditgroupofotherCloroxbusinesses.ThereportwithrespecttosuchreviewwillbeprovidedtotheBoard.

(h)P&Gwillhavetheright[***]year,uponreasonablenoticetoCloroxtohaveanindependentpublicaccountingfirmreviewandauditthebooks,recordsandaccountsoftheGladBusiness,atP&G’sexpense.P&GagreestocauseanyreviewconductedpursuanttothisSection9.1(h)tobeconductedinamannersoasnottounreasonablyinterferewiththenormalbusinessoperationsoftheGladBusiness.

Section9.2TaxMatters.

(a)ThetaxableyearoftheJointVenturewillbethesameasitsFiscalYear.

(b)TheJVPartnersagreeandacknowledgethattheJointVenturewillnotbesubjecttotheprovisionsofSections6221,et.seq.,oftheCode.TheJVPartnersfurtheragreethattheJointVenturewillnotelect,norwillanyJVPartner,theBoard,oranyotherPerson,electonbehalfoftheJointVenture,tocausetheJointVenturetobesubjecttosaidunifiedTaxProceedings.Accordingly,noJVPartnerwillhaveanyauthoritytorepresenttheJointVenturebeforetheInternalRevenueServiceorotherTaxauthorityinaunifiedTaxproceeding,norwillanyJVPartnerhaveauthoritytosignanyconsent,enterintoanysettlementagreement,extendthestatuteoflimitations,compromiseanyTaxdispute,ortakeanyotheractionregardingaTaxauditproceedingonbehalfofanyotherJVPartner(exceptthatCloroxPartiesmaytakesuchactionsonbehalfofotherCloroxParties).EachofCloroxandP&GSubagreetokeeptheotherinformedastotheprogressofTaxaudits,examinationsandproceedingsofsuchPartiesortheirAffiliatesthatrelatetoTaxitemsattributabletotheJointVenture.

(c)TheBoardwillcausetobepreparedallfederal,stateandlocaltaxreturnsoftheJointVentureforeachyearforwhichsuchreturnsarerequiredtobefiledandwillcausesuchreturnstobetimelyfiled.TheBoardwilldeterminetheappropriatetreatmentofeachitemofincome,gain,loss,deductionandcreditattributedtotheJointVentureandtheaccountingmethodsandconventionsunderthetaxlawsoftheUnitedStates,theseveralStatesandotherrelevantjurisdictionsastothetreatmentofanysuchitemoranyothermethodorprocedurerelatedtothepreparationofsuchtaxreturns.EachJVPartneragreesthatitwilltakenopositiononitstaxreturnsinconsistentwiththepositiontakenontheJointVenture’staxreturns.TheBoardonbehalfoftheJointVenturemaymakeallelectionsforfederalincometaxpurposes;providedthat,ifsuchelectionwouldhaveamaterialadverseeffectonP&G,theBoardwillprovidenoticetoandconsultP&Gregardingsuchelection.

(d)TheJVPartnersintendfortheJointVenturetobetreatedasapartnershipforU.S.federal,stateandlocalincometaxpurposes,andnoJVPartner(noranyPersonactingonbehalfoftheJointVenture)willtakeanyactioninconsistentwithsuchtreatment.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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ARTICLEX

INDEMNIFICATION

Section10.1IndemnificationbyCloroxPartners.

FromandaftertheClosingDate,theCloroxPartnerswilljointlyandseverallyindemnifyandholdharmlesstheP&GPartiesandtheirrespectiveAffiliates,andtherespectivedirectors,officers,employeesandagentsofanyoftheforegoingandanyoftheheirs,executors,successorsandassignsofanyoftheforegoing(collectively,the“P&GIndemnifiedParties”)fromandagainstanyandalldamages,claims,losses,expenses,costs,obligationsandLiabilitiesincluding,withoutlimitingthegeneralityoftheforegoing,Liabilitiesforallreasonableattorneys’feesandexpenses(includingattorneyandexpertfeesandexpensesincurredtoenforcesuccessfullythetermsofthisAgreement)(collectively,“LossesandExpenses”)sufferedorincurredbyanysuchP&GIndemnifiedPartyarisingfrom,relatingtoorotherwiseinrespectof,(a)anybreachof,orinaccuracyin,anyrepresentationorwarrantyoftheCloroxPartiescontainedinthisAgreementorinthecertificatedeliveredbytheCloroxPartiespursuanttoSection8.3(a)ofthisAgreement,(b)anybreachofanycovenantorotheragreementoftheCloroxPartiescontainedinthisAgreement,and(c)anyCloroxRetainedLiabilities.TheaggregateindemnificationobligationsoftheCloroxPartnerspursuanttotheforegoingclause(a),togetherwiththeindemnificationobligationsofsuchPersonswithrespecttobreachesofrepresentationsandwarrantiesundertheP&GLicenseAgreement,willbelimitedtoamaximumof$28,000,000,andtheCloroxPartnerswillhavenoindemnificationobligationswithrespecttosuchclause(a)unlesstheaggregateofallLossesandExpensesrelatingtheretoandwithrespecttobreachesofrepresentationsandwarrantiesundertheP&GLicenseAgreementforwhichtheCloroxPartnerswould,butforthisprovision,beliableexceedsonacumulativebasisanamountequalto$3,000,000,andthenonlytotheextentofanysuchexcess.Anyclaimsforindemnificationpursuanttosuchclause(a)mustbemadepriortothedatethatiseighteen(18)monthsaftertheClosingDate.FromandaftertheClosingDate,theCloroxPartnerswillfurtherjointlyandseverallyindemnifyandholdharmlesstheP&GIndemnifiedPartiesfromandagainstanyandallLossesandExpensesarisingoutoforrelatedtoanythirdpartyclaimthatanyP&GIndemnifiedPartyhasanyLiabilityorobligationwithrespecttoanyLiabilityattributedtotheJointVentureorarisingoutoforrelatedtotheGladBusinessortheGladLicensedBusiness,providedthatsuchindemnificationwillnotapplytoanyLiabilityorobligationforwhichanyP&GIndemnifiedPartyhasagreedtoprovideindemnificationorisotherwiseexpresslyliableforpursuanttothetermsoftheRelatedAgreements.

Section10.2IndemnificationbyP&GPartners.

FromandaftertheClosingDate,theP&GPartnerswillindemnifyandholdharmlesseachoftheCloroxPartnersandtheirrespectiveAffiliates,andtherespectivedirectors,officers,employeesandagentsofanyoftheforegoing,andanyoftheheirs,executors,successorsandassignsofanyoftheforegoing(collectively,the“CloroxIndemnifiedParties”andtogetherwiththeP&GIndemnifiedParties,the“IndemnifiedParties”)fromandagainstanyandallLossesandExpensessufferedorincurredbyanysuchCloroxIndemnifiedPartyarisingfrom,relatingtoorotherwiseinrespectof,(a)anybreachof,orinaccuracyin,anyrepresentationorwarrantyoftheP&GPartiescontainedinthisAgreementorinthecertificatedeliveredbytheP&GPartiespursuanttoSection8.2(a)ofthisAgreement,(b)anybreachofanycovenantorotheragreementoftheP&GPartiescontainedinthisAgreementand(c)anyPermittedLiensexistingasoftheClosingwithrespecttotheP&GEquipment.TheaggregateindemnificationobligationsoftheP&GPartnerspursuanttotheforegoingclause(a),togetherwiththeindemnificationobligationsofsuchPersonswithrespecttobreachesofrepresentationsandwarrantiesundertheP&GLicenseAgreement,willbelimitedtoamaximumof$28,000,000,andtheP&GPartnerswillhavenoindemnificationobligationswithrespecttosuchclause(a)orwithrespecttobreachesofrepresentationsandwarrantiesundertheP&GLicenseAgreement,unlesstheaggregateofallLossesandExpensesrelatingtheretoforwhichtheP&GPartnerswould,butforthisprovision,beliableexceedsonacumulativebasisanamountequalto$3,000,000,andthenonlytotheextentofanysuchexcess.Anyclaimsforindemnificationpursuanttosuchclause(a)mustbemadepriortothedatethatiseighteen(18)monthsaftertheClosingDate.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section10.3Third-PartyClaims.

IfaclaimbyathirdpartyismadeagainstanIndemnifiedPartyhereunder,andifsuchIndemnifiedPartyintendstoseekindemnitywithrespecttheretounderthisArticleX,suchIndemnifiedPartywillpromptlynotifyClorox,inthecaseofaP&GIndemnifiedParty,orP&G,inthecaseofaCloroxIndemnifiedParty(suchpersontobenotified,the“IndemnifyingParty”)inwritingofsuchclaimssettingforthsuchclaimsinreasonabledetail,providedthatfailureofsuchIndemnifiedPartytogivepromptnoticeasprovidedhereinwillnotrelievetheIndemnifyingPartyofanyofitsobligationshereunder,excepttotheextentthattheIndemnifyingPartyismateriallyprejudicedbysuchfailure.TheIndemnifyingPartywillhavetwenty(20)daysafterreceiptofsuchnoticetoundertake,throughcounselofitsownchoosing,subjecttothereasonableapprovalofsuchIndemnifiedParty,andatitsownexpense,thesettlementordefensethereof,andtheIndemnifiedPartywillcooperatewithitinconnectiontherewith;provided,however,thattheIndemnifiedPartymayparticipateinsuchsettlementordefensethroughcounselchosenbysuchIndemnifiedParty,providedthatthefeesandexpensesofsuchcounselwillbebornebysuchIndemnifiedParty.IftheIndemnifyingPartywillassumethedefenseofaclaim,itwillnotsettlesuchclaimwithoutthepriorwrittenconsentoftheIndemnifiedParty,(a)unlesssuchsettlementincludesasanunconditionaltermthereofthegivingbytheclaimantofareleaseoftheIndemnifiedPartyfromallLiabilitywithrespecttosuchclaimor(b)ifsuchsettlementinvolvestheimpositionofequitableremediesortheimpositionofanymaterialobligationsonsuchIndemnifiedPartyotherthanfinancialobligationsforwhichsuchIndemnifiedPartywillbeindemnifiedhereunder.IftheIndemnifyingPartywillassumethedefenseofaclaim,thefeesofanyseparatecounselretainedbytheIndemnifiedPartywillbebornebysuchIndemnifiedPartyunlessthereexistsaconflictbetweenthemastotheirrespectivelegaldefenses(otherthanonethatisofamonetarynature),inwhichcasetheIndemnifiedPartywillbeentitledtoretainseparatecounsel,thereasonablefeesandexpensesofwhichwillbereimbursedbytheIndemnifyingParty.IftheIndemnifyingPartydoesnotnotifytheIndemnifiedPartywithintwenty(20)daysafterthereceiptoftheIndemnifiedParty’snoticeofaclaimofindemnityhereunderthatitelectstoundertakethedefensethereof,theIndemnifiedPartywillhavetherighttocontest,settleorcompromisetheclaimbutwillnottherebywaiveanyrighttoindemnitythereforpursuanttothisAgreement.TheindemnificationprovisionssetforthinthisArticleXarethesoleandexclusivemeansofrecoveryofmoneydamageswithrespecttothematterscoveredherein,exceptforfraud.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section10.4LimitationonLossesandExpenses

Notwithstandinganythingtothecontrarycontainedherein,noIndemnifyingPartywillbeliableforanypunitivedamagespursuanttothisAgreementoranyoftheRelatedAgreements(itbeingunderstoodthatanypunitivedamagespaidbyanyIndemnifiedPartytoanythirdpartywillbeconsidereddirectdamagesnotsubjecttothisSection10.4).

ARTICLEXI

MISCELLANEOUS

Section11.1AmendmentsandWaivers.

ThisAgreementmaybeamendedonlybyawritteninstrumentexecutedbyCloroxandtheP&GPartners.AnyamendmenteffectedinaccordancewiththeimmediatelyprecedingsentencewillbebindingonallofthePartiestothisAgreement.NofailureordelaybyanyPartyinexercisinganyright,powerorprivilegehereunderwilloperateasawaiverthereofnorwillanysingleorpartialexercisethereofprecludeanyotherorfurtherexercisethereofortheexerciseofanyotherright,powerorprivilege.

Section11.2Successors,AssignsandTransferees.

TheprovisionsofthisAgreementwillbebindinguponandwillinuretothebenefitofthePartiesandtheirrespectivesuccessorsandPermittedTransferees,eachofwhichwillagreeinawritingreasonablysatisfactoryinformandsubstancetoCloroxandtheP&GPartnerstobecomeaPartyheretoandbeboundtothesameextentherebyasthetransferorthathastransferredtheJVInterest.NoPartytothisAgreementmayassignanyofitsrightsorobligationsunderthisAgreementtoanypersonotherthanaPermittedTransfereewithoutthepriorwrittenconsentoftheotherParties.

Section11.3Notices.

Anynoticesorothercommunicationsrequiredorpermittedhereunderwillbesufficientlygivenif(a)deliveredpersonally,(b)transmittedbyfacsimile(withwrittentransmissionconfirmation),(c)mailedbycertifiedorregisteredmail(returnreceiptrequested)(inwhichcasesuchnoticewillbedeemedgivenonthethirddayaftersuchmailing)or(d)sentbyovernightFederalExpressorotherovernightcourier(withwrittendeliveryconfirmation),addressedasfollowsortosuchotheraddressofwhichthePartiesmayhavegivennotice:

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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TotheCloroxPartners:

TheCloroxCompany1221BroadwayOakland,CA94612Attention:GeneralCounselFacsimile:(510)271-1696Telephone:(510)271-4737E-mail:pete.bewley@clorox.com

TotheP&GPartners:

TheProcter&GambleCompanyOneP&GPlazaCincinnati,OH45202Attention:JeffreyD.Weedman,VicePresidentFacsimile:(513)983-0911Telephone:(513)983-1921E-mail:weedman.jd@pg.com

Withcopiesto:

TheProcter&GambleCompanyOneP&GPlazaCincinnati,OH45202Attention:ChrisWaltherTelecopy:(513)983-2611Telephone:(513)983-8469E-mail:walther.cb@pg.com

Section11.4Integration.

ThisAgreement,theRelatedAgreementsandthedocumentsreferredtohereinortherein,ordeliveredpursuantheretoorthereto,containtheentireunderstandingofthePartieswithrespecttothesubjectmatterhereofandthereof.Therearenoagreements,representations,warranties,covenantsorundertakingswithrespecttothesubjectmatterhereofandthereofotherthanthoseexpresslysetforthhereinandtherein.ThisAgreementsupersedesallotherprioragreementsandunderstandingsbetweenthePartieswithrespecttosuchsubjectmatter.

Section11.5Severability.

Ifoneormoreoftheprovisions,paragraphs,words,clauses,phrasesorsentencescontainedherein,ortheapplicationthereofinanycircumstances,isheldinvalid,illegalorunenforceableinanyrespectforanyreason,thevalidity,legalityandenforceabilityofanysuchprovision,paragraph,word,clause,phraseorsentenceineveryotherrespectandoftheremainingprovisions,paragraphs,words,clauses,phrasesorsentenceshereofwillnotbeinanywayimpaired,itbeingintendedthatallrights,powersandprivilegesofthePartieswillbeenforceabletothefullestextentpermittedbylaw.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section11.6Counterparts.

ThisAgreementmaybeexecutedintwoormorecounterparts,andbydifferentPartiesonseparatecounterpartseachofwhichwillbedeemedanoriginal,butallofwhichwillconstituteoneandthesameinstrument.

Section11.7GoverningLaw.

ThisAgreementwillbeconstruedinaccordancewith,andtherightsofthePartieswillbegovernedby,thelawsoftheStateofNewYork.

Section11.8Arbitration.

(a)ThePartieswillattemptingoodfaithtoresolvethroughnegotiationanydispute,claimorcontroversyarisingoutoforrelatingtothisAgreement.EitherCloroxortheP&GPartnersmayinitiatenegotiationsonbehalfoftheCloroxPartnersortheP&GPartners,asthecasemaybe,byprovidingwrittennoticeinletterformtotheotherParty,settingforththesubjectofthedisputeandthereliefrequested.Therecipientofsuchnoticewillrespondinwritingwithinfivedayswithastatementofitspositiononandrecommendedsolutiontothedispute.Ifthedisputeisnotresolvedbythisexchangeofcorrespondence,thenrepresentativesofeachofCloroxandtheP&GPartnerswithfullsettlementauthoritywillmeetatamutuallyagreeabletimeandplacewithinten(10)daysofthedateoftheinitialnoticeinordertoexchangerelevantinformationandperspectives,andtoattempttoresolvethedispute.Ifthedisputeisnotresolvedbythesenegotiations,thematterwillbesubmittedtoJAMS,oritssuccessor,formediation.

(b)EitherCloroxortheP&GPartnersmaycommencemediationonbehalfoftheCloroxPartnersortheP&GPartners,asthecasemaybe,byprovidingtoJAMSandtheotherPartyawrittenrequestformediation,settingforththesubjectofthedisputeandthereliefrequested.ThePartieswillcooperatewithJAMSandwithoneanotherinselectingamediatorfromJAMS’panelofneutrals,andinschedulingthemediationproceedings.ThePartiescovenantthattheywillparticipateinthemediationingoodfaith,andthatClorox,ontheonehand,andtheP&GPartners,ontheotherhand,willshareequallyinitscosts.Alloffers,promises,conductandstatements,whetheroralorwritten,madeinthecourseofthemediationbyanyoftheParties,theiragents,employees,expertsandattorneys,andbythemediatororanyJAMSemployees,areconfidential,privilegedandinadmissibleforanypurpose,includingimpeachment,inanyarbitrationorotherproceedinginvolvingtheParties,providedthatevidencethatisotherwiseadmissibleordiscoverablewillnotberenderedinadmissibleornon-discoverableasaresultofitsuseinthemediation.EitherCloroxortheP&GPartnersmayinitiatearbitrationonbehalfoftheCloroxPartnersortheP&GPartners,asthecasemaybe,withrespecttothematterssubmittedtomediationbyfilingawrittendemandforarbitrationatanytimefollowingtheinitialmediationsessionor45daysafterthedateoffilingthewrittenrequestformediation,whicheveroccursfirst.ThemediationmaycontinueafterthecommencementofarbitrationifthePartiessodesire.UnlessotherwiseagreedbytheParties,themediatorwillbedisqualifiedfromservingasarbitratorinthecase.TheprovisionsofthisSection11.8maybeenforcedbyanycourtofcompetentjurisdiction,andthePartyseekingenforcementwillbeentitledtoanawardofallcosts,feesandexpenses,includingattorneys’fees,tobepaidbythePartyagainstwhomenforcementisordered.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(c)Anydispute,claimorcontroversyarisingoutoforrelatingtothisAgreementorthebreach,termination,enforcement,interpretationorvaliditythereof,includingthedeterminationofthescopeorapplicabilityofthisAgreementtoarbitrate,whichisnotresolvedthroughnegotiationormediation,willbedeterminedbyarbitrationconductedinOakland,CA,beforeasolearbitratorbasedinthestateofNewYork,inaccordancewiththelawsoftheStateofNewYorkforagreementsmadeinandtobeperformedinthatState.ThearbitrationwillbeadministeredbyJAMSpursuanttoitsComprehensiveArbitrationRulesandProceduresunlessCloroxandtheP&GPartnersagreetouseitsStreamlinedArbitrationRulesandProcedures.Thearbitrator’sdecisionandawardwithrespecttothedisputereferredtowillbefinalandbindingonthePartiesandmaybeenteredinanycourtwithjurisdiction,andthePartieswillabidebysuchdecisionandaward.

(d)Thearbitratorwill,initsaward,allocateallofthecostsofthearbitration(andthemediation,ifapplicable),includingthefeesofthearbitratorandthereasonableattorneys’feesoftheprevailingParty,againstthePartywhodidnotprevail,ifany.

Section11.9InjunctiveRelief.

EachofthePartiesacknowledgesandagreesthatpendingtheoutcomeofanyarbitrationproceedingpursuanttoSection11.8,eachofthePartieswillbeentitledtoaninjunction,restrainingorderorotherequitablerelieftopreventbreachesoftheprovisionsofthisAgreementandtheRelatedAgreementsinanycourtofcompetentjurisdictionsolelyforthepurposeofmaintainingthestatusquo,inadditiontoanyotherremedytowhichtheymaybeentitledpursuanttothetermshereof.

Section11.10Expenses.

ExceptassetforthinthisAgreementandtheRelatedAgreements,whetherornotthetransactionscontemplatedbythisAgreementareconsummated,alllegalandothercostsandexpensesincurredinconnectionwiththisAgreementandtheRelatedAgreementsandthetransactionscontemplatedherebywillbepaidbythePartyincurringsuchcosts.

Section11.11NoThirdPartyBeneficiaries.

ExceptfortherightsoftheIndemnifiedPartiespursuanttoArticleX,nothinginthisAgreement,expressorimplied,isintendedtoconferuponanyPerson,otherthanthePartiesortheirrespectivesuccessorsandpermittedassigns,anyrights,remedies,benefits,obligationsorLiabilitiesofanynaturewhatsoeverunderorbyreasonofthisAgreement.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section11.12GuaranteesbyCloroxandP&G.

(a)InconsiderationoftheP&GPartiesenteringintothisAgreement,CloroxherebyfullyandunconditionallyguaranteesthateachoftheCloroxPartieswillfullyperformanddischargewhendueallofitsobligationsandLiabilitiesunderthisAgreementandeachoftheRelatedAgreements,includingbutnotlimitedtofullandpunctualpaymentanddischargewhendueofalloftheCloroxParties’indemnificationobligationstotheP&GIndemnifiedPartiesunderthisAgreementandeachoftheRelatedAgreements.TheguaranteeofCloroxpursuanttothisSection11.12(a)isanabsolute,unconditionalandcontinuingguaranteeofthefullandpunctualpaymentandperformancebytheCloroxPartiesofsuchobligationsandLiabilitieswhendueandnotoftheircollectibilityonlyandisinnowayconditioneduponanyrequirementthattheP&GPartiesfirstattempttocollectanyoftheobligationsorLiabilitiesfromtheCloroxParties,oruponanyothercontingencywhatsoever.TheobligationsofCloroxhereunderareabsoluteandunconditionalregardlessofthevalidityorenforceabilityofthisAgreementoranyoftheRelatedAgreementsagainstanyCloroxPartner.CloroxherebywaivesanylegalorequitabledefensetotheenforceabilityoftheprovisionsofthisSection11.12(a).

(b)InconsiderationoftheCloroxPartiesenteringintothisAgreement,P&GherebyfullyandunconditionallyguaranteesthateachoftheP&GPartieswillfullyperformanddischargewhendueallofitsobligationsandLiabilitiesunderthisAgreementandeachoftheRelatedAgreements,includingbutnotlimitedtofullandpunctualpaymentanddischargewhendueofalloftheP&GParties’indemnificationobligationstotheP&GIndemnifiedPartiesunderthisAgreementandeachoftheRelatedAgreements.TheguaranteeofP&GpursuanttothisSection11.12(b)isanabsolute,unconditionalandcontinuingguaranteeofthefullandpunctualpaymentandperformancebytheP&GPartiesofsuchobligationsandLiabilitieswhendueandnotoftheircollectibilityonlyandisinnowayconditioneduponanyrequirementthattheCloroxPartiesfirstattempttocollectanyoftheobligationsorLiabilitiesfromtheP&GParties,oruponanyothercontingencywhatsoever.TheobligationsofP&GhereunderareabsoluteandunconditionedregardlessofthevalidityorenforceabilityofthisAgreementoranyoftheRelatedAgreementsagainstanyP&GPartner.P&GherebywaivesanylegalorequitabledefensetotheenforceabilityoftheprovisionsofthisSection11.12(b).

(c)InconsiderationoftheCloroxPartiesenteringintothisAgreementandtheLicenseAgreement,P&GherebyfullyandunconditionallyguaranteesthatanyPersontowhomanyIntellectualPropertysubjecttotheP&GLicenseAgreementistransferredinaccordancewithSection7.3oftheP&GLicenseAgreementandanysubsequentPersonstowhomsuchIntellectualPropertymaybetransferred(collectively,“IPTransferees”)willfullyperformanddischargewhenduealloftheirobligationsandLiabilitiesundertheP&GLicenseAgreement,includingbutnotlimitedtoanylicensesgrantedpursuanttoArticle2,Article3orArticle6oftheP&GLicenseAgreement.TheguaranteeofP&GpursuanttothisSection11.12(b)isanabsolute,unconditionalandcontinuingguaranteeofthefullandpunctualpaymentandperformancebytheIPTransfereesofsuchobligationsandLiabilitieswhendueandnotoftheircollectibilityonlyandisinnowayconditioneduponanyrequirementthattheCloroxPartiesfirstattempttocollectanyoftheobligationsorLiabilitiesfromtheIPTransferees,oruponanyothercontingencywhatsoever.TheobligationsofP&GhereunderareabsoluteandunconditionalregardlessofthevalidityorenforceabilityoftheLicenseAgreementagainstanyIPTransferee.P&GherebywaivesanylegalorequitabledefensetotheenforceabilityoftheprovisionsofthisSection11.12(c).

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section11.13EffectivenessofAmendmentandRestatement,Representations,WarrantiesandAgreements.

ThisAgreementamendsandrestatescertainprovisionsoftheOriginalAgreementandrestatesthetermsoftheOriginalAgreementintheirentirety.AllamendmentstotheOriginalAgreementeffectedbythisAgreement,andallothercovenants,agreements,termsandprovisionsofthisAgreementshallhaveeffectasoftheOriginalDateunlessexpresslystatedotherwise.ThisAgreementshallbeeffectiveasofthedatethatcopieshereofhavebeenexecutedanddeliveredbyeachoftheParties.EachoftherepresentativesandwarrantiesmadeinthisAgreementshallbedeemedtobemadeonandasoftheOriginalDateandnotmadeasofthedatehereof.

[REMAINDEROFPAGEINTENTIONALLYLEFTBLANK.]

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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INWITNESSWHEREOF,eachoftheundersignedhasexecutedthisAgreementorcausedthisAgreementtobeexecutedonitsbehalfasofthedatefirstwrittenabove.

THECLOROXCOMPANYBy:/s/LarryPeiros

Name:LarryPeiros Title:GroupVicePresident

THEGLADPRODUCTSCOMPANYBy: /s/LarryPeiros

Name:LarryPeiros Title:VicePresident

GLADMANUFACTURINGCOMPANYBy: /s/LarryPeiros

Name:LarryPeiros Title:VicePresident

CLOROXSERVICESCOMPANYBy: /s/LarryPeiros

Name:LarryPeiros Title:VicePresident

[SignaturePagetoAmendedandRestatedJointVentureAgreement]

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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THECLOROXSALESCOMPANY

By:/s/LarryPeiros Name:LarryPeirosTitle:VicePresident

CLOROXINTERNATIONALCOMPANY

By: /s/LarryPeiros Name:LarryPeirosTitle:VicePresident

THEPROCTER&GAMBLECOMPANY

By: /s/JeffreyD.Weedman Name:JeffreyD.WeedmanTitle:VicePresident,ExternalBusinessDevelopment&GlobalLicensing

PROCTER&GAMBLERHD,INC.

By: /s/JeffreyD.Weedman Name:JeffreyD.WeedmanTitle:Attorney-in-fact

[SignaturePagetoAmendedandRestatedJointVentureAgreement]

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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ExhibitCDescriptionofP&GEquipment

[***]

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

ExhibitDPreliminaryBusinessPlan

[***]

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

ExhibitEPreliminaryBudget

[***]

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

EXHIBITFCLOROXCORPORATESERVICES

1.CloroxServicesandPersonnel.CloroxwillprovidetotheGladGlobalBusinesspayroll,productsupply,projectmanagement,humanresourceservices,informationsystemsservices,facilitiesservices,treasury,tax,financialsystemandaccountingservices,legalservicesandothercorporateservicescurrentlyprovidedbyClorox,whicharereferredtoas“CloroxServices”forpurposesofthisAgreement.CloroxwillprovideorwillcausetobeprovidedtotheGladGlobalBusinesstheCloroxServicesatsuchlevelsastheGladGlobalBusinessmayrequirefromtimetotime.TheBoardwillreviewonanannualbasisthecostsandqualityoftheCloroxServicesanddeterminewhetheritcontinuestobeinthebestinterestoftheGladGlobalBusinessforCloroxtocontinuetoprovideallsuchservices.TheGladLeadershipTeamwillmonitortheCloroxServicesonanongoingbasisandwillreporttotheBoardonanannualbasisastotheresultsofitsreviewoftheCloroxServicesandwillprovidetheBoardwithanyrecommendationsforchangesintheCloroxServices.TheBoardwillpromptlyactonanysuchrecommendationbytheGladLeadershipTeam.

2. FeesforCloroxServices.ThefeesCloroxwillallocatetotheGladGlobalBusinessfortheCloroxServices(the“ServiceFees”)shallbeconsistentwiththeJVAccountingPrinciplesandwillincludeapportionedamountsforfacilitiesleasesandsupplies,salaries,bonusesandbenefits(includingpensionplancosts)ofCloroxemployeeswhoperformtheCloroxServices,operatingsupplies,utilities,telephone,computersand/orotherexpensesasappropriate.CloroxandtheGladGlobalBusinesswilluse[***]effortstoidentifyCloroxServicesthatcanbeassumedbytheGladGlobalBusinessandnolongerprovidedbyCloroxcorporate(“AssumedServices”).Inaddition,iftheGladGlobalBusinesscanobtainanyCloroxServicefromathirdpartyat[***]thantheallocatedcostofCloroxprovidingsuchCloroxService,itiscontemplatedthattheGladGlobalBusinesswilloutsourcesuchserviceanditwillnolongerbeprovidedbyCloroxcorporate(“OutsourcedServices”and,togetherwiththeAssumedServices,the“PushDownServices”).TotheextentaCloroxServicebecomesaPushDownServiceinanycalendaryear,theServiceFeeforsuchyearwillbereducedbyanamount(the“PushDownCredit”)equaltowhatthecostofprovidingsuchCloroxServiceforthatremainderofthecalendaryear(i.e.afterthepushdownoccurs)wouldhavebeenbasedonthecostofprovidingsuchCloroxServiceduringthesameperiodofthepriorcalendaryear(determinedinaccordancewiththeJVAccountingPrinciples).TotheextentthattheBoardoftheJointVentureunanimouslydeterminestoobtainanyadditionalcorporateservicesfromClorox(“IncrementalServices”)inanycalendaryear,theServiceFeeforsuchyearwillbeincreasedbyanamount(the“SupplementalAmount”)equaltothecostofprovidingsuchIncrementalServices(whichwillthereafterbedeemedCloroxServices)fortheremainderofthatcalendaryear.

(a)TheBaseServiceFeeallocatedtotheGladGlobalBusinessforcalendaryear2003(the“2003BaseServiceFee”)willequal[***]%ofthe

aggregatenetsalesoftheGladGlobalBusinessforcalendaryear2002,asadjustedforthechangeintheConsumerPriceIndexduringcalendaryear2002(i.e.ifnetsalesin2002were$[***]millionandtheConsumerPriceIndexincreasedby[***]%,the2003BaseServiceFeewouldequal$[***]).TheactualServiceFeepayablefor2003willequalthe2003BaseServicesFee[***]thePushDownCreditfor2003[***]theSupplementalAmountfor2003,ifany

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

(b)ThebaseServiceFee(the“BaseServiceFee”)allocatedtotheGladGlobalBusinessforeachcalendaryear(the“RelevantYear”)commencingin2004willequaltheServiceFeeactuallypaidintheimmediatelyprecedingcalendaryear[***]thePushDownAdjustmentfortheimmediateprecedingcalendaryear[***]theIncrementalServicesAdjustmentfortheimmediatelyprecedingcalendaryear,asadjustedforthechangeintheConsumerPriceIndexduringtheimmediatelyprecedingcalendaryear(i.e.ifthe2003ServiceFeewas$[***],thePushDownAdjustmentfor2003was$[***],theIncrementalServicesAdjustmentwaszeroandtheConsumerPriceIndexincreasedby[***]%theBaseServiceFeewouldequal$[***]).TheactualServiceFeepayablefortheRelevantYearwillequaltheBaseServiceFeefortheRelevantYear[***]thePushDownCreditfortheRelevantYear[***]theSupplementalAmountfortheRelevantYear,subjecttotheCapandFloordescribedbelow.

The“PushDownAdjustment”foranycalendaryearwillequalthesumof(x)theamountthatthePushDownCreditwouldhavebeeninsuchyearhadallCloroxServicesthatbecamePushDownServicesinthatcalendaryearbecomePushDownServicesonthefirstdayofthatcalendaryear[***](y)theactualPushDownCreditforthatcalendaryear.The“IncrementalServicesAdjustment”foranycalendaryearwillequalthesumof(A)theamountthattheSupplementalAmountwouldhavebeeninsuchyearhadallservicesthatbecameIncrementalServicesinthatcalendaryearbecomeIncrementalServicesonthefirstdayofthatcalendaryear[***](B)theactualSupplementalAmountforthatcalendaryear.

(c)Ineachcalendaryearbeginningin2004,theServicesFeewillnotbelessthantheFloorAmount(asdefinedbelow)forthatcalendaryearoftheaggregatenetsalesoftheCloroxGlobalBusinesstheimmediatelyprecedingcalendaryearnorgreaterthantheCapAmount(asdefinedbelow)forthatcalendaryearoftheaggregatenetsalesoftheCloroxGlobalBusinesstheimmediatelyprecedingcalendaryear.TheFloorAmountwillinitiallyequal[***]%andtheCapAmountwillinitiallyequal[***]%.Beginningin2004theFloorAmountandtheCapAmountwillbesubjecttoadjustmentannuallyasfollows:

(i)AtsuchtimeasthesumofallPushDownCredits[***]allPushDownAdjustments[***]allSupplementalAmounts[***]allIncremental

ServicesAdjustmentsoccurringinorpriortoaspecificcalendaryear(the“BaseYear”)exceeds[***]%oftheaggregatenetsalesoftheGladGlobalBusinessintheBaseYear(thepercentageamountbywhichtheyexceed[***]%isreferredtoasthe“InitialAdjustmentAmount”),theFloorAmountandtheCapAmountfortheimmediatelysucceedingcalendaryearwillbereducedbytheInitialAdjustmentAmount.TheFloorAmountandtheCapAmountwillremainatsuchlowerlevelsunlessanduntilfurtheradjustedpursuanttothisparagraph(c).

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(ii)TotheextentthatanyadditionalPushDownServicesareimplementedaftertheBaseYear(eachyearinwhichanysuchadditionalPushDownServiceisimplementedisreferredtohereinasan“AdjustmentYear”),thentheFloorAmountandtheCapAmountfortheimmediatelysucceedingyearwillbereducedbythepercentoftheaggregatenetsalesoftheGladGlobalBusinessintheAdjustmentYearrepresentedbythesumofthePushDownCreditforsuchAdjustmentYearplusthePushDownAdjustmentforsuchAdjustmentYear,providedthattheFloorAmountandtheCapAmountshallinnoeventbelessthan[***].TheFloorAmountandtheCapAmountwillremainatsuchlowerlevelsunlessanduntilfurtheradjustedpursuanttothisparagraph(c).

(iii) TotheextentthattheBoardoftheJointVentureunanimouslydeterminestoobtainanyIncrementalServicesaftertheBaseYear(eachyearinwhichanysuchadditionalIncrementalServicesarefirstobtainedisreferredtohereinasa“SupplementalAdjustmentYear”),thentheFloorAmountandtheCapAmountfortheimmediatelysucceedingyearwillbeincreasedbythepercentoftheaggregatenetsalesoftheGladGlobalBusinessintheSupplementalAdjustmentYearrepresentedbythesumoftheSupplementalAmountforsuchSupplementalAdjustmentYearplustheIncrementalServicesAdjustmentforsuchAdjustmentYear.TheFloorAmountandtheCapAmountwillremainatsuchincreasedlevelsunlessanduntilfurtheradjustedpursuanttothisparagraph(c).

(d)TheaggregatePushDownCreditsfor2003and2004plustheaggregatePushDownAdjustmentsfor2003and2004willequalatleast$[***].

(e) The“ConsumerPriceIndex”meanstheConsumerPriceIndexofUrbanConsumers,WestRegionAllItems(baseperiod1982-1984=100),aspublishedbytheBureauofLaborStatisticsoftheUnitedStatesDepartmentofLaboror,ifsuchindexisnolongerpublishedorthemethodofcomputationthereofissubstantiallymodified,analternativeindexofsimilarweightingandgeographicfocusselectedbytheBoard.

3. Payments.AllServiceFeesallocatedtotheJointVenturepursuanttothisExhibitFshallbesettledquarterlyinarrearsbytheappropriateaccountingentries.AllServiceFeesallocatedtotheJointVenturehereunderwillbeexpensesattributabletotheJointVentureinaccordancewiththeJointVentureAccountingPrinciples.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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4. Outsourcing.AnyoftheCloroxServicesmaybeterminatedbytheBoardatanytimeduringtheTermoftheJointVentureandtherebybecomeOutsourcedServices,upon180dayspriorwrittennoticetoCloroxspecifyingtheCloroxServicestobeterminatedandthedateofsuchtermination,intheeventtheBoarddetermines(i)thattheGladGlobalBusinesscanobtainsuchservicesfromathirdpartyatalowercosttotheGladGlobalBusinessor(ii)thatitisotherwiseinthebestinterestoftheGladBusinesstodiscontinuesuchCloroxServices.Clorox’sactualdirectcostsincurredinconnectionwiththeterminationofanyCloroxServicesthatbecomeOutsourcedServiceswillbeattributedtotheGladGlobalBusiness.

5. RelationshipoftheParties.AllpersonsemployedbyCloroxoritsaffiliatesintheperformanceoftheCloroxServicesshallbethesoleresponsibilityof

CloroxanditsaffiliatesandP&Gshallhavenoobligationorresponsibilitywithrespecttheretoexceptasexpresslyprovidedherein.ThepersonsassignedbyCloroxtoprovidetheCloroxServicesshallatalltimesremainemployeesofCloroxoritsAffiliates,asapplicable,andshallnot,foranypurposes,beorbedeemedtobeemployeesofanyofP&GandP&Gshallhavenoobligationorresponsibilitywithrespectthereto,includingresponsibilityforpaymentofcompensation,benefits,insuranceandtaxesrelatedtosuchpersonsexceptasexpresslyprovidedherein.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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EXHIBITGTERMSOFINTERNATIONALRELATIONSHIPS

Structure NewEntityThroughUSJointVenture.InthosecountriesinwhichtheGladbusinessdoesnotcurrentlyoperate,theCloroxPartieswillformanentityinthelocalcountry,whichmaybeeitheracorporationorpass-throughentityforUnitedStatestaxpurposes.ThenewlyformedentitywillbeanassetdeemedattributedtotheUnitedStatesJointVenture.IfthelocalentityistreatedasacorporationforUnitedStatestaxpurposes,P&Gwillbedirectlyissuedoneshareofspecialvotingstockequalto10%ofthevoteinsuchentity,providedthatsuchshareshallnotcarryanydissenter’sappraisalorsimilarrights,andthatwithrespecttoanymatterthatrequiresavoteorconsentoftheshareholdersofsuchcorporation,P&GshallagreetovotesuchsharesinthesamemannerthatCloroxvoteswithrespecttoallmattersotherthanthosematterswithrespecttowhichP&Ghasavetorightasdescribedbelowunder“Governance–P&GVeto”.

Contribution.TheCloroxParties,onbehalfofthejointventure,willcontributeorlicenseIntellectualPropertyrightsassociatedwiththeGladbusinesstothenewlyformedentityandwillcontributecashattributabletothejointventuretofundstart-upcosts.CashdistributionsfromtheforeignentitytotheCloroxPartiesandproceedsfromthesaleofaninterestinsuchentityreceivedbytheCloroxPartieswillbedistributedtothepartiesunderthetermsoftheJVAgreement.

Distributions.TheforeignentitywilldistributeorpayDistributableCashFlow(eitherbydistributionsorroyaltypayments)ofsuchentitytotheCloroxPartiesonanannualbasisor,intheeventthenetprofitsofthebusinessintheapplicablejurisdictionexceed$[***]perannum,onaquarterlybasis.Fortheavoidanceofdoubt,DistributableCashFlowwillbereducedbyapplicableforeignincomeandothertaxes.Also,fortheavoidanceofdoubt,P&GwillbeentitledtoitsshareofSection902(income)and/orSection901(withholding)taxcreditswithrespecttosuchDistributableCashFlow.

Governance InternationalBoard.Theinternationaloperationsofthejointventurewillbegovernedbyaboardofmanagers(the“InternationalBoard”)

thatwillhaveauthoritytomakedecisionswithrespecttotheoperationsinallcountriesotherthantheUnitedStatesinthesamemannerastheBoardwithrespecttotheUnitedStatesoperations.

● Composition.TheInternationalBoardwillconsistofthesamemembersastheBoardfortheUnitedStatesbusiness,withthesameboardobserversbeingappointedbyP&G.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

● MeetingandProcedures.RegularmeetingsoftheInternationalBoardwillbescheduledtooccurimmediatelybeforeoraftertheUnitedStatesBoardmeetings.ThetermswithrespecttothegovernanceoftheinternationaloperationwillbesubstantiallyidenticaltotheJointVentureagreementfortheUnitedStates,includingwithrespecttomeetingnotice,voting,quorum,proxiesandothersimilarproceduralrequirements,disclosureofinformation,expensereimbursementandothermattersaddressedinSections5.1and5.2oftheJVAgreementwithrespecttotheBoardintheUnitedStates.

● OtherBoardApprovals.TheBoardshallreviewandapprovethebudget,businessplanandotheractionstobetakenbythe

internationalbusinessinthesamemannerasdetailedinSection5.4and5.5oftheJVAgreementwithrespecttotheUnitedStatesoperations.

P&GVeto.P&GwillhavethesamevetorightswithrespecttointernationaloperationsasitdoesintheUnitedStates(subjecttothesamedollarandotherthresholds).VetoeswillbesubjecttothesameresolutionprocedureasprovidedinSection5.3oftheJVAgreement.

LocalGovernance.ThegeneralmanagersoftheGladbusinessineachcountryoutsideoftheUnitedStateswillreporttotheInternationalBoard.Totheextentrequiredbylocallaw,localpartnershipentitiesmayhaveaboardordirectorsorothersimilargoverningbodyinadditiontotheInternationalBoard,butnosuchlocalboardorgoverningbodyshallhavetheauthoritytotakeanyactionforwhichapprovaloftheInternationalBoardorP&Gisrequiredpriortosuchapprovalbeingobtained.

Transfer TransferRestrictions.Theinterestsofthepartiesinthelocalpartnershipandlicenseagreementsdescribedabovewillbesubjecttothe

samerestrictionsontransferassetforthintheJVAgreement.

Tag-AlongandDrag-Along.Internationally,theP&Gaffiliatewillhavethesametag-alongrightsineachcountryonequivalenttermsasithaswithrespecttotheJointVentureintheUnitedStates.TheCloroxaffiliatewillalsohaveequivalentdrag-alongrightsineachcountry,includingwithrespecttoanysaleoftheGladbusinessintherelevantcountrythatisnotpartofthesaleoftheentireGladbusiness.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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EXHIBITHJointVentureAccountingPrinciples

GeneralApproach1. Createanaccountingframeworkthattotheextentpossibleissimple,sustainableandaccurate.2. StartwithClorox’sGAAPfinancialstatementsforeachofCloroxandtherelevantsubsidiariesasabasisforpreparingthepro-formafinancialstatements

fortheGladGlobalBusinessineachcountry.3. ConsistentapplicationofCloroxandGladGlobalBusinessaccountingpolicies,principles,andprocesses.

a. AccountingPrinciples.TheaccountingprinciplesofCloroxandtheGladGlobalBusinesswillbethesameinmanyrespects,buttotheextenttheydiffertheseJointVentureAccountingPrincipleswillgovern.AnychangestotheaccountingprinciplesoftheGladGlobalBusinesswillbesubjecttoP&G’sconsentrightspursuanttoSections5.3(a)and9.1(f)ofthisAgreement,andanyotherprovisionsofthisAgreement(orthisExhibit)requiringtheconsentofP&G.TheinitialaccountingprinciplesoftheGladGlobalBusinesswillbethesameasthoseofCloroxanditssubsidiaries,exceptwithrespecttoCloroxcorporateoverheadallocationsandasprovidedinthisExhibitH.

b. AccountingPolicies.TheaccountingpoliciesfortheGladGlobalBusinesscanbechangedasrequiredbyGAAP,therulesandregulationsoftheSecuritiesandExchangeCommissionorstatementsoftheFinancialStandardsAccountingBoard.TheaccountingpoliciescanalsobechangedinconnectionwithchangestoClorox’soverallaccountingpolicies,butinallcasessubjecttoP&G’sconsentrightspursuanttoSections5.3(a)and9.1(f)ofthisAgreementandanyotherprovisionsofthisAgreement(orthisExhibit)requiringtheconsentofP&G.

DirectCostsandAllocatedCosts

4. ThePWCreport,thesourcedocumentsreferencedinthePWCreportandtheothermaterialsunderlyingthePWCReportprovidethebasisforhowindirectcostswereallocatedanddirectcostswereidentifiedasofJune30,2002.TheseallocationsandidentificationswillbeusedduringtheTerm,andchangestothoseallocationsandidentificationsmayonlybemadeconsistentwiththisExhibitandwithExhibitF(CloroxServices).

5. TotheextentanycoststhatareattributabletotheGladGlobalBusinessonanallocatedbasisunderExhibitFaresubsequentlyidentifiedasdirectcostsattributabletotheGladGlobalBusiness,iftheycanbecharged100%totheGladGlobalBusiness,CloroxwillcausethemtobedirectlychargedtotheGladGlobalBusinesstotheextentreasonablypracticable.

6. TotheextentcostsattributabletotheGladGlobalBusinesscannotbedirectlyidentifiedfortheGladGlobalBusinesstheywillbeallocatedonmutuallyagreeduponbasisandinaccordancewiththisExhibitandwithExhibitF,whereapplicable.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

7. TheGladGlobalBusinesswillcontinuouslyworktoimprovetheaccuracyofanyallocatedcostsattributedtotheGladGlobalBusinessonanon-goingbasis.

8. Capitalspendingondirectproperty,plantandequipment(e.g.used100%bytheGladGlobalBusiness)willbedirectcostsoftheGladGlobalBusiness.Capitalspendingonsharedmanufacturing,distributionandproductdevelopmentassetsusedintheGladGlobalBusinesswillbesharedproratabaseduponanallocationprocesstobemutuallyagreedtobyCloroxandP&G.IfthePartiescannotagreeonsuchprocessthematterwillbesubjecttoEscalationand,ifnotresolvedbyEscalation,byarbitrationastotheappropriateprorataallocation.

ReviewsandAudits

9. Allallocationsinallgeographiesforallallocatedcosts(i.e.thosecoststhatcannotbesolelyattributedtotheGladGlobalBusiness)willbereviewedanddocumentedannuallytofacilitateconsistencyanddisclosure.

10. Clorox’sinternalauditfunctionwillreviewtheGladGlobalBusiness’financialsandprocessesinamannerandfrequencyconsistentwithCloroxinternalauditprocedures.FortheUnitedStatesGladBusinessandforeachcountrywherethereisaGladGlobalBusinesswithannualrevenuesinexcessofthegreaterof(x)U.S.$[***]or(y)[***]%oftheGladGlobalBusiness’saggregateannualrevenue(initially,CanadaandAustralia),theseauditswillbeperformedatleastonceevery24months,andthesereportswillbesharedwiththeBoard.

CashFundingPreferences

11. TheGladGlobalBusinessmayfunditsownglobalcashrequirementsinternally(whichmayrequireloansbetweenGladbusinessesindifferentcountries)beforeseekingaParentLoan,andthePartiesexpectthatitwillgenerallyseektofundsuchamountsinternallyratherthanseekingaParentLoan.

BalanceSheetPreparation

12. Foreachcountry,assetsandliabilitiesdirectlyattributabletotheGladGlobalBusinesswillbeincludedonthepro-formabalancesheetoftheGladGlobalBusiness.a. SharedAssetsandLiabilitiesotherthanFixedAssets.WhereassetsandliabilitiesotherthanFixedAssetsarenotsolelyattributabletotheGlad

GlobalBusinessbutaresharedwithotherCloroxbusinessesinthecountry,theywillbeallocatedonafairsharebasistotheGladGlobalBusiness.b. SharedFixedAssets.AnyfixedassetsharedwithaCloroxbusinessotherthantheGladGlobalBusinesswillnotbeallocatedtotheGladGlobal

Businessunlessotherwisemutuallyagreed.ItistheintentionofthePartiesthatanysignificantcapitalinvestmentssharedwithabusinessotherthantheGladGlobalBusinesswillbesharedonaproratabasisbaseduponanallocationprocesstobemutuallyagreedtobyCloroxandP&G.IfthePartiescannotagreeonsuchprocessthematterwillbesubjecttoEscalationand,ifnotresolvedbyEscalation,astotheappropriateprorataallocation.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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c.AllocationMethodologyChanges.AnychangeinallocationmethodologymustbeapprovedbytheP&GBoardmember.13. TotheextentpossibleandpracticalallassetsandliabilitiesheldbyCloroxcorporatebutattributable100%totheGladGlobalBusinesswillbepushed

downtothepro-formabalancesheet.Totheextentthisisnotpossible,anappropriatedisclosurewillbeprovided.14. TotheextenteitherCloroxorP&Gadoptstheaccountingpositionofexpensingitsstockoptions,itwillbeabletoattributetheoptionexpensewith

respecttothepersonnelengagedintheGladbusinesstotheGladGlobalBusinesstotheextentsuchexpenseisadirectcost.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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EXHIBITISUBLICENSEAGREEMENT

ThisSublicenseAgreement(this“Agreement”),datedasofJanuary31,2003(the“EffectiveDate”),byandbetweenTheGladProductsCompany,aDelawarecorporation(“Licensor”),and_________,a__________1(“Licensee”)(each,a“Party”andcollectively,the“Parties”).

WITNESSETH:

WHEREAS,Licensor,Procter&GambleRHDInc.,anOhiocorporation(“P&GSub”),andcertainAffiliatesofLicensorandP&GSub,respectively,haveenteredintoanAmendedandRestatedJointVentureAgreementwithrespecttotheGladGlobalBusiness,datedasofJanuary31,2003(assuchagreementmaybeamended,supplementedorotherwisemodifiedinaccordancewiththetermsthereof,the“JVAgreement”);

WHEREAS,LicensorandP&GSubhaveenteredintoaLicenseAgreement,datedasofJanuary31,2003(assuchagreementmaybeamended,supplementedorotherwisemodifiedinaccordancewiththetermsthereof,the“P&GLicenseAgreement”)providing,amongotherthings,forthelicensebyP&GSubtoLicensorofcertainIntellectualProperty(asdefinedbelow)foruseintheGladGlobalBusiness,subjecttothetermsandconditionsthereof;

WHEREAS,LicensorandLicenseehaveagreedtoenterintothisAgreementproviding,subjecttothetermsandconditionscontainedherein,forthesublicensebyLicensortoLicenseeofcertainIntellectualPropertylicensedtoLicensorbyP&GSubundertheP&GLicenseAgreement,subjecttothetermsandconditionshereofandthereof;

WHEREAS,LicensorandLicenseehaveenteredintoaTechnologyandTrademarkLicenseAgreement,datedasofJanuary31,2003(assuchagreementmaybeamended,supplementedorotherwisemodifiedinaccordancewiththetermsthereof,the“GladLicenseAgreement”)providing,amongotherthings,forthelicensebyLicensortoLicenseeofcertainIntellectualProperty(asdefinedbelow)foruseintheGladGlobalBusiness,subjecttothetermsandconditionsthereof;and

WHEREAS,capitalizedtermsusedbutnotdefinedhereinshall,asthecontextrequires,havethemeaningsetforthineithertheJVAgreementortheP&GLicenseAgreement.

NOW,THEREFORE,forgoodandvaluableconsideration,thereceiptandsufficiencyofwhichisherebyacknowledged,thePartiesagreeasfollows:

____________________

1LicenseAgreementswillbeenteredintowiththeCloroxaffiliatesoperatingtheGladbusinessineachofAustralia,Canada,NewZealand,SouthAfrica,CostaRica,China,HongKong,PhilippinesandKorea.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

Article1.Definitions.

Section1.1Definitions

“Action”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“AdditionalP&GImprovements”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“AdditionalP&GTechnology”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“AffiliateLoans”shallmeanfundsprovidedbyCloroxoritsAffiliatesasloansattributedtotheGladLocalBusinesspursuanttoSection9.3hereof.

“AvailableLocalCashFlow”shallmean,withrespecttoanyFiscalQuarterorotherperiod,withoutregardtoanyRoyaltypayablehereunder,thesumofallcashreceiptsduringsuchFiscalQuarterorotherperiodattributedtotheGladLocalBusinessfromanyandallsourcesotherthanthecashproceedsofanyIndebtedness,plusallReservesoftheGladLocalBusinessasofthecloseofbusinessonthelastdayoftheprecedingFiscalQuarterorotherperiod,plusinterestonsuchReservesatClorox’s30-daycommercialpaperborrowingrate(or,ifCloroxisunabletoobtaincommercialpaper,Clorox’sshorttermcostofborrowing),plusthesumofallroyaltypaymentsmadebyLicenseeundertheGladLicenseAgreementduringsuchperiod,minusallproceedsattributedtotheGladLocalBusinessfromanyInternationalAcquisition,minusallcashdisbursementsattributedtotheGladLocalBusinessforanyandallpurposesduringsuchFiscalQuarterorotherperiod((x)includingloanrepayments(otherthanAffiliateLoans),interestpayments(otherthaninrespectofAffiliateLoans),capitalimprovementsandreplacementsbut(y)excludingdisbursementsfundedbythecashproceedsofanyIndebtednessattributedtotheGladLocalBusiness(otherthanAffiliateLoans)and(z)excludinganycashdividendstoCloroxoritsAffiliatesandanyRoyaltiespaidunderthisAgreement)andareasonableallowanceasofthelastdayofsuchFiscalQuarterorotherperiodforReserves,contingenciesandanticipatedobligationsasdeterminedbytheLicensee,determinedinaccordancewiththeJVAccountingPrinciples.

“CallRight”shallhavethemeaningsetforthintheJVAgreement.

“Clorox”shallmeanTheCloroxCompany,aDelawarecorporation.

“CollaborativeImprovements”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“CollaborativeInventions”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“CollaborativeInventionsProsecutingParty”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“CoreP&GImprovements”shallhavethemeaningsetforthintheP&GLicenseAgreement.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“CoreP&GTechnology”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“DistributableLocalCashFlow”shallmean,withrespecttoanyFiscalQuarterorotherperiod,AvailableLocalCashFlowforsuchFiscalQuarterorotherperiod[***]theamountofAvailableLocalCashFlowrequiredtobeappliedtotherepaymentofAffiliateLoansandaccruedinterestthereoninaccordancewiththeimmediatelysucceedingsentence.TotheextentthereareanyoutstandingAffiliateLoanswithrespecttotheGladLocalBusinessandthereisAvailableLocalCashFlowinanyFiscalQuarter,thenallAvailableLocalCashFlowwillbeimmediatelyappliedtowardssuchoutstandingAffiliateLoansandaccruedandunpaidinterestthereonuntilallAffiliateLoansandaccruedinterestthereonwillhavebeenrepaidinfull.AslongasanyAffiliateLoansremainoutstanding,DistributableLocalCashFlowwillbe[***].

“ExclusiveField”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“ExistingInternationalBalanceSheet”shallhavethemeaningsetforthintheJVAgreement.

“FairMarketValue”shallhavethemeaningsetforthintheJVAgreement.

“Field”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“FiscalQuarter”shallmeaneachthree(3)calendarmonthperiodendingonMarch31,June30,September30andDecember31or,inthecaseofthefirstFiscalQuarterhereunder,theperiodfromthedatehereofthroughMarch31,2003.

“GAAP”shallmeangenerallyacceptedaccountingprinciplesasineffectintheUnitedStates(orsuchotherjurisdictionasmaybespecifiedherein)consistentlyapplied.

“GladLocalBusiness”shallmeantheGladGlobalBusinessconductedbytheLicenseeintheTerritory.

“GladR&DTeam”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“GovernmentalAuthority”shallmeananynationorgovernment,anystateorotherpoliticalsubdivisionthereof,andanyentityexercisingexecutive,legislative,judicial,regulatoryoradministrativefunctionsoforpertainingtogovernment.

“Improvements”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“Indebtedness”shallmeanallobligationsforborrowedmoney,includingguarantees,andallreimbursementobligationsinrespectofoutstandinglettersofcredit(measuredassumingsuchlettersofcreditaredrawninfull).

“Infringe”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“IntellectualProperty”shallhavethemeaningsetforthintheP&GLicenseAgreement.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“InternationalAcquisition”shallmeanthesale,dispositionorothertransfertoaThirdPartyofallorsubstantiallyalloftheequityinterestsofLicenseeorofallorsubstantiallyallthebusiness,assetsandpropertiesofLicenseeusedintheGladLocalBusiness,butexcluding(i)anytransactioninconnectionwithwhichthePutRightortheCallRightisexercised,(ii)anyThird-PartySaleinconnectionwithwhichCloroxexercisesitsrighttocauseasaleand(iii)anytransactioninconnectionwithwhichtheTag-AlongRightisexercised.

“IPAcquisition”shallhavethemeaningsetforthintheJVAgreement.

“JVAccountingPrinciples”shallhavethemeaningsetforthintheJVAgreement.

“KnowHow”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“Liabilities”means,astoanyPerson,alldebts,liabilitiesandobligations,direct,indirect,absoluteorcontingentofsuchPerson,whetheraccrued,vestedorotherwise,whetherknownorunknownandwhetherornotactuallyreflected,orrequiredbyGAAPtobereflected,insuchPerson’sbalancesheet.

“Non–ExclusiveField”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“P&GCompetitiveBusinessLine”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“P&GTechnology”shallmeantheCoreP&GTechnologyandtheAdditionalP&GTechnology.

“Patents”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“Person”shallmeananyindividual,corporation,limitedliabilitycompany,partnership,trust,jointstockcompany,businesstrust,unincorporatedassociation,jointventureorotherformofbusinessorlegalentityorGovernmentalAuthority.

“PrimeRate”shallmeantherateofinterestperannumpubliclyannouncedfromtimetotimebyCitibank,N.A.asitsprimerateineffectatitsprincipalofficeinNewYork,NewYork;eachchangeinthePrimeRatewillbeeffectivefromandincludingthedatesuchchangeispubliclyannouncedasbeingeffective.

“ProsecutingParty”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“PutRight”shallhavethemeaningsetforthintheJVAgreement.

“RelatedAgreements”shallhavethemeaningsetforthintheJVAgreement.

“Reserves”shallmeancashfundssetasidefromgrosscashrevenuesasreserves.Such“Reserves”willbemaintainedinamountsanduponsuchtimingasisreasonablydeemednecessarybytheLicenseetofinanceanyworkingcapitalrequirementsand/ortopaytaxes,insurance,debtservice,repairs,replacements,renewals,capitalexpendituresorothercostsorexpensestobeattributedtotheGladLocalBusinessinaccordancewiththeJVAccountingPrinciplesinthefourFiscalQuartersfollowingthedatesuchReservesarebeingestablishedthatwillnotbefundedfromAvailableLocalCashFlowbasedonthethen-currentfinancialforecastsoftheGladLocalBusiness.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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“ServicesAgreement”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“Tag-AlongRight”shallhavethemeaningsetforthintheJVAgreement.

“TeamInventions”shallhavethemeaningsetforthintheP&GLicenseAgreement.

“Territory”shallmean[theCommonwealthofAustralia][Canada][NewZealand][theRepublicofSouthAfrica][theRepublicofCostaRica][thePeople’sRepublicofChina][HongKong][theRepublicofthePhilippines][theRepublicofKorea].

“ThirdParty”shallhavethemeaningsetforthintheJVAgreement.

“Third-PartySale”shallhavethemeaningsetforthintheJVAgreement.

“Trademarks”shallhavethemeaningsetforthintheP&GLicenseAgreement.

Section1.2OtherDefinitions.

ThefollowingtermsaredefinedintheSectionsindicated:

Term SectionEffectiveDate PreambleExcludedLocalAssets 9.2(b)GladLicenseAgreement RecitalsInternationalAcquisition 7.2(a)JVAgreement RecitalsLicensee PreambleLicensor PreambleNegativeCashFlow 9.3(a)P&GLicenseAgreement RecitalsP&GSub RecitalsParty PreambleRetainedLocalLiabilities 9.2(c)Royalty 9.1(a)TerminationFee 7.2(a)

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Article2.CoreP&GTechnology.

Section2.1Licensee’sLicenseintheField.SubjecttothetermsandconditionsofthisAgreement,LicensorherebygrantstoLicenseearightandlicensetousetheCoreP&GTechnology(includinganyandallCoreP&GImprovementsdeemedtobeCoreP&GTechnologypursuanttotheprovisionsofSection2.3(b)oftheP&GLicenseAgreement)intheFieldthroughouttheTerritory,includingwithoutlimitationtherightandlicense,intheFieldthroughouttheTerritory,to(i)practiceandusethePatentsandKnowHowincludedintheCoreP&GTechnology,(ii)market,make,havemade,sellanddistributeproductsbyoronbehalfofLicenseeinconnectionwiththeGladLocalBusiness,(iii)makeCoreP&GImprovementsand(iv)sublicensesuchrightstotheCoreP&GTechnology.ThelicensesgrantedintheTerritorypursuanttothisSection2.1areexclusiveintheExclusiveFieldandnon-exclusiveintheNon–ExclusiveField.InnoeventshallthelicensegrantedtoLicenseepursuanttothisSection2.1beinterpretedasbeingbroaderinanyrespectthanthelicensegrantedtoLicensorpursuanttoSection2.1oftheP&GLicenseAgreement.

Section2.2CoreP&GImprovements.

(a)Ownership.ThePartiesacknowledgeandagreethat,asbetweenP&G(oritsSubsidiaries)andLicensee(onbehalfofitselfanditsAffiliates),P&G(oritsSubsidiaries)isandshallbethesoleandexclusiveownerofallright,titleandinterest,includinganyandallIntellectualPropertyrights,inandtoanyandallCoreP&GImprovements,whetherdevelopedbyoronbehalfofP&G(oritsSubsidiaries),LicensororLicensee(onbehalfofitselfanditsAffiliates).

(b)Licensee’sNon–ExclusiveLicensetoCertainCoreP&GImprovementsOutsidetheField.Intheeventthat,duringtheTermoftheServicesAgreementthe[***](or,aftertheterminationorexpirationoftheServicesAgreement[***])participatesinthedevelopmentofanyCoreP&GImprovements,then,totheextentsuchCoreP&GImprovementsare[***]CollaborativeImprovementspursuanttotheP&GLicenseAgreement,LicensorherebygrantstoLicenseeanon-exclusiverightandlicensetousesuchCoreP&GImprovementsthroughouttheTerritoryinconnectionwith[***]thatis[***],includingwithoutlimitationtherightandlicense,solelyfortheforegoingpurposes,to(i)practiceandusethePatentsandKnowHowincludedinsuchCoreP&GImprovements,(ii)market,make,havemade,sellanddistributeproductsbyoronbehalfofLicensee,CloroxoritsSubsidiaries,(iii)makeImprovementsbaseduponorderivedfromsuchCoreP&GImprovementsand(iv)sublicensesuchrightssolelytomanufacturersofproductsofLicensee,CloroxoritsSubsidiariesandtoCloroxandSubsidiariesofClorox.InnoeventshallthelicensegrantedtoLicenseepursuanttothisSection2.2(b)beinterpretedasbeingbroaderinanyrespectthanthelicensegrantedtoLicensorpursuanttoSection2.3(c)oftheP&GLicenseAgreement.

(c)ClarificationofLicensee’sRights.Fortheavoidanceofdoubt,(i)anyandallCoreP&GImprovementsdevelopedbyP&GoritsSubsidiarieswithouttheparticipationofthe[***]or[***]([***])and(ii)anyandallCoreP&GImprovementsthatconstitute[***]shallnotbesubjecttothelicensessetforthinSection2.2(b),butshallbesubjecttothelicensessetforthinSection2.1.ThelicensegrantedpursuanttoSection2.2(b)shallonlyapplytothatportionoftheCoreP&GImprovementsthatisincrementaltotheCoreP&GTechnology.ExceptfortheCoreP&GImprovementsthatdonot[***]CollaborativeImprovements,Licensee(onbehalfofitselfanditsAffiliates)shallnothavetherighttouseanyCoreP&GTechnologyoutsideoftheField,irrespectiveofwhetheranyCoreP&GImprovementslicensedpursuanttoSection2.2(b)arebaseduponorderivedfromsuchCoreP&GTechnology.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(d)NoticeofImprovements.IntheeventLicensee(onbehalfofitselforitsAffiliates)developsanyCoreP&GImprovements,LicenseeshallpromptlyprovideLicensorwithwrittennoticethereof.

Article3.AdditionalP&GTechnology.

Section3.1Licensee’sLicenseintheField.SubjecttothetermsandconditionsofthisAgreement,LicensorherebygrantstoLicenseearightandlicensetousetheAdditionalP&GTechnology(includinganyandallP&GImprovementsdeemedtobeAdditionalP&GTechnologypursuanttotheprovisionsoftheP&GLicenseAgreement),andallIntellectualPropertyrightstherein,intheFieldthroughouttheTerritory,includingwithoutlimitationtherightandlicense,intheFieldthroughouttheTerritory,to(i)practicethePatentsandKnowHowincludedintheAdditionalP&GTechnology,(ii)market,make,havemade,sellanddistributeproductsbyoronbehalfofLicenseeinconnectionwiththeGladLocalBusiness,(iii)makeAdditionalP&GImprovementsand(iv)sublicensesuchrightstotheAdditionalP&GTechnology.ThelicensesgrantedintheTerritorypursuanttothisSection3.1areexclusiveintheExclusiveFieldandnon-exclusiveintheNon–ExclusiveField.InnoeventshallthelicensegrantedtoLicenseepursuanttothisSection3.1beinterpretedasbeingbroaderinanyrespectthanthelicensegrantedtoLicensorpursuanttoSection3.1oftheP&GLicenseAgreement.

Section3.2AdditionalP&GImprovements.

(a)Ownership.ThePartiesacknowledgeandagreethat,asbetweenP&G(oritsSubsidiaries)andLicensee(onbehalfofitselfanditsAffiliates),P&G(oritsSubsidiaries)isandshallbethesoleandexclusiveownerofallright,titleandinterest,includingallIntellectualPropertyrights,inandtoanyandallAdditionalP&GImprovements,whetherdevelopedbyoronbehalfofP&G(oritsSubsidiaries),LicensororLicensee(onbehalfofitselfanditsAffiliates).

(b)Licensee’sNon–ExclusiveLicenseOutsidetheField.Intheeventthat,duringtheTermoftheServicesAgreementthe[***](or,aftertheterminationorexpirationoftheServicesAgreement[***])participatesinthedevelopmentofanyAdditionalP&GImprovements,then,totheextentsuchAdditionalP&GImprovementsare[***]CollaborativeImprovementspursuanttotheP&GLicenseAgreement,LicensorherebygrantstoLicenseeanon-exclusiverightandlicensetousesuchAdditionalP&GImprovementsthroughouttheTerritoryinconnection[***]thatis[***],includingwithoutlimitationtherightandlicense,solelyfortheforegoingpurposes,to(i)practiceandusethePatentsandKnowHowincludedinsuchAdditionalP&GImprovements,(ii)market,make,havemade,sellanddistributeproductsbyoronbehalfofLicensee,CloroxoritsSubsidiaries,(iii)makeImprovementsbaseduponorderivedfromsuchAdditionalP&GImprovementsand(iv)sublicensesuchrightssolelytomanufacturersofproductsofLicensee,CloroxoritsSubsidiariesandtoCloroxandSubsidiariesofClorox.InnoeventshallthelicensegrantedtoLicenseepursuanttothisSection3.1(b)beinterpretedasbeingbroaderinanyrespectthanthelicensegrantedtoLicensorpursuanttoSection3.1(c)oftheP&GLicenseAgreement.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(c)ClarificationofLicensee’sRights.Fortheavoidanceofdoubt,(i)anyandallAdditionalP&GImprovementsdevelopedbyP&GoritsSubsidiarieswithouttheparticipationofthe[***]or[***]and(ii)anyandallAdditionalP&GImprovementsthatconstitute[***]shallnotbesubjecttothelicensessetforthinSection3.2(b),butshallbesubjecttothelicensessetforthinSection3.1.ThelicensegrantedpursuanttoSection3.2(b)shallonlyapplytothatportionoftheAdditionalP&GImprovementsthatisincrementaltotheAdditionalP&GTechnology.ExceptfortheAdditionalP&GImprovementsthatdonot[***]CollaborativeImprovements,Licensee(onbehalfofitselfanditsAffiliates)shallnothavetherighttouseanyAdditionalP&GTechnologyoutsideoftheField,irrespectiveofwhetheranyAdditionalP&GImprovementslicensedpursuanttoSection3.2(b)arebaseduponorderivedfromsuchAdditionalP&GTechnology.

(d)NoticeofImprovements.IntheeventLicensee(onbehalfofitselforitsAffiliates)developsanyAdditionalP&GImprovements,LicenseeshallpromptlyprovideLicensorwithwrittennoticethereof.

Section3.3EffectofExpirationorTerminationoftheJVAgreementonSection3.1andSection3.2.IntheeventofanyexpirationorterminationoftheTermundertheJVAgreement,thelicensesgrantedtoLicenseeinSection3.1and,ifapplicable,Section3.2shallautomaticallyterminatetotheextentthelicensetoLicensorterminatesundertheP&GLicenseAgreement.ThisSection3.3shallhavenoeffectonanyAdditionalP&GImprovementsdevelopedbyoronbehalfofLicensororLicenseeaftertheterminationorexpirationoftheTermoftheJVAgreement,whichshallcontinuetoremainsubjecttothelicensesgrantedtoLicenseeinSection3.1andSection3.2.

Article4.TrademarksandOtherIntellectualProperty.

Section4.1LicenseGrant.SubjecttothetermsandconditionsofthisAgreement,LicensorherebygrantstoLicenseeanexclusive(assetforthinSection4.2)rightandlicensetousetheTrademarksintheFieldthroughouttheTerritory,includingwithoutlimitation,therightandlicensetosublicensesuchrightsintheFieldthroughouttheTerritory.InnoeventshallthelicensegrantedtoLicenseepursuanttothisSection4.1beinterpretedasbeingbroaderinanyrespectthanthelicensegrantedtoLicensorpursuanttoSection6.1oftheP&GLicenseAgreement.

Section4.2Exclusivity.ThelicensesgrantedtoLicenseepursuanttoSection4.1areexclusivewithrespecttouseoftheTrademarksintheFieldintheTerritory.

Section4.3TrademarkUse.LicenseeagreestomaintainandpreservethequalityoftheTrademarksandtousetheTrademarksingoodfaithandinadignifiedmanner,consistentwithP&GSub’sandLicensor’shighstandardsofandreputationforquality,andinaccordancewithgoodtrademarkpracticewherevertheTrademarksareused.BothPartiesagreetousetheTrademarksonlyinconnectionwithgoodsandservicesthatpossessacharacterandqualityconsistentwiththereputationandhighstandardsassociatedwithLicensor,P&GSuband/ortheTrademarks.LicenseesagreethatanyandallgoodwillarisingfromLicensee’suseoftheTrademarksshallinuresolelytothebenefitofP&GSub,aslicensortoLicensorundertheP&GLicenseAgreement.UpontherequestofLicensor,Licenseeshall,totheextentreasonable,provideLicensorwitharepresentativesampleofLicensee’suseoftheTrademarks.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section4.4GladBaseIPandGladImprovements.ThePartiesacknowledgeandagreethat,asbetweenLicensorandLicensee,Licensorshallbethesoleandexclusiveownerofallright,titleandinterest,includingallIntellectualPropertyrights,inandtoanyandallGladBaseIPandanyandallGladImprovements.Licenseeherebyacknowledgesandagreesthatitisboundby,anditsrightshereunderareinallrespectssubjectto,thelicensegrantsofLicensorcontainedinArticle4oftheP&GLicenseAgreement.

Section4.5NewInventions.ThePartiesacknowledgeandagreethat,asbetweenLicensorandLicensee,Licensorshallbethesoleandexclusiveownerofallright,titleandinterest,includingallIntellectualPropertyrights,inandtoanyandallNewInventions.Licenseeherebyacknowledgesandagreesthatitisboundby,anditsrightshereunderareinallrespectssubjectto,thelicensegrantsofLicensorcontainedinArticle5oftheP&GLicenseAgreement.Licenseeshallnot,andshallnotauthorizethirdpartiesto,(a)useanyTeamInventionsoutsideoftheFieldintheTerritoryinconnectionwitha[***]thatisa[***]or(b)usetheCollaborativeInventionsintheTerritoryoutsideoftheFieldortomanufactureaproductinsidetheFieldforuse,saleordistributionoutsideoftheFieldorprovideanyinformationorassistancetoanythirdpartyrelatedthereto.

Article5.OtherAgreements.

Section5.1TransfersandEncumbrancesofIntellectualProperty.NothinginthisAgreementshallpreventLicensorfromtransferringanyIntellectualPropertyrightsthatare,inwholeorinpart,subjecttoalicenseorobligationunderthisAgreement.NothinginthisAgreementshallpreventLicensorfromencumberinganyIntellectualPropertyrightsthatare,inwholeorinpart,subjecttoalicenseorobligationunderthisAgreement.

Section5.2IntellectualPropertyProtection.LicenseeagreestonotifyLicensorimmediatelyafteritbecomesawareofanyactualorthreatenedInfringementoftheP&GTechnologyortheTrademarksoranyCollaborativeInventions.LicenseeagreestocooperatefullywiththeProsecutingPartyortheCollaborativeInventionProsecutingParty,asthecasemaybe,duringthecourseofanysuchActionandtofulfillallreasonablerequestsforassistancebytheProsecutingPartyortheCollaborativeInventionProsecutingParty,includingwithoutlimitationagreeingtobejoinedasapartytosuchAction.

Section5.3InformationwithRespecttoGladLocalBusiness.DuringthetermofthisAgreement,LicenseewillprovideLicensorwithcopiesof[***]ofits[***]and[***]forits[***]priortofinalizingsuch[***],and[***]tothethen-currentversions[***],and[***]withrespecttosuch[***].LicenseewillalsoprovideLicensorwithadditionalreportsandotherinformationabouttheGladLocalBusinessasisprovidedtothemembersofitsboardofdirectorsorotherequivalentgoverningbodyonascheduled,periodicbasis,aswellasanyadditionalinformationuponthereasonablerequestofLicensor.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section5.4ConsentRights.LicenseeagreesthatduringthetermofthisAgreement,withoutthepriorconsentofLicensor,itwillnot,andwillcauseitsSubsidiariesnotto,takeanyofthefollowingactions:

(a)theincurrenceorassumptionofanyIndebtednesstobeattributedtotheGladLocalBusinesspursuanttoSection9.2(otherthanAffiliateLoanspursuanttoSection9.3)thatwouldresultintheaggregateoutstandingIndebtednessattributedtotheGladLocalBusinessatthetimesuchIndebtednessisincurredorassumed(otherthanAffiliateLoans)tobeinexcess[***]percent([***]%)ofAvailableLocalCashFlowforthepriorfourFiscalQuarters;

(b)anypurchaseorotheracquisitionofanybusiness,divisionorPersonthatwillbeattributedtotheGladLocalBusinesspursuanttoSection9.2;

(c)anysale,transferorotherdispositioninanysingletransactionorseriesofrelatedtransactionsofanybusiness,divisionorPersonattributedtotheGladLocalBusinesspursuanttoSection9.2,

(d)anysale,transferorotherdispositioninanysingletransactionorseriesofrelatedtransactions,otherthanintheordinarycourseoftheconductoftheGladLocalBusinessofanyassetsattributedtoit,whichassets(x)arenotobsolete,(y)areutilizedinamaterialmannerintheGladLocalBusinessatthetimeofsuchsale,and(z)arenotbeingreplacedwithassetsofcomparableutilityorvaluetotheGladLocalBusiness,providedthatineachcasesuchbusiness,division,Personorassetshaveavaluein[***]of[***]([***]%)ofAvailableLocalCashFlowforthepriorfourFiscalQuarters;

(e)exceptasprovidedintheJVAgreementortheRelatedAgreements,anytransactionwithrespecttotheGladLocalBusinessbetweenLicenseeoranyofitsSubsidiaries,ontheonehand,andCloroxoranyAffiliateofClorox,ontheotherhand,unless(x)(A)suchtransactionis[***]orislessthan$[***]and(B)thetermsofsuchtransactiontobeattributedtotheGladLocalBusinessarenolessfavorablethanthosethatwouldbeobtainedinacomparablearm’slengthtransactionwithathirdpartythatisnotCloroxoranAffiliateofCloroxor(y)suchtransactionisprovidedforpursuanttotheJVAccountingPrinciples;

(f)anyinternalrestructuringofthemethodbywhichthelegalownershipoftheGladLocalBusinessisheldbyLicenseeanditsSubsidiariesthat,basedonthefactsandcircumstancesknownatthetimesuchrestructuringisapproved,hasorwillhaveamaterialadverseeffectonthebusiness,properties,financialcondition,resultsofoperationsorprospectsoftheGladLocalBusiness;

(g)anychangesintheaccountingpoliciesoftheLicenseesoastodifferfromtheJVAccountingPrinciples,exceptasrequiredbyGovernmentalAuthorities;and

(h)theGladLocalBusiness[***].

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Article6.OtherIntellectualPropertyMatters.

Section6.1NoticesandLegends.Licenseeshallapplyoruseallnoticesandlegends,includingpatentmarkings,requiredbyapplicablelaworregulationstopreserveandprotectthevalueandvalidityofanyIntellectualPropertylicensedpursuanttothisAgreement,includingapplyingorusinganynoticesorlegendsreasonablyrequestedbyLicensor.

Section6.2NoContest.Licenseeagreesnottodirectlyorindirectlyquestion,attack,contestorinanyothermannerimpugnanyIntellectualPropertylicensedtoitpursuanttothetermsofthisAgreement,ortheenforceabilityofthisAgreement,includingwithoutlimitation,inanyActioninwhichenforcementofaprovisionofthisAgreementissought;norshallLicenseewillinglybecomeapartyadversetoLicensororP&GSubinanActioninwhichathirdpartyconteststhesame.

Section6.3AssignmentandFurtherAssurances.NotwithstandinganyotherprovisionofthisAgreement,intheeventthatLicenseeisheldto,orbecomestheownerofanyIntellectualPropertythatisintendedtobeownedbyLicensororP&GSubpursuanttothetermsofthisAgreementortheP&GLicenseAgreement,LicenseeherebyassignspermanentlytheentiretyofsuchrightstoLicensororP&GSub,asthecasemaybe,andshall,duringthetermofthisAgreementandafteranyexpirationorterminationhereof,executesuchdocumentsasLicensorandP&GSubreasonablymayrequestfromtimetotimetoensurethatallsuchIntellectualPropertyrightsresideintheproperparty.

Section6.4ReservationofRights.AllIntellectualPropertyrightsnotexpresslygrantedpursuanttothisAgreementarereservedtotheownerofsuchIntellectualProperty.

Article7.TermandTermination.

Section7.1TerminationbyLicensor.TheinitialtermofthisAgreementshallbefive(5)years,whichtermshallberenewableforsuccessivefive(5)yearperiodsthereafterattheoptionoftheLicensoruponwrittennotice.ThetermofthisAgreementmaybeterminatedbyLicensoratanytimeupon[***]noticetoLicensee.ThetermofthisAgreementmaybeterminatedbyLicenseeonlyasprovidedinSection7.2(a)hereof.NofurtherRoyaltyshallaccruehereunderafterthetermination(ordeemedterminationpursuanttoSection7.2)ofthisAgreement.

Section7.2InternationalAcquisitionTransaction.

(a)IntheeventofanInternationalAcquisitioninwhichthereisnoIPAcquisition,LicenseewillbedeemedtohaveterminatedthisAgreement.Uponsuchdeemedtermination,LicenseewillberequiredtopayLicensoraterminationfee(the“TerminationFee”)inanamountequalto[***]([***]%)oftheFairMarketValueoftheGladLocalBusiness.

(b)IntheeventofanInternationalAcquisitioninwhichthereisanIPAcquisition,LicensorwillbedeemedtohaveterminatedthisAgreementandnoTerminationFeeshallbedueorpayable.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Article8.RepresentationsandWarranties.

Section8.1OfBothParties.LicensorandLicenseeeachrepresentsandwarrantstotheotherPartythat,asoftheEffectiveDate:

(a)ThewarrantingPartyisdulyorganizedandvalidlyexistingunderthelawsofthejurisdictionofitsorganization,andhasfullpower,authorityandlegalrighttoexecute,deliverandperformthisAgreement,andhastakenallnecessaryactiontoauthorizetheexecution,deliveryandperformanceofthisAgreement;

(b)ThisAgreementhasbeendulyexecutedanddeliveredbythewarrantingParty.ThisAgreementisalegal,validandbindingobligationofthewarrantingParty,enforceableagainstsuchPartyinaccordancewithitsterms,subjecttotheeffectofanyapplicablebankruptcy,insolvency,reorganization,moratoriumorsimilarlawsaffectingcreditors’rightsandremediesgenerally,andsubject,astoenforceability,totheeffectofgeneralprinciplesofequity(regardlessofwhetherenforcementisconsideredinaproceedingatlaworinequity);and

(c)ThewarrantingPartyisnotsubjecttoanyjudgment,order,injunction,decreeorawardofanycourt,administrativeagencyorgovernmentalbodythatwouldormightinterferewithitsperformanceofanyofitsmaterialobligationshereunder.

Section8.2NoOtherRepresentationsorWarranties.NeitherPartymakesanyrepresentationsorwarrantiesotherthanasexpresslysetforthinthisArticle.

Article9.RoyaltiesandCashFlow.

Section9.1Royalties.

(a)AsconsiderationfortherightsgrantedinArticles2,3and4,LicenseeshallpayLicensoraroyalty(the“Royalty”)onaquarterlybasisinarrearsassetforthbelow:

(i)WithrespecttothefirstfourFiscalQuartersoftheJointVenture,theRoyaltyshallbe[***];

(ii)WithrespecttothefifththrougheighthFiscalQuartersoftheJointVenture,theRoyaltyshallbeanamount[***]to[***]percent([***]%)ofDistributableLocalCashFlow;

(iii)WithrespecttotheninthandallsucceedingFiscalQuartersoftheJointVentureduringthetermofthisAgreement,theRoyaltyshallbeanamount[***]to[***]percent([***]%)ofDistributableLocalCashFlow.

(b)TheRoyaltywithrespecttoanyFiscalQuarterwillbepaidbyLicenseetoLicensorwithinthree(3)BusinessDaysafterdeliveryofthefinancialstatementswithrespecttotheGladLocalBusinessforsuchFiscalQuarterpursuanttotheJVAgreementinimmediatelyavailablefundstotheaccountdesignatedbyLicensortoLicenseeinwriting.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section9.2DeterminingAvailableLocalCashFlow.ForthepurposesofdeterminingAvailableLocalCashFlow:

(a)Fromandafterthedatehereof,subjecttotheJVAccountingPrinciples,thefollowinginterestsandLiabilitiesofLicenseeandotherrelevantsubsidiariesofCloroxwillbeattributedtotheGladLocalBusinessforpurposesofdeterminingAvailableLocalCashFlow,exceptasprovidedinSection9.2(b)belowwithrespecttoExcludedLocalAssetsandSection9.2(c)belowwithrespecttoRetainedLocalLiabilities:

(i)theinterestofLicenseeanditsSubsidiariesonthedatehereofinallofthebusinesses,assets,rightsandpropertiesofLicenseetotheextentandonlytotheextentutilizedinorrelatedtotheGladLocalBusiness;

(ii)subjecttotheJVAccountingPrinciples,theinterestofLicenseeanditsSubsidiariesinanybusiness,asset,rightorpropertyacquiredduringtheTermbyLicenseeoritsSubsidiariestotheextentandonlytotheextentutilizedinorrelatedtotheGladLocalBusiness;

(iii)allLiabilitiesofLicenseeanditsSubsidiariestotheextentandonlytotheextent[(A)reflectedintheExistingInternationalBalanceSheetwithrespecttotheGladLocalBusiness,(B)incurredorassumedbytheGladBusinessintheordinarycourseofbusinessafterthedateofsuchGladBalanceSheetandpriortothedatehereofthatwouldbereflectedascurrentLiabilitiesonabalancesheetoftheGladLocalBusinessasofthedatehereof,butexcludinganycurrentLiabilitiesarisingfromthirdpartylitigationclaims,(C)]2[(A)incurredorassumedbytheGladLocalBusinessintheordinarycourseofbusinesspriortothedatehereofthatwouldbereflectedascurrentLiabilitiesonabalancesheetoftheGladLocalBusiness,butexcludinganycurrentLiabilitiesarisingfromthirdpartylitigationclaims,(B)]3arisingoutoftheconductoftheGladLocalBusinessortheownershiporpossessionofanybusiness,assets,rightsorpropertyusedintheGladLocalBusinessafterthedatehereofor[(D)][(C)]assumedorincurredafterthedatehereofbytheLicenseeandotherSubsidiariesofCloroxinaccordancewiththetermshereofwithrespecttotheGladLocalBusiness,providedthatIndebtednesswillbeattributedtotheGladLocalBusinessonlytotheextentpermittedtobeincurredpursuanttotheprovisionsofSection5.4(a);and

(iv)netincomeandnetlossesandAvailableLocalCashFlowarisinginrespectoftheforegoingandproceedsofanydispositionthereof.

(b)ThefollowinginterestsofLicenseeanditsSubsidiarieswillbeexcludedfromtheGladLocalBusinessandwillnotbeattributedtotheGladLocalBusiness(collectively,the“ExcludedLocalAssets”),andfromandafterthedatehereoftheGladLocalBusinesswillnotincludeanyinterestinanyofthefollowingforpurposesofdeterminingAvailableLocalCashFlow:

(i)allrightsofLicenseeunderthisAgreement;

____________________

2 UsethisversiononlyforAustralia,CanadaandNewZealand.3 UsethisversiononlyforSouthAfrica,CostaRica,China,HongKong,PhilippinesandKorea.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(ii)[allinterestsinanybusiness,asset,rightorpropertysold,transferredorotherwisedisposedofpriortothedatehereofintheordinarycourseoftheGladLocalBusinessandnotinviolationofthetermsoftheJVAgreement;]4

(iii)allcashandcashequivalentsasofthedatehereofotherthanpettycashwithrespecttotheGladLocalBusiness;

(iv)allrefundsorcreditswithrespecttoanyTaxespaidorincurredbyLicensee;

(v)allcapitalstockorotherequityinterestsofLicensee,CloroxandanyotherSubsidiariesofClorox;and

(vi)allrightsoftheLicenseeandotherSubsidiariesofCloroxarisingoutoforinconnectionwithanyRetainedLiabilities,includingwithoutlimitationanycauseofaction,rightofrecovery,rightofset-offorcounterclaim.

(c)Fromandafterthedatehereof,noneofthefollowingLiabilitieswillbeattributedtotheGladLocalBusiness(“RetainedLocalLiabilities”)forpurposesofdeterminingAvailableLocalCashFlow:

(i)anyLiability(A)arisingoutoforrelatingtotheconductoftheGladLocalBusinessortheownershiporpossessionofanybusiness,assets,rightsorpropertyusedintheGladLocalBusinesspriortothedatehereofor(B)assumedorincurredpriortothedatehereofbyLicenseeand/orotherSubsidiariesofClorox,exceptforanyLiabilitiesdescribedin[clause(A)or(B)]5[clause(A)]6ofSection9.2(a)(iii);

(ii)anyLiabilitywithrespecttoincomeTaxesofLicenseeandotherSubsidiariesofClorox;

(iii)anyLiabilityarisingoutoforrelatingtotheExcludedAssets;

(iv)anyLiabilityoftheLicensee,CloroxandotherSubsidiariesofCloroxtotheLicensorarisingoutoforrelatedtoanybreachofthisAgreementoranyRelatedAgreementbyLicensee,CloroxandotherSubsidiariesofClorox,evenifarisingoutoforrelatedtoconductoftheGladLocalBusinessortheownershiporpossessionofanybusiness,asset,rightorpropertyusedintheGladLocalBusinessafterthedatehereof;and

(v)anyLiabilityforwhichLicenseeand/orotherCloroxSubsidiarieshaveotherwiseagreedtobeliableandnothaveattributedtotheGladLocalBusinesspursuanttothisAgreementoranyRelatedAgreement.

____________________

4 IncludeonlyforAustralia,CanadaandNewZealand.5 UseonlyforAustralia,CanadaandNewZealand.6 UseonlyforSouthAfrica,CostaRica,China,HongKong,PhilippinesandKorea.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section9.3AffiliateLoans.

(a)IntheeventthatAvailableCashFlowforanyFiscalQuarterassetforthinthequarterlyfinancialstatementsoftheGladBusinessintheTerritoryforsuchFiscalQuarterisanegativenumber(suchnumber,the“NegativeCashFlow”)thentheamountoftheNegativeCashFlowwillbetreatedasanAffiliateLoan,whichAffiliateLoanwillbedeemedtohavebeenmadeasofthelastdayoftheFiscalQuartertowhichtheNegativeCashFlowrelates.

(b)AllAffiliateLoanswillbearinterestcalculatedontheoutstandingprincipalamountthereofforeachdayfromthedatesuchAffiliateLoanismadeuntilitispaidinfullatPrimeRateplus[***]percent([***]%)perannumpayableonaquarterlybasis,andpaymentswithrespecttoanyAffiliateLoanswillbecreditedfirsttoaccruedinterest.EachAffiliateLoanwillhaveamaturitydateofthedateonwhichthisAgreementisterminated.

Section9.4ForeignCurrencyExchange.

Indeterminingtheamountofroyaltiesandotheramountspayablehereunder,suchamountsshallfirstbedeterminedinthenationalcurrencyinwhichsoldandthenconvertedintoitsequivalentinUnitedStatesDollarsat:(i)therateofUnitedStatesDollarstothenationalcurrencyoftheTerritoryapplicabletothetransferoffundsarisingfromthistypeoftransactionasestablishedbytheexchangecontrolauthoritiesoftheTerritoryforthelastbusinessdayofthecalendarquarterforwhichpaymentismade;or(ii)ifthereisnoapplicableratesoestablished,atthesellingrateforUnitedStatesDollarstotheapplicablenationalcurrencyaspublishedbyleadingcommercialbanksintheTerritory,forthelastbusinessdayofsuchcalendarquarter;or(iii)ifthereisnoratesopublished,atthebuyingratefortheapplicablenationalcurrencytoUnitedStatesDollarsaspublishedbyleadingNewYork,NewYorkbanksforthelastbusinessdayofsuchcalendarquarter.Licenseeshallbearresponsibilityforallexpensesofcurrencyconversionandtransmission.

Article10.MiscellaneousProvisions.

Section10.1Assignment.Licensormayassign,transferorotherwisesublicenseitsrightsunderthisAgreement,inwholeorinpart,toanyotherpartywithoutthepriorwrittenconsentoftheLicensee.Licenseemaynotassign,transferorotherwisesublicenseitsrightsunderthisAgreement,inwholeorinpart,toanyotherpartywithoutthepriorwrittenconsentofLicensor.Anypurportedtransfer,assignmentorsublicenseofthisAgreementortherightsgrantedhereunderthatisnotexpresslypermittedbythisAgreementshallbenullandvoidabinitioandofnoforceoreffect.

Section10.2Arbitration.Anydispute,claimorcontroversyarisingoutoforrelatingtothisAgreementshallbesubjecttothedisputeresolutionproceedingssetforthinSection11.8oftheJVAgreement.

Section10.3ForceMajeure.ShouldeitherPartybepreventedfromperformingitsobligationsunderthisAgreementbyaneventofforcemajeure,suchasanearthquake,typhoon,flood,fire,actofwar,actofthepublicenemy,actofterrorism,actofGodoranyotherunforeseeneventthehappeningandconsequencesofwhichareunpreventableandunavoidable,thepreventedPartyshallnotifytheotherPartybythemostexpedientmeansavailable(fax,telexorexpressmailbeingacceptableinanyevent)withoutanydelay,andwithinfifteen(15)daysthereafterprovidedetailedinformationoftheeventsand,ifapplicableandavailable,avaliddocumentforevidenceissuedbytherelevantpublicnotaryorganizationexplainingthereasonforitsinabilitytoperformordelayintheperformanceofallorpartofthisAgreement.ThePartiesshalldiscussingoodfaith,takingintoaccounttheeffectsoftheforcemajeureandotherunforeseeneventsontheperformanceoftheobligationsunderthisAgreement,whetherto(a)exemptthepreventedPartyfromperformingpartorallofitsobligationsunderthisAgreementor(b)delaytheperformanceoftheaffectedobligationsunderthisAgreement.Intheabsenceofanysuchagreement,noPartyshallbeexcusedfromitsperformancehereunderoncetheeventofforcemajeurehassubsided.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section10.4FurtherAssurances.ThePartiesagreetoexecutesuchfurtherdocumentationandperformsuchfurtheractions,includingtherecordationofsuchdocumentationwithappropriateauthorities,asmaybereasonablyrequestedbytheotherPartyheretotoevidence,effectuateandfurtherthepurposesandintentssetforthinthisAgreement.

Section10.5AmendmentsandWaivers.ThisAgreementmaybeamendedonlybyawritteninstrumentexecutedbybothParties.AnyamendmenteffectedinaccordancewiththeimmediatelyprecedingsentencewillbebindingonallofthePartiestothisAgreement.NofailureordelaybyanyPartyinexercisinganyright,powerorprivilegehereunderwilloperateasawaiverthereofnorwillanysingleorpartialexercisethereofprecludeanyotherorfurtherexercisethereofortheexerciseofanyotherright,powerorprivilege.

Section10.6Notices.AnynoticesorothercommunicationsrequiredorpermittedhereunderwillbegiveninaccordancewiththeprovisionssetforthinSection11.3oftheJVAgreement.

Section10.7Integration.ThisAgreement,theJVAgreement,theotherRelatedAgreementsandthedocumentsreferredtohereinortherein,ordeliveredpursuantheretoorthereto,containtheentireunderstandingofthePartieswithrespecttothesubjectmatterhereofandthereof.Therearenoagreements,representations,warranties,covenantsorundertakingswithrespecttothesubjectmatterhereofandthereofotherthanthoseexpresslysetforthhereinandtherein.ThisAgreementsupersedesallotherprioragreementsandunderstandingsbetweenthepartieswithrespecttothesubjectmatterhereof.

Section10.8Severability.Ifoneormoreoftheprovisions,paragraphs,words,clauses,phrasesorsentencescontainedherein,ortheapplicationthereofinanycircumstances,isheldinvalid,illegalorunenforceableinanyrespectforanyreason,thevalidity,legalityandenforceabilityofanysuchprovision,paragraph,word,clause,phraseorsentenceineveryotherrespectandoftheremainingprovisions,paragraphs,words,clauses,phrasesorsentenceshereofwillnotbeinanywayimpaired,itbeingintendedthatallrights,powersandprivilegesofthepartiesheretowillbeenforceabletothefullestextentpermittedbylaw.

Section10.9Counterparts.ThisAgreementmaybeexecutedintwoormorecounterparts,andbydifferentPartiesonseparatecounterpartseachofwhichwillbedeemedanoriginal,butallofwhichwillconstituteoneandthesameinstrument.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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Section10.10GoverningLaw.ThisAgreementwillbeconstruedinaccordancewith,andtherightsofthePartieswillbegovernedby,thelawsoftheStateofNewYork.

Section10.11InjunctiveRelief.EachofthePartiesacknowledgesandagreesthatpendingtheoutcomeofanyarbitrationproceedingpursuanttoSection11.8oftheJVAgreement,eachofthePartiesheretowillbeentitledtoaninjunction,restrainingorderorotherequitablerelieftopreventbreachesoftheprovisionsofthisAgreement,theJVAgreementortheotherRelatedAgreementsinanycourtofcompetentjurisdictionsolelyforthepurposeofmaintainingthestatusquo,inadditiontoanyotherremedytowhichtheymaybeentitledpursuanttothetermshereof.

Section10.12ThirdPartyBeneficiaries.P&GSubshallbeathirdpartybeneficiaryofthisAgreementandshallhavetherighttoenforcetherightsofLicensorhereundersolelytotheextentthatLicenseebreachesthisAgreementandLicensorfailstoenforcesuchrightswithinthirty(30)daysbeingrequestedbyP&Gtodoso.ExceptasexpresslyprovidedinthisSection10.12,nothinginthisAgreement,expressorimplied,isintendedtoconferuponanyPerson,otherthanthePartiesheretoortheirrespectivesuccessorsandpermittedassigns,anyrights,remedies,benefits,obligationsorliabilitiesofanynaturewhatsoeverunderorbyreasonofthisAgreement.

Section10.13NoAgency.Nothinghereincontainedshallbeconstruedtoconstituteeitherpartyheretoaspartnerorjointventurerorasagentorotherrepresentativeoftheother.Licenseeisnotgrantedanyright,powerorauthoritytoassumeorcreateanyobligation,expressorimplied,onbehalfofLicensororinLicensor’sname,ortomakeanypurchaseforLicensor’saccount,ortobindLicensorinanymannerorthingwhatsoever.Licenseeshallhavenoright,powerorauthoritytoacceptsummonsorlegalprocessforLicensor.Intheiroperationshereunder,LicensorandLicenseeshallbeindependentcontractorsretainingcompletecontroloverandbearingsoleliabilityforeachoftheirownoperationsandemployees.

[Theremainderofthispagehasbeenintentionallyleftblank]

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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INWITNESSWHEREOF,thePartiesheretohaveexecutedthisAgreement,effectiveasofthedatefirstabovewritten.

THEGLADPRODUCTSCOMPANYBy:

Name:Title:

[NAMEOFCLOROXAFFILIATE]

By:Name:Title:

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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EXHIBITJ

TECHNOLOGYANDTRADEMARKLICENSEAGREEMENT

BETWEEN

THEGLADPRODUCTSCOMPANY,ASLICENSOR

AND

______________________,ASLICENSEE

DATED:JANUARY31,2003

TECHNOLOGYANDTRADEMARKLICENSEAGREEMENT

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

ThisAgreementisdatedasofJanuary31,2003between:

(PARTIES)

Name,Address, TelephoneandFacsimile IdentifiedHereinAsTheGladProductsCompany “Licensor”1221BroadwayOakland,California94612UnitedStatesofAmerica

Attention:CorporateSecretaryTelephone:510-271-7000Facsimile:510-271-1652

“Licensee”Attention:DirectorTelephone:Facsimile:

PartiestoAgreement

(RECITALS)

CloroxandClorox’saffiliates,includingLicensor,areengagedinthebusinessofmanufacturing(orcausingtohavemanufactured),distributingandsellingthepremiumqualityconsumerproductssetforthinExhibitA(the“Products”).

LicensoristheownerofthecommonlawrightsandotherrightsintheTrademarksintheTerritoryandtheowneroftheTechnologyintheTerritory.

LicenseedesirestousetheTechnologytomanufacture,produceandpackagetheProducts,andtodistributeandselltheProductsundertheTrademarksintheTerritory.

Subjecttothetermsandconditionscontainedherein,LicensordesirestograntLicenseethelicensessetforthhereinsothatLicenseecanmanufacture,produce,package,distributeandselltheProductsintheTerritoriesbearingtheTrademarks.

LicensorandLicenseearesimultaneouslyinconnectionherewithenteringintoaSublicenseAgreementproviding,subjecttothetermsandconditionscontainedtherein,forthesublicensebyLicensortoLicenseeofcertainIntellectualPropertylicensedtoLicensorbyP&GSubundertheP&GLicenseAgreement.

CertaincapitalizedtermsshallhavethemeaningsetforthinArticle30hereof.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(EXHIBITS)

ThefollowingexhibitsareattachedtothisAgreementandareincorporatedhereinandmadeaparthereof:

Exhibit Content A DescriptionofProducts B DescriptionofTerritoryC DescriptionofRoyaltyD SupersededAgreement(s)

(AGREEMENT)

Thepartiesheretoagreeasfollows:

ARTICLEI.GRANT

(a)LicensorgrantstoLicensee,subjecttotheprovisionsofthisAgreement,arightandlicensetousetheTrademarksintheTerritory,inthemanufacture,packaging,production,distribution,sale,offerforsale,advertisement,promotionoranyothermannerofusewhatsoeveronorinrelationtotheProducts,whichrightshallbeexclusiveintheTerritory,andLicenseeherewithacceptssuchgrantundersuchtermsandconditions.

(b)LicensorgrantstoLicensee,subjecttotheprovisionsofthisAgreement,arightandlicensetousetheTechnologyintheTerritory,inconnectionwiththemanufacture,packaging,production,distribution,sale,offerforsale,advertisement,promotionoforinrelationtotheProducts,whichrightshallbeexclusiveintheTerritory,andLicenseeherewithacceptssuchgrantundersuchtermsandconditions.

(c)Notwithstandingtheforegoing,therightsandlicensesgrantedtoLicenseepursuanttothisArticle1shallbenon-exclusivewithrespecttoanyIntellectualPropertytowhichLicensorhasgrantedalicensetoP&GSubpursuanttotheP&GLicenseAgreement.

ARTICLE2.AMENDMENTSTOEXHIBITA

(a)Licensormay,fromtimetotimebywrittennoticestoLicensee,amendExhibitAattachedheretobyaddingto,revisingand/orupdating,deletingfromorlimitingtheProductscoveredbythisAgreementtoreflectchanges,additions,orrevisionsinitsProductline,thetrademarksassociatedwithsuchProductsoritspracticesorpolicieswithrespecttotheconductofitsbusiness.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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ARTICLE3.ROYALTIES

(a)InconsiderationoftherightsgrantedunderthisAgreement,LicenseeagreestopayLicensorroyaltiesassetforthonExhibitC.

(b)RoyaltiesshallbebasedonLicensee’sbillingprice(setinaccordancewithLicensee’sandLicensor’smutualagreement)onallProductssoldbyLicenseeaftertheeffectivedateofthisAgreement,whethersoldtoadistributorappointedhereunderortoothercustomersofLicensee.AnyProductsgivenawayfreebyLicenseeshallforthepurposesofthisArticlebetreatedasproductssoldatsaidbillingpriceineffectatthedateofshipmentbyLicensee.TheProductssoldbyLicenseehereundershallbeconsideredas“sold”wheninvoicedwhetherornottheamountinvoicediscollectedfromLicensee’sdistributor,orifnotinvoiced,whenshippedordelivered.IntheeventthatanyoftheProductsonwhicharoyaltyhasbeenpaidhereunderbyLicenseearereturnedandacceptedforcredit,LicenseeshallbecreditedwiththeroyaltyalreadypaidbyLicenseeonaccountofsaidProductsagainsttheamountoftheroyaltiessubsequentlyaccruinghereunder.

(c)Theroyaltiespayablehereundershallbepaidquarterlywithinthirty(30)daysfollowingtheendofeachcalendarquarteronanestimatedbasis,withanadjustmentwithinninety(90)daysafterthecloseofLicensee’sfiscalyear.RoyaltiesshallbetransferredinUnitedStatesDollarstoLicensoratitsaddresssetforthaboveorasinstructedbyLicensor.

(d)Indeterminingtheamountofroyaltiesandotheramountspayable,theNetSalesoftheProductsshallfirstbedeterminedinthenationalcurrencyinwhichsoldandthenconvertedintoitsequivalentinUnitedStatesDollarsat:(i)therateofUnitedStatesDollarstothenationalcurrencyoftheTerritoryapplicabletothetransferoffundsarisingfromthistypeoftransactionasestablishedbytheexchangecontrolauthoritiesoftheTerritoryforthelastbusinessdayofthecalendarquarterforwhichpaymentismade;or(ii)ifthereisnoapplicableratesoestablished,atthesellingrateforUnitedStatesDollarstotheapplicablenationalcurrencyaspublishedbyleadingcommercialbanksintheTerritory,forthelastbusinessdayofsuchcalendarquarter;or(iii)ifthereisnoratesopublished,atthebuyingratefortheapplicablenationalcurrencytoUnitedStatesDollarsaspublishedbyleadingNewYork,NewYorkbanksforthelastbusinessdayofsuchcalendarquarter.Licenseeshallbearresponsibilityforallexpensesofcurrencyconversionandtransmission.

(e)RoyaltiesduebutnotpaidtoLicensor,foranyreasonwhatsoever,shallbesegregatedandnotcommingledwithmoniesofLicenseeandshallbehandledinaccordancewithwritteninstructionsfromLicensor.

(f)Licenseefromtimetotimeshallprepareallapplications,reportsandotherdocumentswhichmayberequiredbythegovernmentintheTerritoryinorderthatremittancesmaybemadeinaccordancewiththisAgreement.

(g)Notwithstandingtheabove,noroyaltiesshallbepayableonanyProductspurchasedbyLicenseefromLicensororLicensor’saffiliatedcompaniesandresoldbyLicensee,butthisexceptionshallnotapplyifLicenseechoosestopurchasecomponentsofProductsfromLicensor.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(h)LicenseeagreestokeepaccuratebooksofaccountofitssalesoftheProductsandtoprovideLicensorwithquarterlyroyaltystatementswithinten(10)daysfollowingtheendofeachcalendarquarterinsuchformasLicensormayprescribesettingforth,ataminimum,thefollowinginformationfortheprecedingcalendarquarter:(i)theNetSalesvalueandunitsofLicensee’ssalesoftheProducts,(ii)theamountofanyroyaltypaymentdueLicensor,and(iii)allotherinformationnecessarytoshowthebasisorbasesonwhichsuchpaymenthasbeencomputed.Incasenopaymentisdueforanycalendarquarter,LicenseeshallsoreporttoLicensorwithinten(10)daysfollowingtheendofsuchcalendarquarter.Licenseeagreestopermititsbooksandrecordstobeexaminedatreasonabletimesduringbusinesshourstotheextentnecessarytoverifytheroyaltiestobepaidhereunder,andtopermitcopiesoforextractsfromanybooks,accounts,receipts,papersorotherdocumentsinthepossessionorunderthecontrolofLicenseeandrelatinginwholeorinparttotheProductsmanufacturedandsoldbyLicensee,suchexaminationandcopyingtobemadebyLicensor’sagentsatLicensor’sexpense.Licenseeagreestomaintainsaiddocumentsforaminimumperiodofthree(3)years.

ARTICLE4.QUALITYCONTROL

(a)StandardsofQuality

LicenseeshallusetheTrademarksonlyonProductsthatmeetLicensor’sspecificationsandhighstandardsofqualityandworkmanshipforsuchProducts.

LicenseeundertakestoimplementinfullLicensor’sestablishedproceduresfortheinspectionandqualitycontroloffinishedProductscoveredbythisAgreement.

LicenseeshallgenerallyensurethatallProductsarefreefromanydefectsorotherfaultsindesign,workmanship,andmaterialsandconformwithanypre-productionsamplesapprovedpursuanttoArticle4(b)hereinbelow,andnoProductsthatfailtomeetthequalitystandardsofLicensorshallbeintroducedtothemarket.

AlllabelsandlabelingusedfortheProductsshallhavethepriorwrittenapprovalofLicensor.LicenseeagreestofollowanyinstructionsofLicensorwithrespecttothelabelsfortheProducts,andtomaintainLicensor’shighstandardswithrespecttothequalityoflabelsfortheProducts.

LicensorandLicenseeagreethattheProductsmanufacturedbyLicenseeasofthedateofthisAgreementmeetthequalitystandardsrequiredbyLicensorpursuanttothisAgreement.

(b)ProductSamples

RepresentativesamplesoftheProducts(includingtheirpackaging)initiallyandthereafteratLicensor’srequest,shallbefurnishedbyLicenseetoLicensorataplacedesignatedbyLicensorinsufficientquantitysoastoenableLicensortodeterminethequalityofsuchProducts.LicensorshallrunsuchtestsontheProductsasitmaydeemexpedient,andshalladviseLicenseeinwritingwhetherthequalitystandardsmaintainedbyLicensoraremet.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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IntheeventanyoftheProductsdonotcomplywiththeproductstandardsmaintainedbyLicensor,LicenseeshallatLicensee’sownexpenseundertakeadiligentinquirytodeterminethereasonforsuchnon-conformingProducts,theextentofsuchnon-conformingProducts,andcorrectallsuchnon-conformingProducts,or,ifthiscannotbedone,destroysuchProductsandbearthelosssufferedinthisconnection.LicenseeshallreporttoLicensorthecauseofsuchproblems,theextentofthenon-conformingProductsfound,andLicensee’scorrectionordestructionofsuchProducts.LicenseeshallimplementimmediatelyanyinstructionsreceivedfromLicensorregardingchangesormodificationsintheproductsand/ortheirmanufactureorpackaging.

(c)AccesstoPremises

LicensorshallhavetherighttohaveLicensor’srepresentativesvisitLicensee’sfacilitiesfromtimetotimetoinspecttheProductstoinsurethattheycomplywithLicensor’sspecificationsandstandardsofquality,andLicenseeshallcooperatewithsuchrepresentativeandcomplywithanydirectionsissuedbytherepresentative.

ARTICLE5.SALESEFFORTS

Licenseerepresentsthatitisfullyabletoquantitativelymeetthedemandsof,andisabletosupply,thenationalmarketsfortheProductsintheTerritory.Licenseeshalluseits[***]atalltimesduringthetermofthisAgreementtopromoteandexpandthesalesoftheProducts.Thesizeofthesalesorganization,thecompetenceofthestaffandthequalityofthesaleseffortsshallbesatisfactorytoLicensorandshallmeasureupinallrespectstoLicensor’sstandardsofexcellence.LicenseeandLicensorshall,fromtimetotime,mutuallyconsultwithoneanotherconcerningLicensee’ssalesefforts.

Withinten(10)daysoftheendofeachcalendarquarter,LicenseeshallsubmittoLicensor,insuchdetailasLicensormayrequest,astatementwithrespecttothesalesmadebyLicenseeduringthesalesquarter.EachsuchstatementshallbecertifiedascorrectbyanofficerofLicensee.DuringthetermofthisAgreementamarketingplanshallbemutuallyagreeduponforeachyear.

Licenseealsoagreesto:

(a)CarryandmaintainstocksoftheProductsthat,inLicensor’sopinion,aresufficienttosatisfymarketrequirements.

(b)KeepandmaintaintrueandaccuraterecordsofalltransactionsinvolvingtheProducts,includinginventory,purchasesandsalesandpromotionalexpenditures,whichshallbeavailabletoLicensorforinspection.

(c)Complywithallgovernmentallaws,regulationsandpracticeswithrespecttotheconductofLicensee’sbusiness.

(d)ObeyandcomplywithreasonabledirectionsandinstructionsgivenbyLicensor.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(e)NotmakeanyrepresentationorgiveanywarrantyrelatingtoorinconnectionwiththeProducts,exceptasspecificallyauthorizedbyLicensor.

(f)MaintainacustomercomplaintreportingsystemthatwillbemadeavailabletoLicensor.

(g)SetbillingpricesandanydiscountsfortheProductsatlevelsmutuallyagreeduponinadvancebyLicenseeandLicensor.

(h)NotappointadistributorwithoutLicensor’spreviouswrittenauthorization.

ARTICLE6.PRODUCTREGISTRATIONS

LicenseeshallmakeeveryreasonableefforttoinvestigateandadviseLicensorofallrequiredpermitsorregistrationsoftheProductswithgovernmentalauthoritiesintheTerritory;and,atLicensor’srequest,applyfor,obtainandmaintain,onLicensor’sbehalf,allsuchnecessaryproductregistrationsandpermits.

UponterminationofthisAgreementforanyreason,Licenseeshalltakesuchaction,executesuchassignmentsorconsentsandotherwisedosuchthingsasmaybereasonablynecessarytotransferallproductregistrationsandpermitstoLicensororitsdesignee(s),and/ortootherwisepermitorfacilitatethemanufactureorimportationandsaleoftheProductsintheTerritorybyLicensororanypartyLicensormaydesignate.

ARTICLE7.TECHNOLOGYANDTRADEMARKS

(a)LicenseerecognizesandacknowledgesthatLicensor,orLicensor’saffiliatedcompanies,aretheowners,assigneesorlicenseesintheTerritoryoftheTechnologyandtheTrademarks,includingallcommonlawrightsrelatedtoLicensee’suseoftheTrademarks,andthegoodwillandreputationrelatedtotheTrademarksgeneratedthroughsuchuse,andvariousproprietaryandancillaryrightsrelatedtotheTrademarksandtheProductsincludingtradenames,tradedress,packagedesigns,emblems,designs,copyrightsandanyregistrationsthereof(hereinafterreferredtoasthe“Properties”)usedonvariousProductsand/orinrelatedadvertisingliterature.LicenseeacknowledgesthevalidityoftheTechnology,TrademarksandPropertiesandLicensor’s,and/orLicensor’saffiliatedcompanies’titletoandrightsintheTechnology,TrademarksandthePropertiesandrecognizesthehighvalueofsuchrightstothebusinessandgoodwillofLicensor.LicenseeacknowledgesthatanygoodwillcreatedthroughtheuseoftheTrademarksbyLicenseebelongstoLicensorexclusively.

(b)LicenseeshallnotdisputethevalidityofortitletotheTechnology,TrademarksorPropertiesoropposeanyapplicationbyLicensor,orLicensor’saffiliatedcompanies,toregisterorprotecttheTechnology,TrademarksorthePropertiesandshallnot,directlyorindirectly,takeanyactionwhichmightimpairtheseproprietaryrightsorthebusinessandgoodwillofLicensor.

(c)Licenseewillnot,directlyorindirectly,seektoregisteranyimitationortranslationoftheTrademarksortheProperties.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(d)LicenseeshallnotuseanyoftheTechnology,TrademarksorthePropertiesexceptasapprovedbyLicensor.Licenseeshallinnowaymodify,addtooromitanyoftheTrademarksorthePropertiesappliedtotheProducts,advertisingorpromotionalmaterialpursuanttothisAgreement,withoutthewrittenconsentofLicensor.LicenseeshallnotuseinconnectionwiththesaleoforanycommercialdealingwithanyoftheProductsanyothertrademark,orothermatterwhichisconfusinglyordeceptivelysimilartoanyoftheTrademarksorProperties.

(e)Licensee,withoutthewrittenconsentofLicensor,shallnotuseanyofLicensee’sowntrademarksortradenamesinmarketingtheProducts.ThisprovisionshallnotrestrictLicenseeinthenormaluseofLicensee’sregularbusinessname.LicenseeshallnotusetheTrademarksorvariationsthereofinLicensee’sregisteredtradeorcorporatename.

(f)ShouldLicenseebecomeawareofanytradepracticesoractionsorthreatenedactionsbythirdpartiesthatmayinjurethebusinesswhichLicenseeconductspursuanttothisAgreementorthebusinessorgoodwillofLicensorincludinginfringement,misappropriation,impairment,dilution,violationand/orpassingoff(“Infringement”)oftheTechnology,TrademarksortheProperties,fulldetailsofthesameshallbepromptlysuppliedtoLicensor.LicenseeshallinnoeventtakeanyactiontopreventorremedysuchInfringementortradepracticeswithoutLicensor’swrittenauthorization.LicensororanypartiesauthorizedbyLicensorshallhavethesolerighttotakeordirectsuchactionasLicensormaydeemproperagainstsuchparties.LicenseeshalljoinwithLicensorintakingactionagainstsuchpartiesifLicensorsorequests.

(g)Licensorand/orLicensor’saffiliatedcompanieswillpoliceandprotecttheTechnologyandTrademarksintheTerritorytothebestofLicensor’sabilityandassumethecostsofprosecutinginfringersinthosecases,whichintheopinionofLicensor’slegalcounsel,meritlegalaction.LicensorshallrenewandmaintaintheTechnologyandTrademarksaccordingtothelegalrequirementsoftheTerritory.LicenseeshallassistLicensorinpolicing,protecting,renewingandmaintainingtheTechnologyandTrademarksby(i)providingsamplesofProducts,(ii)providingevidenceofuse,(iii)providingLicensorwithguidanceandassistanceastothelegalrequirementsoftheTerritoryand(iv)executingdocumentsandtakingsuchotheractionsasmayberequiredtorenewandmaintainorotherwiseeffectLicensor’sownershipoftheTechnologyandTrademarks.

(h)UponexpirationorterminationofthisAgreementforanyreason,Licensee,atLicensee’sownexpense,shallforthwithremoveallreferencestoLicensororanyoftheTrademarksorPropertiesoranywork,design,marking,sloganorlegendassociatedtherewithfromthebusinesspremises,plant,products,materials,suppliesandequipmentofLicensee,andfromallbusinesspaper,stationeryandadvertisingusedormaintainedbyLicensee(includingtelephoneandbusinesslistings),andLicenseeshallnotthereafterholdforthinanymannerthatLicenseehasaconnectionwithLicensor,theTrademarks,PropertiesortheProducts.LicenseethereaftershallnotusetheTrademarksoranytermsordevicessimilartotheTrademarks.

(i)Licenseeshallapplyoruseallnoticesandlegends,includingpatentmarkings,requiredbyapplicablelaworregulationstopreserveandprotectthevalueandvalidityoftheTechnologyandTrademarkslicensedpursuanttothisAgreement,includingapplyingorusinganynoticesorlegendsreasonablyrequestedbyLicensor.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(j)IntheeventLicenseedevelopsanyimprovementstotheTechnology,LicenseeshallpromptlyprovideLicensorwithwrittennoticethereof.

(k)LicenseeagreesthatLicensoristhesoleandexclusiveowneroftheTechnologyandtheTrademarksandthatnothinginthisAgreementorotherwiseshallconferonLicenseeanyright,titleorinterestinortotheTechnologyorTrademarksotherthanasexpresslysetforthinthisAgreement.IntheeventthatLicenseeisheldto,orbecomestheownerofanyTechnology,TrademarksorPropertiesthatisintendedtobeownedbyLicensorpursuanttothetermsofthisAgreement,LicenseeherebyassignspermanentlytheentiretyofsuchrightstoLicensorandshall,duringthetermofthisAgreementandafteranyexpirationorterminationhereof,executesuchdocumentsasLicensorreasonablymayrequestfromtimetotimetoensurethatallsuchrightsresideinLicensor.

(l)NothinginthisAgreementshallpreventLicensorfromtransferringorencumberingtheTechnologyorTrademarksthataresubjecttoalicenseorobligationunderthisAgreement.

ARTICLE8.WARRANTIESANDDISCLAIMERS

NeitherpartywarrantstotheotherthattheProductsthatLicenseemaymanufactureorsellpursuanttothisAgreementwillnotInfringeanyIntellectualPropertyortrademarkrightpossessedbyanythirdparties.

ARTICLE9.COMPETITION

InordertoensureLicensee’sundividedattentionandmaximumeffortsonbehalfoftheProducts,Licenseeagreesnottomanufacture,market,sellordistributeproductswhichwouldcompetewiththeProductsduringthetermofthisAgreement.

ARTICLE10.EFFECTIVENESSANDTERMOFAGREEMENT

ThisAgreementshallbeeffectiveasofthedatefirstwrittenabove.TheinitialtermofthisAgreementshallbefive(5)years,whichtermshallberenewableforsuccessivefive(5)yearperiodsthereafterattheoptionoftheLicensoruponwrittennotice.ThetermofthisAgreementmaybeterminatedbyLicensoratanytimeupon[***]noticetoLicensee.ThetermofthisAgreementmaybeterminatedbyLicenseeonlyasprovidedinArticle11(a)hereof.NofurtherRoyaltyshallaccruehereunderafterthetermination(ordeemedterminationpursuanttoArticle11)ofthisAgreement.

ARTICLE11.INTERNATIONALACQUISITIONTRANSACTION

(e)IntheeventofanInternationalAcquisitioninwhichthereisnoIPAcquisition,LicenseewillbedeemedtohaveterminatedthisAgreement.Uponsuchdeemedtermination,LicenseewillberequiredtopayLicensoraterminationfee(the“TerminationFee”)inanamount[***]to[***]percent([***]%)oftheFairMarketValueoftheGladLocalBusiness

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(f)IntheeventofanInternationalAcquisitioninwhichthereisanIPAcquisition,LicensorwillbedeemedtohaveterminatedthisAgreementandnoTerminationFeeshallbedueorpayable.

ARTICLE12.OBLIGATIONSUPONTERMINATION

IntheeventofanyexpirationorterminationofthisAgreement:

(a)LicenseewillreturntoLicensor,labels,packagingandadvertisingorotherpromotionalmaterialsrelatingtoanyoftheProducts.LicensoratLicensor’ssoleoptionshallhavetherighttotakebackatthelowerofmarketpriceorincrementalcost,anysuchlabels,printsandliterature,andLicenseeshallbeobligedtoreturntoLicensorwithoutchargeallmaterialsreceivedwithoutcost.

(b)Licenseeshallhavetheobligationtocompletethemanufactureofallgoodsinprocess.LicensororLicensor’sdesignee,atLicensor’ssoleoption,shallhavetherighttopurchaseallrawmaterials,packagingmaterialsandfinishedgoodsstillinstockafterfillingoutstandingorderstothedateoftermination.ThepricepayabletoLicenseewithrespecttosuchmaterialsandfinishedgoodsshallbethelowerofmarketpriceorLicensee’sincrementalcost.LicensorinLicensor’ssolediscretionmayallowLicenseetosellfinishedgoodsstillinstockafterthefillingofoutstandingorders,accordingtothedistributionandpricingschedulethatwasineffectforthequarterpriortotermination.

(c)LicenseeagreesthatfromthedateofexpirationorterminationofthisAgreement,noneoftheTechnologyorTrademarksoranytermsordevicessimilarthereto,ortothePropertiesshallbeusedbyLicensee.Licenseeshallassoonasitispractical,ensurethatanyreferencetoanyTrademarksonitsproducts,premises,vehiclesordocumentsareremoved.UponterminationorexpirationofthisAgreementLicenseeshallimmediatelyceasealluseoftheTechnologyand,atLicensor’option,promptly,return,deleteordestroyalltangibleembodimentsoftheTechnologyinLicensee’spossessionorcontrol.

(d)Allroyalties,feesandotheramountspayablebyLicenseetoLicensorthroughthedateofsuchexpirationorterminationshallbecomeimmediatelydue.

ARTICLE13.INDEMNITY

(a)LicenseeagreestoindemnifyandholdLicensorharmlessfromandagainstanyloss,claim,liability,action,causeofactionordamages(includingallcostsandattorneys’fees)foranyinjuryordamagesoccurringtothirdparties,ortheirproperty,inconnectionwiththeProductsmanufacturedorsoldbyLicenseeandforsuchpurposetomaintaininsurance,ifsuchisavailablewithintheTerritory,forthebenefitofLicenseeandLicensorwithsuchcompanyorcompaniesandcontainingsuchlimitsasaresatisfactorytoLicensor.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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(b)LicenseeshallalsoindemnifyandholdLicensorharmlessfromanyliability,loss,damageorexpense,includingreasonableattorneys’feesandexpenses,arisingoutofanyclaimorsuitinvolvingthemanufacture,labeling,sale,distributionoradvertisementoftheProductsbyLicenseeinviolationofanylaworregulationoftheTerritoryorcountryofexport.

(c)LicensorshallnotifyLicenseeofanysuchclaimorsuit,andLicenseeshallhavetherighttodefenditselfand,ifLicensorconsents,alsodefendLicensorthroughcounselofLicensee’schoiceprovidedsuchcounselisacceptabletoLicensor.LicensorshallalsobefreetoretainLicensor’sowncounsel,inwhichcaseLicensor’sreasonableattorneys’feesandexpensesshallbecoveredbytheindemnitysetforthinthisArticle13.

ARTICLE14.TAXES

LicenseeagreestoprocureatLicensee’ssolecostanyrequiredregistrationsorgovernmentalapprovalofthisAgreementandtopayanyandallstamp,registrationandimporttaxesandallothertaxesanddutieswhichmaybeleviedonLicensorand/orLicenseebygovernmentalentitieswithintheTerritory.Anytaxes,feesorotherchargesimposedbyanygovernmentoranystateintheTerritoryuponthisAgreementoruponthepaymentstobemadetoLicensorshallbepaidbyLicensee,bothatminimumratesandfinalcomputations,forandonbehalfofLicensorandsuchcostsmaynotbedeductedbyLicenseefromroyaltiesastheybecomedue.Except,however,LicenseemaywithholdfromamountspayableunderthisAgreementthenonresidentincometaxofLicensor,ifrequiredbylaw.LicenseeshallfurnishtoLicensoralloriginaltaxreceiptsorotherdocumentationnecessaryforLicensortoverifypaymentofanytax,fee,orchargeandtoreceiveaforeigntaxcreditortaxdeduction.Ifsuchnonresidentincometaxesarewithheld,LicenseewillsupplyLicensorwithofficialgovernmentreceiptswhichindicatetheamountoftaxanddatethetaxwaspaid.

ARTICLE15.FORCEMAJEURE

ThefailurebyeitherpartytoperformanytermofthisAgreementwhencausedbyorresultingfromfire,floods,embargoes,governmentregulations,war,actsofwar(whetherwarbedeclaredornot),insurrections,riots,civilcommotions,strikes,lockouts,jobactions,ActsofGodoranyothercausebeyondthecontrolofsuchparty,andwhichisaresultthereof,shallnotconstituteadefaultorbreachunderanytermofthisAgreementunlessthesaidpartyfailstoresumenormaloperationswithinonehundredeighty(180)days,inwhichcasetheotherpartymaydeclareadefault.

ARTICLE16.ASSIGNMENTANDSUBLICENSES

Licenseemaynotassign,pledge,hypothecate,giveasecurityinterestin,encumber,orotherwisetransferanyinterestinthisAgreementoritsobligations,rights,claims,interestsormoniesdueortobecomeduehereunder,oranymaterialsbearinganyoftheTrademarks,withoutthepriorwrittenconsentofLicensor.ThisAgreementshallbebindinguponandinuretothebenefitofthepartiesheretoandtheirsuccessorsandpermittedassigns.Notwithstandingtheforegoing,subjecttothetermsandconditionsofthisAgreement,LicenseemaysublicensetheTechnologyandTrademarkstoonlythosepersonsorentitiesthatagreetoabidebyandupholdthetermsandconditionsofthisAgreement(includingpaymentofallroyaltiesandotherfeesrelatedtotheuseoftheTechnologyandtheTrademarkshereunder).

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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ARTICLE17.NOAGENCY

Nothinghereincontainedshallbeconstruedtoconstituteeitherpartyheretoaspartnerorjointventurerorasagentorotherrepresentativeoftheother.Licenseeisnotgrantedanyright,powerorauthoritytoassumeorcreateanyobligation,expressorimplied,onbehalfofLicensororinLicensor’sname,ortomakeanypurchaseforLicensor’saccount,ortobindLicensorinanymannerorthingwhatsoever.Licenseeshallhavenoright,powerorauthoritytoacceptsummonsorlegalprocessforLicensor.Intheiroperationshereunder,LicensorandLicenseeshallbeindependentcontractorsretainingcompletecontroloverandbearingsoleliabilityforeachoftheirownoperationsandemployees.

ARTICLE18.AMENDMENTS

ThisAgreementshallnotbechanged,modified,abrogatedorsupersededunlessbyawritingsignedbybothparties.

ARTICLE19.SEVERABILITY

ShouldanypartorprovisionofthisAgreementbeheldunenforceableorinconflictwiththelawofanyjurisdiction,thevalidityoftheremainingpartsorprovisionsshallnotbeaffectedbysuchholdingunlessthepartorprovisionwhichisheldtobeunenforceableorinconflictwiththelawofthejurisdictionisanessentialtermofthecontractinwhicheventthecontractshallbedeemedterminated.

ARTICLE20.CAPTIONS

ThetitlesoftheArticlesofthisAgreementareintendedonlytofacilitatereferenceandshallnotbeusedininterpretingthemeaningofthisAgreement.

ARTICLE21.TRANSLATION

ShouldthisAgreementbetranslatedintoanyotherlanguagebutEnglish,theEnglishversionshallremaincontrollingandprevailonanyquestionofinterpretationorotherwise.

ARTICLE22.NOWAIVER

NoneofthetermsofthisAgreementmaybewaivedexceptbyawritingsignedbythewaivingparty.Thefailureofeitherpartyheretotoenforce,orthedelaybyeitherpartyinenforcing,anyofitsrightsunderthisAgreementshallnotbedeemedacontinuingwaiveroramodificationthereofandeitherpartymay,withinthetimeprovidedbyapplicablelaw,commenceappropriatelegalactiontoenforceanyorallofsuchrights.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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ARTICLE23.GOVERNINGLAW

ThisAgreementshallbegovernedandconstruedinaccordancewiththelawsoftheStateofCalifornia,UnitedStatesofAmericaandthelawsoftheUnitedStatesofAmericaasappliedtherein,inbothcaseswithoutregardtotheconflictoflawprinciplesthereof.TheactsorlawsofaforeigngovernmentshallnotbeconsideredforcemajeureorotherwiseexcuseadeparturefromthisAgreement.ItistheintentofthepartiesthattheirrelationsunderthisAgreementbegovernedexclusivelyasspecifiedherein.AnycontroversyorclaimarisingoutoforrelatingtothisAgreement,orthebreachthereof,shallbesettledbybindingarbitrationinOakland/SanFrancisco,CaliforniainaccordancewiththeCommercialArbitrationRulesoftheAmericanArbitrationAssociation,andjudgmentupontheawardmaybeenteredinanycourthavingjurisdictionthereof.Thepartiesherebywaiveanyclaimwhatsoeverthatanysuchcontroversyorclaimisnonarbitrableonthegroundsofpublicpolicy.Thearbitrator(s)shallhavethepowerto:(1)ordersuchdiscoveryas,inthearbitrator(s)discretion,shallcontributetoajustandspeedyresolutionofthecontroversyorclaimandtoimposesanctionsforbreachesofsuchorders;(2)awardattorneys’feesandcoststoapartyprevailingonacontroversyorclaimorpartthereof;and(3)awardpreliminaryandfinalinjunctionsandawardsofspecificperformance,itbeingtheintentofthepartiesthatsuchreliefbegrantedliberally.AnyarbitratorshallbefluentintheEnglishlanguageandfamiliarwiththeconsumerproductsindustry.ThearbitrationproceedingwillbeheldintheEnglishlanguageandallopinionsandawardswillbeissuedinEnglish.Thecostsofthearbitrationandenforcementoftheawardshallbeanissuedeterminedbythearbitrator(s).Eachofthepartiesheretowillbeentitledtoaninjunction,restrainingorderorotherequitablerelieftopreventbreachesoftheprovisionsofthisAgreement.

ARTICLE24.LOCALLAWSANDSTANDARDSOFBUSINESSCONDUCT

(a)LicenseeacknowledgesLicensee’sresponsibilitiesunderthelocallawsandregulationsapplicabletoLicensee’soperationunderthisAgreementandwillalwaysconductLicensee’sbusinessunderthisAgreementinamannermeetingthehighestethicalstandards.

(b)AnyfailureofLicenseetoabidebythisArticlethatbringsharmorinjurytothename,goodwill,orreputationofLicensororLicensor’saffiliatedcompanies,theTrademarks,ortheProductsshallbegroundsforterminationofthisAgreementbyLicensor.

ARTICLE25.RECORDATIONOFAGREEMENT

ThisAgreement,oranextracthereof,mayberecordedatthediscretionofLicensorintheproperofficesandregistriesintheTerritoryandLicenseeshallexecuteanydocumentsconsideredbyLicensortobenecessarytoeffectsuchrecordation.IntheeventoftheterminationofthisAgreement,LicenseeshallexecuteanydocumentsconsideredbyLicensornecessarytoeffectcancellationoftherecordationofthisAgreement,andLicensormaycancelsuchrecordationwithouttheconsentofLicensee.

ARTICLE26.NOTICES

Anynotice,offerordemanddesiredorrequiredtobegivenhereundershallbeinwritinganddeemedgivenwhenpersonallydeliveredorsentbyfirstclassregisteredorcertifiedairmailorbyfacsimileaddressedasrespectivelysetforthaboveunder“PARTIES”,ortosuchotheraddressasanypartyshallhavepreviouslydesignatedbysuchanotice.Anynoticesodeliveredpersonallyshallbedeemedtobereceivedonthedateofreceipteddelivery,anynoticegivenbyregisteredairmailshallbedeemedtohavebeenreceived5daysafterthesamehasbeenposted,andanyfacsimileshallbedeemedtobereceivedonthebusinessdayfollowingthedateofthefacsimile.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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ARTICLE27.INTEGRATION

ThisAgreementcontainstheentireunderstandingofthepartieswithrespecttothesubjectmatterhereof.Therearenoagreements,representations,warranties,covenantsorundertakingswithrespecttothesubjectmatterhereofandthereofotherthanthoseexpresslysetforthherein.ThisAgreementsupersedesallotherprioragreementsandunderstandingsbetweenthepartieswithrespecttothesubjectmatterhereof,includingtheagreements,ifany,setforthonExhibitD,whichshall,upontheexecutionofthisAgreement,terminateandbeofnofurtherforceoreffect.

ARTICLE28.THIRDPARTYBENEFICIARIES

P&GSubshallbeathirdpartybeneficiaryofthisAgreementandshallhavetherighttoenforcetherightsofLicensorhereundersolelytotheextentthatLicenseebreachesthisAgreementandLicensorfailstoenforcesuchrightswithinthirty(30)daysbeingrequestedbyP&Gtodoso.ExceptasexpresslyprovidedinthisArticle28,nothinginthisAgreement,expressorimplied,isintendedtoconferuponanyperson,otherthanthepartiesheretoortheirrespectivesuccessorsandpermittedassigns,anyrights,remedies,benefits,obligationsorliabilitiesofanynaturewhatsoeverunderorbyreasonofthisAgreement.

ARTICLE29.COUNTERPARTS

ThisAgreementmaybeexecutedinanynumberofcounterparts,andbythedifferentpartiesonseparatecounterpartseachofwhichwillbedeemedanoriginal,butallofwhichwillconstituteoneandthesameinstrument.

ARTICLE30.DEFINITIONS

Thefollowingterms,asusedinthisAgreement,shallhavethedefinitionssetforthinthisArticle30andconstitutepartofthetermsandconditionsofthisAgreement:

“Affiliate”shallmeananyentitythatisadirectorindirectsubsidiaryofaparty,includinganyentitythatisatleast[***]%owned,directlyorindirectly,byaparty,oranyentitythatowns,directlyorindirectly,atleast[***]%ofaparty,orotherwisecontrolsoriscontrolledbyaparty,orwhichisajointventurewhichisatleast[***]%ownedbyapartyoranotheraffiliateofaparty.

“CallRight”shallhavethemeaningsetforthintheJVAgreement.

“Clorox”shallmeanTheCloroxCompany,aDelawarecorporation.

“FairMarketValue”shallhavethemeaningsetforthintheJVAgreement.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

14

“GladGlobalBusiness”shallhavethemeaningsetforthintheJVAgreement.

“GladLocalBusiness”shallmeantheGladGlobalBusinessconductedbytheLicenseeintheTerritory.

“Infringement”shallhavethemeaningsetforthinArticle7(f)hereof.

“IntellectualProperty”shallmeananyandallintellectualproperty,including,withoutlimitation,patents,copyrights,software,tradesecrets,technology,inventions,specifications,know-how,processes,formulae,productdescriptionsandothertechnicalorproprietaryinformation.

“InternationalAcquisition”shallmeanthesale,dispositionorothertransfertoaThirdPartyofallorsubstantiallyalloftheequityinterestsofLicenseeorofallorsubstantiallyallthebusiness,assetsandpropertiesofLicenseeusedintheGladLocalBusiness,butexcluding(i)anytransactioninconnectionwithwhichthePutRightortheCallRightisexercised,(ii)anyThird-PartySaleinconnectionwithwhichCloroxexercisesitsrighttocauseasaleand(iii)anytransactioninconnectionwithwhichtheTag-AlongRightisexercised.

“IPAcquisition”shallhavethemeaningsetforthintheJVAgreement.

“JVAgreement”shallmeantheAmendedandRestatedJointVentureAgreement,datedasofJanuary31,2003,betweenLicensor,P&GSubandcertainoftheirrespectiveAffiliates,assuchagreementmaybeamended,supplementedorotherwisemodifiedinaccordancewiththetermsthereof.

“P&GLicenseAgreement”shallmeantheLicenseAgreement,datedasofJanuary31,2003,betweenP&GSubandLicensor,assuchagreementmaybeamended,supplementedorotherwisemodifiedinaccordancewiththetermsthereof.

“P&GSub”shallmeanProcter&GambleRHDInc.,anOhiocorporation.

“PriorAgreement”shallhavethemeaningsetforthinArticle27hereof.

“Products”shallmeantheproductssetforthinExhibitA,asmaybeamendedfromtimetotimepursuanttoArticle2herein.

“Properties”shallhavethemeaningsetforthinArticle7(a)hereof.

“PutRight”shallhavethemeaningsetforthintheJVAgreement.

“Tag-AlongRight”shallhavethemeaningsetforthintheJVAgreement.

“Technology”shallmeananyandallIntellectualPropertyownedorheldbyLicensor,fromtimetotime,whichLicensorhastherighttolicenseorsublicensetoLicensee,thatisusedorusefulinconnectionwiththemanufacture,packaging,production,distribution,sale,offerforsale,advertisement,promotionoforinrelationtotheProducts,expresslyexcludingtheIntellectualPropertylicensedtoLicensorundertheP&GLicenseAgreement.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

15

“TerminationFee”shallhavethemeaningsetforthinArticle11(a)hereof.

“Territory”shallmeantheterritoriessetforthinExhibitB.

“Third-PartySale”shallhavethemeaningsetforthintheJVAgreement.

“Trademarks”shallmeananyandalltrademarks,servicemarks,tradenames,brandnames,corporatenames,domainnames,URLs,logosandtradedress,togetherwiththegoodwillsymbolizedbyanyoftheforegoingandallcommonlawrightsrelatingtoanyoftheforegoing,ownedorheldbyLicensor,fromtimetotime,whichLicensorhastherighttolicenseorsublicensetoLicensee,thatisusedorusefulinthemanufacture,packaging,production,distribution,sale,offerforsale,advertisement,promotionoranyothermannerofusewhatsoeveronorinrelationtotheProducts,expresslyexcludinganytrademarks,servicemarks,tradenames,brandnames,corporatenames,domainnames,URLs,logosortradedresslicensedtoLicensorundertheP&GLicenseAgreement.

INWITNESSWHEREOF,thisAgreementhasbeenexecutedasofthedatefirstabovewritten.

(“Licensor”) (“Licensee”)

THEGLADPRODUCTSCOMPANY

By: By:

Name: Name

Title: Title

SignaturePage

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

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EXHIBITA

DESCRIPTIONOFPRODUCTS

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

EXHIBITB

DESCRIPTIONOFTERRITORY

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

EXHIBITC

DESCRIPTIONOFROYALTY

LicenseeagreestopayLicensorroyaltiesasfollows:

ForProductssoldbearingtheTrademarks:

“NetSales”shallbedefinedasthegrossamountbilledfortheProductslesstradeorquantitydiscounts,creditsorallowances.

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

EXHIBITD

SUPERSEDEDAGREEMENT(S)

THEPORTIONSOFTHISAGREEMENTIDENTIFIEDBYTHESYMBOL“[***]”HAVEBEENOMITTEDANDFILEDSEPARATELYWITHTHESECURITIESANDEXCHANGECOMMISSIONPURSUANTTOACONFIDENTIALTREATMENTREQUEST.

Exhibit21

NameofCompany JurisdictionofIncorporation1221Olux,LLC Delaware6570DonlonGroup,LLC DelawareA&MProductsManufacturingCompany DelawareAndoverProperties,Inc. DelawareAplicare,Inc. ConnecticutBeesInternationalCorporation JapanBritaCanadaCorporation NovaScotiaBritaCanadaHoldingsCorporation NovaScotiaBritaGP OntarioBritaLP OntarioBritaManufacturingCompany DelawareTheBritaProductsCompany DelawareBGP(Switzerland)S.a.r.l. SwitzerlandBurt’sBees,Inc. DelawareBurt'sBeesAustraliaPtyLtd. AustraliaBurt’sBeesInternationalHoldings DelawareBurt’sBeesLicensing,LLC DelawareTheBurt’sBeesProductsCompany DelawareCaltechIndustries,Inc. MichiganCBee(Europe)Limited UnitedKingdomChesapeakeAssuranceLimited HawaiiCloroxAfrica(Proprietary)Ltd. SouthAfricaCloroxAfricaHoldings(Proprietary)Ltd. SouthAfricaCloroxArgentinaS.A. ArgentinaCloroxAustraliaPty.Ltd. AustraliaCloroxBrazilHoldingsLLC DelawareClorox(CaymanIslands)Ltd. CaymanIslandsCloroxChileS.A. ChileCloroxChina(Guangzhou)Ltd. Guangzhou,P.R.C.CloroxCommercialCompany DelawareTheCloroxCompanyofCanadaLtd. Canada(Federal)CloroxdeCentroAmerica,S.A. CostaRicaCloroxdeColombiaS.A. ColombiaCloroxdeMexico,S.A.deC.V. MexicoCloroxdePanamaS.A. PanamaCloroxdelEcuadorS.A.Ecuaclorox EcuadorCloroxDiamondProductionCompany DelawareCloroxDominicanaS.R.L. DominicanRepublicClorox(Europe)FinancingS.a.r.l. LuxembourgCloroxHealthcareHoldings,LLC DelawareCloroxHoldingsPty.Limited AustraliaCloroxHongKongLimited HongKongCloroxHungaryLiquidityManagementKft HungaryTheCloroxInternationalCompany DelawareCloroxInternationalHoldings,LLC DelawareCloroxInternationalPhilippines,Inc. ThePhilippinesCloroxLuxembourgS.a.r.l. LuxembourgClorox(Malaysia)Sdn.Bhd. MalaysiaCloroxManufacturingCompany DelawareCloroxManufacturingCompanyofPuertoRico,Inc. PuertoRicoCloroxMexicanaS.deR.L.deC.V. Mexico

NameofCompany JurisdictionofIncorporationCloroxNewZealandLimited NewZealandTheCloroxOutdoorProductsCompany DelawareCloroxPeruS.A. PeruTheCloroxPetProductsCompany TexasCloroxProfessionalProductsCompany DelawareTheCloroxSalesCompany DelawareCloroxServicesCompany DelawareCloroxServiciosCorporativosS.deR.L.deC.V. MexicoCloroxSpain,S.L. SpainCloroxSpainHoldings,S.L. SpainCloroxSub-SaharaAfricaLimited KenyaClorox(Switzerland)S.a.r.l. SwitzerlandCloroxUruguayS.A. UruguayTheConsumerLearningCenter,Inc. DelawareCorporacionCloroxdeVenezuela,S.A. VenezuelaCLXRealtyCo. DelawareEvolutionSociedadS.A. UruguayFabricantedeProductosPlasticos,S.A.deC.V. MexicoFirstBrands(Bermuda)Limited BermudaFirstBrandsCorporation DelawareFirstBrandsdoBrasilLtda. BrazilFirstBrandsMexicana,S.A.deC.V. MexicoFullyWillLimited HongKongGazoontite,LLC DelawareGladManufacturingCompany DelawareTheGladProductsCompany DelawareTheHouseholdCleaningProductsCompanyofEgyptLtd. EgyptTheHVFoodProductsCompany DelawareHVManufacturingCompany DelawareInvermarkS.A. ArgentinaJinglesLLC DelawareKaflexS.A. ArgentinaKingsfordManufacturingCompany DelawareTheKingsfordProductsCompany,LLC DelawareLerwoodHoldingsLimited BritishVirginIslandsTheMexcoCompany DelawareMohamedAliAbudawoodforIndustryandPartnersforIndustryCompanyLtd. SaudiArabiaNationalCleaningProductsCompanyLimited SaudiArabiaPaulsboroPackagingInc. NewJerseyPetroplusProductosAutomotivosS.A. BrazilPetroplusSulComercioExteriorS.A. BrazilReNewLifeAcquisitionCorporation DelawareReNewLifeCanadaInc. OntarioReNewLifeFormulas,Inc. FloridaReNewLifeHoldingsCorporation DelawareRoundRidgeProductionCompany DelawareSoyVayEnterprises,Inc. CaliforniaSTPdoBrasilLtda. BrazilYuhan-CloroxCo.,Ltd. Korea

Exhibit23

CONSENTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

WeconsenttotheincorporationbyreferenceinthefollowingRegistrationStatements:

(1)RegistrationStatement(FormS-3No.333-200722)andintherelatedProspectusesofTheCloroxCompany,and(2) RegistrationStatements(FormS-8Nos.33-41131,includingposteffectiveamendmentsNo.1andNo.2,33-56565,33-56563,333-29375,333-16969,333-

44675,333-86783,333-131487,333-69455,includingposteffectiveamendmentNo.1,333-90386,includingtheposteffectiveamendmentNo.1,and333-193913)ofTheCloroxCompany;

ofourreportsdatedAugust16,2016,withrespecttotheconsolidatedfinancialstatementsandscheduleofTheCloroxCompanyandtheeffectivenessofinternalcontroloverfinancialreportingofTheCloroxCompanyincludedinthisAnnualReport(Form10-K)oftheCloroxCompanyfortheyearendedJune30,2016.

/s/Ernst&YoungLLP

SanFrancisco,CAAugust16,2016

Exhibit31.1

CERTIFICATION

I,BennoDorer,certifythat: 1. IhavereviewedthisannualreportonForm10-KofTheCloroxCompany;2 Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatements

made,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancial

condition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;4. Theregistrant’sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeAct

Rules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

a) designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensure

thatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,to

providereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithU.S.generallyacceptedaccountingprinciples;

c) evaluatedtheeffectivenessoftheregistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessof

thedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) disclosedinthisreportanychangeintheregistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant’smostrecentfiscalquarter(theregistrant’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant’sinternalcontroloverfinancialreporting.

5. Theregistrant’sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,tothe

registrant’sauditorsandtheauditcommitteeoftheregistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

a) allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant’sabilitytorecord,process,summarizeandreportfinancialinformation;and

b) anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant’sinternalcontrolover

financialreporting.

Date:August16,2016

/s/BennoDorerBennoDorerChairmanandChiefExecutiveOfficer

Exhibit31.2

CERTIFICATION

I,StephenM.Robb,certifythat:

1. IhavereviewedthisannualreportonForm10-KofTheCloroxCompany;2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatements

made,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancial

condition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;4. Theregistrant’sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeAct

Rules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

a) designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensure

thatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,to

providereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithU.S.generallyacceptedaccountingprinciples;

c) evaluatedtheeffectivenessoftheregistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessof

thedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) disclosedinthisreportanychangeintheregistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant’smostrecentfiscalquarter(theregistrant’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant’sinternalcontroloverfinancialreporting.

5. Theregistrant’sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,tothe

registrant’sauditorsandtheauditcommitteeoftheregistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

a) allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant’sabilitytorecord,process,summarizeandreportfinancialinformation;and

b) anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant’sinternalcontrolover

financialreporting.

Date:August16,2016

/s/StephenM.RobbStephenM.RobbExecutiveVicePresident-ChiefFinancialOfficer

Exhibit32

CERTIFICATION

InconnectionwiththeperiodicreportofTheCloroxCompany(the"Company")onForm10-KfortheperiodendedJune30,2016,asfiledwiththeSecuritiesandExchangeCommission(the"Report"),we,BennoDorer,ChairmanandChiefExecutiveOfficeroftheCompany,andStephenM.Robb,ChiefFinancialOfficeroftheCompany,herebycertifyasofthedatehereof,solelyforpurposesofTitle18,Chapter63,Section1350oftheUnitedStatesCode,thattoourknowledge:

(1)theReportfullycomplieswiththerequirementsofSection13(a)or15(d),asapplicable,oftheSecuritiesExchangeActof1934,and

(2) theinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheCompanyatthedatesandfortheperiodsindicated.

ThisCertificationhasnotbeen,andshallnotbedeemed,“filed”withtheSecuritiesandExchangeCommission.

Date:August16,2016

/s/BennoDorer BennoDorerChairmanandChiefExecutiveOfficer /s/StephenM.Robb StephenM.RobbExecutiveVicePresident–ChiefFinancialOfficer

Exhibit99.1

MANAGEMENT’SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONS

TheCloroxCompany(Dollarsinmillions,exceptshareandpersharedata)

Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations(MD&A)isdesignedtoprovideareaderofTheCloroxCompany’s(theCompanyorClorox)financialstatementswithanarrativefromtheperspectiveofmanagementontheCompany’sfinancialcondition,resultsofoperations,liquidityandcertainotherfactorsthatmayaffectfutureresults.Incertaininstances,parentheticalreferencesaremadetorelevantsectionsoftheNotestoConsolidatedFinancialStatementstodirectthereadertoafurtherdetaileddiscussion.ThissectionshouldbereadinconjunctionwiththeConsolidatedFinancialStatementsandSupplementaryDataincludedinthisAnnualReportonForm10-K.

Thefollowingsectionsareincludedherein:

● ExecutiveOverview● ResultsofOperations● FinancialPositionandLiquidity● Contingencies● QuantitativeandQualitativeDisclosuresaboutMarketRisk● RecentlyIssuedAccountingStandards● CriticalAccountingPoliciesandEstimates● SummaryofNon-GAAPFinancialMeasures

EXECUTIVEOVERVIEW

Cloroxisaleadingmultinationalmanufacturerandmarketerofconsumerandprofessionalproductswithapproximately8,000employeesworldwideasofJune30,2016andfiscalyear2016netsalesof$5,761.Cloroxsellsitsproductsprimarilythroughgroceryandmassretailoutlets,e-commercechannels,wholesaledistributorsandmedicalsupplydistributors.Cloroxmarketssomeofthemosttrustedandrecognizedconsumerbrandnames,includingitsnamesakebleachandcleaningproducts,Pine-Sol®cleaners,Liquid-Plumr®clogremovers,Poett®homecareproducts,FreshStep®catlitter,Glad®bags,wrapsandcontainerproducts,Kingsford®charcoal,RenewLife®digestivehealthproducts,HiddenValley®dressingsandsauces,Brita®water-filtrationproductsandBurt’sBees®naturalpersonalcareproducts.TheCompanyalsomarketsbrandsthroughprofessionalserviceschannels,includinginfectioncontrolproductsforthehealthcareindustryunderCloroxHealthcare®,HealthLink®,Aplicare®andDispatch®brands.TheCompanymanufacturesproductsinmorethanadozencountriesandsellstheminmorethan100markets.

TheCompanyprimarilymarketsitsleadingbrandsinmidsizedcategoriesconsideredtobefinanciallyattractive.MostoftheCompany’sproductscompetewithothernationallyadvertisedbrandswithineachcategoryandwith“privatelabel”brands.

TheCompanyoperatesthroughstrategicbusinessunitsthatareaggregatedintothefollowingfourreportablesegmentsbasedontheeconomicsandnatureoftheproductssold:

● Cleaningconsistsoflaundry,homecareandprofessionalproductsmarketedandsoldintheUnitedStates.Productswithinthissegmentincludelaundryadditives,includingbleachproductsundertheClorox®brandandClorox2®stainfighterandcolorbooster;homecareproducts,primarilyundertheClorox®,Formula409®,Liquid-Plumr®,Pine-Sol®,S.O.S®andTilex®brands;naturallyderivedproductsundertheGreenWorks®brand;andprofessionalcleaninganddisinfectingproductsundertheClorox®,Dispatch®,Aplicare®,HealthLink®andCloroxHealthcare®brands.

● Householdconsistsofcharcoal,catlitter,digestivehealthproductsandbags,wrapsandcontainerproductsmarketedandsoldintheUnitedStates.ProductswithinthissegmentincludecharcoalproductsundertheKingsford®andMatchLight®brands;catlitterproductsundertheFreshStep®,ScoopAway®

andEverClean®brands;digestivehealthproductsundertheRenewLife®brand;andbags,wrapsandcontainersundertheGlad®brand.

1

● Lifestyleconsistsoffoodproducts,water-filtrationsystemsandfiltersandnaturalpersonalcareproductsmarketedandsoldintheUnitedStates.Productswithinthissegmentincludedressingsandsauces,primarilyundertheHiddenValley®,KCMasterpiece®andSoyVay®brands;water-filtrationsystemsandfiltersundertheBrita®brand;andnaturalpersonalcareproductsundertheBurt’sBees®brand.

● InternationalconsistsofproductssoldoutsidetheUnitedStates.Productswithinthissegmentincludelaundry,homecare,water-filtration,digestivehealthproducts,charcoalandcatlitterproducts,dressingsandsauces,bags,wrapsandcontainersandnaturalpersonalcareproducts,primarilyundertheClorox®

,Glad®,PinoLuz®,Ayudin®,Limpido®,Clorinda®,Poett®,Mistolin®,Lestoil®,BonBril®,Brita®,GreenWorks®,Pine-Sol®,AguaJane®

,Chux®,RenewLife®,Kingsford®,FreshStep®,ScoopAway®,EverClean®,KCMasterpiece®,HiddenValley®andBurt’sBees®brands.

Non-GAAPFinancialMeasures

ThisExecutiveOverview,thesucceedingsectionsofMD&AandExhibit99.3includecertainfinancialmeasuresthatarenotdefinedbyaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(U.S.GAAP).Thesemeasures,whicharereferredtoasnon-GAAPmeasures,arelistedbelow.

● Currency-neutralnetsalesgrowthrepresentsU.S.GAAPnetsalesgrowthexcludingtheimpactofthechangeinforeigncurrencyexchangerates.● Economicprofit(EP)isdefinedbytheCompanyasearningsfromcontinuingoperationsbeforeincometaxes,excludingnoncashU.S.GAAPrestructuring

andintangibleassetimpairmentcosts,andinterestexpense;lessanamountoftaxbasedontheeffectivetaxrateandlessachargeequaltoaveragecapitalemployedmultipliedbyacostofcapitalrate.

● Freecashflowandfreecashflowasapercentageofnetsales.Freecashflowiscalculatedasnetcashprovidedbycontinuingoperationslesscapitalexpendituresrelatedtocontinuingoperations.

● Earningsfromcontinuingoperationsbeforeinterestandtaxes(EBIT)margin(theratioofEBITtonetsales)● Debttoearningsfromcontinuingoperationsbeforeinterest,taxes,depreciationandamortization,andnoncashintangibleassetimpairmentchargesratio

(ConsolidatedLeverageratio)

Foradiscussionofthesemeasuresandthereasonsmanagementbelievestheyareusefultoinvestors,referto“SummaryofNon-GAAPFinancialMeasures”below.ForadiscussionoftheConsolidatedLeverageratio,pleasereferto“CreditArrangements”below.ThisMD&AandExhibit99.3includereconciliationsofthesenon-GAAPmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithU.S.GAAP.

FiscalYear2016FinancialHighlights

Adetaileddiscussionofstrategicgoals,keyinitiativesandresultsofoperationsisincludedbelow.Keyfiscalyear2016financialresultsaresummarizedasfollows:

● TheCompany’sfiscalyear2016netsalesincreasedby2%,from$5,655infiscalyear2015to$5,761infiscalyear2016,reflectinghighervolumeandthebenefitofpriceincreases,partiallyoffsetbyunfavorableforeigncurrencyexchangeratesandhighertradepromotionspending.Onacurrency-neutralbasis,netsalesincreased5%.

● Grossmarginincreased150basispointsto45.1%infiscalyear2016from43.6%infiscalyear2015,reflectingthebenefitsoffavorablecommoditycosts,costsavingsandpriceincreases,partiallyoffsetbyhighermanufacturingandlogisticscosts,increasedtradepromotionspending,andtheimpactofunfavorableforeigncurrencyexchangerates.

● TheCompanyreportedearningsfromcontinuingoperationsof$648infiscalyear2016comparedto$606infiscalyear2015.TheCompanyreportedearningsfromcontinuingoperationsbeforeincometaxesof$983infiscalyear2016,comparedto$921infiscalyear2015.

● TheCompanydelivereddilutednetEPSfromcontinuingoperationsinfiscalyear2016of$4.92,anincreaseofapproximately8%fromfiscalyear2015dilutednetEPSof$4.57.

● EPincreasedto$490infiscalyear2016comparedto$458infiscalyear2015(refertothereconciliationofEPtoearningsfromcontinuingoperationsbeforeincometaxesinExhibit99.3).

● TheCompany’snetcashflowsprovidedbycontinuingoperationswere$768infiscalyear2016,comparedto$858infiscalyear2015reflectinghighertaxpaymentsandhigherperformance-basedincentivecompensationpaymentsinfiscalyear2016relatedtotheCompany’sstrongfiscalyear2015financialresults.Freecashflowwas$596or10%ofnetsalesinfiscalyear2016,adecreasefrom$733or13%ofnetsalesinfiscalyear2015.

2

● TheCompanypaid$398incashdividendstostockholdersinfiscalyear2016comparedto$385incashdividendsinfiscalyear2015.InMay2016,theCompanyannouncedanincreaseof4%inthequarterlycashdividendfromprioryear.Infiscalyear2016,theCompanyrepurchasedapproximately2millionsharesofitscommonstockatacostof$254.

● OnMay2,2016,theCompanyacquiredRenewLife,aleadingbrandindigestivehealthfor$290.ResultsforRenewLife’sdomesticbusinessarereflectedintheHouseholdreportablesegmentandresultsforRenewLife’sinternationalbusinessarereflectedintheInternationalreportablesegment.IncludedintheCompany’sresultsforfiscalyear2016was$21ofRenewLife’sglobalnetsales.

StrategicGoalsandInitiatives

TheCloroxCompany’s2020Strategyservesasitsstrategicgrowthplan,directingtheCompanytothehighestvalueopportunitiesforlong-term,profitablegrowthandtotalshareholderreturn.

Thelong-termfinancialgoalsreflectedintheCompany’s2020Strategyincludeannualnetsalesgrowthof3-5%,annualEBITmargingrowthof25-50basispointsandannualfreecashflowof10-12%ofnetsales.Cloroxanticipatesusingfreecashflowtoinvestinthebusiness,maintainappropriatedebtlevelsandreturnexcesscashtostockholders.

Infiscalyear2017,Cloroxanticipatesongoingmacroeconomicchallengesthatmayimpactitssalesandmargins,includingunfavorableforeigncurrencyexchangerates,particularlyinArgentina,andacontinuationofchallenginginternationaleconomies.TheCompanyismonitoringanticipatedslowerU.S.categorygrowth,drivenprimarilybyexpectedcompetitiveactivityandchangestocommoditycostsandmanufacturingandlogisticscosts.

TheCompany’spriorityinfiscalyear2017remainsinvestingstronglyinitsU.S.businesses,particularlyinits“3D”demand-creationmodelofDesire,DecideandDelight,includingadvertisingandtradepromotionspending.TheCompanyisalsofocusedonproductinnovationtodelightanddeliversuperiorvaluetoconsumers.Importantly,theCompanywillworktocontinuetoimproveitsmarginsbydrivingcostsavingsinitiativesandslowingthegrowthofsellingandadministrativeexpensesbydrivingoutlow-valueactivity.

AstheCompanyexecutesits2020Strategy,aparticularfocuson“StrategyAccelerators,”willhelpdriveinvestmentdecisionswiththegoaltodeliverprofitablelong-termgrowth:

● Acceleratingportfoliomomentumreallocatesresourcestofaster-growingcountries,categoriesandbrandsintheportfolioorfocusesinvestmentinnewcategorieswithgrowthtailwindsliketheCompany’srecentacquisitionofRenewLifedigestivehealthproducts.

● Accelerating3Dtechnologytransformationreflectsanemphasisindigitalcommunicationsthatcandelivermoretargetedmessagesbasedonhowconsumersresearch,shopandbuytheirproducts.TheCompanycontinuestoinvestindigitalmarketingandsocialmediaandisfocusedondrivingitse-commercebusiness.

● AcceleratinginnovationacrosstheCompany’s3Ddemand-creationmodelofDesire,DecideandDelightwillcontinuetosupportcategorygrowthandmarketshareimprovement.TheCompanyisfocusedondeliveringsuperiorvaluetoconsumersthroughtheintroductionofnewproductsandproductimprovements.

● AcceleratingtheCompany’sgrowthcultureinvolvesfosteringaworkenvironmentwhereemployeesdirectlysupporttheCompany’sefforttodriveprofitablegrowth.Thegrowthculturevisionprovidesaframeworktodeliveronthatgoalthroughfivecallstoaction:puttheconsumerfirst,becurious,thinkboldly,embracechangeandactlikeanowner.

Lookingforward,theCompanywillcontinuetoexecuteagainstits2020Strategyandseektoachieveitsgoalstodeliverlong-termprofitablegrowth.

RESULTSOFOPERATIONS

Unlessotherwisenoted,management’sdiscussionandanalysiscomparesresultsofcontinuingoperationsfromfiscalyear2016tofiscalyear2015,andfiscalyear2015tofiscalyear2014,withpercentageandbasispointcalculationsbasedonroundednumbers,exceptforpersharedataandtheeffectivetaxrate.

3

CONSOLIDATED RESULTS

Continuingoperations

Net sales infiscalyear2016increased2%.Volumeincreased4%reflectinghighershipmentsinallreportablesegmentsandmostsignificantlyinCleaning,HouseholdandLifestyle.HighershipmentsintheCleaningsegmentweredrivenbyHomeCareandProfessionalProducts,partiallyoffsetbyLaundry;highershipmentsintheHouseholdsegmentwereprimarilyduetotheacquisitionoftheRenewLifebusiness,Charcoal,andBagsandWraps,partiallyoffsetbyCatLitter;andhighershipmentsintheLifestylesegmentprimarilywereduetoNaturalPersonalCareandDressingandSauces.Volumeoutpacednetsalesprimarilyduetounfavorableforeigncurrencyexchangeratesandhighertradepromotionspending,partiallyoffsetbythebenefitofpriceincreases.

Netsalesinfiscalyear2015increased3%.Volumeincreased2%,reflectinghigherproductshipmentsintheInternationalsegment,primarilyduetogrowthinLatinAmerica,Canada,EuropeandAsia;highershipmentsofBurt’sBees®naturalpersonalcareproducts,largelyduetoinnovationinlipandfacecareproductscombinedwithdistributiongains;highershipmentsofcleaningandhealthcareproductsintheprofessionalproductsbusiness;highershipmentsofClorox®toiletbowlcleanerduetoincreasedmerchandisingactivitiesanddistributiongains;andhighershipmentsofKingsford®charcoalproductsbehindincreasedmerchandisingsupporttolaunchthestartofthegrillingseason.VolumeresultsalsoreflectedlowershipmentsofClorox®liquidbleachduetotheFebruary2015priceincrease,categorysoftnessandincreasedcompetition;andlowershipmentsofBrita®water-filtrationproducts,primarilyduetocontinuingcategorysoftnessandincreasedcompetition.Thevariancebetweenvolumeandnetsaleswasprimarilyduetothebenefitofpriceincreases,partiallyoffsetbyunfavorableforeigncurrencyexchangerates.Onacurrency-neutralbasis,netsalesincreasedabout5%.

Gross margin ,definedasgrossprofitasapercentageofnetsales,infiscalyear2016increased150basispointsfrom43.6%to45.1%.Grossmarginexpansioninfiscalyear2016wasdrivenbythebenefitsoffavorablecommoditycosts,strongcostsavingsandpriceincreases,partiallyoffsetbyhighermanufacturingandlogisticscosts,increasedtradepromotionspendingandtheimpactofunfavorableforeigncurrencyexchangerates.

Grossmargin,definedasgrossprofitasapercentageofnetsales,infiscalyear2015increased90basispointsfrom42.7%to43.6%.Grossmarginexpansioninfiscalyear2015wasdrivenbythebenefitsofcostsavingsandpriceincreases,partiallyoffsetbytheimpactofhighermanufacturingandlogisticscosts.

4

Expenses

%Change %ofNetsales

2016 2015 2014 2016to2015

2015to2014 2016 2015 2014

Sellingandadministrativeexpenses $ 806 $ 798 $ 751 1% 6% 14.0% 14.1% 13.6%Advertisingcosts 587 523 503 12 4 10.2 9.2 9.1Researchanddevelopmentcosts 141 136 125 4 9 2.4 2.4 2.3

Selling and administrative expenses wererelativelyflatinfiscalyear2016.

Sellingandadministrativeexpensesincreased6%infiscalyear2015,primarilyfromhigherperformance-basedincentivecostsasaresultoffiscalyearfinancialperformanceexceedingfinancialtargets.Expensesintheprioryearreflectedlowerperformance-basedincentivecostswhentheCompany’sresultsfellbelowfinancialtargets.Inaddition,theCompanycontinuedtoexperienceinflationarypressuresininternationalmarkets.Theseincreaseswerepartiallyoffsetbythebenefitofcostsavings,one-timecostsinfiscalyear2014relatedtothechangeininformationtechnology(IT)serviceprovidersandaone-timeimpactrelatedtoachangeintheCompany’slong-termdisabilityplaninfiscalyear2015tobringitmoreinlinewiththemarketplace.

Advertising costs asapercentageofnetsalesincreasedduringfiscalyear2016mainlytodriveawarenessandtrialbehindinnovationandmaintainthehealthoftheCompany’scorebusiness.TheCompany’sU.S.retailadvertisingspendwasapproximately11%ofnetsalesduringtheyear.

Advertisingcostsasapercentageofnetsalesincreasedslightlyduringfiscalyear2015,reflectingcontinuedsupportbehindtheCompany’sbrands,includingdrivingthetrialofnewproducts.TheCompany’sU.S.retailadvertisingspendwasapproximately10%ofnetsalesduringtheyear.

Research and development costs asapercentageofnetsaleswasflatinfiscalyear2016.

Researchanddevelopmentcostsincreasedslightlyasapercentageofnetsalesinfiscalyear2015,drivenbyhigherperformance-basedincentivecosts.

5

Interest expense, Other (income) expense, net, and the effective tax rate on earnings

2016 2015 2014

Interestexpense $ 88 $ 100 $ 103Otherincome,net (7) (13) (10)Incometaxesoncontinuingoperations 335 315 305

Interest expense decreased$12infiscalyear2016,primarilyduetoalowerweighted-averageinterestrateontotaldebt.

Interestexpensedecreased$3infiscalyear2015,primarilyduetoalowerweighted-averageinterestrateonlong-termdebtresultingfromtheissuanceofseniornotesinDecember2014andthematuritiesofseniornotesinJanuary2015,combinedwithlessinterestexpenseonalowerbalanceofcommercialpaperthroughoutfiscalyear2015.

Other (income) expense, net ,of$(7)infiscalyear2016included$(15)ofincomefromequityinvestees,$(11)gainonthesaleoftheLosAngelesbleachmanufacturingfacility,partiallyoffsetby$9ofnoncashassetimpairmentchargesand$8ofamortizationoftrademarksandotherintangibleassets.

Other(income)expense,net,of$(13)infiscalyear2015included$(14)ofincomefromequityinvestees,$(13)gainonthesaleofrealestateassetsbyalow-incomehousingpartnershipand$(4)ofinterestincome,partiallyoffsetby$9offoreigncurrencyexchangelosses,$8ofamortizationoftrademarksandotherintangibleassetsand$3ofnoncashassetimpairmentcharges.

Other(income)expense,net,of$(10)infiscalyear2014included$(13)ofincomefromequityinvestees,$(5)ofinsuranceandlitigationsettlementsandothersmalleritems,partiallyoffsetby$8ofamortizationoftrademarksandotherintangibleassetsand$3ofnoncashassetimpairmentcharges.

The effective tax rate on earnings was34.1%,34.2%and34.6%infiscalyears2016,2015and2014,respectively.Theeffectivetaxrateinfiscalyear2016comparedtofiscalyear2015wasessentiallyflat.Thelowereffectivetaxrateinfiscalyear2015comparedtofiscalyear2014wasprimarilyduetohigheruncertaintaxpositionreleases,partiallyoffsetbyhighertaxonforeignearnings,infiscalyear2015.

Diluted net earnings per share

%Change

2016 2015 2014 2016to2015

2015to2014

DilutednetEPSfromcontinuingoperations $ 4.92 $ 4.57 $ 4.39 8% 4%

Dilutednetearningspershare(EPS)fromcontinuingoperationsincreased$0.35,drivenbythebenefitsofhighersalesandgrossmarginexpansion,partiallyoffsetbyincreasedadvertisinginvestments.

DilutednetEPSfromcontinuingoperationsincreased$0.18infiscalyear2015,drivenbythebenefitsofhighersalesandgrossmarginexpansion,partiallyoffsetbyincreasedsellingandadministrativeexpenses,primarilyfromhigherperformance-basedincentivecostsasaresultoffiscalyearfinancialperformanceexceedingfinancialtargets.Expensesintheprioryearreflectedlowerperformance-basedincentivecostswhentheCompany’sresultsfellbelowfinancialtargets.Increasedinvestmentsintotaldemand-buildingprogramsalsoreducedfiscalyeardilutedEPS.

6

DiscontinuedOperations

OnSeptember22,2014,CloroxVenezuelaannouncedthatitwasdiscontinuingitsoperations,effectiveimmediately,andseekingtosellitsassets.Sincefiscalyear2012,CloroxVenezuelawasrequiredtosellmorethantwothirdsofitsproductsatpricesfrozenbytheVenezuelangovernment.Duringthissameperiod,CloroxVenezuelaexperiencedsuccessiveyearsofhyperinflationresultinginsignificantsustainedincreasesinitsinputcosts,includingpackaging,rawmaterials,transportationandwages.Asaresult,CloroxVenezuelahadbeensellingitsproductsataloss,resultinginongoingoperatinglosses.CloroxVenezuelarepeatedlymetwithgovernmentauthoritiesinanefforttohelpthemunderstandtherapidlydecliningstateofthebusiness,includingtheneedforimmediate,significantandongoingpriceincreasesandothercriticalremedialactionstoaddresstheseadverseimpacts.BasedontheVenezuelangovernment’srepresentations,CloroxVenezuelahadexpectedsignificantpriceincreaseswouldbeforthcomingmuchearlier;however,thepriceincreasessubsequentlyapprovedwereinsufficientandwouldhavecausedCloroxVenezuelatocontinueoperatingatasignificantlossintotheforeseeablefuture.Assuch,CloroxVenezuelawasnolongerfinanciallyviableandwasforcedtodiscontinueitsoperations.

OnSeptember26,2014,theCompanyreportedthatVenezuelanVicePresidentJorgeArreazaannounced,withendorsementbyPresidentNicolásMaduro,thattheVenezuelangovernmenthadoccupiedtheSantaLucíaandGuacaraproductionfacilitiesofCloroxVenezuela.OnNovember6,2014,theCompanyreportedthattheVenezuelangovernmenthadpublishedaresolutiongrantingagovernment-sponsoredSpecialAdministrativeBoardfullauthoritytorestartandoperatethebusinessofCloroxVenezuela,therebyreaffirmingthegovernment'sexpropriationofCloroxVenezuela’sassets.Further,PresidentNicolásMaduroannouncedthegovernment'sintentiontofacilitatetheresumedproductionofbleachandothercleaningproductsatCloroxVenezuelaplants.Healsoannouncedhisapprovalofafinancialcredittoinvestinrawmaterialsandproductionattheplants.TheseactionsbytheVenezuelangovernmentweretakenwithouttheconsentorinvolvementofCloroxVenezuela,itsparentCloroxSpainS.L.(CloroxSpain)oranyoftheiraffiliates.CloroxVenezuela,CloroxSpainandtheiraffiliatesreservedtheirrightsunderallapplicablelawsandtreaties.SincetheexitofCloroxVenezuelainthefirstquarteroffiscalyear2015,theCompanyhasrecognized$49inafter-taxexitcostsandotherrelatedexpenseswithindiscontinuedoperationsrelatedtotheexitofCloroxVenezuela.TheCompanybelievesitisreasonablypossiblethatitwillrecognize$1to$11inafter-taxexitcostsandotherrelatedexpensesindiscontinuedoperationsforCloroxVenezueladuringfiscalyears2017through2019,foratotalof$50to$60overtheentirefive-yearperiod.

SeeNotestoConsolidatedFinancialStatementsformoreinformationregardingdiscontinuedoperationsofCloroxVenezuela.

UnrelatedtoCloroxVenezuela,inthefiscalyearendedJune30,2015,theCompanyrecognized$32ofpreviouslyunrecognizedtaxbenefitsrelatingtootherdiscontinuedoperationsupontheexpirationoftheapplicablestatuteoflimitations.RecognitionofthesepreviouslydisclosedtaxbenefitshadnoimpactontheCompany’scashflowsorearningsfromcontinuingoperationsforthefiscalyearendedJune30,2015.

SEGMENT RESULTS FROM CONTINUING OPERATIONS

ThefollowingpresentstheresultsfromcontinuingoperationsoftheCompany’sreportablesegmentsandcertainunallocatedcostsreflectedinCorporate(seeNotestoConsolidatedFinancialStatementsforareconciliationofsegmentresultstoconsolidatedresults):

Cleaning

%Change

2016 2015 2014

2016to2015

2015to2014

Netsales $1,912 $1,824 $1,776 5% 3%Earningsfromcontinuingoperationsbeforeincometaxes 511 445 428 15 4

7

Fiscalyear2016versusfiscalyear2015:Volume,netsalesandearningsfromcontinuingoperationsbeforeincometaxesincreasedby6%,5%and15%,respectively,duringfiscalyear2016.BothvolumeandnetsalesgrowthweredrivenprimarilybyhighershipmentsacrossseveralHomeCarebrands,includingClorox®disinfectingwipesresultingfromincreasedmerchandisingsupportandexpandedwarehouseclubdistribution,andinProfessionalProductsmainlyincleaningproducts.TheseincreaseswerepartiallyoffsetbylowershipmentsinLaundry,primarilyduetotheimpactoftheFebruary2015priceincreaseonClorox®liquidbleach.Volumeoutpacednetsalesduetounfavorableproductmix.Theincreaseinearningsfromcontinuingoperationsbeforeincometaxeswasmainlyduetonetsalesgrowth,thebenefitoffavorablecommoditycosts,strongcostsavings,andthegainonthesaleoftheCompany’sLosAngelesbleachmanufacturingfacility,partiallyoffsetbyhighermanufacturingandlogisticscostsandincreasedadvertisinginvestments.

Fiscalyear2015versusfiscalyear2014:Volume,netsalesandearningsfromcontinuingoperationsbeforeincometaxesincreasedby2%,3%and4%,respectively,duringfiscalyear2015.BothvolumeandnetsalesgrewprimarilyduetohighershipmentsofClorox®toiletbowlcleanerandClorox®disinfectingwipesinHomeCare,behindincreasedmerchandisingactivities.TheProfessionalProductsDivisionalsogrewvolume,whichwasdrivenprimarilybydistributiongainsacrossanumberofbrands.TheseincreaseswerepartiallyoffsetbylowershipmentsofClorox®liquidbleachinLaundry,primarilyduetotheFebruary2015priceincrease.Netsalesgrowthoutpacedvolumegrowthprimarilyduetothebenefitofpriceincrease.Theincreaseinearningsfromcontinuingoperationsbeforeincometaxeswasdrivenbythebenefitofsalesgrowthandcostsavings,partiallyoffsetbyanincreaseindemand-buildinginvestments.

Household

%Change

2016 2015 2014 2016to2015

2015to2014

Netsales $ 1,862 $ 1,794 $ 1,709 4% 5%Earningsfromcontinuingoperationsbeforeincometaxes 428 375 326 14 15

Fiscalyear2016versusfiscalyear2015:Volume,netsalesandearningsfromcontinuingoperationsbeforeincometaxesincreasedby3%,4%and14%,respectively,duringfiscalyear2016.BothvolumegrowthandnetsalesgrowthweredrivenbytheacquisitionoftheRenewLifebusiness,highershipmentsofCharcoalresultingfromincreasedmerchandisingsupportandincreasedshipmentsacrossseveralGlad®products,includingcontinuedstrengthinpremiumtrashbags.TheseincreaseswerepartiallyoffsetbylowershipmentsofCatLitter,largelyduetocontinuingcompetitiveactivity.Netsalesgrowthoutpacedvolumegrowth,primarilyduetofavorableproductmixandthebenefitofpriceincreases,partiallyoffsetbyhighertradepromotionspending,mainlyinBagsandWraps.Theincreaseinearningsfromcontinuingoperationsbeforeincometaxeswasmainlyduetonetsalesgrowth,thebenefitoffavorablecommoditycostsandstrongcostsavings,partiallyoffsetbyhighermanufacturingandlogisticscostsandincreasedadvertisinginvestments.

Fiscalyear2015versusfiscalyear2014:Volume,netsalesandearningsfromcontinuingoperationsbeforeincometaxesincreasedby2%,5%and15%,respectively,duringfiscalyear2015.BothvolumegrowthandnetsalesgrowthweredrivenbyhighershipmentsofKingsford®charcoalproductsbehindincreasedmerchandisingactivities.NetsalesgrowthoutpacedvolumegrowthprimarilyduetothebenefitsofpriceincreasesonGlad®bagsandwraps.Theincreaseinearningsfromcontinuingoperationsbeforeincometaxeswasdrivenbystrongsalesgrowthandthebenefitofcostsavings,partiallyoffsetbyanincreaseindemandbuildinginvestmentsandmanufacturingandlogisticscosts.

8

Lifestyle

%Change

2016 2015 2014

2016to2015

2015to2014

Netsales $ 990 $ 950 $ 936 4% 1%Earningsfromcontinuingoperationsbeforeincometaxes 251 257 258 (2) -

Fiscalyear2016versusfiscalyear2015:Volumeandnetsalesincreaseby5%and4%,respectively,whileearningsfromcontinuingoperationsbeforeincometaxesdecreased2%duringfiscalyear2016.BothvolumegrowthandnetsalesgrowthwereprimarilydrivenbyhighershipmentsofBurt’sBees®NaturalPersonalCarelargelyduetoinnovationinlipandfacecareandhighershipmentsofHiddenValley®bottledsaladdressingsduetoinnovation.Volumegrowthoutpacednetsalesgrowthprimarilyduetoincreasedtradepromotionspending.Thedecreaseinearningsfromcontinuingoperationsbeforeincometaxeswasprimarilyduetoincreasedadvertisinginvestmentstosupportnewproductsandincreasedsellingandadministrativeexpensestosupportinnovationandgrowth,partiallyoffsetbynetsalesgrowthandcostsavings.

Fiscalyear2015versusfiscalyear2014:Netsalesandvolumebothincreasedby1%,whileearningsfromcontinuingoperationsbeforeincometaxesremainedflatduringfiscalyear2015.BothnetsalesgrowthandvolumegrowthweredrivenbyhighershipmentsofBurt’sBees®naturalpersonalcareproducts,largelyduetoinnovationinlipandfacecareproductscombinedwithdistributiongains.TheincreasewaspartiallyoffsetbylowershipmentsofBrita®water-filtrationproducts,primarilyduetocontinuingcategorysoftnessandincreasedcompetition.Flatearningsfromcontinuingoperationsbeforeincometaxesreflectedlowercommoditycosts,costsavingsandfavorableproductmix.Theseincreaseswereoffsetbyhighermanufacturingandlogisticscostsanddemandbuildinginvestments.

International

%Change

2016 2015 2014

2016to2015

2015to2014

Netsales $ 997 $1,087 $1,093 (8)% (1)%Earningsfromcontinuingoperationsbeforeincometaxes 66 79 99 (16) (20)

Fiscalyear2016versusfiscalyear2015:Volumeincreased1%,whilenetsalesandearningsfromcontinuingoperationsbeforeincometaxesdecreasedby8%and16%,respectively,duringfiscalyear2016.Volumegrewprimarilyduetohighershipments,mainlyinCanada,whichincludedthebenefitofRenewLifeacquisition,Mexico,andEurope,partiallyoffsetbylowershipmentsincertainotherLatinAmericancountrieslargelyduetotheimpactofpriceincreasestakentooffsetinflationarypressures.Thedeclineinnetsaleswasprimarilyduetounfavorableforeigncurrencyexchangeratesacrossmultiplecountries,includingtheimpactofthesignificantdevaluationoftheArgentinepeso,partiallyoffsetbythebenefitofpriceincreases.Thedecreaseinearningsfromcontinuingoperationsbeforeincometaxeswasprimarilyduetolowernetsales,unfavorableforeigncurrencyexchangerates,inflationarypressureonmanufacturingandlogisticscostsandhigheradvertisingcosts,offsetbythebenefitsofpriceincreasesandcostsavings.

Fiscalyear2015versusfiscalyear2014:Volumeincreased3%,whilenetsalesandearningsfromcontinuingoperationsbeforeincometaxesdecreased1%and20%,respectively,duringfiscalyear2015.VolumegrewprimarilyduetohighershipmentsinLatinAmerica,Canada,EuropeandAsia.Volumegrowthoutpacednetsalesgrowthprimarilyduetounfavorableforeigncurrencyexchangerates,partiallyoffsetbythebenefitofpriceincreasesandfavorableproductmix.Thedecreaseinearningsfromcontinuingoperationsbeforeincometaxeswasprimarilydrivenbyunfavorableforeigncurrencyexchangeratesandinflationacrossmultiplecountries,primarilyinArgentina(see“Argentina”below),whichresultedinhighersellingandadministrativeexpenses,highermanufacturingandlogisticscostsandhighercommoditycosts.Thesedecreasesinearningswerepartiallyoffsetbythebenefitofpriceincreases,favorableproductmixandcostsavings.

9

Argentina

TheCompanyoperatesinArgentinathroughcertainwhollyownedsubsidiaries(collectively,“CloroxArgentina”).NetsalesfromCloroxArgentinarepresentedapproximately3%and4%forthefiscalyearsendedJune30,2016and2015,respectively,oftheCompany’sconsolidatednetsalesforthoseperiods.TheoperatingenvironmentinArgentinaandtheLatinAmericaregioncontinuestopresentbusinesschallenges,includingsignificantdevaluingcurrencyandinflation.

CloroxArgentinamanufacturesproductsatthreeplantsthatitownsandoperatesacrossArgentinaandmarketsthoseproductstoconsumersthroughoutthecountry.ProductsareadvertisednationallyandsoldtoconsumersthroughwholesalersandretailoutletslocatedthroughoutArgentina.SalesaremadeprimarilythroughtheuseofCloroxArgentina’ssalesforce.SmallamountsofproductsproducedinArgentinaareexportedeachyear,includingsalestotheCompany’ssubsidiarieslocatedprimarilyinLatinAmerica.CloroxArgentinaobtainsitsrawmaterialsalmostentirelyfromlocalsources.TheCompanyalsoconductsresearchanddevelopmentactivitiesatitsownedfacilityinBuenosAires,Argentina.Additionally,CloroxArgentinaperformsmarketing,legal,andvariousothersharedserviceactivitiestosupporttheCompany’sLatinAmericanoperations.CloroxArgentinainturnbenefitsfromsharedserviceactivitiesperformedwithinothergeographiclocations,suchasinformationtechnologysupportandmanufacturingtechnicalassistance.

ForthefiscalyearendedJune30,2016and2015,thevalueoftheArgentinepeso(ARS)declined39%and10%,respectively.AsofJune30,2016,usingtheexchangerateof15ARSperU.S.dollar(USD),CloroxArgentinahadtotalassetsof$77,includingcashandcashequivalentsof$22,netreceivablesof$13,inventoriesof$19,netproperty,plantandequipmentof$15andintangibleassetsexcludinggoodwillof$3.GoodwillforArgentinaisaggregatedandassessedforimpairmentattheLatinAmericareportingunitlevel,whichispartoftheCompany’sInternationalreportablesegment.Basedontheresultsoftheannualimpairmenttestperformedinthefourthquarteroffiscalyear2016,thefairvalueoftheLatinAmericareportingunitexceededitscarryingvaluebymorethan20%andreflectedunfavorableforeigncurrencyexchangeratesacrossseveralcountriesandtheCompany’sexpectationsofcontinuedchallengesfromtheLatinAmericaregion.AlthoughArgentinaisnotcurrentlydesignatedasahighlyinflationaryeconomyforaccountingpurposes,furthervolatilityanddeclinesintheexchangerateareexpectedinthefuture,whichwouldhaveanadditionaladverseimpactonCloroxArgentina’snetsales,netearnings,andnetmonetaryassetposition.

TheCompanyiscloselymonitoringdevelopmentsinArgentinaandistakingstepsintendedtomitigatetheadverseconditions,buttherecanbenoassurancesthattheseactionswillbeabletomitigatetheseconditions.

Corporate

%Change

2016 2015 2014 2016to2015

2015to2014

Lossesfromcontinuingoperationsbeforeincometaxes $ (273) $(235) $(227) 16% 4%

Corporateincludescertainnon-allocatedadministrativecosts,interestincome,interestexpenseandothernon-operatingincomeandexpenses.Corporateassetsincludecashandcashequivalents,propertyandequipment,otherinvestmentsanddeferredtaxes.

Fiscalyear2016versusfiscalyear2015:Theincreaseinlossesfromcontinuingoperationsbeforeincomewasprimarilyduetohighercurrentyearbenefitsandperformance-basedemployeeincentivecostsincludingtheprioryearchangeintheCompany’slong-termdisabilityplantobringitmoreinlinewiththemarketplace,absenceoftheprioryear’sgainonthesaleofrealestateassetsbyalow-incomehousingpartnershipandincreasedcurrentyearinformationtechnologyspendingtosupporttheCompany’sinitiatives.Thiswaspartiallyoffsetbylowercurrentyearinterestexpenseprimarilyduetoalowerweighted-averageinterestrateontotaldebt.

Fiscalyear2015versusfiscalyear2014:Theincreaseinlossesfromcontinuingoperationsbeforeincometaxeswasprimarilyduetohigherperformance-basedincentivecostsasaresultoffiscalyearfinancialperformanceexceedingfinancialtargets,comparedtotheprioryearwhichreflectedlowerperformance-basedincentivecostswhentheCompany’sresultsfellbelowfinancialtargets.Thisfactorwaspartiallyoffsetbycostsavings,againonthesaleofrealestateassetsbyalow-incomehousingpartnershipandbenefitsfromachangeintheCompany’slong-termdisabilityplantobringitmoreinlinewiththemarketplace.

10

FINANCIALPOSITIONANDLIQUIDITY

Management’sdiscussionandanalysisoftheCompany’sfinancialpositionandliquiditydescribesitsconsolidatedoperating,investingandfinancingactivitiesfromcontinuingoperations,contractualobligationsandoff-balancesheetarrangements.

ThefollowingtablesummarizescashactivitiesfromcontinuingoperationsfortheyearsendedJune30:

2016 2015 2014

Netcashprovidedbycontinuingoperations $ 768 $ 858 $ 786Netcashusedforinvestingactivities (430) (106) (137)Netcashusedforfinancingactivities (316) (696) (592)

TheCompany’scashpositionincludesamountsheldbyforeignsubsidiariesand,asaresult,therepatriationofcertaincashbalancesfromsomeoftheCompany’sforeignsubsidiariescouldresultinadditionaltaxcostsinexcessoftaxbenefits.However,thesecashbalancesheldbyforeignsubsidiariesaregenerallyavailablewithoutlegalrestrictiontofundlocalbusinessoperations.

Inaddition,aportionoftheCompany’scashbalanceisheldinU.S.dollarsbyforeignsubsidiaries,whosefunctionalcurrencyistheirlocalcurrency.SuchU.S.dollarbalancesarereportedontheforeignsubsidiaries’books,intheirfunctionalcurrency,withtheimpactfromforeigncurrencyexchangeratedifferencesrecordedinOther(income)expense,net.TheCompany’scashholdingsatJune30wereasfollows:

2016 2015 2014

U.S.dollarbalancesheldbyU.S.dollarfunctionalcurrencysubsidiariesandatparent $ 249 $ 221 $ 180Non-U.S.dollarbalancesheldbynon-U.S.dollarfunctionalcurrencysubsidiaries 133 142 132U.S.dollarbalancesheldbynon-U.S.dollarfunctionalcurrencysubsidiaries 19 19 12Non-U.S.dollarbalancesheldbyU.S.dollarfunctionalcurrencysubsidiaries - - 5Total $ 401 $ 382 $329

TheCompany’stotalcashbalancewas$401asofJune30,2016,ascomparedto$382asofJune30,2015.Theincreaseof$19wasprimarilyattributableto$768ofnetcashprovidedbycontinuingoperations,largelyoffsetbycashusedininvestingactivitiesof$430,whichincludedthe$290acquisitionofRenewLifeand$172incapitalexpenditures,andcashusedinfinancingactivitiesof$316,whichincludedcashdividendsof$398andsharerepurchasesof$254,partiallyoffsetbyproceedsfromtheissuanceofcommonstockforemployeestockplansof$210andincrementalborrowingsof$126.

TheCompany’stotalcashbalancewas$382asofJune30,2015,ascomparedto$329asofJune30,2014.Theincreaseof$53wasprimarilyattributableto$858ofnetcashprovidedbycontinuingoperations,$495ofnetproceedsfromtheDecember2014long-termdebtissuanceand$251ofproceedsfromtheissuanceofcommonstockforemployeestockplans.Theseincreaseswerepartiallyoffsetby$575ofrepaymentsoflong-termdebt,$434ofsharerepurchases,$385ofdividendpayments,$125ofcapitalexpendituresand$48ofrepaymentsofcommercialpaperborrowings.

OperatingActivities

Netcashprovidedbycontinuingoperationsdecreasedto$768infiscalyear2016from$858infiscalyear2015.Thedecreasereflectedhigherpaymentsinthecurrentyearforbothtaxesandperformance-basedemployeeincentivecompensationrelatedtotheCompany’sstrong2015fiscalyearresults.Thesefactorswerepartiallyoffsetbyhigherearningsfromcontinuingoperationsinfiscalyear2016and$25inprioryearpaymentstosettleinterest-ratehedgesrelatedtotheCompany’sissuanceoflong-termdebt.

Netcashprovidedbycontinuingoperationsincreasedto$858infiscalyear2015from$786infiscalyear2014.Theincreasewasprimarilyduetothecompany’sfiscalyearperformance,includingsolidnetsalesgrowthandmarginexpansion.Othercontributingfactorsincludelowerperformance-basedincentivepaymentsrelatedtothecompany'sfiscalyear2014performanceandlowertaxpaymentsinthecurrentperiod,aswellastheinitialfundingofthecompany'snon-qualifieddeferredcompensationplanintheyear-agoperiod.Thesebenefitswerepartiallyoffsetby$25inpaymentstosettleinterest-ratehedgesrelatedtothecompany'sissuanceoflong-termdebtinDecember2014.

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InvestingActivities

Capitalexpenditureswere$172,$125and$137,respectively,infiscalyears2016,2015and2014.Capitalspendingasapercentageofnetsaleswas3.0%,2.2%and2.5%forfiscalyears2016,2015and2014,respectively.Theincreaseinfiscalyear2016wasduetoadditionalcapitalspendingtodrivecostsavingsandtosupportinnovationandgrowth.Therelativelyflatfiscalyear2015capitalspendingasapercentageofnetsaleswasduetoprudentmanagementofcapitalspendingagainstmanufacturing,technologyandfacilityprojectswhichmeetgrowth,efficiency,replacementorcompliancerequirements.

InApril2016,theCompanysolditsLosAngelesbleachmanufacturingfacility,resultingin$20incashproceedsfrominvestingactivitiesandagainof$(11)recordedinOther(income)expense,net,ontheconsolidatedstatementofearningsfortheyearendedJune30,2016.InSeptember2015,theCompanysolditscorporatejettoanunrelatedpartyforcashproceedsof$11.

InApril2015,alow-incomehousingpartnership,inwhichtheCompanywasalimitedpartner,solditsrealestateholdings.Therealpropertysaleresultedin$15incashproceedsfrominvestingactivitiesandagainof$(14)recordedinOther(income)expense,net,ontheconsolidatedstatementofearningsfortheyearendedJune30,2015.

Acquisition

OnMay2,2016,theCompanyacquiredRenewLife,aleadingbrandindigestivehealth.Theamountpaidwas$290fundedthroughcommercialpaper.

Free cash flow

2016 2015 2014

Netcashprovidedbycontinuingoperations $ 768 $ 858 $ 786Less:capitalexpenditures (172) (125) (137)Freecashflow $ 596 $ 733 $ 649Freecashflowasapercentageofnetsales 10.3% 13.0% 11.8%

FinancingActivities

Capital Resources and Liquidity

Netcashusedforfinancingactivitieswas$316infiscalyear2016,ascomparedto$696infiscalyear2015.Netcashusedforfinancingactivitieswaslowerinfiscalyear2016,mainlydrivenbytheincreaseinnetborrowingstofundtheRenewLifeacquisition.

Netcashusedforfinancingactivitieswas$696infiscalyear2015,ascomparedto$592infiscalyear2014.Netcashusedforfinancingactivitieswashigherinfiscalyear2015duetoanetreductioninlong-termdebtandanincreaseinsharerepurchasesanddividendspaid.Thesefactorswerepartiallyoffsetbyanincreaseinproceedsfromtheissuanceofcommonstockforemployeestockplans.

Credit Arrangements

AsofJune30,2016,theCompanyhada$1,100revolvingcreditagreement(theCreditAgreement),whichexpiresinOctober2019.TherewerenoborrowingsundertheCreditAgreementasofJune30,2016or2015,andtheCompanybelievesthatborrowingsundertheCreditAgreementareandwillcontinuetobeavailableforgeneralcorporatepurposes.Theagreementincludescertainrestrictivecovenantsandlimitations.Theprimaryrestrictivecovenantisamaximumratiooftotaldebttoearningsbeforeinterest,taxes,depreciationandamortizationandintangibleassetimpairment(ConsolidatedEBITDA)forthetrailingfourquarters(ConsolidatedLeverageratio),asdefinedanddescribedintheCreditAgreement,of3.50.

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ThefollowingtablesetsforththecalculationoftheConsolidatedLeverageratioasofJune30,usingConsolidatedEBITDAforthetrailingfourquarters,ascontractuallydefined:

2016

Earningsfromcontinuingoperations $ 648Addback:Interestexpense 88Incometaxexpense 335Depreciationandamortization 165Noncashintangibleassetimpairmentcharges 9Deduct: Interestincome 5ConsolidatedEBITDA $1,240Totaldebt $ 2,320ConsolidatedLeverageratio 1.87

TheCompanywasincompliancewithallrestrictivecovenantsandlimitationsinthecreditagreementasofJune30,2016,andanticipatesbeingincompliancewithallrestrictivecovenantsfortheforeseeablefuture.TheCompanycontinuestomonitorthefinancialmarketsandassessitsabilitytofullydrawonitsrevolvingcreditagreement,andcurrentlyexpectsthatanydrawingontheagreementwillbefullyfunded.

Ofthe$28offoreignandothercreditlinesasofJune30,2016,$5wasoutstandingandtheremainderof$23wasavailableforborrowing.Ofthe$29offoreignandothercreditlinesasofJune30,2015,$4wasoutstandingandtheremainderof$25wasavailableforborrowing.

Short-term Borrowings

TheCompany’snotesandloanspayableincludeU.S.commercialpaperissuedbytheparentcompanyandashort-termloanheldbyanon-U.S.subsidiary.Theseshort-termborrowingshavestatedmaturitieslessthanoneyearandprovidesupplementalfundingforsupportingoperations.ThelevelofU.S.commercialpaperborrowingsgenerallyfluctuatedependingupontheamountandtimingofoperatingcashflowsandpaymentsforitemssuchasdividends,incometaxes,sharerepurchasesandpensioncontributions.TheaveragebalanceofU.S.commercialpaperborrowingsoutstandingwas$371and$104forthefiscalyearendedJune30,2016and2015,respectively.

Long-term Borrowings

InNovember2015,$300oftheCompany’sseniornoteswithanannualfixedinterestrateof3.55%becamedueandwererepaidusingcommercialpaperborrowingsandcashonhand.

InJanuary2015,$575oftheCompany’sseniornoteswithanannualfixedinterestrateof5.00%becamedueandwererepaidusingthenetproceedsfromtheDecember2014debtissuanceandcommercialpaperborrowings.

InDecember2014,underashelfregistrationstatementfiledwiththeSECthatwillexpireinDecember2017,theCompanyissued$500ofseniornoteswithanannualfixedinterestrateof3.50%.Interestonthenotesispayablesemi-annuallyinJuneandDecemberandthenoteshaveamaturitydateofDecember15,2024.Thenotescarryaneffectiveinterestrateof4.10%,whichincludestheimpactfromthesettlementofinterestrateforwardcontractsinDecember2014(seeNotestoConsolidatedFinancialStatements).ThenotesrankequallywithalloftheCompany’sexistingseniorindebtedness.

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BasedontheCompany’sworkingcapitalrequirements,anticipatedabilitytogeneratepositivecashflowsfromoperationsinthefuture,investment-gradecreditratings,demonstratedaccesstolong-andshort-termcreditmarketsandcurrentborrowingavailabilityundercreditagreements,theCompanybelievesitwillhavethefundsnecessarytomeetitsfinancingrequirementsandotherfixedobligationsastheybecomedue.TheCompanymayconsiderothertransactionswhichmayrequiretheissuanceofadditionallong-and/orshort-termdebtorothersecuritiestofinanceacquisitions,repurchaseshares,refinancedebtorfundotheractivitiesforgeneralbusinesspurposes.SuchtransactionscouldrequirefundsinexcessoftheCompany’scurrentcashlevelsandavailablecreditlines,andtheCompany’saccesstoorcostofsuchadditionalfundscouldbeadverselyaffectedbyanydecreaseincreditratings,whichwerethefollowingasofJune30:

2016 2015

Short-termLong-termShort-termLong-termStandardandPoor’s A-2 BBB+ A-2 BBB+Moody’s P-2 Baal P-2 Baa1

Share Repurchases and Dividend Payments

TheCompanyhastwosharerepurchaseprograms:anopen-marketpurchaseprogramwithanauthorizedaggregatepurchaseamountofupto$750,allofwhichwasavailableforsharerepurchasesasofbothJune30,2016and2015,andaprogramtooffsettheanticipatedimpactofsharedilutionrelatedtoshare-basedawards(theEvergreenProgram),whichhasnoauthorizationlimitastoamountortimingofrepurchases.

SharerepurchasesunderauthorizedprogramswereasfollowsduringthefiscalyearsendedJune30:

2016 2015 2014

Amount Shares(000) Amount

Shares(000) Amount

Shares(000)

Open-marketpurchaseprograms $ - - $ - - $ - -EvergreenProgram 254 2,151 434 4,016 260 3,046Total $ 254 2,151 $ 434 4,016 $ 260 3,046

DividendspershareandtotaldividendsamountpaidwereasfollowsduringthefiscalyearsendedJune30:

2016 2015 2014

Dividendspersharedeclared $3.11 $2.99 $2.87Totaldividendspaid 398 385 368

Contractual Obligations

TheCompanyhadcontractualobligationsasofJune30,2016,payableormaturinginthefollowingfiscalyears:

2017 2018 2019 2020 2021 Thereafter Total

Long-termdebtmaturitiesincludinginterestpayments $ 72 460 48 47 47 1,495 $ 2,169Notesandloanspayable 523 - - - - - 523

Purchaseobligations(1) 150 54 37 12 2 1 256Capitalleases 3 2 1 - - - 6Operatingleases 49 45 38 32 29 135 328

Paymentsrelatedtononqualifiedpostretirementplans(2) 17 18 16 16 15 70 152

Ventureagreementterminalobligation(3) - - - - - 448 448Total $ 814 $ 579 $ 140 $ 107 $ 93 $ 2,149 $ 3,882

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(1)Purchaseobligationsaredefinedaspurchaseagreementsthatareenforceableandlegallybindingandthatcontainspecifiedordeterminablesignificantterms,includingquantity,priceandtheapproximatetimingofthetransaction.Forpurchaseobligationssubjecttovariablepriceand/orquantityprovisions,anestimateofthepriceand/orquantityhasbeenmade.ExamplesoftheCompany’spurchaseobligationsincludecontractstopurchaserawmaterials,commitmentstocontractmanufacturers,commitmentsforinformationtechnologyandrelatedservices,advertisingcontracts,capitalexpenditureagreements,softwareacquisitionandlicensecommitmentsandservicecontracts.Therawmaterialcontractsincludedaboveareenteredintoduringtheregularcourseofbusinessbasedonexpectationsoffuturepurchases.ManyoftheserawmaterialcontractsareflexibletoallowforchangesintheCompany’sbusinessandrelatedrequirements.Ifsuchchangesweretooccur,theCompanybelievesitsexposurecoulddifferfromtheamountslistedabove.AnyamountsreflectedintheconsolidatedbalancesheetsasAccountspayableandaccruedliabilitiesareexcludedfromthetableabove.

(2) Thisamountrepresentsexpectedpaymentsthrough2026.Basedontheaccountingrulesforretirementandpostretirementbenefitplans,theliabilitiesreflectedintheCompany’sconsolidatedbalancesheetsdifferfromtheseexpectedfuturepayments(seeNotestoConsolidatedFinancialStatements).

(3) TheCompanyhasaventureagreementwithTheProcter&GambleCompany(P&G)fortheCompany’sGlad®bags,wrapsandcontainersbusiness.AsofJune30,2016and2015,P&Ghada20%interestintheventure.TheagreementwithP&GwillexpireinJanuary2023,unlessthepartiesdecideonorpriortoJanuary2018,toextendthetermoftheagreementforanother10years.Uponterminationoftheagreement,theCompanyisrequiredtopurchaseP&G’sinterestforcashatfairvalueasestablishedbypredeterminedvaluationprocedures.AsofJune30,2016,theestimatedfairvalueofP&G’sinterestwas$448,ofwhich$302hasbeenrecognizedandisreflectedinOtherliabilitiesintheCompany’sJune30,2016ConsolidatedBalanceSheet.Thedifferencebetweentheestimatedfairvalueandtheamountrecognized,andanyfuturechangesinthefairvalueofP&G’sinterest,ischargedtoCostofproductssoldonastraight-linebasisovertheremaininglifeoftheagreement.TheestimatedfairvalueofP&G’sinterestincreasedsignificantlyin2016andmayincreaseordecreaseupuntilanysuchpurchasebytheCompanyofP&G’sinterest.ThesechangeswillaffecttheamountoffuturechargestoCostofproductssold.RefertoNotestoConsolidatedFinancialStatementsforfurtherdetails.

Off-Balance Sheet Arrangements

Inconjunctionwithdivestituresandothertransactions,theCompanymayprovidetypicalindemnifications(e.g.,indemnificationsforrepresentationsandwarrantiesandretentionofpreviouslyexistingenvironmental,taxandemployeeliabilities)thathavetermsthatvaryindurationandinthepotentialamountofthetotalobligationand,inmanycircumstances,arenotexplicitlydefined.TheCompanyhasnotmade,nordoesitbelievethatitisprobablethatitwillmake,anypaymentsrelatingtoitsindemnifications,andbelievesthatanyreasonablypossiblepaymentswouldnothaveamaterialadverseeffect,individuallyorintheaggregate,ontheCompany’sconsolidatedfinancialstatementstakenasawhole.

TheCompanyhadnotrecordedanyliabilitiesontheaforementionedindemnificationsasofJune30,2016and2015.

AsofJune30,2016and2015,theCompanywasapartytolettersofcreditof$10and$11,respectively,bothprimarilyrelatedtooneofitsinsurancecarriers,ofwhich$0hadbeendrawnupon.

CONTINGENCIES

AsummaryofcontingenciesiscontainedinNote12ofNotestoConsolidatedFinancialStatements.

QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISK

Asamultinationalcompany,theCompanyisexposedtotheimpactofforeigncurrencyfluctuations,changesincommodityprices,interest-rateriskandothertypesofmarketrisk.

Inthenormalcourseofbusiness,whereavailableatareasonablecost,theCompanymanagesitsexposuretomarketriskusingcontractualagreementsandavarietyofderivativeinstruments.TheCompany’sobjectiveinmanagingitsexposuretomarketriskistolimittheimpactoffluctuationsonearningsandcashflowthroughtheuseofswaps,forwardpurchasesandfuturescontracts.Derivativecontractsareenteredintofornon-tradingpurposeswithmajorcredit-worthyinstitutions,therebydecreasingtheriskofcreditloss.

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TheCompanyusesdifferentmethodologies,whennecessary,toestimatethefairvalueofitsderivativecontracts.TheestimatedfairvaluesofthemajorityoftheCompany’scontractsarebasedonquotedmarketprices,tradedexchangemarketpricesorbrokerpricequotations,andrepresenttheestimatedamountsthattheCompanywouldpayorreceivetoterminatethecontracts.

SensitivityAnalysisforDerivativeContracts

Forfiscalyears2016and2015,theCompany’sexposuretomarketriskwasestimatedusingsensitivityanalyses,whichillustratethechangeinthefairvalueofaderivativefinancialinstrumentassuminghypotheticalchangesinforeignexchangerates,commoditypricesorinterestrates.Theresultsofthesensitivityanalysesforforeigncurrencyderivativecontracts,commodityderivativecontractsandinterestratecontractsaresummarizedbelow.Actualchangesinforeignexchangerates,commoditypricesorinterestratesmaydifferfromthehypotheticalchanges,andanychangesinthefairvalueofthecontracts,realorhypothetical,wouldbepartlytofullyoffsetbyaninversechangeinthevalueoftheunderlyinghedgeditems.

ThechangesinthefairvalueofderivativesarerecordedaseitherassetsorliabilitiesintheconsolidatedbalancesheetswithanoffsettonetearningsorOthercomprehensiveincome(loss),dependingonwhetherornot,foraccountingpurposes,thederivativeisdesignatedandqualifiedasacashflowhedge.DuringthefiscalyearsendedJune30,2016,2015and2014,theCompanyhadnohedginginstrumentsdesignatedasfairvaluehedges.IntheeventtheCompanyhascontractsnotdesignatedashedgesforaccountingpurposes,theCompanyrecognizesthechangesinthefairvalueofthesecontractsintheconsolidatedstatementofearnings.

Foreign Currency Risk

TheCompanyseekstominimizetheimpactofcertainforeigncurrencyfluctuationsbyhedgingtransactionalexposureswithforeigncurrencyforwardcontracts.Basedonahypotheticaldecreaseof10%inthevalueoftheU.S.dollarasofJune30,2016andJune30,2015,theestimatedfairvalueoftheCompany’sthen-existingforeigncurrencyderivativecontractswoulddecreaseby$9and$12,respectively,withthecorrespondingimpactincludedinAccumulatedothercomprehensiveincome(loss).Basedonahypotheticalincreaseof10%inthevalueoftheU.S.dollarasofJune30,2016andJune30,2015,theestimatedfairvalueoftheCompany’sthen-existingforeigncurrencyderivativecontractswouldincreaseby$7and$10,respectively,withthecorrespondingimpactincludedinAccumulatedothercomprehensiveincome(loss).

Commodity Price Risk

TheCompanyisexposedtochangesinthepriceofcommoditiesusedasrawmaterialsinthemanufacturingofitsproducts.TheCompanyusesvariousstrategiestomanagecostexposuresoncertainrawmaterialpurchaseswiththeobjectiveofobtainingmorepredictablecostsforthesecommodities,includinglong-termcommoditypurchasecontractsandcommodityderivativecontracts,whereavailableatareasonablecost.Duringfiscalyears2016and2015,theCompany’srawmaterialsexposurespertainingtoderivativecontractsexistedwithjetfuelandsoybeanoil.Basedonahypotheticaldecreaseorincreaseof10%inthesecommoditypricesasofJune30,2016,andJune30,2015,theestimatedfairvalueoftheCompany’sthen-existingcommodityderivativecontractswoulddecreaseorincreaseby$3and$4,respectively,withthecorrespondingimpactincludedinAccumulatedothercomprehensiveincome(loss).

Interest Rate Risk

TheCompanyisexposedtointerestratevolatilitywithregardtoexistingshort-termborrowings,primarilycommercialpaper,andanticipatedfutureissuancesoflong-termdebt.Weightedaverageinterestratesforcommercialpaperborrowingshavebeenlessthan1%duringfiscalyears2016and2015.Assumingaveragevariableratedebtlevelsduringfiscalyears2016and2015,a100basispointincreaseininterestrateswouldincreaseinterestexpensefromcommercialpaperbyapproximately$4and$1,respectively.Assumingaveragevariableratedebtlevelsinfiscalyears2016and2015,adecreaseininterestratestozeropercentwoulddecreaseinterestexpensefromcommercialpaperby$3and$1,respectively.

TheCompanyisalsoexposedtointerestratevolatilitywithregardtoanticipatedfutureissuancesofdebt.PrimaryexposuresincludemovementsinU.S.Treasuryrates.TheCompanyusedinterestrateforwardcontractstoreduceinterestratevolatilityonfixedratelong-termdebtduringfiscalyear2015,buthadnointerestrateforwardcontractpositionsduringfiscalyear2016,andnooutstandingcontractsasofJune30,2016.

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RECENTLYISSUEDACCOUNTINGSTANDARDS

TheCompanyplanstoadoptAccountingStandardsUpdate(ASU)No.2016-09,“Compensation-StockCompensation(Topic718):ImprovementstoEmployeeShare-BasedPaymentAccounting,”inthefirstquarteroffiscalyear2017.Whiletheactualbenefitrealizedmayvarysignificantlygiventheinherentuncertaintyinpredictingfutureshare-basedtransactions,theCompanycurrentlyestimatesthattheadoptionwillresultinapproximatelya4percentagepointbenefittotheCompany’shistoricaleffectivetaxrateof34%to35%forfiscalyear2017.Asummaryofallrecentlyissuedaccountingstandards,includingASU2016-09,iscontainedinNote1ofNotestoConsolidatedFinancialStatements.

CRITICALACCOUNTINGPOLICIESANDESTIMATES

Themethods,estimates,andjudgmentstheCompanyusesinapplyingitsmostcriticalaccountingpolicieshaveasignificantimpactontheresultstheCompanyreportsinitsconsolidatedfinancialstatements.Specificareasrequiringtheapplicationofmanagement’sestimatesandjudgmentinclude,amongothers,assumptionspertainingtoaccrualsforconsumerandtrade-promotionprograms,stock-basedcompensationcosts,pensionandpost-employmentbenefitcosts,futurecashflowsassociatedwithimpairmenttestingofgoodwillandotherlong-livedassets,creditworthinessofcustomers,uncertaintaxpositions,taxvaluationallowancesandlegal,environmentalandinsurancematters.Accordingly,adifferentfinancialpresentationcouldresultdependingonthejudgments,estimatesorassumptionsthatareused.ThemostcriticalaccountingpoliciesandestimatesarethosethataremostimportanttotheportrayaloftheCompany’sfinancialconditionandresults,andrequiretheCompanytomakethemostdifficultandsubjectivejudgments,oftenestimatingtheoutcomeoffutureeventsthatareinherentlyuncertain.TheCompany’smostcriticalaccountingpoliciesandestimatesarerelatedto:revenuerecognition;valuationofgoodwillandintangibleassets;employeebenefits,includingestimatesrelatedtostock-basedcompensationandretirementincomeplans;andincometaxes.TheCompany’scriticalaccountingpoliciesandestimateshavebeenreviewedwiththeAuditCommitteeoftheBoardofDirectors.AsummaryoftheCompany’ssignificantaccountingpoliciesandestimatesiscontainedinNote1ofNotestoConsolidatedFinancialStatements.

RevenueRecognition

Salesarerecognizedasrevenuewhentheriskoflossandtitlepasstothecustomerandwhenallofthefollowinghaveoccurred:afirmsalesarrangementexists,pricingisfixedordeterminableandcollectionisreasonablyassured.Salesarerecordednetofallowancesfortradepromotions,coupons,returnsandotherdiscounts.TheCompanyroutinelycommitstoone-timeorongoingtrade-promotionprogramswithcustomers.Programsincludeshelf-pricereductions,end-of-aisleorin-storedisplaysoftheCompany’sproductsandgraphicsandothertrade-promotionactivitiesconductedbythecustomer.Costsrelatedtotheseprogramsarerecordedasareductionofsales.TheCompany’stradepromotionaccrualsareprimarilybasedonestimatedvolumeandincorporatehistoricalsalesandspendingtrendsbycustomerandcategory.Thedeterminationoftheseestimatedaccrualsrequiresjudgmentandmaychangeinthefutureasaresultofchangesincustomerpromotionparticipation,particularlyfornewprogramsandforprogramsrelatedtotheintroductionofnewproducts.Finaldeterminationofthetotalcostofapromotionisdependentuponcustomersprovidinginformationaboutproofofperformanceandotherinformationrelatedtothepromotionalevent.Thisprocessofanalyzingandsettlingtrade-promotionprogramswithcustomerscouldimpacttheCompany’sresultsofoperationsandtradepromotionaccrualsdependingonhowactualresultsoftheprogramscomparetooriginalestimates.IftheCompany’stradepromotionaccrualestimatesasofJune30,2016weretodifferby10%,theimpactonnetsaleswouldbeapproximately$11.

GoodwillandOtherIntangibleAssets

TheCompanytestsitsgoodwillandotherindefinite-livedintangibleassetsforimpairmentannuallyinthefiscalfourthquarterunlessthereareindicationsduringadifferentinterimperiodthattheseassetsmayhavebecomeimpaired.

Goodwill

Consistentwithfiscalyear2015,theCompany’sreportingunitsforgoodwillimpairmenttestingpurposesareitsdomesticStrategicBusinessUnits(SBUs),Canada,LatinAmericaandAMEA(Asia,MiddleEast,EuropeandAustralia,NewZealand,andSouthAfrica).ThesereportingunitsarecomponentsoftheCompany’sbusinessthatareeitheroperatingsegmentsoronelevelbelowanoperatingsegmentandforwhichdiscretefinancialinformationisavailablethatisreviewedbythemanagersoftherespectiveoperatingsegments.Noinstancesofimpairmentwereidentifiedduringthefiscalyear2016annualimpairmentreview.AlloftheCompany’sreportingunitshadfairvaluesthatexceededrecordedvalues.However,futurechangesinthejudgments,assumptionsandestimatesthatareusedintheimpairmenttestingforgoodwillandindefinite-livedintangibleassetsasdescribedbelowcouldresultinsignificantlydifferentestimatesofthefairvalues.

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Initsevaluationofgoodwillimpairment,theCompanyhastheoptiontofirstassessqualitativefactorssuchasmaturityandstabilityofthereportingunit,magnitudeofexcessfairvalueovercarryingvaluefromtheprioryear’simpairmenttesting,otherreportingunitoperatingresultsaswellasneweventsandcircumstancesimpactingtheoperationsatthereportingunitlevel.Iftheresultofaqualitativetestindicatesapotentialforimpairment,aquantitativetestisperformed.Thequantitativetestisatwo-stepprocess.Inthefirststep,theCompanycomparestheestimatedfairvalueofeachreportingunittoitscarryingvalue.Inallinstances,theestimatedfairvalueexceededthecarryingvalueofthereportingunit.Hadtheestimatedfairvalueofanyreportingunitbeenlessthanitscarryingvalue,theCompanywouldhaveperformedasecondsteptodeterminetheimpliedfairvalueofthereportingunit’sgoodwill.Ifthecarryingamountofareportingunit’sgoodwillhadexceededitsimpliedfairvalue,animpairmentchargewouldhavebeenrecordedforthedifferencebetweenthecarryingamountandtheimpliedfairvalueofthereportingunit’sgoodwill.

Todeterminethefairvalueofareportingunitaspartofitsquantitativetest,theCompanyusesadiscountedcashflow(DCF)approach,asitbelievesthatthisapproachisthemostreliableindicatorofthefairvalueofitsbusinessesandthefairvalueoftheirfutureearningsandcashflows.Underthisapproach,theCompanyestimatesthefuturecashflowsofeachreportingunitanddiscountsthesecashflowsatarateofreturnthatreflectstheirrelativerisk.ThecashflowsusedintheDCFareconsistentwiththosetheCompanyusesinitsinternalplanning,whichgivesconsiderationtoactualbusinesstrendsexperienced,andthebroaderbusinessstrategyforthelongterm.TheotherkeyestimatesandfactorsusedintheDCFinclude,butarenotlimitedto,futuresalesvolumes,revenueandexpensegrowthrates,changesinworkingcapital,foreignexchangerates,currencydevaluation,inflationandaperpetuitygrowthrate.Changesinsuchestimatesortheapplicationofalternativeassumptionscouldproducedifferentresults.

Trademarks and Other Indefinite-Lived Intangible Assets

Fortrademarksandotherintangibleassetswithindefinitelives,theCompanyperformsaquantitativeanalysistotestforimpairment.Whenaquantitativetestisperformed,theestimatedfairvalueofanassetiscomparedtoitscarryingamount.Ifthecarryingamountofsuchassetexceedsitsestimatedfairvalue,animpairmentchargeisrecordedforthedifferencebetweenthecarryingamountandtheestimatedfairvalue.TheCompanyusestheincomeapproachtoestimatethefairvalueofitstrademarksandotherintangibleassetswithindefinitelives.Thisapproachrequiressignificantjudgmentsindeterminingboththeassets’estimatedcashflowsaswellastheappropriatediscountandforeignexchangeratesappliedtothosecashflowstodeterminefairvalue.Changesinsuchestimatesortheuseofalternativeassumptionscouldproducedifferentresults.

Duringfiscalyear2016,theCompanyrecognized$9ofintangibleassetimpairmentcharges,ofwhich$6relatedtotheAplicare®trademarkwithintheCleaningsegment.TheAplicare®trademarkimpairmentwasrecognizedbasedontheanticipatedimpactonfutureresultsfromacompetitivemarketentrant.NoinstancesofimpairmentwereidentifiedasaresultoftheCompany’sfourthquarterannualimpairmentreview.

Finite-Lived Intangible Assets

Finite-livedintangibleassetsarereviewedforpossibleimpairmentwhenevereventsorchangesincircumstancesoccurthatindicatethatthecarryingamountofanasset(orassetgroup)maynotberecoverable.TheCompany’simpairmentreviewrequiressignificantmanagementjudgment,includingestimatingthefuturesuccessofproductlines,futuresalesvolumes,revenueandexpensegrowthrates,alternativeusesfortheassetsandestimatedproceedsfromthedisposaloftheassets.TheCompanyreviewsbusinessplansforpossibleimpairmentindicators.Impairmentoccurswhenthecarryingamountoftheasset(orassetgroup)exceedsitsestimatedfutureundiscountedcashflowsandtheimpairmentisviewedasotherthantemporary.Whenimpairmentisindicated,animpairmentchargeisrecordedforthedifferencebetweentheasset’scarryingvalueanditsestimatedfairvalue.Dependingontheasset,estimatedfairvaluemaybedeterminedeitherbyuseofaDCFmodelorbyreferencetoestimatedsellingvaluesofassetsinsimilarcondition.Theuseofdifferentassumptionswouldincreaseordecreasetheestimatedfairvalueofassetsandwouldincreaseordecreaseanyimpairmentmeasurement.

EmployeeBenefits

TheCompany’scriticalaccountingpoliciesandestimatesinthisarearelatetoitsstock-basedcompensationandretirementincomeprograms.

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Stock-based Compensation

TheCompanygrantsvariousnonqualifiedstock-basedcompensationawardstoeligibleemployees,includingstockoptions,performanceunitsandrestrictedstock.Thestock-basedcompensationexpenseandrelatedincometaxbenefitrecognizedintheconsolidatedstatementofearningsinfiscalyear2016were$45and$17,respectively.AsofJune30,2016,therewas$53ofunrecognizedcompensationcostsrelatedtonon-vestedstockoptions,restrictedstockandperformanceunitawards,whichareexpectedtoberecognizedoveraweightedaverageremainingvestingperiodofoneyear.TheCompanyestimatesthefairvalueofeachstockoptionawardonthedateofgrantusingtheBlack-Scholesvaluationmodel,whichrequiresmanagementtomakeestimatesregardingexpectedoptionlife,stockpricevolatilityandotherassumptions.Groupsofemployeesthathavesimilarhistoricalexercisebehaviorareconsideredseparatelyforvaluationpurposes.Thetotalnumberofstockoptionsexpectedtovestisadjustedbyactualandestimatedforfeitures.Changestotheactualandestimatedforfeitureswillresultinacumulativecatch-upadjustmentintheperiodofchange.

TheuseofdifferentassumptionsintheBlack-Scholesvaluationmodelcouldleadtoadifferentestimateofthefairvalueofeachstockoption.TheexpectedvolatilityisbasedonimpliedvolatilityfrompubliclytradedoptionsontheCompany’sstockatthedateofgrant,historicalimpliedvolatilityoftheCompany’spubliclytradedoptionsandotherfactors.IftheCompany’sassumptionforthevolatilityrateisincreasedbyonepercentagepoint,thefairvalueofoptionsgrantedinfiscalyear2016wouldhaveincreasedby$1.Theexpectedlifeofthestockoptionsisbasedonobservedhistoricalexercisepatterns.IftheCompany’sassumptionfortheexpectedlifeisincreasedbyoneyear,thefairvalueofoptionsgrantedinfiscalyear2016wouldhaveincreasedbylessthan$1.

TheCompany’sperformanceunitgrantsprovidefortheissuanceofcommonstocktocertainmanagerialstaffandexecutivemanagementiftheCompanyachievesspecifiedperformancetargets.Theperformanceperiodisthreeyearsandthepayoutdeterminationismadeattheendofthethree-yearperformanceperiod.Thefairvalueofeachgrantissuedisestimatedonthedateofgrantbasedonthecurrentmarketpriceofthestock.Thetotalamountofcompensationexpenserecognizedreflectsestimatedforfeitureratesandtheinitialassumptionthatperformancegoalswillbeachieved.Compensationexpenseisadjustedbasedonmanagement’sassessmentoftheprobabilitythatperformancegoalswillbeachieved.Ifsuchgoalsarenotmetoritisdeterminedthatachievementofperformancegoalsisnotprobable,previouslyrecognizedcompensationexpenseistruedupinthecurrentperiodtoreflecttheexpectedpayoutlevel.Actualresultscouldmateriallydifferfrompreviousestimates.Ifitisdeterminedthattheperformancegoalswillbeexceeded,additionalcompensationexpenseisrecognized,subjecttoacapof150%oftarget.

Retirement Income Plans

Thedeterminationofnetperiodicpensioncostisbasedonactuarialassumptionsincludingadiscountratetoreflectthetimevalueofmoney,thelong-termrateofreturnonplanassets,employeecompensationratesanddemographicassumptionstodeterminetheprobabilityandtimingofbenefitpayments.Theselectionofassumptionsisbasedonhistoricaltrendsandknowneconomicandmarketconditionsatthetimeofvaluation.Theexpectedlong-termrateofreturnassumptionisbasedonananalysisofhistoricalexperienceoftheportfolioandthesummationofprospectivereturnsforeachassetclassinproportiontothefund’scurrentassetallocation.Theactualnetperiodicpensioncostcoulddifferfromtheexpectedresultsbecauseactuarialassumptionsandestimatesareused.Inthecalculationofpensionexpenserelatedtodomesticplansfor2016,theCompanyusedabeginning-of-yeardiscountrateassumptionof4.2%andalong-termrateofreturnonplanassetsassumptionof4.3%.Theuseofadifferentdiscountrateorlong-termrateofreturnondomesticplanassetscansignificantlyimpactpensionexpense.Forexample,asofJune30,2016,adecreaseof100basispointsinthediscountratewouldincreasethedomesticretirementincomeplans’pensionliabilitybyapproximately$63,anddecreasefiscalyear2016domesticretirementincomeplans’pensionexpenseby$2.A100basispointdecreaseinthelong-termrateofreturnonplanassetswouldincreasefiscalyear2016domesticretirementincomeplans’pensionexpenseby$4.Attheendoffiscalyear2016,thelong-termrateofreturnisassumedtobe4.7%forthedomesticplanassets.Thischangeisaresultofthechangeintheplan’stargetinvestmentallocation.TheCompanyalsohasdefinedbenefitpensionplansforeligibleinternationalemployees,includingCanadianemployees,anddifferentassumptionsareusedinthedeterminationofpensionexpenseforthoseplans,asappropriate.SeeNotestoConsolidatedFinancialStatementsforfurtherdiscussionofpensionandotherretirementplanobligations.

IncomeTaxes

TheCompany’seffectivetaxrateisbasedonincomebytaxjurisdiction,statutorytaxratesandtaxplanningopportunitiesavailabletotheCompanyinthevariousjurisdictionsinwhichtheCompanyoperates.SignificantjudgmentisrequiredindeterminingtheCompany’seffectivetaxrateandinevaluatingitstaxpositions.

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TheCompanymaintainsvaluationallowanceswhenitislikelythatalloraportionofadeferredtaxassetwillnotberealized.ChangesinvaluationallowancesfromperiodtoperiodareincludedintheCompany’sincometaxprovisionintheperiodofchange.Indeterminingwhetheravaluationallowanceiswarranted,theCompanytakesintoaccountsuchfactorsaspriorearningshistory,expectedfutureearnings,unsettledcircumstancesthat,ifunfavorablyresolved,wouldadverselyaffecttheutilizationofadeferredtaxasset,statutorycarry-backandcarry-forwardperiodsandtaxstrategiesthatcouldpotentiallyenhancethelikelihoodofrealizationofadeferredtaxasset.ValuationallowancesmaintainedbytheCompanyrelatemostlytodeferredtaxassetsarisingfromtheCompany’scurrentlyanticipatedinabilitytousenetoperatinglossesincertainforeigncountries.

Inadditiontovaluationallowances,theCompanyprovidesforuncertaintaxpositionswhensuchtaxpositionsdonotmeetcertainrecognitionthresholdsormeasurementstandards.Amountsforuncertaintaxpositionsareadjustedinquarterswhennewinformationbecomesavailableorwhenpositionsareeffectivelysettled.

AsofJune30,2016,theliabilityrecordedforuncertaintaxpositions,excludingassociatedinterestandpenalties,wasapproximately$37.Sinceauditoutcomesandthetimingofauditsettlementsaresubjecttosignificantuncertainty,liabilitiesforuncertaintaxpositionsareexcludedfromthecontractualobligationstable(seeNotestoConsolidatedFinancialStatements).

UnitedStatesincometaxesandforeignwithholdingtaxesarenotprovidedwhenforeignearningsareindefinitelyreinvested.TheCompanydetermineswhetheritsforeignsubsidiarieswillinvesttheirundistributedearningsindefinitelyandreassessesthisdeterminationonaperiodicbasis.AchangetotheCompany’sdeterminationmaybewarrantedbasedontheCompany’sexperienceaswellasplansregardingfutureinternationaloperationsandexpectedremittances.ChangesintheCompany’sdeterminationwouldlikelyrequireanadjustmenttotheincometaxprovisioninthequarterinwhichthedeterminationismade.

SUMMARYOFNON-GAAPFINANCIALMEASURES

Thenon-GAAPfinancialmeasuresincludedinthisMD&AandExhibit99.3andthereasonsmanagementbelievestheyareusefultoinvestorsaredescribedbelow.ThesemeasuresshouldbeconsideredsupplementalinnatureandarenotintendedtobeasubstitutefortherelatedfinancialinformationpreparedinaccordancewithU.S.GAAP.Inaddition,thesemeasuresmaynotbethesameassimilarlynamedmeasurespresentedbyothercompanies.

Freecashflowiscalculatedasnetcashprovidedbycontinuingoperationslesscapitalexpendituresrelatedtocontinuingoperations.TheCompany’smanagementusesthismeasureandfreecashflowasapercentageofnetsalestohelpassessthecashgenerationabilityofthebusinessandfundsavailableforinvestingactivities,suchasacquisitions,investinginthebusinesstodrivegrowthandfinancingactivities,includingdebtpayments,dividendpaymentsandsharerepurchases.Freecashflowdoesnotrepresentcashavailableonlyfordiscretionaryexpenditures,sincetheCompanyhasmandatorydebtservicerequirementsandothercontractualandnon-discretionaryexpenditures.Referto“Freecashflow”and“Freecashflowasapercentageofnetsales”aboveforareconciliationofthesenon-GAAPmeasures.

EBITrepresentsearningsfromcontinuingoperationsbeforeincometaxes,interestincomeandinterestexpense.EBITmarginistheratioofEBITtonetsales.Thecompany'smanagementbelievesthesemeasuresprovideusefuladditionalinformationtoinvestorsabouttrendsinthecompany'soperationsandareusefulforperiod-over-periodcomparisons.

Currency-neutralnetsalesgrowthrepresentsU.S.GAAPnetsalesgrowthexcludingtheimpactofthechangeinforeigncurrencyexchangerates.TheCompany’smanagementbelievesthesemeasuresprovideusefuladditionalinformationtoinvestorsaboutchangesintheCompany’scorebusinessoperationswithouttheunpredictabilityandvolatilityofcurrencyfluctuations.Thefollowingtablepresentsthecurrency-neutralnetsalesgrowthreconciliationforfiscalyear2016:

2016

Netsalesgrowth–GAAP 2%Less:foreignexchangeimpact (3)Currency-neutralnetsalesgrowth–non-GAAP 5%

20

Economicprofit(EP)isdefinedbytheCompanyasearningsfromcontinuingoperationsbeforeincometaxes,excludingnoncashU.S.GAAPrestructuringandintangibleassetimpairmentcosts,andinterestexpense;lessanamountoftaxbasedontheeffectivetaxrateandlessachargeequaltoaveragecapitalemployedmultipliedbyacostofcapitalrate.EPisakeyfinancialmetrictheCompany’smanagementusestoevaluatebusinessperformanceandallocateresources,andisacomponentindeterminingemployeeincentivecompensation.TheCompany’smanagementbelievesEPprovidesadditionalperspectivetoinvestorsaboutfinancialreturnsgeneratedbythebusinessandrepresentsprofitgeneratedoverandabovethecostofcapitalusedbythebusinesstogeneratethatprofit.RefertoExhibit99.3forareconciliationofEPtoearningsfromcontinuingoperationsbeforeincometaxes.

CAUTIONARYSTATEMENT

ThisAnnualReportonForm10-K(thisReport),includingtheexhibitsheretoandtheinformationincorporatedbyreferenceherein,contains“forward-lookingstatements”withinthemeaningofSection27AoftheSecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended,andsuchforward-lookingstatementsinvolverisksanduncertainties.Exceptforhistoricalinformation,statementsaboutfuturevolume,sales,foreigncurrencies,costs,costsavings,margin,earnings,earningspershare,dilutedearningspershare,foreigncurrencyexchangerates,cashflows,plans,objectives,expectations,growthorprofitability,areforward-lookingstatementsbasedonmanagement’sestimates,assumptionsandprojections.Wordssuchas“could,”“may,”“expects,”“anticipates,”“targets,”“goals,”“projects,”“intends,”“plans,”“believes,”“seeks,”“estimates,”“predicts”andvariationsonsuchwords,andsimilarexpressionsthatreflectourcurrentviewswithrespecttofutureeventsandoperationalandfinancialperformance,areintendedtoidentifysuchforward-lookingstatements.Theseforward-lookingstatementsareonlypredictions,subjecttorisksanduncertainties,andactualresultscoulddiffermateriallyfromthosediscussed.Importantfactorsthatcouldaffectperformanceandcauseresultstodiffermateriallyfrommanagement’sexpectationsaredescribedinthesectionsentitled“RiskFactors”and“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”inthisReport,asupdatedfromtimetotimeintheCompany’sSecuritiesandExchangeCommissionfilings.Thesefactorsinclude,butarenotlimitedto:

● intensecompetitionintheCompany’smarkets;● worldwide,regionalandlocaleconomicconditionsandfinancialmarketvolatility;● theabilityoftheCompanytodrivesalesgrowth,increasepriceandmarketshare,growitsproductcategoriesandachievefavorableproductandgeographic

mix;● volatilityandincreasesincommoditycostssuchasresin,sodiumhypochloriteandagriculturalcommodities,andincreasesinenergy,transportationorother

costs;● dependenceonkeycustomersandrisksrelatedtocustomerconsolidationandorderingpatterns;● risksrelatedtorelianceoninformationtechnologysystems,includingpotentialsecuritybreaches,cyber-attacks,privacybreachesordatabreachesthat

resultintheunauthorizeddisclosureofconsumer,customer,employeeorCompanyinformation,orserviceinterruptions;● costsresultingfromgovernmentregulations;● theabilityoftheCompanytosuccessfullymanageglobalpolitical,legal,taxandregulatoryrisks,includingchangesinregulatoryoradministrativeactivity;● risksrelatedtointernationaloperations,includingpoliticalinstability;government-imposedpricecontrolsorotherregulations;foreigncurrencyexchange

ratecontrols,includingperiodicchangesinsuchcontrols,fluctuationsanddevaluations;laborclaims,laborunrestandinflationarypressures,particularlyinArgentina;andpotentialharmandliabilitiesfromtheuse,storageandtransportationofchlorineincertaininternationalmarketswherechlorineisusedintheproductionofbleach;andthepossibilityofnationalization,expropriationofassetsorothergovernmentaction;

● risksrelatingtoacquisitions,newventuresanddivestitures,andassociatedcosts,includingthepotentialforassetimpairmentchargesrelatedto,amongothers,intangibleassetsandgoodwill;

● theabilityoftheCompanytodevelopandintroducecommerciallysuccessfulproducts;● supplydisruptionsandotherrisksinherentinrelianceonalimitedbaseofsuppliers;● theimpactofproductliabilityclaims,laborclaimsandotherlegalproceedings,includinginforeignjurisdictions● thesuccessoftheCompany’sbusinessstrategies;● theabilityoftheCompanytoimplementandgenerateanticipatedcostsavingsandefficiencies;● theCompany’sabilitytoattractandretainkeypersonnel;● theCompany’sabilitytomaintainitsbusinessreputationandthereputationofitsbrands;● environmentalmatters,includingcostsassociatedwiththeremediationofpastcontaminationandthehandlingand/ortransportationofhazardous

substances;● theimpactofnaturaldisasters,terrorismandothereventsbeyondtheCompany’scontrol;● theCompany’sabilitytomaximize,assertanddefenditsintellectualpropertyrights;● anyinfringementorclaimedinfringementbytheCompanyofthird-partyintellectualpropertyrights;

21

● risksrelatedtothepotentialincreaseintheCompany’spurchasepriceforP&G’sinterestintheGlad®businessandtheimpactfromthedecisiononwhetherornottoextendthetermoftherelatedagreementwithP&G;

● theeffectoftheCompany’sindebtednessandcreditratingonitsbusinessoperationsandfinancialresults;● risksrelatedtotheCompany’sdiscontinuationofoperationsinVenezuela;● theCompany’sabilitytopayanddeclaredividendsorrepurchaseitsstockinthefuture;● theCompany’sabilitytomaintainaneffectivesystemofinternalcontrols,includingaftercompletingacquisitions;● uncertaintiesrelatingtotaxpositions,taxdisputesandchangesintheCompany’staxrate;● theaccuracyoftheCompany’sestimatesandassumptionsonwhichitsearningsguidanceisbased;and● theimpactsofpotentialstockholderactivism.

TheCompany’sforward-lookingstatementsinthisReportarebasedonmanagement’scurrentviewsandassumptionsregardingfutureeventsandspeakonlyasoftheirdates.TheCompanyundertakesnoobligationtopubliclyupdateorreviseanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise,exceptasrequiredbythefederalsecuritieslaws.

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MANAGEMENT’SREPORTONINTERNALCONTROLOVERFINANCIALREPORTING

TheCompany’smanagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting.TheCompany’sinternalcontroloverfinancialreportingisaprocessdesignedunderthesupervisionofitsChiefExecutiveOfficerandChiefFinancialOfficertoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoftheCompany’sfinancialstatementsforexternalreportinginaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditionsorthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

ManagementevaluatedtheeffectivenessoftheCompany’sinternalcontroloverfinancialreportingusingthecriteriasetforthbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO)inInternalControl-IntegratedFrameworkpublishedin2013.Management,underthesupervisionandwiththeparticipationoftheCompany’sChiefExecutiveOfficerandChiefFinancialOfficer,assessedtheeffectivenessoftheCompany’sinternalcontroloverfinancialreportingatJune30,2015,andconcludedthatitiseffective.

ManagementhasexcludedRenewLifefromitsassessmentofinternalcontroloverfinancialreportingasofJune30,2016becauseRenewLifewasacquiredbytheCompanyonMay2,2016.Theacquiredbusiness’internalcontroloverfinancialreportingandrelatedprocesseshavenotbeenintegratedintotheCompany’sexistingsystemsandinternalcontroloverfinancialreporting,andhavebeenexcludedfrommanagement’sassessmentoftheeffectivenessofinternalcontroloverfinancialreportingasofJune30,2016.RenewLife,whichisincludedintheJune30,2016consolidatedfinancialstatements,constitutes$344and$284oftotalandnetassets,respectively,asofJune30,2016and$21and$(6)ofnetsalesandnetearnings,respectively,fortheyearthenended.

TheCompany’sindependentregisteredpublicaccountingfirm,Ernst&YoungLLP,hasauditedtheeffectivenessoftheCompany’sinternalcontroloverfinancialreportingasofJune30,2016.

23

REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TheBoardofDirectorsandStockholdersofTheCloroxCompany

WehaveauditedtheaccompanyingconsolidatedbalancesheetsofTheCloroxCompanyasofJune30,2016and2015,andtherelatedconsolidatedstatementsofearnings,comprehensiveincome,stockholders’equityandcashflowsforeachofthethreeyearsintheperiodendedJune30,2016.OurauditsalsoincludedthefinancialstatementscheduleinExhibit99.2.ThesefinancialstatementsandschedulearetheresponsibilityoftheCompany’smanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsandschedulebasedonouraudits.

WeconductedourauditsinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditsprovideareasonablebasisforouropinion.

Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,theconsolidatedfinancialpositionofTheCloroxCompanyatJune30,2016and2015,andtheconsolidatedresultsofitsoperationsanditscashflowsforeachofthethreeyearsintheperiodendedJune30,2016,inconformitywithU.S.generallyacceptedaccountingprinciples.Also,inouropinion,therelatedfinancialstatementschedule,whenconsideredinrelationtothebasicfinancialstatementstakenasawhole,presentsfairlyinallmaterialrespectstheinformationsetforththerein.

Wealsohaveaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates),TheCloroxCompany’sinternalcontroloverfinancialreportingasofJune30,2016,basedoncriteriaestablishedinInternalControl-IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(2013framework)andourreportdatedAugust16,2016expressedanunqualifiedopinionthereon.

/s/Ernst&YoungLLP

SanFrancisco,CAAugust16,2016

24

REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TheBoardofDirectorsandStockholdersofTheCloroxCompany

WehaveauditedTheCloroxCompany’sinternalcontroloverfinancialreportingasofJune30,2016,basedoncriteriaestablishedinInternalControl-IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(2013framework)(theCOSOcriteria).TheCloroxCompany’smanagementisresponsibleformaintainingeffectiveinternalcontroloverfinancialreporting,andforitsassessmentoftheeffectivenessofinternalcontroloverfinancialreportingincludedintheaccompanyingManagement’sReportonInternalControlOverFinancialReporting.Ourresponsibilityistoexpressanopiniononthecompany’sinternalcontroloverfinancialreportingbasedonouraudit.

WeconductedourauditinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhethereffectiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.Ourauditincludedobtaininganunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterialweaknessexists,testingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk,andperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditprovidesareasonablebasisforouropinion.

Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

AsindicatedintheaccompanyingManagement’sReportonInternalControlOverFinancialReporting,management’sassessmentofandconclusionontheeffectivenessofinternalcontroloverfinancialreportingdidnotincludetheinternalcontrolsofRenewLife,whichisincludedintheJune30,2016consolidatedfinancialstatementsofTheCloroxCompanyandconstituted$344and$284oftotalandnetassets,respectively,asofJune30,2016and$21and$(6)ofnetsalesandnetearnings,respectively,fortheyearthenended.OurauditofinternalcontroloverfinancialreportingofTheCloroxCompanyalsodidnotincludeanevaluationoftheinternalcontroloverfinancialreportingofRenewLife.

Inouropinion,TheCloroxCompanymaintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofJune30,2016,basedontheCOSOcriteria.

Wealsohaveaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates),theconsolidatedbalancesheetsasofJune30,2016and2015,andtherelatedconsolidatedstatementsofearnings,comprehensiveincome,stockholders’equity,andcashflowsforeachofthethreeyearsintheperiodendedJune30,2016ofTheCloroxCompanyandourreportdatedAugust16,2016expressedanunqualifiedopinionthereon.

/s/Ernst&YoungLLP

SanFrancisco,CAAugust16,2016

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CONSOLIDATEDSTATEMENTSOFEARNINGSTheCloroxCompany

YearsendedJune30

Dollarsinmillions,exceptshareandpersharedata 2016 2015 2014

Netsales $ 5,761 $ 5,655 $ 5,514Costofproductssold 3,163 3,190 3,158Grossprofit 2,598 2,465 2,356Sellingandadministrativeexpenses 806 798 751Advertisingcosts 587 523 503Researchanddevelopmentcosts 141 136 125Interestexpense 88 100 103Other(income)expense,net (7) (13) (10)Earningsfromcontinuingoperationsbeforeincometaxes 983 921 884Incometaxesoncontinuingoperations 335 315 305Earningsfromcontinuingoperations 648 606 579Lossesfromdiscontinuedoperations,netoftax - (26) (21)Netearnings $ 648 $ 580 $ 558Netearnings(losses)pershareBasicContinuingoperations $ 5.01 $ 4.65 $ 4.47Discontinuedoperations - (0.20) (0.16)Basicnetearningspershare $ 5.01 $ 4.45 $ 4.31DilutedContinuingoperations $ 4.92 $ 4.57 $ 4.39Discontinuedoperations - (0.20) (0.16)Dilutednetearningspershare $ 4.92 $ 4.37 $ 4.23Weightedaveragesharesoutstanding(inthousands)Basic 129,472 130,310 129,558Diluted 131,717 132,776 131,742

SeeNotestoConsolidatedFinancialStatements

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CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINCOMETheCloroxCompany

YearsendedJune30Dollarsinmillions 2016 2015 2014

Earningsfromcontinuingoperations $648 $606 $579Lossesfromdiscontinuedoperations,netoftax - (26) (21)Netearnings 648 580 558Othercomprehensive(losses)income:Foreigncurrencyadjustments,netoftax (53) (54) (37)Netunrealizedgains(losses)onderivatives,netoftax 9 (14) (9)Pensionandpostretirementbenefitadjustments,netoftax (24) (17) (4)Totalothercomprehensive(losses)income,netoftax (68) (85) (50)Comprehensiveincome $ 580 $ 495 $ 508

SeeNotestoConsolidatedFinancialStatements

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CONSOLIDATEDBALANCESHEETSTheCloroxCompany

AsofJune30

Dollarsinmillions,exceptshareandpersharedata 2016 2015

ASSETSCurrentassetsCashandcashequivalents $ 401 $ 382Receivables,net 569 519Inventories,net 443 385Othercurrentassets 72 143Totalcurrentassets 1,485 1,429Property,plantandequipment,net 906 918Goodwill 1,197 1,067Trademarks,net 657 535Otherintangibleassets,net 78 50Otherassets 195 165Totalassets $ 4,518 $ 4,164LIABILITIESANDSTOCKHOLDERS’EQUITYCurrentliabilitiesNotesandloanspayable $ 523 $ 95Currentmaturitiesoflong-termdebt - 300Accountspayableandaccruedliabilities 1,035 979Incometaxespayable - 31Totalcurrentliabilities 1,558 1,405Long-termdebt 1,797 1,796Otherliabilities 784 750Deferredincometaxes 82 95Totalliabilities 4,221 4,046CommitmentsandcontingenciesStockholders’equityPreferredstock:$1.00parvalue;5,000,000sharesauthorized;noneissuedoroutstanding - -Commonstock:$1.00parvalue;750,000,000sharesauthorized;158,741,461sharesissuedasofJune30,2016and2015;and129,355,263and128,614,310sharesoutstandingasofJune30,2016and2015,respectively 159 159Additionalpaid-incapital 868 775Retainedearnings 2,163 1,923Treasuryshares,atcost:29,386,198and30,127,151sharesasofJune30,2016and2015,respectively (2,323) (2,237)Accumulatedothercomprehensivenet(losses)income (570) (502)Stockholders’equity 297 118Totalliabilitiesandstockholders’equity $ 4,518 $ 4,164

SeeNotestoConsolidatedFinancialStatements

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CONSOLIDATEDSTATEMENTSOFSTOCKHOLDERS’EQUITYTheCloroxCompany

CommonStock AdditionalPaid-inCapital

TreasuryShares Accumulated

OtherComprehensive

Net(Losses)IncomeDollarsinmillions Shares(000) Amount

RetainedEarnings

Shares(000) Amount Total

BalanceasofJune30,2013 158,741$ 159$ 661$1,561 (28,375) $(1,868) $(367) $ 146

Netearnings 558 558

Othercomprehensiveloss (50) (50)

Accrueddividends (374) (374)

Stock-basedcompensation 36 36

Otheremployeestockplanactivities 12 (6) 1,476 92 98

Treasurystockpurchased (3,046) (260) (260)

BalanceasofJune30,2014 158,741 159 709 1,739 (29,945) (2,036) (417) 154

Netearnings 580 580

Othercomprehensiveloss (85) (85)

Accrueddividends (391) (391)

Stock-basedcompensation 32 32

Otheremployeestockplanactivities 34 (5) (4,198) 233 262

Treasurystockpurchased 4,016 (434) (434)

BalanceasofJune30,2015 158,741 159 775 1,923 (30,127) (2,237) (502) 118

Netearnings 648 648

Othercomprehensiveloss (68) (68)

Accrueddividends (406) (406)

Stock-basedcompensation 45 45

Otheremployeestockplanactivities 48 (2) 2,892 168 214

Treasurystockpurchased (2,151) (254) (254)

BalanceasofJune30,2016 158,741 $ 159 $ 868 $ 2,163 (29,386) $ (2,323) $ (570) $ 297

SeeNotestoConsolidatedFinancialStatements

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CONSOLIDATEDSTATEMENTSOFCASHFLOWSTheCloroxCompanyYearsendedJune30Dollarsinmillions 2016 2015 2014

Operatingactivities:Netearnings $ 648 $ 580 $ 558Deduct:Lossesfromdiscontinuedoperations,netoftax - (26) (21)Earningsfromcontinuingoperations 648 606 579Adjustmentstoreconcileearningsfromcontinuingoperationstonetcashprovidedbycontinuingoperations:Depreciationandamortization 165 169 177Stock-basedcompensation 45 32 36Deferredincometaxes 5 (16) (21)Settlementofinterestrateforwardcontracts - (25) -Other 1 (17) 6Changesin:Receivables,net (52) 6 20Inventories,net (45) (25) 1Othercurrentassets 6 6 5Accountspayableandaccruedliabilities 57 93 (12)Incometaxespayable (62) 29 (5)Netcashprovidedbycontinuingoperations 768 858 786Netcashprovidedby(usedfor)discontinuedoperations 10 16 (19)Netcashprovidedbyoperations 778 874 767Investingactivities:Capitalexpenditures (172) (125) (137)Businessacquired,netofcashacquired (290) - -Other 32 19 -Netcashusedforinvestingactivitiesfromcontinuingoperations (430) (106) (137)Netcashusedforinvestingactivitiesbydiscontinuedoperations - - (1)Netcashusedforinvestingactivities (430) (106) (138)Financingactivities:Notesandloanspayable,net 426 (48) (60)Long-termdebtborrowings,netofissuancecosts - 495 -Long-termdebtrepayments (300) (575) -Treasurystockpurchased (254) (434) (260)Cashdividendspaid (398) (385) (368)Issuanceofcommonstockforemployeestockplansandother 210 251 96Netcashusedforfinancingactivities (316) (696) (592)Effectofexchangeratechangesoncashandcashequivalents (13) (19) (7)Netincreaseincashandcashequivalents 19 53 30Cashandcashequivalents:Beginningofyear 382 329 299Endofyear $ 401 $ 382 $ 329Supplementalcashflowinformation:Interestpaid $ 79 $ 104 $ 76Incometaxespaid,netofrefunds 323 236 312Noncashfinancingactivities:Cashdividendsdeclaredandaccrued,butnotpaid 104 99 95

SeeNotestoConsolidatedFinancialStatements

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NOTESTOCONSOLIDATEDFINANCIALSTATEMENTSTheCloroxCompany

(Dollarsinmillions,exceptshareandpersharedata)

NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

NatureofOperationsandBasisofPresentation

TheCompanyisprincipallyengagedintheproduction,marketingandsalesofconsumerproductsthroughmassretailoutletsandgrocery,e-commercechannels,wholesaledistributorsandmedicalsupplydistributors.TheconsolidatedfinancialstatementsincludethestatementsoftheCompanyanditswhollyownedandcontrolledsubsidiaries.Allsignificantintercompanytransactionsandaccountswereeliminatedinconsolidation.Certainprioryearreclassificationsweremadeintheconsolidatedfinancialstatementsandrelatednotestotheconsolidatedfinancialstatementstoconformtothecurrentyearpresentation.

EffectiveSeptember22,2014,theCompany’sVenezuelaaffiliate,CorporaciónCloroxdeVenezuelaS.A.(CloroxVenezuela),discontinueditsoperations.Consequently,theCompanypresentsthefinancialresultsofCloroxVenezuelaasadiscontinuedoperationintheconsolidatedfinancialstatementsforallperiodspresentedherein.

UseofEstimates

ThepreparationoftheseconsolidatedfinancialstatementsinconformitywithgenerallyacceptedaccountingprinciplesintheUnitedStatesofAmerica(U.S.GAAP)requiresmanagementtoreachopinionsastoestimatesandassumptionsthataffectreportedamountsandrelateddisclosures.Specificareasrequiringmanagement’sopiniononestimatesandjudgmentsincludeassumptionspertainingtoaccrualsforconsumerandtrade-promotionprograms,stock-basedcompensationcosts,pensionandpost-employmentbenefitcosts,futurecashflowsassociatedwithimpairmenttestingofgoodwillandotherlong-livedassets,thecreditworthinessofcustomers,uncertaintaxpositions,taxvaluationallowancesandlegal,environmentalandinsurancematters.Actualresultscouldmateriallydifferfromestimatesandassumptionsmade.

CashandCashEquivalents

Cashequivalentsconsistofhighlyliquidinstruments,timedepositsandmoneymarketfundswithaninitialmaturityatpurchaseofthreemonthsorless.Thefairvalueofcashandcashequivalentsapproximatesthecarryingamount.

TheCompany’scashpositionincludesamountsheldbyforeignsubsidiariesand,asaresult,therepatriationofcertaincashbalancesfromsomeoftheCompany’sforeignsubsidiariescouldresultinadditionaltaxcostsintheUnitedStatesandincertainforeignjurisdictions.However,thesecashbalancesaregenerallyavailablewithoutlegalrestrictiontofundlocalbusinessoperations.Inaddition,aportionoftheCompany’scashbalanceisheldinU.S.dollarsbyforeignsubsidiaries,whosefunctionalcurrencyistheirlocalcurrency.SuchU.S.dollarbalancesarereportedontheforeignsubsidiaries’books,intheirfunctionalcurrency,withtheimpactfromforeigncurrencyexchangeratedifferencesrecordedinOther(income)expense,net.TheCompany’scashholdingswereasfollowsasofJune30:

2016 2015

U.S.dollarbalancesheldbyU.S.dollarfunctionalcurrencysubsidiariesandatparent $249 $221Non-U.S.dollarbalancesheldbynon-U.S.dollarfunctionalcurrencysubsidiaries 133 142U.S.dollarbalancesheldbynon-U.S.dollarfunctionalcurrencysubsidiaries 19 19Non-U.S.dollarbalancesheldbyU.S.dollarfunctionalcurrencysubsidiaries - -Total $ 401 $ 382

AsofJune30,2016and2015,theCompanyhad$4and$3ofrestrictedcash,respectively,whichisprimarilyrelatedtofiscalyear2012acquisitions.RestrictedcashwasincludedinOtherassetsasofJune30,2016andinOthercurrentassetsasofJune30,2015.

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NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

Inventories

Inventoriesarestatedatthelowerofcostormarket.Whennecessary,theCompanyprovidesallowancestoadjustthecarryingvalueofitsinventorytothelowerofcostormarket,includinganycoststosellordispose.Appropriateconsiderationisgiventoobsolescence,excessiveinventorylevels,productdeteriorationandotherfactorsinevaluatingnetrealizablevalueforthepurposesofdeterminingthelowerofcostormarket.

Property,PlantandEquipmentandFinite-LivedIntangibleAssets

Property,plantandequipmentandfinite-livedintangibleassetsarestatedatcost.Depreciationandamortizationexpensearecalculatedbythestraight-linemethodusingtheestimatedusefullivesorlivesdeterminedbyleasecontractsfortherelatedassets.Thetablebelowprovidesestimatedusefullivesofproperty,plantandequipmentbyassetclassification.

Estimated

UsefulLives

Buildingsandleaseholdimprovements 10-40yearsLandimprovements 10-30yearsMachineryandequipment 3-15yearsComputerequipment 3-5yearsCapitalizedsoftwarecosts 3-7years

Property,plantandequipmentandfinite-livedintangibleassetsarereviewedforimpairmentwhenevereventsorchangesincircumstancesoccurthatindicatethatthecarryingamountofanasset(orassetgroup)maynotbefullyrecoverable.Theriskofimpairmentisinitiallyassessedbasedonanestimateoftheundiscountedcashflowsatthelowestlevelforwhichidentifiablecashflowsexist.Impairmentoccurswhenthecarryingvalueoftheassetexceedstheestimatedfutureundiscountedcashflowsgeneratedbytheasset.Whenimpairmentisindicated,animpairmentchargeisrecordedforthedifferencebetweenthecarryingvalueoftheassetanditsestimatedfairmarketvalue.Dependingontheasset,estimatedfairmarketvaluemaybedeterminedeitherbyuseofadiscountedcashflowmodelorbyreferencetoestimatedsellingvaluesofassetsinsimilarcondition.

CapitalizationofSoftwareCosts

TheCompanycapitalizescertainqualifyingcostsincurredintheacquisitionanddevelopmentofsoftwareforinternaluse,includingthecostsofthesoftware,materials,consultants,interestandpayrollandpayroll-relatedcostsforemployeesduringtheapplicationdevelopmentstage.Internalandexternalcostsincurredduringthepreliminaryprojectstageandpostimplementation-operationstage,mainlytrainingandmaintenancecosts,areexpensedasincurred.Oncetheapplicationissubstantiallycompleteandreadyforitsintendeduse,qualifyingcostsareamortizedonastraight-linebasisoverthesoftware’sestimatedusefullife.

ImpairmentReviewofGoodwillandIndefinite-LivedIntangibleAssets

TheCompanytestsitsgoodwill,trademarkswithindefinitelivesandotherindefinite-livedintangibleassetsannuallyforimpairmentinthefiscalfourthquarterunlessthereareindicationsduringadifferentinterimperiodthattheseassetsmayhavebecomeimpaired.

Withrespecttogoodwill,theCompanyhastheoptiontofirstassessqualitativefactorssuchasmaturityandstabilityofthereportingunit,magnitudeofexcessfairvalueovercarryingvaluefromtheprioryear’simpairmenttesting,otherreportingunitspecificoperatingresultsaswellasneweventsandcircumstancesimpactingtheoperationsatthereportingunitlevel.Iftheresultofaqualitativetestindicatesapotentialforimpairmentofareportingunit,aquantitativetestisperformed.Thequantitativetestisatwo-stepprocess.Inthefirststep,theCompanycomparestheestimatedfairvalueofthereportingunittoitscarryingvalue.Inallinstances,theestimatedfairvalueexceededthecarryingvalueofthereportingunit.Hadtheestimatedfairvalueofanyreportingunitbeenlessthanitscarryingvalue,theCompanywouldhaveperformedasecondsteptodeterminetheimpliedfairvalueofthereportingunit’sgoodwill.Ifthecarryingamountofareportingunit’sgoodwillhadexceededitsimpliedfairvalue,animpairmentchargewouldhavebeenrecordedforthedifferencebetweenthecarryingamountandtheimpliedfairvalueofthereportingunit’sgoodwill.

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NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

Todeterminethefairvalueofareportingunitaspartofitsquantitativetest,theCompanyusesadiscountedcashflow(DCF)approach,asitbelievesthatthisapproachisthemostreliableindicatorofthefairvalueofitsbusinessesandthefairvalueoftheirfutureearningsandcashflows.Underthisapproach,theCompanyestimatesthefuturecashflowsofeachreportingunitanddiscountsthesecashflowsatarateofreturnthatreflectstheirrelativerisk.ThecashflowsusedintheDCFareconsistentwiththosetheCompanyusesinitsinternalplanning,whichgivesconsiderationtoactualbusinesstrendsexperienced,andthebroaderbusinessstrategyforthelongterm.TheotherkeyestimatesandfactorsusedintheDCFinclude,butarenotlimitedto,futuresalesvolumes,revenueandexpensegrowthrates,changesinworkingcapital,foreignexchangerates,currencydevaluation,inflationandaperpetuitygrowthrate.Changesinsuchestimatesortheapplicationofalternativeassumptionscouldproducedifferentresults.

Fortrademarksandotherintangibleassetswithindefinitelives,theCompanyperformsaquantitativeanalysistotestforimpairment.Whenaquantitativetestisperformed,theestimatedfairvalueofanassetiscomparedtoitscarryingamount.Ifthecarryingamountofsuchassetexceedsitsestimatedfairvalue,animpairmentchargeisrecordedforthedifferencebetweenthecarryingamountandtheestimatedfairvalue.TheCompanyusestheincomeapproachtoestimatethefairvalueofitstrademarksandotherintangibleassetswithindefinitelives.Thisapproachrequiressignificantjudgmentsindeterminingboththeassets’estimatedcashflowsaswellastheappropriatediscountandforeignexchangeratesappliedtothosecashflowstodeterminefairvalue.Changesinsuchestimatesortheuseofalternativeassumptionscouldproducedifferentresults.

Stock-basedCompensation

TheCompanygrantsvariousnonqualifiedstock-basedcompensationawardstoeligibleemployees,includingstockoptionsandperformanceunits.

Forstockoptions,theCompanyestimatesthefairvalueofeachawardonthedateofgrantusingtheBlack-Scholesvaluationmodel,whichrequiresmanagementtomakeestimatesregardingexpectedoptionlife,stockpricevolatilityandotherassumptions.Groupsofemployeesthathavesimilarhistoricalexercisebehaviorareconsideredseparatelyforvaluationpurposes.TheCompanyestimatesstockoptionforfeituresbasedonhistoricaldataforeachemployeegrouping.Thetotalnumberofstockoptionsexpectedtovestisadjustedbyactualandestimatedforfeitures.Changestotheactualandestimatedforfeitureswillresultinacumulativecatch-upadjustmentintheperiodofchange.Compensationexpenseisrecordedbyamortizingthegrantdatefairvaluesonastraight-linebasisoverthevestingperiod,adjustedforestimatedforfeitures.

TheCompany’sperformanceunitgrantsprovidefortheissuanceofcommonstocktocertainmanagerialstaffandexecutivemanagementiftheCompanyachievesspecifiedperformancetargets.Thenumberofsharesissuedaredependentuponvestingandtheachievementofspecifiedperformancetargets.Theperformanceperiodisthreeyearsandthepayoutdeterminationismadeattheendofthethree-yearperformanceperiod.Performanceunitgrantsreceivedividendsearnedduringthevestingperioduponvesting.Thefairvalueofeachgrantissuedisestimatedonthedateofgrantbasedonthecurrentmarketpriceofthestock.Thetotalamountofcompensationexpenserecognizedreflectsestimatedforfeitureratesandtheinitialassumptionthatperformancegoalswillbeachieved.Compensationexpenseisadjustedbasedonmanagement’sassessmentoftheprobabilitythatperformancegoalswillbeachieved.Ifsuchgoalsarenotmetoritisdeterminedthatachievementofperformancegoalsisnotprobable,previouslyrecognizedcompensationexpenseistruedupinthecurrentperiodtoreflecttheexpectedpayoutlevel.Ifitisdeterminedthattheperformancegoalswillbeexceeded,additionalcompensationexpenseisrecognized,subjecttoacapof150%.

Cashflowsresultingfromtaxdeductionsinexcessofthecumulativecompensationcostrecognizedforstock-basedpaymentarrangements(excesstaxbenefits)areprimarilyclassifiedasfinancingcashinflows.

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NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

EmployeeBenefits

TheCompanyaccountsforitsdefinedbenefitretirementincomeandretirementhealthcareplansusingactuarialmethods.Thesemethodsuseanattributionapproachthatgenerallyspreads“planevents”overtheservicelivesorexpectedlifetime(forfrozenplans)ofplanparticipants.Examplesofplaneventsareplanamendmentsandchangesinactuarialassumptionssuchastheexpectedreturnonplanassets,discountrate,rateofcompensationincreaseandcertainemployee-relatedfactors,suchasretirementageandmortality.Theprincipleunderlyingtheattributionapproachisthatemployeesrenderserviceovertheiremploymentperiodonarelatively“smooth”basisand,therefore,thestatementofearningseffectsofretirementincomeandretirementhealthcareplansarerecognizedinthesamepattern.Oneoftheprincipalassumptionsusedinthenetperiodicbenefitcostcalculationistheexpectedreturnonplanassets.Therequireduseofanexpectedreturnonplanassetsmayresultinrecognizedpensionexpenseorincomethatdiffersfromtheactualreturnsofthoseplanassetsinanygivenyear.Overtime,however,thegoalisfortheexpectedlong-termreturnstoapproximatetheactualreturnsand,therefore,theexpectationisthatthepatternofincomeandexpenserecognitionshouldcloselymatchthepatternoftheservicesprovidedbytheparticipants.TheCompanyusesamarket-relatedvaluemethodforcalculatingplanassetsforpurposesofdeterminingtheamortizationofactuarialgainsandlosses.Thedifferencesbetweenactualandexpectedreturnsarerecognizedinthenetperiodicbenefitcostcalculationovertheaverageremainingserviceperiodorexpectedlifetime(forfrozenplans)oftheplanparticipantsusingthecorridorapproach.Underthisapproach,onlyactuarialgains(losses)thatexceed5%ofthegreateroftheprojectedbenefitobligationorthemarket-relatedvalueofassetsareamortizedtopensionexpensebytheCompany.Indevelopingitsexpectedreturnonplanassets,theCompanyconsidersthelong-termactualreturnsrelativetothemixofinvestmentsthatcompriseitsplanassetsandalsodevelopsestimatesoffutureinvestmentreturnsbyconsideringexternalsources.

TheCompanyrecognizesanactuarial-basedobligationattheonsetofdisabilityforcertainbenefitsprovidedtoindividualsafteremployment,butbeforeretirement,thatincludemedical,dental,vision,lifeandotherbenefits.

EnvironmentalCosts

TheCompanyisinvolvedincertainenvironmentalremediationandongoingcomplianceactivities.Accrualsforenvironmentalmattersarerecordedonasite-by-sitebasiswhenitisprobablethataliabilityhasbeenincurredandbaseduponareasonableestimateoftheliability.TheCompany’saccrualsreflecttheanticipatedparticipationofotherpotentiallyresponsiblepartiesinthoseinstanceswhereitisprobablethatsuchpartiesarelegallyresponsibleandfinanciallycapableofpayingtheirrespectivesharesoftherelevantcosts.Theseaccrualsareadjustedperiodicallyasassessmentandremediationeffortsprogressorasadditionaltechnicalorlegalinformationbecomeavailable.Actualcoststobeincurredatidentifiedsitesinfutureperiodsmayvaryfromtheestimates,giventheinherentuncertaintiesinevaluatingenvironmentalexposures.TheaccrualforenvironmentalmattersisincludedinAccountspayableandaccruedliabilitiesandOtherliabilitiesintheCompany’sconsolidatedbalancesheetsonanundiscountedbasisduetouncertaintyregardingthetimingoffuturepayments.

RevenueRecognition

Salesarerecognizedasrevenuewhentheriskoflossandtitlepasstothecustomerandwhenallofthefollowinghaveoccurred:afirmsalesarrangementexists,pricingisfixedordeterminableandcollectionisreasonablyassured.Salesarerecordednetofallowancesfortradepromotions,coupons,returnsandotherdiscounts.TheCompanyroutinelycommitstoone-timeorongoingtrade-promotionprogramswithcustomersandconsumercouponprogramsthatrequiretheCompanytoestimateandaccruetheexpectedcostsofsuchprograms.Programsincludeshelfpricereductions,end-of-aisleorin-storedisplaysoftheCompany’sproductsandgraphicsandothertrade-promotionactivitiesconductedbythecustomer.Couponsarerecognizedasaliabilitywhendistributedbaseduponexpectedconsumerredemptions.TheCompanymaintainsliabilitiesrelatedtotheseprogramsfortheestimatedexpensesincurred,butnotpaid,attheendofeachperiod.Trade-promotionandcouponredemptioncostsarerecordedasareductionofsales.

TheCompanyprovidesanallowancefordoubtfulaccountsbasedonitshistoricalexperienceandongoingassessmentofitscustomers’creditrisk.Receivableswerepresentednetofanallowancefordoubtfulaccountsof$5and$4asofJune30,2016and2015,respectively.Receivables,net,includednon-customerreceivablesof$9and$12asofJune30,2016and2015,respectively.

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NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

CostofProductsSold

CostofproductssoldrepresentsthecostsdirectlyrelatedtothemanufactureanddistributionoftheCompany’sproductsandprimarilyincludesrawmaterials,packaging,contractmanufacturingfees,shippingandhandling,warehousing,packagedesign,depreciation,amortization,directandindirectlaborandoperatingcostsfortheCompany’smanufacturinganddistributionfacilitiesincludingsalary,benefitcostsandincentivecompensation,androyaltiesandotherchargesrelatedtotheCompany’sGlad®VentureAgreement(seeNote10).

Costsassociatedwithdevelopinganddesigningnewpackagingareexpensedasincurredandincludedesign,artwork,filmsandlabeling.ExpensesforfiscalyearsendedJune30,2016,2015and2014were$11,$11and$12,respectively,allofwhichwerereflectedinCostofproductssoldordiscontinuedoperations,asappropriate,intheconsolidatedstatementsofearnings.

SellingandAdministrativeExpenses

SellingandadministrativeexpensesrepresentcostsincurredbytheCompanyingeneratingrevenuesandmanagingthebusinessandincludemarketresearch,commissionsandcertainadministrativeexpenses.Administrativeexpensesincludesalary,benefits,incentivecompensation,professionalfeesandservices,softwareandlicensingfeesandotheroperatingcostsassociatedwiththeCompany’snon-manufacturing,non-researchanddevelopmentstaff,facilitiesandequipment.

AdvertisingandResearchandDevelopmentCosts

TheCompanyexpensesadvertisingandresearchanddevelopmentcostsintheperiodincurred.

IncomeTaxes

TheCompanyusestheassetandliabilitymethodtoaccountforincometaxes.Deferredtaxassetsandliabilitiesarerecognizedfortheanticipatedfuturetaxconsequencesattributabletodifferencesbetweenfinancialstatementamountsandtheirrespectivetaxbasis.ManagementreviewstheCompany’sdeferredtaxassetstodeterminewhethertheirvaluecanberealizedbaseduponavailableevidence.Avaluationallowanceisestablishedwhenmanagementbelievesthatitismorelikelythannotthatsomeportionofitsdeferredtaxassetswillnotberealized.ChangesinvaluationallowancesfromperiodtoperiodareincludedintheCompany’staxprovisionintheperiodofchange.Inadditiontovaluationallowances,theCompanyprovidesforuncertaintaxpositionswhensuchtaxpositionsdonotmeetcertainrecognitionthresholdsormeasurementstandards.Amountsforuncertaintaxpositionsareadjustedinquarterswhennewinformationbecomesavailableorwhenpositionsareeffectivelysettled.

U.S.incometaxexpenseandforeignwithholdingtaxesareprovidedonunremittedforeignearningsthatarenotindefinitelyreinvestedatthetimetheearningsaregenerated.Whereforeignearningsareindefinitelyreinvested,noprovisionforU.S.incomeorforeignwithholdingtaxesismade.WhencircumstanceschangeandtheCompanydeterminesthatsomeoralloftheundistributedearningswillberemittedintheforeseeablefuture,theCompanyaccruesanexpenseinthecurrentperiodforU.S.incometaxesandforeignwithholdingtaxesattributabletotheanticipatedremittance.

ForeignCurrencyTransactionsandTranslation

LocalcurrenciesarethefunctionalcurrenciesforsubstantiallyalloftheCompany’sforeignoperations.Whenthetransactionalcurrencyisdifferentthanthefunctionalcurrency,transactiongainsandlossesareincludedasacomponentofOther(income)expense,net.Inaddition,certainassetsandliabilitiesdenominatedincurrenciesdifferentthanaforeignsubsidiary’sfunctionalcurrencyarereportedonthesubsidiary’sbooksinitsfunctionalcurrency,withtheimpactfromexchangeratedifferencesrecordedinOther(income)expense,net.AssetsandliabilitiesofforeignoperationsaretranslatedintoU.S.dollarsusingtheexchangeratesineffectatthebalancesheetdate,whileincomeandexpensesaretranslatedattheaveragemonthlyexchangeratesduringtheyear.

35

NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

GainsandlossesonforeigncurrencytranslationsarereportedasacomponentofOthercomprehensiveincome(loss).DeferredtaxesarenotprovidedoncumulativetranslationadjustmentswheretheCompanyexpectsearningsofaforeignsubsidiarytobeindefinitelyreinvested.TheincometaxeffectofcurrencytranslationadjustmentsrelatedtoforeignsubsidiariesandjointventuresforwhichearningsarenotconsideredindefinitelyreinvestedisrecordedasacomponentofdeferredtaxeswithanoffsettoOthercomprehensiveincome(loss).

DerivativeInstruments

TheCompany’suseofderivativeinstruments,principallyswaps,futuresandforwardcontracts,islimitedtonon-tradingpurposesandisdesignedtopartiallymanageexposuretochangesincommodityprices,interestratesandforeigncurrencies.TheCompany’scontractsarehedgesfortransactionswithnotionalamountsandperiodsconsistentwiththerelatedexposuresanddonotconstituteinvestmentsindependentoftheseexposures.

Thechangesinthefairvalue(i.e.,gainsorlosses)ofaderivativeinstrumentarerecordedaseitherassetsorliabilitiesintheconsolidatedbalancesheetswithanoffsettonetearningsorOthercomprehensiveincome(loss)dependingonwhether,foraccountingpurposes,ithasbeendesignatedandqualifiesasanaccountinghedgeand,ifso,onthetypeofhedgingrelationship.Thecriteriausedtodetermineifhedgeaccountingtreatmentisappropriateare:(a)formaldesignationanddocumentationofthehedgingrelationship,theriskmanagementobjectiveandhedgingstrategyathedgeinception;(b)eligibilityofhedgeditems,transactionsandcorrespondinghedginginstrument;and(c)effectivenessofthehedgingrelationshipbothatinceptionofthehedgeandonanongoingbasisinachievingthehedgingobjectives.Forthosederivativeinstrumentsdesignatedandqualifyingashedginginstruments,theCompanymustdesignatethehedginginstrumenteitherasafairvaluehedgeorasacashflowhedge.TheCompanydesignatesitscommodityforwardandfuturecontractsforforecastedpurchasesofrawmaterials,interestrateforwardcontractsforforecastedinterestpayments,andforeigncurrencyforwardcontractsforforecastedpurchasesofinventoryascashflowhedges.DuringthefiscalyearsendedJune30,2016,2015and2014,theCompanyhadnohedginginstrumentsdesignatedasfairvaluehedges.

Forderivativeinstrumentsdesignatedandqualifyingascashflowhedges,theeffectiveportionofgainsorlossesisreportedasacomponentofOthercomprehensiveincome(loss)andreclassifiedintoearningsinthesameperiodorperiodsduringwhichthehedgedtransactionaffectsearnings.Fromtimetotime,theCompanymayhavecontractsnotdesignatedashedgesforaccountingpurposes,forwhichitrecognizeschangesinthefairvalueintheconsolidatedstatementofearningsinthecurrentperiod.Cashflowsfromhedgingactivitiesareclassifiedasoperatingactivitiesintheconsolidatedstatementsofcashflows.

RecentlyIssuedAccountingStandards

InMarch2016,theFinancialAccountingStandardsBoard(FASB)issuedAccountingStandardsUpdate(ASU)No.2016-09,“Compensation-StockCompensation(Topic718):ImprovementstoEmployeeShare-BasedPaymentAccounting,”whichsimplifiesseveralaspectsoftheaccountingforshare-basedpaymenttransactions,includingrequiringexcesstaxbenefitsanddeficienciestoberecognizedasincometaxbenefitorexpenseintheconsolidatedstatementofearningsandexcesstaxbenefitsanddeficienciestobeclassifiedasanoperatingactivityintheconsolidatedstatementofcashflows.ThenewguidanceiseffectivefortheCompanybeginninginthefirstquarteroffiscalyear2018,withearlyadoptionpermitted.TheCompanyisplanningtoadoptthestandardinthefirstquarteroffiscalyear2017.Whiletheactualbenefitrealizedmayvarysignificantlygiventheinherentuncertaintyinpredictingfutureshare-basedtransactions,theCompanycurrentlyestimatesthattheadoptionwillresultinapproximatelya4percentagepointbenefittotheCompany’shistoricaleffectivetaxrateof34%to35%forfiscalyear2017.

InFebruary2016,theFASBissuedASUNo.2016-02,“Leases(Topic842),”whichrequireslesseestorecognizearight-of-useassetandleaseliabilityforallleaseswithtermsofmorethan12months.Recognition,measurementandpresentationwilldependonclassificationasafinanceoroperatinglease.ASU2016-02alsorequiresexpandeddisclosuresaboutleasingarrangements.ThenewguidanceiseffectivefortheCompanybeginninginthefirstquarteroffiscalyear2020,withearlyadoptionpermitted.TheCompanyiscurrentlyevaluatingtheimpactthatadoptionofthisguidancewillhaveonitsconsolidatedfinancialstatements.

InNovember2015,theFASBissuedASUNo.2015-17,“IncomeTaxes(Topic740):BalanceSheetClassificationofDeferredTaxes,”whichrequiresalldeferredtaxliabilitiesandassetstobeclassifiedasnoncurrent.TheCompanyadoptedthestandardinthefourthquarteroffiscalyear2016onaprospectivebasisaspermitted.Priorperiodbalanceshavenotbeenretrospectivelyadjusted.

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NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

InApril2015,theFinancialAccountingStandardsBoard(FASB)issuedAccountingStandardsUpdate(ASU)No.2015-03,“SimplifyingthePresentationofDebtIssuanceCost,”whichrequiresthatdebtissuancecostsrelatedtoarecognizeddebtliabilitybepresentedinthebalancesheetasadirectdeductionfromthecarryingamountofthatdebtliability,consistentwithdebtdiscounts.ThenewguidanceiseffectivefortheCompanybeginninginthefirstquarteroffiscalyear2017,withearlyadoptionpermitted.TheCompanydoesnotexpecttheadoptionofthisguidancewillhaveasignificantimpactonitsconsolidatedfinancialstatements.

InFebruary2015,theFASBissuedASUNo.2015-02,“AmendmentstotheConsolidationAnalysis,”whichchangestheguidanceforevaluatingwhethertoconsolidatecertainlegalentities.Theamendmentsmodifytheevaluationofwhetherlimitedpartnershipsandsimilarlegalentitiesarevariableinterestentities("VIEs")orvotinginterestentities.ThenewguidanceiseffectivefortheCompanybeginninginthefirstquarteroffiscalyear2017,withearlyadoptionpermitted.TheCompanydoesnotexpecttheadoptionofthisguidancewillhaveasignificantimpactonitsconsolidatedfinancialstatements.

InMay2014,theFASBissuedASUNo.2014-09,“RevenuefromContractswithCustomers(Topic606),”whichreplacesmostexistingU.S.GAAPrevenuerecognitionguidanceandisintendedtoimproveandconvergewithinternationalstandardsthefinancialreportingrequirementsforrevenuefromcontractswithcustomers.ThecoreprincipleofASU2014-09isthatanentityshouldrecognizerevenueforthetransferofgoodsorservicesequaltotheamountthatitexpectstobeentitledtoreceiveforthosegoodsorservices.ASU2014-09alsorequiresadditionaldisclosuresaboutthenature,timinganduncertaintyofrevenueandcashflowsarisingfromcontractswithcustomers,includinginformationaboutsignificantjudgmentsandchangesinjudgments.ThenewguidanceiseffectivefortheCompanybeginninginthefirstquarteroffiscalyear2019,withtheoptiontoearlyadoptinthefirstquarteroffiscalyear2018.TheCompanyiscurrentlyevaluatingtheimpactthatadoptionofthisguidancewillhaveonitsconsolidatedfinancialstatements.

NOTE2.DISCONTINUEDOPERATIONS

OnSeptember22,2014,CloroxVenezuelaannouncedthatitwasdiscontinuingitsoperations,effectiveimmediately,andseekingtosellitsassets.Sincefiscalyear2012,CloroxVenezuelawasrequiredtosellmorethantwothirdsofitsproductsatpricesfrozenbytheVenezuelangovernment.Duringthissameperiod,CloroxVenezuelaexperiencedsuccessiveyearsofhyperinflationresultinginsignificantsustainedincreasesinitsinputcosts,includingpackaging,rawmaterials,transportationandwages.Asaresult,CloroxVenezuelahadbeensellingitsproductsataloss,resultinginongoingoperatinglosses.CloroxVenezuelarepeatedlymetwithgovernmentauthoritiesinanefforttohelpthemunderstandtherapidlydecliningstateofthebusiness,includingtheneedforimmediate,significantandongoingpriceincreasesandothercriticalremedialactionstoaddresstheseadverseimpacts.BasedontheVenezuelangovernment’srepresentations,CloroxVenezuelahadexpectedsignificantpriceincreaseswouldbeforthcomingmuchearlier;however,thepriceincreasessubsequentlyapprovedwereinsufficientandwouldhavecausedCloroxVenezuelatocontinueoperatingatasignificantlossintotheforeseeablefuture.Assuch,CloroxVenezuelawasnolongerfinanciallyviableandwasforcedtodiscontinueitsoperations.

OnSeptember26,2014,theCompanyreportedthatVenezuelanVicePresidentJorgeArreazaannounced,withendorsementbyPresidentNicolásMaduro,thattheVenezuelangovernmenthadoccupiedtheSantaLucíaandGuacaraproductionfacilitiesofCloroxVenezuela.OnNovember6,2014,theCompanyreportedthattheVenezuelangovernmenthadpublishedaresolutiongrantingagovernment-sponsoredSpecialAdministrativeBoardfullauthoritytorestartandoperatethebusinessofCloroxVenezuela,therebyreaffirmingthegovernment'sexpropriationofCloroxVenezuela’sassets.Further,PresidentNicolásMaduroannouncedthegovernment'sintentiontofacilitatetheresumedproductionofbleachandothercleaningproductsatCloroxVenezuelaplants.Healsoannouncedhisapprovalofafinancialcredittoinvestinrawmaterialsandproductionattheplants.TheseactionsbytheVenezuelangovernmentweretakenwithouttheconsentorinvolvementofCloroxVenezuela,itsparentCloroxSpainS.L.(CloroxSpain)oranyoftheiraffiliates.CloroxVenezuela,CloroxSpainandtheiraffiliatesreservedtheirrightsunderallapplicablelawsandtreaties.

Withthisexit,thefinancialresultsofCloroxVenezuelaarereflectedasdiscontinuedoperationsintheCompany’sconsolidatedfinancialstatements.TheresultsofCloroxVenezuelahavehistoricallybeenpartoftheInternationalreportablesegment.

NetsalesforCloroxVenezuelawere$0,$11and$77forthefiscalyearsendedJune30,2016,2015and2014,respectively.

37

NOTE2.DISCONTINUEDOPERATIONS(Continued)

Thefollowingtableprovidesasummaryofgains(losses)fromdiscontinuedoperationsforCloroxVenezuelaandgains(losses)fromdiscontinuedoperationsotherthanCloroxVenezuelafortheyearsendedJune30:

2016 2015 2014

OperatinglossesfromCloroxVenezuelabeforeincometaxes $ - $ (6) $ (23)ExitcostsandotherrelatedexpensesforCloroxVenezuela (2) (78) -TotallossesfromCloroxVenezuelabeforeincometaxes (2) (84) (23)IncometaxbenefitattributabletoCloroxVenezuela 2 29 6TotallossesfromCloroxVenezuela,netoftax - (55) (17)Gains(losses)fromdiscontinuedoperationsotherthanCloroxVenezuela,netoftax - 29 (4)Lossesfromdiscontinuedoperations,netoftax $ - $(26) $(21)

UnrelatedtoCloroxVenezuela,inthefiscalyearendedJune30,2015,$32ofgrossunrecognizedtaxbenefitsrelatingtootherdiscontinuedoperationsforperiodspriortofiscalyear2015wererecognizedupontheexpirationoftheapplicablestatuteoflimitations.RecognitionofthesepreviouslydisclosedtaxbenefitshadnoimpactontheCompany’scashfloworearningsfromcontinuingoperationsforthefiscalyearsendedJune30,2015and2014.(SeeNote18)

Summary of Operating Losses, Asset Charges and Other Costs

Thefollowingprovidesabreakdownof(losses)gainsfromdiscontinuedoperationsforCloroxVenezuelaandgainsfromdiscontinuedoperationsotherthanCloroxVenezuelaforthefiscalyearsendedJune30:

2016 2015

OperatinglossesfromCloroxVenezuelabeforeincometaxes $ - $(6)Netassetcharges:Inventories - (11)Property,plantandequipment - (16)Trademarkandotherintangibleassets - (6)Otherassets - (2)Otherexitandbusinessterminationcosts:Severance - (3)Recognitionofdeferredforeigncurrencytranslationloss - (30)Other (2) (10)TotallossesfromCloroxVenezuelabeforeincometaxes (2) (84)IncometaxbenefitattributabletoCloroxVenezuela 2 29TotallossesfromCloroxVenezuela,netoftax - (55)GainsfromdiscontinuedoperationsotherthanCloroxVenezuela,netoftax - 29Lossesfromdiscontinuedoperations,netoftax $ - $(26)

38

NOTE2.DISCONTINUEDOPERATIONS(Continued)

PriortoCloroxVenezuelabeingconsolidatedundertherulesgoverningthepreparationoffinancialstatementsinahighlyinflationaryeconomy,cumulativetranslationgains(losses)wereincludedasacomponentofAccumulatedothercomprehensivenet(losses)income.Thechargeof$30todiscontinuedoperationsinSeptember2014representstherecognitionoftheselossesasaresultofCloroxVenezueladiscontinuingitsoperationseffectiveSeptember22,2014.

Financial Reporting: Hyperinflation and the Selection of Exchange Rates

Duetoasustainedinflationaryenvironment,thefinancialstatementsofCloroxVenezuelaareconsolidatedundertherulesgoverningthepreparationoffinancialstatementsinahighlyinflationaryeconomy.Assuch,CloroxVenezuela’snon-U.S.dollar(non-USD)monetaryassetsandliabilitieswereremeasuredintoU.S.dollars(USD)eachreportingperiodwiththeresultinggainsandlossesnowreflectedindiscontinuedoperations.

SubsequenttoCloroxVenezueladiscontinuingoperationsinSeptember2014,theVenezuelangovernmenthascontinuedtoevolveitscurrencyexchangemechanisms;however,thesechangeshavenothadamaterialimpactontheCompany’sfinancialresultsbecausethebalanceofnetbolivarassetsandliabilitiesonthelocalbooksofCloroxVenezuelawas$0asofbothJune30,2016and2015.AsofJune30,2016and2015,thelocalbooksofCloroxVenezuelacarriedanetassetpositionof$0.Inaddition,asofJune30,2016and2015,theCompanyheld$0and$13,respectively,oftaxassetbalancesrelatedtoCloroxVenezuelainCorporateinthereconciliationoftheresultsoftheCompany’sreportablesegmentstoconsolidatedresults.

NOTE3.BUSINESSESACQUIRED

OnMay2,2016,theCompanyacquired100percentofReNewLifeHoldingsCorporation(RenewLife),aleadingbrandindigestivehealth.Theamountpaidwas$290fundedthroughcommercialpaper.Theamountpaidof$290representstheaggregatepurchasepricelesscashacquired.ThepurchaseoftheRenewLifebusinessreflectstheCompany’sstrategytoacquireleadingbrandswithattractivemarginsingrowthcategories.ResultsforRenewLife’sU.S.businessarereflectedintheHouseholdreportablesegmentandresultsforRenewLife’sinternationalbusinessarereflectedintheInternationalreportablesegment.IncludedintheCompany’sresultsforfiscalyear2016was$21ofRenewLife’sglobalnetsales.

TheassetsandliabilitiesofRenewLifewererecordedattheirrespectiveestimatedfairvaluesasofthedateoftheacquisitionusinggenerallyacceptedaccountingprinciplesforbusinesscombinations.Theexcessofthepurchasepriceoverthefairvalueofthenetidentifiableassetsacquiredhasbeenallocatedtogoodwill.GoodwillrecordedprimarilyreflectsthevalueofexpandingtheCompany’sportfoliofurtherintothehealthandwellnessarena.

39

NOTE3.BUSINESSESACQUIRED(Continued)

ThefollowingtablesummarizestheestimatedfairvaluesofRenewLife’sassetsacquiredandliabilitiesassumedandrelateddeferredincometaxesasoftheacquisitiondate.Duetothetimingoftheacquisition,thefairvalueoftheassetsacquiredandliabilitiesassumedarebasedonapreliminaryvaluationandtheCompany’sestimatesandassumptionsaresubjecttochangewithinthemeasurementperiod.Theprimaryareasofthepurchasepricethatarenotyetfinalizedarerelatedtogoodwillandincometaxes.Theweighted-averageestimatedusefullifeofintangibleassetssubjecttoamortizationis15years.

2016

RenewLife

Goodwill $ 137Trademarks 134Customerrelationships 36Property,plantandequipment 3Workingcapital,net 41Deferredincometaxes (61)PurchasePrice $290

Proformaresultsreflectingtheacquisitionwerenotpresentedbecausetheacquisitiondidnotmeetthethresholdrequirementsforadditionaldisclosure.

NOTE4.INVENTORIES

InventoriesconsistedofthefollowingasofJune30:

2016 2015

Finishedgoods $ 361 $ 316Rawmaterialsandpackaging 111 101Workinprocess 3 3LIFOallowances (32) (35)Total $443 $385

Thelast-in,first-out(LIFO)methodwasusedtovalueapproximately38%ofinventoriesasofJune30,2016and2015,respectively.Thecarryingvaluesforallotherinventoriesaredeterminedonthefirst-in,first-out(FIFO)method.TheeffectonearningsoftheliquidationofLIFOlayerswasabenefitof$0,$0and$2forthefiscalyearsendedJune30,2016,2015and2014,respectively.

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NOTE5.OTHERCURRENTASSETS

OthercurrentassetsconsistedofthefollowingasofJune30:

2016 2015

Deferredtaxassets(a) $ - $ 99Prepaidexpenses 70 39Other 2 5Total $72 $143

(a)TheCompanyprospectivelyadoptedASUNo.2015-17,"IncomeTaxes(Topic740):BalanceSheetClassificationofDeferredTaxes,"requiringalldeferredtaxassetsandliabilitiestobeclassifiedasnoncurrent.SeeNote1and18forfurtherdetails.

NOTE6.PROPERTY,PLANTANDEQUIPMENT,NET

Thecomponentsofproperty,plantandequipment,net,consistedofthefollowingasofJune30:

2016 2015

Machineryandequipment $ 1,607 $ 1,608Buildings 524 515Capitalizedsoftwarecosts 368 371Landandimprovements 118 122Constructioninprogress 112 65Computerequipment 88 76

2,817 2,757Less:Accumulateddepreciationandamortization (1,911) (1,839)Total $ 906 $ 918

IncludedinMachineryandequipmentaboveare$12ofcapitalleasesasofJune30,2016and2015,respectively.Accumulateddepreciationforassetsundercapitalleaseswas$3and$2asofJune30,2016and2015,respectively.

IncludedinLandandimprovementsaboveare$3and$2ofassetretirementobligationsasofJune30,2016and2015,respectively,fortwoleasedproperties.Theliabilityof$1and$2incurredinfiscalyear2016and2015,respectively,wasrecordedinOtherliabilities.

Depreciationandamortizationexpenserelatedtoproperty,plantandequipment,net,was$157,$157and$161infiscalyears2016,2015and2014,respectively,whichincludesdepreciationofassetsundercapitalleases.Thisalsoincludesamortizationofcapitalizedsoftwareof$16,$19and$22infiscalyears2016,2015and2014,respectively.

Non-cashcapitalexpenditureswere$10,$18and$0infiscalyears2016,2015and2014,respectively.

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NOTE7.GOODWILL,TRADEMARKSANDOTHERINTANGIBLEASSETS

ThechangesinthecarryingamountofgoodwillbyreportablesegmentforthefiscalyearsendedJune30,2016and2015wereasfollows:

Goodwill

Cleaning Lifestyle Household International Total

BalanceJune30,2014 $ 323 $ 244 $ 85 $ 449 $ 1,101Effectofforeigncurrencytranslation - - - (34) (34)BalanceJune30,2015 323 244 85 415 1,067Acquisition - - 122 15 137Effectofforeigncurrencytranslation - - - (7) (7)BalanceJune30,2016 $323 $244 $ 207 $423 $1,197

ThechangesinthecarryingamountoftrademarksandotherintangibleassetsforthefiscalyearsendedJune30wereasfollows:

AsofJune30,2016 AsofJune30,2015

Gross

carryingamount

Accumulatedamortization

Netcarryingamount

Grosscarryingamount

Accumulatedamortization

Netcarryingamount

Trademarksnotsubjecttoamortization $ 647 $ - $ 647 $ 524 $ - $ 524Trademarkssubjecttoamortization 32 22 10 33 22 11Otherintangibleassets:Technologyandproductformulae 137 134 3 137 133 4Other 221 146 75 188 142 46Total $ 1,037 $ 302 $ 735 $ 882 $ 297 $ 585

Finite-livedintangibleassetsareamortizedovertheirestimatedusefullives,generallyrangingfrom2to30years.AmortizationexpenserelatingtotheCompany’sintangibleassetswas$8,$12and$15fortheyearsendedJune30,2016,2015and2014,respectively.Estimatedamortizationexpensefortheseintangibleassetsis$10,$9,$9,$9and$8forfiscalyears2017,2018,2019,2020and2021,respectively.

Duringfiscalyear2016,theCompanyrecognized$9ofintangibleassetimpairmentcharges,ofwhich$6relatedtotheAplicare®trademarkwithintheCleaningsegment.TheAplicare®trademarkimpairmentwasrecognizedbasedontheanticipatedimpactonfutureresultsfromacompetitivemarketentrant.

NOTE8.ACCOUNTSPAYABLEANDACCRUEDLIABILITIES

AccountspayableandaccruedliabilitiesconsistedofthefollowingasofJune30:

2016 2015

Accountspayable $ 490 $ 431Compensationandemployeebenefitcosts 192 189Tradeandsalespromotion 127 115Dividends 108 103Other 118 141Total(a) $1,035 $979

(a)AccountspayableandaccruedliabilitieswerecombinedintoonefinancialstatementlineasofJune30,2016.Thechangehasbeenretrospectivelyappliedtoallperiodspresented.

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NOTE9.DEBT

Notesandloanspayable,whichmatureinlessthanoneyear,includedthefollowingasofJune30:

2016 2015

Commercialpaper $ 522 $ 93Foreignborrowings 1 2Total $523 $95

TheweightedaverageinterestratesincurredonaverageoutstandingnotesandloanspayableduringthefiscalyearsendedJune30,2016,2015and2014,includingfeesassociatedwiththeCompany’sundrawnrevolvingcreditfacility,were1.10%,2.05%and0.97%,respectively.TheweightedaverageeffectiveinterestratesoncommercialpaperbalancesasofJune30,2016and2015were0.82%and0.39%,respectively.

Long-termdebt,carriedatfacevaluenetofunamortizeddiscountsorpremiums,includedthefollowingasofJune30:

2016 2015

Seniorunsecurednotesanddebentures:3.55%,$300dueNovember2015 - 3005.95%,$400dueOctober2017 400 3993.80%,$300dueNovember2021 298 2983.05%,$600dueSeptember2022 599 5993.50%,$500dueDecember2024 500 500Total 1,797 2,096Less:Currentmaturitiesoflong-termdebt - (300)Long-termdebt $1,797 $1,796

Theweightedaverageinterestratesincurredonaverageoutstandinglong-termdebtduringthefiscalyearsendedJune30,2016,2015and2014,were4.37%,4.44%and4.56%,respectively.Theweightedaverageeffectiveinterestratesonlong-termdebtbalancesasofJune30,2016and2015,were4.41%and4.31%,respectively.

Long-termdebtmaturitiesasofJune30,2016,are$0,$400,$0,$0,$0and$1,400infiscalyears2017,2018,2019,2020,2021andthereafter,respectively.

InNovember2015,$300oftheCompany’sseniornoteswithanannualfixedinterestrateof3.55%becamedueandwererepaidusingcommercialpaperborrowingsandcashonhand.

43

NOTE9.DEBT(continued)

InDecember2014,underashelfregistrationstatementfiledwiththeSECthatwillexpireinDecember2017,theCompanyissued$500ofseniornoteswithanannualfixedinterestrateof3.50%.Interestonthenotesispayablesemi-annuallyinJuneandDecemberandthenoteshaveamaturitydateofDecember15,2024.Thenotescarryaneffectiveinterestrateof4.10%,whichincludestheimpactfromthesettlementofinterestrateforwardcontractsinDecember2014(seeNote11).ThenotesrankequallywithalloftheCompany’sexistingseniorindebtedness.InJanuary2015,$575oftheCompany’sseniornoteswithanannualfixedinterestrateof5.00%becamedueandwererepaidusingthenetproceedsfromtheDecember2014debtissuanceandcommercialpaperborrowings.

TheCompany’sborrowingcapacityunderotherfinancingarrangementsasofJune30wasasfollows:

2016 2015

Revolvingcreditfacility $ 1,100 $ 1,100Foreigncreditlines 10 11Othercreditlines 18 18Total $1,128 $1,129

AsofJune30,2016,theCompanyhada$1,100revolvingcreditagreement(theCreditAgreement),whichexpiresinOctober2019.TherewerenoborrowingsundertheCreditAgreementasofJune30,2016or2015.Theagreementincludescertainrestrictivecovenantsandlimitations,withwhichtheCompanywasincomplianceasofJune30,2016.

Ofthe$28offoreignandothercreditlinesasofJune30,2016,$5wasoutstandingandtheremainderof$23wasavailableforborrowing.Ofthe$29offoreignandothercreditlinesasofJune30,2015,$4wasoutstandingandtheremainderof$25wasavailableforborrowing.

NOTE10.OTHERLIABILITIES

OtherliabilitiesconsistedofthefollowingasofJune30:

2016 2015

Employeebenefitobligations $ 335 $ 299Ventureagreementterminalobligation,net 302 294Taxes 40 38Other 107 119Total $784 $750

VentureAgreement

TheCompanyhasanagreementwithTheProcter&GambleCompany(P&G)fortheCompany’sGlad®bags,wrapsandcontainersbusiness.AsofJune30,2016and2015,P&Ghada20%interestintheventure.TheCompanypaysaroyaltytoP&Gforitsinterestintheprofits,lossesandcashflows,ascontractuallydefined,oftheGlad®business,whichisincludedinCostofproductssold.TheagreementwithP&GwillexpireinJanuary2023unlessthepartiesdecide,onorpriortoJanuary2018,toextendthetermoftheagreementforanother10years.Theagreementcanbeterminatedundercertaincircumstances,includingatP&G’soptionuponachangeincontroloftheCompanyor,ateitherparty’soption,uponthesaleoftheGlad®businessbytheCompany.

Uponterminationoftheagreement,theCompanyisrequiredtopurchaseP&G’sinterestforcashatfairvalueasestablishedbypredeterminedvaluationprocedures.AsofJune30,2016,theestimatedfairvalueofP&G’sinterestwas$448,ofwhich$302hasbeenrecognizedandisreflectedinOtherliabilitiesasnotedinthetableabove.Thedifferencebetweentheestimatedfairvalueandtheamountrecognized,andanyfuturechangesinthefairvalueofP&G’sinterest,ischargedtoCostofproductssoldonastraight-linebasisovertheremaininglifeoftheagreement.Followingtermination,theGlad®businesswillretaintheexclusivecoreintellectualpropertylicensescontributedbyP&Gonaroyalty-freebasisforthelicensedproductsmarketed.

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NOTE10.OTHERLIABILITIES(continued)

DeferredGainonSale-leasebackTransaction

InDecember2012,theCompanycompletedasale-leasebacktransactionunderwhichitsolditsgeneralofficebuildinginOakland,CAtoanunrelatedthirdpartyfornetproceedsof$108andenteredintoa15-yearoperatingleaseagreementwithrenewaloptionswiththebuyerforaportionofthebuilding.TheCompanydeferredrecognitionoftheportionofthetotalgainonthesalethatwasequivalenttothepresentvalueoftheleasepaymentsandwillcontinuetoamortizesuchamounttoearningsratablyovertheleaseterm.AsofJune30,2016and2015,thelong-termportionofthedeferredgainof$36and$40,respectively,wasincludedinOtherinthetableabove.

NOTE11.FINANCIALINSTRUMENTSANDFAIRVALUEMEASUREMENTS

Financialassetsandliabilitiesmeasuredatfairvalueonarecurringbasisintheconsolidatedbalancesheetsarerequiredtobeclassifiedanddisclosedinoneofthefollowingthreecategoriesofthefairvaluehierarchy:

Level1:Quotedmarketpricesinactivemarketsforidenticalassetsorliabilities.Level2:Observablemarket-basedinputsorunobservableinputsthatarecorroboratedbymarketdata.Level3:Unobservableinputsreflectingthereportingentity’sownassumptions.

AsofJune30,2016and2015,theCompany’sfinancialassetsandliabilitiesthatweremeasuredatfairvalueonarecurringbasisduringtheperiodincludedderivativefinancialinstruments,whichwereclassifiedaseitherLevel1orLevel2,andtrustassetstofundcertainoftheCompany’snonqualifieddeferredcompensationplans,whichwereclassifiedasLevel1.

FinancialRiskManagementandDerivativeInstruments

TheCompanyisexposedtocertaincommodity,foreigncurrencyandinterestraterisksrelatedtoitsongoingbusinessoperationsandusesderivativeinstrumentstomitigateitsexposuretotheserisks.

Commodity Price Risk Management

TheCompanymayusecommodityexchangetradedfuturesandover-the-counterswapcontracts,whicharegenerallynolongerthan2years,tofixthepriceofaportionofitsforecastedrawmaterialrequirements.Commoditypurchasecontractsaremeasuredatfairvalueusingmarketquotationsobtainedfromcommodityderivativedealers.

AsofJune30,2016,thenotionalamountofcommodityderivativeswas$30,ofwhich$16relatedtojetfuelswapsand$14relatedtosoybeanoilfutures.AsofJune30,2015,thenotionalamountofcommodityderivativeswas$47,ofwhich$27relatedtojetfuelswapsand$20relatedtosoybeanoilfutures.

Foreign Currency Risk Management

TheCompanymayalsoenterintocertainover-the-counterderivativecontractstomanageaportionoftheCompany’sforecastedforeigncurrencyexposureassociatedwiththepurchaseofinventory.Theseforeigncurrencycontractsgenerallyhavedurationsofnolongerthan2years.Theforeignexchangecontractsaremeasuredatfairvalueusinginformationquotedbyforeignexchangedealers.

ThenotionalamountsofoutstandingforeigncurrencyforwardcontractsusedbytheCompany’ssubsidiariestohedgeforecastedpurchasesofinventorywere$84and$105,respectively,asofJune30,2016and2015.

Interest Rate Risk Management

TheCompanymayenterintoover-the-counterinterestrateforwardcontractstofixaportionofthebenchmarkinterestratepriortotheanticipatedissuanceoffixedratedebtortomanagetheCompany’sleveloffixedandfloatingratedebt.TheinterestratecontractsaremeasuredatfairvalueusinginformationquotedbyU.S.governmentbonddealers.

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NOTE11.FINANCIALINSTRUMENTSANDFAIRVALUEMEASUREMENTS(Continued)

Duringfiscalyear2015,theCompanypaid$25tosettleinterestrateforwardcontractsrelatedtotheDecember2014issuanceof$500inseniornotes.ThesettlementpaymentsarereflectedasoperatingcashflowsintheconsolidatedstatementsofcashflowsforthefiscalyearendedJune30,2015.ThelossisreflectedinAccumulatedothercomprehensivenetlossontheconsolidatedbalancesheetsasofJune30,2016and2015,andisbeingamortizedintoInterestexpenseontheconsolidatedstatementsofearningsoverthe10-yeartermofthenotes.

TheCompanyhadnooutstandinginterestrateforwardcontractsasofJune30,2016and2015.

Counterparty Risk Management and Derivative Contract Requirements

TheCompanyutilizesavarietyoffinancialinstitutionsascounterpartiesforover-thecounterderivativeinstruments.TheCompanyentersintoagreementsgoverningtheuseofover-the-counterderivativeinstrumentsandsetsinternallimitsontheaggregateover-the-counterderivativeinstrumentpositionsheldwitheachcounterparty.CertaintermsoftheseagreementsrequiretheCompanyorthecounterpartytopostcollateralwhenthefairvalueofthederivativeinstrumentsexceedscontractuallydefinedcounterpartyliabilitypositionlimits.Ofthederivativeinstrumentsof$5and$8reflectedinAccountspayableandaccruedliabilitiesandOtherliabilitiesasofJune30,2016and2015,respectively,$4and$8,respectively,containedsuchterms.AsofbothJune30,2016and2015,neithertheCompanynoranycounterpartywasrequiredtopostanycollateralasnocounterpartyliabilitypositionlimitswereexceeded.

CertaintermsoftheagreementsgoverningtheCompany’sover-the-counterderivativeinstrumentsrequirethecreditratings,asassignedbyStandard&Poor’sandMoody’stotheCompanyanditscounterparties,toremainatalevelequaltoorbetterthantheminimumofaninvestmentgradecreditrating.IftheCompany’screditratingsweretofallbelowinvestmentgrade,thecounterpartiestothederivativeinstrumentscouldrequestfullcollateralizationonderivativeinstrumentsinnetliabilitypositions.AsofbothJune30,2016and2015,theCompanyandeachofitscounterpartieshadbeenassignedinvestmentgraderatingsbybothStandard&Poor’sandMoody’s.

CertainoftheCompany’sexchange-tradedfuturescontractsusedforcommoditypriceriskmanagementincluderequirementsfortheCompanytopostcollateralintheformofacashmarginaccountheldbytheCompany’sbrokerfortradesconductedonthatexchange.AsofJune30,2016and2015,theCompanymaintainedcashmarginbalancesrelatedtoexchange-tradedfuturescontractsof$1and$2,respectively,whichareclassifiedasOthercurrentassetsontheconsolidatedbalancesheets.

Trust Assets

TheCompanyhasheldinterestsinmutualfundsandcashequivalentsaspartoftrustassetsrelatedtocertainofitsnonqualifieddeferredcompensationplans.Theparticipants,whoaretheCompany’scurrentandformeremployees,inthedeferredcompensationplansmayselectamongcertainmutualfundsinwhichtheircompensationdeferralsareinvestedinaccordancewiththetermsoftheplanandwithintheconfinesofthetrustswhichholdthemarketablesecurities.ThetrustsrepresentvariableinterestentitiesforwhichtheCompanyisconsideredtheprimarybeneficiary,andtherefore,trustassetsareconsolidatedandincludedinOtherassetsintheconsolidatedbalancesheets.Theinterestsinmutualfundsaremeasuredatfairvalueusingquotedmarketprices.TheCompanyhasdesignatedthesemarketablesecuritiesastradinginvestments.

ThevalueofthetrustassetsrelatedtocertainoftheCompany’snonqualifieddeferredcompensationplansincreasedby$14ascomparedtoJune30,2015,primarilyduetocurrentyearemployees’contributionstotheseplans.

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NOTE11.FINANCIALINSTRUMENTSANDFAIRVALUEMEASUREMENTS(Continued)

FairValueofFinancialInstruments

ThefollowingtablesummarizesthefairvalueofCompany’sassetsandliabilitiesforwhichdisclosureoffairvalueisrequiredasofJune30:

2016 2015

Assets Balancesheetclassification

Fairvaluehierarchy

levelCarryingAmount

EstimatedFairValue

CarryingAmount

EstimatedFairValue

Investmentsincludingmoneymarketfunds Cashandcashequivalents(a) 1 $ 234$ 234$ 212$ 212

Timedeposits Cashandcashequivalents(a) 2 79 79 84 84Commoditypurchasederivativecontracts Othercurrentassets 1 1 1 - -Foreignexchangederivativecontracts Othercurrentassets 2 1 1 1 1Commoditypurchasederivativecontracts Otherassets 2 1 1 - -Trustassetsfornonqualifieddeferredcompensationplans Otherassets 1 52 52 38 38

$ 368 $ 368 $ 335 $ 335Liabilities

Notesandloanspayable Notesandloanspayable(b) 2 $ 523 $ 523 $ 95 $ 95

CommoditypurchasederivativecontractsAccountspayableandaccruedliabilities 2 1 1 8 8

ForeignexchangederivativecontractsAccountspayableandaccruedliabilities 2 4 4 - -

Currentmaturitiesoflong-termdebtandLong-termdebt

Currentmaturitiesoflong-termdebtandLong-term

debt(c) 2 1,797 1,922 2,096 2,137 $ 2,325 $ 2,450 $ 2,199 $ 2,240

(a)Cashandcashequivalentsarecomposedoftimedepositsandotherinterestbearinginvestmentsincludingmoneymarketfundswithoriginalmaturitydatesof90daysorless.Cashandcashequivalentsarerecordedatcost,whichapproximatesfairvalue.

(b) NotesandloanpayableiscomposedofU.S.commercialpaperand/orothersimilarshort-termdebtsissuedbynon-U.S.subsidiaries,allofwhicharerecordedatcost,whichapproximatesfairvalue.(c) Currentmaturitiesoflong-termdebtandLong-termdebtarerecordedatcost.ThefairvalueofLong-termdebt,includingcurrentmaturities,wasdeterminedusingsecondarymarketpricesquotedby

corporatebonddealers,andisclassifiedasLevel2.

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NOTE11.FINANCIALINSTRUMENTSANDFAIRVALUEMEASUREMENTS(Continued)

Derivatives

TheCompanydesignatesitscommodityforwardandfuturecontractsforforecastedpurchasesofrawmaterials,interestrateforwardcontractsforforecastedinterestpayments,andforeigncurrencyforwardcontractsforforecastedpurchasesofinventoryascashflowhedges.

TheeffectsofderivativeinstrumentsdesignatedashedginginstrumentsonOthercomprehensiveincome(loss)andnetearningswereasfollowsduringthefiscalyearsendedJune30:

Gains(losses)recognizedinothercomprehensivenetloss

2016 2015 2014

Commoditypurchasederivativecontracts $ (4) $ (13) $ 2Interestratederivativecontracts - (12) (13)Foreignexchangederivativecontracts (3) 7 (3)Total $(7) $(18) $(14)

Gains(losses)reclassifiedfromaccumulatedothercomprehensivenetlossandrecognized

innetearnings

2016 2015 2014

Commoditypurchasederivativecontracts $ (13) $ (5) $ -Interestratederivativecontracts (6) (5) (4)Foreignexchangederivativecontracts 1 3 4Total $ (18) $ (7) $ -

Thegains(losses)reclassifiedfromAccumulatedothercomprehensivenet(losses)incomeandrecognizedinearningsduringthefiscalyearsendedJune30,2016,2015and2014,forcommoditypurchaseandforeignexchangecontractswereincludedinCostofproductssold,andforinterestratecontractswereincludedinInterestexpense.

Theestimatedamountoftheexistingnetgain(loss)inAccumulatedothercomprehensivenet(losses)incomeasofJune30,2016,whichisexpectedtobereclassifiedintoearningswithinthenexttwelvemonths,is$(11).Gainsandlossesonderivativeinstrumentsrepresentingeitherhedgeineffectivenessorhedgecomponentsexcludedfromtheassessmentofeffectivenessarerecognizedintheconsolidatedstatementofearnings.DuringeachofthefiscalyearsendedJune30,2016,2015and2014,hedgeineffectivenesswasnotsignificant.

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NOTE12.OTHERCONTINGENCIESANDGUARANTEES

Contingencies

TheCompanyisinvolvedincertainenvironmentalmatters,includingresponseactionsatvariouslocations.TheCompanyhadarecordedliabilityof$14and$12asofJune30,2016and2015,respectively,foritsshareofaggregatefutureremediationcostsrelatedtothesematters.OnematterinDickinsonCounty,Michigan,forwhichtheCompanyisjointlyandseverallyliable,accountedforasubstantialmajorityoftherecordedliabilityasofbothJune30,2016and2015.TheCompanyhasagreedtobeliablefor24.3%oftheaggregateremediationandassociatedcostsforthismatterpursuanttoacost-sharingarrangementwithathirdparty.Withtheassistanceofenvironmentalconsultants,theCompanymaintainsanundiscountedliabilityrepresentingitscurrentbestestimateofitsshareofthecapitalexpenditures,maintenanceandothercoststhatmaybeincurredoveranestimated30-yearremediationperiod.Currently,theCompanycannotaccuratelypredictthetimingoffuturepaymentsthatmaybemadeunderthisobligation.Inaddition,theCompany’sestimatedlossexposureissensitivetoavarietyofuncertainfactors,includingtheefficacyofremediationefforts,changesinremediationrequirementsandthefutureavailabilityofalternativeclean-uptechnologies.AlthoughitisreasonablypossiblethattheCompany’sexposuremayexceedtheamountrecorded,anyamountofsuchadditionalexposures,orrangeofexposures,isnotestimableatthistime.

TheCompanyissubjecttovariouslegalproceedings,claimsandotherlosscontingencies,including,withoutlimitation,losscontingenciesrelatingtocontractualarrangements,productliability,patentsandtrademarks,advertising,laborandemployment,environmental,healthandsafetyandothermatters.Withrespecttotheseproceedings,claimsandotherlosscontingencies,whileconsiderableuncertaintyexists,intheopinionofmanagementatthistime,theultimatedispositionofthesematters,totheextentnotpreviouslyprovidedfor,willnothaveamaterialadverseeffect,eitherindividuallyorintheaggregate,ontheCompany’sconsolidatedfinancialstatementstakenasawhole.

Guarantees

Inconjunctionwithdivestituresandothertransactions,theCompanymayprovidetypicalindemnifications(e.g.,indemnificationsforrepresentationsandwarrantiesandretentionofpreviouslyexistingenvironmental,taxandemployeeliabilities)thathavetermsthatvaryindurationandinthepotentialamountofthetotalobligationand,inmanycircumstances,arenotexplicitlydefined.TheCompanyhasnotmade,nordoesitbelievethatitisprobablethatitwillmake,anymaterialpaymentsrelatingtoitsindemnifications,andbelievesthatanyreasonablypossiblepaymentswouldnothaveamaterialadverseeffect,eitherindividuallyorintheaggregate,ontheCompany’sconsolidatedfinancialstatementstakenasawhole.

TheCompanyhadnotrecordedanyliabilitiesontheaforementionedindemnificationsasofJune30,2016and2015.

TheCompanywasapartytolettersofcreditof$10and$11asofJune30,2016and2015,respectively,primarilyrelatedtooneofitsinsurancecarriers,ofwhich$0hadbeendrawnupon.

NOTE13.LEASESANDOTHERCOMMITMENTS

TheCompanyleasesvariousproperty,plant,andequipmentincludingoffice,warehousing,andmanufacturingfacilities,inadditiontocertainmanufacturingandinformationtechnologyequipment.TheCompanyexpectsthat,inthenormalcourseofbusiness,existingcontractswillberenewedorreplacedbyotherleases.Rentalexpenseforalloperatingleaseswas$77,$76and$71infiscalyears2016,2015and2014,respectively.

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NOTE13.LEASESANDOTHERCOMMITMENTS(Continued)

ThefutureminimumannualleasecommitmentsrequiredundertheCompany’sexistingnon-cancelableoperatingandcapitalleaseagreementsasofJune30,2016,wereasfollows:

Year Operatingleases Capitalleases

2017 $ 49 $ 32018 45 22019 38 12020 32 -2021 29 -Thereafter 135 -Total $328 $6

TheCompanyisalsoapartytocertainpurchaseobligations,whicharedefinedaspurchaseagreementsthatareenforceableandlegallybindingandthatcontainspecifiedordeterminablesignificantterms,includingquantity,priceandtheapproximatetimingofthetransaction.ExamplesoftheCompany’spurchaseobligationsincludecontractstopurchaserawmaterials,commitmentstocontractmanufacturers,commitmentsforinformationtechnologyandrelatedservices,advertisingcontracts,capitalexpenditureagreements,softwareacquisitionandlicensecommitmentsandservicecontracts.TheCompanyentersintopurchaseobligationsbasedonexpectationsoffuturebusinessneeds.Forpurchaseobligationssubjecttovariablepriceand/orquantityprovisions,anestimateofthepriceand/orquantityhasbeenmade.ManyofthesepurchaseobligationsareshortterminnatureandareflexibletoallowforchangesintheCompany’sbusinessandrelatedrequirements.AsofJune30,2016,theCompany’spurchaseobligationswereasfollows:

Year PurchaseObligations

2017 $ 1502018 542019 372020 122021 2Thereafter 1Total $ 256

NOTE14.STOCKHOLDERS’EQUITY

TheCompanyhastwosharerepurchaseprograms:anopen-marketpurchaseprogramwithanauthorizedaggregatepurchaseamountofupto$750,allofwhichwasavailableforsharerepurchasesasofbothJune30,2016and2015,andaprogramtooffsettheanticipatedimpactofsharedilutionrelatedtoshare-basedawards(theEvergreenProgram),whichhasnoauthorizationlimitastoamountortimingofrepurchases.

SharerepurchasesunderauthorizedprogramswereasfollowsduringthefiscalyearsendedJune30:

2016 2015 2014

AmountShares(in000's) Amount

Shares(in000's) Amount

Shares(in000's)

Open-marketpurchaseprograms $ - -$ - -$ - -EvergreenProgram 254 2,151 434 4,016 260 3,046Total $ 254 2,151 $ 434 4,016 $ 260 3,046

50

NOTE14.STOCKHOLDERS’EQUITY(Continued)

Dividendspersharedeclaredandpaid,respectively,duringthefiscalyearsendedJune30wereasfollows:

2016 2015 2014

Dividendspersharedeclared $3.11 $2.99 $2.87Dividendspersharepaid 3.08 2.96 2.84

AccumulatedOtherComprehensiveNet(Losses)Income

ChangesinAccumulatedothercomprehensivenet(losses)incomebycomponentwereasfollowsforthefiscalyearsendedJune30:

Foreigncurrencyadjustments

Netunrealizedgains

(losses)onderivatives

Pensionandpostretirement

benefitadjustments

AccumulatedOther

ComprehensiveIncome

BalanceJune30,2013 $ (209) $ (30) $ (128) $ (367)Othercomprehensive(loss)incomebeforereclassifications (26) (15) (16) (57)Amountsreclassifiedfromaccumulatedothercomprehensivenetlosses - - 8 8Incometaxbenefit(expense) (11) 6 4 (1)Netcurrentperiodothercomprehensiveincome(loss) (37) (9) (4) (50)BalanceJune30,2014 (246) (39) (132) (417)Othercomprehensive(loss)incomebeforereclassifications (92) (18) (29) (139)Amountsreclassifiedfromaccumulatedothercomprehensivenetlosses - 7 - 7Recognitionofdeferredforeigncurrencytranslationloss 30 - - 30Incometaxbenefit(expense) 8 (3) 12 17Netcurrentperiodothercomprehensiveincome(loss) (54) (14) (17) (85)BalanceJune30,2015 (300) (53) (149) (502)Othercomprehensive(loss)incomebeforereclassifications (43) (7) (38) (88)Amountsreclassifiedfromaccumulatedothercomprehensivenetlosses - 18 - 18Incometaxbenefit(expense) (10) (2) 14 2Netcurrentperiodothercomprehensiveincome(loss) (53) 9 (24) (68)BalanceJune30,2016 $ (353) $ (44) $ (173) $ (570)

Includedinforeigncurrencyadjustmentsarere-measurementlossesonlong-termintercompanyloanswheresettlementisnotplannedoranticipatedintheforeseeablefuture.ForthefiscalyearsendedJune30,2016,2015and2014,Othercomprehensivelossesontheseloanstotaled$14,$9and$12,respectively,andtherewerenoamountsreclassifiedfromAccumulatedothercomprehensivenet(losses)income.

PensionandpostretirementbenefitreclassificationadjustmentsarereflectedinCostofproductssold,SellingandadministrativeexpensesandResearchanddevelopmentcosts.

51

NOTE15.NETEARNINGSPERSHARE(EPS)

Thefollowingisthereconciliationoftheweightedaveragenumberofsharesoutstanding(inthousands)usedtocalculatebasicnetEPStothoseusedtocalculatedilutednetEPSforthefiscalyearsendedJune30:

2016 2015 2014

Basic 129,472 130,310 129,558Dilutiveeffectofstockoptionsandother 2,245 2,466 2,184Diluted 131,717 132,776 131,742Antidilutivestockoptionsandother 42 23 -

NOTE16.STOCK-BASEDCOMPENSATIONPLANS

InNovember2012,theCompany’sstockholdersvotedtoapprovetheamendedandrestated2005StockIncentivePlan(thePlan).ThePlanpermitstheCompanytograntvariousnonqualifiedstock-basedcompensationawards,includingstockoptions,restrictedstock,performanceunits,deferredstockunits,stockappreciationrightsandotherstock-basedawards.TheprimaryamendmentreflectedinthePlanwasanincreaseofapproximately3millioncommonsharesthatmaybeissuedforstock-basedcompensationpurposes.AsofJune30,2016,theCompanyisauthorizedtograntuptoapproximately8millioncommonsharesunderthePlan,and,asofJune30,2016,approximately8millioncommonshareswereavailableforgrant.

Compensationcostandtherelatedincometaxbenefitrecognizedforstock-basedcompensationplanswereclassifiedasindicatedbelowforthefiscalyearsendedJune30:

2016 2015 2014

Costofproductssold $ 6 $ 4 $ 4Sellingandadministrativeexpenses 35 25 29Researchanddevelopmentcosts 4 3 3Totalcompensationcost $ 45 $ 32 $ 36Relatedincometaxbenefit $ 17 $ 12 $ 13

Cashreceivedduringfiscalyears2016,2015and2014fromstockoptionsexercisedunderallstock-basedpaymentarrangementswas$180,$230and$86,respectively.TheCompanyissuessharesforstock-basedcompensationplansfromtreasurystock.TheCompanymayrepurchasesharesunderitsEvergreenProgramtooffsettheestimatedimpactofsharedilutionrelatedtostock-basedawards(seeNote14).

Detailsregardingthevaluationandaccountingforstockoptions,restrictedstockawards,performanceunitsanddeferredstockunitsfornon-employeedirectorsfollow.

StockOptions

Thefairvalueofeachstockoptionawardgrantedduringfiscalyears2016,2015and2014wasestimatedonthedateofgrantusingtheBlack-Scholesvaluationmodelandassumptionsnotedinthefollowingtable:

2016 2015 2014

Expectedlife 5.6years 5.6to5.8years 5.7yearsWeighted-averageexpectedlife 5.6years 5.7years 5.7yearsExpectedvolatility 16.43%to17.3% 16.3%to18.6% 18.4%to18.5%Weighted-averagevolatility 17.2% 16.6% 18.5%Risk-freeinterestrate 1.3%to1.7% 1.4%to2.0% 1.8%to1.9%Weighted-averagerisk-freeinterestrate 1.7% 1.9% 1.8%Dividendyield 2.5%to2.8% 2.8%to3.4% 3.4%Weighted-averagedividendyield 2.8% 3.3% 3.4%

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NOTE16.STOCK-BASEDCOMPENSATIONPLANS(Continued)

Theexpectedlifeofthestockoptionsisbasedonobservedhistoricalexercisepatterns.TheexpectedvolatilityisbasedonimpliedvolatilityfrompubliclytradedoptionsontheCompany’sstockatthedateofgrant,historicalimpliedvolatilityoftheCompany’spubliclytradedoptionsandotherfactors.Therisk-freeinterestrateisbasedontheimpliedyieldonaU.S.Treasuryzero-couponissuewitharemainingtermequaltotheexpectedtermoftheoption.Thedividendyieldisbasedontheprojectedannualdividendpaymentpershare,dividedbythestockpriceatthedateofgrant.

DetailsoftheCompany’sstockoptionactivitiesaresummarizedbelow:

NumberofShares

(Inthousands)

Weighted-AverageExercisePrice

perShare

AverageRemainingContractual

Life AggregateIntrinsicValue

OptionsoutstandingasofJune30,2015 8,357 $ 76 7years $ 236Granted 1,317 112Exercised (2,633) 69Cancelled (214) 95OptionsoutstandingasofJune30,2016 6,827 $ 85 7years $366OptionsvestedasofJune30,2016 3,555 $ 74 5years $ 228

Theweighted-averagefairvaluepershareofeachoptiongrantedduringfiscalyears2016,2015and2014,estimatedatthegrantdateusingtheBlack-Scholesoptionpricingmodelwas$13.21,$9.65and$9.69,respectively.Thetotalintrinsicvalueofoptionsexercisedinfiscalyears2016,2015and2014was$142,$140and$42,respectively.

StockoptionawardsoutstandingasofJune30,2016,havebeengrantedatpricesthatareequaltothemarketvalueofthestockonthedateofgrant.Stockoptiongrantsgenerallyvestoverfouryearsandexpirenolaterthantenyearsafterthegrantdate.TheCompanyrecognizescompensationexpenseratablyoverthevestingperiod.AsofJune30,2016,therewas$16oftotalunrecognizedcompensationcostrelatedtonon-vestedoptions,whichisexpectedtoberecognizedoveraremainingweighted-averagevestingperiodofoneyear,subjecttoforfeiturechanges.

RestrictedStockAwards

Thefairvalueofrestrictedstockawardsisestimatedonthedateofgrantbasedonthemarketpriceofthestockandisamortizedtocompensationexpenseonastraight-linebasisovertherelatedvestingperiods,whicharegenerallythreetofouryears.Thetotalnumberofrestrictedstockawardsexpectedtovestisadjustedbyactualandestimatedforfeitures.Restrictedstockgrantsreceivedividenddistributionsearnedduringthevestingperioduponvesting.

AsofJune30,2016,therewas$1oftotalunrecognizedcompensationcostrelatedtonon-vestedrestrictedstockawards,whichisexpectedtoberecognizedoveraremainingweighted-averagevestingperiodofoneyear.Thetotalfairvalueofthesharesthatvestedineachofthefiscalyears2016,2015and2014was$1,respectively.Theweighted-averagegrant-datefairvalueofawardsgrantedwas$128.91,$95.67and$89.25pershareforfiscalyears2016,2015and2014,respectively.

53

NOTE16.STOCK-BASEDCOMPENSATIONPLANS(Continued)

AsummaryofthestatusoftheCompany’srestrictedstockawardsispresentedbelow:

NumberofShares

(Inthousands)

Weighted-AverageGrantDateFairValueperShare

RestrictedstockawardsasofJune30,2015 18 $ 91Granted 5 129Vested (9) 88Forfeited (1) 106RestrictedstockawardsasofJune30,2016 13 $ 108

PerformanceUnits

AsofJune30,2016,therewas$37inunrecognizedcompensationcostrelatedtonon-vestedperformanceunitgrantsthatisexpectedtoberecognizedoveraremainingweighted-averageperformanceperiodofoneyear.Theweighted-averagegrant-datefairvalueofawardsgrantedwas$92.35,$89.75and$84.45pershareforfiscalyears2016,2015and2014,respectively.

AsummaryofthestatusoftheCompany’sperformanceunitawardsispresentedbelow:

NumberofShares

(Inthousands)

Weighted-AverageGrantDateFairValueperShare

PerformanceunitawardsasofJune30,2015 1,123 $ 79Granted 286 92Distributed (377) 70Forfeited (80) 87PerformanceunitawardsasofJune30,2016 952 $ 90PerformanceunitsvestedanddeferredasofJune30,2016 157 $ 58

Thenon-vestedperformanceunitsoutstandingasofJune30,2016and2015were794,000and944,000,respectively,andtheweightedaveragegrantdatefairvaluewas$95.18and$81.92pershare,respectively.Totalsharesvestedduringfiscalyear2016were354,000,whichhadaweightedaveragegrantdatefairvaluepershareof$72.11.Duringfiscalyear2016,$25ofthevestedawardswaspaidbytheissuanceofsharesand$1ofthevestedawardswasdeferred.Deferredsharescontinuetoearndividends,whicharealsodeferred.Thetotalfairvalueofsharesvestedwas$26,$24and$0duringfiscalyears2016,2015and2014,respectively.Uponvesting,therecipientsofthegrantsreceivethedistributionassharesor,ifpreviouslyelectedbyeligiblerecipients,asdeferredstock.

DeferredStockUnitsforNonemployeeDirectors

NonemployeedirectorsreceiveannualgrantsofdeferredstockunitsundertheCompany’sdirectorcompensationprogramandcanelecttoreceivealloraportionoftheirannualretainersandfeesintheformofdeferredstockunits.Thedeferredstockunitsreceivedividenddistributions,whicharereinvestedasdeferredstockunits,andarerecognizedattheirfairvalueonthedateofgrant.EachdeferredstockunitrepresentstherighttoreceiveoneshareoftheCompany’scommonstockfollowingthecompletionofadirector’sservice.

Duringfiscalyear2016,theCompanygranted13,000deferredstockunits,reinvesteddividendsof6,000unitsanddistributed16,000shares,whichhadaweighted-averagefairvalueongrantdateof$126.65,$124.03and$62.70pershare,respectively.AsofJune30,2016,244,000unitswereoutstanding,whichhadaweighted-averagefairvalueonthegrantdateof$71.13pershare.

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NOTE17.OTHER(INCOME)EXPENSE,NET

ThemajorcomponentsofOther(income)expense,net,forthefiscalyearsendedJune30were:

2016 2015 2014

Incomefromequityinvestees $ (15) $ (14) $ (13)Interestincome (5) (4) (3)Lowincomehousingpartnershipgains,net - (13) -Foreignexchangetransactionlosses,net 1 9 1Amortizationoftrademarksandotherintangibleassets 8 8 8Intangibleassetimpairmentcharges 9 3 3Other (5) (2) (6)Total $ (7) $(13) $(10)

InApril2016,theCompanysolditsLosAngelesbleachmanufacturingfacility,previouslyreportedintheCleaningsegment,whichresultedin$20incashproceedsfrominvestingactivitiesandagainof$(11)includedinOtherinthetableabovefortheyearendedJune30,2016.

Duringfiscalyear2016,theCompanyrecognized$9ofintangibleassetimpairmentcharges,ofwhich$6relatedtotheAplicare®trademarkwithintheCleaningsegment.TheAplicare®trademarkimpairmentwasrecognizedbasedontheanticipatedimpactonfutureresultsfromacompetitivemarketentrant.

InvestmentinLow-IncomeHousingPartnerships

TheCompanyowns,directlyorindirectly,limitedpartnershipinterestsinlow-incomehousingpartnerships,whichareaccountedforusingtheequitymethodofaccounting.Thesepartnershipsareconsideredtobevariableinterestentities;however,theCompanydoesnotconsolidatethembecauseitdoesnothavethepowertodirectthepartnerships’activitiesthatsignificantlyimpacttheireconomicperformance.Thepurposeofthepartnershipsistodevelopandoperatelow-incomehousingrentalproperties.Thegeneralpartners,whotypicallyhold1%ofthepartnershipinterests,arethirdpartiesunrelatedtotheCompanyanditsaffiliates,andareresponsibleforcontrollingandmanagingthebusinessandfinancialoperationsofthepartnerships.Asalimitedpartner,theCompanyisnotresponsibleforanyoftheliabilitiesandobligationsofthepartnershipsnordothepartnershipsortheircreditorshaveanyrecoursetotheCompanyotherthanforthecapitalrequirements.Allavailabletaxbenefitsfromlow-incomehousingtaxcreditsprovidedbythepartnershipswereclaimedasoffiscalyear2012.Theriskthatpreviouslyclaimedlow-incomehousingtaxcreditsmightberecapturedorotherwiseretroactivelyinvalidatedisconsideredremote.

InApril2015,alow-incomehousingpartnership,inwhichtheCompanywasalimitedpartner,solditsrealestateholdings.Therealpropertysaleresultedin$15incashproceedsfrominvestingactivitiesandagainof$(14)recordedtoOther(income)expense,net,ontheconsolidatedstatementofearningsfortheyearendedJune30,2015.

55

NOTE18.INCOMETAXES

Theprovisionforincometaxesoncontinuingoperations,bytaxjurisdiction,consistedofthefollowingforthefiscalyearsendedJune30:

2016 2015 2014

CurrentFederal $254 $265 $247State 31 28 34Foreign 45 38 45Totalcurrent 330 331 326 DeferredFederal 11 (13) (19)State 1 (1) 2Foreign (7) (2) (4)Totaldeferred 5 (16) (21)Total $ 335 $ 315 $ 305

Thecomponentsofearningsfromcontinuingoperationsbeforeincometaxes,bytaxjurisdiction,consistedofthefollowingforthefiscalyearsendedJune30:

2016 2015 2014

UnitedStates $900 $829 $754Foreign 83 92 130Total $ 983 $ 921 $ 884

AreconciliationofthestatutoryfederalincometaxratetotheCompany’seffectivetaxrateoncontinuingoperationsfollowsforthefiscalyearsendedJune30:

2016 2015 2014

Statutoryfederaltaxrate 35.0% 35.0% 35.0%Statetaxes(netoffederaltaxbenefits) 2.1 2.1 2.6Taxdifferentialonforeignearnings 0.5 (0.3) (0.3)Domesticmanufacturingdeduction (2.4) (2.1) (2.3)Changeinvaluationallowance 0.5 0.6 0.6Otherdifferences (1.6) (1.1) (1.0)Effectivetaxrate 34.1% 34.2% 34.6%

ApplicableU.S.incometaxesandforeignwithholdingtaxeshavenotbeenprovidedonapproximately$216ofundistributedearningsofcertainforeignsubsidiariesasofJune30,2016,becausetheseearningsareconsideredindefinitelyreinvested.Theestimatednetfederalincometaxliabilitythatcouldariseiftheseearningswerenotindefinitelyreinvestedisapproximately$56.ApplicableU.S.incomeandforeignwithholdingtaxesareprovidedontheseearningsintheperiodsinwhichtheyarenolongerconsideredindefinitelyreinvested.

Taxbenefitsresultingfromstock-basedpaymentarrangementsthatareinexcessofthetaxbenefitsrecordedinnetearningsoverthevestingperiodofthosearrangements(excesstaxbenefits)arerecordedasincreasestoAdditionalpaid-incapital.Excesstaxbenefitsofapproximately$51,$42,and$11wererealizedandrecordedtoAdditionalpaid-incapitalforfiscalyears2016,2015and2014,respectively.

56

NOTE18.INCOMETAXES(Continued)

Thecomponentsofnetdeferredtaxassets(liabilities)asofJune30areshownbelow:

2016 2015

Deferredtaxassets(a)Compensationandbenefitprograms $ 193 $ 191BasisdifferencerelatedtoVentureAgreement 30 30Accrualsandreserves 34 43Inventorycosts 21 19Netoperatinglossandtaxcreditcarryforwards 48 41Other 54 61Subtotal 380 385Valuationallowance (37) (34)Totaldeferredtaxassets 343 351Deferredtaxliabilities(a)Fixedandintangibleassets (325) (277)Low-incomehousingpartnerships (23) (22)Unremittedforeignearnings (16) (7)Other (25) (24)Totaldeferredtaxliabilities (389) (330)Netdeferredtaxassets(liabilities) $ (46) $ 21

(a)TheCompanyprospectivelyadoptedASUNo.2015-17,"IncomeTaxes(Topic740):BalanceSheetClassificationofDeferredTaxes,"requiringalldeferredtaxassetsandliabilitiestobeclassifiedasnoncurrent.SeeNote1forfurtherdetails.

TheCompanyperiodicallyreviewsitsdeferredtaxassetsforrecoverability.AvaluationallowanceisestablishedwhentheCompanybelievesthatitismorelikelythannotthatsomeportionofitsdeferredtaxassetswillnotberealized.Valuationallowanceshavebeenprovidedtoreducedeferredtaxassetstoamountsconsideredrecoverable.DetailsofthevaluationallowancewereasfollowsasofJune30:

2016 2015

Valuationallowanceatbeginningofyear $ (34) $ (51)Netdecrease/(increase)forotherforeigndeferredtaxassets 3 15Netdecrease/(increase)forforeignnetoperatinglosscarryforwardsandtaxcredits (6) 2Valuationallowanceatendofyear $ (37) $ (34)

AsofJune30,2016,theCompanyhadforeigntaxcreditcarryforwardsof$15forU.S.incometaxpurposeswithexpirationdatesbetweenfiscalyears2024and2025.Taxcreditcarryforwardsinforeignjurisdictionsof$19haveexpirationdatesinfiscalyear2031.Taxcreditcarryforwardsinforeignjurisdictionsof$1canbecarriedforwardindefinitely.Taxbenefitsfromforeignnetoperatinglosscarryforwardsof$16haveexpirationdatesbetweenfiscalyears2017and2036.Taxbenefitsfromforeignnetoperatinglosscarryforwardsof$12canbecarriedforwardindefinitely.

TheCompanyfilesincometaxreturnsintheU.S.federalandvariousstate,localandforeignjurisdictions.ThefederalstatuteoflimitationshasexpiredforalltaxyearsthroughJune30,2012.Variousincometaxreturnsinstateandforeignjurisdictionsarecurrentlyintheprocessofexamination.

TheCompanyrecognizesinterestandpenaltiesrelatedtouncertaintaxpositionsasacomponentofincometaxexpense.AsofJune30,2016and2015,thetotalbalanceofaccruedinterestandpenaltiesrelatedtouncertaintaxpositionswas$3and$10,respectively.Interestandpenaltiesrelatedtouncertaintaxpositionsincludedinincometaxexpenseresultedinanetbenefitof$1,anetbenefitof$1,andanetexpenseof$3infiscalyears2016,2015and2014,respectively.

57

NOTE18.INCOMETAXES(Continued)

ThefollowingisareconciliationofthebeginningandendingamountsoftheCompany’sgrossunrecognizedtaxbenefits:

2016 2015 2014

Unrecognizedtaxbenefitsatbeginningofyear $ 38 $ 71 $ 69Grossincreases-taxpositionsinpriorperiods 3 3 3Grossdecreases-taxpositionsinpriorperiods (3) (8) (5)Grossincreases-currentperiodtaxpositions 8 6 7Grossdecreases-currentperiodtaxpositions - - -Lapseofapplicablestatuteoflimitations (4) (34) (1)Settlements (5) - (2)Unrecognizedtaxbenefitsatendofyear $ 37 $ 38 $ 71

IncludedinthebalanceofunrecognizedtaxbenefitsasofJune30,2016,2015and2014,arepotentialbenefitsof$27,$27and$58,respectively,whichifrecognized,wouldaffectnetearnings.DuringthefiscalyearendedJune30,2015,$32ofgrossunrecognizedtaxbenefitsrelatingtootherdiscontinuedoperationsforperiodspriortofiscalyear2015wererecognizedupontheexpirationoftheapplicablestatuteoflimitations.RecognitionofthesepreviouslydisclosedtaxbenefitshadnoimpactontheCompany’scashfloworearningsfromcontinuingoperationsforthefiscalyearsendedJune30,2016,2015and2014.

NOTE19.EMPLOYEEBENEFITPLANS

RetirementIncomePlans

EffectiveJuly1,2011,andaspartofasetoflong-term,cost-neutralenhancementstotheCompany’soverallemployeebenefitplans,thedomesticqualifiedretirementincomepensionplanwasfrozenforserviceaccrualandeligibilitypurposesformostparticipants,however,interestcreditshavecontinuedtoaccrueonparticipantbalances.AsofJune30,2016and2015,thebenefitsofthedomesticpensionplanarebasedoneitheremployeeyearsofserviceandcompensationorastateddollaramountperyearofservice.TheCompanyisthesolecontributortotheplaninamountsdeemednecessarytoprovidebenefitsandtotheextentdeductibleforfederalincometaxpurposes.Assetsoftheplanconsistprimarilyofinvestmentsincashequivalentsandcommoncollectivetrusts.

TheCompanycontributed$15toitsdomesticqualifiedpensionplanduringfiscalyear2016.Nocontributionsweremadeinfiscalyear2015and2014.TheCompany’sfundingpolicyforitsqualifiedplansistocontributeamountssufficienttomeetminimumfundingrequirementsassetforthinemployeebenefittaxlawsplusadditionalamountsastheCompanymaydeterminetobeappropriate.SubsequenttoJune30,2016,theCompanymadea$15discretionarycontributiontothepensionplan.

Contributionsmadetothedomesticnon-qualifiedpensionplanswere$16,$13and$13infiscalyears2016,2015and2014,respectively.

RetirementHealthCarePlans

TheCompanyprovidescertainhealthcarebenefitsforemployeeswhomeetage,participationandlengthofservicerequirementsatretirement.Theplanspaystatedpercentagesofcoveredexpensesafterannualdeductibleshavebeenmetorstatedreimbursementsuptoaspecifieddollarsubsidyamount.BenefitspaidtakeintoconsiderationpaymentsbyMedicareforthedomesticplan.Theplansarefundedasclaimsarepaid,andtheCompanyhastherighttomodifyorterminatecertainplans.

Theassumeddomestichealthcarecosttrendrateusedinmeasuringtheaccumulatedbenefitobligation(ABO)was6.75%forbothmedicalandprescriptiondrugsforfiscalyear2016.Theserateshavebeenassumedtograduallydecreaseeachyearuntilanassumedultimatetrendof4.5%isreachedin2037.ThehealthcarecosttrendrateassumptionhasaminimaleffectontheamountsreporteddueprimarilytotheexistenceofbenefitcapprovisionsintheCompany’sdomesticplan.Assuch,theeffectofahypothetical100basispointincreaseordecreaseintheassumeddomestichealthcarecosttrendrateonthetotalserviceandinterestcostcomponentsaswellasthepostretirementbenefitobligationwouldhavebeenimmaterialforeachofthefiscalyearsendedJune30,2016,2015and2014.

58

NOTE19.EMPLOYEEBENEFITPLANS(Continued)

FinancialInformationRelatedtoRetirementIncomeandRetirementHealthCare

SummarizedinformationfortheCompany’sretirementincomeandretirementhealthcareplansasofandforthefiscalyearsendedJune30isasfollows:

RetirementIncome Retirement

HealthCare

2016 2015 2016 2015

Changeinbenefitobligations:Projectedbenefitobligationasofbeginningofyear $ 639 $ 641 $ 45 $ 49Servicecost 1 2 - -Interestcost 26 25 2 2Actuarialloss(gain) 51 14 2 -Planamendments (1) - - (1)Translationandotheradjustments (1) (5) - (2)Benefitspaid (42) (38) (2) (3)Projectedbenefitobligationasofendofyear 673 639 47 45 Changeinplanassets:Fairvalueofassetsasofbeginningofyear $ 409 $ 432 $ - $ -Actualreturnonplanassets 26 6 - -Employercontributions 31 13 2 3Benefitspaid (42) (38) (2) (3)Translationandotheradjustments (1) (4) - -Fairvalueofplanassetsasofendofyear 423 409 - -Accruedbenefitcost,netfundedstatus $(250) $(230) $ (47) $ (45)Amountrecognizedinthebalancesheetsconsistsof:Pensionbenefitassets $ 1 $ 2 $ - $ -Currentaccruedbenefitliability (14) (16) (3) (3)Non-currentaccruedbenefitliability (237) (216) (44) (42)Accruedbenefitcost,net $ (250) $ (230) $ (47) $ (45)

59

NOTE19.EMPLOYEEBENEFITPLANS(Continued)

RetirementincomeplanswithABOinexcessofplanassetsasofJune30wereasfollows:

PensionPlans OtherRetirementPlans

2016 2015 2016 2015

Projectedbenefitobligation $575 $538 $76 $80Accumulatedbenefitobligation 574 538 76 80Fairvalueofplanassets 399 385 - -

TheABOforallpensionplanswas$596,$559and$563asofJune30,2016,2015and2014,respectively.

ThenetcostsoftheretirementincomeandhealthcareplansforthefiscalyearsendedJune30includedthefollowingcomponents:

RetirementIncome RetirementHealthCare

2016 2015 2014 2016 2015 2014

Servicecost $ 1 $ 2 $ 3 $ - $ - $ 1Interestcost 26 25 27 2 2 2Expectedreturnonplanassets (17) (20) (25) - - -Amortizationofunrecognizeditems 10 12 11 (3) 2 (4)Total $ 20 $ 19 $ 16 $ (1) $ 4 $ (1)

60

NOTE19.EMPLOYEEBENEFITPLANS(Continued)

ItemsnotyetrecognizedasacomponentofpostretirementexpenseasofJune30,2016,consistedof:

RetirementIncome Retirement

HealthCareNetactuarialloss(gain) $ 296 $ (13)Priorservicebenefit - (6)Netdeferredincometax(assets)liabilities (111) 7Accumulatedothercomprehensiveloss(income) $ 185 $ (12)

Netactuarialloss(gain)recordedinAccumulatedothercomprehensivenet(losses)incomeforthefiscalyearendedJune30,2016,includedthefollowing:

RetirementIncome Retirement

HealthCareNetactuarialloss(gain)asofbeginningofyear $264 $ (17)Amortizationduringtheyear (10) 2Loss(gain)duringtheyear 42 2Netactuarialloss(gain)asofendofyear $ 296 $ (13)

TheCompanyusesthestraight-lineamortizationmethodforunrecognizedpriorservicecostsandbenefits.Infiscalyear2017,theCompanyexpectstorecognize,onapre-taxbasis,$11ofthenetactuariallossasacomponentofnetperiodicbenefitcostforthePensionPlans.Inaddition,infiscalyear2017,theCompanyexpectstorecognize,onapre-taxbasis,$1ofthenetactuarialgainasacomponentofnetperiodicbenefitcostfortheretirementhealthcareplans.

Weighted-averageassumptionsusedtoestimatetheactuarialpresentvalueofbenefitobligationsasofJune30wereasfollows:

RetirementIncome RetirementHealthCare2016 2015 2016 2015

Discountrate 3.42% 4.20% 3.42% 4.16%Rateofcompensationincrease 2.92% 3.37% n/a n/a

Weighted-averageassumptionsusedtoestimatethenetperiodicpensionandotherpostretirementbenefitcostsasofJune30wereasfollows:

RetirementIncome

2016 2015 2014

Discountrate 4.20% 4.05% 4.39%Rateofcompensationincrease 3.37% 4.46% 3.44%Expectedreturnonplanassets 4.34% 5.28% 6.61%

RetirementHealthCare

2016 2015 2014

Discountrate 4.16% 4.00% 4.33%

Theexpectedlong-termrateofreturnassumptionisbasedonananalysisofhistoricalexperienceoftheportfolioandthesummationofprospectivereturnsforeachassetclassinproportiontothefund’scurrentassetallocation.

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NOTE19.EMPLOYEEBENEFITPLANS(Continued)

ExpectedbenefitpaymentsfortheCompany’spensionandotherpostretirementplansasofJune30,2016,wereasfollows:

RetirementIncome RetirementHealthCare

2017 $ 39 $ 32018 52 32019 39 32020 39 22021 39 2Fiscalyears2022through2026 193 12

Expectedbenefitpaymentsarebasedonthesameassumptionsusedtomeasurethebenefitobligationsandincludeestimatedfutureemployeeservice.

ThetargetallocationsandweightedaverageassetallocationsbyassetcategoryoftheinvestmentportfoliofortheCompany’sdomesticretirementincomeplansasofJune30were:

%TargetAllocation %ofPlanAssets

2016 2015 2016 2015

U.S.equity 11% 11% 11% 11%Internationalequity 12 12 11 12Fixedincome 74 74 74 74Other 3 3 4 3Total 100% 100% 100% 100%

Thetargetassetallocationisdeterminedbasedontheoptimalbalancebetweenriskandreturnand,attimes,maybeadjustedtoachievetheplan’soverallinvestmentobjectivetogeneratesufficientresourcestopaycurrentandprojectedplanobligationsoverthelifeofthedomesticqualifiedretirementincomeplan.

62

NOTE19.EMPLOYEEBENEFITPLANS(Continued)

Thefollowingtablesetsforthbylevelwithinthefairvaluehierarchy,theretirementincomeplans’assetscarriedatfairvalueasofJune30:

2016

Level1 Level2 Total

Cashequivalents $ 2 $ - $ 2CommoncollectivetrustsBondfunds - 307 307Internationalequityfunds - 56 56Domesticequityfunds - 44 44Realestatefund - 14 14Totalcommoncollectivetrusts - 421 421Totalassetsatfairvalue $ 2 $ 421 $ 423

2015

Level1 Level2 Total

Cashequivalents $ 3 $ - $ 3CommoncollectivetrustsBondfunds - 295 295Internationalequityfunds - 59 59Domesticequityfunds - 41 41Realestatefund - 11 11Totalcommoncollectivetrusts - 406 406Totalassetsatfairvalue $ 3 $406 $409

ThecarryingvalueofcashequivalentsapproximatesitsfairvalueasofJune30,2016and2015.

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NOTE19.EMPLOYEEBENEFITPLANS(Continued)

Commoncollectivetrustfundsarenotpubliclytradedand,therefore,areclassifiedasLevel2.Theyarevaluedatanetassetvalueunitpricedeterminedbytheportfolio’ssponsorbasedonthefairvalueofunderlyingassetsheldbythecommoncollectivetrustfundonJune30,2016and2015.

Thecommoncollectivetrustsareinvestedinvarioustruststhatattempttoachievetheirinvestmentobjectivesbyinvestingprimarilyinothercollectiveinvestmentfundswhichhavecharacteristicsconsistentwitheachtrust’soverallinvestmentobjectiveandstrategy.

DefinedContributionPlans

TheCompanyhasdefinedcontributionplansformostofitsdomesticemployees.TheplansincludeTheCloroxCompany401(k)Plan,TheCloroxCompany2011NonqualifiedDefinedContributionPlanandtheExecutiveRetirementPlan.Theaggregatecostofthedomesticdefinedcontributionplanswas$45,$45and$43infiscalyears2016,2015and2014,respectively.IncludedintheaggregatecostwasthecostofTheCloroxCompany401(k)Planof$41,$42and$38infiscalyears2016,2015and2014,respectively.TheCompanyalsohasdefinedcontributionplansforcertaininternationalemployees.Theaggregatecostoftheseforeignplanswas$3forthefiscalyearsendedJune30,2016,2015and2014.

NOTE20.SEGMENTREPORTING

TheCompanyoperatesthroughstrategicbusinessunitsthatareaggregatedintothefollowingfourreportablesegmentsbasedontheeconomicsandnatureoftheproductssold:

● Cleaningconsistsoflaundry,homecareandprofessionalproductsmarketedandsoldintheUnitedStates.Productswithinthissegmentincludelaundryadditives,includingbleachproductsundertheClorox®brandandClorox2®stainfighterandcolorbooster;homecareproducts,primarilyundertheClorox®,Formula409®,Liquid-Plumr®,Pine-Sol®,S.O.S®andTilex®brands;naturallyderivedproductsundertheGreenWorks®brand;andprofessionalcleaninganddisinfectingproductsundertheClorox®,Dispatch®,Aplicare®,HealthLink®andCloroxHealthcare®brands.

● Householdconsistsofcharcoal,catlitter,digestivehealthproductsandbags,wrapsandcontainerproductsmarketedandsoldintheUnitedStates.ProductswithinthissegmentincludecharcoalproductsundertheKingsford®andMatchLight®brands;catlitterproductsundertheFreshStep®,ScoopAway®

andEverClean®brands;digestivehealthproductsundertheRenewLife®brand;andbags,wrapsandcontainersundertheGlad®brand.● Lifestyleconsistsoffoodproducts,water-filtrationsystemsandfiltersandnaturalpersonalcareproductsmarketedandsoldintheUnitedStates.Products

withinthissegmentincludedressingsandsauces,primarilyundertheHiddenValley®,KCMasterpiece®andSoyVay®brands;water-filtrationsystemsandfiltersundertheBrita®brand;andnaturalpersonalcareproductsundertheBurt’sBees®brand.

● InternationalconsistsofproductssoldoutsidetheUnitedStates.Productswithinthissegmentincludelaundry,homecare,water-filtration,digestivehealthproducts,charcoalandcatlitterproducts,dressingsandsauces,bags,wrapsandcontainersandnaturalpersonalcareproducts,primarilyundertheClorox®

,Glad®,PinoLuz®,Ayudin®,Limpido®,Clorinda®,Poett®,Mistolin®,Lestoil®,BonBril®,Brita®,GreenWorks®,Pine-Sol®,AguaJane®

,Chux®,RenewLife®,Kingsford®,FreshStep®,ScoopAway®,EverClean®,KCMasterpiece®,HiddenValley®andBurt’sBees®brands.

Certainnon-allocatedadministrativecosts,interestincome,interestexpenseandvariousothernon-operatingincomeandexpensesarereflectedinCorporate.Corporateassetsincludecashandcashequivalents,propertyandequipment,otherinvestmentsanddeferredtaxes.

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NOTE20.SEGMENTREPORTING(Continued)

FiscalYear Cleaning Household Lifestyle International Corporate Total

Company

Netsales 2016 $1,912 $1,862 $990 $ 997 $ $5,7612015 1,824 1,794 950 1,087 - 5,6552014 1,776 1,709 936 1,093 - 5,514

Earnings(losses)fromcontinuingoperationsbeforeincometaxes 2016 511 428 251 66 (273) 983

2015 445 375 257 79 (235) 9212014 428 326 258 99 (227) 884

Incomefromequityinvestees 2016 - - - 15 - 152015 - - - 14 - 142014 - - - 13 - 13

Totalassets 2016 883 1,092 880 1,057 606 4,5182015 876 725 860 1,057 646 4,164

Capitalexpenditures 2016 44 83 18 24 3 1722015 35 50 11 25 4 1252014 37 53 11 31 5 137

Depreciationandamortization 2016 61 60 19 21 4 1652015 52 67 19 24 7 1692014 49 67 19 25 17 177

Significantnoncashchargesincludedinearnings(losses)fromcontinuingoperationsbeforeincometaxes:Share-basedcompensation 2016 10 8 5 1 21 45

2015 8 7 4 1 12 322014 11 9 5 1 10 36

65

NOTE20.SEGMENTREPORTING(Continued)

AllintersegmentsalesareeliminatedandarenotincludedintheCompany’sreportablesegments’netsales.

NetsalestotheCompany’slargestcustomer,WalmartStores,Inc.anditsaffiliates,were27%,26%and27%ofconsolidatednetsalesforeachofthefiscalyearsendedJune30,2016,2015and2014,respectively,andoccurredineachoftheCompany’sreportablesegments.Noothercustomersaccountedformorethan10%ofconsolidatednetsalesinanyofthesefiscalyears.Duringfiscalyears2016,2015and2014,theCompany’sfivelargestcustomersaccountedfor46%,45%,and45%ofitsconsolidatednetsalesforeachofthethreefiscalyears,respectively.

ThreeoftheCompany’sproductlineshaveaccountedfor10%ormoreofconsolidatednetsalesduringeachofthepastthreefiscalyears.Infiscalyears2016,2015and2014,salesofliquidbleachrepresentedapproximately13%,14%and13%oftheCompany’sconsolidatednetsales,respectively,approximately25%,26%,and26%ofnetsalesintheCleaningsegmentforeachsuchyears,respectively,andapproximately27%,27%and28%ofnetsalesintheInternationalsegment,respectively.Salesoftrashbagsrepresentedapproximately13%,14%and13%oftheCompany’sconsolidatednetsalesineachofthefiscalyears2016,2015and2014,respectively,andapproximately37%,38%and36%ofnetsalesintheHouseholdsegment,respectively,foreachsuchyears.Salesofcharcoalrepresentedapproximately11%oftheCompany’sconsolidatednetsalesandapproximately34%ofnetsalesintheHouseholdsegmentinfiscalyears2016,2015and2014.

Netsalesandproperty,plantandequipment,net,bygeographicareaasofandforthefiscalyearsendedJune30wereasfollows:

FiscalYear

UnitedStates Foreign

TotalCompany

Netsales 2016 $4,805$ 956$5,7612015 4,609 1,046 5,6552014 4,466 1,048 5,514

Property,plantandequipment,net 2016 $ 799 $ 107 $ 9062015 801 117 918

NOTE21.RELATEDPARTYTRANSACTIONS

TheCompanyholdsvariousequityinvestmentswithownershippercentagesofupto50%inanumberofconsumerproductsbusinesses,mostofwhichoperateoutsidetheUnitedStates.Theequityinvestments,presentedinOtherassetsaccountedforundertheequitymethod,were$59asofthefiscalyearsendedJune30,2016and2015.TheCompanyhasnoongoingcapitalcommitments,loanrequirements,guaranteesoranyothertypesofarrangementsunderthetermsofitsagreementsthatwouldrequireanyfuturecashcontributionsordisbursementsarisingoutofanequityinvestment.

TransactionswiththeCompany’sequityinvesteestypicallyrepresentpaymentsforcontractmanufacturingandpurchasesofrawmaterials.Paymentstorelatedparties,includingequityinvestees,forsuchtransactionsduringthefiscalyearsendedJune30,2016,2015and2014were$57,$55and$57,respectively.ReceiptsfromandendingaccountsreceivableandpayablebalancesrelatedtotheCompany’srelatedpartieswerenotsignificantduringorasoftheendofeachofthefiscalyearspresented.

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NOTE22.UNAUDITEDQUARTERLYDATA

Dollarsinmillions,exceptmarketpriceandpersharedata QuartersEnded

September30 December31 March31 June30 TotalYearFiscalyearendedJune30,2016

Netsales $ 1,390 $ 1,345 $ 1,426 $ 1,600 $ 5,761

Costofproductssold 765 745 780 873 3,163

Earningsfromcontinuingoperations 173 151 159 165 648

(Losses)earningsfromdiscontinuedoperations,

netoftax (1) (2) 3 - -

Netearnings 172 149 162 165 648

Percommonshare:

Basic

Continuingoperations $ 1.34 $ 1.16 $ 1.23 $ 1.28 $ 5.01

Discontinuedoperations (0.01) (0.01) 0.02 - -

Basicnetearningspershare $ 1.33 $ 1.15 $ 1.25 $ 1.28 $ 5.01

Diluted

Continuingoperations $ 1.32 $ 1.14 $ 1.21 $ 1.26 $ 4.92

Discontinuedoperations (0.01) (0.01) 0.02 - -

Dilutednetearningspershare $ 1.31 $ 1.13 $ 1.23 $ 1.26 $ 4.92

Dividendsdeclaredpercommonshare $ 0.77 $ 0.77 $ 0.77 $ 0.80 $ 3.11

Marketprice(NYSE)

High $ 119.75 $ 131.78 132.19 $ 138.41 $ 138.41

Low 104.26 114.06 122.40 119.23 104.26

Year-end 138.39

FiscalyearendedJune30,2015

Netsales $ 1,352 $ 1,345 $ 1,401 $ 1,557 $ 5,655

Costofproductssold 774 773 796 847 3,190

Earningsfromcontinuingoperations 145 128 144 189 606

Lossesfromdiscontinuedoperations,

netoftax (55) (3) 30 2 (26)

Netearnings 90 125 174 191 580

Percommonshare:

Basic

Continuingoperations $ 1.12 $ 0.98 $ 1.09 $ 1.46 $ 4.65

Discontinuedoperations (0.42) (0.02) 0.22 0.02 (0.20)

Basicnetearningspershare $ 0.70 $ 0.96 $ 1.31 $ 1.48 $ 4.45

Diluted

Continuingoperations $ 1.10 $ 0.97 $ 1.08 $ 1.44 $ 4.57

Discontinuedoperations (0.42) (0.02) 0.22 0.02 (0.20)

Dilutednetearningspershare $ 0.68 $ 0.95 $ 1.30 $ 1.46 $ 4.37

Dividendsdeclaredpercommonshare $ 0.74 $ 0.74 $ 0.74 $ 0.77 $ 2.99

Marketprice(NYSE)

High $ 112.70 $ 112.65 $ 106.36 $ 98.31 $ 112.70

Low 103.77 102.95 95.19 86.03 86.03

Year-end 104.02

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FIVE-YEARFINANCIALSUMMARYTheCloroxCompany

YearsendedJune30

Dollarsinmillions,exceptpersharedata 2016 2015 2014 2013 2012

OPERATIONSNetsales $5,761 $5,655 $5,514 $5,533 $5,379Grossprofit 2,598 2,465 2,356 2,391 2,272Earningsfromcontinuingoperations $ 648 $ 606 $ 579 $ 573 $ 535(Losses)earningsfromdiscontinuedoperations,netoftax - (26) (21) (1) 6Netearnings $ 648 $ 580 $ 558 $ 572 $ 541COMMONSTOCKEarningspershareContinuingoperationsBasic $ 5.01 $ 4.65 $ 4.47 $ 4.37 $ 4.09Diluted 4.92 4.57 4.39 4.31 4.05Dividendsdeclaredpershare $ 3.11 $ 2.99 $ 2.87 $ 2.63 $ 2.44

AsofJune30

Dollarsinmillions 2016 2015 2014 2013 2012

OTHERDATATotalassets $ 4,518 $ 4,164 $ 4,258 $ 4,311 $ 4,355Long-termdebt 1,797 1,796 1,595 2,170 1,571

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Exhibit99.2

VALUATIONANDQUALIFYINGACCOUNTSANDRESERVES(Dollarsinmillions)

ColumnA ColumnB ColumnC ColumnD ColumnEAdditions Deductions

Description

Balanceatbeginningofperiod

Chargedtocostsandexpenses

Creditedtocostsandexpenses

Creditedtootheraccounts

Balanceatend

ofperiod

AllowancefordoubtfulaccountsYearendedJune30,2016 $ (4) $ (1) $ - $ - $ (5)YearendedJune30,2015 (3) (1) - - (4)YearendedJune30,2014 (5) - 2 - (3)LIFOallowanceYearendedJune30,2016 $ (34) $ (1) $ - $ 3 $ (32)YearendedJune30,2015 (36) - - 2 (34)YearendedJune30,2014 (40) - 3 1 (36)ValuationallowanceondeferredtaxassetsYearendedJune30,2016 $ (34) $ (5) $ - $ 2 $ (37)YearendedJune30,2015 (51) (4) - 21 (34)YearendedJune30,2014 (36) (25) - 10 (51)

1

Exhibit99.3

THECLOROXCOMPANYRECONCILIATIONOFECONOMICPROFIT(UNAUDITED)(1)

Dollarsinmillions FY16 FY15 FY14

Earningsfromcontinuingoperationsbeforeincometaxes $ 983 $ 921 $ 884NoncashU.S.GAAPrestructuringandintangibleassetimpairmentcosts 9 1 3Interestexpense 88 100 103Earningsfromcontinuingoperationsbeforeincometaxes,noncashU.S.GAAPrestructuringandintangibleassetimpairmentcosts,andinterestexpense $ 1,080 $ 1,022 $ 990Incometaxesonearningsfromcontinuingoperationsbeforeincometaxes,noncashU.S.GAAPrestructuringandintangibleassetimpairmentcostsandinterestexpense(2) 368 350 342Adjustedaftertaxprofit $ 712 $ 672 $ 648

Averagecapitalemployed(3) 2,472 2,393 2,494

Capitalcharge(4) 222 214 225Economicprofit(1)(Adjustedaftertaxprofitlesscapitalcharge) $ 490 $ 458 $ 423

(1)Economicprofit(EP)isdefinedbytheCompanyasearningsfromcontinuingoperationsbeforeincometaxes,excludingnoncashU.S.GAAPrestructuringandintangibleassetimpairmentcosts,andinterestexpense;lessanamountoftaxbasedontheeffectivetaxrate,andlessachargeequaltoaveragecapitalemployedmultipliedbyacostofcapitalrate.EPisakeyfinancialmetricthattheCompany’smanagementusestoevaluatebusinessperformanceandallocateresources,andisacomponentindeterminingemployeeincentivecompensation.TheCompany’smanagementbelievesEPprovidesadditionalperspectivetoinvestorsaboutfinancialreturnsgeneratedbythebusinessandrepresentsprofitgeneratedoverandabovethecostofcapitalusedbythebusinesstogeneratethatprofit.

(2) Thetaxrateappliedistheeffectivetaxrateonearningsfromcontinuingoperations,whichwas34.1%,34.2%and34.6%infiscalyears2016,2015and2014,respectively.

(3) Totalcapitalemployedrepresentstotalassetslessnon-interestbearingliabilities.AdjustedcapitalemployedrepresentstotalcapitalemployedadjustedtoaddbackcurrentyearaftertaxnoncashU.S.GAAPrestructuringandintangibleassetimpairmentcosts.Averagecapitalemployedistheaverageofadjustedcapitalemployedforthecurrentyearandtotalcapitalemployedfortheprioryear,basedonyear-endbalances.Seebelowfordetailsoftheaveragecapitalemployedcalculation:

Totalassets $ 4,518$ 4,164$ 4,258Less:Accountspayableandaccruedliabilities(5) 1,032 976 912Incometaxespayable - 31 8Otherliabilities(5) 784 745 768Deferredincometaxes 82 95 103Non-interestbearingliabilities 1,898 1,847 1,791Totalcapitalemployed 2,620 2,317 2,467AftertaxnoncashU.S.GAAPrestructuringandintangibleassetimpairmentcosts 6 1 2Adjustedcapitalemployed $ 2,626 $ 2,318 $ 2,469Averagecapitalemployed $ 2,472 $ 2,393 $ 2,494

(4)Capitalchargerepresentsaveragecapitalemployedmultipliedbyacostofcapital,whichwas9%forallfiscalyearspresented.Thecalculationofcapitalchargeincludestheimpactofroundingnumbers.

(5) AccountspayableandaccruedliabilitieswerecombinedintoonefinancialstatementlineasofJune30,2016.Thechangehasbeenretrospectivelyappliedtoallperiodspresented.AccountspayableandaccruedliabilitiesandOtherLiabilitiesareadjustedtoexcludeinterest-bearingliabilities.

1