Document:

FIRST AMENDMENT TO RIGHTS AGREEMENT

         This First Amendment to Rights Agreement (the  "Amendment") is made and
entered into  effective as of the 7th day of June,  2000, by and between Evans &
Sutherland  Computer  Corporation,  a  Utah  corporation  (the  "Company"),  and
American Stock Transfer & Trust Company, as Rights Agent (the "Rights Agent").

                                    Recitals

         A. Effective as of November 19, 1998 (the "Record  Date"),  the Company
and the Rights Agent entered into a Rights Agreement (the "Agreement"),  and the
Board of  Directors  of the Company  authorized  and  declared a dividend of one
preferred  share  purchase  right as described in the  Agreement (a "Right") for
each share of Common Stock of the Company outstanding as of the Record Date.

         B. The Agreement sets forth certain matters with respect to the nature,
terms, exercise, modification and redemption of the Rights.

         C. The rights are  currently  redeemable,  as provided in Section 23 of
the Agreement,  because no "Flip-In Event" (as defined in the Agreement) has yet
occurred (meaning that no person has become an "Acquiring  Person" as defined in
the Agreement).

         D. As  provided in Section 27 of the  Agreement,  so long as the Rights
are  redeemable,  the Company may in its sole and absolute  discretion,  and the
Rights  Agent  shall if the  Company so  directs,  amend any  provisions  of the
Agreement in any respect  without the approval of any holders of the Rights,  so
long as no such  amendment  changes  the  Redemption  Price (as  defined  in the
Agreement) of the Rights.

         E. The  Company  desires to amend the terms of the  Agreement  to allow
State of Wisconsin  Investment  Board  ("SWIB"),  a current  shareholder  of the
Company, to increase its equity interest in the Company to up to 19.9%,  without
becoming  an  Acquiring  Person,  such  as  would  trigger  various  rights  and
obligations under the Agreement.

         F. As  contemplated  by  Section  30  of  the  Agreement,  the Board of
Directors of the Company has approved the foregoing amendments to the Agreement.

         G. Pursuant to the  terms  of  the  Agreement,  the  Rights  Agent will
implement the amendment to the Agreement described herein.

                                    Agreement

         NOW THEREFORE, the Company and the Rights Agent agree as follows:

         1. Amendment of Agreement to Modify  Definition of "Acquiring  Person".
The  Agreement  is hereby  amended and modified to provide that SWIB will not be

<PAGE>

deemed to be an  Acquiring  Person  until it becomes  the  Beneficial  Owner (as
defined in the  Agreement)  of more than 19.9% of the shares of Common Stock (as
defined in the Agreement) then outstanding,  and all inconsistent  provisions of
the Agreement shall be construed to reflect such modification.  Unless otherwise
defined herein,  all  capitalized  terms herein shall have the meanings given to
them in the Agreement.

         2.  Modification  of  Section  1(a) of  Agreement.  The  definition  of
"Acquiring  Person"  as set forth in  Section  1(a) of the  Agreement  is hereby
modified to reflect the modification  referenced  above, to read in its entirety
as follows:

                           "(a) "Acquiring Person" shall mean (Y) any Person (as
         such  term is  hereinafter  defined)  other  than  State  of  Wisconsin
         Investment  Board ("SWIB") who or which shall be the  Beneficial  Owner
         (as such term is  hereinafter  defined) of 15% or more of the shares of
         Common Stock then  outstanding,  or (Z) SWIB on such date as it becomes
         the  Beneficial  Owner of more than 19.9% of the shares of Common Stock
         then outstanding,  but shall not include an Exempt Person (as such term
         is hereinafter  defined);  provided,  however, that (i) if the Board of
         Directors  of the  Company  determines  in good faith that a Person who
         would  otherwise  be an  Acquiring  Person  became  such  inadvertently
         (including,  without  limitation,  because  (A) such Person was unaware
         that it  beneficially  owned a  percentage  of Common  Stock that would
         otherwise  cause  such  Person  to be an  Acquiring  Person or (B) such
         Person was aware of the extent of its  Beneficial  Ownership  of Common
         Stock  but  had  no  actual  knowledge  of  the  consequences  of  such
         Beneficial Ownership under this Agreement) and without any intention of
         changing or influencing control of the Company,  then such person shall
         not be  deemed  to be or to have  become an  Acquiring  Person  for any
         purposes  of this  Agreement  unless and until such  Person  shall have
         failed to divest itself, as soon as practicable (as determined, in good
         faith,  by the  Board  of  Directors  of the  Company),  of  Beneficial
         Ownership of a sufficient number of shares of Common Stock so that such
         Person would no longer otherwise qualify as an Acquiring  Person;  (ii)
         if, as of the date hereof or prior to the first public  announcement of
         the adoption of this Agreement, any Person is or becomes the Beneficial
         Owner of 15% or more of the shares of Common  Stock  outstanding,  such
         Person  shall not be deemed  to be or to  become  an  Acquiring  Person
         unless and until such time as such Person shall, after the first public
         announcement of the adoption of this  Agreement,  become the Beneficial
         Owner of  additional  shares of Common Stock (other than  pursuant to a
         dividend or distribution paid or made by the Company on the outstanding
         Common Stock or pursuant to a split or subdivision  of the  outstanding
         Common  Stock),  unless,  upon  becoming the  Beneficial  Owner of such
         additional  shares  of  Common  Stock,  such  Person  is not  then  the
         Beneficial  Owner of 15% or more of the  shares  of Common  Stock  then
         outstanding;  and (iii) no Person shall  become an Acquiring  Person as
         the result of an  acquisition  of shares of Common Stock by the Company
         which,  by reducing  the number of shares  outstanding,  increases  the
         proportionate  number of shares of Common Stock  beneficially  owned by
         such  Person  to (i) 15% or more of the  shares of  Common  Stock  then
         outstanding  in the case of any Person  other  than SWIB,  or (ii) more
         than 19.9% of the shares of Common Stock then  outstanding  in the case
         of  SWIB,  provided,  however,  that  if  a  Person  shall  become  the
         Beneficial  Owner of (i) 15% or more of the shares of Common Stock then

                                       2

<PAGE>

        outstanding,  in the case of any person  other than SWIB,  or (ii) more
         than 19.9% of the shares of Common  Stock  outstanding,  in the case of
         SWIB,  by reason of such share  acquisitions  by the  Company and shall
         thereafter  become the  Beneficial  Owner of any  additional  shares of
         Common Stock (other than pursuant to a dividend or distribution paid or
         made by the Company on the  outstanding  Common  Stock or pursuant to a
         split or subdivision of the outstanding Common Stock), then such Person
         shall be deemed to be an  Acquiring  Person  unless upon  becoming  the
         Beneficial Owner of such additional  shares of Common Stock such Person
         does not  beneficially  own  either (i) 15% or more (in the case of any
         Person other than SWIB),  or (ii) more than 19.9% (in the case of SWIB)
         of the shares of Common  Stock then  outstanding.  For all  purposes of
         this Agreement, any calculation of the number of shares of Common Stock
         outstanding  at  any  particular   time,   including  for  purposes  of
         determining  the particular  percentage of such  outstanding  shares of
         Common Stock of which any Person is the Beneficial Owner, shall be made
         in  accordance  with the last  sentence of Rule  13d-3(d)(1)(i)  of the
         General  Rules and  Regulations  under the  Securities  Exchange Act of
         1934,  as  amended  (the  "Exchange  Act"),  as in  effect  on the date
         hereof."

3.  Modification  of Section 3(a) of the  Agreement.  The reference in the first
sentence of Section 3(a) of the  Agreement to 15%,  representing  the  threshold
Beneficial  Ownership of Common Stock by any Person other than an Exempt  Person
that would trigger a  Distribution  Date on the terms set forth in such Section,
is hereby  modified to be 15% or more in the case of any Person other than SWIB,
and more than 19.9% in the case of SWIB.

         4.  Agreement,  as  Modified,  to  Continue  in Full Force and  Effect;
Application of General Provisions.  Except as specifically  modified hereby, the
Agreement  shall  continue in full force and  effect.  This  Amendment  shall be
considered  to be and  construed  as a part of the  Agreement,  and the  general
provisions of the Agreement, including those set forth in Sections 26 through 34
of the Agreement, shall apply equally to this Amendment.

                                       3
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed, effective as of the date first set forth above.

                                    EVANS & SUTHERLAND COMPUTER CORPORATION

                                    By: /s/ James R. Oyler
                                        ------------------------------------

                                    Name: James R. Oyler
                                          ----------------------------------

                                    Title: President and CEO
                                           ---------------------------------

                                    AMERICAN STOCK TRANSFER & TRUST COMPANY,
                                    as Rights Agent

                                    By: /s/ Herbert J. Lemmer
                                        ------------------------------------

                                    Name: Herbert J. Lemmer
                                          ----------------------------------

                                    Title: Vice President
                                           ---------------------------------

                                       4LIMITED LIABILITY COMPANY OPERATING AGREEMENT
                                       OF
                                   Armus, LLC,
                      a Delaware Limited Liability Company

         THIS OPERATING AGREEMENT (this "Agreement") has been entered into as of
June 14, 2000, to be effective as of the  Effective  Date (as defined in SECTION
1.4 hereof),  by and between Church & Dwight Co.,  Inc., a Delaware  corporation
("CHD"), and USA Detergents,  Inc., a Delaware corporation ("USAD"),  (together,
the  "Initial  Members,"  and  together  with any persons who may  hereafter  be
admitted as such in accordance with the terms of this Agreement,  the "Members")
for the purpose of providing for the  organization  and operation of Armus,  LLC
(the  "Company"),  a limited  liability  company formed pursuant to the Delaware
Limited  Liability  Company Act, Title 6, Sections 18-101 et seq of the Delaware
Code (the "Act").

         WHEREAS,  the Initial  Members  desire to organize  the Company for the
purpose  of  establishing  a joint  venture  to combine  the  laundry  detergent
businesses of CHD and USAD;

         WHEREAS,  for tax  purposes  it is intended  that the Company  shall be
classified  as  a  "partnership,"   and  not  an  "association"   taxable  as  a
"corporation,"  as those  terms are  defined  in  Section  7701 of the  Internal
Revenue  Code of 1986,  as amended (the  "Code"),  and the  applicable  Treasury
regulations promulgated thereunder (the "Regulations"); and

         WHEREAS,  the Initial Members desire,  by entering into this Agreement,
to provide for the structure and operation of the Company.

         NOW,  THEREFORE,  in  consideration  of the foregoing  premises and the
mutual  covenants and obligations  set forth herein,  the Initial Members hereby
agree that the Company shall be structured and operated as follows:

                                   ARTICLE I.

                                    FORMATION

         1.1. NAME. The name of the Company is "Armus, LLC," and all business of
the Company shall be conducted  under that name or any fictitious  name or names
selected  by the Board (as  defined in SECTION  5.1  hereof)  from time to time,
provided that any such name reflects the Company's status as a limited liability
company and is otherwise permitted by applicable law.

         1.2.  PLACE OF  BUSINESS.  The  Company's  initial  principal  place of
business shall be 9 East Loockerman Street,  Dover, Delaware 19901 or such other
place or places as the Board  may from time to time  determine.  The  registered
agent for the service of process and the registered  office shall be that person
and location reflected in the Company's Certificate of Formation as filed in the
office of the Delaware Secretary of State on or as soon as practicable after the
date hereof.

         1.3. BUSINESS AND AUTHORITY. The Company is formed for the specific and
limited purpose of operating the laundry detergent joint venture between CHD and
USAD, which includes,  among other matters,  the  manufacture,  distribution and
sale of liquid and powder laundry  detergent and liquid fabric softener products
(the  "Business").  The  Company  shall  have  the  authority  to do all  things
necessary or convenient  to  accomplish  its purpose and operate the Business as
described in this SECTION 1.3. The Company exists only for the purpose specified
in this SECTION 1.3, and may not conduct any other business  without the Consent
(as defined in SECTION  2.4 hereof) of the  Members.  In  particular,  except as
specifically  contemplated by this  Agreement,  the Business shall not extend to
any activity  that will compete with any of the Other CHD Products or any of the
Other  USAD  Products  (each as defined in SECTION  6.2  below).  The  authority
granted to the Board  hereunder to bind the Company  shall be limited to actions
necessary or convenient to the Business.

         1.4 EFFECTIVE DATE AND TERM.  The  "Effective  Date" shall be the date,
not later than January 1, 2001,  specified by CHD in a notice  delivered to USAD
at any time after the date hereof (the date of such notice is referred to herein
as the "Trigger  Date");  PROVIDED,  however,  that the Effective Date shall not
occur prior to, and shall be  contingent  upon,  the  expiration  of the waiting
period, if any, required under the Hart-Scott-Rodino  Antitrust Improvements Act
(the "HSR Act"); PROVIDED FURTHER, that USAD's obligations hereunder,  including
without  limitation  the payment of any Capital  Contributions  (as  hereinafter
defined) and Change of Control (as hereinafter  defined) fees,  shall be subject
to the prior written consent of FINOVA Capital Corporation,  as agent and lender
(the  "Agent"),  and the other lenders (each a "Lender" and,  collectively,  the
"Lenders")  parties to that  certain  Amended  and  Restated  Loan and  Security
Agreement,  dated  February  25,  1999,  between  such  Lenders and USAD and its
subsidiaries  (the "USAD Loan  Agreement"),  under the USAD Loan  Agreement.  If
within forty five (45) days after the date hereof (the "Finova Consent  Period")
USAD  has  not  obtained  the  consent  of the  Agent  and  the  Lenders  to the
transactions  contemplated  hereby (including  without limitation Section 9.4(e)
hereof) or replaced the loan facilities  contemplated by the USAD Loan Agreement
(including the revolving credit facility, all term notes and loans and all other
credit  facilities  thereunder)  with facilities  reasonably  acceptable to CHD,
then,  notwithstanding  the fact that CHD has given notice of the Effective Date
as  contemplated  by this Section 1.4, CHD shall have the right,  exercisable by
written  notice to USAD no later than forty five (45) days after the  expiration
of the Finova Consent Period, to either (i) provide  replacement loan facilities
reasonably  acceptable to USAD or (ii) terminate  this Agreement  effective upon
delivery by CHD of such written  notice to USAD.  The term of the Company  shall
then continue until the Company's  dissolution in accordance with the provisions
of  ARTICLE X of this  Agreement.  If the  Effective  Date has not  occurred  by
January 1, 2001, this Agreement shall be null and void.

         1.5  AGREEMENT;  EFFECT  OF  INCONSISTENCIES  WITH THE  ACT.  It is the
express  intention  of the Members that this  Agreement  and the  contracts  and
documents  referred  to  herein  shall be the sole  source of  agreement  of the
parties with respect to the matters dealt with herein and,  except to the extent
a provision of this Agreement expressly incorporates federal income tax rules by
reference to sections of the Code or Regulations  or is expressly  prohibited or
ineffective  under the Act, this Agreement shall govern,  even when inconsistent
with, or different  than, the provisions of the Act or any other law or rule. To
the extent that any provision of this  Agreement is  prohibited  or  ineffective
under the Act,  this  Agreement  shall be deemed to be amended  to the  smallest
degree  possible  in order to make  this  Agreement  effective  under the Act in
accordance with the intent of the parties.  In the event the Act is subsequently
amended or  interpreted  in such a way to make any  provision of this  Agreement
that was formerly invalid valid,  such provision shall be considered to be valid
from the effective date of such interpretation or amendment.  The Members hereby
agree that each  Member  shall be  entitled  to rely on the  provisions  of this
Agreement, and no Member shall be liable to the Company or to any Member for any
action or  refusal  to act  taken in good  faith  reliance  on the terms of this
Agreement and which is in  substantial  compliance  with the terms  hereof.  The
Members hereby agree that the duties and  obligations  imposed on the Members as
such shall be those set forth in this Agreement, which is intended to govern the
relationship among and between the Company and the Members,  notwithstanding any
provision of the Act or common law to the contrary.

         1.6      CONDITIONS/HSR FILING.

         (a)  USAD's  obligation  to enter  into  this  Agreement  is  expressly
conditioned on CHD, concurrently with the execution of this Agreement,  entering
into (i) that certain Stock Purchase Agreement (the "Stock Purchase Agreement"),
dated as of the date  hereof,  by and among  CHD,  USAD and  Frederick  R. Adler
("Adler"), providing for the purchase by CHD of shares of USAD common stock from
USAD and Adler  and (ii)  that  certain  Put & Call  Agreement  (the "Put & Call
Agreement"),  dated as of the date  hereof,  by and among  CHD,  USAD and Adler,
providing for the right of CHD to call from Adler, and the right of Adler to put
to CHD, certain shares of USAD common stock.

         (b)  CHD's  obligation  to  enter  into  this  Agreement  is  expressly
conditioned on USAD, concurrently with the execution of this Agreement, entering
into (i) the Stock Purchase Agreement, (ii) the Put & Call Agreement, (iii) that
certain Registration Rights Agreement, dated as of the date hereof, between USAD
and CHD,  providing for the  registration of shares of USAD common stock held by
CHD and (iv) that certain Voting Agreement,  dated as of the date hereof, by and
among CHD, USAD and the USAD stockholders party thereto.

         (c) Each  party  shall use its best  efforts  to  determine  as soon as
practicable after the date hereof whether a filing is necessary  pursuant to the
HSR Act in connection with the formation and  capitalization  of the Company and
the acquisition by CHD of USAD common stock. In the event the parties  determine
that a filing or filings are necessary, each party shall use its best efforts to
complete the requisite  filings as soon as  practicable.  In the event that each
party is required to file as an  "acquiring  person,"  each party shall bear its
own  filing  fees.  In the  event  only  one  party  is  required  to file as an
"acquiring person," the parties shall split the filing fee.

                                   ARTICLE II.

                         MEMBERS AND OWNERSHIP INTERESTS

         2.1 MEMBERS.  There shall be one class of Members of the  Company,  and
all Members shall have the same relative  rights,  powers,  and duties except as
otherwise provided herein.

2.2 NAMES AND  ADDRESSES  AND OWNERSHIP  INTERESTS OF THE INITIAL  MEMBERS.  The
respective names, addresses and required initial capital contributions ("Capital
Contributions")  of the Initial Members of the Company are set forth beside each
such Member's name on SCHEDULE 2.2 hereto.

         2.3 REPRESENTATIONS  AND WARRANTIES.  Each Member hereby represents and
warrants to the Company and to the other  Members  that,  except as set forth on
SCHEDULE 2.3(A) hereto (as to USAD) or Schedule 2.3(b) hereto (as to CHD):

                  (a)  Such  Member   understands  and  acknowledges  that  such
Member's interest in the Company ("Ownership  Interest") has not been registered
under the Securities Act of 1933 or any state securities laws;

                  (b) Such Member  understands and  acknowledges  that Ownership
Interests may not be sold unless they are registered under the Securities Act of
1933 and applicable state securities laws, or pursuant to an exemption from such
registration requirements;

                  (c) The limitations on transfer  contained in this SECTION 2.3
and in ARTICLE IX of this Agreement  create an economic risk that such Member is
capable of bearing;

                  (d) Such  Member is  acquiring  its  Ownership  Interest  for
investment  and not with a view to the  resale or distribution thereof;

                  (e) All  property  contributed  to the Company as part of such
Member's Capital  Contribution has been or will be contributed free and clear of
all  liens,  pledges,  claims,  security  interests,  encumbrances  and  similar
interests of any kind whatsoever;

                  (f) Such Member has the authority to enter into and consummate
this  Agreement and the  transactions  contemplated  hereby,  subject to Section
1.6(c) all required third party  consents and approvals have been obtained,  and
this Agreement and all related  transactions  will not violate or cause a breach
or default under the terms of any instrument, agreement, law, rule or regulation
to which such Member is subject or by which it is bound.  Such Member  shall not
be deemed to have made any  representation  or  warranty  as to any  stockholder
approvals that may be necessary at the date of exercise of the purchase and sale
options set forth in Section 9.4 hereof; and

                  (g) Such Member has had the  opportunity to have its own legal
counsel  review (i) this  Agreement and (ii) all other  agreements  contemplated
hereby,  and based upon any such review,  has independently made the decision to
invest in the  Company  and  accept  the  economic  risks  associated  with such
investment.

         2.4 CONSENT OF MEMBERS.  The term "Consent" of the Members,  as used in
this Agreement, shall mean the unanimous approval, authorization or ratification
of all of the outstanding Ownership Interests of all Members duly given pursuant
to the provisions of SECTIONS 7.5 THROUGH 7.15, inclusive, which approval may be
withheld for any reason in the sole and absolute  discretion of any Member, with
or without cause.

                                  ARTICLE III.

                         CAPITAL CONTRIBUTIONS AND LOANS

     3.1 INITIAL CAPITAL  CONTRIBUTIONS.  Promptly upon the Effective Date, each
Member shall  deliver to the Company  payment of such Member's  initial  Capital
Contribution, which contributions shall include:

     (a) An exclusive  license,  in form and  substance to be negotiated in good
     faith  between the parties (the "CHD  License"),  of CHD's  technology  and
     intellectual  property with respect to liquid and powder laundry  detergent
     products,   including   without   limitation   liquid   fabric   softeners,
     manufactured  and sold by CHD as  listed on  SCHEDULE  3.1(A)  hereto,  but
     excluding CHD's "Delicare" line of products,  Arm & Hammer washing soda and
     fabric softener sheets (the "CHD Detergent Products");

     (b) An exclusive  license,  in form and  substance to be negotiated in good
     faith between the parties (the "USAD  License"),  of USAD's  technology and
     intellectual  property with respect to liquid and powder laundry  detergent
     products,   including   without   limitation   liquid   fabric   softeners,
     manufactured  and sold by USAD as listed on  SCHEDULE  3.1(B)  hereto  (the
     "USAD Detergent Products");

     (c) All  finished  goods  inventories  of CHD  Detergent  Products and USAD
     Detergent Products which are reasonably saleable within the next sixty (60)
     days; and

     (d) Cash in amounts  determined  unanimously  by the Board thirty (30) days
     before the Effective Date as necessary to fund working capital needs of the
     Company  during the ninety (90) days  following  the Effective  Date.  Each
     Member's  initial cash Capital  Contribution  shall be  determined so as to
     ensure that the total  aggregate  amount of the  Members'  initial  Capital
     Contributions  be split 60% CHD and 40% USAD.  If, due to an  imbalance  in
     finished goods  inventories  contributed to the Company,  USAD is unable to
     make its full initial cash  Capital  Contribution  required by this SECTION
     3.1(D),  then the  shortfall  shall be provided  by CHD and such  shortfall
     shall be treated as a loan by CHD to the  Company  (bearing  interest  at a
     market  rate)  which  shall be  repaid  to CHD as soon as the  Company  has
     sufficient cash flow to do so.

The  contributions  made  pursuant to  paragraphs  (a) and (b),  above,  will be
assigned a value of zero for the purpose of each Member's  Capital  Contribution
and Capital Account (as defined in SECTION 4.1).

     3.2  INTEREST  ON CAPITAL  CONTRIBUTIONS.  No Member  shall be  entitled to
receive any interest on such Member's Capital Contribution.

     3.3  ADDITIONAL  CAPITAL  CONTRIBUTIONS.  No Member  shall be  required  or
obligated to restore a deficit  Capital  Account balance upon the liquidation of
the Company or such Member's Ownership Interest in the Company.  No Member shall
be allowed or required to make any additional contribution to the capital of the
Company in excess of $3,000,000  in the  aggregate  during any six month period,
without  the  unanimous   authorization   of  the  Board.   Additional   capital
contributions from each Member of $3,000,000 or less in the aggregate during any
six month  period may be  required by a majority  of the Board.  All  additional
capital  contributions  shall be made by the Members in the same  proportion  as
their  average  percentage  allocations  of Net Profit and Net Loss  pursuant to
SECTION 4.4 hereof for the immediately preceding fiscal year of the Company.

     3.4  WITHDRAWAL  OF  CAPITAL.  Except in  connection  with  proceedings  to
dissolve the Company in accordance with the procedures set forth in ARTICLE X of
this  Agreement,  no Member may  withdraw any portion of such  Member's  Capital
Contribution,  or any portion of such Member's Capital Account, from the Company
without the prior unanimous authorization of the Board.

     3.5 LOANS BY MEMBERS.  Other than as provided in SECTION 3.1(D)  hereof,  a
Member  may make a loan or  advance  money or  property  to or on  behalf of the
Company,  only upon such  terms as the Board  has  unanimously  authorized.  Any
permitted  loan or advance  shall not  increase  the  lending  Member's  Capital
Account,   entitle  the  lending   Member  to  any  greater   share  of  Company
distributions  made in  respect of a Member's  Capital  Account or subject  such
lending Member to any greater  proportion of Company losses.  The amount of such
loans or advances shall be a debt owed by the Company to the lending Member, and
any interest  paid to the lending  Member shall be charged as any other  expense
against income of the Company.

                                   ARTICLE IV.

                CAPITAL ACCOUNTS, DISTRIBUTIONS, AND TAX MATTERS

     4.1 ESTABLISHMENT OF CAPITAL ACCOUNTS. A separate capital account ("Capital
Account") shall be established and maintained for each Member in accordance with
the  principles  set forth in  Sections  704(b)  and  704(c) of the Code and the
Regulations.  The Capital Account of each Member shall initially be equal to the
sum of: (i) the full  amount of cash  contributed  by such Member to the Company
and (ii) except as specifically  provided by Section 3.1, the fair market value,
as determined by the Board in good faith, of other property  contributed by such
Member to the Company  (net of  liabilities  secured by such  property  that the
Company is  considered  to assume or take  subject to under  Section  752 of the
Code).  The provisions of this Agreement  relating to the maintenance of Capital
Accounts are intended to comply with Regulation Section  1.704-1(b)  relating to
the maintenance of capital  accounts,  and shall be interpreted and applied in a
manner  consistent  with  such  Regulation.  In the  event  the  Board  deems it
advisable to modify the manner in which the Capital  Accounts,  or any debits or
credits thereto, are computed in order to comply with such Regulation, the Board
may make such  modification,  provided  that it is not likely to have a material
effect on the amounts which would otherwise be  distributable to any Member upon
the dissolution of the Company.

     4.2  INCREASES  AND DECREASES IN CAPITAL  ACCOUNTS.  Each Member's  Capital
Account shall be increased by any additional Capital  Contributions made by such
Member to the Company (in the case of contributed property,  such increase shall
equal the fair market value,  as determined by the Board in good faith,  of such
property  net of  liabilities  secured  by such  property  that the  Company  is
considered  to assume or take  subject to under  Section  752 of the Code) and a
Member's  allocated share of Net Profit (as defined in SECTION 4.3 hereof),  and
decreased by any money and the fair market value,  as determined by the Board in
good faith,  of any property  distributed  to such Member by the Company (net of
liabilities secured by the distributed property that the Member is considered to
assume or take  subject  to under  Section  752 of the  Code) and such  Member's
allocated share of Net Loss (as defined in SECTION 4.3 hereof).

     4.3 NET PROFIT AND NET LOSS. For the purposes of this  Agreement,  the term
"Net  Profit" or "Net  Loss"  shall mean an amount  equal to the  Company's  net
income or loss for the relevant  fiscal year or shorter  period,  determined  in
accordance  with  generally  accepted   accounting   principles  and  procedures
consistently applied.

     4.4  ALLOCATIONS  OF NET PROFIT AND NET LOSS. The Net Profit or Net Loss of
the Company for each fiscal year or shorter period  following the Effective Date
shall be allocated as follows:

                  (a) Except as  otherwise  expressly  provided in this  SECTION
4.4, Net Profit up to $30,000,000  (or a  proportionately  reduced amount of Net
Profit for a period  shorter than a full fiscal year) shall be allocated  65% to
CHD  and 35% to  USAD  and  any  Net  Profit  in  excess  of  $30,000,000  (or a
proportionately  reduced  amount of Net Profit for a period  shorter than a full
fiscal year) shall be allocated 55% to CHD and 45% to USAD;

                  (b) Notwithstanding  SECTION 4.4(A) hereof, in the event CHD's
operating  profit  for its 2000  fiscal  year  from  the  sale of CHD  Detergent
Products  (as  computed in  accordance  with EXHIBIT A hereto) is less than $***
(the  amount  of such  deficiency  being  hereinafter  referred  to as the  "CHD
Deficiency"),  then CHD's  allocable share of Net Profit up to $30,000,000 (or a
proportionately  reduced  amount of Net Profit for a period  shorter than a full
fiscal  year,  taking  into  account  spending  patterns  and other  appropriate
adjustments as determined in good faith by the unanimous  approval of the Board)
shall be  reduced,  but not below 60%,  in the same ratio as the CHD  Deficiency
bears  to  $***,  and  USAD's  allocable  share  of such  Net  Profit  shall  be
correspondingly  increased.  For example,  if the CHD  Deficiency  is $***,  the
adjustment  would be $***%.  CHD's  allocable  share would be reduced by ***% to
***% and USAD's  allocable  share would be increased  by ***% to ***%.  In no
event would CHD's allocable share be reduced below 60%;

                  (c) Notwithstanding SECTION 4.4(A) hereof, in the event USAD's
operating  profit  for its 2000  fiscal  year  from  the sale of USAD  Detergent
Products  (as  computed in  accordance  with EXHIBIT B hereto) is less than $***
(the  amount  of such  deficiency  being  hereinafter  referred  to as the "USAD
Deficiency"),  then USAD's allocable share of Net Profit up to $30,000,000 (or a
proportionately  reduced  amount of Net Profit for a period  shorter than a full
fiscal  year,  taking  into  account  spending  patterns  and other  appropriate
adjustments as determined in good faith by the unanimous  approval of the Board)
shall be reduced,  but not below 30%,  in the same ratio as the USAD  Deficiency
bears  to  $***,  and  CHD's  allocable  share  of  such  Net  Profit  shall  be
correspondingly  increased.  For example,  if the USAD  Deficiency is $***,  the
adjustment  would be $***%.  USAD's  allocable share would be reduced by ***% to
***% and CHD's  allocable  share would be increased by ***% to ***%. In no event
would USAD's allocable share be reduced below 30%;

                  (d) Net Loss shall be allocated first to each Member based on,
and to the extent of, previous allocations of Net Profit to such Member and then
based on the then  current  percentages  of Net Profit to be  allocated  to such
Member pursuant to this SECTION 4.4.  Notwithstanding  the foregoing,  except as
otherwise provided in this SECTION 4.4(D), no Member shall be allocated Net Loss
in any fiscal year or shorter period to the extent such allocation  would create
or  increase  a  deficit  in the  Capital  Account  of such  Member  (the  "Loss
Limitation").  Any Net Loss  otherwise  allocable  to a Member  but for the Loss
Limitation  ("Contingent Loss") shall be allocated among the other Members,  pro
rata based on their respective positive Capital Account balances, subject to the
Loss Limitation. Remaining Net Loss, if any, in excess of the Net Loss allocated
under the  immediately  preceding  sentence shall be allocated among the Members
pro rata based on their respective Capital Account balances.  To the extent that
Members are  allocated  Contingent  Loss,  subsequent  Net Profit first shall be
allocated  to the  Members in reverse  order of, and in an amount  equal to, the
Contingent  Loss  previously  allocated to them pursuant to this SECTION  4.4(D)
prior to any allocation of Net Profit in accordance with this SECTION 4.4; and

                  (e) In the event of a Transfer  (as  defined  in  SECTION  9.1
hereof) of all or any portion of an Ownership  Interest in  accordance  with the
provisions  of this  Agreement  at any time other than the end of a fiscal year,
the shares of items of Net Profit or Net Loss and special  allocations  of items
of income or loss  allocable  to such  Ownership  Interest  (or the  Transferred
portion thereof) shall be allocated between the transferor and the transferee in
a manner that is consistent with the applicable provisions of the Code.

     4.5 TAX ALLOCATIONS.

                  (a) Each item of income,  gain, loss,  deduction or credit for
federal,  state and local  income  tax  purposes  shall be  allocated  among the
Members in the same  proportion as the  allocation  of Net Profit,  Net Loss and
other items to the Members  pursuant to SECTION 4.4 hereof,  except as otherwise
provided  herein.  The  allocations  made  pursuant to this SECTION 4.5 shall be
solely for tax  purposes and shall not affect any  Member's  Capital  Account or
share of non-tax allocations or distributions under this Agreement.

                  (b) In the event the book value of any property contributed to
the  Company  by a Member  differs  from its tax basis,  allocations  of taxable
income,  gain, loss and deduction with respect to such property shall be made in
a manner which complies with Section 704(c) of the Code and the Regulations. The
Company may, in the sole discretion of the Board, make, or not make,  "curative"
or "remedial"  allocations  (within the meaning of the Regulations under Section
704(c) of the Code) of Net Profit or Net Loss with respect to such property.

     4.6 SPECIAL ALLOCATIONS. The following special allocations shall be made in
the following order:

                  (a) MINIMUM GAIN CHARGEBACK.  In the event that there is a net
decrease  during a fiscal year or shorter period in either Company  Minimum Gain
(within the meaning of the  definition  of partner  minimum  gain in  Regulation
Section  1.704-2(b)(2))  or Member  Nonrecourse  Debt  Minimum  Gain (within the
meaning of the definition of partner nonrecourse debt minimum gain in Regulation
Section  1.704-2(i)(3)),  then,  notwithstanding  any  other  provision  of this
Article  IV, each Member  shall  receive  such  special  allocation  of items of
Company  income  and gain as are  required  in order to  conform  to  Regulation
Section 1.704-2.

                  (b) QUALIFIED  INCOME OFFSET.  Subject to SECTION 4.6(A),  but
notwithstanding any other provision of this Article IV, items of income and gain
shall be specially  allocated to the Members and in a manner that  complies with
the   "qualified    income   offset"    requirement   of   Regulation    Section
1.704-1(b)(2)(ii)(d)(3).

                  (c) GROSS INCOME ALLOCATION.  In the event that a Member has a
deficit Capital Account at the end of any fiscal year or shorter period which is
in excess of the  amount  such  Member is  deemed  to be  obligated  to  restore
pursuant to the penultimate  sentences of Regulation Sections  1.704-2(g)(1) and
1.704-2(i)(5),  respectively,  such Member shall be specially allocated items of
Company  income  and gain in the amount of such  excess as quickly as  possible,
provided that any allocation under this SECTION 4.6(C) shall be made only if and
to the extent that a Member  would have a deficit  Capital  Account in excess of
such sum  after  all  allocations  provided  for in this  Article  IV have  been
tentatively made as if this SECTION 4.6(C) were not in this Agreement.

                  (d)  NONRECOURSE  DEDUCTIONS.  Any  item  of  Company  loss or
deduction (or expenditure  subject to Section  705(a)(2)(B) of the Code) that is
attributable to Member Nonrecourse Debt (within the meaning of the definition of
partner nonrecourse debt in Regulation Section 1.704-2(b)(4)) shall be specially
allocated to the Members in the manner in which they share the "economic risk of
loss" (as defined in  Regulation  Section  1.752-2) for such Member  Nonrecourse
Debt.  Any  nonrecourse  deductions,  within the meaning of  Regulation  Section
1.704-2(b)(1),  shall be specially  allocated among the Members in proportion to
their respective Capital Accounts.

                  (e) REGULATORY  ALLOCATIONS.  In the event an allocation is or
has been prevented or required pursuant to SECTIONS 4.6(A)-(D), above, the Board
subsequently  may  make  special  allocations  of Net  Profit  or Net  Loss  (or
individual items thereof) to the extent that, in its judgment,  such allocations
would  (i) be  respected  under  applicable  federal  income  tax law  and  (ii)
eliminate  as quickly as possible  the  difference  between  the actual  Capital
Account of each Member and the Capital Account such Member would have had in the
absence of such SECTIONS 4.6(A)-(D).

     4.7 CONFORMANCE  WITH THE CODE AND APPLICABLE  REGULATIONS.  It is intended
that SECTIONS 4.1, 4.2, 4.3, 4.4, 4.5 AND 4.6 of this Agreement be construed and
applied in a manner consistent with the requirements of Code Sections 704(b) and
704(c) and the Regulations.  If, in the opinion of the Company's accountant, the
manner in which SECTIONS 4.1, 4.2, 4.3, 4.4, 4.5 AND 4.6 of this Agreement apply
should be modified in order to comply with Code  Sections  704(b) and 704(c) and
the Regulations,  then,  notwithstanding  anything to the contrary  contained in
SECTIONS 4.1,  4.2, 4.3, 4.4, 4.5 AND 4.6, the method by which Capital  Accounts
are maintained shall be so modified;  PROVIDED,  HOWEVER, that any change in the
manner of maintaining  Capital  Accounts shall not materially alter the economic
agreement between and among the Members.

     4.8 DISTRIBUTIONS.

                  (a) Net cash flow, if any, shall be distributed to the Members
following  receipt by the Company of such cash. For this purpose,  the term "net
cash flow" means the gross cash proceeds of the Company less the portion thereof
used to pay or establish reserves for all Company expenses,  debt payments,  and
contingencies as determined by the Board; provided that any reserves aggregating
an amount in excess of  $3,000,000  at any time shall  require  unanimous  Board
approval.  All distributions of cash or other assets available for distribution,
from whatever  source  derived,  shall be paid or  distributed to the Members in
proportion  to  their  respective   positive  Capital  Account   balances.   Any
distributions  of  property  other  than cash shall be made at such times and in
such amounts as determined by the Board.  Immediately  prior to any distribution
under this SECTION 4.8, the Capital Accounts of the Members shall be adjusted as
provided  in  Regulation  Section  1.704-1(b)(2)(iv)(f).   Except  as  otherwise
provided  under the Act or in this  Agreement,  no Member  shall be  required to
restore to the Company any amounts  properly  distributed to it pursuant to this
SECTION 4.8(A).

                  (b) The Company shall withhold taxes from distributions to the
Members to the extent  required  by the Code or any other  applicable  law.  For
purposes  of  this  Agreement,   any  taxes  withheld  by  the  Company  from  a
distribution to any Member shall be deemed to be a cash  distribution or payment
to such Member,  and the amount otherwise  distributable to such Member pursuant
to this Agreement  shall be reduced by the taxes so withheld.  The  withholdings
referred  to in this  SECTION  4.8(B)  shall be made at the  maximum  applicable
statutory  rate  under the  applicable  tax law unless  the  Company  shall have
received an opinion of counsel or other evidence  satisfactory to the Board that
a lower rate is applicable or that no withholding is applicable.

     4.9 FISCAL YEAR; TAX DECISIONS.  The tax and fiscal  accounting year of the
Company shall end on the 31st day of December each year. The Board shall appoint
a "tax  matters  partner"  who shall  keep the  Members  fully  informed  of all
communications received from any taxing authority.

                                   ARTICLE V.

                                   MANAGEMENT

     5.1 THE BOARD OF DIRECTORS.  Except for situations in which the approval of
the  Members is  required by the Act or this  Agreement,  the  Company  shall be
managed and controlled by a board of directors (the "Board")  consisting of five
(5)  directors.  Three  (3)  directors  will  be  appointed  by CHD  and two (2)
directors  will be appointed by USAD.  Each director shall hold office until his
or her successor is appointed and qualified.  The initial directors appointed by
CHD shall be Robert A. Davies, III, Zvi Eiref and Mark G. Conish and the initial
directors  appointed by USAD shall be Uri Evan and a person to be  designated by
USAD on or prior to the Effective Date.  Either Member may replace its appointed
directors  by  sending  written  notice to the  Company  and the  other  Members
specifying the change.

     5.2. POWERS OF THE BOARD.  Subject to the limitations  imposed  pursuant to
the terms of this Agreement or by operation of law, the Board, by majority vote,
is  authorized  and empowered to carry out the purposes of the Company in taking
any of the actions  described in this SECTION 5.2 or otherwise  contemplated  by
the Act or this  Agreement.  In that  connection,  subject to the limitations of
this  Agreement,  the powers of the Board shall include,  but not be limited to,
the following:

                  (a)      To engage independent attorneys, accountants or such
other persons as may be deemed necessary or advisable;

                  (b) To implement all actions with respect to  distributions by
the  Company,  dispositions  of the assets of the  Company,  borrowing of funds,
execution of leases,  contracts,  bonds, guarantees,  notes, mortgages and other
instruments on behalf of the Company;

                  (c)      To open, maintain and close bank accounts and to draw
 checks and other orders for the payment of money;

                  (d) To make,  on behalf of the  Company,  all filings with the
Delaware Secretary of State as may be required or deemed desirable by the Board,
including  without  limitation,  filings to change the  registered  agent and/or
registered office of the Company;

                  (e) To take such other  actions and to incur such  expenses on
behalf of the Company as may be necessary or  advisable in  connection  with the
conduct of the affairs of the Company, including, without limitation, taking any
and all actions with respect to the operation of the Business; and

                  (f) To appoint such  officers  (including a general  manager),
managers and agents to operate and oversee the  day-to-day  business  affairs of
the Company or to implement any of the  foregoing  powers as may be necessary or
advisable;  PROVIDED  that all  such  officers,  managers  and  agents  shall be
directly employed by a Member or a subsidiary of a Member.

     5.3 DUTIES OF BOARD.  The Board shall manage,  or cause to be managed,  the
affairs of the Company in a prudent  and  businesslike  manner and shall  devote
such time to the  Company  affairs  as the  Board  determines  to be  reasonably
necessary for the conduct of such affairs.  Without  limiting the  generality of
the foregoing, the Board's duties shall include the following:

                  (a)      To render periodic progress reports to the Members
with respect to the operations of the Company;

                  (b)      To  deposit  all funds of the  Company  in one or
more  separate  bank  accounts  with  such  banks or trust companies as the
Board may designate;

                  (c)  To  maintain   complete  and  accurate   records  of  all
operations of the Company and to maintain accurate books of account  (containing
such information as shall be necessary to record  allocations and  distributions
of Company  items) and to make such records and books of account  available  for
inspection and audit by any Member or its duly authorized representative (at the
expense of such Member) during regular business hours at the principal office of
the Company;

                  (d)      To prepare and distribute to all Members, all reason-
able tax reporting information;

                  (e) To prepare and  distribute  to each Member,  all financial
and other  information  necessary  for such  Member to file all of its  required
public reports in a timely manner;

                  (f) To  cause  to be filed  such  certificates  and to do such
other acts as may be required by law to qualify  and  maintain  the Company as a
limited liability company under the Act; and

                  (g)      To make distributions of net cash flow pursuant to
SECTION 4.8.

     5.4 BOARD  MEETINGS.  Any  director  may call a meeting  of the Board  upon
written  notice at least five (5) business  days in advance of the meeting.  The
notice shall state the date,  time,  purpose(s) and place (which shall be in New
Jersey or New York City) of the  meeting.  Any  director  may waive  notice of a
meeting,  either before or after the meeting takes place. The Board may also act
by the unanimous written consent of all directors without a meeting.

     5.5 ACTIONS REQUIRING  UNANIMOUS BOARD CONSENT.  Notwithstanding  any other
provision of this Agreement to the contrary,  except with the unanimous  consent
of the Board, the Board shall not:

                  (a) increase advertising and slotting expense to a level which
would reasonably be expected to reduce the Company's operating profit below what
it was for the immediately preceding fiscal year;

                  (b)      accept from a Member allocated costs greater than
fifty percent (50%) of the rate of sales growth; or

                  (c)      make any material amendment to the USAD License or
the CHD License.

     5.6 LIABILITY AND INDEMNIFICATION OF BOARD.

                  (a) In carrying out their duties,  no director shall be liable
to the Company or to any of the Members for any actions  taken in good faith and
reasonably believed to be in the best interests of the Company, or for errors of
judgment, except as otherwise required by applicable law.

                  (b)  The  Company  shall  indemnify  and  hold  harmless  each
director  against any loss,  claim,  damage,  or expense,  including  reasonable
attorneys'  fees and costs  arising out of any claim,  demand,  suit,  or action
related to the performance or non-performance of any act concerning the business
or the  activities  of the  Company,  unless  such  director  is guilty of gross
negligence, gross misconduct, or willful malfeasance in connection therewith.

     5.7 APPARENT  AUTHORITY.  All third  parties  dealing with the Board or any
officer duly appointed by the Board may rely  conclusively upon any action taken
by the Board or such officer as having been taken on behalf of the Company.

     5.8  REIMBURSEMENT  FOR  EXPENSES.  Each  director  shall  be  entitled  to
reimbursement from the Company for (or to cause the Company to pay directly) all
expenses,  costs and fees incurred in connection  with the performance of his or
her duties hereunder.

                                   ARTICLE VI.

                            OPERATION OF THE BUSINESS

     6.1  MANUFACTURING.  Promptly  upon the Effective  Date,  each Member shall
provide the Company with all necessary  arrangements  as determined and required
by the Board to ensure  the  manufacture  and  production  of the CHD  Detergent
Products and the USAD Detergent  Products as specified below, which arrangements
shall include, among other matters:

                  (a)      CHD will manufacture heavy powder laundry detergent
products;

                  (b)      USAD will manufacture liquid and light powder laundry
 detergent and liquid fabric softener products;

                  (c)      Each of CHD and USAD will  manufacture,  package and
label  products to  specifications  established  by the Board;

                  (d) Each of CHD and USAD will at all times  have and  maintain
in  full  force  and  effect  all  permits   required  in  connection  with  its
manufacturing obligations hereunder;

                  (e) Each of CHD and USAD will,  at its own  expense,  make any
and  all  capital  improvements  to its  facilities  necessary  to  perform  its
manufacturing obligations as reasonably required by the Board, including without
limitation those improvements needed to increase capacity or enhance efficiency;
PROVIDED,  however,  that any such  improvements that require the expenditure by
either CHD or USAD of more than $5 million, in the aggregate, in a calendar year
shall require the unanimous approval of the Board; and

                  (f)      The Company will be charged for such services by CHD
 and USAD on the following basis:

                    (i)  all direct costs at the cost thereof,  with any dispute
                         to be resolved by the Company's auditors;

                    (ii) all fully dedicated costs at the cost thereof, with any
                         dispute to be resolved by the Board;

                    (iii)all  shared  costs by  appropriate  allocation  of such
                         costs  based  on  activity-based   costing  or  another
                         mutually  agreed  upon  basis,  with any  dispute to be
                         mutually agreed between CHD and USAD;

                    (iv) depreciation of capital  improvements  made pursuant to
                         SECTION  6.1(E),  above, as mutually agreed between the
                         Company  and CHD or USAD,  as the case may be, with any
                         dispute to be resolved by the Company's auditors; and

                    (v)  the Company shall not be charged for any  environmental
                         matters  (including,   without  limitation,   costs  of
                         remediation and fines)  associated with the manufacture
                         and  production of the CHD  Detergent  Products and the
                         USAD Detergent Products.

          6.2 DISTRIBUTION.

                  (a) Each of CHD and USAD  will  distribute  the CHD  Detergent
Products and the USAD Detergent  Products through their  respective  warehouses.
The  Company  shall  reimburse  each of CHD and USAD for the actual full cost of
storage,  handling and freight (including appropriate warehousing overhead) with
respect to the CHD Detergent Products and the USAD Detergent Products; PROVIDED,
HOWEVER,  that the  Company  shall not be liable for any profit  margin or other
overhead allocation.

                  (b) The  Company  shall,  upon  the  written  request  of CHD,
designate a Member to operate full service  warehouses at any location which CHD
deems necessary in order to optimize distribution of all CHD products other than
the CHD Detergent  Products (the "Other CHD  Products") or for customer  service
purposes.

                  (c) Each of CHD and USAD  will,  at its own  expense,  install
warehouse  and other  management  systems as  required  by the Board in order to
improve warehouse efficiency;  PROVIDED,  however, that any such installation or
system  that  requires  the  expenditure  by either  CHD or USAD of more than $1
million in a calendar year shall  require the  unanimous  approval of the Board.
Amortization of  expenditures  for new warehouse  systems  required by the Board
will be as agreed  between the Company and CHD or USAD, as the case may be, with
any dispute to be resolved by the  Company's  auditors.  The Company shall also,
upon the  written  request of CHD,  designate  a Member to operate  VMI or other
similar  customer  service  programs and install  warehouse and other management
systems which CHD believes necessary for efficient warehouse operation.

                  (d) In addition  to the CHD  Detergent  Products  and the USAD
Detergent Products, the Company shall, upon the written request of either CHD or
USAD,  designate a Member to distribute  all USAD  products  other than the USAD
Detergent  Products (the "Other USAD  Products") and Other CHD Products.  In any
such case,  the Company or  designated  Member shall provide CHD or USAD, as the
case may be, ***,  and the  requesting  Member  shall  reimburse  the Company or
designated  Member for the actual full cost for  storage,  handling  and freight
(including  appropriate  warehousing  overhead),  ***;  PROVIDED  that the total
amount shall not exceed ***.

                  (e) CHD and USAD shall,  to the extent  reasonably  necessary,
integrate  their MIS  logistics  functions  as  optimally  as  possible  for the
Company's  operations,  recognizing  that each of CHD and USAD desires to retain
separate logistical capabilities.

                  (f) USAD will be the  distributor  for USAD laundry  detergent
products  in  USAD's  Metro  business  as in  existence  from  time to time  and
internationally.  USAD and CHD will agree on transfer  pricing  with  respect to
such USAD Detergent Products in order to achieve a fair division of profits.

          6.3 SELLING, GENERAL & ADMINISTRATIVE FUNCTIONS.

                  (a) Except by Consent, the selling, general and administrative
("SG&A")  functions  of the Company  shall be  allocated  between the Members as
follows:

                    (i)  order processing, billing and collection,  logistics at
                         its plants and warehouses,  heavy powder  manufacturing
                         management,  general  accounting  and cash  management,
                         marketing  and  research and  development  shall be the
                         responsibility of CHD;

                    (ii) logistics at its plants and  warehouses  and liquid and
                         light  powder  manufacturing  management  shall  be the
                         responsibility of USAD; and

                    (iii)quality assurance and development  support shall be the
                         joint responsibility of CHD and USAD.

                  (b) The Company shall reimburse each of CHD and USAD for their
respective  direct costs  associated with providing the SG&A functions set forth
herein.  In the  event  that the  SG&A  services  are  dedicated  solely  to the
Business,  the  Company  shall  reimburse  the Member for the full cost of these
services.  In the event that the SG&A  services are shared  between the Business
and  either  Other CHD  Products  or Other  USAD  Products,  the  Company  shall
reimburse the Member for the fair allocation based on activity-based  costing or
another  mutually agreed upon basis. The Company shall in no event be liable for
indirect  costs,  such  as  general  management,   corporate  accounting,  human
resources and legal services,  unless otherwise agreed to by the Company through
a unanimous Board action.

                  (c) Each of CHD and USAD will  cause  certain  members  of its
sales force to be  dedicated  to the sale of the  Company's  products  and to be
compensated, at least in part, based on the success of those efforts. Subject to
the reasonable  approval of USAD, the Company shall, upon the written request of
CHD, require its dedicated sales  organization to coordinate its activities with
CHD's  personal  care sales  force and,  in  particular,  to use the same broker
organizations that CHD uses for the Other CHD Products.

                  (d) The Company shall,  upon the written  request of CHD, sell
all the Other CHD Products and shall, upon the written request of USAD, sell its
candle line to all  customers  and its cleaners  line to all non-food  customers
(i.e.,  drug and mass  merchandising  outlets);  PROVIDED that in all cases such
products meet the specified minimum volume levels  established by unanimous vote
of the Board. CHD and USAD shall reimburse the Company for these services at the
fully  allocated  cost,  which may be a percentage of sales or another  mutually
agreed upon basis.

     6.4 REVIEW  RIGHT.  Each Member shall have the right,  on not less than ten
(10)  business  days notice,  to review the books and records of the Company and
the other  Member  relating  to  product  sales and all  expenses  for which the
non-auditing Member is entitled to reimbursement and for other financial matters
relating to the business of the Company.  Any dispute relating to the results of
such review shall be resolved by the Company's auditors.

                                  ARTICLE VII.

                                     MEMBERS

     7.1 NO  PARTICIPATION  BY MEMBERS.  Except as  expressly  set forth in this
Agreement,  the Members  shall not have any vote or take any part in the control
or management of the day-to-day  business  affairs of the Company,  nor have any
authority  or  power  to act  for or on  behalf  of the  Company  in any  manner
whatsoever, other than as specifically required by the Act. No Member who is not
authorized  by the Board as an agent shall take any action to bind the  Company,
and each Member shall indemnify the Company for any costs or damages incurred by
the Company as a result of the unauthorized action of such Member.

     7.2 REQUIRED MEMBER CONSENTS.  Notwithstanding  any other provision of this
Agreement,  no  action  may be taken by the  Company  (whether  by the  Board or
otherwise) in connection  with any of the following  matters without the Consent
of the Members:

                  (a)      Any activity that is not consistent with the purpose
of the Company as set forth in SECTION 1.3 hereof;

                  (b)      A material change in the nature of the Business; and

                  (c)      Any transaction by the Company to merge or
consolidate  with another entity or to sell all or  substantially all of its
assets.

     7.3 LIMITED  LIABILITY.  No Member or director shall be obligated or liable
to the Company, any creditor of the Company or any other person, for any losses,
debts,  obligations or liabilities of the Company, except as otherwise agreed in
writing by such  Member or  director.  Except as  required  by law, no Member or
director  shall be liable to the Company,  the other  Members,  creditors of the
Company or any other  person for the  repayment  of  amounts  received  from the
Company  consistent  with the provisions  hereof.  The failure of the Company to
observe any formalities or  requirements  relating to the exercise of its powers
or management  of its business or affairs under this  Agreement or the Act shall
not be grounds for  imposing  personal  liability on the Members or any director
for liabilities of the Company.

     7.4  WITHDRAWAL.  No Member shall have the right to withdraw as a Member or
take any voluntary  unilateral  action that would result in a dissolution of the
Company except as expressly permitted by SECTION 10.1 hereof.

     7.5 REGULAR MEETINGS.  Regular meetings of the Members may be held upon two
weeks  notice by the Board or  without  notice at such time and at such place as
shall from time to time be  Consented  to by the  Members.  The Company may, but
shall not be required to, hold an annual meeting of the Members.

     7.6 SPECIAL MEETINGS.  Special meetings of the Members,  for any purpose or
purposes,  unless otherwise prescribed by statute, may be called by the Board or
any Member.

     7.7 PLACE OF MEETINGS. The Board or Members may designate any place, either
within or outside the State of Delaware, as the place of meeting for any meeting
of the Members.

     7.8 NOTICE OF MEETINGS.  Except as provided in SECTION 7.9,  written notice
stating the place, day and hour of a special meeting and the purpose or purposes
for which the meeting is called  shall be  delivered  not less than ten (10) nor
more  than  fifty  (50)  days  before  the  date of a  special  meeting,  either
personally or by mail, by or at the direction of the Board or the Member calling
the meeting, to each Member entitled to vote at such meeting.

     7.9 MEETING OF ALL  MEMBERS.  If all of the Members  shall meet at any time
and place,  either within or outside of the State of Delaware,  and  unanimously
agree to the holding of a meeting at such time and place,  such meeting shall be
valid without call or notice, and at such meeting lawful action may be taken.

     7.10 RECORD DATE. For the purpose of determining Members entitled to notice
of or to vote at any meeting of Members or any adjournment  thereof,  or Members
entitled  to  receive  payment  of  any  distribution,  or in  order  to  make a
determination of Members for any other purpose,  the date on which notice of the
meeting  is  mailed  or  the  date  on  which  the  resolution   declaring  such
distribution  is adopted,  as the case may be, shall be the record date for such
determination  of Members.  When a determination  of Members entitled to vote at
any  meeting of Members has been made as provided  in this  SECTION  7.10,  such
determination shall apply to any adjournment thereof.

     7.11 QUORUM.  Members holding all of the outstanding  Ownership  Interests,
represented in person or by proxy,  shall  constitute a quorum at any meeting of
Members (a "Quorum"). In the absence of a Quorum at any such meeting, any Member
may adjourn the meeting  from time to time for a period not to exceed sixty (60)
days without further notice.  However, if the adjournment is for more than sixty
(60)  days,  or if after  the  adjournment  a new  record  date is fixed for the
adjourned  meeting,  a notice of the  adjourned  meeting  shall be given to each
Member of record entitled to vote at the meeting.  At such adjourned  meeting at
which a Quorum shall be present or  represented,  any business may be transacted
which might have been transacted at the meeting as originally noticed.

     7.12 MANNER OF ACTING.  With  respect to any matter to be acted upon by the
Members, the Members must act by Consent.

     7.13 PROXIES. At all meetings of Members, a Member may vote in person or by
proxy   executed   in   writing   by  the   Member  or  by  a  duly   authorized
attorney-in-fact. Such proxy shall be filed with the Board before or at the time
of the  meeting.  No proxy shall be valid after eleven (11) months from the date
of its execution, unless otherwise expressly provided in the proxy.

     7.14 ACTION BY MEMBERS  WITHOUT A MEETING.  Action required or permitted to
be taken at a meeting of Members may be taken without a meeting if the action is
evidenced by one or more written consents describing the action taken, signed by
all of the Members  entitled to vote and  delivered to the Company for inclusion
in the minutes or for filing with the Company  records.  Action taken under this
SECTION 7.14 is effective  when all of the Members  entitled to vote have signed
the consent, unless the consent specifies a different effective date. The record
date for determining  Members entitled to take action without a meeting shall be
the date the first Member signs a written consent.

     7.15  WAIVER OF  NOTICE.  When any  notice is  required  to be given to any
Member,  a waiver  thereof  in  writing  signed by or on  behalf  of the  Member
entitled to such notice,  whether before,  at, or after the time stated therein,
shall be equivalent to the giving of such notice.

                                  ARTICLE VIII.

                    OTHER BUSINESS ACTIVITIES OF THE MEMBERS

     8.1 COMPETITIVE  ACTIVITIES.  Neither this Agreement,  nor the existence of
the  Company,  nor any activity  undertaken  pursuant  hereto and in  compliance
herewith shall prevent or restrict the  investment or other business  activities
of any Member apart from the Company,  nor shall the Company or any other Member
or director  have any right,  by virtue of this  Agreement  or the  existence or
operation of the Company,  to participate  in, or to receive the benefits of any
such activities.  Notwithstanding the foregoing, however, a Member shall neither
directly  nor  indirectly  compete,  or invest in an entity or activity  that is
competitive, with the Company and the Business.

     8.2 INTERESTED PARTY  TRANSACTIONS.  No future transaction between a Member
or director  and the Company  shall be voidable  solely  because  such Member or
director has a direct or indirect interest in the transaction if either: (a) the
transaction  is fair to the Company as  determined  by  unanimous  action of the
Board; or (b) the Members knowing the material facts of the transaction and such
Member's or director's interest, Consent to the transaction.

                                   ARTICLE IX.

               ASSIGNMENT OF INTERESTS, ADMISSION OF NEW MEMBERS,
                     PURCHASE OPTIONS AND CHANGE OF CONTROL

     9.1 TRANSFER OF A MEMBER'S  INTEREST.  The Ownership Interest of any Member
cannot be Transferred unless the Members Consent to such Transfer. Any attempted
Transfer of any such Ownership Interest without compliance with this SECTION 9.1
shall be void and of no effect,  and the Company  shall not  recognize  any such
attempted Transfer for any purpose.  "Transfer" as used herein shall include any
sale, assignment, mortgage, hypothecation,  gift, grant or transfer of any kind,
whether  voluntary  or  involuntary,  by  bankruptcy  or  operation  of  law  or
otherwise,  or the creation of any agreement  pursuant to which any person shall
have any  interest in the Company or in the  distributions  with respect to such
interest.  Notwithstanding the foregoing, (a) CHD shall be permitted to transfer
its Ownership  Interest in connection with a sale of all or substantially all of
its consumer  products  business,  and (b) USAD shall be permitted to (i) pledge
its Ownership Interest to its principal commercial lender, and (ii) transfer its
Ownership  Interest in connection with a sale of all or substantially all of its
assets.

     9.2  ADMISSION OF ADDITIONAL  MEMBERS.  No person shall have any right as a
Member of the Company unless and until such person is admitted as a Member after
such approval as is required by, and in compliance with the other conditions set
forth in, this  SECTION  9.2. A new Member may be  admitted to the Company  only
with the Consent of the Members  and only if such person  shall have  executed a
counterpart of this Agreement or an appropriate  supplement to it, in which such
person agrees to be bound by the terms and  provisions of this Agreement as they
may be modified by that  supplement.  Any person so admitted  shall have all the
rights and obligations of a Member hereunder  effective on and after the date of
admission as a Member of the Company.

     9.3  INTEREST  OF A NEW  MEMBER.  Upon  receipt  of  any  required  Capital
Contribution from any newly admitted Member, such Member's Capital  Contribution
and Ownership  Interest in the Company shall be set forth on an amended schedule
maintained by the Board.

     9.4 OPTIONS TO PURCHASE.

                  (a) CHD is hereby granted the option to purchase all of USAD's
Ownership  Interests and any or all of USAD's assets and properties  used in the
Business  (including,  without limitation,  all plant,  equipment and warehouses
(whether  leased or owned)  and all  intellectual  property  covered by the USAD
License)  (collectively,  the "USAD  Assets")  for an aggregate  purchase  price
determined in accordance  with the USAD Appraisal  Procedure (as defined below).
In the event that any USAD Assets are joint use assets used for USAD  businesses
other than the Business, the parties shall negotiate in good faith to enter into
such  agreements  as  may be  reasonably  necessary  to  ensure  an  appropriate
transition  period.  For the purposes of this Agreement the term "USAD Appraisal
Procedure"  shall mean 6.5 times the sum of (i) USAD's average annual Net Profit
from the  Company  for the eight most recent  fiscal  quarters  plus (ii) USAD's
average annual  depreciation  and  amortization  charged to the Company for such
eight quarters as part of manufacturing  and  distribution  costs. An example of
the operation of the USAD Appraisal  Procedure is set forth on EXHIBIT C hereto.
This option is exercisable by CHD at any time after the earliest to occur of the
following:

                    (x) The fifth (5th) anniversary of the Effective Date;

                    (y)  Delivery  to the  Company of a  Termination  Notice (as
                         defined in SECTION 10.1 below) by USAD;  PROVIDED  that
                         this option to purchase is exercised within one hundred
                         eighty (180) days thereafter; and

                    (z)  The  bankruptcy or  insolvency  of USAD;  PROVIDED that
                         this option to purchase is exercised within one hundred
                         eighty (180) days thereafter.

                  (b)  USAD  will not take any  actions  inconsistent  with,  or
otherwise  impair or impede in any way, CHD's option to purchase as set forth in
Section 9.4(a);  it being  understood that the submission or  recommendation  to
USAD's  stockholders of a tender offer or other similar proposal to acquire USAD
stock,  at any time prior to the exercise by CHD of such option to purchase,  in
all  instances  consistent  with the exercise by the  directors of USAD of their
fiduciary duties and responsibilities, shall not be construed to be in violation
of this  Section  9.4(b);  it  being  further  understood  and  agreed  that the
foregoing  shall not be construed  to enable the  directors of USAD to modify or
otherwise recommend against the USAD Appraisal Procedure, as a business deal, to
the extent the option to purchase is exercised by CHD. Subject to the foregoing,
 . USAD will take all  actions  that may be  necessary  on its part to ensure the
right of CHD to  exercise  the option to  purchase,  including  recommending  to
USAD's stockholders, if stockholder approval is necessary, that they approve the
consummation  of the  purchase  transaction  resulting  from the exercise of the
option to purchase.  CHD will be entitled to the remedy of specific  performance
with respect to its rights contained in Section 9.4 (b).

                  (c) USAD is  hereby  granted  the  option  to  require  CHD to
purchase  all of  USAD's  Ownership  Interests  and  all of  USAD's  assets  and
properties used in the Business (including, without limitation, all intellectual
property covered by the USAD License) for an aggregate purchase price determined
in  accordance  with the USAD  Appraisal  Procedure  at any time after the tenth
(10th) anniversary of the Effective Date.

                  (d) USAD is hereby granted the option to purchase all of CHD's
Ownership  Interests and all of CHD's assets and properties used in the Business
(including,  without  limitation,  all plant,  equipment and warehouses (whether
leased or owned) and all intellectual  property covered by the CHD License,  but
excluding CHD's mining operation  located in Green River,  Wyoming and excluding
the Arm & Hammer name, brand and trademark) (collectively, the "CHD Assets") for
an aggregate  purchase  price  determined in  accordance  with the CHD Appraisal
Procedure.  In the event that any CHD  Assets are joint use assets  used for CHD
businesses other than the Business, the parties shall negotiate in good faith to
enter  into  such  agreements  as may  be  reasonably  necessary  to  ensure  an
appropriate transition period. For the purposes of this Agreement, the term "CHD
Appraisal  Procedure")  shall mean 6.5 times the sum of (i) CHD's average annual
Net Profit from the Company for the eight most recent fiscal quarters,  less the
Net Profit  contribution  attributed to the excluded  assets  referred to in the
foregoing  parenthetical of this Section 9.4(d),  plus (ii) CHD's average annual
depreciation and amortization  charged to the Company for such eight quarters as
part of manufacturing and distribution costs. This option is exercisable by USAD
at any time after the earlier to occur of the following:

                    (i)  Delivery  to the  Company of a  Termination  Notice (as
                         defined in SECTION  10.1 below) by CHD;  provided  that
                         this option to purchase is exercised within one hundred
                         eighty (180) days thereafter; and

                    (ii) The bankruptcy or insolvency of CHD; PROVIDED that this
                         option to  purchase  is  exercised  within one  hundred
                         eighty (180) days thereafter.

                  (e) If,  following  the exercise of CHD's option  contained in
SECTION  9.4(a),  it is determined  that the approval of USAD's  stockholders is
required  in order to  complete  the  transaction  and if such  approval  is not
obtained, then the following shall apply:

                    (i)  SECTION  9.4(c) shall cease to have any effect and will
                         be deemed to be deleted from this Agreement; and

                    (ii) CHD  will  have the  right,  on six (6)  months'  prior
                         notice  to the  Company  and USAD,  to  cancel  the CHD
                         License with  respect to the Arm & Hammer  name,  brand
                         and trademark.

                  (e) USAD hereby  grants to CHD a security  interest in all the
assets  and  properties  covered by the option  contained  in SECTION  9.4(A) as
security for USAD's  obligations  thereunder,  and USAD agrees to cooperate with
CHD such that all documentation needed to perfect such security interest will be
in place within ninety (90) days after the date hereof.  The foregoing  security
interest shall be expressly  subject and  subordinate to all security  interests
held by Finova Capital Corporation,  as agent (the "Agent"),  for itself and for
the other lenders under USAD's existing credit  facility.  USAD may grant to the
Agent a security interest in USAD's interest in the receivables and inventory of
the Company.

     9.5 CHANGE OF CONTROL.

                  (a)      As used herein "Change of Control" shall mean the
occurrence of any of the following events:

                    (i)  any  "person"  (as such term is used in Sections  13(d)
                         and 14(d) of the  Securities  Exchange Act of 1934,  as
                         amended)  other  than a Member  or any  affiliate  of a
                         Member being the "beneficial owner" (as defined in Rule
                         13d-3  under  said Act),  directly  or  indirectly,  of
                         securities  of CHD or USAD  constituting  fifty percent
                         (50%) or more of the total voting power  represented by
                         CHD's or USAD's then outstanding voting securities; or

                    (ii) a merger or consolidation of USAD or CHD with any other
                         corporation, other than a merger or consolidation which
                         would  result in the  voting  securities  of such party
                         outstanding  immediately  prior  thereto  continuing to
                         represent (either by remaining  outstanding or by being
                         converted  into  voting  securities  of  the  surviving
                         entity)  at least  fifty  percent  (50%)  of the  total
                         voting power  represented  by the voting  securities of
                         such  party  or  such  surviving   entity   outstanding
                         immediately after such merger or consolidation;  or the
                         adoption of a plan of complete  liquidation or the sale
                         or disposition by USAD or CHD of at least fifty percent
                         (50%) or more of such party's assets.

                  (b) If,  between the date hereof and the  Trigger  Date,  USAD
becomes  subject to a Change of Control,  then this Agreement will terminate and
USAD will forthwith pay to CHD a fee of Ten Million Dollars ($10,000,000).

                  (c) If,  between  the date hereof and the  Trigger  Date,  CHD
becomes  subject to a Change of Control,  then this Agreement will terminate and
CHD will forthwith pay to USAD a fee of Three Million Dollars ($3,000,000).

                  (d) If,  between  the  Trigger  Date  and July 1,  2001,  USAD
becomes  subject  to a  Change  of  Control,  then CHD  will  have  the  option,
exercisable  at any time  within  thirty  (30) days  after the Change of Control
occurs,  to terminate  this Agreement and all of the  transactions  contemplated
hereby and receive from USAD a fee of Ten Million Dollars ($10,000,000).

                  (e) If, between the Trigger Date and July 1, 2001, CHD becomes
subject to a Change of Control,  then USAD will have the option,  exercisable at
any time  within  thirty  (30) days  after  the  Change of  Control  occurs,  to
terminate this  Agreement and all of the  transactions  contemplated  hereby and
receive from CHD a fee of Three Million Dollars ($3,000,000).

                  (f) If  either  CHD or USAD  becomes  subject  to a Change  of
Control  (either  before  or  after  July 1,  2001)  and this  Agreement  is not
terminated pursuant to paragraphs (d) or (e), above, the following shall apply:

                    (i)  This  Agreement  and the other  agreements  referred to
                         herein shall not terminate  but shall  continue in full
                         force and effect and be binding  upon any  successor to
                         the party  subject to such Change of Control  (the "COC
                         Party"); and

                    (ii) Neither the COC Party nor any such  successor  shall be
                         entitled to deliver a Termination Notice.

                                   ARTICLE X.

                   DISSOLUTION AND TERMINATION OF THE COMPANY

     10.1 EVENTS CAUSING  DISSOLUTION.  Notwithstanding  any other  provision of
this  Agreement,  the Company  shall be dissolved and its  properties  and other
assets liquidated and the proceeds therefrom distributed in the manner and order
provided  for in  SECTION  10.2  upon  the  first  to  occur  of any  one of the
following:

                  (a) each anniversary of the Effective Date commencing with the
sixth (6th) anniversary; PROVIDED that (i) a Member has delivered to the Company
a written  notice of  termination  (a  "Termination  Notice")  at least nine (9)
months prior to such anniversary and (ii) the option to purchase,  under SECTION
9.4 hereof,  has not been exercised  within one hundred eighty (180) days of the
delivery of the Termination Notice;

                  (b)      the Consent of the Members; or

                  (c) the  bankruptcy or  dissolution  of any Member;  PROVIDED,
HOWEVER,  that  neither of such events  shall cause  dissolution  of the Company
unless  within  ninety (90) days after such event the  Members  Consent to treat
such event as a dissociation and dissolve the Company.

     10.2 DISTRIBUTION ON TERMINATION. Upon a dissolution and termination of the
Company,  the person appointed for such purpose by the Board (the  "Liquidator")
shall  collect  and  marshal  the  Company's  assets;  sell such  assets as such
Liquidator shall deem appropriate; provide for the payment of all of the legally
enforceable  obligations  of the  Company  that are not then  due;  provide  the
Members adequate time to arrange for alternative  production  facilities (but in
no event longer than six (6) months);  and distribute the proceeds and all other
assets of the Company in the following order:

                  (a) First, in payment of debts, obligations and liabilities of
 the Company which are then outstanding;

                  (b)  Second,  at  the  discretion  of the  Liquidator,  to the
setting up of any reserves which the Liquidator may deem necessary,  appropriate
or desirable for any contingent or unforeseen  liabilities or obligations or for
debts or  liabilities  of the Company (and, at the  expiration of such period as
the  Liquidator  shall deem  necessary,  advisable or  desirable  to  accomplish
payment of any such  obligations,  the Liquidator shall distribute the remaining
reserves in the manner hereinafter provided); and

                  (c) Third,  to the Members in an amount  equal to the positive
balances in their respective Capital Accounts,  after adjusting such Accounts to
reflect  the  allocations  of items of profit and loss under  ARTICLE IV of this
Agreement and any gain or loss which would be recognized if the Company sold its
remaining  assets at their fair market value on the date of  dissolution  of the
Company  and  allocated  each  item of gain or loss in the  manner  set forth in
ARTICLE IV.

     10.3  AUTHORITY  OF  THE  LIQUIDATOR.   In  carrying  out  the  liquidation
proceedings,  the Liquidator shall have all of the powers and authority provided
to the Board or the  Members  acting by  Consent,  and shall be  entitled to the
benefits of limitation of liability  and  indemnification  provided to the Board
and Members in this Agreement.

     10.4  LIQUIDATION  STATEMENT.  Each  of the  Board  and  Members  shall  be
furnished with a statement prepared by the Liquidator, which shall set forth the
assets and  liabilities  of the Company as of the date of complete  liquidation.
Upon the Company complying with the foregoing distribution plan, the Members, if
any, shall cease to be such, and the Liquidator  shall execute,  acknowledge and
cause to be filed such  appropriate  documents  evidencing the  dissolution  and
winding up of the Company  within ninety (90) days  following the  completion of
the distribution of the Company's property as provided in SECTION 10.2 hereof.

                                   ARTICLE XI.

                               GENERAL PROVISIONS

     11.1 DISPUTE RESOLUTION.

                  (a) With the exception of accounting disputes,  which shall be
resolved by the Company's  auditors,  any and all disputes  between or among the
Board and the Members or between  the Members  arising out of or relating in any
way to this  Agreement  (other  than  claims for  equitable  relief,  including,
without limitation,  specific performance and injunctive remedies,  which may be
pursued in any court having  jurisdiction)  shall be finally  settled by binding
arbitration conducted in accordance with the commercial arbitration rules of the
American  Arbitration  Association,  or any similar  successor  body. Each party
shall appoint one arbitrator, and the two arbitrators so appointed shall attempt
to agree upon a third arbitrator to act as chairman. If a party fails to appoint
an  arbitrator  within  thirty  (30) days from the date on which the  claimant's
request for arbitration has been  communicated to the other party or, if the two
arbitrators  fail to nominate the chairman within thirty (30) days from the date
of appointment  of the later  appointed  arbitrator,  such  arbitrator  shall be
selected by the American Arbitration Association or successor body.

                  (b) The award of the  arbitrators  shall  include  an award of
attorney's fees and costs to the prevailing  party (i.e., the party most closely
achieving its desired  result),  and shall be final.  The parties agree to waive
their right to any form of appeal, to the greatest extent allowed by law, and to
share equally the fees and expenses of the arbitrators.  Judgment upon any award
of  the  arbitrators  may  be  entered  in  any  court  having  jurisdiction  or
application  may be made to such court for the judicial  acceptance of the award
and for order of enforcement.  Such  arbitration  shall be held in New Jersey or
such other place as the parties to such arbitration may agree.

     11.2 FURTHER  ASSURANCES.  The Members  agree to execute and deliver to the
Company upon  request,  any and all  additional  certificates,  instruments  and
advice  necessary  to be filed,  recorded or  delivered  in order to perfect the
formation,  operation,  termination and dissolution of the Company in accordance
with  this  Agreement,  and  to  amend,  supplement  and  cancel  the  Company's
Certificate of Formation as required to carry out any of the foregoing.

     11.3  AMENDMENTS.  This  Agreement  may be amended at any time by a written
amendment signed by all of the Members.

     11.4  NOTICES.  Any  written  notice  to  any of the  Members  required  or
permitted  under this Agreement  shall be deemed to have been duly given for all
purposes (a) on the date of delivery, if delivered personally on the party or by
confirmed  facsimile  transmission,  or (b)  on the  third  business  day  after
mailing,  whether or not the same is actually received, if sent by United States
registered mail, return receipt requested, postage prepaid, and addressed to the
addressee at the address  stated below such  addressee's  name on the  signature
pages hereto, or at the most recent address,  specified by written notice, given
to the sender by any  addressee  under this  provision.  Notices to the  Company
shall be given in the same manner and shall be addressed to it at its  principal
place of business with a copy to each Member.

     11.5  INCORPORATION  BY  REFERENCE.  The  recitals  and  schedules  to this
Agreement are hereby  incorporated herein by this reference as if set forth here
in full.

     11.6 SEVERABILITY.  If any term, provision,  agreement or condition of this
Agreement is held by a court of competent  jurisdiction to be invalid,  void, or
unenforceable,  then such provision, agreement or condition shall be enforced to
the maximum extent  legally  permissible,  and the rest of this Agreement  shall
remain in full  force and effect and shall in no way be  affected,  impaired  or
invalidated.

     11.7 GOVERNING  LAW. This  Agreement  shall be governed by and construed in
accordance with the internal laws of the State of New York, without reference to
any conflicts of laws principles.

     11.8  SUCCESSORS.  This  Agreement  shall be  binding  on and  inure to the
benefit  of  the  respective   successors,   permitted  assigns,   and  personal
representatives of the Members and parties hereto.

     11.9 THIRD PARTY  BENEFICIARIES.  This  Agreement is not intended to create
any rights or  remedies  in favor of any person who is not a  signatory  to this
Agreement or in any way create any third party  beneficiary  rights or remedies,
including (except as specifically  provided to the contrary herein) on behalf of
any transferee.

     11.10 COMPANY ACCOUNTANT.  If the Company's independent  accounting firm is
the same as the firm  utilized  by any  Member,  the  partner  in  charge of the
Company's account shall not provide services to any Member.

     11.11 MEMBER'S BOOKS AND RECORDS.  Each Member agrees to maintain  complete
and accurate records of all operations  pertaining to its obligations under this
Agreement and to maintain  accurate books of account with respect thereto.  Each
Member agrees to make such records and books of account available for inspection
and  audit  by  the  Company  or  any  other  Member  or  its  duly   authorized
representative (at the expense of the Company or such Member).

     11.12  COUNTERPARTS.  The Members may execute this Agreement in one or more
counterparts, which shall, in the aggregate, constitute one instrument.

                        [The remainder of this page has been  intentionally left
blank; signature page follows.]

<PAGE>

         IN WITNESS  WHEREOF,  this  Agreement  has been executed by each of the
parties as of the date first set forth above.

                                                                     Armus, LLC,
                                            a Delaware limited liability company

                                                  /S/ ROBERT A. DAVIES, III
                                               ---------------------------------
                                               Robert A. Davies, III, Director

                                                  /S/    ZVI EIREF
                                                --------------------------------
                                                Zvi Eiref, Director

                                                  /S/ MARK G. CONISH
                                                --------------------------------
                                                Mark G. Conish, Director

                                                  /S/    URI EVAN
                                                --------------------------------
                                                Uri Evan, Director

<PAGE>

                                Members:

                                Church & Dwight Co., Inc.,
                                a Delaware corporation

                                TIN#:    13-4996950

                                By:    /S/    ROBERT A. DAVIES, III
                                       ----------------------------
                                Name:  ROBERT A. DAVIES, III
                                Title: CHIEF EXECUTIVE OFFICER

                                469 North Harrison Street
                                Princeton, NJ 08543-5297
                                Telecopy No.: (609) 497-7177

with copies to:                 Gibson, Dunn & Crutcher
                                4 Park Plaza
                                Irvine, California 92714
                                Attention:  Ronald S. Beard, Esq.
                                Telecopy No.: (949) 475-4730

                                USA Detergents, Inc.,
                                a Delaware corporation

                                TIN#:    11-2935430

                                By:    /S/ URI M. EVAN
                                       ----------------------------
                                Name:  Uri M. Evan
                                Title: Chief Executive Officer

                                1735 Jersey Avenue
                                North Brunswick, NJ 08902
                                Attn: Chief Executive Officer
                                Telecopy No.: (732) 246-8833

with copies to:                 Fulbright & Jaworski L.L.P.
                                666 Fifth Avenue
                                New York, NY  10103
                                Attn: Sheldon G. Nussbaum
                                Telecopy No.: (212) 318-3400

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]