UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(MarkOne)☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

ForthefiscalyearendedAugust31,2017

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Forthetransitionperiodfromto.

CommissionFileNumber:000-06936

WD-40 COMPANY(Exactnameofregistrantasspecifiedinitscharter)

Delaware 95-1797918(Stateorotherjurisdiction

ofincorporationororganization)(I.R.S.EmployerIdentificationNo.)

9715 Businesspark Avenue , San Diego, California 92131(Addressofprincipalexecutiveoffices) (Zipcode)

Registrant’stelephonenumber,includingareacode:(619) 275-1400

SecuritiesregisteredpursuanttoSection12(b)oftheAct:Titleofeachclass Nameofeachexchangeonwhichregistered

CommonStock,$0.001parvalue TheNASDAQStockMarket,LLC

SecuritiesregisteredpursuanttoSection12(g)oftheAct:

Titleofeachclass

None

Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.

Yes☑No☐

IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.

Yes☐No☑

Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.

Yes☑No☐

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

IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-Kisnotcontainedherein,andwillnotbecontained,tothebestofregistrant’sknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinPartIIIofthisForm10-KoranyamendmenttothisForm10-K.☑

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,orasmallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler”,“acceleratedfiler”,“smallerreportingcompany”,and“emerginggrowthcompany”inRule12b-2oftheExchangeAct.

Largeacceleratedfiler☑Acceleratedfiler☐Non-acceleratedfiler☐Smallerreportingcompany☐Emerginggrowthcompany☐

Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).

Yes☐No☑

Theaggregatemarketvalue(closingprice)ofthevotingstockheldbynon-affiliatesoftheregistrantasofFebruary28,2017wasapproximately$1,490,334,448.

AsofOctober18,2017,therewere13,964,343sharesoftheregistrant’scommonstockoutstanding.

Documents Incorporated by Reference:

TheProxyStatementfortheannualmeetingofstockholdersonDecember12,2017isincorporatedbyreferenceintoPartIII,Items10through14ofthisAnnualReportonForm10-K.

WD-40 COMPANY

ANNUAL REPORT ON FORM 10-KFor the Fiscal Year Ended August 31, 2017

TABLE OF CONTENTS

PART I Page

Item1. Business 1Item1A. RiskFactors 5Item1B. UnresolvedStaffComments 14Item2. Properties 14Item3. LegalProceedings 14Item4. MineSafetyDisclosures 14

PART II

Item5. MarketforRegistrant’sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities 16Item6. SelectedFinancialData 17Item7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 17Item7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 39Item8. FinancialStatementsandSupplementaryData 40Item9. ChangesinandDisagreementsWithAccountantsonAccountingandFinancialDisclosure 40Item9A. ControlsandProcedures 40Item9B. OtherInformation 41

PART III

Item10. Directors,ExecutiveOfficersandCorporateGovernance 41Item11. ExecutiveCompensation 41Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 42Item13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence 42Item14. PrincipalAccountantFeesandServices 42

PART IV

Item15. Exhibits,FinancialStatementSchedules 43Item16. Form10-KSummary 44

PART I

Forward-Looking Statements

ThisAnnualReportonForm10-Kcontainsforward-lookingstatementswithinthe“safeharbor”provisionsofthePrivateSecuritiesLitigationReformActof1995.Allstatementsotherthanthosethatarepurelyhistoricalareforward-lookingstatementswhichreflecttheCompany’scurrentviewswithrespecttofutureeventsandfinancialperformance.

These forward-looking statements include, but are not limited to, discussions about future financial and operating results, including: growth expectations for maintenanceproducts;expectedlevelsofpromotionalandadvertisingspending;plansforandsuccessofproductinnovation,theimpactofnewproductintroductionsonthegrowthofsales;anticipated results fromproduct line extension sales; and forecasted foreign currency exchange rates and commodity prices. These forward-looking statements are generallyidentified with words such as “believe,” “expect,” “intend,” “plan,” “could,” “may,” “aim,” “anticipate,” “estimate” and similar expressions. The Company undertakes noobligationtoreviseorupdateanyforwardlookingstatements.

Actualeventsorresultsmaydiffermateriallyfromthoseprojectedinforward-lookingstatementsduetovariousfactors,including,butnotlimitedto,thoseidentifiedinItem1Aofthisreport.Asusedinthisreport,theterms“we,”“our,”“us”and“theCompany”refertoWD-40Companyanditswholly-ownedsubsidiaries,unlessthecontextsuggestsotherwise.Amountsandpercentagesintablesanddiscussionsmaynottotalduetorounding.

Item 1 . Business

Overview

WD-40 Company is a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops,factoriesandhomesaroundtheworld.TheCompanywasfoundedin1953andisheadquarteredinSanDiego,California.

Formorethanfourdecades, theCompanysoldonlyoneproduct, WD-40® Multi-UseProduct, amaintenanceproduct whichactsasalubricant, rust preventative, penetrant,cleanerandmoisturedisplacer. Overthelast twodecades, theCompanyhasevolvedandexpandeditsproductofferingsthroughbothresearchanddevelopmentactivitiesandthroughtheacquisitionofseveralbrandsworldwide.Asaresult,theCompanyhasbuiltafamilyofbrandsandproductlinesthatdeliverhighqualityperformanceatanextremelygoodvaluetoitsendusers.

TheCompanycurrentlymarketsandsellsitsproductsinmorethan176countriesandterritoriesworldwideprimarilythroughmassretailandhomecenterstores,warehouseclubstores,grocerystores,hardwarestores,automotivepartsoutlets,sportretailers,independentbikedealers,onlineretailersandindustrialdistributorsandsuppliers.

The Company’s sales come from its two product groups – maintenance products and homecare and cleaning products. Maintenance products are sold worldwide in marketsthroughoutNorth,Central andSouthAmerica, Asia, Australia, Europe,theMiddleEastandAfrica. HomecareandcleaningproductsaresoldprimarilyinNorthAmerica, theUnitedKingdom(“U.K.”)andAustralia.

TheCompany’sstrategicinitiativesandtheareaswhereitwillcontinuetofocusitstime,talentandresourcesinfutureperiodsinclude:(i)maximizingWD-40Multi-UseProductsales through geographic expansion and increased market penetration; (ii) leveraging the WD-40 brand by growing the WD-40 Specialist product line; (iii) leveraging thestrengthsoftheCompanythroughbroadenedproductandrevenuebase;(iv)attracting,developingandretainingtalentedpeople;and(v)operatingwithexcellence.

TheprincipaldriveroftheCompany’sgrowthcontinuestobetakingtheCompany’sflagshipproduct,WD-40Multi-UseProduct,tonewusersinglobalmarkets.TheCompanyisfocusedonandcommittedtoinnovationandrenovationofitsproducts.TheCompanyseesinnovationandrenovationasimportantfactorstothelong-termgrowthofitsbrandsandproductlines,anditintendstocontinuetoworkonfutureproducts,productlines,productpackaging,productdeliverysystemsandpromotionalinnovationsandrenovations.The Company is also focused on expanding its current brands in existing markets with new product development. The Company’s product development teams support newproductdevelopmentandcurrentproductimprovementfortheCompany’sbrands.Overtheyears,theCompany’sresearchanddevelopmentteamhasmadeaninnovationimpactonmostoftheCompany’sbrands.KeyinnovationsfortheCompany’sproductsinclude,butarenotlimitedto,WD-40EZReachFlexibleStraw,WD-40SmartStraw®,WD-40TriggerPro®,WD-40Specialist®,WD-40Bike™,and3-IN-ONEProfessionalGarageDoorLube™.

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Financial Information about Operating Segments

TheCompany’soperatingsegmentsaredeterminedconsistentwiththewaymanagementorganizesandevaluatesfinancialinformationinternallyformakingoperatingdecisionsandassessingperformance.TheCompanyisorganizedonthebasisofgeographicalareaintothefollowingthreesegments:

· AmericassegmentconsistsoftheUnitedStates(“U.S.”),CanadaandLatinAmerica;· Europe,MiddleEastandAfrica(“EMEA”)segmentconsistsofcountriesinEurope,theMiddleEast,AfricaandIndia;and· Asia-PacificsegmentconsistsofAustralia,ChinaandothercountriesintheAsiaregion.

TheCompany’s management reviewsproduct performanceonthebasis of sales, whichcomefromits twoproduct groups–maintenance products andhomecare andcleaningproducts.ThefinancialinformationrequiredbyoperatingsegmentisincludedinNote15–BusinessSegmentsandForeignOperationsoftheCompany’sconsolidatedfinancialstatements,includedinItem15ofthisreport,andin“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”,includedinItem7ofthisreport.

Products

MaintenanceProducts

Included in the Company’s maintenance products are both multi-purpose maintenance products and specialty maintenance products. These maintenance products are soldworldwideandtheyprovideenduserswithavarietyofproductanddeliverysystemoptions.

TheCompany’ssignatureproductistheWD-40Multi-UseProductintheblueandyellowcanwiththeredtop,whichisincludedwithinthemaintenanceproductcategoryanditaccountsforasignificantmajorityoftheCompany’ssales.TheCompanyhasvariousproductsandproductlineswhichitcurrentlysellsundertheWD-40brandandtheyareasfollows:

WD-40Multi-UseProduct-TheWD-40Multi-UseProductisamarketleaderinmanycountriesamongmulti-purposemaintenanceproductsandissoldasanaerosolspraywithvariousuniquedeliverysystems,anon-aerosoltriggersprayandinliquid-bulkformthroughmassretailstores,hardwarestores,warehouseclubstores,automotivepartsoutlets,online retailers and industrial distributors and suppliers. The WD-40 Multi-Use Product is sold worldwide in North, Central and South America, Asia, Australia, Europe, theMiddleEastandAfrica.TheWD-40Multi-UseProducthasawidevarietyofconsumerusesin,forexample,household,marine,automotive,construction,repair,sportinggoodsandgardeningapplications,inadditiontonumerousindustrialapplications.

WD-40Specialistproductline–WD-40Specialistconsistsofalineofprofessional-gradespecialtymaintenanceproductsthatincludepenetrants,degreasers,corrosioninhibitors,greases,lubricantsandrustremoversthatareaimedatprofessionalsaswellasendusersthatcurrentlyusetheWD-40Multi-UseProduct.TheWD-40SpecialistproductlineissoldprimarilyintheU.S.,Canada,LatinAmerica,Europe,AustraliaandAsia.WithintheWD-40Specialistproductline,theCompanyalsosellsWD-40SpecialistMotorbikeintheUnitedStatesandEurope,WD-40SpecialistLawnandGardeninAustralia,andWD-40SpecialistAutomotiveinAsia.

WD-40Bikeproductline-TheWD-40Bikeproductlineconsistsofacomprehensivelineofbicyclemaintenanceproductsthatincludewetanddrychaindriplubricants,chaincleanersanddegreasers,andfoamingwashthataredesignedforavidandrecreationalcyclists,bikeenthusiastsandmechanics.TheCompanylaunchedthisproductlineintheU.S.infiscalyear2013inAustraliaandEuropeinfiscalyear2014,andinLatinAmericaandselectcountriesinAsiainearlyfiscalyear2016.Althoughtheinitialfocusforsuchsaleswasonsmallerindependentbikedealers,distributionofWD-40BikeproductshasbeenexpandedtoincludeselectdistributorsandretailersincountrieswheretheCompanysellsthisproduct.

TheCompanyalsohasthefollowingadditionalbrandswhichareincludedwithinitsmaintenanceproductsgroup:

3-IN-ONE -The3-IN-ONEbrandconsistsofmulti-purposedripoil,specialtydripoils,andspraylubricantproducts,aswellasotherspecialtymaintenanceproducts.Themulti-purposedripoilisalubricantwithuniquespoutoptionsthatallowforpreciseapplicationstosmallmechanismsandassemblies,toolmaintenanceandthreadsonscrewsandbolts.3-IN-ONEOilisthemarketshareleaderamongdripoilsforhouseholdconsumers.Italsohaswideindustrialapplicationsinsuchareasaslocksmithing,HVAC,marine,farmingandconstruction.Inadditiontothedripoillineofproducts,the3-IN-ONEbrandalsoincludesaprofessionallineofproductsknownas3-IN-ONEProfessional,whichisalineofprofessional-grademaintenanceproducts,aswellas3-IN-ONERVcareproductsand3-IN-ONEGarageDoorLubricant.Thehighqualityofthe3-IN-ONEbrandandits

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establisheddistributionnetworkhaveenabledtheseproductstogaininternationalacceptance.3-IN-ONEproductsaresoldprimarilyintheU.S.,Europe,Canada,LatinAmerica,AustraliaandAsia.

GT85®-TheGT85brandisamulti-purposebikemaintenanceproductthatconsistsofprofessionalspraymaintenanceproductsandlubricantswhicharesoldprimarilyinthebikemarketthroughtheautomotiveandindustrialchannelsintheU.K.,withadditionalsalesinforeignmarketsincludingthoseinSpainandotherEuropeancountries.ThisbrandwasacquiredbytheCompany’sU.K.subsidiaryinSeptember2014andithashelpedbuildupontheCompany’sstrategytodevelopnewproductcategoriesforWD-40SpecialistandWD-40BIKE.

HomecareandCleaningProducts

TheCompanysellsitshomecareandcleaningproductsincertainlocationsworldwideandtheyincludeaportfolioofwell-knownbrandsasfollows:

2000Flushes-The2000Flushesbrandisalineoflong-lastingautomatictoiletbowlcleanerswhichincludesavarietyofformulas.2000FlushesissoldprimarilyintheU.S.andCanadathroughgroceryandmassretailchannelsaswellasthroughonlineretailers.

SpotShot-TheSpotShotbrandissoldasanaerosolcarpetstainremoverandaliquidtriggercarpetstainandodoreliminator.ThebrandalsoincludesenvironmentallyfriendlyproductssuchasSpotShotInstant CarpetStain&OdorEliminator™andSpotShotPetClean,whicharenon-toxicandbiodegradable. SpotShotproductsaresoldprimarilythroughgroceryandmassretailchannels,onlineretailers,warehouseclubstoresandhardwareandhomecenterstoresintheU.S.andCanada.SpotShotproductsarealsosoldintheU.K.underthe1001brandname.

CarpetFresh-TheCarpetFreshbrandisalineofroomandrugdeodorizerssoldaspowder,aerosolquick-dryfoamandtriggersprayproducts.CarpetFreshissoldprimarilythroughgrocery,mass,andvalueretailchannelsaswellasthroughonlineretailersintheU.S.,theU.K.andAustralia.IntheU.K.,theseproductsaresoldunderthe1001brandnameandinAustralia,theyaresoldundertheNoVacbrandname.

1001-The1001brandincludescarpetandhouseholdcleanersandrugandroomdeodorizerswhicharesoldprimarilythroughmassretail,groceryandhomecenterstoresintheU.K. The brand was acquired in order to introduce the Company’s other homecare and cleaning product formulations under the 1001 brand and to expand the Company’shomecareandcleaningproductsbusinessintotheU.K.market.

Lava-TheLavaandSolvolbrandsconsistofheavy-dutyhandcleanerproductswhicharesoldinbarsoapandliquidformthroughhardware,grocery,industrial,automotiveandmassretailchannelsaswellasthroughonlineretailers.LavaissoldprimarilyintheU.S.,whileSolvolissoldexclusivelyinAustralia.

X-14-TheX-14brandisalineofqualityproductsdesignedforuniquecleaningneeds.X-14issoldasaliquidmildewstainremoverandasanautomatictoiletbowlcleaner.X-14issoldprimarilyintheU.S.throughgroceryandmassretailchannelsaswellasthroughonlineretailers.

TheCompany’shomecareandcleaningproducts,particularlythoseintheU.S.,areconsideredharvestbrandswhichcontinuetoprovidepositivereturnstotheCompanybutarebecomingasmallerpartofthebusinessassalesofthemaintenanceproductsgrowwiththeexecutionoftheCompany’sstrategicinitiatives.AlthoughtheCompanyhasevaluatedstrategicalternativesforcertainofitshomecareandcleaningproductsinpriorfiscalyears,particularlythoseintheU.S.,ithascontinuedtosellthesebrandsbuthasdonesowithareducedlevelofinvestment.

FinancialinformationaboutoperatingsegmentsandproductlinesisincludedinNote15–BusinessSegmentsandForeignOperationsoftheconsolidatedfinancialstatements,includedinItem15ofthisreport.

Sales and Marketing

TheCompany’ssalesdonotreflectanysignificantdegreeofseasonality.However,itiscommonfortheCompany’ssalestofluctuatefromperiodtoperiodoryeartoyearduetovariousfactorsincluding,butnotlimitedto,neworlostdistribution,thenumberofproductofferingscarriedbyacustomerandthelevelofpromotionalactivitiesandprogramsbeing run at customer locations. Newor lost distribution occurs when the Company gains or loses customers, when it gains or loses store count for a customer or when itsproductsareaddedtonewlocationswithinastoreorremovedfromexistinglocations.Fromtimetotime,aspartofnewproductofferinglaunches,theCompanymaygainaccessto entirely new distribution channels. The number of product offerings refers to the number of brands and/or the number of products within each of those brands that theCompany’scustomersofferforsaletoendusercustomers.Thelevelofpromotionalactivitiesandprogramsrelatestothenumberofevents

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orvolumesofpurchasesbycustomersinsupportofoff-shelforpromotionaldisplayactivities.ChangesinanyoneofthesethreefactorsoracombinationofthemcancausetheCompany’s sales levels to increase or decrease from period to period. It is also common and/or possible that the Company could lose distribution or product offerings andexperience a decrease in promotional activities and programs in one period and subsequently regain this business in a future period. The Company is accustomed to suchfluctuationsandmanagesthisaspartofitsnormalbusinessactivities.

Manufacturing

TheCompanyoutsourcesdirectlyorthroughitsmarketingdistributorsthemanufacturingofitsfinishedproductstovariousthird-partycontractmanufacturers.TheCompanyoritsmarketingdistributorsusecontractmanufacturersintheU.S.,Canada,Mexico,Brazil,Argentina,Columbia,theU.K.,Italy,Australia,Japan,China,SouthKoreaandIndia.AlthoughtheCompanydoesnottypicallyhavedefinitiveminimumpurchaseobligationsincludedinthecontract termswithitscontract manufacturers, whensuchobligationshavebeenincluded,theyhavebeenimmaterialtodate.SupplyneedsarecommunicatedbytheCompanytoitscontractmanufacturers,andtheCompanyiscommittedtopurchasetheproductsmanufacturedbasedonordersandshort-termprojections,rangingfromtwotofivemonths,providedtothecontractmanufacturers.TheCompanyalsoformulatesandmanufacturesconcentrateusedinitsWD-40productsatitsownfacilitiesandatthird-partycontractmanufacturers.

Inadditiontothecommitmentstopurchaseproductsfromcontractmanufacturersdescribedabove,theCompanymayalsoenterintocommitmentswithothermanufacturersfromtimetotimetopurchasefinishedgoodsandcomponentstosupportinnovationandrenovationinitiativesand/orsupplychaininitiatives.

Sources and Availability of Components and Raw Materials

The Companyand its third-party contract manufacturers relyon a limited number of suppliers, including single or sole suppliers, for certain of its rawmaterials, packaging,product components and other necessary supplies. The primary components and rawmaterials forthe Company’ sproductsinclude petroleum-based specialty chemicals andaerosolcans,whicharemanufacturedfromcommoditiesthataresubjecttovolatilepricechanges.Theavailabilityofthesecomponentsandrawmaterialsisaffectedbyavarietyof supply and demand factors, including global market trends, plant capacity decisions and natural disasters. The Company expects these components and raw materials tocontinuetobereadilyavailableinthefuture,althoughtheCompanywillcontinuetobeexposedtovolatilepricechanges.Research and Development

The Company recognizes the importance of innovation and renovation to its long-term success and is focused on and committed to research and new product developmentactivities, primarily in its maintenance product group. The Company’s product development team engages in consumer research, product development, current productimprovement andtestingactivities. Theproduct developmentteamalsoleveragesits developmentcapabilities bypartneringwithanetworkofoutsideresourcesincludingtheCompany’scurrentandprospectiveoutsourcesuppliers.Inaddition,theresearchanddevelopmentteamengagesinactivitiesandproductdevelopmenteffortswhicharenecessarytoensurethattheCompanymeetsallregulatoryrequirementsfortheformulationofitsproducts.TheCompanyincurredresearchanddevelopmentexpensesof$8.4million,$7.7million,and$9.0millioninfiscalyears2017,2016and2015,respectively.Noneofthisresearchanddevelopmentactivitywascustomer-sponsored.

Order Backlog

OrderbacklogisnotasignificantfactorintheCompany’sbusiness.

Competition

ThemarketsfortheCompany’sproducts,particularlythoserelatedtoitshomecareandcleaningproducts,arehighlycompetitive.TheCompany’sproductscompetebothwithintheirownproductclassesaswellaswithinproductdistributionchannels,competingwithmanyotherproductsforstoreplacementandshelfspace.Competitionininternationalmarketsvariesbycountry.TheCompanyisawareofmanycompetingproducts,someofwhichsellforlowerpricesorareproducedandmarketedbycompanieswithgreaterfinancial resources than those of the Company. The Company relies on the awareness of its brands among consumers, the value offered by those brands as perceived byconsumers,productinnovationandrenovationanditsmultiplechanneldistributionsasitsprimarystrategies.Newproductstypicallyencounterintensecompetition,whichmayrequire advertising and promotional support and activities. When or if a new product achieves consumer acceptance, ongoing advertising and promotional support may berequiredinordertomaintainitsrelativemarketposition.

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Trademarks and Patents

TheCompanyownsanumberofpatents,butreliesprimarilyuponitsestablishedtrademarks,brandnamesandmarketingefforts,includingadvertisingandsalespromotions,tocompeteeffectively.TheWD-40brand,3-IN-ONE,Lava,Solvol,X-14,2000Flushes,CarpetFreshandNoVac,SpotShot,GT85,and1001trademarksareregisteredorhavependingregistrationsinvariouscountriesthroughouttheworld.

Employees

AtAugust31,2017,theCompanyemployed448peopleworldwide:172bytheU.S.parentcorporation;7bytheMalaysiasubsidiary;12bytheCanadasubsidiary;183bytheU.K.subsidiary;20bytheAustraliasubsidiary;52bytheChinasubsidiary;and2byWD-40ManufacturingCompany,theCompany’smanufacturingsubsidiary.

Financial Information about Foreign and Domestic Operations

FordetailedinformationabouttheCompany’sforeignanddomesticoperations,includingnetsalesbyreportablesegmentandlong-livedassetsbygeography,refertoNote15-BusinessSegmentsandForeignOperationsoftheconsolidatedfinancialstatements,includedinItem15ofthisreport.

Access to SEC Filings

TheCompany’sAnnualReportsonForm10-K,QuarterlyReportsonForm10-Q,CurrentReportsonForm8-K,andanyamendmentstothosereportsfiledorfurnishedpursuanttoSection13(a)or15(d)oftheSecuritiesExchangeActof1934,asamended,areavailablethroughtheInvestorssectionoftheCompany’swebsiteatwww.wd40company.com.These reports can be accessed free of charge from the Company’s website as soon as reasonably practicable after the Company electronically files such materials with, orfurnishesthemto,theSecuritiesandExchangeCommission(“SEC”).InformationcontainedontheCompany’swebsiteisnotincludedasapartof,orincorporatedbyreferenceinto,thisreport.

InterestedreadersmayalsoreadandcopyanymaterialsthattheCompanyfilesattheSECPublicReferenceRoomat100FStreet,N.E.,Washington,D.C.20549.ReadersmayobtaininformationontheoperationofthePublicReferenceRoombycallingtheSECat1-800-SEC-0330.TheSECalsomaintainsaninternetsite(www.sec.gov)thatcontainstheCompany’sreports.

Item 1A . Risk Factors

Thefollowingrisksanduncertainties,aswellasotherfactorsdescribedelsewhereinthisreportorinotherSECfilingsbytheCompany,couldadverselyaffecttheCompany’sbusiness,financialconditionandresultsofoperations.

The Company’s financial results could suffer if the Company is unable to implement and successfully manage its strategic initiatives or if the Company’s strategic initiativesdo not achieve the intended results.

ThereisnoassurancethattheCompanywillbeabletoimplementandsuccessfullymanageitsstrategicinitiatives,includingitsfivemajorstrategicinitiatives,orthatthestrategicinitiativeswillachievetheintendedresults,whichincludesalesvolumegrowth.TheCompany’sfivecorestrategicinitiativesinclude:(i)maximizingWD-40Multi-UseProductsales through geographic expansion and increased market penetration; (ii) leveraging the WD-40 brand by growing the WD-40 Specialist product line; (iii) leveraging thestrengths of the Company through a broadened product and revenue base; (iv) attracting, developing and retaining talented people; and (v) operating with excellence. AnimportantpartoftheCompany’ssuccessdependsonitscontinuingabilitytoattract,retainanddevelophighlyqualifiedpeople.TheCompany’sfutureperformancedependsinsignificant part on maintaining high levels of employee engagement and nurturing the Company’s values and culture. In addition, it depends on the continued service of itsexecutiveofficers,keyemployeesandothertalentedpeople,aswellaseffectivesuccessionplanning.ThelossoftheservicesofkeyemployeescouldhaveamaterialadverseeffectontheCompany’sbusinessandprospects.Competitionforsuchtalentisintense,andtherecanbenoassurancethattheCompanycanretainitskeyemployeesorattract,assimilateandretainemployeeswhoarefullyengagedinthefuture.IftheCompanyisunabletoimplementandsuccessfullymanageitsstrategicinitiativesinaccordancewithitsbusiness plans, the Company’s business and financial results could be adversely affected. Moreover, the Company cannot be certain that the implementation of its strategicinitiativeswillnecessarilyadvanceitsbusinessorfinancialresultsasintended.

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G lobal operations outside the U.S. expose the Company to uncertain conditions, foreign currency exchange rate risk and other risks in international markets.

TheCompany’ssalesoutsideoftheU.S.wereapproximately61%ofconsolidatednetsalesinfiscalyear2017andoneofitsstrategicinitiativesincludesmaximizingtheWD-40Multi-UseProductthroughgeographicexpansionandmarketpenetration.Asaresult, theCompanycurrentlyfaces,andwillcontinuetoface,substantialrisksassociatedwithhavingincreasedglobaloperationsoutsidetheU.S.,including:

· economic or political instability in the Company’s global markets, including Canada, Latin America, the Middle East, parts of Asia, Russia, Eastern Europe and theEurozonecountries;

· restrictionsonorcostsrelatingtotherepatriationofforeignprofitstotheU.S.,includingpossibletaxesorwithholdingobligationsonanyrepatriations;· challengesassociatedwithconductingbusinessinforeignjurisdictions,includingthoserelatedtotheCompany’sunderstandingofandcompliancewithbusinesslaws

andregulationsinsuchforeignjurisdictions;· increasingtaxcomplexityassociatedwithoperatinginmultipletaxjurisdictions;· dispersedemployeebaseandcompliancewithemploymentregulationsandotherlaborissues,suchaslaborlawsandminimumwages,incountriesoutsidetheU.S.;and· theimpositionoftariffsortraderestrictionsandcosts,burdensandrestrictionsassociatedwithothergovernmentalactions.

Theserisks couldhavea significant impact onthe Company’s ability to sell its products ona competitive basis in global markets outside the U.S. andcouldhavea materialadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.

Approximately39%oftheCompany’srevenuesinfiscalyear2017weregeneratedincurrenciesotherthantheU.S.dollar,whichisthereportingcurrencyoftheCompany.Inaddition,alloftheCompany’sforeignsubsidiarieshavefunctionalcurrenciesotherthantheU.S.DollarandtheCompany’slargestsubsidiaryislocatedintheU.K.andgeneratessignificantsalesinPoundSterlingandEuro.Asaresult,theCompanyisalsoexposedtoforeigncurrencyexchangerateriskwithrespecttoitssales,expenses,profits,cashandcashequivalents,otherassetsandliabilitiesdenominatedincurrenciesotherthantheU.S.Dollar.Inparticular,theCompany’sfinancialresultsarenegativelyimpactedwhentheforeigncurrencies in whichits subsidiaryoffices operate weakenrelative to theU.S. Dollar. AlthoughtheCompanyuses instruments to hedgecertain foreigncurrencyrisks,primarily thoseassociatedwithits U.K.subsidiaryandnet assets denominatedinnon-functional currencies, it is not fully protectedagainst foreigncurrencyfluctuations and,therefore,theCompany’sreportedearningsmaybeaffectedbychangesinforeigncurrencyexchangerates.Moreover,anyfavorableimpactstoprofitmarginsorfinancialresultsfromfluctuationsinforeigncurrencyexchangeratesarelikelytobeunsustainableovertime.

AsaresultoftheJune2016referendumbyBritishvoterstoexittheEuropeanUnion(“Brexit”),globalmarketsandforeigncurrencieswereadverselyimpactedinthemonthsfollowingthevote.Inparticular,thevalueofthePoundSterlingsharplydeclinedascomparedtotheU.S.Dollarandothercurrenciesinlatefiscalyear2016andearlyfiscalyear2017.Subsequently, onMarch29, 2017, the U.K. invokedArticle 50of the LisbonTreaty, whichprovidesatwo-year timeperiod throughMarch2019for the U.K. andtheremainingEUcountriestonegotiateawithdrawalagreement.ThevolatilityinforeigncurrenciesmaycontinueastheU.K.negotiatesandexecutesitsimpendingexitfromtheEuropeanUnion,butitisuncertainoverwhattimeperiodthevolatilityinforeigncurrenciesasaresultofthiseventwilloccur.AsignificantlyweakerPoundSterlingcomparedtotheU.S.DollaroverasustainedperiodoftimemayhaveasignificantnegativeeffectontheCompany’sresultsofoperations.Inaddition,thelegalandregulatoryframeworkthatwillapplytotheU.K.anditsfuturerelationshipwiththeEuropeanUnionaftertheexitiscompletedmaychangethemannerinwhichbusinessesoperateinEurope,includinghowproductsandservicesareimportedandexportedbetweencountriesinEurope,andthiscouldadverselyimpacttheCompany’sfinancialconditionandresultsofoperations.The outcomes of the negotiations between the U.K. and the European Union are currently unknown and due to the lack of comparable precedent, the extent of any adverseconsequencestotheCompany’sbusinessisuncertain.

Additionally,theCompany’sglobaloperationsoutsidetheU.S.aresubjecttorisksrelatingtoappropriatecompliancewithlegalandregulatoryrequirementsinlocaljurisdictions,potentialdifficultiesinstaffingandmanaginglocaloperations,potentiallyhigherincidenceoffraudorcorruption,creditriskoflocalcustomersanddistributorsandpotentiallyadversetaxconsequences. AstheCompanyfurtherdevelopsandgrowsitsbusinessoperationsoutsidetheU.S., theCompanyisexposedtoadditional complexitiesandrisks,particularlyinChina,Russiaandemergingmarkets.Inmanyforeigncountries,particularlyinthosewithdevelopingeconomies,businesspracticesthatareprohibitedbytheU.S.ForeignCorruptPracticesAct(“FCPA”),theU.K.BriberyActorotherapplicableanti-corruptionlawsandregulationsmaybeprevalent.Anyfailuretocomplywiththeselaws,evenifinadvertent,couldresultinsignificantpenaltiesorotherwiseharmtheCompany’sreputationandbusiness.AlthoughtheCompanyhasadoptedpoliciesandcontracttermstomandatecompliancewiththeselaws,therecanbenoassurancethatallofitsemployees,contractorsandagentswillcomplywiththeCompany’srequirements.ViolationsoftheselawscouldbecostlyanddisrupttheCompany’sbusiness,whichcouldhaveamaterialadverseeffectonitsbusiness,financialconditionandresultsofoperations.

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If the success and reputation of one or more of the Company’s leading brands erodes, its business, financial condition and results of operations could be negatively impacted.

The financial success of the Company is directly dependent on the success and reputation of its brands, particularly its WD-40 brand. The success and reputation of theCompany’sbrandscansufferifmarketingplansorproductdevelopmentandimprovementinitiatives,includingthereleaseofnewproductsorinnovativepackaging,donothavethedesiredimpactonthebrands’imageordonotattractcustomersasintended.TheCompany’sbrandscanalsobeadverselyimpactedduetotheactivitiesandpressuresplacedonthembytheCompany’scompetitors.Further,theCompany’sbusiness,financialconditionandresultsofoperationscouldbenegativelyimpactedifoneofitsleadingbrandssuffersdamagetoitsreputationduetorealorperceivedqualityorsafetyissues.Qualityissues,whichcanleadtolargescalerecallsoftheCompany’sproducts,canbeduetoitemssuchasproductcontamination,regulatorynon-compliance,packagingerrors,incorrectingredientsorcomponentsintheCompany’sproductorlowqualityingredientsintheCompany’sproductsduetosuppliersdeliveringitemsthatdonotmeettheCompany’sspecifications.Productqualityissues,whichcouldincludelowerproductefficacyduetoformulationchangesattributabletoregulatoryrequirements,couldalsoresultindecreasedcustomerconfidenceintheCompany’sbrandsandadeclineinproductqualitycouldresultinproductliabilityclaims.AlthoughtheCompanymakeseveryefforttopreventbranderosionandpreserveitsreputationandthereputationofitsbrands,therecanbenoassurancethatsucheffortswillbesuccessful.

Sales unit volume growth may be difficult to achieve.

TheCompany’sabilitytoachievesalesvolumegrowthwilldependonitsabilityto(i)executeitsstrategicinitiatives,(ii)drivegrowthinnewmarketsbymakingtargetedendusersawareoftheCompany’sproductsandmakingthemeasiertobuy,(iii)drivegrowthwithinitsexistingmarketsthroughinnovation,renovationandenhancedmerchandisingandmarketingofits establishedbrands,and(iv)capturemarketsharefromitscompetitors. It is moredifficult fortheCompanytoachievesalesvolumegrowthindevelopedmarketswheretheCompany’sproductsarewidelyusedascomparedtoindevelopingoremergingmarketswheretheCompany’sproductshavebeennewlyintroducedorarenotaswellknownbyconsumers.InordertoprotecttheCompany’sexistingmarketshareorcaptureadditionalmarketsharefromitscompetitors,theCompanymayneedtoincreaseitsexpendituresrelatedtopromotionsandadvertisingorintroduceandestablishnewproductsorproductlines.Inpastperiods,theCompanyhasalsoincreasedsalespricesoncertainofitsproductsinresponsetoincreasedcostsforcomponentsandrawmaterials.Salespriceincreasesmayslowsalesvolumegrowthorcreatedeclinesinvolumeintheshorttermascustomersadjusttosalespriceincreases.Inaddition,thecontinuedprominenceandgrowthoftheonlineretailsaleschannelhaspresentedboththeCompanyanditscustomersthat sell the Company’s products onlinewith the challenge of balancing online andphysical store retailing methods. Achange in the strategies of the Company’sexistingcustomers,includingshelfsimplification,thediscontinuationofcertainproductofferingsortheshiftinshelfspacetocompetitors’productscouldreducetheCompany’ssalesandpotentiallyoffsetsalesvolumeincreasesachievedasaresultofothersalesgrowthinitiatives.IftheCompanyisunabletoincreasemarketshareinitsexistingproductlinesbydevelopingproductimprovements,investingadequatelyinitsexistingbrands,buildingusageamongnewcustomers,developing,acquiringorsuccessfullylaunchingnewproductsorproductlineextensions, orsuccessfullypenetratingemerginganddevelopingmarketsandsaleschannelsglobally, theCompanymaynotachieveitssalesvolumegrowthobjectives.

Cost increases or cost volatility in finished goods, components, raw materials, transportation and other necessary supplies or services could harm or impact the Company’sfinancial condition and results of operations.

Increasesinthecostoffinishedgoods,componentsandrawmaterialsandincreasesinthecostoftransportationandothernecessarysuppliesorservicesmayharmtheCompany’sfinancialconditionandresultsofoperations.Petroleum-basedspecialtychemicalsandaerosolcans,whichconstituteasignificantportionofthecostsformanyoftheCompany’smaintenanceproducts,haveexperiencedsignificantpricevolatilityinthepast,andmaycontinuetodosointhefuture.Inparticular,volatilityinthepriceofoildirectlyimpactsthecostofpetroleum-basedspecialtychemicalswhichareindexedtothepriceofcrudeoil.Additionally,fluctuationsinoilanddieselfuelpriceshavealsohistoricallyimpactedtheCompany’scostoftransportingitsproductsamongotherinputcosts.Iftherearesignificantincreasesinthecostsofcomponents,rawmaterialsandotherexpenses,andtheCompany is not able to increase the prices of its products or achieve cost savings to offset such cost increases, the Company’s gross margins and operating results will benegativelyimpacted.Inaddition,iftheCompanyincreasesproductsalespricesinresponsetoincreasesinthecostofsuchrawmaterials,andthoserawmaterialcostslaterdeclinesignificantly,theCompanymaynotbeabletosustainitssalespricesatthesehigherlevels.AscomponentandrawmaterialcostsaretheprincipalcontributorstothecostofgoodssoldforalloftheCompany’sproducts,anysignificantfluctuationinthecostsofcomponentsandrawmaterialscouldhaveamaterialimpactonthegrossmarginsrealizedontheCompany’sproducts.Sustainedincreasesinthecostofrawmaterials,components,transportationandothernecessarysuppliesorservices,orsignificantvolatilityinsuchcosts,couldhaveamaterialadverseeffectontheCompany’sfinancialconditionandresultsofoperations.

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Global economic conditions may negatively impact the Company’s financial condition and results of operations.

Ageneral weakeningordeclineintheglobaleconomyorareductioninindustrial outputs, businessorconsumerspendingorconfidencecoulddelayorsignificantlydecreasepurchasesoftheCompany’sproductsbyitscustomersandendusers.Consumerpurchasesofdiscretionaryitems,whichcouldincludetheCompany’smaintenanceproductsandhomecareandcleaningproducts,maydeclineduringperiodswheredisposableincomeisreducedorthereiseconomicuncertainty,andthismaynegativelyimpacttheCompany’sfinancialconditionandresultsofoperations.Duringunfavorableoruncertaineconomictimes,endusersmayalsoincreasepurchasesoflower-pricedornon-brandedproductsandtheCompany’scompetitorsmayincreasetheirlevelofpromotionalactivitiestomaintainsalesvolumes,bothofwhichmaynegativelyimpacttheCompany’sfinancialconditionandresultsofoperations.Inaddition,theCompany’ssalesandoperatingresultsmaybeaffectedbyuncertainorchangingeconomicandmarketconditions,includinginflation,deflation,prolongedweakconsumerdemand,politicalinstabilityorotherchangeswhichmayaffecttheprincipalmarkets,tradechannels,andindustrialsegmentsinwhichtheCompany conducts its business. If economic or market conditions in key global markets deteriorate, the Company may experience material adverse effects on its business,financialconditionandresultsofoperations.

Adverse economic and market conditions could also harm the Company’s business by negatively affecting the parties with whom it does business, including its customers,retailers, distributors and wholesalers, and third-party contract manufacturers and suppliers. These conditions could impair the ability of the Company’s customers to pay forproducts they have purchased from the Company. As a result, allowances for doubtful accounts and write-offs of accounts receivable from the Company’s customers mayincrease. Inaddition, theCompany’s third-party contract manufacturers andits suppliers mayexperiencefinancial difficulties that couldnegativelyaffect their operations andtheirabilitytosupplytheCompanywithfinishedgoodsandtherawmaterials,packaging,andcomponentsrequiredfortheCompany’sproducts.

Government laws and regulations, including environmental laws and regulations, could result in material costs or otherwise adversely affect the Company’s financialcondition and results of operations.

Themanufacturing,chemicalcomposition,packaging,storage,distributionandlabelingoftheCompany’sproductsandthemannerinwhichtheCompany’sbusinessoperationsareconductedmustcomplywithanextensivearrayoffederal,stateandforeignlawsandregulations.IftheCompanyisnotsuccessfulincomplyingwiththerequirementsofallsuchregulations,itcouldbefinedorotheractionscouldbetakenagainsttheCompanybytheapplicablegoverningbody,includingthepossibilityofarequiredproductrecall.AnysuchregulatoryactioncouldadverselyaffecttheCompany’sfinancialconditionandresultsofoperations.Itisalsopossiblethatgovernmentsandregulatoryagencieswillincreaseregulation,includingtheadoptionoffurtherregulationsrelatingtothetransportation,storageoruseofcertainchemicals,toenhancehomelandsecurityorprotecttheenvironmentandsuchincreasedregulationcouldnegativelyimpacttheCompany’sabilitytoobtainrawmaterials,componentsand/orfinishedgoodsorcouldresultinincreasedcosts.Intheeventthatsuchregulationsresultinincreasedproductcosts,theCompanymaynotbeinapositiontoraisesellingprices,andthereforeanincreaseincostscouldhaveamaterialadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.

SomeoftheCompany’sproductshavechemicalcompositionsthatarecontrolledbyvariousstate,federalandinternationallawsandregulations,suchasregulationsissuedbytheCaliforniaAirResourcesBoardrelatingtopermittedlevelsofvolatileorganiccompounds.TheCompanyisrequiredtocomplywiththeselawsandregulationsanditseekstoanticipateregulatorydevelopmentsthatcouldimpacttheCompany’sabilitytocontinuetoproduceandmarketitsproducts.TheCompanyinvestsinresearchanddevelopmenttomaintainproductformulationsthatcomplywithsuchlawsandregulations.TherecanbenoassurancethattheCompanywillnotberequiredtoalterthechemicalcompositionofoneor more of the Company’s products in a waythat will have anadverse effect uponthe product’s efficacy or marketability. Adelay or other inability of the CompanytocompleteproductresearchanddevelopmentandsuccessfullyreformulateitsproductsinresponsetoanysuchregulatoryrequirementscouldhaveamaterialadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.

TheCompanyissubjecttoanSECrulemandatedbySection1502oftheDodd-FrankWallStreetReformandConsumerProtectionActthatrequiresmanagementtoconductannualduediligencetodeterminewhethercertainmineralsandmetals,knownas“conflictminerals”,arecontainedintheCompany’sproductsand,ifso,whethertheyoriginatefromtheDemocraticRepublicofCongo(“DRC”)oradjoiningcountries.AlthoughtheCompany’scurrentproductsdonotcontainsuchconflictmineralsandtheCompanyhasconcluded this in its annual evaluations to date, the Company’s supply chain structure is complex. As a result, management may have difficulty determining whether thesematerialsexistwithintheCompany’sproductsinfutureperiods,andiftheCompanyweretoconcludethatthesematerialsexistwithintheCompany’sproductsinfutureperiods,theCompanymayhavedifficultyverifyingtheoriginofsuchmaterialsforpurposesofdisclosuresrequiredbytheSECrules.

The Company is also subject to numerous environmental laws and regulations that impose various environmental controls on its business operations, including, among otherthings,thedischargeofpollutantsintotheairandwater,thehandling,use,treatment,storageandclean-upofsolidandhazardouswastesandtheinvestigationandremediationofsoilandgroundwateraffectedbyhazardoussubstances.Suchlawsandregulationsmayotherwiserelatetovarioushealthandsafetymattersthatimposeburdens

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upontheCompany’soperations.Theselawsandregulationsalsoimposestrict,retroactiveandjointandseveralliabilityforthecostsof,anddamagesresultingfrom,cleaningupcurrentsites,pastspills,disposalsandotherreleasesofhazardoussubstances.TheCompanybelievesthatitsexpendituresrelatedtoenvironmentalmattershavenothad,andarenotcurrentlyexpectedtohave,amaterialadverseeffectonitsfinancialcondition,resultsofoperationsorcashflows.However,theenvironmentallawsunderwhichtheCompanyoperates are complicated, often become increasingly more stringent and may be applied retroactively. Accordingly, there can be no assurance that the Company will not berequiredtoincuradditional expenditurestoremaininortoachievecompliancewithenvironmental lawsinthefutureorthat anysuchadditional expenditureswill nothaveamaterialadverseeffectontheCompany’sbusiness,financialconditionorresultsofoperations.

AdditionallawsandregulationsrequirethattheCompanycarefullymanageitssupplychainfortheproduction,distributionandsaleofgoods.Forinstance,regulationsundertheCaliforniaTransparencyinSupplyChainsActandtheU.K.ModernSlaveryActrequireattentiontotheemploymentpracticesoftheCompany’ssuppliers.Variousregulationsaffect the packaging, labelling and shipment of the Company’s products, including the Globally Harmonized System of Classification and Labelling of Chemicals which isapplicableinmanycountriesworldwide,andregulationsissuedbytheU.S.ConsumerProductSafetyCommission,theU.S.EnvironmentalProtectionAgency,theU.S.FederalTradeCommission,andsimilarforeignjurisdictionregulatoryagencies.FailurebytheCompanytocomplywithanyoftheseregulationsoritsinabilitytoadequatelypredictthemannerinwhichtheseregulationsareinterpretedandappliedtotheCompany’sbusinessbytheapplicableenforcementagenciescouldhaveamateriallyadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.

Failure to maximize or to successfully assert the Company’s intellectual property rights or infringement by the Company on the intellectual property rights of others couldimpact its competitiveness or otherwise adversely affect the Company’s financial condition and results of operations.

The Company relies on trademark, trade secret protection, patent and copyright laws to protect its intellectual property rights. Although the Company maintains a globalenforcementprogramtoprotectitsintellectualpropertyrights,therecanbenoassurancethattheseintellectualpropertyrightswillbemaximizedorthattheycanbesuccessfullyasserted.Tradesecretprotection,particularlyfortheCompany’smostvaluableproductformulationfortheWD-40Multi-UseProduct,requiresspecificagreements,policiesandprocedurestoassurethesecrecyofinformationclassifiedasatradesecret.Ifsuchagreements,policiesandproceduresarenoteffectivetomaintainthesecrecyoftheCompany’stradesecrets,thelossoftradesecretprotectioncouldhaveanadverseeffectontheCompany’sfinancialcondition.ThereisariskthattheCompanywillnotbeabletoobtainandperfectitsownintellectualpropertyrightsor,whereappropriate,licenseintellectualpropertyrightsnecessarytosupportnewproductintroductionsoracquiredproductlines.TheCompany cannot be certain that these rights, if obtained, will not be invalidated, circumvented or challenged in the future, and the Company could incur significant costs inconnection with legal actions to defend its intellectual property rights. In addition, even if such rights are obtained in the U.S., it may be that the laws of some of the othercountries in whichthe Company’s products are or maybesold donot protect intellectual property rights to the sameextent as the lawsof the United States, or theymaybedifficult toenforce.IfothercompaniesinfringetheCompany’sintellectualpropertyrightsortakepartincounterfeitingactivities, theymaydilutethevalueoftheCompany’sbrands in the marketplace, whichcould diminish the value that consumers associate with the Company’s brands andharmits sales. Thefailure of the Companyto protect orsuccessfullyassertitsintellectualpropertyrightsortoprotectitsotherproprietaryinformationcouldmaketheCompanylesscompetitiveandthiscouldhaveamaterialadverseeffectonitsbusiness,financialconditionandresultsofoperations.

IftheCompanyisfoundtohaveviolatedthetrademark,copyright,patentorotherintellectualpropertyrightsofothers,suchafindingcouldresultintheneedtoceasetheuseofatrademark,tradesecret,copyrightedworkorpatentedinventionintheCompany’sbusinessandanobligationtopayasubstantialamountforpastinfringement.ItcouldalsobenecessarytopayasubstantialamountinthefutureiftheholdersofsuchrightsarewillingtopermittheCompanytocontinuetousetheintellectualpropertyrights.Eitherhavingto cease use or pay such amounts could make the Company less competitive and could have a material adverse impact on its business, financial condition and results ofoperations.

Malfunctions of the critical information systems that the Company uses for the daily operations of its business, cyberattacks and privacy breaches could adversely affect theCompany’s ability to conduct business.

Toconductitsbusiness,theCompanyreliesextensivelyoninformationtechnologysystems,networksandservices,someofwhicharemanaged,hostedandprovidedbythird-partyserviceproviders.Systemfailure,malfunctionorlossofdatawhichishousedintheCompany’scriticalinformationsystemscoulddisruptitsabilitytotimelyandaccuratelyprocess transactions and produce key financial reports, including information on the Company’s operating results, financial position and cash flows. In addition, informationtechnologysecuritythreatsandmoresophisticatedcomputercrimeposeapotentialrisktothesecurityoftheCompany’sinformationtechnologysystemsandnetworks,aswellastotheconfidentiality,availabilityandintegrityoftheCompany’sdata.TheCompany’sinformationsystemscouldbedamagedorceasetofunctionproperlyduetoanumberofreasons, including catastrophic events, power outages and security breaches. A security breach resulting in the unauthorized release of sensitive data from the Company’sinformationsystemscouldalsomateriallyincreasethecoststhattheCompany

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alreadyincurstoprotectagainstsuchrisks.AlthoughtheCompanyhascertainbusinesscontinuityplansinplacetoaddresssuchserviceinterruptions,thereisnoguaranteethatthesebusinesscontinuityplanswill providealternativeprocessesinatimelymanner. Asaresult, theCompanymayexperienceinterruptionsinitsabilitytomanageitsdailyoperationsandthiscouldadverselyaffecttheCompany’sbusiness,financialconditionandresultsofoperations.

TheinformationsystemthattheU.S.officeusesforitsbusinessoperationsisamarketspecificapplicationwhichisnotwidelyusedbyothercompanies.ThissystemsupportstwootherregionalofficesoutsidetheU.S.aswell.Thecompanythatownsandsupportsthisapplicationmaynotbeabletoprovidethesamelevelofsupportasthatofcompanieswhich own larger, more widely spread information systems. If the company that supports this application in the U.S. were to cease its operations or were unable to providecontinuedsupportforthisapplication,itcouldadverselyaffecttheCompany’sdailyoperationsoritsbusiness,financialconditionandresultsofoperations.

The Company faces competition in its markets which could lead to reduced sales and profitability.

TheCompanyencounterscompetitionfromsimilarandalternativeproducts,manyofwhichareproducedandmarketedbymajornationalormultinationalcompanies.Inaddition,the Companyfrequently discovers products in certain markets that are counterfeit reproductions of the Company’s WD-40products as well as products otherwise bearing aninfringingtradedress.Theavailabilityofcounterfeitsandotherinfringingproducts,particularlyinChina,Russiaandemergingmarkets,couldadverselyimpacttheCompany’ssalesandpotentiallydamagethevalueandreputationofitsbrands.TheCompany’sproductsgenerallycompeteonthebasisofproductperformance,brandrecognition,price,qualityorotherbenefitstoconsumersandmeetingendusers’needs.Advertising, promotions, merchandising and packaging also have a significant impact on consumer purchasing decisions. A newly introduced consumer product, whetherimproved or recently developed, usually encounters intense competition requiring substantial expenditures for advertising, sales and consumer promotion. If a product gainsconsumeracceptance,itnormallyrequirescontinuedadvertising,promotionalsupportandproductimprovementsinordertomaintainitsrelativemarketposition.

SomeofthecompetitorsfortheCompany’shomecareandcleaningproductsarelargerandhavefinancialresourcesgreaterthanthoseoftheCompany.Thesecompetitorsmaybeabletospendmoreaggressivelyonadvertisingandpromotionalactivities,introducecompetingproductsmorequicklyandrespondmoreeffectivelytochangingbusinessandeconomicconditionsthantheCompany.

CompetitiveactivitymayrequiretheCompanytoincreaseitsinvestmentinmarketingorreduceitssalespricesandthismayleadtoreducedprofitmargins,alossofmarketshare or loss of distribution, each of which could have a material adverse effect on the Company’s business, financial condition and results of operations. There can be noassurancethattheCompanywillbeabletocompetesuccessfullyagainstcurrentandfuturecompetitorsorthatcompetitivepressuresfacedbytheCompanyortheinfringementofitsproductsandbrandswillnothaveamaterialadverseeffectonitsbusiness,financialconditionandresultsofoperations.

Dependence on key customers could adversely affect the Company’s business, financial condition and results of operations.

TheCompanysellsitsproductsthroughanetworkofdomesticandinternationalmassretail,tradesupplyandconsumerretailersaswellasindustrialdistributorsandsuppliers.Theretailindustryhashistoricallybeenthesubjectofconsolidation,andasaresult,thedevelopmentoflargechainstoreshastakenplace.Today,theretailchanneliscomprisedofseveraloftheselargechainstoresthatcapturethebulkofthemarketshare.SincemanyoftheCompany’scustomershavebeenpartofconsolidationsintheretailindustry,theselimitedcustomersaccountforalargepercentageoftheCompany’snetsales.AlthoughtheCompanyexpectsthatasignificantportionofitsrevenueswillcontinuetobederivedfromthislimitednumberofcustomers,therewasnoindividualcustomerthatcontributedtomorethan10%oftheCompany’sconsolidatednetsalesinfiscalyear2017.However,changesinthestrategiesoftheCompany’slargestcustomers,includingshelfsimplification,areductioninthenumberofbrandstheycarryorashiftinshelfspaceto“privatelabel”orcompetitors’products,mayharmtheCompany’ssales.Thelossof,orreductionin,ordersfromanyoftheCompany’smostsignificantcustomerscouldhaveamaterial adverse effect on the Company’s brand values, business, financial condition and results of operations. Large customers may seek price reductions, added support orpromotionalconcessions.IftheCompanyagreestosuchcustomerdemandsand/orrequests,itcouldnegativelyimpacttheCompany’sabilitytomaintainexistingprofitmargins.

Inaddition, the Company’s business is based primarily uponindividual sales orders, and the Companytypically does not enter into long-termcontracts with its customers.Accordingly,thesecustomerscouldreducetheirpurchasinglevelsorceasebuyingproductsfromtheCompanyatanytimeandforanyreason.TheCompanyisalsosubjecttochangesincustomerpurchasingpatternsorthelevelofpromotionalactivities.Thesetypesofchangesmayresultfromchangesinthemannerinwhichcustomerspurchaseandmanageinventorylevels,ordisplayandpromoteproductswithintheirstores.Otherpotentialfactorssuchascustomerdisputesregardingshipments,fees,merchandiseconditionorrelatedmattersmayalsoimpactoperatingresults.Ifthe

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Companyceasesdoingbusinesswithasignificantcustomerorifsalesofitsproductstoasignificantcustomermateriallydecrease,theCompany’sbusiness,financialconditionandresultsofoperationsmaybeharmed.

The Company may not successfully develop, introduce and /or establish new products and line extensions.

TheCompany’sfutureperformanceandgrowthdepend,inpart,onitsabilitytosuccessfullydevelop,introduceand/orestablishnewproductsasbothbrandextensionsand/orline extensions. The Company cannot be certain that it will successfully achieve those goals. The Company competes in several product categories where there are frequentintroductionsofnewproductsandlineextensionsandsuchproductintroductionsoftenrequiresignificantinvestmentandsupport.TheabilityoftheCompanytounderstandenduserneedsandpreferencesiskeytomaintainingandimprovingthecompetitivenessofitsproductofferings.Thedevelopmentandintroductionofnewproducts,aswellastherenovation of current products and product lines, require substantial and effective research, development and marketing expenditures, which the Company may be unable torecoupif thenewor renovatedproducts donot gainwidespreadmarket acceptance. There are inherent risks associatedwithnewproduct development andmarketingefforts,includingproductdevelopmentorlaunchdelays,productperformanceissuesduringdevelopment,changingregulatoryframeworksthataffectthenewproductsindevelopmentand the availability of key raw materials included in such products. These inherent risks could result in the failure of new products and product line extensions to achieveanticipatedlevels of market acceptance, additional costs resultingfromfailedproduct introductions andtheCompanynot beingfirst to market. AstheCompanycontinuestofocusoninnovationandrenovationofitsproducts,theCompany’sbusiness,financialconditionorresultsofoperationscouldbeadverselyaffectedintheeventthattheCompanyisnotabletoeffectivelydevelopandintroduceneworrenovatedproductsandlineorbrandextensions.

Goodwill and intangible assets are subject to impairment risk.

Inaccordancewiththeauthoritativeaccountingguidanceongoodwillandintangibles,theCompanyassessesthepotentialimpairmentofitsexistinggoodwillduringthesecondquarterofeachfiscalyearandotherwisewheneventsorchangesincircumstancesindicatethatanimpairmentconditionmayexist.TheCompanyalsoassessesitsdefinite-livedintangibleassetsforpotentialimpairmentwheneventsandcircumstancesindicatethatthecarryingamountoftheassetmaynotberecoverableoritsestimatedremainingusefullife may no longer be appropriate. Indicators such as underperformance relative to historical or projected future operating results, changes in the Company’s strategy for itsoverall business or use of acquired assets, unexpected negative industry or economic trends, decline in the Company’s stock price for a sustained period, decreased marketcapitalizationrelativetonetbookvalues,unanticipatedtechnologicalchangeorcompetitiveactivities,lossofkeydistribution,changeinconsumerdemand,lossofkeypersonnelandactsbygovernmentsandcourtsmaysignalthatanassethasbecomeimpaired.

The assessment for possible impairment of the Company’s goodwill and intangible assets requires management to make judgments on a number of significant estimates andassumptions,includingmacroeconomicconditions,overallcategorygrowthrates,salesgrowthrates,costcontainmentandmarginexpansionandexpenselevelsforadvertisingandpromotionsandgeneraloverhead,allofwhichmustbedevelopedfromamarketparticipantstandpoint.TheCompanymayberequiredtorecordasignificantchargeinitsconsolidatedfinancial statements duringthe periodin whichanyimpairment of its goodwill or intangible assets is identified andthis couldnegatively impact theCompany’sfinancial condition and results of operations. Although the Company has recorded significant impairments to certain of its intangible assets in prior fiscal years, no suchimpairments havebeenidentifiedor recordedtoits goodwill. Changesinmanagement estimates andassumptionsas theyrelate tovaluationof goodwill andintangible assetscouldaffecttheCompany’sfinancialconditionorresultsofoperationsinthefuture.

TheCompanymayalsodivestofcertainofitsassets,businessesorbrandsthatdonotalignwiththeCompany’sstrategicinitiatives.AnydivestiturecouldnegativelyimpacttheprofitabilityoftheCompanyasaresultoflossesthatmayresultfromsuchasale,thelossofsalesandoperatingincomeoradecreaseincashflowssubsequenttothedivestiture.TheCompanymayalsoberequiredtorecognizeimpairmentchargesasaresultofadivesture.

Changes in marketing distributor relationships that are not managed successfully by the Company could result in a disruption in the affected markets.

TheCompanydistributesitsproductsthroughouttheworldinoneoftwoways:thedirectdistributionmodel,inwhichproductsaresolddirectlybytheCompanytowholesalersandretailersintheU.S.,Canada,Australia,China,theU.K.andanumberofothercountriesthroughoutEurope;andthemarketingdistributormodel,inwhichproductsaresoldtomarketingdistributorswhointurnselltowholesalersandretailers.ThemarketingdistributormodelisgenerallyusedincertaincountrieswheretheCompanydoesnothavedirectCompany-ownedoperations. Instead,theCompanypartnerswithlocalcompanieswhoperformthesales, marketinganddistributionfunctions. TheCompanyinveststimeandresourcesintotheserelationships.ShouldtheCompany’srelationshipwithamarketingdistributorchangeorterminate,theCompany’ssaleswithinsuchmarketingdistributor’sterritorycouldbeadverselyimpacteduntilsuchtimeasasuitablereplacementcouldbefoundandtheCompany’skeymarketingstrategiesareimplemented.Thereisariskthatchangesinsuchmarketingdistributorrelationships,including

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changes in key marketing distributor personnel, that are not managed successfully, could result in a disruption in the affected markets and that such disruption could have amaterialadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.Additionally,insomecountries,locallawsmayrequiresubstantialpaymentstoterminateexistingmarketingdistributorrelationships,whichcouldalsohaveamaterialadverseeffectontheCompany’sbusiness,financialconditionandresultsofoperations.

Reliance on a limited base of third-party contract manufacturers, logistics providers and suppliers of raw materials and components may result in disruption to theCompany’s business and this could adversely affect the Company’s financial condition and results of operations.

TheCompanyreliesonalimitednumberofthird-partycontractmanufacturers,logisticsprovidersandsuppliers,includingsingleorsolesourcesuppliersforcertainofitsrawmaterials,packaging,productcomponentsandothernecessarysupplies.TheCompanydoesnothavedirectcontroloverthemanagementorbusinessofthesethirdparties,exceptindirectlythroughtermsnegotiatedinserviceorsupplycontracts.ShouldthetermsofdoingbusinesswiththeCompany’sprimarythird-partycontractmanufacturers,suppliersand/or logistics providers changeor should the Companyhavea disagreement with or be unable to maintain relationships with suchthird parties or should suchthird partiesexperiencefinancialdifficulties,theCompany’sbusinessmaybedisrupted.Inaddition,iftheCompanyisunabletocontractwiththird-partymanufacturersorsuppliersforthequantityandqualitylevelsneededforitsbusiness,theCompanycouldexperiencedisruptionsinproductionanditsfinancialresultscouldbeadverselyaffected.

Product liability claims and other litigation and/or regulatory action could adversely affect the Company’s sales and operating results.

WhiletheCompanymakeseveryefforttoensurethattheproductsitdevelopsandmarketsaresafeforconsumers,theuseoftheCompany’sproductsmayexposetheCompanyto liability claims resulting fromsuch use. Claims could be based on allegations that, amongother things, the Company’s products contain contaminants, provide inadequateinstructionsregardingtheiruseorinadequatewarningsconcerningtheiruseorinteractionswithothersubstances.ProductliabilityclaimscouldresultinnegativepublicitythatcouldharmtheCompany’ssalesandoperatingresults.TheCompanymaintainsproductliabilityinsurancethatitbelieveswillbeadequatetoprotecttheCompanyfrommateriallossattributabletosuchclaimsbuttheextentofsuchlosscouldexceedavailablelimitsofinsuranceorcouldariseoutofcircumstancesunderwhichsuchinsurancecoveragewouldbeunavailable.OtherbusinessactivitiesoftheCompanymayalsoexposetheCompanytolitigationrisks,includingrisksthatmaynotbecoveredbyinsurancesuchascontractdisputes.IfsuccessfulclaimsareassertedbythirdpartiesagainsttheCompanyforuninsuredliabilitiesorliabilitiesinexcessofapplicablelimitsofinsurancecoverage,theCompany’sbusiness,financialconditionandresultsofoperationsmaybeadverselyaffected.Inaddition,ifoneoftheCompany’sproductswasdeterminedtobedefective,theCompanycouldberequiredtorecalltheproduct,whichcouldresultinadversepublicity,lossofrevenuesandsignificantexpenses.

Additionally, the Company’s products may be associated with competitor products or other products in the same category, which may be alleged to have caused harm toconsumers. As a result of this association, the Company may be named in unwarranted legal actions. The potential costs to defend such claims may materially affect theCompany’sbusiness,financialconditionandresultsofoperations.

The Company’s operating results and financial performance may not meet expectations which could adversely affect the Company’s stock price.

TheCompanycannotbesurethatitsoperatingresultsandfinancialperformance,whichincludesalesgrowth,netincome,earningspercommonshare,grossmarginandcashflows,willmeetexpectations.IftheCompany’sassumptionsandestimatesareincorrectordonotcometofruition,oriftheCompanydoesnotachieveallofitskeygoalsorstrategic initiatives, then the Company’s actual performance could vary materially from its internal expectations and those of the market. Failure to meet or exceed theseexpectations couldcause the market price of the Company’s stockto decline. TheCompany’s operating results andfinancial performance maybe negatively influencedbyanumberoffactors,manyofwhicharediscussedinthisItem1A“RiskFactors”.In addition, sales volumegrowth, whether due to acquisitions or internal growth, can place burdens onmanagement resources andfinancial controls that, in turn, can have anegativeimpactonoperatingresultsandfinancialconditionoftheCompany.Tosomeextent,theCompanyplansitsexpenselevelsinanticipationoffuturerevenues.Ifactualrevenues fall short of these expectations, operating results may be adversely affected by reduced operating margins due to actual expense levels that are higher than mightotherwisehavebeenappropriate.

12

Resolution of income tax matters may impact the Company’s financial condition and results of operations.

SignificantjudgmentisrequiredindeterminingtheCompany’seffectiveincometaxrateandinevaluatingtaxpositions,particularlythoserelatedtouncertaintaxpositions.TheCompanyprovidesforuncertaintaxpositionswhensuchtaxpositionsdonotmeettherecognitionthresholdsormeasurementstandardsprescribedbytheaccountingstandardforuncertaintaxpositions. Changesinuncertaintaxpositionsorotheradjustmentsresultingfromtaxauditsandsettlementswithtaxingauthorities, includingrelatedinterest andpenalties, impact the Company’s effective tax rate. When particular tax matters arise, a number of years may elapse before such matters are audited and finally resolved.FavorableresolutionofsuchmatterscouldberecognizedasareductiontotheCompany’seffectivetaxrateintheyearofresolution.Unfavorableresolutionofanytaxmattercould increase the Company’s effective tax rate. Any resolution of a tax matter may require the adjustment of tax assets or tax liabilities or the use of cash in the year ofresolution.Foradditionalinformation,refertotheinformationsetforthinNote12–IncomeTaxes,whichisincludedinItem15ofthisreport.

Inaddition,changesintaxrulesmayadverselyaffecttheCompany’sfuturefinancialresultsorthewaymanagementconductsitsbusiness.Forexample,theCompanyholdsasignificantamountofcashoutsideoftheUnitedStates.AsofAugust31,2017,theCompanyhasnotprovidedforU.S.federalandstateincometaxesandforeignwithholdingtaxeson$137.5millionofundistributedearningsofcertainforeignsubsidiariessincetheseearningsareconsideredindefinitelyreinvestedoutsideoftheUnitedStates.TheCompany’sfuturefinancialresultsandliquiditymaybeadverselyaffectediftaxrulesregardingun-repatriatedearningschange,ifmanagementelectsforanyreasoninthefuturetorepatriate someorall of theforeignearningsthat werepreviouslydeemedtobeindefinitely reinvestedoutsideoftheU.S.suchasthefiscal year2016repatriationof$8.2milliondiscussedinNote12–IncomeTaxes,oriftheU.S.internationaltaxruleschangeaspartofcomprehensivetaxreformorothertaxlegislations.

The Company may not have sufficient cash to service its indebtedness or to pay cash dividends.

TheCompany’sdebtconsistsofarevolvingcreditfacilityandmanagementhasusedtheproceedsofthisrevolvingcreditfacilityprimarilyforstockrepurchases.Inaddition,theCompanyutilizedthisrevolvingcreditfacilityinfiscalyear2017tofundthepurchaseofandimprovementstoitsnewSanDiegoofficebuilding,whichhousesbothcorporateemployeesandemployeesintheCompany’sAmericassegment.Inordertoservicesuchdebt,theCompanyisrequiredtouseitsincomefromoperationstomakeinterestandprincipalpaymentsrequiredbythetermsoftheloanagreement.Inaddition,theCompany’sloanagreementincludescovenantstomaintaincertainfinancialratiosandtocomplywithotherfinancialterms,conditionsandcovenants.Also,theCompanyhashistoricallypaidoutalargepartofitsearningstostockholdersintheformofregularquarterlycashdividends.InDecember2016,theBoardofDirectorsdeclareda17%increaseintheregularquarterlycashdividend,increasingitfrom$0.42pershareto$0.49pershare.

TheCompanymayincursubstantialdebtinthefutureforacquisitionsorothergeneralbusinessorbusinessdevelopmentactivities.Inaddition,theCompanymaycontinuetouseavailablecashbalancestoexecutesharerepurchasesunderapprovedsharebuy-backplans. Totheextentthat theCompanyisrequiredtoseekadditional financingtosupportcertainoftheseactivities,suchfinancingmaynotbeavailableinsufficientamountsorontermsacceptabletotheCompany.IftheCompanyisunabletoobtainsuchfinancingorto service its existing or future debt with its operating income, or if available cash balances are affected by future business performance, liquidity, capital needs, alternativeinvestmentopportunitiesordebtcovenants,theCompanycouldberequiredtoreduce,suspendoreliminateitsdividendpaymentstoitsstockholders.

The Company’s business development activities may not be successful.

TheCompanymayincreasegrowththroughbusinessdevelopmentactivities suchasacquisitions, joint ventures, licensingand/orother strategic partnershipsintheU.S.andinternationally.However,iftheCompanyisnotabletoidentify,acquireandsuccessfullyintegrateacquiredproductsorcompaniesorsuccessfullymanagejointventuresorotherstrategicpartnerships,theCompanymaynotbeabletomaximizetheseopportunities.Thefailuretoproperlymanagebusinessdevelopmentactivitiesbecauseofdifficultiesintheassimilation of operations and products, the diversion of management’s attention from other business concerns, the loss of key employees or other factors could materiallyadverselyaffecttheCompany’sbusiness,financialconditionandresultsofoperations.Inaddition,therecanbenoassurancethattheCompany’sbusinessdevelopmentactivitieswillbeprofitableattheirinceptionorthattheywillachievesaleslevelsandprofitabilitythatjustifytheinvestmentsmade.

Futureacquisitions,jointventuresorstrategicpartnershipscouldalsoresultintheincurrenceofdebt,potentiallydilutiveissuancesofequitysecurities, contingentliabilities,amortization expenses related to certain intangible assets, unanticipated regulatory complications and/or increased operating expenses, all of which could adversely affect theCompany’s results of operations and financial condition. In addition, to the extent that the economic benefits associated with any of the Company’s business developmentactivitiesdiminishinthefuture,theCompanymayberequiredtorecordimpairmentstogoodwill,intangibleassetsorotherassetsassociatedwithsuchactivities,whichcouldalsoadverselyaffecttheCompany’sbusiness,financialconditionandresultsofoperations.

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Item 1B . Unresolved Staff Comments

None.

Item 2 . Properties

Americas

TheCompanyownsandoccupiesanofficelocatedat9715BusinessparkAvenue,SanDiego,California92131,whichwaspurchasedinSeptember2016.Thebuildoutofthisnewofficebuildingandfacilitieswascompletedinlatefiscalyear2017.CorporateemployeesandemployeesintheCompany’sAmericassegmenttransitionedtothislocationduringAugust2017fromthepreviouslocationat1061CudahyPlace,SanDiego,California92110,whichtheCompanystillownsandutilizesasaplantfacility.TheCompanyleasesaregionalsalesofficeinMiami,Florida,aresearchanddevelopmentofficeinSummit,NewJerseyandofficespaceinToronto,Ontario,Canada.

EMEATheCompanyownsandoccupiesanofficeandplantfacility,consistingofoffice,plantandstoragespace,inMiltonKeynes,UnitedKingdom.Inaddition,theCompanyalsoleasesanotherofficeinUnitedKingdomandspaceforitsbranchofficesinGermany,France,Italy,Spain,PortugalandtheNetherlands.

Asia-Pacific

TheCompanyleasesofficespaceinEpping,NewSouthWales,Australia;Shanghai,China;andKualaLumpur,Malaysia.

Item 3 . Legal Proceedings

TheinformationrequiredbythisitemisincorporatedbyreferencetotheinformationsetforthinItem15ofPartIV,“Exhibits,FinancialStatementSchedules”Note11—CommitmentsandContingencies,intheaccompanyingnotestotheconsolidatedfinancialstatementsincludedinthisreport.

Item 4 . Mine Safety Disclosures

Notapplicable.

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Executive Officers of the Registrant

Thefollowingtablesetsforththenames,ages,fiscalyearelectedtocurrentpositionandcurrenttitlesoftheexecutiveofficersoftheCompanyasofAugust31,2017:

Name, Age and Year Elected to Current Position TitleGarryO.Ridge 61 1997 PresidentandChiefExecutiveOfficerJayW.Rembolt 66 2008 VicePresident,Finance,TreasurerandChiefFinancialOfficerStanleyA.Sewitch 64 2012 VicePresident,GlobalOrganizationDevelopmentRichardT.Clampitt 62 2014 VicePresident,GeneralCounselandCorporateSecretaryMichaelL.Freeman 64 2016 ChiefStrategyOfficerGeoffreyJ.Holdsworth 55 1997 ManagingDirector,Asia-PacificWilliamB.Noble 59 1996 ManagingDirector,EMEAStevenA.Brass 51 2016 DivisionPresident,TheAmericas

Mr.RidgejoinedtheCompany’sAustraliansubsidiary,WD-40Company(Australia)Pty.Limited,in1987asManagingDirector.HeheldseveralseniormanagementpositionspriortohiselectionasChiefExecutiveOfficerin1997.

Mr.RemboltjoinedtheCompanyin1997asManagerofFinancialServices.HewaspromotedtoControllerin1999andtoVicePresident,Finance/Controllerin2001.HewasthennamedVicePresident,FinanceandChiefFinancialOfficerin2008.

Mr.SewitchjoinedtheCompanyin2012asVicePresident, Global OrganizationDevelopment. Prior tojoiningtheCompany,Mr. Sewitchwasafounderof fourbusinesses,includingahumanresourcesandorganizationalconsultingfirm(HRGInc.)whichheledfrom1989untiljoiningtheCompany.

Mr.ClampittjoinedtheCompanyin2014asVicePresident,GeneralCounselandCorporateSecretary.HewasnamedasCorporateSecretaryonOctober15,2013.HehasbeenlicensedtopracticelawintheStateofCaliforniasince1981.PriortojoiningtheCompany,Mr.ClampittservedasapartneratGordon&ReesLLPfrom2002through2013.

Mr.FreemanjoinedtheCompanyin1990asDirectorofMarketingandwaspromotedtoDirectorofOperationsin1994.HebecameVicePresident,AdministrationandChiefInformationOfficerin1996,andwasnamedSeniorVicePresident,Operationsin2001.HethenservedasDivisionPresident,TheAmericas,from2002until2016whenhewasappointedtohiscurrentpositionasChiefStrategyOfficer.

Mr.HoldsworthjoinedtheCompany’sAustraliasubsidiary,WD-40Company(Australia)Pty.Limited,in1996asGeneralManagerandwaspromotedtohiscurrentpositionofManagingDirector,Asia-PacificandasaDirectorofWD-40Company(Australia)Pty.Limitedin1997.

Mr.NoblejoinedtheCompany’sAustraliasubsidiary,WD-40Company(Australia)Pty.Limited,in1993asInternationalMarketingManagerfortheAsiaRegion.HewasthenpromotedtohiscurrentpositionofManagingDirector,EMEAandasaDirectoroftheCompany’sU.K.subsidiary,WD-40CompanyLimited,in1996.

Mr. Brass joinedtheCompanyin1991as International AreaManager at theCompany’s U.K.subsidiaryandhassinceheld several management positions includingCountryManagerinGermany,DirectorofContinentalEurope,EuropeanSalesDirector,andmostrecentlyEuropeanCommercialDirectorpriortohispromotiontoDivisionPresident,TheAmericas,in2016.

AllexecutiveofficersholdofficeatthediscretionoftheBoardofDirectors.

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PART II

Item 5 . Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information

TheCompany’scommonstockistradedontheNASDAQGlobalSelectMarket.ThefollowingtablesetsforththehighandlowsalespricespershareoftheCompany’scommonstockforeachofthequarterlyperiodsindicatedasreportedbytheNASDAQGlobalSelectMarket.

Fiscal Year 2017 Fiscal Year 2016High Low Dividend High Low Dividend

FirstQuarter $ 121.10 $ 101.35 $ 0.42 $ 101.00 $ 81.68 $ 0.38SecondQuarter $ 119.90 $ 100.65 $ 0.49 $ 109.37 $ 94.00 $ 0.42ThirdQuarter $ 113.25 $ 100.60 $ 0.49 $ 111.99 $ 99.32 $ 0.42FourthQuarter $ 114.10 $ 103.80 $ 0.49 $ 125.00 $ 109.58 $ 0.42

OnOctober18,2017,thelastreportedsalespriceoftheCompany’scommonstockontheNASDAQGlobalSelectMarketwas$114.70pershare,andtherewere13,964,343sharesofcommonstockoutstandingheldbyapproximately680holdersofrecord.

Dividends

TheCompanyhashistoricallypaidregularquarterlycashdividendsonitscommonstock.InDecember2016,theBoardofDirectorsdeclareda17%increaseintheregularquarterlycashdividend,increasingitfrom$0.42pershareto$0.49pershare.OnOctober10,2017,theCompany’sBoardofDirectorsdeclaredacashdividendof$0.49persharepayableonOctober31,2017toshareholdersofrecordonOctober20,2017.

TheBoardofDirectorsoftheCompanypresentlyintendstocontinuethepaymentofregularquarterlycashdividendsontheCompany’scommonstock.TheCompany’sabilitytopaydividendscouldbeaffectedbyfuturebusinessperformance,liquidity,capitalneeds,alternativeinvestmentopportunitiesanddebtcovenants.

Purchases of Equity Securities By the Issuer and Affiliated Purchasers

OnJune21,2016,theCompany’sBoardofDirectorsapprovedasharebuy-backplan.Undertheplan,whichbecameeffectiveonSeptember1,2016,theCompanyisauthorizedtoacquireupto$75.0millionofitsoutstandingsharesthroughAugust31,2018.ThetimingandamountofrepurchasesarebasedontermsandconditionsasmaybeacceptabletotheCompany’sChiefExecutiveOfficerandChiefFinancial Officerandincompliancewithall lawsandregulationsapplicablethereto .DuringtheperiodfromSeptember1,2016throughAugust31,2017,theCompanyrepurchased290,573sharesatatotalcostof$31.1millionunderthis$75.0millionplan.

ThefollowingtableprovidesinformationwithrespecttoallpurchasesmadebytheCompanyduringthethreemonthsendedAugust31,2017.Allpurchaseslistedbelowweremadeintheopenmarketatprevailingmarketprices.PurchasetransactionsbetweenJune1,2017andJuly13,2017wereexecutedpursuanttotradingplansadoptedbytheCompanypursuanttoRule10b5-1undertheSecuritiesExchangeActof1934,asamended.

Total Number Maximum of Shares Dollar Value of Total Purchased as Part Shares that May Number of Average of Publicly Yet Be Purchased Shares Price Paid Announced Plans Under the Plans Purchased Per Share or Programs or Programs

PeriodJune1-June30 12,200 $ 109.96 12,200 $ 47,430,543July1-July31 9,500 $ 107.58 9,500 $ 46,408,333August1-August31 23,900 $ 105.32 23,900 $ 43,890,766

Total 45,600 $ 107.03 45,600

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Item 6 . Selected Financial Data

The following data has been derived fromthe Company’s audited consolidated financial statements. The data should be read in conjunction with such consolidated financialstatementsandotherfinancialinformationincludedelsewhereinthisreport(inthousands,exceptpershareamounts):

As of and for the Fiscal Year Ended August 31,2017 2016 2015 2014 2013

Netsales $ 380,506 $ 380,670 $ 378,150 $ 382,997 $ 368,548Costofproductssold 166,621 166,301 177,972 184,144 179,385

Grossprofit 213,885 214,369 200,178 198,853 189,163Operatingexpenses 137,976 143,021 134,788 135,116 132,526

Incomefromoperations 75,909 71,348 65,390 63,737 56,637Interestandother(expense)income,net (1,287) 1,441 (2,280) (778) 230

Incomebeforeincometaxes 74,622 72,789 63,110 62,959 56,867Provisionforincometaxes 21,692 20,161 18,303 19,213 17,054

Netincome $ 52,930 $ 52,628 $ 44,807 $ 43,746 $ 39,813

Earningspercommonshare:Basic $ 3.73 $ 3.65 $ 3.05 $ 2.89 $ 2.55Diluted $ 3.72 $ 3.64 $ 3.04 $ 2.87 $ 2.54

Dividendspershare $ 1.89 $ 1.64 $ 1.48 $ 1.33 $ 1.22Weighted-averagesharesoutstanding-

diluted 14,123 14,379 14,649 15,148 15,619Totalassets $ 369,717 $ 339,668 $ 339,257 $ 347,680 $ 323,064Long-termobligations(1) $ 154,907 $ 140,579 $ 133,427 $ 26,354 $ 25,912

(1)Long-termobligationsincludelong-termdebt,deferredtaxliabilities,netandotherlong-termliabilities.

Item 7 . Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’sDiscussionandAnalysisofFinancial ConditionandResultsofOperations(“MD&A”)isdesignedtoprovidethereaderoftheCompany’sfinancial statementswithanarrativefromtheperspectiveofmanagementontheCompany’sfinancialcondition,resultsofoperations,liquidityandcertainotherfactorsthatmayaffectfutureresults.This MD&A includes the following sections: Overview, Highlights, Results of Operations, Performance Measures and Non-GAAP Reconciliations, Liquidity and CapitalResources,CriticalAccountingPolicies,RecentlyIssuedAccountingStandardsandRelatedParties.TheMD&Aisprovidedasasupplementto,andshouldbereadinconjunctionwith,theCompany’sauditedconsolidatedfinancialstatementsandtherelatednotesincludedinItem15ofthisreport.

Inordertoshowtheimpactofchangesinforeigncurrencyexchangeratesonourresultsofoperations,wehaveincludedconstantcurrencydisclosures,wherenecessary,intheOverviewand Results of Operations sections which follow. Constant currency disclosures represent the translation of our current fiscal year revenues and expenses fromthefunctional currencies of our subsidiaries to U.S. dollars using the exchange rates in effect for the corresponding period of the prior fiscal year. We use results on a constantcurrencybasisasoneofthemeasurestounderstandouroperatingresultsandevaluateourperformanceincomparisontopriorperiods.ResultsonaconstantcurrencybasisarenotinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(“non-GAAP”)andshouldbeconsideredinadditionto,notasasubstitutefor,resultspreparedinaccordancewithGAAP.

17

Overview

The Company

WD-40Company(“theCompany”),basedinSanDiego,California,isaglobalmarketingorganizationdedicatedtocreatingpositivelastingmemoriesbydevelopingandsellingproducts that solve problems in workshops, factories and homes around the world. We market our maintenance products and our homecare and cleaning products under thefollowingwell-knownbrands:WD-40®,3-IN-ONE®,GT85®,X-14®,2000Flushes®,CarpetFresh®,novac®,SpotShot®,1001®,Lava®andSolvol®.CurrentlyincludedintheWD-40brandaretheWD-40Multi-UseProductandtheWD-40Specialist®andWD-40BIKE®productlines.

Ourbrandsaresoldinvariouslocationsaroundtheworld.MaintenanceproductsaresoldworldwideinmarketsthroughoutNorth,CentralandSouthAmerica,Asia,Australia,Europe, theMiddleEast andAfrica. HomecareandcleaningproductsaresoldprimarilyinNorthAmerica, theUnitedKingdom(“U.K.”)andAustralia. Wesell ourproductsprimarilythroughmassretailandhomecenterstores,warehouseclubstores,grocerystores,hardwarestores,automotivepartsoutlets,sportretailers,independentbikedealers,onlineretailersandindustrialdistributorsandsuppliers.Highlights

ThefollowingsummarizesthefinancialandoperationalhighlightsforourbusinessduringthefiscalyearendedAugust31,2017:

· Consolidatednetsalesdecreased$0.2millionforfiscalyear2017comparedtothepriorfiscalyear.Changesinforeigncurrencyexchangerateshadanunfavorableimpactof$19.1milliononconsolidatednetsalesforfiscalyear2017.Thus,onaconstantcurrencybasis,netsaleswouldhaveincreasedby$18.9million,or5%,forfiscalyear2017comparedtothepriorfiscalyear.ThisunfavorableimpactfromchangesinforeigncurrencyexchangeratesmainlycamefromourEMEAsegment,whichaccountedfor36%ofourconsolidatedsalesforthefiscalyearendedAugust31,2017.

· ConsolidatednetsalesfortheWD-40Specialistproductlinewere$25.8millionwhichisa20%increaseforfiscalyear2017comparedtothepriorfiscalyear.AlthoughtheWD-40Specialist productlineisexpectedtoprovidetheCompanywithlong-termgrowthopportunities, wewill seesomevolatility insaleslevelsfromperiodtoperiodduetothetimingofpromotionalprograms,thebuildingofdistribution,andvariousotherfactorsthatcomewithbuildinganewproductline.

· Grossprofitasapercentageofnetsalesdecreasedto56.2%forfiscalyear2017comparedto56.3%forthepriorfiscalyear.

· Consolidated net income increased$0.3million, or 1%, for fiscal year 2017 compared to the prior fiscal year. Changes in foreign currency exchange rates had anunfavorableimpactof$3.5milliononconsolidatednetincomeforfiscalyear2017.Thus,onaconstantcurrencybasis,netincomewouldhaveincreasedby$3.8million,or7%,forfiscalyear2017comparedtothepriorfiscalyear.

· Dilutedearningspercommonshareforfiscalyear2017were$3.72versus$3.64inthepriorfiscalyear.

· Sharerepurchaseswereexecutedunderourcurrent$75.0millionsharebuy-backplan,whichwasapprovedbytheCompany’sBoardofDirectorsinJune2016andbecameeffective onSeptember1, 2016.DuringtheperiodfromSeptember1, 2016 throughAugust31,2017,theCompanyrepurchased290,573 shares atanaveragepriceof$107.04pershare,foratotalcostof$31.1million.

Ourstrategicinitiativesandtheareaswherewewillcontinuetofocusourtime,talentandresourcesinfutureperiodsinclude:(i)maximizingWD-40multi-useproductsalesthroughgeographicexpansionandincreasedmarketpenetration;(ii)leveragingtheWD-40brandbygrowingtheWD-40Specialistproductline;(iii)leveragingthestrengthsoftheCompanythroughbroadenedproductandrevenuebase;(iv)attracting,developingandretainingtalentedpeople;and(v)operatingwithexcellence.

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Results of Operations

Fiscal Year Ended August 31, 2017 Compared to Fiscal Year Ended August 31, 2016

Operating Items

Thefollowingtablesummarizesoperatingdataforourconsolidatedoperations(inthousands,exceptpercentagesandpershareamounts):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars PercentNetsales:Maintenanceproducts $ 342,295 $ 339,974 $ 2,321 1%Homecareandcleaningproducts 38,211 40,696 (2,485) (6)%

Totalnetsales 380,506 380,670 (164)  -Costofproductssold 166,621 166,301 320  -

Grossprofit 213,885 214,369 (484)  -Operatingexpenses 137,976 143,021 (5,045) (4)%

Incomefromoperations $ 75,909 $ 71,348 $ 4,561 6%Netincome $ 52,930 $ 52,628 $ 302 1%Earningspercommonshare-diluted $ 3.72 $ 3.64 $ 0.08 2%

Net Sales by Segment

Thefollowingtablesummarizesnetsalesbysegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars Percent

Americas $ 184,929 $ 191,397 $ (6,468) (3)%EMEA 136,771 135,235 1,536 1%Asia-Pacific 58,806 54,038 4,768 9%Total $ 380,506 $ 380,670 $ (164)  -

19

AmericasThefollowingtablesummarizesnetsalesbyproductlinefortheAmericassegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars PercentMaintenanceproducts $ 159,167 $ 163,655 $ (4,488) (3)%Homecareandcleaningproducts 25,762 27,742 (1,980) (7)%Total $ 184,929 $ 191,397 $ (6,468) (3)%

% of consolidated net sales 49% 50%

SalesintheAmericassegment,whichincludestheU.S.,CanadaandLatinAmerica,decreasedto$184.9million,down$6.5million,or3%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.ChangesinforeigncurrencyexchangeratesdidnothaveamaterialimpactonsalesfortheAmericassegmentfromperiodtoperiod.

SalesofmaintenanceproductsintheAmericassegmentdecreased$4.5million,or3%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.Thissalesdecrease was mainly driven by lower sales of maintenance products in the U.S., which declined 5%fromperiod to period. This decline in sales fromperiod to period wasprimarilyduetodecreasedsalesassociatedwithalowerlevelofpromotionalactivitiesandthetimingofcustomerordersfortheWD-40Multi-UseProduct.Thislowerlevelofsales in the U.S. was also attributable to efforts of certain of our customers in late fiscal year 2017 to more closely manage their inventory levels. The sales decrease ofmaintenanceproductsintheU.S.waspartiallyoffsetbyincreasedsalesofsuchproductsinCanadaandLatinAmerica,whichincreased10%and4%,respectively,fromperiodtoperiod.ThesalesincreaseinCanadawasprimarilyduetoaddeddistributionoftheWD-40Bikeproductaswellashighersalesduetosuccessfulpromotionalprograms,whichwaspartiallydrivenbyimprovingmarketandeconomicconditions,includingthosewithintheindustrialchannelinWesternCanadaasaresultofincreasedactivitylevelsintheoilindustry.ThesalesincreaseinLatinAmericawasprimarilyduetoimprovedeconomicconditionsinPuertoRicoinfiscalyear2017comparedtothepriorfiscalyear,aswell as new distribution and successful promotional programs in several countries in South America. Although sales in Puerto Rico may decline in future periods duringhurricane-relatedrecoveryeffortsinresponsetoHurricaneMaria,whichmadelandfallinPuertoRicoinSeptember2017,salesinPuertoRicoarenotmaterialtotheoverallsalesoftheCompany.TheoveralldecreaseinsalesofWD-40Multi-UseProductintheAmericassegmentwaspartiallyoffsetbyhighersalesoftheWD-40Specialistproductline,whichwereup$1.5million,or13%,fromperiodtoperiodduetonewdistribution,particularlyofcertainnewproductswithinthisproductlineduringfiscalyear2017.

SalesofhomecareandcleaningproductsintheAmericassegmentdecreased$2.0million,or7%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.ThissalesdecreasewasdrivenprimarilybyadecreaseinsalesoftheX-14,SpotShotandLavabrandproductsintheU.S.,whichweredown13%,9%and9%,respectively,fromperiodtoperiod.Whileeachofourhomecareandcleaningproductscontinuetogeneratepositivecashflows,wehavecontinuedtoexperiencedecreasedorflatsalesformanyoftheseproductsprimarilyduetolostdistribution,reducedproductofferings,competition,categorydeclinesandthevolatilityofordersfrompromotionalprogramswithcertainofourcustomers,particularlythoseinthewarehouseclubandmassretailchannels.

FortheAmericassegment,81%ofsalescamefromtheU.S.,and19%ofsalescamefromCanadaandLatinAmericacombinedforthefiscalyearendedAugust31,2017comparedtothepriorfiscalyearwhen83%ofsalescamefromtheU.S.,and17%ofsalescamefromCanadaandLatinAmericacombined.

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EMEA

ThefollowingtablesummarizesnetsalesbyproductlinefortheEMEAsegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars PercentMaintenanceproducts $ 131,562 $ 129,217 $ 2,345 2%Homecareandcleaningproducts 5,209 6,018 (809) (13)%Total(1) $ 136,771 $ 135,235 $ 1,536 1%

% of consolidated net sales 36% 36%

(1) WhiletheCompany’sreportingcurrencyisU.S.Dollar,thefunctionalcurrencyofourU.K.subsidiary,theentityinwhichtheEMEAresultsaregenerated,isPoundSterling.AlthoughthefunctionalcurrencyofthissubsidiaryisPoundSterling,approximately45%ofitssalesaregeneratedinEuroand25%aregeneratedinU.S.Dollar.Asaresult,thePoundSterlingsalesandearningsfortheEMEAsegmentcanbenegativelyorpositivelyimpactedfromperiodtoperiod upon translation fromthesecurrencies dependingonwhether theEuroandU.S. Dollar areweakeningorstrengtheningagainstthePoundSterling.

SalesintheEMEAsegment,whichincludesEurope,theMiddleEast,AfricaandIndia,increasedto$136.8million,up$1.5million,or1%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.ChangesinforeigncurrencyexchangerateshadanunfavorableimpactonsalesfortheEMEAsegmentfromperiodtoperiod.SalesforthefiscalyearendedAugust31,2017translatedattheexchangeratesineffectforthepriorfiscalyearwouldhavebeen$155.9millionintheEMEAsegment.Thus,onaconstantcurrencybasis,saleswouldhaveincreasedby$20.6million,or15%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.

ThecountriesinEuropewherewesell throughadirect salesforceincludetheU.K.,Italy, France, Iberia(whichincludesSpainandPortugal) andtheGermanicssalesregion(whichincludesGermany,Austria,Denmark,Switzerland,BelgiumandtheNetherlands).Overall,salesfromthedirectmarketsincreased$1.3million,or1%,forthefiscalyearendedAugust31,2017comparedtofiscalyear2016.ChangesinforeigncurrencyexchangerateshadanunfavorableimpactonsalesinthedirectmarketsinEMEAfromperiodtoperiod.Onaconstantcurrencybasis,salesinthedirectmarketswouldhaveincreasedby15%fromfiscalyear2017comparedtothepriorfiscalyear.

WeexperiencedsalesincreasesthroughoutmostoftheEMEAdirectmarketsforthefiscalyearendedAugust31,2017comparedtothepriorfiscalyearprimarilyduetoasalesincreaseof$3.5million,or6%,intheEuro-baseddirectmarketsasaresult ofcontinuedgrowthofthebasebusinessandhighersalesofWD-40Specialist .SalesofWD-40SpecialistintheEuro-baseddirectmarketsincreased$1.6million,or36%,fromperiodtoperiodasaresultofexpandeddistributioninmostmarkets,butparticularlyinFrance.AlthoughsalesintheEuro-baseddirectmarketsalsobenefitedfromthestrengtheningoftheEuroagainstthePoundSterling,thefunctionalcurrencyofourU.K.subsidiary,theywereimpactedintheopposite directionbyapproximatelythesameamountduetheweakeningof thePoundSterlingagainst theU.S.Dollar fromperiodtoperiod.ThesalesincreaseintheEuro-baseddirectmarketswaspartiallyoffsetbyasalesdecreaseintheU.K.of$2.2million,or8%,asaresultoftheunfavorableimpactsofchangesinforeigncurrencyexchangerates,specificallythePoundSterlingagainsttheU.S.Dollar.Infunctionalcurrency,salesintheU.K.increasedby4%primarilyduetoafavorableshiftinproductmixwithintheWD-40Multi-UseProductfromperiodtoperiod.Salesfromdirectmarketsaccountedfor65%oftheEMEAsegment’ssalesforthefiscalyearendedAugust31,2017comparedto66%oftheEMEAsegment’ssalesforthepriorfiscalyear.

TheregionsintheEMEAsegmentwherewesellthroughlocaldistributorsincludetheMiddleEast,Africa,India,EasternandNorthernEurope.Salesinthedistributormarketsincreased$0.2million, or 1%, for the fiscal year endedAugust 31, 2017compared to the prior fiscal yearprimarilydueincreased sales of WD-40Multi-Use Product in theEasternEuropeandIndia.Overall, sales in the distributor markets were increasedfromperiodto periodprimarily dueto the continuedgrowthof the base business in keymarkets.Thedistributormarketsaccountedfor35%oftheEMEAsegment’stotalsalesforthefiscalyearendedAugust31,2017,comparedto34%forthepriorfiscalyear.

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Asia-Pacific

ThefollowingtablesummarizesnetsalesbyproductlinefortheAsia-Pacificsegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars PercentMaintenanceproducts $ 51,567 $ 47,102 $ 4,465 9%Homecareandcleaningproducts 7,239 6,936 303 4%Total $ 58,806 $ 54,038 $ 4,768 9%

% of consolidated net sales 15% 14%

SalesintheAsia-Pacificsegment,whichincludesAustralia,ChinaandothercountriesintheAsiaregion,increasedto$58.8million,up$4.8million,or9%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscal year .Althoughchanges in foreigncurrencyexchangerates didnot havea material impact onsales in theAsia-Pacificsegmentfromperiodtoperiod,fluctuationsinforeigncurrencyexchangeratesimpactedsalesinbothChinaandAustralia.

SalesinAsia,whichrepresented70%ofthetotalsalesintheAsia-Pacificsegment,increased$3.7million,or10%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.SalesintheAsiadistributormarketsincreased$2.2million,or9%,primarilyattributabletosuccessfulpromotionalprogramsandexpandeddistributionintheAsiandistributormarkets,particularlythoseinthePhilippines,BangladeshandMalaysia,fromperiodtoperiod.SalesinChinaincreased$1.5million,or11%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.ChangesinforeigncurrencyexchangerateshadanunfavorableimpactonsalesinChina.Onaconstantcurrencybasis,saleswouldhaveincreasedby16%fromperiodtoperiodprimarilyduetonewdistributionandcontinuedgrowthinsalestoourlargestcustomersthroughoutChina.

SalesinAustraliaincreasedby$1.1million,or6%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.ChangesinforeigncurrencyexchangerateshadafavorableimpactonAustraliasales.Onaconstantcurrencybasis,saleswouldhaveincreasedby2%forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyearprimarilyduetoincreaseddistributionandhighersaleslevelsresultingfromsuccessfulpromotionalprogramsaswellascontinuedgrowthofourbasebusiness.

Gross Profit

Grossprofitdecreasedto$213.9millionforthefiscalyearendedAugust31,2017comparedto$214.4millionforthepriorfiscalyear.Asapercentageofnetsales,grossprofitdecreasedto56.2%forthefiscalyearendedAugust31,2017comparedto56.3%forthepriorfiscalyear.

Grossmarginwasnegativelyimpactedby1.0percentagepointsfromperiodtoperiodduetounfavorablenetchangesinthecostsofpetroleum-basedspecialtychemicalsandaerosolcans,primarilyinourEMEAsegment.TheunfavorableimpactsinourEMEAsegmentwereprimarilyduetoincreasedcostsofpetroleum-basedspecialtychemicalsfromperiodtoperiod.Whilethecostsofpetroleum-basedspecialtychemicalsforourEMEAsegmentaresourcedinPoundSterling,theunderlyinginputsaredenominatedinU.S.Dollars.Asaresult,theoverallstrengtheningoftheU.S.DollaragainstthePoundSterlingfromperiodtoperiodresultedinasignificantincreaseincostofgoodsinPoundSterling.Thereisoftenadelayofonequarterormorebeforechangesinrawmaterialcostsimpactcostofproductssoldduetoproductionandinventorylifecycles.Duetothevolatility of thepriceof crudeoil, it is uncertainthelevel towhichgrossmarginwill beimpactedbysuchcosts infutureperiods. Inaddition, thecombinedeffects ofunfavorablesalesmixchangesandothermiscellaneouscostsnegativelyimpactedgrossmarginby0.4percentagepointsprimarilyduetoanunfavorableshiftinproductmixasaresultofahigherportionofsalesintheAmericassegmentbeingmadetolowermarginmaintenanceproductsfromperiodtoperiod.Grossmarginwasalsonegativelyimpactedby0.1percentagepointsfromperiodtoperiodprimarilyduetohigherwarehousingandin-boundfreightcostsintheAmericassegment.

Theseunfavorableimpactstogrossmarginwerealmostcompletelyoffsetbychangesinforeigncurrencyexchangerates,whichpositivelyimpactedgrossmarginby1. 3percentagepointsduetothefluctuationsintheexchangeratesforboththeEuroandU.S.DollaragainstthePoundSterlinginourEMEAsegmentfromperiodtoperiod.IntheEMEAsegment,themajorityofourcostofgoodssoldisdenominatedinPoundSterlingwhereassalesaregeneratedinPoundSterling,EuroandtheU.S.Dollar.The combined effect of the strengthening of both the Euro and U.S. Dollar against the Pound Sterling fromperiod to period caused an increase in our Pound Sterling sales,resultinginfavorableimpactstothegrossmargin.Inaddition,salespriceincreases

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intheEMEAsegmentoverthelasttwelvemonthsalsopositivelyimpactedgrossmarginby0.1percentagepointsfromperiodtoperiod.

Notethat ourgrossprofit andgrossmarginmaynotbecomparabletothoseofotherconsumerproduct companies, sincesomeofthesecompaniesincludeall costsrelatedtodistribution of their products in cost of products sold, whereas we exclude the portion associated with amounts paid to third parties for shipment to our customers fromourdistributioncentersandcontractmanufacturersandincludethesecostsinselling,generalandadministrativeexpenses.Thesecoststotaled$16.4millionand$16.1millionforthefiscalyearsendedAugust31,2017and2016,respectively.

Selling, General and Administrative Expenses

Selling,generalandadministrative(“SG&A”)expensesforthefiscalyearendedAugust31,2017decreased$3.2millionto$114.6millionfrom$117.8millionforthepriorfiscalyear.Asapercentageofnetsales,SG&Aexpensesdecreasedto30.1%forthefiscalyearendedAugust31,2017from30.9%forthepriorfiscalyear.ThedecreaseinSG&Aexpenseswasprimarilyattributabletofavorableimpactsduetochangesinforeigncurrencyexchangeratesandloweremployee-relatedcostsfromperiodtoperiod.Changesinforeigncurrencyexchangerateshadafavorableimpactof$5.4milliononSG&AexpensesforthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.Employee-relatedcosts,whichincludesalaries,incentivecompensation,profitsharing,stock-basedcompensationandotherfringebenefits,decreasedby$2.7millionprimarilyduetolowerearnedincentivecompensation, whichwaspartiallyoffset byincreasedheadcountandhigherstock-basedcompensationexpensefromperiodtoperiod.Theincreaseinstock-basedcompensationexpensewasduetotheaccelerationofexpenseof$0.8millionforcertainequityawardsgrantedduringthefirstquarteroffiscalyear2017underupdatedequity award agreements that include expanded accelerated vesting provisions in the event of retirement of the award recipients. T hese decreases were partially offset byincreasedcostsassociatedwithfreight,professionalservices,travelandmeetings,generalofficeoverheadanddepreciation,andothermiscellaneousexpensesfromperiodtoperiod.Freightcostsassociatedwithshippingproductstoourcustomersincreased$1.3millionprimarilyduetohighersalesvolumesintheEMEAsegmentfromperiodtoperiodaswellastheunfavorableimpactfromchangesinforeigncurrencyexchangeratesinourEuro-baseddirectmarketsfromperiodtoperiod.Professionalservicescostsincreased$1.1millionduetoincreaseduseofsuchservicesfromperiodtoperiod,primarilyintheAmericasandEMEAsegments.Travelandmeetingexpensesincreased$0.9millionduetoahigherleveloftravelexpensesassociatedwithvarioussalesmeetingsandactivitiesinsupportofourstrategicinitiatives.Inaddition,generalofficeoverheadanddepreciationexpenseincreased$0.7millionprimarilyduetohigherrentexpenseforcertainofficesthattheCompanyleasesaswellashigherdepreciationexpense,primarilyintheEMEAsegment.Othermiscellaneousexpenses,thelargestofwhichwererelatedtosalescommissionsandresearchanddevelopmentcosts,increasedby$0.9millionforthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.

Wecontinuedourresearchanddevelopmentinvestment,themajorityofwhichisassociatedwithourmaintenanceproducts,insupportofourfocusoninnovationandrenovationof our products. Research and development costs for the fiscal years ended August 31, 2017 and 2016 were $8.4 million and $7.7 million, respectively. Our research anddevelopmentteamengagesinconsumerresearch,productdevelopment,currentproductimprovementandtestingactivities.Thisteamleveragesitsdevelopmentcapabilitiesbypartneringwithanetworkofoutsideresourcesincludingourcurrentandprospectivesuppliers. Thelevelandtypesofexpensesincurredwithinresearchanddevelopmentcanvaryfromperiodtoperioddependinguponthetypesofactivitiesbeingperformed.

Advertising and Sales Promotion Expenses

AdvertisingandsalespromotionexpensesforthefiscalyearendedAugust31,2017decreased$1.8millionto$20.5millionfrom$22.3millionforthepriorfiscalyear.Asapercentageofnetsales,theseexpensesdecreasedto5.4%forthefiscalyearendedAugust31,2017from5.9%forthepriorfiscalyear.Changesinforeigncurrencyexchangerateshadafavorableimpactonsuchexpensesof$1.1millionfromperiodtoperiod.Thus,onaconstantcurrencybasis,advertisingandsalespromotionexpensesforfiscalyear2017wouldhavedecreasedby$0.7million,primarilyduetoalowerlevel ofpromotional programsandmarketingsupport intheAmericassegmentfromperiodtoperiod.Investmentinglobaladvertisingandsalespromotionexpensesforfiscalyear2018isexpectedtobenear6.0%ofnetsales.

Asapercentageofnetsales,advertisingandsalespromotionexpensesmayfluctuateperiodtoperiodbaseduponthetypeofmarketingactivitiesweemployandtheperiodinwhichthecostsareincurred.Totalpromotionalcostsrecordedasareductiontosaleswere$17.5millionand$16.1millionforthefiscalyearsendedAugust31,2017and2016,respectively.Therefore,ourtotalinvestmentinadvertisingandsalespromotionactivitiestotaled$38.0millionand$38.4millionforthefiscalyearsendedAugust31,2017and2016,respectively.

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Amortization of Definite-lived Intangible Assets Expense

Amortization of our definite-lived intangible assets remained relatively constant at $2.9 million and $3.0 million for the fiscal years ended August 31, 2017 and 2016,respectively.

Income from Operations by Segment

Thefollowingtablesummarizesincomefromoperationsbysegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2017 2016 Dollars Percent

Americas $ 48,303 $ 48,404 $ (101)  -EMEA 35,389 31,702 3,687 12%Asia-Pacific 16,765 15,162 1,603 11%Unallocatedcorporate(1) (24,548) (23,920) (628) 3%

$ 75,909 $ 71,348 $ 4,561 6%

(1) Unallocatedcorporateexpensesaregeneralcorporateoverheadexpensesnotdirectlyattributabletoanyoneoftheoperatingsegments.TheseexpensesarereportedseparatefromtheCompany’sidentifiedsegmentsandareincludedinSelling,GeneralandAdministrativeexpensesontheCompany’sconsolidatedstatementsofoperations.

Americas

IncomefromoperationsfortheAmericassegmentdecreasedto$48.3million,down$0.1million,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear,primarilyduetoa$6.5milliondecreaseinsalesandalowergrossmargin,whichwerealmostcompletelyoffsetbyloweroperatingexpenses.Asapercentageofnetsales,grossprofit for the Americas segment de creased from 55.1% to 54.4% period over period . This decrease in the gr oss margin was primarily due to the negative impactsof unfavorable sales mix changes as well as higher warehousing and in-bound freight costs fromperiod to period . These unfavorable impacts were partially offset by thecombinedpositiveimpactsofdecreasedcostsofpetroleum-basedspecialtychemicalsandaerosolcansaswellasalowerlevelofadvertising,promotionalandotherdiscountsthatwegavetoourcustomersfromperiodtoperiod.Operatingexpensesdecreased$4.8millionperiodoverperiodduetoloweremployee-relatedexpenses,primarilythoseassociatedwithearnedincentive compensation, anddecreasedadvertisingandsales promotionexpenses fromperiodtoperiod . Operatingincomeasa percentageofnet sales increasedfrom25.3%to26.1%periodoverperiod.

EMEA

IncomefromoperationsfortheEMEAsegmentincreasedto$35.4million,up$3.7million,or12%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear, primarily duetoa higher gross margin, lower operating expenses and a $1.5 million increase in sales.As a percentage of net sales, gross profit for the EMEAsegmentincreasedfrom58.7%to59.6%periodoverperiodprimarilyduetothecombinedpositiveimpactsoffavorablefluctuationsinforeigncurrencyexchangeratesandsalesmixchanges, whichwerepartiallyoffset bythenegativeimpactsofincreasedcostsofpetroleum-basedspecialtychemicalsandaerosolcansfromperiodtoperiod.Operatingexpenses decreased $1.6 million primarily due to the favorable impacts of fluctuations in foreign currency exchange rates and lower earned incentive compensation expense,whichwerepartiallyoffsetbyincreasedheadcountandotheremployee-relatedexpensesfromperiodtoperiod.Operatingincomeasapercentageofnetsalesincreasedfrom23.4%to25.9%periodoverperiod.

Asia-Pacific

IncomefromoperationsfortheAsia-Pacificsegmentincreasedto$16.8million,up$1.6 million,or11%,forthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear,primarilyduetoa$4.8millionincreaseinsales,whichwaspartiallyoffsetbyalowergrossmarginandanincreaseinoperatingexpenses.Asapercentageofnetsales,grossprofitfortheAsia-Pacificsegmentdecreasedfrom54.8%to54.2%periodoverperiodduetothecombinednegativeimpactsofincreasedcostsofpetroleum-basedspecialty chemicals andaerosol cansas well a higher level of advertising, promotional andother discounts that wegavetoourcustomers fromperiodtoperiod.Operatingexpenses increased $0.7 million period over period primarily due to higher employee-related expenses and information systems support costs . Operating income as apercentageofnetsalesincreasedfrom28.1%to28.5%periodoverperiod.

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Non-Operating Items

Thefollowingtablesummarizesnon-operatingincomeandexpensesforourconsolidatedoperations(inthousands):

Fiscal Year Ended August 31,2017 2016 Change

Interestincome $ 508 $ 683 $ (175)Interestexpense $ 2,582 $ 1,703 $ 879Otherincome $ 787 $ 2,461 $ (1,674)Provisionforincometaxes $ 21,692 $ 20,161 $ 1,531

Interest Income

InterestincomeremainedrelativelyconstantforthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.

Interest Expense

Interestexpenseincreased$0.9millionforthefiscalyearendedAugust31,2017comparedtothepriorfiscalyearprimarilyduetohigherinterestratesandanincreasedoutstandingbalanceonourrevolvingcreditfacilityperiodoverperiod.

Other Income

Otherincomedecreasedby$1.7millionforthefiscalyearendedAugust31,2017comparedtothepriorfiscalyearprimarilyduetolowernetforeigncurrencyexchangegainsfrom period to period. This significant decrease in foreign currency exchange gains was primarily due to the relativemovement in foreign currency exchange rates and thefluctuationofnon-functionalcurrencybalancesheetaccounts,particularlythoseassociatedwithourUKsubsidiary,duringthefiscalyearendedAugust31,2017comparedtothepriorfiscalyear.

Provision for Income Taxes

Theprovisionforincometaxeswas29.1%ofincomebeforeincometaxesforthefiscalyearendedAugust31,2017comparedto27.7%forthepriorfiscalyear.Theincreaseintheeffective incometaxrate fromperiodto periodwasprimarily drivenbyanimmaterial out-of-period correctionthat werecordedin the secondquarter of fiscal year 2017associatedwiththetaximpactsfromcertainunrealizedforeigncurrencyexchangelosses.

Net Income

Netincomewas$52.9million,or$3.72percommonshareonafullydilutedbasis,forfiscalyear2017comparedto$52.6million,or$3.64percommonshareonafullydilutedbasis,forthepriorfiscalyear.Changesinforeigncurrencyexchangeratesyearoveryearhadanunfavorableimpactof$3.5milliononnetincomeforfiscalyear2017.Thus,onaconstantcurrencybasis,netincomeforfiscalyear2017wouldhavebeen$56.4million.

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Fiscal Year Ended August 31, 2016 Compared to Fiscal Year Ended August 31, 2015

Operating Items

Thefollowingtablesummarizesoperatingdataforourconsolidatedoperations(inthousands,exceptpercentagesandpershareamounts):

Fiscal Year Ended August 31,

Change from Prior Year

2016 2015 Dollars PercentNetsales:Maintenanceproducts $ 339,974 $ 333,306 $ 6,668 2%Homecareandcleaningproducts 40,696 44,844 (4,148) (9)%

Totalnetsales 380,670 378,150 2,520 1%Costofproductssold 166,301 177,972 (11,671) (7)%

Grossprofit 214,369 200,178 14,191 7%Operatingexpenses 143,021 134,788 8,233 6%

Incomefromoperations $ 71,348 $ 65,390 $ 5,958 9%Netincome $ 52,628 $ 44,807 $ 7,821 17%Earningspercommonshare-diluted $ 3.64 $ 3.04 $ 0.60 20%

Net Sales by Segment

Thefollowingtablesummarizesnetsalesbysegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2016 2015 Dollars Percent

Americas $ 191,397 $ 187,344 $ 4,053 2%EMEA 135,235 136,847 (1,612) (1)%Asia-Pacific 54,038 53,959 79  -Total $ 380,670 $ 378,150 $ 2,520 1%

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AmericasThefollowingtablesummarizesnetsalesbyproductlinefortheAmericassegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2016 2015 Dollars PercentMaintenanceproducts $ 163,655 $ 156,937 $ 6,718 4%Homecareandcleaningproducts 27,742 30,407 (2,665) (9)%Total $ 191,397 $ 187,344 $ 4,053 2%

% of consolidated net sales 50% 50%

SalesintheAmericassegment,whichincludestheU.S.,CanadaandLatinAmerica,increasedto$191.4million,up$4.1million,or2%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015.ChangesinforeigncurrencyexchangeratesinCanadahadanunfavorableimpactonsalesfortheAmericassegmentfromperiodtoperiod.SalesforthefiscalyearendedAugust31,2016translatedattheexchangeratesineffectforfiscalyear2015wouldhavebeen$192.5millionintheAmericassegment.Thus,onaconstantcurrencybasis,saleswouldhaveincreasedby$5.2million,or3%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015.

SalesofmaintenanceproductsintheAmericassegmentincreased$6.7million,or4%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015.ThissalesincreasewasmainlydrivenbyhighersalesofmaintenanceproductsintheU.S.andLatinAmerica,whichincreased6%and3%,respectively,fromperiodtoperiod.ThesalesincreaseintheU.S.wasprimarilyduetoahigherlevelofpromotionalactivitiesforallmaintenanceproductsandtheaddeddistributionofWD-40EZReachFlexibleStrawproduct,whichwaslaunchedinlatefiscalyear2015.ThesalesincreaseinLatinAmericawasprimarilyduetothesuccessofcertainpromotionalprogramswhichwereconductedinthe secondquarter of fiscal year 2016, primarily those in MexicoandChile, as well as the continuedgrowthof the WD-40Multi-UseProduct throughout the Latin Americaregion.ThesalesincreasesintheU.S.andLatinAmericawerepartiallyoffsetbyasalesdecreaseinCanadaof14%,fromperiodtoperiod.Thisdecreasewasprimarilyduetolower sales associated with promotional programs, most of which was driven by unstable market and economic conditions, particularly in the industrial channel in WesternCanadaasaresultofreducedactivityintheoilindustry.Inaddition,salesinCanadawerenegativelyimpactedbyunfavorablechangesinforeigncurrencyexchangeratesformperiodtoperiod.AlsocontributingtotheoverallsalesincreaseofmaintenanceproductsintheAmericassegmentwashighersalesoftheWD-40Specialistproductline,whichwereup$1.1million,or10%,fromperiodtoperiodduetonewdistribution,particularlyofcertainnewproductswithinthisproductlineduringthefourthquarteroffiscalyear2016.

SalesofhomecareandcleaningproductsintheAmericassegmentdecreased$2.6million,or9%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015.ThissalesdecreasewasdrivenprimarilybyadecreaseinsalesofSpotShotcarpetstainremoverand2000Flushesautomatictoiletbowlcleaners,mostofwhichisrelatedtotheU.S.,of13%and7%,respectively.Whileeachofourhomecareandcleaningproductscontinuetogeneratepositivecashflows,wehavecontinuedtoexperiencedecreasedorflatsalesformanyoftheseproductsprimarilyduetolostdistribution,reducedproductofferings,competition,categorydeclinesandthevolatilityofordersfromandpromotionalprogramswithcertainofourcustomers,particularlythoseinthewarehouseclubandmassretailchannels.

FortheAmericassegment,83%ofsalescamefromtheU.S.,and17%ofsalescamefromCanadaandLatinAmericacombinedforthefiscalyearendedAugust31,2016comparedtofiscalyear2015when82%ofsalescamefromtheU.S.,and18%ofsalescamefromCanadaandLatinAmericacombined.

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EMEA

ThefollowingtablesummarizesnetsalesbyproductlinefortheEMEAsegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2016 2015 Dollars PercentMaintenanceproducts $ 129,217 $ 129,730 $ (513)  -Homecareandcleaningproducts 6,018 7,117 (1,099) (15)%Total(1) $ 135,235 $ 136,847 $ (1,612) (1)%

% of consolidated net sales 36% 36%

(1) WhiletheCompany’sreportingcurrencyisU.S.Dollar,thefunctionalcurrencyofourU.K.subsidiary,theentityinwhichtheEMEAresultsaregenerated,isPoundSterling.AlthoughthefunctionalcurrencyofthissubsidiaryisPoundSterling,approximately45%ofitssalesaregeneratedinEuroand25%aregeneratedinU.S.Dollar.Asaresult,thePoundSterlingsalesandearningsfortheEMEAsegment can be negatively or positively impacted fromperiod to period upon translation fromthese currencies depending on whether the Euro and U.S. Dollar are weakening orstrengtheningagainstthePoundSterling.

SalesintheEMEAsegment,whichincludesEurope,theMiddleEast,AfricaandIndia,decreasedto$135.2million,down$1.6million,or1%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015.ChangesinforeigncurrencyexchangerateshadanunfavorableimpactonsalesfortheEMEAsegmentfromperiodtoperiod.Salesforthefiscal year endedAugust 31, 2016translated at the exchange rates in effect for fiscal year 2015would have been$146.5 million in the EMEAsegment. Thus, on a constantcurrencybasis,saleswouldhaveincreasedby$9.7million,or7%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015.

Thecountries inEMEAwherewesell throughadirect salesforceincludetheU.K., Italy, France, Iberia (whichincludesSpainandPortugal) andtheGermanicssalesregion(whichincludesGermany, Austria, Denmark, Switzerland, BelgiumandtheNetherlands). Overall, salesfromdirect markets increased$1.2million, or 1%,for thefiscal yearendedAugust31,2016comparedtofiscalyear2015.ChangesinforeigncurrencyexchangerateshadanunfavorableimpactonsalesinthedirectmarketsinEMEAfromperiodtoperiod.Onaconstantcurrencybasis,salesinthedirectmarketswouldhaveincreasedby10%fromfiscalyear2016comparedtofiscalyear2015.

WeexperiencedsalesincreasesthroughoutmostoftheEMEAdirectmarketsforthefiscalyearendedAugust31,2016comparedtofiscalyear2015,withpercentageincreasesinsalesasfollows:theGermanicsregion,10%;Italy,9%;andFrance,1%.SalesincreasesinthesedirectmarketswereprimarilyduetoincreasedsalesoftheWD-40Multi-UseProduct, particularlyintheGermanicsregion.SalesintheGermanicsincreasedfromperiodtoperiodduetoachangeinthedistributionmodel forthedo-it-yourself(DIY)channelthatwemadeforthisregioninfiscalyear2015.Inthethirdquarteroffiscalyear2015,weshiftedawayfromadistributionmodelforthischannelwherewesoldproductthroughalargewholesalecustomerwhothensuppliedvariousretailcustomerstoonewhereweselldirecttotheseretailcustomers.Duetothesuccessfulbuildofourdirect customerbaseinthis newmodel infiscal year 2016,sales inthis regionwerepositivelyimpactedfromperiodtoperiod. TheincreasedsalesintheseregionswerepartiallyoffsetbysalesdecreasesintheU.K.andIberiaof6%and1%,respectively.SalesintheU.K.decreasedfromperiodtoperiodprimarilyduetodecreaseddistributionofour1001brandintheretailchannelfromperiodtoperiod.SalesgeneratedinEurointhedirectmarketsalsoresultedinslightlyhigherPoundSterlingsalesinfiscalyear2016duethestrengtheningoftheEuroagainstthePoundSterlingfromperiodtoperiod.TheaverageexchangeratefortheEuroagainstthePoundSterlingincreasedfrom0.7497to0.7637, or 2%, fromperiod to period.Alsocontributing to the overall sales increase in the direct markets were increased sales of the WD-40 Specialist product line of $1.9million,or45%,fromperiodtoperiodduetoexpandeddistribution.Salesfromdirectmarketsaccountedfor66%oftheEMEAsegment’ssalesforfiscalyearendedAugust31,2016comparedto63%oftheEMEAsegment’ssalesforfiscalyear2015.

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TheregionsintheEMEAsegmentwherewesellthroughlocaldistributorsincludetheMiddleEast,Africa,India,EasternandNorthernEurope.Salesinthedistributormarketsdecreased$2.8million,or6%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015primarilyduetoan11%decreaseinsalesinRussiaasaresultof theunstablemarketconditionsinEasternEuropewhichstartedinthethirdquarterofourfiscalyear2015.AlthoughthemarketconditionsinRussiabegantostabilizeinfiscalyear2016,oursalesdidnotreturninfiscalyear2016tothelevelsthatweexperiencedpriortothethirdquarteroffiscalyear2015.Saleswerealsonegativelyimpactedinfiscalyear2016bycontinuedpoliticalandeconomicinstabilityinothercountriesinthedistributormarkets.SinceahighpercentageofsalesinthedistributormarketsintheEMEAsegmentaregeneratedinU.S.Dollars,therewereinsignificantimpactsduetochangesintheforeigncurrencyexchangeratesfromperiodtoperiod.Thedistributormarketsaccountedfor34%oftheEMEAsegment’stotalsalesforthefiscalyearendedAugust31,2016,comparedto37%forfiscalyear2015.

Asia-Pacific

ThefollowingtablesummarizesnetsalesbyproductlinefortheAsia-Pacificsegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2016 2015 Dollars PercentMaintenanceproducts $ 47,102 $ 46,639 $ 463 1%Homecareandcleaningproducts 6,936 7,320 (384) (5)%Total $ 54,038 $ 53,959 $ 79  -

% of consolidated net sales 14% 14%

SalesintheAsia-Pacificsegment,whichincludesAustralia,ChinaandothercountriesintheAsiaregionremainedconstantat$54.0millionforeachofthefiscalyearsendedAugust31,2016and2015.ChangesinforeigncurrencyexchangerateshadanunfavorableimpactonsalesfortheAsiaPacificsegmentfromperiodtoperiod.SalesforthefiscalyearendedAugust31,2016translatedattheexchangeratesineffectforfiscalyear2015wouldhavebeen$56.8millionintheAsia-Pacificsegment.Thus,onaconstantcurrencybasis,saleswouldhaveincreasedby$2.8million,or5%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015.

SalesinAsia,whichrepresented69%ofthetotalsalesintheAsia-Pacificsegment,increased$0.8million,or2%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015.SalesintheAsiadistributormarketsincreased$0.7million,or3%,fromperiodtoperiod,primarilyattributabletoincreaseddistributionresultingfromthesuccessofcertainsignificant promotionalprogramsfortheWD-40Multi-UseProductintheAsiandistributormarkets, particularlythoseinVietnam,SriLanka,andThailand.AlthoughsalesinChinaremainedrelativelyconstant at $13.3millionand$13.2millionfor thefiscal yearsendedAugust 31, 2016and2015,respectively, changesinforeigncurrencyexchangerateshadanunfavorableimpactonsalesinChina.Onaconstantcurrencybasis,saleswouldhaveincreasedby7%fromperiodtoperiodprimarilyduetoincreaseddistribution,particularlyinSouthernChina.

SalesinAustraliadecreasedby$0.8million,or4%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015.ChangesinforeigncurrencyexchangerateshadanunfavorableimpactonAustraliasales.Onaconstantcurrencybasis,saleswouldhaveincreasedby7%forthefiscalyearendedAugust31,2016comparedtofiscalyear2015primarilyduetoincreaseddistributionandhighersaleslevelsresultingfromsuccessfulpromotionalprogramsaswellascontinuedgrowthofourbasebusiness.

Gross Profit

Grossprofit increasedto$214.4millionfor thefiscal year endedAugust 31, 2016comparedto$200.2millionfor fiscal year 2015. Asapercentageof net sales, grossprofitincreasedto56.3%forthefiscalyearendedAugust31,2016comparedto52.9%forfiscalyear2015.

Grossmarginwaspositivelyimpactedby2.4percentagepointsfromperiodtoperiodduetofavorablenetchangesinthecostsofpetroleum-basedspecialtychemicalsandaerosolcansinallthreesegments.Thereisoftenadelayofonequarterormorebeforechangesinrawmaterialcostsimpactcostofproductssoldduetoproductionandinventorylifecycles.Theaveragecostofcrudeoilwhichflowedthroughourcostofgoodssoldwassignificantlylowerinfiscalyear2016ascomparedtofiscalyear2015,thusresultinginpositiveimpactstoourgrossmarginfromperiodtoperiod.Thecombinedeffectsoffavorablesalesmixchangesandothermiscellaneouscostspositivelyimpactedgrossmarginby 0.4 percentage points primarily due to a favorable shift in product mix as a result of a higher portion of sales in theAmericas segment being made of higher marginmaintenanceproductsfromperiodtoperiod.Grossmarginwasalsopositivelyimpactedby0.2percentagepointsfromperiodtoperiod

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primarilyduetosalespriceincreasesimplementedintheEMEAandAsia-Pacificsegmentsinfiscalyear2016.Inaddition,advertising,promotionalandotherdiscountsthatwegivetoourcustomersdecreasedfromperiodtoperiodpositivelyimpactinggrossmarginby0.1percentagepoints.Ingeneral,thetimingofadvertising,promotionalandotherdiscountsmaycausefluctuationsingrossmarginfromperiodtoperiod.Thecostsassociatedwithcertainpromotionalactivitiesarerecordedasareductiontosaleswhileothersare recorded as advertising and sales promotion expenses. Advertising, promotional and other discounts that are given to our customers are recorded as a reduction to sales,whereasadvertisingandsalespromotionalcostsassociatedwithpromotionalactivitiesthatwepaytothirdpartiesarerecordedasadvertisingandsalespromotionexpenses.

Changesinforeigncurrencyexchangeratespositivelyimpactedgrossmarginby0.4percentagepointsprimarilyduetothefluctuationsintheexchangeratesfortheEuroandU.S. Dollar against the PoundSterling in our EMEAsegment fromperiod to period. In the EMEAsegment, the majority of our cost of goods sold is denominated in PoundSterlingwhereassalesaregeneratedinPoundSterling,EuroandtheU.S.Dollar.ThecombinedeffectofthestrengtheningofboththeEuroandU.S.DollaragainstthePoundSterlingfromperiodtoperiodcausedanincreaseinourPoundSterlingsales,resultinginfavorableimpactstothegrossmargin.Thesefavorableimpactstogrossmarginwereslightlyoffsetby0.1percentagepointsduetohigherwarehousingandin-boundfreightcosts,particularlyintheAmericassegmentfromperiodtoperiod.

Notethat ourgrossprofit andgrossmarginmaynotbecomparabletothoseofotherconsumerproduct companies, sincesomeofthesecompaniesincludeall costsrelatedtodistribution of their products in cost of products sold, whereas we exclude the portion associated with amounts paid to third parties for shipment to our customers fromourdistributioncentersandcontractmanufacturersandincludethesecostsinselling,generalandadministrativeexpenses.Thesecoststotaled$16.1millionand$15.8millionforthefiscalyearsendedAugust31,2016and2015,respectively.

Selling, General and Administrative Expenses

Selling,generalandadministrative(“SG&A”)expensesforthefiscalyearendedAugust31,2016increased$8.9millionto$117.8millionfrom$108.9millionforfiscalyear2015. Asapercentageofnetsales, SG&Aexpensesincreasedto30.9%forthefiscalyearendedAugust31,2016from28.8%forfiscal year2015. TheincreaseinSG&Aexpenseswasprimarilyattributabletohigheremployee-relatedcosts,increasedfreightcostsandothermiscellaneousexpenses.Employee-relatedcosts,whichincludesalaries,incentivecompensation,profitsharing,stock-basedcompensationandotherfringebenefits,increasedby$11.5million.Thisincreasewasprimarilyduetohigheraccrualsforearnedincentivecompensationfromperiodtoperiodaswellasannualcompensationincreases,whichtakeeffectinthefirstquarterofthefiscalyear,andincreasedheadcount.Freightcostsassociatedwithshippingproductstoourcustomersincreased$1.0millionprimarilyduetohighersalesvolumesintheEMEAsegmentfromperiodtoperiodaswell as additional costs associated with the shift in the distribution model in the Germanics region in EMEA. Other miscellaneous expenses, which primarily include salescommissionsanddepreciationexpense,increasedby$0.8millionperiodoverperiod.Theseincreaseswerepartiallyoffsetbychangesinforeigncurrencyexchangerates,whichhadafavorableimpactof$4.4milliononSG&AexpensesforthefiscalyearendedAugust31,2016comparedtofiscalyear2015.

Wecontinuedourresearchanddevelopmentinvestment,themajorityofwhichisassociatedwithourmaintenanceproducts,insupportofourfocusoninnovationandrenovationof our products. Research and development costs for the fiscal years ended August 31, 2016 and 2015 were $7.7 million and $9.0 million, respectively. Our research anddevelopmentteamengagesinconsumerresearch,productdevelopment,currentproductimprovementandtestingactivities.Thisteamleveragesitsdevelopmentcapabilitiesbypartneringwithanetworkofoutsideresourcesincludingourcurrentandprospectivesuppliers. Thelevelandtypesofexpensesincurredwithinresearchanddevelopmentcanvaryfromperiodtoperioddependinguponthetypesofactivitiesbeingperformed.

Advertising and Sales Promotion Expenses

Advertising and sales promotion expenses for the fiscal year ended August 31, 2016 decreased $0.6 million to $22.3 million from $22.9 million for fiscal year 2015. As apercentageofnetsales,theseexpensesdecreasedto5.9%forthefiscalyearendedAugust31,2016from6.0%forfiscalyear2015.Changesinforeigncurrencyexchangerateshadafavorableimpactonsuchexpensesof$0.9millionfromperiodtoperiod.Thus,onaconstantcurrencybasis,advertisingandsalespromotionexpensesforfiscalyear2016wouldhaveincreasedby$0.3million,primarilyduetoahigherlevelofpromotionalprogramsandmarketingsupportintheEMEAsegmentfromperiodtoperiod.

Asapercentageofnetsales,advertisingandsalespromotionexpensesmayfluctuateperiodtoperiodbaseduponthetypeofmarketingactivitiesweemployandtheperiodinwhichthecostsareincurred.Totalpromotionalcostsrecordedasareductiontosaleswere$16.1millionand$16.0millionforthefiscalyearsendedAugust31,2016and2015,respectively.Therefore,ourtotalinvestmentinadvertisingandsalespromotionactivitiestotaled$38.4millionand$38.9millionforthefiscalyearsendedAugust31,2016and2015,respectively.

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Amortization of Definite-lived Intangible Assets Expense

Amortizationofourdefinite-livedintangibleassetsremainedconstantat$3.0millionforboththefiscalyearsendedAugust31,2016and2015.

Income from Operations by Segment

Thefollowingtablesummarizesincomefromoperationsbysegment(inthousands,exceptpercentages):

Fiscal Year Ended August 31,

Change from Prior Year

2016 2015 Dollars Percent

Americas $ 48,404 $ 46,674 $ 1,730 4%EMEA 31,702 30,173 1,529 5%Asia-Pacific 15,162 12,602 2,560 20%Unallocatedcorporate(1) (23,920) (24,059) 139 (1)%

$ 71,348 $ 65,390 $ 5,958 9%

(1) Unallocatedcorporateexpensesaregeneralcorporateoverheadexpensesnotdirectlyattributabletoanyoneoftheoperatingsegments.TheseexpensesarereportedseparatefromtheCompany’sidentifiedsegmentsandareincludedinSelling,GeneralandAdministrativeexpensesontheCompany’sconsolidatedstatementsofoperations.

Americas

IncomefromoperationsfortheAmericassegmentincreasedto$48.4million,up$1.7million,or4%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015,primarilyduetoa$4.1millionincreaseinsalesandahighergrossmargin.Asapercentageofnetsales,grossprofitfortheAmericassegmentincreasedfrom52.6%to55.1%periodoverperiod.Thisincreaseinthegrossmarginwasprimarilyduetothecombinedpositiveimpactsofdecreasedcostsofpetroleum-basedspecialtychemicalsandaerosolcansaswellasfavorablesalesmixchanges,whichwereslightlyoffsetbyincreasedwarehousingandin-housefreightcostsfromperiodtoperiod.Thehigherlevelofsalesfromperiodtoperiodwasaccompaniedbya$5.1millionincreaseinoperatingexpenses,mostofwhichrelatedtoincreasedheadcountandhigherearnedincentivecompensationexpensesperiodoverperiod.Operatingincomeasapercentageofnetsalesincreasedfrom24.9%to25.3%periodoverperiod.

EMEA

IncomefromoperationsfortheEMEAsegmentincreasedto$31.7million,up$1.5million,or5%,forthefiscalyearendedAugust31,2016comparedtofiscalyear2015,primarilyduetoahighergrossmargin,whichwaspartiallyoffsetbya$1.6milliondecreaseinsalesandhigheroperatingexpenses.Asapercentageofnetsales,grossprofitfortheEMEAsegmentincreasedfrom54.6%to58.7%periodoverperiodprimarilyduetothecombinedpositiveimpactsofdecreasedcostsofpetroleum-basedspecialtychemicalsandaerosolcansaswellassalespriceincreases.Fluctuationsinforeigncurrencyexchangeratesalsohadasignificantfavorableimpactongrossmarginfromperiodtoperiod.Operatingexpensesincreased$3.1millionmainlyrelatedtohigherearnedincentivecompensationexpensesperiodoverperiod.Operatingincomeasapercentageofnetsalesincreasedfrom22.0%to23.4%periodoverperiod.

Asia-Pacific

IncomefromoperationsfortheAsia-Pacificsegmentincreasedto$15.2million,up$2.6million,or20%,thefiscalyearendedAugust31,2016comparedtofiscalyear2015,primarilyduetoahighergrossmargin.Asapercentageofnetsales,grossprofitfortheAsia-Pacificsegmentincreasedfrom49.9%to54.8%periodoverperiodprimarilyduetothecombinedpositiveimpactsofdecreasedcostsofpetroleum-basedspecialtychemicalsandaerosolcans,salespriceincreases,andalowerlevelofadvertising,promotionalandotherdiscountsthatwegavetoourcustomersfromperiodtoperiod.Alsocontributingtotheincreasedgrossmarginfromperiodtoperiodwasthewrite-offofproductandothercostsrelatedtoaqualityissuethatoccurredduringfiscalyear2015intheAsiadistributormarkets.Operatingincomeasapercentageofnetsalesincreasedfrom23.4%to28.1%periodoverperiod.

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Non-Operating Items

Thefollowingtablesummarizesnon-operatingincomeandexpensesforourconsolidatedoperations(inthousands):

Fiscal Year Ended August 31,2016 2015 Change

Interestincome $ 683 $ 584 $ 99Interestexpense $ 1,703 $ 1,205 $ 498Otherincome(expense),net $ 2,461 $ (1,659) $ 4,120Provisionforincometaxes $ 20,161 $ 18,303 $ 1,858

Interest Income

InterestincomeremainedrelativelyconstantforthefiscalyearendedAugust31,2016comparedtofiscalyear2015.

Interest Expense

Interest expense increased $0.5 million for the fiscal year ended August 31, 2016compared to fiscal year2015primarilydueto higher interest rates and anincreasedoutstandingbalanceonourrevolvingcreditfacilityperiodoverperiod.

Other Income (Expense), Net

Otherincome(expense),netchangedby$4.1millionforthefiscalyearendedAugust31,2016comparedtofiscalyear2015primarilyduetonetforeigncurrencyexchangegainswhichwererecordedforfiscalyearendedAugust31,2016comparedtonetforeigncurrencyexchangelosseswhichwererecordedinfiscalyear2015asaresultofsignificantfluctuationsintheforeigncurrencyexchangeratesforboththeEuroandtheU.S.DollaragainstthePoundSterling.

Provision for Income T axes

Theprovisionforincometaxeswas27.7%ofincomebeforeincometaxesforthefiscalyearendedAugust31,2016comparedto29.0%forfiscalyear2015.Thedecreaseintheeffectiveincometaxratefromperiodtoperiodwasdrivenbyanincreaseintheportionoftaxableearningsattributabletoforeignoperations, particularlythoseintheU.K.,whicharetaxedatlowertaxrates.

Net Income

Netincomewas$52.6million,or$3.64percommonshareonafullydilutedbasis,forfiscalyear2016comparedto$44.8million,or$3.04percommonshareonafullydilutedbasis,forfiscalyear2015.Changesinforeigncurrencyexchangeratesyearoveryearhadanunfavorableimpactof$2.8milliononnetincomeforfiscalyear2016.Thus,onaconstantcurrencybasis,netincomeforfiscalyear2016wouldhavebeen$55.4million.

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Performance Measures and Non-GAAP Reconciliations

In managing our business operations and assessing our financial performance, we supplement the information provided by our financial statements with certain non-GAAPperformancemeasures.Theseperformancemeasuresarepartofourcurrent55/30/25businessmodel,whichincludesgrossmargin,costofdoingbusiness,andearningsbeforeinterest, income taxes, depreciation and amortization (“EBITDA”), the latter two of which are non-GAAP performance measures. Cost of doing business is defined as totaloperatingexpenseslessamortizationofdefinite-livedintangibleassets,impairmentchargesrelatedtointangibleassetsanddepreciationinoperatingdepartments,andEBITDAisdefinedasnetincome(loss)beforeinterest,incometaxes,depreciationandamortization.Wetargetourgrossmargintobeabove55%ofnetsales,ourcostofdoingbusinesstobeatorbelow30%ofnetsales,andourEBITDAtobeabove25%ofnetsales.Resultsfortheseperformancemeasuresmayvaryfromperiodtoperioddependingonvariousfactors,includingeconomicconditionsandourlevelofinvestmentinactivitiesforthefuturesuchasthoserelatedtoqualityassurance,regulatorycompliance,andintellectualpropertyprotectioninordertosafeguardourWD-40brand.Thetargetsfortheseperformancemeasuresarelong-terminnature,particularlythoseforcostofdoingbusinessandEBITDA,andweexpecttomakeprogresstowardsachievingthemovertimeasourrevenuesincrease.

Thefollowingtablesummarizestheresultsoftheseperformancemeasures:

Fiscal Year Ended August 31, 2017 2016 2015

Gross margin - GAAP 56% 56% 53%Costofdoingbusinessasapercentageofnetsales-non-GAAP 35% 36% 34%EBITDAasapercentageofnetsales-non-GAAP(1) 22% 21% 19%

(1) PercentagesmaynotaggregatetoEBITDApercentageduetoroundingandbecauseamountsrecordedinotherincome(expense),netontheCompany’sconsolidatedstatementofoperationsarenotincludedasanadjustmenttoearningsintheEBITDAcalculation.

WeusetheperformancemeasuresabovetoestablishfinancialgoalsandtogainanunderstandingofthecomparativeperformanceoftheCompanyfromperiodtoperiod.WebelievethatthesemeasuresprovideourshareholderswithadditionalinsightsintotheCompany’sresultsofoperationsandhowwerunourbusiness.Thenon-GAAPfinancialmeasuresaresupplementalinnatureandshouldnotbeconsideredinisolationorasalternativestonetincome,incomefromoperationsorotherfinancialinformationpreparedinaccordancewithGAAPasindicatorsoftheCompany’sperformanceoroperations.Theuseofanynon-GAAPmeasuremayproduceresultsthatvaryfromtheGAAPmeasureand may not be comparable to a similarly defined non-GAAP measure used by other companies. Reconciliations of these non-GAAP financial measures to our financialstatementsaspreparedinaccordancewithGAAPareasfollows:

Cost of Doing Business (inthousands,exceptpercentages):

Fiscal Year Ended August 31, 2017 2016 2015

Total operating expenses - GAAP $ 137,976 $ 143,021 $ 134,788Amortizationofdefinite-livedintangibleassets (2,879) (2,976) (3,039)Depreciation(inoperatingdepartments) (2,789) (2,744) (2,664)

Costofdoingbusiness $ 132,308 $ 137,301 $ 129,085Netsales $ 380,506 $ 380,670 $ 378,150Costofdoingbusinessasapercentageofnetsales-non-GAAP 35% 36% 34%

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E BITDA (inthousands,exceptpercentages):

Fiscal Year Ended August 31, 2017 2016 2015

Net income - GAAP $ 52,930 $ 52,628 $ 44,807Provisionforincometaxes 21,692 20,161 18,303Interestincome (508) (683) (584)Interestexpense 2,582 1,703 1,205Amortizationofdefinite-livedintangibleassets 2,879 2,976 3,039

Depreciation 3,890 3,489 3,425EBITDA $ 83,465 $ 80,274 $ 70,195Netsales $ 380,506 $ 380,670 $ 378,150EBITDAasapercentageofnetsales-non-GAAP 22% 21% 19%

Liquidity and Capital Resources

Overview

TheCompany’sfinancialconditionandliquidityremainstrong.Netcashprovidedbyoperationswas$52.3millionforfiscalyear2017comparedto$60.6millionforfiscalyear2016.Webelievewecontinuetobewellpositionedtoweatheranyuncertaintyinthecapitalmarketsandglobaleconomyduetoourstrongbalancesheetandefficientbusinessmodel,alongwithourgrowinganddiversifiedglobalrevenues.Wecontinuetomanageallaspectsofourbusinessincluding,butnotlimitedto,monitoringthefinancialhealthofourcustomers,suppliersandotherthird-partyrelationships,implementinggrossmarginenhancementstrategiesanddevelopingnewopportunitiesforgrowth.

Our principal sources of liquidity are our existing cash and cash equivalents, short-term investments, cash generated from operations and cash currently available from ourexisting$175.0millionrevolvingcreditfacilitywithBankofAmerica,N.A.(“BankofAmerica”),whichexpiresonMay13,2020.Todate,wehaveusedtheproceedsoftherevolvingcredit facilityforourstockrepurchasesandplantocontinueusingsuchproceedsforourgeneral workingcapital needsandstock repurchasesunderourboardapprovedsharebuy-backplan.TheCompanyalsoutilizedthisrevolvingcreditfacilitytofundthepurchaseandbuildoutofitsnewheadquartersoffice,whichwaspurchasedinSeptember2016andcompletedinAugust2017.ThenewofficebuildinghousesbothcorporateemployeesandemployeesintheCompany’sAmericassegment.

During the fiscal year ended August 31, 2017 ,we had net newborrowings of $32.0 million U.S. dollars under the revolving credit facility. Weregularly convert the vastmajorityofourdrawsonourlineofcredittonewdrawswithnewmaturitydatesandinterestrates.AsofAugust31,2017,wehada$154.0millionoutstandingbalanceontherevolvingcreditfacility,ofwhich$134.0millionwasclassifiedaslong-termand$20.0millionwasclassifiedasshort-term.Therewerenootherlettersofcreditoutstandingorrestrictionsontheamountavailableonthislineofcredit.Perthetermsoftherevolvingcreditfacilityagreement,ourconsolidatedleverageratiocannotbegreaterthanthreetooneandourconsolidatedinterestcoverageratiocannotbelessthanthreetoone.SeeNote7–Debtforadditionalinformationonthesefinancialcovenants.AtAugust31,2017,wewereincompliancewithalldebtcovenantsasrequiredbytherevolvingcreditfacilityandbelieveitisunlikelywewillfailtocomplywithanyofthesecovenantsoverthenexttwelvemonths.Wewouldneedtohaveasignificantdecreaseinsalesand/orasignificantincreaseinexpensesinorderforustonotcomplywiththedebtcovenants.

AtAugust31,2017,wehadatotalof$117.2millionincashandcashequivalentsandshort-terminvestments.Ofthisbalance,$114.0millionwasheldinEurope,AustraliaandChinainforeigncurrencies.Itisourintentiontoindefinitelyreinvestthecumulativeunremittedearningsattheselocationsinordertoensuresufficientworkingcapital,expandoperations and fund foreign acquisitions in these locations. Webelieve that our future cash fromdomestic operations, together with our access to funds available under ourunsecured revolving credit facility will provide adequate resources to fund both short-term and long-term operating requirements, capital expenditures, share repurchases,dividendpayments,acquisitionsandnewbusinessdevelopmentactivitiesintheUnitedStates.AlthoughweholdasignificantamountofcashoutsideoftheUnitedStatesandthedraws on the credit facility to date have been made by our entity in the United States, we do not foresee any ongoing issues with repaying or refinancing these loans withdomestically generated funds since weclosely monitor the use of this credit facility. In the event that management elects for any reason in the future to repatriate additionalforeign earnings that were previously deemedto be indefinitely reinvested outside of the U.S., wewould be required to record additional tax expense at the time whenwedeterminethatsuchforeignearningsarenolongerdeemedtobeindefinitelyreinvestedoutsideoftheUnitedStates.

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WebelievethatourexistingconsolidatedcashandcashequivalentsatAugust31,2017,theliquidityprovidedbyour$175.0millionrevolvingcreditfacilityandouranticipatedcash flows fromoperations will be sufficient to meet our projected consolidated operating and capital requirements for at least the next twelve months. Weconsider variousfactorswhenreviewingliquidityneedsandplansforavailablecashonhandincluding:futuredebt,principalandinterestpayments,futurecapitalexpenditurerequirements,futureshare repurchases, future dividend payments (which are determined on a quarterly basis by the Company’s Board of Directors), alternative investment opportunities, debtcovenantsandanyotherrelevantconsiderationscurrentlyfacingourbusiness.

Cash Flows

Thefollowingtablesummarizesourcashflowsbycategoryfortheperiodspresented(inthousands):

Fiscal Year Ended August 31,2017 2016 2015

Netcashprovidedbyoperatingactivities $ 52,337 $ 60,604 $ 55,064Netcashusedininvestingactivities (42,291) (20,920) (16,951)Netcashusedinfinancingactivities (23,603) (38,536) (38,663)Effectofexchangeratechangesoncashandcashequivalents (252) (4,153) (3,357)Netdecreaseincashandcashequivalents $ (13,809) $ (3,005) $ (3,907)

OperatingActivities

Netcashprovidedbyoperatingactivitiesdecreased$8.3millionto$52.3millionforfiscalyear2017from$60.6millionforfiscalyear2016.Cashflowsfromoperatingactivitiesdependheavilyonoperatingperformanceandchangesinworkingcapital.OurprimarysourceofoperatingcashflowsforfiscalyearendedAugust31,2017wasnetincomeof$52.9million,whichincreased$0.3millionfromperiodtoperiod.Thechangesinourworkingcapitalfromperiodtoperiodwereprimarilyattributabletoanoveralldecreaseinaccruedpayrollandrelatedexpensesduetohigherearnedincentivepayoutsinthefirstquarteroffiscalyear2017comparedtothesameperiodofthepriorfiscalyearaswellaslowerearnedincentiveaccrualsduringthefiscalyearendedAugust31,2017ascomparedtothepriorfiscalyear.TheseearnedincentivepayoutsandaccrualsarebasedontheCompany achieving targets for EBITDA which are set each fiscal year. As a result, these amounts have varied year over year due to the Company’s actual or expectedachievement of these targets. Higher income taxes receivable balances also contributed to the overall decrease in cash provided by operating activities from period toperiod.Theseimpactstoworkingcapitalwerepartiallyoffsetbychangesintradeaccountsreceivablebalancesyearoveryear.Suchbalancesadecreasedslightlyfromfiscalyear2016tofiscalyear2017whereastheyincreasedsignificantlyfromfiscalyear2015tofiscalyear2016.Thesignificantincreaseinthetradeaccountsreceivablebalanceattheendoffiscalyear2016wasprimarilyduetoincreasedsalesvolumesinthefourthquarteroffiscalyear2016ascomparedtothesamequarterinfiscalyear2015andthetimingofpaymentsreceivedfromourcustomersfromperiodtoperiod.

Netcashprovidedbyoperatingactivitiesincreased$5.5millionto$60.6millionforfiscalyear2016from$55.1millionforfiscalyear2015.Cashflowsfromoperatingactivitiesdependheavilyonoperatingperformanceandchangesinworkingcapital.OurprimarysourceofoperatingcashflowsforfiscalyearendedAugust31,2016wasnetincomeof$52.6million,whichincreased$7.8millionfromperiodtoperiod.Thisincreasewasslightlyoffsetbychangesinourworkingcapital,whichwereprimarilyattributabletoanoverallincreaseinthetradeaccountsreceivablebalanceduetoincreasedsalesvolumesinthefourthquarteroffiscalyear2016ascomparedtothesamequarterinfiscalyear2015andthetimingofpaymentsreceivedfromourcustomersfromperiodtoperiod.Alsocontributingtothechangeinworkingcapitalfromperiodtoperiodwerelowerearnedincentive payouts in the first quarter of fiscal year 2016 compared to the same period of fiscal year 2015 as well as significantly higher accruals for earnedincentivecompensationinfiscalyear2016ascomparedfiscalyear2015.

InvestingActivities

Netcashusedininvestingactivitiesincreased$21.4millionto$42.3millionforfiscalyear2017from$20.9millionforfiscalyear2016primarilyduetoanincreaseof$16.4million in cashoutflowduringthefiscal year 2017relatedtothepurchaseandbuildoutoftheCompany’s newoffice building , whichwascompleted in August 2017. Alsocontributingtothetotalcashoutflowswasa$5.7millionnetincreasefromperiodtoperiodinpurchasesofshort-terminvestmentsthatweremadeprimarilybyourU.K.andAustraliasubsidiaries.

Netcashusedininvestingactivitiesincreased$4.0millionto$20.9millionforfiscalyear2016from$16.9millionforfiscalyear2015primarilyduetoa$9.5millionincreaseinnetpurchasesofshort-terminvestmentsthatweremadebyourU.K.andAustraliasubsidiaries.Thisincreasewaspartiallyoffsetbyadecreaseof$4.1millionincashoutflowrelatedtotheGT85Limited

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acquisitionwhichwascompletedbyourU.K.subsidiaryinearlyfiscalyear2015anda$1.4milliondecreaseincapitalexpendituresfromperiodtoperiod.

FinancingActivities

Netcashusedinfinancingactivitiesdecreased$14.9millionto$23.6millionforfiscalyear2017from$38.5millionforfiscalyear2016primarilyduetoan$18.0millionincreaseincashinflowsfromourrevolvingcreditfacilityanda$1.0milliondecreaseincashoutflowsfortreasurystockpurchasesfromperiodtoperiod.Thisdecreasewaspartiallyoffsetbyanincreaseof$3.1millionindividendspaid.Alsooffsettingcashinflowsfromfinancingactivitieswasa$0.5milliondecreaseinexcesstaxbenefitsfromsettlementsofstock-basedequityawardsanda$0.5milliondecreaseinproceedsfromtheissuanceofcommonstockupontheexerciseofstockoptionsfromperiodtoperiod.

Netcashusedinfinancingactivitiesdecreased$0.2millionto$38.5millionforfiscalyear2016from$38.7millionforfiscalyear2015primarilyduetoa$4.0millionincreaseincashproceedsfromourrevolvingcredit facility, whichwasalmost completelyoffset bya$1.9millionincreaseindividendspaidanda$1.9millionincreaseincashoutflowfortreasurystockpurchasesfromperiodtoperiod.

EffectofExchangeRateChanges

AllofourforeignsubsidiariescurrentlyoperateincurrenciesotherthantheU.S.Dollarandasignificantportionofourconsolidatedcashbalanceisdenominatedintheseforeignfunctionalcurrencies, particularlyatourU.K.subsidiarywhichoperatesinPoundSterling.Asaresult, ourcashandcashequivalentsbalancesaresubjecttotheeffectsofthefluctuationsinthesefunctionalcurrenciesagainsttheU.S.Dollarattheendofeachreportingperiod.Theneteffectofexchangeratechangesoncashandcashequivalents,whenexpressedinU.S.Dollarterms,wasadecreaseincashof$0.3million,$4.2millionand$3.4millionforfiscalyears2017,2016and2015,respectively.Thesechangeswereprimarilyduetofluctuationsinvariousforeigncurrencyexchangeratesfromperiodtoperiod,butthemajorityisrelatedtothefluctuationsinthePoundSterlingagainsttheU.S.Dollar.

Share Repurchase Plans

OnJune21,2016,theCompany’sBoardofDirectorsapprovedasharebuy-backplan.Undertheplan,whichbecameeffectiveonSeptember1,2016,theCompanyisauthorizedtoacquireupto$75.0millionofitsoutstandingsharesthroughAugust31,2018.ThetimingandamountofrepurchasesarebasedontermsandconditionsasmaybeacceptabletotheCompany’sChiefExecutiveOfficerandChiefFinancial Officerandincompliancewithall lawsandregulationsapplicablethereto.DuringtheperiodfromSeptember1,2016throughAugust31,2017,theCompanyrepurchased290,573sharesatatotalcostof$31.1millionunderthis$75.0millionplan.

Dividends

TheCompanyhashistoricallypaidregularquarterlycashdividendsonitscommonstock.InDecember2016,theBoardofDirectorsdeclareda17%increaseintheregularquarterlycashdividend,increasingitfrom$0.42pershareto$0.49pershare.OnOctober10,2017,theCompany’sBoardofDirectorsdeclaredacashdividendof$0.49persharepayableonOctober31,2017toshareholdersofrecordonOctober20,2017.Ourabilitytopaydividendscouldbeaffectedbyfuturebusinessperformance,liquidity,capitalneeds,alternativeinvestmentopportunitiesandloancovenants.

Off-Balance Sheet Arrangements

Wehavenooff-balancesheetarrangementsasdefinedbyItem303(a)(4)(ii)ofRegulationS-K.

Contractual Obligations

ThefollowingtablesetsforthourbestestimatesastotheamountsandtimingofminimumcontractualpaymentsforourmostsignificantcontractualobligationsandcommitmentsasofAugust31,2017forthenextfiveyearsandthereafter(inthousands).Futureeventscouldcauseactualpaymentstodiffersignificantlyfromtheseamounts.

Total 1 year 2-3 years 4-5 years ThereafterOperatingleases $ 5,660 $ 1,856 $ 2,116 $ 1,218 $ 470

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ThefollowingsummarizesothercommitmentswhichareexcludedfromthecontractualobligationstableaboveasofAugust31,2017:

· Wehaveongoingrelationshipswithvarioussuppliers(contractmanufacturers)whomanufactureourproducts.Thecontractmanufacturersmaintaintitleandcontrolofcertain rawmaterials andcomponents, materials utilized in finished products, andof the finished products themselves until shipment to our customers or third-partydistributioncentersinaccordancewithagreeduponshipmentterms.Althoughwetypicallydonothavedefinitiveminimumpurchaseobligationsincludedinthecontractterms with our contract manufacturers, when such obligations have been included, they have been immaterial. In the ordinary course of business, we communicatesupplyneedstoourcontractmanufacturersbasedonordersandshort-termprojections, rangingfromtwotofivemonths.Wearecommittedtopurchasetheproductsproducedbythecontractmanufacturersbasedontheprojectionsprovided.Upontheterminationofcontractswithcontractmanufacturers,weobtaincertaininventorycontrolrightsandareobligatedtoworkwiththecontractmanufacturertosellthroughallproductheldbyormanufacturedbythecontractmanufactureronourbehalfduringtheterminationnotificationperiod. If anyinventoryremainsat thecontract manufacturer at theterminationdate, weareobligatedtopurchasesuchinventorywhichmayincluderawmaterials,componentsandfinishedgoods.

· UnderthecurrenttermsofthecreditfacilityagreementwithBankofAmerica,wemayborrowfundsinU.S.dollarsorinforeigncurrenciesfromtimetotimeduringthefive-yearperiodcommencingMarch13,2015throughMay13,2020.AsofAugust31,2017,wehad$154.0millionoutstandingonthiscreditfacility.Basedonourmostrecentcashprojectionsandanticipatedbusinessactivities,weexpecttoborrowadditionalamountsrangingfrom$15.0millionto$20.0millioninfiscalyear2018.Weestimatethattheinterestassociatedwiththeseincrementalborrowingswillbeapproximately$0.4millionforfiscalyear2018basedonestimatedapplicableinterestratesandtheexpecteddatesoffutureborrowings.Foradditionaldetailsonthisrevolvinglineofcredit,refertotheinformationsetforthinNote7–Debt.

· AtAugust31,2017,theliabilityrecordedforuncertaintaxpositions,excludingassociatedinterestandpenalties,wasapproximately$1.0million.Wehaveestimatedthatupto$0.4millionofunrecognizedtaxbenefitsrelatedtoincometaxpositionsmaybeaffectedbytheresolutionoftaxexaminationsorexpiringstatutesoflimitationwithinthenexttwelvemonths.

Critical Accounting Policies

Ourresults of operations andfinancial condition, as reflected inour consolidatedfinancial statements, havebeenpreparedin accordancewithaccountingprinciples generallyacceptedintheUnitedStatesofAmerica.Preparationoffinancialstatementsrequiresustomakeestimatesandassumptionsaffectingthereportedamountsofassets,liabilities,revenuesandexpensesandthedisclosuresofcontingentassetsandliabilities.Weusehistoricalexperienceandotherrelevantfactorswhendevelopingestimatesandassumptionsandthese estimates andassumptions are continually evaluated. Note 2 to our consolidated financial statements includedin Item15of this report includes a discussionof theCompany’ssignificantaccountingpolicies.Theaccountingpoliciesdiscussedbelowaretheonesweconsidertobemostcriticaltoanunderstandingofourconsolidatedfinancialstatementsbecausetheirapplicationplacesthemostsignificantdemandsonourjudgment.Ourfinancialresultsmayhavevariedfromthosereportedhaddifferentassumptionsbeenusedorotherconditionsprevailed.OurcriticalaccountingpolicieshavebeenreviewedwiththeAuditCommitteeoftheBoardofDirectors.

RevenueRecognitionandSalesIncentives

Salesarerecognizedasrevenueatthetimeofdeliverytoourcustomerwhenrisksoflossandtitlehavepassed.Salesarerecordednetofallowancesfordamagedgoodsandothersalesreturns,salesincentives,tradepromotionsandcashdiscounts.Forcertainofoursaleswemustmakejudgmentsandcertainassumptionsinordertodeterminewhendeliveryhasoccurred.Throughananalysisofend-of-periodshipmentsfortheseparticularsales,wedetermineanaveragetimeoftransitofproducttoourcustomers,andthisisusedtoestimatethetimeofdeliveryandwhetherrevenueshouldberecognizedduringthecurrentreportingperiodforsuchshipments.Differencesinjudgmentsorestimatesrelatedtothelengtheningorshorteningoftheestimateddeliverytimeusedcouldresultinmaterialdifferencesinthetimingofrevenuerecognition.

Salesincentivesarerecordedasareductionofsalesinourconsolidatedstatementsofoperations.Salesincentivesincludeon-goingtradepromotionprogramswithcustomersandconsumercouponprogramsthatrequireustoestimateandaccruefortheexpectedcostsofsuchprograms.Theseprogramsincludecooperativemarketingprograms,shelfpricereductions, coupons, rebates, consideration andallowances givento retailers for shelf spaceand/or favorable displaypositions in their stores andother promotional activities.Costsrelatedtothesesalesincentiveprograms,withtheexceptionofcouponcosts,arerecordedasareductiontosalesupondeliveryofproductstocustomers.Couponcostsarebaseduponhistoricalredemptionratesandarerecordedasareductiontosalesasincurred,whichiswhenthecouponsarecirculated.

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Salesincentivesarecalculatedbasedprimarilyonhistorical ratesandconsiderationofrecentpromotional activities. Thedeterminationofsalesincentivecosts andtherelatedliabilitiesrequireustousejudgmentforestimatesthatincludecurrentandpasttradepromotionspendingpatterns,statusoftradepromotionactivitiesandtheinterpretationofhistorical spendingtrendsbycustomerandcategory. Wereviewourassumptionsandadjust oursalesincentiveallowancesaccordinglyonaquarterlybasis. Ourconsolidatedfinancialstatementscouldbemateriallyimpactediftheactualpromotionratesaredifferentfromtheestimatedrates.IfouraccrualestimatesforsalesincentivesatAugust31,2017weretodifferby10%,theimpactonnetsaleswouldbeapproximately$0.7million.

AccountingforIncomeTaxes

Currentincometaxexpenseistheamountofincometaxesexpectedtobepayableforthecurrentyear. Adeferredincometaxliabilityorassetis establishedfortheexpectedfuturetaxconsequencesresultingfromthedifferencesinfinancialreportingandtaxbasesofassetsandliabilities.Avaluationallowanceisprovidedifitismorelikelythannotthatsomeorallofthedeferredtaxassetswillnotberealized.Inadditiontovaluationallowances,weprovideforuncertaintaxpositionswhensuchtaxpositionsdonotmeettherecognitionthresholdsormeasurementstandardsprescribedbytheauthoritativeguidanceonincometaxes.Amountsforuncertaintaxpositionsareadjustedinperiodswhennewinformationbecomesavailableorwhenpositionsareeffectivelysettled.Werecognizeaccruedinterestandpenaltiesrelatedtouncertaintaxpositionsasacomponentofincometaxexpense.

U.S.federalincometaxexpenseisprovidedonremittancesofforeignearningsandonunremittedforeignearningsthatarenotindefinitelyreinvested.U.S.federalincometaxesandforeignwithholdingtaxesarenotprovidedwhenforeignearningsareindefinitelyreinvested.Wedeterminewhetherourforeignsubsidiarieswillinvesttheirundistributedearningsindefinitelybasedonthecapitalneedsoftheforeignsubsidiaries.Wereassessthisdeterminationeachreportingperiod.Changestothisdeterminationmaybewarrantedbasedonourexperienceaswellasplansregardingfutureinternationaloperationsandexpectedremittances.

ValuationofGoodwill

The carrying value of goodwill is reviewed for possible impairment in accordance with the authoritative guidance on goodwill, intangibles and other. Weassess for possibleimpairments togoodwill at least annually duringoursecondfiscal quarter andotherwisewhenevents or changesincircumstances indicate that animpairment conditionmayexist.

Duringthesecondquarteroffiscalyear2017,weperformedourannualgoodwillimpairmenttest.Theannualgoodwillimpairmenttestwasperformedatthereportingunitlevelasrequiredbytheauthoritativeguidance.InaccordancewithASUNo.2011-08,“TestingGoodwillforImpairment”,companiesarepermittedtofirstassessqualitativefactorstodetermine whether it is necessary to perform the two-step quantitative goodwill impairment test. We performed a qualitative assessment of each reporting unit todeterminewhether it wasmorelikelythannot that thefair valueof a reportingunit wasless thanits carryingamount. Inperformingthis qualitative assessment, weassessedrelevant events andcircumstances that mayimpact the fair value andthe carryingamount of eachof our reportingunits. Factors that wereconsideredincluded, but werenotlimitedto,thefollowing:(1)macroeconomicconditions;(2)industryandmarketconditions;(3)historicalfinancialperformanceandexpectedfinancialperformance;(4)otherentityspecificevents,suchaschangesinmanagementorkeyemployees;and(5)eventsaffectingtheCompany’sreportingunits,suchasachangeinthecompositionofnetassetsoranyexpecteddispositions.Basedontheresultsofthisqualitativeassessment,wedeterminedthatitismorelikelythannotthatthecarryingvalueofeachofourreportingunitsislessthanitsfairvalueand,thus,thetwo-stepquantitativeanalysiswasnotrequired.Asaresult,weconcludedthatnoimpairmentofourgoodwillexistedasofFebruary28,2017.Wealsodidnotidentifyorrecordanyimpairmentlossesrelatedtoourgoodwillduringourannualimpairmenttestsperformedinfiscalyears2016and2015.

Whilewebelievethattheestimatesandassumptionsusedinourgoodwillimpairmenttestandanalysesarereasonable,actualeventsandresultscoulddiffersubstantiallyfromthose included in the calculation. In the event that business conditions change in the future, we may be required to reassess and update our forecasts and estimates used insubsequentgoodwillimpairmentanalyses.Iftheresultsofthesefutureanalysesarelowerthancurrentestimates,animpairmentchargetoourgoodwillbalancesmayresultatthattime.

Inaddition,therewerenoindicatorsofimpairmentidentifiedasaresultofourreviewofeventsandcircumstancesrelatedtoourgoodwillsubsequenttoFebruary28,2017.

ImpairmentofDefinite-LivedIntangibleAssets

Weassessforpotentialimpairmentstoourlong-livedassetswhenthereisevidencethateventsorchangesincircumstancesindicatethatthecarryingamountofanassetmaynotberecoverableand/oritsestimatedremainingusefullifemaynolongerbe

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appropriate.Anyrequiredimpairmentlosswouldbemeasuredastheamountbywhichtheasset’scarryingamountexceedsitsfairvalue,whichistheamountatwhichtheassetcouldbeboughtorsoldinacurrenttransactionbetweenwillingmarketparticipantsandwouldberecordedasareductioninthecarryingamountoftherelatedassetandachargetoresultsofoperations.Animpairmentlosswouldberecognizedwhenthesumoftheexpectedfutureundiscountednetcashflowsislessthanthecarryingamountoftheasset.

TherewerenoindicatorsofpotentialimpairmentidentifiedasaresultoftheCompany’sreviewofeventsandcircumstancesrelatedtoitsexistingdefinite-livedintangibleassetsfortheperiodsendedAugust31,2017,2016and2015.

Recently Issued Accounting Standards

InformationonRecentlyIssuedAccountingStandardsthatcouldpotentiallyimpacttheCompany’sconsolidatedfinancialstatementsandrelateddisclosuresisincorporatedbyreferencetoPartIV—Item15,“NotestoCondensedConsolidatedFinancialStatements”Note2—BasisofPresentationandSummaryofSignificantAccountingPolicies,includedinthisreport.

Related Parties

TheinformationrequiredbythisitemisincorporatedbyreferencetoPartIV—Item15,“NotestoCondensedConsolidatedFinancialStatements”Note10—RelatedParties,includedinthisreport.

Item 7A . Quantitative and Qualitative Disclosures About Market Risk

Foreign Currency Risk

TheCompanyisexposedtoavarietyofrisks,includingforeigncurrencyexchangeratefluctuations.Inthenormalcourseofbusiness,theCompanyemploysestablishedpoliciesandprocedurestomanageitsexposuretofluctuationsinforeigncurrencyvalues.

AlloftheCompany’sinternationalsubsidiariesoperateinfunctionalcurrenciesotherthantheU.S.dollar.Asaresult,theCompanyisexposedtoforeigncurrencyrelatedriskwhenthefinancialstatementsofitsinternationalsubsidiariesaretranslatedforconsolidationpurposesfromfunctionalcurrenciestoU.S.dollars.Thisforeigncurrencyriskcanaffectsales, expensesandprofits aswellasassetsandliabilitiesthataredenominatedincurrenciesotherthantheU.S.dollar. TheCompanydoesnotenterintoanyhedgingactivitiestomitigatethisforeigncurrencytranslationrisk.

TheCompany’sU.K.subsidiary,whosefunctionalcurrencyisPoundSterling,utilizesforeigncurrencyforwardcontractstolimititsexposuretonetassetbalancesheldinnon-functional currencies, specifically the Euro. TheCompanyregularly monitors its foreign exchange exposures to ensure the overall effectiveness of its foreign currency hedgepositions. While the Company engages in foreign currency hedging activity to reduce its risk, for accounting purposes, none of its foreign currency forward contracts aredesignatedashedges.

Interest Rate Risk

AsofAugust31,2017,theCompanyhada$154.0millionoutstandingbalanceonitsexisting$175.0millionrevolvingcreditfacilityagreementwithBankofAmerica.This$175.0millionrevolvingcreditfacilityissubjecttointerestratefluctuations.Underthetermsofthecreditfacilityagreement,theCompanymayborrowloansinU.S.dollarsorinforeigncurrenciesfromtimetotimeuntilMay13,2020.AllloansdenominatedinU.S.dollarswillaccrueinterestatthebank’sPrimerateoratLIBORplusamarginof0.85percent(togetherwithanyapplicablemandatoryliquidassetcostsimposedbynon-U.S.bankingregulatoryauthorities).Allloansdenominatedinforeigncurrencieswillaccrueinterest at LIBOR plus 0.85 percent. Any significant increase in the bank’s Prime rate and/or LIBOR rate could have a material effect on interest expense incurred on anyborrowingsoutstandingunderthecreditfacility.

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Item 8 . Financial Statements and Supplementary Data

TheCompany’s consolidatedfinancial statements at August 31, 2017and2016andfor eachof thethree fiscal years in theperiodendedAugust 31, 2017, andtheReport ofIndependentRegisteredPublicAccountingFirm,areincludedinItem15ofthisreport.

Quarterly Financial Data (Unaudited)

Thefollowingtablesetsforthcertainunauditedquarterlyconsolidatedfinancialdata(inthousands,exceptpersharedata):

Fiscal Year Ended August 31, 20171st 2nd 3rd 4th Total

Netsales $ 89,248 $ 96,519 $ 98,178 $ 96,561 $ 380,506Grossprofit $ 51,040 $ 54,462 $ 54,287 $ 54,096 $ 213,885Netincome $ 11,758 $ 12,360 $ 14,444 $ 14,368 $ 52,930Dilutedearningspercommonshare $ 0.82 $ 0.87 $ 1.02 $ 1.01 $ 3.72

Fiscal Year Ended August 31, 20161st 2nd 3rd 4th Total

Netsales $ 92,522 $ 94,550 $ 96,446 $ 97,152 $ 380,670Grossprofit $ 51,408 $ 52,362 $ 54,811 $ 55,788 $ 214,369Netincome $ 12,062 $ 13,669 $ 12,665 $ 14,232 $ 52,628Dilutedearningspercommonshare $ 0.83 $ 0.94 $ 0.88 $ 0.99 $ 3.64

Item 9 . Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A . Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Theterm“disclosure controls andprocedures” is definedin Rules 13a-15(e) and15d-15(e) promulgated under the Securities ExchangeAct of 1934, as amended(“ExchangeAct”).ThetermdisclosurecontrolsandproceduresmeanscontrolsandotherproceduresofaCompanythataredesignedtoensuretheinformationrequiredtobedisclosedbytheCompanyinthereportsthatit filesorsubmitsundertheActisrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedintheSEC’srulesandforms.Disclosurecontrolsandproceduresinclude,withoutlimitation,controlsandproceduresdesignedtoensurethatinformationrequiredtobedisclosedbyaCompanyinthereportsthatitfilesorsubmitsundertheExchangeActisaccumulatedandcommunicatedtotheCompany’smanagement,includingitsprincipalexecutiveandprincipalfinancialofficers,or personsperformingsimilar functions, as appropriate to allowtimelydecisions regardingrequireddisclosures. TheCompany’s Chief Executive Officer andChief FinancialOfficerhaveevaluatedtheeffectivenessoftheCompany’sdisclosurecontrolsandproceduresasofAugust31,2017,theendoftheperiodcoveredbythisreport(theEvaluationDate),andtheyhaveconcludedthat,asoftheEvaluationDate,suchcontrolsandprocedureswereeffectiveatensuringthatrequiredinformationwillbedisclosedonatimelybasisintheCompany’sreportsfiledundertheExchangeAct.AlthoughmanagementbelievestheCompany’sexistingdisclosurecontrolsandproceduresareadequatetoenabletheCompanytocomplywithits disclosureobligations, management continuestoreviewandupdatesuchcontrols andprocedures. TheCompanyhasadisclosurecommittee,whichconsistsofcertainmembersoftheCompany’sseniormanagement.

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Management’s Report on Internal Control over Financial Reporting

Managementisresponsibleforestablishingandmaintainingadequateinternalcontroloverfinancialreporting,assuchtermisdefinedinExchangeActRule13a-15(f).UnderthesupervisionandwiththeparticipationofourChiefExecutiveOfficerandChiefFinancialOfficer,managementconductedanevaluationoftheeffectivenessofitsinternalcontrolover financial reporting based upon the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the TreadwayCommissionin2013.Basedonthatevaluation,managementconcludedthatitsinternalcontroloverfinancialreportingiseffectiveasofAugust31,2017.

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures maydeteriorate.

PricewaterhouseCoopersLLP,independentregisteredpublicaccountingfirm,whoauditedandreportedontheconsolidatedfinancialstatementsofWD-40CompanyincludedinItem15ofthisreport,hasauditedtheeffectivenessofWD-40Company’sinternalcontroloverfinancialreportingasofAugust31,2017,asstatedintheirreportincludedinItem15ofthisreport.

Changes in Internal Control over Financial Reporting

For the quarter ended August 31, 2017, there were no significant changes to the Company’s internal control over financial reporting that materially affected, or would bereasonablylikelytomateriallyaffect,itsinternalcontroloverfinancialreporting.

Item 9B . Other Information

None.

PART III

Item 10 . Directors, Executive Officers and Corporate Governance

Certaininformationrequiredbythisitemissetforthundertheheadings“SecurityOwnershipofDirectorsandExecutiveOfficers,”“NomineesforElectionasDirectors,”“AuditCommittee”and“Section16(a)BeneficialOwnershipReportingCompliance”intheCompany’sProxyStatementtobefiledwiththeSecuritiesandExchangeCommissioninconnection with the 201 7Annual Meeting of Stockholders on December 12, 2017 (“Proxy Statement”), which information is incorporated by reference herein. AdditionalinformationconcerningexecutiveofficersoftheRegistrantrequiredbythisitemisincludedinthisreportfollowingItem4ofPartIundertheheading,"ExecutiveOfficersoftheRegistrant."

TheRegistranthasacodeofethics(asdefinedinItem406ofRegulationS-KundertheExchangeAct)applicabletoitsprincipalexecutiveofficer,principalfinancialofficer,principal accounting officer or controller and persons performing similar functions. The code of ethics is represented by the Registrant’s Code of Conduct applicable to allemployees and directors. A copy of the Code of Conductmay be found on the Registrant’s internet website on the Corporate Governance link from the Investors page atwww.wd40company.com.

Item 11 . Executive Compensation

Information required by this item is incorporated by reference to the Proxy Statemen t under the headings “Board of Directors Compensation,” “Compensation CommitteeInterlocksandInsider Participation,” “CompensationDiscussionandAnalysis,” “CompensationCommitteeReport,” “ExecutiveCompensation,”“Supplemental DeathBenefitPlansandSupplementalInsuranceBenefits”and“ChangeofControlSeveranceAgreements.”

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Item 12 . Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Certain information required by this item is incorporated by reference to the Proxy Statement under the headings “Principal Security Holders” and “Security Ownership ofDirectorsandExecutiveOfficers.”

Equity Compensation Plan Information

ThefollowingtableprovidesinformationregardingsharesoftheCompany’scommonstockauthorizedforissuanceunderequitycompensationplansasofAugust31,2017:

Number of securitiesremaining available for

Number of securities to future issuance underbe issued upon exercise Weighted-average exercise equity compensation plansof outstanding options, price of outstanding options (excluding securities

warrants and rights warrants and rights reflected in column (a))(a) (b) (c)

Plan categoryEquitycompensationplansapprovedbysecurityholders 198,525(1) $ 36.03(2) 979,546

Equitycompensationplansnotapprovedbysecurityholders n/a n/a n/a

198,525(1) $ 36.03(2) 979,546

(1)Includes5,960securitiestobeissueduponexerciseofoutstandingstockoptions;116,770securitiestobeissuedpursuanttooutstandingrestrictedstockunits;44,919securitiestobeissuedpursuanttooutstandingmarketshareunits(“MSUs”)basedon100%ofthetargetnumberofMSUsharestobeissueduponachievementoftheapplicableperformancemeasurespecifiedforsuchMSUs;and30,876securitiestobeissuedpursuanttooutstandingdeferredperformanceunits(“DPUs”)basedon100%ofthemaximumnumberofDPUsharestobeissueduponachievementoftheapplicableperformancemeasurespecifiedforsuchDPUs.

(2)Weightedaverageexercisepriceonlyappliestostockoptionsoutstandingof5,960,whichisincludedasacomponentofthenumberofsecuritiestobeissueduponexerciseofoutstandingoptions,warrantsandrights.

Item 13 . Certain Relationships and Related Transactions, and Director Independence

Information required by this item is incorporated by reference to the Proxy Statement under the headings “Director Independence”, “Audit Committee” and “Related PartyTransactionsReviewandOversight.”

Item 14 . Principal Accountant Fees and Services

Information required by this item is incorporated by reference to the Proxy Statement under the heading “Ratification of Appointment of Independent Registered PublicAccountingFirm.”

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PART IV

Item 15 . Exhibits, Financial Statement Schedules Page

(a) Documentsfiledaspartofthisreport

(1) ReportofIndependentRegisteredPublicAccountingFirm F-1 ConsolidatedBalanceSheets F-2 ConsolidatedStatementsofOperations F-3 ConsolidatedStatementsofComprehensiveIncome F-4ConsolidatedStatementsofShareholders’Equity F-5

ConsolidatedStatementsofCashFlows F-6 NotestoConsolidatedFinancialStatements F-7

(2)Financialstatementschedulesareomittedbecausetheyarenotapplicableortherequiredinformationisshownintheconsolidatedfinancialstatementsornotesthereto.

(3)Exhibits

Exhibit

No. Description ArticlesofIncorporationandBylaws. 3(a) CertificateofIncorporation,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober22,2012,Exhibit3(a)thereto. 3(b) AmendedandRestatedBylawsofWD-40Company,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledJuly14,2017,Exhibit3.1thereto. MaterialContracts. ExecutiveCompensationPlansandArrangements(Exhibits10(a)through10(t)aremanagementcontractsandcompensatoryplansorarrangementsrequiredtobefiledas

exhibitspursuanttoItem15(b)). 10(a) WD-40Company2016StockIncentivePlan,incorporatedbyreferencefromtheRegistrant’sProxyStatementfiledNovember3,2016,AppendixAthereto.

10(b) WD-40Company2007StockIncentivePlan,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober22,2012,Exhibit10(a)thereto.

10(c) FourthAmendedandRestatedWD-40Company1990IncentiveStockOptionPlan,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober22,2015,Exhibit10(b)thereto.

10(d) WD-40Directors’CompensationPolicyandElectionPlandatedOctober9,2017.

10(e) FormofIndemnityAgreementbetweentheRegistrantanditsexecutiveofficersanddirectors,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober22,2013,Exhibit10(d)thereto.

10(f) FormofRestrictedStockUnitAwardAgreementforgrantsofRestrictedStockUnitstoExecutiveOfficersinfiscalyears2015and2016,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober24,2016,Exhibit10(e)thereto.

10(g) FormofRestrictedStockUnitAgreementforgrantsofRestrictedStockUnitstoExecutiveOfficersinfiscalyear2017.

10(h) FormofMarketShareUnitAwardAgreementforgrantsofMarketShareUnitstoExecutiveOfficersinfiscalyears2015and2016,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledOctober31,2012,Exhibit10(a)thereto.

10(i) FormofMarketShareUnitAwardAgreementforgrantsofMarketShareUnitstoExecutiveOfficersinfiscalyear2017.

10(j) FormofDeferredPerformanceUnitAwardAgreementforgrantsofDeferredPerformanceUnitstoExecutiveOfficersinfiscalyear2017.

10(k) AmendedandRestatedofWD-40Company’sPerformanceIncentiveCompensationPlan,incorporatedbyreferencefromtheRegistrant’sProxyStatementfiledNovember1,2012,AppendixAthereto.

10(l) FormofWD-40CompanySupplementalDeathBenefitPlanapplicabletocertainexecutiveofficersoftheRegistrant,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober24,2016,Exhibit10(i)thereto.

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10(m) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandJayW.RemboltdatedOctober16,2008,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober21,2014,Exhibit10(h)thereto.

10(n) Change of Control Severance Agreement betweenWD-40Company andRichard T. Clampitt dated October 15, 2014, incorporated by reference fromthe Registrant’sForm10-KfiledOctober21,2014,Exhibit10(i)thereto.

10(o) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandStanleyA.SewitchdatedOctober15,2014,incorporatedbyreferencefromtheRegistrant’sForm10-KfiledOctober21,2014,Exhibit10(j)thereto.

10(p) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandGarryO.RidgedatedFebruary14,2006.

10(q) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandMichaelL.FreemandatedFebruary14,2006.

10(r) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandGeoffreyJ.HoldsworthdatedFebruary14,2006.

10(s) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandWilliamB.NobledatedFebruary14,2006.

10(t) ChangeofControlSeveranceAgreementbetweenWD-40CompanyandStevenBrassdatedJune22,2016,incorporatedbyreferencefromtheRegistrant’sForm10-QfiledJanuary9,2017,Exhibit10(c)thereto

10(u) CreditAgreementdatedJune17,2011amongWD-40CompanyandBankofAmerica,N.A..

10(v) FirstAmendmenttoCreditAgreementdatedJanuary7,2013amongWD-40CompanyandBankofAmerica,N.A.,incorporatedbyreferencefromtheRegistrant’sForm10-QfiledJanuary9,2013,Exhibit10(b)thereto.

10(w) SecondAmendmenttoCreditAgreementdatedMay13,2015amongWD-40CompanyandBankofAmerica,N.A.,incorporatedbyreferencefromtheRegistrant’sForm8-K/AfiledMay18,2015,Exhibit10(a)thereto.

10(x) ThirdAmendmenttoCreditAgreementdatedNovember16,2015amongWD-40CompanyandBankofAmerica,N.A.,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledNovember19,2015,Exhibit10(a)thereto.

10(y) FourthAmendmenttoCreditAgreementdatedSeptember1,2016amongWD-40CompanyandBankofAmerica,N.A.,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledSeptember2,2016,Exhibit10(a)thereto.

10(z) PurchaseandSaleAgreementandEscrowInstructionsdatedJuly29,2016,incorporatedbyreferencefromtheRegistrant’sForm8-KfiledAugust4,2016,Exhibit10(a)thereto.

10(aa) StandardFormofAgreementbetweenOwnerandContractordatedFebruary23,2017andChangeOrder#1datedMarch9,2017betweenWD-40CompanyandBack’sConstruction,Inc.,incorporatedbyreferencefromtheRegistrant’sForm10-QfiledApril6,2017,Exhibit10(d)thereto.

21 SubsidiariesoftheRegistrant.

23 ConsentofIndependentRegisteredPublicAccountingFirmdatedOctober23,2017.

31(a) CertificationofChiefExecutiveOfficerpursuanttoSection302oftheSarbanes-OxleyActof2002.

31(b) CertificationofChiefFinancialOfficerpursuanttoSection302oftheSarbanes-OxleyActof2002.

32(a) CertificationofChiefExecutiveOfficerpursuanttoSection906oftheSarbanes-OxleyActof2002.

32(b) CertificationofChiefFinancialOfficerpursuanttoSection906oftheSarbanes-OxleyActof2002.

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Item 1 6 . Form 10-K S um mary

Notapplicable.

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WD-40COMPANYRegistrant

/s/JAYW.REMBOLTJAYW.REMBOLTVicePresident,FinanceTreasurerandChiefFinancialOfficerDate:October23,2017

/s/GARRYO.RIDGEGARRYO.RIDGEChiefExecutiveOfficerandDirector(PrincipalExecutiveOfficer)Date:October23,2017

/s/PETERD.BEWLEYPETERD.BEWLEY,DirectorDate:October23,2017

/s/DANIELT.CARTERDANIELT.CARTER,DirectorDate:October23,2017

/s/MELISSACLAASSENMELISSACLAASSEN,DirectorDate:October23,2017

/s/MARIOL.CRIVELLOMARIOL.CRIVELLO,DirectorDate:October23,2017

/s/ERICP.ETCHARTERICP.ETCHART,DirectorDate:October23,2017

/s/LINDAA.LANGLINDAA.LANG,DirectorDate:October23,2017

/s/DANIELE.PITTARDDANIELE.PITTARD,DirectorDate:October23,2017

/s/GREGORYA.SANDFORTGREGORYA.SANDFORT,DirectorDate:October23,2017

/s/NEALE.SCHMALENEALE.SCHMALE,DirectorDate:October23,2017

SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,theRegistranthasdulycausedthisannualreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,thisreporthasbeensignedbelowbythefollowingpersonsonbehalfoftheRegistrantandinthecapacitiesandonthedatesindicated.

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Report of Independent Registered Public Accounting Firm

TotheBoardofDirectorsandShareholdersofWD-40Company

Inouropinion,theaccompanyingconsolidatedbalancesheetsandtherelatedconsolidatedstatementsofoperations,ofcomprehensiveincome,ofshareholders’equityandofcashflowspresentfairly,inallmaterialrespects,thefinancialpositionofWD-40Companyanditssubsidiaries asofAugust31,2017and2016,andtheresultsoftheiroperationsand their cash flows for each of the three years in the period ended August 31, 201 7 in conformity with accountingprinciplesgenerally accepted in the United States ofAmerica.Alsoin our opinion, the Companymaintained, in all material respects, effective internal control over financial reportingas of August 31, 2017, basedoncriteriaestablishedinInternalControl-IntegratedFramework(2013)issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).TheCompany'smanagementisresponsibleforthesefinancialstatements,formaintainingeffectiveinternalcontroloverfinancialreportingandforitsassessmentoftheeffectivenessofinternalcontrol over financial reporting , included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A . Our responsibility is to expressopinionsonthesefinancialstatementsandontheCompany'sinternalcontroloverfinancialreportingbasedonourintegratedaudits.WeconductedourauditsinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Thosestandardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatementandwhethereffectiveinternalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.Ourauditsofthefinancialstatementsincludedexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements,assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,andevaluatingtheoverallfinancialstatementpresentation.Ourauditofinternalcontroloverfinancialreportingincluded obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design andoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Ourauditsalsoincludedperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.Webelievethatourauditsprovideareasonablebasisforouropinions.

Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancial statements for external purposes in accordance with generally accept ed accountingprinciples.A company’s internal control over financial reporting includes thosepoliciesandproceduresthat(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally acceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could havea materialeffectonthefinancialstatements.

Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures maydeteriorate.

/s/PricewaterhouseCoopersLLP

SanDiego,CaliforniaOctober23,2017

F-1

WD-40 COMPANYCONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

August 31, August 31,

2017 2016AssetsCurrentassets:Cashandcashequivalents $ 37,082 $ 50,891Short-terminvestments 80,166 57,633Tradeaccountsreceivable,lessallowancefordoubtfulaccountsof$240and$394atAugust31,2017and2016,respectively 64,259 64,680

Inventories 35,340 31,793Othercurrentassets 8,007 4,475

Totalcurrentassets 224,854 209,472Propertyandequipment,net 29,439 11,545Goodwill 95,597 95,649Otherintangibleassets,net 16,244 19,191Deferredtaxassets,net 495 621Otherassets 3,088 3,190

Totalassets $ 369,717 $ 339,668

Liabilities and Shareholders' EquityCurrentliabilities:Accountspayable $ 20,898 $ 18,690Accruedliabilities 18,997 15,757Accruedpayrollandrelatedexpenses 14,222 20,866Revolvingcreditfacility,currentportion 20,000 -Incometaxespayable 1,306 3,381

Totalcurrentliabilities 75,423 58,694Revolvingcreditfacility 134,000 122,000Deferredtaxliabilities,net 18,949 16,365Otherlong-termliabilities 1,958 2,214

Totalliabilities 230,330 199,273

CommitmentsandContingencies(Note11)

Shareholders'equity:Commonstock―authorized36,000,000shares,$0.001parvalue;19,688,238and19,621,820sharesissuedatAugust31,2017and2016,respectively;and13,984,183and14,208,338sharesoutstandingatAugust31,2017and2016,respectively 20 20

Additionalpaid-incapital 150,692 145,936Retainedearnings 315,764 289,642Accumulatedothercomprehensiveincome(loss) (28,075) (27,298)Commonstockheldintreasury,atcost―5,704,055and5,413,482sharesatAugust31,2017and2016,respectively (299,014) (267,905)

Totalshareholders'equity 139,387 140,395Totalliabilitiesandshareholders'equity $ 369,717 $ 339,668

Seeaccompanyingnotestoconsolidatedfinancialstatements.

F-2

WD-40 COMPANYCONSOLIDATED STATEM ENTS OF OPERATIONS

(In thousands, except per share amounts)

Fiscal Year Ended August 31,2017 2016 2015

Netsales $ 380,506 $ 380,670 $ 378,150Costofproductssold 166,621 166,301 177,972

Grossprofit 213,885 214,369 200,178

Operatingexpenses:Selling,generalandadministrative 114,560 117,767 108,873Advertisingandsalespromotion 20,537 22,278 22,876Amortizationofdefinite-livedintangibleassets 2,879 2,976 3,039

Totaloperatingexpenses 137,976 143,021 134,788

Incomefromoperations 75,909 71,348 65,390

Otherincome(expense):Interestincome 508 683 584Interestexpense (2,582) (1,703) (1,205)Otherincome(expense),net 787 2,461 (1,659)

Incomebeforeincometaxes 74,622 72,789 63,110Provisionforincometaxes 21,692 20,161 18,303

Netincome $ 52,930 $ 52,628 $ 44,807

Earningspercommonshare:Basic $ 3.73 $ 3.65 $ 3.05Diluted $ 3.72 $ 3.64 $ 3.04

Sharesusedinpersharecalculations:Basic 14,089 14,332 14,582Diluted 14,123 14,379 14,649

Seeaccompanyingnotestoconsolidatedfinancialstatements.

F-3

WD-40 COMPANYCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

Fiscal Year Ended August 31,2017 2016 2015

Netincome $ 52,930 $ 52,628 $ 44,807Othercomprehensiveloss:Foreigncurrencytranslationadjustment (777) (18,576) (9,825)

Totalcomprehensiveincome $ 52,153 $ 34,052 $ 34,982

Seeaccompanyingnotestoconsolidatedfinancialstatements.

F-4

WD-40 COMPANYCONSOLIDATED STATEMENTS O F SHAREHOLDERS' EQUITY

(In thousands, except share and per share amounts)

Accumulated

Additional Other Total

Common Stock Paid-in Retained Comprehensive Treasury Stock Shareholders'

Shares Amount Capital Earnings Income (Loss) Shares Amount Equity

Balance at August 31, 2014 19,464,310 $ 19 $ 136,212 $ 237,596 $ 1,103 4,709,948 $ (205,515) $ 169,415Issuanceofcommonstockundershare-basedcompensationplan,netofshareswithheldfortaxes 82,578 1 1,449 1,450

Stock-basedcompensation 2,782 2,782Taxbenefitsfromsettlementsofstock-basedequityawards 1,208 1,208

Cashdividends($1.48pershare) (21,720) (21,720)Acquisitionoftreasurystock 386,450 (30,259) (30,259)Foreigncurrencytranslationadjustment (9,825) (9,825)Netincome 44,807 44,807

Balance at August 31, 2015 19,546,888 $ 20 $ 141,651 $ 260,683 $ (8,722) 5,096,398 $ (235,774) $ 157,858Issuanceofcommonstockundershare-basedcompensationplan,netofshareswithheldfortaxes 74,932 (1,434) (1,434)

Stock-basedcompensation 3,655 3,655Taxbenefitsfromsettlementsofstock-basedequityawards 2,064 2,064

Cashdividends($1.64pershare) (23,669) (23,669)Acquisitionoftreasurystock 317,084 (32,131) (32,131)Foreigncurrencytranslationadjustment (18,576) (18,576)Netincome 52,628 52,628

Balance at August 31, 2016 19,621,820 $ 20 $ 145,936 $ 289,642 $ (27,298) 5,413,482 $ (267,905) $ 140,395Issuanceofcommonstockundershare-basedcompensationplan,netofshareswithheldfortaxes 66,418 (921) (921)

Stock-basedcompensation 4,138 4,138Taxbenefitsfromsettlementsofstock-basedequityawards 1,539 1,539

Cashdividends($1.89pershare) (26,808) (26,808)Acquisitionoftreasurystock 290,573 (31,109) (31,109)Foreigncurrencytranslationadjustment (777) (777)Netincome 52,930 52,930

Balance at August 31, 2017 19,688,238 $ 20 $ 150,692 $ 315,764 $ (28,075) 5,704,055 $ (299,014) $ 139,387

Seeaccompanyingnotestoconsolidatedfinancialstatements.

F-5

WD-40 COMPANYCONSOLIDATED STATE MENTS OF CASH FLOWS

(In thousands)

Fiscal Year Ended August 31,

2017 2016 2015Operatingactivities:

Netincome $ 52,930 $ 52,628 $ 44,807Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:Depreciationandamortization 6,769 6,465 6,464Netgainsonsalesanddisposalsofpropertyandequipment (115) (75) (71)Deferredincometaxes 1,608 (2,227) (1,334)Excesstaxbenefitsfromsettlementsofstock-basedequityawards (1,539) (2,064) (1,205)Stock-basedcompensation 4,138 3,655 2,782Unrealizedforeigncurrencyexchangelosses(gains),net 364 (986) 2,086Provisionforbaddebts (138) 52 302Changesinassetsandliabilities:

Tradeaccountsreceivable 482 (9,936) (314)Inventories (3,487) (1,001) 2,037Otherassets (3,514) 1,557 1,731Accountspayableandaccruedliabilities 2,827 2,871 (2,464)Accruedpayrollandrelatedexpenses (8,328) 5,486 (2,722)Incometaxespayable 605 4,235 2,737Otherlong-termliabilities (265) (56) 228

Netcashprovidedbyoperatingactivities 52,337 60,604 55,064

Investingactivities:Purchasesofpropertyandequipment (20,150) (4,354) (5,784)Proceedsfromsalesofpropertyandequipment 430 301 333Acquisitionofbusiness - - (4,117)Purchasesofshort-terminvestments (27,136) (24,899) (10,575)Maturitiesofshort-terminvestments 4,565 8,032 3,192

Netcashusedininvestingactivities (42,291) (20,920) (16,951)

Financingactivities:Treasurystockpurchases (31,109) (32,131) (30,259)Dividendspaid (26,808) (23,669) (21,720)Proceedsfromissuanceofcommonstock 775 1,200 2,111Excesstaxbenefitsfromsettlementsofstock-basedequityawards 1,539 2,064 1,205Netproceedsfromrevolvingcreditfacility 32,000 14,000 10,000

Netcashusedinfinancingactivities (23,603) (38,536) (38,663)Effectofexchangeratechangesoncashandcashequivalents (252) (4,153) (3,357)Netdecreaseincashandcashequivalents (13,809) (3,005) (3,907)Cashandcashequivalentsatbeginningofperiod 50,891 53,896 57,803Cashandcashequivalentsatendofperiod $ 37,082 $ 50,891 $ 53,896

Supplemental cash flow information:Cashpaidfor:

Interest $ 2,625 $ 1,573 $ 1,168Incometaxes,netoftaxrefundsreceived $ 21,933 $ 16,494 $ 15,414

Seeaccompanyingnotestoconsolidatedfinancialstatements.

F-6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. The Company

WD-40Company(“theCompany”),basedinSanDiego,California,isaglobalmarketingorganizationdedicatedtocreatingpositivelastingmemoriesbydevelopingandsellingproductsthatsolveproblemsinworkshops,factoriesandhomesaroundtheworld.TheCompanymarketsitsmaintenanceproductsanditshomecareandcleaningproductsunderthe following well-known brands: WD-40®, 3-IN-ONE®, GT85®, X-14®, 2000 Flushes®, Carpet Fresh®, no vac®, Spot Shot®, 1001®, Lava® and Solvol®. CurrentlyincludedintheWD-40brandaretheWD-40Multi-UseProductandtheWD-40Specialist®andWD-40BIKE®productlines.

TheCompany’sbrandsaresoldinvariouslocationsaroundtheworld.MaintenanceproductsaresoldworldwideinmarketsthroughoutNorth,CentralandSouthAmerica,Asia,Australia, Europe, the Middle East and Africa. Homecare and cleaning products are sold primarily in North America, the United Kingdom (“U.K.”) and Australia. TheCompany’sproductsaresoldprimarilythroughmassretailandhomecenterstores,warehouseclubstores,grocerystores,hardwarestores,automotivepartsoutlets,sportretailers,independentbikedealers,onlineretailersandindustrialdistributorsandsuppliers.

Note 2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Consolidation

TheconsolidatedfinancialstatementsincludetheaccountsoftheCompanyanditswholly-ownedsubsidiaries.Allintercompanytransactionsandbalanceshavebeeneliminatedinconsolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets,liabilities,revenuesandexpensesandthedisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatementsandthereportedamountsofrevenuesandexpensesduringthereportingperiods.Actualresultscoulddifferfromthoseestimates.

Supplier Risk

TheCompanyreliesonalimitednumberofsuppliers,includingsingleorsolesourcesuppliersforcertainofitsrawmaterials,packaging,productcomponentsandothernecessarysupplies.Wherepossibleandwhereitmakesbusinesssense,theCompanyworkswithsecondaryormultiplesupplierstoqualifyadditionalsupplysources.Todate,theCompanyhasbeenabletoobtainadequatesuppliesofthesematerialswhichareusedintheproductionofitsmaintenanceproductsandhomecareandcleaningproductsinatimelymannerfromexistingsources.

Cash and Cash Equivalents

Cashequivalentsarehighlyliquidinvestmentspurchasedwithanoriginalmaturityofthreemonthsorless.

Short-term Investments

TheCompany's short-terminvestments consist of termdeposits andcallable timedeposits . Theseshort-terminvestments hadacarryingvalueof$80.2millionand$ 57.6millionatAugust31,2017and2016,respectively.Thetermdepositsaresubjecttopenaltyforearlyredemptionbeforetheirmaturity,andthecallabletimedepositsrequireanoticebeforeredemption. Trade Accounts Receivable and Allowance for Doubtful Accounts

Tradeaccountsreceivablearerecordedattheinvoicedamountanddonotbearinterest. TheallowancefordoubtfulaccountsistheCompany’sbestestimateoftheamountofprobablecreditlossesinexistingaccountsreceivable.TheCompanydeterminestheallowancefordoubtfulaccountsbasedonhistoricalwrite-offexperienceandtheidentificationof specific balances deemed uncollectible. Trade accounts receivable are charged against the allowance when the Company believes it is probable that the trade accountsreceivable will not be recovered. The Company does not have any off-balance sheet credit exposurerelated to its customers.Allowance for doubtful accounts related to theCompany’stradeaccountsreceivablewerenotsignificantatAugust31,2017and2016.

F-7

Inventories

Inventories are stated at the lower of cost or market andcost is determinedbasedona first-in, first-out methodor, for a portion of rawmaterials inventory, the average costmethod. When necessary, the Company adjusts the carrying value of its inventory to the lower of cost or market, including any costs to sell or dispose of such inventory.AppropriateconsiderationisgivenbytheCompanytoobsolescence,excessiveinventorylevels,productdeteriorationandotherfactorswhenevaluatingnetrealizablevalueforthepurposesofdeterminingthelowerofcostormarket.

IncludedininventoriesareamountsforcertainrawmaterialsandcomponentsthattheCompanyhasprovidedtoitsthird-partycontractmanufacturersbutthatremainunpaidtotheCompanyasofthebalancesheetdate.TheCompany’scontractmanufacturerspackageproductstotheCompany’sspecificationsand,uponorderfromtheCompany,shipready-to-sellinventorytoeithertheCompany’sthird-partydistributioncentersordirectlytoitscustomers.TheCompanytransferscertainrawmaterialsandcomponentstothesecontract manufacturers for use in themanufacturing process. Contract manufacturers are obligated to paythe Companyfor theserawmaterials andcomponents uponreceipt.Amounts receivable from the contract manufacturers as of the balance sheet date related to transfers of these raw materials and components by the Company to its contractmanufacturersareconsideredproductheldatthird-partycontractmanufacturersandareincludedininventoriesintheaccompanyingconsolidatedbalancesheets.

Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method based upon estimated useful lives of tentofortyyears for buildings andimprovements,threetofifteenyearsformachineryandequipment,threetofiveyearsforvehicles,threetotenyearsforfurnitureandfixturesandthreetofiveyearsforsoftwareandcomputerequipment.Depreciationexpensetotaled$3.9million,$3.5millionand$3.4millionforfiscalyears2017,2016and2015,respectively.Theseamountsincludefactorydepreciationexpensewhichisrecognizedascostofproductssoldandtotaled$1.1millionforfiscalyear2017and$0.8millionforeachofthefiscalyearsendedAugust31,2016and2015.Software TheCompanycapitalizescostsrelatedtocomputersoftwareobtainedordevelopedforinternaluse.Softwareobtainedforinternalusehasgenerallybeenenterprise-levelbusinessandfinancesoftwarethattheCompanycustomizestomeetitsspecificoperationalneeds.Costsincurredintheapplicationdevelopmentphasearecapitalizedandamortizedovertheirusefullives,whicharegenerallythreetofiveyears.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of tangible and intangible assets acquired. The carrying value of goodwill is reviewed for possibleimpairmentinaccordancewiththeauthoritativeguidanceongoodwill,intangiblesandother.TheCompanyassessespossibleimpairmentstogoodwillatleastannuallyduringitssecondfiscal quarter andotherwisewheneventsorchangesincircumstancesindicatethat animpairmentconditionmayexist. Inperformingtheannualimpairmenttest ofitsgoodwill,theCompanyconsidersthefairvalueconceptsofamarketparticipantandthehighestandbestuseforitsintangibleassets.Inadditiontotheannualimpairmenttest,goodwillisevaluatedeachreportingperiodtodeterminewhethereventsandcircumstanceswouldmorelikelythannotreducethefairvalueofareportingunitbelowitscarryingvalue.

When testing goodwill for impairment, the Company first assess es qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwillimpairmenttest.If,afterassessingqualitativefactors,theCompanydeterminesitisnotmorelikelythannotthatthefairvalueofareportingunitislessthanitscarryingamount,thenperformingadditionalquantitativetestsisunnecessary.Otherwise,atwo-stepquantitativetestisperformedtoidentifythepotentialimpairmentandtomeasuretheamountofgoodwillimpairment,ifany.Anyrequiredimpairmentlossesarerecordedasareductioninthecarryingamountoftherelatedassetandchargedtoresultsofoperations.NogoodwillimpairmentswereidentifiedbytheCompanyduringfiscalyears2017,2016and2015.

Long-lived Assets

The Company’s long-lived assets consist of property and equipment and definite-lived intangible assets. Long-lived assets are depreciated or amortized, as applicable, on astraight-line basis over their estimated useful lives. The Company assesses potential impairments to its long-lived assets when there is evidence that events or changes incircumstancesindicatethatthecarryingamountofanassetmaynotberecoverableand/oritsremainingusefullifemaynolongerbeappropriate.Anyrequiredimpairmentlosswould be measured as the amount by which the asset’s carrying amount exceeds its fair value, which is the amount at which the asset could be bought or sold in a currenttransaction between willing market participants and would be recorded as a reduction in the carrying amount of the related asset and a charge to results of operations. Animpairmentlosswouldberecognizedwhen

F-8

thesumoftheexpectedfutureundiscountednetcashflowsislessthanthecarryingamountoftheasset.Noimpairmentstoitslong-livedassetswereidentifiedbytheCompanyduringfiscalyears2017,2016and2015.

Fair Value of Financial Instruments

AccountingStandardsCodification(“ASC”)820,“FairValueMeasurementsandDisclosures”,definesfairvalueastheexchangepricethatwouldbereceivedforanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.TheCompanycategorizesitsfinancialassetsandliabilitiesmeasuredatfairvalueintoahierarchythatcategorizesfairvaluemeasurementsintothefollowingthreelevelsbasedonthetypesofinputsusedinmeasuringtheirfairvalue:

Level1:Observableinputssuchasquotedmarketpricesinactivemarketsforidenticalassetsorliabilities;Level2:Observablemarket-basedinputsorobservableinputsthatarecorroboratedbymarketdata;andLevel3:UnobservableinputsreflectingtheCompany’sownassumptions.

Underfairvalueaccounting,assetsandliabilitiesareclassifiedintheirentiretybasedonthelowestlevelofinputthatissignificanttothefairvaluemeasurement.AsofAugust31,2017, theCompanyhadnoassetsorliabilities thataremeasuredat fair valueinthefinancial statementsonarecurringbasis, withtheexceptionoftheforeigncurrencyforwardcontracts,whichareclassifiedasLevel2withinthefairvaluehierarchy.Thecarryingvaluesofcashequivalents,short-terminvestmentsandshort-termborrowingsarerecordedatcost,whichapproximatestheirfairvaluesprimarilyduetotheirshort-termmaturitiesandareclassifiedasLevel2withinthefairvaluehierarchy.Inaddition,thecarryingvalueoflong-termborrowingsontheCompany’sconsolidatedbalancesheetsapproximatefairvalueandisalsoclassifiedasLevel2withinthefairvaluehierarchy.DuringthefiscalyearsendedAugust31,2017,2016and2015,theCompanydidnotrecordanysignificantnonrecurringfairvaluemeasurementsforassetsorliabilitiesinperiodssubsequenttotheirinitialrecognition.

Concentration of Credit Risk

Financialinstruments,whichpotentiallysubjecttheCompanytosignificantconcentrationsofcreditrisk,consistprincipallyofcashandcashequivalents,short-terminvestmentsandtradeaccountsreceivable.TheCompany’spolicyistoplaceitscashinhighcreditqualityfinancialinstitutions,ininvestmentsthatincludedemanddeposits,termdepositsandcallable timedeposits. TheCompany’s tradeaccounts receivable are derivedfromcustomers locatedin NorthAmerica, SouthAmerica, Asia-Pacific, Europe, theMiddleEast,AfricaandIndia.TheCompanylimitsitscreditexposurefromtradeaccountsreceivablebyperformingon-goingcreditevaluationsofcustomers,aswellasinsuringitstradeaccountsreceivableinselectedmarkets.

Insurance Coverage

TheCompanycarriesinsurancepoliciestocoverinsurableriskssuchaspropertydamage,businessinterruption, productliability, workers’compensationandotherrisks,withcoverageandothertermsthatitbelievestobeadequateandappropriate.Thesepoliciesmaybesubjecttoapplicabledeductibleorretentionamounts,coveragelimitationsandexclusions.TheCompanydoesnotmaintainself-insurancewithrespecttoitsmaterialrisks;therefore,theCompanyhasnotprovidedforself-insurancereservesasofAugust31,2017and2016.

Revenue Recognition and Sales Incentives

Salesarerecognizedasrevenueatthetimeofdeliverytothecustomerwhenrisksoflossandtitlehavepassed.Salesarerecordednetofallowancesfordamagedgoodsandothersalesreturns,salesincentives,tradepromotionsandcashdiscounts.

TheCompanyrecordsthecostsofpromotionalactivitiessuchassalesincentives,tradepromotions,couponoffersandcashdiscountsthataregiventoitscustomersasareductionofsalesinits consolidatedstatements of operations. TheCompanyoffers on-goingtradepromotionprogramswithcustomersandconsumercouponprogramsthat require theCompanytoestimateandaccruetheexpectedcostsforsuchprograms.Programsincludecooperativemarketingprograms,shelfpricereductions,coupons,rebates,considerationandallowancesgiventoretailersforshelfspaceand/orfavorabledisplaypositionsintheirstoresandotherpromotionalactivities.Costsrelatedtorebates,cooperativeadvertisingandotherpromotionalactivitiesarerecordedasareductiontosalesupondeliveryoftheCompany’sproductstoitscustomers.Couponcostsarebaseduponhistoricalredemptionratesandarerecordedasareductiontosalesasincurred,whichiswhenthecouponsarecirculated.

F-9

Cost of Products Sold

CostofproductssoldprimarilyincludesthecostofproductsmanufacturedontheCompany’sbehalfbyitsthird-partycontractmanufacturers,netofvolumeandotherrebates.CostofproductssoldalsoincludesthecoststomanufactureWD-40concentrate,whichisdoneattheCompany’sownfacilitiesoratthird-partycontractmanufacturers.WhentheconcentrateismanufacturedbytheCompany,costofproductssoldincludesdirectlabor,directmaterialsandsupplies;in-boundfreightcostsrelatedtopurchasedrawmaterialsandfinishedproduct;anddepreciationofmachineryandequipmentusedinthemanufacturingprocess.

Selling, General and Administrative Expenses

Selling,generalandadministrativeexpensesincludecostsrelatedtosellingtheCompany’sproducts,suchasthecostofthesalesforceandrelatedsalesandbrokercommissions;shipping and handling costs paid to third-party companies to distribute finished goods from the Company’s third-party contract manufacturers and distribution centers to itscustomers;othergeneralandadministrativecostsrelatedtotheCompany’sbusinesssuchasgeneraloverhead,legalandaccountingfees,insurance,anddepreciation;andotheremployee-relatedcoststosupportmarketing,humanresources,finance,supplychain,informationtechnologyandresearchanddevelopmentactivities.

Shipping and Handling Costs

Shippingandhandling costs associated with in-boundfreight andmovement of product fromthird-party contract manufacturers to the Company’s third-party warehouses arecapitalizedinthecostofinventoryandsubsequentlyincludedincostofsaleswhenrecognizedinthestatementofoperations.Shippingandhandlingcostsassociatedwithout-boundtransportationareincludedinselling,generalandadministrativeexpensesandarerecordedatthetimeofshipmentofproducttotheCompany’scustomers.Out-boundshippingandhandlingcostswere$16.4million,$16.1 millionand$15.8millionforfiscalyears2017,2016and2015,respectively.

Advertising and Sales Promotion Expenses

Advertising and sales promotion expenses are expensed as incurred. Advertising and sales promotion expenses include costs associated with promotional activities that theCompany pays to third parties, which include costs for advertising (television, print media and internet), administration of coupon programs, consumer promotions, productdemonstrations,publicrelations,agencycosts,packagedesignexpensesandmarketresearchcosts. Totaladvertisingandsalespromotionexpenseswere$20.5million,$22.3millionand$22.9millionforfiscalyears2017,2016and2015,respectively.

Research and Development

TheCompanyisinvolvedinresearchanddevelopmenteffortsthatincludetheongoingdevelopmentorinnovationofnewproductsandtheimprovement,extensionorrenovationofexistingproductsorproductlines.Allresearchanddevelopmentcostsareexpensedasincurredandareincludedinselling,generalandadministrativeexpenses.Researchanddevelopmentexpenseswere$8.4million,$7.7millionand$9.0millioninfiscalyears2017,2016and2015,respectively.Theseexpensesincludecostsassociatedwithgeneralresearchanddevelopmentactivities,aswellasthoseassociatedwithinternalstaff,overhead,designtesting,marketresearchandconsultants.

Income Taxes

Currentincometaxexpenseistheamountofincometaxesexpectedtobepayableforthecurrentyear. Adeferredincometaxliabilityorassetis establishedfortheexpectedfuturetaxconsequencesresultingfromthedifferencesinfinancialreportingandtaxbasesofassetsandliabilities.Avaluationallowanceisprovidedifitismorelikelythannotthatsomeorallofthedeferredtaxassetswillnotberealized.Inadditiontovaluationallowances,theCompanyprovidesforuncertaintaxpositionswhensuchtaxpositionsdonot meet the recognition thresholds or measurement standards prescribed by the authoritative guidance on income taxes. Amounts for uncertain tax positions are adjusted inperiods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest and penalties related to uncertain taxpositionsasacomponentofincometaxexpense.

U.S.federalincometaxexpenseisprovidedonremittancesofforeignearningsandonunremittedforeignearningsthatarenotindefinitelyreinvested.U.S.federalincometaxesand foreign withholding taxes are not provided when foreign earnings are indefinitely reinvested. The Company determines whether its foreign subsidiaries will invest theirundistributed earnings indefinitely based on the capital needs of the foreign subsidiaries and reassesses this determination each reporting period. Changes to the Company’sdeterminationmaybewarrantedbasedontheCompany’sexperienceaswellasitsplansregardingfutureinternationaloperationsandexpectedremittances.

F-10

Foreign Currency

TheCompanytranslatestheassetsandliabilitiesofitsforeignsubsidiariesintoU.S.dollarsatcurrentratesofexchangeineffectattheendofthereportingperiod.Incomeandexpenseitemsaretranslatedatratesthatapproximatetheratesineffectatthetransactiondate.Gainsandlossesfromtranslationareincludedinaccumulatedothercomprehensiveincomeorloss.Gainsorlossesresultingfromforeigncurrencytransactions(transactionsdenominatedinacurrencyotherthantheentity’sfunctionalcurrency)areincludedasotherincome(expense)intheCompany’sconsolidatedstatementsofoperations.TheCompanyhad$0.4millionand$2.4millionofnetgainsinforeigncurrencytransactionsinfiscalyears2017and2016,respectively,and$1.7millionofnetlossesinfiscalyear2015.

In the normal course of business, the Company employs established policies and procedures to manage its exposure to fluctuations in foreign currency exchange rates. TheCompany’s U.K. subsidiary, whose functional currency is Pound Sterling, utilizes foreign currency forward contracts to limit its exposure to net asset balances held in non-functional currencies, specifically the Euro. The Company regularly monitors its foreign currency exchange rate exposures to ensure the overall effectiveness of its foreigncurrency hedge positions. While the Company engages in foreign currency hedging activity to reduce its risk, for accounting purposes, none of its foreign currency forwardcontractsaredesignatedashedges.

Foreigncurrencyforwardcontractsarecarriedatfairvalue,withnetrealizedandunrealizedgainsandlossesrecognizedcurrentlyinotherincome(expense)intheCompany’sconsolidatedstatementsofoperations.Cashflowsfromsettlementsofforeigncurrencyforwardcontractsareincludedinoperatingactivitiesintheconsolidatedstatementsofcashflows.Foreigncurrencyforwardcontractsinanassetpositionattheendofthereportingperiodareincludedinothercurrentassets,whileforeigncurrencyforwardcontractsinaliability position at the endof the reporting period are includedin accrued liabilities in the Company’s consolidated balance sheets. At August 31, 2017, the Companyhadanotionalamountof$23.4millionoutstandinginforeigncurrencyforwardcontracts,whichmaturedinSeptember2017.Unrealizednetlossesrelatedtoforeigncurrencyforwardcontractswere$0.6millionatAugust31,2017,whileunrealizednetgainsandlosseswerenotsignificantatAugust31,2016.Realizednetlossesrelatedtoforeigncurrencyforwardcontractswere$0.5millionforthefiscalyearendedAugust31,2017,whilerealizednetgainsandlosseswerenotsignificantforthefiscalyearendedAugust31,2016.

Earnings per Common Share

Unvestedshare-basedpaymentawardsthatcontainnonforfeitablerightstodividendsordividendequivalents,whetherpaidorunpaid,areparticipatingsecuritiesthatarerequiredtobeincludedinthecomputationofearningspercommonsharepursuanttothetwo-classmethod.Accordingly,theCompany’soutstandingunvested,ifany,andoutstandingvestedstock-basedequityawardsthatprovidesuchnonforfeitablerightstodividendequivalentsareincludedasparticipatingsecuritiesinthecalculationofearningspercommonshare(“EPS”)pursuanttothetwo-classmethod.

TheCompanycalculatesEPSusingthetwo-classmethod,whichprovidesforanallocationofnetincomebetweencommonstockandotherparticipatingsecuritiesbasedontheirrespectiveparticipationrightstoshareindividends.BasicEPSiscalculatedbydividingnetincomeavailabletocommonshareholdersfortheperiodbytheweighted-averagenumberofcommonsharesoutstandingduringtheperiod.Netincomeavailabletocommonshareholdersfortheperiodincludesdividendspaidtocommonshareholdersduringtheperiodplusaproportionateshareofundistributednetincomeallocabletocommonshareholdersfortheperiod;theproportionateshareofundistributednetincomeallocabletocommonshareholdersfortheperiodisbasedontheproportionateshareoftotalweighted-averagecommonsharesandparticipatingsecuritiesoutstandingduringtheperiod.

DilutedEPSiscalculatedbydividingnetincomeavailabletocommonshareholdersfortheperiodbytheweighted-averagenumberofcommonsharesoutstandingduringtheperiod increased by the weighted-average number of potentially dilutive common shares (dilutive securities) that were outstanding during the period if the effect is dilutive.Dilutive securities are comprisedof stockoptions, restricted stockunits ,marketshareunitsanddeferredperformanceunitsgrantedunder theCompany’s prior andcurrentequityincentiveplans.

Stock-based Compensation

TheCompanyaccountsforstock-basedequityawardsexchangedforemployeeandnon-employeedirectorservicesinaccordancewiththeauthoritativeguidanceforshare-basedpayments.Undersuchguidance,stock-basedcompensationexpenseismeasuredatthegrantdate,basedontheestimatedfairvalueoftheaward,andisrecognizedasexpense,netofestimatedforfeitures,overtherequisiteserviceperiod.Compensationexpenseisamortizedonastraight-linebasisovertherequisiteserviceperiodfortheentireaward,whichisgenerallythemaximumvestingperiodoftheaward.

ThefairvalueofstockoptionsisdeterminedusingaBlack-Scholesoptionpricingmodel.ThefairvaluesofrestrictedstockunitawardsanddeferredperformanceunitawardsarebasedonthefairvalueoftheCompany’scommonstockonthedatethatsuchawardsaregranted.ThefairvalueofmarketshareunitawardsisdeterminedusingaMonteCarlosimulationmodel.Forthe

F-11

deferred performance unit awards, the Company adjusts the compensation expense over the service period based upon the expected achievement level of the applicableperformancecondition. Asthegrant datefair valueofmarket shareunit awardsreflects theprobabilities of theactual numberof suchawardsexpectedtovest, compensationexpenseforsuchawardsisnotadjustedbasedontheexpectedachievementleveloftheapplicableperformancecondition.Anestimatedforfeiturerateisappliedandincludedinthecalculationofstock-basedcompensationexpenseatthetimethatthestock-basedequityawardsaregrantedandrevised,ifnecessary,insubsequentperiodsifactualforfeitureratesdifferfromthoseestimates.CompensationexpenserelatedtotheCompany’sstock-basedequityawardsisrecordedasselling,generalandadministrativeexpensesintheCompany’sconsolidatedstatementsofoperations.

TheCompanycalculatesitswindfalltaxbenefitsadditionalpaid-incapitalpoolthatisavailabletoabsorbtaxdeficienciesinaccordancewiththeshort-cutmethodprovidedforbytheauthoritativeguidanceforshare-basedpayments.AsofAugust31,2017,theCompanydeterminedthatithasaremainingpoolofwindfalltaxbenefits.

Segment Information

TheCompanydisclosescertaininformationaboutitsbusinesssegments,whicharedeterminedconsistentwiththewaytheCompany’sChiefOperatingDecisionMakerorganizesandevaluatesfinancialinformationinternallyformakingoperatingdecisionsandassessingperformance.Inaddition,theChiefOperatingDecisionMakerassessesandmeasuresrevenuebasedonproductgroups.

Recently Adopted Accounting Standards

InAugust2014,theFASBissuedASUNo.2014-15,“DisclosureofUncertaintiesaboutanEntity’sAbilitytoContinueasaGoingConcern”.Thisupdatedguidancerequiresmanagementtoevaluatewhetherthereissubstantial doubtaboutanentity's abilitytocontinueasagoingconcernwithinoneyearofthedatethatthefinancial statementsareissuedandproviderelateddisclosuresifnecessary.ThisguidanceiseffectiveforthefirstannualfiscalperiodendingafterDecember15,2016,andforallinterimandannualperiods thereafter. The Companyadopted this guidance in the fourth quarter of fiscal year 2017on a prospective basis and there was no impact on its consolidated financialstatementsandrelateddisclosures.

Recently Issued Accounting Standards

InMay2017,theFinancialAccountingStandardsBoard(“FASB”)issuedASUNo.2017-09,“ScopeofModificationAccounting”,toreducediversityinpracticeandprovideclarityregardingexistingguidanceinASC718,“StockCompensation”.Theamendmentsinthisupdatedguidanceclarifythatanentityshouldapplymodificationaccountinginresponsetoachangeinthetermsandconditionsofanentity’sshare-basedpaymentawardsunlessthreenewlyspecifiedcriteriaaremet .ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2017,includinginterimperiodswithinthatreportingperiod.Earlyadoptionispermitted.TheCompanyhasevaluatedthepotentialimpactsofthisupdatedguidance,anditdoesnotexpecttheadoptionofthisguidancetohaveamaterialimpactonitsconsolidatedfinancialstatementsandrelateddisclosures.

In January 2017, theFASB issued ASUNo. 2017-04,“Simplifying the Test for Goodwill Impairment”.This updatedguidanceeliminates Step 2 fromthe current two-stepquantitativemodelforgoodwillimpairmenttests.Step2requiredanentitytocalculateanimpliedfairvalue,whichincludedahypotheticalpurchasepriceallocationrequirement,forreportingunitsthatfailedStep1.Perthisupdatedguidance,agoodwillimpairmentwillinsteadbemeasuredastheamountbywhichareportingunit’scarryingvalueexceedsitsfairvalueasidentifiedinStep1.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2019,includinginterimperiodswithinthatreportingperiod.EarlyadoptionispermittedforinterimorannualgoodwillimpairmenttestsperformedontestingdatesafterJanuary1,2017.TheCompanyhasevaluatedthepotentialimpactsofthisupdatedguidance,anditdoesnotexpecttheadoptionofthisguidancetohaveamaterialimpactonitsconsolidatedfinancialstatementsandrelateddisclosures.

In October 2016, the FASB issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory”,which requires an entity to recognize the income taxconsequencesofanintra-entitytransferofanassetotherthaninventorywhenthetransferoccurs.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2017,including interim periods within that reporting period. Early adoption is permitted in the first interim period of an entity's annual financial statements . The Company hasevaluatedthepotentialimpactsofthisupdatedguidance,anditdoesnotexpecttheadoptionofthisguidancetohaveamaterialimpactonitsconsolidatedfinancialstatementsandrelateddisclosures.

InAugust2016,theFASBissuedASUNo.2016-15,“ClassificationofCertainCashReceiptsandCashPayments”.Theamendmentsinthisupdatedguidanceaddresseightspecificcashflowissuestoreducetheexistingdiversityinpracticeinhowcertaincashreceiptsandcashpaymentsarepresentedandclassifiedinthestatementofcashflows.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2017,includinginterimperiodswithinthatreportingperiod.Earlyadoptionis

F-12

permitted and should be applied using a retrospective approach. The Companyis in the process of evaluating the potential impacts of this newguidance on its consolidatedfinancialstatements.

InJune2016,theFASBissuedASUNo.2016-13,“MeasurementofCreditLossesonFinancialInstruments”,whichrequiresentitiestoestimateallexpectedcreditlossesforcertaintypesoffinancial instruments, includingtradereceivables, heldat thereportingdatebasedonhistorical experience, current conditions, andreasonableandsupportableforecasts.Theupdatedguidancealsoexpandsthedisclosurerequirementstoenableusersoffinancialstatementstounderstandtheentity’sassumptions,modelsandmethodsforestimating expectedcredit losses. This guidanceis effective for fiscal years beginningafter December 15, 2019, includinginterimperiods within that reportingperiod. Earlyadoptionispermitted.TheCompanyisintheprocessofevaluatingthepotentialimpactsofthisnewguidanceonitsconsolidatedfinancialstatements.

InMarch2016,theFASBissuedASUNo.2016-09,“ImprovementstoEmployeeShare-BasedPaymentAccounting”.Theamendmentsinthisupdatedguidanceincludechanges to simplify the Codification for several aspects of the accounting for share-based payment transactions, including those related to the income tax consequences,classificationofawardsaseitherequityorliabilities,accountingforforfeitures,minimumstatutorywithholdingrequirementsandclassificationofcertainitemsonthestatementofcashflows.Certainofthesechangesarerequiredtobeappliedretrospectivelywhileotherchangesarerequiredtobeappliedprospectively.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2016,includinginterimperiodswithinthatreportingperiod.Earlyadoptionwaspermitted.TheCompanydidnotadoptthisupdatedguidanceearlyandthereforethisguidancewillbecomeeffectivefortheCompanyduringthefirstquarteroffiscalyear2018.TheCompanyexpectsthattheadoptionofthisnewguidancewillhaveamorethaninconsequentialimpactontheCompany’sconsolidatedfinancialstatements.Forexample,iftheCompanyhadadoptedthisupdatedguidanceinfiscalyear2017,itsincometaxexpensefortheyearwouldhavebeenreducedbyapproximately$1.5millionduetotherecognitionofexcesstaxbenefitsintheprovisionforincometaxesratherthanthroughadditionalpaid-in-capital.TheCompanyalsoexpectstochangeitspolicyrelatedtoforfeituresuponadoptionofthisnewguidancesuchthatitwillrecognizetheimpactsofforfeituresastheyoccurratherthanrecognizingthembasedonanestimatedforfeiturerate.AlthoughtheCompanyisstillassessingtheimpactsofthischangeinpolicyforforfeituresonitsconsolidatedfinancialstatements,itdoesnotexpectthattheimpactwillbematerial.Inaddition,theCompany’spresentationofemployeetaxespaidon shares of certain equity awards withheld by the Company for tax-withholding purposes will be reported as a financing activity instead of an operating activity in theConsolidatedStatement of Cash Flows, while the excess tax benefits fromsettlements of stock-based equity awards will be reported as an operating activity under this newguidance.

InFebruary2016,theFASBissuedASUNo.2016-02,“Leases”.Thenewstandardestablishesaright-of-usemodelthatrequiresalesseetorecordaright-of-useassetandaleaseliabilityonthebalancesheetforallleaseswithtermslongerthantwelvemonths.Leaseswillbeclassifiedaseitherfinanceoroperating,withclassificationaffectingthepatternof expenserecognitionintheincomestatement. This guidanceis effective for fiscal years beginningafter December 15, 2018, includinginterimperiods within thatreportingperiod.Earlyadoptionispermittedandshouldbeappliedusingamodifiedretrospectiveapproach.TheCompanyisintheprocessofevaluatingtheimpactsofthisnewguidanceonitsconsolidatedfinancialstatementsandrelateddisclosures.

InMay2014,theFASBissuedASUNo.2014-09,“RevenuefromContractswithCustomers”,whichsupersedestherevenuerecognitionrequirementsinASC605,“RevenueRecognition”.Thecoreprincipleofthisupdatedguidanceandrelatedamendmentsisthatanentityshouldrecognizerevenuetodepictthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitledinexchangeforthosegoodsorservices.ThisnewguidancerequiresanentitytorecognizerevenueforproductsalesatthepointintimeinwhichcontrolofgoodstransferstotheCompany’scustomerswhich,asdefined,couldbedifferentthanthepointintimeinwhichrevenuehadbeenrecognizedbytheCompanyunderexistingU.S.GAAP,whichwasbasedonwhentitleandtherisksandrewardsofownershipweretransferredtothecustomer. Thenewguidancealsorequiresadditional disclosure aboutthenature, amount, timinganduncertaintyofrevenueandcashflowsarisingfromcustomercontracts,including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. Although early adoption is permitted,theCompanyhasconcludedthat it will not adopt this guidanceearlyandit will becomeeffectivefortheCompanyonSeptember1, 2018. TheCompanywill adoptthis newguidancefollowingthemodifiedretrospectiveapproachandwill recognizethecumulativeeffect ofinitially applyingtheguidanceasanadjustment totheopeningbalanceofretainedearningsonSeptember1,2018.ManagementisintheprocessofadetailedreviewoftheCompany’scustomercontractswhichisfocusedprincipallyon,butnotlimitedto,identifyingthepointintimeatwhichthecontrolofgoodstransferstocustomers.ManagementisnearingthecompletionofthisreviewandisstillintheprocessofdeterminingtheimpactsthatthisnewguidancewillhaveontheCompany'sconsolidatedfinancialstatementsandrelateddisclosures.

F-13

Note 3. Inventories

Inventoriesconsistedofthefollowing(inthousands):

August 31, August 31,2017 2016

Productheldatthird-partycontractmanufacturers $ 3,021 $ 3,521Rawmaterialsandcomponents 3,021 2,996Work-in-process 215 163Finishedgoods 29,083 25,113

Total $ 35,340 $ 31,793

Note 4. Property and Equipment

Propertyandequipment,net,consistedofthefollowing(inthousands):

August 31, August 31,2017 2016

Machinery,equipmentandvehicles $ 17,491 $ 14,892Buildingsandimprovements 16,953 4,223Computerandofficeequipment 4,552 3,605Software 7,947 7,392Furnitureandfixtures 1,608 1,286Capitalinprogress 861 2,200Land 3,453 254

Subtotal 52,865 33,852Less:accumulateddepreciationandamortization (23,426) (22,307)

Total $ 29,439 $ 11,545

Note 5. Goodwill and Other Intangible Assets

Acquisitions

Duringthe first quarter of fiscal year 2015, the Company entered into an agreement by and between GT 85 Limited (“GT85”) and WD-40 Company Limited, which is theCompany’sU.K.subsidiary,toacquiretheGT85businessandcertainofitsassetsforapurchaseconsiderationof$4.1million.Ofthispurchaseconsideration,$3.7millionwaspaidincashuponcompletionoftheacquisition(“completion”)andtheremainingbalancewaspaidinJune2015.LocatedintheU.K.,theGT85businesswasengagedinthemarketingandsaleoftheGT85®andSG85brandsofmaintenanceproducts.ThisacquisitioncomplementstheCompany’smaintenanceproductsandwillhelptobuilduponitsstrategytodevelopnewproductcategoriesforWD-40SpecialistandWD-40BIKE.

Thepurchasepricewasallocatedtocertaincustomer-related, tradename-related, andtechnology-basedintangibleassets intheamountof$1.7million,$0.9million,and$0.2million,respectively.TheCompanybegantoamortizethesedefinite-livedintangibleassetsonastraight-linebasisovertheirestimatedusefullivesofeight,ten,andfouryears,respectively,inthefirstquarteroffiscalyear2015.Thepurchasepriceexceededthefairvalueoftheintangibleassetsacquiredand,asaresult,theCompanyrecordedgoodwillof$1.3millioninconnectionwiththistransaction.ThisacquisitiondidnothaveamaterialimpactontheCompany’scondensedconsolidatedfinancialstatements,andasaresultnoproformadisclosureshavebeenpresented.

F-14

Goodwill

Thefollowingtablesummarizesthechangesinthecarryingamountsofgoodwillbysegment(inthousands):

Americas EMEA Asia-Pacific TotalBalanceasofAugust31,2015 $ 85,532 $ 9,667 $ 1,210 $ 96,409

Translationadjustments (80) (680) - (760)BalanceasofAugust31,2016 85,452 8,987 1,210 95,649

Translationadjustments (4) (48) - (52)BalanceasofAugust31,2017 $ 85,448 $ 8,939 $ 1,210 $ 95,597

Duringthesecondquarteroffiscalyear2017,theCompanyperformeditsannualgoodwillimpairmenttest.Theannualgoodwillimpairmenttestwasperformedatthereportingunit level , which resides at a component level below the Company’s operating segment level and for which discrete financial information is available, as required by theauthoritativeguidance.TheCompanyperformedaqualitativeassessmentofeachreportingunittodeterminewhetheritwasmorelikelythannotthatthefairvalueofareportingunitwaslessthanitscarryingamount.Inperformingthisqualitativeassessment,theCompanyassessedrelevanteventsandcircumstancesthatmayimpactthefairvalueandthecarrying amount of each of its reporting units. Factors that were considered included, but were not limited to, the following: (1) macroeconomic conditions; (2) industry andmarketconditions;(3)historicalfinancialperformanceandexpectedfinancialperformance;(4)otherentityspecificevents,suchaschangesinmanagementorkeyemployees;and(5)eventsaffectingtheCompany’sreportingunits, suchasachangeinthecompositionofnetassetsoranyexpecteddispositions.Basedontheresultsofthisqualitativeassessment, the Company determined that it is more likely than not that the carrying value of each of its reporting units is less than its fair value and, thus, the two-stepquantitativeanalysiswasnotrequired.Asaresult,theCompanyconcludedthatnoimpairmentofitsgoodwillexistedasofFebruary28,2017.

Inaddition,therewerenoindicatorsofimpairmentidentifiedasaresultoftheCompany’sreviewofeventsandcircumstancesrelatedtoitsgoodwillsubsequenttoFebruary28,2017,thedateofitsmostrecentannualgoodwillimpairmenttest.Todate,therehavebeennoimpairmentlossesidentifiedandrecordedrelatedtotheCompany’sgoodwill.

Definite-lived Intangible Assets

TheCompany’s definite-lived intangible assets, which include the 2000Flushes, Spot Shot, Carpet Fresh, 1001and GT85trade names, the Belgiumcustomer list, the GT85customer relationships and the GT85 technology are included in other intangible assets, net in the Company’s condensed consolidated balance sheets. The following tablesummarizesthedefinite-livedintangibleassetsandtherelatedaccumulatedamortization(inthousands):

August 31, August 31,2017 2016

Grosscarryingamount $ 35,891 $ 36,009Accumulatedamortization (19,647) (16,818)

Netcarryingamount $ 16,244 $ 19,191

TherehasbeennoimpairmentchargefortheperiodendedAugust31,2017asaresultoftheCompany’sreviewofeventsandcircumstancesrelatedtoitsexistingdefinite-livedintangibleassets.

Changesinthecarryingamountsofdefinite-livedintangibleassetsbysegmentaresummarizedbelow(inthousands):

Americas EMEA Asia-Pacific TotalBalanceasofAugust31,2015 $ 17,121 $ 5,840 $ - $ 22,961

Amortizationexpense (2,208) (768) - (2,976)Translationadjustments - (794) - (794)

BalanceasofAugust31,2016 14,913 4,278 - 19,191Amortizationexpense (2,207) (672) - (2,879)Translationadjustments - (68) - (68)

BalanceasofAugust31,2017 $ 12,706 $ 3,538 $ - $ 16,244

F-15

TheestimatedamortizationexpensefortheCompany’sdefinite-livedintangibleassetsinfuturefiscalyearsisasfollows(inthousands):

Trade Names Customer-Based TechnologyFiscalyear2018 $ 2,419 $ 446 $ 33Fiscalyear2019 2,414 259 -Fiscalyear2020 2,019 165 -Fiscalyear2021 1,230 165 -Fiscalyear2022 1,229 165 -Thereafter 5,700 - -

Total $ 15,011 $ 1,200 $ 33

Includedinthetotalestimatedfutureamortizationexpenseistheamortizationexpenseforthe1001tradenameandtheGT85intangibleassets,whicharebasedoncurrentforeigncurrencyexchangerates,andasaresultamountsinfutureperiodsmaydifferfromthosepresentedduetofluctuationsinthoserates.

Note 6. Accrued and Other Liabilities

Accruedliabilitiesconsistedofthefollowing(inthousands):

August 31, August 31,2017 2016

Accruedadvertisingandsalespromotionexpenses $ 10,889 $ 9,763Accruedprofessionalservicesfees 1,456 1,262Accruedsalestaxesandothertaxes 1,701 954Other 4,951 3,778

Total $ 18,997 $ 15,757

Accruedpayrollandrelatedexpensesconsistedofthefollowing(inthousands):

August 31, August 31,2017 2016

Accruedincentivecompensation $ 6,554 $ 12,203Accruedpayroll 3,338 3,559Accruedprofitsharing 2,257 2,716Accruedpayrolltaxes 1,503 1,744Other 570 644

Total $ 14,222 $ 20,866

Note 7. Debt

RevolvingCreditFacility

On June 17, 2011, the Company entered into an unsecured credit agreement with Bank of America, N.A. (“Bank of America”). Since June 17, 2011, this unsecured creditagreement has been amended four times, most recently on September 1, 2016, (the “Fourth Amendment”). This Fourth Amendment amended the credit agreement inconnectionwiththepurchaseoftheCompany’snewofficebuildingandrelatedlandlocatedat9715BusinessparkAvenue,SanDiego,California(the“Property”).TheFourthAmendment permits the Companyto spend$18.0million in aggregate for the acquisition andimprovement costs for the Property, with anyexcess applied against the$7.5millionpermittedannuallybytheamendedagreementforothercapitalexpenditures.Inaddition,theFourthAmendmentalsoincludeschangestotheagreementthatwillallow,asapermittedlien,anyagreementwithBankofAmericaforsecureddebt.

Per the terms of the amended agreement, the revolving commitment may not exceed $175.0million and the aggregate amount of the Company’s capital stock that it mayrepurchasemaynotexceed$150.0millionduringtheperiodfromNovember16,2015tothematuritydateoftheagreementsolongasnodefaultexistsimmediatelypriorandaftergivingeffectthereto.ThisrevolvingcreditfacilitymaturesonMay13,2020,andincludesrepresentations,warrantiesandcovenantscustomaryforcreditfacilitiesof

F-16

this type, as well as customary events of default and remedies. In addition, per the terms of the amended agreement, the Company and Bank of America may enter into anautoborrow agreement in form and substance satisfactory to Bank of America, providing for the automatic advance of revolving loans in U.S. Dollars to the Company’sdesignatedaccountatBankofAmerica.Inthesecondquarteroffiscalyear2016,theCompanyenteredintoanautoborrowagreementwithBankofAmericaandthisagreementhasbeenineffectsincethattime

Forthefinancial covenants, thedefinitionof consolidatedEBITDAincludes theaddbackof non-cashstock-basedcompensationtoconsolidatednet incomewhenarrivingatconsolidatedEBITDA.Thetermsofthefinancialcovenantsareasfollows:

· Theconsolidatedleverageratiocannotbegreaterthanthreetoone.Theconsolidatedleverageratiomeans,asofanydateofdetermination,theratioof(a)consolidatedfundedindebtednessasofsuchdateto(b)consolidatedEBITDAforthemostrecentlycompletedfourfiscalquarters.

· Theconsolidatedinterestcoverageratiocannotbelessthanthreetoone.Theconsolidatedinterestcoverageratiomeans,asofanydateofdetermination,theratioof(a)consolidatedEBITDAforthemostrecentlycompletedfourfiscalquartersto(b)consolidatedinterestchargesforthemostrecentlycompletedfourfiscalquarters

SincetheautoborrowfeatureprovidesforborrowingstobemadeandrepaidbytheCompanyonadailybasis,anysuchborrowingsmadeunderanactiveautoborrowagreementareclassifiedasshort-termontheCompany’sconsolidatedbalancesheets.TheCompanyhadnobalanceundertheautoborrowagreementasofAugust31,2017.Inaddition,theCompanyassessesitsabilityandintenttorefinancetheoutstandingdrawsonthelineofcreditattheendofeachreportingperiodinordertodeterminetheproperbalancesheetclassificationforamountsoutstandingonthelineofcredit.DuringthefiscalyearendedAugust31,2017,theCompanyborrowed$20.0milliononthelineofcreditwhichitintendstorepayinlessthantwelvemonths.Asaresult,theCompanyhasclassified$20.0millionborrowedundertherevolvingcreditfacilityduringthefiscalyearendedAugust31,2017asshort-termonitsconsolidatedbalancesheets.

Inadditiontothe$20.0millioninborrowingsclassifiedasshort-term,theCompanyborrowedanadditional$12.0millionU.S.DollarsundertherevolvingcreditfacilityduringthefiscalyearendedAugust31,2017.Basedonmanagement’sabilityandintenttorefinancethesenewdrawsandremainderoftheCompany’sshort-termborrowingsunderthefacilitywithsuccessiveshort-termborrowingsforaperiodofatleasttwelvemonths,theCompanyhasclassified$134.0millionoutstandingundertherevolvingcreditfacilityasalong-termliabilityat August31,2017. TheCompanyregularlyconverts existingdrawsonits lineof credit tonewdrawswithnewmaturity datesandinterest rates. AsofAugust31,2017,theCompanyhada$154.0millionoutstandingbalanceontherevolvingcreditfacilityandwasincompliancewithalldebtcovenantsunderthiscreditfacility.

Note 8 . Share Repurchase Plans

OnJune21,2016,theCompany’sBoardofDirectorsapprovedasharebuy-backplan.Undertheplan,whichbecameeffectiveonSeptember1,2016,theCompanyisauthorizedtoacquireupto$75.0millionofitsoutstandingsharesthroughAugust31,2018.ThetimingandamountofrepurchasesarebasedontermsandconditionsasmaybeacceptabletotheCompany’sChiefExecutiveOfficerandChiefFinancial Officerandincompliancewithall lawsandregulationsapplicablethereto.DuringtheperiodfromSeptember1,2016throughAugust31,2017,theCompanyrepurchased290,573sharesatatotalcostof$31.1millionunderthis$75.0millionplan.

F-17

Note 9. Earnings per Common Share

Thetablebelowreconcilesnetincometonetincomeavailabletocommonshareholders(inthousands):

Fiscal Year Ended August 31,2017 2016 2015

Netincome $ 52,930 $ 52,628 $ 44,807Less:Netincomeallocatedtoparticipatingsecurities (323) (334) (271)Netincomeavailabletocommonshareholders $ 52,607 $ 52,294 $ 44,536

Thetablebelowsummarizestheweighted-averagenumberofcommonsharesoutstandingincludedinthecalculationofbasicanddilutedEPS(inthousands):

Fiscal Year Ended August 31,2017 2016 2015

Weighted-averagecommonsharesoutstanding,basic 14,089 14,332 14,582Weighted-averagedilutivesecurities 34 47 67Weighted-averagecommonsharesoutstanding,diluted 14,123 14,379 14,649

Therewerenoanti-dilutivestock-basedequityawardsoutstandingforthefiscalyearendedAugust31,2017.ForthefiscalyearsendedAugust31,2016and2015,weighted-averagestock-basedequityawardsoutstandingthatarenon-participatingsecuritiesintheamountsof4,501and1,337,respectively,wereexcludedfromthecalculationofdilutedEPSunderthetreasurystockmethodastheywereanti-dilutive.

Note 10. Related Parties

OnOctober 11, 2011, the Company’s Board of Directors elected Mr. Gregory A. Sandfort as a director of WD-40Company. Mr. Sandfort is theChief Executive Officer ofTractorSupplyCompany(“TractorSupply”),whichisaWD-40CompanycustomerthatacquiresproductsfromtheCompanyintheordinarycourseofbusiness.

TheconsolidatedfinancialstatementsincludesalestoTractorSupplyof$1.2millionforeachofthefiscalyears2017and2016,respectively,and$1.1millionforfiscalyear2015.AccountsreceivablefromTractorSupplywerenotsignificantasofAugust31,2017and2016.

Note 11. Commitments and Contingencies

Leases

The Company was committed under certain non-cancelable operating leases at August 31, 2017which provide for the following future fiscal year minimum payments (inthousands):

2018 2019 2020 2021 2022 ThereafterOperatingleases $ 1,856 $ 1,223 $ 893 $ 739 $ 479 $ 470

Rentexpensewas$2.1million,$1.9million,and$2.1millionforthefiscalyearsendedAugust31,2017,2016and2015,respectively.

PurchaseCommitments

TheCompanyhasongoingrelationshipswithvarioussuppliers(contractmanufacturers)whomanufacturetheCompany’sproducts.Thecontractmanufacturersmaintaintitleandcontrolofcertainrawmaterialsandcomponents,materialsutilizedinfinishedproducts,andofthefinishedproductsthemselvesuntilshipmenttotheCompany’scustomersorthird-partydistributioncentersinaccordancewithagreeduponshipmentterms.AlthoughtheCompanytypicallydoesnothavedefinitiveminimumpurchaseobligationsincludedinthecontracttermswithitscontractmanufacturers,whensuchobligationshavebeenincluded,theyhavebeenimmaterial.Intheordinarycourseofbusiness,supplyneedsarecommunicated by the Company to its contract manufacturers based on orders and short-term projections, ranging from two to five months. The Company is committed topurchasetheproductsproducedbythecontractmanufacturersbasedontheprojectionsprovided.

F-18

Upontheterminationofcontractswithcontractmanufacturers,theCompanyobtainscertaininventorycontrolrightsandisobligatedtoworkwiththecontractmanufacturertosellthroughallproductheldbyormanufacturedbythecontractmanufactureronbehalfoftheCompanyduringtheterminationnotificationperiod.Ifanyinventoryremainsatthecontract manufacturer at the termination date, the Companyis obligated to purchase such inventory which mayinclude rawmaterials, components and finishedgoods.Theamountsforinventorypurchasedunderterminationcommitmentshavebeenimmaterial.

Inadditiontothecommitmentstopurchaseproductsfromcontractmanufacturersdescribedabove,theCompanymayalsoenterintocommitmentswithothermanufacturerstopurchasefinishedgoodsandcomponentstosupportinnovationandrenovationinitiativesand/orsupplychaininitiatives.AsofAugust31,2017,nosuchcommitmentswereoutstanding.

Litigation

Fromtimetotime, theCompanyis subject tovariousclaims, lawsuits, investigationsandproceedingsarisingintheordinarycourseof business, includingbut not limitedto,productliabilitylitigationandotherclaimsandproceedingswithrespecttointellectualproperty,breachofcontract,laborandemployment,taxandothermatters.

On February 24, 2017, a legal action was filed against the Company in a United States District Court in Ohio (FirstPower Group, LLC v. WD-40 Company, WD-40ManufacturingCompany,Wal-MartStoresEast,LP,Lowe’sHomeCenters,LLC,andHomeDepotU.S.A.,Inc.).Thecomplaintallegedclaimsoftrademarkinfringement,unfaircompetition,counterfeiting,anddeceptivetradepracticesarisingoutoftheCompany’smarketingandsaleoftheWD‑40EZ-REACHFlexibleStrawproduct.FirstPowerGroup,LLC(“FirstPower”)claimedexclusiveownershipandtherighttousethewords“EZREACH”forlubricatingoilproductsbasedoncertainregisteredtrademarkscoveringsuchwords.OnFebruary24,2017,FirstPoweralsofiledamotionforpreliminaryinjunctionseekinganinterimorderprohibitingtheallegedinfringementofFirstPower’sassertedtrademarkrights.OnJuly18,2017theDistrictCourtissuedaMemorandumOpiniondenyingFirstPower’smotionforpreliminaryinjunction.OnOctober13,2017thecasewasdismissed as to all of the defendants pursuant to a confidential settlement agreement between the Company and FirstPower , which did not have a material impact on theCompany’sbusiness,financialconditionorresultsofoperations.

Indemnifications

AspermittedunderDelawarelaw,theCompanyhasagreementswherebyitindemnifiesseniorofficersanddirectorsforcertaineventsoroccurrenceswhiletheofficerordirectoris, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make under theseindemnificationagreementsisunlimited;however,theCompanymaintainsDirectorandOfficerinsurancecoveragethatmitigatestheCompany’sexposurewithrespecttosuchobligations. As a result of the Company’s insurance coverage, management believes that the estimated fair value of these indemnification agreements is minimal. Thus, noliabilitieshavebeenrecordedfortheseagreementsasofAugust31,2017.

Fromtimetotime,theCompanyentersintoindemnificationagreementswithcertaincontractual partiesintheordinarycourseofbusiness,includingagreementswithlenders,lessors, contract manufacturers, marketing distributors, customers and certain vendors. All such indemnification agreements are entered into in the context of the particularagreements and are provided in an attempt to properly allocate risk of loss in connection with the consummation of the underlying contractual arrangements. Although themaximumamountoffuturepaymentsthattheCompanycouldberequiredtomakeundertheseindemnificationagreementsisunlimited,managementbelievesthattheCompanymaintains adequate levels of insurance coverage to protect the Companywith respect to most potential claimsarising fromsuchagreements andthat suchagreements donototherwisehavevalueseparateandapartfromtheliabilitiesincurredintheordinarycourseoftheCompany’sbusiness.Thus,noliabilitieshavebeenrecordedwithrespecttosuchindemnificationagreementsasofAugust31,2017.

F-19

Note 12. Income Taxes

Incomebeforeincometaxesconsistedofthefollowing(inthousands):

Fiscal Year Ended August 31,2017 2016 2015

UnitedStates $ 42,060 $ 41,128 $ 38,044Foreign(1) 32,562 31,661 25,066Incomebeforeincometaxes $ 74,622 $ 72,789 $ 63,110

(1) IncludedintheseamountsareincomebeforeincometaxesfortheEMEAsegmentof$28.1million,$28.3millionand$21.9millionforthefiscalyearsendedAugust31,2017,2016and2015,respectively.

Theprovisionforincometaxesconsistedofthefollowing(inthousands):

Fiscal Year Ended August 31,2017 2016 2015

Current:Federal $ 10,813 $ 13,269 $ 12,302State 744 894 966Foreign 7,465 7,593 5,886

Totalcurrent 19,022 21,756 19,154

Deferred:UnitedStates 2,627 (1,100) (870)Foreign 43 (495) 19

Totaldeferred 2,670 (1,595) (851)Provisionforincometaxes $ 21,692 $ 20,161 $ 18,303

Deferredtaxassetsanddeferredtaxliabilitiesconsistedofthefollowing(inthousands):

August 31, August 31,2017 2016

Deferredtaxassets:Accruedpayrollandrelatedexpenses $ 1,252 $ 1,621Accountsreceivable 644 498Reservesandaccruals 2,393 2,292Unrealizedexchangeloss 25 992Stock-basedcompensationexpense 3,213 2,976Uniformcapitalization 1,598 1,473Taxcreditcarryforwards 2,309 2,038Other 1,264 2,043Totalgrossdeferredtaxassets 12,698 13,933Valuationallowance (2,328) (2,054)

Totalnetdeferredtaxassets 10,370 11,879

Deferredtaxliabilities:Propertyandequipment,net (2,109) (558)Amortizationoftaxgoodwillandintangibleassets (26,036) (26,321)Investmentsinpartnerships (679) (744)

Totaldeferredtaxliabilities (28,824) (27,623)Netdeferredtaxliabilities $ (18,454) $ (15,744)

F-20

TheCompanyhadstatenetoperatingloss(“NOL”)carryforwardsof$2.6millionand$2.4millionasofAugust31,2017and2016,respectively,whichgeneratedanetdeferredtaxassetof$0.2millionforeachofthefiscalyears2017and2016.ThestateNOLcarryforwards,ifunused,willexpirebetweenfiscalyear2018and2037.TheCompanyalsohadcumulativetaxcreditcarryforwardsof$2.3millionand$2.0millionasofAugust31,2017and2016,respectively,ofwhich$2.1millionand$1.9million,respectively,is attributable toa U.K.taxcredit carryforward, whichdoesnot expire. Futureutilizationof thetaxcredit carryforwards andcertain state NOLcarryovers is uncertain andisdependentuponseveralfactorsthatmaynotoccur,includingthegenerationoffuturetaxableincomeincertainjurisdictions.Atthistime,managementcannotconcludethatitis“more likely than not” that the related deferred tax assets will be realized. Accordingly, a full valuation allowance has been recorded against the related deferred tax assetassociatedwithcumulativetaxcreditcarryforwards.

AreconciliationofthestatutoryfederalincometaxratetotheCompany’seffectivetaxrateisasfollows(inthousands):

Fiscal Year Ended August 31,2017 2016 2015

AmountcomputedatU.S.statutoryfederaltaxrate $ 26,118 $ 25,476 $ 22,088Stateincometaxes,netoffederaltaxbenefits 327 397 578Effectofforeignoperations (4,277) (4,382) (3,221)Benefitfromqualifieddomesticproductiondeduction (1,295) (1,190) (1,131)Other 819 (140) (11)Provisionforincometaxes $ 21,692 $ 20,161 $ 18,303

Theprovisionforincometaxeswas29.1%and27.7%ofincomebeforeincometaxesforthefiscalyearsendedAugust31,2017and2016,respectively.Theincreaseintheeffectiveincometaxratefromperiodtoperiodwasprimarilydrivenbyanimmaterialout-of-periodcorrectionthattheCompanyrecordedinthesecondquarteroffiscalyear2017associatedwiththetaximpactsfromcertainunrealizedforeigncurrencyexchangelossesinperiodspriortofiscalyear2017.

AsofAugust31,2017,theCompanyhasnotprovidedforU.S.federalandstateincometaxesandforeignwithholdingtaxeson$137.5millionoftheundistributedearningsofcertainforeignsubsidiaries,mostlyattributabletotheU.K.,sincetheseearningsareconsideredindefinitelyreinvestedoutsideoftheUnitedStates.TheamountofunrecognizeddeferredU.S.federal andstate incometaxliability, net ofunrecognizedforeigntaxcredits, is estimatedtobeapproximately$12.9millionasofAugust 31, 2017.Thisnetliability is impactedbychangesinforeigncurrencyexchangeratesand, asaresult, will fluctuatewithanychangesinsuchrates. If managementdecidestorepatriate foreignearnings in future periods, the Company would be required to provide for the incremental U.S. federal and state income taxes as well as foreign withholding taxes on suchamountsintheperiodinwhichthedecisionismade.Inthefourthquarteroffiscalyear2016,theCompanyapprovedaone-timerepatriationof$8.2millionofhistoricalforeignearningsfromitsAustraliaandChinasubsidiariesduetofavorabletaxconsequencesstemmingprincipallyfromthestrengtheningoftheU.S.dollaragainstvariouscurrenciesinwhichtheCompanyconductsbusiness.Thisactionresultedintherecognitionofanincrementalimmaterialtaxbenefitinfiscalyear2016.TheCompanycontinuestoconsidertheremaining amount of unremitted foreign earnings in Australia and China, in addition to the U.K, to be indefinitely reinvested outside of the United States . TheCompanycontinuestoprovideforU.S.incometaxesandforeignwithholdingtaxesontheundistributedearningsofitsCanadaandMalaysiasubsidiaries,whoseearningsarenotconsideredindefinitelyreinvested.ReconciliationsofthebeginningandendingamountsoftheCompany’sgrossunrecognizedtaxbenefits,excludinginterestandpenalties,areasfollows(inthousands):

Fiscal Year Ended August 31,2017 2016

Unrecognizedtaxbenefits-beginningoffiscalyear $ 1,239 $ 1,279Netdecreases-priorperiodtaxpositions (68) -Netincreases-currentperiodtaxpositions 228 211Expirationsofstatuteoflimitationsforassessment (382) (251)Settlements (36) -

Unrecognizedtaxbenefits-endoffiscalyear $ 981 $ 1,239

Grossunrecognizedtaxbenefits totaled$1.0millionand$1.2millionas of August 31, 2017and2016,ofwhich$0.6millionand$0.9million,respectively,wouldaffecttheCompany’seffectiveincometaxrateifrecognized.TherewerenomaterialinterestorpenaltiesincludedinincometaxexpenseforthefiscalyearsendedAugust31,2017and2016.ThetotalbalanceofaccruedinterestandpenaltiesrelatedtouncertaintaxpositionswasalsoimmaterialatAugust31,2017and2016.

F-21

TheCompanyissubjecttotaxationintheU.S.andinvariousstateandforeignjurisdictions.Duetoexpiredstatutes,theCompany’sfederalincometaxreturnsforyearspriortofiscalyear2014arenotsubjecttoexaminationbytheU.S.InternalRevenueService.TheCompanywasnotifiedinSeptember2016bytheU.S.InternalRevenueServiceofitsplanstoperformanincometaxauditforthetaxperiodendedAugust31,2015.Theincometaxexaminationwasconcludedinthethirdquarteroffiscalyear2017withnochangestotheoriginal returnasfiled. TheCompanyis alsocurrentlyunderaudit invariousstateandinternational jurisdictionsforfiscal years 2013through2016.Generally,forthemajorityofstateandforeignjurisdictionswheretheCompanydoesbusiness,periodspriortofiscalyear2013arenolongersubjecttoexamination.TheCompanyhasestimatedthatupto$0.4millionofunrecognizedtaxbenefitsrelatedtoincometaxpositionsmaybeaffectedbytheresolutionoftaxexaminationsorexpiringstatutesoflimitationwithinthenexttwelvemonths.Auditoutcomesandthetimingofsettlementsaresubjecttosignificantuncertainty.

Note 13. Stock-based Compensation

Asof August 31, 2017, the Company had one stock incentive plan, the WD-40 Company 2016 Stock Incentive Plan (“2016 Plan”),whichwas approved by the Company’sshareholderseffectiveasofDecember13,2016.The2016Planpermitsthegrantingofvariousstock-basedequityawards,includingnon-qualifiedstockoptions,incentivestockoptions, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other stock-based awards to employees, directors andconsultants.TodatethroughAugust31,2017,theCompanyhadgrantedawardsofrestrictedstockunits(“RSUs”)underthe2016Plan.Additionally,asofAugust31,2017,therewerestill outstandingstockoptions , RSUs,market shareunits (“MSUs”)anddeferredperformanceunits (“DPUs”)whichhadbeengrantedundertheCompany’s priorequityincentiveplans.The2016PlanisadministeredbytheBoardofDirectors(the“Board”)ortheCompensationCommitteeorotherdesignatedcommitteeoftheBoard(the“Committee”).Allstock-basedequityawardsgrantedunderthe2016PlanaresubjecttothespecifictermsandconditionsasdeterminedbytheCommitteeatthetimeofgrantofsuchawardsinaccordancewiththevarioustermsandconditionsspecifiedforeachawardtypeperthe2016Plan.Thetotalnumberofsharesofcommonstockauthorizedforissuancepursuanttograntsofawardsunderthe2016Planis1,000,000.AsofAugust31,2017,979,546sharesofcommonstockremainedavailableforfutureissuancepursuanttograntsofawardsunderthe2016Plan.Thesharesofcommonstocktobeissuedpursuanttoawardsunderthe2016Planmaybeauthorizedbutunissuedsharesortreasuryshares.TheCompanyhashistoricallyissuednewauthorizedbutunissuedsharesuponthesettlementofthevariousstock-basedequityawardsunderitsequityincentiveplans.

Vesting of the RSUsgranted to directors is immediate, with shares to be issued pursuant to the vested RSUsupon termination of each director’s service as a director of theCompany. Vesting of the one-time grant of RSUsgranted to certain key executives of the Companyin March 2008in settlement of these key executives’ benefits under theCompany’ssupplementalemployeeretirementplanagreementswasoveraperiodofthreeyearsfromthedateofgrant,withsharestobeissuedpursuanttothevestedRSUssixmonthsfollowingthedayafter eachexecutiveofficer’s terminationofemploymentwiththeCompany.VestingoftheRSUsgrantedtocertainhighlevel employeesisoveraperiodofthreeyearsfromthedateofgrant,subjecttopotentialearliervestingintheeventofretirementoftheholderoftheawardinaccordancewiththeawardagreement,withsharestobeissuedpursuanttothevestedRSUsatthetimeofvest.ThedirectorRSUholdersandtheexecutiveofficerMarch2008grantdateRSUholdersareentitledtoreceivedividendequivalentswithrespecttotheirRSUs,payableincashasandwhendividendsaredeclaredbytheCompany’sBoardofDirectors.

VestingoftheMSUsgrantedtocertainhighlevel employeesfollowsaperformancemeasurement periodof threefiscal yearscommencingwiththeCompany’sfiscal yearinwhichtheMSUawardsaregranted(the“MeasurementPeriod”).ShareswillbeissuedpursuanttothevestedMSUsfollowingtheconclusionoftheapplicableMSUMeasurementPeriod after the Committee’s certification of achievement of the applicable performance measure for such awards and the vesting of the MSU awards and the applicablepercentageofthetargetnumberofMSUsharestobeissued.TherecipientmustremainemployedwiththeCompanyforvestingpurposesuntilthedateonwhichtheCommitteecertifiesachievementoftheapplicableperformancemeasurefortheMSUawards,subjecttopotentialpro-ratavestingintheeventofearlierretirementoftheholderoftheawardinaccordancewiththeawardagreement.

VestingoftheDPUsgrantedtocertainhighlevelemployeesfollowsaperformancemeasurementperiodofonefiscalyearthatisthesamefiscalyearinwhichtheDPUawardsaregranted(the“MeasurementYear”).AnumberofDPUsequaltotheapplicablepercentageofthemaximumnumberofDPUsawardedwillbeconfirmedasvestedfollowingtheconclusionoftheapplicableDPUMeasurementYearaftertheCommittee’scertificationofachievementoftheapplicableperformancemeasureforsuchawards(the“VestedDPUs”).TherecipientmustremainemployedwiththeCompanyforvestingpurposesuntilAugust31oftheMeasurementYear,subjecttopotentialpro-ratavestingintheeventofearlierretirementoftheholderoftheawardinaccordancewiththeawardagreement.ForrecipientswhoareresidentsoftheUnitedStates,theVestedDPUsmustbehelduntilterminationofemployment,withsharestobeissuedpursuanttotheVestedDPUssixmonthsfollowingthedayaftereachsuchrecipient’sterminationofemploymentwiththeCompany.ForrecipientswhoarenotresidentsoftheUnitedStates,theCommitteehasdiscretiontoeitherdefersettlementofeachsuchrecipient’sVestedDPUsbyissuanceofsharesfollowingterminationofemploymentorsettleeachVestedDPUincashbypaymentofanamountequaltotheclosingpriceofoneshare

F-22

oftheCompany’scommonstockasofthedateoftheCommittee’scertificationoftherelativeachievementoftheapplicableperformancemeasurefortheDPUawards.UntilissuanceofsharesinsettlementoftheVestedDPUs,theholdersofeachVestedDPUthatisnotsettledincashareentitledtoreceivedividendequivalentswithrespecttotheirVestedDPUs,payableincashasandwhendividendsaredeclaredbytheCompany’sBoardofDirectors.

Stock-basedcompensationexpenseisamortizedonastraight-linebasisovertherequisiteserviceperiodfortheentireaward.Stock-basedcompensationexpenserelatedtotheCompany’sstock-basedequityawardstotaled$4.1million,$3.7millionand$2.8millionforthefiscal yearsendedAugust 31,2017,2016and2015,respectively.TheCompanyrecognizedincometaxbenefitsrelatedtosuchstock-basedcompensationof$1.4million,$1.2millionand$0.9millionforthefiscalyearsendedAugust31,2017,2016and2015,respectively.AsofAugust31,2017,thetotalunamortizedcompensationcostrelatedtonon-vestedstock-basedequityawardswas$0.8millionand$1.6millionforRSUsandMSUs,respectively,whichtheCompanyexpectstorecognizeoverremainingweighted-averagevestingperiodsof1.5and1.7yearsforRSUsandMSUs,respectively.NounamortizedcompensationcostforDPUsremainedasofAugust31,2017.

Stock Options

Fiscalyear2008wasthelastfiscalperiodinwhichtheCompanygrantedstockoptions.TheestimatedfairvalueofeachoftheCompany’sstockoptionawardsgrantedinandpriortofiscalyear2008wasdeterminedonthedateofgrantusingtheBlack-Scholesoptionpricingmodel.

AsummaryoftheCompany’sstockoptionawardactivityisasfollows(inthousands,exceptshareandpershareamountsandcontractualterminyearsdata):

Weighted-AverageRemaining

Weighted-Average Contractual TermNumber of Exercise Price Per Share Aggregate

Stock Options Shares Per Share (in years) Intrinsic ValueOutstandingatAugust31,2016 27,820 $ 35.59

Granted - $ -Exercised (21,860) $ 35.47Forfeitedorexpired - $ -

OutstandingatAugust31,2017 5,960 $ 36.03 0.1 $ 435ExercisableatAugust31,2017 5,960 $ 36.03 0.1 $ 435

Thetotalintrinsicvalueofstockoptionsexercisedwas$1.6million,$2.5millionand$3.3millionforthefiscalyearsendedAugust31,2017,2016and2015,respectively.

The income tax benefits from stock options exercised totaled$0.4million,$0.7million and$1.1million for the fiscal years ended August 31, 201 7, 2016and 2015,respectively.

Restricted Stock Units

TheestimatedfairvalueofeachoftheCompany’sRSUawardswasdeterminedonthedateofgrantbasedontheclosingmarketpriceoftheCompany’scommonstockonthedateofgrantforthoseRSUswhichareentitledtoreceivedividendequivalentswithrespecttotheRSUs,orbasedontheclosingmarketpriceoftheCompany’scommonstockonthedate of grant less thegrant date present valueof expecteddividendsduringthevestingperiodfor thoseRSUswhichare not entitled to receive dividendequivalents withrespecttotheRSUs.

F-23

AsummaryoftheCompany’srestrictedstockunitactivityisasfollows(inthousands,exceptshareandpershareamounts):

Weighted-Average Grant Date Number of Fair Value Aggregate

Restricted Stock Units Shares Per Share Intrinsic ValueOutstandingatAugust31,2016 130,035 $ 54.80

Granted 21,501 $ 109.23Convertedtocommonshares (34,479) $ 58.71Forfeited (287) $ 81.44

OutstandingatAugust31,2017 116,770 $ 63.61 $ 12,722VestedatAugust31,2017 87,258 $ 52.78 $ 9,507

Theweighted-averagegrantdatefairvalueofallRSUsgrantedduringthefiscalyearsendedAugust31,2017,2016and2015was$109.23,$95.89and$69.35,respectively.ThetotalintrinsicvalueofallRSUsconvertedtocommonshareswas$3.6million,$2.8millionand$1.8millionforthefiscalyearsendedAugust31,2017,2016and2015,respectively.

TheincometaxbenefitsfromRSUsconvertedtocommonsharestotaled$1.3million,$1.0millionand$0.6millionforthefiscalyearsendedAugust31,2017,2016and2015,respectively.

Market Share Units

TheMSUsaremarketperformance-basedawardsthatshallvestwithrespecttotheapplicablepercentageofthetargetnumberofMSUsharesbasedonrelativetotalstockholderreturn(“TSR”)fortheCompanyascomparedtothetotalreturnfortheRussell2000Index(“Index”)overtheperformanceMeasurementPeriod.TheultimatenumberofMSUsthat vest may range from 0% to 200% of the original target number of shares depending on the relative achievement of the TSR performance measure at the end of theMeasurement Period. The probabilities of the actual number of MSUs expected to vest and resultant actual number of shares of common stock expected to be awarded arereflectedinthegrantdatefair valuesofthevariousMSUawards; therefore, thecompensationexpensefortheMSUawardswill berecognizedassumingtherequisite serviceperiodisrenderedandwillnotbeadjustedbasedontheactualnumberofsuchMSUawardstoultimatelyvest.

TheestimatedfairvalueofeachoftheCompany’sMSUawards,whicharenotentitledtoreceivedividendequivalentswithrespecttotheMSUs,wasdeterminedonthedateofgrantusingtheMonteCarlosimulationmodel,whichutilizesmultipleinputvariablestosimulatearangeofpossiblefuturestockpricesforboththeCompanyandtheIndexandestimatestheprobabilitiesofthepotentialpayouts.ThedeterminationoftheestimatedgrantdatefairvalueoftheMSUsisaffectedbytheCompany’sstockpriceandanumberofassumptions includingthe expectedvolatilities of theCompany’s stockandthe Index, the Company’s risk-free interest rate andexpecteddividends.Thefollowingweighted-averageassumptionsforMSUgrantsforthelastthreefiscalyearswereusedintheMonteCarlosimulationmodel:

Fiscal Year Ended August 31,2017 2016 2015

Expectedvolatility 21.1% 22.2% 22.0%Risk-freeinterestrate 1.0% 0.9% 0.8%Expecteddividendyield 0.0% 0.0% 0.0%

TheexpectedvolatilityutilizedwasbasedonthehistoricalvolatilitiesoftheCompany’scommonstockandtheIndexinordertomodelthestockpricemovements.Thevolatilityusedwascalculatedoverthemostrecent2.89-yearperiodsforMSUsgrantedduringeachofthefiscalyearsendedAugust31,2017and2016,andoverthemostrecent2.88-yearperiodforMSUsgrantedduringthefiscalyearendedAugust31,2015,whichweretheremainingtermsoftheperformanceMeasurementPeriodatthedatesofgrant.Therisk-free interest rates used were based on the implied yield available on a U.S. Treasury zero-coupon bill with a remaining term equivalent to the remaining performanceMeasurementPeriod.TheMSUawardsstipulatethat,forpurposesofcomputingtherelativeTSRfortheCompanyascomparedtothereturnfortheIndex,dividendspaidwithrespecttoboththeCompany’sstockandtheIndexaretobetreatedasbeingreinvestedintothestockofeachentityasoftheex-dividenddate.Accordingly,anexpecteddividendyield of zero was used in the Monte Carlo simulation model, which is the mathematical equivalent to reinvesting dividends in the issuing entity over the performanceMeasurementPeriod.

F-24

AsummaryoftheCompany’smarketshareunitactivityisasfollows(inthousands,exceptshareandpershareamounts):

Weighted-Average Grant Date Number of Fair Value Aggregate

Market Share Units Shares Per Share Intrinsic ValueOutstandingatAugust31,2016 45,700 $ 87.82

Granted 14,683 $ 90.91Performancefactoradjustments 10,974 $ 73.44Convertedtocommonshares (25,825) $ 71.20Forfeited (613) $ 82.51

OutstandingatAugust31,2017(1) 44,919 $ 94.95 $ 4,894

(1) ThisfigurerepresentsthetotalnumberofsharesunderlyingMSUgrantsassumingachievementofthetargetnumberofsharesat100%.Astheultimatenumberofsharesthatvestcouldbeashighas200%ofthetarget,theCompanymayberequiredtoissueadditionalsharestosatisfyoutstandingMSUawardgrants.

Theweighted-averagegrantdatefairvalueofallMSUsgrantedduringthefiscalyearsendedAugust31,2017,2016and2015was$90.91,$120.99and$71.66respectively.ThetotalintrinsicvalueofallMSUsconvertedtocommonshareswas$2.8millionand$3.7millionforthefiscalyearsendedAugust31,2017and2016,respectively.NoMSUswereconvertedtocommonsharesduringthefiscalyearendedAugust31,2015.

TheincometaxbenefitsfromMSUsconvertedtocommonsharestotaled$0.9millionand$1.2millionforthefiscalyearsendedAugust31,2017and2016,respectively.

Deferred Performance Units

The DPUawards provide for performance-based vesting over a performance measurement period of the fiscal year in which the DPUawards are granted.TheperformancevestingprovisionsoftheDPUsarebasedonrelativeachievementwithinanestablishedperformancemeasurerangeoftheCompany’sreportedearningsbeforeinterest,incometaxes,depreciationinoperatingdepartments,andamortizationcomputedonaconsolidatedbasisfortheMeasurementYear,beforedeductionofthestock-basedcompensationexpensefortheVestedDPUsandexcludingothernon-operatingincomeandexpenseamounts(“AdjustedGlobalEBITDA”).TheultimatenumberofDPUsthatvestmayrangefrom0%to100%oftheoriginalmaximumnumberofDPUsawardeddependingontherelativeachievementoftheAdjustedGlobalEBITDAperformancemeasureattheendoftheMeasurementYear.

TheestimatedfairvalueofeachoftheCompany’sDPUawardswasdeterminedonthedateofgrantbasedontheclosingmarketpriceoftheCompany’scommonstockonthedateofgrantlessthegrantdatepresentvalueofexpecteddividendsduringthevestingperiodfortheDPUs,whicharenotentitledtoreceivedividendequivalentswithrespecttotheunvestedDPUs.

AsummaryoftheCompany’sdeferredperformanceunitactivityisasfollows(inthousands,exceptshareandpershareamounts):

Weighted-Average Grant Date Number of Fair Value Aggregate

Deferred Performance Units Shares Per Share Intrinsic ValueOutstandingatAugust31,2016 26,323 $ 94.54

Granted 25,882 $ 110.19Performancefactoradjustments (21,240) $ 94.54Convertedtocommonshares (89) $ 94.54Forfeited - $ -

OutstandingatAugust31,2017 30,876 $ 107.66 $ 3,364VestedatAugust31,2017 4,994 $ 94.54 $ 544

F-25

Theweighted-averagegrantdatefairvalueofallDPUsgrantedduringthefiscalyearsendedAugust31,2017,2016and2015was$110.19,$94.54and$75.14,respectively.Thetotal intrinsicvalueofall DPUsconvertedtocommonshareswasnotsignificant forthefiscal yearendedAugust31, 2017.NoDPUswereconvertedtocommonsharesduringthefiscalyearsendedAugust31,2016,or2015.

TheincometaxbenefitsfromDPUsconvertedtocommonshareswerenotsignificantforthefiscalyearendedAugust31,2017.

Note 14. Other Benefit PlansThe Company has a WD-40 Company Profit Sharing/401(k) Plan and Trust (the “Profit Sharing/401(k) Plan”) whereby regular U.S. employees who have completed certainminimumservicerequirementscandeferaportionoftheirincomethroughcontributionstoatrust.TheProfitSharing/401(k)PlanprovidesforCompanycontributionstothetrust,asapprovedbytheBoardofDirectors,asfollows:1)matchingcontributionstoeachparticipantupto50%ofthefirst6.6%ofcompensationcontributedbytheparticipant;2)fixednon-electivecontributionsintheamountequalto10%ofeligiblecompensation;and3)adiscretionarynon-electivecontributioninanamounttobedeterminedbytheBoardofDirectorsupto5%ofeligiblecompensation.TheCompany’scontributionsaresubjecttooverallemployercontributionlimitsandmaynotexceedtheamountdeductibleforincome tax purposes. The Profit Sharing/401(k) Plan may be amended or discontinued at any time by the Company. The Company’s contribution expense for the ProfitSharing/401(k)Planwas$3.3million,$3.2millionand$3.1millionforthefiscalyearsendedAugust31,2017,2016and2015,respectively.

The Company’s international subsidiaries have similar benefit plan arrangements, dependent upon the local applicable laws and regulations. The plans provide for Companycontributionstoanappropriatethird-partyplan,asapprovedbythesubsidiary’sBoardofDirectors.TheCompany’scontributionexpenserelatedtotheinternationalplanswas$1.4million,$1.5millionand$1.4millionforthefiscalyearsendedAugust31,2017,2016and2015,respectively.

F-26

Note 15. Business Segments and Foreign Operations

The Company evaluates the performance of its segments and allocates resources to them based on sales and operating income. The Company is organized on the basis ofgeographical area into the following threesegments: the Americas; EMEA; and Asia-Pacific. Segment data does not include inter-segment revenues. Unallocated corporateexpenses are general corporate overhead expenses not directly attributable to the operating segments and are reported separate fromthe Company’s identified segments. ThecorporateoverheadcostsincludeexpensesfortheCompany’saccountingandfinance,informationtechnology,humanresources,researchanddevelopment,qualitycontrolandexecutivemanagementfunctions,aswellasalldirectcostsassociatedwithpubliccompanycompliancemattersincludinglegal,auditandotherprofessionalservicescosts.

UnallocatedAmericas EMEA Asia-Pacific Corporate (1) Total

Fiscal Year Ended August 31, 2017Netsales $ 184,929 $ 136,771 $ 58,806 $ - $ 380,506Incomefromoperations $ 48,303 $ 35,389 $ 16,765 $ (24,548) $ 75,909Depreciationandamortizationexpense $ 4,270 $ 2,090 $ 254 $ 155 $ 6,769

Interestincome $ 8 $ 389 $ 111 $ - $ 508Interestexpense $ 2,570 $ - $ 12 $ - $ 2,582

Fiscal Year Ended August 31, 2016Netsales $ 191,397 $ 135,235 $ 54,038 $ - $ 380,670Incomefromoperations $ 48,404 $ 31,702 $ 15,162 $ (23,920) $ 71,348Depreciationandamortizationexpense $ 4,071 $ 2,084 $ 280 $ 30 $ 6,465

Interestincome $ 5 $ 485 $ 193 $ - $ 683Interestexpense $ 1,689 $ - $ 14 $ - $ 1,703

Fiscal Year Ended August 31, 2015Netsales $ 187,344 $ 136,847 $ 53,959 $ - $ 378,150Incomefromoperations $ 46,674 $ 30,173 $ 12,602 $ (24,059) $ 65,390Depreciationandamortizationexpense $ 4,078 $ 2,102 $ 253 $ 31 $ 6,464

Interestincome $ 9 $ 417 $ 158 $ - $ 584Interestexpense $ 1,197 $ - $ 8 $ - $ 1,205

(1) Unallocated corporate expenses are general corporate overhead expenses not directly attributable to any one of the operating segments. These expenses are reported separate fromthe Company’sidentifiedsegmentsandareincludedinSelling,GeneralandAdministrativeexpensesontheCompany’sconsolidatedstatementsofoperations.

TheCompany’sChiefOperatingDecisionMakerdoesnotreviewassetsbysegmentaspartofthefinancialinformationprovidedandtherefore,noassetinformationisprovidedintheabovetable.

Netsalesbyproductgroupareasfollows(inthousands):

Fiscal Year Ended August 31,2017 2016 2015

Maintenanceproducts $ 342,295 $ 339,974 $ 333,306Homecareandcleaningproducts 38,211 40,696 44,844

Total $ 380,506 $ 380,670 $ 378,150

F-27

Netsalesandlong-livedassetsbygeographicareaareasfollows(inthousands):

Fiscal Year Ended August 31,2017 2016 2015

Net Sales by Geography:UnitedStates $ 150,086 $ 158,139 $ 153,116International 230,420 222,531 225,034

Total $ 380,506 $ 380,670 $ 378,150

Long-lived Assets by Geography (2) :UnitedStates $ 23,346 $ 6,419 $ 5,955International 6,093 5,126 5,421

Total $ 29,439 $ 11,545 $ 11,376

(2)Includestangibleassetsandpropertyandequipment,net,attributedtothegeographiclocationinwhichsuchassetsarelocated.

Note 16. Subsequent Events

OnOctober10,2017,theCompany’sBoardofDirectorsdeclaredacashdividendof$0.49persharepayableonOctober31,2017toshareholdersofrecordonOctober20,2017.

F-28

Exhibit 10(d )WD-40 Directors’ Compensation Policy a nd Election Plan

October 9 , 2017

TheWD-40CorporateGovernanceCommitteehasproposed,andtheBoardofDirectorshasadopted,thefollowingCompensationPolicyandElectionPlanfordirectors(the“ElectionPlan”),effectiveasofOctober9,2017.

RESTRICTED STOCK UNITS

Eachnewnon-employeedirectorjoiningtheBoardaftertheadoptionofthisElectionPlanwillreceiverestrictedstockunits(“RSUs”)withafairmarketvalueonthedateofgrantof$70,000assoonaspracticableuponjoiningtheBoard.RSUsshallbegrantedbyaffirmativeactionofthefullBoardundertheWD-40Company2016StockIncentivePlan(the“IncentivePlan”).VestingwillbeimmediateandtheunitswillbesettledinCompanystockuponterminationofthedirector’sserviceontheBoardforanyreason,includingupondeath,resignation,retirementorremovalfromoffice(“Termination”.)TheRSUswillcarrydividendequivalentspayableincashasandwhendeclaredontheCompany’sstockinaccordancewiththeIncentivePlan.TheAwardAgreementsissuedwithrespecttotheRSUsshallnotpermitthedirectortoaccelerateorotherwiseobtainbenefits(otherthanthedividendequivalentpayments)withrespecttotheRSUsuntilTermination.AllRSUsawardedpursuanttothisElectionPlanshallbesubjecttoAwardAgreementshavingthesametermsandconditionsforvesting,timeofpayment,dividendequivalentsandaccelerationprohibitionasprovidedforhereinaboveandallreferencestoRSUsinthisElectionPlanshallrefertoRSUssubjecttosuchAwardAgreements.

Eachcontinuingnon-employeedirectorwillreceiveannuallyanawardofRSUswithafairmarketvalueof$70,000onthedateofgrant.TheRSUswillbegrantedbyaffirmativeactionofthefullBoardundertheIncentivePlanattheorganizationalmeetingoftheBoardimmediatelyfollowingtheannualmeetingofstockholdersinDecemberofeachyear.

TheawardofRSUstodirectorsattheDecembermeetingshallrepresent,inpart,thefullmeasureofcompensationearnedbyeachdirectorforservicesrenderedinthemonthofDecemberfromandaftersuchmeeting.

ELECTION PLAN FOR PAYMENT OF ANNUAL BASE COMPENSATION IN CASH AND /OR BY AWARD OF RESTRICTED STOCK UNITS

AnnualbasecompensationfordirectorsforservicesrenderedduringthecalendaryearbeginningonJanuary1stfollowingtheCompany’sannualmeetingofstockholdersthroughthedateofthenextannualmeetingshallbe$45,000.Suchamountdoesnotincludeboardcommitteefees,directorcontributionfunddonationorreimbursementfortravelexpenses.Noseparatecompensationshallbepayableforspecialmeetingsofthedirectors.

CompensationforDirectorstobeElectedattheAnnualMeeting

Annualbasecompensationforeachnon-employeedirectorwillbepaidinacombinationofcashand/orRSUs.Eachdirectormayelecttoreceivealloraportionoftheannualbasecompensationincashinincrementsof$1,000andshallmakethiselectionbythedateoftheannualmeeting.Thecashcompensationtobepaid,ifany,shallbepaidonMarch1ofthefollowingyear.RSUshavingafairmarketvalueasofthedateofgrantequaltotheamountofannualbasecompensationnotelectedtobereceivedincashwillbegrantedbyaffirmativeactionofthefullBoardundertheIncentivePlanimmediatelyfollowingtheannualshareholdersmeetinginDecember,atwhichtime,thedirector’selectionshallbecomeirrevocable.

CompensationforDirectorsAppointedDuringYear

DirectorsappointedduringtheyeartofillavacancyontheBoardwillreceiveannualbasecompensationaccordingtothefollowingschedule:

Appointmentatorpriortothesecondquartermeeting: $45,000Appointmentatorpriortothethirdquartermeeting: $34,000Appointmentatorpriortothefourthquartermeeting: $22,500

PaymentofsuchcompensationshallbemadeonoraboutthefirstdayofthesecondmonthfollowingappointmenttotheBoard.Priortotheeffectivedateofthenewdirector’selectiontotheBoard,thedirectormayelecttoreceiveallorpartofsuchcompensationincashinincrementsof$1,000andRSUsshallbeawardedinthemannerprovidedforelectionswithrespecttothereceiptofannualbasecompensationassetforthabove.TheRSUsaretobegrantedbythefullBoardundertheIncentivePlanatthenextmeetingoftheBoardfollowingreceiptofthedirector’selectioninthesamemannerinwhichRSUsareawardedtodirectorspursuanttotheirannualcompensationelections.Thenewdirector’selectionshallbeirrevocableupontheeffectivedateofhisorherserviceasadirector.

CompensationforDirectorsLeavingDuringYear

IfdeemedpracticalbytheCorporateGovernanceCommittee,adepartingdirectorwillbepaidforthepro-rataportionoftimeactuallyservedandmayberequiredtoreturnaprorataportionofcompensationreceivedortoforfeitaprorataportionofRSUsawardedpursuanttotheforegoingelectionprovisions,assuchrequiredreturnofcompensationorforfeituremaybedeterminedbytheCorporateGovernanceCommitteeinitsreasonablediscretion.

IRC SECTION 409A PLAN

TheforegoingprovisionsrelatingtothegrantofRSUsundertheIncentivePlanandadirector’selectiontoreceiveallorpartoftheannualbasecompensationincashareintendedtoconstituteabindingplanforpurposesofSection409AoftheInternalRevenueCode.

BOARD CHAIRMAN COMPENSATION

TheChairmanoftheBoardwillreceive$22,000asadditionalcashcompensationannually.Thisamountwillbepro-ratedforpartialyearserviceasChairman.

COMMITTEE COMPENSATION

AnnualCommitteeservicefeesareasstatedbelow:

AuditCommittee$8,000permemberChairman$16,000

CompensationCommittee$4,000permemberChairman$10,000

CorporateGovernanceCommittee$4,000permemberChairman$8,000FinanceCommittee$4,000permemberChairman$8,000

PaymentofannualcommitteeservicefeesshallbemadeinlumpsumonoraboutMarch1ofeachyearcoveringcommitteeservicesprovidedfromthebeginningofthecalendaryearfollowingeachannualmeetingtothenextannualmeeting.Amountswillbepro-ratedforpartialyearservice.

ADDITIONAL BENEFITS

CharitableDonations

Eachdirectorisallowedtodesignate$6,000annuallyfromWD-40CompanyDirectorContributionsFundtoaqualified(501(c)(3))charitableorganization.Newlyelecteddirectorswillbeeligibletomakecharitablefundingdesignationsfor

thefiscalyearfollowingthefiscalyearinwhichtheyareelected.Anycontinuingdirectorwhoservesanypartofafiscalyearshallbeentitledtodesignate$6,000forthatyear.

ContinuingEducation

Eachdirectorwillbereimburseduptoatotalof$3,000peryearforeducationexpenses,includingappropriatetravelcosts.Therewillbeno“carry-forward”iftheamountisnotutilizedduringtheyear.Reimbursementshallbeuptoatotalof$10,000inanyyearifadirectorengagesininternationaltraveltovisitcompanyworksitesortravelwithcompanypersonnel.DirectorsareencouragedtosharetheirlearningfromeducationalprogramswiththeBoard.

AdoptedbytheBoardofDirectors,October9,2017

/s/RICHARDT.CLAMPITTRichardT.ClampittWD-40CompanyCorporateSecretary

Exhibit 10(g )WD-40 COMPANY

200 7 STOCK INCENTIVE PLAN

FY 2017 RESTRICTED STOCK UNIT AWARD GRANT NOTICE AND ACCEPTANCE

Number of RSU Shares: The Total “Vest Quantity” Shown AbovePeriod of Restriction: Three Year VestingVesting Dates: For Each “Vest Quantity”, Not Later Than the “Vest Dates” Shown Above

FY 2017 RESTRICTED STOCK UNIT AWARD AGREEMENT

Pursuant to your RSU Award Grant Notice and Acceptance (“Grant Notice”) and this Restricted Stock Unit Award Agreement(“Agreement”),WD-40Company,aDelawarecorporation,(the“Company”)hasawardedtoyouRestrictedStockUnits(“RSUs”)undertheWD-40Company2007StockIncentivePlan(the“Plan”)withrespecttothenumberofsharesoftheCompany’sCommonStockindicatedinyourGrantNotice.DefinedtermsnotexplicitlydefinedinthisAgreementbutdefinedinthePlanshallhavethesamedefinitionsasinthePlan.

ThedetailsofyourRSUsareasfollows:

1. Number of Shares. ThenumberofSharestobeissuedtoyouuponpaymentofyourRSUs(your“RSUShares”)asreferencedinyourGrantNoticemaybeadjustedfromtimetotimeuponchangesincapitalizationoftheCompanypursuanttoSection18ofthePlan.

2. No Payment of Dividend Equivalents. DividendEquivalentsarenotpayablewithrespecttoyourRSUs.UponissuanceofyourRSUSharesatthetimeofvestingorotherwiseasprovidedforherein,youwillthenbeentitledtoreceivedividendsasandwhendeclaredupontheSharesbytheCompany.

3. Vesting. YourRSUsvestoveraperiodofthreeyearsfromtheDateofGrant.ThenumberofRSUsvestingoneachvestingdateissetforthonyourGrantNotice.Thevestingdateforeachfiscalyear(the“vestingyear”)willbetheearlierofthedatethatisthe3rdbusinessdayfollowingtheCompany’spublicreleaseofitsannualearningsfortheimmediatelyprecedingfiscalyearorNovember15ofthevestingyearasspecifiedinyourGrantNotice.Exceptasotherwiseprovidedforherein,RSUsthatarenotvestedasoftheeffectivedateoftheterminationofyouremploymentwiththeCompanyoraSubsidiaryforanyreason,includingdeath,resignationorterminationbytheCompanyorSubsidiary(“TerminationofEmployment”),shallbeforfeited.

4. Payment in Shares upon Vesting . YourvestedRSUsshallbepayablesolelyinanequivalentnumberofSharesimmediatelyasofthevestingdateassetforthinParagraph3above.SubjecttotheprovisionsofParagraphs8and11ofthisAgreement,theRSUSharesshallbeissuedanddeliveredtoyouortoyourdesignatedBeneficiary(ashereinafterdefined)onthevestingdate.IssuanceoftheRSUSharesmaynotbeaccelerated,deferredorotherwiseclaimedbyyouforanyreasonoratanytimeotherthanuponvestingorotherwiseasprovidedforherein.

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5. Retirement Vesting. NotwithstandingtheprovisionsofParagraph3aboveandexceptasprovidedinParagraph7below,allofyourRSUsshallbeimmediatelyvestedand,subjecttotheprovisionsofParagraphs8and11ofthisAgreement,theRSUSharesshallbeissuedtoyouasofadatethatisthirty(30)daysfollowingtheeffectivedateofyourRetirement(ashereinafterdefined).“Retirement”,forpurposesofthisAgreement,meansTerminationofEmployment(foranyreasonotherthanterminationbytheCompanyoraSubsidiaryforCause):(i)afterattainment of age sixty-five (65) ,or(ii)after attainment of age fifty-five (55 )providedthatyou have been in ContinuousServicewiththeCompanyoraSubsidiaryfornotlessthanten(10)years.

6. Change of Control Vesting. The provisions of Section 19 of the Plan shall apply in the event of a Change of Control of theCompany.VestingofyourRSUsuponTerminationofEmploymentfor“goodreason”followingaChangeofControlshallalsobeprovidedforifspecificallyprovidedforinawrittenemploymentorseveranceagreementbetweenyouandtheCompany.IntheeventyourRSUsarevestedpursuanttoSection19ofthePlan,subjecttotheprovisionsofParagraphs7,8and11ofthisAgreement,theRSUSharesshallbeissuedtoyouas of a date that is thirty (30) days following the effective date of the Change of Control of the Company or the effective date of yourTerminationofEmploymentwithoutCause,asthecasemaybe.

7. Six Month Delay in Issuance of Shares on Termination of Employment for Certain Officers. If,atthetimeofyourRetirementorotherTerminationofEmployment,youarea“specifiedemployee”asthattermisdefinedinSection409AoftheInternalRevenueCodeof1986,asamended,subjecttotheprovisionsofParagraphs8and11ofthisAgreement,theRSUSharestobeissuedtoyouasprovidedforinParagraphs5or6aboveshallbeissuedanddeliveredtoyouortoyourdesignatedBeneficiary(ashereinafterdefined)six(6)monthsfollowingthedayaftertheeffectivedateofyourTerminationofEmployment.

8. Securities Law Compliance. Notwithstandinganythingtothecontrarycontainedherein,yourRSUSharesmaynotbeissuedunlessthe RSUShares are then registered under the Securities Actof 1933, as amended (the “Securities Act”)or, if suchShares are not then soregistered,theCommitteeortheBoardhasdeterminedthatsuchissuancewouldbeexemptfromtheregistrationrequirementsoftheSecuritiesAct. The issuance of your RSU Sharesmust also comply with other applicable laws and regulations governing yourRSU Shares , and theissuanceofyourRSUSharesmaybedelayediftheCommitteeortheBoarddeterminesthatsuchissuancewouldnotbeinmaterialcompliancewithsuchlawsandregulations.

9. Transferability. YourRSUsarenottransferable,exceptbywillorbythelawsofdescentanddistribution.Notwithstandingtheforegoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party (your“Beneficiary”)who,intheeventofyourdeath,shallthenbeentitledtoreceivetheRSUSharespayableasofthedateofyourdeath.

10. Agreement Not a Service Contract or Obligation to Continue Service . This Agreement is not an employment or servicecontract,andnothinginthisAgreementshallbedeemedtocreateinanywaywhatsoeveranyobligationonyourparttocontinueintheserviceoftheCompanyorSubsidiaryasanemployeeforanyperiodoftime.Inaddition,nothinginthisAgreementshallobligatetheCompanyoraSubsidiarytocontinueyouremploymentforanyperiodoftime.

11. Withholding of RSU Shares to Cover Tax Withholding Obligations .

(a) AtthetimeofissuanceofyourRSUShares, totheextent requiredbylaworapplicableregulation , theCompanyshallwithholdfromtheRSUSharesotherwiseissuabletoyouanumber

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ofwholeShareshavingaFairMarketValueasofthedateofvesting,orasofthedateofissuanceinthecaseoftheissuanceofRSUSharesfollowingyour Retirement, equal to the minimumamount of taxesrequiredto bewithheldbylaw. TheFair Market Value of the withheldwholenumberofRSUSharesthatisinexcessoftheminimumamountoftaxesrequiredtobewithheldshallbeaddedtothedepositforyourU.S.federalincometaxwithholdingor,ifyouareaninternationaltaxpayer,suchamountshallbeaddedtothelargestdepositofwithheldtaxrequiredtobemadebytheCompanyonyourbehalf.

(b) You r RSU Shares may not be issued unless the tax withholding obligations of the Company , if any, are satisfied. Accordingly,the RSUShares may not be issued within the time specified in Paragraphs 4, 5, 6 or 7 above and the Company shall have noobligationtoissueacertificateforsuchSharesuntilsuchtaxwithholdingobligationsaresatisfiedorotherwiseprovidedfor.

12. Notices .AnynoticesprovidedforinthePlanorthisAgreementshallbegiveninwritingandshallbedeemedeffectivelygivenuponreceiptor,inthecaseofnoticesdeliveredbymailbytheCompanytoyou,five(5)daysafterdepositintheUnitedStatesmail,postageprepaid,addressedtoyouatthelastaddressyouprovidedtotheCompany.

13. Governing Plan Document .ThisAgreementissubjecttoalltheprovisionsofthePlan,theprovisionsofwhichareincorporatedbyreferenceinthisAgreement.ThisAgreementisfurthersubjecttoallinterpretations,amendments,rulesandregulationswhichmayfromtimetotimebepromulgatedandadoptedpursuanttothePlan.IntheeventofanyconflictbetweentheprovisionsofthisAgreementandthoseofthePlan,theprovisionsofthePlanshallcontrol.

END OF RESTRICTED STOCK UNIT AGREEMENT

(Refer to RSU Award Grant Notice and Acceptance for Specific Grant Information)

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Exhibit 10(i)

WD-40 COMPANY2007 STOCK INCENTIVE PLAN

FY 2017 MARKET SHARE UNIT AWARD GRANT NOTICE AND ACCEPTANCE

Target Number of MSU Shares: The “Vest Quantity” Shown AbovePerformance Measur ement Year End: August 31, 2019Vesting Date: Compensation Committee Certification of Performance AchievementSettlement Date: Not Later Than the “Vest Date” Shown Above (See Award Agreement)

FY 2017 MARKET SHARE UNIT AWARD AGREEMENT

EXECUTIVE OFFICER

Pursuant to yourMarket Share UnitAwardGrant Notice and Acceptance (“Grant Notice”) and thisMarket Share UnitAwardAgreement(“Agreement”),WD-40Company,aDelawarecorporation,(the“Company”)hasawardedtoyouPerformanceShares(referredtohereinasMarketShareUnitsor“MSUs”)undertheWD-40Company2007StockIncentivePlan(the“Plan”)withrespecttothe“TargetNumber”ofsharesoftheCompany’sCommonStockindicatedinyourGrantNotice.DefinedtermsnotexplicitlydefinedinthisAgreementbutdefinedinthePlanshallhavethesamedefinitionsasinthePlan.

ThedetailsofyourMSUsareasfollows:

1. Number of Shares. ThenumberofSharestobeissuedtoyouuponpaymentofyourMSUs(your“MSUShares”)asreferencedinyourGrantNoticewill bedeterminedundertheperformancevestingprovisionsinParagraph3ofthisAgreementequaltoapercentage(the“ApplicablePercentage”)oftheTargetNumberofMSUSharessetforthinyourGrantNotice.TheTargetNumberofMSUSharesmaybeadjustedfromtimetotimeuponchangesincapitalizationoftheCompanypursuanttoSection18ofthePlan.

2. No Payment of Dividend Equivalents. DividendEquivalentsarenotpayablewithrespecttoyourMSUs.UponissuanceofyourMSUSharesatthetimeofvestingorotherwiseasprovidedforherein,youwillthenbeentitledtoreceivedividendsasandwhendeclaredupontheSharesbytheCompany.

3. Performance V esting. YourMSUsvestfollowingaperformancemeasurementperiodofthreefullfiscalyears(the“MeasurementPeriod”)endingasoftheCompany’sfiscalyearendforthesecondfullfiscalyearfollowingtheDateofGrant(the“MeasurementYear”).FollowingtheconclusionoftheMeasurementYear,theCommitteeshallmeet,eitheratitsregularlyscheduledquarterlymeetingorataspecialmeetingoftheCommittee,butinalleventswithinsixty(60)daysfollowingtheendoftheMeasurementYear,tocertifyachievementoftheperformancemeasuresetforthonExhibit A attachedheretoandthevestingofyourMSUsandtheApplicablePercentageoftheTargetNumberofMSUSharestobeissuedtoyou. Exceptas otherwiseprovidedforherein, unless ,priortotheeffectivedateoftheterminationofyouremployment with the Company or a Subsidiary for any reason, including death, resignation or termination by the Company or Subsidiary(“TerminationofEmployment”),theCommitteehascertifiedtheperformancevestingofyourMSUs,allofyourMSUsshallbeforfeited.Intheeventof

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yourTerminationofEmploymentbyreasonofyourdeath,disabilityorRetirement(ashereinafterdefined),yourMSUswillvestonapro-ratamonthlybasis,includingfullcreditforpartialmonthselapsedthroughtheeffectivedateofyourTerminationofEmployment,atthetimeof,andsubjectto,theCommittee’scertificationofachievementoftheperformancemeasureanddeterminationoftheApplicablePercentagefollowingconclusionoftheMeasurementYear.Forpurposesofsuchpro-ratavesting,theTargetNumberofMSUShareswillbeadjustedaccordingtothe pro-rata portion of the Measurement Period for which you were employed. “Retirement” , for purposes of this Agreement, meansTerminationofEmployment(foranyreasonotherthanterminationbytheCompanyoraSubsidiaryforCause):(i)afterattainmentofagesixty-five(65),or(ii)afterattainmentofagefifty-five(55)providedthatyouhavebeeninContinuousServicewiththeCompanyoraSubsidiaryfornotlessthanten(10)years.IntheeventofyourTerminationofEmploymentpriortoRetirementbyreasonofyourvoluntaryresignationorterminationbytheCompanyoraSubsidiaryforreasonsotherthanCause,theCommitteeshallhavediscretiontoprovideforpro-ratavestingasprovidedforhereinabove.

4. Delivery of Shares upon Performance Vesting . ThesettlementdatefordeliveryofyourMSUSharesfollowingcertificationofvesting by the Committee as pr ovided for in Paragraph 3 abovewill be the earlier of the date that is the 3 rdbusiness day following theCompany’s public release of its annual earnings for the Measurement Year or November 15 of the fiscal year immediately following theMeasurementYear(the“SettlementDate”).UponsettlementofyourMSUs,theApplicablePercentageoftheTargetNumberofMSUSharesshallbepaidinShares.SubjecttotheprovisionsofParagraphs6and9ofthisAgreement,theMSUSharesshallbeissuedanddeliveredtoyouortoyourdesignatedBeneficiary(ashereinafterdefined)ontheSettlementDate.IssuanceoftheMSUSharesmaynotbeaccelerated,deferredorotherwiseclaimedbyyouforanyreasonoratanytimeotherthanupontheSettlementDateorotherwiseasprovidedforherein.

5. Change in Control Vesting. Exceptasprovidedforherein,theprovisionsofSection19ofthePlanshallapplytoyourMSUsintheeventofaChangeinControloftheCompany(asdefinedinthePlan).IntheeventofaChangeinControlpriortotheendoftheMeasurementYear, forpurposesofdeterminingthelevelofperformanceachievedasofthedateoftheChangeinControl, theMeasurementYearshall bedeemedtohaveendedimmediatelypriortotheeffectivedateoftheChangeinControl.Insuchevent,theMeasurementShareValueandtheMeasurementIndexValue(asdefinedinExhibit A )shallbedeterminedbasedontheclosingpricefortheSharesandtheclosingIndexvalueasofthedateoftheChangeinControl(notbasedonaverageamountsasprovidedforinExhibit A ). Inaddition,intheeventofaChangeinControl,theproportionatenumberoftheTargetNumberofMSUsnotsubjecttovestingbasedonthelevelofperformanceachievedasofthedateoftheChangeinControlshallbetreatedasequivalentRestrictedStockUnitshavingaPeriodofRestrictionendingontheSettlementDate,subjecttoSection5ofyourChangeof Control SeveranceAgreementwiththeCompany. Youwill beentitledtoreceiveyourvestedMSUSharesthirty(30)daysfollowingthedateoftheChangeinControl.IfaChangeinControloccursaftertheendoftheMeasurementYear,butbeforetheCommitteehascertifiedachievementoftheperformancemeasure,andyouwereemployedbytheCompanyonthedateoftheChangein Control, youwill havethe right, onthe Settlement Date, to receive your vestedMSUShares or the dollar value equivalent thereof,attheCompany’s option , determined in accordance with the vesting provisions of Section 3 of this Agreement. For purposes of the precedingsentence,theSettlementDateshallbedeemedtobethedatethree(3)businessdaysfollowingthedateonwhichthecompanythatsurvivestheChangeinControlpubliclyorprivatelyissuesauditedfinancialstatementsthatincluderesultsoftheCompany’sMeasurementYear,butinnoeventshalltheSettlementDatebelaterthanninety(90)daysfollowingtheendoftheMeasurementYear.

6. Securities Law Compliance. Notwithstandinganythingtothecontrarycontainedherein,yourMSUSharesmaynotbeissuedunlesstheMSUS haresarethenregisteredundertheSecuritiesActof 1933, as amended(the“SecuritiesAct”)or, if suchSharesarenotthensoregistered,theCommitteeortheBoardhasdeterminedthatsuchissuancewouldbeexemptfromtheregistrationrequirementsofthe

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SecuritiesAct.TheissuanceofyourMSUSharesmustalsocomplywithotherapplicablelawsandregulationsgoverningyourMSUShares,andtheissuanceofyourMSUSharesmaybedelayediftheCommitteeortheBoarddeterminesthatsuchissuancewouldnotbeinmaterialcompliancewithsuchlawsandregulations.

7. Transferability. YourMSUsarenottransferable,exceptbywillorbythelawsofdescentanddistribution.Notwithstandingtheforegoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party (your“Beneficiary”)who,intheeventofyourdeath,shallthenbeentitledtoreceivetheMSUSharespayableasofthedateofyourdeath,ifany.

8. Agreement Not a Service Contract or Obligation to Continue Service .ThisAgreementisnotanemploymentorservicecontract,andnothinginthisAgreementshallbedeemedtocreateinanywaywhatsoeveranyobligationonyourparttocontinueintheserviceoftheCompany or Subsidiary as an employee for any period of time . In addition, nothing in this Agreement shall obligate the Company or aSubsidiarytocontinueyouremploymentforanyperiodoftime.

9. Withholding of MSU Shares to Cover Tax Withholding Obligations .

(a) AtthetimeofissuanceofyourMSUShares, totheextentrequiredbylaworapplicableregulation,theCompanyshallwithholdfromtheMSUSharesotherwiseissuabletoyouanumberofwholeShareshavingaFairMarketValueasoftheSettlementDateequaltotheminimumamountoftaxesrequiredtobewithheldbylaw.TheFairMarketValueofthewithheldwholenumberofMSUSharesthat is in excess of the minimum amount of taxes required to be withheld shall be added to the deposit for your U.S. federal income taxwithholdingor,ifyouareaninternationaltaxpayer,suchamountshallbeaddedtothelargestdepositofwithheldtaxrequiredtobemadebytheCompanyonyourbehalf.

(b) You r MSUSharesmay not be issued unless the tax withholding obligations of the Company , if any, are satisfied. Accordingly, theMSUShares may not be issued within the time spec ified in Paragraphs 4 and 5 above and the Company shall have noobligationtoissueacertificateforsuchSharesuntilsuchtaxwithholdingobligationsaresatisfiedorotherwiseprovidedfor.

10. Notices .AnynoticesprovidedforinthePlanorthisAgreementshallbegiveninwritingandshallbedeemedeffectivelygivenuponreceiptor,inthecaseofnoticesdeliveredbymailbytheCompanytoyou,five(5)daysafterdepositintheUnitedStatesmail,postageprepaid,addressedtoyouatthelastaddressyouprovidedtotheCompany.

11. Governing Plan Document .ThisAgreementissubjecttoalltheprovisionsofthePlan,theprovisionsofwhichareincorporatedbyreferenceinthisAgreement.ThisAgreementisfurthersubjecttoallinterpretations,amendments,rulesandregulationswhichmayfromtimetotimebepromulgatedandadoptedpursuanttothePlan.Exceptasspecificallyprovidedforherein,intheeventofanyconflictbetweentheprovisionsofthisAgreementandthoseofthePlan,theprovisionsofthePlanshallcontrol.

END OF MARKET SHARE UNIT AGREEMENT

(Refer to MSU Award Grant Notice and Acceptance for Specific Grant Information)

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EXHIBITA

PERFORMANCEVESTING(ExecutiveOfficer)

SubjecttoSection5oftheMarketShareUnitAwardAgreement,theMSUsshallvestwithrespecttotheApplicablePercentageoftheTargetNumberofMSUSharessetforthinthefollowingtablebasedonrelativetotalstockholderreturn(“TSR”)fortheCompanyovertheMeasurementP eriod as compared to the total return (“Return”) for the Russell 2000 Index (the “Index”) as reported for total return (withdividendsreinvested)byRussellInvestments.ForpurposesofcomputingtherelativeTSRfortheCompanyascomparedtotheReturnfortheIndex,dividendspaidwithrespecttotheSharesshallbetreatedashavingbeenreinvestedasoftheex-dividenddateforeachdeclareddividend,asfurtherdescribedbelow.TSRfortheCompanyshallequalthepercentagechange(positiveornegative)ofthe“MeasurementShareValue”(asdefinedbelow)ascomparedtothe“BaseShareValue”(asdefinedbelow).TheReturnfortheIndexshallequalthepercentagechange(positiveornegative)ofthe“MeasurementIndexValue”(asdefinedbelow)ascomparedtothe“BaseIndexValue”(asdefinedbelow).TherelativeTSR(“RelativeTSR”)representstheabsolutepercentagepointdifferencebetweentheTSRfortheCompanyandtheReturnfortheIndex.

RelativeTSR(absolutepercentagepointdifference)

ApplicablePercentage

>20% 200%20% 200%15% 175%10% 150%5% 125%Equal 100%-5% 75%-10% 50%>-10% 0%

The Applicable Percentage will be determined on a straight line sliding scale from theminimum5 0% Applicable Percentage achievementleveltothemaximum200%ApplicablePercentageachievementlevel.Forpurposesofdeterminingrelativeachievement,actualresultsaretoberoundedtothenearesttenthofonepercentandroundedupwardfromthemidpoint,inalleventsinapositivedirection.Forexample, if the Relative TSR is 4 .94%( the absolute difference between theTSR for the Company and the Return for the Index over theMeasurementPeriodbeing4.94percentagepoints),RelativeTSRwillbe4.9%andtheApplicablePercentagewillbe124.5%.ThenumberofMSUSharestobeissuedontheSettlementDateistoberoundedtothenearestwholeshareandroundedupwardfromthemidpoint.

“Base Share Value” shall represent the averagecomputed value of one (1) share of the Company’s common stock ( as increased, ifapplicable,byadditionalsharestheoreticallyacquiredwithreinvesteddividends,asfurtherdescribedbelow),determinedwithreferencetothedailyclosingpricefortheCompany’sSharesoveraperiodofallmarkettradingdayswithintheninety(90)calendardaysendingonthelastdayoftheCompany’sfiscalyearendedimmediatelypriortotheDateofGrant(the“BaseValueAveragingPeriod”).

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ForpurposesofdeterminingtheBaseShareValue,thedailyvalueofone(1)shareshallbecomputedbasedontheclosingpricefortheCompany’s Shares for each market trading dayuntil the next following ex-dividend date , if any. On the ex-dividenddate , if any , andthereafterthroughtheendoftheBaseValueAveragingPeriod, thedailyvalueshall bebasedonone(1)shareplusanumberofsharesthatwouldtheoreticallybeacquiredon the ex-dividend date , at the closing price for the Company’s Shares on the ex-dividend date, withthedividenddeclaredwithrespecttotheshare.Inthesamemanner,thenumberofsharesshallbeincreasedforcomputingthedailyvalueonacompoundedbasisforeachsuccessivedividend,ifany,declaredpriortotheendoftheBaseValueAveragingPeriod.AsimpleaverageofallofthedailyvaluessocomputedshallrepresenttheBaseShareValue.

“BaseIndexValue”shallrepresenttheaverageclosingvalueoftheIndexoveraperiodofallmarkettradingdayswithintheBaseValueAveragingPeriod.

“MeasurementShareValue”shallrepresenttheaveragecomputedvalueofone(1)shareoftheCompany’scommonstock(asincreased,ifapplicable,byadditionalsharestheoreticallyacquiredwithreinvesteddividendsovertheMeasurementPeriod,includingdividendsreinvestedfor purposes of computing the Base Share Value , as further described below ), determinedwith reference to thedaily closingpricefortheCompany’sSharesoveraperiodofallmarkettradingdayswithinninety(90)calendardaysendingonthelastdayoftheMeasurementYear(the“MeasurementValueAveragingPeriod”).

For purposes of determining the Measurement Share Value, the number of shares as of the first day of the Measurement ValueAveragingPeriodshallfirstbedeterminedbyaddingtheoreticallyreinvesteddividendsharesovertheentireMeasurementPeriodtothenumberofsharesusedincomputationoftheBaseShareValueasoftheendoftheBaseValueAveragingPeriod.Suchreinvesteddividendsharesshallbeaddedonacompoundedbasisasofeachsuccessiveex-dividenddatefordividendsdeclaredwithrespecttotheCompany’sSharesinthesamemannerasdescribedforcomputationoftheBaseShareValue.BeginningonthefirstdayoftheMeasurementShareAveragingPeriod,thedaily value of the shares thus accumulated through dividend reinvestment shall be computed based on the closingprice for the Company’sSharesforeachmarkettradingdayuntilthenextfollowingex-dividenddate.Onsuccessiveex-dividenddates,ifany,andthereafterthroughtheendoftheMeasurementShareAveragingPeriod,thedailyvalueshallbebasedontheincreasednumberofsharesaccumulatedasofeachsuchex-dividenddate.AsimpleaverageofallofthedailyvaluessocomputedshallrepresenttheMeasurementShareValue.

“MeasurementIndexValue”shallrepresenttheaverageclosingvalueoftheIndexoveraperiodofallmarkettradingdayswithintheMeasurementValueAveragingPeriod.

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Exhibit 10(j)

WD-40 COMPANY2007 STOCK INCENTIVE PLAN

FY 2017 DEFERRED PERFORMANCE UNIT AWARD GRANT NOTICE AND ACCEPTANCE

Maximum Number of DPU Shares: The “Vest Quantity” Shown AbovePerformance Measurement Year End: August 31, 2017Vesting Date: August 31, 2017 , Subject To Compensation Committee Certification of Performance AchievementSettlement Date: As Determined By the Compensation Committee at the Time of Certification of Performance Achievement, Pursuant

To Paragraphs 3 and 5 of the FY 2017 Deferred Performance Unit Award Agreement Below

FY 2017 DEFERRED PERFORMANCE UNIT AWARD AGREEMENT

PursuanttoyourDeferredPerformanceUnitAwardGrantNoticeandAcceptance(“GrantNotice”)andthisDeferredPerformanceUnitAwardAgreement(“Agreement”), WD-40Company , a Delawarecorporation, (the “Company”) hasawardedtoyouDeferredPerformanceUnits(“DPUs”)undertheWD-40Company2007StockIncentivePlan(the“Plan”)withrespecttothe“MaximumNumber”ofsharesoftheCompany’sCommonStockindicatedinyourGrantNotice.DefinedtermsnotexplicitlydefinedinthisAgreementbutdefinedinthePlanshallhavethesamedefinitionsasinthePlan.

ThedetailsofyourDPUsareasfollows:

1. Number of Shares. SubjecttothealternativevestingpaymentprovisionsofParagraph3ofthisAgreement,thenumberofSharestobeissuedtoyouuponsettlementofyourDPUs(your“DPUShares”)asreferencedinyourGrantNoticewillbedeterminedundertheperformancevestingprovisionsinParagraph2ofthisAgreementequaltoapercentage(the“ApplicablePercentage”)oftheMaximumNumberofDPUSharessetforthinyourGrantNotice.TheMaximumNumberofDPUspriortoperformancevesting,ortheresultingnumberofDPUSharesdetermineduponperformancevesting,maybeadjustedfromtimetotimeuponchangesincapitalizationoftheCompanypursuanttoSection18ofthePlan.

2. Performance Vesting. YourDPUsvestfollowingaperformancemeasurementperiodofoneyearthatisthecurrentfiscalyearoftheCompany(the“MeasurementYear”).FollowingtheconclusionoftheMeasurementYear,theCommitteeshallmeet,eitheratitsregularlyscheduled quarterly meeting or at a special meeting of the Committee called prior to the Company’s release of its annual earnings for theMeasurement Year, to certify achievement of the performance measure set forth on Exhibit A attached hereto and determination of theApplicablePercentageoftheMaximumNumberofDPUsthatwillbecomevested(your“VestedDPUs”).Exceptasotherwiseprovidedforherein, y our DPUs will be forfeited if your employment with the Company or a Subsidiary is terminated for any reason, including death,resignationorterminationbytheCompanyoraSubsidiary(“TerminationofEmployment”)priortoAugust31oftheMeasurementYear.IntheeventofyourTerminationofEmploymentbyreasonofyourdeath,

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disabilityorRetirement(ashereinafterdefined),youmay,asprovidedforherein,beeligibletoreceiveVestedDPUsdeterminedonapro-ratamonthlybasis,includingfullcreditforpartialmonthselapsedthroughtheeffectivedateofyourTerminationofEmployment,effectiveas of the last day of the Measurement Year and subject to the Committee’s certification of achievement of the performance measure anddeterminationoftheApplicablePercentage.If applicable forsuchpro-ratavesting, theMaximumNumberofDPUShareswillbeadjustedaccordingtothepro-rataportionoftheMeasurementYearforwhichyouwereemployed.InthecaseofyourTerminationofEmploymentduetodeathordisability,pro-ratavestingwilloccuratthediscretionoftheCommittee.InthecaseofyourRetirement(ashereinafterdefined),you will receive the applicable pro-rata amount of Vested DPUs . “Retirement” , for purposes of this Agreement, means Termination ofEmployment(foranyreasonotherthanterminationbytheCompanyoraSubsidiaryforCause):(i)afterattainmentofagesixty-five(65),or(ii)afterattainmentofagefifty-five(55)providedthatyouhavebeeninContinuousServicewiththeCompanyoraSubsidiaryfornotlessthanten(10)years.

3. Alternative Vesting Payment in Cash for International Participants. IfyouarearesidentofajurisdictionotherthantheUnitedStates, the Committee may, as authorized under Sections 4(b) and 11(d) of the Plan, determine, at the time that the Committee certifies theperformancevestingofyourDPUsasprovidedforinParagraph2above,thatyourVestedDPUswillbesettledincashinanamountequaltothenumberofVestedDPUSharesmultipliedbytheclosingpriceoftheSharesasofthedateofsuchcertification.IntheeventyourVestedDPUsaresettledincash,theprovisionsofParagraphs4,5,6and9ofthisAgreementshallnotapplytoyourVestedDPUs.

4. Payment of Dividend Equivalents. UntilissuanceofyourDPUShares,youshallbeentitledtoreceiveDividendEquivalentswithrespecttoyourVestedDPUs,payableincashasandwhendividendsaredeclaredupontheSharesbytheCompany.DividendEquivalentsmaybeaccumulatedbytheCompanybutshallbepaidnolessoftenthanannually.SuchDividendEquivalentsshallconstituteadditionalordinarycompensationincomefortheyearinwhichtheDividendEquivalentsarepaid.DividendEquivalentsshallbepaidwithrespecttoyourVestedDPUsheldasoftherecorddateforthedividenddeclaredupontheSharesbytheCompany,providedthatyouwillnotbedeemedtoholdVestedDPUspriortotheCommittee’scertificationofperformancevestingasprovidedforinParagraph2above.

5. Delivery of Shares upon Termination of Employment – 6 Month Delay . YourVestedDPUsshallbesettledsolelyinSharesuponTerminationofEmployment. Subject to the provisions of Paragraphs6 and9 ofthisAgreement,DPUShares shall beissuedanddelivered to you or to your designated Beneficiary (as hereinafter defined) six (6) months following the day after the effective date of yourTerminationofEmployment(the“SettlementDate”).IssuanceoftheDPUSharesmaynotbeacceleratedorotherwiseclaimedbyyouforanyreasonotherthanfollowingTerminationofEmployment.

6. Securities Law Compliance. Notwithstandinganythingtothecontrarycontainedherein,yourDPUSharesmaynotbeissuedunlesstheDPUS hares are thenregisteredunder theSecurities Actof 1933, as amended(the“SecuritiesAct”)or, if suchShares are not thensoregistered,theCommitteeortheBoardhasdeterminedthatsuchissuancewouldbeexemptfromtheregistrationrequirementsoftheSecuritiesAct. The issuance of yourDPUSharesmust also comply with other applicable laws and regulations governing yourDPUShares , and theissuanceofyourDPUSharesmaybedelayediftheCommitteeortheBoarddeterminesthatsuchissuancewouldnotbeinmaterialcompliancewithsuchlawsandregulations.

7. Transferability. YourDPUsarenottransferable,exceptbywillorbythelawsofdescentanddistribution.Notwithstandingtheforegoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party (your“Beneficiary”)who,intheeventofyourdeath,shallthenbeentitledtoreceivetheDPUShares,ifany,payableasofthedateofyourdeath.

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8. Agreement Not a Service Contract or Obligation to Continue Service .ThisAgreementisnotanemploymentorservicecontract,andnothinginthisAgreementshallbedeemedtocreateinanywaywhatsoeveranyobligationonyourparttocontinueintheserviceoftheCompany or Subsidiary as an employee for any period of time . In addition, nothing in this Agreement shall obligate the Company or aSubsidiarytocontinueyouremploymentforanyperiodoftime.

9. Satisfaction of Tax Withholding Obligations .

(a) AtthetimeofthevestingofyourDPUsasprovidedforinParagraph2above,totheextenttheCompanyorSubsidiaryisrequiredbylawor applicable regulationto withhold andremit anytaxonyour behalf, whether representingpayroll tax, incometaxor otherpersonaltaxobligation,theCompanyorSubsidiaryshallhavetherighttocollect,directlyfromyouorfromothercompensationamountsduetoyoufromtheCompanyorSubsidiary,amountsrequiredtosatisfysuchtaxwithholdingobligations.Totheextentpermittedbylaworapplicableregulation,theCompanyorSubsidiarymaysatisfysuchwithholdingobligationsatsuchtimeaftertheendoftheMeasurementYearandwithinthe same calendar year as may be administratively convenient, such as the date you receive other incentive cash compensation under theCompany’sperformanceincentivecompensationprograms.

(b) AtthetimeofissuanceofyourDPUShares, totheextentrequiredbylaworapplicableregulation, theCompanyshallwithholdfromtheDPUSharesotherwiseissuabletoyou,anumberofwholeShareshavingaFairMarketValueasoftheSettlementDateequaltotheminimumamountoftaxesrequiredtobewithheldbylaw.TheFairMarketValueofthewithheldwholenumberofDPUSharesthat is in excess of the minimum amount of taxes required to be withheld shall be added to the deposit for your U.S. federal income taxwithholdingor,ifyouareaninternationaltaxpayer,suchamountshallbeaddedtothelargestdepositofwithheldtaxrequiredtobemadebytheCompanyonyourbehalf.

(c) Your DPUSharesmaynotbeissuedunlessthetaxwithholdingobligationsoftheCompanyorSubsidiary, if any,aresatisfied.Accordingly,theDPUSharesmaynotbeissuedwithinthetimespecifiedinParagraph5aboveandtheCompanyshallhavenoobligationtoissueacertificateforsuchSharesuntilsuchtaxwithholdingobligationsaresatisfiedorotherwiseprovidedfor.Uponnoticeoftherequirement for recovery from you of any amount due as a tax withholding obligation, you agree to promptly remit to the Company orSubsidiarythefullamountdue.

10. Notices .AnynoticesprovidedforinthePlanorthisAgreementshallbegiveninwritingandshallbedeemedeffectivelygivenuponreceiptor,inthecaseofnoticesdeliveredbymailbytheCompanytoyou,five(5)daysafterdepositintheUnitedStatesmail,postageprepaid,addressedtoyouatthelastaddressyouprovidedtotheCompany.

11. Governing Plan Document .ThisAgreementissubjecttoalltheprovisionsofthePlan,theprovisionsofwhichareincorporatedbyreferenceinthisAgreement.ThisAgreementisfurthersubjecttoallinterpretations,amendments,rulesandregulationswhichmayfromtimetotimebepromulgatedandadoptedpursuanttothePlan.Exceptasspecificallyprovidedforherein,intheeventofanyconflictbetweentheprovisionsofthisAgreementandthoseofthePlan,theprovisionsofthePlanshallcontrol.

END OF DEFERRED PERFORMANCE UNIT AGREEMENT

(Refer to DPU Award Grant Notice and Acceptance for Specific Grant Information)

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EXHIBITA

PERFORMANCEVESTING

In accordance with Paragraph 2 of the D eferredP erformanceU nitAward Agreement, t heDPU s shall vest with respect to theApplicablePercentageoftheMaximumNumberofDPUShares setforthinthefollowingtable,b asedonrelativeachievementwithinanestablishedperformancemeasurerangeoftheCompany’sreportedearningsbeforeinterest,incometaxes,d epreciation(inoperatingdepartments)andamortization computed on a consolidated basis (“Global EBITDA”)for the Measurement Year , before deduction of thestock-basedcompensationexpensefortheVestedDPUsandexcludingothernon-operatingincomeandexpenseamounts(“AdjustedGlobalEBITDA”).

AdjustedGlobalEBITDA ApplicablePercentage>$87,645,000 100%$87,645,000 100%$83,455,000 5%<$83,455,000 0%$83,234,000* 0%

*Impliedzeropercentageachievementlevel.

TheApplicablePercentagewillbedeterminedonastraightlineslidingscalefromtheimpliedzeropercentageachievementleveltothemaximum 10 0% Applicable Percentage achievement level but the Applicable Percentage shall not be less than 5% . For purposes ofdeterminingtheApplicablePercentage,thecalculatedpercentageistoberoundedtothenearesttenthofonepercentandroundedupwardfromthemidpoint.ThenumberofVestedDPUsistoberoundedtothenearestwholeunitandroundedupwardfromthemidpoint.

ForpurposesofcomputingGlobalEBITDAtheCompany’searningsaretobedeterminedinaccordancewiththeCompany’sthenapplicableGenerallyAcceptedAccountingPrinciples(currentlyU.S.GAAP).

Exhibit 10(p )

CHANGE OF CONTROL SEVERANCE AGREEMENT

THIS AGREEMENT (“Agreement”) is made on this 14 th day ofFebruary, 2006 (the “Effective Date”) between WD-40 COMPANY(hereinafter the“Company”)andGARRYO.RIDGE(hereinafterthe“Executive”).

RECITALS:Whereas, the Companyhas determined that the Executive is amongthat groupof keymanagers whoseservices andparticipation in management maybe

criticalinanyperiodoftransition,suchasatthetimeofanychangeincontroloftheCompanyorinthefaceofanyproposedcorporatereorganizationoracquisition,friendlyorhostile,affectingtheCompany.Accordingly,theboardofdirectorsoftheCompany(the“Board”)hasdeterminedthatitisappropriateandinthebestinterestsoftheCompanyanditsstockholdersthatprovisionsbemadetoencouragetheExecutive’scontinuedattentionandundistracteddedicationtotheExecutive’sdutiesinthepotentiallydisturbingcircumstancesofapossiblechangeincontroloftheCompany,byprovidingtheExecutivewithsomedegreeofpersonalfinancialsecurityundersuchcircumstances.

NOWTHEREFORE,thepartiesagreeasfollows:1.ChangeinControl:ForpurposesofthisAgreement,ChangeinControlshallmean:

(a) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities ExchangeActof1934,asamended(the“ExchangeAct”))(a“Person”), ofbeneficial ownership(withinthemeaningofRule13d-3promulgatedundertheExchangeAct)of30%ormoreofeither (i) thethen-outstandingsharesofcommonstockoftheCompany(the“OutstandingCompanyCommonStock”)or(ii) thecombinedvotingpowerofthethen-outstandingvotingsecuritiesoftheCompanyentitledtovotegenerallyintheelectionofdirectors(the“OutstandingCompanyVotingSecurities”);provided,however,thatthefollowingacquisitionsshallnotconstituteaChangeinControl:(A)anyacquisitiondirectlyfromtheCompany(excludinganacquisitionbyvirtueoftheexerciseofaconversionprivilege),(B)anyacquisitionbyanyemployeebenefitplan(orrelatedtrust)sponsoredormaintainedbytheCompanyoranycorporation controlled by the Company or (C) any acquisition by any corporation pursuant to a reorganization, merger or consolidation, if, following suchreorganization,mergerorconsolidation,theconditionsdescribedinsubclauses(i),(ii)and(iii)ofsubparagraph(c)ofthissentencearesatisfied;or

(b) if individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least amajority of theBoard; provided, however, that anyindividual becomingadirector subsequent tothedate hereof whoseelection, or nominationfor electionbytheCompany’s stockholders, was approved by a vote of at least two-thirds of the directors then constituting the Incumbent Board shall be considered as thoughsuchindividualwereamemberoftheIncumbentBoard,butexcluding,forthispurpose,anysuchindividualwhoseinitialassumptionofofficeoccursasaresultofeitheranactualorthreatenedelectioncontestsubjecttoRule14a-11ofRegulation14ApromulgatedundertheExchangeActorotheractualorthreatenedsolicitationofproxiesorconsentsbyoronbehalfofaPersonotherthantheBoard;or

(c) approval by the stockholders of the Company of a reorganization, merger or consolidation, unless following such reorganization,mergerorconsolidation(i)morethan60%of,respectively,thethen-outstandingsharesofcommonstockofthecorporationresultingfromsuchreorganization,mergerorconsolidationandthecombinedvotingpowerofthethenoutstandingvotingsecuritiesofsuchcorporationentitledtovotegenerallyintheelectionofdirectorsisthenbeneficiallyowned,directlyorindirectly,byallorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecuritiesimmediatelypriortosuchreorganization,merger,orconsolidationinsubstantiallythesameproportions as their ownership, immediately prior to such reorganization, merger or consolidation, of the Outstanding Company Common Stock and OutstandingCompanyVotingSecurities, asthecasemaybe(forpurposesofdeterminingwhethersuchpercentagetest is satisfied, thereshall beexcludedfromthenumberofshares and voting securities of the resulting corporation owned by the Company's stockholders, but not from the total number of outstanding shares and votingsecurities of the resulting corporation, anyshares or votingsecurities receivedbyanysuchstockholder in respect of anyconsideration other thanshares or votingsecuritiesoftheCompany);(ii)noPerson(excludingtheCompany,anyemployeebenefitplan(orrelatedtrust)oftheCompany,anyqualifiedemployeebenefitplanofsuchcorporationresultingfromsuchreorganization,mergerorconsolidationandanyPersonbeneficiallyowning,immediatelypriortosuchreorganization,mergerorconsolidation,directlyorindirectly, 20%ormoreoftheOutstandingCompanyCommonStockorOutstandingCompanyVotingSecurities, asthecasemaybe)beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from suchreorganization, mergerorconsolidationorthecombinedvotingpowerofthethen-outstandingvotingsecuritiesofsuchcorporationentitledtovotegenerallyintheelectionofdirectors;and(iii)atleast

amajorityofthemembersoftheboardofdirectorsofthecorporationresultingfromsuchreorganization,mergerorconsolidationweremembersoftheIncumbentBoardatthetimeoftheexecutionoftheinitialagreementprovidingforsuchreorganization,mergerorconsolidation;or

(d) (i) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company or (ii) the first to occurof(A)thesaleorotherdisposition(inonetransactionoraseriesofrelatedtransactions)ofallorsubstantiallyalloftheassetsoftheCompany,or(B)theapprovalbythe stockholders of the Company of any such sale or disposition, other than, in each case, any such sale or disposition to a corporation, with respect to whichimmediatelythereafter,(1)morethan60%of,respectively,thethen-outstandingsharesofcommonstockofsuchcorporationandthecombinedvotingpowerofthethen-outstandingvotingsecuritiesofsuchcorporationentitledtovotegenerallyintheelectionofdirectorsisthenbeneficiallyowned,directlyorindirectly,byallorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecuritiesimmediatelypriortosuchsaleorotherdispositioninsubstantiallythesameproportionastheirownership,immediatelypriortosuchsaleorotherdisposition,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecurities,asthecasemaybe(forpurposesofdeterminingwhethersuchpercentage test is satisfied, there shall be excluded from the number of shares and voting securities of the transferee corporation owned by the Company’sstockholders,butnotfromthetotalnumberofoutstandingsharesandvotingsecuritiesofthetransfereecorporation,anysharesorvotingsecuritiesreceivedbyanysuchstockholderinrespectofanyconsiderationotherthansharesorvotingsecuritiesoftheCompany);(2)noPerson(excludingtheCompany,anyemployeebenefitplan(orrelatedtrust)oftheCompany,anyqualifiedemployeebenefitplanofsuchtransfereecorporationandanyPersonbeneficiallyowning,immediatelypriortosuchsaleorotherdisposition,directlyorindirectly,20%ormoreoftheOutstandingCompanyCommonStockorOutstandingCompanyVotingSecurities,asthecasemaybe)beneficiallyowns,directlyorindirectly,30%ormoreof,respectively,thethen-outstandingsharesofcommonstockofsuchtransfereecorporationandthecombinedvotingpowerofthethen-outstandingvotingsecuritiesofsuchtransfereecorporationentitledtovotegenerallyintheelectionofdirectors;and(3)atleastamajority of the members of the board of directors of suchtransferee corporation were members of the Incumbent Board at the timeof the execution of the initialagreementoractionoftheboardprovidingforsuchsaleorotherdispositionofassetsoftheCompany.

2.TerminationFollowingaChangeinControl:(a)TheExecutiveshallbeentitledtothecompensationprovidedforinParagraph3ifallofthefollowingconditionsaresatisfied:(i)thereisaChangeinControloftheCompanywhiletheExecutiveisstillanemployeeoftheCompany;(ii)theExecutive’semploymentwiththeCompanyisterminatedwithintwoyearsaftertheChangeinControl;and(iii) the Executive's termination of employment is not a result of (A) the Executive's death; (B) the Executive’s Disability (as defined in

subparagraph2(b) below); (C)theExecutive’s Retirement (asdefinedinsubparagraph2(c) below); (D)theExecutive's terminationbytheCompanyfor Cause(asdefined in subparagraph 2(d) below); or (E) the Executive’s decision to terminate employment other than for Good Reason (as defined in subparagraph 2(e)below).Notwithstandingtheforegoing,ifaChangeofControloccursandiftheExecutive'semploymentwiththeCompanyisterminatedpriortothedateonwhichtheChangeofControloccurs,andifitisreasonablydemonstratedbytheExecutivethatsuchterminationofemployment(i)wasattherequestofathirdpartywhohastakenstepsreasonablycalculatedtoeffectaChangeofControlor(ii)otherwisearoseinconnectionwithorinanticipationofaChangeofControl,thentheExecutiveshallbeentitledtothecompensationprovidedforinParagraph3.

(b) If, as a result of the Executive’s incapacity due to physical or mental illness, the Executive shall have been unable, with or withouta reasonable accommodation, to perform the Executive’s duties with the Company on a full time basis for six months and if, within 30 days after a Notice ofTermination(asdefinedinsubparagraph2(f))isthereaftergivenbytheCompany,theExecutiveshallnothavereturnedtothefulltimeperformanceoftheExecutive'sduties,theCompanymayterminatetheExecutive'semploymentfor“Disability”.

(c) The term “Retirement” as used in this Agreement shall mean termination by the Company or the Executive of the Executive’semploymentundercircumstanceswherebytheExecutiveisotherwiseentitledtoreceivebenefitspayableunderthepresentlyexistingSupplementalRetirementBenefitPlanenteredintobetweentheCompanyandtheExecutiveorsuchothernonqualifiedretirementbenefitplanprovidingsubstantiallysimilarbenefits.

(d) The Company may terminate the Executive's employment for Cause before or after a Change in Control. For purposes of thisAgreementonly,“Cause”shallmean:(i)theExecutive’scommissionofactssubjecttoprosecutionasafelonyinvolvingmoralturpitude;(ii)theExecutive’smaterialbreachoffiduciarydutyasanexecutiveofficeroftheCompanywhichhasresulted,orislikelytoresult,inmaterialeconomicdamagetotheCompany;or(iii)theExecutive’swillfulgrossmisconductorwillfulgrossneglectofduties(otherthananysuchneglectresultingfromtheExecutive'sincapacityduetophysicalormentalillnessoranysuchneglectaftertheissuanceofaNoticeofTerminationbytheExecutiveforGoodReason,assuchtermsaredefinedinsubparagraphs(e)and(f)

belowandastheymayapplyunderthisParagraph2);providedthatnoactorfailuretoactbytheExecutivewillconstitute“Cause”underclause(ii)iftheExecutivebelievedingoodfaiththatsuchactorfailuretoactwasinthebestinterestoftheCompany.

AnyterminationoftheExecutive’semploymentbytheCompanyforCauseshallbeauthorizedbyavoteofatleastamajorityoftheindependentmembersofthe Board (as they maybe determined by the Board fromtime to time) within 12 months of a majority of such independent members of the Board having actualknowledgeoftheeventorcircumstancesprovidingabasisforsuchtermination.Inthecaseofclauses(i)and(ii)ofthesecondsentenceofthissubparagraph(d),theExecutive shall be given notice by the Board specifying in detail the particular act or failure to act on which the Board is relying in proposing to terminate theExecutiveforCauseandofferingtheExecutiveanopportunity,onadateatleast14daysafterreceiptofsuchnotice,tohaveahearing,withcounsel,beforeamajorityof the independent members of the Board, including each of the members of the Board who authorized the termination for Cause. The Executive shall not beterminatedforCauseif,within30daysafterthedateoftheExecutive’shearingbeforetheBoard(oriftheExecutivewaivesahearing,within30daysafterreceivingnoticeoftheproposedtermination),theExecutivehascorrectedtheparticularactorfailuretoactspecifiedinthenoticegivenunderclause(ii)ofthesecondsentenceofthissubparagraph(d),andbysocorrectingsuchactorfailuretoacttheExecutivehasreducedtheeconomicdamagetheactorfailuretoacthasallegedlycausedtheCompanytoalevelwhichisnolongermaterialorhaseliminatedtheprobabilitythatsuchactorfailuretoactislikelytoresultinmaterialeconomicdamagetotheCompany. Notermination for Cause shall take effect until the expiration of the correction period described in the preceding sentence and the determination by amajority of the independent members of the Board that the Executive has failed to correct the act or failure to act in accordance with the terms of the precedingsentence.Otherthanasspecifiedherein,thedecisionofamajorityoftheindependentmembersoftheBoardofDirectorswithrespecttoanydeterminationofthegroundsforterminationoftheExecutive’semploymentforCauseshallbebindingabsentevidenceofbadfaithormanifestinjustice.

(e) The Executive may terminate the Executive’s employment for Good Reason at any time following a Change in Control. ForpurposesofthisAgreement,“GoodReason”shallmean,afteranyChangeinControlandwithouttheExecutive’sexpresswrittenconsent,anyofthefollowing:

(i)asignificantdiminutionintheExecutive'sdutiesandresponsibilities,ortheassignmenttotheExecutivebytheCompanyofdutiesinconsistentwiththeExecutive's position, duties, responsibilities orstatuswiththeCompanyimmediatelyprior toaChangeinControloftheCompany,oranyremovaloftheExecutivefromoranyfailuretore-electtheExecutivetoanyofsuchpositions,exceptinconnectionwiththeterminationofemploymentforDisability,RetirementorCauseorasaresultoftheExecutive’sdeathorbytheExecutiveotherthanforGoodReason;

(ii) a reduction by the Company in the Executive’s annual rate of base salary as in effect immediately prior to a Change of Control or theCompany’sfailuretoincrease(within12monthsoftheExecutive’s last adjustment inannual rateofbasesalary) theExecutive's annual rateof basesalaryafter aChangeinControloftheCompanyinanamountwhichatleastequals,onapercentagebasis,theaveragepercentageincreaseintheannualrateofbasesalarymostrecentlyorthencurrentlybeingeffectedforallotherexecutiveofficersoftheCompany;

(iii)(A)anyfailurebytheCompanytocontinueineffectanybenefitplanorarrangement(including,withoutlimitation,medical,dental,andotherestablished benefit plans (“Welfare Benefit Plans”), group life insurance and retirement plans) in which the Executive is participating at the time of a Change inControl of the Company (all hereinafter referred to as “Benefit Plans”) unless the Executive receives benefits through another plan or arrangement providing theExecutivewithbenefits,whenconsideredintheaggregate,thatarenolessfavorablethanthebenefitsunderallBenefitPlansavailabletotheExecutiveatthetimeofaChangeinControl,or(B)thetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive’sparticipationinormateriallyreducetheExecutive’sbenefits undertheBenefit Plansor otherwisedeprivetheExecutiveof anymaterial fringebenefit or perquisite of officeenjoyedbytheExecutiveat thetimeofaChangeinControloftheCompanyconsideredintheaggregatewithallbenefitssoprovidedtotheExecutive;

(iv)(A)anyfailurebytheCompanytocontinueineffectanyincentiveplanorarrangement(including,withoutlimitation,theCompany’sincentivebonusandcontingentbonusarrangementsandcreditsandtherighttoreceiveperformanceawardsandsimilarlongandshort-termincentivecompensationbenefits)inwhichtheExecutiveisparticipatingatthetimeofaChangeinControloftheCompany(hereinafterreferredtoas“IncentivePlans”),(B)thetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive’sparticipationinanysuchIncentivePlanorreducetheExecutive’sbenefitsunderanysuchIncentivePlan,unless in the case of either subclause (A) or (B) above, there is substituted a comparable plan or programthat is economically equivalent, in terms of the benefitofferedtotheExecutive,totheIncentivePlanbeingaltered,reduced,affectedorended,or(C)anyfailurebytheCompanywithrespecttoanyfiscalyeartomakeanawardtotheExecutivepursuanttoeachsuchIncentivePlanorsuchsubstitutedcomparableplanorprograminaccordancewithitstermsorotherwiseinamannerconsistentwithawardsorbenefitsprovidedtootherexecutiveofficersoftheCompany;

(v) (A) any failure by the Company to continue in effect any plan or arrangement to receive securities of the Company (including, withoutlimitation,theCompany'sstockoptionplansandotherequityincentiveplansasauthorizedbytheBoardfortheseniorexecutiveofficers)inwhichtheExecutiveisparticipatingatthetime

ofaChangeinControloftheCompany(hereinafterreferredtoas“SecuritiesPlans”),orthetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive'sparticipationinormateriallyreducetheExecutive’sbenefitsunderanysuchSecuritiesPlanor(B)anyfailurebytheCompanyinanyfiscalyeartograntstockoptions, stockappreciation rights or securities awards to the Executive pursuant to suchSecurities Plans or otherwise in a manner consistent with awards orgrantsprovidedtootherexecutiveofficersoftheCompany;andprovidedfurtherthatthematerialtermsandconditionsofsuchstockoptions,stockappreciationrights,andsecuritiesawardsgrantedtotheExecutiveaftertheChangeinControl(including,butnotlimitedto,theexerciseprice,vestingschedule,periodandmethodsofexercise, expiration date, forfeiture provisions and other restrictions) are substantially similar to the material terms and conditions of the stock options, stockappreciationrights,andsecuritiesawardsgrantedtotheExecutiveundertheSecuritiesPlansimmediatelypriortotheChangeinControloftheCompany;

(vi)arelocationoftheCompany’sprincipalexecutiveofficestoalocationmorethan100milesoutsideofSanDiego,California,ortheExecutive’srelocationmorethan100milesfromthelocationatwhichtheExecutiveperformedtheExecutive'sdutiespriortoaChangeinControloftheCompany,exceptforrequired travel by the Executive on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations at the time of aChangeinControloftheCompany;

(vii)anyfailurebytheCompanytoprovidetheExecutivewiththenumberofannualpaidvacationdaystowhichtheExecutiveisentitledfortheyearinwhichaChangeinControloftheCompanyoccurs;

(viii)anymaterialbreachbytheCompanyofanyprovisionofthisAgreement;(ix)anyfailurebytheCompanytoobtaintheassumptionofthisAgreementbyanysuccessororassignoftheCompany;(x) theCompanyor its successor nolonger is requiredto haveits commonstockregisteredpursuant to Section12(b) or 12(g) of theSecurities

ExchangeActof1934,asamended;or(xi)anypurportedterminationoftheExecutive’semploymentbytheCompanypursuanttosubparagraphs2(b),2(c)or2(d)whichisnoteffected

pursuant to a Noticeof Terminationsatisfyingtherequirements of subparagraph2(f) below(and, if applicable, subparagraph2(d) above), andfor purposes of thisAgreement,nosuchpurportedterminationshallbeeffective.

Forpurposesofthissubparagraph(e),anisolated,immaterial,andinadvertentactionnottakeninbadfaithbytheCompanyinviolationofclauses(i)-(v),(vii)or(xi)ofthissubparagraphthatisremediedbytheCompanypromptlyafterreceiptofnoticethereofgivenbytheExecutiveshallnotbeconsideredGoodReason for the Executive’s termination of employment with the Company. In the event the Executive terminates the Executive’s employment for Good Reasonhereunder,thennotwithstandingthattheExecutivemayalsobeconsideredretiredforpurposesofBenefitPlans(otherthantheSupplementalRetirementBenefitPlanorothernon-qualifiedplanprovidingsimilarbenefits),IncentivePlansorSecuritiesPlans,theExecutiveshallbedeemedtohaveterminatedemploymentforGoodReasonforpurposesofthisAgreement.

(f) Any termination of the Executive’s employment by the Company pursuant to subparagraphs 2(b), 2(c) or 2(d), or by the Executivepursuant to subparagraph 2(e) above, shall be communicated by a Notice of Termination to the other party hereof. For purposes of this Agreement, a “Notice ofTermination”shallmeanawrittennoticewhichshallindicatethosespecificterminationprovisionsinthisAgreementrelieduponandwhichsetsforthinreasonabledetail thefactsandcircumstancesclaimedtoprovideabasisforterminationoftheExecutive’semploymentundertheprovisionsoindicated. ForpurposesofthisAgreement,nosuchpurportedterminationbytheCompanyshallbeeffectivewithoutsuchNoticeofTermination.

(g) “Date of Termination” shall mean (i) if the Executive’s employment is terminated by the Company for Disability, 30 days afterNoticeofTerminationisgiventotheExecutive(providedthattheExecutiveshallnothavereturnedtotheperformanceoftheExecutive’sdutiesonafulltimebasisduringsuch30dayperiod),(ii)iftheExecutive’semploymentisterminatedbytheExecutiveforGoodReason,thedatespecifiedintheNoticeofTermination,and(iii)iftheExecutive’semploymentisterminatedbytheCompanyforanyotherreason,thedateonwhichaNoticeofTerminationisgiven;provided,however,thatifwithin30daysafteranyNoticeofTerminationisgiventotheExecutivebytheCompany,theExecutivenotifiestheCompanythatadisputeexistsconcerningthetermination, theDateofTerminationshall beadatenoearlier thanthedateonwhichtheNoticeofTerminationisgiven,butotherwise, if theterminationistobeeffective,asofthedatesodetermined,whetherbymutualwrittenagreementofthepartiesoruponfinaljudgment,orderordecreeofacourtofcompetentjurisdiction.

3.SeveranceCompensationUponTerminationofEmploymentFollowingaChangeinControl:(a) If, pursuant to subparagraph 2(a), the Executive is entitled to the compensation provided for in this Paragraph 3, then, subject to

theprovisionsofParagraph7below,theCompanyshallpaytotheExecutiveinalumpsumcashpayment,thefollowing:(i)theChangeinControlSeveranceAmountasdefinedinsubparagraph3(b)belowwithinfivedaysfollowing,butnotearlierthan,thesixthmonth

anniversaryoftheDateofTermination;plus(ii)theExecutive’searnedbutunpaidbaseannualsalarythroughtheperiodendingontheDateofTerminationwithinthetimerequiredbylawfor

thepaymentofwagesuponterminationofemployment;plus

(iii) interest, if any, ontheamounts payable pursuant toclauses (i) and(ii) abovecalculatedfromtheDateof Terminationuntil paid(includinginterestcalculatedforthesixmonthperiodfromtheDateofTerminationtothedateofpaymentpursuanttoclause(i)orfromtheDateofTerminationtothedateofpaymentpursuanttoclause(ii)ifnotpaidwhendue)atarateequaltotheprimerateaspublishedintheWallStreetJournalontheDateofTerminationplusthreepercentagepoints,compoundedannually.

(b) “Change in Control Severance Amount” shall mean an amount equal to the sum of (i) two times the greater of (A) the Executive’sbaseannualsalaryineffectasoftheDateofTerminationor(B)theaverageoftheExecutive’sbaseannualsalarypaidforthefivefiscalyearsendingpriortotheDateofTermination,plus(ii)twotimesthegreaterof(A)theannualcashbonusawardedbytheBoardtotheExecutivewithrespecttotheCompany'smostrecentfiscalyear ending prior to the Date of Termination or (B) the average of the annual cash bonus amounts awarded by the Board to the Executive with respect to theCompany'smostrecentfivefiscalyearsendingpriortotheDateofTermination.

(c) If, pursuant to subparagraph 2(a), the Executive is entitled to the compensation provided in this Paragraph 3, then the ExecutivewillbeentitledtocontinuedparticipationinallWelfareBenefitPlans(asdefinedinsubparagraph2(e)(iii)above)inwhichtheExecutivewasparticipatingontheDateofTermination,suchcontinuedparticipationtobeatCompanycostandotherwiseonthesamebasisasCompanyemployeesgenerally,untiltheearlierof(i)thedate,or dates, the Executive receives equivalent coverage and benefits under the plans and programs of a subsequent employer (such coverages and benefits to bedeterminedonacoverage-by-coverageorbenefit-by-benefit basis)or(ii) twoyearsfromtheDateofTermination; provided(A)if theExecutiveisprecludedfromcontinuingparticipationinanyWelfareBenefitPlanasprovidedinthissentence,theExecutiveshallbepaid,inalumpsumcashpayment,within30daysfollowingthedateitisdeterminedtheExecutiveisunabletoparticipateinanyWelfareBenefitPlan,theafter-taxeconomicequivalentofthebenefitsprovidedundertheplanorprograminwhichtheExecutiveis unable toparticipate for theperiodspecifiedinthis sentence, and(B)theeconomicequivalent of anybenefit foregoneshall bedeemedtobethelowestcostthatwouldbeincurredbytheExecutiveinobtainingsuchbenefit(includingfamilyordependentcoverage,ifapplicable)onanindividualbasis.TheExecutiveshallbeeligibleforgrouphealthplancontinuationcoverageunderandinaccordancewiththeConsolidatedOmnibusBudgetReconciliationActof1985,asamended,whentheExecutiveceasestobeeligibleforcontinuedparticipationintheCompany'sgrouphealthplanunderthissubparagraph(c).

4. Company Right to Terminate Employment With or Without Cause; No Obligation of Executive to Mitigate Damages; No Effect On OtherContractualRights:

(a) Notwithstanding anything to the contrary herein, the Executive shall serve the Company at the pleasure of the Board and theBoardmayterminate the Executive’s employment at anytime, with our without Cause subject to the Executive’s right to payment of the severance compensationprovided for herein, if applicable. The Executive hereby acknowledges that this agreement does not guarantee continued employment with the Company for anyperiodoftimeanduponterminationoftheExecutive’semployment,theExecutiveshallhavenoclaimforcompensationorotherbenefitspursuanttothisagreementexceptasspecificallysetforthhereinfollowingaChangeofControl.

(b) The Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement byseeking other employment or otherwise, nor shall the amount of any payment provided for under this Agreement be reduced by any compensation earned by theExecutiveastheresultofemploymentbyanotheremployeraftertheDateofTerminationorotherwise.

(c) The provisions of this Agreement, and any payment provided for hereunder, shall not reduce any amounts otherwise payable, orinanywaydiminishtheExecutive’sexistingrights,orrightswhichwouldaccruesolelyasaresultofthepassageoftime,underanyBenefitPlan,IncentivePlanorSecuritiesPlan,orothercontract,planoragreementwithoroftheCompany.

5.Options,SecuritiesAwards,AndIncentiveAwards:(a) In the event of a Change in Control of the Company, then notwithstanding the terms and conditions of any Securities Plan or other

plan,agreementorarrangement,(i)ifanySecuritiesPlanwillnotbecontinuedastothesecuritiesoftheCompanyorastosubstantiallyequivalentpubliclytradedsecuritiesoftheCompanyoranysuccessorentity,or(ii)iftheExecutive’semploymentisterminatedandtheExecutiveisentitledtothecompensationprovidedforinParagraph3,thentheCompanyagreestoaccelerate,vest,andmakeimmediatelyexercisableinfullallunexercisableinstallmentsofalloptionstoacquiresecuritiesoftheCompany,tovestall unvestedawardsofsecuritiesoftheCompanyandtowaiveanyresaleorotherrestrictionsorrightsofrepurchaseapplicabletosecuritiesunderlyingsuchoptionsorapplicabletoawardsofsecuritiesoftheCompanyineachcase,whichareheldbytheExecutiveonthedateofsuchChangeinControl,includingwithoutlimitationanyoptionsorsecuritiesobtainedbytheExecutivepursuanttoanySecuritiesPlanorsecuritiesobtainedbytheExecutivepursuanttoanydiscontinuedIncentivePlan(asdefinedinsubparagraph2(e))totheextentthattheExecutivemaynototherwisebeabletorealizetheexpectedbenefitsthereofuponcontinuedemploymentbytheCompanyorapubliclytradedsuccessorentity.

(b) If the provisions of subparagraph (a) of this Paragraph 5 are applicable with respect to any Securities Plan within six (6) monthsfollowingaChangeinControl,anyoptionsorsecuritiesobtainedbytheExecutivepursuanttothediscontinuedSecuritiesPlanorsecuritiesobtainedbytheExecutivepursuanttoanyIncentivePlanasdescribedinsubparagraph(a)shallhavealimitedrightofsurrenderallowingtheExecutivetosurrendersuchoptionsorsecuritieswithinthe30dayperiodfollowingthedateonwhichtheprovisionsofsubparagraph(a)firstbecomeapplicableandtoreceiveacashpaymentinexchangeforthesurrenderofsuchoptionsorsecurities.Theamountofsuchpaymentshallbeequaltothesumof(i)theproductofthenumberofsecuritiesobtainedbytheExecutivepursuanttosuchSecuritiesPlanorIncentivePlanmultipliedbythegreaterof(x)thefairmarketvalueofthesecuritiesoftheCompanyonthedatepriortotheChangeinControlor(y)thepersharepricepaidtoshareholdersinconnectionwithsuchChangeinControl(alternatively,the“SecuritiesPrice”)and(ii)theproductof(a)thenumber of securities coveredbyoptions multiplied by(b) the positive amount, if any, equal to the Securities Price minusthe exercise price. Notwithstandingtheforegoing,ifanysuchpaymentwouldresultinliabilityunderSection16oftheExchangeAct,therightofsurrendershallcommenceupontheearliestdateitcanbeexercisedbytheExecutivewithoutliabilityandcontinueforthirtydaysthereafter.

6. Termination : This Agreement shall continue in effect for a period of two (2) years and shall automatically renew for successive two (2) yearperiodsfromtheearlierof(a)thenextscheduledterminationdate,unlesstheBoardprovidestheExecutivewithanoticeofnon-renewalatleast6monthsbeforethenextscheduledterminationdate,or(b)theeffectivedateofaChangeofControl.

7. Adjustment Related to Application of Excise Tax : If the Executive is entitled to receive the compensation provided for in Paragraph 3 and anypaymentreceivedortobereceivedbytheExecutiveisorwillbesubjecttothetax(the“ExciseTax”)imposedbySection4999oftheInternalRevenueCodeof1986,asamended(the“Code”),theadjustmentsetforthinsubparagraph(a)shallbemadetothepaymentsprovidedforinParagraph3above.

(a) If the present value of all benefits and payments to the Executive included in the determination of “parachute payments” pursuanttoSection280G(b)(2)oftheCodereceivedbyortobereceivedbytheExecutive(the“ParachutePayments”)isequaltoorexceeds3timesthe“baseamount”withrespect to the Executive as determined pursuant to Section 280G(b)(3) of the Code (the “Base Amount”), then the amount payable to the Executive pursuant toParagraph3aboveshallbereducedsothatthepresentvalueoftheParachutePaymentsisequalto3timestheBaseAmountminusthesumofOneHundredDollars($100.00.)

(b) It is the intention of the parties to this Agreement that the compensation payable to the Executive pursuant to this AgreementcontingentuponaChangeofControloftheCompanywillnotresultinany“excessparachutepayment”totheExecutiveasdeterminedunderSection280G(b)oftheCode or application of the Excise Tax to any such excess parachute payment. The provisions of this Paragraph 7 shall be applied so as to carry out the parties’intentionwithrespecttosuchtaxtreatment.EachpartyagreestotakesuchactionasmaybenecessaryorappropriatetocarryouttheprovisionsofthisParagraph7andto cooperate with the other as to all required determinations, includingthe payment or return of anypayment determined to bedueto the Executive or to theCompany,respectively.TheCompanyshallpayallcostsofaccountingtoassurecompliancewiththeintentofthisParagraph7.

8. Successors : The Company will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to allor substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to the Executive, expressly, absolutely andunconditionallytoassumeandagreetoperformthisAgreementinthesamemannerandtothesameextentthattheCompanywouldberequiredtoperformitifnosuchsuccessionorassignmenthadtakenplace.AnyfailureoftheCompanytoobtainsuchagreementpriortotheeffectivenessofanysuchsuccessionorassignmentshallbeamaterialbreachofthisAgreementandshallentitletheExecutivetoterminatetheExecutive’semploymentforGoodReasonandreceivethecompensationprovided for in Paragraph 3 above. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor or assign to itsbusinessand/orassetsasaforesaidwhichexecutesanddeliverstheagreementprovidedforinthisParagraph8orwhichotherwisebecomesboundbyallthetermsandprovisionsofthisAgreementbyoperationoflaw.

9. Survivorship : The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extentnecessarytotheintendedpreservationofsuchrightsandobligationsandtotheextentthatanyperformanceisrequiredfollowingterminationofthisAgreement.

10. Notices : Any notice, request, demand or other communication required or permitted hereunder shall be deemed to be properly given whenpersonally served in writing, when deposited in the United States mail, postage prepaid, or when communicated to a public telegraph company for transmittal,addressedtotheCompanyatitsheadofficelocationortheExecutiveattheExecutive’slastknownaddress.Eitherpartymaychangeitsaddressbywrittennoticeinaccordancewiththisparagraph.

11. Benefit of Agreement : This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal and legal representatives,executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while any amounts are still payable to the Executivehereunder,allsuchamounts,unlessotherwiseprovidedherein,shallbepaidinaccordancewiththetermsofthisAgreementtotheExecutive'sdevisee,legateeorotherdesigneeor,iftherebenosuchdesignee,totheExecutive’sestate.

12. Applicable Law : Except to the extent governed by the laws of the United States, this Agreement is to be governed by and construed under thelawsoftheStateofCalifornia.

13. Captions and Paragraph Headings : Captions and paragraph headings used herein are for convenience only and are not a part of this AgreementandshallnotbeusedintheinterpretationofthisAgreement.

14. Invalid Provisions : Should any provision of this Agreement for any reason be declared invalid, void or unenforceable by a court of competentjurisdiction,thevalidityandbindingeffectofanyremainingportionshallnotbeaffected,andtheremainingportionsofthisAgreementshallremaininfullforceandeffectasifthisAgreementhadbeenexecutedwithsaidprovisioneliminated.

15. Entire Agreement : This Agreement contains the entire agreement of the parties. It supersedes any and all other agreements, either oral or inwriting,betweenthepartiesheretowithrespecttothematterscoveredherein.andspecifically,theEmploymentAgreementbetweentheCompanyandtheExecutivedatedAugust2,1999,asamendedonMay20,2002isterminatedasoftheEffectiveDateofthisAgreement. EachpartytothisAgreementacknowledgesthatnorepresentations, inducements, promises, or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are notembodied herein, and that no other agreement, statement, or promise relating to the matters covered herein and not contained in this Agreement shall be valid orbinding.ThisAgreementmaynotbemodifiedoramendedbyoralagreement,butonlybyanyagreementinwritingsignedbytheCompanyandtheExecutive.

16. Attorney’s Fees : If any action, including arbitration, is brought to enforce this Agreement or to determine the relative rights and obligations ofeitherofthepartiesandarulingisobtainedinfavorofeitherparty,regardlessofwhichpartyinstitutestheaction,theprevailingpartywillbeentitledtoreasonableattorney’sfees.

INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementasofthedayandyearfirstabovewritten.

“COMPANY” “EXECUTIVE”

WD-40COMPANY

By /s/NEALE.SCHMALE /s/GARRYO.RIDGENEALE.SCHMALE,Chairman GARRYO.RIDGE,Executive

By /s/MARIAM.MITCHELLMARIAM.MITCHELL,Secretary

Exhibit 10(q )

CHANGE OF CONTROL SEVERANCE AGREEMENT

THIS AGREEMENT (“Agreement”) is made on this 14 th day ofFebruary, 2006 (the “Effective Date”) between WD-40 COMPANY(hereinafter the“Company”)andMICHAELL.FREEMAN(hereinafterthe“Executive”).

RECITALS:Whereas, the Companyhas determined that the Executive is amongthat groupof keymanagers whoseservices andparticipation in management maybe

criticalinanyperiodoftransition,suchasatthetimeofanychangeincontroloftheCompanyorinthefaceofanyproposedcorporatereorganizationoracquisition,friendlyorhostile,affectingtheCompany.Accordingly,theboardofdirectorsoftheCompany(the“Board”)hasdeterminedthatitisappropriateandinthebestinterestsoftheCompanyanditsstockholdersthatprovisionsbemadetoencouragetheExecutive’scontinuedattentionandundistracteddedicationtotheExecutive’sdutiesinthepotentiallydisturbingcircumstancesofapossiblechangeincontroloftheCompany,byprovidingtheExecutivewithsomedegreeofpersonalfinancialsecurityundersuchcircumstances.

NOWTHEREFORE,thepartiesagreeasfollows:1.ChangeinControl:ForpurposesofthisAgreement,ChangeinControlshallmean:

(a) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities ExchangeActof1934,asamended(the“ExchangeAct”))(a“Person”), ofbeneficial ownership(withinthemeaningofRule13d-3promulgatedundertheExchangeAct)of30%ormoreofeither (i) thethen-outstandingsharesofcommonstockoftheCompany(the“OutstandingCompanyCommonStock”)or(ii) thecombinedvotingpowerofthethen-outstandingvotingsecuritiesoftheCompanyentitledtovotegenerallyintheelectionofdirectors(the“OutstandingCompanyVotingSecurities”);provided,however,thatthefollowingacquisitionsshallnotconstituteaChangeinControl:(A)anyacquisitiondirectlyfromtheCompany(excludinganacquisitionbyvirtueoftheexerciseofaconversionprivilege),(B)anyacquisitionbyanyemployeebenefitplan(orrelatedtrust)sponsoredormaintainedbytheCompanyoranycorporation controlled by the Company or (C) any acquisition by any corporation pursuant to a reorganization, merger or consolidation, if, following suchreorganization,mergerorconsolidation,theconditionsdescribedinsubclauses(i),(ii)and(iii)ofsubparagraph(c)ofthissentencearesatisfied;or

(b) if individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least amajority of theBoard; provided, however, that anyindividual becomingadirector subsequent tothedate hereof whoseelection, or nominationfor electionbytheCompany’s stockholders, was approved by a vote of at least two-thirds of the directors then constituting the Incumbent Board shall be considered as thoughsuchindividualwereamemberoftheIncumbentBoard,butexcluding,forthispurpose,anysuchindividualwhoseinitialassumptionofofficeoccursasaresultofeitheranactualorthreatenedelectioncontestsubjecttoRule14a-11ofRegulation14ApromulgatedundertheExchangeActorotheractualorthreatenedsolicitationofproxiesorconsentsbyoronbehalfofaPersonotherthantheBoard;or

(c) approval by the stockholders of the Company of a reorganization, merger or consolidation, unless following such reorganization,mergerorconsolidation(i)morethan60%of,respectively,thethen-outstandingsharesofcommonstockofthecorporationresultingfromsuchreorganization,mergerorconsolidationandthecombinedvotingpowerofthethenoutstandingvotingsecuritiesofsuchcorporationentitledtovotegenerallyintheelectionofdirectorsisthenbeneficiallyowned,directlyorindirectly,byallorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecuritiesimmediatelypriortosuchreorganization,merger,orconsolidationinsubstantiallythesameproportions as their ownership, immediately prior to such reorganization, merger or consolidation, of the Outstanding Company Common Stock and OutstandingCompanyVotingSecurities, asthecasemaybe(forpurposesofdeterminingwhethersuchpercentagetest is satisfied, thereshall beexcludedfromthenumberofshares and voting securities of the resulting corporation owned by the Company's stockholders, but not from the total number of outstanding shares and votingsecurities of the resulting corporation, anyshares or votingsecurities receivedbyanysuchstockholder in respect of anyconsideration other thanshares or votingsecuritiesoftheCompany);(ii)noPerson(excludingtheCompany,anyemployeebenefitplan(orrelatedtrust)oftheCompany,anyqualifiedemployeebenefitplanofsuchcorporationresultingfromsuchreorganization,mergerorconsolidationandanyPersonbeneficiallyowning,immediatelypriortosuchreorganization,mergerorconsolidation,directlyorindirectly, 20%ormoreoftheOutstandingCompanyCommonStockorOutstandingCompanyVotingSecurities, asthecasemaybe)beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from suchreorganization,mergerorconsolidationorthecombinedvotingpowerofthethen-

outstandingvotingsecurities of suchcorporation entitled to vote generally in the election of directors; and(iii) at least a majority of the members of the board ofdirectors of thecorporationresulting fromsuchreorganization, merger or consolidation weremembers of theIncumbent Boardat thetimeof theexecutionof theinitialagreementprovidingforsuchreorganization,mergerorconsolidation;or

(d) (i) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company or (ii) the first to occurof(A)thesaleorotherdisposition(inonetransactionoraseriesofrelatedtransactions)ofallorsubstantiallyalloftheassetsoftheCompany,or(B)theapprovalbythe stockholders of the Company of any such sale or disposition, other than, in each case, any such sale or disposition to a corporation, with respect to whichimmediatelythereafter,(1)morethan60%of,respectively,thethen-outstandingsharesofcommonstockofsuchcorporationandthecombinedvotingpowerofthethen-outstandingvotingsecuritiesofsuchcorporationentitledtovotegenerallyintheelectionofdirectorsisthenbeneficiallyowned,directlyorindirectly,byallorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecuritiesimmediatelypriortosuchsaleorotherdispositioninsubstantiallythesameproportionastheirownership,immediatelypriortosuchsaleorotherdisposition,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecurities,asthecasemaybe(forpurposesofdeterminingwhethersuchpercentage test is satisfied, there shall be excluded from the number of shares and voting securities of the transferee corporation owned by the Company’sstockholders,butnotfromthetotalnumberofoutstandingsharesandvotingsecuritiesofthetransfereecorporation,anysharesorvotingsecuritiesreceivedbyanysuchstockholderinrespectofanyconsiderationotherthansharesorvotingsecuritiesoftheCompany);(2)noPerson(excludingtheCompany,anyemployeebenefitplan(orrelatedtrust)oftheCompany,anyqualifiedemployeebenefitplanofsuchtransfereecorporationandanyPersonbeneficiallyowning,immediatelypriortosuchsaleorotherdisposition,directlyorindirectly,20%ormoreoftheOutstandingCompanyCommonStockorOutstandingCompanyVotingSecurities,asthecasemaybe)beneficiallyowns,directlyorindirectly,30%ormoreof,respectively,thethen-outstandingsharesofcommonstockofsuchtransfereecorporationandthecombinedvotingpowerofthethen-outstandingvotingsecuritiesofsuchtransfereecorporationentitledtovotegenerallyintheelectionofdirectors;and(3)atleastamajority of the members of the board of directors of suchtransferee corporation were members of the Incumbent Board at the timeof the execution of the initialagreementoractionoftheboardprovidingforsuchsaleorotherdispositionofassetsoftheCompany.

2.TerminationFollowingaChangeinControl:(a)TheExecutiveshallbeentitledtothecompensationprovidedforinParagraph3ifallofthefollowingconditionsaresatisfied:(i)thereisaChangeinControloftheCompanywhiletheExecutiveisstillanemployeeoftheCompany;(ii)theExecutive’semploymentwiththeCompanyisterminatedwithintwoyearsaftertheChangeinControl;and(iii) the Executive's termination of employment is not a result of (A) the Executive's death; (B) the Executive’s Disability (as defined in

subparagraph2(b) below); (C)theExecutive’s Retirement (asdefinedinsubparagraph2(c) below); (D)theExecutive's terminationbytheCompanyfor Cause(asdefined in subparagraph 2(d) below); or (E) the Executive’s decision to terminate employment other than for Good Reason (as defined in subparagraph 2(e)below).Notwithstandingtheforegoing,ifaChangeofControloccursandiftheExecutive'semploymentwiththeCompanyisterminatedpriortothedateonwhichtheChangeofControloccurs,andifitisreasonablydemonstratedbytheExecutivethatsuchterminationofemployment(i)wasattherequestofathirdpartywhohastakenstepsreasonablycalculatedtoeffectaChangeofControlor(ii)otherwisearoseinconnectionwithorinanticipationofaChangeofControl,thentheExecutiveshallbeentitledtothecompensationprovidedforinParagraph3.

(b) If, as a result of the Executive’s incapacity due to physical or mental illness, the Executive shall have been unable, with or withouta reasonable accommodation, to perform the Executive’s duties with the Company on a full time basis for six months and if, within 30 days after a Notice ofTermination(asdefinedinsubparagraph2(f))isthereaftergivenbytheCompany,theExecutiveshallnothavereturnedtothefulltimeperformanceoftheExecutive'sduties,theCompanymayterminatetheExecutive'semploymentfor“Disability”.

(c) The term “Retirement” as used in this Agreement shall mean termination by the Company or the Executive of the Executive’semploymentundercircumstanceswherebytheExecutiveisotherwiseentitledtoreceivebenefitspayableunderthepresentlyexistingSupplementalRetirementBenefitPlanenteredintobetweentheCompanyandtheExecutiveorsuchothernonqualifiedretirementbenefitplanprovidingsubstantiallysimilarbenefits.

(d) The Company may terminate the Executive's employment for Cause before or after a Change in Control. For purposes of thisAgreementonly,“Cause”shallmean:(i)theExecutive’scommissionofactssubjecttoprosecutionasafelonyinvolvingmoralturpitude;(ii)theExecutive’smaterialbreachoffiduciarydutyasanexecutiveofficeroftheCompanywhichhasresulted,orislikelytoresult,inmaterialeconomicdamagetotheCompany;or(iii)theExecutive’swillfulgrossmisconductorwillfulgrossneglectofduties(otherthananysuchneglectresultingfromtheExecutive'sincapacityduetophysicalormentalillnessoranysuchneglectaftertheissuance

of a Notice of Termination by the Executive for Good Reason, as such terms are defined in subparagraphs (e) and (f) below and as they may apply under thisParagraph2);providedthatnoactorfailuretoactbytheExecutivewillconstitute“Cause”underclause(ii)iftheExecutivebelievedingoodfaiththatsuchactorfailuretoactwasinthebestinterestoftheCompany.

AnyterminationoftheExecutive’semploymentbytheCompanyforCauseshallbeauthorizedbyavoteofatleastamajorityoftheindependentmembersofthe Board (as they maybe determined by the Board fromtime to time) within 12 months of a majority of such independent members of the Board having actualknowledgeoftheeventorcircumstancesprovidingabasisforsuchtermination.Inthecaseofclauses(i)and(ii)ofthesecondsentenceofthissubparagraph(d),theExecutive shall be given notice by the Board specifying in detail the particular act or failure to act on which the Board is relying in proposing to terminate theExecutiveforCauseandofferingtheExecutiveanopportunity,onadateatleast14daysafterreceiptofsuchnotice,tohaveahearing,withcounsel,beforeamajorityof the independent members of the Board, including each of the members of the Board who authorized the termination for Cause. The Executive shall not beterminatedforCauseif,within30daysafterthedateoftheExecutive’shearingbeforetheBoard(oriftheExecutivewaivesahearing,within30daysafterreceivingnoticeoftheproposedtermination),theExecutivehascorrectedtheparticularactorfailuretoactspecifiedinthenoticegivenunderclause(ii)ofthesecondsentenceofthissubparagraph(d),andbysocorrectingsuchactorfailuretoacttheExecutivehasreducedtheeconomicdamagetheactorfailuretoacthasallegedlycausedtheCompanytoalevelwhichisnolongermaterialorhaseliminatedtheprobabilitythatsuchactorfailuretoactislikelytoresultinmaterialeconomicdamagetotheCompany. Notermination for Cause shall take effect until the expiration of the correction period described in the preceding sentence and the determination by amajority of the independent members of the Board that the Executive has failed to correct the act or failure to act in accordance with the terms of the precedingsentence.Otherthanasspecifiedherein,thedecisionofamajorityoftheindependentmembersoftheBoardofDirectorswithrespecttoanydeterminationofthegroundsforterminationoftheExecutive’semploymentforCauseshallbebindingabsentevidenceofbadfaithormanifestinjustice.

(e) The Executive may terminate the Executive’s employment for Good Reason at any time following a Change in Control. ForpurposesofthisAgreement,“GoodReason”shallmean,afteranyChangeinControlandwithouttheExecutive’sexpresswrittenconsent,anyofthefollowing:

(i)asignificantdiminutionintheExecutive'sdutiesandresponsibilities,ortheassignmenttotheExecutivebytheCompanyofdutiesinconsistentwiththeExecutive's position, duties, responsibilities orstatuswiththeCompanyimmediatelyprior toaChangeinControloftheCompany,oranyremovaloftheExecutivefromoranyfailuretore-electtheExecutivetoanyofsuchpositions,exceptinconnectionwiththeterminationofemploymentforDisability,RetirementorCauseorasaresultoftheExecutive’sdeathorbytheExecutiveotherthanforGoodReason;

(ii) a reduction by the Company in the Executive’s annual rate of base salary as in effect immediately prior to a Change of Control or theCompany’sfailuretoincrease(within12monthsoftheExecutive’s last adjustment inannual rateofbasesalary) theExecutive's annual rateof basesalaryafter aChangeinControloftheCompanyinanamountwhichatleastequals,onapercentagebasis,theaveragepercentageincreaseintheannualrateofbasesalarymostrecentlyorthencurrentlybeingeffectedforallotherexecutiveofficersoftheCompany;

(iii)(A)anyfailurebytheCompanytocontinueineffectanybenefitplanorarrangement(including,withoutlimitation,medical,dental,andotherestablished benefit plans (“Welfare Benefit Plans”), group life insurance and retirement plans) in which the Executive is participating at the time of a Change inControl of the Company (all hereinafter referred to as “Benefit Plans”) unless the Executive receives benefits through another plan or arrangement providing theExecutivewithbenefits,whenconsideredintheaggregate,thatarenolessfavorablethanthebenefitsunderallBenefitPlansavailabletotheExecutiveatthetimeofaChangeinControl,or(B)thetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive’sparticipationinormateriallyreducetheExecutive’sbenefits undertheBenefit Plansor otherwisedeprivetheExecutiveof anymaterial fringebenefit or perquisite of officeenjoyedbytheExecutiveat thetimeofaChangeinControloftheCompanyconsideredintheaggregatewithallbenefitssoprovidedtotheExecutive;

(iv)(A)anyfailurebytheCompanytocontinueineffectanyincentiveplanorarrangement(including,withoutlimitation,theCompany’sincentivebonusandcontingentbonusarrangementsandcreditsandtherighttoreceiveperformanceawardsandsimilarlongandshort-termincentivecompensationbenefits)inwhichtheExecutiveisparticipatingatthetimeofaChangeinControloftheCompany(hereinafterreferredtoas“IncentivePlans”),(B)thetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive’sparticipationinanysuchIncentivePlanorreducetheExecutive’sbenefitsunderanysuchIncentivePlan,unless in the case of either subclause (A) or (B) above, there is substituted a comparable plan or programthat is economically equivalent, in terms of the benefitofferedtotheExecutive,totheIncentivePlanbeingaltered,reduced,affectedorended,or(C)anyfailurebytheCompanywithrespecttoanyfiscalyeartomakeanawardtotheExecutivepursuanttoeachsuchIncentivePlanorsuchsubstitutedcomparableplanorprograminaccordancewithitstermsorotherwiseinamannerconsistentwithawardsorbenefitsprovidedtootherexecutiveofficersoftheCompany;

(v) (A) any failure by the Company to continue in effect any plan or arrangement to receive securities of the Company (including, withoutlimitation,theCompany'sstockoptionplansandotherequityincentive

plans as authorized by the Board for the senior executive officers) in which the Executive is participating at the time of a Change in Control of the Company(hereinafterreferredtoas“SecuritiesPlans”),orthetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive'sparticipationinormateriallyreducetheExecutive’sbenefitsunderanysuchSecuritiesPlanor(B)anyfailurebytheCompanyinanyfiscalyeartograntstockoptions,stockappreciationrightsorsecuritiesawardstotheExecutivepursuanttosuchSecuritiesPlansorotherwiseinamannerconsistentwithawardsorgrantsprovidedtootherexecutiveofficersofthe Company; and provided further that the material terms and conditions of such stock options, stock appreciation rights, and securities awards granted to theExecutiveaftertheChangeinControl(including,butnotlimitedto,theexerciseprice,vestingschedule,periodandmethodsofexercise,expirationdate,forfeitureprovisionsandotherrestrictions) aresubstantiallysimilar tothematerial termsandconditionsofthestockoptions, stockappreciationrights, andsecuritiesawardsgrantedtotheExecutiveundertheSecuritiesPlansimmediatelypriortotheChangeinControloftheCompany;

(vi)arelocationoftheCompany’sprincipalexecutiveofficestoalocationmorethan100milesoutsideofSanDiego,California,ortheExecutive’srelocationmorethan100milesfromthelocationatwhichtheExecutiveperformedtheExecutive'sdutiespriortoaChangeinControloftheCompany,exceptforrequired travel by the Executive on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations at the time of aChangeinControloftheCompany;

(vii)anyfailurebytheCompanytoprovidetheExecutivewiththenumberofannualpaidvacationdaystowhichtheExecutiveisentitledfortheyearinwhichaChangeinControloftheCompanyoccurs;

(viii)anymaterialbreachbytheCompanyofanyprovisionofthisAgreement;(ix)anyfailurebytheCompanytoobtaintheassumptionofthisAgreementbyanysuccessororassignoftheCompany;(x) theCompanyor its successor nolonger is requiredto haveits commonstockregisteredpursuant to Section12(b) or 12(g) of theSecurities

ExchangeActof1934,asamended;or(xi)anypurportedterminationoftheExecutive’semploymentbytheCompanypursuanttosubparagraphs2(b),2(c)or2(d)whichisnoteffected

pursuant to a Noticeof Terminationsatisfyingtherequirements of subparagraph2(f) below(and, if applicable, subparagraph2(d) above), andfor purposes of thisAgreement,nosuchpurportedterminationshallbeeffective.

Forpurposesofthissubparagraph(e),anisolated,immaterial,andinadvertentactionnottakeninbadfaithbytheCompanyinviolationofclauses(i)-(v),(vii)or(xi)ofthissubparagraphthatisremediedbytheCompanypromptlyafterreceiptofnoticethereofgivenbytheExecutiveshallnotbeconsideredGoodReason for the Executive’s termination of employment with the Company. In the event the Executive terminates the Executive’s employment for Good Reasonhereunder,thennotwithstandingthattheExecutivemayalsobeconsideredretiredforpurposesofBenefitPlans(otherthantheSupplementalRetirementBenefitPlanorothernon-qualifiedplanprovidingsimilarbenefits),IncentivePlansorSecuritiesPlans,theExecutiveshallbedeemedtohaveterminatedemploymentforGoodReasonforpurposesofthisAgreement.

(f) Any termination of the Executive’s employment by the Company pursuant to subparagraphs 2(b), 2(c) or 2(d), or by the Executivepursuant to subparagraph 2(e) above, shall be communicated by a Notice of Termination to the other party hereof. For purposes of this Agreement, a “Notice ofTermination”shallmeanawrittennoticewhichshallindicatethosespecificterminationprovisionsinthisAgreementrelieduponandwhichsetsforthinreasonabledetail thefactsandcircumstancesclaimedtoprovideabasisforterminationoftheExecutive’semploymentundertheprovisionsoindicated. ForpurposesofthisAgreement,nosuchpurportedterminationbytheCompanyshallbeeffectivewithoutsuchNoticeofTermination.

(g) “Date of Termination” shall mean (i) if the Executive’s employment is terminated by the Company for Disability, 30 days afterNoticeofTerminationisgiventotheExecutive(providedthattheExecutiveshallnothavereturnedtotheperformanceoftheExecutive’sdutiesonafulltimebasisduringsuch30dayperiod),(ii)iftheExecutive’semploymentisterminatedbytheExecutiveforGoodReason,thedatespecifiedintheNoticeofTermination,and(iii)iftheExecutive’semploymentisterminatedbytheCompanyforanyotherreason,thedateonwhichaNoticeofTerminationisgiven;provided,however,thatifwithin30daysafteranyNoticeofTerminationisgiventotheExecutivebytheCompany,theExecutivenotifiestheCompanythatadisputeexistsconcerningthetermination, theDateofTerminationshall beadatenoearlier thanthedateonwhichtheNoticeofTerminationisgiven,butotherwise, if theterminationistobeeffective,asofthedatesodetermined,whetherbymutualwrittenagreementofthepartiesoruponfinaljudgment,orderordecreeofacourtofcompetentjurisdiction.

3.SeveranceCompensationUponTerminationofEmploymentFollowingaChangeinControl:(a) If, pursuant to subparagraph 2(a), the Executive is entitled to the compensation provided for in this Paragraph 3, then, subject to

theprovisionsofParagraph7below,theCompanyshallpaytotheExecutiveinalumpsumcashpayment,thefollowing:(i)theChangeinControlSeveranceAmountasdefinedinsubparagraph3(b)belowwithinfivedaysfollowing,butnotearlierthan,thesixthmonth

anniversaryoftheDateofTermination;plus(ii)theExecutive’searnedbutunpaidbaseannualsalarythroughtheperiodendingontheDateofTerminationwithinthetimerequiredbylawfor

thepaymentofwagesuponterminationofemployment;plus

(iii) interest, if any, ontheamounts payable pursuant toclauses (i) and(ii) abovecalculatedfromtheDateof Terminationuntil paid(includinginterestcalculatedforthesixmonthperiodfromtheDateofTerminationtothedateofpaymentpursuanttoclause(i)orfromtheDateofTerminationtothedateofpaymentpursuanttoclause(ii)ifnotpaidwhendue)atarateequaltotheprimerateaspublishedintheWallStreetJournalontheDateofTerminationplusthreepercentagepoints,compoundedannually.

(b) “Change in Control Severance Amount” shall mean an amount equal to the sum of (i) two times the greater of (A) the Executive’sbaseannualsalaryineffectasoftheDateofTerminationor(B)theaverageoftheExecutive’sbaseannualsalarypaidforthefivefiscalyearsendingpriortotheDateofTermination,plus(ii)twotimesthegreaterof(A)theannualcashbonusawardedbytheBoardtotheExecutivewithrespecttotheCompany'smostrecentfiscalyear ending prior to the Date of Termination or (B) the average of the annual cash bonus amounts awarded by the Board to the Executive with respect to theCompany'smostrecentfivefiscalyearsendingpriortotheDateofTermination.

(c) If, pursuant to subparagraph 2(a), the Executive is entitled to the compensation provided in this Paragraph 3, then the ExecutivewillbeentitledtocontinuedparticipationinallWelfareBenefitPlans(asdefinedinsubparagraph2(e)(iii)above)inwhichtheExecutivewasparticipatingontheDateofTermination,suchcontinuedparticipationtobeatCompanycostandotherwiseonthesamebasisasCompanyemployeesgenerally,untiltheearlierof(i)thedate,or dates, the Executive receives equivalent coverage and benefits under the plans and programs of a subsequent employer (such coverages and benefits to bedeterminedonacoverage-by-coverageorbenefit-by-benefit basis)or(ii) twoyearsfromtheDateofTermination; provided(A)if theExecutiveisprecludedfromcontinuingparticipationinanyWelfareBenefitPlanasprovidedinthissentence,theExecutiveshallbepaid,inalumpsumcashpayment,within30daysfollowingthedateitisdeterminedtheExecutiveisunabletoparticipateinanyWelfareBenefitPlan,theafter-taxeconomicequivalentofthebenefitsprovidedundertheplanorprograminwhichtheExecutiveis unable toparticipate for theperiodspecifiedinthis sentence, and(B)theeconomicequivalent of anybenefit foregoneshall bedeemedtobethelowestcostthatwouldbeincurredbytheExecutiveinobtainingsuchbenefit(includingfamilyordependentcoverage,ifapplicable)onanindividualbasis.TheExecutiveshallbeeligibleforgrouphealthplancontinuationcoverageunderandinaccordancewiththeConsolidatedOmnibusBudgetReconciliationActof1985,asamended,whentheExecutiveceasestobeeligibleforcontinuedparticipationintheCompany'sgrouphealthplanunderthissubparagraph(c).

4. Company Right to Terminate Employment With or Without Cause; No Obligation of Executive to Mitigate Damages; No Effect On OtherContractualRights:

(a) Notwithstanding anything to the contrary herein, the Executive shall serve the Company at the pleasure of the Board and theBoardmayterminate the Executive’s employment at anytime, with our without Cause subject to the Executive’s right to payment of the severance compensationprovided for herein, if applicable. The Executive hereby acknowledges that this agreement does not guarantee continued employment with the Company for anyperiodoftimeanduponterminationoftheExecutive’semployment,theExecutiveshallhavenoclaimforcompensationorotherbenefitspursuanttothisagreementexceptasspecificallysetforthhereinfollowingaChangeofControl.

(b) The Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement byseeking other employment or otherwise, nor shall the amount of any payment provided for under this Agreement be reduced by any compensation earned by theExecutiveastheresultofemploymentbyanotheremployeraftertheDateofTerminationorotherwise.

(c) The provisions of this Agreement, and any payment provided for hereunder, shall not reduce any amounts otherwise payable, orinanywaydiminishtheExecutive’sexistingrights,orrightswhichwouldaccruesolelyasaresultofthepassageoftime,underanyBenefitPlan,IncentivePlanorSecuritiesPlan,orothercontract,planoragreementwithoroftheCompany.

5.Options,SecuritiesAwards,AndIncentiveAwards:(a) In the event of a Change in Control of the Company, then notwithstanding the terms and conditions of any Securities Plan or other

plan,agreementorarrangement,(i)ifanySecuritiesPlanwillnotbecontinuedastothesecuritiesoftheCompanyorastosubstantiallyequivalentpubliclytradedsecuritiesoftheCompanyoranysuccessorentity,or(ii)iftheExecutive’semploymentisterminatedandtheExecutiveisentitledtothecompensationprovidedforinParagraph3,thentheCompanyagreestoaccelerate,vest,andmakeimmediatelyexercisableinfullallunexercisableinstallmentsofalloptionstoacquiresecuritiesoftheCompany,tovestall unvestedawardsofsecuritiesoftheCompanyandtowaiveanyresaleorotherrestrictionsorrightsofrepurchaseapplicabletosecuritiesunderlyingsuchoptionsorapplicabletoawardsofsecuritiesoftheCompanyineachcase,whichareheldbytheExecutiveonthedateofsuchChangeinControl,includingwithoutlimitationanyoptionsorsecuritiesobtainedbytheExecutivepursuanttoanySecuritiesPlanorsecuritiesobtainedbytheExecutivepursuanttoanydiscontinuedIncentivePlan(asdefinedinsubparagraph2(e))totheextentthattheExecutivemaynototherwisebeabletorealizetheexpectedbenefitsthereofuponcontinuedemploymentbytheCompanyorapubliclytradedsuccessorentity.

(b) If the provisions of subparagraph (a) of this Paragraph 5 are applicable with respect to any Securities Plan within six (6) monthsfollowingaChangeinControl,anyoptionsorsecuritiesobtainedbytheExecutivepursuanttothediscontinuedSecuritiesPlanorsecuritiesobtainedbytheExecutivepursuanttoanyIncentivePlanasdescribedinsubparagraph(a)shallhavealimitedrightofsurrenderallowingtheExecutivetosurrendersuchoptionsorsecuritieswithinthe30dayperiodfollowingthedateonwhichtheprovisionsofsubparagraph(a)firstbecomeapplicableandtoreceiveacashpaymentinexchangeforthesurrenderofsuchoptionsorsecurities.Theamountofsuchpaymentshallbeequaltothesumof(i)theproductofthenumberofsecuritiesobtainedbytheExecutivepursuanttosuchSecuritiesPlanorIncentivePlanmultipliedbythegreaterof(x)thefairmarketvalueofthesecuritiesoftheCompanyonthedatepriortotheChangeinControlor(y)thepersharepricepaidtoshareholdersinconnectionwithsuchChangeinControl(alternatively,the“SecuritiesPrice”)and(ii)theproductof(a)thenumber of securities coveredbyoptions multiplied by(b) the positive amount, if any, equal to the Securities Price minusthe exercise price. Notwithstandingtheforegoing,ifanysuchpaymentwouldresultinliabilityunderSection16oftheExchangeAct,therightofsurrendershallcommenceupontheearliestdateitcanbeexercisedbytheExecutivewithoutliabilityandcontinueforthirtydaysthereafter.

6. Termination : This Agreement shall continue in effect for a period of two (2) years and shall automatically renew for successive two (2) yearperiodsfromtheearlierof(a)thenextscheduledterminationdate,unlesstheBoardprovidestheExecutivewithanoticeofnon-renewalatleast6monthsbeforethenextscheduledterminationdate,or(b)theeffectivedateofaChangeofControl.

7. Adjustment Related to Application of Excise Tax : If the Executive is entitled to receive the compensation provided for in Paragraph 3 and anypaymentreceivedortobereceivedbytheExecutiveisorwillbesubjecttothetax(the“ExciseTax”)imposedbySection4999oftheInternalRevenueCodeof1986,asamended(the“Code”),theadjustmentsetforthinsubparagraph(a)shallbemadetothepaymentsprovidedforinParagraph3above.

(a) If the present value of all benefits and payments to the Executive included in the determination of “parachute payments” pursuanttoSection280G(b)(2)oftheCodereceivedbyortobereceivedbytheExecutive(the“ParachutePayments”)isequaltoorexceeds3timesthe“baseamount”withrespect to the Executive as determined pursuant to Section 280G(b)(3) of the Code (the “Base Amount”), then the amount payable to the Executive pursuant toParagraph3aboveshallbereducedsothatthepresentvalueoftheParachutePaymentsisequalto3timestheBaseAmountminusthesumofOneHundredDollars($100.00.)

(b) It is the intention of the parties to this Agreement that the compensation payable to the Executive pursuant to this AgreementcontingentuponaChangeofControloftheCompanywillnotresultinany“excessparachutepayment”totheExecutiveasdeterminedunderSection280G(b)oftheCode or application of the Excise Tax to any such excess parachute payment. The provisions of this Paragraph 7 shall be applied so as to carry out the parties’intentionwithrespecttosuchtaxtreatment.EachpartyagreestotakesuchactionasmaybenecessaryorappropriatetocarryouttheprovisionsofthisParagraph7andto cooperate with the other as to all required determinations, includingthe payment or return of anypayment determined to bedueto the Executive or to theCompany,respectively.TheCompanyshallpayallcostsofaccountingtoassurecompliancewiththeintentofthisParagraph7.

8. Successors : The Company will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to allor substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to the Executive, expressly, absolutely andunconditionallytoassumeandagreetoperformthisAgreementinthesamemannerandtothesameextentthattheCompanywouldberequiredtoperformitifnosuchsuccessionorassignmenthadtakenplace.AnyfailureoftheCompanytoobtainsuchagreementpriortotheeffectivenessofanysuchsuccessionorassignmentshallbeamaterialbreachofthisAgreementandshallentitletheExecutivetoterminatetheExecutive’semploymentforGoodReasonandreceivethecompensationprovided for in Paragraph 3 above. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor or assign to itsbusinessand/orassetsasaforesaidwhichexecutesanddeliverstheagreementprovidedforinthisParagraph8orwhichotherwisebecomesboundbyallthetermsandprovisionsofthisAgreementbyoperationoflaw.

9. Survivorship : The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extentnecessarytotheintendedpreservationofsuchrightsandobligationsandtotheextentthatanyperformanceisrequiredfollowingterminationofthisAgreement.

10. Notices : Any notice, request, demand or other communication required or permitted hereunder shall be deemed to be properly given whenpersonally served in writing, when deposited in the United States mail, postage prepaid, or when communicated to a public telegraph company for transmittal,addressedtotheCompanyatitsheadofficelocationortheExecutiveattheExecutive’slastknownaddress.Eitherpartymaychangeitsaddressbywrittennoticeinaccordancewiththisparagraph.

11. Benefit of Agreement : This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal and legal representatives,executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while any amounts are still payable to the Executivehereunder,allsuchamounts,unlessotherwiseprovidedherein,shallbepaidinaccordancewiththetermsofthisAgreementtotheExecutive'sdevisee,legateeorotherdesigneeor,iftherebenosuchdesignee,totheExecutive’sestate.

12. Applicable Law : Except to the extent governed by the laws of the United States, this Agreement is to be governed by and construed under thelawsoftheStateofCalifornia.

13. Captions and Paragraph Headings : Captions and paragraph headings used herein are for convenience only and are not a part of this AgreementandshallnotbeusedintheinterpretationofthisAgreement.

14. Invalid Provisions : Should any provision of this Agreement for any reason be declared invalid, void or unenforceable by a court of competentjurisdiction,thevalidityandbindingeffectofanyremainingportionshallnotbeaffected,andtheremainingportionsofthisAgreementshallremaininfullforceandeffectasifthisAgreementhadbeenexecutedwithsaidprovisioneliminated.

15. Entire Agreement : This Agreement contains the entire agreement of the parties. It supersedes any and all other agreements, either oral or inwriting,betweenthepartiesheretowithrespecttothematterscoveredherein.andspecifically,theEmploymentAgreementbetweentheCompanyandtheExecutivedated9thdayofJuly,2001isterminatedasoftheEffectiveDateofthisAgreement.EachpartytothisAgreementacknowledgesthatnorepresentations,inducements,promises,oragreements,oralorotherwise,havebeenmadebyanyparty,oranyoneactingonbehalfofanyparty,whicharenotembodiedherein,andthatnootheragreement,statement,orpromiserelatingtothematterscoveredhereinandnotcontainedinthisAgreementshallbevalidorbinding.ThisAgreementmaynotbemodifiedoramendedbyoralagreement,butonlybyanyagreementinwritingsignedbytheCompanyandtheExecutive.

16. Attorney’s Fees : If any action, including arbitration, is brought to enforce this Agreement or to determine the relative rights and obligations ofeitherofthepartiesandarulingisobtainedinfavorofeitherparty,regardlessofwhichpartyinstitutestheaction,theprevailingpartywillbeentitledtoreasonableattorney’sfees.

INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementasofthedayandyearfirstabovewritten.

“COMPANY” “EXECUTIVE”

WD-40COMPANY

By /s/GARRYO.RIDGE /s/MICHAELL.FREEMANGARRYO.RIDGE,President&CEO MICHAELL.FREEMAN,Executive

By /s/MARIAM.MITCHELLMARIAM.MITCHELL,Secretary

Exhibit 10(r )

CHANGE OF CONTROL SEVERANCE AGREEMENT

THIS AGREEMENT (“Agreement”) is made on this 14 th day ofFebruary, 2006 (the “Effective Date”) between WD-40 COMPANY(hereinafter the“Company”)andGEOFFJ.HOLDSWORTH(hereinafterthe“Executive”).

RECITALS:Whereas, the Companyhas determined that the Executive is amongthat groupof keymanagers whoseservices andparticipation in management maybe

criticalinanyperiodoftransition,suchasatthetimeofanychangeincontroloftheCompanyorinthefaceofanyproposedcorporatereorganizationoracquisition,friendlyorhostile,affectingtheCompany.Accordingly,theboardofdirectorsoftheCompany(the“Board”)hasdeterminedthatitisappropriateandinthebestinterestsoftheCompanyanditsstockholdersthatprovisionsbemadetoencouragetheExecutive’scontinuedattentionandundistracteddedicationtotheExecutive’sdutiesinthepotentiallydisturbingcircumstancesofapossiblechangeincontroloftheCompany,byprovidingtheExecutivewithsomedegreeofpersonalfinancialsecurityundersuchcircumstances.

NOWTHEREFORE,thepartiesagreeasfollows:1.ChangeinControl:ForpurposesofthisAgreement,ChangeinControlshallmean:

(a) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities ExchangeActof1934,asamended(the“ExchangeAct”))(a“Person”), ofbeneficial ownership(withinthemeaningofRule13d-3promulgatedundertheExchangeAct)of30%ormoreofeither (i) thethen-outstandingsharesofcommonstockoftheCompany(the“OutstandingCompanyCommonStock”)or(ii) thecombinedvotingpowerofthethen-outstandingvotingsecuritiesoftheCompanyentitledtovotegenerallyintheelectionofdirectors(the“OutstandingCompanyVotingSecurities”);provided,however,thatthefollowingacquisitionsshallnotconstituteaChangeinControl:(A)anyacquisitiondirectlyfromtheCompany(excludinganacquisitionbyvirtueoftheexerciseofaconversionprivilege),(B)anyacquisitionbyanyemployeebenefitplan(orrelatedtrust)sponsoredormaintainedbytheCompanyoranycorporation controlled by the Company or (C) any acquisition by any corporation pursuant to a reorganization, merger or consolidation, if, following suchreorganization,mergerorconsolidation,theconditionsdescribedinsubclauses(i),(ii)and(iii)ofsubparagraph(c)ofthissentencearesatisfied;or

(b) if individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least amajority of theBoard; provided, however, that anyindividual becomingadirector subsequent tothedate hereof whoseelection, or nominationfor electionbytheCompany’s stockholders, was approved by a vote of at least two-thirds of the directors then constituting the Incumbent Board shall be considered as thoughsuchindividualwereamemberoftheIncumbentBoard,butexcluding,forthispurpose,anysuchindividualwhoseinitialassumptionofofficeoccursasaresultofeitheranactualorthreatenedelectioncontestsubjecttoRule14a-11ofRegulation14ApromulgatedundertheExchangeActorotheractualorthreatenedsolicitationofproxiesorconsentsbyoronbehalfofaPersonotherthantheBoard;or

(c) approval by the stockholders of the Company of a reorganization, merger or consolidation, unless following such reorganization,mergerorconsolidation(i)morethan60%of,respectively,thethen-outstandingsharesofcommonstockofthecorporationresultingfromsuchreorganization,mergerorconsolidationandthecombinedvotingpowerofthethenoutstandingvotingsecuritiesofsuchcorporationentitledtovotegenerallyintheelectionofdirectorsisthenbeneficiallyowned,directlyorindirectly,byallorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecuritiesimmediatelypriortosuchreorganization,merger,orconsolidationinsubstantiallythesameproportions as their ownership, immediately prior to such reorganization, merger or consolidation, of the Outstanding Company Common Stock and OutstandingCompanyVotingSecurities, asthecasemaybe(forpurposesofdeterminingwhethersuchpercentagetest is satisfied, thereshall beexcludedfromthenumberofshares and voting securities of the resulting corporation owned by the Company's stockholders, but not from the total number of outstanding shares and votingsecurities of the resulting corporation, anyshares or votingsecurities receivedbyanysuchstockholder in respect of anyconsideration other thanshares or votingsecuritiesoftheCompany);(ii)noPerson(excludingtheCompany,anyemployeebenefitplan(orrelatedtrust)oftheCompany,anyqualifiedemployeebenefitplanofsuchcorporationresultingfromsuchreorganization,mergerorconsolidationandanyPersonbeneficiallyowning,immediatelypriortosuchreorganization,mergerorconsolidation,directlyorindirectly, 20%ormoreoftheOutstandingCompanyCommonStockorOutstandingCompanyVotingSecurities, asthecasemaybe)beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from suchreorganization,mergerorconsolidationorthecombinedvotingpowerofthethen-

outstandingvotingsecurities of suchcorporation entitled to vote generally in the election of directors; and(iii) at least a majority of the members of the board ofdirectors of thecorporationresulting fromsuchreorganization, merger or consolidation weremembers of theIncumbent Boardat thetimeof theexecutionof theinitialagreementprovidingforsuchreorganization,mergerorconsolidation;or

(d) (i) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company or (ii) the first to occurof(A)thesaleorotherdisposition(inonetransactionoraseriesofrelatedtransactions)ofallorsubstantiallyalloftheassetsoftheCompany,or(B)theapprovalbythe stockholders of the Company of any such sale or disposition, other than, in each case, any such sale or disposition to a corporation, with respect to whichimmediatelythereafter,(1)morethan60%of,respectively,thethen-outstandingsharesofcommonstockofsuchcorporationandthecombinedvotingpowerofthethen-outstandingvotingsecuritiesofsuchcorporationentitledtovotegenerallyintheelectionofdirectorsisthenbeneficiallyowned,directlyorindirectly,byallorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecuritiesimmediatelypriortosuchsaleorotherdispositioninsubstantiallythesameproportionastheirownership,immediatelypriortosuchsaleorotherdisposition,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecurities,asthecasemaybe(forpurposesofdeterminingwhethersuchpercentage test is satisfied, there shall be excluded from the number of shares and voting securities of the transferee corporation owned by the Company’sstockholders,butnotfromthetotalnumberofoutstandingsharesandvotingsecuritiesofthetransfereecorporation,anysharesorvotingsecuritiesreceivedbyanysuchstockholderinrespectofanyconsiderationotherthansharesorvotingsecuritiesoftheCompany);(2)noPerson(excludingtheCompany,anyemployeebenefitplan(orrelatedtrust)oftheCompany,anyqualifiedemployeebenefitplanofsuchtransfereecorporationandanyPersonbeneficiallyowning,immediatelypriortosuchsaleorotherdisposition,directlyorindirectly,20%ormoreoftheOutstandingCompanyCommonStockorOutstandingCompanyVotingSecurities,asthecasemaybe)beneficiallyowns,directlyorindirectly,30%ormoreof,respectively,thethen-outstandingsharesofcommonstockofsuchtransfereecorporationandthecombinedvotingpowerofthethen-outstandingvotingsecuritiesofsuchtransfereecorporationentitledtovotegenerallyintheelectionofdirectors;and(3)atleastamajority of the members of the board of directors of suchtransferee corporation were members of the Incumbent Board at the timeof the execution of the initialagreementoractionoftheboardprovidingforsuchsaleorotherdispositionofassetsoftheCompany.

2.TerminationFollowingaChangeinControl:(a)TheExecutiveshallbeentitledtothecompensationprovidedforinParagraph3ifallofthefollowingconditionsaresatisfied:(i)thereisaChangeinControloftheCompanywhiletheExecutiveisstillanemployeeoftheCompany;(ii)theExecutive’semploymentwiththeCompanyisterminatedwithintwoyearsaftertheChangeinControl;and(iii) the Executive's termination of employment is not a result of (A) the Executive's death; (B) the Executive’s Disability (as defined in

subparagraph2(b) below); (C)theExecutive’s Retirement (asdefinedinsubparagraph2(c) below); (D)theExecutive's terminationbytheCompanyfor Cause(asdefined in subparagraph 2(d) below); or (E) the Executive’s decision to terminate employment other than for Good Reason (as defined in subparagraph 2(e)below).Notwithstandingtheforegoing,ifaChangeofControloccursandiftheExecutive'semploymentwiththeCompanyisterminatedpriortothedateonwhichtheChangeofControloccurs,andifitisreasonablydemonstratedbytheExecutivethatsuchterminationofemployment(i)wasattherequestofathirdpartywhohastakenstepsreasonablycalculatedtoeffectaChangeofControlor(ii)otherwisearoseinconnectionwithorinanticipationofaChangeofControl,thentheExecutiveshallbeentitledtothecompensationprovidedforinParagraph3.

(b) If, as a result of the Executive’s incapacity due to physical or mental illness, the Executive shall have been unable, with or withouta reasonable accommodation, to perform the Executive’s duties with the Company on a full time basis for six months and if, within 30 days after a Notice ofTermination(asdefinedinsubparagraph2(f))isthereaftergivenbytheCompany,theExecutiveshallnothavereturnedtothefulltimeperformanceoftheExecutive'sduties,theCompanymayterminatetheExecutive'semploymentfor“Disability”.

(c) The term “Retirement” as used in this Agreement shall mean termination by the Company or the Executive of the Executive’semploymentundercircumstanceswherebytheExecutiveisotherwiseentitledtoreceivebenefitspayableunderthepresentlyexistingSupplementalRetirementBenefitPlanenteredintobetweentheCompanyandtheExecutiveorsuchothernonqualifiedretirementbenefitplanprovidingsubstantiallysimilarbenefits.

(d) The Company may terminate the Executive's employment for Cause before or after a Change in Control. For purposes of thisAgreementonly,“Cause”shallmean:(i)theExecutive’scommissionofactssubjecttoprosecutionasafelonyinvolvingmoralturpitude;(ii)theExecutive’smaterialbreachoffiduciarydutyasanexecutiveofficeroftheCompanywhichhasresulted,orislikelytoresult,inmaterialeconomicdamagetotheCompany;or(iii)theExecutive’swillfulgrossmisconductorwillfulgrossneglectofduties(otherthananysuchneglectresultingfromtheExecutive'sincapacityduetophysicalormentalillnessoranysuchneglectaftertheissuance

of a Notice of Termination by the Executive for Good Reason, as such terms are defined in subparagraphs (e) and (f) below and as they may apply under thisParagraph2);providedthatnoactorfailuretoactbytheExecutivewillconstitute“Cause”underclause(ii)iftheExecutivebelievedingoodfaiththatsuchactorfailuretoactwasinthebestinterestoftheCompany.

AnyterminationoftheExecutive’semploymentbytheCompanyforCauseshallbeauthorizedbyavoteofatleastamajorityoftheindependentmembersofthe Board (as they maybe determined by the Board fromtime to time) within 12 months of a majority of such independent members of the Board having actualknowledgeoftheeventorcircumstancesprovidingabasisforsuchtermination.Inthecaseofclauses(i)and(ii)ofthesecondsentenceofthissubparagraph(d),theExecutive shall be given notice by the Board specifying in detail the particular act or failure to act on which the Board is relying in proposing to terminate theExecutiveforCauseandofferingtheExecutiveanopportunity,onadateatleast14daysafterreceiptofsuchnotice,tohaveahearing,withcounsel,beforeamajorityof the independent members of the Board, including each of the members of the Board who authorized the termination for Cause. The Executive shall not beterminatedforCauseif,within30daysafterthedateoftheExecutive’shearingbeforetheBoard(oriftheExecutivewaivesahearing,within30daysafterreceivingnoticeoftheproposedtermination),theExecutivehascorrectedtheparticularactorfailuretoactspecifiedinthenoticegivenunderclause(ii)ofthesecondsentenceofthissubparagraph(d),andbysocorrectingsuchactorfailuretoacttheExecutivehasreducedtheeconomicdamagetheactorfailuretoacthasallegedlycausedtheCompanytoalevelwhichisnolongermaterialorhaseliminatedtheprobabilitythatsuchactorfailuretoactislikelytoresultinmaterialeconomicdamagetotheCompany. Notermination for Cause shall take effect until the expiration of the correction period described in the preceding sentence and the determination by amajority of the independent members of the Board that the Executive has failed to correct the act or failure to act in accordance with the terms of the precedingsentence.Otherthanasspecifiedherein,thedecisionofamajorityoftheindependentmembersoftheBoardofDirectorswithrespecttoanydeterminationofthegroundsforterminationoftheExecutive’semploymentforCauseshallbebindingabsentevidenceofbadfaithormanifestinjustice.

(e) The Executive may terminate the Executive’s employment for Good Reason at any time following a Change in Control. ForpurposesofthisAgreement,“GoodReason”shallmean,afteranyChangeinControlandwithouttheExecutive’sexpresswrittenconsent,anyofthefollowing:

(i)asignificantdiminutionintheExecutive'sdutiesandresponsibilities,ortheassignmenttotheExecutivebytheCompanyofdutiesinconsistentwiththeExecutive's position, duties, responsibilities orstatuswiththeCompanyimmediatelyprior toaChangeinControloftheCompany,oranyremovaloftheExecutivefromoranyfailuretore-electtheExecutivetoanyofsuchpositions,exceptinconnectionwiththeterminationofemploymentforDisability,RetirementorCauseorasaresultoftheExecutive’sdeathorbytheExecutiveotherthanforGoodReason;

(ii) a reduction by the Company in the Executive’s annual rate of base salary as in effect immediately prior to a Change of Control or theCompany’sfailuretoincrease(within12monthsoftheExecutive’s last adjustment inannual rateofbasesalary) theExecutive's annual rateof basesalaryafter aChangeinControloftheCompanyinanamountwhichatleastequals,onapercentagebasis,theaveragepercentageincreaseintheannualrateofbasesalarymostrecentlyorthencurrentlybeingeffectedforallotherexecutiveofficersoftheCompany;

(iii)(A)anyfailurebytheCompanytocontinueineffectanybenefitplanorarrangement(including,withoutlimitation,medical,dental,andotherestablished benefit plans (“Welfare Benefit Plans”), group life insurance and retirement plans) in which the Executive is participating at the time of a Change inControl of the Company (all hereinafter referred to as “Benefit Plans”) unless the Executive receives benefits through another plan or arrangement providing theExecutivewithbenefits,whenconsideredintheaggregate,thatarenolessfavorablethanthebenefitsunderallBenefitPlansavailabletotheExecutiveatthetimeofaChangeinControl,or(B)thetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive’sparticipationinormateriallyreducetheExecutive’sbenefits undertheBenefit Plansor otherwisedeprivetheExecutiveof anymaterial fringebenefit or perquisite of officeenjoyedbytheExecutiveat thetimeofaChangeinControloftheCompanyconsideredintheaggregatewithallbenefitssoprovidedtotheExecutive;

(iv)(A)anyfailurebytheCompanytocontinueineffectanyincentiveplanorarrangement(including,withoutlimitation,theCompany’sincentivebonusandcontingentbonusarrangementsandcreditsandtherighttoreceiveperformanceawardsandsimilarlongandshort-termincentivecompensationbenefits)inwhichtheExecutiveisparticipatingatthetimeofaChangeinControloftheCompany(hereinafterreferredtoas“IncentivePlans”),(B)thetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive’sparticipationinanysuchIncentivePlanorreducetheExecutive’sbenefitsunderanysuchIncentivePlan,unless in the case of either subclause (A) or (B) above, there is substituted a comparable plan or programthat is economically equivalent, in terms of the benefitofferedtotheExecutive,totheIncentivePlanbeingaltered,reduced,affectedorended,or(C)anyfailurebytheCompanywithrespecttoanyfiscalyeartomakeanawardtotheExecutivepursuanttoeachsuchIncentivePlanorsuchsubstitutedcomparableplanorprograminaccordancewithitstermsorotherwiseinamannerconsistentwithawardsorbenefitsprovidedtootherexecutiveofficersoftheCompany;

(v) (A) any failure by the Company to continue in effect any plan or arrangement to receive securities of the Company (including, withoutlimitation,theCompany'sstockoptionplansandotherequityincentive

plans as authorized by the Board for the senior executive officers) in which the Executive is participating at the time of a Change in Control of the Company(hereinafterreferredtoas“SecuritiesPlans”),orthetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive'sparticipationinormateriallyreducetheExecutive’sbenefitsunderanysuchSecuritiesPlanor(B)anyfailurebytheCompanyinanyfiscalyeartograntstockoptions,stockappreciationrightsorsecuritiesawardstotheExecutivepursuanttosuchSecuritiesPlansorotherwiseinamannerconsistentwithawardsorgrantsprovidedtootherexecutiveofficersofthe Company; and provided further that the material terms and conditions of such stock options, stock appreciation rights, and securities awards granted to theExecutiveaftertheChangeinControl(including,butnotlimitedto,theexerciseprice,vestingschedule,periodandmethodsofexercise,expirationdate,forfeitureprovisionsandotherrestrictions) aresubstantiallysimilar tothematerial termsandconditionsofthestockoptions, stockappreciationrights, andsecuritiesawardsgrantedtotheExecutiveundertheSecuritiesPlansimmediatelypriortotheChangeinControloftheCompany;

(vi)arelocationoftheCompany’sprincipalexecutiveofficestoalocationmorethan100milesoutsideofSanDiego,California,ortheExecutive’srelocationmorethan100milesfromthelocationatwhichtheExecutiveperformedtheExecutive'sdutiespriortoaChangeinControloftheCompany,exceptforrequired travel by the Executive on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations at the time of aChangeinControloftheCompany;

(vii)anyfailurebytheCompanytoprovidetheExecutivewiththenumberofannualpaidvacationdaystowhichtheExecutiveisentitledfortheyearinwhichaChangeinControloftheCompanyoccurs;

(viii)anymaterialbreachbytheCompanyofanyprovisionofthisAgreement;(ix)anyfailurebytheCompanytoobtaintheassumptionofthisAgreementbyanysuccessororassignoftheCompany;(x) theCompanyor its successor nolonger is requiredto haveits commonstockregisteredpursuant to Section12(b) or 12(g) of theSecurities

ExchangeActof1934,asamended;or(xi)anypurportedterminationoftheExecutive’semploymentbytheCompanypursuanttosubparagraphs2(b),2(c)or2(d)whichisnoteffected

pursuant to a Noticeof Terminationsatisfyingtherequirements of subparagraph2(f) below(and, if applicable, subparagraph2(d) above), andfor purposes of thisAgreement,nosuchpurportedterminationshallbeeffective.

Forpurposesofthissubparagraph(e),anisolated,immaterial,andinadvertentactionnottakeninbadfaithbytheCompanyinviolationofclauses(i)-(v),(vii)or(xi)ofthissubparagraphthatisremediedbytheCompanypromptlyafterreceiptofnoticethereofgivenbytheExecutiveshallnotbeconsideredGoodReason for the Executive’s termination of employment with the Company. In the event the Executive terminates the Executive’s employment for Good Reasonhereunder,thennotwithstandingthattheExecutivemayalsobeconsideredretiredforpurposesofBenefitPlans(otherthantheSupplementalRetirementBenefitPlanorothernon-qualifiedplanprovidingsimilarbenefits),IncentivePlansorSecuritiesPlans,theExecutiveshallbedeemedtohaveterminatedemploymentforGoodReasonforpurposesofthisAgreement.

(f) Any termination of the Executive’s employment by the Company pursuant to subparagraphs 2(b), 2(c) or 2(d), or by the Executivepursuant to subparagraph 2(e) above, shall be communicated by a Notice of Termination to the other party hereof. For purposes of this Agreement, a “Notice ofTermination”shallmeanawrittennoticewhichshallindicatethosespecificterminationprovisionsinthisAgreementrelieduponandwhichsetsforthinreasonabledetail thefactsandcircumstancesclaimedtoprovideabasisforterminationoftheExecutive’semploymentundertheprovisionsoindicated. ForpurposesofthisAgreement,nosuchpurportedterminationbytheCompanyshallbeeffectivewithoutsuchNoticeofTermination.

(g) “Date of Termination” shall mean (i) if the Executive’s employment is terminated by the Company for Disability, 30 days afterNoticeofTerminationisgiventotheExecutive(providedthattheExecutiveshallnothavereturnedtotheperformanceoftheExecutive’sdutiesonafulltimebasisduringsuch30dayperiod),(ii)iftheExecutive’semploymentisterminatedbytheExecutiveforGoodReason,thedatespecifiedintheNoticeofTermination,and(iii)iftheExecutive’semploymentisterminatedbytheCompanyforanyotherreason,thedateonwhichaNoticeofTerminationisgiven;provided,however,thatifwithin30daysafteranyNoticeofTerminationisgiventotheExecutivebytheCompany,theExecutivenotifiestheCompanythatadisputeexistsconcerningthetermination, theDateofTerminationshall beadatenoearlier thanthedateonwhichtheNoticeofTerminationisgiven,butotherwise, if theterminationistobeeffective,asofthedatesodetermined,whetherbymutualwrittenagreementofthepartiesoruponfinaljudgment,orderordecreeofacourtofcompetentjurisdiction.

3.SeveranceCompensationUponTerminationofEmploymentFollowingaChangeinControl:(a) If, pursuant to subparagraph 2(a), the Executive is entitled to the compensation provided for in this Paragraph 3, then, subject to

theprovisionsofParagraph7below,theCompanyshallpaytotheExecutiveinalumpsumcashpayment,thefollowing:(i)theChangeinControlSeveranceAmountasdefinedinsubparagraph3(b)belowwithinfivedaysfollowing,butnotearlierthan,thesixthmonth

anniversaryoftheDateofTermination;plus(ii)theExecutive’searnedbutunpaidbaseannualsalarythroughtheperiodendingontheDateofTerminationwithinthetimerequiredbylawfor

thepaymentofwagesuponterminationofemployment;plus

(iii) interest, if any, ontheamounts payable pursuant toclauses (i) and(ii) abovecalculatedfromtheDateof Terminationuntil paid(includinginterestcalculatedforthesixmonthperiodfromtheDateofTerminationtothedateofpaymentpursuanttoclause(i)orfromtheDateofTerminationtothedateofpaymentpursuanttoclause(ii)ifnotpaidwhendue)atarateequaltotheprimerateaspublishedintheWallStreetJournalontheDateofTerminationplusthreepercentagepoints,compoundedannually.

(b) “Change in Control Severance Amount” shall mean an amount equal to the sum of (i) two times the greater of (A) the Executive’sbaseannualsalaryineffectasoftheDateofTerminationor(B)theaverageoftheExecutive’sbaseannualsalarypaidforthefivefiscalyearsendingpriortotheDateofTermination,plus(ii)twotimesthegreaterof(A)theannualcashbonusawardedbytheBoardtotheExecutivewithrespecttotheCompany'smostrecentfiscalyear ending prior to the Date of Termination or (B) the average of the annual cash bonus amounts awarded by the Board to the Executive with respect to theCompany'smostrecentfivefiscalyearsendingpriortotheDateofTermination.

(c) If, pursuant to subparagraph 2(a), the Executive is entitled to the compensation provided in this Paragraph 3, then the ExecutivewillbeentitledtocontinuedparticipationinallWelfareBenefitPlans(asdefinedinsubparagraph2(e)(iii)above)inwhichtheExecutivewasparticipatingontheDateofTermination,suchcontinuedparticipationtobeatCompanycostandotherwiseonthesamebasisasCompanyemployeesgenerally,untiltheearlierof(i)thedate,or dates, the Executive receives equivalent coverage and benefits under the plans and programs of a subsequent employer (such coverages and benefits to bedeterminedonacoverage-by-coverageorbenefit-by-benefit basis)or(ii) twoyearsfromtheDateofTermination; provided(A)if theExecutiveisprecludedfromcontinuingparticipationinanyWelfareBenefitPlanasprovidedinthissentence,theExecutiveshallbepaid,inalumpsumcashpayment,within30daysfollowingthedateitisdeterminedtheExecutiveisunabletoparticipateinanyWelfareBenefitPlan,theafter-taxeconomicequivalentofthebenefitsprovidedundertheplanorprograminwhichtheExecutiveis unable toparticipate for theperiodspecifiedinthis sentence, and(B)theeconomicequivalent of anybenefit foregoneshall bedeemedtobethelowestcostthatwouldbeincurredbytheExecutiveinobtainingsuchbenefit(includingfamilyordependentcoverage,ifapplicable)onanindividualbasis.TheExecutiveshallbeeligibleforgrouphealthplancontinuationcoverageunderandinaccordancewiththeConsolidatedOmnibusBudgetReconciliationActof1985,asamended,whentheExecutiveceasestobeeligibleforcontinuedparticipationintheCompany'sgrouphealthplanunderthissubparagraph(c).

4. Company Right to Terminate Employment With or Without Cause; No Obligation of Executive to Mitigate Damages; No Effect On OtherContractualRights:

(a) Notwithstanding anything to the contrary herein, the Executive shall serve the Company at the pleasure of the Board and theBoardmayterminate the Executive’s employment at anytime, with our without Cause subject to the Executive’s right to payment of the severance compensationprovided for herein, if applicable. The Executive hereby acknowledges that this agreement does not guarantee continued employment with the Company for anyperiodoftimeanduponterminationoftheExecutive’semployment,theExecutiveshallhavenoclaimforcompensationorotherbenefitspursuanttothisagreementexceptasspecificallysetforthhereinfollowingaChangeofControl.

(b) The Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement byseeking other employment or otherwise, nor shall the amount of any payment provided for under this Agreement be reduced by any compensation earned by theExecutiveastheresultofemploymentbyanotheremployeraftertheDateofTerminationorotherwise.

(c) The provisions of this Agreement, and any payment provided for hereunder, shall not reduce any amounts otherwise payable, orinanywaydiminishtheExecutive’sexistingrights,orrightswhichwouldaccruesolelyasaresultofthepassageoftime,underanyBenefitPlan,IncentivePlanorSecuritiesPlan,orothercontract,planoragreementwithoroftheCompany.

5.Options,SecuritiesAwards,AndIncentiveAwards:(a) In the event of a Change in Control of the Company, then notwithstanding the terms and conditions of any Securities Plan or other

plan,agreementorarrangement,(i)ifanySecuritiesPlanwillnotbecontinuedastothesecuritiesoftheCompanyorastosubstantiallyequivalentpubliclytradedsecuritiesoftheCompanyoranysuccessorentity,or(ii)iftheExecutive’semploymentisterminatedandtheExecutiveisentitledtothecompensationprovidedforinParagraph3,thentheCompanyagreestoaccelerate,vest,andmakeimmediatelyexercisableinfullallunexercisableinstallmentsofalloptionstoacquiresecuritiesoftheCompany,tovestall unvestedawardsofsecuritiesoftheCompanyandtowaiveanyresaleorotherrestrictionsorrightsofrepurchaseapplicabletosecuritiesunderlyingsuchoptionsorapplicabletoawardsofsecuritiesoftheCompanyineachcase,whichareheldbytheExecutiveonthedateofsuchChangeinControl,includingwithoutlimitationanyoptionsorsecuritiesobtainedbytheExecutivepursuanttoanySecuritiesPlanorsecuritiesobtainedbytheExecutivepursuanttoanydiscontinuedIncentivePlan(asdefinedinsubparagraph2(e))totheextentthattheExecutivemaynototherwisebeabletorealizetheexpectedbenefitsthereofuponcontinuedemploymentbytheCompanyorapubliclytradedsuccessorentity.

(b) If the provisions of subparagraph (a) of this Paragraph 5 are applicable with respect to any Securities Plan within six (6) monthsfollowingaChangeinControl,anyoptionsorsecuritiesobtainedbytheExecutivepursuanttothediscontinuedSecuritiesPlanorsecuritiesobtainedbytheExecutivepursuanttoanyIncentivePlanasdescribedinsubparagraph(a)shallhavealimitedrightofsurrenderallowingtheExecutivetosurrendersuchoptionsorsecuritieswithinthe30dayperiodfollowingthedateonwhichtheprovisionsofsubparagraph(a)firstbecomeapplicableandtoreceiveacashpaymentinexchangeforthesurrenderofsuchoptionsorsecurities.Theamountofsuchpaymentshallbeequaltothesumof(i)theproductofthenumberofsecuritiesobtainedbytheExecutivepursuanttosuchSecuritiesPlanorIncentivePlanmultipliedbythegreaterof(x)thefairmarketvalueofthesecuritiesoftheCompanyonthedatepriortotheChangeinControlor(y)thepersharepricepaidtoshareholdersinconnectionwithsuchChangeinControl(alternatively,the“SecuritiesPrice”)and(ii)theproductof(a)thenumber of securities coveredbyoptions multiplied by(b) the positive amount, if any, equal to the Securities Price minusthe exercise price. Notwithstandingtheforegoing,ifanysuchpaymentwouldresultinliabilityunderSection16oftheExchangeAct,therightofsurrendershallcommenceupontheearliestdateitcanbeexercisedbytheExecutivewithoutliabilityandcontinueforthirtydaysthereafter.

6. Termination : This Agreement shall continue in effect for a period of two (2) years and shall automatically renew for successive two (2) yearperiodsfromtheearlierof(a)thenextscheduledterminationdate,unlesstheBoardprovidestheExecutivewithanoticeofnon-renewalatleast6monthsbeforethenextscheduledterminationdate,or(b)theeffectivedateofaChangeofControl.

7. Adjustment Related to Application of Excise Tax : If the Executive is entitled to receive the compensation provided for in Paragraph 3 and anypaymentreceivedortobereceivedbytheExecutiveisorwillbesubjecttothetax(the“ExciseTax”)imposedbySection4999oftheInternalRevenueCodeof1986,asamended(the“Code”),theadjustmentsetforthinsubparagraph(a)shallbemadetothepaymentsprovidedforinParagraph3above.

(a) If the present value of all benefits and payments to the Executive included in the determination of “parachute payments” pursuanttoSection280G(b)(2)oftheCodereceivedbyortobereceivedbytheExecutive(the“ParachutePayments”)isequaltoorexceeds3timesthe“baseamount”withrespect to the Executive as determined pursuant to Section 280G(b)(3) of the Code (the “Base Amount”), then the amount payable to the Executive pursuant toParagraph3aboveshallbereducedsothatthepresentvalueoftheParachutePaymentsisequalto3timestheBaseAmountminusthesumofOneHundredDollars($100.00.)

(b) It is the intention of the parties to this Agreement that the compensation payable to the Executive pursuant to this AgreementcontingentuponaChangeofControloftheCompanywillnotresultinany“excessparachutepayment”totheExecutiveasdeterminedunderSection280G(b)oftheCode or application of the Excise Tax to any such excess parachute payment. The provisions of this Paragraph 7 shall be applied so as to carry out the parties’intentionwithrespecttosuchtaxtreatment.EachpartyagreestotakesuchactionasmaybenecessaryorappropriatetocarryouttheprovisionsofthisParagraph7andto cooperate with the other as to all required determinations, includingthe payment or return of anypayment determined to bedueto the Executive or to theCompany,respectively.TheCompanyshallpayallcostsofaccountingtoassurecompliancewiththeintentofthisParagraph7.

8. Successors : The Company will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to allor substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to the Executive, expressly, absolutely andunconditionallytoassumeandagreetoperformthisAgreementinthesamemannerandtothesameextentthattheCompanywouldberequiredtoperformitifnosuchsuccessionorassignmenthadtakenplace.AnyfailureoftheCompanytoobtainsuchagreementpriortotheeffectivenessofanysuchsuccessionorassignmentshallbeamaterialbreachofthisAgreementandshallentitletheExecutivetoterminatetheExecutive’semploymentforGoodReasonandreceivethecompensationprovided for in Paragraph 3 above. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor or assign to itsbusinessand/orassetsasaforesaidwhichexecutesanddeliverstheagreementprovidedforinthisParagraph8orwhichotherwisebecomesboundbyallthetermsandprovisionsofthisAgreementbyoperationoflaw.

9. Survivorship : The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extentnecessarytotheintendedpreservationofsuchrightsandobligationsandtotheextentthatanyperformanceisrequiredfollowingterminationofthisAgreement.

10. Notices : Any notice, request, demand or other communication required or permitted hereunder shall be deemed to be properly given whenpersonally served in writing, when deposited in the United States mail, postage prepaid, or when communicated to a public telegraph company for transmittal,addressedtotheCompanyatitsheadofficelocationortheExecutiveattheExecutive’slastknownaddress.Eitherpartymaychangeitsaddressbywrittennoticeinaccordancewiththisparagraph.

11. Benefit of Agreement : This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal and legal representatives,executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while any amounts are still payable to the Executivehereunder,allsuchamounts,unlessotherwiseprovidedherein,shallbepaidinaccordancewiththetermsofthisAgreementtotheExecutive'sdevisee,legateeorotherdesigneeor,iftherebenosuchdesignee,totheExecutive’sestate.

12. Applicable Law : Except to the extent governed by the laws of the United States, this Agreement is to be governed by and construed under thelawsoftheStateofCalifornia.

13. Captions and Paragraph Headings : Captions and paragraph headings used herein are for convenience only and are not a part of this AgreementandshallnotbeusedintheinterpretationofthisAgreement.

14. Invalid Provisions : Should any provision of this Agreement for any reason be declared invalid, void or unenforceable by a court of competentjurisdiction,thevalidityandbindingeffectofanyremainingportionshallnotbeaffected,andtheremainingportionsofthisAgreementshallremaininfullforceandeffectasifthisAgreementhadbeenexecutedwithsaidprovisioneliminated.

15. Entire Agreement : This Agreement contains the entire agreement of the parties. It supersedes any and all other agreements, either oral or inwriting,betweenthepartiesheretowithrespecttothematterscoveredherein.andspecifically,theEmploymentAgreementbetweentheCompanyandtheExecutivedated9thdayofJuly,2001isterminatedasoftheEffectiveDateofthisAgreement.EachpartytothisAgreementacknowledgesthatnorepresentations,inducements,promises,oragreements,oralorotherwise,havebeenmadebyanyparty,oranyoneactingonbehalfofanyparty,whicharenotembodiedherein,andthatnootheragreement,statement,orpromiserelatingtothematterscoveredhereinandnotcontainedinthisAgreementshallbevalidorbinding.ThisAgreementmaynotbemodifiedoramendedbyoralagreement,butonlybyanyagreementinwritingsignedbytheCompanyandtheExecutive.

16. Attorney’s Fees : If any action, including arbitration, is brought to enforce this Agreement or to determine the relative rights and obligations ofeitherofthepartiesandarulingisobtainedinfavorofeitherparty,regardlessofwhichpartyinstitutestheaction,theprevailingpartywillbeentitledtoreasonableattorney’sfees.

INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementasofthedayandyearfirstabovewritten.

“COMPANY” “EXECUTIVE”

WD-40COMPANY

By /s/GARRYO.RIDGE /s/GEOFFJ.HOLDSWORTHGARRYO.RIDGE,President&CEO GEOFFJ.HOLDSWORTH,Executive

By /s/MARIAM.MITCHELLMARIAM.MITCHELL,Secretary

Exhibit 10(s )

CHANGE OF CONTROL SEVERANCE AGREEMENT

THIS AGREEMENT (“Agreement”) is made on this 14 th day ofFebruary, 2006 (the “Effective Date”) between WD-40 COMPANY(hereinafter the“Company”)andWILLIAMB.NOBLE(hereinafterthe“Executive”).

RECITALS:Whereas, the Companyhas determined that the Executive is amongthat groupof keymanagers whoseservices andparticipation in management maybe

criticalinanyperiodoftransition,suchasatthetimeofanychangeincontroloftheCompanyorinthefaceofanyproposedcorporatereorganizationoracquisition,friendlyorhostile,affectingtheCompany.Accordingly,theboardofdirectorsoftheCompany(the“Board”)hasdeterminedthatitisappropriateandinthebestinterestsoftheCompanyanditsstockholdersthatprovisionsbemadetoencouragetheExecutive’scontinuedattentionandundistracteddedicationtotheExecutive’sdutiesinthepotentiallydisturbingcircumstancesofapossiblechangeincontroloftheCompany,byprovidingtheExecutivewithsomedegreeofpersonalfinancialsecurityundersuchcircumstances.

NOWTHEREFORE,thepartiesagreeasfollows:1.ChangeinControl:ForpurposesofthisAgreement,ChangeinControlshallmean:

(a) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities ExchangeActof1934,asamended(the“ExchangeAct”))(a“Person”), ofbeneficial ownership(withinthemeaningofRule13d-3promulgatedundertheExchangeAct)of30%ormoreofeither (i) thethen-outstandingsharesofcommonstockoftheCompany(the“OutstandingCompanyCommonStock”)or(ii) thecombinedvotingpowerofthethen-outstandingvotingsecuritiesoftheCompanyentitledtovotegenerallyintheelectionofdirectors(the“OutstandingCompanyVotingSecurities”);provided,however,thatthefollowingacquisitionsshallnotconstituteaChangeinControl:(A)anyacquisitiondirectlyfromtheCompany(excludinganacquisitionbyvirtueoftheexerciseofaconversionprivilege),(B)anyacquisitionbyanyemployeebenefitplan(orrelatedtrust)sponsoredormaintainedbytheCompanyoranycorporation controlled by the Company or (C) any acquisition by any corporation pursuant to a reorganization, merger or consolidation, if, following suchreorganization,mergerorconsolidation,theconditionsdescribedinsubclauses(i),(ii)and(iii)ofsubparagraph(c)ofthissentencearesatisfied;or

(b) if individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least amajority of theBoard; provided, however, that anyindividual becomingadirector subsequent tothedate hereof whoseelection, or nominationfor electionbytheCompany’s stockholders, was approved by a vote of at least two-thirds of the directors then constituting the Incumbent Board shall be considered as thoughsuchindividualwereamemberoftheIncumbentBoard,butexcluding,forthispurpose,anysuchindividualwhoseinitialassumptionofofficeoccursasaresultofeitheranactualorthreatenedelectioncontestsubjecttoRule14a-11ofRegulation14ApromulgatedundertheExchangeActorotheractualorthreatenedsolicitationofproxiesorconsentsbyoronbehalfofaPersonotherthantheBoard;or

(c) approval by the stockholders of the Company of a reorganization, merger or consolidation, unless following such reorganization,mergerorconsolidation(i)morethan60%of,respectively,thethen-outstandingsharesofcommonstockofthecorporationresultingfromsuchreorganization,mergerorconsolidationandthecombinedvotingpowerofthethenoutstandingvotingsecuritiesofsuchcorporationentitledtovotegenerallyintheelectionofdirectorsisthenbeneficiallyowned,directlyorindirectly,byallorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecuritiesimmediatelypriortosuchreorganization,merger,orconsolidationinsubstantiallythesameproportions as their ownership, immediately prior to such reorganization, merger or consolidation, of the Outstanding Company Common Stock and OutstandingCompanyVotingSecurities, asthecasemaybe(forpurposesofdeterminingwhethersuchpercentagetest is satisfied, thereshall beexcludedfromthenumberofshares and voting securities of the resulting corporation owned by the Company's stockholders, but not from the total number of outstanding shares and votingsecurities of the resulting corporation, anyshares or votingsecurities receivedbyanysuchstockholder in respect of anyconsideration other thanshares or votingsecuritiesoftheCompany);(ii)noPerson(excludingtheCompany,anyemployeebenefitplan(orrelatedtrust)oftheCompany,anyqualifiedemployeebenefitplanofsuchcorporationresultingfromsuchreorganization,mergerorconsolidationandanyPersonbeneficiallyowning,immediatelypriortosuchreorganization,mergerorconsolidation,directlyorindirectly, 20%ormoreoftheOutstandingCompanyCommonStockorOutstandingCompanyVotingSecurities, asthecasemaybe)beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from suchreorganization, mergerorconsolidationorthecombinedvotingpowerofthethen-outstandingvotingsecuritiesofsuchcorporationentitledtovotegenerallyintheelectionofdirectors;and(iii)atleast

amajorityofthemembersoftheboardofdirectorsofthecorporationresultingfromsuchreorganization,mergerorconsolidationweremembersoftheIncumbentBoardatthetimeoftheexecutionoftheinitialagreementprovidingforsuchreorganization,mergerorconsolidation;or

(d) (i) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company or (ii) the first to occurof(A)thesaleorotherdisposition(inonetransactionoraseriesofrelatedtransactions)ofallorsubstantiallyalloftheassetsoftheCompany,or(B)theapprovalbythe stockholders of the Company of any such sale or disposition, other than, in each case, any such sale or disposition to a corporation, with respect to whichimmediatelythereafter,(1)morethan60%of,respectively,thethen-outstandingsharesofcommonstockofsuchcorporationandthecombinedvotingpowerofthethen-outstandingvotingsecuritiesofsuchcorporationentitledtovotegenerallyintheelectionofdirectorsisthenbeneficiallyowned,directlyorindirectly,byallorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecuritiesimmediatelypriortosuchsaleorotherdispositioninsubstantiallythesameproportionastheirownership,immediatelypriortosuchsaleorotherdisposition,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecurities,asthecasemaybe(forpurposesofdeterminingwhethersuchpercentage test is satisfied, there shall be excluded from the number of shares and voting securities of the transferee corporation owned by the Company’sstockholders,butnotfromthetotalnumberofoutstandingsharesandvotingsecuritiesofthetransfereecorporation,anysharesorvotingsecuritiesreceivedbyanysuchstockholderinrespectofanyconsiderationotherthansharesorvotingsecuritiesoftheCompany);(2)noPerson(excludingtheCompany,anyemployeebenefitplan(orrelatedtrust)oftheCompany,anyqualifiedemployeebenefitplanofsuchtransfereecorporationandanyPersonbeneficiallyowning,immediatelypriortosuchsaleorotherdisposition,directlyorindirectly,20%ormoreoftheOutstandingCompanyCommonStockorOutstandingCompanyVotingSecurities,asthecasemaybe)beneficiallyowns,directlyorindirectly,30%ormoreof,respectively,thethen-outstandingsharesofcommonstockofsuchtransfereecorporationandthecombinedvotingpowerofthethen-outstandingvotingsecuritiesofsuchtransfereecorporationentitledtovotegenerallyintheelectionofdirectors;and(3)atleastamajority of the members of the board of directors of suchtransferee corporation were members of the Incumbent Board at the timeof the execution of the initialagreementoractionoftheboardprovidingforsuchsaleorotherdispositionofassetsoftheCompany.

2.TerminationFollowingaChangeinControl:(a)TheExecutiveshallbeentitledtothecompensationprovidedforinParagraph3ifallofthefollowingconditionsaresatisfied:(i)thereisaChangeinControloftheCompanywhiletheExecutiveisstillanemployeeoftheCompany;(ii)theExecutive’semploymentwiththeCompanyisterminatedwithintwoyearsaftertheChangeinControl;and(iii) the Executive's termination of employment is not a result of (A) the Executive's death; (B) the Executive’s Disability (as defined in

subparagraph2(b) below); (C)theExecutive’s Retirement (asdefinedinsubparagraph2(c) below); (D)theExecutive's terminationbytheCompanyfor Cause(asdefined in subparagraph 2(d) below); or (E) the Executive’s decision to terminate employment other than for Good Reason (as defined in subparagraph 2(e)below).Notwithstandingtheforegoing,ifaChangeofControloccursandiftheExecutive'semploymentwiththeCompanyisterminatedpriortothedateonwhichtheChangeofControloccurs,andifitisreasonablydemonstratedbytheExecutivethatsuchterminationofemployment(i)wasattherequestofathirdpartywhohastakenstepsreasonablycalculatedtoeffectaChangeofControlor(ii)otherwisearoseinconnectionwithorinanticipationofaChangeofControl,thentheExecutiveshallbeentitledtothecompensationprovidedforinParagraph3.

(b) If, as a result of the Executive’s incapacity due to physical or mental illness, the Executive shall have been unable, with or withouta reasonable accommodation, to perform the Executive’s duties with the Company on a full time basis for six months and if, within 30 days after a Notice ofTermination(asdefinedinsubparagraph2(f))isthereaftergivenbytheCompany,theExecutiveshallnothavereturnedtothefulltimeperformanceoftheExecutive'sduties,theCompanymayterminatetheExecutive'semploymentfor“Disability”.

(c) The term “Retirement” as used in this Agreement shall mean termination by the Company or the Executive of the Executive’semploymentundercircumstanceswherebytheExecutiveisotherwiseentitledtoreceivebenefitspayableunderthepresentlyexistingSupplementalRetirementBenefitPlanenteredintobetweentheCompanyandtheExecutiveorsuchothernonqualifiedretirementbenefitplanprovidingsubstantiallysimilarbenefits.

(d) The Company may terminate the Executive's employment for Cause before or after a Change in Control. For purposes of thisAgreementonly,“Cause”shallmean:(i)theExecutive’scommissionofactssubjecttoprosecutionasafelonyinvolvingmoralturpitude;(ii)theExecutive’smaterialbreachoffiduciarydutyasanexecutiveofficeroftheCompanywhichhasresulted,orislikelytoresult,inmaterialeconomicdamagetotheCompany;or(iii)theExecutive’swillfulgrossmisconductorwillfulgrossneglectofduties(otherthananysuchneglectresultingfromtheExecutive'sincapacityduetophysicalormentalillnessoranysuchneglectaftertheissuanceofaNoticeofTerminationbytheExecutiveforGoodReason,assuchtermsaredefinedinsubparagraphs(e)and(f)

belowandastheymayapplyunderthisParagraph2);providedthatnoactorfailuretoactbytheExecutivewillconstitute“Cause”underclause(ii)iftheExecutivebelievedingoodfaiththatsuchactorfailuretoactwasinthebestinterestoftheCompany.

AnyterminationoftheExecutive’semploymentbytheCompanyforCauseshallbeauthorizedbyavoteofatleastamajorityoftheindependentmembersofthe Board (as they maybe determined by the Board fromtime to time) within 12 months of a majority of such independent members of the Board having actualknowledgeoftheeventorcircumstancesprovidingabasisforsuchtermination.Inthecaseofclauses(i)and(ii)ofthesecondsentenceofthissubparagraph(d),theExecutive shall be given notice by the Board specifying in detail the particular act or failure to act on which the Board is relying in proposing to terminate theExecutiveforCauseandofferingtheExecutiveanopportunity,onadateatleast14daysafterreceiptofsuchnotice,tohaveahearing,withcounsel,beforeamajorityof the independent members of the Board, including each of the members of the Board who authorized the termination for Cause. The Executive shall not beterminatedforCauseif,within30daysafterthedateoftheExecutive’shearingbeforetheBoard(oriftheExecutivewaivesahearing,within30daysafterreceivingnoticeoftheproposedtermination),theExecutivehascorrectedtheparticularactorfailuretoactspecifiedinthenoticegivenunderclause(ii)ofthesecondsentenceofthissubparagraph(d),andbysocorrectingsuchactorfailuretoacttheExecutivehasreducedtheeconomicdamagetheactorfailuretoacthasallegedlycausedtheCompanytoalevelwhichisnolongermaterialorhaseliminatedtheprobabilitythatsuchactorfailuretoactislikelytoresultinmaterialeconomicdamagetotheCompany. Notermination for Cause shall take effect until the expiration of the correction period described in the preceding sentence and the determination by amajority of the independent members of the Board that the Executive has failed to correct the act or failure to act in accordance with the terms of the precedingsentence.Otherthanasspecifiedherein,thedecisionofamajorityoftheindependentmembersoftheBoardofDirectorswithrespecttoanydeterminationofthegroundsforterminationoftheExecutive’semploymentforCauseshallbebindingabsentevidenceofbadfaithormanifestinjustice.

(e) The Executive may terminate the Executive’s employment for Good Reason at any time following a Change in Control. ForpurposesofthisAgreement,“GoodReason”shallmean,afteranyChangeinControlandwithouttheExecutive’sexpresswrittenconsent,anyofthefollowing:

(i)asignificantdiminutionintheExecutive'sdutiesandresponsibilities,ortheassignmenttotheExecutivebytheCompanyofdutiesinconsistentwiththeExecutive's position, duties, responsibilities orstatuswiththeCompanyimmediatelyprior toaChangeinControloftheCompany,oranyremovaloftheExecutivefromoranyfailuretore-electtheExecutivetoanyofsuchpositions,exceptinconnectionwiththeterminationofemploymentforDisability,RetirementorCauseorasaresultoftheExecutive’sdeathorbytheExecutiveotherthanforGoodReason;

(ii) a reduction by the Company in the Executive’s annual rate of base salary as in effect immediately prior to a Change of Control or theCompany’sfailuretoincrease(within12monthsoftheExecutive’s last adjustment inannual rateofbasesalary) theExecutive's annual rateof basesalaryafter aChangeinControloftheCompanyinanamountwhichatleastequals,onapercentagebasis,theaveragepercentageincreaseintheannualrateofbasesalarymostrecentlyorthencurrentlybeingeffectedforallotherexecutiveofficersoftheCompany;

(iii)(A)anyfailurebytheCompanytocontinueineffectanybenefitplanorarrangement(including,withoutlimitation,medical,dental,andotherestablished benefit plans (“Welfare Benefit Plans”), group life insurance and retirement plans) in which the Executive is participating at the time of a Change inControl of the Company (all hereinafter referred to as “Benefit Plans”) unless the Executive receives benefits through another plan or arrangement providing theExecutivewithbenefits,whenconsideredintheaggregate,thatarenolessfavorablethanthebenefitsunderallBenefitPlansavailabletotheExecutiveatthetimeofaChangeinControl,or(B)thetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive’sparticipationinormateriallyreducetheExecutive’sbenefits undertheBenefit Plansor otherwisedeprivetheExecutiveof anymaterial fringebenefit or perquisite of officeenjoyedbytheExecutiveat thetimeofaChangeinControloftheCompanyconsideredintheaggregatewithallbenefitssoprovidedtotheExecutive;

(iv)(A)anyfailurebytheCompanytocontinueineffectanyincentiveplanorarrangement(including,withoutlimitation,theCompany’sincentivebonusandcontingentbonusarrangementsandcreditsandtherighttoreceiveperformanceawardsandsimilarlongandshort-termincentivecompensationbenefits)inwhichtheExecutiveisparticipatingatthetimeofaChangeinControloftheCompany(hereinafterreferredtoas“IncentivePlans”),(B)thetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive’sparticipationinanysuchIncentivePlanorreducetheExecutive’sbenefitsunderanysuchIncentivePlan,unless in the case of either subclause (A) or (B) above, there is substituted a comparable plan or programthat is economically equivalent, in terms of the benefitofferedtotheExecutive,totheIncentivePlanbeingaltered,reduced,affectedorended,or(C)anyfailurebytheCompanywithrespecttoanyfiscalyeartomakeanawardtotheExecutivepursuanttoeachsuchIncentivePlanorsuchsubstitutedcomparableplanorprograminaccordancewithitstermsorotherwiseinamannerconsistentwithawardsorbenefitsprovidedtootherexecutiveofficersoftheCompany;

(v) (A) any failure by the Company to continue in effect any plan or arrangement to receive securities of the Company (including, withoutlimitation,theCompany'sstockoptionplansandotherequityincentiveplansasauthorizedbytheBoardfortheseniorexecutiveofficers)inwhichtheExecutiveisparticipatingatthetime

ofaChangeinControloftheCompany(hereinafterreferredtoas“SecuritiesPlans”),orthetakingofanyactionbytheCompanywhichwouldadverselyaffecttheExecutive'sparticipationinormateriallyreducetheExecutive’sbenefitsunderanysuchSecuritiesPlanor(B)anyfailurebytheCompanyinanyfiscalyeartograntstockoptions, stockappreciation rights or securities awards to the Executive pursuant to suchSecurities Plans or otherwise in a manner consistent with awards orgrantsprovidedtootherexecutiveofficersoftheCompany;andprovidedfurtherthatthematerialtermsandconditionsofsuchstockoptions,stockappreciationrights,andsecuritiesawardsgrantedtotheExecutiveaftertheChangeinControl(including,butnotlimitedto,theexerciseprice,vestingschedule,periodandmethodsofexercise, expiration date, forfeiture provisions and other restrictions) are substantially similar to the material terms and conditions of the stock options, stockappreciationrights,andsecuritiesawardsgrantedtotheExecutiveundertheSecuritiesPlansimmediatelypriortotheChangeinControloftheCompany;

(vi)arelocationoftheCompany’sprincipalexecutiveofficestoalocationmorethan100milesoutsideofSanDiego,California,ortheExecutive’srelocationmorethan100milesfromthelocationatwhichtheExecutiveperformedtheExecutive'sdutiespriortoaChangeinControloftheCompany,exceptforrequired travel by the Executive on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations at the time of aChangeinControloftheCompany;

(vii)anyfailurebytheCompanytoprovidetheExecutivewiththenumberofannualpaidvacationdaystowhichtheExecutiveisentitledfortheyearinwhichaChangeinControloftheCompanyoccurs;

(viii)anymaterialbreachbytheCompanyofanyprovisionofthisAgreement;(ix)anyfailurebytheCompanytoobtaintheassumptionofthisAgreementbyanysuccessororassignoftheCompany;(x) theCompanyor its successor nolonger is requiredto haveits commonstockregisteredpursuant to Section12(b) or 12(g) of theSecurities

ExchangeActof1934,asamended;or(xi)anypurportedterminationoftheExecutive’semploymentbytheCompanypursuanttosubparagraphs2(b),2(c)or2(d)whichisnoteffected

pursuant to a Noticeof Terminationsatisfyingtherequirements of subparagraph2(f) below(and, if applicable, subparagraph2(d) above), andfor purposes of thisAgreement,nosuchpurportedterminationshallbeeffective.

Forpurposesofthissubparagraph(e),anisolated,immaterial,andinadvertentactionnottakeninbadfaithbytheCompanyinviolationofclauses(i)-(v),(vii)or(xi)ofthissubparagraphthatisremediedbytheCompanypromptlyafterreceiptofnoticethereofgivenbytheExecutiveshallnotbeconsideredGoodReason for the Executive’s termination of employment with the Company. In the event the Executive terminates the Executive’s employment for Good Reasonhereunder,thennotwithstandingthattheExecutivemayalsobeconsideredretiredforpurposesofBenefitPlans(otherthantheSupplementalRetirementBenefitPlanorothernon-qualifiedplanprovidingsimilarbenefits),IncentivePlansorSecuritiesPlans,theExecutiveshallbedeemedtohaveterminatedemploymentforGoodReasonforpurposesofthisAgreement.

(f) Any termination of the Executive’s employment by the Company pursuant to subparagraphs 2(b), 2(c) or 2(d), or by the Executivepursuant to subparagraph 2(e) above, shall be communicated by a Notice of Termination to the other party hereof. For purposes of this Agreement, a “Notice ofTermination”shallmeanawrittennoticewhichshallindicatethosespecificterminationprovisionsinthisAgreementrelieduponandwhichsetsforthinreasonabledetail thefactsandcircumstancesclaimedtoprovideabasisforterminationoftheExecutive’semploymentundertheprovisionsoindicated. ForpurposesofthisAgreement,nosuchpurportedterminationbytheCompanyshallbeeffectivewithoutsuchNoticeofTermination.

(g) “Date of Termination” shall mean (i) if the Executive’s employment is terminated by the Company for Disability, 30 days afterNoticeofTerminationisgiventotheExecutive(providedthattheExecutiveshallnothavereturnedtotheperformanceoftheExecutive’sdutiesonafulltimebasisduringsuch30dayperiod),(ii)iftheExecutive’semploymentisterminatedbytheExecutiveforGoodReason,thedatespecifiedintheNoticeofTermination,and(iii)iftheExecutive’semploymentisterminatedbytheCompanyforanyotherreason,thedateonwhichaNoticeofTerminationisgiven;provided,however,thatifwithin30daysafteranyNoticeofTerminationisgiventotheExecutivebytheCompany,theExecutivenotifiestheCompanythatadisputeexistsconcerningthetermination, theDateofTerminationshall beadatenoearlier thanthedateonwhichtheNoticeofTerminationisgiven,butotherwise, if theterminationistobeeffective,asofthedatesodetermined,whetherbymutualwrittenagreementofthepartiesoruponfinaljudgment,orderordecreeofacourtofcompetentjurisdiction.

3.SeveranceCompensationUponTerminationofEmploymentFollowingaChangeinControl:(a) If, pursuant to subparagraph 2(a), the Executive is entitled to the compensation provided for in this Paragraph 3, then, subject to

theprovisionsofParagraph7below,theCompanyshallpaytotheExecutiveinalumpsumcashpayment,thefollowing:(i)theChangeinControlSeveranceAmountasdefinedinsubparagraph3(b)belowwithinfivedaysfollowing,butnotearlierthan,thesixthmonth

anniversaryoftheDateofTermination;plus(ii)theExecutive’searnedbutunpaidbaseannualsalarythroughtheperiodendingontheDateofTerminationwithinthetimerequiredbylawfor

thepaymentofwagesuponterminationofemployment;plus

(iii) interest, if any, ontheamounts payable pursuant toclauses (i) and(ii) abovecalculatedfromtheDateof Terminationuntil paid(includinginterestcalculatedforthesixmonthperiodfromtheDateofTerminationtothedateofpaymentpursuanttoclause(i)orfromtheDateofTerminationtothedateofpaymentpursuanttoclause(ii)ifnotpaidwhendue)atarateequaltotheprimerateaspublishedintheWallStreetJournalontheDateofTerminationplusthreepercentagepoints,compoundedannually.

(b) “Change in Control Severance Amount” shall mean an amount equal to the sum of (i) two times the greater of (A) the Executive’sbaseannualsalaryineffectasoftheDateofTerminationor(B)theaverageoftheExecutive’sbaseannualsalarypaidforthefivefiscalyearsendingpriortotheDateofTermination,plus(ii)twotimesthegreaterof(A)theannualcashbonusawardedbytheBoardtotheExecutivewithrespecttotheCompany'smostrecentfiscalyear ending prior to the Date of Termination or (B) the average of the annual cash bonus amounts awarded by the Board to the Executive with respect to theCompany'smostrecentfivefiscalyearsendingpriortotheDateofTermination.

(c) If, pursuant to subparagraph 2(a), the Executive is entitled to the compensation provided in this Paragraph 3, then the ExecutivewillbeentitledtocontinuedparticipationinallWelfareBenefitPlans(asdefinedinsubparagraph2(e)(iii)above)inwhichtheExecutivewasparticipatingontheDateofTermination,suchcontinuedparticipationtobeatCompanycostandotherwiseonthesamebasisasCompanyemployeesgenerally,untiltheearlierof(i)thedate,or dates, the Executive receives equivalent coverage and benefits under the plans and programs of a subsequent employer (such coverages and benefits to bedeterminedonacoverage-by-coverageorbenefit-by-benefit basis)or(ii) twoyearsfromtheDateofTermination; provided(A)if theExecutiveisprecludedfromcontinuingparticipationinanyWelfareBenefitPlanasprovidedinthissentence,theExecutiveshallbepaid,inalumpsumcashpayment,within30daysfollowingthedateitisdeterminedtheExecutiveisunabletoparticipateinanyWelfareBenefitPlan,theafter-taxeconomicequivalentofthebenefitsprovidedundertheplanorprograminwhichtheExecutiveis unable toparticipate for theperiodspecifiedinthis sentence, and(B)theeconomicequivalent of anybenefit foregoneshall bedeemedtobethelowestcostthatwouldbeincurredbytheExecutiveinobtainingsuchbenefit(includingfamilyordependentcoverage,ifapplicable)onanindividualbasis.TheExecutiveshallbeeligibleforgrouphealthplancontinuationcoverageunderandinaccordancewiththeConsolidatedOmnibusBudgetReconciliationActof1985,asamended,whentheExecutiveceasestobeeligibleforcontinuedparticipationintheCompany'sgrouphealthplanunderthissubparagraph(c).

4. Company Right to Terminate Employment With or Without Cause; No Obligation of Executive to Mitigate Damages; No Effect On OtherContractualRights:

(a) Notwithstanding anything to the contrary herein, the Executive shall serve the Company at the pleasure of the Board and theBoardmayterminate the Executive’s employment at anytime, with our without Cause subject to the Executive’s right to payment of the severance compensationprovided for herein, if applicable. The Executive hereby acknowledges that this agreement does not guarantee continued employment with the Company for anyperiodoftimeanduponterminationoftheExecutive’semployment,theExecutiveshallhavenoclaimforcompensationorotherbenefitspursuanttothisagreementexceptasspecificallysetforthhereinfollowingaChangeofControl.

(b) The Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement byseeking other employment or otherwise, nor shall the amount of any payment provided for under this Agreement be reduced by any compensation earned by theExecutiveastheresultofemploymentbyanotheremployeraftertheDateofTerminationorotherwise.

(c) The provisions of this Agreement, and any payment provided for hereunder, shall not reduce any amounts otherwise payable, orinanywaydiminishtheExecutive’sexistingrights,orrightswhichwouldaccruesolelyasaresultofthepassageoftime,underanyBenefitPlan,IncentivePlanorSecuritiesPlan,orothercontract,planoragreementwithoroftheCompany.

5.Options,SecuritiesAwards,AndIncentiveAwards:(a) In the event of a Change in Control of the Company, then notwithstanding the terms and conditions of any Securities Plan or other

plan,agreementorarrangement,(i)ifanySecuritiesPlanwillnotbecontinuedastothesecuritiesoftheCompanyorastosubstantiallyequivalentpubliclytradedsecuritiesoftheCompanyoranysuccessorentity,or(ii)iftheExecutive’semploymentisterminatedandtheExecutiveisentitledtothecompensationprovidedforinParagraph3,thentheCompanyagreestoaccelerate,vest,andmakeimmediatelyexercisableinfullallunexercisableinstallmentsofalloptionstoacquiresecuritiesoftheCompany,tovestall unvestedawardsofsecuritiesoftheCompanyandtowaiveanyresaleorotherrestrictionsorrightsofrepurchaseapplicabletosecuritiesunderlyingsuchoptionsorapplicabletoawardsofsecuritiesoftheCompanyineachcase,whichareheldbytheExecutiveonthedateofsuchChangeinControl,includingwithoutlimitationanyoptionsorsecuritiesobtainedbytheExecutivepursuanttoanySecuritiesPlanorsecuritiesobtainedbytheExecutivepursuanttoanydiscontinuedIncentivePlan(asdefinedinsubparagraph2(e))totheextentthattheExecutivemaynototherwisebeabletorealizetheexpectedbenefitsthereofuponcontinuedemploymentbytheCompanyorapubliclytradedsuccessorentity.

(b) If the provisions of subparagraph (a) of this Paragraph 5 are applicable with respect to any Securities Plan within six (6) monthsfollowingaChangeinControl,anyoptionsorsecuritiesobtainedbytheExecutivepursuanttothediscontinuedSecuritiesPlanorsecuritiesobtainedbytheExecutivepursuanttoanyIncentivePlanasdescribedinsubparagraph(a)shallhavealimitedrightofsurrenderallowingtheExecutivetosurrendersuchoptionsorsecuritieswithinthe30dayperiodfollowingthedateonwhichtheprovisionsofsubparagraph(a)firstbecomeapplicableandtoreceiveacashpaymentinexchangeforthesurrenderofsuchoptionsorsecurities.Theamountofsuchpaymentshallbeequaltothesumof(i)theproductofthenumberofsecuritiesobtainedbytheExecutivepursuanttosuchSecuritiesPlanorIncentivePlanmultipliedbythegreaterof(x)thefairmarketvalueofthesecuritiesoftheCompanyonthedatepriortotheChangeinControlor(y)thepersharepricepaidtoshareholdersinconnectionwithsuchChangeinControl(alternatively,the“SecuritiesPrice”)and(ii)theproductof(a)thenumber of securities coveredbyoptions multiplied by(b) the positive amount, if any, equal to the Securities Price minusthe exercise price. Notwithstandingtheforegoing,ifanysuchpaymentwouldresultinliabilityunderSection16oftheExchangeAct,therightofsurrendershallcommenceupontheearliestdateitcanbeexercisedbytheExecutivewithoutliabilityandcontinueforthirtydaysthereafter.

6. Termination : This Agreement shall continue in effect for a period of two (2) years and shall automatically renew for successive two (2) yearperiodsfromtheearlierof(a)thenextscheduledterminationdate,unlesstheBoardprovidestheExecutivewithanoticeofnon-renewalatleast6monthsbeforethenextscheduledterminationdate,or(b)theeffectivedateofaChangeofControl.

7. Adjustment Related to Application of Excise Tax : If the Executive is entitled to receive the compensation provided for in Paragraph 3 and anypaymentreceivedortobereceivedbytheExecutiveisorwillbesubjecttothetax(the“ExciseTax”)imposedbySection4999oftheInternalRevenueCodeof1986,asamended(the“Code”),theadjustmentsetforthinsubparagraph(a)shallbemadetothepaymentsprovidedforinParagraph3above.

(a) If the present value of all benefits and payments to the Executive included in the determination of “parachute payments” pursuanttoSection280G(b)(2)oftheCodereceivedbyortobereceivedbytheExecutive(the“ParachutePayments”)isequaltoorexceeds3timesthe“baseamount”withrespect to the Executive as determined pursuant to Section 280G(b)(3) of the Code (the “Base Amount”), then the amount payable to the Executive pursuant toParagraph3aboveshallbereducedsothatthepresentvalueoftheParachutePaymentsisequalto3timestheBaseAmountminusthesumofOneHundredDollars($100.00.)

(b) It is the intention of the parties to this Agreement that the compensation payable to the Executive pursuant to this AgreementcontingentuponaChangeofControloftheCompanywillnotresultinany“excessparachutepayment”totheExecutiveasdeterminedunderSection280G(b)oftheCode or application of the Excise Tax to any such excess parachute payment. The provisions of this Paragraph 7 shall be applied so as to carry out the parties’intentionwithrespecttosuchtaxtreatment.EachpartyagreestotakesuchactionasmaybenecessaryorappropriatetocarryouttheprovisionsofthisParagraph7andto cooperate with the other as to all required determinations, includingthe payment or return of anypayment determined to bedueto the Executive or to theCompany,respectively.TheCompanyshallpayallcostsofaccountingtoassurecompliancewiththeintentofthisParagraph7.

8. Successors : The Company will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to allor substantially all of the business and/or assets of the Company, by agreement in form and substance satisfactory to the Executive, expressly, absolutely andunconditionallytoassumeandagreetoperformthisAgreementinthesamemannerandtothesameextentthattheCompanywouldberequiredtoperformitifnosuchsuccessionorassignmenthadtakenplace.AnyfailureoftheCompanytoobtainsuchagreementpriortotheeffectivenessofanysuchsuccessionorassignmentshallbeamaterialbreachofthisAgreementandshallentitletheExecutivetoterminatetheExecutive’semploymentforGoodReasonandreceivethecompensationprovided for in Paragraph 3 above. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor or assign to itsbusinessand/orassetsasaforesaidwhichexecutesanddeliverstheagreementprovidedforinthisParagraph8orwhichotherwisebecomesboundbyallthetermsandprovisionsofthisAgreementbyoperationoflaw.

9. Survivorship : The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extentnecessarytotheintendedpreservationofsuchrightsandobligationsandtotheextentthatanyperformanceisrequiredfollowingterminationofthisAgreement.

10. Notices : Any notice, request, demand or other communication required or permitted hereunder shall be deemed to be properly given whenpersonally served in writing, when deposited in the United States mail, postage prepaid, or when communicated to a public telegraph company for transmittal,addressedtotheCompanyatitsheadofficelocationortheExecutiveattheExecutive’slastknownaddress.Eitherpartymaychangeitsaddressbywrittennoticeinaccordancewiththisparagraph.

11. Benefit of Agreement : This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal and legal representatives,executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while any amounts are still payable to the Executivehereunder,allsuchamounts,unlessotherwiseprovidedherein,shallbepaidinaccordancewiththetermsofthisAgreementtotheExecutive'sdevisee,legateeorotherdesigneeor,iftherebenosuchdesignee,totheExecutive’sestate.

12. Applicable Law : Except to the extent governed by the laws of the United States, this Agreement is to be governed by and construed under thelawsoftheStateofCalifornia.

13. Captions and Paragraph Headings : Captions and paragraph headings used herein are for convenience only and are not a part of this AgreementandshallnotbeusedintheinterpretationofthisAgreement.

14. Invalid Provisions : Should any provision of this Agreement for any reason be declared invalid, void or unenforceable by a court of competentjurisdiction,thevalidityandbindingeffectofanyremainingportionshallnotbeaffected,andtheremainingportionsofthisAgreementshallremaininfullforceandeffectasifthisAgreementhadbeenexecutedwithsaidprovisioneliminated.

15. Entire Agreement : This Agreement contains the entire agreement of the parties. It supersedes any and all other agreements, either oral or inwriting,betweenthepartiesheretowithrespecttothematterscoveredherein.andspecifically,theEmploymentAgreementbetweentheCompanyandtheExecutivedated9thdayofJuly,2001isterminatedasoftheEffectiveDateofthisAgreement.EachpartytothisAgreementacknowledgesthatnorepresentations,inducements,promises,oragreements,oralorotherwise,havebeenmadebyanyparty,oranyoneactingonbehalfofanyparty,whicharenotembodiedherein,andthatnootheragreement,statement,orpromiserelatingtothematterscoveredhereinandnotcontainedinthisAgreementshallbevalidorbinding.ThisAgreementmaynotbemodifiedoramendedbyoralagreement,butonlybyanyagreementinwritingsignedbytheCompanyandtheExecutive.

16. Attorney’s Fees : If any action, including arbitration, is brought to enforce this Agreement or to determine the relative rights and obligations ofeitherofthepartiesandarulingisobtainedinfavorofeitherparty,regardlessofwhichpartyinstitutestheaction,theprevailingpartywillbeentitledtoreasonableattorney’sfees.

INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementasofthedayandyearfirstabovewritten.

“COMPANY” “EXECUTIVE”

WD-40COMPANY

By /s/GARRYO.RIDGE /s/WILLIAMB.NOBLEGARRYO.RIDGE,President&CEO WILLIAMB.NOBLE,Executive

By /s/MARIAM.MITCHELLMARIAM.MITCHELL,Secretary

E xhibit 10( u )

CREDITAGREEMENT

DatedasofJune17,2011

among

WD-40COMPANY,

THEGUARANTORSIDENTIFIEDHEREIN,

BANKOFAMERICA,N.A.,asLender

TABLEOFCONTENTS

ARTICLEIDEFINITIONSANDACCOUNTINGTERMS 1

1.01 DefinedTerms 11.02 OtherInterpretiveProvisions 171.03 AccountingTerms 171.04 Rounding 181.05 TimesofDay 181.06 LetterofCreditAmounts 181.07 ExchangeRates;CurrencyEquivalents 181.08 ChangeofCurrency 19

ARTICLEIITHECOMMITMENTSANDCREDITEXTENSIONS 192.01 Loans 192.02 Borrowings,ConversionsandContinuationsofLoans 192.03 LettersofCredit 202.04 [Reserved] 252.05 Prepayments 252.06 TerminationorReductionofRevolvingCommitment 262.07 RepaymentofLoans 262.08 Interest 262.09 Fees 262.10 ComputationofInterestandFees 272.11 [Reserved] 272.12 PaymentsGenerally 272.13 DesignatedBorrowers 28

ARTICLEIIITAXES,YIELDPROTECTIONANDILLEGALITY 293.01 Taxes 293.02 Illegality 293.03 InabilitytoDetermineRates 303.04 IncreasedCosts 303.05 CompensationforLosses 313.06 MitigationObligations 323.07 Survival 32

ARTICLEIVGUARANTY 324.01 TheGuaranty 324.02 ObligationsUnconditional 324.03 Reinstatement 334.04 CertainAdditionalWaivers 344.05 Remedies 344.06 RightsofContribution 344.07 GuaranteeofPayment;ContinuingGuarantee 344.08 WaiversofOtherRightsandDefenses 354.09 Subordination 35

ARTICLEVCONDITIONSPRECEDENTTOCREDITEXTENSIONS 35

5.01 ConditionsofInitialCreditExtension 355.02 ConditionstoallCreditExtensions 36

ARTICLEVIREPRESENTATIONSANDWARRANTIES 376.01 Existence,QualificationandPower 376.02 Authorization;NoContravention 376.03 GovernmentalAuthorization;OtherConsents 376.04 BindingEffect 386.05 FinancialStatements;NoMaterialAdverseEffect 386.06 Litigation 386.07 NoDefault 396.08 OwnershipofProperty 396.09 EnvironmentalCompliance 396.10 Insurance 396.11 Taxes 396.12 ERISACompliance 406.13 Subsidiaries 406.14 MarginRegulations;InvestmentCompanyAct 406.15 Disclosure 416.16 CompliancewithLaws 416.17 IntellectualProperty;Licenses,Etc. 416.18 Solvency 416.19 BusinessLocations;TaxpayerIdentificationNumber 416.20 LaborMatters 42

ARTICLEVIIAFFIRMATIVECOVENANTS 427.01 FinancialStatements 427.02 Certificates;OtherInformation 427.03 Notices 437.04 PaymentofTaxes 447.05 PreservationofExistence,Etc. 447.06 MaintenanceofProperties 447.07 MaintenanceofInsurance 447.08 CompliancewithLaws 457.09 BooksandRecords 457.10 InspectionRights 457.11 UseofProceeds 457.12 ERISACompliance 457.13 AdditionalSubsidiaries 457.14 ReleaseofLiens 46

ARTICLEVIIINEGATIVECOVENANTS 468.01 Liens 468.02 Investments 478.03 Indebtedness 488.04 FundamentalChanges 488.05 Dispositions 488.06 RestrictedPayments 498.07 ChangeinNatureofBusiness 49

8.08 TransactionswithAffiliatesandInsiders 498.09 BurdensomeAgreements 508.10 UseofProceeds 508.11 FinancialCovenants 508.12 PrepaymentofOtherIndebtedness,Etc. 508.13 OrganizationDocuments;FiscalYear;LegalName,StateofFormationandFormofEntity 518.14 OwnershipofSubsidiaries 518.15 CapitalExpenditures 518.16 SyntheticLeasesandSecuritizationTransactions 51

ARTICLEIXEVENTSOFDEFAULTANDREMEDIES 519.01 EventsofDefault 519.02 RemediesUponEventofDefault 539.03 ApplicationofFunds 54

ARTICLEX[RESERVED] 54

ARTICLEXIMISCELLANEOUS 5411.01 Amendments,Etc. 5411.02 Notices;Effectiveness;ElectronicCommunications 5411.03 NoWaiver;CumulativeRemedies;Enforcement 5511.04 Expenses;Indemnity;andDamageWaiver 5511.05 PaymentsSetAside 5711.06 SuccessorsandAssigns 5711.07 TreatmentofCertainInformation;Confidentiality 5711.08 Set-off 5811.09 InterestRateLimitation 5811.10 Counterparts;Integration;Effectiveness 5811.11 SurvivalofRepresentationsandWarranties 5911.12 Severability 5911.13 ServiceofProcessontheDesignatedBorrowers 5911.14 GoverningLaw 6011.15 DisputeResolution;WaiverofRighttoTrialbyJury. 6011.16 ElectronicExecutionofAssignmentsandCertainOtherDocuments 6211.17 USAPATRIOTActNotice 6211.18 JudgmentCurrency 62

SCHEDULES

1.01MandatoryCost6.13Subsidiaries6.19LoanPartyInformation8.01LiensExistingontheClosingDate8.02InvestmentsExistingontheClosingDate8.03IndebtednessExistingontheClosingDate11.02CertainAddressesforNotices

EXHIBITS

2.02FormofLoanNotice2.13AFormofDesignatedBorrowerRequest2.13BFormofDesignatedBorrowerJoinderAgreement7.02FormofComplianceCertificate7.13FormofJoinderAgreement8.11NotePurchaseAgreementFinancialCovenants

CREDITAGREEMENT

ThisCREDITAGREEMENTisenteredintoasofJune17,2011amongWD-40COMPANY,aDelawarecorporation(the"Company"),certainForeignSubsidiariesoftheCompanypartyheretopursuanttoSection2.13(eacha"DesignatedBorrower"andtogetherwiththeCompany,eacha"Borrower"andcollectivelythe"Borrowers"), theGuarantors(definedherein), andBANKOFAMERICA,N.A., asLender.

TheCompanyhasrequestedthattheLenderprovide$75,000,000increditfacilitiesforthepurposessetforthherein,andtheLenderiswillingtodosoonthetermsandconditionssetforthherein.

Inconsiderationofthemutualcovenantsandagreementshereincontained,thepartiesheretocovenantandagreeasfollows:

ARTICLEI

DEFINITIONSANDACCOUNTINGTERMS

1.01DefinedTerms.

AsusedinthisAgreement,thefollowingtermsshallhavethemeaningssetforthbelow:

"Acquisition", byanyPerson, meansthe acquisitionbysuchPerson, in a single transactionor in a series of relatedtransactions, ofeither(a)all oranysubstantial portionofthepropertyof, oralineofbusinessordivisionof, anotherPersonor(b)at least amajorityoftheVotingStockofanotherPerson,ineachcasewhetherornotinvolvingamergerorconsolidationwithsuchotherPerson.

"Affiliate"means,withrespecttoanyPerson,anotherPersonthatdirectly,orindirectlythroughoneormoreintermediaries,ControlsorisControlledbyorisundercommonControlwiththePersonspecified.

"Agreement"meansthisCreditAgreement.

"AlternativeCurrency"meanseachcurrency(otherthanDollars)thatisagreedtobytheLenderandtheCompany.

"Alternative Currency Equivalent " means, at any time, with respect to any amount denominated in Dollars, the equivalent amountthereofintheapplicableAlternativeCurrencyasdeterminedbytheLenderatsuchtimeonthebasisoftheSpotRate(determinedinrespectofthemostrecentRevaluationDate)forthepurchaseofsuchAlternativeCurrencywithDollars.

"ApplicableRate"meansthefollowingpercentagesperannum:

LetterofCreditFee PrimeRateLoans LIBORRateLoans CommitmentFee0.90% 0.00% 0.90% 0.15%

"ApplicableTime"means, withrespect toanyborrowingsandpaymentsinanyAlternativeCurrency, thelocal timeintheplaceof

settlement for such Alternative Currency as may be determined by the Lender to be necessary for timely settlement on the relevant date inaccordancewithnormalbankingproceduresintheplaceofpayment.

"ApprovedFund"meansanyFundthatisadministeredormanagedby(a)theLender,(b)anAffiliateoftheLenderor(c)anentityoranAffiliateofanentitythatadministersormanagestheLender.

"AttributableIndebtedness"means,withrespecttoanyPersononanydate ,inrespectofanyCapitalLease,thecapitalizedamountthereofthatwouldappearonabalancesheetofsuchPersonpreparedasofsuchdateinaccordancewithGAAP.

"Availability Period" means the periodfromandincludingthe ClosingDate to the earliest of (a) the Maturity Date, (b) the date ofterminationoftheRevolvingCommitmentpursuanttoSection2.06,and(c)thedateofterminationoftheRevolvingCommitmentpursuanttoSection9.02.

"Borrowers"meanstheCompanyandtheDesignatedBorrowers,and"Borrower"meansanyoneofthem.

"Borrowing"meansaborrowingofLoansmadebytheLenderpursuanttoSection2.01.

"BusinessDay"meansanydayotherthanaSaturday,SundayorotherdayonwhichcommercialbanksareauthorizedtocloseundertheLawsof,orareinfactclosedin,NewYork,NewYorkorthestatewheretheLender’sOfficewithrespecttoObligationsdenominatedinDollars is located and: (a) if such day relates to any interest rate settings as to a LIBORRate Loan denominated in Dollars, any fundings,disbursements,settlementsandpaymentsinDollarsinrespectofanysuchLIBORRateLoan,oranyotherdealingsinDollarstobecarriedoutpursuanttothisAgreementinrespectofanysuchLIBORRateLoan,meansanysuchdaythatisalsoaLondonBankingDay;(b)ifsuchdayrelatestoanyinterestratesettingsastoaLIBORRateLoandenominatedinEuro,anyfundings,disbursements, settlementsandpaymentsinEuroinrespectofanysuchLIBORRateLoan,oranyotherdealingsinEurotobecarriedoutpursuanttothisAgreementinrespectofanysuchLIBORRateLoan, meansa TARGETDay; (c) if suchdayrelates to anyinterest rate settingsas to aLIBORRateLoandenominatedin acurrencyotherthanDollarsorEuro,meansanysuchdayonwhichdealingsindepositsintherelevantcurrencyareconductedbyandbetweenbanksintheLondonorotherapplicableoffshoreinterbankmarketforsuchcurrency;and(d)ifsuchdayrelatestoanyfundings,disbursements,settlements and payments in a currency other than Dollars or Euro in respect of a LIBORRate Loan denominated in a currency other thanDollarsorEuro,oranyotherdealingsinanycurrencyotherthanDollarsorEurotobecarriedoutpursuanttothisAgreementinrespectofanysuchLIBORRateLoan(otherthananyinterestratesettings),meansanysuchdayonwhichbanksareopenforforeignexchangebusinessintheprincipalfinancialcenterofthecountryofsuchcurrency.

"CapitalLease"means,asappliedtoanyPerson,anyleaseofanypropertybythatPersonaslesseewhich,inaccordancewithGAAP,isrequiredtobeaccountedforasacapitalleaseonthebalancesheetofthatPerson.

"CashCollateralize"hasthemeaningspecifiedinSection2.03(f)(ii).

"Cash Equivalents "means, as at any date, investments made subject to the investment policy of the Company as in effect on theClosingDateorasubsequentinvestmentpolicyoftheCompanyasapprovedbytheLender.

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"ChangeinLaw"meanstheoccurrence,aftertheClosingDate,ofanyofthefollowing:(a)theadoptionortakingeffectofanylaw,

rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation orapplication thereof by anyGovernmental Authority or (c) the makingor issuance of anyrequest, rule, guideline or directive (whether or nothaving the force of law) by any Governmental Authority;providedthat notwithstanding anything herein to the contrary, (x) the Dodd-FrankWallStreetReformandConsumerProtectionActandallrequests,rules,guidelinesordirectivesthereunderorissuedinconnectiontherewithand (y) all requests, rules, guidelines or directives promulgated by the Bank for International settlements, the Basel Committee on BankingSupervision(oranysuccessororsimilarauthority)ortheUnitedStatesregulatoryauthorities,ineachcasepursuanttoBaselIII,shallineachcasebedeemedtobea"ChangeinLaw",regardlessofthedateenacted,adoptedorissued.

"ChangeofControl"meansaneventorseriesofeventsbywhich:

( a ) any " person " or " group " (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity astrustee,agentorotherfiduciaryoradministratorofanysuchplan)becomesthe"beneficialowner"(asdefinedinRules13d-3and13d-5undertheSecuritiesExchangeActof1934,exceptthatapersonorgroupshallbedeemedtohave"beneficialownership"ofallEquityIntereststhatsuchpersonorgrouphastherighttoacquire,whethersuchrightisexercisableimmediatelyoronlyafterthepassageoftime(suchright,an"optionright")),directlyorindirectly,of25%ormoreoftheEquityInterestsoftheCompanyentitledtovoteformembersoftheboardofdirectorsorequivalentgoverningbodyoftheCompanyonafullydilutedbasis(andtakingintoaccountallsuchsecuritiesthatsuchpersonorgrouphastherighttoacquirepursuanttoanyoptionright);

( b ) during any period of 24 consecutive months, a majority of the members of the board of directors or other equivalentgoverningbodyoftheCompanyceasetobecomposedofindividuals(i)whoweremembersofthatboardorequivalentgoverningbodyonthefirstdayofsuchperiod,(ii)whoseelectionornominationtothatboardorequivalentgoverningbodywasapprovedbyindividualsreferred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalentgoverning body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individualsreferred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board orequivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, orassumptionofofficeas,amemberofthatboardorequivalentgoverningbodyoccursasaresultofanactualorthreatenedsolicitationofproxiesorconsentsfortheelectionorremovalofoneormoredirectorsbyanypersonorgroupotherthanasolicitationfortheelectionofoneormoredirectorsbyoronbehalfoftheboardofdirectors);

( c ) the passage of thirty days from the date upon which any Person or two or more Persons acting in concert shall haveacquiredbycontractorotherwise,orshallhaveenteredintoacontractorarrangementthat,uponconsummationthereof,willresultinitsor their acquisition of the power to exercise, directly or indirectly, a controlling influence over the management or policies of theCompany,orcontrolovertheVotingStockoftheCompanyonafully-dilutedbasis(andtakingintoaccountallsuchVotingStockthatsuchPersonorgrouphastherighttoacquirepursuanttoanyoptionright)representing25%ormoreofthecombinedvotingpowerofsuchVotingStock;or

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(d) the Company fails to own and control, directly or indirectly, 100% of the outstanding Equity Interests (other than (i)

directors' qualifying shares and (ii) shares issued to foreign nationals to the extent required by applicable Law) of the DesignatedBorrowers.

"ClosingDate"meansJune17,2011.

"Commitment"meanstheRevolvingCommitment.

"Company"hasthemeaningspecifiedintheintroductoryparagraphhereto.

"ComplianceCertificate"meansacertificatesubstantiallyintheformofExhibit7.02.

"ConsolidatedCapitalExpenditures"means,foranyperiod,fortheCompanyanditsSubsidiariesonaconsolidatedbasis,allcapitalexpendituresbutexcludingexpenditurestotheextentmadewiththeproceedsofanyInvoluntaryDispositionusedtopurchasepropertythatisusefulinthebusinessoftheCompanyanditsSubsidiaries.

"ConsolidatedEBITDA" means, for any period, for the Company and its Subsidiaries on a consolidated basis, an amount equal toConsolidated Net Income for such period plus the following to the extent deducted in calculating such Consolidated Net Income: (a)ConsolidatedInterestChargesforsuchperiod,(b)theprovisionforfederal,state,localandforeignincometaxespayableforsuchperiod,(c)theamountofdepreciationandamortizationexpenseforsuchperiodand(d)anyimpairmentchargesrelatedtogoodwillandotherintangibleassets.

"ConsolidatedInterestCharges"means,foranyperiod,fortheCompanyanditsSubsidiariesonaconsolidatedbasis,anamountequalto the sum of (a) all interest, premium payments, debt discount, fees, charges and related expenses in connection with borrowed money(including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest inaccordance with GAAP, plus (b) the portion of rent expense with respect to such period under Capital Leases that is treated as interest inaccordancewithGAAP.

"Consolidated Net Income "means, for any period, for the Company and its Subsidiaries on a consolidated basis, the net income(excludingextraordinarygains)forthatperiod.

"ContractualObligation"means,astoanyPerson,anyprovisionofanysecurityissuedbysuchPersonorofanyagreement,instrumentorotherundertakingtowhichsuchPersonisapartyorbywhichitoranyofitspropertyisbound.

"Control"meansthepossession,directlyorindirectly,ofthepowertodirectorcausethedirectionofthemanagementorpoliciesofaPerson, whether through the ability to exercise voting power, by contract or otherwise. "Controlling " and "Controlled " have meaningscorrelativethereto.Withoutlimitingthegeneralityoftheforegoing,aPersonshallbedeemedtobeControlledbyanotherPersonifsuchotherPersonpossesses,directlyorindirectly,powertovote10%ormoreofthesecuritieshavingordinaryvotingpowerfortheelectionofdirectors,managinggeneralpartnersortheequivalent.

"CreditExtension"meanseachofthefollowing:(a)aBorrowingand(b)anL/CCreditExtension.

" Debtor Relief Laws " means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy,assignmentforthebenefitofcreditors,moratorium,rearrangement,receivership,insolvency,reorganization,orsimilardebtorreliefLawsoftheUnitedStatesorotherapplicablejurisdictionsfromtimetotimeineffectandaffectingtherightsofcreditorsgenerally.

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"Default"meansanyeventorconditionthatconstitutesanEventofDefaultorthat,withthegivingofanynotice,thepassageoftime,orboth,wouldbeanEventofDefault.

"DefaultRate"means(a)withrespecttoObligationsotherthanLetterofCreditFees,aratewhichis4.0% perannumhigherthantherateofinterest(includinganyMandatoryCost)otherwise providedunder this Agreement and(b) whenusedwith respect to Letter of CreditFees,aratewhichis4.0%perannumhigherthantheApplicableRate.

"DesignatedBorrower"hasthemeaningspecifiedintheintroductoryparagraphhereto.

"DesignatedBorrowerJoinderAgreement"hasthemeaningspecifiedinSection2.13.

"DesignatedBorrowerRequest"hasthemeaningspecifiedinSection2.13.

"Disposition " or " Dispose " means the sale, transfer, license, lease or other disposition of any property by the Company or anySubsidiary,includinganysale,assignment,transferorotherdisposal,withorwithoutrecourse,ofanynotesoraccountsreceivableoranyrightsandclaimsassociatedtherewith,butexcludinganyInvoluntaryDisposition.

"Dollar"and"$"meanlawfulmoneyoftheUnitedStates.

"DollarEquivalent"means,atanytime,(a)withrespecttoanyamountdenominatedinDollars,suchamount,and(b)withrespecttoanyamountdenominatedinanyAlternativeCurrency,theequivalentamountthereofinDollarsasdeterminedbytheLenderatsuchtimeonthebasisoftheSpotRate(determinedinrespectofthemostrecentRevaluationDate)forthepurchaseofDollarswithsuchAlternativeCurrency.

"Domestic Subsidiary "means any Subsidiary that is organized under the laws of any state of theUnited States or theDistrict ofColumbia.

"EligibleAssignee"means(a)anAffiliateoftheLender;(b)anApprovedFund;and(c)anyotherPerson(otherthananaturalperson)approvedbytheCompany(suchapprovalnottobeunreasonablywithheldordelayed);providedthatnosuchapprovalshallberequiredifanEventofDefaulthasoccurredandiscontinuing.

"EMULegislation"meansthelegislativemeasuresoftheEuropeanCouncil fortheintroductionof, changeovertooroperationofasingleorunifiedEuropeancurrency.

"EnvironmentalLaws"meansanyandallfederal,state,local,foreignandotherapplicablestatutes,laws,regulations,ordinances,rules,judgments,orders,decrees,permits,concessions,grants,franchises,licenses,agreementsorgovernmentalrestrictionsrelatingtopollutionandtheprotectionoftheenvironmentorthereleaseofanymaterialsintotheenvironment,includingthoserelatedtohazardoussubstancesorwastes,airemissionsanddischargestowasteorpublicsystems.

"Environmental Liability"means any liability, contingent or otherwise (including any liability for damages, costs of environmentalremediation,fines,penaltiesorindemnities),oftheCompanyoranySubsidiarydirectlyorindirectlyresultingfromorbasedupon(a)violationof any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c)exposuretoanyHazardousMaterials,(d)thereleaseorthreatenedreleaseofanyHazardousMaterialsinto

5

theenvironmentor(e)anycontract,agreementorotherconsensualarrangementpursuanttowhichliabilityisassumedorimposedwithrespecttoanyoftheforegoing.

"EquityInterests"means,withrespecttoanyPerson,allofthesharesofcapitalstockof(orotherownershiporprofitinterestsin)suchPerson, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or otherownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or otherownershiporprofitinterestsin)suchPersonorwarrants,rightsoroptionsforthepurchaseoracquisitionfromsuchPersonofsuchshares(orsuchotherinterests),andalloftheotherownershiporprofitinterestsinsuchPerson(includingpartnership,memberortrustintereststherein),whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date ofdetermination.

"ERISA"meanstheEmployeeRetirementIncomeSecurityActof1974.

"ERISAAffiliate" means any trade or business (whether or not incorporated) under commoncontrol with theCompanywithinthemeaning of Section 414(b) or (c) of the Internal Revenue Code (and Sections 414(m) and (o) of the Internal Revenue Code for purposes ofprovisionsrelatingtoSection412oftheInternalRevenueCode).

"ERISA Event " means (a) a Reportable Event with respect to a Pension Plan; (b) the withdrawal of theCompany or any ERISAAffiliatefromaPensionPlansubjecttoSection4063ofERISAduringaplanyearinwhichsuchentitywasasubstantialemployer(asdefinedinSection4001(a)(2)ofERISA)oracessationofoperationsthatistreatedassuchawithdrawalunderSection4062(e)ofERISA;(c)acompleteorpartial withdrawal by the Company or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is inreorganization;(d)thefilingofanoticeofintenttoterminate,thetreatmentofaPensionPlanamendmentasaterminationunderSection4041or4041A of ERISA, (e) the institution by the PBGCof proceedings to terminate a Pension Plan; (f) any event or condition which constitutesgrounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (g) thedeterminationthatanyPensionPlanisconsideredanat-riskplanoraplaninendangeredorcriticalstatuswithinthemeaningofSections430,431and432oftheInternalRevenueCodeorSections303,304and305ofERISAor(h)theimpositionofanyliabilityunderTitleIVofERISA,otherthanforPBGCpremiumsduebutnotdelinquentunderSection4007ofERISA,upontheCompanyoranyERISAAffiliate.

"Euro"and"EUR"meanthelawfulcurrencyoftheParticipatingMemberStatesintroducedinaccordancewiththeEMULegislation.

"EventofDefault"hasthemeaningspecifiedinSection9.01.

"ForeignSubsidiary"meansanySubsidiarythatisnotaDomesticSubsidiary.

"FRB"meanstheBoardofGovernorsoftheFederalReserveSystemoftheUnitedStates.

" Fund " means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwiseinvestingincommercialloansandsimilarextensionsofcreditintheordinarycourseofitsactivities.

"GAAP" means generally accepted accounting principles in theUnitedStatesset forth in the opinions and pronouncements of theAccountingPrinciplesBoardandtheAmericanInstituteofCertified

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PublicAccountantsandstatementsandpronouncementsoftheFinancialAccountingStandardsBoard,consistentlyappliedandasineffectfromtimetotime.

"Governmental Authority " means the government of the United States or any other nation, or of any political subdivision thereof,whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,legislative,judicial,taxing,regulatoryoradministrativepowersorfunctionsoforpertainingtogovernment(includinganysupra-nationalbodiessuchastheEuropeanUnionortheEuropeanCentralBank).

"Guarantee"means,astoanyPerson,(a)anyobligation,contingentorotherwise,ofsuchPersonguaranteeingorhavingtheeconomiceffect of guaranteeinganyIndebtednessor otherobligationpayableor performablebyanotherPerson(the"primaryobligor") inanymanner,whetherdirectlyorindirectly,andincludinganyobligationofsuchPerson,directorindirect,(i)topurchaseorpay(oradvanceorsupplyfundsforthepurchaseorpaymentof)suchIndebtednessorotherobligation,(ii)topurchaseorleaseproperty,securitiesorservicesforthepurposeofassuringtheobligeeinrespectofsuchIndebtednessorotherobligationofthepaymentorperformanceofsuchIndebtednessorotherobligation,(iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of incomeor cash flowof theprimaryobligorsoastoenabletheprimaryobligortopaysuchIndebtednessorotherobligation,or(iv)enteredintoforthepurposeofassuringinanyothermannertheobligeeinrespectof suchIndebtednessorotherobligationofthepaymentorperformancethereofortoprotect suchobligeeagainst loss inrespect thereof (in wholeor in part), or (b) anyLienonanyassets of suchPersonsecuringanyIndebtedness or otherobligation of any other Person, whether or not such Indebtedness or other obligation is assumedby such Person (or any right, contingent orotherwise,ofanyholderofsuchIndebtednesstoobtainanysuchLien).TheamountofanyGuaranteeshallbedeemedtobeanamountequaltothestatedordeterminableamountoftherelatedprimaryobligation, or portionthereof, inrespect ofwhichsuchGuaranteeis madeor, if notstated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in goodfaith.Theterm"Guarantee"asaverbhasacorrespondingmeaning.

"Guarantors"meanseachDomesticSubsidiaryoftheCompanyidentifiedasa"Guarantor"onthesignaturepagesheretoandeachother Person that joins as a Guarantor pursuant toSection7.13or otherwise, together with their successors and permitted assigns and,withrespecttoObligationsowingbytheDesignatedBorrowers,theCompany.

"Guaranty"meanstheGuarantymadebytheGuarantorsinfavoroftheLenderandtheotherholdersoftheObligationspursuanttoArticleIV.

"HazardousMaterials"meansallexplosiveorradioactivesubstancesorwastesandallhazardousortoxicsubstances,wastesorotherpollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,infectiousormedicalwastesandallothersubstancesorwastesofanynatureregulatedpursuanttoanyEnvironmentalLaw.

"HonorDate"hasthemeaningsetforthinSection2.03(c).

"Indebtedness" means, as to any Person at a particular time, without duplication, all of the following, whether or not included asindebtednessorliabilitiesinaccordancewithGAAP:

( a ) all obligations for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loanagreementsorothersimilarinstruments;

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( b ) the maximum amount available to be drawn under letters of credit (including standby and commercial), bankers '

acceptances,bankguaranties,suretybondsandsimilarinstruments;

(c)theSwapTerminationValueofanySwapContract;

( d ) all obligations to pay the deferred purchase price of property or services (other than trade accounts payable in theordinarycourseofbusiness;

( e ) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by suchPerson (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtednessshallhavebeenassumedbysuchPersonorislimitedinrecourse;

(f)allAttributableIndebtedness;

(g)allGuaranteesofsuchPersoninrespectofanyoftheforegoing;and

( h ) all Indebtedness of the types referred to in clauses (a) through ( g ) above of any partnership or joint venture (otherthanajointventurethatisitselfacorporationorlimitedliabilitycompany)inwhichsuchPersonisageneralpartnerorjointventurer,unlesssuchIndebtednessisexpresslymadenon-recoursetosuchPerson.

"Indemnitees"hasthemeaningspecifiedinSection11.04(b).

"Information"hasthemeaningspecifiedinSection11.07.

"InterestPaymentDate"means(a)astoanyLIBORRateLoan,thelastdayofeachInterestPeriodapplicabletosuchLoanandtheMaturityDate;provided,however,thatifanyInterestPeriodforaLIBORRateLoanexceedsthreemonths,therespectivedatesthatfalleverythree months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to anyPrime Rate Loan, the lastBusinessDayofeachMarch,June,SeptemberandDecemberandtheMaturityDate.

"Interest Period" means, as to eachLIBORRate Loan, the period commencing on the date suchLIBORRateLoanis disbursedorconverted to or continued as aLIBORRate Loan and ending on the date twoweeks, or one, two, three, six or twelvemonthsthereafter,asselectedbytheapplicableBorrowerinitsLoanNotice.ThefirstdayofanInterestPeriodmustbeaBusinessDay.ThelastdayoftheInterestPeriodandtheactualnumberofdaysduringtheInterestPeriodwillbedeterminedbytheLenderusingthepracticesoftheLondoninter-bankmarket.

"InternalRevenueCode"meanstheInternalRevenueCodeof1986.

"Investment"means,astoanyPerson,anydirectorindirectacquisitionorinvestmentbysuchPerson,whetherbymeansof(a)thepurchaseorotheracquisitionofEquityInterestsofanotherPerson,(b)aloan,advanceorcapitalcontributionto, Guaranteeorassumptionofdebt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, or (c) an Acquisition. Forpurposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequentincreasesordecreasesinthevalueofsuchInvestment.

"InvoluntaryDisposition"meansanylossof,damagetoordestructionof,oranycondemnationorothertakingforpublicuseof,anypropertyoftheCompanyoranySubsidiary.

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"IPRights"hasthemeaningspecifiedinSection6.17.

"IRS"meanstheUnitedStatesInternalRevenueService.

"ISP"means,withrespecttoanyLetterofCredit,the"InternationalStandbyPractices1998"publishedbytheInstituteofInternationalBankingLaw&Practice,Inc.(orsuchlaterversionthereofasmaybeineffectatthetimeofissuance).

"IssuerDocuments"meanswithrespecttoanyLetterofCredit,theLetterofCreditApplication,andanyotherdocument,agreementandinstrumententeredintobytheLenderandtheCompany(oranySubsidiary)orinfavoroftheLenderandrelatingtosuchLetterofCredit.

"JoinderAgreement"meansajoinderagreementsubstantiallyintheformofExhibit7.13executedanddeliveredbyaSubsidiaryinaccordancewiththeprovisionsofSection7.13.

"Laws"means,collectively,allinternational,foreign,federal,stateandlocalstatutes,treaties,rules,guidelines,regulations,ordinances,codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any GovernmentalAuthority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties,requests,licenses,authorizationsandpermitsof,andagreementswith,anyGovernmentalAuthority,ineachcasewhetherornothavingtheforceoflaw.

"L/CCreditExtension"means,withrespecttoanyLetterofCredit,theissuancethereoforextensionoftheexpirydatethereof,ortheincreaseoftheamountthereof.

"L/CObligations"means,asatanydateofdetermination,theaggregateamountavailabletobedrawnunderalloutstandingLettersofCredit plus the aggregate of all Unreimbursed Amounts, including all unreimbursed drawings under all Letters of Credit . For purposes ofcomputingtheamountavailabletobedrawnunderanyLetterofCredit,theamountofsuchLetterofCreditshallbedeterminedinaccordancewithSection1.06. For all purposes of this Agreement, if on anydate of determination a Letter of Credit has expired byits termsbut anyamount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be"outstanding"intheamountsoremainingavailabletobedrawn.

"Lender"meansBankofAmerica,N.A.anditssuccessorsandassigns.

" Lender 's Office " means, with respect to any currency, the Lender’s address and, as appropriate, account as set forth onSchedule11.02withrespecttosuchcurrency,orsuchotheraddressoraccountwithrespecttosuchcurrencyastheLendermayfromtimetotimenotifytotheCompany.

"Letter of Credit " means any standby letter of credit issued hereunder. Letters of Credit may be denominated in Dollars or in anAlternativeCurrency.

"LetterofCreditApplication"meansanapplicationandagreementfortheissuanceoramendmentofaletterofcreditintheformfromtimetotimeinusebytheLender.

"LetterofCreditExpirationDate"meansthedatethatistwelvemonthsaftertheMaturityDate.

"LetterofCreditFee"hasthemeaningspecifiedinSection2.03(h).

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"LetterofCreditSublimit"meansanamountequaltothelesserof(a)theRevolvingCommitmentand(b)$10,000,000.TheLetterof

CreditSublimitispartof,andnotinadditionto,theRevolvingCommitment.

"LIBORRate"meansforanyInterestPeriodwithrespecttoanyLIBORRateLoan,arateperannumdeterminedbytheLendertobeequaltothequotientobtainedbydividing(i)theLondonInterbankOfferedRateforsuchLIBORRateLoanforsuchInterestPeriodby(ii)oneminustheLIBORReservePercentageforsuchLIBORRateLoanforsuchInterestPeriod.

"LIBORRateLoan"meansaLoanthatbearsinterestataratebasedontheLIBORRate.LIBORRateLoansmaybedenominatedinDollarsorinanAlternativeCurrency.AllLoansdenominatedinanAlternativeCurrencymustbeLIBORRateLoans.

"LIBORReservePercentage"means,foranydayduringanyInterestPeriod,thereservepercentage(expressedasadecimal,carriedouttofivedecimalplaces)ineffectonsuchday,whetherornotapplicabletotheLender,underregulationsissuedfromtimetotimebytheFRBfordeterminingthemaximumreserverequirement(includinganyemergency,supplementalorothermarginalreserverequirement)withrespecttoLondonInterbankOfferedRatefunding(currentlyreferredtoas"LIBORliabilities").TheLIBORRateforeachoutstandingLIBORRateLoanshallbeadjustedautomaticallyasoftheeffectivedateofanychangeintheLIBORReservePercentage.

"Lien" means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or otherwise),charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or naturewhatsoever(includinganyconditionalsaleorothertitleretentionagreement,anyeasement,rightofwayorotherencumbranceontitletorealproperty,andanyfinancingleasehavingsubstantiallythesameeconomiceffectasanyoftheforegoing).

"Loan"meansanextensionofcreditbytheLendertoaBorrowerunderArticleIIintheformofaRevolvingLoan.

"Loan Documents " means (a) this Agreement, (b) each Note, (c) each Issuer Document, (d) each Joinder Agreement , ( e ) eachDesignatedBorrowerJoinderAgreement;and(f)anyagreementcreatingorperfectingrightsinCashCollateral.

"LoanNotice"meansanoticeof(a)aBorrowingofRevolvingLoans,(b)aconversionofRevolvingLoansfromoneTypetotheother,or(c)acontinuationofLIBORRateLoans,ineachcasepursuanttoSection2.02(a),which,ifinwriting,shallbesubstantiallyintheformofExhibit2.02.

"LoanParties"means,collectively,eachBorrowerandeachGuarantor.

"LondonBankingDay"meansadayonwhichbanksinLondonareopenforbusinessanddealinginoffshoreDollars.

"LondonInterbankOfferedRate"meansforanyInterestPeriodwithrespecttoaLIBORRateLoan,therateperannumequalto(i)the British Bankers Association LIBORRate ("BBALIBOR"), as published by Reuters (or other commercially available source providingquotationsofBBALIBORasdesignatedbytheLenderfromtimetotime)atapproximately11:00a.m.,Londontime,twoBusinessDayspriortothecommencementofsuchInterestPeriod,fordepositsintherelevantcurrency(fordeliveryonthefirstdayofsuchInterestPeriod)withatermequivalent to such Interest Period or (ii) if such published rate is not available at such time for any reason, the rate determined by theLendertobetherateatwhich

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deposits in the relevant currency for delivery on the first day of such Interest Period inSameDayFunds in the approximate amount of theLIBORRateLoanbeingmade,continuedorconvertedbytheLenderandwithatermequivalenttosuchInterestPeriodwouldbeofferedbytheLender's LondonBranch(orotherbranchorAffiliate) tomajorbanksintheLondonorotheroffshoreinterbankmarketforsuchcurrencyattheirrequestatapproximately11:00a.m.(Londontime)twoBusinessDayspriortothecommencementofsuchInterestPeriod.

"MandatoryCost"means,withrespecttoanyperiod,thepercentagerateperannumdeterminedinaccordancewithSchedule1.01.

"Material Adverse Effect " means (a) a material adverse change in, or a material adverse effect upon, the operations, business,properties,liabilitiesorcondition(financialorotherwise)oftheCompanyanditsSubsidiariestakenasawhole;(b)amaterialimpairmentoftheabilityofanyLoanPartytoperformitsobligationsunderanyLoanDocumenttowhichitisaparty;or(c)amaterialadverseeffectuponthelegality,validity,bindingeffectorenforceabilityagainstanyLoanPartyofanyLoanDocumenttowhichitisaparty.

"MaturityDate"meansJune17,2014;provided,however,thatifsuchdateisnotaBusinessDay,theMaturityDateshallbethenextprecedingBusinessDay.

"Moody's"meansMoody'sInvestorsService,Inc.andanysuccessorthereto.

"MultiemployerPlan"meansanyemployeebenefitplanofthetypedescribedinSection4001(a)(3)ofERISA,towhichtheCompanyoranyERISAAffiliatemakesorisobligatedtomakecontributions,orduringtheprecedingfiveplanyears,hasmadeorbeenobligatedtomakecontributions.

"MultipleEmployerPlan"meansaPlanwhichhastwoormorecontributingsponsors(includingtheCompanyoranyERISAAffiliate)atleasttwoofwhomarenotundercommoncontrol,assuchaplanisdescribedinSection4064ofERISA.

"Note"meansanypromissorynotemadebyaBorrowerinfavoroftheLendertoevidencetheLoans."NotePurchaseAgreement"meanstheNotePurchaseandPrivateShelfAgreementdatedOctober18,2001executedbytheCompany

asacceptedbyThePrudentialInsuranceCompanyofAmerica.

"Note Purchase Agreement Termination Date " means the earlier to occur of (a) October 18, 2011 and (b ) the date that (i) alloutstandingnotesandotherobligationsarisingundertheNotePurchaseAgreementhavebeenpaid-in-full,(ii)theNotePurchaseAgreementhasbeenterminatedand(iii)allcollateralsecuringtheCompany'sobligationswithrespecttotheNotePurchaseAgreement)havebeenreleased.

"Obligations"meansalladvancesto,anddebts,liabilities,obligations,covenantsanddutiesof,anyLoanPartyarisingunderanyLoanDocument or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption),absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after thecommencementbyoragainstanyLoanPartyoranyAffiliatethereofofanyproceedingunderanyDebtorReliefLawsnamingsuchPersonasthe debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. The foregoing shall alsoinclude(a)allobligationsunderanySwapContractbetweenanyLoanPartyoranySubsidiaryandtheLenderoranyAffiliateoftheLenderand(b)allobligationsunderanyTreasuryManagementAgreementbetweenanyLoanPartyoranySubsidiaryandtheLenderoranyAffiliateoftheLender.

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"OrganizationDocuments" means, (a) withrespect to anycorporation, thecertificate or articles of incorporationandthebylaws(orequivalentorcomparableconstitutivedocumentswithrespecttoanynon-U.S.jurisdiction);(b)withrespecttoanylimitedliabilitycompany,thecertificateorarticlesofformationororganizationandoperatingorlimitedliabilitycompanyagreement;and(c)withrespecttoanypartnership,jointventure,trustorotherformofbusinessentity,thepartnership,jointventureorotherapplicableagreementofformationororganizationandany agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicableGovernmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation ororganizationofsuchentity.

"OutstandingAmount"means(a)withrespecttoanyLoansonanydate,theDollarequivalentoftheaggregateoutstandingprincipalamountthereofaftergivingeffecttoanyborrowingsandprepaymentsorrepaymentsofanyLoansoccurringonsuchdate;and(b)withrespecttoanyL/CObligationsonanydate,theDollarequivalentoftheamountofsuchL/CObligationsonsuchdateaftergivingeffecttoanyL/CCreditExtensionoccurringonsuchdateandanyotherchangesintheaggregateamountoftheL/CObligationsasofsuchdate,includingasaresultofanyreimbursementsbyaBorrowerofdrawingsunderLettersofCredit.

"ParticipatingMemberState"meanseachstatesodescribedinanyEMULegislation.

"PBGC"meansthePensionBenefitGuarantyCorporationoranysuccessorthereto.

"PensionAct"meansthePensionProtectionActof2006.

" Pension Funding Rules " means the rules of the Internal Revenue Code and ERISA regarding minimum required contributions(includinganyinstallmentpaymentthereof)toPensionPlansandsetforthin,withrespecttoplanyearsendingpriortotheeffectivedateofthePensionAct, Section412oftheInternalRevenueCodeandSection302ofERISA,eachasineffectpriortothePensionActand,thereafter,Section412,430,431,432and436oftheInternalRevenueCodeandSections302,303,304and305ofERISA.

" Pension Plan " means any employee pension benefit plan (including a Multiple Employer Plan or a Multiemployer Plan) that ismaintained or is contributed to by theCompany and any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to theminimumfundingstandardsunderSection412oftheInternalRevenueCode.

" Permitted Acquisition " means an Investment consisting of an Acquisition by any Loan Party, provided that ( a ) the propertyacquired(orthepropertyofthePersonacquired)insuchAcquisitionisusedorusefulinthesameorasimilarlineofbusinessastheCompanyanditsSubsidiarieswereengagedinontheClosingDate(oranyreasonableextensionsorexpansionsthereof),(b)inthecaseofanAcquisitionof the Equity Interests of another Person, the board of directors (or other comparable governing body) of such other Person shall have dulyapprovedsuchAcquisition,(c)theCompanyshallhavedeliveredtotheLenderaProFormaComplianceCertificatedemonstratingthat,upongivingeffecttosuchAcquisition,theLoanPartieswouldbeincompliancewiththefinancialcovenantssetforthinSection8.11onaProFormaBasis,(d)therepresentationsandwarrantiesmadebytheLoanPartiesineachLoanDocumentshallbetrueandcorrectinallmaterialrespectsatandasifmadeasofthedateofsuchAcquisition(aftergivingeffectthereto),(e)ifsuchtransactioninvolvesthepurchaseofaninterestinapartnershipbetweenanyLoanPartyasageneralpartnerandentitiesunaffiliatedwiththeCompanyastheotherpartners,suchtransactionshallbeeffectedbyhavingsuchequityinterestacquiredbyacorporateholdingcompanydirectlyorindirectlywholly‑ownedbysuchLoanPartynewlyformedforthesolepurposeofeffectingsuchtransaction,(f)immediatelyaftergivingeffecttosuchAcquisition,thereshallbeatleast$10,000,000ofthesumof(i)availabilityexistingundertheRevolving

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Commitmentand(ii)unrestrictedcashandCashEquivalentsoftheCompany,and(g)suchPersonorpropertybeingacquiredinsuchAcquisitionhadpositiveEBITDAforthemostrecentlyendedtwelve(12)monthperiodprecedingtheclosingofsuchAcquisition.

"PermittedLiens"means,atanytime,LiensinrespectofpropertyoftheCompanyoranySubsidiarypermittedtoexistatsuchtimepursuanttothetermsofSection8.01.

"PermittedTransfers"means(a) Dispositionsofinventoryintheordinarycourseofbusiness; (b) DispositionsofpropertytotheCompanyoranySubsidiary;provided,thatifthetransferorofsuchpropertyisaLoanPartythenthetransfereethereofmustbeaLoanParty;(c) Dispositionsof accounts receivable in connectionwiththecollectionor compromisethereof; (d) licenses, sublicenses, leasesorsubleasesgrantedtoothersnotinterferinginanymaterialrespectwiththebusinessoftheCompanyanditsSubsidiaries;and(e)thesaleordispositionofCashEquivalentsforfairmarketvalue.

" Person " means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership,GovernmentalAuthorityorotherentity.

"Plan"meansanyemployeebenefit planwithinthemeaningofSection3(3)ofERISA(includingaPensionPlan), maintainedforemployeesoftheCompanyoranyERISAAffiliateoranysuchPlantowhichtheCompanyoranyERISAAffiliateisrequiredtocontributeonbehalfofanyofitsemployees.

"PrimeRate"meanstherateofinterestpubliclyannouncedfromtimetotimebytheLenderasitsPrimeRate.ThePrimeRateissetbytheLenderbasedonvariousfactors,includingtheLender'scostsanddesiredreturn,generaleconomicconditionsandotherfactors,andisusedasareferencepointforpricingsomeloans.TheLendermaypriceloanstoitscustomersat,above,orbelowthePrimeRate.AnychangeinthePrimeRateshalltakeeffectattheopeningofbusinessonthedayspecifiedinthepublicannouncementofachangeintheLender'sPrimeRate.

"PrimeRateLoan"meansaLoanthatbearsinterestbasedonthePrimeRate.PrimeRateLoansshallbedenominatedinDollars.

"ProFormaBasis"means,withrespecttoanytransaction,thatforpurposesofcalculatingthefinancialcovenantssetforthinSection8.11,suchtransactionshallbedeemedtohaveoccurredasofthefirstdayofthemostrecentfourfiscalquarterperiodprecedingthedateofsuchtransactionforwhichfinancialstatementswererequiredtobedeliveredpursuanttoSection7.01(a)or(b).Inconnectionwiththeforegoing,(a)withrespecttoanyDispositionorInvoluntaryDisposition,(i) incomestatementandcashflowstatementitems(whetherpositiveornegative)attributabletothepropertydisposedofshallbeexcludedtotheextentrelatingtoanyperiodoccurringpriortothedateofsuchtransactionand(ii) Indebtedness whichis retiredshall beexcludedanddeemedto havebeenretiredas of the first dayof theapplicable periodand(b) withrespecttoanyAcquisition,(i)incomestatementandcashflowstatementitemsattributabletothePersonorpropertyacquiredshallbeincludedto the extent relating to any period applicable in such calculations to the extent (A) such items are not otherwise included in such incomestatement andcash flowstatement itemsfor theCompanyand its Subsidiaries in accordance with GAAPor in accordance with any definedterms set forth inSection 1.01 and (B) such items are supported by financial statements or other information reasonably satisfactory to theLender and (ii) any Indebtedness incurred or assumed by the Company or any Subsidiary (including the Person or property acquired) inconnection with such transaction and any Indebtedness of the Person or property acquired which is not retired in connection with suchtransaction(A)shallbedeemedtohavebeenincurredasofthefirstdayoftheapplicableperiodand(B)ifsuchIndebtednesshasafloatingorformularate,shallhaveanimpliedrateofinterestfortheapplicableperiodforpurposesofthisdefinitiondeterminedbyutilizingtheratewhichisorwouldbeineffectwithrespecttosuchIndebtednessasattherelevantdateofdetermination.

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" Pro Forma Compliance Certificate " means a certificate of a Responsible Officer of the Company containing reasonably detailedcalculationsofthefinancialcovenantssetforthinSection8.11asoftheendoftheperiodofthefourfiscalquartersmostrecentlyendedforwhichtheCompanyhasdeliveredfinancialstatementspursuanttoSection7.01(a)or(b)aftergivingeffecttotheapplicabletransactiononaProFormaBasis.

"RelatedParties"means, withrespecttoanyPerson,suchPerson'sAffiliatesandthepartners, directors, officers, employees, agents,trusteesandadvisorsofsuchPersonandofsuchPerson'sAffiliates.

"ReportableEvent"meansanyoftheeventssetforthinSection4043(c)ofERISA,otherthaneventsforwhichthethirty-daynoticeperiodhasbeenwaived.

"RequestforCreditExtension"means(a)withrespecttoaBorrowing,conversionorcontinuationofLoans,aLoanNotice,and(b)withrespecttoanL/CCreditExtension,aLetterofCreditApplication.

"ResponsibleOfficer"meansthechiefexecutiveofficer,president,chieffinancialofficer,treasurer,assistanttreasurerorcontrollerofaLoanPartyandanyotherofficeroftheapplicableLoanPartysodesignatedbyanyoftheforegoingofficersinanoticetotheLender.AnydocumentdeliveredhereunderthatissignedbyaResponsibleOfficerofaLoanPartyshallbeconclusivelypresumedtohavebeenauthorizedbyall necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusivelypresumedtohaveactedonbehalfofsuchLoanParty.

"RestrictedPayment"meansanydividendorotherdistribution(whetherincash,securitiesorotherproperty)withrespecttoanyEquityInterestsofanyPerson,oranypayment(whetherincash,securitiesorotherproperty),includinganysinkingfundorsimilardeposit,onaccountofthepurchase,redemption,retirement,defeasance,acquisition,cancellationorterminationofanysuchEquityInterestsoronaccountofanyreturnofcapitaltosuchPerson'sstockholders,partnersormembers(ortheequivalentPersonthereof),oranyoption,warrantorotherrighttoacquireanysuchdividendorotherdistributionorpayment.

"RevaluationDate"means(a)withrespecttoanyLoan,eachofthefollowing:(i)eachdateofaBorrowingofaLIBORRateLoandenominated in an Alternative Currency, (ii) each date of a continuation of a LIBOR Rate Loan denominated in an Alternative CurrencypursuanttoSection2.02, and(iii) suchadditional datesastheLendershall require; and(b)withrespect toanyLetter of Credit, eachofthefollowing:(i)eachdateofissuanceofaLetterofCreditdenominatedinanAlternativeCurrency,(ii)eachdateofanamendmentofanysuchLetterofCredithavingtheeffectofincreasingtheamountthereof(solelywithrespecttotheincreasedamount),(iii)eachdateofanypaymentbytheLenderunderanyLetterofCreditdenominatedinanAlternativeCurrencyand(iv)suchadditionaldatesastheLendershallrequire.

"RevolvingCommitment"meanstheLender'sobligationto(a)makeRevolvingLoanstotheBorrowerspursuanttoSection2.01,and (b) issue Letters of Credit , in an aggregate principal amount at any one time outstanding not to exceed SEVENTY-FIVEMILLIONDOLLARS($75,000,000).

"RevolvingLoan"hasthemeaningspecifiedinSection2.01.

"S&P"meansStandard&Poor'sFinancialServicesLLC,asubsidiaryofTheMcGraw‑HillCompanies,Inc.andanysuccessorthereto.

"SameDayFunds"means(a)withrespecttodisbursementsandpaymentsinDollars,immediatelyavailablefunds,and(b)withrespecttodisbursementsandpaymentsinanAlternativeCurrency,sameday

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orotherfundsasmaybedeterminedbytheLendertobecustomaryintheplaceofdisbursementorpaymentforthesettlementofinternationalbankingtransactionsintherelevantAlternativeCurrency.

"SEC"meanstheSecuritiesandExchangeCommission,oranyGovernmentalAuthoritysucceedingtoanyofitsprincipalfunctions.

"SecuritizationTransaction"means,withrespecttoanyPerson,anyfinancingtransactionorseriesoffinancingtransactions(includingfactoring arrangements) pursuant to which such Person or any Subsidiary of such Person may sell, convey or otherwise transfer, or grant asecurityinterestin,accounts,payments,receivables,rightstofutureleasepaymentsorresidualsorsimilarrightstopaymenttoaspecialpurposesubsidiaryoraffiliateofsuchPerson.

"Solvent"or"Solvency"means,withrespecttoanyPersonasofaparticulardate,thatonsuchdate(a)suchPersonisabletopayitsdebtsandotherliabilities,contingentobligationsandothercommitmentsastheymatureintheordinarycourseofbusiness,(b)suchPersondoesnot intend to, anddoes not believe that it will, incur debts or liabilities beyondsuchPerson's ability to paysuchdebts andliabilities as theymatureintheordinarycourseofbusiness,(c)suchPersonisnotengagedinabusinessoratransaction,andisnotabouttoengageinabusinessoratransaction,forwhichsuchPerson'spropertywouldconstituteunreasonablysmallcapital,(d)thefairvalueofthepropertyofsuchPersonisgreaterthanthetotalamountofliabilities,includingcontingentliabilities,ofsuchPersonand(e)thepresentfairsalablevalueoftheassetsofsuchPersonisnotlessthantheamountthatwillberequiredtopaytheprobableliabilityofsuchPersononitsdebtsastheybecomeabsoluteandmatured.Theamountofcontingentliabilitiesatanytimeshallbecomputedastheamountthat,inthelightofallthefactsandcircumstancesexistingatsuchtime,representstheamountthatcanreasonablybeexpectedtobecomeanactualormaturedliability.

"Special NoticeCurrency"meansat anytimeanAlternativeCurrency,otherthanthecurrencyofacountrythatis amemberoftheOrganizationforEconomicCooperationandDevelopmentatsuchtimelocatedinNorthAmericaorEurope.

"SpotRate"foracurrencymeanstheratequotedbytheLenderasthespotrateforthepurchasebytheLenderofsuchcurrencywithanothercurrencythroughitsprincipalforeignexchangetradingofficeatapproximately11:00a.m.onthedatetwoBusinessDayspriortothedate as of which the foreign exchange computation is made; provided that the Lender may obtain such spot rate from another financialinstitutiondesignatedbytheLenderiftheLenderdoesnothaveasofthedateofdeterminationaspotbuyingrateforanysuchcurrency;andprovidedfurtherthattheLendermayusesuchspotratequotedonthedateasofwhichtheforeignexchangecomputationismadeinthecaseofanyLetterofCreditdenominatedinanAlternativeCurrency.

"Subsidiary"ofaPersonmeansacorporation,partnership,jointventure,limitedliabilitycompanyorotherbusinessentityofwhichamajority of the shares of Voting Stock is at the time beneficially owned, or the management of which is otherwise controlled, directly, orindirectlythroughoneormoreintermediaries,orboth,bysuchPerson.Unlessotherwisespecified,allreferenceshereintoa"Subsidiary"orto"Subsidiaries"shallrefertoaSubsidiaryorSubsidiariesoftheCompany.

"SwapContract" means(a) anyandall rate swaptransactions, basis swaps, credit derivativetransactions, forwardrate transactions,commodityswaps,commodityoptions,forwardcommoditycontracts,equityorequityindexswapsoroptions,bondorbondpriceorbondindexswaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchangetransactions,captransactions,floortransactions,collartransactions,currencyswaptransactions,cross-currencyrateswaptransactions,currencyoptions,spotcontracts,oranyothersimilartransactionsoranycombinationofanyoftheforegoing(includinganyoptionstoenterintoanyofthe

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foregoing),whetherornotanysuchtransactionisgovernedbyorsubjecttoanymasteragreement,and(b)anyandalltransactionsofanykind,andtherelatedconfirmations,whicharesubjecttothetermsandconditionsof,orgovernedby,anyformofmasteragreementpublishedbytheInternationalSwapsandDerivativesAssociation,Inc., anyInternationalForeignExchangeMasterAgreement, oranyothermasteragreement(anysuchmasteragreement,togetherwithanyrelatedschedules,a"MasterAgreement"),includinganysuchobligationsorliabilitiesunderanyMasterAgreement.

"SwapTerminationValue"means,inrespectofanyoneormoreSwapContracts, aftertakingintoaccounttheeffectofanylegallyenforceablenettingagreementrelatingtosuchSwapContracts,(a)foranydateonorafterthedatesuchSwapContractshavebeenclosedoutandterminationvalue(s)determinedinaccordancetherewith,suchterminationvalue(s)and(b)foranydatepriortothedatereferencedinclause(a), theamount(s)determinedasthemark-to-marketvalue(s)forsuchSwapContracts, asdeterminedbasedupononeormoremid-marketorotherreadilyavailablequotationsprovidedbyanyrecognizeddealerinsuchSwapContracts(whichmayincludetheLenderoranyAffiliateoftheLender).

"SyntheticLease"meansanysyntheticlease,taxretentionoperatinglease,off-balancesheetloanorsimilaroff-balancesheetfinancingarrangement wherebythe arrangement is consideredborrowedmoneyindebtedness for tax purposes but is classified as an operatinglease ordoesnototherwiseappearonabalancesheetunderGAAP.

"TARGETDay"meansanydayonwhichtheTrans-EuropeanAutomatedReal-timeGrossSettlementExpressTransfer (TARGET)paymentsystem(or,ifsuchpaymentsystemceasestobeoperative,suchotherpaymentsystem(ifany)determinedbytheLendertobeasuitablereplacement)isopenforthesettlementofpaymentsinEuro.

" Taxes " means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding),assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicablethereto.

"ThresholdAmount"means$1,000,000.

"TotalRevolvingOutstandings"meanstheaggregateOutstandingAmountofallRevolvingLoansandallL/CObligations.

"TreasuryManagementAgreement"meansanyagreementgoverningtheprovisionoftreasuryorcashmanagementservices,includingdeposit accounts, overnight draft, credit or debit cards, funds transfer, automated clearinghouse, zero balance accounts, returned checkconcentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services and other cash managementservices.

"Type"means,withrespecttoanyLoan,itscharacterasaPrimeRateLoanoraLIBORRateLoan.

"UnitedStates"and"U.S."meantheUnitedStatesofAmerica.

"UnreimbursedAmount"hasthemeaningspecifiedinSection2.03(c).

"VotingStock"means,withrespecttoanyPerson,EquityInterestsissuedbysuchPersontheholdersofwhichareordinarily,intheabsenceofcontingencies,entitledtovotefortheelectionofdirectors(orpersonsperformingsimilarfunctions)ofsuchPerson,eventhoughtherightsotovotehasbeensuspendedbythehappeningofsuchacontingency.

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1.02OtherInterpretiveProvisions.

WithreferencetothisAgreementandeachotherLoanDocument,unlessotherwisespecifiedhereinorinsuchotherLoanDocument:

( a ) The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever thecontextmayrequire,anypronounshallincludethecorrespondingmasculine,feminineandneuterforms.Thewords"include,""includes"and"including"shallbedeemedtobefollowedbythephrase"withoutlimitation."Theword"will"shallbeconstruedtohavethesamemeaningandeffectastheword"shall."Unlessthecontextrequiresotherwise,(i)anydefinitionoforreferencetoanyagreement,instrumentorotherdocument(includinganyOrganizationDocument)shallbeconstruedasreferringtosuchagreement,instrumentorotherdocumentasfromtimetotimeamended,supplementedorotherwisemodified(subjecttoanyrestrictionsonsuchamendments,supplementsormodificationssetforthherein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person's successors andassigns,(iii)thewords"herein,""hereof"and"hereunder,"andwordsofsimilarimportwhenusedinanyLoanDocument,shallbeconstruedtorefertosuchLoanDocumentinitsentiretyandnottoanyparticularprovisionthereof,(iv)all referencesinaLoanDocumenttoArticles,Sections,ExhibitsandSchedulesshallbeconstruedtorefertoArticlesandSectionsof,andExhibitsandSchedulesto,theLoanDocumentinwhich such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending,replacingorinterpretingsuchlawandanyreferencetoanylaworregulationshall,unlessotherwisespecified,refertosuchlaworregulationasamended,modifiedorsupplementedfromtimetotime,and(vi)thewords"asset"and"property"shallbeconstruedtohavethesamemeaningandeffectandtorefertoanyandalltangibleandintangibleassetsandproperties,includingcash,securities,accountsandcontractrights.

( b ) In the computation of periods of time from a specified date to a later specified date, the word " from " means " from andincluding;"thewords"to"and"until"eachmean"tobutexcluding;"andtheword"through"means"toandincluding."

( c ) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affecttheinterpretationofthisAgreementoranyotherLoanDocument.

1.03AccountingTerms.

( a ) Generally . Except as otherwise specifically prescribed herein, all accounting terms not specifically or completely definedherein shall be construedin conformity with, and all financial data (includingfinancial ratios andother financial calculations) required to besubmittedpursuanttothisAgreementshallbepreparedinconformitywith,GAAPappliedonaconsistentbasis,asineffectfromtimetotime.

( b )Changes in GAAP . If at any time any change in GAAP would affect the computation of any financial ratio or requirementsetforthinanyLoanDocument,andeithertheCompanyortheLendershallsorequest,theLenderandtheCompanyshallnegotiateingoodfaithtoamendsuchratioorrequirementtopreservetheoriginalintentthereofinlightofsuchchangeinGAAP(subjecttotheapprovaloftheLenderandtheCompany);providedthat,untilsoamended,(i)suchratioorrequirementshallcontinuetobecomputedinaccordancewithGAAPpriortosuchchangethereinand(ii)theCompanyshallprovidetotheLenderfinancialstatementsandotherdocumentsrequiredunderthisAgreementorasreasonablyrequestedhereundersettingforthareconciliationbetweencalculationsofsuchratioorrequirementmadebeforeandaftergivingeffecttosuchchangeinGAAP.

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( c ) Calculations . Notwithstanding the above, the parties hereto acknowledge and agree that all calculations of the financial

covenants inSection8.11shall be made on a Pro FormaBasis with respect to (i)anyDispositionof all of the Equity Interests of, or all orsubstantiallyalloftheassetsof,aSubsidiary,(ii)anyDispositionofalineofbusinessordivisionoftheCompanyorSubsidiary,or(iii)anyAcquisition,ineachcase,occurringduringtheapplicableperiod.

1.04Rounding.

Any financial ratios required to be maintained by the Company pursuant to this Agreement shall be calculated by dividing theappropriatecomponentbytheothercomponent,carryingtheresulttooneplacemorethanthenumberofplacesbywhichsuchratioisexpressedhereinandroundingtheresultupordowntothenearestnumber(witharounding-upifthereisnonearestnumber).

1.05TimesofDay.

Unlessotherwisespecified,allreferenceshereintotimesofdayshallbereferencestoPacifictime(daylightorstandard,asapplicable).

1.06LetterofCreditAmounts.

Unlessotherwisespecifiedherein,theamountofaLetterofCreditatanytimeshallbedeemedtobetheDollarEquivalentofthestatedamountofsuchLetterofCreditineffectatsuchtime;provided,however,thatwithrespecttoanyLetterofCreditthat,byitstermsorthetermsofanyIssuerDocumentrelatedthereto, providesforoneormoreautomaticincreasesinthestatedamountthereof, theamountofsuchLetterofCreditshallbedeemedtobetheDollarEquivalentofthemaximumstatedamountofsuchLetterofCreditaftergivingeffecttoallsuchincreases,whetherornotsuchmaximumstatedamountisineffectatsuchtime.

1.07ExchangeRates;CurrencyEquivalents.

(a) The Lender shall determine the Spot Rates as of each Revaluation Date to be used for calculating Dollar Equivalent amounts ofCredit Extensions and Outstanding Amounts denominated in Alternative Currencies. Such Spot Rates shall become effective as of suchRevaluationDateandshallbetheSpotRatesemployedinconvertinganyamountsbetweentheapplicablecurrenciesuntilthenextRevaluationDatetooccur.ExceptforpurposesoffinancialstatementsdeliveredbyLoanPartieshereunderorcalculatingfinancialcovenantshereunderorexceptasotherwiseprovidedherein,theapplicableamountofanycurrency(otherthanDollars)forpurposesoftheLoanDocumentsshallbesuchDollarEquivalentamountassodeterminedbytheLender.

(b)Wherever in this Agreement in connection with a Borrowing, conversion, continuation or prepayment of aLIBORRateLoanortheissuance,amendmentorextensionofaLetterofCredit,anamount,suchasarequiredminimumormultipleamount,isexpressedinDollars,but such Borrowing, LIBORRate Loan or Letter of Credit is denominated in an Alternative Currency, such amount shall be the relevantAlternative Currency Equivalent of such Dollar amount (rounded to the nearest unit of such Alternative Currency, with 0.5 of a unit beingroundedupward),asdeterminedbytheLender.

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1.08ChangeofCurrency.

(a) Each obligation of a Borrower to make a payment denominated in the national currency unit of any member state of the EuropeanUnion that adopts the Euro as its lawful currency after the date hereof shall be redenominated into Euro at the time of such adoption (inaccordancewiththeEMULegislation).If,inrelationtothecurrencyofanysuchmemberstate,thebasisofaccrualofinterestexpressedinthisAgreement in respect of that currency shall be inconsistent with any convention or practice in the London interbank market for the basis ofaccrual of interest in respect of the Euro, suchexpressedbasis shall be replacedbysuchconventionor practice with effect fromthe date onwhich such member state adopts the Euro as its lawful currency; provided that if any Borrowing in the currency of such member state isoutstandingimmediatelypriortosuchdate, suchreplacementshall takeeffect, withrespecttosuchBorrowing,at theendofthethencurrentInterestPeriod.

(b) Each provision of this Agreement shall be subject to such reasonable changes of construction as the Lender may from time to timespecifytobeappropriatetoreflecttheadoptionoftheEurobyanymemberstateoftheEuropeanUnionandanyrelevantmarketconventionsorpracticesrelatingtotheEuro.

(c) Each provision of this Agreement also shall be subject to such reasonable changes of construction as the Lender may from time totimespecifytobeappropriatetoreflectachangeincurrencyofanyothercountryandanyrelevantmarketconventionsorpracticesrelatingtothechangeincurrency.

ARTICLEII

THECOMMITMENTSANDCREDITEXTENSIONS

2.01Loans.

Subject to the terms and conditions set forth herein, theLender agrees to make loans (each such loan, a "RevolvingLoan") to theBorrowersinDollarsorinoneormoreAlternativeCurrenciesfromtimetotimeonanyBusinessDayduringtheAvailabilityPeriod;provided,however,thataftergivingeffecttoanyBorrowingofRevolvingLoans,(i)theTotalRevolvingOutstandingsshallnotexceedtheRevolvingCommitment.WithinthelimitsoftheRevolvingCommitment,andsubjecttotheothertermsandconditionshereof,theBorrowersmayborrowunderthisSection2.01, prepayunderSection2.05,andreborrowunderthisSection2.01. RevolvingLoansmaybePrimeRateLoansorLIBORRateLoans,asfurtherprovidedherein.

2.02Borrowings,ConversionsandContinuationsofLoans.

( a )Each Borrowing, each conversion of Loans from one Type to the other, and each continuation ofLIBORRate Loans shall bemadeupontheapplicableBorrower'sirrevocablenoticetotheLender,whichmaybegivenbytelephone.EachsuchnoticemustbereceivedbytheLendernotlaterthan11:00a.m.(i)threeBusinessDayspriortotherequesteddateofanyBorrowingof,conversiontoorcontinuationof,LIBORRateLoansdenominatedinDollarsorofanyconversionofLIBORRateLoansdenominatedinDollarstoPrimeRateLoans,(ii)fourBusinessDays(orfiveBusinessDaysinthecaseofaSpecialNoticeCurrency)priortotherequesteddateofanyBorrowingorcontinuationofanyLIBORRateLoansdenominatedinAlternativeCurrencies,and(iii)ontherequesteddateofanyBorrowingofPrimeRateLoans.EachtelephonicnoticebyaBorrowerpursuanttothisSection2.02(a)mustbeconfirmedpromptlybydeliverytotheLenderofawrittenLoanNotice,appropriatelycompletedandsignedbyaResponsibleOfficerofsuchBorrower.EachBorrowingof,conversiontoorcontinuationofLIBORRate

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Loansshallbeinaprincipalamountof$250,000orawholemultipleof$50,000inexcessthereof.EachBorrowingoforconversiontoPrimeRateLoansshallbeinaprincipalamountof$100,000orawholemultipleof$50,000inexcessthereof.EachLoanNotice(whethertelephonicorwritten)shallspecify(i)whethertheapplicableBorrowerisrequestingaBorrowing,aconversionofLoansfromoneTypetotheother,oracontinuationofLIBORRateLoans,(ii)therequesteddateoftheBorrowing,conversionorcontinuation,asthecasemaybe(whichshallbeaBusinessDay),(iii)theprincipalamountofLoanstobeborrowed,convertedorcontinued,(iv)theTypeofLoanstobeborrowedortowhichexistingLoansaretobeconverted,(v)ifapplicable,thedurationoftheInterestPeriodwithrespectthereto,(vi)thecurrencyoftheLoansto be borrowed and (vii) if applicable, the Designated Borrower. If aBorrower fails to specify a currency in a Loan Notice requesting aBorrowing,thentheLoanssorequestedshallbemadeinDollars.IfaBorrowerfailstospecifyaTypeofaLoaninaLoanNoticeorifsuchBorrowerfailstogiveatimelynoticerequestingaconversionorcontinuation,thentheapplicableLoansshallbemadeas,orconvertedto,PrimeRateLoans;provided,however,thatinthecaseofafailuretotimelyrequestofacontinuationofLoansdenominatedinAlternativeCurrency,such Loans shall be continued as LIBOR Rate Loans in their original currency with an Interest Period of one month. Any such automaticconversiontoPrimeRateLoansshallbeeffectiveasofthelastdayoftheInterestPeriodthenineffectwithrespecttotheapplicableLIBORRateLoans.IfaBorrowerrequestsaBorrowingof,conversionto,orcontinuationofLIBORRateLoansinanyLoanNotice,butfailstospecifyanInterestPeriod,itwillbedeemedtohavespecifiedanInterestPeriodofonemonth.NoLoanmaybeconvertedintoorcontinuedasaLoandenominatedinadifferentcurrency,butinsteadmustbeprepaidintheoriginalcurrencyofsuchLoanandreborrowedinothercurrency.

(b)Upon satisfaction of the applicable conditions set forth inSection5.02(and, if such Borrowing is the initial Credit Extension,Section 5.01 ), theLender shall make all funds so received available to the applicable Borrower either by (i) crediting the account of suchBorrower on the books of the Lender with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance withinstructionsprovidedto(andreasonablyacceptableto)theLenderbysuchBorrower;provided,however,thatif,onthedateofaBorrowingofRevolvingLoans,thereareUnreimbursedAmounts,thentheproceedsofsuchBorrowing,first,shallbeappliedtothepaymentinfullofsuchUnreimbursedAmountsandsecond,shallbemadeavailabletosuchBorrowerasprovidedabove.

( c )Except as otherwise provided herein, a LIBORRate Loan may be continued or converted only on the last day of the InterestPeriodforsuchLIBORRateLoan.DuringtheexistenceofanEventofDefault,noLoansdenominatedinDollarsmaybeconvertedtoorcontinuedasLIBORRateLoanswithouttheconsentoftheLenderandtheLendermaydemandthatanyorallofthethenoutstandingLIBORRateLoansdenominatedinDollarsbeconvertedimmediatelytoPrimeRateLoans.

2.03LettersofCredit.

(a)TheLetterofCreditCommitment.

( i ) Subject to the terms and conditions set forth herein, the Lender agrees (1) from time to time on any Business DayduringtheperiodfromtheClosingDateuntilthedatethatistendaysbeforetheMaturityDate,toissueLettersofCreditdenominatedinDollarsorinoneormoreAlternativeCurrenciesfortheaccountoftheCompanyoranyofitsSubsidiaries,andtoamendorextendLettersofCreditpreviouslyissuedbyit,inaccordancewithsubsection(b)below,and(2)tohonordrawingsundertheLettersofCredit;providedthataftergivingeffecttoanyL/CCreditExtensionwithrespecttoanyLetterofCredit,(y)theTotalRevolvingOutstandingsshall not exceed theRevolvingCommitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter ofCredit Sublimit. Each request by the Company for the issuance or amendment of a Letter of Credit shall be deemed to be arepresentationbytheCompanythatthe

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L/CCreditExtensionsorequestedcomplieswiththeconditionssetforthintheprovisototheprecedingsentence.Withintheforegoinglimits, andsubject to thetermsandconditionshereof, theCompany's ability to obtain Letters of Credit shall befully revolving, andaccordinglytheCompanymay,duringtheforegoingperiod,obtainLettersofCredittoreplaceLettersofCreditthathaveexpiredorthathavebeendrawnuponandreimbursed.

(ii)TheLendershallnotbeunderanyobligationtoissueanyLetterofCreditif:

( A ) subject to Section 2.03(b)(iii) , the expiry date of such requested Letter of Credit would occur more thantwelvemonthsafterthedateofissuanceorlastextension;or

(B)theexpirydateofsuchrequestedLetterofCreditwouldoccuraftertheLetterofCreditExpirationDate;

( C ) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport toenjoinorrestraintheLenderfromissuingsuchLetterofCredit,oranyLawapplicabletotheLenderoranyrequestordirective(whetherornothavingtheforceoflaw)fromanyGovernmentalAuthoritywithjurisdictionovertheLendershallprohibit,orrequest that theLender refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shallimpose upon the Lenderwith respect to such Letter of Credit any restriction, reserve or capital requirement (for which theLender is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the Lender anyunreimbursedloss, cost or expense whichwas not applicable onthe ClosingDate andwhichtheLenderingoodfaithdeemsmaterialtoit;

( D ) the issuance of such Letter of Credit would violate one or more policies of the Lender applicable toborrowersgenerally;

(E)except as otherwise agreed by theLender, such Letter of Credit is to be denominated in a currency other thanDollarsoranAlternativeCurrency;

( F ) the Lender does not as of the issuance date of such requested Letter of Credit issue Letters of Credit in therequestedcurrency;or

(G) such Letter of Credit contains any provisions for automatic reinstatement of the stated amount after anydrawingthereunder.

(iii)TheLendershall be under no obligation to amend any Letter of Credit if (A) theLenderwould have no obligation atsuchtimetoissuesuchLetterofCreditinitsamendedformunderthetermshereof,or(B)thebeneficiaryofsuchLetterofCreditdoesnotaccepttheproposedamendmenttosuchLetterofCredit.

(b)ProceduresforIssuanceandAmendmentofLettersofCredit;Auto-ExtensionLettersofCredit.

( i ) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Company delivered totheLenderintheformofaLetterofCreditApplication,appropriatelycompletedandsignedbyaResponsibleOfficeroftheCompany.SuchLetterofCreditApplicationmustbereceivedbytheLendernotlaterthan11:00a.m.atleastthree(3)BusinessDays(orsuchlaterdateandtimeastheLendermayagreeinaparticularinstanceinits

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sole discretion) prior to theproposedissuancedate or date of amendment, as thecasemaybe. In thecaseof a request for aninitialissuance of a Letter of Credit, such Letter of Credit Application shall specify in formand detail satisfactory to theLender: (A)theproposedissuancedate of the requestedLetter of Credit (whichshall be a Business Day); (B) theamount , currencyandexpirydatethereof;(C)thenameandaddressofthebeneficiarythereof;(D)thedocumentstobepresentedbysuchbeneficiaryincaseofanydrawingthereunder;(E)thefulltextofanycertificatetobepresentedbysuchbeneficiaryincaseofanydrawingthereunder;(F)thepurposeandnatureoftherequestedLetterofCredit;and(G)suchothermattersastheLendermayrequire.InthecaseofarequestforanamendmentofanyoutstandingLetterofCredit,suchLetterofCreditApplicationshallspecifyinformanddetailsatisfactorytotheLender(A)theLetterofCredittobeamended;(B)theproposeddateofamendmentthereof(whichshallbeaBusinessDay);(C)thenatureoftheproposedamendment;and(D)suchothermattersastheLendermayrequire.Additionally,theCompanyshallfurnishtotheLendersuchotherdocumentsandinformationpertainingtosuchrequestedLetterofCreditissuanceoramendment,includinganyIssuerDocuments,astheLendermayrequire.

( ii )Upon the Lender's determination that the requested issuance or amendment is permitted in accordance with the termshereof,then,subjecttothetermsandconditionshereof,theLendershall,ontherequesteddate,issueaLetterofCreditfortheaccountoftheCompanyortheapplicableSubsidiaryorenterintotheapplicableamendment,asthecasemaybe,ineachcaseinaccordancewiththeLender'susualandcustomarybusinesspractices.

( iii ) If the Company so requests in any applicable Letter of Credit Application, the Lendermay, in its sole and absolutediscretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an "Auto-Extension Letter of Credit ");provided that any such Auto-Extension Letter of Credit must permit theLender to prevent any such extension at least once in eachtwelve-monthperiod(commencingwiththedateofissuanceofsuchLetterofCredit)bygivingpriornoticetothebeneficiarythereofnotlater thana day(the"Non-ExtensionNoticeDate") in each suchtwelve-month periodto be agreeduponat the timesuchLetter ofCreditisissued.UnlessotherwisedirectedbytheLender,theCompanyshallnotberequiredtomakeaspecificrequesttotheLenderforanysuchextension.

( iv ) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank withrespect theretoor to thebeneficiarythereof, theLenderwill alsodelivertotheCompanya trueandcomplete copyof suchLetter ofCreditoramendment.

(c)Drawings and Reimbursements . Upon receipt from the beneficiary of any Letter of Credit of any notice of drawing undersuchLetterofCredit,theLendershallnotifytheCompanythereof.InthecaseofaLetterofCreditdenominatedinanAlternativeCurrency,theCompanyshallreimbursetheLenderinsuchAlternativeCurrency,unless(A)theLender(atitsoption)shallhavespecifiedinsuchnoticethatit will requirereimbursementinDollars, or(B)intheabsenceofanysuchrequirementforreimbursementinDollars, theCompanyshallhavenotifiedtheLenderpromptlyfollowingreceiptofthenoticeofdrawingthattheCompanywillreimbursetheLenderinDollars.InthecaseofanysuchreimbursementinDollarsofadrawingunderaLetterofCreditdenominatedinanAlternativeCurrency,theLendershallnotifytheCompanyoftheDollarEquivalentoftheamountofthedrawingpromptlyfollowingthedeterminationthereof.Notlaterthan11:00a.m.onthedateofanypaymentbytheLenderunderaLetterofCredittobereimbursedinDollars,ortheApplicableTimeonthedateofanypaymentbythe Lender under a Letter of Credit to be reimbursedin anAlternative Currency(eachsuchdate, an"HonorDate"), theCompanyshallreimburse theLender in an amount equal to the amount of such drawing and in the applicable currency. Any notice given by the LenderpursuanttothisSection2.03(c)maybegivenbytelephoneif immediatelyconfirmedinwriting;providedthatthelackofsuchanimmediateconfirmationshallnotaffectthe

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conclusivenessorbindingeffectofsuchnotice.IftheCompanyfailstoreimburse(whetherbymeansofaBorrowingorotherwise)theLenderfor any drawing (expressed in Dollars in an amount of the Dollar Equivalent thereof in the case of a Letter of Credit denominated in anAlternativeCurrency)under any Letter of Credit (each suchunreimburseddrawing, an “UnreimbursedAmount”), then the UnreimbursedAmountshall bedueandpayableondemand(togetherwithinterest) andshall bearinterestat theDefault Rate.AnyUnreimbursedAmountmay,attheoptionoftheLender,beaddedtotheOutstandingAmountwithrespecttoaRevolvingLoan.

( d )Obligations Absolute . The obligation of theCompany to reimburse theLender for each drawing under each Letter of Creditshall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under allcircumstances,includingthefollowing:

(i)anylackofvalidityorenforceabilityofsuchLetterofCredit,thisAgreementoranyotherLoanDocument;

( ii ) the existence of any claim, counterclaim, setoff, defense or other right that theCompany or any Subsidiary may haveatanytimeagainstanybeneficiaryoranytransfereeofsuchLetterofCredit(oranyPersonforwhomanysuchbeneficiaryoranysuchtransfereemaybeacting), theLenderor anyother Person, whether in connectionwiththis Agreement, thetransactionscontemplatedherebyorbysuchLetterofCreditoranyagreementorinstrumentrelatingthereto,oranyunrelatedtransaction;

( iii ) any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged,fraudulent,invalidorinsufficientinanyrespectoranystatementthereinbeinguntrueorinaccurateinanyrespect;oranylossordelayinthetransmissionorotherwiseofanydocumentrequiredinordertomakeadrawingundersuchLetterofCredit;

( iv ) any payment by the Lender under such Letter of Credit against presentation of a draft or certificate that does notstrictlycomplywiththetermsofsuchLetterofCredit;oranypaymentmadebytheLenderundersuchLetterofCredittoanyPersonpurporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or otherrepresentativeoforsuccessortoanybeneficiaryoranytransfereeofsuchLetterofCredit,includinganyarisinginconnectionwithanyproceedingunderanyDebtorReliefLaw;

( v ) any adverse change in the relevant exchange rates or in the availability of the relevant Alternative Currency to theCompanyoranySubsidiaryorintherelevantcurrencymarketsgenerally;or

(vi) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any othercircumstancethatmightotherwiseconstituteadefenseavailableto,oradischargeof,theCompanyoranySubsidiary.

TheCompanyshallimmediatelyexamineacopyofeachLetterofCreditandeachamendmenttheretothatisdeliveredtoitand,intheeventofany claim of noncompliance with the Company 's instructions or other irregularity, the Companywill promptly notify the Lender . TheCompanyshallbeconclusivelydeemedtohavewaivedanysuchclaimagainsttheLenderanditscorrespondentsunlesssuchnoticeisgivenasaforesaid.

( e )Role of the Lender . TheLender and the Company agree that, in paying any drawing under a Letter of Credit, the Lendershallnothaveanyresponsibilitytoobtainanydocument(otherthananysightdraft,certificatesanddocumentsexpresslyrequiredbysuchLetterofCredit)ortoascertainorinquireas

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to the validity or accuracy of any suchdocument or the authority of the Personexecuting or delivering anysuchdocument. TheCompanyherebyassumesall risks of the acts or omissions of anybeneficiary or transferee with respect to its use of anyLetter of Credit;provided,however,thatthisassumptionisnotintendedto,andshallnot,precludetheCompanyfrompursuingsuchrightsandremediesasitmayhaveagainstthebeneficiaryortransfereeatlaworunderanyotheragreement.NoneoftheLender,anyofitsRelatedPartiesnoranycorrespondent,participantorassigneeoftheLendershallbeliableorresponsibleforanyofthemattersdescribedinclauses(i)through(vi)ofSection2.03(d);provided,however,thatanythinginsuchclausestothecontrarynotwithstanding,theCompanymayhaveaclaimagainsttheLender,andtheLendermaybeliabletotheCompany,totheextent,butonlytotheextent,ofanydirect,asopposedtoconsequentialorexemplary,damagessuffered by theCompanywhichtheCompanyproves were caused by theLender's willful misconduct or gross negligence or theLender'swillfulfailuretopayunderanyLetterofCreditafterthepresentationtoitbythebeneficiaryofasightdraftandcertificate(s)strictlycomplyingwiththetermsandconditionsofaLetterofCredit.Infurtheranceandnotinlimitationoftheforegoing,theLendermayacceptdocumentsthatappearontheirfacetobeinorder,withoutresponsibilityforfurtherinvestigation,regardlessofanynoticeorinformationtothecontrary,andtheLendershall notberesponsibleforthevalidityorsufficiencyofanyinstrumenttransferringorassigningorpurportingtotransferorassignaLetterofCreditortherightsorbenefitsthereunderorproceedsthereof,inwholeorinpart,whichmayprovetobeinvalidorineffectiveforanyreason.

( f )Cash Collateral . ( i ) I f, as of the date that is ten days prior to theMaturityDate, any Letter of Credit for any reasonremainsoutstanding,theCompanyshallimmediatelyCashCollateralizethethenOutstandingAmountofall L/CObligationsbyanamountequalto100%ofsuchOutstandingAmount.

( ii ) Sections 2.05 and 9.02(c) set forth certain additional requirements to deliver Cash Collateral hereunder. For purposesofthisSection2.03(f),Section2.05andSection9.02(c),"CashCollateralize"meanstopledgeanddepositwithordelivertotheLender, as collateral for the L/C Obligations, cash or deposit account balances pursuant to documentation in form and substancereasonablysatisfactory to theLender. Derivatives of such term have corresponding meanings. TheCompanyhereby grants to theLender,asecurityinterestinallsuchcash,depositaccountsandallbalancesthereinandallproceedsoftheforegoing.CashCollateralshallbemaintainedinblocked,non-interestbearingdepositaccountsattheLender.

(g)Applicability of ISP . Unless otherwise expressly agreed by theLenderandtheCompanywhen a Letter of Credit isissued,therulesoftheISPshallapplytoeachLetterofCredit.

(h)Letter of Credit Fees . TheCompanyshall payto the Lender , in Dollars, a Letter of Credit fee (the "Letter of Credit Fee")foreachLetterofCreditequaltotheApplicableRatetimestheDollarEquivalentofthedailyamountavailabletobedrawnundersuchLetterofCredit.ForpurposesofcomputingthedailyamountavailabletobedrawnunderanyLetterofCredit,theamountofsuchLetterofCreditshallbedeterminedinaccordancewithSection1.06.LetterofCreditFeesshallbe(i)dueandpayableonthefirstBusinessDayaftertheendofeachMarch,June,SeptemberandDecember,commencingwiththefirstsuchdatetooccuraftertheissuanceofsuchLetterofCredit,ontheLetterofCreditExpirationDateandthereafterondemandand(ii)computedonaquarterlybasisinarrears.IfthereisanychangeintheApplicableRateduringanyquarter,thedailyamountavailabletobedrawnundereachLetterofCreditshallbecomputedandmultipliedbytheApplicableRateseparatelyforeachperiodduringsuchquarterthatsuchApplicableRatewasineffect.

( i ) Documentary and Processing Charges . The Company shall pay to the Lender , in Dollars, the customary issuance,presentation,amendmentandotherprocessingfees,andotherstandardcostsandcharges,oftheLenderrelatingtolettersofcreditasfromtimetotimeineffect.Suchcustomaryfeesandstandardcostsandchargesaredueandpayableondemandandarenonrefundable.

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(j)Conflict withIssuer Documents . In the event of any conflict betweenthe termshereof andthe termsof anyIssuer Document,thetermshereofshallcontrol.

( k ) Letters of Credit Issued for Subsidiaries . Notwithstanding that a Letter of Credit issued or outstanding hereunder is insupportofanyobligationsof,orisfortheaccountof,aSubsidiary,theCompanyshallbeobligatedtoreimbursetheLenderhereunderforanyand all drawings under such Letter of Credit. TheCompanyhereby acknowledges that the issuance of Letters of Credit for the account ofSubsidiariesinurestothebenefit oftheCompany,andthattheCompany's businessderivessubstantial benefits fromthebusinessesofsuchSubsidiaries.

2.04[Reserved].

2.05Prepayments.

(a)VoluntaryPrepaymentsofLoans.

AnyBorrowermay,uponnoticefromsuchBorrowertotheLender,atanytimeorfromtimetotimevoluntarilyprepayLoansinwholeorinpartwithoutpremiumorpenalty;providedthat(A)suchnoticemustbereceivedbytheLendernotlaterthan11:00a.m.(1)threeBusinessDayspriortoanydateofprepaymentofLIBORRateLoansdenominatedinDollars,(2)fourBusinessDays(orfive,inthe case of prepayment of Loans denominated in Special Notice Currencies)prior to any date of prepayment of LIBORRate LoansdenominatedinAlternativeCurrencies,and(3)onthedateofprepaymentofPrimeRateLoans;(B)anysuchprepaymentofLIBORRateLoansshallbeinaprincipalamountof$250,000orawholemultipleof$50,000inexcessthereof(or,ifless,theentireprincipalamountthereofthenoutstanding);and(C)anyprepaymentofPrimeRateLoansshallbeinaprincipalamountof$100,000orawholemultipleof$50,000inexcessthereof(or,ifless,theentireprincipalamountthereofthenoutstanding).Eachsuchnoticeshallspecifythedate andamount of suchprepayment andtheType(s)andcurrenciesof Loanstobeprepaidand, ifLIBORRateLoansare to beprepaid,theInterestPeriod(s)ofsuchLoans.IfsuchnoticeisgivenbyaBorrower,suchBorrowershallmakesuchprepaymentandthepaymentamountspecifiedinsuchnoticeshallbedueandpayableonthedatespecifiedtherein.AnyprepaymentofaLIBORRateLoan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant toSection3.05.

(b)MandatoryPrepaymentsofLoans.

I f theLender notifies theCompany at any time that the Total Revolving Outstandings at such time exceed theRevolvingCommitment then in effect, then, upon receipt of such notice , the Borrower s shall first prepayRevolvingLoans and secondCashCollateralizetheL/CObligationsinanaggregateamountsufficienttoreducesuchexcess.TheLendermay,atanytimeandfromtime to time after the initial deposit of such Cash Collateral, request that additional Cash Collateral be provided in order to protectagainsttheresultsoffurtherexchangeratefluctuations.

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2.06TerminationorReductionofRevolvingCommitment.

TheCompanymay, upon notice to theLender, terminate the Revolving Commitment, or fromtime to time permanently reduce theRevolvingCommitment;providedthat(i)anysuchnoticeshallbereceivedbytheLendernotlaterthan12:00noonfive(5)BusinessDayspriortothedateofterminationorreduction,(ii)anysuchpartialreductionshallbeinanaggregateamountof$1,000,000oranywholemultipleof$1,000,000inexcessthereof,(iii)theCompanyshallnotterminateorreducetheRevolvingCommitmentif,aftergivingeffecttheretoandtoanyconcurrentprepaymentshereunder,theTotalRevolvingOutstandingswouldexceedtheRevolvingCommitmentand(iv)if,aftergivingeffecttoanyreductionoftheRevolvingCommitmenttheLetterofCreditSublimitexceedstheamountoftheRevolvingCommitment,suchsublimitshallbeautomaticallyreducedbytheamountofsuchexcess.TheamountofanysuchRevolvingCommitmentreductionshallnotbeappliedtotheLetterofCreditSublimitunlessotherwisespecifiedbytheCompany.AllfeesaccruedwithrespecttheretountiltheeffectivedateofanyterminationoftheRevolvingCommitmentshallbepaidontheeffectivedateofsuchtermination.

2.07RepaymentofLoans.

TheBorrowersshallrepaytotheLenderontheMaturityDatetheaggregateprincipalamountofallRevolvingLoansoutstandingonsuchdate.

2.08Interest.

( a ) Subject to the provisions of subsection (b) below, (i) each LIBORRate Loan shall bear interest on the outstanding principalamountthereofforeachInterestPeriodatarateperannumequaltothesumoftheLIBORRateforsuchInterestPeriodplustheApplicableRateplus(inthecaseofaLIBORRateLoanwhichislentfromtheapplicableLender’sOfficeintheUnitedKingdomoraParticipatingMemberState)theMandatoryCost;and(ii)eachPrimeRateLoanshallbearinterestontheoutstandingprincipalamountthereoffromtheapplicableborrowingdateatarateperannumequaltothePrimeRateplustheApplicableRateplus(inthecaseofaLIBORRateLoanwhichislentfromtheapplicableLender’sOfficeintheUnitedKingdomoraParticipatingMemberState)theMandatoryCost.

( b )Upon the occurrence of any Event of Default, all amounts outstanding under this Agreement, including any interest, fees, orcosts which are not paid when due, will at the option of the Lender bear interest at the Default Rate. This may result in compounding ofinterest. This will not constitute a waiver of any Default. Accrued and unpaid interest on past due amounts (including interest on past dueinterest)shallbedueandpayableupondemand.

( c ) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such othertimesasmaybespecifiedherein.Interesthereundershallbedueandpayableinaccordancewiththetermshereofbeforeandafterjudgment,andbeforeandafterthecommencementofanyproceedingunderanyDebtorReliefLaw.

2.09Fees.

Inadditiontocertainfeesdescribedinsubsections(h)and(i)ofSection2.03,theCompanyshallpaytotheLenderacommitmentfeeinDollarsequaltotheproductof(i)theApplicableRatetimes(ii)theactualdailyamountbywhichtheRevolvingCommitmentexceedstheTotalRevolvingOutstandings.ThecommitmentfeeshallaccrueatalltimesduringtheAvailabilityPeriod,includingatanytimeduringwhichoneormoreoftheconditionsinArticleVisnotmet,andshallbedueandpayablequarterlyinarrearsonthelastBusinessDayofeachMarch,June, SeptemberandDecember, commencingwiththefirst suchdate to occur after the ClosingDate, andonthe last dayof the AvailabilityPeriod.Thecommitmentfeeshallbe

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calculatedquarterlyinarrears,andifthereisanychangeintheApplicableRateduringanyquarter,theactualdailyamountshallbecomputedandmultipliedbytheApplicableRateseparatelyforeachperiodduringsuchquarterthatsuchApplicableRatewasineffect.Notwithstandingtheforegoing,theCompanyshallnotowetheLenderacommitmentfeeforanydaywheretheTotalRevolvingOutstandingsattheendofsuchdayexceedstheunfundedCommitmentforsuchday.

2.10ComputationofInterestandFees.

ExceptasotherwisestatedinthisAgreement,allcomputationsofinterestforPrimeRateLoansshallbemadeonthebasisofayearof365or366days,asthecasemaybe,andactualdayselapsed.Allothercomputationsoffeesandinterestshallbemadeonthebasisofa360-dayyearandactualdayselapsed(whichresultsinmorefeesorinterest,asapplicable,beingpaidthanifcomputedonthebasisofa365-dayyear),or,inthecaseofinterestinrespectofLoansdenominatedinAlternativeCurrenciesastowhichmarketpracticediffersfromtheforegoing,inaccordancewithsuchmarketpractice. Interest shall accrueoneachLoanforthedayonwhichtheLoanismade,andshall notaccrueonaLoan,oranyportionthereof,forthedayonwhichtheLoanorsuchportionispaid,providedthatanyLoanthatisrepaidonthesamedayonwhich it is made shall, subject to Section 2.12(a) , bear interest for one day. Each determination by the Lender of an interest rate or feehereundershallbeconclusiveandbindingforallpurposes,absentmanifesterror.

2.11[Reserved].

2.12PaymentsGenerally.

( a )Each payment by aBorrower will be without condition or deduction for any counterclaim , defense, recoupment or setoff .Except as otherwiseexpresslyprovidedherein andexcept with respect to principal of andinterest onLoans denominatedin an AlternativeCurrency,allpaymentsshallbemadeinDollarsandSameDayFundsandwillbemadebydebittoadepositaccount,ifdirectdebitisprovidedforinthisAgreementoris otherwiseauthorizedbytheCompanyortheapplicableBorrower.PaymentsofprincipalandinterestonLoansdenominatedinAlternativeCurrenciesshallbemadeattheapplicableLender'sOfficeinsuchAlternativeCurrencyinSameDayFundsnotlaterthantheApplicableTimespecifiedbytheLenderormaybemadebydebittoadepositaccount,ifdirectdebitisprovidedforinthisAgreementorisotherwiseauthorizedbytheCompanyortheapplicableBorrower.Forpaymentsnotmadebydirectdebit,paymentswillbemadebymailtotheaddressshownonthestatementfurnishedbytheLendertotheCompany,orbysuchothermethodasmaybepermittedbytheLender.Withoutlimitingtheforegoing,theLendermayrequirethatanypaymentsdueunderthisAgreementbemadeintheUnitedStates.If,foranyreason,aBorrower is prohibited by anyLawfrommakinganyrequired payment hereunder in an Alternative Currency,suchBorrowershallmakesuchpaymentinDollarsintheDollarEquivalentoftheAlternativeCurrencypaymentamount.Allpaymentsanddisbursementswhichwouldbedueonadaywhichisnotabankingdaywillbedueonthenextbankingday.Allpaymentsreceivedonadaywhichisnotabankingdaywillbeappliedtothecreditonthenextbankingday.

( b ) For any payment under this Agreement made by debit to a deposit account, each applicableBorrower will maintain sufficientimmediately available funds in the deposit account to cover each debit. If there are insufficient immediately available funds in the depositaccountonthedatetheLenderentersanysuchdebitauthorizedbythisAgreement,theLendermayreversethedebit.

( c )Each disbursement by the Lender and each payment by aBorrower will be evidenced by records kept by the Lender . Inaddition,theLendermay,atitsdiscretion,requiretheBorrowerstosignoneormorepromissorynotes.

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( d )No less than five Business Days p rior to the date each payment of principal and interest and any fees from the Borrower s

becomesdue(the"DueDate"),theLenderwillsendtotheCompanyastatementoftheamountsthatwillbedueonthatDueDate(the"BilledAmount").ThecalculationsinthebillwillbemadeontheassumptionthatnonewextensionsofcreditorpaymentswillbemadebetweenthedateofthebillingstatementandtheDueDate,andthattherewillbenochangesintheapplicableinterestrate.IftheBilledAmountdiffersfromtheactualamountdueontheDueDate(the"AccruedAmount"),thediscrepancywillbetreatedasfollows:

( i ) If the Billed Amount is less than the Accrued Amount, the Billed Amount for the following Due Date will beincreasedbytheamountofthediscrepancy.TheBorrowerswillnotbeinDefaultbyreasonofanysuchdiscrepancy.

( ii ) If the Billed Amount is more than the Accrued Amount, the Billed Amount for the following Due Date will bedecreasedbytheamountofthediscrepancy.

Regardless of any such discrepancy, interest will continue to accrue based on the actual amount of principal outstanding withoutcompounding.TheLenderwillnotpaytheBorrowersinterestonanyoverpayment.

(e)TheCompanyagrees that on the Due Date the Lender will debit the Billed Amount froma deposit accountwiththeLenderownedbytheCompanyoranotherBorrowerwhichhasbeendesignatedinwritingbytheCompanyortheapplicableBorrower.

2.13DesignatedBorrowers.

( a ) The Companymay at any time, upon not less than 15 Business Days' notice from the Company to the Lender (or suchshorter period as maybe agreed by theLenderin its sole discretion), request the designation of anywholly-ownedForeignSubsidiary(an"ApplicantBorrower")asaDesignatedBorrowertoreceiveLoanshereunderbydeliveringtotheLenderadulyexecutednoticeinsubstantiallytheformofExhibit2.13A(a"DesignatedBorrowerRequest").IftheLenderagreesthatanApplicantBorrowershallbeentitledtoreceiveLoans hereunder, then the Lender shall send an agreement in substantially the form of Exhibit 2.13B (a " Designated Borrower JoinderAgreement")totheCompanyspecifying(x)theadditionaltermsandconditionsapplicabletoextensionsofcredittosuchApplicantBorrowerduetoapplicableLawswithrespecttothejurisdictionoforganizationforsuchApplicantBorrowerand(y)theeffectivedateuponwhichtheApplicant Borrower shall constitute a Designated Borrower for purposes hereof. Upon the execution of such Designated Borrower JoinderAgreementbytheCompanyandsuchApplicantBorrower,suchApplicantBorrowershallbeaDesignatedBorrowerandpermittedtoreceiveLoanshereunder,onthetermsandconditionssetforthhereinandtherein,andsuchApplicantBorrowerotherwiseshallbeaBorrowerforallpurposesofthisAgreement;providedthatnoLoanNoticemaybesubmittedbyoronbehalfofsuchDesignatedBorroweruntilthedatefiveBusinessDaysaftersucheffectivedate.ThepartiesheretoacknowledgeandagreethatpriortoanyDesignatedBorrowerbecomingentitledtoutilizethecreditfacilitiesprovidedforinthisAgreementtheLendershallhavereceivedsuchsupportingresolutions,incumbencycertificates,opinionsofcounselandotherdocumentsorinformation,inform,contentandscopereasonablysatisfactorytotheLender,asmayberequiredbytheLenderinitsreasonablediscretion.

(b) TheObligationsofeachoftheDesignatedBorrowersshallbeseveralinnature.( c ) Each Subsidiary of the Company that is or becomes a "Designated Borrower" pursuant to this Section 2.1 3 hereby

irrevocablyappoints theCompanyas its agent for all purposes relevant to this Agreement and each of the other LoanDocuments, including(i)thegivingandreceiptofnotices,(ii)the

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executionanddeliveryofalldocuments,instrumentsandcertificatescontemplatedhereinandallmodificationshereto,and(iii)thereceiptoftheproceedsofanyLoansmadebytheLender,toanysuchDesignatedBorrowerhereunder.Anyacknowledgment,consent,direction,certificationorotheractionwhichmightotherwisebevalidoreffectiveonlyifgivenortakenbyallBorrowers,orbyeachBorroweractingsingly,shallbevalidandeffectiveifgivenortakenonlybytheCompany,whetherornotanysuchotherBorrowerjoinstherein.Anynotice,demand,consent,acknowledgement, direction, certification or other communication delivered totheCompanyin accordance with the termsof this AgreementshallbedeemedtohavebeendeliveredtoeachDesignatedBorrower;providedthatifsuchcommunicationisdirectedtoaspecificDesignatedBorrower,itshallindicatetowhichDesignatedBorroweritisdirected.

(d)TheCompanymay from time to time, upon not less than 15 Business Days' notice from theCompanyto theLender(orsuchshorterperiodasmaybeagreedbytheLenderinitssolediscretion),terminateaDesignatedBorrower'sstatusassuch,providedthattherearenooutstandingLoanspayablebysuchDesignatedBorrower,orotheramountspayablebysuchDesignatedBorroweronaccountofanyLoansmadetoit,asoftheeffectivedateofsuchtermination.

ARTICLEIII

TAXES,YIELDPROTECTIONANDILLEGALITY

3.01Taxes.

IfanypaymentstotheLenderunderthisAgreementoranyLoanDocumentaremadefromoutsidetheUnitedStatesorbyaDesignatedBorrower,noBorrowerwilldeductanynon-UnitedStatesTaxesfromanypaymentsitmakestotheLender.IfanysuchTaxesareimposedonanypaymentsmadebyaBorrowerunderthisAgreementoranyLoanDocument,suchBorrowerwillpaysuchTaxesandwillalsopaytotheLender, at the timeinterest is paid, anyadditional amount whichthe Lender specifies as necessary to preserve the after-tax yield the Lenderwould have received if such Taxes had not been imposed. The applicableBorrower will confirm that it has paid such Taxes by giving theLenderofficialtaxreceipts(ornotarizedcopies)withinthirty(30)daysaftertheduedate

3.02Illegality.

IftheLenderdeterminesthatanyLawhasmadeitunlawful,orthatanyGovernmentalAuthorityhasassertedthatitisunlawful,fortheLenderoritsapplicableLender'sOfficetomake,maintainorfundLIBORRateLoansortodetermineorchargeinterestratesbasedupontheLIBORRate(whetherdenominatedinDollarsoranAlternativeCurrency),oranyGovernmentalAuthorityhasimposedmaterialrestrictionsontheauthorityoftheLendertopurchaseorsell,ortotakedepositsof,DollarsoranyAlternativeCurrencyintheapplicableoffshoreinterbankmarket, then,onnoticethereofbytheLendertotheCompany,anyobligationoftheLendertomakeorcontinueLIBORRateLoansintheaffected currency or currencies or to convert Prime Rate Loan s toLIBORRateLoans shall be suspended until theLender notifies theCompanythat the circumstances giving rise to such determination no longer exist. Upon receipt of such notice, the Borrower sshall,upondemandfromtheLender,prepayor,ifapplicableandsuchLIBORRateLoansaredenominatedinDollars,convertalloftheLIBORRateLoanstoPrimeRateLoans,eitheronthelastdayoftheInterestPeriodtherefor,iftheLendermaylawfullycontinuetomaintainsuchLIBORRate Loans to such day, or immediately, if theLender may not lawfully continue to maintain such LIBOR Rate Loans . Upon any suchprepaymentorconversion,theBorrowersshallalsopayaccruedinterestontheamountsoprepaidorconverted.

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3.03InabilitytoDetermineRates.

IftheLenderdeterminesthatforanyreasoninconnectionwithanyrequestforaLIBORRateLoanoraconversiontoorcontinuationthereof that (a) deposits (whether in Dollars or an Alternative Currency) are not being offered to banks in the applicable offshore interbankmarketforsuchcurrencyfortheapplicableamountandInterestPeriodofsuchLIBORRateLoan,(b)adequateandreasonablemeansdonotexist for determining the London Interbank Offered Rate for any requested Interest Period with respect to a proposed LIBOR Rate Loan(whetherinDollarsoranAlternativeCurrency),or(c)theLondonInterbankOfferedRateforanyrequestedInterestPeriodwithrespecttoaproposedLIBORRateLoanorinconnectionwithaLIBORRateLoandoesnotadequatelyandfairlyreflectthecosttotheLenderoffundingsuchLoan,theLenderwillpromptlynotifytheCompany.ThereaftertheobligationoftheLendertomakeormaintainLIBORRateLoansinthe affected currency or currencies shall be suspended until the Lender revokes such notice. Upon receipt of such notice, a BorrowermayrevokeanypendingrequestforaBorrowingof,conversiontoorcontinuationofLIBORRateLoansintheaffectedcurrencyorcurrenciesor,failingthat,willbedeemedtohaveconvertedsuchrequestintoarequestforaBorrowingofPrimeRateLoansintheamountspecifiedthereintotheextentavailable(or,inthecaseofapendingrequestforaLoandenominatedinanAlternativeCurrency,theCompanyandtheLendermayestablishamutuallyacceptablealternativerate).

3.04IncreasedCosts.

(a)IncreasedCostsGenerally.IfanyChangeinLawshall:

( i ) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similarrequirementagainstassetsof,depositswithorfortheaccountof,orcreditextendedorparticipatedinby,theLender(except(A)anyreserverequirementreflectedintheLIBORRateand(B)therequirementsoftheBankofEnglandandtheFinancialServicesAuthorityortheEuropeanCentralBankreflectedintheMandatoryCost,otherthanassetforthbelow);

( ii ) subject the Lender to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit or anyLoan,orchangethebasisoftaxationofpaymentstotheLenderinrespectthereof;

( iii ) result in the failure of the Mandatory Cost, as calculated hereunder, to represent the cost to the Lender of complyingwith the requirements of the Bank of England and/or the Financial Services Authority or the European Central Bank in relation tomaking,fundingormaintainingLIBORRateLoans;or

(iv) impose on the Lender or the applicable offshore interbank market any other condition, cost or expense affecting thisAgreementorLoansoranyLetterofCredit;

andtheresultofanyoftheforegoingshallbetoincreasethecosttotheLenderofmakingormaintaininganyLIBORRateLoan(orofmaintainingitsobligationtomakeanysuchLoan),ortoincreasethecosttotheLenderofissuingormaintaininganyLetterofCredit,ortoreducetheamountofanysumreceivedorreceivablebytheLenderhereunder(whetherofprincipal, interest oranyotheramount)then, upon request of theLender, the Borrower swill pay to theLender such additional amount or amounts as will compensate theLenderforsuchadditionalcostsincurredorreductionsuffered.

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( b )Capital Requirements . If theLender determines that any Change in Law affecting theLender or anyLender'sOffice of the

Lenderoritsholdingcompany,ifany,regardingcapitalrequirementshasorwouldhavetheeffectofreducingtherateofreturnontheLender'scapitaloronthecapitaloftheLender'sholdingcompany,ifany,asaconsequenceofthisAgreement,theCommitment,LoansorLettersofCredit,toalevelbelowthatwhichtheLenderortheLender'sholdingcompanycouldhaveachievedbutforsuchChangeinLaw(takingintoconsiderationtheLender'spoliciesandthepoliciesoftheLender'sholdingcompanywithrespecttocapitaladequacy),thenfromtimetotimetheBorrowerswillpaytotheLendersuchadditionalamountoramountsaswillcompensatetheLenderortheLender'sholdingcompanyforanysuchreductionsuffered.

(c)Certificates for Reimbursement . A certificate of theLender setting forth the amount or amounts necessary to compensate theLenderoritsholdingcompany,asthecasemaybe,asspecifiedinsubsection(a)or(b)ofthisSectionanddeliveredtotheCompanyshallbeconclusiveabsentmanifesterror.TheCompanyshallpay(orcausetheapplicableDesignatedBorrowertopay)theLendertheamountshownasdueonanysuchcertificatewithin10daysafterreceiptthereof.

( d )Delay in Requests . Failure or delay on the part of theLender to demand compensation pursuant to the foregoing provisionsofthisSectionshallnotconstituteawaiveroftheLender'srighttodemandsuchcompensation.

3.05CompensationforLosses.

UpondemandoftheLenderfromtimetotime,theCompanyshallpromptlycompensate(orcausetheapplicableDesignatedBorrowertocompensate)theLenderforandholdtheLenderharmlessfromanyloss,costorexpenseincurredbyitasaresultof:

(a)any continuation, conversion, payment or prepayment of anyLIBORRate Loanona dayother thanthe last dayof the InterestPeriodforsuchLoan(whethervoluntary,mandatory,automatic,byreasonofacceleration,orotherwise);

( b ) any failure by aBorrower (for a reason other than the failure of theLender to make a Loan) to prepay, borrow, continue orconvertanyLIBORRateLoanonthedateorintheamountnotifiedbytheCompanyortheapplicableDesignatedBorrower;or

(c) any failure by a Borrower to make payment of any Loan or drawing under any Letter of Credit (or interest due thereon)denominatedinanAlternativeCurrencyonitsscheduledduedateoranypaymentanyLoanordrawingunderanyLetterofCredit(orinterestduethereon)inadifferentcurrencyfromsuchLoanorLetterofCreditdrawing;

includinganylossofanticipatedprofits , for foreignexchangelossesoranylossorexpensearisingfromtheliquidationorreemploymentoffunds obtained by it to maintain such Loan, from fees payable to terminate the deposits from which such funds were obtained or from theperformanceofanyforeignexchangecontract.TheBorrowersshallalsopayanycustomaryadministrativefeeschargedbytheLenderinconnectionwiththeforegoing.

ForpurposesofcalculatingamountspayablebytheBorrowerstotheLenderunderthisSection3.05,theLendershallbedeemedtohavefundedeachLIBORRateLoanattheLondonInterbankOfferedRateusedindeterminingtheLIBORRateforsuchLoanbyamatchingdepositorotherborrowingintheapplicableoffshoreinterbankmarketforsuchcurrencyforacomparableamountandforacomparableperiod,whetherornotsuchLIBORRateLoanwasinfactsofunded.

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3.06MitigationObligations.

IftheLenderrequestscompensationunderSection3.04,oraBorrowerisrequiredtopayanyadditionalamounttotheLenderoranyGovernmentalAuthorityfortheaccountoftheLenderpursuanttoSection3.01,oriftheLendergivesanoticepursuanttoSection3.02,thentheLendershallusereasonableeffortstodesignateadifferentLender'sOfficeforfundingorbookingitsLoanshereunderortoassignitsrightsandobligationshereundertoanotherofitsoffices,branchesoraffiliates,if,inthejudgmentoftheLender,suchdesignationorassignment(i)wouldeliminateorreduceamountspayablepursuanttoSection3.01or3.04, asthecasemaybe,inthefuture,oreliminatetheneedforthenoticepursuanttoSection3.02 , as applicable, and (ii) in each case, would not subject theLender to anyunreimbursedcost or expense andwouldnototherwisebedisadvantageoustotheLender.TheBorrowersherebyagreetopayallreasonablecostsandexpensesincurredbytheLenderinconnectionwithanysuchdesignationorassignment.

3.07Survival.

All of the Loan Parties' obligations under thisArticle III shall surviv e termination of the Commitment and repayment of all otherObligationshereunder.

ARTICLEIV

GUARANTY

4.01TheGuaranty.

( a )Each of the Guarantors hereby jointly and severally guarantees to the Lender and each of the holders of the Obligations ashereinafterprovided,asprimaryobligorandnotassurety,thepromptpaymentoftheObligationsinfullwhendue(whetheratstatedmaturity,asamandatoryprepayment,byacceleration,asamandatorycashcollateralizationorotherwise)strictlyinaccordancewiththetermsthereof.TheGuarantors hereby further agree that if any of the Obligations are not paid in full when due (whether at stated maturity, as a mandatoryprepayment, byacceleration, as a mandatory cashcollateralizationor otherwise), the Guarantors will, jointly andseverally, promptly paythesame,withoutanydemandornoticewhatsoever,andthatinthecaseofanyextensionoftimeofpaymentorrenewalofanyoftheObligations,thesamewillbepromptlypaidinfullwhendue(whetheratextendedmaturity,asamandatoryprepayment,byacceleration,asamandatorycashcollateralizationorotherwise)inaccordancewiththetermsofsuchextensionorrenewal.

( b )Notwithstanding any provision to the contrary contained herein or in any other of the Loan Documents, Swap Contracts orTreasuryManagementAgreements,theobligationsofeachGuarantorunderthisAgreementandtheotherLoanDocumentsshallnotexceedanaggregateamountequaltothelargestamountthatwouldnotrendersuchobligationssubjecttoavoidanceunderapplicableDebtorReliefLaws.

4.02ObligationsUnconditional.

( a ) The obligations of the Guarantors under Section 4.01 are joint and several, absolute and unconditional, irrespective of thevalue,genuineness,validity,regularityorenforceabilityofanyoftheLoanDocuments,SwapContractsorTreasuryManagementAgreements,or any other agreement or instrument referred to therein, or any substitution, compromise, release, impairment or exchange of any otherguaranteeoforsecurityforanyoftheObligations,and,tothefullestextentpermittedbyapplicableLaw,irrespectiveofanyothercircumstancewhatsoever that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of thisSection 4.02 that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances. EachGuarantoragreesthatsuchGuarantorshallhavenorightofsubrogation,indemnity,reimbursementorcontributionagainstanyBorroweroranyother

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GuarantorforamountspaidunderthisArticleIVuntilsuchtimeastheObligationshavebeenpaidinfullandtheCommitmentshaveexpiredorterminated.

( b )Without limiting the generality of the foregoing subsection (a) , it is agreed that, to the fullest extent permitted by Law, theoccurrenceofanyoneormoreofthefollowingshallnotalterorimpairtheliabilityofanyGuarantorhereunder,whichshallremainabsoluteandunconditionalasdescribedabove:

(i)at any time or fromtime to time, without notice to any Guarantor, the time for any performance of or compliance withanyoftheObligationsshallbeextended,orsuchperformanceorcomplianceshallbewaived;

( ii ) any of the acts mentioned in any of the provisions of any of the Loan Documents, any Swap Contract or TreasuryManagementAgreementbetweenanyLoanPartyandtheLender,oranyAffiliateoftheLender,oranyotheragreementorinstrumentreferredtointheLoanDocuments,suchSwapContractsorsuchTreasuryManagementAgreementsshallbedoneoromitted;

(iii)the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplementedoramendedinanyrespect,oranyrightunderanyoftheLoanDocumentsoranyotherdocumentsrelatingtotheObligationsoranyotheragreementorinstrumentreferredtothereinshallbewaivedoranyotherguaranteeofanyoftheObligationsoranysecuritythereforshallbereleased,impairedorexchangedinwholeorinpartorotherwisedealtwith;

( iv ) any Lien granted to, or in favor of, the Lender or any holder of Obligations as security for any of the Obligationsshallfailtoattachorbeperfected;or

(v)any of the Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of anycreditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of anyGuarantor).

( c ) With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand ofpayment,protestandallnoticeswhatsoever,andanyrequirementthattheLenderoranyholderoftheObligationsexhaustanyright,powerorremedyorproceedagainstanyPersonunderanyoftheLoanDocuments,anySwapContractoranyTreasuryManagementAgreementbetweenanyLoanPartyandtheLender,oranyAffiliateoftheLender,oranyotheragreementorinstrumentreferredtointheLoanDocuments,suchSwapContractsorsuchTreasuryManagementAgreements,oragainstanyotherPersonunderanyotherguaranteeof,orsecurityfor,anyoftheObligations.

4.03Reinstatement.

Theobligations of eachGuarantor under thisArticle IVshall be automatically reinstated if and to the extent that for anyreasonanypayment by or on behalf of any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder of any of theObligations,whetherasaresultofanyDebtorReliefLaworotherwise,andeachGuarantoragreesthatitwillindemnifytheLenderandeachholderoftheObligationsondemandforallreasonablecostsandexpenses(including,withoutlimitation,thefees,chargesanddisbursementsofcounsel)incurredbytheLenderorsuchholderoftheObligationsinconnectionwithsuchrescissionorrestoration,includinganysuchcostsandexpenses incurred in defendingagainst anyclaimallegingthat such payment constituted a preference, fraudulent transfer or similar paymentunderanyDebtorReliefLaw.

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4.04CertainAdditionalWaivers.

EachGuarantoracknowledgesandagreesthat (a) theguarantygivenherebymaybeenforcedwithoutthenecessityofresortingtoorotherwise exhaustingremedies in respect of anyother security or collateral interests, andwithout the necessity at anytimeof havingto takerecourseagainstanyBorrowerhereunderoragainstanycollateralsecuringtheObligationsorotherwise,and(b)itwillnotassertanyrighttorequire that action first be taken against anyBorrower or any other Person (including any co ‑guarantor) or pursuit of any other remedy orenforcementanyotherright,and(c)nothingcontainedhereinshallpreventorlimitactionbeingtakenagainstanyBorrowerhereunder,undertheotherLoanDocumentsortheotherdocumentsandagreementsrelatingtotheObligationsor,foreclosureonanysecurityorcollateralinterestsrelatingheretoorthereto,ortheexerciseofanyotherrightsorremediesavailableinrespectthereof,ifneithertheBorrowersnortheGuarantorsshalltimelyperformtheirobligations,andtheexerciseofanysuchrightsandcompletionofanysuchforeclosureproceedingsshallnotconstituteadischargeoftheGuarantors'obligationshereunderunlessasaresultthereof,theObligationsshallhavebeenpaidinfullandthecommitmentsrelating thereto shall have expired or terminated, it being the purpose and intent that the Guarantors' obligations hereunder be absolute,irrevocable,independentandunconditionalunderallcircumstances.EachGuarantoragreesthatsuchGuarantorshallhavenorightofrecoursetosecurityfortheObligations,exceptthroughtheexerciseofrightsofsubrogationpursuanttoSection4.02andthroughtheexerciseofrightsofcontributionpursuanttoSection4.06.

4.05Remedies.

The Guarantors agree that, to the fullest extent permitted by Law, as between the Guarantors, on the one hand, and holders of theObligations, on the other hand, the Obligations may be declared to be forthwith due and payable as provided inSection 9.02 (and shall bedeemed to have become automatically due and payable in the circumstances specified in Section 9.02 ) for purposes of Section 4.01notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becomingautomaticallydueandpayable)asagainstanyotherPersonandthat,intheeventofsuchdeclaration(ortheObligationsbeingdeemedtohavebecomeautomaticallydueandpayable),theObligations(whetherornotdueandpayablebyanyotherPerson)shallforthwithbecomedueandpayablebytheGuarantorsforpurposesofSection4.01.

4.06RightsofContribution.

TheGuarantorsherebyagreeasamongthemselvesthat,inconnectionwithpaymentsmadehereunder,eachGuarantorshallhavearightofcontributionfromeachotherGuarantorinaccordancewithapplicableLaw.SuchcontributionrightsshallbesubordinateandsubjectinrightofpaymenttotheObligationsuntilsuchtimeastheObligationshavebeenirrevocablypaidinfullandthecommitmentsrelatingtheretoshallhave expired or been terminated, and none of the Guarantors shall exercise any such contribution rights until the Obligations have beenirrevocablypaidinfullandtheCommitmentsshallhaveexpiredorbeenterminated.

4.07GuaranteeofPayment;ContinuingGuarantee.

The guarantee in this Article IV is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to allObligationswheneverarising.

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4.08WaiversofOtherRightsandDefenses.

( a )EachGuarantor waives any rights and defenses that are or may become available to Guarantor by reason of Sections 2787 to2855,inclusive,oftheCaliforniaCivilCode.

(b)EachGuarantor waivesanyright or defenseit mayhaveat lawor equity, includingCaliforniaCodeof Civil ProcedureSection580a,toafairmarketvaluehearingoractiontodetermineadeficiencyjudgmentafteraforeclosure.

4.09Subordination.

EachGuarantorherebysubordinatesthepaymentofallobligationsandindebtednessofeachotherLoanPartyowingtosuchGuarantor,whethernowexistingorhereafterarising,includingbutnotlimitedtoanyobligationofsuchotherLoanPartytosuchGuarantorassubrogeeoftheLenderorresultingfromsuchGuarantor’sperformanceunderthisArticleIV,totheindefeasiblepaymentinfullofallObligations.IftheLendersorequests, any such obligation or indebtedness of the applicableLoanParty toanyGuarantorshall be enforced and performancereceivedbysuchGuarantorastrusteefortheLenderandtheproceedsthereofshallbepaidovertotheLenderonaccountoftheObligations,butwithoutreducingoraffectinginanymannertheliabilityofsuchGuarantorunderthisArticleIV.

ARTICLEV

CONDITIONSPRECEDENTTOCREDITEXTENSIONS

5.01ConditionsofInitialCreditExtension.

The obligation of the Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following conditionsprecedent:

( a )Loan Documents . Receipt by the Lender of executed counterparts of this Agreement and the other Loan Documents, eachproperlyexecutedbyaResponsibleOfficerofthesigningLoanPartyand,asapplicable,bytheLender.

( b ) Opinions of Counsel . Receipt by the Lender of favorable opinions of legal counsel to the Loan Parties, addressed to theLender,datedasoftheClosingDate,andinformandsubstancesatisfactorytotheLender.

(c)NoMaterial AdverseChange. SinceAugust 31, 2010 , there has not occurred an event or condition that has had or couldreasonablybeexpectedtohaveaMaterialAdverseEffect.

(d)Organization Documents, Resolutions, Etc . Receipt by theLenderof the following, in form and substance satisfactory to theLender:

( i ) copies of the Organization Documents of each Loan Party certified to be true and complete as of a recent date by theappropriateGovernmentalAuthorityofthestateorotherjurisdictionofitsincorporationororganization,whereapplicable,andcertifiedbyasecretaryorassistantsecretaryofsuchLoanPartytobetrueandcorrectasoftheClosingDate;

( ii ) such certificates of resolutions or other action, incumbency certificates and/or other certificates of ResponsibleOfficersofeachLoanPartyastheLendermayrequireevidencing

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theidentity,authorityandcapacityofeachResponsibleOfficerthereofauthorizedtoactasaResponsibleOfficerinconnectionwiththisAgreementandtheotherLoanDocumentstowhichsuchLoanPartyisaparty;and

( iii ) such documents and certifications as the Lender may reasonably require to evidence that each Loan Party is dulyorganized or formed, and is validly existing, in good standing and qualified to engage in business in its state of organization orformation,thestateofitsprincipalplaceofbusinessandeachotherjurisdictionwhereitsownership,leaseoroperationofpropertiesortheconductofitsbusinessrequiressuchqualification,excepttotheextentthatfailuretodosocouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect.

(e)ClosingCertificate . Receipt by theLenderof a certificate signedbya Responsible Officer of theCompanycertifyingthat theconditionsspecifiedinSection5.01(c)andSections5.02(a)and(b)havebeensatisfied.

(f)Fees.ReceiptbytheLenderofanyfeesrequiredtobepaidonorbeforetheClosingDate.

( g ) Attorney Costs . The Company shall have paid all reasonable fees, charges and disbursements of counsel to the Lender(directlytosuchcounselifrequestedbytheLender)totheextentinvoicedpriortoorontheClosingDate,plussuchadditionalamountsofsuch fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to beincurredbyitthroughtheclosingproceedings(providedthatsuchestimateshallnotthereafterprecludeafinalsettlingofaccountsbetweentheCompanyandtheLender).

(h)Union Bank Line of Credit . Receipt of evidence satisfactory to the Lender that the Company’s line of credit with Union Bankhasbeenrepaidinfullandterminated.

5.02ConditionstoallCreditExtensions.

TheobligationoftheLendertohonoranyRequestforCreditExtensionissubjecttothefollowingconditionsprecedent:

( a )The representations and warranties of the Loan Part ies contained in Article VI or any other Loan Document, or which arecontainedinanydocumentfurnishedatanytimeunderorinconnectionherewithortherewith,shallbetrueandcorrectonandasofthedateofsuchCreditExtension,excepttotheextentthatsuchrepresentationsandwarrantiesspecificallyrefertoanearlierdate,inwhichcasetheyshallbetrueandcorrectasofsuchearlierdate.

(b)NoDefaultshallexist,orwouldresultfromsuchproposedCreditExtensionorfromtheapplicationoftheproceedsthereof.

(c)TheLendershallhavereceivedaRequestforCreditExtensioninaccordancewiththerequirementshereof.

(d) In the case of a Credit Extension to be denominated in an Alternative Currency, there shall not have occurred any change innational or international financial, political or economicconditionsor currencyexchangerates or exchangecontrols whichinthereasonableopinionoftheLenderwouldmakeitimpracticableforsuchCreditExtensiontobedenominatedintherelevantAlternativeCurrency.

(e) If the applicable Borrower is a Designated Borrower, such Borrower shall have been designated as a Designated B orrowerpursuanttoSection2.13.

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(f) Prior to the earlier of (i) 30 days after the Closing Date and (ii) the first Credit Extension, the Lender shall have receivedevidencesatisfactorytotheLenderthattheCompany’slineofcreditwithUnionBankhasbeenrepaidinfullandterminated.

EachRequestforCreditExtensionsubmittedbyaBorrowershallbedeemedtobearepresentationandwarrantythattheconditionsspecifiedinSections5.02(a)and(b)havebeensatisfiedonandasofthedateoftheapplicableCreditExtension.

ARTICLEVI

REPRESENTATIONSANDWARRANTIES

EachLoanPartyrepresentsandwarrantstotheLenderthat:

6.01Existence,QualificationandPower.

TheCompanyandeachSubsidiary(a)isdulyorganizedorformed,validlyexistingand,asapplicable,ingoodstandingundertheLawsof the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses,authorizations,consentsandapprovalsto(i)ownorleaseitsassetsandcarryonitsbusinessand(ii)execute,deliverandperformitsobligationsundertheLoanDocumentstowhichitisaparty,and(c)isdulyqualifiedandislicensedand,asapplicable,ingoodstandingundertheLawsofeachjurisdictionwhereitsownership,leaseoroperationofpropertiesortheconductofitsbusinessrequiressuchqualificationorlicense;exceptineachcasereferredtoinclause(b)(i)or(c),totheextentthatfailuretodosocouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect.

6.02Authorization;NoContravention.

The execution, delivery and performance by each Loan Party of each LoanDocument to which such Person is party have been dulyauthorizedbyallnecessarycorporateorotherorganizationalaction,anddonot(a)contravenethetermsofanyofsuchPerson'sOrganizationDocuments;(b)conflictwithorresultinanybreachorcontraventionof,orthecreationofanyLienunder,orrequireanypaymenttobemadeunder (i) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of itsSubsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or itspropertyissubject;or(c)violateanyLaw.

6.03GovernmentalAuthorization;OtherConsents.

Noapproval,consent,exemption,authorization,orotheractionby,ornoticeto,orfilingwith,anyGovernmentalAuthorityoranyotherPersonis necessaryor requiredinconnectionwiththeexecution, deliveryor performanceby, or enforcementagainst, anyLoanPartyof thisAgreementoranyotherLoanDocumentotherthanthosethathavealreadybeenobtainedandareinfullforceandeffect.

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6.04BindingEffect.

EachLoanDocumenthasbeendulyexecutedanddeliveredbyeachLoanPartythatispartythereto.EachLoanDocumentconstitutesalegal, valid and binding obligation of each Loan Party that is party thereto, enforceable against each such Loan Party in accordance with itsterms.

6.05FinancialStatements;NoMaterialAdverseEffect.

( a ) The financial statements delivered pursuant to Sections 7.01(a) and 7.01(b) (i) were prepared in accordance with GAAPconsistentlyappliedthroughouttheperiodcoveredthereby,exceptasotherwiseexpresslynotedtherein;(ii)fairlypresentthefinancialconditionof theCompanyand its Subsidiaries as of the date thereof and their results of operations for the period covered thereby in accordance withGAAPconsistentlyappliedthroughouttheperiodcoveredthereby,exceptasotherwiseexpresslynotedtherein(subject,inthecaseofunauditedfinancialstatements,totheabsenceoffootnotesandtonormalyear-endauditadjustments);and(iii)showallmaterialindebtednessandotherliabilities,directorcontingent,oftheCompanyanditsSubsidiariesasofthedatethereof,includingliabilitiesfortaxes,materialcommitmentsandIndebtedness.

( b ) The audited consolidated financial statements of the Company and its Subsidiaries for the fiscal year ending August 31,2010andtheunauditedconsolidatedfinancialstatementsoftheCompanyanditsSubsidiariesforthefiscalquarterendingFebruary28,2011(i) were preparedin accordancewith GAAPconsistently applied throughout the periodcoveredthereby,except as otherwiseexpresslynotedtherein;(ii)fairlypresentthefinancialconditionoftheCompanyanditsSubsidiariesasofthedatethereofandtheirresultsofoperationsfortheperiod covered thereby (subject, in the case of unaudited financial statements, to the absence of footnotes and to normal year-end auditadjustments);and(iii)showallmaterialindebtednessandotherliabilities,directorcontingent,oftheCompanyanditsSubsidiariesasofthedatethereof,includingliabilitiesfortaxes,materialcommitmentsandIndebtedness.

( c ) FromAugust 31, 2010 to and including the Closing Date, there has been no Disposition or any Involuntary Disposition ofanymaterialpartofthebusinessorpropertyoftheCompanyanditsSubsidiaries,takenasawhole,andnopurchaseorotheracquisitionbyanyof them of any business or property (including any Equity Interests of any other Person) material in relation to the consolidated financialconditionoftheCompanyanditsSubsidiaries,takenasawhole,ineachcase,whichisnotreflectedintheforegoingfinancialstatementsorinthenotestheretoandhasnototherwisebeendisclosedinwritingtotheLenderonorpriortotheClosingDate.

( d ) Since August 31, 2010 , there has been no event or circumstance, either individually or in the aggregate, that has had orcouldreasonablybeexpectedtohaveaMaterialAdverseEffect.

6.06Litigation.

Therearenoactions,suits,proceedings,claimsordisputespendingor,totheactualknowledgeoftheResponsibleOfficersoftheLoanPartiesafterdueanddiligentinvestigationorthreatened,atlaw,inequity,inarbitrationorbeforeanyGovernmentalAuthority,byoragainsttheCompanyoranySubsidiaryoragainstanyoftheirpropertiesorrevenuesthat(a)purporttoaffectorpertaintothisAgreementoranyotherLoanDocument,oranyofthetransactionscontemplatedherebyor(b)couldreasonablybeexpectedtohaveaMaterialAdverseEffect.

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6.07NoDefault.

( a )Neither the Companynor any Subsidiary is in default under or with respect to any Contractual Obligation that individually orintheaggregatecouldreasonablybeexpectedtohaveaMaterialAdverseEffect.

(b)NoDefaulthasoccurredandiscontinuing.

6.08OwnershipofProperty.

TheCompanyandeachofitsSubsidiarieshasgoodrecordandmarketabletitleinfeesimpleto,orvalidleaseholdinterestsin,allrealpropertynecessaryorusedintheordinaryconductofitsbusiness,exceptforsuchdefectsintitleascouldnot,individuallyorintheaggregate,reasonablybeexpectedtohaveaMaterialAdverseEffect.

6.09EnvironmentalCompliance.

(a)TheCompanyanditsSubsidiaries conduct in the ordinary course of business a review of the effect of existing EnvironmentalLawsandclaimsallegingpotentialliabilityorresponsibilityforviolationofanyEnvironmentalLawontheirrespectivebusinesses,operationsand properties, and as a result thereof the Loan Parties have reasonably concluded that such Environmental Laws and claims could not,individuallyorintheaggregate,reasonablybeexpectedtohaveaMaterialAdverseEffect.

( b )Except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, HazardousMaterialshavenotbeenreleased,dischargedordisposedofonanypropertycurrentlyorformerlyownedoroperatedbytheCompanyoranySubsidiary.

( c )Neither the Company nor any Subsidiary is undertaking, and has not completed, either individually or together with otherpotentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened release,dischargeordisposalofHazardousMaterialsatanysite,locationoroperation,eithervoluntarilyorpursuanttotheorderofanyGovernmentalAuthority or the requirements of any Environmental Law; and all Hazardous Materials generated, used, treated, handled or stored at, ortransportedto or from, anyproperty currently or formerly ownedor operatedby theCompanyoranySubsidiaryhavebeendisposedofinamannernotreasonablyexpectedtoresultinaMaterialAdverseEffect.

6.10Insurance.

ThepropertiesoftheCompanyanditsSubsidiariesareinsuredwithfinanciallysoundandreputableinsurancecompaniesnotAffiliatesoftheCompany,insuchamounts,withsuchdeductiblesandcoveringsuchrisksasarecustomarilycarriedbycompaniesengagedinsimilarbusinessesandowningsimilarpropertiesinlocalitieswheretheCompanyortheapplicableSubsidiaryoperates.

6.11Taxes.

TheCompanyanditsSubsidiarieshavefiledallfederal,stateandothermaterialtaxreturnsandreportsrequiredtobefiled,andhavepaid all federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or theirproperties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedingsdiligently conducted and for which adequate reserves have been provided in accordance with GAAP. There is no proposed tax assessmentagainsttheCompanyoranySubsidiarythatwould,ifmade,haveaMaterialAdverseEffect.NeithertheCompanynoranySubsidiarythereofispartytoanytaxsharingagreement.

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6.12ERISACompliance.

( a )Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Internal Revenue Code andotherfederalorstateLaws.EachPlanthatisintendedtobeaqualifiedplanunderSection401(a)oftheInternalRevenueCodehasreceivedafavorabledeterminationletterfromtheIRStotheeffect that theformofsuchPlanis qualifiedunderSection401(a)of theInternal RevenueCodeandthetrustrelatedtheretohasbeendeterminedbytheIRStobeexemptfromfederalincometaxunderSection501(a)oftheInternalRevenueCode,oranapplicationforsuchaletteriscurrentlybeingprocessedbytheIRS.TothebestknowledgeoftheLoanParties,nothinghasoccurredthatwouldpreventorcausethelossofsuchtax-qualifiedstatus.

( b )There are no pending or, to the best knowledge of the Loan Parties, threatened claims, actions or lawsuits, or action by anyGovernmentalAuthority,withrespecttoanyPlanthatcouldbereasonablybeexpectedtohaveaMaterialAdverseEffect.TherehasbeennoprohibitedtransactionorviolationofthefiduciaryresponsibilityruleswithrespecttoanyPlanthathasresultedorcouldreasonablybeexpectedtoresultinaMaterialAdverseEffect.

( c ) ( i) No ERISA Event has occurred, and no Loan Party nor any ERISA Affiliate is aware of any fact, event or circumstancethat couldreasonablybeexpectedto constitute or result in anERISAEvent withrespect to anyPensionPlan; (ii)eachLoanPartyandeachERISAAffiliate has met all applicable requirements under the PensionFundingRules in respect of eachPensionPlan, andnowaiver of theminimumfundingstandardsunderthePensionFundingRuleshasbeenappliedfororobtained;(iii)asofthemostrecentvaluationdateforanyPensionPlan,thefundingtargetattainmentpercentage(asdefinedinSection430(d)(2)oftheInternalRevenueCode)is60%orhigherandnoLoan Party nor any ERISA Affiliate knows of any facts or circumstances that could reasonably be expected to cause the funding targetattainmentpercentageforanysuchplantodropbelow60%asofthemostrecentvaluationdate;(iv)noLoanPartynoranyERISAAffiliatehasincurredanyliabilitytothePBGCotherthanforthepaymentofpremiums,andtherearenopremiumpaymentswhichhavebecomeduethatareunpaid;(v)noLoanPartynoranyERISAAffiliatehasengagedinatransactionthatcouldbesubjecttoSection4069orSection4212(c)ofERISA;and(vi) noPensionPlanhas beenterminatedbythe planadministrator thereof nor bythe PBGC,andnoevent or circumstancehasoccurred or exists that could reasonably be expected to cause the PBGCto institute proceedings under Title IV of ERISA to terminate anyPensionPlan.

6.13Subsidiaries.

SetforthonSchedule6.13isacompleteandaccuratelistasoftheClosingDateofeachSubsidiaryoftheCompany,togetherwith(i)jurisdictionoforganization,(ii)numberofsharesofeachclassofEquityInterestsoutstanding,and(iii)numberandpercentageofoutstandingsharesofeachclassowned(directlyorindirectly)bytheCompanyoranySubsidiary.TheoutstandingEquityInterestsofeachSubsidiaryoftheCompanyarevalidlyissued,fullypaidandnon‑assessable.

6.14MarginRegulations;InvestmentCompanyAct.

( a ) No Borrower is engaged and no Borrower will engage, principally or as one of its important activities, in the business ofpurchasingorcarryingmarginstock(withinthemeaningofRegulationUissuedbytheFRB),orextendingcreditforthepurposeofpurchasingorcarryingmarginstock.FollowingtheapplicationoftheproceedsofeachBorrowingordrawingundereachLetterofCredit,notmorethan25% of the value of the assets (either of aBorrower only or of the Company and its Subsidiaries on a consolidated basis) subject to theprovisionsofSection8.01orSection8.05orsubjecttoanyrestriction

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contained in any agreement or instrument betweenanyBorrowerand theLenderor anyAffiliate of theLenderrelating to Indebtedness andwithinthescopeofSection9.01(e)willbemarginstock.

( b ) No Borrower, any Person Controlling a Borrower, or any Subsidiary is or is required to be registered as an " investmentcompany"undertheInvestmentCompanyActof1940.

6.15Disclosure.

Each Loan Party has disclosed to the Lender all agreements, instruments and corporate or other restrictions to which it or any of itsSubsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in aMaterialAdverseEffect.Noreport,financialstatement,certificateorotherinformationfurnished(whetherinwritingororally)byoronbehalfof anyLoanParty to the Lender in connection with the transactions contemplated herebyandthe negotiationof this Agreement or deliveredhereunder or under any other Loan Document (in each case, as modified or supplemented by other information so furnished) contains anymaterialmisstatementoffactoromitstostateanymaterialfactnecessarytomakethestatementstherein,inthelightofthecircumstancesunderwhichtheyweremade,notmisleading;providedthat,withrespecttoprojectedfinancialinformation,theLoanPartiesrepresentonlythatsuchinformationwaspreparedingoodfaithbaseduponassumptionsbelievedtobereasonableatthetime.

6.16CompliancewithLaws.

TheCompanyandeachSubsidiary is in compliance with the requirements of all Laws and all orders, writs, injunctions and decreesapplicabletoitortoitsproperties,exceptinsuchinstancesinwhich(a)suchrequirementofLawororder,writ,injunctionordecreeisbeingcontestedingoodfaithbyappropriateproceedingsdiligentlyconductedor(b)thefailuretocomplytherewithcouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect.

6.17IntellectualProperty;Licenses,Etc.

EachoftheCompanyandeachSubsidiaryowns,orpossessesthelegalrighttouse,allofthetrademarks,servicemarks,tradenames,copyrights, patents, patent rights, franchises, licenses and other intellectual property rights (collectively, " IP Rights " ) that are reasonablynecessaryfortheoperationoftheir respectivebusinesses.Exceptfor suchclaimsandinfringementsthat couldnot reasonablybeexpectedtohaveaMaterialAdverseEffect,noclaimhasbeenassertedandispendingbyanyPersonchallengingorquestioningtheuseofanyIPRightsorthe validity or effectiveness of any IP Rights, nor does any Loan Party know of any such claim, and, to the knowledge of the ResponsibleOfficersoftheLoanParties,theuseofanyIPRightsbytheCompanyoranySubsidiaryorthegrantingofarightoralicenseinrespectofanyIPRightsfromtheCompanyoranySubsidiarydoesnotinfringeontherightsofanyPerson.

6.18Solvency.

EachBorrowerisSolvent,andtheLoanPartiesareSolventonaconsolidatedbasis.

6.19BusinessLocations;TaxpayerIdentificationNumber.

SetforthonSchedule 6.19 is thechief executiveoffice, exact legal name,U.S.taxpayeridentificationnumberandorganizationalidentificationnumberofeachLoanPartyasoftheClosingDate.

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6.20LaborMatters.

TherearenocollectivebargainingagreementsorMultiemployerPlanscoveringtheemployeesoftheCompanyoranySubsidiaryasoftheClosingDate.NeithertheCompanynoranySubsidiaryhassufferedanystrikes,walkouts,workstoppagesduetolaborissuesorothermateriallabordifficultyinthefiveyearsprecedingtheClosingDate.

ARTICLEVII

AFFIRMATIVECOVENANTS

So long as the Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid orunsatisfied,oranyLetterofCreditshallremainoutstanding,eachLoanParty shall,andshallcauseeachSubsidiaryto:

7.01FinancialStatements.

DelivertotheLender,informanddetailsatisfactorytotheLender

( a ) as soon as available, but in any event within ninety days after the end of each fiscal year of the Company , a consolidatedbalance sheet of the Company and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income oroperations,changesinshareholders'equityandcashflowsforsuchfiscalyear,settingforthineachcaseincomparativeformthefiguresforthepreviousfiscal year, all inreasonabledetail andpreparedinaccordancewithGAAP,auditedandaccompaniedbyareport andopinionofanindependentcertifiedpublicaccountantofnationallyrecognizedstandingreasonablyacceptabletotheLender,whichreportandopinionshallbeprepared in accordance with generally accepted auditing standards and shall not be subject to any"goingconcern"or like qualification orexceptionoranyqualificationorexceptionastothescopeofsuchaudit; and

(b)as soonas available, but in anyevent withinforty-fivedaysafter theendof eachof thefirst threefiscal quarters of eachfiscalyear of the Company , a consolidated balance sheet of the Company and its Subsidiaries as at the end of such fiscal quarter, the relatedconsolidatedstatementsof incomeoroperationsfor suchfiscal quarter andfor theportionof theCompany's fiscalyearthenended,andtherelatedconsolidated statements of changes in shareholders 'equity, andcash flowsfor suchfiscal quarter and theportionof theCompany'sfiscal year then ended, in each case setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of thepreviousfiscalyearandthecorrespondingportionofthepreviousfiscalyear,allinreasonabledetailandcertifiedbythechiefexecutiveofficer,chieffinancial officer, treasurerorcontroller oftheCompanyasfairlypresentingthefinancial condition, results ofoperations, shareholders 'equityandcashflowsoftheCompanyanditsSubsidiariesinaccordancewithGAAP,subjectonlytonormalyear-endauditadjustmentsandtheabsenceoffootnotes.

AstoanyinformationcontainedinmaterialsfurnishedpursuanttoSection7.02(c),theCompanyshallnotbeseparatelyrequiredtofurnishsuchinformationunderSection7.01(a)or(b)above,buttheforegoingshallnotbeinderogationoftheobligationoftheCompanytofurnishtheinformationandmaterialsdescribedinSection7.01(a)or(b)aboveatthetimesspecifiedtherein.

7.02Certificates;OtherInformation.

DelivertotheLender,informanddetailsatisfactorytotheLender:

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( a ) concurrently with the delivery of the financial statements referred to in Sections 7.01(a) and (b) , a duly completedComplianceCertificatesignedbythechiefexecutiveofficer,chieffinancialofficer,treasurerorcontrolleroftheCompany;

( b ) not later than 30 days after the beginning of each fiscal year of the Company , commencing with the fiscal year beginningSeptember1,2011,anannualbusinessplanandbudgetoftheCompanyanditsSubsidiariesonaconsolidatedbasis;

( c ) promptly upon transmission thereof, copies of all such financial statements, proxy statements, notices and reports as it shallsendtoitspublicstockholdersandcopiesofallregistrationstatements(withoutexhibits)andallreportswhichitfileswiththeSEC:

( d ) promptly upon receipt thereof, a copy of each other report submitted to any Loan Party by independent accountants inconnectionwithanyannual,interimorspecialauditmadebythemofthebooksoftheanyLoanParty;

( e ) promptly after the furnishing thereof, copies of any statement or report furnished to any holder of debt securities of theCompanyoranySubsidiarypursuanttothetermsofanyindenture,loanorcreditorsimilaragreementandnototherwiserequiredtobefurnishedtotheLenderpursuanttoSection7.01oranyotherclauseofthisSection7.02;

( f ) promptly, and in any event within five Business Days after receipt thereof by any Loan Party , copies of each notice or othercorrespondencereceivedfromtheSEC(orcomparableagencyinanyapplicablenon-U.S.jurisdiction)concerninganyinvestigationorpossibleinvestigationbysuchagencyregardingfinancialorotheroperationalresultsofanyLoanParty;and

( g ) promptly, such additional information regarding the business, financial or corporate affairs of the Company or anySubsidiary,orcompliancewiththetermsoftheLoanDocuments,astheLendermayfromtimetotimereasonablyrequest.

Documents required to be delivered pursuant to Section 7.01(a) or (b) or Section 7.02 ( c ) (to the extent any such documents areincludedinmaterialsotherwisefiledwiththeSEC)maybedeliveredelectronicallyandshallbedeemedtohavebeendeliveredelectronicallyonthedate(i)onwhichtheCompanypostssuchdocuments, orprovidesalinktheretoontheCompany’swebsiteontheInternetatthewebsiteaddresslistedonSchedule11.02;or(ii)onwhichsuchdocumentsarepostedontheCompany’sbehalfonanInternetorintranetwebsite,ifany,towhichtheLenderhasaccess(whetheracommercial,third‑partywebsiteorwhethersponsoredbytheLender);providedthattheCompanyshall notifytheLender(bytelecopier or electronicmail) of thepostingof anysuchdocuments(whichnoticeshall bedeemedsatisfiedif theCompanyhasincludedtheLenderontheCompany'selectronicdistributionlistontheCompany'sinvestorrelationswebsiteforSECfilings).

7.03Notices.

UponaResponsibleOfficerofaLoanPartyacquiringknowledgethereof,promptlynotifytheLenderof:

(a)theoccurrenceofanyDefault.

(b)anymatterthathasresultedorcouldreasonablybeexpectedtoresultinaMaterialAdverseEffect.

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(c)theoccurrenceofanyERISAEvent.

EachnoticepursuanttothisSection7.03shall beaccompaniedbyastatementofaResponsibleOfficeroftheCompanysettingforthdetails of the occurrence referredto therein andstating what actiontheCompanyhas takenandproposes to take with respect thereto. EachnoticepursuanttoSection7.03(a)shalldescribewithparticularityanyandallprovisionsofthisAgreementandanyotherLoanDocumentthathavebeenbreached.

7.04PaymentofTaxes.

Payanddischarge,asthesameshallbecomedueandpayable,allitstaxliabilities,assessmentsandgovernmentalchargesorleviesuponit or its properties or assets, unless the sameare being contested in goodfaith by appropriate proceedings diligently conducted andadequatereservesinaccordancewithGAAParebeingmaintainedbytheCompanyorsuchSubsidiary.

7.05PreservationofExistence,Etc.

(a)Preserve,renewandmaintaininfullforceandeffectitslegalexistenceandgoodstandingundertheLawsofthejurisdictionofitsorganizationexceptinatransactionpermittedbySection8.04or8.05.

( b ) Take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in thenormalconductofitsbusiness,excepttotheextentthatthefailuretodosocouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect.

(c)Preserve or renewall of its IP Rights, the non-preservation of which could reasonably be expected to have a Material AdverseEffect.

7.06MaintenanceofProperties.

( a )Maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in goodworkingorderandcondition,ordinarywearandtearexcepted.

( b ) Make all necessary repairs thereto and renewals and replacements thereof, except where the failure to do so could notreasonablybeexpectedtohaveaMaterialAdverseEffect.

(c)Usethestandardofcaretypicalintheindustryintheoperationandmaintenanceofitsfacilities.

7.07MaintenanceofInsurance.

Maintain in full force and effect insurance (including worker ' s compensation insurance, liability insurance, casualty insurance andbusinessinterruptioninsurance)withfinanciallysoundandreputableinsurancecompaniesnotAffiliatesoftheCompany,insuchamounts,withsuchdeductiblesandcoveringsuchrisksasarecustomarilycarriedbycompaniesengagedinsimilarbusinessesandowningsimilarpropertiesinlocalitieswheretheCompanyorsuchSubsidiaryoperates.

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7.08CompliancewithLaws.

Complywiththerequirementsofall Lawsandall orders,writs, injunctionsanddecreesapplicabletoit ortoitsbusinessorproperty,exceptinsuchinstancesinwhich(a)suchrequirementofLawororder,writ,injunctionordecreeisbeingcontestedingoodfaithbyappropriateproceedingsdiligentlyconducted;or(b)thefailuretocomplytherewithcouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect.

7.09BooksandRecords.

Maintainproperbooksofrecordandaccount,inwhichfull,trueandcorrectentriesinconformitywithGAAPconsistentlyappliedshallbemadeofallfinancialtransactionsandmattersinvolvingtheassetsandbusinessoftheCompanyorsuchSubsidiary,asthecasemaybe.

7.10InspectionRights.

Permit representatives and independent contractors of the Lender to visit and inspect any of its properties, to examine its corporate,financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with itsdirectors,officers,andindependentpublicaccountants,allattheexpenseoftheCompanyandatsuchreasonabletimesduringnormalbusinesshoursandasoftenasmaybereasonablydesired,uponreasonableadvancenoticetotheCompany;provided,however,thatwhenanEventofDefaultexiststheLender(oranyoftheirrespectiverepresentativesorindependentcontractors)maydoanyoftheforegoingattheexpenseoftheCompanyatanytimeduringnormalbusinesshoursandwithoutadvancenotice.

7.11UseofProceeds.

UsetheproceedsoftheCreditExtensions(a)tofinanceworkingcapital,capitalexpendituresandotherlawfulcorporatepurposes,and(b)torefinancecertainexistingIndebtedness,providedthatinnoeventshalltheproceedsoftheCreditExtensionsbeusedincontraventionofanyLaworofanyLoanDocument.

7.12ERISACompliance.

Do,andcauseeachofitsERISAAffiliatestodo,eachofthefollowing:(a)maintaineachPlanincomplianceinallmaterialrespectswiththeapplicableprovisionsofERISA,theInternalRevenueCodeandotherfederalorstatelaw;(b)causeeachPlanthatisqualifiedunderSection 401(a) of the Internal Revenue Code to maintain such qualification; and (c) make all required contributions to any Plan subject toSection412,Section430orSection431oftheInternalRevenueCode.

7.13AdditionalGuarantors.

Within thirty days after the acquisition or formation of anyDomestic Subsidiary, cause such Person to (i) become a Guarantor byexecutinganddeliveringtotheLenderaJoinderAgreementorsuchotherdocumentsastheLendershalldeemappropriateforsuchpurpose,and(ii)upontherequestoftheLenderinitssolediscretion,delivertotheLendersuchOrganizationDocuments,resolutionsandfavorableopinionsof counsel, all in form, content and scope reasonably satisfactory to theLender . Notwithstanding anything in any Loan Document to thecontrary, WD-40 Direct LLC shall not be required to become a Guarantor until such time, if any, as it has material assets and engages inbusiness.

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7.14ReleaseofLiens.

OnorpriortotheNotePurchaseAgreementTerminationDate,deliverasatisfactorypayoffletterevidencingtherepaymentinfullofandreleaseofLienssecuringtheNotePurchaseAgreement. NolaterthanthirtydaysaftertheNotePurchaseAgreementTerminationDate,providetheLendersatisfactoryevidenceoftheterminationofallLienssecuringtheNotePurchaseAgreement.

ARTICLEVIII

NEGATIVECOVENANTS

SolongastheLendershallhaveanyCommitmenthereunder,anyLoanorotherObligationhereundershallremainunpaidorunsatisfied,oranyLetterofCreditshallremainoutstanding,noLoanPartyshall,norshallitpermitanySubsidiaryto,directlyorindirectly:

8.01Liens.

Create,incur,assumeorsuffertoexistanyLienuponanyofitsproperty,assetsorrevenues,whethernowownedorhereafteracquired,otherthanthefollowing:

(a)LienspursuanttoanyLoanDocument;

(b)LiensexistingonthedatehereofandlistedonSchedule8.01;

(c)Liens (other than Liens imposed under ERISA) for taxes, assessments or governmental charges or levies not yet due or whicharebeingcontestedingoodfaithandbyappropriateproceedingsdiligentlyconducted,ifadequatereserveswithrespecttheretoaremaintainedonthebooksoftheapplicablePersoninaccordancewithGAAP;

( d ) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and suppliers and other Liensimposedbylaworpursuanttocustomaryreservationsorretentionsoftitlearisingintheordinarycourseofbusiness,providedthatsuchLienssecureonlyamountsnotyetdueandpayableor,ifdueandpayable,areunfiledandnootheractionhasbeentakentoenforcethesameorarebeing contested in good faith by appropriate proceedings for which adequate reserves determined in accordance with GAAP have beenestablished;

( e ) pledges or deposits in the ordinary course of business in connection with workers ' compensation, unemployment insuranceandothersocialsecuritylegislation,otherthananyLienimposedbyERISA;

( f ) deposits to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, suretyandappealbonds,performancebondsandotherobligationsofalikenatureincurredintheordinarycourseofbusiness;

( g ) easements, rights-of-way, restrictions and other similar encumbrances affecting real property which, in the aggregate, are notsubstantialinamount,andwhichdonotinanycasemateriallydetractfromthevalueofthepropertysubjecttheretoormateriallyinterferewiththeordinaryconductofthebusinessoftheapplicablePerson;

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( h ) Liens securing judgments for the payment of money (or appeal or other surety bonds relating to such judgments) not

constitutinganEventofDefaultunderSection9.01(h);

( i ) Liens securing Indebtedness permitted underSection 8.03(e) ; provided that (i) such Liens do not at any time encumber anypropertyotherthanthepropertyfinancedbysuchIndebtednessand(ii) suchLiensattachtosuchpropertyconcurrentlywithorwithinninetydaysaftertheacquisitionthereof;

( j ) leases or subleases granted to others not interfering in any material respect with the business of the Company or anySubsidiary;

( k ) any interest of title of a lessor under, and Liens arising from UCC financing statements (or equivalent filings, registrations oragreementsinforeignjurisdictions)relatingto,leasespermittedbythisAgreement;

(l)LiensdeemedtoexistinconnectionwithInvestmentsinrepurchaseagreementspermittedunderSection8.02;

(m)normalandcustomaryrightsofsetoffupondepositsofcashinfavorofbanksorotherdepositoryinstitutions;

(n)Liens of acollectionbank arising under Section 4 ‑210 of the UniformCommercial Code on items in the course of collection;and

(o) prior to the Note Purchase Agreement Termination Date, Liens securing the Company's obligations under the Note PurchaseAgreement.

8.02Investments.

MakeanyInvestments,except:

(a)InvestmentsheldintheformofcashorCashEquivalents;

(b)InvestmentsexistingasoftheClosingDateandsetforthonSchedule8.02;

(c)InvestmentsinanyPersonthatisaLoanPartypriortogivingeffecttosuchInvestment;

(d)InvestmentsbyanySubsidiarythatisnotaLoanPartyinanyotherSubsidiarythatisnotaLoanParty;

( e ) Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grantoftradecreditintheordinarycourseofbusiness,andInvestmentsreceivedinsatisfactionorpartialsatisfactionthereoffromfinanciallytroubledaccountdebtorstotheextentreasonablynecessaryinordertopreventorlimitloss;

(f)GuaranteespermittedbySection8.03;

(g)PermittedAcquisitions;and

( h ) Investments of a nature not contemplated in the foregoing clauses in an amount not to exceed $2,500,000 in the aggregate atanytimeoutstanding.

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8.03Indebtedness.

Create,incur,assumeorsuffertoexistanyIndebtedness,except:

(a)IndebtednessundertheLoanDocuments;

(b)IndebtednesssetforthonSchedule8.03;

(c)intercompanyIndebtednesspermittedunderSection8.02;

( d ) obligations (contingent or otherwise) existing or arising under any Swap Contract, provided that (i) such obligations are (orwere) entered into by such Person in the ordinary course of business for the purpose of directly mitigating risks associated with liabilities,commitments,investments,assets,orpropertyheldorreasonablyanticipatedbysuchPerson,orchangesinthevalueofsecuritiesissuedbysuchPerson,andnotforpurposesofspeculationortakinga"marketview;"and(ii)suchSwapContractdoesnotcontainanyprovisionexoneratingthenon‑defaultingpartyfromitsobligationtomakepaymentsonoutstandingtransactionstothedefaultingparty;

( e ) purchase money Indebtedness (including obligations in respect of Capital Leases) hereafter incurred to finance the purchaseof fixed assets, and renewals, refinancings and extensions thereof, provided that (i) the aggregate outstanding principal amount of all suchIndebtednessshallnotexceed$10,000,000atanyonetimeoutstanding;and(ii)suchIndebtednesswhenincurredshallnotexceedthepurchasepriceoftheasset(s)financed;

(f)otherunsecuredIndebtednessinanaggregateprincipalamountnottoexceed$1,250,000atanyonetimeoutstanding;

(g)GuaranteeswithrespecttoIndebtednesspermittedunderthisSection8.03;and

( h ) prior to the Note Purchase Agreement Termination Date, Indebtedness arising under the Note Purchase Agreement in anaggregateprincipalamountnottoexceed$10,800,000.

8.04FundamentalChanges.

Merge,dissolve,liquidateorconsolidatewithorintoanotherPerson,exceptthatsolongasnoDefaultexistsorwouldresulttherefrom,(a)theCompanymaymergeorconsolidatewithanyofitsSubsidiariesprovidedthattheCompanyisthecontinuingorsurvivingPerson,(b)anySubsidiarymaymergeorconsolidatewithanyotherSubsidiaryprovidedthatif aLoanPartyisapartytosuchtransaction,thecontinuingorsurviving Person is a Loan Party, (c) the Company or any Subsidiary may merge with any other Person in connection with a PermittedAcquisitionprovidedthat(i)iftheCompanyisapartytosuchtransaction,theCompanyisthecontinuingorsurvivingPersonand(ii)ifaLoanPartyisapartytosuchtransaction,suchLoanPartyisthesurvivingPersonand(d)anySubsidiarymaydissolve,liquidateorwindupitsaffairsatanytimeprovidedthatsuchdissolution,liquidationorwindingup,asapplicable,couldnothaveaMaterialAdverseEffect.

8.05Dispositions.

MakeanyDispositionexcept:

(a)PermittedTransfers;

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( b ) Dispositions of machinery and equipment no longer used or useful in the conduct of business of the Company and its

SubsidiariesthatareDisposedofintheordinarycourseofbusiness;and

( c ) other Dispositions so long as (i) the consideration paid in connection therewith shall be paid contemporaneous withconsummationofthetransactionandshallbeinanamountnotlessthanthefairmarketvalueofthepropertydisposedof,(ii)suchtransactiondoesnotinvolvethesaleorotherdispositionofaminorityequityinterestinanySubsidiary,(iii)suchtransactiondoesnotinvolveasaleorotherdispositionofreceivablesotherthanreceivablesownedbyorattributabletootherpropertyconcurrentlybeingdisposedofinatransactionotherwisepermittedunderthisSection8.05,and (iv)theaggregatenetbookvalueofalloftheassetssoldorotherwisedisposedofbytheCompanyanditsSubsidiariesinallsuchtransactionsoccurringaftertheClosingDateshallnotexceed$25,000,000.

Notwithstanding the foregoing, prior to the Disposition (including by way of a merger or consolidation), dissolution, liquidation orwindingupofanySubsidiarythatisaDesignatedBorrower,theCompanyshallterminatesuchSubsidiary'sstatusasaDesignatedBorrowerinaccordancewithSection2.13(d)andanyLoansorotheroutstandingObligationsofsuchSubsidiaryshallbeassumedbytheCompany.

8.06RestrictedPayments.

Declareormake,directlyorindirectly,anyRestrictedPayment,orincuranyobligation(contingentorotherwise)todoso,exceptthat:

( a ) each Subsidiary may make Restricted Payments toPersons that own Equity Interests in such Subsidiary , ratably according totheirrespectiveholdingsofthetypeofEquityInterestinrespectofwhichsuchRestrictedPaymentisbeingmade;

( b ) the Company and each Subsidiary may declare and make dividend payments or other distributions payable solely in commonEquityInterestsofsuchPerson;

( c ) so long as no Default exists immediately prior and after giving effect thereto, the Company may make cash dividends in anaggregateamountduringanyfour-fiscalquarterperiodnottoexceed75%ofConsolidatedNetIncomeforthemostrecentlyendedfour-fiscalquarterperiodforwhichfinancialstatementshavebeendeliveredpursuanttoSection7.01;and

(d)so long as no Default exists immediately prior and after giving effect thereto, the Company may repurchase shares of its capitalstockinanaggregateamountnottoexceed$100,000,000duringthetermofthisAgreement.

8.07ChangeinNatureofBusiness.

Engage in any material line of business substantially different from those lines of business conducted by the Company and itsSubsidiariesontheClosingDateoranybusinesssubstantiallyrelatedorincidentalthereto.

8.08TransactionswithAffiliatesandInsiders.

Enterintoorpermittoexistanytransactionorseriesoftransactionswithanyofficer,directororAffiliateofsuchPersonotherthan(a)advances of working capital to any Loan Party, (b) transfers of cash and assets to any Loan Party, (c) intercompany transactions expresslypermittedbythisAgreement,(d)normalandreasonablecompensationandreimbursementofexpensesofofficersanddirectorsand(e)exceptasotherwisespecificallylimitedinthisAgreement,othertransactionswhichareenteredintointheordinarycourseofsuch

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Person'sbusinessontermsandconditionssubstantiallyasfavorabletosuchPersonaswouldbeobtainablebyitinacomparablearms‑lengthtransactionwithaPersonotherthananofficer,directororAffiliate.

8.09BurdensomeAgreements.

Enter into, or permit to exist, any Contractual Obligation that (a) encumbers or restricts the ability of any such Person to (i) makeRestrictedPaymentstoanyLoanParty,(ii)payanyIndebtednessorotherobligationowedtoanyLoanParty,(iii)makeloansoradvancestoanyLoanParty, (iv) transfer any of its property to any LoanParty, (v) pledge its property pursuant to the Loan Documents or any renewals,refinancings, exchanges, refundings or extension thereof or (vi) act as a Loan Party pursuant to the Loan Documents or any renewals,refinancings,exchanges,refundingsorextensionthereof,except(inrespectofanyofthemattersreferredtoinclauses(i)‑(v)above)for(1)thisAgreement and the otherLoanDocuments, (2) any document or instrument governing Indebtedness incurred pursuant toSection 8.03(e) , providedthatanysuchrestrictioncontainedthereinrelatesonlytotheassetorassetsconstructedoracquiredinconnectiontherewith,(3)anyPermittedLienoranydocumentorinstrumentgoverninganyPermittedLien,providedthatanysuchrestrictioncontainedthereinrelatesonlytotheassetorassetssubjecttosuchPermittedLien,(4)customaryrestrictionsandconditionscontainedinanyagreementrelatingtothesaleofanypropertypermittedunderSection8.05pendingtheconsummationofsuchsale,or(5)priortotheNotePurchaseAgreementTerminationDate, the Note Purchase Agreementor (b) requires the grant of any security for any obligation if such property is given as security for theObligationsexceptforduringanytimepriortotheNotePurchaseAgreementTerminationDate,theNotePurchaseAgreement.

8.10UseofProceeds.

Use the proceeds of any Credit Extension, whether directly or indirectly, and whether immediately, incidentally or ultimately, topurchaseorcarrymarginstock(withinthemeaningofRegulationUoftheFRB)ortoextendcredittoothersforthepurposeofpurchasingorcarryingmarginstockortorefundindebtednessoriginallyincurredforsuchpurpose.

8.11FinancialCovenants.

(a)Prior to the Note Purchase Agreement Termination Date, the Company will not permit the covenants set forth onExhibit8.11tobeviolated.

(b)At all times after the Note Purchase Agreement Termination Date , the Company will notpermit theConsolidatedEBITDAasoftheendofanyfiscalquarteroftheCompanyforthefourfiscalquarterperiodendingonsuchdatetobelessthan$40,000,000.

8.12PrepaymentofOtherIndebtedness,Etc.

( a )Amend or modify any of the terms of any Indebtedness of the Company or any Subsidiary (other than Indebtedness arisingundertheLoanDocuments)ifsuchamendmentormodificationwouldaddorchangeanytermsinamanneradversetotheCompanyoranySubsidiary, or shorten the final maturity or average life to maturity or require any payment to be made sooner than originally scheduled orincreasetheinterestrateapplicablethereto.

( b )Make (or give any notice with respect thereto) any voluntary or optional payment or prepayment or redemption or acquisitionfor value of (including without limitation, by way of depositing money or securities with the trustee with respect thereto before due for thepurposeofpayingwhendue),refund,refinanceorexchangeofanyIndebtednessoftheCompanyoranySubsidiary(otherthanIndebtednessarisingundertheLoanDocuments).

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8.13OrganizationDocuments;FiscalYear;LegalName,StateofFormationandFormofEntity.

(a)Amend,modifyorchangeitsOrganizationDocumentsinamanneradversetotheLender.

(b)Changeitsfiscalyear.

(c)WithoutprovidingtendayspriorwrittennoticetotheLender,changeitsname,stateofformationorformoforganization.

8.14OwnershipofSubsidiaries.

NotwithstandinganyotherprovisionsofthisAgreementtothecontrary,(a)permitanyPerson(otherthantheCompanyoranywholly-ownedSubsidiary)toownanyEquityInterestsofanySubsidiaryexcepttoqualifydirectorswhererequiredbyapplicableLawortosatisfyotherrequirementsofapplicableLawwithrespecttotheownershipofEquityInterestsofForeignSubsidiaries,or(b)permitanySubsidiarytoissueorhaveoutstandinganysharesofpreferredEquityInterests.

8.15CapitalExpenditures.

PermitConsolidatedCapitalExpenditurestoexceed$5,000,000perfiscalyear.

Notwithstanding anything to the contrary contained inSection 8.15 to the extent that the aggregate amount of Consolidated CapitalExpenditures made by any Loan Party in any fiscal year of the Company is less than the maximum base amount of Consolidated CapitalExpenditurespermittedbySection8.15withrespecttosuchfiscalyear,theamountofsuchdifference(the"RolloverAmount")maybecarriedforwardandusedtomakeadditionalConsolidatedCapitalExpendituresinsubsequentfiscalyearsoftheCompany;providedthattheRolloverAmountaddedtotheamountofConsolidatedCapitalExpenditurespermittedinanyfiscalyearoftheCompanyshallnotexceed$2,500,000.

8.16SyntheticLeasesandSecuritizationTransactions.

Enterinto,orpermittoexist,anySyntheticLeasesorSecuritizationTransactions.

ARTICLEIX

EVENTSOFDEFAULTANDREMEDIES

9.01EventsofDefault.

Eachofthefollowingshallbean“EventofDefault”underthisAgreement:

( a ) Non-Payment . Any Loan Party fails to pay (i) when and as required to be paid herein, and in the currency requiredhereunder,anyamountofprincipalofanyLoanoranyL/CObligation,or(ii)withinthreedaysafterthesamebecomesdue,anyinterestonanyLoan or on any L/C Obligation, or any fee due hereunder, or (iii) within five days after the same becomes due, any other amount payablehereunderorunderanyotherLoanDocument;or

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( b ) Specific Covenants . Any Loan Party fails to perform or observe any term, covenant or agreement contained in any of

Section7.01,7.02,7.03,7.05(a),7.10,7.11or7.13,orArticleVIII;or

(c)Other Defaults . Any Loan Party fails to performor observe any other covenant or agreement (not specified in subsection (a)or(b)above)containedinanyLoanDocumentonitsparttobeperformedorobservedandsuchfailurecontinuesforthirtydaysaftertheearliertooccurof(i)anyResponsibleOfficerofaLoanParty’sacquiringknowledgeofsuchdefaultand(ii)writtennoticethereofshallhavebeenreceivedbytheCompanyfromtheLender;or

(d)Representations and Warranties . Any representation, warranty, certification or statement of fact made or deemed made by oronbehalf of anyLoanPartyherein, inanyotherLoanDocument, or inanydocumentdeliveredinconnectionherewithor therewithshall beincorrectormisleadingwhenmadeordeemedmade;or

( e ) Cross-Default . (i) The Company or any Subsidiary (A) fails to make any payment when due (whether by scheduledmaturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than IndebtednesshereunderandIndebtednessunderSwapContracts)havinganaggregateprincipalamount(includingundrawncommittedoravailableamountsandincludingamountsowingtoallcreditorsunderanycombinedorsyndicatedcreditarrangement)ofmorethantheThresholdAmount,or(B)failstoobserveorperformanyotheragreementorconditionrelatingtoanysuchIndebtednessorGuaranteeorcontainedinanyinstrumentoragreementevidencing,securingorrelatingthereto,oranyothereventoccurs,theeffectofwhichdefaultorothereventistocause,ortopermittheholderorholdersofsuchIndebtednessorthebeneficiaryorbeneficiariesofsuchGuarantee(oratrusteeoragentonbehalfofsuchholderorholdersorbeneficiaryorbeneficiaries)tocause,withthegivingofnoticeifrequired,suchIndebtednesstobedemandedortobecomedueortobe repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem suchIndebtednesstobemade,priortoitsstatedmaturity,orsuchGuaranteetobecomepayableorcashcollateralinrespectthereoftobedemanded;or (ii) there occurs under anySwapContract an Early TerminationDate (as definedin suchSwapContract) resultingfrom(A) anyevent ofdefaultundersuchSwapContractastowhichtheCompanyoranySubsidiaryistheDefaultingParty(asdefinedinsuchSwapContract)or(B)anyTerminationEvent(assodefined)undersuchSwapContractastowhichtheCompanyoranySubsidiaryisanAffectedParty(assodefined)and, in either event, the SwapTermination Value owedby theCompanyor such Subsidiary as a result thereof is greater than the ThresholdAmount;or

( f ) Insolvency Proceedings, Etc. The Company or any Subsidiary institutes or consents to the institution of any proceedingunderanyDebtorReliefLaw,ormakesanassignmentforthebenefitofcreditors;orappliesfororconsentstotheappointmentofanyreceiver,trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver,trustee,custodian,conservator,liquidator,rehabilitatororsimilarofficerisappointedwithouttheapplicationorconsentofsuchPersonandtheappointmentcontinuesundischargedorunstayedforsixtycalendardays;oranyproceedingunderanyDebtorReliefLawrelatingtoanysuchPersonortoalloranymaterialpartofitspropertyisinstitutedwithouttheconsentofsuchPersonandcontinuesundismissedorunstayedforsixtycalendardays,oranorderforreliefisenteredinanysuchproceeding;or

(g)Inability to PayDebts; Attachment . (i)The Companyor anySubsidiarybecomesunable or admits in writingits inability orfailsgenerallytopayitsdebtsastheybecomedue,or(ii)anywritorwarrantofattachmentorexecutionorsimilarprocessisissuedorleviedagainstalloranymaterialpartofthepropertyofanysuchPersonandisnotreleased,vacatedorfullybondedwithinthirtydaysafteritsissueorlevy;or

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( h ) Judgments . There is entered against the Company or any Subsidiary (i) one or more final judgments or orders for the

paymentofmoneyinanaggregateamount(astoallsuchjudgmentsororders)exceedingtheThresholdAmount(totheextentnotcoveredbyindependentthird-partyinsuranceastowhichtheinsurerhasbeennotifiedoftheclaimandhasnotrejectedcoverage),or(ii)anyoneormorenon-monetaryfinaljudgmentsthathave,orcouldreasonablybeexpectedtohave,individuallyorintheaggregate,aMaterialAdverseEffectand,ineithercase,(A)enforcementproceedingsarecommencedbyanycreditoruponsuchjudgmentororder,or(B)thereisaperiodofthirtyconsecutivedaysduringwhichastayofenforcementofsuchjudgment,byreasonofapendingappealorotherwise,isnotineffect;or

( i ) ERISA . (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or couldreasonablybeexpectedtoresultinliabilityofanyLoanPartyunderTitleIVofERISAtothePensionPlan,MultiemployerPlanorthePBGCinanaggregateamountinexcessoftheThresholdAmount,or(ii)theCompanyoranyERISAAffiliatefailstopaywhendue,aftertheexpirationof any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under aMultiemployerPlaninanaggregateamountinexcessoftheThresholdAmount;or

( j ) Invalidity of Loan Documents . Any Loan Document, at any time after its execution and delivery and for any reason otherthanasexpresslypermittedhereunderorthereunderorsatisfactioninfullofalltheObligations,ceasestobeinfullforceandeffect;oranyLoanPartyoranyotherPersoncontestsinanymannerthevalidityorenforceabilityofanyLoanDocument;oranyLoanPartydeniesthatithasanyorfurtherliabilityorobligationunderanyLoanDocument,orpurportstorevoke,terminateorrescindanyLoanDocument;or

(k)ChangeofControl.ThereoccursanyChangeofControl;or

( l )Material Adverse Effect . An event or condition that has occurred that has had or could reasonably be expected to have aMaterialAdverseEffect.

9.02RemediesUponEventofDefault.

IfanyEventofDefaultoccursandiscontinuing,theLendermaytakeanyorallofthefollowingactions:

(a)declaretheCommitmentstobeterminated,whereupontheCommitmentsshallbeterminated;

( b ) declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all otheramounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment,demand,protestorothernoticeofanykind,allofwhichareherebyexpresslywaivedbytheBorrowers;

( c ) require that the Borrower s Cash Collateralize the L/C Obligations (in an amount equal to the then OutstandingAmountthereof);and

(d)exerciseallrightsandremediesavailabletoitundertheLoanDocuments;

provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to anyBorrowerunder theBankruptcy Code of the United States, the obligation of the Lender to make Loans and make L/C Credit Extensions shall automaticallyterminate,theunpaidprincipalamountofalloutstandingLoansandallinterestandotheramountsasaforesaidshallautomaticallybecomedueand

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payable, andtheobligationof theBorrowersto CashCollateralize theL/CObligationsas aforesaidshall automatically becomeeffective, ineachcasewithoutfurtheractoftheLender.

TheLendermay, at anytimeandfromtimeto timeafter the initial deposit of CashCollateralpursuant toSection9.02(c) , requ irethattheBorrowersprovideadditionalCashCollateral(andtheBorrowersshall,fromtimetotimeaftertheinitialdepositofCashCollateral,providesuchadditional Cash Collateral) in an amount not to exceed 105%of the Outstanding Amount of such L/CObligations , in order to protectagainsttheresultsofexchangeratefluctuations.

9.03ApplicationofFunds.

AftertheexerciseofremediesprovidedforinSection9.02(oraftertheLoanshaveautomaticallybecomeimmediatelydueandpayableandtheL/CObligationshaveautomaticallybeenrequiredtobeCashCollateralizedassetforthintheprovisotoSection9.02),anyamountsreceivedonaccountoftheObligationsshallbeappliedbytheLenderinitssolediscretion.Notwithstandingtheforegoing,paymentsprovidedbyaDesignatedBorrowershallonlybeappliedtotheObligationsofsuchDesignatedBorrower.

ARTICLEX

[RESERVED]

ARTICLEXI

MISCELLANEOUS

11.01Amendments,Etc.

NoamendmentorwaiverofanyprovisionofthisAgreementoranyotherLoanDocument,andnoconsenttoanydeparturebyanyLoanPartytherefrom,shall beeffectiveunlessinwritingsignedbytheLenderandtheLoanParties, as thecasemaybe, andeachsuchwaiverorconsentshallbeeffectiveonlyinthespecificinstanceandforthespecificpurposeforwhichgiven.

11.02Notices;Effectiveness;ElectronicCommunications.

( a ) Notices Generally . Except in the case of notices and other communications expressly permitted to be given by telephone(and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall bedeliveredbyhandorovernightcourierservice,mailedbycertifiedorregisteredmailorsentbytelecopierasfollows,andallnoticesandothercommunications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, to the address,telecopiernumber,electronicmailaddressortelephonenumberspecifiedforsuchPersononSchedule11.02.

Noticesandothercommunicationssentbyhandorovernightcourierservice,ormailedbycertifiedorregisteredmail,shallbedeemedtohavebeengivenwhenreceived;noticesandothercommunicationssentbytelecopiershallbedeemedtohavebeengivenwhensent(exceptthat,ifnotgivenduringnormalbusinesshoursfortherecipient,shallbedeemedtohavebeengivenattheopeningofbusinessonthenextbusinessdayfortherecipient).Noticesandothercommunicationsdeliveredthroughelectronic

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communicationstotheextentprovidedinsubsection(b)below,shallbeeffectiveasprovidedinsuchsubsection(b).

( b ) Electronic Communications . The Lender or any Borrower may, in its discretion, agree to accept notices and othercommunicationstoithereunderbyelectroniccommunicationspursuanttoproceduresapprovedbyit,providedthatapprovalofsuchproceduresmaybelimitedtoparticularnoticesorcommunications.

UnlesstheLenderotherwiseprescribes,(i)noticesandothercommunicationssenttoane-mailaddressshallbedeemedreceiveduponthesender'sreceiptofanacknowledgementfromtheintendedrecipient(suchasbythe"returnreceiptrequested"function,asavailable,returne-mailorotherwrittenacknowledgement),providedthatifsuchnoticeorothercommunicationisnotsentduringthenormalbusinesshoursoftherecipient,suchnoticeorcommunicationshallbedeemedtohavebeensentattheopeningofbusinessonthenextbusinessdayfortherecipient,and(ii)noticesorcommunicationspostedtoanInternetorintranetwebsiteshallbedeemedreceiveduponthedeemedreceiptbytheintendedrecipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available andidentifyingthewebsiteaddresstherefor.

( c )Change of Address, Etc . AnyBorrower and the Lendermay change its address, telecopier or telephone number for noticesandothercommunicationshereunderbynoticetotheotherpartieshereto.

(d)Relianceby theLender. The Lender shall be entitled to rely and act upon any notices (including telephonic Loan Notices)purportedlygivenbyonbehalfofanyLoanPartyevenif(i)suchnoticeswerenotmadeinamannerspecifiedherein,wereincompleteorwerenotprecededorfollowedbyanyotherformofnoticespecifiedherein,or(ii)thetermsthereof,asunderstoodbytherecipient,variedfromanyconfirmationthereof.TheLoanPartiesshallindemnifytheLenderanditsRelatedPartiesfromalllosses,costs,expensesandliabilitiesresultingfromthereliancebysuchPersononeachnoticepurportedlygivenbyonbehalfofaLoanParty.AlltelephonicnoticestoandothertelephoniccommunicationswiththeLendermayberecordedbytheLender,andeachofthepartiesheretoherebyconsentstosuchrecording.

11.03NoWaiver;CumulativeRemedies;Enforcement.

NofailurebytheLendertoexercise,andnodelaybyanysuchPersoninexercising,anyright,remedy,powerorprivilegehereundershalloperateasawaiverthereof;norshallanysingleorpartialexerciseofanyright,remedy,powerorprivilegehereunderorunderanyotherLoan Document preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights,remedies,powersandprivilegeshereinprovided,andprovidedundereachotherLoanDocumentarecumulativeandnotexclusiveofanyrights,remedies,powersandprivilegesprovidedbylaw.

11.04Expenses;Indemnity;andDamageWaiver.

( a )Costs and Expenses . The Loan Parties shall pay (i) all reasonable out ‑of ‑pocket expenses incurred by the Lender and itsAffiliates(includingthereasonablefees,chargesanddisbursementsofcounselfortheLender),inconnectionwiththepreparation,negotiation,execution,deliveryandadministrationofthisAgreementandtheotherLoanDocumentsoranyamendments, modificationsorwaiversoftheprovisionshereoforthereof(whetherornotthetransactionscontemplatedherebyortherebyshallbeconsummated),(ii)allreasonableout‑of‑pocket expenses incurred by the Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or anydemand for payment thereunder and (iii) all reasonable out ‑of ‑pocket expenses incurred by the Lender (including the fees, charges anddisbursementsofanycounselfortheLender),andshallpayallfeesandtimechargesfor

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attorneys who may be employees of the Lender, in connection with the enforcement or protection of its rights (A) in connection with thisAgreementandtheotherLoanDocuments,includingitsrightsunderthisSection,or(B)inconnectionwiththeLoansmadeorLettersofCreditissuedhereunder,includingallsuchout‑of‑pocketexpensesincurredduringanyworkout,restructuringornegotiationsinrespectofsuchLoansorLettersofCredit.

( b ) Indemnification . The Loan Parties shall indemnify the Lender and each Related Party (each such Person being called an "Indemnitee")against,andholdeachIndemniteeharmlessfrom,anyandalllosses,claims,damages,liabilitiesandrelatedexpenses(includingthefees,chargesanddisbursementsofanycounselforanyIndemnitee),andshallindemnifyandholdharmlesseachIndemniteefromallfeesandtimechargesanddisbursementsforattorneyswhomaybeemployeesofanyIndemnitee,incurredbyanyIndemniteeorassertedagainstanyIndemnitee by any third party or by any Loan Party arising out of, in connection with, or as a result of (i) the execution or delivery of thisAgreement,anyotherLoanDocumentoranyagreementorinstrumentcontemplatedherebyorthereby,theperformancebythepartiesheretooftheir respective obligations hereunder or thereunder or the consummation of the transactions con templated hereby or thereby, or theadministrationofthisAgreementandtheotherLoanDocuments(includinginrespectofanymattersaddressedinSection3.01),(ii)anyLoanorLetterofCreditortheuseorproposeduseoftheproceedstherefrom(includinganyrefusaltohonorademandforpaymentunderaLetterofCreditifthedocumentspresentedinconnectionwithsuchdemanddonotstrictlycomplywiththetermsofsuchLetterofCredit),(iii)anyactualorallegedpresenceorreleaseofHazardousMaterialsonorfromanypropertyownedoroperatedbytheCompanyoranyofitsSubsidiaries,oranyEnvironmentalLiabilityrelatedinanywaytotheCompanyoranyofitsSubsidiaries,or(iv)anyactualorprospectiveclaim,litigation,investigationorproceedingrelatingtoanyoftheforegoing,whetherbasedoncontract,tortoranyothertheory,whetherbroughtbyathirdpartyorbyanyLoanParty,andregardlessofwhetheranyIndemniteeisapartythereto;providedthatsuchindemnityshallnot,astoanyIndemnitee,beavailabletotheextentthatsuchlosses,claims,damages,liabilitiesorrelatedexpenses(x)aredeterminedbyacourtofcompetentjurisdictionbyfinalandnonappealablejudgmenttohaveresultedfromthegrossnegligenceorwillfulmisconductofsuchIndemniteeor(y)resultfromaclaimbroughtbyanyLoanPartyagainstanIndemniteeforbreachinbadfaithofsuchIndemnitee's obligationshereunderorunderanyotherLoanDocument, if suchLoanParty has obtaineda final andnonappealable judgment in its favor onsuchclaimas determinedbya court ofcompetentjurisdiction.

( c ) Waiver of Consequential Damages, Etc. To the fullest extent permitted by applicable law, no Loan Party shall assert, andeach Loan Party hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitivedamages(asopposedtodirectoractualdamages)arisingoutof,inconnectionwith,orasaresultof,thisAgreement,anyotherLoanDocumentoranyagreementorinstrumentcontemplatedhereby,thetransactionscontemplatedherebyorthereby,anyLoanorLetterofCreditortheuseofthe proceeds thereof. NoIndemnitee referred to in subsection (b) above shall be liable for any damages arising fromthe use by unintendedrecipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications,electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactionscontemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of suchIndemniteeasdeterminedbyafinalandnonappealablejudgmentofacourtofcompetentjurisdiction.

(d)Payments.AllamountsdueunderthisSectionshallbepayablenotlaterthantenBusinessDaysafterdemandtherefor.

( e ) Survival . The agreements in this Section shall survive the termination of the Commitments and the repayment, satisfactionordischargeofalltheotherObligations.

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11.05PaymentsSetAside.

TotheextentthatanypaymentbyoronbehalfofanyLoanPartyismadetotheLender,ortheLenderexercisesitsrightofsetoff,andsuchpaymentortheproceedsofsuchsetofforanypartthereofissubsequentlyinvalidated,declaredtobefraudulentorpreferential,setasideorrequired(includingpursuanttoanysettlemententeredintobytheLenderinitsdiscretion)toberepaidtoatrustee,receiveroranyotherparty,inconnectionwithanyproceedingunderanyDebtorReliefLaworotherwise,thentotheextentofsuchrecovery,theobligationorpartthereoforiginallyintendedtobesatisfiedshallberevivedandcontinuedinfullforceandeffectasifsuchpaymenthadnotbeenmadeorsuchsetoffhadnotoccurred.

11.06SuccessorsandAssigns.

( a ) Successors and Assigns Generally . The provisions of this Agreement and the other Loan Documents shall be binding upon andinuretothebenefitofthepartiesheretoandtheretoandtheirrespectivesuccessorsandassignspermittedhereby,exceptthatnoBorrowermayassignorotherwisetransferanyofitsrightsorobligationshereunderorthereunderwithoutthepriorwrittenconsentoftheLender.NothinginthisAgreement,expressedorimplied,shallbeconstruedtoconferuponanyPerson(otherthanthepartieshereto,theirrespectivesuccessorsandassigns permitted hereby, p articipants and, to the extent expressly contemplated hereby, the Related Parties of the Lender ) any legal orequitableright,remedyorclaimunderorbyreasonofthisAgreement.

( b )Assignments . The Lender may at Lender’s sole cost and expense (so long as no Default exists) at any time assign to one or moreEligibleAssigneesalloraportionofitsrightsandobligationsunderthisAgreementandtheotherLoanDocuments(includingalloraportionofitsCommitmentsandtheLoansatthetimeowingtoit)pursuanttodocumentationacceptabletotheLenderandtheassignee.TheLendermayalsoatLender’ssolecostandexpense(solongasnoDefaultexists)sellparticipationsinitsrightsandobligationsunderthisAgreement.ThereshallnotbeanyassignmentorparticipationfeepayablebytheLoanParties.

11.07TreatmentofCertainInformation;Confidentiality.

TheLenderagreestomaintaintheconfidentialityoftheInformation(asdefinedbelow),exceptthatInformationmaybedisclosed(a)toitsAffiliatesandtoitsanditsAffiliates'respectivepartners,directors,officers,employees,agents,trustees,advisorsandrepresentatives(itbeingunderstoodthatthePersonstowhomsuchdisclosureismadewillbeinformedoftheconfidentialnatureofsuchInformationandinstructedtokeepsuchInformationconfidential),(b)totheextentrequestedbyanyregulatoryauthoritypurportingtohavejurisdictionoverit(includinganyself-regulatoryauthority),(c)totheextentrequiredbyapplicablelawsorregulationsorbyanysubpoenaorsimilarlegalprocess,(d)toanyotherpartyhereto,(e)inconnectionwiththeexerciseofanyremedieshereunderorunderanyotherLoanDocumentoranyactionorproceedingrelating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreementcontainingprovisionssubstantiallythesameasthoseofthisSection,to(i)anyassigneeoforparticipantin,oranyprospectiveassigneeoforparticipantin,anyofitsrightsorobligationsunderthisAgreementor(ii)anyactualorprospectivecounterparty(oritsadvisors)toanyswaporderivativetransactionrelatingtoaLoanPartyanditsobligations,(g)withtheconsentoftheCompanyor(h)totheextentsuchInformation(x)becomespubliclyavailableotherthanasaresultofabreachofthisSectionor(y)becomesavailabletotheLenderoranyofitsAffiliatesonanonconfidentialbasisfromasourceotherthantheLoanParties.

For purposes of this Section, " Information " means all information received from the Company or any Subsidiary relating to theCompany or any Subsidiary or any of their respective businesses, other than any such information that is available to the Lender on anonconfidentialbasispriortodisclosurebythe

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CompanyoranySubsidiary.AnyPersonrequiredtomaintaintheconfidentialityofInformationasprovidedinthisSectionshallbeconsideredto have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of suchInformationassuchPersonwouldaccordtoitsownconfidentialinformation.

The Lender acknowledges that (a) the Information may include material non-public information concerning the Company or aSubsidiary,asthecasemaybe,(b)ithasdevelopedcomplianceproceduresregardingtheuseofmaterialnon-publicinformationand(c)itwillhandlesuchmaterialnon-publicinformationinaccordancewithapplicableLaw,includingFederalandstatesecuritiesLaws.

11.08Set-off.

IfanEventofDefaultshallhaveoccurredandbecontinuing,theLenderandeachofitsAffiliatesisherebyauthorizedatanytimeandfromtimetotime,tothefullestextentpermittedbyapplicablelaw,tosetoffandapplyanyandalldeposits(generalorspecial,timeordemand,provisionalorfinal) at anytimeheldandotherobligationsat anytimeowingbytheLenderoranysuchAffiliatetoorforthecredit or theaccountofanyLoanPartyagainstanyandalloftheobligationsofsuchLoanPartynoworhereafterexistingunderthisAgreementoranyotherLoanDocumenttotheLender,irrespectiveofwhetherornottheLendershallhavemadeanydemandunderthisAgreementoranyotherLoanDocumentandalthoughsuchobligationsofsuchLoanPartymaybecontingentorunmaturedorareowedtoabranchorofficeoftheLenderdifferentfromthebranchorofficeholdingsuchdepositorobligatedonsuchindebtedness.TherightsoftheLenderanditsAffiliatesunderthisSectionare in additionto other rights andremedies (includingother rights of setoff) that theLenderoritsAffiliates mayhave. TheLenderagreestonotifytheCompanypromptlyafteranysuchsetoffandapplication,providedthatthefailuretogivesuchnoticeshall notaffectthevalidityofsuchsetoffandapplication.

11.09InterestRateLimitation.

Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the LoanDocumentsshall notexceedthemaximumrateofnon-usuriousinterest permittedbyapplicableLaw(the"MaximumRate"). IftheLendershall receiveinterest in anamount that exceedsthe MaximumRate, the excess interest shall beappliedto theprincipal of the Loansor, if itexceedssuchunpaidprincipal,refundedtotheCompany.Indeterminingwhethertheinterestcontractedfor,charged,orreceivedbytheLenderexceedstheMaximumRate,suchPersonmay,totheextentpermittedbyapplicableLaw,(a)characterizeanypaymentthatisnotprincipalasanexpense,fee,orpremiumratherthaninterest,(b)excludevoluntaryprepaymentsandtheeffectsthereof,and(c)amortize,prorate,allocate,andspreadinequalorunequalpartsthetotalamountofinterestthroughoutthecontemplatedtermoftheObligationshereunder.

11.10Counterparts;Integration;Effectiveness.

ThisAgreementmaybeexecutedincounterparts(andbydifferentpartiesheretoindifferentcounterparts),eachofwhichshallconstituteanoriginal,butallofwhichwhentakentogethershallconstituteasinglecontract.ThisAgreementandtheotherLoanDocumentsconstitutetheentirecontractamongthepartiesrelatingtothesubjectmatterhereofandsupersedeanyandallpreviousagreementsandunderstandings,oralorwritten,relatingtothesubjectmatterhereof.ExceptasprovidedinSection5.01,thisAgreementshallbecomeeffectivewhenitshallhavebeenexecutedbytheLenderandwhentheLendershallhavereceivedcounterpartshereofthat,whentakentogether,bearthesignaturesofeachoftheotherpartieshereto.DeliveryofanexecutedcounterpartofasignaturepageofthisAgreementbytelecopyorotherelectronicimagingmeansshallbeeffectiveasdeliveryofamanuallyexecutedcounterpartofthisAgreement.

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11.11SurvivalofRepresentationsandWarranties.

All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto ortheretoorinconnectionherewithortherewithshallsurvivetheexecutionanddeliveryhereofandthereof.SuchrepresentationsandwarrantieshavebeenorwillberelieduponbytheLender,regardlessofanyinvestigationmadebytheLenderorontheirbehalfandnotwithstandingthattheLendermayhavehadnoticeorknowledgeofanyDefaultatthetimeofanyCreditExtension,andshallcontinueinfullforceandeffectaslongasanyLoanoranyotherObligationhereundershallremainunpaidorunsatisfiedoranyLetterofCreditshallremainoutstanding.

11.12Severability.

IfanyprovisionofthisAgreementortheotherLoanDocumentsisheldtobeillegal,invalidorunenforceable,(a)thelegality,validityandenforceabilityoftheremainingprovisionsofthisAgreementandtheotherLoanDocumentsshallnotbeaffectedorimpairedtherebyand(b)thepartiesshallendeavoringoodfaithnegotiationstoreplacetheillegal,invalidorunenforceableprovisionswithvalidprovisionstheeconomiceffectofwhichcomesascloseaspossibletothatoftheillegal,invalidorunenforceableprovisions.Theinvalidityofaprovisioninaparticularjurisdictionshallnotinvalidateorrenderunenforceablesuchprovisioninanyotherjurisdiction.

11.13ServiceofProcessontheDesignatedBorrowers.

Each Designated Borrower hereby irrevocably designates, appoints and empowers the Company , and successors as the designee,appointeeandagentofsuchDesignatedBorrowertoreceive,acceptandacknowledge,forandonbehalfofsuchDesignatedBorroweranditsproperties,serviceofanyandalllegalprocess,summons,noticesanddocumentswhichmaybeservedinsuchaction,suitorproceedingrelatingtothisAgreementortheLoanDocumentsinthecaseofthecourtsoftheSouthernDistrictofCaliforniaorofthecourtsoftheStateofCaliforniasittinginthecityofSanDiego,whichservice maybe madeonanysuchdesignee, appointee andagent in accordancewith legal proceduresprescribedforsuchcourts.EachDesignatedBorroweragreestotakeanyandallactionnecessarytocontinuesuchdesignationinfullforceandeffect and should such designee, appointee and agent become unavailable for this purpose for any reason, such Designated Borrower willforthwith irrevocably designate a new designee, appointee and agent, which shall irrevocably agree to act as such, with the powers and forpurposes specifiedin thisSection11.13 . Each Designated Borrower further irrevocably consents and agrees to service of any and all legalprocess,summons,noticesanddocumentsoutofanyoftheaforesaidcourtsinanysuchaction,suitorproceedingrelatingtotheNotesorthisAgreementortheotherLoanDocumentsdeliveredtosuchDesignatedBorrowerinaccordancewiththisSection11.13ortoitsthendesignee,appointee or agent for service. If service is made upon such designee, appointee and agent, a copy of such process, summons, notice ordocumentshallalsobeprovidedtotheapplicableDesignatedBorrowerattheaddressspecifiedinSchedule11.02byregisteredorcertifiedmail,orovernightexpressaircourier;providedthatfailureofsuchholdertoprovidesuchcopytosuchDesignatedBorrowershallnotimpairoraffectinanywaythevalidityofsuchserviceoranyjudgmentrenderedinsuchactionorproceedings.EachDesignatedBorroweragreesthatserviceuponsuchDesignatedBorroweroranysuchdesignee,appointeeandagentasprovidedforhereinshallconstitutevalidandeffectivepersonalserviceuponsuchDesignatedBorrowerwithrespecttomatterscontemplatedinthisSection11.13andthatthefailureofanysuchdesignee,appointeeandagenttogiveanynoticeofsuchservicetosuchDesignatedBorrowershallnotimpairoraffectinanywaythevalidityofsuchserviceoranyjudgmentrenderedinanyactionorproceedingbasedthereon.Nothinghereinshall,orshallbeconstruedsoasto,limittherightoftheLendertobringactions,suitsorproceedingswithrespecttotheobligationsandliabilitiesofeachDesignatedBorrowerunder,oranyothermatterarisingoutoforinconnectionwith,thisAgreement,orforrecognitionorenforcementofanyjudgmentrendered

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in anysuchaction, suit or proceeding, in the courts of whatever jurisdictionin whichthe respective offices of theLendermaybelocatedorassetsofsuchDesignatedBorrowermaybefoundorastheLenderotherwisedeemsappropriate,ortoaffecttherighttoserviceofprocessinanyjurisdictioninanyothermannerpermittedbylaw.

11.14GoverningLaw.

THISAGREEMENTSHALLBEGOVERNEDBY,ANDCONSTRUEDINACCORDANCEWITH,THELAWOFTHESTATEOFCALIFORNIA.

11.15DisputeResolution;WaiverofRighttoTrialbyJury.

( a )This Section 11.15(a) is referred to as the "Dispute Resolution Provision . " This Dispute Resolution Provision is a materialinducementforthepartiesenteringintothisAgreement.

( i ) This Dispute Resolution Provision concerns the resolution of any controversies or claims between the parties, whetherarisingincontract,tortorbystatute,includingbutnotlimitedtocontroversiesorclaimsthatariseoutoforrelateto:(i)thisAgreement(includinganyrenewals,extensionsormodifications);or(ii)anydocumentrelatedtothisAgreement(collectivelya"Claim").ForthepurposesofthisDisputeResolutionProvisiononly,theterm“parties”shallincludeanyparentcorporation,SubsidiaryorAffiliateoftheLenderinvolvedintheservicing,managementoradministrationofanyobligationdescribedorevidencedbythisAgreement.

( ii )At the request of any party to this Agreement , any Claim shall be resolved by binding arbitration in accordance withthe Federal Arbitration Act (Title 9, U.S. Code) (the "Act "). The Act will apply even though this Agreement provides that it isgovernedbythelawofaspecifiedstate.

( iii )Arbitration proceedings will be determined in accordance with the Act, the then-current rules and procedures for thearbitrationoffinancialservicesdisputesoftheAmericanArbitrationAssociationoranysuccessorthereof("AAA"),andthetermsofthisDisputeResolutionProvision. Intheeventofanyinconsistency,thetermsofthisDisputeResolutionProvisionshall control. IfAAAisunwillingorunableto(i)serveastheproviderofarbitrationor(ii)enforceanyprovisionofthisarbitrationclause,theLendermaydesignateanotherarbitrationorganizationwithsimilarprocedurestoserveastheproviderofarbitration.

( iv ) The arbitration shall be administered by AAA and conducted, unless otherwise required by law, in any U.S. statewhererealortangiblepersonalpropertycollateralforthiscreditislocatedorifthereisnosuchcollateral,inthestatespecifiedinthegoverninglawsectionofthisAgreement. All Claimsshall bedeterminedbyonearbitrator; however, if ClaimsexceedFiveMillionDollars ($5,000,000), upon the request of any party, the Claims shall be decided by three arbitrators. All arbitration hearings shallcommencewithinninety(90)daysofthedemandforarbitrationandclosewithinninety(90)daysofcommencementandtheawardofthearbitrator(s)shallbeissuedwithinthirty(30)daysofthecloseofthehearing.However,thearbitrator(s),uponashowingofgoodcause,mayextendthecommencementofthehearingforuptoanadditionalsixty(60)days.Thearbitrator(s)shallprovideaconcisewrittenstatementofreasonsfortheaward.Thearbitrationawardmaybesubmittedtoanycourthavingjurisdictiontobeconfirmedandhavejudgmententeredandenforced.

( v )The arbitrator(s) will give effect to statutes of limitation in determining any Claim and shall dismiss the arbitration iftheClaimisbarredundertheapplicablestatutesoflimitation.

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Forpurposesoftheapplicationofanystatutesoflimitation,theserviceonAAAunderapplicableAAArulesofanoticeofClaimistheequivalent of the filing of a lawsuit. Any dispute concerning this arbitration provision or whether a Claim is arbitrable shall bedeterminedbythearbitrator(s),exceptassetforthatsubparagraph(x)ofthisDisputeResolutionProvision.Thearbitrator(s)shallhavethepowertoawardlegalfeespursuanttothetermsofthisAgreement.

( vi ) The procedure described above will not apply if the Claim, at the time of the proposed submission to arbitration,arises fromor relates to an obligationto theLendersecured byreal property. In this case, all of the parties to this AgreementmustconsenttosubmissionoftheClaimtoarbitration.

(vii)To the extent any Claims are not arbitrated, to the extent permitted by lawthe Claims shall be resolved in court by ajudgewithoutajury,exceptanyClaimswhicharebroughtinCaliforniastatecourtshallbedeterminedbyjudicialreferenceasdescribedbelow.

( viii ) Any Claim which is not arbitrated and which is brought in California state court will be resolved by a generalreferencetoareferee(orapanelofreferees)asprovidedinCaliforniaCodeofCivilProcedureSection638.Thereferee(orpresidingrefereeofthepanel)shallbearetiredJudgeorJustice.Thereferee(orpanelofreferees)shallbeselectedbymutualwrittenagreementoftheparties.Ifthepartiesdonotagree,therefereeshallbeselectedbythePresidingJudgeoftheCourt(orhisorherrepresentative)asprovidedinCaliforniaCodeofCivilProcedureSection638andthefollowingrelatedsections.Therefereeshalldetermineallissues,whetheroffactorlaw,inaccordancewithexistingCalifornialawandtheCaliforniarulesofevidenceandcivilprocedure.Therefereeshallbeempoweredtoenterequitableaswellaslegalrelief,providealltemporaryorprovisionalremedies,enterequitableordersthatwill be binding on the parties and rule on any motion which would be authorized in a trial, including without limitation motions forsummaryjudgmentorsummaryadjudication.Theawardthatresultsfromthedecisionofthereferee(s)willbeenteredasajudgmentinthe court that appointed the referee, in accordance with the provisions of California Code of Civil Procedure Sections 644(a) and645.Thepartiesreservetherighttoseekappellatereviewofanyjudgmentororder,includingbutnotlimitedto,orderspertainingtoclasscertification,tothesameextentpermittedinacourtoflaw.

(ix)This Dispute Resolution Provision does not limit the right of any party to: (i) exercise self-help remedies, such as butnotlimitedto, setoff; (ii) initiatejudicial or non-judicial foreclosureagainst anyreal or personal propertycollateral; (iii) exerciseanyjudicialorpowerofsalerights,or(iv)actinacourtoflawtoobtainaninterimremedy,suchasbutnotlimitedto,injunctiverelief,writof possession or appointment of a receiver, or additional or supplementary remedies. The filing of a court action is not intended toconstitute a waiver of the right of any party, including the suing party, thereafter to require submittal of the Claim to arbitration orjudicialreference.

( x )Any arbitration or court trial (whether before a judge or jury or pursuant to judicial reference) of any Claim will takeplaceonanindividualbasiswithoutresorttoanyformofclassorrepresentativeaction(the“ClassActionWaiver”).TheClassActionWaiver precludes any party from participating in or being represented in any class or representative action regarding aClaim. Regardless of anything else in this Dispute Resolution Provision, the validity and effect of the Class Action Waiver may bedeterminedonlybyacourtorrefereeandnotbyanarbitrator.ThepartiestothisAgreementacknowledgethattheClassActionWaiverismaterialandessentialtothearbitrationofanydisputesbetweenthepartiesandisnonseverablefromtheagreementtoarbitrateClaims.IftheClassActionWaiverislimited,voidedorfoundunenforceable,thentheparties’agreementtoarbitrateshallbenullandvoidwithrespecttosuchproceeding,subjecttotherightto

61

appealthelimitationorinvalidationoftheClassActionWaiver.The Parties acknowledge and agree that under no circumstanceswill a class action be arbitrated.

( b )By agreeing to binding arbitration or judicial reference, the parties irrevocably and voluntarily waive any right they may haveto a trial by jury as permitted by law in respect of any Claim. Furthermore, without intending in any way to limit this Dispute ResolutionProvision,totheextentanyClaimisnotarbitratedorsubmittedtojudicialreference,thepartiesirrevocablyandvoluntarilywaiveanyrighttheymayhavetoatrialbyjurytotheextentpermittedbylawinrespectofsuchClaim.ThiswaiverofjurytrialshallremainineffecteveniftheClass Action Waiver is limited, voided or found unenforceable. WHETHER THE CLAIM IS DECIDED BY ARBITRATION, BYJUDICIAL REFERENCE, OR BY TRIAL BY A JUDGE, THE PARTIES AGREE AND UNDERSTAND THAT THE EFFECT OFTHIS AGREEMENT IS THAT THEY ARE GIVING UP THE RIGHT TO TRIAL BY JURY TO THE EXTENT PERMITTED BYLAW.

11.16ElectronicExecutionofAssignmentsandCertainOtherDocuments.

Thewords"execution,""signed,""signature,"andwordsoflikeimportinanyamendmentorothermodificationhereof(includingwaiversandconsents)shallbedeemedtoincludeelectronicsignaturesorthekeepingofrecordsinelectronicform,eachofwhichshallbeofthesamelegaleffect,validityorenforceabilityasamanuallyexecutedsignatureortheuseofapaper-basedrecordkeepingsystem,asthecasemaybe,totheextentandasprovidedforinanyapplicablelaw,includingtheFederalElectronicSignaturesinGlobalandNationalCommerceAct,theNewYorkStateElectronicSignaturesandRecordsAct,oranyothersimilarstatelawsbasedontheUniformElectronicTransactionsAct.

11.17USAPATRIOTActNotice.

TheLenderherebynotifieseachLoanPartythatpursuanttotherequirementsoftheUSAPATRIOTAct(TitleIIIofPub.L.107-56(signedintolawOctober26,2001))(the"Act"),itisrequiredtoobtain,verifyandrecordinformationthatidentifiestheLoanParties,whichinformationincludesthenameandaddressoftheLoanPartiesandotherinformationthatwillallowtheLendertoidentifytheLoanPartiesinaccordancewiththeAct.TheLoanPartiesshall,promptlyfollowingarequestbytheLender,providealldocumentationandotherinformationthattheLenderrequestsinordertocomplywithitsongoingobligationsunderapplicable"knowyourcustomer"andanti-moneylaunderingrulesandregulations,includingtheAct.

11.18JudgmentCurrency.

If,forthepurposesofobtainingjudgmentinanycourt,itisnecessarytoconvertasumduehereunderoranyotherLoanDocumentinonecurrencyintoanothercurrency,therateofexchangeusedshallbethatatwhichinaccordancewithnormalbankingprocedurestheLendercouldpurchasethefirstcurrencywithsuchothercurrencyontheBusinessDayprecedingthatonwhichfinaljudgmentisgiven.TheobligationoftheBorrowersinrespectofanysuchsumduefromittotheLenderhereunderorundertheotherLoanDocumentsshall,notwithstandinganyjudgment in a currency (the " Judgment Currency ") other than that in which such sum is denominated in accordance with the applicableprovisionsofthisAgreement(the"AgreementCurrency"),bedischargedonlytotheextentthatontheBusinessDayfollowingreceiptbytheLenderofanysumadjudgedtobesodueintheJudgmentCurrency,theLendermayinaccordancewithnormalbankingprocedurespurchasetheAgreementCurrencywiththeJudgmentCurrency.IftheamountoftheAgreementCurrencysopurchasedislessthanthesumoriginallyduetotheLender from the Borrower s in the Agreement Currency, the Borrower s agree, as a separate obligation and notwithstanding any suchjudgment, to indemnify theLender or the Person to whom such obligation was owing against such loss. If the amount of the AgreementCurrencysopurchasedisgreaterthanthesum

62

originallyduetotheLenderinsuchcurrency,theLenderagreestoreturntheamountofanyexcesstotheBorrowers(ortoanyotherPersonwhomaybeentitledtheretounderapplicablelaw).

[SIGNATUREPAGESFOLLOW]

63

BORROWER: WD-40COMPANY,aDelawarecorporation

By:/s/JAYREMBOLTName:JayRemboltTitle:CFO

GUARANTOR: HPDHOLDINGSCORP.,aDelawarecorporation

By:/s/JAYREMBOLTName:JayRemboltTitle:CFO

WD-40MANUFACTURINGCOMPANYaCaliforniacorporation

By:/s/JAYREMBOLTName:JayRemboltTitle:CFO

HPDLABORATORIES,INC.,aDelawarecorporation

By:/s/JAYREMBOLTName:JayRemboltTitle:CFO

HEARTLANDCORPORATION,aKansascorporation

By:/s/JAYREMBOLTName:JayRemboltTitle:CFO

64

HPDPROPERTIES,L.L.C.,aDelawarelimitedliabilitycompany

By:/s/JAYREMBOLTName:JayRemboltTitle:CFO

LENDER: BANKOFAMERICA,N.A.,asaLender

By:/s/CHRISTOPHERD.PANNACCIULLIName:ChristopherD.PannacciulliTitle:SeniorVicePresident

INWITNESSWHEREOF,thepartiesheretohavecausedthisAgreementtobedulyexecutedasofthedatefirstabovewritten.

Schedule 1.01

MANDATORY COST FORMULAE1. TheMandatoryCost(totheextentapplicable)isanadditiontotheinterestratetocompensateLenderforthecostofcompliancewith:

a. therequirementsoftheBankofEnglandand/ortheFinancialServicesAuthority(“FSA”)(or,ineithercase,anyotherauthoritywhichreplacesalloranyofitsfunctions);or

b. therequirementsoftheEuropeanCentralBank.2. OnthefirstdayofeachInterestPeriod(orassoonaspracticablethereafter)Lendershallcalculate,asapercentagerate,arate(the“

AdditionalCostRate”)forLender,inaccordancewiththeparagraphssetoutbelow.TheMandatoryCostwillbeexpressedasapercentagerateperannum.TheLenderwill,attherequestoftheCompany,delivertotheCompanyastatementsettingforththecalculationofanyMandatoryCost.

3. TheAdditionalCostRateifLenderislendingfromaLendingOfficeinaParticipatingMemberStatewillbethecostofcomplyingwith

theminimumreserverequirementsoftheEuropeanCentralBankinrespectofLoansmadefromthatLendingOffice.4. TheAdditionalCostRateifLenderislendingfromaLendingOfficeintheUnitedKingdomwillbecalculatedbyLenderasfollows: (a) inrelationtoanyLoaninSterling:

AB+C(B-D)+E×0.01 percentperannum100-(A+C) (b) inrelationtoanyLoaninanycurrencyotherthanSterling:

E×0.01

percentperannum300

Where:“A”isthepercentageofEligibleLiabilities(assumingthesetobeinexcessofanystatedminimum)whichLenderisfromtimetotimerequiredtomaintainasaninterestfreecashratiodepositwiththeBankofEnglandtocomplywithcashratiorequirements.“B”isthepercentagerateofinterest(excludingtheApplicableRate,theMandatoryCostandanyinterestchargedonoverdueamountspursuanttoSection2.08(b)and,inthecaseofinterest(otherthanonoverdueamounts)chargedatthedefaultrateofinterestspecifiedintheCreditAgreement,withoutcountinganyincreaseininterestrateeffectedbythechargingofsuchdefaultinterestrate)payablefortherelevantInterestPeriodofsuchLoan.

“C” isthepercentage(ifany)ofEligibleLiabilitieswhichLenderisrequiredfromtimetotimetomaintainasinterestbearingSpecial

DepositswiththeBankofEngland.

“D” isthepercentagerateperannumpayablebytheBankofEnglandtoLenderoninterestbearingSpecialDeposits.

“E” isdesignedtocompensateLenderforamountspayableundertheFeesRegulationsandiscalculatedpursuanttoparagraph7belowandexpressedinpoundsper£1,000,000.

5. ForthepurposesofthisSchedule:

(a) “EligibleLiabilities”and“SpecialDeposits”havethemeaningsgiventothemfromtimetotimeunderorpursuanttotheBankofEnglandAct1998or(asmaybeappropriate)bytheBankofEngland;

(b) “FeesRegulations”meanstheFSASupervisionManualorsuchotherlaworregulationasmaybeinforcefromtimetotimeinrespectofthepaymentoffeesfortheacceptanceofdeposits;

(c) “FeeTariffs”meansthefeetariffsspecifiedintheFeesRegulationsundertheactivitygroupA.1Depositacceptors(ignoringanyminimumfeeorzeroratedfeerequiredpursuanttotheFeesRegulationsbuttakingintoaccountanyapplicablediscountrate);and

(d) “TariffBase”hasthemeaninggiventoitin,andwillbecalculatedinaccordancewith,theFeesRegulations.6. Inapplicationoftheaboveformulae,A,B,CandDwillbeincludedintheformulaeaspercentages(i.e.5%willbeincludedinthe

formulaas5andnotas0.05).AnegativeresultobtainedbysubtractingDfromBshallbetakenaszero.Theresultingfiguresshallberoundedtofourdecimalplaces.

7. IfrequestedbytheCompany,Lendershall,assoonaspracticableafterpublicationbytheFSA,supplytotheCompany,therateofcharge

payablebyLendertotheFSApursuanttotheFeesRegulationsinrespectoftherelevantfinancialyearoftheFSA(calculatedforthispurposebyLenderasbeingtheaverageoftheFeeTariffsapplicabletoLenderforthatfinancialyear)andexpressedinpoundsper£1,000,000oftheTariffBaseofLender.

8. AnydeterminationbytheLenderpursuanttothisScheduleinrelationtoaformula,theMandatoryCost,anAdditionalCostRateorany

amountpayabletoLendershall,intheabsenceofmanifesterror,beconclusiveandbindingonallpartieshereto.9. TheLendermayfromtimetotime,afterconsultationwiththeCompany,determineandnotifytoallpartiesanyamendmentswhichare

requiredtobemadetothisScheduleinordertocomplywithanychangeinlaw,regulationoranyrequirementsfromtimetotimeimposedbytheBankofEngland,theFSAortheEuropeanCentralBank(or,inanycase,anyotherauthoritywhichreplacesalloranyofitsfunctions)andanysuchdeterminationshall,intheabsenceofmanifesterror,beconclusiveandbindingonallpartieshereto.

Schedule 6.13Subsidiaries

Subsidiary Jurisdiction Shares

Outstanding % owned by

ParentWD-40ManufacturingCompany California 1,000 100HPDHoldingsCorp.

Delaware

1,411.1Common328.7346Preferred

100

HPDLaboratories,Inc. Delaware 1 100*HPDProperties,L.L.C. Delaware **** 100**HeartlandCorporation Kansas 100 100WD-40DirectLLC Delaware **** 100WD-40Company(Australia)Pty.Limited Australia 10,000 100WD-40Company(Canada)Ltd. Canada 100 100WD-40HoldingsLimited UK 100 100WD-40CompanyLimited UK 250,000 100***ShanghaiWuDiTradingCompanyLimited PeoplesRepublicofChina ***** 100* sharesheldbyHPDHoldingsCorp.** memberequityheldbyHPDLaboratories,Inc.*** sharesheldbyWD-40HoldingsLimited**** singlememberLLC–nosharesormemberunitsissued***** whollyforeignownedenterprise–nosharesissuedwithrespecttotheparentcompany’sregisteredcapitalinvestment

Schedule 6.19 1

Loan Party Information

BORROWER

WD-40COMPANY,aDelawarecorporation1061CudahyPlaceSanDiego,CA92110FEIN#95-1797918DEcorporation#3087122

GUARANTORS

HPDHOLDINGSCORP.,aDelawarecorporation1061CudahyPlaceSanDiego,CA92110FEIN#06-1509574DEcorporation#2868082

WD-40MANUFACTURINGCOMPANY,aCaliforniacorporation1061CudahyPlaceSanDiego,CA92110FEIN#33-0836428CAcorporation#C2041870

1 thechiefexecutiveoffice,exactlegalname,U.S.taxpayeridentificationnumberandorganizationalidentificationnumberofeachLoan

PartyasoftheClosingDate.

HPDLABORATORIES,INC.,aDelawarecorporation1061CudahyPlaceSanDiego,CA92110FEIN#06-1509319DEcorporation#2868085

HEARTLANDCORPORATION,aKansascorporation1061CudahyPlaceSanDiego,CA92110FEIN#48-0960791KScorporation#0826412

HPDPROPERTIES,L.L.C.,aDelawarelimitedliabilitycompany1061CudahyPlaceSanDiego,CA92110FEIN#disregardedentityunderHPDLaboratoriesFEINDEentity#3381568

Schedule 8.01 2

Liens

None.2 Liensexistingonthedatehereof,exceptasotherwisedescribedinSection8.01.

“Lien”meansanymortgage,pledge,hypothecation,assignment,depositarrangement,encumbrance,lien(statutoryorotherwise),charge,orpreference,priorityorothersecurityinterestorpreferentialarrangementinthenatureofasecurityinterestofanykindornaturewhatsoever(includinganyconditionalsaleorothertitleretentionagreement,anyeasement,rightofwayorotherencumbranceontitletorealproperty,andanyfinancingleasehavingsubstantiallythesameeconomiceffectasanyoftheforegoing).

Schedule 8.02 3

Investments

None.3 Investmentsexistingasofthedatehereof,exceptasotherwisedescribedinSection8.02.

“Investment”means,astoanyPerson,anydirectorindirectacquisitionorinvestmentbysuchPerson,whetherbymeansof(a)thepurchaseorotheracquisitionofEquityInterestsofanotherPerson,(b)aloan,advanceorcapitalcontributionto,Guaranteeorassumptionofdebtof,orpurchaseorotheracquisitionofanyotherdebtorequityparticipationorinterestin,anotherPerson,or(c)anAcquisition.Forpurposesofcovenantcompliance,theamountofanyInvestmentshallbetheamountactuallyinvested,withoutadjustmentforsubsequentincreasesordecreasesinthevalueofsuchInvestment.

Schedule 8.03 4

Indebtedness

None.4 Indebtednessexistingasofthedatehereof,exceptasotherwisedescribedinSection8.03.

“Indebtedness”means,astoanyPersonataparticulartime,withoutduplication,allofthefollowing,whetherornotincludedasindebtednessorliabilitiesinaccordancewithGAAP:

(a)allobligationsforborrowedmoneyandallobligationsofsuchPersonevidencedbybonds,debentures,notes,loanagreementsorothersimilarinstruments;

(b)themaximumamountavailabletobedrawnunderlettersofcredit(includingstandbyandcommercial),bankers’acceptances,bankguaranties,suretybondsandsimilarinstruments;

(c)theSwapTerminationValueofanySwapContract;

(d)allobligationstopaythedeferredpurchasepriceofpropertyorservices(otherthantradeaccountspayableintheordinarycourseofbusiness;

(e)indebtedness(excludingprepaidinterestthereon)securedbyaLienonpropertyownedorbeingpurchasedbysuchPerson(includingindebtednessarisingunderconditionalsalesorothertitleretentionagreements),whetherornotsuchindebtednessshallhavebeenassumedbysuchPersonorislimitedinrecourse;

(f)allAttributableIndebtedness;

(g)allGuaranteesofsuchPersoninrespectofanyoftheforegoing;and

(h)allIndebtednessofthetypesreferredtoinclauses(a)through(g)aboveofanypartnershiporjointventure(otherthanajointventurethatisitselfacorporationorlimitedliabilitycompany)inwhichsuchPersonisageneralpartnerorjointventurer,unlesssuchIndebtednessisexpresslymadenon-recoursetosuchPerson.

Schedule 11.02

Certain Addresses for Notices

ToBorroweroranyGuarantor:

WD-40COMPANY1061CudahyPlaceSanDiego,CA92110Attn:JayW.Rembolt,CFOFax#(619)275-5823

Withacopyto:

Gordon&ReesLLP101WBroadway,Suite2000SanDiego,CA92101Attn:RichardT.Clampitt,Esq.Fax#(619)595-5753

ToLender:

BankofAmerica,N.A.DocRetention-GFSCT2-515-BB-0370BattersonParkRoadFarmingtonCT06032

Withacopyto:

BankofAmerica,N.A.450BStreet,Suite1500SanDiego,CA92101Attn:EveaBecerra,Sr.CreditSupportAssociate

Exhibit2.02

FORMOFLOANNOTICE

Date:,To: BankofAmerica,N.A.,asLenderRe: CreditAgreementdatedasofJune17,2011(asamended,restated,extended,supplementedorotherwisemodifiedinwritingfromtimetotime,the“Credit

Agreement”)amongWD-40Company,aDelawarecorporation(the“Company”),certainForeignSubsidiariesoftheCompanyfromtimetotimepartythereto(eacha“DesignatedBorrower”and,togetherwiththeCompany,eacha“Borrower”andcollectivelythe“Borrowers”),theGuarantors,andBankofAmerica,N.A.,asLender.CapitalizedtermsusedbutnototherwisedefinedhereinhavethemeaningsprovidedintheCreditAgreement.

LadiesandGentlemen:

Theundersignedherebyrequests(selectone):

ABorrowingofLoans

AconversionorcontinuationofLoans

On,(aBusinessDay).

ApplicableCurrency:.1

Intheamountof$.2

Comprisedof(TypeofLoanrequested).3

ForLIBORRateLoans:withanInterestPeriodofmonth(s).

NameofBorrower:.4

WithrespecttoanyBorrowingrequestedherein,theBorrowerherebyrepresentsandwarrantsthat(i)thisrequestcomplieswiththerequirementsofSection2.02(a)oftheCreditAgreementand(ii)eachoftheconditionssetforthinSection5.02oftheCreditAgreementhavebeensatisfiedonandasofthedateofsuchBorrowing.1 U.S.DollarsorothercurrencyagreedtobytheCompanyandtheLender.2 Minimumamountsof(a)$250,000orawholemultipleof$50,000inexcessthereof,inthecaseofLIBORRateLoansand(b)$100,000andawholemultipleof

$50,000inexcessthereof,inthecaseofPrimeRateLoans.3 SelectLIBORRateorPrimeRate,asappropriate.4 SpecifyCompanyorotherBorrower,asappropriate.

[BORROWER]

By: Name:Title:

Exhibit2.13A

FORMOFDESIGNATEDBORROWERREQUEST

Date:,To: BankofAmerica,N.A.,asLender

LadiesandGentlemen:

ThisDesignatedBorrowerRequestismadeanddeliveredpursuanttoSection2.13ofthatcertainCreditAgreementdatedasofJune17,2011(asamended,modified,supplemented,increasedandextendedfromtimetotime,the“CreditAgreement”;termsdefinedthereinareusedhereinasthereindefined)amongWD-40Company,aDelawarecorporation(the“Company”),certainForeignSubsidiariesoftheCompanyfromtimetotimepartythereto(eacha“DesignatedBorrower”and,togetherwiththeCompany,eacha“Borrower”andcollectivelythe“Borrowers”),theGuarantorsandBankofAmerica,N.A.,asLender,andreferenceismadetheretoforfullparticularsofthemattersdescribedtherein.AllcapitalizedtermsusedinthisDesignatedBorrowerRequestandnototherwisedefinedhereinshallhavethemeaningsassignedtothemintheCreditAgreement.

Eachof(the“NewDesignatedBorrower”)andtheCompanyherebyconfirms,representsandwarrantstotheLenderthattheNewDesignatedBorrowerisawholly-ownedSubsidiaryoftheCompany.

ThedocumentsrequiredtobedeliveredtotheLenderunderSection2.13oftheCreditAgreementwillbefurnishedtotheLenderinaccordancewiththerequirementsoftheCreditAgreement.

ThetrueandcorrectuniqueidentificationnumberthathasbeenissuedtotheNewDesignatedBorrowerbyitsjurisdictionoforganizationandthenameofsuchjurisdictionaresetforthbelow:

Identification Number Jurisdiction of Organization

ThepartiesheretoherebyrequestthattheNewDesignatedBorrowerbeentitledtoreceiveLoansundertheCreditAgreement,andunderstand,acknowledgeandagreethatneithertheNewDesignatedBorrowernortheCompanyonitsbehalfshallhaveanyrighttorequestanyLoansforitsaccountunlessanduntilthedatefiveBusinessDaysaftertheeffectivedatedesignatedbytheLenderinaDesignatedBorrowerNoticedeliveredtotheCompanyandtheLenderpursuanttoSection2.13oftheCreditAgreement.

ThisDesignatedBorrowerRequestshallconstituteaLoanDocumentundertheCreditAgreement.

THISDESIGNATEDBORROWERREQUESTSHALLBEGOVERNEDBY,ANDCONSTRUEDINACCORDANCEWITH,THELAWOFTHESTATEOFCALIFORNIA.

[NEW DESIGNATED BORROWER]

By:

Name:

Title:

WD-40COMPANY,aDelawarecorporation

By:

Name:

Title:

INWITNESSWHEREOF,thepartiesheretohavecausedthisDesignatedBorrowerRequesttobedulyexecutedanddeliveredbytheirproperandduly

authorizedofficersasofthedayandyearfirstabovewritten.

Exhibit2.13B

FORMOFDESIGNATEDBORROWERJOINDERAGREEMENT

Date:,To: WD-40Companyand

[applicableNewDesignatedBorrower]

TheLenderpartytotheCreditAgreementreferredtobelow

LadiesandGentlemen:

ThisDesignatedBorrowerJoinderAgreementisexecutedanddeliveredpursuanttoSection2.13ofthatcertainCreditAgreement,datedasofJune17,2011(asamended,restated,extended,supplementedorotherwisemodifiedinwritingfromtimetotime,the“CreditAgreement;”thetermsdefinedthereinbeingusedhereinasthereindefined),amongWD-40Company,aDelawarecorporation(the“Company”),certainForeignSubsidiariesoftheCompanyfromtimetotimepartythereto(eacha“DesignatedBorrower”and,togetherwiththeCompany,eacha“Borrower”andcollectivelythe“Borrowers”),theGuarantors,andBankofAmerica,N.A.,asLenderandreferenceismadetheretoforfullparticularsofthemattersdescribedtherein.AllcapitalizedtermsusedinthisDesignatedBorrowerJoinderAgreementandnototherwisedefinedhereinshallhavethemeaningsassignedtothemintheCreditAgreement.

Thepartiesheretoherebyconfirmthatfromandafterthedatehereof,[][NameofDesignatedBorrower](the“NewDesignatedBorrower”)shallhaveobligations,dutiesandliabilitiestowardeachoftheotherpartiestotheCreditAgreementidenticaltothosewhichtheNewDesignatedBorrowerwouldhavehadiftheNewDesignatedBorrowerhadbeenanoriginalpartytotheCreditAgreementasaBorrower.TheNewDesignatedBorrowerconfirmsitsacceptanceof,andconsentsto,allrepresentationsandwarranties,covenants,andothertermsandprovisionsoftheCreditAgreement.

Effectiveasofthedatehereof[]shallbeaDesignatedBorrowerandbepermittedtoreceiveLoansforitsaccountonthetermsandconditionssetforthintheCreditAgreement[andherein]1andshallotherwisebeaBorrowerforallpurposesoftheCreditAgreement;providedthatnoLoanNoticemaybesubmittedbyoronbehalfofsuchDesignatedBorroweruntilthedatefiveBusinessDaysaftersucheffectivedate.

[TheadditionaltermsandconditionsapplicabletoextensionsofcredittotheNewDesignatedBorrowershallbe:]21 Includebracketedlanguageifadditionaltermsandconditionsapply.2 Onlyifadditionaltermsandconditionsapply.

BANK OF AMERICA, N.A.,asLender

By: Title:

[NEW DESIGNATED BORROWER]

By: Name: Title:

WD-40 Company,aDelawarecorporation

By: Name: Title:

ThisDesignatedBorrowerJoinderAgreementshallconstituteaLoanDocumentundertheCreditAgreement.

Exhibit7.02

FORMOFCOMPLIANCECERTIFICATE

FinancialStatementDate:,To: BankofAmerica,N.A.,asLenderRe: CreditAgreementdatedasofJune17,2011(asamended,restated,extended,supplementedorotherwisemodifiedinwritingfromtimetotime,the“Credit

Agreement”)amongWD-40Company,aDelawarecorporation(the“Company”),certainForeignSubsidiariesoftheCompanyfromtimetotimepartythereto(eacha“DesignatedBorrower”and,togetherwiththeCompany,eacha“Borrower”andcollectivelythe“Borrowers”),theGuarantorsandBankofAmerica,N.A.,asLender.CapitalizedtermsusedbutnototherwisedefinedhereinhavethemeaningsprovidedintheCreditAgreement.

LadiesandGentlemen:

TheundersignedResponsibleOfficerherebycertifiesasofthedatehereofthat[he/she]istheoftheCompany,andthat,in[his/her]capacityassuch,[he/she]isauthorizedtoexecuteanddeliverthisCertificatetotheLenderonthebehalfoftheCompany,andthat:

[Usefollowingparagraph1forfiscalyear-endfinancialstatements:]

[1.Theyear-endauditedfinancialstatementsrequiredbySection7.01(a)oftheCreditAgreementforthefiscalyearoftheCompanyendedasoftheabovedate,togetherwiththereportandopinionofanindependentcertifiedpublicaccountantrequiredbysuchsectionhavebeenfiledwiththeSECandareavailablethroughaccesstotheCompany’sinvestorrelationswebsiteatwww.wd40company.com.]

[Usefollowingparagraph1forfiscalquarter-endfinancialstatements:]

[1.TheunauditedfinancialstatementsrequiredbySection7.01(b)oftheCreditAgreementforthefiscalquarteroftheCompanyendedasoftheabovedatehavebeenfiledwiththeSECandareavailablethroughaccesstotheCompany’sinvestorrelationswebsiteatwww.wd40company.com.]

Suchfinancialstatementsfairlypresentthefinancialcondition,resultsofoperationsandcashflowsoftheCompanyanditsSubsidiariesinaccordancewithGAAPasofsuchdateandforsuchperiod,subjectonlytonormalyear-endauditadjustmentsandtheabsenceoffootnotes.

[selectone:]

[2.Tothebestknowledgeoftheundersignedduringsuchfiscalperiod,noDefaultorEventofDefaultexistsasofthedatehereof.]

[or:]

[ThefollowingisalistofeachexistingDefaultorEventofDefault,thenatureandextentthereof,andtheproposedactionsoftheLoanPartieswithrespectthereto:]

WD-40COMPANY

By: Name: Title:

3.TherepresentationsandwarrantiesoftheLoanPartiescontainedinArticleVIoftheCreditAgreement,orwhicharecontainedinanydocumentfurnishedatanytimeunderorinconnectionwiththeLoanDocuments,aretrueandcorrectonandasofthedatehereof,excepttotheextentthatsuchrepresentationsandwarrantiesspecificallyrefertoanearlierdate,inwhichcasetheyaretrueandcorrectasofsuchearlierdate.

4.ThefinancialcovenantanalysesandinformationsetforthonSchedule1attachedhereto(i)aretrueandaccurateonandasofthedateofthisCertificateand(ii)demonstratecompliancewithSection8.11oftheCreditAgreement.

5.AttachedheretoisalistofDomesticSubsidiariescreatedoracquiredsincethelateroftheClosingDateorthepreviousComplianceCertificateortherearenonewDomesticSubsidiariesatthistime(checkone).

6.SetforthbelowisasummaryofallmaterialchangesinGAAPandintheconsistentapplicationthereofoccurringduringthemostrecentfiscalquarterendingpriortothedatehereof,theeffectonthefinancialcovenantsresultingtherefrom,andareconciliationbetweencalculationofthefinancialcovenantsbeforeandaftergivingeffecttosuchchanges:

[7.Tothebestknowledgeoftheundersignedduringsuchfiscalperiod,nochangetothecorporatestructureoftheCompany,includingtheadditionofForeignSubsidiaries,hasoccurred.]

[or:]

[TherevisedcorporatestructureoftheCompanyissetforthonSchedule2attachedhereto.]

INWITNESSWHEREOF,theundersignedhasexecutedthisCertificateasof,.

FortheQuarter/Yearended(“StatementDate”)

SCHEDULE 1totheComplianceCertificate

($in000’s)

PRIORTOTHENOTEPURCHASEAGREEMENTTERMINATIONDATE

I. Section 8.11 (a) – Debt to EBITDA Ratio.

A. EBITDAforfourconsecutivefiscalquartersendingonabovedate(“SubjectPeriod”):

1. NetIncomeforSubjectPeriod: $

2. InterestExpenseforSubjectPeriod: $

3. ProvisionforincometaxesforSubjectPeriod: $

4. DepreciationexpensesforSubjectPeriod: $

5. AmortizationexpensesforSubjectPeriod: $

6. EBITDA(LinesI.A.1+I.A.2+I.A.3+I.A.4+I.A.5): $

B. DebtatStatementDate: $

D. DebttoEBITDARatio((LineI.B)÷(LineI.A.6)): to1.00

Maximumallowed:2.25to1.00

II. Section 8.11 (a) – Consolidated Net Worth.

A. ConsolidatedNetWorthatStatementDate: $

B.

Onacumulativebasis,25%ofNetIncome(ifpositive)foreachfiscalquarter,commencingwiththefiscalquarterendingSeptember1,2001: $

C. 100%ofthecashproceedsreceivedasconsiderationforthesaleofEquityInterestssubsequenttoOctober18,2001: $

D. $45,000,000+LineII.B.+LineII.C. $

LineII.AmustbegreaterthanLineII.D

III. Section 8.11 (a) – Fixed Charge Coverage Ratio.

A. EBITDARforSubjectPeriod:

1. EBITDAforSubjectPeriod(LineI.A.6above): $

2. RentexpenseforSubjectPeriod: $

3. EBITDAR(LinesIII.A.1+III.A.2) $

B. Other

1.

CapitalexpendituresforSubjectPeriod: $

2.

ProvisionforincometaxespaidincashforSubjectPeriod: $

C. NumeratorofFixedChargeCoverageRatio(LinesIII.A.3–III.B.1–III.B.2) $

D. FixedChargesforSubjectPeriod:

1. InterestExpenseforSubjectPeriod: $

2. RentexpenseforSubjectPeriod: $

3. PaymentsscheduledtobemadeinrespectoftheprincipalamountofDebtforSubjectPeriod: $

4. FixedCharges(LinesIII.D.1+III.D.2+III.D.3) $

F. FixedChargeCoverageRatio(LineIII.C÷III.D.4) to1.00

Minimumrequired:1.20to1.00

AFTERTHENOTEPURCHASEAGREEMENTTERMINATIONDATE

I. Section 8.11 (b) – Consolidated EBITDA.

A. EBITDAforfourconsecutivefiscalquartersendingonabovedate(“SubjectPeriod”):

1. ConsolidatedNetIncomeforSubjectPeriod: $

2. ConsolidatedInterestChargesforSubjectPeriod: $

3. ProvisionforincometaxesforSubjectPeriod: $

4. DepreciationexpensesforSubjectPeriod: $

5. AmortizationexpensesforSubjectPeriod: $

6. ImpairmentchargesrelatedtointangibleassetsforSubjectPeriod: $

7. EBITDA(LinesI.A.1+2+3+4+5+6): $

Minimumrequired:$40,000,000

Exhibit7.13

FORMOFJOINDERAGREEMENT

THISJOINDERAGREEMENT(the“Agreement”),datedasofisbyandbetween,a(the“DomesticSubsidiary”),andBankofAmerica,N.A.,initscapacityasLenderunderthatcertainCreditAgreementdatedasofJune17,2011(asamended,modified,supplemented,increasedandextendedfromtimetotime,the“CreditAgreement”;termsdefinedthereinareusedhereinasthereindefined)amongWD-40Company,aDelawarecorporation(the“Company”),certainForeignSubsidiariesoftheCompanyfromtimetotimepartythereto(eacha“DesignatedBorrower”and,togetherwiththeCompany,eacha“Borrower”andcollectivelythe“Borrowers”),theGuarantorsandtheLender.

TheLoanPartiesarerequiredbySection7.13oftheCreditAgreementtocausetheDomesticSubsidiarytobecomea“Guarantor”thereunder.Accordingly,theDomesticSubsidiaryherebyagreesasfollowswiththeLender:

1.TheDomesticSubsidiaryherebyacknowledges,agreesandconfirmsthat,byitsexecutionofthisAgreement,theDomesticSubsidiarywillbedeemedtobeapartytotheCreditAgreementanda“Guarantor”forallpurposesoftheCreditAgreement,andshallhavealloftheobligationsofaGuarantorthereunderasifithadexecutedtheCreditAgreement.TheDomesticSubsidiaryherebyratifies,asofthedatehereof,andagreestobeboundby,alloftheterms,provisionsandconditionsapplicabletotheGuarantorscontainedintheCreditAgreement.Withoutlimitingthegeneralityoftheforegoingtermsofthisparagraph1,theDomesticSubsidiaryherebyjointlyandseverallytogetherwiththeotherGuarantors,guaranteestotheLender,asprovidedinArticleIVoftheCreditAgreement,thepromptpaymentandperformanceoftheObligationsinfullwhendue(whetheratstatedmaturity,asamandatoryprepayment,byaccelerationorotherwise)strictlyinaccordancewiththetermsthereof.

2.TheaddressoftheDomesticSubsidiaryforpurposesofallnoticesandothercommunicationsis:

[DomesticSubsidiary] Attention: Telephone: Facsimile:

3.TheDomesticSubsidiaryherebywaivesacceptancebytheLenderoftheguarantybytheDomesticSubsidiaryunderArticleIVoftheCreditAgreementupontheexecutionofthisAgreementbytheDomesticSubsidiary.

4.ThisAgreementmaybeexecutedinmultiplecounterparts,eachofwhichshallconstituteanoriginalbutallofwhichwhentakentogethershallconstituteonecontract.

5.THISAGREEMENTSHALLBEGOVERNEDBYANDCONSTRUEDANDINTERPRETEDINACCORDANCEWITHTHELAWSOFTHESTATEOFCALIFORNIA.

[DOMESTICSUBSIDIARY]

By: Name: Title:

INWITNESSWHEREOF,theDomesticSubsidiaryhascausedthisJoinderAgreementtobedulyexecutedbyitsauthorizedofficer,andtheLenderhascaused

thesametobeacceptedbyitsauthorizedofficer,asofthedayandyearfirstabovewritten.

Acknowledgedandaccepted:

BANKOFAMERICA,N.A.,asLender

By: Name: Title:

Exhibit8.11

NOTEPURCHASEAGREEMENTFINANCIALCOVENANTS

PriortotheNotePurchaseAgreementTerminationDate,theCompanywillnotpermit:

(a)DebttoEBITDARatio.TheratioofDebttoEBITDAatanytimetobegreaterthan2.25:1.00.

(b)ConsolidatedNetWorth.ConsolidatedNetWorthatanytimetobelessthanthesumof(i)$45,000,000plus(ii)onacumulativebasis,25%ofNetIncome(onlyifpositive)foreachfiscalquarteroftheCompany,commencingwiththefiscalquarterbeginningSeptember1,2001plus(iii)100%ofthecashproceedsreceivedbytheCompany(or100%ofthefairmarketvalueofanyotherpropertyreceivedbytheCompany)asconsiderationfortheCompany’sissueandsaleofanyEquityInterests(excepttoemployeesorformeremployeesoftheCompanypursuanttoanemployeestockoptionplanmaintainedbytheCompany)subsequenttothedateoftheNotePurchaseAgreement;and

(c)FixedChargeCoverageRatio.TheFixedChargeCoverageRatiotobelessthan1.20:1.00onthelastdayofanyfiscalquarter.

AsusedinthisExhibit8.11,thefollowingtermshavethefollowingmeanings:

“EBITDAR”means,forthefourfiscalquarterperiodimmediatelyprecedingthetimeofdetermination,(i)EBITDAplus(ii)totheextentdeductedinthecalculationofNetIncome,consolidatedrentexpenseoftheCompanyandSubsidiaries.

“FixedChargeCoverageRatio”meanstheratioof:(i)EBITDARminuscapitalexpendituresandincometaxespaidincash,ineachcasefortheCompanyanditsSubsidiariesforthefourfiscalquarterperiodimmediatelyendingonanydateofdetermination;to(ii)FixedCharges.

“FixedCharges”means,(i)forthefourfiscalquarterperiodendingonanydateofdetermination,InterestExpenseplusconsolidatedrentexpenseoftheCompanyandSubsidiariesplus(ii)forthefourfiscalquarterperiodimmediatelysucceedinganydateofdetermination,paymentsscheduledtobemadeinrespectoftheprincipalamountofDebt(asestimatedingoodfaithbytheCompanybasedonreasonableassumptionsdisclosedinwritingintheapplicableComplianceCertificate).

“ConsolidatedNetWorth”means,asofanydateofdetermination,consolidatedshareholders’equityoftheCompanyanditsSubsidiariesasofthatdate.

“Debt”means,withrespecttoCompanyanditsSubsidiaries,onaconsolidatedbasis,withoutduplication(i)indebtednessforborrowedmoney(ii)obligationsevidencedbybonds,debentures,notes,maturedreimbursableobligationsunderlettersofcreditorothersimilarinstruments,(iii)obligationstopaythedeferredpurchasepriceofpropertyorservicesotherthantradepayablesincurredintheordinarycourseofbusiness,(iv)obligationsaslesseeunderCapitalLeases,(v)indebtednessorobligationsofothersofthekindsreferredtoinclauses(i)through(iv)above,whicharethesubjectofaGuaranteeprovidedbysuchPerson(s)and(vii)liabilitiesinrespectofunfundedvestedbenefitsunderPlanscoveredbyTitleIVofERISA.

“EBITDA”means,forthefourfiscalquarterperiodmostrecentlyendedatthetimeofdetermination,(i)NetIncomeplus(ii)totheextentdeductedinthe

calculationofNetIncome,InterestExpense,consolidateddepreciationexpenseoftheCompanyanditsSubsidiaries,consolidatedamortizationexpenseoftheCompanyanditsSubsidiariesandconsolidatedincometaxexpenseoftheCompanyanditsSubsidiaries.

“InterestExpense”means,foranyperiod,allinterestexpenseontheDebtoftheCompanyanditsSubsidiariesonaconsolidatedbasis,includingallcommissions,discountsorrelatedamortizationandotherfeesandchargeswithrespecttolettersofcreditandbankers’acceptancefinancingandthenetcostsassociatedwithinterestrateswap,capandsimilararrangements,amortizationofdebtexpenseandoriginalissuediscountandtheinterestportionofanydeferredpaymentobligation(includingleasesofalltypes),calculatedinaccordancewiththeeffectiveinterestmethod.

“NetIncome”means,foranyperiod,thenetincome(orloss)oftheCompanyanditsSubsidiariesasdeterminedinaccordancewithGAAP,providedthatthereshallbeexcluded:

(a)theincome(orloss)ofanyPersonaccruedpriortothedateitbecomesaSubsidiaryorismergedintoorconsolidatedwiththeCompanyoraSubsidiary,andtheincome(orloss)ofanyPerson,substantiallyalloftheassetsofwhichhavebeenacquiredinanymanner,realizedbysuchotherPersonpriortothedateofacquisition;

(b)theincome(orloss)ofanyPerson(otherthanaSubsidiary)inwhichtheCompanyoranySubsidiaryhasanownershipinterest,excepttotheextentthatanysuchincomehasbeenactuallyreceivedbytheCompanyorsuchSubsidiaryintheformofcashdividendsorsimilarcashdistributions;

(c)theundistributedearningsofanySubsidiarytotheextentthatthedeclarationorpaymentofdividendsorsimilardistributionsbysuchSubsidiaryisnotatthetimepermittedbythetermsofitscharteroranyagreement,instrument,judgment,decree,order,statute,ruleorgovernmentalregulationapplicabletosuchSubsidiary;

(d)anyrestorationtoincomeofanycontingencyreserve,excepttotheextentthatprovisionforsuchreservewasmadeoutofincomeaccruedduringsuchperiod;

(e)anyaggregatenetgain(butnotanyaggregatenetloss)duringsuchperiodarisingfromthesale,conversion,exchangeorotherdispositionofcapitalassets(suchtermtoinclude(i)allnon-currentassetsand,withoutduplication,(ii)thefollowing,whetherornotcurrent:allfixedassets,whethertangibleorintangible,allinventorysoldinconjunctionwiththedispositionoffixedassets,andallsecurities);

(f)anygainsresultingfromanywrite-upofanyassets(butnotanylossresultingfromanywrite-downofanyassets,exceptasprovidedinclause(g),below);

(g)anylossresultingfromanywrite-downofanygoodwillorotherintangibleassetrequiredbyFASBStatementNo.142;

(h)anynetgainfromthecollectionoftheproceedsoflifeinsurancepolicies;

(i)anygainarisingfromtheacquisitionofanysecurity,ortheextinguishment,underGAAP,ofanyDebt,oftheCompanyoranySubsidiary;

(j)anynetincomeorgain(butnotanynetloss)duringsuchperiodfrom(i)anyrestatementofthefinancialstatementsoftheCompanyandits

consolidatedSubsidiariespursuanttoachangeinaccountingprinciplesinaccordancewithGAAP,(ii)anypriorperiodadjustmentsresultingfromanychangeinaccountingprinciplesinaccordancewithGAAP,(iii)anyextraordinaryitems,or(iv)anydiscontinuedoperationsorthedispositionthereof;

(k)anydeferredcreditrepresentingtheexcessofequityinanySubsidiaryatthedateofacquisitionoverthecostoftheinvestmentinsuchSubsidiary;and

(l)anyportionofsuchnetincomethatcannotbefreelyconvertedintoDollars.

Exhibit 21

SUBSIDIARIES OF THE REGISTRANT

TheRegistranthasthefollowingwholly-ownedsubsidiarieswhich,exceptasindicated,dobusinessundertheirrespectivelegalnames:

Name Place of Incorporation

WD-40ManufacturingCompany California,USA

WD-40Company(Canada)Ltd. Ontario,Canada

WD-40HoldingsLimited London,England

WD-40CompanyLimited London,England

WD-40Company(Australia)Pty.Limited NewSouthWales,Australia

HPDLaboratoriesInc. Delaware,USA

HeartlandCorporation Kansas,USA

WuDi(Shanghai)IndustrialCo.,Ltd. Shanghai,China

WD-40Company(Malaysia)Sdn.Bhd. KualaLumpur,Malaysia

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

WeherebyconsenttotheincorporationbyreferenceintheRegistrationStatementsonFormS‑8(No.333-151149,333-117395,333-64256,333-41247,333-90972,and333-43174)andFormS-3(No.333-98041and333-63890)ofWD-40Companyofourreport datedOctober23,2017relatingtothefinancialstatementsandtheeffectivenessofinternalcontroloverfinancialreporting,whichappearsinthisForm10‑K.

/s/PricewaterhouseCoopersLLP

SanDiego,CaliforniaOctober23,2017

/s/GARRYO.RIDGE

GarryO.RidgePresidentandChiefExecutiveOfficer

Exhibit 31(a)

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I,GarryO.Ridge,certifythat:

1. IhavereviewedthisAnnualReportonForm10-KofWD-40Company;

2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementsmade,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancialcondition,resultsofoperations,andcashflowsoftheRegistrantasof,andfor,theperiodspresentedinthisreport;

4. TheRegistrant’sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheRegistrantandhave:

a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheRegistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

c) EvaluatedtheeffectivenessoftheRegistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) DisclosedinthisreportanychangeintheRegistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheRegistrant’smostrecentfiscalquarter(theRegistrant’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theRegistrant’sinternalcontroloverfinancialreporting;and

5. TheRegistrant’sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheRegistrant’sauditorsandtheauditcommitteeoftheRegistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

a) AllsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheRegistrant’sabilitytorecord,process,summarize,andreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheRegistrant’sinternalcontroloverfinancialreporting.

Date:October23,2017

/s/JAYW.REMBOLT

JayW.RemboltVicePresident,Finance,TreasurerandChiefFinancialOfficer

Exhibit 31(b )

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I,JayW.Rembolt,certifythat:

1. IhavereviewedthisAnnualReportonForm10-KofWD-40Company;2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatements

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

condition,resultsofoperations,andcashflowsoftheRegistrantasof,andfor,theperiodspresentedinthisreport;4. TheRegistrant’sothercertifyingofficerandIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchange

ActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheRegistrantandhave:a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethat

materialinformationrelatingtotheRegistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

c) EvaluatedtheeffectivenessoftheRegistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) DisclosedinthisreportanychangeintheRegistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheRegistrant’smostrecentfiscalquarter(theRegistrant’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theRegistrant’sinternalcontroloverfinancialreporting;and

5. TheRegistrant’sothercertifyingofficerandIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheRegistrant’sauditorsandtheauditcommitteeoftheRegistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelyto

adverselyaffecttheRegistrant’sabilitytorecord,process,summarize,andreportfinancialinformation;andb) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheRegistrant’sinternalcontrolover

financialreporting.

Date:October23,2017

/s/GARRYO.RIDGEGarryO.RidgePresidentandChiefExecutiveOfficer

Exhibit 32(a)

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I,GarryO.Ridge,ChiefExecutiveOfficerofWD-40Company(the“Company”),havereviewedtheAnnualReportonForm10-KoftheCompanyforthefiscalyearendedAugust31,2017(the“Report”).ForpurposesofSection1350ofTitle18,UnitedStatesCode,Icertifythattothebestofmyknowledge:

(1) theReportfullycomplieswiththerequirementsofsection13(a)or15(d)oftheSecuritiesExchangeActof1934,asamended;and

(2) theinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheCompany.

Date:October23,2017 

/s/JAYW.REMBOLTJayW.RemboltVicePresident,Finance,TreasurerandChiefFinancialOfficer

Exhibit 32(b )

CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I,JayW.Rembolt,ChiefFinancialOfficerofWD-40Company(the“Company”),havereviewedtheAnnualReportonForm10-KoftheCompanyforthefiscalyearendedAugust31,2017(the“Report”).ForpurposesofSection1350ofTitle18,UnitedStatesCode,Icertifythattothebestofmyknowledge:

(1) theReportfullycomplieswiththerequirementsofsection13(a)or15(d)oftheSecuritiesExchangeActof1934,asamended;and

(2) theinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheCompany.

Date:October23,2017