Document:

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                                                                   Exhibit 10.26

                    TAX SHARING AND INDEMNIFICATION AGREEMENT

         THIS TAX SHARING AND INDEMNIFICATION AGREEMENT (the "Agreement"), dated
as of November 29, 1999, is made by and between Allegheny Teledyne Incorporated,
a Delaware corporation ("ATI") on behalf of itself and each member of the ATI
Consolidated Group, and Water Pik Technologies, Inc., a Delaware corporation
("SPINCO"), on behalf of itself and each member of the SPINCO Group and their
respective successors.

                                   Witnesseth:

        WHEREAS, ATI has determined to effect the Distribution pursuant to the
Distribution Agreement;

        WHEREAS, the IRS has issued the IRS Ruling which states the tax
treatment of the Distribution and the Other Transactions;

        WHEREAS, the parties are entering into this Agreement to ensure the
continuing effectiveness of the IRS Ruling, to provide for certain indemnities,
and to provide for various administrative matters relating to Taxes, including:

        1. the preparation and filing of Tax Returns along with the payment of
Taxes shown due and payable thereon;

        2. the retention and maintenance of relevant records necessary to
prepare and file appropriate Tax Returns, as well as providing for appropriate
access to those records by the parties to this Agreement;

        3. the conduct of audits, examinations, and proceedings by appropriate
government entities which could result in a redetermination of Taxes; and

         4. the cooperation of all parties with one another in order to fulfill
their duties and responsibilities under this Agreement and under the Code and
other applicable law; and

        WHEREAS, it is the intent of the parties that SPINCO or the appropriate
member of the SPINCO Group shall economically bear the burden of all Taxes
otherwise imposed upon or attributable to the Operations of members of the
SPINCO Group occurring after the Effective Date, and that SPINCO will be
responsible for and reimburse ATI for any Incremental Tax Assessment.

        NOW, THEREFORE, in consideration of the mutual promises, covenants, and
conditions contained in this Agreement, and intending to be legally bound
hereby, the parties hereto agree as follows:

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                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.1 DEFINITIONS. For the purposes of this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural of the terms involved):

         ADJUSTMENT means any final change in the Tax Liability of a taxpayer.

         AFFILIATE means, when used with respect to a specified Person, another
Person that directly, or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with such Person.

         AFFILIATED PERSON has the meaning ascribed to such term in the
Investment Company Act of 1940, as amended, and the rules and regulations
promulgated thereunder.

         AGREEMENT means this Tax Sharing and Indemnification Agreement.

         ASSOCIATES has the meaning ascribed to such term in the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

         ATI CONSOLIDATED RETURN means any Tax Return that includes any member
of the ATI Consolidated Group.

         ATI CONSOLIDATED GROUP means, as of any relevant date, ATI and its
Subsidiaries, determined as of such date.

         BENEFICIAL OWNERSHIP has the meaning ascribed to such term in the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

         BUSINESS TAXES means any Tax (except for federal income, state income
or franchise, and local and foreign gross or net income) including interest,
penalties, and other assessments thereon that is attributable to Operations of
SPINCO or members of the SPINCO Group for a tax period ending prior to or
including the Effective Date.

         BUSINESS TAX RETURNS means all reports, estimates, declarations of
estimated tax, information statements and returns relating to or required to be
filed in connection with any Business Taxes, including information returns or
reports with respect to backup withholding and other payments to third parties.

         CODE means the Internal Revenue Code of 1986, as amended, and the
Treasury regulations promulgated thereunder.

         COMBINED RETURN shall mean all state income tax returns which ATI files
on a combined or unitary basis with respect to some or all of its Subsidiaries.

         DISQUALIFIED SPINCO STOCK is defined at Section 5.2.

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         DISTRIBUTION means the distribution of SPINCO common stock to the
stockholders of ATI pursuant to the Distribution Agreement.

         DISTRIBUTION AGREEMENT means the Separation and Distribution Agreement
among ATI, SPINCO and certain other parties dated as of November 29, 1999.

         EFFECTIVE DATE means the date on which the Distribution occurs.

         EFFECTIVE TIME means 5 p.m., Eastern Standard Time or Eastern Daylight
Time (whichever shall then be in effect), on the Effective Date.

         FINAL DETERMINATION means the final resolution of any Tax matter. A
Final Determination shall result from the first to occur of:

                  1. the expiration of 30 days after the IRS's acceptance of a
         Waiver of Restrictions on Assessment and Collection of Deficiency in
         Tax and Acceptance of Overassessment on Form 870 or 870-AD (or any
         successor comparable form) (the "Waiver"), except as to reserved
         matters specified therein, or the expiration of 30 days after
         acceptance by any other taxing authority of a comparable agreement or
         form under the laws of any other jurisdiction, including state, local,
         and foreign jurisdictions; unless, within such period, the taxpayer
         gives notice to the other party to this Agreement of the taxpayer's
         intention to attempt to recover all or part of any amount paid pursuant
         to the Waiver by the filing of a timely claim for refund;

                  2. a decision, judgment, decree, or other order by a court of
         competent jurisdiction that is not subject to further judicial review
         (by appeal or otherwise) and has become final;

                  3. the execution of a closing agreement under Code Section
         7121, or the acceptance by the IRS of an offer in compromise under Code
         Section 7122, or comparable agreements under the laws of any other
         jurisdiction, including state, local, and foreign jurisdictions, except
         as to reserved matters specified therein;

                  4. the expiration of the time for filing a claim for refund or
         for instituting suit in respect of a claim for refund that was
         disallowed in whole or in part by the IRS or any other taxing
         authority;

                  5. the expiration of the applicable statute of limitations; or

                  6. an agreement by the parties hereto that a Final
         Determination has been made.

         GROSS ASSET VALUE means, when used with respect to a specified Person,
the fair market value of such Person's assets unencumbered by any liabilities.

         GROUP has the meaning ascribed to such term in the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder.

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         INCREMENTAL TAX ASSESSMENT means any increase in Business Taxes imposed
upon ATI after the date hereof.

         INDEMNIFIED LIABILITY is defined at Section 7.1.

         INDEMNIFIED PARTY is defined at Section 6.1.

         INDEMNIFYING PARTIES is defined at Section 6.1.

         INTERNAL DISTRIBUTIONS means the distributions of SPINCO common stock
by Teledyne Industries, Inc. to TDY Holdings, LLC, a Delaware limited liability
company wholly owned by ATI, and by TDY Holdings, LLC to ATI.

         IRS means the U.S. Internal Revenue Service.

         IRS INTEREST RATE means the rate of interest imposed from time to time
on underpayments of income tax pursuant to Code Section 6621(a)(2).

         IRS RULING means the private letter ruling (together with any
supplements) issued by the IRS in respect of the Ruling Request.

         OPERATIONS means any business activity of any SPINCO business unit, as
described in the Ruling Request.

         OTHER TRANSACTIONS means the Internal Distributions and all other
transactions related to the Distribution and described in the Ruling Request,
including all modifications to such transactions reflected in supplements to the
Ruling Request.

         PERSON means any natural person, corporation, limited liability
company, business trust, joint venture, association, company, partnership or
government, or any agency or political subdivision thereof.

         POST-DISTRIBUTION PERIOD means any taxable period that begins after the
Effective Date.

         PRE-DISTRIBUTION PERIOD means any taxable period that ends on or before
the Effective Date.

         PROCEEDING is defined at Section 8.2(a).

         PUBLIC OFFERING means the first public offering of SPINCO common stock
following the Distribution. The gross proceeds of such Public Offering shall be
approximately $50 million or such other amount as ATI, in its sole discretion,
may approve.

         RESTRICTED PERIOD means the two year period following the Effective
Date.

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         RESTRICTED REDEMPTION PERIOD means the two year period beginning on the
Effective Date and ending two years following the Public Offering.

         RULING REQUEST means the request for ruling (including all exhibits),
under Section 355, and other provisions of the Code, as originally filed on
behalf of ATI on April 6, 1999, as amended and supplemented, in respect of the
Distribution.

         SPINCO GROUP means: (i) as of any relevant date after the Effective
Date, SPINCO and its Subsidiaries determined as of such date; and (ii) as of any
relevant date on or before the Effective Date, SPINCO and those businesses which
become part of SPINCO or its Subsidiaries as contemplated by the Distribution
Agreement, whether or not such Persons or businesses were Subsidiaries of SPINCO
before the Distribution.

         STRADDLE PERIOD means any taxable period with respect to a Tax Return,
that begins on or before the Effective Date and ends after the Effective Date.

         SUBSIDIARY means with respect to ATI or SPINCO, any Person of which ATI
or SPINCO, respectively, controls or owns, directly or indirectly, more than 50%
of the stock or other equity interest entitled to vote on the election of
members to the board of directors or similar governing body.

         TAXES means all federal, state, local and foreign gross or net income,
gross receipts, withholding, payroll, franchise, transfer, sales, use, value
added, estimated or other taxes of any kind whatsoever or similar charges and
assessments, such as customs, duties and the like, or other amounts paid in
respect thereof, including all interest, penalties and additions imposed with
respect to such amounts.

         TAX LIABILITY means the net amount of Taxes due and paid or payable for
any taxable period, determined after applying all tax credits and all applicable
carrybacks or carryovers for net operating losses, net capital losses, unused
general business tax credits, or any other Tax items arising from a prior or
subsequent taxable period, and all other relevant adjustments.

         TAX RETURNS means all reports, estimates, declarations of estimated
tax, information statements and returns relating to or required to be filed in
connection with any Taxes, other than Business Taxes, including information
returns or reports with respect to backup withholding and other payments to
third parties.

                                   ARTICLE II
                   FILING OF TAX RETURNS AND PAYMENT OF TAXES

         SECTION 2.1. TAX RETURNS REQUIRED TO BE FILED PRIOR TO DISTRIBUTION
DATE. ATI shall file or cause to be filed all Tax Returns of ATI and any member
of the ATI Consolidated Group required to be filed (after giving effect to any
valid extension of time in which to make such filings) prior to the Effective
Date and shall pay or cause to be paid any Tax Liability due with respect to
such Tax Returns.

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         SECTION 2.2. TAX RETURNS FOR PRE-DISTRIBUTION PERIODS.

         (a) SPINCO shall prepare or cause to be prepared, consistent with past
practice, Business Tax Returns for the Pre-Distribution Period and shall pay or
cause to be paid any Tax Liability due with respect to such Business Tax
Returns. ATI will promptly notify SPINCO of any audit, assessment, notice, levy,
or questionnaire with respect to Business Taxes. SPINCO shall control all
matters relating to such Business Taxes and shall pay or cause to be paid and/or
indemnify ATI or cause ATI to be indemnified, whatever the case may be, for and
defend and hold ATI harmless against any Incremental Tax Assessment set forth in
a Final Determination of Business Taxes. Payment to ATI with respect to such
Incremental Tax Assessment shall be made in the same manner as if SPINCO were an
Indemnifying Party as set forth in Section 8.3.

         (b) Except as provided in Section 2.2(a), ATI shall prepare or cause to
be prepared, for Pre-Distribution Periods, all (1) Combined Returns and (2) Tax
Returns required to be filed on a separate return basis by any member of the ATI
Consolidated Group, in each case, which Tax Returns are not required to be
(after giving effect to any valid extensions), and are not, filed on or prior to
the Effective Date and shall pay or cause to be paid any Tax Liability due with
respect to such Tax Returns. With respect to Tax Returns described in this
Section 2.2(b), ATI shall prepare the returns in a manner, absent any
intervening law change, consistent with ATI's preparation of Tax Returns covered
by Section 2.1. With respect to any Tax Returns described in part (2) of the
first sentence of this Section 2.2(b) relating to a member of the SPINCO Group,
ATI shall file such Tax Returns with the appropriate tax authority, pursuant to
a power of attorney executed and delivered to ATI by SPINCO pursuant to Section
10.15 hereof and shall pay or cause to be paid any Tax Liability due with
respect to such Tax Returns.

         (c) Notwithstanding Section 2.2(a), ATI will be responsible for paying
Business Taxes that arise directly from the Distribution and Other Transactions.
For this Section 2.2(c) to apply, ATI must consent in writing, which consent
shall not be unreasonably withheld, that the amount of such Business Taxes has
been correctly determined. In addition, ATI shall have the right to control any
audit, litigation or proceeding regarding such Business Taxes.

         SECTION 2.3. TAX RETURNS FOR POST-DISTRIBUTION PERIODS. SPINCO shall
(a) prepare and file or cause to be prepared and filed all Tax Returns required
to be filed by any member of the SPINCO Group for any Post-Distribution Period
and (b) pay or cause to be paid any Tax Liability due with respect to such Tax
Returns.

         SECTION 2.4. TAX RETURNS FOR STRADDLE PERIOD. ATI shall prepare all Tax
Returns of or which include any member of the SPINCO Group for a Straddle
Period. ATI shall pay or cause to be paid and shall defend, indemnify and hold
SPINCO and members of the SPINCO Group harmless against the Tax Liabilities
attributable to the affected member or members of the SPINCO Group for the
portion of the Straddle Period ending on the Effective Date and SPINCO shall pay
or cause to be paid and shall defend, indemnify, and hold ATI and members of the
ATI Consolidated Group harmless against the Tax Liabilities attributable to the
affected member or members of the SPINCO Group for the remainder of the Straddle
Period beginning with the day after the Effective Date. ATI's determination of
Tax Liabilities up to and

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following the Effective Date shall be based on ATI's interim closing of the
books, determined as of the Effective Time, of the affected member or members of
the SPINCO Group.

         SECTION 2.5. TAX-BASIS BALANCE SHEETS. In the case of any business that
was conducted prior to the Effective Date as a division of ATI, its Subsidiaries
or a member of the ATI Consolidated Group and which will be conducted after the
Effective Date by a member of the SPINCO Group, ATI shall prepare and furnish to
SPINCO, within 120 days after the Effective Date, a tax-basis balance sheet,
prepared consistent with past practices, relating to such business as of the
Effective Date.

                                   ARTICLE III
         COOPERATION AND EXCHANGE OF INFORMATION; AUDITS AND ADJUSTMENTS

         SECTION 3.1. TAX RETURN INFORMATION.

         (a) SPINCO shall, and shall cause each appropriate member of the SPINCO
Group to, provide ATI with all information and other assistance reasonably
requested by ATI to enable the members of the ATI Consolidated Group to prepare
and file ATI Consolidated Returns required to be filed by the ATI Consolidated
Group pursuant to this Agreement.

         (b) ATI shall, and shall cause each appropriate member of the ATI
Consolidated Group to, provide SPINCO with all information and other assistance
reasonably requested by SPINCO to enable the members of the SPINCO Group to
prepare and file SPINCO Returns required to be filed by the SPINCO Group
pursuant to this Agreement.

         (c) Within 60 days of the Effective Date, SPINCO shall provide and
cause each appropriate member of the SPINCO Group to provide to ATI customary
tax packages prepared consistent with past practice for any Pre-Distribution
Period or Straddle Period.

         SECTION 3.2. AUDITS AND ADJUSTMENTS.

         (a) Except as provided for in Section 3.3, ATI shall have full control
over and absolute discretion with respect to all matters relating to any Tax
Return covered by Section 2.1, Section 2.2 or Section 2.4.

         (b) SPINCO shall have full control over and absolute discretion with
respect to all Tax Returns covered by Section 2.3.

         (c) SPINCO agrees to cooperate with ATI in the negotiation, settlement,
and litigation of or other proceeding regarding any liability for or refund of
Taxes of any member paid or payable by the ATI Consolidated Group.

         (d) ATI agrees to cooperate with SPINCO in the negotiation, settlement,
and litigation of or other proceeding regarding any liability for Taxes paid or
payable by any member of the SPINCO Group.

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         (e) ATI will promptly notify SPINCO in writing of any Adjustment
involving a change in the tax basis of any asset of SPINCO, specifying the
nature of the change so that the SPINCO Group will be able to reflect the
revised basis in its tax books and records for periods beginning on or after the
Effective Date.

         (f) In the event of a conflict between the operation of this Section
3.2 and Articles VI, VII, or VIII, those Articles will take precedence over this
Section 3.2.

         SECTION 3.3. CARRYBACKS. SPINCO shall make an election under Section
172(b)(3) of the Code to relinquish the entire carryback period with respect to
any net operating loss attributable to SPINCO or any of its Subsidiaries in any
taxable period beginning after or including the Effective Date that could be
carried back to a taxable year of SPINCO or any Subsidiaries ending on or before
the Effective Date. Neither ATI nor any member of the ATI Consolidated Group
shall be required to pay to SPINCO or its Subsidiaries any refund or credit of
Taxes that results from the carryback to any taxable period ending on or before
the Effective Date of any net operating loss, capital loss, or tax credit
attributable to SPINCO or any of its Subsidiaries in any taxable period
beginning after or including the Effective Date.

                                   ARTICLE IV
                  RETENTION OF RECORDS; STATUTES OF LIMITATIONS

         SECTION 4.1. RETENTION OF RECORDS. ATI and SPINCO agree to retain the
appropriate records which may affect the determination of the liability for
Taxes of any member of the ATI Consolidated Group or the SPINCO Group,
respectively, until such time as there has been a Final Determination with
respect to such liability for Taxes. A party may satisfy its obligations under
the preceding sentence by allowing the other party to duplicate records at such
second party's expense.

         SECTION 4.2. DESTRUCTION OF RECORDS. Any member of the SPINCO Group
intending to destroy any materials, records, or documents relating to Taxes
shall provide ATI 90 days advance notice and the reasonable opportunity to copy
or take possession of such materials, records, or documents.

         SECTION 4.3. STATUTE OF LIMITATIONS. ATI and SPINCO will notify each
other in writing of any waivers or extensions of the applicable statute of
limitations that may affect the period for which any materials, records, or
documents must be retained.

                                    ARTICLE V
                          REPRESENTATIONS AND COVENANTS

         SECTION 5.1. COMPLIANCE WITH IRS RULING. SPINCO shall, and shall cause
each member of the SPINCO Group to, comply with each representation and
statement concerning SPINCO and the SPINCO Group made in the Ruling Request and
in the materials submitted to the IRS in connection with the Ruling Request,
including, without limitation, statements relating to actions regarding the
Public Offering and the use of Public Offering proceeds by the SPINCO Group.
SPINCO has reviewed the materials submitted to the IRS in

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connection with the Ruling Request and represents to ATI that these materials,
including without limitation, any statements and representations concerning
SPINCO, its business operations, capital structure and/or organization, are
complete and accurate. During the Restricted Period, neither SPINCO nor any
member of the SPINCO Group shall take any action, refrain from taking any action
or enter into any transaction or series of transactions or agree to take any
action, refrain from taking any action or enter into any transaction or series
of transactions that could jeopardize the tax-free status of the Distribution,
including any action, inaction or transaction that would be inconsistent with
any representation or statement made to the IRS in connection with the Ruling
Request, unless prior thereto SPINCO obtains the express written consent of ATI
which consent will be granted, if at all, in the sole discretion of ATI. SPINCO
hereby represents and warrants to ATI that SPINCO has no intention to undertake
or allow to be undertaken any of the transactions set forth in Section
5.2(a)(iii), nor does SPINCO or any member of the SPINCO Group have any
intention to cease to engage in the active conduct of its trade or business
(within the meaning of Section 355(b)(2) of the Code).

         SECTION 5.2. COVENANTS.

         (a) Without limiting the generality of Section 5.1, SPINCO and each
member of the SPINCO Group jointly and severally covenant and agree with ATI
that during the Restricted Period or, in the case of a transaction described in
Section 5.2(a)(iii)(4), the Restricted Redemption Period:

                  (i) SPINCO and the members of the SPINCO Group will continue
         to engage in its business, and will continue to maintain a substantial
         portion of their respective assets and business operations, as they
         existed immediately prior to the Distribution; provided that the
         foregoing shall not be deemed to prohibit SPINCO and the members of the
         SPINCO Group from entering into or acquiring other businesses or
         operations or from disposing of or shutting down segments of such
         Businesses so long as SPINCO and the members of the SPINCO Group
         continue to engage in such businesses and continue to so maintain such
         substantial portion of their assets and business operations;

                  (ii) SPINCO will continue to manage and to own (A) directly,
         assets which represent at least 50% of the Gross Asset Value which
         SPINCO managed and owned directly immediately after the Distribution,
         and (B) directly or indirectly, through one or more entities, assets
         which represent at least 50% of the Gross Asset Value which SPINCO
         owned indirectly through one or more entities immediately after the
         Distribution;

                  (iii) xcept as provided in Section 5.2(c), neither SPINCO nor
         any of its Affiliates nor any of its or their respective directors,
         officers or other representatives (acting in their capacity as
         directors, officers, or representatives) will undertake, authorize,
         approve, recommend, permit, facilitate, or enter into any contract, or
         consummate any transaction with respect to:

                           (1) the issuance of SPINCO common stock (including
                  options, warrants, rights or securities exercisable for, or
                  convertible into, SPINCO

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                  common stock) in a single transaction or in a series of
                  related or unrelated transactions (including the Public
                  Offering) which represents (treating any such options,
                  warrants, rights, or securities as exercised or converted) 40%
                  or more of the outstanding shares of SPINCO common stock;

                           (2) the issuance of any class or series of capital
                  stock or any other instrument (other than SPINCO common stock
                  and options, warrants, rights or securities exercisable for,
                  or convertible into, SPINCO common stock) that would
                  constitute equity for federal tax purposes (such classes or
                  series of capital stock and other instruments being referred
                  to herein as "Disqualified SPINCO Stock");

                           (3) the issuance of any options, rights, warrants,
                  securities or similar arrangements exercisable for, or
                  convertible into, Disqualified SPINCO Stock;

                           (4) any redemptions, repurchases or other
                  acquisitions of capital stock or other equity interests in
                  SPINCO by SPINCO; and/or

                           (5) the dissolution, merger, or complete or partial
                  liquidation of SPINCO or any announcement of such action.

         (b) In addition to the other representations, warranties, covenants and
agreements set forth in this Agreement, SPINCO and each member of the SPINCO
Group will take, or refrain from taking, as the case may be, such actions as ATI
may request to ensure that the Distributions and the Other Transactions qualify
for the tax-free treatment stated in the IRS Ruling, including, without
limitation, such actions as ATI determines may be necessary to preserve the
validity of the IRS Ruling. Without limiting the generality of the foregoing,
SPINCO and the SPINCO Group shall cooperate with ATI if ATI, in its sole
discretion, determines to obtain additional or supplemental IRS rulings
pertaining to whether any actual or proposed change in facts and circumstances
affects the tax-free status of the Distribution or the Other Transactions.
Regardless of the fact that ATI shall control matters set forth in the preceding
sentence of this Section 5.2(b), the ATI Consolidated Group, on one hand, and
SPINCO and the SPINCO Group, on the other hand, shall equally bear
responsibility for all expenses associated with any such additional or
supplemental IRS rulings; provided, however, that any expenses associated with
any additional or supplemental IRS Rulings based on a proposed action or
omission by SPINCO or a member of the SPINCO Group will be borne solely by
SPINCO.

         (c) Following the Effective Date, SPINCO and its Affiliates shall not
take any action or engage in conduct otherwise prohibited by Section 5.2 unless
prior to such action or conduct, as the case may be, SPINCO receives express
written consent from ATI which consent will be granted, if at all, in the sole
discretion of ATI.

         (d) SPINCO will consummate the Public Offering within one year after
the Effective Date and will use the Public Offering proceeds in the manner and
during time periods set forth in the Ruling Request.

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         (e) If, within two years after the Public Offering, SPINCO disposes of
any assets, other than inventory, SPINCO will use the proceeds (net of tax and
transaction costs) from such disposition in a manner that is, in ATI's sole
discretion, consistent with the business purpose of expanding SPINCO's business
as set forth in the Ruling Request.

                                   ARTICLE VI
                          SPINCO INDEMNITY OBLIGATIONS

         SECTION 6.1. SPINCO INDEMNITY. If SPINCO, or another member (or former
member) of the SPINCO Group (collectively, the "Indemnifying Parties") takes or
fails to take any action whether or not prohibited or required by Article V or
violates a representation or covenant in Article V or in the Ruling Request, and
the Distribution or any of the Other Transactions fail to or otherwise do not
qualify for the tax treatment stated in the IRS Ruling as a result of such
action, failure to take action, or violation, then the Indemnifying Parties
shall jointly and severally defend, indemnify and hold harmless ATI and each
member of the ATI Consolidated Group and each of their respective directors,
officers, employees, agents or other representatives (collectively, and/or
individually, as the case may be, the "Indemnified Party") against any liability
for such Taxes which the Indemnified Party may assume or otherwise incur and any
and all Taxes or other liabilities directly or indirectly imposed upon or
incurred by the Indemnified Party as a result of such failure or lack of
qualification, including, without limitation, any liability of the Indemnified
Party arising from Taxes imposed on stockholders of ATI whether or not any
stockholder or stockholders of ATI, or the IRS or other taxing authority,
successfully seeks recourse against the Indemnified Party on account of any such
failure.

         SECTION 6.2. TENDER OFFER OR PURCHASE OFFER. Notwithstanding anything
to the contrary set forth in this Agreement, if, during the Restricted Period,
any Person or Group of Affiliated Persons or Associates acquires Beneficial
Ownership of SPINCO common stock (or any other class of outstanding SPINCO
stock) or commences a tender or other purchase offer for the capital stock of
SPINCO or initiates any other form of transaction to acquire directly or
indirectly SPINCO capital stock, upon consummation of which such Person or Group
of Affiliated Persons or Associates would acquire Beneficial Ownership of SPINCO
common stock (or any other class of outstanding SPINCO stock or equity) and as a
result thereof the Distribution or any of the Other Transactions shall fail to
or otherwise do not qualify for the tax treatment stated in the IRS Ruling then
the Indemnifying Parties shall defend, indemnify and hold harmless the
Indemnified Party against any liability for Taxes which the Indemnified Party
may assume or otherwise incur and any and all Taxes or other liabilities
directly or indirectly imposed upon or incurred by any Indemnified Party and/or
its stockholders as a result of such failure.

         SECTION 6.3. EFFECT OF EXPRESS WRITTEN CONSENT OF ATI. The Indemnified
Party shall be defended, indemnified and held harmless under Section 6.1 without
regard to the fact that the Indemnifying Party may have received the express
written consent of ATI as contemplated by Article V. The Indemnified Party shall
be defended, indemnified and held harmless under Section 6.2 whether or not the
acquisition of Beneficial Ownership results from a transaction which is not
prohibited under Article V.

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                                   ARTICLE VII
                     CALCULATION OF SPINCO INDEMNITY AMOUNTS

         SECTION 7.1. AMOUNT OF INDEMNITY. The amount indemnified against under
Article VI ("Indemnified Liability") for a Tax based on or determined with
reference to income shall be deemed to be, for each applicable taxing
jurisdiction, an amount determined by multiplying (i) the taxing jurisdiction's
highest marginal corporate income or tax rate for the taxable period in which
the Distribution or Other Transaction occurs, times (ii) the gain or income of
the Indemnified Party which is subject to such Tax. In the case of other
Indemnified Liabilities, the amount of the Indemnified Liability shall be equal
to the amount so owed. In addition, the amount of any Indemnified Liability
shall be increased by any interest, costs, legal and professional fees,
additions, expenses and penalties incurred by the Indemnified Party. All amounts
payable under this Article VII shall, to the extent that such amounts constitute
taxable income, be grossed-up, based on the tax rate referred to in clause (i)
of the first sentence of this Section 7.1.

                                  ARTICLE VIII
                     PROCEDURAL ASPECTS OF SPINCO INDEMNITY

         SECTION 8.1. GENERAL.

         (a) If either the Indemnified Party or any of the Indemnifying Parties
receives any written notice of deficiency, claim or adjustment or any other
written communication from a taxing authority or any other Person that may
result in an Indemnified Liability, the party receiving such notice or
communication shall promptly give written notice thereof to the other parties,
provided that any delay by the Indemnified Party in so notifying an Indemnifying
Party shall not relieve the Indemnifying Party of any liability hereunder,
except to the extent the Indemnifying Party is materially and adversely
prejudiced by such delay.

         (b) Each party hereto undertakes and agrees that from and after such
time as it obtains knowledge that any representative of a taxing authority has
begun to investigate or inquire into the Distribution or any of the Other
Transactions (whether or not such investigation or inquiry is a formal or
informal investigation or inquiry), such party shall (i) notify the other
parties thereof, provided that any delay by the Indemnified Party in so
notifying the Indemnifying Party shall not relieve the Indemnifying Party of any
liability hereunder (except to the extent the Indemnifying Party is materially
and adversely prejudiced by such delay), (ii) consult with the other parties
from time to time as to the conduct of such investigation or inquiry, (iii)
provide the other parties with copies of all correspondence with such taxing
authority or any representative thereof or other Person pertaining to such
investigation or inquiry, and (iv) arrange for a representative of the other
parties to be present at all meetings with such taxing authority or any
representative thereof pertaining to such investigation or inquiry.

         (c) SPINCO undertakes and agrees to give full cooperation and support
to ATI, including without limitation, attestations and/or access to Information,
as requested by ATI, to document and verify the use of the Public Offering
proceeds in the manner and during the time period set forth in the Ruling
Request. SPINCO will submit a quarterly accounting to ATI, due

                                       12
<PAGE>   13

within 30 days after the end of each calendar quarter, which sets forth in
detail the use of Public Offering proceeds. This information will be submitted
to ATI in a format substantially similar to the chart attached hereto as
Appendix I.

         SECTION 8.2. CONTESTS.

         (a) If (i) the Indemnifying Party furnishes the Indemnified Party with
evidence satisfactory to the Indemnified Party of its ability to pay the full
amount of the Indemnified Liability and (ii) such Indemnifying Party
acknowledges in writing that the asserted liability is an Indemnified Liability,
such Indemnifying Party may assume and direct the tax examination,
administrative appeal, hearing, arbitration, suit or other proceeding (each a
"Proceeding") commenced, filed or otherwise initiated or convened to investigate
or resolve the existence and extent of such Indemnified Liability.

         (b) Notwithstanding the foregoing, if at any time during a Proceeding
controlled by the Indemnifying Party pursuant to Section 8.2(a), such
Indemnifying Party fails to provide evidence satisfactory to the Indemnified
Party of its continuing ability to pay the full amount of the Indemnified
Liability or the Indemnified Party determines that such Indemnifying Party may
be unable to pay the full amount of the Indemnified Liability, then the
Indemnified Party may immediately assume control of and direct the Proceedings.

         (c) During the period in which the Indemnifying Party assumes and
directs the Proceeding, if the Indemnified Liability is grouped with other
unrelated asserted liabilities or issues in the Proceeding, the parties shall
use their respective best efforts to cause the Indemnified Liability to be the
subject of a separate proceeding. If such severance is not possible, the
Indemnifying Party shall assume and direct and be responsible only for the
matters relating to the Indemnified Liability.

         (d) In addition to the amounts referred to in Section 6.1, an
Indemnifying Party shall pay all out-of-pocket expenses and other costs related
to the Indemnified Liability, including but not limited to fees for attorneys,
accountants, expert witnesses or other consultants retained by such Indemnifying
Party and/or the Indemnified Party with respect to a claim pursuant to this
Agreement. To the extent that any such expenses and other costs have been or are
paid by an Indemnified Party, the Indemnifying Party shall promptly upon written
request reimburse the Indemnified Party therefor.

         (e) An Indemnifying Party shall not pay (unless otherwise required by a
proper notice of levy and after prompt written notification to the Indemnified
Party of receipt of notice and demand for payment), settle, compromise or
concede any portion of the Indemnified Liability without the express written
consent of the Indemnified Party. An Indemnifying Party shall, on a timely
basis, keep the Indemnified Party informed of all developments in the Proceeding
and provide the Indemnified Party with copies of all pleadings, briefs, orders,
and other written papers; provided that in the event that the Indemnifying Party
determines that the providing of a written paper could waive an attorney-client
privilege, the parties shall take all reasonable measures to permit the
compliance with such obligation in a manner that avoids such consequence.

                                       13
<PAGE>   14

         (f) Any Proceeding which is not controlled or which is no longer
controlled by an Indemnifying Party pursuant to Section 8.2 shall be controlled
and directed exclusively by the Indemnified Party, and any related out-of-pocket
expenses and other costs incurred by the Indemnified Party, including but not
limited to, fees for attorneys, accountants, expert witnesses or other
consultants, with respect to a claim pursuant to this Agreement, shall be
reimbursed by such Indemnifying Party. An Indemnified Party will not be required
to pursue the claim in federal district court, the Court of Federal Claims or
any state or foreign court if as a prerequisite to such court's jurisdiction,
the Indemnified Party is required to pay the asserted liability unless the funds
necessary to invoke such jurisdiction are provided by such Indemnifying Party.

         SECTION 8.3. TIME AND MANNER OF PAYMENT. Upon receipt of notice of a
Final Determination, an Indemnifying Party shall pay, within seven (7) business
days of such receipt, to the Indemnified Party the amount of the Indemnified
Liability and any expenses or other costs indemnified against (less, in the case
of an Indemnified Liability for Taxes, any amount of such Taxes paid directly by
an Indemnifying Party to the taxing authority). With respect to payments of an
Indemnified Liability for amounts other than Taxes including any and all
Liabilities with respect to ATI stockholders, the Indemnifying Party shall pay
to the Indemnified Party the amount of this Indemnified Liability within seven
(7) days of a final determination of the amount of such Liability and, in the
case of Liabilities with respect to ATI stockholders, no less than seven (7)
days prior to the date that payment is required to be made to such stockholders.
Such payment shall be paid by wire transfer of immediately available funds to an
account designated by the Indemnified Party by written notice to an Indemnifying
Party at the address specified in Section 10.11 prior to the due date of such
payment. If an Indemnifying Party delays making payment beyond the due date
hereunder, such party shall pay interest on the amount unpaid at the IRS
Interest Rate for each day and the actual number of days for which any amount
due hereunder is unpaid.

         SECTION 8.4. COOPERATION. The parties shall cooperate with one another
in a timely manner in any administrative or judicial Proceeding involving any
matter that may result in an Indemnified Liability.

         SECTION 8.5. ADMINISTRATION. ATI's and SPINCO's Chief Tax Officer or
other designated tax representative shall have primary responsibility for the
day-to-day administration of the provisions of this Agreement.

                                   ARTICLE IX
                                    DISPUTES

         SECTION 9.1. DISPUTES.

         (a) Resolution of any and all disputes arising from or in connection
with this Agreement, whether based on contract, tort, statute or otherwise,
including, but not limited to, unreasonable withholding of consent and disputes
in connection with claims by third parties (collectively, "Disputes"), shall be
subject to the provisions of this Section 9.1; provided, however, that nothing
contained herein shall preclude either party from seeking or obtaining (i)

                                       14
<PAGE>   15

injunctive relief or (ii) equitable or other judicial relief to enforce the
provisions hereof or to preserve the status quo pending the final resolution of
Disputes hereunder.

         (b) Either party may give the other party written notice of any Dispute
not resolved in the normal course of business. The parties shall attempt in good
faith to resolve any Dispute promptly by negotiation between executives of the
parties who have authority to settle the controversy. Within 15 days after
delivery of the notice, the foregoing executives of both parties shall meet at a
mutually acceptable time and place, and thereafter as often as they reasonably
deem necessary for a period not to exceed 5 days, to attempt to resolve the
Dispute. All reasonable requests for information made by one party to the other
will be honored. If the parties do not resolve the Dispute within such 20 day
period (the "Initial Mediation Period"), the parties shall attempt in good faith
to resolve the Dispute by negotiation between (a) in the case of ATI, the Chief
Financial Officer and General Counsel, and (b) in the case of SPINCO, the Chief
Financial Officer and General Counsel (collectively, the "Designated Officers").
Such officers shall meet at a mutually acceptable time and place (but in any
event no later than 20 days following the expiration of the Initial Mediation
Period) and thereafter as often as they reasonably deem necessary for a period
not to exceed 20 days, to attempt to resolve the Dispute.

         (c) If the Dispute has not been resolved by negotiation within 50 days
of the first party's notice, or if the parties failed to meet within 15 days of
the first party's notice, or if the Designated Officers failed to meet within 35
days of the first party's notice, either party may commence any litigation or
other procedure allowed by law.

                                    ARTICLE X
                                     GENERAL

         SECTION 10.1. ELECTIONS UNDER CODE SECTION 1552. Nothing in this
Agreement is intended to change or otherwise affect any election made by or on
behalf of the ATI Consolidated Group with respect to the calculation of earnings
and profits under Code Section 1552.

         SECTION 10.2. PRE-DISTRIBUTION EARNINGS AND PROFITS. ATI and SPINCO
agree to allocate pre-Distribution earnings and profits in accordance with
Treasury Regulation Sections 1.312-10 and 1.1502-33.

         SECTION 10.3. REMEDIES. SPINCO acknowledges that its obligations under
Article V of this Agreement are of a special, unique, unusual and extraordinary
character. Because the failure of SPINCO to perform its obligations set forth in
Article V of this Agreement could cause unique and extraordinary injury to ATI,
ATI shall, notwithstanding anything to the contrary herein, have the right in
addition to any other remedies available, at law or in equity, to seek an
injunction in a court of equity to compel SPINCO to perform such obligations.
SPINCO hereby waives any and all defenses it may have on the ground of lack of
jurisdiction or competence of the court to grant an injunction or other
equitable relief, or otherwise, and agrees that it will not assert any such
defense or any defense to a request by ATI for injunctive relief based on the
alleged existence of an adequate remedy at law or for money damages. Without
limiting the foregoing, SPINCO hereby waives the right to require ATI to post
any bond or other security

                                       15
<PAGE>   16

with respect to any proceeding to enforce any provisions of this Agreement. The
existence of the rights of ATI set forth in this Section 10.3 shall not preclude
any other rights and remedies at law or in equity which ATI may have.

         SECTION 10.4. ASSIGNMENT. Neither of the parties may assign or delegate
any of its rights or duties under this Agreement without the prior written
consent of the other party. This Agreement shall be binding upon, and shall
inure to the benefit of, the parties hereto and their respective successors and
permitted assigns, by merger, acquisition of assets or otherwise.

         SECTION 10.5. FURTHER ASSURANCES. Subject to the provisions hereof, the
parties hereto shall make, execute, acknowledge, and deliver such other
instruments and documents, and take all such other actions, as may be reasonably
required in order to effectuate the purposes of this Agreement and to consummate
the transactions contemplated hereby. Subject to the provisions hereof, each of
the parties shall, in connection with entering into this Agreement, performing
its obligations hereunder and taking any and all actions relating hereto, comply
with all applicable laws, regulations, orders, and decrees, and promptly provide
the other parties with all such information as they may reasonably request in
order to be able to comply with the provisions of this Agreement.

         SECTION 10.6. WAIVERS. No failure or delay on the part of the parties
in exercising any power or right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such right or power, preclude
any other or further exercise thereof or the exercise of any other right or
power. No modification or waiver of any provision of this Agreement nor consent
to any departure by the parties therefrom shall in any event be effective unless
the same shall be in writing, and then such waiver or consent shall be effective
only in the specific instance and for the purpose for which given.

         SECTION 10.7. CHANGE OF LAW. If, due to any change in applicable law or
regulations or their interpretation by any court of law or other governing body
having jurisdiction subsequent to the date of this Agreement, performance of any
provision of this Agreement or any transaction contemplated thereby shall become
impracticable or impossible, the parties hereto shall use their best efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such provision.

         SECTION 10.8. CONFIDENTIALITY. Subject to any contrary requirement of
law and the right of each party to enforce its rights hereunder in any legal
action, each party agrees that it shall keep strictly confidential, and shall
cause its employees and agents to keep strictly confidential, any information
which it or any of its employees or agents may acquire pursuant to, or in the
course of performing its obligations under, any provision of this Agreement.

         SECTION 10.9. HEADINGS. Descriptive headings are for convenience only
and shall not control or affect the meaning or construction of any provision of
this Agreement.

                                       16
<PAGE>   17

         SECTION 10.10. COUNTERPARTS. For the convenience of the parties, any
number of counterparts of this Agreement may be executed by the parties hereto,
and each such executed counterpart shall be, and shall be deemed to be, an
original instrument.

         SECTION 10.11. NOTICES. All notices, requests, claims and other
communications hereunder shall be in writing and shall be given or made (and
shall be deemed to have been duly given or made upon receipt) by delivery by
hand, by reputable overnight courier service, by facsimile transmission, or by
registered or certified mail (postage prepaid, return receipt requested) to the
respective parties at the addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this Section 10.11)
listed below:

               Allegheny Teledyne Incorporated
               1000 Six PPG Place
               Pittsburgh, Pennsylvania  15222-5479
               Attn:  Jon D. Walton, Senior Vice President, General Counsel
                                         and Secretary
               Fax No.:  412-394-2837

               Water Pik Technologies, Inc.
               660 Newport Center Drive
               Suite 470
               Newport Beach, California 92660
               Attn:  Michael P. Hoopis, President and Chief Executive Officer
               Fax No.:  949-719-6472

or to such other address as any party may, from time to time, designate in a
written notice given in a like manner. Notice given by hand shall be deemed
delivered when received by the recipient. Notice given by mail as set out above
shall be deemed delivered five (5) calendar days after the date the same is
mailed. Notice given by reputable overnight courier shall be deemed delivered on
the next following business day after the same is sent. Notice given by
facsimile transmission shall be deemed delivered on the day of transmission
provided telephone confirmation of receipt is obtained promptly after completion
of transmission.

         SECTION 10.12. COSTS AND EXPENSES. Unless otherwise specifically
provided herein, each party agrees to pay its own costs and expenses resulting
from the fulfillment of its respective obligations hereunder.

         SECTION 10.13. CANCELLATION OF PRIOR TAX ALLOCATION OR TAX-SHARING
AGREEMENTS. On or prior to the Effective Date, ATI shall cancel or cause to be
canceled all agreements (other than this Agreement) providing for the allocation
or sharing of Taxes to which any member of the SPINCO Group would otherwise be
bound following the Distribution.

         SECTION 10.14. INTEREST ON LATE PAYMENTS. If a party makes any payment
beyond the due date hereunder, such party shall pay interest on the amount
unpaid at the IRS

                                       17
<PAGE>   18

Interest Rate for each day and the actual number of days for which any amount
due hereunder is unpaid.

         SECTION 10.15. POWER OF ATTORNEY. Each member of the SPINCO Group shall
execute and deliver to ATI any power of attorney or other document reasonably
requested by ATI in connection with the filing of the Tax Returns and payment of
Taxes described in Article II hereof, or any Proceeding described in Article
VIII hereof. Each member of the ATI Consolidated Group shall execute and deliver
to SPINCO a power of attorney in connection with any matters controlled by
SPINCO under Section 2.2.

         SECTION 10.16. GENERAL. This Agreement, including the attachments,
shall constitute the entire agreement between the parties hereto with respect to
the subject matter hereof and shall supersede all prior agreements and
undertakings, both written and oral, between the parties with respect to the
subject matter hereof and thereof. This Agreement may not be amended or modified
except (a) by an instrument in writing signed by, or on behalf of, the parties
or (b) by a waiver in accordance with Section 10.6. This Agreement shall be
binding upon and inure solely to the benefit of the parties hereto and their
respective present and future Subsidiaries, and nothing herein, express or
implied, is intended to or shall confer upon any third parties any legal or
equitable right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement.

         SECTION 10.17. GOVERNING LAW: CONSENT TO JURISDICTION.

         (a) This Agreement shall be governed by and construed and interpreted
in accordance with the laws of the Commonwealth of Pennsylvania as to all
matters, including matters of validity, construction, effect, enforceability,
performance and remedies, irrespective of the choice of laws and principles of
the laws of the Commonwealth of Pennsylvania.

         (b) Each of the parties hereto irrevocably submits to the exclusive
jurisdiction of (i) the Court of Common Pleas of Allegheny County, Pennsylvania
and (ii) the United States District Court for the Western District of
Pennsylvania, for the purposes of any suit, action or other proceeding arising
out of this Agreement or any transaction contemplated hereby or thereby (and
agrees not to commence any action, suit or proceeding relating thereto except in
such courts). Each of the parties hereto further agrees that service of any
process, summons, notice or document hand delivered or sent by U.S. registered
mail to such parties respective address set forth in Section 10.11 will be
effective service of process for any action, suit or proceeding in Pennsylvania
with respect to any matters to which it has submitted to jurisdiction as set
forth in the immediately preceding sentence. Each of the parties hereto
irrevocably and unconditionally waives any objection to the laying of venue of
any action, suit or proceeding arising out of this Agreement or the transactions
contemplated hereby or thereby (i) the Court of Common Pleas of Allegheny
County, Pennsylvania or (ii) the United States District Court for the Western
District of Pennsylvania, and hereby further irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such action,
suit or proceeding brought in any such court has been brought in an inconvenient
forum.

                                       18
<PAGE>   19

         SECTION 10.18. SEVERABILITY. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any law or
public policy, all other terms and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the parties as closely as possible in an acceptable manner in
order that the transactions contemplated hereby are consummated as originally
contemplated to the greatest extent possible.

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed by their respective officers, each of whom is duly authorized, all
as of the Effective Date.

                             ALLEGHENY TELEDYNE INCORPORATED

                             By:  /s/ Jon D. Walton
                                -----------------------------------
                             (Name)
                             (Title)

                             WATER PIK TECHNOLOGIES, INC.

                             By:  /s/ Michael Hoopis
                                -----------------------------------
                             (Name)
                             (Title)

                             WATER PIK, INC.

                             By:  /s/ Michael Hoopis
                                -----------------------------------
                             (Name)
                             (Title)

                             LAARS, INC.

                             By:  /s/ Michael Hoopis
                                -----------------------------------
                             (Name)
                             (Title)<PAGE>   1
                                                                   Exhibit 10.27

                       ALLEGHENY TECHNOLOGIES INCORPORATED

                      EXECUTIVE DEFERRED COMPENSATION PLAN

                   as amended and restated as of July 9, 1994,
            further amended and restated as of December 31, 1998 and
               further amended and restated as of December 7, 1999

<PAGE>   2

1    Purpose. The Allegheny Technologies Incorporated Executive Deferred
Compensation Plan, formerly known as the Allegheny Teledyne Incorporated
Executive Deferred Compensation Plan which in turn was the successor to the
Teledyne, Inc. Executive Deferred Compensation Plan, is an unfunded plan
maintained for the purpose of providing deferred compensation for a select group
of management or highly compensated employees, within the meaning of Sections
201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act
of 1974, as amended ("ERISA").

2    Definitions.

         2.1 "Account" shall mean the bookkeeping account maintained by the
Committee for each Participant that is credited with (1) the portion of the
Participant's Salary that he elects to defer, (2) the portion of the
Participant's Bonus that he elects to defer, (3) portions of the Participant's
account balance under the Prior Plan and (4) earnings on such amounts.

         2.2 "Beneficiary" shall mean the Participant's spouse or, if the
Participant has no spouse or the spouse consents in writing in the presence of a
notary public, the person or persons, trustee, or other legal entity or entities
last designated by the Participant on a form substantially as set forth in
Exhibit "A" attached hereto to receive the benefits specified hereunder in the
event of the Participant's death. If the Participant has not designated a
beneficiary or if no person designated as a beneficiary survives the
Participant, the payment of the Participant's benefits under this Plan following
his death shall be made (a) to the Participant's spouse, if living, (b) if his
spouse is not then living, to his then living issue by right of representation,
(c) if neither his spouse nor his issue are then living, to his then living
parents, or (d) if none of the above are then living, to his estate.
Notwithstanding the foregoing, the Beneficiary of an Insurable Participant under
the Plan must be the same as the beneficiary designated with respect to the
benefit provided under Article 8 hereof if the Insurable Participant dies prior
to his Payment Eligibility Date.

         2.3 "Bonus" shall mean the award or awards payable (i) under the
Allegheny Technologies Incorporated Annual Incentive Plan (or the comparable
annual incentive plan of a subsidiary, if applicable, and any predecessor or
successor program to any such annual incentive plan) or (ii) as a special bonus
under a written employment agreement between the Company or a subsidiary and a
Participant.

         2.4 "Code" shall mean the Internal Revenue Code of 1986, as amended.

         2.5 "Committee" shall mean the administrative committee appointed
pursuant to Section 9.1 of the Plan.

         2.6 "Company" shall mean Allegheny Technologies Incorporated, a
Delaware corporation, and any corporation which is a subsidiary of the
corporation (within the meaning of

<PAGE>   3

Code Section 424(f)) of Allegheny Technologies Incorporated, unless the context
requires otherwise.

         2.7 "Compensation" shall mean the Salary and Bonus paid by the Company
to a Participant.

         2.8 "Director of Human Resources" shall mean the Director, Human
Resources Administration - Pension and Benefits of Allegheny Technologies
Incorporated located at 1000 Six PPG Place, Pittsburgh, Pennsylvania 15222-5479
or such other person as the Committee may from time to time designate.

         2.09 "Effective Date" shall mean September 1, 1994.

         2.10 "Eligible Employee" shall mean:

                  2.10.1 For a Plan Year other than the Plan Years described in
         Sections 2.10.2, 2.10.3 and 2.10.4, each employee of the Company who:
         (a) as of December 1 of the preceding Plan Year holds the title of
         president of an operating company; or (b) received Compensation during
         the preceding Plan Year at least equal to $100,000.

                  2.10.2 For the first Plan Year of the Plan, each employee of
         the Company who: (a) as of the Effective Date holds the title of
         president of an operating company; or (b) for employees of Teledyne,
         Inc. who were participants in the Plan prior to July 9, 1998, received
         or is expected to receive Compensation during the applicable calendar
         year at least equal to the amount specified in Section 4.14(q)(1)(B) of
         the Code, as such amount is adjusted for such calendar year by the
         Secretary of the Treasury for increases in the cost of living.

                  2.10.3 For the first Plan Year in which employees of Allegheny
         Teledyne Incorporated and Allegheny Ludlum Corporation could have
         participated in the Plan, each employee of the Company who: (a) as of
         July 9, 1998 holds the title of president of an operating company; or
         (b) received or is expected to receive Compensation during calendar
         year 1998 at least equal to the amount specified in Section
         4.14(q)(1)(B) of the Code, as such amount is adjusted for such calendar
         year by the Secretary of the Treasury for increases in the cost of
         living.

                  2.10.4 For any Plan Year beginning after December 1, 1998
         which includes an employee's date of hire, each employee of the Company
         who: (a) as of the employee's date of hire holds the title of president
         of an operating company; or (b) receives Compensation during such Plan
         Year at least equal to $100,000. For purposes of this Section 2.10.4
         only, Compensation shall include Salary that would be paid if the
         employee's Salary were paid for the full Plan Year, and shall include a
         Bonus, if any, that would have been paid at 100% of the target bonus
         amount for performance during said Plan Year.

                                       -2-
<PAGE>   4

         2.11 "Fund" or "Funds" shall mean one or more of the mutual funds,
investment portfolios or contracts selected by the Committee pursuant to Section
4.2.2.

         2.12 "Initial Election Period" shall mean the first thirty days of the
first Plan Year during which an employee of the Company is an Eligible Employee
or, in the case of an employee who is an Eligible Employee on his date of hire
after the Effective Date, the first thirty days after such date of hire;
provided, however, that the Initial Election Period for employees of Allegheny
Teledyne Incorporated and Allegheny Ludlum Corporation on July 9, 1998 shall
mean the period from July 9, 1998 through July 31, 1998, unless the Committee
shall determine to extend such Initial Election Period to a date no later than
August 30, 1998.

         2.13 "Insurable Participant" shall mean a Participant who satisfies
underwriting standards for the issuance of life insurance determined by the
insurance company selected by the Company to provide the pre-distribution death
benefit described in Article 8.

         2.14 "Interest Rate" shall mean, for each Fund, an amount equal to the
net rate, expressed as a percent, of gain or loss on the assets of such Fund
during a month, reduced for calendar years beginning before December 31, 1998,
with respect to Funds selected by Insurable Participants, by .0833 percent. If a
Participant satisfied the definition of an Insurable Participant (as set forth
in Section 2.14) prior to December 31, 1998 but at the time he becomes a
Participant, but fails to satisfy such definition thereafter, the .0833 percent
reduction described in the preceding sentence shall apply only to that portion
of the net rate of gain or loss credited to the Participant's Account as:

                  (1)      the Participant's Account balance on the last of the
                           month in which such failure occurs bears to

                  (2)      the Participant's Account balance on the last day of
                           the month preceding the month for which such gain or
                           loss is allocated.

                  Effective January 1, 1999, the Interest Rate shall be, for
each Fund, the net rate, expressed as a percent, of gain or loss on the assets
of such Fund for the applicable period.

         2.15 "Participant" shall mean any Eligible Employee who, prior to the
Effective Date, has not announced his intention to retire and who (a) elects to
defer Compensation in accordance with Section 4.1, or (b) has an account balance
under the Prior Plan.

         2.16 "Payment Eligibility Date" shall mean the date selected by an
Eligible Employee on his or her Deferred Election form with respect to
compensation deferred for a given Plan Year, provided, however, (i) if a
distribution is elected for after the applicable of the Participant's
termination of employment or death, the Participant may choose only from the
first day of the month following the end of the calendar quarter in which said
termination occurs or in which occurs the fifth, tenth or fifteenth anniversary
of such event and (ii) if a distribution is elected for prior to the applicable
of the Participant's termination of employment or death, such election may not
be made for a date before the end of the Plan Year which is three calendar years
after the end

                                       -3-
<PAGE>   5

of the Plan Year for which such election is made. In the event no election is
made, the Payment Eligibility Date shall be the first day of the month following
the end of the calendar quarter in which a Participant terminates employment or
dies. A Participant receiving benefits under the Company's short-term disability
plan or on an approved leave of absence shall not be deemed to have terminated
employment for purposes of the Plan.

         2.17 "Plan" shall mean the Allegheny Technologies Incorporated
Executive Deferred Compensation Plan as set forth herein, or as amended from
time to time. The Plan was formerly known as the Allegheny Teledyne Incorporated
Executive Deferred Compensation Plan which in turn was the successor plan to the
Teledyne, Inc. Executive Deferred Compensation Plan.

         2.18 "Plan Year" shall mean the calendar year, except that the initial
Plan Year shall be the period from the Effective Date through December 31, 1994
for employees of Teledyne, Inc. and its subsidiaries, and the initial Plan Year
shall be the period from August 1, 1998 through December 31, 1998 for employees
of Allegheny Teledyne Incorporated and Allegheny Ludlum Corporation.

         2.19 "Prior Plan" shall mean the nonqualified plan or arrangement
maintained by the Company for deferral of bonuses prior to the Effective Date.

         2.20 "Retirement" shall mean the date as of which a Participant
commences to receive a benefit under a pension plan maintained by the Company,
the date as of which a Participant commences to receive disability benefits
under the Company's long-term disability plan or, in the case of a Participant
who is not entitled to benefits under the Company's long-term disability plan,
the date the Committee determines is the first date the Participant satisfies
the definition of disability set forth in that plan.

         2.21 "Salary" shall mean the base rate of pay that an employee is
entitled to receive for services rendered to the Company.

3    Participation. An Eligible Employee who, prior to the Effective Date, has
not announced his intention to retire shall become a Participant in the Plan on
(a) the first day of the first pay period for which he elects to defer a portion
of his Compensation in accordance with Section 4.1, or (b) the Effective Date if
he has an account balance under the Prior Plan.

4    Deferral Elections.

         4.1 Elections to Defer Compensation. For calendar years beginning on or
after January 1, 1999, an Eligible Employee may elect to defer, in increments of
1% and subject to the limitation set forth herein, a portion of his or her
Salary and, separately, a portion of his or her Bonus for the calendar year
following the calendar year in which a written election, on a form approved by
the Director of Human Resources or his or her designee, to defer Salary and/or
Bonus is delivered to the Director of Human Resources or his or her designee.
Each election to defer Salary and/or Bonus shall be effective for only the next
succeeding calendar, shall expire on the last day of the calendar year next
following its delivery and shall specify the Participant's

                                       -4-
<PAGE>   6

elections as to distribution time and form from among those then permitted under
the Plan. No election may be for less than 5% of the Salary or Bonus payment,
respectively, and no election shall exceed an amount which would prevent the
Eligible Employee from making required or elected contributions under employee
benefit plans or to have required federal, state and local income or payroll tax
payments made or such other amounts as determined appropriate by the Committee.
An election to defer Salary or Bonus with respect to services rendered during a
calendar year must be filed with the Director of Human Resources or his or her
designee on or before December 1 of the preceding calendar year. For calendar
years ending before January 1, 1999, deferrals shall be governed by the Plan as
in effect as of that date.

                           4.1.2 Initial Election Period. Each Eligible Employee
         may elect to defer Compensation by filing with the Director of Human
         Resources or his or her designee an election, on a form provided by the
         Committee, no later than the last day of his or her Initial Election
         Period. An election to defer Compensation during the Initial Election
         Period shall be effective with respect to the Participant's Salary
         earned during the first pay period beginning after the election and
         with respect to the portion of the Participant's Bonus attributable to
         the portion of the calendar year following the election.

                           4.1.3 Elections other than Elections during the
         Initial Election Period. Subject to the limitations of Section 4.1.2.1
         above, any Eligible Employee who fails to elect to defer Compensation
         during his or her Initial Election Period may subsequently elect to
         defer Compensation, and any Eligible Employee who has terminated a
         prior Salary deferral election may elect to again defer Salary, by
         filing with the Director of Human Resources or his or her designee an
         election, on a form provided by the Committee, to defer Compensation as
         described in Section 4.1.2.1 above. An election to defer Salary payable
         during a calendar year must be filed with the Director of Human
         Resources or his or her designee on or before December 1 of the
         preceding calendar year. An election to defer Bonus payable with
         respect to services rendered during a calendar year must be filed with
         the Director of Human Resources or his or her designee on or before
         December 1 of the preceding calendar year.

         4.2 Duration of Elections.

         4.2.1 Duration of Salary Deferral Election. Any Salary Deferral
         Election made under Section 4.1.2 or Section 4.1.3 shall remain in
         effect, notwithstanding any change in the Participant's Salary, until
         changed or terminated in accordance with the terms of this Section 4.2;
         provided, however, that such election shall terminate for any Plan Year
         for which the Participant is not an Eligible Employee. A Participant
         may increase, decrease or terminate his or her Salary deferral election
         with respect to Salary earned during a calendar year by filing a new
         election, in accordance with the terms of this Section 4.2, with the
         Director of Human Resources or his or her designee on or before
         December 1 of the preceding calendar year.

         4.2.2 Duration of Bonus Deferral Election. Any Bonus deferral election
         made under Section 4.1.2 or Section 4.1.3 shall be irrevocable and
         shall apply only to the Bonus

                                       -5-
<PAGE>   7

         payable with respect to services performed during the calendar year for
         which the election is made. For each subsequent calendar year, an
         Eligible Employee must make a new election, subject to the limitations
         set forth in this Section 4.1, to defer a percentage of his or her
         Bonus. Such election shall be on forms provided by the Committee and
         shall be filed with the Director of Human Resources or his or her
         designee on or before December 1 of the calendar year preceding the
         calendar year in which the services that are to result in the Bonus are
         performed.

         4.2.3 Extension of Election Deadline. Notwithstanding the foregoing
         provisions of this Section 4.2, the Committee may extend the deadline
         for filing elections set forth herein from December 1 of a particular
         calendar year as the Committee shall determine. The Committee shall
         give notice of such extension to all Eligible Employees.

         4.3 Investment Elections.

                           4.3.1 Investment Options. The Committee shall select
         from time to time the types of mutual funds, investment portfolios
         underlying universal life products or contracts in which Participants'
         Accounts shall be deemed to be invested. At the time an Eligible
         Employee first becomes a Participant, the Participant shall file with
         the Director of Human Resources or his or her designee a form provided
         by the Committee designating which of such types of mutual funds,
         investment portfolios or contracts the Participant's Account shall be
         deemed to be invested in for purposes of determining the amount of
         earnings to be credited to such Account. In making the designation
         pursuant to this Section 4.2.1, the Participant may specify that all or
         any portion of his Account, designated in whole percentages, be deemed
         to be invested in one or more of the types of mutual funds, investment
         portfolios or contracts selected by the Committee. A Participant may
         change monthly the designation made under this Section 4.2.1 by filing
         with the Director of Human Resources or his or her designee an
         election, on a form provided by the Committee, at any time during a
         month, with such change to be effective as of the first day of the
         month immediately succeeding the date on which such form is filed. If a
         Participant fails to elect a type of fund under this Section 4.2.1, any
         prior election shall remain in effect or, if there is no prior election
         of types of funds, any deferral election made by the Participant shall
         be void. If a Participant who receives allocations to his Account only
         pursuant to Sections 5.3 and 5.4 fails to elect a type of fund under
         this Section 4.2.1, he shall be deemed to have elected the fund or
         contract designated by the Committee as the default fund.

                           4.3.2 Committee Selection of Funds. Although the
         Participant may designate the type of mutual funds, investment
         portfolios or contracts pursuant to Section 4.2.1, the Committee shall
         select from time to time, in its sole discretion, a commercially
         available fund, portfolio or contract of each of the types selected
         pursuant to Section 4.2.1 to be the Funds. The Interest Rate of each
         such Fund shall be used to determine the amount of earnings to be
         credited to Participants' Accounts under Section 5.4.

                                       -6-
<PAGE>   8

5    Participant Accounts. The Committee shall establish and maintain an Account
for each Participant under the Plan. Each Participant's Account shall be further
divided into separate subaccounts ("subaccounts"), each of which corresponds to
a mutual fund, investment portfolio or contract elected by the Participant in
accordance with Section 4.2. A Participant's Account shall be credited as
follows:

         5.1 Salary Credits. As of the last day of each month, the Committee
shall credit the subaccounts of the Participant's Account with an amount equal
to Salary deferred by the Participant during each pay period ending in that
month in accordance with the Participant's election under Section 4.2; that is,
the portion of the Participant's deferred Salary that the Participant has
elected to be deemed to be invested in a certain type of Fund shall be credited
to the subaccount corresponding to that Fund.

         5.2 Bonus Credits. As of the last day of the month in which the Bonus
is payable, the Committee shall credit the subaccounts of the Participant's
Account with an amount equal to the portion of the Bonus deferred by the
Participant in accordance with the Participant's election under Section 4.2;
that is, the portion of the Participant's deferred Bonus that the Participant
has elected to be deemed to be invested in a particular type of Fund shall be
credited to the subaccount corresponding to that Fund.

         5.3 Prior Plan Credits. As of the Effective Date, the Committee shall
credit the subaccounts of the Participant's Account with an amount equal to 25
percent of the Participant's account balance under the Prior Plan as of the
Effective Date. As of September 1 of each of the following years, the Committee
shall credit the subaccounts of the Participant's Account with an amount equal
to the percentage set forth below of the Participant's account balance under the
Prior Plan as of such date:

                           1995             33-1/3
                           1996             50
                           1997             100

Notwithstanding the foregoing, as of a Participant's Payment Eligibility Date
prior to September 1, 1997, the Committee shall credit the subaccounts of the
Participant's Account with an amount equal to any unpaid balance then remaining
in the Participant's account under the Prior Plan.

         5.4 Earnings Credits. As of the last day of each month in which any
amount remains credited to a Participant's Account, each subaccount of a
Participant's Account shall be credited with earnings in an amount equal to that
determined by multiplying the balance credited to such subaccount as of the last
day of the preceding month by the Interest Rate for that month for the
corresponding Fund selected by the Company pursuant to Section 4.2.2.

6    Vesting. A Participant's Account shall be 100 percent vested at all times.

                                       -7-

<PAGE>   9

7    Distributions.

         7.1 Amount and Time of Distribution.

                           7.1.1 Payment as of Payment Eligibility Date. Each
         Participant (or, in the case of his death, his Beneficiary) shall be
         entitled to receive a distribution of benefits under this Plan as soon
         as practicable following his Payment Eligibility Date. The amount
         payable to a Participant shall be the amount credited to the
         Participant's Account as of his Payment Eligibility Date.

                           7.1.2 Payment Prior to Payment Eligibility Date. A
         Participant may elect by filing with the Director of Human Resources or
         his or her designee a form substantially as set forth in Exhibit "B"
         attached hereto to receive an amount equal to ninety percent of his
         Account balance at any time prior to his Payment Eligibility Date. If
         the Participant makes an election described in this Section 7.1.2: the
         balance of the Participant's Account not distributed to the Participant
         shall be forfeited to the Company; the amount to which he is entitled
         under this Section 7.1.2 shall be distributed to the Participant in a
         single lump sum within thirty days following such election; the
         Participant shall be prohibited from participating in the Plan for the
         balance of the Plan Year in which this distribution is made and the
         following Plan Year; and any elections previously made pursuant to
         Article 4 of this Plan shall cease to be effective.

         7.2 Form of Distribution.

                           7.2.1 Pre-Retirement Distributions. If a
         Participant's Payment Eligibility Date occurs prior to the date of his
         termination of employment or Retirement, the Participant's Account
         shall be paid to such Participant in the form of a single lump sum.

                           7.2.2 Post-Retirement Distributions. If a
         Participant's Payment Eligibility Date occurs on or after the date of
         his termination of employment or Retirement, the Participant's Account
         shall be paid to such Participant or, in the event of the Participant's
         death on or after his Payment Eligibility Date, his Beneficiary in the
         form of sixty quarterly installments. Such installment payments shall
         commence on the Participant's Payment Eligibility Date or as soon
         thereafter as is practicable and shall continue on the first day of
         each of the 59 calendar quarters thereafter.

                           7.2.3 Election of Optional Form of Distributions.
         Notwithstanding the provisions of Section 7.2.2, a Participant whose
         Payment Eligibility Date occurs on or after the date of his termination
         of employment or Retirement may elect to receive distribution of his
         Account balance in a single lump sum, twenty quarterly installments,
         forty quarterly installments or sixty quarterly installments provided
         that at least one year prior to his Payment Eligibility Date, the
         Director of Human Resources or his or her

                                       -8-
<PAGE>   10

         designee receives from the Participant a notice, in substantially the
         form of Exhibit "C" attached hereto, that the Participant elects to
         receive payment in one of such optional forms. Any such payment shall
         be made or commence to be made as of the Participant's Payment
         Eligibility Date. Any election made pursuant to this Section 7.2.3 may
         be revoked by filing notice of such revocation with the Director of
         Human Resources or his or her designee on or before the date which is
         one year prior to the Participant's Payment Eligibility Date.

                           7.2.4 Method for Calculating Installments. If a
         Participant or Beneficiary receives payment of his Account balance in
         installments pursuant to Section 7.2.2 or 7.2.3, the amount of each
         quarterly installment payable during the Plan Year which includes the
         Participant's Payment Eligibility Date shall equal the Participant's
         Account balance on the Payment Eligibility Date divided by the total
         number of installments the Participant or Beneficiary is scheduled to
         receive. The amount of each quarterly installment payable during each
         succeeding Plan Year, other than the last Plan Year in which the
         Participant or Beneficiary receives installment payments under the
         Plan, shall equal the Participant's Account balance on September 30 of
         the preceding Plan Year divided by the number of installments remaining
         to be paid after the last day of such preceding Plan Year. The amount
         of each quarterly installment payable during the last Plan Year in
         which the Participant or Beneficiary receives installment payments
         under the Plan shall equal the Participant's Account balance on the
         last day of the second preceding calendar quarter divided by the number
         of installments remaining to be paid after the last day of the
         preceding calendar quarter, except that the final quarterly installment
         shall be equal to the remaining balance in the Participant's Account.

                           7.2.5 Small Account Balances. Notwithstanding any
         other provision of this Section 7.2, if a Participant's Account balance
         on his Payment Eligibility Date is $10,000 or less, such Account
         balance shall be paid in a single lump sum. For calendar years
         beginning on or after January 1, 1999, $30,000 shall be substituted for
         $10,000 in the preceding sentence.

8    Pre-Distribution Death Benefit.

         8.1 Amount of Benefit. The Company shall own and maintain one or more
life insurance policies on the life of each Insurable Participant (collectively,
the "Policy") each with a death benefit no less than the death benefit payable
under this Section 8.1. Until an employee of the Company (other than a
Participant who has already been determined not to be an Insurable Participant)
completes an application for the Policy, any deferral elections made by the
employee pursuant to Article 4 hereof shall be void. If an Insurable Participant
shall die at least sixty days following the first day of the month in which
allocations pursuant to Article 5 of the Plan are first made to his Account and
prior to his Payment Eligibility Date, his Beneficiary shall receive directly
from the insurance company issuing the Policy in a single lump sum an amount
equal the lesser of (a) or (b), where (a) equals the greatest of (i) the amount
of insurance coverage in effect on December 31, 1998, (ii) the Participant's
Account balance as of a relevant time or (iii) $1,000,000 and (b) equals the
greater of: (i) ten times the amounts allocated to the Insurable

                                       -9-
<PAGE>   11

Participant's Account pursuant to Sections 5.1 and/or 5.2 during the first
twelve months in which the Insurable Participant receives allocations to his
Account; or (ii) two times the Insurable Participant's Account balance as of his
date of death if the Insurable Participant has not attained age 56 at the date
of death or, if the Insurable Participant is age 56 or older at death, 1.5 times
the Insurable Participant's Account balance as of his date of death.

         8.2 Other Rules.

                  8.2.1 Reduction of Account Balance. Notwithstanding anything
contained herein to the contrary, any benefits otherwise payable with respect to
an Insurable Participant under this Plan shall be reduced by the value of
benefits received by the Insurable Participant's Beneficiary under the Policy.

                  8.2.2 Death on or After Payment Eligibility Date. If an
Insurable Participant shall die on or after his Payment Eligibility Date, his
Beneficiary shall receive no benefits under the Policy and any death benefits
thereunder shall be paid to the Company.

                  8.2.3 Effect of Account Distribution Prior to Payment
Eligibility Date. If an Insurable Participant receives a distribution pursuant
to Section 7.1.2, for purposes of Section 8.1.1, the first twelve months in
which he receives allocations to his Account shall be deemed to be the first
Plan Year after such distribution in which he receives allocations under Section
5.1 or 5.2 and, for purposes of Section 8.1.2, the Insurable Participant's
Account shall include only amounts allocated to the Insurable Participant's
Account following such distribution and prior to his date of death.

                  8.2.4 Death Prior to Eligibility for Pre-Distribution Death
Benefit. If a Participant should die before completing the sixty-day eligibility
period for the pre-distribution death benefit set forth in Section 8.1, his
Beneficiary shall receive only the balance in the Participant's Account as of
the Participant's Payment Eligibility Date.

                  8.2.5 Failure to Remain Insurable. Notwithstanding the
foregoing provisions of this Article 8, if a Participant satisfies the
definition of an Insurable Participant (as set forth in Section 2.14) at the
time he becomes a Participant, but fails to satisfy such definition thereafter,
the pre-distribution death benefit payable to the Participant's Beneficiary
shall equal the lesser of:

                    (1) the pre-distribution death benefit determined under the
foregoing provisions of this Article 8; or

                    (2) the death benefit under the Policy payable to the
Participant's Beneficiary at the time the Participant fails to satisfy the
definition of an Insurable Participant.

                                      -10-
<PAGE>   12

9    Administration.

         9.1 Committee Action. The Plan shall be administered by the Committee,
consisting of at least three members, appointed by and holding office at the
pleasure of the Personnel and Compensation Committee of the Board of Directors
of the Company or, in the absence of a specific designation by the Personnel and
Compensation Committee of the Board of Directors of the Company, the Plan
Administrative Committee of the Company as then constituted. The Committee shall
act at meetings by an affirmative vote of a majority of the members of the
Committee. Any action permitted to be taken at a meeting may be taken without a
meeting if a written consent to the action is signed by all members of the
Committee and such written consent is filed with the minutes of the proceedings
of the Committee. A member of the Committee shall not vote or act upon any
matter which relates solely to himself as a Participant. The Chairman or any
other member or members of the Committee designated by the Chairman may execute
any certificate or other written direction on behalf of the Committee.

         9.2 Powers and Duties of the Committee. The Committee, on behalf of the
Participants and their Beneficiaries, shall enforce the Plan in accordance with
its terms, shall be charged with the general administration of the Plan, and
shall have all powers necessary to accomplish its purposes, including, but not
by way of limitation, the following:

                    9.2.1 To determine all questions relating to the eligibility
of employees to participate;

                    9.2.2 To construe and interpret the terms and provisions of
this Plan;

                    9.2.3 To compute and certify to the amount and kind of
benefits payable to Participants and their Beneficiaries;

                    9.2.4 To maintain all records that may be necessary for the
administration of the Plan;

                    9.2.5 To provide for the disclosure of all information and
the filing or provision of all reports and statements to Participants,
Beneficiaries or governmental agencies as shall be required by law;

                    9.2.6 To make and publish such rules for the regulation of
the Plan and procedures for the administration of the Plan as are not
inconsistent with the terms hereof; and

                    9.2.7 To appoint a plan administrator or, any other agent,
and to delegate to such person such powers and duties in connection with the
administration of the Plan as the Committee may from time to time prescribe.

         9.3 Construction and Interpretation. The Committee shall have full
discretion to construe and interpret the terms and provisions of this Plan,
which interpretation or construction

                                      -11-
<PAGE>   13

shall be final and binding on all parties, including but not limited to the
Company and any Participant or Beneficiary. The Committee shall administer such
terms and provisions in a uniform and nondiscriminatory manner and in full
accordance with any and all laws applicable to the Plan.

         9.4 Information. To enable the Committee to perform its functions, the
Company shall supply full and timely information to the Committee on all matters
relating to the Compensation of all Participants, their death or other cause of
termination, and such other pertinent facts as the Committee may require.

         9.5 Compensation, Expenses and Indemnity.

                  9.5.1 The members of the Committee shall serve without
compensation for their services hereunder.

                  9.5.2 The Committee is authorized at the expense of the
Company to employ such legal counsel as it may deem advisable to assist in the
performance of its duties hereunder. Expenses and fees in connection with the
administration of the Plan shall be paid by the Company.

                  9.5.3 The Company shall indemnify and save harmless the
Committee and each member thereof, and the Chief Financial Officer, the Director
of Human Resources or his or her designee, and any delegate of the Committee who
is an employee of the Company against any and all expenses, liabilities and
claims, including legal fees to defend against such liabilities and claims,
arising out of their discharge of responsibilities under or incident to the
Plan, other than expenses and liabilities arising out of willful misconduct.
This indemnity shall not preclude such further indemnities as may be available
under insurance purchased by the Company or provided by the Company under any
bylaw, agreement or otherwise, as such indemnities are permitted under
applicable law.

         9.6 Quarterly Statements. Under procedures established by the
Committee, a Participant shall receive quarterly statements with respect to such
Participant's Account.

10    Miscellaneous.

         10.1 Unsecured General Creditor. Participants and their Beneficiaries,
heirs, successors, and assigns shall have no legal or equitable rights, claims,
or interest in any specific property or assets of the Company. No assets of the
Company shall be held in any way as collateral security for the fulfilling of
the obligations of the Company under this Plan. The Company's obligation under
the Plan shall be merely that of an unfunded and unsecured promise of the
Company to pay money in the future, and the rights of the Participants and
Beneficiaries shall be no greater than those of unsecured general creditors. The
Plan is intended to be unfunded for tax purposes and for purposes of Title I of
ERISA.

                                      -12-
<PAGE>   14

         10.2 Restriction Against Assignment. The Company shall pay all amounts
payable hereunder only to the person or persons designated by the Plan and not
to any other person or corporation. No part of a Participant's Account shall be
liable for the debts, contracts, or engagements of any Participant, his
Beneficiary, or successors in interest, nor shall a Participant's Account be
subject to execution by levy, attachment, or garnishment or by any other legal
or equitable proceeding, nor shall any such person have any right to alienate,
anticipate, commute, pledge, encumber, or assign any benefits or payments
hereunder in any manner whatsoever.

         10.3 No Right to Continued Employment. Neither an employee's
participation in the Plan, nor his rights to his Account shall confer upon such
employee any right with respect to continuance of employment by or receipt of
Bonuses from the Company, nor shall such items interfere in any way with the
right of the Company to terminate such employee's employment or alter such
employee's Compensation at any time.

         10.4 Withholding. There shall be deducted from each payment made under
the Plan or, if such payment is not large enough, from any other funds payable
to the Participant, all taxes which the Company determines are required to be
withheld with respect to such payment under the Plan. The Company shall have the
right to reduce any payment by the amount of cash sufficient to provide the
amount of said taxes.

         10.5 Amendment, Modification, Suspension or Termination. The Committee
may at any time amend, modify, suspend or terminate the Plan in whole or in
part, subject to ratification by the Personnel and Compensation Committee of the
Company's Board of Directors, except that no amendment, modification, suspension
or termination shall reduce any amounts then credited to a Participant's
Account. The Company shall provide notice of such action to all Participants and
Beneficiaries of deceased Participants. In the event that one or more
subsidiaries of the Company are spun off to shareholders of the Company and a
spun off company agrees to sponsor a plan substantially similar to this Plan,
the Company may, in its discretion, cause a transfer of all, but not less than
all, liabilities with respect to employees of such new company to the new plan
adopted by that new company and, upon such transfer, the Company shall be
released of liability with respect to employees of the new company with respect
to whom liabilities have been transferred.

         10.6 Governing Law. Except to the extent that it is preempted by
federal law, this Plan shall be construed, governed and administered in
accordance with the laws of the State of Delaware.

         10.7 Receipt or Release. Any payment to a Participant or the
Participant's Beneficiary in accordance with the provisions of the Plan,
including but not limited to any payment from an insurance company, shall, to
the extent thereof, be in full satisfaction of all claims under the Plan against
the Committee and the Company. Any payment, whether by the Company or an
insurance company, to a Participant or the Participant's Beneficiary of an
amount described in Section 5.3 shall, to the extent thereof, be in full
satisfaction of all claims to such amount which the Participant or his
Beneficiary or any beneficiary designated in accordance with the Prior Plan

                                      -13-
<PAGE>   15
may have against the Company or any other person under the Prior Plan. The
Committee may require such Participant or Beneficiary, as a condition precedent
to such payment, to execute a receipt and release to such effect.

         10.8 Payments on Behalf of Minors. In the event that any amount becomes
payable under the Plan to a minor or a person who, in the sole judgment of the
Committee, is considered by reason of physical or mental condition to be unable
to give a valid receipt therefore, the Committee may direct that such payment be
made only to the conservator or the guardian of the estate of such person
appointed by a court of competent jurisdiction or such other person or in such
other manner as the Committee determines is necessary to assure that the payment
will legally discharge the Plan's obligation to such person. Any payment made
pursuant to such determination shall constitute a full release and discharge of
the Committee and the Company.

         10.9 Miscellaneous. All pronouns and any variations thereof contained
herein shall be deemed to refer to masculine or feminine, singular or plural, as
the identity of the person or persons may require. The headings used in this
Plan are for convenience only and shall not be construed in interpreting this
Plan.

                                      -14-
<PAGE>   16

EXHIBIT A
BENEFICIARY DESIGNATION

         I hereby designate the following individual or entity to receive any
benefits to which I am entitled under the Allegheny Technologies Incorporated
Executive Deferred Compensation Plan if such benefits become payable after my
death:

Name:
Address:
Relationship:
Social Security or Tax Identification Number:

I understand and acknowledge that if I am married on the date of my death and I
have designated above someone other than the individual who is my spouse on the
date of my death, such designation shall not be effective unless my spouse
consents in writing as set forth on the following page in the presence of a
notary.

Date                                       Signature

                                           Printed Name

                                      -15-
<PAGE>   17

SPOUSAL CONSENT TO BENEFICIARY DESIGNATION

         I am the spouse of _____________________. I hereby consent to the
designation made by my spouse of ____________________ as the beneficiary under
the Allegheny Technologies Incorporated Executive Deferred Compensation Plan. I
understand that this consent is valid only with respect to the naming of the
beneficiary indicated on the prior page and that the designation of any other
beneficiary will not be valid unless I consent in writing to such designation.

         This consent is being voluntarily given, and no undue influence or
coercion has been exercised in connection with my consent to the designation
made by my spouse of the beneficiary named on the prior page rather than myself
as the beneficiary under the Allegheny Technologies Incorporated Executive
Deferred Compensation Plan.

Date                                       Spouse's Signature

                                           Print Spouse's Name

State of __________________

County of__________________

         On __________ (date) before me _______________(name, title) personally
appeared ___________________________ (name of spouse)

                                 personally known to me (or)

                                 proved to me on the basis of
                                 satisfactory evidence

to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/she executed the same in his/her authorized capacity,
and that by his/her signature on the instrument the person executed the
instrument.

         WITNESS my hand and official seal.

                                           Signature of Notary

                                      -16-
<PAGE>   18

EXHIBIT B
DISTRIBUTION PRIOR TO PAYMENT ELIGIBILITY DATE

         Pursuant to Section 7.1.2 of the Allegheny Technologies Incorporated
Executive Deferred Compensation Plan (the "Plan"), I hereby elect to receive
distribution of ninety percent (90%) of my account balance under the Plan within
thirty days of the receipt of this election by the Director of Human Resources
or his or her designee of Allegheny Technologies Incorporated.

         I understand and acknowledge that as a result of this election:

         1. The balance of my account under the Plan not distributed to me shall
be forfeited to Allegheny Technologies Incorporated;

         2. I shall be prohibited from participating in the Plan for the balance
of the Plan Year in which this distribution is made and the following Plan Year;

         3. Any deferral elections previously made pursuant to Article 4 of the
Plan shall cease to be effective; and

         4. The pre-distribution death benefit provided under the Plan shall
cease to be available to my beneficiary following this distribution. If I resume
participation in the Plan to the extent permitted by the Plan in accordance with
paragraph 2 above, my beneficiary may again be eligible to receive a death
benefit under the Plan but such death benefit shall be computed only with
respect to allocations to my account under the Plan following such distribution
and prior to my date of death.

Date                                       Signature

                                           Printed Name

                                           Received by Allegheny Technologies
                                           Incorporated

                                           on

                                           by

                                      -17-
<PAGE>   19

EXHIBIT C
ELECTION OF FORM OF DISTRIBUTION

         Pursuant to Section 7.2.3 of the Allegheny Technologies Incorporated
Executive Deferred Compensation Plan (the "Plan"), I hereby notify Allegheny
Technologies Incorporated that instead of receiving distribution of my Account
balance under the Plan in sixty quarterly installments, I hereby elect that my
Account balance under the Plan be paid to me in one of the following forms:

                           forty quarterly installments;

                           twenty quarterly installments; or

                           a single lump sum.

         I understand that in order for this election to be effective:

         1. This notice must be received by Allegheny Technologies Incorporated,
c/o the Director of Human Resources or his or her designee, 1000 Six PPG Place,
Pittsburgh, Pennsylvania 15222-5479, at least one year prior to my Payment
Eligibility Date; and

         2. My Payment Eligibility Date, as that term is defined in the Plan,
must occur on or after the date as of which I commence to receive a benefit
under a pension plan maintained by Allegheny Technologies Incorporated or a
subsidiary, the date as of which I commence to receive disability benefits under
the long-term disability plan of Allegheny Technologies Incorporated or a
subsidiary, or, if I am not entitled to benefits under the long-term disability
plan of Allegheny Technologies Incorporated or a subsidiary, the date the
Administrative Committee of the Plan determines is the first date I satisfy the
definition of disability set forth in such disability plan.

Date                                       Signature

                                           Printed Name

Received by Allegheny Technologies
   Incorporated

                                           on

                                           by

                                      -18-

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