Document:

Exhibit 10.11  

AMENDED AND RESTATED EMPLOYMENT AGREEMENT  

        THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of October 23, 2001, by and between WATER PIK
TECHNOLOGIES, INC., a Delaware corporation with its principal place of business at 23 Corporate Plaza, Suite 246, Newport Beach, California 92660 (the "Company" or "Employer"), and Richard D.
Tipton (the "Executive"), an individual residing in the State of California (the "Executive"). 

 RECITALS:  

	A.
	The
Executive has been continuously employed by the Company and/or by its former parent company, Allegheny Teledyne Incorporated and its subsidiaries ("ATI"), since March 13,
2000, and currently serves as the Vice President, General Counsel and Secretary of the Company.

	B.
	The
Company and the Executive entered into an Employment Agreement dated March 9, 2000 (the "Original Agreement").

	C.
	The
passage of time and certain events, such as ATI's completion of a spin-off of the Company to ATI's shareholders on November 29, 1999, have resolved contingencies
in certain provisions of the Original Agreement and have in some cases, rendered other provisions of the Original Agreement to be no longer relevant.

	D.
	The
Company desires to amend and restate the Original Agreement and its amendments, if any, in its entirety, within this Agreement in order to eliminate unnecessary language, modify
severance and
change in control provisions, make certain provisions consistent with California law and implement other changes as deemed necessary by the Company and the Executive.

	E.
	The
Company believes the Executive will continue contributing to the growth and profitability of the Company and desires to retain the Executive as the Vice President, General Counsel
and Secretary of the Company.

	F.
	The
Executive represents that Executive has a right to enter into this Agreement, that there are no restrictions imposed by any third party Agreement which would prevent the Executive
from honoring all terms of this Agreement, and that the Executive will not enter into any arrangement in conflict with the terms of this Agreement.

	G.
	The
Executive is willing to make Executive's services available to the Company on the terms and conditions hereinafter set forth.

	H.
	The
Executive and the Company acknowledge that this Agreement supersedes the Original Agreement and any previous amendments to the Original Agreement. 

AGREEMENT  

        Therefore, in consideration of the premises, mutual covenants and agreements of the parties contained herein, and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, Employer and the Executive hereby agree as follows: 

        1.    Employment. Commencing on March 13, 2000 (the "Effective Date"), Employer, in reliance on the representations of
Executive set forth herein, shall employ (either directly or through assumption of the Original Agreement from ATI) the Executive and the Executive shall accept employment by Employer, upon the terms
and conditions set forth in this Agreement. The effectiveness of the Original Agreement was subject to the Executive's satisfactory completion of the Company's standard pre-employment
physical examination and drug and alcohol screen, which the Company and Executive acknowledge was completed prior to the Effective Date. 

        2.    Term. The term of employment (the "Term") of this Agreement shall begin on the Effective Date and, except as otherwise
provided in Sections 7, 8, 9, 10, 11 and 12 below, shall end on the first 

 

anniversary date of the Effective Date. The Term of this Agreement shall be automatically and without action by either party extended for one additional calendar month on the last business day of
each calendar month (each, an "Extension Date") so that at any given time there are no fewer than eleven (11) nor more than twelve (12) months remaining unless one party gives written
notice to the other that it no longer wishes to extend the Term of this Agreement, after which written notice, the Term shall not be further extended except as may be provided in the following
sentence. However, in the event a Change in Control occurs during the Term, this Agreement will remain in effect for the longer of: (i) the expiration of the Term; or (ii) until all
obligations of the Company hereunder have been fulfilled and all benefits required hereunder have been paid to the Executive or other party entitled thereto.    The last day of the
calendar month in which the Term hereof, as extended from time to time, is then due to expire is hereinafter referred to as the "Expiration Date." 

        3.    Duties. The Executive will serve as Vice President, General Counsel and Secretary of the Company and shall report to the
President and Chief Executive Officer ("CEO"). The Executive shall perform such duties as are consistent with the role of Vice President, General Counsel and Secretary of the Company and such other
duties as may be reasonably assigned to Executive by the CEO. 

        4.    Compensation. During the Term, Executive shall be compensated as follows: 

        (a)  Salary. As of the date of this Agreement, Executive is paid an annual salary (the "Annual Base Salary") of $190,800 to be
distributed in equal periodic installments according to Employer's customary payroll practices. The Annual Base Salary will be reviewed annually by the CEO and increased (but not decreased) if the
CEO, in its discretion, determines an increase to be appropriate, based on the types of factors the CEO usually takes into account in reviewing
executive level salaries, including, but not limited to, cost-of-living factors. 

        (b)  Annual Incentive Compensation. The Company will provide the Executive with a target bonus opportunity of
forty-five percent (45%) of Annual Base Salary under the Company's Annual Incentive Plan ("AIP"), subject to the approval of the Company's Board of Directors or applicable committee
thereof. The Annual Incentive Plan compensation paid pursuant to this subparagraph (b) is referred to as the "AIP Bonus". 

        (c)  Stock Options. The Company will grant to the Executive options to purchase such shares of common stock of the Company as
the Board of Directors may approve from time to time in light of recommendations by the appropriate committee of the Board. The vesting schedule and other terms and conditions of such options shall be
determined by the appropriate committee of the Board of
Directors, provided, however, that the initial stock option grant to the Executive shall become exercisable cumulatively in accordance with the following schedule: 20% of the shares at any time after
the first anniversary of the issue date; an additional 30% of the shares at any time after the second anniversary of the issue date; and the remaining 50% of the shares at any time after the third
anniversary of the issue date. Unless otherwise specified in the grant, all options granted after the initial grant shall become exercisable in accordance with the following schedule: one third of the
shares at any time after the first anniversary of the issue date, an additional third of the shares at any time after the second anniversary of the issue date, and the remaining number of shares at
any time after the third anniversary of the issue date. In the event of a "Change in Control" as defined herein, all options outstanding shall become immediately exercisable; provided, however, this
provision shall not be applicable if any Change in Control results from Executive's acquisition or beneficial ownership (within the meaning of Rule 13d.3 under the Securities Exchange Act) of
common stock or Company voting securities. 

        5.    Expense Reimbursement and Other Benefits. 

        (a)  Reimbursement of Expenses. During the term of Executive's employment hereunder, Employer, upon the Executive's submission
of proper substantiation in accordance with Employer's standard procedure, including copies of all relevant invoices, receipts or other evidence reasonably 

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requested by Employer, shall reimburse the Executive for all reasonable expenses actually paid or incurred by the Executive in the course of and pursuant to the business of Employer. 

        (b)  Employee Benefits. The following benefits shall be provided by the Company: (i) Executive shall participate in the
Group Health Plan (medical, dental, vision coverage as applicable), Group Life Insurance Plan, Group Disability Insurance Plan and all other insurances, or insurance plans and all employee benefit
plans provided to employees of the Company (collectively, the "Welfare Benefits"), and executive benefits and bonuses covering comparable level employees of the Company as are now or may in the future
be in effect, subject to applicable eligibility requirements (Company will pay no less than the total actual cost of the Group Health Plan premiums); (ii) Executive shall participate in
additional benefit plans, (collectively, the "Executive Benefits") which include: one Company paid well physical examination program per calendar year at the facility of Executive's choice up to a
maximum of $1,000.00 per year, tax preparation and financial planning for the Executive on an annual basis up to a maximum of $5,000.00, supplemental Company paid life and disability insurance at no
less benefit than the benefit amounts in effect as of this Agreement date, and (iii) the Executive shall participate in accordance with their respective terms in any qualified and
non-qualified, defined benefit and defined contribution plans provided to employees of the Company. 

        (c)  Automobile. During the Term, Employer shall provide the Executive with a monthly automobile allowance of not less than
$750.00 per month, and an amount intended to compensate for the tax impact of the monthly automobile allowance, to be paid with regular payroll, in equal periodic installments, according to Employer's
customary payroll practices. 

        (d)  Vacation. Beginning January 1, 2002, the Executive shall earn paid vacation at the rate of four (4) weeks
for each year of active service. The Executive will also be entitled to the paid holidays and other paid leave set forth in Employer's policies. Vacation days that are not used by Executive during any
calendar year may be carried over from year to year, but at no time can Executive accrue more than eight (8) weeks of unused vacation. Once that limit is reached, Executive shall not accrue
further vacation unless and until Executive has used some or all of Executive's accrued vacation. Holidays during any fiscal year that are not used by the Executive during such fiscal year may not be
carried over and used in any subsequent fiscal year. 

        6.    Restrictions.

        (a)  Non-competition. During the Term, the Executive shall not, directly or indirectly, engage in or have any
interest in any sole proprietorship, partnership, corporation or business or any other person or entity (whether as an executive, officer, director, partner, agent, security holder, creditor,
consultant or otherwise) that directly or indirectly (or through any affiliated entity) engages in competition with the Company (for this purpose, any business that engages in the development,
manufacture, distribution or sale of products similar to those products developed, manufactured, distributed, sold or in development by the Company at the time of termination of the Agreement shall be
deemed to be in competition with the Company); provided that such provision shall not apply to the Executive's ownership of Common Stock of the Company or the acquisition by the Executive, solely as
an investment, of securities of any issuer that are registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended (the "Securities Exchange Act"), and that are
listed or admitted for trading on any United States national securities exchange or that are quoted on the NASDAQ Stock Market, or any similar system or automated dissemination of quotations of
securities prices in common use, so long as the Executive does not control, acquire a controlling interest in or become a member of a group which exercises direct or indirect control of, more than 5%
of any class of capital stock of such corporation. 

        (b)  Nondisclosure. During the Term and for a one (1) year period after the termination of the Term for any reason, the
Executive shall not at any time divulge, communicate, use to the 

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detriment of the Company or for the benefit of any other person or persons, or misuse in any way, any Confidential Information (as hereinafter defined) pertaining to the business of the Company. Any
Confidential Information or data now or hereafter acquired by the Executive with respect to the business of the Company (which shall include, but not be limited to, information concerning the
Company's financial condition, prospects, technology, customers, suppliers, sources of leads and methods of doing business) shall be deemed a valuable, special and unique asset of the Company that is
received by the Executive in confidence and as a fiduciary, and Executive shall remain a fiduciary to the Company with respect to all of such information. For purposes of this Agreement, "Confidential
Information" means information disclosed to the Executive or known by the Executive as a consequence of or through employment by the Company (including information conceived, originated, discovered or
developed by the Executive) prior to or after the date hereof, and not generally known, about the Company or its or their respective businesses. Notwithstanding the foregoing, nothing herein shall be
deemed to restrict the Executive from disclosing Confidential Information to the extent required by law. None of the foregoing obligations and restrictions apply to any Confidential Information that
the Executive demonstrates was or became generally available to the public other than as a result of disclosure by the Executive. 

        (c)  Nonsolicitation of Employees and Clients. During the Term and for a one (1) year period after the termination of
the Term for any reason, the Executive shall not, directly or indirectly, for the Executive or for any other person, firm, corporation, partnership, association or other entity, other than in
connection with the performance of Executive's duties under this Agreement, (i) solicit for employment or attempt to employ or enter into any contractual arrangement with any employee or former
employee of Employer, unless such employee or former employee has not been employed by Employer for a period in excess of six (6) months, (ii) call on or solicit any of the actual or
targeted prospective clients of Employer on behalf of any person or entity in connection with any business competitive with the business of Employer if any Confidential Information was or would be
used or disclosed by Executive in the course of identifying, calling on, or soliciting such actual or targeted prospective clients, and/or (iii) make known the names and addresses of such
clients or any information relating in any manner to Employer's trade or business relationships with such customers (unless the Executive can demonstrate that such information was or became generally
available to the public other than as a result of a disclosure by the Executive). 

        (d)  Ownership of Developments. All copyrights, patents, trade secrets, or other intellectual property rights associated with
any ideas, concepts, techniques, inventions, processes, or works of authorship developed or created by Executive during the course of performing work for Employer or its customers (collectively, the
"Work Product") shall belong exclusively to Employer and shall, to the extent possible, be considered a work made by the Executive for hire for Employer within the meaning of Title 17 of the United
States Code. To the extent the Work Product may not be considered work made by the Executive for hire for Employer, the Executive agrees to assign, and automatically assign at the time of creation of
the Work Product, without any requirement of further consideration, any right, title, or interest the Executive may have in such Work Product. In accordance with California Labor Code
section 2870, this provision for assignment of inventions shall not apply to an invention that was developed by Executive entirely on the Executive's own time without using any of Employer's
equipment, supplies, facilities, or trade secret information, unless the invention (i) relates at the time of conception or reduction to practice to Employer's business, or actual or
demonstrably anticipated research or development of Employer, or (ii) results from work performed by the Executive for the Employer. Upon the request of Employer, the Executive shall take such
further actions, including execution and delivery of instruments of conveyance, as may be appropriate to give full and proper effect to such assignment. 

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        (e)  Books and Records. All books, records, and accounts relating in any manner to the customers of Employer, whether prepared
by the Executive or otherwise coming into the Executive's possession, shall be the exclusive property of Employer and shall be returned immediately to Employer on termination of the Executive's
employment hereunder or on Employer's request at any time. 

        (f)    Definition of Company. Solely for purposes of this Section 6, the term "Company" also shall include, along with
all current direct and indirect subsidiaries, any existing or future subsidiaries of the Company or the Parent Company that are operating during the time periods described herein and any other
entities that directly or indirectly, through one or more intermediaries, control, are controlled by
or are under common control with the Company or the Parent Company during the periods described herein. 

        (g)  Acknowledgment by Executive. The Executive acknowledges and confirms that (i) the restrictive covenants contained
in this Section 6 are reasonably necessary to protect the legitimate business interest of Employer including the Confidential Information of the Company and the goodwill it has developed with
its customers and targeted prospective clients, and (ii) the restrictions contained in this Section 6 (including without limitation the length of the term of the provisions of this
Section 6) are not overbroad, over long, or unfair and are not the result of overreaching, duress or coercion of any kind. The Executive further acknowledges and confirms that full, uninhibited
and faithful observance of each of the covenants contained in this Section 6 will not cause the Executive any undue hardship, financial, or otherwise, and that enforcement of each of the
covenants contained herein will not impair the ability to obtain employment commensurate with the abilities and on terms fully acceptable to the Executive or otherwise to obtain income required for
the comfortable support of self and family and the satisfaction of the needs of creditors. The Executive acknowledges and confirms that the Executive's special knowledge of the business of the Company
is such as would cause Employer serious injury or loss if the Executive was to use such ability and knowledge to the benefit of a competitor or were to compete with the Company in violation of the
terms of this Section 6. The Executive further acknowledges that the restrictions contained in this Section 6 are intended to be, and shall be, for the benefit of and shall be
enforceable by, Employer's successors and assigns. 

        (h)  Reformation by Court. In the event that a court of competent jurisdiction shall determine that any provision of this
Section 6 is invalid or more restrictive than permitted under the governing law of such jurisdiction, then only as to enforcement of this Section 6 within the jurisdiction of such court,
such provision shall be interpreted and enforced as if it provided for the maximum restriction permitted under such governing law. 

        (i)    Extension of Time. If the Executive shall be in violation of any provision of this Section 6 then each time
limitation set forth in this Section 6 shall be extended for a period of time equal to the period of time during which such violation or violations occur. If Employer seeks injunctive relief
from such violation in any court, then the covenants set forth in this Section 6 shall be extended for a period of time equal to the pendency of such proceeding including all appeals by the
Executive. 

        (j)    Survival. The provisions of this Section 6 shall survive the termination of this Agreement, as applicable. 

        7.    Death. The Term shall terminate upon the death of the Executive and be of no further force or effect. Upon such
termination, Employer will pay the Executive's estate a lump sum equal to the sum of (A) one times the Annual Base Salary at the date of termination and (B) one times the full amount of
the AIP Bonus available to Executive, for the full year in which the death occurred or the previous year, whichever year is higher, at the full target bonus opportunity percentage provided under 

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Section 4(b) of this Agreement, to be calculated as if 100% of all corporate and personal performance objectives in the AIP were achieved. 

        8.    Disability. If during the Term Executive is unable to perform services, by reason of illness or incapacity, even with
reasonable accommodation of any disability as required by applicable law, for a period of 180 consecutive days or more, Employer may, at its option, upon written notice to Executive, terminate the
Term and employment hereunder. If the Term is terminated as a result of the Executive's disability, Employer will pay the Executive, at the time of termination, (A) one times Annual Base Salary
at the date of termination, to be distributed in periodic installments according to Employer's customary payroll practices, (B) a lump sum equal to one times the full amount of the AIP Bonus
available to Executive, for the full year in which the termination occurred or the previous year, whichever year is higher, at the full target bonus opportunity percentage provided under
Section 4(b) of this Agreement, to be calculated as if 100% of all corporate and personal performance objectives in the AIP were achieved. Employer shall also continue to pay the premiums for
the same or substantially similar Welfare Benefits for the remainder of the Term. Notwithstanding the foregoing, if the Executive shall find other employment during the payment period pursuant to this
Section 8, then the Executive shall promptly notify Employer in writing of the date and terms of such employment and Employer shall be entitled to reduce the amount payable to the Executive
pursuant to this Section 8 during the period from the commencement of such other employment by the cash compensation received and to be received by the Executive for services rendered in
connection with such other employment. Employer reserves the right to provide this benefit through a policy of insurance. 

        9.    Termination for Cause.

        (a)  Employer
shall have the right to terminate the Term and the Executive's employment hereunder for Cause (as defined below). Upon any termination pursuant to this
Section 9, Employer shall pay to the Executive any unpaid Annual Base Salary through the effective date of termination specified in such notice of termination. Employer shall have no further
liability hereunder (subject, however, to the provisions of Section 5(a) and (d)). 

        (b)  For
purposes hereof, the term "Cause" shall mean the Executive's conviction of a felony; the Executive's personal dishonesty directly affecting the Company; willful
misconduct or gross negligence (which is not cured after prior written notice to the Executive from the President and Chief Executive Officer unless not curable or such misconduct or gross negligence
is injurious to Employer); breach of a fiduciary duty involving personal profit to the Executive; or intentional failure to substantially perform duties after written notice to the Executive from the
President and Chief Executive Officer that, in the reasonable judgment of the President and Chief Executive Officer the Executive has failed to perform specific duties. 

        10.  Termination Without Cause. At any time Employer shall have the right to terminate the Term and the Executive's employment
hereunder without Cause by written notice to the Executive. Upon any termination pursuant to this Section 10 (that is not a termination under any of Sections 7, 8, 9, 11 or 12), Employer shall
(A) pay the Executive a lump sum equal to one full year of the Executive's Annual Base Salary as of the date of termination; (B) pay Executive a lump sum equal to the full amount of the
AIP Bonus available to Executive, for the full year in which the termination occurred or the previous
year, whichever year is higher, at the full target bonus opportunity percentage provided under Section 4(b) of this Agreement, to be calculated as if 100% of all corporate and personal
performance objectives in the AIP were achieved; and (C) provide and pay the full amount of employer and employee share of the premiums for continued coverage of the Executive and Executive's
spouse and dependents under the Employer's Welfare Benefits, pursuant to COBRA as applicable, for a period of one year after the date of termination or until and to the extent the Executive is covered
by comparable Welfare Benefits, whichever occurs first, and in the event such continued coverage is not allowed by law or the Employer's Welfare Benefits plans, the Executive shall be entitled to the
cash equivalent of the premiums for such benefits and the federal income tax consequences of such 

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payments. The Company shall have no further liability hereunder (subject, however, to the provisions of Section 5(a) and (d)). The Executive shall be entitled to receive all severance payments
and benefits hereunder regardless of any future employment undertaken by the Executive as long as the Executive is in full compliance with the terms of this Agreement. 

        11.  Termination by Executive.

        (a)  The
Executive shall at all times have the right, upon 30 days written notice to Employer, to terminate the Term and employment hereunder. 

        (b)  Upon
any termination pursuant to this Section 11 by the Executive without Good Reason (as defined below), Employer shall pay to the Executive any unpaid Annual
Base Salary through the effective date of termination specified in such notice. Employer shall have no further liability hereunder (subject, however, to the provisions of Section 5(a) and (d)). 

        (c)  Upon
any termination pursuant to this Section 11 by the Executive for Good Reason under Sections 11(d)(i), 11(d)(ii) or 11(d)(iii), Employer shall pay to
the Executive the same amounts that would have been payable by Employer to the Executive under Section 10 of this Agreement as if the Executive's employment had been terminated by Employer
without Cause. Upon any termination pursuant to this Section 11 by the Executive for Good Reason under Section 11(d)(iv), Employer shall (A) pay Executive a lump sum equal to the
sum of two full years of the Executive's Annual Base Salary as of the date of termination; (B) pay Executive a lump sum equal to two times the full amount of the AIP Bonus available to
Executive, for the full year in which such termination occurs or the previous year, whichever year is higher, at the full target bonus opportunity percentage provided under Section 4(b) of this
Agreement, to be calculated as if 100% of all corporate and personal performance objectives in the AIP were achieved; (C) pay Executive a lump sum equal to the pro-rated amount of
the AIP Bonus Executive would have earned for the year in which such termination occurs, to be calculated as if 120% of all applicable corporate and personal performance objectives in the AIP were
achieved, but pro-rated based on the number of full months of employment completed by Executive in the year which such termination occurs; (D) pay Executive a lump sum equal to the
pro-rated amount of the cash portion of the Performance Share Plan Executive would have earned, to be calculated as if 120% of all applicable performance objectives in the Performance
Share Plan were achieved, but pro-rated based on the number of full months of employment completed by Executive in the year in which such termination occurs; (E) cause all
outstanding unvested stock options issued to Executive, including options issued under the Performance Share Plan, to become immediately vested and exercisable and remove all
restrictions on restricted stock awarded; (F) cause the Executive's interest in the Company's contribution to the non-qualified deferred compensation plan to become immediately
vested; (G) pay up to Twenty Five Thousand Dollars ($25,000) toward appropriate executive-level outplacement or job search assistance for Executive; and (H) provide continuation coverage
of the Executive and Executive's spouse and dependents under the Employer's Welfare Benefits, pursuant to COBRA as applicable, for a period of 36 months after the date of termination or until
the Executive is covered by comparable Welfare Benefits medical plan, whichever occurs first, and if such continued coverage is not allowed by law or the Employer's Welfare Benefits plans, the
Executive shall be entitled to the cash equivalent of premiums for such benefits not allowed and the federal income tax consequences of such payments. Except as provided in this Section, Employer
shall have no further liability hereunder (subject, however, to the provisions of Section 5(a) and (d)). 

        (d)  For
purposes of this Agreement, "Good Reason" shall mean: 

        (i)    the
assignment to the Executive of any duties inconsistent in any material respect with the Executive's position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated by Section 3 of this Agreement, or any 

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other action by Employer which results in a material diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action
not taken in bad faith and which is remedied by Employer promptly after receipt of notice thereof given by the Executive; 

        (ii)  any
failure by Employer to comply with any of the pay and benefits or other material provisions of Sections 4 and 5 of this Agreement, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is remedied by Employer promptly after receipt of notice thereof given by the Executive; 

        (iii)  the
Employer requires Executive to relocate to an office that is greater than thirty-five (35) miles from the Executive's office as of the date of
this Agreement, provided that the new office is more than thirty-five (35) miles from the Executive's home, except for required travel on Company's business to an extent
substantially consistent with the Executive's present business obligations; or 

        (iv)  in
the event that (A) a Change in Control (as defined in Section 12 hereof) in Employer shall occur during the Term and (B) either in anticipation
of the Change in Control or within two (2) years after the date of the Change in Control, Executive's employment with Employer is terminated by Employer without Cause, as defined in
Section 9(b) (and other than pursuant to Section 7 by reason of the Executive's death or Section 8 by reason of the Executive's disability), or the Executive terminates the Term
and his employment for Good Reason pursuant to Sections 11(d)(i), 11(d)(ii) or 11(d)(iii). 

        12.  Change in Control. 

        (a)  For
purposes of this Agreement, the term "Change in Control" shall mean: 

        (i)    Approval
by the stockholders of the Company of (x) a reorganization, merger, consolidation or other form of corporate transaction or series of transactions, in
each case, with respect to which persons who were the stockholders of Company immediately prior to such reorganization, merger or consolidation or other transaction do not, immediately thereafter, own
more than 50% of the combined voting power entitled to vote generally in the election of directors of the reorganized, merged or consolidated company's then outstanding voting securities, or
(y) a liquidation or dissolution of Employer or (z) the sale of all or substantially all of the assets of Employer (unless such reorganization, merger, consolidation or other corporate
transaction, liquidation, dissolution or sale is subsequently abandoned); or 

        (ii)  Individuals
who constitute the Board of Directors of the Company (the "Incumbent Board") cease for any reason to constitute at least a majority of the Incumbent Board,
provided that any person becoming a director subsequent to the date hereof, whose election, or nomination for election by stockholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to
the election of the directors, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Securities Exchange Act) shall be, for purposes of this
Agreement, considered as though such person were a member of the Incumbent Board; or 

        (iii)  The
acquisition (other than from Employer) by any person, entity or "group," within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
(excluding, for this purpose, Employer or its subsidiaries, or any executive benefit plan of Employer or its subsidiaries) which acquires beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Securities Exchange Act), of 20% or more of either the then 

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outstanding shares of the Company or the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the applicable entity. 

        (b)  The
payments made pursuant to the provisions of Section 11 as a result of a termination by the Executive for the Good Reason described in Section 11(d)
above shall be in lieu of any and all compensation due to Executive for the years that would otherwise be remaining in the Term. Upon receipt of said lump sum payment, this Agreement and all rights
and duties of the parties shall be terminated, except as follows: Sections 6 and 13 through 23 shall remain in effect by their terms. In consideration for such lump sum payment and for the right to
terminate under the conditions set forth above, Executive agrees to consult with Employer (or its successors), and its officers if requested to do so for a period of at least one (1) year from
the date of such termination. However, Executive shall be required to devote only such part of time to such services as Executive believes reasonable in Executive's sole discretion, including not
interfering with Executive's employment, and the time and
date such services are offered shall be determined by Executive so long as that time and date is within a reasonable period of time after the request. It is expressly agreed that the Company's rights
to avail itself of the advice and consultation services of Executive shall at all times be exercised in a reasonable manner, that adequate notice shall be given to Executive in such events, and that
non-compliance with any such request by Executive for good reason, including, but not limited to, ill health or prior commitments, shall not constitute a breach or violation of this
Agreement. Executive agrees that, except for reimbursement of all reasonable expenses incurred by Executive with respect to such consultation and advisory services, payable as such consultation and
advisory services are rendered, Executive shall not be entitled to any further compensation. It is understood that in furnishing any advisory and consulting services provided herein, Executive shall
not be an employee of Employer but shall act in the capacity of independent contractor. 

        13.  Waivers. It is understood that either party may waive the strict performance of any covenant or agreement made herein;
however, any waiver made by a party hereto must be duly made in writing in order to be considered a waiver, and the waiver of one covenant or agreement shall not be considered a waiver of any other
covenant or agreement unless specifically in writing as aforementioned. 

        14.  Savings Provisions. The invalidity, in whole or in part, of any covenant or restriction, or any section, subsection,
sentence, clause, phrase or word, or other provisions of this Agreement, as the same may be amended from time to time shall not affect the validity of the remaining portions thereof. 

        15.  Governing Law. The Agreement shall be construed in accordance with and governed by the laws of the State of California
without giving effect to its choice of law provisions. 

        16.  Notices. If either party desires to give notice to the other in connection with any of the terms and provisions of this
Agreement, said notice must be in writing and shall be deemed given when (a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with written confirmation of
receipt), provided that a copy is mailed by registered mail, return receipt requested, or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service
(receipt requested), in each case addressed to the party for whom it is intended as follows (or such other 

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addresses as either party may designate by notice to the other party and, after the IPO/Spin-off, at the Parent Company's or Company's then principal executive
offices):  

	

If to Employer:	
 	

Michael P. Hoopis

Water Pik Technologies, Inc.

23 Corporate Plaza

Suite 246

Newport Beach, CA 92660
	

If to Executive:	
 	

At the most recent home address of the Executive on the official records of the Employer

        17.  Costs and Attorneys' Fees. In the event any legal action is necessary to enforce or interpret this Agreement, including
but not limited to a suit in equity, an action at law, or by arbitration, the prevailing party shall recover all costs and attorneys' fees, whether settled out of court, arbitrated, or tried (at both
trial and appellate levels). 

        18.  Section 162(m) Limits. If and to the extent that any remuneration payable by Employer to the Executive for any
year would exceed the maximum amount of such remuneration that Employer may deduct for that year by reason of Section 162(m) of the Code, payment of the portion of the remuneration for that
year that would not be so deductible under Section 162(m) shall, in the sole discretion of the Board, be deferred so that it shall become payable at such time or times as the Board reasonably
determines that it would be deductible by Employer under Section 162(m), with interest at the "short-term applicable federal rate" as such term is defined in Section 1274(d)
of the Code. This provision shall not apply to payments due pursuant to Sections 11(c) and (d) as a result of a Change in Control as defined in Section 12. 

        19.  Certain Additional Payments by the Company.

        (a)  In
the event it is determined pursuant to subsection (b) of this Section 19 that any payment, benefit or other event to or for the benefit of Executive
(whether such payment, benefit or other event occurs pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this
Section 19(a)—(d) (each a "Payment" and collectively the "Payments") is subject to the excise tax (the "Excise Tax") imposed by Section 4999 of the Internal Revenue Code of
1986, as amended (the "Code"), and any successor provision or any comparable provision of state or local income tax law (collectively, "Section 4999"), then, within 10 days after such
determination, the Company shall pay to Executive (or to the applicable taxing authority on Executive's behalf) an additional cash payment (hereinafter referred to as the "Gross-Up
Payment") equal to an amount such that after payment by Executive of all taxes imposed or incurred with respect to the Gross-Up Payment (including excise taxes imposed upon the
Gross-Up Payment), Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon such Payment or Payments. This provision is intended to put
Executive in the same position as Executive would have been had no Excise Tax been imposed upon or incurred as a result of any Payment. 

        (b)  The
determination that a Payment is subject to an Excise Tax shall be made in writing by a certified public accounting firm selected by Company ("Company's Accountant").
Such determination shall include the amount of the Gross-Up Payment and detailed computations thereof, including any assumptions used in such computations (the written determination of the
Company's Accountant, hereinafter, the "Company's Determination"). The Company's Determination may be reviewed on behalf of the Executive by a certified public accounting firm selected by the
Executive (the "Executive's Accountant"). The Executive shall notify the Company 

10

 

within 10 business days after receipt of the Company's Determination of any disagreement or dispute therewith, and failure to so notify within that period shall be considered an agreement by the
Executive to accept the proposed payment as provided in subsection (a) above within 10 days from the expiration of such 10 business-day period. In the event of an objection
by the Executive to the Company's Determination, any amount not in dispute shall be paid within 10 days following the 10 business-day period referred to herein, and with respect to
the amount in dispute the Executive's Accountant and the Company's Accountant shall jointly select a third nationally recognized certified public accounting firm to resolve the dispute and the
decision of such third firm shall be final, binding and conclusive upon the Executive and the Company. In such a case, the third accounting firm's findings shall be deemed the binding determination
with respect to the amount in dispute, obligating the Company to make any payment as a result thereof within 10 days following the receipt of such third accounting firm's determination. The
fees for Executive's Accountant shall be paid by the Executive. All other fees and expenses of each of the accounting firms referred to in this Section shall be paid solely by the Company. 

        (c)  If,
after the receipt by the Executive of an amount advanced by the Company pursuant to Section 19 (a), the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall (subject to the Company's complying with the requirements of Section 19 (a) promptly pay to the Company the amount of such refund (together
with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 19 (a), a
determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of
refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall
offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 

        (d)  In
the event that any state or municipality or subdivision thereof shall subject any Payment to any special tax which shall be in addition to the generally applicable
income tax imposed by such state, municipality, or subdivision with respect to receipt of such Payment, the foregoing provisions of this Section 19 shall apply, mutatis mutandis, with respect
to such special tax. 

        20.  No Third Party Beneficiary. Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer
upon or give any person other than Employer, the parties hereto and their respective heirs, personal representatives, legal representatives, successors and assigns, any rights or remedies under or by
reason of this Agreement. 

        21.  Waiver of Jury Trial. ALL PARTIES KNOWINGLY WAIVE THEIR RIGHTS TO REQUEST A TRIAL BY JURY IN ANY LITIGATION IN ANY COURT
OF LAW, TRIBUNAL OR LEGAL PROCEEDING INVOLVING THE PARTIES HERETO OR ANY DISPUTES ARISING OUT OF OR RELATED TO THIS AGREEMENT. 

        22.  Successors.

        (a)  This
Agreement shall inure to the benefit of and be binding upon the Executive and the Executive's assigns, heirs, representatives or estate. 

        (b)  This
Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns. 

        23.  Complete Agreement: This Agreement constitutes the complete agreement of the parties, and supersedes all prior or
contemporaneous agreements and understandings, whether oral, written or implied, regarding the subject matter. Both parties acknowledge that in entering into this Agreement, 

11

 

they have not relied on any promise, assurance, or representation other than those expressly set forth in this Agreement. 

        IN WITNESS WHEREOF, WATER PIK TECHNOLOGIES, INC., by its appropriate officer, signed this Agreement and Executive has signed this
Agreement, as of the day and year first above written. 

	 	 	WATER PIK TECHNOLOGIES, INC.
	

 	
 	

By:	
 	

/s/  MICHAEL P. HOOPIS      
 Michael P. Hoopis

President and Chief Executive Officer
	

 	
 	
EXECUTIVE
	

 	
 	

 	
 	

/s/  RICHARD D. TIPTON      
	 	 	
 Richard D. Tipton

12Exhibit 10.20  

          

  

Water Pik Technologies, Inc.
  2002 Annual Incentive Plan (AIP)  

 

	Content
 
	 	Page
 

	At a Glance	 	3
	 	What is the Annual Incentive Plan?	 	3
	 	Who is Eligible for this Plan?	 	3
	 	How does the Annual Incentive Plan work?	 	3
	

Calculation of the Annual Incentive Plan Award	
 	

3
	 	Target Bonus Percentage	 	3
	 	Performance Goals and the Target Bonus Percentage	 	4
	 	Financial Performance Goals	 	4
	 	Individual Performance Goals	 	4
	 	How the AIP Award is Calculated	 	4
	

How the AIP Award is Calculated for Other Achievement Levels	
 	

5
	 	Maximums and Minimums	 	5
	 	Formulas for Weighting Financial & Individual Performance	 	6
	 	Putting it Together	 	6
	

Additional Guidelines for the Annual Incentive Plan	
 	

9
	 	Discretionary Adjustments	 	9
	 	Some Special Circumstances	 	9
	 	Making Payments	 	 
	

Administration Details	
 	

10

2

Published by Human Resources: October, 2001 

   At a Glance  

What is the Annual Incentive Plan?  

        The Annual Incentive Plan (the "AIP" or the "Plan") provides key managers of Water Pik Technologies, Inc. ("Water Pik") with the opportunity to earn an
incentive award when certain pre-established performance goals are met: 

	•
	at
the total company level,

	•
	at
the segment level, and

	•
	at
the individual level. 

Who is Eligible for This Plan?  

        Generally, key managers who have a significant impact on the total company's operations will be eligible to participate in the Plan. Individuals eligible (the
"Participants") for participation are determined annually, based on recommendations of Water Pik's Chief Executive Officer (the "Chief Executive Officer"), with the approval of the Personnel and
Compensation Committee of its Board of Directors (the "Committee"). 

How Does the Annual Incentive Plan Work?  

        Under the Plan, designated key employees may earn an incentive award equal to a percentage of their base salary, depending on the extent to which
pre-established individual, and total company and/or, segment performance goals have been achieved. 

	•
	For
purposes of the Plan, base salary is generally the Participant's annual base salary rate as of the end of the year, excluding any commission or other
incentive pay. For some special circumstances affecting the amount of base salary used in the Plan, see this plan document.

	•
	A
target bonus percentage is used in calculating the incentive award. It is explained on the next page. Each Participant will be given a target bonus
percentage.

	•
	The
actual bonus percentage is determined by adjusting the target bonus percentage upward or downward based on the extent to which certain financial
performance goals and individual performance goals are achieved.

	•
	The
actual bonus percentage determines the amount of the incentive award for the year subject to discretionary adjustments. See page 6 for other factors that
may affect the actual award.

	•
	Incentive
award payments will generally be distributed in cash after the year-end audit is complete and the Committee has granted its approval. 

Calculation of the Annual Incentive Plan Award  

Target Bonus Percentage  

        The Plan provides an incentive opportunity for Participants calculated as a percentage of each Participant's base salary. Each Participant will be provided with
an initial percentage, referred to as a "target bonus percentage." The target bonus percentage is the percentage of base salary that is generally earned as an award if 100% of the performance goals
are achieved. 

        The
performance goals reflect financial and individual performance and are described below. 

        Target
bonus percentages, performance goals and performance achievements will be communicated to each eligible Participant. The Committee may change the goals and objectives for the Plan
at any time. 

3

 

Performance Goals and the Target Bonus Percentage  

        The Plan for 2002 establishes a financial performance goal based on Net Income ("NI") and Return On Average Capital Employed ("RACE"), and individual performance
goals based on individual performance objectives. RACE is defined as Adjusted NI divided by Average Capital Employed. Net Income is defined as income after tax. 

        Each
performance goal is weighted as a percentage share of the target bonus percentage. For all Participants in the Plan, 80% of the target bonus percentage will be based on the
financial performance; the other 20% of the target bonus percentage will be based upon individual performance. 

        Actual
performance will be measured and compared to the performance goals. The result achieved will be expressed as a percentage of the performance goal. The adjustment formulas are
described further below. 

Financial Performance Goals  

        For 2002, the financial performance goal will be weighted 75% NI and 25% RACE, which represents a total of 80% of the target bonus percentage. NI and RACE goals
will be set at the total company and segment level based on the applicable business plan. How total company and segment are weighted for a given Participant depends upon the Participant's major area
of responsibility at Water Pik and its business segments. For example, some Participants may have 60% of target based on segment financial performance and 20% on total company financial performance.
Others may have 80% of target based on total company performance. 

Individual Performance Goals  

        Each year, managers will establish individual performance goals with Participants. The achievement of individual performance goals will represent 20% of the
target bonus percentage. Individual performance goals can be achieved to a maximum of 100%. 

How the AIP Award is Calculated when 100% of the Performance Goals are Achieved  

        If 100% of all performance goals are achieved, then 100% of the target bonus percentage will generally be used to calculate the Participant's incentive award. 

        For
example, if a Participant's target bonus percentage is 20% and if all goals are achieved at 100%, then the target bonus percentage of 20% is multiplied by 100% to produce an
incentive award equal to 20% of base salary: 

	Goal
 
	 	Percent of

Target
	 	 
	 	Goal

Achievement
	 	 
	 	Target %

Earned

	

	Financial Performance	 	80%	 	X	 	100%	 	=	 	80%
	Individual Performance	 	20%	 	X	 	100%	 	=	 	20%
	 	 	 	 	 	 	 	 	 	 	

	Total Goals	 	 	 	 	 	 	 	=	 	100%

        In
the above example, 100% of the target bonus percentage is earned, and the incentive award will be 20% of the participant's base salary subject to any discretionary adjustments. 

        The
following further defines the financial performance goals. Using the above example of a Participant's target bonus percentage of 20%, and weighting the Participant's financial goals
of 80% at 

4

 

60% segment and 20% total company, the following example provides clarification of the NI and RACE components: 

	Goal
 
	 	Percent of

Target
	 	 
	 	Goal

Achievement
	 	 
	 	Target %

Earned

	

	Financial Performance	 	 	 	 	 	 	 	 	 	 
	 	Segment (60%)	 	 	 	 	 	 	 	 	 	 
	 	 	Net Income (75%)	 	45%	 	X	 	100%	 	=	 	45%
	 	 	RACE (25%)	 	15%	 	X	 	100%	 	=	 	15%
	 	Total Company (20%)	 	 	 	 	 	 	 	 	 	 
	 	 	Net Income (75%)	 	15%	 	X	 	100%	 	=	 	15%
	 	 	RACE (25%)	 	5%	 	X	 	100%	 	=	 	5%
	 	 	
	 	 	 	
	 	 	 	

	

Total Financial Perf.	
 	

80%	
 	

X	
 	

100%	
 	

=	
 	

80%
	

Individual Performance	
 	

20%	
 	

X	
 	

100%	
 	

=	
 	

20%
	 	 	 	 	 	 	 	 	 	 	

	Total Goals	 	 	 	 	 	 	 	=	 	100%

        The
sections below discuss the impact of achieving more or less than 100% of the performance goals and the impact of other potential adjustments. 

How the AIP Award is Calculated for Other Achievement Levels  

        If more or less than 100% of a Participant's financial or individual performance goals are achieved, then the Participant's target bonus percentage will be
adjusted. The following section describes adjustments based on maximum and minimum achievement levels, and the formulas used to weight achievements at all levels. 

Maximums and Minimums  

	•
	Where
more than 100% of financial performance goals are achieved, more than 100% will then be earned for that goal's contribution to the overall achievement.
However, the maximum percentage earned for any goal's share of the target bonus percentage is 200%, and the overall maximum incentive award that an individual can earn under the weighting formula is
200% of the target bonus percentage.

	•
	If
financial goals are achieved at above target performance levels, the over-achievement will enhance the individual performance goal attainment.

	•
	Where
80% of a financial or individual performance goal is achieved, only 50% of that goal's share (80% or 20% as applicable) of the target bonus percentage
will be earned.

	•
	If
less than 80% of the Company's Business Plan Net Income is achieved, no company, segment or personal awards will be paid regardless of the level of
achievement of the financial or individual performance goals. 

5

   Formulas for Weighting Financial and Individual Performance  

        The following formulas will be used to weight the achievement of the financial and individual performance measures under the Plan: 

Formula A  

        If 80% to 100% of a goal is achieved, the Percent of Target Earned for that goal equals the Percentage of Goal Achieved (i.e. Actual Performance divided by
Planned Performance) minus 80% (which is the threshold level of performance) times 2.5, plus 50%. 

        Formula
A Example: 

	 	 	Assumption: Percentage of Goal Achieved	 	= 90%
	 	 	Percent of Target Earned for the Goal	 	= [(90%-80%) × 2.5] + 50%
	 	 	 	 	= [(10% × 2.5)] + 50%
	 	 	 	 	= 25% + 50%
	 	 	 	 	= 75%

Formula B  

        If over 100% of goal is achieved, the Percent of Target Earned for that goal equals the Percentage of Goal Achieved (i.e. Actual Performance divided by Planned
Performance) minus 100% (which is the target level of performance) times 5, plus 100%. In all cases, the maximum Percent of Target Earned of 200% results when 120% of that goal is achieved. 

        Formula
B Examples: 

	 	1.	 	Assumption: Percentage of Goal Achieved	 	= 130%
	 	 	Percent of Target Earned for the Goal	 	= (130%-100%) × 5] + 100%
	 	 	 	 	= [30% × 5] + 100%
	 	 	 	 	= 150% + 100%
	 	 	 	 	= 250%
	

 	
 	

However the maximum target bonus is capped at 200%.
	 	

2.	
 	

Assumption: Percentage of Goal Achieved	
 	

= 110%
	 	 	Percent of Target Earned for that Goal	 	= [(110%-100%) × 5] + 100%
	 	 	 	 	= [10% × 5] + 100%
	 	 	 	 	= 50% + 100%
	 	 	 	 	= 150%

        The
formulas described above are designed to create a greater positive incentive for over-achieving the plan than for under-achieving. As a result of the formulas, actual
performance that exceeds 100% of the goal is weighted more than actual performance that exceeds the 80% threshold levels of performance but does not reach 100% of the goal. 

Putting it Together  

        Here are two examples of how a Participant might earn an incentive award under the plan. 

	1.
	For
the first example, assume that the Participant achieves:

	•
	90%
of financial performance goal for segment and total company for NI and RACE, and

	•
	80%
of individual performance goals.

	•
	Assume
that the Participant's annual salary is $80,000 and that the Participant's target bonus percentage is 20% of base salary. 

        The
first step is to calculate the percent of target earned based upon actual performance. 

6

   
        Formula A above would be used for weighting financial and individual performance goals, because less than 100% of those goals were
achieved. 

	Goal
 
	 	(1)

Percent of

Target
	 	(2)

Goal

Achievement
	 	(3)

Formula

Weighting

Achievement
	 	 
	 	(4)

Target %

of Earned

(1) x (3)

	

	Financial Performance	 	 	 	 	 	 	 	 	 	 
	 	Segment (60%)	 	 	 	 	 	 	 	 	 	 
	 	 	Net Income (75%)	 	45%	 	90%	 	75%	 	 	 	33.8%
	 	 	RACE (25%)	 	15%	 	90%	 	75%	 	 	 	11.3%
	 	Total Company (20%)	 	 	 	 	 	 	 	 	 	 
	 	 	Net Income (75%)	 	15%	 	90%	 	75%	 	 	 	11.3%
	 	 	RACE (25%)	 	5%	 	90%	 	75%	 	 	 	3.8%
	 	 	
	 	
	 	
	 	 	 	

	 	

Total Financial Perf.	
 	

80%	
 	

90%	
 	

75%	
 	

 	
 	

60.0%
	

Individual Performance	
 	

20%	
 	

80%	
 	

50%	
 	

 	
 	

10.0%
	 	 	 	 	 	 	 	 	 	 	

	

Total Goals	
 	

 	
 	

 	
 	

 	
 	

=	
 	

70.0%
	 	 	 	 	 	 	 	 	 	 	

        With
70% of target achieved, the incentive award would be calculated as 70% of the 20% target bonus percentage, or 14%. The incentive payment would, in turn, be the product of 14% of the
Participant's base salary of $80,000, or $11,200. 

7

  

	2.
	For
another example, assume that the same Participant achieves:

	•
	Financial
Performance: Segment NI is 115%, Segment RACE is110%, Total Company NI is 107% and Total Company RACE is 105%, and

	•
	100%
of individual performance goals. 

        Again,
the first step is to calculate the percent of target earned for each goal. Formula B would be used, because the goal achievement
was greater than or equal to 100%. 

	Goal
 
	 	(1)

Percent of

Target
	 	 
	 	(2)

Goal

Achievement
	 	(3)

Formula

Weighting

Achievement
	 	 
	 	(4)

Target %

of Earned

(1) x (3)

	

	Financial Performance	 	 	 	 	 	 	 	 	 	 	 	 
	 	Segment (60%)	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Net Income (75%)	 	45%	 	 	 	115%	 	175%	 	 	 	78.8%
	 	 	RACE (25%)	 	15%	 	 	 	110%	 	150%	 	 	 	22.5%
	 	Total Company (20%)	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Net Income (75%)	 	15%	 	 	 	107%	 	135%	 	 	 	20.3%
	 	 	RACE (25%)	 	5%	 	 	 	105%	 	125%	 	 	 	6.3%
	 	 	
	 	 	 	
	 	
	 	 	 	

	 	Total Financial Perf.	 	80%	 	 	 	112%	*	160%	 	 	 	127.9%
	Individual Performance	 	20%	 	(100%+12%	)=	112%	**	160%	 	 	 	32.0%
	 	 	 	 	 	 	 	 	 	 	 	 	

	Total Goals	 	 	 	 	 	 	 	 	 	=	 	159.9%

        With
all goal achievement greater than the target, the incentive award would be calculated as 159.9% of the 20% target bonus percentage, or 32%. The incentive payment would, in turn, be
the product of 32% of the Participant's base salary of $80,000 or $25,600. 

        *-
Weighted Average. 

        **-
Because the financial performance is >100% of goal achievement, the difference between actual and goal of 12% (112%-100%) is added to the individual performance goal
achievement to arrive at the total individual performance goal achievement. 

	3.
	For
another example, assume that the same Participant achieves:

	•
	Financial
Performance: Segment NI is 115%, Segment RACE is110%, Total Company NI is 107% and Total Company RACE is 105%, and

	•
	75%
of individual performance goals. 

8

 

        Again,
the first step is to calculate the percent of target earned for each goal. Formula B would be used for financial performance,
because over 100% of that goal was achieved. Formula A would be used for individual performance, because less than 100% of that goal was achieved. 

	Goal
 
	 	(1)

Percent of

Target
	 	 
	 	(2)

Goal

Achievement
	 	(3)

Formula

Weighting

Achievement
	 	 
	 	(4)

Target %

of Earned

(1) x (3)

	

	Financial Performance	 	 	 	 	 	 	 	 	 	 	 	 
	 	Segment (60%)	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Net Income (75%)	 	45%	 	 	 	115%	 	175%	 	 	 	78.8%
	 	 	RACE (25%)	 	15%	 	 	 	110%	 	150%	 	 	 	22.5%
	 	Total Company (20%)	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Net Income (75%)	 	15%	 	 	 	107%	 	135%	 	 	 	20.3%
	 	 	RACE (25%)	 	5%	 	 	 	105%	 	125%	 	 	 	6.3%
	 	 	
	 	 	 	
	 	
	 	 	 	

	 	Total Financial Perf.	 	80%	 	 	 	112%	*	160%	 	 	 	127.9%
	Individual Performance	 	20%	 	(75%+12%	)=	87%	**	67.5%	 	 	 	13.5%
	 	 	 	 	 	 	 	 	 	 	 	 	

	Total Goals	 	 	 	 	 	 	 	 	 	=	 	141.4%

        With
financial goal achievement greater than the target and personal goal achievement less than the target, the incentive award would be calculated as 141.4% of the 20% target bonus
percentage, or 28.3%. The incentive payment would, in turn, be the product of 28.3% of the Participant's base salary of $80,000 or $22,624. 

        *-
Weighted Average. 

        *-
Because the financial performance is >100% of goal achievement, the difference between actual and goal of 12% (112%-100%) is added to the individual performance goal
achievement to arrive at the total individual performance goal achievement. 

Additional Guidelines for the Annual Incentive Plan  

        A minimum of 80% of the total company Business Plan Net Income must be achieved for annual incentives to be paid regardless of other factors. 

Discretionary Adjustments  

        The Plan allows for discretionary adjustments of up to +20% or -20% of a Participant's calculated award. However, discretionary adjustments for all
eligible Participants cannot exceed +5% of the aggregate calculated incentive awards and must be approved in advance by the Chief Executive Officer, subject to Committee approval. 

Some Special Circumstances  

        The above formulas generally determine the amount of the incentive award for the year. Other factors that may affect the actual award follow: 

	•
	If
a Participant leaves the company prior to the incentive award payment, due to retirement, death, or disability, an award will be prorated based on the
actual base salary earned during the year in which the Participant left. The incentive award will be paid at the time all other awards are paid under this Plan.

	•
	If
a Participant leaves the company voluntarily or involuntarily for any other reason than retirement, death, or disability, prior to the incentive award
payment, the Participant will not receive an incentive award under this Plan. 

9

 
	•
	Participants
who are hired during the year earn a pro-rated bonus for that year, based on the salary earned during that year.

	•
	If
a Participant received a promotion or demotion during the year where the eligible target percent changed, then the calculation will be
pro-rata for each target percent, ie.: 4 months at 15% and 8 months at 20%.

	•
	The
base salary for Plan purposes is the final base salary at December 31, 2002.

	•
	Making
Payments 

Incentive
awards, less applicable withholding taxes are paid after the year-end audit is complete and the Committee approves the awards. Payment is expected to occur no later than
March 15, 2003. 

Administrative Details  

        This summary relates to the Annual Incentive Plan (AIP) of Water Pik Technologies, Inc. The Plan is administered by the Committee. The Committee has full
authority to: 

	•
	interpret
the Plan,

	•
	designate
eligible Participants and categories of eligible Participants,

	•
	set
the terms and conditions of incentive awards; and

	•
	establish
and modify administrative rules for the Plan. 

        Plan
Participants may obtain additional information about the plan and the Committee from: 

Vice
President, Human Resources

Water Pik Technologies, Inc

23 Corporate Plaza, Suite 246

Newport Beach, Ca 92660

Phone: 949-719-3700

Fax: 949-719-6472 

        The
Plan will remain in effect until terminated by the Committee. The Committee may also amend the plan at its discretion. The Plan is not subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA) and is not "qualified" under Section 401 (a) of the Internal Revenue Code. 

10

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