Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 4.22  

 
 

GUARANTY    
  

        1.    The Guaranty.    For valuable consideration, the undersigned ("Guarantor") hereby unconditionally guarantees and
promises to pay to Banc of America Leasing & Capital, LLC ("Secured Party"), or order, on demand, in lawful money of the United States, any and all payment and performance obligations, whether
now existing or hereafter arising or matured or contingent, including any swap, forward or option obligations (the "Obligations")
of                        ("Debtor") to Secured Party under or in respect of
that certain Note and Security Agreement executed by Debtor and Secured Party dated December 21, 2001 (together with all schedules, appendices and other attachments thereto, now existing or
hereafter arising, and any renewals, amendments, or extensions thereof, the "Note and Security Agreement") providing for the financing of equipment or other personal or real property ("Property") by
Secured Party to Debtor. The obligations of Guarantor hereunder are independent of the Obligations and exclusive of and in addition to liability under any other guaranty executed by Guarantor for the
benefit of Secured Party or any company related to Secured Party, and a separate action or actions may be brought and prosecuted against Guarantor whether action is brought against Debtor or whether
Debtor is joined in any such action or actions. 

        2.    Authorization of Renewals, Etc.    Guarantor authorizes Secured Party, without notice or demand and without
affecting its liability hereunder, from time to time to: (a) renew, compromise, extend, accelerate, or otherwise change the time for or amount of any payment, or substitute or exchange
Property, or otherwise change the terms of the Note and Security Agreement or the Obligations or any other obligations of Debtor to Secured Party ("Other Obligations"); (b) receive and hold
security for the payment of this Guaranty or the Obligations or any Other Obligations, and exchange, enforce, waive, release, fail to perfect, sell, or otherwise dispose of, any such security;
(c) apply such security and direct the order or manner of sale thereof as Secured Party in its discretion may determine; and (d) release or substitute any one or more of any endorsers
or guarantors of the Obligations. 

        3.    Waiver of Certain Rights.    Guarantor waives any right to require Secured Party to: (a) proceed against
Debtor; (b) proceed against or exhaust any security for the Obligations or any other Obligations, or repossess, dispossess or remarket Property, or otherwise mitigate damages; or (c) 
exercise or pursue any other right or remedy in Secured Party's power whatsoever. 

        4.    Waiver of Certain Defenses.    Guarantor waives any defense arising by reason of any disability or other defense
of Debtor, or the cessation from any cause whatsoever of the liability of Debtor, or any claim that Guarantor's obligations exceed or are more burdensome than those of Debtor, including any of the
foregoing arising by virtue of any provision of the U.S. Bankruptcy Code (Title 11, U.S. Code) (the "Bankruptcy Code"). 

        5.    Waiver of Subrogation and Other Rights and Defenses.    (a) Until the Obligations and any Other Obligations are
paid in full, Guarantor waives (i) any right of subrogation, reimbursement, indemnification and contribution (contractual, statutory, or otherwise), including any claim or right of subrogation
under the Bankruptcy Code, arising from the existence or performance of this Guaranty, (ii) any right to enforce any remedy Secured Party now has or may hereafter have against Debtor and
(iii) any benefit of, and any right to participate in, any security now or hereafter held by Secured Party. 

        (b)  Guarantor
understands and acknowledges that if Secured Party forecloses, either by judicial foreclosure or by exercise of power of sale, any deed of trust securing the
Obligations, that foreclosure could impair or destroy any ability Guarantor may have to seek reimbursement, contribution, or indemnification from Debtor or others based on any right Guarantor may have
of subrogation, reimbursement, contribution, or indemnification for any amounts paid by Guarantor under this Guaranty. Guarantor further understands and acknowledges that in the absence of this
paragraph, such 

1

 

potential impairment or destruction of Guarantor's rights, if any, may entitle Guarantor to assert a defense to this Guaranty based on Section 580d of the California Code of Civil Procedure
("CCP") as interpreted in Union Bank v. Gradsky, 265 Cal. App. 2d. 40 (1968). By executing this Guaranty, Guarantor freely, irrevocably, and
unconditionally: (i) waives and relinquishes that defense and agrees that Guarantor will be fully liable under this Guaranty even though Secured Party may foreclose, either by judicial
foreclosure or by exercise of power of sale, any deed of trust securing the Obligations; (ii) agrees that Guarantor will not assert that defense in any action or proceeding Secured Party may
commence to enforce this Guaranty; (iii) acknowledges and agrees that the rights and defenses waived by Guarantor in this Guaranty include any right or defense Guarantor may have or be entitled
to assert based upon or arising out of any one or more of CCP §§ 580a, 580b, 580d, or 726 or Section 2848 of the California Civil Code ("CC") and
(iv) acknowledges and agrees that Secured Party is relying on this waiver in creating the Obligations, and that this waiver is a material part of the consideration therefor. 

        (c)  Guarantor
waives any rights and defenses that are or may become available to Guarantor under CC §§2787 to 2855, inclusive. Guarantor waives the
benefit of any statute of limitations affecting its liability hereunder. 

        6.    Waiver of Presentments, Etc.    Guarantor waives all presentments, demands for performance, notices of
nonperformance, protests, notices of protest, notices of dishonor, and notices of acceptance of this Guaranty and of the existence, creation, or incurring of new or additional Obligations or any Other
Obligations. 

        7.    Information Relating to Debtor.    Guarantor acknowledges and agrees that it has sole responsibility for
obtaining from Debtor such information concerning Debtor's financial condition or business operations or the Property as Guarantor may require, and that Secured Party has no duty at any time to
disclose to Guarantor any information relating to the business operations or financial condition of Debtor or the Property. 

        8.    Subordination.    Any obligations of Debtor to Guarantor, now or hereafter existing, including any obligations
to Guarantor as subrogee of Secured Party or resulting from Guarantor's performance under this Guaranty, are hereby subordinated to the Obligations and any Other Obligations. Such obligations of
Debtor to Guarantor if Secured Party so requests shall be enforced and performance received by Guarantor as trustee for Secured Party, and the proceeds thereof shall be paid over to Secured Party on
account of the Obligations and all Other Obligations, but without reducing or affecting in any manner the liability of Guarantor under the other provisions of this Guaranty. 

        9.    Debtor's Authorization.    Where Debtor is a corporation, partnership, or limited liability company, it is not
necessary for Secured Party to inquire into the powers of Debtor or of the officers, directors, partners, members, managers, or agents acting or purporting to act on its behalf, and any Obligations
made or created in reliance upon the professed exercise of such powers shall be guaranteed hereunder. 

        10.    Assignments.    Secured Party may, without notice to Guarantor and without affecting Guarantor's obligations
hereunder, sell, assign, grant participations in, or otherwise transfer to any other person, firm, or corporation the Note and Security Agreement, the Property, the Obligations and this Guaranty, in
whole or in part. Guarantor agrees that Secured Party may disclose to any such assignee or purchaser, or any prospective assignee or purchaser, of all or part of the Note and Security Agreement or the
Obligations any information in Secured Party's possession concerning Guarantor, this Guaranty and any security for this Guaranty. 

        11.    Reinstatement of Guaranty.    If any payment or transfer of any interest in property by Debtor to Secured Party
is rescinded or must be returned by Secured Party to Debtor, (a) this Guaranty shall be reinstated with respect to any such payment or transfer, even if this Guaranty was previously 

2

 

returned or canceled, and (b) Guarantor shall remain fully liable with respect to any such amount as if such amount had not been paid by Debtor. 

        12.    Costs and Expenses.    Guarantor agrees to pay all reasonable attorneys' fees, including allocated costs of
Secured Party's internal counsel, and all other costs and expenses Secured Party may incur (a) in the enforcement of this Guaranty or (b) in the preservation, protection, or enforcement
of any rights of Secured Party in any case commenced by or against Guarantor under the Bankruptcy Code or any similar statute. 

        13.    Governing Law.    This Guaranty shall be governed by and construed under the laws of California, to the
jurisdiction of which, and of the Federal courts in California, Guarantor hereby submits. 

        14.    Interpretation.    No provision or waiver in this Guaranty shall be construed as limiting the generality of any
other waiver in this Guaranty. The term "including" is not limiting and means "including without limitation". Section headings are for convenience of reference only and do not affect the
interpretation of this Guaranty. The invalidity of any portion of this Guaranty shall not affect the remaining provisions. Where more than one Guarantor executes this Guaranty, all of the provisions
hereof shall apply to each of such persons singly, and the obligations of each such person shall be joint and several. 

        Executed
as of December 21, 2001. 

	Guarantor:	 	 	 
	 	
	 	 
	

/s/  VICTOR C. STREUFERT      
 Victor C. Streufert

Vice President—Finance,

Chief Financial Officer

and Treasurer	
 	

 
	

 	

 	
 	

Address for notices to Guarantor:

Victor C. Streufert

Vice President—Finance, Chief Financial

Officer and Treasurer
 23 Corporate Plaza, Suite 246

Newport Beach, CA 92660

3

 
Schedule to Form of Guaranty
  (Schedule to Exhibit 4.22 to Form 10K filed 3/21/02) 

	Guarantor
 
	 	Debtor(s)
 

	1. Laars, Inc.	 	Water Pik, Inc.
	2. Water Pik, Inc.	 	Laars, Inc. and Jandy Industries, Inc.
	3. Water Pik Technologies, Inc.	 	Laars, Inc. and Jandy Industries, Inc.
	4. Water Pik Technologies, Inc.	 	Water Pik, Inc.

4

QuickLinks

GUARANTYQuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 4.23  

(Multicurrency—Cross Border)  

 
 

ISDA®
  International Swap Dealers Association, Inc.    

 
 

MASTER AGREEMENT    
  

        dated as of December 21, 2001 

BANK
OF AMERICA,
N.A.                                      and  
          , INC. AND            , INC. 

have
entered and/or anticipate entering into one or more transactions (each a "Transaction") that are or will be governed by this Master Agreement, which includes the schedule (the "Schedule"), and
the
documents and other confirming evidence (each a "Confirmation") exchanged between the parties confirming those Transactions. 

        Accordingly,
the parties agree as follows: 

1.    Interpretation

        (a)  Definitions. The terms defined in Section 14 and in the Schedule will have the meanings therein specified for the
purpose of this Master Agreement. 

        (b)  Inconsistency. In the event of any inconsistency between the provisions of the Schedule and the other provisions of this
Master Agreement, the Schedule will prevail. In the event of any inconsistency between the provisions of any Confirmation and this Master Agreement (including the Schedule), such Confirmation will
prevail for the purpose of the relevant Transaction. 

        (c)  Single Agreement. All Transactions are entered into in reliance on the fact that this Master Agreement and all
Confirmations form a single agreement between the parties (collectively referred to as this "Agreement"), and the parties would not otherwise enter into any Transactions. 

2.    Obligations  

        (a)  General Conditions. 

          (i)  Each
party will make each payment or delivery specified in each Confirmation to be made by it, subject to the other provisions of this Agreement 

        (ii)  Payments
under this Agreement will be made on the due date for value on that date in the place of the account specified in the relevant Confirmation or otherwise
pursuant to this Agreement, in freely transferable funds and in the manner customary for payments in the required currency. Where settlement is by delivery (that is, other than by payment), such
delivery will be made for receipt on the due date in the manner customary for the relevant obligation unless otherwise specified in the relevant Confirmation or elsewhere in this Agreement. 

        (iii)  Each
obligation of each party under Section 2(a)(i) is subject to (1) the condition precedent that no Event of Default or Potential Event of
Default with respect to the other party has occurred and is continuing, (2) The condition precedent that no Early Termination Date in respect of the relevant Transaction has occurred or been
effectively designated and (3) each other applicable condition precedent specified in this Agreement. 

1

 

        (b)  Change of Account. Either party may change its account for receiving a payment or delivery by giving notice to the other
party at least five Local Business Days prior to the scheduled date for the payment or delivery to which such change applies unless such other party gives timely notice of a reasonable objection to
such change. 

        (c)  Netting. If on any date amounts would otherwise be payable:- 

          (i)  in
the same currency; and 

        (ii)  in
respect of the same Transaction, 

by
each party to the other, then, on such date, each party's obligation to make payment of any such amount will be automatically satisfied and discharged and, if the aggregate amount that would
otherwise have been payable by one party exceeds the aggregate amount that would otherwise have been payable by the other party, replaced by an obligation upon the party by whom the larger aggregate
amount would have been payable to pay to the other party the excess of the larger aggregate amount over the smaller aggregate amount. 

        The
parties may elect in respect of two or more Transactions that a net amount will be determined in respect of all amounts payable on the same date in the same currency in respect of
such Transactions, regardless of whether such amounts are payable in respect of the same Transaction. The election may be made in the Schedule or a Confirmation by specifying that subparagraph
(ii) above will not apply to the Transactions identified as being subject to the election, together with the starting date (in which case subparagraph (ii) above will not, or will cease
to, apply to such Transactions from such date). This election may be made separately for different groups of Transactions and will apply separately to each pairing of Offices through which the parties
make and receive payments or deliveries. 

        (d)  Deduction or Withholding for Tax. 

          (i)  Gross-Up. All payments under this Agreement will be made without any deduction or withholding for or on
account of any Tax unless such deduction or withholding is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, then in effect. If a party is so
required to deduct or withhold, then that party ("X") will:— 

        (1)  promptly
notify the other party ("Y") of such requirement; 

        (2)  pay
to the relevant authorities the full amount required to be deducted or withheld (including the full amount required to be deducted or withheld from any additional
amount paid by X to Y under this Section 2(d)) promptly upon the earlier of determining that such deduction or withholding is required or receiving notice that such amount has been assessed
against Y; 

        (3)  promptly
forward to Y an official receipt (or a certified copy), or other documentation reasonably acceptable to Y. evidencing such payment to such authorities; and 

        (4)  if
such Tax is an Indemnifiable Tax, pay to Y. in addition to the payment to which Y is otherwise entitled under this Agreement, such additional amount as is necessary
to ensure that the net amount actually received by Y (free and clear of Indemnifiable Taxes, whether assessed against X or Y) will equal the full amount Y would have received had no such
deduction or withholding been required. However, X will not be required to pay any additional amount to Y to the extent that it would not be required to be paid but for:— 

        (A)  the
failure by Y to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d); or 

2

 

        (B)  the
failure of a representation made by Y pursuant to Section 3(f)to be accurate and true unless such failure would not have occurred but for (I) any
action taken by a taxing authority, or brought in a court of competent jurisdiction, on or after the date on which a Transaction is entered into (regardless of whether such action is taken or brought
with respect to a party to this Agreement) or (II) a Change in Tax Law. 

        (ii)  Liability. If:- 

        (1)  X
is required by any applicable law, as modified by the practice of any relevant governmental revenue authority, to make any deduction or withholding in respect of which
X would not be required to pay an additional amount to Y under Section 2(d)(i)(4); 

        (2)  X
does not so deduct or withhold; and 

        (3)  a
liability resulting from such Tax is assessed directly against X, 

then,
except to the extent Y has satisfied or then satisfies the liability resulting from such Tax, Y will promptly pay to X the amount of such liability (including any related liability for interest,
but including any related liability for penalties only if Y has failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)). 

        (e)  Default Interest; Other Amounts. Prior to the occurrence or effective designation of an Early Termination Date in respect
of the relevant Transaction, a party that defaults in the performance of any payment obligation will, to the extent permitted by law and subject to Section 6(c), be required to pay interest
(before as well as after judgment) on the overdue amount to the other party on demand in the same currency as such overdue amount, for the period from (and including) the original due date for payment
to (but excluding) the date of actual payment, at the Default Rate. Such interest will be calculated on the basis of daily compounding and the actual number of days elapsed. If, prior to the
occurrence or effective designation of an Early Termination Date in respect of the relevant Transaction, a party defaults in the performance of any obligation required to be settled by delivery, it
will compensate the other party on demand if and to the extent provided for in the relevant Confirmation or elsewhere in this Agreement. 

3.    Representations  

        Each party represents to the other party (which representations will be deemed to be repeated by each party on each date on which a Transaction is entered into
and, in the case of the representations in Section 3(f), at all times until the termination of this Agreement) that:— 

        (a)  Basic Representations. 

          (i)  Status. It is duly organised and validly existing under the laws of the jurisdiction of its organisation or
incorporation and, if relevant under such laws, in good standing; 

        (ii)  Powers. It has the power to execute this Agreement and any other documentation relating to this Agreement to which it is
a party, to deliver this Agreement and any other documentation relating to this Agreement that it is required by this Agreement to deliver and to perform its obligations under this Agreement and any
obligations it has under any Credit Support Document to which it is a party and has taken all necessary action to authorise such execution, delivery and performance; 

        (iii)  No Violation or Conflict. Such execution, delivery and performance do not violate or conflict with any law applicable
to it, any provision of its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any contractual restriction binding on
or affecting it or any of its assets; 

3

 

        (iv)  Consents. All governmental and other consents that are required to have been obtained by it with respect to this
Agreement or any Credit Support Document to which it is a party have been obtained and are in full force and effect and all conditions of any such consents have been complied with; and 

        (v)  Obligations Binding. Its obligations under this Agreement and any Credit Support Document to which it is a party
constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms (subject to applicable bankruptcy, reorganisation, insolvency, moratorium or similar laws
affecting creditors' rights generally and subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in equity or at
law)). 

        (b)  Absence of Certain Events. No Event of Default or Potential Event of Default or, to its knowledge, Termination Event with
respect to it has occurred and is continuing and no such event or circumstance would occur as a result of its entering into or performing its obligations under this Agreement or any Credit Support
Document to which it is a party. 

        (c)  Absence of Litigation. There is not pending or, to its knowledge, threatened against it or any of its Affiliates any
action, suit or proceeding at law or in equity or before any court, tribunal, governmental body, agency or official or any arbitrator that is likely to affect the legality, validity or enforceability
against it of this Agreement or any Credit Support Document to which it is a party or its ability to perform its obligations under this Agreement or such Credit Support Document. 

        (d)  Accuracy of Specified Information. All applicable information that is furnished in writing by or on behalf of it to the
other party and is identified for the purpose of this Section 3(d) in the Schedule is, as of the date of the information, true, accurate and complete in every material respect. 

        (e)  Payer Tax Representation. Each representation specified in the Schedule as being made by it for the purpose of this
Section 3(e) is accurate and true. 

        (f)    Payee Tax Representations. Each representation specified in the Schedule as being made by it for the purpose of this
Section 3(f) is accurate and true. 

4.    Agreements  

        Each party agrees with the other that, so long as either party has or may have any obligation under this Agreement or under any Credit Support Document to which
it is a party:- 

        (a)  Furnish Specified Information. It will deliver to the other party or, in certain cases under subparagraph
(iii) below, to such government or taxing authority as the other party reasonably directs:- 

          (i)  any
forms, documents or certificates relating to taxation specified in the Schedule or any Confirmation; 

        (ii)  any
other documents specified in the Schedule or any Confirmation; and 

        (iii)  upon
reasonable demand by such other party, any form or document that may be required or reasonably requested in writing in order to allow such other party or its
Credit Support Provider to make a payment under this Agreement or any applicable Credit Support Document without any deduction or withholding for or on account of any Tax or with such deduction or
withholding at a reduced rate (so long as the completion, execution or submission of such form or document would not materially prejudice the legal or commercial position of the party in receipt of
such demand), with any such form or document to be accurate and completed in a manner reasonably satisfactory to such other party and to be executed and to be delivered with any reasonably required
certification, 

4

 

in
each case by the date specified in the Schedule or such Confirmation or, if none is specified, as soon as reasonably practicable. 

        (b)  Maintain Authorisations. It will use all reasonable efforts to maintain in full force and effect all consents of any
governmental or other authority that are required to be obtained by it with respect to this Agreement or any Credit Support Document to which it is a party and will use all reasonable efforts to
obtain any that may become necessary in the future. 

        (c)  Comply with Laws. It will comply in all material respects with all applicable laws and orders to which it may be subject
if failure so to comply would materially impair its ability to perform its obligations under this Agreement or any Credit Support Document to which it is a party. 

        (d)  Tax Agreement. It will give notice of any failure of a representation made by it under Section 3(f) to be accurate
and true promptly upon learning of such failure. 

        (e)  Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp
Tax levied or imposed upon it or in respect of its execution or performance of this Agreement by a jurisdiction in which it is incorporated, organised, managed and controlled, or considered to have
its seat, or in which a branch or office through which it is acting for the purpose of this Agreement is located ("Stamp Tax Jurisdiction") and will indemnify the other party against any Stamp Tax
levied or imposed upon the other party or in respect of the other party's execution or performance of this Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax Jurisdiction with
respect to the other party. 

5.    Events of Default and Termination Events

        (a)  Events of Default. The occurrence at any time with respect to a party or, if applicable, any Credit Support Provider of
such party or any Specified Entity of such party of any of the following events constitutes an event of default (an "Event of Default") with respect to such party:- 

          (i)  Failure to Pay or Deliver. Failure by the party to make, when due, any payment under this Agreement or delivery under
Section 2(a)(i) or 2(e) required to be made by it if such failure is not remedied on or before the third Local Business Day after notice of such failure is given to the party; 

        (ii)  Breach of Agreement. Failure by the party to comply with or perform any agreement or obligation (other than an
obligation to make any payment under this Agreement or delivery under Section 2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or obligation under
Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party in accordance with this Agreement if such failure is not remedied on or before the thirtieth day after
notice of such failure is given to the party; 

        (iii)  Credit Support Default. 

        (1)  Failure
by the party or any Credit Support Provider of such party to comply with or perform any agreement or obligation to be complied with or performed by it in
accordance with any Credit Support Document if such failure is continuing after any applicable grace period has elapsed; 

        (2)  the
expiration or termination of such Credit Support Document or the failing or ceasing of such Credit Support Document to be in full force and effect for the purpose of
this Agreement (in either case other than in accordance with its terms) prior to the satisfaction of all obligations of such party under each Transaction to which such Credit Support Document relates
without the written consent of the other party; or 

        (3)  the
party or such Credit Support Provider disaffirms, disclaims, repudiates or rejects, in whole or in part, or
challenges the validity of, such Credit Support Document; 

5

 

        (iv)  Misrepresentation. A representation (other than a representation under Section 3(e) or (f)) made or repeated or
deemed to have been made or repeated by the party or any Credit Support Provider of such party in this Agreement or any Credit Support Document proves
to have been incorrect or misleading in any material respect when made or repeated or deemed to have been made or repeated; 

        (v)  Default under Specified Transaction. The party, any Credit Support Provider of such party or any applicable Specified
Entity of such party (1) defaults under a Specified Transaction and, after giving effect to any applicable notice requirement or grace period, there occurs a liquidation of, an acceleration of
obligations under, or an early termination of, that Specified Transaction, (2) defaults, after giving effect to any applicable notice requirement or grace period, in making any payment or
delivery due on the last payment, delivery or exchange date of, or any payment on early termination of, a Specified Transaction (or such default continues for at least three Local Business Days if
there is no applicable notice requirement or grace period) or (3) disaffirms, disclaims, repudiates or rejects, in whole or in part, a Specified Transaction (or such action is taken by any
person or entity appointed or empowered to operate it or act on its behalf); 

        (vi)  Cross Default. If "Cross Default" is specified in the Schedule as applying to the party, the occurrence or existence of
(1) a default, event of default or other similar condition or event (however described) in respect of such party, any Credit Support Provider of such party or any applicable Specified Entity of
such party under one or more agreements or instruments relating to Specified Indebtedness of any of them (individually or collectively) in an aggregate amount of not less than the
applicable Threshold Amount (as specified in the Schedule) which has resulted in such Specified Indebtedness becoming, or becoming capable at such time of being declared, due and payable under such
agreements or instruments, before it would otherwise have been due and payable or (2) a default by such party, such Credit Support Provider or such Specified Entity (individually or
collectively) in making one or more payments on the due date thereof in an aggregate amount of not less than the applicable Threshold Amount under such agreements or instruments (after giving effect
to any applicable notice requirement or grace period); 

      (vii)  Bankruptcy. The party, any Credit Support Provider of such party or any applicable Specified Entity of such party:- 

        (1)  is
dissolved (other than pursuant to a consolidation, amalgamation or merger); (2) becomes insolvent or is unable to pay its debts or fails or admits in writing
its inability generally to pay its debts as they become due; (3) makes a general assignment, arrangement or composition with or for the benefit of its creditors; (4) institutes or has
instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a
petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition
(A) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation or (B) is not dismissed,
discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; (5) has a resolution passed for its winding-up, official management
or liquidation (other than pursuant to a consolidation, amalgamation or merger); (6) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator,
receiver, trustee, custodian or other similar official for it or for all or substantially all its assets; (7) has a secured party take possession of all or substantially all its assets or has a
distress, execution, attachment, sequestration or other legal process levied enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such
process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter; (8) causes or is subject to any event with respect to it which, under the applicable
laws of any jurisdiction, has an analogous effect to 

6

 

any of the events specified in clauses (1) to (7) (inclusive); or (9) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of
the foregoing acts; or 

      (viii)  Merger Without Assumption. The party or any Credit Support Provider of such party consolidates or amalgamates with, or
merges with or into, or transfers all or substantially all its assets to, another entity and, at the time of such consolidation, amalgamation, merger or
transfer:- 

        (1)  the
resulting, surviving or transferee entity fails to assume all the obligations of such party or such Credit Support Provider under this Agreement or any Credit
Support Document to which it or its predecessor was a party by operation of law or pursuant to an agreement reasonably satisfactory to the other party to this Agreement; or 

        (2)  the
benefits of any Credit Support Document fail to extend (without the consent of the other party) to the performance by such resulting, surviving or transferee entity
of its obligations under this Agreement. 

        (b)  Termination Events. The occurrence at any time with respect to a party or, if applicable, any Credit Support Provider of
such party or any Specified Entity of such party of any event specified below constitutes an Illegality if the event is specified in (i) below, a Tax Event if the event is specified in
(ii) below or a Tax Event Upon Merger if the event is specified in (iii) below, and, if specified to be applicable, a Credit Event Upon Merger if the event is specified pursuant to
(iv) below or an Additional Termination Event if the event is specified pursuant to (v) below:- 

          (i)  Illegality. Due to the adoption of, or any change in, any applicable law after the date on which a Transaction is
entered into, or due to the promulgation of, or any change in, the interpretation by any court tribunal or regulatory authority with competent jurisdiction of any applicable law after such date, it
becomes unlawful (other than as a result of a breach by the party of Section 4(b)) for such party (which will be the Affected Party):- 

        (1)  to
perform any absolute or contingent obligation to make a payment or delivery or to receive a payment or delivery in respect of such Transaction or to comply with any
other material provision of this Agreement relating to such Transaction; or 

        (2)  to
perform, or for any Credit Support Provider of such party to perform, any contingent or other obligation which the party (or such Credit Support Provider) has under
any Credit Support Document relating to such Transaction; 

        (ii)  Tax Event. Due to (x) any action taken by a taxing authority, or brought in a court of competent jurisdiction, on
or after the date on which a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or (y) a Change in Tax Law, the party
(which will be the Affected Party) will, or there is a substantial likelihood that it will, on the next succeeding Scheduled Payment Date (1) be required to pay to the other party an additional
amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an
amount is required to be deducted or withheld for or on account of a Tax (except in respect of interest under Section 2(e), 6(d)(ii) 6(e)) and no additional amount is required to be paid
in respect of such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B)); 

        (iii)  Tax Event Upon Merger. The party (the "Burdened Party") on the next succeeding Scheduled Payment Date will either
(1) be required to pay an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e))
or (2) receive a payment from which an amount has been deducted or withheld for or on account of any Indemnifiable Tax in respect of which the other party is not required to 

7

 

pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a party consolidating or amalgamating with, or merging with or into, or
transferring all or substantially all its assets to, another entity (which will be the Affected Party) where such action does not constitute an event described in Section 5(a)(viii); 

        (iv)  Credit Event Upon Merger. If "Credit Event Upon Merger" is specified in the Schedule as applying to the party, such
party ("X"), any Credit Support Provider of X or any applicable Specified Entity of X consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to,
another entity and such action does not constitute an event described in Section 5(a)(viii) but the creditworthiness of the resulting, surviving or transferee entity is materially weaker
than that of X, such Credit Support Provider or such Specified Entity, as the case may be, immediately prior to such action (and, in such event, X or its successor or transferee, as appropriate, will
be the Affected Party); or 

        (v)  Additional Termination Event. If any "Additional Termination Event" is specified in the Schedule or any Confirmation as
applying, the occurrence of such event (and, in such event, the Affected Party or Affected Parties shall be as specified for such Additional Termination Event in the Schedule or such Confirmation). 

        (c)  Event of Default and Illegality. If an event or circumstance which would otherwise constitute or give rise to an Event of
Default also constitutes an Illegality, it will be treated as an Illegality and will not constitute an Event of Default. 

6.    Early Termination

        (a)  Right to Terminate Following Event of Default. If at any time an Event of Default with respect to a party (the
"Defaulting Party") has occurred and is then continuing, the other party (the "Non-defaulting Party") may, by not more than 20 days notice to the Defaulting Party specifying the
relevant Event of Default, designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of all outstanding Transactions. If, however, "Automatic Early
Termination" is specified in the Schedule as applying to a party, then an Early Termination Date in respect of all outstanding Transactions will occur immediately upon the occurrence with respect to
such party of an Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time immediately preceding the institution of
the relevant proceeding or the presentation of the relevant petition upon the occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent
analogous thereto, (8). 

        (b)  Right to Terminate Following Termination Event. 

          (i)  Notice. If a Termination Event occurs, an Affected Party will, promptly upon becoming aware of it, notify the other
party, specifying the nature of that Termination Event and each Affected Transaction and will also give such other information about that Termination Event as the other party may reasonably require. 

        (ii)  Transfer to Avoid Termination Event. If either an Illegality under Section 5(b)(i)(1) or a Tax Event occurs and
there is only one Affected Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the Affected Party, the Affected Party will, as a condition to its right to designate an Early
Termination Date under Section 6(b)(iv), use all reasonable efforts (which will not require such party to incur a loss, excluding immaterial, incidental expenses) to transfer within
20 days after it gives notice under Section 6(b)(i) all its rights and obligations under this Agreement in respect of the Affected Transactions to another of its Offices or
Affiliates so that such Termination Event ceases to exist. 

8

 

If
the Affected Party is not able to make such a transfer it will give notice to the other party to that effect within such 20 day period, whereupon the other party may effect such a transfer
within 30 days after the notice is given under Section 6(b)(i). 

Any
such transfer by a party under this Section 6(b)(ii) will be subject to and conditional upon the prior written consent of the other party, which consent will not be withheld if such
other party's policies in effect at such time would permit it to enter into transactions with the transferee on the terms proposed. 

        (iii)  Two Affected Parties. If an Illegality under section 5(b)(i)(1) or a Tax Event occurs and there are two Affected
Parties, each party will use all reasonable efforts to reach agreement within 30 days after notice thereof is given under Section 6(b)(i) on action to avoid that Termination
Event. 

        (iv)  Right to Terminate. If:— 

        (1)  a
transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as the case may be, has not been effected with respect to all Affected
Transactions within 30 days after an Affected Party gives notice under Section 6(b)(i); or 

        (2)  an
Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened
Party is not the Affected Party, 

either
party in the case of an Illegality, the Burdened Party in the case of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event or an Additional Termination Event if there is more
than one Affected Party, or the party which is not the Affected Party in the case of a Credit Event Upon Merger or an Additional Termination Event if there is only one Affected Party may, by not more
than 20 days notice to the other party and provided that the relevant Termination Event is then continuing, designate a day not earlier than the day such notice is effective as an Early
Termination Date in respect of all Affected Transactions. 

        (c)  Effect of Designation. 

          (i)  If
notice designating an Early Termination Date is given under Section 6(a) or (b), the Early Termination Date will occur on the date so designated, whether or
not the relevant Event of Default or Termination Event is then continuing. 

        (ii)  Upon
the occurrence or effective designation of an Early Termination Date, no further payments or deliveries under Section 2(a)(i) or 2(e) in respect of
the Terminated Transactions will be required to be made, but without prejudice to the other provisions of this Agreement. The amount, if any, payable in respect of an Early Termination Date shall be
determined pursuant to Section 6(e). 

        (d)  Calculations. 

          (i)  Statement. On or as soon as reasonably practicable following the occurrence of an Early Termination Date, each party
will make the calculations on its part, if any, contemplated by Section 6(e) and will provide to the other party a statement (1) showing, in reasonable detail, such calculations
(including all relevant quotations and specifying any amount payable under Section 6(e)) and (2) giving details of the relevant account to which any amount payable to it is to be paid.
In the absence of written confirmation from the source of a quotation obtained in determining a Market Quotation, the records of the party obtaining such quotation will be conclusive evidence of the
existence and accuracy of such quotation. 

        (ii)  Payment Date. An amount calculated as being due in respect of any Early Termination Date under Section 6(e) will
be payable on the day that notice of the amount payable is effective 

9

 

(in the case of an Early Termination Date which is designated or occurs as a result of an Event of Default) and on the day which is two Local Business Days after the day on which notice of the amount
payable is effective (in the case of an Early Termination Date which is designated as a result of a Termination Event). Such amount will be paid together with (to the extent permitted under applicable
law) interest thereon (before as well as after judgment) in the Termination Currency, from (and including) the relevant Early Termination Date to (but excluding) the date such amount is paid, at the
Applicable Rate. Such interest will be calculated on the basis of daily compounding and the actual number of days elapsed. 

        (e)  Payments on Early Termination. If an Early Termination Date occurs, the following provisions shall apply based on the
parties' election in the Schedule of a payment measure, either "Market Quotation" or "Loss", and a payment method, either the "First Method" or the "Second Method". If the parties fail to designate a
payment measure or payment method in the Schedule, it will be deemed that "Market Quotation" or the "Second Method", as the case may be, shall apply. The amount, if any, payable in respect of an Early
Termination Date and determined pursuant to this Section will be subject to any Set-off. 

          (i)  Events of Default. If the Early Termination Date results from an Event of Default:- 

        (1)  First Method and Market Quotation. If the First Method and Market Quotation apply, the Defaulting Party will pay to the
Non-defaulting Party the excess, if a positive number, of (A) the sum of the Settlement Amount (determined by the Non-defaulting Party) in respect of the Terminated
Transactions and the Termination Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting Party over (B) the Termination Currency Equivalent of the Unpaid Amounts owing
to the Defaulting Party. 

        (2)  First Method and Loss. If the First Method and Loss apply, the Defaulting Party will pay to the
Non-defaulting Party, if a positive number, the Non-defaulting Party's Loss in respect of this Agreement. 

        (3)  Second Method and Market Quotation. 1f the Second Method and Market Quotation apply, an amount will be payable equal to
(A) the sum of the Settlement Amount (determined by the Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency Equivalent of the Unpaid Amounts
owing to the Non-defaulting Party less (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If that amount is a positive number, the
Defaulting Party will pay it to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay the absolute value of that amount to the Defaulting
Party. 

        (4)  Second Method and Loss. If the Second Method and Loss apply, an amount will be payable equal to the
Non-defaulting Party's Loss in respect of this Agreement. If that amount is a positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a negative
number, the Non-defaulting Party will pay the absolute value of that amount to the Defaulting Party. 

        (ii)  Termination Events. If the Early Termination Date results from a Termination Event:- 

        (1)  One Affected Party. If there is one Affected Party, the amount payable will be determined in accordance with
Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4). if Loss applies, except that, in either case, references to the Defaulting Party and to the
Non-defaulting Party will be deemed to be references to the Affected Party and the party which is not the Affected Party, respectively, and, if Loss applies and fewer than all the
Transactions are being terminated, Loss shall be calculated in respect of all Terminated Transactions. 

10

 

        (2)  Two Affected Parties. If there are two Affected Parties:- 

        (A)  if
Market Quotation applies, each party will determine a Settlement Amount in respect of the Terminated Transactions, and an amount will be payable equal to
(I) the sum of (a) one-half of the difference between the Settlement Amount of the party with the higher Settlement Amount ("X") and the Settlement Amount of the party with
the lower Settlement Amount ("Y") and (b) the Termination Currency Equivalent of the Unpaid Amounts owing to X less (II) the Termination Currency Equivalent of the Unpaid Amounts owing
to Y; and 

        (B)  if
Loss applies, each party will determine its Loss in respect of this Agreement (or, if fewer than all the Transactions are being terminated, in respect of all
Terminated Transactions) and an amount will be payable equal to one-half of the difference between the Loss of the party with the higher Loss ("X") and the Loss of the party with the lower
Loss ("Y"). 

If
the amount payable is a positive number, Y will pay it to X; if it is a negative number, X will pay the absolute value of that amount to Y. 

        (iii)  Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs because "Automatic Early
Termination" applies in respect of a party, the amount determined under this Section 6(e) will be subject to such adjustments as are appropriate and permitted by law to reflect any payments or
deliveries made by one party to the other under this Agreement (and retained by such other party) during the period from the relevant Early Termination Date to the date for payment determined under
Section 6(d)(ii). 

        (iv)  Pre-Estimate. The parties agree that if Market Quotation applies an amount recoverable under this
Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount is payable for the loss of bargain and the loss of protection against future risks and except as
otherwise provided in this Agreement neither party will be entitled to recover any additional damages as a consequence of such losses. 

7.    Transfer  

        Subject to Section 6(b)(ii), neither this Agreement nor any interest or obligation in or under this Agreement may be transferred (whether by way of
security or otherwise) by either party without the prior written consent of the other party, except that:- 

        (a)  a
party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation with, or merger with or into, or transfer of all or substantially all its
assets to, another entity (but without prejudice to any other right or remedy under this Agreement); and 

        (b)  a
party may make such a transfer of all or any part of its interest in any amount payable to it from a Defaulting Party under Section 6(e). 

        Any
purported transfer that is not in compliance with this Section will be void. 

11

   8.    Contractual Currency  

        (a)  Payment in the Contractual Currency.    Each payment under this Agreement will be made in the relevant currency
specified in this Agreement for that payment (the "Contractual Currency"). To the extent permitted by applicable law, any obligation to make payments under this Agreement in the Contractual Currency
will not be discharged or satisfied by any tender in any currency other than the Contractual Currency, except to the extent such tender results in the actual receipt by the party to which payment is
owed, acting in a reasonable manner and in good faith in converting the currency so tendered into the Contractual Currency, of the full amount in the Contractual Currency of all amounts payable in
respect of this Agreement. If for any reason the amount in the Contractual Currency so received falls short of the amount in the Contractual Currency payable in respect of this Agreement, the party
required to make the payment will, to the extent permitted by applicable law, immediately pay such additional amount in the Contractual Currency as may be necessary to compensate for the shortfall. If
for any reason the amount in the Contractual Currency so received exceeds the amount in the Contractual Currency payable in respect of this Agreement, the party receiving the payment will refund
promptly the amount of such excess. 

        (b)  Judgments.    To the extent permitted by applicable law, if any judgment or order expressed in a currency other
than the Contractual Currency is rendered (i) for the payment of any amount owing in respect of this Agreement, (ii) for the payment of any amount relating to any early termination in
respect of this Agreement or (iii) in respect of a judgment or order of another court for the payment of any amount described in (i) or (ii) above, the party seeking recovery,
after recovery in full of the aggregate amount to which such party is entitled pursuant to the judgment or order, will be entitled to receive immediately from the other party the amount of any
shortfall of the Contractual Currency received by such party as a consequence of sums paid in such other currency and will refund promptly to the other party any excess of the Contractual Currency
received by such party as a consequence of sums paid in such other currency if such shortfall or such excess arises or results from any variation between the rate of exchange at which the Contractual
Currency is converted into the currency of the judgment or order for the purposes of such judgment or order and the rate of exchange at which such party is able, acting in a reasonable manner and in
good faith in converting the currency received into the Contractual Currency, to purchase the Contractual Currency with the amount of the currency of the judgment or order actually received by such
party. The term "rate of exchange" includes, without limitation, any premiums and costs of exchange payable in connection with the purchase of or conversion into the Contractual Currency. 

        (c)  Separate Indemnities.    To the extent permitted by applicable law, these indemnities constitute separate and
independent obligations from the other obligations in this Agreement, will be enforceable as separate and independent causes of action, will apply notwithstanding any indulgence granted by the party
to which any payment is owed and will not be affected by judgment being obtained or claim or proof being made for any other sums payable in respect of this Agreement. 

        (d)  Evidence of Loss.    For the purpose of this Section 8, it will be sufficient for a party to demonstrate
that it would have suffered a loss had an actual exchange or purchase been made. 

9.    Miscellaneous  

        (a)  Entire Agreement.    This Agreement constitutes the entire agreement and understanding of the parties with
respect to its subject matter and supersedes all oral communication and prior writings with respect thereto. 

        (b)  Amendments.    No amendment, modification or waiver in respect of this Agreement will be effective unless in
writing (including a writing evidenced by a facsimile transmission) and executed by each of the parties or confirmed by an exchange of telexes or electronic messages on an electronic messaging system. 

12

 

        (c)  Survival of Obligations.    Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the
parties under this Agreement will survive the termination of any Transaction. 

        (d)  Remedies Cumulative.    Except as provided in this Agreement, the rights, powers, remedies and privileges
provided in this Agreement are cumulative and not exclusive of any rights, powers, remedies and privileges provided by law. 

        (e)  Counterparts and Confirmations.

          (i)  This
Agreement (and each amendment, modification and waiver in respect of it) may be executed and delivered in counterparts (including by facsimile transmission), each
of which will be deemed an original. 

        (ii)  The
parties intend that they are legally bound by the terms of each Transaction from the moment they agree to those terms (whether orally or otherwise). A Confirmation
shall be entered into as soon as practicable and may be executed and delivered in counterparts (including by facsimile transmission) or be created by an exchange of telexes or by an exchange of
electronic messages on an electronic messaging system, which in each case will be sufficient for all purposes to evidence a binding supplement to this Agreement. The parties will specify therein or
through another effective means that any such counterpart, telex or electronic message constitutes a Confirmation. 

        (f)    No Waiver of Rights.    A failure or delay in exercising any right, power or privilege in respect of this
Agreement will not be presumed to operate as a waiver, and a single or partial exercise of any right, power or privilege will not be presumed to preclude any subsequent or further exercise, of that
right, power or privilege or the exercise of any other right, power or privilege. 

        (g)  Headings.    The headings used in this Agreement are for convenience of reference only and are not to affect
the construction of or to be taken into consideration in interpreting this Agreement. 

10.  Offices; Multibranch Parties

        (a)  If
Section 10(a) is specified in the Schedule as applying, each party that enters into a Transaction through an Office other than its head or home office
represents to the other party that, notwithstanding the place of booking office or jurisdiction of incorporation or organisation of such party, the obligations of such party are the same as if it had
entered into the Transaction through its head or home office. This representation will be deemed to be repeated by such party on each date on which a Transaction is entered into. 

        (b)  Neither
party may change the Office through which it makes and receives payments or deliveries for the purpose of a Transaction without the prior written consent of the
other party. 

        (c)  If
a party is specified as a Multibranch Party in the Schedule, such Multibranch Party may make and receive payments or deliveries under any Transaction through any
Office listed in the Schedule, and the Office through which it makes and receives payments or deliveries with respect to a Transaction will be specified in the relevant Confirmation. 

11.  Expenses  

        A Defaulting Party will, on demand, indemnify and hold harmless the other party for and against all reasonable out-of-pocket expenses,
including legal fees and Stamp Tax, incurred by such other party by reason of the enforcement and protection of its rights under this Agreement or any Credit Support Document to which the Defaulting
Party is a party or by reason of the early termination of any Transaction, including, but not limited to, costs of collection. 

13

 

12.  Notices  

        (a)  Effectiveness.    Any notice or other communication in respect of this Agreement may be given in any manner set
forth below (except that a notice or other communication under Section 5 or 6 may not be given by facsimile transmission or electronic messaging system) to the address or number or in
accordance with the electronic messaging system details provided (see the Schedule) and will be deemed effective as indicated:— 

          (i)  if
in writing and delivered in person or by courier, on the date it is delivered; 

        (ii)  if
sent by telex, on the date the recipient's answerback is received; 

        (iii)  if
sent by facsimile transmission, on the date that transmission is received by a responsible employee of the recipient in legible form (it being agreed that the
burden of proving receipt will be on the sender and will not be met by a transmission report generated by the sender's facsimile machine); 

        (iv)  if
sent by certified or registered mail (airmail, if overseas) or the equivalent (return receipt requested), on the date that mail is delivered or its delivery is
attempted; or 

        (v)  if
sent by electronic messaging system, on the date that electronic message is received, 

unless
the date of that delivery (or attempted delivery) or that receipt, as applicable, is not a Local Business Day or that communication is delivered (or attempted) or received, as applicable, after
the
close of business on a Local Business Day, in which case that communication shall be deemed given and effective on the first following day that is a Local Business Day. 

        (b)  Change of Addresses.    Either party may by notice to the other change the address, telex or facsimile number
or electronic messaging system details at which notices or other communications are to be given to it. 

13.  Governing Law and Jurisdiction  

        (a)  Governing Law.    This Agreement will be governed by and construed in accordance with the law specified in the
Schedule. 

        (b)  Jurisdiction.    With respect to any suit, action or proceedings relating to this Agreement ("Proceedings"),
each party irrevocably:— 

          (i)  submits
to the jurisdiction of the English courts, if this Agreement is expressed to be governed by English law, or to the non-exclusive jurisdiction of the
courts of the State of New York and the United States District Court located in the Borough of Manhattan in New York City, if this Agreement is expressed to be governed by the laws of the State of New
York; and 

        (ii)  waives
any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been
brought in an inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction over such party. 

Nothing
in this Agreement precludes either party from bringing Proceedings in any other jurisdiction (outside, if this Agreement is expressed to be governed by English law, the Contracting States, as
defined in Section 1(3) of the Civil Jurisdiction and Judgments Act 1982 or any modification, extension or re-enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other jurisdiction. 

        (c)  Service of Process.    Each party irrevocably appoints the Process Agent (if any) specified opposite its name
in the Schedule to receive, for it and on its behalf, service of process in any Proceedings. If for any reason any party's Process Agent is unable to act as such, such party will 

14

 

promptly notify the other party and within 30 days appoint a substitute process agent acceptable to the other party. The parties irrevocably consent to service of process given in the manner
provided for notices in Section 12. Nothing in this Agreement will affect the right of either party to serve process in any other manner permitted by law. 

        (d)  Waiver of Immunities.    Each party irrevocably waives, to the fullest extent permitted by applicable law, with
respect to itself and its revenues and assets (irrespective of their use or intended use), all immunity on the grounds of sovereignty or other similar grounds from (i) suit,
(ii) jurisdiction of any court, (iii) relief by way of injunction, order for specific performance or for recovery of property, (iv) attachment of its assets (whether before or
after judgment) and (v) execution or enforcement of any judgment to which it or its revenues or assets might otherwise be entitled in any Proceedings in the courts of any jurisdiction and
irrevocably agrees, to the extent permitted by applicable law, that it will not claim any such immunity in any Proceedings. 

14.  Definitions  

        As used in this Agreement:- 

        "Additional Termination Event" has the meaning specified in Section 5(b). 

        "Affected Party" has the meaning specified in Section 5(b). 

        "Affected Transactions" means (a) with respect to any Termination Event consisting of an Illegality, Tax Event or Tax Event Upon
Merger, all Transactions affected by the occurrence of such Termination Event and (b) with respect to any other Termination Event, all Transactions. 

        "Affiliate" means, subject to the Schedule, in relation to any person, any entity controlled, directly or indirectly, by the person, any
entity that controls, directly or indirectly, the person or any entity directly or indirectly under common control with the person. For this purpose, "control" of any entity or person means ownership
of a majority of the voting power of the entity or person. 

        "Applicable Rate" means:- 

        (a)  in
respect of obligations payable or deliverable (or which would have been but for Section 2(a)(iii)) by a Defaulting Party, the Default Rate; 

        (b)  in
respect of an obligation to pay an amount under Section 6(e) of either party from and after the date (determined in accordance with Section 6(d)(ii)) on
which that amount is payable, the Default Rate; 

        (c)  in
respect of all other obligations payable or deliverable (or which would have been but for Section 2(a)(iii)) by a Non-defaulting Party, the
Non-default Rate; and 

        (d)  in
all other cases, the Termination Rate. 

        "Burdened Party" has the meaning specified in Section 5(b). 

        "Change in Tax Law" means the enactment, promulgation, execution or ratification of, or any change in or amendment to, any law (or in the
application or official interpretation of any law) that occurs on or after the date on which the relevant Transaction is entered into. 

        "consent" includes a consent, approval, action, authorisation, exemption, notice, filing, registration or exchange
control consent. 

        "Credit Event Upon Merger" has the meaning specified in Section 5(b). 

        "Credit Support Document" means any agreement or instrument that is specified as such in this Agreement. 

15

 

        "Credit Support Provider" has the meaning specified in the Schedule. 

        "Default Rate" means a rate per annum equal to the cost (without proof or evidence of any actual cost) to the relevant payee (as certified
by it) if it were to fund or of funding the relevant amount plus 1% per annum. 

        "Defaulting Party" has the meaning specified in Section 6(a). 

        "Early Termination Date" means the date determined in accordance with Section 6(a) or 6(b)(iv). 

        "Event of Default" has the meaning specified in Section 5(a) and, if applicable, in the Schedule. 

        "Illegality"    has the meaning specified in Section 5(b). 

        "Indemnifiable Tax" means any Tax other than a Tax that would not be imposed in respect of a payment under this Agreement but for a
present or former connection between the jurisdiction of the government or taxation authority imposing such Tax and the recipient of such payment or a person related to such recipient (including,
without limitation, a connection arising from such recipient or related person being or having been a citizen or resident of such jurisdiction, or being or having been organised, present or engaged in
a trade or business in such jurisdiction, or having or having bad a permanent establishment or fixed place of business in such jurisdiction, but excluding a connection arising solely from such
recipient or related person having executed, delivered, performed its obligations or received a payment under, or enforced, this Agreement or a Credit Support Document). 

        "law" includes any treaty, law, rule or regulation (as modified, in the case of tax matters, by the practice of any relevant governmental
revenue authority) and "lawful" and "unlawful" will be construed accordingly. 

        "Local Business Day" means, subject to the Schedule, a day on which commercial banks are open for business (including dealings in foreign
exchange and foreign currency deposits) (a) in relation to any obligation under Section 2(a)(i), in the place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions contained, or incorporated by reference, in this Agreement, (b) in relation to any other payment, in the place
where the relevant account is located and, if different, in the principal financial centre, if any, of the currency of such payment, (c) in relation to any notice or other communication,
including notice contemplated under Section 5(a)(i), in the city specified in the address for notice provided by the recipient and, in the case of a notice contemplated by Section 2(b),
in the place where the relevant new account is to be located and (d) in relation to Section 5(a)(v)(2), in the relevant locations for performance with respect to such Specified
Transaction. 

        "Loss" means, with respect to this Agreement or one or more Terminated Transactions, as the case may be, and a party, the Termination
Currency Equivalent of an amount that party reasonably determines in good faith to be its total losses and costs (or gain, in which case expressed as a negative number) in connection with this
Agreement or that Terminated Transaction or group of Terminated Transactions, as the case may be, including any loss of bargain, cost of funding or, at the election of such party but without
duplication, loss or cost incurred as a result of its terminating, liquidating, obtaining or reestablishing any hedge or related trading position (or any gain resulting from any of them). Loss
includes losses and costs (or gains) in respect of any payment or delivery required to have been made (assuming satisfaction of each applicable condition precedent) on or before the relevant Early
Termination Date and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies. Loss does not include a party's legal fees and
out-of-pocket expenses referred to under Section 11. A party will determine its Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A party may (but need not) determine its Loss by reference to quotations of relevant rates or prices from one or more
leading dealers in the relevant markets. 

16

 

        "Market Quotation" means, with respect to one or more Terminated Transactions and a party making the determination, an amount determined
on the basis of quotations from Reference Market-makers. Each quotation will be for an amount, if any, that would be paid to such party (expressed as a negative number) or by such party (expressed as
a positive number) in consideration of an agreement between such party (taking into account any existing Credit Support Document with respect to the obligations of such party) and the quoting
Reference Market-maker to enter into a transaction (the "Replacement Transaction") that would have the effect of preserving for such party the economic equivalent of any payment or delivery (whether
the underlying obligation was absolute or contingent and assuming the satisfaction of each applicable condition precedent) by the parties under Section 2(a)(i) in respect of such
Terminated Transaction or group of Terminated Transactions that would, but for the occurrence of the relevant Early Termination Date, have been required after that date. For this purpose, Unpaid
Amounts in respect of the Terminated Transaction or group of Terminated Transactions are to be excluded but, without limitation, any payment or delivery that would, but for the relevant Early
Termination Date, have been required (assuming satisfaction of each applicable condition precedent) after that Early Termination Date is to be included. The Replacement Transaction would be subject to
such documentation as such party and the Reference Market-maker may, in good faith, agree. The party making the determination (or its agent) will request each Reference Market-maker to provide its
quotation to the extent reasonably practicable as of the same day and time without regard to different time zones) on or as soon as reasonably practicable after the relevant Early Termination Date.
The day and time as of which those quotations are to be obtained will be selected in good faith by the party obliged to make a determination under Section 6(e), and, if each party is so
obliged, after consultation with the other. If more than three quotations are provided, the Market Quotation will be the arithmetic mean of the quotations, without regard to the quotations having the
highest and lowest values. If exactly three such quotations are provided, the Market Quotation will be the quotation remaining after disregarding the highest and lowest quotations. For this purpose,
if more than one quotation has the same highest value or lowest value, then one of such quotations shall be disregarded. If fewer than three quotations are provided, it will be deemed that the Market
Quotation in respect of such Terminated Transaction or group of Terminated Transactions cannot be determined. 

        "Non-default Rate" means a rate per annum equal to the cost (without proof or evidence of any actual cost) to the
Non-defaulting Party (as certified by it) if it were to fund the relevant amount. 

        "Non-defaulting Party" has the meaning specified in Section 6(a). 

        "Office" means a branch or office of a party, which may be such party's head or home office. 

        "Potential Event of Default" means any event which, with the giving of notice or the lapse of time or both, would constitute an Event of
Default. 

        "Reference Market-makers" means four leading dealers in the relevant market selected by the party determining a Market Quotation in good
faith (a) from among dealers of the highest credit standing which satisfy all the criteria that such party applies generally at the time in deciding whether to offer or to make an extension of
credit and (b) to the extent practicable, from among such dealers having an office in the same city. 

        "Relevant Jurisdiction" means, with respect to a party, the jurisdictions (a) in which the party is incorporated, organised,
managed and controlled or considered to have its seat, (b) where an Office through which the party is acting for purposes of this Agreement is located, (c) in which the party executes
this Agreement and (d) in relation to any payment, from or through which such payment is made. 

        "Scheduled Payment Date" means a date on which a payment or delivery is to be made under
Section 2(a)(i) with respect to a Transaction. 

17

 

        "Set-off" means set-off, offset, combination of accounts, right of retention or withholding or similar right or
requirement to which the payer of an amount under Section 6 is entitled or subject (whether arising under this Agreement, another contract, applicable law or otherwise) that is exercised by, or
imposed on, such payer. 

        "Settlement Amount" means, with respect to a party and any Early Termination Date, the sum of:- 

        (a)  the
Termination Currency Equivalent of the Market Quotations (whether positive or negative) for each Terminated Transaction or group of Terminated Transactions for which
a Market Quotation is determined; and 

        (b)  such
party's Loss (whether positive or negative and without reference to any Unpaid Amounts) for each Terminated Transaction or group of Terminated Transactions for
which a Market Quotation cannot be determined or would not (in the reasonable belief of the party making the determination) produce a commercially reasonable result. 

        "Specified Entity" has the meaning specified in the Schedule. 

        "Specified Indebtedness" means, subject to the Schedule, any obligation (whether present or future, contingent or otherwise, as principal
or surety or otherwise) in respect of borrowed money. 

        "Specified Transaction" means, subject to the Schedule, (a) any transaction
(including an agreement with respect thereto) now existing or hereafter entered into between one party to this Agreement (or any Credit Support Provider of such party or any applicable Specified
Entity of such party) and the other party to this Agreement (or any Credit Support Provider of such other party or any applicable Specified Entity of such other party) which is a rate swap
transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange
transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any
option with respect to any of these transactions), (b) any combination of these transactions and (c) any other transaction identified as a Specified Transaction in this Agreement or the
relevant confirmation. 

        "Stamp Tax" means any stamp, registration, documentation or similar tax. 

        "Tax" means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature (including interest, penalties and
additions thereto) that is imposed by any government or other taxing authority in respect of any payment under this Agreement other than a stamp, registration, documentation or similar tax. 

        "Tax Event" has the meaning specified in Section 5(b). 

        "Tax Event Upon Merger" has the meaning specified in Section 5(b). 

        "Terminated Transactions" means with respect to any Early Termination Date (a) if resulting from a Termination Event, all affected
Transactions and (b) if resulting from an Event of Default, all Transactions (in either case) in effect immediately before the effectiveness of the notice designating that Early Termination
Date (or, if "Automatic Early Termination" applies, immediately before that Early Termination Date). 

        "Termination Currency" has the meaning specified in the Schedule. 

        "Termination Currency Equivalent" means, in respect of any amount denominated in the Termination Currency, such Termination Currency
amount and, in respect of any amount denominated in a currency other than the Termination Currency (the "Other Currency"), the amount in the Termination Currency determined by the party making the
relevant determination as being required to purchase such amount of such Other Currency as at the relevant Early Termination Date, or, if the 

18

 

relevant Market Quotation or Loss (as the case may be), is determined as of a later date, that later date, with the Termination Currency at the rate equal to the spot exchange rate of the foreign
exchange agent (selected as provided below) for the purchase of such Other Currency with the Termination Currency at or about 11:00 a.m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a rate for the purchase of such Other Currency for value on the relevant Early Termination Date or that later date. The
foreign exchange agent will, if only one party is obliged to make a determination under Section 6(e), be selected in good faith by that party and otherwise will be agreed by the parties. 

        "Termination Event" means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to be applicable, a Credit Event Upon
Merger or an Additional Termination Event. 

        "Termination Rate" means a rate per annum equal to the arithmetic mean of the cost (without proof or evidence of any actual cost) to each
party (as certified by such party) if it were to fund or of funding such amounts. 

        "Unpaid Amounts" owing to any party means, with respect to an Early Termination Date, the aggregate of (a) in respect of all
Terminated Transactions, the amounts that became payable (or that would have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to such
Early Termination Date and which remain unpaid as at such Early Termination Date and (b) in respect of each Terminated Transaction, for each obligation under Section 2(a)(i) which
was (or would have been but for Section 2(a)(iii)) required to be settled by delivery to such party on or prior to such Early Termination Date and which has not been so settled as at such Early
Termination Date, an amount equal to the fair market value of that which was (or would have been) required to be delivered as of the originally scheduled date for delivery, in each case together with
(to the extent permitted under applicable law) interest, in the currency of such amounts, from (and including) the date such amounts or obligations were or would have been required to have been paid
or performed to (but excluding)
such Early Termination Date, at the Applicable Rate. Such amounts of interest will be calculated on the basis of daily compounding and the actual number of days elapsed. The fair market value of any
obligation referred to in clause (b) above shall be reasonably determined by the party obliged to make the determination under Section 6(e) or, if each party is so obliged, it shall be
the average of the Termination Currency Equivalents of the fair market values reasonably determined by both parties. 

        IN
WITNESS WHEREOF the parties have executed this document on the respective dates specified below with effect from the date specified on the first page of this document. 

	BANK OF AMERICA, N.A.	 	            , INC.
	By:	 	 	 	By:	 	 
	 	 	
	 	 	 	

	Name:	 	 	 	Name:	 	Victor C. Streufert
	 	 	
	 	 	 	

	Title:	 	 	 	Title:	 	Vice President—Finance

Chief Financial Officer and Treasurer
	 	 	
	 	 	 	

	Date:	 	 	 	Date:	 	 
	 	 	
	 	 	 	

	 	 	 	 	            , INC.
	 	 	 	 	By:	 	 
	 	 	 	 	 	 	

	 	 	 	 	Name:	 	Victor C. Streufert
	 	 	 	 	 	 	

	 	 	 	 	Title:	 	Vice President—Finance
	 	 	 	 	 	 	

	 	 	 	 	Date:	 	 
	 	 	 	 	 	 	

19

  

(Multicurrency—Cross Border)  

 
 

ISDA®
  International Swap Dealers Association, Inc.
  
    SCHEDULE
  to the
  Master Agreement    
  

        dated as of December 21, 2001 

	between	 	BANK OF AMERICA, N.A.	 	and	 	            , INC., and            , INC.
	 	 	("Party A")	 	 	 	(each individually, a "Party B Group Member, and collectively, "Party B")

 
 

PART 1: Termination Provisions    
  

	(a)
	"Credit Agreement" means the Note and Security Agreement dated as of December 21, 2001, between Party B, and Banc of America
Leasing & Capital, LLC, as amended and modified, and as may be further amended, modified, restated or replaced from time to time.

	(b)
	"Specified Entity" means in relation to Party A for the purpose of:- 

	 	 	Section 5(a)(v) (Default under Specified Transaction),	 	none;
	

 	
 	

Section 5(a)(vi) (Cross Default),	
 	

none;
	

 	
 	

Section 5(a)(vii) (Bankruptcy),	
 	

none; and
	

 	
 	

Section 5(b)(iv) (Credit Event Upon Merger),	
 	

none;
	

 	
 	

in relation to Party B for the purpose of:-	
 	

 
	

 	
 	

Section 5(a)(v) (Default under Specified Transaction)	
 	

none;
	

 	
 	

Section 5(a)(vi) (Cross Default),	
 	

none;
	

 	
 	

Section 5(a)(vii) (Bankruptcy),	
 	

none; and
	

 	
 	

Section 5(b)(iv) (Credit Event Upon Merger),	
 	

none.

	(c)
	"Specified Transaction" will have the meaning specified in Section 14, except that clause (a) of the definition of
"Specified Transaction" is revised by deleting the words "between one party to this Agreement (or any Credit Support Provider of such party or any applicable Specified Entity of such party) and the
other party to this Agreement (or any Credit Support Provider of such other party or any applicable Specified Entity of such other party)".

	(d)
	The  "Cross-Default" provisions of Section 5(a)(vi) (as amended in Part 5(g)) 

will
apply to Party A and

will apply to each Party B Group Member. 

In
connection therewith, "Specified Indebtedness" will not have the meaning specified in Section 14, and such definition shall be replaced by the
following: "any obligation in respect of the payment of moneys (whether present or future, contingent or otherwise, as principal or surety or otherwise), except that such term shall not include
obligations in respect of deposits received in the ordinary course of a party's banking business." 

"Threshold Amount" means with respect to each Party B Group Member, an amount equal to three percent (3%) of the Shareholders' Equity of Water Pik
Technologies, Inc. (a Credit Support 

20

 

Provider), and with respect to Party A, to three percent (3%) of the Shareholders' Equity of Bank of America Corporation. 

With
respect to Party B, any payment default under the Credit Agreement, or any failure to provide Insurance, (but only after the expiration of all applicable notice and grace periods)as required by
the Credit Agreement shall be an Event of Default under this Agreement. 

"Shareholders' Equity" means with respect to an entity, at any time, the sum (as shown in the most recent annual audited financial statements of such
entity) of (i) its capital stock (including preferred stock) outstanding, taken at par value, (ii) its capital surplus and (iii) its retained earnings, minus (iv) treasury
stock, each to be determined in accordance with generally accepted accounting principles. 

	(e)
	The  "Credit Event Upon Merger" provisions of Section 5(b)(iv) 

will
apply to Party A

will apply to each Party B Group Member. 

	(f)
	The
"Automatic Early Termination" provision of Section 6(a) 

will
not apply to Party A

will not apply to Party B. 

	(g)
	Payments on Early Termination. For the purpose of Section 6(e):

	(i)
	Loss
will apply.

	(ii)
	The
Second Method will apply. 

	(h)
	"Termination Currency" means United States Dollars.

	(i)
	"Additional Termination Event." Additional Termination Event will not apply. 

 
 

PART 2: Tax Representations    
  

	(a)
	Payer Tax Representations. For the purpose of Section 3(e) of this Agreement, Party A and Party B will make the following
representation:- 

It
is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority of any Relevant Jurisdiction to make any deduction or withholding for or on account
of any Tax from any payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made by it to the other party under this Agreement. In making this
representation, it may rely on (x) the accuracy of any representations made by the other party pursuant to Section 3(f) of this Agreement, (y) the satisfaction of the agreement
contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to
Section 4(a)(i) or 4(a)(iii) of this Agreement and (z) the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement,  provided that it shall
not be a breach of this representation where reliance is placed on clause (y) and the other party does not deliver a form
or document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position. 

	(b)
	Payee Tax Representations. For the purpose of Section 3(f) of this Agreement, Party A and Party B will make the following
representations specified below, if any:-

	(i)
	The
following representations will apply to Party A: 

Party
A is a national banking association created or organized under the laws of the United States of America and the federal taxpayer identification number is 94-1687665. 

21

 

	(ii)
	The
following representations will apply to Party B: 

Party
B Group Agent, Laars, Inc., is a corporation created or organized under the laws of the State of Delaware and the federal taxpayer identification number
is                        . 

 
 

PART 3: Agreement to Deliver Documents    
  

        For the purpose of Section 4(a)(i) and (ii) of this Agreement, each party agrees to deliver the following documents: 

	(a)
	Tax
forms, documents or certificates to be delivered are: 

	 	 	Party A and Party B	 	Any form, document or certificate as may be requested pursuant to Section 4(a)(iii) of this Agreement.	 	Upon request

	(b)
	Other
documents to be delivered are:- 

	Party Required to Deliver Document
 
	 	Form/Document/Certificate
	 	Date By Which to be Delivered
	 	Covered by Section 3(d) Representation

	Party B	 	Financial Statements of Party B and Credit Support Providers as defined and described in the Credit Agreement	 	Within the time specified in the Credit Agreement	 	Yes
	Party B	 	Credit Support Document(s)	 	Upon execution and delivery of this Agreement	 	No
	Party A and Party B	 	Certified copies of all corporate authorizations and any other documents with respect to the execution, delivery and performance of this Agreement and any Credit Support Document	 	Upon execution and delivery of this Agreement	 	Yes
	Party A and Party B	 	Certificate of authority and specimen signatures of individuals executing this Agreement any Credit Support Document and Confirmations	 	Upon execution and delivery of this Agreement and thereafter upon request of the other party	 	Yes

 
 

PART 4: Miscellaneous    
  

	(a)
	Address for Notices. For the purpose of Section 12(a) of this Agreement:- 

Address
for notice or communications to Party A: 

Bank
of America, N.A.

Sears Tower

233 South Wacker Drive, Suite 2800

Chicago, IL 60606

Attention: Swap Operations

Telex No.: 49663210 Answerback: NATIONSBANK CHA

Reuters Dealing Code: NBCH 

22

 

with
a copy to: 

Bank
of America, N.A.

315 Montgomery Street, CA5-704-10-25

San Francisco, California 94104

Attention: Capital Markets Documentation

Facsimile: 415-953-7997

Address for financial statements to Party A:

	 	 	Address:	 	Bank of America, N.A.

500-C Newport Center Drive

Newport Beach, California 92660-7010
	 	 	Attention:	 	Banc of America Leasing & Capital, Mailcode CA9-524-01-03

Address
for notice or communications to Party B: 

            ,
Inc.

23 Corporate Plaza, Suite 246, Newport Beach CA 92660

Attention: Victor C. Streufert, Vice President—Finance, Chief Financial Officer

and Treasurer

Telephone No.: 949-719-3700

Facsimile No.: 949-719-6472 

	(b)
	Process Agent. For the purpose of Section 13(c): 

Party
A appoints as its Process Agent: Not applicable. 

Party
B appoints as its Process Agent: Not applicable. 

	(c)
	Offices. The provisions of Section 10(a) will apply to this Agreement.

	(d)
	Multibranch Party. For the purpose of Section 10 of this Agreement:- 

Party
A is a Multibranch Party and may act through its Charlotte, North Carolina, Chicago, Illinois, San Francisco, California, New York, New York or London, England Office, or such other Office as
may be agreed to by the parties in connection with a Transaction. 

Party
B is not a Multibranch Party and may act through its Newport Beach, California Office, or such other Office as may be agreed to by the parties in connection with a Transaction. 

	(e)
	Calculation Agent. The Calculation Agent is Party A.

	(f)
	Credit Support Document. Details of any Credit Support Document:- 

Each
of the following, as amended, supplemented, modified, renewed, replaced, consolidated, substituted or extended from time to time, is a "Credit Support Document": 

	(i)
	In
relation to Party B: the Credit Agreement, as described in Part 1(a) above;

	(ii)
	The
Cross Collateralization And Cross Default Addendum dated as of December 21, 2001, executed by Party B, and            , Inc. in
favor of Banc of America Leasing & Capital, LLC, and

	(iii)
	any
agreement or document providing for collateral or security for the obligations of Party B hereunder. 

Party
B agrees that the security interests in collateral granted to Party A under the foregoing Credit Support Documents shall secure the obligations of Party B to Party A under this Agreement. 

23

 

"Credit
Support Documents" shall also include the following: 

	(iv)
	Guaranty
dated as of December 21, 2001, made by Water Pik, Inc. in favor of Banc of America Leasing & Capital, LLC;

	(v)
	Guaranty
dated as of December 21, 2001, made by Water Pik Technologies, Inc. in favor of Banc of America Leasing & Capital, LLC;

	(vi)
	Each
other guaranty of the obligations of Party B under this Agreement or under the other Credit Support Documents; and

	(vii)
	Each
amendment, supplement, modification, renewal, replacement, consolidation, substitution and extension to the foregoing. 

	(g)
	Credit Support Provider.

Credit
Support Provider means in relation to Party A: Not applicable. 

Credit
Support Provider means in relation to Party B:            , Inc.
and                        , Inc. 

	(h)
	Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York (without reference
to its conflict of laws doctrine).

	(i)
	Netting of Payments. All amounts payable on the same date, in the same currency and in respect of the same Transaction shall be netted
in accordance with Section 2(c) of this Agreement. The election
contained in the last paragraph of Section 2(c) of this Agreement shall not apply for the purposes of this Agreement.

	(j)
	"Affiliate" will have the meaning specified in Section 14 of this Agreement. 

24

  

 
 

PART 5: Other Provisions    
  

	(a)
	Set-off. Any amount (the "Early Termination Amount") payable to one party (the Payee) by the other party (the Payer) under
Section 6(e), in circumstances where there is a Defaulting Party or one Affected Party in the case where a Termination Event under Section 5(b)(iv) or (v) has occurred,
will, at the option of the party ("X") other than the Defaulting Party or the Affected Party (and without prior notice to the Defaulting Party or the Affected Party), be reduced by its
set-off against any amount(s) (the "Other Agreement Amount") payable (whether at such time or in the future or upon the occurrence of a contingency) by the Payee to the Payer (irrespective
of the currency, place of payment or booking office of the obligation) under any other agreement(s) between the Payee and the Payer or instrument(s) or undertaking(s) issued or executed by one party
to, or in favor of, the other party (and the Other Agreement Amount will be discharged promptly and in all respects to the extent it is so set-off). X will give notice to the other party
of any set-off effected under this Part 5(a). 

For
this purpose, either the Early Termination Amount or the Other Agreement Amount (or the relevant portion of such amounts) may be converted by X into the currency in which the other is denominated
at the rate of exchange at which such party would be able, acting in a reasonable manner and in good faith, to purchase the relevant amount of such currency. 

If
an obligation is unascertained, X may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant party accounting to the other when the
obligation is ascertained. 

Nothing
in this Part 5(a) shall be effective to create a charge or other security interest. This Part 5(a) shall be without prejudice and in addition to any right of set-off,
combination of accounts, lien or other right to which any party is at any time otherwise entitled (whether by operation of law, contract or otherwise). 

	(b)
	Delivery of Confirmations. For each Transaction entered into hereunder, Party A shall promptly send to the Party B Group Agent (as
defined below)a Confirmation via facsimile transmission. Party B agrees to respond to such Confirmation within two (2) Business Days, either confirming agreement thereto or requesting a
correction of any error(s) contained therein. Failure by Party A to send a
Confirmation or of Party B to respond within such period shall not affect the validity or enforceability of such Transaction. Absent manifest error, there shall be a presumption that the terms
contained in such Confirmation are the terms of the Transaction. Party A and each Party B Group Member agree that any such exchange of telexes or facsimile transmissions shall constitute a
Confirmation for all purposes hereunder.

	(c)
	Recording of Conversations. Party A and each Party B Group Member acknowledges and agrees to the tape recording of conversations
between them, whether by one or the other or all of them or their agents, and that any such tape recordings may be submitted in evidence in any proceedings relating to the Agreement.

	(d)
	Section 3(a)
of this Agreement is amended by (i) deleting the word "and" at the end of clause (iv); (ii) deleting the period at the end of
clause (v) and inserting therein "; and "; and (iii) by inserting the following additional representation: 

"(vi)
Eligible Contract Participant. Each party represents to the other party (which representation will be deemed to be repeated by each party on each
date on which a Transaction is entered into) that it is an "eligible contract participant" as defined in Section 1a(12) of the U.S. Commodity Exchange Act, 7 U.S.C. Section 1a(12)." 

25

 
	(e)
	Section 3
is revised so as to add the following Section (g) at the end thereof:

	"(g)
	Relationship Between Parties. Each party represents to the other party and will be deemed to represent to the other party on the date
on which it enters into a Transaction that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for that Transaction):-

	(i)
	Non-Reliance. It is acting for its own account, and it has made its own independent
decisions to enter into that Transaction and as to whether that Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisors as it has deemed necessary.
It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into that Transaction; it being understood that information and
explanations related to the terms and conditions of a Transaction shall not be considered investment advice or a recommendation to enter into that Transaction. Further, such party has not received
from the other party any assurance or guarantee as to the expected results of that Transaction.

	(ii)
	Evaluation and Understanding. It is capable of evaluating and understanding (on its own behalf or
through independent professional advice), and understands and accepts, the terms, conditions and risks of that Transaction. It is also capable of assuming, and assumes, the financial and other risks
of that Transaction.

	(iii)
	Status of Parties. The other party is not acting as an agent, fiduciary or advisor for it in respect
of that Transaction." 

	(f)
	Waiver of Right to Trial by Jury. PARTY A AND EACH PARTY B GROUP MEMBER HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY
WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

	(g)
	Cross Default. Section 5(a)(vi) of this Agreement is hereby amended adding the following after the semicolon at the end
thereof: 

"provided,
however, that notwithstanding the foregoing (but subject to any provision to the contrary contained in any such agreement or instrument), an Event of Default shall not occur under either
(1) or (2) above if the default, event of default or other similar condition or event referred to in (1) or the failure to pay referred to in (2) is caused not (even in
part) by the unavailability of funds but is caused solely due to a technical or administrative error which has been remedied within three Business Days after notice of such failure is given to the
party." 

	(h)
	Incorporation by Reference of Terms of Credit Agreement. The covenants, terms and provisions of, including all representations and
warranties of Party B contained in the Credit Agreement, as in effect as of the date of this Agreement, are hereby incorporated by reference in, and made part of, this Agreement to the same extent as
if such covenants, terms, and provisions 

were
set forth in full herein. Party B hereby agrees that, during the period commencing with the date of this Agreement through and including such date on which all of Party B's obligations under this
Agreement are fully performed, Party B will (a) observe, perform, and fulfill each and every such covenant, term, and provision applicable to Party B, as such covenants, terms, and provisions,
may be amended from time to time after the date of this Agreement with the consent of Party A and (b) deliver to Party A at the address for notices to Party A provided in Part 4 each
notice, document, certificate or other writing as Party B is obligated to furnish to any other party to the Credit Agreement. In the event the Credit Agreement terminates or becomes no longer binding
on Party B prior to the termination of this Agreement, such covenants, terms, and provisions (other 

26

 

than those requiring payments in respect of amounts owed under the Credit Agreement) will remain in force and effect for purposes of this Agreement as though set forth in full herein until the date
on
which all of Party B's obligations under this Agreement are fully performed, and this Agreement is terminated. 

	(i)
	References to Parties. Except as otherwise set forth in this Agreement, references to a "party" shall refer to
Party A and each Party B Group Member individually, except that if the reference to a "party" refers to that "party" taking any action or making any payment or delivery to or indemnifying the other
"party", such reference shall be read to require all Party B Group Members to perform such action or make such payment or delivery or indemnity with respect to Party A only, and not with respect to
the other Party B Group Members. The reference to a single agreement between the parties set forth in Section 1(c) of this Agreement refers to a single agreement between Party A, on the one
hand, and all the Party B Group Members as one Party B, on the other. The intent is to net obligations owing between Party A and Party B, not obligations among the Party B Group Members or between
Party A and any individual Party B Group Member. Each of the representations, agreements, Events of Default and Termination Events set forth in this Agreement made by or applicable to Party B shall be
deemed to be made by or applicable to each Party B Group Member individually. Each Party B Group Member agrees that this Agreement shall be enforceable against it and its heirs, distributees,
executors, administrators, guardian, conservator, successors and assigns, as applicable. Any use of the terms "it" or "its" in this Agreement, when used to refer to a party herein shall be deemed, in
the case of a Party B Group Member to be "he", "his" or "him" or "she" or "her", as appropriate, in the context in which such terms are used.

	(i)
	Party B Group Agent. Each Party B Group Member hereby appoints Laars, Inc. (the "Party B Group Agent") to act as agent for it to
receive all payments or deliveries to be made by Party A to Party B hereunder and to receive all notices, demand or communications to be sent by Party A to Party B hereunder. The Party B Group Agent
will promptly transmit to each other Party B Group Member all payments and deliveries, if applicable, and all notices so received. Upon delivery by Party A of any payment or delivery or notice, demand
or communication hereunder to the Party B Group Agent on behalf of all Party B Group Members, Party A shall be relieved of all further responsibility with respect thereto. The Party B Group Agent may
be changed by a written notice, signed by all Party B Group Members, delivered to Party A. Any actions taken by Party A prior to receiving notice of a change in the agent shall be binding on all Party
B Group Members. The foregoing agency designation is made for the convenience of Party A. Notwithstanding the foregoing agency designation for certain purposes, each Party B Group Member remains
authorized to enter into any Transaction with Party A, to give instructions to Party A, and to negotiate the terms of this Agreement, including the terms of the Schedule and any Confirmation, on
behalf of all Party 

B
Group Members; and all Party B Group Members shall be bound by the actions of any Party B Group Member. 

	(k)
	Joint and Several Liability. Each Party B Group Member agrees that it shall be jointly and severally liable for the performance of all
obligations of Party B and each other Party B Group Member under this Agreement (including, without limitation, for the payment of all amounts due Party A hereunder). Each Party Group Member further
agrees as follows (without affecting the rights and obligations of Party B as a whole):

	(i)
	The
obligations of each Party B Group Member hereunder are independent of the obligations of each other Party B Group Member, and a separate action or
actions may be brought and prosecuted against any Party B Group Member, whether action is brought against any other Party B Group Member or whether any Party B Group Member is joined in any such
action. 

27

 

Each
Party B Group Member waives the benefit of any statute of limitations affecting its liability hereunder or the enforcement thereof. 

	(ii)
	Each
Party B Group Member authorizes Party A, without notice of demand and without affecting its liability hereunder, from time to time, to
(A) renew, compromise, extend, terminate early or otherwise change the time for payment of, or otherwise change the terms of this Agreement, including the payment terms; (B) take and
hold security for the payment of the obligations hereunder and exchange, enforce, waive, release, fail to perfect, sell or otherwise dispose of any such security; (C) apply such security and
direct the order or manner of sale thereof as Party A in its discretion may determine; and (D) release or substitute any Party B Group Member.

	(iii)
	Each
Party B Group Member waives any right to require Party A to (A) proceed against any other Party B Group Member; (B) proceed against
or exhaust any security held for the obligations of Party B; or (C) pursue any other remedy in Party A's power whatsoever. Each Party B Group Member hereby waives any defense arising by reason
of any disability or other defense of any other Party B Group Member, or the cessation of any cause whatsoever of the liability of Party B, or any claim that the obligations of one Party B Group
Member exceed or are more burdensome than those of another Party B Group Member. Until all obligations hereunder of Party B to Party A have been paid in full, no Party B Group Member shall have any
right of subrogation, and each Party B Group Member waives any right to enforce any remedy which Party B now has or may hereafter have against Party A, and waives any benefit of and any right to
participate in any security now or hereafter held by Party A. Each Party B Group Member waives all presentments, demands for performance, notices of non-performance, protests, notices of
protests and notices of dishonor with respect to the obligations of each other Party B Group Member hereunder.

	(iv)
	Each
Party B Group Member acknowledges that it has the sole responsibility for obtaining from the other Party B Group Members such information
concerning such other Party B Group Members' financial conditions or business operations as may be required by such Party B Group Member, and that Party A has no duty at any time to disclose to Party
B any information relating to the business operations or financial conditions of any Party B Group Member. 

28

 

Accepted and agreed:  

	BANK OF AMERICA, N.A.	 	            , INC.
	

By:	
 	

 	
 	

By:	
 	

 
	 	 	
	 	 	 	

	 	 	Name:

Title:

Date:	 	 	 	Name: Victor C. Streufert

Title: Vice President—Finance

Chief Financial Officer and Treasurer

Date:
	

 	
 	

 	
 	

            , INC.
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	

	 	 	 	 	 	 	Name: Victor C. Streufert

Title: Vice President—Finance

Date:

29

  

 
 

Schedule to Form of ISDA (International Swap Dealers Association)
  Master Agreement dated December 21, 2001, between Bank of America, N.A.
  And Laars, Inc, Jandy Industries, Inc. and Water Pik,
 Inc.
  (Schedule to Exhibit 4.23 to Form 10K filed 3/21/02)    

        There
are two ISDA Agreements entered into on substantially the form shown above. The agreements are entered into between the following parties on the following dates: 

	1.
	Laars/Jandy ISDA Agreement. ISDA (International Swap Dealers Association) Master Agreement dated December 21, 2001 between Bank
of America, N.A. ("Party A"), and Laars, Inc. and Jandy Industries, Inc. (each individually, a "Party B Group Member" and collectively "Party B"). Other particulars of the Laars/Jandy
ISDA Agreement are shown on the confirmation letter dated January 2, 2002 from Bank of America, N.A. attached to this schedule.

	2.
	Water Pik ISDA Agreement. ISDA (International Swap Dealers Association) Master Agreement dated December 21, 2001 between Bank of
America, N.A. ("Party A"), and Water Pik, Inc. ("Party B"). Other particulars of the Water Pik ISDA Agreement are shown on the confirmation letter dated January 2, 2002 from Bank of
America, N.A. attached to this schedule. 

30

  

233 South Wacker Drive, Suite 2800

Chicago, Illinois 60606

Tel 312-234-2732

Fax 312-234-3603 

Bank of America N.A.  

	TO:	 	Water Pik Inc.

23 Corporate Plaza, Ste 246

Newport Beach, CA 92660
	

ATTN:	
 	

Vic Streufert
	TEL:	 	559-432-7246
	FAX:	 	559-432-9381
	

FROM:	
 	

Bank of America, N.A.

233 South Wacker Drive—Suite 2800

Chicago, Illinois 60606

Scott Marler / Eric Borden
	

Date:	
 	

02JAN02

Our
Reference No. 239583 

Internal
Tracking No. 3414092 

        The
purpose of this letter agreement is to confirm the terms and conditions of the Transaction entered into between Water Pik Inc. and Bank of America, N.A. (each a "party" and
together "the parties" on the Trade Date specified below (the "Transaction"). This letter agreement constitutes a "Confirmation" as referred to in the ISDA Master Agreement specified in
paragraph 1 below (the "Agreement"). 

        The
definitions and provisions contained in the 2000 ISDA Definitions, as published by the International Swaps and Derivatives Association, Inc., (the "Definitions") are
incorporated into this Confirmation. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. 

	1.
	This
Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement dated as of December 21, 2001, as amended and supplemented from time to time (the
"Agreement"), between the parties. All provisions contained in the Agreement govern this Confirmation except as expressly modified below. 

        In
this Confirmation "Party A" means Bank of America, N.A. and "Party B" means Water Pik, Inc. 

31

 
	2.
	The
terms of the particular Transaction to which this Confirmation relates are as follows: 

	 	 	National Amount:	 	USD 6,835,500.00
	 	 	Trade Date:	 	31DEC01
	 	 	Effective Date:	 	01JAN02
	 	 	Termination Date:	 	01JAN07, subject to adjustment in accordance with the Modified Following Business Day Convention
	 	 	Amortization:	 	APPLICABLE (See Schedule A attached hereto)
	

 	
 	

Fixed Amounts:	
 	

 
	

 	
 	

Fixed Rate Payer:	
 	

Party B
	

 	
 	

Fixed Rate Payer Payment Dates:	
 	

The 1st of each January, April, July and October, commencing 01APR02 and ending 01JAN07, subject to adjustment in accordance with the Modified Following Business Day Convention.
	

 	
 	

Fixed Rate:	
 	

4.48000%
	

 	
 	

Fixed Rate Day Count Fraction:	
 	

Actual/360
	

 	
 	

Floating Amounts:	
 	

 
	

 	
 	

Floating Rate Payer:	
 	

Party A
	

 	
 	

Floating Rate Payer Payment Dates:	
 	

The 1st of each January, April, July and October, commencing 01APR02 and ending 01JAN07, subject to adjustment in accordance with the Modified Following Business Day Convention.
	

 	
 	

Floating Rate for initial Calculation Period:	
 	

1.88125%
	

 	
 	

Floating Rate Option:	
 	

USD-LIBOR-BBA
	

 	
 	

Averaging:	
 	

Inapplicable
	

 	
 	

Designated Maturity:	
 	

3 Month
	

 	
 	

Spread:	
 	

None
	

 	
 	

Floating Rate Day Count Fraction:	
 	

Actual/360
	

 	
 	

Reset Dates:	
 	

The first day of each Calculation Period
	

 	
 	

Compounding:	
 	

Inapplicable
	

 	
 	

Business Days:	
 	

New York London
	

 	
 	

Calculation Agent:	
 	

Party A

	3.
	Recording
of Conversations: 

Each
party to this Transaction acknowledges and agrees to the tape recording of conversations between the parties to this Transaction whether by one or other or both of the parties or their agents,
and that any such tape recordings may be submitted in evidence in any Proceedings relating to the Agreement and/or this Transaction. 

32

 
	4.
	Account
Details: 

Account
for payments to Party A: 

	 	 	 	 	USD
	 	 	NAME:	 	BANK OF AMERICA NA
	 	 	CITY:	 	NEW YORK
	 	 	ABA#	 	(intentionally deleted)
	 	 	ATTN:	 	BOFAUS3N
	 	 	NAME:	 	BANK OF AMERICA NA
	 	 	CITY:	 	CHARLOTTE
	 	 	ACCT:	 	(intentionally deleted)
	 	 	ATTN:	 	RATE DERIVATIVE SETTLEMENTS
	 	 	ATTN:	 	BOFAUS6SGDS

Account
for payments to Party B: 

	 	 	 	 	USD

	5.
	Offices:
 

The
Office of Party A for this Transaction is: Charlotte, NC 

Please
send reset notices to fax no. (312-234-3603) 

The
Office of Party B for this Transaction is: California, USA 

        Credit
Support Document: As per Agreement (and Credit Support Annex if applicable). 

        Please
confirm that the foregoing correctly sets forth the terms and conditions of our agreement by responding within three (3) Business Days by returning via telecopier an
executed copy of this Confirmation to the attention of Global Derivative Operations at (fax no. (312) 234-3603). 

        Failure
to respond within such period shall not affect the validity or enforceabliity of this Transaction, and shall be deemed to be an affirmation of the terms and conditions contained
herein, absent manifest error. 

Yours
Sincerely, 

Bank
of America, N.A. 

	

 	
 	

/s/  DAVE WALKER      
 Dave Walker

Senior Vice President	
 	

 

Authorized
Signatory 

Accepted
and confirmed as of the date first written: 

Water
Pik, Inc. 

	

By:	
 	

/s/  VICTOR C. STREUFERT      
	
 	

 
	Name:	 	Victor C. Streufert
	 	 
	Title:	 	Vice President
	 	 

Our
Reference #239583 

33

 

 
 

SCHEDULE A TO CONFIRMATION
  AMORTIZATION SCHEDULE    
  

	CALCULATION PERIOD
 
	 	NOTIONAL AMOUNT

	01JAN02	 	02APR02	 	6,835,500.00
	02APR02	 	01JUL02	 	6,493,725.00
	01JUL02	 	01OCT02	 	6,151,950.00
	01OCT02	 	02JAN03	 	5,810,175.00
	02JAN03	 	01APR03	 	5,468,400.00
	01APR03	 	01JUL03	 	5,126,625.00
	01JUL03	 	01OCT03	 	4,784,850.00
	01OCT03	 	02JAN04	 	4,443,075.00
	02JAN04	 	01APR04	 	4,101,300.00
	01APR04	 	01JUL04	 	3,759,525.00
	01JUL04	 	01OCT04	 	3,417,750.00
	01OCT04	 	04JAN05	 	3,075,975.00
	04JAN05	 	01APR05	 	2,734,200.00
	01APR05	 	01JUL05	 	2,392,425.00
	01JUL05	 	03OCT05	 	2,050,650.00
	03OCT05	 	03JAN06	 	1,708,875.00
	03JAN06	 	03APR06	 	1,367,100.00
	03APR06	 	03JUL06	 	1,025,325.00
	03JUL06	 	02OCT06	 	683,550.00
	02OCT06	 	01JAN07	 	341,775.00

34

 

233
South Wacker Drive, Suite 2800

Chicago, Illinois 60606

Tel 312-234-2732

Fax 312-234-3603 

Bank of America N.A.  

	TO:	 	Laars, Inc.

23 Corporate Plaza, Ste 246

Newport Beach, CA 92660
	

ATTN:	
 	

Vic Streufert
	TEL:	 	949-719-3700
	FAX:	 	949-719-6472
	

FROM:	
 	

Bank of America, N.A.

233 South Wacker Drive—Suite 2800

Chicago, Illinois 60606

Scott Marler / Eric Borden
	

Date:	
 	

02JAN02

Our
Reference No. 239629 

Internal
Tracking No. 341401 

        The
purpose of this letter agreement is to confirm the terms and conditions of the Transaction entered into between Laars, Inc. and Bank of America, N.A. (each a "party" and
together "the parties" on the Trade Date specified below (the "Transaction"). This letter agreement constitutes a "Confirmation" as referred to in the ISDA Master Agreement specified in
paragraph 1 below (the "Agreement"). 

        The
definitions and provisions contained in the 2000 ISDA Definitions, as published by the International Swaps and Derivatives Association, Inc., (the "Definitions") are
incorporated into this Confirmation. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. 

	1.
	This
Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement dated as of December 21, 2001, as amended and supplemented from time to time (the
"Agreement"), between the parties. All provisions contained in the Agreement govern this Confirmation except as expressly modified below. 

        In
this Confirmation "Party A" means Bank of America, N.A. and "Party B" means Laars, Inc. 

35

 
	2.
	The
terms of the particular Transaction to which this Confirmation relates are as follows: 

	 	 	National Amount:	 	USD 3,454,500.00
	 	 	Trade Date:	 	31DEC01
	 	 	Effective Date:	 	01JAN02
	 	 	Termination Date:	 	01JAN07, subject to adjustment in accordance with the Modified Following Business Day Convention
	 	 	Amortization:	 	APPLICABLE (See Schedule A attached hereto)
	

 	
 	

Fixed Amounts:	
 	

 
	

 	
 	

Fixed Rate Payer:	
 	

Party B
	

 	
 	

Fixed Rate Payer Payment Dates:	
 	

The 1st of each January, April, July and October, commencing 01APR02 and ending 01JAN07, subject to adjustment in accordance with the Modified Following Business Day Convention.
	

 	
 	

Fixed Rate:	
 	

4.48000%
	

 	
 	

Fixed Rate Day Count Fraction:	
 	

Actual/360
	

 	
 	

Floating Amounts:	
 	

 
	

 	
 	

Floating Rate Payer:	
 	

Party A
	

 	
 	

Floating Rate Payer Payment Dates:	
 	

The 1st of each January, April, July and October, commencing 01APR02 and ending 01JAN07, subject to adjustment in accordance with the Modified Following Business Day Convention.
	

 	
 	

Floating Rate for initial Calculation Period:	
 	

1.88125%
	

 	
 	

Floating Rate Option:	
 	

USD-LIBOR-BBA
	

 	
 	

Averaging:	
 	

Inapplicable
	

 	
 	

Designated Maturity:	
 	

3 Month
	

 	
 	

Spread:	
 	

None
	

 	
 	

Floating Rate Day Count Fraction:	
 	

Actual/360
	

 	
 	

Reset Dates:	
 	

The first day of each Calculation Period
	

 	
 	

Compounding:	
 	

Inapplicable
	

 	
 	

Business Days:	
 	

New York London
	

 	
 	

Calculation Agent:	
 	

Party A

	3.
	Recording
of Conversations: 

Each
party to this Transaction acknowledges and agrees to the tape recording of conversations between the parties to this Transaction whether by one or other or both of the parties or their agents,
and that any such tape recordings may be submitted in evidence in any Proceedings relating to the Agreement and/or this Transaction. 

36

 
	4.
	Account
Details: 

Account
for payments to Party A: 

	 	 	 	 	USD
	 	 	NAME:	 	BANK OF AMERICA NA
	 	 	CITY:	 	NEW YORK
	 	 	ABA#	 	(intentionally deleted)
	 	 	ATTN:	 	BOFAUS3N
	 	 	NAME:	 	BANK OF AMERICA NA
	 	 	CITY:	 	CHARLOTTE
	 	 	ACCT:	 	(intentionally deleted)
	 	 	ATTN:	 	RATE DERIVATIVE SETTLEMENTS
	 	 	ATTN:	 	BOFAUS6SGDS

Account
for payments to Party B: 

	 	 	 	 	USD

	1.
	Offices:
 

The
Office of Party A for this Transaction is: Charlotte, NC 

Please
send reset notices to fax no. (312-234-3603) 

The
Office of Party B for this Transaction is: California, USA 

        Credit
Support Document: As per Agreement (and Credit Support Annex if applicable). 

        Please
confirm that the foregoing correctly sets forth the terms and conditions of our agreement by responding within three (3) Business Days by returning via telecopier an
executed copy of this Confirmation to the attention of Global Derivative Operations at (fax no. (312) 234-3603). 

        Failure
to respond within such period shall not affect the validity or enforceabliity of this Transaction, and shall be deemed to be an affirmation of the terms and conditions contained
herein, absent manifest error. 

Yours
Sincerely, 

Bank
of America, N.A. 

	

 	
 	

/s/  DAVE WALKER      
 Dave Walker

Senior Vice President	
 	

 

Authorized
Signatory 

Accepted
and confirmed as of the date first written: 

Laars, Inc.

	

By:	
 	

/s/  VICTOR C. STREUFERT      
	
 	

 
	Name:	 	Victor C. Streufert
	 	 
	Title:	 	Vice President
	 	 

Our
Reference #239629 

37

 

 
 

SCHEDULE A TO CONFIRMATION
  AMORTIZATION SCHEDULE    
  

	CALCULATION PERIOD
 
	 	NOTIONAL AMOUNT

	01JAN02	 	02APR02	 	3,454,500.00
	02APR02	 	01JUL02	 	3,281,755.00
	01JUL02	 	01OCT02	 	3,109,050.00
	01OCT02	 	02JAN03	 	2,936,325.00
	02JAN03	 	01APR03	 	2,763,600.00
	01APR03	 	01JUL03	 	2,590,875.00
	01JUL03	 	01OCT03	 	2,418,150.00
	01OCT03	 	02JAN04	 	2,245,425.00
	02JAN04	 	01APR04	 	2,072,700.00
	01APR04	 	01JUL04	 	1,899,975.00
	01JUL04	 	01OCT04	 	1,727,250.00
	01OCT04	 	04JAN05	 	1,554,525.00
	04JAN05	 	01APR05	 	1,381,800.00
	01APR05	 	01JUL05	 	1,209,075.00
	01JUL05	 	03OCT05	 	1,036,350.00
	03OCT05	 	03JAN06	 	863,625.00
	03JAN06	 	03APR06	 	690,900.00
	03APR06	 	03JUL06	 	518,175.00
	03JUL06	 	02OCT06	 	345,450.00
	02OCT06	 	01JAN07	 	172,725.00

38

QuickLinks

ISDA ® International Swap Dealers Association, Inc.

MASTER AGREEMENT

ISDA ® International Swap Dealers Association, Inc. SCHEDULE to the Master Agreement

PART 1: Termination Provisions

PART 2: Tax Representations

PART 3: Agreement to Deliver Documents

PART 4: Miscellaneous

PART 5: Other Provisions

Schedule to Form of ISDA (International Swap Dealers Association) Master Agreement dated December 21, 2001, between Bank of America, N.A. And Laars, Inc, Jandy Industries, Inc. and Water Pik, Inc. (Schedule to
Exhibit 4.23 to Form 10K filed 3/21/02)

SCHEDULE A TO CONFIRMATION AMORTIZATION SCHEDULE

SCHEDULE A TO CONFIRMATION AMORTIZATION SCHEDULE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]