JACUZZI BRANDS INC
EX-10.4 US PLEDGE AGREEMENT
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>7
<FILENAME>g84033exv10w4.txt
<DESCRIPTION>EX-10.4 US PLEDGE AGREEMENT
<TEXT>
<PAGE>
                                                                    EXHIBIT 10.4

                                PLEDGE AGREEMENT

         PLEDGE AGREEMENT, dated as of July 15, 2003 (this "Pledge Agreement"),
made by each of the parties set forth on the signature pages hereto as a Pledgor
(each individually a "Pledgor" and collectively, the "Pledgors"), in favor of
Fleet Capital Corporation ("Fleet"), as administrative agent and collateral
agent (in its capacity as administrative agent and collateral agent, together
with any successor, "Administrative Agent") for (i) each lender now or hereafter
being party to the Loan Agreement (as hereinafter defined) as a Revolving Credit
Lender or as a Term Loan B Lender (each such lender, including Fleet as a
Revolving Credit Lender, together with any successors, individually a "Lender"
and collectively the "Lenders"), (ii) Silver Point Finance LLC, as agent for the
Term Loan B Lenders (together with any successor, "Term Loan B Agent"), (iii)
Fleet National Bank as issuer from time to time of letters of credit issued
pursuant to the Loan Agreement (together with any successor, the "Issuing Bank")
and (iv) any Revolving Credit Lender or Affiliate thereof to whom Product
Obligations (as defined in the Loan Agreement) are owed.

                              W I T N E S S E T H:

         WHEREAS, Jacuzzi Brands, Inc., a Delaware corporation ("Parent" or
"Borrower Representative"), Bathcraft, Inc., a Georgia corporation
("Bathcraft"), Eljer Plumbingware, Inc., a Delaware corporation ("Eljer"),
Gatsby Spas, Inc., a Florida corporation ("Gatsby"), Jacuzzi Inc., a Delaware
corporation ("Jacuzzi"), JUSI Holdings, Inc., a Delaware corporation ("JUSI"),
Redmont, Inc., a Mississippi corporation ("Redmont"), Rexair, Inc., a Delaware
corporation ("Rexair"), Sundance Spas, Inc., a California corporation
("Sundance"), Zurn PEX, Inc. (formerly known as United States Brass
Corporation), a Delaware corporation ("USBC"), USI American Holdings, Inc., a
Delaware corporation ("USIAH"), USI Global Corp., a Delaware corporation ("USI
Global"), and Zurco, Inc., a Delaware corporation ("Zurco"), and Zurn
Industries, Inc., a Pennsylvania corporation ("Zurn") (Parent, Bathcraft, Eljer,
Gatsby, Jacuzzi, JUSI, Redmont, Rexair, Sundance, USBC, USIAH, USI Global, Zurco
and Zurn each, a "Borrower" and collectively, the "Borrowers"), have entered
into a Loan and Security Agreement, dated as of July 15, 2003 (as the same may
be amended, supplemented, restated or otherwise modified from time to time, the
"Loan Agreement") with Administrative Agent, Term Loan B Agent, Credit Suisse
First Boston, acting through its Cayman Islands branch ("CSFB"), as a
co-syndication agent, CSFB and Fleet Securities, Inc., collectively, as joint
lead arrangers and joint book runners, Bank One, NA, as a co-syndication agent,
and the Revolving Credit Lenders and Term Loan B Lenders party thereto from time
to time;

         WHEREAS, pursuant to the Loan Agreement, the Lenders have severally
agreed to make Loans and other extensions of credit to the Borrowers upon the
terms and subject to the conditions set forth therein;

         WHEREAS, the Borrowers, pursuant to the Loan Agreement, and the other
Pledgors, pursuant to that certain Guarantor Security Agreement, dated as of the
date hereof (the "Guarantor Security Agreement"), among the Pledgors and the



<PAGE>

Administrative Agent, have granted a Lien in favor of the Administrative Agent
in all of the Collateral, in each case described therein, including, without
limitation, Investment Property, Certificated Securities, Uncertificated
Securities and Instruments;

         WHEREAS, each Pledgor is the legal and beneficial owner of all of the
Pledged Stock (as hereinafter defined) set forth opposite such Pledgor's name in
Schedule I hereto and all of the Pledged Debt (as hereinafter defined) set forth
opposite such Pledgor's name in Schedule II hereto;

         WHEREAS, it is a condition precedent to the obligation of the Lenders
to make their respective Loans and other extensions of credit to the Borrowers
under the Loan Agreement that each Pledgor shall have executed and delivered
this Pledge Agreement to Administrative Agent; and

         WHEREAS, each of the Pledgors shall derive substantial benefits from
the financial accommodations to be provided under the Loan Agreement.

         NOW, THEREFORE, in consideration of the premises and in order to induce
the Lenders to make Loans and the Issuing Bank to issue or the Administrative
Agent to cause the issuance of Letters of Credit under the Loan Agreement, each
of the Pledgors hereby agrees with the Administrative Agent as follows:

         1. DEFINED TERMS. Unless otherwise defined herein, terms which are
defined in the Loan Agreement and used herein are so used as so defined, and the
following terms shall have the following meanings:

         "PLEDGED DEBT" means all indebtedness for borrowed money owed to any
Pledgor by any Person, including, without limitation, any Subsidiary of such
Pledgor.

         "PLEDGED ENTITY" means (i) the issuer of any Pledged Stock hereunder
and (ii) the obligor under any Pledged Debt hereunder.

         "PLEDGED STOCK" means one hundred percent (100%) of the capital stock
and other equity interests of each Domestic Subsidiary owned by any Pledgor and
sixty five percent (65%) of the voting capital stock and other equity interests
of each first-tier Foreign Subsidiary owned by any Pledgor other than, in each
case, capital stock and other equity interests of any Immaterial Subsidiary.

         2. PLEDGE; GRANT OF SECURITY INTEREST. In furtherance, and not in
limitation, of the provisions of the Loan Agreement and the Guarantor Security
Agreement and the Liens granted to Administrative Agent therein, the Pledgors
hereby grant to Administrative Agent for the benefit of itself, Term Loan B
Agent, Issuing Bank, each Revolving Credit Lender, each Term Loan B Lender and
each Revolving Credit Lender or Affiliate thereof to whom Product Obligations
are owed, a first priority security interest in and Lien on the following
Collateral (collectively, the "PLEDGED COLLATERAL"), as collateral security for
the prompt payment and performance of the Obligations:

         (a) the Pledged Stock set forth on Schedule I hereto and the
certificates representing the Pledged Stock, and all dividends, cash,



                                     - 2 -
<PAGE>

instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged
Stock;

         (b) the Pledged Debt set forth on Schedule II hereto and the notes and
instruments evidencing the Pledged Debt, and all payments of principal or
interest, cash, note, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of the Pledged Debt;

         (c) all additional shares of capital stock and other equity interests
constituting Pledged Stock from time to time acquired by any Pledgor in any
manner and the certificates representing such additional Pledged Stock, and all
dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such additional Pledged Stock; and

         (d) all additional indebtedness constituting Pledged Debt from time to
time owed to any Pledgor and the notes and instruments evidencing such
additional Pledged Debt, and all payments of principal, interest, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such
additional Pledged Debt.

         3. STOCK POWERS AND NOTE ENDORSEMENTS. Concurrently with the delivery
to Administrative Agent of each certificate representing any of the Pledged
Stock, the Pledgor shall deliver an undated stock power or other instrument of
transfer satisfactory to Administrative Agent covering such certificate, duly
executed in blank. Concurrently with the delivery to Administrative Agent of
each note or instrument representing any of the Pledged Debt, the Pledgor shall
deliver an undated endorsement of such note or instrument, duly executed in
blank.

         4. COVENANTS. Each Pledgor covenants and agrees with Administrative
Agent that, from and after the date of this Pledge Agreement for so long as
there are any Obligations outstanding other than Obligations (excluding
Obligations to Term Loan B Agent and Term Loan B Lenders) that have been cash
collateralized or covered by a letter of credit to the satisfaction of
Administrative Agent:

         (a) If such Pledgor shall, as a result of its ownership of the Pledged
Stock or Pledged Debt, become entitled to receive or shall receive any
certificate or other instrument (including, without limitation, any certificate
representing a dividend or a distribution in connection with any
reclassification, increase or reduction of capital and any certificate issued in
connection with any reorganization), option, right, note or instrument, whether
in addition to, in substitution of, as a conversion of, or in exchange for any
shares of the Pledged Stock or any of the Pledged Debt, or otherwise in respect
thereof, such Pledgor shall accept the same as Administrative Agent's agent,
hold the same in trust for Administrative Agent and deliver the same forthwith
to Administrative Agent in the exact form received, duly endorsed by such
Pledgor to Administrative Agent, if required, together with, in the case of
certificates, an undated stock power or other instrument of transfer
satisfactory to Administrative Agent covering such certificate duly executed in
blank and, if Administrative Agent so requests, with signature guaranteed, to be



                                     - 3 -
<PAGE>

held by Administrative Agent hereunder as additional collateral security for the
Obligations. Any sums paid upon or in respect of the Pledged Stock or Pledged
Debt, whether as a dividend, interest, return of capital, payment of principal
or upon the liquidation or dissolution of any Pledged Entity shall be deposited
in a Dominion Account, and if any property shall be distributed upon or with
respect to the Pledged Stock or Pledged Debt, the property so distributed shall
be subject to the security interest granted in such property pursuant to the
Loan Agreement or Guarantor Security Agreement, as applicable, as additional
collateral security for the Obligations.

         (b) Except to the extent permitted by the Loan Agreement, each Pledgor
will not (i) with respect to Pledged Entities whose stock or other equity
interests have been pledged hereunder, vote to enable, or take any other action
to permit, any such Pledged Entity to issue any additional capital stock or
other equity interests of any nature or issue any other securities convertible
into or granting the right to purchase or exchange for any stock or other equity
securities, (ii) sell, assign, transfer, exchange or otherwise dispose of, or
grant any option with respect to, any of the Pledged Collateral, or (iii)
create, incur or permit to exist any Lien or option in favor of, or any claim of
any person with respect to, any of the Pledged Collateral, or any interest
therein, except for Permitted Liens. Each Pledgor will defend the right, title
and interest of Administrative Agent in and to the Pledged Collateral against
the claims and demands of all persons whomsoever..

         (c) At any time and from time to time, upon the written request of
Administrative Agent, and at the sole expense of Pledgors, each Pledgor will
promptly and duly execute and deliver such further instruments and documents and
take such further actions as Administrative Agent may reasonably request for the
purposes of obtaining or preserving the full benefits of this Pledge Agreement
and of the rights and powers herein granted. If any amount payable under or in
connection with any of the Pledged Collateral shall be or become evidenced by
any promissory note, other instrument or chattel paper, such note, instrument or
chattel paper shall be immediately delivered to Administrative Agent, duly
endorsed in a manner reasonably satisfactory to Administrative Agent, to be held
as Pledged Collateral pursuant to this Pledge Agreement.

         5. VOTING RIGHTS. Except as otherwise set forth herein, unless an Event
of Default shall have occurred and be continuing and upon notice to Borrower
Representative, each Pledgor shall be permitted to exercise all voting and
corporate rights with respect to its respective Pledged Stock; provided,
however, that no vote shall be cast or corporate right exercised or other action
taken which would result in any violation of any provision of the Loan Agreement
or any other Loan Document.

         6. RIGHTS OF ADMINISTRATIVE AGENT.

         (a) If an Event of Default shall have occurred and be continuing,
Administrative Agent shall have the right to require that all Pledged Stock
shall be registered in the name of Administrative Agent or its nominee, and
Administrative Agent or its nominee may thereafter exercise (i) all voting,
corporate and other rights pertaining to the Pledged Stock at any meeting of
shareholders of the Pledgors or otherwise and (ii) any and all rights of
conversion, exchange, subscription and any other rights, privileges or options
pertaining to the Pledged Stock as if it were the absolute owner thereof
(including, without limitation, the right to exchange at its discretion any and
all of the Pledged Stock upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate structure of any




                                     - 4 -
<PAGE>

Pledged Entity, or upon the exercise by any Pledgor or Administrative Agent of
any right, privilege or option pertaining to such shares of the Pledged Stock,
and in connection therewith, the right to deposit and deliver any and all of the
Pledged Stock with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as it may determine), all
without liability except to account for property actually received by it, but
Administrative Agent shall have no duty to exercise any such right, privilege or
option and shall not be responsible for any failure to do so or delay in so
doing.

         (b) The rights of Administrative Agent hereunder shall not be
conditioned or contingent upon the pursuit by Administrative Agent of any right
or remedy against any Pledgor or against any other person which may be or become
liable in respect of all or any of the Obligations or against any other
collateral security therefor, guaranty thereof or right of offset with respect
thereto.

         7. REMEDIES. If an Event of Default shall have occurred and shall be
continuing, Administrative Agent may exercise, in addition to all other rights
and remedies granted in this Pledge Agreement, the Loan Agreement or any other
Loan Document, all rights and remedies of a secured party under the UCC. Without
limiting the generality of the foregoing, Administrative Agent, without demand
of performance or other demand, presentment or protest, advertisement or notice
of any kind (except any notice required by the Loan Agreement, hereby or by
applicable law) to or upon any Pledgor or any other person (all and each of
which demands, defenses, advertisements and notices are hereby waived, except
any notice required by the Loan Agreement, hereby or by applicable law), may in
such circumstances forthwith collect, receive, appropriate and realize upon the
Pledged Collateral, or any part thereof, and/or may forthwith sell, assign, give
an option or options to purchase or otherwise dispose of and deliver the Pledged
Collateral or any part thereof (or contract to do any of the foregoing), in one
or more portions at public or private sale or sales, in the over-the-counter
market, at any exchange, broker's board or office of Administrative Agent or
elsewhere upon such terms and conditions as it may deem advisable and at such
prices as it may deem best, for cash or on credit or for future delivery without
assumption of any credit risk. Administrative Agent shall have the right upon
any such public sale or sales, and, to the extent permitted by law, upon any
such private sale or sales, to purchase the whole or any part of the Pledged
Collateral so sold, free of any right or equity of redemption in the applicable
Pledgor, which right or equity is hereby waived or released. Administrative
Agent shall apply any proceeds from time to time held by it and the net proceeds
of any such collection, recovery, receipt, appropriation, realization or sale as
provided for in the Loan Agreement. To the extent permitted by applicable law,
each Pledgor waives all claims, damages and demands it may acquire against
Administrative Agent arising out of the exercise by Administrative Agent of any
of its rights hereunder. If any notice of a proposed sale or other disposition
of Pledged Collateral shall be required by law, such notice shall be deemed
reasonable and proper if given at least ten (10) days before such sale or other
disposition. In consideration for not being required to cause a registration
statement under the Securities Act of 1933, as amended (the "Act"), to be
effective with respect to the Pledged Collateral, each Pledgor hereby waives any



                                     - 5 -
<PAGE>

objections to the absence of a public sale or a higher price that might be
obtained at a public sale. Any provision hereof to the contrary notwithstanding,
however, the Pledged Collateral shall not be sold unless Administrative Agent
shall have received an acceptable opinion of counsel from a nationally
recognized law firm, experienced in such matters, to the effect that the sale
and delivery of the Pledged Collateral is an exempt transaction under the Act,
and the registration of the Pledged Collateral under the Act is not required in
connection with such transaction or that a registration statement with respect
to such Pledged Collateral is effective, and no stop order suspending the
effectiveness thereof has been issued and that no proceedings for that purpose
have been commenced or are contemplated under the Act and that such sale does
not violate any federal or state securities law.

         8. LIMITATION ON DUTIES REGARDING COLLATERAL. Administrative Agent
shall not be liable or responsible in any way for the safekeeping of any of the
Pledged Collateral or for any loss or damage thereto (except for reasonable care
in the custody thereof while any Pledged Collateral is in Administrative Agent's
actual possession) or for any diminution in the value thereof, or for any act or
default of any warehouseman, carrier, forwarding agency, or other person
whomsoever, but the same shall be at Pledgors' sole risk.

         9. ADMINISTRATIVE AGENT APPOINTED ATTORNEY-IN-FACT AND PROXY. Each
Pledgor hereby appoints Administrative Agent or Administrative Agent's designee
as such Pledgor's attorney-in-fact and proxy, with full authority in such
Pledgor's place and stead, and in such Pledgor's name, from time to time in
Administrative Agent's discretion to take any action and to execute any
instrument which Administrative Agent may deem necessary to perfect, protect or
enforce any right or security interest hereunder or otherwise accomplish the
purposes of this Pledge Agreement, including, without limitation, to execute and
file alone any financing statement under the UCC and any document or instrument
under any other applicable laws, and subject to Section 6 hereof, to receive,
endorse and collect all instruments made payable to such Pledgor representing
any dividend, interest or other distribution in respect of any of the Pledged
Collateral and to give full discharge for the same. Each Pledgor ratifies and
approves all such acts of such attorney and proxy. Neither Administrative Agent
nor said attorney and proxy will be liable for any acts or omissions, nor for
any error of judgment or mistake of fact or law other than Administrative
Agent's or said attorney's and proxy's gross negligence or willful misconduct as
determined by a final nonappealable judgment of a court of competent
jurisdiction.

         10. POWERS COUPLED WITH AN INTEREST. All powers, proxies,
authorizations and agencies herein contained with respect to the Pledged
Collateral are powers coupled with an interest and irrevocable.

         11. REINSTATEMENT. If, at any time, all or part of any payment of the
Obligations theretofore made by any Pledgor or any other person is rescinded or
otherwise required to be returned by Administrative Agent or any Lender for any
reason whatsoever (including, without limitation, the insolvency, bankruptcy or
reorganization of any person), this Pledge Agreement shall continue to be
effective or shall be reinstated, as the case may be, as to the Obligations
which were satisfied by the payment to be rescinded or returned, all as though
such payment had not been made.

         12. SEVERABILITY. Wherever possible, each provision of this Pledge
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Pledge Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Pledge Agreement.




                                     - 6 -
<PAGE>

         13. AMENDMENTS. None of the terms or provisions of this Pledge
Agreement may be waived, amended, supplemented or otherwise modified except by a
written instrument executed by each Pledgor and the Administrative Agent and in
accordance with Section 11.10 of the Loan Agreement.

         14. REMEDIES CUMULATIVE. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any
other rights or remedies provided by law.

         15. SECTION HEADINGS. The Section headings used in this Pledge
Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation hereof.

         16. SUCCESSORS AND ASSIGNS. This Pledge Agreement shall be binding upon
and inure to the benefit of the successors and assigns of each Pledgor,
Administrative Agent, Term Loan B Agent and each Lender.

         17. EXECUTION IN COUNTERPARTS. This Pledge Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which counterparts taken together shall constitute but
one and the same instrument.

         18. TIME OF ESSENCE. Time is of the essence of this Pledge Agreement.

         19. INTERPRETATION No provision of this Pledge Agreement shall be
construed against or interpreted to the disadvantage of any party hereto by any
court or other governmental or judicial authority by reason of such party having
or being deemed to have structured or dictated such provision.

         20. GOVERNING LAW. THIS PLEDGE AGREEMENT HAS BEEN NEGOTIATED, EXECUTED
AND DELIVERED IN AND SHALL BE DEEMED TO HAVE BEEN MADE IN NEW YORK, NEW YORK.
THIS PLEDGE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT IF ANY OF THE PLEDGED
COLLATERAL SHALL BE LOCATED IN ANY JURISDICTION OTHER THAN NEW YORK, THE LAWS OF
SUCH JURISDICTION SHALL GOVERN THE METHOD, MANNER AND PROCEDURE FOR FORECLOSURE
OF ADMINISTRATIVE AGENT'S LIEN UPON SUCH PLEDGED COLLATERAL AND THE ENFORCEMENT
OF ADMINISTRATIVE AGENT'S REMEDIES IN RESPECT OF SUCH PLEDGED COLLATERAL TO THE
EXTENT THAT THE LAWS OF SUCH JURISDICTION ARE DIFFERENT FROM OR INCONSISTENT
WITH THE LAWS OF NEW YORK. AS PART OF THE CONSIDERATION FOR NEW VALUE RECEIVED,
AND REGARDLESS OF ANY PRESENT OR FUTURE DOMICILE OR PRINCIPAL PLACE OF BUSINESS
OF PLEDGORS, ADMINISTRATIVE AGENT OR ANY LENDER, EACH PLEDGOR HEREBY CONSENTS
AND AGREES THAT THE SUPREME COURT OF NEW YORK COUNTY, NEW YORK, OR, AT
ADMINISTRATIVE AGENT'S OPTION, THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE
ANY CLAIMS OR DISPUTES BETWEEN PLEDGORS, ON THE ONE HAND, AND ADMINISTRATIVE
AGENT, ISSUING BANK, TERM LOAN B AGENT OR ANY LENDER, ON THE OTHER HAND,



                                     - 7 -
<PAGE>

PERTAINING TO THIS PLEDGE AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATED
TO THIS PLEDGE AGREEMENT. EACH PLEDGOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE
TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH
PLEDGOR HEREBY WAIVES ANY OBJECTION WHICH SUCH PLEDGOR MAY HAVE BASED UPON LACK
OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY
CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT. EACH PLEDGOR HEREBY WAIVES PERSONAL SERVICE OF THE
SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND
AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PLEDGOR AT THE ADDRESS DESIGNATED
FOR SUCH PLEDGOR IN THIS PLEDGE AGREEMENT AND THAT SERVICE SO MADE SHALL BE
DEEMED COMPLETED UPON THE EARLIER OF ACTUAL RECEIPT THEREOF OR 3 BUSINESS DAYS
AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID. NOTHING IN THIS PLEDGE
AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF ADMINISTRATIVE
AGENT, TERM LOAN B AGENT, ISSUING BANK OR ANY LENDER TO SERVE LEGAL PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW, OR TO PRECLUDE THE ENFORCEMENT BY
ADMINISTRATIVE AGENT, TERM LOAN B AGENT, ISSUING BANK OR ANY LENDER OF ANY
JUDGMENT OR ORDER OBTAINED IN SUCH FORUM OR THE TAKING OF ANY ACTION UNDER THIS
PLEDGE AGREEMENT TO ENFORCE SAME IN ANY OTHER APPROPRIATE FORUM OR JURISDICTION.

         21. WAIVERS BY PLEDGORS. EACH PLEDGOR WAIVES (i) THE RIGHT TO TRIAL BY
JURY (WHICH ADMINISTRATIVE AGENT, TERM LOAN B AGENT, ISSUING BANK AND EACH
LENDER HEREBY ALSO WAIVES) IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF
ANY KIND ARISING OUT OF OR RELATED TO ANY OF THE LOAN DOCUMENTS, THE OBLIGATIONS
OR THE PLEDGED COLLATERAL; (ii) PRESENTMENT, DEMAND AND PROTEST AND NOTICE OF
PRESENTMENT, PROTEST, DEFAULT, NON-PAYMENT, MATURITY, RELEASE, COMPROMISE,
SETTLEMENT, EXTENSION OR RENEWAL OF ANY OR ALL COMMERCIAL PAPER, ACCOUNTS,
CONTRACT RIGHTS, DOCUMENTS, INSTRUMENTS, CHATTEL PAPER AND GUARANTIES AT ANY
TIME HELD BY ADMINISTRATIVE AGENT, TERM LOAN B AGENT, ISSUING BANK OR ANY LENDER
ON WHICH SUCH PLEDGOR MAY IN ANY WAY BE LIABLE AND HEREBY RATIFIES AND CONFIRMS
WHATEVER ADMINISTRATIVE AGENT, TERM LOAN B AGENT, ISSUING BANK OR ANY LENDER MAY
DO IN THIS REGARD; (iii) NOTICE PRIOR TO ADMINISTRATIVE AGENT'S TAKING
POSSESSION OR CONTROL OF THE PLEDGED COLLATERAL OR ANY BOND OR PLEDGE WHICH



                                     - 8 -
<PAGE>

MIGHT BE REQUIRED BY ANY COURT PRIOR TO ALLOWING ADMINISTRATIVE AGENT TO
EXERCISE ANY OF ADMINISTRATIVE AGENT'S REMEDIES; (iv) THE BENEFIT OF ALL
VALUATION, APPRAISEMENT AND EXEMPTION LAWS; (v) NOTICE OF ACCEPTANCE HEREOF AND
(vi) EXCEPT AS PROHIBITED BY LAW, ANY RIGHT TO CLAIM OR RECOVER ANY SPECIAL,
EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN
ADDITION TO, ACTUAL DAMAGES. EACH PLEDGOR ACKNOWLEDGES THAT THE FOREGOING
WAIVERS ARE A MATERIAL INDUCEMENT TO ADMINISTRATIVE AGENT'S ENTERING INTO THIS
PLEDGE AGREEMENT AND THAT ADMINISTRATIVE AGENT, TERM LOAN B AGENT, ISSUING BANK
AND EACH LENDER IS RELYING UPON THE FOREGOING WAIVERS IN ITS FUTURE DEALINGS
WITH EACH PLEDGOR. EACH PLEDGOR WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THE
FOREGOING WAIVERS WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY
WAIVED ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE
EVENT OF LITIGATION, THIS PLEDGE AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO
A TRIAL BY THE COURT.

         22. OBLIGATIONS JOINT AND SEVERAL. All obligations and liabilities of
the Pledgors hereunder are joint and several.

                            [Signature Pages Follow]






                                     - 9 -
<PAGE>





         IN WITNESS WHEREOF, this Pledge Agreement has been duly executed as of
the date and year first above written.


                    PLEDGORS:

                    Jacuzzi Brands, Inc.
                    Bathcraft, Inc.
                    Eljer Plumbingware, Inc.
                    Gatsby Spas, Inc.
                    Jacuzzi Inc.
                    JUSI Holdings, Inc.
                    Redmont, Inc.
                    Rexair, Inc.
                    Sundance Spas, Inc.
                    USI American Holdings, Inc.
                    USI Global Corp.
                    Zurco, Inc.
                    Zurn Industries, Inc.,
                    Zurn PEX, Inc.
                    Asteria Company (f/k/a Elite Bath Company)
                    Baylis Brothers Inc.
                    Bruckner Manufacturing Corp. (f/k/a Farberware Inc.)
                    Carlsbad Corp. (f/k/a Odyssey Sports, Inc.)
                    Compax Corp.
                    Eljer Industries, Inc.
                    Environmental Energy Company
                    Gary Concrete Products, Inc.
                    HL Capital Corp.
                    Jacuzzi Whirlpool Bath, Inc.
                    KLI, Inc. (f/k/a Keller Ladders, Inc.)
                    Krikles Canada U.S.A., Inc.  (f/k/a Selkirk Canada U.S.A.,
                    Inc.)
                    Krikles Europe U.S.A., Inc.  (f/k/a Selkirk Europe U.S.A.,
                    Inc.)
                    Krikles, Inc.  (f/k/a Selkirk, Inc.)
                    Lokelani Development Corporation
                    Luxor Industries Inc.
                    Maili Kai Land Development Corporation
                    Mobilite, Inc.
                    Nissen Universal Holdings Inc.
                    Outdoor Products LLC
                    PH Property Development Company
                    PLC Realty Inc. (f/k/a Prescolite Lite Controls, Inc.)
                    Rexair Holdings, Inc.
                    Sanitary - Dash Manufacturing Co., Inc.


                                     - 10 -
<PAGE>

                    SH 1 Inc.
                    Strategic Capital Management, Inc.
                    Strategic Membership Company
                    Streamwood Corporation (f/k/a Quantum Performance Films,
                    Inc.)
                    TA Liquidation Corp. (f/k/a Tommy Armour Golf Company)
                    Trimfoot Co.
                    TT Liquidation Corp.
                    UGE Liquidation Inc. (f/k/a W.K. 25, Inc.)
                    USI Atlantic Corp.
                    USI Capital, Inc.
                    USI Funding, Inc.
                    USI Properties, Inc.
                    USI Realty Corp.
                    Zurn (Cayman Islands), Inc.
                    Zurn Constructors, Inc. (f/k/a Advanco Constructors, Inc.)
                    Zurn EPC Services, Inc. (f/k/a National Energy Production
                    Corporation)
                    Zurnacq of California, Inc.


                    By: /s/ Steven C. Barre
                        -------------------------------------------------
                    Name:  Steven C. Barre
                           ----------------------------------------------
                    Title: Vice President and Assistant Secretary
                           ----------------------------------------------



                    FLEET CAPITAL CORPORATION,
                    as Administrative Agent


                    By: /s/ Patrick Lee
                        -------------------------------------------------
                    Name:  Patrick Lee
                           ----------------------------------------------
                    Title: Vice President
                           ----------------------------------------------




                                     - 11 -
<PAGE>


                                   SCHEDULE I
                                  PLEDGED STOCK

                                     PART A.
                              DOMESTIC SUBSIDIARIES
<TABLE>
<CAPTION>

--------------------------------- ------------------------------ ----------------- -------------- ------------------
                                                                                     NUMBER OF       CERTIFICATE
            PLEDGOR                          ISSUER              NATURE OF SHARES     SHARES          NUMBER(S)
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
<S>                               <C>                                 <C>                  <C>                    <C>
Eljer Industries, Inc.            Eljer Plumbingware, Inc.            Common               1,000                R-2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Eljer Plumbingware, Inc.          Krikles, Inc.                       Common               1,000                  2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Eljer Plumbingware, Inc.          Zurn PEX, Inc. (f/k/a United        Common                 800                R-1
                                  States Brass Corporation)
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Jacuzzi Brands, Inc.              USI Atlantic Corp.                  Common                 100                A-1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Jacuzzi Brands, Inc.              USI Global Corp.                    Common                 100                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Jacuzzi Brands, Inc.              Zurn Industries, Inc.               Common                 100                U-1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Jacuzzi Inc.                      Asteria Company                     Common                  10                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Jacuzzi Inc.                      BathCraft, Inc.                     Common                  10                  2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Jacuzzi Inc.                      Gatsby Spas, Inc.                   Common                  10                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Jacuzzi Inc.                      Jacuzzi Whirlpool Bath, Inc.        Common                   1                  2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Jacuzzi Inc.                      Redmont, Inc.                       Common                  10                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Jacuzzi Inc.                      Sundance Spas, Inc.                 Common                 100                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Baylis Brothers Inc.                Common               1,000                C-8
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Bruckner Manufacturing Corp.        Common               1,000                  4
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Jacuzzi Inc.                        Common               1,000                  2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               KLI, Inc.                           Common                 100                  2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Luxor Industries Inc.               Common               1,000                  6
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Mobilite, Inc.                      Common              10,000                  2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Nissen Universal Holdings           Common               1,000                  7
                                  Inc.
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Outdoor Products LLC              Membership               100                  1
                                                                     Interest
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               PH Property Development             Common               1,000                  3
                                  Company
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               PLC Realty Inc.                     Common                 100                  5
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Rexair Holdings, Inc.               Common               1,000                  7
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               SH 1 Inc.                           Common                 100                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Strategic Membership Company        Common                 100                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Streamwood Corporation              Common                 100                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               TA Liquidation Corp.                Common               1,000                  4
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Trimfoot Co.                        Common               1,000                 C5
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Trimfoot Co.                      Preferred              8,655                 P5
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               TT Liquidation Corp.                Common                 518                  9
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               USI Capital, Inc.                   Common                 100                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------

</TABLE>

                                     - 12 -
<PAGE>

<TABLE>
<CAPTION>

--------------------------------- ------------------------------ ----------------- -------------- ------------------
                                                                                     NUMBER OF       CERTIFICATE
            PLEDGOR                          ISSUER              NATURE OF SHARES     SHARES          NUMBER(S)
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
<S>                               <C>                                 <C>                  <C>                    <C>
Krikles, Inc.                     Krikles Canada U.S.A., Inc.         Common               1,000                  3
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Krikles, Inc.                     Krikles Canada U.S.A., Inc.       Preferred              1,000                  3
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Krikles, Inc.                     Krikles Europe U.S.A., Inc.         Common               1,000                  3
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Krikles, Inc.                     Krikles Europe U.S.A., Inc.       Preferred              1,000                  3
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Nissen Universal Holdings Inc.    UGE Liquidation Inc.                Common                 100                  4
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
PH Property Development Company   Lokelani Development                Common                 100                  1
                                  Corporation
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
PH Property Development Company   Maili Kai Land Development          Common                  10                  1
                                  Corporation
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
PH Property Development Company   USI Properties, Inc.                Common                 100                  7
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
PH Property Development Company   USI Realty Corp.                    Common                 100                  4
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Rexair Holdings, Inc.             Rexair, Inc.                        Common                   1                  3
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
TA Liquidation Corp.              Carlsbad Corp.                      Common               1,000                106
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
TT Liquidation Corp.              Compax Corp.                        Common                 200                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
USI American Holdings, Inc.       USI Global Corp.                  Preferred              1,000                P-1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
USI Atlantic Corp.                USI American Holdings, Inc.         Common                 200               1, 2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
USI Global Corp.                  JUSI Holdings, Inc.                 Common                 100                  3
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
USI Global Corp.                  Strategic Capital                   Common                 100                  1
                                  Management, Inc.
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
USI Global Corp.                  USI Funding, Inc.                   Common                 100                  2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Constructors, Inc.           Gary Concrete Products, Inc.        Common                 100                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Constructors, Inc.           Zurn EPC Services, Inc.             Common              49,400                 23
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Eljer Industries, Inc.              Common               1,000              RPZ-1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Eljer Industries, Inc.            Preferred              1,000               RZ-1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Environmental Energy Company        Common               1,000                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             HL Capital Corp.                    Common               1,000                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Sanitary-Dash Manufacturing         Common              315.02                 40
                                  Co., Inc.
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Zurco, Inc.                         Common               1,000                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Zurn (Cayman Islands), Inc.         Common               1,000                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Zurn Constructors, Inc.             Common                 500                  3
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Zurnacq of California, Inc.         Common               1,000                  1
--------------------------------- ------------------------------ ----------------- -------------- ------------------
</TABLE>

                                     - 13 -
<PAGE>




                                     PART B.
                         FIRST-TIER FOREIGN SUBSIDIARIES
<TABLE>
<CAPTION>
--------------------------------- ------------------------------ ----------------- -------------- ------------------
            PLEDGOR                          ISSUER              NATURE OF SHARES    NUMBER OF       CERTIFICATE
                                                                                      SHARES          NUMBER(S)
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
<S>                                     <C>                         <C>                        <C>                <C>
Jacuzzi Brands, Inc.              PINCO 1805 Limited                 Ordinary                  1                  2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               Elgin Handles, Limited              Common                  65                  2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
JUSI Holdings, Inc.               USI Export, Inc.                    Common                  65                  3
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Krikles Canada U.S.A., Inc.       Krikles Canada, Inc.                Common                 252                  2
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Krikles Canada U.S.A., Inc.       Krikles Canada, Inc.               Class A           1,192,427                  2
                                                                    Preferred
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
USI Global Corp.                  USI Mayfair Limited                 Common                  65                  6
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn (Cayman Islands), Inc.       Zurn Asia Holdings Limited         Ordinary                  1                  2

--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Zurn Europe Limited                Ordinary                  1              1 (a)
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Zurn Industries (Thailand)         Ordinary            519,990                (a)
                                  Company Ltd.
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
Zurn Industries, Inc.             Zurn Industries, Limited            Common                  65                  4
--------------------------------- ------------------------------ ----------------- -------------- ------------------

</TABLE>

                                     PART C.
                                THIRD-PARTY STOCK
<TABLE>
<CAPTION>

--------------------------------- ------------------------------ ----------------- -------------- ------------------
            PLEDGOR                          ISSUER              NATURE OF SHARES    NUMBER OF       CERTIFICATE
                                                                                      SHARES          NUMBER(S)
--------------------------------- ------------------------------ ----------------- -------------- ------------------
--------------------------------- ------------------------------ ----------------- -------------- ------------------
<S>                               <C>                                 <C>              <C>                      <C>
USI Global Corp.                  Spear & Jackson plc                 Common           3,543,281                354
--------------------------------- ------------------------------ ----------------- -------------- ------------------

</TABLE>

NOTE

(a)      Stock certificate to be provided post-closing.



                                     - 14 -
<PAGE>


                                   SCHEDULE II
                                  PLEDGED DEBT

                                     PART A.
                      INTERCOMPANY LOANS--DOMESTIC OBLIGOR
<TABLE>
<CAPTION>

---------------------------------------- ----------------------- --------------- ------------------------
                                                                                  OUTSTANDING PRINCIPAL
                PLEDGOR                         OBLIGOR          MATURITY DATE           AMOUNT
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
<S>                                      <C>                        <C>                   <C>
Jacuzzi Inc.                             Gatsby Spas, Inc.           Demand               $16,014,000.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
JUSI Holdings, Inc.                      Jacuzzi Inc.                Demand               $14,514,000.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
JUSI Holdings, Inc.                      PH Property                9/15/05                $2,019,000.00
                                         Development Company
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
JUSI Holdings, Inc.                      Jacuzzi Brands, Inc.        Demand              $315,928,000.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
JUSI Holdings, Inc.                      USI Realty Corp.           9/15/05                   $14,638.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         Jacuzzi Brands, Inc.        Demand                $2,462,092.56
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
Jacuzzi Brands, Inc.                     Zurn Industries, Inc.      9/15/10              $200,000,000.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Atlantic Corp.                       Jacuzzi Brands, Inc.        Demand          (pound)1,759,642.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         Jacuzzi Inc.               9/15/05               $13,965,176.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         Jacuzzi Inc.               9/15/05               $93,794,824.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         Jacuzzi Inc.                Demand                $5,377,500.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         JUSI Holdings, Inc.        9/15/06               $14,000,000.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         JUSI Holdings, Inc.         Demand                $2,289,953.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         JUSI Holdings,              Demand               $14,514,000.00
                                         Inc.-Jacuzzi
                                         Inc.-Gatsby Spas, Inc.
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         Sundance Spas, Inc.         Demand               $30,322,632.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         Jacuzzi Brands, Inc.        Demand              $172,777,238.00
                                                                                                     (a)
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         Jacuzzi Brands, Inc.        Demand              $147,641,000.00
---------------------------------------- ----------------------- --------------- ------------------------
</TABLE>

NOTE

(a)      This note was decreased from $217,811,569 to 210,811,569 to net the old
         note of $7,000,000 against this note. Then this note was decreased to
         172,777,238 by paydowns in FY03.


                                     - 15 -
<PAGE>

                                     PART B.
                       INTERCOMPANY LOANS--FOREIGN OBLIGOR

<TABLE>
<CAPTION>

---------------------------------------- ----------------------- --------------- ------------------------
                GRANTOR                                                           OUTSTANDING PRINCIPAL
                                                OBLIGOR          MATURITY DATE           AMOUNT
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
<S>                                      <C>                         <C>                      <C>
USI Global Corp.                         BB Investments              Demand                   $48,784.87
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         BB Investments              Demand                  $287,286.45
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         Jacuzzi (Europe)            Demand               $23,083,371.97
                                         S.p.A.
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         USI Mayfair Limited         Demand            (pound)150,000.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         USI Mayfair Limited         Demand             (pound)4,910,083
                                                                                                     (b)
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         USI Mayfair Limited         Demand             (pound)37,499.25
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         USI Mayfair Limited         Demand                $7,000,000.00
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
USI Global Corp.                         USI Mayfair Limited         Demand         (pound)41,269,900.00
---------------------------------------- ----------------------- --------------- ------------------------

</TABLE>

NOTE

(b)    This Note was partially contributed as part of the recapitalization of
       Mayfair. In addition the following notes were 100% contributed:
       (pound)63,500,000,(pound)12,000,000, and(pound)3,100,000.





                                     - 16 -
<PAGE>


                                     PART C.
                                THIRD-PARTY LOANS

<TABLE>
<CAPTION>

---------------------------------------- ----------------------- --------------- ------------------------
                GRANTOR                                                           OUTSTANDING PRINCIPAL
                                                OBLIGOR          MATURITY DATE           AMOUNT
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
<S>                                      <C>                              <C>                 <C>
PH Property Development Company          Woodlands Ventures LLC   October 2005                $9,256,969
---------------------------------------- ----------------------- --------------- ------------------------
---------------------------------------- ----------------------- --------------- ------------------------
Jacuzzi Inc.                             Polyair Inter Pack,       March 2009                 $5,000,000
                                         Inc.                                         (convertible note)
---------------------------------------- ----------------------- --------------- ------------------------



</TABLE>

                                     - 17 -

</TEXT>
</DOCUMENT>
