Amended & Restated Stock Pledge Agreement



 











Exhibit 10.3




AMENDED AND RESTATED STOCK PLEDGE AGREEMENT



THIS AMENDED AND RESTATED STOCK PLEDGE AGREEMENT (this “Agreement”) is made and entered into as of
December 23, 2005, between the Pledgors identified below (individually referred to as a “Pledgor”
and collectively as the “Pledgors”), and BANK OF AMERICA, N.A., a national banking association, in
its capacity as Collateral and administrative agent (in such capacity, together with its successors
in such capacity, the “Agent”) for each of the financial institutions (the “Lenders” and
collectively with the Agent, the “Secured Parties”) now or hereafter party to the Second Amended
Credit Agreement (as defined below).




Recitals:




     Agent, Lenders, Applica Incorporated, a Florida corporation (“Borrower”), the other Pledgors
(except PPC Industries Ltd., a British Virgin Islands company (“PPC)), Applica Canada Corporation,
a Nova Scotia Corporation and affiliate of Borrower, and certain other entities are parties to a
Second Amended and Restated Credit Agreement dated as of December 23, 2005 (as at any time amended,
modified, restated renewed or extended, the “Second Amended Credit Agreement”), which amends and
restates a certain Amended and Restated Credit Agreement dated November 17, 2004 among certain of
the parties (as amended, the “Prior Credit Agreement). Pursuant to the Second Amended Credit
Agreement, Lenders have agreed to make loans and other extensions of credit to or for the benefit
of Borrower on the terms and subject to all of the conditions set forth in the Second Amended
Credit Agreement. Capitalized terms used in these Recitals and elsewhere in this Agreement, unless
otherwise defined, shall have the meanings ascribed to them in the Second Amended Credit Agreement.


Pursuant to a Stock Pledge Agreement dated December 28, 2001 (together with a Pledge Agreement
Supplement dated as of November 17, 2004, the “Existing Stock Pledge”), Pledgors (other than PPC
and HPG LLC, a Delaware limited liability company) pledged certain capital stock and equity
interests to Agent to secure the payment of all liabilities and obligations of Borrower to Agent
and Lenders under the Prior Credit Agreement and related documents.



As a condition to their extension of any credit to Borrower under the Second Amended Credit
Agreement, Secured Parties have required that Pledgors agree to amend and restate the Existing
Stock Pledge so that, as so amended and restated, the Existing Stock Pledge will read as
hereinafter set forth. To induce each of the Secured Parties to extend credit to Borrower under
the Second Amended Credit Agreement in accordance with the terms thereof (which extensions of
credit inure to the direct and indirect benefit of all Pledgors), Pledgors have agree to execute
and deliver this Agreement.



Each Pledgor acknowledges that it will materially benefit from the loans and advances to be made
and the letters of credit to be issued under the Second Amended Credit Agreement;




Agreement:



NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the
parties hereto agree as follows:





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     1. Pledge and Grant of Security Interest.



          1.1. As collateral security for the payment and performance of all debts, obligations or
liabilities under the Subsidiary Guaranty and of all of the Obligations under (and as defined in)
the Second Amended Credit Agreement (collectively, the “Secured Obligations”), and subject to
Section 10 hereof, each Pledgor hereby pledges and collaterally assigns to the Agent for
the benefit of the Agent and the Lenders, and grants to the Agent for the benefit of the Agent and
the Lenders a first priority security interest in, all of such Pledgor’s right, title and interest
in and to the following:





          (a) in the case of all Pledgors other than PPC, all of the issued and outstanding
            shares of common stock now or hereafter owned by such Pledgor with respect to each of its
Domestic Subsidiaries and 65% of all issued and outstanding shares of stock of each of its
current and future Direct Foreign Subsidiaries, all such Subsidiaries as of the date hereof
(and outstanding shares) being identified on Schedule I hereto;




          (b) in the case of PPC, all issued and outstanding shares of common stock of PPC’s
ownership in Applica Asia Limited, a Hong Kong company (“Applica Asia”), as identified on
Schedule I hereto (together with those shares enumerated in subsection (a), above,
collectively referred to as the “Pledged Interests”);




          (c) all cash, securities, dividends, rights, interests and other property at any time
and from time to time declared or distributed in respect of or in exchange for any or all of
the Pledged Interests; and




          (d) all other property hereafter delivered to the Agent in substitution for or in
addition to any of the foregoing, all certificates and instruments representing or
evidencing such property and all cash, securities, interest, dividends, rights, and other
property at any time and from time to time declared or distributed in respect of or in
exchange for any or all of the Pledged Interests.


All such Pledged Interests, certificates, instruments, cash, securities, interest, dividends,
rights and other property referred to in this Section 1 are herein collectively referred to
as the “Collateral.” All of the Pledged Interests are owned by the respective Pledgors and
represented by the stock certificates listed on Schedule I hereto. There have been
delivered to the Agent with respect to all the certificated Pledged Interests existing on the date
hereof, certificates evidencing such Pledged Interests, together with undated stock powers or other
transfer instruments duly executed in blank by the Pledgor.




          1.2. The Pledgor agrees to deliver all the Collateral to the Agent at such location as the
Agent shall from time to time designate by written notice pursuant to Section 19 hereof for
its custody at all times until termination of this Agreement, together with such instruments of
assignment and transfer as requested by the Agent.




          1.3. All advances, charges, costs and expenses, including, without limitation, reasonable
attorneys’ fees, incurred or paid by the Agent or any Lender in exercising any right, power or
remedy conferred by this Agreement, or in the enforcement thereof, shall become a part of the
Secured Obligations secured hereunder and shall be paid to the Agent for the benefit of Secured
Parties by each Pledgor immediately upon demand therefor, with interest thereon until paid in full
at the Base Rate.




     2. Status of Pledged Interests.



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Each Pledgor hereby represents and warrants to the Secured Parties that (a) all of the shares of
the Pledged Interests are validly issued and outstanding, fully paid and nonassessable and
constitute (i) all the issued and outstanding shares of voting stock of each Domestic Subsidiary
(other than Applica Asia), (ii) 65% of all of the issued and outstanding voting stock of the Direct
Foreign Subsidiaries, all as set forth on Schedule I hereto, and (iii) all of the issued
and outstanding shares of voting stock of Applica Asia, (b) each Pledgor is the registered and
record and beneficial owner of its Pledged Interests, free and clear of all Liens, charges,
equities, encumbrances and restrictions on pledge or transfer (other than the pledge hereunder and
under the Loan Documents and applicable restrictions pursuant to federal and state securities laws,
(c) it has full corporate power, legal right and lawful authority to execute this Agreement and to
pledge, assign and transfer its Pledged Interests in the manner and form hereof, and (d) the
pledge, assignment and delivery of its Pledged Interests to the Agent for the benefit of Secured
Parties pursuant to this Agreement creates a valid and perfected first priority security interest
in such Pledged Interests, securing the payment of the Secured Obligations, assuming continuous and
uninterrupted possession thereof by the Agent. Except as otherwise expressly provided herein or in
the Second Amended Credit Agreement, none of the Pledged Interests (nor any interest therein or
thereto) shall be sold, transferred or assigned without the Agent’s prior written consent, which
may be withheld for any reason. Each Pledgor covenants with the Agent for the benefit of the
Lenders that it shall at all times cause its Pledged Interests (other than the Partnership
Interests) to be represented by the certificates now and hereafter delivered to the Agent in
accordance with Section 1 hereof and that it shall cause each of its Subsidiaries not to
issue any capital stock, or securities convertible into capital stock, at any time during the term
of this Agreement other than to the Borrower or another Guarantor who shall immediately pledge such
additional capital stock to the Agent on substantially identical terms as are contained herein.
Each Pledgor hereby agrees not to enter into any agreement requiring that the voting rights
associated with the Pledged Interests be exercised in any particular manner nor grant any interest
in or permit to exist any Lien, charge, encumbrance or restriction with respect to the Pledged
Interests (other than applicable restrictions pursuant to federal and state securities laws).




     3. Preservation and Protection of Collateral.



          3.1. No Secured Party shall be under any duty or liability with respect to the collection,
protection or preservation of the Collateral, or otherwise, beyond the use of reasonable care in
the custody and preservation thereof while in its possession.




          3.2. Each Pledgor agrees to pay when due all taxes, charges, Liens and assessments against the
Collateral, unless being contested in good faith by appropriate proceedings diligently conducted
and against which adequate reserves have been established in accordance with GAAP. Upon the
failure of any Pledgor to so pay or contest such taxes, charges, Liens or assessments, the Agent at
its option may pay or contest any of them (the Agent having the sole right to determine the
legality or validity and the amount necessary to discharge such taxes, charges, Liens or
assessments).




     4. Default.



          If any of the Secured Obligations are not paid as of the end of the Business Day on which such
Secured Obligations become due and payable and after the expiration of all grace or cure periods,
if any, and all extensions or waivers, if any, and should such failure to pay continue, or should
any other Event of Default set forth in the Second Amended Credit Agreement occur and be
continuing, or should any
Pledgor fail otherwise to comply with the terms hereof (any of the foregoing an “Event of
Default”), the Agent is given full power and authority, then or at any time thereafter, to sell,
assign and deliver or collect the whole or any part of the Collateral, or any substitute therefor
or any addition thereto, in one or




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more sales, with or without any previous demands or demand of
performance or, to the extent permitted by law, notice or advertisement, in such order as the Agent
may elect; and any such sale may be made either at public or private sale at the Agent’s place of
business or elsewhere, either for cash or upon credit or for future delivery, at such price as the
Agent may reasonably deem fair; and the Agent may be the purchaser of any or all Collateral so sold
and hold the same thereafter in its own right free from any claim of a Pledgor or right of
redemption. Demands of performance, advertisements and presence of property and sale and notice of
sale are hereby waived to the extent permissible by law. Any sale hereunder may be conducted by an
auctioneer or any officer or agent of the Agent. Pledgors recognize that the Agent may be unable
to effect a public sale of the Collateral by reason of certain prohibitions contained in the
Securities Act of 1933, as amended (the “Securities Act”), and applicable state law, and may be
otherwise delayed or adversely affected in effecting any sale by reason of present or future
restrictions thereon imposed by Governmental Authorities, and that as a consequence of such
prohibitions and restrictions the Agent may be compelled (i) to resort to one or more private sales
to a restricted group of purchasers who will be obliged to agree, among other things, to acquire
the stock for their own account, for investment and not with a view to the distribution or resale
thereof, (ii) to seek regulatory approval of any proposed sale or sales, or (iii) to limit the
amount of Collateral sold to any Person or group. Each Pledgor agrees and acknowledges that
private sales so made may be at prices and upon terms less favorable to Pledgors than if such
Collateral was sold either at public sales or at private sales not subject to other regulatory
restrictions, and that the Agent has no obligation to delay the sale of any of the Collateral for
the period of time necessary to permit the issuer of such Collateral to register or otherwise
qualify them, even if such issuer would agree to register or otherwise qualify such Collateral for
public sale under the Securities Act or applicable state law. Each Pledgor further agrees, to the
extent permitted by applicable law, that the use of private sales made under the foregoing
circumstances to dispose of the Collateral shall be deemed to be dispositions in a commercially
reasonable manner. Each Pledgor hereby acknowledges that a ready market may not exist for the
Pledged Interests if such Pledged Interests is not traded on a national securities exchange or
quoted on an automated quotation system and in such event the Pledged Interests may be sold for an
amount less than a pro rata share of the fair market value of the issuer’s assets minus its
liabilities. In addition to the foregoing, the Secured Parties may exercise such other rights and
remedies as may be available under the Loan Documents, at law (including, without limitation, the
UCC) or in equity.




     5. Proceeds of Sale.



          The proceeds of the sale of any of the Collateral and all sums received or collected from or
on account of such Collateral shall first be applied to the payment of expenses incurred or paid by
the Agent in connection with any sale, transfer or delivery of the Collateral, then to the payment
of any other costs, charges, reasonable attorneys’ fees or expenses mentioned herein, and then in
accordance with Section 3.9 of the Second Amended Credit Agreement. The Agent shall, upon
satisfaction in full of all such Secured Obligations (including cash collateralization of all
Letters of Credit) and termination of the Commitments, pay any balance to Pledgors.




     6. Presentments, Etc.



          The Agent shall not be under any duty or obligation whatsoever to make or give any
presentments, demands for performances, notices of nonperformance, protests, notice of protest or
notice of dishonor in connection with any obligations or evidences of indebtedness held thereby as
collateral, or in
connection with any obligations or evidences of indebtedness which constitute in whole or in
part the Secured Obligations.




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     7. Attorney-in-Fact.



          Each Pledgor hereby appoints the Agent as such Pledgor’s attorney-in-fact for the purposes of
carrying out the provisions of this Agreement and taking any action and executing any instrument
which the Agent may deem necessary or advisable to accomplish the purposes hereof, which
appointment is irrevocable and coupled with an interest; provided that the Agent shall have
and may exercise rights under this power of attorney only upon the occurrence and during the
continuance of a Default or an Event of Default. Without limiting the generality of the foregoing,
upon the occurrence and during the continuance of a Default or an Event of Default, the Agent shall
have the right and power to receive, endorse and collect all checks and other orders for the
payment of money made payable to such Pledgor representing any dividend, payment, or other
distribution payable or distributable in respect to the Collateral or any part thereof and to give
full discharge for the same.




     8. Absolute Rights and Obligations.



          All rights of the Agent and the other Secured Parties, and all obligations of the Pledgors
hereunder, shall be absolute and unconditional irrespective of:




          8.1. any lack of validity or enforceability of the Second Amended Credit Agreement, the
Subsidiary Guaranty, any other Loan Document or any other agreement or instrument relating to any
of the Secured Obligations;




          8.2. any change in the time, manner or place of payment of, or in any other term of, all or
any of the Obligations, or any other amendment or waiver of or any consent to any departure from
the Second Amended Credit Agreement, the Subsidiary Guaranty, any other Loan Document or any other
agreement or instrument relating to any of the Secured Obligations;




          8.3. any exchange, release or non-perfection of any other collateral, or any release or
amendment or waiver of or consent to departure from the Subsidiary Guaranty, any guaranty, or any
other security for all or any of the Secured Obligations; or




          8.4. any other circumstances which might otherwise constitute a defense available to, or a
discharge of, any Pledgor in respect of the Secured Obligations or of this Agreement.




     9. Waivers by Pledgors.



          Each Pledgor waives (to the extent permitted by applicable law) (a) any right to require any
Secured Party or any other obligee of the Secured Obligations to (i) proceed against the Borrower,
any Guarantor or any other Person, (ii) proceed against or exhaust any Collateral as defined in the
Second Amended Credit Agreement, or (iii) pursue any other remedy in its power and (b) any defense
arising by reason of any disability or other defense of the Borrower, any Guarantor or any other
Person, or by reason of the cessation from any cause whatsoever of the liability of the Borrower,
any Guarantor or any other Person. Until termination of this Agreement, no Pledgor shall have any
right of subrogation, and each Pledgor waives any right to enforce any remedy which any Secured
Party or any other obligee of the Secured Obligations now has or may hereafter have against any
other Person and waives (to the extent
permitted by applicable law) any benefit of and any right to participate in any collateral or
security whatsoever now or hereafter held by the Agent for the benefit of the Secured Parties.
Each Pledgor authorizes any Secured Party and any other obligee of the Secured Obligations without
notice (except notice required by applicable law) or demand and without affecting such Pledgor’s
liability hereunder or





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under the Loan Documents from time to time to (i) take and hold security,
other than the Collateral herein described, for the payment of such Secured Obligations or any part
thereof, and exchange, enforce, waive and release the Collateral herein described or any part
thereof or any such other security; and (ii) apply such Collateral or other security and direct the
order or manner of sale thereof as the Agent may determine.




          The Agent may at any time deliver (without representation, recourse or warranty) the
Collateral or any part thereof to a Pledgor free and clear of all Liens and the receipt thereof by
such Pledgor shall be a complete and full acquittance for the Collateral so delivered, and the
Secured Parties shall thereafter be discharged from any liability or responsibility therefor.




     10. Dividends and Voting Rights.



          10.1. All dividends and other distributions with respect to any of the Pledged Interests shall
be subject to the pledge hereunder except, during any period that no Default or Event of Default
exists, for dividends, if any, permitted to be retained by a Pledgor under the Second Amended
Credit Agreement. So long as no Default or Event of Default shall have occurred and be continuing,
any such dividends may be retained by such Pledgor free from any Liens hereunder to the extent
permitted by the Second Amended Credit Agreement. Following the occurrence and during the
continuance of any Default or Event of Default, all dividends shall be promptly delivered to the
Agent (together with stock powers or instruments of assignment duly executed in blank affixed to
any capital stock or other negotiable document or instrument so distributed) to be held, released
or disposed of by it hereunder or, at the option of the Agent, to be applied to the Secured
Obligations hereby secured as they become due.




          10.2. So long as no Event of Default shall have occurred and be continuing, the registration
of the Collateral in the name of a Pledgor shall not be changed and such Pledgor shall be entitled
to exercise all voting and other rights and powers pertaining to the Collateral for all purposes
not inconsistent with the terms hereof.




          10.3. Upon the occurrence and during the continuance of any Event of Default, at the option of
the Agent, all rights of each Pledgor to receive and retain dividends upon the Collateral shall
cease and shall thereupon be vested in the Agent for the benefit of the Lenders.




          10.4. Upon the occurrence and during the continuance of an Event of Default, at the option of
the Agent, all rights of each Pledgor to exercise the voting or consensual rights and powers which
it is otherwise authorized to exercise shall cease and the Agent may thereupon (but shall not be
obligated to) cause such Collateral to be registered in the name of the Agent or its nominee or
agent for the benefit of Secured Parties and exercise such voting or consensual rights and powers
as appertain to ownership of such Collateral, and to that end each Pledgor hereby appoints the
Agent as its proxy, with full power of substitution, to vote and exercise all other rights as a
shareholder with respect to such Pledged Interests hereunder upon the occurrence and during the
continuance of an Event of Default, which proxy is coupled with an interest and is irrevocable
prior to termination of this Agreement, and each Pledgor hereby agrees to provide such further
proxies as the Agent may request; provided, however, that the Agent in its
discretion may from time to time refrain from exercising, and shall not be obligated to exercise,
any such voting or consensual rights or such proxy.




     11. Power of Sale.


Until termination of this Agreement, the power of sale and other rights, powers and remedies
granted to




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the Agent for the benefit of Secured Parties hereunder shall continue to exist and may
be exercised by the Agent at any time and from time to time, upon the occurrence and during the
continuance of an Event of Default, irrespective of the fact that any Secured Obligations or any
part thereof may have become barred by any statute of limitations or that the liability of a
Pledgor may have ceased.




     12. Other Rights.


The rights, powers and remedies given to the Agent for the benefit of Secured Parties by this
Agreement shall be in addition to all rights, powers and remedies given to any Secured Party by
virtue of any statute or rule of law. Any forbearance or failure or delay by the Agent in
exercising any right, power or remedy hereunder shall not be deemed to be a waiver of such right,
power or remedy, and any single or partial exercise of any right, power or remedy hereunder shall
not preclude the further exercise thereof; and every right, power and remedy of the Secured Parties
shall continue in full force and effect until such right, power or remedy is specifically waived by
the Required Lenders by an instrument in writing.




     13. Further Assurances.


Each Pledgor agrees at its own expense to do such further acts and things, and to execute and
deliver such additional conveyances, assignments, financing statements, agreements and instruments,
as the Agent may at any time reasonably request in connection with the administration or
enforcement of this Agreement or related to the Collateral or any part thereof or in order better
to assure and confirm unto the Agent its rights, powers and remedies for the benefit of Secured
Parties hereunder. Each Pledgor hereby consents and agrees that the issuers of or obligors in
respect of the Collateral shall be entitled to accept the provisions hereof as conclusive evidence
of the right of the Agent, on behalf of Secured Parties, to exercise its rights hereunder with
respect to the Collateral, notwithstanding any other notice or direction to the contrary heretofore
or hereafter given by such Pledgor or any other Person to any of such issuers or obligors.




     14. Binding Agreement; Assignment.



          This Agreement, and the terms, covenants and conditions hereof, shall be binding upon and
inure to the benefit of the parties hereto, and to their respective successors and assigns, except
that no Pledgor shall be permitted to assign this Agreement or any interest herein or in the
Collateral, or any part thereof, or otherwise pledge, encumber or grant any option with respect to
the Collateral, or any part thereof, or any cash or property held by the Agent as Collateral under
this Agreement. All references herein to a Secured Party shall include any successor of such
party, including, without limitation, any obligees from time to time of the Secured Obligations.




     15. Severability.



          In case any security interest or other right or Lien of any Secured Party or any provision
hereof shall be held to be invalid, illegal or unenforceable, such invalidity, illegality or
unenforceability shall not affect any other Lien, security interest or other right granted hereby
or provision hereof.




     16. Counterparts.


This Agreement may be executed in any number of counterparts and all the counterparts taken
together shall be deemed to constitute one and the same instrument.




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     17. Termination.


This Agreement and all Liens granted by the Pledgors hereunder shall terminate without delivery of
any instrument or performance of any act by any party on the date that all of the Secured
Obligations have been paid in full (or, in the case of outstanding Letters of Credit, cash
collateralized in accordance with the Second Amended Credit Agreement) and the Second Amended
Credit Agreement and all Commitments thereunder have terminated. Upon such termination of this
Agreement, the Agent shall, at the sole expense of the Pledgors, deliver to each Pledgor the
certificates evidencing their respective shares of Pledged Interests (and any other property
received as a dividend or distribution or otherwise in respect of such Pledged Interests), together
with any cash then constituting the Collateral, not then sold or otherwise disposed of in
accordance with the provisions hereof and take such further actions as may be necessary to effect
the same. Notwithstanding any termination of this Agreement, all of the indemnification provisions
of this Agreement and the other Loan Documents shall survive and continue in full force and effect.




     18. Indemnification.


Each Pledgor hereby covenants and agrees to pay, indemnify, and hold the Agent and each Lender
harmless from and against any and all other out-of-pocket liabilities, costs, expenses or
disbursements of any kind or nature whatsoever arising in connection with any claim or litigation
by any Person resulting from the execution, delivery, enforcement, performance and administration
of this Agreement or the Loan Documents, or the transactions contemplated hereby or thereby, or in
any respect relating to the Collateral or any transaction pursuant to which such Pledgor has
incurred any Secured Obligation (all the foregoing, collectively, the “Indemnified Liabilities”);
provided, however, that the Pledgors shall have no obligation hereunder to a
Secured Party with respect to Indemnified Liabilities arising from the willful misconduct or gross
negligence of such Secured Party. The agreements in this subsection shall survive termination of
this Agreement.




19. Notices.



All notices shall be sent in the manner and to the addresses specified in the Second Amended Credit
Agreement and shall be deemed to have been received and be effective as and when specified in the
Second Amended Credit Agreement.




     20. Governing Law; Waivers.



          (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.




          (b) EACH PARTY HEREBY EXPRESSLY AND IRREVOCABLY AGREES AND CONSENTS THAT ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREIN
MAY BE INSTITUTED IN ANY STATE OR FEDERAL COURT SITTING IN THE STATES OF NEW YORK, FLORIDA OR
GEORGIA, AND, BY THE EXECUTION AND DELIVERY OF THIS AGREEMENT, EXPRESSLY WAIVES ANY OBJECTION THAT
IT MAY HAVE NOW OR HEREAFTER TO THE LAYING OF THE VENUE OR TO THE JURISDICTION OF ANY SUCH SUIT,
ACTION OR PROCEEDING, AND IRREVOCABLY SUBMITS GENERALLY AND UNCONDITIONALLY TO THE JURISDICTION OF
ANY SUCH COURT IN ANY SUCH




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SUIT, ACTION OR PROCEEDING.




          (c) EACH PARTY AGREES THAT SERVICE OF PROCESS MAY BE MADE BY PERSONAL SERVICE OF A COPY OF THE
SUMMONS AND COMPLAINT OR OTHER LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING, OR BY
REGISTERED OR CERTIFIED MAIL (POSTAGE PREPAID) TO THE ADDRESS OF SUCH PARTY SPECIFIED IN
SECTION 19 HEREOF OR BY ANY OTHER METHOD OF SERVICE PROVIDED FOR UNDER THE APPLICABLE LAWS
IN EFFECT IN THE STATES OF NEW YORK, FLORIDA OR GEORGIA.




          (d) NOTHING CONTAINED IN SUBSECTIONS (b) OR (c) HEREOF SHALL PRECLUDE ANY
PARTY FROM BRINGING ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
THE OTHER LOAN DOCUMENTS IN THE COURTS OF ANY PLACE WHERE ANY OTHER PARTY OR ANY OF SUCH PARTY’S
PROPERTY OR ASSETS MAY BE FOUND OR LOCATED. TO THE EXTENT PERMITTED BY THE APPLICABLE LAWS OF ANY
SUCH JURISDICTION, EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT AND
EXPRESSLY WAIVES, IN RESPECT OF ANY SUCH SUIT, ACTION OR PROCEEDING, THE JURISDICTION OF ANY OTHER
COURT OR COURTS WHICH NOW OR HEREAFTER, BY REASON OF ITS PRESENT OR FUTURE DOMICILE, OR OTHERWISE,
MAY BE AVAILABLE TO IT.




          (e) IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER OR RELATED
TO THIS AGREEMENT OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE
FUTURE BE DELIVERED IN CONNECTION WITH THE FOREGOING, EACH PARTY HEREBY AGREES, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND
NOT BEFORE A JURY AND EACH PARTY HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION THAT IT MAY HAVE THAT EACH ACTION OR PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.




     21. Amendment and Restatement. This Agreement amends and restates the Existing Stock
Pledge and is not intended to create or result in a novation or accord and satisfaction. The terms
of the Existing Stock Pledge, together with all rights, duties, remedies and covenants thereunder
and the grant of each security interest thereunder, shall continue in full force and effect in this
Agreement, which shall constitute the entire understanding of the parties hereto with respect to
the subject matter hereof. This Agreement is intended to confirm and continue the security
interests granted pursuant to the Existing Stock Pledge in the “Collateral” described therein, all
of which security interests shall continue in full force and effect pursuant to this Agreement, and
this Agreement is not intended to grant a new security interest in any Collateral with respect to
which a security interest was previously granted by Pledgors pursuant to the Existing Stock Pledge.



     22. Additional Shares and Interests.



          If a Pledgor shall acquire or hold (a) any additional shares of capital stock of, or other
partnership, ownership or equity interest in, any Person listed on Schedule I hereto or (b)
any shares of capital stock of, or any other partnership, ownership or equity interest in, any
Subsidiary not listed on Schedule I hereto, which stock or partnership or other ownership
or equity interests are required to be





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subject to a Pledge Agreement pursuant to the terms of
Section 7.24 of the Second Amended Credit Agreement (any such shares or other ownership or equity
interests described in clauses (a) or (b) above being referred to herein as the “Additional
Interests”), the Pledgor shall deliver to the Agent for the benefit of the Secured Parties (i) a
revised Schedule I hereto reflecting the ownership and pledge of such Additional Interests
and (ii) a Pledge Agreement Supplement in the form of Exhibit A hereto with respect to such
Additional Interests duly completed and signed by the Pledgor. The Pledgor shall comply with the
requirements of this Section 21 concurrently with the acquisition of any such Additional
Interests in the case of shares and other ownership or equity interests described in clause (a)
above, and within the applicable time periods specified in the Second Amended Credit Agreement with
respect to shares and other partnership, ownership or equity interests described in clause (b)
above.



IN WITNESS WHEREOF, the parties have duly executed this Agreement on the day and year first written
above.




	 	 	 	 	 
	 	PLEDGORS:





APPLICA INCORPORATED,

a Florida corporation 	 
	 	By:  	     /s/ Terry Polistina
 	 
	 	Name:	  	Terry Polistina 	 
	 	Title:	  	Senior Vice President and Chief Financial Officer 	 
	 
	 	PPC INDUSTRIES LTD.,

a British Virgin Islands company

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	Name:	  	Lisa R. Carstarphen 	 
	 	Title:	  	Corporate Secretary 	 
	 
	 	WD DELAWARE, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	Name:	  	Lisa R. Carstarphen 	 
	 	Title:	  	Corporate Secretary 	 
	 
	 	WINDMERE HOLDINGS CORPORATION,

a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	Name:	  	Lisa R. Carstarphen 	 
	 	Title:	  	Corporate Secretary 	 
	 



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	 	HP DELAWARE, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	Name:	  	Lisa R. Carstarphen 	 
	 	Title:	  	Corporate Secretary 	 
	 
	 	HPG LLC, a Delaware limited liability company

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	Name:	  	Lisa R. Carstarphen 	 
	 	Title:	  	Corporate Secretary 	 
	 
	 	APPLICA MEXICO HOLDINGS, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Lisa R. Carstarphen
 	 
	 	Name:	  	Lisa R. Carstarphen 	 
	 	Title:	  	Corporate Secretary 	 
	 
	 	AGENT:





BANK OF AMERICA, N. A., as Agent for the Lenders

 	 
	 	By:  	/s/ Sherry D. Lail
 	 
	 	Name:	  	Sherry D. Lail 	 
	 	Title:	  	Senior Vice President 	 
	 








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