Document:

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                                                                    EXHIBIT 10.3

                               GUARANTY AGREEMENT

         GUARANTY, dated as of July 15, 2003 (this "GUARANTY"), made by the
parties set forth on the signature pages hereto as Guarantors (each a
"GUARANTOR" and, collectively, the "GUARANTORS"), in favor of Fleet Capital
Corporation ("Fleet"), individually as a Revolving Credit Lender and as
administrative agent and collateral agent (as administrative agent and
collateral agent, together with any successor, the "ADMINISTRATIVE AGENT") (i)
for the lenders now or hereafter being parties 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, is referred to
hereinafter individually as a "Lender" and collectively as the "Lenders") (ii)
Silver Point Finance LLC as agent for the Term Loan B Lenders ("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,
"ISSUING BANK"), and (iv) each Revolving Credit Lender or Affiliate thereof to
whom Product Obligations (as such term is defined in the Loan Agreement) are
owed (together with the Administrative Agent, the Lenders, the Term Loan B Agent
and the Issuing Bank, the "SECURED PARTIES").

         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; and

         WHEREAS, each of the Guarantors shall derive substantial benefits from
the financial accommodations to be provided under the Loan Agreement; and

         WHEREAS, as a condition to the Lenders making any Loans and the Issuing
Bank issuing or the Administrative Agent causing the issuance of any Letters of
Credit under the Loan Agreement, the Lenders, the Administrative Agent and the
Term Loan B Agent have required the execution and delivery of this Guaranty by
the Guarantors.

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         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 Guarantors hereby agrees with the Administrative Agent for the ratable
benefit of the Secured Parties 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.

         2. GUARANTY. (a) Each Guarantor hereby, unconditionally and
irrevocably, jointly and severally with all other Guarantors, guarantees to the
Secured Parties the prompt and complete payment and performance when due of all
present and future Obligations, whether at stated maturity, by acceleration or
otherwise (the "GUARANTEED OBLIGATIONS"); PROVIDED, HOWEVER, that anything
herein or in any other Loan Documents to the contrary notwithstanding, the
maximum liability of any Guarantor hereunder and under the other Loan Documents
shall in no event exceed an amount equal to the largest amount that would not
render such Guarantor's obligations hereunder subject to avoidance under Section
548 of the Federal Bankruptcy Code or any equivalent provision of federal law or
the law of any state.

                  (b) The guaranty contained herein is an absolute,
unconditional and continuing guaranty of the full and punctual payment and
performance of the Guaranteed Obligations, is not a guaranty of collection, and
is in no way conditioned upon any requirement that the Administrative Agent on
behalf of the Secured Parties or any of the Secured Parties first collect or
attempt to collect the Guaranteed Obligations or any portion thereof from the
Borrowers or any of their Subsidiaries or any other guarantor or resort to any
security or other means of obtaining payment of any of the Guaranteed
Obligations. Payments by the Guarantors under this Guaranty may be required to
be made on any number of occasions.

                  (c) No payment or payments made by any of the Borrowers or any
of their Subsidiaries or any other Person or received or collected by the
Administrative Agent or any Secured Party from any of the Borrowers or any of
their Subsidiaries or any other Person by virtue of any action or proceeding or
any setoff or appropriation or application at any time or from time to time in
reduction of or in payment of the Guaranteed Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of any Guarantor
hereunder (other than payment in full in cash of the Guaranteed Obligations or,
in the case of Guaranteed Obligations other than to Term Loan B Agent and Term
Loan B Lenders, cash collateralization thereof (including without limitation by
way of letter of credit) to satisfaction of Administrative Agent) which shall,
notwithstanding any such payment indefeasible or payments other than payments in
cash made by such Guarantor in respect of the Guaranteed Obligations or payments
in cash received or collected from such Guarantor in respect of the Guaranteed
Obligations or cash collateralization to the extent described above, remain
liable for the Guaranteed Obligations, until the termination of this Guaranty in
accordance with Section 6 hereof.

                  (d) Each Guarantor agrees that whenever, at any time, or from
time to time, it shall make any payment to the Administrative Agent on account
of its liability hereunder, it will notify the Administrative Agent and the
Secured Parties in writing that such payment is made under this Guaranty for
such purpose.

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         3. RIGHT OF SET OFF AND SHARING OF PAYMENTS. In addition to any rights
now or hereafter granted under applicable law and not by way of limitation of
any such rights, during the continuance of any Event of Default, each Lender is
hereby authorized by Guarantors at any time or from time to time, with prior
written consent of Administrative Agent and with reasonably prompt subsequent
notice to Borrower Representative (any prior or contemporaneous notice to
Guarantors being hereby expressly waived) to set off and to appropriate and to
apply any and all (i) balances held by such Lender at any of its offices for the
account of any Guarantor or any of its Subsidiaries (regardless of whether such
balances are then due to such Guarantor or its Subsidiaries), and (ii) other
property at any time held or owing by such Lender to or for the credit or for
the account of any Guarantor or any of its Subsidiaries, against and on account
of any of the Obligations. Any Lender exercising a right to set off shall comply
with the provisions of Section 3.10 of the Loan Agreement. Each Guarantor
agrees, to the fullest extent permitted by law, that any Lender may exercise its
right to set off with respect to amounts in excess the amount to which such
Lender is entitled at such time pursuant to the terms of this Guaranty, and each
such Lender, upon doing so, shall deliver the entire amount set off to
Administrative Agent, for the benefit of Lenders, in accordance with the terms
of this Guaranty.

         4. SUBORDINATION OF SUBROGATION, ETC. Notwithstanding anything to the
contrary in this Guaranty or in any other Loan Document, and except as set forth
in Section 12.7 of the Loan Agreement, each Guarantor hereby expressly and
irrevocably subordinates to payment of the Guaranteed Obligations any and all
rights at law or in equity to subrogation, reimbursement, exoneration,
contribution, indemnification or set off and any and all defenses available to a
surety, guarantor or accommodation co-obligor until the Guaranteed Obligations
are indefeasibly paid in full in cash other than any Guaranteed Obligations
(excluding Guaranteed Obligations to Term Loan B Agent and Term Loan B Lenders)
that have been cash collateralized or covered by a letter of credit satisfactory
to Administrative Agent. Each Guarantor acknowledges and agrees that this
subordination is intended to benefit the Secured Parties and shall not limit or
otherwise affect such Guarantor's liability hereunder or the enforceability of
this Section 4, and that Secured Parties and their respective successors and
assigns are intended third party beneficiaries of the waivers and agreements set
forth in this Section 4.

         5. AMENDMENTS, ETC., WITH RESPECT TO THE GUARANTEED OBLIGATIONS. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor, and without notice to or further
assent by any Guarantor, any demand for payment of any of the Guaranteed
Obligations made by the Administrative Agent or any Secured Party, as the case
may be, may be rescinded by the Administrative Agent or such Secured Party, as
the case may be, and any of the Guaranteed Obligations continued, and the
Guaranteed Obligations, or the liability of any other party upon or for any part
thereof, or any collateral security or guarantee therefor or right of setoff
with respect thereto, may, from time to time, in whole or in part, be renewed,
extended, amended, modified, accelerated, compromised, waived, surrendered or
released by the Administrative Agent or any Secured Party, as the case may be,
and the Loan Agreement and the other Loan Documents, and any other agreement,
instrument or document executed in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Administrative
Agent and the Secured Parties, as the case may be, may deem advisable from time

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to time, and any guarantee or right of setoff at any time held by the
Administrative Agent or any Secured Party, as the case may be, for the payment
of the Guaranteed Obligations may be sold, exchanged, waived, surrendered or
released. When making any demand hereunder against any Guarantor, the
Administrative Agent or any Secured Party, as the case may be, may, but shall be
under no obligation to, make a similar demand on any of the Borrowers or their
Subsidiaries, and any failure by the Administrative Agent or such Secured Party,
as the case may be, to make any such demand or to collect any payments from any
of the Borrowers or their Subsidiaries or any release of any of the Borrowers or
their Subsidiaries shall not impair or affect the rights and remedies, express
or implied, or as a matter of law, of the Administrative Agent or such Secured
Party, as the case may be, against any Guarantor. For the purposes hereof
"demand" shall include the commencement and continuance of any legal
proceedings.

         6. GUARANTY ABSOLUTE AND UNCONDITIONAL; TERMINATION. Each Guarantor
waives any and all notice of the creation, renewal, extension or accrual of any
of the Guaranteed Obligations and notice of or proof of reliance by the
Administrative Agent and the Secured Parties, as the case may be, upon this
Guaranty or acceptance of this Guaranty; the Guaranteed Obligations, and any of
them, shall conclusively be deemed to have been created, contracted or incurred
in reliance upon this Guaranty; and all dealings between the Borrowers or their
Subsidiaries, on the one hand, and the Administrative Agent and the Secured
Parties, as the case may be, on the other, shall likewise be conclusively
presumed to have been had or consummated in reliance upon this Guaranty. Each
Guarantor waives diligence, presentment, protest, demand for payment and notice
of default or nonpayment to or upon the Borrowers or their Subsidiaries or
itself or any other Guarantor with respect to the Guaranteed Obligations. This
Guaranty shall be construed as a continuing, absolute and unconditional guaranty
of payment without regard to (a) any defense, setoff or counterclaim (other than
a defense of payment or performance) which may at any time be available to or be
asserted by the Borrowers or their Subsidiaries against the Administrative Agent
or any Secured Party, as the case may be, (b) the genuineness, validity,
regularity, enforceability or any future amendment of, or change in, this
Guaranty, any other Loan Document or any other agreement, document or instrument
to which any Guarantor is or may become a party, (c) the absence of any action
to enforce this Guaranty (including this Section 6) or any other Loan Document
or the waiver or consent by Administrative Agent and Lenders with respect to any
of the provisions thereof, (d) the existence, value or condition of, or failure
to perfect its Lien against, any security for the Guaranteed Obligations or any
action, or the absence of any action, by Administrative Agent, Term Loan B Agent
or Lenders in respect thereof (including the release of any such security), (e)
the insolvency of any Borrower, any Subsidiary of any Borrower or any Guarantor,
or (f) any other circumstance whatsoever (with or without notice to or knowledge
of the Borrowers or their Subsidiaries) which constitutes, or might be construed
to constitute, an equitable or legal discharge of the Borrowers or their
Subsidiaries for the Guaranteed Obligations, or of itself or any other Guarantor
under this Guaranty, in bankruptcy or in any other instance. When pursuing its
rights and remedies hereunder against any Guarantor, the Administrative Agent or
any Secured Party, as the case may be, may, but shall be under no obligation to,
pursue such rights and remedies as it may have against the Borrowers or their
Subsidiaries or any other Person or guaranty for the Guaranteed Obligations or
any right of setoff with respect thereto, and any failure by the Administrative
Agent or any Secured Party, as the case may be, to pursue such other rights or
remedies or to collect any payments from the Borrowers or their Subsidiaries or
any such other Person or to realize upon any such guaranty or to exercise any
such right of setoff, or any release of the Borrowers or their Subsidiaries
thereof or any such other Person or any guaranty or right of setoff, shall not
relieve any Guarantor of any liability hereunder, and shall not impair or affect
the rights and remedies, whether express, implied or available as a matter of
law, of the Administrative Agent or such Secured Party, as the case may be,
against any Guarantor. Subject to the provisions of Section 7 hereof, this
Guaranty shall remain in full force and effect and be binding in accordance with
and to the extent of its terms upon each Guarantor and the successors and

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assigns thereof, and shall inure to the benefit of the Administrative Agent and
the Secured Parties, as the case may be, and their successors, endorsees,
transferees and assigns, until the (x) payment in full in cash other than any
Guaranteed Obligations (excluding Guaranteed Obligations to Term Loan B Agent
and Term Loan B Lenders) that have been cash collateralized or covered by a
letter of credit satisfactory to Administrative Agent and termination of all
Guaranteed Obligations, (y) the expiration or cancellation of all Letters of
Credit and LC and Acceptance Guaranty and (z) the expiration or termination of
the Revolving Credit Commitment and the expiration or termination of any further
commitment of Issuing Bank to open or the Administrative Agent to cause to be
opened Letters of Credit (or the payment in full or cash collateralization
(including without limitation by way of letter of credit) to satisfaction of
Administrative Agent of all obligations in respect of Letters of Credit).
Subject to the provisions of Section 7 hereof, upon the payment in full in cash
other than any Guaranteed Obligations (excluding Guaranteed Obligations to Term
Loan B Agent and Term Loan B Lenders) that have been cash collateralized or
covered by a letter of credit satisfactory to Administrative Agent and
termination of all Guaranteed Obligations, the expiration or cancellation of all
Letters of Credit and LC and Acceptance Guaranty and the expiration or
termination of the Revolving Credit Commitment and the expiration or termination
of any further commitment of Issuing Bank to open or the Administrative Agent to
cause to be opened Letters of Credit (or the payment in full of all obligations
in respect of Letters of Credit), this Guaranty shall terminate.

         7. REINSTATEMENT. This Guaranty shall continue to be effective, or be
reinstated, as the case may be, if at any time the payment, or any part thereof,
of any of the Guaranteed Obligations is rescinded or must otherwise be restored
or returned by the Administrative Agent or any Secured Party, as the case may
be, including, by way of example, but not in limitation of the foregoing, upon
the insolvency, bankruptcy, dissolution, liquidation or reorganization of any
Borrower or any of their Subsidiaries or upon or as a result of the appointment
of a receiver, intervenor or conservator of, or trustee or similar officer for,
any Borrower or any of their Subsidiaries or any substantial part of their
respective property, or otherwise, all as though such payments had not been
made.

         8. EXPENSES. The Guarantors will, upon demand, pay the Administrative
Agent for any and all reasonable out-of-pocket costs, sums and expenses which
the Administrative Agent may pay or incur pursuant to the provisions of this
Guaranty or in enforcing this Guaranty or in enforcing payment of the Guaranteed
Obligations or otherwise in connection with the provisions hereof, including,
but not limited to, all reasonable filing or recording fees, court costs,
collection charges, travel expenses, computer fees, telephone fees, duplicating
fees and attorneys' fees. All of the foregoing, together with interest thereon
as specified in Section 11 hereof, shall be part of the Guaranteed Obligations
and be payable on demand.

         9. PAYMENTS. Each Guarantor hereby, jointly and severally, with all
other Guarantors, agrees that it will make payments in respect of the Guaranteed
Obligations upon demand therefor to the Administrative Agent, without setoff,
deduction, withholding or counterclaim, by wire transfer in immediately

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available funds at the Administrative Agent's address set forth on the signature
page hereto or at such other place as the Administrative Agent may direct from
time to time by notice to the Guarantors.

         10. SEVERABILITY. Any provision of this Guaranty which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

         11. INTEREST. All amounts which have become due and payable from time
to time by any Guarantor hereunder shall constitute part of the Guaranteed
Obligations and shall bear interest and be payable at the interest rate
applicable to Base Rate Loans comprising Revolving Credit Loans or, in the case
of amounts relating to the Term Loan B, the rate applicable to the Term Loan B,
at such time made under the Loan Agreement.

         12. PARAGRAPH HEADINGS. The captions of the various sections and
paragraphs of this Guaranty have been inserted only for the purposes of
convenience; such captions are not a part of this Guaranty and shall not be
deemed in any manner to modify, explain, enlarge or restrict any of the
provisions of this Guaranty.

         13. NO WAIVER; CUMULATIVE REMEDIES. Neither the Administrative Agent
nor any Secured Party, as the case may be, shall by an act (except by a written
instrument pursuant to Section 14 hereof), delay, indulgence, omission or
otherwise, be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default or in any breach of any of the
terms and conditions hereof. No failure to exercise, nor any delay in
exercising, on the part of the Administrative Agent or any Secured Party, as the
case may be, any right, power or privilege hereunder shall operate as a waiver
thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by the Administrative Agent or
any Secured Party, as the case may be, of any right or remedy hereunder on any
one occasion shall not be construed as a bar to any right or remedy which the
Administrative Agent or such Secured Party, as the case may be, would otherwise
have on any future occasion. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any
rights or remedies provided by law.

         14. WAIVERS AND AMENDMENTS; SUCCESSORS AND ASSIGNS. None of the terms
or provisions of this Guaranty may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by each Guarantor and the
Administrative Agent (with the approval of the requisite number of Lenders as
required under the Loan Agreement). This Guaranty shall be binding upon the
successors and assigns of the Guarantors and shall inure to the benefit of the
Administrative Agent and the Secured Parties.

         15. ADDRESS FOR NOTICES. Except as otherwise provided in the Loan
Agreement, all notices, requests and demands to or upon a party hereto, to be
effective, shall be in writing, return receipt requested, by personal delivery
against receipt, by overnight courier or by facsimile and, unless otherwise

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expressly provided herein, shall be deemed to have been validly served, given,
delivered or received immediately when delivered against receipt, one Business
Day after deposit with an overnight courier or, in the case of facsimile notice,
when sent, addressed as follows:.

         If to Administrative Agent:     Fleet Capital Corporation
                                         One South Wacker Drive
                                         Suite 1400.
                                         Chicago, Illinois  60606
                                         Attention:  Kristina Lee
                                         Facsimile No.:  312-332-6537

         With a copy to:                 Winston & Strawn
                                         200 Park Avenue
                                         New York, NY 10166
                                         Attention: William D. Brewer
                                         Facsimile No.:  212-294-4700

         If to Term Loan B Agent:        Silver Point Finance LLC
                                         600 Steamboat Road
                                         Greenwich, CT  06830
                                         Attention:  Zac Zeitlin
                                         Facsimile No.:  203-618-2669

         With a copy to:                 Schulte, Roth & Zabel LLP
                                         919 Third Avenue
                                         New York, New York  10022
                                         Attention:  Frederic L. Ragucci, Esq.
                                         Facsimile No.:  212-593-5955

         If to Borrowers:                Jacuzzi Brands, Inc.
                                         Phillips Tower - West Tower
                                         777 South Flagler Drive
                                         Suite 1108
                                         West Palm Beach, FL 33401
                                         Attention:  Chief Financial Officer
                                         Facsimile No.:  561-514-3888

         With copies to                  Jacuzzi Brands, Inc.
                                         Phillips Tower - West Tower
                                         777 South Flagler Drive
                                         Suite 1108
                                         West Palm Beach, FL 33401
                                         Attention:  Steven C. Barre
                                         Facsimile No.: 561-514-3888

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                                         and

                                         Davis Polk & Wardwell
                                         450 Lexington Avenue
                                         New York, NY 10017
                                         Attention:  Tiziana M. Tabucchi
                                         Facsimile No.:  212-450-4800

or to such other address as each party may designate for itself by notice given
in accordance with this Section 15 or the Loan Agreement.

16. GOVERNING LAW; CONSENT TO FORUM. THIS GUARANTY HAS BEEN NEGOTIATED, EXECUTED
AND DELIVERED IN AND SHALL BE DEEMED TO HAVE BEEN MADE IN NEW YORK, NEW YORK.
THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE 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
GUARANTORS, ADMINISTRATIVE AGENT OR ANY SECURED PARTY, EACH GUARANTOR HEREBY
CONSENTS AND AGREES THAT THE SUPREME COURT OF NEW YORK COUNTY, NEW YORK, 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 GUARANTORS, ON THE ONE HAND, AND
ADMINISTRATIVE AGENT, ISSUING BANK, TERM LOAN B AGENT OR ANY OTHER SECURED
PARTIES, ON THE OTHER HAND, PERTAINING TO THIS GUARANTY OR TO ANY MATTER ARISING
OUT OF OR RELATED TO THIS GUARANTY. EACH GUARANTOR EXPRESSLY SUBMITS AND
CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY
SUCH COURT, AND EACH GUARANTOR HEREBY WAIVES ANY OBJECTION WHICH SUCH GUARANTOR
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 GUARANTOR 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 GUARANTOR AT THE ADDRESS
SET FORTH IN THIS GUARANTY 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 GUARANTY SHALL BE DEEMED
OR OPERATE TO AFFECT THE RIGHT OF ADMINISTRATIVE AGENT OR ANY SECURED PARTY TO
SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, OR TO PRECLUDE THE
ENFORCEMENT BY ADMINISTRATIVE AGENT OR ANY SECURED PARTY OF ANY JUDGMENT OR
ORDER OBTAINED IN SUCH FORUM OR THE TAKING OF ANY ACTION UNDER THIS GUARANTY TO
ENFORCE SAME IN ANY OTHER APPROPRIATE FORUM OR JURISDICTION.

         17. WAIVERS BY GUARANTORS. EACH GUARANTOR WAIVES (I) THE RIGHT TO TRIAL
BY JURY (WHICH ADMINISTRATIVE AGENT AND EACH SECURED PARTY HEREBY ALSO WAIVES)

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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 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 OR ANY
SECURED PARTY ON WHICH SUCH GUARANTOR MAY IN ANY WAY BE LIABLE AND HEREBY
RATIFIES AND CONFIRMS WHATEVER ADMINISTRATIVE AGENT OR ANY SECURED PARTY MAY DO
IN THIS REGARD; (III) NOTICE PRIOR TO ADMINISTRATIVE AGENT'S TAKING POSSESSION
OR CONTROL OF THE COLLATERAL OR ANY BOND OR SECURITY WHICH 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 GUARANTOR ACKNOWLEDGES THAT THE FOREGOING WAIVERS ARE A
MATERIAL INDUCEMENT TO ADMINISTRATIVE AGENT'S ENTERING INTO THIS GUARANTY, ON
BEHALF OF ITSELF AND THE OTHER SECURED PARTIES, AND THAT ADMINISTRATIVE AGENT
AND EACH SECURED PARTY IS RELYING UPON THE FOREGOING WAIVERS IN ITS FUTURE
DEALINGS WITH EACH GUARANTOR. EACH GUARANTOR 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 AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

         18. OBLIGATIONS JOINT AND SEVERAL. All obligations and liabilities of
the Guarantors hereunder are joint and several.

                            [Signature Pages Follow]

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         IN WITNESS WHEREOF, the undersigned have caused this Guaranty to be
duly executed and delivered as of the date first above written.

                      GUARANTORS:

                      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.
                      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.

                                     - 10 -
<PAGE>

                      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/ David Ritchay
                           ------------------------------------------------
                      Name:  David Ritchay
                            -----------------------------------------------
                      Title: Senior Vice President
                            -----------------------------------------------

                                     - 11 -<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 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]