Document:

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                                                                EXHIBIT 10(xcix)

                                PLEDGE AGREEMENT

         THIS PLEDGE AGREEMENT (this "Pledge Agreement") is entered into as of
December 17, 2002 by and among HAMILTON BEACH/PROCTOR-SILEX, INC., a Delaware
corporation (the "Company"), its U.S. Subsidiaries identified as U.S. Subsidiary
Borrowers on the signature pages hereto and any additional U.S. Subsidiaries of
the Company which become parties hereto from time to time (the "U.S. Subsidiary
Borrowers") (hereinafter, the Company and U.S. Subsidiary Borrowers are
collectively referred to as the "Pledgors" and individually as a "Pledgor"), and
WACHOVIA BANK, NATIONAL ASSOCIATION, in its capacity as the administrative agent
under the Credit Agreement referred to below (in such capacity, the
"Administrative Agent" or the "Agent").

                                    RECITALS

         WHEREAS, pursuant to that certain Credit Agreement dated as of the date
hereof (as amended, modified, extended, renewed or replaced from time to time,
the "Credit Agreement"), among the Company, the other Borrowers identified
therein, the Lenders party thereto from time to time, the Agent and ABN AMRO
Bank N.V., Canada Branch, as Canadian Agent, the U.S. Lenders have agreed to
make U.S. Revolving Loans and to issue or participate in Letters of Credit and
the Canadian Lenders have agreed to make Canadian Revolving Loans and to create
Bankers' Acceptances upon the terms and subject to the conditions set forth
therein; and

         WHEREAS, it is a condition precedent to the effectiveness of the Credit
Agreement, the obligation of the U.S. Lenders to make their respective U.S.
Revolving Loans and to issue or participate in Letters of Credit under the
Credit Agreement and the Canadian Lenders to make Canadian Revolving Loans and
to create Bankers' Acceptances under the Credit Agreement that the Pledgors
shall have executed and delivered this Pledge Agreement to the Agent for the
benefit of the Lenders.

         NOW, THEREFORE, in consideration of these premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1.       Definitions. Unless otherwise defined herein, capitalized
terms used herein shall have the meanings ascribed to such terms in the Credit
Agreement, and the following terms which are defined in the Uniform Commercial
Code from time to time in effect in the State of New York (the "UCC") are used
herein as so defined: Control, Entitlement Order, Securities Intermediary,
Securities Account and Security Entitlement. For purposes of this Pledge
Agreement, (a) the term "Lender" shall include any Affiliate of any Lender which
has entered into a Lender Hedging Agreement (to the extent the obligations of
any Borrower thereunder constitute Pledgor Obligations) (b) the term "Domestic
Subsidiary" shall mean any Subsidiary of a Pledgor that is organized and
existing under the laws of the United States or any state or commonwealth
thereof or under the laws of the District of Columbia (c) the term "Foreign
Subsidiary" shall mean any Subsidiary of a Pledgor that is not a Domestic
Subsidiary and (d) the term "Mexican Subsidiary" shall mean any Foreign
Subsidiary that is organized and existing under the laws of the United Mexican
States.

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         2.       Pledge and Grant of Security Interest. To secure the prompt
payment and performance in full when due, whether by lapse of time,
acceleration, mandatory prepayment or otherwise, of the Pledgor Obligations,
each Pledgor hereby pledges and assigns to the Agent, for the benefit of the
Lenders, and grants to the Agent, for the benefit of the Lenders, a continuing
security interest in any and all right, title and interest of such Pledgor in
and to the following, whether now owned or existing or owned, acquired, or
arising hereafter (collectively, the "Pledged Collateral"):

                  (a)      Pledged Capital Stock. (i) 100% (or, if less, the
         full amount owned by such Pledgor) of each class of the issued and
         outstanding Capital Stock of each Domestic Subsidiary set forth on
         Schedule 2(a) attached hereto and (ii) 65% (or, if less, the full
         amount owned by such Pledgor) of each class of the issued and
         outstanding Capital Stock entitled to vote (within the meaning of
         Treas. Reg. Section 1.956-2(c)(2)) ("Voting Equity") and 100% (or, if
         less, the full amount owned by such Pledgor) of each class of the
         issued and outstanding Capital Stock not entitled to vote (within the
         meaning of Treas. Reg. Section 1.956-2(c)(2)) ("Non-Voting Equity") of
         each Foreign Subsidiary set forth on Schedule 2(a) attached hereto, in
         each case together with the certificates (or other agreements or
         instruments), if any, representing such Capital Stock, and all options
         and other rights, contractual or otherwise, with respect thereto
         (collectively, together with the Capital Stock described in Section
         2(b) and 2(c) below, the "Pledged Capital Stock"), including, but not
         limited to, the following:

                           (y)      subject to the percentage restrictions
                  described above, all shares, securities, membership interests
                  or other equity interests representing a dividend on any of
                  the Pledged Capital Stock, or representing a distribution or
                  return of capital upon or in respect of the Pledged Capital
                  Stock, or resulting from a stock split, revision,
                  reclassification or other exchange therefor, and any
                  subscriptions, warrants, rights or options issued to the
                  holder of, or otherwise in respect of, the Pledged Capital
                  Stock; and

                           (z)      subject to the percentage restrictions
                  described above and without affecting the obligations of the
                  Pledgors under any provision prohibiting such action hereunder
                  or under the Credit Agreement, in the event of any
                  consolidation or merger involving the issuer of any Pledged
                  Capital Stock and in which such issuer is not the surviving
                  entity, all shares of each class of the Capital Stock of the
                  successor entity formed by or resulting from such
                  consolidation or merger.

                  (b)      Additional Interests. (i) 100% (or, if less, the full
         amount owned by such Pledgor) of each class of the issued and
         outstanding Capital Stock of any Person which hereafter becomes a
         Domestic Subsidiary and (ii) 65% (or, if less, the full amount owned by
         such Pledgor) of each class of Voting Equity and 100% (or, if less, the
         full amount owned by such Pledgor) of each class of Non-Voting Equity
         of any Person which hereafter becomes a Foreign Subsidiary, including,
         without limitation, the certificates (or other agreements or
         instruments) representing such Capital Stock, if any.

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                  (c)      Other Equity Interests. Subject to the percentage
         restrictions described above, any and all other Capital Stock owned by
         any Pledgor in any Domestic Subsidiary or any Foreign Subsidiary.

                  (d)      Proceeds. All proceeds and products of the foregoing,
         however and whenever acquired and in whatever form.

         Without limiting the generality of the foregoing, it is hereby
specifically understood and agreed that a Pledgor may from time to time
hereafter pledge and deliver additional shares of stock or other interests to
the Agent as collateral security for the Pledgor Obligations. Upon such pledge
and delivery to the Agent, such additional shares of stock or other interests
shall be deemed to be part of the Pledged Collateral of such Pledgor and shall
be subject to the terms of this Pledge Agreement whether or not Schedule 2(a) is
amended to refer to such additional shares.

         3.       Security for Pledgor Obligations. The security interest
created hereby in the Pledged Collateral of each Pledgor constitutes continuing
collateral security for all of the following, whether now existing or hereafter
incurred (the "Pledgor Obligations"): (a) all of the Obligations, howsoever
evidenced, created, incurred or acquired, whether primary, secondary, direct,
contingent, or joint and several and (b) all reasonable expenses and charges,
legal and otherwise, incurred by the Agent and/or the Lenders in collecting or
enforcing any Obligation or in realizing on or protecting any security therefor,
including without limitation the security granted hereunder.

         4.       Delivery of the Pledged Collateral; Perfection of Security
Interest. Each Pledgor hereby agrees that:

                  (a)      Delivery of Certificate. Each Pledgor shall deliver
         to the Agent (i) simultaneously with or prior to the execution and
         delivery of this Pledge Agreement, all certificates representing the
         Pledged Capital Stock of such Pledgor and (ii) promptly upon the
         receipt thereof by or on behalf of a Pledgor, all other certificates
         and instruments constituting Pledged Collateral of a Pledgor. Prior to
         delivery to the Agent, all such certificates and instruments
         constituting Pledged Collateral of a Pledgor shall be held in trust by
         such Pledgor for the benefit of the Agent pursuant hereto. All such
         certificates shall be delivered in suitable form for transfer by
         delivery or shall be accompanied by duly executed instruments of
         transfer or assignment in blank, substantially in the form provided in
         Exhibit 4(a)-1 attached hereto and in the case of Pledged Stock issued
         by a Mexican Subsidiary, duly endorsed in the form provided in Exhibit
         4(a)-2 attached hereto. Each Pledgor pledging Pledged Stock issued by a
         Mexican Subsidiary shall deliver to the Agent simultaneously with or
         prior to the execution and delivery of this Pledge Agreement, a
         certification issued by the secretary of the board of directors of such
         Mexican Subsidiary certifying that the pledge created hereby has been
         properly registered at the stock registry book of such Mexican
         Subsidiary.

                  (b)      Additional Securities. If such Pledgor shall receive
         by virtue of its being or having been the owner of any Pledged
         Collateral, any (i) certificate, including without

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         limitation, any certificate representing a dividend or distribution in
         connection with any increase or reduction of capital, reclassification,
         merger, consolidation, sale of assets, combination of shares or
         membership or equity interests, stock splits, spin-off or split-off,
         promissory notes or other instrument; (ii) option or right, whether as
         an addition to, substitution for, or an exchange for, any Pledged
         Collateral or otherwise; (iii) dividends payable in securities; or (iv)
         distributions of securities or other equity interests in connection
         with a partial or total liquidation, dissolution or reduction of
         capital, capital surplus or paid-in surplus, then, subject to the
         percentage restrictions described above in Sections 2(a) and (b), such
         Pledgor shall receive such certificate, instrument, option, right or
         distribution in trust for the benefit of the Agent, shall segregate it
         from such Pledgor's other property and shall deliver it forthwith to
         the Agent in the exact form received together with any necessary
         endorsement and/or appropriate stock power duly executed in blank,
         substantially in the form provided in Exhibit 4(a)-1 or in the case of
         a Mexican Subsidiary, in the form provided in Exhibit 4(a)-2, to be
         held by the Agent as Pledged Collateral and as further collateral
         security for the Pledgor Obligations, together, in the case of
         securities issued by a Mexican Subsidiary, with a certification issued
         by the secretary of the board of directors of such Mexican Subsidiary
         certifying that the pledge created hereby has been properly registered
         at the stock registry book of such Mexican Subsidiary.

                  (c)      Financing Statements. Each Pledgor shall execute, if
         necessary, and deliver to the Agent such UCC or other applicable
         financing statements (or comparable filings) as may be reasonably
         requested by the Agent in order to perfect and protect the security
         interest created hereby in the Pledged Collateral of such Pledgor.

                  (d)      Provisions Relating to Securities Entitlements and
         Securities Accounts. With respect to any Pledged Collateral consisting
         of a Securities Entitlement or held in a Securities Account, (a) the
         applicable Pledgor and the applicable Securities Intermediary shall
         enter into an agreement with the Agent granting Control to the Agent
         over such Pledged Collateral, such agreement to be in form and
         substance satisfactory to the Agent and (b) the Agent shall be
         entitled, upon the occurrence and during the continuance of an Event of
         Default, to notify the applicable Securities Intermediary that it
         should follow the Entitlement Orders of the Agent and no longer follow
         the Entitlement Orders of the applicable Pledgor. Upon receipt by a
         Pledgor of notice from a Securities Intermediary of its intent to
         terminate the Securities Account of such Pledgor held by such
         Securities Intermediary, prior to the termination of such Securities
         Account the Pledged Collateral in such Securities Account shall be (i)
         transferred to a new Securities Account which is subject to a control
         agreement as provided above or (ii) transferred to an account held by
         the Agent (in which it will be held until a new Securities Account is
         established).

         5.       Representations and Warranties. Each Pledgor hereby represents
and warrants to the Agent, for the benefit of the Lenders, on the Closing Date
and the date on which any Loan is made or Letter of Credit or Bankers'
Acceptance is issued, that:

                  (a)      Authorization of Pledged Capital Stock. The Pledged
         Capital Stock is duly authorized and validly issued, is fully paid and
         nonassessable and is not subject to

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         the preemptive rights of any Person. All other shares of Capital Stock
         constituting Pledged Collateral will be duly authorized and validly
         issued, fully paid and nonassessable and not subject to the preemptive
         rights of any Person.

                  (b)      Title. Each Pledgor has good and indefeasible title
         to the Pledged Collateral of such Pledgor and will at all times be the
         legal and beneficial owner of such Pledged Collateral free and clear of
         any Lien, other than Permitted Liens. There exists no "adverse claim"
         within the meaning of Section 8-102 of the UCC with respect to the
         Pledged Capital Stock of such Pledgor.

                  (c)      Exercising of Rights. The exercise by the Agent of
         its rights and remedies hereunder will not violate any law or
         governmental regulation or any material contractual restriction binding
         on or affecting a Pledgor or any of its property.

                  (d)      Pledgor's Authority. No authorization, approval or
         action by, and no notice or filing with any Governmental Authority, the
         issuer of any Pledged Capital Stock or third party is required (except
         such that have been duly obtained, made or given, or will be duly
         obtained, made or given prior to or contemporaneously with the granting
         of the security interest hereunder, and are in full force and effect)
         either (i) for the pledge made by a Pledgor or for the granting of the
         security interest by a Pledgor pursuant to this Pledge Agreement or
         (ii) for the exercise by the Agent or the Lenders of their rights and
         remedies hereunder (except as may be required by laws affecting the
         offering and sale of securities).

                  (e)      Security Interest/Priority. This Pledge Agreement
         creates a valid security interest in favor of the Agent, for the
         benefit of the Lenders, in the Pledged Collateral. The taking
         possession by the Agent of the certificates (if any) representing the
         Pledged Capital Stock and all other certificates and instruments
         constituting Pledged Collateral and, with respect to the Capital Stock
         of any Mexican Subsidiary, the registration of the pledge in favor of
         the Administrative Agent in the stock registry book of such Mexican
         Subsidiary, will perfect and establish the first priority of the
         Agent's security interest in all certificated Pledged Capital Stock and
         such certificates and instruments. Upon the filing of UCC financing
         statements in the appropriate filing office in the jurisdiction of each
         Pledgor's formation, the Agent will have a first priority perfected
         security interest in all uncertificated Pledged Capital Stock
         consisting of partnership or limited liability company interests that
         do not constitute a security pursuant to Section 8-103(c) of the UCC.
         With respect to any Pledged Collateral consisting of a Securities
         Entitlement or held in a Securities Account, upon execution and
         delivery by the applicable Pledgor, the applicable Securities
         Intermediary and the Agent of an agreement granting Control to the
         Agent over such Pledged Collateral, the Agent will have a first
         priority perfected security interest in such Pledged Collateral. Except
         as set forth in this Section 5(e), no action is necessary to perfect or
         otherwise protect such security interest.

                  (f)      No Other Capital Stock. Except as set forth on
         Schedule 2(a) attached hereto, no Pledgor owns any Capital Stock of the
         Company or any of its Subsidiaries.

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                  (g)      Partnership and Limited Liability Company Interests.
         Except as previously disclosed in writing to the Agent, none of the
         Pledged Capital Stock consisting of partnership or limited liability
         company interests (i) is dealt in or traded on a securities exchange or
         in a securities market, (ii) by its terms expressly provides that it is
         a security governed by Article 8 of the UCC, (iii) is an investment
         company security, (iv) is held in a securities account or (v)
         constitutes a "security" or a "financial asset" as such terms are
         defined in Article 8 of the UCC.

         6.       Covenants. Each Pledgor hereby covenants that so long as any
of the Pledgor Obligations remain outstanding or any Credit Document or Lender
Hedging Agreement is in effect or any Letter of Credit shall remain outstanding,
and until all of the Commitments shall have been terminated, such Pledgor shall:

                  (a)      Books and Records. Mark its books and records (and
         shall cause the issuer of the Pledged Capital Stock of such Pledgor to
         mark its books and records) to reflect the security interest granted to
         the Agent, for the benefit of the Lenders, pursuant to this Pledge
         Agreement.

                  (b)      Defense of Title. Warrant and defend title to and
         ownership of the Pledged Collateral of such Pledgor at its own expense
         against the claims and demands of all third parties claiming an
         interest therein, keep the Pledged Collateral free from all Liens,
         except for Permitted Liens, and not sell, exchange, transfer, assign,
         lease or otherwise dispose of Pledged Collateral of such Pledgor or any
         interest therein, except as permitted under the Credit Agreement and
         the other Credit Documents.

                  (c)      Further Assurances. Promptly execute and deliver at
         its expense all further instruments and documents and take all further
         action that may be necessary and desirable or that the Agent may
         reasonably request in order to (i) perfect and protect the security
         interest created hereby in the Pledged Collateral of such Pledgor
         (including, without limitation, the execution and filing of UCC
         financing statements and any and all action necessary to satisfy the
         Agent that the Agent has obtained a first priority perfected security
         interest in all Pledged Capital Stock); (ii) enable the Agent to
         exercise and enforce its rights and remedies hereunder in respect of
         the Pledged Collateral of such Pledgor; and (iii) otherwise effect the
         purposes of this Pledge Agreement, including, without limitation and if
         requested by the Agent, delivering to the Agent proxies in respect of
         the Pledged Collateral of such Pledgor, which proxies shall be
         irrevocable (i) for so long as any of the Pledgor Obligations remain
         outstanding, any Credit Document or any Lender Hedging Agreement is in
         effect or any Letter of Credit shall remain outstanding and (ii) until
         all of the Commitments shall have been terminated.

                  (d)      Amendments. Not make or consent to any amendment or
         other modification or waiver with respect to any of the Pledged
         Collateral of such Pledgor or enter into any agreement or allow to
         exist any restriction with respect to any of the Pledged Collateral of
         such Pledgor other than pursuant hereto or as may be permitted under
         the Credit Agreement.

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                  (e)      Compliance with Securities Laws. File all reports and
         other information now or hereafter required to be filed by such Pledgor
         with the United States Securities and Exchange Commission and any other
         state, federal or foreign agency in connection with the ownership of
         the Pledged Collateral of such Pledgor.

                  (f)      Issuance or Acquisition of Capital Stock. Not without
         executing and delivering, or causing to be executed and delivered, to
         the Agent such agreements, documents and instruments as the Agent may
         reasonably require, issue or acquire any Capital Stock consisting of an
         interest in a partnership or a limited liability company that (i) is
         dealt in or traded on a securities exchange or in a securities market,
         (ii) by its terms expressly provides that it is a security governed by
         Article 8 of the UCC, (iii) is an investment company security, (iv) is
         held in a securities account or (v) constitutes a "security" or a
         "financial asset" as such terms are defined in Article 8 of the UCC.

         7.       Performance of Obligations; Advances by Agent. On failure of
any Pledgor to perform any of the covenants and agreements contained herein, the
Agent may, at its sole option and in its sole discretion, perform or cause to be
performed the same and in so doing may expend such sums as the Agent may
reasonably deem advisable in the performance thereof, including, without
limitation, the payment of any insurance premiums, the payment of any taxes, a
payment to obtain a release of a Lien or potential Lien, expenditures made in
defending against any adverse claim and all other expenditures which the Agent
may make for the protection of the security hereof or which may be compelled to
make by operation of law. All such sums and amounts so expended shall be
repayable by the Pledgors on a joint and several basis promptly upon timely
notice thereof and demand therefor, shall constitute additional Pledgor
Obligations and shall bear interest from the date said amounts are expended at
the default rate set forth in Section 4.2(b) of the Credit Agreement. No such
performance of any covenant or agreement by the Agent on behalf of any Pledgor,
and no such advance or expenditure therefor, shall relieve the Pledgors of any
default under the terms of this Pledge Agreement, the other Credit Documents or
any Lender Hedging Agreement. The Agent may make any payment hereby authorized
in accordance with any bill, statement or estimate procured from the appropriate
public office or holder of the claim to be discharged without inquiry into the
accuracy of such bill, statement or estimate or into the validity of any tax
assessment, sale, forfeiture, tax lien, title or claim except to the extent such
payment is being contested in good faith by a Pledgor in appropriate proceedings
and against which adequate reserves are being maintained in accordance with U.S.
GAAP.

         8.       Events of Default. The occurrence of an event which under the
Credit Agreement would constitute an Event of Default shall be an event of
default hereunder (an "Event of Default").

         9.       Remedies.

                  (a)      General Remedies. Upon the occurrence and during the
         continuance of an Event of Default, the Agent shall have, in respect of
         the Pledged Collateral of any Pledgor, in addition to the rights and
         remedies provided herein, in the Credit Documents, in any Lender
         Hedging Agreement or by law, the rights and remedies of a secured party
         under the UCC or any other applicable law.

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                  (b)      Sale of Pledged Collateral. Upon the occurrence and
         during the continuance of an Event of Default, without limiting the
         generality of this Section and without notice, the Agent may, in its
         sole discretion, sell or otherwise dispose of or realize upon the
         Pledged Collateral, or any part thereof, in one or more parcels, at
         public or private sale, at any exchange or broker's board or elsewhere,
         at such price or prices and on such other terms as the Agent may deem
         commercially reasonable, for cash, credit or for future delivery or
         otherwise in accordance with applicable law. To the extent permitted by
         law, the Agent and any Lenders may in such event, bid for the purchase
         of such securities. Each Pledgor agrees that, to the extent notice of
         sale shall be required by law and has not been waived by such Pledgor,
         any requirement of reasonable notice shall be met if notice, specifying
         the place of any public sale or the time after which any private sale
         is to be made, is personally served on or mailed, postage prepaid, to
         such Pledgor, in accordance with the notice provisions of Section 14.1
         of the Credit Agreement at least ten (10) days before the time of such
         sale. The Agent shall not be obligated to make any sale of Pledged
         Collateral of such Pledgor regardless of notice of sale having been
         given. The Agent may adjourn any public or private sale from time to
         time by announcement at the time and place fixed therefor, and such
         sale may, without further notice, be made at the time and place to
         which it was so adjourned.

                  (c)      Private Sale. Upon the occurrence and during the
         continuance of an Event of Default, the Pledgors recognize that the
         Agent may deem it impracticable to effect a public sale of all or any
         part of the Pledged Collateral and that the Agent may, therefore,
         determine to make one or more private sales of any such Pledged
         Collateral to a restricted group of purchasers who will be obligated to
         agree, among other things, to acquire such Pledged Collateral for their
         own account, for investment and not with a view to the distribution or
         resale thereof. Each Pledgor acknowledges that any such private sale
         may be at prices and on terms less favorable to the seller than the
         prices and other terms which might have been obtained at a public sale
         and, notwithstanding the foregoing, agrees that such private sale shall
         be deemed to have been made in a commercially reasonable manner and
         that the Agent shall have no obligation to delay sale of any such
         Pledged Collateral for the period of time necessary to permit the
         issuer of such Pledged Collateral to register such Pledged Collateral
         for public sale under the Securities Act of 1933. Each Pledgor further
         acknowledges and agrees that any offer to sell such Pledged Collateral
         which has been (i) publicly advertised on a bona fide basis in a
         newspaper or other publication of general circulation in the financial
         community of New York, New York (to the extent that such offer may be
         advertised without prior registration under the Securities Act of
         1933), or (ii) made privately in the manner described above shall be
         deemed to involve a "public sale" under the UCC, notwithstanding that
         such sale may not constitute a "public offering" under the Securities
         Act of 1933, and the Agent may, in such event, bid for the purchase of
         such Pledged Collateral.

                  (d)      Retention of Pledged Collateral. In addition to the
         rights and remedies hereunder, upon the occurrence and during the
         continuance of an Event of Default, the Agent may, after providing the
         notices and obtaining consents required by Sections 9-620 and 9-621 of
         the UCC or otherwise complying with the requirements of applicable law
         of

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         the relevant jurisdiction, accept or retain all or any portion of the
         Pledged Collateral in satisfaction of the Pledgor Obligations. Unless
         and until the Agent shall have provided such notices, however, the
         Agent shall not be deemed to have retained any Pledged Collateral in
         satisfaction of any Pledgor Obligations for any reason.

                  (e)      Deficiency. In the event that the proceeds of any
         sale, collection or realization are insufficient to pay all amounts to
         which the Agent and the Lenders are legally entitled, the Pledgors
         shall be jointly and severally liable for the deficiency, together with
         interest thereon at the default rate set forth in Section 4.2(b) of the
         Credit Agreement, together with the costs of collection and the
         reasonable fees of any attorneys employed by the Agent to collect such
         deficiency. Any surplus remaining after the full payment and
         satisfaction of the Pledgor Obligations shall be returned to the
         Pledgors or to whomsoever a court of competent jurisdiction shall
         determine to be entitled thereto.

                  (f)      Other Security. To the extent that any of the Pledgor
         Obligations are now or hereafter secured by property other than the
         Pledged Collateral (including, without limitation, real and other
         personal property owned by a Pledgor), or by a guarantee, endorsement
         or property of any other Person, then the Agent and the Lenders shall
         have the right to proceed against such other property, guarantee or
         endorsement upon the occurrence and during the continuance of any Event
         of Default, and the Agent and the Lenders have the right, in their sole
         discretion, to determine which rights, security, liens, security
         interests or remedies the Agent and the Lenders shall at any time
         pursue, relinquish, subordinate, modify or take with respect thereto,
         without in any way modifying or affecting any of them or any of the
         Agent's and the Lenders' rights or the Pledgor Obligations under this
         Pledge Agreement, under any other of the Credit Documents or under any
         Lender Hedging Agreement.

                  (g)      PPSA. In addition to, and not in any way in
         limitation of any of the foregoing rights and remedies, the Agent may
         exercise any and all remedies available to the Agent under the PPSA.

         10.      Rights of the Agent.

                  (a)      Power of Attorney. In addition to other powers of
         attorney contained herein, each Pledgor hereby designates and appoints
         the Agent, on behalf of the Lenders, and each of its designees or
         agents as attorney-in-fact of such Pledgor, irrevocably and with power
         of substitution, with authority to take any or all of the following
         actions upon the occurrence and during the continuation of an Event of
         Default:

                                    (i)      to demand, collect, settle,
                  compromise, adjust and give discharges and releases, all as
                  the Agent may reasonably determine;

                                    (ii)     to commence and prosecute any
                  actions at any court for the purposes of collecting any of the
                  Pledged Collateral of such Pledgor and enforcing any other
                  right in respect thereof;

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                                    (iii)    to defend, settle, adjust or
                  compromise any action, suit or proceeding brought and, in
                  connection therewith, give such discharge or release as the
                  Agent may deem reasonably appropriate;

                                    (iv)     to pay or discharge taxes, liens,
                  security interests, or other encumbrances levied or placed on
                  or threatened against the Pledged Collateral of such Pledgor;

                                    (v)      to direct any parties liable for
                  any payment under any of the Pledged Collateral to make
                  payment of any and all monies due and to become due thereunder
                  directly to the Agent or as the Agent shall direct;

                                    (vi)     to receive payment of and receipt
                  for any and all monies, claims, and other amounts due and to
                  become due at any time in respect of or arising out of any
                  Pledged Collateral of such Pledgor;

                                    (vii)    to sign and endorse any drafts,
                  assignments, proxies, stock powers, verifications, notices and
                  other documents relating to the Pledged Collateral of such
                  Pledgor;

                                    (viii)   to execute and deliver all
                  assignments, conveyances, statements, financing statements (or
                  comparable filings), renewal financing statements, pledge
                  agreements, affidavits, notices and other agreements,
                  instruments and documents that the Agent may determine
                  necessary in order to perfect and maintain the security
                  interests and liens granted in this Pledge Agreement and in
                  order to fully consummate all of the transactions contemplated
                  herein;

                                    (ix)     to exchange any of the Pledged
                  Collateral of such Pledgor or other property upon any merger,
                  consolidation, reorganization, recapitalization or other
                  readjustment of the issuer thereof and, in connection
                  therewith, deposit any of the Pledged Collateral of such
                  Pledgor with any committee, depository, transfer agent,
                  registrar or other designated agency upon such terms as the
                  Agent may determine;

                                    (x)      to vote for a shareholder, partner
                  or member resolution, or to sign an instrument in writing,
                  sanctioning the transfer of any or all of the Pledged Capital
                  Stock of such Pledgor into the name of the Agent or one or
                  more of the Lenders or into the name of any transferee to whom
                  the Pledged Capital Stock of such Pledgor or any part thereof
                  may be sold pursuant to Section 9 hereof; and

                                    (xi)     to do and perform all such other
                  acts and things as the Agent may reasonably deem to be
                  necessary, proper or convenient in connection with the Pledged
                  Collateral of such Pledgor.

                                       10

<PAGE>

         This power of attorney is a power coupled with an interest and shall be
         irrevocable (i) for so long as any of the Pledgor Obligations remain
         outstanding, any Credit Document or any Lender Hedging Agreement is in
         effect or any Letter of Credit shall remain outstanding and (ii) until
         all of the Commitments shall have been terminated. The Agent shall be
         under no duty to exercise or withhold the exercise of any of the
         rights, powers, privileges and options expressly or implicitly granted
         to the Agent in this Pledge Agreement, and shall not be liable for any
         failure to do so or any delay in doing so. The Agent shall not be
         liable for any act or omission or for any error of judgment or any
         mistake of fact or law in its individual capacity or its capacity as
         attorney-in-fact except acts or omissions resulting from its gross
         negligence or willful misconduct. This power of attorney is conferred
         on the Agent solely to protect, preserve and realize upon its security
         interest in the Pledged Collateral.

                  (b)      Assignment by the Administrative Agent. The
         Administrative Agent may from time to time assign the Pledgor
         Obligations and the Pledged Collateral to a successor Administrative
         Agent appointed pursuant to Section 13.9 of the Credit Agreement, and
         such successor shall be entitled to all of the rights and remedies of
         the Administrative Agent under this Pledge Agreement in relation
         thereto.

                  (c)      The Agent's Duty of Care. Other than the exercise of
         reasonable care to ensure the safe custody of the Pledged Collateral
         while being held by the Agent hereunder, the Agent shall have no duty
         or liability to preserve rights pertaining thereto, it being understood
         and agreed that Pledgors shall be responsible for preservation of all
         rights in the Pledged Collateral of such Pledgor, and the Agent shall
         be relieved of all responsibility for Pledged Collateral upon
         surrendering it or tendering the surrender of it to the Pledgors. The
         Agent shall be deemed to have exercised reasonable care in the custody
         and preservation of the Pledged Collateral in its possession if such
         Pledged Collateral is accorded treatment substantially equal to that
         which the Agent accords its own property, which shall be no less than
         the treatment employed by a reasonable and prudent agent in the
         industry, it being understood that the Agent shall not have
         responsibility for (i) ascertaining or taking action with respect to
         calls, conversions, exchanges, maturities, tenders or other matters
         relating to any Pledged Collateral, whether or not the Agent has or is
         deemed to have knowledge of such matters; or (ii) taking any necessary
         steps to preserve rights against any parties with respect to any
         Pledged Collateral.

                  (d)      Voting Rights in Respect of the Pledged Collateral.

                                    (i)      So long as no Event of Default
                  shall have occurred and be continuing, to the extent permitted
                  by law, each Pledgor may exercise any and all voting and other
                  consensual rights pertaining to the Pledged Collateral of such
                  Pledgor or any part thereof for any purpose not inconsistent
                  with the terms of this Pledge Agreement or the Credit
                  Agreement; and

                                    (ii)     Upon the occurrence and during the
                  continuance of an Event of Default and receipt of notice from
                  the Agent, all rights of a Pledgor to

                                       11

<PAGE>

                  exercise the voting and other consensual rights which it would
                  otherwise be entitled to exercise pursuant to paragraph (i) of
                  this subsection (d) shall cease and all such rights shall
                  thereupon become vested in the Agent which shall then have the
                  sole right to exercise such voting and other consensual
                  rights.

                  (e)      Dividend and Distribution Rights in Respect of the
         Pledged Collateral.

                           (i)      So long as no Event of Default shall have
                  occurred and be continuing and subject to Section 4(b) hereof,
                  each Pledgor may receive and retain any and all dividends
                  (other than stock or ownership interest dividends and other
                  dividends constituting Pledged Collateral which are addressed
                  hereinabove), distributions or interest paid in respect of the
                  Pledged Collateral to the extent they are allowed under the
                  Credit Agreement.

                           (ii)     Upon the occurrence and during the
                  continuation of an Event of Default:

                                    (A)      all rights of a Pledgor to receive
                           the dividends, distributions and interest payments
                           which it would otherwise be authorized to receive and
                           retain pursuant to paragraph (i) of this subsection
                           (e) shall cease and all such rights shall thereupon
                           be vested in the Agent which shall then have the sole
                           right to receive and hold as Pledged Collateral such
                           dividends, distributions and interest payments; and

                                    (B)      all dividends, distributions and
                           interest payments which are received by a Pledgor
                           contrary to the provisions of clause (A) of this
                           paragraph (ii) shall be received in trust for the
                           benefit of the Agent, shall be segregated from other
                           property or funds of such Pledgor, and shall be
                           forthwith paid over to the Agent as Pledged
                           Collateral in the exact form received, to be held by
                           the Agent as Pledged Collateral and as further
                           collateral security for the Pledgor Obligations.

                  (f)      Release of Pledged Collateral. The Agent may release
         any of the Pledged Collateral from this Pledge Agreement or may
         substitute any of the Pledged Collateral for other Pledged Collateral
         without altering, varying or diminishing in any way the force, effect,
         lien, pledge or security interest of this Pledge Agreement as to any
         Pledged Collateral not expressly released or substituted, and the
         security interest created by this Pledge Agreement shall continue as a
         first priority lien on all Pledged Collateral not expressly released or
         substituted.

                  (g)      Filing of Financing Statements. The Pledgors
         authorize the Agent to file financing statements (including renewal
         statements and in lieu statements) and PPSA registrations and
         amendments thereof and supplements thereto with respect to the Pledged
         Collateral in such form and in such filing offices as the Agent
         reasonably determines appropriate to perfect the security interests of
         the Agent under this Pledge Agreement. Any financing statement or PPSA
         registration filed by the Agent may contain a

                                       12

<PAGE>

         general description of the collateral covered thereby, as permitted by
         the UCC and/or the PPSA, which may state that the security interest
         attaches to all personal property of the debtor.

         11.      Rights of Required Lenders. All rights of the Agent hereunder,
if not exercised by the Agent, may be exercised by the Required Lenders.

         12.      Application of Proceeds. Upon the occurrence and during the
continuation of an Event of Default, any payments in respect of the Pledgor
Obligations and any proceeds of any Pledged Collateral, when received by the
Agent or any of the Lenders in cash or its equivalent, will be applied in
reduction of the Pledgor Obligations in the order set forth in Section 4.7 of
the Credit Agreement, and each Pledgor irrevocably waives the right to direct
the application of such payments and proceeds and acknowledges and agrees that
the Agent shall have the continuing and exclusive right to apply and reapply any
and all such payments and proceeds in the Agent's sole discretion,
notwithstanding any entry to the contrary upon any of its books and records.

         13.      Costs of Counsel. If at any time hereafter, whether upon the
occurrence of an Event of Default or not, the Agent employs counsel to prepare
or consider amendments, waivers or consents with respect to this Pledge
Agreement, or to take action or make a response in or with respect to any legal
or arbitral proceeding relating to this Pledge Agreement or relating to the
Pledged Collateral, or to protect the Pledged Collateral or exercise any rights
or remedies under this Pledge Agreement or with respect to the Pledged
Collateral, then the Pledgors agree to promptly pay upon demand any and all such
reasonable costs and expenses of the Agent, all of which costs and expenses
shall constitute Pledgor Obligations hereunder.

         14.      Continuing Agreement.

                  (a)      This Pledge Agreement shall be a continuing agreement
         in every respect and shall remain in full force and effect so long as
         any of the Pledgor Obligations remain outstanding or any Credit
         Document or Lender Hedging Agreement is in effect or any Letter of
         Credit shall remain outstanding, and until all of the Commitments
         thereunder shall have terminated. Upon such payment and termination,
         this Pledge Agreement shall be automatically terminated and the Agent
         shall, upon the request and at the expense of the Pledgors, forthwith
         release all of its liens and security interests hereunder and shall
         execute, if necessary, and deliver all UCC termination statements
         and/or other documents reasonably requested by the Pledgors evidencing
         such termination. Notwithstanding the foregoing all releases and
         indemnities provided hereunder shall survive termination of this Pledge
         Agreement.

                  (b)      This Pledge Agreement shall continue to be effective
         or be automatically reinstated, as the case may be, if at any time
         payment, in whole or in part, of any of the Pledgor Obligations is
         rescinded or must otherwise be restored or returned by the Agent or any
         Lender as a preference, fraudulent conveyance or otherwise under any
         bankruptcy, insolvency or similar law, all as though such payment had
         not been made; provided that in the event payment of all or any part of
         the Pledgor Obligations is rescinded or must be restored or returned,
         all reasonable costs and expenses (including without limitation any

                                       13

<PAGE>

         reasonable legal fees and disbursements) incurred by the Agent or any
         Lender in defending and enforcing such reinstatement shall be deemed to
         be included as a part of the Pledgor Obligations.

         15.      Amendments; Waivers; Modifications. This Pledge Agreement and
the provisions hereof may not be amended, waived, modified, changed, discharged
or terminated except as set forth in Section 14.6 of the Credit Agreement.

         16.      Successors in Interest. This Pledge Agreement shall create a
continuing security interest in the Pledged Collateral and shall be binding upon
each Pledgor, its successors and assigns and shall inure, together with the
rights and remedies of the Agent and the Lenders hereunder, to the benefit of
the Agent and the Lenders and their successors and permitted assigns; provided,
however, that none of the Pledgors may assign its rights or delegate its duties
hereunder without the prior written consent of each Lender or the Required
Lenders, as required by the Credit Agreement. To the fullest extent permitted by
law, each Pledgor hereby releases the Agent and each Lender, and its successors
and assigns, from any liability for any act or omission relating to this Pledge
Agreement or the Pledged Collateral, except for any liability arising from the
gross negligence or willful misconduct of the Agent, or such Lender, or its
officers, employees or agents.

         17.      Notices. All notices required or permitted to be given under
this Pledge Agreement shall be in conformance with Section 14.1 of the Credit
Agreement.

         18.      Counterparts. This Pledge Agreement may be executed in any
number of counterparts, each of which where so executed and delivered shall be
an original, but all of which shall constitute one and the same instrument. It
shall not be necessary in making proof of this Pledge Agreement to produce or
account for more than one such counterpart.

         19.      Headings. The headings of the sections and subsections hereof
are provided for convenience only and shall not in any way affect the meaning,
construction or interpretation of any provision of this Pledge Agreement.

         20.      Governing Law; Submission to Jurisdiction and Service of
Process; Waiver of Jury Trial. THIS PLEDGE AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. The terms of
Sections 14.12 and 14.14 of the Credit Agreement are incorporated herein by
reference, mutatis mutandis, and the parties hereto agree to such terms.

         21.      Severability. If any provision of this Pledge Agreement is
determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and
effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

         22.      Entirety. This Pledge Agreement, the other Credit Documents
and any Lender Hedging Agreement represent the entire agreement of the parties
hereto and thereto, and

                                       14

<PAGE>

supersede all prior agreements and understandings, oral or written, if any,
including any commitment letters or correspondence relating to this Pledge
Agreement, the other Credit Documents, any Lender Hedging Agreement or the
transactions contemplated herein and therein.

         23.      Survival. All representations and warranties of the Pledgors
hereunder shall survive the execution and delivery of this Pledge Agreement, the
other Credit Documents and any Lender Hedging Agreement, the delivery of the
Notes and the making of the Loans, the issuance of the Letters of Credit and the
creation of Bankers' Acceptances under the Credit Agreement.

         24.      Joint and Several Obligations of Pledgors.

                  (a)      Each of the Pledgors is accepting joint and several
         liability hereunder in consideration of the financial accommodation to
         be provided by the Lenders under the Credit Agreement, for the mutual
         benefit, direct and indirect, of each of the Pledgors and in
         consideration of the undertakings of each of the Pledgors to accept
         joint and several liability for the obligations of each of them.

                  (b)      Each of the Pledgors, jointly and severally, hereby
         irrevocably and unconditionally accepts, not merely as a surety but
         also as a co-debtor, joint and several liability with the other
         Pledgors with respect to the payment and performance of all of the
         Pledgor Obligations arising under this Pledge Agreement, the other
         Credit Documents and any Lender Hedging Agreement, it being the
         intention of the parties hereto that all the Pledgor Obligations shall
         be the joint and several obligations of each of the Pledgors without
         preferences or distinction among them.

                  (c)      Notwithstanding any provision to the contrary
         contained herein or in any other of the Credit Documents, to the extent
         the obligations of a Pledgor shall be adjudicated to be invalid or
         unenforceable for any reason (including, without limitation, because of
         any applicable state, provincial or federal law relating to fraudulent
         conveyances or transfers) then the obligations of such Pledgor
         hereunder shall be limited to the maximum amount that is permissible
         under applicable law (whether state, provincial or federal and
         including, without limitation, the Bankruptcy Code).

                  25.      Judgment Currency.

                  (a)      If for the purposes of obtaining judgment in any
         court it is necessary to convert all or any part of the Pledgor
         Obligations or any other amount due to the Lenders hereunder or under
         any other Credit Document in respect of the Pledgors' obligations
         hereunder in any currency (the "Original Currency") into another
         currency (the "Other Currency") each Pledgor to the fullest extent that
         it may effectively do so, agrees that the rate of exchange used shall
         be that at which, in accordance with normal banking procedures, the
         Agent could purchase the Original Currency with the Other Currency at
         its principal offices in Charlotte, North Carolina on the Business Day
         on which the Agent is open for the transaction of its banking business
         at such offices immediately preceding

                                       15

<PAGE>

         the day on which any such judgment, or any relevant part thereof, is
         paid or otherwise satisfied.

                  (b)      The obligation of each Pledgor in respect of any sum
         due in the Original Currency from it to the Agent or the Lenders
         hereunder or under any other Credit Document in respect of the
         Pledgors' obligation hereunder shall, notwithstanding any judgment in
         any Other Currency, be discharged only to the extent that on the
         Business Day following receipt by the Agent of any sum adjudged to be
         so due in such Other Currency or of any other sum in any Other Currency
         the Agent may, in accordance with its normal banking procedures,
         purchase the Original Currency with such Other Currency. If the amount
         of the Original Currency so purchased is less than the sum originally
         due to the Agent and the Lenders in the Original Currency, the Pledgors
         shall, as a separate obligation and notwithstanding any such judgment,
         indemnify the Agent against such loss, and if the amount of the
         Original Currency so purchased exceeds the sum originally due to the
         Lenders, the Agent shall remit such excess to the Pledgors.

                  [remainder of page intentionally left blank]

                                       16

<PAGE>

         Each of the parties hereto has caused a counterpart of this Pledge
Agreement to be duly executed and delivered as of the date first above written.

BORROWERS:                              HAMILTON BEACH/PROCTOR-SILEX, INC., a
                                        Delaware corporation

                                        By:   /s/ James H. Taylor
                                           ---------------------------------
                                        Name: James H. Taylor
                                        Title: Vice President and Treasurer

U.S. SUBSIDIARY BORROWERS:              [NONE]

<PAGE>

         Accepted and agreed to as of the date first above written.

                                        WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as Agent

                                         By:    /s/ Steven J. Haas
                                             -------------------------------
                                         Name:  Steven J. Haas
                                         Title: Director<PAGE>

                                                                 EXHIBIT 10(cxx)

                          HAMILTON BEACH/PROCTOR-SILEX
                     2003 ANNUAL INCENTIVE COMPENSATION PLAN

GENERAL

Hamilton Beach/Proctor-Silex, Inc. (the "Company") has established an Annual
Incentive Compensation Plan (the "Plan") as part of a competitive compensation
program for the Officers and key management employees of the Company and its
Subsidiaries. This Plan is also referred to as the Short Term Incentive
Compensation Plan.

PLAN OBJECTIVE

The Company desires to attract and retain talented employees to enable the
Company to meet its financial and business objectives. The objective of the Plan
is to provide an opportunity to earn annual incentive compensation to those
employees whose performance has a significant impact on the Company's short-term
and long-term profitability.

ADMINISTRATION AND PARTICIPATION

The Plan is administered by the Nominating, Organization and Compensation
Committee of the Board of Directors of the Company (the "Committee"). The
Committee:

a.  May amend, modify, or discontinue the Plan.

b.  Will approve participation in the Plan. Generally, participants will
    include all employees in Hay Salary Job Grades 14 and above. Employees who
    voluntarily terminate their employment prior to year-end are not entitled to
    an award, and employees joining the Company after August (31) of any year
    will not be entitled to an award. Existing employees who were hired prior to
    September 1 and who are subsequently promoted into Grade 14 or above are
    allowed to enter after August. However, the Committee may select any
    employee who has contributed significantly to the Company's profitability to
    participate in the Plan and receive an annual incentive compensation award.

c.  Will determine the annual performance criteria which generates the incentive
    compensation pool.

d.  Will determine the total amount of both the target and actual annual
    incentive compensation pool.

e.  Will approve individual incentive compensation awards to Officers and
    employees above Hay Salary Job Grade 17.

f.  May delegate to the Chief Executive Officer of the Company the power to
    approve incentive compensation awards to employees in and below Hay Salary
    Job Grade 17.

g.  May consider at the end of each year the award of a discretionary bonus
    amount to non-participants as an addition to the regular incentive
    compensation pool on a special one-time basis to motivate individuals not
    eligible to participate in the Plan,

h.  May approve a pro rata incentive compensation award for participants,
    provided those participants were actively at work for 90 days in the year of
    termination, whose employment is terminated (1) due to death, disability,
    retirement or facility closure or partial closure, such award to be
    determined pursuant to the provisions of subparagraphs e. and f. above or
    (2) under other circumstances at the recommendation of the Chief Executive
    Officer of the Company.

i.  Pursuant to item h., retirement is defined as participants who are 55 years
    of age or older with five years or more of service at the time of
    termination. Disability is defined as an approved application for disability
    benefits under the Company's long term disability plan, or under the
    applicable government program. Facility closure or partial closure is
    defined as any layoff which requires WARN Act notice in the United States.
    In Mexico, facility closure or partial closure is defined as any layoff of
    50 or more employees.

Determination of Corporate Incentive Compensation Pool

Each participant in the Plan will have an individual target incentive
compensation percentage which is determined by the participant's Hay Salary Job
Grade.

This percentage is multiplied by the midpoint of the participant's Hay Salary
Job Grade to determine his/her individual target incentive compensation award.

<PAGE>

The total of the target incentive compensation awards of all participants equals
the target corporate incentive compensation pool (the "Target Pool"). The Target
Pool is approved each year by the Committee.

The actual corporate incentive compensation pool (the " Actual Pool") is
determined at the end of each year based on the Company's actual performance
against specific criteria established in the beginning of the year by the
Committee. The Target Pool is adjusted upwards or downwards by corporate
performance adjustment factors to determine the Actual Pool. In no event will
the actual Pool exceed 150% of the Target Pool, except to the extent that the
Committee elects to increase the Actual Pool by up to 10%, as described below.

It is the intent of the Plan that the Actual Pool, as determined above, will be
the final total corporate incentive compensation pool. However, the Committee,
in its sole discretion, may increase or decrease by up to 10% the Actual Pool or
may approve an incentive compensation pool where there would normally be no pool
due to Company performance which is below the criteria established for the year.

The Actual and Target Pools exclude commission personnel such as salespersons,
regional general managers, and manufacturers representatives.

DETERMINATION OR INDIVIDUAL INCENTIVE COMPENSATION AWARDS

Hay Salary Job Grades and the corresponding target incentive percentage for each
participant in the Plan will be established at the beginning of each year and
approved by the Committee. Individual target incentive compensation will then be
adjusted by the appropriate pool factor. Such adjusted individual incentive
compensation will then be further modified based on a participant's performance
as compared to his individual goals for the year. The total of all individual
incentive compensation awards must not exceed the Actual Pool for the year.

2003 PERFORMANCE TARGETS

The performance targets for the Hamilton Beach/Proctor-Silex Annual Incentive
Compensation Plan are attached as a Schedule to this document.

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