Document:

<PAGE>
                                                                EXHIBIT 10.13(b)

                              U.S. INDUSTRIES, INC.
                                MASTER AGREEMENT

                                     WAIVER
                          DATED AS OF OCTOBER 30, 2002

                  This WAIVER dated as of October 30, 2002, to the Amendment,
Restatement, General Provisions and Intercreditor Agreement dated as of August
15, 2001 and amended and restated as of September 23, 2002, between U.S.
Industries, Inc. ("USI"), USI Global Corp., USI American Holdings, Inc., USI
Atlantic Corp., Rexair Holdings, Inc., Rexair, Inc. and the other subsidiaries
of USI party thereto as Loan Parties, Wilmington Trust Company and David A.
Vanaskey, not in their individual capacities, but solely as Collateral Trustees,
Bank of America, N.A., as agent and the various bank and other lender parties
thereto (as amended, amended and restated, supplemented or otherwise modified
from time to time, the "MASTER AGREEMENT"). Capitalized terms used without
definition in this Waiver shall have the meanings set forth in the Master
Agreement.

                              W I T N E S S E T H:

                  WHEREAS, USI intends to consummate an Asset Disposition of
that certain real property located in the City of Nipomo, County of San Luis
Obispo, California pursuant to the Woodlands Agreement (as defined below),
scheduled to close on or about October 31, 2002 (the "WOODLANDS ASSET
DISPOSITION");

                  WHEREAS, the consideration for the Woodlands Asset Disposition
will consist of (a) $10,350,000 in cash (the "CASH CONSIDERATION") and (b) a
promissory note to be dated the date of the closing of the Woodlands Asset
Disposition and issued by Woodlands Ventures, LLC (the "BUYER") to PH Property
Development Company, a Subsidiary of USI (the "SELLER") in the principal amount
of $9,650,000 (the "NOTE") secured by a Deed of Trust by the Buyer as Trustor,
to the Seller as Trustee and as Beneficiary (the "DEED OF TRUST") in accordance
with the terms and conditions pursuant to that certain Agreement of Purchase and
Sale and Joint Escrow Instructions dated as of May 7, 1999 (as amended, amended
and restated, supplemented or otherwise modified from time to time, the
"WOODLANDS AGREEMENT") among the Buyer and Seller.

                  WHEREAS, the Loan Parties have requested that the Banks agree
to waive compliance with certain provisions contained in the Master Agreement in
connection with the Woodlands Asset Disposition;

                  WHEREAS, the Banks are willing to grant the request of the
Loan Parties and waive compliance with certain provisions of the Master
Agreement as hereinafter set forth;

<PAGE>

                  NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and subject to the
terms and conditions hereof, the parties hereto agree as follows:

                  SECTION 1. LIMITED WAIVER. Subject to the occurrence of the
Effective Date, the Banks hereby agree to waive the requirements under Section
6.02(e)(iv)(B) of the Master Agreement in connection with the Woodlands Asset
Disposition that 100% of the consideration be for cash; PROVIDED, that (i) the
Net Cash Proceeds of the Cash Consideration, together with the Note (with an
undated note power indorsed by the Seller in blank) shall be delivered and
pledged to the Collateral Trustees for the benefit of the Secured Holders as
payment (in the case of the Cash Consideration) and as Collateral (in the case
of the Note) and (ii) an assignment of the Deed of Trust substantially in the
form of Exhibit A attached hereto and made a part hereof shall be executed by
the Seller and delivered to the Collateral Trustees, on the closing of the
Woodlands Asset Disposition.

                  SECTION 2. CONDITIONS TO EFFECTIVENESS. The provisions of
Section 1 of this Waiver shall become effective as of the date first above
written (the "EFFECTIVE DATE") when, and only when, the Debt Coordinator shall
have received confirmation of each of the following, each in form and substance
satisfactory to the Debt Coordinator:

                  (i) EXECUTION OF COUNTERPARTS. The Debt Coordinator shall have
         received counterparts of this Waiver duly executed by each of the Loan
         Parties and the Majority Banks.

                  (ii) PAYMENT OF FEES AND EXPENSES. The Debt Coordinator shall
         have determined that all agency, trustee, custodial, filing service,
         legal and other fees and disbursements incurred and invoiced through
         the day immediately prior to the Effective Date, including all fees of
         the Collateral Trustees and the Debt Coordinator and their respective
         counsel and of the Financial Advisor, shall have been paid in full by
         the Loan Parties.

                  (iii) NO DEFAULT. No Default shall have occurred or be
         continuing, other than a Default that shall be cured by the
         effectiveness hereof.

                  SECTION 3. CONFIRMATION OF REPRESENTATIONS AND WARRANTIES AND
CERTAIN ACKNOWLEDGEMENTS AND AGREEMENTS. Each of the Loan Parties hereby
represents and warrants, on and as of the Effective Date, that the
representations and warranties contained in the Master Agreement are correct and
true in all material respects on and as of the date hereof, before and after
giving effect to this Waiver, as though made on and as of the date hereof, other
than any such representations or warranties that, by their terms, refer to a
specific date. In addition, each of the Loan Parties hereby acknowledges and
restates, on and as of the Effective Date, each of its statements and agreements
in Sections 8.02(d) and 8.03 of the Master Agreement.

                  SECTION 4. REFERENCE TO AND EFFECT ON THE TRANSACTION
DOCUMENTS. (a) On and after the effectiveness of this Waiver, each reference in
the Master Agreement to "hereunder", "hereof" or words of like import referring
to the Master Agreement, and each reference in the other Transaction Documents

                                       2
<PAGE>

to the "Master Agreement", "thereunder", "thereof" or words of like import
referring to the Master Agreement, shall mean and be a reference to the Master
Agreement as modified by this Waiver.

                  (b) The execution, delivery and effectiveness of this Waiver
shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of any Bank or the Debt Coordinator under any of the
Transaction Documents, nor constitute a waiver of any provision of any of the
Transaction Documents.

                  SECTION 5. EXECUTION IN COUNTERPARTS. This Waiver may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Waiver by telecopier shall be effective as delivery of a manually executed
counterpart of this Waiver.

                  SECTION 6. GOVERNING LAW. This Waiver shall be governed by,
and construed in accordance with, the laws of the State of New York, and shall
be subject to the jurisdictional and service provisions of the Master Agreement,
as if this were a part of the Master Agreement.

                  SECTION 7. ENTIRE AGREEMENT; MODIFICATION. This Waiver
constitutes the entire agreement of the parties hereto with respect to the
subject matter hereof, there being no other agreements or understandings, oral,
written or otherwise, respecting such subject matter, any such agreement or
understanding being superseded hereby, shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns, and
may not be amended, extended or otherwise modified, except in a writing executed
in whole or in counterparts by each party hereto.

                  SECTION 8. WAIVER PROVISIONS. This Waiver is subject to the
provisions of Section 10.01 of the Master Agreement.

              [The rest of this page is intentionally left blank.]

                                       3
<PAGE>
                  IN WITNESS WHEREOF, the parties hereto have caused this Waiver
to be duly executed and delivered by their proper and duly authorized officers
as of the day and year first above written.

AS OBLIGORS AND LOAN PARTIES:             AS LOAN PARTIES:

U.S. INDUSTRIES, INC.                     ASTERIA COMPANY
USI AMERICAN HOLDINGS, INC.               BATHCRAFT, INC.
USI ATLANTIC CORP.                        BAYLIS BROTHERS INC.
USI GLOBAL CORP.                          BRUCKNER MANUFACTURING CORP.
REXAIR, INC.                              CARLSBAD CORP.
REXAIR HOLDINGS, INC.                     COMPAX CORP.
                                          ELJER INDUSTRIES, INC.
                                          ELJER PLUMBINGWARE, INC.
                                          ENVIRONMENTAL ENERGY COMPANY
                                          EZ HOLDINGS, INC.
                                          GARY CONCRETE PRODUCTS, INC.
                                          GATSBY SPAS, INC.
                                          HL CAPITAL CORP.
                                          JACUZZI INC.
                                          JACUZZI WHIRLPOOL BATH, INC.
                                          JUSI HOLDINGS, INC.
                                          KLI, INC.
                                          KRIKLES CANADA U.S.A., INC.
                                          KRIKLES EUROPE U.S.A., INC.
                                          KRIKLES, INC.
                                          LOKELANI DEVELOPMENT CORPORATION
                                          LUXOR INDUSTRIES INC.
                                          MAILI KAI LAND DEVELOPMENT CORPORATION
                                          MOBILITE, INC.
                                          NEPCO OF AUSTRALIA, INC.
                                          NEPCO OF CANADA, INC.
                                          NEPCO OF FORD HEIGHTS, INC.
                                          NEPCO OF FULTON, INC.
                                          NISSEN UNIVERSAL HOLDINGS INC.
                                          OUTDOOR PRODUCTS LLC
                                          PH PROPERTY DEVELOPMENT COMPANY
                                          PLC REALTY INC.
                                          REDMONT, INC.
                                          SANITARY-DASH MANUFACTURING CO., INC.
                                          SHELBY PROPERTIES, INC.
                                          STRATEGIC CAPITAL MANAGEMENT, INC.
                                          STRATEGIC MEMBERSHIP COMPANY
                                          STREAMWOOD CORPORATION
                                          SUNDANCE SPAS, INC.
                                          TA LIQUIDATION CORP.
                                          TRIMFOOT CO.
                                          TT LIQUIDATION CORP.
                                          UGE LIQUIDATION INC.
                                          UNITED STATES BRASS CORPORATION
                                          USI CAPITAL, INC.
                                          USI FUNDING, INC.
                                          USI PROPERTIES, INC.
                                          USI REALTY CORP.

                                       4
<PAGE>

                              ZURCO, INC.
                              ZURNACQ OF CALIFORNIA, INC.
                              ZURN (CAYMAN ISLANDS), INC.
                              ZURN CONSTRUCTORS, INC.
                              ZURN DEVCO, INC.
                              ZURN EPC SERVICES, INC.
                              ZURN GOLF HOLDING CORPORATION
                              ZURN INDUSTRIES, INC.

                              By: /s/  STEVEN C. BARRE
                                 ---------------------------------------------
                                 Name:  Steven C. Barre
                                 Title:  Vice President/Senior Vice President

                                       5
<PAGE>

                                 ABN AMRO BANK N.V.
                                 ---------------------------------------------
                                 [PLEASE PRINT NAME OF BANK]

                                 By: /s/ NEIL J. BIVONA
                                    ------------------------------------------
                                    Name:  Neil J. Bivona
                                    Title:  Group Vice President

                                       6
<PAGE>

                                                 BANK OF AMERICA, N.A.
                                                 -----------------------------

                                                 By: /s/ HENRY Y. YU
                                                    --------------------------
                                                    Name:  Henry Y. Yu
                                                    Title:  Managing Director

                                       7
<PAGE>

                                              The Bank of New York

                                              By: /s/ JAMES W. WHITAKER
                                                 -----------------------------
                                                  Name:  James W. Whitaker
                                                  Title: Senior Vice President

                                       8
<PAGE>

                                                 COMERICA BANK
                                                 -----------------------------
                                                [PLEASE PRINT NAME OF BANK]

                                                By: /s/ HOPE MCINERNEY
                                                   ---------------------------
                                                    Name:  Hope McInerney
                                                    Title: Vice President

                                       9
<PAGE>

                                        FARALLON JACUZZI, LLC
                                        ---------------------------------------
                                        By:  FARALLON CAPITAL MANAGEMENT, LLC
                                           ------------------------------------
                                           By: /s/ MARK C. WEHRLY
                                              ---------------------------------
                                              Name:  Mark C. Wehrly
                                              Title: Managing Member

                                        AUTHORIZED CO-SIGNATORY:

                                        WATERSHED ASSET MANAGEMENT, LLC
                                        AS SUB-ADVISOR
                                        ---------------------------------------
                                        By: /s/ MERIDEE A. MOORE
                                           ------------------------------------
                                            Name:  Meridee A. Moore
                                            Title: Senior Managing Member

                                       10
<PAGE>

                                        GOLDMAN SACHS CREDIT PARTNERS, L.P.
                                        ---------------------------------------
                                        [PLEASE PRINT NAME OF BANK]
                                        ---------------------------------------

                                        By: /s/ JOHN MAKRINOS
                                            -----------------------------------
                                            Name:  John Makrinos
                                            Title: Authorized Signatory

                                       11
<PAGE>

                                        HSBC Bank USA

                                        By: /s/ JOHN P. NORTHINGTON
                                            -----------------------------------
                                            Name:  John P. Northington
                                            Title: Vice President

                                       12
<PAGE>

                                        JP Morgan Chase Bank

                                        By: /s/ STEPHANIE PARKER
                                            -----------------------------------
                                            Name:  Stephanie Parker
                                            Title: Vice President

                                       13
<PAGE>

                                 The President & Fellows of Harvard College
                                 (REF. Harvard Special Situations Account)

                                 By: Whippoorwill Associates, Incorporated
                                 Its Agent and Authorized Signatory

                                 By: /s/ SHELLEY F. GREENHAUS
                                     ---------------------------------------
                                     Name:  Shelley F. Greenhaus
                                     Title: Managing Director

                                       14
<PAGE>

                                        ROYAL BANK OF CANADA
                                        ---------------------------------------
                                        [PLEASE PRINT NAME OF BANK]

                                        By: /s/ R.S. CHANG
                                            -----------------------------------
                                            Name:  R.S. Chang
                                            Title: Vice President

                                       15
<PAGE>

                                        Sumitomo Mitsui Banking Corporation

                                        By: /s/ EDWARD D. HENDERSON, JR.
                                            -----------------------------------
                                            Name:  Edward D. Henderson, Jr.
                                            Title: Joint General Manager

                                       16
<PAGE>

                                    EXHIBIT A

                              Please see attached.<PAGE>
                                                                EXHIBIT 10.13(c)

                              U.S. INDUSTRIES, INC.
                                MASTER AGREEMENT

                              AMENDMENT AND CONSENT
                          DATED AS OF OCTOBER 30, 2002

                  This AMENDMENT AND CONSENT dated as of October 30, 2002, to
the Amendment, Restatement, General Provisions and Intercreditor Agreement dated
as of August 15, 2001 and amended and restated as of September 23, 2002, between
U.S. Industries, Inc. ("USI"), USI Global Corp., USI American Holdings, Inc.,
USI Atlantic Corp., Rexair Holdings, Inc., Rexair, Inc. and the other
subsidiaries of USI party thereto as Loan Parties, Wilmington Trust Company and
David A. Vanaskey, not in their individual capacities, but solely as Collateral
Trustees, Bank of America, N.A., as agent and the various bank and other lender
parties thereto (as amended, amended and restated, supplemented or otherwise
modified from time to time, the "MASTER AGREEMENT"). Capitalized terms used
without definition in this Amendment and Consent shall have the meanings set
forth in the Master Agreement.

                              W I T N E S S E T H:

                  WHEREAS, USI has agreed with holders of its 2003 Notes to
revise certain terms of its Exchange Offer (the "REVISED EXCHANGE OFFER")
pursuant to the Amended and Restated Offering Circular and Consent Solicitation
Statement dated September 9, 2002, as amended October 10, 2002 by USI and
certain of its Subsidiaries as Issuers in connection with the 2003 Notes;

                  WHEREAS, USI has made an offer to holders of its 7-1/4% Senior
Notes due December 1, 2006, in the original principal amount of $125,000,000
(the "2006 Notes") to purchase up to a maximum of $54,800,000 in aggregate
principal amount of the 2006 Notes (the "2006 NOTES TENDER OFFER") on the terms
and conditions set forth in the Offer to Purchase and Consent Solicitation
Statement dated as of October 24, 2002 by USI and certain of its Subsidiaries as
Issuers;

                  WHEREAS, the Loan Parties have requested that the Banks agree
to provide certain amendments to the Master Agreement, the Pledge and Security
Agreement and the Collateral Trust Agreement in connection with the Revised
Exchange Offer and the 2006 Notes Tender Offer, and consent to the terms and
conditions of the Revised Exchange Offer;

                  WHEREAS, the Banks are willing to grant the request of the
Loan Parties and waive compliance with certain provisions of the Master
Agreement and amend the Master Agreement, the Pledge and Security Agreement and
the Collateral Trust Agreement as hereinafter set forth;

<PAGE>

                  NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and subject to the
terms and conditions hereof, the parties hereto agree as follows:

                  SECTION 1. AMENDMENT OF MASTER AGREEMENT. Subject to the
occurrence of the Effective Date, the Master Agreement is amended as follows:

                  (a) The definition of "EXCHANGE OFFER" in Section 1.01 of the
         Master Agreement is amended in its entirety to read as follows:

                  "`EXCHANGE OFFER' means the offer to the holders of the 2003
         Notes pursuant to the Amended and Restated Offering Circular and
         Consent Solicitation Statement dated September 9, 2002, as amended
         October 10, 2002 by USI and certain of its Subsidiaries, as issuers, to
         exchange such holders' 2003 Notes for Extended Notes and each such
         holder's ratable share of the amount of cash collateral in the Notes
         Escrow Account allocable to such 2003 Notes."

                  (b) The definition of "EXTENDED NOTES" in Section 1.01 of the
         Master Agreement is amended in its entirety to read as follows:

                  "`EXTENDED NOTES' means the notes issued in connection with
         the Exchange Offer as partial consideration for the 2003 Notes of the
         exchanging Noteholders on the terms and conditions set forth in the
         Amended and Restated Offering Circular and Consent Solicitation
         Statement dated September 9, 2002, as amended October 10, 2002 by USI
         and certain of its Subsidiaries as issuers, which terms and conditions
         shall be satisfactory to the Debt Coordinator and shall include,
         without limitation, each of the following:

                  (i) the terms of the Exchange Offer shall not include (A) the
                  payment of any fees or other cash compensation to the holders
                  of the Extended Notes (other than (I) a consent fee payable to
                  each Noteholder participating in the Exchange Offer in an
                  aggregate amount not to exceed 1.50% of the face amount of the
                  Extended Notes issued to such Noteholder, which consent fee
                  may be paid from operating cash flow and (II) cash payments
                  made from operating cash flow as fractional consideration for
                  individual 2003 Notes each in an amount of less than $1000) or
                  (B) any other payments to the holders of the Extended Notes
                  (other than permitted payments from the Notes Escrow Account,
                  which payments shall be made, in the absence of a Default,
                  solely from amounts in the Notes Escrow Account allocable to
                  such Extended Notes);

                  (ii) the Exchange Offer shall not result in any change in the
                  respective collateral positions of the Noteholders and the
                  Banks that would be adverse to the Banks;

                  (iii) the Extended Notes shall not include any additional
                  material covenants other than the Extended Notes Mandatory
                  Redemption; and

                  (iv) the maturity of the Extended Notes shall be no earlier
                  than December 31, 2004."

                                       2
<PAGE>

                  (c) Clause (i) of the definition of "NOTES" in Section 1.01 of
         the Master Agreement is amended by inserting the parenthetical "(the
         "2006 NOTES")" after the words "the 7-1/4% Senior Notes due December 1,
         2006";

                  (d) Section 1.01 of the Master Agreement is amended by
         inserting the following definitions in their proper alphabetical order:

                  "EXTENDED NOTES MANDATORY REDEMPTION" means the mandatory
         redemption of the principal amount of the Extended Notes described in
         Section 1110 of the Indenture described in clause (ii) of the
         definition of "Notes Indentures", as amended in connection with the
         consummation of the Exchange Offer, which mandatory redemption shall be
         payable solely from amounts in the Notes Escrow Account allocable to
         the Extended Notes.

                  "TENDER OFFER" means the offer by USI to holders of the 2006
         Notes to tender such holders' 2006 Notes for each such holder's ratable
         share of the amount of cash collateral in the Notes Escrow Account
         allocable to the 2006 Notes on the terms and conditions set forth in
         the Offer to Purchase and Consent Solicitation Statement dated as of
         October 24, 2002 by USI and certain of its Subsidiaries as issuers,
         which terms and conditions shall be satisfactory to the Debt
         Coordinator and shall include, without limitation, each of the
         following:

                           (i) the terms of the Tender Offer shall not include
                  (A) the payment of any fees, premiums or other cash
                  compensation (other than cash payments made from operating
                  cash flow as fractional consideration for individual 2006
                  Notes each in an amount of less than $1000) or (B) any other
                  payments to the holders of the 2006 Notes (other than
                  permitted payments from the Notes Escrow Account, which
                  payments shall be made, in the absence of a Default, solely
                  from amounts in the Notes Escrow Account allocable to such
                  2006 Notes);

                           (ii) the Tender Offer shall not result in any change
                  in the respective collateral positions of the Noteholders and
                  the Banks that would be adverse to the Banks; and

                           (iii) the Tender Offer shall not result in the
                  addition of any material covenants to the 2006 Notes other
                  than the 2006 Notes Mandatory Offer to Purchase.

                  "2006 NOTES" has the meaning specified in the definition of
                  "NOTES".

                  "2006 NOTES MANDATORY OFFER TO PURCHASE" means the mandatory
                  offer to purchase 2006 Notes described in Section 1014 of the
                  Indenture described in clause (i) of the definition of "Notes
                  Indentures", as amended in connection with the consummation of
                  the Tender Offer, which purchase shall be made solely from
                  amounts in the Notes Escrow Account allocable to the 2006
                  Notes.

                                       3
<PAGE>

                  (e) Section 6.02(k) of the Master Agreement is amended by
         inserting after the words "including as permitted in connection with
         the Exchange Offer" in the eleventh line thereof, the following:

                  ", any Extended Notes Mandatory Redemption, the Tender Offer
                  and any 2006 Notes Mandatory Offer to Purchase"

                  (f) Section 6.02(1) of the Master Agreement is amended by
         inserting after the words "the Exchange Offer" in the second line
         thereof, the following:

                  "and the Tender Offer"; and

                  (g) Section 8.07 of the Master Agreement is amended by (i)
         deleting the title thereof in its entirety and replacing it with the
         following title, "RELEASE OF LIEN IN CONNECTION WITH EXCHANGE OFFER AND
         TENDER OFFER.", (ii) amending each of the phrases (A) "2003 Notes
         converted into Extended Notes" and (B) "Extended Notes" set forth in
         Section 8.07(a) in its entirety to read "2003 Notes that are tendered"
         and (iii) adding the following new clauses (c), (d) and (e) at the end
         thereof:

                           "(c) Upon the consummation of the Tender Offer, the
                  aggregate amount of funds in the Notes Escrow Account
                  allocable to the 2006 Notes tendered pursuant to the Tender
                  Offer as on such date shall be automatically released from the
                  Rexair Debt Lien, the Shared Collateral Lien and/or the
                  Non-Shared Lien, as applicable, as and when used to redeem the
                  2006 Notes tendered in connection therewith."

                           "(d) Upon the consummation of any Extended Notes
                  Mandatory Redemption, the aggregate amount of funds in the
                  Notes Escrow Account allocable to the Extended Notes pursuant
                  to the Extended Notes Mandatory Redemption as on such date
                  shall be automatically released from the Rexair Debt Lien, the
                  Shared Collateral Lien and/or the Non-Shared Lien, as
                  applicable, as and when ratably applied to the principal on
                  the Extended Notes that are redeemed."

                           "(e) Upon the consummation of any 2006 Notes
                  Mandatory Offer to Purchase, the aggregate amount of funds in
                  the Notes Escrow Account allocable to the 2006 Notes pursuant
                  to the 2006 Notes Mandatory Offer to Purchase as on such date
                  shall be automatically released from the Rexair Debt Lien, the
                  Shared Collateral Lien and/or the Non-Shared Lien, as
                  applicable, as and when ratably applied to the principal on
                  the 2006 Notes that are purchased."

                  SECTION 2. CONSENT. Subject to the occurrence of the Effective
Date, the Banks hereby consent to the terms and conditions of the Exchange Offer
and Tender Offer pursuant to the Revised Exchange Offer and 2006 Notes Tender
Offer, respectively, as set forth in Section 1 above.

                  SECTION 3. AMENDMENT OF COLLATERAL TRUST AGREEMENT. The
Collateral Trust Agreement is amended as follows:

                                       4
<PAGE>

                  (a) Preliminary Statement (3) of the Collateral Trust
         Agreement is amended in its entirety to read as follows:

                           "(3) USI, USI Global and USI American, as issuers,
                  and USI Atlantic, as guarantor, are obligors (the "NOTE
                  OBLIGORS") with respect to (i) those certain 7-1/4% Senior
                  Notes due December 1, 2006 (as amended, modified, extended,
                  renewed, replaced, restated or supplemented from time to time,
                  the "7-1/4% NOTES"), issued pursuant to that certain Indenture
                  dated as of December 12, 1996 with Wells Fargo Bank Minnesota,
                  National Association, as trustee (as amended, modified,
                  extended, renewed, replaced, restated or supplemented from
                  time to time, the "7-1/4% NOTES INDENTURE"), (ii) those
                  certain 7-1/8% Senior Notes due October 15, 2003 (as amended,
                  modified, extended, renewed, replaced, restated or
                  supplemented from time to time, the "7-1/8% NOTES"), issued
                  pursuant to that certain Indenture dated as of October 27,
                  1998 with Bank One Trust Company, N.A., as trustee (as
                  amended, modified, extended, renewed, replaced, restated or
                  supplemented from time to time, the "7-1/8% NOTES INDENTURE"
                  and, together with the 7-1/4% Notes Indenture, the "NOTE
                  INDENTURES") and (iii) those certain 11-1/4% Senior Notes due
                  December 31, 2005 (as amended, modified, extended, renewed,
                  replaced, restated or supplemented from time to time, the
                  "EXTENDED NOTES" and, together with the 7-1/4% Notes and the
                  7-1/8% Notes, the "NOTES"), issued pursuant to the 7-1/8%
                  Notes Indenture."

                  (b) The following new defined terms are added to Section 1.01
         of the Collateral Trust Agreement in their proper alphabetical order:

                           "EXTENDED NOTE HOLDERS" means, at any time, the
                  registered holders of the Extended Notes issued under the
                  7-1/8% Notes Indenture.

                           "EXTENDED NOTES" has the meaning set forth in the
                  Preliminary Statements.

                           "EXTENDED NOTES TRUSTEE" means Bank One Trust
                  Company, N.A. (successor in interest to The First National
                  Bank of Chicago), as Trustee for the Extended Note Holders,
                  and any successor trustee for the Extended Note Holders
                  appointed under the 7-1/8% Notes Indenture.

                  (c) The following defined terms set forth in Section 1.01 of
         the Collateral Trust Agreement are amended in their entirety to read as
         follows:

                           "FOREIGN COLLATERAL" means all collateral and charged
                  assets pledged for the benefit of the applicable Secured
                  Holders pursuant to any Foreign Collateral Document.

                           "FOREIGN COLLATERAL DOCUMENTS" means those security
                  documents set forth on Schedule II hereto (as such Schedule II
                  may be amended, supplemented or modified from time to time
                  upon written notice from the Debt Coordinator to the Security

                                       5
<PAGE>

                  Trustee) pursuant to which any Pledgors have agreed to pledge
                  the charged assets referred to therein as Foreign Collateral
                  for the benefit of the applicable Secured Holders, as such
                  security documents may be amended, amended and restated,
                  supplemented or otherwise modified from time to time.

                           "NOTES" has the meaning specified in the Preliminary
                  Statements.

                           "NOTE HOLDERS" means, individually and collectively,
                  the 7-1/8% Note Holders, the 7-1/4% Note Holders and the
                  Extended Note Holders.

                           "REPRESENTATIVES" means, at any time, collectively,
                  (a) the Debt Coordinator, as representative of the Credit
                  Parties, (b) the 7-1/4% Notes Trustee, as the representative
                  of the 7-1/4% Note Holders at such time, (c) the 7-1/8% Notes
                  Trustee, as representative of the 7-1/8% Note Holders at such
                  time and (d) the Extended Notes Trustee, as representative of
                  the Extended Note Holders at such time. For all purposes of
                  this Agreement, the USI Agent will be the Representative for
                  all Hedge Banks, Independent L/C Issuers, Controlled Deposit
                  Account Banks and Cash Management Services Banks.

                           "7-1/4% NOTES TRUSTEE" means Wells Fargo Bank
                  Minnesota, National Association (or its successor in
                  interest), as Trustee for the 7-1/4% Note Holders, and any
                  successor trustee for the 7-1/4% Note Holders appointed under
                  the 7-1/4% Notes Indenture.

                           "SECURED HOLDERS" means, at any time, the Credit
                  Parties and the Note Holders at such time.

                  (d) The definition of "SECURED OBLIGATIONS" set forth in
         Section 1.01 of the Collateral Trust Agreement is amended to (i) delete
         the word "and" from subsection (b) thereof, (ii) replace the period at
         the end of subsection (c) thereof with the phrase "; and" and (iii) add
         a new subsection (d) thereto to read in its entirety as follows:

                           "(d) in the case of the Secured Obligations of
                  Secured Holders represented by the Extended Notes Trustee
                  under the 7-1/8% Notes Indenture, the Total Principal Exposure
                  then outstanding under Extended Notes."

                  (e) The phrase "the applicable Secured Holders and their
         respective Representatives" shall replace (i) the phrase "the Credit
         Parties and their Representative" in each case where it appears in
         Section 7.14(b) of the Collateral Trust Agreement and (ii) the phrase
         "the Representative and the Credit Parties" where it appears in Section
         7.14(c) of the Collateral Trust Agreement.

                  (f) The Collateral Trust Agreement is amended to add the
         following new Section 7.14(d) thereto:

                                       6
<PAGE>

                           "(d) The provisions of this Section 7.14 shall
                  neither (i) affect whether a security interest in Foreign
                  Collateral is granted for the Equal and Ratable Benefit of the
                  Note Holders under Section 2.02(b) hereof nor (ii) be deemed
                  to effect a grant or pledge of a security interest in Foreign
                  Collateral, any such grant or pledge of which shall arise
                  under the applicable Foreign Collateral Document."

                  SECTION 4. AMENDMENT OF PLEDGE AND SECURITY AGREEMENT. The
Pledge and Security Agreement is amended as follows:

                  (a) The first sentence of Preliminary Statement (3) of the
         Pledge and Security Agreement is amended in its entirety to read as
         follows:

                           "(3) The Borrowers are also joint and several
                  co-obligors with respect to (i) those certain 7-1/4% Senior
                  Notes due December 1, 2006 (as amended, modified, extended,
                  renewed, replaced, restated or supplemented from time to time,
                  the "7-1/4% NOTES"), issued pursuant to that certain Indenture
                  dated as of December 12, 1996 with Wells Fargo Bank Minnesota,
                  National Association, as trustee (as amended, modified,
                  extended, renewed, replaced, restated or supplemented from
                  time to time, the "7-1/4% NOTES INDENTURE"), (ii) those
                  certain 7-1/8% Senior Notes due October 15, 2003 (as amended,
                  modified, extended, renewed, replaced, restated or
                  supplemented from time to time, the "7-1/8% NOTES"), issued
                  pursuant to that certain Indenture dated as of October 27,
                  1998 with Bank One Trust Company, N.A., as trustee (as
                  amended, modified, extended, renewed, replaced, restated or
                  supplemented from time to time, the "7-1/8% NOTES INDENTURE"
                  and, together with the 7-1/4% Notes Indenture, the "NOTE
                  INDENTURES") and (iii) those certain 11-1/4% Senior Notes due
                  December 31, 2005 (as amended, modified, extended, renewed,
                  replaced, restated or supplemented from time to time, the
                  "EXTENDED NOTES" and, together with the 7-1/4% Notes and the
                  7-1/8% Notes, the "NOTES"), issued pursuant to the 7-1/8%
                  Notes Indenture."

                  (b) The words "7-1/4% Notes and the 7-1/8%" are deleted from
         Section 2(a) of the Pledge and Security Agreement.

                  SECTION 5. CONDITIONS TO EFFECTIVENESS. The provisions of
Section 1 and 2 of this Amendment and Consent shall become effective as of the
date first above written (the "EFFECTIVE DATE") when, and only when, the Debt
Coordinator shall have received confirmation of each of the following, each in
form and substance satisfactory to the Debt Coordinator:

                  (i) EXECUTION OF COUNTERPARTS. The Debt Coordinator shall have
         received counterparts of this Amendment and Consent duly executed by
         each of the Loan Parties and the Majority Banks.

                  (ii) PAYMENT OF FEES AND EXPENSES. The Debt Coordinator shall
         have determined that all agency, trustee, custodial, filing service,
         legal and other fees and disbursements incurred and invoiced through

                                       7
<PAGE>

         the day immediately prior to the Effective Date, including all fees of
         the Collateral Trustees and the Debt Coordinator and their respective
         counsel and of the Financial Advisor, shall have been paid in full by
         the Loan Parties.

                  (iii) NO DEFAULT. No Default shall have occurred or be
         continuing, other than a Default that shall be cured by the
         effectiveness hereof.

                  SECTION 6. CONFIRMATION OF REPRESENTATIONS AND WARRANTIES AND
CERTAIN ACKNOWLEDGEMENTS AND AGREEMENTS. Each of the Loan Parties hereby
represents and warrants, on and as of the Effective Date, that the
representations and warranties contained in the Master Agreement are correct and
true in all material respects on and as of the date hereof, before and after
giving effect to this Amendment and Consent, as though made on and as of the
date hereof, other than any such representations or warranties that, by their
terms, refer to a specific date. In addition, each of the Loan Parties hereby
acknowledges and restates, on and as of the Effective Date, each of its
statements and agreements in Sections 8.02(d) and 8.03 of the Master Agreement.

                  SECTION 7. REFERENCE TO AND EFFECT ON THE TRANSACTION
DOCUMENTS. (a) On and after the effectiveness of this Amendment and Consent,
each reference in the Master Agreement to "hereunder", "hereof" or words of like
import referring to the Master Agreement, and each reference in the other
Transaction Documents to the "Master Agreement", "thereunder", "thereof" or
words of like import referring to the Master Agreement, shall mean and be a
reference to the Master Agreement as modified by this Amendment and Consent.

                  (b) On and after the effectiveness of this Amendment and
Consent, each reference in the Collateral Trust Agreement to "hereunder",
"hereof" or words of like import referring to the Collateral Trust Agreement,
and each reference in the other Transaction Documents to the "Collateral Trust
Agreement", "thereunder", "thereof" or words of like import referring to the
Collateral Trust Agreement, shall mean and be a reference to the Collateral
Trust Agreement as modified by this Amendment and Consent.

                  (c) The execution, delivery and effectiveness of this
Amendment and Consent shall not, except as expressly provided herein, operate as
a waiver of any right, power or remedy of any Bank or the Debt Coordinator under
any of the Transaction Documents, nor constitute a waiver of any provision of
any of the Transaction Documents.

                  SECTION 8. EXECUTION IN COUNTERPARTS. This Amendment and
Consent may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute but one and
the same agreement. Delivery of an executed counterpart of a signature page to
this Amendment and Consent by telecopier shall be effective as delivery of a
manually executed counterpart of this Amendment and Consent.

                  SECTION 9. GOVERNING LAW. This Amendment and Consent shall be
governed by, and construed in accordance with, the laws of the State of New

                                       8
<PAGE>

York, and shall be subject to the jurisdictional and service provisions of the
Master Agreement, as if this were a part of the Master Agreement.

                  SECTION 10. ENTIRE AGREEMENT; MODIFICATION. This Amendment and
Consent constitutes the entire agreement of the parties hereto with respect to
the subject matter hereof, there being no other agreements or understandings,
oral, written or otherwise, respecting such subject matter, any such agreement
or understanding being superseded hereby, shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns, and
may not be amended, extended or otherwise modified, except in a writing executed
in whole or in counterparts by each party hereto.

                  SECTION 11. WAIVER PROVISIONS. This Amendment and Consent is
subject to the provisions of Section 10.01 of the Master Agreement, Section 22
of the Pledge and Security Agreement and Section 9.01 of the Collateral Trust
Agreement.

              [The rest of this page is intentionally left blank.]

                                       9
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment and Consent to be duly executed and delivered by their proper and duly
authorized officers as of the day and year first above written.

AS OBLIGORS AND LOAN PARTIES:          AS LOAN PARTIES:

U.S. INDUSTRIES, INC.                  ASTERIA COMPANY
USI AMERICAN HOLDINGS, INC.            BATHCRAFT, INC.
USI ATLANTIC CORP.                     BAYLIS BROTHERS INC.
USI GLOBAL CORP.                       BRUCKNER MANUFACTURING CORP.
REXAIR, INC.                           CARLSBAD CORP.
REXAIR HOLDINGS, INC.                  COMPAX CORP.
                                       ELJER INDUSTRIES, INC.
                                       ELJER PLUMBINGWARE, INC.
                                       ENVIRONMENTAL ENERGY COMPANY
                                       EZ HOLDINGS, INC.
                                       GARY CONCRETE PRODUCTS, INC.
                                       GATSBY SPAS, INC.
                                       HL CAPITAL CORP.
                                       JACUZZI INC.
                                       JACUZZI WHIRLPOOL BATH, INC.
                                       JUSI HOLDINGS, INC.
                                       KLI, INC.
                                       KRIKLES CANADA U.S.A., INC.
                                       KRIKLES EUROPE U.S.A., INC.
                                       KRIKLES, INC.
                                       LOKELANI DEVELOPMENT CORPORATION
                                       LUXOR INDUSTRIES INC.
                                       MAILI KAI LAND DEVELOPMENT CORPORATION
                                       MOBILITE, INC.
                                       NEPCO OF AUSTRALIA, INC.
                                       NEPCO OF CANADA, INC.
                                       NEPCO OF FORD HEIGHTS, INC.
                                       NEPCO OF FULTON, INC.
                                       NISSEN UNIVERSAL HOLDINGS INC.
                                       OUTDOOR PRODUCTS LLC
                                       PH PROPERTY DEVELOPMENT COMPANY
                                       PLC REALTY INC.
                                       REDMONT, INC.
                                       SANITARY-DASH MANUFACTURING CO., INC.
                                       SHELBY PROPERTIES, INC.
                                       STRATEGIC CAPITAL MANAGEMENT, INC.
                                       STRATEGIC MEMBERSHIP COMPANY
                                       STREAMWOOD CORPORATION
                                       SUNDANCE SPAS, INC.
                                       TA LIQUIDATION CORP.
                                       TRIMFOOT CO.
                                       TT LIQUIDATION CORP.
                                       UGE LIQUIDATION INC.
                                       UNITED STATES BRASS CORPORATION
                                       USI CAPITAL, INC.
                                       USI FUNDING, INC.
                                       USI PROPERTIES, INC.
                                       USI REALTY CORP.

                                       10
<PAGE>

                                ZURCO, INC.
                                ZURNACQ OF CALIFORNIA, INC.
                                ZURN (CAYMAN ISLANDS), INC.
                                ZURN CONSTRUCTORS, INC.
                                ZURN DEVCO, INC.
                                ZURN EPC SERVICES, INC.
                                ZURN GOLF HOLDING CORPORATION
                                ZURN INDUSTRIES, INC.

                                By  /s/ STEVEN C. BARRE
                                    ------------------------------------------
                                    Name:  Steven C. Barre
                                    Title: Vice President/Senior Vice President

                                       11
<PAGE>

                                               COLLATERAL TRUSTEES:

                                               WILMINGTON TRUST COMPANY, not in
                                               its individual capacity but
                                               solely as Collateral Trustee
                                               (such agreement being solely with
                                               respect to Sections 1(g), 3 and 4
                                               hereof)

                                               By: /s/ BRUCE L. BISSON
                                                  -----------------------------
                                               Name: Bruce L. Bisson
                                               Title: Vice President

                                               DAVID A. VANASKEY, not in his
                                               individual capacity but solely as
                                               Collateral Trustee (such
                                               agreement being solely with
                                               respect to Sections 1(g), 3 and 4
                                               hereof)

                                               /s/ DAVID A. VANASKEY
                                               --------------------------------

                                       12
<PAGE>

                                               Bank of America, N.A.

                                               By: /s/ HENRY Y. YU
                                                  -----------------------------
                                                  Name: Henry Y. Yu
                                                  Title: Managing Director

                                       13
<PAGE>

                                               The Bank of New York

                                               By: /s/ JAMES W. WHITAKER
                                                  -----------------------------
                                                  Name:  James W. Whitaker
                                                  Title: Senior Vice President

                                       14
<PAGE>

                                               COMERICA BANK
                                               --------------------------------
                                               [PLEASE PRINT NAME OF BANK]

                                               By: /s/ HOPE MCINERNEY
                                                  -----------------------------
                                                  Name:  Hope McInerney
                                                  Title: Vice President

                                       15
<PAGE>

                                         FARALLON JACUZZI, LLC
                                         --------------------------------------
                                         By: FARALLON CAPITAL MANAGEMENT, LLC
                                            -----------------------------------
                                             By:  /s/ MARK C. WEHRLY
                                                -------------------------------
                                                Name:  Mark C. Wehrly
                                                Title: Managing Member

                                        AUTHORIZED CO-SIGNATORY:

                                        WATERSHED ASSET MANAGEMENT, LLC
                                        AS SUB-ADVISOR
                                        ---------------------------------------
                                        By:  /s/ MERIDEE A. MOORE
                                            -----------------------------------
                                            Name:  Meridee A. Moore
                                            Title:  Senior Managing Member

                                       16
<PAGE>

                                       HSBC BANK USA

                                       By:  /s/ JOHN P. NORTHINGTON
                                            -----------------------------------
                                            Name:  John P. Northington
                                            Title:  Vice President

                                       17
<PAGE>

                                         JPMorgan Chase Bank

                                         By:  /s/ STEPHANIE PARKER
                                            -----------------------------------
                                             Name:  Stephanie Parker
                                             Title:  Vice President

                                       18
<PAGE>

                                            MARINER LDC
                                            -----------------------------------
                                            [PLEASE PRINT NAME OF BANK]

                                            By: /s/ C. HOWE
                                               --------------------------------
                                                Name:  C. Howe
                                                Title: Director

                                       19
<PAGE>

                                     The President & Fellows of Harvard College
                                     (REF. Harvard Special Situations Account)

                                     By:  Whippoorwill Associates, Incorporated
                                     Its Agent and Authorized Signatory

                                     By:  /s/ SHELLEY F. GREENHAUS
                                        ---------------------------------------
                                          Name:  Shelley F. Greenhaus
                                          Title:  Managing Director

                                       20
<PAGE>

                                               ROYAL BANK OF CANADA

                                               By: /s/ RIZWAN AHMAD
                                                   ----------------------------
                                                   Name:  Rizwan Ahmad
                                                   Title: Senior Manager

                                       21

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