Exhibit 10.54
SUPPLEMENT AND FIRST AMENDMENT TO PLEDGE AGREEMENT
This SUPPLEMENT AND FIRST AMENDMENT TO PLEDGE AGREEMENT (this
"SUPPLEMENT AND FIRST Amendment"), dated as of October 16, 2003, between JBI
HOLDINGS LIMITED, an English corporation ("JBI HOLDINGS"), the Pledgors party to
the Pledge Agreement referred to below and FLEET CAPITAL CORPORATION, a Rhode
Island corporation, in its capacity as the Administrative Agent (in such
capacity, (the "ADMINISTRATIVE AGENT") for the Revolving Credit Lenders and the
Term Loan B Lenders (collectively, the "LENDERS") party to the Loan Agreement
referred to below.
RECITALS
WHEREAS, pursuant to that certain Loan and Security Agreement dated as
of July 15, 2003 (as amended by the First Amendment thereto, and as it may
hereafter be further amended, restated, supplemented or otherwise modified, the
"LOAN AGREEMENT"), by and among Jacuzzi Brands, Inc., a Delaware corporation
("JACUZZI"), certain Subsidiaries of Jacuzzi (collectively, with Jacuzzi, the
"BORROWERS"), the Administrative Agent, Silver Point Finance, LLC, as agent for
the Term Loan B Lenders, and the Lenders from time to time party thereto, the
Lenders have made and continue to make loans available to the Borrowers;
WHEREAS, pursuant to a Pledge Agreement, dated as of July 15, 2003 (as
supplemented and amended hereby and as it may hereafter be further amended,
restated, supplemented or otherwise modified, the "PLEDGE AGREEMENT"), Jacuzzi
and certain Subsidiaries of Jacuzzi (collectively, the "Pledgors") have pledged
to the Administrative Agent the shares of stock owned by the Pledgors and
described on Schedule I to the Pledge Agreement, as security for the Obligations
under the Loan Agreement;
WHEREAS, the Lenders, by the terms of the First Amendment to the Loan
Agreement, have consented to the formation of JBI Holdings and to certain
corporate restructuring transactions involving Jacuzzi, certain of its existing
Subsidiaries and JBI Holdings, subject to the conditions, among others, that JBI
Holdings agree to become a party to the Pledge Agreement, that JBI Holdings
pledge all of the shares of USI American Holdings, Inc., which will be held by
JBI Holdings following such restructuring transactions, that Jacuzzi pledge all
of the shares of JBI Holdings, which will be held by Jacuzzi following such
restructuring transactions, and that USI American Holdings, Inc. pledge all of
the shares of USI Global Corp., which will be held by USI American Holdings,
Inc. following such restructuring transactions;
NOW, THEREFORE, in consideration of the premises and the mutual
covenants hereinafter contained and the Revolving Credit Lenders and Term Loan B
Lenders continuing to make Loans available under the terms of the Loan Agreement
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:
1. DEFINED TERMS. Except as otherwise defined herein, all defined terms
herein shall have the respective meanings ascribed thereto in Loan Agreement and
Appendix A thereto.
2. GRANT OF SECURITY INTEREST. JBI Holdings hereby grants to the
Administrative Agent a Lien upon all of its Pledged Collateral of the types
described in Section 2 of the Pledge Agreement, including, without limitation,
the shares set forth on Schedule I to this Supplement and First Amendment, as
and to the extent set forth in the Pledge Agreement and to the same extent as if
JBI Holdings had been a party to the Pledge Agreement on the Closing Date. The
terms of the Pledge Agreement are incorporated herein by reference in their
entirety as though fully set forth herein. Each reference to "Pledgor" or
"Pledgors" contained in the Pledge Agreement shall, and shall be deemed to,
include a reference to JBI Holdings. Each reference in the Pledge Agreement to
"this Pledge Agreement", "herein", hereof" and words of like import and each
reference in the other Loan Documents or the Intercreditor Agreement to the
Pledge Agreement shall mean the Pledge Agreement as supplemented hereby.
3. AMENDMENTS TO PLEDGE AGREEMENT.
a. The definition of "Pledged Stock" in Section 1 of the Pledge
Agreement is amended and restated in its entirety as follows:
"PLEDGED STOCK" means one hundred percent (100%) of the capital stock
and other equity interests of each Domestic Subsidiary owned by any
Pledgor, one hundred percent (100%) of the capital stock and other
equity interests of JBI Holdings Limited owned by any Pledgor and sixty
five percent (65%) of the voting capital stock and other equity
interests of each first-tier Foreign Subsidiary (other than JBI
Holdings Limited) owned by any Pledgor other than, in each case,
capital stock and other equity interests of any Immaterial Subsidiary.
b. Schedule I to the Pledge Agreement is amended as and to the extent
set forth on Schedule I to this Supplement and First Amendment.
c. The Pledge Agreement shall continue in full force and effect as
supplemented and amended hereby
4. GOVERNING LAW. THIS SUPPLEMENT AND FIRST AMENDMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, this Supplement and First Amendment to Pledge
Agreement has been duly executed as of the date first written above.
EXECUTED AS A DEED AND DELIVERED BY:
JBI HOLDINGS LIMITED
By: /s/ Xxxxxxx X. Park
-------------------------------------
Title: Director
By: /s/ Xxxxxx X. Xxxxx
-------------------------------------
Title: Director/Secretary
FLEET CAPITAL CORPORATION,
as Administrative Agent
By: /s/ Xxxxx Xxxxxxx
-------------------------------------
Title: Senior Vice President
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PLEDGORS:
Jacuzzi Brands, Inc.
Bathcraft, Inc.
Eljer Plumbingware, Inc.
Gatsby Spas, Inc.
Jacuzzi Inc.
JUSI Holdings, Inc.
Redmont, Inc.
Rexair, Inc.
Sundance Spas, Inc.
USI American Holdings, Inc.
USI Global Corp.
Zurco, Inc.
Xxxx Industries, Inc.,
Xxxx PEX, Inc.
Asteria Company
(f/k/a Elite Bath Company)
Xxxxxx Brothers Inc.
Xxxxxxxx Manufacturing Corp.
(f/k/a Farberware Inc.)
Carlsbad Corp.
(f/k/a Odyssey Sports, Inc.)
Compax Corp.
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Eljer Industries, Inc.
Environmental Energy Company
Xxxx Concrete Products, Inc.
HL Capital Corp.
Jacuzzi Whirlpool Bath, Inc.
KLI, Inc. (f/k/a Xxxxxx Ladders, Inc.)
Krikles Canada U.S.A., Inc.
(f/k/a Selkirk Canada U.S.A., Inc.)
Krikles Europe U.S.A., Inc.
(f/k/a Selkirk Europe U.S.A., Inc.)
Krikles, Inc. (f/k/a Selkirk, Inc.)
Lokelani Development Corporation
Luxor Industries Inc.
Maili Kai Land Development Corporation
Mobilite, Inc.
Xxxxxx Universal Holdings Inc.
Outdoor Products LLC
PH Property Development Company
PLC Realty Inc.
(f/k/a Prescolite Lite Controls, Inc.)
Rexair Holdings, Inc.
Sanitary - Dash Manufacturing Co., Inc.
SH 1 Inc.
Strategic Capital Management, Inc.
Strategic Membership Company
Streamwood Corporation
(f/k/a Quantum Performance Films, Inc.)
TA Liquidation Corp.
(f/k/a Xxxxx Xxxxxx Golf Company)
Trimfoot Co.
TT Liquidation Corp.
UGE Liquidation Inc.
(f/k/a W.K. 25, Inc.)
USI Atlantic Corp.
USI Capital, Inc.
USI Funding, Inc.
USI Properties, Inc.
USI Realty Corp.
Xxxx (Cayman Islands), Inc.
Xxxx Constructors, Inc.
(f/k/a Advanco Constructors, Inc.)
Xxxx XXX Services, Inc. (f/k/a National
Energy Production Corporation)
Zurnacq of California, Inc.
By: /s/ Xxxxxx X. Xxxxx
-------------------------------------
Name:
-----------------------------------
Title: Sr. Vice President, General
Counsel & Secretary
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SCHEDULE I
AMENDMENTS TO SCHEDULE I OF PLEDGE AGREEMENT
1. The following rows are deleted from Part A of Schedule I to the Pledge
Agreement:
Number of Certificate
Pledgor Issuer Nature of Shares Shares Number(s)
------- ------ ---------------- ------ -----------
Jacuzzi Brands, Inc. USI Global Corp. Common 100 1
USI Atlantic Corp. USI American Holdings, Inc. Common 200 1, 2
2. The following rows are inserted in Part A of Schedule I to the Pledge
Agreement:
Number of Certificate
Pledgor Issuer Nature of Shares Shares Number(s)
------- ------ ---------------- ------ -----------
USI American Holdings, Inc. USI Global Corp. Common 100 2
JBI Holdings Limited USI American Holdings, Inc. Common 200 3
JBI Holdings Limited USI American Holdings, Inc. Common 100 4
3. The following row is inserted in Part B of Schedule I to the Pledge
Agreement:
Number of Certificate
Pledgor Issuer Nature of Shares Shares Number(s)
------- ------ ---------------- ------ -----------
Jacuzzi Brands, Inc. JBI Holdings Limited Ordinary 100 1
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