Waiver No. 3 to Credit Agreement among The Scotts Company, Subsidiary Borrowers, and Lenders (October 19, 2001)

Summary

This agreement is a waiver to the existing Credit Agreement between The Scotts Company, its subsidiaries, and several banks and financial institutions. The lenders agree to temporarily waive certain financial requirements for the quarter ending September 30, 2001, provided The Scotts Company meets specific minimum financial thresholds. The waiver is effective until December 31, 2001, and does not extend to other periods or provisions. The agreement also sets a higher leverage ratio for determining certain fees during this period and requires The Scotts Company to pay related administrative costs.

EX-4.J 3 l90295aex4-j.txt EXHIBIT 4(J) EXHIBIT 4(j) Waiver No. 3, dated as of October 19, 2001, to the Credit Agreement, dated as of December 4, 1998 WAIVER NO. 3 WAIVER NO. 3, dated as of October 19, 2001 (this "THIRD WAIVER"), to the Credit Agreement, dated as of December 4, 1998 (as amended by the Waiver, dated as of January 19, 1999, the Amendment No. 1 and Consent, dated as of October 13, 1999, Waiver No. 2, dated as of February 14, 2000, Amendment No. 2, dated as of June 9, 2000, and the Amended and Restated Credit Agreement, dated as of December 5, 2000, and as otherwise amended, supplemented or modified from time to time, the "CREDIT AGREEMENT"), among THE SCOTTS COMPANY, an Ohio corporation (the "BORROWER"), certain subsidiaries of the Borrower who are also borrowers from time to time under the Credit Agreement (the "SUBSIDIARY BORROWERS"), the several banks and other financial institutions from time to time parties to the Credit Agreement (the "LENDERS"), THE CHASE MANHATTAN BANK, as agent for the Lenders (in such capacity, the "ADMINISTRATIVE AGENT"), SALOMON SMITH BARNEY, INC., as syndication agent (the "SYNDICATION AGENT"), CREDIT LYONNAIS NEW YORK BRANCH and BANK ONE, MICHIGAN, as successor to NBD BANK, as co-documentation agents (the "CO-DOCUMENTATION AGENTS"), and J.P. MORGAN SECURITIES INC., as successor to CHASE SECURITIES INC., as lead arranger (the "LEAD ARRANGER") and book manager (the "BOOK MANAGER"). W I T N E S S E T H : - - - - - - - - - - WHEREAS, subsections 6.9, 6.10 and 6.11 of the Credit Agreement set forth certain financial covenants to be observed by the Borrower; WHEREAS, the Borrower has advised the Administrative Agent that it will not satisfy the requirements set forth in subsections 6.9, 6.10 and 6.11 of the Credit Agreement with respect to the fiscal quarter ending September 30, 2001; WHEREAS, the Borrower has requested that the Required Lenders waive, for the period to and including December 31, 2001 but not thereafter, the requirements set forth in subsections 6.9, 6.10 and 6.11 of the Credit Agreement with respect to the fiscal quarter ending September 30, 2001; and WHEREAS, the Required Lenders have agreed to waive such requirements with respect to such period but only on the terms and subject to the conditions set forth herein; NOW, THEREFORE, in consideration of the premises and of the mutual agreements contained herein, the parties hereto agree as follows: 1. DEFINED TERMS. Unless otherwise defined herein, capitalized terms have the meanings given to them in the Credit Agreement. 2. COMPLIANCE WITH SUBSECTION 6.9 (INTEREST COVERAGE). The Required Lenders hereby waive, for the period to and including December 31, 2001 but not thereafter, the requirements of subsection 6.9 of the Credit Agreement with respect to the fiscal quarter ending 2 September 30, 2001; PROVIDED that the Borrower's Minimum Interest Coverage as of the last day of such fiscal quarter was not less than 2.20 to 1. 3. COMPLIANCE WITH SUBSECTION 6.10 (MAINTENANCE OF LEVERAGE RATIO). The Required Lenders hereby waive, for the period to and including December 31, 2001 but not thereafter, the requirements of subsection 6.10 of the Credit Agreement with respect to the fiscal quarter ending September 30, 2001; PROVIDED that the Borrower's Leverage Ratio as of the last day of such fiscal quarter was not greater than 4.90 to 1. 4. COMPLIANCE WITH SUBSECTION 6.11 (MAINTENANCE OF CONSOLIDATED NET WORTH). The Required Lenders hereby waive, for the period to and including December 31, 2001 but not thereafter, the requirements of subsection 6.11 of the Credit Agreement with respect to the fiscal quarter ending September 30, 2001; PROVIDED that the Borrower's Consolidated Net Worth as of the last day of such fiscal quarter was not less than $490,000,000. 5. APPLICABLE MARGIN AND FACILITY FEE RATE. The Leverage Ratio shall be deemed to be greater than 4.0 to 1.0 for purposes of determining the Applicable Margin and the Facility Fee Rate pursuant to the Pricing Grid, effective from the date this Third Waiver becomes effective to and including December 31, 2001. 6. REPRESENTATIONS AND WARRANTIES. On and as of the date hereof, and after giving effect to this Third Waiver, the Borrower hereby confirms, reaffirms and restates the representations and warranties set forth in Section 4 of the Credit Agreement MUTATIS MUTANDIS, except to the extent that such representations and warranties expressly relate to a specific earlier date, in which case the Borrower hereby confirms, reaffirms and restates such representations and warranties as of such earlier date. 7. CONDITIONS TO EFFECTIVENESS. This Third Waiver shall become effective as of the date the Administrative Agent receives (i) counterparts of this Third Waiver, duly executed and delivered by the Borrower, the Administrative Agent and the Required Lenders and (ii) a waiver fee for the account of each Lender that executes and delivers a counterpart of this Third Waiver on or prior to October 29, 2001 in an amount equal to 0.05% of the Aggregate Exposure of such Lender. 8. CONTINUING EFFECT; NO OTHER WAIVER. Except as expressly waived hereby, all of the terms and provisions of the Credit Agreement are and shall remain in full force and effect. The waivers provided for herein are limited to the specific subsections of the Credit Agreement specified herein and for the time period specified herein and shall not constitute a waiver of, or an indication of any Lender's willingness to waive, any other provisions of the Credit Agreement or the same subsections for any other date or time period. 9. EXPENSES. The Borrower agrees to pay and reimburse the Administrative Agent for all of its reasonable costs and expenses incurred in connection with the preparation and delivery of this Third Waiver, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent. 3 10. GOVERNING LAW. THIS THIRD WAIVER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 11. COUNTERPARTS. This Third Waiver may be executed by the parties hereto in any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have caused this Third Waiver to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written. THE SCOTTS COMPANY By: /s/ Rebecca J. Bruening ------------------------------------------ Name: Rebecca J. Bruening Title: Vice President, Corporate Treasurer THE CHASE MANHATTAN BANK, as Administrative Agent and as a Lender By: /s/ Randolph E. Cates ------------------------------------------ Name: Randolph E. Cates Title: Vice President CREDIT LYONNAIS NEW YORK BRANCH, as Co-Documentation Agent and as a Lender By: /s/ Joseph A. Philbin ------------------------------------------ Name: Joseph A. Philbin Title: V.P. BANK ONE, MICHIGAN, as successor to NBD BANK, as Co-Documentation Agent and as a Lender By: /s/ Paul Harris ------------------------------------------ Name: Paul Harris Title: FVP ABN AMRO BANK N.V. By: /s/ Thomas Comfort ----------------------------------------- Name: Thomas Comfort Title: Senior Vice President By: /s/ Wendy E. Pace ----------------------------------------- Name: Wendy E. Pace Title: Assistant Vice President BANK OF MONTREAL By: /s/ Robert H. Welchen ----------------------------------------- Name: Robert H. Welchen Title: Vice President ADDISON CDO, LIMITED By: ----------------------------------------- Name: Title: AERIES-II FINANCE LTD. By: Name: ----------------------------------------- Title: AIMCO CDO SERIES 2000-A By: /s/ Charles D. Mires ------------------------------------------ Name: Charles D. Mires Title: Authorized Signatory By: /s/ Robert B. Bodett ------------------------------------------ Name: Robert B. Bodett Title: Authorized Signatory ALLSTATE LIFE INSURANCE CO. By: /s/ Charles D. Mires ------------------------------------------ Name: Charles D. Mires Title: Authorized Signatory By: /s/ Robert B. Bodett ------------------------------------------ Name: Robert B. Bodett Title: Authorized Signatory AMMC CDO I, LIMITED By: ------------------------------------------ Name: Title: APEX (IPM) CDO I, LTD. By: /s/ Roshan White ------------------------------------------ Name: Roshan White Title: Vice President ARCHIMEDES FUNDING IV, LTD. By: ING Capital Advisors LLC, as Collateral Manager By: /s/ Mark M. O'Shaughnessy ------------------------------------------ Name: Mark M. O'Shaughnessy Title: Vice President ARES III CLO LTD. By: ------------------------------------------ Name: Title: ARES IV CLO LTD. By: ------------------------------------------ Name: Title: ARES LEVERAGED INVESTMENT FUND II, L.P. By: ------------------------------------------ Name: Title: AVALON CAPITAL LTD. By: INVESCO Senior Secured Management, Inc. as Portfolio Advisor By: /s/ Thomas H.B. Ewald ------------------------------------------ Name: Thomas H. B. Ewald Title: Authorized Signatory AVALON CAPITAL LTD. II By: INVESCO Senior Secured Management, Inc. as Portfolio Advisor By: /s/ Thomas H.B. Ewald ------------------------------------------ Name: Thomas H. B. Ewald Title: Authorized Signatory PB CAPITAL CORPORATION By: /s/ Nina Zhou ------------------------------------------ Name: Nina Zhou Title: Associate By: /s/ Jeffrey Frost ------------------------------------------ Name: Jeffrey Frost Title: Managing Director Client Services BANK AUSTRIA CREDITANSTALT CORPORATE FINANCE, INC. By: /s/ Francesco Ossino ------------------------------------------ Name: Francesco Ossino Title: Vice President By: /s/ David M. Harnisch ------------------------------------------ Name: David M. Harnisch Title: Managing Director BANK OF AMERICA, N.A. By: /s/ Gretchen Spoo ------------------------------------------ Name: Gretchen Spoo Title: Principal BANK OF HAWAII By: /s/ J. Bryan Scearce ------------------------------------------ Name: J. Bryan Scearce Title: Vice President THE BANK OF NEW YORK By: /s/ Randolph E. J. Medrano ------------------------------------------ Name: Randolph E. J. Medrano Title: Vice President THE BANK OF NOVA SCOTIA By: /s/ A.S. Norsworthy ------------------------------------------ Name: A.S. Norsworthy Title: Sr. Team Leader-Loan Operations BANK OF TOKYO-MITSUBISHI TRUST COMPANY By: ----------------------------------------- Name: Title: By: ----------------------------------------- Name: Title: BALANCED HIGH YIELD FUND II, LTD. By: /s/ Mark M. O'Shaughnessy ----------------------------------------- Name: Mark M. O'Shaughnessy Title: Vice President BAVARIA TRR CORPORATION By: /s/ Lori Rezza ----------------------------------------- Name: Lori Rezza Title: Vice President BNP PARIBAS By: /s/ Kristin Petinaux ----------------------------------------- Name: Kristin Petinaux Title: By: /s/ Richard L. Sted ----------------------------------------- Name: Richard L. Sted Title: Central Region Manager BW CAPITAL MARKETS, INC. By: /s/ Thomas A. Lowe ----------------------------------------- Name: Thomas A. Lowe Title: Vice President By: /s/ Philip G. Waldrop ----------------------------------------- Name: Philip G. Waldrop Title: Vice President CAPTIVA IV FINANCE LTD. By: ----------------------------------------- Name: Title: CENTURION CDO II, LTD. By: /s/ Michael M. Leyland ----------------------------------------- Name: Michael M. Leyland Title: Managing Director CERES II FINANCE, LTD. By: INVESCO Senior Secured Management, Inc. as Sub-Managing Agent (Financial) By: /s/ Thomas H. B. Ewald ----------------------------------------- Name: Thomas H. B. Ewald Title: Authorized Signatory CHARTER VIEW PORTFOLIO By: INVESCO Senior Secured Management, Inc. as Investment Advisor By: /s/ Thomas H. B. Ewald ----------------------------------------- Name: Thomas H. B. Ewald Title: Authorized Signatory CITICORP USA, INC. By: /s/ Allen Fisher ----------------------------------------- Name: Allen Fisher Title: Vice President COLUMBUS LOAN FUNDING, LTD. By: Travelers Asset Management International Company, LLC By: /s/ Allen Cantrell ----------------------------------------- Name: Allen Cantrell Title: Investment Officer COMERICA BANK, Detroit By: /s/ Anthony L. Davis ----------------------------------------- Name: Anthony L. Davis Title: Asst. Vice President CREDIT AGRICOLE INDOSUEZ, Chicago By: /s/ Theodore D. Tice ----------------------------------------- Name: Theodore D. Tice Title: Vice President Senior Relationship Manager By: /s/ Bradley C. Peterson ----------------------------------------- Name: Bradley C. Peterson Title: First Vice President CREDIT SUISSE FIRST BOSTON By: ----------------------------------------- Name: Title: CYPRESSTREE FOCUSED INVESTMENT FUND, LLC By: CypressTree Investment Management Company, Inc., its Managing Member By: ----------------------------------------- Name: Title: CYPRESSTREE INVESTMENT PARTNERS I, LTD By: CypressTree Investment Management Company, Inc., as Portfolio Manager By: /s/ Jonathan D. Sharkey ----------------------------------------- Name: Jonathan D. Sharkey Title: Principal CYPRESSTREE INVESTMENT PARTNERS II, LTD By: CypressTree Investment Management Company, Inc., as Portfolio Manager By: /s/ Jonathan D. Sharkey ----------------------------------------- Name: Jonathan D. Sharkey Title: Principal CYPRESSTREE INVESTMENT MANAGEMENT COMPANY, INC. As: Attorney-in-Fact and on behalf of First Allmerica Financial Life Insurance Company as Portfolio Manager By: /s/ Jonathan D. Sharkey ----------------------------------------- Name: Jonathan D. Sharkey Title: Principal DELANO COMPANY By: Pacific Investment Management Company, as its Investment Advisor By: PIMCO Management Inc., a General Partner By: ----------------------------------------- Name: Title: DRESDNER BANK AG By: /s/ Joanna M. Solowski ----------------------------------------- Name: Joanna M. Solowski Title: Vice President By: /s/ John A. Ramelli ----------------------------------------- Name: John A. Ramelli Title: Vice President EATON VANCE CDO II, LTD. By: Eaton Vance Management as Investment Advisor By: /s/ Payson F. Swaffield ----------------------------------------- Name: Payson F. Swaffield Title: Vice President EATON VANCE CDO III, LTD. By: Eaton Vance Management as Investment Advisor By: /s/ Payson F. Swaffield ----------------------------------------- Name: Payson F. Swaffield Title: Vice President EATON VANCE INSTITUTIONAL SENIOR LOAN FUND By: Eaton Vance Management as Investment Advisor By: /s/ Payson F. Swaffield ----------------------------------------- Name: Payson F. Swaffield Title: Vice President EATON VANCE SENIOR INCOME TRUST By: Eaton Vance Management as Investment Advisor By: /s/ Payson F. Swaffield ----------------------------------------- Name: Payson F. Swaffield Title: Vice President ELC (CAYMAN) LTD. 1999-III By: /s/ Roshan White ----------------------------------------- Name: Roshan White Title: Vice President ELC (CAYMAN) LTD. 2000-I By: /s/ Roshan White ----------------------------------------- Name: Roshan White Title: Vice President ERSTE BANK NEW YORK By: /s/ Paul Judicke ----------------------------------------- Name: Paul Judicke Title: Vice President Erste Bank New York Branch By: /s/ John S.Runnion ----------------------------------------- Name: John S. Runnion Title: Managing Director Erste Bank New York Branch FIDELITY II: ADVANCED FLOATING RATE HIGH INCOME FUND By: /s/ John H. Costillo Name: John H. Costillo Title: Assistant Treasurer FIFTH THIRD BANK OF COLUMBUS By: /s/ John K. Beanslee ----------------------------------------- Name: John K. Beanslee Title: Vice President FIRST ALLMERICA FINANCIAL LIFE INSURANCE COMPANY By: ----------------------------------------- Name: Title: FIRST UNION NATIONAL BANK By: /s/ David J. C. Silander ----------------------------------------- Name: David J. C. Silander Title: Vice President FIRSTAR BANK, N.A. By: /s/ R. H. Friend ----------------------------------------- Name: R. H. Friend Title: Vice President FLAGSHIP CAPITAL By: ----------------------------------------- Name: Title: FLEET NATIONAL BANK By: /s/ Mario F. Teixeira ----------------------------------------- Name: Mario F. Teixeira Title: Vice President FORTIS PROJECT FINANCE LIMITED By: /s/ Euan Lynes ----------------------------------------- Name: Euan Lynes Title: Director By: /s/ Peter Hanratty ----------------------------------------- Name: Peter Hnaratty Title: Authorized Signatory FRANKLIN CLO I, LIMITED By: ----------------------------------------- Name: Title: FRANKLIN FLOATING RATE MASTER SERIES By: /s/ Chauncey Lufkin ----------------------------------------- Name: Chauncey Lufkin Title: Vice President FREMONT INVESTMENT & LOAN By: /s/ Kannika Viravan ----------------------------------------- Name: Kannika Viravan Title: Vice President THE FUJI BANK, LIMITED By: /s/ Nobuoki Koike ----------------------------------------- Name: Nobuoki Koike Title: Senior Vice President GENERAL ELECTRIC CAPITAL CORPORATION By: /s/ Robert M. Kadlick ----------------------------------------- Name: Robert M. Kadlick Title: Duly Authorized Signatory GRAYSON & CO. By: Boston Management and Research as Investment Advisor By: /s/ Payson F. Swaffield ----------------------------------------- Name: Payson F. Swaffield Title: Vice President GREAT POINT CLO 1999-1 LTD. By: Sankaty Advisors, LLC as Collateral Manager By: /s/ Diane J. Exter ----------------------------------------- Name: Diane J. Exter Title: Managing Director Portfolio Manager HARRIS TRUST AND SAVINGS BANK By: /s/ Christopher Fisher ----------------------------------------- Name: Christopher Fisher Title: Vice President HELLER FINANCIAL INC. By: ----------------------------------------- Name: Title: THE HUNTINGTON NATIONAL BANK By: /s/ Mark A. Koscielski ----------------------------------------- Name: Mark A. Koscielski Title: Vice President IKB DEUTSCHE INDUSTRIEBANK FG LUXEMBOURG BRANCH By: /s/ Manfred Ziwey ----------------------------------------- Name: Manfred Ziwey Title: Director IKB DEUTSCHE INDUSTRIEBANK AG LONDON BRANCH By: /s/ Manfred Ziwey ----------------------------------------- Name: Manfred Ziwey Title: Director INDOSUEZ CAPITAL FUNDING VI, LTD. By: Indosuez Capital Luxembourg as Portfolio Advisor By: /s/ Jack Henry ----------------------------------------- Name: Jack Henry Title: Vice President & Portfolio Manager JISSEKIKUN FUNDING, LTD. By: ----------------------------------------- Name: Title: KZH CNC LLC By: /s/ Anthony Iarubino ----------------------------------------- Name: Anthony Iarubino Title: VP KZH CRESCENT 3 LLC By: ----------------------------------------- Name: Title: KZH CYPRESSTREE-1 LLC By: /s/ Anthony Iarubino ----------------------------------------- Name: Anthony Iarubino Title: VP KZH HIGHLAND-2 LLC By: ----------------------------------------- Name: Title: KZH LANGDALE LLC By: /s/ Anthony Iarubino ----------------------------------------- Name: Anthony Iarubino Title: VP KZH RIVERSIDE LLC By: /s/ Anthony Iarubino ----------------------------------------- Name: Anthony Iarubino Title: VP KZH SOLEIL-2 LLC By: ----------------------------------------- Name: Title: KZH STERLING LLC By: /s/ Anthony Iarubino ----------------------------------------- Name: Anthony Iarubino Title: VP KZH WATERSIDE LLC By: /s/ Anthony Iarubino ----------------------------------------- Name: Anthony Iarubino Title: VP KEY BANK NATIONAL ASSOCIATION By: ----------------------------------------- Name: Title: LANDESBANK RHEINLAND-PFALTZ GIROZENTRALE By: /s/ Stefan Gilsdorf ----------------------------------------- Name: Stefan Gilsdorf Title: SVP By: /s/ Anne-Marie Theobald ----------------------------------------- Name: Anne-Marie Theobald Title: Manager LIBERTY-STEIN ROE ADVANCED FLOATING RATE ADVANTAGE FUND By: Stein Roe & Farnham Incorporated, as Advisor By: /s/ James R. Fellows ----------------------------------------- Name: James R. Fellows Title: Sr. Vice President & Portfolio Manager ML CLO XII PILGRIM AMERICA (CAYMAN) By: ING Pilgrim Investments, as its Investment Manager By: /s/ Brian Horton ----------------------------------------- Name: Brian Horton Title: Vice President ML CLO XX PILGRIM AMERICA (CAYMAN) By: ING Pilgrim Investments, as its Investment Manager By: /s/ Brian Horton ----------------------------------------- Name: Brian Horton Title: Vice President MADISON AVENUE CDO I LTD. By: Metropolitan Life Insurance Company as Collateral Manager By: /s/ James R. Dingler ----------------------------------------- Name: James R. Dingler Title: Director MAPLEWOOD (CAYMAN) LIMITED By: David L. Babson & Company Inc. under delegated authority from Massachusetts Mutual Life Insurance Company as Investment Manager By: /s/ Mary S. Law ----------------------------------------- Name: Mary S. Law Title: Managing Director MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY By: David L. Babson & Company Inc. as Investment Adviser By: /s/ Mary S. Law ----------------------------------------- Name: Mary S. Law Title: Managing Director METROPOLITAN LIFE INSURANCE COMPANY By: /s/ James R. Dingler ----------------------------------------- Name: James R. Dingler Title: Director MORGAN STANLEY DEAN WITTER PRIME INCOME TRUST By: ----------------------------------------- Name: Title: MOUNTAIN CAPITAL CLO I, LTD. By: ----------------------------------------- Name: Title: NBD BANK By: ----------------------------------------- Name: Title: NATEXIS BANQUE POPULAIRES By: /s/ Frank H. Madden Jr. ----------------------------------------- Name: Frank H. Madden Jr. Title: Vice President & Group Manager By: /s/ Christian Giordano ----------------------------------------- Name: Christian Giordano Title: Vice President NATIONAL CITY BANK By: /s/ Anthony F. Salvatore ----------------------------------------- Name: Anthony F. Salvatore Title: Senior Vice President NEMEAN CLO. LTD. By: ING Capital Advisors LLC, as Investment Manager By: /s/ Mark M. O'Shaughnessy ----------------------------------------- Name: Mark M. O'Shaughnessy Title: Vice President NORTH AMERICAN SENIOR FLOATING RATE FUND By: ----------------------------------------- Name: Title: NUVEEN SENIOR INCOME FUND By: Nuveen Senior Loan Asset Management Inc. By: ----------------------------------------- Name: Title: OASIS COLLATERALIZED HIGH INCOME PORTFOLIO-1 LTD. By: INVESCO Senior Secured Management, Inc. As Subadvisor By: /s/ Thomas H. B. Ewald ----------------------------------------- Name: Thomas H. B. Ewald Title: Authorized Signatory OCTAGON INVESTMENT PARTNERS III, LTD. By: Octagon Credit Investors, LLC as Portfolio Manager By: /s/ Andrew D. Gordon ----------------------------------------- Name: Andrew D. Gordon Title: Portfolio Manager OCTAGON INVESTMENT PARTNERS IV, LTD. By: Octagon Credit Investors, LLC as Collateral Manager By: /s/ Andrew D. Gordon ----------------------------------------- Name: Andrew D. Gordon Title: Portfolio Manager OLYMPIC FUNDING TRUST, SERIES 1999-1 By: /s/ Ann E. Morris ----------------------------------------- Name: Ann E. Morris Title: Authorized Agent OSPREY INVESTMENTS PORTFOLIO By: ----------------------------------------- Name: Title: OXFORD STRATEGIC INCOME FUND By: Eaton Vance Management as Investment Advisor By: /s/ Payson F. Swaffield ----------------------------------------- Name: Payson F. Swaffield Title: Vice President PILGRIM SENIOR INCOME FUND By: ING Pilgrim Investments, as its Investment Manager By: /s/ Brian Horton ----------------------------------------- Name: Brian Horton Title: Vice President PINEHURST TRADING, INC. By: /s/ Ann E. Morris ----------------------------------------- Name: Ann E. Morris Title: Asst. Vice President PPM SPYGLASS FUNDING TRUST By: /s/ Ann E. Morris ----------------------------------------- Name: Ann E. Morris Title: Authorized Agent THE PRUDENTIAL INSURANCE COMPANY OF AMERICA By: /s/ B. Ross Smead ----------------------------------------- Name: B. Ross Smead Title: Senior Vice President RABOBANK INTERNATIONAL, NEW YORK BRANCH By: /s/ Thomas A. Levinsen ----------------------------------------- Name: Thomas A. Levinsen Title: Executive Director By: /s/ Ian Reece ----------------------------------------- Name: Ian Reece Title: Managing Director RIVIERA FUNDING LLC By: /s/ Ann E. Morris ----------------------------------------- Name: Ann E. Morris Title: Asst. Vice President SANKATY HIGH YIELD ASSET PARTNERS, L.P. By: /s/ Diane J. Exter ----------------------------------------- Name: Diane J. Exter Title: Managing Director Portfolio Manager SANKATY HIGH YIELD PARTNERS II, L.P. By: /s/ Diane J. Exter ----------------------------------------- Name: Diane J. Exter Title: Managing Director Portfolio Manager SCUDDER FLOATING RATE FUND By: /s/ Kenneth Weber ----------------------------------------- Name: Kenneth Weber Title: Senior Vice President SEABOARD CLO 2000, LTD. By: /s/ Sheppard H. C. Davis, Jr. ----------------------------------------- Name: Sheppard H. C. Davis, Jr. Title: CEO of Seaboard & Co. its Collateral Manager SENIOR DEBT PORTFOLIO By: Boston Management and Research, as Investment Advisor By: /s/ Payson F. Swaffield ----------------------------------------- Name: Payson F. Swaffield Title: Vice President SEQUILS IV, LTD. By: ----------------------------------------- Name: Title: SEQUILS-CENTURION V, LTD. By: /s/ Michael M. Leyland ----------------------------------------- Name: Michael M. Leyland Title: Managing Director SEQUILS-CUMBERLAND I, LTD. By: /s/ Dale Burrow ----------------------------------------- Name: Dale Burrow Title: Senior Vice President SIERRA CLO I LTD. By: /s/ John M. Casparian ----------------------------------------- Name: John M. Casparian Title: Chief Operating Officer, Centre Pacific LLP (Manager) SPS HIGH YIELD LOAN TRADING By: ----------------------------------------- Name: Title: SRF 2000 LLC By: ----------------------------------------- Name: Title: STEIN ROE FLOATING RATE LLC By: ----------------------------------------- Name: Title: SUFFIELD CLO, LIMITED By: David L. Babson & Company Inc. as Collateral Manager By: /s/ Mary S. Law ----------------------------------------- Name: Mary S. Law Title: Managing Director SUNTRUST BANK By: /s/ Frank A. Coe ----------------------------------------- Name: Frank A. Coe Title: Vice President SWAPS CSLT By: ----------------------------------------- Name: Title: THOROUGHBRED LIMITED PARTNERSHIP I By: ----------------------------------------- Name: Title: TORONTO DOMINION (NEW YORK), INC. By: ----------------------------------------- Name: Title: THE TRAVELERS INSURANCE COMPANY By: /s/ Allen Cantrell ----------------------------------------- Name: Allen Cantrell Title: Investment Officer TRYON CLO LTD. 2000-1 By: /s/ Roshan White ----------------------------------------- Name: Roshan White Title: Vice President TYLER TRADING, INC. By: /s/ Don C. Day ----------------------------------------- Name: Don C. Day Title: Vice President UBS AG By: ----------------------------------------- Name: Title VAN KAMPEN CLO II, LIMITED By: ----------------------------------------- Name: Title: VAN KAMPEN PRIME RATE INCOME TRUST By: ----------------------------------------- Name: Title: VAN KAMPEN SENIOR FLOATING RATE FUND By: ----------------------------------------- Name: Title: VAN KAMPEN SENIOR INCOME TRUST By: ----------------------------------------- Name: Title: VARIABLE INSURANCE PRODUCTS FUND II: ASSET MANAGEMENT GROWTH PORTFOLIO By: ----------------------------------------- Name: Title: WINDSOR LOAN FUNDING, LIMITED By: ----------------------------------------- Name: Title: WINGED FOOT FUNDING TRUST By: /s/ Ann E. Morris ----------------------------------------- Name: Ann E. Morris Title: Authorized Agent ACKNOWLEDGEMENT AND CONSENT In consideration of each Agent's and the Lenders' execution, delivery and performance of the foregoing Waiver No. 3 (the "THIRD WAIVER"), each of the undersigned hereby (i) acknowledges the terms and provisions of the Third Waiver and consents thereto and (ii) confirms and agrees that (a) the Borrower and Domestic Subsidiary Guarantee and Collateral Agreement (the "GUARANTEE AND COLLATERAL AGREEMENT") is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects and shall apply to the Credit Agreement and (b) the guarantees and all of the Collateral (as defined in the Guarantee and Collateral Agreement) do, and shall continue to, secure the payment of all of the Obligations (as defined in the Guarantee and Collateral Agreement) pursuant to the terms of the Guarantee and Collateral Agreement. Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement referred to in the Third Waiver to which this Acknowledgment and Consent is attached. THE SCOTTS COMPANY HYPONEX CORPORATION SCOTTS MANUFACTURING COMPANY SCOTTS-SIERRA HORTICULTURAL PRODUCTS COMPANY SCOTTS-SIERRA INVESTMENTS, INC. SCOTTS PROFESSIONAL PRODUCTS CO. SCOTTS PRODUCTS CO. OMS INVESTMENTS, INC. MIRACLE-GRO LAWN PRODUCTS, INC. MIRACLE-GRO PRODUCTS LTD. SCOTTS-SIERRA CROP PROTECTION COMPANY EARTHGRO, INC. SANFORD SCIENTIFIC, INC. EG SYSTEMS, INC. SWISS FARMS PRODUCTS, INC. SCOTTS TEMECULA OPERATIONS, LLC By: /s/ Rebecca J. Bruening ---------------------------------------------------- Name: Rebecca J. Bruening Title: Vice President, Corporate Treasurer