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CONFORMED COPY
WAIVER NO. 2
WAIVER NO. 2, dated as of February 14, 2000 (the "Second
Waiver"), to the Credit Agreement, dated as of December 4, 1998, as amended by
the Waiver, dated as of January 19, 1999, and the Amendment No. 1 and Consent,
dated as of October 13, 1999, and as amended, supplemented or modified from time
to time (the "Credit Agreement") among THE SCOTTS COMPANY, an Ohio corporation
(the "Borrower" or "Scotts"), OM Scott International Investments Ltd., Miracle
Garden Care Limited, Scotts Holdings Limited, Hyponex Corporation, Scotts'
Miracle-Gro Products, Inc., Scotts-Sierra Horticultural Products Company,
Republic Tool & Manufacturing Corp., Scotts-Sierra Investments, Inc., Scotts
France Holdings SARL, Scotts Holding GmbH, Scotts Celaflor GmbH & Co. KG, Scotts
France SARL, Scotts Asef BVBA, f/k/a Scotts Belgium 2 BVBA, The Scotts Company
(UK) Ltd., Scotts Canada Ltd., Scotts Europe B.V., ASEF B.V., Scotts Australia
PTY Ltd., and the other 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, a New York banking
corporation (together with its banking affiliates, "Chase"), as agent for the
Lenders (in such capacity, the "Administrative Agent"), SALOMON SMITH BARNEY,
INC., as syndication agent (the "Syndication Agent"), CREDIT LYONNAIS CHICAGO
BRANCH (together with its banking affiliates, "Credit Lyonnais") and BANK ONE,
MICHIGAN, as successor to NBD BANK, as co-documentation agents (the
"Co-Documentation Agents"), and Chase Securities Inc., as lead arranger (the
"Lead Arranger") and as the book manager (the "Book Manager").
W I T N E S S E T H :
- - - - - - - - - -
WHEREAS, subsection 6.11 of the Credit Agreement, Maintenance
of Consolidated Net Worth, sets forth a formula which required that Borrower's
Consolidated Net Worth (as defined in the Credit Agreement) be in an amount of
not less than $385,500,000 as of the last day of Borrower's fiscal quarter
ending January 1, 2000. Borrower reports that its Consolidated Net Worth as of
the last day of such fiscal quarter was $383,100,000;
WHEREAS, the Borrower has requested that the Required Lenders
waive, with respect to the fiscal quarter ending January 1, 2000, the
requirement under subsection 6.11 of the Credit Agreement that the Borrower
maintain its Consolidated Net Worth above the amount described herein; and
WHEREAS, the Required Lenders have agreed to waive such
requirement 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 herein contained, the parties hereto agree as follows:
1. Defined Terms. Unless otherwise noted, capitalized terms
have the meanings given to them in the Credit Agreement.
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2. Compliance with Subsection 6.11 (Maintenance of
Consolidated Net Worth). The Required Lenders hereby waive the requirements of
subsection 6.11 of the Credit Agreement with respect to the fiscal quarter
ending January 1, 2000; provided that the Borrower's Consolidated Net Worth as
of the last day of such fiscal quarter was not less than $383,000,000.
3. Representations and Warranties. On and as of the date
hereof, and after giving effect to this Second Waiver, the Borrower hereby
confirms, reaffirms and restates the representations and warranties set forth in
Section 4 of the Credit Agreement mutatis mutandis, and 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.
4. Conditions to Effectiveness. This Second Waiver shall
become effective as of the date the Administrative Agent receives counterparts
of this Second Waiver, duly executed and delivered by the Borrower, the
Administrative Agent and the Required Lenders.
5. 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 waiver provided for herein is limited
to the specific subsections of the Credit Agreement specified herein and shall
not constitute an 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 (whether or not such other provisions or
compliance with such subsections for another date or time period are affected by
the circumstances addressed in this Second Waiver).
6. Expenses. The Borrower agrees to pay and reimburse the
Administrative Agent for all its reasonable costs and expenses incurred in
connection with the preparation and delivery of this Second Waiver, including,
without limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent.
7. GOVERNING LAW. THIS SECOND WAIVER SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
8. Counterparts. This Second 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.
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IN WITNESS WHEREOF, the parties hereto have caused this Second
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
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Title: Vice President, Corporate Treasurer
SALOMON SMITH BARNEY, INC., as Syndication
Agent and as a Lender
By: /s/ B. Crook
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Title: Managing Director
CREDIT LYONNAIS CHICAGO BRANCH, as Co-Documentation Agent
and as a Lender
By: /s/ Mary Ann Klemm
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Title: Vice President
BANK ONE, MICHIGAN, as successor to
NBD BANK, as Co-Documentation Agent and as a Lender
By: /s/ Thomas E. Redmond
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Title: Managing Director
THE CHASE MANHATTAN BANK, as Administrative
Agent and as a Lender
By: /s/ Randolph Cates
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Title: Vice President
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ABN AMRO BANK N.V., Pittsburgh
By: /s/ Patrick Pastore /s/ Gregory Amoroso
----------------------------------------------------
Title: Vice President Senior Vice President
AERIES - II FINANCE LTD.
By: /s/ Greg Stoeckle
----------------------------------------------------
Title: Authorized Signatory
ALLIANCE INVESTMENT OPPORTUNITIES
By:
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Name:
Title:
ALLSTATE LIFE INSURANCE CO.
By:
----------------------------------------------------
Name:
Title:
ARES LEVERAGED INVESTMENT FUND II, L.P.
By: /s/ Seth Brufsky
----------------------------------------------------
Title: Vice President
ATHENA CDO, LIMITED
By: Pacific Investment Management Company as
its investment advisor
By: PIMCO Management Inc., a general partner
By:
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Name:
Title:
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BHF (USA) CAPITAL CORPORATION
By:
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Name:
Title:
BHF BANK AKTIENGESELLSCHAFT
By:
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Name:
Title:
BW CAPITAL MARKETS, INC.
By: /s/ Philip Waldrop Richard P. Urfer
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Title: Vice President President
BALANCED HIGH YIELD FUND II LTD.
By:
----------------------------------------------------
Name:
Title:
BANK AUSTRIA
By:
----------------------------------------------------
Name:
Title:
BANK OF AMERICA
By: /s/ Gretchen Spoo
----------------------------------------------------
Title: Vice President
BANK OF HAWAII
By:
----------------------------------------------------
Name:
Title:
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BANK OF MONTREAL
By: /s/ Brian L. Banks
----------------------------------------------------
Title: Director
THE BANK OF NEW YORK
By: /s/ Thomas McCrohan
----------------------------------------------------
Title: Vice President
THE BANK OF NOVA SCOTIA
By: /s/ F.C.H. Ashby
----------------------------------------------------
Title: Senior Manager Loan Operations
BANK OF TOKYO-MITSUBISHI TRUST COMPANY
By:
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Name:
Title:
BANQUE NATIONALE DE PARIS
By: /s/ Arnaud Collin de Bocage
----------------------------------------------------
Title: Executive Vice President & General
Manager
BANQUE WORMS CAPITAL CORPORATION
By: /s/ Michael M. Flemming F. Gamet
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Title: Vice President & General Counsel
Senior Vice President
BLACK DIAMOND CLO 1998-1 LTD.
By:
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Name:
Title:
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BOEING CAPITAL CORPORATION
By: /s/ James C. Hammersmith
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Title: Senior Documentation Officer
CIT GROUP/EQUIPMENT FINANCING, INC.
By:
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Name:
Title:
CAPTIVA III FINANCE LTD.
By:
----------------------------------------------------
Name:
Title:
CARAVELLE INVESTMENT FUND, L.L.C.
By:
----------------------------------------------------
Name:
Title:
CERES FINANCE, LTD.
By: /s/ Gregory Stoeckle
----------------------------------------------------
Title: Authorized Signatory
CITICORP USA, INC.
By: /s/ Nicholas T. Erni
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Title: Attorney in Fact
COMERICA BANK, Detroit
By: /s/ Anthony L. Davis
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Title: Assistant Vice President
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CREDIT AGRICOLE INDOSUEZ, Chicago
By:
----------------------------------------------------
Name:
Title:
CREDIT LYONNAIS
By:
----------------------------------------------------
Name:
Title:
CYPRESSTREE INSTITUTIONAL FUND, LLC
By: CypressTree Investment Management Company,
Inc. its Managing Member
By:
----------------------------------------------------
Name:
Title:
CYPRESSTREE INVESTMENT FUND, LLC
By: CypressTree Investment Management Company,
Inc. its Managing Member
By:
----------------------------------------------------
Name:
Title:
DELANO COMPANY
By: Pacific Investment Management Company as its
investment advisor
By: PIMCO Management Inc., a general partner
By:
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Name:
Title:
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DRESDNER BANK, AG
By: /s/ A. Richard Morris Ken Hamilton
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Title: First Vice President Senior Vice President
EATON VANCE SENIOR INCOME TRUST
By: /s/ Payson F. Swaffield
----------------------------------------------------
Title: Vice President
ERSTE BANK
By:
----------------------------------------------------
Name:
Title:
FIFTH THIRD BANK OF COLUMBUS
By: /s/ Mark Ransom
----------------------------------------------------
Title: Vice President
FIRST UNION NATIONAL BANK
By: /s/ Andrew Payne
----------------------------------------------------
Title: Vice President
FLEET NATIONAL BANK
By:
----------------------------------------------------
Name:
Title:
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FOOTHILL INCOME TRUST, L.P.
By: /s/ Dennis Ascher
----------------------------------------------------
Title: Managing Member
FRANKLIN FLOATING RATE TRUST
By:
----------------------------------------------------
Name:
Title:
FREEMONT INVESTMENT & LOAN
By:
----------------------------------------------------
Name:
Title:
GENERAL ELECTRIC CAPITAL CORP.
By:
----------------------------------------------------
Name:
Title:
HARRIS TRUST AND SAVINGS BANK
By: /s/ C. Scott Place
----------------------------------------------------
Title: Vice President
HELLER FINANCIAL INC.
By: /s/ Linda W. Wolf
----------------------------------------------------
Title: Senior Vice President
THE HUNTINGTON NATIONAL BANK
By: /s/ J. Stephen Bennett
----------------------------------------------------
Title: Vice President
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IKB DEUTSCHE INDUSTRIEBANK
By: /s/ Manford Ziwey
----------------------------------------------------
Title: Director
INDOSUEZ CAPITAL
By: /s/ Melissa Marano
----------------------------------------------------
Title: Vice President
INDOSUEZ CAPITAL FUNDING IIA, LTD.
By:
----------------------------------------------------
Name:
Title:
KZH APPALOOSA LLC
By:
----------------------------------------------------
Name:
Title:
KZH BDC LLC
By:
----------------------------------------------------
Name:
Title:
KZH CRESCENT 3 LLC
By:
----------------------------------------------------
Name:
Title:
KZH III LLC
By:
----------------------------------------------------
Name:
Title:
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KZH ING-3 LLC
By: /s/ Susan Lee
----------------------------------------------------
Title: Authorized Agent
KZH PAMCO LLC
By:
----------------------------------------------------
Name:
Title:
KZH RIVERSIDE LLC
By: /s/ Susan lee
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Title: Authorized Agent
KZH WATERSIDE LLC
By: /s/ Susan Lee
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Title: Authorized Agent
KZH CNC LLC
By: /s/ Susan Lee
----------------------------------------------------
Title: Authorized Agent
KZH-CYPRESSTREE-1 LLC
By:
----------------------------------------------------
Name:
Title:
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KZH-ING-2 LLC
By:
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Name:
Title:
KZH-SOLEIL-2 LLC
By:
----------------------------------------------------
Name:
Title:
KEY BANK NATIONAL ASSOCIATION
By: /s/ Brendan Lawlor
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Title: Vice President
LANDESBANK RHEINLAND-PFALZ GIR
By: /s/ Gilsdorf Detlef Krejoi
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Title: Assistant Vice President Manager
LEHMAN COMMERCIAL PAPER INC.
By:
----------------------------------------------------
Name:
Title:
ML CBO IV (CAYMAN) LTD.
By:
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Name:
Title:
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ML CLO XII PILGRIM AMERICA
By: Pilgrim Investments, Inc., as its investment
manager
By:
----------------------------------------------------
Name:
Title:
ML CLO XX PILGRIM AMERICA
By: Pilgrim Investments, Inc., as its investment
manager
By:
----------------------------------------------------
Name:
Title:
MSDW PRIME INCOME TRUST
By:
----------------------------------------------------
Name:
Title:
MEESPIERSON N.V.
By: /s/ W. Gibson P. Hanratty
----------------------------------------------------
Title: Manager Head of Acquisition & Finance
MERRILL LYNCH PRIME RATE PORTFOLIO
By:
----------------------------------------------------
Name:
Title:
MERRILL LYNCH SENIOR FLOATING RATE FUND
By:
----------------------------------------------------
Name:
Title:
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METROPOLITAN LIFE INSURANCE CO.
By: /s/ James R. Dingler
----------------------------------------------------
Title: Director
MONUMENTAL LIFE INSURANCE COMPANY
By:
----------------------------------------------------
Name:
Title:
MOUNTAIN CLO TRUST
By:
----------------------------------------------------
Name:
Title:
MOUNTAIN CAPITAL CLO I, LTD.
By:
----------------------------------------------------
Name:
Title:
BANK ONE, MICHIGAN, as successor to
NBD BANK
By: /s/ Thomas E. Redmond
----------------------------------------------------
Title: Managing Director
NATIONAL CITY BANK
By: /s/ David B. Yates
----------------------------------------------------
Title: Vice President
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NATIONAL WESTMINSTER BANK, PLC
By:
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Name:
Title:
NORSE CBO, LTD.
By:
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Name:
Title:
NORTH AMERICAN SENIOR FLOATING RATE FUND
By: CypressTree Investment Management
Company, Inc. as Portfolio Manager
By:
----------------------------------------------------
Name:
Title:
ORIX USA CORPORATION
By: /s/ Hiroyuki Miyauckhi
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Title: EVP, Corporate Finance Group
OAK HILL SECURITIES FUND, L.P.
By: Oak Hill Securities GenPar, L.P. its General
Partner
By: Oak Hill Securities MGP, Inc. its General
Partner
By: /s/ Scott Krase
----------------------------------------------------
Title: Vice President
OASIS COLLATERALIZED HIGH INCOME
By: /s/ Gregory Stoeckle
----------------------------------------------------
Title: Authorized Signatory
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OCTAGON LOAN TRUST
By:
----------------------------------------------------
Name:
Title:
OLYMPIC FUNDING TRUST, SERIES 1999-1
By: /s/ Kelly Walker
----------------------------------------------------
Title: Authorized Agent
OSPREY INVESTMENTS PORTFOLIO
By: /s/ Mike Regan
----------------------------------------------------
Title: Vice President
OXFORD STRATEGIC INCOME FUND
By: EATON VANCE MANAGEMENT AS INVESTMENT ADVISOR
By: /s/ Payson F. Swaffield
----------------------------------------------------
Title: Vice President
PACIFICA PARTNERS I, L.P.
By: /s/ Thomas Colwell
----------------------------------------------------
Title: Vice President
PARIBAS
By:
----------------------------------------------------
Name:
Title:
PINEHURST TRADING, INC.
By: /s/ Kelly Walker
----------------------------------------------------
Title: Vice President
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COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
"RABOBANK NEDERLAND", Utrecht Branch
By: /s/ Michael Butz Nancy O'Connor
----------------------------------------------------
Title: Vice President Vice President
COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
"RABOBANK NEDERLAND", Utrecht Branch
By:
----------------------------------------------------
Name:
Title:
SKM LIBERTYVIEW CBO I LTD.
By: /s/ Kenneth Klegar
----------------------------------------------------
Title: Authorized Signatory
SANKATY HIGH YIELD ASSET PARTNERS
By: /s/ Diane Exter
----------------------------------------------------
Title: Executive Vice President & Portfolio Manager
SCOTIABANC, INC.
By:
----------------------------------------------------
Name:
Title:
SENIOR DEBT PORTFOLIO
By: Boston Management and Research
as Investment Advisor
By: /s/ Payson Swaffield
----------------------------------------------------
Title: Vice President
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SUNTRUST BANK, CENTRAL FLORIDA, N.A.
By: /s/ Stephen Leister
----------------------------------------------------
Title: Vice President
TORONTO DOMINION (TEXAS) INC.
By:
----------------------------------------------------
Name:
Title:
TRAVELERS INSURANCE COMPANY
By:
----------------------------------------------------
Name:
Title:
VAN KAMPEN CLO I, LIMITED
By: Van Kampen Management Inc., as Collateral Manager
By: /s/ Darvin D. Pierce
----------------------------------------------------
Title: Vice President
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ACKNOWLEDGEMENT AND CONSENT
---------------------------
In consideration of each Agent's and the Lenders' execution,
delivery and performance of the foregoing Waiver No. 2 (the "Second Waiver"),
each of the undersigned hereby (i) acknowledges the terms and provisions of the
Second Waiver and consents thereto and (ii) confirms and agrees that (x) 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 (y) 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 Second
Waiver to which this Acknowledgment and Consent is attached.
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
OLD FORT FINANCIAL CORP.
EARTHGRO, INC.
SANFORD SCIENTIFIC, INC.
EG SYSTEMS, INC.
SWISS FARMS PRODUCTS, INC.
By: /s/ Rebecca J. Bruening
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Title: Vice President