Exhibit 10.3

AMENDMENT NO. 3

TO

CREDIT AGREEMENT

THIS AMENDMENT NO. 3 TO CREDIT AGREEMENT (the “Amendment”) is made as of
December 8, 2006 by and among Central Garden & Pet Company, a Delaware
corporation (the “Company”), the institutions listed on the signature pages
hereto and JPMorgan Chase Bank, National Association, as the administrative
agent for the “Lenders” referred to below (the “Administrative Agent”).
Capitalized terms used but not otherwise defined herein shall have the
respective meanings given to them in the “Credit Agreement” referred to below.

W I T N E S S E T H:

WHEREAS, the signatories hereto are parties to that certain Credit Agreement,
dated as of February 28, 2006, among the Company, the Subsidiary Borrowers from
time to time parties thereto, the financial institutions from time to time
parties thereto (the “Lenders”) and the Administrative Agent (as amended by
Amendment No. 1 thereto dated as of May 16, 2006 and further amended by
Amendment No. 2 thereto dated as of August 24, 2006, and as the same may from
time to time be amended, restated, supplemented or otherwise modified, the
“Credit Agreement”);

WHEREAS, the parties hereto have agreed to amend the Credit Agreement on the
terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company, the
Lenders and the Administrative Agent have agreed to the following amendment to
the Credit Agreement.

1. Amendments. Effective as of the date hereof and subject to the satisfaction
of the conditions precedent set forth in Section 2 below, the Credit Agreement
is hereby amended as follows:

(a) The signatories agree that the purchase price paid or payable by the Company
or its Subsidiaries in connection with the Farnam Acquisition shall not be
deemed to exceed $300,000,000 as a result of any related assumption of
liabilities otherwise causing such excess.

(b) A new Section 9.14 is hereby added to the Credit Agreement immediately
following Section 9.13 as follows:

SECTION 9.14 Confirmation of Co-Obligors. Each of the Subsidiary Guarantors
hereby enters into this Agreement in order to ratify and affirm its obligations
under the Subsidiary Guaranty that such Subsidiary Guarantor is a co-obligor,
jointly and severally with the Borrowers and the other Subsidiary Guarantors,
with respect to the full and punctual payment and performance when due (whether
at stated maturity, upon

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acceleration or otherwise) of the Secured obligations, including, without
limitation, (i) the principal of and interest on each Loan made to any Borrower
pursuant to this Agreement, (ii) obligations owing under or in connection with
Letters of Credit, (iii) all other amounts payable by any Borrower under this
Agreement and the other Loan Documents, including, without limitation, all
obligations under any Swap Agreement, and (iv) the punctual and faithful
performance, keeping, observance, and fulfillment by any Borrower of all of the
agreements, conditions, covenants, and obligations of such Borrower contained in
the Loan Documents. Upon the failure by any Borrower or any other guarantor, as
applicable, to pay punctually any such amount or perform such obligation,
subject to any applicable grace or notice and cure period, each of the
Subsidiary Guarantors agrees that it shall forthwith on demand pay such amount
or perform such obligation at the place and in the manner specified in this
Credit Agreement, any Swap Agreement or the relevant other Loan Document, as the
case may be. Each of the Subsidiary Guarantors hereby agrees that its
obligations as a co-obligor is absolute and irrevocable.

2. Conditions of Effectiveness. This Amendment shall become effective as of the
date hereof if, and only if, the Administrative Agent shall have received:
(a) executed copies of this Amendment from the Company, each of the Subsidiary
Guarantors as of the date hereof and the Required Lenders and (b) executed
copies of the Reaffirmation attached hereto in the form of Exhibit A from the
existing Subsidiary Guarantors.

3. Representations and Warranties of the Company. The Company hereby represents
and warrants as follows:

(a) The Company has the power and authority and legal right to execute and
deliver this Amendment and the Credit Agreement (as modified hereby) and to
perform its obligations hereunder and thereunder. The execution and delivery by
the Company of this Amendment and the performance of its obligations hereunder
and under the Credit Agreement (as modified hereby) have been duly authorized by
proper proceedings, and this Amendment and the Credit Agreement (as modified
hereby) constitute legal, valid and binding obligations of the Company,
enforceable against the Company in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

(b) Neither the execution and delivery by the Company of this Amendment, nor the
consummation of the transactions herein contemplated, nor compliance with the
provisions hereof or of the Credit Agreement (as modified hereby) (i) will
require any consent or approval of, registration or filing with, or any other
action by, any Governmental Authority, except such as have been obtained or made
and are in full force and effect, (ii) will violate any applicable law or
regulation or the charter, by-laws or other organizational documents of the
Company or any of its Subsidiaries or any order of any Governmental Authority,
(iii) will violate or result in a default under any indenture, agreement or
other instrument binding upon the Company or any of its Subsidiaries or its
assets (including, without limitation, the Senior Subordinated Note Indenture
and the Senior Subordinated Notes), or give rise to a right thereunder to
require any payment to be made by the Company or any of its Subsidiaries or
(iv) will result in the creation or imposition of any Lien on any asset of the
Company or any of its Subsidiaries.

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(c) As of the date hereof and giving effect to the terms of this Amendment,
(i) no Default has occurred and is continuing and (ii) the representations and
warranties of the Company set forth in the Credit Agreement (as modified hereby)
and the other Loan Documents are true and correct in all material respects (or,
if any such representation or warranty is expressly stated to have been made as
of a specific date, as of such specific date).

4. Reference to and Effect on the Credit Agreement and Loan Documents.

(a) Upon the effectiveness of this Amendment, each reference to the Credit
Agreement in the Credit Agreement or any other Loan Document shall mean and be a
reference to the Credit Agreement as modified hereby. This Amendment is a Loan
Document pursuant to the Credit Agreement and shall (unless expressly indicated
herein or therein) be construed, administered, and applied, in accordance with
all of the terms and provisions of the Credit Agreement.

(b) The Company (i) agrees that this Amendment and the transactions contemplated
hereby shall not limit or diminish the obligations of the Company arising under
or pursuant to the Credit Agreement and the other Loan Documents to which it is
a party, (ii) reaffirms its obligations under the Credit Agreement and each and
every other Loan Document to which it is a party (including, without limitation,
each applicable Collateral Document), (iii) reaffirms all Liens on the
Collateral which have been granted by it in favor of the Administrative Agent
(for itself and the other Holders of Secured Obligations) pursuant to any of the
Loan Documents, and (iv) acknowledges and agrees that, except as specifically
modified above, the Credit Agreement and all other Loan Documents executed
and/or delivered in connection therewith shall remain in full force and effect
and are hereby ratified and confirmed.

(c) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of the Administrative Agent or the Lenders, nor constitute a waiver of or
consent to any modification of any provision of the Credit Agreement or any
other Loan Documents executed and/or delivered in connection therewith.

5. Governing Law. This Amendment shall be construed in accordance with and
governed by the law of the State of New York.

6. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

7. Counterparts. This Amendment may be executed by one or more of the parties
hereto on any number of separate counterparts (including by means of facsimile
or electronic transmission), and all of said counterparts taken together shall
be deemed to constitute one and the same instrument.

*******

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IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year
first above written.

 

CENTRAL GARDEN & PET COMPANY,

as the Company

By:  

/s/ Roger J. Fleischmann, Jr.

Name:   Roger J. Fleischmann, Jr. Title:   Vice President and Treasurer

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FARNAM COMPANIES, INC. FOUR PAWS PRODUCTS, LTD. KAYTEE PRODUCTS INCORPORATED
PENNINGTON SEED, INC. T.F.H. PUBLICATIONS, INC. WELLMARK INTERNATIONAL ALL-GLASS
AQUARIUM CO., INC. CEDAR WORKS, LLC GRANT LABORATORIES, INC. GRO TEC, INC.
GULFSTREAM HOME & GARDEN, INC. INTERPRET USA, LLC MATTHEWS REDWOOD AND NURSERY
SUPPLY, INC. NEW ENGLAND POTTERY, LLC NORCAL POTTERY PRODUCTS, INC. OCEANIC
SYSTEMS, INC. PENNINGTON SEED, INC. OF NEBRASKA PETS INTERNATIONAL, LTD PHAETON
CORPORATION SEEDS WEST, INC. THOMPSON’S VETERINARY SUPPLIES, INC. For each of
the foregoing entities By:  

/s/ Stuart W. Booth

Name:   Stuart W. Booth   Its Authorized Signatory

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JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Administrative Agent, the Issuing Bank, the Swingline Lender and a Lender

By:  

/s/ Clara Sohan

Name:   Clara Sohan Title:   Vice President

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BANK OF AMERICA, N.A.,

as Syndication Agent and a Lender

By:  

/s/ J. Casey Cosgrove

Name:   J. Casey Cosgrove Title:   Vice President

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CIBC WORLD MARKETS CORP.,

as a Co-Documentation Agent

By:  

/s/ Leonardo Fernandez

Name:   Leonardo Fernandez Title:   Executive Director CIBC INC., as a Lender
By:  

/s/ Leonardo Fernandez

Name:   Leonardo Fernandez Title:   Authorized Signatory

 

CANADIAN IMPERIAL BANK OF COMMERCE, as an Issuing Bank with respect to the
Existing Letters of Credit By:  

/s/ Leonardo Fernandez

Name:   Leonardo Fernandez Title:   Authorized Signatory

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SUNTRUST BANK, as an Issuing Bank with respect to the Existing Letters of
Credit, a Co-Documentation Agent and a Lender By:  

/s/ Hugh E. Brown

Name:   Hugh E. Brown Title:   Director

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UNION BANK OF CALIFORNIA, N.A.,

As a Co-Documentation Agent and a Lender

By:  

/s/ J. William Bloore

Name:   J. William Bloore Title:   Vice President

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WELLS FARGO BANK, N.A.,

as a Lender

By:  

/s/ Meggie Chichioco

Name:   Meggie Chichioco Title:   Senior Vice President

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HARRIS N.A.,

as a Lender

By:  

/s/ Jennifer A. Wendrow

Name:   Jennifer A. Wendrow Title:   Vice President

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COÖPERATIEVE CENTRALE RAIFFEISEN-

BOERENLEENBANK B.A., “RABOBANK

INTERNATIONAL” NEW YORK BRANCH,

as a Lender

By:  

/s/ Marina Kremer

Name:   Marina Kremer Title:   Vice President By:  

/s/ Rebecca O. Morrow

Name:   Rebecca O. Morrow Title:   Executive Director

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BNP PARIBAS,

as a Lender

By:  

/s/ Katherine Wolfe

Name:   Katherine Wolfe Title:   Managing Director By:  

/s/ Sandy Bertram

Name:   Sandy Bertram Title:   Vice President

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LASALLE BANK, NATIONAL ASSOCIATION,

as a Lender

By:  

/s/ Adam F. Lutastanski

Name:   Adam F. Lutastanski Title:   Vice President

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GENERAL ELECTRIC CAPITAL CORPORATION,

as a Lender

By:  

/s/ Dwayne Coker

Name:   Dwayne Coker Title:   Duly Authorized Signatory

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WACHOVIA BANK, NATIONAL ASSOCIATION,

as a Lender

By:  

/s/ Mark Supple

Name:   Mark Supple Title:   Director

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ING CAPITAL, LLC,

as a Lender

By:  

/s/ Marcy Lyons

Name:   Marcy Lyons Title:   Director

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US BANK NATIONAL ASSOCIATION

as a Lender

By:  

/s/ Janet Jordan

Name:   Janet Jordan Title:   Vice President

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COBANK, ACB,

as a Lender

By:  

/s/ S. Richard Dill

Name:   S. Richard Dill Title:   Vice President

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HSBC BANK USA, NATIONAL ASSOCIATION

as a Lender

By:  

/s/ Robert P. Reynolds

Name:   Robert P. Reynolds Title:   First Vice President & Senior Relationship
Manager

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CALYON NEW YORK BRANCH,

as a Lender

By:  

/s/ F. Frank Herrara

Name:   F. Frank Herrara Title:   Director By:  

/s/ Richard Laborie

Name:   Richard Laborie Title:   Director

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FARM CREDIT SERVICES OF AMERICA, PCA,

as a Lender

By:  

/s/ Steve L. Moore

Name:   Steve L. Moore Title:   Vice-President

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GREENSTONE FARM CREDIT SERVICES, ACA/FLCA,

as a Lender

By:  

/s/ Jeff Pavlik

Name:   Jeff Pavlik Title:   AVP/Lending Officer

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AGFIRST FARM CREDIT BANK,

as a Lender

By:  

/s/ Curtis D. Carlson

Name:   Curtis D. Carlson Title:   Vice President

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Humboldt Woods Segregated Portfolio

By: Tall Tree Investment Management, LLC

as Collateral Manager

as a Lender By:  

/s/ Michael J. Starshak Jr.

Name:   Michael J. Starshak Jr. Title:   Officer

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Founders Grove CLO, Ltd.

By: Tall Tree Investment Management, LLC

as Collateral Manager

as a Lender By:  

/s/ Michael J. Starshak Jr.

Name:   Michael J. Starshak Jr. Title:   Officer

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WELLS CAPITAL MANAGEMENT 16496500

as a Lender

By:  

/s/ Christopher Lee

Name:   Christopher Lee Title:   Senior Analyst

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WELLS CAPITAL MANAGEMENT 18866500,

as a Lender

By:  

/s/ Christopher Lee

Name:   Christopher Lee Title:   Senior Analyst

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De Meer Middle Market CLO 2006-1, Ltd.,

as a Lender

De Meer Asset Management, a division of LaSalle Financial

Services, Inc., as Collateral Manager

By:  

/s/ Will S. Bloom

Name:   Will S. Bloom Title:   Assistant Vice President

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NACM CLO I,

as a Lender

By:  

/s/ Joanna Willars

Name:   Joanna Willars Title:   Authorized Signatory

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LightPoint CLO 2004-1, Ltd.

Marquette US/European CLO p.l.c.

as a Lender

By:  

/s/ Colin Donlan

Name:   Colin Donlan Title:   Director

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General Electric Capital Corporation, as Administrator for,

GE CFS Loan Holding 2006-2 LLC,

as a Lender By:  

/s/ Dwayne Coker

Name:   Dwayne Coker Title:   Duly Authorized Signatory

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Stanfield AZURE CLO, Ltd

By: Stanfield Capital Partners, LLC

as its Collateral Manager

as a Lender By:  

/s/ Christopher E. Jansen

Name:   Christopher E. Jansen Title:   Managing Partner

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Stanfield Vantage CLO, Ltd

By: Stanfield Capital Partners, LLC

as its Asset Manager

as a Lender By:  

/s/ Christopher E. Jansen

Name:   Christopher E. Jansen Title:   Managing Partner

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EXHIBIT A

Reaffirmation

Each of the undersigned hereby acknowledges receipt of a copy of Amendment
No. 3, dated as of December 8, 2006 (the “Amendment”), to the Credit Agreement,
dated as of February 28, 2006, by and among Central Garden & Pet Company, a
Delaware corporation (the “Company”), the Subsidiary Borrowers from time to time
parties thereto, the financial institutions from time to time parties thereto
(the “Lenders”) and JPMorgan Chase Bank, National Association, as the
administrative agent for the Lenders (the “Administrative Agent”) (as amended by
Amendment No. 1 thereto dated as of May 16, 2006, further amended by Amendment
No. 2 thereto dated as of August 24, 2006, and further amended by the Amendment,
and as the same may from time to time hereafter be amended, restated,
supplemented or otherwise modified, the “Credit Agreement”). Capitalized terms
used in this Reaffirmation and not defined herein shall have the meanings given
to them in the Credit Agreement.

Each of the undersigned, by its signature below, hereby (a) acknowledges and
consents to the execution and delivery of the Amendment by the parties thereto,
(b) agrees that the Amendment and the transactions contemplated thereby shall
not limit or diminish the obligations of such Person arising under or pursuant
to the Collateral Documents and the other Loan Documents to which it is a party,
(c) reaffirms all of its obligations under the Loan Documents to which it is a
party, (d) reaffirms all Liens on the Collateral which have been granted by it
in favor of the Administrative Agent (for itself and the other Holders of
Secured Obligations) pursuant to any of the Loan Documents, and (e) acknowledges
and agrees that each Loan Document executed by it remains in full force and
effect and is hereby reaffirmed, ratified and confirmed. All references to the
Credit Agreement contained in any Loan Document shall be a reference to the
Credit Agreement as so modified by the Amendment and as the same may from time
to time hereafter be amended, restated, supplemented or otherwise modified. The
Amendment is a Loan Document pursuant to the Credit Agreement and shall (unless
expressly indicated therein) be construed, administered, and applied, in
accordance with all of the terms and provisions of the Credit Agreement.

Dated as of December 8, 2006

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IN WITNESS WHEREOF, this Reaffirmation has been duly executed as of the date
first written above.

 

FARNAM COMPANIES, INC. FOUR PAWS PRODUCTS, LTD. KAYTEE PRODUCTS INCORPORATED
PENNINGTON SEED, INC. T.F.H. PUBLICATIONS, INC. WELLMARK INTERNATIONAL ALL-GLASS
AQUARIUM CO., INC. CEDAR WORKS, LLC GRANT LABORATORIES, INC. GRO TEC, INC.
GULFSTREAM HOME & GARDEN, INC. INTERPRET USA, LLC MATTHEWS REDWOOD AND NURSERY
SUPPLY, INC. NEW ENGLAND POTTERY, LLC NORCAL POTTERY PRODUCTS, INC. OCEANIC
SYSTEMS, INC. PENNINGTON SEED, INC. OF NEBRASKA PETS INTERNATIONAL, LTD PHAETON
CORPORATION SEEDS WEST, INC. THOMPSON’S VETERINARY SUPPLIES, INC. For each of
the foregoing entities By:  

/s/ Stuart W. Booth

Name:   Stuart W. Booth   Its Authorized Signatory