Document:

EX-10.1

MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT

among

THE SCOTTS COMPANY LLC,

as Company

THE SCOTTS MIRACLE-GRO COMPANY,

as Parent

THE BANKS PARTY HERETO

and

CRÉDIT AGRICOLE CORPORATE & INVESTMENT BANK,

as Administrative Agent

CRÉDIT AGRICOLE CORPORATE & INVESTMENT BANK,

as Sole Lead Arranger

Dated as of September 21, 2011

Pillsbury Winthrop Shaw Pittman LLP

1540 Broadway

New York, New York 10036

1

Table of Contents

Page

	 	 	 	 	 
	SECTION 1. DEFINITIONS AND INTERPRETATION
	 	 	1	 
	SECTION 2. TERMS OF PURCHASE ON AN UNCOMMITTED BASIS.
	 	 	10	 
	SECTION 3. CONDITIONS PRECEDENT
	 	 	10	 
	SECTION 4. PURCHASE OF RECEIVABLES
	 	 	11	 
	SECTION 5. LIMITED LIABILITY
	 	 	18	 
	SECTION 6. THE COMPANY AS SERVICER AND AGENT OF
	 	 	19	 
	BANKS
SECTION 7. PAYMENTS
	 	 	21	 
	SECTION 8. CHANGES IN CIRCUMSTANCES
	 	 	26	 
	SECTION 9. FURTHER ASSURANCES
	 	 	27	 
	SECTION 10. REPRESENTATIONS AND WARRANTIES
	 	 	28	 
	SECTION 11. COVENANTS
	 	 	31	 
	SECTION 12. PARTIAL INVALIDITY
	 	 	34	 
	SECTION 13. NO BANK LIABILITY FOR CONTRACT
	 	 	34	 
	SECTION 14. NOTICES, ADDRESSES, LANGUAGE
	 	 	34	 
	SECTION 15. FEES, COSTS AND INDEMNITY
	 	 	35	 
	SECTION 16. CALCULATIONS AND CERTIFICATE
	 	 	38	 
	SECTION 17. SET-OFF
	 	 	38	 
	SECTION 18. TERMINATION
	 	 	38	 
	SECTION 19. MISCELLANEOUS
	 	 	41	 
	SECTION 20. GOVERNING LAW
	 	 	44	 
	SECTION 21. OPTIONAL REPURCHASE
	 	 	45	 
	SECTION 22. GUARANTY; PARENT COVENANT
	 	 	45	 
	SECTION 23. CONFIDENTIALITY
	 	 	47	 
	SECTION 24. ADMINISTRATIVE AGENT
	 	 	48	 

Schedule 1 — Purchase Request

Schedule 2 — Conditions Precedent

Schedule 3 — UCC Details Schedule

Schedule 4 — Form of Portfolio Report

Schedule 5 — Approved Debtors

2

MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT

MASTER ACCOUNTS RECEIVABLE PURCHASE AGREEMENT, dated as of September 21, 2011 (as amended,
amended and restated, supplemented or otherwise modified from time to time, this “Agreement”),
among THE SCOTTS COMPANY LLC, a limited liability company organized under the laws of Ohio (the
“Company”), THE SCOTTS MIRACLE-GRO COMPANY, a company organized under the laws of Ohio (the
“Parent”), THE BANKS PARTY HERETO, and CRÉDIT AGRICOLE CORPORATE & INVESTMENT BANK (“CA-CIB”), as
administrative agent (together with its permitted successors in such capacity, the “Administrative
Agent”).

WHEREAS, after the date hereof and subject to the terms and conditions of this Agreement, the
Company may sell to the Banks and the Banks may purchase from the Company, on a revolving and
uncommitted basis, certain Receivables.

WHEREAS, the transactions hereunder shall constitute a true sale of the Purchased Receivables,
providing the Banks with the full risks and benefits of ownership of the Purchased Receivables
without recourse to the Company, except as may otherwise be set forth herein.

NOW, THEREFORE, in consideration of the above premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

	 	 	SECTION 1. DEFINITIONS AND INTERPRETATION.

In this Agreement and each Schedule:

“Act” has the meaning ascribed to it in Section 19.9(a).

“Administrative Agent” has the meaning ascribed to it in the preamble hereto.

“Adverse Claim” means any Encumbrance on a Purchased Receivable other than those arising under
this Agreement.

“Affiliate” means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person. For the purposes of this
definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled
by” and “under common control with”), as applied to any Person, means the possession, directly or
indirectly, of the power (i) to vote 20% or more of the voting equity interests of such Person or
(ii) to direct or cause the direction of the management and policies of that Person, whether
through the ownership of voting securities or by contract or otherwise.

“Agreed Base Value” shall be an amount equal to the product of (a) the Original Amount of the
Receivable being purchased and (b) 100% less the Agreed Dilution Percentage.

“Agreed Dilution Percentage” means, with respect to a Purchased Receivable at any time, a rate
equal to (a) 5% if the sum (the “Sum”) of (i) the product of (x) two (2) and (y) Historical
Dilution for the applicable Approved Debtor in respect of such Purchased Receivable in the same
month of the previous year, and (ii) Late Interest Percentage then in effect does not exceed 5%,
(b) 10% if the Sum in respect of such Purchased Receivable is greater than 5% and does not exceed
10%, and (c) the actual Sum if greater than 10%.

“Agreement” has the meaning ascribed to it in the preamble hereto.

“Agreement Amount” means the maximum aggregate Funded Amounts of all Purchased Receivables,
which shall not exceed $325,000,000 at any time.

“Applicable Margin” means the applicable margin per annum for each Approved Debtor as listed
on Schedule 5 hereto.

“Approved Debtor” means each Person listed as an Approved Debtor on Schedule 5 hereto.

“Bank” means each Person listed on the signature pages hereto as a Bank, and any other Person
(other than a natural Person) that becomes a party hereto pursuant to an Assignment and Assumption
Agreement. For the avoidance of doubt, any reference to a “Bank” or to “Banks” with respect to any
Purchased Receivable shall be a reference to such Bank or Banks, as the case may be, that have
purchased such Purchased Receivable hereunder.

“Bank’s Stated Amount” means the amount set forth under such Bank’s signature on the signature
page hereto, or in the applicable assignment and assumption agreement with respect to which it
became a party hereto.

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and
hereafter in effect, or any successor statute.

“Beneficiaries” means the Administrative Agent and each Bank.

“Blocked Accounts” means each account opened by the Company in its name for each Approved
Debtor with JPMorgan Chase Bank, N.A. or such other bank approved by the Administrative Agent for
the purpose of collecting the Purchased Receivables of such Approved Debtor and which shall be
subject to a blocked account agreement with the Administrative Agent providing the Administrative
Agent, for the benefit of the Banks, with control over such account.

“Business Day” means a day on which banks are open for business in Atlanta, Georgia, Chicago,
Illinois and New York, New York, and which is also a day for trading by and between banks in Dollar
deposits in the London interbank market.

“CA-CIB” has the meaning ascribed to it in the preamble hereto.

“Closing Date” means the date of this Agreement or such later Business Day upon which each
condition described on Schedule 2 shall be satisfied or waived in a manner acceptable to each of
the Administrative Agent and each of the Banks in its reasonable discretion.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any
successor statute of similar import, together with the regulations thereunder, in each case as in
effect from time to time. References to sections of the Internal Revenue Code also refer to any
successor sections.

“Collections” means all payments made on each Purchased Receivable and any other payments,
receipts or recoveries (including any casualty insurance proceeds) by, or on behalf of, any Debtor
or otherwise with respect to any Purchased Receivable, including any deemed Collections.

“Company” has the meaning ascribed to it in the preamble hereto.

“Contract” means a contract or purchase order between the Company and a Debtor, as the same
may be amended and supplemented from time to time in accordance with the terms hereof, out of which
has arisen one or more Purchased Receivables.

“Credit Agreement” means that certain Second Amended and Restated Credit Agreement dated as of
June, 30 2011, among the Parent, the subsidiary borrowers from time to time party thereto, the
several lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative
agent, as amended, restated, supplemented or modified from time to time.

“Debtor” means a person obligated to make payments in respect of a Receivable.

“Debtor Default Event” means, as of any date of determination, an Approved Debtor shall be in
default due to a Financial Inability to Pay of an amount equal to or greater than $3,000,000 with
respect to its payment of any of its Purchased Receivables.

“Debtor Sublimit” means the sublimit to the Agreement Amount for each Approved Debtor as
listed on Schedule 5 hereto.

“Defaulted Receivable” means any Purchased Receivable which has not been paid when due or
cannot be paid solely as a result of the applicable Approved Debtor’s Financial Inability to Pay.

“Defaulting Bank” has the meaning ascribed to it in Section 4.12.

“Dilution” means in respect of each Debtor, any discount, adjustment, set-off, counterclaim,
deduction, reduction, warranty issue or refusal to pay not arising from such Debtor’s Financial
Inability to Pay, which would have the effect of reducing the amount of part or all of any
Purchased Receivable owed by a Debtor. For the avoidance of doubt, “Dilution” shall not include
any Trade Credit Amount included in the determination of the Original Amount of any Purchased
Receivable.

“Discount” means, with respect to each Purchased Receivable, 100% minus the product of (a) the
higher of (x) the sum of LIBOR for one week as of the purchase date thereof plus the Applicable
Margin with respect to the applicable Approved Debtor in respect of such Purchased Receivable, and
(y) the sum of LIBOR for three months as of the purchase date thereof plus the Applicable Margin
with respect to the applicable Approved Debtor in respect of such Purchased Receivable, and (b) a
fraction the numerator of which is the number of days in the applicable Settlement Period and the
denominator of which is 360.

“Dollar,” “USD” and “$” shall mean the lawful currency of the United States of America.

“Economic and Trade Sanctions and Anti-Terrorism Laws” means any laws relating to economic or
trade sanctions, terrorism or money laundering, including without limitation Executive Order 13224,
the Patriot Act, the regulations administered by OFAC, the Trading with the Enemy Act (12 U.S.C.
§95), and the International Emergency Economic Powers Act (50 U.S.C. §1701-1707).

“Encumbrance” means a mortgage, assignment, security interest, pledge, lien or other
encumbrance securing any obligation of any person or any other type of adverse claim or
preferential arrangement (including, without limitation, title transfer and retention arrangements)
having a similar effect.

“Facility Party” means the Parent and the Company.

“Fee Letter” means the letter among the Administrative Agent, the Company and the Parent of
even date herewith providing for the payment of certain fees by the Company to the Administrative
Agent as specified therein.

“Final Collection Date” means the date, following the termination of purchases under this
Agreement, on which all amounts to which the Banks shall be entitled in respect of Purchased
Receivables and all other amounts owing to the Banks and the Administrative Agent hereunder and
under the other Transaction Documents are paid in full.

“Financial Inability to Pay” means a Debtor’s failure or inability to pay a Receivable as a
result of a deterioration in such Debtor’s credit quality as evidenced by an event where such
Debtor (A)(i) is dissolved (other than pursuant to a consolidation, amalgamation or merger);
(ii) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability
generally to pay its debts as they become due; (iii) makes a general assignment, arrangement or
composition with or for the benefit of its creditors; (iv) institutes or has instituted against it
a proceeding seeking judgment of insolvency or bankruptcy or any other relief under any bankruptcy
or insolvency law or other similar law affecting creditor’s rights, or a petition is presented for
its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or
presented against it, such proceeding or petition (aa) results in a judgment of insolvency or
bankruptcy or the entry of an order for relief or the making of an order for its winding up or
liquidation or (bb) is not dismissed, discharged, stayed or restrained in each case within 60 days
of the institution or presentation thereof; (v) has a resolution passed for its winding-up,
official management or liquidation; (vi) seeks or becomes subject to the appointment of an
administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar
official for it or for all or substantially all of its assets; (vii) has a secured party take
possession of all or substantially all its assets or has a distress, execution, attachment,
sequestration or other legal process levied, enforced or sued on or against all or substantially
all its assets and such secured party maintains possession, or any such process is not dismissed,
discharged, stayed or restrained, in each case within 60 days thereafter, (viii) causes or is
subject to any event with respect to it which, under the applicable laws of any jurisdiction, has
an analogous effect to any of the events specified in clauses (i) to (vii) (inclusive); (ix) takes
any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of
the foregoing acts; or (x) at any time that the long-term unenhanced, unsecured indebtedness rating
of such Debtor is “CCC” (or its equivalent) or lower, fails to pay 10% or more of the aggregate
amount of Purchased Receivables owed by it, for more than 30 days beyond the relevant Maturity
Dates thereof (unless such Debtor claims, and the Company agrees and confirms in writing, such
failure to pay is a result of a commercial dispute related to such Purchased Receivables), or (B)
fails, after giving effect to any applicable grace period for the relevant obligation(s) of such
Debtor (other than such Receivable), to make, when due, any payments equal to or exceeding
$25,000,000 under such obligations.

“Funded Amount” means the aggregate amount of Purchase Prices paid by the Banks hereunder,
less the Collections, if any, theretofore paid to and received by the Banks.

“Governmental Authority” means any nation or government, any state or other political
subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

“Historical Dilution” means, with respect to a Debtor at any time, a rate equal to a fraction
the numerator of which is the value of the “Credit Memos” for the same month of the previous year
and the denominator of which is the value of “Sales” for such month and year, in each case for such
Debtor as indicated in the relevant Portfolio Report received by the Administrative Agent and as
distributed to the Banks.

“Indemnified Taxes” has the meaning ascribed to in Section 7.2.

“Invoice” means an invoice issued by the Company to a Debtor for payment for goods or services
supplied pursuant to a Contract between the Company and such Debtor.

“Late Interest Percentage” means, with respect to Purchased Receivables, a rate equal to the
product of (a) the sum of (i) LIBOR for ninety-eight (98) days as of the relevant date, and (ii)
1.05%, and (b) a fraction the numerator of which is ninety-eight (98) and the denominator of which
is 360.

“Law” means any law (including common law), constitution, statute, treaty, regulation, rule,
ordinance, order, injunction, writ, decree or award of any Governmental Authority.

“LIBOR” means the rate per annum determined by the Administrative Agent on the date that is
two (2) Business Days prior to the applicable Settlement Date on Reuters LIBOR page, or if such
service is not available, on Reuters LIBOR 01 page, or if such service is not available, by
reference to the British Bankers’ Association Interest Settlement Rates for deposits in USD for a
period equal to such relevant period; provided to the extent that an interest rate is not
ascertainable pursuant to the foregoing provisions of this definition, “LIBOR” shall be the
interest rate per annum determined by the Administrative Agent to be the average of the rates per
annum at which deposits in USD are offered for such relevant period by the Administrative Agent in
the London interbank market in London, England on the date that is two (2) Business Days prior to
the beginning of such period.

“Material Adverse Effect” means a material adverse effect on (a) the business, operations,
property or financial condition of the Parent and its subsidiaries taken as a whole or (b) the
validity or enforceability of any material term of this Agreement or the rights or remedies of the
Administrative Agent or the Banks hereunder or acquired hereunder.

“Maturity Date” means, with respect to a Purchased Receivable, the date on which such
Purchased Receivable becomes due and payable by the Debtor.

“Monsanto Agreement” means the Amended and Restated Exclusive Agency and Marketing Agreement
by and between The Monsanto Company and the Company.

“Monsanto Receivables” means accounts receivable (and all related proceeds) originated and
owned by The Monsanto Company from an Approved Debtor and otherwise subject to the terms of the
Monsanto Agreement.

“OFAC” means the Office of Foreign Assets Control of the United States Department of the
Treasury.

“OFAC Lists” has the meaning ascribed to it in Section 19.9(b).

“OFAC Violation” has the meaning ascribed to it in Section 19.9(c).

“Original Amount” means, in relation to a Purchased Receivable, the amount owing from the
Debtor in respect of such Purchased Receivable, such amount being the aggregate amount payable
under the relevant Invoice, less any related Trade Credit Amount applied against such payable
amount on or before the purchase date of such Purchased Receivable. For the avoidance of doubt,
the Original Amount of any Purchased Receivable shall not be reduced as a result of any write-down
or write-off of such Purchased Receivable by any Bank.

“Other Taxes” means any and all present or future stamp or documentary taxes or any other
excise, sales, goods and services or transfer taxes, charges or similar levies arising from any
payment made under any Transaction Document or from the execution, delivery or enforcement of, or
otherwise with respect to, any Transaction Document.

“Parent” has the meaning ascribed to it in the preamble hereto.

“Payment Account” means the account of the Administrative Agent set forth under its signature
on the signature page hereto, or such other account as the Administrative Agent may hereafter
designate in writing as such to the other parties hereto.

“Person” means an individual, partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture, Governmental
Authority or other entity of whatever nature.

“Portfolio Report” means a report, substantially in the form of Schedule 4, signed by an
officer of the Company and which shall contain, inter alia, the list of Receivables which have been
determined to be Purchased Receivables hereunder, with separate entries for (i) Receivables
previously purchased by the Banks in accordance with Section 4.1 and (ii) Replacement Receivables,
as well as a list of all relevant Invoices and for each Approved Debtor, a calculation of the Trade
Credit Amount.

“Prime Rate” means the rate of interest per annum that CA-CIB announces from time to time as
its prime lending rate in the United States, as in effect from time to time. The Prime Rate is a
reference rate and does not necessarily represent the lowest or best rate actually charged to any
customer. CA-CIB or any other Bank may make commercial loans or other loans at rates of interest
at, above or below the Prime Rate.

“Pro Rata Share” means, with respect to any Bank, (i) with respect to any Purchased
Receivable, an amount (expressed as a percentage) equal to (x) that portion of the Purchase Price
of such Purchased Receivable paid by such Bank, divided by (y) the Purchase Price
of such Purchased Receivable paid by all of the Banks, and (ii) for all other purposes under this
Agreement, an amount (expressed as a percentage) equal to (x) the aggregate Purchase Prices of all
Purchased Receivables paid by such Bank, divided by (y) the aggregate Purchase
Prices of all Purchased Receivables paid by all of the Banks. For the avoidance of doubt, the Pro
Rata Share of any Bank with respect to any Receivable that is required to be repurchased by such
Bank in accordance with Section 4.5(e) shall be such Bank’s Pro Rata Share with respect to such
Receivable as of the initial Settlement Date on which it was purchased.

“Purchase Price” means, in relation to any Purchased Receivable, the Agreed Base Value thereof
times the applicable Discount.

“Purchase Request” means a request for purchase in the form attached hereto as Schedule 1.

“Purchased Receivable” means, at any time, any Receivable sold by the Company and acquired by
the Banks under this Agreement.

“Receivable” means the indebtedness of an Approved Debtor to the Company arising under a
Contract and which is evidenced by an Invoice (including the right to receive payment of any
interest or finance charges or other liabilities of such Debtor under the Contract), together with
all Related Assets with respect thereto and all Collections and other proceeds with respect to the
foregoing.

“Related Assets” means, with respect to the Receivables (i) all related rights and remedies
under or in connection with the Contract with respect thereto including bills of lading, bills of
exchange, promissory notes and accessions, (ii) all guaranties, suretyships, letters of credit,
security, liens and other arrangements supporting payment thereof, (iii) all Sales Records
(including electronic records) with respect thereto, (iv) all related insurance, and (v) all
proceeds of the foregoing.

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and
representatives of such Person and of such Person’s Affiliates.

“Replacement Receivables” has the meaning ascribed to it in Section 4.3 hereof.

“Repurchase Event” means, with respect to a Purchased Receivable:

(i) any representation or warranty made by the Company in any Transaction Document with
respect to such Receivable is inaccurate, incorrect or untrue, in any material respect, on
any date as of which it is made or deemed to be made; or

(ii) the Company fails to comply with any of its covenants with respect to such
Receivable set forth in Section 11 of this Agreement or in any other Transaction Document;
or

(iii) any Purchased Receivable becomes subject to a Dilution, or on any day the
Original Amount of such Purchased Receivable (x) is reduced or adjusted as a result of any
defective, rejected, returned, repossessed or foreclosed merchandise, any defective or
rejected services, any discount or other adjustment by the Company (including on account of
credits, rebates, chargebacks, inventory transfers, allowances for early payments and other
allowances) or any obligation of the Company owed to the applicable Debtor to make such a
discount or adjustment, (y) is reduced or cancelled as a result of a setoff, deduction or
counterclaim in respect of any claim by the Debtor thereof against the Company (whether such
claim arises out of the same or a related or an unrelated transaction) or (z) otherwise is
less than the amount reported by the Company in (or for purposes of) any settlement
statement delivered pursuant to this Agreement (for any reason other than receipt of
Collections on such Purchased Receivable or such Purchased Receivable being written off as
uncollectible based on Debtor’s Financial Inability to Pay); provided, however, that to the
extent that the occurrence of any matter described in the foregoing paragraphs (x) or (y)
would otherwise result in a Repurchase Event, no Repurchase Event with respect to any such
Purchased Receivable shall occur if the amount of any such adjustment caused by the
occurrence of such event has already been included in the calculation of the Purchase Price
paid with respect to such Purchased Receivable.

“Required Banks” means, at any time, the Banks representing more than 50% of the then
aggregate Purchase Prices of all Purchased Receivables paid by all of the Banks; provided the
Purchased Receivables of any Defaulting Bank shall be disregarded in determining Required Banks at
any time.

“Responsible Officer” means the Chairman, President or an Executive, Senior or other Vice
President of the Company and, with respect to financial matters, the Chief Financial Officer, the
Treasurer or the Controller of the Company.

“Sales Records” means the accounts, all sales ledgers, purchase and sales day books, sales
invoices, supply contracts and other related books and records of the Company relating to a Debtor
and on an individual Purchased Receivable basis for the purpose of identifying amounts paid or to
be paid in respect of such Purchased Receivable.

“Settlement Date” means, Wednesday of each calendar week (or, if such Wednesday is not a
Business Day, the immediately succeeding Business Day) or such other date as the Administrative
Agent, each Bank and the Company may from time to time agree to, provided that (i) with respect to
the initial purchase hereunder, the date of such purchase shall be the initial Settlement Date and
(ii) on or after the Termination Date, the Administrative Agent and the Banks may select Settlement
Dates by notice to the Company.

“Settlement Period” means (a) with respect to the initial purchase, a period from and
including the date of such purchase pursuant to Section 4.2 to and including the first Tuesday
following the date of the initial purchase or as otherwise agreed between the Administrative Agent,
each Bank and the Company and (b) thereafter, each period from and including the Wednesday
following the immediately preceding Settlement Period to and including the Tuesday of the
immediately following calendar week or as otherwise agreed between the Administrative Agent, each
Bank and the Company, provided at any time the Administrative Agent, each Bank and the Company may
mutually agree to select any different period as the Settlement Period.

“Stated Termination Date” means September 21, 2012, or such later date as may be extended
annually by mutual agreement of each Bank and the Company no later than ninety (90) days in advance
of the then scheduled Stated Termination Date.

“Tax” means with respect to any Person any present or future taxes, charges, fees, levies,
imposts, duties or assessments (including income, gross receipts, profits, withholding, excise,
property, sales, use, value added, license, occupation and franchise taxes and any interest or
penalty payable in connection with any failure to pay any of the same); Taxes and Taxation shall be
construed accordingly.

“Termination Date” means the earliest to occur of (i) termination of this Agreement pursuant
to Section 18, (ii) the Stated Termination Date and (iii) the Business Day designated by either the
Company or the Administrative Agent and the Banks with no less than thirty (30) days prior notice
to the other party.

“Termination Event” means any of the events set forth in Section 18.

“Termination Interest” means, with respect to the Total Purchased Receivables, a rate equal to
the product of (a) the sum of (i) LIBOR for five (5) days and (ii) 3.05%, (b) a fraction the
numerator of which is the number of days during the period referred to in clause (i) above plus
fifteen (15) days, and the denominator of which is 360 and (c) the aggregate Agreed Base Value of
the Total Purchased Receivables.

“Total Purchased Receivables” has the meaning ascribed to it in Section 18.5.

“Trade Credit Amount” means, with respect to a Purchased Receivable, the Dollar amount from
time to time accrued on the books and records of the Company and as reported on each Portfolio
Report delivered to the Administrative Agent and as distributed to the Banks as a trade credit,
trade allowance, return allowance or similar arrangement between the Company and the related
Approved Debtor that might result in a reduction of such Purchased Receivable in the future.

“Transaction Document” means each of this Agreement, each Purchase Request, each Portfolio
Report, the blocked account agreements, and all related documents.

“UCC” means the Uniform Commercial Code as from time to time in effect in the State of New
York.

	 	 	SECTION 2. TERMS OF PURCHASE ON AN UNCOMMITTED BASIS.

Section 2.1. Prior to the Termination Date, subject to the terms and conditions of this
Agreement, the Company may, at the Company’s option, offer to sell and assign from time to time to
the Banks, and the Banks hereby agree, severally and not jointly, to consider on an uncommitted
basis to purchase a 100% interest in all or any portion of the present and future Receivables of
each Approved Debtor as identified in the most recent Portfolio Report delivered to the
Administrative Agent under this Agreement or as identified in such other manner acceptable to the
Administrative Agent and the Required Banks provided that the Funded Amount at no time shall exceed
(a) the Agreement Amount or (b) with respect to an Approved Debtor, the applicable Debtor Sublimit;
further provided, that in any event the Receivables that may be purchased and sold hereunder with
respect to an Approved Debtor shall be deemed to be the Receivables of such Approved Debtor with
the earliest due date (based upon their net invoice value excluding all accruals for any
discounts).

	 	 	SECTION 3. CONDITIONS PRECEDENT.

Section 3.1. The Company shall not be entitled to request the Banks to make the initial
purchase of Purchased Receivables, unless:

(a) the Administrative Agent and each Bank have received all of the documents listed in
Schedule 2 in form and substance reasonably satisfactory to each of them;

(b) the representations and warranties made by the Company in Section 10 of this Agreement and
in any other Transaction Documents are true and correct as of the Closing Date;

(c) the Administrative Agent has received the fees and other amounts payable by the Company
pursuant to Section 15.1;

(d) the Company shall have established the segregated Blocked Accounts for the collection of
the Purchased Receivables;

(e) no Termination Event shall have occurred; and

(f) the Closing Date falls at least four Business Days after the date of the delivery of the
initial Purchase Request and initial Portfolio Report to the Administrative Agent and the Banks.
Such Portfolio Report shall list the Receivables requested to be purchased in a format and contain
such information as shall be reasonably satisfactory to the Administrative Agent and the Banks.

	 	 	 
	SECTION 4.PURCHASE OF RECEIVABLES.

	Section 4.1.

	 	No purchase shall be made hereunder except as follows:

(a) Prior to 12:00 noon New York time at least four (4) Business Days prior to a Settlement
Date on which the Company wishes the Banks to purchase Receivables, the Administrative Agent shall
have received a Purchase Request and a Portfolio Report in connection with such purchase, which the
Administrative Agent shall promptly, and if received by 12:00 noon on the day of receipt thereof
from the Company, by no later than 2:00 pm on such date, transmit to each Bank, together with an
estimate prepared by the Administrative Agent of the Purchase Price for the applicable Receivables
to be sold on such Settlement Date, and the Pro Rata Share of each of such Bank.

(b) No later than 10:00 a.m. New York time on the third Business Day prior to such Settlement
Date, each Bank will notify the Administrative Agent of whether it has agreed, in its sole
discretion, to purchase the Receivables set forth in the applicable Purchase Request on the next
Settlement Date; provided if any Bank (a “Non-Purchasing Bank”) notifies the Administrative Agent
in accordance with the foregoing that such Bank will not purchase its share of such Receivables
(provided that any such notice shall apply to all Receivables set forth in the applicable Purchase
Request, and no Bank shall have the right to purchase only certain individual Receivables subject
to the same Purchase Request), the Administrative Agent shall promptly notify each other Bank of
such Non-Purchasing Bank’s decision, and each other Bank (i) shall have the right, but not the
obligation, in its sole discretion, to purchase a pro rata share of such Non-Purchasing Bank’s
share of such Receivables, and (ii) shall notify the Administrative Agent of whether it will make
such purchase no later than 11:00 a.m. New York time on the third Business Day prior to such
Settlement Date,; provided further, (x) if any Bank fails to promptly notify the Administrative
Agent of its decision to purchase any Receivable after the receipt of the applicable Purchase
Request, then such Bank shall be deemed to be a Non-Purchasing Bank with respect to such
Receivable, and (y) if any Bank fails to promptly notify the Administrative Agent of its decision
to purchase any Receivable after receipt of notice of a Non-Purchasing Bank’s decision, such Bank
shall be deemed to have decided to not purchase its pro rata share of such Receivable; provided
further, for the avoidance of doubt, this Section 4.1(b) shall not apply to any repurchase of a
Receivable by a Bank required in accordance with Section 4.5(e).

(c) No later than 12:00 noon New York time three (3) Business Days prior to the Settlement
Date, the Administrative Agent will notify the Company of the Banks that will purchase the
applicable Receivables on such Settlement Date, and if, in accordance with Section 4.1(b), the
aggregate amount of such Receivables is less than the Receivables set forth in the applicable
Purchase Request, then the notice by the Administrative Agent to the Company shall set forth the
applicable Receivables subject to such Purchase Request that such Banks are wiling to purchase,
which Receivables shall be determined by the Administrative Agent in its reasonable discretion.

(d) No later than 12:00 noon New York time two (2) Business Days prior to the Settlement Date,
the Administrative Agent shall calculate the Purchase Price for the applicable Receivables to be
sold on such Settlement Date and promptly send such calculation to the Company and each of the
Banks, together with the Pro Rata Share of each of such Bank (giving effect to Section 4.1(b) and
Section 4.5(e), as applicable).

(e) The aggregate of the Funded Amount of the Receivables referred to in the Portfolio Report
(after giving effect to such purchase) as of the applicable Settlement Date will not exceed (i) the
Agreement Amount or (ii) with respect to an Approved Debtor, the Debtor Sublimit. No Bank’s Pro
Rata Share of the aggregate of the Funded Amount of the Receivables referred to in the Portfolio
Report (after giving effect to such purchase) as of the applicable Settlement Date will exceed such
Bank’s Stated Amount.

(f) The Invoices referred to in the Portfolio Report each shall have a date certain for
payment which is no more than 90 days from the earlier of (i) the date of sale or (ii) dispatch of
the goods by the Company, and are denominated in Dollars.

(g) As of such Settlement Date, the representations and warranties made by the Company in
Section 10 of this Agreement are true and correct in all material respects (except for those
representations and warranties that are conditioned by materiality, which shall be true and correct
in all respects) and no Termination Event shall have occurred.

Section 4.2. (a) With respect to each purchase of Receivables on a Settlement Date:

(i) Each Bank that is purchasing Receivables on such Settlement Date, whether in its
sole discretion in accordance with Section 4.1 or as required by Section 4.5(e), shall make
its Pro Rata Share of the Purchase Price thereof available to the Administrative Agent not
later than 2:00 p.m. (New York City time) on such Settlement Date, by wire transfer of same
day funds in Dollars, to the Payment Account; and

(ii) Upon receipt of the amounts set forth in Section 4.2(a)(i), the Administrative
Agent, on behalf of the purchasing Banks, shall pay the Purchase Price to the Company for
the Purchased Receivables sold to such Banks on such Settlement Date, less any other amounts
owing to the Administrative Agent and the Banks hereunder, by 4:00 p.m. New York time on
such Settlement Date.

(b) If no Bank decides, in its sole discretion, to purchase any Receivables offered by the
Company in accordance with Section 3 on the terms and conditions then in effect (but subject to the
requirements of Section 4.5(e)), the Banks may in their discretion propose in writing to the
Company modifications to the Applicable Margin, Approved Debtors, and/or Debtor Sublimits as
conditions to their consent to purchase such Receivables within one Business Day of receipt of the
applicable Purchase Request; if the Company agrees to such modifications, it shall so indicate in
writing within one Business Day of receipt of such proposal, whereupon the Banks may decide in
their discretion to purchase the Receivables listed in the relevant Purchase Request on such
modified terms in accordance with clause (a) above.

(c) The Company shall be entitled, to the extent collected by the Company, to receive and
retain an amount equal to Collections on the Purchased Receivables in excess of all amounts owed to
the Banks as set forth in Section 4.5(d) and (e), such amount to first be applied to the delivery
to the Company of any Trade Credit Amounts due to the Company, as applicable, with the remainder of
such amounts to be paid to the Company as a servicing fee. Without limiting the liability and
obligations of the Company hereunder, each Bank shall be entitled to offset against and deduct from
such excess all amounts owing by the Company to such Bank under this Agreement and the Transaction
Documents not previously distributed to such Bank. So long as the Company is acting as servicer
for the Purchased Receivables, the Company will be entitled to retain such excess (less such
offsets and deductions) as the Purchased Receivables are collected. Should the Administrative
Agent terminate the Company’s appointment as servicer, each Bank will pay to the Company it’s Pro
Rata Share of such excess over and above the amounts which such Bank is entitled to offset, upon
collection of all amounts owing in respect of the Purchased Receivables purchased thereby.

(d) The parties agree that the calculation of Agreed Base Value of Purchased Receivables
includes Trade Credit Amounts which the Approved Debtors have historically been entitled to receive
if certain conditions in the future are met. To the extent that such Approved Debtors are not
entitled to receive any such Trade Credit Amounts, or in the event that any such Approved Debtors
are entitled to receive such Trade Credit Amounts but elect not to apply the corresponding Trade
Credit Amount to the reduction of any payment made on a Purchased Receivable, and the Collections
with respect to such Purchased Receivable include any such corresponding Trade Credit Amount, the
amount thereof shall be attributable to and paid to the Company.

Section 4.3. Until the Termination Date, with the prior consent of the Banks in accordance
with Section 4.1(a) if such purchase is to occur on a Settlement Date, and without consent if such
purchase is to occur between two Settlement Dates, Collections may be used by the Company, as
servicer, and as agent for and on account of the Banks, to purchase from the Company Receivables of
Approved Debtors that meet all of the requirements contained herein applicable to the initial
Purchased Receivables (“Replacement Receivables”), which Replacement Receivables shall be held for
the exclusive benefit and account of the Banks to the same extent as the original Purchased
Receivables and shall constitute Purchased Receivables for all purposes of the Agreement. For
purposes of maintaining the perfection of the Banks’ interest in any Purchased Receivables and the
proceeds thereof, each Bank hereby appoints the Company as its agent in respect of any Collections
prior to such Collections being used to purchase Replacement Receivables, provided that the
Company’s sole duty as such agent shall be to hold such Collections in trust for the benefit of
such Bank or to purchase Replacement Receivables as aforesaid.

Section 4.4. (a) The Company will instruct all Debtors under the Purchased Receivables to
make all payments on account thereof to the relevant Blocked Accounts. Each Invoice shall also
require that payments be made to the relevant Blocked Accounts. All Collections will be received
and held in the Blocked Accounts in the name of the Administrative Agent, for the benefit of the
Banks, as the owner thereof and, except as otherwise provided in this Agreement, will be applied in
the manner set forth in (b) below. The Administrative Agent may, or at the request of the Required
Banks, shall, suspend or terminate all of the Company’s right, power and interest in a Blocked
Account at any time upon the occurrence and during the continuance of a Termination Event.

(b) Prior to the Termination Date, all of the Collections deposited into the Blocked Accounts
shall be swept daily and transferred into the Company’s operating account, as designated by the
Company to the financial institution maintaining such Blocked Accounts, and each Bank hereby
directs the Company to, no later than on the Business Day following the day on which Collections
are received in such operating account, pay, apply or reserve for payment, as the case may be, such
Collections as follows:

(i) first, reserve for payment to the Banks at the next Settlement Date the amount
equal to the difference between the Agreed Base Value and the Purchase Price of the
Purchased Receivables (other than Defaulted Receivables);

(ii) second, reserve for payment to the Banks at the next Settlement Date the amount of
any Dilutions which may have accrued or been granted in relation to the relevant Purchased
Receivables that were not otherwise accounted for in the calculation of Purchase Price;

(iii) third, reserve for payment to the Banks on the next Settlement Date (A) the
Purchase Price of the Purchased Receivables (other than Defaulted Receivables), except for
such amounts as may be used to purchase Replacement Receivables for the time remaining in
the applicable Settlement Period by the Company on the Banks’ behalf (“Net Daily
Collections”) at the price determined in accordance with Section 4.1(d) and (B) all other
amounts which may be owing to the Administrative Agent or any Bank under this Agreement or
any other Transaction Document with respect to any Collections of Purchased Receivables; and

(iv) fourth, with respect to any Collections of Purchased Receivables which include any
Trade Credit Amounts owing to the Company, reserve for payment to the Company such
corresponding Trade Credit Amounts subject to the last sentence of the following paragraph.

If on any Settlement Date any Bank decides in its sole discretion (but subject to the requirements
of Section 4.5(e)), not to purchase Replacement Receivables title to which has not yet transferred
to such Bank pursuant hereto with Collections, the Company shall remit and hold such Bank’s Pro
Rata Share of all Collections (including, without limitation, Collections received relating to
Trade Credit Amounts) in the Blocked Accounts until the next Settlement Date, whereupon it shall
follow the procedures set forth in Section 4.5(d) and (e), provided, however, that if a Termination
Event has occurred or the Termination Date has been declared, on the applicable Final Collection
Date the Company shall follow the procedures set forth in Section 18. The Company shall comply in
all respects with each such direction of the applicable Bank. The Company’s interest in any
Collections relating to Trade Credit Amounts or that it would otherwise receive as its servicing
fee shall at all times following the occurrence of a Termination Event be subordinate to each
Bank’s interest in the Collections until the Final Collection Date.

(c) While the Company is acting in the capacity of Servicer, any amounts in respect of the
payment of Net Daily Collections shall be deemed to have been paid to the Company and deposited
into the Blocked Account immediately upon receipt thereof by the Company.

(d) Except as set forth in Sections 4.5(e) and 21, at no time shall the Company have any
right, title or interest in or to, or be the owner of, any Purchased Receivable.

(e) Each of the Administrative Agent and each Bank agrees that at no time shall either the
Administrative Agent or any Bank have any rights or interest in any Monsanto Receivables and that
the Company shall at all times be entitled to any collections deposited into the Blocked Accounts
related to Monsanto Receivables; provided, however, that if at any time after the Termination Date,
an Approved Debtor does not make a full payment on the Purchased Receivables and the Monsanto
Receivables and the applicable Approved Debtor shall have not otherwise stated to which accounts
receivable the payment should be applied and the Company has notified the Administrative Agent and
the Banks that the Company has not determined pursuant to the terms of this Agreement and the
Monsanto Agreement as to which accounts receivable the payment should be applied, each of the
Administrative Agent and each Bank agrees that such payment shall be applied on a pro rata basis to
the Purchased Receivables and the Monsanto Receivables of such Approved Debtor.

Section 4.5. (a) The Company and the Banks shall settle amounts owing as between them
hereunder on each Settlement Date.

(b) The Company shall deliver to the Administrative Agent (for distribution to the Banks)
prior to the Closing Date the initial Portfolio Report, in the form of a hard copy or
electronically in a manner acceptable to the Administrative Agent, as at the last day of the
immediately preceding week.

(c) Thereafter:

(i) by 12:00 noon New York time four Business Days prior to each Settlement Date; and

(ii) within five Business Days following the Termination Date, the Company shall
deliver to the Administrative Agent and the Banks, in the form of a hard copy or
electronically in a manner acceptable to the Administrative Agent, a Portfolio Report as at
the following dates (or on the date otherwise agreed between the Company and the
Administrative Agent and each Bank):

(x) as at the last day of the immediately preceding Settlement Period
(in the case of paragraph (i) above);

(y) as at the Company’s close of business on the day immediately
preceding the Termination Date (in the case of paragraph (ii) above).

(d) On each Settlement Date by 12:00 noon New York time, to the extent available from
Collections:

(i) the Company shall pay to the Administrative Agent for the benefit of the Banks at
the Payment Account for prompt payment to the Banks on such Settlement Date (if received by
the Administrative Agent by 12:00 noon New York time, and if not, promptly after receipt
thereof) the amounts set forth in Section 4.4(b)(i) and (ii) in respect of Purchased
Receivables (other than Defaulted Receivables), to the extent any part thereof has not been
previously paid;

(ii) If the difference between the amount reserved pursuant to Section 4.4(b)(iii) and
the Purchase Price for Replacement Receivables in accordance with Section 4.3 is positive,
then the Company shall pay to the Banks by deposit to the Payment Account such difference.

(iii) If the difference between the amount reserved pursuant to Section 4.4(b)(iii) and
the Purchase Price for Replacement Receivables in accordance with Section 4.3 is negative,
then each Bank shall pay to the Company such Bank’s Pro Rata Share of such difference, or at
each Bank’s discretion, the Company shall deduct from the amounts due to such Bank pursuant
to clause (d)(i) above such difference.

(iv) To the extent that any Bank has received any Collections directly, so long as no
Termination Event has occurred, such Bank shall pay to the Company by deposit to the
Company’s operating account (as designated by the Company), such amounts as may be used to
purchase Replacement Receivables that such Bank has consented to purchase, as well as an
amount equal to the aggregate amount of all Trade Credit Amounts that the Company is
entitled to receive that have been received by such Bank from such Collections.

(e) On each Settlement Date, (i) the Company shall purchase from the Banks all Purchased
Receivables other than Defaulted Receivables for a purchase price equal to the Agreed Base Value of
such receivables minus any amounts received by the Banks as repayment of such Purchased Receivables
and (ii) each Bank (x) shall repurchase any Receivables previously purchased by such Bank in
accordance with Section 4.1 and any Replacement Receivables which have been purchased with such
Bank’s consent in accordance with Section 4.3, in each case to the extent such Receivables have not
yet been paid as of such Settlement Date, and (y) may in such Bank’s sole discretion purchase such
Replacement Receivables which have been purchased by the Company without such Bank’s consent during
the period between the previous Settlement Date and the current Settlement Date in accordance with
Section 4.3; in all cases the Company may use the purchase price that it would have paid the Banks
for the Purchased Receivables in accordance with clause (i) above to purchase Replacement
Receivables, provided in each case that the Company complies with the limitations set forth in
Section 2.1 relating to the Agreement Amount and the Debtor Sublimits.

Section 4.6. (a) On each Settlement Date in respect of which the Banks have agreed or been
required in accordance with Section 4.5(e) to purchase Receivables, title to all currently existing
Receivables of the Approved Debtors set forth in each Portfolio Report originated by the Company
shall, ipso facto, and without any further action on the part of the Company or the Administrative
Agent or any Bank, transfer to the Banks to the extent necessary so that the Purchase Price of all
Purchased Receivables is equal to the Funded Amount of such Purchased Receivables.

(b) If at any time the sale of all of the Receivables by the Company hereunder is limited by
the Agreement Amount, the applicable Debtor Sublimit, or any other applicable limit set forth
herein, the Receivables of such Approved Debtor originated by the Company that are otherwise
purchased and sold hereunder up to such limitations shall be deemed to be the Receivables of such
Approved Debtor with the earliest due date (based upon their net invoice value excluding all
accruals for any discounts).

Section 4.7. (a) The Company will from time to time within five Business Days following any
request, furnish the Administrative Agent and each Bank with a calculation of the amounts paid to
or held in trust for such Bank by the Company under this Agreement.

(b) The Company will provide the Administrative Agent and each Bank with such other reports,
information, documents, books and records as the Administrative Agent or such Bank may reasonably
request and which may be lawfully disclosed or provided to the Administrative Agent or such Bank,
including, without limitation, a certificate signed by its officers attesting to (i) the balance
owing on each Purchased Receivable, (ii) the Maturity Date of each Purchased Receivable and the
fact that the goods sold and/or services provided under the terms of the relevant Contracts were
shipped in accordance with the terms of such Contracts, (iii) a copy of the purchase order or sales
order and invoices relating to each Purchased Receivable, (iv) a copy of the bill of lading and any
other shipping document relating to the Purchased Receivable and all billings, statements,
correspondence and memoranda directed to the customer in relation to each Purchased Receivable, and
(v) after the Termination Date, a full accounting of daily Collections received.

Section 4.8. The Administrative Agent and each Bank may keep records of all purchases, which
records shall be consistent with all information set forth in the Portfolio Reports delivered to
the Administrative Agent and each Bank, and evidence the dates and amounts of purchases and the
applicable Discount in effect from time to time. Such records shall be presumptive evidence but
the failure to record any purchase shall not limit or otherwise affect any obligations of the
Company hereunder or the Debtors’ obligations to make payments on the Purchased Receivables when
due; provided in the event of any inconsistency between the Administrative Agent’s records and any
Bank’s records, the recordations in the Administrative Agent’s records shall govern.

Section 4.9. The Company will, from time to time, at its expense, promptly execute and deliver
all instruments and documents and take all action that may be reasonably necessary and that the
Administrative Agent and each Bank may reasonably request, in order to perfect, protect or more
fully evidence such Bank’s ownership of the Purchased Receivables, or to enable the Administrative
Agent or any Bank to exercise or enforce any of its rights hereunder.

Section 4.10. Any payment by a Debtor in respect of any indebtedness owed by it to the Company
in respect of Purchased Receivables shall, except as otherwise specified by such Debtor or required
by the related Contract or law, be applied, first, as a Collection of any Purchased Receivables
then outstanding of such Debtor in the order of the age of such Purchased Receivables, starting
with the oldest of such Purchased Receivables and, second, to any other indebtedness of such Debtor
to the Company in respect of Purchased Receivables.

Section 4.11. All purchases shall be made by the Banks simultaneously and proportionately to
their respective Pro Rata Shares, it being understood that no Bank shall be responsible for any
default by any other Bank in such other Bank’s obligation to make a purchase requested hereunder
nor shall the Bank’s Stated Amount of any Bank be increased or decreased as a result of a default
by any other Bank in such other Bank’s obligation to make a purchase requested hereunder, unless
such Bank agrees to such purchase, increase or decrease, as the case may be, in writing.

Section 4.12. In the event that a Bank fails to make its Pro Rata Share of the Purchase Price
(or any portion thereof) available to the Administrative Agent in accordance with section 4.2(a)(i)
(such Bank, a “Defaulting Bank”), the Administrative Agent or a non-Defaulting Bank may, in its
sole discretion, make such amount available to the Company in excess of its Pro Rata Share in such
Purchased Receivable, and if more than one non-Defaulting Bank intends to make such amount
available to the Company, then the amount thereof shall be allocated pro rata amongst all such
non-Defaulting Banks that are willing to make such amount available to the Company. If the
Administrative Agent or non-Defaulting Bank, as the case may be, shall have made such funds
available, then, to the extent that such Defaulting Bank shall not have made its Pro Rata Share of
the Purchase Price available to the Company, such Defaulting Bank agrees to repay to the
Administrative Agent or non-Defaulting Bank, as the case may be, forthwith on demand such
corresponding amount together with interest thereon, for each day from and including such purchase
date to but excluding the date such amount is repaid to the Administrative Agent or non-Defaulting
Bank, as the case may be, at a rate determined by the Administrative Agent or non-Defaulting Bank,
as the case may be, to represent its cost of overnight or short-term funds plus the Applicable
Margin and reasonable breakage costs (which determination shall be conclusive absent manifest
error). If such Defaulting Bank shall repay to the Administrative Agent or non-Defaulting Bank, as
the case may be, such corresponding amount, such amount shall constitute such Defaulting Bank’s Pro
Rata Share of the Purchased Receivable for purposes of this Agreement. Notwithstanding anything to
the contrary herein (a) the Administrative Agent shall not be liable to the Company or any other
Person for the failure of a Defaulting Bank to make its Pro Rata Share of the Purchase Price (or
any portion thereof) available to the Company in accordance with Section 4.2(a)(i) or otherwise and
(b) no non-Defaulting Bank shall be liable to the Company or any other Person for the failure of a
Defaulting Bank to make its Pro Rata Share of the Purchase Price (or any portion thereof) available
to the Company in accordance with Section 4.2(a)(i) or otherwise. The Company hereby reserves any
and all rights or remedies that may be available under applicable Laws against any Defaulting Bank
in relation to the foregoing.

	 	 	 
	SECTION 5.LIMITED LIABILITY.

	Section 5.1.

	 	Deemed Collections/Repurchase Obligation.

5.1.1 If a Repurchase Event with respect to a Purchased Receivable occurs under clause (ii) of
the definition thereof and the related reduction, adjustment, cancellation or setoff relates only
to a portion of the aggregate Original Amount and not the entire aggregate Original Amount, the
Company shall be deemed to have received on such day a Collection on such Purchased Receivable in
the amount of such reduction, adjustment, cancellation or setoff. All such Collections deemed
received by the Company under this Section 5.1.1 shall be remitted by the Company to such account
as shall be directed by the Administrative Agent in accordance with Section 7.1. On receipt of all
amounts referred to above, the Banks shall (at the cost and expense of the Company) execute such
documents as may be necessary to re-assign that portion of the applicable Purchased Receivables
which represents the amounts so paid, without recourse, representation or warranty (except as to
the title thereto by the Banks), to the Company.

5.1.2 Except as set forth in Section 5.1.1 with respect to partial reductions, adjustments,
cancellations or setoffs of any Original Amount, if a Purchased Receivable remains unpaid and a
Repurchase Event with respect to such Purchased Receivable has occurred, the Administrative Agent
may, by written notice, require the Company to pay to the Banks in respect of such Purchased
Receivable, as directed by the Administrative Agent, an amount equal to the Agreed Base Value of
such Purchased Receivable (or so much of it as was paid by the Banks to the Company and remains
unpaid as Collections), and if such Purchased Receivable is being repurchased by the Company after
the Maturity Date of such Purchased Receivable, together with interest thereon at the interest rate
specified in Section 7.6 from the due date to the date of the Company’ payment in full thereof, and
any other amounts then payable by the Company hereunder including breakage costs under Section 7.4,
whereupon such amount shall become due and payable from the Company to the Banks on the date
specified in such notice and shall be paid into an account specified by the Administrative Agent.
On receipt of all amounts referred to above, the Banks shall (at the cost and expense of the
Company) execute such documents as may be necessary to re-assign the applicable Purchased
Receivables without recourse, representation or warranty (except as to the title thereto by the
Banks), to the Company.

Section 5.2. True Sale. It is the intention of the parties hereto that each purchase made
hereunder shall constitute a sale and assignment of the related Purchased Receivable (and not
merely a pledge), which sale and assignment is absolute, irrevocable and without recourse except as
set forth in Sections 4.5(e), 5.1, 7.2, 7.4, 8, 15 and 18.5 and shall provide the Banks with the
full benefits of ownership of such Purchased Receivable. In the event that, notwithstanding the
intent of the parties, such purchase is deemed by a court of competent jurisdiction to constitute a
pledge rather than a sale and assignment, the Company does hereby grant to the Administrative
Agent, for the benefit of the Banks, in order to secure all the obligations of the Company to the
Banks and the Administrative Agent hereunder, a first priority security interest in, to and on, the
Purchased Receivables and the products and proceeds thereof including, without limitation, all
Collections, all Trade Credit Amounts, all Related Assets and all other monies, instruments,
securities, documents, investment property, financial assets and other property related to the
Purchased Receivables from time to time on deposit in or credited to the Blocked Accounts or any
other accounts and all other such property relating to the Purchased Receivables or any of them,
and, in connection therewith, the Company hereby authorizes the Administrative Agent to file UCC
financing statements with respect to the transactions contemplated hereby, together with any
amendments relating thereto.

	 	 	SECTION 6. THE COMPANY AS SERVICER AND AGENT OF BANKS.

Section 6.1. Appointment of Servicer. Notwithstanding the sale of Purchased Receivables
pursuant to this Agreement, the Company shall continue to be responsible for the servicing and
administration of the Purchased Receivables sold by it as agent and trustee for the Banks, all on
the terms set out in this Agreement and subject to the right of the Banks to terminate the Company
as servicer, agent and trustee pursuant to this Agreement at any time following the occurrence of a
Termination Event, subject to the termination provisions of Section 6.3. In its capacity as
servicer, the Company shall:

(a) direct each Approved Debtor to make all payments on all Receivables, including Purchased
Receivables and Receivables not purchased by the Banks, to the Blocked Accounts;

(b) immediately pay over to the Blocked Accounts any Collections of Purchased Receivables
received by the Company to the extent received other than in a Blocked Account, which shall be
received in trust for the Banks;

(c) promptly upon becoming aware thereof, notify the Administrative Agent (and the
Administrative Agent shall promptly notify the Banks upon such notification thereof) in the event
that all or any part of any Purchased Receivable is not paid in full within seven (7) Business Days
following the Maturity Date thereof;

(d) comply with the terms and provisions of Section 4 hereof with regard to Collections,
actions to be taken at each Settlement Date and the purchase at each Bank’s option of Replacement
Receivables; and

(e) provide the Administrative Agent (for prompt distribution to the Banks) with a weekly
reconciliation and Portfolio Report setting forth the list of Purchased Receivables and reconciling
Collections made to the Blocked Accounts pursuant to paragraph (a) above in form and in substance
as agreed upon between the Administrative Agent, the Banks and the Company.

Section 6.2. Agency. All products or proceeds (including Collections) of any Purchased
Receivable received by the Company (or the Company’s agent) shall be held by the Company (or the
Company’s agent) in trust for the Administrative Agent and the Banks.

Section 6.3. Termination of Appointment. The Administrative Agent may, and at the request of
the Required Banks, shall, at any time following the occurrence of a Termination Event, or,
immediately if upon the bankruptcy or insolvency of the Company or the Parent (however evidenced),
(i) at its discretion give notice to each Debtor and take any lawful action to collect any
Purchased Receivable sold from the Company directly from the respective Debtor and (ii) by notice
in writing terminate the appointment of the Company as the Banks’ servicer and agent for the
servicing of Purchased Receivables, in which case the Company undertakes to the Administrative
Agent and the Banks not to interfere with such servicing or collection of any Purchased Receivable
nor attempt to receive, nor itself make collection from the Debtor in respect of such Purchased
Receivables. The Company shall have the option to repurchase all, or any portion of, Purchased
Receivables sold by it upon any termination of the Company as servicer at the Repurchase Price as
set forth in Section 21.1, provided no bankruptcy or insolvency (however evidenced) has occurred
with respect to the Company or the Parent. The Company hereby grants and conveys to the
Administrative Agent on behalf of the Banks an irrevocable power of attorney (coupled with an
interest) authorizing and permitting the Administrative Agent, at its option, with or without
notice to the Company, to do any one of the following: (a) endorsing the name of the Company upon
any checks or other Receivables, (b) endorsing the name of the Company on any freight or express
bill or bill of lading relating to any Purchased Receivables; (c) taking all action as the
Administrative Agent deems appropriate, including, without limitation, the execution and filing of
financing statements in the name of and on behalf of the Company to perfect any of the security
interests granted to the Administrative Agent, for the benefit of the Banks, herein;
provided, unless and until a Termination Event shall have occurred, the Administrative
Agent shall not exercise such power of attorney. The Company agrees that neither the
Administrative Agent, any Bank nor the attorney-in-fact will be liable for any acts of commission
or omission nor for any error of judgment or mistake of fact or law except to the extent the same
constitutes gross negligence or willful misconduct. Without limiting the foregoing, in the event
that a Debtor Default Event shall occur with respect to any Approved Debtor, the Administrative
Agent and the Banks shall have the rights and remedies as set forth in this Section 6.3 with
respect to the Purchased Receivables of such Approved Debtor, and (i) references in this Section
6.3 to “Purchased Receivables” shall be deemed to be to the Purchased Receivables of such Approved
Debtor, and (ii) references in this Section 6.3 to the “Termination Date” shall be deemed to be to
the determination date of the occurrence of such Debtor Default Event.

	 	 	 
	SECTION 7.PAYMENTS.

	Section 7.1.

	 	Place and Time.

7.1.1 All payments to be made by the Company to the Banks pursuant to this Agreement shall be
made on the date such amount is due by not later than 12:00 p.m. New York time to the Payment
Account, or such other account as may be specified by the Administrative Agent. The Administrative
Agent shall promptly distribute to each Bank, at such address as such Bank shall indicate in
writing, such Bank’s applicable Pro Rata Share of all such payments to the extent received by the
Administrative Agent.

7.1.2 All payments to be made by the Administrative Agent and/or the Banks pursuant to this
Agreement shall be made on the date such amount is due by not later than 4:00 p.m. New York Time to
the account of the Company notified to the Administrative Agent by the Company.

Section 7.2. Taxes: Deduction; Withholding; Grossing Up.

7.2.1 Any and all payments by the Company to or for the account of any Bank under any
Transaction Document shall be made free and clear of and without deduction for any Taxes or Other
Taxes; provided, however that, for this purpose, such Taxes or Other Taxes shall not include
(i) overall income taxes (however determined), franchise taxes, or branch profits taxes, in each
case, imposed on any Bank by the United States, the jurisdiction under whose laws such Bank is
organized, the jurisdiction of such Bank’s principal place of business or the jurisdiction in which
such Bank holds Receivables, or any political subdivision thereof; (ii) any backup withholding that
is required by the Code to be withheld from amounts payable to any Bank that has failed to comply
with Section 7.2.5, (iii) any United States withholding tax imposed with respect to any payment by
the Company pursuant to any Transaction Document, but only up to the rate (if any) at which United
States withholding tax would apply to such payments to such Bank at the time such Bank first
becomes a party to this Agreement as more fully set forth in Section 7.2.5(b)(iv), and (iv) any and
all taxes imposed pursuant to or as a result of Section 1471 through 1474 of the Code and any
applicable Treasury Regulations promulgated thereunder or published administrative guidance
implementing such Code sections, whether in existence on the date hereof or promulgated or
published hereafter (“FATCA”) (all such Taxes other than those referred to in the provisos
(i) through (iv) above shall hereinafter be referred to as “Indemnified Taxes”). If the Company
shall be required by law to deduct any Indemnified Taxes from or in respect of any sum payable
hereunder to any Bank, then (A) the sum payable shall be increased by the amount necessary to yield
to such Bank (after payment of all Taxes) an amount equal to the sum it would have received had no
such deductions been made, (B) the Company shall make such deductions, and (C) the Company shall
pay the amount deducted to the relevant taxation authority or other authority in accordance with
applicable law. Further, if Company is required by law to deduct any Taxes other than Indemnified
Taxes from or in respect of any sum payable hereunder to any Bank, then (A) Company shall make such
deductions, (B) the Company shall pay the amount deducted to the relevant taxation authority or
other authority in accordance with applicable law, and (C) the amounts so deducted and paid to the
relevant taxation authority shall be treated under this Agreement as made to such Bank.

7.2.2 If the Company shall be required by law to deduct any Taxes or Other Taxes (whether or
not Indemnified Taxes) from or in respect of any sum payable hereunder to any Bank, as promptly as
possible thereafter, the Company shall send to the Administrative Agent and the affected Bank, a
certified copy of an original official receipt showing payment thereof or such other evidence of
such payment as may be available to the Company and acceptable to the taxing authorities having
jurisdiction over such Bank. If the Company fails to pay any Taxes or Other Taxes so deducted when
due to the appropriate taxing authority or fails to remit to the affected Bank the required
receipts or other required documentary evidence, the Company shall indemnify the affected Bank, as
applicable, for any incremental Taxes, interest or penalties that may become payable by such party
as a result of any such failure.

7.2.3 The Company shall indemnify each Bank, within twenty (20) Business Days after written
demand therefor, for the full amount of any Indemnified Taxes paid by such Bank on or with respect
to any payment by or on account of any obligation of the Company hereunder (including Indemnified
Taxes imposed or asserted on or attributable to amounts payable under this Section 7.2) and any
penalties, interest and reasonable expenses arising therefrom or with respect thereto. Such demand
shall be made as promptly as practicable, but in any event within 90 days after such affected Bank
obtains actual knowledge of such event; provided, however, that if an affected Bank fails to make
such demand within 90 days after such affected Bank obtains knowledge of such event, such affected
Bank shall, with respect to compensation payable in respect of such event, not be entitled to
compensation in respect of the costs and losses incurred between the 90th day after such affected
Bank obtains actual knowledge of such event and the date such affected Bank makes such demand.

7.2.4 If any Bank determines, in its sole discretion, that it has received a refund or credit
of any Taxes or Other Taxes as to which it has been indemnified by the Company, it shall pay over
such refund or credit to the Company (but only to the extent of indemnity payments made, or
additional amounts paid, by the Company under this Section 7.2 with respect to the Taxes or Other
Taxes giving rise to such refund), net of all out-of-pocket expenses of such Bank and without
interest (other than any interest paid by the relevant Governmental Authority with respect to such
refund net of any applicable Taxes payable in respect of such interest); provided, that the Company
agrees to repay each such Bank, within ten (10) Business Days after the request of such Bank, the
amount paid over to the Company (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) in the event such Bank is required to repay such refund to such
Governmental Authority. This Section 7.2 shall not be construed to require any Bank to make
available its tax returns (or any other information relating to its Taxes which it deems
confidential) to the Company or any other Person.

7.2.5 (a) Each Bank shall deliver to the Company and to the Administrative Agent, at the time
or times prescribed by applicable laws or when reasonably requested by the Company or the
Administrative Agent, such properly completed and executed documentation prescribed by applicable
laws or by the taxing authorities of any jurisdiction and such other reasonably requested
information as will permit the Company or the Administrative Agent, as the case may be, to
determine (x) whether or not payments made under any Transaction Document are subject to Taxes,
(y) if applicable, the required rate of withholding or deduction, and (z) such Bank’s entitlement
to any available exemption from, or reduction of, applicable Taxes in respect of all payments to be
made to such Bank by the Company pursuant to this Agreement or otherwise to establish such Bank’s
status for withholding tax purposes in the applicable jurisdiction.

(b) Without limiting the generality of the foregoing:

(i) any Bank that is a “United States Person” within the meaning of Section 7701(a)(30)
of the Code, and not an exempt recipient described in Section 6049(b)(4) of the Code, shall
deliver to the Company and the Administrative Agent executed originals of Internal Revenue
Service Form W-9 or such other documentation or information prescribed by applicable laws or
reasonably requested by the Company or the Administrative Agent as will enable the Company
or the Administrative Agent, as the case may be, to determine whether or not such
Administrative Agent and/or any Bank is subject to backup withholding or information
reporting requirements; and

(ii) each Bank that is organized under the laws of a jurisdiction other than the United
States (including each State thereof and the District of Columbia) (a “Foreign Bank”) that
is entitled under the Code or any applicable treaty to an exemption from or reduction of
withholding tax with respect to payments hereunder shall deliver to the Company and the
Administrative Agent (in such number of copies as shall be reasonably requested by the
recipient) on or prior to the date on which such Foreign Bank becomes a Bank under this
Agreement (and from time to time thereafter upon the request of the Company or the
Administrative Agent, but only if such Foreign Bank is legally entitled to do so), whichever
of the following is applicable (I) executed originals of Internal Revenue Service Form
W-8BEN claiming eligibility for benefits of an income tax treaty to which the United States
is a party, (II) executed originals of Internal Revenue Service Form W-8ECI, (III) executed
originals of Internal Revenue Service Form W-8IMY and all required supporting documentation,
(IV) in the case of a Foreign Bank claiming the benefits of the exemption for portfolio
interest under section 881(c) of the Internal Revenue Code, (x) a certificate to the effect
that such Foreign Bank is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the
Code, (B) a “10 percent shareholder” of the Company within the meaning of section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code, and (y) executed originals of Internal Revenue Service Form
W-8BEN, or (V) executed originals of any other form prescribed by applicable laws as a basis
for claiming exemption from or a reduction in United States Federal withholding tax together
with such supplementary documentation as may be prescribed by applicable laws to permit the
Company or the Administrative Agent to determine the withholding or deduction required to be
made.

(iii) Each Bank shall deliver to the Company and the Administrative Agent such other
tax forms or other documents as shall be prescribed by applicable law, to the extent
applicable, (x) to demonstrate that payments to such Bank under any Transaction Document are
exempt from any United States withholding tax imposed pursuant to FATCA, and (y) to allow
the Company and Administrative Agent to determine the amount to deduct or withhold under
FATCA from a payment under any Transaction Document. Each Bank further agrees to complete
and to deliver to the Company and the Administrative Agent from time to time, so long as it
is eligible to do so, any successor or additional form required by the Internal Revenue
Service or reasonably requested by the Company in order to secure an exemption from, or
reduction in the rate of, withholding tax imposed pursuant to FATCA.

(c) Each Bank shall promptly notify the Company and the Administrative Agent of any change in
circumstances which would modify or render invalid any claimed exemption or reduction.

(d) If the form provided by a Bank at the time such Bank first becomes a party to this
Agreement indicates a United States interest withholding tax rate in excess of zero, withholding
tax at such rate shall be considered excluded from Taxes unless and until such Bank provides the
appropriate forms certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate only shall be considered excluded from Taxes for periods governed by such form.

7.2.6 For any period with respect to which a Bank has failed to provide the Company and the
Administrative Agent with the appropriate form, certificate or other document described in
Section 7.2.5 (other than as a result of a change in law occurring after the date such Bank becomes
a Bank under this Agreement), such Bank shall not be entitled to gross up under Section 7.2.1 with
respect to Taxes imposed by reason of such failure; provided, however, that should a Bank become
subject to Taxes because of its failure to deliver a form, certificate or other document required
hereunder, the Company shall take such steps at the Bank’s expense as the Bank shall reasonably
request to assist the Bank to recover such Taxes.

7.2.7 Any Bank claiming any additional amounts payable pursuant to this Section 7.2 agrees to
use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions)
to change the jurisdiction of its lending office if the making of such a change would avoid the
need for, or reduce the amount of, any such additional amounts that may thereafter accrue and would
not, in the reasonable judgment of such Bank, be otherwise disadvantageous to such Bank.

Section 7.3. Payments in Dollars. All payments to be made by the Company and the Debtors in
respect of a Purchased Receivable, whether of interest, principal, or otherwise, shall be made in
Dollars.

Section 7.4. Breakage Cost Indemnity. The Company agrees to indemnify each Bank on demand
against any loss or expense (including, but not limited to, any loss of the Applicable Margin or
any other loss or expense sustained or incurred or to be sustained or incurred by such Bank in
liquidating or employing deposits acquired or contracted for to effect or maintain its acquisition
of its Pro Rata Share of Purchased Receivables or any part thereof) which such Bank has sustained
or incurred as a consequence of (i) a purchase of Receivables not being made following the delivery
of any Purchase Request to such Bank by reason of the non-fulfillment of any of the conditions
precedent or otherwise or (ii) a repurchase of Purchased Receivables by the Company prior to the
end of the applicable Settlement Period.

Section 7.5. Business Days. Any amounts which but for this Section 7.5 would fall due for
payment under this Agreement on a day other than a Business Day shall be payable on the succeeding
Business Day unless such Business Day would fall into a new calendar month, in which case such
payment shall be due on the preceding Business Day. Interest calculations shall, where necessary,
be adjusted accordingly.

Section 7.6. Default Interest.

7.6.1 In the event that any amount payable by the Company hereunder or under any of the other
Transaction Documents (including, without limitation, Collections received by the Company and not
paid to the Administrative Agent for the benefit of the Banks when received) remains unpaid for
five (5) Business Days after the Administrative Agent, at the request of the Required Banks,
provides notice to the Company that such amounts are past due, the Banks shall charge, and the
Company shall pay, interest (“Default Interest”) from time to time on any such unpaid amount to the
Administrative Agent and/or the Banks during the period from (and including) the due date thereof,
but excluding the date payment is received by the Administrative Agent and/or the Banks, as
applicable, in full, at a rate equal to the aggregate of (i) the Prime Rate, and (ii) 3.05% per
annum.

7.6.2 Such Default Interest shall be payable ON DEMAND and, if no prior demand is made, on the
last Business Day of each calendar month. Each of the Administrative Agent and each Bank is
authorized to charge any such amount of Default Interest due to any account of the Company on the
books of the Administrative Agent or such Bank, as applicable, or any affiliate thereof and to
deduct any such amount from any amount which would otherwise be due from the Administrative Agent
or such Bank, as applicable, to the Company from time to time under this Agreement.

Section 7.7. Ratable Sharing. If any Bank shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any Purchased Receivable or other
obligations hereunder resulting in such Bank receiving payment of a proportion of the aggregate
amount payable under any Purchased Receivable to such Bank greater than its Pro Rata Share thereof
as provided herein, then the Bank receiving such greater proportion shall (a) notify the
Administrative Agent of such fact, and (b) purchase (for cash) participations in the other Banks’
Pro Rata Shares of the Purchased Receivable (not in excess of the applicable Purchase Price
thereof), or make such other adjustments as shall be equitable, so that the benefit of all such
payments shall be shared by the Banks ratably in accordance with the aggregate amount owing to
them; provided: (i) if any such participations are purchased and all or any portion of the payment
giving rise thereto is recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest; and (ii) the provisions of this Section
7.7 shall not be construed to apply to (A) any payment made by the Company pursuant to and in
accordance with the express terms of this Agreement (including the application of funds arising
from the existence of a Defaulting Bank), or (B) any payment obtained by a Bank as consideration
for the assignment of or sale of a participation in any of its Purchased Receivables to any
assignee or participant, other than to any Facility Party (as to which the provisions of this
Section shall apply). Each Facility Party consents to the foregoing and agrees, to the extent it
may effectively do so under applicable law, that any Bank acquiring a participation pursuant to the
foregoing arrangements may exercise against each Facility Party rights of setoff and counterclaim
with respect to such participation as fully as if such Bank were a direct creditor of each Facility
Party in the amount of such participation.

	 	 	 
	SECTION 8.CHANGES IN CIRCUMSTANCES.

	Section 8.1.

	 	Increased Costs.

8.1.1 The Company shall, within three Business Days of a demand by any Bank, pay the amount of
any Increased Costs incurred by such Bank as a result of (i) the introduction of or any change in
(or in the interpretation, administration or application of) any law or regulation or (ii)
compliance with any law or regulation made after the date of this Agreement.

8.1.2 In this Agreement “Increased Costs” means (i) a reduction in the rate of return for the
applicable Bank from the transactions contemplated in the Transaction Documents or on such Bank’s
overall capital; (ii) an additional or increased cost imposed by regulatory or administrative
action; (iii) a reduction of any amount due and payable under any Transaction Document or by the
Debtor under the Purchased Receivables, which in each case is incurred or suffered by such Bank to
the extent that it is attributable to such Bank having entered into any Transaction Document or
funding any purchase of Purchased Receivables or being exposed to any Debtor in respect of
Purchased Receivables and/or performing any of its obligations under any Transaction Document; or
(iv) costs associated with the implementation and enforcement of the Dodd-Frank Wall Street Reform
and Consumer Protection Act, including all requests, rules, guidelines or directives thereunder or
issued in connection therewith and all requests, rules, guidelines or directives promulgated by the
Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or
similar authority) or the United States or foreign regulatory authorities, in each case pursuant to
Basel III.

Section 8.2. Increased Cost Claims.

8.2.1 If any Bank intends to make a claim pursuant to Section 8.1, it shall notify the Company
of the event giving rise to such claim and provide a certificate confirming the amount of its
Increased Costs. Failure or delay on the part of any Bank to demand compensation pursuant to
Section 8.1 shall not constitute a waiver of such Bank’s right to demand such compensation;
provided, that the Company shall not be required to compensate a Bank pursuant to Section 8.1 for
any Increased Costs incurred more than 180 days prior to the date that such Bank notifies the
Company of the event giving rise to such claim and of such Bank’s intention to claim compensation
therefor.

Section 8.3. Exceptions.

8.3.1 Section 8.1 does not apply to the extent any Increased Cost is (i) attributable to a Tax
Deduction required by law to be made by the Company; (ii) compensated for by Section 7.2; (iii)
attributable to the breach by the applicable Bank of any law or regulation; or (iv) attributable to
increased costs as a result of Taxes that are not Indemnified Taxes.

8.3.2 In this Section 8.3 a “Tax Deduction” means a deduction or withholding for or on account
of Tax from a payment under a Transaction Document.

Section 8.4. Replacement of Banks. The Company shall be permitted to replace any Bank that
(a) requests reimbursement for amounts owing pursuant to Sections 7.4 or 8.1, (b) becomes a
Defaulting Bank or (c) does not consent to any proposed amendment, supplement, modification,
consent or waiver of any provision of this Agreement that requires the consent of each of the Banks
(so long as the consent of the Required Banks has been obtained), with a replacement financial
institution; provided, that (i) such replacement does not conflict with any requirement of Law,
(ii) no Termination Event shall have occurred and be continuing at the time of such replacement,
(iii) the replacement financial institution shall be satisfactory to the Administrative Agent, (iv)
the replaced Bank shall be obligated to make such replacement in accordance with the provisions of
Section 19.1, (v) the Company shall have paid to the replaced Bank all amounts then due and payable
from the Company to such replaced Bank under this Agreement, including amounts under Section 7.4 or
8.1, (vi) the Company shall have paid to the Administrative Agent the assignment fee (if any)
specified in Section 19.1, (vii) the replacement Bank shall have purchased the replaced Bank’s Pro
Rata Share of all Purchased Receivables then owned thereby, and (viii) any such replacement shall
not be deemed to be a waiver of any rights that the Company, the Administrative Agent or any other
Bank shall have against the replaced Bank.

	 	 	SECTION 9. FURTHER ASSURANCES.

Section 9.1. The Company agrees that from time to time, at its expense, it will promptly
execute and deliver all further instruments and documents, and take all further action, that the
Administrative Agent may reasonably request in order to perfect, protect or more fully evidence the
transactions contemplated hereby, or to enable the Administrative Agent or any Bank to exercise or
enforce any of its rights with respect to the Purchased Receivables. Without limiting the
generality of the foregoing, upon the request of the Administrative Agent, the Company will file
such financing or continuation statements, or amendments thereto or assignments thereof, or
termination statements in respect of any liens granted by the Company hereunder, and such other
instruments or notices as required under U.S. or local law, as may be necessary or appropriate to
perfect and preserve the interests of the Banks in the Purchased Receivables, free and clear of
Adverse Claims.

Section 9.2. The Company hereby authorizes the Administrative Agent or its designee to file
one or more financing or continuation statements, and amendments thereto and assignments thereof
and such other instruments or notices as referred to in Section 9.1, relative to all or any of the
Purchased Receivables now existing or hereafter arising in the name of the Company.

	 	 	SECTION 10. REPRESENTATIONS AND WARRANTIES.

Section 10.1. General Representations and Warranties. The Company hereby makes, and on each
purchase date and Settlement Date shall be deemed to make, the following representations and
warranties for the benefit of the Administrative Agent and each Bank as of the Closing Date and
each subsequent purchase date and Settlement Date with reference to the facts and circumstances
then existing (with the understanding that, with respect to any such representation or warranty
which relates to any Purchased Receivable, such representations and warranties are deemed to have
been made by the Company only as of the date of the purchase of such Purchased Receivable by the
Banks):

(a) It is duly organized and validly existing and registered under the laws of its
jurisdiction of organization and has the full right, power and authority to own its property and
assets and carry on its business as it is now being conducted, to enter into the Transaction
Documents, to perform and observe all of the matters and things provided for therein, including the
sale to the Banks of the Purchased Receivables and it has taken all necessary steps to duly
authorize the execution of this Agreement and the other Transaction Documents and the transactions
contemplated hereby.

(b) This Agreement and each other Transaction Document has been duly authorized by the Company
and executed and delivered by the proper officer(s) of the Company and constitutes or, as the case
may be, will, when made, constitute its legal, valid and binding obligations enforceable against
the Company in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights and by general equitable principles.

(c) The Company is the legal and beneficial owner of each Purchased Receivable sold by it.

(d) Each Purchased Receivable is generated from a sale to an Approved Debtor and shall be
freely assignable and shall constitute amounts due and payable by the Debtor on the relevant
Maturity Date (which shall not exceed 90 days from the earliest of (i) the date of sale or (ii)
dispatch of the goods by the Company) and each Contract, Purchased Receivable and Invoice complies
in all material respects with all applicable Laws.

(e) The making and performance of this Agreement and each Transaction Document and the
transactions contemplated hereby will not (as to the knowledge of any Responsible Officer of the
Company as to (i)) violate any provision of (i) any law, regulation, order or decree of any
governmental authority, agency or court, except to the extent such violation could not reasonably
be expected to have a Material Adverse Effect, (ii) its organizational documents or (iii) any
agreement, mortgage, indenture or other agreement to which it is a party or affecting the Company
or any of its assets or properties, except to the extent such violation could not reasonably be
expected to have a Material Adverse Effect, nor will such making and performance with or without
the passage of time or the giving of notice or other conditions, constitute an event of default or
termination event (howsoever described) under any of the foregoing which could reasonably be
expected to have a Material Adverse Effect or result in the creation, imposition or enforceability
of any Encumbrance over any of its assets, except in favor of the Banks or the Administrative Agent
for the benefit of the Banks.

(f) Each Invoice as issued in respect of each Purchased Receivable sold by it was properly
issued in accordance with the Contract and evidences that the amount specified in such Invoice will
be due and payable to the Company on and as of the purchase date without the need for any other
action, delivery of goods or performance of services by the Company with respect to the Original
Amount set forth in such Invoice.

(g) Each Contract and Receivable was originated in the ordinary course of the Company’s
business and in accordance with the Company’s credit and collection policy.

(h) The Company has performed all of its material obligations under the Contract relating to
Purchased Receivables and in particular and without limitation it has delivered all goods and
services as are due and required under such Contract with respect to the face amount set forth in
such Invoice.

(i) The obligations of the Debtor in respect of each Purchased Receivable have not, as of the
date of the Banks’ purchase thereof, been prepaid in whole or in part.

(j) As of the date of the sale of such Receivable to the Banks, the goods supplied under the
Contract giving rise thereto are not subject to any retention of title or equivalent clauses
exercisable by the Company or, to the knowledge of any Responsible Officer of the Company, any
third parties, which may adversely affect the interests of the Banks or the Administrative Agent
and at the time of sale by the Company to the Banks, no Purchased Receivable is subject to a volume
or other discount (except to the extent that any Trade Credit Amount has already been taken into
account in determining the Funded Amount of the Purchased Receivable as set forth in the Portfolio
Report) or subject to any claim by, or dispute with, the Debtor.

(k) As of the date of the sale of such Receivable to the Banks, each applicable Contract
giving rise thereto is in full force and effect, and the Company is not in breach thereof or in
default thereunder in a manner that would result in the Debtor being entitled to exercise any set
off rights or counterclaim or to withhold, extend or delay payment on any Purchased Receivable;
and, as of such date, there are no disputes, offsets, counterclaims or defenses of the Debtor known
to the Company with respect to any Purchased Receivable (if any Purchased Receivable is more than
60 days past due, other than as a result of a Debtor’s Financial Inability to Pay, it shall be
presumed that the Debtor has asserted a contractual claim or dispute).

(l) Under the laws of or applicable to the jurisdiction of its organization in force as at the
date hereof, the claims of the Banks or the Administrative Agent against the Company in relation to
each Purchased Receivable will rank at least pari passu with the claims of all its other unsecured
creditors save those whose claims are preferred solely by any bankruptcy, insolvency, liquidation
or other similar laws of general application.

(m) Assuming that each Bank complies with its obligation to deliver IRS forms pursuant to
Section 7.2.5, under the Code, the Company will not be required to make any deduction or
withholding from any payment it makes to the Banks or the Administrative Agent in respect of any
Purchased Receivable or the Contract giving rise thereto, and the Company has all consents and
licenses necessary to perform its obligations thereunder.

(n) As of the date of the sale of such Purchased Receivable to the Banks, neither the Company
nor, to the actual knowledge of any Responsible Officer of the Company, any Approved Debtor, is
insolvent nor has any insolvency or bankruptcy event occurred with respect to the Company or such
Debtor, nor is the Debtor past due under any payment obligation to the Company with respect to any
related Purchased Receivable nor has the Debtor rescheduled or extended the Maturity Date of any
such Purchased Receivable.

(o) The transactions contemplated by this Agreement are being consummated by the Company in
order to raise capital to carry out the Company’s ordinary business, with no contemplation of being
or becoming insolvent and with no intent to hinder, delay or defraud any of its present or future
creditors. By virtue of the Company’s right to receive any payment of the Purchase Price for each
Purchased Receivable as provided in Section 4 hereof, the Company has received reasonably
equivalent value for the Purchased Receivables sold by it.

(p) On the date of the sale of each Purchased Receivable to the Banks, the Banks shall acquire
a valid ownership interest or (through the Administrative Agent for the benefit of the Banks) a
first priority security interest in each Purchased Receivable (which security interest will be
perfected) free and clear of any Adverse Claim, and without any need on the part of the Company or
the Administrative Agent or any Bank to (i) notify the applicable Debtor or (ii) other than the UCC
financing statements required to be filed hereunder, file, register or record any Transaction
Document or the sale of such Receivable under the Laws applicable to the Company; and, upon
transfer of ownership of, or the grant of such security interest in, such Purchased Receivable from
the Company to the Banks, no financing statement or other similar instrument or other filing or
recordation covering any such Purchased Receivable or any interest therein, is on file in any
recording office except such as may be filed pursuant to this Agreement or except as to which a
release or disclaimer in form satisfactory to the Administrative Agent has been provided, or as to
which the Administrative Agent has consented.

(q) The Company’s jurisdiction of organization and “location” for purposes of the UCC, or
other relevant local law, is the State of Ohio (or such other location, notified to the
Administrative Agent in accordance with Section 11.1(l)). Except as described in Schedule 3, (i)
the Company has no trade names, fictitious names, assumed names or “doing business as” names and
(ii) the Company has not changed its jurisdiction of organization or location or its name, identity
or corporate structure within the four months prior to the date of this Agreement. The Company’s
federal taxpayer identification number or other registration number is as set forth in Schedule 3.

(r) All written information provided by the Company to the Administrative Agent and the Banks
with respect to the Purchased Receivables (including without limitation information relating to the
applicable Debtor’s past payment history and the Company’s commercial relationship with such
Debtor) taken as a whole, is true and accurate in all material respects as of the date supplied and
no written information has been given or withheld that would result in the written information
provided being untrue or misleading in any material respect.

(s) The representations made or deemed to be made by the Company in each Transaction Document
were correct in all material respects as of the date made (except for those representations and
warranties that are conditioned by materiality, which shall have been correct in all respects).

(t) With respect to the Company’s obligations hereunder, no consent, license, authorization,
registration, legalization, notification to, declaration with, approval or permit of, any
governmental authority, agency or instrumentality (including any central banking or other monetary
authority) is required by the Company in connection with its execution, delivery and performance,
and the validity or enforceability of the Company’s obligations under the Transaction Documents,
the Company’s sale of the Purchased Receivables, or the transactions contemplated thereby, other
than those that have been made or obtained and are in full force and effect and any filings to be
made with the United States Securities and Exchange Commission in connection with the transactions
contemplated by this Agreement.

(u) The obligation of the Company to remit payments received from the Debtors on the Purchased
Receivables in Dollars to the Banks in the United States, either directly or through the Blocked
Accounts as designated by the Administrative Agent, is legally valid under the laws applicable to
the Company and no foreign exchange registrations or approvals are necessary to effectuate such
Dollar payments.

	 	 	SECTION 11. COVENANTS.

Section 11.1. General Covenants. The Company hereby agrees, at all times prior to the Final
Collection Date:

(a) to duly perform its obligations under the relevant Contract in respect of each Purchased
Receivable, so that each such Receivable remains a legal, valid and binding obligation of the
Debtor enforceable against the Debtor in accordance with its terms, to inform the Administrative
Agent (and the Administrative Agent shall promptly notify the Banks upon such notification thereof)
of any material breach or default by the Company or the Debtor, within five Business Days after it
becomes aware of any such breach or default, and to take measures necessary and consistent with the
terms of the Contract to minimize or prevent any loss which may be incurred by the Banks in the
event of nonperformance of the Contract or nonpayment of an invoice by the Company or the Debtor
arising out of a dispute between the Company and the Debtor thereunder;

(b) without the prior consent in writing of the Banks, after the date of the Company’s sale of
the related Purchased Receivable, not to amend, modify, waive, supplement, terminate or revoke any
applicable Contract (or any term or condition thereof), including by way of any dealing or other
arrangement with the applicable Debtor, if the effect thereof could materially and adversely affect
the collectability thereof or the financial value or economic return to the Banks in respect
thereof; provided, for the avoidance of doubt, any amendment, modification, waiver,
supplement, termination or revocation with respect to any payment term of any Purchased Receivable
(including the Original Amount and the Maturity Date thereof) shall be deemed to materially and
adversely affect the collectability thereof and the financial value or economic return to the Banks
in respect thereof (other than any extension of the Maturity Date of any Purchased Receivable by
less than 30 days (so long as in no event shall such Maturity Date be extended beyond 90 days from
the date of purchase of such Purchased Receivable);

(c) not to create or suffer to exist any Adverse Claim over all or any of the Company’s
rights, title and interest in and to any Purchased Receivable or the Contract in respect of such
Purchased Receivable or any Blocked Account and not to, or purport to, assign, transfer or
otherwise deal with any of its rights in respect of any such Contract or any Purchased Receivable
other than in favor of the Banks (or the Administrative Agent for the benefit of the Banks), and
Company shall provide the Administrative Agent (for the benefit of the Banks) with a release or
disclaimer of any Adverse Claim purportedly created by any other Person over any Purchased
Receivable;

(d) to ensure that it has shipped all goods in respect of each Purchased Receivable in
conformity with all applicable laws and regulations (including without limitation import and export
laws and regulations), except to the extent failure to comply could not reasonably be expected to
have a Material Adverse Effect;

(e) to keep and maintain proper accounts and Sales Records and Invoices in connection with the
Purchased Receivables, and to provide to the Administrative Agent (for distribution to the Banks):

(i) details of all Purchased Receivables which are specified in the Portfolio Reports,
which Portfolio Reports will indicate as of the date thereof that the Purchased Receivables
have been sold by the Company to the Banks; and

(ii) a quarterly report regarding a receivables aging, delinquency, write-offs,
Receivables rolled forward and dilution report in the form attached as Schedule 4 as to the
Purchased Receivables, showing a loss to liquidation ratio (monthly write-offs over
collections), delinquency ratio (Receivables more than 90 days past due over closing
Receivables balance) and dilution ratio (monthly credit memos over sales) within 5 days of
the close of each month in a form satisfactory to the Administrative Agent, or as may
otherwise be approved by the Administrative Agent, which quarterly reports will indicate as
of the date thereof that the Purchased Receivables have been sold by the Company to the
Banks;

(f) to devote and assure that there is devoted to the servicing of Purchased Receivables at
least the same amount of time and attention and that there is exercised at least the same level of
skill, care and diligence in their servicing, as if it were servicing those receivables legally and
beneficially owned by it;

(g) following the occurrence of a Termination Event (or with respect to the Purchased
Receivables of an Approved Debtor, following the occurrence of a Debtor Default Event with respect
thereto), to comply with any reasonable directions, orders and instructions (including any
procedures for the administration and commencement and continuation of legal or other proceedings
against each applicable Debtor to enforce payment of the Purchased Receivables thereof) given by
the Administrative Agent and to take such action on the Banks’ behalf as the Administrative Agent
may request to procure the ordinary course collection of such accounts as directed by the
Administrative Agent;

(h) to use reasonable efforts to recover and enforce payment of any or all applicable
Purchased Receivables and, following the occurrence of a Termination Event (or with respect to the
Purchased Receivables of an Approved Debtor, following the occurrence of a Debtor Default Event
with respect thereto), provide such reasonably requested information as to assist the
Administrative Agent to recover and enforce payment of any or all such Purchased Receivables
(including at the request of the Administrative Agent joining in and being a party to any legal or
other action which the Administrative Agent has taken or wishes to take against the applicable
Debtor with the Administrative Agent being entitled to full control of such action);

(i) to take such action as may reasonably be required by applicable law to perfect and protect
or more fully evidence or implement the Banks’ rights under this Agreement and the transactions
contemplated hereby;

(j) to provide information and reports to the Administrative Agent (for distribution to the
Banks) as reasonably requested by the Administrative Agent or the Banks reasonably related to the
transactions contemplated by this Agreement, of which information and reports shall be complete and
accurate in all material respects, including without limitation, annual audited financial
statements for the Company and its consolidated subsidiaries within 120 days after the end of each
fiscal year or as soon as available if earlier and unaudited financial statements for the Company
and its consolidated subsidiaries within 60 days after the end of each fiscal quarter or as soon as
available if earlier; provided, if the Company files its consolidated financial statements
with the United States Securities and Exchange Commission, the Company shall be deemed to be in
compliance with this clause and shall not be required to deliver the foregoing financial statements
to the Administrative Agent;

(k) (i) at any time during regular business hours and upon reasonable prior notice, to permit
the Administrative Agent (on behalf of the Banks) or any of its agents or representatives, (A) to
examine and make copies of and abstracts from the Company’s records relating to Purchased
Receivables, including the Contracts and Sales Records, and (B) to visit the offices and properties
of the Company for the purpose of examining such records and to discuss matters relating to
Purchased Receivables or the Company’s performance hereunder with any of the officers or employees
of the Company having knowledge of such matters; and (ii) without limiting the provisions of clause
(i), from time to time on request of the Administrative Agent, permit certified public accountants
or other auditors reasonably acceptable to the Administrative Agent to conduct, at the Company’s
expense, a review of the Company’s books and records; provided that such examinations, visits and
reviews by the Administrative Agent or accountants shall occur no more than once a year during any
period of time that there is no default by the Company of its obligations hereunder; and

(l) to keep its jurisdiction of organization at the location referred to in Schedule 3 or,
upon 30 days’ prior written notice to the Administrative Agent, at such other location in a
jurisdiction where all action required by Section 9.1 shall have been completed; and not change its
name except upon like notice and after all action required by Section 9.1 shall have been
completed.

	 	 	SECTION 12. PARTIAL INVALIDITY

If at any time any provision of the Transaction Documents shall be adjudged by any court or
other competent tribunal to be illegal, invalid or unenforceable, the validity, legality, and
enforceability of the remaining provisions hereof shall not in any way be affected or impaired nor
shall the legality, validity or enforceability of such provisions under the law of any other
jurisdiction be in any way affected or impaired thereby and the parties hereto will use their best
efforts to revise the invalid provision so as to render it enforceable in accordance with the
intention expressed in this Agreement.

	 	 	SECTION 13. NO BANK LIABILITY FOR CONTRACT

The Company hereby acknowledges and agrees that neither any Bank nor the Administrative Agent
shall be in any way responsible for the performance of any Contract and neither any Bank nor the
Administrative Agent shall have any obligation to intervene in any dispute arising out of the
performance of any Contract. Any claim which the Company may have against any Debtor or any other
party, including any successors or assignees, and/or the failure of the Debtor to fulfill its
respective obligations under each Contract shall not affect the obligations of the Company to
perform its obligations and make payments under this Agreement and shall not be used as a defense
or as set-off, counterclaim or cross-complaint as against the performance or payment of any of its
obligations.

	 	 	SECTION 14. NOTICES, ADDRESSES, LANGUAGE

Section 14.1. Notices, Addresses. (a) All notices, requests and demands given or made under
the Transaction Documents shall be given or made in writing and unless otherwise stated shall be
made by telefax or letter using the address as specified below or such other address as the party
may designate to the other party:

	 	 	 

	 	 	 

	 	 	 
	To the Company or the Parent
	 	The Scotts Company LLC

	Attention:
	 	Treasurer

	Street Address:
	 	14111 Scottslawn Road

Marysville, Ohio 43041

	Facsimile:
	 	937-578-5754

	To the Administrative Agent
	 	Crédit Agricole Corporate & Investment Bank

	Attention:
	 	Export & Trade Finance

	Street Address:
	 	1301 Avenue of the Americas

New York, NY 10019

	Email:
	 	thibault.berger@ca-cib.com

with a copy to etf-us@ca-cib.com

	To Each Bank
	 	As notified in writing to the Administrative

Agent

(b) All notices, requests and demands shall be deemed to have been duly given or made when
dispatched by telefax when the confirmation showing the completed transmission was received or, if
mailed via a reputable international courier, when it has been left at the relevant address or five
(5) Business Days after being delivered to such reputable international courier, in an envelope
addressed to the applicable person at that address and to the attention of the person(s) set forth
above.

(c) Each party hereto shall promptly inform the other of any changes in their respective
addresses, facsimile numbers and/or email addresses specified above.

Section 14.2. English Language. Each communication and document made or delivered by one
party to another pursuant to this Agreement shall be in the English language or accompanied by a
translation thereof into English (certified by an officer of the person making or delivering the
same) as being a true and accurate translation thereof.

	 	 	SECTION 15. FEES, COSTS AND INDEMNITY.

Section 15.1. Fees. The Company shall pay to the Administrative Agent on or before the
Closing Date such fees as are set forth in the Fee Letter.

Section 15.2. Costs and Expenses. All reasonable and documented, out-of-pocket costs, charges
and expenses, including reasonable fees and expenses of legal counsel, audit and due diligence
expenses in relation to the preparation and execution of the Transaction Documents and each
Purchased Receivable by the Administrative Agent and the Banks shall be paid by the Company to the
Administrative Agent and the Banks, as applicable, within five (5) Business Days of presentation of
a statement of accounts whether or not any Receivables are purchased hereunder.

Section 15.3. Duties and Taxes. Without duplication of any obligation under Section 7.2, all
Other Taxes (excluding Taxes referred to in clauses (i) through (iv), inclusive of Section 7.2.1),
shall be paid by the Company, it being understood and agreed that each of the Administrative Agent
and each Bank shall be entitled but not obliged to pay any such Other Taxes (whether or not they
are its primary responsibility), and the Company shall on demand indemnify each of the
Administrative Agent and each Bank against those Other Taxes and against any costs and expenses so
incurred by it in discharging them.

Section 15.4. Indemnity. The Company agrees to indemnify, defend and save harmless each of
the Administrative Agent and each Bank (including each of its branches, affiliates, officers,
directors, employees or other agents, the “Indemnified Party”), other than for such Indemnified
Party’s own gross negligence or willful misconduct, forthwith on demand, from and against any and
all related losses, claims, damages, liabilities, costs and expenses (including, without
limitation, all reasonable attorneys’ fees and expenses, expenses incurred by their respective
credit recovery groups (or any successors thereto) and expenses of settlement, litigation or
preparation therefor) which any Indemnified Party may incur or which may be asserted against any
Indemnified Party by any person (including, without limitation, any Debtor or any other person
whether on its own behalf or derivatively on behalf of the Company) arising from or incurred in
connection with any of the following events:

(i) the failure to vest in the Banks (or through the Administrative Agent for the
benefit of the Banks) a first priority perfected ownership interest or security interest in
each Purchased Receivable, free and clear of any Adverse Claim;

(ii) the commingling by the Company of Collections of Purchased Receivables at any time
with other funds of the Company or other Person, provided that each of the Administrative
Agent and each Bank hereby acknowledges the lien on the Collections deposited in the Blocked
Accounts of Receivables not sold under this Agreement of JPMorgan Chase Bank, N.A., as
Administration Agent under the terms of the Credit Agreement, or the failure of the Company
to direct any Debtor to make payment on Purchased Receivables to the Blocked Account;

(iii) any representation or warranty made by the Company pursuant to this Agreement is
inaccurate, incorrect or untrue in any material respect;

(iv) any failure of the Company to perform any of its duties or obligations hereunder;

(v) any failure to promptly execute when reasonably requested to do so by the
Administrative Agent, of any document or instrument confirming the sale to the Banks under
applicable law with respect to the Purchased Receivables;

(vi) (1) any claim or dispute resulting from the sale of the merchandise or services
related to any Purchased Receivable or the furnishing or failure to furnish such merchandise
or services including, without limitation, any discount (other than a discount already taken
into account in determining the Purchase Price of a Purchased Receivable as set forth in a
Portfolio Report), (2) any adjustment, offset, withholding tax, deduction, counterclaim,
warranty issue or refusal of an Approved Debtor to pay not arising from the Financial
Inability to Pay of such Debtor; or (3) any products liability claim arising out of or in
connection with merchandise or services that are the subject of any Purchased Receivable (if
any Receivable is more than 60 days past due, other than as a result of the Financial
Inability to Pay of the Debtor, it shall be presumed that such Debtor has asserted a
contractual claim or dispute);

(vii) any investigation, litigation or proceeding related to any act or omission by the
Company with respect to this Agreement or the transactions contemplated hereby except to the
extent that such investigation, litigation or proceeding arises due to the Bank’s gross
negligence or willful misconduct;

(viii) any material defect in authenticity or any material discrepancy between the
records at the Company in respect of the Purchased Receivables or the documents issued by
the Company supporting the Purchased Receivables and the information provided to the
Administrative Agent and the Banks by the Company or any failure by the Company to provide
the Administrative Agent and the Banks with information regarding the Purchased Receivables;

(ix) any claim or dispute arising out of or in connection with the Monsanto Agreement;
and

(x) any and all reasonable and documented out-of-pocket costs and expenses, including
reasonable legal fees and court costs, incurred by the Administrative Agent and the Banks in
enforcing the obligations of the Company under this Agreement and the other Transaction
Documents;

provided that nothing in this Section 15.4 shall be deemed to provide indemnity to the
Administrative Agent and the Banks for credit losses resulting from the Financial Inability to Pay
of any Debtor.

Section 15.5. Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no party hereto shall assert, and each party hereto hereby waives, any claim
against any Indemnified Party, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as
a result of, this Agreement, any other Transaction Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby. No Indemnified Party shall
be liable for any damages arising from the use by unintended recipients of any information or other
materials distributed by it through telecommunications, electronic or other information
transmission systems in connection with this Agreement, the other Transaction Documents or the
transactions contemplated hereby or thereby, unless such information or materials are obtained by
any unintended recipient as a result of such Indemnified Party’s gross negligence or willful
misconduct.

	 	 	SECTION 16. CALCULATIONS AND CERTIFICATE.

Section 16.1. Accounts. Absent manifest error, the entries made in the accounts maintained by
the Administrative Agent are presumptive evidence of the matters to which they relate.

Section 16.2. Certificates and Determinations. Any certification or determination by the
Administrative Agent of a rate or amount under any Transaction Document is, in the absence of
manifest error, conclusive evidence of the matters to which it relates.

	 	 	SECTION 17. SET-OFF.

The Company hereby authorizes each Bank to apply any credit balance (in whatever currency
denominated) on any account of the Company with such Bank or any affiliate of such Bank in
satisfaction of any sum due and payable by the Company pursuant to the terms of this Agreement.
For this purpose each Bank is authorized to purchase at its spot rate of exchange with the moneys
standing to the credit of any such account Dollars as may be necessary to effect such application.

	 	 	SECTION 18. TERMINATION.

Section 18.1. The following events or occurrences shall constitute Termination Events:

(a) the Company or the Parent shall fail to pay (i) any amount due by it pursuant to Section
4.5(e) or (ii) within five (5) calendar days of the date when due, any other amount then due and
payable under this Agreement, including, without limitation, amounts payable by the Company in its
capacity as servicer or under the indemnity for breaches of any warranties or covenants contained
in this Agreement;

(b) the Company or the Parent is in default (i) beyond the period of grace, if any, in the
payment of any indebtedness exceeding $75,000,000, or (ii) under any agreement or instrument
relating to any such indebtedness the result of which would allow the holder thereof to accelerate
the payment of such indebtedness prior to its stated maturity;

(c) the Company or the Parent (i) shall generally fail to pay its debts as they become due,
(ii) has commenced against it any bankruptcy or insolvency proceeding which is not dismissed within
60 days or commences any bankruptcy or insolvency proceeding, (iii) has any receiver, trustee,
liquidator or other similar person appointed for itself or a substantial portion of its property or
(iv) takes any action to effectuate or authorize any of the foregoing;

(d) any Adverse Claim shall occur as to any of the Purchased Receivables or proceeds thereof,
which results in Collections thereof being reduced by an amount in excess of 10% of the Funded
Amount thereof;

(e) (i) the Company or Parent, as applicable, breaches any covenant set forth in Section 4
(other than as provided in Section 18.1(a)(i)), 5.1, 6.1, 9.1, 15.4 or 22(a) of this Agreement and
such breach shall continue for fifteen (15) calendar days after a Responsible Officer of the
Company has knowledge thereof, (ii) the Company breaches any covenant set forth in Section 11.1(c),
(g), (i), (k), (l), or (m) of this Agreement and such breach shall continue for thirty (30)
calendar days after a Responsible Officer of the Company has knowledge thereof or (iii) the Company
breaches any covenant set forth in Section 11.1(h) of this Agreement or any similar covenant which
requires, or upon the request of the Bank would require, the Company to file or join in any lawsuit
against, or take any other legal action against, any Approved Debtor and such breach shall continue
for thirty (30) calendar days after a Responsible Officer of the Company has knowledge thereof, or
(iv) the Company or Parent, as applicable, breaches any other covenants set forth in this Agreement
or any other Transaction Document and such breach shall continue for thirty (30) calendar days
after a Responsible Officer of the Company or Parent, as applicable, has knowledge thereof;

(f) the failure by the Parent to own 100% of the outstanding voting interests of the Company;

(g) default in the due observance or performance by the Parent of the covenant set forth in
Section 22(b) of this Agreement; and

(h) the final termination of any blocked account agreement relating to a Blocked Account
without the Administrative Agent’s prior written consent.

Section 18.2. Upon the occurrence of any Termination Event, the Administrative Agent may, and
at the request of the Required Banks shall, immediately terminate any agreement the Banks had made
at such time to purchase additional Receivables and any authority the Banks had given the Company
to purchase Replacement Receivables; provided, that upon the occurrence of any event (without any
requirement for the passage of time or the giving of notice) described in Section 18.1(c), the
Termination Date shall automatically occur and any agreement made by the Banks to purchase
additional Receivables and any authority the Banks have given to the Company to purchase
Replacement Receivables shall automatically terminate. Notwithstanding any other provision hereof,
this Agreement shall continue in full force and effect with respect to Purchased Receivables
already purchased and all other rights, benefits and entitlements of the Administrative Agent and
the Banks expressed or implied shall continue after such termination until the Final Collection
Date.

Section 18.3. Upon the termination of this Agreement, the Administrative Agent, for the
benefit of the Banks, will have, in addition to its rights and remedies hereunder and under the
other Transaction Documents, all other rights and remedies under applicable laws and otherwise,
which rights and remedies will be cumulative.

Section 18.4. Without limiting the rights of the Administrative Agent and the Banks, on the
Termination Date, and on each day thereafter, the Company, subject to the terms and conditions of
this Agreement, will hold or deposit in trust in the Blocked Accounts, for the benefit of the
Banks, the Collections of Purchased Receivables received by the Company on each such day and the
Administrative Agent, at the direction of the Banks, may withdraw all such amounts from the Blocked
Account upon giving the notice required under the relevant blocked account agreement. After the
Administrative Agent has delivered any notice of termination under Section 18.1, the Company shall
not exercise any right of set-off or compensation with respect to any sum owing to the
Administrative Agent or any Bank.

Section 18.5. (a) On the Termination Date, and at all times thereafter, all Purchased
Receivables described in Section 4.6, inclusive of those Purchased Receivables which are identified
as Purchased Receivables in the Portfolio Report delivered by the Company, and which the Banks have
funded the Purchase Price thereof as of the Company’s close of business on the day immediately
preceding the Termination Date, shall, subject to verification and approval by the Administrative
Agent and this Section 18.5, be the Total Purchased Receivables (the “Total Purchased Receivables”)
for all purposes of this Agreement.

(b) On the Termination Date other than one designated by the Administrative Agent in
accordance with clause (iii) of the definition of Termination Date (“Bank Termination”), unless a
Termination Event occurs following such Bank Termination, in which case the terms of this paragraph
shall apply, and upon the identification of the Total Purchased Receivables, the Company shall
immediately pay to the Administrative Agent for the benefit of the Banks the sum of the Agreed Base
Value of the Total Purchased Receivables (other than Defaulted Receivables), the Termination
Interest and applicable Dilutions which have not otherwise been taken into account, in each case as
determined by the Administrative Agent absent manifest error, and the Banks shall sell, set over,
assign, transfer and convey to the Company, without recourse, all of its right, title and interest
in, to and under such Total Purchased Receivables.

(c) In the event of a Bank Termination, beginning on the Termination Date, no Bank shall
purchase Purchased Receivables or Replacement Receivables except to the extent provided in Section
4.5(e)(ii)(x), the Company shall cease to purchase Replacement Receivables from Collections but
shall continue to purchase Receivables pursuant to Section 4.5(e)(i), and the terms of this
Agreement will continue in effect until the Purchased Receivables other than Defaulted Receivables
then held by the Banks have been paid or become Defaulted Receivables, or a Termination Event
occurs.

(d) If the Company fails to pay such amount, the list of the Total Purchased Receivables
(other than Defaulted Receivables) shall be amended to include such amount of additional
Receivables from the Approved Debtors as is necessary to make the Funded Amount of the Total
Purchased Receivables (other than Defaulted Receivables) equal to the aggregate Purchase Price
thereof as at the Termination Date.

(e) Without limiting the foregoing, in the event that a Debtor Default Event shall occur with
respect to any Approved Debtor, the Administrative Agent and the Banks shall have the rights and
remedies as set forth in this Section 18.5 with respect to the Purchased Receivables of such
Approved Debtor, and (i) references in this Section 18.5 to the “Total Purchased Receivables” shall
be deemed to be to all of the Purchased Receivables of such Approved Debtor, and (ii) references in
this Section 18.5 to the “Termination Date” shall be deemed to be to the determination date of the
occurrence of such Debtor Default Event.

	 	 	SECTION 19. MISCELLANEOUS

Section 19.1. Assignments and Transfers. (a) Each Bank may at any time assign, transfer or
participate (including by way of novation) any of its rights and obligations under the Transaction
Documents to another bank or financial institution; provided that, with respect to any assignment
(but not, for the avoidance of doubt, in the case of any participation, for which neither notice
to, nor the consent of, any party shall be required), such Bank shall notify the Administrative
Agent and the Company in writing at least fifteen days prior to such assignment and (x) obtain the
Administrative Agent’s written consent thereto, which consent shall not be unreasonably withheld or
delayed, and (y) obtain the Company’s written consent thereto, which consent shall not be
unreasonably withheld or delayed, and shall not be required at any time a Termination Event has
occurred and is continuing and has not otherwise been waived or cured. So long as no Termination
Event has occurred and is continuing and has not otherwise been waived or cured, if the Company so
elects, the Company shall have fifteen days from the date of such notice to repurchase any
outstanding Purchased Receivables from an assigning Bank at the Purchase Price as set forth in
Section 21.1 with respect to any amounts outstanding from each Debtor in relation to each Purchased
Receivable, plus any other amounts outstanding from the Company to such Bank under this Agreement,
including breakage costs under Section 7.4. The parties to each assignment shall execute and
deliver to the Administrative Agent an assignment and assumption agreement in form and substance
reasonably satisfactory to the Administrative Agent, together with all forms, certificates or other
evidence each assignee is required to provide pursuant to Section 7.2.5 and a processing and
recordation fee of $5,000.

(b) Notwithstanding anything herein to the contrary, in the event that the Company shall
purchase any Bank’s rights and obligations under the Transaction Documents in accordance with
Section 19.1(a), the Company shall have no right whatsoever so long as it holds such Bank’s rights
and obligations:

(i) to vote with respect to any amendment, modification, waiver, consent or other such
action with respect to any of the terms of this Agreement or any other Transaction Document
and it shall be deemed to have voted its interest as a Bank without discretion in the same
proportion as the allocation of voting with respect to such matter by the Banks who are not
the Company; provided, notwithstanding the foregoing, (1) the Company shall be permitted to
vote if such amendment, modification, waiver, consent or other such action
disproportionately affects the Company in its capacity as a Bank as compared to other Banks,
and (2) no amendment, modification, waiver, consent or other action shall deprive the
Company of its share of any payments which the Banks are entitled to share on a Pro Rata
Basis hereunder or change any date for payment or rate of interest;

(ii) to attend (or receive any notice of) any meeting, conference call or
correspondence with the Administrative Agent or any Bank or receive any information from the
Administrative Agent or any other Bank (other than Purchase Requests and other
administrative notices in respect of its Purchased Receivables as required to be delivered
to the Banks hereunder and other than as may be required to enforce its rights under Section
19.1(b)(i)); or

(iii) to make or bring any claim, in its capacity as a Bank, against the Administrative
Agent or any other Bank with respect to the duties and obligations of such Persons under the
Transaction Documents (other than any such claim made in good faith and arising solely from
the bad faith, gross negligence or willful misconduct of Administrative Agent or any Bank,
as the case may be).

(c) The Company may not assign or otherwise transfer its rights, benefits or obligations or
any of them under the Transaction Documents without the prior written consent of the Administrative
Agent and each Bank.

(d) Subject to the foregoing, this Agreement shall be binding on and shall inure to the
benefit of each party hereto and its successors and assigns.

Section 19.2. Waivers, Remedies Cumulative. No failure to exercise, nor any delay in
exercising, on the part of the Administrative Agent or any Bank, any right or remedy under the
Transaction Documents shall operate as a waiver thereof, nor shall any single or partial exercise
of any right or remedy prevent any further or other exercise thereof or the exercise of any other
right or remedy. The rights and remedies herein provided are cumulative and not exclusive of any
rights or remedies provided by law.

Section 19.3. Accounting Treatment. The Company agrees and acknowledges that it is a
sophisticated party in relation to this Agreement and that it has taken independent legal and
accounting advice in relation to the accounting treatment to be applied to this Agreement. It is
agreed that the Company has not relied on any representation of the Administrative Agent or any
Bank in this regard.

Section 19.4. Third Party Rights. Other than as approved in this Agreement, no person not a
party to this Agreement shall be deemed a third party beneficiary hereof.

Section 19.5. Counterparts. Each Transaction Document may be executed in any number of
counterparts, and by the different parties thereto on separate counterparts; each such counterpart
shall be deemed an original and all of such counterparts taken together shall be deemed to
constitute one and the same instrument. A facsimile or electronic copy of an executed counterpart
of this Agreement shall be effective as an original for all purposes.

Section 19.6. Entire Agreement. This Agreement constitutes the entire Agreement between the
parties hereto in relation to the Agreement and supersedes all previous proposals, agreements and
other written and oral communications in relation thereto.

Section 19.7. Exclusion of Liability. In no event shall the Administrative Agent or any Bank
be liable for any loss of profits, business, data or information or for any remote, incidental,
indirect, special or consequential damages.

Section 19.8. Continuing Obligations. The Company shall remain liable to perform all
obligations assumed by it under each Contract, and neither the Administrative Agent nor any Bank
shall be under any obligation of any kind whatsoever thereunder or be under any liability
whatsoever in the event of any failure by the Company to perform its obligations thereunder.

Section 19.9. USA Patriot Act; OFAC and Anti-Terrorism.

(a) Each Bank and the Administrative Agent (for itself and not on behalf of any Bank) hereby
notifies the Company that pursuant to the requirements of the USA PATRIOT Improvement and
Reauthorization Act, Title III of Pub. L. 109-177 (signed into law March 9, 2009) (the “Act”), it
is required to obtain, verify, and record information that identifies the Company, which
information includes the name and address of the Company and other information that will allow such
Bank or the Administrative Agent, as applicable, to identify the Company in accordance with the
Act.

(b) Neither the Company, nor the Parent, nor, to the best of their knowledge, any Persons
holding any legal or beneficial interest whatsoever in the Company or the Parent (whether directly
or indirectly) (i) are named on the list of Specially Designated Nationals and Blocked Persons
maintained by OFAC or any list of Persons issued by OFAC pursuant to Executive Order 13224 –
Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or
Support Terrorism, as in effect on the date hereof, or any similar list issued by OFAC
(collectively, the “OFAC Lists”); (ii) are Persons determined by the Secretary of the Treasury of
the United States to be owned by, controlled by, acting for or on behalf of, providing assistance,
support, sponsorship, or services of any kind to, or otherwise associated with any of the Persons
referred to or described in the OFAC Lists; or (iii) have conducted business with or engaged in any
transaction with any Person identified in (i) or (ii) above.

(c) (i) Neither the Company nor the Parent will knowingly conduct business with or engage in
any transaction with any Person named on any of the OFAC Lists or any Persons determined by the
Secretary of the Treasury of the United States pursuant to Executive Order 13224 to be owned by,
controlled by, acting for or on behalf of, providing assistance, support, sponsorship, or services
of any kind to, or otherwise associated with any of the Persons referred to or described in the
OFAC Lists; (ii) if the Company or the Parent obtains actual knowledge or receives any written
notice that it or any Person holding any legal or beneficial interest whatsoever therein (whether
directly or indirectly) is named on any of the OFAC Lists (such occurrence, an “OFAC Violation”),
the Company or the Parent will immediately (A) give written notice to the Administrative Agent and
the Banks of such OFAC Violation, and (B) comply with all applicable laws with respect to such OFAC
Violation (regardless of whether the party included on any of the OFAC Lists is located within the
jurisdiction of the United States of America), including, without limitation, the Economic and
Trade Sanctions and Anti-Terrorism Laws. The Company and the Parent hereby authorize and consent
to the Administrative Agent and each Bank taking any and all steps they deem necessary, in its sole
discretion, to comply with all applicable laws with respect to any such OFAC Violation, including,
without limitation, the requirements of the Economic and Trade Sanctions and Anti-Terrorism Laws
(including the “freezing” and/or “blocking” of assets); and (iii) the Company and the Parent will
comply at all times with the requirements of all Economic and Trade Sanctions and Anti-Terrorism
Laws, and will, upon the Administrative Agent’s or any Bank’s request from time to time during the
term of this Agreement, deliver a certification confirming its compliance with the covenants set
forth in this Section 19.9.

Section 19.10. Amendments. No amendment, modification, waiver or supplement of any provision
of this Agreement or consent to any departure by any Facility Party therefrom shall be effective
unless in a writing signed by all of the Banks or, where permitted under this Agreement, the
Required Banks, and then such amendment, waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided no amendment or waiver of Section
24 or any other provision of this Agreement which affects the rights or obligations of the
Administrative Agent shall be effective unless signed by the Administrative Agent; provided further
any Defaulting Bank’s right to approve or disapprove any amendment, modification, waiver,
supplement or consent with respect to this Agreement shall be restricted as set forth in the
definition of Required Banks.

	 	 	SECTION 20. GOVERNING LAW

Section 20.1. This Agreement shall be governed by and construed in accordance with the laws of
the State of New York without regard to the principles of conflict of laws thereof (other than
Section 5-1401 of the New York General Obligations Law).

Section 20.2. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT, MAY BE BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK
COUNTY, NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK;
PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY RECEIVABLES OR OTHER PROPERTY MAY BE
BROUGHT, AT THE APPLICABLE BANK’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH RECEIVABLES
OR OTHER PROPERTY MAY BE FOUND. THE COMPANY AND THE PARENT HEREBY EXPRESSLY AND IRREVOCABLY SUBMIT
TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, NEW YORK AND
OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY
SUCH LITIGATION. THE COMPANY AND THE PARENT FURTHER IRREVOCABLY CONSENT TO THE SERVICE OF PROCESS
BY REGISTERED MAIL, POSTAGE PREPAID, TO THE ADDRESS SPECIFIED IN SECTION 14.1 OF THIS AGREEMENT (OR
SUCH OTHER ADDRESS AS THEY SHALL HAVE SPECIFIED IN WRITING TO THE ADMINISTRATIVE AGENT AS THEIR
ADDRESS FOR NOTICES HEREUNDER) OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. THE
COMPANY, THE PARENT, THE ADMINISTRATIVE AGENT AND EACH BANK EXPRESSLY AND IRREVOCABLY WAIVE, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH LITIGATION
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

Section 20.3. TO THE EXTENT PERMITTED BY LAW, THE COMPANY, THE PARENT, THE ADMINISTRATIVE
AGENT AND EACH BANK HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO
ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR ANY APPLICATION, INSTRUMENT, DOCUMENT,
AMENDMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREE THAT
ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

	 	 	SECTION 21. OPTIONAL REPURCHASE

Section 21.1. In the event that (i) the Administrative Agent gives notice to the Company of
its intention to replace the Company as servicer and agent, (ii) all of the Banks inform the
Company that they will not purchase any other Receivables due to a Termination Event, (iii) a
Purchased Receivable is past due, or (iv) any bankruptcy or insolvency (however evidenced) of the
Company or the Parent shall occur, the Company may, at its option, repurchase all of the
outstanding Purchased Receivables from the Banks for an amount equal to the Agreed Base Value of
such Purchased Receivables (or so much of it as was paid by the Banks to the Company and remains
unpaid), less an amount equal to the product of such Agreed Base Value and Discount, where the
numerator included in the calculation of Discount is the number of days from the repurchase date to
the next following Settlement Date, and if such Purchased Receivable is being repurchased by the
Company after the Maturity Date of such Purchased Receivable, together with interest thereon at the
interest rate specified in Section 7.6 from the due date to the date of the Company’s payment in
full thereof, and any other amounts then payable by the Company hereunder, including, breakage
costs under Section 7.4, whereupon such amount shall become due and payable from the Company to the
Banks upon the occurrence of the applicable event described in the foregoing going clauses (i),
(ii), (iii) or (iv), as applicable, and shall be paid into the Payment Account.

Section 21.2. In addition to the foregoing, the Company shall have the right at any time
before or after a Termination Event, at its option and upon written notice to the Administrative
Agent (for distribution to the Banks), to repurchase all or a portion of the outstanding Purchased
Receivables from the Banks for an amount equal to the Agreed Base Value of such Purchased
Receivables (or so much of it as was paid by the Banks to the Company and remains unpaid), less an
amount equal to the product of such Agreed Base Value and Discount, where the numerator included in
the calculation of Discount is the number of days from the repurchase date to the next following
Settlement Date, and if such Purchased Receivable is being repurchased by the Company after the
Maturity Date of such Purchased Receivable, together with interest thereon at the interest rate
specified in Section 7.6 from the relevant Maturity Date to the date of the Company’s payment in
full thereof, and any other amounts then payable by the Company hereunder, including, breakage
costs under Section 7.4, whereupon such amount shall become due and payable from the Company to the
Banks on the date specified in such notice and shall be paid into the Payment Account.

	 	 	SECTION 22. GUARANTY; PARENT COVENANT.

(a) Parent is the owner of the Company. Parent hereby unconditionally and irrevocably
guarantees to the Beneficiaries the due and punctual payment, performance and observance by the
Company of all of the terms, covenants, conditions, agreements, representations, warranties,
indemnities and undertakings on the part of the Company to be performed or observed under this
Agreement, including, without limitation, the punctual payment when due of all obligations of the
Company now or hereafter existing under this Agreement, whether for indemnification payments, fees,
expenses, repurchase obligations or otherwise (all of the foregoing being collectively referred to
as the “Obligations”). In the event that the Company shall fail in any manner whatsoever to
perform or observe any of the Obligations when the same shall be required to be performed or
observed under this Agreement (subject to any applicable cure periods), then upon the written
demand of the Administrative Agent, Parent shall perform, cause to be performed or make payment to
allow such Obligations to be performed. For the avoidance of doubt, Obligations do not include,
and the Parent is not hereby guaranteeing payment of any amounts due by the Debtors.

The Parent’s liability under this Section 22(a) shall be irrevocable, absolute, independent
and unconditional and shall not be affected by any circumstance which constitutes a legal or
equitable discharge of a guarantor or surety other than payment and performance in full of the
Obligations, and, without limiting the foregoing, shall be unconditional irrespective of (i) any
lack of enforceability of the Obligations, and (ii) any law, regulation or rights with respect
thereto. Neither Parent’s obligations hereunder nor any remedy for the enforcement thereof shall
be impaired, modified, changed, released or limited in any manner whatsoever by an impairment,
modification, change, release or limitation of the liability of the Company or by reason of the
bankruptcy or insolvency of the Company. Parent waives any and all notices of the creation,
renewal, extension or accrual of or increase in any of the Obligations and notice of or proof of
reliance by the Administrative Agent or any Bank upon this Section 22(a) or acceptance of this
Section 22(a). This Agreement shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon this Section 22(a). All
dealings between the Company and Parent, on the one hand, and the Beneficiaries, on the other hand,
likewise shall be conclusively presumed to have been had or consummated in reliance upon this
Section 22(a).

To the extent permitted by law, Parent hereby waives any and all presentments, demands,
notices, and protests against Parent, and any requirement that the Administrative Agent or any Bank
commence or exhaust any remedies against the Company or any collateral securing the Obligations.
This guarantee is a guarantee of payment and performance and not of collection and shall remain in
full force and effect until payment in full of the Obligations. The Obligations of Parent under
this Section 22(a) does rank and will rank pari passu in priority of payment with all other
unsecured and unsubordinated obligations for borrowed money of Parent.

All payments under this Section 22(a) by Parent shall be made by Parent on the date when due
and shall be made in Dollars and in immediately available and freely transferable funds to the
Payment Account.

(b) From and after the date hereof and so long as this Agreement is in effect, except to the
extent compliance in any case or cases is waived in writing by the Administrative Agent, the Parent
agrees that it will, for the benefit of the Administrative agent and the Banks, comply with, abide
by, and be restricted by all the agreements, covenants, obligations and undertakings of the Parent
contained in the provisions of Section 6.10 of the Credit Agreement, inclusive, regardless of
whether any indebtedness is now or hereafter remains outstanding thereunder, or the Credit
Agreement shall have terminated, all of which provisions, together with the related definitions,
exhibits and ancillary provisions, are incorporated herein by reference, mutatis mutandis, and made
a part hereof to the same extent and with the same force and effect as if the same had been herein
set forth in their entirety, and will be deemed to continue in effect for the benefit of the
Beneficiaries irrespective of whether the Credit Agreement remains in effect, and without regard or
giving effect to any amendment or modification of such provisions or any waiver of compliance
therewith, no such amendment, modification or waiver to in any manner constitute an amendment,
modification or waiver of the provisions thereof as incorporated herein unless consented to in
writing by the Administrative Agent; provided (i) any amendment, modification or supplement
of the terms of the Credit Agreement in accordance with Section 1.2(b) thereof shall be deemed to
be effective with respect to this Section 22(b) without further action by any party to this
Agreement, and (ii) that said provisions for purposes of the incorporation described herein shall
be amended in the following respects:

(i) the term “Borrower” appearing in said provisions shall mean and refer to the
Parent;

(ii) the term “Lenders” or “Administrative Agent” appearing in said provisions shall
mean and refer to the Beneficiaries as defined in this Agreement;

(iii) the term “Agreement” appearing in said provisions shall mean and refer to this
Agreement; and

(iv) the term “herein” or “hereof” appearing in said provisions shall mean and refer to
this Agreement.

Other than as hereinabove amended, any terms contained in the provisions of the Credit Agreement
incorporated herein which are defined in the Credit Agreement shall have the same meaning herein as
in the Credit Agreement.

	 	 	SECTION 23. CONFIDENTIALITY.

Each party hereto agrees to hold the Transaction Documents and all non-public information
received by it in connection therewith from any other party hereto or its agents or representatives
in confidence and agrees not to provide any Person with copies of any Transaction Document or such
non-public information other than to (i) any officers, directors, members, managers, employees or
outside accountants, auditors or attorneys thereof, (ii) any prospective or actual assignee or
participant which (in each case) has signed a confidentiality agreement containing provisions
substantively identical to this Section 23 or has agreed to be subject to the terms of this Section
23, and (iii) Governmental Authorities with appropriate jurisdiction (including filings required
under securities laws). Notwithstanding the above stated obligations, provided that the other
parties hereto are, to the extent permitted by law, given notice of the intended disclosure or use,
the parties hereto will not be liable for disclosure or use of such information which such Person
can establish by tangible evidence: (i) was required by law, including pursuant to a valid subpoena
or other legal process, (ii) was in such Person’s possession or known to such Person prior to
receipt or (iii) is or becomes known to the public through disclosure in a printed publication
(without breach of any of such Person’s obligations hereunder).

SECTION 24. ADMINISTRATIVE AGENT

Section 24.1. Appointment and Authority. Each of the Banks hereby irrevocably appoints CA-CIB
to act on its behalf as the Administrative Agent hereunder and under the other Transaction
Documents and authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof,
together with such actions and powers as are reasonably incidental thereto. Except as expressly
set forth in Sections 24.6(a) and 24.6(b), the provisions of this Section are solely for the
benefit of the Administrative Agent and the Banks, and neither the Company nor any other Facility
Party shall have rights as a third-party beneficiary of any of such provisions. It is understood
and agreed that the use of the term “agent” herein or in any other Transaction Documents (or any
other similar term) with reference to the Administrative Agent is not intended to connote any
fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable
law. Instead such term is used as a matter of market custom, and is intended to create or reflect
only an administrative relationship between contracting parties.

Section 24.2. Rights as a Bank. The Person serving as the Administrative Agent hereunder
shall have the same rights and powers in its capacity as a Bank as any other Bank and may exercise
the same as though it were not the Administrative Agent, and the term “Bank” or “Banks” shall,
unless otherwise expressly indicated or unless the context otherwise requires, include the Person
serving as the Administrative Agent hereunder in its individual capacity. Such Person and its
Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor
or in any other advisory capacity for, and generally engage in any kind of business with, the
Parent, the Company or any Subsidiary or other Affiliate thereof as if such Person were not the
Administrative Agent hereunder and without any duty to account therefor to the Banks.

Section 24.3. Exculpatory Provisions.

(a) The Administrative Agent shall not have any duties or obligations except those expressly
set forth herein and in the other Transaction Documents, and its duties hereunder shall be
administrative in nature. Without limiting the generality of the foregoing, the Administrative
Agent shall not:

(i) be subject to any fiduciary or other implied duties, regardless of whether a
Termination Event has occurred and is continuing;

(ii) have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other
Transaction Documents that the Administrative Agent is required to exercise as directed in
writing by the Required Banks (or such other number or percentage of the Banks as shall be
expressly provided for herein or in the other Transaction Documents); provided, the
Administrative Agent shall not be required to take any action that, in its opinion or the
opinion of its counsel, may expose the Administrative Agent to liability or that is contrary
to any Transaction Document or applicable law, including for the avoidance of doubt any
action that may be in violation of the automatic stay under any Bankruptcy Law or that may
effect a forfeiture, modification or termination of property of a Defaulting Bank in
violation of any Bankruptcy Law; and

(iii) except as expressly set forth herein and in the other Transaction Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any information
relating to the Company or any of its Affiliates that is communicated to or obtained by the
Person serving as the Administrative Agent or any of its Affiliates in any capacity.

(b) The Administrative Agent shall not be liable for any action taken or not taken by it (i)
with the consent or at the request of the Required Banks, or (ii) in the absence of its own gross
negligence or willful misconduct as determined by a court of competent jurisdiction by final and
nonappealable judgment. The Administrative Agent shall not be deemed to have knowledge of any
Termination Event unless and until notice describing such Termination Event is given to the
Administrative Agent in writing by the Company or a Bank.

(c) The Administrative Agent shall not be responsible for or have any duty to ascertain or
inquire into (i) any statement, warranty or representation made in or in connection with this
Agreement or any other Transaction Document, (ii) the contents of any certificate, report or other
document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein or the occurrence of any Termination Event, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Transaction Document or
any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in
Section 3 or elsewhere herein, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

Section 24.4. Reliance by Administrative Agent. The Administrative Agent shall be entitled to
rely upon, and shall not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to
have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a purchase hereunder, that by its terms
must be fulfilled to the satisfaction of a Bank, the Administrative Agent may presume that such
condition is satisfactory to such Bank unless the Administrative Agent shall have received notice
to the contrary from such Bank prior to the making of such purchase. The Administrative Agent may
consult with legal counsel (who may be counsel for the Company), independent accountants and other
experts selected by it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

Section 24.5. Delegation of Duties. The Administrative Agent may perform any and all of its
duties and exercise its rights and powers hereunder or under any other Transaction Document by or
through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent
and any such sub agent may perform any and all of its duties and exercise its rights and powers by
or through their respective Related Parties. The exculpatory provisions of this Section shall
apply to any such sub agent and to the Related Parties of the Administrative Agent and any such
sub-agent, and shall apply to their respective activities in connection with the syndication of the
Purchased Receivables and each Bank’s Stated Amount as well as activities as the Administrative
Agent. The Administrative Agent shall not be responsible for the negligence or misconduct of any
sub-agents except to the extent that a court of competent jurisdiction determines in a final and
non-appealable judgment that the Administrative Agent acted with gross negligence or willful
misconduct in the selection of such sub-agents.

Section 24.6. Resignation of the Administrative Agent.

(a) The Administrative Agent may at any time give notice of its resignation to the Banks and
the Company. Upon receipt of any such notice of resignation, the Required Banks shall have the
right, with the prior written consent of the Company (provided, (x) no such consent of the Company
shall be required while a Termination Event exists and (y) such consent shall not be unreasonably
withheld, delayed or conditioned), to appoint a successor. If no such successor shall have been so
appointed by the Required Banks and shall have accepted such appointment within thirty days after
the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be
agreed by the Required Banks) (the “Resignation Effective Date”), then the retiring Administrative
Agent may (but shall not be obligated to), on behalf of the Banks, appoint a successor
Administrative Agent meeting the qualifications set forth above. Whether or not a successor has
been appointed, such resignation shall become effective in accordance with such notice on the
Resignation Effective Date.

(b) If the Person serving as the Administrative Agent is a Defaulting Bank pursuant to clause
(iv) of the definition thereof, the Required Banks may, to the extent permitted by applicable law,
by notice in writing to the Company and such Person remove such Person as the Administrative Agent
and, with the consent of the Company (provided, (x) no such consent of the Company shall be
required while a Termination Event exists and (y) such consent shall not be unreasonably withheld,
delayed or conditioned), appoint a successor. If no such successor shall have been so appointed by
the Required Banks and shall have accepted such appointment within thirty days (or such earlier day
as shall be agreed by the Required Banks) (the “Removal Effective Date”), then such removal shall
nonetheless become effective in accordance with such notice on the Removal Effective Date.

(c) With effect from the Resignation Effective Date or the Removal Effective Date (as
applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties
and obligations hereunder and under the other Transaction Documents, (except that in the case of
any collateral held by the Administrative Agent on behalf of the Beneficiaries, the retiring or
removed the Administrative Agent shall continue to hold such collateral until such time as a
successor the Administrative Agent is appointed) and (ii) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent shall instead be made
by or to each Bank directly, until such time, if any, as the Required Banks appoint a successor
Administrative Agent as provided for above. Upon the acceptance of a successor’s appointment as
the Administrative Agent hereunder, such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring or removed Administrative Agent, and the
retiring or removed Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Transaction Documents. The fees payable by the Company to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed
between the Company and such successor. After the retiring or removed Administrative Agent’s
resignation or removal hereunder and under the other Transaction Documents, the provisions of this
Section and Sections 15.2 and 15.4 shall continue in effect for the benefit of such retiring or
removed Administrative Agent, its sub agents and their respective Related Parties in respect of any
actions taken or omitted to be taken by any of them while the retiring or removed Administrative
Agent was acting as the Administrative Agent.

Section 24.7. Non-Reliance on Administrative Agent and Other Banks. Each Bank acknowledges
that it has, independently and without reliance upon the Administrative Agent or any other Bank or
any of their Related Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Bank
also acknowledges that it will, independently and without reliance upon the Administrative Agent or
any other Bank or any of their Related Parties and based on such documents and information as it
shall from time to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any other Transaction Document or any related
agreement or any document furnished hereunder or thereunder.

Section 24.8. No Other Duties, Etc. Anything herein to the contrary notwithstanding, the Lead
Arranger shall have no power, duty or responsibility under this Agreement or any of the other
Transaction Documents, except in its capacity, as applicable, as the Administrative Agent or a Bank
hereunder.

Section 24.9. Administrative Agent May File Proofs of Claim. In case of the pendency of any
proceeding under any Bankruptcy Law or any other judicial proceeding relative to any Facility
Party, the Administrative Agent (irrespective of whether the principal of any Purchased Receivable
shall then be due and payable as herein expressed or by declaration or otherwise and irrespective
of whether the Administrative Agent shall have made any demand on the Company) shall be entitled
and empowered (but not obligated) by intervention in such proceeding or otherwise:

(a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Purchased Receivables and all obligations hereunder that are owing and
unpaid and to file such other documents as may be necessary or advisable in order to have the
claims of the Banks and the Administrative Agent allowed in such judicial proceeding,
provided, the Banks shall retain all rights to cast votes in any such proceeding; and

(b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Bank to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Banks, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent under Sections 15.2 and
15.4.

Section 24.10. No Enforcement, Etc. Anything contained in any of the Transaction Documents to
the contrary notwithstanding, each Facility Party, the Administrative Agent and each Bank hereby
agree that (a) no Bank shall have any right individually to realize upon any of the Purchased
Receivables or to enforce the guaranty of the Parent as set forth in Section 22, it being
understood and agreed that all powers, rights and remedies hereunder and under any of the
Transaction Documents may be exercised solely by the Administrative Agent for the benefit of the
Beneficiaries in accordance with the terms hereof and thereof and all powers, rights and remedies
hereunder may be exercised solely by the Administrative Agent for the benefit of the Beneficiaries
in accordance with the terms thereof, and (b) in the event of a foreclosure or similar enforcement
action by the Administrative Agent on any of the Purchased Receivables pursuant to a public or
private sale or other disposition (including pursuant to section 363(k), section 1129(b)(2)(a)(ii)
or otherwise of the Bankruptcy Code), the Administrative Agent (or any Bank, except with respect to
a “credit bid” pursuant to section 363(k), section 1129(b)(2)(a)(ii) or otherwise of the Bankruptcy
Code,) may be the purchaser or licensor of any or all of such Purchased Receivables at any such
sale or other disposition and the Administrative Agent, as agent for and representative of
Beneficiaries (but not any Bank or Banks in its or their respective individual capacities) shall be
entitled, upon instructions from Required Banks, for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the Purchased Receivables sold at any
such sale or disposition, to use and apply any of the Obligations as a credit on account of the
purchase price for any Purchased Receivables payable by the Administrative Agent at such sale or
other disposition. The Administrative Agent shall not be responsible for or have a duty to
ascertain or inquire into any representation or warranty regarding the existence, value or
collectability of the Purchased Receivables, the existence, priority or perfection of the
Administrative Agent’s Lien thereon, or any certificate prepared by any Facility Party in
connection therewith, and the Administrative Agent shall not be responsible or liable to the Banks
for any failure to monitor or maintain any portion of the Purchased Receivables.

Section 24.11. Withholding Taxes. To the extent required by any applicable Law, the
Administrative Agent may withhold from any payment to any Bank an amount equivalent to any
applicable withholding tax. If the Internal Revenue Service or any other Governmental Authority
asserts a claim that the Administrative Agent did not properly withhold tax from amounts paid to or
for the account of any Bank because the appropriate form was not delivered, was not properly
executed or was invalid or because such Bank failed to notify the Administrative Agent of a change
in circumstance which rendered the exemption from, or reduction of, withholding tax ineffective or
for any other reason, such Bank shall indemnify the Administrative Agent fully for all amounts
paid, directly or indirectly, by the Administrative Agent as tax or otherwise, including any
penalties or interest and together with all expenses (including legal expenses, allocated internal
costs and out-of-pocket expenses) incurred.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

3

IN WITNESS WHEREOF, the parties have executed this Agreement by their undersigned, duly authorized
officers on the date first above written:

  

THE SCOTTS COMPANY LLC

By: /s/ Mark J. Weaver

	 	 	Title: Vice President and Treasurer

THE SCOTTS MIRACLE-GRO COMPANY

By: /s/ Mark J. Weaver

Title: Vice President and Corporate

Treasurer

4

  

CRÉDIT AGRICOLE CORPORATE & INVESTMENT BANK,

as Administrative Agent and a Bank

By: /s/ Thibault Berger

Title: Vice President 

By: /s/ Laure Duvernay

Title: Vice President

Payment Account: Crédit Agricole Corporate &
Investment Bank

New York, NY; ABA 026-008-073

A/C No. 01-88179-2145-00, A/C Name:
Syndication Account

Bank’s Stated Amount: $100,000,000

THE BANK OF NOVA SCOTIA, as a Bank

By: /s/ Christopher Usas

Title: Director

Bank’s Stated Amount: $75,000,000

SUNTRUST BANK, as a Bank

By: /s/ Michael Maza

Title: Senior Vice President

Bank’s Stated Amount: $75,000,000

MIZUHO CORPORATE BANK, LTD, as a Bank

By: /s/ Robert Gallagher

Title: Authorized Signatory

Bank’s Stated Amount: $75,000,000

5

SCHEDULE 1

PURCHASE REQUEST

  

      , 20      

Crédit Agricole Corporate & Investment Bank,

as Administrative Agent

1301 Avenue of the Americas

New York, NY 10019

Attn: Export & Trade Finance

With a copy to Thibault Berger

Re: REQUEST FOR PURCHASE

Ladies and Gentlemen:

We refer to the Master Accounts Receivable Purchase Agreement among The Scotts Company LLC,
The Scotts Miracle-Gro Company, the Banks party thereto, and Crédit Agricole Corporate & Investment
Bank, as administrative agent, dated as of September 21, 2011 (as amended through the date hereof,
the “Purchase Agreement”). Terms defined in the Purchase Agreement shall have the same meaning
herein as defined in such Purchase Agreement.

The undersigned Company hereby requests that the Banks purchase on       , 20      , (the
“Purchase Date”), the Purchased Receivables set forth on Schedule I attached hereto, in accordance
with, and subject to, the terms and provisions of the Purchase Agreement, with the understanding
that no Bank is committed to making such purchase. The undersigned Company hereby makes the
representations and warranties set forth in Section 10 of the Purchase Agreement for the benefit of
the Administrative Agent and the Banks, as of the Purchase Date, and further state that such
representations and warranties are true and correct as of such Purchase Date.

Executed and delivered by the undersigned Company as of the date first above written.

THE SCOTTS COMPANY LLC

  

By:

Title:

6

SCHEDULE 2

CONDITIONS PRECEDENT

The Administrative Agent and the Banks shall have received each of the following, in form and
substance satisfactory to each of them:

(a) Executed counterparts of this Agreement and the other Transaction Documents.

(b) Certified copies of the Company’s and the Parent’s organizational documents, together with
certified copies of the resolutions of the Company’s and Parent’s board of directors or members
authorizing this Agreement and the Administrative Agent and the Banks having received executed
copies of this Agreement and the other Transaction Documents and authorizing a person or persons to
sign or otherwise attest the due execution of those documents including any subsequent notices and
acknowledgements to be executed or delivered pursuant to this Agreement, the other Transaction
Documents and any other documents to be executed or delivered by the Company pursuant hereto or
thereto together with an officer incumbency and specimen signature certificate, all in form
satisfactory to the Administrative Agent and the Banks.

(c) Legal opinions of outside special counsel to the Company and the Parent relating to the
enforceability of the Transaction Documents, and the perfection of the security interests created
hereby, and of outside special counsel or internal counsel to the Company and the Parent relating
to the power and authority of Company and the Parent to enter into the Transaction Documents and
its performance thereunder, in each case in form and in substance satisfactory to the
Administrative Agent and the Banks.

(d) Blocked Account Agreements signed by the Company in form satisfactory to the
Administrative Agent and the Banks.

(e) Acknowledgement copies of such UCC financing statements or other filings as are required
under Section 9.1, such lien search reports as the Administrative Agent and the Banks shall deem
advisable with respect to the Company, and releases of any Adverse Claim on the Purchased
Receivables shown in such reports.

(f) An acknowledgment from JPMorgan Chase Bank, N.A., as agent under the existing working
capital credit facility agreement (the “Credit Agreement”), that all Purchased Receivables shall be
deemed to be “Sold Receivables” under the Credit Agreement and that this Agreement constitutes a
“Receivables Purchase Agreement” under the Credit Agreement.

7

SCHEDULE 3

UCC DETAILS SCHEDULE

UCC INFORMATION

(a) Name: THE SCOTTS COMPANY LLC

(b) Chief Executive Office: 14111 Scottslawn Road

Marysville, Ohio 43041

(c) State of Organization: Ohio

(d) Organizational ID No.: 1503259

(e) Tradenames: None

(f) Changes in Location, Name and None

Corporate Organization:

8

SCHEDULE 4

FORM OF PORTFOLIO REPORT

9

SCHEDULE 5

APPROVED DEBTORS

	 	 	 

	 	 	 

	 	 	 	 	 	 	 
	Approved Debtor	 	Applicable Margin	 	Debtor Sublimit
	Lowe’s Companies, Inc.

	 	 	1.05	%	 	$250 million
	Wal-Mart Stores Inc.

	 	 	1.05	%	 	$120 million

10turv_s1exh42.htm

 

EXHIBIT  4.2

Series A Convertible Participating Notes

 

THE SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT

SERIES A SECURED CONVERTIBLE PARTICIPATING PROMISSORY NOTE

	
$___________

	
Denver, Colorado

	  	
_____________ ______, 2011

Two Rivers Farms F-1, LLC, a Colorado limited liability company (“Borrower”), FOR VALUE RECEIVED, hereby promises to pay to the order of ______________________________ or registered assigns (the “Holder”), at the offices of the Borrower at 2000 S Colorado Blvd, Annex Ste. 200, Denver CO 80222 the principal amount of ________________ ($_________) in lawful money of the United States of America on March 31, 2014 (the “Maturity Date”).  The unpaid principal balance of this Note shall bear interest at the rate of five percent (5%) per annum.  Interest shall be payable in arrears on the fifteenth day of February of each year (an “Interest Payment Date”) beginning on February 15, 2012.  Such interest payment shall be for the period ending on the December 31, immediately preceding such Interest Payment Date.

Upon payment of all amounts due to Holder hereunder this Note shall be physically surrendered to Borrower for cancellation.

In addition to the interest payable hereunder, the Holder shall be entitled to receive, the amount, if any, of the Farming Income for each of the three years ended December 31, 2011, December 31, 2012 and December 31, 2013 multiplied by a fraction, the numerator of which shall be the principal amount of this Note outstanding as of such December 31st and the denominator of which shall be $2,000,000.  Such amount, if any, shall be due and payable on the 15th day of March, following each such December 31st.

Any amount of principal or interest which is not paid when due shall bear interest at the rate of eight percent (8%) per annum from the due date thereof until the same is paid in full.

If this Note, or any payment hereunder, falls due on a Saturday, Sunday or a Colorado public holiday, payment shall be made on the next succeeding business day and such additional time shall be included in the computation of any interest payable hereunder.

This Note may be prepaid in whole or in part by Borrower upon thirty days’ prior written notice to the Holder.

This Note shall be secured pursuant to the terms of that certain Security Agreement by and between the Borrower and the Holder,  that certain Guaranty of Farm, and that certain Deed of Trust, each dated as of ________, 2011. [FIRST CLOSING DATE FOR ALL OF THE]

This Note is one of a series of promissory notes of like tenor issued or to be issued by the Borrower (all such notes being hereinafter referred to individually as a “Series A Note” and collectively the “Series A Notes”), is referred to in, a Subscription Agreement by and between the Borrower and the Holder (the “Purchase Agreement”) and is secured by certain collateral as referred to in a Security Agreement and a Deed of Trust executed in connection therewith.  Capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Purchase Agreement.

The following terms shall apply to this Note:

Section 1.                      Definitions.  For the purposes hereof, in addition to the terms defined elsewhere in this Note: (a) capitalized terms not otherwise defined herein have the meanings given to such terms in the Purchase Agreement, and (b) the following terms shall have the following meanings:

“Common Stock” means the common stock, par value $0.001 per share, of the Parent and stock of any other class into which such shares may hereafter have been reclassified or changed.

“Conversion Date” shall have the meaning set forth in Section 4(a) hereof.

“Conversion Price” shall have the meaning set forth in Section 4(b).

“Conversion Shares” means the shares of Common Stock issuable upon conversion of this Note, in accordance with the terms hereof.

“Event of Default” shall have the meaning set forth in Section 5.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Farming Income” means the annual amount payable by Farms to Borrower pursuant to the Farming Lease.

“Farming Lease” means the lease dated as of ______, _____, 2011 by and between Borrower and Two Rivers Farms, LLC, (“Farms”) a wholly owned subsidiary of Parent, a copy of which is annexed hereto as Exhibit A.

“Fundamental Transaction” shall have the meaning set forth in Section 5(e)(iii) hereof.

“Parent” means Two Rivers Water Company, a Colorado corporation and the indirect owner of 100% of the equity interests in Borrower.

“Person” means a corporation, an association, a partnership, organization, a business, an individual, a government or political subdivision thereof or a governmental agency.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Trading Day” means a day on which the Common Stock is traded on a Trading Market.

“Trading Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the Nasdaq Global Market, the American Stock Exchange, the New York Stock Exchange, the Nasdaq Capital Market, the OTC Bulletin Board, or the Pink Sheets.

	
Section 2.

	
Transfers.  This Note has been issued subject to certain investment representations of the original Holder set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal and state securities laws and regulations.

Section 3.                      Conversion.

(a)           Voluntary Conversion.  At any time after the date here until this Note is no longer outstanding, the principal and accrued and unpaid interest of this Note shall be convertible into shares of Common Stock at the option of the Holder, in whole or in part at any time and from time to time.  The Holder shall effect conversions by delivering to the Borrower the form of Notice of Conversion attached hereto as Annex A (a “Notice of Conversion”), specifying therein the amount of this Note to be converted and the date on which such conversion is to be effected (a “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is provided hereunder. To effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire principal amount of this Note plus all accrued and unpaid interest thereon has been so converted, in which event the Holder shall physically surrender this Note to the Borrower. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note in an amount equal to the principal amount so converted. The Holder, the Borrower and the Parent shall maintain records showing the principal amount converted and the date of such conversions.  The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof. However, at the Borrower’s request, the Holder shall surrender this Note to the Borrower within five (5) days following such request so that a new Series A Note reflecting the correct principal amount may be issued to Holder.

(b)           Conversion Price.  The conversion price (subject to adjustment herein) shall be $2.50 per share of Common Stock.

(c)           Mechanics of Conversion.

i.           Conversion Shares Issuable Upon Conversion. The number of shares of Common Stock issuable upon a conversion hereunder shall be determined by the quotient obtained by dividing (x) the amount of this Note (whether principal or accrued but unpaid interest) to be converted by (y) the Conversion Price.

ii.           Delivery of Certificate Upon Conversion.  Not later than fifteen Trading Days after any Conversion Date, the Borrower will deliver to the Holder a certificate or certificates representing the Conversion Shares representing the number of shares of Common Stock being acquired upon the conversion of this Note.

iii.           Fractional Shares.  Upon a conversion hereunder the Parent shall not be required to issue stock certificates representing fractions of shares of the Common Stock, but may if otherwise permitted, make a cash payment in respect of any final fraction of a share based on the market price of a share of Common Stock on the Conversion Date at such time. If the Parent elects not, or is unable, to make such a cash payment, the Holder shall be entitled to receive, in lieu of the final fraction of a share, one whole share of Common Stock.

iv.           Transfer Taxes.  The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without charge to the Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, provided that the Parent shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this Note and the Parent shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Parent the amount of such tax or shall have established to the satisfaction of the Parent that such tax has been paid.

(d)           Mandatory Conversion.

i.           Conversion Conditions.  If at any time prior to the Maturity Date (x) the closing price of a share of Common Stock as quoted on the primary Trading Market for such Common Stock is at least 200% of the Conversion Price then in effect for twenty consecutive Trading Days (the “Measuring Period”) and (y) the average daily trading volume on such Trading Market is at least 250,000 shares per day during such Measuring Period (the “Conversion Conditions”), then and in such event, the entire outstanding principal and accrued and unpaid interest on this Note shall automatically and without further action by the Borrower, the Parent or the Holder be converted into shares of Common Stock as of the Trading Day following the day on which the Conversion Conditions have been met.

ii.           Notice.  The Borrower or the Parent shall notify the Holder in the manner for notices provided in the Purchase Agreement, that the Conversion Conditions have been met within five Trading Days of the occurrence thereof and that the Holder should surrender this Note in exchange for Conversion Shares.  Not later than fifteen Trading Days after the date on which this Note is so surrendered, Parent will deliver to the Holder a certificate or certificates representing the number of shares of Common Stock being acquired upon such conversion.

Section 4.                      Certain Adjustments.

(a)           Stock Dividends and Stock Splits.  If the Parent, at any time after the date hereof: (A) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock in shares of Common Stock, (B) subdivide outstanding shares of Common Stock into a larger number of shares, or (C) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock  outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

(b)           Notice to Holder.

i.           Adjustment to Conversion Price.  Whenever the Conversion Price is adjusted pursuant to any of this Section 4, the Parent shall promptly mail to the Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

ii.           Notice to Allow Conversion by Holder.  If (A) the Parent shall declare a dividend (or any other distribution) on its Common Stock; (B) the Parent shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; (C) the approval of any stockholders of the Parent shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Parent is a party, any sale or transfer of all or substantially all of the assets of the Parent, of any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property; or the Parent shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Parent; then, in each case, the Parent shall cause to be mailed to the Holder at the last address as it shall appear upon the books and records of the Parent, at least 10 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided, that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.  The Holder is entitled to convert this Notes during the 10-day period commencing the date of such notice to the effective date of the event triggering such notice.

iii.           Fundamental Transaction.  If, at any time while this Note is outstanding, (A) the Parent effects any merger or consolidation of the Parent with or into another Person, (B) the Parent effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by the Parent or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Parent effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental Transaction”), then upon any subsequent conversion of this Note, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion absent such Fundamental Transaction, the same kind and amount of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of one share of Common Stock (the “Alternate Consideration”). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Parent shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration, If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Parent or surviving entity in such Fundamental Transaction shall issue to the Holder a new note consistent with the foregoing provisions and evidencing the Holder’s right to convert such note into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (b) and insuring that this Note (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

Section 5.                      Default.

UPON THE OCCURRENCE OF AN EVENT OF DEFAULT THEN, AND IN ANY SUCH EVENT, THE HOLDER, BY WRITTEN NOTICE TO THE BORROWER, MAY DECLARE THE ENTIRE BALANCE OF THE UNPAID PRINCIPAL AND ANY ACCRUED INTEREST ON THIS NOTE TO BE DUE, WHEREUPON THE SAME AND ANY OTHER AMOUNTS DUE HEREUNDER SHALL IMMEDIATELY BECOME DUE AND PAYABLE WITHOUT PRESENTATION, DEMAND, PROTEST OR OTHER NOTICE OF ANY KIND, ALL OF WHICH ARE HEREBY EXPRESSLY WAIVED BY THE BORROWER.

An “Event of Default” shall have occurred if:

 

(a) The Borrower fails to make any payment of principal or interest hereunder when due under this Note or any other Series A Note, which failure has not been cured within 60 days following such failure.

 

(b) The Borrower files a petition to take advantage of any insolvency act; makes an assignment for the benefit of its creditors; commences a proceeding for the appointment of a receiver, trustee, liquidator or conservator of itself of a whole or any substantial part of its property; files a petition or answer seeking reorganization or arrangement or similar relief under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any state.

 

(c) A court of competent jurisdiction enters an order, judgment or decree appointing a custodian, receiver, trustee, liquidator or conservator of the Borrower or the Parent or of the whole or any substantial part of its properties, or approves a petition filed against the Borrower or the Parent seeking reorganization or arrangement or similar relief under the federal bankruptcy laws or any other applicable law or statute of the Untied States of America or any state; or if, under the provisions of any other law for the relief or aid of the Borrower or the Parent, a court of competent jurisdiction assumes custody or control of the Borrower or the Parent or of the whole or any substantial part of its properties; or there is commenced against the Borrower or the Parent any proceeding for any of the foregoing relief and such proceeding or petition remains undismissed for a period of 30 days; or if the Borrower or the Parent by any act indicates its consent to or approval of any such proceeding or petition.

 

Section 6.                      Miscellaneous.

(a)           Waiver.

(i)           Holder shall not be deemed, by any act or omission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by Holder and then only to the extent specifically set forth in such writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. No delay or omission of Holder to exercise any right, whether before or after a default hereunder, shall impair any such right or shall be construed to be a waiver of any right or default, and the acceptance at any time by Holder of any past-due amount shall not be deemed to be a waiver of the right to require prompt payment when due of any other amounts then or thereafter due and payable.

(ii)           Notwithstanding the foregoing, any provision of this Note may be waived or amended upon the written consent of the Borrower and the written consent of the Holders of Series A Notes representing at least 662/3% of the then outstanding aggregate principal amount of the Series A Notes; provided however, that any waiver of an Event of Default occurring on account of the Borrower’s failure to make any payment of principal or interest shall not be effective against any Holder who has not agreed to such waiver in writing.

(b)           Attorney’s Fees.                                It is expressly agreed that if this Note is referred to an attorney or if suit is brought to collect or interpret this Note or any part hereof or to enforce or protect any rights conferred upon Holder by this Note or any other document evidencing or securing this Note, then the Borrower promises and agrees to pay all costs, including reasonable attorneys’ fees, incurred by Holder.

(c)           Governing Law.                                This Note shall be governed by and enforced pursuant to the laws of the State of Colorado.  The parties to this Note hereby irrevocably submit to the exclusive jurisdiction of any federal or state court located within the State of Colorado, County of Denver, over any dispute relating to the terms of this Note and each party hereby irrevocably agrees that all claims in respect of such dispute or any suit, action or proceeding related thereto may be heard and determined in such courts.  The parties hereby irrevocably waive, to the fullest extent permitted by applicable law, any objection that they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute.  Each of the parties hereto agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

TWO RIVERS FARMS F-1, LLC

By:           ____________________________

	
Two Rivers Water Company hereby agrees to be bound by the provisions of Sections 3 and 4 of the Note.

 

By:________________________________

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