Document:

ES-10.2

 

EXHIBIT 10.2

AUSTRIAN FORM

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES

THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.

THE SCOTTS MIRACLE-GRO COMPANY

2006 LONG-TERM INCENTIVE PLAN

AWARD AGREEMENT FOR EMPLOYEES

[FORM OF AWARD] AWARDED TO [GRANTEE’S NAME] ON [GRANT DATE]

The Scotts Miracle-Gro Company (“Company”) and its shareholders believe that their business
interests are best served by ensuring that you have an opportunity to share in the Company’s
business success. To this end, the Company adopted and its shareholders approved The Scotts
Miracle-Gro Company 2006 Long-Term Incentive Plan (“Plan”) through which key employees, like you,
may acquire (or share in the appreciation of) common shares of the Company.

We cannot guarantee that the value of your Award (or the value of the common shares you acquire
through an Award) will increase. This is because the value of the Company’s common shares is
affected by many factors. However, the Company believes that your efforts contribute to the value
of the Company’s common shares and that the Plan (and the Awards made through the Plan) is an
appropriate means of sharing with you the value of your contribution to the Company’s business
success.

This Award Agreement describes the type of Award that you have been granted and the conditions that
must be met before you may receive the value associated with your Award. To ensure you fully
understand these terms and conditions, you should:

	 	•	 	Read the Plan and the Plan’s Prospectus, as supplemented, carefully to ensure you
understand how the Plan works;
	 
	 	•	 	Read this Award Agreement carefully to ensure you understand the nature of your Award
and what you must do to earn it; and
	 
	 	•	 	Contact [Contact’s Name at Company], [Contact’s Title] at [Telephone Number] if you have
any questions about your Award. Or, you may send a written inquiry to the address shown
below:

The Scotts Miracle-Gro Company

Attention: [Contact’s Name at Company]

[Contact’s Title]

14111 Scottslawn Road

Marysville, Ohio 43041

You must return a signed copy of this Award Agreement no later than [___Days Post Grant Date] to:

[Third Party Administrator]

Attention: [TPA Contact’s Name]

[Contact’s Address]

[TPA Telephone Number]

 

 

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If you do not do this, your Award will be forfeited and you will not be entitled to receive
anything on account of this Award.

 

 

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Description of Your Nonqualified Stock Options

You have been awarded Nonqualified Stock Options (or “NSOs”) to purchase [Number Granted] common
shares of the Company. You may purchase one of the Company’s common shares for each NSO, but only
if you pay US $[Price] (“Exercise Price”) for each common share you purchase, you exercise the NSOs
on or before [Expiration Date] (“Expiration Date”) and you meet the terms and conditions described
in this Award Agreement, the Plan and the Prospectus, as supplemented. You also must arrange to
pay any taxes due on exercise using one of the procedures described later in this Award Agreement.

Limits on Exercising Your NSOs

Normally, your NSOs will vest (and become exercisable) on [Vesting Date] but only if you are
actively employed by the Company or any Subsidiary or Affiliate (as defined in the Plan) on
[Vesting Date] and all other conditions described in this Award Agreement, the Plan and the
Prospectus, as supplemented, are met.

This does not mean that you must exercise your NSOs on this date; this is merely the first date
that you may do so. However, your NSOs will expire unless they are exercised on or before the
Expiration Date ([Expiration Date]).

There are some special situations in which your NSOs may vest earlier. These are described later
in this Award Agreement.

At any one time, you may not exercise NSOs to buy fewer than 100 common shares of the Company (or,
if smaller, the number of your outstanding vested NSOs). Also, you may never exercise an NSO to
purchase a fractional common share of the Company; NSOs for fractional common shares will always be
redeemed for cash.

Exercising Your NSOs

After they vest, you may exercise your NSOs by completing an Exercise Notice. A copy of this
Exercise Notice is attached to this Award Agreement. Also, a copy of this Exercise Notice and a
description of the procedures that you must follow to exercise your NSOs are available from [Third
Party Administrator] at [TPA Telephone Number] or at the address shown below.

You may use one of three methods to exercise your NSOs and to pay any taxes related to that
exercise. You will decide on the method at the time of exercise.

Cashless Exercise and Sell: If you elect this alternative, you will be deemed to have
simultaneously exercised the NSOs and to have sold the common shares underlying those NSOs.
When the transaction is complete, you will receive cash (but no common shares of the
Company) equal to the difference between the aggregate value of the common shares deemed to
have been acquired through the exercise minus the NSOs’ aggregate exercise price and related
taxes.

Combination Exercise: If you elect this alternative, you will be deemed to have
simultaneously exercised the NSOs and to have sold a number of those common shares with a
value equal to the NSOs’ aggregate exercise price and related taxes. When the transaction
is complete, the balance of the common shares subject to the NSOs you exercised will be
transferred to you.

 

 

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Exercise and Hold: If you elect this alternative, you must pay the full exercise price plus
related taxes (in cash, a cash equivalent or in common shares of the Company having a value
equal to the exercise price and which you have owned for at least six months before the
exercise date). When the transaction is complete, you will receive one common share for
each NSO exercised.

Before choosing an exercise method, you should read the Prospectus, as supplemented, to ensure you
understand the federal income tax effect of exercising your NSOs and of the exercise method you
choose.

If you do not elect one of these methods, we will apply the Cashless Exercise and Sell method
described above.

Tax Treatment of Your NSOs

The federal income tax treatment of your NSOs is discussed in the Plan’s Prospectus, as
supplemented.

*****

General Terms and Conditions

You May Forfeit Your NSOs if Your Employment Ends

Normally, you may exercise your NSOs after they vest and before the Expiration Date ([Expiration
Date]). However, your NSOs may be cancelled earlier than the Expiration Date if you terminate
employment before [Vesting Date].

[a] If your employment is terminated for “cause” (as defined in the Plan), the NSOs will
expire on the date your employment ends; or

[b] If your employment is terminated because of your [i] death or [ii] disability (as
defined in the Plan), the NSOs will expire on the earlier of the Expiration Date or 12
months after you terminate; or

[c] If your employment is terminated after you have reached either [i] age 55 and completed
at least 10 years of employment or [ii] age 62 regardless of your years of service, the NSOs
will expire on the earlier of the Expiration Date or 12 months after you terminate; or

[d] If your employment is terminated for any reason other than “cause,” death or disability,
your NSOs will expire on the earlier of the Expiration Date or 90 days after you terminate.

Note: it is your responsibility to keep track of when your NSOs expire.

You May Forfeit Your NSOs if You Engage in Conduct That is Harmful to the Company (or any Affiliate
or Subsidiary)

You also will forfeit any outstanding NSOs and must return to the Company all common shares and
other amounts you have received through the Plan if, without our consent, you do any of the
following within 180 days before and 730 days after terminating employment (as defined in the Plan)
with the Company or any Affiliate or Subsidiary:

[a] You serve (or agree to serve) as an officer, director, consultant or employee of any
proprietorship, partnership, corporation or other entity or become the owner of a business
or a member of a partnership that competes with any portion of the Company’s (or any
Affiliate’s or

 

 

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Subsidiary’s) business with which you have been involved any time within five years before
termination of employment or render any service (including, without limitation, advertising
or business consulting) to entities that compete with any portion of the Company’s (or any
Affiliate’s or Subsidiary’s) business with which you have been involved any time within five
years before termination of employment;

[b] You refuse or fail to consult with, supply information to or otherwise cooperate with
the Company or any Affiliate or Subsidiary after having been requested to do so;

[c] You deliberately engage in any action that the Company concludes has caused substantial
harm to the interests of the Company or any Affiliate or Subsidiary;

[d] On your own behalf or on behalf of any other person, partnership, association,
corporation or other entity, you solicit or in any manner attempt to influence or induce any
employee of the Company or any Affiliate or Subsidiary to leave the Company’s or any
Affiliate’s or Subsidiary’s employment or use or disclose to any person, partnership,
association, corporation or other entity any information obtained while an employee of the
Company or any Affiliate or Subsidiary concerning the names and addresses of the Company’s
or any Affiliate’s or Subsidiary’s employees;

[e] You disclose confidential and proprietary information relating to the Company’s or any
Affiliate’s or Subsidiary’s business affairs (“Trade Secrets”), including technical
information, product information and formulae, processes, business and marketing plans,
strategies, customer information and other information concerning the Company’s or any
Affiliate’s or Subsidiary’s products, promotions, development, financing, expansion plans,
business policies and practices, salaries and benefits and other forms of information
considered by the Company or any Affiliate or Subsidiary to be proprietary and confidential
and in the nature of Trade Secrets;

[f] You fail to return all property (other than personal property), including keys, notes,
memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks,
cards, surveys, maps, logs, machines, technical data, formulae or any other tangible
property or document and any and all copies, duplicates or reproductions that you have
produced or received or have otherwise been submitted to you in the course of your
employment with the Company or any Affiliate or Subsidiary; or

[g] You engaged in conduct that the Committee (as defined in the Plan) reasonably concludes
would have given rise to a termination for “cause” (as defined in the Plan) had it been
discovered before you terminated your employment.

Your NSOs May Vest Earlier Than Described Above. Normally, your NSOs will vest only in the
circumstances described above. However, if there is a “Change in Control” (as defined in the
Plan), your NSOs may vest earlier. You should read the Plan and the Prospectus carefully to ensure
that you understand how this may happen.

Amendment/Termination. We may amend or terminate the Plan at any time.

Rights Before Your NSOs Are Exercised: You may not vote, or receive any dividends associated with,
the common shares underlying your NSOs.

Beneficiary Designation: You may name a beneficiary or beneficiaries to receive or to exercise any
vested NSOs that are unexercised when you die. This may be done only on the attached Beneficiary

 

 

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Designation Form and by following the rules described in that Form. The Beneficiary Designation
Form need not be completed now and is not required as a condition of receiving your Award. If you
die without completing a Beneficiary Designation Form or if you do not complete that Form
correctly, your beneficiary will be your surviving spouse or, if you do not have a surviving
spouse, your estate.

Transferring Your NSOs: Normally your NSOs may not be transferred to another person. However, you
may complete a Beneficiary Designation Form to name the person who may exercise your NSOs if you
die before the Expiration Date of your NSOs. Also, the Committee may allow you to place your NSOs
into a trust established for your benefit or for the benefit of your family. Contact [Third Party
Administrator] at [TPA Telephone Number] or at the address given below if you are interested in
doing this.

Governing Law: This Award Agreement will be construed in accordance with and governed by the laws
of the United States of America and of the State of Ohio (other than laws governing conflicts of
laws).

Other Agreements: Also, your NSOs will be subject to the terms of any other written agreements
between you and the Company or any Affiliate or Subsidiary to the extent that those other
agreements do not directly conflict with the terms of the Plan or this Award Agreement.

Adjustments to NSOs: Your NSOs will be adjusted, if appropriate, to reflect any change to the
Company’s capital structure (e.g., the number of your NSOs and the Exercise Price will be adjusted
to reflect a stock split).

No Right to Employment: Your award of NSOs is a voluntary, discretionary bonus being made on a
one-time basis and it does not constitute a commitment to make any future awards. This award of
NSOs and any payments made hereunder will not be considered salary or other compensation for
purposes of any severance pay or similar allowance, except as otherwise required by law. Nothing
in this Award Agreement will give you any right to continue employment with the Company or any
Subsidiary or Affiliate, as the case may be, or interfere in any way with the right of the Company
or a Subsidiary or an Affiliate to terminate your employment.

Data Privacy: Information about you and your participation in the Plan (i.e., your name,
home address and telephone number, date of birth, social insurance number, salary, nationality, job
title, any shares of stock or directorships held in the Company, details of all NSOs or other
entitlement to shares of stock awarded, cancelled, exercised, vested, unvested or outstanding in
your favor) may be collected, recorded, held, used and disclosed by the Company, and the [Third
Party Administrator] for any purpose related to the administration of the Plan. You understand
that the Company and its Subsidiaries or Affiliates may transfer such information to any third
party administrators, regardless of whether such persons are located within your country of
residence, the European Economic Area or in countries outside of the European Economic Area,
including the United States of America. You consent to the processing of information relating to
you and your participation in the Plan in any one or more of the ways referred to above. This
consent may be withdrawn at any time in writing by sending a declaration of withdrawal to the
[Third Party Administrator].

Other Rules: Your NSOs also are subject to more rules described in the Plan and in the Plan’s
Prospectus, as supplemented. You should read both of these documents carefully to ensure you fully
understand all the terms and conditions of the grant of NSOs made to you under this Award
Agreement.

*****

 

 

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You may contact [Third Party Administrator] at [TPA Telephone Number] or at the address given below
if you have any questions about your Award or this Award Agreement.

 

 

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Your Acknowledgment of Award Conditions

Note: You must sign and return a copy of this Award Agreement to [Third Party Administrator] at
the address given below no later than [___Days Post Grant Date].

By signing below, I acknowledge and agree that:

	 	•	 	A copy of the Plan has been made available to me;
	 
	 	•	 	I have received a copy of the Plan’s Prospectus, as supplemented;
	 
	 	•	 	I understand and accept the conditions placed on my NSOs and understand what I must
do to earn and exercise my NSOs. I also have had the opportunity to seek advice from
independent counsel regarding the terms and conditions of my NSOs.
	 
	 	•	 	I acknowledge that information about me and my participation in the Plan
(i.e., my name, home address and telephone number, date of birth, social
insurance number, salary, nationality, job title, any shares of stock or directorships
held in the Company, details of all NSOs or other entitlement to shares of stock
awarded, cancelled, exercised, vested, unvested or outstanding in my favor) may be
collected, recorded, held, used and disclosed by the Company and the [Third Party
Administrator] for any purpose related to the administration of the Plan. I also
understand that the Company and its Subsidiaries may transfer such information to any
third party administrators, regardless of whether such persons are located within my
country of residence, the European Economic Area or in countries outside of the
European Economic Area, including the United States of America. I consent to the
processing of information relating to me and my participation in the Plan in any one or
more of the ways referred to above. This consent may be withdrawn at any time in
writing by sending a declaration of withdrawal to the [Third Party Administrator];
	 
	 	•	 	I will consent (on my own behalf and on behalf of my beneficiaries and without any
further consideration) to any necessary change to my NSOs or this Award Agreement to
comply with any law and to avoid paying penalties under Section 409A of the U.S.
Internal Revenue Code, even if those changes affect the terms of my NSOs and reduce
their value or potential value; and
	 
	 	•	 	If I do not return a signed copy of this Award Agreement to the address shown below
on or before [___Days Post Grant Date], my NSOs will be forfeited and I will not be
entitled to receive anything on account of this Award.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	[Grantee’s Name]	 	 	 	THE SCOTTS MIRACLE-GRO COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date signed:

	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Date signed:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

A signed copy of this Award Agreement must be sent to the following address no later than [___Days
Post Grant Date]:

 

 

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[Third Party Administrator]

Attention: [TPA Contact’s Name]

[Contact’s Address]

[TPA Telephone Number]

After it is received, The Scotts Miracle-Gro Company 2006 Long-Term Incentive Plan Committee will
acknowledge receipt of your signed Award Agreement.

 

 

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THE SCOTTS MIRACLE-GRO COMPANY

2006 LONG-TERM INCENTIVE PLAN

NONQUALIFIED STOCK OPTION EXERCISE NOTICE

AFFECTING NONQUALIFIED STOCK OPTIONS GRANTED TO

[GRANTEE’S NAME] ON [GRANT DATE]

Additional copies of this Nonqualified Stock Option Exercise Notice (and any further information
you may need about this Exercise Notice or exercising your NSOs) are available from [Third Party
Administrator] at the address given below.

By completing this Exercise Notice and returning it to [Third Party Administrator] at the address
given below, I elect to exercise the NSOs described below:

NOTE: You must complete a separate Nonqualified Stock Option Exercise Notice each time you exercise
NSOs granted under each Award Agreement (e.g., if you are exercising 200 NSOs granted January 1,
2007 and 100 NSOs granted January 1, 2008 under a separate award agreement, you must complete two
Nonqualified Stock Option Exercise Notices, one for each set of NSOs being exercised).

AFFECTED NSOS: This exercise relates to the following NSOs (fill in the blanks):

     GRANT DATE: [GRANT DATE]

     NUMBER OF NSOS BEING EXERCISED WITH THIS EXERCISE NOTICE:

                                             

EXERCISE PRICE: The Exercise Price due is US $                                        

     NOTE: This amount must be the product of US $[Price] multiplied by the number of NSOs being
exercised.

PAYMENT OF EXERCISE PRICE: I have decided to pay the Exercise Price and any

related taxes by (check one):

NOTE: These methods are described in the Award Agreement.

	 	 	 	 	 
	 

	 	 	 	Cashless Exercise and Sell.
	 

	 	 	 	 
	 

	 	 	 	Combination Exercise.
	 

	 	 	 	 
	 

	 	 	 	Exercise and Hold.
	 

	 	 	 	 

Note:

	 	•	 	If you select the Exercise and Hold method of exercise, you must also follow the
procedures described in the Award Agreement to pay the Exercise Price and the taxes
related to this exercise. You should contact [Third Party Administrator] at the address
given below to find out the amount of the taxes due.

 

 

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	 	•	 	If you select either the Cashless Exercise and Sell or the Combination Exercise
methods of paying the Exercise Price, you should contact [Third Party Administrator] at
the address given below to be sure you understand how your choice of payment will
affect the number of common shares of the Company you will receive.

 

 

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YOUR ACKNOWLEDGEMENT OF EFFECT OF EXERCISE

By signing below, I acknowledge and agree that:

	 	•	 	I fully understand the effect (including the investment effect) of exercising my
NSOs and buying common shares of the Company and understand that there is no guarantee
that the value of these common shares will appreciate or will not depreciate;
	 
	 	•	 	This Exercise Notice will have no effect if it is not returned to [Third Party
Administrator] at the address given below before the Expiration Date specified in the
Award Agreement under which these NSOs were granted; and
	 
	 	•	 	The common shares of the Company I am buying by completing and returning this
Exercise Notice will be issued to me as soon as administratively practicable.

[Grantee’s Name]

                                                            

(signature)

Date signed:                                         

A signed copy of this Nonqualified Stock Option Exercise Notice must be sent to the following
address no later than the Expiration Date:

[Third Party Administrator]

Attention: [TPA Contact’s Name]

[Contact’s Address]

[TPA Telephone Number]

*****

 

 

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ACKNOWLEDGEMENT OF RECEIPT

A signed copy of this Nonqualified Stock Option Exercise Notice was received on:

                                        .

[Grantee’s Name]:

	 	 	 	 	 
	 

	 	 	 	Has effectively exercised the NSOs described in this Notice; or
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	Has not effectively exercised the NSOs described in this Notice because
	 

	 	 	 	 

                                        

describe deficiency

The Scotts Miracle-Gro Company 2006 Long-Term Incentive Plan Committee

	 	 	 	 	 
	 

	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

Note: Keep a copy of this Exercise Notice as part of the Plan’s permanent records.

 

 

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Description of Your Restricted Stock

You have been awarded [Number Granted] shares of Restricted Stock. If you satisfy the conditions
described in this Award Agreement, the Plan and the Prospectus, as supplemented, the restrictions
imposed on your Restricted Stock will be removed and you will own the underlying common shares.
You also must arrange to pay any taxes due.

When Your Restricted Stock Will Be Settled

Normally, on [Vesting Date], the Committee (as defined in the Plan) will ascertain if you have
satisfied the conditions imposed on your Restricted Stock. If you have not, your Restricted Stock
will be forfeited. If you have, as soon as administratively practicable after [Vesting Date],
these common shares will be distributed to you, free of any restrictions. Your Restricted Stock
will be held in escrow until it is settled or forfeited.

The restrictions imposed on your Restricted Stock normally will be met if you are actively employed
by the Company or any Affiliate or Subsidiary (as defined in the Plan) on [Vesting Date] and all
other conditions described in this Award Agreement, the Plan and the Prospectus, as supplemented,
are met.

Tax Treatment of Your Restricted Stock

The federal income tax treatment of your Restricted Stock is discussed in the Plan’s Prospectus, as
supplemented.

*****

General Terms and Conditions

You Will Forfeit Your Restricted Stock if Your Employment Ends

Normally, your Restricted Stock will be settled on [Vesting Date]. However, the unvested portion
of your Restricted Stock will be forfeited if you terminate employment before [Vesting Date].

You May Forfeit Your Restricted Stock if You Engage in Conduct That is Harmful to the Company (or
any Affiliate or Subsidiary)

You also will forfeit any outstanding Restricted Stock and must return to the Company all common
shares and other amounts you have received through the Plan if, without our consent, you do any of
the following within 180 days before and 730 days after terminating employment:

[a] You serve (or agree to serve) as an officer, director, consultant or employee of any
proprietorship, partnership, corporation or other entity or become the owner of a business
or a member of a partnership that competes with any portion of the Company’s (or any
Affiliate’s or Subsidiary’s) business with which you have been involved any time within five
years before termination of employment or render any service (including, without limitation,
advertising or business consulting) to entities that compete with any portion of the
Company’s (or any Affiliate’s or Subsidiary’s) business with which you have been involved
any time within five years before termination of employment;

 

 

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[b] You refuse or fail to consult with, supply information to or otherwise cooperate with
the Company or any Affiliate or Subsidiary after having been requested to do so;

[c] You deliberately engage in any action that the Company concludes has caused substantial
harm to the interests of the Company or any Affiliate or Subsidiary;

[d] On your own behalf or on behalf of any other person, partnership, association,
corporation or other entity, you solicit or in any manner attempt to influence or induce any
employee of the Company or any Affiliate or Subsidiary to leave the Company’s or any
Affiliate’s or Subsidiary’s employment or use or disclose to any person, partnership,
association, corporation or other entity any information obtained while an employee of the
Company or any Affiliate or Subsidiary concerning the names and addresses of the Company’s
or any Affiliate’s or Subsidiary’s employees;

[e] You disclose confidential and proprietary information relating to the Company’s or any
Affiliate’s or Subsidiary’s business affairs (“Trade Secrets”), including technical
information, product information and formulae, processes, business and marketing plans,
strategies, customer information and other information concerning the Company’s or any
Affiliate’s or Subsidiary’s products, promotions, development, financing, expansion plans,
business policies and practices, salaries and benefits and other forms of information
considered by the Company or any Affiliate or Subsidiary to be proprietary and confidential
and in the nature of Trade Secrets;

[f] You fail to return all property (other than personal property), including keys, notes,
memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks,
cards, surveys, maps, logs, machines, technical data, formulae or any other tangible
property or document and any and all copies, duplicates or reproductions that you have
produced or received or have otherwise been submitted to you in the course of your
employment with the Company or any Affiliate or Subsidiary; or

[g] You engaged in conduct that the Committee reasonably concludes would have given rise to
a termination for “cause” (as defined in the Plan) had it been discovered before you
terminated your employment.

Your Restricted Stock May Vest Earlier Than Described Above. Normally, your Restricted Stock will
vest only in the circumstances described above. However, if there is a “Change in Control” (as
defined in the Plan), your Restricted Stock may vest earlier. You should read the Plan and the
Prospectus, as supplemented, carefully to ensure that you understand how this may happen.

Rights Before Your Restricted Stock Vests: Even though your Restricted Stock is held in escrow
until it is settled or forfeited, you may exercise any voting rights associated with the common
shares underlying your Restricted Stock while it is held in escrow. You also will be entitled to
receive any dividends paid on these common shares during this period, although these dividends also
will be held in escrow until the Restricted Stock is settled and distributed to you (or forfeited)
depending on whether or not you have met the conditions described in this Award Agreement and in
the Plan and the Prospectus.

Beneficiary Designation: You may name a beneficiary or beneficiaries to receive any Restricted
Stock that is settled after you die. This may be done only on the attached Beneficiary Designation
Form and by following the rules described in that Form. The Beneficiary Designation Form need not
be completed now and is not required as a condition of receiving your Award. If you die without
completing a Beneficiary Designation Form or if you do not complete that Form correctly, your
beneficiary will be your surviving spouse or, if you do not have a surviving spouse, your estate.

 

 

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Transferring Your Restricted Stock: Normally your Restricted Stock may not be transferred to
another person. However, you may complete a Beneficiary Designation Form to name the person to
receive any Restricted Stock that is settled after you die. Also, the Committee may allow you to
place your Restricted Stock into a trust established for your benefit or the benefit of your
family. Contact [Third Party Administrator] at [TPA Telephone Number] or the address given below
if you are interested in doing this.

Governing Law: This Award Agreement will be construed in accordance with and governed by the laws
of the United States of America and of the State of Ohio (other than laws governing conflicts of
laws).

Other Agreements: Also, your Restricted Stock will be subject to the terms of any other written
agreements between you and the Company or any Affiliate or Subsidiary to the extent that those
other agreements do not directly conflict with the terms of the Plan or this Award Agreement.

Adjustments to Your Restricted Stock: Your Restricted Stock will be adjusted, if appropriate, to
reflect any change to the Company’s capital structure (e.g., the number of common shares underlying
your Restricted Stock will be adjusted to reflect a stock split).

No Right to Employment: Your award of Restricted Stock is a voluntary, discretionary bonus being
made on a one-time basis and it does not constitute a commitment to make any future awards. This
award of Restricted Stock and any payments made hereunder will not be considered salary or other
compensation for purposes of any severance pay or similar allowance, except as otherwise required
by law. Nothing in this Award Agreement will give you any right to continue employment with the
Company or any Subsidiary or Affiliate, as the case may be, or interfere in any way with the right
of the Company or a Subsidiary or an Affiliate to terminate your employment.

Data Privacy: Information about you and your participation in the Plan (i.e., your name,
home address and telephone number, date of birth, social insurance number, salary, nationality, job
title, any shares of stock or directorships held in the Company, details of all Restricted Stock or
other entitlement to shares of stock awarded, cancelled, exercised, vested, unvested or outstanding
in your favor) may be collected, recorded, held, used and disclosed by the Company and the [Third
Party Administrator] for any purpose related to the administration of the Plan. You understand
that the Company and its Subsidiaries or Affiliates may transfer such information to any third
party administrators, regardless of whether such persons are located within your country of
residence, the European Economic Area or in countries outside of the European Economic Area,
including the United States of America. You consent to the processing of information relating to
you and your participation in the Plan in any one or more of the ways referred to above. This
consent may be withdrawn at any time in writing by sending a declaration of withdrawal to the
[Third Party Administrator].

Other Rules: Your Restricted Stock also is subject to more rules described in the Plan and in the
Plan’s Prospectus, as supplemented. You should read both of these documents carefully to ensure
you fully understand all the terms and conditions of the grant of Restricted Stock under this Award
Agreement.

*****

You may contact [Third Party Administrator] at [TPA Telephone Number] or at the address given below
if you have any questions about your Award or this Award Agreement.

 

 

AUSTRIAN FORM

Your Acknowledgment of Award Conditions

Note: You must sign and return a copy of this Award Agreement to [Third Party Administrator] at
the address given below no later than [___Days Post Grant Date].

By signing below, I acknowledge and agree that:

	 	•	 	A copy of the Plan has been made available to me;
	 
	 	•	 	I have received a copy of the Plan’s Prospectus, as supplemented;
	 
	 	•	 	I understand and accept the conditions placed on my Award and understand what I must do
to earn my Award. I also have had the opportunity to seek advice from independent counsel
regarding the terms and conditions of my Award;
	 
	 	•	 	I acknowledge that information about me and my participation in the Plan (i.e.,
my name, home address and telephone number, date of birth, social insurance number, salary,
nationality, job title, any shares of stock or directorships held in the Company, details
of all Restricted Stock or other entitlement to shares of stock awarded, cancelled,
exercised, vested, unvested or outstanding in my favor) may be collected, recorded, held,
used and disclosed by the Company and the [Third Party Administrator] for any purpose
related to the administration of the Plan. I also understand that the Company and its
Subsidiaries may transfer such information to any third party administrators, regardless of
whether such persons are located within my country of residence, the European Economic Area
or in countries outside of the European Economic Area, including the United States of
America. I consent to the processing of information relating to me and my participation in
the Plan in any one or more of the ways referred to above. This consent may be withdrawn
at any time in writing by sending a declaration of withdrawal to the [Third Party
Administrator];
	 
	 	•	 	I will consent (on my own behalf and on behalf of my beneficiaries and without any
further consideration) to any necessary change to my Award or this Award Agreement to
comply with any law and to avoid paying penalties under Section 409A of the U.S. Internal
Revenue Code, even if those changes affect the terms of my Award and reduce their value or
potential value; and
	 
	 	•	 	If I do not return a signed copy of this Award Agreement to the address shown below on
or before [___Days Post Grant Date], my Award will be forfeited and I will not be entitled
to receive anything on account of this Award.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	[Grantee’s Name]	 	 	 	THE SCOTTS MIRACLE-GRO COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date signed:

	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Date signed:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

AUSTRIAN FORM

A signed copy of this Award Agreement must be sent to the following address no later than [___Days
Post Grant Date]:

[Third Party Administrator]

Attention: [TPA Contact’s Name]

[Contact’s Address]

[TPA Telephone Number]

After it is received, The Scotts Miracle-Gro Company 2006 Long-Term Incentive Plan Committee will
acknowledge receipt of your signed Award Agreement.

 

 

AUSTRIAN FORM

Description of Your Restricted Stock Units

You have been awarded [Number Granted] Restricted Stock Units (or “RSUs”). If you satisfy the
conditions described in this Award Agreement, the Plan and the Prospectus, as supplemented, you
will be issued [Number Granted] common shares of the Company. You also must arrange to pay any
taxes due.

When Your RSUs Will Be Settled

Normally, on [Vesting Date] (“Settlement Date”), the Company will ascertain if you have satisfied
the conditions imposed on your RSUs. If you have not, your RSUs will be forfeited. If you have,
as soon as administratively practicable after [Vesting Date], [Number Granted] common shares will
be distributed to you.

The restrictions imposed on your RSUs normally will be met if you are actively employed by the
Company or any Affiliate or Subsidiary (as defined in the Plan) on [Vesting Date] and all other
conditions described in this Award Agreement, the Plan and the Prospectus, as supplemented, are
met.

Tax Treatment of Your RSUs

The federal income tax treatment of your RSUs is discussed in the Plan’s Prospectus, as
supplemented.

*****

General Terms and Conditions

You Will Forfeit Your RSUs if Your Employment Ends

Normally, your RSUs will be settled on the date shown earlier in this Award Agreement. However,
the unvested portion of your RSUs will be forfeited if you terminate employment before [Vesting
Date].

You May Forfeit Your RSUs if You Engage in Conduct That is Harmful to the Company (or any Affiliate
or Subsidiary)

You also will forfeit any outstanding RSUs and must return to the Company all common shares and
other amounts you have received through the Plan if, without our consent, you do any of the
following within 180 days before and 730 days after terminating employment:

[a] You serve (or agree to serve) as an officer, director, consultant or employee of any
proprietorship, partnership, corporation or other entity or become the owner of a business
or a member of a partnership that competes with any portion of the Company’s (or any
Affiliate’s or Subsidiary’s) business with which you have been involved any time within five
years before termination of employment or render any service (including, without limitation,
advertising or business consulting) to entities that compete with any portion of the
Company’s (or any Affiliate’s or Subsidiary’s) business with which you have been involved
any time within five years before termination of employment;

[b] You refuse or fail to consult with, supply information to or otherwise cooperate with
the Company or any Affiliate or Subsidiary after having been requested to do so;

[c] You deliberately engage in any action that the Company concludes has caused substantial
harm to the interests of the Company or any Affiliate or Subsidiary;

 

 

AUSTRIAN FORM

[d] On your own behalf or on behalf of any other person, partnership, association,
corporation or other entity, you solicit or in any manner attempt to influence or induce any
employee of the Company or any Affiliate or Subsidiary to leave the Company’s or any
Affiliate’s or Subsidiary’s employment or use or disclose to any person, partnership,
association, corporation or other entity any information obtained while an employee of the
Company or any Affiliate or Subsidiary concerning the names and addresses of the Company’s
and any Affiliate’s or Subsidiary’s employees;

[e] You disclose confidential and proprietary information relating to the Company’s or any
Affiliate’s or Subsidiary’s business affairs (“Trade Secrets”), including technical
information, product information and formulae, processes, business and marketing plans,
strategies, customer information and other information concerning the Company’s or any
Affiliate’s or Subsidiary’s products, promotions, development, financing, expansion plans,
business policies and practices, salaries and benefits and other forms of information
considered by the Company or any Affiliate or Subsidiary to be proprietary and confidential
and in the nature of Trade Secrets;

[f] You fail to return all property (other than personal property), including keys, notes,
memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks,
cards, surveys, maps, logs, machines, technical data, formulae or any other tangible
property or document and any and all copies, duplicates or reproductions that you have
produced or received or have otherwise been submitted to you in the course of your
employment with the Company or any Affiliate or Subsidiary; or

[g] You engaged in conduct that the Committee (as defined in the Plan) reasonably concludes
would have given rise to a termination for “cause” (as defined in the Plan) had it been
discovered before you terminated your employment.

Your RSUs May Vest Earlier Than Described Above. Normally, your RSUs will vest only in the
circumstances described above. However, if there is a “Change in Control” (as defined in the
Plan), your RSUs may vest earlier. You should read the Plan and the Prospectus, as supplemented,
carefully to ensure that you understand how this may happen.

Rights Before Your RSUs Vest: You may not vote, or receive any dividends associated with the
common shares underlying your RSUs.

Beneficiary Designation: You may name a beneficiary or beneficiaries to receive any RSUs that are
settled after you die. This may be done only on the attached Beneficiary Designation Form and by
following the rules described in that Form. The Beneficiary Designation Form need not be completed
now and is not required as a condition of receiving your Award. If you die without completing a
Beneficiary Designation Form or if you do not complete that Form correctly, your beneficiary will
be your surviving spouse or, if you do not have a surviving spouse, your estate.

Transferring Your RSUs: Normally your RSUs may not be transferred to another person. However, you
may complete a Beneficiary Designation Form to name the person to receive any RSUs that are settled
after you die. Also, the Committee may allow you to place your RSUs into a trust established for
your benefit or the benefit of your family. Contact [Third Party Administrator] at [TPA Telephone
Number] or at the address given below if you are interested in doing this.

Governing Law: This Award Agreement will be construed in accordance with and governed by the laws
of the United States of America and of the State of Ohio (other than laws governing conflicts of
laws).

 

 

AUSTRIAN FORM

Other Agreements: Also, your RSUs will be subject to the terms of any other written agreements
between you and the Company or any Affiliate or Subsidiary to the extent that those other
agreements do not directly conflict with the terms of the Plan or this Award Agreement.

Adjustments to Your RSUs: Your RSUs will be adjusted, if appropriate, to reflect any change to the
Company’s capital structure (e.g., the number of your RSUs will be adjusted to reflect a stock
split).

Compliance with Section 409A of the Code: To the extent applicable, it is intended that this Award
Agreement and the Plan comply with the provisions of Section 409A of the U.S. Internal Revenue
Code, so that the income inclusion provisions of Section 409A(a)(1) do not apply to you. This
Award Agreement and the Plan shall be administered in a manner consistent with this intent, and any
provision that would cause the Award Agreement or the Plan to fail to satisfy Section 409A of the
Code shall have no force and effect until amended to comply with Section 409A of the Code (which
amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by
the Company without your consent). In particular, to the extent the RSUs become nonforfeitable
pursuant to a “Change in Control” and the event causing the RSUs to become nonforfeitable is your
retirement or an event that does not constitute a permitted distribution event under Section
409A(a)(2) of the Code, then notwithstanding anything to the contrary in this Award Agreement,
issuance of the Common Shares will be made, to the extent necessary to comply with the provisions
of Section 409A of the Code, to you on the earlier of (a) your “separation from service” with the
Company (determined in accordance with Section 409A); provided, however, that if you are a
“specified employee” (within the meaning of Section 409A), your date of issuance of the Common
Shares shall be the date that is six months after the date of your separation of service with the
Company, (b) the end of the Deferral Period, or (c) your death. Reference to Section 409A of the
Code is to Section 409A of the Internal Revenue Code of 1986, as amended, and will also include any
proposed, temporary or final regulations, or any other guidance, promulgated with respect to such
Section by the U.S. Department of the Treasury or the Internal Revenue Service. This section
applies only if you are a citizen or resident of the United Sates or if the compensation is for
services performed in the United States that is not otherwise exempt from United States federal
income taxation.

No Right to Employment: Your award of RSUs is a voluntary, discretionary bonus being made on a
one-time basis and it does not constitute a commitment to make any future awards. This award of
RSUs and any payments made hereunder will not be considered salary or other compensation for
purposes of any severance pay or similar allowance, except as otherwise required by law. Nothing
in this Award Agreement will give you any right to continue employment with the Company or any
Subsidiary or Affiliate, as the case may be, or interfere in any way with the right of the Company
or a Subsidiary or an Affiliate to terminate your employment.

Data Privacy: Information about you and your participation in the Plan (i.e., your name,
home address and telephone number, date of birth, social insurance number, salary, nationality, job
title, any shares of stock or directorships held in the Company, details of all RSUs or other
entitlement to shares of stock awarded, cancelled, exercised, vested, unvested or outstanding in
your favor) may be collected, recorded, held, used and disclosed by the Company and the [Third
Party Administrator] for any purpose related to the administration of the Plan. You understand
that the Company and its Subsidiaries or Affiliates may transfer such information to any third
party administrators, regardless of whether such persons are located within your country of
residence, the European Economic Area or in countries outside of the European Economic Area,
including the United States of America. You consent to the processing of information relating to
you and your participation in the Plan in any one or more of the ways referred to above. This
consent may be withdrawn at any time in writing by sending a declaration of withdrawal to the
[Third Party Administrator].

 

 

AUSTRIAN FORM

Other Rules: Your RSUs also are subject to more rules described in the Plan and in the Plan’s
Prospectus. You should read both of these documents carefully to ensure you fully understand all
the terms and conditions of the grant of RSUs made to you under this Award Agreement.

*****

You may contact [Third Party Administrator] at [TPA Telephone Number] or at the address given below
if you have any questions about your Award or this Award Agreement.

 

 

AUSTRIAN FORM

Your Acknowledgment of Award Conditions

Note: You must sign and return a copy of this Award Agreement to [Third Party Administrator] at
the address given below no later than [___Days Post Grant Date].

By signing below, I acknowledge and agree that:

	 	•	 	A copy of the Plan has been made available to me;
	 
	 	•	 	I have received a copy of the Plan’s Prospectus, as supplemented;
	 
	 	•	 	I understand and accept the conditions placed on my Award and understand what I must
do to earn my Award. I also have had the opportunity to seek advice from independent
counsel regarding the terms and conditions of my Award;
	 
	 	•	 	I acknowledge that information about me and my participation in the Plan
(i.e., my name, home address and telephone number, date of birth, social
insurance number, salary, nationality, job title, any shares of stock or directorships
held in the Company, details of all RSUs or other entitlement to shares of stock
awarded, cancelled, exercised, vested, unvested or outstanding in my favor) may be
collected, recorded, held, used and disclosed by the Company and the [Third Party
Administrator] for any purpose related to the administration of the Plan. I also
understand that the Company and its Subsidiaries may transfer such information to any
third party administrators, regardless of whether such persons are located within my
country of residence, the European Economic Area or in countries outside of the
European Economic Area, including the United States of America. I consent to the
processing of information relating to me and my participation in the Plan in any one or
more of the ways referred to above. This consent may be withdrawn at any time in
writing by sending a declaration of withdrawal to the [Third Party Administrator];
	 
	 	•	 	I will consent (on my own behalf and on behalf of my beneficiaries and without any
further consideration) to any necessary change to my Award or this Award Agreement to
comply with any law and to avoid paying penalties under Section 409A of the U.S.
Internal Revenue Code, even if those changes affect the terms of my Award and reduce
their value or potential value; and
	 
	 	•	 	If I do not return a signed copy of this Award Agreement to the address shown below
on or before [___Days Post Grant Date], my Award will be forfeited and I will not be
entitled to receive anything on account of this Award.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	[Grantee’s Name]	 	 	 	THE SCOTTS MIRACLE-GRO COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date signed:

	 	 	 	Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Date signed:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

A signed copy of this Award Agreement must be sent to the following address no later than [___Days
Post Grant Date]:

 

 

AUSTRIAN FORM

[Third Party Administrator]

Attention: [TPA Contact’s Name]

[Contact’s Address]

[TPA Telephone Number]

After it is received, The Scotts Miracle-Gro Company 2006 Long-Term Incentive Plan Committee will
acknowledge receipt of your signed Award Agreement.

 

 

AUSTRIAN FORM

Committee’s Acknowledgment of Receipt

A signed copy of this Award Agreement was received on                     .

By:                                         

[Grantee’s Name]

                          Has complied with the conditions imposed on the grant and the Award Agreement remains
in effect; or

                          Has not complied with the conditions imposed on the grant and the [Name of Award(s)]
are forfeited because                                         .

                                                            

describe deficiency

The Scotts Miracle-Gro Company 2006 Long-Term Incentive Plan Committee

	 	 	 	 	 
	 

	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

Note: Send a copy of this completed Award Agreement to [Grantee’s Name] and keep a copy as part of
the Plan’s permanent records.

 

 

AUSTRIAN FORM

THE SCOTTS MIRACLE-GRO COMPANY

2006 LONG-TERM INCENTIVE PLAN

BENEFICIARY DESIGNATION FORM

RELATING TO [FORM OF AWARD] AWARD GRANTED TO

[GRANTEE’S NAME] ON [GRANT DATE]

1.00 Instructions for Completing This Beneficiary Designation Form

You may use this Beneficiary Designation Form to [1] name the person you want to receive any amount
due under The Scotts Miracle-Gro Company 2006 Long-Term Incentive Plan after your death or [2]
change the person who will receive these benefits.

There are several things you should know before you complete this Beneficiary Designation Form.

First, if you do not elect a beneficiary, any amount due to you under the Plan when you die will be
paid to your surviving spouse or, if you have no surviving spouse, to your estate.

Second, your election will not be effective (and will not be implemented) unless you complete all
applicable portions of this Beneficiary Designation Form and return it to [Third Party
Administrator] at the address given below.

Third, all elections will remain in effect until they are changed (or until all death benefits are
paid).

Fourth, if you designate your spouse as your beneficiary but are subsequently divorced from that
person (or your marriage is annulled), your beneficiary designation will be revoked automatically.

Fifth, if you have any questions about this Beneficiary Designation Form or if you need additional
copies of this Form, please contact [Third Party Administrator] at [TPA Telephone Number] or at the
address or number given below.

1.00 Designation of Beneficiary

1.01 Primary Beneficiary:

I designate the following person(s) as my Primary Beneficiary or Beneficiaries to receive any
amount due after my death under the terms of the Award Agreement described at the top of this
Beneficiary Designation Form. This benefit will be paid, in the proportion specified, to:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	% to	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	      (Name)                (Relationship)	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	% to	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	      (Name)                (Relationship)	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	% to	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	      (Name)                (Relationship)	 	 

 

 

AUSTRIAN FORM

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	% to	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	      (Name)                (Relationship)	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 

1.02 Contingent Beneficiary

     If one or more of my Primary Beneficiaries die before I die, I direct that any amount due
after my death under the terms of the Award described at the top of this Beneficiary Designation
Form:

                          Be paid to my other named Primary Beneficiaries in proportion to the allocation given
above (ignoring the interest allocated to the deceased Primary Beneficiary); or

                          Be distributed among the following Contingent Beneficiaries:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	% to	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	      (Name)                (Relationship)	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	% to	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	      (Name)                (Relationship)	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	% to	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	      (Name)                (Relationship)	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	% to	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	      (Name)                (Relationship)	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 

Elections made on this Beneficiary Designation Form will be effective only after this Form is
received by [Third Party Administrator] and only if it is fully and properly completed and signed.

[Grantee’s Name]

	 	 	 	 	 
	 

	 	 	 	 
	Date of Birth:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 

     Sign and return this Beneficiary Designation Form to [Third Party Administrator] at the
address given below.

	 	 	 	 	 
	 

Date

	 	 

Signature
	 	 

 

 

AUSTRIAN FORM

Return this signed Beneficiary Designation Form to [Third Party Administrator] at the following
address:

[Third Party Administrator]

Attention: [TPA Contact’s Name]

[Contact’s Address]

[TPA Telephone Number]

Received on:                                         

By:EX-10.3

 

EXHIBIT 10.3

BELGIAN FORM

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES

THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.

THE SCOTTS MIRACLE-GRO COMPANY

2006 LONG-TERM INCENTIVE PLAN

AWARD AGREEMENT FOR EMPLOYEES

[FORM OF AWARD] AWARDED TO [GRANTEE’S NAME] ON [GRANT DATE]

The Scotts Miracle-Gro Company (“Company”) and its shareholders believe that their business
interests are best served by ensuring that you have an opportunity to share in the Company’s
business success. To this end, the Company adopted and its shareholders approved The Scotts
Miracle-Gro Company 2006 Long-Term Incentive Plan (“Plan”) through which key employees, like you,
may acquire (or share in the appreciation of) common shares of the Company.

We cannot guarantee that the value of your Award (or the value of the common shares you acquire
through an Award) will increase. This is because the value of the Company’s common shares is
affected by many factors. However, the Company believes that your efforts contribute to the value
of the Company’s common shares and that the Plan (and the Awards made through the Plan) is an
appropriate means of sharing with you the value of your contribution to the Company’s business
success.

This Award Agreement describes the type of Award that you have been granted and the conditions that
must be met before you may receive the value associated with your Award. To ensure you fully
understand these terms and conditions, you should:

	 	•	 	Read the Plan and the Plan’s Prospectus, as supplemented, carefully to ensure you
understand how the Plan works;
	 
	 	•	 	Read this Award Agreement carefully to ensure you understand the nature of your Award
and what you must do to earn it; and
	 
	 	•	 	Contact [Contact’s Name at Company], [Contact’s Title] at [Telephone Number] if you have
any questions about your Award. Or, you may send a written inquiry to the address shown
below:

The Scotts Miracle-Gro Company

Attention: [Contact’s Name at Company]

[Contact’s Title]

14111 Scottslawn Road

Marysville, Ohio 43041

Also, upon receipt of this Award Agreement, you must execute an acknowledgment of receipt in the
form as attached hereto (the “Acknowledgment of Receipt” or “Acknowledgment”) and return this
Acknowledgment to [Third Party Administrator] at the address listed in the Acknowledgment within
[___days following the Grant Date] and decide whether you wish to accept this award of NSOs. If
you decide to accept the Award, you must also complete the Acceptance Form attached hereto.

Acceptance of the Award hereunder will only take place by returning this Award Agreement and the
Acceptance Form attached hereto, all duly executed by you, to [Third Party Administrator] at the
address listed in the Acknowledgment within 60 days following the Grant Date, if you elect to be
subject to tax at grant or completely reject the NSOs, or after the 60th day following
the Grant Date [but before the ___day following the Grant Date], if you decide to be subject to
tax at exercise.

-1-

 

BELGIAN FORM

If you do not return a signed copy of the Acknowledgement within [___days following the Grant Date]
to the address shown below and a signed copy of the Award Agreement and the Acceptance Form on or
before [___days following the Grant Date], your NSOs will be forfeited and you will not be
entitled to receive anything on account of this award of NSOs.

-2-

 

BELGIAN FORM

Description of Your Nonqualified Stock Options

In accordance with the Prospectus dated February 1, 2006 (the “Prospectus”) relating to the Plan,
on this ___day of ___, 2006 (the “Grant Date”), you have hereby been awarded Nonqualified Stock
Options (the “NSOs”) to purchase [Number of NSOs Granted] common shares of The Scotts Miracle-Gro
Company (the “Company”) (the “Award”). Each NSO entitles you to purchase one of the Company’s
common shares, but only if

(i) you pay US$[Price] (the “Exercise Price”) for each common share you purchase;

(ii) you exercise the NSOs on or before [Expiration Date] (the “Expiration Date”); and

(iii) you meet the terms and conditions described in this Award Agreement, the Plan, the
Prospectus and the Belgian Prospectus Supplement dated                     , 2007 (the “Belgian
Prospectus Supplement”).

You also must arrange to pay any taxes due on grant and/or exercise using one of the procedures
described later in this Award Agreement. Unless otherwise defined herein, capitalized terms used
in this Award Agreement are defined in the Prospectus or the Plan.

Limits on Exercising Your NSOs

Normally, your NSOs will vest (and become exercisable) on [Vesting Date] (the “Vesting Date”) but
only if you are actively employed by the Company or any Subsidiary or Affiliate on the Vesting Date
and all other conditions described in this Award Agreement, the Plan, the Prospectus and the
Belgian Prospectus Supplement are met.

Note: This does not mean that you must exercise your NSOs on the Vesting Date; this is merely the
first date that you may do so. However, your NSOs will expire unless they are exercised on or
before the Expiration Date or any other date at which your right to the NSOs and/or to exercise the
NSOs is forfeited in accordance with the terms and conditions of this Award Agreement, the Plan,
the Prospectus or the Belgian Prospectus Supplement.

There are some special situations in which your NSOs may vest earlier. These are described further
in this Award Agreement.

At any one time, you may not exercise NSOs to buy less than 100 common shares of the Company (or,
if smaller, the number of your outstanding vested NSOs). Also, you may never exercise an NSO to
purchase a fractional common share of the Company. NSOs for fractional common shares will always be
redeemed for cash. You acknowledge and accept that this may trigger a different Belgian tax and
social security treatment than when common shares are issued upon exercising the NSOs and that you
have consulted any tax attorneys or accountants you deem advisable thereon and that you are fully
informed on such tax and/or social security treatment and you accept all liability with regard to
such taxes and/or social security and the payment thereof.

Exercising Your NSOs

After they vest, you may exercise your NSOs by completing an exercise notice in the form as
attached to this Award Agreement (the “Exercise Notice”). Additional copies of this Exercise
Notice and a description of the procedures that you must follow to exercise your NSOs are available
from [Third Party Administrator] at [TPA Telephone Number] or at the address shown in the
Acknowledgment of Receipt.

-3-

 

BELGIAN FORM

If you accept this award of NSOs within 60 days following the Grant Date, you must pay the amount
of Belgian tax due on the grant of the NSOs, as well as any Belgian social security which may be
due thereon, in the month in which the 60th day following the Grant Date falls. If you
accept this Award after the 60th day following the Grant Date, you will only be subject
to tax and/or social security at exercise. Before choosing the timing of your acceptance, you
should read the “Federal Income Tax” section of the Prospectus as well as the Belgian Prospectus
Supplement to ensure you understand the U.S. federal and Belgian income tax effect of accepting
your NSOs and of the difference in taxation which exists depending on the timing of your
acceptance.

Should you wish so, this amount of tax and/or social security can be withheld by the social
secretariat of your employer from your salary of the month in which the NSOs become taxable and
paid to the Belgian tax authorities. You can elect for the social secretariat of your employer to
be instructed to do so in the Acceptance Form attached hereto.

At the time of exercise, you must pay the aggregate exercise price plus taxes, if any. Payment of
the aggregate exercise price and any related taxes shall be done by any of the following methods,
or a combination thereof, at your election:

	 	[a]	 	Exercise and Hold: If you elect this alternative, you must pay the full
exercise price plus related taxes :

	 	(i)	 	in cash;
	 
	 	(ii)	 	in a cash equivalent; or
	 
	 	(iii)	 	in common shares of the Company having a value equal to the
aggregate exercise price and any related taxes and which you have owned for at
least six months before the exercise date;

	 	[b]	 	Cashless Exercise and Sell: If you elect this alternative, you will be deemed
to have simultaneously exercised the NSOs and to have sold the common shares underlying
those NSOs. When the transaction is complete, you will receive cash (but no common shares of the
Company) equal to the difference between the aggregate value of the
common shares deemed to have been acquired through the exercise minus the NSOs’
aggregate exercise price and related taxes. You acknowledge and accept that this way of
exercising your NSOs may trigger additional Belgian taxes and/or social security and
that you have consulted any tax attorneys or accountants you deem advisable thereon and
that you are fully informed on such additional taxes and/or social security and you
accept all liability with regard to such additional taxes and/or social security and
the payment thereof;
	 
	 	[c]	 	Combination Exercise: If you elect this alternative, you will be deemed to
have simultaneously exercised the NSOs and to have sold a number of those common shares
with a value equal to the NSOs’ aggregate exercise price and related taxes. When the
transaction is complete, the balance of the common shares subject to the NSOs you
exercised will be transferred to you. You acknowledge and accept that this way of
exercising your NSOs may trigger additional Belgian taxes and/or social security and
that you have consulted any tax attorneys or accountants you deem advisable thereon and
that you are fully informed on such additional taxes and/or social security and you
accept all liability with regard to such additional taxes and/or social security and
the payment thereof.

-4-

 

BELGIAN FORM

Any NSO shall only be deemed exercised upon receipt by the Company of a fully completed and
executed Exercise Notice together with the aggregate exercise price but only if and when the taxes
due at grant and/or exercise have been fully paid. At that time, you will receive one common share
of the Company for each NSO exercised. You acknowledge and agree that the Company may refuse to
honor the exercise and to deliver common shares of the Company if the exercise price and or any
taxes due on the grant and/or exercise of the NSOs have not been paid at the time of exercise.

Before choosing an exercise method, you should read the “Federal Income Tax” section of the
Prospectus as well as the Belgian Prospectus Supplement to ensure you understand the U.S. federal
and Belgian income tax effect of exercising your NSOs and of the exercise method you choose.

If you do not elect one of these methods, we will apply the Cashless Exercise and Sell method
described above.

Tax Treatment of Your NSOs

A limited description of the Belgian and U.S. federal income tax treatment of your NSOs is
discussed in the Plan’s Prospectus and the Belgian Prospectus Supplement. This description is given
for your information only and can not be relied upon or used in any way against the Company, its
Affiliates or Subsidiaries. You understand that you may suffer adverse tax consequences as a result
of the grant of the NSOs and your acceptance thereof, as well as of your purchase or disposition of
the common shares of the Company. By executing this Award Agreement, you represent that you have
consulted with any tax attorneys or accountants you deem advisable in connection with the grant and
acceptance of the NSOs as well as with the purchase and disposition of the common shares of the
Company and that you are not relying on the Company for tax advice.

*****

General Terms and Conditions

You May Forfeit Your NSOs if Your Employment Ends

Normally, you may exercise your NSOs after they vest and before the Expiration Date. However, your
NSOs may be cancelled earlier than the Expiration Date if your employment terminates before
[Vesting Date].

[a] If your employment is terminated for “cause” (as defined in the Plan), the NSOs will
expire on the date your employment ends; or

[b] If your employment is terminated because of your [i] death or [ii] disability (as
defined in the Plan), the NSOs will expire on the earlier of the Expiration Date or 12
months after such termination; or

[c] If your employment is terminated after you have reached either [i] age 55 and completed
at least 10 years of employment or [ii] age 62 regardless of your years of service, the NSOs
will expire on the earlier of the Expiration Date or 12 months after such termination; or

[d] If your employment is terminated for any reason other than “cause,” death or disability,
your NSOs will expire on the earlier of the Expiration Date or 90 days after such
termination.

Note that it is your single responsibility to keep track of when your NSOs expire.

-5-

 

BELGIAN FORM

You May Forfeit Your NSOs if You Engage in Conduct That is Harmful to the Company (or any Affiliate
or Subsidiary)

You also will forfeit any outstanding NSOs and must return to the Company all common shares and
other amounts you have received through the Plan if, without the Company’s consent, you do any of
the following within 180 days before and 730 days after terminating employment (as defined in the
Plan) with the Company or any Affiliate or Subsidiary:

[a] You serve (or agree to serve) as an officer, Director, consultant or employee of any
proprietorship, partnership, corporation or other entity or become the owner of a business
or a member of a partnership that competes with any portion of the Company’s (or any
Affiliate’s or Subsidiary’s) business with which you have been involved at any time during
the five years prior to termination of your employment or render any service (including,
without limitation, advertising or business consulting) to entities that compete with any
portion of the Company’s (or any Affiliate’s or Subsidiary’s) business with which you have
been involved at any time during the five years prior to termination of your employment;

[b] You refuse or fail to consult with, supply information to or otherwise cooperate with
the Company or any Affiliate or Subsidiary after having been requested to do so;

[c] You deliberately engage in any action that the Company concludes has caused substantial
harm to the interests of the Company or any Affiliate or Subsidiary;

[d] On your own behalf or on behalf of any other person, partnership, association,
corporation or other entity, you solicit or in any manner attempt to influence or induce any
employee of the Company or any Affiliate or Subsidiary to leave the Company’s or any
Affiliate’s or Subsidiary’s employment or use or disclose to any person, partnership,
association, corporation or other entity any information obtained while an employee of the
Company or any Affiliate or Subsidiary concerning the names and addresses of the Company’s
or any Affiliate’s or Subsidiary’s employees;

[e] You disclose confidential and proprietary information relating to the Company’s or any
Affiliate’s or Subsidiary’s business affairs (“Trade Secrets”), including technical
information, product information and formulae, processes, business and marketing plans,
strategies, customer information and other information concerning the Company’s or any
Affiliate’s or Subsidiary’s products, promotions, development, financing, expansion plans,
business policies and practices, salaries and benefits and other forms of information
considered by the Company or any Affiliate or Subsidiary to be proprietary and confidential
and in the nature of Trade Secrets;

[f] You fail to return all property (other than personal property), including keys, notes,
memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks,
cards, surveys, maps, logs, machines, technical data, formulae or any other tangible
property or document and any and all copies, duplicates or reproductions that you have
produced or received or have otherwise been submitted to you in the course of your
employment with the Company or any Affiliate or Subsidiary; or

[g] You engaged in conduct that the Committee reasonably concludes would have given rise to
a termination for “cause” (as defined in the Plan) had it been discovered before you
terminated your employment.

-6-

 

BELGIAN FORM

Your NSOs May Vest Earlier Than Described Above.

Normally, your NSOs will vest only in the circumstances described above. However, if there is a
“Change in Control” (as defined in the Plan), your NSOs may vest earlier. You should read the
Plan, the Prospectus, and the Belgian Prospectus Supplement carefully to ensure that you understand
how this may happen.

Amendment/Termination.

The Company may amend or terminate the Plan, the Prospectus and the Belgian Prospectus Supplement
at any time.

Rights Before Your NSOs Are Exercised:

You may not vote, or receive any dividends associated with, the common shares underlying your NSOs.

Beneficiary Designation:

You may name a beneficiary or beneficiaries to receive or to exercise any vested NSOs that are
unexercised when you decease. This may be done only on the attached Beneficiary Designation Form
and by following the rules described in that Form. The Beneficiary Designation Form need not be
completed now and is not required as a condition of receiving your NSOs. If you die without
completing a Beneficiary Designation Form, or if you do not complete that Form correctly, your
beneficiary will be your surviving spouse or, if you do not have a surviving spouse, your estate.

Transferring Your NSOs:

Normally your NSOs may not be transferred to another person. However, you may complete a
Beneficiary Designation Form to name the person who may exercise your NSOs if you die before the
Expiration Date of your NSOs. Also, the Committee may allow you to place your NSOs into a trust
established for your benefit or for the benefit of your family. Contact [Third Party
Administrator] at [TPA Telephone Number] or at the address given in the Ackowledgement if you are
interested in doing this.

Governing Law:

This Award Agreement will be construed in accordance with and governed by the laws of the United
States of America and of the State of Ohio (other than laws governing conflicts of laws).

Other Agreements:

Your NSOs will be subject to the terms of any other written agreements between you and the Company
or any Affiliate or Subsidiary to the extent that those other agreements do not directly conflict
with the terms of the Plan, the Plan’s Prospectus, the Belgian Prospectus Supplement or this Award
Agreement.

Adjustments to NSOs:

Your NSOs will be adjusted, if appropriate, to reflect any change to the Company’s capital
structure (e.g., the number of your NSOs and the Exercise Price will be adjusted to reflect a stock
split).

No Right to Employment:

Your award of NSOs is a voluntary, discretionary bonus being made on a one-time basis and it does
not constitute a commitment to make any future awards. This award of NSOs and any payments made

-7-

 

BELGIAN FORM

hereunder will not be considered salary or other compensation for purposes of any severance pay or
similar allowance, except as otherwise required by law. Nothing in this Award Agreement will give
you any right to continue employment with the Company, Affiliate or any Subsidiary, as the case may
be, or interfere in any way with the right of the Company, an Affiliate or a Subsidiary to
terminate your employment.

Data Privacy:

Information about you and your participation in the Plan, including, but not limited to, your name,
home address and telephone number, date of birth, social insurance number, salary, nationality, job
title, any shares of stock or directorships held in the Company, its Affiliates or Subsidiaries,
details of all NSOs or other entitlement to shares of stock awarded, cancelled, exercised, vested,
unvested or outstanding in your favor, may be collected, recorded, held, used and disclosed for any
purpose related to the administration of the Plan. You understand that the Company, its Affiliates
and Subsidiaries may transfer such information to any third party administrators, regardless of
whether such persons are located within your country of residence, the European Economic Area or in
countries outside of the European Economic Area, including the United States of America. You
consent to the processing of information relating to you and your participation in the Plan in any
one or more of the ways referred to above.

Other Rules:

Your NSOs are also subject to more rules described in the Plan, the Plan’s Prospectus and the
Belgian Prospectus Supplement, which are all incorporated herein by reference thereto. You should
read all of these documents carefully to ensure you fully understand all the terms and conditions
of the grant of NSOs made to you under this Award Agreement.

*****

You may contact [Third Party Administrator] at [TPA Telephone Number] or at the address given below
in the Acknowledgement of Receipt if you have any questions about your award of NSOs or this Award
Agreement.

Executed in twofold on                     , the Grantee and the Company each acknowledging having
received one original copy.

	 	 	 	 	 	 	 
	 	 	The Scotts Miracle-Gro Company	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	[NAME OF GRANTEE]

	 	Represented by,	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Function,	 	 	 	 
	 

	 	 	 	 	 	 

-8-

 

BELGIAN FORM

Your Acknowledgment of Receipt

     Unless otherwise defined herein, capitalized terms used in this Acknowledgment of Receipt (the
“Acknowledgement”) are defined the Award Agreement dated                     , 200___(the “Award Agreement”),
the Prospectus dated February 1, 2006, the Belgian Prospectus Supplement dated                     , 200___,
and/or the Plan dated                     , 2006.

By signing below, I acknowledge and agree that:

	 	•	 	A copy of the Plan has been made available to me;
	 
	 	•	 	I have received a copy of the Plan’s Prospectus and the Belgian Prospectus Supplement;
	 
	 	•	 	A copy of the Award Agreement has been made available to me;
	 
	 	•	 	If I do not return a signed copy of this Acknowledgement within [___days following
the Grant Date] to the address shown below and a signed copy of the Award Agreement and
the Acceptance Form on or before [___Days Post Grant Date], my NSOs will be forfeited
and I will not be entitled to receive anything on account of this award of NSOs.

	 	 	 	 	 	 	 	 	 
	[Grantee’s Name]	 	THE SCOTTS MIRACLE-GRO COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	Date signed:

	 	 	 	Name:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Date signed:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

A signed copy of this Acknowledgement must be sent to the following address no later than [___days
following the Grant Date]:

[Third Party Administrator]

Attention: [TPA Contact’s Name]

[Contact’s Address]

[TPA Telephone Number]

After the executed Acceptance Form, Acknowledgement and Award Agreement have been received, The
Scotts Miracle-Gro Company 2006 Long-Term Incentive Plan Committee will acknowledge receipt
thereof.

-9-

 

BELGIAN FORM

THE SCOTTS MIRACLE-GRO COMPANY

2006 LONG-TERM INCENTIVE PLAN

ACCEPTANCE FORM

     Unless otherwise defined herein, capitalized terms used in this Acceptance Form are defined in
the award agreement dated                     , 200___(the “Award Agreement”), the Prospectus dated February 1,
2006, the Belgian Prospectus Supplement dated ___, 200___, and/or the Plan dated                     ,
2006.

     The undersigned,                                          (the “Grantee”), acknowledges having been awarded on
                    , 200___,                      NSOs to purchase ___common shares of the Company (the “Award”).

     The Grantee agrees to be bound by the terms and conditions of this Acceptance Form, the Award
Agreement, the Plan, the Prospectus and the Belgian Prospectus Supplement, and hereby accepts or
rejects the NSOs granted under the Award Agreement, as specifically designated below. The Grantee
acknowledges that he or she has been encouraged to discuss this matter with his or her financial or
tax advisor and that this acceptance is made knowingly.

     If you elect to accept the NSOs, please sign this Acceptance Form and the Award
Agreement and indicate your acceptance below.

     The Grantee hereby accepts (check one ONLY):

	 	o	 	the NSOs by                     , 200___(i.e., within 60 days after the Grant Date) to
obtain taxation at grant (if you choose this option, please also check one of the boxes
below)

	 	o	 	In addition, in order to benefit from the lower valuation
rules, I commit not to exercise the NSOs offered to me on or before January 1
of the fourth calendar year following the year in which the Award was made and
I acknowledge that if I nevertheless exercise (part or all of) these NSOs
before January 1 of the fourth calendar year following the year in which the
Award was made and thus break my commitment, my employer will be obliged to
report an additional benefit for the year of exercise. I further acknowledge
that the fringe benefit will have to be reported in my personal income tax
return of the year during which I broke my commitment and that it will be
subject to the normal progressive income tax rates.
	 
	 	o	 	I do not commit not to exercise the NSOs before January 1 of
the fourth calendar year following the year in which the Award was made and am
aware that I will therefore be subject to the higher valuation rule of the
taxable benefit resulting from such Award.

	 	 	 	If you want the social secretariat of your employer to make the necessary
withholdings for Belgian tax and/or social security purposes, please indicate so
below.

	 	o	 	I hereby expressly authorize the social secretariat of my
employer to withhold any taxes and/or social security which are due on the
60th day following the Grant Date because of my acceptance herein of
the Award and the NSOs from my salary for the month in which this
60th day falls. Such withholding shall be done in accordance with
the normal withholding tax schedules and based on the

-10-

 

BELGIAN FORM

	 	 	 	information used by my employer to calculate the withholding tax due on my
ordinary salary. I will remain liable to pay any additional amount of tax
and/or social security due on the Award and the NSOs.
	 
	 	o	 	I do not authorize the social secretariat of my employer to
withhold any taxes and/or social security which are due on the 60th
day following the Grant Date because of my acceptance of the Award and the NSOs
from my salary for the month in which this 60th day falls. I
therefore remain fully liable to pay any Belgian income taxes and social
security which may become due because of my acceptance of the Award and the
NSOs.

	 	o	 	the NSOs by                     , 200___(i.e., after 60 days after the Grant Date) to
obtain taxation on the difference between the exercise price and the value of the
common shares at exercise.

     OR

     If you intend to reject the NSOs, indicate your rejection below.

	 	o	 	The Grantee has considered the NSOs, and hereby expressly rejects the NSOs.
The Grantee acknowledges that he or she has been encouraged to discuss this matter with
his or her financial advisor and that this rejection is made knowingly. The Grantee
further acknowledges that he or she, by rejecting the NSOs, will not be entitled to any
payment or benefit in lieu of the NSOs.

To the extent that the Grantee accepts the NSOs, by signing below, the Grantee acknowledges and
agrees that:

	 	•	 	he understandsand accepts the conditions placed on his NSOs and understand what he
has to do to earn and exercise his NSOs; and
	 
	 	•	 	he will consent (on his/her own behalf and on behalf of his/her beneficiaries and
without any further consideration) to any necessary change to his/her NSOs or the Award
Agreement to comply with any law and to avoid paying penalties under Section 409A of
the Internal Revenue Code, even if those changes affect the terms of his/her NSOs and
reduce their value or potential value.

	 	 	 
	 

	 	 
	[GRANTEE’S NAME]

	 	Date

If you have elected to accept the NSOs within 60 days following the Grant Date in order to benefit
from the beneficial tax regime at grant, the completed form duly signed and dated should be
returned to the attention of [Third Party Administrator] by the 60th day following the
Grant Date.

If you have elected to be taxed at exercise, this form should only be executed and returned to the
attention of [Third Party Administrator] at the earliest on the 61st day following the
Grant Date but at the latest by the [___day following the Grant Date].

-11-

 

BELGIAN FORM

THE SCOTTS MIRACLE-GRO COMPANY

2006 LONG-TERM INCENTIVE PLAN

NONQUALIFIED STOCK OPTION EXERCISE NOTICE

AFFECTING NONQUALIFIED STOCK OPTIONS GRANTED TO

[GRANTEE’S NAME] ON [GRANT DATE]

Additional copies of this Nonqualified Stock Option Exercise Notice (and any further information
you may need about this Exercise Notice or exercising your NSOs) are available from [Third Party
Administrator] at the address given below.

Unless otherwise defined herein, capitalized terms used in this Exercise Notice are defined in the
award agreement dated                     , 200___(the “Award Agreement”), the Prospectus dated February 1,
2006, and/or the Plan dated                     , 2006.

By completing this Exercise Notice and returning it to [Third Party Administrator] at the address
given below, I elect to exercise the NSOs described below:

NOTE: You must complete a separate Nonqualified Stock Option Exercise Notice each time you exercise
NSOs granted under each award agreement (e.g., if you are exercising 200 NSOs granted January 1,
2007 and 100 NSOs granted January 1, 2008 under a separate award agreement, you must complete two
Nonqualified Stock Option Exercise Notices, one for each set of NSOs being exercised).

AFFECTED NSOs: This exercise relates to the following NSOs (fill in the blanks):

     GRANT DATE:                                         

NUMBER OF NSOs BEING EXERCISED WITH THIS EXERCISE NOTICE:                                         

EXERCISE PRICE: The Exercise Price due is US $                                                            

NOTE: This amount must be the product of US $[Exercise Price mentioned in the Award
Agreement] multiplied by the number of NSOs being exercised.

PAYMENT OF EXERCISE PRICE: I have decided to pay the Exercise Price and any

related taxes by (check one):

                              Cashless Exercise and Sell.

                              Combination Exercise.

                              Exercise and Hold:

                              in cash;

                              in cash equivalent;

                              in common shares of the Company.

NOTE: These methods are further described in the Award Agreement.

-12-

 

BELGIAN FORM

Note:

	 	•	 	If you select the Exercise and Hold method of exercise, you must also follow the
procedures described in the Award Agreement to pay the Exercise Price and the taxes
related to this exercise, if any. You should contact [Third Party Administrator] at the
address given below to find out the amount of the taxes due, if any.
	 
	 	•	 	If you select either the Cashless Exercise and Sell or the Combination Exercise
methods of paying the Exercise Price, you should contact [Third Party Administrator] at
the address given below to be sure you understand how your choice of payment will
affect the number of common shares of the Company you will receive.

YOUR ACKNOWLEDGEMENT OF EFFECT OF EXERCISE

By signing below, I acknowledge and agree that:

	 	•	 	I fully understand the effect (including the investment effect) of exercising my
NSOs and buying common shares of the Company and understand that there is no guarantee
that the value of these common shares will appreciate or will not depreciate;
	 
	 	•	 	This Exercise Notice will have no effect if it is not returned to [Third Party
Administrator] at the address given below before the Expiration Date specified in the
Award Agreement under which these NSOs were granted or any other date described in the
Award Agreement at which I would forfeit the NSOs and/or the right to exercise them;
and
	 
	 	•	 	The common shares of the Company I am buying by completing and returning this
Exercise Notice will be issued to me as soon as administratively practicable.

	 	 	 	 	 
	[Grantee’s Name]	 	 
	 
	 	 	 	 
	(signature)	 	 
	 
	 	 	 	 
	Date signed:
	 	 	 	 
	 

	 	 

	 	 

A signed copy of this Nonqualified Stock Option Exercise Notice must be sent to the following
address no later than on the Expiration Date:

[Third Party Administrator]

Attention: [TPA Contact’s Name]

[Contact’s Address]

[TPA Telephone Number]

-13-

 

BELGIAN FORM

ACKNOWLEDGEMENT OF RECEIPT

A signed copy of this Nonqualified Stock Option Exercise Notice was received on:
                                                                                .

[Grantee’s Name]:

                              Has effectively exercised the NSOs described in this Exercise Notice; or

                              Has not effectively exercised the NSOs described in this Exercise Notice because

                                                                 
                                        

     (describe deficiency)

The Scotts Miracle-Gro Company 2006 Long-Term Incentive Plan Committee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

Note: Keep a copy of this Exercise Notice as part of the Plan’s permanent records.

-14-

 

BELGIAN FORM

Committee’s Acknowledgment of Receipt

A signed copy of this Award Agreement was received on                     .

By:                                                             

[Grantee’s Name]

                     Has complied with the conditions imposed on the grant and the Award Agreement remains
in effect; or

                     Has not complied with the conditions imposed on the grant and the [Name of Award(s)]
are forfeited because .

                                                            
                    

describe deficiency

The Scotts Miracle-Gro Company 2006 Long-Term Incentive Plan Committee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

Note: Send a copy of this completed Award Agreement to [Grantee’s Name] and keep a copy as part of
the Plan’s permanent records.

-15-

 

BELGIAN FORM

THE SCOTTS MIRACLE-GRO COMPANY

2006 LONG-TERM INCENTIVE PLAN

BENEFICIARY DESIGNATION FORM

RELATING TO [FORM OF AWARD] AWARD GRANTED TO

[GRANTEE’S NAME] ON [GRANT DATE]

1.00 Instructions for Completing This Beneficiary Designation Form

You may use this Beneficiary Designation Form to [1] name the person you want to receive any amount
due under The Scotts Miracle-Gro Company 2006 Long-Term Incentive Plan after your death or [2]
change the person who will receive these benefits.

There are several things you should know before you complete this Beneficiary Designation Form.

First, if you do not elect a beneficiary, any amount due to you under the Plan when you die will be
paid to your surviving spouse or, if you have no surviving spouse, to your estate.

Second, your election will not be effective (and will not be implemented) unless you complete all
applicable portions of this Beneficiary Designation Form and return it to [Third Party
Administrator] at the address given below.

Third, all elections will remain in effect until they are changed (or until all death benefits are
paid).

Fourth, if you designate your spouse as your beneficiary but are subsequently divorced from that
person (or your marriage is annulled), your beneficiary designation will be revoked automatically.

Fifth, if you have any questions about this Beneficiary Designation Form or if you need additional
copies of this Form, please contact [Third Party Administrator] at [TPA Telephone Number] or at the
address or number given below.

1.00 Designation of Beneficiary

1.01 Primary Beneficiary:

I designate the following person(s) as my Primary Beneficiary or Beneficiaries to receive any
amount due after my death under the terms of the Award Agreement described at the top of this
Beneficiary Designation Form. This benefit will be paid, in the proportion specified, to:

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	% to
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 	(Relationship)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	% to
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 	(Relationship)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	% to
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 	(Relationship)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	% to
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 	(Relationship)
	 	 

-16-

 

BELGIAN FORM

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 	(Relationship)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

1.02 Contingent Beneficiary

       If one or more of my Primary Beneficiaries die before I die, I direct that any amount due
after my death under the terms of the Award described at the top of this Beneficiary Designation
Form:

                                  Be paid to my other named Primary Beneficiaries in proportion to the allocation given
above (ignoring the interest allocated to the deceased Primary Beneficiary); or

                                  Be distributed among the following Contingent Beneficiaries:

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	% to
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 	(Relationship)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	% to
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 	(Relationship)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	% to
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 	(Relationship)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	% to
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 	(Relationship)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

Elections made on this Beneficiary Designation Form will be effective only after this Form is received

by [Third Party Administrator] and only if it is fully and properly completed and signed.

[Grantee’s Name]

	 	 	 	 	 
	Date of Birth:
	 	 	 	 
	 

	 	 

	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	 	 	 

     Sign and return this Beneficiary Designation Form to [Third Party Administrator] at the
address given below.

	 	 	 	 	 	 	 
	Date

	 	 

	 	 

Signature
	 	 

Return this signed Beneficiary Designation Form to [Third Party Administrator] at the following
address:

[Third Party Administrator]

Attention: [TPA Contact’s Name]

-17-

 

BELGIAN FORM

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	Received on:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 

-18-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]