Document:

<PAGE>   1

                                                                    Exhibit 10.7

                                    AGREEMENT

         This Agreement is entered into this 30th day of July 1999 between
Davida S. Howard ("Howard and National Auto Credit, Inc., a Delaware corporation
("NAC"). Howard has been employed by NAC Vice President-Finance and Controller
and Howard and NAC have both determined that it is in their respective best
interests to discontinue the employment relationship between them, subject to
the conditions set forth in this Agreement.

         Now, therefore, for and in consideration of the premises and intending
to be legally bound, Howard and NAC agree as follows:

         1. Termination of Employment. Effective immediately upon the execution
of this Agreement by both parties, Howard hereby resigns as an employee of and
as an officer of NAC and as an employee and officer of any and all subsidiaries
of NAC. From and after the effectiveness of these resignations, Howard shall not
be an employee or officer of NAC or any subsidiary and shall not be required to
perform any further services for or on behalf of NAC or any subsidiary except as
agreed upon in Section 6. NAC shall deliver to Howard within 30 days of
execution of this Agreement the certificates for the vested restricted stock
granted for Howard, provided that with respect to the "redlined" shares, NAC
shall repurchase those shares at the vesting date market price used for income
tax purposes. Such share payment shall be made within 30 days of this Agreement.

         2. Consideration. As consideration for termination of employment and
execution of this Agreement by Howard and her resignation as set forth in
Section 1, NAC shall pay and provide to Howard the following amounts and
benefits:

         2.1 Severance Payment. NAC shall pay to Howard her salary through
         August 31, 1999 in full compensation for earned but unpaid vacation. In
         addition, NAC shall pay to Howard the sum of $200,000 in bi-weekly
         installments of $7,692.31 commencing with the first scheduled payroll
         in August 1999 and continuing until paid in full by July 31,2000
         ("final payment date").

         2.2 Health Insurance Coverage and Other Benefit Continuation. NAC shall
         provide to Howard. NAC's sole cost and expense, health, dental and life
         insurance coverage through the final payment date with coverage and
         benefits (including family health coverage and all other benefits
         including the 401K Company match) at least as favorable as the coverage
         and benefit being provided to Howard immediately before her
         resignation. The final payment shall constitute a "qualifying event"
         for the purposes of Part 6 of Title 1 of the Employee Retirement Income
         Security Act of 1974, as amended ("COBRA").

         2.3 Automobile. NAC shall provide Howard with the use of an automobile
         through the final payment date with all costs associated with the
         operation and use of the automobile borne by NAC, including, without
         limitation, all costs of registrations, insurance, repairs,
         maintenance, fuel, oil, together with a payment equal to the income and
         payroll taxes associated with the use

                                   Page 1 of 4
<PAGE>   2

         of said vehicle and this tax payment. The automobile so provided shall
         be the same automobile provided by NAC to Howard immediately before her
         resignation except that, if that automobile must be replaced (due, for
         example, to mechanical failure or accident), the replacement automobile
         shall be a new automobile of the same make and model.

         On (or within 10 business days thereafter) the final payment date,
         Howard may purchase the said automobile free and clear of all liens and
         encumbrances for $100.00. Any taxes, including income as sales taxes
         associated with this sale and this tax payment shall be paid by NAC.

         If Howard dies before all payments are made in Section 2.1, (a) any
installments of the $200,000 provide for in Section 2.1 that had not been made
before the date of her death shall be made to her estate, (b) the health and
dental insurance coverage referred to in Section 2.2 shall be continued to her
survivors through final payment date (c) and the use of the automobile referred
to in Section 2.3 shall be made available to her survivors through final payment
date.

         3. Indemnification. NAC shall indemnify Howard to the fullest extent
permitted or authorized by the Delaware General Corporation Law as it may from
time to time be amended, against any and all loss, damage, co. or expense
(including attorneys' fees) actually and reasonably incurred by Howard in
connection with any action, suit, or proceeding, whether civil, criminal,
administrative, or investigative (including, without limitation, the pending
Securities and Exchange Commission investigation and any subsequent enforcement
actions and the pending shareholder litigation) to which Howard has been made or
is threatened to be made a party, by reason of the fact that Howard is or was an
officer or employee of NAC or any subsidiary of NAC if employee acted in good
faith and in a manner employee reasonably believed to be in or not opposed to
the best interests of the Company, and with respect to any criminal action or
proceeding, had no reasonable cause to believe the conduct of Howard was
unlawful. No indemnification shall be made in respect of any claim, issue or
matter as to which Howard shall have been adjudged to be liable to NAC unless
and only to the extent that the Court of Chancery or the court in which such
action or suit was brought shall determine upon application that. despite the
adjudication of liability but in view of all circumstances of the case, employee
is fairly and reasonably entitled to indemnification for such expenses which the
Court of Chancery or such other court shall deem proper .The indemnification
provided by the Section 3 shall not be deemed exclusive of any other rights to
which Howard may be entitled under the articles of incorporation or the by-laws
of NAC or of any subsidiary (which rights to indemnification under any such
articles and/or by-laws NAC shall provide to Howard to the fullest extent
possible) or any agreement. vote of shareholder~ or disinterested directors, or
otherwise, both as to action in Howard's official capacity and as to action in
another employment capacity while holding such office, and shall continue as to
Howard regarding maters occurring during her employment after Howard has ceased
to be an officer or employee and shall inure to the benefit of the heirs,
executors, and administrators of Howard.

         4. Cooperation in Defense. NAC shall cooperate fully with Howard, at
NAC's sole cost and expense, in Howard' s defense of any threatened, pending, or
completed action, suit, or proceeding of the type described in Section 3,
provided that the parties hereto are not adverse. Howard shall cooperate fully
with NAC in NAC's defense of any threatened, pending, or completed action, suit,
or proceeding of the type described in Section 3, provided that the parties
hereto are not adverse.

         5. Certain Expense. Expenses (including attorneys' fees) incurred by
Howard in defending any action, suit, or proceeding commenced or threatened
against Howard for any action or failure to act as an employee or officer
(including any of the type described in Section 3) shall be paid by NAC, as they
are incurred, in advance of final disposition of the action, suit, or proceeding
on receipt of an undertaking that Howard: (i) has reasonably incurred or will
reasonably incur actual expenses in defending a civil or criminal action, suit
or proceeding; and (ii: undertakes to repay such amount if it is ultimately
determined that she is not entitled to be indemnified by NAC under this
Agreement of otherwise. The obligation of NAC to advance expenses provided for
in this Section 5 shall not be deemed exclusive of any other rights to which
Howard may be entitled under the articles of incorporation Of the by-laws of NAC
(which obligation under any such articles and/or by-laws NAC shall fully honor)
or any agreement, vote of shareholders or disinterested directors, or otherwise.

                                   Page 2 of 4
<PAGE>   3

         6. Consulting Arrangement Howard agrees to provide consulting services
to NAC (the "Consulting Services") during the period commencing on August 16,
1999 and ending on August 15, 2000 (the "Consulting Period"), as renewable as
agreed to by the parties. During the Consulting Period, Howard shall be
available in person and by telephone to provide consultation and advice with
respect to NAC in any area that NAC reasonably requests consultation and advice;
provided, however, that the Consulting Services shall be guaranteed for at least
120 hours per month during the first six (6) months, 80 hours per month during
the next 3 months and 40 hours per month thereafter during the Consulting Period

         Howard will be paid $130 per hour, monthly, for these Consulting
Services plus reasonable expenses incurred in this consulting capacity.

         If Howard becomes a full-time employee of s non-related company, she or
the Company may terminate this section only upon 30 days written notice.

         This Consulting Agreement is separate and independent of the Terms of
Sections 1 and 2 of this Agreement.

         7. NoSet-Off' No Obligation to Seek Other Employment or to Otherwise
Mitigate. NAC's obligation to make the payments provided for in this Agreement
and otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense, or other claim whatsoever that NAC
or anyone claiming by or through NAC may have against Howard Howard shall not be
required to mitigate the amount of any payment provided for under this Agreement
by seeking other employment or otherwise. The amount of any payment provided for
under this Agreement shall not be reduced by any compensation or benefits earned
by Howard as the result of employment by another employer or otherwise after
Howard's resignation.

         8. Validity The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.

         9. Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification, or discharge is agreed to
in writing signed by Howard and NAC No agreement or representation, oral or
otherwise, express or implied, with respect to the subject matter hereof has
been made by cither party which is not set forth expressly in this Agreement

         10. Entire Agreement This Agreement contains the entire agreement
between the parties and supersedes the Agreement dated May 1, 1998.

         11. Legal Expenses. Expenses (including attorneys' fees) incurred by
Employee in connection with the preparation, negotiation and enforcement of this
Agreement shall be paid by NAC.

                                   Page 3 of 4

<PAGE>   4

IN WITNESS WHEREOF, NAC and Howard have executed this Agreement, NAC by its duly
authorized President, on the date first written above.

                                      NATIONAL AUTO CREDIT, INC.

                                      BY /s/Allen D. Rice
                                         ------------------------------

                                      BY /s/Davida S. Howard
                                         ------------------------------
                                         Davida S. Howard<PAGE>   1
                                                                  CONFORMED COPY

                                  WAIVER NO. 2

                  WAIVER NO. 2, dated as of February 14, 2000 (the "Second
Waiver"), to the Credit Agreement, dated as of December 4, 1998, as amended by
the Waiver, dated as of January 19, 1999, and the Amendment No. 1 and Consent,
dated as of October 13, 1999, and as amended, supplemented or modified from time
to time (the "Credit Agreement") among THE SCOTTS COMPANY, an Ohio corporation
(the "Borrower" or "Scotts"), OM Scott International Investments Ltd., Miracle
Garden Care Limited, Scotts Holdings Limited, Hyponex Corporation, Scotts'
Miracle-Gro Products, Inc., Scotts-Sierra Horticultural Products Company,
Republic Tool & Manufacturing Corp., Scotts-Sierra Investments, Inc., Scotts
France Holdings SARL, Scotts Holding GmbH, Scotts Celaflor GmbH & Co. KG, Scotts
France SARL, Scotts Asef BVBA, f/k/a Scotts Belgium 2 BVBA, The Scotts Company
(UK) Ltd., Scotts Canada Ltd., Scotts Europe B.V., ASEF B.V., Scotts Australia
PTY Ltd., and the other subsidiaries of the Borrower who are also borrowers from
time to time under the Credit Agreement (the "Subsidiary Borrowers"), the
several banks and other financial institutions from time to time parties to the
Credit Agreement (the "Lenders"), THE CHASE MANHATTAN BANK, a New York banking
corporation (together with its banking affiliates, "Chase"), as agent for the
Lenders (in such capacity, the "Administrative Agent"), SALOMON SMITH BARNEY,
INC., as syndication agent (the "Syndication Agent"), CREDIT LYONNAIS CHICAGO
BRANCH (together with its banking affiliates, "Credit Lyonnais") and BANK ONE,
MICHIGAN, as successor to NBD BANK, as co-documentation agents (the
"Co-Documentation Agents"), and Chase Securities Inc., as lead arranger (the
"Lead Arranger") and as the book manager (the "Book Manager").

                              W I T N E S S E T H :
                              - - - - - - - - - -

                  WHEREAS, subsection 6.11 of the Credit Agreement, Maintenance
of Consolidated Net Worth, sets forth a formula which required that Borrower's
Consolidated Net Worth (as defined in the Credit Agreement) be in an amount of
not less than $385,500,000 as of the last day of Borrower's fiscal quarter
ending January 1, 2000. Borrower reports that its Consolidated Net Worth as of
the last day of such fiscal quarter was $383,100,000;

                  WHEREAS, the Borrower has requested that the Required Lenders
waive, with respect to the fiscal quarter ending January 1, 2000, the
requirement under subsection 6.11 of the Credit Agreement that the Borrower
maintain its Consolidated Net Worth above the amount described herein; and

                  WHEREAS, the Required Lenders have agreed to waive such
requirement with respect to such period but only on the terms and subject to the
conditions set forth herein;

                  NOW, THEREFORE, in consideration of the premises and of the
mutual agreements herein contained, the parties hereto agree as follows:

                  1. Defined Terms. Unless otherwise noted, capitalized terms
have the meanings given to them in the Credit Agreement.
<PAGE>   2
                                                                               2

                  2. Compliance with Subsection 6.11 (Maintenance of
Consolidated Net Worth). The Required Lenders hereby waive the requirements of
subsection 6.11 of the Credit Agreement with respect to the fiscal quarter
ending January 1, 2000; provided that the Borrower's Consolidated Net Worth as
of the last day of such fiscal quarter was not less than $383,000,000.

                  3. Representations and Warranties. On and as of the date
hereof, and after giving effect to this Second Waiver, the Borrower hereby
confirms, reaffirms and restates the representations and warranties set forth in
Section 4 of the Credit Agreement mutatis mutandis, and to the extent that such
representations and warranties expressly relate to a specific earlier date in
which case the Borrower hereby confirms, reaffirms and restates such
representations and warranties as of such earlier date.

                  4. Conditions to Effectiveness. This Second Waiver shall
become effective as of the date the Administrative Agent receives counterparts
of this Second Waiver, duly executed and delivered by the Borrower, the
Administrative Agent and the Required Lenders.

                  5. Continuing Effect; No Other Waiver. Except as expressly
waived hereby, all of the terms and provisions of the Credit Agreement are and
shall remain in full force and effect. The waiver provided for herein is limited
to the specific subsections of the Credit Agreement specified herein and shall
not constitute an waiver of, or an indication of any Lender's willingness to
waive, any other provisions of the Credit Agreement or the same subsections for
any other date or time period (whether or not such other provisions or
compliance with such subsections for another date or time period are affected by
the circumstances addressed in this Second Waiver).

                  6. Expenses. The Borrower agrees to pay and reimburse the
Administrative Agent for all its reasonable costs and expenses incurred in
connection with the preparation and delivery of this Second Waiver, including,
without limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent.

                  7. GOVERNING LAW. THIS SECOND WAIVER SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                  8. Counterparts. This Second Waiver may be executed by the
parties hereto in any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.
<PAGE>   3
                  IN WITNESS WHEREOF, the parties hereto have caused this Second
Waiver to be duly executed and delivered by their proper and duly authorized
officers as of the day and year first above written.

                       THE SCOTTS COMPANY

                       By:  /s/ Rebecca J. Bruening
                           ----------------------------------------------------
                            Title: Vice President, Corporate Treasurer

                       SALOMON SMITH BARNEY, INC., as Syndication
                       Agent and as a Lender

                       By:  /s/ B. Crook
                           ----------------------------------------------------
                            Title: Managing Director

                       CREDIT LYONNAIS CHICAGO BRANCH, as Co-Documentation Agent
                       and as a Lender

                       By:  /s/ Mary Ann Klemm
                           ----------------------------------------------------
                            Title: Vice President

                       BANK ONE, MICHIGAN, as successor to
                       NBD BANK, as Co-Documentation Agent and as a Lender

                       By:  /s/ Thomas E. Redmond
                           ----------------------------------------------------
                            Title:  Managing Director

                       THE CHASE MANHATTAN BANK, as Administrative
                       Agent and as a Lender

                       By:  /s/ Randolph Cates
                           ----------------------------------------------------
                            Title:  Vice President
<PAGE>   4
                       ABN AMRO BANK N.V., Pittsburgh

                       By:  /s/ Patrick Pastore    /s/ Gregory Amoroso
                           ----------------------------------------------------
                            Title: Vice President  Senior Vice President

                       AERIES - II FINANCE LTD.

                       By:  /s/ Greg Stoeckle
                           ----------------------------------------------------
                            Title: Authorized Signatory

                       ALLIANCE INVESTMENT OPPORTUNITIES

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       ALLSTATE LIFE INSURANCE CO.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       ARES LEVERAGED INVESTMENT FUND II, L.P.

                       By:  /s/ Seth Brufsky
                           ----------------------------------------------------
                            Title: Vice President

                       ATHENA CDO, LIMITED

                       By:   Pacific Investment Management Company as
                             its investment advisor

                       By:   PIMCO Management Inc., a general partner

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:
<PAGE>   5
                       BHF (USA) CAPITAL CORPORATION

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       BHF BANK AKTIENGESELLSCHAFT

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       BW CAPITAL MARKETS, INC.

                       By:  /s/ Philip Waldrop        Richard P. Urfer
                           ----------------------------------------------------
                            Title: Vice President     President

                       BALANCED HIGH YIELD FUND II LTD.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       BANK AUSTRIA

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       BANK OF AMERICA

                       By:  /s/ Gretchen Spoo
                           ----------------------------------------------------
                            Title: Vice President

                       BANK OF HAWAII

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:
<PAGE>   6
                       BANK OF MONTREAL

                       By:  /s/ Brian L. Banks
                           ----------------------------------------------------
                            Title: Director

                       THE BANK OF NEW YORK

                       By:  /s/ Thomas McCrohan
                           ----------------------------------------------------
                            Title: Vice President

                       THE BANK OF NOVA SCOTIA

                       By:  /s/ F.C.H. Ashby
                           ----------------------------------------------------
                            Title: Senior Manager Loan Operations

                       BANK OF TOKYO-MITSUBISHI TRUST COMPANY

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       BANQUE NATIONALE DE PARIS

                       By:  /s/ Arnaud Collin de Bocage
                           ----------------------------------------------------
                            Title: Executive Vice President & General
                                   Manager

                       BANQUE WORMS CAPITAL CORPORATION

                       By:  /s/ Michael M. Flemming     F. Gamet
                           ----------------------------------------------------
                            Title: Vice President & General Counsel
                                   Senior Vice President

                       BLACK DIAMOND CLO 1998-1 LTD.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:
<PAGE>   7
                       BOEING CAPITAL CORPORATION

                       By:  /s/ James C. Hammersmith
                           ----------------------------------------------------
                            Title: Senior Documentation Officer

                       CIT GROUP/EQUIPMENT FINANCING, INC.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       CAPTIVA III FINANCE LTD.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       CARAVELLE INVESTMENT FUND, L.L.C.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       CERES FINANCE, LTD.

                       By:  /s/ Gregory Stoeckle
                           ----------------------------------------------------
                            Title: Authorized Signatory

                       CITICORP USA, INC.

                       By:  /s/ Nicholas T. Erni
                           ----------------------------------------------------
                            Title: Attorney in Fact

                       COMERICA BANK, Detroit

                       By:  /s/ Anthony L. Davis
                           ----------------------------------------------------
                            Title: Assistant Vice President
<PAGE>   8
                       CREDIT AGRICOLE INDOSUEZ, Chicago

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       CREDIT LYONNAIS

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       CYPRESSTREE INSTITUTIONAL FUND, LLC

                       By: CypressTree Investment Management Company,
                           Inc. its Managing Member

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       CYPRESSTREE INVESTMENT FUND, LLC

                       By: CypressTree Investment Management Company,
                           Inc. its Managing Member

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       DELANO COMPANY

                       By: Pacific Investment Management Company as its
                           investment advisor

                       By: PIMCO Management Inc., a general partner

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:
<PAGE>   9
                       DRESDNER BANK, AG

                       By:  /s/ A. Richard Morris         Ken Hamilton
                           ----------------------------------------------------
                            Title: First Vice President   Senior Vice President

                       EATON VANCE SENIOR INCOME TRUST

                       By:  /s/ Payson F. Swaffield
                           ----------------------------------------------------
                            Title: Vice President

                       ERSTE BANK

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       FIFTH THIRD BANK OF COLUMBUS

                       By:  /s/ Mark Ransom
                           ----------------------------------------------------
                            Title: Vice President

                       FIRST UNION NATIONAL BANK

                       By:  /s/ Andrew Payne
                           ----------------------------------------------------
                            Title: Vice President

                       FLEET NATIONAL BANK

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:
<PAGE>   10
                       FOOTHILL INCOME TRUST,  L.P.

                       By:  /s/ Dennis Ascher
                           ----------------------------------------------------
                            Title: Managing Member

                       FRANKLIN FLOATING RATE TRUST

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       FREEMONT INVESTMENT & LOAN

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       GENERAL ELECTRIC CAPITAL CORP.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       HARRIS TRUST AND SAVINGS BANK

                       By:  /s/ C. Scott Place
                           ----------------------------------------------------
                            Title:  Vice President

                       HELLER FINANCIAL INC.

                       By:  /s/ Linda W. Wolf
                           ----------------------------------------------------
                            Title: Senior Vice President

                       THE HUNTINGTON NATIONAL BANK

                       By:  /s/ J. Stephen Bennett
                           ----------------------------------------------------
                            Title: Vice President
<PAGE>   11
                       IKB DEUTSCHE INDUSTRIEBANK

                       By:  /s/ Manford Ziwey
                           ----------------------------------------------------
                            Title: Director

                       INDOSUEZ CAPITAL

                       By:  /s/ Melissa Marano
                           ----------------------------------------------------
                            Title: Vice President

                       INDOSUEZ CAPITAL FUNDING IIA, LTD.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       KZH APPALOOSA LLC

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       KZH BDC LLC

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       KZH CRESCENT 3 LLC

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       KZH III LLC

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:
<PAGE>   12

                       KZH ING-3 LLC

                       By:  /s/ Susan Lee
                           ----------------------------------------------------
                            Title: Authorized Agent

                       KZH PAMCO LLC

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       KZH RIVERSIDE LLC

                       By:  /s/ Susan lee
                           ----------------------------------------------------
                            Title:  Authorized Agent

                       KZH WATERSIDE LLC

                       By:  /s/ Susan Lee
                           ----------------------------------------------------
                            Title:  Authorized Agent

                       KZH CNC LLC

                       By:  /s/ Susan Lee
                           ----------------------------------------------------
                            Title:  Authorized Agent

                       KZH-CYPRESSTREE-1 LLC

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:
<PAGE>   13
                       KZH-ING-2 LLC

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       KZH-SOLEIL-2 LLC

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       KEY BANK NATIONAL ASSOCIATION

                       By:  /s/ Brendan Lawlor
                           ----------------------------------------------------
                            Title: Vice President

                       LANDESBANK RHEINLAND-PFALZ GIR

                       By:  /s/ Gilsdorf                       Detlef Krejoi
                           ----------------------------------------------------
                            Title: Assistant Vice President    Manager

                       LEHMAN COMMERCIAL PAPER INC.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       ML CBO IV (CAYMAN) LTD.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:
<PAGE>   14
                       ML CLO XII PILGRIM AMERICA

                       By:   Pilgrim Investments, Inc., as its investment
                             manager

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       ML CLO XX PILGRIM AMERICA

                       By:   Pilgrim Investments, Inc., as its investment
                             manager

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       MSDW PRIME INCOME TRUST

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       MEESPIERSON N.V.

                       By:  /s/ W. Gibson         P. Hanratty
                           ----------------------------------------------------
                            Title: Manager        Head of Acquisition & Finance

                       MERRILL LYNCH PRIME RATE PORTFOLIO

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       MERRILL LYNCH SENIOR FLOATING RATE FUND

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:
<PAGE>   15
                       METROPOLITAN LIFE INSURANCE CO.

                       By:  /s/ James R. Dingler
                           ----------------------------------------------------
                            Title: Director

                       MONUMENTAL LIFE INSURANCE COMPANY

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       MOUNTAIN CLO TRUST

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       MOUNTAIN CAPITAL CLO I, LTD.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       BANK ONE, MICHIGAN, as successor to
                       NBD BANK

                       By:  /s/ Thomas E. Redmond
                           ----------------------------------------------------
                            Title: Managing Director

                       NATIONAL CITY BANK

                       By:  /s/ David B. Yates
                           ----------------------------------------------------
                            Title: Vice President
<PAGE>   16
                       NATIONAL WESTMINSTER BANK, PLC

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       NORSE CBO, LTD.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       NORTH AMERICAN SENIOR FLOATING RATE FUND

                       By: CypressTree Investment Management
                           Company, Inc. as Portfolio Manager

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       ORIX USA CORPORATION

                       By:  /s/ Hiroyuki Miyauckhi
                           ----------------------------------------------------
                            Title: EVP, Corporate Finance Group

                       OAK HILL SECURITIES FUND, L.P.

                       By:   Oak Hill Securities GenPar, L.P. its General
                             Partner

                       By:   Oak Hill Securities MGP, Inc. its General
                             Partner

                       By:  /s/ Scott Krase
                           ----------------------------------------------------
                            Title: Vice President

                       OASIS COLLATERALIZED HIGH INCOME

                       By:  /s/ Gregory Stoeckle
                           ----------------------------------------------------
                            Title: Authorized Signatory
<PAGE>   17
                       OCTAGON LOAN TRUST

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       OLYMPIC FUNDING TRUST, SERIES 1999-1

                       By:  /s/ Kelly Walker
                           ----------------------------------------------------
                            Title: Authorized Agent

                       OSPREY INVESTMENTS PORTFOLIO

                       By:  /s/ Mike Regan
                           ----------------------------------------------------
                            Title: Vice President

                       OXFORD STRATEGIC INCOME FUND

                       By:   EATON VANCE MANAGEMENT AS INVESTMENT ADVISOR

                       By:  /s/ Payson F. Swaffield
                           ----------------------------------------------------
                            Title: Vice President

                       PACIFICA PARTNERS I, L.P.

                       By:  /s/ Thomas Colwell
                           ----------------------------------------------------
                            Title: Vice President

                       PARIBAS

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       PINEHURST TRADING, INC.

                       By:  /s/  Kelly Walker
                           ----------------------------------------------------
                            Title: Vice President
<PAGE>   18
                       COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
                       "RABOBANK NEDERLAND", Utrecht Branch

                       By:  /s/ Michael Butz           Nancy O'Connor
                           ----------------------------------------------------
                            Title: Vice President      Vice President

                       COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
                       "RABOBANK NEDERLAND", Utrecht Branch

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       SKM LIBERTYVIEW CBO I LTD.

                       By:  /s/ Kenneth Klegar
                           ----------------------------------------------------
                            Title: Authorized Signatory

                       SANKATY HIGH YIELD ASSET PARTNERS

                       By:  /s/ Diane Exter
                           ----------------------------------------------------
                            Title: Executive Vice President & Portfolio Manager

                       SCOTIABANC, INC.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       SENIOR DEBT PORTFOLIO

                       By:   Boston Management and Research
                             as Investment Advisor

                       By:  /s/ Payson Swaffield
                           ----------------------------------------------------
                            Title: Vice President
<PAGE>   19
                       SUNTRUST BANK, CENTRAL FLORIDA, N.A.

                       By:  /s/ Stephen Leister
                           ----------------------------------------------------
                            Title: Vice President

                       TORONTO DOMINION (TEXAS) INC.

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       TRAVELERS INSURANCE COMPANY

                       By:
                           ----------------------------------------------------
                            Name:
                            Title:

                       VAN KAMPEN CLO I, LIMITED

                       By:   Van Kampen Management Inc., as Collateral Manager

                       By:  /s/ Darvin D. Pierce
                           ----------------------------------------------------
                            Title: Vice President
<PAGE>   20
                           ACKNOWLEDGEMENT AND CONSENT
                           ---------------------------

                In consideration of each Agent's and the Lenders' execution,
delivery and performance of the foregoing Waiver No. 2 (the "Second Waiver"),
each of the undersigned hereby (i) acknowledges the terms and provisions of the
Second Waiver and consents thereto and (ii) confirms and agrees that (x) the
Borrower and Domestic Subsidiary Guarantee and Collateral Agreement (the
"Guarantee and Collateral Agreement) is, and shall continue to be, in full force
and effect and is hereby ratified and confirmed in all respects and shall apply
to the Credit Agreement and (y) the guarantees and all of the Collateral (as
defined in the Guarantee and Collateral Agreement) do, and shall continue to,
secure the payment of all of the Obligations (as defined in the Guarantee and
Collateral Agreement) pursuant to the terms of the Guarantee and Collateral
Agreement. Capitalized terms not otherwise defined herein shall have the
meanings assigned to them in the Credit Agreement referred to in the Second
Waiver to which this Acknowledgment and Consent is attached.

                                           SCOTTS-SIERRA INVESTMENTS, INC.
                                           SCOTTS PROFESSIONAL PRODUCTS CO.
                                           SCOTTS PRODUCTS CO.
                                           OMS INVESTMENTS, INC.
                                           MIRACLE-GRO LAWN PRODUCTS, INC.
                                           MIRACLE-GRO PRODUCTS LTD.
                                           SCOTTS-SIERRA CROP PROTECTION
                                             COMPANY
                                           OLD FORT FINANCIAL CORP.
                                           EARTHGRO, INC.
                                           SANFORD SCIENTIFIC, INC.
                                           EG SYSTEMS, INC.
                                           SWISS FARMS PRODUCTS, INC.

                                           By:  /s/ Rebecca J. Bruening
                                               -------------------------------
                                                Title: Vice President

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