Document:

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                                                                   Exhibit 10.11

                                                                       EXHIBIT G

                               GUARANTY AGREEMENT

GUARANTY, dated as of November 15, 2004, made by DAVEL COMMUNICATIONS, INC., a
Delaware corporation, DAVEL FINANCING COMPANY, LLC, a Delaware limited liability
company, PHONETEL TECHNOLOGIES, INC., an Ohio corporation and CHEROKEE
COMMUNICATIONS, INC., a Texas corporation, and each of the direct and indirect
Subsidiaries of the foregoing Persons who have executed this Guaranty on the
signature page below (each, a "GUARANTOR" and collectively, the "GUARANTORS"),
in favor of AIRLIE OPPORTUNITY MASTER FUND LTD., a Cayman Islands company
("AIRLIE"), on behalf of itself and any successor Lender under the Credit
Agreement referred to below (with Airlie, the "LENDER"), and CORNELL CAPITAL
PARTNERS, L.P., a Delaware limited partnership ("CORNELL CAPITAL"). The Lender
and Cornell Capital are sometimes hereinafter individually referred to as a
"CREDIT PARTY" or collectively as the "CREDIT PARTIES."

                                  WITNESSETH:

WHEREAS, Cornell Capital has heretofore made Cornell Capital Loans aggregating
$13,200,000 in principal amount to MOBILEPRO CORP., a Delaware corporation
("MOBILEPRO"), representing the Cornell Capital Obligations; and

WHEREAS, MobilePro and Davel Acquisition Corp., a Delaware corporation
(collectively, the "BORROWERS"), the Lender, and each Guarantor are parties to a
Credit Agreement, dated as of November 15, 2004 (such agreement, as amended,
restated, supplemented or otherwise modified from time to time, being
hereinafter referred to as the "CREDIT AGREEMENT");

WHEREAS, pursuant to the Credit Agreement, the Lender has agreed to extend
credit to the Borrowers consisting of a term loan of $15,200,000, the proceeds
of which are to be used by the Borrowers to acquire Davel Credit Parties Debt
and the Cerebus Subordinated Debt (as defined in the Credit Agreement) owed by
each Guarantors;

WHEREAS, pursuant to the Davel Credit Parties Forebearance Agreement, the Lender
has agreed to forebear from exercising its rights and remedies under the Davel
Credit Parties Debt, the Cerebus Subordinated Debt and the Selling Lenders Loan
Documents; and

WHEREAS, pursuant to Section 1.05(f) of the Credit Agreement, each of each
Guarantors is required to execute and deliver to the Lender a guaranty
guaranteeing all Loans and all other Obligations under the Credit Agreement;

WHEREAS, the Guarantors, as direct and indirect Subsidiaries of MobilePro
immediately following the date of this Agreement will receive direct benefits
from Cornell Capital continuing to provide equity financing to MobilePro under
the Cornell Capital Equity Line of Credit Agreements; and

WHEREAS, each Guarantor has determined that its execution, delivery and
performance of this Guaranty directly benefit, and are within the corporate
purposes and in the best interests of, each Guarantor; and

WHEREAS, the Purchaser directly or indirectly owns 95.2% of the issued and
outstanding shares of capital stock of each Guarantor.

NOW, THEREFORE, in consideration of the premises and the agreements herein and
in order to induce the Lender to enter into the Credit Agreement and to make and
maintain the Loan pursuant thereto, each Guarantor hereby agrees with the Lender
as follows:

         Section 1. Definitions. Reference is hereby made to the Credit
Agreement for a statement of the terms thereof. All terms used in this Guaranty
which are defined in the Credit Agreement and not otherwise defined

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herein shall have the same meanings herein as set forth therein.

         Section 2. Guaranty. Each Guarantors does hereby jointly and severally
(a) irrevocably, absolutely and unconditionally guaranty the prompt payment by
the Borrowers, as and when due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise), of (i) all of the
Obligations from time to time owing in respect of the Credit Agreement or any
other Loan Document, and (ii) all of the Cornell Capital Obligations, whether
for principal, interest (including, without limitation, all interest that
accrues after the commencement of any Insolvency Proceeding with respect to the
Borrowers, whether or not a claim for post-filing interest is allowed in such
proceeding), fees, commissions, expense reimbursements, indemnifications or
otherwise, and whether accruing before or subsequent to the commencement of any
Insolvency Proceeding with respect to the Borrowers (notwithstanding the
operation of the automatic stay under Section 362(a) of the U.S. Bankruptcy
Code), and the due performance and observance by the Borrowers of its other
obligations now or hereafter existing in respect of the Credit Agreement, and
other Loan Documents or the Cornell Capital Loans (collectively, the "GUARANTEED
OBLIGATIONS"), and (ii) agrees to pay any and all expenses (including counsel
fees and expenses) incurred by the Lender in enforcing any rights under this
Guaranty. Without limiting the generality of the foregoing, each Guarantor's
liability shall extend to all amounts that constitute part of the Guaranteed
Obligations and would be owed by the Borrowers to the Lender under any of the
Credit Agreement, and other Loan Documents or the Cornell Capital Loans
(individually and collectively, a "CREDIT DOCUMENT") but for the fact that they
are unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving any Credit Party.

         Section 3. Guaranty Absolute; Continuing Guaranty; Assignments.

         (a) Each Guarantor hereby jointly and severally guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of the
Credit Documents, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of the
Lender with respect thereto. Each Guarantor agrees that its guarantee
constitutes a guaranty of payment when due and not of collection and waives any
right to require that any resort be made by the Lender to any Collateral. The
obligations of each Guarantor under this Guaranty are independent of the
obligations under the Credit Agreement and the other Credit Documents, and a
separate action or actions may be brought and prosecuted against each Guarantor
to enforce this Guaranty, irrespective of whether any action is brought against
any Credit Party or whether any Credit Party is joined in any such action or
actions. The liability of each Guarantor under this Guaranty shall be
irrevocable, absolute and unconditional irrespective of, and each Guarantor
hereby irrevocably waives any defenses it may now or hereafter have in any way
relating to, any or all of the following:

                  (i) any lack of validity or enforceability of any Credit
Document or any agreement or instrument relating thereto;

                  (ii) any change in the time, manner or place of payment of, or
in any other term in respect of, all or any of the Guaranteed Obligations, or
any other amendment or waiver of or any consent to departure from any Credit
Document, including, without limitation, any increase in the Guaranteed
Obligations resulting from the extension of additional credit to any Credit
Party or otherwise;

                  (iii) any taking, exchange, release or non-perfection of any
Collateral, or any taking, release or amendment or waiver of or consent to
departure from any other guaranty, for all or any of the Guaranteed Obligations;

                  (iv) the existence of any claim, set-off, defense or other
right that each Guarantor may have against any Person, including, without
limitation, the Lender;

                  (v) any change, restructuring or termination of the corporate,
limited liability company or partnership structure or existence of any Credit
Party; or

                  (vi) any other circumstance (including any statute of
limitations) or any existence of or

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reliance on any representation by the Lender that might otherwise constitute a
defense available to, or a discharge of, any Credit Party or any other Guarantor
or surety.

This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by the Lender or any other Person upon the
insolvency, bankruptcy or reorganization of any Credit Party or otherwise, all
as though such payment had not been made.

         (b) This Guaranty is a continuing guaranty and shall (i) remain in full
force and effect until the later of (x) the payment in full, whether in cash or
securities, as the case may be, of the Guaranteed Obligations and all other
amounts payable under this Guaranty and (y) the Final Maturity Date, (ii) be
binding upon each Guarantor, its successors and assigns and (iii) inure to the
benefit of and be enforceable by the Lender and their successors, pledgees,
transferees and assigns. Without limiting the generality of the foregoing clause
(iii), the Lender may pledge, assign or otherwise transfer all or any portion of
its rights and obligations under any Credit Document to any other Person, and
such other Person shall thereupon become vested with all the benefits in respect
thereof granted to such Lender herein or otherwise, in each case as provided in
the Credit Agreement.

         Section 4. Waivers. Each Guarantor hereby waives, to the full extent
permitted by applicable law, (i) promptness and diligence; (ii) notice of
acceptance and notice of the incurrence of any Obligation by any Borrowers;
(iii) notice of any actions taken by Lender, any Borrowers, any Credit Party or
the Lender under any Credit Document or any other agreement or instrument
related thereto; (iv) all other notices, demands and protests, and all other
formalities of every kind in connection with the enforcement of the Obligations
or of the obligations of each Guarantor hereunder, the omission of or delay in
which, but for the provisions of this Section 4, might constitute grounds for
relieving each Guarantor of its obligations hereunder; (v) any right to compel
or direct the Lender to seek payment or recovery of any amounts owed under this
Guaranty from any one particular fund or source; (vi) any requirement that the
Lender protect, secure, perfect or insure any security interest or Lien or any
property subject thereto or exhaust any right or take any action against any
Borrowers, any other Credit Party or any other Person or any Collateral; and
(vii) any other defense available to each Guarantor. Each Guarantor acknowledges
that it will receive direct and indirect benefits from the financing
arrangements contemplated herein and that the waiver set forth in this Section 4
is knowingly made in contemplation of such benefits. Each Guarantor hereby
waives any right to revoke this Guaranty, and acknowledges that this Guaranty is
continuing in nature and applies to all Guaranteed Obligations, whether existing
now or in the future.

         Section 5. Subrogation.

         (a) Until the final payment in cash and securities pursuant to the
terms of the Credit Agreement and performance in full of all of the Obligations,
each Guarantor shall not exercise any rights against the Borrowers or any other
Guarantor arising as a result of payment by the Borrowers or such Guarantor
hereunder, by way of subrogation, reimbursement, restitution, contribution or
otherwise, and will not prove any claim in competition with the Lender in
respect of any payment hereunder in any Insolvency Proceedings; each Guarantor
will not claim any set-off, recoupment or counterclaim against the Borrowers or
any other Guarantor in respect of any liability of each Guarantor to such
Borrowers or Guarantor; and each Guarantor and the Borrowers waives any benefit
of and any right to participate in any collateral security which may be held by
the Lender.

         (b) The payment of any amounts due with respect to any Indebtedness of
the Borrowers or each Guarantor for money borrowed or credit received now or
hereafter owed to each Guarantor is hereby subordinated to the prior payment in
full of all of the Obligations. Each Guarantor agrees that, after the occurrence
of any default in the payment or performance of any of the Obligations, each
Guarantor will not demand, sue for or otherwise attempt to collect any such
indebtedness of the Borrowers or other Guarantor to each Guarantor until all of
the Obligations shall have been paid in full. If, notwithstanding the foregoing
sentence, each Guarantor shall collect, enforce or receive any amounts in
respect of such indebtedness while any Obligations are still outstanding, such
amounts shall be collected, enforced and received by each Guarantor as trustee
for the Lender and be paid over to the Lender, on account of the Obligations
without affecting in any manner the liability of each Guarantor under the other
provisions of this Guaranty.

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         Section 6. Representations, Warranties and Covenants. Each Guarantor
hereby represents and warrants as follows:

         (a) Each Guarantor (i) is a corporation or other entity, duly
organized, validly existing and in good standing under the laws of the state or
other applicable jurisdiction of its organization as set forth on the first page
hereof, (ii) has all requisite power and authority to conduct its business as
now conducted and as presently contemplated and to execute and deliver this
Guaranty and each other Credit Document to which each Guarantor is a party, and
to consummate the transactions contemplated hereby and thereby and (iii) is duly
qualified to do business and is in good standing in each jurisdiction in which
the character of the properties owned or leased by it or in which the
transaction of its business makes such qualification necessary and where the
failure to be so qualified could reasonably be expected to have a Material
Adverse Effect.

         (b) The execution, delivery and performance by each Guarantor of this
Guaranty and each other Credit Document to which each Guarantor is a party (i)
have been duly authorized by all necessary action, (ii) do not and will not
contravene its charter or by-laws, or any applicable law or regulation or any
contractual restriction binding on or otherwise affecting each Guarantor or its
properties, (iii) do not and will not result in or require the creation of any
Lien (other than pursuant to any Credit Document) upon or with respect to any of
its properties, and (iv) do not and will not result in any default,
noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of
any permit, license, authorization or approval applicable to it or its
operations or any of its properties.

         (c) No authorization or approval or other action by, and no notice to
or filing with, any Governmental Agency is required in connection with the due
execution, delivery and performance by each Guarantor of this Guaranty or any of
the other Credit Documents to which each Guarantor is a party, except for the
filing of any UCC financing statement or such other registrations, filings or
recordings as may be necessary to perfect the Lien purported to be created by
any Credit Documents to which each Guarantor is a party.

         (d) Each of this Guaranty and the other Credit Documents to which each
Guarantor is or will be a party, when delivered, will be, a legal, valid and
binding obligation of each Guarantor, enforceable against each Guarantor in
accordance with its terms, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws.

         (e) (i) There are no pending or written notices threatening any action,
suit or proceeding affecting each Guarantor before any court or other
Governmental Agency or any arbitrator that (x) if adversely determined could
reasonably be expected to have a Material Adverse Effect or (y) relates to this
Guaranty or any of the other Credit Documents to which each Guarantor is a party
or any transaction contemplated hereby or thereby and (ii) as of the date
hereof, each Guarantor does not hold any commercial tort claims in respect of
which a claim has been filed in a court of law or a written notice by an
attorney has been given to a potential defendant.

         (f) Each Guarantor (i) has read and understands the terms and
conditions of the Credit Agreement and the other Credit Documents, and (ii) now
has and will continue to have independent means of obtaining information
concerning the affairs, financial condition and business of the other Credit
Parties, and has no need of, or right to obtain from the Lender, any credit or
other information concerning the affairs, financial condition or business of the
other Credit Parties that may come under the control of the Lender.

         Section 7. Right of Set-off. Upon the occurrence and during the
continuance of any Event of Default, the Lender may, and are hereby authorized
to, at any time and from time to time, without notice to each Guarantor (any
such notice being expressly waived by each Guarantor) and to the fullest extent
permitted by law, set-off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other indebtedness at
any time owing by the Lender to or for the credit or the account of each
Guarantor against any and all obligations of each Guarantor now or hereafter
existing under this Guaranty or any other Credit

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Document, irrespective of whether or not the Lender shall have made any demand
under this Guaranty or any other Credit Document and although such obligations
may be contingent or unmatured. The Lender agrees to notify each Guarantor
promptly after any such set-off and application made by the Lender, provided
that the failure to give such notice shall not affect the validity of such
set-off and application. The rights of the Lender under this Section 7 are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Lender may have under this Guaranty or any other
Credit Document in law or otherwise.

         Section 8. Notices, Etc. All notices and other communications provided
for hereunder shall be in writing and shall be mailed (by certified mail,
postage prepaid and return receipt requested), telecopied or delivered, if to
each Guarantor, to it at its address set forth on the signature page hereto, or
if to Lender, to it at its address set forth in the Credit Agreement; or as to
either such Person at such other address as shall be designated by such Person
in a written notice to such other Person complying as to delivery with the terms
of this Section 8. All such notices and other communications shall be effective
(i) if mailed, when received or three days after deposited in the mail,
whichever occurs first, (ii) if telecopied, when transmitted and confirmation is
received, or (iii) if delivered, upon delivery.

         Section 9. CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE. ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY OTHER CREDIT
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF
NEW YORK OR OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE GUARANTOR HEREBY
IRREVOCABLY ACCEPTS IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY,
THE JURISDICTION OF THE AFORESAID COURTS. THE GUARANTOR HEREBY IRREVOCABLY
APPOINTS THE SECRETARY OF STATE OF THE STATE OF NEW YORK AS ITS AGENT FOR
SERVICE OF PROCESS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING AND FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED
COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY
REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, CARE OF EITHER MOBILEPRO CORP. OR
DAVEL COMMUNICATIONS, INC. AT ITS ADDRESS FOR NOTICES AS SET FORTH IN THE CREDIT
AGREEMENT AND TO THE SECRETARY OF STATE OF THE STATE OF NEW YORK, SUCH SERVICE
TO BECOME EFFECTIVE TEN (10) DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL
AFFECT THE RIGHT OF THE LENDER TO SERVICE OF PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
THE GUARANTOR IN ANY OTHER JURISDICTION. THE GUARANTOR HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY
SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT
THE GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY
COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT
PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO
ITSELF OR ITS PROPERTY, THE GUARANTOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN
RESPECT OF ITS OBLIGATIONS UNDER THIS GUARANTY AND THE OTHER CREDIT DOCUMENTS.

         SECTION 10. WAIVER OF JURY TRIAL, ETC. THE GUARANTOR HEREBY WAIVES ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING
ANY RIGHTS UNDER THIS GUARANTY OR THE OTHER CREDIT DOCUMENTS, OR UNDER ANY
AMENDMENT, WAIVER, CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR
WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH, OR
ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH THIS
GUARANTY OR THE OTHER CREDIT DOCUMENTS, AND AGREES THAT ANY SUCH ACTION,
PROCEEDING OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
THE GUARANTOR CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT OR ATTORNEY OF
THE LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE LENDER WOULD NOT,
IN THE

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EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING
WAIVERS. THE GUARANTOR HEREBY ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE LENDER ENTERING INTO THIS AGREEMENT.

         Section 11. Taxes.

         (a) All payments made by each Guarantor hereunder, under any Note or
under any other Credit Document will be made without setoff, counterclaim or
other defense. All such payments will be made free and clear of, and without
deduction or withholding for, any present or future taxes, levies, imposts,
duties, fees, assessments or other charges of whatever nature now or hereafter
imposed by any jurisdiction or by any political subdivision or taxing authority
(collectively, "TAXES") thereof or therein with respect to such payments (but
excluding any Tax imposed on or measured by the net income or net profits of a
Lender imposed on it pursuant to the laws of the jurisdiction in which it is
organized or the jurisdiction in which the principal office or applicable
lending office of the Lender is located). If any Guarantor shall be required to
deduct or to withhold any Taxes from or in respect of any amount payable
hereunder or under any other Credit Document,

                  (i) the amount so payable shall be increased so that after
making all required deductions and withholdings (including Taxes on amounts
payable pursuant to this sentence) the Lender, as the case may be, receive an
amount equal to the sum they would have received had no such deduction or
withholding been made,

                  (ii) each Guarantor shall make such deduction or withholding,

                  (iii) each Guarantor shall pay the full amount deducted or
withheld to the relevant taxation authority in accordance with applicable law,
and

                  (iv) as promptly as possible thereafter, each Guarantor shall
send the Lender an official receipt (or, if an official receipt is not
available, such other documentation as shall be satisfactory to the Lender, as
the case may be) evidencing payment of the amount or amounts so deducted or
withheld. In addition, each Guarantor agrees to pay any present or future taxes,
charges or similar levies which arise from any payment made hereunder or from
the execution, delivery, performance, recordation or filing of, or otherwise
with respect to, this Agreement or any other Credit Document.

         (b) Each Guarantor hereby indemnifies and agrees to hold the Lender
harmless from and against Taxes (including, without limitation, any Taxes
imposed by any jurisdiction on amounts payable under this Section 11) paid by
the Lender and any liability (including penalties, interest and expenses for
nonpayment, late payment or otherwise) arising therefrom or with respect
thereto, whether or not such Taxes were correctly or legally asserted. Such
indemnification shall be paid within 10 days from the date on which the Lender
makes written demand therefor, which demand shall identify in reasonable detail
the nature and amount of such Taxes.

         (c) If each Guarantor fails to perform any of its obligations under
this Section 11, each Guarantor shall indemnify the Lender for any taxes,
interest or penalties that may become payable as a result of any such failure.
The obligations of each Guarantor under this Section 11 shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

         Section 12. Miscellaneous.

         (a) Each Guarantor will make each payment hereunder in lawful money of
the United States of America and in immediately available funds to the Lender,
at such address specified by Lender from time to time by notice to each
Guarantor.

         (b) No amendment of any provision of this Guaranty shall be effective
unless it is in writing and signed by each Guarantor and Lender, and no waiver
of any provision of this Guaranty, and no consent to any departure by each
Guarantor therefrom, shall in any event be effective unless the same shall be in
writing and signed

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by each Guarantor and Lender, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

         (c) No failure on the part of the Lender to exercise, and no delay in
exercising, any right hereunder or under any other Credit Document shall operate
as a waiver thereof, nor shall any single or partial exercise of any right
hereunder or under any other Credit Document preclude any other or further
exercise thereof or the exercise of any other right. The rights and remedies of
the Lender provided herein and in the other Credit Documents are cumulative and
are in addition to, and not exclusive of, any rights or remedies provided by
law. The rights of the Lender under any Credit Document against any party
thereto are not conditional or contingent on any attempt by the Lender to
exercise any of their rights under any other Credit Document against such party
or against any other Person.

         (d) Any provision of this Guaranty which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
portions hereof or thereof or affecting the validity or enforceability of such
provision in any other jurisdiction.

         (e) This Guaranty shall (i) be binding on each Guarantor and its
successors and assigns, and (ii) inure, together with all rights and remedies of
the Lender hereunder, to the benefit of the Lender and their respective
successors, transferees and assigns. Without limiting the generality of clause
(ii) of the immediately preceding sentence, the Lender may assign or otherwise
transfer its rights under the Credit Agreement or any other Credit Document to
any other Person, and such other Person shall thereupon become vested with all
of the benefits in respect thereof granted to the Lender herein or otherwise.
None of the rights or obligations of each Guarantor hereunder may be assigned or
otherwise transferred without the prior written consent of Lender.

         (f) This Guaranty and the other Credit Documents reflect the entire
understanding of the transactions contemplated hereby and thereby and shall not
be contradicted or qualified by any other agreement, oral or written, before the
date hereof.

         (g) Section headings herein are included for convenience of reference
only and shall not constitute a part of this Agreement for any other purpose.

         (h) This Guaranty and the other Credit Documents (unless expressly
provided to the contrary in another Credit Document in respect of such other
Credit Document) shall be governed by, and construed in accordance with, the law
of the State of New York applicable to contracts made and to be performed in the
State of New York.

[the balance of this page intentionally left blank]

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IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed by an
officer thereunto duly authorized, as of the date first above written.

DAVEL COMMUNICATIONS, INC.
a Delaware corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

DAVEL FINANCING COMPANY LLC
a Delaware limited liability company

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

PHONETEL TECHNOLOGIES, INC.
an Ohio corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

CHEROKEE COMMUNICATIONS, INC.
a Texas corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

DAVEL COMMUNICATIONS GROUP, INC.,
an Illinois corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

ADTEC COMMUNICATIONS, INC.,
a Florida corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

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CENTRAL PAYPHONE SERVICES, INC.,
a Georgia corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

COMMUNICATIONS CENTRAL INC.,
a Georgia corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

COMMUNICATIONS CENTRAL OF GEORGIA, INC.,
a Georgia corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

DAVEL MEDIA, INC.,
a Delaware corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

DAVEL MEXICO, LTD.,
an Illinois corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

DAVELTEL, INC.,
an Illinois corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

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INTERSTATE COMMUNICATIONS, INC.,
a Georgia corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

INVISION TELECOM, INC.,
a Georgia corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

PEOPLES ACQUISITION CORPORATION,
a Pennsylvania corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

PEOPLES COLLECTORS, INC.,
a Delaware corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

PEOPLES TELEPHONE COMPANY, INC.,
a New York corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

PEOPLES TELEPHONE COMPANY, INC.,
a New Hampshire corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

                                       10
<PAGE>

PTC CELLULAR, INC.,
a Delaware corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

PTC SECURITY SYSTEMS, INC.,
a Florida corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

SILVERADO COMMUNICATION CORP.,
a Colorado corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

TELALEASING INTERPRISES, INC.,
an Illinois corporation

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

T.R.C.A., INC.,
an Illinois corporation.

By: /S/ GEOFFERY B. AMEND
    -----------------------------------
Name:   Geoffery B. Amend
Title:  Executive Vice President

Address:

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                                       11<PAGE>

                                                                    Exhibit 10.1
                              EMPLOYMENT AGREEMENT
                                       and
                             COVENANT NOT TO COMPETE

                  EMPLOYMENT AGREEMENT and COVENANT NOT TO COMPETE (the
"Employment Agreement"), by and between THE SCOTTS COMPANY (the "Company") and
ROBERT F. BERNSTOCK (the "Executive"), effective as of October 1, 2004.

                                   WITNESSETH:

                  WHEREAS, the Executive desires to continue to utilize the
services of the Executive in the new capacities of its President North America,
and Executive Vice President, and the Executive is willing to render such
services; and

                  WHEREAS, the Company and the Executive desire to evidence in
this Employment Agreement the terms under which the Executive will perform such
services;

                  NOW THEREFORE, in consideration of the premises, respective
covenants and agreements of the parties contained in this Employment Agreement,
and intending to be legally bound, the Executive and the Company agree as
follows:

         1.       Title and Duties

                  (a) General. The Executive agrees to continue in the
         employment of the Company on and after October 1, 2004, pursuant to the
         terms of this Employment Agreement. The Executive's titles will be
         President North America and Executive Vice President of the Company.
         The Executive's duties and responsibilities will be as described in the
         Company's Bylaws (as in effect as of the date of this Employment
         Agreement) and the Executive shall at all times report directly to the
         Chief Executive Officer of the Company, or as otherwise agreed by the
         Executive. The Executive will exercise due diligence and reasonable
         care in the performance of the Executive's duties under this Employment
         Agreement. During the Term of this Employment Agreement, a change in
         the Executive's assignments or duties shall not constitute
         "Constructive Termination", as defined in Paragraph 2(c), if, in any
         given fiscal year, the Executive does not lose supervision or reporting
         relationships over business functions or segments that have generated
         one hundred million dollars or more of revenue in the prior fiscal
         year, or which constitute a core business function of the Company.

                  (b) Board Service. The Executive will be permitted to serve on
         the boards of for-profit organizations so long as such activities do
         not materially interfere with the performance of his duties hereunder.
         The Company acknowledges that the board positions (3) on October 1,
         2004, held by the Executive do not materially interfere with the
         Executive's performance of duties under this Employment Agreement.

                  (c) Place of Performance. The Executive shall primarily
         perform his duties and conduct his business at the offices of the

<PAGE>

         Company, located in Marysville, Ohio, except for required travel
         reasonably required for the Company's business.

         2.       Term

                  (a) General Term. Unless earlier terminated as provided for
         herein, the term of this Employment Agreement will be for three years,
         beginning on October 1, 2004, and ending on September 30, 2007 (the
         "Term"). The Term of this Employment Agreement shall automatically
         extend for one additional year unless, at least thirty days prior to
         the end of the Term, either of the Company or the Executive shall give
         to the other written notice that the Term shall not extend for such one
         year period. The parties may renew this Employment Agreement for
         additional periods on mutually agreeable terms and conditions. Neither
         the Company nor the Executive is under any obligation to agree to such
         extensions and may refuse to extend or renew this Employment Agreement
         for any or no reason; provided, however, that the Company's refusal to
         offer the Executive a renewal on substantially comparable terms, as
         determined at the time of refusal, shall constitute a termination by
         the Company not for Cause, as if effected under Paragraph 2(c) below.

                  (b) Termination Due to Resignation Without Constructive
         Termination or Termination For Cause. If the Executive's employment
         with the Company is terminated by the Executive due to the Executive's
         voluntary resignation (other than voluntary resignation following
         "Constructive Termination", as defined below) or by the Company for
         "Cause" (as defined below), this Employment Agreement shall terminate
         immediately (except for the provisions of Paragraphs 4, 5, 6 and 7).
         For purposes of this Employment Agreement, the Executive may be
         terminated for "Cause" by majority vote of the Board of Directors of
         the Company as a result of the (i) Executive's conviction or plea of
         nolo contendere for the commission of an act or acts constituting a
         felony under the laws of the United States or any state thereof; (ii)
         upon the Executive's willful and continued failure to substantially
         perform his duties hereunder (other than any such failure resulting
         from the Executive's incapacity due to physical or mental illness);
         (iii) misconduct that materially injures the Company or a subsidiary of
         the Company or a subsidiary of the Company; or (iv) breach of any
         written covenant or agreement with the Company or a subsidiary of the
         Company. Any conduct or condition causing termination for Cause under
         Clauses (ii) or (iv) of this Paragraph 2(b) may be cured by the
         Executive within thirty days after written notice is delivered to the
         Executive from the Company and no termination shall occur for such
         reasons prior to the expiration of the cure period, if no cure occurs.
         For these purposes, no refusal to act or failure to adhere shall be
         considered as grounds for Cause unless it is done, or omitted to be
         done, in bad faith without reasonable belief that the action or
         omission was in the best interest of the Company. In the event
         corrective action is not satisfactorily taken by the Executive, a final
         written notice of termination shall be provided to the Executive by the
         Company. In such event the Executive shall receive the amounts
         described in Paragraph 3(i) following termination of this Employment
         Agreement. Any resignation by the Executive shall be communicated by at
         least thirty days' advance written notice.

<PAGE>

                  (c) Resignation Following Constructive Termination;
         Termination Not for Cause. If the Executive's employment is terminated
         during the Term of this Employment Agreement (i) due to resignation
         following "Constructive Termination" (as defined below) or (ii) the
         Executive is discharged by the Company for any reason other than for
         Cause (as defined in Paragraph 2(b)), this Employment Agreement shall
         terminate immediately (except for the confidentiality provisions of
         Paragraph 4(a) and the provisions of Paragraphs 5, 6 and 7) and the
         Executive shall receive the amounts described in Paragraph 3(j)
         following termination of this Employment Agreement.

                  For purposes of this Employment Agreement, a "Constructive
         Termination" shall be deemed to have occurred in the event that (i) the
         Executive's Base Salary as defined in Paragraph 3(a) is reduced, (ii) a
         significant diminution in the Executive's responsibilities, authority
         or scope of duties is effected by the Board of Directors and/or Chief
         Executive Officer and such diminution is made without the Executive's
         written consent (without regard to whether or not any change is made to
         the Executive's title); (iii) the Company materially breaches this
         Employment Agreement; (iv) the failure by the Company to continue in
         effect any compensation or benefit plan in which the Executive is
         entitled to participate which is material to the Executive's total
         compensation, unless an equitable arrangement has been made with
         respect to such plan, or the failure by the Company to continue the
         Executive's participation therein (or in such substitute or alternative
         plan) on a basis not materially less favorable, both in terms of the
         amount of benefits provided and the level of the Executive's
         participation relative to other participants; (v) the Company fails to
         obtain the assumption of this Employment Agreement as required by
         Paragraph 7(b); or (vi) the Company terminates the Executive's
         employment other than for Cause (as defined in Paragraph 3(b)) within
         twenty four months after a Change in Control of the Company.

                  For purposes of this Employment Agreement, a "Change in
         Control of the Company" means the occurrence of any of the following
         events after October 1, 2004: (i) any "person" or "group" (as such
         terms are used in Sections 13(d) and 14(d) of the Securities Exchange
         Act of 1934, as amended (the "Exchange Act")) other than the Company,
         subsidiaries of the Company, an employee benefit plan sponsored by the
         Company, or Hagedorn Partnership, L.P. or its successor or any party
         related to Hagedorn Partnership, L.P. (as determined by the Board of
         Directors) is or becomes the "beneficial owner" (as defined in Rule
         l3d-3 under the Exchange Act), directly or indirectly, of more than
         thirty percent of the combined voting stock of the Company; (ii) the
         shareholders of the Company adopt or approve a definitive agreement or
         series of related agreements for the merger or other business
         consolidation with another person and, immediately after giving effect
         to the merger or consolidation, (A) less than fifty percent of the
         total voting power of the outstanding voting stock of the surviving or
         resulting person is then "beneficially owned" (within the meaning of
         Rule l3d-3 under the Exchange Act) in the aggregate by (x) the
         stockholders of the Company immediately prior to such merger or
         consolidation, or (y) if a record date has been set to determine the
         stockholders of the Company entitled to vote with respect to such
         merger or consolidation, the stockholders of the Company as of such
         record date and (B) any "person" or "group" (as defined in Section
         13(d)(3) or 14(d)(2) of the Exchange Act) has become the direct or

<PAGE>

         indirect "beneficial owner" (as defined in Rule l3d-3 under the
         Exchange Act) of more than fifty percent of the voting power of the
         voting stock of the surviving or resulting person; (iii) the Company,
         either individually or in conjunction with one or more of its
         subsidiaries, sells, assigns, conveys, transfers, leases or otherwise
         disposes of, or the subsidiaries sell, assign, convey, transfer, lease
         or otherwise dispose of, all or substantially all of the properties and
         assets of the Company and the subsidiaries, taken as a whole (either in
         one transaction or a series of related transactions), to any person
         (other than the Company or a wholly owned subsidiary); (iv) for any
         reason, Hagedorn Partnership, L.P. or its successor or any party
         related to Hagedorn Partnership, L.P. (as determined by the Board of
         Directors) becomes the beneficial owner, as defined above, directly or
         indirectly, of securities of the Company representing more than
         forty-nine percent of the combined voting power of the Company's
         then-outstanding voting securities; or (v) the adoption or
         authorization by the shareholders of the Company of a plan providing
         for the liquidation or dissolution of the Company. Any resignation by
         the Executive as a result of assertion of a Constructive Termination
         shall be communicated by delivery to the Board of Directors of the
         Company of thirty days' advance written notice of such Constructive
         Termination and the grounds therefor, during which period the Company
         shall be entitled to cure or remedy the matters set forth in such
         notice to the Executive's reasonable satisfaction. Unless the Executive
         shall withdraw such notice prior to the expiration of such thirty day
         period, such resignation shall take effect upon the expiration of
         thirty days from the date of the delivery of such notice.

                  (d) Death; Disability. If the Executive shall die, or become
         disabled and cannot perform the Executive's duties for a period of more
         than six months, this Employment Agreement shall terminate immediately.
         For purposes of this Employment Agreement, the Executive shall be
         disabled as of the earlier of (i) the first date on which the Executive
         shall become eligible to receive disability benefits under the
         Company's long-term disability plan (or Social Security disability
         benefits at a time when the Company does not maintain a long-term
         disability plan or such plan is not available to the Executive); or
         (ii) if, as a result of the Executive's incapacity due to physical or
         mental illness, the Executive shall have been absent from his duties
         hereunder for the entire period of six consecutive months, and within
         thirty days after written notice in accordance with the provisions of
         Paragraphs 2(b) and 7(e) is given, shall not have returned to the
         performance of his duties. In such events, the Executive or his estate
         or beneficiary shall receive the amounts described in Paragraph 3(h).

         3.       Compensation

                  (a) Base Salary. Each year during the Term hereof, the
         Executive will be paid a base salary of $540,000 per annum ("Base
         Salary"), payable in accordance with the Company's payroll guidelines,
         subject to applicable tax and benefit plan withholding. Increases may
         be made to the Executive's Base Salary (in accordance with the standard
         performance review procedures for senior executive officers of the
         Company) at the discretion of the Compensation and Organization
         Committee and approved by the Board of Directors based upon the
         Executive's individual performance. Notwithstanding the foregoing, if

<PAGE>

         the Executive's Base Salary is increased, it shall not thereafter be
         decreased during the Term of this Employment Agreement.

                  (b) Incentive Target. The Executive shall be a participant in
         The Scotts Company Executive/Management Incentive Plan, with a Target
         Payment Percentage (as defined in such plan) of sixty-five percent, and
         in any successor to such plan. The goals for the Executive under such
         plan shall be consistent with those established for other senior
         executives in general, taking into consideration the Executive's
         position and duties with the Company.

                  (c) Stock-Based Compensation. As of October 1, 2004, the
         Executive shall receive a restricted stock grant of twenty-five
         thousand shares of stock of the Company. The terms of grant shall
         specify that any forfeiture restrictions shall lapse on September 30,
         2009, if the Executive is then employed by the Company, or on September
         30, 2007, if the Executive is then employed by the Company and is not
         then serving as Chief Operating Officer of the Company, or in a more
         senior position with the Company. The Executive shall be eligible for
         additional grants and awards under The Scotts Company 2003 Stock Option
         and Incentive Equity Plan or any successor plan (the "Equity Plan") on
         a basis no less favorable to the Executive than other senior management
         executives, commensurate with his position and title, targeted at least
         at the 50th percentile of peer companies for the chief operating
         officer position.

                  (d) Benefit Plan Participation. The Executive shall be
         entitled to participate in all of the Company's benefit programs for
         senior management executives. The Executive shall participate in, and
         be eligible to receive benefits under, any "employee welfare benefit
         plans" and "employee pension benefit plans" (as such terms are defined
         in the Employee Retirement Income Security Act of 1974, as amended
         ("ERISA")) and business travel insurance plans and programs as shall
         apply to general and/or executive employees of the Company; and shall
         be provided benefits under such plans and agreements substantially
         equivalent (in the aggregate) to the benefits provided to other senior
         executive officers of the Company and on substantially similar terms
         and conditions as such benefits are provided to other senior executive
         officers of the Company. Notwithstanding the foregoing, the Executive
         is not eligible for participation in the Company's pension plan. The
         Executive will participate, or be eligible to participate where
         participation is voluntary, in any non-qualified pension, supplemental
         executive retirement programs, deferred compensation, and excess
         benefit plans sponsored by the Company and available to any of the
         Company's senior management executives. During the Term, the Company
         shall provide to the Executive all of the fringe benefits and
         perquisites that are provided to other senior executive officers of the
         Company, and the Executive shall be entitled to receive any other
         fringe benefits or perquisites that become available to other senior
         executive officers of the Company subsequent to the date of execution
         of this Employment Agreement. Without limiting the generality of the
         foregoing, the Company shall provide the Executive with the following
         benefits during the Term: (i) paid vacation, paid holidays and sick
         leave in accordance with the Company's standard policies for its senior
         executive officers, which policies shall provide the Executive with
         benefits no less favorable (in the aggregate) than those provided to
         any other senior executive officers of the Company; (ii) an automobile

<PAGE>

         allowance of at least $12,000 annually and no less than any such
         allowance provided to any other senior executive officer of the
         Company; (iii) the Executive and, in some circumstances, members of his
         immediate family shall receive use of one or more Company-owned or
         leased and Company operated aircraft in accordance with the Company's
         standard executive flight and travel policies. The Executive
         acknowledges that part of any such travel may constitute additional
         taxable compensation of the Executive, but the Company makes no tax
         representation relating thereto. In the event that the Executive shall
         attain the age of fifty-five years while in the active employment of
         the Company, and completes at least six years of full-time continuous
         employment with the Company, the Company will extend active employee
         health care benefits required to be available to the Executive for a
         limited period ("COBRA Coverage") under Part Six of Title One of ERISA,
         until the Executive attains the age of sixty-five years (or, in the
         event of the Executive's death, would have attained the age of
         sixty-five years) or becomes entitled to benefits under the Federal
         "Medicare Part A" program, whichever shall first occur. The Executive
         will pay a premium for such extended health care coverage. During the
         period in which COBRA Coverage is statutorily required under ERISA, the
         Executive (or his spouse or dependents in the event of his death) shall
         pay the COBRA premium then in effect for those who elect COBRA Coverage
         under the Company's health plan or plans. Thereafter, during the
         extended coverage period described in this Paragraph 3(d), the
         Executive shall pay one hundred fifty percent of such COBRA premium in
         effect from time to time for such coverage.

                  (e) Personal Financial Planning. The Company will provide the
         Executive with either a $4,000 amount to be used in lieu of the
         provision of personal financial planning, or will provide personal
         financial planning up to a cost or value of such amount. The value of
         such services or such amount will be added to the Executive's taxable
         income. Some or all of such value or amount may be tax deductible by
         the Executive, but the Company makes no tax representation relating
         thereto.

                  (f) Executive Physical. The Executive shall receive a
         comprehensive physical examination annually at Company expense through
         a physician or physicians of the Executive's choice under the Cleveland
         Clinic or OSU Executive Medical Services facilities, provided that part
         of such expense may be reimbursed through one or more Company welfare
         benefit plans.

                  (g) Repayment of Sign-On Bonus. In the event that the
         Executive shall separate from employment with the Company prior to
         April 24, 2005, for any reason, the Executive shall repay to the
         Company a pro-rated portion of the $300,000 sign-on bonus he received
         pursuant to his agreement entered into with the Company on April 23,
         2003. Such pro-ration shall be based on the non-expired part of the
         twenty-four month period which commenced April 23, 2003. Such repayment
         shall be paid by the Executive in a single lump sum payable within
         thirty days of the Executive's separation from the Company.

                  (h) Compensation on Death or Disability. During any period
         that the Executive fails to perform his duties hereunder as a result of
         incapacity due to physical or mental illness, the Executive shall

<PAGE>

         continue to receive his full Base Salary, as well as other applicable
         employee benefits provided to other senior executives of the Company,
         less any amounts paid under the Company's long-term or short-term
         disability plans before termination of the Executive's employment,
         until his employment is terminated pursuant to Paragraph 2(d) hereof.
         In the event of the death of the Executive, the Executive's estate or
         designated beneficiary shall receive the Executive's accrued and unpaid
         Base Salary to date of death. Bonuses, benefits and perquisites and
         reimbursements shall be payable in accordance with the terms of the
         governing plan documents or Company policies. Upon termination of this
         Employment Agreement under Paragraph 2(d), the Executive, or the
         Executive's estate or designated beneficiary in the event of the
         Executive's death, shall also receive within thirty days of the date of
         death or disability termination, a lump sum amount equal to two times
         the sum of Executive's annual Base Salary and incentive target bonus
         (in each case as in effect in the year of disability or death), plus
         the payments and benefits set forth in Paragraphs 3(j)(iii), (j)(v),
         (k) and (l), at the times indicated therein. The Executive, in the
         manner designated by the Company, may designate a beneficiary or
         beneficiaries other than his estate to receive such amount. No other
         severance amount shall be payable under the Employment Agreement on
         account of the Executive's death or disability.

                  (i) Compensation in the Event of Resignation Other Than on
         Account of Constrictive Termination or in the Event of Discharge for
         Cause. If the Executive's employment is terminated by the Company for
         Cause (as defined in Paragraph 2(b)) or the Executive resigns for any
         reason other than pursuant to Constructive Termination (as defined in
         Paragraph 2(c)) the Executive will receive payment of his unpaid
         accrued Base Salary to the date of termination of employment, and shall
         be entitled to any amounts provided under the terms of the Company's
         benefit plans and employment policies, and the Company shall have no
         further obligations to the Executive under this Employment Agreement.

                  (j) Compensation in the Event of Resignation Following
         Constructive Termination or Discharge by the Company Other than for
         Cause. In the event that the Executive shall be entitled to
         compensation pursuant to Paragraph 2(c), the Executive shall receive
         within fifteen days of termination of employment, except as required by
         Paragraphs 3(j)(iii) and (iv) below, the following:

                           (i) The Executive's accrued and unpaid Executive's
                  Base Salary as described in Paragraph 3(a) through the date of
                  termination;

                           (ii) except as provided in Paragraph 3(j)(iii), in
                  lieu of further cash compensation payments to the Executive
                  pursuant to Paragraph 3, the Company shall pay the Executive,
                  within thirty days of the date of the Executive's termination,
                  a lump sum amount equal to two times the sum of the
                  Executive's annual Base Salary and incentive target bonus (for
                  such year);

                           (iii) in addition to the compensation described in
                  Paragraph 3(j)(ii), the Executive shall receive the amount of
                  incentive the Executive would have earned for such year
                  pro-rated to the date of termination, and payable at the time
                  incentive

<PAGE>

                  payments are regularly payable to recipients of such payments
                  for such year;

                           (iv) the amounts payable under the Company's benefit
                  plans, perquisites and policies shall be payable under the
                  terms of the respective plan documents and personnel policies;
                  provided, however that if health benefits are not otherwise
                  due to the Executive, his spouse or dependents under Paragraph
                  3(d), medical coverage shall be provided for a twenty-four
                  month period following the date of termination at the same
                  coverage level as is made available to active senior
                  management employees of the Company, subject to the charges
                  for such coverage described in Paragraph 3(d); and

                           (v) additionally, the provisions of Paragraph 7(i)
                  and 7(j) shall remain in effect as though this Employment
                  Agreement expired at the end of its regular Term described in
                  Paragraph 2(a), irrespective of its earlier termination.

                  (k) Vesting. The Executive has received prior to October 1,
         2004, stock-based awards relating to fifty thousand shares of Company
         stock on June 2, 2003, and twenty-five thousand shares of Company stock
         on November 19, 2003. The Executive has also received a stock award
         pursuant to Paragraph 3(c) of this Employment Agreement, and may
         receive additional stock-based compensation in the future.
         Notwithstanding anything in the award documents under which such awards
         were made to the contrary, all such awards shall vest, become
         exercisable, or mature, as applicable, in the event of termination of
         the Executive's employment by the Company for any reason other than for
         Cause, or in the event of the Executive's resignation following
         Constructive Termination, provided, however, that this provision shall
         apply to the stock award pursuant to this Employment Agreement of
         twenty-five thousand shares of Company stock and any additional stock
         based compensation in the future only if the Executive's termination of
         employment or resignation following Constructive Termination occurs on
         or after the attainment of the age of fifty-five years. The Company
         agrees to make, and represents that the Board has authorized as of the
         date of this Employment Agreement, an amendment to any of the relevant
         award instruments as shall be necessary to be consistent with this
         Paragraph 3(k), as well as adding a provision prohibiting cancellation
         of the award without the consent of the Executive. The time and manner
         of payment or transfer will be determined in accordance with the terms
         and provisions of the Equity Plan.

                  (l) Supplemental Retirement Benefit. During any period in
         which the Executive or his spouse or dependents receives regular and
         extended health care continuation coverage pursuant to Paragraph 3(d),
         the Executive or his spouse or dependents shall receive a supplemental
         retirement income payment equal to one hundred fifty percent of the
         then-effective annual COBRA coverage premium. Such amount shall be paid
         in a single sum, payable in the first month of each applicable calendar
         year in which such amount is payable, and shall be subject to all
         applicable tax withholding. Such amount shall be deemed to be payable
         under a plan described in sections 201(2), 301(a)(3) and 401(a)(2) of
         ERISA and subject to Department of Labor Regulation 2520.104-23 (or any
         similar successor regulation).

<PAGE>

         4.       Confidentiality and Non-Competition

                  (a) Nondisclosure. The Executive recognizes and acknowledges
         that the Executive will have access to certain information concerning
         the Company that is confidential and proprietary and constitutes
         valuable and unique property of the Company. The Executive agrees that
         the Executive will not at any time, either during or after the
         Executive's employment, disclose to others, use, copy or permit to be
         copied, except pursuant to the Executive's duties on behalf of the
         Company or its successors, subsidiaries, assigns or nominees, and
         except pursuant to requirements of law or any lawful judicial or
         administrative proceeding, any secret, proprietary or confidential
         information of the Company (whether or not developed by the Executive)
         including, without limitation technical information, product
         information and formulae, process, business and marketing strategies,
         customer information and other information concerning the Company's and
         subsidiaries' products, promotions, development, financing, expansion
         plans, business policies and practices, salaries and benefits and other
         forms of information considered by the Company to be proprietary and
         confidential and in the nature of Trade Secrets, without the prior
         written consent of the Chief Executive Officer or Board of Directors of
         the Company. The Executive will return upon request 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 have been produced by, received by or otherwise
         been submitted to the Executive in the course of his service with the
         Company or a subsidiary of the Company.

                  (b) Need for Covenant. The Executive and the Company agree
         that the Executive, by virtue of his position with the Company, is in
         possession of highly sensitive information regarding the Company's
         investors, contracts, plans and operations, and those of its corporate
         affiliates, that the Executive is the Company's representative to
         current and potential clients, that other entities each compete
         vigorously with the Company throughout various portions of the
         Company's area of operations, and the Executive's use of such knowledge
         for the benefit of a competitor of the Company would provide a
         competitive advantage to a competitor that would be highly detrimental
         to the Company. The Executive's skills, knowledge and services are
         unique, and the success or failure of the Company is dependent upon the
         Executive's services. The Executive agrees that the Company has a
         legitimate business interest in protecting this information and
         preventing competitors from utilizing such information. Therefore, the
         Executive agrees that, during the Term of this Employment Agreement and
         for a period of thirty-six months (except as provided in Paragraph
         4(c)(3), below) following the termination of this Employment Agreement
         (i) due to expiration or the Term or, (ii) by the Executive other than
         due to Constructive Termination or (iii) by the Company due to
         discharge without Cause, the Executive will not engage in any
         Prohibited Competitive Activities, as provided in Paragraph 4(c).

                  (c) Competitive Activities. During the time period specified
         in Paragraph 4(b), the Executive shall not:

<PAGE>

                           (1) engage in, or have any interest in any person,
                  firm, corporation, business or other entity (as an officer,
                  director, employee, agent, stockholder or other security
                  holder, creditor, consultant or otherwise) that engages in or
                  renders any service (including, without limitation,
                  advertising or business consulting) which is the same, similar
                  or competitive to the Company's principal business activities,
                  as the same may be conducted from time to time;

                           (2) interfere with any contractual relationship that
                  may exist from time to time of the business of the Company,
                  including, but not limited to, any contractual relationship
                  with any director, officer, employee, or sales agent, or
                  supplier of the Company;

                           (3) for an eighteen month period following
                  termination of this Employment Agreement, without the Chief
                  Executive Officer's or Board of Directors' consent, which may
                  be withheld for any or no reason, solicit, induce or
                  influence, or seek to induce or influence, any person who
                  currently is, or from time to time may be, engaged in or
                  employed by the Company (as an officer, director, employee,
                  agent or independent contractor) in any managerial or
                  executive or technical position to terminate his or her
                  employment or engagement by the Company; or

                           (4) deliberately engage in any action that the
                  Company advises the Executive has or will cause substantial
                  harm to the Company.

         Such activities are defined as "Prohibited Competitive Activities".
         Notwithstanding anything to the contrary contained herein, the
         Executive, directly or indirectly, may own publicly traded stock
         constituting not more than three percent of the outstanding shares of
         such class of stock of any corporation if, and as long as, the
         Executive is not an officer, director, employee or agent of, or
         consultant or advisor to, or has any other relationship or agreement
         with such corporation; except as provided in Paragraph 1(b).

                  (d) Injunctive Relief. The Company and the Executive agree
         that money damages may not be adequate to compensate the Company for
         the Executive's breach of any provision of this Paragraph 4 and that
         the Company therefore will be entitled to a decree for specific
         performance or other appropriate remedy, including injunctive relief,
         to enforce the Executive's performance of any such provision. The
         Executive expresses, agrees and acknowledges that this Covenant Not to
         Compete is necessary for the protection of the Company because of the
         nature and scope of its business and the Executive's position with, and
         services for, the Company. The Executive acknowledges that any breach
         of this Covenant Not to Compete would result in irreparable damage to
         the Company.

                  (e) Reasonableness. The Executive expressly agrees and
         acknowledges as follows:

<PAGE>

                  (1) This Covenant Not to Compete is reasonable as to time and
         geographical area and does not place any unreasonable burden upon the
         Executive;

                  (2) The general public will not be harmed as a result of
         enforcement of this Covenant Not to Compete;

                  (3) The Executive has requested or has had the opportunity to
         request that his personal legal counsel review this Covenant Not to
         Compete; and

                  (4) The Executive understands and hereby agrees to each and
         every term and condition of this Covenant Not to Compete.

         5.       Indemnification

                  If, at any time during or after the Term of this Employment
Agreement, the Executive is made a party to, or is threatened to be made a party
in, any civil, criminal or administrative action, suit or proceeding by reason
of the fact that the Executive is or was a director, officer, employee, or agent
of the Company, or of any other corporation or any partnership, joint venture,
trust or other enterprise for which the Executive served as such at the request
of the Company, then the Executive shall be indemnified by the Company against
expenses actually and reasonably incurred (including the advancement of legal
fees and expenses) by the Executive or imposed on the Executive in connection
with, or resulting from, the defense of such action, suit or proceeding, or in
connection with, or resulting from, any appeal therein if the Executive acted in
good faith and in a manner the Executive reasonably believed to be in or not
opposed to the best interest of the Company, and, with respect to any criminal
action or proceeding, had no reasonable cause to believe the Executive's conduct
was unlawful, except with respect to matters as to which it is adjudged that the
Executive is liable to the Company or to such other corporation, partnership,
joint venture, trust or other enterprise for gross negligence or willful
misconduct in the performance of the Executive's duties. As used herein, the
term "expenses" shall include all obligations actually and reasonably incurred
by the Executive for the payment of money, including, without limitation,
attorney's fees, judgments, awards, fines, penalties and amounts paid in
satisfaction of a judgment or in settlement of any such action, suit or
proceeding, except amounts paid to the Company or such other corporation,
partnership, joint venture, trust or other enterprise by the Executive.

         6.       Arbitration

Except as provided in Paragraph 4, any controversy or claim arising out of or
relating to this Employment Agreement, or any breach thereof, except as provided
in Paragraph 4, shall be adjudged only by arbitration in accordance with the
rules of the American Arbitration Association, and judgment upon such award
rendered by the arbitrator may be entered in any court having jurisdiction
thereof. The arbitration shall be held in the City of Columbus, Ohio, or such
other place as may be agreed upon at the time by the parties to the arbitration.
The arbitrator(s) shall, in their award, allocate between the parties the costs
of arbitration, which shall include reasonable attorneys' fees of the parties,
as well as the arbitrators' fees and expenses, in such proportions as the
arbitrator(s) deem just.

<PAGE>

         7.       Other Provisions

                  (a) Governing Law. This Employment Agreement will be governed
         by, and construed and enforced in accordance with, the laws of the
         State of Ohio, excluding any conflicts of law, rule or principle that
         might otherwise refer to the substantive law of another jurisdiction.

                  (b) Assignment. Except as otherwise indicated, this Employment
         Agreement is not assignable without the written authorization of both
         parties; provided that the Company may assign this Employment Agreement
         to any entity to which the Company transfers substantially all of its
         assets or to any entity which is a successor to the Company by
         reorganization, incorporation, merger or similar business combination.
         In the event of any such transfer or assignment by the Company, the
         rights and privileges of the Board hereunder shall be vested in the
         Board of Directors or other governing body of the transferee or
         successor entity. However, notwithstanding anything to the contrary
         contained herein, this Employment Agreement will be binding upon any
         successor (whether direct or indirect, by purchase, merger,
         consolidation or otherwise) to all or substantially all of the business
         and/or assets of the Company, and the Company will require any such
         successor by agreement, in form and substance satisfactory to the
         Executive, to expressly assume and agree to perform this Employment
         Agreement in the same manner and to the same extent that the Company
         would be required to perform if no such succession had taken place. In
         addition to the Executive's rights above, if a Change in Control of the
         Company occurs as described in Paragraph 2(c) above, the failure of the
         Company to obtain such agreement prior to the effectiveness of any such
         succession shall be a breach of this Employment Agreement and shall
         entitle the Executive to compensation from the Company in the same
         amount and on the same terms as the Executive would be entitled to
         hereunder if the Executive resigned from the Executive's employment due
         to a Constructive Termination, as described in Paragraph 2(c), except
         that for purposes of implementing the foregoing, the date on which any
         such succession becomes effective shall be deemed the date of
         termination. As used in this Employment Agreement, "the Company" shall
         mean the Company as hereinbefore defined and any successor to its
         business and/or assets as aforesaid which executes and delivers the
         agreement provided for in this Paragraph 7(b) or which otherwise
         becomes bound by all the terms and provisions of this Employment
         Agreement by operation of law. This Employment Agreement and all rights
         of the parties hereto shall inure to the benefit of and be enforceable
         by the parties hereto, their assigns, personal or legal
         representatives, executors, administrators, successors, heirs,
         distributees, devises and legatees.

                  (c) Survival of Certain Provisions. Except as otherwise
         provided herein, the provisions of Paragraphs 4, 5 and 6 of this
         Employment Agreement shall survive the termination of this Employment
         Agreement.

                  (d) Prior Agreements Voided. Upon commencement of the Term of
         this Employment Agreement, this Employment Agreement supersedes all
         previous employment agreements, written or oral, between the Company
         and the Executive, including, without limitation, the agreement of
         April 23, 2003. This Employment Agreement may be amended only by

<PAGE>

         written amendment duly executed by both parties hereto or their legal
         representatives and authorized by action of the Board. Except as
         otherwise specifically provided in this Employment Agreement, no waiver
         by either party hereto of any breach by the other party hereto of any
         condition or provision of this Employment Agreement to be performed by
         such other party shall be deemed a waiver of a subsequent breach of
         such condition or provision or a waiver of a similar or dissimilar
         provision or condition at the same or at any prior or subsequent time.

                  (e) Notices. Any notice or other communication required or
         permitted pursuant to the terms of this Employment Agreement shall be
         in writing and shall be deemed to have been duly given when delivered
         or mailed by United States mail, first class, postage prepaid and
         registered with return receipt requested, addressed to the intended
         recipient at his or its address set forth below and, in the case of a
         notice or other communication to the Company, directed to the attention
         of the Chief Executive Officer with a copy to the General Counsel of
         the Company, or to such other address as the intended recipient may
         have theretofore furnished to the sender in writing in accordance
         herewith, except that until any notice of change of address is
         received, notices shall be sent to the following addresses:

                  If to the Executive:         If to the Company:
                                               The Scotts Company
                  Mr. Robert F. Bernstock      Attn:  Chief Executive Officer
                  [address]                    14111 Scottslawn Road
                                               Maryville, Ohio  43201

                  (f) Reformation. If any one or more of the provisions or parts
         of a provision contained in this Employment Agreement including,
         without limitation, the restrictions contained in Paragraph 4, shall
         for any reason be held to be invalid, illegal or unenforceable in any
         respect, such invalidity or unenforceability shall not affect any other
         provision or part of a provision of this Employment Agreement, but this
         Employment Agreement shall be reformed and construed as if such invalid
         or illegal or unenforceable provision or part of a provision had never
         been contained herein and such provisions or part thereof shall be
         reformed so that it would be valid, legal and enforceable to the
         maximum extent permitted by law.

                  (g) Mitigation. The Executive shall not be required to
         mitigate damages (or the amount of any compensation provided under this
         Employment Agreement to be paid) following the Executive's termination
         of employment, by seeking employment or otherwise.

                  (h) Rights under Stock-Based Plans. In the event that any
         Incentive Compensation Plan or the Option Plan are amended to reduce,
         modify limit or restrict any of the Executive's accrued or vested
         rights thereunder, the Company hereby agrees that no such amendment
         shall apply to the Executive without the Executive's written consent.

                  (j) Amendments Related to Indemnification. The Company will
         not amend the provisions of its governing documents which pertain to
         the Executive's indemnification in the Executive's capacity as an
         officer except to substitute therefor provisions which are more
         favorable to the Executive, except as otherwise required by law or the

<PAGE>

         rules of any securities exchange or similar entity, or by applicable
         law.

                  (k) Counterparts. This Employment Agreement may be executed in
         one or more counterparts, each of which shall be deemed to be an
         original but all of which together will constitute one and the same
         instruments.

                  (l) Due Authorization. The Company represents that its
         execution of this Employment Agreement and covenants specified in this
         Employment Agreement have been duly authorized by its Board and that
         there are no impediments to it fulfilling its obligations hereunder.

                                                   The Scotts Company

                                                   By:  /s/ Denise Stump
                                                        ------------------------
                                                   Its: Executive Vice President
                                                        Global Human Resources

AGREED AND ACCEPTED this
16th day of September,
2004 and effective as of
October 1, 2004.

                                                     /s/ Robert F. Bernstock
                                                    -------------------------
                                                     Robert F. Bernstock

Signed in my presence on 9-16-04.

         /s/ Ellen Richards
-------------------------------
Ellen Richards
Notary Public, State of Ohio
My Commission Expires 08-16-05

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