Document:

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                                                                    Exhibit 4(c)

                              ACORN PRODUCTS, INC.

                           SECOND AMENDED AND RESTATED
                   1997 NONEMPLOYEE DIRECTOR STOCK OPTION PLAN

         1. ESTABLISHMENT AND PURPOSE OF THE PLAN. This 1997 Nonemployee
Director Stock Option Plan (the "Plan") is established by Acorn Products, Inc.,
a Delaware corporation (the "Company"), as of December 9, 1997, as may be
amended from time to time. The Plan is designed to enable the Company to attract
and retain persons to serve as nonemployee directors of the Company, UnionTools,
Inc., a Delaware corporation ("UnionTools"), or the Company's other direct and
indirect subsidiaries. The Plan provides for the grant of options ("Options")
that do not qualify as incentive stock options under Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code"), for the grant of stock
appreciation rights ("Stock Appreciation Rights") and for the sale or grant of
restricted stock ("Restricted Stock").

         2. STOCK SUBJECT TO THE PLAN. The maximum number of shares of stock
that may be subject to Options or Stock Appreciation Rights granted hereunder
and the number of shares of stock that may be sold as Restricted Stock
hereunder, shall not in the aggregate exceed 500,000 shares of common stock,
$0.001 par value (the "Shares," and individually, a "Share"), of the Company,
subject to adjustment under Section 11 hereof. Anything contained herein to the
contrary notwithstanding, the aggregate number of Shares with respect to which
Options or stock appreciation rights may be granted during any calendar year to
any individual shall be limited to 500,000. The Shares that may be subject to
Options granted under the Plan, and Restricted Stock sold or granted under the
Plan, may be authorized and unissued Shares or Shares reacquired by the Company
and held as treasury stock.

         Shares that are subject to the unexercised portions of any Options that
expire, terminate or are canceled, and Shares that are not required to satisfy
the exercise of any Stock Appreciation Rights that expire, terminate or are
canceled, and Shares of Restricted Stock that are reacquired by the Company
pursuant to the restrictions thereon, may again become available for the grant
of Options or Stock Appreciation Rights and the sale or grant of Restricted
Stock under the Plan. If a Stock Appreciation Right is exercised, any Option or
portion thereof that is surrendered in connection with such exercise shall
terminate and the Shares theretofore subject to the Option or portion thereof
shall not be available for further use under the Plan.

         3. ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Management Development and Compensation Committee (the "Committee") consisting
of not less than two members appointed by the Board of Directors (the "Board")
of the Company. If no persons are designated by the Board to serve on the
Committee, the Plan shall be administered by the Board and all references herein
to the Committee shall refer to the Board. From time to time, the Board shall
have the discretion to add, remove or replace members of the Committee and shall
have the sole authority to fill vacancies on the Committee. All actions of the
Committee shall comply with the provisions of Rule 16b-3 of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and Section 162(m) of the
Code.

         All actions of the Committee shall be authorized by a majority vote
thereof at a duly called meeting. The Committee shall have the sole authority,
in its absolute discretion, to adopt, amend, and rescind such rules and
regulations as, in its opinion, may be advisable in the administration of the
Plan, to construe and interpret the Plan, the rules and regulations, and the
agreements and other instruments evidencing Options and Stock Appreciation
Rights granted and Restricted Stock sold or granted under the Plan and to make
all other determinations deemed necessary or advisable for the administration of
the Plan. All decisions, determinations, and interpretations of the Committee
shall be final and conclusive upon the Eligible Directors, as hereinafter
defined. Notwithstanding the foregoing, any dispute arising under any Agreement
(as defined below) shall be resolved pursuant to the dispute resolution
mechanism (if any) set forth in such Agreement.

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         Subject to the express provisions of the Plan, the Committee shall
determine the number of Shares subject to grants or sales and the terms thereof,
including the provisions relating to the exercisability of Options and Stock
Appreciation Rights, lapse and non-lapse restrictions upon the Shares obtained
or obtainable under the Plan and the termination and/or forfeiture of Options
and Stock Appreciation Rights and Restricted Stock under the Plan. The terms
upon which Options and Stock Appreciation Rights are granted and Restricted
Stock is sold or granted shall be evidenced by a written agreement executed by
the Company and the Participant (as defined below) to whom such Options, Stock
Acquisition Rights and Restricted Stock are sold or granted (the "Agreement").

         4. ELIGIBILITY. Persons who shall be eligible for grants of Options or
Stock Appreciation Rights or sales or grants of Restricted Stock hereunder
("Eligible Directors") shall be directors of the Company who are not employees
of the Company, UnionTools or the Company's other direct or indirect
subsidiaries ("Participant").

         5. TERMS AND CONDITIONS OF OPTIONS. No Option shall be granted for a
term of more than ten years and thirty days. Options may, in the discretion of
the Committee, be granted with associated Stock Appreciation Rights or be
amended so as to provide for associated Stock Appreciation Rights. The Agreement
may contain such other terms, provisions and conditions as may be determined by
the Committee as long as such terms, conditions and provisions are not
inconsistent with the Plan.

         6. EXERCISE PRICE OF OPTIONS. The exercise price per share for each
Option granted hereunder shall be set forth in the Agreement. Payment for Shares
purchased upon exercise of any Option granted hereunder shall be in cash at the
time of exercise, except that, if either the Agreement so provides or the
Committee so permits, and if the Company is not then prohibited from purchasing
or acquiring Shares, such payment may be made in whole or in part with Shares.
The Committee also may on an individual basis permit payment or agree to permit
payment by such other alternative means as may be lawful, including by delivery
of an executed exercise notice together with irrevocable instructions to a
broker promptly to deliver to the Company the amount of sale or loan proceeds
required to pay the exercise price.

         7. DETERMINATION OF FAIR MARKET VALUE. The Fair Market Value of a Share
for the purposes of the Plan shall mean the average of the high and low sale
prices of a Share on the date such determination is required herein, or if there
were no sales on such date, the average of the closing bid and asked prices, as
reported on the principal United States securities exchange on which the Shares
are listed or, in the absence of such listing, on the Nasdaq SmallCap Market or,
if Shares are not at the time listed on a national securities exchange or traded
on the Nasdaq SmallCap Market, the value of a Share on such date as determined
in good faith by the Committee.

         8. NON-TRANSFERABILITY. Except to the extent provided otherwise in the
Agreement, any Option granted under the Plan shall by its terms be
nontransferable by the Participant other than by will or the laws of descent and
distribution (in which case such descendant or beneficiary shall be subject to
all terms of the Plan applicable to Participants) and is exercisable during the
Participant's lifetime only by the Participant or by the Participant's guardian
or legal representative.

         9. STOCK APPRECIATION RIGHTS. The Committee may, under such terms and
conditions as it deems appropriate, grant to any Eligible Director selected by
the Committee, Stock Appreciation Rights, which may or may not be associated
with Options. Upon exercise of a Stock Appreciation Right, the Participant shall
be entitled to receive payment of an amount equal to the excess of the Fair
Market Value of the underlying Shares on the date of exercise over the exercise
price of the Stock Appreciation Rights. Such payment may be made in additional
Shares valued at their Fair Market Value on the date of exercise or in cash, or
partly in Shares and partly in cash, as the Committee may designate. The
Committee may require that any Stock Appreciation Right shall be subject to the
condition that the Committee may at any time, in its absolute discretion, not
allow the exercise of such Stock Appreciation Right. The Committee may further
impose such conditions on the exercise of Stock Appreciation Rights as may be
necessary or desirable to comply with Rule 16b-3 under the Exchange Act.

         10. RESTRICTED STOCK. The Committee may sell or grant Restricted Stock
under the Plan (either independently or in connection with the exercise of
options or Stock Appreciation Rights under the Plan) to Eligible Directors
selected by the Committee. The Committee shall in each case determine the number
of Shares of

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Restricted Stock to be sold or granted, the price at which such Shares are to be
sold, if applicable, and the terms or duration of the restrictions to be imposed
upon those Shares.

         11. ADJUSTMENTS. If at any time the class of Shares subject to the Plan
is changed into or exchanged for a different number or kind of shares or
securities, as the result of any one or more reorganizations, recapitalizations,
stock splits, reverse stock splits, stock dividends or similar events, or in the
event of a rights offering to purchase Shares at a price substantially below
Fair Market Value, an appropriate adjustment consistent with such change,
exchange or offering shall be made in the number, exercise or sale price and/or
type of shares or securities for which Options or Stock Appreciation Rights may
thereafter be granted and Restricted Stock may thereafter be sold or granted
under the Plan in such manner as the Committee may deem equitable to prevent
substantial dilution or enlargement of the rights granted to, or available for,
participants in the Plan. Any such adjustment in outstanding Options or in
outstanding rights to purchase Restricted Stock shall be made without changing
the aggregate exercise price applicable to the unexercised portions of such
Options or the aggregate purchase price of such Restricted Stock, as the case
may be.

         12. CHANGE OF CONTROL. Notwithstanding any provision of this Plan to
the contrary, in the event of a Change of Control (as defined below), all
Options and Stock Appreciation Rights that have been granted by the Board as of
the date thereof shall vest and become exercisable, as the case may be,
immediately prior to the effective time of any Change of Control and all
conditions to exercise thereof shall be deemed to have been met.

         For purposes of this Section 12, the following terms shall have the
following meanings:

         "Affiliate" of any specified Person (as defined in Section 13(d) of the
Exchange Act) shall mean (i) any other Person, directly or indirectly,
controlling or controlled by or under direct or indirect common control with
such specified Person or (ii) any Person who is a director or officer (a) of
such Person, (b) of any subsidiary of such Person or (c) of any Person described
in clause (i) above. For purposes of this definition, "control" when used with
respect to any Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meaning correlative to the foregoing.

         "Change of Control" shall mean: (i) the acquisition by any Person (as
defined in Section 13(d) of the Exchange Act) other than TCW or Oaktree, of
beneficial ownership (as defined in Rule 13d-3 and Rule 13d-5 under the Exchange
Act, except such Person shall be deemed to have "beneficial ownership" of all
securities that such Person has the right to acquire, whether such right is
exercisable immediately or only after the passage of time) of securities of the
Company (a) having 25% or more of the total voting power of the then outstanding
voting securities of the Company and (b) having more voting power than the
securities of the Company beneficially owned by Oaktree; (ii) during any twelve
month period, a change in the Board occurs such that Incumbent Members do not
constitute a majority of the Board; (iii) a sale of all or substantially all of
the assets of the Company or UnionTools; or (iv) the consummation of a merger or
consolidation of the Company with any other Person, provided, however, that no
Change of Control shall have occurred pursuant to this clause (iv) if (A) after
such merger or consolidation the voting securities of the Company prior to such
merger or consolidation continue to represent more than 50% of the combined
voting power of such Person or (B) if such merger or consolidation does not
result in a material change in the beneficial ownership of the Company's voting
securities.

         "Incumbent Members" shall mean the members of the Board on the date
immediately preceding the commencement of a twelve-month period, provided that
any person becoming a Director during such twelve-month period whose election or
nomination for election was approved by a majority of the Directors who, on the
date of such election or nomination for election, comprised the Incumbent
Members shall be considered one of the Incumbent Members in respect of such
twelve-month period.

         "Oaktree" shall mean Oaktree Capital Management, LLC and its
Affiliates, including any partnerships, separate accounts or other entities
managed by Oaktree.

         "TCW" shall mean: TCW Special Credits Plus Fund; TCW Special Credits
Fund III; TCW Special Credits Fund IIIb; TCW Special Credits Fund IV; TCW
Special Credits Trust; TCW Special Credits Trust IIIb; TCW Special Credits Trust
IV; TCW Special Credits Trust IV; TCW Special Credits, as investment manager of
Delaware

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State Employees' Retirement Fund, Weyerhauser Company Pension Trust and The
Common Fund for Bond Investments; and any of their respective Affiliates.

         13. INVESTMENT REPRESENTATION. Each Agreement may provide that, upon
demand by the Committee for such a representation, the Optionee shall deliver to
the Committee at the time of any exercise of an Option a written representation
that the Shares to be acquired upon such exercise are to be acquired for
investment and not for resale or with a view to the distribution thereof. Upon
such demand, delivery of such representation prior to the delivery of any Shares
issued upon exercise of an Option shall be a condition precedent to the right of
the Optionee or such other person to purchase any Shares.

         14. DURATION OF THE PLAN. Options and Stock Appreciation Rights may not
be granted and Restricted Stock may not be sold or granted under the Plan after
December 9, 2007.

         15. AMENDMENT AND TERMINATION OF THE PLAN. The Board may at any time
alter, amend, suspend or terminate the Plan. The Committee may amend the Plan or
any Agreement issued hereunder to the extent necessary for any Option or Stock
Appreciation Right granted or Restricted Stock sold or granted under the Plan to
comply with applicable tax or securities laws.

         No Option or Stock Appreciation Right may be granted or Restricted
Stock sold or granted during any suspension or after the termination of the
Plan. No amendment, suspension or termination of the Plan or of any Agreement
issued hereunder shall, without the consent of the affected holder of such
Option or Stock Appreciation Right or Restricted Stock, alter or impair any
rights or obligations in any Option or Stock Appreciation Right or Restricted
Stock theretofore granted or sold to such holder under the Plan.

         16. NATURE OF THE PLAN. The grant, exercise or sale of securities under
the Plan is intended to qualify for the exemption from short swing profits
liability under Section 16(b) of the Exchange Act, provided by Rule 16b-3
promulgated thereunder, as such Rule is now in effect or hereafter amended.

         17. CANCELLATION OF OPTIONS. Any Option granted under the Plan may be
canceled at any time with the consent of the holder and a new Option may be
granted to such holder in lieu thereof.

         18. WITHHOLDING TAXES. Whenever Shares are to be issued with respect to
the exercise of Options or amounts are to be paid or income earned with respect
to Stock Appreciation Rights or Restricted Stock under the Plan, the Committee
in its discretion may require the Participant to remit to the Company, prior to
the delivery of any certificate or certificates for such Shares or the payment
of any such amounts, all or any part of the amount determined in the Committee's
discretion to be sufficient to satisfy federal, state and local withholding tax
obligations (the "Withholding Obligation") that the Company or its counsel
determines may arise with respect to such exercise, issuance or payment.
Pursuant to a procedure established by the Committee, the Participant may (i)
request the Company to withhold delivery of a sufficient number of Shares or a
sufficient amount of the Participant's compensation or (ii) deliver a sufficient
number of previously-issued Shares, to satisfy the Withholding Obligation.

         19. NO RIGHTS AS STOCKHOLDER. No Participant shall have any rights as a
Stockholder with respect to any Shares subject to his or her Option or Stock
Appreciation Right prior to the date of issuance to him or her of a certificate
or certificate for such Shares.

         20. COMPLIANCE WITH GOVERNMENT LAW AND REGULATIONS. The Plan, the grant
and exercise of Options and Stock Appreciation Rights, and the grant and sale of
Restricted Stock thereunder, and the obligation of the Company to sell and
deliver Shares under such Options and Stock Appreciation Rights, shall be
subject to all applicable laws, rules and regulations and to such approvals by
any government or regulatory agency that may be required. The Company shall not
be required to issue or deliver any certificates for Shares prior to (i) the
listing of such Shares on any stock exchange on which Shares may then be listed
and (ii) the completion of any registration or qualification of such Shares
under any state or federal law, or any ruling or regulation of any governmental
body which the Company shall, in its sole discretion, determine to be necessary
or advisable.<PAGE>   1
                                                                    Exhibit 4(i)

                                                                  CONFORMED COPY
                                                                  --------------

                                     AMENDMENT NO. 2

               AMENDMENT NO. 2 dated as of June 9, 2000 (the "SECOND AMENDMENT")
to the Credit Agreement, dated as of December 4, 1998, as amended by the Waiver,
dated as of January 19, 1999, the Amendment No. 1 and Consent, dated as of
October 13, 1999, and the Waiver No. 2, dated as of February 14, 2000 (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 NEW YORK
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, the Borrower wishes to amend the Credit Agreement as
described herein; and

               WHEREAS, the Lenders and the Administrative Agent consent to the
proposed amendments under the following terms and conditions;

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

I.      AMENDMENTS

               A. DEFINED TERMS. Unless otherwise noted, capitalized terms have
the meanings given to them in the Credit Agreement.

               B.  AMENDMENT OF SUBSECTION 1.1 (DEFINED TERMS).

               1. Subsection 1.1 of the Credit Agreement is hereby amended
by adding the following definitions in their proper alphabetical order:

               "MAXIMUM NON-STERLING OPTIONAL CURRENCY AMOUNT" shall have the
       meaning specified in subsection 2.4(i).

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                                                                               2

               "MAXIMUM OPTIONAL CURRENCY AMOUNT" shall have the meaning
       specified in subsection 2.4(ii).

               "`SUBSTRAL ACQUISITION' means the proposed acquisition by OMS
       Investments, Inc. and certain Foreign Subsidiaries of certain assets of
       Henkel KGaA and its affiliates related to their consumer home and garden
       plant care business under the Substral, Blomin, Simontrop or other brand
       names."

               "`WHOLLY OWNED SUBSIDIARY' or `WHOLLY-OWNED SUBSIDIARY' means any
       subsidiary of any Person all of the Capital Stock of which (other than
       directors' qualifying shares required by law) is owned by such Person
       directly and/or through other wholly owned Subsidiaries."

               2. Subsection 1.1 of the Credit Agreement is hereby further
amended by deleting in the definition of "Permitted Acquisition" clause (c)(v)
thereof and substituting, in lieu thereof, the following new clause (c)(v):

               "(v) after giving effect to the consummation thereof, the
       aggregate amount of consideration (whether cash or property, as valued in
       good faith by the Board of Directors of the Borrower) for all Permitted
       Acquisitions other than the ASEF Acquisition and the Ortho Acquisition
       shall not exceed in the aggregate: (A) $100,000,000 if such acquisition
       or acquisitions shall occur prior to or during fiscal year 2000; (B)
       $175,000,000 (representing an incremental $75,000,000) if such
       acquisition or acquisitions shall occur prior to or during fiscal year
       2001; (C) $200,000,000 (representing an incremental $25,000,000) if such
       acquisition or acquisitions shall occur prior to or during fiscal year
       2002; and (D) $225,000,000 (representing an incremental $25,000,000)
       thereafter."

               C. AMENDMENT OF SUBSECTION 2.4 (REVOLVING CREDIT COMMITMENT).
Subsection 2.4 of the Credit Agreement is hereby amended by deleting the second
proviso to the first sentence therein in its entirety and by substituting, in
lieu thereof, the following:

       "PROVIDED further that the Revolving Credit Lenders shall not make any
       Revolving Credit Loans in Optional Currencies if, after giving effect to
       the making of any such Revolving Credit Loan:

                      (i) the sum of the Dollar Equivalent of the then
               outstanding Revolving Credit Loans in Optional Currencies other
               than Sterling and the then outstanding L/C Obligations in
               Optional Currencies other than Sterling would exceed the Optional
               Currency Equivalent of the product of (p) $120,000,000 and (q)
               the ratio of (1) the sum of the Total Revolving Credit
               Commitments as of the Closing Date and the aggregate amount of
               increases in the Total Revolving Credit Commitments pursuant to
               subsection 2.28 since the Closing Date over (2) the Total
               Revolving Credit Commitments as of the Closing Date (such
               Optional Currency Equivalent the "MAXIMUM NON-STERLING OPTIONAL
               CURRENCY AMOUNT"); or

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                                                                               3

                      (ii) the sum of the Dollar Equivalent of the then
               outstanding Revolving Credit Loans in Optional Currencies
               including Sterling and the then outstanding L/C Obligations in
               Optional Currencies including Sterling would exceed the Optional
               Currency Equivalent of the product of (p) $225,000,000 and (q)
               the ratio of (1) the sum of the Total Revolving Credit
               Commitments as of the Closing Date and the aggregate amount of
               increases in the Total Revolving Credit Commitments pursuant to
               subsection 2.28 since the Closing Date over (2) the Total
               Revolving Credit Commitments as of the Closing Date (such
               Optional Currency Equivalent the "MAXIMUM OPTIONAL CURRENCY
               AMOUNT") and"

               D. AMENDMENT OF SUBSECTION 2.12 (MANDATORY PREPAYMENTS).
Subsection 2.12(d) of the Credit Agreement is hereby amended by deleting such
subsection in its entirety and by substituting, in lieu thereof, the following:

               "(d) Unless the Required Prepayment Lenders shall otherwise
       agree, if on any date the Borrower or any of its Subsidiaries shall
       receive Net Cash Proceeds from any Asset Sale (including any Asset Sale
       permitted under clause (c) of subsection 7.9) or Recovery Event then,
       unless a Reinvestment Notice shall be delivered in respect thereof, an
       amount equal to such Net Cash Proceeds shall be paid by the Borrower or
       any of its Subsidiaries, and shall be applied on such date toward the
       prepayment of the Term Loans and the reduction of the Revolving Credit
       Commitments as set forth in subsection 2.12(f); PROVIDED, that,
       notwithstanding the foregoing, (i) the aggregate Net Cash Proceeds of
       Asset Sales and Recovery Events that may be excluded from the foregoing
       requirement pursuant to a Reinvestment Notice shall not exceed (x) if the
       Net Cash Proceeds are of Asset Sales of (1) assets of Phostrogen Limited
       or (2) assets of the Borrower or OMS Investments, Inc. and used in the
       Borrower's "Professional Turf" line of business, $50,000,000 in the
       aggregate, (y) if the Net Cash Proceeds are of the sale and leaseback of
       the Borrower's North American headquarters in Marysville, Ohio,
       $10,000,000 in the aggregate, and (z) otherwise, $25,000,000 in any
       fiscal year of the Borrower or $100,000,000 in the aggregate, and (ii) on
       each Reinvestment Prepayment Date, an amount equal to the Reinvestment
       Prepayment Amount with respect to the relevant Reinvestment Event shall
       be applied toward the prepayment of the Term Loans and the reduction of
       the Revolving Credit Commitments as set forth in subsection 2.12(f)."

               E.  AMENDMENT OF SUBSECTION 2.18 (PRO RATA TREATMENT AND
       PAYMENTS).

               1. Subsection 2.18(c)(i)(A) of the Credit Agreement is hereby
amended by deleting such subsection in its entirety and by substituting, in lieu
thereof, the following:

               "(A) if such Asset Sale is of the Capital Stock of a Subsidiary
       Borrower that is the borrower of the Tranche A French Subtranche Term
       Loans, the Tranche A German Subtranche Term Loans or the Tranche A
       British Subtranche Term Loans or of any assets of such Subsidiary
       Borrower or any Subsidiary thereof, to the extent that such subtranche of
       Tranche A Term Loans are then outstanding, to such Tranche A French
       Subtranche Term Loans, to such Tranche A German Subtranche Term Loans or
       to the Tranche A British Subtranche Term Loans, as the case may be, in
       each case PRO RATA to the remaining

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                                                                               4

       installments thereof, and thereafter as provided above; provided that any
       such application to the Tranche A British Subtranche Term Loans may, at
       the option of such Subsidiary Borrower, first be applied to the Tranche A
       British Subtranche Term Loans made by Lenders that are not Eligible U.K.
       Banks and thereafter to the Tranche A British Subtranche Term Loans made
       by Eligible U.K. Banks; and"

               2. Subsection 2.18(c)(i)(B) of the Credit Agreement is hereby
amended by deleting therefrom the phrase "the other Tranche A British Subtranche
Term Loans and".

               F. AMENDMENT OF SECTION 2 (AMOUNT AND TERMS OF LOANS). Section 2
of the Credit Agreement is hereby amended by adding the following new subsection
2.28 to the end thereof:

                "2.28 COMMITMENT INCREASES. (a) From time to time the Borrower
       may, with the consent of the Administrative Agent and one or more of the
       Revolving Credit Lenders, increase the Revolving Credit Commitments of
       such Revolving Credit Lenders by an aggregate amount of not less than
       $25,000,000. Any such increase in the Revolving Credit Commitment of any
       Revolving Credit Lender shall be evidenced by the execution and delivery
       by the Borrower, the Subsidiary Borrowers, the Administrative Agent and
       such Revolving Credit Lender of a Commitment Increase Supplement,
       substantially in the form of Exhibit N (a "COMMITMENT INCREASE
       SUPPLEMENT"), and shall be effective as of the date specified for
       effectiveness in such Commitment Increase Supplement, whereupon such
       Revolving Credit Lender shall be bound by and entitled to the benefits of
       this Agreement with respect to the full amount of its Revolving Credit
       Commitment as so increased, and Schedule 1 shall be deemed to be amended
       to so increase the Revolving Credit Commitment of such Lender.

               (b) If, on the date upon which the Revolving Credit Commitment of
       any Revolving Credit Lender is increased pursuant to subsection 2.28(a),
       there is an unpaid principal amount of Revolving Credit Loans in any
       currency to the Borrower or any Subsidiary Borrower in which such
       Revolving Credit Lender has agreed to participate, the principal
       outstanding amount of all such Revolving Credit Loans shall (A) in the
       case of such Revolving Credit Loans which are ABR Loans, be immediately
       prepaid by the Borrower or Subsidiary Borrower (but all such Revolving
       Credit Loans may, on the terms and conditions hereof, be reborrowed on
       such date on a pro rata basis, based on the revised Revolving Credit
       Commitments as then in effect) and (B) in the case of such Revolving
       Credit Loans which are LIBOR Loans, continue to remain outstanding
       (notwithstanding any other requirement in this Agreement that such
       Revolving Credit Loans be held on a pro rata basis based on the revised
       Revolving Credit Commitments as then in effect) until the end of the then
       current Interest Period therefor, at which time such LIBOR Loans shall be
       paid by the Borrower or Subsidiary Borrower (but all such Revolving
       Credit Loans may, on the terms and conditions hereof, be reborrowed on
       such date on a pro rata basis, based on the Revolving Credit Commitments
       as then in effect).

               (c) Notwithstanding anything to the contrary in this subsection
       2.28, (i) in no event shall any transaction effected pursuant to this
       subsection 2.28 cause the aggregate Revolving Credit Commitments to
       exceed $575,000,000, less the aggregate amount of any

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                                                                               5

       reduction in the Revolving Credit Commitments pursuant to subsection 2.10
       or 2.12, and (ii) no Lender shall have any obligation to increase its
       Revolving Credit Commitment unless it agrees to do so in its sole
       discretion. Each Commitment Increase Supplement shall be deemed to be a
       supplement to this Agreement."

               G. AMENDMENT OF SUBSECTION 6.13 (ADDITIONAL COLLATERAL, ETC.).

               1. Subsection 6.13(c) of the Credit Agreement is hereby amended
by adding at the end thereof immediately prior to the period the following:

               ", PROVIDED that, if the initial investment in or purchase price
       of such new Domestic Subsidiary is less than $1,000,000, the obligations
       of the Borrower discussed in clauses (i) through (iv) of this subsection
       6.13(c) shall not take effect unless and until the financial statements
       delivered to the Administrative Agent following the end of each fiscal
       year of the Borrower pursuant to subsection 6.1(a) show the tangible net
       worth of such new Domestic Subsidiary to be more than $1,000,000"

               2. Subsection 6.13(d) of the Credit Agreement is hereby amended
by (a) deleting the word "Subsidiaries" that appears before clause (i) thereof,
(b) adding in lieu thereof the words "Domestic Subsidiaries or any Foreign
Subsidiary Borrower", and (c) adding at the end of the first sentence thereof
immediately prior to the period the following:

               ", PROVIDED that, if the initial investment in or purchase price
       of such new Foreign Subsidiary or Foreign Subsidiary Borrower (as
       applicable) is less than $1,000,000, the obligations of the Borrower
       discussed in clauses (i) through (iv) of this subsection 6.13(d) shall
       not take effect unless and until the financial statements delivered to
       the Administrative Agent following the end of each fiscal year of the
       Borrower pursuant to subsection 6.1(a) show the tangible net worth of
       such new Foreign Subsidiary or Foreign Subsidiary Borrower (as
       applicable) to be more than $1,000,000"

               3. Subsection 6.13(e) of the Credit Agreement is hereby amended
by adding at the end thereof immediately prior to the period the following:

               ", PROVIDED that, if the initial investment in or purchase price
       of such new Excluded Foreign Subsidiary is less than $1,000,000, the
       obligations of the Borrower discussed in clauses (i) through (iii) of
       this subsection 6.13(e) shall not take effect unless and until the
       financial statements delivered to the Administrative Agent following the
       end of each fiscal year of the Borrower pursuant to subsection 6.1(a)
       show the tangible net worth of such new Excluded Foreign Subsidiary to be
       more than $1,000,000"

               H. AMENDMENT OF SUBSECTION 7.1 (LIMITATION ON LIENS). Subsection
7.1 of the Credit Agreement is hereby amended by deleting the word "and" at the
end of clause (m) thereof, deleting the period at the end of clause (n) thereof,
inserting in lieu thereof "; and", and adding immediately thereafter the
following:

<PAGE>   6

                                                                               6

               "(o) Purchase money Liens on assets acquired with seller-financed
       Indebtedness permitted pursuant to subsection 7.6(m), so long as such
       Liens encumber only assets (and proceeds thereof) acquired with such
       Indebtedness and do not secure any other Indebtedness."

               I. AMENDMENT OF SUBSECTION 7.2 (LIMITATION ON CONTINGENT
OBLIGATIONS). Subsection 7.2 of the Credit Agreement is hereby amended by
deleting such subsection in its entirety and by substituting, in lieu thereof,
the following:

               "7.2 LIMITATION ON CONTINGENT OBLIGATIONS. Agree to or assume,
       guarantee, indorse or otherwise in any way be or become responsible or
       liable for, directly or indirectly, any Contingent Obligation except for
       (i) the guarantees contemplated by the Guarantee and Collateral
       Agreements, (ii)(x) guarantees by the Borrower of Indebtedness of Foreign
       Subsidiary Borrowers in an aggregate amount not to exceed $25,000,000 at
       any one time outstanding, (y) guarantees by the Borrower of Permitted
       Foreign Debt of any Foreign Subsidiary, PROVIDED that such Permitted
       Foreign Debt is not secured by any Liens, and (z) guarantees by Foreign
       Subsidiaries of Permitted Foreign Debt and other obligations of other
       Foreign Subsidiaries, the Dollar Equivalent of which Permitted Foreign
       Debt and other such obligations shall not exceed $50,000,000 in aggregate
       principal outstanding at any time, (iii) guarantees in existence on the
       Closing Date as described in Schedule 7.2(iii), (iv) Contingent
       Obligations in an aggregate amount not to exceed $20,000,000 at any one
       time outstanding, (v) Contingent Obligations of any Subsidiary Guarantor
       in respect of Indebtedness permitted under subsection 7.6(e), PROVIDED
       that such Contingent Obligations are subordinated to the same extent as
       the obligations of the Borrower in respect of the related Indebtedness,
       (vi) to the extent that any of the obligations of the Borrower under the
       Roundup Agreement may constitute Contingent Obligations, such
       obligations, (vii) any guarantees of the Borrower or any of its
       Subsidiaries under clause (ii) of subsection 5.1(d), (viii) any guarantee
       of the obligations of the Borrower by its Subsidiaries of Indebtedness
       under the Senior Subordinated Notes and the Bridge Subordinated Debt
       Documents (if any) PROVIDED that such Contingent Obligations are
       subordinated to the same extent as the obligations of the Borrower in
       respect of the related Indebtedness, or (ix) any guarantee by the
       Borrower of Indebtedness incurred by OMS Investments, Inc. in connection
       with the Substral Acquisition."

               J. AMENDMENT OF SUBSECTION 7.4 (LIMITATION ON CAPITAL
EXPENDITURES). Subsection 7.4 of the Credit Agreement is hereby amended by
deleting in each instance "$70,000,000" and by replacing it with "$90,000,000".

               K. AMENDMENT OF SUBSECTION 7.6 (LIMITATION ON INDEBTEDNESS).

               1. Subsection 7.6 of the Credit Agreement is hereby amended by
deleting in clause (f) thereof "$10,000,000" and inserting in lieu thereof
"$20,000,000".

               2. Subsection 7.6 of the Credit Agreement is hereby further
amended by deleting the word "and" at the end of clause (k) thereof, deleting
the period at the end of clause (l), inserting in lieu thereof "; and", and
adding immediately thereafter the following:

<PAGE>   7
                                                                               7

               "(m) seller-financed Indebtedness (i) incurred by OMS
       Investments, Inc. in connection with its acquiring trademarks and trade
       names as part of the Substral Acquisition or (ii) incurred by the
       Borrower or any of its Subsidiaries in an aggregate principal amount not
       to exceed $40,000,000 at any one time outstanding."

               L. FORM OF COMMITMENT INCREASE SUPPLEMENT. The Credit Agreement
is hereby amended by adding a new Exhibit N in the form attached to this Second
Amendment as Annex A.

               M. AMENDMENT OF CERTAIN AMOUNTS. Subsections 2.12, 2.14, 2.25 and
3.1 of the Credit Agreement are hereby amended by deleting the amounts
"$120,000,000" and "$225,000,000" whereever they appear therein and by
substituting in lieu thereof the phrases "Maximum Non-Sterling Optional Currency
Amount" and "Maximum Optional Currency Amount" respectively.

II.     GENERAL PROVISIONS

               A. REPRESENTATIONS AND WARRANTIES. On and as of the date hereof,
and after giving effect to this Second Amendment, each of the Borrower and each
applicable Subsidiary 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 each of the Borrower
and each applicable Subsidiary Borrower hereby confirms, reaffirms and restates
such representations and warranties as of such earlier date.

               B. CONDITIONS TO EFFECTIVENESS. This Second Amendment shall
become effective as of the date (the "ACCEPTANCE DATE") the Administrative Agent
receives counterparts of this Second Amendment, duly executed and delivered by
the Borrower, each Subsidiary Borrower, the Administrative Agent and the
Required Lenders, PROVIDED that the amendments described in Sections I.D and I.E
hereof shall become effective as of the date (the "SECOND ACCEPTANCE DATE") the
Administrative Agent receives counterparts of this Second Amendment, duly
executed and delivered by the Borrower, each Subsidiary Borrower, the
Administrative Agent and the Required Prepayment Lenders.

               C. CONTINUING EFFECT; NO OTHER AMENDMENTS. Except as expressly
amended or waived hereby, all of the terms and provisions of the Credit
Agreement are and shall remain in full force and effect. The amendments provided
for herein are limited to the specific subsections of the Credit Agreement
specified herein and shall not constitute an amendment of, or an indication of
any Lender's willingness to amend or 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
Amendment).

               D. 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 Amendment,
including, without limitation, the reasonable fees and disbursements of counsel
to the Administrative Agent.

<PAGE>   8
                                                                               8

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

               F. COUNTERPARTS. This Second Amendment 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>   9

               IN WITNESS WHEREOF, the parties hereto have caused this Second
Amendment 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
                              ------------------------------------------------
                              Name:  Rebecca J. Bruening
                              Title: Vice President, Corporate
                                     Treasurer

                          OM SCOTT INTERNATIONAL INVESTMENTS
                          LTD.

                          By: /s/ Rebecca J. Bruening
                              ------------------------------------------------
                              Name:  Rebecca J. Bruening
                              Title: Power of Attorney

                          MIRACLE GARDEN CARE LIMITED

                          By: /s/ Rebecca J. Bruening
                              ------------------------------------------------
                              Name:  Rebecca J. Bruening
                              Title: Power of Attorney

                          SCOTTS HOLDINGS LIMITED

                          By: /s/ Rebecca J. Bruening
                              ------------------------------------------------
                              Name:  Rebecca J. Bruening
                              Title: Power of Attorney

                          HYPONEX CORPORATION

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

<PAGE>   10

                          SCOTTS' MIRACLE-GRO PRODUCTS, INC.

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

                          SCOTTS-SIERRA HORTICULTURAL PRODUCTS
                          COMPANY

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

                          REPUBLIC TOOL & MANUFACTURING CORP.

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

                          SCOTTS-SIERRA INVESTMENTS, INC.

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

                          SCOTTS FRANCE HOLDINGS SARL

                          By: /s/ Rebecca J. Bruening
                              ------------------------------------------------
                              Name:  Rebecca J. Bruening
                              Title: Power of Attorney

                          SCOTTS FRANCE SARL

                          By: /s/ Rebecca J. Bruening
                              ------------------------------------------------
                              Name:  Rebecca J. Bruening
                              Title: Power of Attorney

<PAGE>   11

                          SCOTTS HOLDING GMBH

                          By:  /s/ Rebecca J. Bruening
                               -----------------------------------------------
                               Name:  Rebecca J. Bruening
                               Title: Power of Attorney

                          SCOTTS CELAFLOR GMBH & CO. KG

                          By:  /s/ Rebecca J. Bruening
                               -----------------------------------------------
                               Name:  Rebecca J. Bruening
                               Title: Power of Attorney

                          SCOTTS ASEF BVBA

                          By:  /s/ Rebecca J. Bruening
                               -----------------------------------------------
                               Name:  Rebecca J. Bruening
                               Title: Vice President of Scotts-Sierra
                                      Investments, Inc., as shareholder

                          THE SCOTTS COMPANY (UK) LTD.

                          By:  /s/ Rebecca J. Bruening
                               -----------------------------------------------
                               Name:  Rebecca J. Bruening
                               Title: Power of Attorney

<PAGE>   12

                          SCOTTS CANADA LTD.

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

                          SCOTTS EUROPE B.V.

                          By:  /s/ Rebecca J. Bruening
                               -----------------------------------------------
                               Name:  Rebecca J. Bruening
                               Title: Power of Attorney

                          ASEF B.V.

                          By:  /s/ Rebecca J. Bruening
                               -----------------------------------------------
                               Name:  Rebecca J. Bruening
                               Title: Power of Attorney

                          SCOTTS AUSTRALIA PTY LTD.

                          By:  /s/ Rebecca J. Bruening
                               -----------------------------------------------
                               Name:  Rebecca J. Bruening
                               Title: Power of Attorney

                          SALOMON SMITH BARNEY, INC., as Syndication
                          Agent

                          By:  /s/ Nicolas T. Erni
                               -----------------------------------------------
                               Name:  Nicolas T. Erni
                               Title: Attorney In Fact

<PAGE>   13

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

                         By:  /s/ Robert Ivosevich
                              ------------------------------------------------
                              Name:  Robert Ivosevich
                              Title: Senior Vice President

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

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

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

                         By:  /s/ Randolph E. Cates
                              ------------------------------------------------
                              Name:  Randolph E. Cates
                              Title: Vice President

                         ABN AMRO BANK N.V., Pittsburgh

                         By:  /s/ Laurie D. Flom
                              ------------------------------------------------
                              Name:  Laurie D. Flom
                              Title: Group Vice President

                         By:  /s/ Thomas M. Toerpe
                              ------------------------------------------------
                              Name:  Thomas M. Toerpe
                              Title: Vice President

<PAGE>   14

                         AMMC CDO I, LIMITED
                         By:  American Money Management Corp., as
                         Collateral Manager

                         By:  /s/ David P. Meyer
                              ------------------------------------------------
                              Name:  David P. Meyer
                              Title: Vice President

                         AERIES - II FINANCE LTD.
                         By: INVESCO Senior Secured Management, Inc., as
                              Sub-Managing Agent

                         By:  /s/ Thomas H.B. Ewald
                              ------------------------------------------------
                              Name:  Thomas H.B. Ewald
                              Title: Authorized Signatory

                         ALLSTATE LIFE INSURANCE CO.

                         By:  /s/ Patricia W. Wilson
                              ------------------------------------------------
                              Name:  Patricia W. Wilson
                              Title: Authorized Signatory

                         By:  /s/ Daniel C. Leimbach
                              ------------------------------------------------
                              Name:  Daniel C. Leimbach
                              Title: Authorized Signatory

                         ARES LEVERAGED INVESTMENT FUND II, L.P.
                         By: ARES Management II, L.P., its General Partner

                         By:  /s/ Seth J. Brufsky
                              ------------------------------------------------
                              Name:  Seth J. Brufsky
                              Title: Vice President

<PAGE>   15

                         ATHENA CDO, LIMITED
                         By: Pacific Investment Management Company as its
                             investment advisor

                         By:  /s/ Bradley W. Paulson
                              ------------------------------------------------
                              Name:  Bradley W. Paulson
                              Title: Senior Vice President

                         BHF (USA) CAPITAL CORPORATION

                         By:  /s/ Nina Zhou
                              ------------------------------------------------
                              Name:  Nina Zhou
                              Title: Associate

                         By:  /s/ Perry Forman
                              ------------------------------------------------
                              Name:  Perry Forman
                              Title: Vice President

                         BW CAPITAL MARKETS, INC.

                         By:  /s/ Richard P. Vrfer
                              ------------------------------------------------
                              Name:  Richard P. Vrfer
                              Title: President

                         By:  /s/ Philip G. Waldrop
                              ------------------------------------------------
                              Name:  Philip G. Waldrop
                              Title: Vice President

<PAGE>   16

                         BALANCED HIGH YIELD FUND II LTD.
                         By:  BHF (USA) Capital Corporation, as Attorney-
                              in-Fact

                         By:  /s/ Nina Zhou
                              ------------------------------------------------
                              Name:  Nina Zhou
                              Title: Associate

                         By:  /s/ Perry Forman
                              ------------------------------------------------
                              Name:   Perry Forman
                              Title:  Vice President

                         BANK AUSTRIA CREDITANSTALT
                         CORPORATE FINANCE, INC.

                         By:  /s/ G. Steven Kalin
                              ------------------------------------------------
                              Name:  G. Steven Kalin
                              Title: Vice President

                         By:  /s/ David M. Harnisch
                              ------------------------------------------------
                              Name:  David M. Harnisch
                              Title: Vice President

                         BANK OF AMERICA, N.A.

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

                         BANK OF HAWAII

                         By:  /s/ Luke Yeh
                              ------------------------------------------------
                              Name:  Luke Yeh
                              Title: Vice President

<PAGE>   17

                         BANK OF MONTREAL

                         By:  /s/ Michael P. Joyce
                              ------------------------------------------------
                              Name:  Michael P. Joyce
                              Title: Managing Director

                         THE BANK OF NEW YORK

                         By:  /s/ Thomas C. McCrohan
                              ------------------------------------------------
                              Name:  Thomas C. McCrohan
                              Title: Vice President

                         THE BANK OF NOVA SCOTIA

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

                         BANK OF TOKYO-MITSUBISHI TRUST
                         COMPANY

                         By:  /s/ Heather Zimmerman
                              ------------------------------------------------
                              Name:  Heather Zimmerman
                              Title: Vice President

                         BANQUE NATIONALE DE PARIS

                         By:  /s/ Jo Ellen Bender
                              ------------------------------------------------
                              Name:  Jo Ellen Bender
                              Title: Senior Vice President

<PAGE>   18

                         BLACK DIAMOND CLO 1998-1 LTD.

                         By:  /s/ John H. Cullinane
                              ------------------------------------------------
                              Name:  John H. Cullinane
                              Title: Director

                         CAPTIVA III FINANCE LTD.

                         By:  /s/ David Dyer
                              ------------------------------------------------
                              Name:  David Dyer
                              Title: Director

                         CERES FINANCE, LTD.
                         By:  INVESCO Senior Secured Management, Inc., as
                              Sub-Managing Agent

                         By:  /s/ Thomas H.B. Ewald
                              ------------------------------------------------
                              Name:  Thomas H.B. Ewald
                              Title: Authorized Signatory

                         CITICORP USA, INC.

                         By:  /s/ Nicolas T. Erni
                              ------------------------------------------------
                              Name:  Nicolas T. Erni
                              Title: Vice President

                         COMERICA BANK, Detroit

                         By:  /s/ Anthony L. Davis
                              ------------------------------------------------
                              Name:  Anthony L. Davis
                              Title: Assistant Vice President

<PAGE>   19

                        CREDIT AGRICOLE INDOSUEZ, Chicago

                        By:  /s/ Theodore D. Tice
                             -------------------------------------------------
                             Name:  Theodore D. Tice
                             Title: Vice President
                                    Senior Relationship Manager

                        By:  /s/ Alan I. Schmeizer
                             -------------------------------------------------
                             Name:  Alan I. Schmeizer
                             Title: Vice President
                                    Senior Relationship Manager

                        CYPRESSTREE INSTITUTIONAL FUND, LLC
                        By: CypressTree Investment Management Company,
                            Inc. its Managing Member

                        By:  /s/ Jonathan D. Sharkey
                             -------------------------------------------------
                             Name:  Jonathan D. Sharkey
                             Title: Principal

                        CYPRESSTREE INVESTMENT FUND, LLC
                        By: CypressTree Investment Management Company,
                            Inc. its Managing Member

                        By:  /s/ Jonathan D. Sharkey
                             -------------------------------------------------
                             Name:  Jonathan D. Sharkey
                             Title: Principal

                        DELANO COMPANY
                        By: Pacific Investment Management Company as its
                            investment advisor

                        By:  /s/ Bradley W. Paulson
                             -------------------------------------------------
                             Name:  Bradley W. Paulson
                             Title: Senior Vice President

<PAGE>   20

                        DRESDNER BANK AG, NEW YORK AND
                        GRAND CAYMAN BRANCHES

                        By:  /s/ Ken Hamilton
                             -------------------------------------------------
                             Name:  Ken Hamilton
                             Title: Senior Vice President

                        By:  /s/ Xinyue Jasmine Geffner
                             -------------------------------------------------
                             Name:  Xinyue Jasmine Geffner
                             Title: Assistant Vice President

                        ELC (CAYMAN) 2000-I LTD.

                        By:  /s/ E.A. Kratzman, III
                             -------------------------------------------------
                             Name:  E.A. Kratzman, III
                             Title: Managing Director
                                    IDM

                        EATON VANCE SENIOR INCOME TRUST
                        By:  Eaton Vance Management, as Investment
                             Advisor

                        By:  /s/ Scott H. Page
                             -------------------------------------------------
                             Name:  Scott H. Page
                             Title: Vice President

                        FIFTH THIRD BANK OF COLUMBUS

                        By:  /s/ Ted Lape
                             -------------------------------------------------
                             Name:  Ted Lape
                             Title: Vice President

<PAGE>   21

                         FIRST UNION NATIONAL BANK

                         By:  /s/ Joel Thomas
                             -------------------------------------------------
                              Name:  Joel Thomas
                              Title: Vice President

                         FOOTHILL INCOME TRUST,  L.P.
                         By: FIT GP LLC, its general partner

                         By:  /s/ Denis R. Ascher
                             -------------------------------------------------
                              Name:  Denis R. Ascher
                              Title: Managing Member

                         GENERAL ELECTRIC CAPITAL CORP.

                         By:  /s/ Robert M. Kadlick
                             -------------------------------------------------
                              Name:  Robert M. Kadlick
                              Title: Duly Authorized Signatory

                         HARRIS TRUST AND SAVINGS BANK

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

                         HELLER FINANCIAL INC.

                         By:  /s/ David R. Campbell
                             -------------------------------------------------
                              Name:  David R. Campbell
                              Title: Vice President

<PAGE>   22

                         THE HUNTINGTON NATIONAL BANK

                         By:  /s/ Mark A. Koscielski
                             -------------------------------------------------
                              Name:  Mark A. Koscielski
                              Title: Vice President

                         INDOSUEZ CAPITAL FUNDING IIA, LTD.
                         By: Indosuez Capital, as Portfolio Advisor

                         By:  /s/ Melissa Mora
                             -------------------------------------------------
                              Name:  Melissa Mora
                              Title: Vice President

                         KZH CRESCENT 3 LLC

                         By:  /s/ Nicholas Lucente
                             -------------------------------------------------
                              Name:  Nicholas Lucente
                              Title: Authorized Agent

                         KZH ING-3 LLC

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

                         KZH RIVERSIDE LLC

                         By:  /s/ Susan Lee
                             -------------------------------------------------
                              Name:  Susan Lee
                              Title: Authorized Agent
<PAGE>   23

                         KZH WATERSIDE LLC

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

                         KZH CNC LLC

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

                         KZH-CYPRESSTREE-1 LLC

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

                         KZH-ING-2 LLC

                         By:  /s/ Nicholas Lucente
                             -------------------------------------------------
                              Name:  Nicholas Lucente
                              Title: Authorized Agent

                         KZH-SOLEIL-2 LLC

                         By:  /s/ Nicholas Lucente
                             -------------------------------------------------
                              Name:  Nicholas Lucente
                              Title: Authorized Agent

                         KEYBANK NATIONAL ASSOCIATION

                         By:  /s/ Brendan A. Lawlor
                             -------------------------------------------------
                              Name:  Brendan A. Lawlor
                              Title: Vice President

<PAGE>   24

                         MONUMENTAL LIFE INSURANCE COMPANY

                         By:  /s/ John F. Bailey
                             -------------------------------------------------
                              Name:  John F. Bailey
                              Title: Vice President

                         BANK ONE, MICHIGAN, as successor to
                         NBD BANK

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

                         NATIONAL CITY BANK

                         By:  /s/ Anthony F. Salvatore
                             -------------------------------------------------
                              Name:  Anthony F. Salvatore
                              Title: Vice President

                         NORTH AMERICAN SENIOR FLOATING RATE
                         FUND
                         By: CypressTree Investment Management Company,
                              Inc. as Portfolio Manager

                         By:  /s/ Jonathan D. Sharkey
                             -------------------------------------------------
                              Name:  Jonathan D. Sharkey
                              Title: Principal

                         NUVEEN SENIOR INCOME FUND

                         By:  /s/ Lisa M. Mincheski
                             -------------------------------------------------
                              Name:  Lisa M. Mincheski
                              Title: Managing Director
<PAGE>   25

                         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 D. Krase
                             -------------------------------------------------
                              Name:  Scott D. Krase
                              Title: Vice President

                         OASIS COLLATERALIZED HIGH INCOME
                         By: INVESCO Senior Secured Management, Inc., as
                             Sub-Managing Agent

                         By:  /s/ Thomas H.B. Ewald
                             -------------------------------------------------
                              Name:  Thomas H.B. Ewald
                              Title: Authorized Signatory

                         OLYMPIC FUNDING TRUST, SERIES 1999-1

                         By:  /s/ Ashley R. Hamilton
                             -------------------------------------------------
                              Name:  Ashley R. Hamilton
                              Title: Authorized Agent

                         OSPREY INVESTMENTS PORTFOLIO
                         By: Citibank Global Asset Management

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

                         OXFORD STRATEGIC INCOME FUND
                         By: Eaton Vance Management
                             as Investment Advisor

                         By:  /s/ Scott H. Page
                             -------------------------------------------------
                              Name:  Scott H. Page
                              Title: Vice President

<PAGE>   26

                         PINEHURST TRADING, INC.

                         By: /s/ Ashley R. Hamilton
                             -------------------------------------------------
                             Name:  Ashley R. Hamilton
                             Title:   Assistant Vice President

                         SKM LIBERTYVIEW CBO I LTD.

                         By: /s/ Kenneth C. Kleger
                             -------------------------------------------------
                             Name:  Kenneth C. Kleger
                             Title: Authorized Signatory

                         SENIOR DEBT PORTFOLIO
                         By: Boston Management and Research, as
                             Investment Advisor

                         By: /s/ Scott H. Page
                             -------------------------------------------------
                             Name:  Scott H. Page
                             Title: Vice President

                         SUNTRUST BANK

                         By: /s/ Jennifer P. Harrelson
                             -------------------------------------------------
                             Name:  Jennifer P. Harrelson
                             Title: Managing Director

<PAGE>   27

                         TORONTO DOMINION (TEXAS) INC.

                         By:  /s/ Mark A. Baird
                             -------------------------------------------------
                              Name:  Mark A. Baird
                              Title: Vice President

                         VAN KAMPEN CLO I, LIMITED
                         By: Van Kampen Management Inc., as Collateral
                             Manager

                         By:  /s/ Darvin D. Pierce
                             -------------------------------------------------
                              Name:  Darvin D. Pierce
                              Title: Vice President

<PAGE>   28

                            ACKNOWLEDGMENT AND CONSENT
                            --------------------------

             In consideration of each Agent's and the Lenders' execution,
delivery and performance of the foregoing Amendment No. 2 (the "SECOND
AMENDMENT"), each of the undersigned hereby (i) acknowledges the terms and
provisions of the Second Amendment 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 as amended by the Second
Amendment 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 Amendment to which
this Acknowledgment and Consent is attached.

                                 SCOTTS' MIRACLE-GRO PRODUCTS, INC.
                                 SCOTTS-SIERRA HORTICULTURAL
                                   PRODUCTS COMPANY
                                 REPUBLIC TOOL & MANUFACTURING CORP.
                                 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
                                 EARTHGRO, INC.
                                 SANFORD SCIENTIFIC, INC.
                                 EG SYSTEMS, INC.
                                 SWISS FARMS PRODUCTS, INC.

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

                                 OLD FORT FINANCIAL CORP.

                                 By:  /s/ Rebecca J. Bruening
                                     -----------------------------------------
                                     Name:  Rebecca J. Bruening
                                     Title:   Treasurer

<PAGE>   29

                                                                         Annex A
                                                             to Second Amendment
                                                             -------------------

                                                                       EXHIBIT N
                                                      TO SCOTTS CREDIT AGREEMENT
                                                      --------------------------

                   [FORM OF COMMITMENT INCREASE SUPPLEMENT]

             SUPPLEMENT, dated __________, to the Credit Agreement dated as of
December 4, 1998 as amended by the Waiver, dated as of January 19, 1999, the
Amendment No. 1 and Consent, dated as of October 13, 1999, the Waiver No. 2,
dated as of February 14, 2000, and the Amendment No. 2 (the "Second Amendment")
dated as of June __, 2000, 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 NEW YORK 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, the Credit Agreement provides in subsection 2.28(a)
thereof that any Lender to which a Commitment Increase Offer is addressed may
increase the amount of its Revolving Credit Commitment by executing and
delivering to the Borrower, the Subsidiary Borrowers and the Administrative
Agent a supplement to the Credit Agreement in substantially the form of this
Supplement; and

             WHEREAS, the undersigned now desires to increase the amount of its
Revolving Credit Commitment under the Credit Agreement;

             NOW THEREFORE, the undersigned hereby agrees as follows:

<PAGE>   30

                                                                               2

       1. The undersigned agrees, subject to the terms and conditions of the
Credit Agreement, that on the date this Supplement is accepted by the Borrower,
the Subsidiary Borrowers and the Administrative Agent (a) it shall have its
Revolving Credit Commitment increased by $____________, thereby making the
amount of its Revolving Credit Commitment $___________, and (b) it shall have
its maximum commitments to make Revolving Credit Loans in each of the Optional
Currencies increased (if at all) to the amounts specified in Schedule N-1
hereto.

       2. Terms defined in the Credit Agreement shall have their defined
meanings when used herein.

<PAGE>   31

             IN WITNESS WHEREOF, the undersigned has caused this Supplement to
be executed and delivered by a duly authorized officer on the date first above
written.

[INSERT NAME OF LENDER]

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

Accepted this _____ day of
____________________, ________________.

THE SCOTTS COMPANY

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

OM SCOTT INTERNATIONAL INVESTMENTS LTD.

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

MIRACLE GARDEN CARE LIMITED

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

<PAGE>   32

SCOTTS HOLDINGS LIMITED

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

HYPONEX CORPORATION

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

SCOTTS' MIRACLE-GRO PRODUCTS, INC.

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

SCOTTS-SIERRA HORTICULTURAL PRODUCTS COMPANY

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

REPUBLIC TOOL & MANUFACTURING CORP.

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

SCOTTS-SIERRA INVESTMENTS, INC.

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

<PAGE>   33

SCOTTS FRANCE HOLDINGS SARL

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

SCOTTS FRANCE SARL

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

SCOTTS HOLDING GMBH

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

SCOTTS CELAFLOR GMBH & CO. KG

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

SCOTTS ASEF BVBA

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

THE SCOTTS COMPANY (UK) LTD.

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

<PAGE>   34

SCOTTS CANADA LTD.

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

SCOTTS EUROPE B.V.

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

ASEF B.V.

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

SCOTTS AUSTRALIA PTY LTD.

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

Accepted this ____ day of
____________________, ________________.

THE CHASE MANHATTAN BANK,
as Administrative Agent

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

<PAGE>   35

                                                                  SCHEDULE N-1

                           [FORM OF SCHEDULE REGARDING
                 OPTIONAL CURRENCY MAXIMUM COMMITMENT INCREASE]

                                    [LENDER]

    OPTIONAL                                       MAXIMUM COMMITMENT
    CURRENCY

       []                                                  []

<PAGE>   36

                                                                  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.

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.

<PAGE>   37

         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.

                                       2

<PAGE>   38

         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>   39

                        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>   40

                        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>   41

                         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>   42

                          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>   43

                          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>   44

                          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>   45

                          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>   46

                          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:

<PAGE>   47

                          KZH CRESCENT 3 LLC

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

                          KZH III LLC

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

                          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>   48

                          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>   49

                          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>   50

                          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

                          NATIONAL WESTMINSTER BANK, PLC
                          By:
                              ------------------------------------------------
                              Name:
                              Title:

<PAGE>   51

                          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>   52

                          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>   53

                          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>   54

                          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>   55

                           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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