Document:

EX-10(R)

 

EXHIBIT
10(r)

Summary of Compensation for

Directors of

The Scotts Miracle-Gro Company

Effective as of February 1, 2008

 

     At the meeting of the Board of Directors (the “Board”) of The Scotts Miracle-Gro Company (the
“Company”) held on February 1, 2008, the Board approved the recommendations of the Governance and
Nominating Committee of the Board with respect to compensation for the calendar year 2008 for
nonemployee members of the Board (“Nonemployee Directors”) and the Lead Independent Director of the
Company. The compensation approved by the Board is described below.

Annual Cash Retainer; Reimbursement of Expenses

     Effective February 4, 2008, each of the Nonemployee Directors will be paid an annual cash
retainer in the amount of $100,000 and the Lead Independent Director will be paid an additional
annual cash retainer in the amount of $15,000. The annual cash retainer(s) will be paid on a
semi-annual basis, in February 2008 and in July 2008. Nonemployee Directors receive reimbursement
of all reasonable travel and other expenses of attending Board and Board committee meetings.

Deferred Stock Units

     On February 4, 2008: (a) each of the Nonemployee Directors was granted deferred stock units
having a value of $70,000; (b) the Lead Independent Director was granted additional deferred stock
units having a value of $35,000; (c) each of the Nonemployee Directors serving on one or more
committees of the Board was granted additional deferred stock units having a value of $12,500 for
each committee on which the Nonemployee Director serves; (d) each of the Nonemployee Directors
serving as the chairperson of a committee of the Board was granted additional deferred stock units
having a value of $25,000; and (e) each of the Nonemployee Directors serving on the Audit Committee
of the Board was granted additional deferred stock units having a value of $5,000. The number of
deferred stock units (and related dividend equivalents) granted to each Nonemployee Director
(including the Lead Independent Director) was calculated by dividing the aggregate value of
deferred stock units to be granted to such Nonemployee Director by the closing price of the
Company’s common shares on the February 4, 2008 grant date ($38.89) and rounding any resulting
fractional deferred stock unit up to the next whole deferred stock unit.

     The deferred stock units (and related dividend equivalents) were granted under The Scotts
Miracle-Gro Company Amended and Restated 2006 Long-Term Incentive Plan (the “2006 Plan”). Each
whole deferred stock unit represents the right to receive one full common share of

 

 

the Company at the time and in the manner described in the Deferred Stock Unit Award Agreement
for Nonemployee Directors (with Related Dividend Equivalents) evidencing the award. Each dividend
equivalent represents the right to receive additional deferred stock units (rounded to the nearest
1/16th of a deferred stock unit) in respect of dividends that are declared and paid
during the period beginning on the grant date and ending on the settlement date with respect to the
common share of the Company represented by the related deferred stock unit.

     The
deferred stock units will generally become 100% vested on
February 4, 2011, including any deferred stock units received in respect of dividend
equivalents on or prior to the vesting date. Any deferred stock units received in respect of
dividend equivalents following the vesting date will be 100% vested on the date they are credited
to the Nonemployee Director. If, prior to February 4, 2011, a Nonemployee Director ceases to be a
member of the Board after having been convicted of, or pleading
guilty or nolo contendere to, a
felony (for “Cause”), the Nonemployee Director’s deferred stock units will be immediately
forfeited.

     Under
certain circumstances, the deferred stock units will vest prior to
February 4, 2011. These circumstances depend, in part, on
whether a Nonemployee Director had served one full term on the Board
as of February 4, 2008. If a Nonemployee Director who had served less than one full
term on the Board as of February 4, 2008: (a) ceases to be a member of the Board (other than for
Cause) after completing at least one full term of continuous service on the Board, (b) dies or (c)
becomes totally disabled, the deferred stock units granted during the Nonemployee Director’s first
term will become 100% vested as of the date of such event. If a
Nonemployee Director who had served at least one full term on the Board as of February 4, 2008:
(a) ceases to be a member of the Board (other than for Cause) after completing at least two full
terms of continuous service on the Board and attaining age 50, (b) dies or (c) becomes totally
disabled, all of the Nonemployee Director’s deferred stock units will become 100% vested as of the
date of such event. If a Nonemployee Director ceases to be a member of the Board prior to February 4, 2011 for any reason not described in the preceding two sentences, the Nonemployee
Director’s deferred stock units will be immediately forfeited.

     Subject to the terms of the 2006 Plan, vested deferred stock units will be settled in a lump
sum as soon as administratively practicable, but no later than 90 days, following the earliest to
occur of: (i) a Nonemployee Director’s ceasing to be a member of the Board; (ii) a Nonemployee
Director’s death; (iii) the date a Nonemployee Director
becomes totally disabled; or (iv) February 4, 2013. Whole deferred stock units will be settled in full common shares of
the Company and any fractional deferred stock units will be settled in cash, determined based on
the fair market value of a common share of the Company on the settlement date.

     If there is a Change in Control (as defined in the 2006 Plan), each Nonemployee Director’s
deferred stock units will become 100% vested on the date of the Change in Control and settled as
described in the 2006 Plan.

     For more information about the deferred stock units (and related dividend equivalents)
granted to the Nonemployee Directors, please refer to (a) the form of Deferred Stock Unit Award
Agreement for Nonemployee Directors (with Related Dividend Equivalents) which is included as
Exhibit 10(m) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended
December 29, 2007; and (b) the 2006 Plan which is included as Exhibit 10(r)(2) to the Company’s
Annual Report on Form 10-K for the fiscal year ended September 30, 2007.

2EX-10(S)

 

Exhibit 10(s)

First Amendment to Master Accounts Receivable 

Purchase Agreement and Waiver

     This First Amendment to Master Accounts Receivable Purchase Agreement and Waiver (herein, the
“Amendment”) is entered into as of October 22, 2007, among LaSalle Bank National Association (the
“Bank”), The Scotts Company LLC (the “Company”) and The Scotts Miracle-Gro Company (the “Parent”).

Preliminary Statements

     A. Reference is hereby made to that certain Master Accounts Receivable Purchase Agreement
dated as of April 11, 2007 (as amended, the “Purchase Agreement”), among the Company, the Parent
and the Bank.

     B. The Company has requested that the Bank (i) waive compliance with certain provisions of the
Purchase Agreement, and (ii) amend certain provisions of the Purchase Agreement, and the Bank is
willing to do so under the terms and conditions set forth in this Amendment.

     C. Capitalized terms used but not otherwise defined herein shall have the same meaning herein
as in the Purchase Agreement.

     Now, Therefore, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

Section 1. Waiver.

     The Company has notified the Bank that a Termination Event has occurred under Section 18.1(i)
of the Purchase Agreement as a result of the Downgrade of the rating of Home Depot Inc. by S&P on
July 5, 2007, from A+ to BBB+ (the “Existing Termination Event”).

     Subject to the conditions precedent set forth in Section 3 below, the Bank hereby waives the
Existing Termination Event. The Company and the Parent hereby acknowledge and agree that the
occurrence of a Downgrade as set forth in Section 18.1(i) of the Purchase Agreement after the date
hereof shall constitute a Termination Event under the Purchase Agreement. Accordingly, at all
times following the date hereof, the Company and the Parent shall be in full compliance with all
terms, conditions and provisions of the Purchase Agreement.

     Except as specifically waived hereby, all of the terms and conditions of the Purchase
Agreement currently in effect shall stand and remain in full force and effect.

Section 2. Amendments to Purchase Agreement.

     Subject to the satisfaction of the conditions precedent set forth in Section 3 below, the
Purchase Agreement shall be and hereby is amended as follows:

 

 

     2.1. Section 1 of the Purchase Agreement is hereby amended by deleting from the
definition of “Margin” contained therein the reference to “0.60%” and replacing it with
“0.75%”.

Section 3. Conditions Precedent.

     The effectiveness of this Amendment is subject to the satisfaction of all of the following
conditions precedent:

     3.1. The Company, the Parent and the Bank shall have executed and delivered this
Amendment.

     3.2. The Bank shall have received copies (executed or certified, as may be appropriate)
of all legal documents or proceedings taken in connection with the execution and delivery of
this Amendment and the other documents referred to above to the extent the Bank or its
counsel may reasonably request.

     If this Amendment becomes effective, the change in the definition of Margin shall take effect
on October 22, 2007, for all purposes of the Purchase Agreement.

Section 4. Representations.

     In order to induce the Bank to execute and deliver this Amendment, the Company hereby
represents to the Bank that as of the date hereof, the representations and warranties set forth in
the Purchase Agreement are and shall be and remain true and correct and the Company is in
compliance with the terms and conditions of the Purchase Agreement and no Termination Event or
event which, with notice or lapse of time or both, would constitute a Termination Event thereunder
exists or shall result after giving effect to this Amendment.

Section 5. Miscellaneous.

     5.1. Except as specifically amended herein, the Purchase Agreement shall continue in full
force and effect in accordance with its original terms. Reference to this specific Amendment need
not be made in the Purchase Agreement or any other instrument or document executed in connection
therewith, or in any certificate, letter or communication issued or made pursuant to or with
respect to any of the foregoing, any reference in any of such items to the Purchase Agreement being
sufficient to refer to the Purchase Agreement as amended hereby.

     5.2. The Company agrees to pay on demand all costs and expenses of or incurred by the Bank in
connection with the negotiation, preparation, execution and delivery of this Amendment and the
other instruments and documents to be executed and delivered in connection herewith, including the
reasonable fees and expenses of counsel for the Bank.

     5.3. This Amendment may be executed in any number of counterparts, and by the different
parties on different counterpart signature pages, all of which taken together shall

-2-

 

constitute one and the same agreement. Any of the parties hereto may execute this Amendment by
signing any such counterpart and each of such counterparts shall for all purposes be deemed to be
an original. This Amendment shall be governed by the internal laws of the State of New York.

[Signature Page to Follow]

-3-

 

     This First Amendment to Purchase Agreement and Waiver is entered into as of the date and year
first above written.

	 	 	 	 	 	 	 	 	 
	 	 	The Scotts Company LLC	 	 
	 
	 
	 	By	 	 	 	 	 	 
	 

	 	
	 	Name

Title
	 	/s/ Scott M. Haefke
 

VP, Treasurer
 

	 	  
	 
	 	 	 	 	 	 	 	 
	 	 	The Scotts Miracle-Gro Company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 

	 	 	 	Name

Title
	 	/s/ David C. Evans
 

CFO
 

	 	 
	 

	 	 	 	 	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	Accepted and agreed to.
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	LaSalle Bank National Association	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 

	 	 	 	Name	 	/s/ Ted Lape
	 	 	 	 	 	 	 
	 

	 	 	 	Title	 	Senior Vice President

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