Document:

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                                                                   EXHIBIT 10.12

                                KIRKLAND'S, INC.
                        2002 EMPLOYEE STOCK PURCHASE PLAN
               (AS AMENDED AND RESTATED, EFFECTIVE JULY 10, 2002)

         1.       Purpose and Effective Date.

                  (a)      Purpose. The purpose of the Plan is to provide
Eligible Employees with an opportunity to increase their interest in the success
of the Company by purchasing Stock from the Company on favorable terms. The Plan
is intended to satisfy the requirements of Section 423 of the Code and will be
interpreted accordingly.

                  (b)      Effective Date. The Plan is effective as of the first
date that Stock is sold to the public pursuant to an effective registration
statement filed by the Company with the Securities and Exchange Commission.

         2.       Administration.

                  (a)      Committee Composition. The Plan will be administered
by the Committee. The Committee will consist exclusively of one or more
directors of the Company, who will be appointed by the Board.

                  (b)      Committee Responsibilities. The Committee will
interpret the Plan and make all other policy decisions relating to the operation
of the Plan. The Committee may adopt such rules, guidelines and forms as it
deems appropriate to implement the Plan. The Committee's determinations under
the Plan will be final and binding on all persons.

         3.       Enrollment And Participation.

                  (a)      Offering Periods. While the Plan is in effect, two
overlapping Offering Periods will commence in each calendar year. The Offering
Periods will consist of the 24-month periods commencing on each February 1st and
August 1st. Notwithstanding the foregoing, the first Offering Period will
commence on the date of the IPO and end on July 31, 2004 and the second Offering
Period will commence on February 1, 2003 and end on January 31, 2005.

                  (b)      Accumulation Periods. While the Plan is in effect,
two Accumulation Periods will commence in each calendar year. The Accumulation
Periods will consist of the six-month periods commencing on each February 1st
and August 1st. Notwithstanding the foregoing, the first Accumulation Period
will commence on the date of the IPO and end on January 31, 2003 and the second
Accumulation Period will commence on February 1, 2003 and end on July 31, 2003.

                  (c)      Enrollment.

                           (i)      First Offering Period. Each individual who
         qualifies as an Eligible Employee on the Effective Date will be
         enrolled as a Participant automatically on the Effective Date.

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                           (ii)     Subsequent Offering Periods. With respect to
         any Offering Period beginning after the Effective Date, an individual
         who qualifies as an Eligible Employee on the day preceding the first
         day of that Offering Period may elect to become a Participant in the
         Plan for such Offering Period by executing the enrollment/election form
         prescribed for this purpose by the Committee. The enrollment/election
         form must be filed with the Company at the prescribed location at least
         15 days prior to the commencement of such Offering Period.

                  (d)      Duration of Participation. Once enrolled in the Plan,
a Participant will continue to participate in the Plan until he or she withdraws
(or is deemed to have withdrawn) from the Plan under Section 5(a). An individual
who has ceased participation in the Plan may again become a Participant, if he
or she then is an Eligible Employee, by following the procedure described in
Subsection (c) above.

                  (e)      Applicable Offering Period. For purposes of
calculating the Purchase Price under Section 7(b), the applicable Offering
Period will be determined as follows:

                           (i)      Once a Participant is enrolled in the Plan
         for an Offering Period, such Offering Period will continue to apply to
         him or her until the earliest of (A) the end of such Offering Period,
         (B) the end of his or her participation under Subsection (d) above or
         (C) re-enrollment in a subsequent Offering Period under Paragraph (ii)
         below.

                           (ii)     If the Fair Market Value of Stock on the
         last trading day before the commencement of the Offering Period in
         which the Participant is enrolled is higher than on the last trading
         day before the commencement of any subsequent Offering Period, the
         Participant will automatically be re-enrolled for such subsequent
         Offering Period.

                           (iii)    When a Participant reaches the end of an
         Offering Period but his or her participation is to continue, then such
         Participant will automatically be re-enrolled for the Offering Period
         that commences immediately after the end of the prior Offering Period.

         4.       Employee Contributions.

                  (a)      First Accumulation Period. With respect to the First
Accumulation Period, Participants will be permitted to pay for shares of Stock
through direct cash payments, through payroll deduction or through a combination
of direct payment and payroll withholding.

                           (i)      Rate of Contribution. The rate of
         contribution for all Participants in the First Accumulation Period will
         be one percent of Compensation; provided, however, a Participants may
         increase his or her contributions for the First Accumulation Period to
         any amount up to 15% of his or her Compensation for that entire
         Accumulation Period by filing a new election form with the Company that
         authorizes an appropriate amount of payroll withholding.

                           (ii)     Failure to Pay Accumulated Amount. The
         failure by a Participant to make a direct cash payment or authorize
         payroll withholding of the entire Accumulated Amount prior to January
         24, 2003 will be treated automatically as a

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         withdrawal from the Plan under Section 5(a). Upon such withdrawal, no
         payment will be due to the Participant and any right of the Participant
         to apply the Accumulated Amount to the purchase of shares of Stock
         under the Plan will be forfeited.

                  (b)      Subsequent Accumulation Periods. With respect to all
Accumulation Periods beginning on or after February 1, 2003:

                           (i)      Payroll Withholding Required. Participants
         may purchase shares of Stock under the Plan only by means of payroll
         deductions. Participants enrolled in the Plan on the Effective Date are
         required to authorize payroll deductions for Accumulation Periods
         beginning on and after February 1, 2003 in order to continue
         participation in the Plan (and failure to do so will be deemed a
         withdrawal from the Plan under Section 5(a)).

                           (ii)     Rate of Payroll Deductions. An Eligible
         Employee will designate on the enrollment/election form the portion of
         his or her Compensation that he or she elects to have withheld for the
         purchase of Stock. Such portion may be any whole percentage of the
         Eligible Employee's Compensation not less than 1% and not more than
         15%.

                  (c)      Mechanics of Payroll Deductions. Once a Participant
has authorized payroll withholding, payroll deductions will occur on each payday
during participation in the Plan. A Participant may change the rate of payroll
withholding by filing a new enrollment/election form with the Company at the
prescribed location at any time. The new withholding rate will be effective as
soon as reasonably practicable after such form has been received by the Company.
The Committee may limit the number of times a Participant changes the rate of
his or her withholding during any Accumulation Period.

                  (d)      Discontinuing Payroll Deductions. A Participant who
has authorized payroll withholding may discontinue contributions entirely by
filing a new enrollment/election form with the Company at the prescribed
location at any time. Payroll withholding will cease as soon as reasonably
practicable after such form has been received by the Company. (In addition,
employee contributions may be discontinued automatically pursuant to Section
8(b).) A Participant who has discontinued employee contributions in a given
Accumulation Period may resume contributions with respect to the same Offering
Period by filing a new enrollment/election form with the Company at least 15
days prior to the end of that Accumulation Period. Payroll withholding will
resume as soon as reasonably practicable after such form has been received by
the Company. A Participant who has discontinued employee contributions in a
given Accumulation Period and who has not resumed contributions prior to the end
of that Accumulation Period will be deemed to have withdrawn from the Plan under
Section 5(a) immediately following the end of that Accumulation Period.

         5.       Withdrawals and Re-enrollment.

                  (a)      Withdrawals. A Participant may elect to withdraw from
the Plan by filing the prescribed form with the Company at the prescribed
location at any time before the last day of an Accumulation Period. As soon as
reasonably practicable thereafter, payroll deductions will

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cease and the entire amount credited to the Participant's Plan Account will be
refunded to him or her in cash, without interest. No partial withdrawals will be
permitted.

                  (b)      Re-enrollment. A former Participant who has withdrawn
from the Plan will not be a Participant until he or she re-enrolls in the Plan
under Section 3(c). Re-enrollment may be effective only at the commencement of
an Offering Period.

         6.       Change in Employment Status.

                  (a)      Termination of Employment. Termination of employment
as an Eligible Employee for any reason, including death, will be treated as an
automatic withdrawal from the Plan under Section 5(a). (A transfer from one
Participating Company to another will not be treated as a termination of
employment.)

                  (b)      Leave of Absence. For purposes of the Plan,
employment will not be deemed to terminate when the Participant goes on a
military leave, a sick leave or another bona fide leave of absence, if the leave
was approved by the Company in writing. Employment, however, will be deemed to
terminate 90 days after the Participant goes on a leave, unless a contract or
statute guarantees his or her right to return to work. Employment will be deemed
to terminate in any event when the approved leave ends, unless the Participant
immediately returns to work.

                  (c)      Death. In the event of the Participant's death, the
amount credited to his or her Plan Account will be paid to a beneficiary
designated by him or her for this purpose on the prescribed form or, if none, to
the Participant's estate. Such form will be valid only if it was filed with the
Company at the prescribed location before the Participant's death.

         7.       Plan Accounts and Purchase of Shares.

                  (a)      Plan Accounts. The Company will maintain a Plan
Account on its books in the name of each Participant. Whenever an amount is paid
by a Participant or withheld from his or her Compensation under the Plan, such
amount will be credited to the Participant's Plan Account. Amounts credited to
Plan Accounts will not be trust funds and may be commingled with the Company's
general assets and applied to general corporate purposes. No interest will be
credited to Plan Accounts.

                  (b)      Purchase Price. The Purchase Price for each share of
Stock purchased at the close of an Accumulation Period will be 85% of the lower
of:

                           (i)      the Fair Market Value on the last day of
         such Accumulation Period; or

                           (ii)     the Fair Market Value on the first day of
         the applicable Offering Period (as determined under Section 3(e)).

                  (c)      Number of Shares Purchased. As of the last day of
each Accumulation Period, each Participant will be deemed to have elected to
purchase the number of shares of Stock calculated in accordance with this
Subsection (c), unless the Participant has previously

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withdrawn from the Plan in accordance with Section 5(a). The amount then in the
Participant's Plan Account will be divided by the Purchase Price, and the number
of shares that results will be purchased from the Company with the funds in the
Participant's Plan Account. The foregoing notwithstanding, no Participant will
purchase more than 25,000 shares of Stock with respect to any Accumulation
Period nor more than the amounts of Stock set forth in Sections 8(b).

                  (d)      Available Shares Insufficient. If the aggregate
number of shares that all Participants elect to purchase during an Accumulation
Period exceeds the maximum number of shares remaining available for issuance
under Section 13(a), then the number of shares to which each Participant is
entitled will be determined by multiplying the number of shares available for
issuance by a fraction, the numerator of which is the number of shares that such
Participant has elected to purchase and the denominator of which is the number
of shares that all Participants have elected to purchase.

                  (e)      Issuance of Stock. Certificates representing the
shares of Stock purchased by a Participant under the Plan will be issued to him
or her as soon as reasonably practicable after the close of the applicable
Accumulation Period, except that the Committee may determine that such shares
will be held for each Participant's benefit by a broker designated by the
Committee (unless the Participant has elected that certificates be issued to him
or her). Shares may be registered in the name of the Participant or jointly in
the name of the Participant and his or her spouse as joint tenants with right of
survivorship or as community property.

                  (f)      Unused Cash Balances. An amount remaining in the
Participant's Plan Account that represents the Purchase Price for any fractional
share will be carried over in the Participant's Plan Account to the next
Accumulation Period. Any amount remaining in the Participant's Plan Account that
represents the Purchase Price for whole shares that could not be purchased by
reason of Subsection (c) above, Section 8(b) or the aggregate share limit of
Section 13(a) will be refunded to the Participant in cash, without interest.

         8.       Limitations on Stock Ownership.

                  (a)      Five Percent Limit. Any other provision of the Plan
notwithstanding, no Participant will be granted a right to purchase Stock under
the Plan if such Participant, immediately after his or her election to purchase
such Stock, would own stock possessing more than 5% of the total combined voting
power or value of all classes of stock of the Company or any parent or
Subsidiary of the Company. For purposes of this Subsection (a), the following
rules will apply:

                           (i)      Ownership of stock will be determined after
applying the attribution rules of Section 424(d) of the Code; and

                           (ii)     Each Participant will be deemed to own any
stock that he or she has a right or option to purchase under this or any other
plan or arrangement.

                  (b)      Dollar Limit. Any other provision of the Plan
notwithstanding, no Participant will purchase Stock with a Fair Market Value in
excess of the following limit:

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                           (i)      In the case of Stock purchased during an
         Offering Period that commenced in the current calendar year, the limit
         will be equal to (A) $25,000 minus (B) the Fair Market Value of the
         Stock that the Participant previously purchased in the current calendar
         year (under this Plan and all other employee stock purchase plans of
         the Company or any parent or Subsidiary of the Company).

                           (ii)     In the case of Stock purchased during an
         Offering Period that commenced in the immediately preceding calendar
         year, the limit will be equal to (A) $50,000 minus (B) the Fair Market
         Value of the Stock that the Participant previously purchased (under
         this Plan and all other employee stock purchase plans of the Company or
         any parent or Subsidiary of the Company) in the current calendar year
         and in the immediately preceding calendar year.

                           (iii)    In the case of Stock purchased during an
         Offering Period that commenced in the second preceding calendar year,
         the limit will be equal to (A) $75,000 minus (B) the Fair Market Value
         of the Stock that the Participant previously purchased (under this Plan
         and all other employee stock purchase plans of the Company or any
         parent or Subsidiary of the Company) in the current calendar year and
         in the two preceding calendar years.

A Participant whose employee contributions are discontinued automatically as a
result of the limited stated in this Section 8(b) will automatically resume
contributions to the Plan (if possible, with respect to the same Offering
Period) at the beginning of the earliest Accumulation Period ending in the next
calendar year, if he or she then is an Eligible Employee.

         9.       Rights Not Transferable. The rights of any Participant under
the Plan, or any Participant's interest in any Stock or moneys to which he or
she may be entitled under the Plan, will not be transferable by voluntary or
involuntary assignment or by operation of law, or in any other manner other than
by beneficiary designation or the laws of descent and distribution. If a
Participant in any manner attempts to transfer, assign or otherwise encumber his
or her rights or interest under the Plan, other than by beneficiary designation
or the laws of descent and distribution, then such act will be treated as an
election by the Participant to withdraw from the Plan under Section 5(a).

         10.      No Rights as an Employee. Nothing in the Plan or in any right
granted under the Plan will confer upon the Participant any right to continue in
the employ of a Participating Company for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Participating
Companies or of the Participant, which rights are hereby expressly reserved by
each, to terminate his or her employment at any time and for any reason, with or
without cause.

         11.      No Rights as a Stockholder. A Participant will have no rights
as a stockholder with respect to any shares of Stock that he or she may have a
right to purchase under the Plan until such shares have been purchased on the
last day of the applicable Accumulation Period.

         12.      Securities Law Requirements. Shares of Stock will not be
issued under the Plan unless the issuance and delivery of such shares comply
with (or are exempt from) all applicable

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requirements of law, including (without limitation) the Securities Act of 1933,
as amended, the rules and regulations promulgated thereunder, state securities
laws and regulations, and the regulations of any stock exchange or other
securities market on which the Company's securities may then be traded.

         13.      Stock Offered Under the Plan.

                  (a)      Authorized Shares. The aggregate number of shares of
Stock available for purchase under the Plan will be 500,000, subject to
adjustment pursuant to this Section 13.

                  (b)      Adjustments. The aggregate number of shares of Stock
offered under the Plan, the share limit described in Section 7(c) and the price
of shares that any Participant has elected to purchase will be adjusted
proportionately by the Committee for any increase or decrease in the number of
outstanding shares of Stock resulting from a subdivision or consolidation of
shares or the payment of a stock dividend, any other increase or decrease in
such shares effected without receipt or payment of consideration by the Company,
the distribution of the shares of a Subsidiary to the Company's stockholders or
a similar event.

                  (c)      Reorganizations. Any other provision of the Plan
notwithstanding, immediately prior to the effective time of a Corporate
Reorganization, the Offering Period and Accumulation Period then in progress
will terminate and shares will be purchased pursuant to Section 7, unless the
Plan is assumed by the surviving corporation or its parent corporation pursuant
to the plan of merger or consolidation. The Plan will in no event be construed
to restrict in any way the Company's right to undertake a dissolution,
liquidation, merger, consolidation or other reorganization.

         14.      Amendment or Discontinuance. The Board will have the right to
amend, suspend or terminate the Plan at any time and without notice. Except as
provided in Section 13, any increase in the aggregate number of shares of Stock
to be issued under the Plan will be subject to approval by a vote of the
stockholders of the Company.

         15.      Definitions. Capitalized terms used herein have the meanings
set forth in this Section 15.

                  (a)      "Accumulated Amount" means one percent of a
Participant's Compensation for the First Accumulation Period, or such greater
amount as authorized by the Participant pursuant to Section 4(a).

                  (b)      "Accumulation Period" means a period during which
contributions may be made toward the purchase of Stock under the Plan, as
determined pursuant to Section 3(b).

                  (c)      "Board" means the Board of Directors of the Company,
as constituted from time to time.

                  (d)      "Code" means the Internal Revenue Code of 1986, as
amended.

                  (e)      "Committee" means a committee of the Board, as
described in Section 2.

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                  (f)      "Company" means Kirkland's, Inc.

                  (g)      "Compensation" means (i) the total compensation paid
in cash to a Participant by a Participating Company, including salaries, wages,
bonuses, incentive compensation, commissions, overtime pay and shift premiums,
plus (ii) any pre-tax contributions made by the Participant under Section 401(k)
or 125 of the Code. "Compensation" will exclude all non-cash items, moving or
relocation allowances, cost-of-living equalization payments, car allowances,
tuition reimbursements, imputed income attributable to cars or life insurance,
severance pay, fringe benefits, contributions or benefits received under
employee benefit plans, income attributable to the exercise of stock options,
and similar items. The Committee will determine whether a particular item is
included in Compensation.

                  (h)      "Corporate Reorganization" means:

                           (i)      The consummation of a merger or
         consolidation of the Company with or into another entity, or any other
         corporate reorganization; or

                           (ii)     The sale, transfer or other disposition of
         all or substantially all of the Company's assets or the complete
         liquidation or dissolution of the Company.

                  (i)      "Effective Date" the first date that Stock is sold to
the public pursuant to an effective registration statement filed by the Company
with the Securities and Exchange Commission.

                  (j)      "Eligible Employee" means any employee of a
Participating Company who meets both of the following requirements:

                           (i)      His or her customary employment is for more
         than five months per calendar year and for more than 20 hours per week;
         and

                           (ii)     He or she has been an employee of a
         Participating Company for at least 12 consecutive months.

                  (k)      "Exchange Act" means the Securities Exchange Act of
1934, as amended.

                  (l)      "Fair Market Value" means, as of any specified date:

                           (i)      the closing price of the Stock as reported
         on the principal nationally recognized stock exchange on which Stock is
         traded, or if no price is are reported on that date, the closing price
         on the last preceding date on which there were reported Stock prices;

                           (ii)     if the Stock is not listed or admitted to
         unlisted trading privileges on a nationally recognized stock exchange,
         the closing price of the Stock on that date as reported by The Nasdaq
         Stock Market, or if no price is reported for that date, the closing
         price of the Stock on the last preceding date for which there were
         reported Stock prices; or

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                           (iii)    if the Stock is not listed or admitted to
         unlisted trading privileges on a nationally recognized stock exchange
         or traded on The Nasdaq Stock Market, the fair market value of one
         share of Stock, as determined by the Board in its discretion, which
         determination will be conclusive and binding on all persons.

                           Notwithstanding the foregoing, the Fair Market Value
         on the first day of the first Offering Period will be equal to the
         price set forth in the final prospectus included in the Form S-1 filed
         with the Securities and Exchange Commission in connection with the IPO.

                  (m)      "First Accumulation Period" means the Accumulation
Period beginning on the Effective Date.

                  (n)      "IPO" means the first offering of Stock to the public
pursuant to an effective registration statement filed by the Company with the
Securities and Exchange Commission.

                  (o)      "Offering Period" means a period with respect to
which the right to purchase Stock may be granted under the Plan, as determined
pursuant to Section 3(a).

                  (p)      "Participant" means an Eligible Employee who elects
to participate in the Plan, as provided in Section 3(c).

                  (q)      "Participating Company" means (i) the Company and
(ii) each present or future Subsidiary designated by the Committee as a
Participating Company.

                  (r)      "Plan" means this Kirkland's, Inc. 2002 Employee
Stock Purchase Plan, as amended from time to time.

                  (s)      "Plan Account" means the account established for each
Participant pursuant to Section 7(a).

                  (t)      "Purchase Price" means the price at which
Participants may purchase Stock under the Plan, as determined pursuant to
Section 7(b).

                  (u)      "Stock" means the Common Stock of the Company.

                  (v)      "Subsidiary" means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company, if
each of the corporations other than the last corporation in the unbroken chain
owns stock possessing 50% or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain.

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                                                                     Exhibit 4.2

                             SUPPLEMENTAL INDENTURE

                  SUPPLEMENTAL INDENTURE (the "Supplemental Indenture") dated as
of February 6, 2002 by and among The Scotts Company, an Ohio corporation (the
"Company"), Scotts Manufacturing Company ("Scotts Manufacturing," as successor
by merger to Scotts Miracle-Gro Products, Inc.), Scotts Temecula Operations, LLC
("Scotts Temecula", as successor by merger to Republic Tool & Manufacturing
Corp.) and the other guarantors named on the signature pages hereto
(collectively with Scotts Manufacturing and Scotts Temecula, the "Guarantors")
and State Street Bank and Trust Company, as trustee (the "Trustee"). Capitalized
terms used but not defined herein shall have the meanings assigned to such terms
in the Indenture (as defined below).

                               W I T N E S S E T H

                  WHEREAS, the Company, the Guarantors (including the
predecessors of Scotts Manufacturing and Scotts Temecula) and the Trustee
previously duly executed, and the Company and the Guarantors (including the
predecessors of Scotts Manufacturing and Scotts Temecula) duly delivered to the
Trustee, an Indenture (the "Indenture") dated as of January 21, 1999 providing
for the issuance of an aggregate principal amount of up to $400,000,000 of
8.625% Senior Subordinated Notes due 2009 (the "Notes");

                  WHEREAS, the Company previously issued $330,000,000 of the
Notes as of January 21, 1999 (the "Initial Notes") and now wishes to issue the
remaining $70,000,000 of the Notes permitted to be issued under the Indenture
(the "Additional Notes");

                  WHEREAS, a supplemental indenture is required to be entered
into in connection with the merger of Guarantors pursuant to Section 11.05;

                  WHEREAS, the Company desires to amend certain provisions to
provide for the issuance of Additional Notes;

                  WHEREAS, the Indenture provides that a Subsidiary required to
execute a Guarantee of the Notes shall execute and deliver a supplemental
indenture to the Trustee in connection therewith;

                  WHEREAS, the Board of Directors of the Company has authorized
the execution of this Supplemental Indenture and its delivery to the Trustee;

                  WHEREAS, the Company has delivered an Officers' Certificate
and an Opinion of Counsel to the Trustee pursuant to Sections 7.02 and 13.04 of
the Indenture; and

                  WHEREAS, all other actions necessary to make this Supplemental
Indenture a legal, valid and binding obligation of the parties hereto in
accordance with its terms and the terms of the Indenture have been performed;

                  NOW, THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt of which is hereby
acknowledged, the Guarantors, the

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                                                                               2

Company and the Trustee mutually covenant and agree for the equal and ratable
benefit of the Holders of the Notes as follows:

         1. AMENDMENTS TO INDENTURE.

         I. Section 1.01 of the Indenture shall be amended as follows:

         (a) by deleting the definition of "Additional Notes" and substituting
in lieu thereof the following:

         "Additional Notes" means up to $70.0 million in aggregate principal
amount of Notes (other than the Initial Notes) issued under this Indenture in
accordance with Sections 2.02 and 4.09 hereof.

         (b) by deleting the definition of "Initial Notes" and substituting in
lieu thereof the following:

         "Initial Notes" means $330.0 million in aggregate principal amount of
Notes issued under this Indenture on January 21, 1999.

         (c) by deleting the definition of "Initial Purchaser" and substituting
in lieu thereof the following:

         "Initial Purchaser" shall have the meaning assigned to such term in the
Offering Memoranda.

         (d) by deleting the definition of "Liquidated Damages" and substituting
in lieu thereof the following:

         "Liquidated Damages" means all amounts owing pursuant to the
Registration Rights Agreement.

         (e) by deleting the definition of "Offering Memorandum" and
substituting in lieu thereof the following:

         "Offering Memoranda" means the Offering Memorandum, dated January 21,
1999, pursuant to which the Initial Notes were offered and sold, and the
Offering Memorandum, dated February 1, 2002, pursuant to which the Additional
Notes were offered and sold.

                  II. Exhibits A-1 and A-2 to the Indenture shall be amended as
         follows:

                  (a) by deleting the first sentence of Section 1 in Exhibit A-1
         and in Exhibit A-2 entitled "Interest" and substituting in lieu thereof
         the following:

                  "The Scotts Company, an Ohio corporation (the "Company"),
         promises to pay interest on the principal amount of this Note at 8.625%
         per annum from February 6, 2002 until maturity and shall pay the
         Liquidated Damages payable pursuant to the Registration Rights
         Agreement."

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                                                                               3

                  (b) by deleting the third sentence of Section 1 in Exhibit A-1
         and in Exhibit A-2 entitled "Interest" and substituting in lieu thereof
         the following:

                  "Interest on the Notes shall accrue from the most recent date
to which interest has been paid or, if no interest has been paid, from the date
of issuance; provided that if there is no existing Default in the payment of
interest, and if this Note is authenticated between a record date referred to on
the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided, further, that
the first Interest Payment Date shall be July 15, 2002."

                  2. ISSUANCE OF ADDITIONAL NOTES AND GUARANTEES. The Company
agrees to issue the Additional Notes and the Guarantors each agree to
unconditionally guarantee all of the Company's obligations under the Notes, in
each case in accordance with the terms and conditions set forth in the
Indenture.

                  3. AGREEMENT TO GUARANTEE BY GUARANTORS.  Each Guarantor
hereby agrees as follows:

                  (a) Along with the other Guarantors, to jointly and severally
                  Guarantee to each Holder of a Note authenticated and delivered
                  by the Trustee and to the Trustee and its successors and
                  assigns irrespective of the validity and unenforceability of
                  the Indenture, the Notes or the obligations of the Company
                  hereunder or thereunder, that:

                           (i)      the principal of and interest on the Notes
                                    will be promptly paid in full when due,
                                    whether at maturity, by acceleration,
                                    redemption or otherwise, and interest on the
                                    overdue principal of and interest on the
                                    Notes, if any, if lawful, and all other
                                    obligations of the Company to the Holders or
                                    the Trustee hereunder or thereunder will be
                                    promptly paid in full or performed, all in
                                    accordance with the terms hereof and
                                    thereof; and

                           (ii)     in case of any extension of time of payment
                                    or renewal of any Notes or any of such other
                                    obligations, that same will be promptly paid
                                    in full when due or performed in accordance
                                    with the terms of the extension or renewal,
                                    whether at stated maturity, by acceleration
                                    or otherwise. Failing payment when due of
                                    any amount so guaranteed or any performance
                                    so guaranteed for whatever reason, the
                                    Guarantors shall be jointly and severally
                                    obligated to pay the same immediately.

                  (b) The obligations hereunder shall be unconditional,
                  irrespective of the validity, regularity or enforceability of
                  the Notes or the Indenture, the absence of any action to
                  enforce the same, any waiver or consent by any Holder of the
                  Notes with respect to any provisions hereof or thereof, the
                  recovery of any judgment against the Company, any action to
                  enforce the same or any other circumstance which might
                  otherwise constitute a legal or equitable discharge or defense
                  of a guarantor.

<PAGE>

                                                                               4

                  (c) The following is hereby waived: diligence, presentment,
                  demand of payment, filing of claims with a court in the event
                  of insolvency or bankruptcy of the Company, any right to
                  require a proceeding first against the Company, protest,
                  notice and all demands whatsoever.

                  (d) The Subsidiary Guarantees shall not be discharged except
                  by complete performance of the obligations contained in the
                  Notes and the Indenture, and each Guarantor accepts all
                  obligations of an Initial Guarantor under the Indenture.

                  (e) If any Holder or the Trustee is required by any court or
                  otherwise to return to the Company, the Guarantors, or any
                  Custodian, Trustee, liquidator or other similar official
                  acting in relation to either the Company or the Guarantors,
                  any amount paid by either to the Trustee or such Holder, the
                  Subsidiary Guarantees, to the extent theretofore discharged,
                  shall be reinstated in full force and effect.

                  (f) Each Guarantor shall not be entitled to any right of
                  subrogation in relation to the Holders in respect of any
                  obligations guaranteed hereby until payment in full of all
                  obligations guaranteed hereby.

                  (g) As between the Guarantors, on the one hand, and the
                  Holders and the Trustee, on the other hand, (x) the maturity
                  of the obligations guaranteed hereby may be accelerated as
                  provided in Article 6 of the Indenture for the purposes of the
                  Guarantees of all of the Company's Obligations under the Notes
                  and the Indenture (the "Subsidiary Guarantees"),
                  notwithstanding any stay, injunction or other prohibition
                  preventing such acceleration in respect of the obligations
                  guaranteed hereby, and (y) in the event of any declaration of
                  acceleration of such obligations as provided in Article 6 of
                  the Indenture, such obligations (whether or not due and
                  payable) shall forthwith become due and payable by the
                  Guarantors for the purpose of the Subsidiary Guarantees.

                  (h) The Guarantors shall have the right to seek contribution
                  from any non-paying Guarantor so long as the exercise of such
                  right does not impair the rights of the Holders under the
                  Guarantee.

                  (i) The obligations hereunder shall be subject to the
                  subordination provisions of the Indenture.

                  4. EXECUTION AND DELIVERY. Each Guarantor agrees that the
Subsidiary Guarantees shall remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Subsidiary Guarantee.

                  5. GUARANTOR MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

                  (a) Each Guarantor may not consolidate with or merge with or
                  into (whether or not such Guarantor is the surviving Person)
                  another corporation, Person or entity whether or not
                  affiliated with such Guarantor unless:

                           (i)      subject to Sections 11.05 of the Indenture,
                                    the Person formed by or surviving any such
                                    consolidation or merger (if other than a
                                    Guarantor or the Company) unconditionally
                                    assumes all the

<PAGE>

                                                                               5

                                    obligations of such Guarantor, pursuant to a
                                    supplemental indenture in form and substance
                                    reasonably satisfactory to the Trustee,
                                    under the Notes, the Indenture and the
                                    Subsidiary Guarantee on the terms set forth
                                    herein or therein; and

                           (ii)     immediately after giving effect to such
                                    transaction, no Default or Event of Default
                                    exists.

                  (b) In case of any such consolidation, merger, sale or
                  conveyance and upon the assumption by the successor
                  corporation, by supplemental indenture, executed and delivered
                  to the Trustee and satisfactory in form to the Trustee, of the
                  Subsidiary Guarantees endorsed upon the Notes and the due and
                  punctual performance of all of the covenants and conditions of
                  the Indenture to be performed by the Guarantor, such successor
                  corporation shall succeed to and be substituted for the
                  Guarantor with the same effect as if it had been named herein
                  as a Guarantor. Such successor corporation thereupon may cause
                  to be signed any or all of the Subsidiary Guarantees to be
                  endorsed upon all of the Notes issuable hereunder which
                  theretofore shall not have been signed by the Company and
                  delivered to the Trustee. All the Subsidiary Guarantees so
                  issued shall in all respects have the same legal rank and
                  benefit under the Indenture as the Subsidiary Guarantees
                  theretofore and thereafter issued in accordance with the terms
                  of the Indenture as though all of such Subsidiary Guarantees
                  had been issued at the date of the execution hereof.

                  (c) Except as set forth in Articles 4 and 5 and Section 11.05
                  of Article 11 of the Indenture, and notwithstanding clauses
                  (a) and (b) above, nothing contained in the Indenture or in
                  any of the Notes shall prevent any consolidation or merger of
                  a Guarantor with or into the Company or another Guarantor, or
                  shall prevent any sale or conveyance of the property of a
                  Guarantor as an entirety or substantially as an entirety to
                  the Company or another Guarantor.

                  6. RELEASES.

                  (a) In the event of a sale or other disposition of all of the
                  assets of any Guarantor, by way of merger, consolidation or
                  otherwise, or a sale or other disposition of all of the
                  capital stock of any Guarantor, then such Guarantor (in the
                  event of a sale or other disposition, by way of merger,
                  consolidation or otherwise, of all of the capital stock of
                  such Guarantor) or the corporation acquiring the property (in
                  the event of a sale or other disposition of all or
                  substantially all of the assets of such Guarantor) will be
                  released and relieved of any obligations under its Subsidiary
                  Guarantee; provided that the Net Proceeds of such sale or
                  other disposition are applied in accordance with the
                  applicable provisions of the Indenture, including without
                  limitation Section 4.10 of the Indenture. Upon delivery by the
                  Company to the Trustee of an Officers' Certificate and an
                  Opinion of Counsel to the effect that such sale or other
                  disposition was made by the Company in accordance with the
                  provisions of the Indenture, including without limitation
                  Section 4.10 of the Indenture, the Trustee shall execute any
                  documents reasonably required in order to evidence the release
                  of any Guarantor from its obligations under its Subsidiary
                  Guarantee.

<PAGE>

                                                                               6

                  (b) Any Guarantor not released from its obligations under its
                  Subsidiary Guarantee shall remain liable for the full amount
                  of principal of and interest on the Notes and for the other
                  obligations of any Guarantor under the Indenture as provided
                  in Article 11 of the Indenture.

                  7. NO RECOURSE AGAINST OTHERS. No past, present or future
director, officer, employee, incorporator, stockholder or agent of each
Guarantor, as such, shall have any liability for any obligations of the Company
or any Guarantor under the Notes, any Subsidiary Guarantees, the Indenture or
this Supplemental Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of the Notes by
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Notes. Such waiver may not be
effective to waive liabilities under the federal securities laws and it is the
view of the Securities and Exchange Commission that such a waiver is against
public policy.

                  8. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF
NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

                  9. COUNTERPARTS  The parties may sign any number of copies
of this Supplemental Indenture. Each signed copy shall be an original, but all
of them together represent the same agreement.

                  10. EFFECT OF HEADINGS. The Section headings herein are for
convenience only and shall not affect the construction hereof.

                  11. THE TRUSTEE. The Trustee accepts the amendment to the
Indenture effected by this Supplemental Indenture. Without limiting the
generality of the foregoing, the Trustee has no responsibility for the
correctness of the recitals of fact herein contained which shall be taken as the
statements of the Guarantors and the Company and makes no representations as to
the validity or sufficiency of this Supplemental Indenture, except as to the due
and valid execution hereof by the Trustee, and shall incur no liability or
responsibility in respect of the validity thereof.

                  12. SUBSIDIARY GUARANTEES. Each of the Guarantors hereby
affirms that its Subsidiary Guarantee remains effective in all respects
regardless of the effect of this Supplement Indenture on the Indenture.

                  13. EFFECT ON INDENTURE. Upon execution of this Supplement
Indenture, the Indenture shall be modified in accordance herewith, but except as
expressly amended hereby, the Indenture is in all respects ratified and
confirmed and all the terms, conditions and provisions thereof shall remain in
full force and effect.

<PAGE>

                                                                               7

                  14. EFFECT ON SUPPLEMENTAL INDENTURE. Upon execution, this
Supplemental Indenture shall form a part of the Indenture and the Supplemental
Indenture and the Indenture shall be read, taken and construed as one and the
same instrument for all purposes, and every holder of Notes heretofore or
hereafter authenticated and delivered under the Indenture shall be bound hereby.
This Supplemental Indenture shall become effective as of the date first above
written.

<PAGE>
                                                                               8

                  IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed and attested, all as of the date
first above written.

                                     THE SCOTTS COMPANY

                                     By: /s/ Patrick J. Norton
                                     -----------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

                                     GUARANTORS:

                                     SCOTTS MANUFACTURING COMPANY,
                                     as successor by merger to
                                     SCOTTS MIRACLE-GRO PRODUCTS INC.

                                     By: /s/ Patrick J. Norton
                                     -----------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

                                     SCOTTS TEMECULA OPERATIONS, LLC, as
                                     successor by merger to REPUBLIC TOOL &
                                     MANUFACTURING CORP.

                                     By: /s/ Patrick J. Norton
                                     -----------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

                                     MIRACLE-GRO LAWN PRODUCTS, INC.

                                     By: /s/ Patrick J. Norton
                                     -----------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

                                     OMS INVESTMENTS, INC.

                                     By: /s/ Patrick J. Norton
                                     -----------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

<PAGE>
                                                                               9

                                     HYPONEX CORPORATION

                                     By: /s/ Patrick J. Norton
                                     ------------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

                                     EARTHGRO, INC.

                                     By: /s/ Patrick J. Norton
                                     ------------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

                                     SCOTTS PRODUCTS, INC.

                                     By: /s/ Patrick J. Norton
                                     ------------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

                                     SCOTTS PROFESSIONAL PRODUCTS CO.

                                     By: /s/ Patrick J. Norton
                                     ------------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

                                     SCOTTS-SIERRA HORTICULTURAL PRODUCTS
                                      COMPANY

                                     By: /s/ Patrick J. Norton
                                     -------------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

                                     SCOTTS-SIERRA CROP PROTECTION COMPANY

                                     By: /s/ Patrick J. Norton
                                     -------------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

<PAGE>

                                                                              10

                                     SCOTTS-SIERRA INVESTMENTS, INC.

                                     By: /s/ Patrick J. Norton
                                     -------------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

                                     SWISS FARMS PRODUCTS, INC.

                                     By: /s/ Patrick J. Norton
                                     -------------------------------------------
                                     Name: Patrick J. Norton
                                     Title: Executive Vice President & CFO

STATE STREET BANK AND TRUST COMPANY,
As Trustee

By:   /s/ Cauna M. Silva
   ----------------------------------
Name: Cauna M. Silva
Title: Vice President

<PAGE>

                               THE SCOTTS COMPANY

                                  $400,000,000

                              SERIES A AND SERIES B
                    8.625% SENIOR SUBORDINATED NOTES DUE 2009

                        --------------------------------

                             SUPPLEMENTAL INDENTURE

                          Dated as of February 6, 2002

                                       to

                                    INDENTURE

                          Dated as of January 21, 1999

                        --------------------------------

                      STATE STREET BANK AND TRUST COMPANY,

                                   as Trustee

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