Document:

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                                                                     EXHIBIT 4.3

                          REGISTRATION RIGHTS AGREEMENT

This REGISTRATION RIGHTS AGREEMENT dated February 6, 2002 (the "Agreement") is
entered into by and among The Scotts Company, an Ohio corporation (the
"Company"), the guarantors listed in Schedule 1 hereto (the "Guarantors"), and
J.P. Morgan Securities Inc., Banc of America Securities LLC First Union
Securities, Inc., ABN AMRO Incorporated, Credit Lyonnais Securities (USA) Inc.
(the "Initial Purchasers").

         The Company, the Guarantors and the Initial Purchasers are parties to
the Purchase Agreement dated February 1, 2002 (the "Purchase Agreement"), which
provides for the sale by the Company to the Initial Purchasers of $70,000,000
aggregate principal amount of the Company's 8.625% Senior Subordinated Notes due
2009 (the "Securities") which will be guaranteed on an unsecured senior
subordinated basis by each of the Guarantors. As an inducement to the Initial
Purchasers to enter into the Purchase Agreement, the Company and the Guarantors
have agreed to provide to the Initial Purchasers and their direct and indirect
transferees the registration rights set forth in this Agreement. The execution
and delivery of this Agreement is a condition to the closing under the Purchase
Agreement.

         In consideration of the foregoing, the parties hereto agree as follows:

         1. DEFINITIONS. As used in this Agreement, the following terms shall
have the following meanings:

         "Business Day" shall mean any day that is not a Saturday, Sunday or
other day on which commercial banks in New York City, Ohio, Connecticut or
Massachusetts are authorized or required by law to remain closed.

         "Closing Date" shall mean the Closing Date as defined in the Purchase
Agreement.

         "Company" shall have the meaning set forth in the preamble and shall
also include the Company's successors.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

         "Exchange Dates" shall have the meaning set forth in Section 2(a)(ii)
hereof.

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         "Exchange Offer" shall mean the exchange offer by the Company and the
Guarantors of Exchange Securities for Registrable Securities pursuant to Section
2(a) hereof.

         "Exchange Offer Registration" shall mean a registration under the
Securities Act effected pursuant to Section 2(a) hereof.

         "Exchange Offer Registration Statement" shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form) and all amendments and supplements to such registration statement, in each
case including the Prospectus contained therein, all exhibits thereto and any
document incorporated by reference therein.

         "Exchange Securities" shall mean senior subordinated notes issued by
the Company and guaranteed by the Guarantors under the Indenture containing
terms identical to the Securities (except that the Exchange Securities will not
be subject to restrictions on transfer or to any increase in annual interest
rate for failure to comply with this Agreement) and to be offered to Holders of
Securities in exchange for Securities pursuant to the Exchange Offer.

         "Guarantors" shall have the meaning set forth in the preamble and shall
also include any Guarantor's successors.

         "Holders" shall mean the Initial Purchasers, for so long as they own
any Registrable Securities, and each of their successors, assigns and direct and
indirect transferees who become owners of Registrable Securities under the
Indenture; provided that for purposes of Sections 4 and 5 of this Agreement, the
term "Holders" shall include Participating Broker-Dealers.

         "Initial Purchasers" shall have the meaning set forth in the preamble.

         "Indenture" shall mean the Indenture relating to the Securities dated
as of January 21, 1999 among the Company, the Guarantors and State Street Bank
and Trust Company, as trustee, and as the same may be amended from time to time
in accordance with the terms thereof.

         "Majority Holders" shall mean the Holders of a majority of the
aggregate principal amount of outstanding Registrable Securities; provided that
whenever the consent or approval of Holders of a specified percentage of
Registrable Securities is required hereunder, Registrable Securities owned
directly or indirectly by the Company or any of its affiliates shall not be
counted in determining whether such consent or approval was given by the Holders
of such required percentage or amount.

         "Participating Broker-Dealers" shall have the meaning set forth in
Section 4(a) hereof.

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         "Person" shall mean an individual, partnership, limited liability
company, corporation, trust or unincorporated organization, or a government or
agency or political subdivision thereof.

         "Purchase Agreement" shall have the meaning set forth in the preamble.

         "Prospectus" shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to such prospectus, and in each case including
any document incorporated by reference therein.

         "Registrable Securities" shall mean the Securities; provided that the
Securities shall cease to be Registrable Securities (i) when a Registration
Statement with respect to such Securities has been declared effective under the
Securities Act and such Securities have been exchanged or disposed of pursuant
to such Registration Statement, (ii) when such Securities are eligible to be
sold pursuant to Rule 144(k) (or any similar provision then in force, but not
Rule 144A) under the Securities Act or (iii) when such Securities cease to be
outstanding.

         "Registration Expenses" shall mean any and all expenses incident to
performance of or compliance by the Company and the Guarantors with this
Agreement, including without limitation: (i) all SEC, stock exchange or National
Association of Securities Dealers, Inc. registration and filing fees, (ii) all
fees and expenses incurred in connection with compliance with state securities
or blue sky laws (including reasonable fees and disbursements of counsel for any
Underwriters or Holders in connection with blue sky qualification of any
Exchange Securities or Registrable Securities), (iii) all expenses of any
Persons in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus and any amendments or
supplements thereto, any underwriting agreements, securities sales agreements or
other similar agreements and any other documents relating to the performance of
and compliance with this Agreement, (iv) all rating agency fees, (v) all fees
and disbursements relating to the qualification of the Indenture under
applicable securities laws, (vi) the fees and disbursements of the Trustee and
its counsel, (vii) the fees and disbursements of counsel for the Company and the
Guarantors and, in the case of a Shelf Registration Statement, the fees and
disbursements of one counsel for the Holders (which counsel shall be selected by
the Majority Holders and which counsel may also be counsel for the Initial
Purchasers) and (viii) the fees and disbursements of the independent public
accountants of the Company and the Guarantors, including the expenses of any
special audits or "comfort" letters required by or incident to the performance
of and compliance with this Agreement, but excluding fees and expenses of
counsel to the

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Underwriters (other than fees and expenses set forth in clause (ii) above) or
the Holders and underwriting discounts and commissions and transfer taxes, if
any, relating to the sale or disposition of Registrable Securities by a Holder.

         "Registration Statement" shall mean any registration statement of the
Company and the Guarantors that covers any of the Exchange Securities or
Registrable Securities pursuant to the provisions of this Agreement and all
amendments and supplements to any such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and any document incorporated by reference
therein.

         "SEC" shall mean the Securities and Exchange Commission.

         "Securities Act" shall mean the Securities Act of 1933, as amended from
time to time.

         "Shelf Registration" shall mean a registration effected pursuant to
Section 2(b) hereof.

         "Shelf Registration Statement" shall mean a "shelf" registration
statement of the Company and the Guarantors that covers all the Registrable
Securities (but no other securities unless approved by the Holders whose
Registrable Securities are to be covered by such Shelf Registration Statement)
on an appropriate form under Rule 415 under the Securities Act, or any similar
rule that may be adopted by the SEC, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and any
document incorporated by reference therein.

         "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended from time to time.

         "Trustee" shall mean the trustee with respect to the Securities under
the Indenture.

         "Underwriter" shall have the meaning set forth in Section 3 hereof.

         "Underwritten Offering" shall mean an offering in which Registrable
Securities are sold to an Underwriter for reoffering to the public.

         2. REGISTRATION UNDER THE SECURITIES ACT. (a) To the extent not
prohibited by any applicable law or applicable interpretations of the Staff of
the SEC, the Company and the Guarantors shall use their reasonable best efforts
to (i) cause to be filed an Exchange Offer Registration Statement covering an
offer to the Holders to exchange all the Registrable Securities for Exchange
Securities and (ii) have such Registration Statement remain effective until the
closing of the

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Exchange Offer. The Company and the Guarantors shall commence the Exchange Offer
promptly after the Exchange Offer Registration Statement is declared effective
by the SEC and use their reasonable best efforts to complete the Exchange Offer
not later than 30 days after such effective date.

         The Company and the Guarantors shall commence the Exchange Offer by
mailing the related Prospectus, appropriate letters of transmittal and other
accompanying documents to each Holder stating, in addition to such other
disclosures as are required by applicable law:

(i)      that the Exchange Offer is being made pursuant to this Agreement and
         that all Registrable Securities validly tendered and not properly
         withdrawn will be accepted for exchange;

(ii)     the dates of acceptance for exchange (which shall be a period of at
         least 20 Business Days from the date such notice is mailed) (the
         "Exchange Dates");

(iii)    that any Registrable Security not tendered will remain outstanding and
         continue to accrue interest but will not retain any rights under this
         Agreement;

(iv)     that any Holder electing to have a Registrable Security exchanged
         pursuant to the Exchange Offer will be required to surrender such
         Registrable Security, together with the appropriate letters of
         transmittal, to the institution and at the address (located in the
         Borough of Manhattan, The City of New York) and in the manner specified
         in the notice, prior to the close of business on the last Exchange
         Date; and

(v)      that any Holder will be entitled to withdraw its election, not later
         than the close of business on the last Exchange Date, by sending to the
         institution and at the address (located in the Borough of Manhattan,
         The City of New York) specified in the notice, a telegram, facsimile
         transmission or letter setting forth the name of such Holder, the
         principal amount of Registrable Securities delivered for exchange and a
         statement that such Holder is withdrawing its election to have such
         Securities exchanged.

         As a condition to participating in the Exchange Offer, a Holder will be
required to represent to the Company and the Guarantors that (i) any Exchange
Securities to be received by it will be acquired in the ordinary course of its
business, (ii) at the time of the commencement of the Exchange Offer it has no
arrangement or understanding with any Person to participate in the distribution
(within the meaning of the Securities Act) of the Exchange Securities in
violation of the provisions of the Securities Act, (iii) it is not an
"affiliate" (within the meaning of Rule 405 under Securities Act) of the Company
or any Guarantor and (iv) if such Holder is a broker-dealer that will receive
Exchange Securities for its

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own account in exchange for Registrable Securities that were acquired as a
result of market-making or other trading activities, then such Holder will
deliver a Prospectus in connection with any resale of such Exchange Securities.

         As soon as practicable after the last Exchange Date, the Company and
the Guarantors shall:

(i)      accept for exchange Registrable Securities or portions thereof validly
         tendered and not properly withdrawn pursuant to the Exchange Offer; and

(ii)     deliver, or cause to be delivered, to the Trustee for cancellation all
         Registrable Securities or portions thereof so accepted for exchange by
         the Company and issue, and cause the Trustee to promptly authenticate
         and deliver to each Holder, Exchange Securities equal in principal
         amount to the principal amount of the Registrable Securities
         surrendered by such Holder.

         The Company and the Guarantors shall use their reasonable best efforts
to complete the Exchange Offer as provided above and shall comply with the
applicable requirements of the Securities Act, the Exchange Act and other
applicable laws and regulations in connection with the Exchange Offer. The
Exchange Offer shall not be subject to any conditions, other than that the
Exchange Offer does not violate any applicable law or applicable interpretations
of the Staff of the SEC.

         (b) In the event that (i) the Company and the Guarantors determine that
the Exchange Offer Registration provided for in Section 2(a) above is not
available or may not be completed as soon as practicable after the last Exchange
Date because it would violate any applicable law or applicable interpretations
of the Staff of the SEC, (ii) the Exchange Offer is not for any other reason
completed by ______________, 2002 [insert date nine months after closing date]
or (iii) the Exchange Offer has been completed and in the opinion of counsel for
the Initial Purchasers a Registration Statement must be filed and a Prospectus
must be delivered by the Initial Purchasers in connection with any offering or
sale of Registrable Securities, the Company and the Guarantors shall use their
reasonable best efforts to cause to be filed as soon as practicable after such
determination, date or notice of such opinion of counsel is given to the
Company, as the case may be, a Shelf Registration Statement providing for the
sale of all the Registrable Securities by the Holders thereof and to have such
Shelf Registration Statement declared effective by the SEC. In the event the
Initial Purchasers hold an unsold allotment of the Securities on the 150th day
after the date of this Agreement, J.P. Morgan Securities Inc. or the relevant
Initial Purchaser shall notify the Company of such unsold allotment.

         In the event that the Company and the Guarantors are required to file a
Shelf Registration Statement solely as a result of the matters referred to in
clause

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(iii) of the preceding sentence, the Company and the Guarantors shall use their
reasonable best efforts to file and have declared effective by the SEC both an
Exchange Offer Registration Statement pursuant to Section 2(a) with respect to
all Registrable Securities and a Shelf Registration Statement (which may be a
combined Registration Statement with the Exchange Offer Registration Statement)
with respect to offers and sales of Registrable Securities held by the Initial
Purchasers after completion of the Exchange Offer.

         The Company and the Guarantors agree to use their reasonable best
efforts to keep the Shelf Registration Statement continuously effective until
the expiration of the period referred to in Rule 144(k) under the Securities Act
with respect to the Registrable Securities or such shorter period that will
terminate when all the Registrable Securities covered by the Shelf Registration
Statement have been sold pursuant to the Shelf Registration Statement. The
Company and the Guarantors further agree to supplement or amend the Shelf
Registration Statement and the related Prospectus if required by the rules,
regulations or instructions applicable to the registration form used by the
Company for such Shelf Registration Statement or by the Securities Act or by any
other rules and regulations thereunder for shelf registration or if reasonably
requested by a Holder of Registrable Securities with respect to information
relating to such Holder, and to use their reasonable best efforts to cause any
such amendment to become effective and such Shelf Registration Statement and
Prospectus to become usable as soon as thereafter practicable. The Company and
the Guarantors agree to furnish to the Holders of Registrable Securities copies
of any such supplement or amendment promptly after its being used or filed with
the SEC.

         (c) The Company and the Guarantors shall pay all Registration Expenses
in connection with the registration pursuant to Section 2(a) and Section 2(b)
hereof. Each Holder shall pay all underwriting discounts and commissions and
transfer taxes, if any, relating to the sale or disposition of such Holder's
Registrable Securities pursuant to the Shelf Registration Statement.

         (d) An Exchange Offer Registration Statement pursuant to Section 2(a)
hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof will
not be deemed to have become effective unless it has been declared effective by
the SEC; PROVIDED that if, after it has been declared effective, the offering of
Registrable Securities pursuant to a Shelf Registration Statement is interfered
with by any stop order, injunction or other order or requirement of the SEC or
any court or other governmental or regulatory agency or body, such Registration
Statement will be deemed not to have become effective during the period of such
interference until the offering of Registrable Securities pursuant to such
Registration Statement may legally resume.

         In the event that either the Exchange Offer is not completed or the
Shelf Registration Statement, if required hereby, is not declared effective on
or prior to

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November 6, 2002 (the "Target Registration Date"), the interest rate on the
Registrable Securities will be increased by (i) 0.50% per annum for the first
90-day period immediately following the Target Registration Date and (ii) an
additional 0.50% per annum with respect to each subsequent 90-day period, in
each case until the Exchange Offer is completed or the Shelf Registration
Statement, if required hereby, is declared effective by the SEC or the
Securities become freely tradable under the Securities Act, up to a maximum of
1.50% per annum of additional interest. In the event (x) a Shelf Registration
Statement is required to be filed due to an unsold allotment held by an Initial
Purchaser and (y) J.P. Morgan Securities Inc. or the relevant Initial Purchaser
fails to give the notice described in the final sentence of the first paragraph
of Section 2(b), then the additional interest described in this Section 2(d)
shall not commence to accrue until 120 days after the delivery of such notice to
the Company.

         (e) Without limiting the remedies available to the Initial Purchasers
and the Holders, the Company and the Guarantors acknowledge that any failure by
the Company or the Guarantors to comply with their obligations under Section
2(a) and Section 2(b) hereof may result in material irreparable injury to the
Initial Purchasers or the Holders for which there is no adequate remedy at law,
that it will not be possible to measure damages for such injuries precisely and
that, in the event of any such failure, the Initial Purchasers or any Holder may
obtain such relief as may be required to specifically enforce the Company's and
the Guarantors' obligations under Section 2(a) and Section 2(b) hereof.

         3. REGISTRATION PROCEDURES. In connection with their obligations
pursuant to Section 2(a) and Section 2(b) hereof, the Company and the Guarantors
shall as expeditiously as possible:

         (a) prepare and file with the SEC a Registration Statement on the
appropriate form under the Securities Act, which form (x) shall be selected by
the Company and the Guarantors, (y) shall, in the case of a Shelf Registration,
be available for the sale of the Registrable Securities by the selling Holders
thereof and (z) shall comply as to form in all material respects with the
requirements of the applicable form and include all financial statements
required by the SEC to be filed therewith; and use their reasonable best efforts
to cause such Registration Statement to become effective and remain effective
for the applicable period in accordance with Section 2 hereof;

         (b) prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary to keep such
Registration Statement effective for the applicable period in accordance with
Section 2 hereof and cause each Prospectus to be supplemented by any required
prospectus supplement and, as so supplemented, to be filed pursuant to Rule 424
under the Securities Act; and keep each Prospectus current during the period
described in Section 4(3) of and Rule 174 under the Securities Act that is

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applicable to transactions by brokers or dealers with respect to the Registrable
Securities or Exchange Securities;

         (c) in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities, to counsel for the Initial Purchasers, to counsel for
such Holders and to each Underwriter of an Underwritten Offering of Registrable
Securities, if any, without charge, as many copies of each Prospectus, including
each preliminary Prospectus, and any amendment or supplement thereto, as such
person shall reasonably request in order to facilitate the sale or other
disposition of the Registrable Securities thereunder; and the Company and the
Guarantors consent to the use of such Prospectus and any amendment or supplement
thereto in accordance with applicable law by each of the selling Holders of
Registrable Securities and any such Underwriters in connection with the offering
and sale of the Registrable Securities covered by and in the manner described in
such Prospectus or any amendment or supplement thereto in accordance with
applicable law;

         (d) use their reasonable best efforts to register or qualify the
Registrable Securities under all applicable state securities or blue sky laws of
such jurisdictions as any Holder of Registrable Securities covered by a
Registration Statement shall reasonably request in writing by the time the
applicable Registration Statement is declared effective by the SEC; cooperate
with the Holders in connection with any filings required to be made with the
National Association of Securities Dealers, Inc.; and do any and all other acts
and things that may be reasonably necessary or advisable to enable each Holder
to complete the disposition in each such jurisdiction of the Registrable
Securities owned by such Holder; PROVIDED that neither the Company nor any
Guarantor shall be required to (i) qualify as a foreign corporation or other
entity or as a dealer in securities in any such jurisdiction where it would not
otherwise be required to so qualify, (ii) file any general consent to service of
process in any such jurisdiction or (iii) subject itself to taxation in any such
jurisdiction if it is not so subject;

         (e) in the case of a Shelf Registration, notify each Holder of
Registrable Securities, counsel for such Holders and counsel for the Initial
Purchasers promptly and, if requested by any such Holder or counsel, confirm
such advice in writing (i) when a Registration Statement has become effective
and when any post-effective amendment thereto has been filed and becomes
effective, (ii) of any request by the SEC or any state securities authority for
amendments and supplements to a Registration Statement and Prospectus or for
additional information after the Registration Statement has become effective,
(iii) of the issuance by the SEC or any state securities authority of any stop
order suspending the effectiveness of a Registration Statement or the initiation
of any proceedings for that purpose, (iv) if, between the effective date of a
Registration Statement and the closing of any sale of Registrable Securities
covered thereby, the representations and warranties of the Company or any
Guarantor contained

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in any underwriting agreement, securities sales agreement or other similar
agreement, if any, relating to an offering of such Registrable Securities cease
to be true and correct in all material respects or if the Company or any
Guarantor receives any notification with respect to the suspension of the
qualification of the Registrable Securities for sale in any jurisdiction or the
initiation of any proceeding for such purpose, (v) of the happening of any event
during the period a Shelf Registration Statement is effective that makes any
statement made in such Registration Statement or the related Prospectus untrue
in any material respect or that requires the making of any changes in such
Registration Statement or Prospectus in order to make the statements therein, in
light of the circumstances under which they were made, not misleading and (vi)
of any determination by the Company or any Guarantor that a post-effective
amendment to a Registration Statement would be appropriate;

         (f) use their reasonable best efforts to obtain the withdrawal of any
order suspending the effectiveness of a Registration Statement at the earliest
possible moment and provide immediate notice to each Holder of the withdrawal of
any such order;

         (g) in the case of a Shelf Registration, furnish to each Holder of
Registrable Securities, without charge, at least one conformed copy of each
Registration Statement and any post-effective amendment thereto (without any
documents incorporated therein by reference or exhibits thereto, unless
requested);

         (h) in the case of a Shelf Registration, cooperate with the selling
Holders of Registrable Securities to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be sold and not
bearing any restrictive legends and enable such Registrable Securities to be
issued in such denominations and registered in such names (consistent with the
provisions of the Indenture) as the selling Holders may reasonably request at
least one Business Day prior to the closing of any sale of Registrable
Securities;

         (i) in the case of a Shelf Registration, upon the occurrence of any
event contemplated by Section 3(e)(v) hereof, use their reasonable best efforts
to prepare and file with the SEC a supplement or post-effective amendment to a
Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to purchasers of the Registrable Securities, such Prospectus will not
contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; and the Company and the Guarantors
shall notify the Holders of Registrable Securities to suspend use of the
Prospectus as promptly as practicable after the occurrence of such an event, and
such Holders hereby agree to suspend use of the Prospectus until the Company

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and the Guarantors have amended or supplemented the Prospectus to correct such
misstatement or omission;

         (j) a reasonable time prior to the filing of any Registration
Statement, any Prospectus, any amendment to a Registration Statement or
amendment or supplement to a Prospectus or of any document that is to be
incorporated by reference into a Registration Statement or a Prospectus after
initial filing of a Registration Statement, provide copies of such document to
the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, to the Holders of Registrable Securities and their
counsel) and make such of the representatives of the Company and the Guarantors
as shall be reasonably requested by the Initial Purchasers or their counsel
(and, in the case of a Shelf Registration Statement, the Holders of Registrable
Securities or their counsel) available for discussion of such document; and the
Company and the Guarantors shall not, at any time after initial filing of a
Registration Statement, file any Prospectus, any amendment of or supplement to a
Registration Statement or a Prospectus, or any document that is to be
incorporated by reference into a Registration Statement or a Prospectus, of
which the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, the Holders of Registrable Securities and their counsel)
shall not have previously been advised and furnished a copy or to which the
Initial Purchasers or their counsel (and, in the case of a Shelf Registration
Statement, the Holders or their counsel) shall reasonably object;

         (k) obtain a CUSIP number for all Exchange Securities or Registrable
Securities, as the case may be, not later than the effective date of a
Registration Statement;

         (l) cause the Indenture to be qualified under the Trust Indenture Act
in connection with the registration of the Exchange Securities or Registrable
Securities, as the case may be; cooperate with the Trustee and the Holders to
effect such changes to the Indenture as may be required for the Indenture to be
so qualified in accordance with the terms of the Trust Indenture Act; and
execute, and use their reasonable best efforts to cause the Trustee to execute,
all documents as may be required to effect such changes and all other forms and
documents required to be filed with the SEC to enable the Indenture to be so
qualified in a timely manner;

         (m) in the case of a Shelf Registration, make available for inspection
by a representative of the Holders of the Registrable Securities (an
"Inspector"), any Underwriter participating in any disposition pursuant to such
Shelf Registration Statement, and attorneys and accountants designated by the
Holders, at reasonable times and in a reasonable manner, all pertinent financial
and other records, documents and properties of the Company and the Guarantors,
and cause the respective officers, directors and employees of the Company and
the Guarantors to supply all information reasonably requested by any such
Inspector,

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Underwriter, attorney or accountant in connection with a Shelf Registration
Statement; PROVIDED that if any such information is identified by the Company or
any Guarantor as being confidential or proprietary, each Person receiving such
information shall take such actions as are reasonably necessary to protect the
confidentiality of such information to the extent such action is otherwise not
inconsistent with, an impairment of or in derogation of the rights and interests
of any Inspector, Holder or Underwriter);

         (n) if reasonably requested by any Holder of Registrable Securities
covered by a Registration Statement, promptly incorporate in a Prospectus
supplement or post-effective amendment such information with respect to such
Holder as such Holder reasonably requests to be included therein and make all
required filings of such Prospectus supplement or such post-effective amendment
as soon as the Company has received notification of the matters to be
incorporated in such filing; and

         (o) in the case of a Shelf Registration, enter into such customary
agreements and take all such other actions in connection therewith (including
those requested by the Holders of a majority in principal amount of the
Registrable Securities being sold) in order to expedite or facilitate the
disposition of such Registrable Securities including, but not limited to, an
Underwritten Offering and in such connection, (i) to the extent possible, make
such representations and warranties to the Holders and any Underwriters of such
Registrable Securities with respect to the business of the Company and its
subsidiaries, the Registration Statement, Prospectus and documents incorporated
by reference or deemed incorporated by reference, if any, in each case, in form,
substance and scope as are customarily made by issuers to underwriters in
underwritten offerings and confirm the same if and when requested, (ii) obtain
opinions of counsel to the Company and the Guarantors (which counsel and
opinions, in form, scope and substance, shall be reasonably satisfactory to the
Holders and such Underwriters and their respective counsel) addressed to each
selling Holder and Underwriter of Registrable Securities, covering the matters
customarily covered in opinions requested in underwritten offerings, (iii)
obtain "comfort" letters from the independent certified public accountants of
the Company and the Guarantors (and, if necessary, any other certified public
accountant of any subsidiary of the Company or any Guarantor, or of any business
acquired by the Company or any Guarantor for which financial statements and
financial data are or are required to be included in the Registration Statement)
addressed to each selling Holder and Underwriter of Registrable Securities, such
letters to be in customary form and covering matters of the type customarily
covered in "comfort" letters in connection with underwritten offerings and (iv)
deliver such documents and certificates as may be reasonably requested by the
Holders of a majority in principal amount of the Registrable Securities being
sold or the Underwriters, and which are customarily delivered in underwritten
offerings, to evidence the continued validity of the representations and
warranties of the Company and the Guarantors made

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pursuant to clause (i) above and to evidence compliance with any customary
conditions contained in an underwriting agreement.

         In the case of a Shelf Registration Statement, the Company may require
each Holder of Registrable Securities to furnish to the Company such information
regarding such Holder and the proposed disposition by such Holder of such
Registrable Securities as the Company and the Guarantors may from time to time
reasonably request in writing.

         In the case of a Shelf Registration Statement, each Holder of
Registrable Securities agrees that, upon receipt of any notice from the Company
and the Guarantors of the happening of any event of the kind described in
Section 3(e)(iii) or 3(e)(v) hereof, such Holder will forthwith discontinue
disposition of Registrable Securities pursuant to a Registration Statement until
such Holder's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 3(i) hereof and, if so directed by the Company and the
Guarantors, such Holder will deliver to the Company and the Guarantors all
copies in its possession, other than permanent file copies then in such Holder's
possession, of the Prospectus covering such Registrable Securities that is
current at the time of receipt of such notice.

         If the Company and the Guarantors shall give any such notice to suspend
the disposition of Registrable Securities pursuant to a Registration Statement,
the Company and the Guarantors shall extend the period during which the
Registration Statement shall be maintained effective pursuant to this Agreement
by the number of days during the period from and including the date of the
giving of such notice to and including the date when the Holders shall have
received copies of the supplemented or amended Prospectus necessary to resume
such dispositions. The Company and the Guarantors may give any such notice only
twice during any 365-day period and any such suspensions shall not exceed 60
days for each suspension and there shall not be more than two suspensions in
effect during any 365-day period.

         The Holders of Registrable Securities covered by a Shelf Registration
Statement who desire to do so may sell such Registrable Securities in an
Underwritten Offering. In any such Underwritten Offering, the investment banker
or investment bankers and manager or managers (the "Underwriters") that will
administer the offering will be selected by the Majority Holders of the
Registrable Securities included in such offering.

         4. PARTICIPATION OF BROKER-DEALERS IN EXCHANGE OFFER. (a) The Staff of
the SEC has taken the position that any broker-dealer that receives Exchange
Securities for its own account in the Exchange Offer in exchange for Securities
that were acquired by such broker-dealer as a result of market-making or other
trading activities (a "Participating Broker-Dealer") may be deemed to be an
"underwriter" within the meaning of the Securities Act and must deliver a

                                       13
<PAGE>

prospectus meeting the requirements of the Securities Act in connection with any
resale of such Exchange Securities.

         The Company and the Guarantors understand that it is the Staff's
position that if the Prospectus contained in the Exchange Offer Registration
Statement includes a plan of distribution containing a statement to the above
effect and the means by which Participating Broker-Dealers may resell the
Exchange Securities, without naming the Participating Broker-Dealers or
specifying the amount of Exchange Securities owned by them, such Prospectus may
be delivered by Participating Broker-Dealers to satisfy their prospectus
delivery obligation under the Securities Act in connection with resales of
Exchange Securities for their own accounts, so long as the Prospectus otherwise
meets the requirements of the Securities Act.

         (b) In light of the above, and notwithstanding the other provisions of
this Agreement, the Company and the Guarantors agree to amend or supplement the
Prospectus contained in the Exchange Offer Registration Statement, as would
otherwise be contemplated by Section 3(i), for a period of up to 180 days after
the last Exchange Date (as such period may be extended pursuant to the
penultimate paragraph of Section 3 of this Agreement), if requested by the
Initial Purchasers or by one or more Participating Broker-Dealers, in order to
expedite or facilitate the disposition of any Exchange Securities by
Participating Broker-Dealers consistent with the positions of the Staff recited
in Section 4(a) above. The Company and the Guarantors further agree that
Participating Broker-Dealers shall be authorized to deliver such Prospectus
during such period in connection with the resales contemplated by this Section
4.

         (c) The Initial Purchasers shall have no liability to the Company, any
Guarantor or any Holder with respect to any request that they may make pursuant
to Section 4(b) above.

         5. INDEMNIFICATION AND CONTRIBUTION. (a) The Company and each
Guarantor, jointly and severally, agree to indemnify and hold harmless each
Initial Purchaser and each Holder, their respective affiliates and each Person,
if any, who controls any Initial Purchaser or any Holder within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act, from and
against any and all losses, claims, damages and liabilities (including, without
limitation, legal fees and other expenses incurred in connection with any suit,
action or proceeding or any claim asserted), joint or several, caused by any
untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement or any Prospectus, or caused by any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, except insofar as such
losses, claims, damages or liabilities are caused by any untrue statement or

                                       14
<PAGE>

omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to any Initial Purchaser or any Holder
furnished to the Company in writing through J.P. Morgan Securities Inc. or any
selling Holder expressly for use therein. In connection with any Underwritten
Offering permitted by Section 3, the Company and the Guarantors will also
indemnify the Underwriters, if any, selling brokers, dealers and similar
securities industry professionals participating in the distribution, their
respective affiliates and each Person who controls such Persons (within the
meaning of the Securities Act and the Exchange Act) to the same extent as
provided above with respect to the indemnification of the Holders, if requested
in connection with any Registration Statement.

         (b) Each Holder agrees, severally and not jointly, to indemnify and
hold harmless the Company, the Guarantors, the Initial Purchasers and the other
selling Holders, their respective affiliates, the directors of the Company and
the Guarantors, each officer of the Company and the Guarantors who signed the
Registration Statement and each Person, if any, who controls the Company, the
Guarantors, any Initial Purchaser and any other selling Holder within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to
the same extent as the indemnity set forth in paragraph (a) above, but only with
respect to any losses, claims, damages or liabilities caused by any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with any information relating to such Holder furnished to
the Company in writing by such Holder expressly for use in any Registration
Statement and any Prospectus.

         (c) If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against
any Person in respect of which indemnification may be sought pursuant to either
paragraph (a) or (b) above, such Person (the "Indemnified Person") shall
promptly notify the Person against whom such indemnification may be sought (the
"Indemnifying Person") in writing; PROVIDED that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have
under this Section 5 except to the extent that it has been materially prejudiced
(through the forfeiture of substantive rights or defenses) by such failure; and
PROVIDED, FURTHER, that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have to an Indemnified Person
otherwise than under this Section 5. If any such proceeding shall be brought or
asserted against an Indemnified Person and it shall have notified the
Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 5
that the Indemnifying Person may designate in such proceeding and shall pay the
fees and expenses of such counsel related to such proceeding. In any such
proceeding, any Indemnified Person shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person unless (i) the Indemnifying Person and

                                       15
<PAGE>

the Indemnified Person shall have mutually agreed to the contrary; (ii) the
Indemnifying Person has failed within a reasonable time to retain counsel
reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person
shall have reasonably concluded that there may be legal defenses available to it
that are different from or in addition to those available to the Indemnifying
Person; or (iv) the named parties in any such proceeding (including any
impleaded parties) include both the Indemnifying Person and the Indemnified
Person and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is
understood and agreed that the Indemnifying Person shall not, in connection with
any proceeding or related proceeding in the same jurisdiction, be liable for the
fees and expenses of more than one separate firm (in addition to any local
counsel) for all Indemnified Persons, which counsel shall be reasonably
acceptable to the Company, and that all such fees and expenses shall be
reimbursed as they are incurred; provided that the foregoing expense
reimbursement shall not, as to any Holder, apply to the extent it is finally
judicially determined that the Holder was grossly negligent or acted with
willful misconduct and such gross negligence or willful misconduct related to
the written information described in paragraph (b) furnished by such Holder to
the Company for use in the Registration Statement and any Prospectus. Any such
separate firm (x) for any Initial Purchaser, its affiliates and any control
Persons of such Initial Purchaser shall be designated in writing by J.P. Morgan
Securities Inc., (y) for any Holder, its affiliates and any control Persons of
such Holder shall be designated in writing by the Majority Holders and (z) in
all other cases shall be designated in writing by the Company. The Indemnifying
Person shall not be liable for any settlement of any proceeding effected without
its written consent, but if settled with such consent or if there be a final
judgment for the plaintiff, the Indemnifying Person agrees to indemnify each
Indemnified Person from and against any loss or liability by reason of such
settlement or judgment subject to the terms and conditions hereof.
Notwithstanding the foregoing sentence, if at any time an Indemnified Person
shall have requested that an Indemnifying Person reimburse the Indemnified
Person for the reasonable fees and expenses of counsel as contemplated by this
paragraph, the Indemnifying Person shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 30 days after receipt by the Indemnifying Person of such
request and (ii) the Indemnifying Person shall not have reimbursed the
Indemnified Person in accordance with such request prior to the date of such
settlement; provided that the foregoing expense reimbursement shall not, as to
any Holder, apply to the extent it is finally judicially determined that the
Holder was grossly negligent or acted with willful misconduct and such gross
negligence or willful misconduct related to the written information described in
paragraph (b) furnished by such Holder to the Company for use in the
Registration Statement and any Prospectus. No Indemnifying Person shall, without
the written consent of the Indemnified Person, effect any settlement of any
pending or threatened proceeding in respect of which any Indemnified Person is
or could have been a party and indemnification could have been

                                       16
<PAGE>

sought hereunder by such Indemnified Person, unless such settlement (A) includes
an unconditional release of such Indemnified Person in form and substance
satisfactory to such Indemnified Person from all liability on claims that are
the subject matter of such proceeding and (B) does not include any statement as
to or any admission of fault, culpability or a failure to act by or on behalf of
any Indemnified Person.

         (d) If the indemnification provided for in paragraphs (a) and (b) above
is unavailable to an Indemnified Person or insufficient in respect of any
losses, claims, damages or liabilities referred to therein, then each
Indemnifying Person under such paragraph, in lieu of indemnifying such
Indemnified Person thereunder, shall contribute to the amount paid or payable by
such Indemnified Person as a result of such losses, claims, damages or
liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company and the Guarantors from the offering of the
Securities and the Exchange Securities, on the one hand, and by the Holders from
receiving Securities or Exchange Securities registered under the Securities Act,
on the other hand, or (ii) if the allocation provided by clause (i) is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) but also the relative fault
of the Company and the Guarantors on the one hand and the Holders on the other
in connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the Company and the Guarantors on the one
hand and the Holders on the other shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Company and the Guarantors or by the Holders and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

         (e) The Company, the Guarantors and the Holders agree that it would not
be just and equitable if contribution pursuant to this Section 5 were determined
by PRO RATA allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the
equitable considerations referred to in paragraph (d) above. The amount paid or
payable by an Indemnified Person as a result of the losses, claims, damages and
liabilities referred to in paragraph (d) above shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses incurred
by such Indemnified Person in connection with any such action or claim.
Notwithstanding the provisions of this Section 5, in no event shall a Holder be
required to contribute any amount in excess of the amount by which the total
price at which the Securities or Exchange Securities sold by such Holder exceeds
the amount of any damages that such Holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission. No Person guilty of fraudulent misrepresentation (within the meaning

                                       17
<PAGE>

of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation.

         (f) The remedies provided for in this Section 5 are not exclusive and
shall not limit any rights or remedies that may otherwise be available to any
Indemnified Person at law or in equity.

         (g) The indemnity and contribution provisions contained in this Section
5 shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
the Initial Purchasers or any Holder, their respective affiliates or any Person
controlling any Initial Purchaser or any Holder, or by or on behalf of the
Company or the Guarantors, their respective affiliates or the officers or
directors of or any Person controlling the Company or the Guarantors, (iii)
acceptance of any of the Exchange Securities and (iv) any sale of Registrable
Securities pursuant to a Shelf Registration Statement.

         6.       GENERAL.

         (a) No Inconsistent Agreements. The Company and the Guarantors
represent, warrant and agree that (i) the rights granted to the Holders
hereunder do not in any way conflict with and are not inconsistent with the
rights granted to the holders of any other outstanding securities issued or
guaranteed by the Company or any Guarantor under any other agreement and (ii)
neither the Company nor any Guarantor has entered into, or on or after the date
of this Agreement will enter into, any agreement that is inconsistent with the
rights granted to the Holders of Registrable Securities in this Agreement or
otherwise conflicts with the provisions hereof.

         (b) Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Company and the Guarantors have obtained the written consent of
Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement,
waiver or consent; PROVIDED that no amendment, modification, supplement, waiver
or consent to any departure from the provisions of Section 5 hereof shall be
effective as against any Holder of Registrable Securities unless consented to in
writing by such Holder.

         (c) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, telecopier, or any courier guaranteeing overnight delivery (i)
if to a Holder, at the most current address given by such Holder to the Company
by means of a notice given in accordance with the provisions of this Section
6(c), which address initially is, with respect to the Initial Purchasers, the
address set

                                       18
<PAGE>

forth in the Purchase Agreement; and (ii) if to the Company and the Guarantors,
initially at the Company's address set forth in the Purchase Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c). All such notices and communications shall
be deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged, if telecopied; and on the next
Business Day if timely delivered to an air courier guaranteeing overnight
delivery. Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee, at the
address specified in the Indenture.

         (d) Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; PROVIDED that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Registrable Securities
in violation of the terms of the Purchase Agreement or the Indenture. If any
transferee of any Holder shall acquire Registrable Securities in any manner,
whether by operation of law or otherwise, such Registrable Securities shall be
held subject to all the terms of this Agreement, and by taking and holding such
Registrable Securities such Person shall be conclusively deemed to have agreed
to be bound by and to perform all of the terms and provisions of this Agreement
and such Person shall be entitled to receive the benefits hereof. The Initial
Purchasers (in their capacity as Initial Purchasers) shall have no liability or
obligation to the Company or the Guarantors with respect to any failure by a
Holder to comply with, or any breach by any Holder of, any of the obligations of
such Holder under this Agreement.

         (e) Purchases and Sales of Securities. The Company and the Guarantors
shall not, and shall use their reasonable best efforts to cause their affiliates
(as defined in Rule 405 under the Securities Act) not to, purchase and then
resell or otherwise transfer any Registrable Securities.

         (f) Third Party Beneficiaries. Each Holder shall be a third party
beneficiary to the agreements made hereunder between the Company and the
Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent it deems
such enforcement necessary or advisable to protect its rights or the rights of
other Holders hereunder.

         (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

                                       19
<PAGE>

         (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         (i) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

         (j) Miscellaneous. This Agreement contains the entire agreement between
the parties relating to the subject matter hereof and supersedes all oral
statements and prior writings with respect thereto. This Agreement may not be
amended or modified except by a writing executed by each of the parties hereto.
Section headings herein are for convenience only and are not a part of this
Agreement. If any term, provision, covenant or restriction contained in this
Agreement is held by a court of competent jurisdiction to be invalid, void or
unenforceable or against public policy, the remainder of the terms, provisions,
covenants and restrictions contained herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated. The Company,
the Guarantors and the Initial Purchasers shall endeavor in good faith
negotiations to replace the invalid, void or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of
the invalid, void or unenforceable provisions.

                                       20
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

                                   THE SCOTTS COMPANY

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

                                   SCOTTS MANUFACTURING COMPANY

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

                                   SCOTTS TEMECULA
                                   OPERATIONS, LLC

                                   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

                                   HYPONEX CORPORATION

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

                                       21
<PAGE>

                                   EARTHGRO, INC.

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

                                   SCOTTS PRODUCTS COMPANY

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

                                   SCOTTS PROFESSIONAL
                                   PRODUCTS COMPANY

                                   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

                                       22
<PAGE>

                                       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

                                       MIRACLE-GRO LAWN
                                       PRODUCTS, INC.

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

Confirmed and accepted as of the date first above written:

J.P. MORGAN SECURITIES INC.

For itself and on behalf of the
 several Initial Purchasers

By  /s/ David Capaldi
  ----------------------------
         Authorized Signatory

                                       23

<PAGE>

                                                                      Schedule 1

OMS Investments, Inc.
Hyponex Corporation
EarthGro, Inc.
Scotts Products Co.
Scotts Professional Products Co.
Scotts-Sierra Horticultural Products Company
Scotts-Sierra Crop Protection Company
Scotts-Sierra Investments, Inc.
Swiss Farms Products Inc.
Scotts Manufacturing Company
Scotts Temecula Operations, LLC
Miracle-Gro Lawn Products, Inc.<PAGE>
                                                                     Exhibit 4.1

                                  PETsMART INC.

                   SERIES H PREFERRED STOCK PURCHASE AGREEMENT

                                SEPTEMBER 8, 1991
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                  Page
                                                                                  ----
<S>      <C>                                                                      <C>
1.       Authorization of the Series H Preferred Stock........................       1

2.       Purchase and Sale of the Series H Preferred..........................       1

3.       The Closing..........................................................       1

4.       Conditions of each Purchaser's Obligation at the Closing.............       1

         4.1      Representations and Warranties..............................       1

         4.2      Amendment and Restatement of Certificate of Incorporation...       1

         4.3      Qualifications; Legal Investment............................       1

         4.4      Opinion of the Company's Counsel............................       2

         4.5      Closing Documents...........................................       2

         4.6      Proceedings.................................................       2

5.       Conditions of the Company's Obligations at the Closing...............       2

         5.1      Representations and Warranties..............................       2

         5.2      Performance of Obligations..................................       2

         5.3      Amendment and Restatement of Certificate of Incorporation...       2

         5.4      Waiver of Right of First Refusal............................       2

         5.5      Consent to Grant of Registration Rights.....................       3

         5.6      Registration Rights Agreement...............................       3

         5.7      Qualifications, Legal Investment............................       3

6.       Covenants of the Company.............................................       3

         6.1      Financial Statements and Other Information..................       3

         6.2      Inspection of Property......................................       5

         6.3      Participation in Initial Public Offering....................       5

         6.4      Current Public Information..................................       5

7.       Transfer of Restricted Securities....................................       5

8.       Representations and Warranties of the Company........................       6

         8.1      Organization and Corporate Power............................       6

         8.2      Capital Stock and Related Matters...........................       6

         8.3      Subsidiaries................................................       7

         8.4      Authorization; No Breach....................................       7

         8.5      Financial Statements........................................       8

         8.6      Absence of Undisclosed Liabilities..........................       8
</TABLE>

                                      -i-
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                  Page
                                                                                  ----
<S>      <C>                                                                      <C>
         8.7      No Material Adverse Change..................................       8

         8.8      Absence of Certain Developments.............................       8

         8.9      Assets......................................................       9

         8.10     Tax Matters.................................................      10

         8.11     Contracts and Commitments...................................      10

         8.12     Trademarks and Trade Secrets................................      10

         8.13     Litigation, etc.............................................      10

         8.14     Brokerage...................................................      10

         8.15     Governmental Consent, etc...................................      11

         8.16     Insurance...................................................      11

         8.17     Employees and ERISA.........................................      11

         8.18     Compliance with Laws........................................      11

         8.19     Disclosure..................................................      11

         8.20     Closing Date................................................      12

9.       Covenants of the Purchasers..........................................      12

         9.1      Standstill Agreement........................................      12

         9.2      U.S. Commerce Department Filings............................      12

         9.3      Hart-Scott-Rodino Act.......................................      12

10.      Series H Demand Registrations........................................      12

         10.1     Requests for Registration...................................      12

         10.2     Registrations...............................................      12

         10.3     Priority on Series H Demand Registrations...................      13

         10.4     Restrictions on Series H Demand Registrations...............      13

         10.5     Selection of Underwriters...................................      13

         10.6     Other Registration Rights...................................      13

11.      Piggyback Registrations..............................................      13

         11.1     Right to Piggyback..........................................      13

         11.2     Piggyback Expenses..........................................      14

         11.3     Priority on Primary Registrations...........................      14

         11.4     Priority on Secondary Registrations.........................      14

         11.5     Selection of Underwriters...................................      14

         11.6     Other Registrations.........................................      14
</TABLE>

                                      -ii-
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                  Page
                                                                                  ----
<S>      <C>                                                                      <C>
12.      Holdback Agreement...................................................      15

         12.1     Holder Standstill...........................................      15

         12.2     Company Standstill..........................................      15

13.      Registration Procedures..............................................      15

14.      Registration Expenses................................................      16

         14.1     Company Expenses............................................      16

         14.2     Expenses Reimbursed to Selling Shareholders.................      17

         14.3     Expenses Borne by Selling Shareholders......................      17

15.      Indemnification......................................................      17

         15.1     Company's Indemnification...................................      17

         15.2     Stockholder's Indemnification...............................      17

         15.3     Notice and Defense..........................................      18

         15.4     Full Force and Effect.......................................      18

16.      Participation in Underwritten Registrations..........................      18

17.      Definitions..........................................................      18

18.      Miscellaneous........................................................      20

         18.1     Expenses....................................................      20

         18.2     Remedies....................................................      20

         18.3     Purchaser Representations...................................      20

         18.4     Consent to Amendments.......................................      21

         18.5     Survival of Representations and Warranties..................      22

         18.6     Successors and Assigns......................................      22

         18.7     Severability................................................      22

         18.8     Counterparts................................................      22

         18.9     Descriptive Headings........................................      22

         18.10    Governing Law...............................................      22

         18.11    Notices.....................................................      22
</TABLE>

Schedule of Exceptions

Schedule of Purchasers

Exhibit A - Restated Certificate of Incorporation

Exhibit B - Opinion Letter of Cooley Godward Castro Huddleson & Tatum

Exhibit C - Restated Registration and First Refusal Rights Agreement

                                     -iii-
<PAGE>
                                 PETsMART, INC.

                   SERIES H PREFERRED STOCK PURCHASE AGREEMENT

         THIS AGREEMENT is made as of September 8th, 1991 between PETsMART Inc.,
a Delaware corporation (the "Company"), and the persons and entities listed on
the Schedule of Purchasers attached hereto (each individually a "Purchaser" and
collectively the "Purchasers"). Except as otherwise indicated, capitalized terms
used herein are defined in paragraph 17 hereof.

         The parties hereto agree as follows:

         1. Authorization of the Series H Preferred Stock. The Company will
authorize the issuance and sale to the Purchasers of up to 5,000,000 shares of
its Series H Preferred Stock (the "Series H Preferred") having the rights and
preferences set forth in Exhibit A attached hereto. The Series H Preferred is
convertible into shares of the Company's Common Stock, par value $.00001 per
share (the "Common Stock").

         2. Purchase and Sale of the Series H Preferred. Subject to the terms
and conditions set forth herein, the Company will sell to each Purchaser and
each Purchaser will purchase from the Company the number of shares of the Series
H Preferred specified opposite such Purchaser's name on the Schedule of
Purchasers, at a price of $3.00 per share.

         3. The Closing.

         The closing of the purchase and sale of the Series H Preferred (the
"Closing") will take place at the offices of Cooley Godward Castro Huddleson &
Tatum, Five Palo Alto Square, Fourth Floor, Palo Alto, California, at 1:30 p.m.
California time on September 19, 1991, or at such other place, date and time as
may be mutually agreeable to the Company and a majority in interest of the
Purchasers. At the Closing, the Company will deliver to each Purchaser
certificates evidencing the number of shares of Series H Preferred to be
purchased by such Purchaser, as set forth on the Schedule of Purchasers,
registered in such Purchaser's or its nominee's name, upon payment of the
purchase price thereof by check payable to the Company in immediately available
funds, or by wire transfer of immediately available funds to the account of the
Company, in the amount set forth opposite such Purchaser's name on the Schedule
of Purchasers.

         4. Conditions of each Purchaser's Obligation at the Closing. The
obligation of each Purchaser to purchase and pay for the Series H Preferred at
the Closing is subject to the satisfaction as of the Closing of the following
conditions:

                  4.1 Representations and Warranties. The representations and
warranties contained in paragraph 8 hereof, as qualified by the Schedule of
Exceptions, will be true as though then made, except to the extent of changes
caused by the transactions expressly contemplated herein.

                  4.2 Amendment and Restatement of Certificate of Incorporation.
The Company's Restated Certificate of Incorporation (the "Certificate of
Incorporation") will have been amended and
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restated to read substantially as set forth in Exhibit A hereto, will be in full
force and effect at the Closing as so amended and restated and will not have
been further amended or modified.

                  4.3 Qualifications; Legal Investment. All authorizations,
approvals, or permits, if any, of any governmental authority or regulatory body
of the United States or of any state that are required in connection with the
lawful sale and issuance of the Series H Preferred to such Purchaser pursuant to
this Agreement shall have been duly obtained and shall be in effect on and as of
the Closing. At the time of the Closing, the sale and issuance of the Series H
Preferred and the proposed issuance of the underlying Common Stock to such
Purchaser shall be legally permitted by all laws and regulations to which such
sale and issuances are subject.

                  4.4 Opinion of the Company's Counsel. Such Purchaser will have
received from Cooley Godward Castro Huddleson & Tatum, counsel for the Company,
an opinion in the form of Exhibit B attached hereto, which will be dated the
date of the Closing.

                  4.5 Closing Documents. The Company will have delivered to such
Purchaser all of the following documents:

                           (i) a Compliance Certificate, signed by an officer of
the Company and dated the date of the Closing, stating that the conditions
specified in paragraph 1 and paragraphs 4.1 through 4.3, inclusive, have been
fully satisfied; and

                           (ii) copies of (a) the resolutions duly adopted by
the Company's Board of Directors (the "Board") authorizing the execution,
delivery and performance of this Agreement, the filing of the amendment and
restatement of the Certificate of Incorporation referred to in paragraph 4.2,
the issuance and sale of the Series H Preferred, the reservation for issuance
upon conversion of the Series H Preferred of an aggregate of 5,000,000 shares of
Common Stock, and the consummation of all other transactions contemplated by
this Agreement, (b) the resolutions duly adopted by the Company's stockholders
adopting the amendment and restatement of the Certificate of Incorporation
referred to in paragraph 4.2, and (c) copies of the Certificate of Incorporation
and the Company's By-laws, each as in effect at the Closing, all as certified by
the Secretary or Assistant Secretary of the Company.

                  4.6 Proceedings. All corporate and other proceedings taken or
required to be taken in connection with the transactions contemplated hereby to
be consummated at or prior to the Closing and all documents incident thereto
will be reasonably satisfactory in form and substance to such Purchaser and its
special counsel.

         5. Conditions of the Company's Obligations at the Closing. The
Company's obligation to sell and deliver the Series H Preferred to each
Purchaser at the Closing is subject to the satisfaction as of the Closing of the
following conditions:

                  5.1 Representations and Warranties. The representations and
warranties made by such Purchaser in paragraph 18.3 hereof shall be true and
correct at and as of the Closing as though then made, except to the extent of
changes caused by the transactions expressly contemplated herein.

                  5.2 Performance of Obligations. Such Purchaser shall have
performed and complied with all agreements and conditions herein required to be
performed or complied with by it on or before the Closing.

                  5.3 Amendment and Restatement of Certificate of Incorporation.
The Certificate of Incorporation will have been amended and restated to read
substantially as set forth in Exhibit A hereto,

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will be in full force and effect at the Closing as so amended and restated and
will not have been further amended or modified.

                  5.4 Waiver of Right of First Refusal. The holders of at least
66-2/3% of the Registrable Securities (as defined in that certain Registration
and First Refusal Rights Agreement dated November 30, 1990 among the Company and
certain of its stockholders designated therein (the "Prior Registration
Agreement") will have waived their right of first refusal with respect to the
sale and issuance of up to 5,000,000 shares of Series H Preferred pursuant to
the terms of this Agreement.

                  5.5 Consent to Grant of Registration Rights. The holders of a
majority of the Registrable Securities, as defined in the Prior Registration
Agreement, will have consented to the granting of certain registration rights to
the Purchasers pursuant to the terms of this Agreement.

                  5.6 Registration Rights Agreement. The Company and the holders
of at least 66-2/3% of the Registrable Securities (as defined in the Prior
Registration Agreement) will have consented to an amendment and restatement of
the Prior Registration Agreement in substantially the form of Exhibit C hereto
(the "Registration Rights Agreement") and the Registration Rights Agreement will
be in full force and effect as of the Closing.

                  5.7 Qualifications, Legal Investment. All authorizations,
approvals, or permits, if any, of any governmental authority or regulatory body
of the United States or of any state that are required in connection with the
lawful sale and issuance of the Series H Preferred to such Purchaser pursuant to
this Agreement shall have been duly obtained and shall be in effect on and as of
the Closing. At the time of the Closing, the sale or issuance of the Series H
Preferred and the proposed issuance of the underlying Common Stock to the
Purchaser upon the conversion of the Series H Preferred pursuant to the terms of
the Certificate of Incorporation shall be legally permitted by all laws and
regulations to which such sale and issuances are subject.

         6. Covenants of the Company.

                  6.1 Financial Statements and Other Information.

                           (i) The Company will deliver to each Purchaser (so
long as such Purchaser holds any Series H Preferred or any Underlying Common
Stock), within 90 days after the end of each fiscal year, consolidating and
consolidated statements of income and changes in financial accounts of the
Company and its Subsidiaries for such fiscal year, consolidating and
consolidated balance sheets of the Company and its Subsidiaries as of the end of
such fiscal year, and comparisons of each such statement and balance sheet to
the annual budget and to the preceding fiscal year, all prepared in accordance
with generally accepted accounting principles, consistently applied, and
accompanied by (A) with respect to the consolidated portions of such statements,
an opinion of an independent accounting firm of recognized national standing
(unqualified as to scope), and (B) a copy of such firm's annual management
letter to the Board.

                           (ii) So long as a Purchaser holds at least 500,000
shares of either the Series H Preferred (as such number is proportionately
adjusted for stock dividends, stock splits and recapitalization or other
reorganizations) or Underlying Common Stock, the Company will deliver to such
Purchaser:

                                    (a) as soon as available but in any event
within 30 days after the end of each monthly accounting period in each fiscal
year, unaudited consolidating and consolidated statements of income and changes
in consolidated financial accounts of the Company and its Subsidiaries

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for such monthly period and for the period from the beginning of the fiscal year
to the end of such month, and consolidating and consolidated balance sheets of
the Company and its Subsidiaries as of the end of such monthly period, setting
forth in each case comparison to the annual budget and to the corresponding
period in the preceding fiscal year, and all such statements will be prepared in
accordance with generally accepted accounting principles, consistently applied
(except for normal year-end audit adjustments and footnotes);

                                    (b) as soon as available but in any event
within 45 days after the end of each quarterly accounting period in each fiscal
year, unaudited consolidating and consolidated statements of income and changes
in consolidated financial accounts of the Company and its Subsidiaries for such
quarterly period and for the period from the beginning of the fiscal year to the
end of such quarter, and consolidating and consolidated balance sheets of the
Company and its Subsidiaries as of the end of such quarterly period, setting
forth in each case comparisons to the annual budget and to the corresponding
period in the preceding fiscal year, and all such statements will be prepared in
accordance with generally accepted accounting principles, consistently applied
(except for normal year-end audit adjustments and footnotes);

                                    (c) at least 30 days prior to the end of
each fiscal year, an annual budget prepared on a monthly basis for the Company
and its Subsidiaries for the succeeding fiscal year (displaying anticipated
statements of income, changes in financial position and balance sheets), and
promptly upon preparation thereof any other significant budgets which the
Company prepares and any revisions of such annual or other budgets upon approval
by the Company's board of directors;

                                    (d) within ten days after transmission
thereof, copies of all financial statements, proxy statements, reports and any
other general written communications which the Company sends to its stockholders
and copies of all registration statements and all regular, special or periodic
reports which it files, or any of its officers or directors file with respect to
the Company, with the Securities and Exchange Commission or with any securities
exchange on which any of its securities are then listed, and copies of all press
releases and other statements made available generally by the Company to the
public concerning material developments in the Company's business.

                           (iii) Each of the financial statements referred to in
paragraphs (i) and (ii) will present fairly the financial condition of the
Company as of the dates and for the periods stated therein, subject in the case
of the unaudited financial statements to changes resulting from normal year-end
audit adjustments.

                           (iv) Notwithstanding the foregoing, the provisions of
this paragraph 6.1 will cease to be effective so long as the Company (a) is
subject to the periodic reporting requirements of the Securities Exchange Act
and continues to comply with such requirements and (b) promptly provides to a
Purchaser (so long as such Purchaser holds any Series H Preferred or any
Underlying Common Stock) all reports and other materials filed by the Company
with the Securities and Exchange Commission pursuant to the periodic reporting
requirements of the Securities Exchange Act.

                           (v) Except as otherwise required by law or judicial
order or decree or by any governmental agency or authority, each Purchaser
agrees that it will not disclose the nonpublic information obtained by it
hereunder without the prior consent of the Company, except that a Purchaser may
disclose such information to its own counsel or accountants for the purpose of
receiving professional advice, or in connection with the sale or transfer of any
Series H Preferred or Underlying Common Stock to a proposed transferee who is
not a competitor of the Company (as determined by the Company) if such proposed
transferee agrees in writing to be bound by the provisions hereof.

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                           (vi) The rights granted pursuant to this paragraph
6.1 and paragraph 6.2 below may not be assigned or otherwise conveyed by any
Purchaser or by a subsequent transferee without the written consent of the
Company, unless the proposed transferee meets the minimum Series H Preferred or
Underlying Common Stock holdings specified in the respective paragraph or
subparagraph granting such rights and is not a competitor or potential
competitor of the Company (as determined by the Company).

                  6.2 Inspection of Property. The Company will permit any
representatives designated by a Purchaser who are reasonably acceptable to the
Company, so long as such Purchaser holds at least 500,000 shares of the
outstanding Series H Preferred (as such number of shares is proportionately
adjusted for stock dividends, stock splits and recapitalization or other
reorganization) or Underlying Common Stock, upon reasonable notice and during
normal business hours, to (i) visit and inspect any of the properties of the
Company and its Subsidiaries, (ii) examine the corporate and financial records
of the Company and its Subsidiaries and (iii) discuss the affairs, finances and
accounts of any such corporations with the directors, officers, key employees
and independent accountants of the Company and its Subsidiaries.

                  6.3 Participation in Initial Public Offering. The Company will
work with its underwriters to allow the Purchasers and any Affiliates of the
Purchasers then holding Series H Preferred or Underlying Common Stock to
purchase shares of the Company's Common Stock in the initial underwritten public
offering of the Company's securities pursuant to a registration statement filed
with the Securities and Exchange Commission under the Securities Act ("IPO") to
the extent necessary to allow the Purchasers and any Affiliates of the
Purchasers to maintain in the aggregate the same percentage ownership interest
in the Company as they owned in the aggregate immediately prior to the IPO.

                  6.4 Current Public Information. At all times after the Company
has filed a registration statement with the Securities and Exchange Commission
pursuant to the requirements of either the Securities Act or the Securities
Exchange Act, the Company will file all reports required to be filed by it under
the Securities Act and the Securities Exchange Act and the rules and regulations
adopted by the Securities and Exchange Commission thereunder, and will take such
further action as any holder or holders of Registrable Series H Securities may
reasonably request, all to the extent required to enable such holders to sell
Registrable Series H Securities pursuant to (i) Rule 144 adopted by the
Securities and Exchange Commission under the Securities Act (as such rule may be
amended from time to time), or any similar rule or regulation hereafter adopted
by the Securities and Exchange Commission or (ii) Form S-2, Form S-3 or similar
registration form hereafter adopted by the Securities Exchange Commission. Upon
written request, the Company will deliver to such holders a written statement as
to whether it has complied with such requirements.

         7. Transfer of Restricted Securities.

                           (i) Restricted Securities are transferable pursuant
to (a) public offerings registered under the Securities Act, (b) Rule 144 of the
Securities and Exchange Commission (or any similar rule then in force) if such
rule is available, (c) nonpublic sales to Persons who are "accredited investors"
as defined in Regulation D under the Securities Act, provided that such
regulation is effective at such time and the proposed transferee agrees in
writing to be bound by the provisions of this paragraph and paragraph 18.3(i)
and (d) subject to the conditions specified in subparagraph (ii) below, any
other legally available means of transfer.

                           (ii) In connection with the transfer of any
Restricted Securities (other than a transfer described in subparagraph 7(i)(a)
or (b) above), the holder thereof will deliver written notice to

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the Company describing in reasonable detail the transfer or proposed transfer
and, except in connection with a transfer to Carrefour, an opinion (reasonably
satisfactory to the Company's counsel) of counsel which (to the Company's
reasonable satisfaction) is knowledgeable in securities law matters, to the
effect that such transfer of Restricted Securities may be effected without
registration of such Restricted Securities under the Securities Act. In
addition, if the holder of the Restricted Securities delivers to the Company an
opinion (reasonably satisfactory to the Company's counsel) of such counsel that
no subsequent transfer of such Restricted Securities will require registration
under the Securities Act, the Company will promptly upon such contemplated
transfer deliver new certificates for such Restricted Securities which do not
bear the Securities Act legend set forth in subparagraph (iii) below. If the
Company is not required to deliver new certificates for such Restricted
Securities not bearing such legend, the holder thereof will not transfer the
same until the prospective transferee has confirmed to the Company in writing
its agreement to be bound by the conditions contained in this paragraph and
paragraph 18.3(i).

                           (iii) Each certificate for Restricted Securities will
be imprinted with a legend in substantially the following form:

                  "The securities represented by this certificate have not been
                  registered under the Securities Act of 1933 (the "Act") and
                  are "Restricted Securities" as defined in Rule 144 promulgated
                  under the Act. The securities may not be sold or offered for
                  sale or otherwise distributed except (i) in conjunction with
                  an effective registration statement for the shares under the
                  Act, (ii) in compliance with Rule 144, or (iii) pursuant to an
                  opinion of counsel satisfactory to the corporation that such
                  registration or compliance is not required as to said sale,
                  offer or distribution."

                           (iv) In connection with this paragraph 7, the Company
agrees that it will cooperate with the Purchasers to effect any desired
transfers of Purchasers' Restricted Securities to Carrefour so long as it has
reasonable assurances under this paragraph that such transfers are in compliance
with applicable securities laws.

         8. Representations and Warranties of the Company. As a material
inducement to the Purchasers to enter into this Agreement and purchase the
Series H Preferred, the Company hereby represents and warrants that, except as
disclosed in the Schedule of Exceptions attached hereto:

                  8.1 Organization and Corporate Power. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and is qualified to do business in every jurisdiction
in which the failure to so qualify might reasonably be expected to have a
material adverse effect on the financial condition, operating results or
business prospects of the Company. The Company has all requisite corporate power
and authority and all material licenses, permits and authorizations necessary to
own and operate its properties, to carry on its businesses as now conducted and
presently proposed to be conducted and to carry out the transactions
contemplated by this Agreement. The copies of the Company's charter documents
and By-laws which have been furnished to the Purchasers' counsel reflect all
amendments made thereto at any time prior to the date of this Agreement and are
correct and complete.

                  8.2 Capital Stock and Related Matters.

                           (i) Immediately prior to the Closing, the authorized
capital stock of the Company will consist of (a) 38,183,850 shares of Preferred
Stock, of which 2,630,000 shares will be

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designated as Series A Preferred Stock (all of which will be issued and
outstanding), 4,600,000 shares will be designated as Series B Preferred Stock
(all of which will be issued and outstanding), 241,000 shares will be designated
as Series C Preferred Stock (all of which will be issued and outstanding),
10,475,420 shares will be designated as Series D Preferred Stock (10,200,420 of
which will be issued and outstanding), 3,558,096 shares will be designated as
Series E Preferred Stock (all of which will be issued and outstanding),
6,679,334 shares will be designated as Series F Preferred Stock (all of which
will be issued and outstanding), 5,000,000 shares will be designated as Series G
Preferred (4,969,844 of which will be issued and outstanding) and 5,000,000
shares of Series H Preferred Stock (none of which will be issued and
outstanding); and (b) 70,000,000 shares of Common Stock, of which 6,534,623
shares will be issued and outstanding, 2,630,000 shares will be reserved for
issuance upon conversion of the Series A Preferred Stock, 5,366,309 shares will
be reserved for issuance upon conversion of the outstanding Series B Preferred
Stock, 10,475,420 shares will be reserved for issuance upon conversion of the
outstanding or reserved Series D Preferred Stock, 3,558,096 shares will be
reserved for issuance upon conversion of the outstanding Series E Preferred
Stock, 6,679,334 shares will be reserved for issuance upon conversion of the
outstanding Series F Preferred Stock, 4,959,844 shares will be reserved for
issuance upon conversion of the outstanding Series G Preferred, 5,000,000 shares
will be reserved for issuance upon conversion of the outstanding Series H
Preferred and 5,504,624 shares will be reserved for future issuance to
employees, directors or consultants pursuant to Executive Stock Agreements. As
of the Closing, the Company will not have outstanding any stock or securities
convertible or exchangeable for any shares of its capital stock, or any rights
or options to subscribe for or to purchase its capital stock or any stock or
securities convertible into or exchangeable for its capital stock, except for
the Series A Preferred Stock, Series B Preferred Stock, Series D Preferred
Stock, Series E Preferred Stock, Series F Preferred Stock, Series G Preferred
Stock and Series H Preferred Stock, a warrant to purchase 275,000 shares of
Series D Preferred Stock, and options to purchase an aggregate of approximately
4,077,809 shares of Common Stock held by employees and directors of, or
consultants to, the Company. As of the Closing, the Company will not be subject
to any obligation (contingent or otherwise) to repurchase or otherwise acquire
or retire any shares of its capital stock, except pursuant to the Certificate of
Incorporation and the Executive Stock Agreements. As of the Closing, all of the
outstanding shares of the Company's capital stock will be validly issued, fully
paid and nonassessable.

                           (ii) There are no statutory or contractual
stockholders preemptive rights with respect to the issuance of the Series H
Preferred hereunder or the issuance of the Common Stock upon conversion of the
Series H Preferred, except the rights of Smith, Dougherty and the holders of at
least 150,000 shares of the Series A Preferred Stock, Series B Preferred Stock,
Series D Preferred Stock, Series E Preferred Stock, Series F Preferred Stock or
Series G Preferred Stock, which rights will have been effectively waived prior
to the Closing. The Company has not violated any applicable federal or state
securities laws in connection with the offer, sale or issuance of any of its
capital stock, and the offer, sale and issuance of the Series H Preferred
hereunder does not require registration under the Securities Act or any
applicable state securities laws. To the best of the Company's knowledge, except
for a certain voting agreement by and among Oak Investment Partners, Catalina
Venture Partners, the Company, and certain entities managed by Chancellor
Capital Management, Inc. dated as of April 14, 1989, there are no agreements
between the Company's stockholders with respect to the voting or transfer of the
Company's capital stock.

                  8.3 Subsidiaries. Except for Pacific Coast Distributing, Inc.,
a wholly-owned subsidiary of the Company incorporated in Delaware, the Company
does not own or hold any rights to acquire any shares of stock or any other
security or interest in any other Person.

                  8.4 Authorization; No Breach. The execution, delivery and
performance of this Agreement has been duly authorized by the Company. This
Agreement constitutes a valid and binding obligation of the Company, enforceable
in accordance with its terms, except as enforceability thereof may

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be limited by (i) bankruptcy, insolvency, reorganization, moratorium and other
similar laws affecting creditors' rights generally, and (ii) the availability
and remedies under general equitable principles. The execution and delivery by
the Company of this Agreement, the offering, sale and issuance of the Series H
Preferred hereunder, the issuance of the Common Stock upon conversion of the
Series H Preferred and the fulfillment of and compliance with the respective
terms hereof by the Company, do not and will not (i) conflict with or result in
a breach of the terms, conditions or provisions of, (ii) constitute a default
under, (iii) result in the creation of any material lien, security interest,
charge or encumbrance upon the Company's capital stock or assets pursuant to,
(iv) give any third party the right to accelerate any obligation under, (v)
result in a violation of, or (vi) require any authorization, consent, approval,
exemption or other action by or notice to any court or administrative or
governmental body pursuant to, the Certificate of Incorporation or By-laws of
the Company, or any law, statute, rule or regulation to which the Company is
subject, or any agreement, instrument, order, judgment or decree to which the
Company is subject.

                  8.5 Financial Statements. The following financial statements
will have been delivered to the Purchasers prior to the Closings:

                           (i) the audited balance sheet of the Company as of
February 3, 1991 and the related statements of Operations, Shareholders' Equity
and Cash Flows for the fifty-three week period then ended; and

                           (ii) the unaudited balance sheet of the Company as of
August 4, 1991 (the "Latest Balance Sheet") and the related statements of Income
and Cash Flows for the twenty-six week period then ended.

         Each of the foregoing financial statements (including in all cases the
notes thereto, if any) presents fairly the financial condition of the Company at
the date and for the period therein specified, is consistent with the books and
records of the Company (which, in turn, are accurate and complete in all
material respects) and has been prepared in accordance with generally accepted
accounting principles, consistently applied, subject in the case of the
unaudited financial statements to footnotes and to changes resulting from normal
year-end audit adjustments.

                  8.6 Absence of Undisclosed Liabilities. The Company does not
have any material obligation or liability (whether accrued, absolute,
contingent, unliquidated or otherwise, whether due or to become due) arising out
of transactions entered into at or prior to the Closing, or any action or
inaction at or prior to the Closing, or any state of facts existing at or prior
to the Closing, other than: (i) liabilities set forth on the Latest Balance
Sheet, (ii) liabilities and obligations which have arisen after the date of the
Latest Balance Sheet in the ordinary course of business (none of which is a
liability resulting from breach of contract, breach of warranty, tort,
infringement, claim or lawsuit) and (iii) other liabilities and obligations
expressly disclosed in the Schedule of Exceptions to this Agreement.

                  8.7 No Material Adverse Change. Since the date of the Latest
Balance Sheet, there has been no material adverse change in the Company's
financial condition, operating results, business prospects, employee relations,
customer relations or otherwise.

                  8.8 Absence of Certain Developments.

                           (i) Since the date of the Latest Balance Sheet, the
Company has not:

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                                    (a) issued any notes, bonds or other debt
securities or any equity securities, except shares of its Common Stock issued in
connection with stock option exercises by its employees, directors or
consultants;

                                    (b) borrowed any amount or incurred or
become subject to any liabilities, except under credit arrangements in place at
the time of the Latest Balance Sheet and except for current liabilities incurred
in the ordinary course of business and liabilities under contracts entered into
in the ordinary course of business;

                                    (c) discharged or satisfied any lien or
encumbrance or paid any obligation or liability, other than current liabilities
paid in the ordinary course of business;

                                    (d) declared or made any payment or
distribution of cash or other property to its stockholders with respect to its
stock or purchased or redeemed any shares of its capital stock, except for
repurchases of Common Stock from employees in connection with the termination of
their employment;

                                    (e) except in the ordinary course of
business, mortgaged or pledged any of its properties or assets or subjected them
to any lien, security interest, charge or other encumbrance, except liens for
current property taxes not yet due and payable;

                                    (f) sold, assigned or transferred any
patents, trademarks, service marks, trade names, copyrights, trade secrets or
other intangible assets, or disclosed any proprietary confidential information
to any Person other than an employee or director of the Company absent an
express obligation of nondisclosure;

                                    (g) suffered any extraordinary losses or
waived any rights of material value;

                                    (h) made any capital expenditure or
commitment therefor in excess of $500,000, except for expenditures in connection
with the opening of new stores approved by the Board;

                                    (i) entered into any other transaction other
than in the ordinary course of business or entered into any other material
transaction, whether or not in the ordinary course of business;

                                    (j) made any loans or advances to,
guarantees for the benefit of, or any Investments in, any Persons in excess of
$100,000;

                                    (k) made any charitable contributions or
pledges, except for contributions made in the ordinary course of business for
the purpose of promoting the Company; or

                                    (l) suffered any damage, destruction or
casualty loss exceeding in the aggregate $100,000, whether or not covered by
insurance;

                           (ii) The Company has not at any time made any
payments for political contributions or made any bribes, kickback payments or
other illegal payments.

                  8.9 Assets. The Company has good and marketable title to, or a
valid leasehold interest in, the properties and assets used by it, located on
its premises or shown on the Latest Balance

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Sheet or acquired thereafter, free and clear of all liens, security interests,
charges and encumbrances, except as disclosed on the Latest Balance Sheet, liens
for current property taxes not yet due and payable and non-material liens
incidental to the conduct of the Company's business which were not incurred in
connection with the borrowing of money and which do not in the aggregate detract
from the value of the property or materially impair the use thereof in the
operation of its business. The Company's buildings, equipment and other tangible
assets are in good operating condition in all material respects and are fit for
use in the ordinary course of business. The Company owns, or has a valid
leasehold interest in, all assets necessary for the conduct of its business as
presently conducted and as presently proposed to be conducted.

                  8.10 Tax Matters. The Company has filed all tax returns which
it is required to file; all such returns are true and correct in all material
respects; the Company has in all material respects paid or withheld all taxes
which it is obligated to pay or withhold from amounts owing to any employee,
creditor or third party; the Company has not waived any statute of limitations
with respect to taxes or agreed to any extension of time with respect to a tax
assessment or deficiency; the assessment of any additional taxes for periods for
which returns have been filed is not expected to exceed the recorded liability
therefor; and there are no material unresolved questions or claims concerning
the Company's tax liability. The Company has not made an election under Section
341(f) of the Internal Revenue Code of 1986, as amended.

                  8.11 Contracts and Commitments. The Company has performed all
material obligations required to be performed by it and is not in default under
or in breach of or in receipt of any claim of default or breach under any
material agreement or instrument to which the Company is subject; no event has
occurred which with the passage of time or the giving of notice or both would
result in a material default, breach or event of noncompliance under any
material agreement or instrument to which the Company is subject. The Company
has no present expectation or intention of not fully performing all such
obligations. The Company has no knowledge of any material breach or anticipated
breach by the other parties to any material contract or commitment to which it
is a party, and the Company is not a party to any materially adverse contract or
commitment.

                  8.12 Trademarks and Trade Secrets. The Company owns or has
sufficient rights to all the copyrights, trademarks, trade names and service
marks necessary for the operation of its business as now conducted and as
proposed to be conducted. There are no pending or threatened claims against the
Company alleging that the conduct of the Company's business infringes or
conflicts with the rights of others under trade names, service marks,
trademarks, copyrights and trade secrets. To the best of the Company's
knowledge, the Company's business as now conducted and as proposed to be
conducted will not infringe or conflict with the rights of others, including
rights under trade names, service marks, trademarks, copyrights and trade
secrets. The Company has not disclosed any of its trade secrets to any person
except pursuant to a license or other agreement obligating the recipient to
maintain the confidentiality thereof. To the best of the Company's knowledge, no
party is infringing on any copyright, trademark, service mark or trade name or
is undertaking to misappropriate any confidential information or trade secret of
the Company.

                  8.13 Litigation, etc. There are no actions, suits,
proceedings, orders, investigations or claims pending or, to the best of the
Company's knowledge, threatened against or affecting the Company at law or in
equity, or before or by any governmental department, commission, board, bureau,
agency or instrumentality the outcome of which would materially adversely affect
the Company. The Company is not subject to any arbitration proceedings under
collective bargaining agreements or otherwise or to the best of the Company's
knowledge, any governmental investigations or inquiries and, to the best of the
Company's knowledge, there is no basis for any of the foregoing. The Company has
not received any

                                       13
<PAGE>
opinion or memorandum or legal advice from legal counsel to the effect that it
is exposed, from a legal standpoint, to any liability or disadvantage which may
be material to its business.

                  8.14 Brokerage. There are no claims for brokerage commissions,
finders' fees or similar compensation in connection with the transactions
contemplated by this Agreement based on any arrangement or agreement binding
upon the Company except for amounts owed to Donaldson Lufkin & Jenrette
Securities Corporation, the cost of which will be borne by the Company. The
Company will pay, and hold the Purchasers harmless against, any liability, loss
or expense (including, without limitation, reasonable attorneys' fees and
out-of-pocket expenses) arising in connection with any such claim.

                  8.15 Governmental Consent, etc. No permit, consent, approval
or authorization of, or declaration to or filing with, any governmental
authority is required in connection with the execution, delivery and performance
by the Company of this Agreement or the other agreements contemplated hereby, or
the consummation by the Company of any other transactions contemplated hereby or
thereby, except as expressly contemplated herein or in the exhibits hereto.

                  8.16 Insurance. The Company maintains adequate insurance
coverage with respect to each of its properties, assets and businesses, and all
of the Company's insurance policies are in full force and effect as of the
Closing. The Company is not in default with respect to its obligations under any
insurance policy maintained by it. The insurance coverage of the Company is
customary for corporations of similar size engaged in similar lines of business.

                  8.17 Employees and ERISA.

                           (i) The Company is not aware that any executive or
key employee of the Company or any group of employees of the Company has any
plans to terminate employment with the Company. The Company has complied in all
material respects with all laws relating to the employment of labor, including
provisions thereof relating to wages, hours, equal opportunity, collective
bargaining and the payment of social security and other taxes, and the Company
is not aware that it has any material labor relations problems.

                           (ii) Neither the Company, nor, to the best of the
Company's knowledge, any of its employees is subject to any non-compete,
nondisclosure, confidentiality, employment, consulting or similar agreements
relating to the present or proposed business activities of the Company, except
for agreements between the Company and its present and former employees and for
confidentiality agreements which the Company requires prospective business
partners to enter into as a condition of any exchange of proprietary
information.

                           (iii) The Company does not presently maintain or
contribute to, and has never maintained or contributed to, any "employee benefit
plan," as such term is defined in Section 3 of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), and the Company presently does not
contribute to or ever has contributed to any "multi-employer plan," as such term
is defined in Section 3 of ERISA.

                  8.18 Compliance with Laws. The Company is not in violation of
any law or any regulation or requirement which violation might reasonably be
expected to have a material adverse effect upon the financial condition,
operating results or business prospects of the Company, and the Company has not
received notice of any such violation.

                  8.19 Disclosure. The Company has previously delivered to the
Purchasers or their representative its Confidential Private Placement
Memorandum, dated July 1991 (the "Private Placement

                                       14
<PAGE>
Memorandum"). Neither the Private Placement Memorandum nor any representation or
warranty by the Company contained in this Agreement, nor any other written
statement or certificate furnished or to be furnished to the Purchasers pursuant
hereto or in connection with the transactions contemplated hereby by the Company
(when read together) contains or will contain any untrue statement of a material
fact or omits or will omit to state a material fact necessary to make the
statements contained therein or herein not misleading in light of the
circumstances under which they were made, provided that while the projections in
the Private Placement Memorandum were made by management in good faith based on
factual assumptions believed to be true, no representations or warranties are
made with respect to the accuracy or reliability of such projections.

                  8.20 Closing Date. The representations and warranties of the
Company contained in this paragraph 8 and elsewhere in this Agreement and all
information contained in any exhibit, schedule or attachment hereto will be true
and correct in all material respects on the date of the Closing as though then
made, except as expressly contemplated by this Agreement.

         9. Covenants of the Purchasers.

                  9.1 Standstill Agreement. Each Purchaser hereby covenants and
agrees that it will not, nor will it permit any of its Affiliates to, purchase
or otherwise acquire, directly or indirectly, any additional equity securities
of the Company (or rights or options to purchase such securities) after the
Closing under this Agreement which will result in the Purchasers and its
Affiliates owning in the aggregate, directly or indirectly, more than 20% of the
Company's outstanding voting securities (treating all convertible securities on
an as-converted basis), without the prior approval of the Board. The Purchasers'
obligations under this paragraph 9.1 shall terminate the earliest of seven (7)
years from the date of this Agreement or five (5) years following the closing of
the first underwritten public offering of the Company's securities under the
Securities Act.

                  9.2 U.S. Commerce Department Filings. Each Purchaser agrees
that it will provide the Company with such information about itself and its
Affiliates as is necessary to allow the Company to complete and file, in a
timely manner after the Closing, a Form BE-13 and Form BE-607 with the Bureau of
Economic Analysis of the U.S. Department of Commerce.

                  9.3 Hart-Scott-Rodino Act. Each Purchaser agrees that it will
notify the Company of any proposed transfer of shares of the Company's
securities by it to its Affiliates or to another Purchaser or another
Purchaser's Affiliates or blood relatives, and will comply with the requirements
of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the rules
promulgated thereunder (the "Hart-Scott-Rodino Act") in connection with any such
transfer, including making a filing with the U.S. Federal Trade Commission prior
to the consummation of any such transfer if required by the Hart-Scott-Rodino
Act. Each Purchaser further agrees not to enter into any voting agreement or
voting trust with any other Purchaser or another Purchaser's Affiliate or blood
relative with respect to the Company's securities or any other agreement to vote
or have its shares of Company's securities voted together with any shares held
by any other Purchaser or another Purchaser's Affiliate or blood relative
without first notifying the Company and complying with the requirements of the
Hart-Scott-Rodino Act.

         10. Series H Demand Registrations.

                  10.1 Requests for Registration. At any time after March 31,
1994, or such earlier time as the Company has effected the initial underwritten
public offering of its securities under the Securities Act, the holders of a
majority of the Registrable Series H Securities may request registration under
the Securities Act of all or part of their Registrable Series H Securities on
Form S-1, S-2 or any similar long-form registration ("Series H Demand
Registrations"). Within ten days after receipt of any

                                       15
<PAGE>
such request, the Company will give written notice of such request to all other
holders of Registrable Series H Securities and will include in such registration
all Registrable Series H Securities with respect to which the Company has
received written requests for inclusion therein within 15 days after the date of
the Company's notice.

                  10.2 Registrations. The holders of Registrable Series H
Securities will be entitled to request three Series H Demand Registrations in
which the Company will pay all Registration Expenses as set forth in Section 14
hereof; provided that either (a) registration is requested for at least 30% of
the Registrable Series H Securities, or (b) the aggregate offering value of the
Registrable Series H Securities requested to be registered in any Registration
equals at least $10,000,000. A registration will not count as one of the
permitted Series H Demand Registrations until it has become effective and unless
the holders of Registrable Series H Securities are able to register and sell at
least 50% of the Registrable Series H Securities requested to be included in
such registration; provided that in any event the Company will pay all
Registration Expenses in connection with any Series H Demand Registration. All
Series H Demand Registrations shall be underwritten offerings.

                  10.3 Priority on Series H Demand Registrations. The Company
will not include in any Series H Demand Registration any securities which are
not Registrable Series H Securities or Registrable Securities without the
written consent of the holders of a majority of the Registrable Series H
Securities requesting such registration. If other securities are permitted to be
included in a Series H Demand Registration which is an underwritten offering and
the managing underwriters advise the Company in writing that in their opinion
the number of Registrable Series H Securities and other securities requested to
be included exceeds the number of Registrable Series H Securities and other
securities which can be sold in such offering, the Company will include in such
registration (i) first, the Registrable Series H Securities requested to be
included in such registration, provided that at least 25% of the shares to be
included in such registration shall be Registrable Securities, (ii) second, any
Registrable Securities, pro rata among the holders thereof on the basis of the
number of such shares requested to be included by such holder and (iii) other
securities requested to be included in such registration.

                  10.4 Restrictions on Series H Demand Registrations. The
Company will not be obligated to effect any Series H Demand Registration within
six months after the effective date of a registration of Common Stock filed by
the Company under the Securities Act, or such a registration which the Company
intends to file within 30 days after its receipt of the request to effect the
Series H Demand Registration and the Company so notifies the holders of
Registrable Series H Securities of its intent within such 30-day period,
provided that the Company has not previously delayed any Series H Demand
Registration by such a notice. In addition, no more than once during any fiscal
year, the Company may postpone for up to 90 days the filing or the effectiveness
of a registration statement for a Series H Demand Registration provided that in
such event, the holders of Registrable Series H Securities requesting such
Series H Demand Registration will be entitled to withdraw such request and, if
such request is withdrawn, such Series H Demand Registration will not count as a
Series H Demand Registration. Furthermore, if the holders of Registrable
Securities request the Company to register any Registrable Securities prior to a
request from the holders of Registrable Series H Securities for a Series H
Demand Registration and the Company is effecting or has elected to postpone the
registration of such Registrable Securities, the Company shall not be obligated
to effect such Series H Demand Registration.

                  10.5 Selection of Underwriters. The Company will have the
right to select the investment banker(s) and manager(s) to administer the
offering, subject to the approval of the holders of a majority of the
Registrable Series H Securities included in any Series H Demand Registration,
which will not unreasonably be withheld.

                                       16
<PAGE>
                  10.6 Other Registration Rights. Except as provided in this
Agreement and the Registration Rights Agreement, the Company will not grant to
any Persons the right to request the Company to register any equity securities
of the Company, or any securities convertible or exchangeable into or
exercisable for such securities, if such right are senior to or on a parity with
the rights granted hereunder, without the written consent of the holders of a
majority of the Registrable Series H Securities.

         11. Piggyback Registrations.

                  11.1 Right to Piggyback. After the Company has effected the
initial underwritten public offering of its securities under the Securities Act,
whenever the Company subsequently proposes to register any of its securities
under the Securities Act (other than pursuant to a Series H Demand Registration)
and the registration form to be used may be used for the registration of
Registrable Series H Securities (a "Series H Piggyback Registration"), the
Company will give prompt written notice (in any event within five business days
after its receipt of notice of any exercise of other demand registration rights)
to all holders of Registrable Series H Securities of its intention to effect
such a registration and will include in such registration all Registrable Series
H Securities with respect to which the Company has received written requests for
inclusion therein within 15 days after the receipt of the Company's notice. The
holders of Registrable Series H Securities shall not have any piggyback rights
under this Section 11 with respect to the initial underwritten public offering
of the Company's Securities.

                  11.2 Piggyback Expenses. The Registration Expenses of the
holders of Registrable Series H Securities will be paid by the Company in all
Series H Piggyback Registrations.

                  11.3 Priority on Primary Registrations. If a Series H
Piggyback Registration is an underwritten primary registration on behalf of the
Company, and the managing underwriters advise the Company in writing that in
their opinion the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering, the Company
will include in such registration (i) first, the securities the Company proposes
to sell, provided that at least 25% of the shares to be included in such
registration shall be Registrable Series H Securities and Registrable Securities
with Priority Securities included before any other Registrable Series H
Securities or Registrable Securities, in each case pro rata among the holders of
such securities on the basis of the number of such shares requested to be
included by such holders, (ii) second, the Registrable Series H Securities and
Registrable Securities requested to be included in such registration and not
included under (i) above with Priority Securities included before any other
Registrable Series H Securities or Registrable Securities, in each case pro rata
among the holders of such Registrable Series H Securities and Registrable
Securities on the basis of the number of such shares requested to be included by
such holders, (iii) third, other securities requested to be included in such
registration.

                  11.4 Priority on Secondary Registrations. If a Series H
Piggyback Registration is an underwritten secondary registration on behalf of
holders of the Company's securities, and the managing underwriters advise the
Company in writing that in their opinion the number of securities requested to
be included in such registration exceeds the number which can be sold in such
offering, the Company will include in such registration (i) first, the
securities requested to be included therein by the holders requesting such
registration, provided that at least 25% of the shares to be included in such
registration shall be Registrable Series H Securities and, in the case where
such registration is not a Demand Registration, Registrable Securities with
Priority Securities included before any other Registrable Series H Securities or
Registrable Securities, in each case pro rata among the holders of such
securities on the basis of the number of such shares requested to be included by
such holders, (ii) second, the Registrable Series H Securities and, in the case
where such registration is not a Demand Registration, Registrable Securities
requested to be included in such registration and not included under (i) above
with Priority Securities included before any other Registrable Series H
Securities or Registrable Securities, in each case

                                       17
<PAGE>
pro rata among the holders of securities on the basis of the number of such
shares requested to be included by such holders, (iii) third, other securities
requested to be included in such registration.

                  11.5 Selection of Underwriters. If any Series H Piggyback
Registration is an underwritten offering, the investment banker(s) and
manager(s) selected for the offering must be nationally recognized firm(s).

                  11.6 Other Registrations. If the Company has previously filed
a registration statement with respect to Registrable Series H Securities
pursuant to paragraph 10 or pursuant to this paragraph 11, or a Demand
Registration or a Piggyback Registration, and if such previous registration has
not been withdrawn or abandoned, the Company will not file or cause to be
effected any other registration of any of its equity securities or securities
convertible or exchangeable into or exercisable for its equity securities under
the Securities Act (except on Form S-8 or any successor form), whether on its
own behalf or at the request of any holder or holders of such securities, until
a period of at least six months has elapsed from the effective date of such
previous registration.

         12. Holdback Agreement.

                  12.1 Holder Standstill. Each holder of Registrable Series H
Securities agrees not to effect any public sale or distribution of equity
securities of the Company, or any securities convertible into or exchangeable or
exercisable for such securities, during the seven days prior to and the 180-day
period beginning on the effective date of any registration by the Company of
Common Stock (except as part of such registration and except registrations on
Form S-8 or any successor form), unless the underwriters managing the registered
public offering otherwise agree.

                  12.2 Company Standstill. The Company agrees (i) not to effect
any public sale or distribution of its equity securities, or any securities
convertible into or exchangeable or exercisable for such securities, during the
seven days prior to and during the 90-day period beginning on the effective date
of any underwritten Series H Demand Registration or any underwritten Series H
Piggyback Registration (except as part of such underwritten registration or
pursuant to registrations on Form S-8 or any successor form or in connection
solely with the exercise of outstanding stock options held by employees or
consultants of the Company), unless the underwriters managing the registered
public offering otherwise agree, and (ii) to cause each officer, director and
holder of at least 1% of its equity securities (on a fully diluted basis), or
any securities convertible into or exchangeable or exercisable for such
securities, purchased from the Company at any time (other than in a registered
public offering) to agree not to effect any public sale or distribution of any
such securities during such period (except as part of such underwritten
registration, if otherwise permitted), unless the underwriters managing the
registered public offering otherwise agree.

         13. Registration Procedures. Whenever the holders of Registrable Series
H Securities have requested that any Registrable Series H Securities be
registered pursuant to this Agreement, the Company will use its best efforts to
effect the registration and the sale of such Registrable Series H Securities in
accordance with the intended method of disposition thereof (including the
registration of the Company's Series H Preferred Stock held by a holder of
Registrable Series H Securities requesting registration as to which the Company
has received reasonable assurances that only Registrable Series H Securities
will be distributed to the public), and pursuant thereto the Company will as
expeditiously as possible:

                           (i) prepare and file with the Securities and Exchange
Commission a registration statement with respect to such Registrable Series H
Securities and use its best efforts to cause such registration statement to
become effective (provided that before filing a registration statement or
prospectus or any amendments or supplements thereto, the Company will furnish to
the counsel selected

                                       18
<PAGE>
by the holders of a majority of the Registrable Series H Securities covered by
such registration statement copies of all such documents proposed to be filed,
which documents will be subject to the review of such counsel);

                           (ii) prepare and file with the Securities and
Exchange Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to
keep such registration statement effective for a period of not less than six
months or, if earlier, the completion of the distribution of the registered
securities, and comply with the provisions of the Securities Act with respect to
the disposition of all securities covered by such registration statement during
such period in accordance with the intended methods of disposition by the
sellers thereof set forth in such registration statement;

                           (iii) furnish to each seller of Registrable Series H
Securities such number of copies of such registration statement, each amendment
and supplement thereto, the prospectus included in such registration statement
(including each preliminary prospectus) and such other documents as such seller
may reasonably request in order to facilitate the disposition of the Registrable
Series H Securities owned by such seller;

                           (iv) use its best efforts to register or qualify such
Registrable Series H Securities under such other securities or blue sky laws of
such jurisdictions as any seller reasonably requests and do any and all other
acts and things which may be reasonably necessary or advisable to enable such
seller to consummate the disposition in such jurisdictions of the Registrable
Series H Securities owned by such seller (provided that the Company will not be
required to (i) qualify generally to do business in any jurisdiction where it
would not otherwise qualify but for this subparagraph, (ii) subject itself to
taxation in any such jurisdiction or (iii) consent to general service of process
in any such jurisdiction);

                           (v) notify each seller of such Registrable Series H
Securities, at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, of the happening of any event as a result of
which the prospectus included in such registration statement contains an untrue
statement of a material fact or omits any fact necessary to make the statements
therein not misleading, and, at the request of any such seller, the Company will
prepare a supplement or amendment to such prospectus so that, as thereafter
delivered to the purchasers of such Registrable Series H Securities, such
prospectus will not contain an untrue statement of a material fact or omit to
state any fact necessary to make the statements therein not misleading;

                           (vi) cause all such Registrable Series H Securities
to be listed on each securities exchange, if any, on which similar securities
issued by the Company are then listed;

                           (vii) provide a transfer agent and registrar for all
such Registrable Series H Securities not later than the effective date of such
registration statement;

                           (viii) enter into such customary agreements
(including underwriting agreements in customary form) and take all such other
actions as the holders of a majority of the Registrable Series H Securities
being sold or the underwriters, if any, reasonably request in order to expedite
or facilitate the disposition of such Registrable Series H Securities
(including, without limitation, effecting a stock split or a combination of
shares); and

                           (ix) make available for inspection by any seller of
Registrable Series H Securities, any underwriter participating in any
disposition pursuant to such registration statement, and any attorney,
accountant or other agent retained by any such seller or underwriter, all
financial and other

                                       19
<PAGE>
records, pertinent corporate documents and properties of the Company, and cause
the Company's officers, directors, employees and independent accountants to
supply all information reasonably requested by any such seller, underwriter,
attorney, accountant or agent in connection with such registration statement.

         14. Registration Expenses.

                  14.1 Company Expenses. All expenses incident to the Company's
performance of or compliance with this Agreement, including, without limitation,
all registration and filing fees, of compliance with securities or blue sky
laws, printing expenses, messenger and delivery expenses, and fees and
disbursements of counsel for the Company and all independent certified public
accountants, underwriters (excluding discounts and commissions) and other
Persons retained by the Company (all such expenses being herein called
"Registration Expenses"), will be borne as provided in this Agreement, except
that the Company will, in any event, pay its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit or
quarterly review, the expense of any liability insurance and the expenses and
fees for listing the securities to be registered on each securities exchange on
which similar securities issued by the Company are then listed.

                  14.2 Expenses Reimbursed to Selling Shareholders. In
connection with the three Series H Demand Registrations and each Series H
Piggyback Registration, the Company will reimburse the holders of Registrable
Series H Securities covered by such registration for the reasonable fees (not to
exceed $25,000 in the case of any such Series H Demand Registration or $7,500 in
the case of any such Series H Piggyback Registration) and disbursements of one
counsel chosen by the holders of a majority of such Registrable Series H
Securities.

                  14.3 Expenses Borne by Selling Shareholders. To the extent
Registration Expenses are not required to be paid by the Company, each holder of
securities included in any registration hereunder will pay those Registration
Expenses allocable to the registration of such holder's securities so included,
and any Registration Expenses not so allocable will be borne by all sellers of
securities included in such registration in proportion to the aggregate selling
price of the securities to be so registered. The Company shall not be obligated
to pay the Registration Expenses for any registration that is subsequently
withdrawn at the request of the holders of Registrable Series H Securities,
unless such withdrawal is pursuant to paragraph 10.4 hereof or due to a material
adverse change in the business of the Company that was not known to the holders
at the time of the request.

         15. Indemnification.

                  15.1 Company's Indemnification. The Company agrees to
indemnify, to the extent permitted by law, each holder of Registrable Series H
Securities, its officers and directors and each Person who controls such holder
(within the meaning of the Securities Act) against all losses, claims, damages,
liabilities and expenses caused by any untrue or alleged untrue statement of
material fact contained in any registration statement, prospectus or preliminary
prospectus or any amendment thereof or supplement thereto or any omission or
alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading, except insofar as the same are
caused by or contained in any information furnished in writing to the Company by
such holder expressly for use therein or by such holder's failure to deliver a
copy of the registration statement or prospectus or any amendments or
supplements thereto after the Company has furnished such holder with a
sufficient number of copies of the same. In connection with an underwritten
offering, the Company will indemnify such underwriters, their officers and
directors and each Person who controls such underwriters (within the meaning of
the Securities Act) to the same extent as provided above with respect to the
indemnification of the holders of Registrable Series H Securities.

                                       20
<PAGE>
                  15.2 Stockholder's Indemnification. In connection with any
registration statement in which a holder of Registrable Series H Securities is
participating, each such holder will furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in
connection with any such registration statement or prospectus and, to the extent
permitted by law, will indemnify the Company, its directors and officers and
each Person who controls the Company (within the meaning of the Securities Act)
against any losses, claims, damages, liabilities and expenses resulting from any
untrue or alleged untrue statement of material fact contained in the
registration statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading, but only to the extent that such untrue statement or omission is
contained in any information or affidavit so furnished in writing by such
holder; provided that the obligation to indemnify will be several, not joint and
several, among such holders of Registrable Series H Securities and the liability
of each such holder of Registrable Series H Securities will be in proportion to
and limited to the net amount received by such holder from the sale of
Registrable Series H Securities pursuant to such registration statement.

                  15.3 Notice and Defense. Any Person entitled to
indemnification hereunder will (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification
and (ii) unless in such indemnified party's reasonable judgment a conflict of
interest between such indemnified and indemnifying parties may exist with
respect to such claim, permit such indemnifying party to assume the defense of
such claim with counsel reasonably satisfactory to the indemnified party. If
such defense is assumed, the indemnifying party will not be subject to any
liability for any consent to the entry of any judgment or any settlement made by
the indemnified party without its consent (but such consent will not be
unreasonably withheld). An indemnifying party who is not entitled to, or elects
not to, assume the defense of a claim will not be obligated to pay the fees and
expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable judgment
of any indemnified party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties with respect to such
claim.

                  15.4 Full Force and Effect. The indemnification provided for
under this Agreement will remain in full force and effect regardless of any
investigation made by or on behalf of the indemnified party or any officer,
director or controlling Person of such indemnified party and will survive the
transfer of securities. The Company also agrees to make such provisions, as are
reasonably requested by any indemnified party, for contribution to such party in
the event the Company's indemnification is unavailable for any reason.

         16. Participation in Underwritten Registrations. No Person may
participate in any registration hereunder which is underwritten unless such
Person (a) agrees to sell such Person's securities on the basis provided in any
underwriting arrangements approved by the Person or Persons entitled hereunder
to approve such arrangements and (b) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
required under the terms of such underwriting arrangements.

         17. Definitions. For the purposes of this Agreement, the following
terms have the meanings set forth below:

         "Affiliate" means any person, corporation or other entity which
controls, is controlled by, or is under common control with another person,
corporation or entity. A person, corporation or other entity shall be regarded
as in control of another corporation or entity if it owns or directly or
indirectly controls at least 50% of the voting stock or other ownership interest
of the other corporation or entity, or if it

                                       21
<PAGE>
possesses, directly or indirectly, the power to direct or cause the direction of
the management and policies of the corporation or other entity.

         "Carrefour" means Carrefour, a societe anonyme organized under the laws
of France with its principal place of business at 5 Avenue du Long Rayage,
Lisses, 91005 Evry Cedex, France.

         "Investment" as applied to any Person means (i) any direct or indirect
purchase or other acquisition by such Person of any notes, obligations,
instruments, stock, securities or ownership interest of any other Person and
(ii) any capital contribution by such Person to any other Person.

         "Compliance Certificate" means a certificate signed by the Company's
president or its chief financial officer, stating that (i) the officer signing
such certificate has made or has caused to be made such investigations as are
necessary in order to permit him to verify the accuracy of the information set
forth in such certificate and (ii) to the best of such officer's knowledge, such
certificate does not misstate any material fact and does not omit to state any
fact necessary to make the certificate not misleading.

         "Person" means an individual, a partnership, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political
subdivision thereof.

         "Preferred Stock" means the Company's Series A Preferred Stock, Series
B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E
Preferred Stock, Series F Preferred Stock, Series G Preferred Stock and Series H
Preferred Stock.

         "Proprietary Rights" means any patents, registered and common law
trademarks, service marks, trade names, copyrights, licenses and other similar
rights (including, without limitation, know-how, trade secrets and other
confidential information) and applications for each of the foregoing, if any.

         "Registrable Series H Securities" means (i) any Common Stock issued or
issuable upon the conversion of any Series H Preferred Stock and (ii) any
securities issued or issuable with respect to the Common Stock referred to in
clause (i) by way of a stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other
reorganization. As to any particular Registrable Series H Securities, such
securities will cease to be Registrable Series H Securities when they have been
sold or otherwise transferred to a Person who is not a Permitted Transferee. For
purposes of this Agreement, a Person will be deemed to be a holder of
Registrable Series H Securities whenever such Person has the right to acquire
such Registrable Series H Securities (by conversion or otherwise, but
disregarding any legal restrictions upon the exercise of such right), whether or
not such acquisition has actually been effected.

         "Restricted Securities" means (i) the Series H Preferred issued
hereunder, (ii) the Common Stock issued upon conversion of the Series H
Preferred and (iii) any securities issued with respect to the securities
referred to in clauses (i) and (ii) above by way of a stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization. As to any particular Restricted
Securities, such securities will cease to be Restricted Securities when they
have (a) been effectively registered under the Securities Act and disposed of in
accordance with the registration statement covering them, (b) become eligible
for sale pursuant to Rule 144 (or any similar provision then in force) under the
Securities Act or (c) been otherwise transferred and new certificates for them
not bearing the Securities Act legend set forth in paragraph 10.3 have been
delivered by the Company in accordance with paragraph 7(ii). Whenever any
particular securities cease to be Restricted Securities, the holder thereof will
be entitled to receive from the Company, without expense, new securities of like
tenor not bearing a Securities Act legend of the character set forth in
paragraph 7(iii).

                                       22
<PAGE>
         "Securities Act" means the Securities Act of 1933, as amended, or any
successor federal law then in force.

         "Securities Exchange Act" means the Securities Exchange Act of 1934, as
amended, or any successor federal law then in force.

         "Securities and Exchange Commission" includes any governmental body or
agency succeeding to the functions thereof.

         "Subsidiary" means any corporation of which the securities having a
majority of the ordinary voting power in electing the board of directors are, at
the time as of which any determination is being made, owned by the Company
either directly or through one or more Subsidiaries.

         "Underlying Common Stock" means (i) the Common Stock issued or issuable
upon conversion of the Series H Preferred and (ii) any Common Stock issued or
issuable with respect to the Common Stock referred to in clause (i) above by way
of stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. Any Person who
holds Series H Preferred will be deemed to be the holder of the Underlying
Common Stock obtainable upon conversion of the Series H Preferred regardless of
any restriction on the conversion of the Series H Preferred. As to any
particular shares of Underlying Common Stock, such shares will cease to be
Underlying Common Stock when they have been (a) effectively registered under the
Securities Act and disposed of in accordance with the registration statement
covering them or (b) distributed to the public pursuant to Rule 144 (or any
similar provision then in force) under the Securities Act.

         The terms "Registrable Securities", "Demand Registrations", "Piggyback
Registrations" and "Priority Securities" have the meanings set forth in the
Registration Rights Agreement.

         18. Miscellaneous.

                  18.1 Expenses. The Company agrees to pay, and hold the
Purchasers and all holders of Series H Preferred and Common Stock issued upon
conversion of the Series H Preferred harmless against liability for the payment
of stamp and other taxes which may be payable in respect of the execution and
delivery of this Agreement or the issuance, delivery or acquisition of any
shares of the Series H Preferred or any shares of Common Stock issuable upon
conversion of the Series H Preferred.

                  18.2 Remedies. Each holder of Series H Preferred will have all
rights and remedies set forth in this Agreement, the Certificate of
Incorporation and all rights and remedies which such holders have been granted
at any time under any other agreement or contract and all of the rights which
such holders have under any law. Such rights are cumulative and may be exercised
in any order and no partial or successive exercise of any rights shall
constitute an election of remedies. Any Person having any rights under any
provision of this Agreement will be entitled to enforce such rights
specifically, to recover damages by reason of any breach of any provision of
this Agreement and to exercise all other rights granted by law.

                  18.3 Purchaser Representations. Each Purchaser for itself and
for no other Purchasers hereby represents as follows:

                           (i) The Purchaser is acquiring the shares of Series H
Preferred Stock purchased hereunder and will acquire the other Restricted
Securities issued or issuable upon conversion of or as a distribution upon such
shares for its own account, and not as nominee or agent, with the present
intention of holding such securities for purposes of investment, and it has no
intention of selling such

                                       23
<PAGE>
securities in a public distribution in violation of the federal securities laws
or any applicable state securities laws; provided that nothing contained herein
will prevent any Purchaser and subsequent holders of Restricted Securities from
transferring such securities in compliance with the provisions of paragraph 7
hereof.

                           (ii) There are no claims for brokerage commissions,
finders fees or similar compensation in connection with the transactions
contemplated by this Agreement based upon any arrangement or agreement binding
upon the Purchaser for which the Company may be liable, and the Purchaser will
pay, and hold the Company and the other Purchasers harmless against, any
liability, loss or expense (including, without limitation reasonable attorneys'
fees and out-of-pocket expenses) for such claims arising out of the actions of
the Purchaser or its employees.

                           (iii) To the best of its knowledge, the Purchaser has
been furnished with such materials and has been given access to such information
relating to the Company, together with such additional information as is
necessary to verify the accuracy of the information supplied, as it or its
qualified representative has requested. The Purchaser has been afforded the
opportunity to ask such questions regarding the Company as it has found
necessary to make an informed investment decision with respect to the Series H
Preferred. The foregoing, however, does not limit or modify the representations
and warranties of the Company set forth in paragraph 8 of this Agreement.

                           (iv) By reason of the Purchaser's business or
financial experience, or the business or financial experience of its
professional adviser, it has the capacity to protect its own interests in
connection with the transactions contemplated in this Agreement and is capable
of evaluating the merits and risks of its prospective investment in the Company.
The Purchaser has the ability to bear the economic risks of the investment,
including a complete loss of its investment in the Series H Preferred.

                           (v) If the Purchaser is a corporation, partnership,
trust or other entity, it was not formed for the specific purpose of acquiring
the Series H Preferred offered hereunder.

                           (vi) The Purchaser hereby acknowledges that any
future transfer of the Company's securities among the Purchasers or their
Affiliates or blood relatives or any future acquisition by any Purchasers, their
Affiliates or blood relatives of any voting securities of the Company may
require the filing of a Notification and Report Form for Certain Mergers and
Acquisitions under the Hart-Scott-Rodino Act prior to consummating any such
transfer or acquisition.

                           (vii) If the Purchaser is an individual, the
Purchaser does not own or control more than 50% of the outstanding voting
securities of any Purchaser which is a corporation.

                           (viii) The Purchaser has not entered into any voting
agreement or voting trust with any other Purchaser or Affiliate or blood
relative of a Purchaser with respect to any of the Company's securities or any
other agreement to vote or have its shares of the Company's securities voted
together with any shares of the Company's securities held by any other Purchaser
or any Affiliate or blood relative of a Purchaser.

                           (ix) FOURCAR B.V. represents that it is not an
Affiliate of S.A. De NOYANGE, and S.A. De NOYANGE represents that it is not an
Affiliate of FOURCAR B.V.

                           (x) The Purchaser has full power and authority to
execute, deliver and perform this Agreement and to own the Series H Preferred
Stock. This Agreement has been duly authorized, executed and delivered by the
Purchaser, and, upon due execution and delivery by the Company, this Agreement
will be a valid and binding agreement of the Purchaser enforceable in

                                       24
<PAGE>
accordance with its terms, subject to laws of general application relating to
bankruptcy, insolvency and the relief of debtors and rules of law governing
specific performance, injunctive relief or other equitable remedies.

                  18.4 Consent to Amendments. Except as otherwise expressly
provided herein, the provisions of this Agreement may be amended and the Company
may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if the Company has obtained the written
consent of the holders of a majority of the outstanding Series H Preferred;
provided that if there is no Series H Preferred outstanding, the provisions of
this Agreement may be amended and the Company may take any action herein
prohibited with the written consent of the holders of a majority of the
Underlying Common Stock. No other course of dealing between the Company and the
holder of any Series H Preferred or Underlying Common Stock or any delay in
exercising any rights hereunder or under the Certificate of Incorporation will
operate as a waiver of any rights of any such holders. For purposes of this
Agreement, shares of Series H Preferred or Underlying Common Stock held by the
Company will not be deemed to be outstanding. If the Company pays any
consideration to any holder of Series H Preferred or Underlying Common Stock for
such holder's consent to any amendment, modification or waiver hereunder, the
Company shall also pay each other holder granting its consent hereunder
equivalent consideration computed on a pro rata basis.

                  18.5 Survival of Representations and Warranties. All
representations and warranties contained herein or made in writing by any party
in connection herewith will survive the execution and delivery of this
Agreement, regardless of any investigation made by any Purchasers or on its
behalf.

                  18.6 Successors and Assigns. Except as otherwise expressly
provided herein, all covenants and agreements contained in this Agreement by or
on behalf of any of the parties hereto will bind and inure to the benefit of the
respective successors and assigns of the parties hereto whether so expressed or
not. In addition, and whether or not any express assignment has been made, the
provisions of this Agreement, except for the provisions of paragraphs 10 and 11
hereof, which are for any Purchaser's benefit as a purchaser or holder of Series
H Preferred or Underlying Common Stock are also for the benefit of, and
enforceable by, any subsequent holder of such Series H Preferred or such
Underlying Common Stock. Whether or not any express assignment has been made,
the provisions of this Agreement with respect to paragraphs 10 and 11 hereof
which are for the benefit of purchasers or holders of Registrable Series H
Securities are also for the benefit of, and enforceable by, a subsequent
transferee (a "Permitted Transferee") of such securities if (i) the Company
consents to an assignment of such benefits, (ii) the transferee is Carrefour or
a Purchaser under this Agreement, or (iii) the transferee is acquiring other
than in a Public Sale (whether in one transaction or a series of transactions)
an aggregate of at least 1,500,000 shares of Registrable Series H Securities (as
adjusted for stock dividends, stock splits or a recapitalization or other
reorganization).

                  18.7 Severability. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision will be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of this Agreement.

                  18.8 Counterparts. This Agreement may be executed
simultaneously in two or more counterparts, any one of which need not contain
the signatures of more than one party, but all such counterparts taken together
will constitute one and the same Agreement.

                  18.9 Descriptive Headings. The descriptive headings of this
Agreement are inserted for convenience only and do not constitute a part of this
Agreement.

                                       25
<PAGE>
                  18.10 Governing Law. The corporate law of Delaware will govern
all issues concerning the relative rights of the Company and its stockholders.
All other questions concerning the construction, validity and interpretation of
this Agreement and the exhibits and schedules hereto will be governed by the
internal law, and not the law of conflicts, of California.

                  18.11 Notices. All notices, demands or other communications to
be given or delivered under or by reason of the provisions of this Agreement
will be in writing and will be deemed to have been given when delivered
personally or mailed by certified or registered mail, return receipt requested
and postage prepaid, to the recipient. Such notices, demands and other
communications will be sent to the Purchasers at the respective addresses
indicated on the Schedule of Purchasers hereto and to the Company at the address
indicated below:

                           PETsMART, Inc.
                           10000 N. 31st Avenue
                           Suite C-300
                           Phoenix, AZ  85051
                           Attn:  Chief Financial Officer

                           with a copy to:

                           Cooley Godward Castro Huddleson & Tatum
                           Five Palo Alto Square - 4th Floor
                           Palo Alto, CA  94306
                           Attn:  Alan C. Mendelson, Esq.

or to such other address or to the attention of such other person as the
recipient party has specified by prior written notice to the sending party.

                                       26
<PAGE>
         IN WITNESS WHEREOF, the parties have executed this Series H Preferred
Stock Purchase Agreement as of the date first written above.

<TABLE>
<CAPTION>
PETsMART, INC                             PURCHASERS:
<S>                                       <C>
By:  /s/ Samuel J. Parker                 Yves Sisteron
     --------------------------------     -------------------------------------
     Samuel J.  Parker                    (Print Name of Purchaser)
     President

                                          /s/ Yves Sisteron
                                          -------------------------------------
                                          (Signature)

                                          Attorney for the Purchasers
                                          -------------------------------------
                                          (Title of Signatory, if applicable)
</TABLE>

                               PURCHASE AGREEMENT

                                       27
<PAGE>
                             SCHEDULE OF PURCHASERS

<TABLE>
<CAPTION>
         PURCHASER                     SHARES                 AMOUNT
         ---------                     ------                 ------
<S>                                  <C>                   <C>
S.A.  De NOYANGE                     2,023,500             $ 6,070,500
10 Impasse Robiquet
75006 Paris, France

FOURCAR B.V.                         1,428,500               4,285,500
Subsidiary at 100%
of Carrefour Nederland,
Netherlands

Fondation Breugeien                    666,000               1,998,000
Vaduz
c/o Balser 25 Bd.
Helvetique, Geneva,
Switzerland

Fondation Appomatox                    120,000                 360,000
6, rue d'Italie
Geneva, Switzerland

Francois Charleix                      476,000               1,428,000
La Brillanne
Aix en Provence
Bouches du Rhone,
France

Marie-Pierre Fournier                  143,000                 429,000
27, rue Edouard
Nortier
Neuilly sur Seine,
France

Jacques Fournier                       143,000                 429,000
1 Av. Des Tilleuls
75016 Paris, France

TOTAL
                                     ---------             -----------
                                     5,000,000             $15,000,000
</TABLE>

                               PURCHASE AGREEMENT

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