Document:

Exhibit 4.1

 

Exhibit 4.1

CONFORMED COPY

JOINDER AGREEMENT

          JOINDER AGREEMENT, dated as of March 18, 2005, entered into by THE SCOTTS MIRACLE-GRO COMPANY,
an Ohio corporation (the “New Borrower”), relating to the Second Amended and Restated
Credit Agreement, dated as of October 22, 2003 (as amended by the First Amendment, dated
as of August 13, 2004, and the Second Amendment, dated as of November 5, 2004, the “Credit
Agreement”) by and among The Scotts Company (the “Existing Borrower”), certain
subsidiaries of the Existing Borrower from time to time party thereto, the lenders from time to
time party thereto, and JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase Bank), as
administrative agent (in such capacity, the “Administrative Agent”). Capitalized terms
used but not defined herein shall have the meanings given such terms in the Credit Agreement.

W I T N E S S E T H:

          WHEREAS, concurrently with the execution of this Joinder Agreement, the Existing Borrower will
effect a corporate reorganization, as permitted by subsection 7.3(d) of the Credit Agreement;

          WHEREAS, pursuant to subsection 7.3(d)(i) of the Credit Agreement, the Existing Borrower has
elected that the New Borrower will assume and agree to perform all covenants, agreements, rights,
obligations and liabilities of the Existing Borrower under the Credit Agreement and the other Loan
Documents;

          NOW, THEREFORE, in consideration of the premises, the parties hereto hereby agree as follows:

          1. The New Borrower hereby acknowledges that it has received and reviewed a copy of the
Credit Agreement and the other Loan Documents, and shall assume and agree to perform all covenants,
agreements, rights, obligations and liabilities of the Existing Borrower under the Credit Agreement
and the other Loan Documents from and after the date hereof.

          2. The New Borrower represents and warrants that the representations and warranties contained
in Section 4 of the Credit Agreement as they relate to such New Borrower are true and correct on
the date hereof.

          3. From and after the date hereof, all references in the Credit Agreement to the defined
terms “Scotts” and “Borrower” shall refer to the New Borrower.

          4. The address, taxpayer identification number and jurisdiction of incorporation of the New
Borrower is set forth in Annex I to this Joinder Agreement.

          5. THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

 

 

          IN WITNESS WHEREOF, each of the undersigned has caused this Joinder Agreement to be duly
executed and delivered by its proper and duly authorized officer as of the day and year first above
written.

	 	 	 	 	 
	 	THE SCOTTS MIRACLE-GRO COMPANY

 	 
	 	By:  	/s/  James Hagedorn
 	 
	 	 	Name:  	James Hagedorn 	 
	 	 	Title:  	Chairman, President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	ACKNOWLEDGED AND AGREED TO:	 	 
	 
	 	 	 	 
	THE SCOTTS COMPANY	 	 
	 
	 	 	 	 
	By:

	 	/s/ Edward R. Claggett	 	 
	

	 	 	 	 
	

	 	Name: Edward R. Claggett	 	 
	

	 	Title: Vice President	 	 
	 
	 	 	 	 
	JPMORGAN CHASE BANK, N.A. (formerly known

as JPMorgan Chase Bank), as Administrative Agent
	 
	 	 	 	 
	By:

	 	/s/ Randolph Cates	 	 
	

	 	 	 	 
	

	 	Name: Randolph Cates	 	 
	

	 	Title: Vice PresidentExhibit 4.2

 

Exhibit 4.2

SUPPLEMENTAL INDENTURE

               SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as of October 15, 2004, among
Smith & Hawken, Ltd. (the “Guaranteeing Subsidiary”), a subsidiary of The Scotts Company (or its
successor), a corporation organized under the laws of Ohio (the “Company”), and U.S. Bank National
Association, as trustee under the indenture referred to below (the “Trustee”).

WITNESSETH

               WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of October 8, 2003, providing for the issuance of an unlimited aggregate
principal amount of 6.625% Senior Subordinated Notes due 2013 (the “Notes”);

               WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture on the terms and conditions set forth herein (the “Subsidiary Guarantee”);
and

               WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

               NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

               1. Capitalized Terms. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.

               2. Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees as follows:

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

	 	(i)  	the principal of and interest on the Notes and
Registration Default Damages, if any, will be promptly paid in full
when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of and interest on the
Notes, if any, if

 

 

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

	 	(b)  	The obligations hereunder shall be unconditional, irrespective
of the validity, regularity or enforceability of the Notes or the Indenture,
the absence of any action to enforce the same, any waiver or consent by any
Holder of the Notes with respect to any provisions hereof or thereof, the
recovery of any judgment against the Company, any action to enforce the same or
any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a guarantor.
	 
	 	(c)  	The following is hereby waived: diligence, presentment, demand
of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever.
	 
	 	(d)  	This Subsidiary Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes and the
Indenture.
	 
	 	(e)  	If any Holder or the Trustee is required by any court or
otherwise to return to the Company, the Guarantors, or any Custodian, Trustee,
liquidator or other similar official acting in relation to either the Company
or the Guarantors, any amount paid by either to the Trustee or such Holder,
this Subsidiary Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect.
	 
	 	(f)  	The Guaranteeing Subsidiary shall not be entitled to any right
of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby.
	 
	 	(g)  	As between the Guarantors, on the one hand, and the Holders and
the Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article 6 of the Indenture for the
purposes of this Subsidiary Guarantee, notwithstanding any stay,

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	 	   	injunction or
other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration
of acceleration of such obligations as provided in Article 6 of the
Indenture, such obligations (whether or not due and payable) shall forthwith
become due and payable by the Guarantors for the purpose of this Subsidiary
Guarantee.
	 
	 	(h)  	The Guarantors shall have the right to seek contribution from
any non-paying Guarantor so long as the exercise of such right does not impair
the rights of the Holders under the Guarantee.
	 
	 	(i)  	The obligations hereunder shall be subject to the subordination
provisions of the Indenture.

               3. Execution and Delivery. Each Guaranteeing Subsidiary agrees that the Subsidiary Guarantees
shall remain in full force and effect notwithstanding any failure to endorse on each Note a
notation of such Subsidiary Guarantee.

               4. Guaranteeing Subsidiary May Consolidate, Etc. on Certain Terms.

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

	 	(i)  	subject to Section 11.05 of the Indenture, the
Person formed by or surviving any such consolidation or merger (if
other than a Guarantor) unconditionally assumes all the obligations of
such Guarantor, pursuant to a supplemental indenture in form and
substance reasonably satisfactory to the Trustee, under the Notes, the
Indenture, the Registration Rights Agreement and the Subsidiary
Guarantee on the terms set forth herein or therein; and
	 
	 	(ii)  	immediately after giving effect to such
transaction, no Default or Event of Default exists.

	 	(b)  	In case of any such consolidation, merger, sale or conveyance
and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the Subsidiary Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of the Indenture to be
performed by the Guarantor, such successor Person shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor. Such successor Person thereupon may cause to be signed
any or all of the Subsidiary Guarantees to be endorsed upon all of the Notes
issuable hereunder which theretofore shall

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	 	   	not have been signed by the Company
and delivered to the Trustee. All the Subsidiary Guarantees so issued shall in all respects have the same
legal rank and benefit under the Indenture as the Subsidiary Guarantees
theretofore and thereafter issued in accordance with the terms of the
Indenture as though all of such Subsidiary Guarantees had been issued at the
date of the execution hereof.
	 
	 	(c)  	Except as set forth in Articles 4 and 5 of the Indenture, and
notwithstanding clauses (a) and (b) above, nothing contained in the Indenture
or in any of the Notes shall prevent any consolidation or merger of a Guarantor
with or into the Company or another Guarantor, or shall prevent any sale or
conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Company or another Guarantor.

               5. Releases.

	 	(a)  	In the event of a sale or other disposition of all of the
assets of any Guarantor, by way of merger, consolidation or otherwise, or a
sale or other disposition of all to the capital stock of any Guarantor, then
such Guarantor (in the event of a sale or other disposition, by way of merger,
consolidation or otherwise, of all of the capital stock of such Guarantor) or
the corporation acquiring the property (in the event of a sale or other

disposition of all or substantially all of the assets of such Guarantor) will
be released and relieved of any obligations under its Subsidiary Guarantee;
provided that the Net Proceeds of such sale or other disposition are applied in
accordance with the applicable provisions of the Indenture, including without
limitation Section 4.10 of the Indenture. Upon delivery by the Company to the
Trustee of an Officers’ Certificate and an Opinion of Counsel to the effect
that such sale or other disposition was made by the Company in accordance with
the provisions of the Indenture, including without limitation Section 4.10 of
the Indenture, the Trustee shall execute any documents reasonably required in
order to evidence the release of any Guarantor from its obligations under its
Subsidiary Guarantee.
	 
	 	(b)  	Any Guarantor not released from its obligations under its
Subsidiary Guarantee shall remain liable for the full amount of principal of
and interest on the Notes and for the other obligations of any Guarantor under
the Indenture as provided in Article 11 of the Indenture.

               6. No Recourse Against Others. No past, present or future director, officer, employee,
incorporator or stockholder of the Guaranteeing Subsidiary, as such, shall have any liability for
any obligations of the Company or any Guaranteeing Subsidiary under the Notes, any Subsidiary
Guarantees, the Registration Rights Agreement, the Indenture or this Supplemental Indenture or for
any claim based on, in respect of, or by reason of, such

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obligations or their creation. Each
Holder of the Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes.

               7. NEW YORK LAW TO GOVERN. SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK.

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

               9. Effect of Headings. The Section headings herein are for convenience only and shall not
affect the construction thereof.

               10. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the
recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary.

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

Dated: October 15, 2004

	 	 	 	 	 
	 	SMITH & HAWKEN, LTD

 	 
	 	By:  	/s/ Paul Crawley
 	 
	 	Name:  	 	Paul Crawley 	 
	 	Title:  	 	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

   as Trustee

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

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