AMENDMENT NO. 5 TO CREDIT AGREEMENT

 

             AMENDMENT NO. 5 TO CREDIT AGREEMENT (this “Amendment”) is entered
into as of March 31, 2001, by and among HAUSER, INC., a Delaware corporation
(the “Company”), HAUSER TECHNICAL SERVICES, INC., a Delaware corporation
(“Technical”), BOTANICALS INTERNATIONAL EXTRACTS, INC., a Delaware corporation,
ZETAPHARM, INC., a New York corporation, and WILCOX NATURAL PRODUCTS, INC., a
Delaware corporation (collectively, the “Borrowers”), and WELLS FARGO BANK, N.A.
(the “Lender”).

RECITALS

                           WHEREAS, the Borrowers are currently indebted to the
Lender pursuant to the terms and conditions of that certain Credit Agreement
dated as of June 11, 1999, as heretofore amended (the “Current Agreement”; and
as amended hereby, the “Agreement”); and

                           WHEREAS, the aggregate amount of Revolving Loans
presently outstanding under the Current Agreement exceeds the aggregate
Borrowing Base thereunder;

                           WHEREAS, the Lender and the Borrowers have agreed to
certain changes in the terms and conditions set forth in the Agreement and have
agreed to amend the Agreement to reflect said changes.

                           NOW, THEREFORE, for valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree that the Agreement shall be amended as follows:

             A.         Amendments.

                           1.          In Section 1.01 of the Agreement, the
defined term "Borrowing Base" is amended by replacing the term "$4,000,000"
appearing in the provision at the end of the definition, with the term
"$4,800,000."

             B.          Conditions.  This Amendment shall not become effective
until the date on which pursuant to the provisions of Section 8.03 of the
Agreement, the Borrowers shall have paid, or reimbursed the Lender for, all of
the Lender’s costs and expenses (including the fees and disbursements of outside
counsel and allocated in-house counsel) in connection with, or related to, the
negotiating and execution and effectiveness of this Agreement.

             C.          General.  Except as specifically provided herein, all
terms and conditions of the Agreement and, as applicable, prior amendments
thereto, remain in full force and effect, without waiver or modification.  All
terms defined in the Agreement shall have the same meaning when used in this
Amendment.  This Amendment shall be effective upon delivery by the Lender to the
Company of an executed counterpart original or facsimile copy.

                          The Borrowers hereby remake all representations and
warranties contained in the Agreement and reaffirm all covenants set forth
therein.  The Borrowers further certify that as of the date of this Amendment,
giving effect to the provisions hereof, there exists no Event of Default as
defined in the Agreement, nor any condition, act or event which with the giving
of notice or the passage of time or both would constitute any such Event of
Default.

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             IN WITNESS WHEREOF, the parties hereto have caused this Amendment
to be executed as of the date and year first written above.

 

HAUSER, INC. WELLS FARGO BANK, N.A.     By:   /S/ KENNETH CLEVELAND

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By:  /S/ ART BROKX

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Name:  Kenneth Cleveland Name:  Art Brokx Title:    Chief Executive Officer
Title:    Vice President     BOTANICALS INTERNATIONALEXTRACTS, INC. ZETAPHARM,
INC.     By: /S/ KENNETH CLEVELAND

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By: /S/ KENNETH CLEVELAND

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Name:  Kenneth Cleveland Name:  Kenneth Cleveland Title:    Chief Executive
Officer Title:    Chief Executive Officer     WILCOX NATURAL PRODUCTS, INC.
HAUSER TECHNICAL SERVICES, INC.     By: /S/ KENNETH CLEVELAND

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By: /S/ KENNETH CLEVELAND

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Name:  Kenneth Cleveland Name:  Kenneth Cleveland Title:    Chief Executive
Officer Title:    Chief Executive Officer