Document:

AMENDMENT NO. 2 TO AMENDED AND RESTATED CREDIT AGREEMENT

AMENDMENT NO. 2 TO

AMENDED AND RESTATED CREDIT AGREEMENT

This Amendment No. 2 to Amended and Restated Credit Agreement (this
"Amendment") is entered into with reference to the Amended and
Restated Credit Agreement dated as of August 1, 2000 (as heretofore amended, the
"Credit Agreement") among Wild Oats Markets, Inc.
("Borrower"), the Lenders party thereto, and Wells Fargo Bank,
National Association, as Administrative Agent. Capitalized terms used but not
defined herein are used with the meanings set forth for those terms in the
Credit Agreement. Section references herein relate to the Credit Agreement
unless otherwise stated.

RECITALS

	Pursuant to Section 6.14, Borrower is required to have
      Stockholders' Equity of not less than $110,125,000 as of September 29,
      2001, $108,375,000 as of October 27, 2001, $106,175,000 as of November 24,
      2001 and $103,605,000 as of December 29, 2001.
	Since the date of the First Amendment, Borrower's accountants have
      advised Borrower to record certain pre-tax restructuring charges
      associated with the closure of certain kitchens, bakeries and warehouses
      in Borrower's third Fiscal Quarter 2001 statement of operations rather
      than recording such charges during the fourth Fiscal Quarter 2001 (as was
      contemplated at the time of the execution and delivery of the First
      Amendment).
	Borrower's recordation of such restructuring charges against the third
      Fiscal Quarter 2001 statement of operations (rather than during the fourth
      Fiscal Quarter) will cause Borrower to be in violation of the
      Stockholders' Equity covenant as of September 29, 2001 and may cause
      further breaches of such covenant as of October 27, 2001 and November 24,
      2001.
	As a result of the change in timing for recognition of the
      aforementioned restructuring charges, Borrower has requested that the
      Lenders waive the Event of Default that would otherwise occur as a result
      of the foregoing Stockholders' Equity covenant violation as of September
      29, 2001 and to amend Section 6.14 to reduce the required levels of
      Stockholders' Equity for the October 27, 2001 and November 24, 2001
      measurement dates (with no change made to the December 29, 2001
      Stockholders' Equity requirement or for any measurement date thereafter).
	Subject to the terms and conditions set forth herein, the Administrative
      Agent and the Lenders are willing to waive such Event of Default and to
      amend the Credit Agreement as set forth below.

 

AGREEMENT

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Borrower and the Administrative Agent, acting
with the consent of the Requisite Lenders pursuant to Section 11.2 of the
Credit Agreement, agree as follows:

 

1. Representation and Warranty. Borrower represents and warrants to
the Lenders that, other than the violation regarding Stockholders' Equity
described above and after giving effect to this Amendment, no Default or Event
of Default has occurred and remains continuing under the Credit Agreement.

2. Waiver. In reliance upon the foregoing, the Lenders hereby waive
Borrower's compliance with Section 6.14 for the period ended September
29, 2001, provided, however, Stockholders' Equity, as reflected in
the final consolidated financial statements of Borrower and its Subsidiaries to
be delivered to the Lenders pursuant Section 7.1(b) of the Credit
Agreement for the Fiscal Quarter ended September 29, 2001, is not less than
$109,625,000.

3. Section 6.14-"Stockholders' Equity". Section 6.14
is amended and restated to read in full as follows:

  
    6.14 Stockholders' Equity. Permit Stockholders'
    Equity, as of (a)  October 27, 2001, to be less than $107,875,000,
    (b) November 24, 2001, to be less than $105,675,000,
    (c) December 29, 2001, to be less than $103,605,000, and
    (d) the last day of any Fiscal Month thereafter, to be less than the sum
    of (i) $103,605,000, plus (ii) 90% of Net Income in each
    Fiscal Quarter ending after December 29, 2001 (with no deduction for a
    net loss in any such Fiscal Quarter) plus (c) 100% of the
    proceeds of any issuance by Borrower of equity securities (except to
    employees or former employees of Borrower pursuant to an employee stock
    option plan or employee stock purchase plan maintained by Borrower) after
    the Restructure Date; provided, however, that if the Equity
    Achievement occurs, Stockholders' Equity will thereafter be tested on a
    Fiscal Quarter basis (rather than on a Fiscal Month basis as set forth
    above).

  

4. Conditions Precedent. The effectiveness of this Amendment shall be
conditioned upon the receipt by the Administrative Agent of all of the
following, each properly executed by an authorized officer of each party thereto
and dated as of the date hereof:

  
    (a) Counterparts of this Amendment executed by all parties hereto;

    (b) Written consent of the Requisite Lenders as required under Section
    11.2 of the Credit Agreement in the form of Exhibit A to this Amendment;
    and

    (c) Written consent of the Subsidiary Guarantors in the form of Exhibit B
    to this Amendment.

  

5. Confirmation. In all other respects, the terms of the Credit
Agreement and the other Loan Documents are hereby confirmed.

 

IN WITNESS WHEREOF, Borrower and the Administrative Agent have executed this
Amendment by their duly authorized representatives.

Dated: November 12, 2001

  
    
      
        
          
            WILD OATS MARKETS, INC.

            
              
                
                  
                     

                  

                

              

            

            By:   /s/

                   Freya R. Brier

                   Vice President Legal

            
              
                
                  
                     

                  

                

              

            

            WELLS FARGO BANK, NATIONAL

            ASSOCIATION, as Administrative Agent

            By   /s/

                   Ellen J. Trach

                   Vice President

          

        

      

    

  

Exhibit A to Amendment No. 2

CONSENT OF LENDER

Reference is hereby made to that certain Amended and Restated Credit
Agreement dated as of August 1, 2001 (as heretofore amended, the "Credit
Agreement") among Wild Oats Markets, Inc. ("Borrower"), the
Lenders party thereto and Wells Fargo Bank, National Association, as
Administrative Agent. Capitalized terms used but not defined herein are used
with the meanings set forth for those terms in the Credit Agreement.

The undersigned Lender hereby consents to the execution and delivery of
Amendment No. 2 to Amended and Restated Credit Agreement by the Administrative
Agent on its behalf substantially in the form of the most recent draft presented
to the undersigned Lender.

 

Date: November 9, 2001

 

  
    
      
        
          Wells Fargo Bank, National Association

          By  /s/

          Ellen J. Trach

          Vice President

          
            
              
                
                  
                     

                  

                

              

            

          

        

      

    

  

Exhibit A to Amendment No. 2

CONSENT OF LENDER

Reference is hereby made to that certain Amended and Restated Credit
Agreement dated as of August 1, 2001 (as heretofore amended, the "Credit
Agreement") among Wild Oats Markets, Inc. ("Borrower"), the
Lenders party thereto and Wells Fargo Bank, National Association, as
Administrative Agent. Capitalized terms used but not defined herein are used
with the meanings set forth for those terms in the Credit Agreement.

The undersigned Lender hereby consents to the execution and delivery of
Amendment No. 2 to Amended and Restated Credit Agreement by the Administrative
Agent on its behalf substantially in the form of the most recent draft presented
to the undersigned Lender.

 

Date: November 9, 2001

 

  
    
      
        
          
            Bank One, NA

            By   /s/

            Phillip D. Martin

            Senior Vice President

            
              
                
                  
                     

                  

                

              

            

          

        

      

    

  

Exhibit A to Amendment No. 2

CONSENT OF LENDER

Reference is hereby made to that certain Amended and Restated Credit
Agreement dated as of August 1, 2001 (as heretofore amended, the "Credit
Agreement") among Wild Oats Markets, Inc. ("Borrower"), the
Lenders party thereto and Wells Fargo Bank, National Association, as
Administrative Agent. Capitalized terms used but not defined herein are used
with the meanings set forth for those terms in the Credit Agreement.

The undersigned Lender hereby consents to the execution and delivery of
Amendment No. 2 to Amended and Restated Credit Agreement by the Administrative
Agent on its behalf substantially in the form of the most recent draft presented
to the undersigned Lender.

 

Date: November 9, 2001

 

  
    
      
        
          
            Cooperative Centrale Raiffeisen-Boerenleenbank, B.A., "Rabobank
            Nederland", New York Branch, as a Lender

            By   /s/

            Edward J. Reyser

            Managing Director

            By   /s/

            John McMahon

            Vice President

          

        

      

    

  

Exhibit A to Amendment No. 2

CONSENT OF LENDER

Reference is hereby made to that certain Amended and Restated Credit
Agreement dated as of August 1, 2001 (as heretofore amended, the "Credit
Agreement") among Wild Oats Markets, Inc. ("Borrower"), the
Lenders party thereto and Wells Fargo Bank, National Association, as
Administrative Agent. Capitalized terms used but not defined herein are used
with the meanings set forth for those terms in the Credit Agreement.

The undersigned Lender hereby consents to the execution and delivery of
Amendment No. 2 to Amended and Restated Credit Agreement by the Administrative
Agent on its behalf substantially in the form of the most recent draft presented
to the undersigned Lender.

 

Date: November 8, 2001

 

  
    
      
        
          
            Harris Trust and Savings Bank

            By   /s/

            David C. Fisher

            Vice President

          

        

      

    

  

Exhibit A to Amendment No. 2

CONSENT OF LENDER

Reference is hereby made to that certain Amended and Restated Credit
Agreement dated as of August 1, 2001 (as heretofore amended, the "Credit
Agreement") among Wild Oats Markets, Inc. ("Borrower"), the
Lenders party thereto and Wells Fargo Bank, National Association, as
Administrative Agent. Capitalized terms used but not defined herein are used
with the meanings set forth for those terms in the Credit Agreement.

The undersigned Lender hereby consents to the execution and delivery of
Amendment No. 2 to Amended and Restated Credit Agreement by the Administrative
Agent on its behalf substantially in the form of the most recent draft presented
to the undersigned Lender.

 

Date: November 9, 2001

 

  
    
      
        
          
            Key Bank National Association

            By   /s/

            Michelle K. Bushey

            Vice President

            
              
                
                  
                     

                  

                

              

            

          

        

      

    

  

Exhibit B to Amendment No. 2

CONSENT OF SUBSIDIARY GUARANTORS

Reference is hereby made to that certain Amended and Restated
Credit Agreement dated as of August 1, 2000 among Wild Oats Markets, Inc.
("Borrower"), the Lenders party thereto, and Wells Fargo Bank,
National Association, as Administrative Agent (as heretofore amended, the
"Credit Agreement").

Each of the undersigned Subsidiary Guarantors hereby consents
to Amendment No. 2 to Amended and Restated Credit Agreement in the form
executed by Borrower and confirms that the Subsidiary Guaranty to which it is a
party remains in full force and effect.

Dated: As of November 12, 2001

"Subsidiary Guarantors"

WILD MARKS,
INC.                            
SPARKY, INC.

By: /s/                                                      
By: /s/

Karen
Novotny                                        
Karen Novotny

Secretary                                                 
Secretary

WILD OATS FINANCIAL,
INC.           WILD OATS OF
TEXAS, INC.

By: /s/                                                      
By:  /s/

Melody
Pickett                                        
Richard Vara

President                                                 
SecretaryAMENDMENT NO 3 TO AMENDED AND RESTATED CREDIT AGREEMENT

AMENDMENT NO. 3 TO

AMENDED AND RESTATED CREDIT AGREEMENT

This Amendment No. 3 to Amended and Restated Credit
Agreement (this "Amendment") is entered into with reference to the
Amended and Restated Credit Agreement dated as of August 1, 2000 (the
"Credit Agreement") among Wild Oats Markets, Inc.
("Borrower"), the Lenders party thereto, and Wells Fargo Bank,
National Association, as Administrative Agent. Capitalized terms used but not
defined herein are used with the meanings set forth for those terms in the
Credit Agreement. Section references herein relate to the Credit Agreement
unless otherwise stated.

Borrower, the Administrative Agent and each of the Lenders
agree as follows:

    	Amendment to Definition of "Fixed Charges". The definition
    of "Fixed Charges" in Section 1.1 is amended and restated
    to read in full as follows:

"Fixed Charges" means, with respect to
    any fiscal period, the sum of (a) Interest Expense of
    Borrower and its Subsidiaries for such fiscal period plus
    (b) Rental Expense of Borrower and its Subsidiaries for such fiscal
    period plus (c) scheduled principal payments (or principal
    components, in the case of Capital Lease Obligations) paid or payable on
    Indebtedness of Borrower and its Subsidiaries during that fiscal period, other
    than the $2,500,000 Line B Commitment Amortization Amount paid on
    September 30, 2001.

    
    	New Defined Term. Section 1.1 is amended by adding the
    following definition in the appropriate alphabetical location:

"Permitted Insurance Premium Indebtedness"
    means Indebtedness incurred by Borrower or any of its Subsidiaries to
    finance payment of insurance premiums, provided that (a) the
    aggregate outstanding principal amount of such Indebtedness does not exceed
    $1,200,000 at any time, (b) such Indebtedness is incurred pursuant to
    (or is otherwise evidenced by) a written agreement between Borrower or such
    Subsidiary and a Person regularly engaged in the business of financing
    insurance premiums payable by corporate entities (each, a "Premium
    Finance Agreement"), (c) the scheduled tenor of any such
    Indebtedness from the date of its incurrence does not exceed twelve (12)
    months, and (d) if secured, the Lien securing any such Indebtedness is
    (i) expressly limited to the right, title and interest of Borrower or
    such Subsidiary in and to the applicable insurance policy (or policies) and
    any money that may at any time be due Borrower or such Subsidiary under such
    policy (or policies) (x) as a result of a loss that reduces the
    unearned premiums, (y) as a return of the premium for such policy (or
    policies) or (z) as a dividend which becomes payable to Borrower or
    such Subsidiary in connection with such policy (or policies) and
    (ii) by its terms (whether set forth in the Premium Finance Agreement
    or otherwise) expressly subject and subordinate to the interests (and Liens)
    of any applicable mortgagee of Borrower or such Subsidiary and/or the loss
    payee of such policy (or policies).

    
    	Amendment to Section 6.8 - Liens and Negative Pledges. Section 6.8(d)
    is amended and restated to read in full as follows:

      
        
          (d) Permitted Encumbrances and Liens arising in
          connection with Permitted Insurance Premium Indebtedness;

        

      

    

    
    	Amendment to Section 6.9 - Indebtedness and Guaranty Obligations.
    Section 6.9 is amended as follows:

          	Section 6.9(j) is amended by replacing the period at the
          end of such section with "and;".
	The following new Section 6.9(k) is added to the
            Credit Agreement:

      
        
          (k) Permitted Insurance Premium Indebtedness.

        

      

    

    
    	Conditions Precedent. The effectiveness of this Amendment shall be
    conditioned upon the receipt by the Administrative Agent of all of the
    following, each properly executed by an authorized officer of each party
    thereto and dated as of the date hereof:

(a) Counterparts of this Amendment executed by all
    parties hereto; and

    (b) Written consent of the Subsidiary Guarantors in the
    form of Exhibit A to this Amendment.

    
    	Confirmation. In all other respects, the terms of the Credit
    Agreement and the other Loan Documents are hereby confirmed.

[signature pages follow]

IN WITNESS WHEREOF, Borrower, the Administrative Agent and
the Lenders have executed this Amendment as of December 14, 2001 by their duly
authorized representatives.

  
    
      
        
          
            WILD OATS MARKETS, INC.

            

            By: /s/

            Freya R. Brier Vice President Legal

            WELLS FARGO BANK, NATIONAL

            ASSOCIATION, as Administrative Agent and a Lender

            By: /s/

            Ellen J. Trach

            Vice President

            BANK ONE, NA, as a Lender

            By: /s/

            Phillip D. Martin

            Senior Vice President

            COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK, B.A., "RABOBANK
            NEDERLAND", NEW YORK BRANCH, as a Lender

            

            

            By: /s/

            Ian Reece

            Managing Director

            

            

            By:   /s/

            John McMahon

            Vice President

            

            HARRIS TRUST & SAVINGS BANK, as a Lender

            By: /s/

            David C. Fisher

            Vice President

            KEYBANK NATIONAL ASSOCIATION, as a Lender

            By: /s/

            Michelle K. Bushey

            Vice President

            U.S. BANK NATIONAL ASSOCIATION,

            as a Lender

            By: /s/

            C. Kirk Dyche

            Vice President

            

            
              
                
                  
                     

                  

                

              

            

          

        

      

    

  

Exhibit A to Amendment No. 3

CONSENT OF SUBSIDIARY GUARANTORS

Reference is hereby made to that certain Amended and Restated
Credit Agreement dated as of August 1, 2000 among Wild Oats Markets, Inc.
("Borrower"), the Lenders party thereto, and Wells Fargo Bank,
National Association, as Administrative Agent (as heretofore amended, the
"Credit Agreement").

Each of the undersigned Subsidiary Guarantors hereby consents
to Amendment No. 3 to Amended and Restated Credit Agreement in the form
executed by Borrower and confirms that the Subsidiary Guaranty to which it is a
party remains in full force and effect.

Dated: As of December 14, 2001

"Subsidiary Guarantors"

WILD MARKS,
INC.                                        
SPARKY, INC.

By: /s/                                                                  
By: /s/

Melody
Pickett                                                    
Karen Novotny

President                                                             
Secretary

WILD OATS FINANCIAL,
INC.                     
WILD OATS OF TEXAS, INC.

By:   /s/                                                               
By:   /s/

Melody
Pickett                                                   
Richard Vara

President                                                            
Secretary

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