Document:

Exhibit

10.4

 

AMENDMENT

NO. 4 TO CREDIT AGREEMENT

 

 

                AMENDMENT NO. 4 TO AMENDED AND RESTATED

CREDIT AGREEMENT (this “Amendment”) is effective as of October 31,

2002, by and among HAUSER, INC., a Delaware corporation (the

“Company”), HAUSER TECHNICAL SERVICES, INC., a Delaware corporation, BOTANICALS

INTERNATIONAL EXTRACTS, INC., a Delaware corporation, and ZETAPHARM,

INC., a New York 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 Amended and Restated Credit Agreement dated as of

December 7, 2001 (the “Current Agreement”; as amended hereby and from time to

time, the “Agreement”); and

                                WHEREAS,

the Lender and the Borrowers have agreed to certain changes in the terms and

conditions set forth in the Current Agreement and have agreed to amend the

Current 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 Current

Agreement shall be amended as follows:

A.            Amendments.

1.     In Section 1.01 of the

Current Agreement, the defined term “Commitment” is amended by replacing the

dollar amount “$10,000,000” with the dollar amount “$9,000,000”.

2.     In Section 1.01 of the

Current Agreement, the defined term “Revolving Credit Commitment” is amended by

replacing the dollar amount “$10,000,000” with the dollar amount “$9,000,000”.

3.     In Section 1.01 of the

Current Agreement, the defined term “Revolving Credit Facility Availability

Period” is amended by replacing the phrase “October 31, 2002” with the phrase

“November 30, 2002”.

4.     In Section 1.01 of the

Current Agreement, the definition following the defined term “Maturity Date”

shall be deleted in full and replaced with the following:

“in the case of

the Revolving Loan, means November 30, 2002, and in the case of the Term Loan,

means September 10, 2002.”

5.  Section 2.06 of the Current Agreement is

amended by replacing the phrase “October 31, 2002” with the phrase “November

30, 2002”.

B.            Effectiveness; Conditions.  Borrowers shall have delivered to Lender a

duly executed Revolving Credit Note substantially in the form attached hereto

as Exhibit A (the “Revolving Credit Note”), which Revolving Credit Note

will supersede and replace the existing Revolving Credit Note, dated October 3,

2002.

C.            Covenants.  Borrowers hereby (i) covenant to pay or

reimburse the Lender for all of the Lender’s costs and expenses, including 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 Amendment; and (ii) acknowledge and agree that a failure to immediately

do so will constitute an Event of Default under the Agreement without further

notice or other act of the Lender.

D.            General.

1.             Except as specifically provided

herein, all terms and conditions of the Agreement remain in full force and

effect, without waiver or modification. 

Borrowers acknowledge that except as specifically provided in this

Amendment, nothing in this Amendment shall affect Borrowers’ obligations under

the Agreement, which obligations remain valid, binding and enforceable, or

shall constitute a waiver by Lender of any of Lender’s rights or remedies, now

or at any time in the future, with respect to any requirement under the

Agreement or with respect to an Event of Default or Default, occurring now or

at any time in the future.

2.             All terms defined in the Agreement

shall have the same meaning when used in this Amendment.  This Amendment and the Agreement shall be

read together as one document. This Amendment may be executed in counterparts

(and by different parties hereto on different counterparts), each of which

shall constitute an original, but all of which when taken together shall

constitute a single document.

3.             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.

 

[INTENTIONALLY LEFT BLANK]

2

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 C. Cleveland

  	

   

  	

  By:

  	

  /s/  Art Brokx

  	

   

  
	

  Name:  Kenneth C. Cleveland

  	

  Name:  Art Brokx

  
	

  Title:  President

  	

  Title:  Vice President

  
	

  

  

  	

   

  
	

  HAUSER TECHNICAL SERVICES,

  INC.

  

  	

   

  
	

  By:

  	

  /s/  Thomas W. Hanlon

  	

   

  
	

  Name:  Thomas W. Hanlon

  
	

  Title:  Secretary and Treasurer

  
	

  

  

  	

   

  
	

  BOTANICALS INTERNATIONAL EXTRACTS, INC.

   

   

  	

   

  
	

  By:

  	

  /s/  Kenneth C. Cleveland

  	

   

  
	

  Name:  Kenneth C. Cleveland

  
	

  Title:  Chief Executive Officer

  
	

  

  

  	

   

  
	

  ZETAPHARM, INC.

   

   

  	

   

  
	

  By:

  	

  /s/  Thomas W. Hanlon

  	

   

  
	

  Name:  Thomas W. Hanlon

  
	

  Title:  Secretary and Treasurer

  

 

3

EXHIBIT A

 

REVOLVING CREDIT NOTE

(follows this page)Exhibit 10.6

REVOLVING CREDIT

NOTE

	

  $9,000,000

  	

   

  	

  Los

  Angeles, California

  
	

   

  	

   

  	

  October

  31, 2002

  

 

                FOR VALUE RECEIVED, the

undersigned, HAUSER, INC., a Delaware corporation, HAUSER TECHNICAL SERVICES,

INC., a Delaware Corporation, BOTANICALS INTERNATIONAL EXTRACTS, INC., a

Delaware corporation, ZETAPHARM, INC., a New York corporation, (collectively,

the “Borrowers”), hereby jointly and severally, unconditionally promise to pay

to the order of Wells Fargo Bank, National Association (the “Lender”), at c/o

Wells Fargo Bank, N.A., 333 South Grand Avenue, 9th Floor, Los Angeles,

California 90071, or at such other place as the holder of this Note may direct,

on November 7, 2002 (the “Maturity Date”) in lawful money of the United States

of America and in immediately available funds, the principal amount of (a) NINE

MILLION DOLLARS ($9,000,000), or (b) such other amount as represents the

aggregate unpaid principal amount of all Revolving Loans made by the Lender

pursuant to the Credit Agreement (referred to below).  The Borrowers further agree, jointly and severally, to pay

interest on the unpaid principal amount outstanding hereunder from time to time

from the date hereof in like money at such office at a rate per annum equal to

the Prime Rate plus a margin of four percent (4%).  Interest shall accrue hereunder from the date of each advance

until the date of payment, shall be calculated on the basis of a year of three

hundred sixty (360) days and shall be payable for the actual number of days

elapsed (including the first day but excluding the last day).  Interest shall be payable in arrears on the

last day of each calendar month and on the Maturity Date.  In the event of any repayment or prepayment

of any Loan, other than a prepayment prior to the Maturity Date, accrued interest

on the principal amount repaid or prepaid shall be payable on the date of such

repayment or prepayment.

                If any principal of or interest

on any Loan or any fee or other amount payable by the Borrowers hereunder or

under the Credit Agreement is not paid when due, whether at stated maturity,

upon acceleration or otherwise, such overdue amount shall bear interest, after

as well as before judgment, at a rate per annum equal to (i) in the case of

overdue principal of any Loan, two percent (2%) plus the rate otherwise

applicable to such Loan as provided above in this Note, or (ii) in the case of

any other amount, the rate that would apply under (i) of this paragraph if such

amount constituted overdue principal.

                The

holder of this Note is authorized to record on Schedule 1 annexed hereto or on

a continuation thereof the date, Type and amount of each Revolving Loan made

pursuant to the Credit Agreement, the date and amount of each payment or

repayment of principal

 

 

thereof;

provided, however, that the failure to make any such recordation shall not

affect the obligations of the Borrowers in respect of such Revolving Loans.

                This Note amends, restates and

replaces the Revolving Credit Note previously issued by Borrowers and referred

to in the Amended and Restated Credit Agreement by and between the Borrowers

and the Lender dated as of December 7, 2001, as amended (the “Credit

Agreement”), is secured as provided therein and in the Security Documents and

is subject to optional and mandatory prepayment as set forth in the Credit

Agreement.

                Upon the occurrence of any one

or more of the Events of Default specified in the Credit Agreement, all amounts

then remaining unpaid on this Note shall become, or may be declared to be,

immediately due and payable, all as provided in the Credit Agreement.

                All parties now and hereafter

liable with respect to this Note, whether maker, principal, surety, guarantor,

endorser or otherwise, hereby waive presentment, demand, protest and all other

notices of any kind.

                The holder of this Note is

authorized from time to time to debit any accounts maintained by any Borrower

with such holder for any and all amounts payable by the Borrowers hereunder.

                Terms defined in the Credit

Agreement are used herein with their defined meanings unless otherwise defined

herein.  This Note shall be governed by,

and construed and interpreted in accordance with, the laws of the State of

California.

                This Note may be executed in

counterparts (and by different parties hereto on different counterparts), each of

which shall constitute an original, but all of which when taken together shall

constitute a single contract.

                                IN WITNESS WHEREOF, the

parties hereto have caused this Revolving Credit Note to be duly executed by

their respective authorized officers as of the day and year first above

written.

 

HAUSER, INC.

	

  By:

  	

  /s/  Thomas W. Hanlon

  
	

   Name:  Thomas W. Hanlon

  
	

   Title:  Chief Financial

  Officer

  

 

HAUSER TECHNICAL SERVICES, INC.

	

  By:

  	

  /s/  Thomas W. Hanlon

  
	

   Name:  Thomas W. Hanlon

  
	

   Title:  Secretary and Treasurer

  

 

BOTANICALS

INTERNATIONAL EXTRACTS, INC.

	

  By:

  	

  /s/  Thomas W. Hanlon

  
	

   Name:  Thomas W. Hanlon

  
	

   Title:  Chief Financial

  Officer

  

 

ZETAPHARM, INC.

	

  By:

  	

  /s/  Thomas W. Hanlon

  
	

  Name:  Thomas W. Hanlon

  
	

  Title:  Secretary and Treasurer

  

 

	

  SCHEDULE

  1

  
	

  TO

  REVOLVING CREDIT NOTE

  

 

LOANS

AND PAYMENTS OF REVOLVING LOAN

 

	

  Date

  	

  Amount

  of Loans

  	

  Amount

  of Principal Repaid

  	

  Unpaid

  Principal Balance of Loans

  	

  Notation

  Made By

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