Document:

AMENDMENT NO. 2 TO CREDIT AGREEMENT
                       -----------------------------------

     AMENDMENT NO. 2 TO AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment")
is effective as of August 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 "$10,750,000" with the dollar amount
"$9,500,000".

     2. 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 October 31, 2002, and in the case
     of the Term Loan, means September 10, 2002."

     3. In Section 1.01 of the Current Agreement, the defined term "Revolving
Credit Commitment" is amended by replacing the dollar amount "$10,750,000" with
the dollar amount "$9,500,000".

     4. In Section 1.01 of the Current Agreement, the defined term "Revolving
Credit Facility Availability Period" is amended by replacing the phrase "August
31, 2002" with the phrase "October 31, 2002".

<PAGE>

     5. Section 2.06 of the Current Agreement is amended by replacing the phrase
"August 31, 2002" with the phrase "October 31, 2002".

     6. Section 2.10(a) of the Current Agreement shall be deleted in its
entirety and replaced with the following:

     (a) The Loans shall bear interest as follows:

          (i) Term Loan Borrowings shall bear interest at a rate equal to the
     Prime Rate plus a margin of three percent (3.00%) through August 31, 2002
     and at a rate equal to the Prime Rate plus a margin of five percent (5.00%)
     beginning on September 1, 2002; and

          (ii) Revolving Loan Borrowings shall bear interest at a rate equal to
     the Prime Rate plus a margin of two percent (2.00%) through August 31, 2002
     and at a rate equal to the Prime Rate plus a margin of four percent (4.00%)
     beginning on September 1, 2002.

     7. Section 6.07(a) of the Current Agreement shall be deleted in its
entirety and replaced with the following:

     "The Borrowers shall not permit the Consolidated Tangible Net Worth (i) at
     the end of the fiscal quarter of the Company ending December 31, 2001 to be
     less than $2,400,000; at the end of the fiscal quarter of the Company
     ending March 31, 2002 to be less than $2,300,000; and at the end of the
     month ending August 31, 2002 to be less than $1,900,000".

     B. General. Except as specifically provided herein, all terms and
conditions of the Agreement 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 Borrowers 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.

                           [INTENTIONALLY LEFT BLANK]

                                       2

<PAGE>

     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 TreasurerTERM NOTE

$486,770                                                 Los Angeles, California
                                                                 August 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 HSBC Trade Bank, N.A., 333 South
Grand Avenue, 8th Floor, Los Angeles, California 90071, or at such other place
as the holder of this Note may direct, (i) on each of December 31, 2001, January
31, 2002, February 28, 2002, March 31, 2002, April 30, 2002, May 31, 2002, June
30, 2002, and July 31, 2002, the principal sum of TWENTY THOUSAND DOLLARS
($20,000); and (ii) on September 10, 2002 (the "Maturity Date") the principal
amount of FOUR HUNDRED EIGHTY SIX THOUSAND SEVEN HUNDRED SEVENTY DOLLARS
($486,770) or such other amount as represents the aggregate unpaid principal
amount of the Term Loan made by the Lender pursuant to the Credit Agreement, in
each case in lawful money of the United States of America and in immediately
available funds. 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 at a rate per annum equal
to the Prime Rate plus a margin of three percent (3%) through the period ending
August 31, 2002 and a rate per annum equal to the Prime Rate plus a margin of
five percent (5%) for the period beginning September 1, 2002. 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). In the event of any repayment or prepayment of any
Loan, 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 two percent (2%) plus the rate provided above in this Note.

     This Note amends, restates and replaces the Term Note previously issued by
Borrower and referred to in the Amended and Restated Credit Agreement by and
between

<PAGE>

the Borrower and the Lender dated as of June 25, 2002, 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.

     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.

     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.

     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.

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Term 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

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