Document:

<PAGE>

November 14, 2003

CapitalSource Finance LLC
4445 Willard Avenue, 12th Floor
Chevy Chase, Maryland  20815

     RE:  Revolving Credit Facility and Term Loan (the "Loans") from
          CapitalSource Finance LLC ("Lender") to Opticare Health Systems, Inc.,
          a Delaware corporation, Opticare Eye Health Centers, Inc., a
          Connecticut corporation, Primevision Health, Inc., a Delaware
          corporation, and Opticare Acquisition Corporation, a New York
          corporation (collectively, "Borrower")

The undersigned, Palisade Concentrated Equity Partnership, L.P. ("Palisade") is
a substantial direct or indirect equity holder of Borrower. The Loans are
evidenced by that certain Amended and Restated Revolving Credit, Term Loan and
Security Agreement, dated January 25, 2002 (as the same has been and may
hereafter be amended, supplemented or modified from time to time, the "Loan
Agreement") by and between Lender and Borrower. Capitalized terms used but not
otherwise defined in this letter agreement are as defined in the Loan Agreement.

Palisade acknowledges and confirms that, as a direct and indirect owner of
Borrower that it will benefit from the advancement of funds, including the
Overadvances, under the Revolving Facility to Borrower.

In order to induce Lender to enter into the Loan Agreement and to consummate the
transactions contemplated thereby (including providing the Overadvances), and in
consideration therefore, the parties agree as follows:

Palisade agrees to guaranty due and punctual payment when due of all
Overadvances made pursuant to the Loan Agreement and the interest thereon and
any and all other monies and amounts due or which may become due on or with
respect to, in any case whether according to the present terms thereof, at any
earlier or accelerated date or dates or pursuant to any extension of time or to
any change in the terms, covenants, agreements and conditions thereof now or at
any time hereafter made or granted ("Palisade Obligations").

This letter agreement is a promise of payment of the Overadvances and not of
collection. If any Palisade Obligation is not satisfied when due, whether by
acceleration or otherwise, Palisade shall forthwith satisfy such Palisade
Obligation, upon demand, and no such satisfaction shall discharge the
obligations of the Palisade hereunder until all Palisade Obligations have been
indefeasibly paid in cash and performed and satisfied in full and Lender's
commitment to make Overadvances under the Loan Agreement has terminated.
Palisade's agreement to pay the Palisade Obligations under this letter agreement
shall be primary and direct and not conditional or contingent upon the
enforceability of any obligation, the solvency of Borrower or any other Person,
any obligation or circumstance which might otherwise constitute a legal or
equitable discharge or defense of a surety or guarantor or the pursuit by Lender
of any remedies it may have against Borrower or any other Palisade of the
Palisade Obligations or any other Person. Without limiting the generality of the
foregoing, Lender shall not be required to make any demand on Borrower or any
other Person or to sell at foreclosure or otherwise pursue or exhaust its
remedies against any Collateral of Borrower or any guarantor of the Palisade
Obligations or any other

<PAGE>

Person before, simultaneously with or after enforcing its rights and remedies
hereunder against Palisade, and any one or more successive and/or concurrent
actions may be brought against Palisade in the same action brought against
Borrower or any other Person of the Palisade Obligations or in separate actions,
as often as Lender may deem advisable, in its sole discretion. The obligations
of Palisade hereunder shall not in any way be affected by any action taken or
not taken by Lender.

Palisade hereby represents and warrants to Lender that Palisade has all
requisite power and authority (i) to execute, deliver and perform its
obligations under this letter agreement and (ii) to consummate the transactions
contemplated hereunder, and Palisade is under no legal restriction, limitation
or disability that would prevent it from doing any of the foregoing.

Palisade hereby waives demand, setoff, counterclaim, presentment, protest,
notice of dishonor or non-payment, as well as all defenses with respect to any
and all instruments, notice of acceptance hereof, notice of Loans or Advances
made, credit extended, collateral received or delivered, or any other action
taken by Lender in reliance hereon, and all other demands and notices of any
description, except such as are expressly provided for herein, it being the
intention hereof that Palisade shall remain liable as a principal until the full
amount of all Palisade Obligations shall have been indefeasibly paid in full in
cash and performed and satisfied in full and the Loan Agreement terminated,
notwithstanding any act, omission, or anything else which might otherwise
operate as a legal or equitable discharge of Palisade.

Palisade acknowledges and agrees that its obligations as Palisade shall not be
impaired, modified, changed, released or limited in any manner whatsoever by any
impairment, modification, change, release or limitation of the liability of
Borrower or any other surety or guarantor of the Palisade Obligations or any
other Person or its estate in bankruptcy resulting from the operation of any
present or future provision of the bankruptcy laws or other similar statute, or
from the decision of any court.

Palisade acknowledges and agrees that Lender shall have the full right and
power, in its sole discretion and without any notice to or consent from Palisade
and without affecting or discharging, in whole or in part, the liability of
Palisade hereunder to deal in any manner with the Palisade Obligations and any
security or guaranties therefor, including, without limitation, to (A) release,
extend, renew, accelerate, compromise or substitute and administer the Palisade
Obligations and other obligations under the Loan Documents in any manner it sees
fit, (B) release any or all collateral for the Palisade Obligations, (C) release
any guarantor of the Palisade Obligations, (D) extend the time for payment of
the Palisade Obligations or any part thereof, (E) change the interest rate on
the Palisade Obligations or any Note under the Loan Agreement, (F) reduce or
increase the outstanding principal amount of the Palisade Obligations or any
Note under the Loan Agreement, (G) accelerate the Palisade Obligations, (H) make
any change, amendment or modification whatsoever to the terms or conditions of
the Loan Documents, (I) extend, in whole or in part, on one or any number of
occasions, the time for the payment of any principal or interest or any other
amount pursuant to any Note or for the performance of any term or condition of
the Loan Documents, (J) settle, compromise, release, substitute, impair, enforce
or exercise, or fail or refuse to enforce or exercise, any claims, rights, or
remedies, of any kind or nature, which Lender may at any time have against
Borrower or any other guarantor of the Palisade Obligations or any other Person,
or with respect to any security interest of any kind held by Lender at any time,
whether under any Loan Document or otherwise, (K) release or substitute any
security interest of any kind held by Lender at any time, (L) collect and retain
or liquidate any collateral subject to such security interest, (M) make advances
for the purpose of performing any term or covenant contained in the Loan
Documents with respect to which the Borrower or any other guarantor of the
Palisade Obligations is in default, (N) foreclose on any of the Collateral, (O)
grant waivers or indulgences, (P) take additional collateral, (Q) obtain any
additional guarantors, (R) take a deed in lieu of foreclosure and/or (S) take or
fail to take any other action whatsoever with respect to the Palisade
Obligations. Palisade hereby waives and agrees not to assert

                                      -2-

<PAGE>

against Lender any rights which a guarantor or surety could exercise.
Notwithstanding any other provision of this letter agreement, Palisade agrees
that Lender has no duties of any nature whatsoever to Palisade, whether express
or implied, by virtue of this letter agreement or any other Loan Document,
operation of law or otherwise.

Palisade agrees that its obligations hereunder are irrevocable, joint and
several and independent of the obligations of Borrower or any other guarantor of
the Palisade Obligations or any other Person.

Palisade agrees that it shall have no right of subrogation whatever with respect
to the Palisade Obligations or to any collateral securing such Palisade
Obligations unless and until such Palisade Obligations have been irrevocably and
indefeasibly paid in full in cash and performed in full and the Loan Agreement
has terminated.

Palisade agrees that this letter agreement shall inure to the benefit of, and
may be enforced by, Lender, all future holders of any Note or any of the
Palisade Obligations and each of their respective successors and permitted
assigns, and shall be binding upon and enforceable against Palisade and
Palisade's assigns and successors. Palisade agrees that it may not assign,
delegate or transfer this letter agreement or any of its rights or obligations
under this letter agreement without the prior written consent of Lender.

No course of action or delay, renewal or extension of this letter agreement or
any rights or obligations hereunder, release of Palisade or any of the
foregoing, or delay, failure or omission on Lender's part in enforcing this
letter agreement, or any other Loan Document or in exercising any right, remedy,
option or power hereunder or thereunder shall affect the liability of Palisade
or operate as a waiver of such or of any other right, remedy, power or option or
of any default, nor shall any single or partial exercise of any right, remedy,
option or power hereunder or thereunder affect the liability of Palisade or
preclude any other or further exercise of such or any other right, remedy, power
or option. No waiver by Lender of any one or more defaults by Palisade in the
performance of any of the provisions of this letter agreement shall operate or
be construed as a waiver of any future default or defaults, whether of a like or
different nature.

If any term or provision of this letter agreement is adjudicated to be invalid
under applicable laws or regulations, such provision shall be inapplicable to
the extent of such invalidity or unenforceability without affecting the validity
or enforceability of, the remainder of this Guaranty which shall be given effect
so far as possible.

This letter agreement shall be effective on the date hereof and shall continue
in full force and effect until full performance and indefeasible payment in full
in cash of all Palisade Obligations and termination of Lender's obligations to
make Overadvances under the Loan Agreement, all in accordance with the Loan
Agreement, and the rights and powers granted to Lender hereunder shall continue
in full force and effect notwithstanding the termination of this letter
agreement or the fact that Borrower's borrowings under the Loan Agreement may
from time to time be temporarily in a zero or credit position until all of the
Palisade Obligations have been indefeasibly paid in full in cash and performed
and satisfied in full.

This letter agreement shall be governed by and construed in accordance with the
internal laws of the State of New York without giving effect to its choice of
law provisions.

This letter agreement may be executed in one or more counterparts, all of which
taken together shall constitute one and the same instrument.

Palisade agrees to treat this letter agreement and all other Loan Documents and
all provisions thereof confidentially and not to transmit any copy hereof or
thereof or disclose the contents hereof or thereof, in whole or in part, to any
Person (including, without limitation, any financial institution or
intermediary)

                                      -3-

<PAGE>

without Lender's prior written consent, other than to Palisade's advisors and
officers on a need-to-know basis.

                          PALISADE CONCENTRATED EQUITY PARTNERSHIP, L.P.

                          By:  Palisade Concentrated Holdings, LLC, its
                          general partner

                             By:   /s/ Eric J. Bertrand
                                   ----------------------------
                             Name: Eric J. Bertrand
                                   ----------------------------
                             Its:  Member
                                   ----------------------------

                          ADDRESS:

                              1 Bridge Plaza
                              --------------------------------------
                              Fort Lee, NJ 07024
                              --------------------------------------

ACKNOWLEDGED AND AGREED TO BY:

CAPITALSOURCE FINANCE LLC,
a Delaware limited liability company

By:   /s/ Keith D. Reuben
      -----------------------------
Name: Keith D. Reuben
      -----------------------------
Its:  Director
      -----------------------------

OPTICARE HEALTH SYSTEMS, INC.,
a Delaware corporation

By:   /s/ Dean J. Yimoyines
      -----------------------------
Name: Dean J. Yimoyines
      -----------------------------
Its:  Chief Executive Officer
      -----------------------------

PRIMEVISION HEALTH, INC.,
a Delaware corporation

By:   /s/ Dean J. Yimoyines
      -----------------------------
Name: Dean J. Yimoyines
      -----------------------------
Its:  President
      -----------------------------

                                      -4-

<PAGE>

OPTICARE EYE HEALTH CENTERS, INC.,
a Connecticut corporation

By:   /s/ Dean J. Yimoyines
      -----------------------------
Name: Dean J. Yimoyines
      -----------------------------
Its:  President
      -----------------------------

OPTICARE ACQUISTION CORP.

By:   /s/ Dean J. Yimoyines
      -----------------------------
Name: Dean J. Yimoyines
      -----------------------------
Its:  President
      -----------------------------

                                      -5-<PAGE>
                                                                     EXHIBIT 4.2

                               FIRST AMENDMENT TO
                                MASTER INDENTURE
                       (FIRST NATIONAL MASTER NOTE TRUST)

         THIS FIRST AMENDMENT TO MASTER INDENTURE, dated as of November 17, 2003
(this "Amendment") is made between FIRST NATIONAL MASTER NOTE TRUST, a statutory
trust organized under the laws of the State of Delaware ("Issuer") and THE BANK
OF NEW YORK, a New York banking corporation, as Indenture Trustee ("Indenture
Trustee"). Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned thereto in the Master Indenture (as defined below).

                                R E C I T A L S :

         A.       Issuer and Indenture Trustee are parties to that certain
Master Indenture, dated as of October 24, 2002 (the "Master Indenture").

         B.       Issuer wishes to amend the Master Indenture in certain
respects as set forth herein and has provided an Issuer Order authorizing such
amendments to Indenture Trustee as contemplated by Section 10.01(a) of the
Master Indenture.

         NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

         SECTION 1. AMENDMENTS.

                  (a)      Section 4.01 of the Master Indenture is hereby
         amended and restated to read in its entirety as follows:

                  "SECTION 4.01 SATISFACTION AND DISCHARGE OF THE INDENTURE. The
         Indenture shall cease to be of further effect with respect to the Notes
         except as to (a) rights of registration of transfer and exchange, (b)
         substitution of mutilated, destroyed, lost or stolen Notes, (c) the
         rights of Noteholders to receive payments of principal thereof and
         interest thereon, (d) Sections 3.03, 3.07, 3.08, 3.11, 3.12 and 12.16,
         (e) the rights and immunities of Indenture Trustee hereunder, including
         the rights of Indenture Trustee under Section 6.07, and the obligations
         of Indenture Trustee under Section 4.02, and (f) the rights of
         Noteholders as beneficiaries hereof with respect to the property so
         deposited with Indenture Trustee and payable to all or any of them, and
         Indenture Trustee, at the expense of Issuer and on written demand of,
         or on behalf of, Issuer, shall execute proper instruments acknowledging
         satisfaction and discharge of the Indenture with respect to the Notes
         when:

<PAGE>

                           (i)      either

                                    (A)      all Notes theretofore authenticated
                           and delivered (other than (1) Notes which have been
                           destroyed, lost or stolen and which have been
                           replaced, or paid as provided in Section 2.06, and
                           (2) Notes for whose full payment Servicer or
                           Transferor, on behalf of Issuer, has theretofore
                           deposited money in trust, which money has thereafter
                           been repaid to Issuer or discharged from such trust,
                           as provided in Section 3.03) have been delivered to
                           Indenture Trustee for cancellation; or

                                    (B)      all Notes not theretofore delivered
                           to Indenture Trustee for cancellation:

                                             (1)     have become due and
                                    payable; or

                                             (2)     will become due and
                                    payable at the Series Termination Date for
                                    such Class or Series of Notes; or

                                             (3)     are to be called for
                                    redemption within one year under
                                    arrangements satisfactory to Indenture
                                    Trustee for the giving of notice of
                                    redemption by Indenture Trustee in the name,
                                    and at the expense, of Issuer; and

                                             (4)     Transferor or Servicer, in
                                    the case of (1), (2) or (3) above, has
                                    irrevocably deposited or caused to be
                                    irrevocably deposited with Indenture Trustee
                                    cash or direct obligations of or obligations
                                    guaranteed by the United States of America
                                    (which will mature prior to the date such
                                    amounts are payable), in trust for such
                                    purpose, in an amount sufficient to pay and
                                    discharge the entire indebtedness on such
                                    Notes not theretofore delivered to Indenture
                                    Trustee for cancellation when due at the
                                    Series Termination Date for such Class or
                                    Series of Notes or the Redemption Date (if
                                    Notes shall have been called for redemption
                                    pursuant to the related Indenture
                                    Supplement), as the case may be;

                           (ii)     Issuer has paid or caused to be paid all
                  other sums payable hereunder by Issuer; and

                           (iii)    Issuer has delivered or caused to be
                  delivered to Indenture Trustee an Officer's Certificate, an
                  Opinion of Counsel and (if required by the TIA or Indenture
                  Trustee) an Independent Certificate from a firm of certified
                  public accountants, each meeting the applicable requirements
                  of Section 12.01(a) and each stating that all conditions
                  precedent herein provided for relating to the satisfaction and
                  discharge of the Indenture have been complied with.

                                        2

<PAGE>

                  Notwithstanding the satisfaction and discharge of the
                  Indenture, the obligations of Issuer and Servicer to Indenture
                  Trustee under Section 6.07 and of Indenture Trustee to the
                  Noteholders under Section 4.02 shall survive such satisfaction
                  and discharge(c)."

                  (b)      Section 12.13 of the Indenture is hereby amended by
         deleting the word "CONFLICT" in the second line and changing the word
         "CHOICE" to "CONFLICT" in the third line.

         SECTION 2. EFFECTIVENESS. The amendments set forth in Section 1 shall
become effective as of November 17, 2003, upon execution of this Amendment by
each of the parties hereto and satisfaction of each other condition precedent
specified in Section 10.01 of the Master Indenture to the effectiveness of any
amendment to the Master Indenture.

         SECTION 3. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEBRASKA WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

         SECTION 4. SEVERABILITY. Each provision of this Amendment shall be
severable from every other provision of this Amendment for the purpose of
determining the legal enforceability of any provision hereof, and the
unenforceability of any provision hereof, and the unenforceability of one or
more provisions of this Amendment in one jurisdiction shall not have the effect
of rendering such provision or provisions unenforceable in any other
jurisdiction.

         SECTION 5. RATIFICATION OF THE MASTER INDENTURE. From and after the
date hereof, each reference in the Master Indenture to the "Indenture," "this
Indenture," "hereunder," "hereof," "herein" or words of like import, and
references to the Master Indenture in any other document, instrument or
agreement executed and/or delivered in connection therewith, shall, in each
case, mean and be a reference to the Master Indenture as amended hereby. Except
as specifically amended by this Amendment, the Master Indenture shall continue
in full force and effect and is hereby ratified and confirmed.

         SECTION 6. COUNTERPARTS. This Amendment may be executed in one or more
counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.

         SECTION 7. LIMITATION OF LIABILITY. Notwithstanding any other provision
herein or elsewhere, this Amendment has been executed and delivered by
Wilmington Trust Company, not in its individual capacity, but solely in its
capacity as Owner Trustee of Issuer, in no event shall Wilmington Trust Company,
in its individual capacity, have any liability in respect of the
representations, warranties, or obligations of Issuer hereunder or under any
other document, as to all of which recourse shall be had solely to the assets of
Issuer, and for all purposes of this Agreement and each other document, Owner
Trustee (as such or in its individual capacity) shall be subject to, and
entitled to the benefits of, the terms and provisions of the Trust Agreement.

                                       3

<PAGE>

                                                                     EXHIBIT 4.2

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their respective duly authorized officers as of the date and
year first written above.

                                      FIRST NATIONAL MASTER NOTE TRUST,
                                      as Issuer

                                      By Wilmington Trust Company, not in its
                                         individual capacity, but solely as
                                         Owner Trustee

                                      By /s/ Janel R. Havrilla
                                         ---------------------------------------
                                      Name Janel R. Havrilla
                                      Title Financial Services Officer

                                      THE BANK OF NEW YORK, as Indenture Trustee

                                      By /s/ Mary L. Collier
                                         ---------------------------------------
                                         Name Mary L. Collier
                                         Title Agent

Acknowledged and Accepted:

FIRST NATIONAL FUNDING LLC, as Transferor

By First National Funding Corporation,
     its Managing Member

By /s/ Jean L. Koenck
   --------------------------------------
Name Jean L. Koenck
Title Senior Vice President

FIRST NATIONAL BANK OF OMAHA,
as Servicer

By /s/ Jean L. Koenck
   -------------------------------------
Name Jean L. Koenck
Title Vice President

                               FIRST AMENDMENT TO
                         MASTER INDENTURE SIGNATURE PAGE

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