Document:

EXHIBIT 10.1

                         CITIZENS BANK OF MASSACHUSETTS
                                 28 State Street
                                Boston, MA 02109

                                December 11, 2001

Mr. Bradford Walker
PrimeSource Surgical, Inc.
Bimeco, Inc.
Ruby Merger Sub, Inc.
3700 E. Columbia Street
Tucson, AZ  85714

Mr. Bradford Walker
PrimeSource Healthcare, Inc.
f/k/a Luxtec Corporation
99 Hartwell Street
West Boylston, MA 01583

          Re: Outstanding Obligations to Citizens Bank of Massachusetts

Dear Mr. Walker:

     Reference is made to (i) an Amended and Restated Credit  Agreement dated as
of June 14,  1999,  as amended by that  certain  First  Amendment to Amended and
Restated  Credit  Agreement  dated as of August 22, 2000, as further  amended by
that certain Second  Amendment to Amended and Restated Credit Agreement dated as
of December 28, 2000 and as further  amended by that certain Third  Amendment to
Amended and  Restated  Credit  Agreement  dated as of March 2, 2001 (the "Credit
Agreement"),  by and among  Citizens  Bank of  Massachusetts  (the  "Bank"),  as
lender, PrimeSource Surgical, Inc., a Delaware corporation (the "Borrower"),  as
borrower, and Bimeco, Inc., a Florida corporation  ("Bimeco"),  Ruby Merger Sub,
Inc.,  a  Delaware  corporation  ("Ruby")  and  Luxtec  Corporation,  a Delaware
corporation  ("Luxtec"  and together  with the  Borrower,  Bimeco and Ruby,  the
"Obligors"),  as guarantors;  (ii)  $5,000,000  Second Amended and Restated Term
Note dated  December  28,  2000  issued by the  Borrower  to the Bank (the "Term
Note");  (iii)  $12,000,000  Second Amended and Restated  Revolving  Credit Note
dated  December  28,  2000 issued by the  Borrower  to the Bank (the  "Revolving
Credit Note" and together with the Term Note,  the  "Notes");  (iv) the Guaranty
Agreement dated as of June 14, 1999 made by Bimeco in favor of the Bank; (v) the
Guaranty  Agreement  dated as of December  28, 2000 made by Ruby in favor of the
Bank;  (vi) the  Limited  Guaranty  dated as of March 2,  2001 made by Luxtec in
favor of the Bank;  (vii) the Parent Pledge  Agreement dated as of March 2, 2001
made by  Luxtec  in favor  of the  Bank  and  (viii)  all  other  documents  and
instruments related to the foregoing, including, without limitation, the "Credit
Documents."  The  above  documents  together  with  all  related  documents  are
collectively referred to as the "Loan Documents".  Capitalized terms used herein
and not otherwise defined shall have the meanings ascribed to them in the Credit
Agreement.

<PAGE>
December 10, 2001
Page 2

     The Obligors  have  informed the Bank that Events of Defaults have occurred
under the Loan  Documents  as a result of the failure of the Borrower to observe
the  covenants  listed on the  attached  Schedule A [Company  to  prepare] as of
                                         ----------
November    ,  2001  (the  "Designated   Events  of  Defaults").   The  Obligors
          --
acknowledge  the  materiality  of  these  Designated  Events  of  Defaults,  and
acknowledge receipt of any notice of such Designated Events of Defaults required
by the Loan Documents.  Furthermore, the Obligors acknowledge that, subject only
to the  temporary  effect  of the  forbearance  described  herein,  there are no
defenses to the Bank's right to exercise immediately,  or at any time hereafter,
any and all rights and remedies  granted to the Bank by the Loan Documents or by
operation  of law, as a result of the  occurrence  of such  Designated  Event of
Defaults.

     Based on the  foregoing and various  negotiations  between the Obligors and
the Bank, and for good and valuable  consideration,  the receipt and sufficiency
of which are hereby  acknowledged,  the Obligors,  jointly and  severally,  have
agreed to the terms set forth below.

     A.   Acknowledgment of Debt. Due to the occurrence of the aforementioned
          ----------------------
Designated  Events of Defaults,  each Obligor  acknowledges  and agrees that the
Bank has no obligation to make further loans to the Borrower,  provided the Bank
agrees to provide  funding subject to the terms and conditions set forth herein.
The unpaid principal balance of the Notes is as follows (not including interest,
costs and expenses):

          Revolving Loan Principal (as of December 11, 2001)       $6,908,463.38

          Term Loan Principal (as of December 11, 2001)            $2,499,992.00

                          TOTAL                                    $9,408,455.38

     (The above  figures do not include  amounts  (or other costs and  expenses)
that have accrued from the date indicated above.)

     B.   Validity of Documents. The Obligors acknowledge and agree that:
          ---------------------

     (a)  the liabilities and obligations  arising out of the Loan Documents are
          valid obligations of the parties thereto;

     (b)  the liabilities and obligations  arising out of the Loan Documents (to
          the extent set forth  therein)  are joint and several  obligations  of
          each Obligor;

     (c)  the liens and security  interests  granted to the Bank pursuant to the
          Loan Documents remain valid, perfected and enforceable; and

     (d)  except to the extent that the Bank has  expressly  agreed to limit its
          rights under this Letter  Agreement,  the Bank may enforce the payment

<PAGE>
December 10, 2001
Page 3

          of the  liabilities  and the  performance  of the  obligations  of the
          Obligors  as set  forth  in the  Loan  Documents  and as  provided  by
          applicable  law. All rights and remedies  available to the Bank either
          under the Loan Documents, at law or in equity, are preserved except as
          expressly waived herein.

     C.   Advances  during  Forbearance  Period.  Notwithstanding  any  contrary
          -------------------------------------
provision herein or in the Loan Documents, (i) the amounts drawn under the Notes
shall be at the reasonable discretion of the Bank and (ii) the Maximum Revolving
Credit shall be deemed permanently reduced to $9,500,000.

     D.   LIBOR Rate  Loans.  The  Borrower  shall not be entitled to LIBOR Rate
          -----------------
Loans for any advances under the Loan Documents.

     E.   Financial Advisor. The Bank shall have the right to engage a financial
          -----------------
consultant,  at the  Obligors'  expense,  to review and  monitor  the  financial
condition of the Obligors.  The scope of the  consultant's  work shall be at the
Bank's discretion. Each Obligor agrees to cooperate fully with the consultant in
providing information and access to personnel.

     F.   Weekly Borrowing Base Certificate. Until all of the obligations of the
          ---------------------------------
Borrower to the Bank have been paid in full in cash (whether before or after the
Deferral Period (as defined  below),  the Borrower shall furnish to the Bank not
later than two (2) business  days  following  the end of each weekly  accounting
period a Borrowing Base Certificate completed and signed by the Borrower's Chief
Financial Officer or Chief Restructuring Officer.

     G.   Suspension of Principal Payments.  The Bank hereby agrees to defer the
          --------------------------------
obligation of any Obligors,  as applicable to make principal  payments under the
Term Note from the date hereof until January 18, 2002 (the  "Deferral  Period").
The  aforementioned  deferral of  principal  payments due under the Term Note is
expressly  limited to the Deferral  Period and is not intended to be a waiver of
any such  principal  payments.  In addition,  the forgoing in no way relieves or
limits such Obligors'  obligation to pay to the Bank accrued and unpaid interest
outstanding  now or during the term hereof,  related costs and expenses or other
obligations (other than principal described above) due under the Loan Documents.

     H.   Events of Default: The following occurrences or any one or more of the
          -----------------
following events shall constitute a default ("Event of Default") hereunder:

          (a)  default in the payments due under the Loan Documents (as modified
               by this Letter Agreement) as and when due; and

          (b)  default  (after  the  date  hereof)  in  the  observance  or  the
               performance  of any covenant or agreement  herein set forth or in
               any  Loan  Document  or other  agreement,  note,  or  instrument,

<PAGE>
December 10, 2001
Page 4

               heretofore,  now, or hereafter  executed by the Borrower in favor
               of the Bank, other than the Designated Events of Default

     I.   Cross-Defaults:  An Event of Default of any  obligation in this Letter
          --------------
Agreement will be deemed an Event of Default of each Loan Document.

     J.   Forbearance. Notwithstanding the existence of the Designated Events of
          -----------
Defaults in the Loan  Documents,  the Bank shall  forbear  from  exercising  its
rights and remedies  under the Loan  Documents  until the earlier of (a) January
18, 2002; or (b) the occurrence of an Event of Default hereunder.

     K.   Rights and Remedies. After the expiration of the forbearance period as
          -------------------
set  forth in  Sections  G and J,  the Bank  shall  have the  right to  exercise
immediately  all  rights  and  remedies  pursuant  to  the  Loan  Documents  and
applicable law, together with the following rights and remedies:

         (a)        the right to demand and receive  immediately,  without prior
                    notice to any Obligor,  full payment of all  obligations  of
                    the Obligors to the Bank;

         (b)        the right to appoint receivers; and

         (c)        the right to  immediate  possession  of any  property or any
                    other collateral securing the obligations of the Obligors to
                    the Bank.

     L.   Survival of Representations  and Warranties.  All  representations and
          -------------------------------------------
warranties  contained in this Letter Agreement are material and have been relied
upon by the Bank and have induced the Bank to enter into this Letter  Agreement,
and each such  representation  and warranty  shall  survive the delivery of this
Letter Agreement and the performance of all obligations hereunder.  The Obligors
hereby agree to hold the Bank  harmless  from and indemnify the Bank against any
and all losses that the Bank may incur including, but not limited to, reasonable
attorneys' fees, as a result of any inaccuracy in any representation or warranty
contained herein.

     M.   Fees and Expenses. Each Obligor, jointly and severally, agrees that it
          -----------------
is obligated to pay the Bank a forbearance  fee in the amount of $16,875.00  and
all  reasonable  out-of-pocket  expenses  of the  Bank in  connection  with  the
preparation,   execution   and  delivery  of  this  Letter   Agreement  and  all
documentation  related thereto,  including  reasonable fees and disbursements of
counsel to the Bank, all costs of collection  (including reasonable counsel fees
and fees of other  professionals)  in case  default is made  under  this  Letter
Agreement or any Loan Documents.

     N.   General  Release.  To the extent not otherwise  set forth herein,  the
          ----------------
Obligors hereby remise, release, acquit, satisfy and forever discharge the Bank,
its agents,  employees,  officers,  directors,  predecessors,  attorneys and all
others  acting on behalf of or at the direction of the Bank, of and from any and
all manner of  actions,  causes of action,  suit,  debts,  accounts,  covenants,

<PAGE>
December 10, 2001
Page 5

contracts, controversies,  agreements, variances, damages, judgments, claims and
demands whatsoever, in law or in equity, which any of such parties ever had, now
have or can,  shall  or may at any time  have  against  the  Bank,  its  agents,
employees,  officers, directors,  attorneys and all persons acting or purporting
to act on behalf of or at the direction of the Bank ("Releasees"),  for, upon or
by reason of any matter,  cause or thing  whatsoever  through  the date  hereof.
Without  limiting  the  generality  of the  foregoing,  the  Obligors  waive and
affirmatively agree not to allege or otherwise pursue any defenses,  affirmative
defenses, counterclaims,  claims, causes of action, setoffs or other rights they
do, shall or may have as of the date hereof,  including, but not limited to, the
rights to contest: (a) the right of the Bank, upon the expiration or termination
of the forbearance, to exercise the rights and remedies described in Paragraph K
above and other rights and remedies described in this Letter Agreement;  (b) any
provision  of this  Letter  Agreement  or the  Loan  Documents;  (c) the  liens,
pledges,  assignments,  security  interests  and other  collateral  or  security
granted by the Loan Documents or in this Letter Agreement; or (d) any conduct of
the Bank or Releasees.

     O.   Negotiations. Each Obligor stipulates and agrees that each of the Loan
          ------------
Documents and this Letter  Agreement are products of and result from arms length
negotiations  between the parties and that  neither the Bank nor any other party
has exerted or attempted to exert  improper or unlawful  pressure in  connection
with the  execution  or delivery of this  Letter  Agreement,  or any of the Loan
Documents. Without in any way limiting the foregoing, each of the parties hereto
stipulate  and agree that at all times  during  the  course of the  negotiations
surrounding  the  execution  and delivery of the Loan  Documents and this Letter
Agreement,  they have, to the extent deemed necessary or advisable in their sole
discretion,  been  advised  and  assisted  by  competent  counsel  of their  own
choosing,  that  counsel  has been  present  and  actively  participated  in the
negotiations surrounding the Loan Documents and this Letter Agreement.

     P.   Miscellaneous.  This Letter Agreement  represents the entire agreement
          -------------
between the parties and supersedes all negotiations and  understandings  between
the parties  through the effective  date hereof.  This  agreement may be amended
only by an instrument  signed by all parties.  This  agreement is intended to be
binding upon the Bank,  the  Borrower  and each of the other  Obligors and their
successors, assigns, heirs, legal representatives, and executors. This agreement
shall be governed by the laws of The Commonwealth of Massachusetts.

     All other terms and conditions of the Loan  Documents  shall remain in full
force and effect except as modified by this Letter Agreement.

     Upon any Event of Default  hereunder,  the Bank will be under no obligation
to  continue  to  forbear  in taking any  action  permitted  under  this  Letter
Agreement, the Loan Documents or applicable law.

     If the  foregoing  terms  are  satisfactory  to you,  would  you  kindly so
indicate by signing and returning the enclosed counterpart hereof.

<PAGE>
December 10, 2001
Page 6

                                               Very truly yours,

                                               CITIZENS BANK OF MASSACHUSETTS

                                               /s/ Christopher G. Daniel
                                               --------------------------------
                                                   Christopher G. Daniel
                                                   Vice President

<PAGE>
December 10, 2001
Page 7

AGREED AND ACCEPTED:

BORROWER:

PRIMESOURCE SURGICAL, INC.

By: /s/ Bradford C. Walker
   --------------------------------------
   Name:  Bradford C. Walker
   Title:    Chief Restructuring Officer

GUARANTORS:

BIMECO, INC.

By: /s/ Bradford C. Walker
   --------------------------------------
   Name:  Bradford C. Walker
   Title:    Chief Restructuring Officer

RUBY MERGER SUB, INC.

By: /s/ Bradford C. Walker
   --------------------------------------
   Name:  Bradford C. Walker
   Title:    Chief Restructuring Officer

PRIMESOURCE HEALTHCARE, INC. f/k/a LUXTEC CORPORATION

By:/s/ Bradford C. Walker
   --------------------------------------
   Name:  Bradford C. Walker
   Title:    Chief Restructuring OfficerEXHIBIT 10.2

                                January 17, 2002

Mr. Bradford Walker
PrimeSource Surgical, Inc.
Bimeco, Inc.
Ruby Merger Sub, Inc.
3700 E. Columbia Street
Tucson, AZ  85714

Mr. Bradford Walker
PrimeSource Healthcare, Inc.
f/n/a Luxtec Corporation
99 Hartwell Street
West Boylston, MA 01583

     Re:  LETTER  AGREEMENT  DATED  AS  OF  DECEMBER  11,  2001,  BY  AND  AMONG
          PRIMESOURCE  SURGICAL,  INC., AS BORROWER,  BIMECO,  INC., RUBY MERGER
          SUB,  INC.  AND  PRIMESOURCE  HEALTHCARE,  INC.,  AS  GUARANTORS,  AND
          CITIZENS  BANK OF  MASSACHUSETTS,  AS  SUCCESSOR  IN INTEREST TO STATE
          STREET BANK AND TRUST COMPANY, AS LENDER

Dear Brad:

     Reference is made to that certain Letter Agreement dated as of December 11,
2001 (the "Letter  Agreement"),  by and among  PrimeSource  Surgical,  Inc. (the
"Company"), as borrower, Bimeco, Inc. ("Bimeco"), Ruby Merger Sub, Inc. ("Ruby")
and PrimeSource  Healthcare,  Inc. ("PHI" and together with Bimeco and Ruby, the
"Guarantors"),  as guarantors,  and Citizens Bank of Massachusetts (the "Bank"),
as  successor  in interest to State  Street Bank and Trust  Company,  as lender.
Capitalized  terms used herein and not otherwise defined shall have the meanings
ascribed to them in that certain Amended and Restated Credit  Agreement dated as
of June 14, 1999, as amended (the "Credit Agreement") by and among the Bank, the
Company and the Guarantors.

     The Bank, the Company and the Guarantors hereby agree that (a) the Deferral
Period (as defined in the Letter Agreement) is hereby extended until February 1,
2002.

     In order to  induce  the Bank to enter  into  this  Extension  Letter,  the
Company and the Guarantors  hereby  represent and warrant that (a) no Default or
Event of Default  under the Credit  Agreement  exists on the date  hereof  after
giving  effect to this  Extension  Letter (other than the  Designated  Events of

<PAGE>

Defaults (as defined in the Letter Agreement) and (b) all of the representations
and  warranties  contained in the Credit  Agreement  are true and correct in all
material  respects as of the date hereof after giving  effect to this  Extension
Letter, with the same effect as if those representations and warranties had been
made on and as of the date hereof (it being  understood that any  representation
or warranty made as of a specified date shall be required to be true and correct
in all material respects only as of such specified date).

     To the  extent  not  otherwise  set  forth  herein,  the  Company  and  the
Guarantors  hereby remise,  release,  acquit,  satisfy and forever discharge the
Bank, its agents, employees,  officers, directors,  predecessors,  attorneys and
all others  acting on behalf of or at the direction of the Bank, of and from any
and all manner of actions,  causes of action, suit, debts, accounts,  covenants,
contracts, controversies,  agreements, variances, damages, judgments, claims and
demands whatsoever, in law or in equity, which any of such parties ever had, now
have or can,  shall  or may at any time  have  against  the  Bank,  its  agents,
employees,  officers, directors,  attorneys and all persons acting or purporting
to act on behalf of or at the direction of the Bank ("Releasees"),  for, upon or
by reason of any matter,  cause or thing  whatsoever  through  the date  hereof.
Without limiting the generality of the foregoing, the Company and the Guarantors
waive and  affirmatively  agree not to allege or otherwise  pursue any defenses,
affirmative defenses, counterclaims,  claims, causes of action, setoffs or other
rights  they do,  shall or may have as of the date  hereof,  including,  but not
limited  to,  the  rights  to  contest:  (a) the  right  of the  Bank,  upon the
expiration  or  termination  of the  forbearance,  to  exercise  the  rights and
remedies  described in Paragraph K of the Letter  Agreement and other rights and
remedies  described in the Letter  Agreement;  (b) any  provision of this Letter
Agreement or the Loan Documents; (c) the liens, pledges,  assignments,  security
interests and other  collateral or security  granted by the Loan Documents or in
this Letter Agreement; or (d) any conduct of the Bank or Releasees.

     This  Extension  Letter is limited as specified and shall not  constitute a
modification,  amendment  or waiver of any  provisions  of the Credit  Agreement
(other than as expressly  provided for herein) or constitute a course of dealing
between the parties.

     This Extension  Letter may be executed in any number of counterparts and by
the parties  hereto on separate  counterparts,  each of which  counterpart  when
executed and delivered  shall be an original,  but all of which  together  shall
constitute one and the same instrument.

     This Extension Letter shall be governed by and construed in accordance with
the laws of the Commonwealth of Massachusetts.

     From and after the date  hereof,  all  references  to the Letter  Agreement
shall be deemed to be references to the Letter Agreement as modified hereby.

                           [Signature page to follow]

<PAGE>

     Please  confirm that the  foregoing  correctly  sets forth our agreement by
signing and returning  the  duplicate  copy of this  Extension  Letter  enclosed
herewith.

                                                  Very truly yours,

                                                  CITIZENS BANK OF MASSACHUSETTS

                                                  By: /s/ Christopher Daniel
                                                     ---------------------------
                                                     Name:  Christopher Daniel
                                                     Title:    Vice President

Accepted and agreed to as of
the date first written above:

PRIMESOURCE SURGICAL, INC.

By: /s/ Bradford C. Walker
   --------------------------------------
   Name:        Bradford C. Walker
   Title:       Chief Restructuring Officer

BIMECO, INC.

By: /s/ Bradford C. Walker
   --------------------------------------
   Name:        Bradford C. Walker
   Title:       Chief Restructuring Officer

RUBY MERGER SUB, INC.

By: /s/ Bradford C. Walker
   --------------------------------------
   Name:        Bradford C. Walker
   Title:       Chief Restructuring Officer

PRIMESOURCE HEALTHCARE, INC.
f/n/a/ LUXTEC CORPORATION

By: /s/ Bradford C. Walker
   -------------------------------------
   Name:        Bradford C. Walker
   Title:       Chief Restructuring Officer

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