Document:

VISION TWENTY-ONE, INC

EXHIBITS 4.47 and 10.116

	
 

	
Vision Twenty-One, Inc.

	
Third Amendment to Amended and Restated Credit Agreement

	
This Third Amendment to Amended and Restated Credit Agreement (herein, the "Amendment") is entered into as of July 12, 2001, among Vision Twenty-One, Inc., a Florida corporation (the "Borrower"), the Lenders party hereto, and Bank of Montreal as Agent for the Lenders.

	
Preliminary Statements

	
A.The Borrower, the Lenders, and the Agent are parties to an Amended and Restated Credit Agreement, dated as of November 10, 2000, as amended (herein, the "Credit Agreement"). All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

	
B.The Borrower and the Lenders have agreed to amend the Credit Agreement on the terms and conditions as provided for in this Amendment.

	
Now, Therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

	
Section 1.Amendments.

	
Subject to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows:

	
1.1.Section 8.22(b) of the Credit Agreement shall be amended and restated in its entirety to read as follows:

	
(b)The Borrower shall not permit any Dormant Subsidiary to engage in any trade or business or have total assets with a value of more than $1,000 without the prior written consent of the Required Lenders and then only if such Subsidiary becomes a guarantor of the Obligations and pledges its assets pursuant to Section 4 hereof; and the Borrower hereby agrees that it shall dissolve or merge out of existence all Dormant Subsidiaries by no later than September 30, 2001, unless otherwise consented to by the Required Lenders.

	
1.2.Section 9.1(m) of the Credit Agreement shall be amended and restated in its entirety to read as follows:

	
(m)the Borrower and its shareholders fail to approve and authorize the increase in the authorized shares of the Borrower's capital stock pursuant to the Plan of Restructuring by September 30, 2001, or the Borrower fails to reserve sufficient shares of authorized capital stock of the Borrower to satisfy the requirements of the Convertible Note and Warrant Documents by such date.

	
Section 2.Conditions Precedent.

	
The effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent:

	
2.1.The Borrower, the Agent, and the Lenders shall have executed and delivered this Amendment.

	
2.2.Each Subsidiary (other than Dormant Subsidiaries) shall have executed its acknowledgement and consent to this Amendment in the space provided for that purpose below.

	
2.3.Legal matters incident to the execution and delivery of this Amendment shall be satisfactory to the Agent and its counsel.

	
Section 3.Release of Claims.

	
To induce the Lenders and the Agent to enter into this Amendment, the Borrower and, by signing the acknowledgement and consent referred to below, each of its Subsidiaries hereby release, acquit, and forever discharge the Lenders and the Agent and each of their Affiliates, and their officers, directors, agents, employees, successors, and assigns, from all liabilities, claims, demands, actions, and causes of action of any kind (if any there be), whether absolute or contingent, due or to become due, disputed or undisputed, at law or in equity, that they now have or ever had against the Lenders and the Agent and their Affiliates, or any one or more of them individually, under or in connection with the Credit Agreement or any of the other Loan Documents or any other credit, deposit or other financial accommodation made available to the Borrower or any one or more of its Subsidiaries.

	
Section 4.Miscellaneous.

	
4.1.The Borrower has heretofore executed and delivered to the Agent and the Lenders certain of the Collateral Documents. The Borrower hereby acknowledges and agrees that, notwithstanding the execution and delivery of this Amendment, the Collateral Documents remain in full force and effect and the rights and remedies of the Agent and the Lenders thereunder, the obligations of the Borrower thereunder, and the liens and security interests created and provided for thereunder remain in full force and effect and shall not be affected, impaired, or discharged hereby. Nothing herein contained shall in any manner affect or impair the priority of the liens and security interests created and provided for by the Collateral Documents as to the indebtedness which would be secured thereby prior to giving effect to this Amendment.

	
4.2.Except as specifically amended herein, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Credit Agreement, the Notes, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby.

	
4.3. The Borrower agrees to pay on demand all costs and expenses of or incurred by the Agent in connection with the negotiation, preparation, execution, and delivery of this Amendment and the other instruments and documents to be executed and delivered in connection herewith, including the fees and expenses of counsel for the Agent.

	
4.4.This Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart and each of such counterparts shall for all purposes be deemed to be an original. This Amendment shall be governed by the internal laws of the State of Illinois.

	
4.5.This Amendment together with the other Loan Documents represent the entire agreement of the Borrower, its Subsidiaries, the Lenders and the Agent with respect to the subject matter hereof and thereof, and there are no promises or undertakings by the Lenders or the Agent relative to the subject matter hereof or thereof not expressly set forth therein. 

	
[Signature Pages to Follow]

 

 

This Third Amendment to Amended and Restated Credit Agreement is dated as of the date and year first above written.

	

	
Vision Twenty-One, Inc.

	
	
By /s/Mark Gordon

	
	
Name Mark Gordon 

	
	
Title C.E.O.

Acknowledged and agreed to as of the date first above written.

	
Bank of Montreal, in its individual capacity as a Lender and as Agent

By /s/Jack J. Kane

Name Jack J. Kane

Title Director
	
Bank One Texas, N.A.

By /s/ Ronnie Kaplan

Name Ronnie Kaplan

Title First Vice President

	
Pacifica Partners I, L.P.

By: Imperial Credit Asset Management, as

its Investment Manager

By /s/Dean K. Kawai

Name Dean K. Kawai

Title Vice President
	
Pilgrim Prime Rate Trust

By: ING Pilgrim Investments, as its

Investment Manager

By /s/ Charles E. LeMieux

Name Charles E. LeMieux, CFA

Title Vice President

	
Pilgrim America High Income Investments Ltd.

By: ING Pilgrim Investments, as its

Investment Manager

By /s/ Charles E. LeMieux

Name Charles E. LeMieux, CFA

Title Vice President
	
Merrill Lynch Business Financial Services, Inc.

By /s/Gary L. Stewart

Name Gary L. Stewart

Title Vice President

 

Acknowledgement and Consent

The undersigned Subsidiaries of Vision Twenty-One, Inc., have heretofore executed and delivered to the Agent and the Lenders one or more Guaranties and Collateral Documents. Each of the undersigned hereby consents to the Third Amendment to Amended and Restated Credit Agreement as set forth above and confirms that its Guaranty and Collateral Documents, and all of its obligations thereunder, remain in full force and effect. Each of the undersigned further agrees that the consent of the undersigned to any further amendments to the Credit Agreement shall not be required as a result of this consent having been obtained, except to the extent, if any, required by the Loan Documents referred to above. 

	

	
"Guarantors"

	
	
Vision 21 Physician Practice Management Company

	
	
Vision 21 Managed Eye Care of Tampa Bay, Inc.

	
	
Vision Twenty-One Managed Eye Care IPA, Inc.

	
	
BBG-COA, Inc.

	
	
LSI Acquisition, Inc.

	
	
MEC Health Care, Inc.

	
	
Vision Twenty-One Eye Surgery Centers, Inc.

	
	
Eye Surgery Center Management, Inc.

	
	
Vision Twenty-One Refractive Center, Inc.

	
	
Vision Twenty-One of Wisconsin, Inc.

	
	
New Jersey Eye Laser Centers, Inc.

	
	
Vision Twenty-One Eye Laser Centers, Inc.

	
	
Block Vision, Inc.

	
	
UVC Independent Practice Association, Inc.

	
	
By Mark Gordon

	
	
Mark B. Gordon, an authorized signatory for each of the above-referenced entitiesRobert D. Woltil

EXHIBIT 10.121

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement"), effective as of the 30th day of May, 2001 (the "Effective Date"), by and among VISION TWENTY-ONE, INC., a Florida corporation, ("Vision 21"), MEC HEALTH CARE, INC., a Maryland corporation ("MEC"), BLOCK VISION, INC., a New Jersey corporation ("Block Vision"; Vision 21, MEC and Block Vision may be collectively referred to as the "Company"), and Richard Jones (the "Executive").

WHEREAS, the Executive has served as an executive officer and key employee of Vision 21 in accordance with the terms of an Employment Agreement dated July 31, 2001, as amended effective November 10, 2000 (the "Original Agreement"); 

WHEREAS, the Company wishes to assure itself of the continued services of the Executive for the period provided in this Agreement and the Executive is willing to continue to serve in the employ of the Company for such period; and

WHEREAS, the Company and the Executive wish to amend and restate the Original Agreement effective as of the Effective Date in accordance with the terms and conditions hereinafter set forth. 

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties, intending to be legally bound, hereby agree as follows:

1. EMPLOYMENT

The Company hereby agrees to employ the Executive as Chief Financial Officer of the Company upon the terms and conditions herein contained, and the Executive hereby agrees to accept such employment for the term described below. The Executive shall have such powers and responsibilities consistent with his position as Chief Financial Officer as the Chief Executive Officer may assign to him.

Throughout the term of this Agreement, the Executive shall devote his best efforts and substantially all of his business time and services to the business and affairs of the Company. This shall include business travel by the Executive at a level consistent with the reasonable business needs of the Company consistent with past practice. If the Company elects to relocate the Executive's principal place of business outside of the Baltimore metropolitan area without the Executive's consent, the provisions of Section 5 (a) shall apply. During the term of this Agreement, the Executive may devote up to eight percent (8%) of his full working time to the business and affairs of Emergency Fuel, LLC.

2. TERM OF AGREEMENT

The initial term (the "Initial Term") of employment under this Agreement shall be for a period of five years and five months, which Initial Term commenced on July 31, 2000and one-half (5 1/2) years and shall end on December 31, 2005. After the expiration of the Initial Term, the term of the Executive's employment hereunder may be extended by mutual consent of the parties hereto. The parties shall each endeavor to give to the other written notice of their intentions regarding renewal of this Agreement at least ninety (90) days prior to the expiration of the Initial Term, or any renewal term, and any such renewal shall be conditioned upon the execution and delivery of an appropriate amendment to this Agreement. If the Company does not offer the Executive the opportunity to renew this Agreement at the expiration of the Initial Term on terms at least as favorable as those in effect immediately prior to the expiration of the Initial Term, the Company shall be obligated to make a series of monthly payments to the Executive for twelve (12) months from the date of the expiration of the Initial Term. Each monthly payment shall be equal to one twelfth (1/12th) of the Executive's annual base salary in effect during the last twelve (12) months of the Initial Term.

Notwithstanding the foregoing, the Company shall be entitled to terminate this Agreement immediately, subject to a continuing obligation to make any payments required under Section 5 below, if the Executive (i) becomes disabled as described in Section 5(b), (ii) is terminated for Cause, as defined in Section 5(c), or (iii) voluntarily terminates his employment before the expiration of the Initial Term or any renewal term of this Agreement, as described in Section 5(d).

3. SALARY AND BONUS INCENTIVES

The Executive shall receive a base salary during the term of this Agreement at a rate of not less than $175,000 per annum, payable in biweekly installments consistent with the Company's normal payroll schedule. The Executive's annual base salary during the term of this Agreement may be increased as deemed appropriate by the Board.

The Executive shall also be entitled to receive the following incentive bonuses from the Company: 
(a) Covenant Compliance Bonus. The Executive shall be paid a compliance bonus (the "Covenant Compliance Bonus"), equal to ten percent (10%) of the Executive's annual base salary, if (i) the Company is in compliance with the covenants contained in Section 8 of the Amended and Restated Credit Agreement dated November 10, 2000, as amended March 31, 2001 (the "Credit Agreement") among the Company, the Bank of Montreal as Agent, and the other lenders party thereto (collectively, the "Lenders"), except for the covenants contained in Sections 8.25 and 8.26 of the Credit Agreement captioned "Minimum EBITDA" and "Interest Coverage Ratio," respectively, and (ii) the Company has maintained EBITDA and an interest coverage ratio as set forth on Schedule 3(b) annexed hereto (collectively, the "Covenants"). An amount equal to twenty-five percent (25%) of the Covenant Compliance Bonus shall be paid to the Executive for each fiscal quarter during which the Company either maintained compliance with the Covenants or the Lenders waived compliance with any one or more of the Covenants with which the Company was not in compliance. or the banks a party to the New Credit Agreement (collectively, the "Banks") waived compliance with the New Credit Facility Covenants. Each quarterly payment shall be made to the Executive within ten (10) days of the (i) delivery by the Company's Chief Financial Officer to the Lenders of the compliance certificate required under the Credit Agreement., or (ii) the Bank's waiver of the New Credit Facility Covenants. A copy of such compliance certificate shall also be delivered to the Compensation Committee of the Board at the time that it is provided to the Lenders.

(b) Performance Bonus. The Executive shall be paid a performance bonus (the "Performance Bonus") equal to the following percentage of the Executive's annual base salary (as in effect on the last day of the applicable fiscal year), if the following percentage of the EBITDA Target for the applicable fiscal year is achieved:

	
Percentage of Annual Base Salary
	
 
	
Percentage of EBITDA TARGET

	
 
	
 
	
 

	
20%
	
 
	
95-105%

	
25%
	
 
	
106-115%

	
35%
	
 
	
116-120%

	
40%
	
 
	
121-125%

	
50%
	
 
	
126% plus

	
If earned, the Performance Bonus shall be paid to the Executive within ninety (90) days of the end of the applicable fiscal year. 

	
Unless revised by mutual consent of the Company and the Executive, the EBITDA Target for the fiscal years 2001 and 2002 shall be as follows:

	
Fiscal Year
	
	
EBITDA Target

	
2001
	
	
$6,589,000

	
2002
	
	
$7,867,000

	
The EBITDA Target for the fiscal years 2003, 2004 and 2005 will be determined by the Board of Directors.

	
For purposes hereof, EBITDA shall have the meaning given to such term in the Credit Agreement, except that (i) EBITDA shall be limited to the EBITDA of the Company's managed care division less general corporate overhead, and shall exclude EBITDA for the Company's ASC/RSC division, (ii) EBITDA shall be calculated before consideration of any bonus amounts earned pursuant to this Agreement or earned pursuant to any other agreement between the Company and an executive containing bonus arrangements similar to those contained in this Agreement, and (iii) EBITDA for fiscal year 2001 shall exclude the impact of the reversal of restructuring related accruals booked in fiscal year 2000 or earlier.

	
(c) Sale Bonus. The Executive shall be paid a sale bonus ( the "Sale Bonus") if the Company is sold pursuant to a merger, sale of assets or sale of stock as a result of the Company's inability, after commercially reasonable efforts are made, to refinance the Company's indebtedness to the Lenders under the Credit Agreement, other than due to the Company's default under the Credit Agreement, by the initial maturity of the Credit Agreement (hereinafter, a "Sale Event"), as follows: if the Sale Event occurs subsequent to the initial maturity of the Credit Agreement,second anniversary of the Effective Date but prior to the expiration of the Initial Term or any renewal term of this Agreement, the executive management team of the Company shall be entitled to receive an amount equal to two and one-half percent (2 1/2%) of the gross sales price realized by the Company from the Sale Event (the "Management Bonus"), and the Executive shall be entitled to receive an amount equal to twenty-one and 43/100 percent (21.43%) of the Management Bonus at the closing of the Sale Event. For purposes hereof, the following individuals shall constitute the executive management team of the Company: Mark Gordon, O.D.; Andrew Alcorn; Ellen Gordon; Richard Jones; and Howard Levin, O.D. If any of such individuals cease to be employed by the Company, the Chief Executive Officer of the Company may allocate such individual's percentage of the Management Bonus to another individual, or reallocate the Management Bonus among the remaining members of the executive management team named in this Section 3 (d), subject to the approval of the Board of Directors or the appropriate committee thereof. 

	
4. ADDITIONAL COMPENSATION AND BENEFITS

	
The Executive shall receive the following additional compensation and welfare and fringe benefits:

	
(a)Stock Options. Pursuant to the terms of a separate Stock Option Agreement, the Executive shall be granted such number of stock options under the Vision 21 Stock Incentive Plan as the Board of Directors of Vision 21 shall deem appropriate. Such option grant shall be made to the Executive within a reasonable period of time, subject to shareholder approval of an amendment to Vision 21's Certificate of Incorporation increasing the number of authorized shares of Vision 21 common stock (the "Shareholder Approval"). Provided that there is no Change in Corporate Control as described in Section 6, the Company's postponement of the shareholders meeting and/or determination not to convene the shareholders meeting to obtain Shareholder Approval shall not be deemed to be a breach by the Company of its obligations under this Section 4 (a). Notwithstanding the foregoing, should the Company's inside directors determine to proceed with the shareholders meeting to obtain Shareholder Approval and the shareholders meeting is not convened because the Company's outside directors do not agree with such determination, the Company's failure to obtain Shareholder Approval shall be deemed to be a breach by the Company of its obligations under this Section 4 (a) if the Company does not have a sufficient number of its shares of common stock to reserve for issuance upon exercise of the stock options required to be granted to the Executive hereunder.

	
(b)Medical Insurance. During the term of this Agreement, the Company shall provide the Executive and his dependents, at no cost to them, with health insurance coverage on terms at least as favorable as those provided to the Executive under the Original Agreement. The Executive shall also be entitled to receive life and disability insurance coverage on the same basis as such coverage is made available to other executives from time to time.

	
(c)Business Expenses. The Company shall reimburse the Executive for all reasonable expenses he incurs in promoting the Company's business, including expenses for travel, entertainment of business associates service and usage charges for business use of cellular phones and similar items, upon presentation by the Executive from time to time of an itemized account of such expenditures. The Executive shall be entitled to use the use of a Company credit card for charging business expenses, in accordance with the Company's policy for executive employees.

	
(d)Automobile. The Company will provide the Executive with the use of a leased automobile. The Executive may select the make and model desired, up to a maximum monthly lease payment (including taxes) of $800. The Company will also cover the costs of routine maintenance, fuel and liability insurance for the leased vehicle. The Executive will be responsible for appropriately reporting his personal use of the vehicle for income tax purposes.

	
(e)Vacation and Other Absences. The Executive shall be entitled to six (6) weeks paid vacation during each year of this Agreement, in addition to such other paid absences, whether for illness, holidays, personal time or any similar purposes in accordance with the plans, policies, programs and practices of the Company established for senior executives of the Company from time to time. 

	
In addition to the benefits provided pursuant to the preceding paragraphs of this Section 4, the Executive shall be eligible to participate in such other executive compensation and retirement plans of the Company as are applicable generally to other officers, and in such indemnification or liability insurance arrangements, welfare benefit plans, programs, practices and policies of the Company as are generally applicable to other key employees.

	
5. PAYMENTS UPON TERMINATION

	

	Involuntary Termination. 

	
  (1) If the Executive's employment is terminated by the Company during the term of this Agreement, other than for (i) death, (ii) disability as described in Section 5 (b), (iii)"Cause" as described in Section 5 (c), or (iv) a voluntary termination by the Executive as described in this Section 5 (d), the Company shall be obligated to: (A) make a lump sum payment upon such termination to the Executive in an amount equal to the sum of the following: (i) the amount of the Executive's annual base salary paid during the twelve (12) months immediately preceding such termination; and (ii) the amount of the Covenant Compliance Bonus and Performance Bonus, if any, earned under Section 3 for the fiscal year immediately preceding such termination; and (B) commencing with the pay date immediately following such termination, pay to the Executive, in equal consecutive installments, paid in accordance with the Company's normal payroll schedule, but no less frequently than monthly, an amount equal to the Executive's annual base salary paid during the twelve (12) months immediately preceding such termination (the "Installment Termination Payments"). Each Installment Termination Payment shall be reduced by all amounts the Executive is then receiving as compensation for services performed in any position with any new employer (including a position as an officer, employee, consultant or agent, or self-employment as a partner or sole proprietor). 

	
(2) If a "Change in Corporate Control" as described in Section 6 occurs, whether or not the Executive's employment with the Company is terminated following the Change in Corporate Control, the Company shall be obligated to make a lump sum payment upon such Change in Corporate Control to the Executive in an amount equal to the sum of the following: (i) the amount of the Executive's annual base salary paid during the twelve (12) months immediately preceding the Change in Corporate Control, multiplied by two (2); and (ii) the amount of the Covenant Compliance Bonus and Performance Bonus, if any, earned under Section 3 for the fiscal year immediately preceding the Change in Corporate Control (the "Change in Corporate Control Payment"). If the Executive's employment is terminated by the Company pursuant to Section 5 (a) (1) at any time subsequent to the occurrence of a Change in Corporate Control pursuant to Section 6 (b) (1), (2) or (4), the Company shall not be obligated to make the severance payments to the Executive pursuant to Section 5 (a) (1), provided that the Change in Corporate Control Payment was made to the Executive upon the Change in Corporate Control. If the Executive's employment is terminated by the Company pursuant to Section 5 (a) (1) at any time subsequent to the occurrence of a Change in Corporate Control pursuant to Section 6 (b) (3), the Company shall be obligated to make the severance payments to the Executive pursuant to Section 5 (a) (1) in accordance with its terms.

	
For purposes of this Section 5 (a) (1) and (2), if the termination or Change in Corporate Control occurs prior to August 1, 2001, the annual base salary amount used to calculate the severance payments due to the Executive hereunder shall be the annual base salary in effect on the Effective Date.

	
In addition to the other payments to be made to Executive in accordance with this Section 5 (a) (1) and (2), the Executive shall also receive such non-forfeitable benefits already earned and payable to him under the terms of any deferred compensation, incentive or other benefit plan maintained by the Company, payable in accordance with the terms of the applicable plan. 

	
If the Company should, during the term of this Agreement, require the Executive to relocate his business office outside of the Baltimore metropolitan area, the Executive shall have the right, within sixty (60) days following this request, to resign from employment and have such resignation be deemed to be an involuntary termination triggering the severance provisions of this Section 5 (a). 

	
 If the Company defaults in its obligation to make any severance payments required to be paid under Section 5 (a) (1) or (2) or under Section 2: (i) the provisions of Section 10 shall be inoperable; (ii) the entire unpaid balance of the severance payments shall become immediately due and payable; and (iii) if the Executive prevails in any suit commenced by the Executive to collect such severance payments, all costs and expenses of such suit incurred by the Executive, including reasonable attorneys' fees, shall be paid by the Company to the Executive. 

	
  (b)Disability. The Company shall be entitled to terminate this Agreement, if the Board of Directors determines that the Executive has been unable to attend to his duties for at least ninety (90) days because of a medically diagnosable physical or mental condition, and has received a written opinion from a physician acceptable to the Board that such condition prevents the Executive from resuming full performance of his duties and is likely to continue for an indefinite period. Upon such termination, the Company shall pay to Executive a monthly disability benefit equal to one twenty-fourth (1/24th) of his current annual base salary at the time he became permanently disabled. Payment of such disability benefit shall commence on the last day of the month following the date of the termination by reason of permanent disability and cease with the earliest of (i) the month in which the Executive returns to active employment, either with the Company or otherwise, (ii) the end of the Initial Term of this Agreement, or the current renewal term, as the case may be, or (iii) the twenty-fourth month after the date of the termination. Any amounts payable under this Section 5 (b) shall be reduced by any amounts paid to the Executive under any long-term disability plan or other disability program or insurance policies maintained or provided by the Company.

	
(c)Termination for Cause. If the Executive's employment is terminated by the Company for Cause, the amount the Executive shall be entitled to receive from the Company shall be limited to his base salary accrued through the date of termination, and any nonforfeitable benefits already earned and payable to the Executive under the terms of deferred compensation or incentive plans maintained by the Company.

	
For purposes of this Agreement, the term "Cause" shall be limited to (i) any action by the Executive involving a willful material disloyalty to the Company, such as embezzlement, fraud, misappropriation of corporate assets or a breach of the covenants set forth in Sections 9 and 10 below; or (ii) the Executive being convicted of a felony; or (iii) the Executive being convicted of any lesser crime or offense committed in connection with the performance of his duties hereunder or involving moral turpitude; or (iv) the intentional and willful failure by the Executive to substantially perform his duties hereunder as directed by the Chief Executive Officer of Vision 21 (other than any such failure resulting from the Executive's incapacity due to physical or mental disability). No termination shall occur under subsection (iv) of this Section 5 (c) unless the Executive shall have first received written notice from the Chief Executive Officer advising of the acts or omissions that constitute the failure to perform his duties, and such failure continues after he shall have had a reasonable opportunity, not to exceed thirty (30) days, to correct the acts or omissions complained of. 

	
(d)Voluntary Termination by the Executive. If the Executive resigns or otherwise voluntarily terminates his employment before the end of the Initial Term or any renewal term of this Agreement, the amount the Executive shall be entitled to receive from the Company shall be limited to his base salary accrued through the date of termination, and any nonforfeitable benefits already earned and payable to the Executive under the terms of any deferred compensation or incentive plans of the Company.

	
For purposes of this paragraph, a resignation by the Executive shall not be deemed to be voluntary if the Executive resigns during the period of three months after the date (1) he is assigned to a position of lesser rank (other than for Cause, or by reason of permanent disability), (2) he is assigned duties materially inconsistent with his position, or (3) the Company breaches any of its material obligations hereunder.

	
6. EFFECT OF CHANGE IN CORPORATE CONTROL

	
(a) In the event of a Change in Corporate Control, the provisions of Section 5 (a) of this Agreement shall apply, and any stock options granted to the Executive under Vision 21's Stock Incentive Plan shall become immediately vested in full and exercisable in full.

	
(b) For purposes of this Agreement, a "Change in Corporate Control" shall include any of the following events:

	
(1)The acquisition in one or more transactions of more than thirty percent (30%) of Vision 21's outstanding Common Stock by any corporation, or other person or group (within the meaning of Section 14(d) (3) of the Securities Exchange Act of 1934, as amended), excluding any Vision 21 Common Stock issued pursuant to acquisition(s) in connection with the restructuring of the Company's (i) credit facility with the Lenders in accordance with the Credit Agreement, or (ii) obligations to unsecured creditors in accordance with the Plan of Restructuring referred to in the Credit Agreement. at or about the time of the closing of the New Credit Agreement;

	
(2) Any merger or consolidation of Vision 21 into or with another corporation in which Vision 21 is not the surviving entity, or any transfer or sale of substantially all of the assets of the Company or any merger or consolidation of Vision 21 into or with another corporation in which Vision 21 is the surviving entity and, in connection with such merger or consolidation, all or part of the outstanding shares of Vision 21 Common Stock shall be changed into or exchanged for other stock or securities of any other person, or cash, or any other property.

	
(3)Any election of persons to the Board of Directors of Vision 21 which causes a majority of the Board of Directors of Vision 21 to consist of persons other than those persons who were members of the Board of Directors of Vision 21 on the Effective Date (hereinafter, the "Current Board"); provided that, a Change in Corporate Control shall not be deemed to have occurred if (i) there is a change in the majority of the Current Board as a result of nominations made by the Current Board or nominations made by persons who were themselves nominated by the Current Board, or (ii) there is a change in the Current Board resulting from any termination as a member of the Current Board by any executive of the Company either for Cause or due to such individual's desire to terminate his position on the Current Board.

	

	Any person or group of persons, successfully completes a tender offer for at least fifty-one percent (51%) of Vision 21's Common Stock; provided that, no acquisition of stock by any person in a public offering or private placement of Vision 21's common stock approved by the Board of Directors of Vision 21 in office immediately preceding the time of such transaction shall be considered a Change in Corporate Control.

	
(c)Notwithstanding anything else in this Agreement, the amount of severance compensation payable to the Executive as a result of a Change in Corporate Control under this Section 6, or otherwise, shall be limited to the maximum amount the Company would be entitled to deduct pursuant to Section 280G of the Internal Revenue Code of 1986, as amended.

	
7. DEATH

	
If the Executive dies during the term of this Agreement, the Company shall pay to the Executive's estate a lump sum payment equal to the sum of (i) the Executive's base salary accrued through the date of death, (ii) the total unpaid amount of any bonuses earned with respect to the fiscal year of the Company most recently ended, and (iii) an amount equal to twelve (12) months of the Executive's base salary at the rate in effect on the date of death. In addition, the death benefits payable by reason of the Executive's death under any retirement, deferred compensation or other employee benefit plans maintained by the Company for other employees generally shall be paid to the beneficiary designated by the Executive in accordance with the terms of the applicable plan or plans. If the Company seeks to obtain insurance coverage to fund the Company's obligation to the Executive under subsection (iii) of this Section 7, the Executive shall cooperate with the Company in its efforts to obtain such coverage.

	
8. WITHHOLDING

	
 The Company shall, to the extent permitted by law, have the right to withhold and deduct from any payment hereunder any federal, state or local taxes of any kind required by law to be withheld with respect to any such payment.

	
9. PROTECTION OF CONFIDENTIAL INFORMATION

	
The Executive agrees that he will keep all confidential and proprietary information of the Company or relating to its business (including, but not limited to, information regarding the Company's customers, pricing policies, methods of operation, proprietary computer programs and trade secrets) confidential, and that he will not (except with the Company's prior written consent, subject to Board approval), while in the employ of the Company or thereafter, disclose any such confidential information to any person, firm, corporation, association or other entity, other than in furtherance of his duties hereunder, and then only to those with a "need to know." The Executive shall not make use of any such confidential information for his own purposes or for the benefit of any person, firm, corporation, association or other entity (except the Company) under any circumstances during or after the term of his employment. The foregoing shall not apply to any information which is already in the public domain, or is generally disclosed by the Company or is otherwise in the public domain at the time of disclosure. The provisions of this Section 9 shall not apply to the Executive's know how to the extent utilized by him in any subsequent employment that is not in violation of this Section 9.

	
The Executive recognizes that because his work for the Company will bring him into contact with confidential and proprietary information of the Company, the restrictions of this Section 9 are required for the reasonable protection of the Company and its investments and for the Company's reliance on and confidence in the Executive.

	
10. COVENANT NOT TO COMPETE

	
The Executive hereby agrees that he will not, either during the term of this Agreement or during the period of twenty-four (24) months from the time the Executive's employment under this Agreement is terminated, engage in any business activities on behalf of any enterprise which competes with the Company in any business in which the Company is now engaged or any other business in which the Company is actively engaged at the time of the termination. The Executive will be deemed to be engaged in such competitive business activities if he participates in such a business enterprise as an employee, officer, director, consultant, agent, partner, proprietor, or other participant. Notwithstanding the foregoing, the Executive will not be considered to violate this covenant not to compete by reason of (i) employment with a full-service health maintenance organization, provided that the primary function of the Executive for such HMO is not related to a competitive business activity, or (ii) the ownership of no more than five percent (5%) of the stock of a publicly traded corporation engaged in a competitive business. 

	
The Executive agrees that he shall not, at any time during the period of twenty-four months from the time his employment under this Agreement ceases (for whatever reason): 

	(i) solicit any employee or full-time consultant of the Company, or any individual who was an employee or full-time consultant of the Company during the six (6) month period preceding the Executive's termination of employment, for the purposes of hiring or retaining such employee or consultant; or

	(ii) solicit any present or prospective client of the Company for the purpose of offering such client services or products that are similar to those the Company is actively engaged in providing at the time of the Executive's termination.

	
The Executive shall be automatically discharged from any obligations under this Section 10 if the Company breaches its obligations to the Executive under Section 2 or under Section 5 (a) (1) or (2) of this Agreement.

	
11. INJUNCTIVE RELIEF

	
The Executive acknowledges and agrees that it would be difficult to fully compensate the Company for damages resulting from the breach or threatened breach of the covenants set forth in Sections 9 and 10 of this Agreement and accordingly agrees that the Company shall be entitled to temporary and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, to enforce such provisions in any action or proceeding instituted in any United States District Court or in any State court having subject matter jurisdiction. This provision with respect to injunctive relief shall not, however, diminish the Company's right to claim and recover damages.

	
It is expressly understood and agreed that although the parties consider the restrictions contained in this Agreement to be reasonable, if a court determines that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction on the activities of the Executive, no such provision of this Agreement shall be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such extent as such court may judicially determine or indicate to be reasonable.

	
12. SEPARABILITY

	
If any provision of this Agreement shall be declared to be invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall not affect the remaining provisions hereof which shall remain in full force and effect.

	
13. BINDING EFFECT; COMPANY LIABILITY JOINT AND SEVERAL.

	
This Agreement shall be binding upon and inure to the benefit of the heirs and representatives of the Executive, but neither this Agreement nor any rights hereunder shall be assignable or otherwise subject to hypothecation by the Executive. This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of Vision 21, MEC and Block Vision and each of Vision 21, MEC and Block Vision shall be jointly and severally liable to the Executive for all obligations imposed on the Company and owing to the Executive under this Agreement. 

	
14. ENTIRE AGREEMENT

	
Upon execution of this Agreement by all of the parties hereto, the Original Agreement shall be deemed amended and restated as set forth in this Agreement. As of the Effective Date, this Agreement represents the entire agreement of the parties and shall supersede any and all previous contracts, arrangements or understandings between the Company and the Executive. This Agreement may be amended at any time by mutual written agreement of the parties hereto.

	
15. GOVERNING LAW

	
This Agreement shall be construed, interpreted, and governed in accordance with the laws of the State of Florida, other than the conflict of laws provisions of such laws.

	
IN WITNESS WHEREOF, each of Vision 21, MEC and Block Vision have caused this Agreement to be duly executed, and the Executive has hereunto set his hand, as of the day and year first above written.

	
VISION TWENTY- ONE, INC.

/s/ Mark Gordon

By:_________________________________

Name: Mark Gordon

Title: Chief Executive Officer
	
MEC HEALTH CARE, INC

/s/ Howard Levin

By__________________________________

Name: Howard Levin

Title: Vice President

 

	
BLOCK VISION, INC.

/s/ Andrew Alcorn

By:__________________________________ Name: Andrew Alcorn

Title: President
	
EXECUTIVE:

/s/ Richard Jones

____________________________________

Richard Jones.

 

 

 

	
Schedule 3(b)

	

	
Minimum EBITDA. As of the last day of each fiscal quarter of the Company, the Company shall maintain EBITDA for the four fiscal quarters then ended of not less than:

	
FISCAL QUARTER ENDING ON OR ABOUT
	 	
MINIMUM EBITDA

	
12/31/00
	 	
$ 500,000

	
03/31/01
	 	
$1,500,000

	
06/30/01
	 	
$2,900,000

	
09/30/01
	 	
$4,600,000

	
12/31/01
	 	
$5,600,000

	
03/31/02
	 	
$6,300,000

	
06/30/02
	 	
$6,400,000

	
09/30/02
	 	
$6,500,000

	
12/31/02
	 	
$6,700,000

	
03/31/03
	 	
$6,700,000

	
06/30/03
	 	
$6,700,000

	
09/30/03 and thereafter
	 	
$6,700,000

	
; provided that EBITDA shall be calculated on December 31, 2000, for the one fiscal quarter then ended; on March 31, 2001, for the two fiscal quarters then ended; and on June 30, 2001, for the three fiscal quarters then ended.

	
Interest Coverage Ratio. As of the last day of each fiscal quarter of the Company, the Company shall maintain a ratio of (a) EBITDA for the four fiscal quarters of the Company then ended to (b) Interest Expense for the same four fiscal quarters of the Company then ended, of not less than:

	
FISCAL QUARTER ENDING ON OR ABOUT
	
	
INTEREST COVERAGE RATIO

	
	
	

	
12/31/00
	
	
.40 to 1.0

	
03/31/01
	
	
.65 to 1.0

	
06/30/01
	
	
.85 to 1.0

	
09/30/01
	
	
1.05 to 1.0

	
12/31/01
	
	
1.35 to 1.0

	
03/31/02
	
	
1.50 to 1.0

	
06/30/02
	
	
1.50 to 1.0

	
09/30/02
	
	
1.60 to 1.0

	
12/31/02
	
	
1.50 to 1.0

	
03/31/03
	
	
1.40 to 1.0

	
06/30/03
	
	
1.30 to 1.0

	
                        09/30/03 and thereafter
	
	
1.25 to 1.0

	
; provided that EBITDA and Interest Expense shall be calculated on December 31, 2000, for the one fiscal quarter then ended; on March 31, 2001, for the two fiscal quarters then ended; and on June 30, 2001 for the three fiscal quarters then ended.

	
For purposes hereof, the terms "EBITDA" and "Interest Expense" shall have the meanings given to such terms in the Credit Agreement.

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