Document:

THIRD AMENDMENT TO
                  SECOND AMENDED AND RESTATED REVOLVING CREDIT,
                        TERM LOAN AND SECURITY AGREEMENT

     THIS THIRD AMENDMENT TO SECOND AMENDED AND RESTATED REVOLVING CREDIT, TERM
LOAN AND SECURITY AGREEMENT (this "AMENDMENT") is made and entered into as of
this _____ day of January, 2005, by and between each of 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, the "BORROWER"),
and CAPITALSOURCE FINANCE LLC, a Delaware limited liability company (the
"LENDER").

                                    RECITALS

     A. Pursuant to that certain Second Amended and Restated Revolving Credit,
Term Loan and Security Agreement dated as of March 29, 2004, by and between
Opticare Health Systems, Inc., Opticare Eye Health Centers, Inc. and Primevision
Health, Inc., each as borrower, and Lender as amended by that certain Waiver and
First Amendment to Second Amended and Restated Revolving Credit, Term Loan and
Security Agreement dated as of August 16, 2004 and that certain Second Amendment
to Second Amended and Restated Revolving Credit, Term Loan and Security
Agreement dated as of August 27, 2004 (as amended to date and as amended,
supplemented, modified and restated from time to time, collectively, the "LOAN
AGREEMENT"), the Lender agreed to make available to such borrowers the Revolving
Facility.

     B. The parties hereto desire to enter into this Amendment to amend certain
aspects of the Loan Agreement as more particularly provided herein.

     NOW, THEREFORE, in consideration of the foregoing, the terms and
conditions, premises and other mutual covenants set forth in this Amendment, and
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, Lender and Borrower hereby agree as follows:

     SECTION 1. DEFINITIONS. Unless otherwise defined herein, all capitalized
terms used and not defined herein shall have the meanings assigned to such terms
in the Loan Agreement.

     SECTION 2. AMENDMENTS TO LOAN AGREEMENT.

          (a) Tangible Net Worth. Section 2 of Annex I to the Loan Agreement is
     hereby amended and restated in its entirety as follows:

               "Until full performance and satisfaction, and indefeasible
          payment in full in cash, of all the Obligations, Borrower,
          individually and collectively on a consolidated and consolidating
          basis, will maintain a minimum Tangible Net Worth at all times (a)
          from the December 1, 2004 through January 31, 2005, equal to
          (-$6,500,000), and (b) from February 1, 2005 through the end of the
          Term, equal to (-$3,000,000).

          (b) Definition. Appendix A to the Loan Agreement is hereby amended by
     adding the following definition thereto in proper alphabetical order to
     read in full as follows:

               "Third Amendment" shall mean that certain Third Amendment to
          Second Amended and Restated Revolving Credit, Term Loan and Security
          Agreement, dated as of January ____, 2005, by and between the
          Borrowers and Lender.

          (c) Application of Wise Sale Proceeds and Third Amendment Required
     Equity Contribution. Notwithstanding anything contained in the Loan
     Agreement to the contrary, the Wise Required Payment (as defined in the
     Third Amendment) and any other proceeds from the Wise Sale, including any
     subsequent increase in the purchase price, shall be applied first to the
     Term Loan in the amount of $50,000, which shall be applied in the inverse
     order of its maturity, and second to the Advances under the Revolving
     Facility (other than the Overadvance). Notwithstanding anything contained
     in the Loan Agreement to the contrary, the Third Amendment Required Equity
     Contribution shall be applied to the Advances under the Revolving Facility
     (other than the Overadvance).

     SECTION 3. CONSENT. As of the Third Amendment Effective Date, Lender hereby
consents to (a) the sale of assets by OptiCare Acquisition Corp. ("OAC") (the
"Wise Sale") pursuant to that certain Asset Purchase Agreement, dated as of
January ____, 2005, by and between Wise Optical, LLC and AECC/Pearlman Buying
Group, LLC, as purchaser, and OAC, as seller, a copy of which is attached hereto
as Exhibit A (the "Wise APA") and (b) the execution and delivery of the Wise APA
by OAC; provided (i) that the Wise APA has not been amended in any manner from
the version attached hereto as Exhibit A, (ii) Lender shall have received
evidence satisfactory to it in its sole discretion that all of the conditions
precedent in the Wise APA have been satisfied, (iii) Lender shall have received
a payment on the Loans from the proceeds of the Wise Sale in an amount of at
least $2,500,000 ("Wise Required Payment"), which shall be applied first to the
Term Loan in the amount of $50,000, which shall be applied in the inverse order
of its maturity, and second to Advances under the Revolving Facility (other than
the Overadvance), and (iv) that the consent of Lender hereunder shall not, in
any way whatsoever, either: (x) impair, prejudice or otherwise adversely affect
Lender's right at any time to exercise any right, privilege or remedy in
connection with any violation of the Loan Agreement or any other Loan Document,
(y) except as otherwise set forth herein, amend or alter any provision of the
Loan Agreement or any other Loan Document, or (z) constitute any course of
dealing or other basis for altering any of the Obligations or any right,
privilege or remedy of Lender under the Loan Agreement or any other Loan
Document.

     SECTION 4. REPRESENTATIONS AND WARRANTIES.

          (a) Notwithstanding any other provision of this Amendment, each
     Borrower hereby (a) confirms and makes all of the representations and
     warranties set forth in the Loan Agreement and other Loan Documents with
     respect to such Borrower and this Amendment and confirms that they are true
     and correct, (b) represents and warrants that they are Affiliates of each
     other, and (c) specifically represents and warrants to Lender that it has
     good and marketable title to all of its respective Collateral, free and
     clear of any Lien or security interest in favor of any other Person (other
     than Permitted Liens).

          (b) Each Borrower hereby represents and warrants as of the date of
     this Amendment and as of the Third Amendment Effective Date as follows: (i)
     it is duly incorporated or organized, validly existing and in good standing
     under the laws of its jurisdiction of organization; (ii) the execution,
     delivery and performance by it of this Amendment and the Loan Documents, as
     applicable, are within its powers, have been duly authorized, and do not
     contravene (A) its articles of organization, operating agreement, or other
     organizational documents, or (B) any applicable law; (iii) no consent,
     license, permit, approval or authorization of, or registration, filing or
     declaration with any Governmental Authority or other Person, is required in
     connection with the execution, delivery, performance, validity or
     enforceability of this Amendment or the Loan Documents, as applicable, by
     or against it; (iv) this Amendment and the Loan Documents, as applicable,
     have been duly executed and delivered by it; (v) this Amendment and the
     Loan

     Documents, as applicable, constitute its legal, valid and binding
     obligations enforceable against it in accordance with its terms, except as
     enforceability may be limited by applicable bankruptcy, insolvency,
     reorganization, moratorium or similar laws affecting the enforcement of
     creditors' rights generally or by general principles of equity; and (vi) it
     is not in default under the Loan Agreement and no Default or Event of
     Default exists, has occurred or is continuing.

     SECTION 5. EXPENSES. Borrower shall pay all costs and expenses incurred by
Lender or any of its Affiliates, including, without limitation, documentation
and diligence fees and expenses, all search, audit, appraisal, legal, recording,
professional and filing fees and expenses and all other out-of-pocket charges
and expenses (including, without limitation, UCC and judgment and tax lien
searches and UCC filings and fees for post-Closing UCC and judgment and tax lien
searches) in connection with entering into, negotiating, preparing, reviewing
and executing this Amendment and the Loan Documents contemplated hereby and all
related agreements, documents and instruments, including, without limitation,
the UCC-1 Financing Statements and searches required hereunder and under the
Loan Agreement, and all of the same may be charged to Borrower's account and
shall be part of the Obligations. In addition and without limiting the
foregoing, Borrower shall pay all taxes (other than taxes based upon or measured
by Lender's income or revenues or any personal property tax), if any, in
connection with the issuance of the amended note and the recording of the
security documents and financing statements therefor and pursuant to the
Security Documents contemplated hereby.

     SECTION 6. REFERENCE TO THE EFFECT ON THE LOAN AGREEMENT. Upon the
effectiveness of this Amendment, (i) each reference in the Loan Agreement to
"this Agreement," "hereunder," "hereof," "herein" or words of similar import
shall mean and be a reference to the Loan Agreement as amended by this
Amendment, and (ii) each reference in any other Loan Document to the "Loan
Agreement" shall mean and be a reference to the Loan Agreement as amended by
this Amendment. Each reference herein to the Loan Agreement shall be deemed to
mean the Loan Agreement as amended by this Amendment. Except as specifically
amended hereby, the Loan Agreement and all other Loan Documents shall remain in
full force and effect and the terms thereof are expressly incorporated herein
and are ratified and confirmed in all respects. This Amendment is not intended
to be or to create, nor shall it be construed as or constitute, a novation or an
accord and satisfaction but shall constitute an amendment of the Loan Agreement.
The parties hereto agree to be bound by the terms and conditions of the Loan
Agreement as amended by this Amendment as though such terms and conditions were
set forth herein in full. The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided in this Amendment, operate as
a waiver of any right, power or remedy of Lender, nor constitute a waiver of any
provision of the Loan Agreement or any other Loan Document or any other
documents, instruments and agreements executed or delivered in connection
therewith or of any Default or Event of Default under any of the foregoing
whether arising before or after the Third Amendment Effective Date or as a
result of performance hereunder.

     SECTION 7. GOVERNING LAW AND JURY TRIAL. THIS AMENDMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE CHOICE OF LAW PROVISIONS SET
FORTH IN THE LOAN AGREEMENT AND SHALL BE SUBJECT TO THE WAIVER OF JURY TRIAL AND
NOTICE PROVISIONS OF THE LOAN AGREEMENT.

     SECTION 8. HEADINGS AND COUNTERPARTS. The captions in this Amendment are
intended for convenience and reference only and do not constitute and shall not
be interpreted as part of this Amendment and shall not affect the meaning or
interpretation of this Amendment. This Amendment may be executed in one or more
counterparts, all of which taken together shall constitute but one and the same
instrument. This Amendment may be executed by facsimile transmission, which
facsimile signatures

shall be considered original executed counterparts for all purposes, and each
party to this Amendment agrees that it will be bound by its own facsimile
signature and that it accepts the facsimile signature of each other party to
this Amendment.

     SECTION 9. AMENDMENTS. This Amendment may not be changed, modified,
amended, restated, waived, supplemented, discharged, canceled or terminated
orally or by any course of dealing or in any other manner other than by the
written agreement of Lender and both Borrowers. This Amendment shall be
considered part of the Loan Agreement for all purposes under the Loan Agreement.

     SECTION 10. ENTIRE AGREEMENT. This Amendment, the Loan Agreement and the
other Loan Documents constitute the entire agreement between the parties with
respect to the subject matter hereof and thereof and supersedes all prior
agreements and understandings, if any, relating to the subject matter hereof and
thereof and may not be contradicted by evidence of prior, contemporaneous or
subsequent oral agreements between the parties. There are no unwritten oral
agreements between the parties.

     SECTION 11. MISCELLANEOUS. Whenever the context and construction so
require, all words used in the singular number herein shall be deemed to have
been used in the plural, and vice versa, and the masculine gender shall include
the feminine and neuter and the neuter shall include the masculine and feminine.
This Amendment shall inure to the benefit of Lender, all future holders of any
note, any of the Obligations or any of the Collateral and all Transferees, and
each of their respective successors and permitted assigns. No Borrower may
assign, delegate or transfer this Amendment or any of its rights or obligations
under this Amendment without the prior written consent of Lender. No rights are
intended to be created under this Amendment for the benefit of any third party
donee, creditor or incidental beneficiary of Borrower or any Guarantor. Nothing
contained in this Amendment shall be construed as a delegation to Lender of any
Borrower's or any Guarantor's duty of performance, including, without
limitation, any duties under any account or contract in which Lender has a
security interest or Lien. This Amendment shall be binding upon Borrowers and
their respective successors and assigns.

     SECTION 12. RELEASE. (i) EACH BORROWER HEREBY ACKNOWLEDGES AND AGREES THAT
IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY
KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY
PART OF ITS LIABILITY TO REPAY THE OBLIGATIONS OR TO SEEK AFFIRMATIVE RELIEF OR
DAMAGES OF ANY KIND OR NATURE FROM LENDER. EACH BORROWER HEREBY VOLUNTARILY AND
KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER AND EACH OF ITS PREDECESSORS,
AGENTS, EMPLOYEES, AFFILIATES, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE
"RELEASED PARTIES") FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF
ACTION, DAMAGES, COSTS, EXPENSES AND LIABILITIES WHATSOEVER, WHETHER KNOWN OR
UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED,
CONTINGENT OR CONDITIONAL, OR AT LAW OR IN EQUITY, IN ANY CASE ORIGINATING IN
WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED THAT ANY
BORROWER MAY NOW OR HEREAFTER HAVE AGAINST THE RELEASED PARTIES, IF ANY,
IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION
OF LAW OR REGULATIONS, OR OTHERWISE, AND THAT ARISE FROM ANY OF THE LOANS, THE
EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR ANY OF THE OTHER
LOAN DOCUMENTS, AND/OR THE NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT,
INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING,
COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE
APPLICABLE.

     SECTION 13. EFFECTIVE DATE. Notwithstanding the date of execution or
delivery of this Amendment or any other date set forth herein, this Amendment
shall be effective on the date (the "THIRD AMENDMENT EFFECTIVE DATE") upon which
the following conditions precedent are satisfied:

          (a) execution and delivery to Lender of this Amendment by each
     Borrower;

          (b) receipt of an executed copy of the Wise APA and all documents
     related thereto, together with confirmation of the consummation of the
     transactions contemplated thereby;

          (c) receipt by Lender of the Wise Required Payment;

          (d) the representations and warranties contained herein and in all
     other Loan Documents shall be true and correct in all respects as of the
     date hereof, except for such representations and warranties limited by
     their terms to a specific date;

          (e) no Default or Event of Default shall be in existence as of the
     date hereof;

          (f) receipt by Lender of all fees, charges and expenses payable to
     Lender on or prior to the Third Amendment Effective Date, including,
     without limitation, a non-refundable amendment fee in the amount of
     $12,500; and

          (g) receipt by Lender of evidence satisfactory to Lender of a cash
     equity investment in Borrower by Palisade Concentrated Equity Partnership,
     L.P. of at least $4,000,000 in form and substance acceptable to Lender (the
     "Third Amendment Required Equity Contribution").

                        [SIGNATURES APPEAR ON NEXT PAGE]

          IN WITNESS WHEREOF, the parties have caused this Third Amendment to
Second Amended and Restated Revolving Credit, Term Loan and Security Agreement
to be executed by their respective officers thereunto duly authorized as of the
date first written above.

LENDER:                                 CAPITALSOURCE FINANCE LLC,
                                        a Delaware limited liability company

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

BORROWERS:

                                        OPTICARE HEALTH SYSTEMS, INC.,
                                        a Delaware corporation

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        PRIMEVISION HEALTH, INC.,
                                        a Delaware corporation

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        OPTICARE EYE HEALTH CENTERS, INC.,
                                        a Connecticut corporation

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        OPTICARE ACQUISTION CORP.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                    EXHIBIT A

                                    WISE APA
                                 (see attached)EXECUTION COPY

                   SERIES D PREFERRED STOCK PURCHASE AGREEMENT

     THIS SERIES D PREFERRED STOCK PURCHASE AGREEMENT (the "Agreement") is
entered into as of January 12, 2005, by and among OptiCare Health Systems, Inc.
(the "Company"), a Delaware corporation, Palisade Concentrated Equity
Partnership, L.P. ("Palisade") and Linda Yimoyines ("Ms. Yimoyines" and
collectively with Palisade, the "Purchasers").

     WHEREAS, the Company desires to issue and sell to the Purchasers an
aggregate of 280,618 shares (the "Shares") of its Series D Preferred Stock, par
value $.001 per share (the "Series D Preferred Stock"); and

     WHERAS, the Purchasers, severally, wish to purchase the Shares on the terms
and subject to the conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the premises and mutual covenants
contained in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

     SECTION 1 PURCHASE OF SHARES.

     1.1 Purchase of Shares and Closing. Contemporaneously with the execution
hereof, the Company shall issue and sell to the Purchasers, and each Purchaser,
severally but not jointly, shall purchase from the Company, the number of Shares
set forth opposite its name on Schedule A attached hereto under the caption
"Shares" at a purchase price of $15.84 per Share, at a closing to take place at
the offices of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. Upon the date
of such closing, the Company shall deliver to each Purchaser a stock certificate
representing the Shares, registered in the name of such Purchaser. The Company's
obligation to issue and deliver the Shares shall be subject to the receipt by
the Company of a certified or official bank check or checks or wire transfer of
funds in the full amount of the purchase price for the Shares.

     SECTION 2 COMPANY REPRESENTATIONS AND WARRANTIES.

     The Company hereby represents and warrants to the Purchasers as follows:

     2.1 Organization. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware. The
Company has full power and authority to own and operate its properties and
assets, and to carry on its business as presently conducted. The Company is duly
qualified, is authorized to do business and is in good standing as a foreign
corporation in all jurisdictions in which the nature of its activities and of
its properties (both owned and leased) makes such qualification necessary,
except for those jurisdictions, in the aggregate, in which failure to do so
would not have a material adverse effect on the Company or its business.

     2.2 Authority. The Company (i) has the right and power under its
Certificate of

Incorporation and Bylaws to execute, deliver and perform its obligations
hereunder; (ii) this Agreement has been duly authorized by all necessary
corporate or action, and (iii) the officer executing and delivering this
Agreement has the requisite right, power, capacity and authority to do so on
behalf of such corporation.

     2.3 Capitalization. Immediately prior to the consummation of the
transactions contemplated by this Agreement, the authorized capital stock of the
Company consists of (i) 150,000,000 shares of Common Stock, par value $.001 per
share (the "Common Stock"), of which a total of 30,642,567 shares of Common
Stock are issued and outstanding, and (ii) 5,000,000 shares of Preferred Stock,
par value $.001 per share, of which (a) 550,000 shares are designated as Series
A Convertible Preferred Stock, par value $.001 per share, of which no shares are
issued and outstanding, (b) 3,500,000 shares are designated as Series B 12.5%
Voting Cumulative Convertible Participating Preferred Stock, par value $.001 per
share (the "Series B Preferred Stock"), of which 3,204,959.8 shares are issued
and outstanding, (c) 406,158 shares are designated Series C Preferred Stock, par
value $.001 per share (the "Series C Preferred Stock"), all of which shares are
issued and outstanding, and (d) 280,618 shares are designated Series D Preferred
Stock, par value $.001 per share, of which no shares are issued and outstanding,
and (A) except for the outstanding shares of Series B Preferred Stock and Series
C Preferred Stock and as set forth on Schedule 2.3 attached hereto, there is no
existing option, warrant, call, commitment or other agreement to which the
Company is a party requiring, and there are no convertible securities of the
Company outstanding which upon conversion would require, the issuance of any
additional shares of stock of the Company or other securities convertible into
shares of equity securities of the Company; (B) except as set forth in the
Company's Certificate of Incorporation and Bylaws, there are no agreements to
which the Company is a party or, to the knowledge of the Company, to which any
stockholder or warrant holder of the Company is a party in its capacity as such,
with respect to the voting or transfer of stock of the Company; (C) except as
set forth on Schedule 2.3, there are no stockholders' preemptive rights or
rights of first refusal or other similar rights with respect to the issuance of
stock by the Company; and (D) true and correct copies of the Certificates of
Incorporation and Bylaws of the Company, as currently in effect, have been
delivered to counsel to Palisade.

     2.4 Validity of Shares. The Shares, when issued, sold and delivered in
accordance with the terms of this Agreement, will be duly authorized, validly
issued and fully paid and non-assessable, free and clear of all pledges, liens,
encumbrances and preemptive rights, and the issuance upon conversion of the
Shares in accordance with the terms of the Company's Certificate of
Incorporation, the Common Stock issuable upon conversion of the Shares will be
duly and validly issued, fully paid and nonassessable and will be free of free
and clear of al pledges, liens, encumbrances and preemptive rights.

     2.5 Compliance with Laws. With regard to the consummation of the
transactions contemplated by this Agreement, the Company has complied with (i)
all laws, statutes, governmental regulations, judicial or administrative
tribunal orders, judgments, writs, injunctions, decrees, stock exchange rules
(including the listing of the Common Stock issuable upon conversion of the
Shares on The American Stock Exchange) and similar commands applicable to it and
its business, and all unwaived terms and provisions of all agreements,
instruments, and commitments to which it is a party or to which it or any of its
assets or

                                       2

properties is subject, except for any noncompliances that, both individually and
in the aggregate, have not had and could not reasonably be expected to have a
material adverse effect on the Shares or the Company's business, assets,
operations or financial condition, and (ii) its Certificate of Incorporation and
Bylaws, as currently in effect.

     2.6 Financial Statements. The unaudited consolidated balance sheet of the
Company as of September 30, 2004, and the related consolidated statements of
operations and cash flows for the periods then ended (the "Financial
Statements"), have been, except as noted therein, prepared in conformity with
generally accepted accounting principles consistently applied throughout the
periods involved and present fairly in all material respects the consolidated
financial position of the Company as at the dates thereof, and the consolidated
results of its operations and cash flows for the periods then ended, and except
as set forth on Schedule 2.6 attached hereto, the Company does not have any
material obligations contingent or otherwise, including, without limitation,
liabilities for charges, long-term leases or unusual forward or long-term
commitments, other than those incurred since September 30, 2004, in the ordinary
course of business.

     SECTION 3 REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS.

     Each Purchaser hereby represents and warrants to the Company as follows:

     3.1 Accredited Investor. Such Purchaser is an "accredited investor" as such
term is defined in Rule 501 of Regulation D under the Securities Act and is a
sophisticated investor and has such knowledge and experience in financial, tax,
business matters, securities and investments including, without limitation,
experience in investments such as the purchase of the Shares, as to enable such
Purchaser to utilize the information made available to it in connection with the
sale of the Shares, to evaluate the merits and risks of an investment in the
Shares and to make an informed investment decision with respect thereto.

     3.2 Access to Information. Prior to the execution of this Agreement, such
Purchaser has had the opportunity to ask questions of and receive answers from
representatives of the Company concerning the finances, operations, business and
prospects of the Company.

     3.3 Registration and Legends. Such Purchaser understands that the Shares
are not being registered under the Securities Act of 1933, as amended (the
"Securities Act"), and are not being registered under any state "blue sky"
securities laws, and the Shares may not be transferred except in compliance with
such laws. Such Purchaser understands that until the Shares have been registered
under the Securities Act and applicable state securities laws each certificate
representing such Shares shall bear legends substantially similar to the
following:

          THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
          SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE
          SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN
          EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH
          SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144

                                       3

          UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE
          HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY,
          STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS
          EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF
          SUCH ACT.

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE OWNED BY A PERSON
          OR PERSONS WHO MAY BE CONSIDERED AN AFFILIATE FOR PURPOSES OF RULE 144
          UNDER THE SECURITIES ACT. NO TRANSFER OF THESE SECURITIES OR ANY
          INTEREST THEREIN MAY BE MADE UNLESS THE ISSUER HAS RECEIVED AN OPINION
          OF COUNSEL SATISFACTORY TO IT THAT SHARES MAY BE SOLD PURSUANT TO RULE
          144 OR ANOTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT AND THE
          RULES AND REGULATIONS THEREUNDER.

     3.4 Investment Intent. Such Purchaser is acquiring the Shares solely for
its own account for investment and not with a view to, or for resale in
connection with, any distribution thereof and has no present intention of
transferring, distributing or selling the Shares to any other person or entity.

     3.5 Reliance on Representations and Warranties. The representations of such
Purchaser contained herein are accurate and may be relied upon by the Company in
determining the availability of an exemption from registration under the
Securities Act and state securities laws in connection with the offering and
sale of the Shares.

     3.6 Palisade Authority. Palisades only hereby represents and warrants to
the Company that (i) it has the right and power under its organizational
documents to execute, deliver and perform its obligations hereunder; (ii) this
Agreement has been duly authorized by all necessary partnership action, and
(iii) the officer executing and delivering this Agreement has the requisite
right, power, capacity and authority to do so on behalf of such partnership.

     3.7 Ms. Yimoyines Authority. Ms. Yimoyines only hereby represents and
warrants to the Company that she has the legal capacity to execute this
Agreement.

     SECTION 4 OTHER AGREEMENTS.

     4.1 Consent to Actions. The undersigned, as the holders of all of the
issued and outstanding shares of Series B Preferred Stock and Series C Preferred
Stock, hereby consent to the filing of the Certificate of Designations, Rights
and Preferences of the Series D Preferred Stock and to the issuance of the
Shares in accordance hereof.

     4.2 Further Assurances. The Purchasers will execute and deliver to the
Company any writings and do all things necessary or reasonably requested by the
Company to carry into effect the provisions and intent of this Agreement.

                                       4

     4.3 Expenses. The Company shall reimburse the Purchasers for all reasonable
out-of-pocket expenses, including reasonable fees and disbursements of
Palisade's counsel, up to $10,000, in connection with the transactions
contemplated by this Agreement.

     4.4 Notices. All notices, requests, consents and other communications
hereunder shall be in writing, shall be addressed to the receiving party's
address set forth below their signatures below or to such other address as a
party may designate by notice hereunder, and shall be either (i) delivered by
hand, (ii) made by telecopy or facsimile transmission, (iii) sent by overnight
courier providing evidence of delivery, or (iv) sent by registered mail, return
receipt requested, postage prepaid. All notices, requests, consents and other
communications hereunder shall be deemed to have been given either (i) if by
hand, at the time of the delivery thereof to the receiving party at the address
of such party set forth above, (ii) if made by telecopy or facsimile
transmission, at the time that receipt thereof has been acknowledged by
electronic confirmation or otherwise, (iii) if sent by overnight courier, on the
next business day following the day such notice is delivered to the courier
service, or (iv) if sent by registered mail, on the 5th business day following
the day such mailing is made.

     4.5 Entire Agreement. This Agreement embodies the entire agreement and
understanding between the Purchasers and the Company with respect to the subject
matter hereof and supersedes all prior oral or written agreements and
understandings relating to the subject matter hereof. No statement,
representation, warranty, covenant or agreement of any kind not expressly set
forth in this Agreement shall affect, or be used to interpret, change or
restrict, the express terms and provisions of this Agreement.

     4.6 Modifications and Amendments. The terms and provisions of this
Agreement may be modified or amended only by written agreement executed by all
parties hereto.

     4.7 Waivers and Consents. The terms and provisions of this Agreement may be
waived, or consent for the departure therefrom granted, only by written document
executed by the party entitled to the benefits of such terms or provisions. No
such waiver or consent shall be deemed to be or shall constitute a waiver or
consent with respect to any other terms or provisions of this Agreement, whether
or not similar. Each such waiver or consent shall be effective only in the
specific instance and for the purpose for which it was given, and shall not
constitute a continuing waiver or consent.

     4.8 Assignment. The rights an obligations under this Agreement may not be
assigned by any party hereto (whether by operation of law or otherwise) without
the prior written consent of the other parties; provided, however, that any
party may assign its rights and obligations hereunder to any person or entity
who succeeds to all or substantially all its business by merger, consolidation
or purchase of all or substantially all of its assets.

     4.9 Benefit. All statements, representations, warranties, covenants and
agreements in this Agreement shall be binding on the parties hereto and shall
inure to the benefit of the respective successors and permitted assigns of each
party hereto. Nothing in this Agreement

                                       5

shall be construed to create any rights or obligations except among the parties
hereto, and no person or entity shall be regarded as a third-party beneficiary
of this Agreement.

     4.10 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York governing contracts to be made
and performed therein without giving effect to principles of conflicts of law,
and, with respect to any dispute arising out of this Agreement, each party
hereby consents to the exclusive jurisdiction of the courts sitting in such
State.

     4.11 Severability. In the event that any court of competent jurisdiction
shall determine that any provision, or any portion thereof, contained in this
Agreement shall be unreasonable or unenforceable in any respect, then such
provision shall be deemed limited to the extent that such court deems it
reasonable and enforceable, and as so limited shall remain in full force and
effect. In the event that such court shall deem any such provision, or portion
thereof, wholly unenforceable, the remaining provisions of this Agreement shall
nevertheless remain in full force and effect.

     4.12 Headings and Captions. The headings and captions of the various
subdivisions of this Agreement are for convenience of reference only and shall
in no way modify, or affect the meaning or construction of any of the terms or
provisions hereof.

     4.13 Survival of Representations and Warranties. The parties hereto agree
that all representations and warranties made herein shall survive for one year
after the date hereof other than the representations and warranties of the
Company set forth in Sections 2.2, 2.4 and 2.5, which shall survive
indefinitely.

     4.14 Counterparts. This Agreement may be executed in one or more
counterparts, and by different parties hereto on separate counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

            [The remainder of this page is intentionally left blank.]

                                       6

     IN WITNESS WHEREOF, the undersigned have executed this Series D Preferred
Stock Purchase Agreement as of January 12, 2005.

                                  OPTICARE HEALTH SYSTEMS, INC.

                                  By:
                                      ------------------------------------------
                                  Name:
                                  Title:

                                  Address:
                                           -------------------------------------

                                  ----------------------------------------------

                                  ----------------------------------------------

                                  PALISADE CONCENTRATED EQUITY PARTNERSHIP, L.P.

                                  By: Palisade Concentrated Holdings, LLC
                                      General Partner

                                  By:
                                      ------------------------------------------
                                  Name:
                                  Title:

                                  Address:
                                           -------------------------------------

                                  ----------------------------------------------

                                  ----------------------------------------------

                                  ----------------------------------------------
                                  Linda Yimoyines

                                  Address:
                                           -------------------------------------

                                  ----------------------------------------------

                                  ----------------------------------------------

                                       7

                                   SCHEDULE A

                            SHARES AND PURCHASE PRICE

--------------------------------------------------------------------------------
          PURCHASER                           SHARES              PURCHASE PRICE
--------------------------------------------------------------------------------
Palisade Concentrated Equity
Partnership, L.P.                            252,525               $3,999,996.00
--------------------------------------------------------------------------------
Linda Yimoyines                               28,093               $  444,993.12
--------------------------------------------------------------------------------

                                        8

                                  SCHEDULE 2.3

                                 CAPITALIZATION

1. The Company has issued, and there are currently outstanding, warrants to
purchase up to an aggregate of 3,125,000 shares of Common Stock.

2. The Company is currently obligated to issue up to an aggregate of 6,076,685
shares of Common Stock upon the exercise of options issued under the Company's
various stock plans.

                                       9

                                  SCHEDULE 2.6

                              FINANCIAL STATEMENTS

After the sale of the Company's Wise Optical and Buying Group business units to
Dean Yimoyines and his affiliates, the Company will remain obligated under the
lease obligations for the facility located at 4 Executive Plaza, Yonkers, New
York. The lease expires on July 31, 2011. In connection with this obligation,
the Company expects to book an approximate $1,300,000 liability.

                                       10

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