Document:

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                                                                  EXECUTION COPY

                        WARRANT TO PURCHASE COMMON STOCK
                                       OF
                          OPTICARE HEALTH SYSTEMS, INC.

                           Void after January 2, 2006

                    THE SALE, TRANSFER, ASSIGNMENT, PLEDGE OR
                    HYPOTHECATION OF THE WARRANT REPRESENTED
                    BELOW IS SUBJECT TO THE REGISTRATION
                    REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS
                    AMENDED (THE "ACT"). THIS WARRANT MAY NOT BE
                    SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR
                    HYPOTHECATED UNLESS DULY REGISTERED UNDER
                    THE ACT OR UNLESS, IN THE OPINION OF COUNSEL
                    REASONABLY SATISFACTORY TO THE COMPANY, SUCH
                    TRANSACTION IS EXEMPT FROM THE REGISTRATION
                    PROVISIONS OF THE ACT.

This certifies that, for value received,                          ("Holder") is
entitled, subject to the terms set forth below, to purchase from OPTICARE HEALTH
SYSTEMS, INC., a Delaware corporation (the "Company"),
shares of Common Stock of the Company, par value $.001 per share (the
"Common Stock"), as constituted on the date hereof (the "Warrant Issue Date"),
upon surrender hereof, at the principal office of the Company referred to below,
with the Notice of Exercise form attached hereto duly executed, and simultaneous
payment therefor in lawful money of the United States or otherwise as
hereinafter provided, at the Exercise Price set forth in Section 2 below. The
number, character and Exercise Price of such shares of Common Stock are subject
to adjustment as provided below. The term "Warrant" as used herein shall include
this Warrant and any warrants delivered in substitution or exchange therefor as
provided herein.

This Warrant is issued in connection with the transactions described in that
certain Warrant Agreement dated as of October 10, 2000, as amended, by and
between the Company and the Holder (the "Warrant Agreement").

        1. Terms of Warrant. Subject to the terms and conditions set forth
herein, this Warrant shall be exercisable in whole or in part, during the term
commencing thirty (30) days following the Warrant Issue Date and ending at 5:00
p.m., Eastern Daylight Time, on January 2, 2006, and shall be void thereafter.

        2. Exercise Price. The exercise price at which this Warrant may be
exercised shall be      per share of Common Stock, as adjusted from time to
time pursuant to Section 10 hereof (the "Exercise Price").

        3. Exercise of Warrant.

                (a) The purchase rights represented by this Warrant are
        exercisable by the Holder in whole or in part, but not for more than the
        number of shares which may

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        then constitute the maximum number purchasable (such number being
        subject to adjustment as provided in Section 10 below), at any time, or
        from time to time, during the term hereof as described in Section 1
        above, by the surrender of this Warrant and the Notice of Exercise
        annexed hereto duly completed and executed on behalf of the Holder, at
        the office of the Company (or such other office or agency of the Company
        as it may designate by notice in writing to the Holder at the address of
        the Holder appearing on the books of the Company), upon payment (i) in
        cash or by check acceptable to the Company, (ii) by cancellation by the
        Holder of indebtedness or other obligations of the Company to the
        Holder, or (iii) by a combination of (i) and (ii), of the purchase price
        of the shares of Common Stock to be purchased.

                (b) This Warrant shall be deemed to have been exercised
        immediately prior to the close of business on the date of its surrender
        for exercise as provided above, and the person entitled to receive the
        shares of Common Stock issuable upon such exercise shall be treated for
        all purposes as the holder of record of such shares as of the close of
        business on such date. As promptly as practicable on or after such date,
        the Company at its expense shall issue and deliver to the person or
        persons entitled to receive the same a certificate or certificates for
        the number of shares of Common Stock issuable upon such exercise. In the
        event that this Warrant is exercised in part, the Company at its expense
        will execute and deliver a new Warrant of like tenor exercisable for the
        number of shares for which this Warrant may then be exercised.

        4. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. In lieu of any fractional share to which the Holder would otherwise be
entitled, the Company shall make a cash payment equal to the Exercise Price
multiplied by such fraction.

        5. Replacement of Warrant. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of loss, theft or destruction, on delivery of an
indemnity agreement reasonably satisfactory in form and substance to the
Company, or in the case of mutilation, on surrender and cancellation of this
Warrant, the Company at its expense shall execute and deliver, in lieu of this
Warrant, a new Warrant of like tenor and amount.

        6. Rights of Stockholders. This Warrant shall not entitle its Holder to
any of the rights of a stockholder of the Company.

        7. Reservation of Stock. The Company covenants that during the term this
Warrant is exercisable, the Company will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Common Stock upon the exercise of this Warrant and, from time to time, will
take all steps necessary to amend its certificate of incorporation as amended
(the "Certificate"), to provide sufficient reserves of shares of Common Stock
issuable upon exercise of the Warrant. The Company further covenants that all
shares that may be issued upon the exercise of rights represented by this
Warrant and payment of the Exercise Price, all as set forth herein, will be free
from all taxes, liens and charges in respect of the issue thereof (other than
taxes in respect of any transfer

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occurring contemporaneously or otherwise specified herein). The Company agrees
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for shares of Common Stock upon the
exercise of this Warrant.

        8. Notices.

                (a) Whenever the Exercise Price or number of shares of Common
        Stock purchasable hereunder shall be adjusted pursuant to Section 10
        hereof, the Company shall issue a certificate signed by its Chief
        Financial Officer setting forth, in reasonable detail, the event
        requiring the adjustment, the amount of the adjustment, the method by
        which such adjustment was calculated, and the Exercise Price and number
        of shares purchasable hereunder after giving effect to such adjustment,
        and shall cause a copy of such certificate to be mailed (by first-class
        mail, postage prepaid) to the Holder of this Warrant.

                (b) In case:

                (i) the Company shall take a record of the holders of its Common
          Stock (or other stock or securities at the time receivable upon the
          exercise of this Warrant) for the purpose of entitling them to receive
          any dividend or other distribution, or any right to subscribe for or
          purchase any shares of stock of any class or any other securities, or
          to receive any other right, or

                (ii) of any capital reorganization of the Company, any
          reclassification of the capital stock of the Company, any
          consolidation or merger of the Company with or into another
          corporation, or any conveyance of 51% of the assets of the Company to
          another corporation, or

                (iii) of any voluntary dissolution, liquidation or winding-up of
          the Company,

then, and in each such case, the Company will mail or cause to be mailed to the
Holder a notice specifying, as the case may be (A) the date on which a record is
to be taken for the purpose of such dividend, distribution or right, and stating
the amount and character of such dividend, distribution or right, or (B) the
date on which such reorganization, reclassification, consolidation, merger,
conveyance, dissolution, liquidation or winding-up is to take place, and the
time, if any is to be fixed, as of which the holders of record of Common Stock
shall be entitled to exchange their shares of Common Stock for securities or
other property deliverable upon such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such
notice shall be mailed at least 15 days prior to the date therein specified.

          (c) All notices and other communications required or permitted
     hereunder shall be in writing and shall be (i) mailed by registered or
     certified mail, postage prepaid, (ii) delivered by reliable overnight
     courier service, (iii) in the case of a fax delivered to the addressee with
     confirmed answer back on a business day during normal business hours, or
     (iv) otherwise delivered by hand or by messenger, addressed

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     (A) if to the Warrant Recipient, to such Warrant Recipient's address set
     forth above, or at such other address as such Warrant Recipient shall have
     furnished to the Company in writing or (B) if to the Company, to the
     address set forth above to the attention of the Secretary, or at such other
     address as the Company shall have furnished to the Warrant Recipient in
     writing.

          9. Amendment.

             (a) This Warrant may not be amended except upon the written consent
     of the Company and the Holder. Any amendment effected in accordance with
     this Section 9 shall be binding upon each future holder of this Warrant and
     the Company.

             (b) No waivers of, or exceptions to, any term, condition or
     provision of this Warrant, in any one or more instances, shall be deemed to
     be, or construed as, a further or continuing waiver of any such term,
     condition or provision.

          10. Adjustments. The Exercise Price and the number of shares
purchasable hereunder are subject to adjustment from time to time as follows:

                10.1 Merger, Sales of Assets, etc. If at any time while this
Warrant, or any portion thereof, is outstanding and unexpired there shall be (i)
a reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), (ii) a merger or
consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, or a reverse triangular merger in which the
Company is the surviving entity but the shares of the Company's capital stock
outstanding immediately prior to the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash, or
otherwise, or (iii) a sale or transfer of the Company's properties and assets,
as or substantially as, an entirety to any other person, then, as a part of such
reorganization, merger, consolidation, sale or transfer, lawful provision shall
be made so that the holder of this Warrant shall thereafter be entitled to
receive upon exercise of this Warrant, during the period specified herein and
upon payment of the Exercise Price then in effect, the number of shares of stock
or other securities or property of the successor corporation resulting from such
reorganization, merger, consolidation, sale or transfer that a holder of the
shares deliverable upon exercise of this Warrant would have been entitled to
receive in such reorganization, consolidation, merger, sale or transfer if this
Warrant had been exercised immediately before such reorganization, merger,
consolidation, sale or transfer, all subject to further adjustment as provided
in this Section 10. The foregoing provisions of this Section 10.1 shall
similarly apply to successive reorganization, consolidations, mergers, sales and
transfers and to the stock or securities of any other corporation that are at
the time receivable upon the exercise of this Warrant. If the per-share
consideration payable to the holder hereof for shares in connection with any
such transaction is in a form other than cash or marketable securities, then the
value of such consideration shall be determined in good faith by the Company's
Board of Directors. In all events, appropriate adjustment (as determined in good
faith by the Company's Board of Directors) shall be made in the application of
the provisions of this Warrant with respect to the rights and interests of the
Holder after the transaction, to the end that the provisions of this Warrant
shall be applicable after that event, as

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near as reasonably may be, in relation to any shares or other property
deliverable after that event upon exercise of this Warrant.

         10.2 Reclassification, etc. If the Company, at any time while this
Warrant, or any portion hereof, remains outstanding and unexpired, by
reclassification of securities or otherwise, shall change any of the securities
as to which purchase rights under this Warrant exist into the same or a
different number of securities of any other class or classes, this Warrant shall
thereafter represent the right to acquire such number and kind of securities as
would have been issuable as a result of such change with respect to the
securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Exercise
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 10.

         10.3 Split, Subdivision or Combination of Shares. If the Company at any
time while this Warrant, or any portion hereof, remains outstanding and
unexpired shall split, subdivide or combine the securities as to which purchase
rights under this Warrant exist, into a different number of securities of the
same class, the Exercise Price for such securities shall be proportionately
decreased in the case of a split or subdivision or proportionately increased in
the case of a combination.

         10.4 Adjustments for Dividends in Stock or Other Securities or
Property. If while this Warrant, or any portion hereof, remains outstanding and
unexpired the holders of the securities as to which purchase rights under this
Warrant exist at the time shall have received, or, on or after the record date
fixed for the determination of eligible stockholders, shall have become entitled
to receive, without payment therefor, other or additional stock or other
securities or property (other than cash) of the Company by way of dividend, then
and in each case, this Warrant shall represent the right to acquire, in addition
to the number of shares of the security receivable upon exercise of the Warrant,
and without payment of any additional consideration therefor, the amount of such
other or additional stock or other securities or property (other than cash) of
the Company that such holder would hold on the date of such exercise had it been
the holder of record of the security receivable upon exercise of this Warrant on
the date hereof and had thereafter, during the period from the date hereof to
and including the date of such exercise, retained such shares and/or all other
additional stock available by it as aforesaid during such period, giving effect
to all adjustments called for during such period by the provisions of this
Section 10.

         10.5 Certificate as to Adjustments. Upon the occurrence of each
adjustment or readjustment pursuant to this Section 10, the Company at its
expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to each Holder of this Warrant a certificate
setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Company shall, upon the
written request, at any time, of any such Holder, furnish or cause to be
furnished to such Holder a like certificate setting forth (i) such adjustments
and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the
number of shares and the amount, if any, of other property that at the time
would be received upon the exercise of the Warrant.

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         10.6 No Impairment. The Company will not, by any voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good
faith assist in the carrying out of all the provisions of this Section 10 and in
the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder of this Warrant against impairment.

    11. Miscellaneous.

         11.1 Governing Law. This Warrant shall be governed by and construed
according to the laws of the State of Delaware.

         11.2 References. Unless the context otherwise requires, any reference
to a "Section" refers to a section of this Warrant. Any reference to "this
Section" refers to the whole number section in which such reference is
contained.

         11.3 Definitions. Capitalized terms used in this Warrant but not
defined herein shall have the meanings set forth in the Warrant Agreement.

         11.4 Transfers. The Holder understands and agrees that the certificates
evidencing the Common Stock issuable upon exercise of this Warrant will bear an
appropriate legend evidencing the restricted natures of the Common Stock
indicating that no transfer of any of the Common Stock may be made unless such
Common Stock is registered under the Securities Act of 1933, as amended, or an
exemption from such registration is available, and that the Company will
instruct its transfer agent not to transfer any such shares of Common Stock
unless such transfer shall be made in compliance with such legend. The legend
shall be substantially in the form set forth below:

                   "THE SALE, TRANSFER, ASSIGNMENT, PLEDGE OR
                   HYPOTHECATION OF THE SHARES REPRESENTED BY
                   THIS CERTIFICATE ARE SUBJECT TO THE REGISTRATION
                   REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS
                   AMENDED (THE "ACT"). THESE SHARES MAY NOT BE
                   SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR
                   HYPOTHECATED UNLESS DULY REGISTERED UNDER
                   THE ACT OR UNLESS, IN THE OPINION OF COUNSEL
                   REASONABLY SATISFACTORY TO THE COMPANY, SUCH
                   TRANSACTION IS EXEMPT FROM THE REGISTRATION
                   PROVISIONS OF THE ACT."

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         IN WITNESS WHEREOF, OPTICARE HEALTH SYSTEMS, INC. has caused this
Warrant to be executed by its officers thereunto duly authorized.

Dated:  as of January 5, 2001

                                            OPTICARE HEALTH SYSTEMS, INC.

                                            By___________________________
                                                     Dean J. Yimoyines
                                                     Its CEO

HOLDER:

By_________________________

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                               NOTICE OF EXERCISE

TO:      OPTICARE HEALTH SYSTEMS, INC.

         (1) The undersigned hereby (A) elects to purchase _______ shares of
Common Stock of OPTICARE HEALTH SYSTEMS, INC. pursuant to the provisions of
Section 3(a)(i) of the attached Warrant, and tenders herewith payment of the
purchase price for such shares in full, or (B) elects to exercise this Warrant
for the purchase of ________ shares of Common Stock, pursuant to the provisions
of Section 3(a)(ii) of the attached Warrant.

         (2) In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of Common Stock are being acquired solely for the
account of the undersigned and not as a nominee for any other party, and for
investment, and that the undersigned will not offer, sell or otherwise dispose
of any such shares of Common Stock except under circumstances that will not
result in a violation of the Securities Act of 1933, as amended, or any
applicable state securities laws.

         (3) Please issue a certificate or certificates representing said shares
of Common Stock in the name of the undersigned or in such other name as is
specified below:

                                              ------------------------------
                                              (Name)

                                              ------------------------------
                                              (Name)

         (4) Please issue a new Warrant for the unexercised portion of the
Attached Warrant in the name of the undersigned or in such other name as
specified below:

                                              ------------------------------
                                              (Name)

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

(Date)                                        (Signature)

                                       8<PAGE>

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDERTHE SECURITIES ACT OF 1933, AS AMENDED. THESE
          SECURITIES MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF SUCH
         REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT.

                          OPTICARE HEALTH SYSTEMS, INC.

               Warrant for the Purchase of Shares of Common Stock,
                            par value $.001 per Share

     THIS CERTIFIES that, for value received,                   (the "Holder"),
is entitled to subscribe for and purchase from OPTICARE HEALTH SYSTEMS, INC., a
Delaware corporation (the "Company"), upon the terms and conditions set forth
herein, at any time or from time to time after the date of this Warrant (the
"Issue Date") and before 5:00 P.M., New York time, on the fifth anniversary of
the Issue Date (the "Exercise Period"), 50,000 shares of the Company's Common
Stock, par value $.001 per share ("Common Stock"). The Warrant Shares (as
hereinafter defined) shall be issuable at a price of $     per share (the
"Exercise Price").

     As used herein the term "this Warrant" shall mean and include this Warrant
and any Warrants hereafter issued as a consequence of the exercise or transfer
of this Warrant in whole or in part; and the terms "Holder" or "Holders" as used
herein shall include any transferee to whom this Warrant or any portion hereof
has been transferred. The number of shares issuable upon exercise of this
Warrant (the "Warrant Shares") and the Exercise Price may be adjusted from time
to time as hereinafter set forth.

     1. Method of Exercise. This Warrant may be exercised during the Exercise
Period, as to the whole or any lesser number of whole Warrant Shares, by the
surrender of this Warrant (with the election at the end hereof duly executed) to
the Company at its office at 87 Grandview Avenue, Waterbury, Connecticut 06708
or at such other place as is designated in writing by the Company, together with
(a) a certified or bank cashier's check payable to the order of the Company in
an amount equal to the Exercise Price multiplied by the number of Warrant Shares
for which this Warrant is being exercised, and/or (b) evidence of the Holder's
cancellation of indebtedness owed by the Company or any of its affiliates to the
Holder in an amount equal to the Exercise Price multiplied by the number of
Warrant Shares for which this Warrant is being exercised (in either case, the
"Stock Purchase Price").

     2. Issuance of Certificates. Upon each exercise of the Holder's rights to
purchase Warrant Shares, the Holder shall be deemed to be the holder of record
of the Warrant Shares issuable upon such exercise, notwithstanding that the
transfer books of the Company shall then be closed or certificates representing
such Warrant Shares shall not then have been actually delivered to the Holder.
As soon as practicable after each such exercise of this Warrant, the Company
shall issue and deliver to the Holder a certificate or certificates for the
Warrant Shares issuable upon such exercise, registered in the name of the Holder
or its designee. If this Warrant should be exercised or converted in part only,
the Company shall, upon surrender of this Warrant

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for cancellation, execute and deliver a new warrant evidencing the right of the
Holder to purchase the balance of the Warrant Shares (or portions thereof)
subject to purchase hereunder.

     3. Recording of Transfer. Any Warrant issued upon the transfer or exercise
in part of this Warrant shall be numbered and shall be registered in a Warrant
Register as they are issued. The Company shall be entitled to treat the
registered holder of any Warrant on the Warrant Register as the owner in fact
thereof for all purposes and shall not be bound to recognize any equitable or
other claim to or interest in such Warrant on the part of any other person. This
Warrant shall be transferable only on the books of the Company upon delivery
thereof duly endorsed by the Holder or by such Holder's duly authorized attorney
or representative, or accompanied by proper evidence of succession, assignment,
or authority to transfer. In all cases of transfer by an attorney, executor,
administrator, guardian, or other legal representative, duly authenticated
evidence of his or its authority shall be produced. Upon any registration of
transfer, the Company shall deliver a new Warrant or Warrants to the person
entitled thereto. This Warrant may be exchanged, at the option of the Holder
thereof, for another Warrant, or other Warrants of different denominations, of
like tenor and representing in the aggregate the right to purchase a like number
of Warrant Shares (or portions thereof), upon surrender to the Company or its
duly authorized agent. Notwithstanding the foregoing, the Company shall have no
obligation to cause Warrants to be transferred on its books to any person if, in
the opinion of counsel to the Company, such transfer does not comply with the
provisions of the Securities Act of 1933, as amended (the "Act"), and the rules
and regulations thereunder.

     4. Reservation of Shares. The Company shall at all times reserve and keep
available out of its authorized and unissued Common Stock, solely for the
purpose of providing for the exercise of the rights to purchase all Warrant
Shares granted pursuant to this Warrant, such number of shares of Common Stock
as shall, from time to time, be sufficient therefor. The Company covenants that
all shares of Common Stock issuable upon exercise of this Warrant, upon receipt
by the Company of the full Exercise Price therefor, shall be validly issued,
fully paid, non-assessable, and free of preemptive rights.

     5. Exercise Price Adjustments.

         (a) In case the Company shall at any time after the date hereof (i)
declare a dividend on the outstanding shares of Common Stock payable solely in
shares of its capital stock, (ii) subdivide the outstanding Common Stock, (iii)
combine the outstanding Common Stock into a smaller number of shares, or (iv)
issue any shares of its capital stock by reclassification of the Common Stock
(including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing corporation), then, in each case,
the Exercise Price, and the number and kind of securities issuable upon exercise
of this Warrant, in effect at the time of the record date for such dividend or
of the effective date of such subdivision, combination, or reclassification,
shall be proportionately adjusted so that the Holder after such time shall be
entitled to receive the aggregate number and kind of shares which, if such
Warrant had been exercised or converted immediately prior to such time, such
Holder would have owned upon such exercise and been entitled to receive by
virtue of such dividend, subdivision, combination, or reclassification. Such
adjustment shall be made successively whenever any event listed above shall
occur.

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         (b) In case the Company shall issue or fix a record date for the
issuance to all holders of Common Stock of rights, options, or warrants to
subscribe for or purchase Common Stock (or securities convertible into or
exchangeable for Common Stock) at a price per share (or having a conversion or
exchange price per share, if a security convertible into or exchangeable for
Common Stock) less than the Exercise Price per share of Common Stock on such
record date, then, in each case, the Exercise Price shall be reduced to such
lower price. Such adjustment shall become effective at the close of business on
such record date. In case any subscription price may be paid in a consideration
part or all of which shall be in a form other than cash, the value of such
consideration shall be as determined in good faith by the board of directors of
the Company, whose determination shall be conclusive absent manifest error.

         (c) In case the Company shall distribute to all holders of Common Stock
(including any such distribution made to the stockholders of the Company in
connection with a consolidation or merger in which the Company is the continuing
corporation) evidences of its indebtedness or assets (other than cash dividends
or distributions and dividends payable in shares of Common Stock), or rights,
options, or warrants to subscribe for or purchase Common Stock, or securities
convertible into or exchangeable for shares of Common Stock (excluding those
with respect to the issuance of which an adjustment of the Exercise Price is
provided pursuant to Section 5(b) hereof), then, in each case, the Exercise
Price shall be adjusted by multiplying the Exercise Price in effect immediately
prior to the record date for the determination of stockholders entitled to
receive such distribution by a fraction, the numerator of which shall be the
Current Market Price per share of Common Stock on such record date, less the
fair market value (as determined in good faith by the board of directors of the
Company, whose determination shall be conclusive absent manifest error) of the
portion of the evidences of indebtedness or assets so to be distributed, or of
such rights, options, or warrants or convertible or exchangeable securities,
applicable to one share, and the denominator of which shall be such Current
Market Price per share of Common Stock. Such adjustment shall be made whenever
any such distribution is made, and shall become effective on the record date for
the determination of stockholders entitled to receive such distribution.

         (d) No adjustment in the Exercise Price shall be required if such
adjustment is less than $.01; provided, however, that any adjustments which by
reason of this Section 5 are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under this
Section 5 shall be made to the nearest cent or to the nearest one-thousandth of
a share, as the case may be.

         (e) In any case in which this Section 5 shall require that an
adjustment in the Exercise Price be made effective as of a record date for a
specified event, the Company may elect to defer, until the occurrence of such
event, issuing to any Holder, if such Holder exercised or converted this Warrant
after such record date, the shares of Common Stock, if any, issuable upon such
exercise over and above the shares of Common Stock, if any, issuable upon such
exercise on the basis of the Exercise Price in effect prior to such adjustment;
provided, however, that the Company shall deliver to such Holder a due bill or
other appropriate instrument evidencing such Holder's right to receive such
additional shares upon the occurrence of the event requiring such adjustment.

         (f) Upon each adjustment of the Exercise Price as a result of the

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calculations made in Sections 5(b) or 5(c) hereof, this Warrant shall thereafter
evidence the right to purchase, at the adjusted Exercise Price, that number of
shares (calculated to the nearest thousandth) obtained by dividing (i) the
product obtained by multiplying the number of shares purchasable upon exercise
of this Warrant prior to adjustment of the number of shares by the Exercise
Price in effect prior to adjustment of the Exercise Price, by (ii) the Exercise
Price in effect after such adjustment of the Exercise Price.

         (g) Whenever there shall be an adjustment as provided in this Section
5, the Company shall promptly cause written notice thereof to be sent by
registered mail, postage prepaid, to each Holder, at such Holder's address as it
shall appear in the Warrant Register, which notice shall be accompanied by an
officer's certificate setting forth the number of Warrant Shares purchasable
upon the exercise of this Warrant and the Exercise Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment and
the computation thereof, which officer's certificate shall be conclusive
evidence of the correctness of any such adjustment absent manifest error.

         (h) The Company shall not be required to issue fractions of shares of
Common Stock or other capital stock of the Company upon the exercise of this
Warrant. If any fraction of a share would be issuable on the exercise of this
Warrant (or specified portions thereof), the Company shall purchase such
fraction for an amount in cash equal to the same fraction of the Current Market
Price of such share of Common Stock on the date of exercise of this Warrant.

     6. Consolidation and Mergers.

         (a) In case of any consolidation with or merger of the Company with or
into another corporation (other than a merger or consolidation in which the
Company is the surviving or continuing corporation), or in case of any sale,
lease, or conveyance to another corporation of the property and assets of any
nature of the Company as an entirety or substantially as an entirety, such
successor, leasing, or purchasing corporation, as the case may be, shall (i)
execute with the Holder an agreement providing that the Holder shall have the
right thereafter to receive upon exercise of this Warrant solely the kind and
amount of shares of stock and other securities, property, cash, or any
combination thereof receivable upon such consolidation, merger, sale, lease, or
conveyance by a holder of the number of shares of Common Stock for which this
Warrant might have been exercised or converted immediately prior to such
consolidation, merger, sale, lease, or conveyance, and (ii) make effective
provision in its certificate of incorporation or otherwise, if necessary, to
effect such agreement. Such agreement shall provide for adjustments which shall
be as nearly equivalent as practicable to the adjustments in Section 5.

         (b) In case of any reclassification or change of the shares of Common
Stock issuable upon exercise of this Warrant (other than a change in par value
or from no par value to a specified par value, or as a result of a subdivision
or combination, but including any change in the shares into two or more classes
or series of shares), or in case of any consolidation or merger of another
corporation into the Company in which the Company is the continuing corporation
and in which there is a reclassification or change (including a change to the
right to receive cash or other property) of the shares of Common Stock (other
than a change in par value,

                                       4
<PAGE>

or from no par value to a specified par value, or as a result of a subdivision
or combination, but including any change in the shares into two or more classes
or series of shares), the Holder shall have the right thereafter to receive upon
exercise of this Warrant solely the kind and amount of shares of stock and other
securities, property, cash, or any combination thereof receivable upon such
reclassification, change, consolidation, or merger by a holder of the number of
shares of Common Stock for which this Warrant might have been exercised or
converted immediately prior to such reclassification, change, consolidation, or
merger. Thereafter, appropriate provision shall be made for adjustments which
shall be as nearly equivalent as practicable to the adjustments in Section 5.

         (c) The above provisions of this Section 6 shall similarly apply to
successive reclassifications and changes of shares of Common Stock and to
successive consolidations, mergers, sales, leases, or conveyances.

     7. Notices of Certain Events. In case at any time the Company shall
propose:

         (a) to pay any dividend or make any distribution on shares of Common
Stock in shares of Common Stock or make any other distribution (other than
regularly scheduled cash dividends which are not in a greater amount per share
than the most recent such cash dividend) to all holders of Common Stock; or

         (b) to effect any reclassification or change of outstanding shares of
Common Stock, or any consolidation, merger, sale, lease, or conveyance of
property, described in Section 6; or

         (c) to effect any liquidation, dissolution, or winding-up of the
Company; or

         (d) to take any other action which would cause an adjustment to the
Exercise Price; then, and in any one or more of such cases, the Company shall
give written notice thereof, by registered mail, postage prepaid, to each of the
Holders at the Holders' respective addresses as it shall appear in the Warrant
Register, mailed at least 15 days prior to (i) the date as of which the holders
of record of shares of Common Stock to be entitled to receive any such dividend,
distribution, rights, warrants, or other securities are to be determined, (ii)
the date on which any such reclassification, change of outstanding shares of
Common Stock, consolidation, merger, sale, lease, conveyance of property,
liquidation, dissolution, or winding-up is expected to become effective, and the
date as of which it is expected that holders of record of shares of Common Stock
shall be entitled to exchange their shares for securities or other property, if
any, deliverable upon such reclassification, change of outstanding shares,
consolidation, merger, sale, lease, conveyance of property, liquidation,
dissolution, or winding-up, or (iii) the date of such action which would require
an adjustment to the Exercise Price.

         8. Taxes. The issuance of any shares or other securities upon the
exercise of this Warrant, and the delivery of certificates or other instruments
representing such shares or other securities, shall be made without charge to
the Holder for any tax or other charge in respect of such issuance. The Company
shall not, however, be required to pay any tax which may be payable in respect
of any transfer involved in the issue and delivery of any certificate in a name

                                       5
<PAGE>

other than that of the Holder and the Company shall not be required to issue or
deliver any such certificate unless and until the person or persons requesting
the issue thereof shall have paid to the Company the amount of such tax or shall
have established to the satisfaction of the Company that such tax has been paid.

         9. Registration Rights. Within 10 days after the date hereof, the
Company and the Holder shall enter into a Registration Rights Agreement, on
mutually acceptable terms, relating to the registration by the Company of the
Warrant Shares and any other shares of Common Stock of the Company issued or
issuable in respect of this Warrant or the Warrant Shares upon any stock split,
stock dividend, recapitalization or similar event which, in each case, have not
previously been sold pursuant to a registration statement or Rule 144
promulgated under the Act. Such Registration Rights Agreement shall provide for,
among other things, two demand registration rights and piggyback registration
rights, at the expense of Company, and customary indemnification obligations. In
addition, the rights of the Holder under such Registration Rights Agreement
shall be no less favorable than the rights granted to Medici I Investment Corp.
or Alexander Enterprise Holdings Corp.

         10. Legend. Unless the Warrant Shares issued upon exercise of the
Warrants are registered for resale under the Act, the certificate or
certificates evidencing such Warrant Shares shall bear the following legend:

      "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED. THESE SHARES MAY NOT BE OFFERED OR SOLD IN
      THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION FROM
      REGISTRATION UNDER SUCH ACT."

         11. Replacement of Warrants. Upon receipt of evidence satisfactory to
the Company of the loss, theft, destruction, or mutilation of this Warrant (and
upon surrender of this Warrant if mutilated), and upon reimbursement of the
Company's reasonable incidental expenses, the Company shall execute and deliver
to the Holder thereof a new Warrant of like date, tenor, and denomination.

         12. No Rights as Stockholder. The Holder shall not have, solely on
account of such status, any rights of a stockholder of the Company, either at
law or in equity, or to any notice of meetings of stockholders or of any other
proceedings of the Company, except as provided in this Warrant.

         13. Governing Law. This Warrant shall be construed in accordance with
the laws of the State of Delaware applicable to contracts made and performed
within such State, without regard to principles of conflicts of law.

         14. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be sent by registered or certified mail,
postage prepaid, return receipt requested, overnight courier or otherwise
delivered by hand or by messenger:

             (a) if to the registered Holder of this Warrant, to the address of
such Holder as shown on the books of the Company; or

                                       6
<PAGE>

             (b) if to the Company, to the address set forth on the first page
of this Warrant or to such other address as the Company may designate by notice
to the Holder.

Each such notice or other communication shall be treated as effective or having
been given (i) when delivered if delivered personally, (ii) if sent by
registered or certified mail, at the earlier of its receipt or three business
days after the same has been registered or certified as aforesaid, or (iii) if
sent by overnight courier, on the next business day after the same has been
deposited with a nationally recognized courier service.

         15. Headings. The Section headings in this Warrant are inserted for
purposes of convenience only and shall have no substantive effect.

         16. Modification. Neither this Warrant, nor any Warrants issued upon
transfer or exercise hereof, may be amended, waived, discharged, or terminated
other than by a written instrument signed by the party against whom enforcement
of any such amendment, waiver, discharge or termination is sought; provided,
however, that Holders who, in the aggregate, own at least a majority of all of
the Warrant Shares issuable upon exercise of the Warrants may, with the written
consent of the Company, waive, modify, or amend, on behalf of all Holders, any
provision hereof or of such other Warrant issued upon transfer, exercise hereof,
affecting such holders, so long as the effect thereof will be that all such
holders will be treated equally.

         17. Successors. All of the covenants, agreements, representations and
warranties contained in this Warrant shall bind the parties hereto and their
respective heirs, executors, administrators, distributees, successors and
assigns.

         18. Consent to Jurisdiction. The Company irrevocably consents to the
jurisdiction of the courts of the State of New York sitting in New York County,
New York in connection with any action or proceeding arising out of or relating
to this Warrant, any document or instrument delivered pursuant to, in connection
with or simultaneously with this Warrant, or a breach of this Warrant or any
such document or instrument. In any such action or proceeding, the Company
waives personal service of any summons, complaint or other process and agrees
that service thereof may be made in accordance with Section 14 hereof.

Dated: January 5, 2001               OPTICARE HEALTH SYSTEMS, INC.

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

                                       7
<PAGE>

                               FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer the
attached Warrant.)

                  FOR VALUE RECEIVED, ______________________ hereby sells,
assigns, and transfers unto _____________________ a Warrant to purchase
____________ shares of Common Stock, par value $____ per share, of OPTICARE
HEALTH SYSTEMS, INC. (the "Company"), together with all right, title, and
interest therein, and does hereby irrevocably constitute and appoint
_________________________ attorney to transfer such Warrant on the books of the
Company, with full power of substitution.

                                           Dated:___________________________

                                           By:______________________________
                                                Signature

         The signature on the foregoing Assignment must correspond to the name
as written upon the face of this Warrant in every particular, without alteration
or enlargement or any change whatsoever.

                                       8
<PAGE>

To: OPTICARE HEALTH SYSTEMS, INC.

                              ELECTION TO EXERCISE

                  The undersigned hereby exercises his or its rights to purchase
________ Warrant Shares covered by the within Warrant and [tenders payment
herewith in the amount of $__________] [cancels indebtedness owed by the
Opticare Health Systems, Inc., or any of its affiliates, to the undersigned in
the amount of $__________] in accordance with the terms thereof, and requests
that certificates for such securities be issued in the name of, and delivered
to:

                      _____________________________________

                      _____________________________________

                      _____________________________________

                      _____________________________________
                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and, if such number of Warrant Shares shall not be all the Warrant Shares
covered by the within Warrant, that a new Warrant for the balance of the Warrant
Shares covered by within Warrant be registered in the name of, and delivered to,
the undersigned at the address stated below.

                                    Dated: ____________________________________

                                      By: _____________________________________
                                           Print Name

                                          _____________________________________
                                          Signature

Address:
________________________________
________________________________
________________________________

                                       9

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