Document:

<PAGE>

                             PRE-WORKOUT AGREEMENT
                             ---------------------

     AGREEMENT, made as of February 26, 2001 among BANK AUSTRIA CREDITANSTALT
CORPORATE FINANCE, INC., in its capacity as agent ("Agent") for the financial
institutions (the "Lenders") from time to time party to the Loan Agreement
(defined below) and OPTICARE EYE HEALTH NETWORK, INC., formerly known as
CONSOLIDATED EYE CARE, INC., a North Carolina corporation ("CEC"), OPTICARE
EYE HEALTH CENTERS, INC., a Connecticut Corporation ("OptiCare"), PRIMEVISION
HEALTH INC., a Delaware corporation ("PVH") and together with CEC and OptiCare,
the "Borrowers"), OPTICARE HEALTH SYSTEMS, INC., a Delaware corporation (the
"Parent"; and together with the Borrowers, the "Obligors").

                               W I T N E S S E T H
                               - - - - - - - - - -

WHEREAS:

     A. The Lenders made loans and other financial accommodations (the "Loans")
to the Borrowers pursuant to a certain Amended and Restated Loan and Security
Agreement dated as of August 13, 1999 (the "Loan Agreement") (as the same shall
have been amended, restated, modified and supplemented from time to time, the
"Loan Documents").

     B. The Borrowers are in default under the Loan Documents and have requested
the Agent and the Lenders to enter into discussions for a possible workout
arrangement with respect to the Loans (the "Discussions").

     C. The Agent and the Lenders are unwilling to enter into the Discussions
unless the Obligors make certain representations, and agree to certain
understandings with respect to the Discussions, as are more particularly set
forth in this Agreement.

     NOW, THEREFORE, to induce the Agent and the Lenders to enter into the
Discussions, and in consideration of Ten ($10) Dollars and other good and
valuable consideration, the receipt and sufficiently of which are hereby
acknowledged by the Agent, Lenders and Obligors, the parties hereto agree as
follows:

     1. Borrower Representations. The Borrowers represent, warrant and
covenant to the Agent and the Lenders that (a) the outstanding principal balance
of the Senior Loans as of the date hereof is See Attached Schedule I [and
outstanding accrued and unpaid interest on the Senior Loans as of the date
hereof is See Attached Schedule I] (b) the Loan Documents are set forth in
Exhibit A annexed hereto and made a part hereof, and have not been modified or
amended except as may be set forth in Exhibit A; (c) there are no other
understandings or agreements relating to the Loans other than the Loan
Documents; (d) the Loan Documents are and shall remain in full force and effect;
(e) Borrowers are in default under the Loan Documents as set forth in Exhibit B
annexed hereto and made a part hereof and there are no other defaults by the
Borrowers under the Loan Documents; (f) the Agent and the Lenders are not in
default under any of the Loan Documents and there are no offsets, counterclaims
or defenses to the obligations of the Obligors, or the rights, remedies or
powers of the Lenders, thereunder; (g) there are no defenses, set-offs or
counterclaims to or with respect to the obligations of the Obligors under the
Loan Documents and the Obligors agree not to interpose any defense, set-off or
counterclaim in any action brought by the Agent or the Lenders with respect
thereto; (h) the Obligors have been represented by counsel of their choice in
connection with this Agreement which it has executed freely and without coercion
or duress.

                                       1

<PAGE>

     2. Definitive Documents. No understanding, offer, commitment, assurance,
intention, agreement or proposal which may arise during the Discussions,
whether oral or written, shall be binding or of any force or effect unless and
until definitive documents, satisfactory in all respects to the Agent and
the Lenders, in its sole and absolute discretion, shall have been fully
executed and delivered by an authorized representative of the Agent and the
Lenders.

     3. No Waivers. Unless (and only to the extent) contained in the definitive
documents described in Section 2 hereof, no correspondence, memoranda,
instruments, documents, negotiations, statements, conversations, proposals or
other actions or communications heretofore, now or hereafter made or undertaken
by the Agent and Lenders (or any representative, officer, director, employee,
counsel or other party acting, or purporting to act, on behalf of the Agent and
Lenders) in connection with the discussions, shall (a) constitute a waiver, cure
or extension of time with respect to any default, or the performance of any
obligation, of the Obligors under the Loan Documents (whether or not such
default or non-performance is known or set forth in Exhibit B hereof; (b)
constitute a waiver of, or evidence an intention to forbear in the exercise of,
any rights, powers or remedies of the Agent and Lenders under any of the Loan
Documents at law or otherwise, all of which obligations, rights, powers and
remedies are expressly reserved and may be exercised at any time in accordance
with the provisions of the Loan Documents and/or applicable law; (c) be relied
upon by the Obligors for any purpose; (d) give rise to any liability, duty or
obligation of the Agent and Lenders; (e) be admissable as evidence or for any
other purpose in or in connection with any action, hearing, litigation,
arbitration or other proceeding; (f) constitute a tolling or extension of any
time period with respect to, or evidence an intention or agreement to forbear
in the prosecution of, any legal proceedings which may have been brought or
commenced, or may hereafter be brought or commenced, by the Agent and Lenders;
(g) constitute a modification, amendment or waiver of any provisions of the
Loan Documents; or (h) affect in any manner the Agent's and Lenders' right to
sell, assign or otherwise transfer all or any portion of its interest in any of
the Loans.

     4. Authorized Representatives. Each party executing and delivering this
letter agreement on behalf of the Obligors represents and warrants to the
Agent and the Lenders that (a) s/he is authorized to execute and deliver this
Agreement on behalf of the respective Obligor and to represent the respective
Obligors in the discussions; (b) all necessary consents for such execution,
delivery and representation have been obtained; and (c) this Agreement has been
duly and validly executed and delivered on behalf of the Obligors and
constitutes the binding agreement and obligations of the Obligors enforceable
in accordance with its terms.

     5. Termination. The discussions may be terminated by the Agent and Lenders
at any time and for any reason or for no reason, in its sole and absolute
discretion. Any such termination shall be without liability to the Agent and
Lenders whatsoever. The provisions of this Agreement shall survive any such
termination, whether or not pursuant to a settlement.

     6. Legal Fees. All out-of-pocket costs and expenses incurred by the Agent
and Lenders in connection with the discussions (including, without limitation,
legal, accounting and other professional and consultant's fees and
disbursements) shall be paid by the Obligors and shall constitute a portion
of the indebtedness secured by the Loan Documents.

     7. Release. The Obligors hereby release all claims (including any lender
liability claims) against the Agent and the Lenders.

     8. References. All references to the Loan Agreement in the Loan Agreement
or any other Loan Document and the other documents or instruments delivered
pursuant to or in connection therewith

                                      2

<PAGE>

shall mean such Loan Agreement as modified hereby and as each may in the future
be amended, restated, supplemented or modified from time to time. This
Agreement shall constitute a Loan Document.

     9. Counterparts. This Agreement may be executed by the parties hereto
individually or in combination, in one or more counterparts, each of which
shall be an original and all of which, taken together, shall constitute one
and the same agreement. Delivery of an executed counterpart of a signature page
by telecopier shall be effective as delivery of a manually executed counterpart.

     10. Effectiveness. This Agreement shall become effective upon execution of
a counterpart of this Agreement by each party.

     11. Miscellaneous. This Agreement constitutes the entire agreement of the
parties with respect to the subject matter hereof and supersedes any prior
understandings or agreements which may exist with respect thereto. This
Agreement shall be binding upon the Obligors, their successors, assigns, heirs,
legatees, distributees and legal representatives, and shall inure to the
benefit of the Agent and the Lenders, their successors, assigns, subsidiaries,
designees and legal representatives. This Agreements shall be governed by the
law of the State of New York, without regard to principles of conflicts of
laws. If any provision of this Agreement shall be unenforceable by applicable
law, such provision shall be ineffective without invalidating the remaining
provisions of this Agreement. Section headings used herein are for convenience
only and shall not be a part of this Agreement or used to interpret any of the
provisions hereof. This Agreement may not be modified or amended except in a
written instrument executed by the party to be charged.

                                        3

<PAGE>

     IN WITNESS WHEREOF, the Obligors, the Agent and the Lenders have caused
this Agreement to be duly executed by their respective officers of the day and
year first above written.

                                        OPTICARE EYE HEALTH NETWORK, INC.

                                        By:     /s/ Dean Yimoyines
                                                ----------------------------
                                                Name:  Dean Yimoyines
                                                Title: President

                                        Attest: /s/ William Blaskzewicz
                                                ----------------------------
                                                Name:  William Blaskzewicz
                                                Title: C.A.O.

                                        OPTICARE EYE HEALTH CENTERS, INC.

                                        By:     /s/ Dean Yimoyines
                                                ----------------------------
                                                Name:  Dean Yimoyines
                                                Title: President

                                        Attest: /s/ William Blaskzewicz
                                                ----------------------------
                                                Name:  William Blaskzewicz
                                                Title: C.A.O.

                                        PRIMEVISION HEALTH, INC.

                                        By:     /s/ Dean Yimoyines
                                                ----------------------------
                                                Name:  Dean Yimoyines
                                                Title: President

                                        Attest: /s/ William Blaskzewicz
                                                ----------------------------
                                                Name:  William Blaskzewicz
                                                Title: C.A.O.

                                       4

<PAGE>

                                        OPTICARE HEALTH SYSTEMS, INC.

                                        By:     /s/ Dean Yimoyines
                                                ----------------------------
                                                Name:  Dean Yimoyines
                                                Title: President

                                        Attest: /s/ William Blaskzewicz
                                                ----------------------------
                                                Name:  William Blaskzewicz
                                                Title: C.A.O.

                                        BANK AUSTRIA CREDITANSTALT CORPORATE
                                        FINANCE, INC., as Agent

                                        By:     /s/ Andrew J. Russell
                                                ----------------------------
                                                Name:  Andrew J. Russell
                                                Title: Senior V.P.

                                        By:     /s/ A.W. Seidel
                                                ----------------------------
                                                Name:  A.W. Seidel
                                                Title: SVP

                                        Attest: /s/ Laird W. Schaefer
                                                ----------------------------
                                                Name:  Laird W. Schaefer
                                                Title: Vice President

                                        BANK AUSTRIA CREDITANSTALT CORPORATE
                                        FINANCE, INC., as Lender

                                        By:     /s/ Andrew J. Russell
                                                ----------------------------
                                                Name:  Andrew J. Russell
                                                Title: Senior V.P.

                                        By:     /s/ A.W. Seidel, SVP
                                                ----------------------------
                                                Name:  A.W. Seidel
                                                Title: SVP

                                        Attest: /s/ Laird W. Schaefer
                                                ----------------------------
                                                Name:  Laird W. Schaefer
                                                Title: Vice President

                                       5

<PAGE>

                                  SCHEDULE I
OPTICARE

<TABLE>
<CAPTION>
<S>                          <C>                    <C>
REVOLVER
outstanding principal        12,700,000.00          includes 400,000 standly L/C

outstanding libor interest      200,364.69
interest accrued to 26/2         44,317.72

Total interest                  244,682.41

TERM LOAN A
outstanding Principal        17,375,000.00

Outstanding libor interest      246,269.43
interest accrued to 26/2         52,847.75

Total interest                  299,117.18

PHYSICIAN L/Cs
L/Cs outstanding                692,344.00         162,500.00 Anne C. Huntington expiry 9/5/01 *
                                                   162,500.00 John A. Distler expiry 9/5/01 *
                                                   183,672.00 Micheal Somers expiry 2/27/01
                                                   183,672.00 John C. Higgins expiry 2/27/01

Total principal outstanding  30,767,344.00
Total principal outstanding     543,799.00
</TABLE>

*     these are Physician Put Letters of Credit subject to the limitations set
      forth in the Loan Agreement.<PAGE>

                       OPTICARE DIRECTORS & OFFICERS TRUST

                                 TRUST AGREEMENT

         THIS TRUST AGREEMENT is made as of November 7 , 2001 ("Trust
Agreement") by and between OptiCare Health Systems, Inc., a Delaware corporation
(the "Company" or " Settlor") and Norman S. Drubner, an individual residing at
Middlebury, Connecticut, not in his individual capacity but solely as trustee
(the "Trustee").

                                   WITNESSETH:

         WHEREAS, the Company maintains a Directors, Officers and Company
Liability Policy (Policy No. NCA0158069) (together with any and all
endorsements, modifications, substitutions and renewals thereof, the "D&O
Policy") for the benefit of its directors and officers, provided by Twin City
Fire Insurance Company (the "Insurer") and maintained by The Hartford (the
"Hartford"); and

         WHEREAS, the D&O Policy provides, among other things, that the
Insurer's liability in respect of loss arising from each Claim shall apply only
to that part of Loss which is in excess of the applicable Retention set forth
therein, and the applicable Retention set forth for Securities Claims, including
Claims Expenses, is $150,000. All capitalized terms used herein and not
otherwise defined shall have the meaning ascribed to them in the D&O Policy; and

         WHEREAS, to assure the Company's present and future directors and
officers of the Company's ability to pay the Retention amount described above,

                                                                              1.
<PAGE>

the Company wishes to establish a trust in which the Retention amount may be
maintained;

         NOW, THEREFORE, the Company and the Trustee agree as follows:

1. The trust created hereby shall be known as the OptiCare Directors & Officers
Trust ("D&O Trust") in which name the Trustee may conduct the business of such
trust.

2. The Company hereby transfers, conveys and sets over to the Trustee of the D&O
Trust the sum of $150,000 (One Hundred Fifty Thousand Dollars). All such funds,
together with such investments, proceeds, earnings and profits, less the
payments or other distributions which, at the time of reference, shall have been
made by the Trustee as authorized herein, are referred to as the "Funds;"
provided, however, that during any period in which no Claims have been made and
remain outstanding, all of the interest and other income earned with respect to
the Funds shall be for the account of the Company, and shall be distributed to
the Company by the Trustee no less than quarterly.

3. The Funds shall be maintained in an account at American Bank of Connecticut
in the name of the Trustee (the "D&O Account") for the benefit of the present
and future directors and officers of the Company (collectively, the
"Beneficiaries").

4. The Funds in the D&O Trust may be disbursed upon receipt by the Trustee of a
written statement from the Beneficiaries, or any of them, that a Claim has been

                                                                              2.
<PAGE>

made, that the Insurer has indicated that it has accepted defense of such Claim
by its written consent as described in Section III of the D&O Policy, and that
expenses are being incurred to defend such Claim.

5. The Funds in the D&O Trust will be released to fund the Retention for such
Securities Claim(s) or derivative act(s) that the Company is legally obligated
to pay as a result of the indemnity provided by the Company in its Articles of
Incorporation.

6. The Trustee is authorized and empowered to oversee the D&O Account and
release the Funds in the appropriate manner when the above events occur.

7. The Trustee shall serve without compensation, but shall be reimbursed for all
reasonable expenses incurred in connection with the operation of the Trust,
including without limitation out-of-pocket expenses and necessary counsel fees.

8. If the Trustee at any time acting hereunder should cease to act prior to the
termination of the D&O Trust, the Company shall appoint an individual or
corporation to act as successor Trustee. Each appointment of a trustee in
accordance herewith shall be by an acknowledged written instrument. Any such
designation may be withdrawn or altered by the Company at any time. Except as
otherwise specifically provided, the term "Trustee" as used in this Trust
Agreement is intended to include the trustee acting hereunder from time to time.
Any Trustee may resign at any time without the permission of any court or person
upon 60 (sixty) days' notice to the Company, in writing signed and acknowledged
by such Trustee and filed with the trust records.

                                                                              3.
<PAGE>

9. This D&O Trust shall terminate upon the earliest to occur of the following:
(1) the expiration of three years from the date of this Trust Agreement
(providing that at such date no Claims made remain outstanding); (2) the date on
which any Claims outstanding at the expiration of such three years shall have
been settled or paid, or disbursement shall have been made with regard to such
Claims in accordance with Paragraph 4 of this Trust Agreement; or (3) upon the
Company's delivery to the Trustee certification that the net worth of the
Company is no less than $30,000,000 as determined by the Company's independent
accountants. Upon termination of the D&O Trust, to the extent that any Funds
remain undisbursed, the remaining Funds shall be distributed back to the
Company.

10. This Trust Agreement and the D&O Trust hereby created are irrevocable.

11. This Trust Agreement shall be construed and the trust hereby created shall
be governed by the internal laws of the State of Connecticut.

                                                                              4.
<PAGE>

         IN WITNESS WHEREOF, the Company and the Trustee have executed this
Trust Agreement as of the date first above written.

                               OPTICARE HEALTH SYSTEMS, INC.

                               By:
                                  --------------------------------------------
                                      Dean J. Yimoyines, M. D.
                               Its:   President and CEO

                               By:
                                  --------------------------------------------
                               NORMAN S. DRUBNER , not in his individual
                               capacity but solely as trustee of the D&O Trust

                                                                              5.
<PAGE>

STATE OF CONNECTICUT)
                                            ss.: Waterbury
COUNTY OF         New Haven)

         On November _____, 2001, before me, the undersigned, a Notary Public in
and for the State of ____________, personally appeared Dean J. Yimoyines, M.D.,
President and CEO of OptiCare Health Systems, Inc., personally known to me or
proved to me on the basis of satisfactory evidence to be one of the persons
whose names are subscribed to the foregoing instrument and acknowledged to me
that he executed the same in his capacity as President and CEO of OptiCare
Health Systems, Inc, as Settlor of the foregoing D&O Trust.

                                    -------------------------------------------
                                             Notary Public
                                             Commission Expires:

STATE OF CONNECTICUT)
                                            ss.:  Waterbury
COUNTY OF NEW HAVEN)

         On November _____, 2001, before me, the undersigned, a Notary Public in
and for the State of ____________, personally appeared Norman S. Drubner,
Trustee, personally known to me or proved to me on the basis of satisfactory
evidence to be one of the persons whose names are subscribed to the foregoing
instrument and acknowledged to me that he executed the same as trustee.

                                    --------------------                ------
                                    Notary Public
                                    Commission Expires:

                                                                              6.

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