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                          OPTICARE HEALTH SYSTEMS, INC.

                 AMENDED AND RESTATED 2002 STOCK INCENTIVE PLAN

         1. PURPOSE. The purpose of the OptiCare Health Systems, Inc. Amended
and Restated 2002 Stock Incentive Plan (the "Plan") is to provide a means
through which the Company and its Subsidiaries and Affiliates may attract able
persons to enter and remain in the employ of the Company and its Subsidiaries
and Affiliates and to provide a means whereby eligible persons can acquire and
maintain Common Stock ownership, or be paid incentive compensation measured by
reference to the value of Common Stock, thereby strengthening their commitment
to the welfare of the Company and its Subsidiaries and Affiliates and promoting
an identity of interest between stockholders and these eligible persons. This
Plan amends and restates the 2002 Stock Incentive Plan originally adopted by the
Board of Directors of the Company on January 25, 2002.

         So that the appropriate incentive can be provided, the Plan provides
for granting Incentive Stock Options, Nonqualified Stock Options, Restricted
Stock Awards and Stock Bonuses, or any combination of the foregoing. Capitalized
terms not defined in the text are defined in Section 24.

         2. SHARES SUBJECT TO THE PLAN. Subject to Section 18, the total number
of Shares reserved and available for grant and issuance pursuant to this Plan
will be 6,600,000 Shares, provided that the Committee may not grant Awards to
the extent and at a time when the total number of outstanding Options or other
Awards granted under the Plan, aggregated with the total number of outstanding
options granted pursuant to the Company's Performance Stock Program, exceeds 10%
of the total number of shares of common stock outstanding on a fully diluted
basis (i.e., taking into effect the potential conversions of all outstanding
options, warrants, preferred stock and other convertible equity securities, into
Common Stock of the Company); provided, however, that a reduction in the number
of shares outstanding on a fully diluted basis shall not cause a reduction in
the number of Awards previously granted. Shares that have been (a) reserved for
issuance under Options which have expired or otherwise terminated without
issuance of the underlying Shares, (b) reserved for issuance or issued under an
Award granted hereunder but are forfeited or are repurchased by the Company at
the original issue price, or (c) reserved for issuance or issued under an Award
that otherwise terminates without Shares being issued, shall be available for
issuance. At all times the Company shall reserve and keep available a sufficient
number of Shares as shall be required to satisfy the requirements of all
outstanding Options granted under this Plan and all other outstanding but
unvested Awards granted under this Plan.

         3. ELIGIBILITY. ISO's (as defined in Section 5 below) may be granted
only to employees (including officers and directors who are also employees) of
the Company or of a

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Parent or Subsidiary of the Company. All other Awards may be granted to
employees, officers, directors, consultants, independent contractors and
advisors of the Company or any Parent, Affiliate or Subsidiary of the Company.

         4. ADMINISTRATION.

              4.1 Committee Authority. This Plan will be administered by the
Committee or by the Board. Any power, authority or discretion granted to the
Committee may also be taken by the Board. Subject to the general purposes, terms
and conditions of this Plan, and to the direction of the Board, the Committee
will have full power to implement and carry out this Plan. Without limitation,
the Committee will have the authority to:

              a.   select persons to receive Awards;

              b.   determine the nature, extent, form and terms of Awards and
                   the number of Shares or other consideration subject to
                   Awards;

              c.   determine the vesting, exerciseability and payment of Awards;

              d.   correct any defect, supply any omission or reconcile any
                   inconsistency in this Plan, any Award or any Award Agreement;

              e.   determine whether Awards will be granted singly, in
                   combination with, in tandem with, in replacement of, or as
                   alternatives to, other Awards under this Plan or any other
                   incentive or compensation plan of the Company or any Parent
                   or Subsidiary of the Company;

              f.   prescribe, amend and rescind rules and regulations relating
                   to this Plan or any Award;

              g.   construe and interpret this Plan, any Award Agreement and any
                   other agreement or document executed pursuant to this Plan;

              h.   grant waivers of Plan or Award conditions;

              i.   determine whether an Award has been earned;

              j.   accelerate the vesting of any Award; and

              k.   make all other determinations necessary or advisable for the
                   administration of this Plan.

         The Committee shall have the authority, subject to the provisions of
the Plan, to establish, adopt, or revise such rules and regulations and to make
all such determinations relating to the Plan as it may deem necessary or
advisable for the administration of the Plan. The Committee's

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interpretation of the Plan or any documents evidencing Awards granted pursuant
thereto and all decisions and determinations by the Committee with respect to
the Plan shall be final, binding, and conclusive on all parties unless otherwise
determined by the Board.

              4.2 Committee Discretion. Any determination made by the Committee
with respect to any Award will be made in its sole discretion at the time of
grant of the Award or, unless in contravention of any express term of this Plan
or Award, at any later time, and such determination will be final and binding on
the Company and on all persons having an interest in any Award under this Plan.

         5. OPTIONS. The Committee may grant Options to eligible persons and
will determine whether such Options will be intended to be "Incentive Stock
Options" within the meaning of Section 422 of the Code or any successor section
thereof ("ISO's") or Nonqualified Stock Options ("NQSO's"), the number of Shares
subject to the Option, the Exercise Price of the Option, the period during which
the Option may be exercised, and all other terms and conditions of the Option,
subject to the following:

              5.1 Form of Option Grant. Each Option granted under this Plan will
be evidenced by an Award Agreement ("Stock Option Agreement"), which will
expressly identify the Option as an ISO or NQSO, and will be in such form and
contain such provisions (which need not be the same for each Participant) as the
Committee may from time to time approve, and which will comply with and be
subject to the terms and conditions of this Plan.

              5.2 Exercise Period. Options may be exercisable to the extent
vested within the times or upon the events determined by the Committee as set
forth in the Stock Option Agreement governing such Option; provided, however,
that no Option will be exercisable after the expiration of ten (10) years from
the date the Option is granted; and provided further that no ISO granted to a
person who directly or by attribution owns more than ten percent (10%) of the
total combined voting power of all classes of stock of the Company or of any
Parent or Subsidiary of the Company ("Ten Percent Stockholder") will be
exercisable after the expiration of five (5) years from the date the ISO is
granted. The Committee also may provide for Options to become exercisable at one
time or from time to time, periodically or otherwise, in such number of Shares
or percentage of Shares as the Committee determines.

              5.3 Exercise Price. The Exercise Price of an Option will be
determined by the Committee when the Option is granted and may be greater, less
than, or equal to the Fair Market Value of the Shares on the date of grant;
provided that: (i) the Exercise Price of an ISO will be not less than 100% of
the Fair Market Value of the Shares on the date of grant; and (ii) the Exercise
Price of any ISO granted to a Ten Percent Stockholder will not be less than 110%
of the Fair Market Value of the Shares on the date of grant. Payment for the
Shares purchased may be made in accordance with Section 8 of this Plan.

              5.4 Date of Grant. The date of grant of an Option will be the date
on which the Committee makes the determination to grant such Option, unless
otherwise specified by the

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Committee. The Stock Option Agreement and a copy of this Plan will be delivered
to the Participant within a reasonable time after the granting of the Option.

              5.5 Method of Exercise. Options may be exercised only by delivery
to the Company of a written stock option exercise agreement (the "Exercise
Agreement") in a form approved by the Committee (which need not be the same for
each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding Participant's investment
intent and access to information and other matters, if any, as may be required
or desirable by the Company to comply with applicable securities laws, together
with payment in full of the Exercise Price for the number of Shares being
purchased.

              5.6 Termination. Unless otherwise expressly provided in an Award
Agreement, exercise of an Option will always be subject to the following:

              a.   If the Participant is Terminated for any reason (including
                   voluntary Termination) other than death or Disability, then
                   the Participant may exercise such Participant's Options only
                   to the extent that such Options would have been exercisable
                   upon the Termination Date no later than three (3) months
                   after the Termination Date (or such shorter or longer time
                   period not exceeding five (5) years as may be determined by
                   the Committee, with any exercise beyond three (3) months
                   after the Termination Date deemed to be a NQSO), but in any
                   event, no later than the expiration date of the Options.

              b.   If the Participant is Terminated because of Participant's
                   death or Disability (or the Participant dies within three (3)
                   months after a Termination other than for Cause or because of
                   Participant's Disability), then Participant's Options may be
                   exercised only to the extent that such Options would have
                   been exercisable by Participant on the Termination Date and
                   must be exercised by Participant (or Participant's legal
                   representative or authorized assignee) no later than twelve
                   (12) months after the Termination Date (or such shorter or
                   longer time period not exceeding five (5) years as may be
                   determined by the Committee, with any such exercise beyond
                   twelve (12) months after the Termination Date when the
                   Termination is for Participant's death or Disability, deemed
                   to be a NQSO), but in any event no later than the expiration
                   date of the Options.

              c.   Notwithstanding the provisions in paragraph 5.6(a) above, if
                   a Participant is terminated for Cause, neither the
                   Participant, the Participant's estate nor such other person
                   who may then hold the Option shall be entitled to exercise
                   any Option with respect to any Shares whatsoever, after
                   termination of service, whether or not after termination of
                   service the Participant may receive payment from the Company
                   or Subsidiary for vacation pay, for services rendered prior
                   to termination, for services ren-

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                   dered for the day on which termination occurs, for salary in
                   lieu of notice, or for any other benefits. In making such
                   determination, the Board shall give the Participant an
                   opportunity to present to the Board evidence on his behalf.
                   For the purpose of this paragraph, termination of service
                   shall be deemed to occur on the date when the Company
                   dispatches notice or advice to the Participant that his
                   service is terminated.

              d.   If the Participant is not an employee or a director, the
                   Award Agreement shall specify treatment of the Award upon
                   Termination.

              5.7 Limitations on ISO. The aggregate Fair Market Value
(determined as of the date of grant) of Shares with respect to which ISO's are
exercisable for the first time by a Participant during any calendar year (under
this Plan or under any other incentive stock option plan of the Company, Parent
or Subsidiary of the Company) will not exceed $100,000. If the Fair Market Value
of Shares on the date of grant with respect to which ISO's are exercisable for
the first time by a Participant during any calendar year exceeds $100,000, then
the Options for the first $100,000 worth of Shares to become exercisable in such
calendar year will be ISO's and the Options for the amount in excess of $100,000
that become exercisable in that calendar year will be NQSO's. In the event that
the Code or the regulations promulgated thereunder are amended after the
Effective Date of this Plan to provide for a different limit on the Fair Market
Value of Shares permitted to be subject to ISO's, such different limit will be
automatically incorporated herein and will apply to any Options granted after
the effective date of such amendment.

              5.8 Modification, Extension or Renewal. The Committee may modify,
extend or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that, except as expressly provided for in the
Plan or an Award Agreement, any such action may not, without the written consent
of a Participant, impair any of such Participant's rights under any Option
previously granted. Any outstanding ISO that is modified, extended, renewed or
otherwise altered will be treated in accordance with Section 424(h) of the Code.
The Committee may, by a written notice to the affected Participants, reduce the
Exercise Price of outstanding Options without the consent of such Participants;
provided, however, that the Exercise Price may not be reduced below the minimum
Exercise Price that would be permitted under Section 5.3 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

              5.9 Limitations on Exercise. The Committee may specify a
reasonable minimum number of Shares that may be purchased on any exercise of an
Option, provided that such minimum number will not prevent Participant from
exercising the Option for the full number of Shares for which it is then
exercisable.

              5.10 No Disqualification. Notwithstanding any other provision in
this Plan, no term of this Plan relating to ISO's will be interpreted, amended
or altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422

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of the Code or, without the consent of the Participant affected, to disqualify
any ISO under Section 422 of the Code.

         6. RESTRICTED STOCK. A Restricted Stock Award is an offer by the
Company to sell to an eligible person Shares that are subject to restrictions.
The Committee will determine to whom an offer will be made, the number of Shares
the person may purchase, the price to be paid (the "Purchase Price"), the
restrictions to which the Shares will be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

              6.1 Form of Restricted Stock Award. All purchases under a
Restricted Stock Award made pursuant to this Plan will be evidenced by an Award
Agreement ("Restricted Stock Purchase Agreement") that will be in such form
(which need not be the same for each Participant) as the Committee will from
time to time approve, and shall comply with and be subject to the terms and
conditions of this Plan. The offer of Restricted Stock shall will be accepted by
the Participant's execution and delivery of the Restricted Stock Purchase
Agreement and full payment for the Shares to the Company not later than thirty
(30) days after the date the Restricted Stock Purchase Agreement is delivered to
the person. If such person does not execute and deliver the Restricted Stock
Purchase Agreement along with full payment for the Shares to the Company within
thirty (30) days, then the offer shall terminate, unless otherwise determined by
the Committee.

              6.2 Purchase Price. The Purchase Price of Shares sold pursuant to
a Restricted Stock Award will be determined by the Committee on the date the
Restricted Stock Award is granted. Payment of the Purchase Price shall be made
in accordance with Section 8 of this Plan.

              6.3 Terms of Restricted Stock Awards. Restricted Stock Awards
shall be subject to such restrictions as the Committee may impose. These
restrictions may be based upon completion of a specified number of years of
service with the Company or upon completion of the performance goals as set out
in advance in the Participant's individual Restricted Stock Purchase Agreement.
Restricted Stock Awards may vary from Participant to Participant and between
groups of Participants. Prior to the grant of a Restricted Stock Award, the
Committee shall: (a) determine the nature, length and starting date of any
Performance Period for the Restricted Stock Award; (b) select from among the
Performance Factors to be used to measure performance goals, if any; and (c)
determine the number of Shares that may be awarded to the Participant. Prior to
the payment of any Restricted Stock Award, the Committee shall determine the
extent to which such Restricted Stock Award has been earned. Performance Periods
may overlap and Participants may participate simultaneously with respect to
Restricted Stock Awards that are subject to different Performance Periods and
having different performance goals and other criteria.

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              6.4 Stock Restrictions. Each certificate representing Restricted
Stock awarded under the Plan shall bear the following legend until the lapse of
all restrictions with respect to such Stock:

              "TRANSFER OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS
              RESTRICTED PURSUANT TO THE TERMS OF A RESTRICTED STOCK AGREEMENT,
              DATED AS OF _______, BETWEEN OPTICARE HEALTH SYSTEMS, INC., AND
              ____________. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL
              EXECUTIVE OFFICES OF OPTICARE HEALTH SYSTEMS, INC."

         Stop transfer orders shall be entered with the Company's transfer agent
and registrar against the transfer of legended securities.

              6.5 Termination During Performance Period. If a Participant is
Terminated during a Performance Period for any reason, then such Participant
will be entitled to payment (whether in Shares, cash or otherwise) with respect
to the Restricted Stock Award only to the extent earned as of the date of
Termination in accordance with the Restricted Stock Purchase Agreement, unless
the Committee will determine otherwise.

         7. STOCK BONUSES.

              7.1 Awards of Stock Bonuses. A Stock Bonus is an award of Shares
(which may consist of Restricted Stock) for services rendered to the Company or
any Parent or Subsidiary of the Company. A Stock Bonus may be awarded for past
services already rendered to the Company, or any Parent or Subsidiary of the
Company pursuant to an Award Agreement (the "Stock Bonus Agreement") that will
be in such form (which need not be the same for each Participant) as the
Committee will from time to time approve, and will comply with and be subject to
the terms and conditions of this Plan. A Stock Bonus may be awarded upon
satisfaction of such performance goals as are set out in advance in the
Participant's individual Award Agreement (the "Performance Stock Bonus
Agreement") that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan. Stock Bonuses may
vary from Participant to Participant and between groups of Participants, and may
be based upon the achievement of the Company, Parent or Subsidiary and/or
individual Performance Factors or upon such other criteria as the Committee may
determine.

              7.2 Terms of Stock Bonuses. The Committee will determine the
number of Shares to be awarded to the Participant. If the Stock Bonus is being
earned upon the satisfaction of performance goals pursuant to a Performance
Stock Bonus Agreement, then the Committee will: (a) determine the nature, length
and starting date of any Performance Period for each Stock Bonus; (b) select
from among the Performance Factors to be used to measure the performance, if
any; and (c) determine the number of Shares that may be awarded to the
Participant. Prior to the payment of any Stock Bonus, the Committee shall
determine the extent to which such Stock Bonuses have been earned. Performance
Periods may overlap and Participants may participate simultaneously with respect
to Stock Bonuses that are subject to different Performance Periods

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and different performance goals and other criteria. The number of Shares may be
fixed or may vary in accordance with such performance goals and criteria as may
be determined by the Committee. The Committee may adjust the performance goals
applicable to the Stock Bonuses to take into account changes in law and
accounting or tax rules and to make such adjustments as the Committee deems
necessary or appropriate to reflect the impact of extraordinary or unusual
items, events or circumstances to avoid windfalls or hardships.

              7.3 Form of Payment. The earned portion of a Stock Bonus may be
paid currently or on a deferred basis with such interest or dividend equivalent,
if any, as the Committee may determine. Payment may be made in the form of cash
or whole Shares or a combination thereof, either in a lump sum payment or in
installments, all as the Committee will determine.

         8. PAYMENT FOR SHARE PURCHASES.

              8.1 Payment. Payment for Shares purchased pursuant to this Plan
may be made in cash (by check) or, where expressly approved for the Participant
by the Committee or where expressly indicated in the Participants Award
Agreement and where permitted by law:

              a.   by cancellation of indebtedness of the Company to the
                   Participant;

              b.   by surrender of shares that either: (1) have been owned by
                   Participant for more than six (6) months and have been paid
                   for within the meaning of SEC Rule 144 (and, if such shares
                   were purchased from the Company by use of a promissory note,
                   such note has been fully paid with respect to such shares);
                   or (2) were obtained by Participant in the public market;

              c.   by tender of a promissory note having such terms as may be
                   approved by the Committee and bearing interest at a rate
                   sufficient to avoid imputation of income under Sections 483
                   and 1274 of the Code;

              d.   by waiver of compensation due or accrued to the Participant
                   for services rendered;

              e.   with respect only to purchases upon exercise of an Option,
                   and provided that a public market for the Company's stock
                   exists:

                   (1)  through a "same day sale" commitment from the
                        Participant and a broker-dealer that is a member of the
                        National Association of Securities Dealers (an "NASD
                        Dealer") whereby the Participant irrevocably elects to
                        exercise the Option and to sell a portion of the Shares
                        so purchased to pay for the Exercise Price, and whereby
                        the NASD Dealer irrevocably commits upon receipt of such
                        Shares to forward the Exercise Price directly to the
                        Company; or

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                   (2)  through a "margin" commitment from the Participant and a
                        NASD Dealer whereby the Participant irrevocably elects
                        to exercise the Option and to pledge the Shares so
                        purchased to the NASD Dealer in a margin account as
                        security for a loan from the NASD Dealer in the amount
                        of the Exercise Price, and whereby the NASD Dealer
                        irrevocably commits upon receipt of such Shares to
                        forward the Exercise Price directly to the Company; or

              f.   by any combination of the foregoing or other method expressly
                   approved by the Committee.

              8.2 Loan Guarantees. The Committee may help the Participant pay
for Shares purchased under this Plan by authorizing a guarantee by the Company
of a third-party loan to the Participant.

         9. WITHHOLDING TAXES.

              9.1 Withholding Generally. Whenever Shares are to be issued in
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an
amount sufficient to satisfy federal, state, and local withholding tax
requirements.

              9.2 Stock Withholding. When, under applicable tax laws, a
Participant incurs tax liability in connection with the exercise or vesting of
any Award that is subject to tax withholding and the Participant is obligated to
pay the Company the amount required to be withheld, the Committee may in its
sole discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld, determined on the date that the amount of tax to be
withheld is to be determined. All elections by a Participant to have Shares
withheld for this purpose will be made in accordance with the requirements
established by the Committee and be in writing in a form acceptable to the
Committee.

         10. PRIVILEGES OF STOCK OWNERSHIP. No Participant will have any of the
rights of a stockholder with respect to any Shares until the Shares are issued
to the Participant. After Shares are issued to the Participant, the Participant
will be a stockholder and have all the rights of a stockholder with respect to
such Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
Restricted Stock; provided, further, that the Participant will have no right to

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retain such stock dividends or stock distributions with respect to Shares that
are repurchased at the Participant's Purchase Price or Exercise Price pursuant
to Section 12.

         11. TRANSFERABILITY. Awards granted under this Plan, and any interest
therein, shall not be transferable or assignable by a Participant, and may not
be made subject to execution, attachment or similar process, otherwise than by
will or by the laws of descent and distribution, except as determined by the
Committee. During the lifetime of the Participant an Award will be exercisable
only by the Participant (or by a duly appointed conservator, committee, or
similar fiduciary acting for a disabled Participant), and any elections with
respect to an Award may be made only by the Participant unless otherwise
determined by the Committee and set forth in the Award Agreement with respect to
Awards that are not ISO's.

         12. RESTRICTIONS ON SHARES. At the discretion of the Committee, the
Company may reserve to itself and/or its assignee(s) in the Award Agreement a
right to repurchase a portion of or all Unvested Shares held by a Participant
following such Participant's Termination at any time within three (3) months
after the later of Participant's Termination Date and the date Participant
purchases Shares under this Plan, for cash and/or cancellation of purchase money
indebtedness, at the Participant's Exercise Price or Purchase Price, as the case
may be.

         13. CERTIFICATES. All certificates for Shares or other securities
delivered under this Plan will be subject to such stock transfer orders, legends
and other restrictions, consistent with the terms of the Awards, as the
Committee may deem necessary or advisable, including restrictions under any
applicable federal, state or foreign securities law, or any rules, regulations
and other requirements of the SEC or any stock exchange or automated quotation
system upon which the Shares may be listed or quoted.

         14. ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a
Participant's Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause a
legend or legends referencing such restrictions to be placed on the
certificates. Any Participant who is permitted to execute a promissory note as
partial or full consideration for the purchase of Shares under this Plan will be
required to pledge and deposit with the Company all or part of the Shares so
purchased as collateral to secure the payment of Participant's obligation to the
Company under the promissory note; provided, however, that the Committee may
require or accept other or additional forms of collateral to secure the payment
of such obligation and, in any event, the Company will have full recourse
against the Participant under the promissory note notwithstanding any pledge of
the Participant's Shares or other collateral. In connection with any pledge of
the Shares, Participant will be required to execute and deliver a written pledge
agreement in such form as the Committee will from time to time approve. In the
discretion of the Committee, the pledge agreement may provide that the Shares
purchased with the promissory note may be released from the pledge on a pro rata
basis as the promissory note is paid.

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         15. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or
from time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards. The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, Shares (including
Restricted Stock) or other consideration, based on such terms and conditions as
the Committee and the Participant may agree.

         16. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award will not
be effective unless such Award is in compliance with all applicable federal and
state securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance. However, in the
event that an Award is not effective as discussed in the preceding sentence, the
Company will use reasonable efforts to modify, revise or renew such Award in a
manner so as to make the Award effective. Notwithstanding any other provision in
this Plan, the Company will have no obligation to issue or deliver certificates
for Shares under this Plan prior to: (a) obtaining any approvals from
governmental agencies that the Company determines are necessary or advisable;
and/or (b) completion of any registration or other qualification of such Shares
under any state or federal law or ruling of any governmental body that the
Company determines to be necessary or advisable. The Company will be under no
obligation to register the Shares with the SEC or to effect compliance with the
registration, qualification or listing requirements of any state securities
laws, stock exchange or automated quotation system, and the Company will have no
liability for any inability or failure to do so.

         17. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted
under this Plan will confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary of the Company or limit in any way the right
of the Company or any Parent or Subsidiary of the Company to terminate
Participant's employment or other relationship at any time, with or without
cause.

         18. CORPORATE TRANSACTIONS.

              18.1 Assumption or Replacement of Awards by Successor. If a
Change-of-Control Event occurs:

                   (i)  the successor company in any Change-of-Control Event
                        may, if approved in writing by the Committee prior to
                        any Change-of-Control Event:

                        (1) substitute equivalent Options or Awards or provide
                        substantially similar consideration to Participants as
                        was provided to stockholders (after taking into account
                        the existing provisions of the Awards), or

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                        (2) issue, in place of outstanding Shares of the Company
                        held by the Participant, substantially similar shares or
                        substantially similar other securities or substantially
                        similar other property subject to repurchase
                        restrictions no less favorable to the Participant.

                   (ii) Notwithstanding anything in this Plan to the contrary,
                        the Committee may, in its sole discretion, provide that
                        the vesting of any or all Options and Awards granted
                        pursuant to this Plan will accelerate immediately prior
                        to the consummation of a Change-of-Control Event. If the
                        Committee exercises such discretion with respect to
                        Options, such Options will become exercisable in full
                        prior to the consummation of such event at such time and
                        on such conditions as the Committee determines, and if
                        such Options are not exercised prior to the consummation
                        of such event, they shall terminate at such time as
                        determined by the Committee.

              18.2 Other Treatment of Awards. Subject to any rights and
limitations set forth in Section 18.1, if a Change-of-Control Event occurs or
has occurred, any outstanding Awards will be treated as provided in the
applicable agreement or plan of merger, consolidation, dissolution, liquidation,
or sale of assets constituting the Change-of-Control Event.

              18.3 Assumption of Awards by the Company. The Company, from time
to time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either (a) granting an Award under this Plan in substitution of
such other company's award, or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. If the Company assumes an award granted by another
company, the terms and conditions of such award will remain unchanged (except
that the exercise price and the number and nature of Shares issuable upon
exercise of any such option will be adjusted appropriately pursuant to Section
424(a) of the Code). If the Company elects to grant a new Option rather than
assuming an existing option, such new Option may be granted with a similarly
adjusted Exercise Price.

              18.4 Adjustment of Shares. In the event that the number of
outstanding shares is changed by a stock dividend, recapitalization, stock
split, reverse stock split, subdivision, combination, reclassification or
similar change in the capital structure of the Company without consideration,
then (a) the number of Shares reserved for issuance under this Plan, (b) the
Exercise Prices of and number of Shares subject to outstanding Options, and (c)
the number of Shares subject to other outstanding Awards will be proportionately
adjusted, subject to any required action by the Board or the stockholders of the
Company and compliance with applicable securities laws; provided, however, that
fractions of a Share will not be issued but will either be

                                      A-12
<PAGE>

replaced by a cash payment equal to the Fair Market Value of such fraction of a
Share or will be rounded up to the nearest whole Share, as determined by the
Committee.

         19. ADOPTION AND STOCKHOLDER APPROVAL. This amendment and restatement
to the 2002 Stock Incentive Plan will become effective on the date that this
Plan is approved by the stockholders of the Company, consistent with applicable
laws (the "Effective Date").

         20. TERM OF PLAN. Unless earlier terminated as provided herein, this
Plan will terminate ten (10) years from the date this Plan is adopted by the
Board or, if earlier, the date of stockholder approval.

         21. AMENDMENT OR TERMINATION OF PLAN. The Board may at any time
terminate or amend this Plan in any respect, including without limitation
amendment of any form of Award Agreement or instrument to be executed pursuant
to this Plan; provided, however, that the Board will not, without the approval
of the stockholders of the Company, amend this Plan in any manner that
applicable law or regulation requires such stockholder approval.

         22. EFFECT OF SECTION 162(M) OF THE CODE. The Plan, and all Awards
issued thereunder, are intended to be exempt from the application of Section
162(m) of the Code, which restricts under certain circumstances the Federal
income tax deduction for compensation paid by a public company to named
executives in excess of $1 million per year. The exemption is based on Treasury
Regulation Section 1.162-27(f) as in effect on the effective date of the Plan,
with the understanding that such regulation generally exempts from the
application of Section 162(m) of the Code compensation paid pursuant to a plan
that existed before a company becomes publicly held. The Committee may, without
stockholder approval (unless otherwise required to comply with Rule 16b-3 under
the Exchange Act), amend the Plan retroactively and/or prospectively to the
extent it determines necessary in order to comply with any subsequent
clarification of Section 162(m) of the Code required to preserve the Company's
Federal income tax deduction for compensation paid pursuant to the Plan. To the
extent that the Committee determines as of the Date of Grant of an Award that
(i) the Award is intended to comply with Section 162(m) of the Code and (ii) the
exemption described above is no longer available with respect to such Award,
such Award shall not be effective until any stockholder approval required under
Section 162(m) of the Code has been obtained.

                                      A-13
<PAGE>

         23. GENERAL.

              23.1 Additional Provisions of an Award. Awards under the Plan also
may be subject to such other provisions (whether or not applicable to the
benefit awarded to any other Participant) as the Committee determines
appropriate including, without limitation, provisions to assist the Participant
in financing the purchase of Stock upon the exercise of Options, provisions for
the forfeiture of or restrictions on resale or other disposition of shares of
Stock acquired under any Award, provisions giving the Company the right to
repurchase shares of Stock acquired under any Award in the event the Participant
elects to dispose of such shares, provisions which restrict a Participant's
ability to sell Shares for a period of time under certain circumstances, and
provisions to comply with Federal and state securities laws and Federal and
state tax withholding requirements. Any such provisions shall be reflected in
the applicable Award Agreement.

              23.2. Claim to Awards and Employment Rights. Unless otherwise
expressly agreed in writing by the Company, no employee or other person shall
have any claim or right to be granted an Award under the Plan or, having been
selected for the grant of an Award, to be selected for a grant of any other
Award. Neither the Plan nor any action taken hereunder shall be construed as
giving any Participant any right to be retained in the employ or service of the
Company, a Subsidiary or an Affiliate.

              23.3. Designation and Change of Beneficiary. Each Participant
shall file with the Committee a written designation of one or more persons as
the beneficiary who shall be entitled to receive the amounts payable with
respect to an Award of Restricted Stock, if any, due under the Plan upon his
death. A Participant may, from time to time, revoke or change his beneficiary
designation without the consent of any prior beneficiary by filing a new
designation with the Committee. The last such designation received by the
Committee shall be controlling; provided, however, that no designation, or
change or revocation thereof, shall be effective unless received by the
Committee prior to the Participant's death, and in no event shall it be
effective as of a date prior to such receipt. If no beneficiary designation is
filed by the Participant, the beneficiary shall be deemed to be his or her
spouse or, if the Participant is unmarried at the time of death, his or her
estate.

              23.4. Payments to Persons Other Than Participants. If the
Committee shall find that any person to whom any amount is payable under the
Plan is unable to care for his or her affairs because of illness or accident, or
is a minor, or is otherwise legally incompetent or incapacitated or has died,
then any payment due to such person or such person's estate (unless a prior
claim therefor has been made by a duly appointed legal representative) may, if
the Committee so directs the Company, be paid to such person's spouse, child,
relative, an institution maintaining or having custody of such person, or any
other person deemed by the Committee, in its absolute discretion, to be a proper
recipient on behalf of such person otherwise entitled to payment. Any such
payment shall be a complete discharge of the liability of the Committee and the
Company therefor.

              23.5. No Liability of Committee Members. No member of the
Committee shall be personally liable by reason of any contract or other
instrument executed by such Committee

                                      A-14
<PAGE>

member or on his or her behalf in his or her capacity as a member of the
Committee nor for any mistake of judgment made in good faith, and the Company
shall indemnify and hold harmless each member of the Committee and each other
employee, officer or director of the Company to whom any duty or power relating
to the administration or interpretation of the Plan may be allocated or
delegated, against any cost or expense (including counsel fees) or liability
(including any sum paid in settlement of a claim) arising out of any act or
omission to act in connection with the Plan unless arising out of such person's
own fraud or willful bad faith; provided, however, that approval of the Board
shall be required for the payment of any amount in settlement of a claim against
any such person. The foregoing right of indemnification shall not be exclusive
of any other rights of indemnification to which such persons may be entitled
under the Company's Articles of Incorporation or By-Laws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

              23.6. Governing law. The Plan and all agreements hereunder shall
be governed by and construed in accordance with the internal laws of the State
of Delaware without regard to the principles of conflicts of law thereof.

              23.7. Funding. No provision of the Plan shall require the Company,
for the purpose of satisfying any obligations under the Plan, to purchase assets
or place any assets in a trust or other entity to which contributions are made
or otherwise to segregate any assets, nor shall the Company maintain separate
bank accounts, books, records or other evidence of the existence of a segregated
or separately maintained or administered fund for such purposes. Participants
shall have no rights under the Plan other than as general unsecured creditors of
the Company, except that insofar as they may have become entitled to payment of
additional compensation by performance of services, they shall have the same
rights as other employees under general law.

              23.8. Reliance on Reports. Each member of the Committee and each
member of the Board shall be fully justified in relying, acting or failing or
refusing to act, and shall not be liable for having so relied, acted or failed
or refused to act in good faith, upon any report made by the independent public
accountant of the Company and its Subsidiaries and Affiliates and upon any other
information furnished in connection with the Plan by any person or persons other
than himself.

              23.9. Relationship to Other Benefits. No payment under the Plan
shall be taken into account in determining any benefits under any pension,
retirement, profit sharing, group insurance or other benefit plan of the Company
or any Subsidiary except as otherwise specifically provided in such other plan.

              23.10. Expenses. The expenses of administering the Plan shall be
borne by the Company and its Subsidiaries and Affiliates.

              23.11. Pronouns. Masculine pronouns and other words of masculine
gender shall refer to both men and women.

                                      A-15
<PAGE>

              23.12. Titles and Headings. The titles and headings of the
sections in the Plan are for convenience of reference only, and in the event of
any conflict, the text of the Plan, rather than such titles or headings shall
control.

              23.13. Termination of Employment. For all purposes herein, a
person who transfers from employment or service with the Company to employment
or service with a Subsidiary or Affiliate or vice versa shall not be deemed to
have terminated employment or service with the Company, a Subsidiary or
Affiliate.

              23.14 Nonexclusivity of The Plan. Neither the adoption of this
Plan by the Board, the submission of this Plan to the stockholders of the
Company for approval, nor any provision of this Plan will be construed as
creating any limitations on the power of the Board to adopt such incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock options and bonuses otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable only in specific
cases.

         24. DEFINITIONS. As used in this Plan, the following terms will have
the following meanings:

              "Affiliate" means any affiliate of the Company within the meaning
              of 17 CFR ss.230.405.

              "Award" means any award under this Plan, including any Option,
              Restricted Stock or Stock Bonus.

              "Award Agreement" means, with respect to each Award, the signed
              written agreement between the Company and the Participant setting
              forth the terms and conditions of the Award.

              "Board" means the Board of Directors of the Company.

              "Cause" means the Company, a Subsidiary or Affiliate having cause
              to terminate a Participant's employment or service under any
              existing employment, consulting or any other agreement between the
              Participant and the Company or a Subsidiary or Affiliate or, in
              the absence of such an employment, consulting or other agreement,
              upon (i) the determination by the Committee that the Participant
              has ceased to perform his duties to the Company, a Subsidiary or
              Affiliate (other than as a result of his incapacity due to
              physical or mental illness or injury), which failure amounts to an
              intentional and extended neglect of his duties to such party, (ii)
              the Committee's determination that the Participant has engaged or
              is about to engage in conduct materially injurious to the Company,
              a Subsidiary or Affiliate or (iii) the Participant having been
              convicted of a felony or a misdemeanor carrying a jail sentence of
              six months or more.

                                      A-16
<PAGE>

              "Change-of-Control Event" means any one or more of the following:

                   (i)    a dissolution or liquidation of the Company;

                   (ii)   a merger or consolidation in which the Company is not
                          the surviving corporation (other than a merger or
                          consolidation with a wholly-owned subsidiary, a
                          reincorporation of the Company in a different
                          jurisdiction, or other transaction in which there is
                          no substantial change in the stockholders of the
                          Company or their relative stock holdings and the
                          Awards granted under this Plan are assumed, converted
                          or replaced by the successor corporation, which
                          assumption will be binding on all Participants);

                   (iii)  a merger in which the Company is the surviving
                          corporation but after which the stockholders of the
                          Company immediately prior to such merger (other than
                          any stockholder that merges, or which owns or controls
                          another corporation that merges, with the Company in
                          such merger) cease to own their Shares or other equity
                          interest in the Company;

                   (iv)   the sale of substantially all of the assets of the
                          Company; or

                   (v)    the acquisition, sale, or transfer of more than 50% of
                          the outstanding capital stock of the Company by tender
                          offer or similar transaction, other than by Palisade
                          Capital Equity Partnership, L.P. or its Affiliates.

              However, for purposes of this Plan, the consummation of the
              transactions contemplated by the Restructure Agreement, dated
              December 17, 2001, among Palisade Concentrated Equity Partnership,
              L.P., Dean J. Yimoyines and the Company, as amended from time to
              time, including the issue of shares of capital stock of the
              Company in connection therewith, shall not be deemed to be a
              Change of Control Event.

              "Code" means the Internal Revenue Code of 1986, as amended.
              Reference in the Plan to any section of the Code shall be deemed
              to include any amendments or successor provisions to such section
              and any regulations under such section.

              "Common Stock" means the outstanding common stock, par value $0.01
              per share, of the Company, or any other class of securities into
              which substantially all the Common Stock is converted or for which
              substantially all the Common Stock is exchanged.

                                      A-17
<PAGE>

              "Committee" means the Compensation Committee, the Stock Option
              Committee or such other committee appointed by the Board
              consisting solely of two or more Outside Directors or the Board.

              "Company" means OptiCare Health Systems, Inc., a Delaware
              corporation, or any successor corporation.

              "Disability" means a disability, whether temporary or permanent,
              partial or total, as determined by the Committee.

              "Exchange Act" means the Securities Exchange Act of 1934, as
              amended.

              "Exercise Price" means the price at which a holder of an Option
              may purchase the Shares issuable upon exercise of the Option.

              "Fair Market Value" means, as of any date, the value of a share of
              the Company's Common Stock determined as follows:

                   a.   if such Common Stock is publicly traded and is then
                        listed on a national securities exchange, its closing
                        price on the date of determination on the principal
                        national securities exchange on which the Common Stock
                        is listed or admitted to trading;

                   b.   if such Common Stock is publicly traded and is then
                        quoted on the NASDAQ National Market, its closing price
                        on the NASDAQ National Market on the date of
                        determination as reported in The Wall Street Journal;

                   c.   if such Common Stock is publicly traded but is not
                        quoted on the NASDAQ National Market nor listed or
                        admitted to trading on a national securities exchange,
                        the average of the closing bid and asked prices on the
                        date of determination as reported in The Wall Street
                        Journal or, if not reported in The Wall Street Journal,
                        as reported by any reputable publisher or quotation
                        service, as determined by the Committee in good faith;

                   d.   if none of the foregoing is applicable, by the Committee
                        in good faith based upon factors available at the time
                        of the determination, including, but not limited to,
                        capital raising activities of the Company.

              "Insider" means an officer or director of the Company or any other
              person whose transactions in the Company's Common Stock are
              subject to Section 16 of the Exchange Act.

                                      A-18
<PAGE>

              "NASD Dealer" has the meaning set forth in Section 8(e).

              "NQSO's" has the meaning set forth in Section 5.

              "Option" means an award of an option to purchase Shares pursuant
              to Section 5.

              "Outside Director" means a person who is (i) a "nonemployee
              director" within the meaning of Rule 16b-3 under the Exchange Act,
              or any successor rule or regulation and (ii) an "outside director"
              within the meaning of Section 162(m) of the Code.

              "Parent" means any corporation or other legal entity (other than
              the Company) in an unbroken chain of corporations and/or other
              legal entities ending with the Company if each of such
              corporations and other legal entities other than the Company owns
              stock, other equity securities or other equity interests
              possessing 50% or more of the total combined voting power of all
              classes of stock, equity securities or other equity interests in
              one of the other corporations or other entities in such chain.

              "Participant" means a person who receives an Award under this
              Plan.

              "Performance Factors" means the factors selected by the Committee
              from time to time, including, but not limited to, the following
              measures to determine whether the performance goals established by
              the Committee and applicable to Awards have been satisfied:

                   a.   Net revenue and/or net revenue growth;

                   b.   Earnings before income taxes and amortization and/or
                        earnings before income taxes and amortization growth;

                   c.   Operating income and/or operating income growth;

                   d.   Net income and/or net income growth;

                   e.   Earnings per share and/or earnings per share growth;

                   f.   Total stockholder return and/or total stockholder return
                        growth;

                   g.   Return on equity;

                   h.   Operating cash flow;

                   i.   Adjusted operating cash flow return on income;

                                      A-19
<PAGE>

                   j.   Economic value added;

                   k.   Successful capital raises;

                   l.   Individual confidential business objectives; and

                   m.   Other factors deemed reasonable and appropriate by the
                        Committee.

              "Performance Period" means the period of service determined by the
              Committee, not to exceed five years, during which years of service
              or performance is to be measured for Restricted Stock Awards or
              Stock Bonuses.

              "Plan" means the OptiCare Health Systems, Inc. Amended and
              Restated 2002 Stock Incentive Plan, as amended and/or restated
              from time to time.

              "Restricted Stock Award" means an award of Shares pursuant to
              Section 6.

              "SEC" means the Securities and Exchange Commission.

              "Securities Act" means the Securities Act of 1933, as amended.

              "Shares" means shares of the Company's Common Stock reserved for
              issuance under this Plan, as adjusted pursuant to Section 18, and
              any successor security.

              "Stock Bonus" means an award of Shares, or cash in lieu of Shares,
              pursuant to Section 7.

              "Subsidiary" means any corporation or other legal entity (other
              than the Company) in an unbroken chain of corporations and/or
              other legal entities beginning with the Company if each of the
              corporations and entities other than the last corporation or
              entity in the unbroken chain owns stock, other equity securities
              or other equity interests possessing 50% or more of the total
              combined voting power of all classes of stock, other equity
              securities or other equity interests in one of the other
              corporations or entities in such chain.

              "Ten Percent Stockholder" has the meaning set forth in Section
              5.2.

              "Termination" or "Terminated" means, for purposes of this Plan
              with respect to a Participant, that the Participant has for any
              reason ceased to provide services as an employee, officer,
              director, consultant, independent contractor, or advisor to the
              Company or a Parent or Subsidiary of the Company. An employee will
              not be deemed to have ceased to provide services in the case of
              (i) sick leave, (ii) military leave, or (iii) any other leave of
              absence approved by the Committee, provided, that such leave is
              for a period of not more than 90 days, unless re-employment

                                      A-20
<PAGE>

              upon the expiration of such leave is guaranteed by contract or
              statute or unless provided otherwise pursuant to formal policy
              adopted from time to time by the Company and issued and
              promulgated to employees in writing. In the case of any employee
              on an approved leave of absence, the Committee may make such
              provisions respecting suspension of vesting of the Award while on
              leave from the employ of the Company or a Subsidiary as it may
              deem appropriate, except that in no event may an Option be
              exercised after the expiration of the term set forth in the Option
              agreement. The Committee will have sole discretion to determine
              whether a Participant has ceased to provide services and the
              effective date on which the Participant ceased to provide services
              (the "Termination Date").

              "Unvested Shares" means "Unvested Shares" as defined in the Award
              Agreement.

              "Vested Shares" means "Vested Shares" as defined in the Award
              Agreement.

                                      A-21<PAGE>

                                                     May 21, 2002
Lance A. Wilkes
20 Columbia Street
Hartford, CT  06106

Dear Lance:

         Thank you for accepting a position as President and Chief Operating
Officer with OptiCare Health Systems, Inc. ("Company"). We look forward to
working with you and eagerly anticipate your arrival, as there is much to do
here. Your expected start date is June 10, 2002.

         This letter shall confirm the terms of your employment with the
Company, which are subject to Board of Director approval and shall not
constitute a valid offer of employment until such approval is obtained.
Additionally, you will serve in this position at the pleasure of the Board of
Directors. As President and Chief Operating Officer, you will be an executive
officer of the Company who will be responsible for managing the day to day
operations of the Company, its subsidiaries and/or affiliates and executing
strategic initiatives as directed by the Board of Directors and the Chief
Executive Officer of the Company.

         Your annual base salary will be $210,000.00. You are eligible for an
annual bonus based upon performance metrics to be established by the Company for
you and Dean Yimoyines, the Chairman and Chief Executive Officer. Additionally,
the Company will award you 600,000 options to purchase the Company's common
stock with an exercise price equal to the fair market value on the date of
grant, 200,000 options to purchase the Company's common stock with an exercise
price equal to $1.00, and 200,000 options to purchase the Company's common stock
with an exercise price equal to $2.00. These options will be awarded from the
Company's Amended and Restated 2002 Stock Incentive Plan and will vest over 4
years with 25% vesting after each year of service is completed. The Company will
also pay you $500.00 per month for a car allowance and will cover all costs
associated with your health insurance benefits. Additionally, the Company will
provide life insurance equal to one time your annual salary. You will also be
eligible to participate in any other benefit program the Company may offer from
time to time. You are eligible for four weeks paid vacation and participation in
the company's 401(k) plan wherein the Company will match 50% of the first 4% of
your annual salary you deposit in the 401(k) plan after one year of completed
service.

         Additionally, should the Company separate your employment without
cause, you will be entitled to three months base salary as severance.
Additionally, in consideration of the foregoing and more specifically your stock
option grant the Company shall require you to agree not to compete with the
company for a period of eighteen months after cessation of employment with the
Company as more specifically stated as follows:
<PAGE>

 COVENANTS NOT TO COMPETE.
 ------------------------

         (a)During the term of your employment by the Company and for a period
         of eighteen (18) months immediately following the termination of such
         employment (such period to be extended to include any period of
         violation or period of time required for litigation to enforce this
         covenant) (the "Non-Competition Period"), that you shall not engage in
         a business competitive to the several businesses of the Company, its
         subsidiaries and affiliates are engaged in, which currently includes
         (1) the managed eye care business, (2) the optical buying group
         business, (3) the business of managing, owning or affiliating with the
         practices of ophthalmologists, optometrists, opticians, ambulatory or
         refractive surgery facilities or providing services to such facilities
         and shall not, without the prior written consent of the Company, render
         services directly or indirectly to any Conflicting Organization as
         defined below, except that employment may be accepted with a
         Conflicting Organization whose business is diversified and which, as to
         part of its business, is not a Conflicting Organization; provided, that
         the Company, prior to the acceptance of such employment, shall receive
         from such Conflicting Organization and from the you written assurances
         satisfactory to the Company that the you will not render services
         directly or indirectly in connection with any Conflicting Product as
         defined below. The term "Conflicting Organization," as used herein,
         means any individual or organization that is engaged in researching,
         developing, marketing or selling a Conflicting Product. The term
         "Conflicting Product," as used herein, means any process or service of
         any individual or organization, which competes, or would compete, with
         a product, process or service of the Company, its subsidiaries and
         affiliates, which currently includes (1) the managed eye care business,
         (2) the optical buying group business, (3) the business of managing,
         owning or affiliating with the practices of ophthalmologists,
         optometrists, opticians, ambulatory or refractive surgery facilities or
         providing services to such facilities.

         (b) The Company's obligation to make severance payments to you as
         stated above shall immediately cease upon the violation by you of the
         covenants set forth above. Additionally, you also agree that if you
         violate this covenant that you will forfeit any stock options granted
         pursuant to this agreement or in the future and will return any monies
         received as a result of an exercise of any option grant pursuant to
         this agreement or in the future.

         (c) Further, you acknowledge that breach of the foregoing covenant not
         to compete shall cause irreparable harm to the Company and you
         acknowledge that in addition to any other remedy at law or equity the
         Company may have, and in consideration thereof, you agree to the
         granting of injunction to prevent you and/or stop you from violating
         the above covenant.

         (d) Additionally you acknowledge that such a covenant is reasonable and
         necessary to protect the interests of the Company and will not prevent
         you from earning a livelihood.

           Further, should the Company should there be a change in control in
the Company as that term is defined in the Amended and Restated 2002 Stock
Incentive Plan, your stock option grants shall become immediately vested. Please
indicate your agreement with these terms by signing below.

<PAGE>

         Thank you again for joining our team and we look forward to working
with you. Should you have any questions please do not hesitate to contact me.

                                          Sincerely,

                                          Dean J. Yimoyines
                                          Chief Executive Officer and President
                                          OptiCare Health Systems, Inc.

Agreed and Accepted this 27 day of  June, 2002

-----------------------------------
Lance A. Wilkes

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