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Exhibit 4.26
April 14, 2000
Vision Twenty-One, Inc.
0000 Xxxxx Xxxxx Xxxx, Xxxxx 000
Xxxxx, XX 00000
Attention: Xxxxxxxx Xxxxxxxx, Chief Executive Officer
Gentlemen:
We refer to the Amended and Restated Credit Agreement dated as of July
1, 1998, as amended, between you and us (the "Credit Agreement"). All
capitalized terms used herein without definition shall have the same meaning
herein as such terms are defined in the Credit Agreement.
The Borrower has advised the Banks that the Borrower has entered into
an Agreement and Plan of Merger and Reorganization, dated as of February 10,
2000 (the "Merger Agreement"), among the Borrower, Opticare Health Systems,
Inc. (the "Parent"), and OC Acquisition Corp., a wholly-owned subsidiary of the
Parent ("Merger Sub"), pursuant to which the parties intend to merge Merger Sub
with and into the Borrower subject to the terms and conditions thereof which
include, among other things, restructuring the Obligations owing to the Banks
on terms and conditions mutually agreed upon by the Borrower and the Banks.
While the Borrower and the Banks have initiated discussions and due diligence
concerning the Merger and any proposed restructuring of the Obligations, the
Borrower acknowledges that the Banks have not consented to the Merger nor have
the Banks agreed to any terms and conditions relating to any restructuring of
the Obligations. In the meantime, however, the Borrower intends to continue to
sell a substantial number of the physician practice management groups operated
by the Borrower and its Subsidiaries (collectively being referred to herein as
the "PPM Businesses") and use a portion of the proceeds from the sale of the
PPM Businesses to meet its reasonable and necessary operating expenses.
To afford the Borrower an opportunity to proceed with the transactions
described above, the Borrower has requested that (i) the Banks extend the
temporary waiver period provided for in Sections 2.1 and 2.2 of that certain
Seventh Amendment and Waiver to Credit Agreement dated as of December 10, 1999,
among the Borrower, the Banks, and the Agent (the "Seventh Amendment") (as
further amended, in part, by a December 30, 1999, letter agreement, a February
29, 2000, letter agreement, and a March 24, 2000, letter agreement, in each
case between the Borrower, the Banks and the Agent) to the earlier of May 5,
2000, or the termination of the Merger Agreement pursuant to its terms (the
earlier of such dates being referred to herein as the "Waiver Termination
Date"), (ii) Bank of Montreal extend the Bridge Loan Period from April 14,
2000, to the Waiver Termination Date, and (iii) postpone the due date for the
payment
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Vision Twenty-One, Inc.
April 14, 2000
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of principal, interest and unused commitment fees otherwise due on or before
April 14, 2000, to the Waiver Termination Date. By signing below, the Banks
(including Bank of Montreal with respect to the Bridge Loan Commitment) hereby
agree to extend the waiver period provided in Sections 2.1 and 2.2 of the
Seventh Amendment from April 14, 2000, to the Waiver Termination Date, agree to
extend the Bridge Loan Period to the Waiver Termination Date, and agree to
postpone the due date for the payment of principal, interest, and unused
commitment fees otherwise due on or before April 14, 2000, to the Waiver
Termination Date, provided that:
(a) the Borrower agrees to promptly provide to the Banks
copies of any instruments and documents entered into or proposed to be
entered into in connection with the Merger (including, without
limitation, any executed shareholder lock-up agreements) and to
promptly advise the Banks of any termination, amendment, or waiver of
the Merger Agreement or of any material breach thereof by any party
thereto, in each case subject to its directors' fiduciary duties;
(b) until the Obligations are paid in full, the Borrower
shall provide to the Banks a weekly Budget pursuant to Section 1.14(f)
of the Credit Agreement and such Budget shall be subject to the
Approved Budget and reconciliation procedures set forth therein,
regardless of whether or not then being accompanied by a request for a
Borrowing of Bridge Loans;
(c) at all times on and after the date hereof (i) all
proceeds from the sale of any assets of the Borrower and its
Subsidiaries (including, without limitation, proceeds from the sale of
the PPM Businesses or any part thereof), and (ii) cash receipts
arising from the operation of the business of the Borrower and its
Subsidiaries not applied pursuant to an Approved Budget, shall in each
case be remitted promptly upon receipt to the Agent; and
(d) except to the extent applied to payments pursuant to an
Approved Budget or applied to the Obligations owing to the Banks,
proceeds received pursuant to clause (c) above shall be held by the
Agent as collateral for the remaining Obligations owing to the Banks
(the Agent hereby being granted a Lien on and right of set-off for the
benefit of the Banks against all such amounts so held).
The Borrower hereby acknowledges and agrees to the foregoing conditions. The
Borrower also hereby acknowledges and agrees that (i) the consummation of the
Merger and of any restructuring of the terms and conditions relating to the
Obligations shall in each case be subject to the Banks' consent, which may be
given or withheld in their discretion and (ii) any sale of the Borrower's or
its Subsidiaries' assets or businesses shall be subject to the prior written
consent of the Banks, and all proceeds from any such sale represent proceeds of
the Banks' Collateral, to be
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Vision Twenty-One, Inc.
April 14, 2000
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held by the Agent or applied to the Obligations pursuant to the terms of the
Credit Agreement as modified hereby.
Except as specifically modified hereby, all of the terms and
conditions of the Credit Agreement and the other Loan Documents shall stand and
remain unchanged and in full force and effect. This waiver shall become
effective upon the execution and delivery hereof by each of the Banks and the
Borrower as set forth below. This waiver may be executed in counterparts and by
different parties on separate counterpart signature pages, each of which shall
be an original and all of which taken together shall constitute one and the
same instrument. This waiver shall be governed by, and construed in accordance
with, the laws of the State of Illinois.
[SIGNATURE PAGES TO FOLLOW]
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Vision Twenty-One, Inc.
April 14, 2000
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This waiver letter is entered into by and among the parties hereto as
of the date first above written.
BANK OF MONTREAL, in its individual BANK ONE TEXAS, N.A.
capacity as a Bank and as Agent
By: /s/ Xxxx X. Xxxx By: /s/ Xxxxx X. Xxxxxxxx
-------------------------------------- --------------------------------
Name: Xxxx X. Xxxx Name: Xxxxx X. Xxxxxxxx
Title: Director
PACIFICA PARTNERS I, X.X. XXXXXXX PRIME RATE TRUST
By: Imperial Credit Asset Management, By: Pilgrim Investments, Inc.,
as its Investment Manager as its Investment Manager
By: /s/ Xxxx X. Xxxxx By: /s/ Xxxxxxx X. XxXxxxx
-------------------------------------- --------------------------------
Name: Xxxx X. Xxxxx Name: Xxxxxxx X. XxXxxxx CFA
Title: Vice President Title: Assistant Vice President
PILGRIM AMERICA HIGH INCOME XXXXXXX XXXXX BUSINESS FINANCIAL
INVESTMENTS LTD. SERVICES, INC.
By: Pilgrim Investments, Inc.,
as its Investment Manager By: /s/ Xxxx X. Xxxxxxx
-----------------------------
Name: Xxxx X. Xxxxxxx
Title: Vice President
By: /s/ Xxxxxxx X. XxXxxxx
--------------------------------------
Name: Xxxxxxx X. XxXxxxx CFA
Title: Assistant Vice President
Acknowledged and agreed to as of the date first above written.
VISION TWENTY-ONE, INC.
By: /s/ Xxxxxxxx X. Xxxxxxxx
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Name: Xxxxxxxx X. Xxxxxxxx
Title: CEO
