Document:

SECURED SUBORDINATED NOTE 

 

	
            $1,250,000.00
 	
            Issue Date:  As of December 27, 2006
 

 

Dental Patient Care America, Inc., a Utah corporation (the “Company”), Dental Cooperative, Inc., a Utah corporation, U.S. Dentist Direct, Inc., a Utah corporation, and Dental Practice Transitions, Inc., a Utah corporation (collectively the “Maker”), for value received, hereby jointly and severally promise to pay to the order of Heartland Dental Care, Inc. a Delaware corporation (“Holder”), and registered assigns the stated principal amount of ONE MILLION TWO HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($1,250,000) or so much thereof as shall be funded (the “Principal Amount”). All cash
payments made on this Note shall be made to Holder by wire transfer of immediately available funds to Holder’s account at such bank in the United States as may be specified in writing by Holder to the Company.

•              Maturity Date. The Principal Amount of this Note shall be due and payable in full April 30, 2012 (the “Maturity Date”), in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. There shall be no amortization prior to maturity.

•              Interest. Interest on the Principal Amount outstanding from time to time shall be payable at the rate of ten percent (10%) per annum from the Issue Date set forth above until payment in full of the Principal Amount has been made. Interest payments shall be due and payable on the first day of each calendar quarter commencing January 1, 2007. During the first two years of the term of the Note, provided that no default or Event of Default has occurred or is continuing, payment of interest may be made, at the option of the Company, by issuing to Holder additional Notes of like kind and tenor in the amount of the accrued but unpaid interest of the Company. After the second anniversary of the Note, interest shall be
payable solely in cash. Any installment of the Principal Amount or interest not paid when due, by acceleration or otherwise, or upon the occurrence and during the continuation of an Event of Default, shall bear interest after the due date at the rate of 14.00% per annum. Such default interest shall be payable in cash.

	
             
 	
            •
 	
            Collateral.
 

(a)           Loan Agreement; Security Interest. By Loan, Security and Warrant Agreement of even date herewith (the “Loan Agreement”) Maker grants to Holder to secure this Note a security interest and lien on all of the tangible and intangible assets of Maker, whether now owned or existing, hereafter acquired or arising, or in which Maker now or hereafter has any rights, and wheresoever located including, without limitation: (i) Accounts, (ii) Accounts Receivable; (iii) Chattel Paper; (iv) Documents; (v) Equipment; (vi) General Intangibles; (vii) Instruments; (viii) Inventory; (ix) Investment Property; (x) all monies, residues,
and property of any kind now or at any time hereafter in the possession or under the control of Maker; (xi) Real Property; (xii) all accessions to, substitutions for, and all replacements, products and proceeds of the foregoing, including, without limitation, proceeds of insurance policies; and (xiii) all books and records (including, without limitation, customer lists, credit files, computer programs, print-outs and other computer materials and records) of Maker pertaining to any of the 

 

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foregoing (collectively, the “Collateral”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Loan Agreement.

(b)           Subordination. The Note shall be subordinated to liens securing indebtedness arising under existing Senior Credit Facilities (and any permitted refinancing thereof), if any, not to exceed $30,000,000 in the aggregate. 

(c)           Collections; Holder’s Right to Notify Debtors; Verification. Maker hereby authorizes Holder, at any time or times after an Event of Default to: (i) notify any or all debtors that the Accounts Receivable has been assigned to Holder and that Holder has a security interest therein; and (ii) direct such debtors to make all payments due from them to Maker upon the Accounts Receivable directly to a lock box designated by Holder. Holder shall promptly furnish Maker with a copy of any such notice sent. Any such notice, in Holder’s sole discretion, may be sent on Maker’s stationery, in which event Maker shall co-sign such notice with Holder.

(d)           Consignment of Inventory. Maker shall not at any time permit any Inventory to be placed on consignment with any person or entity without the prior written consent of Holder. Any consent to a consignment of Inventory may be conditioned upon Maker and consignee executing and delivering to Holder such consignment agreements and other instruments, financing statements and other documents as Holder shall request.

(e)           Proceeds of Equipment. Maker shall not, without the prior written consent of Holder, sell, lease, grant a security interest in or otherwise dispose of or encumber any Equipment, or any part thereof, provided that Maker may sell obsolete, redundant or unnecessary Equipment in the ordinary course of business upon written notice to Holder. Upon any disposition of Equipment, Maker shall, unless otherwise agreed to by Holder, deliver all the cash proceeds to Holder or its designee, which proceeds shall be applied to payments under the Note. The foregoing notwithstanding, Maker shall have the right to trade in obsolete, redundant or unnecessary Equipment in connection with the purchase of new Equipment, provided that such new
Equipment is subject to Holder’s security interest free and clear of all other liens and encumbrances.

(f)           Proceeds of Real Property. Maker shall not, without the prior written consent of Holder, sell, lease (as lessor or sublessor), grant a mortgage in or otherwise encumber any Real Property or any part thereof. Upon any such disposition, Maker shall deliver all of the proceeds thereof to Holder or its designee to be applied to the repayment of the Note. 

	
             
 	
            •
 	
            Events of Default.
 

(a)           Event of Default. An “Event of Default” shall occur hereunder if:  (i) Maker shall fail to pay any Principal Amount or interest hereunder when due (whether by maturity, acceleration or otherwise), (ii) any proceedings shall be instituted by or against Maker under the provisions of any Federal bankruptcy, reorganization, arrangement of debt, insolvency or receivership laws or similar state or Federal laws providing for the relief of debtors and is not discharged within thirty (30) days thereafter; (iii) Maker shall make an assignment for the benefit of its creditors; (iv) any proceedings shall be instituted by or against Maker for its liquidation
or dissolution and is not discharged within thirty (30) days thereafter or Maker’s business as a going concern shall terminate for any reason; (v) any covenant herein or in the Loan Agreement shall be breached and not cured or any representation or warranty herein, in the Loan Agreement or in any written statement pursuant hereto or thereto, report, financial statement or certificate made or delivered to Holder by Maker shall be untrue or incorrect in any material respect as to Maker, as 

 

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of the date when made or deemed made; (vi) Maker shall pledge, encumber, assign or transfer all or substantially all of its assets without the prior written consent of Holder; (vii) any material provision of any Collateral Document shall for any reason cease to be valid or enforceable in accordance with its terms or any security interest  created in the Collateral material in amount or nature shall cease to be a valid and perfected security interest or Lien (except as otherwise permitted herein or therein) (viii) Maker shall suffer an event of default as to any other indebtedness for borrowed money which shall not have been cured within applicable notice and grace periods or (ix) Maker suffers a default under the Loan Agreement, Warrant Registration Rights Agreement, Consulting Agreement or any other agreement with or obligation to Holder.

(b)           Acceleration of Maturity Date; Remedies. Upon the occurrence of an Event of Default, at the option of Holder, the entire unpaid Principal Amount together with interest thereon shall become immediately due and payable and if not then paid, Holder may proceed as provided herein below cumulatively and not exclusively. In no event shall Holder be obligated to fund any unfunded balance of this Note after the occurrence of an Event of Default. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy; provided, however, that
upon the occurrence of an Event of Default specified in Sections 4(a)(ii), (iii) (iv) and (vi) above, the entire unpaid Principal Amount together with interest thereon shall become due and payable without declaration, notice or demand by Holder. Upon the occurrence of an Event of Default, Holder may pursue all of its remedies at law and in equity.

No delay or failure on the part of Holder to exercise any right or remedy accruing to it hereunder, upon any Event of Default shall be held to be an abandonment thereof. No delay on the part of Holder in exercising any of their rights or remedies shall preclude it from the exercise thereof at any time during the continuance of any Event of Default. No waiver of an Event of Default shall be deemed a waiver of any subsequent Event of Default. All waivers under this Note must be in writing.

(c)           Waivers by Maker. Except as otherwise provided for in this Note and applicable law, Maker waives: (i) presentment, demand and protest and notice of presentment, dishonor, notice of intent to accelerate, notice of acceleration, protest, default, nonpayment, maturity, release, compromise, settlement, extension or renewal of any or all commercial paper, accounts, contract rights, documents, instruments, chattel paper and guaranties at any time held by Holder on which Maker may in any way be liable and hereby ratifies and confirms whatever Holder may do in this regard; (ii) all rights to notice and a hearing prior to Holder’s taking possession or control of, or to Holder’s replevy, attachment or levy upon, the
Collateral or any bond or security which might be required by any court prior to allowing Holder to exercise any of its remedies; and (iii) the benefit of all valuation, appraisal and exemption laws. Maker acknowledges that it has been advised by counsel of its choice with respect to this Note and the transactions evidenced by this Note. 

5.           Representations and Warranties. Maker, jointly and severally,. represent and warrant to Holder that the representations and warranties of Maker set forth in the Loan Agreement are true, accurate and compete. 

	
             
 	
            6.
 	
            General Provisions.
 

(a)         Maker intends and believes that each provision in this Note comports with all applicable local, state and Federal laws and judicial decisions. However, if any provision or provisions, or if any portion of any provision or provisions, in this Note is found by a court of law 

 

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to be in violation of any applicable law, administrative or judicial decision, or public policy, and if such court should declare such portion, provision or provisions of this Note to be illegal, invalid, unlawful, void or unenforceable as written, then it is the intent of all parties hereto that such portion, provision or provisions shall be given force to the fullest possible extent that they are legal, valid and enforceable, that the remainder of this Note shall be construed as if such illegal, invalid, unlawful, void or enforceable portion, provision or provisions were not contained therein, and that the rights, obligations and interest of Maker and Holder or Holders hereof under the remainder of this Note and all related documents and agreements shall continue in full force and effect. All agreements herein are expressly limited so that in no contingency or event whatsoever, whether
by reason of advancement of the proceeds hereof, acceleration of maturity of the unpaid principal balance hereof, or otherwise hereof, shall the amount paid or agreed to be paid to Holders hereof for the use, forbearance or detention of the money to be advanced hereunder exceed the highest lawful rate permissible under applicable usury laws. If, from any circumstance whatsoever, the fulfillment of any provision hereof, at the time performance of such provision shall be due, shall involve transcending the limit of validity proscribed by the law which a court of competent jurisdiction may deem applicable hereto then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity and if from any circumstance Holder hereof shall ever receive as interest an amount which would achieve the highest lawful rate, such amount which would be excessive interest shall applied to the reduction of the unpaid principal balance due hereunder and not to the payment of
interest.

 (b)         The captions to the various paragraphs hereof are for convenience of reference and are not to be considered as defining or limiting in any way the scope or intent of the provisions hereof.

 (c )       This Note and all the provisions hereof shall be binding upon Maker and its successors and assigns, and shall inure to the benefit of Holder and his successors and assigns.

(d)           No provision of this Note may be waived, changed, modified or discharged without an agreement in writing signed by the party against whom enforcement of such waiver, change, modification or discharge is sought.

(e)           Time is of the essence as to all dates set forth herein subject to any applicable grace or cure period or notice expressly provided herein; provided, however, that unless otherwise stated, whenever any payment to be made under this Note shall be stated to be due on a day other than a business day, such payment shall be made on the immediately preceding business day.

(f)           Maker agrees that its liability shall not in any manner be effected by any indulgence, extension of time, renewal, waiver, modification granted or consented to by Holder and Maker consents to any indulgences and all extensions of time, renewals, waivers, or modifications that may be granted by Holder with respect to the payment or other provisions of this Note, without notice to Maker and without affecting its liability hereunder.

(g)           If this Note is placed in the hands of attorneys for collection or is collected through any legal proceedings, Maker promises and agrees to pay, in addition to the principal, interest and other sums due and payable hereon, all costs of collecting or attempting to collect this Note, including reasonable attorneys’ fees and disbursements.

(h)           All parties now or hereafter liable with respect to this Note, whether Maker, principal, surety, guarantor, endorsee or otherwise hereby severally waive presentment for 

 

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payment, demand, notice of non-payment or dishonor, protest and notice of protest. No failure to accelerate the indebtedness evidence hereby, acceptance of a past due installment following the expiration of any cure period provided by this Note or applicable law, or indulgences granted from time to time shall be construed:  (i) as a novation of this Note or as a reinstatement of the indebtedness evidence hereby or as a waiver of such right of acceleration or of the right of Holder thereafter to insist upon strict compliance with the terms of this Note; or (ii) to prevent the exercise of such right of acceleration or any other right granted hereunder or by the laws of the State of California.

7.           Governing Law, Jurisdiction and Venue. This Note is a contract under the laws of the State of Illinois and for all purposes shall be construed in accordance with the laws of said State.

MAKER HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF ANY FEDERAL OR STATE COURT SITTING IN COOK COUNTY, ILLINOIS FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS NOTE. MAKER IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

TO THE EXTENT PERMITTED BY APPLICABLE LAW, MAKER HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY ON ANY CLAIM, COUNTERCLAIM, SETOFF, DEMAND, ACTION OR CAUSE OF ACTION ARISING OUT OF OR IN ANY WAY PERTAINING OR RELATING TO THIS NOTE OR TO ANY DEALINGS OF THE MAKER AND HOLDER WITH RESPECT TO THIS NOTE WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. MAKER AGREES THAT HOLDER MAY FILE A COPY OF THIS WAIVER WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED AGREEMENT OF MAKER IRREVOCABLY TO WAIVE ITS RIGHTS TO TRIAL BY JURY, AND THAT, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY SUCH DISPUTE OR CONTROVERSY BETWEEN MAKER AND HOLDER SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

8.           Holder’s Acknowledgements. By acceptance of this Note, Holder represents and warrants to Maker that:  (a) by reason of  Holder’s business and financial experience Holder has the capacity to protect Holder’s interests in this transaction and is accepting this Note and any shares of Common Stock of the Company issued under the terms of this Note for Holder’s own account and not with a present view to distribution; (b) Holder is an accredited investor, as that term is defined in Rule 501 of Regulation D promulgated under the Federal Securities Act of 1933, as amended; (c) Holder is aware that neither this Note nor any shares of Common Stock issuable as interest will be registered under the Federal Securities
Act of 1933, as amended, and accordingly, none may be transferred or sold without compliance with the registration requirements of said Act or the availability of an exemption from such registration, and this Note and any certificates evidencing shares of common stock issued hereunder shall bear a legend to such effect. 

 

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IN WITNESS WHEREOF, the undersigned has caused this instrument to be duly executed as of the Issue Date set forth above.

 

 

	
             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 	
             
 	
            DENTAL PATIENT CARE AMERICA, INC.,

a Utah corporation

 

 

 

By:   /s/                                                                                                                                                                                          

Name:_____________________________

Title:  _____________________________

 

DENTAL COOPERATIVE, INC.,

a Utah corporation

 

 

 

By:    /s/__________________________________

Name:_____________________________

Title:  ____________________________

 

U.S. DENTIST DIRECT, INC.,

a Utah corporation

 

 

 

By:   /s/  _________________________________

Name:  ___________________________

Title:  ___________________________

 

DENTAL PRACTICE TRANSITIONS, INC.,

a Utah corporation

 

 

 

By:   /s/__________________________________

Name:_____________________________

Title:  ____________________________
 
	
             
 	
             
 	
             
 

 

 

 

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CHGO1\30855496.5BENCHMARKING SERVICES AGREEMENT

THIS BENCHMARKING SERVICES AGREEMENT (this “Agreement”), made and entered into this 27th day of December 2006, by and between Dental Patient Care America, Inc., a Utah corporation, with an address at 2150 South 1300 East, Salt Lake City, Utah 84106 (hereinafter “DPCA”), and Heartland Dental Care, Inc., a Delaware corporation, with an address at 1200 Network Centre, Suite 2, Effingham, Illinois 62401(hereinafter “Heartland”):

Section 1.

SCOPE OF SERVICES

1.1. Services. Heartland agrees to provide benchmarking services to dental practices who have received funding through Stillwater National Bank and Trust Company in connection with an effective Affiliate Member Practice Purchase Agreement to which DPCA is a party (a “Covered Practice”). For purposes of this agreement, Heartland’s benchmarking services, as set forth on Exhibit A, are considered “Covered Services”. A practice does not become a Covered Practice until the Affiliate Member Practice Purchase Agreement is executed and delivered, and a practice ceases to be a Covered Practice when the Affiliate Member Practice Purchase Agreement expires or is terminated. The Covered Services shall include such benchmarking services as Heartland is offering to dental practices generally at the time such services are to be
rendered. Heartland may, in its discretion and for additional compensation, also provide additional consulting, coaching and continuing education services to the Covered Practices on an as requested basis.

1.2. Conduct of Services. All work shall be performed in a workmanlike and professional manner.

1.3. Method of Performing Services. Heartland shall have the right to determine the method, details, and means of performing the work to be performed for DPCA. DPCA shall, however, be entitled to exercise general power of supervision and control over the results of work performed by Heartland to assure satisfactory performance, including the right to inspect, the right to stop work, the right to make suggestions or recommendations as to the details of the work, and the right to propose modifications to the work.

1.4  Preferred Provider. Heartland shall be deemed by DPCA to be the preferred provider for consulting, coaching and continuing education services to be made available to the Covered Practices on a discounted basis from Heartland’s standard fees for such services.

1.5. Reporting. DPCA and Heartland shall develop appropriate administrative procedures for coordinating with each other. DPCA shall periodically provide Heartland with evaluations of Heartland’s performance.

1.6. Marketing Assistance. DPCA will provide assistance to Heartland in marketing Heartland’s services to Covered Practices and others in the dental market. 

Section 2.

TERM AND TERMINATION

2.1. Term. The term of this Agreement shall commence on the date set forth above and shall continue until the earlier of (i) the five year anniversary of this Agreement or (ii) the first date on which there are no Covered Practices.

2.2. Termination. This Agreement may be terminated by either party upon written notice if the other party breaches any material obligation provided hereunder and the breaching party fails to cure such breach within thirty (30)days following written notice of such breach. Notwithstanding the foregoing, the 

 

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termination of this Agreement by DPCA shall be of no force or effect unless and until that certain Subordinated Loan made to it by Hearland is repaid in full.

Section 3.

FEES, EXPENSES, AND PAYMENT

3.1. Fees. In consideration of the Covered Services  performed by Heartland, Heartland shall be paid by DPCA on a calendar quarterly basis, within thirty (30) days after the end of each calendar quarter, an amount equal to one percent of the aggregate collected revenues of the Covered Practices during the quarterly period in question. Each quarterly payment shall be accompanied by a schedule showing the collected revenue and fee by each Covered Practice which shall be certified as true and correct by the chief financial officer or chief accounting officer of DPCA. DPCA shall permit Heartland to audit or have its independent auditors audit the fee calculations and payments not more frequently than annually. A copy of the audit report shall be provided to DPCA. If the audit evidences an underpayment of the fee, DPCA shall promptly remit to
Heartland the amount of the underpayment. If the audit evidences an overpayment, then DPCA shall be entitled to a credit against the next fee payment(S) due hereunder in an amount equal to the overpayment. The cost of said audit shall be borne by Heartland, provided, however, that if said audit evidences an underpayment in the fees paid to Heartland of more than five percent (5%) in the aggregate, DPCA shall pay the cost of the audit. 

Additional consulting, coaching and continuing education services contracted for directly by the Covered Practices will be billed directly to the Covered Practices and paid within 30 days of the invoice date. Heartland will advise DPCA when it has been engaged directly by a Covered Practice. DPCA will use its commercially reasonable efforts to ensure that all invoices submitted by Heartland to the Covered Practices are paid in a timely manner.

3.2. Expenses. Except as otherwise provided herein, Heartland shall be responsible for all expenses it incurs under this Agreement. DCPA and each Covered Practice to which Heartland renders services in accordance with the second paragraph of Section 3.2 shall be responsible for paying to Heartland promptly and in all events within forty five (45) days of the month of billing, all actual out of pocked expenses (travel, food, lodging, etc.) incurred by Heartland or its officers, agents and employees in providing such services directly to the DPCA or the applicable Covered Practice. DPCA shall be under no obligation to reimburse any such other expenses other than as set forth in 3.1 herein. 

Section 4.

RESPONSIBILITIES OF CONSULTANT FOR TAXES AND OTHER MATTERS

4.1. Taxes. As an independent contractor, Heartland shall pay and report all federal and state income tax withholding, social security taxes, and unemployment insurance applicable to Heartland and its employees and agents. Neither Heartland nor its employees or agents shall not be entitled to participate in health or disability insurance, retirement benefits, or other welfare or pension benefits (if any) to which employees of DPCA or any Covered Practice may be entitled.

Section 5.

CONFIDENTIALITY

[

 

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5.1 Restrictions. Heartland acknowledges that in order to perform the services called for in this Agreement, it shall be necessary for DPCA and/or Covered Practices to disclose to Heartland certain Trade Secrets (defined below) of DPCA and/or Covered Practices. Heartland agrees that she shall not disclose, transfer, use, copy, or allow access to any such Trade Secrets to any third-parties, except as authorized by DPCA in writing. DPCA acknowledges that in order for Heartland to perform the services called for in this Agreement, it shall be necessary for Heartland to disclose to DPCA and the Covered Practices certain Trade Secrets (defined below) of Heartland. DPCA agrees that she shall not, and DPCA shall not cause the members of a Covered Practice to disclose, transfer, use, copy, or allow access to any such Trade Secrets to any
third-parties, except as authorized by Heartland in writing.

5.2 Trade Secrets Defined. For purposes of this Agreement, a “Trade Secret” shall mean any information (in written or unwritten form) designated as confidential by Heartland or DPCA and/or a Dental Practice, as the case may be,  and disclosed, observed or otherwise received by one party or a Covered Practice in connection with the performance of this Agreement;  and for such purpose each of Heartland and DPCA designate and acknowledge as confidential the following (without limitation)—(i) any technical data, information, process, procedure, and development plans for new products and services, (ii) business, sales and marketing information, including customer, personnel and contract information; and (iii) Heartland measurement and performance system information, procedures and reports;  provided, however, that Trade Secrets
shall not include information that is known to Heartland or DPCA, as applicable, entirely independent of the work hereunder, is or becomes publicly available other than as a result of a breach of this Agreement, or is disclosed to Heartland or DPCA (or a Covered Practice), as applicable, by a third party (other than a Dental Practice) who is not subject to any obligation of confidentiality with respect to such information.

 

5.3 Return of Materials. Upon termination of this Agreement and upon request, Heartland shall return to DPCA, or destroy, and DCPA shall return to Heartland or destroy, all materials involving any Trade Secrets of the other party and all memoranda, notes, records, drawings, manuals, computer programs, documentation, diskettes, and other documents or media pertaining to the business of the other party (including all copies of such materials); provided that each party shall be entitled to retain one copy of such materials in a sealed file to be used for evidentiary purposes only. This Section 5.3 is intended to apply to all materials made or compiled by Heartland as well as to all materials furnished to Heartland by anyone else in connection with Heartland’s work for DPCA and/or Dental
Practices which materials contain Trade Secrets.

 

5.4 Maintenance of Confidentiality. Heartland agrees to take all reasonable measures to protect the secrecy of and prevent the disclosure and unauthorized use of any Trade Secrets. Without limiting the foregoing, Heartland shall take at least those measures to protect the Trade Secrets that Heartland takes to protect its own confidential information. Third-parties to whom DPCA authorizes the disclosure of Trade Secrets will be required to enter into confidentiality arrangements similar to those contained herein. Heartland shall immediately notify DPCA in the event that she becomes aware of any unauthorized use or disclosure of Trade Secrets.

Section 6.

MISCELLANEOUS

6.1. Force Majeure. The parties shall not be liable for any failure to perform due to causes beyond their reasonable control.

6.2. Governing Law. This Agreement shall be governed and construed in all respects in accordance with the laws of the State of Utah.

 

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6.3. Independent Contractors. The parties are and shall be independent contractors to one another, and nothing herein shall be deemed to cause this Agreement to create an agency, partnership, or joint venture between the parties. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between DPCA and either Heartland or any employee or agent of Heartland.

6.4. Notices. All notices required or permitted hereunder shall be in writing addressed to the respective parties as set forth herein, unless another address shall have been designated, and shall be delivered by hand or by registered or certified mail, postage prepaid.

6.5. Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto relating to consulting arrangements and supersedes all prior representations, proposals, discussions, and communications, whether oral or in writing relating to consulting arrangements. This Agreement may be modified only in writing and shall be enforceable in accordance with its terms when signed by the party sought to be bound.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives, on the date and year first above-written.

 

	
            DENTAL PATIENT CARE AMERICA, INC.

 

 

 

By    /s/__________________________________

Its: 
 	
            HEARTLAND DENTAL CARE, INC.

 

 

 

By    /s/__________________________________

Its:
 

 

 

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EXHIBIT A

 

COVERED SERVICES

 

Benchmarking Services provided monthly:

	
             
 	
            Ø
 	
            MAPS Report  
 

Measurement and Performance Systems is a detailed data report covering the full scope of a dental practice including and not limited to patient flow, reappointment, hygiene/doctor reporting and efficiency, treatment planning, diagnosis, case acceptance, productivity, collections, scheduling effectiveness, productivity per patient base and per appointment. This multifaceted report includes operating statistics for each practice enrolled in the DPCA program.

 

	
             
 	
            Ø
 	
            Trend Analysis Report 
 

This is an individualized practice report that follows each practice’s progress in the area of the key metrics on a month-to-month basis. It shows 9 months at a time, year to date totals, year to date averages and at year end, shows data for the entire year.

 

	
             
 	
            Ø
 	
            Rankings Report
 

Key metrics from the MAPS report ranked from most to least. This report shows where each practice ranks compared to the other practices participating in the DPCA program.

 

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