Document:

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                                                                   EXHIBIT 10.12

                           WARRANT PURCHASE AGREEMENT

        THIS WARRANT PURCHASE AGREEMENT dated as of May 14, 2003, between Banc
of America Strategic Solutions, Inc., a Delaware corporation ("BofA"), FSC
Corp., a Massachusetts corporation ("FSC"), and Amsouth Bank, an Alabama state
bank ("Amsouth", and collectively with BofA and FSC, the "Sellers"), and Castle
Dental Centers, Inc., a Delaware corporation (the "Company").

        Whereas, the Sellers collectively own warrants ("Warrants") to purchase
49,875 shares of Series A-2 Convertible Preferred Stock, $.000001 par value per
share ("Series A-2 Stock") of the Company; and

        Whereas, BofA, FSC, and Amsouth own 25,161, 16,476 and 8,238 Warrants,
respectively;

        The Sellers and Company hereby agree as follows:

        1.      Purchase and Sale of Warrants. Each Seller hereby agrees to sell
its Warrants to the Company, and the Company hereby agrees to purchase the
Warrants, free and clear of all liens, security interests and other
encumbrances, in consideration for the payment by the Company to the Sellers of
an aggregate of $625,000.

        2.      Closing. The purchase and sale of the Warrants shall take place
as follows.

                (a)     Initial Payment. On the date (not later than May 16,
        2003) the Company satisfies in full all of the indebtedness
        outstanding under the Second Amended and Restated Credit Agreement
        dated as of July 19, 2002, entered into by and among the Company, Bank
        of America, N.A., as agent (in such capacity, "Agent") for the lenders
        named therein, BofA, Fleet National Bank ("Fleet"), AmSouth and Heller
        Financial, Inc., there shall be released to the Sellers an aggregate
        of $450,000 in cash (the "Initial Payment Date") being held in escrow
        by the Agent on the Company's behalf for that purpose.

                (b)     Second Payment. On the 30th day following the Initial
        Payment Date, the Company shall make an additional payment of $100,000
        in cash to the Sellers.

                (c)     Closing. On the 60th day following the Initial Payment
        Date (the "Closing Date"), the Company shall pay to the Sellers an
        aggregate of $75,000 in cash and, in exchange therefor (the
        "Closing"), each Seller shall deliver to the

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        Company the Warrants owned by such Seller, accompanied by duly
        executed stock powers or assignments.

                (d)     Acceleration. Notwithstanding anything herein to the
        contrary, at any time upon five days written notice to the Sellers,
        the Company shall have the right to accelerate the Closing Date by
        paying the remaining portion of the purchase price. On such date, the
        Company shall pay to the Sellers the remaining portion of the purchase
        price in cash and, in exchange therefor, each Seller shall deliver to
        the Company all of the Warrants being sold by such Seller hereunder,
        accompanied by duly executed stock powers or assignments.

        3.      Obligations Prior to Closing.

                (a)     Breach by the Company. In the event the Company fails to
        timely make any of the payments required herein or otherwise perform
        its obligations hereunder, any Seller may: (i) bring an action to
        enforce the provisions of this Agreement as written; or (ii) terminate
        this Agreement in all respects.

                (b)     Obligations of the Sellers. Prior to the Closing Date,
        and so long as the Company has timely performed its obligations
        hereunder, each Seller agrees that: (i) in the event it exercises any
        of the Warrants and/or converts the shares of Series A-2 Stock it
        receives upon such exercise into Common Stock, $.000001 par value
        ("Common Stock") (with the Warrants, the Series A-2 Stock issuable
        upon exercise of the Warrants, and Common Stock being issued upon
        conversion of the Series A-2 Stock being collectively referred to as
        the "Securities"), it shall transfer the Securities to the Company
        upon the Closing Date and (ii) it shall not sell, transfer, assign,
        pledge, hypothecate or otherwise grant an interest in or lien on any
        of the Securities to any party other than the Company.

        4.      Representations and Warranties of the Sellers. Each Seller,
severally and not jointly, represents and warrants to and agrees with the
Company that:

                (a)     Title to Warrants. Such Seller has valid and marketable
        title to the number of Warrants described above as owned by such
        Seller, free and clear of any security interests, liens, pledges,
        encumbrances or other adverse claims, and has full right, power, and
        authority to sell, transfer and deliver such Warrants to the Company.

                (b)     Authority of the Seller. The execution and delivery by
        such Seller of this Agreement have been duly authorized by such
        Seller, and this

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        Agreement, upon execution and delivery in accordance with its terms,
        will represent the valid, binding and enforceable obligations of such
        Seller in accordance with its terms.

                (c)     No Conflict. The consummation of the transactions
        contemplated by this Agreement will not result in the breach of or
        constitute a default under any agreement, instrument, law or court
        decree to which such Seller is a party or by which such Seller is
        bound.

        5.      Representations and Warranties of the Company. The Company
represents and warrants to each Seller that:

                (a)     Corporate Authority. The execution, delivery and
        performance by the Company of this Agreement has been duly authorized
        by the Board of Directors of the Company, no further corporate action
        is necessary on the part of the Company to make this Agreement valid
        and binding upon the Company and enforceable in accordance with its
        terms, and this Agreement is valid and binding upon the Company,
        enforceable in accordance with its terms.

                (b)     No Conflict. The consummation of the transactions
        contemplated by this Agreement will not result in the breach of or
        constitute a default under the certificate of incorporation or by-laws
        of the Company or any agreement, instrument or court decree to which
        the Company is a party or by which it is bound.

        6.      Consent. The Sellers hereby agree and consent to the following
actions to be taken by the Company, such action to be made effective upon or as
soon as practicable following the execution of this Agreement:

                (a)     Termination of Stockholders Agreement. Termination of
        the Stockholders Agreement dated as of July 19, 2002, by and among the
        Company, the Sellers, Heller Financial, Inc., a Delaware corporation,
        Midwest Mezzanine Fund II, L.P., a Delaware limited partnership, and
        James M. Usdan.

                (b)     Termination of Registration Rights Agreement.
        Termination of the rights of the Sellers, Heller Financial, Inc.,
        Midwest Mezzanine Fund II, L.P., James M. Usdan under the Registration
        Rights Agreement dated as of July 19, 2002 ("Registration Rights
        Agreement"), by and among the Company, the Sellers, Heller Financial,
        Inc., Midwest Mezzanine Fund II, L.P., James M. Usdan and the
        stockholders listed on Exhibit A of such Agreement. Capitalized terms
        used in this subparagraph (b) which are not otherwise defined herein
        shall have the meanings ascribed to them in the Registration Rights
        Agreement. Article II of the Registration Rights Agreement, providing
        for

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        demand registration rights that are not applicable to holders of
        Piggyback Stock, and any other references to such provisions in the
        Registration Rights Agreement are terminated in their entirety. All
        provisions of the Registration Rights Agreement applicable to Bank
        Warrants, Initiating Holders, New Money Notes, New Money Warrants,
        Series A-1 Stock, and Series A-2 Stock are terminated in their
        entirety. All provisions of the Registration Rights Agreement
        applicable to holders of Piggyback Stock shall remain in full force
        and effect solely with respect to the holders of Piggyback Stock.

                (c)     Amendment to Certificate of Designation. The filing with
        the Delaware Secretary of State of an amendment to the Certificate of
        Designations, Preferences and Rights of Series A-1 Convertible
        Preferred Stock and Series A-2 Convertible Preferred Stock of the
        Company (the "Certificate of Designations") amending such terms as
        provided on Exhibit A hereto. Each Seller hereby agrees to execute the
        consent attached hereto as Exhibit A authorizing the filing of the
        amendment to the Certificate of Designations and an amendment to the
        Certificate of Incorporation of the Company to increase the number of
        shares of Common Stock authorized to be issued by the Company from
        100,000,000 to 250,000,000.

                (d)     Establishment of New Preferred Stock. The filing by the
        Company with the Delaware Secretary of State of a Certificate of
        Designations, Preferences and Rights establishing a series of
        preferred stock, designated Series B Convertible Preferred Stock, par
        value $.000001 (the "Series B Certificate of Designations") which
        series of preferred stock will rank senior as to dividends and
        payments upon liquidation to the Series A-2 Stock and the Series A-1
        Convertible Preferred Stock, $.000001 par value per share (which will
        make such shares of preferred stock "Senior Securities", as defined in
        the Certificate of Designations). Each Seller hereby agrees to execute
        the consent attached hereto as Exhibit B authorizing the filing of the
        Series B Certificate of Designations.

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        7.      Treatment of Warrants following Conversion Date. Each Seller
hereby agrees that following the Conversion Date, as described in the
Certificate of Designations, the Warrants shall thereafter be exercisable for
Common Stock in accordance with the provisions of Section 8(b) of each Warrant
and no Series A-2 Convertible Preferred Stock will be issued upon such exercise.

        8.      Miscellaneous.

                (a)     Successors Bound. This Agreement shall be binding upon
        and inure to the benefit of the parties hereto and their respective
        successors and assigns.

                (b)     Amendment. This Agreement may be amended only by an
        instrument in writing executed by the parties hereto.

                (c)     Governing Law. This Agreement shall be construed and
        enforced under and in accordance with and governed by the law of the
        State of Texas.

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        IN WITNESS WHEREOF, this Agreement has been duly executed by the parties
hereto as of the date first above written.

                                     COMPANY

                                     Castle Dental Centers, Inc.

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

                                     SELLERS:

                                     Banc of America Strategic Solutions, Inc.

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

                                     FSC Corp.

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

                                     Amsouth Bank

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

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                                    Exhibit A

          Consent Authorizing Amendment to Certificate of Designations

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                                    Exhibit B

       Consent Authorizing Filing of Series B Certificate of Designations
                                       8Long-Term Incentive Plan

 
Exhibit 4.3

 
U.S.I. HOLDINGS CORPORATION

HASTINGS-TAPLEY INSURANCE AGENCY LONG-TERM INCENTIVE PLAN 
 
SECTION 1. Purposes; Definitions. The
purposes of the U.S.I. Holdings Corporation Hastings-Tapley Insurance Agency Long-Term Incentive Plan (the “Plan”) are to promote the ability of U.S.I. Holdings Corporation, a Delaware corporation (the “Company”), to retain
certain key employees who were employees of the Hastings-Tapley Insurance Agency, Inc. (“H-T”) immediately before the consummation of the merger of Hastings-Tapley Acquisition Sub, Inc., which was a wholly-owned subsidiary of the Company,
with and into H-T, and to enhance the growth and profitability of the Company. 
 
For purposes of the Plan, the following initially capitalized words and phrases will be defined as set forth below, unless the context clearly requires a different meaning: 
 
a. “Affiliate” means, with respect to a
Person, a Person that directly or indirectly controls, or is controlled by, or is under common control with such Person. 
 
b. “Award” means a grant of Stock Units pursuant to the provisions of the Plan. 
 
c. “Board” means the Board of Directors of
the Company, as constituted from time to time; provided, however, that if the Board appoints a Committee to perform some or all of the Board’s administrative functions hereunder pursuant to Section 2, references in the Plan to the
“Board” will be deemed to also refer to that Committee in connection with administrative matters to be performed by that Committee. 
 
d. “Committee” means a committee appointed by the Board in accordance with Section 2 of the Plan. 
 
e. “Common Stock” means the Company’s
voting common stock, $0.01 par value per share. 
 
f. “Grant Notice” means the Notice of Stock Unit Grant from the Company to the Participant. 
 
g. “Liquidity Event” means the earlier to occur of (i) the sale, transfer, assignment or other disposition (including by
merger, consolidation, recapitalization or otherwise) by stockholders of the Company, in one transaction or a series of related transactions, of at least a majority of the voting power represented by the then outstanding capital stock of the
Company, on a fully-diluted basis, taking into consideration all securities then convertible into Common Stock (regardless of vesting or other such restrictions), to one or more Persons or (ii) the sale of substantially all the assets of the Company
(other than a transfer of financial assets made in the ordinary course of business for the purpose of securitization) in one transaction or a series of related transactions, to one or more Persons. 
 
h. “Participant” means an employee of H-T to
whom an Award is granted. 

 
i.
“Person” means an individual, partnership, corporation, limited liability company, trust, joint venture, unincorporated association, or other entity or association, other than the Company or an Affiliate. 
 
j. “Share” means a share of Common Stock,
subject to substitution or adjustment as provided in Section 3(b) hereof. 
 
k. “Stock Unit” means a promise of the Company to deliver a Share at a specified future date. 
 
l. “Stock Unit Agreement” means, with respect to any particular Award, the written document that sets forth the terms of
that particular Award. 
 
m. “Vesting
Date” means, unless otherwise provided in the Stock Unit Agreement, the earlier to occur of (i) the first anniversary of the Date of Grant, as set forth in the Grant Notice or (ii) the date on which the Company consummates a Liquidity
Event. 
 
SECTION 2. Administration.

 
a. The Committee. The Plan shall be
administered by a Committee or, if no Committee has been appointed, by the Board. The Committee shall consist of two or more individuals appointed by the Board. The Committee shall have such authority and be responsible for such functions as the
Board has assigned to it. Any reference to the Board in the Plan shall be construed as a reference to the Committee to the extent the Board has assigned a particular function. 
 
b. Authority of the Board. Subject to the provisions of the Plan, the Board, acting through the
Committee, shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan. All decisions, interpretations and other actions of the Committee or Board shall be final and binding on
Participants and persons deriving rights from Participants. 
 
SECTION 3. Shares Subject to the Plan. 
 
a. Limitations. Shares offered under the Plan may be authorized but unissued Shares or treasury Shares. The aggregate number of Shares that may be issued under the Plan shall not exceed 150,000 Shares, subject to
adjustment pursuant to Section 3(b). The number of Shares that are subject to Stock Units at any time under the Plan shall not exceed the number of Shares that then remain available for issuance under the Plan. The Company, during the term of the
Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. 
 
b. Other Adjustment. In the event of any recapitalization, stock split or combination, stock dividend or other similar event or
transaction affecting the Shares, equitable substitutions or adjustments may be made by the Board, in its sole and absolute discretion, to the aggregate number, type and issuer of the securities reserved for issuance under the Plan and to the
number, type and issuer of Stock Units. 
 

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SECTION 4.
Eligibility. Key employees of H-T, as determined by the Board, are eligible to be granted Awards under the Plan. 
 
SECTION 5. Stock Units. 
 
a. Issuance. The Board will determine the time or times within which Stock Units may be issued and may be subject to restrictions,
and all other conditions of such Awards. 
 
b.
Stock Unit Agreement. Each Award of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the Participant and the Company. Such Award shall be subject to all applicable terms and conditions of the Plan and may be
subject to any other terms and conditions which are not inconsistent with the Plan and which the Board deems appropriate for inclusion in a Stock Unit Agreement. The provisions of the various Stock Unit Agreements entered into under the Plan need
not be identical. 
 
c. Delivery of
Certificates. Unless otherwise provided in the Participant’s Stock Unit Agreement, the certificates for all Shares subject to such Stock Unit Agreement will be delivered to the Participant, the Participant’s representative (if the
Participant has suffered a disability), or the Participant’s estate or heir (if the Participant has died), as soon as practicable following the Vesting Date. 
 
d. Alternative Delivery of Certificates. Notwithstanding anything to the contrary contained herein,
the Company may create a share reserve account with its transfer agent into which it shall place any Shares issued pursuant to a Stock Unit Agreement in lieu of delivering certificates for such Shares as otherwise set forth herein. 
 
SECTION 6. Amendments and Termination.
The Board may amend, alter or discontinue the Plan at any time, but no amendment, alteration or discontinuation will be made which would impair the rights of a Participant with respect to an Award, without that Participant’s consent.

 
SECTION 7. General Provisions.

 
a. The Board may require each Participant
to represent to and agree with the Company in writing that the Participant is acquiring securities of the Company for investment purposes and without a view to distribution thereof and as to such other matters as the Board believes are appropriate.
The certificate evidencing any securities issued pursuant to an Award may include any legend which the Board deems appropriate to reflect any restrictions on transfer and compliance with securities laws. 
 
All certificates for Shares or other securities delivered
under the Plan will be subject to such share-transfer orders and other restrictions as the Board may deem advisable under the rules, regulations, and other requirements of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934,
as amended, any stock exchange or inter-dealer quotation system upon which the Shares are then listed, and any other applicable federal or state securities laws, and the Board may cause a legend or legends to be put on any such certificates to make
appropriate reference to such restrictions. 
 

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b. Nothing
contained in the Plan will prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in
specific cases. 
 
c. The adoption of the Plan will
not confer upon any employee of the Company or any Affiliate any right to continued employment with the Company or such Affiliate, nor will it interfere in any way with the right of the Company or such Affiliate to terminate the employment of any of
its employees at any time. 
 
d. No later than the
date as of which an amount first becomes includible in the gross income of the Participant for U.S. federal income tax purposes with respect to any Award under the Plan, the Participant will pay to the Company, or make arrangements satisfactory to
the Board regarding the payment of, any U.S. federal, state, local or other taxes of any kind required by law to be withheld with respect to such amount. Unless otherwise determined by the Board, the minimum required withholding obligations may be
settled with Shares, including Shares that are part of the Award that gives rise to the withholding requirement. The obligations of the Company under the Plan will be conditioned on such payment or arrangements and the Company will, to the extent
permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant. 
 
SECTION 8. Effective Date of Plan. The Plan will become effective on the date that it is adopted by the Board .

 
SECTION 9. Term of Plan.
The Plan will continue in effect until terminated in accordance with Section 6. 
 
SECTION 10. Invalid Provisions. In the event that any provision of the Plan is found to be invalid or otherwise unenforceable under any applicable law, such invalidity or
unenforceability will not be construed as rendering any other provisions contained herein as invalid or unenforceable, and all such other provisions will be given full force and effect to the same extent as though the invalid or unenforceable
provision was not contained herein. 
 
SECTION
11. Governing Law. The Plan and all Awards granted hereunder will be governed by and construed in accordance with the laws and judicial decisions of the State of Delaware, without regard to the application of the principles of
conflicts of laws. 
 
SECTION 12.
Board Action. Notwithstanding anything to the contrary set forth in the Plan, any and all actions of the Board or Committee, as the case may be, taken under or in connection with the Plan and any agreements, instruments, documents,
certificates or other writings entered into, executed, granted, issued and/or delivered pursuant to the terms hereof, will be subject to and limited by any and all votes, consents, approvals, waivers or other actions of all or certain stockholders
of the Company or other persons required by: 
 
a.
the Company’s Certificate of Incorporation (as the same may be amended and/or restated from time to time); 
 

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b. the
Company’s Bylaws (as the same may be amended and/or restated from time to time); and 
 
c. any other agreement, instrument, document or writing now or hereafter existing, between or among the Company and its stockholders or other persons (as the same may be amended from time to time).

 
SECTION 13. Notices. Any
notice to be given to the Company pursuant to the provisions of the Plan shall be addressed to the Company in care of its Secretary (or such other person as the Company may designate from time to time) at its principal executive office, and any
notice to be given to a Participant shall be delivered personally or addressed to him or her at the address as reflected in the personnel records of the Company. Any such notice shall be deemed duly given on the date and at the time delivered via
personal, courier or recognized overnight delivery service or, if sent via telecopier, on the date and at the time telecopied with confirmation of delivery or, if mailed (which mailing shall be by overnight United States mail, return receipt
requested) at the time delivered. Delivery of a notice by telecopy (with confirmation) shall be permitted and shall be considered delivery of a notice notwithstanding that it is not an original that is received. 
 
ADOPTION AND APPROVAL OF PLAN 
 
Date Plan adopted by Board: May 21, 2003

 

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