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CONTRIBUTION AGREEMENT

Contribution Agreement

CONTRIBUTION AGREEMENT You are currently viewing:
This Contribution Agreement involves

AMERICAN DENTAL PARTNERS INC | CARE FOR KIDS ? USA, LLC, | CENTRAL?S TOOTH DOCTOR FOR KIDS, LLC, | A TOOTH DOCTOR FOR KIDS, LLC, | EAST VALLEY?S TOOTH DOCTOR, L.L.C., | ARIZONA?S TOOTH DOCTOR FOR KIDS ? GLOBE, LLC, | ARIZONA?S KIDS DENTAL CARE, LLC, | ARIZONA?S TOOTH DOCTOR, PC, | BRENCHLEY DENTAL CONTRACTING, PLC, | ERICKSON FAMILY TRUST | ERICKSON INVESTMENT LIMITED PARTNERSHIP, | ERICKSON CHILDREN?S EDUCATIONAL TRUST | JEFFREY T. ERICKSON | CHRISTOPHER BARNEY | EMERICO GOMEZ, JR., | PAUL BRENCHLEY | CHRISTE D. ERICKSON

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Title: CONTRIBUTION AGREEMENT
Governing Law: Delaware     Date: 12/4/2006
Industry: SVSBUS     Law Firm: Baker & Hostetler LLP; The Law Firm of Joseph M. Udall, PLC     Sector: SERVIC

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Contribution Agreement

Exhibit 10.1

CONTRIBUTION AGREEMENT

AMONG

CARE FOR KIDS – USA, LLC,

a Delaware limited liability company,

CENTRAL’S TOOTH DOCTOR FOR KIDS, LLC,

an Arizona limited liability company,

A TOOTH DOCTOR FOR KIDS, LLC,

a Nevada limited liability company,

EAST VALLEY’S TOOTH DOCTOR, L.L.C.,

an Arizona limited liability company,

ARIZONA’S TOOTH DOCTOR FOR KIDS – GLOBE, LLC,

an Arizona limited liability company,

ARIZONA’S KIDS DENTAL CARE, LLC,

an Arizona limited liability company,

ARIZONA’S TOOTH DOCTOR, PC,

an Arizona professional corporation,

BRENCHLEY DENTAL CONTRACTING, PLC,

an Arizona professional corporation,

ERICKSON FAMILY TRUST dated July 20, 2000,

with Christine E. Erickson and Jeffrey T. Erickson as Trustees,

ERICKSON INVESTMENT LIMITED PARTNERSHIP,

a Nevada limited partnership,

ERICKSON CHILDREN’S EDUCATIONAL TRUST dated December 29, 1999,

with Christine E. Erickson and Jeffrey T. Erickson as Trustees,

AND

JEFFREY T. ERICKSON, D.D.S.,

CHRISTOPHER BARNEY, D.D.S.,

EMERICO GOMEZ, JR., D.D.S.

PAUL BRENCHLEY, D.D.S.

CHRISTE D. ERICKSON

October 25, 2006


 

 

 

 

 

ARTICLE I

  

CONTRIBUTION OF PROPERTY

  

2

 

 

 

1.1.

  

Contribution of Property

  

2

 

 

 

1.2.

  

Excluded Assets

  

3

 

 

 

1.3.

  

Liabilities Assumed

  

3

 

 

 

1.4.

  

Consideration

  

4

 

 

 

1.5.

  

Closing

  

7

 

 

 

1.6.

  

Conveyance Documents

  

7

 

 

 

1.7.

  

Possession

  

8

 

 

 

ARTICLE II

  

REPRESENTATIONS AND WARRANTIES OF THE PARTIES

  

8

 

 

 

2.1.

  

Representations and Warranties of Care for Kids

  

8

 

 

 

2.2.

  

Representations and Warranties of Sellers and Owners

  

8

 

 

 

ARTICLE III

  

COVENANTS OF THE PARTIES

  

8

 

 

 

3.1.

  

Mutual Covenants

  

8

 

 

 

3.2.

  

Covenants of Tooth Doctor

  

9

 

 

 

3.3.

  

Closing Deliveries of Care for Kids

  

12

 

 

 

3.4.

  

Employment and Employee Benefits Matters

  

13

 

 

 

3.5.

  

Additional Terms

  

14

 

 

 

ARTICLE IV

  

INDEMNIFICATION

  

15

 

 

 

4.1.

  

Survival of Representations, Warranties, and Agreements

  

15

 

 

 

4.2.

  

Indemnification

  

15

 

 

 

4.3.

  

Limitations on Indemnification

  

16

 

 

 

4.4.

  

Procedure for Indemnification with Respect to Third-Party Claims

  

16

 

 

 

4.5.

  

Procedure for Indemnification with Respect to Non-Third-Party Claims

  

17

 

 

 

4.6.

  

Right of Setoff

  

18

 

 

 

ARTICLE V

  

MISCELLANEOUS

  

18

 

 

 

5.1.

  

Power of Attorney

  

18

 

 

 

5.2.

  

Notices

  

18

 

 

 

5.3.

  

Legal Representation; No Tax Advice

  

19

 

 

 

5.4

  

Non-Waiver

  

19

 

 

 

5.5.

  

Genders and Numbers

  

19

 

 

 

5.6.

  

Headings

  

19

 

 

 

5.7.

  

Counterparts

  

19

 

 

 

5.8.

  

Entire Agreement

  

20

 

-i-


 

 

 

 

 

5.9.

  

No Third Party Beneficiaries

  

20

 

 

 

5.10.

  

Governing Law

  

20

 

 

 

5.11.

  

Successors; Assignment

  

20

 

 

 

5.12.

  

Remedies

  

20

 

 

 

5.13.

  

Expenses

  

20

 

 

 

5.14.

  

Severability

  

20

 

 

 

5.15.

  

Further Assurances

  

20

 

 

 

5.16.

  

Financial Calculations

  

21

 

 

 

 

Exhibit 1.4(a)

 

Settlement Statement

Exhibit 1.4

 

Allocation of Contribution

Exhibit A

 

Representations and Warranties of Care for Kids

Exhibit B

 

Representations and Warranties of Tooth Doctor

Exhibit C

 

Additional Covenants; Conditions; and Terms

 

-ii-


DEFINED TERMS LOCATOR LIST

 

 

 

 

Term

  

Section

2007 EBITDA

  

1.4(d)

 

 

Accounts Receivable

  

1.1(h)

Acquisition Proposal

  

Exhibit C, Section 1(b)

Additional Documents

  

4.1(a)

ADP-CFK

  

1.4(d)

ADPI

  

1.4(d)

Affiliate

  

3.2(b), except Exhibit B, Section B.19(a) (for Section B.19 only) and Section B.21 (for Section B.21 only)

Affiliated Company

  

3.2(b)

Agent

  

5.1

Agreement

  

Introduction

AHCCCS

  

Background Information

Applicable Laws

  

Exhibit B, Section B.11

Arizona Subsidiary

  

Introduction

Assignable Permits

  

1.1(e)

Assignment and Assumption Agreement

  

1.4(b)

Assignment and Assumption of Lease

  

3.2(d)(viii)

Assignment, Assumption, and Amendment of Lease

  

3.2(d)(vii)

Assumed Contracts

  

1.1(d)

Assumed Liabilities

  

1.3

 

 

Brenchley PLC

  

Introduction

Business

  

Background Information

 

 

Care for Kids

  

Introduction

Cash Consideration

  

1.4(a)

Central

  

Introduction

Claim Event

  

3.4(b)(iv)

Closing

  

1.5

Closing Date

  

1.5

COBRA

  

3.4(b)(v)

Code

  

1.4

Contributed Property

  

1.1

Contribution

  

Background Information

Credit Balances

  

4.3(f)

 

-i-


 

 

 

Damages

  

4.2(a)

Dentist Agreements

  

1.1(l)

Dentistry Restricted Territory

  

3.2(b)

Doctor for Kids

  

Introduction

Dr. Barney

  

Introduction

Dr. Brenchley

  

Introduction

Dr. Erickson

  

Introduction

Dr. Gomez

  

Introduction

 

 

Earn Out Payment

  

1.4(d)

East Valley

  

Introduction

EBITDA

  

1.4(d)

Effective Time

  

1.5

EILP

  

Introduction

Employee Plans

  

Exhibit B, Section B.19(a)

Entity

  

Exhibit A, Section A.3

Environmental Laws

  

Exhibit B, Section B.11

Erickson Children’s Trust

  

Introduction

Erickson Living Trust

  

Introduction

ERISA

  

Exhibit B, Section B.19(a)

Estimated Closing Balance Sheet

  

Exhibit B, Section B.7(c)

Excluded Assets

  

1.2

Exhibit A

  

2.1

Exhibit B

  

2.2

Exhibit C

  

1.5

 

 

FFE, Inventory, and Supplies

  

1.1(a)

Financial Statements

  

Exhibit B, Section B.7(a)

Future Service Contracts

  

1.1(k)

 

 

Globe

  

Introduction

Goodwill

  

1.1(m)

Governmental Programs

  

Exhibit B, Section B.27

Governmental Reimbursement Laws

  

Exhibit B, Section B.27

 

 

Incorporated Documents

  

5.8

Indemnifiable Claims

  

4.2(b)

Indemnified Party

  

4.4(a)

Indemnifying Party

  

4.4(a)

Intangibles

  

1.1(f)

Interim Statements

  

Exhibit B, Section B.7(b)

Investment Questionnaire

  

3.2(d)(x)

 

 

KeyBank

  

Exhibit A, Section A.2(b)

KeyBank Credit Facility

  

Exhibit A, Section A.2(b)

Kids Dental

  

Introduction

 

-ii-


 

 

 

Majority-in-Interest

  

Exhibit C, Section 4

Material Adverse Effect

  

Exhibit B, Section B.9(a)

Material Agreement

  

Exhibit B, Section B.20

Ms. Erickson

  

Introduction

 

 

New Employees

  

3.4(b)(i)

New Employment Agreement

  

3.2(d)(v)

New Office Lease

  

3.2(d)(ix)