NEITHER THIS COMMON STOCK
PURCHASE WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON
EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933 ACT, AS AMENDED (THE “1933 ACT”) OR THE SECURITES
LAW OF ANY STATE, AND NEITHER THIS COMMON STOCK PURCHASE WARRANT OR
SUCH SHARES MAY BE SOLD OR OTHERWISE TRANSFERRED OTHER THAN (A) TO
THE COMPANY, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS, OR (C)
REGISTRATION UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES
LAWS.
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DENTAL PATIENT CARE AMERICA,
INC.
COMMON STOCK PURCHASE
WARRANT
Holder:
Heartland Dental Care, Inc.
1200 Network Centre, Suite 2
Effingham, Illinois 62401
Attn: John Slack
Executive Vice President
and Chief Financial Officer
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Expiration Date:
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November 15, 2011
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Exercise Price per Share: $ 0.25
DENTAL PATIENT CARE AMERICA,
INC ., Utah corporation
(the “ Company ”) in consideration of ten
dollars ($10.00) and other good and valuable consideration the
receipt of which is hereby acknowledged, hereby grants to
HEARTLAND DENTAL CARE, INC ., or its registered assigns (the
“ Warrant Holder ”) the right and option
to purchase from the Company that number of shares that when issued
will be equal to (i) the product of (a) a fraction, the numerator
of which is the actual cumulative amount of loan proceeds funded
under that certain Loan, Security and Warrant Agreement of even
date herewith by and among the Company, Subsidiaries of the Company
and the Warrant Holder, and the denominator of which is $1,250,000,
multiplied times (b) ten percent (10%), of (ii) the total number of
issued and outstanding shares of common stock, on a fully diluted
basis, on the Exercise Date net of shares issued as a result of
prior partial exercises of common stock, no par value (the “
Common Stock ”), of the Company (each such
share, a “ Warrant Share ” and all such
shares, the “ Warrant Shares ”) in
exchange for (1) this Warrant and (2) $0.25 per share in cash or in
shares of Common Stock (the “ Exercise Price
”), at any time and from time to time beginning the first
anniversary of the date hereof and continuing through 5:00 p.m.
Utah time, on the Expiration Date, and subject to the following
terms and conditions:
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CHGO1\30855548.5
1.
Registration of Warrant. The Company shall register this
Warrant upon records to be maintained by the Company for that
purpose (the “ Warrant Register ”), in
the name of the record Warrant Holder hereof from time to time. The
Company may deem and treat the registered Warrant Holder of this
Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Warrant Holder, and for
all other purposes, and the Company shall not be affected by notice
to the contrary.
2.
Investment Representation. The Warrant Holder by accepting
this Warrant represents that the Warrant Holder is acquiring this
Warrant for its own account or the account of an affiliate for
investment purposes and not with the view to any offering or
distribution and that the Warrant Holder will not sell or otherwise
dispose of this Warrant or the underlying Warrant Shares in
violation of applicable securities laws. The Warrant Holder
acknowledges that the certificates representing any Warrant Shares
will bear a legend indicating that they have not been registered
under the United States Securities Act of 1933, as amended (the
“ 1933 Act ”) and may not be sold by the
Warrant Holder except pursuant to an effective registration
statement or pursuant to an exemption from registration
requirements of the 1933 Act and in accordance with federal and
state securities laws. “ Person ” means
an individual, partnership, firm, limited liability company, trust,
joint venture, association, corporation, or any other legal
entity.
3.
Validity of Warrant and Issue of Shares. The Company
represents and warrants that this Warrant has been duly authorized
and validly issued and warrants and agrees that all of Common Stock
that may be issued upon the exercise of the rights represented by
this Warrant will, when issued upon such exercise, be duly
authorized, validly issued, fully paid and nonassessable and free
from all taxes, liens and charges with respect to the issue
thereof. The Company further warrants and agrees that during the
period within which the rights represented by this Warrant may be
exercised, the Company will at all times have authorized and
reserved a sufficient number of Common Stock to provide for the
exercise of the rights represented by this Warrant.
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4.
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Registration of Transfers and
Exchange of Warrants.
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a. Subject to compliance with the legend set forth
on the face of this Warrant, the Company shall register the
transfer of any portion of this Warrant in the Warrant in the
Warrant Register, upon surrender of this Warrant with the Form of
Assignment attached hereto duly completed and signed, to the
Company at the office specified in or pursuant to Section 9. Upon
any such registration or transfer, a new warrant to purchase Common
Stock, in substantially the form of this Warrant (any such new
warrant, a “ New Warrant ”), evidencing
the portion of this Warrant so transferred shall be issued to the
transferee and a New Warrant evidencing the remaining portion of
this Warrant not so transferred, if any, shall be issued to the
transferring Warrant Holder. The acceptance of the New Warrant by
the transferee thereof shall be deemed the acceptance of such
transferee of all of the rights and obligations of a Warrant Holder
of a Warrant.
b . This Warrant is exchangeable, upon the
surrender hereof by the Warrant Holder at the office of the Company
specified in or pursuant to Section 9 for one or more New Warrants,
evidencing in the aggregate the right to purchase the number of
Warrant Shares which may then be purchased hereunder. Any such New
Warrant will be dated the date of such exchange.
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CHGO1\30855548.5
a. Within three (3) trading days after delivery to
the Company of this Warrant and the Form of Election to Purchase
attached hereto duly completed and signed, at its address set forth
in Section 9 the Company shall deliver to the Warrant Holder
written notice of the number of Warrant Shares purchasable upon
exercise of the Warrant., and thereafter, upon payment and delivery
of the Exercise Price per Warrant Share multiplied by the number of
Warrant Shares that the Warrant Holder intends to purchase, in
lawful money of the United States of America, in cash or by
certified or official bank check or checks, to the Company, all as
specified by the Warrant Holder in the Form of Election to
Purchase, the Company shall promptly (but in no event later than 7
business days after the Date of Exercise) issue or cause to be
issued and cause to be delivered to or upon the written order of
the Warrant Holder and in such name or names as the Warrant Holder
may designate (subject to the restrictions on transfer described in
the legend set forth on the face