Amendment No. 1 to Amended and Restated Security Agreement

EXHIBIT 10.21

Amendment No. 1 to Amended and Restated Security Agreement

     This Amendment No. 1 to Amended and Restated Security Agreement (this “Amendment”) is entered into as of the Closing Date (as defined in the Credit Agreement defined below), by and between HearUSA, Inc. (formerly HEARx, LTD.), a Delaware corporation (the “Debtor”), and SIEMENS HEARING INSTRUMENTS, INC., a Delaware corporation (the “Secured Party”).

Preliminary Statements

     A. The Debtor and the Secured Party are parties to a certain Amended and Restated Security Agreement, dated as of February 10, 2006 (the “Security Agreement”). All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Security Agreement.

     B. The Debtor and the Secured Party have entered into a Second Amended and Restated Credit Agreement dated as of December 30, 2006 (as amended, supplemented or restated from time to time, “Credit Agreement”).

     C. It is a condition to the effectiveness of the Credit Agreement that the Debtor and the Secured Party enter into this Amendment.

     NOW, THEREFORE, in consideration of the benefits to the Debtor, the receipt and sufficiency of which are hereby acknowledged, the Debtor and the Secured Party hereby agree as follows:

     SECTION 1. AMENDMENTS.

     1.01 The definition of “Credit Agreement,” as such term is used in the Security Agreement is amended to read as follows:

     “Credit Agreement” means the Second Amended and Restated Credit Agreement dated as of December 30, 2006, between the Debtor and the Secured Party, as amended, supplemented or restated from time to time.

     1.02. Schedules I, II, III and IV to the Security Agreement shall be amended and restated in their entirety to read as Schedules I, II, III and IV, respectively, attached hereto.

     SECTION 2. REPRESENTATIONS.

     In order to induce the Secured Party to execute and deliver this Amendment, the Debtor hereby represents to the Secured Party that:

     (a) This Amendment has been duly executed and delivered by the Debtor and constitutes a legal, valid and binding obligation of the Debtor enforceable in accordance

with its terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (whether enforcement is sought by proceedings in equity or at law); and

     (b) as of the date hereof the representations and warranties set forth in the Security Agreement are and shall be and remain true and correct and the Debtor is in compliance with the terms and conditions of the Security Agreement.

     SECTION 4. MISCELLANEOUS.

          4.01. Except as specifically amended herein, the Security Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Security Agreement, the Credit Agreement, the Notes, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Security Agreement, any reference in any of such items to the Security Agreement being sufficient to refer to the Security Agreement as amended hereby.

          4.02. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but both of which shall together constitute one and the same instrument.

          4.03. This Amendment shall be governed by, and construed and interpreted in accordance with, the law of the State of New York without regard to conflict of law principles (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law).

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their respective duly authorized officers as of the date first above written.

HearUSA, INC.

By: /s/ Xxxxxxx X. Xxxxxxxxxx

Name: Xxxxxxx X. Xxxxxxxxxx

Title: President and CEO

SIEMENS HEARING INSTRUMENTS, INC.

By: /s/ Xxxxxxx X. Xxxxxxxx

Name: Xxxxxxx X. Xxxxxxxx

Title: President and CEO

Signature Page to Amendment No. 1 to
Amended and Restated Security Agreement

SCHEDULE I

CHATTEL PAPER AND INSTRUMENTS

[TO BE UPDATED]

Notes Payable
Name		Principal Balance
HearUSA, Inc.
AHS/Xxxxxxx Xxxxx		$	57,180.74
AHS/Xxxxx XxXxxxx			19,060.20
Professional Hearing Care			1,088,888.00
Professional Hearing Aid Services			182,811.00
Xxxxxxx Hearing Centers			328,125.00
Meadowbrook Hearing Aid Center			112,500.00
$5.5 million Notes			5,060,000.00
$7.5 million Notes			7,500,000.00

SCHEDULE II

COMMERCIAL TORT CLAIMS

None

SCHEDULE III

DEBTOR AND COLLATERAL DETAILS

[TO BE UPDATED]

1. Inventory & Equipment Locations:

LOCATION		PROPERTY		TOWN				ZIP
NAME /#		ADDRESS		NAME		STATE		CODE
CORPORATE XXXXXX		0000 Xxxxxxxxxx Xxxxxxx		Xxxx Xxxx Xxxxx		XX		00000
CALL CENTER		0000 Xxxxxxxxxx Xxxxxxx		Xxxx Xxxx Xxxxx		XX		00000
Corporate Warehouse		000 Xxxxxxxxxx Xxxxxxx		Xxxx Xxxx Xxxxx		XX		00000
19001		0000 Xxxxxxxxx Xxxx., Xxx. 000		Xxxxxxxxx		XX		00000
19003		000 Xxxxxxx Xxxx.		Xxxx Xxxx Xxxxx		XX		00000
19004		00000 XX 00xx Xx.		Xxxxx Xxxxx		XX		00000
19005		00000 Xxxxxxxx Xxxx #000		Xxxxxxxx Xxxxx		XX		00000
19007		0000 Xxxx Xxxxxxxxxx Xxxx		Xxxxxxx Xxxx		XX		00000
19008		000 Xxxxx Xxxxxxxx Xxxxxx		Xxxxxxx Xxxxx		XX		00000
19010		0000 X. Xxxxxxxxxx Xxxx.		Xxxxxxxxxx		XX		00000
19012		0000 Xxxxxxxx Xxxx.		Xxxx xx Xxxxxxxx		XX		00000
19015		0000 Xxxxxx Xxxx		Xxxx Xxxxx		XX		00000
19016		0000 X. Xxxxxxxxx Xxxx.		Xxxxxxxxx Xxxxx		XX		00000
19018		0000-00/00 X. Xxxxxxxx Xxxxxx		Xxxxxx Xxxxx		XX		00000
19022		00000 X.X. Xxxxxxx 00 Xxxxx, Xxxxx 000		Xxxxxxxxxx		XX		00000
19024		000 X. X.X. Xxx. #0		Xxxxxxx		XX		00000
19038		0000 XX 000xx Xxxxxx		Xxxxx		XX		00000
19051		0000-0000 Xxxxx Xxx		Xxxxx		XX		00000
19061		0000-0000 X.X. Xxxxxxx Xxx		Xxxxxx		XX		00000
19063		0000 X. Xxxxxxx Xxxxxxx		Xxxx Xx. Xxxxx		XX		00000
19065		0000 Xxxx Xxxxx Xxxx		Xxxx Xxxxx		XX		00000
19080		00000 Xxxxxx Xxxx		Xxxxxxxxxxx		XX		00000
19082		000 Xxxxxx Xxxxxxxxx Xxxxx		Xx. Xxxxxxxxxx		XX		00000
19083		30220 - 000 XX Xxxxxxx 00 X		Xxxxxxxxxx		XX		00000
19084		0000 Xxxxxxxxxxxxx Xxx.		Xxx Xxxx Xxxxxx		XX		00000
19085		0000 X. Xxxxxxx Xxxxx		Xxxxxxxx		XX		00000
19087		0000 Xxxxxxx Xxxx.		Xx. Xxxxx		XX		00000
19088		0000 Xxxxxxx Xxxxx #000		Xxxx Xxxxxxxxx		XX		00000
19091		000 Xxxxxxx Xxxxx		Xxxxxx		XX		00000
19092		0000 Xxxx Xxxxxx Xxxxxx		Xxxxx		XX		00000-0000
19093		000 Xxxx Xxxxxxxxxxxx Xxx.		Xxxxxxx		XX		00000
19094		0000 Xxxxxxx Xxxx Xxxx		Xxxxxxxxxxx		XX		00000-0000
19095		0000 Xxxxxx Xxxx Xxxx		Xxxxxxxxx		XX		00000

LOCATION		PROPERTY		TOWN				ZIP
NAME /#		XXXXXXX		XXXX		XXXXX		XXXX
00000		000 Xxxx Xxxxxxxxx Xx.		Xxxxxxxxx Xxxxxxx		XX		00000
29000		00 Xxxx Xxxxxx Xx.		Xxxxxxxxxx		XX		00000
29401		0000 Xxxxxxxx Xxxxxx		Xxxxxxxxxx		XX		00000
29402		0000 Xxxxxxxx Xxxxxx		Xxxxxxxxxx		XX		00000
29403		0000 Xxxxxxx Xxxx		Xxxxxxxxxx		XX		00000
29412		0000 Xxxxxxxx Xxxxx		Xxxxxx		XX		00000
29414		0000 Xxxx Xxxxxxxxxx Xxxxxx, Xxxxx X		Xxxxxxxxxxxx		XX		00000
29421		0000 Xxxxxxxxxx Xxxx		Xxxxx Xxxx		XX		00000
29441		000 Xxxxxxxx Xxxxx		Xxxxx		XX		00000
32301		0000 Xxxxxxxxxx Xxxxx XX		Xxxxx Xxxxxx		XX		00000
32670		0000 Xxxxxx Xxxx		Xxxxx		XX		00000
32670		00000 Xxxx Xxxxxx #X		Xxxxxx Xxxxxx		XX		00000
32673		0000 X. Xxxx Xxxx		Xxxxx Xxxxx		XX		00000-0000
32674		00000 Xxxxxxxxxx Xxxx		Xxxxxxx Xxxxx		XX		00000-0000
32675		00000 Xxxxxxxxxx Xxxx		Xxxxxxx		XX		00000
32676		0000 X Xxxxx Xxxxxx, Xxxxx X0		Xxx Xxxxx		XX		00000-0000
32677		0000 Xxxxxxxxxxxx Xxxxx		Xxxxx		XX		00000
32678		000 X. Xxxxxxxxx Xxxxxx		Xxxxxx		XX		00000
33802		0000 Xxxxxx Xxxxxx Xxxxx		Xxxxx Xxxxx		XX		00000
33811		0000 Xxxxxxx Xxxxxxxxx.		Xx. Xxxxx Xxxx		XX		00000
35911		000 Xxx Xxxxxxxxx Xxxxxx		Xx. Xxxxx		XX		00000
35913		00000 Xxxxx Xxxxxx		Xxxxx Xxxxx		XX		00000
35914		000 Xxxxxx Xxxxxx Xxxxxx		Xxxxxxxxxx		XX		00000
35915		0000 X 0XX Xxxxxx		Xx Xxxxxxx		XX		00000-0000
35916		0000 Xxxxxx Xxxx		Xxxxxxxxxx		XX		00000
35921		0000 Xxxx Xxxxxxxx		Xxxxxxxx		XX		00000
35931		000 Xxxxxxx Xxxxx Xxxxxxxx		Xx. Xxxxx		XX		00000-0000
40001		0000-0000 Xxxxxxxxxx Xxxxxx		Xxxx Xxx Xxxx		XX		7093
40002		00 X Xxxxx 00		Xxxxxxx		XX		0000
40003		000 Xxxx Xx.		Xxxxxxxxx		XX		0000
40004		0000 Xx. Xxxxx Xxxx		Xxxxxxxxxx Xxxxxxxx		XX		0000
40005		0000 Xxxxx 0		Xxxxxx		XX		0000
40006		0000 Xxxxxxxx Xxxxxx Xxxx		Xxxxxxxx		XX		0000
40007		000 Xxxxx 00		Xxxxxx Xxxx		XX		0000
00000		Xxxxxxxx Xxxx - Space 1224		Xxxxxxxx		XX		0000
40009		1500 Route 00 Xxxxx		Xxx Xxxxxx		XX		0000
40011		000 Xxxxx Xxxxxxxx		Xxxxxxxxxx		XX		0000
40012		00 Xxxxxx Xxxxx		Xxxxxxxxxxx		XX		0000
40013		000 Xxxxx 00 Xxxx & Xxxxxx Xxx		Tom's River		NJ		8753
40014		000 X. Xxxx Xxxxxx		Xxxxxxxxxx		XX		0000
40015		0 Xxxx Xxxxx		Xxxxxx		XX		0000
		0000X Xxx Xxxxxxx Xxxx
42001		000 Xxxxxx Xxxxxx		Xxxxxxxxx		XX		00000

LOCATION		PROPERTY		TOWN				ZIP
NAME /#		XXXXXXX		XXXX		XXXXX		XXXX
00000		000 Xxxxxxxxx Xxxxxx		Xxx Xxxx		XX		00000
42003		000 Xxxx Xxxxxxx Xxxx		Xxxxx		XX		00000-0000
42004		0000 Xxxxxxx'x Xxxxxxxx Xxxxxxx		Xxxxxxxx		XX		00000
42005		000 Xxxx Xxxx Xxxx		Xxxxx Xxxxxx		XX		00000
42006		000 Xxxx Xxxx Xxxx		Xxxxx Xxxxx		XX		00000-0000
42007		0000 Xxxxxx Xxx.		Xxxxxxxx		XX		00000
42008		000-00 Xxxxx Xxx Xxxxxxxxx		Xxxxxx Xxxxx		XX		00000
42009		000 Xxxxxxx Xxxxxx		Xxxxxx Xxxxxx		XX		00000
42011		0000 Xxxxxxxx, Xxxxx 000		Xxx Xxxx		XX		00000
42012		00-00 Xxxxxx Xxxxxxxxx		Xxxxxxxx		XX		00000
42013		000 Xxxxxxxx		Xxxxxxxxxx		XX		00000
42017		000 X. Xxxxxxx Xxxxxxxx		Xxxxxxx		XX		00000
42201		000 Xxxxxx Xxxxxx		Xxxxxxxxx		XX		00000
42202		0000 Xxxx Xxxxx Xxxxxx		Xxxxx		XX		00000
42203		000 Xxxx Xxxxxx		Xxxxxx		XX		00000
43651		000 Xxxxxxxx Xxxxxx		Xxxxxx		XX		0000
43652		000 Xxxxxxxxxxxxx Xxxxxx		Xxxxxxxxx		XX		0000
43654		00 Xxxxxxx Xxxxxx, Xxxxx Xxxxx		Xxxxxxxxxx		XX		00000-0000
43655		000 Xxxx Xxxxxx		Xxxxxx		XX		0000
43658		00 Xxxxxxx Xxxxxx		Xxxxxxxxxx		XX		0000
43659		000 Xxxx Xxxxxx		Xxxxxxxxx		XX		0000
43660		0 Xxxxx Xxxxx Xxxxx		Xxxxxxx		XX		0000
80601		000 Xxxxxxxx Xxx.		Xxxxxx		XX		X0X0X0
80602		000 Xxxxx Xxxx		Xxxxxx		XX		X0X0X0
80603		0000 Xxxxx X'Xxxxxxx Xxxxx		Xxxxxxx		XX		X0X0X0
80604		0000 Xxxx Xxxxxx		Xxxxxxxxxxx		XX		X0X 0X0
80605		000 Xxxxxxxx Xxxx, Xxxxx 000X		Xxxxxx		XX		X0X0X0
80611		000 Xxxxxxxx Xxxxxx		Xxxxxxxx		XX		X0X0X0
80612		000 Xxxxxxxx Xxxxxx		Xxxxxxxxxx		XX		X0X0X0
80613S		00 Xxxxxxx Xxxxxx		Xxxxxxx		XX		X0X 0X0
80621		000 Xxxxxxxx, Xxxxx 000		Xxxxxxx		XX		X0X 0X0
80622S		000 Xxxxxxx Xxxx		Xxxx Xxxx		XX		X0X 0X0
80623		000 Xxxxxxxx Xxxxxx		Xxxxxxxxxxxx		XX		X0X 0X0
80625		000 Xxxxxx Xxxxxx, Xxxxx		Xxxxx		XX		X0X 0X0
80626		00000 Xxxxxxxx Xx. Xxxx, Xxxxx 000		Xxxxxxxx		XX		X0X 0X0
80627		000 Xxxxxx Xxxxxx Xxxx, Xxxxx 000		Xxxxxxxxxx		XX		X0X 0X0
80628S		0000 Xxxxx Xx		XxXxxxx		XX		X0X 0X0
80631		000 Xxxxxx Xxxxxx Xxxx		Xxxxxxxxxxxx		XX		X0X 0X0
80632		00 Xxxxxxx Xxxxxx Xxxx		Xxxxxxx		XX		X0X 0X0
00000		Xxxxxxxxxx Xxxxxx Xxxxxxxx Xxxxxx		Xxxxxxxxxx		XX		X0X 0X0
80634		0000 Xxxx Xxxxxx, Xxxxx 000		Xxxxxx		XX		X0X 0X0

2.		Office of Record for Accounts and Other Collateral: 0000 Xxxxxxxxxx Xxxxxxx, Xxxx Xxxx Xxxxx, Xxxxxxx 00000
3.		Debtor Organization:

	a.		Legal Name: HearUSA, Inc.
	b.		State of Incorporation: Delaware
	c.		Principal Place of Business: Southeast Florida, West Coast of Florida, New York City metropolitan area, New Jersey and Southern California
	d.		Chief Executive Office: 0000 Xxxxxxxxxx Xxxxxxx, Xxxx Xxxx Xxxxx, Xxxxxxx 00000

4.		Debtor’s Trade Names: “HEARx LTD.”, “Helix Hearing Care of America Corp.”, and “National Ear Care Plan.”
5.		Debtor’s TAX ID Number: 00-0000000

SCHEDULE IV

PATENTS, COPYRIGHTS AND TRADEMARKS

[TO BE UPDATED]

1. Registered Trademarks:

	a.		“HEARx” design plus words, letters and/or numbers, registered January 5, 1988, registration number 1471748.
	b.		“Your Prescription for Better Hearing” typed drawing, registered September 6, 1988, registration number 15032594.

2. Trademarks in Registration:

	a.		“InTouch” design plus words, letters and/or numbers, published in Official Gazette April 17, 2001, serial number 76/107038.
	b.		“International Hearing Services” words, letters or numbers in typed form, filed March 13, 2001, serial number 76/224010.
	c.		“EAR & WAVE” design, registered September 20, 2000, registration number TMA533,047
	d.		“EAR & WAVE” design, registered June 6, 2000, registration number 2,354,656.
	e.		“HEARUSA” and design, registered March 28, 2000, registration number 2,336,648.
	f.		“Helix”, registered November 7, 2000, registration number TMA536,819.
	g.		“Helix Hearing Care Centre”, registered September 10, 2001, registration number TMA550,544.
	h.		“Helix Hearing Care Centre” and design, registered September 28, 2001, registration number TMA551,743.
	i.		“Prestige”, registered June 22, 2004, registration number 78/310,914.
	j.		“It’s Clear We Care”, registered February 1, 2005, registration number 78/174,387.

3. Common Law Trademarks, Copyrights and other Intellectual Property:

	a.		“HELP Class” Name and design
	b.		Content of HELP Class Handbook & Classroom Materials
	c.		Programming and Content of “Center Management System” or “CMS”
	d.		Programming and Content of “Customer Contact Plan”
	e.		Programming and Content of Telemarketing Scripts, Customer Service Screens, and Call Management Flowcharts
	f.		All creative content of advertisements, direct mail, brochures and public communications
	g.		Content of JCAHO-compliant operating policies and procedures
	h.		Content of HEARx Practice Guidelines for Clinical Services
	i.		Center Operating Manual & Management Policies
	j.		Sales & Customer Service training programs
	k.		New Employee Training Manuals

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