| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-------------------------------------------------------------------------------------------|

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| Delaware                        | 22-2748248          |
|---------------------------------|---------------------|
| (State or Other Jurisdiction of | (I.R.S. Employer    |
| Incorporation or Organization)  | Identification No.) |

| 1250 Northpoint Parkway, West Palm Beach, Florida | 33407                 |
|---------------------------------------------------|-----------------------|
| (Address of Principal Executive Offices)          | (Zip  Code) |

| Title of each class                     |   | Name of each exchange on which registered |
|-----------------------------------------|--------|-------------------------------------------|
|                                    |   |                                      |
| Common Stock, par value $0.10 per share |   | NYSE Amex                                 |

| Large accelerated filer   ̈                 |   | Accelerated filer    ̈         |
|-----------------------------------------------------------|--------|---------------------------------------------------|
|                                                      |   |                                              |
| Non-accelerated filer      ̈ |   | Smaller reporting company   þ |

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| Name and Age       |   | DirectorSince |   | Position withthe Company               |
|------------------------------|--------|---------------|--------|--------------------------------------------------|
| Thomas W. Archibald (72)     |   | 1993          |   | Director                                         |
| Bruce N. Bagni (66)          |   | 2005          |   | Director                                         |
| Paul A. Brown (73)           |   | 1986          |   | Director                                         |
| Joseph L. Gitterman III (75) |   | 1997          |   | Director                                         |
| Stephen J. Hansbrough (64)   |   | 1997          |   | Chief Executive Officer andChairman of the Board |
| Michel Labadie (57)          |   | 2002          |   | Director                                         |
| David J. McLachlan (72)      |   | 1986          |   | Lead Independent Director                        |
| Ozarslan A. Tangun (39)      |   | 2009          |   | Director                                         |
| Stephen W. Webster (50)      |   | 2008          |   | Director                                         |

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| Name andPrincipal Positions |   | Year |   | Salary($) |    |   | Bonus($) |   |    | StockAwards($) (4) |   |   | OptionAwards($) (5) |   |   | NonequityIncentivePlanCompen-sation($) |    |   | All OtherCompen-sation($) |   |    | Total($) |   |
|---------------------------------------|--------|------|--------|-----------|---------|--------|----------|--------|---------|-------------------------|--------|--------|--------------------------|--------|--------|----------------------------------------|---------|--------|--------------------------------|--------|---------|----------|--------|
| Stephen J. Hansbrough                 |   | 2010 |   |      | 399,000 |   |     |   | — |                    |   |   | —                  |   |   |                                   | 205,362 |   |                           |   | — |     |   |   | — |   |   |   | 604,362 |   |
| CEO and Chairman of the               |   | 2009 |   |      | 406,000 |   |     |   | — |                    |   |   | 94,504                   |   |   |                                   | 107,448 |   |                           |   | 99,408  |     |   |   | — |   |   |   | 707,360 |   |
| Board (1)                             |   | 2008 |   |      | 415,000 |   |     |   | — |                    |   |   | 126,490                  |   |   |                                   | — |   |                           |   | — |     |   |   | — |   |   |   | 541,490 |   |
| Gino Chouinard (2)                    |   | 2010 |   |      | 333,000 |   |     |   | — |                    |   |   | —                  |   |   |                                   | 114,090 |   |                           |   | — |     |   |   | — |   |   |   | 447,090 |   |
| President and                         |   | 2009 |   |      | 333,000 |   |     |   | — |                    |   |   | 52,502                   |   |   |                                   | 62,678  |   |                           |   | 82,840  |     |   |   | — |   |   |   | 531,020 |   |
| Chief Operating Officer               |   | 2008 |   |      | 306,000 |   |     |   | 10,000  |                    |   |   | 63,245                   |   |   |                                   | — |   |                           |   | — |     |   |   | — |   |   |   | 379,245 |   |
| Frank Puñal (3)                  |   | 2010 |   |      | 238,000 |   |     |   | — |                    |   |   | —                  |   |   |                                   | 68,454  |   |                           |   | — |     |   |   | — |   |   |   | 306,454 |   |
| Senior Vice President                 |   | 2009 |   |      | 235,000 |   |     |   | — |                    |   |   | 31,501                   |   |   |                                   | 53,724  |   |                           |   | 49,310  |     |   |   | — |   |   |   | 369,535 |   |
| and Chief Financial Officer           |   | 2008 |   |      | 127,000 |   |     |   | — |                    |   |   | —                  |   |   |                                   | 175,000 |   |                           |   | — |     |   |   | — |   |   |   | 302,000 |   |

|   | (1) | The $99,408 non-equity incentive plan compensation reflected in 2009 was earned in 2009 as a cash incentive award for achievement by the Company of a 2009 adjusted net income and individual performance goals and paid in 2010. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Mr. Chouinard was promoted to the position of president and chief operating officer on February 23, 2009. His compensation for 2008 reflects that earned by him in his role as president and chief financial officer. The $82,840 non-equity incentive plan compensation reflected in 2009 was earned in 2009 as a cash incentive award for achievement by the Company of 2009 adjusted net income and individual performance goals and paid in 2010.  The $10,000 bonus reflected in 2008 was paid in 2008 as a discretionary bonus for 2007 performance. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Mr. Puñal joined the Company on April 28, 2008, as the Company’s chief accounting officer. He was promoted to the position of chief financial officer on February 23, 2009. His compensation for 2008 reflects that earned by him in his role as senior vice president and chief accounting officer. The $49,310 non-equity incentive plan compensation reflected in 2009 was earned in 2009 as a cash incentive award for achievement by the Company of 2009 adjusted net income and individual performance goals and paid in 2010. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Does not reflect amounts actually received as compensation but represents the aggregate grant date fair value computed in accordance with FASB ASC Topic 718 based on the probable outcome of the performance conditions measures as of the grant date.  The grant date fair value of the 2010 performance based awards assuming achievement of the maximum performance criteria would be $127,575, $74,925 and $57,713 for Mr. Hansbrough, Mr. Chouinard and Mr. Puñal, respectively.  The grant date fair value of the 2009 performance based awards assuming achievement of the maximum performance criteria would be $121,500, $67,500 and $40,500 for Mr. Hansbrough, Mr. Chouinard and Mr. Puñal, respectively.  The grant date fair value of the 2008 performance based awards assuming achievement of the maximum performance criteria could be $292,600 and $191,100 for Mr. Hansbrough and Mr. Chouinard, respectively.   For a discussion of the assumptions used in calculating the expense, see Note 11 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2010.  |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (5) | Represents the aggregate grant date fair value computed in accordance with FASB ASC Topic 718.  For discussion of the assumptions used in calculating the expense, see Note 11 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2010. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                                  | Lump SumCash Payment($) | Value ofAcceleratedVesting on Equity Awards($) | Continuation ofHealthcareBenefits($) | Total ($) |
|---------------------------------------|-------------------------|------------------------------------------------|--------------------------------------|-----------|
| Stephen J. Hansbrough (1)        |                    |                                           |                                 |      |
| Termination without Change in Control | 1,077,300               | 144,097                                        | 46,219                               | 1,268,416 |
|                                  |                    |                                           |                                 |      |
| Termination with Change in Control    | 1,476,300               | 144,097                                        | 69,328                               | 1,690,525 |
| Gino Chouinard (2)               |                    |                                           |                                 |      |
| Termination without Change in Control | 732,600                 | 80,732                                         | 27,147                               | 840,479   |
|                                  |                    |                                           |                                 |      |
| Termination with Change in Control    | 899,100                 | 80,732                                         | 36,196                               | 1,016,028 |
| Frank Puñal (3)             |                    |                                           |                                 |      |
| Termination without Change in Control | 357,000                 | 49,702                                         | 18,044                               | 424,746   |
|                                  |                    |                                           |                                 |      |
| Termination with Change in Control    | 476,000                 | 49,702                                         | 27,066                               | 552,768   |

| (1)       | The estimated aggregate total of termination benefits during the 24-month severance period if Mr. Hansbrough had been terminated without “cause” on December 25, 2010 in the absence of a change in control would have been approximately $1,268,416, consisting of the following: (a) two times Mr. Hansbrough’s annual base salary on December 25, 2010 (his base salary on December 25, 2010 was $399,000); (b) maximum cash bonus assuming all performance targets would have been met (his maximum cash bonus on December 25, 2010 was $279,300); (c) valuation of the acceleration of Mr. Hansbrough’s outstanding and unvested options and RSU’s calculated on the closing price of the Company’s common stock on December 25, 2010 was $144,897, (d) 24 months of health insurance coverage, at a total cost of approximately $44,070; and (e) 24 months of life insurance coverage, at a cost of approximately $2,149. The estimated aggregate total of benefits upon a “change of control” and subsequent termination if Mr. Hansbrough had been terminated on December 25, 2010 would have been approximately $1,690,525, consisting of the following: a) three times Mr. Hansbrough’s annual base salary on December 25, 2010 (his base salary on December 25, 2010 was $399,000); (b) maximum cash bonus assuming all performance targets would have been met (his maximum cash bonus on December 25, 2010 was $279,300); (c) valuation of the acceleration of Mr. Hansbrough’s outstanding and unvested options and RSU’s calculated on the closing price of the Company’s common stock on December 25, 2010 was $144,897, (d) 36 months of health insurance coverage, at a total cost of approximately $66,105; and (e) 36 months of life insurance coverage, at a cost of approximately $3,223. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (2)       | The estimated aggregate total of termination benefits during the 18-month severance period if Mr. Chouinard had been terminated without “cause” on December 25, 2010 in the absence of a change in control would have been approximately $840,479, consisting of the following: (a) 1.5 times Mr. Chouinard’s annual base salary on December 25, 2010 (his base salary on December 25, 2010 was $333,000); (b) maximum cash bonus assuming all performance targets would have been met (his maximum cash bonus on December 25, 2010 was $233,100); (c) valuation of the acceleration of Mr. Chouinard’s outstanding and unvested options and RSU’s calculated on the closing price of the Company’s common stock on December 25, 2010 was $80,732, (d) 18 months of health insurance coverage, at a total cost of approximately $25,536; and (e) 18 months of life insurance coverage, at a cost of approximately $1,611. The estimated aggregate total of benefits upon a “change of control” and subsequent termination if Mr. Chouinard had been terminated on December 25, 2010 would have been approximately $1,016,028, consisting of the following: a) two times Mr. Chouinard’s annual base salary on December 25, 2010 (his base salary on December 25, 2010 was $333,000); (b) maximum cash bonus assuming all performance targets would have been met (his maximum cash bonus on December 25, 2010 was $233,100); (c) valuation of the acceleration of Mr. Chouinard’s outstanding and unvested options and RSU’s calculated on the closing price of the Company’s common stock on December 25, 2010 was $80,732, (d) 24 months of health insurance coverage, at a total cost of approximately $34,048; and (e) 24 months of life insurance coverage, at a cost of approximately $2,148.        |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  (3) | The estimated aggregate total of termination benefits during the 12-month severance period if Mr. Puñal had been terminated without “cause” on December 25, 2010 in the absence of a change in control would have been approximately $424,746, consisting of the following: (a) one times Mr. Puñal’s annual base salary on December 25, 2010 (his base salary on December 25, 2010 was $238,000); (b) maximum cash bonus assuming all performance targets would have been met (his maximum cash bonus on December 25, 2010 was $119,000); (c) valuation of the acceleration of Mr. Puñal’s outstanding and unvested options and RSU’s calculated on the closing price of the Company’s common stock on December 25, 2010 was $49,702, (d) 12 months of health insurance coverage, at a total cost of approximately $17,024; and (e) 12 months of life insurance coverage, at a cost of approximately $1,020. The estimated aggregate total of benefits upon a “change of control” and subsequent termination if Mr. Puñal had been terminated on December 25, 2010 would have been approximately $552,768, consisting of the following: a) 1.5 times Mr. Puñal’s annual base salary on December 25, 2010 (his base salary on December 25, 2010 was $238,000); (b) maximum cash bonus assuming all performance targets would have been met (his maximum cash bonus on December 25, 2010 was $119,000); (c) valuation of the acceleration of Mr. Puñal’s outstanding and unvested options and RSU’s calculated on the closing price of the Company’s common stock on December 25, 2010 was $49,702, (d) 18 months of health insurance coverage, at a total cost of approximately $25,536; and (e) 18months of life insurance coverage, at a cost of approximately $1,530.     |

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|                      |   |            |   | Estimated FuturePayouts Under Non-Equity Incentive PlanAwards |    |   | Estimated FuturePayouts Under EquityIncentive Plan Awards |   |    | All otherStockAwards:Number of |   |   | All otherOptionAwards:Number ofSecurities |   |   | Exercise orBase Price           |    |   | Grant DateFair Value |   |
|---------------------------|--------|-----------------|--------|----------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------|--------|---------|------------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------------------------------|--------|
| Name                      |   | Grant Date |   | Target($)                                                                              |    |   | Maximum ($)                                                                   |   |    | Target(#)                                |   |   | Maximum(#)                                          |   |   | Shares ofStock or Units(#) |    |   | UnderlyingOptions(#)           |   |   | of OptionAwards($/Sh) |   |   | of Stockand OptionAwards |   |
| Stephen J. Hansbrough (1) |   | 2/9/2010        |   |                                                                                   | — |   |                                                                               |   | — |                                     |   |   | —                                             |   |   |                                      | — |   |                           |   | — |   |   |   | 180,000 |   |   |   | 1.35 |   |   |   | 205,362 |   |
| Gino Chouinard (1)        |   | 2/9/2010        |   |                                                                                   | — |   |                                                                               |   | — |                                     |   |   | —                                             |   |   |                                      | — |   |                           |   | — |   |   |   | 100,000 |   |   |   | 1.35 |   |   |   | 114,090 |   |
| Frank Puñal (1)      |   | 2/9/2010        |   |                                                                                   | — |   |                                                                               |   | — |                                     |   |   | —                                             |   |   |                                      | — |   |                           |   | — |   |   |   | 60,000 |   |   |   | 1.35 |   |   |   | 68,454 |   |

|   | (1) | The option grants reflected on the table vest ratably over four years commencing in 2011. |
|--------|-----|-------------------------------------------------------------------------------------------|

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|                      |   | Options Awards                                                      |    | Stock Awards |                                                                 |
|---------------------------|--------|--------------------------------------------------------------------------|---------|-------------------|----------------------------------------------------------------------|
| Name                      |   | Number ofSecuritiesUnderlyingUnexercisedOptions(#) Exercisable |    |              | Number ofSecuritiesUnderlyingUnexercisedOptions(#)Unexercisable |   |   | OptionExercisePrice($) |   | OptionExpirationDate |   | Number ofShares orUnits ofStock ThatHave NotVested (#) |   |   | MarketValue ofShares orUnits ofStock ThatHave NotVested ($) |   |   | EquityIncentivePlan Awards:Number ofUnearnedShares, Unitsor otherrights ThatHave NotVested (#) |   |   | EquityIncentivePlan Awards:Market orPayout Valueof UnearnedShares, Unitsor otherRights ThatHave NotVested($) |   |
| Stephen J. Hansbrough (1) |   |                                                                     | 250,000 |              |                                                                 |   | — |   |   |   | 0.35 |   | 3/31/2013 |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | 400,000 |              |                                                                 |   | — |   |   |   | 1.33 |   | 8/25/2014 |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | 420,000 |              |                                                                 |   | — |   |   |   | 1.47 |   | 9/24/2017 |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | 60,000  |              |                                                                 |   | 180,000 |   |   |   | 0.53 |   | 2/23/2019 |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     |    |              |                                                                 |   | 180,000 |   |   |   | 1.35 |   | 2/9/2020 |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     |    |              |                                                                 |   |   |   |   |   |   |   |   |   |   | 96,204 |   |   |   | 83,697 |   |   |   | — |   |   |   | — |   |
| Gino Chouinard (2)        |   |                                                                     |    |              |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | 200,000 |              |                                                                 |   | — |   |   |   | 0.35 |   | 3/31/2013 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | 350,000 |              |                                                                 |   | — |   |   |   | 1.33 |   | 8/25/2014 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | 50,000  |              |                                                                 |   | — |   |   |   | 1.79 |   | 5/9/2015 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | 210,000 |              |                                                                 |   | — |   |   |   | 1.47 |   | 9/24/2017 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | 35,000  |              |                                                                 |   | 105,000 |   |   |   | 0.53 |   | 2/23/2019 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | — |              |                                                                 |   | 100,000 |   |   |   | 1.35 |   | 2/9/2020 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     |    |              |                                                                 |   |   |   |   |   |   |   |   |   |   | 51,761 |   |   |   | 45,032 |   |   |   | — |   |   |   | — |   |
| Frank Puñal (3)      |   |                                                                     | 50,000  |              |                                                                 |   | 50,000 |   |   |   | 1.39 |   | 5/19/2018 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | 20,000  |              |                                                                 |   | 20,000 |   |   |   | 1.70 |   | 7/29/2018 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     | 30,000  |              |                                                                 |   | 90,000 |   |   |   | 0.53 |   | 2/23/2019 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     |    |              |                                                                 |   | 60,000 |   |   |   | 1.35 |   | 2/9/2020 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                                     |    |              |                                                                 |   |   |   |   |   |   |   |   |   |   | 21,956 |   |   |   | 19,102 |   |   |   | — |   |   |   | — |   |

|   | (1) | Mr. Hansbrough’s unexercisable options become exercisable as follows: 60,000 on each date of February 23, 2011, 2012 and 2013, 45,000 on each date of February 9, 2011, 2012, 2013 and 2014.  Mr. Hansbrough’s unvested stock units become vested as follows: 30,334 on February 25, 2011, and 32,935 on each date of March 31, 2011 and 2012. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Mr. Chouinard’s unexercisable options become exercisable as follows: 35,000 on each date of February 23, 2011, 2012 and 2013, 25,000 on each date of February 9, 2011, 2012, 2013 and 2014.  Mr. Chouinard’s unvested stock units become vested as follows: 15,167 on February 25, 2011, and 18,297 on each date of March 31 2011 and 2012. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Mr. Puñal’s unexercisable options become exercisable as follows: 25,000 on each date of May 9, 2011, and 2012, 10,000 on each date of July 29, 2011 and 2012, and 30,000 on each date of February 23, 2011, 2012 and 2013, 15,000 on each date of February 9, 2011, 2012, 2013 and 2014.  Mr. Puñal’s unvested stock units become vested as follows: 10,978 on March 31, 2011 and 2012. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name (1)           |   | Fees EarnedOr Paid inCash($) |   |   | Option Awards($) (2) |   |   | All OtherCompensation($) |   |   | Total($) |   |
|-------------------------|--------|---------------------------------------------|--------|--------|--------------------------------|--------|--------|-------------------------------|--------|--------|----------|--------|
| Thomas W. Archibald     |   |                                        | 43,725 |   |                           |   | 21,105 |                          |   |   | —  |   |   |   | 64,830 |   |
| Bruce Bagni             |   |                                        | 30,250 |   |                           |   | 16,884 |                          |   |   | —  |   |   |   | 47,134 |   |
| Joseph L. Gitterman III |   |                                        | 26,600 |   |                           |   | 16,884 |                          |   |   | —  |   |   |   | 43,484 |   |
| Paul A. Brown, M.D.     |   |                                        | 30,000 |   |                           |   | 16,884 |                          |   |   | —  |   |   |   | 46,884 |   |
| Michel Labadie          |   |                                        | 22,700 |   |                           |   | 16,884 |                          |   |   | —  |   |   |   | 39,584 |   |
| David J. McLachlan      |   |                                        | 27,250 |   |                           |   | 25,326 |                          |   |   | —  |   |   |   | 52,576 |   |
| Ozarslan A. Tangun      |   |                                        | 27,250 |   |                           |   | 16,884 |                          |   |   | —  |   |   |   | 44,134 |   |
| Stephen W. Webster      |   |                                        | 31,900 |   |                           |   | 21,105 |                          |   |   | —  |   |   |   | 53,005 |   |

|   | (1) | Mr. Hansbrough was not compensated separately for his service on the Board of Directors. See Summary Compensation Table, above, for information relating to Mr. Hansbrough’s compensation. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | On June 10, 2010, each non-employee director was granted a 10 year option to purchase up to 20,000 shares of Common Stock pursuant to the Company’s 2007 Incentive Compensation Plan. The exercise price of those options was the market price on date of grant (closing price of the Common Stock on the date of the grant of $1.00) and the options vest ratably over three years commencing on the first anniversary of the grant. On June 10, 2010, Mr. McLachlan, as Lead Director, was granted a 10-year option to purchase up to 10,000 shares of Common Stock pursuant to the Company’s 2007 Incentive Compensation Plan. The exercise price of those options was the market price on date of grant (closing price of the Common Stock on the date of the grant of $1.00) and the options vest ratably over three years commencing on the first anniversary of the grant. On June 10, 2010, Mr. Archibald, as Compensation Committee Chairman, was granted a 10-year option to purchase up to 5,000 shares of Common Stock pursuant to the Company’s 2007 Incentive Compensation Plan. The exercise price of those options was the market price on date of grant (closing price of the Common Stock on the date of the grant of $1.00) and the options vest ratably over three years commencing on the first anniversary of the grant. On June 10, 2010, Mr. Webster, as Audit Committee Chairman, was granted a 10-year option to purchase up to 5,000 shares of Common Stock pursuant to the Company’s 2007 Incentive Compensation Plan. The exercise price of those options was the market price on date of grant (closing price of the Common Stock on the date of the grant of $1.00) and the options vest ratably over three years commencing on the first anniversary of the grant.  As of December 25, 2010, options granted to the non-employee directors and still outstanding were as follows: Thomas W. Archibald, 115,000; Bruce Bagni, 80,000; Paul A. Brown, MD., 60,000; Joseph L. Gitterman, 105,000; Michel Labadie, 105,000; David J. McLachlan, 135,000; Ozarslan A. Tangun, 45,000; and Stephen W. Webster, 75,000. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
|----------|------------------------------------------------------------------------------------------------|

| Title of Class |   | Name and Address ofBeneficial Owner                            |   | Amount and Nature OfBeneficial Ownership |      |   | Percent of Class[CONFIRMCALCULATIONS] |   |
|--------------------------|--------|------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|-----------|--------|-------------------------------------------------|--------|
|                     |   |                                                                               |   |                                                         |      |   |                                            |   |
| Common Stock             |   | Siemens HearingInstruments, Inc.10 Constitution Ave Piscataway,NJ  08855 |   |                                                         | 6,400,000 | (1)    |                                            |   | 14.2 | % |
|                     |   |                                                                               |   |                                                         |      |   |                                            |   |   |   |
| Common Stock             |   | Jack SilverSIAR Capital LLC660 Madison AvenueNew York, NY  20021         |   |                                                         | 4,449,000 | (2)    |                                            |   | 9.9 | % |
|                     |   |                                                                               |   |                                                         |      |   |                                            |   |   |   |
| Common Stock             |   | Arcadia Capital Advisors, LLC175 Great Neck Road, Suite 406Great Neck, NY 11021    |   |                                                         | 4,337,902 | (3)    |                                            |   | 9.7 | % |
|                     |   |                                                                               |   |                                                         |      |   |                                            |   |   |   |
| Common Stock             |   | Paul A. Brown, M.D.1250 Northpoint ParkwayWest Palm Beach, FL  33407     |   |                                                         | 2,019,400 | (4)    |                                            |   | 4.5 | % |
|                     |   |                                                                               |   |                                                         |      |   |                                            |   |   |   |
| Common Stock             |   | Michel Labadie90, Beaubien Street WestMontreal, Quebec Canada, H2S1 V6             |   |                                                         | 2,297,802 | (5)    |                                            |   | 5.1 | % |

|   | (1) | As reported on Schedule 13D/A filed on March 17, 2011, Siemens Hearing Instruments, Inc. owns 6,400,000 shares. It also reports the beneficial ownership of these shares by its parent, Siemens Aktiengesellschaft. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | As reported on Schedule 13G filed on February 9, 2011, this includes 3,649,000 shares of Common Stock held by Sherleigh Associates Inc. Profit Sharing Plan, a trust of which Jack Silver is a trustee, 800,000 shares of Common Stock held by Jack Silver. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | As reported on Schedule 13D/A filed on March 18, 2011, Arcadia Capital Advisors, LLC owns 4,337,902 shares. The Schedule also reports beneficial ownership of these shares by Arcadia Opportunity Master Fund, Ltd. and M.D. Sass FinStrat Arcadia Capital Holdings, LLC. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |  (4) | Includes 40,000 shares of Common Stock issuable upon exercise of options which are currently exercisable (or exercisable within 60 days). |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Includes 1,485,540 shares of Common Stock held by Les Partenaires de Montreal, s.e.c. Michel Labadie is a director of Les Partenaires de Montreal Inc., general partner for Les Partenaires de Montreal, s.e.c. Also includes 733,928 shares held by Gestion Fremican Inc. Michel Labadie is a shareholder and director of Gestion Fremican, Inc. Also includes 78,334 shares of Common Stock issuable to Mr. Labadie upon the exercise of options, which are currently exercisable. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                                                         |   | Amount and Nature ofBeneficial Ownership |       |   | Percent of Class (*) |   |
|--------------------------------------------------------------|--------|--------------------------------------------------------------|------------|--------|-------------------------------------|--------|
| Thomas W. Archibald                                          |   |                                                         | 297,668    | (1)    |                                |   | * |   |
| Bruce Bagni                                                  |   |                                                         | 46,667     | (2)    |                                |   | * |   |
| Paul A. Brown, M.D.                                          |   |                                                         | 2,019,400  | (3)    |                                |   | 4.5 | % |
| Gino Chouinard                                               |   |                                                         | 958,939    | (4)    |                                |   | 2.0 | % |
| Joseph L. Gitterman III                                      |   |                                                         | 371,667    | (5)    |                                |   | * |   |
| Stephen J. Hansbrough                                        |   |                                                         | 1,441,982  | (6)    |                                |   | 3.1 | % |
| Michel Labadie                                               |   |                                                         | 2,297,802  | (7)    |                                |   | 5.1 | % |
| David J. McLachlan                                           |   |                                                         | 285,646    | (8)    |                                |   | * |   |
| Frank Puñal                                             |   |                                                         | 163,043    | (9)    |                                |   | * |   |
| Ozarslan A. Tangun                                           |   |                                                         | 4,004,870  | (10)   |                                |   | 8.9 | % |
| Stephen W. Webster                                           |   |                                                         | 33,335     | (11)   |                                |   | * |   |
| All directors and executive officers as a group (11 persons) |   |                                                         | 11,921,019 | (12)   |                                |   | 25.0 | % |

|   | * | Less than one percent of class calculated as a percentage of issued and outstanding Common Stock as of March 31, 2011. |
|--------|---|------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Includes 81,668 shares of Common Stock issuable upon the exercise of non-qualified options, all of which are currently exercisable. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes 46,667 shares of Common Stock issuable upon the exercise of non-qualified options, all of which are currently exercisable. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Includes 40,000 shares of Common Stock issuable upon exercise of options which are currently exercisable (or exercisable within 60 days). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Includes 905,000 employee stock options and 18,297 restricted stock units which are currently exercisable (or exercisable within 60 days). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (5) | Includes 71,667 shares of Common Stock issuable upon the exercise of non-qualified options, all of which are currently exercisable. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Includes 1,235,000 employee stock options and 32,935 restricted stock units which are currently exercisable (or exercisable within 60 days). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Includes 1,485,540 shares of Common Stock held by Les Partenaires de Montreal, s.e.c. Michel Labadie is a director of Les Partenaires de Montreal Inc., general partner for Les Partenaires de Montreal, s.e.c. Also includes 733,928 shares held by Gestion Fremican Inc. Michel Labadie is a shareholder and director of Gestion Fremican, Inc. Also includes 78,334 shares of Common Stock issuable to Mr. Labadie upon the exercise of options which are currently exercisable. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | Includes 91,667 shares of Common Stock issuable upon the exercise of non-qualified options, all of which are currently exercisable. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | Includes 145,000 employee stock options and 10,978 restricted stock units which are currently exercisable (or exercisable within 60 days). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | As reported on Schedule 13D/A filed on May 19, 2009 by Patara Capital, LP, Patara Partners, LP, Patara Capital Management, LP (collectively the Patara Reporting Persons), William M. Sams, Marlin Sams Fund, L.P, Marlin Sams GenPar, LLC, Gladwyne Marlin GenPar, LLC, Suzanne Present, Michael Solomon and Candice McCurdy and Chad McCurdy (collectively the Sams Reporting Persons).  Pursuant to this Schedule 13D/A, the Patara Reporting Persons beneficially own 1,896,869 shares and the Sams Reporting Persons beneficially own 2,093,000.  Ozarslan A. Tangun is the founder and managing member of Patara Capital Management, LP and may be deemed to beneficially own the shares reported on this Schedule 13D/A.  Also includes 15,001 shares of Common Stock issuable to Mr. Tangun upon the exercise of options which are currently exercisable. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Includes 33,335 employee stock options which are currently exercisable (or exercisable within 60 days). |
|--------|------|--------------------------------------------------------------------------------------------------------------|

|   | (12) | Includes 2,805,549 shares of Common Stock issuable upon the exercise of options, restricted stock units and warrants, which are currently exercisable (or exercisable within 60 days). |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 13. | Certain Relationships and Related Transactions and Director Independence |
|----------|--------------------------------------------------------------------------|

| Item 14. | Principal Accountant Fees and Services |
|----------|----------------------------------------|

|               |   | 2010   |    |   | 2009   |   |
|--------------------|--------|--------|---------|--------|--------|--------|
| Audit fees         |   | $      | 337,000 |   |   | $      | 315,000 |   |
| Audit related fees |   |   | 10,000  |   |   |   | 93,900 |   |
| Tax fees           |   |   | 154,600 |   |   |   | 158,000 |   |
| All other fees     |   |   | — |   |   |   | — |   |
| Total              |   | $      | 501,600 |   |   | $      | 566,900 |   |

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|                 |   | HearUSA, Inc.                        |
|----------------------|--------|--------------------------------------|
|                 |   | (Registrant)                         |
|                 |   |                                 |
|                 |   |                                 |
| Date: April 20, 2011 |   | /s/ Stephen J. Hansbrough            |
|                 |   | Stephen J. Hansbrough                |
|                 |   | Chairman and Chief Executive Officer |
|                 |   | HearUSA, Inc.                        |
|                 |   |                                 |
|                 |   |                                 |
|                 |   | /s/ Francisco Puñal             |
|                 |   | Francisco Puñal                 |
|                 |   | Senior Vice President and            |
|                 |   | Chief Financial Officer              |
|                 |   | HearUSA, Inc.                        |

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