##### 



Exhibit 10.1
 HearUSA, INC.
CONVERTIBLE SUBORDINATED NOTES
CONVERSION AGREEMENT
  Recitals
     Warrant Exercise Price




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##### 



Elimination of Warrant Cashless Exercise Feature
 Closing th
 Pre-payment of Note. Schedule 1
 Conversion of Notes. Schedule 2
 Exercise of Options. Schedule 3
  - 2 -




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Conditions to Closing
 AMEX Listing Application.
 Prospectus Supplement.
 Satisfactory Deliveries.
 Purchaser Investment Representations.
 Representations of the Purchasers
 Purchase for Own Account.
 Investment Experience
 Accredited Investor
 Disclosure of Information.
 - 3 -




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Miscellaneous
 Governing Law
 Successors and Assigns
 Titles and Subtitles
 Expenses
 Counterparts
 Severability
 Entire Agreement
 Further Assurances
 - 4 -




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Purchasers Not a Group.
  - 5 -




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IN WITNESS WHEREOF,
 The Company:
HEARUSA, INC.By:Name:Title: The Purchasers:Alexandra Global Master Fund 
By:
    
    Atlas Capital Master Fund, L.P.
By:Atlas Capital (Q.P.), L.P.
By:
    
    Kennebec Resources, Inc.
By:Micro Capital Fund Ltd.
By:
    
    Micro Capital Fund L.P.
By:Selz Family 1997 Trust
By:
    
    Selz Capital LLC
By:Sherleigh and Associates, Inc. Profit Sharing Plan
    
    Siar Capital
By:By:
 - 6 -




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Schedule 1
 Original
    
    
    Balance On
    
    
    Payment On
    
    
    Payment to
    
    
    BalanceNote
    
    
    Closing Date
    
    
    Closing Date
    
    
    FlylineAlexandra Global Master Fund
    
    $
    1,000,000.00
    
    
    $
    833,333.33
    
    
    $
    58,473.47
    
    
    
    
    
    
    $
    774,859.87$
    Atlas Capital Master Fund, L.P.
    
    $
    1,500,000.00
    
    
    $
    1,250,000.00
    
    
    $
    87,710.20
    
    
    
    
    
    
    $
    1,162,289.80$
    Atlas Capital (Q.P.), L.P.
    
    $
    500,000.00
    
    
    $
    416,666.67
    
    
    $
    29,236.73
    
    
    
    
    
    
    $
    387,429.93$
    Flyline Holdings, Ltd.
    
    $
    500,000.00
    
    
    $
    416,666.67
    
    
    $
    
    
    
    $
    375,000
    
    
    $
    41,666.67$
    Kennebec Resources Inc.
    
    $
    500,000.00
    
    
    $
    416,666.67
    
    
    $
    29,236.73
    
    
    
    
    
    
    $
    387,429.93$
    Micro Capital Fund Ltd
    
    $
    150,000.00
    
    
    $
    125,000.00
    
    
    $
    8,771.02
    
    
    
    
    
    
    $
    116,228.98$
    Micro Capital Fund L.P.
    
    $
    350,000.00
    
    
    $
    291,666.67
    
    
    $
    20,465.71
    
    
    
    
    
    
    $
    271,200.95$
    Selz Family 1997 Trust, Selz Capital LLC
    
    $
    1,000,000.00
    
    
    $
    833,333.33
    
    
    $
    58,473.47
    
    
    
    
    
    
    $
    774,859.87$
    Sherleigh and Associates, Inc., Profit Sharing Plan
    
    $
    1,000,000.00
    
    
    $
    833,333.33
    
    
    $
    58,473.47
    
    
    
    
    
    
    $
    774,859.87$
    Siar Capital / Jack Silver
    
    $
    1,000,000.00
    
    
    $
    833,333.33
    
    
    $
    58,473.47
    
    
    
    
    
    
    $
    774,859.87Total
    
    $
    7,500,000.00
    
    
    $
    6,250,000.00
    
    
    $
    409,314.27
    
    
    $
    375,000.00
    
    
    $
    5,465,685.73




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##### 



Schedule 2
 Balance To
    
    
    Number of
    
    
    Number ofBe Converted
    
    
    Shares to Issue
    
    
    Shares Remaining(conversion @ 1.75)
    
    
    (not converted @ 0.70)Alexandra Global Master Fund
    
    $
    774,859.87
    
    
    
    442,777
    
    
    
    Atlas Capital Master Fund, L.P.
    
    $
    1,162,289.80
    
    
    
    664,166
    
    
    
    Atlas Capital (Q.P.), L.P.
    
    $
    387,429.93
    
    
    
    221,389
    
    
    
    Flyline Holdings, Ltd.
    
    $
    41,666.67
    
    
    
    
    
    
    
    59,524Kennebec Resources Inc.
    
    $
    387,429.93
    
    
    
    221,389
    
    
    
    Micro Capital Fund Ltd
    
    $
    116,228.98
    
    
    
    66,417
    
    
    
    Micro Capital Fund L.P.
    
    $
    271,200.95
    
    
    
    154,972
    
    
    
    Selz Family 1997 Trust, Selz Capital LLC
    
    $
    774,859.87
    
    
    
    442,777
    
    
    
    Sherleigh and Associates, Inc., Profit Sharing Plan
    
    $
    774,859.87
    
    
    
    442,777
    
    
    
    Siar Capital / Jack Silver
    
    $
    774,859.87
    
    
    
    442,777
    
    
    
    Total
    
    $
    5,465,685.73
    
    
    
    3,099,439.47
    
    
    
    59,524
 - 2 -




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Schedule 3
 Payment
    
    
    Number ofTo Exercise
    
    
    WarrantsAlexandra Global Master Fund
    
    $
    199,990
    
    
    $
    285,700Atlas Capital Master Fund, L.P.
    
    $
    299,985
    
    
    $
    428,550Atlas Capital (Q.P.), L.P.
    
    $
    99,995
    
    
    $
    142,850$
    Flyline Holdings, Ltd.
    
    $
    
    
    
    $
    142,850Kennebec Resources Inc.
    
    $
    99,995
    
    
    $
    142,850Micro Capital Fund Ltd
    
    $
    29,999
    
    
    $
    42,855Micro Capital Fund L.P.
    
    $
    69,997
    
    
    $
    99,995Selz Family 1997 Trust, Selz Capital LLC
    
    $
    199,990
    
    
    $
    285,700Sherleigh and Associates, Inc., Profit Sharing Plan
    
    $
    199,990
    
    
    $
    285,700Siar Capital / Jack Silver
    
    $
    199,990
    
    
    $
    285,700Total Notes Warrants
    
    $
    1,399,930
    
    
    $
    2,142,750Finder warrants
    
    $
    
    
    
    $
    118,000Jack Silver consulting warrants
    
    $
    350,000
    
    
    $
    500,000$
    1,749,930
    
    
    $
    2,760,750
 - 3 -