exv10w21



 





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]





2









 








     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/ Stephen J. Hansbrough	 	 
	 

	 	Name: Stephen J. Hansbrough	 	 
	 

	 	Title: President and CEO	 	 
	 
	 	 	 	 
	 

	 	SIEMENS HEARING INSTRUMENTS, INC.	 	 
	 
	 	 	 	 
	 

	 	By: /s/ William J. Lankenau	 	 
	 

	 	Name: William J. Lankenau	 	 
	 

	 	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/Charles Stone
	 	$	57,180.74	 
	AHS/Jerri McMahon
	 	 	19,060.20	 
	Professional Hearing Care
	 	 	1,088,888.00	 
	Professional Hearing Aid Services
	 	 	182,811.00	 
	Lonsway 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 OFFICE
	 	1250 Northpoint Parkway	 	West Palm Beach	 	FL	 	33407
	CALL CENTER
	 	1100 Northpoint Parkway	 	West Palm Beach	 	FL	 	33407
	Corporate Warehouse
	 	901  Northpoint Parkway	 	West Palm Beach	 	FL	 	33407
	19001
	 	3251 Hollywood Blvd., Ste. 424	 	Hollywood	 	FL	 	33021
	19003
	 	911 Village Blvd.	 	West Palm Beach	 	FL	 	33409
	19004
	 	15544 NW 77th Ct.	 	Miami Lakes	 	FL	 	33016
	19005
	 	12385 Pembroke Road #102	 	Pembroke Pines	 	FL	 	33025
	19007
	 	1001 East Commercial Blvd	 	Oakland Park	 	FL	 	33334
	19008
	 	354 North Congress Avenue	 	Boynton Beach	 	FL	 	33426
	19010
	 	7540 W. Commercial Blvd.	 	Lauderhill	 	FL	 	33319
	19012
	 	2966 Aventura Blvd.	 	City of Aventura	 	FL	 	33180
	19015
	 	8903 Glades Road	 	Boca Raton	 	FL	 	33434
	19016
	 	3864 W. Hillsboro Blvd.	 	Deerfield Beach	 	FL	 	33442
	19018
	 	7431-53/55 W. Atlantic Avenue	 	Delray Beach	 	FL	 	33446
	19022
	 	11141 U.S. Highway 19 North, Suite 300	 	Clearwater	 	FL	 	34624
	19024
	 	201 N. U.S. Hwy. #1	 	Jupiter	 	FL	 	33477
	19038
	 	8947 SW 107th Avenue	 	Miami	 	FL	 	33176
	19051
	 	3119-3121 Coral Way	 	Miami	 	FL	 	33145
	19061
	 	2291-2293 S.E. Federal Hwy	 	Stuart	 	FL	 	34994
	19063
	 	9070 S. Federal Highway	 	Port St. Lucie	 	FL	 	34952
	19065
	 	7701 Lake Worth Road	 	Lake Worth	 	FL	 	33467
	19080
	 	13178 Cortez Blvd	 	Brooksville	 	FL	 	34613
	19082
	 	947 Tyrone Boulevard North	 	St. Petersburg	 	FL	 	33710
	19083
	 	30220 - 222 US Highway 19 N	 	Clearwater	 	FL	 	33761
	19084
	 	6428 Massachusetts Ave.	 	New Port Richie	 	FL	 	34653
	19085
	 	4896 S. Tamiami Trail	 	Sarasota	 	FL	 	34231
	19087
	 	8841 College Pkwy.	 	Ft. Myers	 	FL	 	33919
	19088
	 	2000 Tamiami Trail #109	 	Port Charlotte	 	FL	 	33948
	19091
	 	729 Cortaro Drive	 	Ruskin	 	FL	 	33573
	19092
	 	3669 West Waters Avenue	 	Tampa	 	FL	 	33614-2783
	19093
	 	807 East Bloomingdale Ave.	 	Brandon	 	FL	 	33511
	19094
	 	6936 Medical View Lane	 	Zephyrhills	 	FL	 	33542-6602
	19095
	 	5602 Cortez Road West	 	Bradenton	 	FL	 	34210






 









 






	 	 	 	 	 	 	 	 	 
	LOCATION	 	PROPERTY	 	TOWN	 	 	 	ZIP
	NAME /#	 	ADDRESS	 	NAME	 	STATE	 	CODE
	19202
	 	600 East Altamonte Dr.	 	Altamonte Springs	 	FL	 	32701
	29000
	 	61 West Aurora Rd.	 	Northfield	 	OH	 	44067
	29401
	 	5220 Harrison Avenue	 	Cincinnati	 	OH	 	45238
	29402
	 	2651 Highland Avenue	 	Cincinnati	 	OH	 	45219
	29403
	 	8040 Reading Road	 	Cincinnati	 	OH	 	45238
	29412
	 	2865 Cranston Drive	 	Dublin	 	OH	 	43017
	29414
	 	6415 East Livingston Avenue, Suite B	 	Reynoldsburg	 	OH	 	43068
	29421
	 	2192 Stringtown Road	 	Grove City	 	OH	 	43123
	29441
	 	697 Hopewell Drive	 	Heath	 	OH	 	43056
	32301
	 	2566 Woodmeadow Drive SE	 	Grand Rapids	 	MI	 	49546
	32670
	 	4369 Miller Road	 	Flint	 	MI	 	48507
	32670
	 	17894 Mack Avenue #B	 	Grosse Pointe	 	MI	 	48230
	32673
	 	3027 E. Hill Road	 	Grand Blanc	 	MI	 	48439-8130
	32674
	 	31815 Southfield Road	 	Beverly Hills	 	MI	 	48025-5471
	32675
	 	14700 Farmington Road	 	Livonia	 	MI	 	48154
	32676
	 	2900 S State Street, Suite R6	 	Ann Arbor	 	MI	 	48104-6772
	32677
	 	1026 Professional Drive	 	Flint	 	MI	 	48532
	32678
	 	288 W. Nepessing Street	 	Lapeer	 	MI	 	48446
	33802
	 	6600 France Avenue South	 	South Edina	 	MN	 	55345
	33811
	 	6465 Wayzata Boulevard.	 	St. Louis Park	 	MN	 	55426
	35911
	 	729 Old Frontenac Square	 	St. Louis	 	MO	 	63131
	35913
	 	12352 Olive Street	 	Creve Coeur	 	MO	 	63141
	35914
	 	137 Flower Valley Center	 	Florissant	 	MO	 	63033
	35915
	 	1368 S 5TH Street	 	St Charles	 	MO	 	63301-2444
	35916
	 	7225 Watson Road	 	Shrewsbury	 	MO	 	63119
	35921
	 	1504 East Broadway	 	Columbia	 	MO	 	65201
	35931
	 	183 Concord Plaza Shopping	 	St. Louis	 	MO	 	63128-1307
	40001
	 	6038-6040 Bergenline Avenue	 	West New York	 	NJ	 	7093
	40002
	 	66 N Route 17	 	Paramus	 	NJ	 	7652
	40003
	 	126 Main St.	 	Princeton	 	NJ	 	8540
	40004
	 	1817 Mt. Holly Road	 	Burlington Township	 	NJ	 	8016
	40005
	 	1455 Route 1	 	Edison	 	NJ	 	8837
	40006
	 	1800 Clements Bridge Road	 	Deptford	 	NJ	 	8096
	40007
	 	500 Route 38	 	Cherry Hill	 	NJ	 	8002
	40008
	 	Monmouth Mall - Space 1224	 	Monmouth	 	NJ	 	7724
	40009
	 	1500 Route 47 South	 	Rio Grande	 	NJ	 	8242
	40011
	 	709 South Broadway	 	Pennsville	 	NJ	 	8070
	40012
	 	77 Sunset Strip	 	Succassunna	 	NJ	 	7876
	40013
	 	167 Route 37 East & Hooper Ave	 	Tom's River	 	NJ	 	8753
	40014
	 	125 W. Main Street	 	Somerville	 	NJ	 	8876
	40015
	 	3 Penn Plaza	 	Newark	 	NJ	 	7105
	 
	 	1080A Old Country Road	 	 	 	 	 	 
	42001
	 	405 Spring Street	 	Riverhead	 	NY	 	11901






 









 






	 	 	 	 	 	 	 	 	 
	LOCATION	 	PROPERTY	 	TOWN	 	 	 	ZIP
	NAME /#	 	ADDRESS	 	NAME	 	STATE	 	CODE
	42002
	 	420 Lexington Avenue	 	New York	 	NY	 	10017
	42003
	 	456 East Fordham Road	 	Bronx	 	NY	 	10458-6870
	42004
	 	1832 Veteran's Memorial Highway	 	Islandia	 	NY	 	11722
	42005
	 	200 East Post Road	 	White Plains	 	NY	 	10458
	42006
	 	196 Glen Cove Road	 	Carle Place	 	NY	 	11514-1222
	42007
	 	2257 Emmons Ave.	 	Brooklyn	 	NY	 	11235
	42008
	 	157-02 Cross Bay Boulevard	 	Howard Beach	 	NY	 	11414
	42009
	 	500 Seaview Avenue	 	Staten Island	 	NY	 	10305
	42011
	 	1776 Broadway, Suite 700	 	New York	 	NY	 	10019
	42012
	 	91-31 Queens Boulevard	 	Elmhurst	 	NY	 	11373
	42013
	 	355 Broadway	 	Amityville	 	NY	 	11701
	42017
	 	354 E. Jericho Turnpike	 	Mineola	 	NY	 	11501
	42201
	 	405 Spring Street	 	Jamestown	 	NY	 	14701
	42202
	 	2646 West State Street	 	Olean	 	NY	 	14760
	42203
	 	249 Main Street	 	Arcade	 	NY	 	14009
	43651
	 	500 Congress Street	 	Quincy	 	MA	 	2169
	43652
	 	135 Massachusetts Avenue	 	Arlington	 	MA	 	2474
	43654
	 	11 Bedford Street, First Floor	 	Burlington	 	MA	 	01803-3702
	43655
	 	578 Main Street	 	Malden	 	MA	 	2148
	43658
	 	20 Holland Street	 	Somerville	 	MA	 	2144
	43659
	 	306 Main Street	 	Wakefiled	 	MA	 	1880
	43660
	 	7 Essex Green Drive	 	Peabody	 	MA	 	1960
	80601
	 	737 Parkdale Ave.	 	Ottawa	 	ON	 	K1Y1J8
	80602
	 	501 Smyth Road	 	Ottawa	 	ON	 	K1H8L6
	80603
	 	1224 Place D'Orleans Drive	 	Orleans	 	ON	 	K1C7K3
	80604
	 	1250 Main Street	 	Stittsville	 	ON	 	K2S 1S9
	80605
	 	595 Montreal Road, Suite 404B	 	Vanier	 	ON	 	K1K4L2
	80611
	 	501 Princess Street	 	Kingston	 	ON	 	K7L1C3
	80612
	 	147 Pinnacle Street	 	Belleville	 	ON	 	K8N3A5
	80613S
	 	64 Ontario Street	 	Trenton	 	ON	 	K8V 6H9
	80621
	 	600 Tecumseh, Suite 341	 	Windsor	 	ON	 	N8X 4X9
	80622S
	 	181 Toronto Road	 	Port Hope	 	ON	 	L1A 3V5
	80623
	 	119 Isabella Street	 	Campbellford	 	ON	 	K0L 1L0
	80625
	 	186 Talbot Street, South	 	Essex	 	ON	 	N8M 1B6
	80626
	 	11811 Tecumseh Rd. East, Suite 110	 	Tecumseh	 	ON	 	N8M 4M7
	80627
	 	194 Talbot Street West, Suite 209	 	Leamington	 	ON	 	N8H 1N9
	80628S
	 	2125 Front Rd	 	LaSalle	 	ON	 	N9J 2C2
	80631
	 	147 Hunter Street East	 	Peterborough	 	ON	 	K9H 1G7
	80632
	 	84 Russell Street West	 	Lindsay	 	ON	 	K9V 6A5
	80633
	 	Haliburton Family Medicine Center	 	Haliburton	 	ON	 	K0M 1S0
	80634
	 	1385 Bank Street, Suite 205	 	Ottawa	 	ON	 	K0K 3K0






 









 






	2.	 	Office of Record for Accounts and Other Collateral: 1250 Northpoint Parkway, West
Palm Beach, Florida 33407
	 
	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: 1250 Northpoint Parkway, West Palm Beach, Florida 33407






	4.	 	Debtor’s Trade Names: “HEARx LTD.”, “Helix Hearing Care of America Corp.”, and
“National Ear Care Plan.”
	 
	5.	 	Debtor’s TAX ID Number: 22-2748248




 









 











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






2