Document:

exv10w1

 

Exhibit 10.1

PURCHASE AGREEMENT

          THIS PURCHASE AGREEMENT (“Agreement”) is made as of the 19th day of August, 2005 by and among
HEARUSA, INC., a Delaware corporation (the “Company”), and the Purchasers set forth on the
signature pages affixed hereto (each a “Purchaser” and collectively the “Purchasers”).

Recitals

          A. The Company and the Purchasers are executing and delivering this Agreement in reliance upon
the exemption from securities registration afforded by Section 4(2) under the Securities Act of
1933, as amended (“1933 Act”) and the provisions of Regulation D (“Regulation D”), as promulgated
by the U.S. Securities and Exchange Commission (the “SEC”) under the 1933 Act;

          B. The Purchasers wish to purchase, and the Company wishes to sell and issue to the
Purchasers, upon the terms and subject to the conditions stated in this Agreement up to $5.5
million of the Company’s 2005 Subordinated Notes due November 2008 in the form attached hereto as
Exhibit A (the “Notes”), and warrants to purchase an aggregate of 1.5 million shares of Common
Stock of the Company, par value $0.10 per share (“Common Stock”) (the “Warrants”), in the form
attached hereto as Exhibit B, in each case in the amount as are set forth on the signature page
attached hereto and executed by each such Purchaser; and

          C. Contemporaneous with the execution and delivery of this Agreement, the parties hereto are
executing and delivering a Registration Rights Agreement, in the form attached hereto as Exhibit C
(the “Registration Rights Agreement”), pursuant to which the Company has agreed to provide certain
registration rights under the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder, and applicable state securities laws;

          In consideration of the mutual promises made herein and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

     1. Definitions. In addition to those terms defined above and elsewhere in this
Agreement, for the purposes of this Agreement, the following terms shall have the mepanings here set
forth:

          1.1. “Affiliate” means, with respect to any Person, any other Person which directly or
indirectly controls, is controlled by, or is under common control with, such Person, where
“control” means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

          1.2. “Agreements” means this Agreement, the Registration Rights Agreement, the Notes
and the Warrants.

 

 

          1.3. The “Company” shall refer to the Company (as defined in the first paragraph
hereof).

          1.4. “Closing” means the consummation of the transactions contemplated by this
Agreement.

          1.5. “Material Adverse Effect” means a material adverse effect on the (i) condition
(financial or otherwise), business, assets or results of operations of the Company; (ii) ability of
the Company to perform any of its material obligations under the terms of the Agreements; or (iii)
material rights and remedies of a Purchaser under the terms of the Agreements.

          1.6. “Notes” shall have meaning set forth in the recitals to this Agreement.

          1.7. “Person” means an individual, corporation, partnership, limited liability
company, trust, business trust, association, joint stock company, joint venture, pool, syndicate,
sole proprietorship, unincorporated organization, governmental authority or any other form of
entity not specifically listed herein.

          1.8. “SEC” means the U.S. Securities and Exchange Commission.

          1.9. “SEC Filings” as defined in Section 4.6.

          1.10. “Securities” means the Notes, Warrants and Warrant Shares.

          1.11. “Warrants” shall have meaning set forth in the recitals to this Agreement.

          1.12. “Warrant Shares” means the shares of Common Stock issuable upon exercise of or
otherwise pursuant to the Warrants.

          1.13. “1933 Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

          1.14. “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

     2. Purchase and Sale of the Notes and Warrants. Subject to the terms and conditions
of this Agreement and on the basis of the representations and warranties made herein, each of the
Purchasers hereby severally, and not jointly, agrees to purchase, and the Company hereby agrees to
sell and issue to each of the Purchasers, a Note having a principal amount equal to the amount set
forth on such Purchaser’s signature page attached hereto, plus that number of Warrants calculated
by multiplying the principal face amount of the Purchaser’s Note by 0.2727. Each Purchaser’s
aggregate purchase price (the “Purchase Price”) is set forth on such Purchaser’s signature page
attached hereto.

2

 

     3. Closing.

          3.1. Closing Procedure. Upon receipt by the Company of executed Purchase Agreement(s)
for the purchase of all of the Notes and Warrants, the Company shall promptly notify such
Purchasers and set a date for the closing (the “Closing Date”).

          3.2. Closing Date Deliveries.

     (a) On the Closing Date, the Company shall deliver to the Purchasers:

	 	(i)	 	Notes in the form attached
as Exhibit A;
	 
	 	(ii)	 	Warrants in the form
attached as Exhibit B;
	 
	 	(iii)	 	The executed Registration
Rights Agreement in the form attached as Exhibit C; and
	 
	 	(iv)	 	An officer’s certificate
executed by an officer of the Company, certifying as to
satisfaction of applicable closing conditions; good standing;
and authorizing resolutions.

     (b) On the Closing Date, the Purchasers shall deliver to the Company:

	 	(i)	 	The Purchase Price set
forth on the Purchasers’ signature page hereto; and
	 
	 	(ii)	 	The executed Registration
Rights Agreement.

     4. Representations and Warranties of the Company. The Company hereby represents and
warrants to the Purchasers that:

          4.1. Organization, Good Standing and Qualification. The Company is a corporation
validly existing and in good standing under the laws of Delaware and has all requisite corporate
power and authority to carry on its business as now conducted and own its properties. The Company
is duly qualified to do business as a foreign corporation and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of property makes
such qualification or licensing necessary unless the failure to so qualify would not result in a
Material Adverse Effect.

          4.2. Authorization. The Company has full corporate power and authority and has taken
all requisite action on the part of the Company necessary for (i) the authorization, execution and
delivery of the Agreements, (ii) authorization of the performance of all obligations of the Company
hereunder and thereunder, and (iii) the authorization, issuance (or reservation for issuance) and
delivery of the Securities. The Agreements constitute the legal, valid and binding obligations of
the Company, enforceable

3

 

against the Company in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating
to or affecting creditors’ rights generally.

          4.3. Capitalization. Set forth on Schedule 4.3 hereto is (a) a description of
the authorized capital stock of the Company on the date hereof; (b) the number of shares of capital
stock issued and outstanding on the date hereof; (c) the number of shares of capital stock issuable
pursuant to the Company’s stock plans; and (d) the number of shares of capital stock issuable and
reserved for issuance pursuant to securities (other than the Warrants) exercisable for, or
convertible into or exchangeable for any shares of capital stock. All of the issued and
outstanding shares of the Company’s capital stock have been duly authorized and validly issued and
are fully paid and nonassessable. Except as set forth on Schedule 4.3, no Person is
entitled to preemptive or similar statutory or contractual rights with respect to any securities of
the Company.

          4.4. Valid Issuance. As of the Closing, the Company has reserved a sufficient number
of shares of Common Stock for the issuance upon exercise of or otherwise pursuant to the Warrants.
The Warrants and Warrant Shares are duly authorized, and such Securities, when issued in accordance
herewith and, in respect of the Warrant Shares, pursuant to the terms of the Warrants, will be
validly issued, fully paid, non-assessable and free and clear of all encumbrances and restrictions,
except for restrictions on transfer imposed by applicable securities laws.

          4.5. Consents. Except as set forth on Schedule 4.5, the execution, delivery
and performance by the Company of the Agreements and, subject to the truth and accuracy of the
representations made by the Purchasers in Sections 5 of this Agreement, the offer, issuance and
sale of the Securities, require no consent of, action by or in respect of, or filing with, any
Person, agency, or official, other than filings that have been made pursuant to applicable state
securities laws and post-sale filings pursuant to applicable state and federal securities laws and
the requirements of the American Stock Exchange, which the Company undertakes to file within the
applicable time periods.

          4.6. SEC Filings; Business. In the last 12 months, the Company has filed all reports,
schedules, forms, statements and other documents required to be filed by it with the SEC pursuant
to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”)
(all of the foregoing filed prior to or on the date hereof and all exhibits included therein and
financial statements and schedules thereto and documents incorporated by reference therein being
hereinafter referred to as the “SEC Filings”). As of the date of filing of such SEC Filings, each
such SEC Filing, as it may have been subsequently amended by filings made by the Company with the
SEC prior to the date hereof, complied in all material respects with the requirements of the 1934
Act and the rules and regulations of the SEC promulgated thereunder applicable to such SEC Filing.
None of the SEC Filings, as of the date filed and as they may have been subsequently amended by
filings made by the Company with the SEC prior to the date hereof, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading. As of their respective dates, the financial statements of the Company
included in the SEC Filings complied as to form in all material respects

4

 

with applicable accounting requirements and published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with generally
accepted accounting principles, consistently applied, during the periods involved (except (i) as
may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case
of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or
summary statements) and fairly present in all material respects the financial position of the
Company as of the dates thereof and the results of its operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).
The Company is not aware of any fact or circumstance that would result or reasonably be likely to
result in the Company receiving a “going concern” opinion or qualification from its independent
auditors with respect to the Company’s financial position for the year ended December 31, 2005.
The Company is engaged only in the business described in the SEC Filings and the SEC Filings
contain a complete and accurate description of the business of the Company in all material
respects.

          4.7. Use of Proceeds. The proceeds of the sale of the Securities hereunder shall be
used by the Company to redeem the Company’s 1998-E Series Convertible Preferred Stock and for
general working capital purposes.

          4.8. No Material Adverse Change. Except as disclosed and described in the Company’s
SEC Filings, there has not been:

               (a) any change in the consolidated assets, liabilities, financial condition or operating
results of the Company, except changes in the ordinary course of business which have not had, in
the aggregate, a Material Adverse Effect;

               (b) any declaration or payment of any dividend, or any authorization or payment of any
distribution, on any of the capital stock of the Company, or any redemption or repurchase of any
securities of the Company;

               (c) any material damage, destruction or loss, whether or not covered by insurance, to any
assets or properties of the Company or any of its subsidiaries;

               (d) any waiver by the Company of a material right or of a material debt owed to it;

               (e) any satisfaction or discharge of any lien, claim or encumbrance or payment of any
obligation by the Company, except in the ordinary course of business and which is not material to
the assets, properties, financial condition, operating results or business of the Company taken as
a whole (as such business is presently conducted and as it is proposed to be conducted);

               (f) any material change or amendment to or breach or default of a material contract or
arrangement by which the Company or any of its assets or properties is bound or subject;

               (g) any material labor difficulties or labor union organizing activities with respect to
employees of the Company;

5

 

               (h) any transaction entered into by the Company other than in the ordinary course of business;
or

               (i) any other event or condition of any character that the Company believes will have a
Material Adverse Effect.

          4.9. Form S-3 Eligibility. The Company is currently eligible to register the resale
of its Common Stock on a registration statement on Form S-3 under the 1933 Act.

          4.10. No Conflict, Breach, Violation or Default; Compliance with Law. (a) The
execution, delivery and performance of the Agreements by the Company and the issuance and sale of
the Securities will not conflict with or result in a breach or violation of any of the terms and
provisions of, or constitute a default under (i) the Company’s Certificate of Incorporation
(including any certificates of designation) or the Company’s Bylaws, both as in effect on the date
hereof, (ii) except where it would not have a Material Adverse Effect, any statute, rule,
regulation or order of any governmental agency or body or any court, domestic or foreign, having
jurisdiction over the Company or any of its properties; or (iii) except as set forth on
Schedule 4.10 or where it would not have a Material Adverse Effect, any contract by which
the company or its property is bound. (b) Except where it would not have a Material Adverse
Effect, to the Company’s knowledge, it (i) is not in violation of any statute, rule or regulation
applicable to the Company or its assets or its activities, and (ii) is not in violation of any
judgment, order or decree applicable to the Company or its assets. (c) The Company has not
received notice from any Person of any claim, investigation or inquiry, that, if adversely
determined, would render the preceding sentence untrue or incomplete and the Company is aware of no
facts or circumstances which could give rise to such a claim, investigation or inquiry.

          4.11. Tax Matters. The Company has timely prepared and filed all tax returns required
to have been filed by the Company with all appropriate governmental agencies and timely paid all
taxes owed by it, in each case taking into account permitted extensions. The charges, accruals and
reserves on the books of the Company in respect of taxes for all fiscal periods are adequate in all
material respects, and there are no material unpaid assessments against the Company nor, to the
knowledge of the Company, any basis for the assessment of any additional taxes, penalties or
interest for any fiscal period or audits by any federal, state or local taxing authority except
such as which are not material. All material taxes and other assessments and levies that the
Company is required to withhold or to collect for payment have been duly withheld and collected and
paid to the proper governmental entity or third party when due. There are no tax liens or claims
pending or threatened against the Company or any of its respective assets or property. There are
no outstanding tax sharing agreements or other such arrangements between the Company and any other
corporation or entity.

          4.12. Title to Properties and Securities. Except as disclosed in the SEC Filings, the
Company has good and marketable title to all real properties and all other properties and assets
owned by it and material to its operations, in each case free from liens, encumbrances and defects
that would materially affect the value thereof or materially interfere with the use made or
currently planned to be made thereof by them; and except as

6

 

disclosed in the SEC Filings, the Company holds any leased real or personal property material
to the Company’s operations under valid and enforceable leases with no exceptions that would
materially interfere with the use made or currently planned to be made thereof by them.

          4.13. Certificates, Authorities and Permits. The Company possesses adequate
certificates, authorities or permits issued by appropriate governmental agencies or bodies
necessary to conduct the business now operated by it and has not received any notice of proceedings
relating to the revocation or modification of any such certificate, authority or permit that, if
determined adversely to the Company, would individually or in the aggregate have a Material Adverse
Effect.

          4.14. No Labor Disputes. No material labor dispute with the employees of the Company
exists or, to the knowledge of the Company, is imminent.

          4.15. Intellectual Property. The Company owns or possesses adequate rights or
licenses to the inventions, know-how, patents, patent rights, copyrights, trademarks, trade names,
licenses, approvals, governmental authorizations, trade secrets confidential information and other
intellectual property rights necessary to conduct the business now operated by it and presently
contemplated to be operated by it (collectively, “Intellectual Property Rights”), free and clear of
all liens, security interests, charges, encumbrances, equities and other adverse claims, and the
Company has not received any notice of infringement of or conflict with asserted rights of others
with respect to any Intellectual Property Rights except as disclosed in the SEC Filings and except
as to any such claims that would not have a Material Adverse Effect. Except as set forth on
Schedule 4.15 hereto, none of the Company’s Intellectual Property Rights have expired or
terminated, or are expected to expire or terminate within three years from the date of this
Agreement, except where such expirations or termination would not result, either individually or in
the aggregate, in a Material Adverse Effect. To the knowledge of the Company, the Company’s patents
and other Intellectual Property Rights and the present activities of the Company do not infringe
any patent, copyright, trademark, trade name or other proprietary rights of any third party where
such infringement may cause a Material Adverse Effect on the Company, and there is no claim, action
or proceeding being made or brought against, or to the Company’s knowledge, being threatened
against, the Company regarding its Intellectual Property Rights, and the Company is unaware of any
facts or circumstances which might give rise to any of the foregoing. The Company has no knowledge
of the material infringement of its Intellectual Property Rights by third parties and has no reason
to believe that any of its Intellectual Property Rights is unenforceable, and the Company is
unaware of any facts or circumstances which might give rise to any of the foregoing. The Company
has taken commercially reasonable security measures to protect the secrecy, confidentiality and
value of all of its intellectual properties.

          4.16. Environmental Matters. The Company is not in violation of any statute, rule,
regulation, decision or order of any governmental agency or body or any court, domestic or foreign,
relating to the use, disposal or release of hazardous or toxic substances or relating to the
protection or restoration of the environment or human exposure to hazardous or toxic substances
(collectively, “Environmental Laws”), does not own or operate any real property contaminated with
any substance that is subject to any

7

 

Environmental Laws, is not liable for any off-site disposal or contamination pursuant to any
Environmental Laws, and is not subject to any claim relating to any Environmental Laws, which
violation, contamination, liability or claim would individually or in the aggregate have a Material
Adverse Effect; and the Company is not aware of any pending investigation that might lead to such a
claim.

          4.17. Absence of Litigation. Except as disclosed in the section titled “Legal
Proceedings” in (i) the Company’s Annual Report on Form 10-K for the year ended December 25, 2004
or (ii) any of the Company’s SEC Filings filed since the filing of such Form 10-K, there is no
action, suit, proceeding, inquiry or investigation before or by any court, public board, government
agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of
its Subsidiaries, threatened in writing against the Company or any of the Company’s Subsidiaries or
any of the Company’s or the Company’s Subsidiaries’ officers or directors in their capacities as
such, that would reasonably be expected to result in judgments against the Company or any of its
Subsidiaries in an amount, individually or in the aggregate, in excess of $250,000.

          4.18. Financial Statements. The financial statements included in each SEC Filings
present fairly and accurately in all material respects the consolidated financial position of the
Company as of the dates shown and its consolidated results of operations and cash flows for the
periods shown, and such financial statements have been prepared in conformity with generally
accepted accounting principles applied on a consistent basis. Except as set forth in the financial
statements of the Company included in the SEC Filings filed prior to the date hereof, the Company
has no liabilities, contingent or otherwise, except those which individually or in the aggregate
are not material to the financial condition or operating results of the Company.

          4.19. Insurance Coverage. The Company maintains in full force and effect insurance
coverage that the Company reasonably believes to be adequate against all liabilities, claims and
risks against which it is customary for comparably situated companies to insure.

          4.20. Compliance with AMEX Continued Listing Requirements. There are no proceedings
pending or to the Company’s knowledge threatened against the Company relating to the continued
listing of the Company’s Common Stock on the American Stock Exchange.

          4.21. Brokers and Finders. The Purchasers shall have no liability or responsibility
for the payment of any commission or finder’s fee to any third party in connection with or
resulting from this agreement or the transactions contemplated by this Agreement by reason of any
agreement of or action taken by the Company. Upon Closing, the Company shall pay to any finder in
connection with the transactions contemplated hereby any finder’s fee(s) owing to such finder
pursuant to a separate agreement or arrangement with the Company entered into concurrently herewith
or prior to such Closing.

          4.22. No General Solicitation. Neither the Company nor any Person acting on its
behalf has conducted any general solicitation or general advertising (as those terms are used in
Regulation D) in connection with the offer or sale of any of the Securities.

8

 

          4.23. Issuance of Securities. The Securities are duly authorized and, upon issuance in
accordance with the terms of the applicable agreements, shall be (i) validly issued, fully paid and
non-assessable and (ii) free from all taxes, liens and charges with respect to the issuance thereof
(other than any such taxes, liens and charges created by any Buyer or assignee or transferee), and
shall not be subject to pre-emptive rights or other similar rights of shareholders of the Company.
As of the Closing, a sufficient number of shares of Common Stock will have been duly authorized and
reserved for issuance upon exercise of the Warrants as of the Closing. Upon issuance in accordance
with the Warrants, the Warrant Shares will be validly issued, fully paid and non-assessable and
free from all taxes, liens and charges with respect to the issue thereof (other than any such
taxes, liens and charges created by any Purchaser or any assignee or transferee), with the holders
being entitled to all rights accorded to a holder of Common Stock.

     5. Representations and Warranties of the Purchaser. Each of the Purchasers hereby
severally, and not jointly, represents and warrants to the Company that:

          5.1. Organization and Existence. The Purchaser is a validly existing corporation,
partnership, limited liability company or individual and has all requisite corporate, partnership,
limited liability company or personal power and authority, as the case may be, to invest in the
Securities pursuant to this Agreement.

          5.2. Authorization. The execution, delivery and performance by the Purchaser of this
Agreement and the Registration Rights Agreement have been duly authorized and this Agreement and
the Registration Rights Agreement will each constitute the valid and legally binding obligations of
the Purchaser, enforceable against the Purchaser in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability, relating to or affecting creditors’ rights generally.

          5.3. Purchase Entirely for Own Account. The Securities to be received by the
Purchaser hereunder will be acquired for the Purchaser’s own account, not as nominee or agent, and
not with a view to the resale or distribution of any part thereof and the Purchaser has no present
intention of selling, granting any participation in, or otherwise distributing the same. The
Purchaser is not a registered broker dealer or an entity engaged in the business of being a broker
dealer.

          5.4. Investment Experience. The Purchaser acknowledges that it can bear the economic
risk and complete loss of its investment in the Securities and has such knowledge and experience in
financial or business matters and in private placement transactions of companies similar to the
Company so that it is capable of evaluating the merits and risks of the purchase contemplated
hereby.

          5.5. Disclosure of Information. The Purchaser has had an opportunity to receive
documents related to the Company and to ask questions of and receive answers from the Company
regarding the Company, its business and the terms and conditions of the offering of the Securities
and has received and read the SEC Filings filed via EDGAR. Neither such inquiries nor any other
due diligence investigation conducted by the Purchaser

9

 

shall modify, amend or affect the Purchaser’s right to rely on the Company’s representations
and warranties contained in this Agreement or made pursuant to this Agreement.

          5.6. Restricted Securities. The Purchaser understands that the Securities are
characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they
are being acquired from the Company in a transaction not involving a public offering and that under
such laws and applicable state laws and regulations such securities may be resold without
registration under the 1933 Act only in certain limited circumstances.

          5.7. Legends. It is understood that, until registration for resale pursuant to the
Registration Rights Agreement or until sales under Rule 144(k) are permitted, certificates
evidencing the Securities may bear one or all of the following legends or legends substantially
similar thereto:

     (a) “The shares represented by this certificate may not be transferred without
(i) the opinion of counsel reasonably satisfactory to the corporation that such
transfer may lawfully be made without registration under the Securities Act of 1933
or qualification under applicable state securities laws; or (ii) such registration
or qualification.”

     (b) If required by the authorities of any state in connection with the
issuance of sale of the Securities, the legend required by such state authority.

          Upon registration for resale pursuant to the Registration Rights Agreement or upon Rule 144(k)
under the 1933 Act becoming available, the Company shall promptly cause certificates evidencing
Warrant Shares previously issued to be replaced with certificates which do not bear such
restrictive legends, and all Warrant Shares subsequently issued shall not bear such restrictive
legends and each Purchaser will certify to the Company that it will thereafter sell the Common
Stock evidenced by such unlegended certificates only pursuant to the Prospectus (as defined in the
Registration Rights Agreement) as permitted under the Registration Rights Agreement or pursuant to
Rule 144(k).

          5.8. Accredited Investor. The Purchaser is an “accredited investor” as defined in
Rule 501(a) of Regulation D, as amended, under the 1933 Act.

          5.9. No General Solicitation. The Purchaser did not learn of the investment in the
Securities as a result of any public advertising or general solicitation.

          5.10. Compliance with Law. The Purchaser has not engaged in market transactions in
the Company’s securities since learning of the offering of the Securities.

     6. Closing Documents. The parties acknowledge and agree that part of the inducement
for the Purchasers to enter into this Agreement is the Company’s execution and delivery of the
Registration Rights Agreement. The parties acknowledge and agree that on or prior to the Closing,
the Registration Rights Agreement will be duly executed and delivered by the parties thereto.

10

 

     7. Covenants and Agreements of the Company.

          7.1. Reservation of Common Stock issuable upon Exercise of Warrants. The Company
hereby agrees at all times to reserve and keep available out of its authorized but unissued shares
of Common Stock, solely for the purpose of providing for the exercise of the Warrants, such number
of shares of Common Stock as shall equal the number of shares sufficient to permit the full
exercise of the Warrants in accordance with the terms of the Warrants.

          7.2. Press Releases. Any press release or other publicity concerning this Agreement
or the transactions contemplated by this Agreement shall be submitted to the Purchasers for comment
one business day prior to issuance, unless the release is required to be issued within a shorter
period of time by law or pursuant to the rules of the American Stock Exchange or another national
securities exchange or market.

          7.3. No Conflicting Agreements. The Company will not take any action, enter into any
agreement or make any commitment that would conflict or interfere in any material respect with the
obligations to the Purchasers under the Agreements.

          7.4. Insurance. For so long as any Purchaser beneficially owns any of the Securities,
the Company shall have in full force and effect (a) insurance reasonably believed by the Company to
be adequate on all assets and activities, covering property damage and loss of income by fire or
other casualty, and (b) insurance reasonably believed to be adequate protection against all
liabilities, claims and risks against which it is customary for companies similarly situated as the
Company to insure.

          7.5. Compliance with Laws. So long as the Purchasers beneficially own any Securities,
the Company will use reasonable efforts to comply with all applicable laws, rules, regulations,
orders and decrees of all governmental authorities, except to the extent non-compliance (in one
instance or in the aggregate) would not have a Material Adverse Effect.

          7.6. Listing of Warrant Shares and Related Matters. The Company hereby agrees,
promptly following the last of the Closing Date of the transactions contemplated by this Agreement,
to take such action to cause the Warrant Shares to be listed on the American Stock Exchange as
promptly as possible but no later than the effective date of the registration contemplated by the
Registration Rights Agreement. The Company further agrees that if the Company applies to have its
Common Stock or other securities traded on any other principal stock exchange or market, it will
include in such application the Warrant Shares and will take such other action as is necessary to
cause such Common Stock to be so listed. For so long as any Warrants remain outstanding, the
Company will take all action necessary to continue the listing and trading of its Common Stock on
the American Stock Exchange, the New York Stock Exchange, the Nasdaq National Market or the Nasdaq
Small-Cap Market (collectively, “Approved Markets”), and will comply in all respects with the
Company’s reporting, filing and other obligations under the bylaws or rules of such exchange or
market, as applicable, to ensure the continued eligibility for trading of the Warrant Shares
thereon.

11

 

          7.7. Form S-3 Eligibility. For so long as the registration statement contemplated by
the Registration Rights Agreement remains effective, the Company shall use commercially reasonable
efforts to remain eligible to register the resale of its Common Stock on a registration statement
on Form S-3 under the 1933 Act.

          7.8. Corporate Existence. So long as any Warrants remain outstanding, the Company
shall maintain its corporate existence, except in the event of a merger, consolidation or sale of
all or substantially all of the Company’s assets so long as the surviving or successor entity in
such transaction (a) assumes the Company’s obligations hereunder and under the agreements and
instruments entered into in connection herewith, regardless of whether or not the Company would
have had a sufficient number of shares of Common Stock authorized and available for issuance in
order to fulfill its obligations hereunder and effect the exercise in full of all Warrants
outstanding as of the date of such transaction; and (b) has no legal, contractual or other
restrictions on its ability to perform the obligations of the Company hereunder and under the
agreements and instruments entered into in connection herewith.

          7.9. Application of Certain Proceeds. Following the payment of any amounts owed by
the Company to Siemens Hearing Instruments, Inc. pursuant to the agreements in effect on the date
of Closing, any proceeds from the sale of securities by the Company while any Notes are outstanding
shall be used to pay down the outstanding Principal Amount of all of the outstanding Notes on a
pro-rata basis.

          7.10. Sales by Chairman. For so long as any Notes are outstanding, the Company shall
restrict sales of Common Stock by its Chairman, Paul A. Brown, M.D., to those (i) donated to
charitable organizations and (ii) sold pursuant to an arrangement that complies with Rule 10b5-1
under the 1934 Act.

     8. Participation in Future Transactions. If at any time prior to the first
anniversary of the Closing, the Company intends to close any private placement of its equity
securities in a capital raising transaction, the Company shall give five (5) days prior notice to
the Purchasers in a writing that contains all significant business terms of the proposed
transaction. Each Purchaser shall then have the right to participate (pro rata in accordance with
such Purchaser’s participation in the offering contemplated by this Agreement) in such new
placement and purchase such securities for the same consideration and on the same terms and
conditions as contemplated by such third-party sale, which right must be exercised by the Purchaser
in a writing to the Company delivered within five (5) days of the Company’s notice. If, subsequent
to the Company giving notice to the Purchasers hereunder, the terms and conditions of the proposed
third-party sale are changed from those disclosed in the Company’s notice, the Company shall
provide a new notice to the Purchasers, which shall trigger a new right to participate. The
foregoing participation right shall not apply to offers of securities in connection with any
acquisition by the Company of any business, assets or technologies, or to any strategic investor,
vendor, customer, lease or similar arrangement, the primary purpose of which is not to raise equity
capital.

     9. Survival. All representations and warranties contained in this Agreement shall
survive for one year following the Closing of the transactions contemplated hereby.

12

 

     10. Miscellaneous.

          10.1. Successors and Assigns. This Agreement may not be assigned by the Company. A
Purchaser may assign its rights and delegate its duties hereunder in whole or in part to any Person
(who is not a competitor or vendor of the Company) to which such Purchaser has transferred or
assigned all or part of its Notes or Warrants in accordance with the terms of the Notes and
Warrants, provided in each case that such transferee or assignee acknowledges in writing to the
Company that the representations and warranties contained in Section 5 hereof shall apply to such
transferee or assignee. The terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective permitted successors and assigns of the parties. Nothing in
this Agreement, express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement.

          10.2. Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

          10.3. Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

          10.4. Notices. Unless otherwise provided, any notice required or permitted under this
Agreement shall be given in writing and shall be deemed effectively given only upon delivery to
each party to be notified by (i) personal delivery, (ii) facsimile, with electronic confirmation of
transmittal, (iii) certified mail, return receipt requested, or (iv) an internationally recognized
overnight air courier, addressed to the party to be notified at the address as follows, or at such
other address as such party may designate by ten days’ advance written notice to the other party:

If to the Company:

HearUSA, Inc.

1250 Northpoint Parkway

West Palm Beach, FL 33407

Fax: 561/688-8893

Attention: CEO

With a copy to:

Bryan Cave LLP

700 Thirteenth Street, N.W.

Washington, D.C. 20005-3960

Fax: (202) 508-6200

Attention: LaDawn Naegle, Esq.

If to the Purchasers, to the addresses set forth on the

13

 

signature pages hereto.

          10.5. Expenses. The parties hereto shall pay their own costs and expenses in
connection herewith; provided, however, the Company shall reimburse the lead investor up to $50,000
to cover documented and reasonable due diligence and legal expenses incurred directly in connection
with the transactions contemplated hereby. The Company shall pay all fees and expenses of any
placement agents or finders in connection with the transactions contemplated by this Agreement
pursuant to a separate agreement between such parties and the Company.

          10.6. Amendments and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of the Company
and each Purchaser to be bound by such amendment or waiver.

          10.7. Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and the
balance of this Agreement shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

          10.8. Entire Agreement. This Agreement, including the Exhibits and Schedules hereto,
the Registration Rights Agreement, the Notes and the Warrants and the other documents contemplated
hereby constitute the entire agreement among the parties hereof with respect to the subject matter
hereof and thereof and supersede all prior agreements and understandings, both oral and written,
between the parties with respect to the subject matter hereof and thereof.

          10.9. Further Assurances. The parties shall execute and deliver all such further
instruments and documents and take all such other actions as may reasonably be required to carry
out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein
contained.

          10.10. Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York without regard to principles of conflicts of
laws.

          10.11. Remedies. The Purchasers shall be entitled to specific performance of the
Company’s obligations under the Agreements.

          10.12. Like Treatment of Purchasers and Holders. The Company shall not, directly or
indirectly, redeem any Securities unless such offer of redemption is made pro rata to all
Purchasers or holders of Securities, as the case may be, on identical terms. For clarification
purposes, this provision constitutes a separate right granted to each Purchaser by the Company and
negotiated separately by each Purchaser, and shall not in any way be construed as the Purchasers
acting in concert or as a group with respect to the purchase, disposition or voting of Securities
or otherwise.

14

 

          10.13. Actions of Purchasers. The obligations of each Purchaser hereunder and under
the documents contemplated hereby are several and not joint with the obligations of any other
Purchaser, and no Purchaser shall in any way be responsible for the performance of the obligations
of any other Purchaser under any such document. Nothing contained herein or in any other document
contemplated hereby, and no action taken by any Purchaser pursuant hereto or thereto, shall be
deemed to constitute any of the Purchasers as a partnership, an association, a joint venture or any
other kind of entity, or create a presumption that the Purchasers are in any way acting in concert
or as a group with respect to such obligations or the transactions contemplated hereby or thereby.
Each Purchaser confirms that it has independently participated in the negotiation of the
transaction contemplated hereby with the advice of its own counsel and advisors. Each Purchaser
shall be entitled to independently protect and enforce its rights, including, without limitation,
the rights arising out of this Agreement or out of any other document contemplated hereby, and it
shall not be necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

15

 

          IN WITNESS WHEREOF, the parties have executed this Purchase Agreement as of the date first
above written.

	 	 	 
	The Company:

	 	HEARUSA, INC.
	 
	 	 
	

	 	By: /s/ Stephen J. Hansbrough
	

	 	Name: Stephen J. Hansbrough
	

	 	Title: President and CEO

16

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	C.E. Unterberg, Towbin Capital Partners I, L.P.
	

	 	Name:
	 
	 	 
	

	 	/s/ Andrew Arno
	

	 	By: Andrew Arno
	 
	 	 
	

	 	Managing Member of the General Partner
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$500,000.00
	Principal Amount of Notes:

	 	$500,000.00
	No. of Warrants:

	 	136,360
	 
	 	 
	Residence:

	 	                                        
	 
	 	 
	Address for Notices:

	 	C.E. Unterberg, Towbin
	

	 	350 Madison Ave.
	

	 	New York, NY 10017
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	Kevin Casey
	

	 	Name:
	 
	 	 
	

	 	/s/ Kevin Casey
	

	 	By:
	 
	 	 
	

	 	                                        
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$75,000
	Principal Amount of Notes:

	 	$75,000
	No. of Warrants:

	 	20,454
	 
	 	 
	Residence:

	 	                                        
	 
	 	 
	Address for Notices:

	 	333 East 46th Street, Apt. 18D
	

	 	New York, NY 10017
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	Castle Creek Technology Partners
	

	 	Name:
	 
	 	 
	

	 	Stephen D. Friend
	

	 	By:
	 
	 	 
	

	 	Stephen D. Friend
	

	 	Managing Director of the
	

	 	Investment Manager
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$500,000
	Principal Amount of Notes:

	 	$500,000
	No. of Warrants:

	 	136,360
	 
	 	 
	Residence:

	 	                                        
	 
	 	 
	Address for Notices:

	 	Castle Creek Technology Partners LLC
	

	 	111 West Jackson Blvd., Suite 2020
	

	 	Chicago, IL 60604
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	Cordillera Fund, L.P.
	

	 	Name:
	 
	 	 
	

	 	/s/ James P. Andrew
	

	 	By: James P. Andrew
	

	 	Co-CEO of Andrew Carter Capital, Inc.
	

	 	General Partner of ACCF GenPar, L.P.
	

	 	General Partner of the Cordillera Fund, L.P.
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$750,000.00
	Principal Amount of Notes:

	 	$750,000.00
	No. of Warrants:

	 	204,540
	 
	 	 
	Residence:

	 	Texas, USA
	 
	 	 
	Address for Notices:

	 	8201 Preston Road
	

	 	Suite 400
	

	 	Dallas, TX 75225
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	as above
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	Graham Partners LP
	

	 	Name:
	 
	 	 
	

	 	/s/ Harold Berry
	

	 	By:Harold Berry
	 
	 	 
	

	 	Portfolio Manager
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$550,000.00
	Principal Amount of Notes:

	 	$550,000.00
	No. of Warrants:

	 	149,996
	 
	 	 
	Residence:

	 	                                        
	 
	 	 
	Address for Notices:

	 	200 Park Avenue
	

	 	Suite 3900
	

	 	New York, NY 10166
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	Nite Capital LP
	

	 	Name:
	 
	 	 
	

	 	/s/ Keith A. Goodman
	

	 	By:
	 
	 	 
	

	 	Keithe A. Goodman
	

	 	Manager of the General Partner
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$250,000
	Principal Amount of Notes:

	 	$250,000
	No. of Warrants:

	 	68,180
	 
	 	 
	Residence:

	 	                                        
	 
	 	 
	Address for Notices:

	 	Nite Capital LP
	

	 	100 East Cook Avenue, Ste 201
	

	 	Libertyville, IL 60048
	

	 	Attn: Keith Goodman
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	William Kane Mahon
	

	 	Name:
	 
	 	 
	

	 	/s/ William Kane Mahon
	

	 	By:
	 
	 	 
	

	 	                                        
	

	 	Title:
	Purchase Price:

	 	$100,000
	Principal Amount of Notes:

	 	$100,000
	No. of Warrants:

	 	27,272
	 
	 	 
	Residence:

	 	                                        
	 
	 	 
	Address for Notices:

	 	210 Little John Trail
	

	 	Atlanta, GA 30309
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	MidSouth Investor Fund LP
	

	 	Name:
	 
	 	 
	

	 	/s/ Lyman O. Heidtke
	

	 	By:Lyman O. Heidtke
	 
	 	 
	

	 	General Partner
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$                    
	Principal Amount of Notes:

	 	$300,000
	No. of Warrants:

	 	                                        
	 
	 	 
	

	 	1776 Peachtree St. NW Suite 412 North
	Residence:

	 	Atlanta, GA 30309
	 
	 	 
	Address for Notices:

	 	c/o Heidtke & Company, Inc.
	

	 	201 4th Ave. North, Suite 1950
	

	 	or P.O. Box 190666
	

	 	Nashville, TN 37219
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	`

	 	Purchasers:
	 
	 	 
	

	 	Richard S. Press
	

	 	Name:
	 
	 	 
	

	 	/s/ Richard S. Press
	

	 	By:
	 
	 	 
	

	 	                                        
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$200,000
	Principal Amount of Notes:

	 	$                    
	No. of Warrants:

	 	54,544
	 
	 	 
	Residence:

	 	101 Bogle Street, Waston MA 02493
	 
	 	 
	Address for Notices:

	 	Wellington Management Company
	

	 	75 State Street
	

	 	Boston, MA 02109
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	Edmund H. Shea
	

	 	Name:
	 
	 	 
	

	 	/s/ Edmund H. Shea
	

	 	By:
	 
	 	 
	

	 	                                        
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$750,000
	Principal Amount of Notes:

	 	$750,000
	No. of Warrants:

	 	204,540
	 
	 	 
	Residence:

	 	                                        
	 
	 	 
	Address for Notices:

	 	Shea Ventures
	

	 	655 Brea Canyon
	

	 	Walnut, CA 91789
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	Straus Partners LP
	

	 	Name:
	 
	 	 
	

	 	/s/ Melville Straus
	

	 	By: Melville Straus
	 
	 	 
	

	 	Managing Principal
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$275,000
	Principal Amount of Notes:

	 	$275,000
	No. of Warrants:

	 	74,998
	 
	 	 
	Residence:

	 	NY
	 
	 	 
	Address for Notices:

	 	Straus Asset Management
	

	 	605 Third Avenue
	

	 	New York, NY 10158-3698
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	Straus-GEPT Partners LP
	

	 	Name:
	 
	 	 
	

	 	/s/ Melville Straus
	

	 	By:Melville Straus
	 
	 	 
	

	 	Managing Principal
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$225,000
	Principal Amount of Notes:

	 	$225,000
	No. of Warrants:

	 	61,362
	 
	 	 
	Residence:

	 	NY
	 
	 	 
	Address for Notices:

	 	Straus Asset Management
	

	 	605 Third Avenue
	

	 	New York, NY 10158-3698
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	Smithfield Fiduciary LLC
	

	 	Name:
	 
	 	 
	

	 	/s/ Scott M. Wallace
	

	 	By: Scott M. Wallace
	 
	 	 
	

	 	Authorized Signatory
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$ 500,000
	Principal Amount of Notes:

	 	$ 500,000
	No. of Warrants:

	 	136,360
	 
	 	 
	Residence:

	 	Cayman Islands
	 
	 	 
	Address for Notices:

	 	c/o Highbridge Capital management LLC
	

	 	9 West 57th Street, 27th Floor
	

	 	New York, NY 10019
	

	 	Attn: Adam Chill
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        
	 
	 	 
	

	 	                                        

 

 

	 	 	 
	

	 	Purchasers:
	 
	 	 
	

	 	Whalehaven Capital Fund Limited
	

	 	Name:
	 
	 	 
	

	 	/s/ Arthur Jones
	

	 	By:Arthur Jones
	 
	 	 
	

	 	Director
	

	 	Title:
	 
	 	 
	Purchase Price:

	 	$525,000
	Principal Amount of Notes:

	 	$525,000
	No. of Warrants:

	 	143,178
	 
	 	 
	Residence:

	 	                                        
	 
	 	 
	Address for Notices:

	 	Whalehaven Capital Fund Limited
	

	 	PO Box HM 2257
	

	 	Hamilton HMJX, Bermuda
	 
	 	 
	

	 	with a copy to:exv10w2

 

Exhibit 10.2

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into as of this 22nd
day of August, 2005 by and among HEARUSA, INC., a corporation organized under the laws of Delaware
(the “Company”), and the persons identified as Purchasers pursuant to that certain Purchase
Agreement of even date herewith by and among the Company and such Purchasers (the “Purchase
Agreement”).

     The parties hereby agree as follows:

     1. Definitions.

          Capitalized terms used herein but not otherwise defined shall have the meaning ascribed
thereto in the Purchase Agreement and/or the Warrants or Notes issued pursuant to the Purchase
Agreement. As used in this Agreement, the following terms shall have the following meanings:

          “Common Stock” shall mean the Company’s Common Stock $0.10 per share.

          “Filing Date” shall mean the date which is thirty (30) days following the Closing.

          “Prospectus” shall mean the prospectus included in any Registration Statement, as
amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by such Registration Statement and by all other
amendments and supplements to the prospectus, including post-effective amendments and all material
incorporated by reference in such prospectus.

          “Purchasers” shall mean the purchasers identified in the Purchase Agreement and any
subsequent holder of any Warrants or Registrable Securities as a result of a transfer of such
securities.

          “Register,” “registered” and “registration” refer to a registration
made by preparing and filing a registration statement or similar document in compliance with the
1933 Act (as defined below), and the declaration or ordering of effectiveness of such registration
statement or document.

          “Registrable Securities” shall mean the shares of Common Stock issued or issuable upon
the exercise of the Warrants.

          “Registration Statement” shall mean any registration statement of the Company filed
under the 1933 Act that covers the resale of any of the Registrable Securities pursuant to the
provisions of this Agreement, amendments and supplements to such Registration Statement, including
post-effective amendments, all exhibits and all material incorporated by reference in such
Registration Statement.

          “SEC” means the U.S. Securities and Exchange Commission.

          “1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

 

 

          “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     2. Registration.

               (a) Registration Statement. On or prior to the Filing Date, the Company shall prepare
and file with the SEC one Registration Statement on Form S-3 (or, if Form S-3 is not then available
to the Company, on such form of registration statement as is then available to effect a
registration for resale of the Registrable Securities) covering the resale of the Registrable
Securities in an amount equal to the number of shares of Common Stock necessary to permit the
exercise in full of the Warrants (without regard to any restrictions on beneficial ownership).
Such Registration Statement also shall cover, to the extent allowable under the 1933 Act and the
rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares
of Common Stock resulting from stock splits, stock dividends or similar transactions with respect
to the Registrable Securities. No securities shall be included in the Registration Statement
without the consent of the Purchasers other than the Registrable Securities.

               (b) Expenses. The Company will pay all of the Company’s expenses associated with each
registration, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer
managers or similar securities industry professionals.

               (c) Effectiveness.

               (i) The Company shall use its best efforts to have each Registration Statement declared
effective as soon as possible after filing. If (A) the Company does not file the Registration
Statement on or before the Filing Date, subject to an Allowed Delay as provided in subparagraph
(ii) below, (B) the Registration Statement covering Registrable Securities is not declared
effective by the SEC within 180 days following the Closing (or within 90 days of the Closing in the
event the SEC does not review the Registration Statement) (each of the foregoing deadlines, a
“Registration Date”), (C) the Company fails to file with the SEC a request for acceleration within
5 business days of the date that the Company is notified by the SEC that the Registration Statement
will not be “reviewed” or is not subject to further comment, or (D) after a Registration Statement
has been declared effective by the SEC, sales cannot be made pursuant to such Registration
Statement for any reason (including without limitation by reason of a stop order, or the Company’s
failure to update the Registration Statement) but except as excused pursuant to subparagraph (ii)
below, (X) for more than 30 days in any period of 365 consecutive days, if the Company suspends
effectiveness of the registration due to a development that, in the good faith discretion of the
Company’s Board of Directors, makes it appropriate to suspend or renders the Company unable to
comply with SEC requirements, or (Y) for more than 60 days in any period of 365 consecutive days
for any reason, then the Company will make pro-rata payments to the Purchaser as liquidated damages
and not as a penalty, in an amount equal to 1% of the sum of the aggregate principal amount then
outstanding under the Notes for each month (or portion thereof) following the Registration Date
during which any of the events described in (A), (B), (C) or (D) above occurs and is continuing
(the “Blackout Period”). Each such payment shall be due and payable within five (5) days of the
end of each month (or ending portion thereof) of the Blackout Period until the termination of the
Blackout Period. The Blackout Period shall terminate upon the happening of the event which, had it
occurred, would not have triggered a Blackout Period.

-2-

 

               (ii) For not more than ten (10) consecutive trading days or for a total of not more than
thirty (30) trading days in any consecutive twelve (12) month period, the Company may delay the
disclosure of material non-public information concerning the Company, by not filing, terminating or
suspending effectiveness of any registration contemplated by this Section, the disclosure of which
at the time is not, in the good faith opinion of the Company, in the best interests of the Company
(an “Allowed Delay”); provided, that the Company shall promptly (a) notify the Purchasers in
writing of the existence of (but in no event, without the prior written consent of a Purchaser,
shall the Company disclose to such Purchaser any of the facts or circumstances regarding) material
non-public information giving rise to an Allowed Delay, and (b) advise the Purchasers in writing to
cease all sales under the Registration Statement until the end of the Allowed Delay. No payments
under subparagraph (c)(i) shall be required in the event and for the duration of an Allowed Delay.

               (d) Underwritten Offering. If any offering pursuant to a Registration Statement
pursuant to Section 2(a) hereof involves an underwritten offering, the Company shall have the right
to select an investment banker and manager to administer the offering, which investment banker or
manager shall be reasonably satisfactory to the Purchasers.

     3. Company Obligations. The Company will use its best efforts to effect the
registration of the Registrable Securities in accordance with the terms hereof, and pursuant
thereto the Company will, as expeditiously as possible:

               (a) use its best efforts to cause such Registration Statement to become effective and to
remain continuously effective for a period (the “Registration Period”) that will terminate upon the
third anniversary of the Closing.

               (b) prepare and file with the SEC such amendments and post-effective amendments to the
Registration Statement and the Prospectus as may be necessary to keep the Registration Statement
effective for the period specified in Section 3(a) and to comply with the provisions of the 1933
Act and the 1934 Act with respect to the distribution of all Registrable Securities;

               (c) permit counsel designated by the Purchasers to review each Registration Statement and all
amendments and supplements thereto no fewer than five (5) business days prior to their filing with
the SEC and not file any document to which such counsel reasonably objects;

               (d) furnish to the Purchasers and their legal counsel (i) promptly after the same is prepared
and publicly distributed, filed with the SEC, or received by the Company, one copy of any
Registration Statement and any amendment thereto, each preliminary prospectus and Prospectus and
each amendment or supplement thereto, and each letter written by or on behalf of the Company to the
SEC or the staff of the SEC, and each item of correspondence from the SEC or the staff of the SEC,
in each case relating to such Registration Statement (other than any portion of any thereof which
contains information for which the Company has sought confidential treatment), and (ii) such number
of copies of a Prospectus, including a preliminary prospectus, and all amendments and supplements
thereto and such other documents as each Purchaser may reasonably request in order to facilitate
the disposition of the Registrable Securities owned by such Purchaser;

-3-

 

               (e) in the event the Company selects an underwriter for the offering, the Company shall enter
into and perform its reasonable obligations under an underwriting agreement, in usual and customary
form, including, without limitation, customary indemnification and contribution obligations, with
the underwriter of such offering;

               (f) if required by the underwriter, or if any Purchaser is described in the Registration
Statement as an underwriter, the Company shall furnish, on the effective date of the Registration
Statement, on the date that Registrable Securities are delivered to an underwriter, if any, for
sale in connection with the Registration Statement and at periodic intervals thereafter from time
to time on request, (i) an opinion, dated as of such date, from legal counsel representing the
Company for purposes of such Registration Statement, in form, scope and substance as is customarily
given in an underwritten public offering, addressed to the underwriter and any such Purchaser and
(ii) a letter, dated such date, from the Company’s independent certified public accountants in form
and substance as is customarily given by independent certified public accountants to underwriters
in an underwritten public offering, addressed to the underwriter and any such Purchaser;

               (g) make effort to prevent the issuance of any stop order or other suspension of effectiveness
and, if such order is issued, to obtain the withdrawal of any such order at the earliest possible
moment;

               (h) furnish to each Purchaser at least five copies of the Registration Statement and any
post-effective amendment thereto, including financial statements and schedules by air mail or
reputable courier within three (3) business days of the effective date thereof;

               (i) prior to any public offering of Registrable Securities use its best efforts to register or
qualify or cooperate with the Purchasers and their counsel in connection with the registration or
qualification of such Registrable Securities for offer and sale under the securities or blue sky
laws of such jurisdictions requested by the Purchaser and do any and all other reasonable acts or
things necessary or advisable to enable the distribution in such jurisdictions of the Registrable
Securities covered by the Registration Statement;

               (j) cause all Registrable Securities covered by a Registration Statement to be listed on each
securities exchange, interdealer quotation system or other market on which similar securities
issued by the Company are then listed;

               (k) immediately notify the Purchasers, at any time when a Prospectus relating to the
Registrable Securities is required to be delivered under the 1933 Act, upon discovery that, or upon
the happening of any event as a result of which, the Prospectus included in such Registration
Statement, as then in effect, includes an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing, and at the request of any such holder,
promptly prepare and furnish to such holder a reasonable number of copies of a supplement to or an
amendment of such Prospectus as may be necessary so that, as thereafter delivered to the purchasers
of such Registrable Securities such Prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then existing; and

-4-

 

               (l) otherwise use its best efforts to comply with all applicable rules and regulations of the
SEC under the 1933 Act and the 1934 Act, take such other actions as may be reasonably necessary to
facilitate the registration of the Registrable Securities hereunder; and make available to its
security holders, as soon as reasonably practicable, but not later than the Availability Date (as
defined below), an earnings statement covering a period of at least twelve months, beginning after
the effective date of each Registration Statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the 1933 Act (for the purpose of this subsection 3(l), “Availability
Date” means the 45th day following the end of the fourth fiscal quarter that includes the effective
date of such Registration Statement, except that, if such fourth fiscal quarter is the last quarter
of the Company’s fiscal year, “Availability Date” means the 90th day after the end of such fourth
fiscal quarter).

     4. Due Diligence Review; Information. The Company shall make available, during
normal business hours, for inspection and review by the Purchasers who may be deemed an
underwriter, advisors to and representatives of such Purchasers (who may or may not be affiliated
with the Purchasers and who are reasonably acceptable to the Company), and any underwriter
participating in any disposition of Common Stock on behalf of the Purchasers pursuant to the
Registration Statement or amendments or supplements thereto or any blue sky, NASD or other filing,
all financial and other records, all SEC Documents and other filings with the SEC, and all other
corporate documents and properties of the Company as may be reasonably necessary for the purpose of
establishing a due diligence defense under applicable securities laws and such other reasonable
purposes, and cause the Company’s officers, directors and employees, within a reasonable time
period, to supply all such information reasonably requested by such Purchasers or any such
representative, advisor or underwriter in connection with such Registration Statement (including,
without limitation, in response to all questions and other inquiries reasonably made or submitted
by any of them), prior to and from time to time after the filing and effectiveness of the
Registration Statement for the sole purpose of enabling such Purchasers and such representatives,
advisors and underwriters and their respective accountants and attorneys to conduct initial and
ongoing due diligence with respect to the Company and the accuracy of the Registration Statement.

          The Company shall not disclose material nonpublic information to the Purchasers, or to
advisors to or representatives of the Purchasers, unless prior to disclosure of such information
the Company identifies such information as being material nonpublic information and provides the
Purchasers, such advisors and representatives with the opportunity to accept or refuse to accept
such material nonpublic information for review. The Company may, as a condition to disclosing any
material nonpublic information hereunder, require the Purchasers’ advisors and representatives to
enter into a confidentiality agreement (including an agreement with such advisors and
representatives prohibiting them from trading in Common Stock during such period of time as they
are in possession of material nonpublic information) in form reasonably satisfactory to the Company
and the Purchasers. Nothing herein shall require the Company to disclose material nonpublic
information to the Purchasers or their advisors or representatives.

     5. Obligations of the Purchasers.

               (a) Each Purchaser shall furnish in writing to the Company such information regarding itself,
the Registrable Securities held by it and the intended method of disposition of the Registrable
Securities held by it, as shall be reasonably required to effect the registration of such
Registrable Securities and shall execute such documents in connection with such registration as the

-5-

 

Company may reasonably request. At least ten (10) days prior to the first anticipated filing
date of any Registration Statement, the Company shall notify each Purchaser of the information the
Company requires from such Purchaser if such Purchaser elects to have any of the Registrable
Securities included in the Registration Statement.

               (b) Each Purchaser, by its acceptance of the Registrable Securities agrees to cooperate with
the Company as reasonably requested by the Company in connection with the preparation and filing of
a Registration Statement hereunder, unless such Purchaser has notified the Company in writing of
its election to exclude all of its Registrable Securities from the Registration Statement. Each
Purchaser agrees to comply with the applicable prospectus delivery requirements under the 1933 Act
in connection with any resales of Registrable Securities pursuant to the Registration Statement.

               (c) In the event the Company determines to engage the services of an underwriter which
engagement is reasonably acceptable to the Purchasers, each Purchaser agrees to enter into and
perform its obligations under an underwriting agreement, in usual and customary form, including,
without limitation, customary indemnification and contribution obligations, with the managing
underwriter of such offering and take such other actions as are reasonably required in order to
expedite or facilitate the dispositions of the Registrable Securities.

               (d) Each Purchaser agrees that, upon receipt of any notice from the Company of the happening
of any event rendering a Registration Statement no longer effective, such Purchaser will
immediately discontinue disposition of Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until the Purchaser’s receipt of the copies of the
supplemented or amended prospectus filed with the SEC and declared effective and, if so directed by
the Company, the Purchaser shall deliver to the Company (at the expense of the Company) or destroy
all copies in the Purchaser’s possession of the prospectus covering the Registrable Securities
current at the time of receipt of such notice.

               (e) No Purchaser may participate in any third party underwritten registration hereunder unless
it (i) agrees to sell the Registrable Securities on the basis provided in any underwriting
arrangements in usual and customary form entered into by the Company, (ii) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements, and (iii) agrees to pay its
pro rata share of all underwriting discounts and commissions and any expenses in excess of those
payable by the Company pursuant to the terms of this Agreement.

     6. Indemnification.

               (a) Indemnification by Company. The Company agrees to indemnify and hold harmless, to
the fullest extent permitted by law, the Purchasers, each of their officers, directors, partners
and employees and each person who controls the Purchasers (within the meaning of the 1933 Act)
against all losses, claims, damages, liabilities, costs (including, without limitation, reasonable
attorney’s fees) and expenses imposed on such person caused by (i) any untrue or alleged untrue
statement of a material fact contained in any Registration Statement, Prospectus or any preliminary
prospectus or any amendment or supplement thereto or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, except insofar as the same are based upon any information

-6-

 

furnished in writing to the Company by such Purchasers, expressly for use therein, or (ii) any
violation by the Company of any federal, state or common law, rule or regulation applicable to the
Company in connection with any Registration Statement, Prospectus or any preliminary prospectus, or
any amendment or supplement thereto, and shall reimburse in accordance with subparagraph (c) below,
each of the foregoing persons for any legal and any other expenses reasonably incurred in
connection with investigating or defending any such claims. The foregoing is subject to the
condition that, insofar as the foregoing indemnities relate to any untrue statement, alleged untrue
statement, omission or alleged omission made in any preliminary prospectus or Prospectus that is
eliminated or remedied in any Prospectus or amendment or supplement thereto, the above indemnity
obligations of the Company shall not inure to the benefit of any indemnified party if a copy of
such corrected Prospectus or amendment or supplement thereto had been provided to such indemnified
party and was not sent or given by such indemnified party at or prior to the time such action was
required of such indemnified party by the 1933 Act and if delivery of such Prospectus or amendment
or supplement thereto would have eliminated (or been a sufficient defense to) any liability of such
indemnified party with respect to such statement or omission. Indemnity under this Section 5(a)
shall remain in full force and effect regardless of any investigation made by or on behalf of any
indemnified party and shall survive the permitted transfer of the Registrable Securities.

               (b) Indemnification by Holder. In connection with any registration pursuant to the
terms of this Agreement, each Purchaser will furnish to the Company in writing such information as
the Company reasonably requests concerning the holders of Registrable Securities or the proposed
manner of distribution for use in connection with any Registration Statement or Prospectus and
agrees, severally but not jointly, to indemnify and hold harmless, to the fullest extent permitted
by law, the Company, its directors, officers, employees, stockholders and each person who controls
the Company (within the meaning of the 1933 Act) against any losses, claims, damages, liabilities
and expense (including reasonable attorney’s fees) resulting from any untrue statement of a
material fact or any omission of a material fact required to be stated in the Registration
Statement or Prospectus or preliminary prospectus or amendment or supplement thereto or necessary
to make the statements therein not misleading, to the extent, but only to the extent that such
untrue statement or omission is contained in any information furnished in writing by such Purchaser
to the Company specifically for inclusion in such Registration Statement or Prospectus or amendment
or supplement thereto and that such information was substantially relied upon by the Company in
preparation of the Registration Statement or Prospectus or any amendment or supplement thereto. In
no event shall the liability of a Purchaser be greater in amount than the dollar amount of the
proceeds (net of all expenses paid by such Purchaser and the amount of any damages such holder has
otherwise been required to pay by reason of such untrue statement or omission) received by such
Purchaser upon the sale of the Registrable Securities included in the Registration Statement giving
rise to such indemnification obligation.

               (c) Conduct of Indemnification Proceedings. Any person entitled to indemnification
hereunder shall (i) give prompt notice to the indemnifying party of any claim with respect to which
it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such
claim with counsel reasonably satisfactory to the indemnified party; provided that any person
entitled to indemnification hereunder shall have the right to employ separate counsel and to
participate in the defense of such claim, but the fees and expenses of such counsel shall be at the
expense of such person unless (a) the indemnifying party has agreed to pay such fees or expenses,
or (b) the indemnifying party shall have failed to assume the defense of such claim and employ
counsel reasonably satisfactory to such person or (c) in the reasonable judgment of any such
person, based

-7-

 

upon written advice of its counsel, a conflict of interest exists between such person and the
indemnifying party with respect to such claims (in which case, if the person notifies the
indemnifying party in writing that such person elects to employ separate counsel at the expense of
the indemnifying party, the indemnifying party shall not have the right to assume the defense of
such claim on behalf of such person); and provided, further, that the failure of any indemnified
party to give notice as provided herein shall not relieve the indemnifying party of its obligations
hereunder, except to the extent that such failure to give notice shall materially adversely affect
the indemnifying party in the defense of any such claim or litigation. It is understood that the
indemnifying party shall not, in connection with any proceeding in the same jurisdiction, be liable
for fees or expenses of more than one separate firm of attorneys at any time for all such
indemnified parties. No indemnifying party will, except with the consent of the indemnified party,
consent to entry of any judgment or enter into any settlement that does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a
release from all liability in respect of such claim or litigation.

               (d) Contribution. If for any reason the indemnification provided for in the preceding
paragraphs (a) and (b) is unavailable to an indemnified party or insufficient to hold it harmless,
other than as expressly specified therein, then the indemnifying party shall contribute to the
amount paid or payable by the indemnified party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative fault of the indemnified
party and the indemnifying party, as well as any other relevant equitable considerations. No
person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933 Act
shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation.
In no event shall the contribution obligation of a holder of Registrable Securities be greater in
amount than the dollar amount of the proceeds (net of all expenses paid by such holder and the
amount of any damages such holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission) received by it upon the sale of the
Registrable Securities giving rise to such contribution obligation.

     7. Miscellaneous.

               (a) Amendments and Waivers. This Agreement may be amended only by a writing signed by
the parties hereto. The Company may take any action herein prohibited, or omit to perform any act
herein required to be performed by it, only if the Company shall have obtained the written consent
to such amendment, action or omission to act, of the Purchasers affected by such amendment, action
or omission to act.

               (b) Notices. All notices and other communications provided for or permitted hereunder
shall be made as set forth in Section 9.4 of the Purchase Agreement.

               (c) Assignments and Transfers by Purchasers. This Agreement and all the rights and
obligations of any Purchaser hereunder may be assigned or transferred to any transferee or assignee
of the Warrants or Registrable Securities as may be permitted under the Purchase Agreement. A
Purchaser may make such assignment or transfer to any transferee or assignee of any Warrant or
Registrable Securities provided that (i) such transfer is made expressly subject to this
Agreement and the transferee agrees in writing to be bound by the terms and conditions hereof, and
(ii) the Company is provided with written notice of such assignment.

-8-

 

               (d) Assignments and Transfers by the Company. This Agreement may not be assigned by
the Company without the prior written consent of the Purchasers, but after notice duly given, the
Company shall assign its rights and delegate its duties hereunder to any successor-in-interest
corporation, and such successor-in-interest shall assume such rights and duties, in the event of a
merger or consolidation of the Company with or into another corporation or the sale of all or
substantially all of the Company’s assets (and it shall be a condition to any such merger,
consolidation or sale that such successor-in-interest assume in writing all obligations hereunder).

               (e) Benefits of the Agreement. The terms and conditions of this Agreement shall inure
to the benefit of and be binding upon the respective permitted successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement.

               (f) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. This Agreement may be executed by facsimile.

               (g) Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

               (h) Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and the
balance of this Agreement shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms to the fullest extent permitted by law.

               (i) Further Assurances. The parties shall execute and deliver all such further
instruments and documents and take all such other actions as may reasonably be required to carry
out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein
contained.

               (j) Entire Agreement. This Agreement, together with the Purchase Agreement, Notes and
Warrants and documents contemplated thereby, is intended by the parties as a final expression of
their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. This
Agreement, together with the Purchase Agreement, Notes and Warrants and documents contemplated
thereby, supersedes all prior agreements and understandings between the parties with respect to
such subject matter.

               (k) Applicable Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York without regard to principles of conflicts of law.

[Signature Pages Follow]

-9-

 

     IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the
date first written above.

THE COMPANY:

HEARUSA, INC.

By:  /s/ Stephen J. Hansbrough

Name: Stephen J. Hansbrough

Title: President and CEO

-10-

 

THE PURCHASER:

C.E. Unterberg, Towbin Capital Partners I, L.P.

Name

By: /s/ Andrew Arno

Name: Andrew Arno

Title: Managing Member of the General Partner

HearUSA Registration Rights Agreement/279761

-11-

 

THE PURCHASER:

Kevin Casey

Name

By: /s/ Kevin Casey

Name:

Title:

HearUSA Registration Rights Agreement/279761

-12-

 

THE PURCHASER:

Castle Creek Technology Partners LLC

Name

By: /s/ Stephen D. Friend

Name: Stephen B. Friend

Title: Managing Director of the Investment Manager

HearUSA Registration Rights Agreement/279761

-13-

 

THE PURCHASER:

Cordillera Fund, L.P.

Name

By: /s/ James P. Andrew

Name: James P. Andrew

Title: Co-CEO of Andrew Carter Capital, Inc.

         General Partner of ACCF GenPar, L.P.

         General Partner of the Cordillera Fund, L.P.

HearUSA Registration Rights Agreement/279761

-14-

 

THE PURCHASER:

Graham Partners LP

Name

By: /s/ Harold Berry

Name: Harold Berry

Title: Portfolio Manager

HearUSA Registration Rights Agreement/279761

-15-

 

THE PURCHASER:

/s/ William Kane Mahon

Name

By: __________________

Name:

Title:

HearUSA Registration Rights Agreement/279761

-16-

 

THE PURCHASER:

MidSouth Investor Fund LP

Name

By: /s/ Lyman O. Heidtke

Name: Lyman O. Heidtke

Title: General Partner

HearUSA Registration Rights Agreement/279761

-17-

 

THE PURCHASER:

Nite Capital LP

Name

By: /s/ Keith A. Goodman

Name: Keith A. Goodman

Title: Manager of the General Partner

HearUSA Registration Rights Agreement/279761

-18-

 

THE PURCHASER:

Richard S. Press

Name

By: /s/ Richard S. Press

Name:

Title:

HearUSA Registration Rights Agreement/279761

-19-

 

THE PURCHASER:

Edmund H. Shea

Name

By: /s/ Edmund H. Shea

Name:

Title:

HearUSA Registration Rights Agreement/279761

-20-

 

THE PURCHASER:

Smithfield Fiduciary LLC

Name

By: /s/ Scott M. Wallace

Name: Scott M. Wallace

Title: Authorized Signatory

HearUSA Registration Rights Agreement/279761

-21-

 

THE PURCHASER:

Straus Partners L.P.

Name

By: /s/ Melville Straus

Name: Melville Straus

Title: Managing Principal

HearUSA Registration Rights Agreement/279761

-22-

 

THE PURCHASER:

Straus-GEPT Partners, L.P.

Name

By: /s/ Melville Straus

Name: Melville Straus

Title: Managing Principal

HearUSA Registration Rights Agreement/279761

-23-

 

THE PURCHASER:

Whalehaven Capital Fund Limited

Name

By: /s/ unintelligible

Name:

Title:

HearUSA Registration Rights Agreement/279761

-24-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]