Document:

exv10w1

 

Exhibit 10.1

FIRST AMENDMENT TO SENIOR MANAGEMENT AGREEMENT

     THIS FIRST AMENDMENT TO SENIOR MANAGEMENT AGREEMENT (this “Amendment”), dated as of October
31, 2006, is made and entered into by and between IDLEAIRE TECHNOLOGIES CORPORATION, a Delaware
corporation, (hereinafter referred to as the “Company”), and DAVID EVERHART, (hereinafter referred
to as “Executive”).

W I T N E S S E T H

     WHEREAS, Company and Executive entered into a Senior Management Agreement (the “Agreement”)
effective June 17, 2002; and

     WHEREAS, pursuant to paragraph 7(g) of the Agreement, the Agreement may be amended by a
written instrument executed by the undersigned parties.

     WHEREAS, the parties desire to amend the Agreement to reflect certain changes to the
Agreement.

     NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Company
and Executive agree as follows:

	 	1.	 	Section 2(e) of the Agreement is hereby amended to read in its entirety as
follows:

(e) Separation. Executive’s employment by the Company during the
Employment Period will continue until: (i) Executive’s resignation at any time
which includes resignation with Good Reason as hereinafter defined and resignation
without Good Reason, (ii) until Executive’s disability or death, or (iii) until the
Board terminates Executive’s Employment at any time during the Employment Period.
If the Employment Period is terminated by Executive or by the Board without Cause,
then the termination will be effective thirty (30) days after the date of delivery
of written notice of termination. If the Employment Period is terminated by the
Board with Cause, termination will be effective as of the date of notice of
termination. If the Employment Period is terminated by the Board with Cause, then
the Executive shall be entitled to receive his Annual Base Salary, bonuses and his
fringe benefits only through the effective date of termination. If the Employment
Period is terminated by the Board for any other reason or if Executive resigns with
Good Reason, then the Executive shall be entitled (i) to receive his Annual Base
Salary for twelve (12) months from the effective date of termination (such
payments, the “Severance Payment”) which shall be payable over time in accordance
with normal payroll practices, and (ii) medical insurance, if any, for eighteen
(18) months from the effective date of termination, and (iii) disability insurance
premiums until the earlier of the effective date of termination or until such time
as Executive has qualified for disability insurance benefits at which time Company
may cease to pay insurance premiums for disability insurance for Executive.

 

     2. The Agreement, as amended hereby, is in all respects ratified, approved and confirmed.

     3. This Amendment may be executed in any number of counterparts, all of which together make
and shall constitute one and the same instrument. Neither party may execute this Amendment by
signing any such counterpart.

     4. This Amendment shall in all respects be governed by, and construed in accordance with the
laws of the state of Tennessee, including all matters of construction, validity and performance.

     IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this
Amendment as of the date set forth above.

	 	 	 	 	 
	 	IDLEAIRE TECHNOLOGIES CORPORATION

 	 
	 	By   /s/ Michael C. Crabtree
 	 
	 	 	 	Michael C. Crabtree 	 
	 	 	 	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	/s/ David Everhart
 	 
	 	David Everhart 	 
	 	 	 
	 

2exv10w1

 

Exhibit 10.1

AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     THIS AGREEMENT is entered into as of August 25, 2006 by and between HearUSA, Inc., having its
principal office at 1250 Northpoint Parkway, West Palm Beach, Florida 33407 (“Borrower”) and
Siemens Hearing Instruments, Inc., having an office at 10 Constitution Avenue, Piscataway, New
Jersey 08854 (the “Lender”) and amends that certain Amended And Restated Credit Agreement between
the parties dated as of February 10, 2006 (the “Credit Agreement”). All capitalized terms not
otherwise defined herein shall have the same meaning as set forth in the Credit Agreement.

RECITALS

     Whereas, Borrower and Lender have agreed to modify the terms of the Credit Agreement as set
forth in this Amendment To Amended And Restated Credit Agreement (“Agreement”).

     Now, therefore, in consideration of the Lender’s continued extension of credit and the
agreements contained herein, the parties agree as follows:

AGREEMENT

	 	 	 	 	 
	1.	 	MODIFICATIONS. The Credit Agreement be and hereby is modified as follows:
	 
	 	 	 	 
	 

	 	(A)
	 	Definitions.
	 
	 	 	 	 
	 

	 	(i)
	 	The following definitions are hereby added to the Credit Agreement:
	 
	 	 	 	 
	 

	 	 	 	“Tranche C-1 Loan”, “Tranche C-2 Loan,” and “Tranche C-3 Loan”
shall have the meanings specified in Section 2.03(c).
	 
	 	 	 	 
	 

	 	(ii)
	 	The definition of “Tranche C Loan” is hereby deleted, and replaced with the
following:
	 
	 	 	 	 
	 

	 	 	 	“Tranche C Loan” has the meaning specified in Section 2.01(c), and shall include the
Tranche C-1 Loan, the Tranche C-2 Loan, and the Tranche C-3 Loan.
	 
	 	 	 	 
	 

	 	(iii)
	 	The definition of “Tranche C Loan Commitment” is hereby deleted, and is replaced
with the following:
	 
	 	 	 	 
	 

	 	 	 	“Tranche C Loan Commitment” means the commitment of the Lender to make the Tranche C
Loan to the borrower on the Closing Date in the principal amount of $21,064,665.09 and the
option of the Lender to make additional Tranche C Loans to the Borrower pursuant to Section
2.01(c), all in an aggregate principal amount not to exceed $26,000,000 less any amounts
outstanding under the Tranche A Loan and Tranche B Loan.
	 
	 	 	 	 
	 

	 	(B)
	 	Section 2.03(c) is hereby deleted, and replaced by new Section 2.03(c) to read as follows:
	 
	 	 	 	 
	 

	 	 	 	(c) Repayment of Tranche C Loans. (i) Tranche C-2 Loan. Effective
on the Closing Date, the principal balance of the Tranche C-1 Loan was $6,636,130.93
(the “Tranche C-2 Loan”). On the first day of each month commencing on the first
day of March 2006 and ending on the Maturity Date (a “Tranche C Monthly Payment
Date”) the Borrower shall repay the principal balance of the Tranche C-

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	 	 	 	2 Loan, along with accrued and unpaid interest thereon as provided by Section
2.06(b), in equal amortized monthly payments each in an amount of $130,000 (each
such amount the “Fixed Monthly Tranche C Payment”). (ii) Tranche C-1 and Tranche
C-3 Loans. Effective on the Closing Date, the principal balance of the Tranche
C-1 Loan was $14,428,534.16 (the “Tranche C-1 Loan”). Effective on the Closing
Date, the principal balance of the Tranche C-3 Loan was $0 (the “Tranche C-3 Loan”).
All loans made under Tranche C until and including June 30, 2006 shall be made as
Tranche C-1 Loans and all loans made under Tranche C after June 30, 2006 shall be
Tranche C-3 Loans. On the 20th day after the last day of each Fiscal Quarter
commencing with the fourth quarter of 2006 (i.e., on January 20, 2007) and ending on
the Maturity Date (a “Tranche C Quarterly Payment Date”), subject to the deemed
payments credits as contemplated by Section 2.03(d) below, the Borrower shall pay an
amount equal to $730,000, plus accrued and unpaid interest as provided by Section
2.06(b) (each such amount, the “Required Tranche C Quarterly Payment”), which shall
be applied to the following Loans, to the extent of their outstanding balances, in
the following order: first, to the Tranche C-1 Loan, then to the Tranche C-3 Loan,
then to the Tranche C-2 Loan, then to the Tranche B Loan.
	 
	 	 	 	 
	 

	 	(C)
	 	Section 2.06(b) is hereby deleted, and replaced by new Section 2.06(b) to read as follows:
	 
	 	 	 	 
	 

	 	 	 	The parties acknowledge that interest shall accrue on the principal balance of the
Tranche C-2 Loan made on the Closing Date at the fixed rate of 7.44465% per annum,
payable monthly, in advance, in accordance with Section 2.03(c). The Tranche C-1
Loan shall accrue interest at a rate per annum equal at all times to the Prime Rate
plus 1.0% and shall be payable on the 20th day after the end of each Fiscal Quarter,
subject to the deemed payments credits as contemplated by Section 2.03(d). With
respect to each Tranche C-3 Loan, Borrower agrees that such Loans shall accrue
interest at a rate per annum equal at all times to the Prime Rate plus 1.0% from the
date deemed made until the principal amount thereof shall be paid in full; however,
such interest shall accrue and be added to the principal amount of the Tranche C-3
Loan (i.e., compounded) on each Tranche C Quarterly Payment Date
until paid in full, except that such accrued interest under Tranche C-3 Loans shall
not be compounded,
but shall instead become due and payable on each Tranche C Quarterly Payment Date,
to the extent that compounding such interest would cause the aggregate amount of all
Obligations to exceed the Tranche C Loan Commitment. Each Tranche C-3 Loan shall be
deemed to be made on the first day of the Fiscal Quarter in which such Tranche C
Loan is made.
	 
	 	 	 	 
	 

	 	(D)
	 	Section 2.05 is hereby deleted, and replaced by new Section 2.05 to read as follows:
	 
	 	 	 	 
	 

	 	 	 	Section 2.05. Mandatory Prepayment of Loans.
	 
	 	 	 	 
	 

	 	 	 	(a) The Borrower shall prepay the Loan Balance upon receipt by the Borrower or any of its
Subsidiaries of the net proceeds of any issuance of Stock or Stock Equivalents by the
Borrower or any of its Subsidiaries (other than the proceeds received by the Borrower in
connection with the exercise by any of the Borrower’s or its Subsidiaries’ employees of any
option issued pursuant to any of the Borrower’s or its Subsidiaries’ stock option plans), in
an amount equal to 25% of such net proceeds. Such prepayment shall be applied as set forth
in Section 2.05(c).

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	 	 	 	(b) The Borrower shall prepay the Loan Balance within 120 days after the last day of each
fiscal year, in an amount equal to 20% of Excess Cash Flow for such fiscal year.
	 
	 	 	 	 
	 

	 	 	 	(c) Prepayments under 2.05(a) and 2.05(b) shall be required during the existence of any
outstanding balance under, and shall be applied to, the following Loans, to the extent of
their outstanding balances, in the following order: first, to the Tranche C-3 Loan, then to
the Tranche C-2 Loan, then to the Tranche C-1 Loan, then to the Tranche B Loan.
	 
	 	 	 	 
	 

	 	(E)
	 	Section 4.12 is hereby deleted, and replaced by new Section 4.12 to read as follows:
	 
	 	 	 	 
	 

	 	 	 	Section 4.12. Acknowledgement of Outstanding Obligations.
	 
	 	 	 	 
	 

	 	 	 	The Borrower acknowledges and agrees that, as of the Closing Date, the sum of TWO
MILLION TWO HUNDRED SIXTY-FOUR THOUSAND THREE HUNDRED NINETY-SEVEN AND THIRTY-ONE
ONE-HUNDREDTHS United States Dollars ($2,264,397.31) will be due and owing under the
Tranche A Loan, and the sum of TWENTY-ONE MILLION SIXTY-FOUR THOUSAND SIX HUNDRED
SIXTY-FIVE AND NINE ONE-HUNDREDTHS United States Dollars ($21,064,665.09) will be
due and owing under the Tranche C Loan.
	 
	 	 	 	 
	 

	 	(F)
	 	Schedule I is hereby deleted, and replaced by new Schedule I attached hereto.
	 
	 	 	 	 
	2.	 	ADDITIONAL ACKNOWLEDGMENTS. Borrower acknowledges and represent that:
	 
	 	 	 	 
	 	 	(A)     The payment of $130,000 made by the Borrower to the Lender on or about February 24, 2006 for
application against those portions of the indebtedness under the Original Loan Agreement which
were ultimately rolled into the Tranche C Loan to be repaid at the rate of $130,000 per month,
shall not be credited to the Tranche C Loan, but shall instead be credited against the related
prior balance due under the Original Loan Agreement.
	 
	 	 	 	 
	 	 	(B)     The Credit Agreement and other Loan Documents, as amended hereby, are in full force and
effect without any defense, claim, counterclaim, right or claim of set-off;
	 
	 	 	 	 
	 	 	(C)     After giving effect to this Agreement, no Default or Event of Default under the Loan
Documents has occurred;
	 
	 	 	 	 
	 	 	(D)     Borrower has taken all necessary action to authorize the execution and delivery of this
Agreement; and
	 
	 	 	 	 
	 	 	(E)     This Agreement is a modification of an existing obligation and is not a novation.

3.      MISCELLANEOUS. This Agreement shall be construed in accordance with and governed by the laws of
the applicable state as originally provided in the Loan Documents, without reference to that
state’s conflicts of law principles. This Agreement and the other Loan Documents constitute the
sole agreement of the parties with respect to the subject matter thereof and supersede all oral
negotiations and prior writings with respect to the subject matter thereof. No amendment of this
Agreement, and no waiver of any one or more of the provisions hereof shall be effective unless set
forth in writing and signed by the parties hereto. The illegality, unenforceability or
inconsistency of any provision of this Agreement shall not in any way affect or impair the
legality, enforceability or consistency of the remaining provisions of this Agreement or the other
Loan Documents. This Agreement and the other Loan Documents are intended to be consistent.
However, in the event of any inconsistencies among this Agreement and any of the Loan Documents,
the terms of this Agreement, then the Credit Agreement, shall control.

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4.     COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the different
parties on separate counterparts. Each such counterpart shall be deemed an original, but all such
counterparts shall together constitute one and the same agreement.

IN WITNESS WHEREOF, the undersigned have signed and sealed this Agreement the day and year first
above written.

	 	 	 	 	 
	 	HEARUSA, INC. 

 	 
	 	BY:  	 
 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

	 	 	 	 	 
	 	SIEMENS HEARING INSTRUMENTS, INC.

 	 
	 	BY:  	 
 	 
	 	 	Name:  	  	 
	 	 	Title:  	  	 
	 

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Schedule I

ACQUISITION GUIDELINES

     This Schedule I sets forth the manner in which Lender shall advance monies under either the
Tranche B or Tranche C-3 Loans, which funds must be used by the Borrower for the acquisition or
investment by Borrower in a Subsidiary or another Person, or a division, group or individual(s)
(each, an “Acquisition Target”) either through an acquisition (of either Stock or other securities
or assets), merger or organic growth. To the extent that the Lender advances such monies, such
advances shall be calculated in accordance with the following guidelines:

          1) If an Acquisition Target purchases less than or equal to 40% of its hearing aids from
Lender or an affiliate of Lender, then Lender shall be required to make a Loan under Tranche B in
the amount calculated as set forth below. If an Acquisition Target purchases more than 40% of its
hearing aids from Lender or an affiliate of Lender, then Lender may, in its sole and absolute
discretion, choose to make a Loan under Tranche B in the amount calculated as set forth below. If
Lender makes a Loan under Tranche B, it may also, in its sole and absolute discretion, choose to
make an additional Loan under Tranche C in the amount calculated as set forth below.

          2) If Lender makes a Loan under Tranche B, the Loan will be in an amount corresponding to 1/3
of no more than 70% of the last twelve months’ trailing net revenues of the Acquisition Target. To
the extent that any funds are requested by Borrower in excess of this formula, and to the extent
that Lender determines, in its sole and absolute discretion, to make a Loan for such additional
sum, such additional sum will be made, if at all, as a Tranche C-1 Loan for those loans made on or
before June 30, 2006 and Tranche C-3 for those made after June 30, 2006.

          3) A Stand-Alone Acquisition is made when the Acquisition Target, once acquired, remains in a
separate location and has a separate “ship to” account with Siemens.

          4) A Roll-In Acquisition is made when the Acquisition Target has its assets rolled into an
existing location of Borrower and Borrower uses an already existing “ship to” account with Siemens
for such Acquisition Target.

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