Amendment No. 1 to Amended and Restated Security Agreement

EXHIBIT 10.21

Amendment No. 1 to Amended and Restated Security Agreement

     This Amendment No. 1 to Amended and Restated Security Agreement (this “Amendment”) is entered into as of the Closing Date (as defined in the Credit Agreement defined below), by and between HearUSA, Inc. (formerly HEARx, LTD.), a Delaware corporation (the “Debtor”), and SIEMENS HEARING INSTRUMENTS, INC., a Delaware corporation (the “Secured Party”).

Preliminary Statements

     A. The Debtor and the Secured Party are parties to a certain Amended and Restated Security Agreement, dated as of February 10, 2006 (the “Security Agreement”). All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Security Agreement.

     B. The Debtor and the Secured Party have entered into a Second Amended and Restated Credit Agreement dated as of December 30, 2006 (as amended, supplemented or restated from time to time, “Credit Agreement”).

     C. It is a condition to the effectiveness of the Credit Agreement that the Debtor and the Secured Party enter into this Amendment.

     NOW, THEREFORE, in consideration of the benefits to the Debtor, the receipt and sufficiency of which are hereby acknowledged, the Debtor and the Secured Party hereby agree as follows:

     SECTION 1. AMENDMENTS.

     1.01 The definition of “Credit Agreement,” as such term is used in the Security Agreement is amended to read as follows:

     “Credit Agreement” means the Second Amended and Restated Credit Agreement dated as of December 30, 2006, between the Debtor and the Secured Party, as amended, supplemented or restated from time to time.

     1.02. Schedules I, II, III and IV to the Security Agreement shall be amended and restated in their entirety to read as Schedules I, II, III and IV, respectively, attached hereto.

     SECTION 2. REPRESENTATIONS.

     In order to induce the Secured Party to execute and deliver this Amendment, the Debtor hereby represents to the Secured Party that:

     (a) This Amendment has been duly executed and delivered by the Debtor and constitutes a legal, valid and binding obligation of the Debtor enforceable in accordance

with its terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (whether enforcement is sought by proceedings in equity or at law); and

     (b) as of the date hereof the representations and warranties set forth in the Security Agreement are and shall be and remain true and correct and the Debtor is in compliance with the terms and conditions of the Security Agreement.

     SECTION 4. MISCELLANEOUS.

          4.01. Except as specifically amended herein, the Security Agreement shall continue in full force and effect in accordance with its original terms. Reference to this specific Amendment need not be made in the Security Agreement, the Credit Agreement, the Notes, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to or with respect to the Security Agreement, any reference in any of such items to the Security Agreement being sufficient to refer to the Security Agreement as amended hereby.

          4.02. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but both of which shall together constitute one and the same instrument.

          4.03. This Amendment shall be governed by, and construed and interpreted in accordance with, the law of the State of New York without regard to conflict of law principles (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law).

[SIGNATURE PAGE FOLLOWS]

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their respective duly authorized officers as of the date first above written.

		HearUSA, INC.
		By: /s/ Stephen J. Hansbrough
		Name: Stephen J. Hansbrough
		Title: President and CEO
		SIEMENS HEARING INSTRUMENTS, INC.
		By: /s/ William J. Lankenau
		Name: William J. Lankenau
		Title: President and CEO

Signature Page to Amendment No. 1 to
Amended and Restated Security Agreement

SCHEDULE I

CHATTEL PAPER AND INSTRUMENTS

[TO BE UPDATED]

Notes Payable
Name		Principal Balance
HearUSA, Inc.
AHS/Charles Stone		$	57,180.74
AHS/Jerri McMahon			19,060.20
Professional Hearing Care			1,088,888.00
Professional Hearing Aid Services			182,811.00
Lonsway Hearing Centers			328,125.00
Meadowbrook Hearing Aid Center			112,500.00
$5.5 million Notes			5,060,000.00
$7.5 million Notes			7,500,000.00

SCHEDULE II

COMMERCIAL TORT CLAIMS

None

SCHEDULE III

DEBTOR AND COLLATERAL DETAILS

[TO BE UPDATED]

1. Inventory & Equipment Locations:

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

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

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

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

	a.		Legal Name: HearUSA, Inc.
	b.		State of Incorporation: Delaware
	c.		Principal Place of Business: Southeast Florida, West Coast of Florida, New York City metropolitan area, New Jersey and Southern California
	d.		Chief Executive Office: 1250 Northpoint Parkway, West Palm Beach, Florida 33407

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

SCHEDULE IV

PATENTS, COPYRIGHTS AND TRADEMARKS

[TO BE UPDATED]

1.

Registered Trademarks:

	a.		“HEARx” design plus words, letters and/or numbers, registered January 5, 1988, registration number 1471748.
	b.		“Your Prescription for Better Hearing” typed drawing, registered September 6, 1988, registration number 15032594.

2.

Trademarks in Registration:

	a.		“InTouch” design plus words, letters and/or numbers, published in Official Gazette April 17, 2001, serial number 76/107038.
	b.		“International Hearing Services” words, letters or numbers in typed form, filed March 13, 2001, serial number 76/224010.
	c.		“EAR & WAVE” design, registered September 20, 2000, registration number TMA533,047
	d.		“EAR & WAVE” design, registered June 6, 2000, registration number 2,354,656.
	e.		“HEARUSA” and design, registered March 28, 2000, registration number 2,336,648.
	f.		“Helix”, registered November 7, 2000, registration number TMA536,819.
	g.		“Helix Hearing Care Centre”, registered September 10, 2001, registration number TMA550,544.
	h.		“Helix Hearing Care Centre” and design, registered September 28, 2001, registration number TMA551,743.
	i.		“Prestige”, registered June 22, 2004, registration number 78/310,914.
	j.		“It’s Clear We Care”, registered February 1, 2005, registration number 78/174,387.

3.

Common Law Trademarks, Copyrights and other Intellectual Property:

	a.		“HELP Class” Name and design
	b.		Content of HELP Class Handbook & Classroom Materials
	c.		Programming and Content of “Center Management System” or “CMS”
	d.		Programming and Content of “Customer Contact Plan”
	e.		Programming and Content of Telemarketing Scripts, Customer Service Screens, and Call Management Flowcharts
	f.		All creative content of advertisements, direct mail, brochures and public communications
	g.		Content of JCAHO-compliant operating policies and procedures
	h.		Content of HEARx Practice Guidelines for Clinical Services
	i.		Center Operating Manual & Management Policies
	j.		Sales & Customer Service training programs
	k.		New Employee Training Manuals