Document:

Exhibit
      4.2

     

    FORM
      OF PLACEMENT AGENT WARRANT

    

     

    NEITHER
      THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
      HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
      SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      TO
      SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
      COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
      SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED
      BY SUCH SECURITIES. 

     

    [THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN, AND THE SHARES INTO WHICH
      THESE SECURITIES ARE EXERCISABLE WILL BE, ISSUED PURSUANT TO REGULATION S
      PROMULGATED UNDER THE ACT. NEITHER THESE SECURITIES NOR THE SECURITIES INTO
      WHICH THESE SECURITIES ARE EXERCISABLE MAY BE OFFERED OR SOLD WITHIN THE UNITED
      STATES OR TO, OR FOR THE ACCOUNT OF A "U.S. PERSON" (AS THAT TERM IS DEFINED
      IN
      REGULATION S) UNTIL AFTER, RESPECTIVELY, JANUARY __, 2008 OR ONE YEAR AFTER
      THE
      DATE OF EXERCISE.]

     

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THIS SECURITY NOR THE SECURITIES ISSUABLE UPON EXERCISE THEREOF IN CANADA
      BEFORE MAY __, 2007.

     

    BY
      VIRTUE
      OF THE LEGENDS ABOVE, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT
      BE
      TRADED THROUGH THE FACILITIES OF CANADIAN STOCK EXCHANGES AND THIS CERTIFICATE
      WILL NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON CANADIAN
      STOCK EXCHANGES.

     

    CAPITAL
      GOLD CORPORATION

     

    PLACEMENT
      AGENT WARRANT

     

    
      	
              Warrant
                No. 2007-___

            	
              Date
                of Original Issuance: January __,
                2007

            

    

     

    Capital
      Gold Corporation, a Delaware corporation (the “Company”),
      hereby certifies that, for value received, PAUL ENSOR or his registered assigns
      (the “Holder”),
      is
      entitled to purchase from the Company up to a total of *______* shares of common
      stock, $.0001 par value (the “Common
      Stock”),
      of
      the Company (each such share, a “Warrant
      Share”
and
      all
      such shares, the “Warrant
      Shares”)
      at an
      exercise price equal to U.S. $0.30 per share (as adjusted from time to time
      as
      provided in Section 9, the “Exercise
      Price”),
      at
      any time and from time to time from and after the date hereof and through and
      including the Eighteen Month anniversary of the issuance date hereof (the
“Expiration
      Date”),
      and
      subject to the following terms and conditions:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    This
      Warrant is issued to the Placement Agent in a private offering (“Offering”)
      pursuant to Subscription Agreements for the purchase of Units consisting of
      one
      share of Common Stock and one-quarter of a Warrant to which the Company and
      the
      original Holder are parties (the “Subscription
      Agreement”).
      

     

    Definitions.
      In
      addition to the terms defined elsewhere in this Warrant, capitalized terms
      that
      are not otherwise defined herein shall have the meanings given to such terms
      in
      the Subscription Agreement.

     

    Registration
      of Warrant.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

    Registration
      of Transfers.
      The
      Company shall register the transfer of any portion of this Warrant in the
      Warrant Register, upon surrender of this Warrant, with the Form of Assignment
      attached hereto duly completed and signed, to the Company at its address
      specified herein. Upon any such registration or transfer, a new Warrant to
      purchase Common Stock, in substantially the form of this Warrant (any such
      new
      Warrant, a “New
      Warrant”),
      evidencing the portion of this Warrant so transferred shall be issued to the
      transferee and a New Warrant evidencing the remaining portion of this Warrant
      not so transferred, if any, shall be issued to the transferring Holder. The
      acceptance of the New Warrant by the transferee thereof shall be deemed the
      acceptance by such transferee of all of the rights and obligations of a holder
      of a Warrant. Notwithstanding the foregoing, this Warrant is subject to the
      transfer restrictions set forth in the Legend at the top of this
      Warrant.

     

    Duration
      of Warrants.
      This
      Warrant shall be exercisable by the registered Holder at any time and from
      time
      to time on or after the date hereof to and including the Expiration Date. At
      5:00 p.m., New York time on the Expiration Date, the portion of this Warrant
      not
      exercised prior thereto shall be and become void and of no value. 

     

    Exercise
      of Warrant.

     

    Number
      of Shares Issuable upon Exercise.
      Subject
      to Section 10, from and after the Original Issuance Date through and including
      the Expiration Date, the Holder shall be entitled to receive, upon exercise
      of
      this Warrant in whole in accordance with the terms of subsection b or upon
      exercise of this Warrant in part in accordance with subsection c, shares of
      Common Stock, subject to adjustment pursuant to Section 9.

     

    
      
         

      

      
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    Full
      Exercise.
      This
      Warrant may be exercised in full by the Holder by delivery of an original or
      facsimile copy of the form of exercise notice attached as Exhibit A hereto
      (the “Exercise Notice ") duly executed by the Holder and surrender of the
      original Warrant to the Company at its principal office or at the office of
      its
      Warrant Agent (as provided hereinafter), accompanied by payment, in cash, wire
      transfer or by certified or official bank check payable to the order of the
      Company, in the amount obtained by multiplying the number of shares of Common
      Stock for which this Warrant is then exercisable by the Purchase Price then
      in
      effect.

     

    Cashless
      Exercise.
      Notwithstanding anything to the contrary contained in subsection (a) above,
      the
      Holder may elect to exercise this Warrant in whole or in part by receiving
      Shares equal to the value (as determined below) of this Warrant at the principal
      office of the Company together with notice of such election in which event
      the
      Company shall issue to the Holder a number of Shares computed using the
      following formula: 

     

    X
      = Y(A-B)

    A
      

    

    
      	
              Where:

            	
              X
                = 

            	
              the
                number of Shares to be issued to the Holder;

            
	 	 	 
	 	
              Y
                = 

            	
              the
                number of Shares to be exercised under this
                Warrant;

            
	 	 	 
	 	
              A
                = 

            	
              the
                current fair market value of one share of Common Stock (calculated
                as
                described below); and

            
	 	 	 
	 	
              B
                = 

            	
              the
                Purchase Price.

            

    

    

    As
      used
      herein, the current fair market value of one share of Common Stock shall mean:
      (i) if the Common Stock is listed on the Toronto Stock Exchange and is not
      listed on any other established stock exchange in the United States, or traded
      on the Nasdaq National Market or the Nasdaq SmallCap Market, the closing price
      on the Toronto Stock Exchange of the Common Stock on the trading day immediately
      prior to the day notice of exercise of this Warrant (“Notice”) is given
      converted to Dollars using the noon rate of exchange of the Federal Reserve
      Bank
      of New York on the day immediately prior to such Notice; (ii) if the Common
      Stock is listed on the Toronto Stock Exchange and also is listed on any other
      established stock exchange in the United States, including the Nasdaq National
      Market or the Nasdaq SmallCap Market, the closing sales price for such stock
      (or
      the closing bid, if no sales were reported) as quoted on such exchange or market
      on the last market trading day prior to the day of Notice, as reported by such
      exchange or market with the greatest volume of trading in Common Stock on the
      day prior to the Notice date; (iii) in the absence of such markets, if the
      Common Stock is quoted on the OTC Bulletin Board, the average of the closing
      bid
      price per share of the Common Stock for the three trading days ending on the
      last trading day prior to the day of Notice, as reported by the OTC Bulletin
      Board; and (iv) if the Common Stock is not quoted on the OTC Bulletin Board
      but
      is reported on the “Pink Sheets” published by the Pink Sheets LLC (or a similar
      organization or agency succeeding to its functions of reporting prices), the
      average of the reported closing bid price per share of the Common Stock for
      the
      three trading days ending on the last trading day prior to the day of Notice,
      as
      reported by the Pink Sheets (or such other organization or agency).

    

    
      
         

      

      
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    Partial
      Exercise.
      This
      Warrant may be exercised in part (but not for a fractional share) by surrender
      of this Warrant in the manner and at the place provided in subsections b or
      c
      except that the amount payable by the Holder on such partial exercise shall
      be
      the amount obtained by multiplying (a) the number of whole shares of Common
      Stock designated by the Holder in the Exercise Notice by (b) the Purchase
      Price then in effect. On any such partial exercise, the Company, at its expense,
      will forthwith issue and deliver to or upon the order of the Holder hereof
      a new
      Warrant of like tenor, in the name of the Holder hereof or as the Holder (upon
      payment by the Holder of any applicable transfer taxes) may request, the whole
      number of shares of Common Stock for which such Warrant may still be
      exercised.

     

    Company
      Acknowledgment.
      The
      Company will, at the time of the exercise of the Warrant, upon the request
      of
      the Holder hereof acknowledge in writing its continuing obligation to afford
      to
      the Holder any rights to which the Holder shall continue to be entitled after
      such exercise in accordance with the provisions of this Warrant. If the Holder
      shall fail to make any such request, such failure shall not affect the
      continuing obligation of the Company to afford to the Holder any such
      rights.

     

    Delivery
      of Stock Certificates, etc. on Exercise.
      The
      Company agrees that the shares of Common Stock purchased upon exercise of this
      Warrant shall be deemed to be issued to the Holder hereof as the record owner
      of
      such shares as of the close of business on the date on which this Warrant shall
      have been surrendered and payment made for such shares as aforesaid. As soon
      as
      practicable after the exercise of this Warrant in full or in part, and in any
      event within three (3) days thereafter, the Company at its expense (including
      the payment by it of any applicable issue taxes) will cause to be issued in
      the
      name of and delivered to the Holder hereof, or as the Holder (upon payment
      by
      the Holder of any applicable transfer taxes) may direct in compliance with
      applicable securities laws, a certificate or certificates for the number of
      duly
      and validly issued, fully paid and nonassessable shares of Common Stock to
      which
      the Holder shall be entitled on such exercise, together with any other stock
      or
      other securities and property (including cash, where applicable) to which the
      Holder is entitled upon such exercise. 

     

    Charges,
      Taxes and Expenses.
      Issuance and delivery of certificates for shares of Common Stock upon exercise
      of this Warrant shall be made without charge to the Holder for any issue or
      transfer tax, transfer agent fee or other incidental tax or expense in respect
      of the issuance of such certificates, all of which taxes and expenses shall
      be
      paid by the Company; provided, however, that the Company shall not be required
      to pay any tax which may be payable in respect of any transfer involved in
      the
      registration of any certificates for Warrant Shares or Warrants in a name other
      than that of the Holder. The Holder shall be responsible for all other tax
      liability that may arise as a result of holding or transferring this Warrant
      or
      receiving Warrant Shares upon exercise hereof.

    

      Replacement
        of Warrant.
        If this
        Warrant is mutilated, lost, stolen or destroyed, the Company shall issue
        or
        cause to be issued in exchange and substitution for and upon cancellation
        hereof, or in lieu of and substitution for this Warrant, a New Warrant, but
        only
        upon receipt of evidence reasonably satisfactory to the Company of such loss,
        theft or destruction and customary and reasonable indemnity, if requested.
        Applicants for a New Warrant under such circumstances shall also comply with
        such other reasonable regulations and procedures and pay such other reasonable
        third-party costs as the Company may prescribe. If a New Warrant is requested
        as
        a result of a mutilation of this Warrant, then the Holder shall deliver such
        mutilated Warrant to the Company as a condition precedent to the Company’s
        obligation to issue the New Warrant.

       

    

    
      
         

      

      
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    Reservation
      of Warrant Shares.
      The
      Company covenants that it will at all times reserve and keep available out
      of
      the aggregate of its authorized but unissued and otherwise unreserved Common
      Stock, solely for the purpose of enabling it to issue Warrant Shares upon
      exercise of this Warrant as herein provided, the number of Warrant Shares which
      are then issuable and deliverable upon the exercise of this entire Warrant,
      free
      from preemptive rights or any other contingent purchase rights of persons other
      than the Holder (taking into account the adjustments and restrictions of Section
      9). The Company covenants that all Warrant Shares so issuable and deliverable
      shall, upon issuance and the payment of the applicable Exercise Price in
      accordance with the terms hereof, be duly and validly authorized, issued and
      fully paid and nonassessable.

     

    Certain
      Adjustments.
      The
      Exercise Price and number of Warrant Shares issuable upon exercise of this
      Warrant are subject to adjustment from time to time as set forth in this Section
      9.

     

    Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding, (i) pays a stock
      dividend on its Common Stock or otherwise makes a distribution on any class
      of
      capital stock that is payable in shares of Common Stock, (ii) subdivides
      outstanding shares of Common Stock into a larger number of shares, or (iii)
      combines outstanding shares of Common Stock into a smaller number of shares,
      then in each such case the Exercise Price shall be multiplied by a fraction
      of
      which the numerator shall be the number of shares of Common Stock outstanding
      immediately before such event and of which the denominator shall be the number
      of shares of Common Stock outstanding immediately after such event. Any
      adjustment made pursuant to clause (i) of this paragraph shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such dividend or distribution, and any adjustment pursuant to clause
      (ii) or (iii) of this paragraph shall become effective immediately after the
      effective date of such subdivision or combination. If any event requiring an
      adjustment under this paragraph occurs during the period that an Exercise Price
      is calculated hereunder, then the calculation of such Exercise Price shall
      be
      adjusted appropriately to reflect such event.

     

    Pro
      Rata Distributions.
      If the
      Company, at any time while this Warrant is outstanding, distributes to all
      holders of Common Stock (i) evidences of its indebtedness, (ii) any security
      (other than a distribution of Common Stock covered by the preceding paragraph),
      (iii) rights or warrants to subscribe for or purchase any security, or (iv)
      any
      other asset (in each case, “Distributed
      Property”),
      then,
      at the request of any Holder delivered with the Holder’s exercise notice upon
      exercise of the Warrant, such Holder shall be entitled to receive, in addition
      to the Warrant Shares otherwise issuable upon such conversion, the Distributed
      Property that such Holder would have been entitled to receive in respect of
      such
      number of Warrant Shares had the Holder exercised the Warrant immediately prior
      to the record date fixed for determination of stockholders entitled to receive
      such distribution. 

     

    
      
         

      

      
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    Fundamental
      Transactions.
      If, at
      any time while this Warrant is outstanding, (1) the Company effects any merger
      or consolidation of the Company with or into another Person, (2) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (3) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, or (4) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental
      Transaction”),
      then
      the Holder shall have the right thereafter to receive, upon exercise of this
      Warrant, the same amount and kind of securities, cash or property as it would
      have been entitled to receive upon the occurrence of such Fundamental
      Transaction if it had been, immediately prior to such Fundamental Transaction,
      the holder of the number of Warrant Shares then issuable upon exercise in full
      of this Warrant (the “Alternate
      Consideration”).
      For
      purposes of any such exercise, the determination of the Exercise Price shall
      be
      appropriately adjusted to apply to such Alternate Consideration based on the
      amount of Alternate Consideration issuable in respect of one share of Common
      Stock in such Fundamental Transaction, and the Company shall apportion the
      Exercise Price among the Alternate Consideration in a reasonable manner
      reflecting the relative value of any different components of the Alternate
      Consideration. If holders of Common Stock are given any choice as to the
      securities, cash or property to be received in a Fundamental Transaction, then
      the Holder shall be given the same choice as to the Alternate Consideration
      it
      receives upon any exercise of this Warrant following such Fundamental
      Transaction. At the Holder’s request, any successor to the Company or surviving
      entity in such Fundamental Transaction shall, issue to the Holder a new warrant
      substantially in the form of this Warrant and consistent with the foregoing
      provisions and evidencing the Holder’s right to purchase the Alternate
      Consideration for the aggregate Exercise Price upon exercise thereof. The terms
      of any agreement pursuant to which a Fundamental Transaction is effected shall
      include terms requiring any such successor or surviving entity to comply with
      the provisions of this paragraph (c) and insuring that the Warrant (or any
      such
      replacement security) will be similarly adjusted upon any subsequent transaction
      analogous to a Fundamental Transaction.

     

    Number
      of Warrant Shares.
      Simultaneously with any adjustment to the Exercise Price pursuant to paragraphs
      (a) of this Section, the number of Warrant Shares that may be purchased upon
      exercise of this Warrant shall be increased or decreased proportionately, so
      that after such adjustment the aggregate Exercise Price payable hereunder for
      the adjusted number of Warrant Shares shall be the same as the aggregate
      Exercise Price in effect immediately prior to such adjustment.

    

      Calculations.
        All
        calculations under this Section 9 shall be made to the nearest cent or the
        nearest 1/100th of a share, as applicable. The number of shares of Common
        Stock
        outstanding at any given time shall not include shares owned or held by or
        for
        the account of the Company, and the disposition of any such shares shall
        be
        considered an issue or sale of Common Stock.

       

    

    
      
         

      

      
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    Notice
      of Adjustments.
      Upon
      the occurrence of each adjustment pursuant to this Section 9, the Company at
      its
      expense will promptly compute such adjustment in accordance with the terms
      of
      this Warrant and prepare a certificate setting forth such adjustment, including
      a statement of the adjusted Exercise Price and adjusted number or type of
      Warrant Shares or other securities issuable upon exercise of this Warrant (as
      applicable), describing the transactions giving rise to such adjustments and
      showing in detail the facts upon which such adjustment is based. Upon written
      request, the Company will promptly deliver a copy of each such certificate
      to
      the Holder and to the Company’s Transfer Agent.

     

    Notice
      of Corporate Events.
      If the
      Company (i) declares a dividend or any other distribution of cash, securities
      or
      other property in respect of its Common Stock, (ii) authorizes or approves,
      enters into any agreement contemplating or solicits stockholder approval for
      any
      Fundamental Transaction or (iii) authorizes the voluntary dissolution,
      liquidation or winding up of the affairs of the Company, then, except if such
      notice and the contents thereof shall be deemed to constitute material
      non-public information, the Company shall deliver to the Holder a notice
      describing the material terms and conditions of such transaction, at least
      20
      calendar days prior to the applicable record or effective date on which a Person
      would need to hold Common Stock in order to participate in or vote with respect
      to such transaction, and the Company will take all steps reasonably necessary
      in
      order to insure that the Holder is given the practical opportunity to exercise
      this Warrant prior to such time so as to participate in or vote with respect
      to
      such transaction; provided, however, that the failure to deliver such notice
      or
      any defect therein shall not affect the validity of the corporate action
      required to be described in such notice. Until the exercise of this Warrant
      or
      any portion of this Warrant, the Holder shall not have nor exercise any rights
      by virtue hereof as a stockholder of the Company (including without limitation
      the right to notification of stockholder meetings or the right to receive any
      notice or other communication concerning the business and affairs of the Company
      other than as provided in this Section 9).

     

    Limitation
      on Exercise.
      [Holder
      may individually elect to omit either or both of clauses (i) and (ii) of this
      Section 10 upon first issuance of the Warrant at Closing.]

     

    [Notwithstanding
      the foregoing, the Company shall not effect the exercise of this Warrant and
      no
      holder of this Warrant shall have the right to exercise this Warrant to the
      extent that after giving effect to such exercise, such Person (together with
      such Person's affiliates), would have acquired, through exercise of this Warrant
      or otherwise, beneficial ownership of a number of shares of Common Stock that,
      when added to the number of shares of Common Stock beneficially owned by such
      Person (together with such Person's affiliates), exceeds 4.99% of the number
      of
      shares of Common Stock outstanding immediately after giving effect to such
      exercise. For purposes of the foregoing sentence, the aggregate number of shares
      of Common Stock beneficially owned by such Person and its affiliates shall
      include the number of shares of Common Stock issuable upon exercise of this
      Warrant with respect to which the determination of such sentence is being made,
      but shall exclude shares of Common Stock which would be issuable upon (i)
      exercise of the remaining, unexercised portion of this Warrant beneficially
      owned by such Person and its affiliates and (ii) exercise or conversion of
      the
      unexercised or unconverted portion of any other securities of the Company
      beneficially owned by such Person and its affiliates (including, without
      limitation, any convertible notes, debentures or preferred stock) subject to
      a
      limitation on conversion or exercise analogous to the limitation contained
      herein. Except as set forth in the preceding sentence, for purposes of this
      paragraph, beneficial ownership shall be calculated in accordance with Section
      13(d) of the Securities Exchange Act of 1934, as amended. Upon the written
      request of any Holder, the Company shall promptly, but in no event later than
      two (2) Business Days following the receipt of such notice, confirm in writing
      to any such holder the number of shares of Common Stock then outstanding. In
      any
      case, the number of outstanding shares of Common Stock shall be determined
      after
      giving effect to the exercise of Warrants by such holder and its affiliates
      since the date as of which such number of outstanding shares of Common Stock
      was
      last reported. The restriction described in this paragraph may be waived, in
      whole or in part, upon sixty-one (61) days prior notice from the Holder to
      the
      Company.]

     

    
      
         

      

      
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    [Notwithstanding
      the foregoing, the Company shall not effect the exercise of this Warrant and
      no
      holder of this Warrant shall have the right to exercise this Warrant to the
      extent that after giving effect to such exercise, such Person (together with
      such Person's affiliates), would have acquired, through exercise of this Warrant
      or otherwise, beneficial ownership of a number of shares of Common Stock that,
      when added to the number of shares of Common Stock beneficially owned by such
      Person (together with such Person's affiliates), exceeds 9.99% of the number
      of
      shares of Common Stock outstanding immediately after giving effect to such
      exercise. For purposes of the foregoing sentence, the aggregate number of shares
      of Common Stock beneficially owned by such Person and its affiliates shall
      include the number of shares of Common Stock issuable upon exercise of this
      Warrant with respect to which the determination of such sentence is being made,
      but shall exclude shares of Common Stock which would be issuable upon (i)
      exercise of the remaining, unexercised portion of this Warrant beneficially
      owned by such Person and its affiliates and (ii) exercise or conversion of
      the
      unexercised or unconverted portion of any other securities of the Company
      beneficially owned by such Person and its affiliates (including, without
      limitation, any convertible notes, debentures or preferred stock) subject to
      a
      limitation on conversion or exercise analogous to the limitation contained
      herein. Except as set forth in the preceding sentence, for purposes of this
      paragraph, beneficial ownership shall be calculated in accordance with Section
      13(d) of the Securities Exchange Act of 1934, as amended. Upon the written
      request of any Holder, the Company shall promptly, but in no event later than
      two (2) Business Days following the receipt of such notice, confirm in writing
      to any such holder the number of shares of Common Stock then outstanding. In
      any
      case, the number of outstanding shares of Common Stock shall be determined
      after
      giving effect to the exercise of Warrants by such holder and its affiliates
      since the date as of which such number of outstanding shares of Common Stock
      was
      last reported. The restriction described in this paragraph may be waived, in
      whole or in part, upon sixty-one (61) days prior notice from the Holder to
      the
      Company.]

    

      No
        Fractional Shares.
        No
        fractional shares of Warrant Shares will be issued in connection with any
        exercise of this Warrant. In lieu of any fractional shares which would,
        otherwise be issuable, the Company shall pay cash equal to the product of
        such
        fraction multiplied by the closing price of one Warrant Share as reported
        by
        Bloomberg L.P. (or the successor to its function of reporting share prices)
        on
        the date of exercise.

       

    

    
      
         

      

      
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    Exchange
      Act Filings.
      The
      Holder agrees and acknowledges that it shall have sole responsibility for making
      any applicable filings with the U.S. Securities and Exchange Commission pursuant
      to Section 13 and 16 of the Securities Exchange Act of 1934, as amended, as
      a
      result of its acquisition of this Warrant and the Warrant Shares and any future
      retention or transfer thereof.

     

    Notices.
      Any and
      all notices or other communications or deliveries hereunder (including, without
      limitation, any Exercise Notice) shall be in writing and shall be deemed given
      and effective on the earliest of (i) the date of transmission, if such notice
      or
      communication is delivered via facsimile at the facsimile number specified
      in
      the Subscription Agreement prior to 5:00 p.m. (New York time) on a Trading
      Day,
      (ii) the next Trading Day after the date of transmission, if such notice or
      communication is delivered via facsimile at the facsimile number specified
      in
      the Subscription Agreement on a day that is not a Trading Day or later than
      5:00
      p.m. (New York time) on any Trading Day, (iii) the Trading Day following the
      date of mailing, if sent by nationally recognized overnight courier service,
      or
      (iv) upon actual receipt by the party to whom such notice is required to be
      given. The addresses for such communications shall be: (i) if to the Company,
      to
      the address set forth in the Subscription Agreement, or (ii) if to the Holder,
      to the address number appearing on the Warrant Register, the Facsimile number
      specified in the Subscription Agreement or such other address or facsimile
      number as the Holder may provide to the Company in accordance with this Section.
      For purposes of this Warrant, “Trading Day” means (x) a day on which the Common
      Stock is traded on a National Exchange, the NASDAQ SmallCap Market, the Toronto
      Stock Exchange, or (y) if the Common Stock is not listed thereon, a day on
      which
      the Common Stock is traded in the over-the-counter market, as reported by the
      OTC Bulletin Board, or (z) if the Common Stock is not quoted on the OTC Bulletin
      Board, a day on which the Common Stock is quoted in the over-the-counter market
      as reported by the Pink Sheets LLC (or any similar organization or agency
      succeeding to its functions of reporting prices); provided, that in the event
      that the Common Stock is not listed or quoted as set forth in (x), (y) and
      (z)
      hereof, then Trading Day shall mean a business day.

     

    Warrant
      Agent.
      The
      Company shall serve as warrant agent under this Warrant. Upon 30 days’ notice to
      the Holder, the Company may appoint a new warrant agent. Any corporation into
      which the Company or any new warrant agent may be merged or any corporation
      resulting from any consolidation to which the Company or any new warrant agent
      shall be a party or any corporation to which the Company or any new warrant
      agent transfers substantially all of its corporate trust or shareholders
      services business shall be a successor warrant agent under this Warrant without
      any further act. Any such successor warrant agent shall promptly cause notice
      of
      its succession as warrant agent to be mailed (by first class mail, postage
      prepaid) to the Holder at the Holder’s last address as shown on the Warrant
      Register.

     

    Miscellaneous.

     

    This
      Warrant shall be binding on and inure to the benefit of the parties hereto
      and
      their respective successors and assigns. Subject to the preceding sentence,
      nothing in this Warrant shall be construed to give to any Person other than
      the
      Company and the Holder any legal or equitable right, remedy or cause of action
      under this Warrant. This Warrant may be amended in writing signed by the Company
      and the Holder and their successors and assigns and the Warrants issued pursuant
      to the Subscription Agreements, including this Warrant, may be amended in
      writing signed by the Company and the Holders of no less than a majority of
      the
      Warrant Shares issuable upon exercise of all such then outstanding Warrants.
      

     

    
      
         

      

      
        -
          9
          -

        
          

        

      

      
         

      

    

     

    All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each party agrees that all legal
      proceedings concerning the interpretations, enforcement and defense of this
      Warrant and the transactions herein contemplated (“Proceedings”)
      (whether brought against a party hereto or its respective Affiliates, employees
      or agents) may be commenced in the state and federal courts sitting in the
      State
      of New York (the “New
      York Courts”).
      Each
      party hereto hereby irrevocably submits to the non-exclusive jurisdiction of
      the
      New York Courts, located in the County of New York for the adjudication of
      any
      dispute hereunder or in connection herewith or with any transaction contemplated
      hereby or discussed herein, and hereby irrevocably waives, and agrees not to
      assert in any Proceeding, any claim that it is not personally subject to the
      jurisdiction of any New York Court, or that such Proceeding has been commenced
      in an improper or inconvenient forum. Each party hereto hereby irrevocably
      waives personal service of process and consents to process being served in
      any
      such Proceeding by mailing a copy thereof via registered or certified mail
      or
      overnight delivery (with evidence of delivery) to such party at the address
      in
      effect for notices to it under this Warrant and agrees that such service shall
      constitute good and sufficient service of process and notice thereof. Nothing
      contained herein shall be deemed to limit in any way any right to serve process
      in any manner permitted by law. Each party hereto hereby irrevocably waives,
      to
      the fullest extent permitted by applicable law, any and all right to trial
      by
      jury in any legal proceeding arising out of or relating to this Warrant or
      the
      transactions contemplated hereby. If either party shall commence a Proceeding
      to
      enforce any provisions of this Warrant, then the prevailing party in such
      Proceeding shall be reimbursed by the other party for its attorney’s fees and
      other costs and expenses incurred with the investigation, preparation and
      prosecution of such Proceeding.

     

    The
      headings herein are for convenience only, do not constitute a part of this
      Warrant and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    In
      case
      any one or more of the provisions of this Warrant shall be invalid or
      unenforceable in any respect, the validity and enforceability of the remaining
      terms and provisions of this Warrant shall not in any way be affected or
      impaired thereby and the parties will attempt in good faith to agree upon a
      valid and enforceable provision which shall be a commercially reasonable
      substitute therefor, and upon so agreeing, shall incorporate such substitute
      provision in this Warrant.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK,

    SIGNATURE
      PAGE FOLLOWS]

     

    
      
         

      

      
        -
          10
          -

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be duly executed by its authorized officer
      as
      of the date first indicated above.

     

    
      	 	
              CAPITAL
                GOLD CORPORATION

            
	 	 	 
	 	
              By:
                

            	 
	 	 	
              Name:
                Gifford A. Dieterle

            
	 	 	
              Title:  
                President

            

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Exhibit
      A

     

    EXERCISE
      NOTICE

     

    To
      Capital
      Gold Corporation:

     

    The
      undersigned holder hereby exercises the right to purchase ______________ of
      the
      shares of Common Stock ("Common
      Stock")
      of
      Capital Gold Corporation, a Delaware corporation (the "Company"), evidenced
      by
      the attached Warrant No. [___],
      originally issued January __, 2007 (the "Warrant"). Capitalized terms used
      herein and not otherwise defined shall have the respective meanings set forth
      in
      the Warrant. 

     

    1. Form
      of Warrant Exercise Price.
      The
      Holder intends that payment of the Warrant Exercise Price shall be made as:
      

     

    
      	 	
              ______

            	
              "Cash
                Exercise" with respect to ________ Shares of Common Stock;
                and/or

            

    

     

    
      	 	
              ______

            	
              "Cashless
                Exercise" with respect to ______ Shares of Common Stock (to the extent
                permitted by the terms of the Warrant).

            

    

     

    2. Payment
      of Warrant Exercise Price. In the event that the holder has elected a Cash
      Exercise with respect to some or all of the Shares of Common Stock to be issued
      pursuant hereto, the holder shall pay the sum of $___________________ to the
      Company in accordance with the terms of the Warrant.

     

    3. By
      its
      delivery of this Exercise Notice, the undersigned represents and warrants to
      the
      Company that
      (i) the
      aforesaid shares of Common Stock are being acquired for the account of the
      undersigned for investment and not with a view to, or for resale in connection
      with, the distribution thereof and that the undersigned has no present intention
      of distributing or reselling such shares; (ii) the undersigned is aware of
      the
      Company’s business affairs and financial condition and has acquired sufficient
      information about the Company to reach an informed and knowledgeable decision
      regarding its investment in the Company; (iii) the undersigned is experienced
      in
      making investments of this type and has such knowledge and background in
      financial and business matters that the undersigned is capable of evaluating
      the
      merits and risks of this investment and protecting the undersigned’s own
      interests; (iv) the undersigned is an “accredited investor” as defined in
      Regulation D under the Securities Act of 1933, as amended (the “Securities
      Act”);
      and
      (v) the undersigned understands that the shares of Common Stock issuable upon
      exercise of this Warrant have not been registered under the Securities, by
      reason of a specific exemption from the registration provisions of the
      Securities Act, which exemption depends upon, among other things, the bona
      fide
      nature of the investment intent as expressed herein, and, because such
      securities have not been registered under the Securities Act, they must be
      held
      indefinitely unless subsequently registered under the Securities Act or an
      exemption from such registration is available; (v) the undersigned is aware
      that
      the aforesaid shares of Common Stock may not be sold pursuant to Rule 144
      adopted under the 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (Exercise
      Notice Continued)

    

    

    Securities
      Act unless certain conditions are met and until the undersigned has held the
      shares for the number of years prescribed by Rule 144; and (vi) the undersigned
      agrees not to make any disposition of all or any part of the aforesaid shares
      of
      Common Stock unless and until there is then in effect a registration statement
      under the Securities Act covering such proposed disposition and such disposition
      is made in accordance with said registration statement, or the undersigned
      has
      provided the Company with an opinion of counsel satisfactory to the Company,
      stating that such registration is not required.

    

    [By
      its
      delivery of this Exercise Notice, the undersigned represents and warrants to
      the
      Company that in giving effect to the exercise evidenced hereby the Holder will
      not beneficially own in excess of the number of shares of Common Stock
      (determined in accordance with Section 13(d) of the Securities Exchange Act
      of
      1934) permitted to be owned under Section 10 of this Warrant to which this
      notice relates.]

     

    The
      undersigned requests that certificates for the shares of Common Stock issuable
      upon this exercise be issued in the name of
      the
      undersigned or in such other name as is specified below: 

     

    
      	 	 
	 	
              _______________________

              (Please
                print name)

            
	 	
               

              _______________________

              _______________________

              _______________________

              (Please
                print address)

            
	 	
               

              _______________________

              (Please
                insert Social Security

              or
                Tax Identification Number)

            

    

     

    Dated:_______________,
      ____

     

    
      	 	
              _______________________________________

            
	 	
              (Signature
                of Holder)

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    FORM
      OF
      ASSIGNMENT

     

     

    [To
      be
      completed and signed only upon transfer of Warrant]

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto
      ________________________________ the right represented by the within Warrant
      to
      purchase ____________ shares of Common Stock of Capital Gold Corporation to
      which the within Warrant relates and appoints ________________ attorney to
      transfer said right on the books of [___________] with full power of
      substitution in the premises.

     

    Dated:
      _______________, ____

     

    
      	 	
               
                

            
	 	
              (Signature
                must conform in all respects to name of holder as specified on the
                face of
                the Warrant)

            
	 	 
	 	 
	 	
               
                

            
	 	
              Address
                of Transferee

            
	 	 
	 	
               
                

            
	 	 
	 	
               
                

            

    

    

    In
      the
      presence of:

     

    ______________________________REGISTRATION
      RIGHTS AGREEMENT

    

    

    Registration
      Rights Agreement
      (this
      "Agreement")
      is
      made and entered into as of January 23, 2007, by and among Langer, Inc., a
      New
      York corporation (the "Company"); and Peter A. Asch, Richard D. Asch, A.
      Lawrence Litke, and Joseph M. Candido (each, a “Specified Holder” and
      collectively, the “Specified Holders”). 

    

    This
      Agreement is being entered into pursuant to the Stock Purchase Agreement, dated
      as of November 14, 2006, by and among the Company and each of the Specified
      Holders (the "Purchase Agreement"). Capitalized terms used and not otherwise
      defined herein shall have the meanings given such terms in the Purchase
      Agreement.

    

    The
      Company and the Specified Holders hereby agree as follows:

    

    1. Definitions.
      As used
      in this Agreement, the following terms shall have the following
      meanings:

    

      "Business
      Day" means any day except Saturday, Sunday and any day which shall be a legal
      holiday or a day on which banking institutions in the state of New York
      generally are authorized or required by law or other government actions to
      close.

    

    "Commission"
      means the Securities and Exchange Commission.

    

    "Common
      Stock" means the Company's Common Stock, par value $0.02 per share.

    

    "Exchange
      Act" means the Securities Exchange Act of 1934, as amended.

    

    “Filing
      Date” means the day which is eleven months following the Closing Date, provided,
      however, with respect to any Registrable Securities issued pursuant to Section
      2.6 of the Purchase Agreement, such day shall be 60 days following the date
      of
      issuance of any such shares.

    

    "Holder"
      or "Holders" means the holder or holders, as the case may be, from time to
      time
      of Registrable Securities, including without limitation the Specified Holders
      and their permitted assignees.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    "Holder
      Information” shall mean any information reasonably related to (i) the
      Registrable Securities, (ii) the plan of distribution, and (iii) the acquisition
      of Twincraft, Inc. by the Company.

    

    "Indemnified
      Party" shall have the meaning set forth in Section 5(c).

    

    "Indemnifying
      Party" shall have the meaning set forth in Section 5(c).

    

    "Losses"
      shall have the meaning set forth in Section 5(a).

    

    “Mandatory
      Registration Statement” means the Registration Statement or Registration
      Statements required to be filed pursuant to Section 2(a) hereof, including
      all
      amendments thereof (whether pre-effective or post-effective), if
      any.

    

    "NASDAQ"
      shall mean the National Association of Securities Dealers Automatic Quotation
      System.

    

    "Person"
      means an individual or a corporation, partnership, trust, incorporated or
      unincorporated association, joint venture, limited liability company, joint
      stock company, govern-ment (or an agency or political subdivision thereof)
      or
      other entity of any kind.

    

    “Piggyback
      Registration Statement” means any Registration Statement, if any, required to be
      filed pursuant to Section 2(b) hereof, including all amendments thereof (whether
      pre-effective or post-effective), if any.

    

    "Proceeding"
      means an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

     

    "Prospectus"
      means the prospectus included in the Registration Statement (including, without
      limitation, a prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective registration statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), 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 the Registration Statement,
      and
      all other amendments and supplements to the Prospectus, including post-effective
      amendments, and all material incorporated by reference in such
      Prospectus.

    

    "Registrable
      Securities" means (i) the shares of Common Stock issued by the Purchaser under
      the Purchase Agreement, and the securities issuable upon any stock split, stock
      dividend, recapitalization, merger, consolidation or similar event with respect
      to such shares of Common Stock, and (ii) any other dividend or other
      distribution with respect to conversion or exchange of, or in replacement of,
      Registrable Securities.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Registration
      Statement” means the Mandatory Registration Statement and the Piggyback
      Registration Statements, and all exhibits thereto, and all material incorporated
      by reference into any such Registration Statement.

    

    "Rule
      144" means Rule 144 promulgated by the Commission pursuant to the Securities
      Act, as such Rule may be amended from time to time, or any similar rule or
      regulation hereafter adopted by the Commission having substantially the same
      effect as such Rule.

    

    "Rule
      415" means Rule 415 promulgated by the Commission pursuant to the Securities
      Act, as such Rule may be amended from time to time, or any similar rule or
      regulation hereafter adopted by the Commission having substantially the same
      effect as such Rule.

    

    "Rule
      416" means Rule 416 promulgated by the Commission pursuant to the Securities
      Act, as such Rule may be amended from time to time, or any similar rule or
      regulation hereafter adopted by the Commission having substantially the same
      effect as such Rule.

    

    "Securities
      Act" means the Securities Act of 1933, as amended.

    

    2. Mandatory
      and Piggyback Registration.
      

    

    (a) (i) On
      or
      prior to the Filing Date, the Company shall use its commercially reasonable
      efforts to prepare and file with the Commission "shelf" Registration Statements
      covering all Registrable Securities for an offering to be made on a continuous
      basis pursuant to Rule 415. The Registration Statements shall be on Form S-3
      (or
      on another form permissible for such registration in accordance herewith).
      Such
      Registration Statements are hereinafter called the “Mandatory Registration
      Statement.” Nothing herein shall preclude the Company from including in the
      Mandatory Registration Statement any Common Stock of any other person in
      addition to the Holders. 

    

    (ii) The
      Company shall use commercially reasonable efforts to cause the Registration
      Statements to be declared effective under the Securities Act as promptly as
      practicable after the filing thereof and to keep such Registration Statements
      continuously effective under the Securities Act until such date as is the
      earlier to occur of (x) the date when all Registrable Securities covered by
      such
      Registration Statements have been sold or (y) the date on which the Registrable
      Securities may be sold pursuant to Rule 144(k) as determined by counsel to
      the
      Company pursuant to a written opinion letter, addressed to the Company's
      transfer agent to such effect (the "Effectiveness Period"). 

    

    (b) (i) If,
      at
      any time during the Effectiveness Period, (A) the Company proposes to register
      any of its Common Stock under the Securities Act, whether for its own account
      or
      at the demand or request of any holder of Common Stock (other than registrations
      effected on Forms S-4 or S-8, or forms then appropriate for similar types of
      offerings, and provided that the holders of such Common Stock do not have any
      rights to exclude from such registration statement the registration of shares
      of
      Common Stock not owned by them) in connection with an underwritten public
      offering, and (B) the Company’s current Chairman of the Board, Warren B. Kanders
      (“Kanders”), elects to sell all or part of the shares of Common Stock
      beneficially owned by him as part of the offering, the Company will promptly
      give notice thereof (the “Company Registration Notice”) to the Holders. Upon the
      written request of Holders of not less than 50% of the Registrable Securities
      within 10 days from the date of the Company Registration Notice, the Company
      will use its commercially reasonable efforts to include in such registration
      a
      number of shares of Registrable Securities requested by such Holders to be
      included in such registration not to exceed with respect to each Holder more
      than the number of shares of Registrable Securities of such Holder which
      represents the same proportion to such Holder’s total holdings of Registrable
      Securities that the number of shares being sold by Kanders in the underwritten
      public offering bears to the total number of Kanders Shares, subject to the
      right of the managing underwriter or representatives of the underwriters, or
      the
      selling stockholders under such other registration statement, to limit the
      number of shares of Common Stock which may be included in such registration
      statement, as more fully set forth in the following paragraph. The shares of
      Common Stock to be included in such registration shall be offered upon the
      same
      terms and conditions, as nearly as may be, to those applicable to any Common
      Stock included in such registration. The Company shall promptly advise the
      Holders of the effectiveness of any such registration (which notice shall
      include a list of the jurisdictions in which shares of Stock included therein
      have been qualified for sale). 

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (ii) With
      respect to any registration and underwritten public offering effected pursuant
      to Section 2(b)(i) above, if the underwriter managing such offering advises
      the
      Company that in its opinion the aggregate amount of securities requested to
      be
      included in such registration, whether by the Company or the Holders or other
      holders of Common Stock, exceeds the amount of such securities which can be
      sold
      in such offering, then the Company will include in such registration only the
      amount of securities requested to be included in such registration (which in
      the
      opinion of the managing underwriter can be sold) as reduced in the following
      order of priority: (1) the Holders hereunder (except in the case of a
      registration pursuant to Section 2(a)(i) above), (2) the shares of Common
      Stock being offered by persons having demand registration rights, and (3) the
      securities which the Company proposes to sell in such offering; provided,
      however,
      that if
      Holders request the inclusion of shares of Common Stock in such registration,
      then the shares being offered by persons other than the Company which do not
      have senior rights to require registration of their shares of Common Stock
      shall
      be included in such registration on a pro-rata
      basis,
      the amount of such shares to be included in such registration to be determined
      (x) by constructing a fraction, the numerator of which is the number of shares
      to be registered and the denominator of which is the aggregate number of shares
      of Common Stock proposed to be sold by all holders (other than the Company)
      of
      shares of Common Stock, and (y) multiplying the aggregate number of shares
      to be included in such registration statement by such fraction. Furthermore,
      the
      Holders shall be restricted from selling the Registrable Securities for such
      period, which the Company shall use its commercially reasonable efforts to
      cause
      not to exceed six (6) months from the date such registration statement is first
      filed covering the Registrable Securities, to the extent any lead underwriter
      or
      managing underwriter or representative of the underwriters requests that the
      Holders’ Registrable Securities be so restricted.

    

    3. Registration
      Procedures.
      

     

    (a) In
      connection with the Company's registration obligations hereunder, the Company
      shall as expeditiously as reasonably possible (i) prepare and file with the
      Commission a registration statement with respect to such shares of Common Stock
      (including such indeterminate number of shares of Common Stock pursuant to
      Rule
      416 to cover securities issuable upon stock splits, stock dividends or similar
      transactions) and use its commercially reasonable efforts to cause such
      registration statement to become effective and maintain the effectiveness of
      such registration statement for the Effectiveness Period, (ii) use its
      commercially reasonable efforts to register or qualify the securities covered
      by
      such registration statement under such other securities or state blue sky laws
      as the Holder shall request, but not more than five jurisdictions, except that
      the Company shall not for any such purpose be required to qualify to do business
      as a foreign corporation or to file a general consent to service of process
      in
      any jurisdiction wherein it is not so qualified or has not so consented to
      service, and (iii) use its commercially reasonable efforts to list or qualify
      for quotation, the securities covered by such registration statement, with
      any
      securities exchange or national quotation system on which the Common Stock
      is
      then listed or quoted.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (b) If
      (i)
      there is material non-public information regarding the Company which the
      Company's Board of Directors (the "Board") reasonably determines not to be
      in
      the Company's best interest to disclose and which the Company is not otherwise
      required to disclose, or (ii) there is a significant business opportunity
      (including, but not limited to, the acquisition or disposition of assets (other
      than in the ordinary course of business) or any merger, consolidation, tender
      offer or other similar transaction) available to the Company which the Board
      reasonably determines not to be in the Company's best interest to disclose
      and
      which the Company would be required to disclose under the Registration
      Statement, then the Company may postpone or suspend filing or effectiveness
      of a
      registration statement for a period not to exceed 60 consecutive days,
provided,
      however,
      that
      the Company may not postpone or suspend its obligation under this Section 3(b)
      for more than 90 days in the aggregate during any 12 month period.

    

     

    4. Registration
      Expenses.
      All
      fees and expenses incurred by the Company in connection with the Company's
      performance of or compliance with its obligations hereunder, including without
      limitation (i) all registration and filing fees (including any expenses incident
      to filing with NASDAQ and each other securities exchange, national quotation
      system, market or over-the-counter bulletin board on which the Common Stock
      issued by the Company is then listed or quoted), (ii) blue sky fees and
      expenses, (iii) all printing expenses, and (iv) all fees and disbursements
      of
      counsel and accountants for the Company (including the expenses of any audit
      incident to or required by any such registration), and any other advisors to
      the
      Company in connection with the transactions contemplated hereby, will be paid
      by
      the Company. The Holders shall bear their own expenses for all of their
      attorneys’ fees and expenses, underwriting discounts, selling commissions and
      stock transfer taxes incurred in connection with the sale of the Registrable
      Securities.

     

    5. Indemnification

    

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder to the fullest extent permitted by applicable law,
      from and against any and all losses, claims, damages, liabilities, costs
      (including, without limitation, costs of preparation and reasonable attorneys'
      fees) and expenses (collectively, "Losses"),
      as
      incurred, arising out of or relating to any untrue or alleged untrue statement
      of a material fact contained in the Registration Statement, any Prospectus
      or
      any form of prospectus or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or relating to any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein (in the case of any Prospectus or form of prospectus
      or
      supplement thereto, in the light of the circumstances under which they were
      made) not misleading, except to the extent, but only to the extent, that such
      untrue statements or omissions are based upon information regarding such Holder
      furnished to the Company by such Holder for use therein or to the extent that
      such information relates to such Holder or such Holder's proposed method of
      distribution of Registrable Securities and was reviewed or approved in writing
      by such Holder for use in the Registration Statement, such Prospectus or such
      form of Prospectus or in any amendment or supplement thereto.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (b) Indemnification
      by Holders.
      Each
      Holder shall, notwithstanding any termination of this Agreement, severally,
      based on each Holder’s respective percentage of Registrable Securities,
      indemnify and hold harmless the Company, the directors, officers, agents,
      representatives and employees, each Person who controls the Company (within
      the
      meaning of Section 15 of the Securities Act and Section 20 of the Exchange
      Act),
      and the directors, officers, agents or employees of such controlling Persons,
      to
      the fullest extent permitted by applicable law, from and against all Losses,
      as
      incurred, arising out of or relating to any untrue or alleged untrue statement
      of a material fact contained in the Registration Statement, any Prospectus
      or
      any form of prospectus or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or based upon any omission of a
      material fact required to be stated therein or necessary to make the statements
      therein (in the case of any Prospectus or form of prospectus or supplement
      thereto, in the light of the circumstances under which they were made) not
      misleading, to the extent that such untrue statement or omission is contained
      in
      or omitted from any information so furnished by such Holder to the Company
      for
      inclusion therein or to the extent that such information relates to such Holder
      or such Holder's proposed method of distribution of Registrable Securities
      and
      was reviewed or approved in writing by such Holder for use in the Registration
      Statement, such Prospectus or such form of Prospectus Supplement or in any
      amendment or supplement thereto.

    

    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an "Indemnified
      Party"),
      such
      Indemnified Party promptly shall notify the Person from whom indemnity is sought
      (the "Indemnifying
      Party")
      in
      writing, and the Indemnifying Party shall assume the defense thereof, including
      the employment of counsel reasonably satisfactory to the Indemnified Party
      and
      the payment of all fees and expenses incurred in connection with defense
      thereof; provided, that the failure of any Indemnified Party to give such notice
      shall not relieve the Indemnifying Party of its obligations or liabilities
      pursuant to this Agreement, except to the extent that such failure shall have
      materially adversely prejudiced the Indemnifying Party.

    

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; or (2) the named parties to any such Proceeding (including any
      impleaded parties) include both such Indemnified Party and the Indemnifying
      Party, and such Indemnified Party shall have been advised by counsel that a
      conflict of interest is likely to exist if the same counsel were to represent
      such Indemnified Party and the Indemnifying Party (in which case, if such
      Indemnified Party notifies the Indemnifying Party in writing that it elects
      to
      employ separate counsel at the expense of the Indemnifying Party, the
      Indemnifying Party shall not have the right to assume the defense thereof and
      such counsel shall be at the expense of the Indemnifying Party). The
      Indemnifying Party shall not be liable for any settlement of any such Proceeding
      effected without its written consent, which consent shall not be unreasonably
      withheld.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (d) Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party because of a failure or refusal of a governmental authority
      to
      enforce such indemnification in accordance with its terms (by reason of public
      policy or otherwise), then each Indemnifying Party, in lieu of indemnifying
      such
      Indemnified Party, shall contribute to the amount paid or payable by such
      Indemnified Party as a result of such Losses, in such proportion as is
      appropriate to reflect the relative fault of the Indemnifying Party and
      Indemnified Party in connection with the actions, statements or omissions that
      resulted in such Losses as well as any other relevant equitable considerations.
      The relative fault of such Indemnifying Party and Indemnified Party shall be
      determined by reference to, among other things, whether any action in question,
      including any untrue or alleged untrue statement of a material fact or omission
      or alleged omission of a material fact, has been taken or made by, or relates
      to
      information supplied by, such Indemnifying, Party or Indemnified Party, and
      the
      parties' relative intent, knowledge, access to information and opportunity
      to
      correct or prevent such action, statement or omission. The amount paid or
      payable by a party as a result of any Losses shall be deemed to include, subject
      to the limitations set forth in Section 5(c), any reasonable attorneys' or
      other
      reasonable fees or expenses incurred by such party in connection with any
      Proceeding to the extent such party would have been indemnified for such fees
      or
      expenses if the indemnification provided for in this Section was available
      to
      such party in accordance with its terms.

    

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph. No Person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the Securities Act) shall be entitled to contribution from any Person who was
      not guilty of such fraudulent misrepresentation.

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties.

    

    6. Miscellaneous.

    

    (a) Remedies.
      In the
      event of a breach by the Company, on the one hand, or by a Holder, on the other
      hand, of any of their respective obligations under this Agreement, each Holder
      or the Company, as the case may be, in addition to being entitled to exercise
      all rights granted by law and under this Agreement, including recovery of
      damages, will be entitled to specific performance of its rights under
      this Agreement.
      The Company and each Holder agree that monetary damages would not
      provide adequate
      compensation for any losses incurred by reason of a breach by it of any of
      the
      provisions of this Agreement and further agrees that, in the event of any action
      for specific performance in respect of such breach, it shall waive the defense
      that a remedy at law would be adequate.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (b) Governing
      Law.
      This
      Agreement shall be subject to the exclusive jurisdiction of the courts of New
      York County, New York. The parties to this Agreement agree that any breach
      of
      any term or condition of this Agreement shall be deemed to be a breach occurring
      in the State of New York by virtue of a failure to perform an act required
      to be
      performed in the State of New York and irrevocably and expressly agree to submit
      to the jurisdiction of the courts of the State of New York for the purpose
      of
      resolving any disputes among the parties relating to this Agreement or the
      transactions contemplated hereby. The parties irrevocably waive, to the fullest
      extent permitted by law, any objection which they may now or hereafter have
      to
      the laying of venue of any suit, action or proceeding arising out of or relating
      to this Agreement, or any judgment entered by any court in respect hereof
      brought in New York County, New York, and further irrevocably waive any claim
      that any suit, action or proceeding brought in New York County, New York has
      been brought in an inconvenient forum.

    

    (c) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and each of the Holders. Notwithstanding the foregoing,
      a
      waiver or consent to depart from the provisions hereof with respect to a matter
      that relates exclusively to the rights of Holders and that does not directly
      or
      indirectly affect the rights of other Holders may be given by Holders of at
      least a majority of the Registrable Securities to which such waiver or consent
      relates; provided,
      however,
      that
      the provisions of this sentence may not be amended, modified, or supplemented
      except in accordance with the provisions of the immediately preceding
      sentence.

    

    (d) Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earlier of (i) the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile telephone number specified for
      notice prior to 5:00 p.m., Eastern time, on a Business Day, (ii) the Business
      Day after the date of transmission, if such notice or communication is delivered
      via facsimile at the facsimile telephone number specified for notice later
      than
      5:00 p.m., Eastern time, on any date and earlier than 11:59 p.m., Eastern time,
      on such date, (iii) the Business Day following the date of mailing, if sent
      by
      nationally recognized overnight courier service or (iv) actual receipt by the
      party to whom such notice is required to be given. The addresses for such
      communications shall be with respect to each Holder at its address set forth
      under its name on the signature page hereto, or with respect to the Company,
      addressed to:

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        
Langer,
        Inc.

    

    450
      Commack Road

    Deer
      Park, New York 11729

    Att’n:
      Chief Executive Officer

    Facsimile:
      631-667-1203

     

    or
      to
      such other address or addresses or facsimile number or numbers as any such
      party
      may most recently have designated in writing to the other parties hereto by
      such
      notice. Copies of notices to the Company shall be sent to Kane Kessler, P.C.,
      1350 Avenue of the Americas, 26th Floor, New York, New York 10019, Attn: Robert
      L. Lawrence, Esq., Facsimile No. 212-245-3009. Notices to any Holder shall
      be
      sent to the addresses listed on Schedule 1 attached hereto, if applicable.
      Copies of such notices shall be sent to _______________Att’n: Richard W.
      Kozlowski, Esq., Facsimile No. 802-864-3629.

    

    (e) Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns and shall inure to the benefit of each
      Holder and its successors and assigns. The Company may not assign this Agreement
      or any of its rights or obligations hereunder without the prior written consent
      of each Holder. Each Holder may assign its rights hereunder in the manner and
      to
      the Persons as permitted under this Agreement.

    

    (f) Assignment
      of Registration Rights.
      The
      rights of any of the Specified Holders hereunder, including the right to have
      the Company register for resale Registrable Securities in accordance with the
      terms of this Agreement, shall be assigned only as follows: Each Specified
      Holder may assign such rights to: (a) his or her "immediate family members"
      (as
      defined herein), (b) any trust, the sole beneficiaries of which are the
      Specified Holder’s immediate family members or (c) the personal representative,
      custodian or conservator in the case of the death, bankruptcy or adjudication
      of
      incompetency of the Specified Holder, as the case may be (each person or entity
      set forth in clauses (a), (b) or (c), a "Permitted Transferee"); provided that
      any such Permitted Transferee shall execute and deliver to the Company an
      agreement to be subject to the terms of this Agreement to the same extent as
      if
      the Permitted Transferee were an original party to this Agreement. For the
      purposes of this paragraph, the term "immediate family members" shall mean
      the
      spouse, father, mother, or children of the Specified Holder.

    

    (g) Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

    

    (h) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (i) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held to be
      invalid, illegal, void or unenforceable in any respect, the remainder of the
      terms, provisions, covenants and restrictions set forth herein shall remain
      in
      full force and effect and shall in no way be affected, impaired or invalidated,
      and the parties hereto shall use their reasonable efforts to find and employ
      an
      alternative means to achieve the same or substantially the same result as that
      contemplated by such term, provision, covenant or restriction. It is hereby
      stipulated and declared to be the intention of the parties that they would
      have
      executed the remaining terms, provisions, covenants and restrictions without
      including any of such that may be hereafter declared invalid, illegal, void
      or
      unenforceable.

    

    (j) Headings.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.

    

    [Signature
      Page Follows]

    

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    In
      Witness Whereof,
      the
      parties hereto have caused this Registration Rights Agreement to be duly
      executed by their respective authorized persons as of the date first indicated
      above.

     

    
      	 	 	 
	COMPANY:	LANGER,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
W.
              Gray
              Hudkins
	 	 	
              
                

              

              Name:
                W. Gray Hudkins 

              Title:
                President and CEO

            
	 	 	 
	 	 	 
	SPECIFIED HOLDERS:	 	 
	 	 	/s/  Peter A. Asch 
	 	 	
              
                

              

              Peter A. Asch

            
	 	 	 
	 	 	 
	 	 	/s/  Richard D. Asch 
	 	 	
              
Richard
              D. Asch
	 	 	 
	 	 	 
	 	 	/s/  A. Lawrence Litke 
	 	 	
              

              A. Lawrence Litke
	 	 	 
	 	 	 
	 	 	/s/  Joseph M. Candido
	 	
              
Joseph
              M. Candido
	 	 

        

    
      
        
        

      

      
        11

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