Document:

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                                                                  EXHIBIT 10.4

THE OPTIONS GRANTED PURSUANT HERETO AND THE UNDERLYING SHARES OF COMMON STOCK
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"), AND MAY NOT BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND
APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE
ISSUER TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND SUCH
STATE SECURITIES LAWS.

                     VOID AFTER 5:00 P.M. ON AUGUST 12, 2001

                       THE LANGER BIOMECHANICS GROUP, INC.

Date of Original Issuance: February 13, 2001                   Register No.: 4

         THIS IS TO CERTIFY THAT, for value received, Greg Nelson ("NELSON"),
his successors or assigns (each, a "HOLDER"), has been granted 59,961 options
(each a "Langer Option"), each Langer Option entitling the owner thereof to
purchase from the LANGER BIOMECHANICS GROUP, INC., a New York corporation
(the "COMPANY"), at any time on or after the date hereof (the "COMMENCEMENT
DATE") and on or prior to 5:00 p.m., New York City time, on August 12, 2001
(the "EXPIRATION TIME"), one duly authorized, validly issued, fully paid and
nonassessable share of the common stock, par value $.02 per share (the
"Common Stock"), of the Company, as adjusted from time to time in accordance
with the terms and provisions of this Option Agreement (each, an "OPTION
SHARE"), all subject to the terms and conditions contained herein. Subject to
adjustment as provided below, the exercise price per share (the "Exercise
Price") shall be as follows:

<TABLE>
<CAPTION>
           DATE OF EXERCISE                                  EXERCISE PRICE
           ----------------                                  --------------
<S>                                                          <C>
           On or prior to May 14, 2001                               $1.525

           After May 14, 2001, and on or prior to                    $1.550
           June 13, 2001

           After June 13, 2001, and on or prior to                    $1.575
           July 13 , 2001

           After July, 2001 and on or prior to the                     $1.60
           Expiration Time
</TABLE>

The number of Option Shares and the Exercise Price per share set forth above
are subject to adjustment as provided herein. Unless otherwise expressly set
forth herein, all capitalized

<PAGE>

terms used but not otherwise defined herein shall have respective meanings
attributed thereto in Section 13.

         The Langer Options shall not be evidenced by any instrument or
agreement apart from this Option Agreement (the "OPTION AGREEMENT").

1.       Exercise of Langer Options.

         1.1 The Langer Options may be exercised, in whole or in part, but
not as to less than 10,000 Langer Options or, if less, the number of Langer
Options evidenced hereby, on or after the Commencement Date and prior to the
Expiration Time by surrendering this Option Agreement, with the exercise form
provided for herein duly executed by the Holder or by the Holder's duly
authorized attorney-in-fact, at the principal office of the Company,
presently located at 450 Commack Road, Deer Park, New York 11729, or at such
other office or agency in the United States as the Company may designate by
notice to the Holder (in either event, the "COMPANY OFFICES"), accompanied by
payment in full, either in the form of cash, wire transfer, bank cashier's
check or certified check payable to the order of the Company, of the Exercise
Price payable in respect of the Langer Options being exercised. If fewer than
all of the Langer Options are exercised, the Company shall, upon each
exercise prior to the Expiration Time, execute and deliver to the Holder a
new Option Agreement (dated as of the date hereof) and otherwise identical
hereto evidencing the balance of the Langer Options that remain exercisable.

         1.2 On the date of exercise of the Langer Options, the Holder shall
be deemed to have become the holder of record for all purposes of the Option
Shares to which the exercise relates.

         1.3 As soon as practicable, but not in excess of five (5) days,
after the exercise of all or part of the Langer Options, 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 a certificate
or certificates evidencing the number of duly authorized, validly issued,
fully paid and nonassessable Option Shares to which the Holder shall be
entitled upon such exercise, provided that the Company shall not be required
to pay any taxes payable as a result of the issuance of any certificate or
certificates in a name other than that of the Holder, in which case the
Company shall not be required to issue or deliver such certificate(s) unless
or until the person or persons requesting issuance thereof shall have paid to
the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

         1.4 Each certificate representing Option Shares obtained upon
exercise of a Langer Option shall bear a legend as follows unless such Option
Shares have been registered under the Act and the issuance complies with any
applicable state securities laws:

                  "The securities represented by this certificate have been
                  acquired for investment and have not been registered under the
                  Securities Act of 1933, as amended (the "ACT"). The

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                  securities may not be sold, assigned, pledged, hypothecated
                  or otherwise transferred except pursuant to an effective
                  registration statement under the Act and in compliance with
                  applicable state securities laws, or the Company receives
                  an opinion of counsel, reasonably satisfactory to the
                  Company, that such registration is not required and that
                  the sale, assignment, pledge, hypothecation or transfer is
                  in compliance with applicable state securities laws."

2.       Issuance of Common Stock; Reservation of Shares.

         2.1 The Company covenants and agrees that it will at all times
reserve and keep available, free and clear from preemptive rights, out of its
authorized but unissued Common Stock, solely for the purpose of issuance upon
the exercise of Langer Options as provided herein, such number of shares of
Option Shares as shall then be issuable upon the exercise of all Langer
Options then outstanding.

         2.2 The Company covenants and agrees that all Option Shares that may
be issued upon the exercise of all or part of the Langer Options will, upon
issuance in accordance with the terms hereof, be duly authorized, validly
issued, fully paid and nonassessable and free from all taxes, liens and
charges with respect to the issue thereof.

         2.3 The Company further covenants and agrees that if any shares of
Common Stock reserved for the purpose of the issuance of Option Shares upon
exercise of the Langer Options require registration with, or approval of, any
governmental authority under any federal or state law before such shares may
be validly issued or delivered upon exercise, then the Company will promptly
use its best efforts to effect such registration or obtain such approval, as
the case may be.

3.       Adjustments of Exercise Price and Number and Character of Shares
         Issuable Upon Exercise.

         3.1 Upon each adjustment of the Exercise Price as a result of the
calculations made in this Section, this Option Agreement shall thereafter
evidence the right to receive, at the adjusted Exercise Price, that number of
Option Shares (calculated to the nearest one-hundredth) obtained by dividing
(i) the product of the aggregate number of Option Shares covered by this
Option Agreement immediately prior to such adjustment and the Exercise Price
in effect immediately prior to such adjustment of the Exercise Price by (ii)
the Exercise Price in effect immediately after such adjustment of the
Exercise Price.

         3.2 The Exercise Price will be adjusted from time to time as
provided herein.

                  3.2.1 EXTRAORDINARY DIVIDENDS AND DISTRIBUTIONS. In case
the Company at any time or from time to time after the date hereof shall
declare, order, pay or make a dividend or other distribution (including,
without limitation, any distribution of other or

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<PAGE>

additional stock or other securities or property or options by way of
dividend or spin-off, reclassification, recapitalization or similar corporate
rearrangement) on the Common Stock other than (a) a dividend payable in
additional shares of Common Stock or (b) a regularly scheduled cash dividend
payable out of consolidated earnings or earned surplus, determined in
accordance with generally accepted accounting principles, then, in each such
case, subject to Section 3.3, the Exercise Price in effect immediately prior
to the close of business on the record date fixed for the determination of
holders of any class of securities entitled to receive such dividend or
distribution shall be reduced, effective as of the close of business on such
record date, to a price determined by multiplying such Exercise Price by a
fraction

                           (1) the numerator of which shall be the Current
         Market Price in effect on such record date or, if the Common Stock
         trades on an ex-dividend basis, on the date prior to the commencement
         of ex-dividend trading, less the amount of such dividend or
         distribution (as determined in good faith by the Board of Directors of
         the Company) applicable to one share of Common Stock, and

                           (2) the denominator of which shall be such Current
         Market Price.

                  3.2.2 TREATMENT OF STOCK DIVIDENDS, STOCK SPLITS, ETC. In
case the Company at any time or from time to time after the date hereof shall
declare or pay any dividend on the Common Stock payable in Common Stock, or
shall effect a subdivision of the outstanding shares of Common Stock into a
greater number of shares of Common Stock (by reclassification or otherwise
than by payment of a dividend in Common Stock), then, and in each such case,
the Exercise Price in effect immediately prior to the payment of such
dividend or the consummation of such subdivision shall concurrently with the
effectiveness of such dividend or subdivision be proportionately decreased.

                  3.2.3 ADJUSTMENTS FOR COMBINATIONS, ETC. In case the
outstanding shares of Common Stock shall be combined or consolidated, by
reclassification or otherwise, into a lesser number of shares of Common
Stock, the Exercise Price in effect immediately prior to such combination or
consolidation shall, concurrently with the effectiveness of such combination
or consolidation, be proportionately increased.

         3.3 DE MINIMIS ADJUSTMENTS. If the amount of any adjustment of the
Exercise Price per share required pursuant to this Section 3 would be less
than $.02, such amount shall be carried forward and adjustment with respect
thereto made at the time of and together with any subsequent adjustment
which, together with such amount and any other amount or amounts so carried
forward, shall aggregate a change in the Exercise Price of at least $.02 per
share. All calculations under this Option Agreement shall be made to the
nearest .001 of a cent or to the nearest one-hundredth of a share, as the
case may be.

         3.4 ABANDONED DIVIDEND OR DISTRIBUTION. If the Company shall take a
record of the holders of its Common Stock for the purpose of entitling them
to receive a dividend or other distribution (which results in an adjustment
to the Exercise Price under the terms of this Option Agreement) and shall,
thereafter, and before such dividend or distribution is paid or delivered to
shareholders entitled thereto, legally abandon its plan to pay or deliver
such

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dividend or distribution, then any adjustment made to the Exercise Price and
number of shares of Common Stock purchasable upon exercise of the Langer
Options by reason of the taking of such record shall be reversed, and any
subsequent adjustments, based thereon, shall be recomputed.

         3.5 ADJUSTMENTS TO EXERCISE PRICE AND NUMBER OF SHARES.
Notwithstanding any adjustment in the Exercise Price or in the number or kind
of shares of Common Stock purchasable upon exercise of the Langer Options,
any Option Agreement theretofore or thereafter executed and delivered may
continue to express the same number and kind of shares of Common Stock as are
stated in this Option Agreement, as initially issued.

         3.6 FRACTIONAL SHARES. Notwithstanding any adjustment pursuant to
Section 3 in the number of shares of Common Stock covered by this Option
Agreement or any other provision of this Option Agreement, the Company shall
not be required to issue fractions of shares upon exercise of Langer Options
or to distribute certificates which evidence fractional shares. In lieu of
fractional shares, the Company shall make payment to the Holder, at the time
of exercise of Langer Options as herein provided, in an amount in cash equal
to such fraction multiplied by the Current Market Price of a share of Common
Stock on the date of exercise of Langer Options.

4.       Consolidation, Merger, etc.

         4.1 ADJUSTMENTS FOR CONSOLIDATION, MERGER, SALE OF ASSETS,
REORGANIZATION, ETC. In case the Company after the date hereof (a) shall
consolidate with or merge into any other Person and shall not be the
continuing or surviving corporation of such consolidation or merger, or (b)
shall permit any other Person to consolidate with or merge into the Company
and the Company shall be the continuing or surviving Person but, in
connection with such consolidation or merger, the Common Stock or Other
Securities shall be changed into or exchanged for stock or other securities
of any other Person or cash or any other property, or (c) shall transfer all
or substantially all of its properties or assets to any other Person, or (d)
shall effect a capital reorganization or reclassification of the Common Stock
or Other Securities (other than a capital reorganization or reclassification
resulting in the issue of additional shares of Common Stock for which
adjustment in the Exercise Price is provided in Section 3.2.1), then, and in
the case of each such transaction, proper provision shall be made so that,
upon the basis and the terms and in the manner provided in this Option
Agreement, the Holder of this Option Agreement, upon the exercise of a Langer
Option at any time after the consummation of such transaction, shall be
entitled to receive the kind and amount of shares of stock and other
securities and property receivable upon such consolidation, merger, transfer
or recapitalization, by a holder of the number of securities of the Company
for which a Langer Option might have been exercised immediately prior to such
consolidation, merger, transfer or recapitalization. This provision shall
similarly apply to successive consolidations, mergers or recapitalizations.

         4.2 ASSUMPTION OF OBLIGATIONS. Notwithstanding anything contained in
this Option Agreement to the contrary, the Company shall not effect any of
the transactions described in clauses (a) through (d) of Section 4.1 unless,
prior to the consummation thereof,

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each Person (other than the Company) which may be required to deliver any
stock, securities, cash or property upon the exercise of Langer Options as
provided herein shall assume, by written instrument delivered to, and
reasonably satisfactory to, the Holder of this Option Agreement, (a) the
obligations of the Company under this Option Agreement (and if the Company
shall survive the consummation of such transaction, such assumption shall be
in addition to, and shall not release the Company from, any continuing
obligations of the Company under this Option Agreement) and (b) the
obligation to deliver to the Holder such shares of stock, securities, cash or
property as, in accordance with the foregoing provisions of this Section 4,
the Holder may be entitled to receive.

5.       No Dilution or Impairment.

         The Company shall not, by amendment of its certificate of
incorporation or through any consolidation, merger, reorganization, transfer
of assets, dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the
terms of this Option Agreement, but will at all times in good faith assist in
the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the Holder
against dilution or other impairment. Without limiting the generality of the
foregoing, the Company (a) shall not permit the par value of any shares of
stock receivable upon the exercise of Option Agreement to exceed the amount
payable therefor upon such exercise, (b) shall take all such action as may be
necessary or appropriate in order that the Company may validly and legally
issue fully paid and nonassessable shares of stock, free from all taxes,
liens, security interests, encumbrances, preemptive rights and charges on the
exercise of the Langer Options from time to time outstanding and (c) shall
not take any action which results in any adjustment of the Exercise Price if
the total number of shares of Common Stock (or Other Securities) issuable
after the action upon the exercise of all of the Langer Options would exceed
the total number of shares of Common Stock (or Other Securities) then
authorized by the Company's certificate of incorporation and available for
the purpose of issue upon such exercise.

6.       Registration Rights.

         Reference is hereby made to that certain Registration Rights
Agreement pertaining to the Option Shares dated as of the Commencement Date
(the "REGISTRATION RIGHTS AGREEMENT") between the Company and Holder. Holder
may assign its rights and benefits in, to and under the Registration Rights
Agreement to any Holder in accordance with the terms of such agreement.

7.       Replacement of Securities.

         Upon receipt by the Company of evidence reasonably satisfactory to
it of the loss, theft, destruction or mutilation of this Option Agreement and
of reasonably satisfactory indemnification, the Company shall promptly
execute and deliver to the Holder a new Option Agreement of like tenor and
date. Any such new Option Agreement executed and delivered

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as a result of such loss, theft, mutilation or destruction shall constitute
an additional contractual obligation on the part of the Company.

8.       Registration.

         This Option Agreement, as well as all other Option Agreements issued
pursuant hereto shall be numbered and shall be registered in a register (the
"OPTION REGISTER") maintained at the Company Offices as they are issued. The
Option Register shall list the name, address and Social Security or other
Federal Identification Number, if any, of all Holders. The Company shall be
entitled to treat the Holder as set forth in the Option Register as the owner
in fact of the Langer Options as set forth therein for all purposes and shall
not be bound to recognize any equitable or other claim to or interest in such
Langer Options on the part of any other person, and shall not be liable for
any registration of transfer of Langer Options that are registered or to be
registered in the name of a fiduciary or the nominee of a fiduciary unless
made with the actual knowledge that a fiduciary or nominee is committing a
breach of trust in requesting such registration of transfer, or with such
knowledge of such facts that its participation therein amounts to bad faith.

9.       Transfer.

         9.1 PERMISSIBLE TRANSFEREES. This Option Agreement and the right to
purchase Langer Options evidenced hereby may be transferred, sold, assigned
or hypothecated in whole or in part, at any time, or from time to time,
provided that the Company shall not be required to issue Option Agreements as
a result of any transfer granting the Holder the right to purchase less than
10,000 Option Shares. Any such transfer shall be effected by executing the
form of assignment at the end hereof, and (ii) surrendering this Option
Agreement for cancellation to the Company; whereupon the Company shall issue,
in the name or names specified by Holder a new Option Agreement or Option
Agreements of like tenor and representing in the aggregate rights to purchase
the same number of shares of Common Stock as are purchasable hereunder.

         9.2 TRANSFER OF OPTION. The registered Holder of this Option
Agreement, by its acceptance hereof, agrees that it will not sell, assign,
pledge, hypothecate or otherwise transfer this Option Agreement or the Langer
Options evidenced hereby except (i) pursuant to an effective registration
under the Act and in compliance with applicable state securities laws, (ii)
if the Company receives an opinion of counsel, reasonably satisfactory to the
Company, that such registration is not required and that the sale,
assignment, pledge, hypothecation or transfer is in compliance with
applicable state securities laws; or (iii) to family members of the Holder or
trusts established for the benefit of family members of the Holder.

10.      Exchange.

         This Option Agreement may be exchanged for another Option Agreement
or Option Agreements entitling the Holder thereof to purchase a like
aggregate number of Option Shares as the Langer Options evidenced hereby,
provided the Company shall not be required

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<PAGE>

to issue as a result of any request for exchange an Option Agreement granting
the Holder the right to purchase less than 10,000 Option Shares. A Holder
desiring to exchange this Option Agreement shall make such request in writing
delivered to the Company, and shall surrender this Option Agreement
therewith. Thereupon, the Company shall execute and deliver to the person
entitled thereto a new Option Agreement or Option Agreements, as the case may
be, as so requested.

11.      Notices.

         11.1     In the event of:

                           (1) any taking by the Company of a record of the
         holders of any class of securities for the purpose of determining the
         holders thereof who are entitled to receive any dividend (other than a
         regularly scheduled cash dividend payable out of consolidated earnings
         or earned surplus, determined in accordance with generally accepted
         accounting principles, in an amount not exceeding the amount of the
         immediately preceding cash dividend for such period) or other
         distribution, or any right to subscribe for, purchase or otherwise
         acquire any shares of stock of any class or any other securities or
         property, or to receive any other right, or

                           (2) any capital reorganization of the Company, any
         reclassification or recapitalization of the capital stock of the
         Company, any consolidation or merger involving the Company and any
         other Person, any transaction or series of transactions in which more
         than 50% of the voting securities of the Company are transferred to
         another Person, or any transfer, sale or other disposition of all or
         substantially all the assets of the Company to any other Person, or

                           (3) any voluntary or involuntary dissolution,
         liquidation or winding-up of the Company, then, in either case, the
         Company shall mail to each Holder a notice specifying (i) the date or
         expected date on which any such record is to be taken for the purpose
         of such dividend, distribution or right, and the amount and character
         of such dividend, distribution or right, and (ii) the date or expected
         date on which any such reorganization, reclassification,
         recapitalization, consolidation, merger, transfer, sale, disposition,
         dissolution, liquidation or winding-up is to take place and the time,
         if any such time is to be fixed, as of which the holders of record of
         Common Stock (or Other Securities) shall be entitled to exchange their
         shares of Common Stock (or Other Securities) for the securities or
         other property deliverable upon such reorganization, reclassification,
         recapitalization, consolidation, merger, transfer, dissolution,
         liquidation or winding-up. Such notice shall be mailed at least 15 days
         prior to the date therein specified.

         11.2 In each case of any adjustment or readjustment in the shares of
Common Stock (or Other Securities) issuable upon the exercise of the Langer
Options, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms of this Agreement and prepare a
certificate, signed by the Chairman of the Board,

                                      -8-
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President or one of the Vice Presidents of the Company, and by the Chief
Financial Officer, the Treasurer or one of the Assistant Treasurers of the
Company, setting forth such adjustment or readjustment and showing in
reasonable detail the method of calculation thereof and the facts upon which
such adjustment or readjustment is based, including a statement of the number
of shares of Common Stock outstanding or deemed to be outstanding, and the
Exercise Price in effect immediately prior to such issue or sale and as
adjusted and readjusted (if required by Section 3) on account thereof. The
Company shall forthwith mail a copy of each such certificate to each holder
of a Langer Option and shall, upon the written request at any time of any
holder of a Langer Option, furnish to such holder a like certificate setting
forth the Exercise Price at the time in effect and showing in reasonable
detail how it was calculated. The Company shall also keep copies of all such
certificates at its principal office and shall cause the same to be available
for inspection at such office during normal business hours by any holder of a
Langer Option or any prospective purchaser of a Langer Option designated by
the holder thereof.

         11.3 All notices and other communications hereunder shall be in
writing and shall be deemed given when delivered in person, against written
receipt therefor, or two days after being sent, by registered or certified
mail, postage prepaid, return receipt requested, and, if to the Holder, at
such address as is shown on the Option Register or as may otherwise may have
been furnished to the Company in writing in accordance with this Section by
the Holder and, if to the Company, at the Company Offices or such other
address as the Company shall give notice thereof to the Holder in accordance
with this Section.

12.      Definitions.

         As used herein, unless the context otherwise requires, the following
terms shall have the meanings indicated:

         "CURRENT MARKET PRICE" shall mean, on any date specified herein, the
average of the daily Market Price during the 10 consecutive trading days
commencing 15 trading days before such date, except that, if on any such date
the shares of Common Stock are not listed or admitted for trading on any
national securities exchange or quoted in the over-the-counter market, the
Current Market Price shall be the Market Price on such date.

         "MARKET PRICE" shall mean, on any date specified herein, the amount
per share of the Common Stock, equal to (a) the last reported sale price of
such Common Stock, regular way, on such date or, in case no such sale takes
place on such date, the average of the closing bid and asked prices thereof
regular way on such date, in either case as officially reported on the
principal national securities exchange on which such Common Stock is then
listed or admitted for trading, or (b) if such Common Stock is not then
listed or admitted for trading on any national securities exchange but is
designated as a national market system security by the NASD, the last
reported trading price of the Common Stock on such date, or (c) if there
shall have been no trading on such date or if the Common Stock is not so
designated, the average of the closing bid and asked prices of the Common
Stock on such date as shown by the NASD automated quotation system, or (d) if
such Common Stock is not then listed

                                      -9-
<PAGE>

or admitted for trading on any national exchange or quoted in the
over-the-counter market, the fair value thereof (as of a date which is within
20 days of the date as of which the determination is to be made) determined
in good faith by the Board of Directors of the Company.

         "OTHER SECURITIES" shall mean any stock (other than Common Stock)
and other securities of the Company or any other Person (corporate or
otherwise) which the holders of the Options at any time shall be entitled to
receive, or shall have received, upon the exercise of the Options, in lieu of
or in addition to Common Stock, or which at any time shall be issuable or
shall have been issued in exchange for or in replacement of Common Stock or
Other Securities pursuant to Section 4 or otherwise.

         "PERSON" shall mean any individual, firm, corporation, partnership,
trust, joint venture, association, joint stock company, limited liability
company, unincorporated organization or any other entity or organization,
including a government or agency or subdivision thereof, and shall include
any successor (by merger or otherwise) of such entity.

13.      Miscellaneous.

         13.1 AMENDMENTS. Any amendment or modification of the this Option
Agreement shall require the written consent signed by the party against whom
enforcement of the modification or amendment is sought.

         13.2 HEADINGS. The headings contained herein are for the sole
purpose of convenience of reference, and shall not in any way limit or affect
the meaning or interpretation of any of the terms or provisions of this
Option Agreement.

         13.3 Entire Agreement. This Option Agreement (together with the
other agreements and documents being delivered pursuant to or in connection
with this Option Agreement) constitutes the entire agreement of the parties
hereto with respect to the subject matter hereof, and supersedes all prior
agreements and understandings of the parties, oral and written, with respect
to the subject matter hereof.

         13.4 Binding Effect. This Option Agreement shall inure solely to the
benefit of and shall be binding upon, the Holder and the Company and their
permitted assignees, respective successors, legal representatives and
assigns, and no other person shall have or be construed to have any legal or
equitable right, remedy or claim under or in respect of or by virtue of this
Option Agreement or any provisions herein contained.

         13.5 Governing Law; Jurisdiction. This Option Agreement shall be
governed by and construed and enforced in accordance with the laws of the
State of New York, without giving effect to conflict of laws principles
thereof or the actual domiciles of the parties. The Company and the Holder
hereby agree that any action, proceeding or claim against either of them
arising out of, or relating in any way to the this Option Agreement shall be
brought and enforced in any of the state or federal courts located in the
State of New York and irrevocably submits to such jurisdiction.

                                      -10-
<PAGE>

         13.6 WAIVER, ETC. The failure of the Company or the Holder to at any
time enforce any of the provisions of the this Option Agreement shall not be
deemed or construed to be a waiver of any such provision, nor to in any way
affect the validity of this Option Agreement or the Langer Options or any
provision hereof or the right of the Company or any Holder to thereafter
enforce each and every provision of the this Option Agreement or the Langer
Options. No waiver of any breach, non-compliance or non-fulfillment of any of
the provisions of this Option Agreement shall be effective unless set forth
in a written instrument executed by the party or parties against whom or
which enforcement of such waiver is sought; and no waiver of any such breach,
non-compliance or non-fulfillment shall be construed or deemed to be a waiver
of any other or subsequent breach, non-compliance or non-fulfillment.

         13.7 Interpretation. Any word or term used in this Option Agreement
in any form shall be masculine, feminine, neuter, singular or plural, as
proper reading requires. The words "herein", "hereof", "hereby" or "hereto"
shall refer to this Option Agreement unless otherwise expressly provided. Any
reference herein to a Section shall be a reference to a Section of this
Option Agreement unless the context otherwise requires.

                                            Dated: February 13, 2001

                                            THE LANGER BIOMECHANICS GROUP, INC.

                                            By:   /s/ Daniel J. Gorney
                                                 ---------------------------
                                                 Name:  Daniel J. Gorney
                                                 Title: President and CEO

ATTEST:

 /s/ Thomas G. Archbold
----------------------------------
Name:  Thomas G. Archbold
Title: VP - Finance

                                      -11-
<PAGE>

                                 EXERCISE NOTICE

                                                  Dated:_______________, ____

TO: THE LANGER BIOMECHANICS GROUP, INC.

                  The undersigned hereby irrevocably elects to exercise the
Langer Options to purchase ____ shares of Common Stock, par value $.02 per
share ("Common Stock"), of The Langer Biomechanics Group, Inc. and hereby
makes payment of $________ therefor. The undersigned hereby requests that
certificates for shares issuable pursuant to this exercise be issued and
delivered as follows:

                     INSTRUCTIONS FOR REGISTRATION OF STOCK

              Name:
                   ------------------------------------------------------------
                                         Please type or print in block letters)
              Taxpayer
              Identification
              Number:
                      ---------------------------------------------------------

              Address:
                      ---------------------------------------------------------

                      ---------------------------------------------------------

                      ---------------------------------------------------------

            Signature:
                      ---------------------------------------------------------
                      (Signature must conform in all respects to the name of
                       the Holder as set forth on the face of the Options.)

<PAGE>

                                 ASSIGNMENT FORM

FOR VALUE RECEIVED,
                    ----------------------------------------------------------
                                       (Please type or print in block letters)

hereby sells, assigns and transfers unto:

                 Name:
                      ---------------------------------------------------------
                                        (Please type or print in block letters)
             Taxpayer
       Identification
               Number:
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              Address:
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the right to purchase _____ shares of common stock, par value $.02 per share,
of the Langer Biomechanics Group, Inc. (the "Company") pursuant to the Option
Agreement dated January , 2001, between the undersigned and the Company and
does hereby irrevocably constitute and appoint ___________________________
Attorney-in-Fact, to transfer the same on the books of the Company with full
power of substitution in the premises.

                Dated:
                         ----------------------------------------------

                Signature:
                          -----------------------------------------------------
                          (Signature must conform in all respects to the name
                           of the Holder as set forth on the face of the
                                               Optionss.)<PAGE>

                                                                  EXHIBIT 10.5

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (the "AGREEMENT") is made and
entered into as of February ___, 2001 between The Langer Biomechanics Group,
Inc., a corporation organized under the laws of the State of New York (the
"COMPANY"), and each of the holders indicated on the signature page hereto
(each, a "HOLDER," collectively, the "Holders").

                                 R E C I T A L S

         This Agreement is made in connection with the Option Agreements,
dated as of the date hereof (the "OPTION AGREEMENT"), between the Company and
the Holders, pursuant to which the Holders are acquiring options to purchase
up to 1,400,000 shares of the Common Stock of the Company.

         Unless otherwise defined herein, capitalized terms so used herein
and not defined shall have the same meaning as provided in the Option
Agreement.

         The parties hereby agree as follows:

1.       CERTAIN DEFINITIONS.

         As used in this Agreement, the following terms shall have the
following respective meanings:

                  "BUSINESS DAY" means any day, other than a Saturday, Sunday
or legal holiday, on which banks in the State of New York are open for
business.

                  "COMMON STOCK" means the Common Stock, par value $.02 per
share, of the Company, as constituted on the date hereof, any shares into
which such Common Stock shall have been changed, or any shares resulting from
any reclassification of such Common Stock.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934,
as amended, or any successor statute thereto, and the rules and regulations
of the SEC promulgated thereunder, all as the same shall be in effect at the
time.

                  "HOLDERS" means the Holders referred to in the Preamble,
their respective successors and any other person holding Registrable
Securities to whom these registration rights have been assigned pursuant to
Section 8(f) of this Agreement.

                  "INCIDENTAL REGISTRATION" has the meaning specified in
Section 2(b) of this Agreement.

                  "MAJORITY HOLDERS" means as of any time Holders of at least
50% of the Registrable Securities outstanding at such time.

<PAGE>

                  "PERSON" shall mean an individual, partnership,
corporation, association, trust, joint venture, unincorporated organization
and any government, governmental. department or agency or political
subdivision thereof

                  "REGISTRABLE SECURITIES" means (i) the Common Stock
acquired by any Holder pursuant to the exercise of the Langer Options; (ii)
any Common Stock or other securities issued or issuable with respect to
Common Stock acquired by any Holder pursuant to the exercise of the Langer
Options, upon any stock split, stock dividend, recapitalization, or similar
event and (iii) any securities issued in replacement or exchange of any of
the securities issued in clauses (i) or (ii) above.

                  "REGISTRATION" means an Incidental Registration and a
Requested Registration.

                  "REGISTRATION EXPENSES" means all expenses incident to the
Company's performance of or compliance with this Agreement, including,
without limitation, all registration, filing, listing and National
Association of Securities Dealers, Inc. ("NASD") fees, all fees and expenses
of complying with securities or blue sky laws of the United States, including
without limitation the Securities Laws, all word processing, duplicating and
printing expenses, all messenger and delivery expenses, any stock exchange
fees, any transfer taxes, the fees and expenses of the Company's legal
counsel and independent public accountants, including the expenses of any
special audits or "cold comfort" letters required by or incident to such
performance and compliance, and any fees and disbursements of underwriters
customarily paid by issuers or sellers of securities; provided, however, that
Registration Expenses shall not include underwriting discounts and
commissions.

                  "REGISTRATION STATEMENT" has the meaning specified in
Section 3(a) of this Agreement.

                  "REQUESTED REGISTRATION" has the meaning specified in
Section 2(a) of this Agreement.

                  "SEC" means the United States Securities and Exchange
Commission.

                  "SECURITIES ACT" means the Securities Act of 1933, as
amended, or any successor statute thereto, and the rules and regulations of
the SEC promulgated thereunder, all as the same shall be in effect at the
time.

                  "SECURITIES LAWS" means the Securities Act and the Exchange
Act.

                  "UNDERWRITER'S MAXIMUM NUMBER" means in connection with an
underwritten registration or offering of Registrable Securities or any shares
of the capital stock or other securities of the Company, a specified maximum
number of securities that, in the written opinion of the managing
underwriters, may successfully be included in such registration or offering
due to the dictates of market conditions.

                                      -2-
<PAGE>

2.       REGISTRATION.

         (a) REQUESTED REGISTRATION. At any time after the date hereof and on
or prior to the third anniversary of the date hereof, upon written request by
the Majority Holders to the Company, that the Company effect the registration
under the Securities Act of all or part of the Registrable Securities (a
"REQUESTED REGISTRATION"), the Company will use its best efforts to effect
the registration under the Securities Act of the Registrable Securities which
the Company has been so requested to register by the Holders within one
hundred twenty (120) days after receipt of such request or within sixty (60)
days after receipt of such request with respect to a Requested Registration,
if the Company is qualified to file a registration statement on SEC Form S-3
or any successor or similar short-form registration statement (collectively,
"SEC Form S-3") and the SEC does not subject such registration to a full
review; provided, however, that the Company shall not be obligated to effect
a Requested Registration pursuant to this subdivision (a), (A) unless with
respect to a Requested Registration, the shares to be registered represent at
least two percent (2%) of the Common Stock then outstanding and the
anticipated aggregate offering price of the Registrable Securities to be sold
is at least $2,000,000, in the case of registration on SEC Form S-3, or at
least $5,000,000 in the case of other registrations, or (B) during the 180
day period immediately following the consummation of any previous Requested
Registration pursuant to this Section. Subject to all limitations in the
preceding sentence, the Company must effect no more than three Requested
Registrations pursuant to this subdivision (a) to the extent such Requested
Registrations may be effected on SEC Form S-3, and no more than two Requested
Registrations hereunder other than on SEC Form S-3. Subject to subdivision
(e), the Company may include in such Requested Registration other securities
of the Company for sale, for the Company's account or for the account of any
other person, if there is no underwriter and, if there is an underwriter, if
and to the extent that the managing underwriter determines that the inclusion
of such additional shares will not interfere with the orderly sale of the
underwritten securities at a price range acceptable to the requesting
Holders. Upon receipt of a written request pursuant to this subdivision (a)
the Company shall promptly give written notice of such request to all
Holders, and all Holders shall be afforded the opportunity to join in such
request. The Company will be obligated to include in the Requested
Registration such number of Registrable Securities of any Holder joining in
such request as are specified in a written request by such Holder received by
the Company within 20 days after receipt of such written notice from the
Company.

         (b) INCIDENTAL REGISTRATION. If the Company for itself or any of its
security holders shall at any time or times after the date hereof determine
to register under the Securities Act any shares of its capital stock or other
securities (an "Incidental Registration"), other than: (i) the registration
of an offer, sale or other disposition of securities solely to employees of,
or other persons providing services to, the Company, or any subsidiary
pursuant to an employee or similar benefit plan or where Form S-8, or any
successor form is otherwise available; or (ii) relating to a merger,
acquisition or other transaction of the type described in Rule 145 under the
Securities Act or a comparable or successor rule, registered on SEC Form S-4
or similar or successor forms, the Company will notify each Holder of such
determination at least thirty (30) days prior to the filing of such
registration statement or prospectus, and upon the written request of any
Holder given in writing to the Company within twenty (20) days after the
receipt of such notice, the Company will use its best efforts as soon as
practicable thereafter to cause any of such Holder's Registrable Securities
specified in such

                                      -3-
<PAGE>

Holder's request to be included in such registration statement or prospectus
to the extent such registration is permissible under the applicable
Securities Laws and subject to the conditions of such applicable Securities
Laws. Subject to subdivision (e) any Holders may cause Registrable Securities
to be included in a Registration Statement filed on behalf of the Company, if
there is no underwriter and, if there is an underwriter, if and to the extent
that the managing underwriter determines that the inclusion of such
additional securities will not interfere with the orderly sale of the
underwritten securities at a price range acceptable to the Company.

         (c) EXPENSES. The Company shall pay all Registration Expenses
incurred in connection with any Incidental Registration and any Requested
Registration.

         (d) EFFECTIVE REGISTRATION STATEMENT. A Requested Registration or an
Incidental Registration requested pursuant to Section 2(a) or Section 2(b),
respectively, shall not be deemed to have been effected unless the
Registration Statement relating thereto has become effective with the SEC.
Notwithstanding the foregoing, a Requested Registration or an Incidental
Registration will not be deemed to have been effected if (i) within sixty
(60) days after it has become effective with the SEC, such Requested
Registration or Incidental Registration is interfered with by any stop order,
cease trade order, injunction, or other order or requirement of the SEC or
any other governmental agency or any court proceeding for any reason other
than a misrepresentation or omission by any Holder; or (ii) the conditions to
closing specified in the purchase agreement or underwriting agreement entered
into in connection with such registration are not satisfied, other than
solely by reason of some act or omission by any Holder.

         (e) PRIORITY IN REGISTRATION.

                           (i) If (A) a Requested Registration is an
                  underwritten registration, (B) the Company proposes to include
                  other securities of the Company for sale, for the Company's
                  account or the account of others ("Additional Registrable
                  Securities"), and (C) the managing underwriters shall give
                  written advice to the Company of an Underwriter's Maximum
                  Number with respect to such Requested Registration, which is
                  less than the aggregate number (the "Proposed Included
                  Securities") of the Registrable Securities requested for
                  inclusion by the Holders and such Additional Registrable
                  Securities, then: (w) first, the number of such Additional
                  Registrable Securities which may be included in the Requested
                  Registration shall be reduced by the excess of such Proposed
                  Included Securities over such Underwriter's Maximum Number
                  (such excess being herein called the "Excess Securities"),
                  with the relative priority rights of the Holders of such
                  Additional Securities determined in accordance with their
                  respective Agreements with the Company and (x) second, if such
                  Excess Securities shall exceed the number of such Additional
                  Registrable Securities, such number of the Registrable
                  Securities requested for inclusion by the Holders shall be
                  reduced pro rata among the Holders, on the basis of the number
                  of shares requested to be included therein by the Holders, by
                  an aggregate amount equal to the excess of the Excess
                  Securities over such sum.

                                      -4-
<PAGE>

                           (ii) If an Incidental Registration is an underwritten
                  registration initiated by the Company for its own account, and
                  the managing underwriters shall give written advice to the
                  Company of an Underwriter's Maximum Number with respect to
                  such Incidental Registration, then: (A) the Company shall be
                  entitled to include in such registration that number of
                  securities which the Company proposes to offer and sell for
                  its own account in such registration which does not exceed the
                  Underwriter's Maximum Number; and (B) the Company will be
                  obligated and required to include in such registration that
                  number of shares of Registrable Securities which shall have
                  been requested by the Holders thereof and for the account of
                  others ("ADDITIONAL REGISTRANTS") having registration rights
                  PARRI PASSU with those of the Holders ("ADDITIONAL REGISTRABLE
                  SECURITIES") and which does not exceed the difference between
                  the Underwriter's Maximum Number and that number of securities
                  which the Company is entitled to include therein pursuant to
                  clause (A) above and such number of shares shall be allocated
                  pro rata between the Holders and the Additional Registrants on
                  the basis of the number of shares requested to be included
                  therein by the Holders and the Additional Registrants to the
                  full extent of the remaining portion of the Underwriter's
                  Maximum Number.

                           (iii) If an Incidental Registration is an
                  underwritten registration initiated by the Company pursuant to
                  an agreement (an "Other Reg Rights Agreement") with securities
                  holders of the Company ("OTHER HOLDERS") other than the
                  Holders, and the Holders and/or the Company shall request to
                  include any securities therein, and the managing underwriters
                  shall give written advice to the Other Holders of an
                  Underwriter's Maximum Number with respect to such Incidental
                  Registration which is less than the aggregate number of
                  securities requested for inclusion by the Other Holders, the
                  Holders and the Company, then for purposes of determining the
                  relative priority of the Holders and the Other Holders, on the
                  one hand, and the Company, on the other, the Holders shall be
                  deemed Other Holders and priority shall be determined in
                  accordance with the provisions of the Other Reg Rights
                  Agreement and, for purposes of determining the relative
                  priority between the Holders and the Other Holders, the number
                  of securities which the Holders and the Other Holders would be
                  entitled to include in such Incidental Registration pursuant
                  to such Other Agreements will be allocated among the Holders
                  and the Other Holders in proportion to the number of shares
                  requested to be included therein by the Holders and the Other
                  Holders.

         (f) Notwithstanding anything in paragraphs (a) and (b) of this Section
2, the Company shall have the right to delay any registration of Registrable
Securities requested pursuant to paragraph (a) or (b) of this Section 2 for up
to ninety (90) days if such registration would, in the judgment of the Company's
Board of Directors, substantially interfere with any material transaction being
considered at the time of receipt of the request from the Holders. If the
material transaction being considered by the Company is a public offering of its
securities, the Company shall be permitted to delay the requested registration
only if it is actively engaged in seeking to complete such offering,

                                      -5-
<PAGE>

3.       REGISTRATION AND QUALIFICATION PROCEDURES.

         (a) If and whenever the Company is required to effect the
registration of any Registrable Securities under the Securities Laws as
provided in Section 2, the Company, as expeditiously as possible and subject
to the terms and conditions of Section 2, will:

                           (i) prepare and file in any event within forty-five
                  (45) days after a request for registration has been delivered
                  to the Company or, if the Company is then eligible to use SEC
                  Form S-3, within thirty (30) days after such request has been
                  so delivered, with the SEC the requisite registration
                  statement and prospectus related thereto to effect such
                  Registration (a "Registration Statement") and use its best
                  efforts to cause such Registration Statement to become and
                  remain effective; provided, if at the time of such request the
                  Company does not have available audited financial statements
                  as as required by the Securities Laws, such period shall be
                  extended for such time, up to an additional 45 days, as is
                  required to expeditiously prepare and have audited the
                  requisite financial statements;

                           (ii) permit any Holder which, in the reasonable
                  judgment of the Holder, might be deemed to be an underwriter,
                  promoter or a controlling person of the Company, to
                  participate in the preparation of a Registration Statement and
                  to require the insertion therein of material, reasonably
                  satisfactory to the Company, which in the reasonable judgment
                  of such Holder and its counsel should be included;

                           (iii) prepare and file with the SEC such amendments
                  and supplements to such Registration Statement pursuant to the
                  Securities Laws as may be necessary to keep such Registration
                  Statement effective and to comply with the provisions of the
                  Securities Laws with respect to the disposition of all
                  securities covered by such Registration Statement until the
                  earlier of such time as all of such securities have been
                  disposed of in accordance with the intended methods of
                  disposition by the seller or sellers thereof set forth in such
                  Registration Statement or the expiration of nine months after
                  such Registration Statement becomes effective;

                           (iv) furnish to the Holders (A) such number of
                  conformed copies of such Registration Statement, each
                  preliminary prospectus and summary prospectus and each
                  amendment and supplement thereto (in each case including all
                  exhibits) and any prospectus filed under Rule 424 under the
                  Securities Act, in conformity with the requirements of the
                  Securities Act, and (B) such other documents, as any Holder of
                  Registrable Securities to be sold under such Registration
                  Statement may reasonably request;

                           (v) use its best efforts to register or qualify all
                  Registrable Securities under such other United States state
                  securities or blue sky laws of such jurisdictions as any
                  Holder of Registrable Securities, which are to be sold, shall
                  reasonably request, to keep such registration or qualification
                  in effect, and take any other action which may be reasonably
                  necessary or advisable to enable the Holder of Registrable

                                      -6-
<PAGE>

                  Securities, which are to be sold under such Registration
                  Statement, to consummate the disposition of such Registrable
                  Securities in such jurisdictions, except that the Company
                  shall not for any such purpose be required to (A) qualify
                  generally to do business as a foreign corporation in any
                  jurisdiction wherein it would not but for the requirements of
                  this subdivision (v) be obligated to be so qualified, or (B)
                  subject itself to taxation in any such jurisdiction.

                           (vi) use its best efforts to cause all Registrable
                  Securities covered by a Registration Statement to be
                  registered with or approved by such other United States state
                  agencies or authorities as may be necessary to enable the
                  Holders of Registrable Securities to be sold under such
                  Registration Statement to consummate the intended disposition
                  of such Registrable Securities;

                           (vii) in the event of the issuance of any stop, cease
                  trade or other order suspending the effectiveness of the
                  Registration Statement, or of any order suspending or
                  preventing the use of any related prospectus or suspending the
                  registration of any Registrable Securities included in such
                  Registration Statement for sale in any jurisdiction, the
                  Company shall use its best efforts promptly to obtain the
                  withdrawal of such order;

                           (viii) use it best efforts to furnish to the Holders
                  of Registrable Securities to be sold under such Registration
                  Statement (A) an opinion, dated the effective date of the
                  Registration Statement, of the independent counsel
                  representing the Company for the purposes of such
                  registration, addressed to the underwriters, if any, and to
                  the Holders making such request, stating that such
                  Registration Statement has become effective under applicable
                  Securities Laws and that (1) to the best knowledge of such
                  counsel, no stop, cease trade or other order suspending the
                  effectiveness thereof has been issued and no proceedings for
                  that purpose have been instituted or are pending or
                  contemplated under applicable Securities Laws; (2) the
                  Registration Statement, each preliminary or supplementary
                  prospectus with respect thereto, and each amendment or
                  supplement thereto, comply as to form in all material respects
                  with the requirements of applicable Securities Laws (except
                  that such counsel need express no opinion as to financial
                  statements contained therein); (3) such counsel has no reason
                  to believe that either the Registration Statement, each
                  preliminary or supplementary prospectus with respect thereto,
                  or any amendment or supplement thereto, contains any untrue
                  statement of a material fact or omits a material fact
                  necessary to make the statements therein, in light of the
                  circumstances under which they were made, not misleading; (4)
                  the descriptions in the effective Registration Statement, each
                  supplementary prospectus with respect thereto, or any
                  amendment or supplement thereto, of all legal and governmental
                  matters and contracts and other legal documents or instruments
                  are accurate and fairly present the information required to be
                  shown; and (5) such counsel does not know of any legal or
                  governmental proceedings, pending or contemplated, required to
                  be described in the effective Registration Statement, each
                  supplementary prospectus with respect thereto, or any
                  amendment or supplement thereto, which are not described as
                  required nor of

                                      -7-
<PAGE>

                  any contracts or documents or instruments of a character
                  required to be described in the effective Registration
                  Statement, each supplementary prospectus with respect thereto,
                  or any amendment or supplement thereto or to be filed as
                  exhibits to the effective Registration Statement which are not
                  described and filed as required; and (B) a letter, dated the
                  effective date of the Registration Statement, from the
                  independent certified public accountants of the Company,
                  addressed to the underwriters, if any, and to the Holders
                  making such request, stating that they are independent
                  certified public accountants within the meaning of the
                  Securities Act and that in the opinion of such accountants,
                  the financial statements and other financial data of the
                  Company included in the effective Registration Statement, each
                  supplementary prospectus with respect thereto, or any
                  amendment or supplement thereto, comply as to form in all
                  material respects with the applicable accounting requirements
                  of applicable Securities Laws.

                                    Such opinion of counsel shall additionally
                  cover such legal matters with respect to the registration or
                  qualification in respect of which such opinion is being given
                  as the Holders may reasonably request. Such letter from the
                  independent certified public accountants shall additionally
                  cover such other financial matters (including information as
                  to the period ending not more than five business days prior to
                  the date of such letter) with respect to the registration or
                  qualification in respect of which such letter is being given
                  as the Holders may reasonably request.

                           (ix) immediately notify the Holders of Registrable
                  Securities included in such Registration Statement at any time
                  when a prospectus relating thereto is required to be delivered
                  under applicable Securities Laws, of the happening of any
                  event as a result of which the prospectus included in such
                  Registration Statement, as then in effect, includes an untrue
                  statement of material fact or omits to state any material fact
                  required to be stated therein or necessary to make the
                  statements therein not misleading in the light of the
                  circumstances under which they were made, and at the request
                  of the Holders promptly prepare and furnish to the Holders a
                  reasonable number of copies of a supplement to or an amendment
                  thereof as may be necessary so that, as thereafter delivered
                  to the purchasers of such securities, such prospectus shall
                  not include an untrue statement of a material fact or omit to
                  state a material fact required to be stated therein or
                  necessary to make the statements therein not misleading in the
                  light of the circumstances under which they were made;

                           (x) otherwise use its best efforts to comply with all
                  applicable rules and regulations of the SEC, and make
                  available to its security holders, as soon as reasonably
                  practicable, an earnings statement covering a period of at
                  least twelve months, but not more than eighteen months,
                  beginning with the first full calendar month after the
                  effective date of the Registration Statement, which earnings
                  statement shall satisfy the provisions of Section 11(a) of the
                  Securities Act and Rule 158 thereunder,

                                      -8-
<PAGE>

                           (xi) provide a transfer agent for all Registrable
                  Securities covered by such Registration Statement not later
                  than the effective date of such Registration Statement; and

                           (xii) use its best efforts to list all Registrable
                  Securities covered by such Registration Statement on any
                  securities exchange on which any of the shares of the capital
                  stock of the Company are then listed.

         (b) The Company may require each Holder of Registrable Securities to
be sold under a Registration Statement, at the Company's expense, to furnish
the Company with such information and undertakings as it may reasonably
request regarding such Holder and the distribution of such securities as the
Company may from time to time reasonably request in writing.

         (c) Each Holder, by execution of this Agreement, agrees (A) that
upon receipt of any notice of the Company of the happening of any event of
the kind described in subdivision (a)(ix) of this Section 3, such Holder will
forthwith discontinue its disposition of Registrable Securities pursuant to
the Registration Statement relating thereto until the expiration of any time
limits imposed by applicable Securities Laws and until the receipt by such
Holder of copies of the supplemented or amended prospectus contemplated by
subdivision (a)(ix) of this Section 3 and, if so directed by the Company,
will deliver to the Company all copies other than permanent file copies, then
in possession of the Holder of the prospectus relating to such Registrable
Securities current at the time of receipt of such notice and (B) that Holder
will immediately notify the Company, at any time when a prospectus relating
to the registration or qualification of such Registrable Securities is
required to be delivered under applicable Securities Laws, of the happening
of any event as a result of which information previously furnished by Holder
to the Company for inclusion in such prospectus contains an untrue statement
of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein not misleading in the
light of the circumstances under which they were made. In the event the
Company or any such Holder shall give any such notice, the period referred to
in subdivision (a)(iii) of this Section 3 shall be extended by a number of
days equal to the number of days during the period from and including the
giving of notice pursuant to subdivision (a)(ix) of this Section 3 to and
including the date when such Holder shall have received the copies of the
supplemented or amended prospectus contemplated by subdivision (a)(ix) of
this Section 3.

4.       UNDERWRITTEN OFFERINGS.

         (a) UNDERWRITTEN OFFERINGS. In connection with any underwritten
offering pursuant to a Registration requested under Section 2(a), the Company
and the Holders will enter into an underwriting agreement with the
underwriters for such offering, such agreement to be in form and substance
reasonably satisfactory to all Holders requesting such Registration and such
Holders' underwriters in their reasonable judgment and to contain such
representations and warranties by the Company and such other terms as are
customarily contained in agreements of that type, including, without
limitation, indemnities to the effect and to the extent provided in Section
6. Each such Holder shall be a party to such underwriting agreement and may,
at his option, require that any or all of the representations and warranties
by, and the other agreements on the part of, the Company

                                      -9-
<PAGE>

to and for the benefit of such underwriters shall also be made to and for the
benefit of each such Holder and that any or all of the conditions precedent
to the obligations of such underwriters under such underwriting agreement be
conditions precedent to the obligations of such Holder. No Holder requesting
a Requested Registration or Incidental Registration shall be required to make
any representations or warranties to or agreements with the Company or the
underwriters other than representations, warranties or agreements regarding
such Holder and its intended method of distribution and any other
representation required, or relating to information required, by law.

         (b) SELECTION OF UNDERWRITERS. If a Requested Registration pursuant
to Section 2(a) involves an underwritten offering, then the Company shall
select the underwriter from underwriting firms of national reputation,
subject to the approval of the Holders of a majority of the Registrable
Securities to be included in such registration.

         (c) HOLDBACK AGREEMENTS. Each Holder agrees, if so reasonably
required by the managing underwriter of any firm commitment registered
offering pursuant to Section 2 or by the managing underwriter of any firm
commitment registered offering by the Company of its securities, not to
effect any public sale or distribution of Registrable Securities or sales of
Registrable Securities pursuant to Rule 144 or Rule 144A under the Securities
Act during the seven (7) days prior to and the 180 days after the effective
date of the related Registration Statement if necessary in order to complete
the orderly sale and distribution of the securities distributed in such
offering, except as part of such underwritten registration or offering,
whether or not such Holder participates in such registration or offering.

5.       PREPARATION, REASONABLE INVESTIGATION.

         In connection with the preparation and filing of each Registration
Statement under applicable Securities Laws, the Company will give the Holders
of Registrable Securities, to be sold under such Registration Statement, the
underwriters, if any, and their respective counsel and accountants, drafts
and final copies of such Registration Statement, each preliminary or summary
prospectus with respect thereto and each amendment thereof or supplement
thereto, at least 1 business day prior to the filing thereof with the SEC,
and will give each of them such access to its books and records and such
opportunities to discuss the business of the Company with its officers and
the independent public accountants who have certified its financial
statements as shall be necessary, in the opinion of such Holders and such
underwriters' respective counsel, to conduct a reasonable investigation
within the meaning of the Securities Act.

6.       INDEMNIFICATION AND CONTRIBUTION.

         (a) INDEMNIFICATION BY THE COMPANY. In the event of any registration
under applicable Securities Laws pursuant to Section 2 of any Registrable
Securities, the Company will, and hereby does, indemnify and hold harmless
each Holder of Registrable Securities, to be sold under such Registration
Statement, each such Holder's legal counsel, each other person who
participates as an underwriter in the offering or sale of such securities (if
so required by such underwriter as a condition to including the Registrable
Securities of the Holders in such registration or qualification), such
underwriters' counsel, and each other person, if any, who controls any such
Holder or any such

                                     -10-
<PAGE>

underwriter within the meaning of the Securities Act (collectively, the
"Indemnified Parties"), against any losses, claims, damages or liabilities,
joint or several, to which the Holders, or underwriter or controlling person
may become subject under applicable Securities Laws or otherwise, insofar as
such losses, claims, damages or liabilities (or actions or proceedings,
whether commenced or threatened, in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material
fact contained in any Registration Statement under which such securities were
registered or qualified under applicable Securities laws, any preliminary
prospectus, final prospectus or summary prospectus contained therein or any
document incorporated therein by reference, or any amendment or supplement
thereto, or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or arise out of any violation by the Company of any rule or
regulation promulgated under applicable Securities Laws and relating to
action or inaction required of the Company in connection with any such
registration or qualification, and the Company will reimburse the Indemnified
Parties for any legal or any other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, liability,
action or proceeding; provided, however, that the Company shall not be liable
to any Indemnified Party in any such case to the extent that any such loss,
claim, damage, liability (or action or proceeding in respect thereof) or
expense arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in such Registration
Statement, any such preliminary prospectus, final prospectus, summary
prospectus, amendment or supplement in reliance upon and in conformity with
written information furnished to the Company by such Indemnified Party,
except the Company shall be liable if such untrue statement or omission was
corrected in such Registration Statement, preliminary prospectus, final
prospectus, amendment or supplement and the Company failed to deliver such
corrected document under circumstances in which the obligation to deliver
such corrected document was the responsibility of the Company.

         (b) INDEMNIFICATION BY THE HOLDERS. The Company may require, as a
condition to including any securities of the Company held by any person or
entity in any Registration Statement filed pursuant to Section 2, that the
Company shall have received an undertaking reasonably satisfactory to it from
such person or entity to indemnify and hold harmless (in the same manner and
to the same extent as set forth in subdivision (a) of this Section 6) the
Company, each director of the Company, each officer of the Company, counsel
to the Company, each other person, if any, who controls the Company within
the meaning of applicable Securities Laws, and each underwriter or agent
thereof (for purposes of Section 6(c) these parties shall be considered
"INDEMNIFIED PARTIES"), with respect to any statement or alleged statement in
or omission or alleged omission from such Registration Statement, any
preliminary prospectus, final prospectus or summary prospectus contained
therein, or any amendment or supplement thereto, if, and only if, such
statement or alleged statement or omission or alleged omission was made in
reliance upon and in conformity with information furnished in writing to the
Company directly by such person or entity specifically for use therein;
provided, however, that the obligation of any Holder hereunder shall be
limited to an amount equal to the proceeds received by such Holder upon the
sale of Registrable Securities sold in the offering covered by such
registration.

         (c) NOTICES OF CLAIMS, ETC. Promptly after receipt by an Indemnified
Party of notice of the commencement of any action or proceeding involving a
claim referred to in the preceding

                                     -11-
<PAGE>

subdivisions of this Section 6, such Indemnified Party will, if a claim in
respect thereof is to be made against a party required to provide
indemnification (an "Indemnifying Party"), give written notice to the latter
of the commencement of such action, provided, however, that the failure of
any Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligation under the preceding subdivisions of this
Section 6, except to the extent that the Indemnifying Party is actually
prejudiced by such failure to give notice. In case any such action is brought
against an Indemnified Party, unless in such Indemnified Party's reasonable
judgment a conflict of interest between such Indemnified and Indemnifying
Parties may exist in respect of such claim, the Indemnifying Party shall be
entitled to participate in and to assume the defense thereof, jointly with
any other Indemnifying Party similarly notified to the extent that it may
wish, with counsel reasonably satisfactory to such Indemnified Party, and
after notice from the Indemnifying Party to such Indemnified Party of its
election so to assume the defense thereof, the Indemnifying Party shall not
be liable to such Indemnified Party for any legal or other expenses
subsequently incurred by the latter in connection with the defense thereof
other than reasonable costs of investigation. No Indemnifying Party shall
consent to entry of any judgment or enter into any settlement without the
consent of the Indemnified Party which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified
Party of a release from all liability in respect to such claim or litigation.

         (d) OTHER INDEMNIFICATION. Indemnification similar to that specified
in the preceding subdivisions of this Section 6 (with appropriate
modifications) shall be given by the Company and each Holder of Registrable
Securities included in any Registration Statement with respect to any
required registration or other qualification of securities under any Federal
or state law or regulation of any governmental authority, other than the
Securities Act.

         (e) INDEMNIFICATION PAYMENT. The indemnification required by this
Section 6 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or
expense, loss, damage or liability is incurred.

         (f) SURVIVAL OF OBLIGATIONS. The obligations of the Company and the
Holder under this Section 6 shall survive the completion of any offering of
Registrable Securities under this Agreement.

         (g) CONTRIBUTION. If the indemnification provided for in this
Section 6 is unavailable or insufficient to hold harmless an Indemnified
Party, then each Indemnifying Party shall contribute to the amount paid or
payable to such Indemnified Party as a result of the losses, claims, damages
or liabilities referred to in this Section 6 an amount or additional amount,
as the case may be, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party or parties on the one hand and the
Indemnified Party on the other in connection with the statements or omissions
which resulted in such losses, claims, demands or liabilities as well as any
other relevant equitable considerations. The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Indemnifying
Party or parties on the one hand or the Indemnified Party on the other and
the parties' relative, intent, knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission. The
amount

                                     -12-
<PAGE>

paid to an Indemnified Party as a result of the losses, claims, damages or
liabilities referred to in the first sentence of this Section 6(g) shall be
deemed to include any legal or other expenses reasonably incurred by such
Indemnified Party in connection with investigating or defending any action or
claim which is the subject of this Section 6. 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.

7.       OTHER REGISTRATION RIGHTS.

         The Company represents and warrants that it has not granted any
registration rights to any Person. So long as any of the registration rights
under this Agreement remain in effect, the Company shall not grant to any
Person any registration rights, entitling such Person to a priority in
registration superior to or that of the Holders.

8.       MISCELLANEOUS.

         (a) SPECIFIC PERFORMANCE. The parties hereto acknowledge that there
may be no adequate remedy at law if any party fails to perform any of its
obligations hereunder and that each party may be irreparably harmed by any
such failure, and accordingly agree that each party, in addition to any other
remedy to which it may be entitled at law or in equity, shall be entitled to
compel specific performance of the obligations of any other party under this
Agreement in accordance with the terms and conditions of this Agreement.

         (b) NOTICES. All demands, notices, requests, consents and other
communications required or permitted under this Agreement shall be in writing
and shall be personally delivered or sent by facsimile machine (with a
confirmation copy sent by one of the other methods authorized in this
Section), commercial (including UPS), U.S. Postal Service overnight delivery
service, or, deposited with the U.S. or Postal Service mailed first class,
registered or certified mail, postage prepaid, as set forth below:

         If to the Company, addressed to:

         The Langer Biomechanics Group, Inc.
         450 Commack Road
         Deer Park, New York 11720
         Attn:  President

         with a copy to:

         Kaufman Moomjian, LLC
         Suite 206
         50 Charles Lindbergh Boulevard
         Mitchell Field, New York 11553
         Attention: Gary T. Moomjian, Esq.

                                     -13-
<PAGE>

         If to a Holder, addressed as indicated on the signature page hereto.

Notices shall be deemed given upon the earlier to occur of (i) receipt by the
party to whom such notice is directed; (ii) if sent by facsimile machine, on
the day (other than a Saturday, Sunday or legal holiday in the jurisdiction
to which such notice is directed) such notice is sent if sent (as evidenced
by the facsimile confirmed receipt) prior to 5:00 p.m. Eastern Time and, if
sent after 5:00 p.m. Eastern Time, on the day (other than a Saturday, Sunday
or legal holiday in the jurisdiction to which such notice is directed) after
which such notice is sent; (iii) on the first business day (other than a
Saturday, Sunday or legal holiday in the jurisdiction to which such notice is
directed) following the day the same is deposited with the commercial carrier
if sent by commercial overnight delivery service; or (iv) the fifth day
(other than a Saturday, Sunday or legal holiday in the jurisdiction to which
such notice is directed) following deposit thereof with the U.S. Postal
Service as aforesaid. Each party, by notice duly given in accordance
therewith may specify a different address for the giving of any notice
hereunder.

         (c) GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the internal laws of the State of New York, without regard
to conflicts of law principles thereof.

         (d) HEADINGS. The descriptive headings of the several sections and
paragraphs of this Agreement are inserted for convenience only, and do not
constitute a part of this Agreement and shall not affect in any way the
meaning or interpretation of this Agreement.

         (e) ENTIRE AGREEMENT; AMENDMENTS. This Agreement and the other
writings referred to herein or delivered pursuant hereto which form a part
hereof contain the entire understanding of the parties with respect to its
subject matter. This Agreement supersedes all prior agreements and
understandings between the parties with respect to its subject matter. This
Agreement may be amended and the observance of any term of this Agreement may
be waived (either generally or in a particular instance and either
retroactively or prospectively) only by a written instrument duly executed by
the Company and those Holders holding a majority of Registrable Securities.
Each Holder of any Registrable Securities at the time or thereafter
outstanding shall be bound by an amendment or waiver authorized by this
Section 9(e), whether or not any such Registrable Securities shall have been
marked to indicate such consent.

         (f) ASSIGNABILITY. This Agreement and all of the provisions hereof
will be assigned, without the consent of the Company, by any Holder to, and
shall inure to the benefit of, any purchaser, transferee or assignee of any
Registrable Security, unless the Holder specifies otherwise in connection
with particular transfers of Registrable Securities. However, the Company
shall not be required to recognize any such purchaser, transferee or assignee
as a Holder under this Agreement unless and until either (i) such person
becomes the holder of record of Registrable Securities or (ii) the Company
receives written notice of such purchase, transfer or assignment.

                                     -14-
<PAGE>

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

                                     -15-
<PAGE>

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

                                          THE LANGER BIOMECHANICS GROUP, INC.

                                          By:
                                             ----------------------------------
                                               Name:
                                                     --------------------------
                                               Title:
                                                     --------------------------

                                          HOLDERS:

                                                 ------------------------------

                                     -16-

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