Document:

Exhibit
4.2

CUSIP NO.: 47102 XAD 7
No. 1

5.875% Notes due
2011

$275,000,000

JANUS
CAPITAL GROUP INC.

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED IN WHOLE OR IN PART FOR
NOTES IN DEFINITIVE REGISTERED FORM, THIS CERTIFICATE MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE THEREOF OR BY A NOMINEE
THEREOF TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR OF THE DEPOSITARY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITARY.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE
ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY, ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

Janus
Capital Group Inc., a Delaware corporation (herein referred to as the “Company”,
which term includes any successor corporation under the Indenture hereinafter
defined), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of $275,000,000 on September 15, 2011
(the “Maturity Date”) and to pay interest thereon from September 18,
2006, or from the most recent Interest Payment Date (hereinafter defined) to
which interest has been paid or duly provided for, semiannually on March 15 and
September 15 of each year (each, an “Interest Payment Date”),
commencing March 15, 2007, at 5.875% per annum until the principal hereof is
paid or duly provided for.

Any
payment of principal or interest required to be made on a day that is not a
Business Day need not be made on such day, but may be made on the next
succeeding Business Day with the same force and effect as if made on such day
and no interest shall accrue as a result of such delayed payment.  Interest payable on each Interest Payment
Date will include interest accrued from and including September 18, 2006, or
from and including the most recent Interest Payment Date to which interest has
been paid or duly provided for, as the case may be, to but excluding such
Interest Payment Date.

The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date
will, as provided in the Indenture, be paid to the person (the “Holder”)
in whose name this Note (or one or more predecessor Securities) is registered
at the close of business on the March 1 and September 1 (whether or not a Business
Day) immediately preceding such Interest Payment Date (each, a “Regular
Record Date”).  Any such interest not
so 

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punctually paid or duly provided for (“Defaulted Interest”) will
forthwith cease to be payable to the Holder on such Regular Record Date and may either (1) be paid to
the Person in whose name this Note is registered at the close of
business on a special record date (the “Special Record Date”) for the
payment of such Defaulted Interest to be fixed by the Trustee (referred to
herein), notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefore having been given
to the Holder of this Note not less than ten days prior to such Special Record
Date, or (2) be paid at any time in any other lawful manner, all as more
fully provided in the Indenture.

For
purposes of this Note, “Business Day” means each Monday, Tuesday,
Wednesday, Thursday and Friday that is not a day on which banking institutions
in the city of New York, New York are authorized or obligated by law or
executive order to close.

Payment of the principal of this Note on the Maturity Date
will be made against presentation of this Note at the office or agency of the Company
maintained for that purpose in the Borough of Manhattan, the City of New York,
in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of
public and private debts.  So long as
this Note remains in book-entry form, all payments of principal and interest
will be made by the Company in immediately available funds.

General.  This Note is one of a duly
authorized issue of securities (herein called the “Securities”) of the
Company, issued under an Indenture, dated as of November 6, 2001 (the “Indenture”), between the Company
(formerly known as Stilwell Financial Inc.) and JPMorgan Chase Bank, N.A. (as
successor to The Chase Manhattan Bank), a New York banking corporation, as trustee (herein
called the “Trustee,” which term includes any successor trustee under the Indenture with
respect to a series of which this Note is a part).  Reference
is made to the Indenture, all indentures supplemental thereto and the officers’
certificate setting forth the terms of the Notes (hereinafter defined), dated September 18, 2006, for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  This Note
is one of a duly authorized series of Securities designated as “5.875% Notes
due 2011” (collectively, the “Notes”).

Events of Default.  If an
Event of Default with respect to the Notes shall have occurred and be continuing, the principal of the Notes may be declared due and
payable in the manner and with the effect provided in the Indenture.

Modification
and Waivers; Obligations of the Company Absolute.  The Indenture permits the amendment thereof and the modification of the
rights and obligations of the Company and the rights of the Holders of the Notes, subject to
certain exceptions set forth in the Indenture. 
Such amendments may be
effected under the Indenture at any time with the consent of the Holders of not less than a majority in principal
amount of all Notes then Outstanding issued under the Indenture and affected thereby, subject to certain exceptions
set forth in the Indenture.  The Indenture also contains provisions permitting
the Holders of not less than a majority in principal amount of the Notes at the time
Outstanding, on behalf of the Holders of all Notes at such time Outstanding, to waive compliance by the Company 

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with certain provisions of the Indenture. 
Furthermore, provisions in the Indenture permit the Holders of not less
than a majority in principal amount
of the Notes then Outstanding to waive on behalf of all of the Holders of such
Notes certain past defaults under the Indenture and their consequences.  Any such consent or waiver shall be conclusive
and binding upon the Holder of this Note and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note.

No reference herein to the Indenture and no provision of
this Note or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and
interest on this Note at the times, place and rate, and in the coin or currency
herein prescribed.

Defeasance and Covenant Defeasance.  The
Indenture contains provisions for defeasance at any time of (a) the entire
indebtedness of the Company on this Note and (b) certain restrictive covenants
and the related defaults and Events of Default, upon compliance by the Company
with certain conditions set forth therein, which provisions apply to this Note.

Authorized Denominations.  The Notes
are issuable only in registered form without coupons in denominations of $1,000
or any integral multiple of $1,000.

Registration of Transfer or Exchange.  As provided
in the Indenture and subject to certain limitations herein and therein set
forth, the transfer of this Note is registrable in the Security Register upon
presentation of this Note for registration of transfer at the office or agency
of the Company in any place where the principal of and interest on this Note
are payable, duly endorsed by or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Notes, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

As provided in the Indenture and subject to certain
limitations herein and therein set forth, the Notes are exchangeable for a like
aggregate principal amount of Notes of different authorized denominations, as
requested by the Holders surrendering the same.

This Note is a Global Security.  If the depositary with respect to the Notes
(which shall initially be DTC) is at any time unwilling, unable or ineligible
to continue as depositary and a successor depositary is not appointed by the
Company within 90 days, the Company will issue Notes in definitive registered
form without coupons, in any authorized denominations, of like tenor, in an
aggregate principal amount equal to the principal amount of the Registered
Securities in global form (the “Registered Global Note”), in exchange
for such Registered Global Note(s).  In
addition, the Company may at any time and in its sole discretion determine that
the Notes will no longer be represented by Registered Global Notes and, in such
event, will issue Notes in definitive registered form, in such tenor, in any
authorized denominations and in an aggregate principal amount equal to the
principal amount of the Registered Global Notes representing such Notes, in
exchange for such Registered Global Notes. 
In any such instance, an owner of a beneficial interest in a Registered
Global Note will be entitled to physical delivery in definitive 

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registered form of Notes
equal in principal amount to such beneficial interest and to have such Notes
registered in its name.  Notes so issued
in definitive registered form will be issued in denominations of $1,000 or
any amount in excess thereof which is an integral multiple of $1,000 and will
be issued in registered form only, without coupons.

No service charge shall be made for any such registration
of transfer or exchange, but the Company or the Trustee may require payment of
a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

Prior to due presentment of this Note for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Holder as the owner hereof for all purposes, whether or not this
Note be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary.

Defined Terms.  Unless
otherwise defined in this Note, all capitalized terms used in this Note shall
have the meanings assigned to them in the Indenture.

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

Unless the certificate of authentication hereon has
been executed by the Trustee by manual signature, this Note shall not be
entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

* * * * * *

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IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed as of the date hereof.

	
  Dated: September 18, 2006

  	
  JANUS CAPITAL GROUP INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David R. Martin

  
	
   

  	
   

  	
  Name:

  	
  David R. Martin

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and 

  Chief Financial Officer

  

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

This is one of the Securities
referred to in the 

within-mentioned Indenture

	
  JPMORGAN CHASE BANK, N.A., 

  as Trustee

  
	
   

  
	
   

  
	
  By:

  	
  /s/ James D. Heaney

  	
   

  
	
   

  	
  Authorized
  Officer

  

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ASSIGNMENT
FORM

To assign this
Note, fill in the form below: (I) or (we) assign and transfer this Note to

 

 

(Insert
assignee’s soc. sec. or tax I.D. no.)

 

	
  

  
	
   

  
	
   

  
	
  (Print or type assignee’s
  name, address and zip code)

  

 

	
  and irrevocably appoint 

  	
   

  

to transfer this Note on
the books of Janus Capital Group Inc. 
The agent may substitute another to act for him.

 

	
  

  
	
   

  
	
  Date:

  	
   

  	
   

  

 

 

	
  

  	
  Your Signature:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the face 

  of this Note)

  
	
   

  	
   

  
	
   

  	
  Signature guarantee:Exhibit 10.1

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT (the “Agreement”),
dated as of September 18, 2006 (the “Commencement Date”), between Langer, Inc.,
a Delaware corporation (the “Company”), and Sara Cormack (the “Employee”).

W I T N E S S E T H :

WHEREAS, the Company desires to
employ the Employee and to be assured of the Employee’s services on the terms
and conditions hereinafter set forth; and

WHEREAS, the Employee is willing
to accept such employment on such terms and conditions.

NOW THEREFORE, in consideration
of the mutual covenants and agreements set forth in this Agreement, the Company
and the Employee hereby agree as follows:

1.    Term.

The
term of this Agreement shall commence on the Commencement Date and shall expire
on the third anniversary of Commencement Date (the “Term”), subject to earlier
termination as provided herein.

2.    Duties.

(a)          During the Term of this Agreement, the
Employee shall serve as the Chief Financial Officer of the Company, or in such
other executive capacity as may be assigned to the Employee, and shall perform
all duties commensurate with the Employee’s position and as may be assigned to
the Employee by the Chairman of the Board of Directors or the Chief Executive
Officer of the Company or such other person(s) as may be designated by the
Board of Directors of the Company (the “Board”). The Employee shall devote the
Employee’s full business time and energies to the business and affairs of the
Company and shall use the Employee’s best efforts, skills and abilities to
promote the interests of the Company, and to diligently and competently perform
the duties of the Employee’s position.

(b)  The Employee shall report to the Chairman of
the Board or the Chief Executive Officer or such other person(s) as may be
designated by the Board and shall at all times keep the Chairman of the Board
and the Chief Executive Officer (or such other officer as the Chairman of the
Board, the Chief Executive Officer or the Board may designate from time to
time) promptly and fully informed (in writing if so requested) of the Employee’s
conduct and of the business or affairs of the Company, and provide such
explanations of the Employee’s conduct as may be required.

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3.    Compensation, Bonus, Stock Options, Benefits, etc.

(a)          Salary.   During the Term of this Agreement, the
Company shall pay to the Employee, and the Employee shall accept from the
Company, as compensation for the performance of services under this Agreement
and the Employee’s observance and performance of all of the provisions hereof,
an annual salary at the rate of $225,000 (the “Base Compensation”).  The Base Compensation shall be payable in
accordance with the normal payroll practices of the Company and shall be
subject to withholding for applicable taxes and other amounts. The Employee’s
performance and the Base Compensation shall be subject to annual review by the
Company.

(b)         Bonus.  In addition to the Base Compensation
described above, the Employee shall, in the sole and absolute discretion of the
Compensation Committee of the Board, be entitled to performance bonuses which
may be based upon a variety of factors, including the Employee’s performance
and the achievement of Company goals, all as determined in the sole and
absolute discretion of the Board or Compensation Committee of the Board.  Any bonus paid to the Employee shall be
subject to withholding for applicable taxes and other amounts. In addition, the
Employee may be entitled to participate in such other bonus plans, whether
during the term of this Agreement as the Compensation Committee of the Board
may, in its sole and absolute discretion, determine.

(c)           Stock Options.
The Company shall issue and grant to Employee, under the Company’s 2005 Stock
Incentive Plan (the “Plan”), options to purchase 100,000 shares of the Company’s
common stock (“Common Stock”) having an exercise price equal to the closing
price of the Common Stock on the date of grant, of which (i) 33,333 shall
vest on the second anniversary of the Commencement Date; (ii) 33,333 shall
vest on the third anniversary of the Commencement Date; and (iii) 33,334
shall vest on the fourth anniversary of the Commencement Date.  During the Term of this Agreement the
Employee agrees not to sell, pledge, hypothecate or otherwise transfer the
Common Stock issuable upon the exercise of each tranche of options identified
above within a one year period after vesting of such tranche without the
consent of the Board of Directors. The terms and provisions of such options
shall be set forth in a stock option agreement in a form satisfactory to the
Company and consistent with the Company’s standard form of stock option
agreement under the Plan.   In addition,
the Employee may be entitled, during the term of this Agreement, to receive
such additional options, at such exercise prices and other terms as the
Compensation Committee of the Board may, in its sole and absolute discretion,
determine.

(d)           Benefits.  During the Term of this Agreement, the
Employee shall be entitled to participate in or benefit from, in accordance
with the eligibility and other provisions thereof, the Company’s medical
insurance and other fringe benefit plans or policies as the Company may make
available to, or have in effect for, its senior executive officers from time to
time.  The Company and its affiliates
retain the right to terminate or alter any such plans or policies from time to
time.  The Employee shall also be
entitled to four weeks’ paid vacation each year, sick leave and other similar
benefits in accordance with policies of the Company from time to time in effect
for its senior executive officers.

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(e)           Reimbursement of Business
Expenses.  During the Term
of this Agreement, upon submission of proper invoices, receipts or other
supporting documentation reasonably satisfactory to the Company and in
accordance with and subject to the Company’s expense reimbursement policies,
the Employee shall be reimbursed by the Company for all reasonable business
expenses actually and necessarily incurred by the Employee on behalf of the
Company in connection with the performance of services under this Agreement.

4.    Representations of Employee.

(a)          The Employee represents and warrants
that the Employee is not party to, or bound by, any agreement or commitment, or
subject to any restriction, including but not limited to agreements related to
previous employment containing confidentiality or noncompetition covenants,
which presently has or may in the future have a possibility of adversely
affecting the business of the Company or the performance by the Employee of the
Employee’s duties under this Agreement.

(b)         During the Term and the Severance
Period (as defined in Section 7(f)), if any, the Employee agrees that the
Employee will not offer
for sale, sell, pledge, assign, hypothecate or otherwise create any interest in
or dispose of (or enter into any transaction or device that is designed to, or
could reasonably be expected to, result in any of the foregoing) any shares of
Common Stock owned by the Employee on the Commencement Date or any shares of
Common Stock owned or acquired by him after the Commencement Date upon the
conversion or exercise of options or any securities convertible into or
exercisable or exchangeable for Common Stock, without first notifying
the Board in writing to inquire as to whether there exist any facts or circumstances
that would make it inadvisable for the Company if the Employee engaged in such
transaction.

(c)           The representations, warranties and
covenants of this Section 4 shall survive termination of the Employee’s
employment hereunder and the expiration of the Term hereof.

5.             Confidentiality,
Noncompetition, Nonsolicitation and Non-Disparagement.

For
purposes of this Section 5, all references to the Company shall be deemed to
include the Company’s affiliates and subsidiaries and their respective
subsidiaries, whether now existing or hereafter established or acquired.  In consideration for the compensation and
benefits provided to the Employee pursuant to this Agreement, the Employee
agrees with the provisions of this Section 5.

(a)          Confidential Information.  (i) 
The Employee acknowledges that as a result of the Employee’s retention
by the Company, the Employee has and will continue to have knowledge of, and
access to, proprietary and confidential information of the Company, including,
without limitation, research and development plans and results, software,
databases, technology, inventions, trade secrets, technical information,
know-how, plans, specifications, methods of operations, product and service
information, product and service availability, pricing information (including
pricing strategies), financial, business and marketing information and 

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plans, and the
identity of customers, clients and suppliers (collectively, the “Confidential
Information”), and that the Confidential Information, even though it may be
contributed, developed or acquired by the Employee, constitutes valuable,
special and unique assets of the Company developed at great expense which is
the exclusive property of the Company. 
Accordingly, the Employee shall not, at any time, either during or
subsequent to the Term of this Agreement, use, reveal, report, publish,
transfer or otherwise disclose to any person, corporation or other entity, any
of the Confidential Information without the prior written consent of the
Company, except to responsible officers and employees of the Company and other
responsible persons who are in a contractual or fiduciary relationship with the
Company and who have a need for such Confidential Information for purposes in
the best interests of the Company, and except for such Confidential Information
which is or becomes of general public knowledge from authorized sources other
than the Employee.

(ii) The Employee acknowledges that the Company
would not enter into this Agreement without the assurance that all the Confidential
Information will be used for the exclusive benefit of the Company.

(b)         Return of Confidential
Information.  Upon the
termination of this Agreement or upon the request of the Company, the Employee
shall promptly return to the Company all Confidential Information in the
Employee’s possession or control, including but not limited to all drawings,
manuals, computer printouts, computer databases, disks, data, files, lists,
memoranda, letters, notes, notebooks, reports and other writings and copies thereof
and all other materials relating to the Company’s business, including without
limitation any materials incorporating Confidential Information.

(c)          Inventions, etc.  During the Term and for a period of one year
thereafter, the Employee will promptly disclose to the Company all designs,
processes, inventions, improvements, developments, discoveries, processes,
techniques, and other information related to the business of the Company
conceived, developed, acquired, or reduced to practice by the Employee alone or
with others during the Term of this Agreement, whether or not conceived during
regular working hours, through the use of Company time, material or facilities
or otherwise (“Inventions”).

The
Employee agrees that all copyrights created in conjunction with the Employee’s
service to the Company and other Inventions, are “works made for hire” (as that
term is defined under the Copyright Act of 1976, as amended).  All such copyrights, trademarks, and other
Inventions shall be the sole and exclusive property of the Company, and the
Company shall be the sole owner of all patents, copyrights, trademarks, trade
secrets, and other rights and protection in connection therewith.  To the extent any such copyright and other
Inventions may not be works for hire, the Employee hereby assigns to the
Corporation any and all rights the Employee now has or may hereafter acquire in
such copyrights and any other Inventions. 
Upon request the Employee shall deliver to the Company all drawings,
models and other data and records relating to such copyrights, trademarks and
Inventions. The Employee further agrees, as to all such Inventions, to assist
the Company in every proper way (but at the Company’s expense) to obtain,
register, and from time to time enforce patents, copyrights, trademarks, trade
secrets, and other rights and protection relating to said Inventions in and all
countries, and to that 

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end the Employee
shall execute all documents for use in applying for and obtaining such patents,
copyrights, trademarks, trade secrets and other rights and protection on and
enforcing such Inventions, as the Company may desire, together with  any assignments thereof to the Company or
persons designated by it.  Such
obligation to assist the Company shall continue beyond the termination of the
Employee’s service to the Company, but the Company shall compensate the
Employee at a reasonable rate after termination of service for time actually
spent by the Employee at the Company’s request for such assistance.  In the event the Company is unable, after
reasonable effort, to secure the Employee’s signature on any document or
documents needed to apply for or prosecute any patent, copyright, trademark,
trade secret, or other right or protection relating to an Invention, whether
because of the Employee’s physical or mental incapacity or for any other reason
whatsoever, the Employee hereby irrevocably designates and appoints the Company
and the its duly authorized officers and agents as the Employee’s agent coupled
with an interest and attorney-in-fact, to act for and in the Employee’s behalf
and stead to execute and file any such application or applications and to do
all other lawfully permitted acts to further the prosecution and issuance of
patents, copyrights, trademarks, trade secrets, or similar rights or protection
thereon with the same legal force and effect as if executed by the Employee.

(d)           Non-competition.  The Employee will not utilize the Employee’s
special knowledge of the business operations of the Company or its customers,
suppliers and others to compete with the Company.  During the Term of this Agreement and
(i) for a period of (A) one year after the termination of this
Agreement pursuant to Sections 7(a), 7(b) or 7(e) hereof, as applicable; or
(B) in the event of termination pursuant to Section 7(c), the duration of
the Severance Period (as defined in Section 7(f)); or (ii) in the event
the Agreement is not renewed, the Severance Period, if any; the Employee shall
not engage, directly or indirectly, or have an interest, directly or
indirectly, anywhere in the United States of America or any other geographic
area where the Company does business or in which its products or services are
marketed, alone or in association with others, as principal, officer, agent,
Employee, director, partner or stock­holder (except with respect to the
Employee’s employment by the Company), or through the invest­ment of capital,
lending of money or property, rendering of services or otherwise, in any
business competitive with or substantially similar to that engaged in by the
Company during the Term of this Agreement (it being understood hereby, that the
ownership by the Employee of five percent (5%) or less of the stock of any
company listed on a national securities exchange shall not be deemed a violation
of this Section 5).

(e)           Non-solicitation.  During the Term of this Agreement and
(i) for a period of (A) one year after the termination of this
Agreement pursuant to Sections 7(a), 7(b) or 7(e) hereof, as applicable; or
(B) in the event of termination pursuant to Section 7(c), the duration of
the Severance Period (as defined in Section 7(f)); or (ii) in the event
the Agreement is not renewed, the Severance Period, if any; the Employee shall
not, and shall not permit any of the Employee’s employees, agents or others
under the Employee’s control to, directly or indirectly, on behalf of the
Employee or any other person, (i) call upon, accept competitive business
from, or solicit the competitive business of any individual or entity who is,
or who had been at any time during the preceding two years, a customer of the
Company or any successor to the business of the

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 Company, or otherwise divert or attempt to
divert any business from the Company or any such successor, or
(ii) directly or indirectly recruit or otherwise solicit or induce any
person who is an Employee of, or otherwise engaged by, the Company or any
successor to the business of the Company to terminate such person’s employment
or other relationship with the Company or such successor, or hire or enter into
any business with any person who is employed by, or who has left the employ of,
the Company or any such successor during the preceding two years.  The Employee shall not at any time, directly
or indirectly, use or purport to authorize any person to use any name, mark,
logo, trade dress or other identifying words or images which are the same as or
similar to those used at any time by the Company in connection with any product
or service, whether or not such use would be in a business competitive with that
of the Company.  Any breach or violation
by the Employee of the provisions of this Section 5 shall toll the running of
any time periods set forth in this Section 5 for the duration of any such
breach or violation.

(f)            Non-Disparagement.           The
Employee shall not at any time, directly or indirectly, take any action
(whether orally or in writing or otherwise) which has or may be expected to
have the effect of disparaging the Company or any of its subsidiaries or
affiliates or their directors, officers or executives or their respective
reputations, in­cluding, but not limited to, their business models, practices,
relationships, internal work­ings, financial condition or operations, in any
manner whatsoever at any time.

6.    Remedies.
The restrictions set forth in Section 5 are considered by the parties to be
fair and reasonable.  The Employee
acknowledges that the restrictions contained in Section 5 will not prevent him
from earning a livelihood.  The Employee
further acknowledges that the Company would be irreparably harmed and that
monetary damages would not provide an adequate remedy in the event of a breach
of the provisions of Section 5. 
Accordingly, the Employee agrees that, in addition to any other remedies
available to the Company, the Company shall be entitled to injunctive and other
equitable relief to secure the enforcement of these provisions, and shall be
entitled to receive reimbursement from the Employee for all reasonable
attorneys’ fees and expenses incurred by the Company in enforcing these provisions.  In connection with seeking any such equitable
remedy, including, but not limited to, an injunction or specific performance,
the Company shall not be required to post a bond as a condition to obtaining
such remedy.  If any provisions of
Sections 5 or 6 relating to the time period, scope of activities or geographic
area of restrictions is declared by a court of competent jurisdiction to exceed
the maximum permissible time period, scope of activities or geographic area,
the maximum time period, scope of activities or geographic area, as the case
may be, shall be reduced to the maximum which such court deems enforceable. If
any provisions of Sections 5 or 6 other than those described in the preceding
sentence are adjudicated to be invalid or unenforceable, the invalid or
unenforceable provisions shall be deemed amended (with respect only to the
jurisdiction in which such adjudication is made) in such manner as to render
them enforceable and to effectuate as nearly as possible the original
intentions and agreement of the parties. 
For purposes of this Section 6, all references to the Company shall be
deemed to include the Company’s affiliates and subsidiaries, whether now
existing or hereafter established or acquired.

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7.    Termination;
Non-renewal.   This
Agreement may be terminated prior to the expiration of the Term set forth in
Section 1 upon the occurrence of any of the events set forth in, and subject to
the terms of, this Section 7.

(a)           Death or Permanent
Disability.  If the
Employee dies or becomes permanently disabled, this Agreement shall terminate
effective at the end of the calendar month during which the Employee’s death
occurs or when the Employee’s disability is deemed to have become
permanent.  If the Employee is unable to
perform the Employee’s normal duties for the Company because of illness or
incapacity (whether physical or mental) for 45 consecutive days during the Term
of this Agreement, or for 60 days (whether or not consecutive) out of any
calendar year during the Term of this Agreement, the Employee’s disability
shall be deemed to have become permanent. 
If this Agreement is terminated on account of the death or permanent dis­abi­lity
of the Employee, then the Employee or its estate shall be entitled to receive
accrued Base Compensation through the date of such termination and the Employee
and the Employee’s estate shall have no further entitlement to Base
Compensation, bonus, or benefits, except in the case of the Employee’s death,
the proceeds of the Life Insurance, from the Company following the effective
date of such termination.

(b)           Cause.  This Agreement may be terminated at the
Company’s option, immediately upon written notice to the Employee, upon:
(i) the Employee’s commission of a misdemeanor or felony that, in the
Board’s reasonable judgment, adversely affects the Company’s or any of the
Company’s affiliates’ reputation, business or interests, or the ability of the
Employee to perform the Employee’s duties as an employee of the Company;  (ii) the Employee’s act of fraud or
dishonest act upon, or misappropriation of funds of, the Company or any of the
Company’s affiliates;  (c) the
Employee’s gross negligence, willful or intentional act or omission in the
performance of the Employee’s duties under this Agreement as determined by the
Board;  (d) the Employee’s disregard
of a lawful direction of the Board or the executive officer to whom the
Employee reports;  (e) the Employee’s
appropriation for himself of a Company cor­porate opportunity without the
express prior written consent of the Board; 
(f) the Employee’s material breach of any of the Employee’s
obligations under this Agreement (other than Section 5 of this Agreement) that
continues unremedied for 14 days following the Employee’s receipt of written
notice from the Board thereof; 
(g) the Employee’s breach of any of the Employee’s obligations of
any of the provisions of Section 5 of this Agreement; or (h) the Employee
is convicted of a felony. If this Agreement is terminated by the Company for
cause, then the Employee shall be entitled to receive accrued Base Compensation
through the date of such termination.

(c)           Without Cause.  This Agreement may be terminated, at any time
by the Company without cause immediately upon giving written notice to the
Employee of such termination.  In such
event, the Company shall continue to pay to the Employee the Base Compensation
in accordance with the normal payroll practices of the Company for a period of
six months commencing with the effective date of any termination pursuant to
this Section 7(c), provided, however, Employee’s right to receive any such
payment shall be subject to the Employee complying with the terms of this
Agreement.  Additionally, the Company
shall have the right, at its election if made on or before the time of termination,
to continue to pay the Employee the Base Compensation for an additional period
of up to six months, and if the 

 7
 

 

Company so elects,
the Employee shall be bound by the provisions of Sections 5(d) and 5(e) of this
Agreement for such additional period.   
Notwithstanding the foregoing, no amount shall be payable to the
Employee pursuant to this Paragraph 7(c) unless (i) such Employee’s
termination of employment is a separation from service (within the meaning of
Section 409A of the Internal Revenue Code and the regulations thereunder), and
(ii) the amount payable to the Employee pursuant to this Paragraph 7(c)
shall not exceed two times the lesser of (A) the sum of the Employee’s
compensation (as defined in Treasury Regulation Section 1.415-1(d)(2)) for
services provided to the Company as an employee for the calendar year preceding
the calendar year in which the Employee has a separation from service, or (B)
the maximum amount that may be taken into account under a qualified plan
pursuant to Section 401(a)(17) of the Internal Revenue Code for such year.

(d)           Non-renewal.  In the event the Company fails to renew or
extend the Term, the Company shall have the right, at its election, to continue
to pay the Employee the Base Compensation for an additional period of up to one
year after the expiration of the Term, and if the Company so elects, the
Employee shall be bound by the provisions of Sections 5(d) and 5(e) of this
Agreement for such additional period, provided, however, Employee’s right to
receive any such payment shall be subject to the Employee complying with the
terms of this Agreement.  Any such
election shall be made in writing at least 90 days prior to the expiration of
the Term and shall specify the length of such additional period.

(e)           By Employee.  The Employee may terminate the Agreement at
anytime upon providing the Company with two weeks prior written notice. If this
Agreement is terminated by the Employee pursuant to this Section 7(e), then the
Employee shall be entitled to receive the Employee’s accrued Base Compensation
and benefits through the effective date of such termination and the Employee
shall have no further entitlement to Base Compensation, bonus, or benefits from
the Company following the effective date of such termination.

(f)          Severance Payment.  The period of time during which the Company
continues to pay (or would continue to pay, but for any breach by the Employee
of this Agreement) the Employee following the termination or expiration of this
Agreement pursuant to Sections 7(c) or 7(d) shall be referred to as the “Severance
Period”, and the amounts due thereunder shall be referred to as the “Severance
Payment.”  The Severance Payment shall be
payable in accordance with the normal payroll practices of the Company and
shall be subject to withholding for applicable taxes and other amounts.  In lieu of cash, at the option of the
Company, the Severance Payment may be payable through the issuance of Common
Stock on the effective date of such termination or expiration, based upon the
closing price of the Common Stock on such date.

8.    
Miscellaneous.

(a)          Survival.  The provisions of Sections 5, 6, 7, and 8
shall survive the termination of this Agreement.

 8
 

 

 

(b)         Entire Agreement.  This Agreement sets forth the entire
understanding of the parties and, except as specifically set forth herein,
merges and supersedes any prior or contemporaneous agreements between the
parties pertaining to the subject matter hereof.

(c)          Modification.  This Agreement may not be modified or
terminated orally, and no modification, termination or attempted waiver of any
of the provisions hereof shall be binding unless in writing and signed by the
party against whom the same is sought to be enforced.

(d)         Waiver.  Failure of a party to enforce one or more of
the provisions of this Agreement or to require at any time performance of any
of the obligations hereof shall not be construed to be a waiver of such
provisions by such party nor to in any way affect the validity of this
Agreement or such party’s right thereafter to enforce any provision of this
Agreement, nor to preclude such party from taking any other action at any time
which it would legally be entitled to take.

(e)          Successors and Assigns.  Neither party shall have the right to assign
this Agreement, or any rights or obligations hereunder, without the consent of
the other party; pro­vided, however, that upon the
sale of all or substantially all of the assets, business and good­will of the
Company to another company, or upon the merger or consolidation of the Company
with an­other company, this Agreement shall inure to the benefit of, and be
binding upon, both Employee and the company purchasing such assets, business
and goodwill, or surviving such merger or con­soli­da­tion, as the case may be,
in the same manner and to the same extent as though such other com­pany were
the Company;  and provided,
further, that the Company shall have the right to assign this
Agreement to any affiliate or subsidiary of the Company.  Subject to the fore­going, this Agree­ment
shall inure to the benefit of, and be binding upon, the parties hereto and
their legal representatives, heirs, successors and assigns.

(f)          Communications.  All notices, requests, demands and other
communications under this Agreement shall be in writing and shall be deemed to
have been given at the time per­sonally delivered or when mailed in any United
States post office enclosed in a registered or cer­ti­fied postage prepaid
envelope and addressed to the addresses set forth below, or to such other ad­dress
as any party may specify by notice to the other party; provided,
however, that any notice of change of address shall be effective
only upon receipt.

 

	
  If to the Company:

  Langer, Inc

  450 Commack Road

  Deer Park, New York 11729

  Facsimile: (631) 667-1203

  Attention: Chief Executive Officer

  	
   

  	
  With a copy to:

  Kane Kessler, P.C.

  1350 Avenue of the Americas

  New York, New York 10019 

  Facsimile: (212) 245-3009

  Attention: Robert L. Lawrence, Esq.

  

 

 9
 

 

 

	
  If to the Employee, to: 

  	
   

  	
  With a copy to: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
  Facsimile:

  
	
   

  	
   

  	
  Attention:

  

 

(g)         Severability.  If any provision of this Agreement is held to
be invalid or unenforceable by a court of competent jurisdiction, such
invalidity or unenforceability shall not affect the validity and enforceability
of the other provisions of this Agreement and the provisions held to be invalid
or unenforceable shall be enforced as nearly as possible according to its
original terms and intent to eliminate such invalidity or unenforceability.

(h)         Jurisdiction; Venue.  This Agreement shall be subject to the
exclusive jurisdiction of the courts of New York County, New York.  Any breach of any provision 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 the parties irrevocably and expressly agree to submit to the exclusive
jurisdiction of the courts of New York County, New York for the purpose of
resolving any disputes among them relating to this Agreement or the
transactions contemplated by this Agreement and waive any objections on the
grounds of forum non conveniens or otherwise.  The parties hereto agree to service of
process by certified or registered United States mail, postage prepaid,
addressed to the party in question.

(i)           Governing Law;
Indemnification.  This
Agreement is made and executed and shall be governed by the laws of the State
of New York, without regard to the conflicts of law principles thereof.  Notwithstanding the foregoing, the Employee
shall have the right to any indemnification to the extent provided for such
Employee in the Company’s certificate of incorporation, bylaws, and the
provisions of Delaware law.

(j)           Counterparts.  This Agreement may be executed in any number
of counterparts, but all counterparts will together constitute but one
agreement.

(k)          Code Section 409A.  The parties to this Agreement intend that the
Agreement be exempt from (or, if not so exempt, comply with) Section 409A of
the U.S. Internal Revenue Code (the “Code”), where applicable, and this
Agreement shall be interpreted in a manner consistent with that
intention.  To the extent required by Section 409A of the Code, no payment
or other distribution required to be made to the Employee hereunder (including
any payment of cash, any transfer of property and any provision of taxable
benefits) as a result of the Employee’s termination of employment with the
Company shall be made earlier than the date that is six (6) months and one day
following the date on which the Employee separates from service with the
Company and its affiliates (within the meaning of Section 409A of the Code).

This
Agreement is for the sole and exclusive benefit of the parties hereto and shall
not be deemed for the benefit of any other person or entity.

[Signature
Page Follows:]

In
Witness Whereof, each of the parties hereto has duly executed
this Employment Agreement as of the date set forth above.

 

	
  Langer, Inc. 

  	
   

  	
  Employee 

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  W. Gray Hudkins,
  President and Chief Executive Officer:

  	
   

  	
  Sara Cormack

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 10

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