Document:

Exhibit
10.39

 

LANGER PARTNERS, LLC

Two Soundview
Drive

Greenwich, CT  06830

 

October 31, 2001

 

 

 

Oracle Management, Inc.

200 Greenwich Ave.

3rd Floor

Greenwich, CT  06830

 

Re:                               Langer, Inc.

 

Dear Sirs:

 

                The following will confirm our agreement regarding securities
of Langer, Inc.

 

The undersigned,
Langer Partners, LLC (“Langer Partners”), a holder of common stock, par value
$.02 per share (“Common Stock”) of Langer, Inc. (the “Company”), understands
that Oracle Management, Inc., and/or certain of its affiliates, including
Oracle Partners, L.P., Oracle Institutional Partners, L.P., SAM Oracle Fund,
Inc., and Oracle Offshore, Ltd. (collectively, “Oracle”), propose to purchase
from the Company 4% convertible subordinated notes, due 2006 (the “Notes”).

 

                In order to induce Oracle to proceed with the
purchase of the Notes, Langer Partners agrees that Langer Partners will not,
without the prior written consent of Oracle, directly or indirectly, make any
offer, sale, assignment, transfer, contract to sell, grant of an option to
purchase or sell or other disposition of or enter into any transaction designed
to result in the disposition by Langer Partners of any Common Stock (a
“Transfer”); provided, however, that the foregoing restriction
shall terminate immediately upon the Transfer by Oracle of one-third or more of
the aggregate amount of Notes, or shares of Common Stock received upon
conversion of such Notes, to any person or entity other than a person or entity
which controls, is controlled by, or is under common control with Oracle; and provided,
further, that if less than one-third of such interest is transferred by
Oracle, then Langer Partners shall be permitted to transfer a pro-rata
percentage of its holdings of Common Stock.

 

Notwithstanding anything
else contained herein, Langer Partners shall be permitted to Transfer, without
the prior written consent of Oracle, shares of Common Stock to any charity,
trust or foundation, or to family members or trusts for the benefit of family
members of Warren B. Kanders; provided, that any such transferee shall be
subject to the terms of this Agreement.

 

                Langer Partners agrees that, subject to the terms
hereof, so long as Oracle owns any Notes, or shares of Common Stock received
upon conversion of the Notes, should Oracle desire to designate its
representative (the “Oracle Nominee”) for election to the board of directors of
the

 

 

Company, Langer Partners
will vote all shares of Common Stock beneficially owned or held of record by
Langer Partners at any regular or special meeting of the stockholders of the
Company called for the purpose electing the Oracle Nominee to the Company’s
board of directors, or in any written consent executed in lieu of such a
meeting.  Langer Partners agrees to vote
for so many Oracle Nominees to the Company’s board of directors as is equal on
a percentage basis to the aggregate percentage ownership of Oracle in the
Company on a fully diluted basis; provided, however, that the
Oracle Nominees shall be Larry N. Feinberg or such other persons that are
mutually acceptable on a reasonable basis to Oracle and Langer Partners.

 

                All notices and other communications hereunder shall
be provided to the addresses set forth above.

 

                This letter agreement shall be governed by and
enforced in accordance with the laws of the State of New York, without regard
to the conflicts of laws provisions thereof. 
The parties hereto irrevocably submit to the exclusive jurisdiction of
the federal and state courts located in the County of New York, State of New
York for the prosecution of any actions or proceedings arising in connection
with this letter agreement.

 

This letter agreement
constitutes the entire agreement between the parties with regard to the subject
matter hereof and supercedes all prior or contemporaneous proposals,
understandings, and agreements, oral or written, between the parties relating
to the subject matter hereof.  This
Agreement may not be amended without the written consent of each of the parties
hereto.

 

This letter agreement may be executed in one or more counterparts, each
of which shall be deemed an original but all of which together shall constitute
one and the same agreement.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

2

 

                If the foregoing accurately sets forth our agreement
with respect to the foregoing, please so indicate by executing and returning to
the undersigned a copy of this letter agreement.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  LANGER PARTNERS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Warren B. Kanders

  
	
   

  	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  
	
   

  	
   

  
	
  ORACLE MANAGEMENT,
  INC.,

  	
   

  
	
    on behalf of its self and its affiliates

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
								

 

3Exhibit
10.40

 

Langer,
Inc.

Stock Option Agreement

Kanders & Company, Inc., Optionee

 

 

Stock Option Agreement (the “Agreement”) made as of November 12, 2004, by and
between Langer, Inc., a Delaware corporation, having its principal office at
450 Commack Road, Deer Park, New York 11729 (the “Company”), and Kanders &
Company, Inc., a Delaware corporation having offices at One Landmark Square,
Stamford, Connecticut 06901 (the “Optionee”).

 

                Whereas,
the principal stockholder of the Optionee has agreed to become a director and
Chairman of the Board of the Company, and the Company has agreed on the terms
and conditions set forth below, to grant the option hereinafter set forth to
induce such principal stockholder to accept such positions;

 

                Now,
Therefore, the parties agree as follows:

 

1.             Option
Grant.  Subject to the provisions hereinafter set
forth, the Company hereby grants to the Optionee, as of the date hereof (the
“Grant Date”), the right, privilege and option (the “Option”) to purchase all
or any part of an aggregate of Two Hundred Forty Thousand (240,000) shares (the
“Shares”) of common stock of the Company, par value $0.02 per share (the
“Common Stock”), such number being subject to adjustment as provided herein.

 

2.             Exercise
Price.  Subject to adjustment as provided in Section
7, the purchase price per Share of Common Stock as to which this Option is
exercised (the “Exercise Price”) shall be Seven and 50/100 dollars ($7.50).

 

3.             Exercise
of Option.  The term of the Option shall be for a period
of ten (10) years from the Grant Date and shall expire without further action
being taken at 5:00 p.m., New York time, on November 12, 2014, subject to
earlier termination as provided in Section 5 hereof (the “Expiration
Date”).  The Option may be exercised at
any time, or from time to time, prior to the Expiration Date as to any part or
all of the Shares covered by the Option, pursuant to the vesting schedule
contained in Section 4.1 hereof; provided, however, that the
Option may not be exercised as to less than one hundred (100) shares, unless it
is exercised as to all Shares as to which this Option is then exercisable.

 

4.             Vesting
Schedule.

 

4.1           The
Shares into which this Option is exercisable shall vest in accordance with the
following schedule:

 

On November 12, 2005:       80,000
shares;

On November 12, 2006:       80,000
shares;

On November 12, 2007:       80,000
shares.

 

 

 

4.2           (a)           Notwithstanding
the foregoing or any contrary or inconsistent provision of this Agreement, the
Option shall vest in full and become immediately exercisable, not later than
immediately prior to the effective date of any Change-of-Control Event (as
hereinafter defined).  The Company
hereby undertakes to give the Optionee notice of any Change of Control Event
within five (5) days thereof.

 

(b)           For
purposes of this Agreement, “Change-of-Control Event” means the occurrence of
any one or more of the following events: 
(i) there shall have been a change in a majority of the Board of
Directors of the Company within twelve (12) month period, unless the appointment
of a director or the nomination for election by the Company’s stockholders of
each new director was approved by the vote of a majority of the directors then
still in office who were in office at the beginning of such twelve (12) month
period, or (ii) the Company shall have been sold by either (A) a sale of all or
substantially all its assets, or (B) a merger or consolidation, other than any
merger or consolidation pursuant to which the Company acquires another entity,
or (C) a tender offer, whether solicited or unsolicited.

 

4.3           Notwithstanding
the vesting schedule set forth in Section 4.1 hereof, such vesting schedule may
be accelerated by the Board of Directors or the Compensation Committee of the
Board of Directors (the “Committee”) in their sole decision.

 

5.             Termination.

 

5.1           Termination
for Any Reason Except Death, Disability or Cause.  If the consulting agreement dated on or about the date hereof
between the Optionee and the Company (the “Consulting Agreement” is terminated
for any reason (including if the Optionee voluntarily terminates such
agreement) other than for cause, or if the principal stockholder of the
Optionee ceases to serve as a director of the Company for any reason other than
such principal stockholder’s death, disability or removal for cause, then this
Option, to the extent (and only to the extent) that it is vested in accordance
with the schedule set forth in Section 4.1 hereof on the effective date of any
such termination (the “Termination Date”), may be exercised by Optionee no later
than three (3) months after the Termination Date, or such longer time period
not exceeding five (5) years as may be determined by the Committee, but in any
event no later than the Expiration Date.

 

5.2           Termination
Because of Death or Disability.  If
the principal stockholder of the Optionee ceases to serve as a director of the
Company and Chairman of the Board of Directors on account of death or permanent
disability, then this Option, to the extent that it is vested in accordance
with the schedule set forth in Section 4.1 hereof on the Termination Date, may
be exercised by Optionee no later than twelve (12) months after the Termination
Date (or such longer time period not exceeding five (5) years as may be
determined by the Committee), but in any event no later than the Expiration
Date.

 

5.3           Termination
for Cause.  If the Consulting
Agreement is terminated for cause (as such term is used in the Consulting
Agreement), or if the principal stockholder of the Optionee is removed as a
director of the Company for cause, the Optionee shall not be entitled to
exercise any Option with respect to any Shares whatsoever, after such
termination of service.  In 

 

 

2

 

 

making any determination with respect to termination of the Consulting
Agreement for cause, or removal of the principal stockholder of the Optionee
from the Board of Directors for cause, the Board of Directors shall give the
Optionee or principal stockholder of the Optionee, as applicable, an
opportunity to present to the Committee evidence on its/his behalf.  For the purpose of this paragraph,
termination of service shall be deemed to occur on the date when the Company
dispatches notice or advice to the Optionee that the Optionee’s service is
terminated, or that the principal stockholder of the Optionee of the Board of
Directors has been removed for cause, as applicable.

 

5.4           No
Obligation to Employ.  Nothing in
this Agreement shall confer on Optionee any right to continue as a consultant
to the Company or any subsidiary of the Company, nor confer on the principal
stockholder of the Optionee any right to serve on the Board of Directors of the
Company or any subsidiary of the Company, or limit in any way the right of the
Company or any affiliate or subsidiary of the Company to terminate the
Consulting Agreement or remove the principal stockholder from the Board of
Directors, with or without cause.  This
Agreement does not constitute a retainer of the Optionee or its principal
stockholder or any other affiliate of the Optionee.  This Agreement does not guarantee engagement of the Consultant
for the length of time of the vesting schedule set forth in Article 4 hereof or
for any portion thereof.

 

6.             Manner
of Exercise.

 

6.1           Stock
Option Exercise Agreement.  To exercise
this Option, the Optionee must deliver to the Company an executed stock option
exercise agreement in the form attached hereto as Exhibit A, or, at the
Committee’s sole discretion, in such other form as may be approved by the
Company from time to time (the “Exercise Agreement”), which shall set forth, inter
alia,
Optionee’s election to exercise this Option, the number of shares being
purchased, any restrictions imposed on the Shares and any representations,
warranties and agreements regarding Optionee’s investment intent and access to
information as may be required by the Company to comply with applicable
securities laws.  If someone other than
Optionee exercises this Option, then such person must submit documentation
reasonably acceptable to the Company that such person has the right to exercise
this Option.

 

6.2           Limitations
on Exercise.  This Option may not be
exercised unless such exercise is in compliance with all applicable federal and
state securities laws, as they are in effect on the date of exercise.

 

6.3           Payment.  The Exercise Agreement shall be accompanied
by full payment of the aggregate Exercise Price for the Shares being purchased
(a) in cash (by check), or (b) provided that a public market for the
Company’s stock exists:  (1) through a
“same day sale” commitment from Optionee and a broker-dealer that is a member
of the National Association of Securities Dealers (an “NASD Dealer”) whereby
Optionee irrevocably elects to exercise this Option and to sell a portion of
the Shares so purchased to pay for the aggregate Exercise Price and whereby the
NASD Dealer irrevocably commits upon receipt of such Shares to forward the
aggregate Exercise Price directly to the Company; or (2) through a “margin”
commitment from Optionee and an NASD Dealer whereby Optionee irrevocably elects
to exercise this Option and 

 

 

 

3

 

to pledge the Shares so purchased to the NASD Dealer in a margin
account as security for a loan from the NASD Dealer in the amount of the
aggregate Exercise Price, and whereby the NASD Dealer irrevocably commits upon
receipt of such Shares to forward the aggregate Exercise Price directly to the
Company.  Notwithstanding the foregoing,
the Board of Directors or the Committee, in their absolute discretion, may
allow for the full payment of the aggregate Exercise Price for the Shares being
purchased to be made by any other method.

 

6.4           Tax
Withholding.  Prior to the issuance
of the Shares upon exercise of this Option, Optionee must pay or provide for any
applicable federal or state withholding obligations of the Company.  If the Committee elects, Optionee may
provide for payment of withholding taxes upon exercise of this Option by
requesting that the Company retain Shares with a fair market value equal to the
minimum amount of taxes required to be withheld.  In such case, the Company shall issue the net number of Shares to
the Optionee by deducting the Shares retained from the Shares issuable upon
exercise.

 

6.5           Issuance
of Shares.  Provided that the Exercise
Agreement and payment are in form and substance satisfactory to the Company and
counsel for the Company, the Company shall issue the Shares registered in the
name of Optionee, Optionee’s authorized assignee, or Optionee’s legal
representative, and shall deliver certificates representing the Shares with the
appropriate legends affixed thereto.

 

7.             Certain
Adjustments.

 

7.1           Assumption
or Replacement of Options by Successor. 
Subject to the provisions of Section 4.2 above, if a Change-of-Control
Event occurs, the successor company in any Change-of-Control Event (or the
Company, if there is no successor company) may, if approved in writing by the
Committee or Board of Directors prior to any Change-of-Control Event,
(i) substitute equivalent options or provide substantially similar
consideration to the Optionee as was provided to stockholders in such
Change-of-Control Event (after taking into account the existing provisions
hereof), or (ii) issue, in place of this Option a substantially similar
option or substantially similar other securities or substantially similar other
property.

 

7.2           Other
Treatment.  Subject to the rights
set forth in Section 4.2 (including without limitation the provisions for
acceleration of vesting and notice of a Change-of-Control Event) and the rights
and limitations set forth in this Section 7, if a Change-of-Control Event
occurs or has occurred, any outstanding unexercised Options, will be treated as
provided in the applicable agreement or plan of merger, consolidation,
dissolution, liquidation, or sale of assets constituting the Change-of-Control
Event.

 

7.3           Adjustment
of Shares.  In the event that the
number of outstanding shares is changed by a stock dividend, recapitalization,
stock split, reverse stock split, subdivision, combination, reclassification or
similar change in the capital structure of the Company without consideration,
then the Exercise Price of and number of Shares acquirable upon exercise of
this Option will be proportionately adjusted, subject to any required action by
the Board or the stockholders of the Company and compliance with applicable
securities laws; provided, however, that fractions of a Share will not be
issued will be rounded to the nearest whole Share.

 

 

4

 

 

8.             Compliance
With Laws and Regulations.  The exercise
of this Option and the issuance and transfer of Shares to the Optionee shall be
subject to compliance by the Company and Optionee with (i) all applicable
requirements of federal and state securities laws, (ii) all applicable
requirements of any stock exchange or quotation system on which the Company’s
Common Stock may be listed or traded, and (iii) any applicable policy of
the Company regarding the trading of securities of the Company, each at the
time of such issuance and transfer. 
Optionee understands that the Company is under no obligation to register
or qualify the Shares with the Securities and Exchange Commission, any state
securities commission or any stock exchange to effect such compliance.

 

9.             Nontransferability
of Option.  This Option may not be transferred in any
manner other than by will or by the laws of descent and distribution.  During the lifetime of Optionee, the Option
shall be exercisable only by Optionee personally or by the Optionee’s legal
representative.  The terms of this
Option shall be binding upon the successors and assigns of Optionee.

 

10.          Privileges
of Stock Ownership.  Optionee shall not have any of
the rights of a stockholder with respect to any Shares until the Shares are
issued to Optionee.

 

11.          Interpretation. 
Any dispute regarding the interpretation of this Agreement shall be
submitted by Optionee or the Company to the Committee for review.  The resolution of such a dispute by the
Committee shall be final and binding on the Company and Optionee.

 

12.          Entire
Agreement.  This Agreement and the Exercise Agreement
constitute the entire agreement and understanding of the parties hereto with
respect to the subject matter hereof and supersede all prior understandings and
agreements with respect to such subject matter.

 

13.          Notices. 
Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the Corporate
Secretary of the Company at its principal corporate offices.  Any notice required to be given or delivered
to Optionee shall be in writing and addressed to Optionee at the address
indicated above or to such other address as such party may designate in writing
from time to time to the Company.  All
notices shall be deemed to have been given or delivered upon: personal
delivery; three (3) days after deposit in the United States mail by certified
or registered mail (return receipt requested); one (1) business day after
deposit with any return receipt express courier (prepaid); or one (1) business
day after transmission by facsimile.

 

14.          Successors
and Assigns.  The Company may assign any of its rights
under this Agreement.  This Agreement
shall be binding upon and inure to the benefit of the successors and assigns of
the Company.  Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding upon
Optionee and its legal representatives, successors and assigns.

 

15.          Governing
Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, applicable to
agreements made and to be 

 

 

5

 

performed entirely within such state, other than conflict of laws
principles thereof directing the application of any law other than that of New
York.

 

16.          Tax
Consequences.  Optionee acknowledges
that there may be adverse tax consequences upon exercise of this Option or
disposition of the Shares and that the Company has advised Optionee to consult
a tax advisor prior to such exercise or disposition.

 

17.          Covenants
of the Optionee.  The Optionee agrees (and for any legal
representative, successor, or assignee of Optionee hereby agrees), as a
condition upon exercise of the Option granted hereunder:

 

(a)           Upon
the request of the Company, to execute and deliver a certificate, in form
satisfactory to the Company, certifying that the Shares being acquired upon
exercise of the Option are for such person’s own account for investment only
and not with any view to or present intention to resell or distribute the
same.  The Optionee hereby agrees that
the Company shall have no obligation to deliver the Shares issuable upon
exercise of the Option unless and until such certificate shall be executed and
delivered to the Company by the Optionee or any successor.

 

(b)           Upon
the request of the Company, to execute and deliver a certificate, in form
satisfactory to the Company, certifying that any subsequent resale or
distribution of the Shares by the Optionee shall be made only pursuant to
either (i) a Registration Statement on an appropriate form under the
Securities Act of 1933, as amended (the “Securities Act”), which Registration
Statement has become effective and is current with regard to the Shares being
sold, or (ii) a specific exemption from the registration requirements of
the Securities Act, but in claiming such exemption the Optionee shall, prior to
any offer of sale or sale of such Shares, obtain a prior favorable written
opinion of counsel, in form and substance satisfactory to counsel for the
Company, as to the application of such exemption thereto.  The foregoing restriction contained in this
subparagraph (b) shall not apply to (x) issuances by the Company so long as the
Shares being issued are registered under the Securities Act and a prospectus in
respect thereof is current, or (y) re-offerings of Shares by Affiliates of
the Company (as defined in Rule 405 or any successor rule or regulation
promulgated under the Securities Act) if the Shares being re-offered are registered
under the Securities Act and a prospectus in respect thereof is current.

 

(c)           That
certificates evidencing Shares purchased upon exercise of the Option shall bear
a legend, in form satisfactory to counsel for the Company, manifesting the
investment intent and resale restrictions of the Optionee described in this
Section.

 

(d)           That
upon exercise of the Option granted hereby, or upon sale of the Shares
purchased upon exercise of the Option, as the case may be, the Company shall
have the right to require the Optionee to remit to the Company, or in lieu
thereof, the Company may deduct, an amount of shares or cash sufficient to
satisfy federal, state or local withholding tax requirements, if any, prior to
the delivery of any certificate for such Shares or thereafter, as appropriate.

 

6

 

 

18.          Obligations
of the Company

 

18.1         Upon
the exercise of this Option in whole or in part, the Company shall cause the
purchased Shares to be issued only when it shall have received the payment of
the aggregate Exercise Price in accordance with the terms of this Agreement.

 

18.2         The
Company shall cause certificates for the Shares as to which the Option shall
have been exercised to be registered in the name of the person or persons
exercising the Option, which certificates shall be delivered by the Company to
the Optionee only against payment of the aggregate Exercise Price in accordance
with the terms of this Agreement for the portion of the Option exercised.

 

18.3         In the event that the Optionee shall
exercise this Option with respect to less than all of the Shares of Common
Stock that may be purchased under the terms hereof, the Company shall issue to
the Optionee a new Option, duly executed by the Company and the Optionee, in form
and substance identical to this Option, for the balance of Shares of Common
Stock then issuable pursuant to the terms of this Option.

 

18.4         Notwithstanding
anything to the contrary contained herein, neither the Company nor its transfer
agent shall be required to issue any fraction of a Share of Common Stock in
connection with the exercise of this Option, and the Company shall, upon
exercise of this Option in whole or in part, issue the largest number of whole
Shares of Common Stock to which this Option is entitled upon such full or
partial exercise and shall return to the Optionee the amount of the aggregate
Exercise Price paid by the Optionee in respect of any fractional Share.

 

18.5         The
Company may endorse such legend or legends upon the certificates for Shares
issued to the Optionee pursuant hereto and may issue such “stop transfer”
instructions to its transfer agent in respect of such Shares as, in its
discretion, it determines to be necessary or appropriate to: (i) prevent a
violation of, or to perfect an exemption from, the registration requirements of
the Securities Act; (ii) implement the provisions hereof and any agreement
between the Company and the Optionee with respect to such Shares.

 

18.6         The
Company shall pay all issue or transfer taxes with respect to the issuance or
transfer of Shares to the Optionee, as well as all fees and expenses
necessarily incurred by the Company in connection with such issuance or
transfer, except fees and expenses which may be necessitated by the filing or
amending of a Registration Statement under the Securities Act, which fees and
expenses shall be borne by the Optionee, unless such Registration Statement
under the Securities Act has been filed by the Company for its own corporate
purposes (and the Company so states) in which event the Optionee shall bear
only such fees and expenses as are attributable solely to the inclusion of the
Shares he or she receives in the Registration Statement.

 

18.7         All
Shares issued following exercise of the Option and the payment of the aggregate
Exercise Price in accordance with the terms of this Agreement therefor shall be
fully paid and non-assessable to the extent permitted by law.

 

 

7

 

 

19.          Miscellaneous

 

19.1         If
the Optionee loses this Agreement representing the Option granted hereunder, or
if this Agreement is stolen or destroyed, the Company shall, subject to such
reasonable terms as to indemnity as the Committee in its sole discretion shall
require, enter into a new option agreement pursuant to which the Company shall
issue a new Option, in form and substance identical to this Option, and in
substitution for, the Option so lost, stolen or destroyed, and in the event
this Agreement representing the Option shall be mutilated, the Company shall,
upon the surrender hereof, enter into a new option agreement pursuant to which
the Company shall issue a new Option, in form and substance identical to this
Option, and in substitution for, the Option so mutilated.

 

19.2         This
Agreement cannot be amended, supplemented or changed, and no provision hereof
can be waived, except by a written instrument making specific reference to this
Agreement and signed by the party against whom enforcement of any such
amendment, supplement, modification or waiver is sought. A waiver of any right
derived hereunder by the Optionee shall not be deemed a waiver of any other
right derived hereunder.

 

19.3         This
Agreement may be executed in any number of counterparts, but all counterparts
will together constitute but one agreement.

 

19.4         Any
dispute regarding the interpretation of this Agreement shall be submitted by
Optionee or the Company to the Committee for review.  The resolution of such a dispute by the Committee shall be final
and binding on the Company and Optionee.

 

19.5         The
Option granted herein is subject to the approval of the stockholders of the
Company if the Board of Directors of the Company determines that such approval
is required. If any such approval is not obtained prior to June 30, 2005
or the Board of Directors determines not to seek such stockholder approval, the
Company shall provide alternative compensation to the optionee having a fair
market value equal to the value of this Option.

 

[Signature Page Follows:]

 

 

8

 

In Witness Whereof, the Company has caused this Agreement to be executed
in duplicate by its duly authorized representative, and Optionee has executed
this Agreement in duplicate as of the Date of Grant.

 

	
   

  	
  Langer, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Kanders
  & Company, Inc., a Delaware 

  
	
   

  	
  corporation, the Optionee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Warren B. Kanders,
  President

  

 

 

 

 

9

 

EXHIBIT A

 

LANGER,
INC.

STOCK OPTION EXERCISE
AGREEMENT

 

 

                I hereby elect to
purchase the number of shares of Common Stock of Langer, Inc. (the “Company”)
as set forth below:

 

	
  Optionee

  	
   

  	
   

  
	
  Social Security Number:

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of Shares Purchased:

  	
   

  	
   

  
	
  Exercise Price per Share:

  	
   

  	
   

  
	
  Aggregate Exercise Price:

  	
   

  	
   

  
	
  Date of Option:

  	
   

  	
   

  
	
  Exact Name of Title to Shares:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

1.             DELIVERY OF
EXERCISE PRICE. Optionee hereby delivers to the Company the Aggregate Exercise
Price, to the extent permitted in the Option Agreement (the “Option
Agreement”), as follows (check as applicable and complete):

 

o            in
cash (by check) in the amount of $_____________________;

 

o            by
cancellation of indebtedness of the Company to Optionee in the amount of
$___________________________________;

 

o            by
delivery of ______________________________ fully-paid, nonassessable and vested
shares of the Common Stock of the Company owned by Optionee for at least six
(6) months prior to the date hereof (and which have been paid for within the
meaning of SEC Rule 144), or obtained by Optionee in the open public market,
and owned free and clear of all liens, claims, encumbrances or security
interests, valued at the current Fair Market Value of $____________________ per
share;

 

o            by
tender of a promissory note in the principal amount of $________________________,
secured by a Pledge Agreement of even date herewith (the par value of the
Shares is tendered in cash (or by check));

 

o            by
the waiver hereby of compensation due or accrued to Optionee for services
rendered in the amount of $____________________________________ ;

 

o            through
a “same-day-sale” commitment, delivered herewith, from Optionee and the NASD
Dealer named therein, in the amount of $_______________________________; or

 

 

10

 

 

o            through
a “margin” commitment, delivered herewith from Optionee and the NASD Dealer
named therein, in the amount of $_________________________________________.

 

2.             MARKET STANDOFF
AGREEMENT.  Optionee, if requested by
the Company and an underwriter of Common Stock (or other securities) of the
Company, agrees not to sell or otherwise transfer or dispose of any Common
Stock (or other securities) of the Company held by Optionee during the period
requested by the managing underwriter following the effective date of a
registration statement of the Company filed under the Securities Act, provided
that all officers and directors of the Company are also requested to enter into
similar agreements.  Such agreement
shall be in writing in a form satisfactory to the Company and such underwriter.
The Company is hereby entitled to impose stop-transfer instructions with
respect to the shares (or other securities) subject to the foregoing
restriction until the end of such period.

 

3.             TAX
CONSEQUENCES.  OPTIONEE UNDERSTANDS THAT
OPTIONEE MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF OPTIONEE’S PURCHASE
OR DISPOSITION OF THE SHARES. OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED
WITH ANY TAX CONSULTANT(S) OPTIONEE DEEMS ADVISABLE IN CONNECTION WITH THE
PURCHASE OR DISPOSITION OF THE SHARES AND THAT OPTIONEE IS NOT RELYING ON THE
COMPANY FOR ANY TAX ADVICE.

 

4.             ENTIRE
AGREEMENT.  The Option Agreement is
incorporated herein by reference. This Exercise Agreement and the Option
Agreement constitute the entire agreement and understanding of the parties and
supersede in their entirety all prior understandings and agreements of the
Company and Optionee with respect to the subject matter hereof, and are
governed by New York law applicable to contracts executed and to be fully
performed therein, other than conflict of laws principles thereof directing the
application of any law other than that of New York.

 

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  SIGNATURE
  OF OPTIONEE

  

 

 

 

11

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