Document:

Langer,
      Inc., a Delaware corporation

    

    with
      the
      Purchasers Listed on

    

    Exhibit
      A
      Hereto

    

    

    

    

    

    Convertible
      Subordinated Note Purchase Agreement

    

    

    

    

    

    

    Dated
      as of
      December 7, 2006

     

     

    
      
        
        

      

      
        
        

        
        

        
          

          

        

      

      
        
        

      

    

     

    TABLE
      OF
      CONTENTS

    

    

    Page

    

    
      	
              I.

            	
              AUTHORIZATION
                OF NOTES

            	
              1

            
	 	 	 
	
              II.

            	
              SALE
                AND
                PURCHASE OF NOTES

            	
              1

            
	 	 	 
	
              III.

            	
              CLOSING

            	
              1

            
	
              3.1

            	
              Closing

            	
              1

            
	
              3.2

            	
              Deliveries

            	
              1

            
	 	 	 
	
              IV.

            	
              REPRESENTATIONS
                AND WARRANTIES BY THE COMPANY

            	
              2

            
	
              4.1

            	
              Organization
                and Existence, Authority, etc

            	
              2

            
	
              4.2

            	
              Litigation

            	
              2

            
	
              4.3

            	
              Charter
                Documents

            	
              2

            
	
              4.4

            	
              Authorized
                and Outstanding Capital Stock

            	
              2

            
	
              4.5

            	
              Broker's
                and
                Finder's Fees

            	
              2

            
	
              4.6

            	
              Commission
                Filings and Financial Statements

            	
              2

            
	
              4.7

            	
              Tax
                Returns
                and Payments

            	
              3

            
	
              4.8

            	
              Indebtedness

            	
              3

            
	
              4.9

            	
              Title
                to
                Properties

            	
              3

            
	
              4.10

            	
              Compliance
                with Other Instruments, Etc

            	
              4

            
	
              4.11

            	
              Governmental
                Consent

            	
              4

            
	
              4.12

            	
              Use
                of
                Proceeds

            	
              4

            
	
              4.13

            	
              Solvency

            	
              4

            
	
              4.14

            	
              Disclosure

            	
              4

            
	 	 	 
	
              V.

            	
              SUBORDINATION

            	
              4

            
	
              5.1

            	
              Agreement
                to
                Be Bound

            	
              4

            
	
              5.2

            	
              Priority
                of
                Senior Indebtedness

            	
              5

            
	
              5.3

            	
              Acceleration
                of Notes; Insolvency

            	
              5

            
	
              5.4

            	
              Subrogation,
                Etc

            	
              6

            
	
              5.5

            	
              Enforcement

            	
              6

            
	
              5.6

            	
              Obligations
                Unimpaired

            	
              7

            
	
              5.7

            	
              Definition
                of
                Senior Indebtedness

            	
              7

            
	
              5.8

            	
              Amendment

            	
              7

            
	 	 	 
	
              VI.

            	
              REPRESENTATIONS
                OF THE PURCHASERS

            	
              7

            
	
              6.1

            	
              Resale
                Restrictions.

            	
              7

            
	
              6.2

            	
              Accreditor
                Investor

            	
              8

            
	
              6.3

            	
              Review
                of
                Information.

            	
              8

            
	
              6.4

            	
              Due
                Authority

            	
              9

            
	
              VII.

            	
              CERTAIN
                CONSIDERATIONS

            	
              9

            
	
            	 	 
	
              VIII.

            	
              CONDITIONS
                TO
                OBLIGATIONS

            	
              9

            
	
              8.1

            	
              Accuracy
                of
                Representations and Warranties

            	
              9

            
	
              8.2

            	
              Performance;
                No Default

            	
              9

            
	
              8.3

            	
              Officers'
                Certificate

            	
              9

            
	
              8.4

            	
              Proceedings

            	
              9

            
	
              8.5

            	
              Legal
                Investment

            	
              10

            
	
              8.6
                

            	
              No
                Litigation

            	
              10

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    Page

    
      	 	 	 
	
              8.7

            	
              Sales
                to
                Other Purchasers

            	
              10

            
	
              8.8

            	
              Purchase
                Permitted by Applicable Laws

            	
              10

            
	
              8.9

            	
              Compliance
                with Securities Laws

            	
              10

            
	 	 	 
	
              IX.

            	
              AFFIRMATIVE
                COVENANTS.

            	
              10

            
	
              9.1

            	
              Financial
                Information

            	
              10

            
	
              9.2

            	
              Office
                for
                Payment, Exchange and Registration

            	
              11

            
	
              9.3

            	
              Notices

            	
              11

            
	
              9.4

            	
              Corporate
                Existence, Etc

            	
              11

            
	
              9.5

            	
              Payment
                of
                Taxes

            	
              11

            
	
              9.6

            	
              Maintenance
                of Properties; Insurance

            	
              11

            
	
              9.7

            	
              Compliance
                with Laws

            	
              11

            
	 	 	 
	
              X.

            	
              NEGATIVE
                COVENANTS.

            	
              12

            
	
              10.1

            	
              Transactions
                with Affiliates

            	
              12

            
	
              10.2

            	
              Restricted
                Indebtedness

            	
              12

            
	
              10.3

            	
              Guaranties
                by
                Subsidiaries

            	
              12

            
	 	 	 
	
              XI.

            	
              DEFAULTS.

            	
              12

            
	 	 	 
	
              XII.

            	
              CONVERSION.

            	
              14

            
	
              12.1

            	
              Conversion

            	
              14

            
	
              12.2

            	
              Delivery
                of
                Stock Certificates; Time Conversion Effective; No Adjustment for
                Interest
                or Dividends

            	
              14

            
	
              12.3

            	
              Notice
                to
                Holders of Election

            	
              15

            
	
              12.4

            	
              Adjustment
                of
                Conversion Price

            	
              15

            
	
              12.5

            	
              Company's
                Consolidation or Merger

            	
              17

            
	
              12.6

            	
              Reserve
                of
                Sufficient Shares

            	
              18

            
	
              12.7

            	
              Taxes
                on
                Conversion

            	
              18

            
	
              12.8

            	
              Cancellation
                of Converted Notes

            	
              18

            
	
              12.9

            	
              Notice
                to
                Holders of Notes

            	
              18

            
	 	 	 
	
              XIII.

            	
              CALL
                OF NOTES
                BY THE COMPANY

            	
              19

            
	
              13.1

            	
              Optional
                Conversion or Redemption Upon Call by the Company

            	
              19

            
	
              13.2

            	
              Notice
                of
                Call

            	
              20

            
	
              13.3

            	
              Partial
                Call

            	
              20

            
	
              13.4

            	
              Surrender
                of
                Notes Upon Call

            	
              20

            
	 	 	 
	
              XIV.

            	
              REGISTRATION
                RIGHTS; RESTRICTIONS ON TRANSFER

            	
              20

            
	
              14.1

            	
              Notification
                of Proposed Sale

            	
              20

            
	
              14.2

            	
              Obligation
                to
                Register

            	
              22

            
	
              14.3

            	
              "Piggyback"
                and Demand Registration Rights

            	
              22

            
	
              14.4

            	
              Terms
                and
                Conditions of Registration

            	
              23

            
	
              14.5

            	
              Indemnification

            	
              26

            
	
              14.6

            	
              Contribution

            	
              27

            
	
              14.7

            	
              Survival

            	
              28

            
	 	 	 
	
              XV.

            	
              REPLACEMENT
                OF NOTES

            	
              28

            
	 	 	 
	
              XVI.

            	
              AMENDMENT
                AND
                WAIVER

            	
              28

            
	 	 	 
	
              XVII.

            	
              HOME
                OFFICE
                PAYMENT

            	
              28

            
	 	 	 
	
              XVIII.

            	
              NOTICES

            	
              29

            
	 	 	 
	
              XIX.

            	
              ENTIRE
                AGREEMENT

            	
              29

            
	 	 	 
	
              XX.

            	
              SUCCESSORS
                AND ASSIGNS

            	
              29

            

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    Page

    
      	 	 	 
	
              XXI.

            	
              HEADINGS

            	
              29

            
	 	 	 
	
              XXII.

            	
              GOVERNING
                LAW

            	
              29

            
	 	 	 
	
              XXIII.

            	
              COUNTERPARTS

            	
              29

            
	 	 	 
	
              XXIV.

            	
              SEVERABILITY

            	
              29

            
	 	 	 
	
              XXV.

            	
              DEFINITIONS

            	
              30

            

    

    

    Exhibit
      A -
      Purchasers

    Exhibit
      B - Form of
      Note

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    LANGER,
      INC.

    450
      Commack
      Road

    Deer
      Park,
      N.Y. 11729

    

    

    As
      of December 7,
      2006

    

    

    To
      the Purchasers
      set forth

    on
Exhibit
      A
      to this
      Agreement

    

    Dear
      Sirs/Madams:

    

    LANGER,
      INC., a
      Delaware corporation (the "Company"), agrees with each Purchaser as
      follows:

    

    I. AUTHORIZATION
      OF
      NOTES.
      The Company has authorized the issuance and sale of an aggregate of up to
      $28,880,000 principal amount of its 5% Convertible Subordinated Notes due
      December 7, 2011 (the "Notes"). The Notes are convertible into shares of the
      Company's common stock, par value $.02 per share
      (such shares
      to be issued upon conversion of the Notes
      being
      hereinafter referred to herein as the "Shares"), at the Conversion Price defined
      in Article XXV of this Agreement. The Notes are to be sold pursuant to this
      Agreement to the purchasers listed on Exhibit
      A
      to this Agreement
      (the "Purchasers"). Interest on the Notes is payable semi-annually on the last
      day of December and June in each year, commencing on June 30, 2007 (which first
      interest payment shall be for the period from and including the
      Closing Date
      specified in Article III
      through June
      30, 2007), at the interest rate specified in the form of Note attached hereto
      as
      Exhibit "B".

    

    II. SALE
      AND PURCHASE
      OF NOTES.
      Subject to the
      terms and conditions hereof, the Company will sell to each Purchaser, and each
      Purchaser will purchase from the Company, on the Closing Date specified in
      Article III, a Note or Notes in the aggregate principal amount set forth
      opposite such Purchaser's name on Exhibit
      A
      hereto, at a
      purchase price of 100% of such principal amount.

    

    III. CLOSING.

    

    3.1 Closing.
      The closing (the
      "Closing") of the purchase and sale of the Notes will take place at the offices
      of Kane Kessler, P.C., 1350 Avenue of the Americas, New York, New York
      10019,
      at 10:00 a.m., New York City time, on
      or about
      December 7, 2006. Such time and date of the Closing is herein called the
      "Closing Date."

    

    3.2 Deliveries.
      On the Closing
      Date, in the case of Purchasers that are present at the Closing, or within
      one
      (1)
      Business Day after the Closing, in the case of all other Purchasers, the Company
      shall deliver to each Purchaser a Note
      or Notes,
      dated the Closing Date, in the aggregate principal amount set forth opposite
      such Purchaser's name on Exhibit
      A
      hereto, each such
      Note to be registered in the name of the Purchaser or its nominee, against
      delivery by the Purchaser to the Company of a certified or official bank
      check(s) or wire transfer(s) in an aggregate amount equal to the aggregate
      purchase price for such Notes, payable to the order of the Company in
      immediately available funds. 

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    IV. REPRESENTATIONS
      AND
      WARRANTIES BY THE COMPANY.
      The Company
      represents and warrants that:

    

    4.1 Organization
      and
      Existence, Authority, etc.
      The Company is a
      corporation duly organized and validly existing and in good standing under
      the
      laws of the State of Delaware, and has all requisite corporate power and
      authority to carry on its business as now conducted and proposed to be
      conducted; the Company has all requisite
      corporate
      power and authority to enter into this Agreement, to issue the Notes
      as
      contemplated herein and to carry out the provisions and conditions of this
      Agreement and of the Notes, including the issuance of the Shares in accordance
      with the terms of this Agreement and the Notes. Except as set forth on Schedule
      4.1, the Company has no Subsidiaries as of the date hereof. This Agreement
      and
      the Notes have been duly executed and delivered by, and constitute the valid
      and
      binding obligations of, the Company, enforceable in accordance with their
      respective terms, subject to the effect of any applicable bankruptcy,
      moratorium, insolvency, reorganization or other similar law affecting the
      enforceability of creditors' rights generally and to the effect of general
      principles of equity which may limit the availability of remedies
      (whether in a
      proceeding at law or in equity). The Company is duly qualified and is authorized
      to do business and is in good standing as a foreign corporation in each
      jurisdiction in which the conduct of its business or ownership of its properties
      would so require, except where the failure to be so qualified would not have
      a
      material adverse effect on its business and financial condition, taken as a
      whole.

    

    4.2 Litigation.
      Except as
      disclosed in the Company Commission Filings (as hereinafter defined), to the
      knowledge of the Company, there
      is no action,
      suit or proceeding pending, or threatened, against the Company before any court,
      administrative agency or arbitrator which could reasonably be expected to result
      in any material adverse change in the business, properties, or
      condition
      (financial or otherwise) of the Company, taken as a whole, or which challenges
      the validity of any action taken or to be taken pursuant to or in connection
      with this Agreement or the Notes.

    

    4.3 Charter
      Documents.
      Neither the
      execution nor the delivery of this Agreement and the Notes, nor the consummation
      of the transactions contemplated hereby and thereby, nor compliance with the
      terms and provisions hereof and thereof, will conflict with, or result in a
      breach of or creation of a lien under, the terms, conditions
      or provisions
      of, or constitute a default under, the charter or by-laws of the Company, as
      amended, copies of which have been provided to the Purchasers.

    

    4.4 Authorized
      and
      Outstanding Capital Stock.
      The Company has
      authorized 50,000,000 shares of Common Stock, par value $.02 per share (the
      "Common Stock"), of which 10,146,673 shares are issued and outstanding as of
      the
      date of this Agreement. All of such outstanding shares of Common Stock have
      been
      validly issued and are fully paid and non-assessable.
      The
      Company has authorized (i) the issuance and sale to the Purchasers
      of an aggregate
      of up to $35,000,000 principal amount of the Notes, and (ii) the issuance upon
      conversion of the Notes of the Shares into which the Notes are convertible
      in
      accordance with Article XII or XIII, as applicable, of this Agreement. The
      Shares, when issued in accordance with the terms of this Agreement, and the
      Notes will be validly issued, fully paid and non-assessable.

    

    4.5 Broker's
      and
      Finder's Fees.
      The Company will
      pay all broker's and finder's fees incurred by the Company in connection with
      the sale of the Notes.

    

    4.6 Commission
      Filings and Financial Statements.
      The Company has
      heretofore made available to the Purchasers true and complete copies of all
      reports, registration statements,

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    definitive
      proxy
      statements and other documents (in each case together with all amendments and
      supplements
      thereto)
      filed by the Company with the Commission since January
      1, 2006
      (such reports, registration statements, definitive proxy statements and other
      documents, together with any amendments and supplements thereto, are sometimes
      collectively referred to as the "Company Commission Filings").
      The
      Company Commission Filings constitute all of the documents (other than
      preliminary materials) that the Company was required to file with the Commission
      since such date. As of their respective dates, each of the Company Commission
      Filings complied in all material respects with the applicable requirements
      of
      the Securities Act and the Exchange Act, as applicable, and the rules and
      regulations under each such Act, and none of the Company Commission Filings
      contained as of such date any untrue statement of a material fact or omitted
      to
      state a material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading. When filed with the Commission the financial statements
(other
      than those financial statements which were subsequently amended or restated)
      included in the Company Commission Filings complied as to form in all material
      respects with the applicable rules and regulations of the Commission and were
      prepared
      in
      accordance with generally accepted accounting principles (as in effect from
      time
      to time) applied on a consistent basis (except as may be indicated therein
      or in
      the notes or schedules thereto), and such financial statements fairly present
      in
      accordance with generally accepted accounting principles in all material
      respects the financial position of the Company as at the dates thereof and
      the
      results of its operations and its cash flows for the periods then ended,
      subject, in the case of the unaudited interim financial statements, to normal,
      recurring year-end audit adjustments and the absence of footnotes. Since
January
      1, 2006,
      except as disclosed in (i) the Company Commission Filings filed with the
      Commission prior to the date hereof and (ii) the Private Placement
      Memorandum with respect to the Twincraft Acquisition, the Company has not
      incurred any liability or obligation of any kind outside of the ordinary course
      of business, and no other event has occurred which, in any case or in the
      aggregate, would have a material adverse effect on the business, assets, results
      of operations or financial condition of the Company.

    

    4.7 Tax
      Returns and
      Payments.
      The Company has
      filed all tax returns required by law to be filed by it and has paid all
      material
      taxes, assessments
      and other governmental charges levied upon the Company and any of its
      properties, assets, income or franchises which are due and payable, other than
      those presently payable without penalty or interest or those that are being
      contested in good faith by appropriate proceedings promptly instituted and
      diligently conducted and for which adequate reserves have been established
      on
      the books of the Company in accordance with generally accepted accounting
      principles. The charges, accruals and reserves on the books of the Company
      in
      respect of Federal, state and foreign income taxes for all fiscal periods are
      adequate in the opinion of the Company, and the Company has not been notified
      of
      any material unpaid assessment for additional Federal, state or foreign income
      taxes for any period or any basis for any such assessment for which adequate
      provision has not been made in its accounts in accordance with generally
      accepted accounting principles.

    

    4.8 Indebtedness.
      Except for the
      Senior Secured Credit Facility (as defined in Article XXV), the Company
      Commission Filings correctly describe all material secured and unsecured
      Indebtedness of the Company outstanding, or for which the Company has
      commitments, on the date of this Agreement, and identify in all material
      respects the collateral
      securing
      any such secured Indebtedness. The Company is not in material default with
      respect to the payment of any material Indebtedness or with respect to any
      instrument or agreement relating thereto.

    

    4.9 Title
      to
      Properties.
      The Company has
      good and sufficient title to its material properties and assets, including
      the
      properties and assets reflected in the financial statements as of and for the
      quarter ended September 30, 2006 (except properties and assets disposed of
      since

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    such
      date in the
      ordinary course of business and properties and assets held under Capital
      Leases). The Company enjoys peaceful and undisturbed possession under all
      material leases necessary in any material
      respect for the
      operation of its material properties and assets, and all such leases are valid
      and subsisting and are in full force and effect.

    

    4.10 Compliance
      with
      Other Instruments, Etc.
      The Company is not
      in violation of any term of its certificate or articles of incorporation or
      by-laws, and the Company is not in material
      violation of
      any material term of any material agreement or instrument to which it is a
      party
      or by which it is bound or any material term of any applicable law, ordinance,
      rule or regulation of any governmental authority or any material term of any
      applicable order, judgment or decree of any court, arbitrator or governmental
      authority, the consequences of which violation could
      reasonably be
      expected to have a materially adverse effect on the business, condition
      (financial or other), operations, assets
      or properties of
      the Company; the execution, delivery and performance of this Agreement and
      the
      Notes will not result in any material violation of or be in material conflict
      with or constitute a material default under any such term; and there is no
      such
      term which materially adversely affects the business, condition (financial
      or
      other), operations, assets, or properties of the Company, taken as a
      whole.

    

    4.11 Governmental
      Consent.
      No material
      consent, approval or authorization of, or declaration or filing
      with, any
      governmental authority on the part of the Company or any of its Subsidiaries
      is
      required for the valid execution and delivery of this Agreement or the valid
      offer, issue, sale and delivery of the Notes pursuant to this Agreement, except
      where the failure to obtain such consent or make such filing would not have
      a
      material adverse effect on the business, operations or assets of the Company,
      and except for appropriate filings (i) with the Commission and the NASDAQ of
      an
      SEC
      Form D, (ii) with the NASDAQ of an additional listing application for the
      Shares, and (iii) with such state securities commissions in respect of "blue
      sky" laws as may be appropriate. 

    

    4.12 Use
      of
      Proceeds.
      The Company will
      apply the net proceeds of the sale of the Notes principally for funding the
      Company's acquisition program, for working capital, and for general corporate
      purposes, including capital expenditures.

    

    4.13 Solvency.
      On the Closing
      date and after giving effect to the application of the proceeds of the Notes
      as
      specified in Section 4.12, the Company will be Solvent.

    

    4.14 Disclosure.
      To the best of
      the Company's knowledge, there is no fact (other than matters of a general
      economic or political nature which does not affect the Company uniquely) known
      to the Company
      which materially
      adversely affects the business, condition (financial or other), operations,
      assets or properties of the Company which has not been set forth either in
      the
      Company Commission Filings,
      the Private
      Placement Memorandum dated as of December 5, 2006, or in this Agreement or
      in
      the other documents, certificates and instruments delivered to the Purchasers
      by
      or on behalf of the Company specifically for use in connection with the
      transactions contemplated by this Agreement.

    

    V. SUBORDINATION.

    

    5.1 Agreement
      to Be
      Bound.
      (a) The Company
      covenants and agrees, and each holder of Notes by such holder's acceptance
      thereof, likewise covenants and agrees, that the Notes shall be issued subject
      to the provisions contained in this Article V; and each person holding any
      Notes, whether upon original issue or upon transfer or assignment thereof,
      accepts and agrees to be bound by such provisions.

    

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    

    

    (b) All
      Notes shall, to
      the extent and in the manner hereinafter set forth, be subordinated and subject
      in right of payment to the prior payment in full of all Senior Indebtedness
      (as
      defined in Section 5.7).

    

    5.2 Priority
      of
      Senior Indebtedness.
      (a) No payment on
      account of principal or interest on the Notes shall be made, nor shall any
      assets be applied to the purchase or other acquisition or retirement of the
      Notes, if, at the time of such payment or application or immediately after
      giving effect thereto, there shall exist a default in the
      payment of any
      amount due on any Senior Indebtedness. Within ten (10) Business Days after
      knowledge of any such default referred to in this Section 5.2(a), the Company
      shall furnish a copy thereof to each holder of the Notes,
      in the
      manner and at the address specified pursuant to Article XVIII
      hereof.

    

    (b) If
      there shall have
      occurred an event of default (other than a default in the payment of any amount
      due) with respect to any issue of Senior Indebtedness, as defined herein, or
      in
      the instrument under which the same has been issued, permitting the holders
      thereof, after notice or lapse of time, or both, to accelerate the maturity
      thereof, then, unless and until such event of default shall have been cured
      or
      waived or shall have ceased to exist, no payment on account of principal or
      interest on the Notes shall be made, nor shall any assets be applied to the
      conversion, redemption or other acquisition or retirement of the Notes until
      the
      earlier to occur of (i) the date on which the Senior Indebtedness to which
      such
      event of default related is discharged in accordance with its terms, or (ii)
      the
      date such event of default is waived by the holders of such Senior Indebtedness
      or otherwise cured. Within ten (10) Business Days after knowledge of any such
      default referred to in this Section 5.2(b), the Company shall furnish a copy
      thereof to each holder of the Notes, in the manner and at the address specified
      pursuant to Article XVIII hereof. 

    

    (c) Upon
      the occurrence
      and during the continuance of any Event of Default under this Agreement or
      the
      Notes, or upon the occurrence of an event described in Sections 5.2(a) or (b)
      which gives rise to the non-payment of principal or interest due on the Notes,
      and notwithstanding any other provision contained herein or in the Notes to
      the
      contrary, each Purchaser hereby agrees, for the benefit of the holders of Senior
      Indebtedness, not to ask for, demand, sue for, take or receive any amount owing
      under the Notes or exercise any remedy (whether pursuant hereto, including,
      without limitation, acceleration of the Notes, at law, in equity or otherwise)
      with respect thereto until the earliest of (i) the date on which all Senior
      Indebtedness is accelerated, (ii) if applicable, the date on which the Senior
      Indebtedness to which such event of default related is discharged in accordance
      with its terms or such event of default is waived by the holders of such Senior
      Indebtedness or otherwise cured or (iii) any voluntary or involuntary petition
      in bankruptcy filed by or against the Company. Within ten (10) Business Days
      after knowledge of any Event of Default under this Agreement or the Notes,
      the
      Company shall furnish a copy thereof to the holders of Senior Indebtedness
      in
      the manner and at the addresses specified in the documents and/or agreements
      evidencing the applicable Senior Indebtedness.

    

    5.3 Acceleration
      of
      Notes; Insolvency.
      (a) Upon (i) any
      acceleration of the principal amount due on the Notes or Senior Indebtedness
      or
      (ii) any payment or distribution of assets of the Company of any kind or
      character, whether in cash, property or securities, to creditors upon any
      dissolution or winding up or total or partial liquidation or reorganization
      of the
      Company, whether voluntary or involuntary or in bankruptcy, insolvency,
      receivership or other proceedings, all amounts due or to become due upon all
      Senior Indebtedness shall first be paid in full, or payment thereof duly
      provided for, to the full satisfaction of the holders of Senior Indebtedness
      before the holders of the Notes
      shall be
      entitled to receive or retain any assets so paid or distributed in respect
      thereof; and upon any such dissolution or winding up or liquidation or
      reorganization, any payment

    

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    or
      distribution
      of assets
      of the Company of any kind or character, whether in cash, property or
      securities, to which the holders of the Notes
      would be
      entitled, except for these provisions, shall be paid by the Company or by any
      receiver, trustee in bankruptcy, liquidating trustee, agent or other person
      making such payment or distribution,
      or by the
      holders of the Notes
      if received
      by them or it, as the case may be, directly to the holders of Senior
      Indebtedness, to the extent necessary to pay all such Senior Indebtedness in
      full, after giving effect to any concurrent payment or distribution
      to or for
      the holders of Senior Indebtedness before any payment or distribution is made
      to
      the holders of the Notes,
      except that
      the holders of Senior Indebtedness of the type described in clause (i) of the
      definition of Senior Indebtedness shall be
      entitled to
      receive payment in full of such Senior Indebtedness (or provisions satisfactory
      to the holders of such Senior Indebtedness shall be made for such payment)
      before the holders of other types of Senior Indebtedness shall be entitled
      to
      receive payment on such other Senior Indebtedness.

    

    (b) In
      the event that,
      notwithstanding the provision of the preceding paragraph or of Section 5.2
      hereof, any payment or distribution of assets of the Company prohibited by
      the
      preceding paragraph or by Section 5.2 hereof shall be received by the holders
      of
      the Notes before all Senior Indebtedness is paid in full, or provision made
      for
      such payment, to the full satisfaction of the holders of Senior Indebtedness,
      in
      accordance with its terms, such payment or distribution shall be held in trust
      for the benefit of, and shall be paid over or delivered to, the holders of
      Senior Indebtedness or their representative or representatives, or to the
      trustee or trustees under any indenture pursuant to which any instruments
      evidencing any Senior Indebtedness may have been issued, as their respective
      interests may appear, for application to the payment of all Senior Indebtedness
      remaining unpaid to the extent necessary to pay all Senior Indebtedness in
      full
      in accordance with its terms, after giving effect to any concurrent payment
      or
      distribution to or for the holders of such Senior Indebtedness. All payments
      applied to Senior Indebtedness pursuant to this paragraph of Section 5.3 shall
      be allocated among the holders of Senior Indebtedness in accordance with the
      provisions of the preceding paragraph of this Section 5.3.

    

    5.4 Subrogation,
      Etc.
      Upon payment in
      full of all Senior Indebtedness, the holders of Notes shall be subrogated to
      the
      rights of the holders of Senior Indebtedness to receive payments or
      distributions of assets of the Company pro rata
      in proportion to
      the respective amounts then owing to the holders of Notes; and for purposes
      of
      such subrogation, no payments or distributions to the holders of Senior
      Indebtedness of
      any cash,
      property or securities to which the holders of Notes
      would be
      entitled except for the provisions of this Article V, and no payment over
      pursuant to such provisions to the holders of Senior Indebtedness, shall, as
      between the Company and its creditors
      (other than
      the holders of Notes
      and the
      holders of the Senior Indebtedness), be deemed to be a payment by the Company
      to
      or on account of Senior Indebtedness, it being understood that the provisions
      of
      this Article V are and are intended solely for the purpose of defining the
      relative rights of the holders of Notes on the one hand and the holders of
      Senior Indebtedness on the other hand. The holders of Senior Indebtedness may
      amend, modify and otherwise deal with Senior Indebtedness without any
      notice
      to or approval of any holder of Indebtedness ranking junior to Senior
      Indebtedness.

    

    5.5 Enforcement.
      (a) The foregoing
      subordination provisions shall be for the benefit of the holders of Senior
      Indebtedness and may be enforced directly by such holders
      against the
      holders of the Notes.
      Each holder
      of Notes by his (or its) acceptance thereof shall be deemed to acknowledge
      and
      agree that the subordination provisions of this Article V are, and are intended
      to be, an inducement and a consideration to each holder of any Senior
      Indebtedness, whether such Senior Indebtedness was created or acquired before
      or
      after the issuance of the Notes, to acquire and continue to hold, or to continue
      to hold, such Senior Indebtedness and each holder of Senior

    

    
      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    

    

    Indebtedness
      shall be deemed
      conclusively to have relied on such subordination provisions in acquiring and
      continuing to hold, or in continuing to hold, such Senior
      Indebtedness.

    

    (b) Upon
      any payment or
      distribution of assets of the Company, the holders of the Notes shall be
      entitled to rely upon a certificate of the receiver, trustee in bankruptcy,
      liquidation trustee, Company, agent or other person making such payment or
      distribution, delivered to the holders of the Notes, for the purpose of
      ascertaining the persons entitled to participate in such distribution, the
      holders of the Senior Indebtedness and other indebtedness of the Company, the
      amount thereof or payable thereon, the amount or amounts paid or distributed
      thereon and all other facts pertaining thereto or to the provisions of this
      Article V.

    

    5.6 Obligations
      Unimpaired.
      Nothing contained
      in this Article V, or elsewhere in this Agreement, or in the Notes, is intended
      to or shall impair as between the Company, its creditors other than the holders
      of Senior
      Indebtedness, and
      the holders of the Notes,
      the
      obligation of the Company, which shall be absolute and unconditional, to pay
      the
      holders of the Notes the principal of and interest on the Notes as and when
      the
      same shall become due and payable in accordance with the terms thereof, or
      affect the relative rights of the holders of the Notes and other creditors
      of
      the Company other than the holders of Senior Indebtedness, nor shall anything
      herein or therein prevent the holder of any Notes from exercising all remedies
      otherwise permitted by applicable law upon default under this Agreement, subject
      to the rights, if any, under this Article V of the holders of Senior
      Indebtedness in respect to cash, property or securities of the Company received
      upon the exercise
      of any such
      remedy. Nothing contained in this Article V
      or elsewhere in
      this Agreement, or in any of the Notes, shall prevent the Company from making
      payment of the principal of or interest on the Notes at any time except under
      the conditions described in Section 5.2 or 5.3 or during the pendency of any
      dissolution, winding up, liquidation or reorganization of the
      Company.

    

    5.7 Definition
      of
      Senior Indebtedness.
      The term "Senior
      Indebtedness" shall mean the principal and interest on (i) all Indebtedness
      of
      the Company and its Subsidiaries for money borrowed from time to time, including
      that owing to banks or other financial institutions, an agency or
      agencies
      of the federal
      government or other institutions engaged in the business of lending money,
      (ii)
      all Capital Leases of the Company and its Subsidiaries, (iii) obligations of
      the
      Company for the reimbursement of any obligor on any Letter of Credit, banker's
      acceptance or similar credit transaction, and (iv) any deferrals, renewals
      and
      extensions of any indebtedness described in clauses (i) through (iii) above,
      unless under the express provisions of the instrument creating or evidencing
      any
      such indebtedness, or pursuant to which the same is outstanding, such
      indebtedness is not superior in right of payment to the Notes;
provided,
however,
      that Senior
      Indebtedness shall not include Indebtedness owed or owing to any Subsidiary
      or
      any officer, director or employee of the Company or any Subsidiary. For purposes
      hereof, the Senior Indebtedness includes any and all Indebtedness under the
      Senior Secured Credit Facility, including without limitation Indebtedness
      arising under letters of credit.

    

    5.8 Amendment.
      Subject to
      Article XVI, it is understood and agreed that the terms of this Article V may
      be
      subject to change in accordance with the terms that a senior lender that
      provides Senior Indebtedness to the Company may request.

    

    VI. REPRESENTATIONS
      OF
      THE PURCHASERS.

    

    6.1 Resale
      Restrictions.
      Each Purchaser
      hereby represents that it is capable of evaluating the risk of its investment
      in
      the Notes and is able to bear the economic risk of such investment, that it
      is
      purchasing the Notes for its own account (or as trustee for one or more trust
      or
      pension funds) and that in each such case the Notes are being purchased by
      such
      Purchaser (or

    

    
      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

    

    such
      funds) for
      investment and not with a view to any resale or distribution thereof in
      violation of securities laws or of the Shares issuable upon conversion thereof.
      If any Purchaser should in the future decide to dispose of
      the Notes
      or the Shares
      (which it does not now contemplate), it is understood that it may do so only
      in
      complete compliance with the Securities Act and any applicable state Blue Sky
      or
      securities laws. If Purchaser is purchasing the Notes as trustee for one or
      more
      trust or pension funds, it represents that it is acting as sole trustee and
      has
      sole investment discretion and that the determination and decision on its behalf
      to purchase the
Notes
      for all such
      funds is being made by the same individual or group of individuals who
      customarily approves such investments.

    

    6.2 Accredited
      Investor.
      Each Purchaser
      hereby represents that it is an "accredited investor" within the meaning of
      Regulation D of the General Rules and Regulations promulgated under the
      Securities
      Act
      ("Regulation D") and hereby agrees to provide the Company and its counsel with
      such information (including, but not limited to, a completed and signed
      Confidential Purchaser Questionnaire in the form of Exhibit
      "C"
      attached hereto)
      as is reasonably necessary to enable the Company to file a Form D with the
      Commission with respect to the transactions contemplated hereby. In furtherance
      of the foregoing, each Purchaser acknowledges
      that a purchase
      of the Notes
      is only
      available to a Purchaser who is an "accredited investor." In connection
      therewith, each Purchaser represents and warrants to the Company that it
      qualifies as an "accredited investor" within the meaning of
      Regulation
      D, since
it
      meets one of the following standards for determination of "accredited investor"
      status of Regulation D set forth below:

    

    
      	 	
              (a)

            	
              Any
                broker or
                dealer registered pursuant to Section 15 of the Exchange
                Act;

            

    

    

    
      	 	
              (b)

            	
              Any
                natural
                person whose individual net worth, or joint net worth with that person's
                spouse, at the time of his purchase ex-ceeds
                $1,000,000;

            

    

    

    
      	 	
              (c)

            	
              Any
                natural
                person who had an individual income in excess of $200,000 in each
                of the
                two most recent years or joint in-come with that person's spouse
                in excess
                of $300,000 in each of those years and has a reasonable expectation
                of
                reaching the same income level in the current
                year;

            

    

    

    
      	 	
              (d)

            	
              Any
                trust,
                with total assets in excess of $5,000,000, not formed for the specific
                purpose of acquiring the securities offered, whose purchase is directed
                by
                a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation
                D;

            

    

    

    
      	 	
              (e)

            	
              Any
                organization described in Section 501(c)(3) of the Internal Revenue
                Code
                of 1986, as amended, corporation, Massa-chusetts or similar business
                trust, or partnership, not formed for the specific purpose of acquiring
                the securities offered, with total assets in excess of $5,000,000;
                or

            

    

    

    
      	 	
              (f)

            	
              Any
                entity in
                which all of the equity owners are "accredited
                investors".

            

    

    

    6.3 Review
      of
      Information.
      Each Purchaser
      hereby represents that it (i) has received and carefully reviewed (A) the
      Company Commission Filings and (B) the Private Placement Memorandum, and
      (ii) has had the opportunity to ask questions and receive answers from
      the

    

    
      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    

    

    Company
      concerning
      the Company Commission Filings, the Private Placement Memorandum, and the terms
      and conditions of the offering of the Notes, and to obtain any documents
      relating to the Company which are publicly available and any additional
      information or documents relating to the Company which the Company possesses
      or
      can acquire without
      unreasonable
      effort or expense.

    

    6.4 Due
      Authority.
      Each Purchaser
      hereby represents that the execution, delivery and performance by it of this
      Agreement and the purchase by it of the Notes (i) has been duly authorized
      by
      all requisite action on the part of such Purchaser, (ii) does not violate any
      charter, bylaws, partnership agreement, trust instrument or other organizational
      document applicable to such Purchaser, and (iii) does not
      violate any
      material term of any law, rule, regulation, court order, judgment or contractual
      or other obligation applicable to such Purchaser, the consequences of which
      violation might have a materially adverse effect on the business, condition
      (financial or other), operations, assets or properties of such
      Purchaser.

    

    VII. CERTAIN
      CONSIDERATIONS.
      The Purchasers
      acknowledge that they are aware of the risks inherent in an investment in the
      Company and specifically the risks of an investment in the Notes, and that
      they
      are capable of bearing a complete loss of such investment. In connection with
      and in furtherance of the foregoing, each Purchaser further acknowledges that
      it
      has received and carefully reviewed the Private Placement Memorandum (including
      the Risk Factors contained therein) relating to the Notes, and that it is aware
      that (i) the Company currently contemplates growth through an acquisition
      strategy, and that there can be no assurance that such acquisition strategy
      will
      be successfully implemented, (ii) the Company will incur costs in
      connection
      with pursuing
      such acquisition strategy, whether or not any such acquisitions are completed,
      (iii) dilution may result in the event that acquisitions are completed by
      issuing stock in the Company as consideration, in whole or in part, for such
      acquisitions, and (iv) there can be no assurance of the future viability or
      profitability of the Company, nor can there be any assurance relating to the
      current or future price
      of the Company's
      Common Stock.

    

    VIII. CONDITIONS
      TO
      OBLIGATIONS.
      The Purchasers'
      obligation to purchase the Notes hereunder is subject to satisfaction of the
      following conditions at the Closing:

    

    8.1 Accuracy
      of
      Representations and Warranties.
      The
      representations and warranties of the Company herein or in any certificate
      or
      document delivered pursuant hereto shall be true and
      correct on and
      as of the Closing Date with the same effect as though made on and as of the
      Closing Date. 

    

    8.2 Performance;
      No
      Default.
      The Company shall
      have performed and complied, in each case in all material respects, with all
      material agreements and conditions contained in this Agreement required to
      be
      performed or complied with by it prior to or at the Closing and at the
      time
      of the Closing, no Event of Default shall have occurred and be
      continuing.

    

    8.3 Officers'
      Certificate.
      The Purchasers
      shall have received a certificate dated the Closing Date and signed by the
      President, a Vice President or Chairman or Vice Chairman of the Company and
      by
      the Secretary, the Treasurer, an Assistant Secretary or
      an Assistant
      Treasurer of the Company, to the effect that the conditions of Sections
8.1
      and 8.2 hereof have been satisfied.

    

    8.4 Proceedings.
      All corporate and
      other proceedings in connection with the transactions contemplated by this
      Agreement and all documents incident thereto shall be in form and substance
      reasonably
      satisfactory to you, and your counsel shall have received all such originals
      or
      certified or other copies of such documents as you and they may reasonably
      request.

    

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

     

    8.5 Legal
      Investment.
      On the Closing
      Date, there shall have been no change in applicable law or material facts in
      respect of the Company or any Purchaser, making the purchase of the Notes no
      longer a legal investment for any Purchaser.

    

    8.6
 No
      Litigation.
      No action, suit
      or proceeding before any court or any governmental or regulatory authority
      shall
      have been commenced and still be pending, and no investigation by any
      governmental or regulatory authority
      shall have been
      commenced and still be pending, against the Company seeking to restrain, prevent
      or change the transactions contemplated hereby or questioning the validity
      or
      legality of any of such transactions. 

    

    8.7 Sales
      to Other
      Purchasers.
      The Company shall
      have concurrently sold to the other Purchasers the Notes to be purchased by
      each
      of them at the Closing and shall have received payment in full therefor and
      shall have delivered or caused to be delivered to each of the other Purchasers
      such Notes in accordance with the terms hereof.

    

    8.8 Purchase
      Permitted by Applicable Laws.
      The offering,
      issuance, purchase and sale of, and payment for, the Notes to be purchased
      by
      the Purchasers on the Closing date on the terms and conditions herein provided
      (including the use of the proceeds of such Notes by the Company) shall not
      violate any law or governmental regulation applicable to the
      Purchasers.

    

    8.9 Compliance
      with
      Securities Laws.
      The offering and
      sale of the Notes at or prior to the Closing under this Agreement shall have
      complied in all material respects with all applicable requirements of federal
      and state securities
      laws.

    

     

    IX. AFFIRMATIVE
      COVENANTS.

     

    9.1 Financial
      Information.
      The Company and
      each Subsidiary will maintain its books and records in accordance with generally
      accepted accounting principles. So long as any of the Notes shall remain
      outstanding, the Company will deliver to each holder of the Notes:

    

    (a) as
      soon as
      practicable, and in any event within 105 days after the close of each fiscal
      year of the Company, (i) a consolidated balance sheet of the Company and its
      Subsidiaries as of the
      end of such
      fiscal year-end, and (ii) consolidated statements of income, cash flow and
      common stock and other stockholders' equity of the Company and its Subsidiaries
      for such fiscal year, in each case setting forth in comparative form the
      corresponding figures for the preceding fiscal year and to be in reasonable
      detail and certified without material exception by BDO
      Seidman LLP or
      other nationally recognized independent public accountants selected by the
      Company; provided,
however,
      that the timely
      filing of the Annual Report on Form 10-K of the Company for such fiscal year
      with the Commission (together with copies of the financial statements required
      to be included therein) shall be deemed to satisfy the requirements of this
      clause (a);

    

    (b) as
      soon as
      practicable, and in any event within 50 days after the close of each of the
      first three fiscal quarters of the Company during such fiscal year, (i) a
      consolidated balance sheet of the Company and its Subsidiaries
      as of the
      end of such fiscal quarter, and (ii) consolidated statements of income, cash
      flow and common stock and other stockholders' equity of the Company and its
      Subsidiaries for the portion of the fiscal year ended with the end of such
      quarter, in each case setting forth in comparative form the corresponding
      figures for the comparable period of the preceding fiscal year; provided,

    

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

    however,
      that the timely
      filing of the Quarterly Report on Form 10-Q of the Company for such quarterly
      period timely with the Commission shall be deemed to satisfy the requirements
      of this
      clause (b);

    

    (c) as
      soon as
      practicable, copies of all financial statements, proxy materials or reports
      sent
      to the Company's stockholders and of all final registration statements filed
      with the Commission pursuant to the Securities Act or the Exchange Act;
      and

    

    (d) with
      reasonable
      promptness, such other information and data with respect to the Company or
      any
      of its Subsidiaries as from time to time may be reasonably
      requested.

    

    9.2 Office
      for
      Payment, Exchange and Registration.
      So long as any of
      the Notes are outstanding, the Company will maintain an office or agency in
      the
      United States where the Notes may be presented for payment, conversion, exchange
      or registration of transfer as provided in this Agreement. Such office or agency
      initially
      shall be
      the office of the Company set forth in Article
      XVIII
      hereof, which place may thereafter from time to time be changed by notice to
      the
      holders of all Notes then outstanding.

    

    9.3 Notices.
      The Company will
      give notice to all holders of Notes within five Business Days after it learns
      of
      the existence of any Event of Default or any event which, with the giving of
      notice or the lapse of time or both, would become an Event of Default,
      describing the same and the period of existence thereof, and what
      action the
      Company has taken, is taking or proposes to take with respect
      thereto.

    

    9.4 Corporate
      Existence, Etc.
      The Company will
      at all times preserve and keep in full force and effect its corporate existence,
      and rights and franchises deemed material
      to its business,
      and those of each of its material Subsidiaries, except
      that the
      corporate existence of any Subsidiary of the Company may be terminated if,
      in
      the good faith judgment of the Board
      of Directors,
      such termination is in the best interest of the Company.

    

    9.5 Payment
      of
      Taxes.
      The Company will,
      and will cause each of its Subsidiaries to, pay all taxes, assessments and
      other
      governmental charges imposed upon it or any of its properties or assets
      or in respect
      of any of its franchises, business, income or profits before any penalty or
      interest accrues thereon, provided
      that no such tax,
      assessment, charge or claim need be paid if being contested in good faith by
      appropriate proceedings promptly
      initiated and
      diligently conducted and if such reserve or other appropriate provision, if
      any,
      as shall be required by generally accepted accounting principles shall have
      been
      made therefor.

    

    9.6 Maintenance
      of
      Properties; Insurance.
      The Company will
      maintain or cause to be maintained in reasonably good repair, working order
      and
      condition, normal wear and tear excepted, all material properties used in the
      business of the Company and its
      Subsidiaries.
      The Company will maintain or cause to be maintained, with financially sound
      and
      reputable insurers, insurance with respect to its properties and business and
      the properties and business of its Subsidiaries against loss or damage of the
      kinds customarily insured against by corporations of established reputation
      engaged in the same or similar business and similarly situated, of such types
      and in such amounts as are customarily carried under similar circumstances
      by
      such other corporations.

    

    
      
        
          
          

        

        
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    9.7 Compliance
      with
      Laws.
      The Company will,
      and will cause each Subsidiary to, comply in all material respects with all
      applicable laws, ordinances, rules, regulations, and requirements of
      governmental authorities except where (i) noncompliance could not reasonably
      be
      expected to have a material adverse effect on the business, operations or
      condition (financial or otherwise) of the Company and its Subsidiaries, taken
      as
      a whole, or (ii) the necessity of compliance therewith is contested in good
      faith by appropriate proceedings.

     

    X. NEGATIVE
      COVENANTS. The
      Company
      covenants and agrees as follows:

    

    10.1 Transactions
      with Affiliates.
      The Company will
      not, and will not permit any of its Subsidiaries to, directly or indirectly,
      engage in any transaction, including, without limitation, the purchase, sale
      or
      exchange of assets or the rendering of any service,
      with any Affiliate
      of the Company, except in the ordinary course of and pursuant to the reasonable
      requirements of the Company's or such Subsidiary's business and upon fair and
      reasonable terms that are no less favorable to the Company or such Subsidiary,
      as the case may be, than those which might be obtained in an arm's length
      transaction at the time from persons which are not Affiliates, provided
      that the foregoing
      restrictions shall not apply to any transaction between the Company and a
      wholly-owned Subsidiary of the Company or between one wholly-owned Subsidiary
      of
      the Company and another wholly-owned Subsidiary
      of the
      Company. 

    

    10.2 Restricted
      Indebtedness.
      The Company will
      not, directly or indirectly, incur any Indebtedness the proceeds of which will
      be used to pay dividends upon shares of the Company's Common Stock or any other
      capital stock of the Company
      that may from
      time to time be outstanding.

    

    10.3 Guaranties
      by
      Subsidiaries.
      Other than in the
      ordinary course of business or to the holders of Senior Indebtedness, or unless
      the holders of a majority in principal amount of the Notes shall approve, the
      Company shall cause its Subsidiaries not to guaranty the Indebtedness of the
      Company or of any other party.

     

    XI. DEFAULTS.
      If
      any
      of the following events (herein called an "Event of Default") shall occur and
      be
      continuing:

    

    (a) If
      the Company
      shall default in the payment (whether or not such payment is prohibited under
      Article V hereof) of (i) any part of the principal on any Note, when the same
      shall become due and payable, whether at maturity or by acceleration or
      otherwise, or (ii) the interest on any Note, when the same shall become due
      and
      payable, and such default in the payment of interest shall have continued for
      five (5) days;

    

    (b) If
      the Company
      shall default in the performance of any agreement or covenant contained in
      this
      Agreement or the Notes and such default shall continue for thirty (30) days
      after notice thereof from any holder of a Note; or 

    

    (c) If
      any
      representation or warranty by the Company herein or any certificate delivered
      by
      the Company pursuant hereto shall prove to have been incorrect in any material
      respect when made; or 

    

    (d) If
      (i) the Company
      shall fail to make any payment in respect of any Indebtedness when due or within
      any applicable grace period; or (ii) any other event of

    

    
      
        
          
          

        

        
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    default,
      as defined
      in any
      material indenture or material instrument evidencing or under which there is
      at
      the time outstanding any Indebtedness of the Company, shall occur which (1)
      results in the acceleration of the maturity of such Indebtedness or (2) enables
      (or, with the giving of notice, would enable) the holder of such Indebtedness
      or
      any person acting on such holder's behalf to accelerate the maturity thereof
      if,
      in the case of subclause (2)
      hereof, such
      event or condition has been in existence for 180 days without being cured or
      waived; provided,
that,
      the aggregate
      principal amount of the Indebtedness referred to in clause (i) or (ii)
      (together with any other defaulted Indebtedness) exceeds $5,000,000; or

    

    (e) If
      a final judgment
      which, either alone or together with other outstanding final judgments against
      the Company and its Subsidiaries, exceeds an aggregate of $5,000,000 shall
      be
      rendered against the Company or any Subsidiary and such judgment shall have
      continued undischarged or unstayed for sixty (60) days after entry thereof;
      or

    

    (f) If
      the Company or
      any Subsidiary shall make an assignment for the benefit of creditors, or shall
      admit in writing its inability to pay its debts; or if the Company or any
      Subsidiary shall suffer the appointment of a receiver or trustee for it or
      substantially all of its assets and, if appointed without its consent, not
      to be
      discharged or stayed within sixty (60) days; or if the Company or any Subsidiary
      shall suffer proceedings under any law relating to bankruptcy, insolvency or
      the
      reorganization or relief of debtors to be instituted by or against it, and,
      if
      contested by it, not to be dismissed or stayed within sixty (60) days; or if
      the
      Company or any Subsidiary shall fail generally to pay its debts as they become
      due; or if the Company or any Subsidiary shall suffer any writ of attachment
      or
      execution or any similar process to be issued or levied against it or any
      significant part of its property with respect to claims in excess of $5,000,000,
      which is not released, stayed, bonded or vacated within sixty (60) days after
      its issue or levy; or if the Company or any Subsidiary takes corporate action
      in
      furtherance of any of the aforesaid purposes or conditions; or

    

    (g) If
      a Change in
      Control shall occur;

    

    then
      and in each
      such event the holders of forty percent (40%) or more in aggregate principal
      amount of the Notes then outstanding may at any time (unless all defaults shall
      theretofore have been remedied) at its or their option, by written notice or
      notices to the Company, declare all the Notes to be due and payable, whereupon
      the same shall forthwith mature and become due and payable, together with all
      interest accrued thereon, without presentment, demand, protest or notice, all
      of
      which are hereby waived; provided,
however,
      that this
      provision is subject to the condition that if, at any time after the principal
      of the Notes shall so become due and payable, any arrears of principal and
      interest on the Notes (with interest at the rate specified in the Notes on
      any
      overdue principal and, to the extent legally enforceable, on any interest
      overdue) shall be paid by or for the account of the Company, then the holder
      or
      holders of at least
      fifty-one percent
      (51%) in aggregate principal amount of the Notes
      then
      outstanding, by written notice or notices to the Company, may waive such Event
      of Default and its consequences and rescind or annul such declaration, but
      no
      such waiver shall extend to
      or affect any
      subsequent Event of Default or impair any right resulting therefrom;
provided,
further,
      that
      notwithstanding the foregoing, if there shall occur an Event of Default under
      clause (f) above, or a breach of the covenants contained in Section 10.3 hereof,
      then the Notes, together with all interest accrued thereon, shall immediately
      mature and become due and payable, without the necessity of any action by the
      Purchasers or notice to the Company. If any holder of a Note shall give any
      notice or take any other action with respect to a claimed default, the Company,
      forthwith upon receipt of such notice or obtaining knowledge of such other
      action, will give written notice thereof to
      all other
      holders of the Notes
      then
      outstanding, describing such notice or other action and the nature of the
      claimed default.

    

    
      
        
          
          

        

        
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    XII. CONVERSION.

     

    12.1 Conversion.
      Prior to the
      maturity of the Notes or, if sooner, the Call Date (as hereinafter defined),
      the
      holder of a Note shall have the right, at the option of such holder (whether
      or
      not payment upon the Notes is prohibited by the subordination provisions of
      Article V) to convert, subject to the terms and provisions of this Article
      XII,
      all or, subject to the proviso contained in this Section 12.1, any portion
      of
      the Notes held by such holder into the number of fully paid and nonassessable
      Shares as shall be equal to the aggregate principal amount of Notes then being
      converted divided by the Conversion Price then in effect, by delivery of the
      Notes to the Company at the office of the Company provided for in Article XVIII
      herein; provided,
however,
      that no holder of
      a Note shall be permitted to exercise its rights with respect to partial
      conversions as herein described unless each such holder of a Note elects to
      convert a minimum of at least $500,000 principal amount of its Note or any
      additional amounts in multiples of $250,000 principal amount of Notes;
provided,
further,
      that the Company
      shall not be required to issue any fractional shares in connection with any
      conversion pursuant to this Article XII. In the event that any Purchaser shall
      convert the Notes held by it, the Company shall, or shall direct its transfer
      agent to, issue to such Purchaser certificates for the Shares of Common Stock
      for which such Note is being converted in such denominations as are required
      for
      delivery to such Purchaser, and the Company shall, or shall direct its transfer
      agent to, thereupon deliver such certificates to or in accordance with the
      instructions of such Purchaser, in exchange for the Note held by such Purchaser,
      and, in the event the Purchaser is exercising less than the entire aggregate
      principal amount of Notes held by such Purchaser, the Company shall issue to
      such Purchaser a new Note, duly executed by the Company, in form and substance
      identical to the Note surrendered by such Purchaser, for the balance of the
      aggregate principal amount of Notes that have not been so
      converted.

    

    12.2 Delivery
      of
      Stock Certificates; Time Conversion Effective; No Adjustment for Interest or
      Dividends.
      (a) Within ten
      (10) Business Days after the surrender (as herein provided) of a Note for
      conversion, the Company shall deliver or cause to be delivered to or upon the
      written order of the holder of the Note so surrendered, certificates
      representing the number of fully paid and nonassessable Shares into which the
      Note may be converted. Subject to the following provisions of this Section
      12.2,
      such conversion shall be deemed to have been made at the close of business
      on
      the date that such Note shall have been surrendered for conversion at the office
      of the Company provided for in Section 9.2 (the "Conversion Date"), so that
      the
      rights of the holder of such Note as a holder thereof, shall cease at such
      time
      and the person or persons entitled to receive any of the Shares upon conversion
      of the Notes shall be treated for all purposes as having become the record
      holder or holders of such Shares at such time; provided,
however,
      that no such
      surrender on any date when the stock transfer books of the Company shall be
      closed, shall be effective to constitute the person or persons entitled to
      receive Shares upon such conversion as the record holder or holders of such
      Shares on such
      date, but such
      surrender shall be effective to constitute the person or persons entitled to
      receive such Shares as the record holder or holders thereof for all purposes
      at
      the close of business on the next succeeding day on which such stock transfer
      books are open or the Company is required to convert Notes.
      The Company
      will, at the time of such conversion, upon request of the holder of the Note,
      acknowledge in writing its continuing obligation to such holder in respect
      of
      any rights (including, without limitation, any right of registration of the
      Shares issued upon such conversion) to which such holder shall continue to
      be
      entitled under this
      Agreement after
      such conversion, provided,
that,
      the failure of
      such holder to make any such requests shall not affect the continuing obligation
      of the Company to such holder in respect of such rights. If the Company shall
      fail for any reason or for no reason to issue to the Holder within ten (10)
      Business Days of receipt of the Note for conversion, a certificate for the
      number of shares of Common Stock to which the Holder

    

    
      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

    

    is
      entitled, and if
      on or after such tenth Business Day the Holder purchases (in an open market
      transaction or otherwise) shares of Common Stock to deliver in satisfaction
      of a
      sale by the Holder of shares of Common Stock issuable upon such conversion
      that
      the Holder anticipated receiving from the Company (a "Buy-In"), then the Company
      shall, within ten (10) Business Days after the Holder's request and in the
      Holder's discretion, either (i) pay cash to the Holder in an amount equal to
      the
      Holder's total purchase price (including brokerage commissions, if any) for
      the
      shares of Common Stock so purchased (the "Buy-In Price"), at which point the
      Company's obligation to deliver such certificate (and to issue such shares
      of
      Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver
      to the Holder a certificate or certificates representing such shares of Common
      Stock and pay cash to the Holder in an amount equal to the excess (if any)
      of
      the Buy-In Price over the product of (A) such number of shares of Common Stock,
      times (B) the closing sales price on the date of conversion.

    

    (b) If
      the day for the
      exercise of the conversion right shall not be a Business Day, then such
      conversion right will automatically be deemed to be exercised on the next
      succeeding day which is a Business Day.

    

    (c) No
      adjustments in
      respect of interest or cash dividends shall be made upon conversion of any
      Note.
      The Company shall pay all unpaid interest on any Note so converted which has
      accrued to (but not including) the date upon which such conversion is deemed
      to
      have been effected in accordance with this Section 12.2.

    

    12.3 Notice
      to
      Holders of Election.
      Upon receipt of
      an election to convert by a holder of Notes pursuant to this Article XII, the
      Company shall, as soon as practicable, notify the holders of the remaining
      Notes
      of such election.

    

    12.4 Adjustment
      of
      Conversion Price.
      The Conversion
      Price shall be subject to adjustment as of the Closing Date as
      follows:

    

    (a) In
      case the Company
      shall, after the date hereof, (i) pay a stock dividend or make a distribution
      in
      shares of its capital stock (whether shares of its Common Stock or of capital
      stock of any other class), (ii) subdivide its outstanding shares of Common
      Stock, (iii) combine its outstanding shares of Common Stock into a smaller
      number of shares, or (iv) issue by reclassification of its shares of Common
      Stock any shares of capital stock of the Company, the Conversion Price in effect
      immediately prior to such action shall be adjusted so that the holder of a
      Note
      thereafter surrendered for conversion shall be entitled to receive an equivalent
      number of shares of capital stock of the Company which he would have owned
      immediately following such action had such Note been converted immediately
      prior
      thereto. Any adjustment made pursuant to this subsection (a) shall become
      effective immediately after the record date in the case of a dividend or
      distribution and shall become effective immediately after the effective date
      in
      the case of a subdivision, combination or reclassification.

    

    (b) In
      case the
      Company, after the date of this Agreement, shall issue rights, warrants or
      options entitling the recipients thereof to subscribe for or purchase shares
      of
      Common Stock (or securities convertible into Common Stock) at a price per share
      less than the Conversion Price then in effect, the Conversion Price in effect
      immediately prior thereto shall be adjusted so that it shall equal the price
      determined by multiplying the Conversion Price in effect immediately prior
      to
      the date of issuance of such rights, warrants or options by a fraction of which
      the numerator shall be the number of shares of Common Stock outstanding on
      the
      date of issuance of such rights, warrants or options (immediately

    

    
      
        
          
          

        

        
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    prior
      to such
      issuance), plus the number of shares of Common Stock which the aggregate
      offering price of the total number of shares of Common Stock so offered for
      subscription or purchase (or the aggregate conversion price of the convertible
      securities so offered to subscription or purchase) would purchase at the
      Conversion Price then in effect, and of which the denominator shall be the
      number of shares of Common Stock outstanding on the date of issuance of such
      rights, warrants or options (immediately prior to such issuance) plus the number
      of additional shares of Common Stock so offered for subscription or purchase
      (or
      into which the convertible securities so offered for subscription or purchase
      are convertible). Such adjustment shall be made successively whenever any such
      rights, warrants or options are issued. In determining whether any rights,
      warrants or options entitle the holders thereof to subscribe for or purchase
      shares of Common Stock (or securities convertible into Common Stock) at less
      than the Conversion Price then in effect and in determining the aggregate
      offering price of such shares of Common Stock (or conversion price of such
      convertible securities), there shall be taken into account any consideration
      received by the Company for such rights, warrants or options (and for such
      convertible securities), the value of such consideration, if other than cash,
      to
      be determined in good faith by the Board of Directors of the Company (which
      determination shall be conclusive). If at the end of the period during which
      such warrants, rights or options are exercisable not all such warrants, rights
      or options shall have been exercised, the adjusted Conversion Price shall be
      immediately readjusted to what it would have been based on the number of
      additional shares of Common Stock actually issued (or the number of shares
      of
      Common Stock issuable upon conversion of convertible securities actually
      issued).

    

    (c) 
      In case the
      Company, after the date of this Agreement, shall distribute to all holders
      of
      its outstanding Common Stock any shares of capital stock (other than Common
      Stock), evidences of its Indebtedness or assets (including securities and cash,
      but excluding any cash dividend paid out of current or retained earnings of
      the
      Company and dividends or distributions payable in stock for which adjustment
      is
      made pursuant to subsection (a) of this Section 12.4) or rights, warrants or
      options to subscribe for or purchase securities of the Company (excluding those
      referred to in subsection (b) of this Section 12.4), then in each such case
      the
      Conversion Price shall be adjusted so that the same shall equal the price
      determined by multiplying the Conversion Price in effect immediately prior
      to
      the record date of such distribution by a fraction of which the numerator shall
      be the Conversion Price then in effect less the fair market value on such record
      date (as determined in good faith by the Board of Directors of the Company,
      which determination shall be conclusive) of the portion of the capital stock
      or
      the evidences of Indebtedness or the assets so distributed to the holder of
      one
      share of Common Stock or of such subscription rights, warrants or options
      applicable to one share of Common Stock and of which the denominator shall
      be
      the Conversion Price then in effect. Such adjustment shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such distribution. If at the end of the period during which warrants,
      rights or options described in this subsection (c) are exercisable not all
      such
      warrants, rights or options shall have been exercised, the adjusted Conversion
      Price shall be immediately readjusted to what it would have been based on the
      number of warrants, rights or options actually exercised.

    

    (d) Notwithstanding
      anything in subsection (b) or (c) of this Section 12.4 to the contrary, with
      respect to any rights, warrants or options covered by subsection (b) or (c)
      of
      this Section 12.4, if such rights, warrants or options are only exercisable
      upon
      the occurrence of certain triggering events (including the occurrence of any
      date of vesting), then for purposes of this Section 12.4 such rights, warrants
      or options shall not be deemed

    

    
      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    

    

    issued
      or
      distributed, and any adjustment to the Conversion Price required by subsection
      (b) or (c) of this Section 12.4 shall not be made until such triggering events
      occur and/or such rights, warrants or options become exercisable.

    

    (e) In
      case the
      Company, after the date of this Agreement, shall issue shares of its Common
      Stock (excluding those rights, warrants, options, shares of capital stock or
      evidences of its Indebtedness or assets referred to in subsection (b) or (c)
      to
      this Section 12.4) at a net price per share less than the Conversion Price
      in
      effect on the date the Company fixes the offering price of such additional
      shares, the Conversion Price shall be reduced immediately thereafter so that
      it
      shall equal the price determined by multiplying such Conversion Price in effect
      immediately prior thereto by a fraction of which the numerator shall be the
      number of shares of Common Stock outstanding immediately prior to the issuance
      of such additional shares plus the number of shares of Common Stock which the
      aggregate offering price of the total number of shares of Common Stock so
      offered would purchase at the Conversion Price then in effect and the
      denominator shall be the number of shares of Common Stock that would be
      outstanding immediately after the issuance of such additional shares. Such
      adjustment shall be made successively whenever such an issuance is made. This
      subsection (e) shall not apply to Common Stock issued to any employee, officer
      or director of the Company under a bona fide employee or director benefit plan
      adopted by the Company or any Subsidiary thereof and approved by the
      stockholders of the Company or such Subsidiary, as appropriate.

    

    (f) In
      any case in
      which this Section 12.4 shall require that an adjustment be made immediately
      following a record date or an effective date, the Company may elect to defer
      (but only until five Business Days following the mailing by the Company to
      the
      holders of Notes of the certificate required by subsection (h) of this Section
      12.4) issuing to the holder of any Note converted after such record date or
      effective date the shares of Common Stock issuable upon such conversion over
      and
      above the shares of Common Stock issuable upon such conversion on the basis
      of
      the Conversion Price prior to adjustment, and paying to such holder any amount
      of cash in lieu of a fractional share.

    

    (g) No
      adjustment in
      the Conversion Price shall be required to be made unless such adjustment would
      require an increase or decrease of at least one percent (1%) in such price;
      provided,
however,
      that any
      adjustments which by reason of this subsection (g) are not required to be made
      shall be carried forward and taken into account in any subsequent adjustment.
      All calculations under this Section 12.4 shall be made to the nearest
      cent.

    

    (h) Whenever
      the
      Conversion Price is adjusted as provided in Section 12.4 herein, the Company
      will promptly mail to the holders of the Notes, a certificate of the Company's
      Treasurer or Chief Financial Officer setting forth the Conversion Price as
      so
      adjusted and a brief statement of facts accounting for such
      adjustment.

    

    (i) Irrespective
      of any
      adjustment or change in the Conversion Price and the number of Shares actually
      purchasable under the Notes, the Notes theretofore and thereafter issued may
      continue to express the Conversion Price per Share and the number of Shares
      purchasable thereunder as the Conversion Price per Share and the number of
      Shares purchasable as expressed upon the Notes when initially
      issued.

    

    12.5 Company's
      Consolidation or Merger.
      If the Company
      shall at any time consolidate or merge with or into another corporation, (a)
      the
      Company shall give at least five (5)

    

    
      
        
          
          

        

        
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    days
      prior written
      notice to the holders of the Notes of such consolidation or merger and the
      terms
      thereof, and (b) the holder of a Note shall thereafter be entitled to receive,
      upon the conversion thereof, the securities or property to which a holder of
      the
      number of Shares then deliverable upon the conversion thereof would have been
      entitled upon such consolidation
      or merger, and
      the Company shall take such steps in connection with such consolidation or
      merger as may be necessary to assure such holder that the provisions of this
      Agreement shall thereafter be applicable, as nearly as reasonably may be in
      relation to any securities or property thereafter deliverable upon the
      conversion of the Note
      including, but
      not limited to, obtaining a written acknowledgment from the continuing
      corporation or other appropriate corporation of its obligation to supply such
      securities or property upon such conversion. A sale of all or substantially
      all
      the assets of the Company shall be deemed a consolidation or merger for the
      foregoing purposes.

    

    12.6 Reserve
      of
      Sufficient Shares.
      The Company will
      reserve and keep available a sufficient number of shares of its Common Stock
      to
      satisfy the conversion requirements of all outstanding Notes. The Company will
      take all such action as may be necessary to insure that all Shares issued upon
      conversion of the Notes will be duly and validly authorized and issued and
      fully
      paid and nonassessable.

    

    12.7 Taxes
      on
      Conversion.
      The issuance of
      certificates for Shares upon the conversion of Notes shall be made without
      charge to the holders of Notes converting such Notes for any issue or stamp
      tax
      in respect of the issuance of such certificates, and such certificates shall
      be
      issued in the respective names of, or in such names as may be directed by,
      the
      holders
      of the
Notes
      converted; provided,
however,
      that the Company
      shall not be required to pay any tax which may be payable in respect of any
      transfer involved in the issuance and delivery of any such certificate in a
      name
      other than that of the holder of the
Note
      converted, and
      the Company shall not be required to issue or deliver such certificates unless
      or until the person or persons requesting the 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.

    

    12.8 Cancellation
      of
      Converted Notes.
      All Notes which
      have been converted shall be cancelled by the Company and no Notes shall be
      issued in lieu thereof.

    

    12.9 Notice
      to
      Holders of Notes.
      In case at any
      time:

    

    (a) the
      Company shall
      take any action which would require an adjustment in the Conversion Price
      pursuant to Section 12.4; or

    

    (b) there
      shall be any
      capital reorganization or reclassification of the Common Stock (other than
      a
      change in par value or from par value to no par value or from no par value
      to
      par value of the Common Stock), whether or not such reorganization or
      reclassification results in an adjustment in the Conversion Price, or any
      consolidation or merger to which the Company and its Subsidiaries is a party
      and
      for which approval of any stockholders of the Company is required, or any sale
      or transfer of all or substantially all of the assets of the Company and its
      Subsidiaries; or

    

    (c) there
      shall be a
      voluntary or involuntary dissolution, liquidation or winding-up of the
      Company;

    

    then,
      in any one or
      more of said cases, the Company shall give written notice to the holders of
      the
      Notes, not less than thirty (30) days before any record date or other date
      set
      for definitive action, of

    

    
      
        
          
          

        

        
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    the
      date on which
      such adjustment, distribution, reorganization, reclassification, sale,
      consolidation, merger, dissolution, liquidation or winding up shall take place,
      as the case may be. Such notice shall also set forth such facts as shall
      indicate the effect of such action (to the extent such effect may be known
      at
      the date of such notice) on the current Conversion Price and the kind and amount
      of the Shares and other securities and property deliverable upon conversion
      of
      the Notes. Such notice shall also specify the date as of which the holders
      of
      the Common Stock of record shall be entitled to exchange their Common Stock
      for
      securities or other property deliverable upon such adjustment, distribution,
      reorganization, reclassification, sale, consolidation, merger, dissolution,
      liquidation or winding up, as the case may be (on which date, in the event
      of
      voluntary or involuntary dissolution, liquidation or winding up of the Company,
      the right to convert the Notes into Shares shall terminate).

    

    Without
      limiting
      the obligation of the Company to provide notice to the holders of Notes or
      Shares of corporate action hereunder, it is agreed that failure of the Company
      to give such notice shall not invalidate such corporate action of the
      Company.

    

    XIII. CALL
      OF NOTES BY
      THE COMPANY.
      The Company shall
      not, directly or indirectly, call, prepay, redeem, repurchase, convert or
      otherwise acquire (any such event referred to herein as a “call”) any Notes or
      any portion thereof except as set forth in this Article XIII.

    

    13.1 Optional
      Conversion or Redemption Upon Call by the Company.
      (a) The Company
      may, at its option, call the Notes, either in whole or in part on a pro-rata
      basis as follows:

    

    
      	 	
              (i)

            	
              the
                Company
                shall not be permitted to make any such call from the date hereof
                through
                the first anniversary of the date
                hereof;

            

    

    

    
      	 	
              (ii)

            	
              from
                the
                first anniversary to the third anniversary of the date hereof, any
                call by
                the Company that results in a redemption or repurchase by the Company
                of
                the Notes for cash (as opposed to a conversion of the Notes to Common
                Stock at the Conversion Price, in which case the provisions of this
                Section 13.1(a)(ii) shall not apply), shall be at 105% of the original
                principal amount of the Notes that are the subject of such call;
                provided,
                however,
                that in the
                event that the Holder’s Election is exercised under such circumstance, the
                conversion shall be based upon 100% of the original principal amount
                of
                Notes to be so converted;

            

    

    

    
      	 	
              (iii)

            	
              after
                the
                third anniversary of the date hereof, any call by the Company that
                results
                in a redemption or repurchase by the Company of the Notes for cash
                (as
                opposed to a conversion of the Notes to Common Stock at the Conversion
                Price, in which case the provisions of this Section 13.1(a)(iii)
                shall not
                apply), shall be at 100% of the original principal amount of the
                Notes
                that are the subject of such call;
                and

            

    

    

    
      	 	
              (iv)

            	
              at
                any time
                after the first anniversary of the date hereof, the Company may call
                the
                Notes by requiring the Holders to convert the Notes to the Company’s
                Common Stock at the Conversion Price, in which case the Notes shall
                be
                valued at 100% of the original principal amount of Notes to be so
                converted; provided, however, with respect to this clause (iv) only,
                that
                the Company may call the Notes only if:

            

    

     

    
      
        
        

      

      
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    (A)
      the Closing
      Price of the Company's Common Stock shall be equal to or in excess of $7.00
      per
      share for at least 20 trading days during the 30-trading-day period immediately
      preceding the Call Notice (as hereinafter defined);
      and
      (B) upon a
      conversion pursuant to such call, the holders of the Notes shall receive
      registered shares of the Company's Common Stock.

     

    (b) In
      the event of a
      call by the Company to redeem or repurchase the Notes pursuant to this Section
      13.1, the Holders, at their election, may require the Company to convert their
      Notes into fully paid and nonassessable shares of the Company's Common Stock
      at
      the Conversion Price (the "Holder's Election").

    

    13.2 Notice
      of
      Call.
      The right of the
      Company to call any Notes pursuant to Section 13.1 shall be conditioned upon
      its
      giving notice of such call (the "Call Notice"), by personal delivery, overnight
      courier, certified mail or by facsimile, signed by an authorized officer, to
      the
      holders of Notes, not less than fifteen (15) Business Days prior to the date
      upon which the call is to be made (the "Call Date").
      The Call Notice
      shall specify (i) the aggregate principal amount of the Notes
      to be called
      and the manner in which such Notes are called (i.e., repurchase and redemption,
      or conversion into Shares), (ii) Call Date, and (iii) the accrued and unpaid
      interest thereon (to, but not including, the Call Date). Within ten (10)
      Business Days after receipt of the Call Notice by the Holder of a Note, such
      Holder shall notify the Company, by personal delivery, overnight courier,
      certified mail or by facsimile, signed
      by the
Holder,
      if it opts
      to exercise the Holder's Election, (in the event that a Holder fails to respond
      to the Call Notice or fails to respond within the time period or via the means
      set forth herein, the Holder's Election shall become void and of no further
      effect and the Company shall be entitled to call the Notes as set forth in
      the
      Call Notice). 

    

    13.3 Partial
      Call.
      In the event of a
      partial call by the Company pursuant to this Article XIII, the aggregate
      principal amount of each call of Notes pursuant to Section 13.1 hereof, shall
      be
      allocated among the Notes at the time outstanding, in proportion, as nearly
      as
      practicable, to the respective unpaid principal amounts of such
      Notes.

    

    13.4 Surrender
      of
      Notes Upon Call.
      In the event that
      any Notes shall be surrendered to the Company upon conversion as provided in
      this Article XIII, interest shall cease to accrue upon such Notes so
      surrendered. 

    

    13.5 Section
      12
      Applicable.
      For purposes of
      conversion of the Notes by the Company pursuant to this Article XIII, the
      provisions of Sections 12.1 through 12.4 herein, shall be controlling, as if
      the
      same shall have been contained in this Article XIII (except that with respect
      to
      Section 12.2, in the event that a holder shall choose redemption as the Holder's
      Election (pursuant to Section 13.2 herein), the Company shall make payment
      to
      the holder within five (5) days after the Conversion Date, by bank or certified
      check or by wire transfer).

    

    XIV. REGISTRATION
      RIGHTS; RESTRICTIONS ON TRANSFER.

    

    14.1 Notification
      of
      Proposed Sale.
      (a) Unless
      paragraph (b) of this Section 14.1 is applicable, each holder of a Note by
      acceptance thereof agrees that it will notify the Company in writing before
      offering for sale or selling or otherwise disposing
      (provided,
that,
      conversion will
      not be deemed to be a disposition) of any Note or the Shares, describing briefly
      the nature of such sale or other disposition, and no such sale or other
      disposition shall be made unless and until (i) the holder has supplied
      to the Company,
      if requested by the Company within five (5) Business Days after receipt of
      such
      notice, an opinion of counsel for the holder (in-house counsel of a
      Purchaser

    

    
      
        
          
          

        

        
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    shall
      be deemed to
      be satisfactory counsel) which counsel shall be reasonably satisfactory to
      the
      Company, to the effect that no registration under the Securities Act is required
      with respect to such sale or other disposition (which opinion may be conditioned
      upon the transferee's assuming the obligations of a holder of Notes
      or Shares
      under this Section 14.1) or (ii) an appropriate registration statement with
      respect to such sale or other disposition of such Notes or Shares shall have
      been filed by the Company with the Commission and declared effective by the
      Commission. 

    

    (b) If
      the holder of
      Notes or Shares has obtained an opinion of its own counsel that the sale of
      such
      Notes or Shares may be made without registration under the Securities Act
      pursuant to Rule 144, the notification provided in paragraph (a) need not be
      given to the Company prior to the proposed sale, provided,
that,
      the Company shall
      not be obliged to register on its registry or transfer books any transfer
      pursuant to this subsection (b) unless it is satisfied that the requirements
      of
      Rule 144 or any successor thereto
      have been
      satisfied.

    

    (c) The
      Company may
      endorse on all Notes and on all certificates evidencing Shares (issued upon
      conversion of the Notes) an appropriate legend restricting their transfer except
      upon compliance with the provisions of paragraph (a) above,
      which in the
      case of the Notes
      shall be in
      the terms set out in Exhibit "B" hereto and in the case of the Shares shall
      read
      as follows - "THE
      SHARES
      REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED (THE "ACT"). THE SHARES HAVE BEEN ACQUIRED FOR
      INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, ASSIGNED OR OTHERWISE
      DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THESE
      SHARES UNDER THE ACT OR AN OPINION, IF REQUESTED, OF COUNSEL SATISFACTORY TO
      THE
      COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT";
provided,
that,
      no such legend
      shall be endorsed on any Note or Share certificates which, when issued, are
      no
      longer subject to the restrictions of this Section 14.1, and provided,
further,
      that if an
      opinion of satisfactory counsel (in-house counsel of a Purchaser shall be deemed
      satisfactory counsel) which opinion shall be reasonably satisfactory to counsel
      for the Company concludes that the legend is no longer necessary, the
      Company will
      deliver upon transfer or exchange Notes
      or Share
      certificates without such legends. The legend set forth in this Section 14.1(c)
      shall be removed and the Company shall issue a certificate without such legend
      or any other legend to a Holder if (i) in connection with any sale of such
      Shares made pursuant to a registration statement and in accordance with the
      prospectus delivery requirements under the Securities Act, (ii) in connection
      with a sale, assignment or other transfer, such Holder provides the Company
      with
      an opinion of counsel, in form reasonably acceptable to the Company, to the
      effect that such sale, assignment or transfer of such Shares may be made without
      registration under the applicable requirements of the Securities Act and the
      legend may be removed from such certificate in connection with such sale,
      assignment or other transfer, or (iii) such Holder provides the Company with
      reasonable assurance that such Shares can be sold, assigned or transferred
      pursuant to Rule 144.
      The Company shall
      cause its counsel to issue a legal opinion in customary form to its transfer
      agent to affect such legend removal under the circumstances herein described.
      Following the effective date of any such registration statement, or at such
      earlier time as a legend is no longer required for certain Shares, the Company
      will no later than ten (10) Business Days following the delivery by a Purchaser
      to the Company or the Company’s transfer agent of a legended certificate
      representing such Shares, deliver or cause to be delivered to such Purchaser
      a
      certificate representing such shares that is free from all restrictive and
      other
      legends. Following the effective date and upon the delivery to any Purchaser
      of
      any certificate representing Shares that are free from all restrictive and
      other
      legends, such Purchaser agrees that any sale of such Shares shall be made
      pursuant to the registration statement and in accordance with the plan of
      distribution described therein or pursuant to an available exemption from the
      registration requirements of the Securities
      Act.

     

    
      
        
        

      

      
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    14.2 Obligation
      to
      Register.
      The Company
      agrees to use commercially reasonable efforts to file with the Commission no
      later than September 30, 2007, a registration statement for an offering to
      be
      made on a continuous or delayed basis pursuant to Rule 415 under the Securities
      Act covering all of the Shares. Such registration statement shall be on Form
      S-3
      under
      the Securities Act, if such Form is then available for use by the Company,
      or
      another appropriate form that is available to the Company permitting
      registration of such Shares for resale by the holders of Notes
      or Shares
      ("Holders") in the manner or manners reasonably designated by them (including,
      without
      limitation,
      one or more underwritten offerings). The Company shall not permit any securities
      to be offered for sale by the Company to be included in such registration
      statement. The Company shall use commercially
      reasonable efforts to cause such registration statement to be declared effective
      pursuant to the Securities Act as promptly as practicable following the filing
      thereof, and, subject to applicable laws, rules and orders, to keep such
      registration
      statement
      continuously effective under the Securities Act for five years after the Closing
      date, or such shorter period ending when there cease to be outstanding any
      Shares or Notes
      held by the
      Holders. Notwithstanding the foregoing, the Holders acknowledge that in
      connection with the Company's contemplated
      acquisition strategy, the Company may file a registration statement relating
      to
      shares of Common Stock to be issued in connection with such acquisition. In
      such
      event, if the Board of Directors of the Company reasonably determines that
      the
      Company will be filing a registration statement under the Securities Act in
      connection with an acquisition, then any registration statement required to
      be
      filed by this Section 14.2
      or Section
      14.3 hereof may be temporarily delayed at the discretion of the Company's Board
      of Directors, and the Shares which would have been otherwise included in such
      registration statement shall be included in the Company's registration statement
      to be filed in connection
      with the
      contemplated acquisition, so that the Company would not be required to file
      more
      than one registration statement in any consecutive six-month period;
provided,
however,
      that the
      provisions of this sentence shall not be applicable, and the Company shall
      not
      be permitted to delay the filing of a registration
      statement
      registering the Shares, in the event that the Company proposes, in connection
      with any such acquisition, to use a registration statement on Form S-4 or any
      successor form thereto. 

    

    14.3 "Piggyback"
      and
      Demand Registration Rights.

    

    (a)
“Piggyback”
      Registration Rights.
      If at any time
      after September 30, 2007 and prior to the maturity of the Notes during which
      there is no effective registration statement relating to the Shares, the Company
      shall, at least thirty (30) days prior to the filing of any registration
      statement under the Securities
      Act (other than
      a registration statement on Form S-8 or Form S-4 or any successor forms)
      relating to the public offering of its Common Stock by the Company or any of
      its
      security holders, give written notice of such proposed filing and of the
      proposed date thereof to the Holders, and if, on or before the twentieth (20th)
      day following the date on which such notice is given, the Company shall receive
      a written request from the Holders requesting that the Company include among
      the
      securities covered by such registration statement some or all of the Shares
      held
      by or to be held after conversion by such Holder or Holders, the Company shall
      include such Shares in such registration statement, if filed, so as to permit
      such Shares to be sold or disposed of in the manner and on the terms of the
      offering thereof set forth in such request.

    

    (b)
 Demand
      Registration Rights.
      If at any time
      after January 1, 2008 during which there is no effective registration statement
      relating to the Shares, the Company shall be requested
      in writing
      by the Holders holding at least a majority of the Shares to effect the
      registration under the Securities Act of the Shares, the Company shall, as
      expeditiously as possible,

    

    
      
        
          
          

        

        
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    use
commercially
      reasonable efforts to effect the registration, on a form of general use under
      the Securities Act, of all Shares which the Company has been requested to
      register. The Company shall not be obligated to cause to become effective more
      than one registration
      statement pursuant
      to which Shares are registered under this Section 14.3(b).
      Notwithstanding the foregoing, if the Company shall furnish to the Holders
      requesting a registration under this Section 14.3(b) a certificate signed by
      the
      Chief Executive Officer of the Company stating that in the good
      faith
      judgment of the Board of Directors of the Company it would be detrimental to
      the
      Company and its shareholders for such registration statement to be filed and
      it
      is therefore essential to defer the filing of such registration statement,
      the
      Company shall have the right to defer taking action with respect to such filing
      for a period of not more than 90 days after receipt of the request by the
      Holders; provided, however, that the Company may not utilize this right more
      than once in any 12-month period. In addition, the Company shall not be
      obligated to effect, or to take any action to effect, any registration pursuant
      to this Section 14.3(b):

    

    (i) During
      the period
      starting with the date 30 days prior to the Company’s good faith estimate of the
      date of filing of, and ending on a date 120 days after the effective date of,
      a
      registration subject to Section 14.3(a) hereto; provided that the Company is
      actively employing in good faith commercially reasonable efforts to cause such
      registration statement to be filed and thereafter to become effective;
      or

    

    (ii) If
      the Holders
      propose to dispose of Shares in the registration statement that may be
      immediately registered or that are registered on Form S-3 pursuant to a request
      made pursuant to Section 14.2 above.

    

    14.4 Terms
      and
      Conditions of Registration.
      Except as
      otherwise provided herein, in connection with any registration statement filed
      pursuant to Sections 14.2 or 14.3 herein, the following provisions shall
      apply:

    

    (a) If
      such
      registration statement shall be filed pursuant to Section 14.3(a) hereof and
      if
      the managing underwriter advises the Company in writing that the inclusion
      in
      such registration of some or all of the Shares sought to be registered by the
      Holder(s) creates a substantial risk that the proceeds or price per share that
      will be derived from such registration will be reduced or that the number of
      shares to be registered at the insistence of the Holder(s), plus the number
      of
      shares of Common Stock sought to be registered by the Company and any other
      stockholders of the Company is too large a number to be reasonably sold, then,
      in such event, the number of shares sought to be registered for the stockholders
      of the Company shall be reduced, pro rata
      in proportion to
      the number of shares sought to be registered to the number of shares recommended
      be sold by the managing underwriter.

    

    (b) If
      requested by the
      Holder(s) in connection with a registration statement filed pursuant to Sections
      14.2 or 14.3(b), the Company will enter into an underwriting agreement with
      the
      underwriters for such offering, such agreement to be reasonably satisfactory
      in
      form and substance to the Company, the Holder(s) and the underwriters, and
      to
      contain such representations, warranties and covenants by the Company and such
      other terms as are customarily contained in such agreements used by the managing
      underwriter, including, without limitation, restrictions of sales of Common
      Stock or other securities by the Company as may be reasonably agreed to between
      the Company and such underwriters, and indemnities and rights to contributions
      to the effect and to the extent provided in Sections 14.5 and 14.6 hereof.
      The
      Holders shall be a party to any underwriting agreement relating to an
      underwritten sale of their Shares and may, at their option, require that any
      or
      all of the representations, warranties and covenants of the Company to
      or

    

    
      
        
          
          

        

        
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    for
      the benefit of
      such underwriters, shall also be made to and for the benefit of the Holders.
      All
      representations and warranties of the Holders shall be made to or for the
      benefit of the Company.

    

    (c) The
      Company shall
      provide a transfer agent and registrar (which may be the same entity) for the
      Shares, not later than the effective date of such registration.

    

    (d) All
      expenses in
      connection with the preparation and filing of a registration statement filed
      pursuant to Sections 14.2 or 14.3 shall be borne solely by the Company, except
      for any transfer taxes payable with respect to the disposition of such Shares,
      and any underwriting discounts and selling commissions applicable solely to
      such
      sales of Shares, which shall be paid by the Holders of the Shares being
      registered.

    

    (e) The
      Company shall
      use commercially reasonable efforts to cause all of the shares covered by such
      registration statement to be listed on NASDAQ or such other exchange as the
      Shares may then be listed on, on which similar shares are listed for trading,
      if
      the listing of such registered shares is permitted by such
      exchange.

    

    (f) Following
      the
      effective date of such registration statement, the Company shall, upon the
      request of the Holders, forthwith supply such number of prospectuses (including
      exhibits thereto and preliminary prospectuses and amendments and supplements
      thereto) meeting the requirements of the Securities Act and such other documents
      as are referred to in the prospectus as shall be reasonably requested by the
      Holders to permit the Holders to make a public distribution of their
      Shares.

    

    (g) The
      Company shall
      prepare, if necessary, and file such amendments and supplements to such
      registration statement filed pursuant to Section 14.2 hereof, as may be
      necessary to keep such registration statement effective, subject to applicable
      laws, rules and orders, for a period of five years after the Closing date,
      or
      such shorter period ending when there cease to be outstanding any Shares or
      Notes held by the Holders, and to comply with the provisions of the Securities
      Act with respect to the offer and sale or other disposition of the shares
      covered by such registration statement during the period required for
      distribution of the shares. 

    

    (h) The
      Holders may
      select the underwriter or under-writers (which shall be of nationally recognized
      standing), if any, who are to undertake any offering and distribution of the
      Shares to be included in a registration statement filed under the provisions
      of
      Subsection 14.2 or 14.3(b) hereof, subject to the Company's prior approval
      of
      the underwriter, which approval shall not be unreasonably withheld.

    

    (i) The
      Company shall
      use commercially reasonable efforts to register the Shares covered by any such
      registration statements filed pursuant to Section 14.2 or 14.3(b) under such
      securities or Blue Sky laws in addition to those in which the Company would
      otherwise sell shares, as the Holders reasonably request, except that neither
      the Company nor the Holders shall for any such purpose be required to execute
      a
      general consent to service of process or to qualify to do business as a foreign
      corporation in any jurisdiction where it is not so qualified. The fees and
      expenses incurred in connection with such registration shall be borne by the
      Company.

    

    (j) The
      Holders shall
      cooperate fully with the Company and provide the Company with all information
      reasonably requested by the Company for inclusion in the registration statement
      or as necessary to comply with the Securities Act. The Company shall cooperate
      fully with any underwriters selected by the Holders and counsel to such
      underwriters, and shall provide

    

    
      
        
          
          

        

        
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    reasonable
      and
      customary access to the Company's books and records (upon receipt from such
      underwriters of customary confidentiality agreements) in order to facilitate
      such underwriters' review and examination of the Company in connection with
      such
      underwriting.

    

    (k) The
      Company shall
      notify the Holders, at any time after effectiveness when a prospectus relating
      thereto is required to be delivered under the Securities Act within the period
      mentioned in subdivision (vii) of this Section 14.4, 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 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 light of circumstances then
      existing (and upon receipt of such notice and until a supplemented or amended
      prospectus as set forth below is available, the Holders shall not offer or
      sell
      any securities covered by such registration statement and shall return all
      copies of such prospectus to the Company if requested to do so by it), and
      at
      the request of the Holders prepare and furnish the Holders promptly a reasonable
      number of copies of a supplement to or an amendment of such prospectus as may
      be
      necessary so that, as thereafter delivered to the purchasers of such shares,
      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 light of the circumstances then
      existing.

    

    (l) The
      Company shall
      furnish to the Holders at the time of the disposition of the Shares, a signed
      copy of an opinion of the Company's regular in-house or outside general counsel,
      or other counsel of the Company's selection reasonably acceptable to, and which
      opinion shall be reasonably satisfactory in form and substance to, the Holders
      to the effect that: (a) a registration statement covering such Shares has been
      filed with the Commission under the Securities Act and has been made effective
      by order of the Commission, (b) said registration statement and prospectus
      contained therein comply as to form in all material respects with the
      requirements of the Securities Act, and nothing has come to such counsel's
      attention (after due inquiry) which would cause such counsel to believe that
      either said registration statement or such prospectus contains any untrue
      statement of a material fact or omits to state a material fact required to
      be
      stated therein or necessary to make the statements therein (in the case of
      such
      prospectus, in light of the circumstances under which they were made) not
      misleading, (c) after due inquiry such counsel knows of no legal or governmental
      proceedings required to be described in such registration statement or
      prospectus which are not described as required, or of any contracts or documents
      of a character required to be described in such registration statement or such
      prospectus to be filed as an exhibit to such registration statement or to be
      incorporated by reference therein which are not described and filed as required
      and (d) to such counsel's knowledge, no stop order has been issued by the
      Commission suspending the effectiveness of such registration statement; it
      being
      understood that such opinion may contain such qualifications and assumptions
      as
      are customary in the rendering of similar opinions, and that such counsel may
      rely, as to all factual matters treated therein, on certificates of the Company
      (copies of which shall be delivered to the Holders).

    

    (m) The
      Company will
      use its commercially reasonable efforts to comply with the reporting
      requirements of Sections 13 and 15(d) of the Exchange Act, to the extent it
      shall be required to do so pursuant to such sections, and at all times while
      so
      required shall use its commercially reasonable efforts to comply with all other
      public information reporting requirements of the Commission (including reporting
      requirements which serve as a condition to utilization of Rule 144 promulgated
      by the Commission under the Securities Act) from time to time in effect and
      relating to the availability of an exemption from the Securities Act for the
      sale of any of the Company's Common Stock held by the Holders. The Company
      will
      also cooperate with the Holders in supplying such information and documentation
      as may be necessary for the Holders to complete

    

    
      
        
          
          

        

        
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    and
      file any
      information reporting forms presently or hereafter required by the Commission
      as
      a condition to the availability of an exemption from the Securities Act for
      the
      sale of any Company Common Stock held by the Holders.

    

    14.5 Indemnification.

    

    (i) In
      the event of the
      registration of any shares of the Company under the Securities Act pursuant
      to
      the provisions of Sections 14.2 or 14.3, the Company agrees to indemnify and
      hold harmless the Holders, each underwriter, broker or dealer, if any, and
      their
      directors, officers and employees, of such Shares, and each other person, if
      any, who controls the holders
      of the
Notes
      or the Shares (or a permitted assignee thereof), such underwriter, broker or
      dealer within the meaning of the Securities Act, from and against any and all
      losses, claims, damages or liabilities (or actions in respect thereof), joint
      or
      several,
      to which the
      Holders (and as applicable) its directors, officers or employees, or such
      underwriter, broker or dealer or controlling person may become subject under
      the
      Securities Act or otherwise, insofar as such losses, claims, damages or
      liabilities (or actions 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 shares were registered under the
      Securities Act, any preliminary prospectus or final prospectus relating to
      such
      Shares, or any amendment or supplement thereto, or arise out of or are based
      upon the 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 any violation by the Company of any rule or regulation under the Securities
      Act applicable to the Company or relating to any action or inaction required
      by
      the Company in connection with any such registration and will reimburse the
      Holders, each such underwriter, broker or dealer and controlling person, and
      their directors, officers or employees, for any legal or other expenses
      reasonably incurred by the Holders or such underwriter, broker or dealer or
      controlling person in connection with investigating or defending any such loss,
      claim, damage, liability or action; provided,
however,
      that the Company
      will not be liable in any such case to the extent that any such loss, claim,
      damage or liability arises out of or is based upon an untrue statement or
      alleged untrue statement
      or omission or
      alleged omission made in such registration statement, such preliminary
      prospectus, such final prospectus or such amendment or supplement thereto in
      reliance upon and in conformity with written information furnished to the
      Company by the Holders and as applicable, such Holders' directors, officers
      or
      employees, or such underwriter, broker, dealer or controlling person for use
      in
      the preparation thereof. Such indemnity shall remain in full effect irrespective
      of any investigation by any person indemnified above.

    

    (ii) In
      the event of the
      registration of any Shares of the Holders under the Securities Act for sale
      pursuant to the provisions of this Agreement, the Holders agree to indemnify
      and
      hold harmless the Company, its directors, officers and employees, from and
      against any losses, claims, damages or liabilities, joint or several, to which
      the Company, its directors, officers or employees, may become subject under
      the
      Securities Act or other-wise, insofar as such losses, claims, damages or
      liabilities (or actions 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 Shares were registered under the
      Securities Act, any preliminary pros-pectus or final prospectus relating to
      such
      Shares, or any amend-ment or supplement thereto, or arise out of or are based
      upon omission or alleged omission to state therein a material fact required
      to
      be stated therein or necessary to make the statements therein not misleading,
      which untrue statement or alleged untrue statement or omission or alleged
      omission was made therein in reliance upon and in conformity with written
      information furnished to the Company by the Holders for use in the preparation
      thereof. Such indemnity shall remain in full effect irrespective of any
      investigation by any person indemnified above.

    

    
      
        
          
          

        

        
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    (iii) Promptly
      after
      receipt by a person entitled to indemnification under this Section
14.5
      (for purposes
      of this Section 14.5, an "Indemnified Party") of notice of the commencement
      of
      any action or claim relating to any registration statement filed under Sections
      14.2 or 14.3 or as to which indemnity may be sought hereunder, such Indemnified
      Party will, if a claim for indemnification hereunder in respect thereof is
      to be
      made against any other party hereto (for purposes of this Section 14.5, an
      "Indemnifying Party"), give written notice to such Indemnifying Party of the
      commencement of such
      action or claim,
      but the failure to so notify the Indemnifying Party will not relieve it from
      any
      liability which it may have to any Indemnified Party otherwise than pursuant
      to
      the provisions of this Section 14.5
      and shall also
      not relieve the Indemnifying Party of its obligations under this Section 14.5,
      except to the extent that the Indemnified Party is damaged solely as a result
      of
      the failure to give timely notice. In case any such action is brought against
      an
      Indemnified Party, and it notifies an Indemnifying
      Party
      of the commencement thereof, the Indemnifying Party will be entitled (at its
      own
      expense) to participate in and, to the extent that it may wish, jointly with
      any
      other Indemnifying Party similarly notified, to assume the defense with counsel
      satisfactory to such Indemnified Party, of such action and/or to settle such
      action and, after notice from the Indemnifying Party to such Indemnified Party
      of its election so to assume the defense thereof, the Indemnifying Party will
      not be liable to such Indemnified Party for any legal or other expenses
      subsequently incurred by such Indemnified Party in connection with the defense
      thereof, other than the reasonable cost of investigation; provided,
however,
      that no
      Indemnifying Party and no Indemnified Party shall enter into any settlement
      agreement which would impose any liability on such other party or parties
      without the prior written consent of such other party or parties.

    

    14.6 Contribution.
      (a) If the
      indemnification provided for in Section 14.5 hereof is unavailable to the
      Indemnified Party in respect of any losses, claims, damages or liabilities
      referred to herein, then each such Indemnifying Party, in lieu of indemnifying
      such Indemnified Party, shall
      contribute to
      the amount paid or payable by such Indemnified Party as a result of such losses,
      claims, damages or liabilities (i) as between the Company and the Holders on
      the
      one hand and the underwriters on the other, in such proportion as is appropriate
      to reflect the relative benefits received by the Company and the Holders on
      the
      one hand and the underwriters on the other from the offering of the Shares,
      or
      if such allocation is not permitted by applicable law, in such proportion as
      is
      appropriate to reflect not only such relative benefits but also the relative
      fault of the Company and the Holders on the one hand and of the underwriters
      on
      the other in connection with the statements or omissions which resulted in
      such
      losses, claims, damages or liabilities, as well as any other relevant equitable
      considerations and (ii) as between the Company on the one hand and each Holder
      on the other, in such proportion as is appropriate to reflect the relative
      fault
      of the Company and of each Holder in connection with such statements or
      omissions, as well as any other relevant equitable considerations.

    

    (b) In
      no event shall
      the obligation of any Indemnifying Party to contribute under this Section 14.6
      exceed the amount that such Indemnifying Party would have been obligated to
      pay
      by way of indemnification if the indemnification provided for under Section
      14.5
      hereof had been available under the circumstances.

    

    (c) The
      amount paid or
      payable by an Indemnified Party as a result of the losses, claims, damages
      and
      liabilities referred to in the next preceding paragraph shall be deemed to
      include, subject to the limitations set forth above, any legal or other expenses
      incurred by such Indemnified Party in connection with investigating or defending
      any such action or claim. Notwithstanding the provisions of this Section 14.6,
      no Holder or underwriter shall be required to contribute any amount in excess
      of
      the amount by which (i) in the case of a Holder, the net proceeds received
      by
      such Holder from the sale of Shares or (ii) in the case of an underwriter,
      the
      total price at

    

    
      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

    

    

    which
      the Shares
      purchased by it and distributed to the public were offered to the public
      exceeds, in any such case, the amount of any damages that such Holder or
      underwriter has otherwise been required to pay by reason of such untrue or
      alleged untrue statement or omission or alleged omission. 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.

    

    14.7 Survival.
      The indemnity and
      contribution agreements contained in this Article XIV shall remain
      operative and in full force and effect regardless of (i) any termination of
      this
      Agreement or any underwriting agreement, (ii) any investigation made
      by or on
      behalf of any Indemnified Party or by or on behalf of the Company and (iii)
      the
      consummation of the sale or successive resales of the Shares.

    

    XV. REPLACEMENT
      OF
      NOTES.
      Upon receipt of evidence satisfactory to the Company of the loss, theft,
      destruction or mutilation of any Note and, in the case of any such loss, theft,
      or destruction, upon delivery of a bond of indemnity satisfactory to the Company
      (provided that,
      in the case of
      any Purchaser, the written undertaking of such Purchaser to indemnify the
      Company shall be satisfactory to the Company) or in the case of any such
      mutilation, upon surrender and cancellation of such Note, the Company will
      issue
      a new Note of like tenor as if the lost, stolen, destroyed or mutilated Note
      were then surrendered for exchange in lieu of such lost, stolen, destroyed
      or
      mutilated Note.

    

    XVI. AMENDMENT
      AND
      WAIVER.
      Except as set
      forth in Article V, this Agreement may be amended (or any provision thereof
      waived) with the consent
      of the
      Company and the Holders of a
      majority in
      aggregate principal amount of the Notes then outstanding; provided,
however,
      that no such
      amendment or waiver shall (i) change the fixed maturity of any Note, the rate
      or
      the time of payment of interest thereon, the principal amount thereof or the
      circumstances under which such Note may be called, converted or redeemed without
      the consent of the holders of all the Notes then outstanding, (ii) reduce the
      aforesaid percentage of Notes, the holders of which are required to consent
      to
      any such amendment or waiver, without the consent of the holders of all the
      Notes then outstanding or (iii) increase the percentage of the aggregate
      principal amount of the Notes that the holders of which may declare the Notes
      to
      be due and payable under Article XI herein, without the consent of the holders
      of all of the Notes then outstanding or (iv) modify the conversion rights or
      the
      Conversion Price and adjustments thereto (as outlined in Articles XII and XIII
      herein) in any material respect, without the consent of the holders of all
      of
      the Notes then outstanding or (v) alter the registration rights under Article
      XIV herein in any material respect, without the consent of the holders of all
      of
      the Notes then outstanding and all of the Shares outstanding other than Shares
      which have been sold in registered public offerings; and provided,
further,
      that no amendment
      or waiver of any provision of Article V shall be effective against any holder
      of
      Senior Indebtedness who has not consented
      thereto. The
      Company and each holder of a Note
      then or
      thereafter outstanding shall be bound by any amendment or waiver effected in
      accordance with the provisions of this Article, whether or not such Note shall
      have been marked to indicate such modification, but any Note issued thereafter
      shall bear a notation as to any such modification. Promptly after obtaining
      the
      written consent of the holders herein provided, the Company shall transmit
      a
      copy of such modification to all of the holders of the Notes then
      outstanding.

    

    XVII. HOME
      OFFICE
      PAYMENT.
      The Company will
      make payments of principal and interest by check payable to the order of the
      holder of any such Notes duly mailed or delivered to such holder at the address
      of such holder specified in Exhibit
      A,
      or at such other
      address as such holder may designate in writing, or , if requested by any holder
      of the Notes, by wire transfer to its (or its nominee's) account at any bank
      or
      trust company in the United States of America,

    

    
      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

    

    

    notwithstanding
      any
      contrary provisions herein or in any Note
      with respect
      to the place of payment. All such payments shall be made in immediately
      available funds. The Purchasers agree that, before any such Note is assigned
      or
      transferred, the Purchasers will make or cause to be made a notation thereon
      of
      principal payments previously made thereon and of the date to which interest
      thereon has been paid and will notify the Company of the name and address of
      the
transferee
      of such
Note
      if such name and address are known to such Purchaser.

    

    XVIII. NOTICES.
      All notices,
      requests, consents and other communications hereunder shall be in writing and
      shall be deemed to have been made when delivered by courier or mailed express
      mail or transmitted by facsimile,
      e-mail
      or other means of electronic transmission:

    

    (a) if
      to a Purchaser
      or its nominee, at such Purchaser's address as set forth in Exhibit
      A
      hereto, or at such
      other address as may have been furnished to the Company by a Purchaser in
      writing; or

    

    (b) if
      to any other
      holder of a Note, at such address as the payee thereof shall have designated
      to
      the Company by a written notice stating that such holder has acquired such
      Note
      and designating such an address, or at such other address as may have been
      furnished to the Company by such holder in writing; or

    

    (c) if
      to the Company,
      at 450 Commack Road, Deer Park, New York 11729 (fax number (631) 254-2320);
      Attention: W. Gray Hudkins, President and Chief Executive Officer, or at such
      other address as may have been furnished to the Purchasers or other holders
      of
      Notes in writing by the Company, with a copy to Robert L. Lawrence, Esq., Kane
      Kessler, P.C., 1350 Avenue of the Americas, New York, New York 10019 (fax number
      (212) 245-3009).

    

    XIX. ENTIRE
      AGREEMENT.
      This Agreement
      and the Notes embody the entire agreement and understanding between the
      Purchasers and the Company and supersede all prior agreements and understandings
      relating to the subject matter hereof.

    

    XX. SUCCESSORS
      AND
      ASSIGNS.
      All covenants and
      agreements in this Agreement contained by or on behalf of any of the parties
      hereto shall bind and inure to the benefit of the respective successors and
      assigns of the parties hereto whether so expressed or not.

    

    XXI. HEADINGS.
      The headings of
      the articles and sections of this Agreement have been inserted for convenience
      of reference only and shall in no way restrict or otherwise modify any of the
      terms or provisions hereof.

    

    XXII. GOVERNING
      LAW.
      This Agreement shall be construed and enforced in accordance with and governed
      by the laws of the State of New York, without giving effect to its conflict
      of
      laws rules.

    

    XXIII. COUNTERPARTS.
      This Agreement
      may be signed in any number of counterparts with the same effect as if the
      signatures thereto and hereto were upon the same instrument. Facsimile
      signatures shall be deemed acceptable and binding.

    

    XXIV. SEVERABILITY.
      Any provision
      hereof or of the Notes which is prohibited or unenforceable in any jurisdiction
      shall, as to such jurisdiction, be ineffective to the extent of such prohibition
      or unenforceability without invalidating the remaining provisions hereof or
      thereof, and

    

    
      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

    

    

    any
      such
      prohibition
      or
      unenforceability in any jurisdiction shall not invalidate or render
      unenforceable such provision in any other jurisdiction.

    

    XXV. DEFINITIONS.
      The following
      terms, when used in this Agreement, shall have the following
      meanings:

    

    "Affiliate"
      shall
      mean any person that controls, is controlled by or is under common control
      with
      the person in question. For purposes hereof, "control" and the correlative
      definitions "controlled by" and "under common control with" shall mean the
      power
      and ability to direct the management and affairs of the person in question,
      whether through the ownership of voting securities, by contract or
      otherwise.

    

    "Agreement"
      has the
      meaning set forth in Article I.

    

    "Board"
      or "Board
      of Directors" means, with respect to any person which is a corporation, a joint
      stock company or a business trust, the board of directors or other group,
      however designated, which is charged with legal responsibility for the
      management of such person, or any committee of such board of directors or group,
      however designated, which is authorized to exercise the power of such board
      or
      group in respect of the matter in question. 

    

    "Business
      Day"
      means any day other than a Saturday, Sunday or other day on which banks in
      the
      State of New York are legally authorized to close.

    

    "Capital
      Lease"
      shall mean a lease of property which is capitalized on the financial statements
      of the lessee in accordance with generally accepted accounting
      principles.

    

    “Change
      in Control"
      of the Company shall be deemed to have occurred in the event that: (i)
      individuals who, as of the date hereof, constitute the Board cease for any
      reason to constitute at least a majority of the Board; provided, however, that
      any individual becoming a director subsequent to the date hereof whose election,
      or nomination for election by the Company’s shareholders, was approved by a vote
      of at least a majority of the directors then comprising the Board shall be
      considered as though such individual was a member of the Board as of the date
      hereof; (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; or (iii) any party,
      other than the Company, is or becomes the “beneficial owner” (as defined in Rule
      13d-3 under the Securities Exchange Act of 1934, as amended), directly or
      indirectly, of voting securities of the Company representing more than 50%
      of
      the total voting power of all the then-outstanding voting securities of the
      Company.

    

    "Closing"
      has the
      meaning set forth in Article III.

    

    "Closing
      Date" has
      the meaning set forth in Article III. 

    

    "Closing
      Price"
      means (i) the last reported sale price as reported on the NASDAQ Small Cap
      market or other exchange on which the Common Stock is listed for trading (or,
      in
      case no such sale takes place on such day, the average of the closing bid and
      asked prices on the NASDAQ Small Cap market or such exchange), or (ii) in the
      absence of any of the foregoing, the fair market value as determined in good
      faith by the Board of Directors of the Company (which determination shall be
      conclusive).

    

    
      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

    

    

    "Commission"
      means
      the Securities and Exchange Commission and any other similar or successor agency
      of the federal government administering the Securities Act or the Exchange
      Act.

    

    "Company"
      means
      Langer, Inc., a Delaware, and its successors and assigns.

    

    "Consolidated"
      or
      "consolidated", when used with reference to any financial term in this
      Agreement, means the aggregate for the Company and its Subsidiaries of the
      amounts signified by such term, with intercompany items eliminated and, with
      respect to earnings, after eliminating the portion of earnings properly
      attributable to minority interests, if any, in the capital of any such person,
      other than the parent of such group.

    

    "Conversion
      Date"
      has the meaning set forth in Section 12.2.

    

    "Conversion
      Price"
      means $4.75 per share, as the same may be adjusted from time to time in
      accordance with the terms of this Agreement.

    

    "Notes"
      has the
      meaning set forth in Article I.

    

    "Event
      of Default"
      has the meaning set forth in Article XI.

    

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

    

    "generally
      accepted
      accounting principles" means, unless otherwise stated, generally accepted
      accounting principles in effect from time to time.

    

    "Holders"
      has the
      meaning set forth in Section 14.2.

    

    "Holder's
      Election"
      has the meaning set forth in Section 13.1.

    

    "Indebtedness"
      of
      any person means and includes, without duplication, as of any date as of which
      the amount thereof is to be determined, (i) all obligations of such person
      to
      repay money borrowed (including, without limitation, all debentures payable
      and
      drafts accepted representing extensions of credit, all obligations evidenced
      by
      bonds, debentures or other similar instruments and all obligations upon which
      interest charges are customarily paid), (ii) the value of all Capital Leases
      (as
      such term is defined in accordance with generally accepted accounting principles
      in effect on the date of this Agreement) in respect of which such person is
      liable as lessee or as the guarantor of the lessee, (iii) the principal amount
      of all monetary obligations which are secured by any lien or security interest
      existing on property owned by such person whether or not the obligations secured
      thereby shall have been assumed by such person, (iv) all guaranties of the
      Indebtedness of any other person and (v) all amounts from time to time owing
      to
      trade creditors arising in the ordinary course of such person's
      business.

    

    "NASDAQ"
      means the
      National Association of Securities Dealers Automated Quotation
      System.

    

    "Notes"
      has the
      meaning set forth in Article I.

    

    "Private
      Placement
      Memorandum" means that certain private placement memorandum dated as of December
      5, 2006, which is being distributed to selected investors (including the
      purchasers under this Note Purchase Agreement) which sets forth certain
      information

    

    
      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

    

    

    about
      the Twincraft
      Acquisition and the offering of the Notes; any reference to the Private
      Placement Memorandum includes the attachments thereto.

    

    "Purchaser"
      has the
      meaning set forth in Article I.

    

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

    

    "Senior
      Indebtedness" has the meaning set forth in Section 5.7.

    

    "Senior
      Secured
      Credit Facility" means the secured credit facility provided or to be provided
      to
      the Company by a senior lender.

    

    "Share"
      or "Shares"
      has the meaning set forth in Article I.

    

    "Solvent"
      shall
      mean when used with respect to any person that as of the date as to which the
      person's solvency is to be measured:

    

    
      	 	
              (i)

            	
              the
                fair
                saleable value of its assets is in excess of the total amount of
                its
                liabilities (including contingent liabilities as valued in accordance
                with
                applicable law) as they become absolute and
                matured;

            

    

    

    
      	 	
              (ii)

            	
              it
                has
                sufficient capital to conduct its business;
                and

            

    

    

    
      	 	
              (iii)

            	
              it
                is able to
                meet its debts as they mature.

            

    

    

    "Subsidiary"
      means
      any corporation organized under the laws of the United States or of any state
      or
      of the District of Columbia or any foreign jurisdiction of which (other than
      directors' qualifying shares required by law) at least a majority of the shares
      of each class of the capital stock entitled to vote at the time as of which
      any
      determination is being made, is owned, beneficially and of record, by the
      Company or one or more of its Subsidiaries, or both.

    

    "Twincraft
      Acquisition" means the acquisition of the outstanding capital stock (the
      "Twincraft Stock") of Twincraft, Inc., a Vermont corporation ("Twincraft"),
      by
      the Company, pursuant to that certain stock purchase agreement between the
      Company and the holders of the Twincraft Stock dated as of November 14,
      2006.

    

    [Signature
      page follows:]

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

    If
      the foregoing
      correctly sets forth our understanding, please (i) sign below on the
      enclosed counterpart of this Convertible Subordinated Note Purchase Agreement,
      (ii) fill in your name and address, including your facsimile and e-mail
      address, on Exhibit
      A,
      and
      (iii) and return the same to the Company along with your payment for the
      amount of the Convertible Note you have agreed to purchase.

    

    
      	
            	
              Very
                truly
                yours,

               

              LANGER,
                INC.

               

               

              By:
                _________________________________

              W.
                Gray
                Hudkins, 

              President
                and
                Chief Executive Officer

            
	
              The
                foregoing
                Agreement is hereby accepted and agreed to as of the date first above
                written:

               

              Print
                Name of Purchaser:

               

              ____________________________________

               

               

              Jurisdiction
                of Formation (if not a natural person:

               

              ____________________________________

               

               

              Authorized
                Signature:

               

              ____________________________________

               

               

              Print
                Name and Title of Authorized Signatory:

               

              ____________________________________

            	
            
	 	 

    

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    
      LANGER,
        INC.

      450
        Commack
        Road

      Deer
        Park, New York
        11729

      

      

      

      

      as
        of December 7,
        2006

       

       

      To
        the Purchasers
        set forth on Exhibit A

      to
        the Convertible
        Subordinated Note Purchase Agreement

       

      Dear
        Sirs/Madams:

       

      Reference
        is hereby made to that certain
        Convertible Subordinated Note Purchase Agreement, dated as of December 7,
        2006,
        between the Company and the Purchaser parties thereto (the “Note Purchase
        Agreement”). This letter shall serve to amend the provisions of Section 14.5(ii)
        as follows: notwithstanding any provision of Section 14.5(ii) of the Note
        Purchase Agreement to the contrary, the Company agrees that the liability
        of the
        Holders pursuant to Section 14.5(ii) shall be several and not joint, and
        that
        any liability of a Holder pursuant to Section 14.5(ii) shall be limited to
        the
        amount of the net proceeds received by such Holder upon sale of the Shares
        of
        such Holder.

       

      In
        addition, the reference to “(vii)” contained
        in Section 14.4(k) of the Note Purchase Agreement shall be revised to be
        a
        reference to “(g)”.

       

      Except
        as hereby amended, the provisions of the
        Note Purchase Agreement are hereby ratified, approved and confirmed in all
        respects.

       

       

      Very
        truly
        yours,

       

      LANGER,
        INC.

       

      By:____________________________________

      W.
        Gray
        Hudkins

      President
        and Chief
        Executive OfficerEXHIBIT
        B

      

      THIS
        CONVERTIBLE SUBORDINATED NOTE AND THE SHARES OF COMMON STOCK ISSU-ABLE UPON
        CONVERSION HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
        AMENDED, AND ARE NOT TRANSFERABLE EXCEPT UPON THE CONDITIONS SPE-CIFIED IN
        THE
        PURCHASE AGREEMENT REFERRED TO HEREIN.

      

      LANGER,
        INC.

      

      5%
        Convertible Subordinated Note Due December 7, 2011

      

      Dated:
        December 7,
        2006

      Deer
        Park, New
        York

      Principal
        Sum:
        $_________________________________

      Name
        of Holder (the
        "Holder:): ______________________

      Address
        of Holder:
        _______________________________

      ______________________________________________

      Holder's
        Facsimile:
        _______________________________

      Holder's
        E-mail
        Address:___________________________

      Maturity
        Date:
        December 7, 2011

      

      For
        Value
        Received,
        the undersigned,
Langer,
        Inc.
        (the "Company"), a
        Delaware corporation, hereby promises to pay to the above named Holder, or
        registered assigns, the Principal Sum set forth above, on the Maturity Date
        set
        forth above, with interest (computed on the basis of a 360-day year of twelve
        30-day months) on the unpaid balance of such principal sum from the date
        hereof
        at the interest rate of 5% per annum, payable semi-annually on the last day
        of
        June and December in each year, commencing on June 30, 2007 (which first
        interest payment shall be for the period from the date hereof through June
        30,
        2007, until the principal hereof shall have become due and payable, whether
        at
        maturity or by acceleration or otherwise.

      

      Payments
        of
        principal and interest shall be made in lawful money of the United States
        of
        America at the principal office of the Company in Deer Park, New York, or
        at
        such other place as the Company shall have designated for such purpose to
        the
        Holder in writing and may be paid by check mailed, or wire transfer as provided
        in the Purchase Agreement referred to below, to the registered address
        designated by the Holder for such purpose.

      

      This
        Note is one of
        a duly authorized issue of Notes, aggregating $________ in principal amount
        issued pursuant to a certain Convertible Subordinated Note Purchase Agreement
        (hereinafter called the "Purchase Agreement") dated as of December 7, 2006,
        between the Company and the Purchasers named in the Purchase Agreement.
        Capitalized terms not otherwise defined herein shall have their respective
        meanings as set forth in the Purchase Agreement.

      

      This
        Note is
        subject to the provisions of and is entitled to the benefits of the Purchase
        Agreement. In addition, the payment of the principal and interest on this
        Note
        is subordinated in right of payment to the prior payment in full of certain
        other obligations of the Company to the extent and in the manner set forth
        in
        the Purchase Agreement. Each Holder of this Note, by accepting the same,
        agrees
        to and shall be bound by the provisions of the Purchase Agreement.

      

      This
        Note is
        transferable only upon the conditions specified in the Purchase Agreement.
        Notwithstanding the foregoing, however, this Note is registered with the
        Company
        as to both principal and interest, and transfer of this Note can be effected
        only by surrender of this Note and

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      either
        reissuance
        by the Company of this Note or by issuance by the Company of a new Note.
        The
        Company shall maintain a register for the registration and transfer of this
        Note
        (the "Schedule"), containing the name and address of any holder(s) of this
        Note.
        All transfers of this Note and/or transferees of this Note shall be registered
        in the Schedule. This Note may be assigned only upon the surrender thereof
        at
        the address of the Company set forth in the Purchase Agreement. Thereupon,
        the
        Company shall execute in the name of the assignee either a reissued Note
        or a
        new Note, shall register such transfer in the Schedule and shall deliver
        either
        a reissued Note or a new Note to the holder. Upon surrender or presentation
        of
        this Note to the Company for transfer, this Note shall be duly endorsed and
        shall specify the name and address of the transferee.

      

      This
        Note is
        convertible into Common Stock of the Company (as set forth in Articles XII
        and
        XIII of the Purchase Agreement) in the manner, and upon the terms and
        conditions, including without limitation, the anti-dilution provisions, provided
        in the Purchase Agreement.

      

      In
        case an Event of
        Default shall occur and be continuing, the principal of this Note may be
        declared due and payable in the manner and with the effect provided in the
        Purchase Agreement.

      

      No
        reference herein
        to the Purchase Agreement, and no provision hereof or thereof, shall alter
        or
        impair the obligation of the Company, which is absolute and unconditional,
        to
        pay the principal hereof and interest hereon at the respective times and
        places
        set forth herein and in the Purchase Agreement.

      

      This
        Note is
        delivered in and shall be construed and enforced in accordance with and governed
        by the laws of the State of New York, without giving effect to its conflict
        of
        laws rules.

      

      Subject
        to the
        provisions of Article XX the Purchase Agreement, the Company may treat the
        person in whose name this Note is registered as the owner and holder of this
        Note for the purpose of receiving payment of principal and interest on this
        Note
        and for all other purposes whatsoever, and the Company shall not be affected
        by
        any notice to the contrary.

      

      [Signature
        Page Follows:]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      In
        Witness
        Whereof,
        Langer, Inc. has
        caused this Note to be dated, and to be executed on its behalf by its officer
        thereunto duly authorized.

      

      Langer,
        Inc.

       

      By:__________________________________

      W.
        Gray
        Hudkins

      President
        and Chief
        Executive Officer

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      REGISTER
        FOR TRANSFERS

      

      

      Holder       Name
        and
        Address

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]