Document:

Exhibit 10.64

    
      

    

    
      EXHIBIT
        10. 64

      

      

      

      ADMINISTRATIVE
        SERVICES AGREEMENT

       

      between

      

      FIC
        INSURANCE SERVICES, L.P.

      

      Austin,
        Texas

      

      and

      

      FAMILY
        LIFE INSURANCE COMPANY

      

      Houston,
        Texas

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ADMINISTRATIVE
        SERVICES AGREEMENT

       

        
          

          

        

      

      THIS
        ADMINISTRATIVE SERVICES AGREEMENT
        (“Services
        Agreement”)
        is made as of the date set forth below by and between FIC
        INSURANCE SERVICES, L.P. (“Company”),
        a Texas limited partnership, and FAMILY
        LIFE INSURANCE COMPANY
        (“Insurer”), a Texas stock life insurance corporation.

      
 

      Recitals

       

      WHEREAS,
        Family
        Life Corporation, an affiliate of Company, has agreed to sell Insurer to
        The
        Manhattan Life Insurance Company (“MLIC”);

       

      WHEREAS,
        Company
        now provides administrative and management services to Insurer pursuant to
        various agreements that will be terminated as of the Closing Date of the
        sale of
        Insurer to MLIC;

       

      WHEREAS,
        Insurer
        intends to assume the administration of its business as soon as possible
        but
        requires continuing administrative services until administration can be assumed
        by Insurer; and

       

      WHEREAS,
        Company
        agrees to provide such administrative services to Insurer from the Closing
        Date
        until administration is assumed by Insurer;

       

      NOW,
        THEREFORE,
        in
        consideration of the mutual covenants and promises contained herein, and
        intending to be legally bound hereby, the parties hereto agree as
        follows:

      

      ARTICLE I

      Definitions

       

      The
        capitalized terms used herein shall have the meaning given below.

       

      1.1   Administrative
        Services.
        Services that
        Company
        is to provide in respect of the Policies during the Service Period, as more
        fully described at Article II of this Services
        Agreement.

       

      1.2   Closing
        Date.
        The
        date of the closing of the sale of Insurer to MLIC pursuant to the Stock
        Purchase Agreement dated December 8, 2006.

       

      1.3   Policies.
        All
        policies, riders, endorsements, and other evidences of coverage issued by
        Insurer and in force as of the Closing Date, including life, health, and
        accident policies and annuity contracts.

       

      1.4   Producer.
        Any
        agent, broker, representative, or subagent of any person having a Producer
        Agreement.

      
        
          Administrative
            Services Agreement

          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

      

      1.5   Producer
        Agreement.
        Any
        written agreement, contract, understanding, or arrangement between Company
        and
        any Producer, including any assignments of compensation thereunder, and relating
        to the solicitation, sale, marketing, production or servicing of any of the
        Policies.

       

      1.6   Producer
        Payments.
        Any
        expense allowance, commission, override commission, service fee, bonus, profit
        share or other compensation payable by Company to a Producer pursuant to
        a
        Producer Agreement.

       

      1.7   Service
        Period.
        The
        period
        commencing on the Closing Date and continuing until terminated pursuant to
        Article III.

      

      ARTICLE II

      Administrative
        Services in the Service Period

       

      2.1   Commitment
        to Provide.
        During
        the Service Period, Company will continue to administer the Policies, including,
        without limitation, the provision of the Administrative Services described
        in
        this Article II.

       

      2.2   Description
        of the Administrative Services.
        The
        Administrative Services shall consist of the following; provided, however,
        that,
        except to the extent described below, Company shall provide Administrative
        Services in a manner consistent with the standards and practices that it
        utilized in servicing the Policies immediately prior to the Closing
        Date:

      
        

          2.2.1   Billing
            and collection of premiums due under the Policies and the return of unearned
            premiums.

           

          2.2.2   Preparation
            of such reports for Insurer as may reasonably be required to calculate
            premium
            taxes due under the Policies. Such reports shall be prepared within 30
            days of
            the end of a calendar quarter.

           

          2.2.3   Maintenance
            of applications, policyholder, premium, and other necessary records,
            including
            all computer records, to enable Insurer to determine, at any time, the
            true and
            accurate status of the insurance in force under the Policies.

           

          2.2.4   Making
            available of all records relating to the Policies for audit by Insurer
            upon the
            notice. Such records shall include, but not be limited to, policyholder
            records,
            in-force listings, premium records, claim forms, itemized billings, and
            eligibility documentation.

           

          2.2.5   Giving
            of
            required notices to Policyholders of any cancellation, non-renewal, or
            lapse in
            coverage under the Policies.

           

          2.2.6   Giving
            of
            immediate notice to Insurer of any consumer complaint which threatens
            legal
            action and the forwarding to Insurer of all written consumer complaints
            within
            (48)
            hours,
            if possible, but in no instance longer than four (4) business days after
            receipt
            thereof, as well as all pertinent files and correspondence relating
            thereto.

          
            
              Administrative
                Services Agreement

              
              

            

            
              -2-

              
                

              

            

            
              
              

            

          

           

          2.2.7   Timely
            delivery of all records and data necessary to transition the administration
            of
            the Policies to Insurer in a manner, form and format reasonably acceptable
            to
            Insurer provided, however, that Insurer is responsible for providing
            the format
            for all records and data transfer which format shall be reasonably acceptable
            to
            Company.

           

          2.2.8   Processing
            of policy loan requests and policy loan repayments received from
            Policyholders.

           

          2.2.9   Processing
            of policy changes requested by Policyholders including, but not limited
            to name
            changes, address changes, beneficiary changes, reinstatements, assignments,
            and
            the like and the preparation and delivery of policy forms, certificates,
            and
            endorsements relating to the Policies.

           

          2.2.10   Processing
            of reports of transactions under the Policies from time to time as reasonably
            requested by Insurer.

           

          2.2.11   Calculation
            of reserves on the Policies on not less than a calendar quarter basis,
            and
            otherwise as may reasonably be required by Insurer from time to time
            in order to
            comply with Insurer’s financial reporting requirements and obligations. Such
            calculations shall be prepared within 30 days of the end of the related
            calendar
            quarter.

           

          2.2.12   Reporting
            of such information with respect to the Policies as Insurer may reasonably
            require from time to time for statutory filing and reporting purposes.
            All
            requests for such information shall be in writing and shall provide Company
            with
            a reasonable time to comply with such requests.

           

          2.2.13   Communication
            with the Policyholders of the Policies.

           

          2.2.14   The
            administration and processing of claims under the Policies, including
            the
            following:

           

          2.2.14.1   Allowable
            claims arising under the terms of the Policies shall be paid promptly
            and
            accurately in accordance with the terms of this Section. Company’s obligation to
            pay claims under this Section shall be subject to Insurer’s deposit from time to
            time as requested by Company, by wire transfer to an account designated
            by
            Company, of immediately available funds in an amount equal to such claims
            of any
            claims then due and owing. Company also shall have the right to fund
            the payment
            of claims allowed under this Section out of the amounts received and
            held for
            the account of Insurer pursuant to Section 2.4 hereof.

           

          2.2.14.2   In
            the
            event of non-payment of a claim on account of incomplete or insufficient
            data,
            receipt of the claim shall be confirmed with, and the reason for nonpayment
            shall be communicated to,
            the
            claimant within thirty (30) business days from date of receipt of the
            claim form
            or the period prescribed by applicable law, whichever is less. Claims
            decisions
            and payments will be made in compliance with the contractual terms, provisions,
            and conditions of the Policies

          
            
              Administrative
                Services Agreement

              
              

            

            
              -3-

              
                

              

            

            
              
              

            

          

          

          2.2.14.3   If
            Company determines that a claim under a Policy requires investigation
            or should
            be denied or if suit is brought with respect to a claim, Insurer shall
            be
            promptly notified. Insurer and Company shall consult regarding the disposition
            of the claim. In the event of disagreement, Insurer shall have final
            authority
            over the disposition of the claim.

           

          2.2.14.4   Conform
            to the reasonable requirements set by Insurer for monthly submission
            of claims
            reports.

           

          2.2.14.5   Perform
            such other claim services as Insurer may reasonably require in connection
            with
            the maintenance of the Policies.

           

          2.2.15   Payment
            of Producer Payments due Producers under Producer Agreements that are
            in force
            with respect to the Policies, for the account of Insurer out of premium
            collected under the Policies, in accordance with Section 2.4 of this
Services
            Agreement.

           

          2.2.16   Such
            other administrative services as Insurer may reasonably require from
            time to
            time in connection with the maintenance, support, and administration
            of the
            Policies.

          

            2.3   Compensation.
              In
              consideration of Company’s performance of the Administrative Services, Insurer
              shall pay Company $1.61 per month for each paid-up policy, $5.21 per
              month for
              each universal life policy, and $4.61 per month for all traditional
              and other
              policies (“Service Fee”) for each month in the Service Period during which
              Administrative Services under this Article II are provided. If the Service
              Period ends on other than a month-end date, the Service Fee payable
              by Insurer
              shall be prorated for the number of days in the last monthly period
              during which
              Administrative Services were provided. In addition, Insurer will pay
              Company
              twenty-five thousand dollars ($25,000) for the preparation of each
              statutory
              financial statement finally prepared for filing during the Service
              Period.
              Company shall render a monthly statement, in arrears, to Insurer covering
              the
              Administrative Services rendered in the period. Payment shall be due
              within ten
              (10) business days of Insurer’s receipt of Company’s statement;
              provided, however, that Company
              has
              the
              right to set
              off
              and transfer such Payment to Company’s account
              from the
              Premium Payments set
              forth
              in Section 2.4
              of this
              Services Agreement.

             

            2.4   Premium
              Payments.
              Company
              will hold all amounts collected under the Policies for the account
              of Insurer in
              a fiduciary capacity. During the Service Period, Company shall regularly
              remit
              to Insurer, on no less than a quarterly basis, the Net Proceeds of
              transactions
              under the Policies. For purposes of this Section, “Net Proceeds” means
              (a) premiums collected, adjusted for reinsurance paid, less
              (b) benefits paid, net of reinsurance settlements, less
              (c) Producer Payments paid, less
              (d) a provision for premium taxes equal to 2.5% of premiums collected,
              plus
              or
minus
              (e) such other adjustments as may be specified in this Services
              Agreement
              or otherwise be agreed to by the parties; provided, that Company shall
              have the
              right to deduct from the remittance of Net Proceeds any Service Fee
              amount then
              due and owing to Company for Administrative Services rendered under
              this
              Article II.

             

            2.5   Books
              and Records.
              During
              the Service Period, Company will maintain true and accurate Books and
              Records
              with respect to the Policies and the Administrative Services provided
              under the
              Article II, including such Books and Records as may be required by
              law.

            
              
                Administrative
                  Services Agreement

                
                

              

              
                -4-

                
                  

                

              

              
                
                

              

            

            

            2.6.   Transfer
              of Servicing.
              Company
              agrees to provide all reasonable assistance to Insurer in the transfer
              to
              Insurer of the administration of the Policies, including without limitation
              responding to questions from Insurer in the conversion of computer
              records and
              files to the systems of Insurer.

             

            2.7   Negotiation
              of Checks and Drafts.
              Company
              shall be authorized to endorse for payment of all checks, drafts, and
              money
              orders payable to Insurer with respect to premiums payable on the Policies.
              Insurer hereby assigns to Company all of its rights and privileges
              to draft or
              debit the accounts of any Policyholders for premiums due under the
              Policies
              pursuant to existing pre-authorized bank draft or electronic fund transfer
              arrangements between Insurer and such Policyholders.

            

            ARTICLE III

            Termination

             

            3.1   Effective
              Date.
              This
              Services Agreement is effective as of the Closing Date, subject to
              the closing
              of the transactions contemplated in the Stock Purchase Agreement.

             

            3.2   Term
              & Termination.
              The
              initial term of this Services Agreement shall commence on the Closing
              Date and
              shall be for a period of three (3) months from the Effective Date.
              Upon the
              expiration of the initial term or any renewal term hereof, this Services
              Agreement shall automatically be renewed for successive additional
              terms of one
              (1) month each, except that the total of such automatic renewal terms
              shall not
              exceed three (3) months in duration. This Services Agreement shall
              terminate
              upon the expiration of the initial term or any subsequent renewal term
              by either
              party furnishing prior written notice to the other of its intention
              to terminate
              not less than thirty (30) days prior to such expiration date. Upon
              the
              furnishing of such notice and expiration of such initial term or any
              subsequent
              renewal term, this Services Agreement shall terminate (the “Expiration
              Date”).

            

            ARTICLE IV

            Indemnification
              and Exculpation

             

            4.1   Indemnification.
              Insurer
              shall indemnify and hold harmless Company, its affiliates and their
              respective
              directors, officers, agents and employees (each, a “Indemnified Person”) from
              and against any claims, damages, losses, obligations, liabilities,
              costs and
              expenses (including, without limitation, reasonable attorneys’ fees)
              (collectively, “Losses”), suffered by Indemnified Person and arising out of or
              in connection with Administrative Services rendered or to be rendered
              by any
              Indemnified Person pursuant to this Services Agreement or the transactions
              contemplated hereby except to the extent that such Losses are the result
              of the
              gross negligence or willful misconduct of such Indemnified Person.

            

            ARTICLE V

            Miscellaneous

             

            5.1   Privacy
              Rights.
              Pursuant to the provisions of the National Association of Insurance
              Commissioners Model Insurance Information and Privacy Protection Act,
              and
              similar laws and regulations as enacted in various states, the parties
              recognize
              that, in the performance of their respective obligations under this
Services
              Agreement,
              they each may obtain from the other personal or privileged information
              about
              individuals collected or received in connection with insurance transactions
              under the Policies. Each of the parties agrees not to disclose such
              information
              to third parties without the individual’s written authorization unless such
              disclosure is otherwise permitted by law.

            
              
                Administrative
                  Services Agreement

                
                

              

              
                -5-

                
                  

                

              

              
                
                

              

            

            

            5.2   Notice
              Generally.
              Any and
              all notices or other communications required or permitted under this
              Services
              Agreement
              shall be in writing and shall be deemed sufficient when (i) mailed by
              United States registered or certified mail, return receipt requested,
              (ii) mailed by overnight express mail, (iii) sent by facsimile or
              telecopy machine, followed by confirmation mailed by first-class mail
              or
              overnight express mail, or (iv) delivered in person or by commercial
              courier at the address set forth below:

            

              
                	 	
                        Insurer:

                      	 	
                        Family
                          Life Insurance Company

                      
	 	 	 	
                        2727
                          Allen Pkwy, Suite 500

                      
	 	 	 	
                        Houston,
                          TX 77019

                      
	 	 	 	
                        Attention:
                          Dan George, President

                      
	 	 	 	
                        Fax:
                          (713) 821-6462

                      
	 	 	 	 
	 	
                        Company:

                      	 	
                        FIC
                          Insurance Services, L.P.

                      
	 	 	 	
                        6500
                          River Place Blvd., Bldg. 1

                      
	 	 	 	
                        Austin,
                          TX 78714

                      
	 	 	 	
                        Attention:
                          Michael Hydanus

                      
	 	 	 	
                        Fax:
                          (512) 404-5129

                      

              

            

             

            5.3   Independent
              Contractors.
              Each
              party hereto shall be deemed an independent contractor of the other
              for all
              purposes hereunder. This Services
              Agreement
              shall not be construed to create the relationship of employer or employee
              between either party hereto, and shall not create any right or legal
              relation
              between either party hereto and any other person or entity.

             

            5.4   Waivers
              and Amendments.
              Any
              term or condition of this Services
              Agreement
              may be waived at any time by the party, which is entitled to the benefit
              thereof
              by a writing executed by a duly authorized representative of
              such
              party. A waiver on any one occasion shall not be deemed a waiver of
              the same
              term or condition or any other term or condition on any future occasion.
              This
              Services Agreement may be modified or amended only by a writing duly
              executed by
              an executive officer of Company and Insurer, respectively.

             

            5.5   Governing
              Law.
              Notwithstanding anything herein to the contrary, all provisions of
              this Services
              Agreement will be governed by and construed in accordance with the
              laws of the
              State of Texas, without regard to its conflicts of law doctrine.

             

            5.6   Venue
              and Jurisdiction.
              Company
              and Insurer hereby irrevocably submit to the exclusive jurisdiction
              of any
              county, state, or federal court of general and competent jurisdiction
              located
              within the State of Texas with respect to any legal action or proceeding
              arising
              out of or connected with this Services Agreement.

            
              
                Administrative
                  Services Agreement

                
                

              

              
                -6-

                
                  

                

              

              
                
                

              

            

            

            5.7   Severability.
              If any
              provision of this Services Agreement is held to be illegal, invalid
              or
              unenforceable under any present or future law or if determined by a
              court of
              competent jurisdiction to be unenforceable, and if the rights or obligations
              of
              Company or Insurer under this Services Agreement will not be materially
              and
              adversely affected thereby, such provision shall be fully severable,
              and this
              Services Agreement will be construed and enforced as if such illegal,
              invalid or
              unenforceable provision had never comprised a part of this Services
              Agreement,
              and the remaining provisions of this Services Agreement shall remain
              in full
              force and effect and will not be affected by the illegal, invalid or
              unenforceable provision or by its severance here from.

             

            5.8   Assignment.
              This
              Services Agreement shall not be assigned by either of the parties hereto
              without
              the prior written approval of the other party.

             

            5.9   Counterparts.
              This
Services
              Agreement
              may be executed simultaneously in any number of counterparts, each
              of which
              shall be deemed an original, but all of which shall constitute one
              and the same
              instrument.

             

            5.10         Headings.
              The
              headings in this Services
              Agreement
              are for convenience only and shall not constitute a part hereof.

             

            IN
              WITNESS WHEREOF,
              the
              parties hereto have caused this Services
              Agreement
              to be executed by their duly authorized officers.

             

            
              	 	 	
                      FIC
                        INSURANCE SERVICES, L.P.

                    
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                      Date:
                        December 29, 2006

                    	 	
                      By:
                        

                    	  	
                      /s/
                        Michael
                        Hydanus

                    
	 	 	 	 	
                      Michael
                        Hydanus, Interim President & CEO

                    
	 	 	 	 	
                      Financial
                        Industries Corporation,

                    
	 	 	 	 	
                      General
                        Partner of FIC Insurance Services, L.P.

                    
	 	 	 	 	 
	 	 	 	 	 
	 	 	
                      FAMILY
                        LIFE INSURANCE COMPANY

                    
	 	 	 	 	 
	 	 	 	 	 
	
                      Date:
                        December 29, 2006

                    	 	
                      By

                    	  	
                      /s/
                        David
                        W. Harris

                    
	 	 	 	 	
                      David
                        W. Harris, Chief Executive Officer

                    

            

             

            Administrative
              Services Agreement

            
-7-REGISTRATION
      RIGHTS AGREEMENT

    
 

    Registration
      Rights Agreement
      (this
      "Agreement")
      is
      made and entered into as of January 8, 2007, by and among Langer, Inc., a
      Delaware corporation (the "Company"); and Regal Medical Supply LLC, a North
      Carolina limited liability company (the “Specified Holder”).

    

    The
      parties are entering into this Agreement pursuant to the terms of that certain
      asset purchase agreement (the "Purchase Agreement") dated as of December 15,
      2006, among the Company, Regal Acquisition Co. (the “Purchaser”), a Delaware
      corporation and wholly-owned subsidiary of the Company, the Specified Holder
      and
      each of the Principal Shareholders (as defined in the Purchase Agreement).
      Capitalized terms used and not otherwise defined herein shall have the meanings
      given such terms in the Purchase Agreement.

    

    The
      Company and the Specified Holder hereby agree as follows:

    

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

    

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

    

    "Commission"
      means the Securities and Exchange Commission.

    

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

    

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

    

    “Filing
      Date” means the day which is eleven months following the Closing
      Date.

    

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

    

    "Holder
      Information” shall mean any information reasonably related to (i) the
      Registrable Securities, (ii) the plan of distribution, and (iii) the acquisition
      of certain assets of Regal by the Purchaser.  

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

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

    

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

    

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

    

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

     

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

    

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

    

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

    

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

    

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

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

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

    

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

    

    2. Mandatory.
      

    

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

    

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

    

    3. Registration
      Procedures.
      

     

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

    

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

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

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

     

    5. Indemnification

    

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

    

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

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

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

    

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

    

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

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

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

    

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

    

    6. Miscellaneous.

    

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

    

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

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

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

    

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

    

    Langer,
      Inc.

    450
      Commack Road

    Deer
      Park, New York 11729

    Attn:
      Chief Executive Officer

    Facsimile:
      631-667-1203

     

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

    

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

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (f) Assignment
      of Registration Rights.
      The
      rights of any of the Specified Holders hereunder, including the right to have
      the Company register for resale Registrable Securities in accordance with the
      terms of this Agreement, shall be assigned only to the Principal Shareholders
      (as defined in the Purchase Agreement).

    

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

    

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

    

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

    

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

    

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

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

     

    

    
      	 	 	 
	COMPANY:	LANGER, INC.
	 
 	 
 	 
 
	 	By:  	/S/ 
W.
              Gray
              Hudkins
	 	
              
Name:
              W. Gray Hudkins
	 	Title:
              President and CEO

    

    
      	SPECIFIED
              HOLDER:	 	 
	 	REGAL MEDICAL SUPPLY, LLC
	 
 	 
 	 
 
	 	By:  	/S/ 
John
              Eric Shero
	 	
              
Name:
              John Eric Shero
	 	Title:
              President

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

       

    

    Schedule
      1

    

    Regal
      Medical Supply, LLC

    401
      Temple Highway

    Suite
      5

    Granbury,
      TX 76049

    Attn:
      John Shero

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