Document:

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                                                                    Exhibit 4(u)

                             SUB-ADVISORY AGREEMENT

     Agreement made as of September 28, 2004 between UBS GLOBAL ASSET MANAGEMENT
(US) INC., a Delaware corporation ("UBS Global AM"), and MONDRIAN INVESTMENT
PARTNERS Limited ("Sub-Adviser"), a limited company organized under the laws of
the United Kingdom (the "Agreement").

                                    RECITALS

     (1)    UBS Global AM has entered into a Management Agreement dated June 15,
1995 ("Management Agreement") with UBS PACE Select Advisors Trust ("Trust"), an
open-end management investment company registered under the Investment Company
Act of 1940, as amended ("1940 Act") with respect to UBS PACE International
Emerging Markets Equity Investments ("Portfolio"), a series of the Trust; and

     (2)    UBS Global AM desires to retain the Sub-Adviser to furnish certain
investment advisory services to UBS Global AM and the Portfolio or a designated
portion of the assets ("Segment") of the Portfolio; and

     (3)    The Sub-Adviser is willing to furnish such services.

     NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, UBS Global AM and the Sub-Adviser agree as follows:

     1.     APPOINTMENT.  UBS Global AM hereby appoints the Sub-Adviser as an
investment Sub-Adviser with respect to the Portfolio or Segment for the period.
and on the terms set forth in this Agreement. The Sub-Adviser accepts that
appointment and agrees to render the services herein set forth, for the
compensation herein provided.

     2.     DUTIES AS SUB-ADVISER.

     (a)    Subject to the supervision and direction of the Trust's Board of
Trustees (the "Board") and review by UBS Global AM, and any written guidelines
adopted by the Board or UBS Global AM, the Sub-Adviser will provide a continuous
investment program for the Portfolio or Segment, all or a designated portion of
the assets, including investment research and discretionary management with
respect to all securities and investments and cash equivalents in the Portfolio
or Segment. The Sub-Adviser will determine from time to time what investments
will be purchased, retained or sold by the Portfolio or Segment. The Sub-Adviser
will be responsible for placing purchase and sell orders for investments and for
other related transactions for the Portfolio or Segment. The Sub-Adviser
understands that the Portfolio's assets need to be managed so as to permit the
Portfolio to qualify or to continue to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code, as amended ("Code"). The
Sub-Adviser will provide services under this Agreement in accordance with the
Portfolio's investment objective, policies and restrictions as stated in the
Trust's currently effective registration statement under the 1940 Act, and any
amendments or supplements thereto ("Registration Statement").

     (b)    The Sub-Adviser agrees that it will not consult with any other
Sub-Adviser ("Other Sub-Adviser") for the Trust or Portfolio concerning any
transaction by the Portfolio or Segment in securities or., other assets,
including (i) the purchase by the Portfolio or Segment of a security issued by
the Other Sub-Adviser, or an affiliate of the Other Sub-Adviser,

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to the Trust or Portfolio except as permitted by the 1940 Act or (ii)
transactions by the Portfolio or Segment in any security for which the Other
Sub-Adviser, or its affiliate, is the principal underwriter.

     (c)    The Sub-Adviser agrees that it will be responsible for voting
proxies of issuers of securities held by the Portfolio or Segment. The
Sub-Adviser further agrees that it will adopt written proxy voting procedures
that shall comply with the requirements of the 1940 Act and the Investment
Advisers Act of 1940, as amended ("Advisers Act"), and that shall be acceptable
to the Board. The Sub-Adviser further agrees that it will provide the Board on
or before August 1" of each year, or more frequently as the Board may reasonably
request, with a written report of the proxies voted during the most recent
12-month period ending June 30, or such other period as the Board may designate,
in a format that shall comply with the 1940 Act and that shall be acceptable to
the Board.

     (d)    The Sub-Adviser agrees that, in placing orders with brokers, it will
obtain the best net result in terms of price and execution. The Sub-Adviser may
aggregate sales and purchase orders with respect to the assets of the Portfolio
or Segment with similar orders being made simultaneously for other accounts
advised by the Sub-Adviser or its affiliates. Whenever the Sub-Adviser
simultaneously places orders to purchase or sell the same security on behalf of
the Portfolio or Segment and one or more other accounts advised by the
Sub-Adviser, the orders will be allocated as to price and amount among all such
accounts in a manner believed to be equitable over time to each account. UBS
Global AM recognizes that in some cases this procedure may adversely affect the
results obtained for the Portfolio or Segment.

            Subject to the Sub-Adviser's obligations to seek best execution, UBS
Global AM agrees that the Sub-Adviser, in its sole discretion, may place
transactions on behalf of the Portfolio and the Trust with any broker-dealer
deemed to be an affiliate of the Sub-Adviser (the "Affiliated Broker-Dealers")
so long as such transactions arc effected in conformity with the requirements
(including any applicable exemptions and administrative interpretations set
forth in Part II of the Sub-Adviser's Form ADV Registration Statement on file
with the Securities and Exchange Commission ("Form ADV")) of Section 11(a)(1)(H)
of the Securities Exchange Act of 1934. In all such dealings, the Affiliated
Broker-Dealers shall be authorized and entitled to retain any commissions,
remuneration or profits which may be made in such transactions and shall not be
liable to account for the same to UBS Global AM, the Portfolio or the Trust.

            UBS Global AM further authorizes the Sub-Adviser and its Affiliated
Broker-Dealers to execute agency cross transactions (the "Cross Transactions")
on behalf of the Portfolio and the Trust. Cross Transactions are transactions
which may be effected by the Affiliated Broker-Dealers acting for both the
Portfolio or the Trust and the counterparty to the transaction. Cross
Transactions enable the Sub-Adviser to purchase or sell a block of securities
for the Portfolio or the Trust at a set pricee and possibly avoid an unfavorable
price movement that may be created through entrance into the market with such
purchase or sale order. As such, the Sub-Adviser believes that Cross
Transactions can provide meaningful benefits for the Portfolio and the Trust and
its clients generally. UBS Global AM, the Portfolio and the Trust should be
aware, however, that in a Cross Transaction an Affiliated Broker-Dealer will be
receiving commissions from both sides of the trade and, therefore, there is a
potentially conflicting division of loyalties and responsibilities.

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            (e)    The Sub-Adviser will maintain all books and records required
to be maintained pursuant to Rule 31a-1(b)(2)(ii)(3), (5), (6), (7), (9) and
(10) under the 1940 Act and the rules and regulations promulgated thereunder
with respect to transactions by the Sub-Adviser on behalf of the Portfolio or
Segment, and will furnish the Board and UBS Global AM with such periodic and
special reports as the Board or UBS Global AM reasonably may request. In
compliance with the requirements of Rule 31 a-3 under the 1940 Act, the
Sub-Adviser hereby agrees that all records which it maintains for the Portfolio
or Segment are the property of the Trust, agrees to preserve for the periods
prescribed by Rule 3la-2 under the 1940 Act any records which it maintains for
the Portfolio or Segment and which arc required to be maintained by Rule 31a-1
under the 1940 Act, and further agrees to surrender promptly to the Trust any
records which it maintains for the Portfolio Or Segment upon request by the
Trust.

            (f)    At such times as shall be reasonably requested by the Board
or UBS Global AM, the Sub-Adviser will provide the Board and UBS Global AM with
economic and investment analyses and reports as well as quarterly reports
setting forth the performance of the Portfolio or Segment and make available to
the Board and UBS Global AM any economic, statistical and investment services
that the Sub-Adviser normally makes available to its institutional or other
customers.

            (g)    In accordance with procedures adopted by the Board, as
amended from time to time, the Sub-Adviser is responsible for assisting in the
fair valuation of all portfolio securities in the Portfolio or Segment and will
use its reasonable efforts to arrange for the provision of a price or prices
from one or more parties independent of the Sub-Adviser for each portfolio
security for which the custodian does not obtain prices in the ordinary course
of business from an automated pricing service.

     3.     FURTHER DUTIES. In all matters relating to the performance of this
Agreement, the Sub-Advisor will seek to act in conformity with the Trust's Trust
Instrument, By-Laws and Registration Statement and with the written
instructions and written directions of the Board and UBS Global AM and will
comply with the applicable requirements of the 1940 Act, the Advisers Act, and
the rules under each, the Code, and all other federal and state laws and
regulations applicable to the Trust and the Portfolio. UBS Global AM agrees to
provide to the Sub-Adviser copies of the Trust's Trust Instrument, By-Laws,
Registration Statement, written instructions and directions of the Board and
UBS Global AM, and any amendments or supplements to any of these materials as
soon as practicable after such materials become available; PROVIDED, HOWEVER,
that the Sub-Adviser's duty under this Agreement to act in conformity with any
document, instruction or guideline produced by the Trust or UBS Global AM shall
not arise until it has been delivered to the Sub-Adviser. Any changes to the
objectives, policies and restrictions will make due allowance for the time
within which the Sub-Adviser shall have to come into compliance. UBS Global AM
further agrees to identify to the Sub-Adviser in writing any broker-dealers that
are affiliated with UBS Global AM (other than. UBS Financial Services Inc. and
UBS Global AM itself).

     4.     EXPENSES. During the term of this Agreement, the Sub-Adviser will
bear all expenses incurred by it in connection with its services under this
Agreement. The Sub-Adviser shall not be responsible for any expenses incurred by
the Trust, the Portfolio or UBS Global AM.

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     5.     COMPENSATION.

            (a)    For the services provided and the expenses assumed by the
Sub-Adviser pursuant to this Agreement, UBS Global AM, not the Portfolio, will
pay to the Sub-Adviser a fee, computed DAILY and payable monthly, at an annual
rate of 0.65% up to $150 million, 0.55% next $100 million. and 0.50% on assets
in excess of $250 million of the average daily net assets of the Portfolio or
Segment (computed in the manner specified in the Management Agreement), and will
provide the Sub-Adviser with a schedule showing the manner in which the fee was
computed. If the Sub-Adviser is managing a Segment, its fees will be based on
the value of the assets of the Portfolio within the Sub-Adviser's Segment.

            (b)    The fee shall be accrued daily and payable monthly to the
Sub-Adviser on or before the last business day of the next succeeding calendar
month.

            (c)    For those periods in which UBS GLOBAL AM has agreed to waive
all or a portion of its management fee, UBS Global AM may ask the Sub-Adviser to
waive the same proportion of its fees, but the Sub-Adviser is under no
obligation to do so.

            (d)    If this Agreement becomes effective or terminates before the
end of any month, the fee for the period from the effective date to the end of
the month or from the beginning of such month to the date of termination, as the
case may be, shall be pro-rated according to the proportion which such period
bears to the full month in that such effectiveness or termination occurs.

     6.     LIMITATION OF LIABILITY.

            (a)    The Sub-Adviser shall not be liable for any error of judgment
or mistake of law or for any loss suffered by the Portfolio, the Trust or its
shareholders or by UBS Global AM in connection with the matters to which this
Agreement relates, except a loss resulting from willful misfeasance, bad faith
or gross negligence on its part in the performance of its duties or from
reckless disregard by it of its obligations and duties under this Agreement.

            (b)    In no event will the Sub-Adviser have any responsibility for
any other portfolio of the Trust,, for any portion of the Portfolio not managed
by the Sub-Adviser or for the acts or omissions ~of any Other Sub-Adviser to the
Trust or Portfolio.

                   In particular, in the event the Sub-Adviser shall manage only
a portion of the Portfolio's Segment of the Portfolio, the Sub-Adviser shall
have no responsibility for the Portfolio's being in violation of any applicable
law or regulation or investment policy or restriction applicable to the
Portfolio as a whole or for the Portfolio's failing to qualify as a regulated
investment company under the: Code, if the securities and other holdings of the
Segment of the Portfolio managed by the Sub-Adviser are such that such Segment
would not be in such violation or fail to so qualify if such Segment were deemed
a separate series of the Trust or a separate "regulated investment company"
under the Code.

     7.     REPRESENTATIONS OF SUB-ADVISER. The Sub-Adviser represents, warrants
and agrees as follows:

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            (a)    The Sub-Adviser (i) is registered as an investment adviser
under the Advisers Act and will continue to be so registered for so long as this
Agreement remains in effect; (ii) is not prohibited by the 1940 Act or the
Advisers Act from performing the services contemplated by this Agreement; (iii)
has met, and will seek to continue to meet for so long as this Agreement remains
in effect, any other applicable federal or state requirements, or the applicable
requirements of any regulatory or industry self-regulatory agency, necessary to
be met in order to perform the services contemplated by this Agreement; (iv) has
the authority to enter into and perform the services contemplated by this
Agreement; and (v) will promptly notify UBS Global AM of the occurrence of any
event that would disqualify the Sub-Adviser from serving as an investment
adviser of an investment company pursuant to Section 9(a) OF the 1940 Act or
otherwise.

            (b)    The Sub-Adviser has adopted a written code of ethics
complying with the requirements of Rule 17j-1 under the 1940 Act and will
provide UBS Global AM and the Board with a copy of such code of ethics, together
with evidence of its adoption. Within fifteen days of the end of the last
calendar quarter of each year that this Agreement is in effect, a duly
authorized officer of the Sub-Adviser shall certify to UBS Global AM that the
Sub-Adviser has complied with the, requirements of Rule 17j-1 during the
previous year and that there has been no violation of the Sub-Adviser's code of
ethics or, IF SUCH a violation has occurred, that appropriate action was taken
in response to such violation. `Upon the written request of UBS Global AM, the
Sub-Adviser shall permit UBS Global AM, its employees or its agents to examine
the reports required to be made by the Sub-Adviser pursuant to Rule 17j-l(c)(1)
and all other records relevant to the Sub-Adviser's code of ethics.

            (c)    The Sub-Adviser has provided UBS Global AM with a copy of its
Form ADV as most recently filed with the Securities and Exchange Commission
("SEC") and promptly will furnish a copy of all amendments to UBS Global AM at
least annually.

            (d)    The Sub-Adviser will notify UBS Global AM of any change of
control of the SubAdviser, including any change of its general partners or 25%
shareholders or 25% limited partners, as applicable, and any changes in the key
personnel who are either the portfolio manager(s). of the Portfolio or senior
management OF THE Sub-Adviser, in each case prior to or promptly AFTER such
change.

            (e)    UBS Global AM and the Sub-Adviser agree that neither of them
nor any of their affiliates, will in any way refer directly or indirectly to
their relationship with one another or any of their respective affiliates in
offering, marketing or other promotional materials without the express written
consent of the other, which consent will be promptly provided and not
unreasonably withheld.

     8.     SERVICES NOT EXCLUSIVE. The services furnished by the Sub-Adviser
hereunder are not to be deemed exclusive, and except as the Sub-Adviser may
otherwise agree in writing, the Sub-Adviser shall be free to furnish similar
services to others so long as its services under this Agreement are not impaired
thereby. Nothing in this Agreement shall limit or restrict the right of any
director, officer or employee OF the Sub-Adviser, who may also be a trustee,
officer or employee of the Trust, to engage in any other business or to devote
his or her time and attention in part to the management or other aspects of any
other business, whether of a similar nature or a dissimilar nature.

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     9.     DURATION AND TERMINATION.

            (a)    This Agreement shall become effective upon the date first
above written, provided that this Agreement shall not take effect unless it has
first been approved (1) by a vote of a majority of those trustees of the Trust
who are not parties to this Agreement or interested persons of any such party
("Independent Trustees"), cast in person at a meeting called for the purpose of
voting on such approval, and (ii) by vote of a majority of the Portfolio's
outstanding voting securities; unless UBS Global AM has authority to enter into
this Agreement pursuant to exemptive relief from the SEC without a vote of the
Portfolio's outstanding voting securities.

            (b)    Unless sooner terminated as provided herein, this Agreement
shall continue in effect for two years from its effective date. Thereafter, if
not terminated, this Agreement shall continue automatically for successive
periods of twelve months each, provided that such continuance is specifically
approved at least annually (i) by a vote of a majority of the Independent
Trustees, cast in person at a meeting called for the purpose of voting on such
approval, and (ii) by the Board or by vote of a majority of the outstanding
voting securities of the Portfolio.

            (c)    Notwithstanding the foregoing, this Agreement may be
terminated at any time, without the payment of any penalty, by vote of the Board
or by a vote of a majority of the outstanding voting securities of the Portfolio
on 60 days' written notice to the Sub-Adviser. This Agreement may also be
terminated, without the payment of any penalty, by UBS Global AM: (i) upon 120
days' written notice to the Sub-Adviser; (ii) upon material breach by the
Sub-Adviser of any OF the representations, warranties and agreements set forth
in Paragraph 7 of this Agreement; or (iii) immediately if, in the reasonable
judgment of UBS Global AM, the SubAdviser becomes unable to discharge its duties
and obligations under this Agreement, including circumstances such as financial
insolvency of the Sub-Adviser or other circumstances that could adversely affect
the Portfolio. The Sub-Adviser may terminate this Agreement at any time, without
the payment of any penalty, on 120 days' written notice to UBS Global AM. This
Agreement will terminate automatically in the event of its assignment or upon
termination of the Management Agreement, as it related to this Portfolio.

     10.    AMENDMENT OF THIS AGREEMENT. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought. To the extent required by applicable law, no
amendment of this Agreement shall be effective until approved (i) by a vote of a
majority of the Independent Trustees, and (ii) if the terms of this Agreement
shall have changed, by a vote of a majority of the Portfolio's outstanding
voting securities (except in the case of (ii), pursuant to the terms and
conditions of the SEC order permitting it to modify the Agreement without such
vote).

     11.    GOVERNING LAW. This Agreement shall be construed in accordance with
the 1940 Act and the laws of the State of New York, without giving effect to the
conflicts of laws principles thereof. To the extent that the applicable laws of
the State of New York conflict with the applicable provisions of the 1940 Act,
the latter shall control.

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     12.    MISCELLANEOUS. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. If any
provision of this Agreement shall be held or made invalid by a court decision,
statute, rule or otherwise, the remainder of this Agreement shall not be
affected thereby. This Agreement shall be binding upon AND shall inure to the
benefit of the parties hereto and their respective successors. As used in this
Agreement, the terms "majority of the outstanding; voting securities,"
"affiliated person," "interested person," "assignment," "broker," "investment'
adviser," "net assets," "sale," "sell" and "security" shall have the same
meanings as such terms have in the 1940 Act, subject to such exemption as may be
granted by the SEC by any rule, regulation or order. Where the effect of a
requirement of the federal securities laws reflected in any provision of this
Agreement is made less restrictive by a rule, regulation or order of the SEC,
whether of special or general application, such provision shall be deemed to
incorporate the effect of SUCH rule, regulation or order. This Agreement may be
signed in counterpart.

     13.    NOTICES. Any notice herein required is to be in writing and is
deemed to have been given to the Sub-Adviser or UBS Global AM upon receipt of
the same at their respective addresses set forth below. All written notices
required or permitted to be given under this Agreement will be delivered by
personal service, by postage mail return receipt requested or by facsimile
machine or a similar means of same delivery which provides evidence of receipt
(with a confirming copy by mai I as set forth herein), All notices provided to
UBS Global AM will be sent to the attention of Mark Kemper, General Counsel. All
notices provided to the Sub-Adviser will be sent to the attention of James F.
Brecker, Vice President Mondrian Investment Partners Limited 2001 Market Street,
Philadelphia, PA 19103.

     IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their duly authorized signatories as of the date and year first
above written.

     IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their duly authorized signatories as of the date and year first
above written.

                                              UBS GLOBAL ASSET
                                              MANAGEMENT (US) INC.
                                              51 West 52nd Street
                                              New York, New York 10019-6114

Attest:

By:  /s/ James Capezzuto                      By: /s/ Douglas Beck
     -------------------------                    -------------------------
     Name: James Capezzuto                        Name: Douglas Beck
     Title: Director                              Title: Executive Director

Attest:

By:  /s/ James Capezzuto                      By: /s/ Mark Carver
     -------------------------                    -------------------------
     Name: James Capezzuto                        Name: Mark Carver
     Title: Director                              Title: Executive Director

                                              MONDRIAN INVESTMENT PARTNERS
                                              LIMITED
                                              80 Cheapside, third Floor
                                              London EC2 V6EE

Attest:

By:  /s/ John L. Barrett                          By: /s/ David G. Tilles
     -------------------------                    -------------------------
     Name: John L. Barrett                        Name: David G. Tilles
     Title: Chief Compliance Officer              Title: Managing Director & CIOExhibit 10.2

 

EMPLOYMENT
AGREEMENT

 

                EMPLOYMENT
AGREEMENT (the “Agreement”), dated as of January 1, 2004 (the
“Commencement Date”), between Langer, Inc., a Delaware corporation, (the
“Company”) and Steven Goldstein (the “Employee”).

 

W I T N E S S E T H :

 

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

 

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

 

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

 

                1.             Term.

 

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

 

                2.             Duties.

 

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

 

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

 

1

 

                3.             Bonus, Stock Options, Benefits,
etc.

 

                                (a)  Salary.   During the Term of this Agreement, the Company shall pay to the
Employee, and the Employee shall accept from the Company, as compensation for
the performance of services under this Agreement and the Employee’s observance
and performance of all of the provisions hereof, an annual salary at the rate
of $250,000 (the “Base Compensation”). 
The Base Compensation shall be payable in accordance with the normal
payroll practices of the Company and shall be subject to withholding for
applicable taxes and other amounts. The Employee’s performance and the Base Compensation
shall be subject to annual review by the Company.

 

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

 

(c)  Stock
Options. The Company shall issue and grant to Employee, under
the Company’s 2001 Stock Incentive Plan (the “Plan”), options to purchase
100,000 shares of the Company’s common stock (“Common Stock”) having an
exercise price equal to the closing price of the Common Stock on the date of
grant, of which (i) 33,334 shall vest on the first anniversary of the date
of grant; (ii) 33,333 shall vest on the second anniversary of the date of
grant; and (iii) 33,333 shall vest on the third anniversary of date of grant.  During the Term of this Agreement the
Employee agrees not to sell, pledge, hypothecate or otherwise transfer the
Common Stock issuable upon the exercise of each tranche of options identified
above within a one year period after vesting of each such tranche without the
consent of the Board of Directors.  The
terms and provisions of such options shall be set forth in a stock option
agreement in a form satisfactory to the Company and consistent with the
Company’s standard form of stock option agreement under the Plan.   In addition, the Employee may be entitled,
during the term of this Agreement, to receive such additional options, at such
exercise prices and other terms as the Compensation Committee of the Board may,
in its sole and absolute discretion, determine.

 

(d)  Car
Allowance.  The Employee
shall receive a monthly car allowance of $500 payable monthly in arrears during
the Term.

 

(e)  Benefits.  During the Term of this Agreement, the Employee shall be entitled
to participate in or benefit from, in accordance with the eligibility and other
provisions thereof, the Company’s medical insurance and other fringe benefit
plans or policies as the Company may make available to, or have in effect for,
its senior executive officers from time to time.  The
Company and its affiliates retain the right to terminate or

 

2

 

alter any such plans or policies from time to time.  In addition, during the Term the Company
shall maintain term life insurance on the Employee in the amount of $1,000,000
for the benefit of the Employee’s designees (the “Life Insurance”).  The Employee shall also be entitled to four weeks paid
vacation each year, sick leave and other similar benefits in accordance with
policies of the Company from time to time in effect for its senior
executive officers.

 

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

 

                4.             Representations of Employee.

 

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

 

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

 

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

 

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

 

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

 

                                (a)  Confidential Information.  (i) 
The Employee acknowledges that as a result of his retention by the
Company, the Employee has and will continue to have knowledge of, and access
to, proprietary and confidential information of the Company, including, without
limitation, research and development plans and results, software, databases,
technology, inventions, trade secrets, technical information, know-how, plans,
specifications, methods of operations, product and service information, product
and service availability, pricing information (including pricing strategies),
financial, business and marketing information and plans, and the identity of
customers, clients and suppliers (collectively, the “Confidential
Information”), and that the Confidential Information, even though it may be
contributed, developed or acquired by the Employee, constitutes valuable,
special and unique assets of the Company developed at great expense which are
the exclusive property of the Company. 
Accordingly, the Employee shall not, at any time, either during or subsequent
to the Term of this Agreement, use, reveal, report, publish, transfer or
otherwise disclose to any person, corporation or other entity, any of the
Confidential Information without the prior written consent of the Company,
except to responsible officers and employees of the Company and other
responsible persons who are in a contractual or fiduciary relationship with the
Company and who have a need for such Confidential Information for purposes in
the best interests of the Company, and except for such Confidential Information
which is or becomes of general public knowledge from authorized sources other
than the Employee.

 

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

 

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

 

                                (c)  Inventions, etc.  During the Term and for a period of one year
thereafter, the Employee will promptly disclose to the Company all designs,
processes, inventions, improvements, developments, discoveries, processes,
techniques, and other

 

4

 

information related to the business of the Company conceived,
developed, acquired, or reduced to practice by him alone or with others during
the Term of this Agreement, whether or not conceived during regular working
hours, through the use of Company time, material or facilities or otherwise
(“Inventions”).

 

                                The
Employee agrees that all copyrights created in conjunction with his service to
the Company and other Inventions, are “works made for hire” (as that term is
defined under the Copyright Act of 1976, as amended).  All such copyrights, trademarks, and other Inventions shall be
the sole and exclusive property of the Company, and the Company shall be the
sole owner of all patents, copyrights, trademarks, trade secrets, and other
rights and protection in connection therewith. 
To the extent any such copyright and other Inventions may not be works
for hire, the Employee hereby assigns to the Corporation any and all rights he
or she now has or may hereafter acquire in such copyrights and any other
Inventions. Upon request the Employee shall deliver to the Company all
drawings, models and other data and records relating to such copyrights,
trademarks and Inventions. The Employee further agrees as to all such
Inventions, to assist the Company in every proper way (but at the Company’s
expense) to obtain, register, and from time to time enforce patents,
copyrights, trademarks, trade secrets, and other rights and protection relating
to said Inventions in and all countries, and to that end the Employee shall
execute all documents for use in applying for and obtaining such patents,
copyrights, trademarks, trade secrets and other rights and protection on and
enforcing such Inventions, as the Company may desire, together with  any assignments thereof to the Company or
persons designated by it.  Such
obligation to assist the Company shall continue beyond the termination of the
Employee’s service to the Company, but the Company shall compensate the
Employee at a reasonable rate after termination of service for time actually
spent by the Employee at the Company’s request for such assistance. In the event
the Company is unable, after reasonable effort, to secure the Employee’s
signature on any document or documents needed to apply for or prosecute any
patent, copyright, trademark, trade secret, or other right or protection
relating to an Invention, whether because of the Employee’s physical or mental
incapacity or for any other reason whatsoever, the Employee hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents
as his agent coupled with an interest and attorney-in-fact, to act for and in
his behalf and stead to execute and file any such application or applications
and to do all other lawfully permitted acts to further the prosecution and
issuance of patents, copyrights, trademarks, trade secrets, or similar rights
or protection thereon with the same legal force and effect as if executed by
the Employee.

 

(d)           Non-competition.  The Employee will not utilize his special
knowledge of the business operations of the Company and his relationships with
customers, suppliers of the Company and others to compete with the
Company.  During the Term of this
Agreement and (i) for a period of (A) one year after the termination of this
Agreement pursuant to Sections 7(a), 7(b) or 7(e) hereof, as applicable; or (B)
in the event of termination pursuant to Section 7(c), the duration of the
Severance Period (as defined in Section 7(f)); or (ii) in the event the
Agreement is not renewed, the Severance Period, if any; the Employee shall not
engage, directly or indirectly, or have an interest,

 

5

 

directly or indirectly, anywhere in the
United States of America or any other geographic area where the Company does business or in which
its products or services are marketed, alone or in association with others, as
principal, officer, agent, Employee, director, partner or stockholder (except
with respect to his employment by the Company), or through the investment of
capital, lending of money or property, rendering of services or otherwise, in
any business competitive with or substantially similar to that engaged in by
the Company during the Term of this Agreement (it being understood hereby, that
the ownership by the Employee of five percent (5%) or less of the stock of any
company listed on a national securities exchange shall not be deemed a
violation of this Section 5).

 

(e)           Non-solicitation.  During the Term of this Agreement and (i) for a period of (A)
one year after the termination of this Agreement pursuant to Sections 7(a),
7(b) or 7(e) hereof, as applicable; or (B)in the event of termination pursuant
to Section 7(c), the duration of the Severance Period (as defined in Section
7(f)); or (ii) in the event the Agreement is not renewed, the Severance Period,
if any; the Employee
shall not, and shall not permit any of his employees, agents or others under
his control to, directly or indirectly, on behalf of himself or any other
person, (i) call upon, accept competitive business from, or solicit the
competitive business of any individual or entity who is, or who had been at any
time during the preceding two years, a customer of the Company or any successor
to the business of the Company, or otherwise divert or attempt to divert any
business from the Company or any such successor, or (ii) directly or indirectly
recruit or otherwise solicit or induce any person who is an Employee of, or
otherwise engaged by, the Company or any successor to the business of the
Company to terminate his employment or other relationship with the Company or
such successor, or hire or enter into any business with any person is employed
by or who has left the employ of the Company or any such successor during the
preceding two years.  The Employee shall
not at any time, directly or indirectly, use or purport to authorize any person
to use any name, mark, logo, trade dress or other identifying words or images
which are the same as or similar to those used at any time by the Company in
connection with any product or service, whether or not such use would be in a
business competitive with that of the Company. 
Any breach or violation by the Employee of the provisions of this
Section 5 shall toll the running of any time periods set forth in this Section
5 for the duration of any such breach or violation.

 

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

 

                6.             Remedies. The restrictions set forth
in Section 5 are considered by the parties to be fair and reasonable.  The Employee acknowledges that the
restrictions contained in Section 5 will not prevent him from earning a
livelihood.  The Employee further
acknowledges that the Company would be irreparably harmed and that monetary
damages would not provide an adequate remedy in the event of a breach of the
provisions

 

6

 

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

 

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

 

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

 

(b)  Cause. 
This Agreement may be terminated at the Company’s option, immediately
upon written notice to the Employee, upon: (i) the Employee’s commission of a
misdemeanor or felony that, in the Board’s reasonable judgment, adversely
affects the Company’s or any of the Company’s affiliates’ reputation, business
or interests, or the ability of the Employee to perform his duties as an
employee of the Company; (b) the Employee’s act of fraud or dishonest act upon,
or misappropriation of funds of, the Company or any of the Company’s
affiliates; (c) the Employee’s gross negligence,

 

7

 

willful or intentional act or omission in the
performance of his duties under this Agreement as determined by the Board; (d)
the Employee’s disregard of a lawful direction of the Board or the executive
officer to whom the Employee reports; (e) the Employee’s appropriation for
himself of a Company corporate opportunity without the express prior written
consent of the Board; (f) the Employee’s material breach of any of his
obligations under this Agreement (other than Section 5 of this Agreement) that
continues unremedied for 14 days following the Employee’s receipt of written
notice from the Board thereof; (g) the Employee’s breach of any of his
obligations of any of the provisions of Section 5 of this Agreement; or (h) the
Employee is convicted of a felony. If this Agreement is terminated by the
Company for cause, then the Employee shall be entitled to receive accrued Base
Compensation through the date of such termination.

 

(c)  Without Cause.  This Agreement may be terminated, at any
time by the Company without cause immediately upon giving written notice to the
Employee of such termination.  In such
event, Company shall, continue to pay to the Employee his Base Compensation on
a bi-monthly basis in accordance with the normal payroll practices of the
Company for a period of six months commencing with the effective date of any
termination pursuant to this Section 7(c), provided, however, Employee’s right
to receive any such payment shall be subject to the Employee complying with the
terms of this Agreement.  Additionally,
the Company shall have the right, at its election if made on or before the time
of termination, to continue to pay the Employee his Base Compensation for an
additional period of up to six months, and if the Company so elects, the
Employee shall be bound by the provisions of Sections 5(d) and 5(e) of this
Agreement for such additional period.

 

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

 

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

 

                                (f)
Severance
Payment.  The period of
time during which the Company continues to pay (or would continue to pay, but
for any breach by the Employee of this Agreement) the Employee following the
termination or expiration of this Agreement

 

8

 

pursuant to 
Sections 7(c) or 7(d) shall be referred to as the “Severance Period”,
and the amounts due thereunder shall be referred to as the “Severance
Payment.”  The Severance Payment shall
be payable, bi-monthly in accordance with the normal payroll practices of the
Company and shall be subject to withholding for applicable taxes and other
amounts. In lieu of cash, at the option of the Company, the Severance Payment
may be payable through the issuance of Common Stock on the effective date of such
termination or expiration, based upon the closing price of the Common Stock on
such date.

 

                8.             
Miscellaneous.

 

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

 

                                (b)  Entire Agreement.  This Agreement sets forth the entire
understanding of the parties and, except as specifically set forth herein,
merges and supersedes any prior or contemporaneous agreements between the
parties pertaining to the subject matter hereof.  Without limiting the generality of the foregoing, this agreement
supersedes that certain employment agreement dated as of February 13, 2001, as
amended to date, and such agreement shall not be deemed renewed for any period
commencing on or after January 1, 2005.

 

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

 

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

 

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

 

9

 

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

 

	
  If to the Company:

  Langer, Inc.

  450 Commack Road

  Deer Park, New York 11729

  Facsimile: (631) 667-1203

  Attention: Chief Executive
  Officer

  	
   

  	
  With a copy to:

  Kane Kessler, P.C.

  1350 Avenue of the
  Americas

  New York, New York 10019

  Facsimile: (212) 245-3009

  Attention: Robert L.
  Lawrence, Esq.

  
	
   

  	
   

  	
   

  
	
  If to the Employee, to:

  Steven Goldstein

  14 Vanad Drive

  East Hills, New York 11576

  Facsimile:

  	
   

  	
  With a copy to:

  Facsimile:

  Attention:

  

 

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

 

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

 

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

 

10

 

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

 

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

 

[SIGNATURE PAGE FOLLOWS]

 

11

 

                IN WITNESS
WHEREOF, each of the parties hereto has duly executed this
Employment Agreement as of the date set forth above.

 

	
  Langer, Inc.  

  	
  Employee

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Steven
  Goldstein

  
	
   

  	
  Title:

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