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<div style="font-family:Times New Roman;">
 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;font-weight:bold;margin:0pt 0pt .0001pt;padding:0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">As filed with the Securities and Exchange Commission on December&nbsp;29, 2005</font></b></p> <p align="right" style="border:none;font-weight:bold;margin:0pt 0pt 12.0pt;padding:0pt;page-break-after:avoid;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registration No. 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p> </div>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:16.0pt;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 4.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington,
D.C. 20549</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 2.0pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:16.0pt;">FORM&nbsp;S-8</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 4.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">REGISTRATION
STATEMENT<br>
UNDER<br>
THE SECURITIES ACT OF 1933</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:16.0pt;">LANGER, INC.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(Exact name of registrant
as specified in its charter)</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="309" valign="top" style="padding:0pt .7pt 0pt .7pt;width:231.4pt;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" style="font-size:8.0pt;font-weight:bold;">Delaware</font></b></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:18.65pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="308" valign="top" style="padding:0pt .7pt 0pt .7pt;width:231.35pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">11-2239561</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="309" valign="top" style="padding:0pt .7pt 0pt .7pt;width:231.4pt;">
  <p align="center" style="line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(State or other jurisdiction<br>
  of incorporation or organization)</font></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:18.65pt;">
  <p style="line-height:8.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="308" valign="top" style="padding:0pt .7pt 0pt .7pt;width:231.35pt;">
  <p align="center" style="line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(I.R.S. Employer<br>
  Identification Number)</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 6.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-weight:bold;line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">450 Commack Road<br>
Deer Park, New York 11729-4510<br>
(631)&nbsp;667-1200</font></b></p>

<p style="margin:0pt 0pt 1.0pt;page-break-after:avoid;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(Address, including zip
code, and telephone number, including area code, of principal executive
offices)</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt 2.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;">

</font></div>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Langer,&nbsp;Inc. 2005 Stock Incentive Plan</font></b></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">The Langer Biomechanics Group,&nbsp;Inc. 2001 Stock Incentive Plan</font></b></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Stock Option Agreement between Langer,&nbsp;Inc. and W. Gray Hudkins,
dated November&nbsp;12, 2004</font></b></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Restricted Stock Agreement between Langer,&nbsp;Inc. and W. Gray Hudkins,
dated November&nbsp;12, 2004</font></b></p>

<p style="margin:0pt 0pt 1.0pt;page-break-after:avoid;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(Full title of the plan)</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt 2.0pt;page-break-after:avoid;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">

<hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;">

</font></div>

<p style="font-weight:bold;line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Andrew H. Meyers<br>
President and Chief Executive Officer<br>
Langer,&nbsp;Inc.<br>
</font></b><font size="1" style="font-size:8.0pt;">450 Commack Road</font><font size="1" style="font-size:8.0pt;"><br>
</font><font size="1" style="font-size:8.0pt;">Deer Park, New York 11729-4510</font><font size="1" style="font-size:8.0pt;"><br>
</font><font size="1" style="font-size:8.0pt;">(631)&nbsp;667-1200</font></p>

<p style="margin:0pt 0pt 2.0pt;page-break-after:avoid;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(Name, address, including
zip code, and telephone number, including area code, of agent for service)</font></p>

<p style="font-weight:bold;line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Copy to:</font></b></p>

<p style="font-weight:bold;line-height:9.0pt;margin:0pt 0pt 8.0pt;page-break-after:auto;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Kane Kessler, P.C.<br>
1350 Avenue of the Americas<br>
New York, NY&#160; 10019-4896<br>
(212) 541-6222<br>
Attn:&#160; Robert L. Lawrence,&nbsp;Esq.</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">CALCULATION
OF REGISTRATION FEE</font></b></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="261" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:195.75pt;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;">Title&nbsp;of&nbsp;securities<br>
  to&nbsp;be&nbsp;registered</p>
  </td>
  <td width="4" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:3.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:2.2pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.9pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="73" colspan="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:54.65pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Amount&nbsp;to&nbsp;be<br>
  registered(1)</font></b></p>
  </td>
  <td width="4" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:3.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:2.2pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.9pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="103" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:77.25pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Proposed&nbsp;maximum<br>
  offering&nbsp;price&nbsp;per<br>
  share(2)</font></b></p>
  </td>
  <td width="4" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:3.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:2.2pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.9pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="103" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:77.25pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Proposed&nbsp;maximum<br>
  aggregate&nbsp;offering<br>
  price(2)</font></b></p>
  </td>
  <td width="4" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:3.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:2.2pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.9pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="91" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:68.3pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Amount&nbsp;of&nbsp;<br>
  registration&nbsp;fee(3)</font></b></p>
  </td>
  <td width="3" valign="bottom" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.9pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="261" valign="top" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:195.75pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">Common Stock,
  $0.02 par value per share</font></p>
  </td>
  <td width="4" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:3.3pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:2.2pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:4.45pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="61" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:45.65pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">2,190,000</font></p>
  </td>
  <td width="6" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:4.55pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:3.3pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:2.2pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="103" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:77.25pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$4.69</font></p>
  </td>
  <td width="4" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:3.3pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:2.2pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="103" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:77.25pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$10,271,100</font></p>
  </td>
  <td width="4" valign="bottom" style="border-bottom:double windowtext 1.5pt;border-left:none;border-right:solid windowtext 1.0pt;border-top:none;padding:0pt .7pt 0pt 0pt;width:3.3pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:2.2pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:68.3pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">$1,099</font></p>
  </td>
  <td width="3" valign="bottom" style="border:none;border-bottom:double windowtext 1.5pt;padding:0pt .7pt 0pt 0pt;width:1.9pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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<p style="line-height:1.0pt;margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="line-height:8.0pt;margin:0pt 0pt 3.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(1)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.0pt;">This Registration Statement covers (i)&nbsp;2,000,000
shares of common stock (the &#147;Common Stock&#148;), $0.02 par value per share, of
Langer,&nbsp;Inc. issuable pursuant to the Langer Inc. 2005 Stock Incentive
Plan (the &#147;2005 Incentive Plan&#148;); (ii)&nbsp;150,000 shares of Common Stock
issuable pursuant to the Stock Option Agreement between Langer,&nbsp;Inc. and
W. Gray Hudkins, dated November&nbsp;12, 2004 (the &#147;Hudkins Stock Option
Agreement&#148;); and (iii)&nbsp;40,000 shares of Common Stock issuable pursuant to
the Restricted Stock Agreement between Langer,&nbsp;Inc. and W.&nbsp;Gray
Hudkins, dated November&nbsp;12, 2004 (the &#147;Hudkins Restricted Stock Agreement&#148;).
Each of the 2005 Incentive Plan, the Hudkins Stock Option Agreement, and the
Hudkins Restricted Stock Agreement are collectively referred to herein as the &#147;Plans&#148;.
In addition, pursuant to Rule&nbsp;416(c)&nbsp;under the Securities Act of
1933, as amended (the &#147;Securities Act&#148;) this Registration Statement covers an
indeterminable number of additional shares of Common Stock as may hereafter be
offered or issued pursuant to the Plans, to prevent dilution resulting from
stock splits, stock dividends or similar transactions effected without receipt
of consideration.</font></p>

<p style="line-height:8.0pt;margin:0pt 0pt 4.0pt 20.0pt;page-break-after:avoid;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(2)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.0pt;">Estimated solely for the purpose of
calculating the registration fee. Pursuant to Rule&nbsp;457(c)&nbsp;and 457(h),
the proposed maximum offering price per share is based upon (i)&nbsp;the
average exercise price relating to 240,000 outstanding options granted under
2005 Incentive Plan, and 150,000 options granted under the Hudkins Stock Option
Agreement, which is $7.50 and (ii)&nbsp;with respect to 1,660,000 shares
available for grant under the 2005 Incentive Plan, 100,000 shares issuable
pursuant to restricted stock awards granted under the 2005 Incentive Plan and
40,000 shares issuable pursuant to the Hudkins Restricted Stock Agreement, a
price of $4.69 (the average of the high and low price of the Registrant&#146;s
Common Stock as reported on The Nasdaq Stock Market on December&nbsp;23, 2005).</font></p>

<p style="line-height:8.0pt;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.0pt;">(3)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.0pt;">Pursuant to Rule&nbsp;429(b)&nbsp;under
the Securities Act, this Registration Statement includes up to 434,128 shares
of Common Stock issued or issuable pursuant to The Langer Biomechanics Group,&nbsp;Inc.
2001 Stock Incentive Plan (the &#147;2001 Stock Incentive Plan&#148;) that were
previously registered on Form&nbsp;S-8 (Registration Statement No.&nbsp;333-110962)
filed on December&nbsp;5, 2003. In connection with the previously registered
shares for issuance under the 2001 Stock Incentive Plan, the Registrant paid a
fee of $367.69, a portion of which is attributable to the 434,128 shares being
carried forward in a combined reoffer prospectus being filed herewith (to the
extent that there are or may be control or restricted securities). See the Rule&nbsp;429
note below. In connection with this Registration Statement, the Registrant is
paying a fee solely on the 2,190,000 additional shares of the Registrant&#146;s
Common Stock being registered. In addition, as permitted by Rule&nbsp;429 under
the Securities Act of 1933, the prospectus filed together with this
Registration Statement shall be deemed to be a combined resale prospectus which
shall also relate to the Registrant&#146;s Registration Statement No.&nbsp;333-110962
on Form&nbsp;S-8.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="ExplanatoryNote_214809"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXPLANATORY NOTE</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The 2,190,000 shares of common stock, $0.02 par value
per share (the &#147;Common Stock&#148;) of Langer,&nbsp;Inc., a Delaware corporation
(the &#147;Company&#148;), being registered pursuant to this Form&nbsp;S-8 are
issued or issuable pursuant to (i)&nbsp;the Langer Inc. 2005 Stock Incentive
Plan (the &#147;2005 Incentive Plan&#148;); (ii)&nbsp;the Stock Option Agreement between
Langer,&nbsp;Inc. and W. Gray Hudkins, dated November&nbsp;12, 2004 (the &#147;Hudkins
Stock Option Agreement&#148;); and (iii)&nbsp;the Restricted Stock Agreement between
Langer,&nbsp;Inc. and W. Gray Hudkins, dated November&nbsp;12, 2004 (the &#147;Hudkins
Restricted Stock Agreement&#148;). This Registration Statement also includes up to 434,128
shares of Common Stock issued or issuable pursuant to The Langer Biomechanics
Group,&nbsp;Inc. 2001 Stock Incentive Plan (the &#147;2001 Stock Incentive Plan&#148;)
that were previously registered on Form&nbsp;S-8 (Registration Statement No.&nbsp;333-110962)
filed on December&nbsp;5, 2003 (the &#147;2003 Registration Statement&#148;). Pursuant to
General Instruction E to Form&nbsp;S-8, this Registration Statement
incorporates by reference the contents of the 2003 Registration Statement. Each
of the 2005 Incentive Plan, the Hudkins Stock Option Agreement, the Hudkins
Restricted Stock Agreement, and the 2001 Stock Incentive Plan are collectively
referred to herein as the &#147;Plans&#148;.</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Registration Statement contains two parts. The
first part contains a Prospectus pursuant to Form&nbsp;S-3 (in accordance
with Section&nbsp;C of the General Instructions to the Form&nbsp;S-8)
which covers reoffers and resales of &#147;restricted securities&#148; and/or &#147;control
securities&#148; (as such terms are defined in Section&nbsp;C of the General
Instructions to Form&nbsp;S-8) of the Company. This Reoffer Prospectus
relates to up to </font>1,309,428
shares of Common Stock that have been or may be issued to certain
officers and directors of the Company pursuant to the Plans. The second part of
this Registration Statement contains Information Required in the Registration
Statement pursuant to Part&nbsp;II of Form&nbsp;S-8. The Form&nbsp;S-8
portion of this Registration Statement will be used for offers of shares of
Common Stock of the Company pursuant to the 2005 Incentive Plan, the Hudkins Stock Option Agreement, and the
Hudkins Restricted Stock Agreement.</p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">ii</font></p>
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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="Parti_211901"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PART&nbsp;I</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="InformationRequiredInTheSection10_211901"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">INFORMATION REQUIRED IN THE SECTION&nbsp;10(a)&nbsp;PROSPECTUS</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item1_planInformation_211901"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 1. &nbsp;&nbsp;Plan Information</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The document(s)&nbsp;containing
the information specified in Part&nbsp;I of Form&nbsp;S-8 will be sent or
given to participants in the Plans as specified by Rule&nbsp;428(b)(1)&nbsp;under
the Securities Act. Such documents are not being filed with the Securities and
Exchange Commission, but constitute, along with the documents incorporated by
reference into this Registration Statement, a prospectus that meets the
requirements of Section&nbsp;10(a)&nbsp;of the Securities Act.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item2_companyInformationAndEmploy_211902"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 2. &nbsp;&nbsp;Company Information and Employee
Plan Annual Information</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will furnish without charge to each person
to whom the Prospectus is delivered, upon the written or oral request of such
person, a copy of any and all of the documents incorporated by reference in
Item 3 of Part&nbsp;II of this Registration Statement, other than exhibits to
such documents (unless such exhibits are specifically incorporated by reference
to the information that is incorporated). Those documents are incorporated by
reference in the Section&nbsp;10(a)&nbsp;prospectus. Requests should be
directed to Langer,&nbsp;Inc., 450
Commack Road, Deer Park, New
York 11729-4510, Attention: Secretary; telephone number (631)&nbsp;667-1200.</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt;"><font style="font-weight:bold;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Note:</font></b></font><font face="Times New Roman">&nbsp;&nbsp; </font>The
Reoffer Prospectus referred to in the Explanatory Note follows this page.</p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">iii</font></p>
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<p style="font-weight:bold;margin:0pt 0pt 8.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">REOFFER
PROSPECTUS</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 8.0pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">LANGER, INC.</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">1,309,428 SHARES OF COMMON STOCK<br>
(par value $0.02 per share)</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Prospectus relates to up to 1,309,428 shares (the
&#147;Shares&#148;) of common stock, $0.02 par value per share (the &#147;Common Stock&#148;), of
Langer,&nbsp;Inc., a Delaware corporation (the &#147;Company&#148; or &#147;Langer&#148;) which may
be offered and sold from time to time by certain stockholders of the Company
(the &#147;Selling Stockholders&#148;) who have acquired or will acquire such Shares
pursuant to stock options and stock grants issued or issuable under the (i)&nbsp;the
Langer Inc. 2005 Stock Incentive Plan (the &#147;2005 Incentive Plan&#148;); (ii)&nbsp;the
Stock Option Agreement between Langer,&nbsp;Inc. and W. Gray Hudkins, dated November&nbsp;12,
2004 (the &#147;Hudkins Stock Option Agreement&#148;); (iii)&nbsp;the Restricted Stock
Agreement between Langer,&nbsp;Inc. and W. Gray Hudkins, dated November&nbsp;12,
2004 (the &#147;Hudkins Restricted Stock Agreement&#148;); and (iv)&nbsp;the Langer
Biomechanics Group,&nbsp;Inc. 2001 Stock Incentive Plan (the &#147;2001 Stock
Incentive Plan&#148;). Each of the 2005 Incentive Plan, the Hudkins Stock Option
Agreement, the Hudkins Restricted Stock Agreement, and the 2001 Stock Incentive
Plan are collectively referred to herein as the &#147;Plans&#148;.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will not receive any of the proceeds from
sales of the Shares by any of the Selling Stockholders. The Shares may be
offered from time to time by any or all of the Selling Stockholders (and their
donees and pledgees) through ordinary brokerage transactions, in negotiated
transactions or in other transactions, at such prices as he or she may
determine, which may relate to market prices prevailing at the time of sale or
be a negotiated price. See &#147;Plan of Distribution.&#148;&#160; All costs, expenses and fees in connection
with the registration of the Shares will be borne by the Company. Brokerage
commissions and similar selling expenses, if any, attributable to the offer or
sale of the Shares will be borne by the Selling Stockholder (or their donees
and pledgees).</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Selling Stockholder and any broker executing
selling orders on behalf of a Selling Stockholder may be deemed to be an &#147;underwriter&#148;
as defined in the Securities Act of 1933, as amended (the &#147;Securities Act&#148;). If
any broker-dealers are used to effect sales, any commissions paid to
broker-dealers and, if broker-dealers purchase any of the Shares as principals,
any profits received by such broker-dealers on the resale of the Shares, may be
deemed to be underwriting discounts or commissions under the Securities Act. In
addition, any profits realized by the Selling Stockholders may be deemed to be
underwriting commissions.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Common Stock is listed
on The Nasdaq Stock Market. On December&nbsp;23, 2005, the closing price of our
Common Stock was $4.72 per share.</font></p>

<div style="line-height:9.0pt;margin:0pt 0pt 8.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;">

</font></div>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">See &#147;Risk
Factors&#148; on page&nbsp;3 hereof for a discussion of certain factors that should
be carefully considered by prospective purchasers.</font></b></p>

<div style="line-height:9.0pt;margin:0pt 0pt 9.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;">

</font></div>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Neither
the Securities and Exchange Commission nor any state securities commission has
approved or disapproved these securities, or determined if this Prospectus is
truthful or complete. Any representation to the contrary is a criminal offense.</font></b></p>

<div style="line-height:9.0pt;margin:0pt 0pt 10.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;">

</font></div>

<p align="center" style="margin:0pt 0pt 6.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The date of this
Prospectus is December&nbsp;23, 2005.</font></p>

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<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You should rely only on
the information included in or incorporated by reference into this Prospectus
or information we have referred to in this Prospectus. We have not authorized
anyone to provide you with information that is different. This Prospectus may
only be used where it is legal to sell these securities. This Prospectus is not
an offer to sell, or a solicitation of an offer to buy, in any state where the
offer or sale is prohibited. The information in this Prospectus is accurate on
the date of this Prospectus and may become obsolete later. Neither the delivery
of this Prospectus, nor any sale made under this Prospectus will, under any
circumstances, imply that the information in this Prospectus is correct as of
any date after the date of this Prospectus. References to &#147;the Company,&#148; &#147;Langer,&#148;
&#147;we&#148; or &#147;us&#148; refer to Langer,&nbsp;Inc.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><a name="TableOfContents_212911"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">TABLE OF CONTENTS</font></b></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="568" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:425.9pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="25" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:18.5pt;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;">Page</p>
  </td>
 </tr>
 <tr>
  <td width="568" valign="top" style="padding:0pt .7pt 0pt 0pt;width:425.9pt;">
  <p style="margin:0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="a05-22463_1s8.htm#RiskFactors_211844" title="Click to goto ">RISK FACTORS</a></font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.5pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  </td>
 </tr>
 <tr>
  <td width="568" valign="top" style="padding:0pt .7pt 0pt 0pt;width:425.9pt;">
  <p style="margin:6.0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="a05-22463_1s8.htm#ForwardlookingStatements_212853" title="Click to goto ">FORWARD-LOOKING
  STATEMENTS</a></font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:6.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.5pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>
  </td>
 </tr>
 <tr>
  <td width="568" valign="top" style="padding:0pt .7pt 0pt 0pt;width:425.9pt;">
  <p style="margin:6.0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="a05-22463_1s8.htm#IncorporationOfCertainDocumentsBy_215212" title="Click to goto ">INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</a></font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:6.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.5pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>
  </td>
 </tr>
 <tr>
  <td width="568" valign="top" style="padding:0pt .7pt 0pt 0pt;width:425.9pt;">
  <p style="margin:6.0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="a05-22463_1s8.htm#CompanyOverview_212746" title="Click to goto ">COMPANY
  OVERVIEW</a></font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:6.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
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  OF COMMON STOCK</a></font></p>
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  DISTRIBUTION</a></font></p>
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  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="RiskFactors_211844"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">RISK FACTORS</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Prospective
purchasers of the Common Stock should consider carefully the following risk
factors relating to the business of the Company, together with the information
and financial data set forth elsewhere in this Prospectus or incorporated herein
by reference, prior to making an investment decision. This Prospectus contains
forward-looking statements within the meaning of Section&nbsp;27A of the
Securities Act and Section&nbsp;21E of the Exchange Act. Such statements are
indicated by words or phrases such as &#147;anticipate,&#148; &#147;estimate,&#148; &#147;project,&#148; &#147;management
believes,&#148; &#147;we believe&#148; and similar words or phrases. Such statements are based
on current expectations and are subject to risks, uncertainties and
assumptions. Certain of these risks are described below. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those anticipated,
estimated or projected.</font></i></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="RisksRelatedToOurOperations_211859"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Risks Related to Our Operations</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="WeHaveAHistoryOfNetLossesAndMayIn_211901"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
have a history of net losses and may incur additional losses in the future.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have a history of net
losses. In order for us to achieve and maintain consistent profitability from
our operations, we must continue to achieve product revenue at or above current
levels. We may increase our operating expenses as we attempt to expand our
product lines and acquire other businesses and products. As a result, we may
need to increase our revenues significantly to achieve sustainable
profitability. We cannot assure you that we will be able to obtain sustainable
profitability. Any such failure could have a material adverse effect on the
market price of our Common Stock and our business, financial condition and
results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="OurBusinessPlanReliesOnCertainAss_211904"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
business plan relies on certain assumptions for the market for our products
which, if incorrect, may adversely affect our profitability.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We believe that
various demographics and industry-specific trends will help drive growth
in the orthopedic, orthotic, prosthetic and skincare markets, including:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 20.0pt;text-indent:0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160; an aging
population with broad medical coverage, increased disposable income and longer
life &#160;&#160;&#160;&#160;&#160;&#160; expectancy;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>a
growing emphasis on physical fitness, leisure sports and conditioning, which
will continue to lead to increased injuries; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>increasing
awareness and use of non-invasive devices for prevention, treatment and
rehabilitation purposes.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These demographics and
trends are uncertain. The projected demand for our products could materially
differ from actual demand if our assumptions regarding these factors prove to
be incorrect or do not materialize, or if alternative treatments to those
offered by our products gain widespread acceptance.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="ThereAreSignificantRisksAssociate_211929"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">There
are significant risks associated with our strategy of acquiring and integrating
businesses.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A key element of
our strategy is the acquisition of businesses and assets that will complement
our current business, increase size, expand our geographic scope of operations
and otherwise offer growth opportunities. We may not be able to successfully
identify attractive acquisition opportunities, obtain financing for
acquisitions, make acquisitions on satisfactory terms, or successfully acquire
and/or integrate identified targets. Additionally, competition for acquisition
opportunities in our industry may escalate, thereby increasing the costs to us
of completing acquisitions or cause us to refrain from making acquisitions. Our
ability to implement our acquisition strategy is also subject to other risks
and costs, including:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>loss
of key employees, customers or suppliers of acquired businesses;</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>diversion
of management&#146;s time and attention from our core businesses;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>adverse
effects on existing business relationships with suppliers and customers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>our
ability to realize operating efficiencies, synergies, or other benefits
expected from an acquisition;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>risks
associated with entering markets in which we have limited or no experience; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>assumption
of contingent or undisclosed liabilities of acquisition targets.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, in connection with our recent acquisition
of Silipos, we face the risk of incurring potential liabilities of Silipos
which may not be covered by the limited indemnification in the Silipos purchase
agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The above risks could have
a material adverse effect on the market price of our Common Stock and our business,
financial condition and results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="WeMayFaceDifficultiesIntegratingT_212022"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
may face difficulties integrating the operations of Silipos.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We recently
completed the acquisition of Silipos, our largest acquisition to date. Our
ability to integrate the operations of Silipos is subject to various risks,
including:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>failure
to effectively integrate the two companies&#146; sales and marketing teams;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>potential
incompatibility of the information technology systems of the companies, which
could cause internal reporting problems; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>loss
of key personnel.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any of these risks were
to materialize in the future, we may not be able to realize the operating
efficiencies, synergies or other benefits expected from this acquisition. Our
failure to successfully integrate the operations of Silipos in a timely manner
without incurring unexpected costs could have a material adverse effect on the
market price of our Common Stock, business, financial condition and results of
operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="WeMayNotBeAbleToAdequatelyManageO_212048"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
may not be able to adequately manage our growth.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have expanded, and are
seeking to continue to expand, our business. This growth has placed significant
demands on our management, administrative, operating and financial resources.
The continued growth of our customer base, the types of products offered and
the geographic markets served can be expected to continue to place a
significant strain on our resources. Personnel qualified in the production and
marketing of our products are difficult to find and hire, and enhancements of
information technology systems to support growth are difficult to implement.
Our future performance and profitability will depend in large part on our
ability to attract and retain additional management and other key personnel. In
addition, although we have recently implemented a new information technology
platform, we cannot assure you that the new system will be effective in
accommodating our growing accounting, financial and information needs. Any
failure to adequately manage our growth could have a material adverse effect on
the market price of our Common Stock and our business, financial condition and
results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="AWriteoffOfIntangibleAssetsWouldA_212059"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">A
write-off of intangible assets would adversely affect our results of
operations.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our total assets include
substantial intangible assets, including goodwill acquired in connection with
the acquisitions of Benefoot, Bi-Op and Silipos representing the excess
of cost over the fair value of the identifiable assets acquired. We expect to
incur additional goodwill in connection with other acquisitions we make in the
future. We evaluate on a regular basis whether events and circumstances have
occurred </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">that
indicate that all or a portion of the carrying amount of the goodwill or other
intangible assets may no longer be recoverable, in which case a charge to
earnings would become necessary. Any determination requiring the write-off
of a significant portion of unamortized intangible assets could have a material
adverse effect on the market price of our Common Stock, and our business,
financial condition and our results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="OurBusinessIsHighlyCompetitive_If_212102"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
business is highly competitive. If we fail to compete successfully, our sales
and operating results may be negatively affected and we may not achieve future
growth.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The orthopedic, orthotic, prosthetic and skincare
markets are highly competitive. Certain of our competitors in these markets
have more resources and experience as well as more recognizable trademarks for
products similar to those sold by us. In addition, the market for orthopedic
devices and related products is characterized by new product development and
corresponding obsolescence of existing products. Our competitors may develop
new techniques, therapeutic procedures or alternative products that are more
effective than our current technology or products or that render our technology
or products obsolete or uncompetitive, which could cause a decrease in orders
for our custom orthotic products. Such decreases could have a material adverse
effect on the market price of our Common Stock, and our business, financial
condition and results of operations.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may not be able to develop successful new products
or enhance existing products, obtain regulatory clearances and approval of such
products, market such products in a commercially viable manner or gain market
acceptance for such products. Failure to develop, license or market new
products and product enhancements could materially and adversely affect our
competitive position, which could cause a significant decline in our sales and
profitability.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We expect that the level
of competition faced by us will increase in the future. Some competitors have
substantially greater financial, marketing, research and technical resources
than us. There can be no assurance that we will be able to continue to compete
successfully in the orthopedic, orthotic, prosthetic and skincare markets. Any
such failure could have a material adverse effect on the market price of our
Common Stock and our business, financial condition, and results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="WeMayNotBeAbleToRaiseAdequateFina_212115"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
may not be able to raise adequate financing to fund our operations and growth
prospects.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our acquisition and
product expansion programs, debt servicing requirements and existing operations
will require substantial capital resources. Currently, we do not have a working
capital facility or revolving line of credit with a financial institution for
additional borrowings. Accordingly, we cannot assure you that we will be able
to generate sufficient operating cash flow or obtain sufficient additional
financing to meet these requirements. If we do not have adequate resources and
cannot obtain additional capital on terms acceptable to us or at all, we may be
required to reduce operating costs by altering and delaying our business plan
or otherwise radically altering our business practices. Failure to meet our
future capital requirements could have a material adverse effect on the market
price of our Common Stock and our business, financial condition and results of
operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="WeMayBeAdverselyAffectedByLegalAc_212124"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
may be adversely affected by legal actions or proceedings.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as set forth below, neither we nor any of our
subsidiaries are currently a party to any legal action or proceeding which we
believe could have a material adverse effect on the market price of our Common
Stock and our business, financial condition or results of operations.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On April&nbsp;21, 2005, Thermo-Ply,&nbsp;Inc., a
Florida corporation, filed an action in the United States District Court for
the Middle District of Florida (Tampa Division) against Silipos and four other
defendants. The action asserts a claim for alleged infringement of U.S. Patent No.&nbsp;6,231,617.
Although not specifically identified by the claim, we believe that the claim,
insofar as it relates to us, may be directed </font></p>


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<p style="margin:0pt 0pt 6.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">towards the Explorer Gel
Liners manufactured, distributed and sold by Silipos. We are currently
investigating the validity of this claim. Should the plaintiff be successful in
pressing this claim, Silipos could be enjoined from making, using or selling
the accused products and could also be assessed damages for the alleged
infringement, which damages could be increased up to three times in the event
the infringement is found to be willful, together with attorney fees and
certain costs.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We could become subject to certain claims or actions
brought by River Biomechanics (&#147;River&#148;) and its principal, a former sales agent
and distributor for our foot orthotic devices sold in Canada. These claims may
include allegations relating to prior negotiations by us to acquire River, our
hiring of certain former employees of River and use of certain confidential
information. While we have received written correspondence from River and its
principal threatening to institute litigation and seek damages for
$5.0&nbsp;million, no action has been brought to date. We would expect to
vigorously defend against any claims brought by River and its principal. We
also believe that we have potential causes of action against River and its
principal. While we do not believe that any such claims would have a material
adverse effect on our business, financial condition or results of operations we
have and could continue to experience a decline in sales to our Canadian
customers, which we expect to be offset to some extent by a reduction in our
expenses, as a result of the change in our relationship with River.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, in connection with our acquisition of
Silipos, we could become subject to certain claims or actions brought by Poly-Gel,
L.L.C. (&#147;Poly-Gel&#148;), Silipos&#146; former supplier of mineral oil based gels,
although no such claims have been brought to date. These claims may arise, for
example, out of the supply agreement between Silipos and Poly-Gel dated August&nbsp;20,
1999, the manufacture, marketing or sale of products made from gel not
purchased from Poly-Gel, alleged misappropriation of trade secrets or
other confidential information (including gel formulations) of Poly-Gel,
as well as any other alleged violations of the supply agreement (the &#147;Potential
Poly-Gel Claims&#148;). For any of these potential claims, SSL International
plc (&#147;SSL&#148;), the seller of Silipos, has agreed to indemnify us for losses up to
$2.0&nbsp;million, after which we would be liable for any such claims.
Furthermore, we have assumed responsibility for the first $150,000 of any other
liability in connection with our acquisition of Silipos, and SSL&#146;s maximum
liability for total indemnification related to our acquisition of Silipos is
between $5,000,000 and $7,000,000. Thus, if the total amount of all claims
arising from the acquisition exceed this maximum, whether or not related to
Poly-Gel, we would be liable for amounts in excess of the maximum. For claims
arising out of conduct that occurs after the closing of the Silipos transaction
on September&nbsp;30, 2004, we have agreed to indemnify SSL against losses. We
would expect to vigorously defend against any claims brought by Poly-Gel
or any other third party. However, if such claims were brought, we may not
ultimately prevail.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, in the normal course of business, we may
be subject to claims and litigations in the areas of general liability. We may
also be subject to claims, litigations or other liabilities as a result of
acquisitions we have completed. The results of legal proceedings are difficult
to predict and we cannot provide you with any assurance that an action or
proceeding will not be commenced against us, or that we will prevail in any such
action or proceeding.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">An unfavorable resolution
of any legal action or proceeding could both materially and adversely affect
the market price of our Common Stock and our business, results of operations,
liquidity or financial condition.</font></p>


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<div>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="OurExistingPurchasingArrangements_212514"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
existing purchasing arrangements may be adversely affected if we are unable to
maintain good relations with our suppliers.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our ability to sustain our
gross margins has been and will continue to be dependent, in part, on our
ability to maintain satisfactory terms with the third-party manufacturers
of certain raw materials. These terms may be adversely impacted by changes in
our suppliers&#146; strategies or changes in our relationship with our suppliers. We
cannot assure you that we will continue to maintain satisfactory terms with our
suppliers. Our inability to maintain such terms, the loss of any of our key
suppliers or any other interruption or delay in the supply of our required
materials or our inability to obtain these materials at acceptable prices or within
a reasonable amount of time could impair our ability to meet scheduled product
deliveries to our customers and could hurt our reputation and cause customers
to cancel orders.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="WeMayNotBeSuccessfulInManufacturi_212530"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
may not be successful in manufacturing the raw material mineral oil based gels
we use in our gel-based products.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><a name="WeDidNotRenewSiliposSupplyAgreeme_212525"></a><font size="2" face="Times New Roman" style="font-size:10.0pt;">We did not renew Silipos&#146;
supply agreement with Poly-Gel, which was the supplier of mineral oil based
gels used in our gel-based products, based on our evaluation of the risks of
relying on a single exclusive supplier and our belief that we could produce a
satisfactory mineral oil based gel of our own at similar or at lower cost. We
have only recently begun to manufacture such gels on our own and we do not have
prior experience in manufacturing gel on a commercial basis. We may not be able
to produce the gels in a consistent quality or in sufficient quantities to meet
the requirement of our gel-based products. Our failure to produce sufficient
quantities of high quality gels could hurt our reputation and cause customers
to cancel orders for our gel-based products or could prevent us from continuing
production of our gel-based products. For the nine months ended September&nbsp;30,
2005, gel-based products accounted for approximately 44% of our revenues.
A large portion of Silipos&#146; products utilize gels previously obtained from Poly-Gel.
If we are unsuccessful in manufacturing the gels ourselves and we are unable to
procure such gels from other suppliers on favorable terms or at all, our
business, financial condition and results of operations and the market price of
our Common Stock would be both materially and adversely affected.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="WeRelyHeavilyOnOurRelationshipsWi_212541"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
rely heavily on our relationships with healthcare practitioners, agents and
distributors for marketing our products, and our failure to maintain these
relationships could adversely affect our business.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The sales of our products depend significantly on the
prescription or recommendation of such products by podiatrists, orthopedists,
orthopedic surgeons, dermatologists, cosmetic and plastic surgeons,
occupational and physical rehabilitation professionals, prosthetists,
orthotists and other healthcare professionals. Failure of our products to
retain the support of these surgeons and other specialists, or the failure of
our products to secure and retain similar support from leading surgeons and
other specialists, could have a material adverse effect on the market price of
our Common Stock and our business, financial condition and results of
operation.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our marketing success also
depends largely upon arrangements with agents and distributors. Our success
depends upon our agents&#146; and distributors&#146; sales and service expertise and
their relationships with the customers in the marketplace. Our failure to
maintain relationships with our agents and distributors for marketing our
products could have an adverse effect on the market price of our Common Stock
and our business, financial condition and results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="IfOurMedicalSpecialistConsultants_212556"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
our medical specialist consultants and practitioners do not continue their
relationships with us, we may be unable to develop, design and test new medical
devices, enhance our existing medical devices or educate the public about our
products and services.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have relationships with
medical specialists who provide professional consultative services to us in
their areas of specialization. The consultants test and evaluate our products,
speak for us at symposiums and professional meetings, disseminate information
and generally participate in the development of our </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">products
and services. We also rely on practitioners in various parts of the country to
act as field evaluators of our products. If these arrangements terminate, our
ability to develop, design and test new medical devices or enhancements to our
existing medical devices, and our ability to operate successfully, could be
materially and adversely affected. We cannot assure you that we will be
successful in maintaining or renewing our relationships with these medical
specialists and practitioners.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="TheNatureOfOurBusinessCouldSubjec_212606"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
nature of our business could subject us to potential product liability and
other claims.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The sale of orthotic and
prosthetic products and other biomechanical devices as well as skincare
products entails the potential risk of physical injury to patients and other
end users and an inherent risk of product liability, lawsuits and product
recalls. We currently maintain product liability insurance with coverage limits
of $10&nbsp;million per occurrence and an annual aggregate maximum of
$10&nbsp;million subject to a deductible of $25,000. However, we cannot assure
you that this coverage would be sufficient to cover the payment of any
potential claim. In addition, we cannot assure you that this or any other
insurance coverage will continue to be available or, if available, will be
obtainable at a reasonable cost. Our existing product liability insurance
coverage may be inadequate to protect us from any liabilities we might incur,
and we will continue to be exposed to the risk that our claims may be excluded
and that our insurers may become insolvent. A product liability claim or series
of claims brought against us for uninsured liabilities or liabilities in excess
of our insurance coverage could have a material adverse effect on the market
price of our Common Stock, business, financial condition and results of
operations. In addition, as a result of a product liability claim, our
reputation could be harmed and we may have to recall some of our products,
which could result in significant costs to us and have a material adverse
effect on the market price of our Common Stock and our business, financial
condition and results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="HealthCareRegulationsOrHealthCare_212609"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Health
care regulations or health care reform initiatives could both materially and
adversely affect the market price of our Common Stock and our business,
financial condition and results of operations.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are subject to
governmental regulation and supervision in the United States&#151;at the federal and
state levels&#151;and abroad. These regulations include FDA regulations and those
regarding Medicare, Medicaid and physician self-referrals. These regulations
are far-reaching, and we may be required to alter one or more of our practices
to be in compliance with these laws. For example, we may be required to obtain
regulatory approvals and otherwise comply with regulations regarding safety,
quality and efficacy standards. If we fail to obtain such approvals and
otherwise comply with applicable regulatory requirements that could result in
government authorities taking punitive actions against us, including, among
other things, imposing fines and penalties on us or preventing us from
manufacturing or selling our products. Health care fraud and abuse regulations
are complex, and even minor, inadvertent irregularities in submissions can
potentially give rise to claims that the statute has been violated. Any violations
of these laws could result in a material adverse effect on the market price of
our Common Stock and our business, financial condition and results of
operations. We cannot assure you that these laws and regulations will not
change or be interpreted in the future in a manner which restricts or adversely
affects our business activities or relationships with providers of orthotic and
biomechanical products.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="ChangesInGovernmentAndOtherThirdp_212625"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Changes
in government and other third-party payor reimbursement levels could
adversely affect our revenues and profitability.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our products are sold by us through our network of
national, regional, independent and international distributors, hospitals,
doctors and other healthcare providers, many of whom are reimbursed for the
healthcare services provided to their patients by third-party payors,
such as government programs, including Medicare and Medicaid, private insurance
plans and managed care programs. Many of these programs set maximum
reimbursement levels for certain of the products sold by us in the United
States. We may be unable to sell our products through our distribution channels
on a profitable basis if third-party </font></p>


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<p style="margin:0pt 0pt 6.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">payors deny coverage or
reduce their current levels of reimbursement, or if our costs of production
increase faster than increases in reimbursement levels. The percentage of our
sales dependent on Medicare or other insurance programs may increase as the
portion of the United States population over age 65 continues to grow, making
us more vulnerable to reimbursement level reductions by these organizations.
Reduced government reimbursement levels could result in reduced private payor
reimbursement levels because of indexing of Medicare fee schedules by certain
third-party payors. Furthermore, the healthcare industry is experiencing a
trend toward cost containment as government and private insurers seek to
contain healthcare costs by imposing lower reimbursement rates and negotiating
reduced contract rates with service providers.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Outside the United States,
reimbursement systems vary significantly by country. Many foreign markets have
government-managed health care systems that govern reimbursement for new
devices and procedures. The ability of hospitals supported by such systems to
purchase our products is dependent, in part, upon public budgetary constraints.
Canada and some European countries, for example, have tightened reimbursement
rates. If adequate levels of reimbursement from third-party payors
outside of the United States are not obtained, international sales of our
products may decline, which could adversely affect our net sales and could have
a material adverse effect on the market price of our Common Stock and our
business, financial condition and results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="OurBusinessIsSubjectToSubstantial_212634"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
business is subject to substantial government regulation relating to medical
products that could have a material adverse effect on our business.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Government regulation in the United States and other
countries is a significant factor affecting the research, development,
formulation, manufacture and marketing of our products. In the United States,
the FDA has broad authority to regulate the design, manufacture, formulation,
marketing and sale of medical devices, skincare, and other medical products,
and the Federal Trade Commission (&#147;FTC&#148;) has broad authority over product
advertising. Overseas, these activities are subject to foreign governmental
regulation, which is in many respects similar to regulation in the United
States, but which vary from country to country. United States and foreign
regulation continues to evolve, which could result in additional burdens on our
operations. If we fail to comply with applicable regulations we may be subject
to, among other things, fines, suspension or withdrawal of regulatory
approvals, product recalls, operating restrictions and criminal prosecution.
Additionally, the cost of maintaining personnel and systems necessary to comply
with applicable regulations is substantial and increasing.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Some of our products may require or will require
regulatory approval prior to being marketed. The process of obtaining these
approvals can be lengthy and expensive. We may not be able to obtain or
maintain necessary approvals for testing or marketing our products. Moreover,
regulatory approvals, if granted, may include significant limitations on the
indicated uses for which our products may be marketed or other restrictions or
requirements that reduce the value to us of the products. Regulatory
authorities may also withdraw product approvals if we fail to comply with
regulatory standards or if any problems related to our products develop
following initial marketing. We are also subject to strict regulation with
respect to our manufacturing operations. This regulation includes testing,
control and documentation requirements, and compliance with current good
manufacturing practices is monitored through inspections by regulatory
authorities.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our profitability depends,
in part, upon our and our distributors&#146; ability to obtain and maintain all
necessary certificates, permits, approvals and clearances from United States
and foreign regulatory authorities and to operate in compliance with applicable
regulations. Delays in the receipt of, or failure to receive necessary
approvals, the loss of previously obtained approvals, or failure to comply with
existing or future regulatory requirements could have a material adverse effect
on the market price of our Common Stock and our business, financial condition
and results of operations.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="ModificationsToOurMarketedDevices_212644"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Modifications
to our marketed devices may require FDA regulatory clearances or approvals and
may require us to cease marketing or recall the modified devices until such
clearances or approvals are obtained.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">When required, the
products we market in the United States have been subjected to Pre-market
Notification requirements under Section&nbsp;510(k)&nbsp;of the Federal Food
Drug&nbsp;&amp; Cosmetics Act or were exempt from the 510(k)&nbsp;Pre-market
Notification process. We have modified some of our products and product
labeling since obtaining 510(k)&nbsp;clearance. If the FDA requires us to
submit a new 510(k)&nbsp;Pre-market Notification for modifications to our
existing products, we may be the subject of enforcement actions by the FDA and
be required to stop marketing the products while the FDA reviews the 510(k)&nbsp;Pre-market
Notification. If the FDA requires us to go through a lengthier, more rigorous
examination than we expect, our product introductions or modifications could be
delayed or canceled, which could cause our sales to decline or otherwise
adversely impact our growth. In addition, the FDA may determine that future
products will be subject to the more costly, lengthy and uncertain Pre-market
Approval, or &#147;PMA,&#148; process. Products that are approved through the PMA process
generally need FDA approval before they may be modified.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="OurProductsMayBeSubjectToProductR_212652"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
products may be subject to product recalls even after receiving clearance or
approval, which could harm our reputation and our business.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The FDA and foreign
regulatory authorities have the authority to request and, in some cases,
require the recall of products in the event of material deficiencies, design
defects or manufacturing defects. A government-mandated or voluntary
recall by us could occur as a result of component failures, manufacturing
errors, design defects or any other incidents related to our medical devices,
including, but not limited to, adverse event recalls, cease and desist
communications and any other product liability issues related to our medical
devices. Any product recall would divert managerial and financial resources and
could harm our reputation with customers and our business.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="IfWeFailToComplyWithTheFdasQualit_212659"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">If we
fail to comply with the FDA&#146;s Quality System Regulation, our manufacturing
could be delayed, and our product sales and profitability could suffer.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our manufacturing
processes are required to comply with the FDA&#146;s Quality System Regulation,
which covers the procedures concerning (and documentation of) the design,
testing, production processes, controls, quality assurance, labeling,
packaging, storage and shipping of our devices. We also are subject to state
requirements and licenses applicable to manufacturers of medical devices. In
addition, we must engage in extensive recordkeeping and reporting and must make
available our manufacturing facilities and records for periodic unscheduled
inspections by governmental agencies, including the FDA, state authorities and
comparable agencies in other countries. Moreover, failure to pass a Quality
System Regulation inspection or to comply with these and other applicable
regulatory requirements could result in disruption of our operations and
manufacturing delays. Failure to take adequate corrective action could result
in, among other things, significant fines, suspension of approvals, seizures or
recalls of products, operating restrictions and criminal prosecutions. We
cannot assure you that the FDA or other governmental authorities would agree
with our interpretation of applicable regulatory requirements or that we have
in all instances fully complied with all applicable requirements. Any failure
to comply with applicable requirements could adversely affect our product sales
and profitability.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="LossOfTheServicesOfKeyManagementP_212707"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Loss
of the services of key management personnel could adversely affect our
business.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our operations are
dependent upon the skill, experience and performance of a relatively small
group of key management and technical personnel, including our Chairman and
executive officers. The unexpected loss of the services of one or more of key
management and technical personnel could have a </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">material
adverse effect on the market price of our Common Stock and our business,
financial condition and results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="OurBusinessOperatingResultsAndFin_212710"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
business, operating results and financial condition could be adversely affected
by litigation regarding our patents or other intellectual property rights.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The orthopedic,
orthotic, prosthetics and skincare product industries have experienced
extensive litigation regarding patents and other intellectual property rights,
and companies in this industry have used intellectual property litigation in an
attempt to gain a competitive advantage. Some of our products are presently,
and our products generally in the future may become, subject to patent
infringement claims (for a discussion of a current legal proceeding that we
believe concerns our Explorer Gel Liner line of products, or litigation or
interference proceedings declared by the United States Patent and Trademark
Office, or USPTO, or the foreign equivalents thereto to determine the priority
of inventions, by competitors or other companies. The defense and prosecution
of intellectual property suits, USPTO interference proceedings or the foreign
equivalents thereto and related legal and administrative proceedings are both
costly and time consuming. An adverse determination in litigation or
interference proceedings to which we may become a party could:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>subject
us to significant liabilities to third parties;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>require
disputed rights to be licensed from a third-party for royalties that may
be substantial;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>require
us to cease manufacturing, using or selling such products or technology; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>result
in invalidation or loss of our patent rights.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any one of these outcomes could have a material
adverse effect on the market price of our Common Stock and our business,
financial condition and results of operations. Furthermore, we may not be able
to obtain necessary licenses on satisfactory terms, if at all. Even if we are
able to enter into licensing arrangements, costs associated with these
transactions may be substantial and could include the long-term payment of
royalties. Accordingly, adverse determinations in a judicial or administrative
proceeding or our failure to obtain necessary licenses could prevent us from
manufacturing and selling our products or from using certain processes to make
such products, which would have a material adverse effect on the market price
of our Common Stock and our business, operating results and financial
condition. Moreover, even if we are successful in such litigation, the expense
of defending such claims could be material.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, we may in the future need to litigate to enforce
our patents, to protect our trade secrets or know-how or to determine the
enforceability, scope and validity of the proprietary rights of others. Such
enforcement of our intellectual property rights could involve counterclaims
against us. Any future litigation or interference proceedings may result in
substantial expense to us and significant diversion of effort by our technical
and management personnel.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Intellectual property litigation relating to our
products or technology could also cause our customers or potential customers to
defer or limit their purchases of such products or technology, or cause
healthcare professionals, agents and distributors to cease or lessen their
support and marketing of our products.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, in connection
with our acquisition of Silipos, we may be subject to the Potential Poly-Gel
Claims discussed under &#147;Risk Factors&#151;We may be adversely affected by legal
actions or proceedings,&#148; including intellectual property claims, brought by
Poly-Gel. For any of these potential claims, SSL has generally agreed to
indemnify us for losses up to $2.0&nbsp;million, after which we would be liable
for any such claims. For claims arising out of conduct that occurs after the
closing of the Silipos transaction on September&nbsp;30, 2004, we have agreed
to indemnify SSL against losses. We would expect to vigorously defend against
any claims brought by Poly-Gel. However, if such claims were brought, we may
not ultimately prevail.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:0pt;"><a name="WeMayNotBeAbleToMaintainTheConfid_212726"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
may not be able to maintain the confidentiality, or assure the protection, of
our proprietary technology.</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We hold a variety of patents, trademarks and
copyrights in several countries, including the United States, including
approximately 35 patents and patent applications in the U.S. and certain
foreign jurisdictions and a number of trademarks for technologies and brands
related to our product offerings. The ownership of a patent or an interest in a
patent does not always provide significant protection, and the patents and
patent applications in which we have an interest may be challenged as to their
validity or enforceability. Others may independently develop similar
technologies or design around the patented aspects of our technology.
Challenges may result in potentially significant harm to our business. We are
also dependent upon a variety of methods and technologies that we regard as
proprietary trade secrets. In addition, we have (i)&nbsp;a non exclusive, paid
up (except for certain administrative fees) license with Applied Elastomerics,
Incorporated (the &#147;AEI License&#148;) dated as of November&nbsp;30, 2001, as
amended, to manufacture and sell certain products using mineral oil based gels
under certain patents, during the life of such patents, and (ii)&nbsp;a license
with Gerald Zook (the &#147;Zook License&#148;), effective as of January&nbsp;1, 1997, to
manufacture and sell certain products using mineral oil based gels under
certain patents and know how, during the life of such patents, in exchange for
sales based royalty payments, that is exclusive as to certain products but is
non exclusive as to others. We also have exclusive licenses to three types of
orthotic devices which are patented in the United States and several foreign
countries. We believe our trademarks and tradenames, including Langer</font><font face="Symbol">&#212;</font>,
Sporthotics<font face="Symbol">&#212;</font>, PPT<font face="Symbol">&#212;</font>, Silipos<font face="Symbol">&#212;</font>,
Explorer Gel Liner<font face="Symbol">&#212;</font>, Siloliner<font face="Symbol">&#212;</font>,
and Silopad<font face="Symbol">&#212;</font>, contribute significantly to brand recognition
for our products, and the inability to use one or more of these names could
have a material adverse affect on our business. For the nine months ended September&nbsp;30,
2005, revenues generated by the products incorporating the technology licensed
under the AEI License accounted for approximately 42.6% of our revenues.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We rely on a combination of trade secret, copyright,
patent, trademark, unfair competition and other intellectual property laws as
well as contractual agreements to protect our rights to such intellectual
property. Due to the difficulty of monitoring unauthorized use of and access to
intellectual property, however, such measures may not provide adequate
protection. There can be no assurance that courts will always uphold our
intellectual property rights, or enforce the contractual arrangements that we
have entered into to protect our proprietary technology and trade secrets.</font></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Further, although
we seek to protect our trade secrets, know-how and other unpatented proprietary
technology, in part, with confidentiality agreements with certain of our
employees and consultants, we cannot assure you that:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>these
confidentiality agreements will not be breached;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>we
will have adequate remedies for any breach;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>we
will not be required to disclose such information to the FDA or other
governmental agency in order for us to have the right to market a product; or</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>trade
secrets, know-how and other unpatented proprietary technology will not otherwise
become known to or independently developed by our competitors.</p>


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<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any finding of unenforceability, invalidity, non-infringement
or misappropriation of our intellectual property could have a material adverse
effect on the market price of our Common Stock and our business, financial
condition and results of operations. In addition, if we bring or become subject
to litigation to defend against claimed infringement of our rights or of the
rights of others or to determine the scope and validity of our intellectual
property rights, such litigation could result in substantial costs and
diversion of our resources. Unfavorable results in such litigation could also
result in the loss or compromise of our proprietary rights, subject us to
significant liabilities, require us to seek licenses from third parties, or
prevent us from selling our products, which could have a material adverse
effect on the market price of our Common Stock, and our business, financial
condition and results of operations.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
addition, our licenses, including the AEI License and the Zook License, could
be terminated under a variety of circumstances including for material breach of
the license agreements or in the event of the bankruptcy or insolvency of the
licensor. Any such termination could have a material adverse effect on the
market price of our Common Stock and our business, financial condition and
results of operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;"><a name="APortionOfOurRevenuesAndExpenditu_214414"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">A portion
of our revenues and expenditures is subject to exchange rate fluctuations that
could adversely affect our reported results of operations.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">While a
majority of our business is denominated in United States dollars, we maintain
operations in foreign countries, primarily the United Kingdom and Canada, that
require payments in the local currency and payments received from customers for
goods sold in these countries are typically in the local currency.
Consequently, fluctuations in the rate of exchange between the United States
dollar and certain other currencies may affect our results of operations and
period-to-period comparisons of our operating results. For example, the value
of the U.S dollar has fallen over the last year relative to the British pound
and the Canadian dollar (which are the principal foreign currencies material to
our business) causing an increase in our reported revenues when we convert the
higher valued foreign currencies into U.S.&nbsp;dollars. If the value of the
U.S. dollar were to increase in relation to those currencies in the future,
there could be a negative effect on the value of our sales in those markets
when we convert amounts to dollars when we prepare our financial statements. We
do not currently engage in hedging or similar transactions to reduce these
risks.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="WeMayBeLiableForContaminationOrOt_212717"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
may be liable for contamination or other harm caused by hazardous materials
that we use.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our research and
development and manufacturing processes involve the use of hazardous materials.
We are subject to federal, state and local regulation governing the use,
manufacture, handling, storage and disposal of hazardous materials or waste. We
cannot completely eliminate the risk of contamination or injury resulting from
hazardous materials or waste, and we may incur liability as a result of any
contamination or injury. In addition, under some environmental laws and
regulations, we could also be held responsible for all of the costs relating to
any contamination at our past or present facilities and at third-party
waste disposal sites even if such contamination was not caused by us. We may
incur significant expenses in the future relating to any failure to comply with
environmental laws. Any such future expenses or liability could have a
significant negative impact on our business, financial condition and results of
operations.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="OurQuarterlyOperatingResultsAreSu_212721"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
quarterly operating results are subject to fluctuations.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our revenue and operating results have fluctuated and
may continue to fluctuate from quarter to quarter due to seasonal factors and
for other reasons. Revenues derived from our sales of orthotic devices have
historically been significantly higher in North America in the warmer months of
the year, while our sales of orthotic devices in the United Kingdom have not
historically experienced seasonality. We believe that this seasonality in North
America results from the portion of our orthotics sales comprised of custom
sandals which tend to be higher in the spring and summer months. Our experience
has also been that physical activities in general tend to increase in warmer
weather and that many patients of our customers </font></p>


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<p style="margin:0pt 0pt 6.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">in the healthcare
profession tend to defer healthcare purchases until the spring months.
Similarly, Silipos&#146; business is also subject to some seasonality. Other factors
which can result in quarterly variations include the timing and amount of new
business generated by us, the timing of new product introductions, our revenue
mix, acquisitions, the timing of additional selling and general and
administrative expenses to support the anticipated growth and development of
new business units and the competitive and fluctuating economic conditions in
the orthopedic industry.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Quarter-to-quarter
comparisons of our operating results are not necessarily meaningful and should
not be relied upon as indications of likely future performance or annual
operating results. Reductions in revenues or net income between quarters could
result in a decrease in the market price of our Common Stock.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="WeMayBeUnableToRealizeTheBenefits_212725"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
may be unable to realize the benefits of our net operating loss (&#147;NOL&#148;)
carryforwards.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOLs may be carried forward to offset federal and
state taxable income in future years and eliminate income taxes otherwise
payable on such taxable income, subject to certain adjustments. Based on
current federal corporate income tax rates, our NOL could provide a benefit to
us, if fully utilized, of significant future tax savings. However, our ability
to use these tax benefits in future years will depend upon the amount of our
otherwise taxable income. If we do not have sufficient taxable income in future
years to use the tax benefits before they expire, we will lose the benefit of
these NOL carryforwards permanently. Additionally, future utilization of net
operating losses will be limited under existing tax law due to the change in
control of Langer in 2001 and may be further limited as a result of this
offering.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The amount of NOL
carryforwards that we have claimed has not been audited or otherwise validated
by the U.S. Internal Revenue Service (the &#147;IRS&#148;). The IRS could challenge our
calculation of the amount of our NOL or any deductions or losses included in
such calculation, and provisions of the Internal Revenue Code may limit our
ability to carry forward our NOL to offset taxable income in future years. If
the IRS were successful with respect to any challenge in respect of the amount
of our NOL, the potential tax benefit of the NOL carryforwards to us could be
substantially reduced.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;"><a name="TheRecentChangesInAccountingStand_213921"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
recent changes in accounting standards regarding stock option plans could limit
the desirability of granting stock options, which could harm our ability to
attract and retain employees, and could also negatively impact our results of
operations.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A recent change in
accounting standards is requiring all public companies to treat the fair value
of stock options granted to employees as an expense effective as of the
beginning of the first fiscal year beginning after June&nbsp;15, 2005. When
this change becomes mandatory, we and other companies will be required to
record a compensation expense equal to the fair value of each stock option
granted. Currently, we are generally not required to record compensation
expense in connection with stock option grants. When we are required to expense
the fair value of stock option grants, it may reduce the attractiveness to us
of granting stock options because of the additional expense associated with
these grants, which would negatively impact our reported results of operations.
For example, had we been required to expense stock option grants by applying
the measurement provisions of Statement of Financial Accounting Standards No.&nbsp;123,
&#147;Accounting for Stock-Based Compensation,&#148; our recorded net income for
the nine months ended September&nbsp;30, 2005 of approximately $423,000 would
have been reduced by approximately $517,000, to a net loss of approximately
$94,000 and our recorded net income for the year ended December&nbsp;31, 2004
of approximately $375,000 would have been reduced by approximately $521,000, to
a net loss of approximately $146,000 and our recorded net loss for the year
ended December&nbsp;31, 2003 of approximately $5,000 would have been increased
by approximately $147,000, to a net loss of approximately $152,000 and our net
loss for the year ended December&nbsp;31, 2002 of approximately $1,106,000
would have been increased by approximately $58,000, to a net loss of
approximately $1,164,000, net of compensation recognized from acceleration of
option, net of tax. Nevertheless, stock options are an important employee </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">recruitment
and retention tool, and we may not be able to attract and retain key personnel
if we reduce the scope of our employee stock option program. Accordingly, when
we are required to expense stock option grants, our future results of
operations will be negatively impacted, as could our willingness to use stock
options as an employee recruitment and retention tool.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="RisksRelatedToOurCommonStock_212741"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Risks Related to Our Common Stock</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;"><a name="OneStockholderHasTheAbilityToSign_213941"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">One
stockholder has the ability to significantly influence the election of our
directors and the outcome of corporate action requiring stockholder approval.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of December&nbsp;23, 2005, Warren&nbsp;B. Kanders,
our Chairman of the Board of Directors, in his capacity as sole manager and
voting member of Langer Partners, LLC and the sole stockholder of Kanders&nbsp;&amp;
Company,&nbsp;Inc., may be deemed to be the beneficial owner of 2,638,523
shares, or approximately 24.1% of our outstanding Common Stock.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of December&nbsp;23, 2005, current executive
officers and directors, including Mr.&nbsp;Kanders, beneficially own an
aggregate of 5,087,939 shares, or approximately 42.7% of our outstanding Common
Stock.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consequently, Mr.&nbsp;Kanders, acting alone or
together with our other officers and directors, has the ability to
significantly influence all matters requiring stockholder approval, including
the election of our directors and the outcome of corporate actions requiring
stockholder approval, such as a change in control. Mr.&nbsp;Kanders,
Andrew&nbsp;H. Meyers, our President, Chief Executive Officer and director, and
Gregory&nbsp;R. Nelson, our Board of Directors member, participated in the February&nbsp;2001
tender offer by which Langer Partners, LLC became our largest stockholder.
Except for Mr.&nbsp;Kanders, our entire current Board of Directors was
designated by Langer Partners,&nbsp;LLC in 2001 following the tender offer.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Langer Partners, LLC is
party to an agreement with Oracle Investment Management,&nbsp;Inc. (&#147;Oracle&#148;),
the beneficial owner of some of our outstanding 4% convertible subordinated
notes due August&nbsp;31, 2006. Pursuant to the agreement, Langer Partners
agreed not to, without the prior written consent of Oracle, sell, assign,
pledge or otherwise transfer any shares of our Common Stock owned by Langer
Partners until such time as Oracle sells or otherwise transfers one-third or
more of the 4% convertible subordinated notes held by it, or shares of Common
Stock received upon conversion of the notes. Oracle has not converted or
transferred any of the 4% convertible subordinated notes to date. Oracle is
considered to beneficially own 6.3% of our outstanding Common Stock. Langer
Partners further agreed with Oracle to vote all shares of Common Stock owned by
Langer Partners in favor of so many nominees of Oracle to our Board of
Directors as is equal, on a percentage basis, to the aggregate percentage of
our Common Stock owned by Oracle on a fully diluted basis. Under this
arrangement, we believe Oracle would be currently entitled to designate one
Board nominee pursuant to this right. However, Oracle has not to date nominated
a director.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;"><a name="ThePriceOfOurCommonStockHasBeenAn_213953"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
price of our Common Stock has been and is expected to continue to be volatile,
which could affect a stockholder&#146;s return on investment.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There has been significant
volatility in the stock market and in particular in the market price and
trading volume of securities of orthopedic and other health care companies,
which has often been unrelated to the performance of the companies. The market
price of our Common Stock has been subject to significant fluctuations, and we
expect it to continue to be subject to such fluctuations for the foreseeable
future. We believe the reasons for these fluctuations include, in addition to
general market volatility, the relatively thin level of trading in our stock,
and our relatively low public float. Therefore, variations in financial
results, announcements of material events, technological innovations or new
products by us or our competitors, our quarterly operating results, changes in
general conditions in the economy or the health care industry, other
developments affecting us or our competitors or general price </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and
volume fluctuations in the market are among the many factors that could cause
the market price of our Common Stock to fluctuate substantially.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="SharesOfOurCommonStockHaveBeenThi_212816"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shares
of our Common Stock have been thinly traded in the past.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although a trading market
for our Common Stock exists, the trading volume has not been significant and
there can be no assurance that an active trading market for our Common Stock
will develop or, if developed, be sustained in the future. As a result of the
thin trading market or &#147;float&#148; for our stock, the market price for our Common
Stock may fluctuate significantly more than the stock market as a whole.
Without a large float, our Common Stock is less liquid than the stock of
companies with broader public ownership and, as a result, the trading prices of
our Common Stock may be more volatile. In the absence of an active public
trading market, an investor may be unable to liquidate his investment in our
Common Stock. Trading of a relatively small volume of our Common Stock may have
a greater impact on the trading price for our stock than would be the case if
our public float were larger. We cannot predict the prices at which our Common
Stock will trade in the future.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;"><a name="WeMayIssueASubstantialAmountOfOur_214000"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
may issue a substantial amount of our Common Stock in the future, which could
cause dilution to new investors and otherwise adversely affect our stock price.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A key element of our
growth strategy is to make acquisitions. As part of our acquisition strategy,
we may issue additional shares of Common Stock as consideration for acquisitions.
These issuances could be significant. To the extent that we make acquisitions
and issue our shares of Common Stock as consideration, your equity interest in
us will be diluted. Any such issuance will also increase the number of
outstanding shares of Common Stock that will be eligible for sale in the
future. Persons receiving shares of our Common Stock in connection with these
acquisitions may be more likely to sell off their Common Stock than investors
purchasing in this offering, which may influence the price of our Common Stock.
In addition, the potential issuance of additional shares in connection with
anticipated acquisitions could lessen demand for our Common Stock and result in
a lower price than might otherwise be obtained. We may issue Common Stock in
the future for other purposes as well, including in connection with financings,
for compensation purposes, in connection with strategic transactions or for
other purposes.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;"><a name="WeHaveASignificantAmountOfConvert_214007"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
have a significant amount of convertible indebtedness outstanding and may issue
a substantial amount of our Common Stock in connection with these and other
outstanding securities and in connection with future acquisitions and our
growth plans; any such issuances of additional shares could adversely affect
our stock price.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On October&nbsp;31, 2001, we sold $14,589,000 of our
4% convertible subordinated notes due August&nbsp;31, 2006 in a private
placement. In June&nbsp;2005, $150,000 notes were converted into 25,000 shares
of common stock. The remaining notes are convertible at any time into approximately
2,406,500 shares of our Common Stock, at a conversion price of $6.00 per share,
subject to adjustment in certain circumstances. The conversion of our 4%
convertible subordinated notes could result in dilution in the value of the
shares of our outstanding stock and the voting power represented thereby. The
effect of the conversion of all of our outstanding 4% convertible subordinated
notes due August&nbsp;31, 2006 would be to increase outstanding shares and
dilute current shareholders by approximately 19.6% at December&nbsp;23, 2005.
In addition, the conversion price of our notes may be lowered under the
conversion price adjustment provisions of the notes in certain circumstances,
including if we issue Common Stock at a net price per share less than the conversion
price then in effect or if we issue rights, warrants or options entitling the
recipients to subscribe for or purchase shares of our Common Stock at a price
per share less than the conversion price (after taking into account any
consideration we received for such rights, warrants or options). A reduction in
the conversion price may result in the issuance of an additional number of
shares upon the conversion of our notes. We also have a significant number of
stock options and warrants outstanding.</font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We anticipate issuing
additional shares of our Common Stock and may also issue additional securities
convertible into or exercisable or exchangeable for Common Stock to finance
acquisitions or for other reasons in the future. The number of outstanding shares
of our Common Stock that will be eligible for sale in the future is, therefore,
likely to increase substantially. Persons receiving shares of our Common Stock
in connection with these acquisitions or financings may be more likely to sell
large quantities of their Common Stock, which may adversely affect the price of
our Common Stock. In addition, the potential issuance of additional shares in
connection with anticipated acquisitions could lessen demand for our Common
Stock and result in a lower price than would otherwise be obtained. If our
security holders sell substantial amounts of our Common Stock in the public
market following this offering, the market price of our Common Stock could
fall. These sales might make it more difficult for us to sell equity or equity-related
securities in the future at a time and price that we deem appropriate and may
require us to issue greater amounts of our Common Stock to finance
acquisitions. Additional shares sold to finance acquisitions and conversions,
exercises and exchanges of other securities for Common Stock may also dilute
our earnings per share.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;"><a name="OurCertificateOfIncorporationOurB_214013"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
certificate of incorporation, our bylaws and Delaware law contain provisions
that could discourage, delay or prevent a takeover attempt.</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are subject to the anti-takeover provisions of Section&nbsp;203
of the Delaware General Corporation Law. In general, Section&nbsp;203 prohibits
publicly-held Delaware corporations to which it applies from engaging in a &#147;business
combination&#148; (generally including mergers, consolidations and sales of 10% or
more of the corporation&#146;s assets) with an &#147;interested stockholder&#148; (generally
defined as a person owning 15% or more of the outstanding voting stock of the
corporation, subject to certain exceptions) for a period of three years after
the date of the transaction in which the person became an interested
stockholder, unless the business combination is approved in a prescribed
manner. This provision could discourage others from bidding for our shares and
could, as a result, reduce the likelihood of an increase in our stock price
that would otherwise occur if a bidder sought to buy our stock.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It could also discourage, delay or prevent another
company from merging with us or acquiring us, even if our stockholders were to
consider such a merger or acquisition to be favorable.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, our Board of
Directors has the authority to issue up to 250,000 shares of preferred stock,
and to determine the price, rights, preferences and restrictions, including
voting and conversion rights, of those shares without any further action or
vote by the stockholders. The rights of the holders of Common Stock will be
subject to, and may be adversely affected by, the rights of the holders of
preferred stock that may be issued in the future. Such provisions could adversely
affect the holders of Common Stock in a variety of ways, including by
potentially discouraging, delaying or preventing a takeover of us and by
diluting our earnings per share.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><a name="WeDoNotExpectToPayDividendsInTheF_212845"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">We do
not expect to pay dividends in the foreseeable future.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We currently do not intend
to pay any dividends on our Common Stock. We currently intend to retain any
earnings for working capital, repayment of indebtedness, capital expenditures
and general corporate purposes.</font></p>

<p style="margin:0pt 0pt .0001pt;"><a name="ForAllOfTheForegoingReasonsAndOth_214020"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FOR ALL
OF THE FOREGOING REASONS AND OTHERS SET FORTH IN THIS PROSPECTUS, THE
SECURITIES OFFERED HEREBY INVOLVE A HIGH DEGREE OF RISK. ANY PERSON CONSIDERING
AN INVESTMENT IN THE SECURITIES OFFERED HEREBY SHOULD BE AWARE OF THESE AND
OTHER FACTORS SET FORTH IN THIS PROSPECTUS. THE SECURITIES SHOULD BE PURCHASED ONLY
BY PERSONS WHO CAN AFFORD A TOTAL LOSS OF THEIR INVESTMENT IN THE COMPANY.</font></b></p>


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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="ForwardlookingStatements_212853"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">FORWARD-LOOKING STATEMENTS</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Prospectus, as well as information incorporated
by reference in this Prospectus, contains forward-looking statements that
involve risks and uncertainties. Some of the forward-looking statements appear
under &#147;Risk Factors.&#148;&#160; These statements
relate to future events of our future financial performance. In some cases you
can identify forward-looking statements by terminology such as &#147;may,&#148; &#147;would,&#148; &#147;will,&#148;,
&#147;should,&#148; &#147;could,&#148; &#147;expects,&#148; &#147;plans,&#148; &#147;anticipates,&#148; &#147;believes,&#148; &#147;estimates,&#148; &#147;predicts,&#148;
&#147;potential,&#148; &#147;continue,&#148; or the negative of these terms or other comparable
terminology. These statements are only predictions. Actual events or results
may differ materially. In evaluating these statements, you should specifically
consider various factors, including the risks outlined in the Risk Factors
section of this Prospectus. These factors may cause our actual results to
differ materially from any forward-looking statement. Although we believe that
the expectations reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or
achievements.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="IncorporationOfCertainDocumentsBy_215212"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</font></b></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Securities and
Exchange Commission (the &#147;Commission&#148;) pursuant to the Securities Exchange Act
of 1934, as amended (the &#147;Exchange Act&#148;), allows us to &#147;incorporate by
reference&#148; the documents we file with it, which means that we can disclose
important business, financial and other information to you in this Prospectus
by referring you to the publicly filed documents containing this information. The
information incorporated by reference is deemed to be a part of this
Prospectus, except for any information deemed furnished, superseded by
information contained in this Prospectus or filed later by us with the
Commission. This Prospectus incorporates by reference the documents set forth
below that we have previously filed with the Commission, which documents
contain important information about Langer and our Common Stock:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Annual Report on Form&nbsp;10-K for the fiscal year ended December&nbsp;31,
2004, filed pursuant to the Securities Exchange Act of 1934;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Amendment
No.&nbsp;7 to the Company&#146;s Registration Statement under the Securities Act of
1933 on Form&nbsp;S-1, filed on June&nbsp;3, 2005;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Quarterly Report on Form&nbsp;10-Q for the quarterly period
ended September&nbsp;30, 2005, filed pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Amendment
No.&nbsp;1 to the Company&#146;s Quarterly Report on Form&nbsp;10-Q/A for the
quarterly period ended June&nbsp;30, 2005, filed pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Quarterly Report on Form&nbsp;10-Q for the quarterly period
ended June&nbsp;30, 2005, filed pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Amendment
No.&nbsp;1 to the Company&#146;s Quarterly Report on Form&nbsp;10-Q/A for the
quarterly period ended March&nbsp;31, 2005, filed pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Quarterly Report on Form&nbsp;10-Q for the quarterly period
ended March&nbsp;31, 2005, filed pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;December&nbsp;22,
2005, filed on December&nbsp;23, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;December&nbsp;20,
2005, filed on December&nbsp;27, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;December&nbsp;19,
2005, filed on December&nbsp;22, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;November&nbsp;23,
2005, filed on November&nbsp;30, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;November&nbsp;18,
2005, filed on November&nbsp;21, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;November&nbsp;8,
2005, filed on November&nbsp;15, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;November&nbsp;7,
2005, filed on November&nbsp;14, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;September&nbsp;30,
2005, filed on October&nbsp;6, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;September&nbsp;15,
2005, filed on September&nbsp;20, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;September&nbsp;8,
2005, filed on September&nbsp;9, 2005, pursuant to the Exchange Act;</p>


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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;September&nbsp;1,
2005, filed on September&nbsp;8, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;August&nbsp;15,
2005, filed on August&nbsp;15, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;July&nbsp;13,
2005, filed on July&nbsp;13, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;June&nbsp;23,
2005, filed on June&nbsp;28, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;June&nbsp;10,
2005, filed on June&nbsp;15, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(w)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;May&nbsp;23,
2005, filed on May&nbsp;24, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;March&nbsp;31,
2005, filed on April&nbsp;5, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(y)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;March&nbsp;30,
2005, filed on March&nbsp;31, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(z)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K/A, Date of Event&#151;September&nbsp;30,
2004, filed on February&nbsp;11, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(aa)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Company&#146;s Current Report on Form&nbsp;8-K, Date of Event&#151;January&nbsp;28,
2005, filed on February&nbsp;2, 2005, pursuant to the Exchange Act;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 4.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(bb)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Amendment
No.&nbsp;1 to Definitive Proxy Statement dated May&nbsp;24, 2005, relating to
the annual meeting of stockholders held on June&nbsp;23, 2005; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 45.0pt;text-indent:-25.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(cc)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
description of the Company&#146;s Common Stock contained in the Company&#146;s
Registration Statement on Form&nbsp;8-A (Reg. No.&nbsp;000-12991),
filed with the Commission as of July&nbsp;3, 2002 by the Company to register
such securities under the Exchange Act, including all amendments and reports
filed for the purpose of updating that description.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All of such documents are on file with the Commission.
In addition, all documents filed by us pursuant to Sections 13(a), 13(c), 14
and 15(d)&nbsp;of the Exchange Act, subsequent to the date of this Prospectus
and prior to termination of the offering are incorporated by reference in this
Prospectus and are a part hereof from the date of filing of such documents. Any
statement contained in a document incorporated or deemed to be incorporated by
reference herein shall be deemed to be modified or superseded for purposes of
this Prospectus to the extent that a statement contained herein or in any
subsequently filed document that is also incorporated by reference herein
modifies or replaces such statement. Any statements so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part
of this Prospectus.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Prospectus incorporates herein by reference
important business and financial information about us that is not included in
or delivered with this Prospectus. This information is available to you without
charge upon written or oral request. If you would like a copy of any of this
information, please submit your request to us at Langer,&nbsp;Inc., 450 Commack Road, Deer Park, New York 11729-4510,
Attention: Secretary, or call (631)&nbsp;667-1200.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You should rely only on the information incorporated
by reference or provided in this Prospectus or any Prospectus supplement. We
have not authorized anyone else to provide you with different information. You
should not assume that the information in this Prospectus or any Prospectus
supplement is accurate as of any date other than the date on the front page&nbsp;of
those documents.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="CompanyOverview_212746"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMPANY OVERVIEW</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We design, manufacture and distribute a broad range of
medical products targeting the orthopedic, orthotic and prosthetic markets. We
also offer a diverse line of skincare products for the medical, therapeutic and
retail markets. We sell our products primarily in the United States and Canada,
as well as in more than 30 other countries, to national, regional,
international and independent medical distributors and directly to healthcare
professionals.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our broad range of over 500 orthopedic products,
including custom foot and ankle orthotic devices, pre-fabricated foot products,
rehabilitation products and gel-based orthopedic and prosthetics products, are
designed to correct, protect, heal and provide comfort for the patient. Our
line of over 50 skincare products, which include scar management products and
gel-based therapeutic gloves and socks, is designed to improve skin appearance
and transmit moisture agents, vitamins and nutrients to the skin.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Since February&nbsp;2001,
we have consummated the following three acquisitions:</font></p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;font-family:Times New Roman;margin-left:20.0pt;">
 <tr>
  <td width="77" valign="top" style="padding:0pt .7pt 0pt 0pt;width:57.65pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><i><font style="font-style:italic;">&#149;&nbsp;Silipos.</font></i></p>
  </td>
  <td width="14" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.5pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="489" valign="top" style="padding:0pt .7pt 0pt 0pt;width:366.85pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On September&nbsp;30, 2004, we acquired
  Silipos,&nbsp;Inc., our largest acquisition to date, from SSL International
  plc (&#147;SSL&#148;). Silipos is a leading designer, manufacturer and marketer of
  gel-based products focusing on the orthopedic, orthotic, prosthetic, and
  skincare markets. We acquired Silipos because of its distribution channels
  and proprietary products, and to enable us to expand into additional product
  lines that are part of our market focus.</font></p>
  </td>
 </tr>
 <tr>
  <td width="77" valign="top" style="padding:0pt .7pt 0pt 0pt;width:57.65pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&#149;&nbsp;Bi-Op.</font></i></p>
  </td>
  <td width="14" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.5pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="489" valign="top" style="padding:0pt .7pt 0pt 0pt;width:366.85pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On January&nbsp;13,
  2003, we acquired Bi-Op Laboratories,&nbsp;Inc., which is engaged in the
  design, manufacture, and sale of footwear and foot orthotic devices as well
  as orthotic and prosthetic services. We acquired Bi-Op to gain access to
  additional markets and complementary product lines.</font></p>
  </td>
 </tr>
 <tr>
  <td width="77" valign="top" style="padding:0pt .7pt 0pt 0pt;width:57.65pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&#149;&nbsp;Benefoot.</font></i></p>
  </td>
  <td width="14" valign="top" style="padding:0pt .7pt 0pt 0pt;width:10.5pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="489" valign="top" style="padding:0pt .7pt 0pt 0pt;width:366.85pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On May&nbsp;6, 2002, we
  acquired the net assets of Benefoot,&nbsp;Inc., and Benefoot Professional
  Products,&nbsp;Inc. (together, &#147;Benefoot&#148;). Benefoot designs, manufactures
  and distributes custom orthotics, custom Birkenstock<sup>&#174;</sup> sandals,
  therapeutic shoes, and prefabricated orthotic devices to healthcare
  professionals. We acquired Benefoot to gain additional scale in our core
  custom orthotics business as well as to gain access to complementary product
  lines.</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We sell our products directly to health care
professionals and also to wholesale distributors. Custom orthotic products are
primarily sold directly to health care professionals. Other products sold in
our orthopedic business are sold both directly to health care professionals and
to distributors. As a result of our acquisition of Silipos, the percentage of
our orthopedic products sold through distributors has increased. Products sold
in our skincare business are sold primarily to wholesale distributors. Silipos
historically sold most of its products (both orthopedic and skincare) through
distributors. Revenue from product sales is recognized at the time of shipment.
Our most significant expense is cost of sales. Cost of sales consists of materials,
direct labor and overhead and related shipping costs. General and
administrative expenses consist of executive, accounting, and administrative
salaries and related expenses, insurance, pension expenses, bank service
charges, stockholder relations, and amortization of identifiable intangibles
with definite lives. Selling expenses consist of advertising, promotions,
commissions, conventions, postage, travel and entertainment, and sales and
marketing salaries and related expenses.</font></p>

<p align="center" style="margin:0pt 0pt 6.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">* * *</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our principal executive
offices are located at 450 Commack Road,
Deer Park, New York 11729-4510.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="UseOfProceeds_213339"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">USE OF PROCEEDS</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will not
realize any proceeds from the sale of the Common Stock which may be sold
pursuant to this Prospectus for the respective accounts of the Selling
Stockholders. The Company, however, will derive proceeds upon the exercise of
the options granted to Selling Stockholders. All such proceeds will be
available to the Company for working capital and general corporate purposes. No
assurances can be given, however, as to when or if any or all of the options
will be exercised.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="SellingStockholders_213343"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SELLING STOCKHOLDERS</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Prospectus relates to Shares that are being
registered for reoffers and resales by Selling Stockholders who have acquired
or may acquire Shares pursuant to each of the Plans. The Selling Stockholders
may resell any or all of the Shares at any time they choose while this
Prospectus is effective.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive officers and directors, their family
members, trusts for their benefit, or entities that they own, that acquire
Common Stock under the Plans, may be added to the Selling Stockholder list
below by a Prospectus supplement filed with the Commission. The number of
Shares to be sold by any Selling Stockholder under this Prospectus also may be
increased or decreased by a Prospectus supplement. Non-affiliates who purchased
restricted securities, as these terms are defined in rule&nbsp;144(a)&nbsp;under
the Securities Act, under any of our 2005 Incentive Plan and who are not named
below may use this Prospectus for the offer or sale of their Common Stock if
they hold 1,000 shares or less. Although a person&#146;s name is included in the
table below, neither that person nor we are making an admission that the named
person is our &#147;affiliate.&#148;</font></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each of the Selling
Stockholders is an employee or director or former director of the Company. The
following table sets forth:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>the
name and principal position or positions over the past three years with the
Company of each Selling Stockholder;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>the
number of shares of Common Stock each Selling Stockholder beneficially owned as
of December&nbsp;23, 2005;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>the
number of shares of Common Stock acquired by each Selling Stockholder in
connection with&#160; stock options and stock
grants pursuant to the Plans and being registered under this Registration
Statement, some or all of which shares may be sold pursuant to this Prospectus;
and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>the
number of shares of Common Stock and the percentage, if 1% or more, of the
total class of Common Stock outstanding to be beneficially owned by each
Selling Stockholder following this offering, assuming the sale pursuant to this
offering of all shares acquired by such Selling Stockholder in connection with
grants pursuant the Plans and registered under this Registration Statement.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There is no assurance that
any of the Selling Stockholders will sell any or all of the shares offered by
them under this Registration Statement. The address of each Selling Stockholder
is c/o Langer,&nbsp;Inc., 450&nbsp;Commack Road, Deer Park, New York 11729-4510.</font></p>


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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="70" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:52.35pt;">
  <p align="left" style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Name&nbsp;of&nbsp;Seller</font></b></p>
  </td>
  <td width="7" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="57" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:42.65pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="118" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:88.85pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Relationships&nbsp;to<br>
  the&nbsp;Company</font></b></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="72" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:54.35pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number&nbsp;of&nbsp;<br>
  Shares<br>
  Beneficially&nbsp;<br>
  Owned(1)</font></b></p>
  </td>
  <td width="21" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.75pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="49" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:37.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Shares&nbsp;to<br>
  be&nbsp;Sold(2)</font></b></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="63" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:46.95pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Number&nbsp;of&nbsp;<br>
  Shares&nbsp;to&nbsp;be&nbsp;<br>
  Beneficially<br>
  Owned&nbsp;After&nbsp;<br>
  the&nbsp;Offering</font></b></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="72" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:54.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Percentage&nbsp;of&nbsp;<br>
  Common&nbsp;Stock<br>
  to&nbsp;be<br>
  Beneficially<br>
  Owned&nbsp;After&nbsp;<br>
  the&nbsp;Offering(1)</font></b></p>
  </td>
  <td width="14" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:10.25pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="133" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0pt;">
  <p style="margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Warren B. Kanders</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="118" valign="top" style="padding:0pt .7pt 0pt 0pt;width:88.85pt;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Director</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">2,638,523 </font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.85pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(3)</font></p>
  </td>
  <td width="21" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.9pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">515,000</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.95pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">2,123,523</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">20.4</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">%</font></p>
  </td>
  <td width="14" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:10.25pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="133" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0pt;">
  <p style="margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Andrew H. Meyers</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="118" valign="top" style="padding:0pt .7pt 0pt 0pt;width:88.85pt;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Director,
  President and<br>
  Chief Executive Officer</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">1,077,580 </font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.85pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(4)</font></p>
  </td>
  <td width="21" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.9pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">0</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.95pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">1,077,580</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">10.7</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">%</font></p>
  </td>
  <td width="14" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:10.25pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="133" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0pt;">
  <p style="margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">W. Gray Hudkins</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="118" valign="top" style="padding:0pt .7pt 0pt 0pt;width:88.85pt;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Chief
  Operating Officer</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">360,300 </font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.85pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(5)</font></p>
  </td>
  <td width="21" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.9pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">360,300</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.95pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">0</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">*</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:10.25pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="133" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0pt;">
  <p style="margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Joseph P. Ciavarella</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="118" valign="top" style="padding:0pt .7pt 0pt 0pt;width:88.85pt;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Chief
  Financial Officer</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">160,000 </font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.85pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(6)</font></p>
  </td>
  <td width="21" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.9pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">160,000</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.95pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">0</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">*</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:10.25pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="133" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0pt;">
  <p style="margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Burtt R. Ehrlich</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="118" valign="top" style="padding:0pt .7pt 0pt 0pt;width:88.85pt;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Director</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">242,783 </font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.85pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(7)</font></p>
  </td>
  <td width="21" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.9pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">96,376</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.95pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">146,407</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">1.5</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">%</font></p>
  </td>
  <td width="14" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:10.25pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="133" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0pt;">
  <p style="margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Arthur Goldstein</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="118" valign="top" style="padding:0pt .7pt 0pt 0pt;width:88.85pt;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Director</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">137,496 </font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.85pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(8)</font></p>
  </td>
  <td width="21" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.9pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">96,376</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.95pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">41,120</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">*</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:10.25pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="133" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0pt;">
  <p style="margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Jonathan R. Foster</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="118" valign="top" style="padding:0pt .7pt 0pt 0pt;width:88.85pt;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Director</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">61,960</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.85pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.9pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">&#151;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.95pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">61,960</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">*</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:10.25pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="133" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0pt;">
  <p style="margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Gregory R. Nelson</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="118" valign="top" style="padding:0pt .7pt 0pt 0pt;width:88.85pt;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Director</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">241,597</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.85pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(11)</font></p>
  </td>
  <td width="21" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.9pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.15pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">43,876</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.95pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.7pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">197,721</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.75pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">2.0</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">%</font></p>
  </td>
  <td width="14" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:10.25pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr bgcolor="#CCEEFF">
  <td width="133" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:100.0pt;">
  <p style="margin:0pt 0pt .0001pt 9.0pt;page-break-after:avoid;text-indent:-9.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Stuart P. Greenspon</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="118" valign="top" style="padding:0pt .7pt 0pt 0pt;width:88.85pt;">
  <p align="left" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:left;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">Director</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.0pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">167,700</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.85pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(9)</font></p>
  </td>
  <td width="21" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:15.75pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.9pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="39" valign="top" style="padding:0pt .7pt 0pt 0pt;width:29.15pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">37,500</font></p>
  </td>
  <td width="5" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:3.95pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.7pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="47" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.5pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">130,200</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.75pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.05pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="25" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22" valign="top" style="padding:0pt .7pt 0pt 0pt;width:16.4pt;">
  <p style="margin:0pt 0pt .0001pt;text-align:right;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">1.3</font></p>
  </td>
  <td width="25" valign="top" style="padding:0pt .7pt 0pt 0pt;width:18.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">%</font></p>
  </td>
  <td width="14" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:10.25pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<div style="line-height:9.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;">

</font></div>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">*</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Less than 1%</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(1)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Based on 9,893,623 shares of Common Stock outstanding
as of December&nbsp;23, 2005. As used in this table, a beneficial owner of a
security includes any person who, directly or indirectly, through contract,
arrangement, understanding, relationship or otherwise has or shares (a)&nbsp;the
power to vote, or direct the voting of, such security or (b)&nbsp;investment
power which includes the power to dispose, or to direct the disposition of,
such security. In addition, a person is deemed to be the beneficial owner of a
security if that person has the right to acquire beneficial ownership of such
security within 60 days.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(2)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Represents the maximum number of Shares issued under
each of the Plans that could be sold under this Prospectus if the holder sold
all of his or her Shares, exercised all of his or her options when vested and
sold the underlying Shares. Does not constitute a commitment to sell any or all
of the stated number of Shares. The number of Shares to be sold shall be
determined from time to time by each Selling Stockholder in his or her
discretion.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(3)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Includes 100,000 options granted to Kanders&nbsp;&amp;
Company,&nbsp;Inc. that are presently exercisable or exercisable within the
next 60 days, 515,000 options granted to Mr.&nbsp;Kanders that are presently
exercisable or exercisable within the next 60 days, 1,491,856 shares held by
Langer Partners, LLC, and 416,667 shares of Common Stock acquirable upon of
notes held by Langer Partners, LLC. Mr.&nbsp;Kanders is the sole voting member
and sole manager of Langer Partners, LLC and the sole stockholder of Kanders&nbsp;&amp;
Company,&nbsp;Inc. Also includes warrants to purchase 15,000 shares that are
presently exercisable or exercisable within the next 60&nbsp;days. Includes
100,000 shares of restricted stock, which are subject to a lock-up agreement
that expires on September&nbsp;1, 2008. Of the 515,000 options described above,
435,000 options are subject to a lock-up agreement, which expires with respect
to 80,000 shares on each of November&nbsp;12, 2006 and 2007, 91,666 shares on April&nbsp;1,
2008, and 91,667 shares on each of April&nbsp;1, 2009 and 2010. Does not
include 98,333 shares of Common Stock acquirable upon conversion of $590,000
principal amount of our 4% convertible subordinated notes due August&nbsp;31,
2006 held by members of Mr.&nbsp;Kanders&#146; extended family, as to which he
disclaims beneficial ownership.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(4)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Includes 175,000 options held by Mr.&nbsp;Meyers that
are presently exercisable or exercisable within the next 60 days.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(5)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Includes 337,500 options granted to Mr.&nbsp;Hudkins
that are presently exercisable or exercisable within the next 60 days, and 22,800
shares of restricted stock that have vested. Of the 337,500 options, 287,500
shares are subject to a lock-up agreement, which expires with respect to 50,000
shares on each of November&nbsp;12, 2006 and 2007, 45,833 shares on each of December&nbsp;31,
2007 and 2008, 45,834 shares on December&nbsp;31, 2009, 16,667 shares on each
of April&nbsp;1, 2008 and 2009, and 16,666 shares on April&nbsp;1, 2010. Mr. Hudkins
was originally awarded 40,000 shares of restricted stock, all of which was
vested as of December 20, 2005. On December 23, 2005, Mr. Hudkins surrendered
17,200 shares of such restricted stock to the Company to satisfy his obligation
to reimburse the Company for withholding taxes payable by the Company for the
benefit of Mr. Hudkins on account of the vesting of the restricted stock.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(6)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Includes 160,000 options held by Mr.&nbsp;Ciavarella
that are presently exercisable or exercisable within the next 60 days. Of the
160,000 options, 143,334 shares are subject to a lock-up agreement, which
expires with respect to 16,667 shares on each of March&nbsp;24, 2006 and 2007,
28,333 shares on each of December&nbsp;31, 2007 and 2008, 28,334 shares on December&nbsp;31,
2009, 8,333 shares on each of April&nbsp;1, 2008 and 2009, and 8,334 shares on April&nbsp;1,
2010.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(7)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Includes 96,376 options granted to Mr.&nbsp;Ehrlich
that are presently exercisable or exercisable within the next 60 days. Of the
96,376 options, 47,500 shares are subject to a lock-up agreement, which expires
with respect to 5,000 shares on each of November&nbsp;12, 2006 and 2007, and
12,500 shares on each of November&nbsp;8, 2006, 2007, and 2008. Also includes
46,600 </font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">23</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">shares held in trust, and
8,333 shares acquirable upon conversion of notes held in trust, by Mrs.&nbsp;Burtt
Ehrlich as Trustee for David Ehrlich, as to which Mr.&nbsp;Ehrlich disclaims
beneficial ownership.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(8)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Includes 96,376 options granted to Mr.&nbsp;Goldstein
that are presently exercisable or exercisable within the next 60 days. Of the
96,376 options, 47,500 shares are subject to a lock-up agreement, which expires
with respect to 5,000 shares on each of November&nbsp;12, 2006 and 2007, and
12,500 shares on each of November&nbsp;8, 2006, 2007, and 2008. Includes 8,333
shares acquirable upon conversion of notes held by Mr.&nbsp;Goldstein.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(9)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Excludes 41,903 shares held by Mrs.&nbsp;Stuart P.
Greenspon, as to which Mr.&nbsp;Greenspon disclaims beneficial ownership. Includes
37,500 options granted to Mr.&nbsp;Greenspon that are presently exercisable or exercisable
within the next 60 days, but which are subject to a lock-up agreement, which
expires with respect to 12,500 shares on each of November&nbsp;8, 2006, 2007,
and 2008.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(10)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Mr. Foster resigned from the Board of Directors on
September 8, 2005.</font></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="1" face="Times New Roman" style="font-size:8.5pt;">(11)</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="1" style="font-size:8.5pt;">Includes 43,876 options granted to Mr.&nbsp;Nelson that
are presently exercisable or exercisable by March&nbsp;7, 2006 when the options
expire in accordance with their terms. Mr.&nbsp;Nelson resigned from the Board
of Directors on November&nbsp;7, 2005.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">24</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="DescriptionOfCommonStock_214039"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">DESCRIPTION OF COMMON STOCK</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following description
of our Common Stock does not purport to be complete and is subject in all
respects to applicable Delaware law and qualified by reference to the
provisions of our Certificate of Incorporation and Bylaws. Copies of our
certificate of incorporation and bylaws are incorporated by reference and will
be sent to stockholders upon request. See &#147;Where Can You Find More Information.&#148;</font></p>

<p style="font-style:italic;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authorized Common
Stock</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are authorized to issue
an aggregate of 50,250,000 shares of capital stock, of which 50,000,000 shares
consists of shares of Common Stock, $0.02 par value, and 250,000 shares
consists of shares of preferred stock, $1.00 par value. As of December&nbsp;23,
2005, there were 9,893,623 shares of our Common Stock outstanding.</font></p>

<p style="font-style:italic;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Voting Rights</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The holders of our Common
Stock are entitled to one vote for each share on all matters voted on by our
stockholders, including the election of directors. No holders of our Common
Stock have any right to cumulative voting.</font></p>

<p style="font-style:italic;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dividend Rights</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to any
preferential rights of any outstanding series of preferred stock, created by
our board of directors, the holders of our Common Stock will be entitled to
such dividends as may be declared from time to time by our board of directors from
funds available therefore. We currently do not pay cash dividends on our Common
Stock and do not intend to pay cash dividends on our Common Stock in the
foreseeable future.</font></p>

<p style="font-style:italic;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Rights Upon
Liquidation</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event of a
liquidation, dissolution or winding up, the holders of our Common Stock are
entitled to share ratably in all assets remaining after payment of liabilities
and the liquidation value and other amounts owed to the holders of our
preferred stock.</font></p>

<p style="font-style:italic;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preemptive Rights</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Holders of our Common
Stock have no preemptive rights or rights to convert their shares of Common
Stock into any other securities.</font></p>

<p style="font-style:italic;margin:0pt 0pt 6.0pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other Rights</font></i></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There are no redemption or
sinking fund provisions applicable to our Common Stock.</font></p>


 <p style="font-size:10.0pt;margin:12.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">25</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="PlanOfDistribution_222805"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PLAN OF DISTRIBUTION</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Selling Stockholders, which as used herein
includes donees, pledgees, transferees or other successors-in-interest selling
shares of our Common Stock or interests in shares of our Common Stock received
after the date of this Prospectus from a Selling Stockholder as a gift, pledge,
partnership distribution or other transfer, may, from time to time, sell,
transfer or otherwise dispose of any or all of their shares of our Common Stock
or interests in shares of our Common Stock on any stock exchange, market or
trading facility on which the shares are traded or in private transactions. These
dispositions may be at fixed prices, at prevailing market prices at the time of
sale, at prices related to the prevailing market price, at varying prices
determined at the time of sale, or at negotiated prices.</font></p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Selling
Stockholders may use any one or more of the following methods when disposing of
shares or interests therein:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>market
transactions in accordance with the rules&nbsp;of The Nasdaq Stock Marker or
any other available markets or exchanges;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>ordinary
brokerage transactions and transactions in which the broker-dealer solicits
purchasers;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>block
trades in which the broker-dealer will attempt to sell the shares as agent, but
may position and resell a portion of the block as principal to facilitate the transaction;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>purchases
by a broker-dealer as principal and resale by the broker-dealer for its
account;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>an
exchange distribution in accordance with the rules&nbsp;of the applicable
exchange;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>privately
negotiated transactions;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>short
sales entered into after the date of this Prospectus;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>writing
or settlement of options or other hedging transactions, whether through an
options exchange or otherwise;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>distributions
to the partners and/or members of the Selling Stockholders;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>redemptions
or repurchases of interests owned by partners and/or members of the Selling
Stockholders;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>broker-dealers
may agree with the Selling Stockholders to sell a specified number of such
shares at a stipulated price per share;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>a
combination of any such methods of sale; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>any
other method permitted pursuant to applicable law.</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with the sale of our Common Stock or
interests therein, the Selling Stockholders may enter into hedging transactions
with broker-dealers or other financial institutions, which may in turn engage
in short sales of our Common Stock in the course of hedging the positions they
assume with the selling stockholders. The Selling Stockholders may also sell
shares of our Common Stock short and deliver these securities to close out
their short positions, or loan or pledge our Common Stock to broker-dealers
that in turn may sell these securities. The Selling Stockholders may also enter
into option or other transactions with broker-dealers or other financial
institutions or the creation of one or more derivative securities which require
the delivery to such broker-dealer or other financial institution of shares
offered by this Prospectus, which shares such broker-dealer or other financial
institution may resell pursuant to this Prospectus (as supplemented or amended
to reflect such transaction).</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Short selling occurs when a person sells shares of
stock which the person does not yet own and promises to buy stock in the future
to cover the sale. The general objective of the person selling the shares short
is to make a profit by buying the shares later, at a lower price, to cover the
sale. Significant amounts </font></p>


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<p style="margin:0pt 0pt 6.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of short selling, or the
perception that a significant amount of short sales could occur, could depress
the market price of our Common Stock. In contrast, purchases to cover a short
position may have the effect of preventing or retarding a decline in the market
price of our Common Stock, and together with the imposition of the penalty bid,
may stabilize, maintain or otherwise affect the market price of our Common
Stock. As a result, the price of our Common Stock may be higher than the price
that otherwise might exist in the open market. If these activities are
commenced, they may be discontinued at any time. These transactions may be
effected on The Nasdaq Stock Market or any other available markets or
exchanges.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The aggregate proceeds to the Selling Stockholders
from the sale of our Common Stock offered by them will be the purchase price of
our Common Stock less discounts or commissions, if any. Each of the Selling
Stockholders reserves the right to accept and, together with their agents from
time to time, to reject, in whole or in part, any proposed purchase of our
Common Stock to be made directly or through agents. We will not receive any of
the proceeds from this offering.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Selling Stockholders also may resell all or a
portion of the shares in open market transactions in reliance upon Rule&nbsp;144
under the Securities Act, provided that they meet the criteria and conform to
the requirements of that rule.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Selling Stockholders and any underwriters,
broker-dealers or agents that participate in the sale of our Common Stock or
interests therein may be &#147;underwriters&#148; within the meaning of Section&nbsp;2(11)
of the Securities Act. Any discounts, commissions, concessions or profits they
earn on any resale of the shares may be underwriting discounts and commissions
under the Securities Act. Selling Stockholders who are &#147;underwriters&#148; within
the meaning of Section&nbsp;2(11) of the Securities Act will be subject to the
prospectus delivery requirements of the Securities Act.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To the extent required, the shares of our Common Stock
to be sold, the names of the Selling Stockholders, the respective purchase
prices and public offering prices, the names of any agents, dealers or underwriters,
any applicable commissions or discounts with respect to a particular offer will
be set forth in an accompanying prospectus supplement or, if appropriate, a
post-effective amendment to the registration statement that includes this
Prospectus.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In order to comply with the securities laws of some
states, if applicable, our Common Stock may be sold in these jurisdictions only
through registered or licensed brokers or dealers. In addition, in some states
our Common Stock may not be sold unless it has been registered or qualified for
sale or an exemption from registration or qualification requirements is
available and is complied with.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have advised the Selling Stockholders that the
anti-manipulation rules&nbsp;of Regulation M under the Exchange Act may apply
to sales of shares in the market and to the activities of the Selling
Stockholders and their affiliates.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with this offering, some Selling
Stockholders may also engage in passive market making transactions in our
Common Stock on The Nasdaq Stock Market. Passive market making consists of
displaying bids on The Nasdaq Stock Market limited by the prices of independent
market makers and effecting purchases limited by those prices in response to
order flow. Rule&nbsp;103 of Regulation&nbsp;M under the Exchange Act limits
the amount of net purchases that each passive market maker may make and the
displayed size of each bid. Passive market making may stabilize the market
price of our Common Stock at a level above that which might otherwise prevail
in the open market and, if commenced, may be discontinued at any time.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, we will make
copies of this Prospectus (as it may be supplemented or amended from time to
time) available to the Selling Stockholders for the purpose of satisfying the
prospectus delivery requirements of the Securities Act. The Selling
Stockholders may indemnify any broker-dealer that participates in transactions
involving the sale of the shares against certain liabilities, including
liabilities arising under the Securities Act.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="WhereYouCanFindMoreInformation_214118"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHERE YOU CAN FIND MORE INFORMATION</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are subject to the informational requirements of
the Exchange Act, and in accordance therewith we are required to file periodic
reports, proxy statements and other information with the Commission. Such
reports, proxy statements and other information filed by us can be inspected
and copied at the Commission&#146;s Public Reference Room&nbsp;located at 450 Fifth
Street, N.W., Room&nbsp;1024, Washington, D.C. 20549, at the prescribed rates. The
Commission also maintains a site on the World Wide Web that contains reports,
proxy and information statements and other information regarding registrants
that file electronically. The address of such site is http://www.sec.gov. Please
call 1-800-SEC-0330 for further information on the operation
of the Commission&#146;s Public Reference Room.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Common Stock is quoted on The Nasdaq Stock Market
under the symbol &#147;GAIT.&#148;</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With respect to our Common Stock, this Prospectus
omits certain information that is contained in the registration statement on
file with the Commission, of which this Prospectus is a part. For further
information with respect to us and our Common Stock, reference is made to the
registration statement, including the exhibits incorporated therein by
reference or filed therewith. Statements herein contained concerning the
provisions of any document are not necessarily complete and, in each instance,
reference is made to the copy of such document filed as an exhibit or
incorporated by reference to the registration statement. The registration
statement and the exhibits may be inspected without charge at the offices of
the Commission or copies thereof obtained at prescribed rates from the public
reference section of the Commission at the addresses set forth above.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You should rely on the
information contained in this Prospectus and in the registration statement as
well as other information you deem relevant. We have not authorized anyone to
provide you with information different from that contained in this Prospectus. This
Prospectus is an offer to sell, or a solicitation of offers to buy, securities
only in jurisdictions where offers and sales are permitted. The information
contained in this Prospectus is accurate only as of the date of this
Prospectus, regardless of the time of delivery of this Prospectus or any sale
or exchange of securities, however, we have a duty to update that information
while this Prospectus is in use by you where, among other things, any facts or
circumstances arise which, individually or in the aggregate, represent a
fundamental change in the information contained in this Prospectus or any
material information with respect to the plan of distribution was not
previously disclosed in the Prospectus or there is any material change to such
information in the Prospectus. This Prospectus does not offer to sell or
solicit any offer to buy any securities other than our Common Stock to which it
relates, nor does it offer to buy any of these securities in any jurisdiction
to any person to whom it is unlawful to make such offer or solicitation in such
jurisdiction.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="Experts_214125"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXPERTS</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The consolidated financial
statements and related financial statement schedule incorporated in this
Prospectus by reference from the Company&#146;s Annual Report on Form&nbsp;10-K
for the year ended December&nbsp;31, 2004 have been audited by Deloitte&nbsp;&amp;
Touche LLP, an independent registered public accounting firm, as stated in
their reports, which are incorporated herein by reference, and have been so
incorporated in reliance upon the reports of such firm as experts in accounting
and auditing.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="LegalMatters_214127"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">LEGAL MATTERS</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The validity of the shares of Langer Common Stock
offered by this Prospectus will be passed upon by Kane Kessler, P.C., New York,
New York, as counsel to Langer.</font></p>


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<div>
 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>

<p style="font-weight:bold;margin:0pt 0pt 36.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">REOFFER
PROSPECTUS</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 36.0pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">LANGER, INC.</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 36.0pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">1,309,428 Shares of Common
Stock, par value $0.02 per share</font></b></p>

<div style="line-height:9.0pt;margin:0pt 0pt 33.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;">

</font></div>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">December&nbsp;23, 2005</font></b></p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt 1.0pt;padding:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">No dealer, salesperson or other person is authorized to give any information or to represent anything not contained in this Prospectus. You must not rely on any unauthorized information or representations. This Prospectus is an offer to sell only the shares offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this Prospectus is current only as of its date.</font></b></p> <p style="border:none;margin:0pt 0pt 1.0pt;padding:0pt;"><font size="1" face="Times New Roman" style="font-size:6.0pt;">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="Partii_214904"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PART&nbsp;II</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="InformationRequiredInTheRegistrat_214908"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">INFORMATION REQUIRED IN THE<br>
REGISTRATION STATEMENT</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item3_IncorporationOfCertainDocum_214913"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 3.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE</p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
following documents filed with the Securities and Exchange Commission (the &#147;Commission&#148;)
by Langer,&nbsp;Inc., a Delaware corporation (the &#147;Company&#148;), are incorporated
by reference into the Registration Statement:</font></p>

<div align="center" style="font-family:Times New Roman;">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;">(a)</p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Annual Report on Form&nbsp;10-K
  for the fiscal year ended December&nbsp;31, 2004, filed pursuant to the
  Securities Exchange Act of 1934;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment No.&nbsp;7 to
  the Company&#146;s Registration Statement under the Securities Act of 1933 on
  Form&nbsp;S-1, filed on June&nbsp;3, 2005;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Quarterly
  Report on Form&nbsp;10-Q for the quarterly period ended
  September&nbsp;30, 2005, filed pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment No.&nbsp;1 to
  the Company&#146;s Quarterly Report on Form&nbsp;10-Q/A for the quarterly
  period ended June&nbsp;30, 2005, filed pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Quarterly
  Report on Form&nbsp;10-Q for the quarterly period ended June&nbsp;30,
  2005, filed pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment No.&nbsp;1 to
  the Company&#146;s Quarterly Report on Form&nbsp;10-Q/A for the quarterly
  period ended March&nbsp;31, 2005, filed pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Quarterly
  Report on Form&nbsp;10-Q for the quarterly period ended March&nbsp;31,
  2005, filed pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;December&nbsp;22, 2005, filed on
  December&nbsp;23, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;December&nbsp;20, 2005, filed on
  December&nbsp;27, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;December&nbsp;19, 2005, filed on
  December&nbsp;22, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;November&nbsp;23, 2005, filed on
  November&nbsp;30, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;November&nbsp;18, 2005, filed on
  November&nbsp;21, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;November&nbsp;8, 2005, filed on
  November&nbsp;15, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;November&nbsp;7, 2005, filed on
  November&nbsp;14, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;September&nbsp;30, 2005, filed
  on October&nbsp;6, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;September&nbsp;15, 2005, filed
  on September&nbsp;20, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;September&nbsp;8, 2005, filed on
  September&nbsp;9, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
</table>

</div>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">1</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="font-family:Times New Roman;">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr style="page-break-inside:avoid;">
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;">(r)</p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current Report on Form&nbsp;8-K,
  Date of Event&#151;September&nbsp;1, 2005, filed on September&nbsp;8, 2005,
  pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;August&nbsp;15, 2005, filed on
  August&nbsp;15, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;July&nbsp;13, 2005, filed on
  July&nbsp;13, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;June&nbsp;23, 2005, filed on
  June&nbsp;28, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;June&nbsp;10, 2005, filed on
  June&nbsp;15, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(w)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;May&nbsp;23, 2005, filed on
  May&nbsp;24, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;March&nbsp;31, 2005, filed on
  April&nbsp;5, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(y)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;March&nbsp;30, 2005, filed on
  March&nbsp;31, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(z)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K/A, Date of Event&#151;September&nbsp;30, 2004, filed
  on February&nbsp;11, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(aa)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s Current
  Report on Form&nbsp;8-K, Date of Event&#151;January&nbsp;28, 2005, filed on
  February&nbsp;2, 2005, pursuant to the Exchange Act;</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(bb)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment No.&nbsp;1 to
  Definitive Proxy Statement dated May&nbsp;24, 2005, relating to the annual
  meeting of stockholders held on June&nbsp;23, 2005; and</font></p>
  </td>
 </tr>
 <tr>
  <td width="32" valign="top" style="padding:0pt .7pt 0pt 0pt;width:24.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(cc)</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="516" valign="top" style="padding:0pt .7pt 0pt 0pt;width:386.7pt;">
  <p style="margin:4.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The description of the
  Company&#146;s Common Stock contained in the Company&#146;s Registration Statement on
  Form&nbsp;8-A (Reg. No.&nbsp;000-12991), filed with the
  Commission as of July&nbsp;3, 2002 by the Company to register such securities
  under the Exchange Act, including all amendments and reports filed for the
  purpose of updating that description.</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All of such documents are
on file with the Commission. In addition, all documents filed by the Company
with the Commission pursuant to Sections 13(a), 13(c), 14 and 15(d)&nbsp;of the
Exchange Act subsequent to the date of this Registration Statement and prior to
the filing of a post-effective amendment which indicates that all the
securities offered hereby have been sold or which deregisters all securities
then remaining unsold shall be deemed to be incorporated by reference in this
Registration Statement and to be a part hereof from the date of the filing of such
documents with the Commission. Any statement contained in a document
incorporated by reference herein shall be deemed to be modified or superseded
for purposes hereof to the extent that a statement contained herein (or in any
other subsequently filed document which also is incorporated by reference
herein) modifies or supersedes such statement. Any statement so modified or
superseded shall not be deemed to constitute a part hereof except as so
modified or superseded.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item4_DescriptionOfSecurities_215844"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 4.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DESCRIPTION
OF SECURITIES</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not applicable.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item5_InterestsOfNamedExpertsAndC_215853"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 5.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INTERESTS
OF NAMED EXPERTS AND COUNSEL</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not applicable.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item6_IndemnificationOfDirectorsA_215905"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 6.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INDEMNIFICATION
OF DIRECTORS AND OFFICERS</p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are a Delaware corporation. Subsection (a)&nbsp;of Section&nbsp;145
of the General Corporation Law of the State of Delaware (the &#147;DGCL&#148;) empowers a
corporation to indemnify any current or former director, officer, employee or
agent of the corporation, or any individual serving at the corporation&#146;s
request as a director, officer, employee or agent of another organization, who
was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the
corporation), against expenses (including attorneys&#146; fees), judgments, fines
and amounts paid in settlement actually and reasonably incurred by the person
in connection with such action, suit or proceeding provided that such director,
officer, employee or agent acted in good faith and in a manner he reasonably
believed to be in, or not opposed to, the best interests of the corporation,
and, with respect to any criminal action or proceeding, provided further that
such director, officer, employee or agent had no reasonable cause to believe
his conduct was unlawful.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subsection (b)&nbsp;of Section&nbsp;145 of the DGCL
empowers a corporation to indemnify any current or former director, officer,
employee or agent who was or is a party or is threatened to be made a party to
any threatened, pending or completed action or suit by or in the right of the
corporation to procure a judgment in its favor by reason of the fact that such
person is or was a director, officer, employee or agent of the corporation, or
any individual serving at the corporation&#146;s request as a director, officer,
employee or agent of another organization against expenses (including attorneys&#146;
fees) actually and reasonably incurred by the person in connection with the
defense or settlement of such action or suit provided that such director,
officer, employee or agent acted in good faith and in a manner reasonably
believed to be in, or not opposed to, the best interests of the corporation,
except that no indemnification may be made in respect to any claim, issue or
matter as to which such director, officer, employee or agent shall have been
adjudged to be liable to the corporation unless and only to the extent that the
Court of Chancery or the court in which such action or suit was brought shall
determine upon application that, despite the adjudication of liability but in
view of all of the circumstances of the case, such director or officer is
fairly and reasonably entitled to indemnity for such expenses which the Court
of Chancery or such other court shall deem proper.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;145 further provides that to the extent a
present or former director or officer has been successful in the defense of any
action, suit or proceeding referred to in subsections (a)&nbsp;and (b)&nbsp;of Section&nbsp;145
or in the defense of any claim, issue or matter therein, he shall be
indemnified against expenses (including attorneys&#146; fees) actually and
reasonably incurred by him in connection therewith; that indemnification and
advancement of expenses provided for by, or granted pursuant to, Section&nbsp;145
shall not be deemed exclusive of any other rights to which the indemnified
party may be entitled; and empowers the corporation to purchase and maintain
insurance on behalf of a current or former director, officer, employee or agent
of the corporation, or any individual serving at the corporation&#146;s request as a
director, officer or employee of another organization, against any liability
asserted against him or incurred by him in any such capacity, or arising out of
his status as such, whether or not the corporation would have the power to
indemnify him against such liabilities under Section&nbsp;145.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our certificate of incorporation provides that we
shall, to the fullest extent permitted by the DGCL, indemnify all persons
acting as officers and directors of Langer from and against all expenses,
liabilities, or other matters covered by the DGCL.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As permitted by the DGCL, our certificate of
incorporation provides that, to the fullest extent permitted by the DGCL, no
director shall be personally liable to us or to our stockholders for monetary
damages for breach of his fiduciary duty as a director. Delaware law does not
permit the elimination of liability (a)&nbsp;for any breach of the director&#146;s
duty of loyalty to us or our stockholders, (b)&nbsp;for acts or omissions not
in good faith or which involve intentional misconduct or a knowing violation of
law, (c)&nbsp;in respect of certain unlawful dividend payments or stock
redemptions or repurchases or (d)&nbsp;for any </font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<br clear="all" style="page-break-before:always;">


<p style="margin:0pt 0pt 6.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">transaction from which the
director derives an improper personal benefit. The effect of this provision in
the certificate of incorporation is to eliminate our rights and the rights of
our stockholders (through stockholders&#146; derivative suits on behalf of us) to
recover monetary damages against a director for breach of fiduciary duty as a
director thereof (including breaches resulting from negligent or grossly
negligent behavior) except in the situations described in clauses (a)&nbsp;-
(d), inclusive, above. These provisions will not alter the liability of
directors under federal securities laws.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have also entered into separate indemnification
agreements with each of our directors and executive officers which provide
significant additional protection to such persons. In addition, we have in
effect a directors and officers liability insurance policy indemnifying our
directors and officers and the directors and officers of our subsidiaries
within a specific limit for certain liabilities incurred by them, including
liabilities under the Securities Act. We pay the entire premium of this policy.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We believe that our
certificate of incorporation and bylaw provisions, our directors and officers
liability insurance policy and our indemnification agreements are necessary to
attract and retain qualified persons to serve as our directors and officers.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item7_ExemptionFromRegistrationCl_215920"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 7.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EXEMPTION
FROM REGISTRATION CLAIMED</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certain restricted
securities to be reoffered and resold pursuant to this Registration Statement
were issued under the Plans and in transactions exempt from registration
pursuant to Section&nbsp;4(2)&nbsp;of the Securities Act.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item8_Exhibits_215926"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 8.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EXHIBITS</p>

<div align="center" style="font-family:Times New Roman;">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="60" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:45.0pt;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;">Exhibit&nbsp;No.</p>
  </td>
  <td width="7" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="541" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:405.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Description of Exhibits</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="42" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:31.8pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font></p>
  </td>
  <td width="18" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="541" valign="top" style="padding:0pt .7pt 0pt 0pt;width:405.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Langer,&nbsp;Inc. 2005 Stock Incentive Plan (filed
  as Appendix A to Amendment No.&nbsp;1 to the Registrant&#146;s Definitive Proxy
  Statement dated May&nbsp;24, 2005, filed with the Securities and Exchange
  Commission on May&nbsp;26, 2005).*</font></p>
  </td>
 </tr>
 <tr>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.8pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="541" valign="top" style="padding:0pt .7pt 0pt 0pt;width:405.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Langer,&nbsp;Inc. 2001
  Stock Incentive Plan (filed as Exhibit&nbsp;10.18 of our Annual Report on
  Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2001, filed
  with the Securities and Exchange Commission on April&nbsp;1, 2002).*</font></p>
  </td>
 </tr>
 <tr>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.8pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="541" valign="top" style="padding:0pt .7pt 0pt 0pt;width:405.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock Option Agreement
  between Langer,&nbsp;Inc. and W. Gray Hudkins, dated November&nbsp;12, 2004
  (filed as Exhibit&nbsp;10.35 to our Registration Statement on Form&nbsp;S-1
  (File No.&nbsp;333-120718) filed with the Securities and Exchange Commission
  on November&nbsp;23, 2004).*</font></p>
  </td>
 </tr>
 <tr>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.8pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.4</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="541" valign="top" style="padding:0pt .7pt 0pt 0pt;width:405.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock Option Agreement
  between Langer,&nbsp;Inc. and W. Gray Hudkins, dated November&nbsp;12, 2004
  (filed as Exhibit&nbsp;10.37 to our Registration Statement on Form&nbsp;S-1
  (File No.&nbsp;333-120718) filed with the Securities and Exchange Commission
  on November&nbsp;23, 2004).*</font></p>
  </td>
 </tr>
 <tr>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.8pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="541" valign="top" style="padding:0pt .7pt 0pt 0pt;width:405.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion of Kane Kessler,
  P.C. regarding the legality of the securities being registered.**</font></p>
  </td>
 </tr>
 <tr>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.8pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.1</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="541" valign="top" style="padding:0pt .7pt 0pt 0pt;width:405.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of Kane Kessler,
  P.C. (included in Exhibit&nbsp;No.&nbsp;5.1 to the Registration Statement).</font></p>
  </td>
 </tr>
 <tr>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.8pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.2</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="541" valign="top" style="padding:0pt .7pt 0pt 0pt;width:405.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of
  Deloitte&nbsp;&amp; Touche LLP.**</font></p>
  </td>
 </tr>
 <tr>
  <td width="42" valign="top" style="padding:0pt .7pt 0pt 0pt;width:31.8pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.1</font></p>
  </td>
  <td width="18" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.2pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="7" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.0pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="541" valign="top" style="padding:0pt .7pt 0pt 0pt;width:405.7pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Power of Attorney
  (included in the signature pages&nbsp;of this registration statement).**</font></p>
  </td>
 </tr>
</table>

</div>

<div style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="160" noshade color="black" align="left" style="width:120.0pt;">

</font></div>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Incorporated
by reference.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">**</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Filed
herewith.</p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">4</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-family:Times New Roman;font-size:10.0pt;font-weight:bold;margin:0pt 0pt 6.0pt 47.0pt;page-break-after:avoid;text-indent:-47.0pt;"><a name="Item9_Undertakings_220422"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 9.</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>UNDERTAKINGS</p>

<p style="margin:0pt 0pt 6.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160; The undersigned registrant hereby
undertakes:</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&#160;&#160; To file,
during any period in which offers or sales are being made, a post-effective
amendment to the Registration Statement:</font></p>

<p style="margin:0pt 0pt 6.0pt 40.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160; To include
any prospectus required by Section&nbsp;10(a)(3)&nbsp;of the Securities Act;</font></p>

<p style="margin:0pt 0pt 6.0pt 40.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160; To reflect
in the Prospectus any facts or events arising after the effective date of the
Registration Statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the Registration Statement;</font></p>

<p style="margin:0pt 0pt 6.0pt 40.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160; To include
any material information with respect to the plan of distribution not
previously disclosed in the Registration Statement or any material change to
such information in the Registration Statement;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 6.0pt 20.0pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">provided</font></i>, <i><font style="font-style:italic;">however</font></i>,
that paragraphs (a)(i)&nbsp;and (a)(ii)&nbsp;do not apply if the information
required to be included in a post-effective amendment by those paragraphs is
contained in periodic reports filed by the Company pursuant to Section&nbsp;13
or Section&nbsp;15(d)&nbsp;of the Exchange Act that are incorporated by
reference in the Registration Statement.</p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)&#160;&#160; That, for
the purpose of determining any liability under the Securities Act, each such
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona&nbsp;fide offering thereof.</font></p>

<p style="margin:0pt 0pt 6.0pt 20.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)&#160;&#160; To remove
from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160; The
undersigned registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act, each filing of the Company&#146;s annual report
pursuant to Section&nbsp;13(a)&nbsp;or Section&nbsp;15(d)&nbsp;of the Exchange
Act that is incorporated by reference in the Registration Statement shall be
deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be
the initial bona&nbsp;fide offering thereof.</font></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.&#160;&#160;&#160;&#160; Insofar as
indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers and controlling persons of the Company
pursuant to the foregoing provisions, or otherwise, the Company has been
advised that in the opinion of the Commission such indemnification is against
public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the Company of expenses incurred or paid
by a director, officer or controlling person of the Company in the successful
defense of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities being
registered, the Company will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">5</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div>

<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="Signatures_215145"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURES</font></b></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant
to the requirements of the Securities Act of 1933, as amended, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form&nbsp;S-8 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Deer Park, State of New York, on this 23<sup>rd</sup>
day of December, 2005.</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="292" valign="top" style="padding:0pt .7pt 0pt 0pt;width:218.7pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"></p>
  </td>
  <td width="315" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:236.15pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LANGER, INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="292" valign="top" style="padding:0pt .7pt 0pt 0pt;width:218.7pt;">
  <p style="margin:24.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.5pt;">
  <p style="margin:24.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="8" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.35pt;">
  <p style="margin:24.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="286" colspan="3" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:214.3pt;">
  <p style="margin:24.0pt 0pt .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">/</font>s/ ANDREW H. MEYERS</font></p>
  </td>
 </tr>
 <tr>
  <td width="292" valign="top" style="padding:0pt .7pt 0pt 0pt;width:218.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.5pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:31.1pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:6.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="236" valign="top" style="padding:0pt .7pt 0pt 0pt;width:176.85pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Andrew H. Meyers</font></p>
  </td>
 </tr>
 <tr>
  <td width="292" valign="top" style="padding:0pt .7pt 0pt 0pt;width:218.7pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21" valign="top" style="padding:0pt .7pt 0pt 0pt;width:15.5pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="8" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:31.1pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="8" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:6.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="236" valign="top" style="padding:0pt .7pt 0pt 0pt;width:176.85pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

</div>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-weight:bold;margin:0pt 0pt 6.0pt;page-break-after:avoid;text-align:center;"><a name="PowerOfAttorney_215947"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">POWER OF ATTORNEY</font></b></p>

<p style="margin:0pt 0pt 6.0pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each of the undersigned officers and directors of
Langer,&nbsp;Inc. hereby severally constitutes and appoints W. Gray Hudkins and
Joseph P. Ciavarella as the attorney-in-fact for the undersigned, in any and
all capacities, with full power of substitution, to sign any and all pre- or
post-effective amendments to this Registration Statement, any subsequent
Registration Statement for the same offering which may be filed pursuant to Rule&nbsp;462(b)&nbsp;under
the Securities Act of 1933, as amended, and any and all pre- or post-effective
amendments thereto, and to file the same with exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact full power and authority to do and perform
each and every act and thing requisite and necessary to be done in and about
the premises, as fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said attorney-in-fact may
lawfully do or cause to be done by virtue hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant
to the requirements of the Securities Act of 1933, as amended, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated:</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="71" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:53.3pt;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"></p>
  </td>
  <td width="47" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:35.35pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Signature</font></b></p>
  </td>
  <td width="71" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:53.35pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="116" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:86.65pt;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"></p>
  </td>
  <td width="24" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.7pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Title</font></b></p>
  </td>
  <td width="116" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:86.65pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="11" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="53" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:39.45pt;">
  <p style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"></p>
  </td>
  <td width="24" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:17.95pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Date</font></b></p>
  </td>
  <td width="53" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:39.45pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p align="center" style="margin:12.0pt 0pt .0001pt 10.0pt;page-break-after:avoid;text-align:center;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ ANDREW H. MEYERS</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:12.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:12.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President, Chief
  Executive Officer, and </font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:12.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:12.0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December&nbsp;29, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Andrew
  H. Meyers</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director (principal
  executive officer)</font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p align="center" style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ JOSEPH P.
  CIAVARELLA</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial
  Officer and Vice President </font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December&nbsp;29, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Joseph
  P. Ciavarella</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(principal financial
  officer)</font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December&nbsp;29, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Burtt
  R. Ehrlich</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December&nbsp;29, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Arthur
  Goldstein</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p align="center" style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ STUART P.
  GREENSPON</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December&nbsp;29, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stuart
  P. Greenspon</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p align="center" style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ WARREN B.
  KANDERS</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director</font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:24.0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December&nbsp;29, 2005</font></p>
  </td>
 </tr>
 <tr>
  <td width="189" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:142.0pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Warren B. Kanders</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="255" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:191.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="11" valign="top" style="padding:0pt .7pt 0pt 0pt;width:8.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="129" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:96.8pt;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">II-</font><font face="Times New Roman">7</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='II-7',FILE='C:\fc\36315596129_D11240_729186\22463-1-jc.htm',USER='jmsproofassembler',CD='Dec 29 15:59 2005' -->



<br clear="all" style="page-break-before:always;">

<div style="font-family:Times New Roman;">

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><a name="ExhibitIndex_221451"></a><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT INDEX</font></b></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;">
 <tr>
  <td width="57" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:42.75pt;">
  <p align="left" style="font-size:8.0pt;font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:left;">Exhibit&nbsp;No.</p>
  </td>
  <td width="16" valign="bottom" style="padding:0pt .7pt 0pt 0pt;width:12.35pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="535" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:401.6pt;">
  <p style="font-weight:bold;line-height:8.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;">Description of Exhibits</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="40" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:30.0pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.1</font></p>
  </td>
  <td width="17" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:12.75pt;">
  <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="535" valign="top" style="padding:0pt .7pt 0pt 0pt;width:401.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Langer,&nbsp;Inc. 2005 Stock Incentive Plan (filed
  as Appendix A to Amendment No.&nbsp;1 to the Registrant&#146;s Definitive Proxy
  Statement dated May&nbsp;24, 2005, filed with the Securities and Exchange
  Commission on May&nbsp;26, 2005).*</font></p>
  </td>
 </tr>
 <tr>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.0pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.2</font></p>
  </td>
  <td width="17" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.75pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="535" valign="top" style="padding:0pt .7pt 0pt 0pt;width:401.6pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Langer,&nbsp;Inc. 2001
  Stock Incentive Plan (filed as Exhibit&nbsp;10.18 of our Annual Report on Form&nbsp;10-K
  for the fiscal year ended December&nbsp;31, 2001, filed with the Securities
  and Exchange Commission on April&nbsp;1, 2002).*</font></p>
  </td>
 </tr>
 <tr>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.0pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.3</font></p>
  </td>
  <td width="17" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.75pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="535" valign="top" style="padding:0pt .7pt 0pt 0pt;width:401.6pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock Option Agreement
  between Langer,&nbsp;Inc. and W. Gray Hudkins, dated November&nbsp;12, 2004
  (filed as Exhibit&nbsp;10.35 to our Registration Statement on Form&nbsp;S-1
  (File No.&nbsp;333-120718) filed with the Securities and Exchange
  Commission on November&nbsp;23, 2004).*</font></p>
  </td>
 </tr>
 <tr>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.0pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.4</font></p>
  </td>
  <td width="17" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.75pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="535" valign="top" style="padding:0pt .7pt 0pt 0pt;width:401.6pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock Option Agreement
  between Langer,&nbsp;Inc. and W. Gray Hudkins, dated November&nbsp;12, 2004
  (filed as Exhibit&nbsp;10.37 to our Registration Statement on Form&nbsp;S-1
  (File No.&nbsp;333-120718) filed with the Securities and Exchange
  Commission on November&nbsp;23, 2004).*</font></p>
  </td>
 </tr>
 <tr>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.0pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.1</font></p>
  </td>
  <td width="17" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.75pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="535" valign="top" style="padding:0pt .7pt 0pt 0pt;width:401.6pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Opinion of Kane Kessler,
  P.C. regarding the legality of the securities being registered.**</font></p>
  </td>
 </tr>
 <tr>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.0pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.1</font></p>
  </td>
  <td width="17" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.75pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="535" valign="top" style="padding:0pt .7pt 0pt 0pt;width:401.6pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of Kane Kessler,
  P.C. (included in Exhibit&nbsp;No.&nbsp;5.1 to the Registration Statement).</font></p>
  </td>
 </tr>
 <tr>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.0pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.2</font></p>
  </td>
  <td width="17" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.75pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="16" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.35pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="535" valign="top" style="padding:0pt .7pt 0pt 0pt;width:401.6pt;">
  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consent of
  Deloitte&nbsp;&amp; Touche LLP.**</font></p>
  </td>
 </tr>
 <tr>
  <td width="40" valign="top" style="padding:0pt .7pt 0pt 0pt;width:30.0pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.1</font></p>
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  <td width="17" valign="top" style="padding:0pt .7pt 0pt 0pt;width:12.75pt;">
  <p align="right" style="margin:6.0pt 0pt .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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  <p style="margin:6.0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Power of Attorney
  (included in the signature pages&nbsp;of this registration statement).**</font></p>
  </td>
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<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Incorporated
by reference.</p>

<p style="font-size:10.0pt;margin:0pt 0pt 6.0pt 20.0pt;text-indent:-20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">**</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Filed herewith.</p>

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[{"type": "S-8", "sequence": "1", "filename": "a05-22463_1s8.htm", "description": "SECURITIES TO BE OFFERED TO EMPLOYEES PURSUANT TO EMPLOYEE BENEFIT PLANS", "secsgml_size_bytes": 355170}]
{"company-data": {"conformed-name": "LANGER INC", "cik": "0000725460", "assigned-sic": "3842", "irs-number": "112239561", "state-of-incorporation": "NY", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-130764", "film-number": "051292202"}, "business-address": {"street1": "450 COMMACK ROAD", "city": "DEER PARK", "state": "NY", "zip": "11729", "phone": "6136671200"}, "mail-address": {"street1": "450 COMMACK ROAD", "city": "DEER PARK", "state": "NY", "zip": "11729"}}
As filed with the Securities and Exchange Commission on December 29, 2005
Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM S-8
REGISTRATION
STATEMENT
UNDER
THE SECURITIES ACT OF 1933
LANGER, INC.
(Exact name of registrant
as specified in its charter)
Delaware
11-2239561
(State or other jurisdiction
of incorporation or organization)
(I.R.S. Employer
Identification Number)
450 Commack Road
Deer Park, New York 11729-4510
(631) 667-1200
(Address, including zip
code, and telephone number, including area code, of principal executive
offices)
Langer, Inc. 2005 Stock Incentive Plan
The Langer Biomechanics Group, Inc. 2001 Stock Incentive Plan
Stock Option Agreement between Langer, Inc. and W. Gray Hudkins,
dated November 12, 2004
Restricted Stock Agreement between Langer, Inc. and W. Gray Hudkins,
dated November 12, 2004
(Full title of the plan)
Andrew H. Meyers
President and Chief Executive Officer
Langer, Inc.
450 Commack Road
Deer Park, New York 11729-4510
(631) 667-1200
(Name, address, including
zip code, and telephone number, including area code, of agent for service)
Copy to:
Kane Kessler, P.C.
1350 Avenue of the Americas
New York, NY  10019-4896
(212) 541-6222
Attn:  Robert L. Lawrence, Esq.
CALCULATION
OF REGISTRATION FEE
Title of securities
to be registered
Amount to be
registered(1)
Proposed maximum
offering price per
share(2)
Proposed maximum
aggregate offering
price(2)
Amount of
registration fee(3)
Common Stock,
  $0.02 par value per share
2,190,000
$4.69
$10,271,100
$1,099
(1)
This Registration Statement covers (i) 2,000,000
shares of common stock (the "Common Stock"), $0.02 par value per share, of
Langer, Inc. issuable pursuant to the Langer Inc. 2005 Stock Incentive
Plan (the "2005 Incentive Plan"); (ii) 150,000 shares of Common Stock
issuable pursuant to the Stock Option Agreement between Langer, Inc. and
W. Gray Hudkins, dated November 12, 2004 (the "Hudkins Stock Option
Agreement"); and (iii) 40,000 shares of Common Stock issuable pursuant to
the Restricted Stock Agreement between Langer, Inc. and W. Gray
Hudkins, dated November 12, 2004 (the "Hudkins Restricted Stock Agreement").
Each of the 2005 Incentive Plan, the Hudkins Stock Option Agreement, and the
Hudkins Restricted Stock Agreement are collectively referred to herein as the "Plans".
In addition, pursuant to Rule 416(c) under the Securities Act of
1933, as amended (the "Securities Act") this Registration Statement covers an
indeterminable number of additional shares of Common Stock as may hereafter be
offered or issued pursuant to the Plans, to prevent dilution resulting from
stock splits, stock dividends or similar transactions effected without receipt
of consideration.
(2)
Estimated solely for the purpose of
calculating the registration fee. Pursuant to Rule 457(c) and 457(h),
the proposed maximum offering price per share is based upon (i) the
average exercise price relating to 240,000 outstanding options granted under
2005 Incentive Plan, and 150,000 options granted under the Hudkins Stock Option
Agreement, which is $7.50 and (ii) with respect to 1,660,000 shares
available for grant under the 2005 Incentive Plan, 100,000 shares issuable
pursuant to restricted stock awards granted under the 2005 Incentive Plan and
40,000 shares issuable pursuant to the Hudkins Restricted Stock Agreement, a
price of $4.69 (the average of the high and low price of the Registrant's
Common Stock as reported on The Nasdaq Stock Market on December 23, 2005).
(3)
Pursuant to Rule 429(b) under
the Securities Act, this Registration Statement includes up to 434,128 shares
of Common Stock issued or issuable pursuant to The Langer Biomechanics Group, Inc.
2001 Stock Incentive Plan (the "2001 Stock Incentive Plan") that were
previously registered on Form S-8 (Registration Statement No. 333-110962)
filed on December 5, 2003. In connection with the previously registered
shares for issuance under the 2001 Stock Incentive Plan, the Registrant paid a
fee of $367.69, a portion of which is attributable to the 434,128 shares being
carried forward in a combined reoffer prospectus being filed herewith (to the
extent that there are or may be control or restricted securities). See the Rule 429
note below. In connection with this Registration Statement, the Registrant is
paying a fee solely on the 2,190,000 additional shares of the Registrant's
Common Stock being registered. In addition, as permitted by Rule 429 under
the Securities Act of 1933, the prospectus filed together with this
Registration Statement shall be deemed to be a combined resale prospectus which
shall also relate to the Registrant's Registration Statement No. 333-110962
on Form S-8.
EXPLANATORY NOTE
The 2,190,000 shares of common stock, $0.02 par value
per share (the "Common Stock") of Langer, Inc., a Delaware corporation
(the "Company"), being registered pursuant to this Form S-8 are
issued or issuable pursuant to (i) the Langer Inc. 2005 Stock Incentive
Plan (the "2005 Incentive Plan"); (ii) the Stock Option Agreement between
Langer, Inc. and W. Gray Hudkins, dated November 12, 2004 (the "Hudkins
Stock Option Agreement"); and (iii) the Restricted Stock Agreement between
Langer, Inc. and W. Gray Hudkins, dated November 12, 2004 (the "Hudkins
Restricted Stock Agreement"). This Registration Statement also includes up to 434,128
shares of Common Stock issued or issuable pursuant to The Langer Biomechanics
Group, Inc. 2001 Stock Incentive Plan (the "2001 Stock Incentive Plan")
that were previously registered on Form S-8 (Registration Statement No. 333-110962)
filed on December 5, 2003 (the "2003 Registration Statement"). Pursuant to
General Instruction E to Form S-8, this Registration Statement
incorporates by reference the contents of the 2003 Registration Statement. Each
of the 2005 Incentive Plan, the Hudkins Stock Option Agreement, the Hudkins
Restricted Stock Agreement, and the 2001 Stock Incentive Plan are collectively
referred to herein as the "Plans".
This Registration Statement contains two parts. The
first part contains a Prospectus pursuant to Form S-3 (in accordance
with Section C of the General Instructions to the Form S-8)
which covers reoffers and resales of "restricted securities" and/or "control
securities" (as such terms are defined in Section C of the General
Instructions to Form S-8) of the Company. This Reoffer Prospectus
relates to up to
1,309,428
shares of Common Stock that have been or may be issued to certain
officers and directors of the Company pursuant to the Plans. The second part of
this Registration Statement contains Information Required in the Registration
Statement pursuant to Part II of Form S-8. The Form S-8
portion of this Registration Statement will be used for offers of shares of
Common Stock of the Company pursuant to the 2005 Incentive Plan, the Hudkins Stock Option Agreement, and the
Hudkins Restricted Stock Agreement.
ii
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1.   Plan Information
The document(s) containing
the information specified in Part I of Form S-8 will be sent or
given to participants in the Plans as specified by Rule 428(b)(1) under
the Securities Act. Such documents are not being filed with the Securities and
Exchange Commission, but constitute, along with the documents incorporated by
reference into this Registration Statement, a prospectus that meets the
requirements of Section 10(a) of the Securities Act.
Item 2.   Company Information and Employee
Plan Annual Information
The Company will furnish without charge to each person
to whom the Prospectus is delivered, upon the written or oral request of such
person, a copy of any and all of the documents incorporated by reference in
Item 3 of Part II of this Registration Statement, other than exhibits to
such documents (unless such exhibits are specifically incorporated by reference
to the information that is incorporated). Those documents are incorporated by
reference in the Section 10(a) prospectus. Requests should be
directed to Langer, Inc., 450
Commack Road, Deer Park, New
York 11729-4510, Attention: Secretary; telephone number (631) 667-1200.
Note:
The
Reoffer Prospectus referred to in the Explanatory Note follows this page.
iii
REOFFER
PROSPECTUS
LANGER, INC.
1,309,428 SHARES OF COMMON STOCK
(par value $0.02 per share)
This Prospectus relates to up to 1,309,428 shares (the
"Shares") of common stock, $0.02 par value per share (the "Common Stock"), of
Langer, Inc., a Delaware corporation (the "Company" or "Langer") which may
be offered and sold from time to time by certain stockholders of the Company
(the "Selling Stockholders") who have acquired or will acquire such Shares
pursuant to stock options and stock grants issued or issuable under the (i) the
Langer Inc. 2005 Stock Incentive Plan (the "2005 Incentive Plan"); (ii) the
Stock Option Agreement between Langer, Inc. and W. Gray Hudkins, dated November 12,
2004 (the "Hudkins Stock Option Agreement"); (iii) the Restricted Stock
Agreement between Langer, Inc. and W. Gray Hudkins, dated November 12,
2004 (the "Hudkins Restricted Stock Agreement"); and (iv) the Langer
Biomechanics Group, Inc. 2001 Stock Incentive Plan (the "2001 Stock
Incentive Plan"). Each of the 2005 Incentive Plan, the Hudkins Stock Option
Agreement, the Hudkins Restricted Stock Agreement, and the 2001 Stock Incentive
Plan are collectively referred to herein as the "Plans".
The Company will not receive any of the proceeds from
sales of the Shares by any of the Selling Stockholders. The Shares may be
offered from time to time by any or all of the Selling Stockholders (and their
donees and pledgees) through ordinary brokerage transactions, in negotiated
transactions or in other transactions, at such prices as he or she may
determine, which may relate to market prices prevailing at the time of sale or
be a negotiated price. See "Plan of Distribution."  All costs, expenses and fees in connection
with the registration of the Shares will be borne by the Company. Brokerage
commissions and similar selling expenses, if any, attributable to the offer or
sale of the Shares will be borne by the Selling Stockholder (or their donees
and pledgees).
Each Selling Stockholder and any broker executing
selling orders on behalf of a Selling Stockholder may be deemed to be an "underwriter"
as defined in the Securities Act of 1933, as amended (the "Securities Act"). If
any broker-dealers are used to effect sales, any commissions paid to
broker-dealers and, if broker-dealers purchase any of the Shares as principals,
any profits received by such broker-dealers on the resale of the Shares, may be
deemed to be underwriting discounts or commissions under the Securities Act. In
addition, any profits realized by the Selling Stockholders may be deemed to be
underwriting commissions.
Our Common Stock is listed
on The Nasdaq Stock Market. On December 23, 2005, the closing price of our
Common Stock was $4.72 per share.
See "Risk
Factors" on page 3 hereof for a discussion of certain factors that should
be carefully considered by prospective purchasers.
Neither
the Securities and Exchange Commission nor any state securities commission has
approved or disapproved these securities, or determined if this Prospectus is
truthful or complete. Any representation to the contrary is a criminal offense.
The date of this
Prospectus is December 23, 2005.
You should rely only on
the information included in or incorporated by reference into this Prospectus
or information we have referred to in this Prospectus. We have not authorized
anyone to provide you with information that is different. This Prospectus may
only be used where it is legal to sell these securities. This Prospectus is not
an offer to sell, or a solicitation of an offer to buy, in any state where the
offer or sale is prohibited. The information in this Prospectus is accurate on
the date of this Prospectus and may become obsolete later. Neither the delivery
of this Prospectus, nor any sale made under this Prospectus will, under any
circumstances, imply that the information in this Prospectus is correct as of
any date after the date of this Prospectus. References to "the Company," "Langer,"
"we" or "us" refer to Langer, Inc.
TABLE OF CONTENTS
Page
RISK FACTORS
3
FORWARD-LOOKING
  STATEMENTS
18
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
19
COMPANY
  OVERVIEW
21
USE OF
  PROCEEDS
22
SELLING
  STOCKHOLDERS
22
DESCRIPTION
  OF COMMON STOCK
25
PLAN OF
  DISTRIBUTION
26
WHERE YOU CAN FIND MORE INFORMATION
28
EXPERTS
28
LEGAL MATTERS
28
2
RISK FACTORS
Prospective
purchasers of the Common Stock should consider carefully the following risk
factors relating to the business of the Company, together with the information
and financial data set forth elsewhere in this Prospectus or incorporated herein
by reference, prior to making an investment decision. This Prospectus contains
forward-looking statements within the meaning of Section 27A of the
Securities Act and Section 21E of the Exchange Act. Such statements are
indicated by words or phrases such as "anticipate," "estimate," "project," "management
believes," "we believe" and similar words or phrases. Such statements are based
on current expectations and are subject to risks, uncertainties and
assumptions. Certain of these risks are described below. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those anticipated,
estimated or projected.
Risks Related to Our Operations
We
have a history of net losses and may incur additional losses in the future.
We have a history of net
losses. In order for us to achieve and maintain consistent profitability from
our operations, we must continue to achieve product revenue at or above current
levels. We may increase our operating expenses as we attempt to expand our
product lines and acquire other businesses and products. As a result, we may
need to increase our revenues significantly to achieve sustainable
profitability. We cannot assure you that we will be able to obtain sustainable
profitability. Any such failure could have a material adverse effect on the
market price of our Common Stock and our business, financial condition and
results of operations.
Our
business plan relies on certain assumptions for the market for our products
which, if incorrect, may adversely affect our profitability.
We believe that
various demographics and industry-specific trends will help drive growth
in the orthopedic, orthotic, prosthetic and skincare markets, including:
·
an aging
population with broad medical coverage, increased disposable income and longer
life        expectancy;
·
a
growing emphasis on physical fitness, leisure sports and conditioning, which
will continue to lead to increased injuries; and
·
increasing
awareness and use of non-invasive devices for prevention, treatment and
rehabilitation purposes.
These demographics and
trends are uncertain. The projected demand for our products could materially
differ from actual demand if our assumptions regarding these factors prove to
be incorrect or do not materialize, or if alternative treatments to those
offered by our products gain widespread acceptance.
There
are significant risks associated with our strategy of acquiring and integrating
businesses.
A key element of
our strategy is the acquisition of businesses and assets that will complement
our current business, increase size, expand our geographic scope of operations
and otherwise offer growth opportunities. We may not be able to successfully
identify attractive acquisition opportunities, obtain financing for
acquisitions, make acquisitions on satisfactory terms, or successfully acquire
and/or integrate identified targets. Additionally, competition for acquisition
opportunities in our industry may escalate, thereby increasing the costs to us
of completing acquisitions or cause us to refrain from making acquisitions. Our
ability to implement our acquisition strategy is also subject to other risks
and costs, including:
·
loss
of key employees, customers or suppliers of acquired businesses;
3
·
diversion
of management's time and attention from our core businesses;
·
adverse
effects on existing business relationships with suppliers and customers;
·
our
ability to realize operating efficiencies, synergies, or other benefits
expected from an acquisition;
·
risks
associated with entering markets in which we have limited or no experience; and
·
assumption
of contingent or undisclosed liabilities of acquisition targets.
In addition, in connection with our recent acquisition
of Silipos, we face the risk of incurring potential liabilities of Silipos
which may not be covered by the limited indemnification in the Silipos purchase
agreement.
The above risks could have
a material adverse effect on the market price of our Common Stock and our business,
financial condition and results of operations.
We
may face difficulties integrating the operations of Silipos.
We recently
completed the acquisition of Silipos, our largest acquisition to date. Our
ability to integrate the operations of Silipos is subject to various risks,
including:
·
failure
to effectively integrate the two companies' sales and marketing teams;
·
potential
incompatibility of the information technology systems of the companies, which
could cause internal reporting problems; and
·
loss
of key personnel.
If any of these risks were
to materialize in the future, we may not be able to realize the operating
efficiencies, synergies or other benefits expected from this acquisition. Our
failure to successfully integrate the operations of Silipos in a timely manner
without incurring unexpected costs could have a material adverse effect on the
market price of our Common Stock, business, financial condition and results of
operations.
We
may not be able to adequately manage our growth.
We have expanded, and are
seeking to continue to expand, our business. This growth has placed significant
demands on our management, administrative, operating and financial resources.
The continued growth of our customer base, the types of products offered and
the geographic markets served can be expected to continue to place a
significant strain on our resources. Personnel qualified in the production and
marketing of our products are difficult to find and hire, and enhancements of
information technology systems to support growth are difficult to implement.
Our future performance and profitability will depend in large part on our
ability to attract and retain additional management and other key personnel. In
addition, although we have recently implemented a new information technology
platform, we cannot assure you that the new system will be effective in
accommodating our growing accounting, financial and information needs. Any
failure to adequately manage our growth could have a material adverse effect on
the market price of our Common Stock and our business, financial condition and
results of operations.
A
write-off of intangible assets would adversely affect our results of
operations.
Our total assets include
substantial intangible assets, including goodwill acquired in connection with
the acquisitions of Benefoot, Bi-Op and Silipos representing the excess
of cost over the fair value of the identifiable assets acquired. We expect to
incur additional goodwill in connection with other acquisitions we make in the
future. We evaluate on a regular basis whether events and circumstances have
occurred
4
that
indicate that all or a portion of the carrying amount of the goodwill or other
intangible assets may no longer be recoverable, in which case a charge to
earnings would become necessary. Any determination requiring the write-off
of a significant portion of unamortized intangible assets could have a material
adverse effect on the market price of our Common Stock, and our business,
financial condition and our results of operations.
Our
business is highly competitive. If we fail to compete successfully, our sales
and operating results may be negatively affected and we may not achieve future
growth.
The orthopedic, orthotic, prosthetic and skincare
markets are highly competitive. Certain of our competitors in these markets
have more resources and experience as well as more recognizable trademarks for
products similar to those sold by us. In addition, the market for orthopedic
devices and related products is characterized by new product development and
corresponding obsolescence of existing products. Our competitors may develop
new techniques, therapeutic procedures or alternative products that are more
effective than our current technology or products or that render our technology
or products obsolete or uncompetitive, which could cause a decrease in orders
for our custom orthotic products. Such decreases could have a material adverse
effect on the market price of our Common Stock, and our business, financial
condition and results of operations.
We may not be able to develop successful new products
or enhance existing products, obtain regulatory clearances and approval of such
products, market such products in a commercially viable manner or gain market
acceptance for such products. Failure to develop, license or market new
products and product enhancements could materially and adversely affect our
competitive position, which could cause a significant decline in our sales and
profitability.
We expect that the level
of competition faced by us will increase in the future. Some competitors have
substantially greater financial, marketing, research and technical resources
than us. There can be no assurance that we will be able to continue to compete
successfully in the orthopedic, orthotic, prosthetic and skincare markets. Any
such failure could have a material adverse effect on the market price of our
Common Stock and our business, financial condition, and results of operations.
We
may not be able to raise adequate financing to fund our operations and growth
prospects.
Our acquisition and
product expansion programs, debt servicing requirements and existing operations
will require substantial capital resources. Currently, we do not have a working
capital facility or revolving line of credit with a financial institution for
additional borrowings. Accordingly, we cannot assure you that we will be able
to generate sufficient operating cash flow or obtain sufficient additional
financing to meet these requirements. If we do not have adequate resources and
cannot obtain additional capital on terms acceptable to us or at all, we may be
required to reduce operating costs by altering and delaying our business plan
or otherwise radically altering our business practices. Failure to meet our
future capital requirements could have a material adverse effect on the market
price of our Common Stock and our business, financial condition and results of
operations.
We
may be adversely affected by legal actions or proceedings.
Except as set forth below, neither we nor any of our
subsidiaries are currently a party to any legal action or proceeding which we
believe could have a material adverse effect on the market price of our Common
Stock and our business, financial condition or results of operations.
On April 21, 2005, Thermo-Ply, Inc., a
Florida corporation, filed an action in the United States District Court for
the Middle District of Florida (Tampa Division) against Silipos and four other
defendants. The action asserts a claim for alleged infringement of U.S. Patent No. 6,231,617.
Although not specifically identified by the claim, we believe that the claim,
insofar as it relates to us, may be directed
5
towards the Explorer Gel
Liners manufactured, distributed and sold by Silipos. We are currently
investigating the validity of this claim. Should the plaintiff be successful in
pressing this claim, Silipos could be enjoined from making, using or selling
the accused products and could also be assessed damages for the alleged
infringement, which damages could be increased up to three times in the event
the infringement is found to be willful, together with attorney fees and
certain costs.
We could become subject to certain claims or actions
brought by River Biomechanics ("River") and its principal, a former sales agent
and distributor for our foot orthotic devices sold in Canada. These claims may
include allegations relating to prior negotiations by us to acquire River, our
hiring of certain former employees of River and use of certain confidential
information. While we have received written correspondence from River and its
principal threatening to institute litigation and seek damages for
$5.0 million, no action has been brought to date. We would expect to
vigorously defend against any claims brought by River and its principal. We
also believe that we have potential causes of action against River and its
principal. While we do not believe that any such claims would have a material
adverse effect on our business, financial condition or results of operations we
have and could continue to experience a decline in sales to our Canadian
customers, which we expect to be offset to some extent by a reduction in our
expenses, as a result of the change in our relationship with River.
In addition, in connection with our acquisition of
Silipos, we could become subject to certain claims or actions brought by Poly-Gel,
L.L.C. ("Poly-Gel"), Silipos' former supplier of mineral oil based gels,
although no such claims have been brought to date. These claims may arise, for
example, out of the supply agreement between Silipos and Poly-Gel dated August 20,
1999, the manufacture, marketing or sale of products made from gel not
purchased from Poly-Gel, alleged misappropriation of trade secrets or
other confidential information (including gel formulations) of Poly-Gel,
as well as any other alleged violations of the supply agreement (the "Potential
Poly-Gel Claims"). For any of these potential claims, SSL International
plc ("SSL"), the seller of Silipos, has agreed to indemnify us for losses up to
$2.0 million, after which we would be liable for any such claims.
Furthermore, we have assumed responsibility for the first $150,000 of any other
liability in connection with our acquisition of Silipos, and SSL's maximum
liability for total indemnification related to our acquisition of Silipos is
between $5,000,000 and $7,000,000. Thus, if the total amount of all claims
arising from the acquisition exceed this maximum, whether or not related to
Poly-Gel, we would be liable for amounts in excess of the maximum. For claims
arising out of conduct that occurs after the closing of the Silipos transaction
on September 30, 2004, we have agreed to indemnify SSL against losses. We
would expect to vigorously defend against any claims brought by Poly-Gel
or any other third party. However, if such claims were brought, we may not
ultimately prevail.
Additionally, in the normal course of business, we may
be subject to claims and litigations in the areas of general liability. We may
also be subject to claims, litigations or other liabilities as a result of
acquisitions we have completed. The results of legal proceedings are difficult
to predict and we cannot provide you with any assurance that an action or
proceeding will not be commenced against us, or that we will prevail in any such
action or proceeding.
An unfavorable resolution
of any legal action or proceeding could both materially and adversely affect
the market price of our Common Stock and our business, results of operations,
liquidity or financial condition.
6
Our
existing purchasing arrangements may be adversely affected if we are unable to
maintain good relations with our suppliers.
Our ability to sustain our
gross margins has been and will continue to be dependent, in part, on our
ability to maintain satisfactory terms with the third-party manufacturers
of certain raw materials. These terms may be adversely impacted by changes in
our suppliers' strategies or changes in our relationship with our suppliers. We
cannot assure you that we will continue to maintain satisfactory terms with our
suppliers. Our inability to maintain such terms, the loss of any of our key
suppliers or any other interruption or delay in the supply of our required
materials or our inability to obtain these materials at acceptable prices or within
a reasonable amount of time could impair our ability to meet scheduled product
deliveries to our customers and could hurt our reputation and cause customers
to cancel orders.
We
may not be successful in manufacturing the raw material mineral oil based gels
we use in our gel-based products.
We did not renew Silipos'
supply agreement with Poly-Gel, which was the supplier of mineral oil based
gels used in our gel-based products, based on our evaluation of the risks of
relying on a single exclusive supplier and our belief that we could produce a
satisfactory mineral oil based gel of our own at similar or at lower cost. We
have only recently begun to manufacture such gels on our own and we do not have
prior experience in manufacturing gel on a commercial basis. We may not be able
to produce the gels in a consistent quality or in sufficient quantities to meet
the requirement of our gel-based products. Our failure to produce sufficient
quantities of high quality gels could hurt our reputation and cause customers
to cancel orders for our gel-based products or could prevent us from continuing
production of our gel-based products. For the nine months ended September 30,
2005, gel-based products accounted for approximately 44% of our revenues.
A large portion of Silipos' products utilize gels previously obtained from Poly-Gel.
If we are unsuccessful in manufacturing the gels ourselves and we are unable to
procure such gels from other suppliers on favorable terms or at all, our
business, financial condition and results of operations and the market price of
our Common Stock would be both materially and adversely affected.
We
rely heavily on our relationships with healthcare practitioners, agents and
distributors for marketing our products, and our failure to maintain these
relationships could adversely affect our business.
The sales of our products depend significantly on the
prescription or recommendation of such products by podiatrists, orthopedists,
orthopedic surgeons, dermatologists, cosmetic and plastic surgeons,
occupational and physical rehabilitation professionals, prosthetists,
orthotists and other healthcare professionals. Failure of our products to
retain the support of these surgeons and other specialists, or the failure of
our products to secure and retain similar support from leading surgeons and
other specialists, could have a material adverse effect on the market price of
our Common Stock and our business, financial condition and results of
operation.
Our marketing success also
depends largely upon arrangements with agents and distributors. Our success
depends upon our agents' and distributors' sales and service expertise and
their relationships with the customers in the marketplace. Our failure to
maintain relationships with our agents and distributors for marketing our
products could have an adverse effect on the market price of our Common Stock
and our business, financial condition and results of operations.
If
our medical specialist consultants and practitioners do not continue their
relationships with us, we may be unable to develop, design and test new medical
devices, enhance our existing medical devices or educate the public about our
products and services.
We have relationships with
medical specialists who provide professional consultative services to us in
their areas of specialization. The consultants test and evaluate our products,
speak for us at symposiums and professional meetings, disseminate information
and generally participate in the development of our
7
products
and services. We also rely on practitioners in various parts of the country to
act as field evaluators of our products. If these arrangements terminate, our
ability to develop, design and test new medical devices or enhancements to our
existing medical devices, and our ability to operate successfully, could be
materially and adversely affected. We cannot assure you that we will be
successful in maintaining or renewing our relationships with these medical
specialists and practitioners.
The
nature of our business could subject us to potential product liability and
other claims.
The sale of orthotic and
prosthetic products and other biomechanical devices as well as skincare
products entails the potential risk of physical injury to patients and other
end users and an inherent risk of product liability, lawsuits and product
recalls. We currently maintain product liability insurance with coverage limits
of $10 million per occurrence and an annual aggregate maximum of
$10 million subject to a deductible of $25,000. However, we cannot assure
you that this coverage would be sufficient to cover the payment of any
potential claim. In addition, we cannot assure you that this or any other
insurance coverage will continue to be available or, if available, will be
obtainable at a reasonable cost. Our existing product liability insurance
coverage may be inadequate to protect us from any liabilities we might incur,
and we will continue to be exposed to the risk that our claims may be excluded
and that our insurers may become insolvent. A product liability claim or series
of claims brought against us for uninsured liabilities or liabilities in excess
of our insurance coverage could have a material adverse effect on the market
price of our Common Stock, business, financial condition and results of
operations. In addition, as a result of a product liability claim, our
reputation could be harmed and we may have to recall some of our products,
which could result in significant costs to us and have a material adverse
effect on the market price of our Common Stock and our business, financial
condition and results of operations.
Health
care regulations or health care reform initiatives could both materially and
adversely affect the market price of our Common Stock and our business,
financial condition and results of operations.
We are subject to
governmental regulation and supervision in the United States—at the federal and
state levels—and abroad. These regulations include FDA regulations and those
regarding Medicare, Medicaid and physician self-referrals. These regulations
are far-reaching, and we may be required to alter one or more of our practices
to be in compliance with these laws. For example, we may be required to obtain
regulatory approvals and otherwise comply with regulations regarding safety,
quality and efficacy standards. If we fail to obtain such approvals and
otherwise comply with applicable regulatory requirements that could result in
government authorities taking punitive actions against us, including, among
other things, imposing fines and penalties on us or preventing us from
manufacturing or selling our products. Health care fraud and abuse regulations
are complex, and even minor, inadvertent irregularities in submissions can
potentially give rise to claims that the statute has been violated. Any violations
of these laws could result in a material adverse effect on the market price of
our Common Stock and our business, financial condition and results of
operations. We cannot assure you that these laws and regulations will not
change or be interpreted in the future in a manner which restricts or adversely
affects our business activities or relationships with providers of orthotic and
biomechanical products.
Changes
in government and other third-party payor reimbursement levels could
adversely affect our revenues and profitability.
Our products are sold by us through our network of
national, regional, independent and international distributors, hospitals,
doctors and other healthcare providers, many of whom are reimbursed for the
healthcare services provided to their patients by third-party payors,
such as government programs, including Medicare and Medicaid, private insurance
plans and managed care programs. Many of these programs set maximum
reimbursement levels for certain of the products sold by us in the United
States. We may be unable to sell our products through our distribution channels
on a profitable basis if third-party
8
payors deny coverage or
reduce their current levels of reimbursement, or if our costs of production
increase faster than increases in reimbursement levels. The percentage of our
sales dependent on Medicare or other insurance programs may increase as the
portion of the United States population over age 65 continues to grow, making
us more vulnerable to reimbursement level reductions by these organizations.
Reduced government reimbursement levels could result in reduced private payor
reimbursement levels because of indexing of Medicare fee schedules by certain
third-party payors. Furthermore, the healthcare industry is experiencing a
trend toward cost containment as government and private insurers seek to
contain healthcare costs by imposing lower reimbursement rates and negotiating
reduced contract rates with service providers.
Outside the United States,
reimbursement systems vary significantly by country. Many foreign markets have
government-managed health care systems that govern reimbursement for new
devices and procedures. The ability of hospitals supported by such systems to
purchase our products is dependent, in part, upon public budgetary constraints.
Canada and some European countries, for example, have tightened reimbursement
rates. If adequate levels of reimbursement from third-party payors
outside of the United States are not obtained, international sales of our
products may decline, which could adversely affect our net sales and could have
a material adverse effect on the market price of our Common Stock and our
business, financial condition and results of operations.
Our
business is subject to substantial government regulation relating to medical
products that could have a material adverse effect on our business.
Government regulation in the United States and other
countries is a significant factor affecting the research, development,
formulation, manufacture and marketing of our products. In the United States,
the FDA has broad authority to regulate the design, manufacture, formulation,
marketing and sale of medical devices, skincare, and other medical products,
and the Federal Trade Commission ("FTC") has broad authority over product
advertising. Overseas, these activities are subject to foreign governmental
regulation, which is in many respects similar to regulation in the United
States, but which vary from country to country. United States and foreign
regulation continues to evolve, which could result in additional burdens on our
operations. If we fail to comply with applicable regulations we may be subject
to, among other things, fines, suspension or withdrawal of regulatory
approvals, product recalls, operating restrictions and criminal prosecution.
Additionally, the cost of maintaining personnel and systems necessary to comply
with applicable regulations is substantial and increasing.
Some of our products may require or will require
regulatory approval prior to being marketed. The process of obtaining these
approvals can be lengthy and expensive. We may not be able to obtain or
maintain necessary approvals for testing or marketing our products. Moreover,
regulatory approvals, if granted, may include significant limitations on the
indicated uses for which our products may be marketed or other restrictions or
requirements that reduce the value to us of the products. Regulatory
authorities may also withdraw product approvals if we fail to comply with
regulatory standards or if any problems related to our products develop
following initial marketing. We are also subject to strict regulation with
respect to our manufacturing operations. This regulation includes testing,
control and documentation requirements, and compliance with current good
manufacturing practices is monitored through inspections by regulatory
authorities.
Our profitability depends,
in part, upon our and our distributors' ability to obtain and maintain all
necessary certificates, permits, approvals and clearances from United States
and foreign regulatory authorities and to operate in compliance with applicable
regulations. Delays in the receipt of, or failure to receive necessary
approvals, the loss of previously obtained approvals, or failure to comply with
existing or future regulatory requirements could have a material adverse effect
on the market price of our Common Stock and our business, financial condition
and results of operations.
9
Modifications
to our marketed devices may require FDA regulatory clearances or approvals and
may require us to cease marketing or recall the modified devices until such
clearances or approvals are obtained.
When required, the
products we market in the United States have been subjected to Pre-market
Notification requirements under Section 510(k) of the Federal Food
Drug & Cosmetics Act or were exempt from the 510(k) Pre-market
Notification process. We have modified some of our products and product
labeling since obtaining 510(k) clearance. If the FDA requires us to
submit a new 510(k) Pre-market Notification for modifications to our
existing products, we may be the subject of enforcement actions by the FDA and
be required to stop marketing the products while the FDA reviews the 510(k) Pre-market
Notification. If the FDA requires us to go through a lengthier, more rigorous
examination than we expect, our product introductions or modifications could be
delayed or canceled, which could cause our sales to decline or otherwise
adversely impact our growth. In addition, the FDA may determine that future
products will be subject to the more costly, lengthy and uncertain Pre-market
Approval, or "PMA," process. Products that are approved through the PMA process
generally need FDA approval before they may be modified.
Our
products may be subject to product recalls even after receiving clearance or
approval, which could harm our reputation and our business.
The FDA and foreign
regulatory authorities have the authority to request and, in some cases,
require the recall of products in the event of material deficiencies, design
defects or manufacturing defects. A government-mandated or voluntary
recall by us could occur as a result of component failures, manufacturing
errors, design defects or any other incidents related to our medical devices,
including, but not limited to, adverse event recalls, cease and desist
communications and any other product liability issues related to our medical
devices. Any product recall would divert managerial and financial resources and
could harm our reputation with customers and our business.
If we
fail to comply with the FDA's Quality System Regulation, our manufacturing
could be delayed, and our product sales and profitability could suffer.
Our manufacturing
processes are required to comply with the FDA's Quality System Regulation,
which covers the procedures concerning (and documentation of) the design,
testing, production processes, controls, quality assurance, labeling,
packaging, storage and shipping of our devices. We also are subject to state
requirements and licenses applicable to manufacturers of medical devices. In
addition, we must engage in extensive recordkeeping and reporting and must make
available our manufacturing facilities and records for periodic unscheduled
inspections by governmental agencies, including the FDA, state authorities and
comparable agencies in other countries. Moreover, failure to pass a Quality
System Regulation inspection or to comply with these and other applicable
regulatory requirements could result in disruption of our operations and
manufacturing delays. Failure to take adequate corrective action could result
in, among other things, significant fines, suspension of approvals, seizures or
recalls of products, operating restrictions and criminal prosecutions. We
cannot assure you that the FDA or other governmental authorities would agree
with our interpretation of applicable regulatory requirements or that we have
in all instances fully complied with all applicable requirements. Any failure
to comply with applicable requirements could adversely affect our product sales
and profitability.
Loss
of the services of key management personnel could adversely affect our
business.
Our operations are
dependent upon the skill, experience and performance of a relatively small
group of key management and technical personnel, including our Chairman and
executive officers. The unexpected loss of the services of one or more of key
management and technical personnel could have a
10
material
adverse effect on the market price of our Common Stock and our business,
financial condition and results of operations.
Our
business, operating results and financial condition could be adversely affected
by litigation regarding our patents or other intellectual property rights.
The orthopedic,
orthotic, prosthetics and skincare product industries have experienced
extensive litigation regarding patents and other intellectual property rights,
and companies in this industry have used intellectual property litigation in an
attempt to gain a competitive advantage. Some of our products are presently,
and our products generally in the future may become, subject to patent
infringement claims (for a discussion of a current legal proceeding that we
believe concerns our Explorer Gel Liner line of products, or litigation or
interference proceedings declared by the United States Patent and Trademark
Office, or USPTO, or the foreign equivalents thereto to determine the priority
of inventions, by competitors or other companies. The defense and prosecution
of intellectual property suits, USPTO interference proceedings or the foreign
equivalents thereto and related legal and administrative proceedings are both
costly and time consuming. An adverse determination in litigation or
interference proceedings to which we may become a party could:
·
subject
us to significant liabilities to third parties;
·
require
disputed rights to be licensed from a third-party for royalties that may
be substantial;
·
require
us to cease manufacturing, using or selling such products or technology; or
·
result
in invalidation or loss of our patent rights.
Any one of these outcomes could have a material
adverse effect on the market price of our Common Stock and our business,
financial condition and results of operations. Furthermore, we may not be able
to obtain necessary licenses on satisfactory terms, if at all. Even if we are
able to enter into licensing arrangements, costs associated with these
transactions may be substantial and could include the long-term payment of
royalties. Accordingly, adverse determinations in a judicial or administrative
proceeding or our failure to obtain necessary licenses could prevent us from
manufacturing and selling our products or from using certain processes to make
such products, which would have a material adverse effect on the market price
of our Common Stock and our business, operating results and financial
condition. Moreover, even if we are successful in such litigation, the expense
of defending such claims could be material.
In addition, we may in the future need to litigate to enforce
our patents, to protect our trade secrets or know-how or to determine the
enforceability, scope and validity of the proprietary rights of others. Such
enforcement of our intellectual property rights could involve counterclaims
against us. Any future litigation or interference proceedings may result in
substantial expense to us and significant diversion of effort by our technical
and management personnel.
Intellectual property litigation relating to our
products or technology could also cause our customers or potential customers to
defer or limit their purchases of such products or technology, or cause
healthcare professionals, agents and distributors to cease or lessen their
support and marketing of our products.
In addition, in connection
with our acquisition of Silipos, we may be subject to the Potential Poly-Gel
Claims discussed under "Risk Factors—We may be adversely affected by legal
actions or proceedings," including intellectual property claims, brought by
Poly-Gel. For any of these potential claims, SSL has generally agreed to
indemnify us for losses up to $2.0 million, after which we would be liable
for any such claims. For claims arising out of conduct that occurs after the
closing of the Silipos transaction on September 30, 2004, we have agreed
to indemnify SSL against losses. We would expect to vigorously defend against
any claims brought by Poly-Gel. However, if such claims were brought, we may
not ultimately prevail.
11
We
may not be able to maintain the confidentiality, or assure the protection, of
our proprietary technology.
We hold a variety of patents, trademarks and
copyrights in several countries, including the United States, including
approximately 35 patents and patent applications in the U.S. and certain
foreign jurisdictions and a number of trademarks for technologies and brands
related to our product offerings. The ownership of a patent or an interest in a
patent does not always provide significant protection, and the patents and
patent applications in which we have an interest may be challenged as to their
validity or enforceability. Others may independently develop similar
technologies or design around the patented aspects of our technology.
Challenges may result in potentially significant harm to our business. We are
also dependent upon a variety of methods and technologies that we regard as
proprietary trade secrets. In addition, we have (i) a non exclusive, paid
up (except for certain administrative fees) license with Applied Elastomerics,
Incorporated (the "AEI License") dated as of November 30, 2001, as
amended, to manufacture and sell certain products using mineral oil based gels
under certain patents, during the life of such patents, and (ii) a license
with Gerald Zook (the "Zook License"), effective as of January 1, 1997, to
manufacture and sell certain products using mineral oil based gels under
certain patents and know how, during the life of such patents, in exchange for
sales based royalty payments, that is exclusive as to certain products but is
non exclusive as to others. We also have exclusive licenses to three types of
orthotic devices which are patented in the United States and several foreign
countries. We believe our trademarks and tradenames, including Langer
Ô
,
Sporthotics
Ô
, PPT
Ô
, Silipos
Ô
,
Explorer Gel Liner
Ô
, Siloliner
Ô
,
and Silopad
Ô
, contribute significantly to brand recognition
for our products, and the inability to use one or more of these names could
have a material adverse affect on our business. For the nine months ended September 30,
2005, revenues generated by the products incorporating the technology licensed
under the AEI License accounted for approximately 42.6% of our revenues.
We rely on a combination of trade secret, copyright,
patent, trademark, unfair competition and other intellectual property laws as
well as contractual agreements to protect our rights to such intellectual
property. Due to the difficulty of monitoring unauthorized use of and access to
intellectual property, however, such measures may not provide adequate
protection. There can be no assurance that courts will always uphold our
intellectual property rights, or enforce the contractual arrangements that we
have entered into to protect our proprietary technology and trade secrets.
Further, although
we seek to protect our trade secrets, know-how and other unpatented proprietary
technology, in part, with confidentiality agreements with certain of our
employees and consultants, we cannot assure you that:
·
these
confidentiality agreements will not be breached;
·
we
will have adequate remedies for any breach;
·
we
will not be required to disclose such information to the FDA or other
governmental agency in order for us to have the right to market a product; or
·
trade
secrets, know-how and other unpatented proprietary technology will not otherwise
become known to or independently developed by our competitors.
12
Any finding of unenforceability, invalidity, non-infringement
or misappropriation of our intellectual property could have a material adverse
effect on the market price of our Common Stock and our business, financial
condition and results of operations. In addition, if we bring or become subject
to litigation to defend against claimed infringement of our rights or of the
rights of others or to determine the scope and validity of our intellectual
property rights, such litigation could result in substantial costs and
diversion of our resources. Unfavorable results in such litigation could also
result in the loss or compromise of our proprietary rights, subject us to
significant liabilities, require us to seek licenses from third parties, or
prevent us from selling our products, which could have a material adverse
effect on the market price of our Common Stock, and our business, financial
condition and results of operations.
In
addition, our licenses, including the AEI License and the Zook License, could
be terminated under a variety of circumstances including for material breach of
the license agreements or in the event of the bankruptcy or insolvency of the
licensor. Any such termination could have a material adverse effect on the
market price of our Common Stock and our business, financial condition and
results of operations.
A portion
of our revenues and expenditures is subject to exchange rate fluctuations that
could adversely affect our reported results of operations.
While a
majority of our business is denominated in United States dollars, we maintain
operations in foreign countries, primarily the United Kingdom and Canada, that
require payments in the local currency and payments received from customers for
goods sold in these countries are typically in the local currency.
Consequently, fluctuations in the rate of exchange between the United States
dollar and certain other currencies may affect our results of operations and
period-to-period comparisons of our operating results. For example, the value
of the U.S dollar has fallen over the last year relative to the British pound
and the Canadian dollar (which are the principal foreign currencies material to
our business) causing an increase in our reported revenues when we convert the
higher valued foreign currencies into U.S. dollars. If the value of the
U.S. dollar were to increase in relation to those currencies in the future,
there could be a negative effect on the value of our sales in those markets
when we convert amounts to dollars when we prepare our financial statements. We
do not currently engage in hedging or similar transactions to reduce these
risks.
We
may be liable for contamination or other harm caused by hazardous materials
that we use.
Our research and
development and manufacturing processes involve the use of hazardous materials.
We are subject to federal, state and local regulation governing the use,
manufacture, handling, storage and disposal of hazardous materials or waste. We
cannot completely eliminate the risk of contamination or injury resulting from
hazardous materials or waste, and we may incur liability as a result of any
contamination or injury. In addition, under some environmental laws and
regulations, we could also be held responsible for all of the costs relating to
any contamination at our past or present facilities and at third-party
waste disposal sites even if such contamination was not caused by us. We may
incur significant expenses in the future relating to any failure to comply with
environmental laws. Any such future expenses or liability could have a
significant negative impact on our business, financial condition and results of
operations.
Our
quarterly operating results are subject to fluctuations.
Our revenue and operating results have fluctuated and
may continue to fluctuate from quarter to quarter due to seasonal factors and
for other reasons. Revenues derived from our sales of orthotic devices have
historically been significantly higher in North America in the warmer months of
the year, while our sales of orthotic devices in the United Kingdom have not
historically experienced seasonality. We believe that this seasonality in North
America results from the portion of our orthotics sales comprised of custom
sandals which tend to be higher in the spring and summer months. Our experience
has also been that physical activities in general tend to increase in warmer
weather and that many patients of our customers
13
in the healthcare
profession tend to defer healthcare purchases until the spring months.
Similarly, Silipos' business is also subject to some seasonality. Other factors
which can result in quarterly variations include the timing and amount of new
business generated by us, the timing of new product introductions, our revenue
mix, acquisitions, the timing of additional selling and general and
administrative expenses to support the anticipated growth and development of
new business units and the competitive and fluctuating economic conditions in
the orthopedic industry.
Quarter-to-quarter
comparisons of our operating results are not necessarily meaningful and should
not be relied upon as indications of likely future performance or annual
operating results. Reductions in revenues or net income between quarters could
result in a decrease in the market price of our Common Stock.
We
may be unable to realize the benefits of our net operating loss ("NOL")
carryforwards.
NOLs may be carried forward to offset federal and
state taxable income in future years and eliminate income taxes otherwise
payable on such taxable income, subject to certain adjustments. Based on
current federal corporate income tax rates, our NOL could provide a benefit to
us, if fully utilized, of significant future tax savings. However, our ability
to use these tax benefits in future years will depend upon the amount of our
otherwise taxable income. If we do not have sufficient taxable income in future
years to use the tax benefits before they expire, we will lose the benefit of
these NOL carryforwards permanently. Additionally, future utilization of net
operating losses will be limited under existing tax law due to the change in
control of Langer in 2001 and may be further limited as a result of this
offering.
The amount of NOL
carryforwards that we have claimed has not been audited or otherwise validated
by the U.S. Internal Revenue Service (the "IRS"). The IRS could challenge our
calculation of the amount of our NOL or any deductions or losses included in
such calculation, and provisions of the Internal Revenue Code may limit our
ability to carry forward our NOL to offset taxable income in future years. If
the IRS were successful with respect to any challenge in respect of the amount
of our NOL, the potential tax benefit of the NOL carryforwards to us could be
substantially reduced.
The
recent changes in accounting standards regarding stock option plans could limit
the desirability of granting stock options, which could harm our ability to
attract and retain employees, and could also negatively impact our results of
operations.
A recent change in
accounting standards is requiring all public companies to treat the fair value
of stock options granted to employees as an expense effective as of the
beginning of the first fiscal year beginning after June 15, 2005. When
this change becomes mandatory, we and other companies will be required to
record a compensation expense equal to the fair value of each stock option
granted. Currently, we are generally not required to record compensation
expense in connection with stock option grants. When we are required to expense
the fair value of stock option grants, it may reduce the attractiveness to us
of granting stock options because of the additional expense associated with
these grants, which would negatively impact our reported results of operations.
For example, had we been required to expense stock option grants by applying
the measurement provisions of Statement of Financial Accounting Standards No. 123,
"Accounting for Stock-Based Compensation," our recorded net income for
the nine months ended September 30, 2005 of approximately $423,000 would
have been reduced by approximately $517,000, to a net loss of approximately
$94,000 and our recorded net income for the year ended December 31, 2004
of approximately $375,000 would have been reduced by approximately $521,000, to
a net loss of approximately $146,000 and our recorded net loss for the year
ended December 31, 2003 of approximately $5,000 would have been increased
by approximately $147,000, to a net loss of approximately $152,000 and our net
loss for the year ended December 31, 2002 of approximately $1,106,000
would have been increased by approximately $58,000, to a net loss of
approximately $1,164,000, net of compensation recognized from acceleration of
option, net of tax. Nevertheless, stock options are an important employee
14
recruitment
and retention tool, and we may not be able to attract and retain key personnel
if we reduce the scope of our employee stock option program. Accordingly, when
we are required to expense stock option grants, our future results of
operations will be negatively impacted, as could our willingness to use stock
options as an employee recruitment and retention tool.
Risks Related to Our Common Stock
One
stockholder has the ability to significantly influence the election of our
directors and the outcome of corporate action requiring stockholder approval.
As of December 23, 2005, Warren B. Kanders,
our Chairman of the Board of Directors, in his capacity as sole manager and
voting member of Langer Partners, LLC and the sole stockholder of Kanders &
Company, Inc., may be deemed to be the beneficial owner of 2,638,523
shares, or approximately 24.1% of our outstanding Common Stock.
As of December 23, 2005, current executive
officers and directors, including Mr. Kanders, beneficially own an
aggregate of 5,087,939 shares, or approximately 42.7% of our outstanding Common
Stock.
Consequently, Mr. Kanders, acting alone or
together with our other officers and directors, has the ability to
significantly influence all matters requiring stockholder approval, including
the election of our directors and the outcome of corporate actions requiring
stockholder approval, such as a change in control. Mr. Kanders,
Andrew H. Meyers, our President, Chief Executive Officer and director, and
Gregory R. Nelson, our Board of Directors member, participated in the February 2001
tender offer by which Langer Partners, LLC became our largest stockholder.
Except for Mr. Kanders, our entire current Board of Directors was
designated by Langer Partners, LLC in 2001 following the tender offer.
Langer Partners, LLC is
party to an agreement with Oracle Investment Management, Inc. ("Oracle"),
the beneficial owner of some of our outstanding 4% convertible subordinated
notes due August 31, 2006. Pursuant to the agreement, Langer Partners
agreed not to, without the prior written consent of Oracle, sell, assign,
pledge or otherwise transfer any shares of our Common Stock owned by Langer
Partners until such time as Oracle sells or otherwise transfers one-third or
more of the 4% convertible subordinated notes held by it, or shares of Common
Stock received upon conversion of the notes. Oracle has not converted or
transferred any of the 4% convertible subordinated notes to date. Oracle is
considered to beneficially own 6.3% of our outstanding Common Stock. Langer
Partners further agreed with Oracle to vote all shares of Common Stock owned by
Langer Partners in favor of so many nominees of Oracle to our Board of
Directors as is equal, on a percentage basis, to the aggregate percentage of
our Common Stock owned by Oracle on a fully diluted basis. Under this
arrangement, we believe Oracle would be currently entitled to designate one
Board nominee pursuant to this right. However, Oracle has not to date nominated
a director.
The
price of our Common Stock has been and is expected to continue to be volatile,
which could affect a stockholder's return on investment.
There has been significant
volatility in the stock market and in particular in the market price and
trading volume of securities of orthopedic and other health care companies,
which has often been unrelated to the performance of the companies. The market
price of our Common Stock has been subject to significant fluctuations, and we
expect it to continue to be subject to such fluctuations for the foreseeable
future. We believe the reasons for these fluctuations include, in addition to
general market volatility, the relatively thin level of trading in our stock,
and our relatively low public float. Therefore, variations in financial
results, announcements of material events, technological innovations or new
products by us or our competitors, our quarterly operating results, changes in
general conditions in the economy or the health care industry, other
developments affecting us or our competitors or general price
15
and
volume fluctuations in the market are among the many factors that could cause
the market price of our Common Stock to fluctuate substantially.
Shares
of our Common Stock have been thinly traded in the past.
Although a trading market
for our Common Stock exists, the trading volume has not been significant and
there can be no assurance that an active trading market for our Common Stock
will develop or, if developed, be sustained in the future. As a result of the
thin trading market or "float" for our stock, the market price for our Common
Stock may fluctuate significantly more than the stock market as a whole.
Without a large float, our Common Stock is less liquid than the stock of
companies with broader public ownership and, as a result, the trading prices of
our Common Stock may be more volatile. In the absence of an active public
trading market, an investor may be unable to liquidate his investment in our
Common Stock. Trading of a relatively small volume of our Common Stock may have
a greater impact on the trading price for our stock than would be the case if
our public float were larger. We cannot predict the prices at which our Common
Stock will trade in the future.
We
may issue a substantial amount of our Common Stock in the future, which could
cause dilution to new investors and otherwise adversely affect our stock price.
A key element of our
growth strategy is to make acquisitions. As part of our acquisition strategy,
we may issue additional shares of Common Stock as consideration for acquisitions.
These issuances could be significant. To the extent that we make acquisitions
and issue our shares of Common Stock as consideration, your equity interest in
us will be diluted. Any such issuance will also increase the number of
outstanding shares of Common Stock that will be eligible for sale in the
future. Persons receiving shares of our Common Stock in connection with these
acquisitions may be more likely to sell off their Common Stock than investors
purchasing in this offering, which may influence the price of our Common Stock.
In addition, the potential issuance of additional shares in connection with
anticipated acquisitions could lessen demand for our Common Stock and result in
a lower price than might otherwise be obtained. We may issue Common Stock in
the future for other purposes as well, including in connection with financings,
for compensation purposes, in connection with strategic transactions or for
other purposes.
We
have a significant amount of convertible indebtedness outstanding and may issue
a substantial amount of our Common Stock in connection with these and other
outstanding securities and in connection with future acquisitions and our
growth plans; any such issuances of additional shares could adversely affect
our stock price.
On October 31, 2001, we sold $14,589,000 of our
4% convertible subordinated notes due August 31, 2006 in a private
placement. In June 2005, $150,000 notes were converted into 25,000 shares
of common stock. The remaining notes are convertible at any time into approximately
2,406,500 shares of our Common Stock, at a conversion price of $6.00 per share,
subject to adjustment in certain circumstances. The conversion of our 4%
convertible subordinated notes could result in dilution in the value of the
shares of our outstanding stock and the voting power represented thereby. The
effect of the conversion of all of our outstanding 4% convertible subordinated
notes due August 31, 2006 would be to increase outstanding shares and
dilute current shareholders by approximately 19.6% at December 23, 2005.
In addition, the conversion price of our notes may be lowered under the
conversion price adjustment provisions of the notes in certain circumstances,
including if we issue Common Stock at a net price per share less than the conversion
price then in effect or if we issue rights, warrants or options entitling the
recipients to subscribe for or purchase shares of our Common Stock at a price
per share less than the conversion price (after taking into account any
consideration we received for such rights, warrants or options). A reduction in
the conversion price may result in the issuance of an additional number of
shares upon the conversion of our notes. We also have a significant number of
stock options and warrants outstanding.
16
We anticipate issuing
additional shares of our Common Stock and may also issue additional securities
convertible into or exercisable or exchangeable for Common Stock to finance
acquisitions or for other reasons in the future. The number of outstanding shares
of our Common Stock that will be eligible for sale in the future is, therefore,
likely to increase substantially. Persons receiving shares of our Common Stock
in connection with these acquisitions or financings may be more likely to sell
large quantities of their Common Stock, which may adversely affect the price of
our Common Stock. In addition, the potential issuance of additional shares in
connection with anticipated acquisitions could lessen demand for our Common
Stock and result in a lower price than would otherwise be obtained. If our
security holders sell substantial amounts of our Common Stock in the public
market following this offering, the market price of our Common Stock could
fall. These sales might make it more difficult for us to sell equity or equity-related
securities in the future at a time and price that we deem appropriate and may
require us to issue greater amounts of our Common Stock to finance
acquisitions. Additional shares sold to finance acquisitions and conversions,
exercises and exchanges of other securities for Common Stock may also dilute
our earnings per share.
Our
certificate of incorporation, our bylaws and Delaware law contain provisions
that could discourage, delay or prevent a takeover attempt.
We are subject to the anti-takeover provisions of Section 203
of the Delaware General Corporation Law. In general, Section 203 prohibits
publicly-held Delaware corporations to which it applies from engaging in a "business
combination" (generally including mergers, consolidations and sales of 10% or
more of the corporation's assets) with an "interested stockholder" (generally
defined as a person owning 15% or more of the outstanding voting stock of the
corporation, subject to certain exceptions) for a period of three years after
the date of the transaction in which the person became an interested
stockholder, unless the business combination is approved in a prescribed
manner. This provision could discourage others from bidding for our shares and
could, as a result, reduce the likelihood of an increase in our stock price
that would otherwise occur if a bidder sought to buy our stock.
It could also discourage, delay or prevent another
company from merging with us or acquiring us, even if our stockholders were to
consider such a merger or acquisition to be favorable.
Additionally, our Board of
Directors has the authority to issue up to 250,000 shares of preferred stock,
and to determine the price, rights, preferences and restrictions, including
voting and conversion rights, of those shares without any further action or
vote by the stockholders. The rights of the holders of Common Stock will be
subject to, and may be adversely affected by, the rights of the holders of
preferred stock that may be issued in the future. Such provisions could adversely
affect the holders of Common Stock in a variety of ways, including by
potentially discouraging, delaying or preventing a takeover of us and by
diluting our earnings per share.
We do
not expect to pay dividends in the foreseeable future.
We currently do not intend
to pay any dividends on our Common Stock. We currently intend to retain any
earnings for working capital, repayment of indebtedness, capital expenditures
and general corporate purposes.
FOR ALL
OF THE FOREGOING REASONS AND OTHERS SET FORTH IN THIS PROSPECTUS, THE
SECURITIES OFFERED HEREBY INVOLVE A HIGH DEGREE OF RISK. ANY PERSON CONSIDERING
AN INVESTMENT IN THE SECURITIES OFFERED HEREBY SHOULD BE AWARE OF THESE AND
OTHER FACTORS SET FORTH IN THIS PROSPECTUS. THE SECURITIES SHOULD BE PURCHASED ONLY
BY PERSONS WHO CAN AFFORD A TOTAL LOSS OF THEIR INVESTMENT IN THE COMPANY.
17
FORWARD-LOOKING STATEMENTS
This Prospectus, as well as information incorporated
by reference in this Prospectus, contains forward-looking statements that
involve risks and uncertainties. Some of the forward-looking statements appear
under "Risk Factors."  These statements
relate to future events of our future financial performance. In some cases you
can identify forward-looking statements by terminology such as "may," "would," "will,",
"should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts,"
"potential," "continue," or the negative of these terms or other comparable
terminology. These statements are only predictions. Actual events or results
may differ materially. In evaluating these statements, you should specifically
consider various factors, including the risks outlined in the Risk Factors
section of this Prospectus. These factors may cause our actual results to
differ materially from any forward-looking statement. Although we believe that
the expectations reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or
achievements.
18
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The Securities and
Exchange Commission (the "Commission") pursuant to the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), allows us to "incorporate by
reference" the documents we file with it, which means that we can disclose
important business, financial and other information to you in this Prospectus
by referring you to the publicly filed documents containing this information. The
information incorporated by reference is deemed to be a part of this
Prospectus, except for any information deemed furnished, superseded by
information contained in this Prospectus or filed later by us with the
Commission. This Prospectus incorporates by reference the documents set forth
below that we have previously filed with the Commission, which documents
contain important information about Langer and our Common Stock:
(a)
The
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2004, filed pursuant to the Securities Exchange Act of 1934;
(b)
Amendment
No. 7 to the Company's Registration Statement under the Securities Act of
1933 on Form S-1, filed on June 3, 2005;
(c)
The
Company's Quarterly Report on Form 10-Q for the quarterly period
ended September 30, 2005, filed pursuant to the Exchange Act;
(d)
Amendment
No. 1 to the Company's Quarterly Report on Form 10-Q/A for the
quarterly period ended June 30, 2005, filed pursuant to the Exchange Act;
(e)
The
Company's Quarterly Report on Form 10-Q for the quarterly period
ended June 30, 2005, filed pursuant to the Exchange Act;
(f)
Amendment
No. 1 to the Company's Quarterly Report on Form 10-Q/A for the
quarterly period ended March 31, 2005, filed pursuant to the Exchange Act;
(g)
The
Company's Quarterly Report on Form 10-Q for the quarterly period
ended March 31, 2005, filed pursuant to the Exchange Act;
(h)
The
Company's Current Report on Form 8-K, Date of Event—December 22,
2005, filed on December 23, 2005, pursuant to the Exchange Act;
(i)
The
Company's Current Report on Form 8-K, Date of Event—December 20,
2005, filed on December 27, 2005, pursuant to the Exchange Act;
(j)
The
Company's Current Report on Form 8-K, Date of Event—December 19,
2005, filed on December 22, 2005, pursuant to the Exchange Act;
(k)
The
Company's Current Report on Form 8-K, Date of Event—November 23,
2005, filed on November 30, 2005, pursuant to the Exchange Act;
(l)
The
Company's Current Report on Form 8-K, Date of Event—November 18,
2005, filed on November 21, 2005, pursuant to the Exchange Act;
(m)
The
Company's Current Report on Form 8-K, Date of Event—November 8,
2005, filed on November 15, 2005, pursuant to the Exchange Act;
(n)
The
Company's Current Report on Form 8-K, Date of Event—November 7,
2005, filed on November 14, 2005, pursuant to the Exchange Act;
(o)
The
Company's Current Report on Form 8-K, Date of Event—September 30,
2005, filed on October 6, 2005, pursuant to the Exchange Act;
(p)
The
Company's Current Report on Form 8-K, Date of Event—September 15,
2005, filed on September 20, 2005, pursuant to the Exchange Act;
(q)
The
Company's Current Report on Form 8-K, Date of Event—September 8,
2005, filed on September 9, 2005, pursuant to the Exchange Act;
19
(r)
The
Company's Current Report on Form 8-K, Date of Event—September 1,
2005, filed on September 8, 2005, pursuant to the Exchange Act;
(s)
The
Company's Current Report on Form 8-K, Date of Event—August 15,
2005, filed on August 15, 2005, pursuant to the Exchange Act;
(t)
The
Company's Current Report on Form 8-K, Date of Event—July 13,
2005, filed on July 13, 2005, pursuant to the Exchange Act;
(u)
The
Company's Current Report on Form 8-K, Date of Event—June 23,
2005, filed on June 28, 2005, pursuant to the Exchange Act;
(v)
The
Company's Current Report on Form 8-K, Date of Event—June 10,
2005, filed on June 15, 2005, pursuant to the Exchange Act;
(w)
The
Company's Current Report on Form 8-K, Date of Event—May 23,
2005, filed on May 24, 2005, pursuant to the Exchange Act;
(x)
The
Company's Current Report on Form 8-K, Date of Event—March 31,
2005, filed on April 5, 2005, pursuant to the Exchange Act;
(y)
The
Company's Current Report on Form 8-K, Date of Event—March 30,
2005, filed on March 31, 2005, pursuant to the Exchange Act;
(z)
The
Company's Current Report on Form 8-K/A, Date of Event—September 30,
2004, filed on February 11, 2005, pursuant to the Exchange Act;
(aa)
The
Company's Current Report on Form 8-K, Date of Event—January 28,
2005, filed on February 2, 2005, pursuant to the Exchange Act;
(bb)
Amendment
No. 1 to Definitive Proxy Statement dated May 24, 2005, relating to
the annual meeting of stockholders held on June 23, 2005; and
(cc)
The
description of the Company's Common Stock contained in the Company's
Registration Statement on Form 8-A (Reg. No. 000-12991),
filed with the Commission as of July 3, 2002 by the Company to register
such securities under the Exchange Act, including all amendments and reports
filed for the purpose of updating that description.
All of such documents are on file with the Commission.
In addition, all documents filed by us pursuant to Sections 13(a), 13(c), 14
and 15(d) of the Exchange Act, subsequent to the date of this Prospectus
and prior to termination of the offering are incorporated by reference in this
Prospectus and are a part hereof from the date of filing of such documents. Any
statement contained in a document incorporated or deemed to be incorporated by
reference herein shall be deemed to be modified or superseded for purposes of
this Prospectus to the extent that a statement contained herein or in any
subsequently filed document that is also incorporated by reference herein
modifies or replaces such statement. Any statements so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part
of this Prospectus.
This Prospectus incorporates herein by reference
important business and financial information about us that is not included in
or delivered with this Prospectus. This information is available to you without
charge upon written or oral request. If you would like a copy of any of this
information, please submit your request to us at Langer, Inc., 450 Commack Road, Deer Park, New York 11729-4510,
Attention: Secretary, or call (631) 667-1200.
You should rely only on the information incorporated
by reference or provided in this Prospectus or any Prospectus supplement. We
have not authorized anyone else to provide you with different information. You
should not assume that the information in this Prospectus or any Prospectus
supplement is accurate as of any date other than the date on the front page of
those documents.
20
COMPANY OVERVIEW
We design, manufacture and distribute a broad range of
medical products targeting the orthopedic, orthotic and prosthetic markets. We
also offer a diverse line of skincare products for the medical, therapeutic and
retail markets. We sell our products primarily in the United States and Canada,
as well as in more than 30 other countries, to national, regional,
international and independent medical distributors and directly to healthcare
professionals.
Our broad range of over 500 orthopedic products,
including custom foot and ankle orthotic devices, pre-fabricated foot products,
rehabilitation products and gel-based orthopedic and prosthetics products, are
designed to correct, protect, heal and provide comfort for the patient. Our
line of over 50 skincare products, which include scar management products and
gel-based therapeutic gloves and socks, is designed to improve skin appearance
and transmit moisture agents, vitamins and nutrients to the skin.
Since February 2001,
we have consummated the following three acquisitions:
• Silipos.
On September 30, 2004, we acquired
  Silipos, Inc., our largest acquisition to date, from SSL International
  plc ("SSL"). Silipos is a leading designer, manufacturer and marketer of
  gel-based products focusing on the orthopedic, orthotic, prosthetic, and
  skincare markets. We acquired Silipos because of its distribution channels
  and proprietary products, and to enable us to expand into additional product
  lines that are part of our market focus.
• Bi-Op.
On January 13,
  2003, we acquired Bi-Op Laboratories, Inc., which is engaged in the
  design, manufacture, and sale of footwear and foot orthotic devices as well
  as orthotic and prosthetic services. We acquired Bi-Op to gain access to
  additional markets and complementary product lines.
• Benefoot.
On May 6, 2002, we
  acquired the net assets of Benefoot, Inc., and Benefoot Professional
  Products, Inc. (together, "Benefoot"). Benefoot designs, manufactures
  and distributes custom orthotics, custom Birkenstock
®
sandals,
  therapeutic shoes, and prefabricated orthotic devices to healthcare
  professionals. We acquired Benefoot to gain additional scale in our core
  custom orthotics business as well as to gain access to complementary product
  lines.
We sell our products directly to health care
professionals and also to wholesale distributors. Custom orthotic products are
primarily sold directly to health care professionals. Other products sold in
our orthopedic business are sold both directly to health care professionals and
to distributors. As a result of our acquisition of Silipos, the percentage of
our orthopedic products sold through distributors has increased. Products sold
in our skincare business are sold primarily to wholesale distributors. Silipos
historically sold most of its products (both orthopedic and skincare) through
distributors. Revenue from product sales is recognized at the time of shipment.
Our most significant expense is cost of sales. Cost of sales consists of materials,
direct labor and overhead and related shipping costs. General and
administrative expenses consist of executive, accounting, and administrative
salaries and related expenses, insurance, pension expenses, bank service
charges, stockholder relations, and amortization of identifiable intangibles
with definite lives. Selling expenses consist of advertising, promotions,
commissions, conventions, postage, travel and entertainment, and sales and
marketing salaries and related expenses.
* * *
Our principal executive
offices are located at 450 Commack Road,
Deer Park, New York 11729-4510.
21
USE OF PROCEEDS
The Company will not
realize any proceeds from the sale of the Common Stock which may be sold
pursuant to this Prospectus for the respective accounts of the Selling
Stockholders. The Company, however, will derive proceeds upon the exercise of
the options granted to Selling Stockholders. All such proceeds will be
available to the Company for working capital and general corporate purposes. No
assurances can be given, however, as to when or if any or all of the options
will be exercised.
SELLING STOCKHOLDERS
This Prospectus relates to Shares that are being
registered for reoffers and resales by Selling Stockholders who have acquired
or may acquire Shares pursuant to each of the Plans. The Selling Stockholders
may resell any or all of the Shares at any time they choose while this
Prospectus is effective.
Executive officers and directors, their family
members, trusts for their benefit, or entities that they own, that acquire
Common Stock under the Plans, may be added to the Selling Stockholder list
below by a Prospectus supplement filed with the Commission. The number of
Shares to be sold by any Selling Stockholder under this Prospectus also may be
increased or decreased by a Prospectus supplement. Non-affiliates who purchased
restricted securities, as these terms are defined in rule 144(a) under
the Securities Act, under any of our 2005 Incentive Plan and who are not named
below may use this Prospectus for the offer or sale of their Common Stock if
they hold 1,000 shares or less. Although a person's name is included in the
table below, neither that person nor we are making an admission that the named
person is our "affiliate."
Each of the Selling
Stockholders is an employee or director or former director of the Company. The
following table sets forth:
·
the
name and principal position or positions over the past three years with the
Company of each Selling Stockholder;
·
the
number of shares of Common Stock each Selling Stockholder beneficially owned as
of December 23, 2005;
·
the
number of shares of Common Stock acquired by each Selling Stockholder in
connection with  stock options and stock
grants pursuant to the Plans and being registered under this Registration
Statement, some or all of which shares may be sold pursuant to this Prospectus;
and
·
the
number of shares of Common Stock and the percentage, if 1% or more, of the
total class of Common Stock outstanding to be beneficially owned by each
Selling Stockholder following this offering, assuming the sale pursuant to this
offering of all shares acquired by such Selling Stockholder in connection with
grants pursuant the Plans and registered under this Registration Statement.
There is no assurance that
any of the Selling Stockholders will sell any or all of the shares offered by
them under this Registration Statement. The address of each Selling Stockholder
is c/o Langer, Inc., 450 Commack Road, Deer Park, New York 11729-4510.
22
Name of Seller
Relationships to
the Company
Number of
Shares
Beneficially
Owned(1)
Shares to
be Sold(2)
Number of
Shares to be
Beneficially
Owned After
the Offering
Percentage of
Common Stock
to be
Beneficially
Owned After
the Offering(1)
Warren B. Kanders
Director
2,638,523
(3)
515,000
2,123,523
20.4
%
Andrew H. Meyers
Director,
  President and
Chief Executive Officer
1,077,580
(4)
0
1,077,580
10.7
%
W. Gray Hudkins
Chief
  Operating Officer
360,300
(5)
360,300
0
*
Joseph P. Ciavarella
Chief
  Financial Officer
160,000
(6)
160,000
0
*
Burtt R. Ehrlich
Director
242,783
(7)
96,376
146,407
1.5
%
Arthur Goldstein
Director
137,496
(8)
96,376
41,120
*
Jonathan R. Foster
Director
61,960
—
61,960
*
Gregory R. Nelson
Director
241,597
(11)
43,876
197,721
2.0
%
Stuart P. Greenspon
Director
167,700
(9)
37,500
130,200
1.3
%
*
Less than 1%
(1)
Based on 9,893,623 shares of Common Stock outstanding
as of December 23, 2005. As used in this table, a beneficial owner of a
security includes any person who, directly or indirectly, through contract,
arrangement, understanding, relationship or otherwise has or shares (a) the
power to vote, or direct the voting of, such security or (b) investment
power which includes the power to dispose, or to direct the disposition of,
such security. In addition, a person is deemed to be the beneficial owner of a
security if that person has the right to acquire beneficial ownership of such
security within 60 days.
(2)
Represents the maximum number of Shares issued under
each of the Plans that could be sold under this Prospectus if the holder sold
all of his or her Shares, exercised all of his or her options when vested and
sold the underlying Shares. Does not constitute a commitment to sell any or all
of the stated number of Shares. The number of Shares to be sold shall be
determined from time to time by each Selling Stockholder in his or her
discretion.
(3)
Includes 100,000 options granted to Kanders &
Company, Inc. that are presently exercisable or exercisable within the
next 60 days, 515,000 options granted to Mr. Kanders that are presently
exercisable or exercisable within the next 60 days, 1,491,856 shares held by
Langer Partners, LLC, and 416,667 shares of Common Stock acquirable upon of
notes held by Langer Partners, LLC. Mr. Kanders is the sole voting member
and sole manager of Langer Partners, LLC and the sole stockholder of Kanders &
Company, Inc. Also includes warrants to purchase 15,000 shares that are
presently exercisable or exercisable within the next 60 days. Includes
100,000 shares of restricted stock, which are subject to a lock-up agreement
that expires on September 1, 2008. Of the 515,000 options described above,
435,000 options are subject to a lock-up agreement, which expires with respect
to 80,000 shares on each of November 12, 2006 and 2007, 91,666 shares on April 1,
2008, and 91,667 shares on each of April 1, 2009 and 2010. Does not
include 98,333 shares of Common Stock acquirable upon conversion of $590,000
principal amount of our 4% convertible subordinated notes due August 31,
2006 held by members of Mr. Kanders' extended family, as to which he
disclaims beneficial ownership.
(4)
Includes 175,000 options held by Mr. Meyers that
are presently exercisable or exercisable within the next 60 days.
(5)
Includes 337,500 options granted to Mr. Hudkins
that are presently exercisable or exercisable within the next 60 days, and 22,800
shares of restricted stock that have vested. Of the 337,500 options, 287,500
shares are subject to a lock-up agreement, which expires with respect to 50,000
shares on each of November 12, 2006 and 2007, 45,833 shares on each of December 31,
2007 and 2008, 45,834 shares on December 31, 2009, 16,667 shares on each
of April 1, 2008 and 2009, and 16,666 shares on April 1, 2010. Mr. Hudkins
was originally awarded 40,000 shares of restricted stock, all of which was
vested as of December 20, 2005. On December 23, 2005, Mr. Hudkins surrendered
17,200 shares of such restricted stock to the Company to satisfy his obligation
to reimburse the Company for withholding taxes payable by the Company for the
benefit of Mr. Hudkins on account of the vesting of the restricted stock.
(6)
Includes 160,000 options held by Mr. Ciavarella
that are presently exercisable or exercisable within the next 60 days. Of the
160,000 options, 143,334 shares are subject to a lock-up agreement, which
expires with respect to 16,667 shares on each of March 24, 2006 and 2007,
28,333 shares on each of December 31, 2007 and 2008, 28,334 shares on December 31,
2009, 8,333 shares on each of April 1, 2008 and 2009, and 8,334 shares on April 1,
2010.
(7)
Includes 96,376 options granted to Mr. Ehrlich
that are presently exercisable or exercisable within the next 60 days. Of the
96,376 options, 47,500 shares are subject to a lock-up agreement, which expires
with respect to 5,000 shares on each of November 12, 2006 and 2007, and
12,500 shares on each of November 8, 2006, 2007, and 2008. Also includes
46,600
23
shares held in trust, and
8,333 shares acquirable upon conversion of notes held in trust, by Mrs. Burtt
Ehrlich as Trustee for David Ehrlich, as to which Mr. Ehrlich disclaims
beneficial ownership.
(8)
Includes 96,376 options granted to Mr. Goldstein
that are presently exercisable or exercisable within the next 60 days. Of the
96,376 options, 47,500 shares are subject to a lock-up agreement, which expires
with respect to 5,000 shares on each of November 12, 2006 and 2007, and
12,500 shares on each of November 8, 2006, 2007, and 2008. Includes 8,333
shares acquirable upon conversion of notes held by Mr. Goldstein.
(9)
Excludes 41,903 shares held by Mrs. Stuart P.
Greenspon, as to which Mr. Greenspon disclaims beneficial ownership. Includes
37,500 options granted to Mr. Greenspon that are presently exercisable or exercisable
within the next 60 days, but which are subject to a lock-up agreement, which
expires with respect to 12,500 shares on each of November 8, 2006, 2007,
and 2008.
(10)
Mr. Foster resigned from the Board of Directors on
September 8, 2005.
(11)
Includes 43,876 options granted to Mr. Nelson that
are presently exercisable or exercisable by March 7, 2006 when the options
expire in accordance with their terms. Mr. Nelson resigned from the Board
of Directors on November 7, 2005.
24
DESCRIPTION OF COMMON STOCK
The following description
of our Common Stock does not purport to be complete and is subject in all
respects to applicable Delaware law and qualified by reference to the
provisions of our Certificate of Incorporation and Bylaws. Copies of our
certificate of incorporation and bylaws are incorporated by reference and will
be sent to stockholders upon request. See "Where Can You Find More Information."
Authorized Common
Stock
We are authorized to issue
an aggregate of 50,250,000 shares of capital stock, of which 50,000,000 shares
consists of shares of Common Stock, $0.02 par value, and 250,000 shares
consists of shares of preferred stock, $1.00 par value. As of December 23,
2005, there were 9,893,623 shares of our Common Stock outstanding.
Voting Rights
The holders of our Common
Stock are entitled to one vote for each share on all matters voted on by our
stockholders, including the election of directors. No holders of our Common
Stock have any right to cumulative voting.
Dividend Rights
Subject to any
preferential rights of any outstanding series of preferred stock, created by
our board of directors, the holders of our Common Stock will be entitled to
such dividends as may be declared from time to time by our board of directors from
funds available therefore. We currently do not pay cash dividends on our Common
Stock and do not intend to pay cash dividends on our Common Stock in the
foreseeable future.
Rights Upon
Liquidation
In the event of a
liquidation, dissolution or winding up, the holders of our Common Stock are
entitled to share ratably in all assets remaining after payment of liabilities
and the liquidation value and other amounts owed to the holders of our
preferred stock.
Preemptive Rights
Holders of our Common
Stock have no preemptive rights or rights to convert their shares of Common
Stock into any other securities.
Other Rights
There are no redemption or
sinking fund provisions applicable to our Common Stock.
25
PLAN OF DISTRIBUTION
The Selling Stockholders, which as used herein
includes donees, pledgees, transferees or other successors-in-interest selling
shares of our Common Stock or interests in shares of our Common Stock received
after the date of this Prospectus from a Selling Stockholder as a gift, pledge,
partnership distribution or other transfer, may, from time to time, sell,
transfer or otherwise dispose of any or all of their shares of our Common Stock
or interests in shares of our Common Stock on any stock exchange, market or
trading facility on which the shares are traded or in private transactions. These
dispositions may be at fixed prices, at prevailing market prices at the time of
sale, at prices related to the prevailing market price, at varying prices
determined at the time of sale, or at negotiated prices.
The Selling
Stockholders may use any one or more of the following methods when disposing of
shares or interests therein:
·
market
transactions in accordance with the rules of The Nasdaq Stock Marker or
any other available markets or exchanges;
·
ordinary
brokerage transactions and transactions in which the broker-dealer solicits
purchasers;
·
block
trades in which the broker-dealer will attempt to sell the shares as agent, but
may position and resell a portion of the block as principal to facilitate the transaction;
·
purchases
by a broker-dealer as principal and resale by the broker-dealer for its
account;
·
an
exchange distribution in accordance with the rules of the applicable
exchange;
·
privately
negotiated transactions;
·
short
sales entered into after the date of this Prospectus;
·
writing
or settlement of options or other hedging transactions, whether through an
options exchange or otherwise;
·
distributions
to the partners and/or members of the Selling Stockholders;
·
redemptions
or repurchases of interests owned by partners and/or members of the Selling
Stockholders;
·
broker-dealers
may agree with the Selling Stockholders to sell a specified number of such
shares at a stipulated price per share;
·
a
combination of any such methods of sale; and
·
any
other method permitted pursuant to applicable law.
In connection with the sale of our Common Stock or
interests therein, the Selling Stockholders may enter into hedging transactions
with broker-dealers or other financial institutions, which may in turn engage
in short sales of our Common Stock in the course of hedging the positions they
assume with the selling stockholders. The Selling Stockholders may also sell
shares of our Common Stock short and deliver these securities to close out
their short positions, or loan or pledge our Common Stock to broker-dealers
that in turn may sell these securities. The Selling Stockholders may also enter
into option or other transactions with broker-dealers or other financial
institutions or the creation of one or more derivative securities which require
the delivery to such broker-dealer or other financial institution of shares
offered by this Prospectus, which shares such broker-dealer or other financial
institution may resell pursuant to this Prospectus (as supplemented or amended
to reflect such transaction).
Short selling occurs when a person sells shares of
stock which the person does not yet own and promises to buy stock in the future
to cover the sale. The general objective of the person selling the shares short
is to make a profit by buying the shares later, at a lower price, to cover the
sale. Significant amounts
26
of short selling, or the
perception that a significant amount of short sales could occur, could depress
the market price of our Common Stock. In contrast, purchases to cover a short
position may have the effect of preventing or retarding a decline in the market
price of our Common Stock, and together with the imposition of the penalty bid,
may stabilize, maintain or otherwise affect the market price of our Common
Stock. As a result, the price of our Common Stock may be higher than the price
that otherwise might exist in the open market. If these activities are
commenced, they may be discontinued at any time. These transactions may be
effected on The Nasdaq Stock Market or any other available markets or
exchanges.
The aggregate proceeds to the Selling Stockholders
from the sale of our Common Stock offered by them will be the purchase price of
our Common Stock less discounts or commissions, if any. Each of the Selling
Stockholders reserves the right to accept and, together with their agents from
time to time, to reject, in whole or in part, any proposed purchase of our
Common Stock to be made directly or through agents. We will not receive any of
the proceeds from this offering.
The Selling Stockholders also may resell all or a
portion of the shares in open market transactions in reliance upon Rule 144
under the Securities Act, provided that they meet the criteria and conform to
the requirements of that rule.
The Selling Stockholders and any underwriters,
broker-dealers or agents that participate in the sale of our Common Stock or
interests therein may be "underwriters" within the meaning of Section 2(11)
of the Securities Act. Any discounts, commissions, concessions or profits they
earn on any resale of the shares may be underwriting discounts and commissions
under the Securities Act. Selling Stockholders who are "underwriters" within
the meaning of Section 2(11) of the Securities Act will be subject to the
prospectus delivery requirements of the Securities Act.
To the extent required, the shares of our Common Stock
to be sold, the names of the Selling Stockholders, the respective purchase
prices and public offering prices, the names of any agents, dealers or underwriters,
any applicable commissions or discounts with respect to a particular offer will
be set forth in an accompanying prospectus supplement or, if appropriate, a
post-effective amendment to the registration statement that includes this
Prospectus.
In order to comply with the securities laws of some
states, if applicable, our Common Stock may be sold in these jurisdictions only
through registered or licensed brokers or dealers. In addition, in some states
our Common Stock may not be sold unless it has been registered or qualified for
sale or an exemption from registration or qualification requirements is
available and is complied with.
We have advised the Selling Stockholders that the
anti-manipulation rules of Regulation M under the Exchange Act may apply
to sales of shares in the market and to the activities of the Selling
Stockholders and their affiliates.
In connection with this offering, some Selling
Stockholders may also engage in passive market making transactions in our
Common Stock on The Nasdaq Stock Market. Passive market making consists of
displaying bids on The Nasdaq Stock Market limited by the prices of independent
market makers and effecting purchases limited by those prices in response to
order flow. Rule 103 of Regulation M under the Exchange Act limits
the amount of net purchases that each passive market maker may make and the
displayed size of each bid. Passive market making may stabilize the market
price of our Common Stock at a level above that which might otherwise prevail
in the open market and, if commenced, may be discontinued at any time.
In addition, we will make
copies of this Prospectus (as it may be supplemented or amended from time to
time) available to the Selling Stockholders for the purpose of satisfying the
prospectus delivery requirements of the Securities Act. The Selling
Stockholders may indemnify any broker-dealer that participates in transactions
involving the sale of the shares against certain liabilities, including
liabilities arising under the Securities Act.
27
WHERE YOU CAN FIND MORE INFORMATION
We are subject to the informational requirements of
the Exchange Act, and in accordance therewith we are required to file periodic
reports, proxy statements and other information with the Commission. Such
reports, proxy statements and other information filed by us can be inspected
and copied at the Commission's Public Reference Room located at 450 Fifth
Street, N.W., Room 1024, Washington, D.C. 20549, at the prescribed rates. The
Commission also maintains a site on the World Wide Web that contains reports,
proxy and information statements and other information regarding registrants
that file electronically. The address of such site is http://www.sec.gov. Please
call 1-800-SEC-0330 for further information on the operation
of the Commission's Public Reference Room.
Our Common Stock is quoted on The Nasdaq Stock Market
under the symbol "GAIT."
With respect to our Common Stock, this Prospectus
omits certain information that is contained in the registration statement on
file with the Commission, of which this Prospectus is a part. For further
information with respect to us and our Common Stock, reference is made to the
registration statement, including the exhibits incorporated therein by
reference or filed therewith. Statements herein contained concerning the
provisions of any document are not necessarily complete and, in each instance,
reference is made to the copy of such document filed as an exhibit or
incorporated by reference to the registration statement. The registration
statement and the exhibits may be inspected without charge at the offices of
the Commission or copies thereof obtained at prescribed rates from the public
reference section of the Commission at the addresses set forth above.
You should rely on the
information contained in this Prospectus and in the registration statement as
well as other information you deem relevant. We have not authorized anyone to
provide you with information different from that contained in this Prospectus. This
Prospectus is an offer to sell, or a solicitation of offers to buy, securities
only in jurisdictions where offers and sales are permitted. The information
contained in this Prospectus is accurate only as of the date of this
Prospectus, regardless of the time of delivery of this Prospectus or any sale
or exchange of securities, however, we have a duty to update that information
while this Prospectus is in use by you where, among other things, any facts or
circumstances arise which, individually or in the aggregate, represent a
fundamental change in the information contained in this Prospectus or any
material information with respect to the plan of distribution was not
previously disclosed in the Prospectus or there is any material change to such
information in the Prospectus. This Prospectus does not offer to sell or
solicit any offer to buy any securities other than our Common Stock to which it
relates, nor does it offer to buy any of these securities in any jurisdiction
to any person to whom it is unlawful to make such offer or solicitation in such
jurisdiction.
EXPERTS
The consolidated financial
statements and related financial statement schedule incorporated in this
Prospectus by reference from the Company's Annual Report on Form 10-K
for the year ended December 31, 2004 have been audited by Deloitte &
Touche LLP, an independent registered public accounting firm, as stated in
their reports, which are incorporated herein by reference, and have been so
incorporated in reliance upon the reports of such firm as experts in accounting
and auditing.
LEGAL MATTERS
The validity of the shares of Langer Common Stock
offered by this Prospectus will be passed upon by Kane Kessler, P.C., New York,
New York, as counsel to Langer.
28
REOFFER
PROSPECTUS
LANGER, INC.
1,309,428 Shares of Common
Stock, par value $0.02 per share
December 23, 2005
No dealer, salesperson or other person is authorized to give any information or to represent anything not contained in this Prospectus. You must not rely on any unauthorized information or representations. This Prospectus is an offer to sell only the shares offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this Prospectus is current only as of its date.
PART II
INFORMATION REQUIRED IN THE
REGISTRATION STATEMENT
Item 3.
INCORPORATION
OF CERTAIN DOCUMENTS BY REFERENCE
The
following documents filed with the Securities and Exchange Commission (the "Commission")
by Langer, Inc., a Delaware corporation (the "Company"), are incorporated
by reference into the Registration Statement:
(a)
The Company's Annual Report on Form 10-K
  for the fiscal year ended December 31, 2004, filed pursuant to the
  Securities Exchange Act of 1934;
(b)
Amendment No. 7 to
  the Company's Registration Statement under the Securities Act of 1933 on
  Form S-1, filed on June 3, 2005;
(c)
The Company's Quarterly
  Report on Form 10-Q for the quarterly period ended
  September 30, 2005, filed pursuant to the Exchange Act;
(d)
Amendment No. 1 to
  the Company's Quarterly Report on Form 10-Q/A for the quarterly
  period ended June 30, 2005, filed pursuant to the Exchange Act;
(e)
The Company's Quarterly
  Report on Form 10-Q for the quarterly period ended June 30,
  2005, filed pursuant to the Exchange Act;
(f)
Amendment No. 1 to
  the Company's Quarterly Report on Form 10-Q/A for the quarterly
  period ended March 31, 2005, filed pursuant to the Exchange Act;
(g)
The Company's Quarterly
  Report on Form 10-Q for the quarterly period ended March 31,
  2005, filed pursuant to the Exchange Act;
(h)
The Company's Current
  Report on Form 8-K, Date of Event—December 22, 2005, filed on
  December 23, 2005, pursuant to the Exchange Act;
(i)
The Company's Current
  Report on Form 8-K, Date of Event—December 20, 2005, filed on
  December 27, 2005, pursuant to the Exchange Act;
(j)
The Company's Current
  Report on Form 8-K, Date of Event—December 19, 2005, filed on
  December 22, 2005, pursuant to the Exchange Act;
(k)
The Company's Current
  Report on Form 8-K, Date of Event—November 23, 2005, filed on
  November 30, 2005, pursuant to the Exchange Act;
(l)
The Company's Current
  Report on Form 8-K, Date of Event—November 18, 2005, filed on
  November 21, 2005, pursuant to the Exchange Act;
(m)
The Company's Current
  Report on Form 8-K, Date of Event—November 8, 2005, filed on
  November 15, 2005, pursuant to the Exchange Act;
(n)
The Company's Current
  Report on Form 8-K, Date of Event—November 7, 2005, filed on
  November 14, 2005, pursuant to the Exchange Act;
(o)
The Company's Current
  Report on Form 8-K, Date of Event—September 30, 2005, filed
  on October 6, 2005, pursuant to the Exchange Act;
(p)
The Company's Current
  Report on Form 8-K, Date of Event—September 15, 2005, filed
  on September 20, 2005, pursuant to the Exchange Act;
(q)
The Company's Current
  Report on Form 8-K, Date of Event—September 8, 2005, filed on
  September 9, 2005, pursuant to the Exchange Act;
II-
1
(r)
The Company's Current Report on Form 8-K,
  Date of Event—September 1, 2005, filed on September 8, 2005,
  pursuant to the Exchange Act;
(s)
The Company's Current
  Report on Form 8-K, Date of Event—August 15, 2005, filed on
  August 15, 2005, pursuant to the Exchange Act;
(t)
The Company's Current
  Report on Form 8-K, Date of Event—July 13, 2005, filed on
  July 13, 2005, pursuant to the Exchange Act;
(u)
The Company's Current
  Report on Form 8-K, Date of Event—June 23, 2005, filed on
  June 28, 2005, pursuant to the Exchange Act;
(v)
The Company's Current
  Report on Form 8-K, Date of Event—June 10, 2005, filed on
  June 15, 2005, pursuant to the Exchange Act;
(w)
The Company's Current
  Report on Form 8-K, Date of Event—May 23, 2005, filed on
  May 24, 2005, pursuant to the Exchange Act;
(x)
The Company's Current
  Report on Form 8-K, Date of Event—March 31, 2005, filed on
  April 5, 2005, pursuant to the Exchange Act;
(y)
The Company's Current
  Report on Form 8-K, Date of Event—March 30, 2005, filed on
  March 31, 2005, pursuant to the Exchange Act;
(z)
The Company's Current
  Report on Form 8-K/A, Date of Event—September 30, 2004, filed
  on February 11, 2005, pursuant to the Exchange Act;
(aa)
The Company's Current
  Report on Form 8-K, Date of Event—January 28, 2005, filed on
  February 2, 2005, pursuant to the Exchange Act;
(bb)
Amendment No. 1 to
  Definitive Proxy Statement dated May 24, 2005, relating to the annual
  meeting of stockholders held on June 23, 2005; and
(cc)
The description of the
  Company's Common Stock contained in the Company's Registration Statement on
  Form 8-A (Reg. No. 000-12991), filed with the
  Commission as of July 3, 2002 by the Company to register such securities
  under the Exchange Act, including all amendments and reports filed for the
  purpose of updating that description.
All of such documents are
on file with the Commission. In addition, all documents filed by the Company
with the Commission pursuant to Sections 13(a), 13(c), 14 and 15(d) of the
Exchange Act subsequent to the date of this Registration Statement and prior to
the filing of a post-effective amendment which indicates that all the
securities offered hereby have been sold or which deregisters all securities
then remaining unsold shall be deemed to be incorporated by reference in this
Registration Statement and to be a part hereof from the date of the filing of such
documents with the Commission. Any statement contained in a document
incorporated by reference herein shall be deemed to be modified or superseded
for purposes hereof to the extent that a statement contained herein (or in any
other subsequently filed document which also is incorporated by reference
herein) modifies or supersedes such statement. Any statement so modified or
superseded shall not be deemed to constitute a part hereof except as so
modified or superseded.
Item 4.
DESCRIPTION
OF SECURITIES
Not applicable.
Item 5.
INTERESTS
OF NAMED EXPERTS AND COUNSEL
Not applicable.
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2
Item 6.
INDEMNIFICATION
OF DIRECTORS AND OFFICERS
We are a Delaware corporation. Subsection (a) of Section 145
of the General Corporation Law of the State of Delaware (the "DGCL") empowers a
corporation to indemnify any current or former director, officer, employee or
agent of the corporation, or any individual serving at the corporation's
request as a director, officer, employee or agent of another organization, who
was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the
corporation), against expenses (including attorneys' fees), judgments, fines
and amounts paid in settlement actually and reasonably incurred by the person
in connection with such action, suit or proceeding provided that such director,
officer, employee or agent acted in good faith and in a manner he reasonably
believed to be in, or not opposed to, the best interests of the corporation,
and, with respect to any criminal action or proceeding, provided further that
such director, officer, employee or agent had no reasonable cause to believe
his conduct was unlawful.
Subsection (b) of Section 145 of the DGCL
empowers a corporation to indemnify any current or former director, officer,
employee or agent who was or is a party or is threatened to be made a party to
any threatened, pending or completed action or suit by or in the right of the
corporation to procure a judgment in its favor by reason of the fact that such
person is or was a director, officer, employee or agent of the corporation, or
any individual serving at the corporation's request as a director, officer,
employee or agent of another organization against expenses (including attorneys'
fees) actually and reasonably incurred by the person in connection with the
defense or settlement of such action or suit provided that such director,
officer, employee or agent acted in good faith and in a manner reasonably
believed to be in, or not opposed to, the best interests of the corporation,
except that no indemnification may be made in respect to any claim, issue or
matter as to which such director, officer, employee or agent shall have been
adjudged to be liable to the corporation unless and only to the extent that the
Court of Chancery or the court in which such action or suit was brought shall
determine upon application that, despite the adjudication of liability but in
view of all of the circumstances of the case, such director or officer is
fairly and reasonably entitled to indemnity for such expenses which the Court
of Chancery or such other court shall deem proper.
Section 145 further provides that to the extent a
present or former director or officer has been successful in the defense of any
action, suit or proceeding referred to in subsections (a) and (b) of Section 145
or in the defense of any claim, issue or matter therein, he shall be
indemnified against expenses (including attorneys' fees) actually and
reasonably incurred by him in connection therewith; that indemnification and
advancement of expenses provided for by, or granted pursuant to, Section 145
shall not be deemed exclusive of any other rights to which the indemnified
party may be entitled; and empowers the corporation to purchase and maintain
insurance on behalf of a current or former director, officer, employee or agent
of the corporation, or any individual serving at the corporation's request as a
director, officer or employee of another organization, against any liability
asserted against him or incurred by him in any such capacity, or arising out of
his status as such, whether or not the corporation would have the power to
indemnify him against such liabilities under Section 145.
Our certificate of incorporation provides that we
shall, to the fullest extent permitted by the DGCL, indemnify all persons
acting as officers and directors of Langer from and against all expenses,
liabilities, or other matters covered by the DGCL.
As permitted by the DGCL, our certificate of
incorporation provides that, to the fullest extent permitted by the DGCL, no
director shall be personally liable to us or to our stockholders for monetary
damages for breach of his fiduciary duty as a director. Delaware law does not
permit the elimination of liability (a) for any breach of the director's
duty of loyalty to us or our stockholders, (b) for acts or omissions not
in good faith or which involve intentional misconduct or a knowing violation of
law, (c) in respect of certain unlawful dividend payments or stock
redemptions or repurchases or (d) for any
II-
3
transaction from which the
director derives an improper personal benefit. The effect of this provision in
the certificate of incorporation is to eliminate our rights and the rights of
our stockholders (through stockholders' derivative suits on behalf of us) to
recover monetary damages against a director for breach of fiduciary duty as a
director thereof (including breaches resulting from negligent or grossly
negligent behavior) except in the situations described in clauses (a) -
(d), inclusive, above. These provisions will not alter the liability of
directors under federal securities laws.
We have also entered into separate indemnification
agreements with each of our directors and executive officers which provide
significant additional protection to such persons. In addition, we have in
effect a directors and officers liability insurance policy indemnifying our
directors and officers and the directors and officers of our subsidiaries
within a specific limit for certain liabilities incurred by them, including
liabilities under the Securities Act. We pay the entire premium of this policy.
We believe that our
certificate of incorporation and bylaw provisions, our directors and officers
liability insurance policy and our indemnification agreements are necessary to
attract and retain qualified persons to serve as our directors and officers.
Item 7.
EXEMPTION
FROM REGISTRATION CLAIMED
Certain restricted
securities to be reoffered and resold pursuant to this Registration Statement
were issued under the Plans and in transactions exempt from registration
pursuant to Section 4(2) of the Securities Act.
Item 8.
EXHIBITS
Exhibit No.
Description of Exhibits
4.1
Langer, Inc. 2005 Stock Incentive Plan (filed
  as Appendix A to Amendment No. 1 to the Registrant's Definitive Proxy
  Statement dated May 24, 2005, filed with the Securities and Exchange
  Commission on May 26, 2005).*
4.2
Langer, Inc. 2001
  Stock Incentive Plan (filed as Exhibit 10.18 of our Annual Report on
  Form 10-K for the fiscal year ended December 31, 2001, filed
  with the Securities and Exchange Commission on April 1, 2002).*
4.3
Stock Option Agreement
  between Langer, Inc. and W. Gray Hudkins, dated November 12, 2004
  (filed as Exhibit 10.35 to our Registration Statement on Form S-1
  (File No. 333-120718) filed with the Securities and Exchange Commission
  on November 23, 2004).*
4.4
Stock Option Agreement
  between Langer, Inc. and W. Gray Hudkins, dated November 12, 2004
  (filed as Exhibit 10.37 to our Registration Statement on Form S-1
  (File No. 333-120718) filed with the Securities and Exchange Commission
  on November 23, 2004).*
5.1
Opinion of Kane Kessler,
  P.C. regarding the legality of the securities being registered.**
23.1
Consent of Kane Kessler,
  P.C. (included in Exhibit No. 5.1 to the Registration Statement).
23.2
Consent of
  Deloitte & Touche LLP.**
24.1
Power of Attorney
  (included in the signature pages of this registration statement).**
*
Incorporated
by reference.
**
Filed
herewith.
II-
4
Item 9.
UNDERTAKINGS
A.       The undersigned registrant hereby
undertakes:
(1)   To file,
during any period in which offers or sales are being made, a post-effective
amendment to the Registration Statement:
(i)    To include
any prospectus required by Section 10(a)(3) of the Securities Act;
(ii)   To reflect
in the Prospectus any facts or events arising after the effective date of the
Registration Statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the Registration Statement;
(iii)  To include
any material information with respect to the plan of distribution not
previously disclosed in the Registration Statement or any material change to
such information in the Registration Statement;
provided
,
however
,
that paragraphs (a)(i) and (a)(ii) do not apply if the information
required to be included in a post-effective amendment by those paragraphs is
contained in periodic reports filed by the Company pursuant to Section 13
or Section 15(d) of the Exchange Act that are incorporated by
reference in the Registration Statement.
(2)   That, for
the purpose of determining any liability under the Securities Act, each such
post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
(3)   To remove
from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
B.     The
undersigned registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act, each filing of the Company's annual report
pursuant to Section 13(a) or Section 15(d) of the Exchange
Act that is incorporated by reference in the Registration Statement shall be
deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
C.     Insofar as
indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers and controlling persons of the Company
pursuant to the foregoing provisions, or otherwise, the Company has been
advised that in the opinion of the Commission such indemnification is against
public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the Company of expenses incurred or paid
by a director, officer or controlling person of the Company in the successful
defense of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities being
registered, the Company will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
II-
5
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, as amended, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Deer Park, State of New York, on this 23
rd
day of December, 2005.
LANGER, INC.
By:
/
s/ ANDREW H. MEYERS
Name:
Andrew H. Meyers
Title:
President and Chief Executive Officer
II-
6
POWER OF ATTORNEY
Each of the undersigned officers and directors of
Langer, Inc. hereby severally constitutes and appoints W. Gray Hudkins and
Joseph P. Ciavarella as the attorney-in-fact for the undersigned, in any and
all capacities, with full power of substitution, to sign any and all pre- or
post-effective amendments to this Registration Statement, any subsequent
Registration Statement for the same offering which may be filed pursuant to Rule 462(b) under
the Securities Act of 1933, as amended, and any and all pre- or post-effective
amendments thereto, and to file the same with exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact full power and authority to do and perform
each and every act and thing requisite and necessary to be done in and about
the premises, as fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said attorney-in-fact may
lawfully do or cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act of 1933, as amended, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated:
Signature
Title
Date
/s/ ANDREW H. MEYERS
President, Chief
  Executive Officer, and
December 29, 2005
Andrew
  H. Meyers
Director (principal
  executive officer)
/s/ JOSEPH P.
  CIAVARELLA
Chief Financial
  Officer and Vice President
December 29, 2005
Joseph
  P. Ciavarella
(principal financial
  officer)
Director
December 29, 2005
Burtt
  R. Ehrlich
Director
December 29, 2005
Arthur
  Goldstein
/s/ STUART P.
  GREENSPON
Director
December 29, 2005
Stuart
  P. Greenspon
/s/ WARREN B.
  KANDERS
Director
December 29, 2005
Warren B. Kanders
II-
7
EXHIBIT INDEX
Exhibit No.
Description of Exhibits
4.1
Langer, Inc. 2005 Stock Incentive Plan (filed
  as Appendix A to Amendment No. 1 to the Registrant's Definitive Proxy
  Statement dated May 24, 2005, filed with the Securities and Exchange
  Commission on May 26, 2005).*
4.2
Langer, Inc. 2001
  Stock Incentive Plan (filed as Exhibit 10.18 of our Annual Report on Form 10-K
  for the fiscal year ended December 31, 2001, filed with the Securities
  and Exchange Commission on April 1, 2002).*
4.3
Stock Option Agreement
  between Langer, Inc. and W. Gray Hudkins, dated November 12, 2004
  (filed as Exhibit 10.35 to our Registration Statement on Form S-1
  (File No. 333-120718) filed with the Securities and Exchange
  Commission on November 23, 2004).*
4.4
Stock Option Agreement
  between Langer, Inc. and W. Gray Hudkins, dated November 12, 2004
  (filed as Exhibit 10.37 to our Registration Statement on Form S-1
  (File No. 333-120718) filed with the Securities and Exchange
  Commission on November 23, 2004).*
5.1
Opinion of Kane Kessler,
  P.C. regarding the legality of the securities being registered.**
23.1
Consent of Kane Kessler,
  P.C. (included in Exhibit No. 5.1 to the Registration Statement).
23.2
Consent of
  Deloitte & Touche LLP.**
24.1
Power of Attorney
  (included in the signature pages of this registration statement).**
*
Incorporated
by reference.
**
Filed herewith.