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 Exhibit
10.7
 MANAGEMENT
AGREEMENT
 
 This
Management Agreement is made this 13th May, 2008, by and between:
 
 on one
side,
 
  1.           Elton de Carvalho Antunes,
Brazilian, married, industrial, bearer of ID Card N. 9012051018 SSP/BA, enrolled
with the Brazilian Taxpayers’ Registry under CPF/MF N. 294.962.250-04, resident
and domiciled in the City of Salvador, State of Bahia, at Alameda Cabo Frio,
s/n., Quadra 34, Lote 10, Praia do Flamengo, 40280-440 (“Officer”);
  
 and, on
the other side,
 
 2.           Qualytextil S.A.,a
corporation organized under the laws of Brazil, with its head office at Rua
Luxemburgo, sem n.o, Loteamento Granjas Rurais, Presidente Vargas, Quadra O,
Lotes, 82 and 83, São Caetano, in the City of Salvador, State of Bahia, enrolled
with the Brazilian Taxpayers' Registry (CNPJ) under No. 04.011.170/0001-22
(“Company”), hereby duly
represented by the undersigned legal representatives;
 
 and, as
intervening parties,
 
 3.           Lakeland Industries, Inc.,
duly organized under the laws of the State of Delaware, United Stated of
America, with offices at 701 Koehler Avenue, suite 7, Ronkonkoma, NY 11779
hereby duly represented by the undersigned representatives (“Lakeland”); and
 
 4.           Lakeland do Brasil Empreendimentos e
Participações Ltda., a limited liability company duly existing and
organized under the laws of Brazil, with its head offices located in the City of
São Paulo, State of São Paulo, at Av. Bernardino de Campos, N. 98, sala 9, CEP
04004-040, enrolled with the Brazilian Taxpayers' Registry (CNPJ) under
No. 09.484.003/0001-12, hereby duly represented by the undersigned legal
representatives,
 
 all
hereinafter jointly or individually referred to as “Party” or “Parties”,
 
 W
I T N E S S E T H:
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  WHEREAS, the Company is
engaged in the business of the production, manufacture, and sale of personnel
protective equipment (“Business”); and
 
 WHEREAS, the Company wishes
that the Officer signing this Management Agreement undertakes to work and/or
remain working exclusively as officer of the Company, as well as
to  use his/her best efforts for the development and profitable
performance of the Business, for a minimum period starting on the date hereof
and ending on December 31, 2011, in accordance with the terms and conditions
hereinbelow,
 
 NOW, THEREFORE, the Parties
have agreed to enter into this Management Agreement (“Agreement”), which shall be
governed by the following terms and conditions:
 
 I.           MANAGEMENT
OF THE COMPANY
 
 1.1.
Officer shall remain as Executive Officer of the Company for a period starting
on the date hereof and ending on December 31, 2011.
 
 1.2.
Officer hereby undertakes to manage the Business in the best interests of the
Company, and to use his/her best efforts
for the development and profitable performance of the Company, and, for such
purposes, Officer shall provide for the Company’s proper operation in all
fields, including, but not limited to:
 
 (i) take
office as Officer (Diretor sem
designação específica) ad be responsible for managing the production and
operations of the Company; and
 
 (ii)
representation of the Company before any third parties, private or
public.
 
 1.3.
Officer shall at all times during the Term of this Agreement:
 
 (i)
faithfully and diligently act for the benefit and betterment of the
Business;
 
 (ii) use
his/her best efforts to act in the best interests of the Business;
and
 
 (iii)
keep the Company andLakelandfullyinformed of all material activities carried out in the performance of the
Business.
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  1.4.
Officer hereby undertakes to comply with all reasonable Lakelandrules, directions and guidelines that
Officer has been given notice in written form and to strive to complete all
Lakeland financialtargets, commands and
other business goals regarding the Company and the Business that Officer has
been informed in written form, including the Lakeland Business Ethics and
Anti-Corrupt Practices Guide, and is not authorized to take any action out of
the ordinary course of business of the Company, without having received prior
written consent of Lakeland.
 
 1.5.
Officer hereby acknowledges and declares that the relationship undertaken hereby
among Officer, the Company and Lakeland is implemented on a fiduciary basis, and
there shall not exist any kind of labor relationship between Officer, Lakelandand/or the Company in any manner whatsoever.
 
 2.           REMUNERATION
 
 2.1. In
consideration for the management services of Officer, Officer shall receive a
total annual remuneration in the amount of R$ 136,500.00 (one hundred and thirty
six thousand and five hundred Reais), to be paid in twelve (12) monthlyinstallments of R$ 11,375.00 (eleven
thousand and three hundred and seventy five Reais) (“Remuneration”), payable on the
1st
business day of the subsequent month.
 
 2.1.1.
Each Party shall bear or pay all taxes attributed thereto by Law. In case any
withholdings in the Remuneration need to be made prior to its payment, then the
Remuneration shall be paid to Officer with such withholding amounts
deducted.
 
 2.1.2. On
the date of the first (1st) anniversary of this Agreement, the Remuneration
shall be increased in eighteen per cent (18%) and then shall remain fixed until
the termination of this Agreement.
 
 3.           VACATION
 
 3.1.
Officer shall be entitled to, after each management year in the Business,
counted as of the date hereof, take a twenty-two (22) Business Days of vacation, which period shall
be previouslydiscussed with Lakeland, in order for Lakeland to be able to
take the steps necessary to minimize any adverse effects on the administration
of the Business (“Vacation
Period”).
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  3.2.
During the Vacation Period, Officer shall still be entitled to receive his/her
normal  Remuneration due in that period.
 
 4.           REIMBURSEMENT
OF EXPENSES AND FRINGE BENEFITS
 
 4.1.
Officers’ expenses related to trips made and other
expenses incurredby Officer in order to properly exercise his/her
management obligations undertaken herein, shall be reimbursed by the Company,
according to the terms and conditions set forth in this Section IV (“Expenses”).
 
 4.2. For purposes of Section 4.1 above, the
Company shall reimburse any Expenses of the
Officerrelated to transportation (such as plane tickets, taxis, gas),
travel insurance (including medical insurance), meals, telecommunications and
accommodations (such as hotels fees), andthe
Company may, at its sole discretion,
reimburse other expenses made by Officer on his/her trips, provided that they
are undertaken exclusively for purposes of the Company.
 
 5.           EXCLUSIVITY
 
 5.1.
While this Agreement is in force, Officer shall not, in any way, act as officer,
employee, consultant, service provider or in any other manner, in any other
company or legal entity, in Brazil or abroad.
 
 6.           NON-COMPETITION,
NON-SOLICITATION AND CONFIDENTIALITY
 
 6.1. The
Parties acknowledge and agree that: (i) the business contacts, joint ventures,
Chinese, Mexican, Canadian, United Kingdom, EEC, South American, and all of
Lakeland's other U.S. and all international suppliers, independent contractors,
North American and international customers, international and domestic vendors,
joint venture or non-joint venture contractors, patterns, know-how, trade
secrets, marketing techniques and other aspects of the business of Lakeland are
of value to Lakeland and will provide Lakeland with substantial competitive
advantage in the operation of its business; (ii) the business of Lakeland is
national and international in scope, and (iii) Lakeland is entitled to protect
its goodwill and the consideration paid or to be paid under the Share Purchase
Agreement executed on May 2nd, 2008,
which payment is for this goodwill during and after the Term of this
Agreement.
 
 6.2. For
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by Officer, Officer hereby agrees that it shall not, and it shall
cause any of its enterprises, companies, corporations or subsidiaries thereof,
joint ventures, proprietorships,
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relatives, spouses or in-laws, or other similar affiliates hereinafter referred
to as ("affiliates") not to, in any manner, directly or indirectly: (i) at any
time, divulge, transmit or otherwise disclose, or cause to be divulged,
transmitted or otherwise disclosed, to any person or entity whatsoever, any
confidential or proprietary information of Lakeland, including business
contacts, customer lists, supplier lists, domestic and international vendors,
suppliers, joint ventures and assembly contractors, technology know-how, trade
secrets, marketing techniques, marketing plans and strategies, manufacturing
methods, patterns, product development techniques or plans, patents, laminates,
fabrics, contracts or other confidential or proprietary information of Lakeland
(including such matters related to the business heretofore conducted by Lakeland
and by the Company); (ii) at any time during the period from the date hereof
through and including the seventh (7th) anniversary of any termination date of
this Agreement hereof (the "Restrictive Period"), anywhere in or out of Brazil,
or internationally render any services to or engage, participate, or have any
interest or be involved in any capacity, whether as an owner, agent,
stockholder, officer, director, manager, partner, joint venturer, employee,
consultant or otherwise, in any business enterprise which is, or shall at any
time during the Restrictive Period be, engaged in any manner in the business of
designing, developing, manufacturing, marketing, selling and/or distributing any
Products (as defined below); (iii) directly or indirectly solicit, request,
cause or induce any person who during the Restrictive Period or eighteen (18)
months prior to the termination of this Agreement had been an employee of or
consultant to Lakeland or the Company, to leave employment or terminate his/her
relationship with Lakeland or the Company, or to employ, hire, engage or be
associated with, or endeavor to entice away from Lakeland or the Company, any
such person; and (iv) induce any customers, vendors, joint venturers or contract
manufacturers of Lakeland or the Company, either domestically or internationally
to discontinue doing business with Lakeland or the Company.
 
 6.2.1. As
used herein, the term "Products" means any and all goods and/or products of the
type heretofore sold or to be sold during the Term of this Agreement by Lakeland
or any of its subsidiaries, divisions or affiliates, including but not limited
to the Products as listed or to be listed in Lakeland's product catalogs,
pricing lists, or other literature and any functionally similar goods and/or
products, already developed by or to be developed by Lakeland and shown in its
catalogs, pricing lists or other literature or to be developed by Lakeland
during the Term of this Agreement.
 
 6.2.2.
For purposes hereof, information shall not be deemed "confidential" or
"proprietary" to the extent that it (i) is a matter of common knowledge or of
public record, or within the public domain (other than as a result of any breach
hereof by Officer); (ii) is generally
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  known
throughout the industry or was otherwise acquired from other legitimate sources;
or (iii) is required to be disclosed by law or by order of any court or
governmental authority.
 
 6.3. ln
consideration of Lakeland purchasing the stock of the Company on the date hereof
and the Supplementary Purchase Price (pursuant to the definition set forth in
the Share Purchase Agreement) to be paid in the future, and the entering into
this Agreement with Officer and the covenants and agreements of Lakeland and the
Company, pursuant to this Agreement, Officer agrees to abide by all of the
covenants herein.
 
 7.           TERM
AND TERMINATION
 
 7.1. This
Agreement shall be valid and in force from the date hereof and until December
31st, 2011
(“Term”), renewable upon agreement in writing by the Parties.
 
 7.2. Upon
termination of this Agreement, Officer shall immediately return any documents
and materials he/she may have in his/her possession or any other documents or
things made available or supplied under this Agreement and all copies thereof,
upon request of Lakeland or the Company and he/she shall immediately cease to
act on behalf of the Company, as well as to represent the Company before
third-parties. Officer further agrees to execute any and all documents required
to achieve such effect.
 
 7.3.
Notwithstanding the provisions above, this Agreement may be freely and
immediately terminated for cause by the Company, if so instructed by Lakeland, without any indemnification,
compensation or remuneration to Officer, in case of either:
 
 (i)
violation by Officer of the obligations undertaken in this
Agreement;
 
 (ii) Officer becomes, according to Brazilian Law, when
applicable, mentally or physically incapable to perform his/her duties, as set
forth hereinor upon death of
Officer;
 
 (iii)
violation by Officer of the Company’s or Business’ policies or rules, or willful
misconduct by Officer or refusal to follow the lawful and reasonable directives
of Lakeland;
 
 (iv)
commission by Officer of any act, action, or omission attributed directly to
Officer, which gives rise to termination with cause according to the Brazilian
labor laws; and
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  (v)
commission of any act, action, or omission attributed directly to Officer, which
constitutes a reason for dismissal or liability of executive officers, including
any violation of applicable law or the Company’s Articles of Association, or the
commission of any fraud, dishonesty or other unethical acts.
 
 7.4. The
Parties hereby agree that in the event of termination of this Agreement, the
obligations of the Officer under Section 6 above shall survive.
 
 7.5.
Officer may terminate this Agreement for cause in case the Company is in breach
of its obligation to pay the Remuneration in accordance with Section 2.1 above
and fails to cure such breach within thirty (30) days of the receipt of written
notice from Officer demanding that such breach to be cured.
 
 8.           PENALTIES
 
 8.1. Each
of the Parties further agrees that, in the event of a breach of or a default by
Officer of obligations set forth in Section 6, the Company shall be entitled to
(i) specific performance to enjoin any breach, or the continuation of any
breach, of the provisions of Section 6 and (ii) a punitive penalty (multa punitiva
não-compensatória) for each violation individually considered in the
amount of R$500,000.00 (five hundred thousand Reais).
 
 8.2. In
case of termination of this Agreement by the Company without cause, Officer
shall be entitled to receive an amount equivalent to the sum of the Remuneration
he/she would have received had this Agreement not been terminated early by the
Company and Section 2.06, “b” of the Share Purchase Agreement executed on May
2nd,
2008 shall apply as the case may be.
 
 9.           NOTICES
 
 9.1. All
notices or communications between the Parties as resulting from this Agreement
shall be sent in writing, by express international mail, fax or e-mail with
acknowledgement of receipt, to the following addresses and addressees, and shall
be deemed duly given upon receipt by the addressee, as proved by the
sender:
 
 If to
Lakeland and the Company:
 
 707-7
Koehler Avenue, Ronkonkoma, N.Y. 11779, USA
 Attention
to: Mr. Christopher J. Ryan and Gary Pokrassa
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  Fax:
631-981-9751
 E-mail:
GAPokrassa@lakeland.com
and CJRyan@lakeland.com
 
 If to
Officer:
 
 Alameda
Cabo Frio, s/n., Quadra 34, Lote 10
 Praia do
Flamengo, 40280-440
 Salvador,
BA, Brazil
 Attention
to Mr. Elton de Carvalho Antunes
 Fax: 55
71 3390-3001
 E-mail:
 
 10. GENERAL
PROVISIONS
 
 10.1. It
is acknowledged, understood and agreed that the restrictions contained in this
Agreement are (a) made for good, valuable and adequate consideration received by
Officer and (b) are reasonable and necessary, in terms of the time, geographic
scope and nature of the restrictions, for the protection of Lakeland and the
Company’s business and goodwill thereof. It is intended that said provisions be
fully severable and that, in the event that any of the foregoing restrictions,
or any portion of the foregoing restrictions, shall be deemed contrary to law,
invalid or unenforceable in any respect by any court or tribunal of competent
jurisdiction, then such restrictions shall be deemed to be amended, modified and
reduced in scope and effect, as to duration, geographic area or in any other
relevant respect, only to that extent necessary to render same valid and
enforceable, and any other of the foregoing restrictions shall be unaffected and
shall remain in full force and effect.
 
 10.2.
This Agreement shall be binding upon, and shall inure to the benefit of each of
the Parties and their respective successors and assignees.
 
 10.3. No
modification or waiver of any provision of this Agreement shall be valid unless
it is in writing and signed by the party against whom it is sought to be
enforced.  No waiver at any time of any provision of this Agreement
shall be deemed a waiver of any other provision of this Agreement at that time
or a waiver of that or any other provision at any other time.
 
 10.4.
This Agreement, its rights and obligations hereunder may not be assigned or
transferred in whole or in part to any party without the prior and express
written authorization of the Company or Lakeland. Officer may not subcontract
any of the managing powers, services and
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  attributions
given to Officer to any party without the prior and express written
authorization of the Company and Lakeland.
 
 10.5. The
captions and paragraph headings used in this Agreement are for convenience only,
and shall not affect the construction or interpretation of this Agreement or any
of the provisions hereof.
 
 11. APPLICABLE
LAW AND ARBITRATION
 
 11.1. Any
dispute arising between the Parties in connection with this Agreement, its
interpretation, validity, performance, enforceability, breach or termination,
shall be settled in an amicable way by the Parties by direct negotiations held
in good faith for a term not exceeding 30 (thirty) calendar days. If, upon
expiration of the 30-days period, the Parties have not reached an amicable
settlement, the dispute must be submitted to the decision of an arbitration
panel and shall be finally settled under the rules of Arbitration of the Chamber
of Commerce Brasil-Canadá (“CCBC”) by 3 (three) arbitrators appointed in
accordance with said rules. Language of the proceeding shall be English. Place
of arbitration and the issuance of the award shall be the City of São Paulo,
State of São Paulo, Brazil. The claims and disputes taken before the arbitration
proceeds shall be governed by Brazilian law, which will also be applicable to
solve any controversy regarding this arbitration Article. Notwithstanding the
arbitration provisions above, the Parties hereto shall have the right to go to
court in the County of São Paulo in order to (i) obtain injunctive relief or
(ii) to enforce the submission of the other Party to the arbitration
proceeding.
 
 IN WITNESS WHEREOF, the
Parties have caused this Agreement to be executed, in two (2) copies of equal
meaning and form, in the presence of two (2) witnesses.
 
 São
Paulo, 13th  May, 2008.
 
 
 Qualytextil
      S.A.By:
              /s/ Elton de Carvalho
      AntunesName:
              Elton
      de Carvalho AntunesTitle:
              Manager
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 Lakeland
      Industries, Inc.By:
              /s/ Gary A.
      PokrassaName:
              Gary
      A. PokrassaTitle:
              CFOLakeland
      do Brasil Empreendimentos e Participações Ltda.By:
              /s/ Jose Tavares
      LucenaName:
              Jose
      Tavares LucenaTitle:
              Administrator
 
 
 WITNESSES:1.
              
              
              2.Name:
              
              
              Name:ID:
              
              
              ID:CPF/MF:
              
              
              CPF/MF:


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