| A. Settlement Statement |                  | U.S. Department of Housing |   | OMB Approval No. 2502-0285 |
|-------------------------|-----------------------|-------------------------------------------|--------|----------------------------|
|                    | and Urban Development |                                      |
|                    |                  |                                      |   |                       |   |   |   |   |   |   |
| B. Type of Loan         |

| 1. FHA    2. RHS   3. Conv. Unins.                                                                                                                                                                             | 6. File Number                                                                                                                                                                                                                                                                         | 7. Loan Number                                  | 8. Mortgage Insurance Case Number |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|-----------------------------------|
| 4. VA       5. Conv. Ins.                                                                                                                                                                                      | 10-0728                                                                                                                                                                                                                                                                                |                                            |                              |   |
| C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agenet are shown. Items                                                                                                 |
|                    marked "(p.o.c)" were paid outsie the closing; they are shown here for information purposes and are not included in the totals. |
| D. Name and Address of borrower                                                                                                                                                                                                                   | E. Name and Address of Seller                                                                                                                                                                                                                                                          | F. Name and Address of Lender                   |
| Lakeland Industries, Inc.                                                                                                                                                                                                                         | Harvey Pride Jr.                                                                                                                                                                                                                                                                       |                                            |
| 834 3rd Avenue                                                                                                                                                                                                                                    | 202 Pride Lane, SW                                                                                                                                                                                                                                                                     |                                            |
| New York, NY 10022                                                                                                                                                                                                                                | Decatur, AL 35603                                                                                                                                                                                                                                                                      |                                            |
| G. Property Location                                                                                                                                                                                                                              | H. Settlement Agent                                                                                                                                                                                                                                                                    |
| 201 Pride Lane, SW                                                                                                                                                                                                                                | NOWLIN & ASSOCIATES, LLC                                                                                                                                                                                                                                                           |
| Decatur, AL 35603                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                              | Place of Settlement                                                                                                                                                                                                                                                                    | I. Settlement Date                              |
|                                                                                                                                                                                                                                              | 118 Moulton Street East 1st Floor                                                                                                                                                                                                                                                      | 6/29/2010                                       |
|                                                                                                                                                                                                                                              | Decatur, AL 35601-2371                                                                                                                                                                                                                                                                 | DD: 06/29/10                                    |
| J. SUMMARY OF BORROWER'S TRANSACTION:                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                   | K. SUMMARY OF SELLER'S TRANSACTION:             |
| 100                                                                                                                                                                                                                                               | GROSS AMOUNT DUE FROM BORROWER                                                                                                                                                                                                                                                         |                                            |                              | 400 | GROSS AMOUNT DUE TO SELLER |
| 101                                                                                                                                                                                                                                               | Contract Sales price                                                                                                                                                                                                                                                                   | 250,000.00                                      |                              | 401 | Contract sales price | $250,000.00 |
| 102                                                                                                                                                                                                                                               | Personal property                                                                                                                                                                                                                                                                      |                                            |                              | 402 | Personal property |   |
| 103                                                                                                                                                                                                                                               | Settlement changes to borrower (line 1400)                                                                                                                                                                                                                                             | 2,317.00                                        |                              | 403 |   |   |
| 104                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 404 |   |   |
| 105                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 405 |   |   |
| Adjustments for items paid by seller in advance                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                   | Adjustments for items paid by seller in advance |
| 106                                                                                                                                                                                                                                               | City/town taxes                                      to                                  |                                            |                              | 406 | City/town taxes                                      to |   |
| 107                                                                                                                                                                                                                                               | County taxes                                            to |                                            |                              | 407 | County taxes                                            to |   |
| 108                                                                                                                                                                                                                                               | Assessments                                           to        |                                            |                              | 408 | Assessments                                           to |   |
| 109                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 409 |   |   |
| 110                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 410 |   |   |
| 111                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 411 |   |   |
| 112                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 412 |   |   |
| 120                                                                                                                                                                                                                                               | GROSS AMOUNT DUE FROM BORROWER                                                                                                                                                                                                                                                         | 252,317.00                                      |                              | 420 | GROSS AMOUNT DUE TO SELLER | $250,000.00 |
| 200                                                                                                                                                                                                                                               | AMOUNTS PAID BY OR IN BEHALF OF BORROWER                                                                                                                                                                                                                                               |                                            |                              | 500 | REDUCTIONS IN AMOUNT TO SELLER |   |
| 201                                                                                                                                                                                                                                               | Deposit or earnest money                                                                                                                                                                                                                                                               | 1,000.00                                        |                              | 501 | Excess Deposit (see instructions) | $1,000.00 |
| 202                                                                                                                                                                                                                                               | Principal amount of new loan(s)                                                                                                                                                                                                                                                        |                                            |                              | 502 | Settlement charges to seller (line 1400) | $1,825.00 |
| 203                                                                                                                                                                                                                                               | Existing loans(s) taken subject to                                                                                                                                                                                                                                                     |                                            |                              | 503 | Existing loan(s) taken subject to |   |
| 204                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 504 | Payoff of first mortgage loan | $144,066.58 |
|                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                   |                                            |                              |   | BBVA Compass |   |
| 205                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 505 | Payoff of second mortgage loan |   |
|                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                   |                                            |                              |   |   |   |
| 206                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 506 |   |   |
| 207                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 507 |   |   |
| 208                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 508 |   |   |
| 209                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 509 |   |   |
|                                                                                                                                                                                                                                              | Adjustments for items unpaid by seller                                                                                                                                                                                                                                                 |                                            |                              |   | Adjustments for items unpaid by seller |   |
| 210                                                                                                                                                                                                                                               | City/town taxes                                      to                                  |                                            |                              | 510 | City/town taxes                                      to |   |
| 211                                                                                                                                                                                                                                               | County taxes                                            to |                                            |                              | 511 | County taxes                                            to |   |
| 212                                                                                                                                                                                                                                               | Assessments                                           to        |                                            |                              | 512 | Assessments                                           to |   |
| 213                                                                                                                                                                                                                                               | Purchaser will pay 2010 Property Taxes                                                                                                                                                                                                                                                 |                                            |                              | 513 | Purchaser will pay 2010 Property Taxes |   |
| 214                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 514 |   |   |
| 215                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 515 |   |   |
| 216                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 516 |   |   |
| 217                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 517 |   |   |
| 218                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 518 |   |   |
| 219                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                   |                                            |                              | 519 |   |   |
| 220                                                                                                                                                                                                                                               | TOTAL PAID BY / FOR BORROWER                                                                                                                                                                                                                                                           | 1,000.00                                        |                              | 520 | TOTAL REDUCTION AMOUNT DUE SELLER | $146,891.58 |
| 300                                                                                                                                                                                                                                               | CASH AT SETTLEMENT FROM OR TO BORROWER                                                                                                                                                                                                                                                 |                                            |                              | 600 | CASH AT SETTLEMENT TO OR FROM SELLER |   |
| 301                                                                                                                                                                                                                                               | Gross amount due from borrower (line 120)                                                                                                                                                                                                                                              | 252,317.00                                      |                              | 601 | Gross amount due to seller (line 420) | $250,000.00 |
| 302                                                                                                                                                                                                                                               | Less amounts paid by/for borrower (line 220)                                                                                                                                                                                                                                           | 1,000.00                                        |                              | 602 | Less reduction amount due to seller (line 502) | 146891.58 |
| 303                                                                                                                                                                                                                                               | CASH                     FROM: BORROWER                                                                                                                                       | 251,317.00                                      |                              | 603 | CASH                     TO: SELLER | 103108.42 |

| 06-25-2010 at 2:10 PM | form HUD-1 (3/86) ref Handbook 4305.2 |
|-----------------------|---------------------------------------|

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|   | L. SETTLEMENT CHARGES:                                                      File Number 10-0728                                                                                                                                                                                                                                                                                                                                                                                                   | PAID FROMBORROWER'S FUNDS ATSETTLEMENT | PAID FROM SELLER'S FUNDS ATSETTLEMENT |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|-------------------------------------------------|
| 700    | TOTAL SALES/BROKER'S COMMISSION based on price $                               @                       =                                                                                                                                                                                                                                                                                                                                                                                          |
|   | Division of commission (line 700) as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 701    | $                                         to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                             |                                            |
| 702    | $                                         to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                             |                                            |
| 703    | Commission paid at Settlement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                             |                                            |
| 704    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 800    | ITEMS PAYABLE IN CONNECTION WITH LOAN                                                                                                                      P.O.C. |                                             |                                            |
| 801    | Loan Origination Fee                      %                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                             |                                            |
| 802    | Loan Discount                                     %                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                             |                                            |
| 803    | Appraisal Fee                                      to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                             |                                            |
| 804    | Credit Report                                       to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                             |                                            |
| 805    | Lender's inspection Fee               to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                             |                                            |
| 806    | Tax Service Fee                                    to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                             |                                            |
| 807    | Underwriter Fee                                to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                             |                                            |
| 808    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 809    | Document Preparation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 810    | Courier Fee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                             |                                            |
| 811    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 812    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 813    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 814    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 815    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 900    | ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                             |                                            |
| 901    | Interest from                   to                            @$                                /day                                                                                                                                                                                                                                                                 |                                             |                                            |
| 902    | Mortage Insurance Premium                                   to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                             |                                            |
| 93     | Hazard Insurance Premium                             yrs. to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                             |                                            |
| 904    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 905    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1000   | RESERVES DEPOSITED WITH LENDER FOR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                             |                                            |
| 1001   | Hazard Insurance                      mo. @$                   /mo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                             |                                            |
| 1002   | Mortgage Insurance                mo. @$                   /mo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                             |                                            |
| 1003   | City property taxes                   mo. @$                   /mo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                             |                                            |
| 1004   | County property taxes            mo. @$                   /mo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                             |                                            |
| 1005   | Annual Assessments               mo. @$                   /mo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                             |                                            |
| 1006   | Flood Insurance                         mo. @$                   /mo.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                             |                                            |
| 1007   |                                                                mo. @$                   /mo.                                                                                                                                                                                                                                                          |                                             |                                            |
| 1008   | Aggregate Reserve for Hazard/Flood Ins. City/Count                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                             |                                            |
| 1100   | TITLE CHARGES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                             |                                            |
| 1101   | Closing fee                                           to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                             |                                            |
| 1102   | Abstract or title search               to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1103   | Title Search                                         to Real Estate Title Services, LLC                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             | 125.00                                          |
| 1104   | Title insurance binder                 to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                             |                                            |
| 1105   | Document Preparation              to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                             |                                            |
| 1106   | Notary fees                                         to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                             |                                            |
| 1107   | Attorney's fees                                 to Nowlin & Associates, LLC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             | 450.00                                          |
|   | (inclues above item No:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                             |                                            |
| 1108   | Title insurance                                 to CTIC/Nowline= & Associates, LLC                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 805.00                                           |                                            |
|   | (inclues above item No: 1104                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                             |                                            |
| 1109   | Lender's coverage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                             |                                            |
| 1110   | Owner's coverage     250,000.00 - 805.00                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                             |                                            |
| 1111   | release Tracking and Search                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                             |                                            |
| 1112   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1113   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1200   | GOVERNMENT RECORDING AND TRANSFER CHARGES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                             |                                            |
| 1201   | Recording fees                   Deed $       12.00             :Mortgage $                            : Releases $                                                                                                                                                                                                                                                                                                              | 12.00                                            |                                            |
| 1202   | City/county/stamps       Deed $                                 : Mortgage $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1203   | state tax/stamps              Deed $    250.00             :Mortgage $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 250.00                                           |                                            |
| 1204   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1205   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1300   | ADDITIONAL SETTLEMENT CHARGES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                             |                                            |
| 1301   | Survey Fee                                        to    N/A                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                             |                                            |
| 1302   | Termite inspection                     to   N/A                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                             |                                            |
| 1303   | Appraisal Fee                                 to:  L.B. Wright & Son                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 1,250.00                                         | 1,250.00                                        |
| 1304   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1305   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1306   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1307   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1308   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                             |                                            |
| 1400   | TOTAL SETTLEMENT CHARGES (enter on lines 103 and 502, Sections J and K)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2,317.00                                         | 1,825.00                                        |

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|   | Lakeland Industries, Inc. |
|--------|---------------------------|
|   | By:                  | /s/ Christopher J. Ryan, CEO |
|   |                      |   |
|   | By:                       | /s/ Harvey Pride, Jr. |
|   |                      |   |
|   | Nowlin Associates, LLC    |
|   | By:                       | /s/  H.M. Nowlin |

| 06-25-2010 at 2:10 PM | form HUD-1 (3/86) ref Handbook 4305.2 |
|-----------------------|---------------------------------------|

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