# EDGAR Filing Document

**Accession Number:** 0000798081
**File Stem:** 0001654954-23-001229
**Filing Date:** 2023-2
**Character Count:** 45768
**Document Hash:** 34f957997c2a2c9a03a57636b66572ca
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-23-001229.hdr.sgml**: 20230202

**ACCESSION NUMBER**: 0001654954-23-001229

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20230130

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230202

**DATE AS OF CHANGE**: 20230202

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LAKELAND INDUSTRIES INC
- **CENTRAL INDEX KEY:** 0000798081
- **STANDARD INDUSTRIAL CLASSIFICATION:** ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
- **IRS NUMBER:** 133115216
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0131

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-15535
- **FILM NUMBER:** 23581089

**BUSINESS ADDRESS:**
- **STREET 1:** 1525 PERIMETER PARKWAY, SUITE 325
- **CITY:** HUNTSVILLE
- **STATE:** AL
- **ZIP:** 35806
- **BUSINESS PHONE:** 800-645-9291

**MAIL ADDRESS:**
- **STREET 1:** 1525 PERIMETER PARKWAY, SUITE 325
- **CITY:** HUNTSVILLE
- **STATE:** AL
- **ZIP:** 35806

?xml version="1.0" encoding="utf-8"?lake_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported) **January 30, 2023**

__________________________________________

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| |
|:---|
| **Lakeland Industries, Inc.** |
| (Exact name of registrant as specified in its charter) |

---

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| | | |
|:---|:---|:---|
| **Delaware** | **0-15535** | **13-3115216** |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |

---

**<u>1525 Perimeter Parkway, Suite 325 Huntsville, AL 35806</u>**

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: **<u>(256) 350-3873</u>**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | |
|:---|:---|
| **Title of each class** | **Name of each exchange on which registered** |
| Common Stock, $0.01 Par Value<br> LAKE | NASDAQ Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

On January 30, 2023, the Board of Directors (the "Board") of Lakeland Industries, Inc. ("Lakeland" or the "Company") appointed Roger D. Shannon as the Company's Chief Financial Officer, effective February 1, 2023. Also effective February 1, 2023, in connection with the appointment of Mr. Shannon as Chief Financial Officer, Allen E. Dillard, the Company's Chief Operating and Financial Officer, will continue serving as Chief Operating Officer but will no longer serve in the role of Chief Financial Officer.

On January 30, 2023, the Company and Mr. Shannon entered into an employment agreement (the "Employment Agreement"), effective as of February 1, 2023. The Employment Agreement provides for, among other things, (i) an initial employment term ending on February 1, 2024, with one-year automatic renewals unless either party provides at least 90 days' prior written notice of its intention not to extend the term; (ii) an annual base salary of $300,000 subject to annual review by the Compensation Committee of the Board; (iii) eligibility to receive an annual cash bonus initially targeted at 40% of base salary; and (iv) eligibility to receive grants of equity incentive awards pursuant to the Company's 2017 Equity Incentive Plan, as amended (the "Plan"), as determined in the discretion of the Company's Compensation Committee. In addition, on February 1, 2023, Mr. Shannon received an initial equity award under the Plan, consisting of a stock option for 24,000 shares of the Company's common stock, with an exercise price of $14.44, the closing price of the Company's common stock on the date of grant, which will vest ratably over three years and expire on February 1, 2033.

The Employment Agreement contains provisions providing for severance payments equal to 12 months of base salary plus a pro rata cash bonus, if any, to Mr. Shannon in the event that he is terminated by the Company without Cause or by Mr. Shannon for Good Reason (each as defined in the Employment Agreement). In the event that such termination without Cause or for Good Reason occurs within 18 months after a change of control, Mr. Shannon will be entitled to severance payments equal to 24 months of base salary plus two times his target bonus amount, if any, in effect on the date of termination. The Employment Agreement also provides non-competition and non-solicitation restrictive covenants during Mr. Shannon's term of employment and for a period of one year thereafter.

The foregoing description of the terms of the Employment Agreement is not complete and is qualified in its entirety by reference to the full text of the Employment Agreement, a copy of which is attached hereto as Exhibit 10.1.

Mr. Shannon, 57, previously served as Chief Financial Officer and Treasurer of Charah Solutions from June 2019 to October 2022. Mr. Shannon previously served in various roles, including Chief Financial Officer, Senior Vice President of Finance, Treasurer and Head of Corporate Development at ADTRAN, a publicly-traded provider of next-generation networking solutions, from November 2015 to June 2019. Mr. Shannon also served as Chief Financial Officer and Treasurer for Steel Technologies and various senior finance roles at the Brown-Forman Corporation, British American Tobacco, and accounting positions at Vulcan Materials Company, Lexmark International and KPMG.

There are no arrangements or understandings between Mr. Shannon and any other person pursuant to which he has been selected to serve as Chief Financial Officer, nor is he a participant in any related party transactions required to be reported pursuant to Item 404(a) of Regulation S-K under the Securities Exchange Act of 1934, as amended (the "Exchange Act").

**Item 7.01. Regulation FD Disclosure.**

On February 2, 2023, the Company issued a press release, attached hereto as Exhibit 99.1, announcing the appointment of Mr. Shannon to the position of Chief Financial Officer.

The information contained in this Item 7.01 and in the accompanying Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) *Exhibits*.

---

| | |
|:---|:---|
| [10.1](lake_ex101.htm) | [Employment Agreement, by and between Lakeland Industries, Inc. and Roger D. Shannon](lake_ex101.htm) |
| [99.1](lake_ex991.htm) | [Press Release, dated February 2, 2023](lake_ex991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| LAKELAND INDUSTRIES, INC. | LAKELAND INDUSTRIES, INC. |
|  | /*s/ Charles D. Roberson* |
|  | Charles D. Roberson |
|  | Chief Executive Officer, President and Secretary |
|  | Date: February 2, 2023 |

---

## Exhibit 10.1

**EXHIBIT 10.1**

**[LAKELAND INDUSTRIES, INC.]**

February 1, 2023

Mr. Roger D. Shannon

\*\*\*

Dear Mr. Shannon:

The purpose of this letter is to confirm your employment with Lakeland Industries, Inc. on the following terms and conditions:

**1. <u>THE PARTIES</u>**

This is an Agreement, effective as of February 1, 2023 (the "<u>Effective Date</u>"), between Roger D. Shannon, residing at \*\*\*, (hereinafter referred to as "you"), and Lakeland Industries, Inc., a Delaware corporation, with a principal place of business located at 1525 Perimeter Parkway, Suite 325, Huntsville, AL 35806 (hereinafter the "<u>Company</u>").

**2. <u>TERM</u>**

The initial term of this Agreement shall be <u>12 months</u>, beginning on the Effective Date and ending on February 1, 2024 (the "<u>Initial Term</u>"). However, on the day the Initial Term would otherwise expire, the Agreement's duration shall automatically extend for successive 12-month periods, unless either party provides written notice of termination at least 90 days before the expiration of the then-current Term (for purposes of this Agreement, "<u>Term</u>" refers to the Initial Term and/or any successive 12-month extension).

**3. <u>CAPACITY</u>**

You shall be employed in the capacity of Chief Financial Officer of Lakeland Industries, Inc. ("<u>Your Position</u>") with such responsibilities and duties as may be assigned to you from time to time by the Company. You acknowledge and agree that these responsibilities and duties, together with the proprietary information to which you will have access in this role, make you uniquely essential to the Company's management, organization, or services.

You agree to devote your full time and attention and best efforts to the faithful and diligent performance of your duties to the Company and shall serve and further the best interests and enhance the reputation of the Company to the best of your ability.

**4. <u>COMPENSATION</u>**

As full compensation for your services, you shall receive the following from the Company:

(a) A base annual salary of no less than $300,000 payable bi-weekly (the " <u>Base Salary</u> ") subject to annual review by the Compensation Committee of the Board of Directors; and

(b) Participation in any of the Company's pension plans, profit sharing plans, medical and disability plans and 401(k) plans when any such plans are or become effective; and

(c) Such benefits as are provided from time to time by the Company to its officers and employees; and

(d) Reimbursement for any dues and expenses incurred by you that are necessary and proper in the conduct of the Company's business; and

(e) Participation, as determined in the discretion of the Compensation Committee of the Board of Directors of the Company (the "Compensation Committee"), in the Company's 2017 Equity Incentive Plan and any other restrictive stock, stock appreciation rights, stock option or other equity plans of the Company as may become effective; in this connection, it is intended that you will receive a grant of restricted stock, pursuant to the Company's LTIP program, at the time of next grant; and

(f) An annual bonus initially targeted at 40% of Base Salary, based upon such parameters, as determined by the Compensation Committee (an "Annual Bonus"), which target percentage is subject to annual review by the Compensation Committee.

**5. <u>NON-COMPETITION/SOLICITATION/CONFIDENTIALITY</u>**

During your employment with the Company and for one year thereafter, you shall not, either directly or indirectly, as an agent, employee, partner, stockholder, director, investor or otherwise, engage in a business that carries on a like business to the business conducted by the Company, in the market areas in which the Company generates sales. You shall also abide by the Code of Ethics and other corporate governance rules of the Company. You shall disclose prior to the execution of this Agreement (or later on as the case may be) all business relationships you presently have or contemplate entering into or enter into in the future that might affect your responsibilities or loyalties to the Company.

During your employment with the Company and for one year thereafter, you shall not, directly or indirectly, hire, offer to hire or otherwise solicit the employment or services of, any employee of the Company on behalf of yourself or any other person, firm or entity.

Except as may be required to perform your duties on behalf of the Company, you agree that during your employment with the Company and for a period of one year thereafter, you shall not, directly or indirectly, solicit, service, or accept business from any customers of the Company, on your own behalf or on behalf of any other person, firm or entity that carries on a like business to the business conducted by the Company.

Except as required in your duties to the Company, you shall not at any time during or after your employment, directly or indirectly, use or disclose any confidential or proprietary information relating to the Company or its business or customers which is disclosed to you or known by you as a consequence of or through your employment by the Company and which is not otherwise generally obtainable by the public at large. Confidential or proprietary information includes, but is not limited to, commercial relationships or contacts with specific or existing vendors, contractors, suppliers or clients; pricing information and methodology; compensation; customer lists; customer data and information; mailing lists and prospective customer information; financial and investment information; management and marketing plans; business strategy, technique and methodology; business models and data; processes and procedures; and Company provided files, software, code, reports, documents, manuals and forms used in the business which are treated as confidential to the business entity, in whatever medium provided or preserved, such as in writing or stored electronically.

In the event that any of the provisions in this **Section 5** shall ever be adjudicated to exceed limitations permitted by applicable law, you agree that such provisions shall be modified and enforced to the maximum extent permitted under applicable law.

You understand and agree that the Company may not be adequately compensated by damages for a breach by you of any of the covenants and agreements contained in this **Section 5** and that the Company shall, in addition to all other remedies, be entitled to injunctive relief and specific performance. You hereby affirmatively waive the requirement that the Company post any bond.

Nothing herein contained will be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of money damages, and if the Company prevails, it shall also be entitled to the payment of any and all reasonable fees, disbursements, and other charges of the attorneys and collection agents, court costs, and all others costs of enforcement. Likewise, if you prevail, you shall also be entitled to the payment of any and all reasonable fees disbursements and other charges of the attorneys and collections agents, court costs, and all other costs of defense.

For purposes of this **Section 5**, the term "<u>Company</u>" shall include all direct and indirectly owned subsidiaries of the Company.

You represent that you have carefully considered the terms of **Section 5**. You acknowledge and agree that these restrictions are reasonable and necessary to protect the Company's business and goodwill, as Your Position is uniquely essential to the Company's management, organization, or services.

**6. <u>TERMINATION</u>**

You or the Company may terminate your employment prior to the end of the Term upon written notice to the other party in accordance with the following provisions:

(a) **Voluntary Termination.** You may terminate your employment voluntarily at any time during the Term by providing the Company with 60 days prior written notice. If you do so, except for Good Reason (as defined below), you shall be entitled to receive from the Company your (i) accrued and unpaid Base Salary through the date of termination, (ii) any Annual Bonus earned for the year completed prior to the year of termination but not yet paid, and (iii) any other employee benefits generally paid by the Company up to the date of termination (collectively (i), (ii), and (iii), the " <u>Accrued Obligations</u> ").

(b) **Death.** This Agreement shall automatically terminate on the date of your death without further obligation to you other than for payment by the Company to your estate or designated beneficiaries, as designated in writing to the Company, of (i) the Accrued Obligations through the last day of the month in which your death occurs, and (ii) a pro-rata portion of the Annual Bonus, if any, for the year of termination up to and including the date of death which shall be determined in good faith by the Compensation Committee. Your estate or beneficiaries, as applicable, shall also be entitled to all other benefits generally paid by the Company on an employee's death.

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| | |
|:---|:---|
| (c) | **Disability**. This Agreement and your employment shall terminate without any further obligation to you if you become "totally disabled" (as defined below) other than for payment by the Company of (i) the Accrued Obligations through the last day of the month in which you are deemed to be totally disabled and (ii) a pro-rata portion of the Annual Bonus, if any, for the year of termination up to and including the date you are deemed to be totally disabled as determined in good faith by the Compensation Committee. |
|  | You shall be deemed to be "totally disabled" if you are unable, for any reason, to perform any of your duties and obligations to the Company, with or without a reasonable accommodation, for a period of 90 consecutive days or for periods aggregating 120 days in any period of 180 consecutive days. |
| (d) | **Cause**. The Company may terminate your employment at any time for "Cause" (as defined below) and this Agreement shall terminate immediately with no further obligations to you other than the Company shall pay you, within thirty days of such termination, the Accrued Obligations up to the date of such termination for Cause. |
| (e) | **Termination by the Company Without Cause or by you for Good Reason**. If, during the Term, the Company terminates your employment without Cause or you terminate your employment for Good Reason (as defined below), in either case, other than within 18 months of a Change in Control (which is covered by Subsection (f) below), you shall be entitled to receive from the Company, conditioned on your continued compliance with the restrictive covenants contained in **Section 5** hereof and your execution and non-revocation of a release of claims substantially in the form attached hereto as <u>Annex A</u>, (i) the Accrued Obligations payable within 15 days after the date of termination (or, in the case of the prior year's Annual Bonus, if any, at such time such bonus is payable pursuant hereto), (ii) an additional 12 months of your then current Base Salary, payable in equal monthly installments beginning with the first payroll date after the date on which the release of claims becomes effective and can no longer be revoked, and (iii) a pro rata portion of the Annual Bonus, if any, for the year of termination up to and including the date of termination which shall be determined in good faith by the Compensation Committee and paid at such time as such bonus is payable pursuant hereto. |
| (f) | **Termination by the Company Without Cause or by you for Good Reason within 18 Months After a Change in Control.** If, during the Term, the Company terminates your employment without Cause or you terminate your employment for Good Reason, in either such case, within 18 months of a Change in Control (as defined below), you shall be entitled to receive from the Company, subject to your continued compliance with the restrictive covenants contained in **Section 5** hereof and your execution and non-revocation of a release of claims substantially in the form attached hereto as <u>Annex A</u>, (i) the Accrued Obligations payable within fifteen days after termination (or, in the case of the prior year's Annual Bonus, if any, at such time such bonus is payable), (ii) a lump sum amount equal to 24 months of Base Salary in effect as of the date of termination of employment or the year immediately prior to the Change in Control, whichever is higher, and (iii) two times a target bonus amount, if any, in effect as of the date of termination of employment. The severance payments under sub-paragraphs (ii) and (iii) hereof shall be paid with the first payroll date after the date on which the release of claims becomes effective and can no longer be revoked. Any payment by the Company under this or any other section of this Agreement is subject to applicable tax withholdings. |
| (g) | Notwithstanding the foregoing, if your severance payments payable hereunder constitute nonqualified deferred compensation subject to 409A of the Code and the period in which you must execute the release begins in one calendar year and ends in another, the severance payments will be made in the later calendar year. |

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(h) For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Cause</u>" shall mean termination based upon: (A) your willful failure or refusal, other than due to disability, to substantially perform your material duties and responsibilities of Your Position after a written demand regarding such performance is delivered to you by the Company, which identifies the manner in which you have not performed your duties or responsibilities and a cure period of 60 days, (B) your commission of an act of fraud, theft, misappropriation, dishonesty or embezzlement, (C) your conviction for a felony or pleading *nolo contendere* to a felony, (D) your willful and continuing failure or refusal to carry out, or comply with, in any material respect any reasonable directive of the Chief Executive Officer or the Board of Directors of the Company consistent with the terms of this Agreement, or (E) your material breach of any provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Good Reason</u>" shall mean the occurrence of any of the following events without your prior written consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the failure of the Company to pay your Base Salary or Annual Bonus, if any, when due and if earned, other than an inadvertent administrative error or failure, within 10 days of receipt of notice by you,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a material diminution in your title, authority or responsibilities from those described herein,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any material breach of this Agreement by the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a failure of the Company to have any successor assume in writing the obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "<u>Change in Control</u>" shall mean the occurrence of any of the following events during the Term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Person (which for purposes of this **Section 6(h)(iii)** shall include natural persons, partnerships, corporations and any other entities), or more than one Person acting as a group (as the term "group" is contemplated for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>")) ("<u>Group</u>"), acquires ownership of stock of the Company that, together with stock held by such Person or Group, constitutes more than 50% of the total fair market value and total voting power of the stock of the Company; provided, however, that for purposes of this subsection (A), the following acquisitions shall not be deemed to result in a Change in Control: (1) any acquisition directly from the Company, (2) any acquisition by the Company or an affiliate of the Company, or (3) any acquisition by (x) any employee benefit plan (or related trust) intended to be qualified under Section 401(a) of the Code or (y) any trust established in connection with any broad-based employee benefit plan sponsored or maintained, in each case, by the Company or any corporation controlled by the Company (collectively (1), (2) and (3), the "Exempt Acquisitions");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Person, or more than one Person acting as a Group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition) ownership of stock of the Company possessing 30% or more of the total voting power of the Company's stock; provided, however, that none of the Exempt Acquisitions shall constitute a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) individuals who, as of the Effective Date, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, as a member of the Incumbent Board, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest or other actual or threatened solicitation of proxies or consents by or on behalf of a Person or group other than the Board; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a Person, or more than one Person acting as a Group (other than a subsidiary or an affiliate of the Company), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition) assets of the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all assets of the Company immediately before such acquisition(s).

Notwithstanding the foregoing, a Change in Control shall not include any event, circumstance or transaction that results from an action of any Person or group which includes, is affiliated with or is wholly or partly controlled by one or more executive officers of the Company and in which you participate directly or actively (other than a renegotiation of your employment arrangements or in your capacity as an employee of the Company or any successor entity thereto or to the business of the Company).

**7. <u>NOTICES</u>**

Any notices required to be given under this Agreement shall, unless otherwise agreed to by you and the Company, be in writing and by certified mail, return receipt requested and mailed to the Company at its executive offices, currently at 1525 Perimeter Parkway, Suite 325, Huntsville, AL 35806, or to you at your home address at \*\*\*, or at such other address as may be provided by the Company or you.

**8. <u>ASSIGNMENT AND SUCCESSORS</u>**

The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors of the Company. This Agreement may not be assigned by the Company unless the assignee or successor (as the case may be) expressly assumes the Company's obligations hereunder in writing. In the event of a successor to the Company or the assignment of the Agreement, the term "Company" as used herein shall include any such successor or assignee.

**9. <u>WAIVER OR MODIFICATION</u>**

No waiver or modification in whole or in part of this Agreement or any term or condition hereof shall be effective against any party unless in writing and duly signed by the party sought to be bound. Any waiver of any breach of any provision hereof or right or power by any party on one occasion shall not be construed as a waiver of or a bar to the exercise of such right or power on any other occasion or as a waiver of any subsequent breach.

**10. <u>SEPARABILITY</u>**

Any provision of this Agreement which is unenforceable or invalid in any respect in any jurisdiction shall be ineffective in such jurisdiction to the extent that it is unenforceable or invalid without affecting the remaining provisions hereof, which shall continue in full force and effect. The unenforceability or invalidity of any provision of the Agreement in one jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

**11. <u>GOVERNING LAW AND CHOICE OF FORUM</u>**

This Agreement shall be interpreted and construed in accordance with the laws of the State of Alabama without regard to its choice of law principles. Any dispute, controversy or claim of any kind arising under, in connection with, or relating to this Agreement or your employment with the Company shall be resolved exclusively by binding arbitration. Such arbitration shall be conducted in Huntsville, Alabama, in accordance with the rules of the American Arbitration Association ("<u>AAA</u>") then in effect. The costs of the arbitration (fees to the AAA and for the arbitrator(s)) shall be shared equally by the parties, subject to apportionment or shifting in the arbitration award. In addition, the prevailing party in arbitration shall be entitled to reimbursement by the other party for its reasonable attorney's fees incurred. Judgment may be entered on the arbitration award in any court of competent jurisdiction. You also agree that the forum for any lawsuit arising in whole or part from this Agreement is a court of competent jurisdiction sitting in Morgan County, Alabama.

**12. <u>ENTIRE AGREEMENT</u>**

This Agreement and the Annex hereto constitutes the entire agreement between the parties hereto with respect to the matters referred to herein, and supersedes any other agreement or promise relating to these matters.

**13. <u>HEADINGS</u>**

The headings contained in this Agreement are for convenience only and shall not effect, restrict or modify the interpretation of this Agreement.

——SIGNATURES ON NEXT PAGE——

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| | |
|:---|:---|
| AGREED AND ACCEPTED: | AGREED AND ACCEPTED: |
| By: | /s/ Roger D. Shannon |
|  | Roger D. Shannon |
| Date: | January 30, 2023 |
| Lakeland Industries, Inc. | Lakeland Industries, Inc. |
| By: | /s/ Charles D. Roberson |
|  | Charles D. Roberson, CEO and President |
| Date: | January 30, 2023 |

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**ANNEX A**

**<u>General Release</u>**

IN CONSIDERATION OF good and valuable consideration, the receipt of which is hereby acknowledged, and in consideration of the terms and conditions contained in the Employment Agreement, effective as of February 1, 2023 (the "<u>Agreement</u>"), by and between **Roger D. Shannon** (the "<u>Executive</u>") and Lakeland Industries, Inc. (the "<u>Company</u>"), the Executive on behalf of himself and his heirs, executors, administrators, assigns, attorneys, successors, and assigns, knowingly and voluntarily, hereby waives, remits, releases and forever discharges the Company and its past, present and future subsidiaries, divisions, affiliates and parents, and all of their respective current and former officers, directors, stockholders, employees, agents, attorneys, lenders, and/or owners, and their respective successors, and assigns and any other person or entity claimed to be jointly or severally liable with the Company or any of the aforementioned persons or entities, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries (the "<u>Released Parties</u>") of and from any and all manner of actions and causes of action, suits, debts, dues, accounts, bonds, covenants, contracts, agreements, judgments, charges, claims, complaints, damages, demands, and obligations of any other nature whatsoever, past or present, known or unknown ("<u>Losses</u>") which the Executive and his heirs, executors, administrators, and assigns have, had, or may hereafter have, against the Released Parties or any of them arising out of or by reason of any cause, matter, or thing whatsoever from the beginning of the world to the date hereof.

This release includes, but is not limited to, Losses arising out of or relating to the Executive's employment by the Company and the cessation thereof, and any and all matters arising under any federal, state, or local statute, rule, or regulation, or principle of contract law or common law relating to the Executive's employment by the Company and the cessation thereof, including, <u>but not limited to</u>, the Family and Medical Leave Act of 1993, as amended, 29 U.S.C. §§ 2601 <u>et</u> <u>seq</u>., Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. §§ 2000 et seq., the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. §§ 621 <u>et</u> <u>seq</u>. (the "<u>ADEA</u>"), the Older Workers Benefit Protection Act ("<u>OWBPA</u>"), the Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §§ 12101 <u>et</u> <u>seq</u>., the Worker Adjustment and Retraining Notification Act of 1988, as amended, 29 U.S.C. §§2101 <u>et</u> <u>seq</u>., the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 <u>et seq</u>., any applicable state or local law or regulation relating to employment, and any claim for or obligation to pay for attorneys' fees, costs, fees, or other expenses. It is understood that nothing in this general release is to be construed as an admission on behalf of the Released Parties of any wrongdoing with respect to the Executive, any such wrongdoing being expressly denied.

The Executive does not release or discharge the Released Parties from (i) any rights to any payments, benefits or reimbursements due to the Executive under the Agreement; or (ii) any rights to any vested benefits due to the Executive under any employee benefit plans sponsored or maintained by the Company.

This release also bars any and all claims for future damages allegedly arising from the alleged continuation of the effect of any past action, omission or event, except nothing herein waives Executive's rights to enforce this Agreement.

The Executive and the Company acknowledge that nothing in this Agreement limits or affects either party's right, where applicable, to file or participate in an investigative proceeding conducted by the Equal Employment Opportunity Commission ("<u>EEOC</u>"), the Securities and Exchange Commission (the "<u>SEC</u>") or any federal, state or local government agency. However, to the maximum extent permitted by law, the Executive agrees that if such an administrative claim is made, the Executive agrees to release, waive, relinquish and forego all legal relief, equitable relief, statutory relief, reinstatement, back pay, front pay and any other damages, benefits, remedies, or relief that Executive may be entitled to as a result of any prosecution of any administrative agency claim or commission charge, and the Executive shall not be entitled to recover any individual monetary award or relief or other individual remedies (other than monetary awards from the SEC's whistleblower program). Rights not waivable by law are not waived by this Agreement.

The Executive represents and warrants that he fully understands the terms of this General Release, that he has been encouraged to seek, and has sought, the benefit of advice of legal counsel, and that he knowingly and voluntarily, of his own free will, without any duress, being fully informed, and after due deliberation, accepts its terms and signs below as his own free act. Except as otherwise provided herein, the Executive understands that as a result of executing this General Release, he will not have the right to assert that the Company or any other of the Released Parties unlawfully terminated his employment or violated any of his rights in connection with his employment or otherwise.

If Executive is 40 years of age or older, be advised that Executive has or may have specific rights and/or claims under the Age Discrimination in Employment Act of 1967 ("<u>ADEA</u>") and Executive agrees that in consideration for the Severance Payment, he specifically and voluntarily waives such rights and/or claims under the ADEA which he might have against the Releasees to the extent such rights and/or claims arose prior to the date this Agreement was executed. Executive understands that rights and/or claims under the ADEA which may arise after the date this Agreement is executed are not waived by him.

By signing this General Release, the Executive does not release: (i) any right he may have to challenge the validity of this General Release under the ADEA or the OWBPA; or (ii) his right to enforce this General Release.

Executive hereby affirms and acknowledges the following:

a. He has not filed, caused to be filed, or presently is a party to any claim, lawsuit, charge, arbitration, complaint, action, or proceeding against any of the Released Parties herein in any forum or form.

b. He has been granted any leave to which he was entitled under the Family and Medical Leave Act or related state or local leave or disability accommodation laws.

c. He has not given, sold, assigned or transferred to anyone else, any claim, or a portion of a claim referred to in this Agreement.

d. He has no known workplace injury or occupational disease and has been provided with and/or has not been denied any leave requested under the Family and Medical Leave Act. He acknowledges and represents that he has no intention of filing any claim for workers' compensation benefits of any type against the Company or any of the Released Parties, and that he will not file or attempt to file any claims for workers' compensation benefits of any type against the Company or any related Released Parties. He acknowledges that the Company has relied upon these representations, and that the Company would not have entered into this Agreement but for these representations. As a result, he agrees, covenants, and represents that the Company may, but is not obligated to, submit this Agreement to the Workers' Compensation Appeals Board for approval as a compromise and release as to any workers compensation claim that he files at any time against the Company or any of the Released Parties.

e. He further affirms that he has not been retaliated against for reporting any allegations of wrongdoing by any of the Released Parties or their officers and directors, including any allegations of corporate fraud or bribery. He and the Company acknowledge that this Agreement does not limit either party's right, where applicable, to file or participate in an investigative proceeding of any federal, state or local government agency. Except as to the extent permitted by law, he agrees that if such an administrative claim is made, he shall not be entitled to recover any individual monetary award or relief or other individual remedies.

The Executive may take 21 days to consider whether to execute this General Release. Upon the Executive's execution of this general release, the Executive will have 7 days after such execution in which he may revoke such execution. For such a revocation to be effective, it must be delivered so that the undersigned person receives it in-hand or via fax on or before the expiration of the 7 day revocation period. This Agreement shall become effective on the first day following the expiration of the 7 day revocation period.

SIGNATURE PAGE FOLLOWS

INTENDING TO BE LEGALLY BOUND, I hereby set my hand below:

Roger D. Shannon <br>Dated:

STATE OF __________) ) s/s: <br> COUNTY OF _______)

On the ___ day of ___________, 20___, before me personally came Roger D. Shannon, to me known, and known to me to be the individual described in, and who executed the foregoing General Release, and duly acknowledged to me that he executed the same.

Notary Public

## Exhibit 99.1

**EXHIBIT 99.1**

***Press Release***

**Lakeland Industries Announces CFO Transition**

**HUNTSVILLE, AL / ACCESSWIRE / February 2, 2023 /** Lakeland Industries, Inc. (NASDAQ: LAKE) (the "Company" or "Lakeland"), a leading global manufacturer of protective clothing for industry, healthcare and first responders on the federal, state and local levels, today announced the appointment of Roger D. Shannon as the Company's Chief Financial Officer effective, February 1, 2023. Mr. Shannon will succeed Allen E. Dillard, who has served as the Company's Chief Financial Officer since August 12, 2019. Mr. Dillard will continue as the Company's Chief Operating Officer, a role he has held since 2021, and will have a more dedicated focus on the expansion of the Company's strategic production capabilities, the integration of acquired businesses, and global procurement and production planning.

Mr. Shannon, who has over 35 years of experience in finance, strategy, accounting and FP&A, will serve as a member of the executive leadership team and report directly to President and Chief Executive Officer, Charles D. Roberson. Most recently, Mr. Shannon served as CFO and Treasurer at Charah Solutions, Inc. Prior to that role, he was CFO at Adtran, Inc. Before joining Adtran, Mr. Shannon served as CFO and Treasurer for Steel Technologies for more than nine years. Earlier in his career, he performed a variety of senior finance roles at Brown-Forman Corporation and British American Tobacco, as well as accounting positions at Vulcan Materials Company, Lexmark International, and KPMG. Mr. Shannon is a CPA and a CFA® charter holder who received a B.S. in accounting from Auburn University and an MBA from the Terry College of Business at the University of Georgia.

"We are very pleased to welcome Roger as our CFO," said Charles D. Roberson, Lakeland's President and Chief Executive Officer. "He brings over sixteen years of strategic and financial leadership as a public and private company CFO with extensive global finance and public accounting experiences across multiple industries, and he has a proven track record of driving results."

![](lake_ex991img3.jpg)

**About Lakeland Industries, Inc.**

We manufacture and sell a comprehensive line of industrial protective clothing and accessories for the industrial and public protective clothing market. Our products are sold globally by our in-house sales teams, our customer service group, and authorized independent sales representatives to a network of over 1,600 global safety and industrial supply distributors. Our authorized distributors supply end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories and the utilities industry. In addition, we supply federal, state and local governmental agencies and departments, such as fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control. Internationally, we sell to a mixture of end users directly, and to industrial distributors depending on the particular country and market. In addition to the United States, sales are made to more than 50 foreign countries, the majority of which were into China, the European Economic Community ("EEC"), Canada, Chile, Argentina, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India, Uruguay and Southeast Asia.

For more information concerning Lakeland, please visit the Company online at www.lakeland.com.

**Contacts:**

Lakeland Industries, Inc.

256-445-4100

Allen Dillard

aedillard@lakeland.com

Alpha IR Group

312-445-2870

Robert Winters or Stephen Poe

LAKE@alpha-ir.com

**Source:** Lakeland Industries, Inc.