# EDGAR Filing Document

**Accession Number:** 0000798081
**File Stem:** 0001193125-26-264001
**Filing Date:** 2026-6
**Character Count:** 252908
**Document Hash:** 36ebc8b3ca2fae97d4c356f1c038ca27
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-264001.hdr.sgml**: 20260609

**ACCESSION NUMBER**: 0001193125-26-264001

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 64

**CONFORMED PERIOD OF REPORT**: 20260430

**FILED AS OF DATE**: 20260609

**DATE AS OF CHANGE**: 20260609

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LAKELAND INDUSTRIES INC
- **CENTRAL INDEX KEY:** 0000798081
- **STANDARD INDUSTRIAL CLASSIFICATION:** ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 133115216
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0131

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-15535
- **FILM NUMBER:** 261077008

**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='ASCII'? 10-Q

## UNITED STATES
**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM** 10-Q

------

**(Mark one)** 

---

| |
|:---|
| QU**ARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| **For the quarterly period ended** **April 30,** 2026 |
| **OR** |
| TR**ANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| **For the transition period from _______________ to _______________** |

---

## Commission File Number: 0-15535
LAKELAND INDUSTRIES, INC.

**(Exact name of Registrant as specified in its charter)**

---

| | |
|:---|:---|
| Delaware | 13-3115216 |
| **(State or Other Jurisdiction of** | **(I.R.S. Employer** |
| **Incorporation or Organization)** | **Identification No.)** |
| 1525 Perimeter Parkway**,** Suite 325 Huntsville**,** AL | 35806 |
| **(Address of Principal Executive Offices)** | **(Zip Code)** |

---

**(Registrant's telephone number, including area code) (**256**)** 350-3873

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbol(s)** | **Name of each exchange**<br>**on which registered** |
| Common Stock | LAKE | NASDAQ |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☒ |
| Nonaccelerated filer | ☐ | Smaller reporting company | ☒ |
| 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 pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes □ No ⌧

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

---

| | |
|:---|:---|
| **Class** | **Outstanding at June 5, 2026** |
| **Common Stock, $0.01 par value per share** | **9,869,164 Shares** |

---

------

**LAKELAND INDUSTRIES, INC.**

**AND SUBSIDIARIES**

**FORM 10-Q**

The following information of the Registrant and its subsidiaries is submitted herewith:

---

| | | |
|:---|:---|:---|
|  |  | Page |
| [**<u>PART I - FINANCIAL INFORMATION:</u>**](#part_i_financial_information) | [**<u>PART I - FINANCIAL INFORMATION:</u>**](#part_i_financial_information) |  |
| Item 1. | [<u>Financial Statements (Unaudited)</u>](#item_1_financial_statements) |  |
|  | [<u>Condensed Consolidated Statements of Operations for the three months ended April 30, 2026 and 2025</u>](#condensed_cons_statements_of_operations) | 3 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[<u>Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended April 30, 2026 and 2025</u>](#condensed_cons_statements_of_comp_income) | 4 |
|  | [<u>Condensed Consolidated Balance Sheets as of April 30, 2026 and January 31, 2026</u>](#condensed_consolidated_balance_sheets) | 5 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[<u>Condensed Consolidated Statements of Stockholders' Equity for the three months ended April 30, 2026 and 2025</u>](#condensed_cons_statements_of_stoc_equity) | 6 |
|  | [<u>Condensed Consolidated Statements of Cash Flows for the three months ended April 30, 2026 and 2025</u>](#condensed_cons_statements_of_cash_flows) | 8 |
|  | [<u>Notes to Condensed Consolidated Financial Statements</u>](#notes_to_cond_conso_financial_statements) | 9 |
| Item 2. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion_and_analy) | 23 |
| Item 3. | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_3_quantitative_and_qualitative_disc) | 28 |
| Item 4. | [<u>Controls and Procedures</u>](#item_4_controls_and_procedures) | 29 |
| [**<u>PART II - OTHER INFORMATION:</u>**](#part_ii_other_information) | [**<u>PART II - OTHER INFORMATION:</u>**](#part_ii_other_information) |  |
| Item 1. | [<u>Legal Proceedings</u>](#item_1_legal_proceedings) | 31 |
| Item 2. | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2_unregistered_sales_equity_securit) | 31 |
| Item 5 | [<u>Other Information</u>](#item_5_other_information) | 31 |
| Item 6. | [<u>Exhibits</u>](#item_6_exhibits) | 32 |
|  | [<u>Signature Pages</u>](#signatures) | 33 |

---

------

**LAKELAND INDUSTRIES, INC.**

**AND SUBSIDIARIES**

**PART I FINANCIAL INFORMATION**

**Item 1. Financial Statements**

LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

($000's except for share and per share information)

---

| | | |
|:---|:---|:---|
|  | Three Months Ended<br>April 30, | Three Months Ended<br>April 30, |
|  | 2026 | 2025 |
| Net sales | $47416 | $46746 |
| Cost of goods sold | 32531 | 31102 |
| Gross profit | 14885 | 15644 |
| Operating expenses | 19064 | 20278 |
| Gain on sale of certain assets | (6467) |  |
| Operating income (loss) | 2288 | (4634) |
| Other income, net | 40 | 106 |
| Interest expense | (614) | (583) |
| Income (loss) before taxes | 1714 | (5111) |
| Income tax expense (benefit) | 1345 | (1198) |
| Net income (loss) | $369 | $(3913) |
| Net income (loss) per common share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.04 | $(0.41) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.04 | $(0.41) |
| Weighted average common shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 9862119 | 9498604 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 10293903 | 9498604 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

------

# LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

($000's)

---

| | | |
|:---|:---|:---|
|  | Three Months Ended<br>April 30, | Three Months Ended<br>April 30, |
|  | 2026 | 2025 |
| Net income (loss) | $369 | $(3913) |
| Other comprehensive income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | 387 | 751 |
| Comprehensive income (loss) | $756 | $(3162) |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

------

# ,LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(000's except for share information)

---

| | | |
|:---|:---|:---|
|  | April 30, | January 31, |
| **<u>ASSETS</u>** | 2026 | 2026 |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $17419 | $12515 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for credit losses of $1,075 and $1,064<br> at April 30, 2026 and January 31, 2026, respectively | 31461 | 32043 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 77715 | 82542 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid VAT and other taxes | 2767 | 2429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 7834 | 4657 |
| Total current assets | 137196 | 134186 |
| Property and equipment, net | 12334 | 11640 |
| Operating leases right-of-use assets | 10355 | 11248 |
| Deferred tax assets | 1148 | 1149 |
| Goodwill | 15203 | 15287 |
| Intangible assets, net | 30931 | 31724 |
| Other assets | 5171 | 4699 |
| Total assets | $212338 | $209933 |
| **<u>LIABILITIES AND STOCKHOLDERS' EQUITY</u>** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $16034 | $15565 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 6574 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and benefits | 4915 | 4984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses | 8588 | 8964 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax payable | 2274 | 1802 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of loans payable | 1404 | 1891 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 4629 | 4756 |
| Total current liabilities | 44418 | 37962 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 2116 | 2198 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 25771 | 30382 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term portion of operating lease liabilities | 9508 | 10264 |
| Total liabilities | 81813 | 80806 |
| Commitments and contingencies (Note 11) |  |  |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.01 par; authorized 1,500,000 shares (none issued) | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.01 par; authorized 20,000,000 shares; issued 11,220,327<br> and 11,164,336; outstanding 9,862,119 and 9,806,128 at<br> April 30, 2026 and January 31, 2026, respectively | 112 | 112 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost; 1,358,208 shares at April 30, 2026 and<br> January 31, 2026, respectively | (19979) | (19979) |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 130033 | 129391 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 24226 | 23857 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (3867) | (4254) |
| Total stockholders' equity | 130525 | 129127 |
| Total liabilities and stockholders' equity | $212338 | $209933 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

------

LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(UNAUDITED)

(000's except for share information)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2026 | Three Months Ended April 30, 2026 |
|  |  |  |  |  |  |  | Accumulated |  |
|  |  |  |  |  | Additional |  | Other |  |
|  | Common Stock | Common Stock | Treasury Stock | Treasury Stock | Paid-in | Retained | Comprehensive |  |
|  | Shares | Amount | Shares | Amount | Capital | Earnings | Loss | Total |
| **Balance, January 31, 2026** | 11164336 | $112 | (1358208) | $(19979) | $129391 | $23857 | $(4254) | $129127 |
| Net income |  |  |  |  |  | 369 |  | 369 |
| Other comprehensive income |  |  |  |  |  |  | 387 | 387 |
| Stock-based compensation: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock issued | 55991 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock plan |  |  |  |  | 800 |  |  | 800 |
| &nbsp;&nbsp;&nbsp;&nbsp;Return of shares in lieu of payroll withholding |  |  |  |  | (158) |  |  | (158) |
| **Balance, April 30, 2026** | $11220327 | $112 | $(1358208) | $(19979) | $130033 | $24226 | $(3867) | $130525 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

------

LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(UNAUDITED)

(000's except for share information)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2025 |
|  |  |  |  |  |  |  | Accumulated |  |
|  |  |  |  |  | Additional |  | Other |  |
|  | Common Stock | Common Stock | Treasury Stock | Treasury Stock | Paid-in | Retained | Comprehensive |  |
|  | Shares | Amount | Shares | Amount | Capital | Earnings | Loss | Total |
| **Balance, January 31, 2025** | 10856812 | $109 | (1358208) | $(19979) | $123136 | $50320 | $(6960) | $146626 |
| Net loss |  |  |  |  |  | (3913) |  | (3913) |
| Other comprehensive income |  |  |  |  |  |  | 751 | 751 |
| Dividends ($0.03 per share) |  |  |  |  |  | (285) |  | (285) |
| Stock-based compensation: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock issued | 13058 |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock plan |  |  |  |  | 329 |  |  | 329 |
| &nbsp;&nbsp;&nbsp;&nbsp;Return of shares in lieu of payroll withholding |  |  |  |  | (126) |  |  | (126) |
| **Balance, April 30, 2025** | 10869870 | $109 | (1358208) | $(19979) | $123339 | $46122 | $(6209) | $143382 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

------

# LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

# CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

# ($000's)

---

| | | |
|:---|:---|:---|
|  | Three Months Ended<br>April 30, | Three Months Ended<br>April 30, |
|  | 2026 | 2025 |
| Cash flows from operating activities: |  |  |
| Net income (loss) | $369 | $(3913) |
| Adjustments to reconcile net income (loss) to net cash used in operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (80) | 243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1291 | 1138 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of step-up in inventory basis |  | 447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock based and restricted stock compensation | 800 | 329 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment | (11) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of certain assets | (6467) |  |
| Change in operating assets and liabilities, net of effect of business acquisitions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 462 | 160 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 4652 | (3505) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid VAT and other taxes | (339) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (2305) | (160) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 531 | (1117) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 6574 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 310 | 1708 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 14 | (169) |
| Net cash provided by (used in) operating activities | 5801 | (4841) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (1391) | (1209) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of certain assets | 5066 |  |
| Net cash provided by (used in) investing activities: | 3675 | (1209) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Term loan borrowings | 26 | 2555 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments on debt facilities | (19094) | (237) |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit line borrowings | 14040 | 6600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid |  | (285) |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares returned to pay employee taxes under restricted stock program | (158) | (126) |
| Net cash (used in) provided by financing activities | (5186) | 8507 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of exchange rate changes on cash and cash equivalents | 614 | (1315) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase in cash and cash equivalents | 4904 | 1142 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at beginning of period | 12515 | 17476 |
| Cash and cash equivalents at end of period | $17419 | $18618 |
| <u>Supplemental disclosure of cash flow information:</u> |  |  |
| Cash paid for interest | $614 | $581 |
| Cash paid for taxes | $1040 | $643 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

------

# LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

# NOTES TO CONDENSED CON SOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

**1.** **Business**

Lakeland Industries, Inc. and Subsidiaries, doing business as "Lakeland Fire + Safety" ("Lakeland," the "Company," "we," "our" or "us"), manufacture and sell a comprehensive line of fire services and industrial protective clothing and accessories for the industrial and first responder markets. In addition, we provide decontamination, repair and rental services that complement our fire services portfolio. Our products are sold globally by our in-house sales teams, our customer service group, and authorized independent sales representatives to a strategic and selective global network of authorized distribution partners. Our authorized distributors supply end users across various industries, including integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical and high-tech electronics manufacturers, as well as scientific, medical laboratories and the utilities industry. We also supply federal, state and local governmental agencies and departments, including 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 mix of end-users directly and to industrial distributors, depending on the particular country and market. In addition to the United States (U.S.), sales are made into 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, Middle East, Southeast Asia, Australia, Hong Kong and New Zealand.

**2.** **Basis of Presentation**

The condensed consolidated financial statements of the Company are unaudited. These condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, that management considers necessary to fairly state the Company's results. Intercompany accounts and transactions have been eliminated. The results reported in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire fiscal year ending January 31, 2027, or for any future period. The January 31, 2026, Condensed Consolidated Balance Sheet data was derived from the audited Consolidated Balance Sheet as of that date but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the years ended January 31, 2026 and 2025, included in our most recent annual report on [Form 10-K filed on April 16, 202](https://www.sec.gov/ix?doc=/Archives/edgar/data/1451505/000145150521000020/rig-20201231x10k.htm)6.

In this Form 10-Q, (a) "FY" means fiscal year; thus, for example, FY27 refers to the fiscal year ending January 31, 2027, (b) "Q" refers to quarter; thus, for example, Q1 FY27 refers to the first quarter of the fiscal year ending January 31, 2027, (c) "Balance Sheet" refers to the unaudited condensed consolidated balance sheet, and (d) "Statement of Operations" refers to the unaudited condensed consolidated statement of operations.

<u>Recently Issued and Adopted Accounting Standards</u>

The Company considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued.

*Income Taxes*

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This guidance requires a public entity to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted, and this guidance should be applied prospectively but there is the option to apply it retrospectively. The Company prospectively adopted the provisions of this guidance in conjunction with our Form 10-K for our fiscal year ended January 31, 2026.

------

*Disaggregation of Income Statement Expenses*

In November 2024, the FASB issued ASU No. 2024-03 ("ASU 2024-03"), Disaggregation of Income Statement Expenses ("DISE"). ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. As revised by ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, the provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. With the exception of expanding disclosures to include more granular income statement expense categories, we do not expect the adoption of ASU 2024-03 to have a material effect on our consolidated financial statements taken as a whole.

*Credit Losses*

In July 2025, the FASB issued ASU No. 2025-05 ("ASU 2025-05"), Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This guidance provides a practical expedient that entities may elect when estimating expected credit losses for current accounts receivable and current contract assets, allowing entities to assume that conditions as of the balance sheet date remain unchanged over the life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements.

*Accounting for Internal-Use Software*

In September 2025, the FASB issued ASU No. 2025-06 ("ASU 2025-06"), "Intangibles-Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software." This ASU removes references to prescriptive and sequential software development project stages and provides updated guidance intended to simplify the capitalization and expense evaluation for internal-use software. ASU 2025-06 is effective for fiscal years beginning after December 17, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. This ASU may be applied prospectively, retrospectively, or with a modified transition approach. The Company is currently assessing the impact of adopting this standard on its consolidated financial statements.

**3.** **Acquisitions** 

***Acquisition of Arizona PPE Recon, Inc.***

On September 15, 2025, the Company acquired 100% of U.S.-based Arizona PPE Recon, Inc. ("Arizona PPE") for cash consideration of approximately $4.1 million, subject to post-closing adjustments and customary holdback provisions. Founded in 2016, Arizona PPE is the leading UL-certified independent services provider ("ISP") for performing advanced decontamination, inspection and repairs on firefighting garments for the Arizona market, as well as providing educational and training classes to fire departments and personnel to help them implement and adhere to NFPA 1851 guidelines.

Arizona PPE's operating results are included in our condensed consolidated financial statements from the acquisition date. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. Arizona PPE's operating results and assets, including acquired intangibles and goodwill, are reported as part of U.S. in our geographic segment reporting.

The following table summarizes the fair values of the Arizona PPE assets acquired and liabilities assumed at the date of the acquisition:

---

| | |
|:---|:---|
| Net working capital acquired, including cash of $0.1 million | $314 |
| Property, plant and equipment | 10 |
| Right of use assets | 399 |
| Customer relationships | 2600 |
| Trade names | 190 |
| Goodwill | 987 |
| Lease Liabilities | (399) |
| Total net assets acquired | $4100 |

---

------

Assets acquired and liabilities assumed in connection with the acquisition were recorded at estimated fair values. Estimated fair values were determined by management, based in part on an independent valuation performed by a third-party valuation specialist. The valuation methods used to determine the estimated fair value of intangible assets included the excess earnings approach for customer relationships using customer inputs and contributory charges and the relief from royalty method for trade names. Several significant assumptions and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to produce, tax rates, capital spending, discount rates, attrition rates and working capital changes. Cash flow forecasts were generally based on Arizona PPE's pre-acquisition forecasts and management estimates. Identifiable intangible assets with finite lives are subject to amortization over their estimated useful lives. The customer relationships and trade names and trademarks acquired in the Arizona PPE transaction are being amortized over periods of 13 years and 10 years, respectively, and are deductible for tax purposes.

Goodwill is calculated as the excess of the purchase price over the estimated fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the estimated fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result from combining the operations of Arizona PPE with our operations. Goodwill related to the Arizona PPE acquisition is deductible for tax purposes.

***Acquisition of California PPE Recon, Inc.***

On September 15, 2025, the Company acquired 100% of U.S.-based California PPE Recon, Inc. ("California PPE") for a combination of approximately $2.4 million in cash consideration and 227,728 unregistered shares of the Company's common stock with an estimated fair value of $3.3 million at the date of acquisition, subject to post-closing adjustments and customary holdback provisions. Founded in 2022, California PPE is a leading and rapidly expanding UL-certified ISP in the California firefighting services market, one of the largest fire markets in the U.S. It also provides advanced decontamination, repair, and inspection of firefighting personal protective equipment, along with rental services and sales of cleaning detergents, extractors, and dryers.

California PPE's operating results are included in our condensed consolidated financial statements from the acquisition date. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. California PPE's operating results and assets, including acquired intangibles and goodwill, are reported as part of U.S. in our geographic segment reporting.

The following table summarizes the fair values of the California PPE assets acquired and liabilities assumed at the date of the acquisition:

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| | |
|:---|:---|
| Net working capital acquired, including cash of $0.2 million | $681 |
| Property, plant and equipment | 746 |
| Right of use assets | 198 |
| Customer relationships | 3600 |
| Trade names | 210 |
| Goodwill | 1438 |
| Lease liabilities | (198) |
| Other liabilities assumed | (914) |
| Total net assets acquired | $5761 |

---

Assets acquired and liabilities assumed in connection with the acquisition were recorded at estimated fair values. Estimated fair values were determined by management, based in part on an independent valuation performed by a third-party valuation specialist. The valuation methods used to determine the estimated fair value of intangible assets included the excess earnings approach for customer relationships using customer inputs and contributory charges and the relief from royalty method for trade names. Several significant assumptions and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to produce, tax rates, capital spending, discount rates, attrition rates and working capital changes. Cash flow forecasts were generally based on California PPE's pre-acquisition forecasts and management estimates. Identifiable intangible assets with finite lives are subject to amortization over their estimated useful lives. The customer relationships and trade names and trademarks acquired in the California PPE transaction are being amortized over periods of 13 years and 10 years, respectively.

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Goodwill is calculated as the excess of the purchase price over the estimated fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the estimated fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result from combining the operations of California PPE with our operations. A portion of goodwill related to the California PPE acquisition is deductible for tax purposes.

The following unaudited pro forma information presents our combined results of operations as if the Arizona PPE and California PPE acquisitions had occurred at the beginning of FY26. The unaudited pro forma combined financial information was prepared using the acquisition method of accounting under existing U.S. GAAP. The Company has been treated as the acquirer. The unaudited pro forma financial information was prepared to give effect to events that are (1) directly attributable to the acquisition, (2) factually supportable, and (3) expected to have a continuing impact on the combined company's results. There were no material transactions between the Company and the acquired entities during the periods presented that are required to be eliminated. The unaudited pro forma combined financial information does not reflect cost savings, operating synergies or revenue enhancements that the combined companies may achieve or the costs to integrate the operations or the costs necessary to achieve cost savings, operating synergies or revenue enhancements.

**Pro forma combined financial information (Unaudited)**

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| | |
|:---|:---|
| *(in thousands, except per share amounts)* | Three Months Ended<br>April 30, 2025 |
| Net sales | $48058 |
| Net income | $(3710) |
| Basic earnings per share | $(0.39) |
| Diluted earnings per share | $(0.39) |

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The unaudited pro forma combined financial information is presented for information purposes only and is not intended to represent or be indicative of the combined results of operations or financial position that we would have reported had the acquisition been completed as of the date and for the period presented and should not be taken as representative of our consolidated results of operations or financial condition following the acquisition. In addition, the unaudited pro forma combined financial information is not intended to project the future results of the combined company.

**4.** **Inventories** 

Inventories consist of the following (in $000s):

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| | | |
|:---|:---|:---|
|  | April 30, 2026 | January 31, 2026 |
| Raw materials | $35038 | $40406 |
| Work-in-process | $1808 | 2465 |
| Finished goods | $45857 | 44380 |
| Excess and obsolete adjustments | $(4988) | (4709) |
| Total inventories | $77715 | $82542 |

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On March 27, 2026, the Company completed the sale of its High Performance and High Visibility inventory and intellectual property to an unrelated third party. The Company, for a six-month period, will manufacture and ship such inventory on behalf of the buyer; accordingly, any gain associated with such inventory and the related profit has been deferred and will be recognized over the six-month contract period.

**5.** **Goodwill and Intangible Assets, Net**

Changes in the carrying amount of goodwill for the three months ended April 30, 2026 and 2025, are as follows (in $000s):

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| | | |
|:---|:---|:---|
|  | 2026 | 2025 |
| Balance at January 31, | $15287 | $16240 |
| Currency translation | (84) | 842 |
| Balance at April 30, | $15203 | $17082 |

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Changes in intangible assets, net, during the three months ended April 30, 2026 and 2025, are as follows (in $000s):

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| | | |
|:---|:---|:---|
|  | 2026 | 2025 |
| Balance at January 31, | $31724 | $25503 |
| Amortization | (646) | (381) |
| Currency translation | (147) | 1026 |
| Balance at April 30, | $30931 | $26148 |

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Amortization expense was $0.6 million and $0.4 million in the three months ended April 30, 2026 and 2025, respectively, and was included in operating expenses on the condensed consolidated statements of operations.

**6.** **Long-Term Debt** 

**Revolving Credit Facility**

On June 25, 2020, the Company entered into a Loan Agreement (the "Original Loan Agreement") with Bank of America, N.A. ("Lender"), as amended by Amendment No. 1 to the Loan Agreement, dated June 18, 2021 ("Amendment No. 1"), Amendment No. 2 to the Loan Agreement, dated March 3, 2023 ("Amendment No. 2"), Amendment No. 3 to the Loan Agreement, dated November 30, 2023 ("Amendment No. 3"), Amendment No. 4 to the Loan Agreement, dated March 28, 2024 ("Amendment No. 4"), Amendment No. 5 to the Loan Agreement, dated December 12, 2024 ("Amendment No. 5"), and Amendment No. 6 to the Loan Agreement, dated July 7, 2025 ("Amendment No. 6" and, collectively with Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, and Amendment No. 5, the "Loan Agreement Amendments"; and the Original Loan Agreement, as amended by the Loan Agreement Amendments, the "Amended Loan Agreement").

The Amended Loan Agreement provides the Company with a secured revolving credit facility of up to $40.0 million of borrowings (giving effect to the reduction of such limit following the application of the net proceeds from the Company's January 2025 equity issuance). The revolving credit facility includes a $10.0 million letter of credit sub-facility. The credit facility matures on December 12, 2029.

Borrowings under the revolving credit facility bear interest at a rate per annum equal to the sum of (i) the greater of the daily Secured Overnight Financing Rate ("SOFR") or an index floor of 1% plus (ii) the Applicable Rate (as defined in the Amended Loan Agreement). The Applicable Rate is based upon a funded debt to EBITDA ratio (discussed below) and includes four different levels constituting a SOFR margin range from 1.25% to 2.00%. All outstanding principal and unpaid accrued interest under the revolving credit facility is due and payable on the maturity date. On a one-time basis, and subject to there not existing an event of default, the Company may elect to convert up to $5.0 million of the then outstanding principal of the revolving credit facility to a term loan facility with an assumed amortization of 15 years and the same interest rate and maturity date as the revolving credit facility. The Amended Loan Agreement provides for a fee on any difference between the line of credit commitment and the amount of credit it actually uses, determined by the daily amount of credit outstanding during the specified period. Such fee is calculated at the Applicable Rate and is payable quarterly.

The Company made certain representations and warranties to the Lender in the Amended Loan Agreement that are customary for credit arrangements of this type. The Company also agreed to maintain, as of the end of each fiscal quarter a minimum "basic fixed charge coverage ratio" (as defined in the Amended Loan Agreement) of at least 1.20x and a "funded debt to EBITDA ratio" (as defined in the Amended Loan Agreement) not to exceed 3.5x (with step-downs to 3.25x and 3.0x on February 1, 2026 and February 1, 2027, respectively), in each case for the trailing 12-month period ending with the applicable quarterly reporting period. In addition, the Company has agreed to maintain a springing "asset coverage ratio" (as defined in the Amended Loan Agreement) of at least 1.10x, but only to the extent that the maximum funded debt to EBITDA ratio exceeds 3.25x at any reporting period. The Company was in compliance with all of its debt covenants as of April 30, 2026.

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The Company also agreed to certain negative covenants under the Amended Loan Agreement that are customary for credit arrangements of this type, including restrictions regarding the ability of the Company and/or its subsidiaries to conduct business, grant liens, make certain investments, and incur additional indebtedness, which negative covenants are subject to certain exceptions. Moreover, the Amended Loan Agreement contains restrictions on the Company's ability to enter into mergers and other business combination transactions and to purchase or acquire other businesses or their assets, although the Company may purchase a business or its assets without the consent of the Lender if the aggregate amount of consideration paid for by the Company is less than $26.0 million for any individual acquisition or $36.0 million on a cumulative basis for all such acquisitions or purchases subsequent to the date of Amendment No. 5. The Amended Loan Agreement also authorizes the Company to enter into additional lines of credit or incur liabilities in connection with the acquisitions of foreign subsidiaries in foreign countries where the Lender lacks a physical presence (such amounts not to exceed $10.0 million in the aggregate).

The Amended Loan Agreement contains customary events of default that include, among other things (subject to any applicable cure periods and materiality qualifier), non-payment of principal, interest or fees, defaults under related agreements with the Lender, cross-defaults under agreements for other indebtedness, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments and material adverse change. Upon the occurrence of an event of default, the Lender may terminate all loan commitments, declare all outstanding indebtedness owing under the Amended Loan Agreement and related documents to be immediately due and payable, and may exercise its other rights and remedies provided for under the Amended Loan Agreement.

In connection with the Amended Loan Agreement, the Company entered into with the Lender (i) a security agreement dated June 25, 2020, pursuant to which the Company granted to the Lender a first priority perfected security interest in substantially all of the personal property and the intangibles of the Company, and (ii) a pledge agreement, dated June 25, 2020, pursuant to which the Company granted to the Lender a first priority perfected security interest in the stock of its subsidiaries (limited to 65% of those subsidiaries that are considered "controlled foreign subsidiaries" as set forth in the Internal Revenue Code and regulations).

As of April 30, 2026, the Company had no borrowings outstanding on the letter of credit sub-facility and borrowings of $23.8 million outstanding under the revolving credit facility, and there was $16.2 million of additional available credit under the Loan Agreement. As of January 31, 2026, the Company had no borrowings outstanding on the letter of credit sub-facility and borrowings of $28.5 million outstanding under the revolving credit facility, and there was $11.5 million of additional available credit under the Loan Agreement. The interest rate on outstanding borrowings was 5.74% at April 30, 2026 and 5.76% at January 31, 2026.

**Lakeland UK Borrowings**

On December 31, 2014, the Company and Lakeland Industries Europe, Ltd. ("Lakeland UK"), a wholly owned subsidiary of the Company, amended the terms of its existing line of credit facility with HSBC Bank to provide for (i) a one-year extension of the maturity date of the existing financing facility to December 19, 2016, (ii) an increase in the facility limit from £1.3 million (approximately $1.9 million, based on exchange rates at time of closing) to £1.5 million (approximately $2.3 million, based on exchange rates at time of closing), and (iii) a decrease in the annual interest rate margin from 3.46% to 3.0%. In addition, pursuant to a letter agreement dated December 5, 2014, the Company agreed that £0.4 million (approximately $0.6 million, based on exchange rates at the time of closing) of the note payable by Lakeland UK to the Company shall be subordinated in priority of payment to the subsidiary's obligations to HSBC under the financing facility. This agreement has been subsequently amended with the most recent amendment dated March 8, 2022. The cumulative result of the amendments through March 8, 2022, reflects a reduction of the service charge to 0.765%. The agreement can be terminated with three months' notice. There were no borrowings outstanding under this facility at April 30, 2026 and January 31, 2026.

**Pacific Helmets Borrowings**

Pacific Helmets has a term loan facility with the Bank of New Zealand. The facility includes two term loans. The first term loan of 1.5 million NZD matured on December 17, 2025, carried an interest rate of 2.3% per annum and required monthly payments of 19,350.27 NZD with the outstanding balance due upon maturity. This term loan was repaid in full during FY26. The second term loan of 0.5 million NZD matures on November 18, 2026, carries an interest rate of 8.07% per annum and requires monthly payments of 10,545 NZD with the outstanding balance due upon maturity. As of April 30, 2026 and January 31, 2026, the outstanding balance under the term loans was less than $0.1 million and $0.1 million, respectively.

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**Jolly Borrowings**

On May 9, 2024, Jolly entered into a term loan agreement for 1.5 million EUR to support working capital requirements with Banca Intesa Spa. The term loan matures on March 31, 2027, and carries an interest rate of 5.42%. The term loan is being repaid in 11 quarterly installments of 0.1 million EUR. The loan is guaranteed by SACE S.p.A., the Italian state-owned export credit finance agency.

On March 6, 2025, Jolly entered into a term loan agreement for 2.0 million EUR to support working capital requirements with Banca Intesa Spa. The term loan matures on September 30, 2028, and carries an interest rate with a fixed rate portion of 1.45% and a variable rate portion based on the three-month EURIBOR rate. The interest rate at April 30, 2026 was 3.935%. The term loan will be repaid in 11 quarterly installments of 0.2 million EUR, beginning September 30, 2025. Interest payments are made quarterly. The loan is guaranteed by SACE S.p.A., the Italian state-owned export credit finance agency.

As of April 30, 2026 and January 31, 2026, the outstanding balance under the term loans was $2.3 million and $2.7 million, respectively.

**LHD Borrowings**

Prior to the Company's acquisition, LHD secured a federally guaranteed term loan of 0.8 million EUR from Commerzbank AG under the "KfW Quick Loan 2020" program, launched by the German government in 2020 to support small and medium-sized enterprises affected by the COVID-19 crisis. Repayments of the loan, which matures on June 30, 2030, are made in quarterly installments of 25,000 EUR. The loan carries an interest rate of 3% per annum, with interest payments being due in arrears at the end of each quarter. As of April 30, 2026 and January 31, 2026, the outstanding balance was $0.5 million. LHD also had other borrowings outstanding of approximately $0.2 million as of April 30, 2026 and January 31, 2026.

**Veridian Borrowings**

Prior to the Company's acquisition, in February 2024, Veridian secured a term loan with U.S. Bank for a piece of equipment. The loan is for 60 months with monthly payments of approximately $8,000. The interest rate on the loan is 5.13%. As of April 30, 2026 and January 31, 2026, the outstanding balance was $0.3 million.

Approximate maturities of our term loans over the next five years from April 30, 2026, are $1.4 million in FY27, $1.3 million in FY28, $0.4 million in FY29, $0.2 million in FY30, and $23.9 million thereafter.

**7.** **Concentration of Risk**

<u>Credit Risk</u>

Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents, and trade receivables. The concentration of credit risk with respect to trade receivables is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across geographic areas principally within the U.S. The Company routinely addresses the financial strength of its customers and, as a consequence, believes that its receivable credit risk exposure is limited. The Company does not require customers to post collateral.

The Company maintains foreign cash deposits with various financial institutions located in Asia, Europe, Latin America and Oceania. These depositories include both multinational banks and locally regulated institutions. The Company monitors the creditworthiness of its foreign financial depositories using credit ratings and other relevant financial information, which may vary by country. Additionally, cash balances in banks in the U.S. are insured by the Federal Deposit Insurance Corporation subject to certain limitations. As of April 30, 2026, approximately $1.9 million was held in U.S. bank accounts, and approximately $15.5 million was held in foreign bank accounts, of which $16.6 million was uninsured. As of January 31, 2026, approximately $1.5 million was held in U.S. bank accounts and approximately $11.0 million was held in foreign bank accounts, of which $11.7 million was uninsured.

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**8.** **Stockholders' Equity**

On June 21, 2017, the stockholders of the Company approved the Lakeland Industries, Inc. 2017 Equity Incentive Plan (the "2017 Plan"). The executive officers and all other employees and directors of the Company, including its subsidiaries, are eligible to participate in the 2017 Plan. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the "Committee"), except that with respect to all non-employee directors, the Committee shall be deemed to include the full Board. The 2017 Plan provides for the grant of equity-based compensation in the form of stock options, restricted stock, restricted stock units, performance shares, performance units, or stock appreciation rights ("SARs").

An aggregate of 1,240,000 shares of the Company's common stock are currently authorized for issuance under the 2017 Plan, as amended, subject to adjustment as provided in the 2017 Plan for stock splits, dividends, distributions, recapitalizations and other similar transactions or events. If any shares subject to an award are forfeited, expire, lapse or otherwise terminate without issuance of such shares, such shares shall, to the extent of such forfeiture, expiration, lapse or termination, again be available for issuance under the 2017 Plan.

The Company recognized total stock-based compensation costs, which are reflected in operating expenses (in $000's):

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>April 30, | Three Months Ended<br>April 30, |
|  | 2026 | 2025 |
| 2017 Plan: |  |  |
| Total restricted stock and stock option programs | $800 | $329 |
| Total income tax expense recognized for stock-based<br> compensation arrangements | $168 | $69 |

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***Restricted Stock and Restricted Stock Units*** 

Under the 2017 Plan, as described above, the Company awarded performance-based and service-based shares of restricted stock and restricted stock units to eligible employees and directors. The following table summarizes the activity under the 2017 Plan for the three months ended April 30, 2026 and 2025, respectively. This table reflects the amount of awards granted at the number of shares that would be vested if the Company were to achieve the target performance level under the then-outstanding performance-based grants.

Changes in performance-based and service-based shares outstanding during the three months ended April 30, 2026 are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Performance-<br>Based | Service-<br>Based | Total | Weighted<br>Average<br>Grant Date<br>Fair Value |
| Outstanding at January 31, 2026 | 265158 | 212106 | 477264 | $20.84 |
| Awarded |  | 3500 |  | $10.05 |
| Vested | (5206) | (40233) |  | $9.73 |
| Forfeited | (1846) | (1696) |  |  |
| Outstanding at April 30, 2026 | 258106 | 173677 | 431783 | $22.10 |

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Changes in performance-based and service-based shares outstanding during the three months ended April 30, 2025 are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Performance-<br>Based | Service-<br>Based | Total | Weighted<br>Average<br>Grant Date<br>Fair Value |
| Outstanding at January 31, 2025 | 69670 | 182135 | 251805 | $17.36 |
| Awarded |  | 65108 | 65108 | $16.14 |
| Vested | (3304) | (12435) | (15739) | $20.60 |
| Forfeited |  |  |  |  |
| Outstanding at April 30, 2025 | 66366 | 234808 | 301174 | $16.93 |

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For performance-based awards granted in FY23, FY24 and FY25, the actual number of shares of common stock of the Company, if any, to be earned by the award recipients is determined over a three-year performance measurement period based on measures determined in advance by the Compensation Committee of the Board of Directors of the Company. For the 2022 grants, the performance measures include Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA") margin, revenue growth, and return on invested capital. Performance measures for the 2023 grants are revenue growth, EBITDA margin and return on invested capital. The performance measures for the April 2024 grants are aggregate revenue during FY25, FY26 and FY27, EBITDA margin and free cash flow margin.

With respect to performance-based awards granted in May 2025, the performance measures are the Company's total revenue, the Company's fire segment revenue, and its adjusted EBITDA. Each of these metrics will be independently measured against Minimum, Target, and Maximum performance targets established by the Compensation Committee, against which the Company's performance will be measured on an annual basis at the end of each fiscal year beginning January 31, 2029 through January 31, 2031. The performance-based awards granted in July 2025 were granted to officers who elected to receive such awards in lieu of a portion of their short-term incentive cash compensation for FY26 and the performance measures for such awards were measured following the end of FY26 and included annual revenue, adjusted EBITDA, free cash flow margin and individual executive goals. None of the performance-based awards granted in July 2025 were earned and thus no shares of common stock were issued to the executive officers. In September 2025, the Company granted a one-time award to a recipient consisting of service-based and performance-based awards. The performance measures for the performance-based award will be measured following the end of FY29 and include annual revenue, Fire Services revenue and adjusted EBITDA.

For all performance-based awards, the performance targets have been set for each of the Minimum, Target, and Maximum levels. The actual performance amount achieved is determined by the Compensation Committee and may be adjusted for items determined to be unusual in nature or infrequent in occurrence, at the discretion of the Compensation Committee.

The fair value for performance and service-based awards is equal to the closing price of our stock price on the grant date. The compensation cost is based on the fair value at the grant date, is recognized over the requisite service period using the straight-line method and is periodically adjusted for the probable number of shares to be awarded. As of April 30, 2026, unrecognized stock-based compensation expense totaled $3.9 million pursuant to the 2017 Plan based on outstanding awards under the Plan. This expense is expected to be recognized over approximately 2.3 years.

***Stock Repurchase Program***

On April 7, 2022, the Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $5.0 million of its outstanding common stock, which became effective upon the completion of a prior share repurchase program. On December 1, 2022, the Board of Directors authorized an increase in the Company's stock repurchase program, under which the Company may repurchase up to an additional $5.0 million of its outstanding common stock.

No shares were repurchased during Q1 FY27, leaving $5.0 million remaining under the share repurchase program at April 30, 2026. The share repurchase program has no expiration date but may be terminated by the Board of Directors at any time.

**9.** **Income Taxes**

The Company's provision for income taxes for the three months ended April 30, 2026 and 2025 is based on the estimated annual effective tax rate, in addition to discrete items.

The Company's effective tax rate for the three months ended April 30, 2026 was 78.5% which differs from the U.S. federal statutory rate of 21% primarily as a result of a valuation allowance against the Company's U.S. operations. The Company's effective tax rate for the three months ended April 30, 2025 was 23.4% which differs from the U.S. federal statutory rate of 21%, primarily due to rate differentials in foreign tax jurisdictions.

The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. The valuation allowance was $19.7 million and $18.3 million as of April 30, 2026 and January 31, 2026, respectively. The increase in the valuation allowance for the three months ended April 30, 2026, was treated as a component of the estimated annual effective tax rate.

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The Company continually reviews the adequacy of its valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be realized in accordance with ASC 740, Income Taxes. Due to the declines in revenue and profitability in prior periods and the weighing of all positive and negative objective evidence considered, the Company has limited ability to rely on subjective factors, including projected future growth, in evaluating whether its deferred tax assets will be realized. As such, the Company previously determined in FY2026 that it was no longer able to conclude that it is more likely than not that its U.S. deferred tax assets will be realized. The amount of the deferred tax assets considered realizable, however, could be adjusted in future periods in the event sufficient evidence is present to support a conclusion that it is more likely than not that all or a portion of its U.S. deferred tax assets will be realized.

With the exception of our UK and China subsidiaries for which we accrue relevant deferred tax impacts related to non-indefinitely reinvested cash, we consider the excess of the amount for financial reporting over the tax basis (including undistributed and previously taxed earnings) of investments in our other foreign subsidiaries as of April 30, 2026 to be indefinitely reinvested in the foreign jurisdictions on the basis of our specific plan for reinvestment and estimates that future U.S. cash generation will be sufficient to meet future U.S. cash needs. Therefore, we have not provided for deferred taxes related to such excess or the relevant portions thereof and disclosed that the determination of any deferred taxes related to this excess is not practicable in those permanently reinvested jurisdictions. We have made no changes to our policy on indefinite reinvestment during the three months ended April 30, 2026.

On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was enacted into law in the U.S. The OBBBA contains various changes to key U.S. federal income tax laws. The Company does not expect a material impact to its overall income tax provision as a result of this newly enacted legislation.

**10.** **Net Income (Loss) Per Share** 

The following table sets forth the computation of basic and diluted net income (loss) per share as follows (in $000s except share and per share amounts):

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>April 30, | Three Months Ended<br>April 30, |
|  | 2026 | 2025 |
| Numerator: |  |  |
| Net income (loss) | $369 | $(3913) |
| Denominator: |  |  |
| Denominator for basic net income (loss) per share<br> (weighted-average shares which exclude 1,358,208<br> treasury shares for the periods ended April 30, 2026<br> and 2025) | 9862119 | 9498604 |
| Effect of dilutive securities from restricted stock plan | 431784 |  |
| Denominator for diluted net income (loss) per share<br> (adjusted weighted average shares) | 10293903 | 9498604 |
| Basic net income (loss) per share | $0.04 | $(0.41) |
| Diluted net income (loss) per share | $0.04 | $(0.41) |

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For the three months ended April 30, 2025, 0.3 million shares of unvested restricted stock awards were excluded from the calculation of diluted earnings per share due to their anti-dilutive effect.

**11.** **Contingencies**

Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company's management and legal counsel assess such contingent liabilities, which inherently involve an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company's legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been or is probable of being incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.

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In June 2025, the Company initiated legal action against the landlord seeking rescission of the lease due to unremediated structural defects on the newly constructed facility in Monterrey, Mexico that prevented the Company from effectively utilizing the facility for its intended purpose. In addition to rescission of the lease, the Company seeks the return of all amounts paid by the Company under the lease from its execution through the date of resolution. Following two dismissals of the case for jurisdictional reasons, on February 3, 2026, the case was filed as a Commercial Oral Proceeding (Juicio Oral Mercantil), and on March 20, 2026, the Commercial Oral Proceedings Court of the First Judicial District of the State (Juzgado de Oralidad Mercantil del Primer Distrito Judicial del Estado), located in Monterrey, Nuevo León, Mexico, admitted the claim and ordered service of process on the landlord. During FY2026, the Company assessed the carrying value of the right-of-use asset associated with the lease and concluded the asset was impaired given that (i) the space is not usable for its intended purpose; (ii) no economic benefits are expected to be derived during the appeal process; and (iii) the likelihood of recovery of the carrying value of the right-of-use asset is remote. The outcome of the legal proceedings remains uncertain at this time.

The Company is involved in various claims, actions, and legal proceedings arising in the ordinary course of business, including multiple lawsuits involving allegations that plaintiffs were exposed to Per- and polyfluoroalkyl substances ("PFAS") during their careers as firefighters. Plaintiffs allege personal injuries from exposure to PFAS contained in aqueous film forming foam ("AFFF") and firefighter turnout gear. The vast majority of these cases are pending in the AFFF multi-district litigation consolidated in the United States District Court of South Carolina, Charleston Division. The Company is also named alongside several defendants in a class action regarding firefighter turnout gear pending in the United States District Court of Connecticut, styled as Uniformed Professional Fire Fighters Association of Connecticut et al. v. 3M Company et al., Case No. 3:24-CV-01101. The case seeks certification of a fire fighter class, a nationwide purchaser class, and a Connecticut purchaser subclass. The Company's exposure in these matters to losses, if any, is not reasonably estimable at this time.

On February 23, 2026, a putative class action was filed against Lakeland Industries, Inc. and a certain current and former senior officers in the United States District Court for the Southern District of New York, purportedly on behalf of a class of the Company's investors who purchased or otherwise acquired our publicly traded securities between December 1, 2023 and December 9, 2025. Lead counsel was appointed on May 15, 2026. The Company's deadline to respond to the forthcoming amended complaint is August 28, 2026. The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder in connection with various public statements made by the Company. The Company intends to vigorously defend against these actions, which the Company believes to be without merit. The potential impact of these actions, which seek unspecified damages, attorneys' fees and expenses, is uncertain.

Lakeland Industries, Inc. is a nominal defendant in a derivative action filed on May 4, 2026 in the Southern District of New York by ES Trust against Lakeland's officers and directors, captioned ES Trust vs. James Jenkins, et al. The case involves similar allegations to the securities class action matter and alleges that the Company's officers and directors breach their fiduciary duties in permitting the allegedly wrongful conduct to occur. The class action and derivative cases have been identified as related and assigned to the same judge. The derivative case is in its early stage, and a potential loss cannot yet be estimated.

<u>General litigation contingencies</u>

The Company is involved in various litigation proceedings arising during the normal course of business which, in the opinion of the management of the Company, will not have a material effect on the Company's financial position, results of operations or cash flows; however, there can be no assurance as to the ultimate outcome of these matters. As of April 30, 2026 and January 31, 2026, to the best of the Company's knowledge, there were no significant outstanding claims or litigation.

**12.** **Segment Reporting**

Domestic and international sales are as follows in millions of dollars:

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>April 30, | Three Months Ended<br>April 30, |
| (in millions) | 2026 | 2025 |
| Domestic | $20.1 | $20.7 |
| International | 27.3 | 26.0 |
| Total Sales | $47.4 | $46.7 |

---

The Company is organized into seven geographical operating segments that are based on management responsibilities: U.S. Operations (including the corporate office), Europe, Mexico, Asia, Canada, Latin America and Other Foreign.

Gross profit and operating income (loss) are the measures used by the chief operating decision maker, identified as our President and Chief Executive Officer, to evaluate segment performance and identify opportunities when allocating resources.

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The accounting principles applied at the reportable segment level in determining the segment measure of profit or loss are the same as those applied at the consolidated financial statement level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation.

Our U.S. operations include a facility in Alabama (primarily the distribution to customers of the bulk of our products and the light manufacturing of our chemical, wovens, reflective, and fire products) and facilities in Arizona, California and Iowa (fire services). The Company also maintains one manufacturing facility in China (primarily disposable and chemical suit production), a manufacturing facility in Mexico (primarily disposable, reflective, fire and chemical suit production), a manufacturing facility in Vietnam (primarily disposable production), a manufacturing facility in Argentina (primarily wovens production), a manufacturing facility in Romania (boots), a manufacturing facility in New Zealand (helmets) and two small manufacturing facilities in India (primarily disposable and wovens production). Our China and Vietnam facilities produce a significant portion of the Company's products. We evaluate the performance of these entities based on gross profit, which is defined as net sales less cost of goods sold, and operating income (loss), which is defined as income before income taxes, interest expense and other income and expenses. We have sales forces in the U.S., Canada, Mexico, Europe, Latin America, India, Russia, Kazakhstan, Australia, New Zealand and China, which sell and distribute products shipped from the U.S., Mexico, China, Vietnam or India.

The table below represents information about reportable segments for the three month periods noted therein (amounts may not foot due to rounding):

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>April 30, | Three Months Ended<br>April 30, |
| (in millions of dollars) | 2026 | 2025 |
| Net Sales: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $22.3 | $22.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign | 5.3 | 4.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Europe | 12.1 | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mexico | 2.5 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asia | 11.0 | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | 2.1 | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Latin America | 4.9 | 4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less intersegment sales | (12.8) | (13.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated sales | $47.4 | $46.7 |
| External Sales: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $20.1 | $20.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign | 3.5 | 3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Europe | 11.4 | 11.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mexico | 1.9 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asia | 3.7 | 3.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | 2.1 | 2.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Latin America | 4.7 | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated external sales | $47.4 | $46.7 |
| Intersegment Sales: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $2.3 | $1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign | 1.7 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Europe | 0.7 | 0.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mexico | 0.5 | 8.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asia | 7.4 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada |  | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Latin America | 0.2 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated intersegment sales | $12.8 | $13.1 |

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The table below represents information about reportable segments for the three month periods noted therein (amounts may not foot due to rounding):

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>April 30, | Three Months Ended<br>April 30, |
| (in millions of dollars) | 2026 | 2025 |
| Cost of Goods Sold: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $16.1 | $15.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign | 3.5 | 3.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Europe | 9.0 | 8.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mexico | 2.4 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asia | 9.2 | 9.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | 1.3 | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Latin America | 3.5 | 2.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less intersegment cost of goods sold | (12.5) | (12.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated cost of goods sold | 32.5 | $31.1 |
| Gross Profit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $6.2 | $7.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign | 1.8 | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Europe | 3.1 | 3.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mexico | 0.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asia | 1.8 | 2.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | 0.8 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Latin America | 1.4 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less intersegment loss | (0.3) | (0.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated gross profit | 14.9 | $15.6 |
| Operating Expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $10.7 | $10.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign | 1.5 | 1.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Europe | 3.3 | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mexico | 0.5 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asia | 1.2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | 0.7 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Latin America | 1.5 | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less intersegment operating expenses | (0.3) | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated operating expenses | $19.1 | $20.3 |
| Gain on sale of certain assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $(6.5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated gain on sale of certain assets | $(6.5) | $— |
| Operating Income (Loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $2.0 | $(3.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign | 0.3 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Europe | (0.2) | (0.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Mexico | (0.4) | (0.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Asia | 0.6 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | 0.1 | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Latin America | (0.1) | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Less intersegment loss (income) |  | (0.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating income (loss) | $2.3 | $(4.6) |

---

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The table below represents information about reported segments as of the dates noted therein (amounts may not foot due to rounding):

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| | | |
|:---|:---|:---|
|  | As of April 30, | As of January 31, |
| (in millions of dollars) | 2026 | 2026 |
| Total Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $167.8 | $170.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Europe | 57.3 | 61.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mexico | 11.7 | 11.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asia | 42.8 | 48.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | 6.9 | 6.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Latin America | 24.5 | 23.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign | 21.7 | 19.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less intersegment | (120.4) | (132.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated assets | $212.3 | $209.9 |
| Total Assets Less Intersegment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $88.6 | $90.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Europe | 48.5 | 50.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mexico | 7.8 | 8.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asia | 24.2 | 20.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canada | 3.0 | 2.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Latin America | 20.2 | 19.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign | 20.0 | 17.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated assets | $212.3 | $209.9 |
| Total Goodwill and Intangible Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Operations | $25.8 | $25.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Europe | 19.4 | 19.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other foreign | 0.9 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated goodwill and intangible assets | $46.1 | $47.0 |

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The table below presents external sales by product line:

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| | | |
|:---|:---|:---|
|  | Three Months Ended<br>April 30, | Three Months Ended<br>April 30, |
| (in millions of dollars) | 2026 | 2025 |
| External Sales by product lines: |  |  |
| Disposables | $13.6 | $13.1 |
| Chemical | 5.5 | 6.1 |
| Fire Service | 23.4 | 21.0 |
| Gloves | 0.3 | 0.3 |
| High Visibility<sup>(1)</sup> | 0.7 | 1.0 |
| High Performance Wear<sup>(1)</sup> | 0.9 | 1.6 |
| Wovens | 3.0 | 3.6 |
| Consolidated external sales | $47.4 | $46.7 |

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<sup>(1)</sup> The Company sold inventory and intellectual property associated with the high performance FR/AR apparel line and high visibility clothing line on March 27, 2026.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

**Forward-Looking Statements** 

The following discussion and analysis should be read in conjunction with the historical financial statements and other financial information included elsewhere in this quarterly report on Form 10-Q. This Form 10-Q may contain certain forward-looking statements. When used in this Form 10-Q or in any other presentation, statements which are not historical in nature, including the words "anticipate," "estimate," "should," "expect," "believe," "intend," "project," "plan," "seek," "will," "may," "might," "would," "could" and similar expressions, are intended to identify forward-looking statements. They also include statements containing a projection of sales, earnings or losses, capital expenditures, dividends, capital structure or other financial terms.

The forward-looking statements in this Form 10-Q are based upon our management's beliefs, assumptions and expectations of our future operations and economic performance, taking into account the information currently available to us. These statements are not statements of fact. Forward-looking statements involve risks and uncertainties, some of which are not currently known to us that may cause our actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. Some of the important factors that could cause our actual results, performance or financial condition to differ materially from expectations are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we are subject to risk as a result of our international manufacturing operations and are subject to the risk of doing business in foreign countries, particularly in China, Vietnam and India, including risks relating to the impacts of tariff policies and other trade maneuvers, which could affect our ability to manufacture or sell our products, obtain products from foreign suppliers or control the costs of our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a terrorist attack, other geopolitical crisis, or widespread outbreak of an illness or other health issue could negatively impact our domestic and/or international operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our results of operations could be negatively affected by potential fluctuations in foreign currency exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our results of operations may vary widely from quarter to quarter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•disruption in our supply chain, manufacturing or distribution operations could adversely affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•climate change and other sustainability matters may adversely affect our business and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•because we do not have long-term commitments from many of our customers, we must estimate customer demand, and errors in our estimates could negatively impact our inventory levels and net sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we face competition from other companies, a number of which have substantially greater resources than we do;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our operations are substantially dependent upon key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•technological change could negatively affect sales of our products and our performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•cybersecurity incidents could disrupt business operations, result in the loss of critical and confidential information and adversely impact our reputation and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•data privacy and security laws relating to the handling of personal information are evolving across the world and may be drafted, interpreted, or applied in a manner that results in increased costs, legal claims, fines against us, or reputational damage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our success depends in part on our proprietary technology, and if we fail to obtain or enforce our intellectual property rights successfully, our competitive position may be harmed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to successfully identify, consummate and integrate current and future acquisitions and strategic investments or to realize anticipated cost savings and other benefits could adversely affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we are implementing a new enterprise resource planning system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we have identified a material weakness in our internal control over financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•covenants in our credit facilities may restrict our financial and operating flexibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may need additional funds, and if we are unable to obtain these funds, we may not be able to expand or operate our business as planned;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions or transactional counterparties, could adversely affect our business, financial condition or results of operations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we are subject to certain U.S. and foreign anti-corruption laws and other laws and regulations as a result of our international operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we are exposed to U.S. and foreign tax risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may be subject to product liability claims, and insurance coverage could be inadequate or unavailable to cover these claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•environmental laws and regulations may subject us to significant liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provisions in our restated certificate of incorporation and by-laws and Delaware law could make a merger, tender offer or proxy contest difficult; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the other factors referenced in this Form 10-Q, including, without limitation, in the sections entitled "Part I – Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations" and the factors described under "Risk Factors" disclosed in our fiscal 2026 Form 10-K.

We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements that are based on current expectations. Furthermore, forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements after the date of this Form 10-Q, whether as a result of new information, future events or otherwise, except as may be required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this Form 10-Q might not occur. We qualify any and all of our forward-looking statements entirely by these cautionary factors.

**Business Overview**

We manufacture and sell a comprehensive line of industrial protective clothing and accessories for the industrial and public protective clothing market. In addition, we provide decontamination, repair and rental services that complement our fire services portfolio. Our products are sold globally by our in-house sales teams, our customer service group, and to a strategic and selective global network of authorized distribution partners. Our authorized distributors supply end users across various industries, including integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical and high-tech electronics manufacturers, as well as scientific, medical laboratories and the utilities industry. We also supply federal, state and local governmental agencies and departments, including 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 U.S., sales are made into more than 50 foreign countries, the majority of which are into China, the European Economic Community ("EEC"), Canada, Chile, Argentina, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, New Zealand, Australia and Hong Kong.

The Company's strong market position across its focus product categories and markets is supported by continued and increasing investment in its global footprint, particularly owning and operating its own manufacturing facilities, acquiring complementary companies or products that expand and enhance product offerings and/or geographic customer territories and investing in sales and marketing resources in countries around the world. We believe that ownership of manufacturing is the cornerstone of building a resilient supply chain and providing high-quality products to our customers. Having ten manufacturing locations in eight countries on five continents, and sourcing core raw materials from multiple suppliers in various countries affords Lakeland superior manufacturing capabilities and supply chain resilience compared to our competitors who use contractors. Additionally, our focus on providing customers with best-in-class service includes the strategic location of our sales team members.

Lakeland is committed to protecting the world's workers, first responders, and communities while creating value for its shareholders. Key elements of our corporate strategy include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Creating a high-performance culture driven by our corporate values,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Investing resources in high-growth geographies and product categories,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Building a premier global firefighter safety brand through product and marketing enhancements,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Driving profitable growth in high-end chemical and limited-use/disposable protective clothing through product development, strategic pricing initiatives, channel diversification, and operations optimization, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Acquiring companies that improve Lakeland's competitive advantage in focus markets.

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On September 15, 2025, the Company acquired 100% of U.S.-based Arizona PPE Recon, Inc. ("Arizona PPE") for cash consideration of approximately $4.1 million, subject to post-closing adjustments and customary holdback provisions. Founded in 2016, Arizona PPE is the leading UL-certified independent services provider ("ISP") for performing advanced decontamination, inspection and repairs on firefighting garments for the Arizona market, as well as providing educational and training classes to fire departments and personnel to help them implement and adhere to NFPA 1851 guidelines.

On September 15, 2025, the Company acquired 100% of U.S.-based California PPE Recon, Inc. ("California PPE") for a combination of approximately $2.4 million in cash consideration and 227,728 unregistered shares of the Company's common stock with an estimated fair value of $3.3 million at the date of acquisition, subject to post-closing adjustments and customary holdback provisions. Founded in 2022, California PPE is a leading and rapidly expanding UL-certified ISP in the California firefighting services market, one of the largest fire markets in the U.S. It also provides advanced decontamination, repair, and inspection of firefighting personal protective equipment, along with rental services and sales of cleaning detergents, extractors, and dryers.

We sold our high performance FR/AR apparel line and our high visibility clothing line on March 27, 2026.

Our net sales attributable to customers outside the U.S. were $27.3 million and $26.0 million for the three months ended April 30, 2026 and 2025, respectively.

**<u>Key Trends Affecting Our Operations</u>**

***Trade Policies and Regulations***

Since early 2025, the executive branch of the U.S. government has pursued a policy of imposing tariffs on imports from many foreign countries, including countries where the Company has manufacturing facilities, such as China, India, and Vietnam, among others. In response, China and other countries announced retaliatory tariffs against certain U.S. imports. These tariffs have been, and may continue to be, announced, amended, paused, reinstated and rescinded with little or no advance notice. On February 20, 2026, the U.S. Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA"), and the U.S. Court of International Trade ("CIT") subsequently ordered U.S. Customs and Border Protection to process refunds of tariffs paid under the IEEPA. While we have submitted claims for refunds related to certain eligible tariffs paid, the ultimate availability, timing, and amount of any potential refunds of such tariffs remain uncertain and are subject to further legal, regulatory, and administrative developments. No tariff refund receivables have been recorded in the accompanying condensed consolidated financial statements as of April 30, 2026. However, after April 30, 2026, we began receiving refunds, but the amount received to date is not material.

After the Supreme Court's ruling on the IEEPA tariffs, the Trump Administration immediately imposed new global tariffs pursuant to Section 122 of the Trade Act of 1974, which allows for tariffs of up to 15% for a period of up to 150 days, and indicated its intention to consider other legal options for imposing tariffs. However, in May 2026, the CIT held that the tariffs imposed under Section 122 were unlawful. This ruling has been appealed and is subject to ongoing litigation.

The extent and duration of increased tariffs and the resulting impact on general economic conditions and on our business are uncertain. As the situation remains fluid due to the rapidly changing global trade environment, we continue to evaluate the potential implications of these actions on our business, and we are uncertain about the ultimate impact that these policies will have on our business. Thus far, however, they have increased the cost of importing certain products, which has affected our operating results and margins. In prior years, the Company has been able to pass along a portion of costs resulting from tariffs to its customers, but there is no guarantee that we will be able to successfully do so in the future. Therefore, we expect that, as long as such tariffs are in effect, they will continue to affect our operating results and margins, and as a result, our historical and current gross profit margins may not be indicative of our gross profit margins for future periods. We will mitigate these factors to the best of our abilities through supply chain and manufacturing site initiatives. However, where annualized cost increases cannot be eliminated, strategic market price adjustments will be implemented.

***Russia-Ukraine Conflict***

We are continually monitoring the potential financial impact of the Russian invasion of Ukraine on our operations. For the three months ended April 30, 2026, sales in Russia accounted for approximately 2.3% of our consolidated sales, and sales into Ukraine were not significant. We do not have any capital assets in Russia.

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***Conflict in the Middle East***

We are continually monitoring the potential financial impact of the U.S. and Israel coordinated military operation against Iran on our operations. Our sales in the Middle East were not significant during the three months ended April 30, 2026. However, ongoing supply chain disruptions or increased freight costs resulting from the reduction in shipping volume through the Strait of Hormuz could have material adverse effects on our business.

**Results of Operations**

**Three Months ended April 30, 2026, Compared to the Three Months Ended April 30, 2025**

*Net Sales.* Net sales were $47.4 million for the three months ended April 30, 2026, an increase of $0.7 million or 1.4%, compared to $46.7 million for the three months ended April 30, 2025. Sales of our Fire Service product line increased $2.4 million primarily due to $1.5 million in sales from Arizona PPE and California PPE, as well as continued organic growth in our portfolio of fire turnout products. Sales increased for Disposable products by $0.5 million and sales declined for Woven products by $0.6 million, Chemical products by $0.6 million, High Performance Wear by $0.7 million and High Visibility products by $0.3 million.

On March 27, 2026, the Company completed the sale of certain assets associated with its High Performance Wear and High Visibility product lines.

*Gross Profit.* Gross profit for the three months ended April 30, 2026 was $14.9 million, a decrease of $0.8 million, or 4.9%, compared to $15.6 million for the three months ended April 30, 2025. Gross profit as a percentage of net sales decreased to 31.4% for the three months ended April 30, 2026, from 33.5% for the three months ended April 30, 2025, primarily due to increased labor, rent and certification costs partially offset by lower production and material costs.

*Operating Expense*s. Operating expenses decreased by $1.2 million, or 6.0%, from $20.3 million for the three months ended April 30, 2025 to $19.1 million for the three months ended April 30, 2026. The decrease was primarily due to lower freight costs, incentive compensation and professional fees, partially offset by an increase in stock based compensation and amortization expense. Operating expenses as a percentage of net sales were 40.3% for the three months ended April 30, 2026, down from 43.4% for the three months ended April 30, 2025, primarily due to the factors noted above.

*Gain on Sale of Certain Assets.* On March 27, 2026, the Company completed the sale of High Performance and High Visibility inventory and intellectual property to an unrelated third party for $14.0 million yielding $13.2 million in cash proceeds after inventory adjustments. The Company, for a six-month period, will manufacture and ship such inventory on behalf of the buyer; accordingly, any gain associated with such inventory and the related profit has been deferred and will be recognized over the six-month contract period.

*Operating Income (Loss)*. Operating income was $2.3 million for the three months ended April 30, 2026, compared to an operating loss of $(4.6) million for the three months ended April 30, 2025, due to the impacts detailed above. Operating margins were 4.8% for the three months ended April 30, 2026, as compared to (9.9)% for the three months ended April 30, 2025.

*Income Tax Expense (Benefit)*. Income tax expense consists of federal, state and foreign income taxes. Income tax expense was $1.3 million for the three months ended April 30, 2026, compared to a benefit of $1.2 million for the three months ended April 30, 2025. The Company's effective tax rate for the first quarter of FY26 was 78.5% which differs from the U.S. federal statutory rate of 21% primarily as a result of a valuation allowance against the Company's U.S. operations.

*Net Income (Loss).* Net income was $0.4 million for the three months ended April 30, 2026, compared to a net loss of $(3.9) million for the three months ended April 30, 2025.

**Liquidity and Capital Resources**

At April 30, 2026, cash and cash equivalents were approximately $17.4 million, and working capital was approximately $92.8 million. Cash and cash equivalents increased $4.9 million, and working capital decreased $3.4 million from January 31, 2026 due to the balance sheet fluctuations described below.

Of the Company's total cash and cash equivalents of $17.4 million as of April 30, 2026, cash held in Latin America of $1.0 million, cash held in the UK of $1.3 million, cash held in Russia and Kazakhstan of $1.8 million, cash held in the EEC of $3.9 million, cash held in India of $0.6 million, cash held in Vietnam of $0.2 million, and cash held in Hong Kong of $0.4 million would not be subject to additional U.S. tax in the event such cash was repatriated due to the change in the U.S. tax law as a result of the December 22, 2017 enactment of the 2017 Tax Cuts and Jobs Act (the "Tax Act"). When the Company repatriates cash from China, of the $3.0 million balance at April 30, 2026, an additional 10% withholding tax may be incurred in that country. The Company expects to repatriate cash from China during FY 27 and in anticipation of doing so, has accrued withholding tax expense of $0.3 million as of April 30, 2026.

------

Cash provided by operations was $5.8 million. Net income of $0.4 million was adjusted for non-cash charges of $4.5 million, primarily related to the gain on sale of inventory and intellectual property associated with our high performance and high visibility product lines and an increase in operating assets and liabilities of $9.6 million primarily related to changes in deferred revenue, inventory and other assets. Net cash provided by investing activities was $10.0 million, primarily due to the proceeds from the sale of the high-visibility and high-performance workwear styles partially offset by purchases of capital equipment. Net cash used in financing activities was $5.2 million due to $14.0 million borrowed under our credit facility to fund working capital increases offset by the repayment of debt facilities of $19.1 million and $0.2 million in shares returned to pay income taxes on shares vested under our equity compensation program.

We believe our current cash, cash equivalents, borrowing capacity under our Loan Agreement, and the cash to be generated from expected product sales will be sufficient to meet our projected operating and investing requirements (including planned capital expenditures) for at least the next twelve months. However, our liquidity assumptions may prove to be incorrect, and we may need to utilize our available financial resources sooner than we currently expect.

On June 25, 2020, the Company entered into a Loan Agreement (the "Original Loan Agreement") with Bank of America, N.A. ("Lender"), as amended by Amendment No. 1 to the Loan Agreement, dated June 18, 2021 ("Amendment No. 1"), Amendment No. 2 to the Loan Agreement, dated March 3, 2023 ("Amendment No. 2"), Amendment No. 3 to the Loan Agreement, dated November 30, 2023 ("Amendment No. 3"), Amendment No. 4 to the Loan Agreement, dated March 28, 2024 ("Amendment No. 4"), Amendment No. 5 to the Loan Agreement, dated December 12, 2024 ("Amendment No. 5") and Amendment No. 6 to the Loan Agreement, dated July 7, 2025 ("Amendment No. 6" and, collectively with Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, and Amendment No. 5, the "Loan Agreement Amendments"; and the Original Loan Agreement, as amended by the Loan Agreement Amendments, the "Amended Loan Agreement").

The Amended Loan Agreement provides the Company with a secured revolving credit facility of up to $40.0 million of borrowings (giving effect to the reduction of such limit following the application of the net proceeds from the Company's January 2025 equity issuance). The revolving credit facility includes a $10.0 million letter of credit sub-facility. The credit facility matures on December 12, 2029.

On April 13, 2026, the Company and the Lender entered into a limited waiver (the "Limited Waiver"), pursuant to which the Lender waived the Company's non-compliance as of January 31, 2026 with respect to two financial covenants under the Amended Loan Agreement. The $40.0 million aggregate commitment amount of the Amended Loan Agreement, maturity date of December 12, 2029, and applicable interest rate of the Amended Loan Agreement remained unchanged. The Company was in compliance with all of its debt covenants as of April 30, 2026.

Borrowings under the revolving credit facility bear interest at a rate per annum equal to the sum of (i) the greater of the daily Secured Overnight Financing Rate ("SOFR") or an index floor of 1% plus (ii) the Applicable Rate (as defined in the Amended Loan Agreement). The Applicable Rate is based on a funded debt-to-EBITDA ratio (discussed below) and includes four different levels, constituting a SOFR margin range of 1.25% to 2.00%. All outstanding principal and unpaid accrued interest under the revolving credit facility are due and payable on the maturity date. On a one-time basis, and subject to there not existing an event of default, the Company may elect to convert up to $5.0 million of the then outstanding principal of the revolving credit facility to a term loan facility with an assumed amortization of 15 years and the same interest rate and maturity date as the revolving credit facility. The Amended Loan Agreement provides for a fee on any difference between the line of credit commitment and the amount of credit it actually uses, determined by the daily amount of credit outstanding during the specified period. Such fee is calculated at the Applicable Rate and is payable quarterly.

The Company made certain representations and warranties to the Lender in the Amended Loan Agreement that are customary for credit arrangements of this type. The Company also agreed to maintain, as of the end of each fiscal quarter a minimum "basic fixed charge coverage ratio" (as defined in the Amended Loan Agreement) of at least 1.20x and a "funded debt to EBITDA ratio" (as defined in the Amended Loan Agreement) not to exceed 3.5x (with step-downs to 3.25x and 3.0x on February 1, 2026 and February 1, 2027, respectively), in each case for the trailing 12-month period ending with the applicable quarterly reporting period. In addition, the Company has agreed to maintain a springing "asset coverage ratio" (as defined in the Amended Loan Agreement) of at least 1.10x, but only to the extent that the maximum funded debt to EBITDA ratio exceeds 3.25x at any reporting period. The Company was in compliance with all of its debt covenants as of April 30, 2026.

------

The Company also agreed to certain negative covenants under the Amended Loan Agreement that are customary for credit arrangements of this type, including restrictions regarding the ability of the Company and/or its subsidiaries to conduct business, grant liens, make certain investments, and incur additional indebtedness, which negative covenants are subject to certain exceptions. Moreover, the Amended Loan Agreement contains restrictions on the Company's ability to enter into mergers and other business combination transactions and to purchase or acquire other businesses or their assets, although the Company may purchase a business or its assets without the consent of the Lender if the aggregate amount of consideration paid for by the Company is less than $26.0 million for any individual acquisition or $36.0 million on a cumulative basis for all such acquisitions or purchases subsequent to the date of Amendment No. 5. The Amended Loan Agreement also authorizes the Company to enter into additional lines of credit or incur liabilities in connection with the acquisitions of foreign subsidiaries in foreign countries where the Lender lacks a physical presence (such amounts not to exceed $10.0 million in the aggregate).

The Amended Loan Agreement contains customary events of default that include, among other things (subject to any applicable cure periods and materiality qualifier), non-payment of principal, interest or fees, defaults under related agreements with the Lender, cross-defaults under agreements for other indebtedness, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments and material adverse change. Upon the occurrence of an event of default, the Lender may terminate all loan commitments, declare all outstanding indebtedness owing under the Amended Loan Agreement and related documents to be immediately due and payable, and may exercise its other rights and remedies provided for under the Amended Loan Agreement.

In connection with the Amended Loan Agreement, the Company entered into with the Lender (i) a security agreement dated June 25, 2020, pursuant to which the Company granted to the Lender a first priority perfected security interest in substantially all of the personal property and the intangibles of the Company, and (ii) a pledge agreement, dated June 25, 2020, pursuant to which the Company granted to the Lender a first priority perfected security interest in the stock of its subsidiaries (limited to 65% of those subsidiaries that are considered "controlled foreign subsidiaries" as set forth in the Internal Revenue Code and regulations).

As of April 30, 2026, the Company had no borrowings outstanding on the letter of credit sub-facility and borrowings of $23.8 million outstanding under the revolving credit facility, and there was $16.2 million of additional available credit under the Loan Agreement. As of January 31, 2026, the Company had no borrowings outstanding on the letter of credit sub-facility and borrowings of $28.5 million outstanding under the revolving credit facility, and there was $11.5 million of additional available credit under the Loan Agreement. The interest rate on outstanding borrowings was 5.74% at April 30, 2026 and 5.76% at January 31, 2026.

*Stock Repurchase Program*. On April 7, 2022, the Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $5.0 million of its outstanding common stock, which became effective upon the completion of a prior share repurchase program. On December 1, 2022, the Board of Directors authorized an increase in the Company's stock repurchase program, under which the Company may repurchase up to an additional $5.0 million of its outstanding common stock.

No shares were repurchased in the three months ended April 30, 2026 leaving $5.0 million remaining under the share repurchase program at April 30, 2026. The share repurchase program has no expiration date but may be terminated by the Board of Directors at any time.

*Capital Expenditures.* Our capital expenditures were $1.4 million for the three months ended April 30, 2026 which primarily relates to replacement equipment for our manufacturing sites and developed technology projects. We expect to fund the capital expenditures from our cash flows from operations. The Company may also expend funds in connection with potential acquisitions.

**Critical Accounting Policies and Estimates**

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. A summary of our significant accounting policies is included in Note 1 to our consolidated financial statements in our fiscal year 2026 Form 10-K. Certain of our accounting policies are considered critical, as these policies are the most important to the depiction of our financial statements and require significant, difficult, or complex judgments, often employing the use of estimates about the effects of matters that are inherently uncertain. Such policies are summarized in the Management's Discussion and Analysis of Financial Condition and Results of Operations section in our 2026 Form 10-K. There have been no significant changes in the application of our critical accounting policies and estimates during the three months ended April 30, 2026.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk** 

A smaller reporting company is not required to provide the information required by this Item, and therefore, no disclosure is required under Item 3 for the Company.

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**Item 4. Controls and Procedures**

***Evaluation of Disclosure Controls and Procedures*** 

Our management, under the supervision and with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), as of April 30, 2026. The term "disclosure controls and procedures" means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our principal executive officer and principal financial officer have concluded that as of April 30, 2026, our disclosure controls and procedures were not effective due to the material weakness in internal control over financial reporting described below.

Notwithstanding the ineffective disclosure controls and procedures as a result of the identified material weakness described below, management has concluded that the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q present fairly, in all material respects, the Company's financial position, results of operations and cash flows in accordance with U.S. GAAP.

Material Weakness in Internal Control over Financial Reporting

As previously disclosed in our 2026 Form 10-K, management identified certain deficiencies in the Company's internal control over financial reporting that aggregated to a material weakness related to the completeness and accuracy of its foreign reporting packages. Specifically, the Company has undergone significant changes in size, complexity and geographic footprint primarily due to multiple acquisitions, and has numerous systems that process financially relevant data. Of these systems, Sage X3 (United States, Canada and the United Kingdom) and Kingdee (China and Hong Kong), were in the Company's scope for testing of information technology general controls ("ITGCs") in support of management's assessment of internal control over financial reporting. The Company's consolidation process is manual and based upon reporting packages submitted by the various locations. For those locations where the financially relevant systems were not in-scope and not subject to the Company's testing of ITGCs, the financial reporting controls, as designed, do not adequately address the completeness and accuracy of the foreign reporting packages. The reporting packages form the basis of multiple controls, including a key management review control designed to detect a material misstatement in the Company's consolidated financial statements as well as other controls. Additionally, the Company did not update the control activities documentation for numerous locations and, in some cases, did not change control processes to reflect changes in operating structure. This contributed to the material weakness disclosed in our 2026 Form 10-K in the Company's internal controls.

Management's Remediation Plan and Status

In response to the material weakness, management has taken, or is in the process of taking, the following actions:

• Implementing an enterprise resource planning ("ERP") system, which is expected to roll out in phases over the next several years.

• Tasked the Audit Committee of the Board of Directors with oversight of the risks associated with the Company's technology strategies, its major technology investments and its operational performance; and

• Migrating substantially all of our operations to a common accounting system and utilizing a common chart of accounts and improved accounting close and revise procedures.

While some of these measures have been completed as of the date of this report, management has not completed and tested all of the planned corrective processes, enhancements, procedures and related evaluation necessary to determine whether the material weakness has been fully remediated. Moreover, the corrective actions and controls need to be in operation for a sufficient period of time for management to conclude that the control environment is operating effectively and has been adequately tested by management. Accordingly, the material weakness has not been fully remediated as of the date of this report. As the Company continues its evaluation and remediation efforts, management may modify the actions described above or identify and take additional measures to address the material weakness. Management will continue to assess the effectiveness of remediation efforts in connection with its ongoing evaluation of internal control over financial reporting.

------

***Changes in Internal Control Over Financial Reporting***

Other than continuing to make progress on the ongoing remediation efforts described above, there were no changes in the Company's internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended April 30, 2026 that materially affected, or are reasonably likely to affect materially, the Company's internal control over financial reporting.

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**PART II. OTHER INFORMATION**

**Item 1. Legal Proceedings**

From time to time, we are subject to a variety of litigation and other legal proceedings and claims incidental to our business. Based upon our experience, current information and applicable law, we do not believe that these proceedings and claims will have a material adverse effect on our results of operations, financial condition or cash flows. However, in the event of unexpected further developments, it is possible that the ultimate resolution of these matters, or other similar matters, if unfavorable, may be materially adverse to our results of operations, financial condition or cash flows. For additional information, please see Note 11 to our consolidated financial statements in this Form 10-Q.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

<u>Issuer Purchases of Equity Securities</u>

On April 7, 2022, the Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $5.0 million of its outstanding common stock (the "Share Repurchase Program"). The Share Repurchase Program became effective upon the completion of a prior Share Repurchase Program. The Share Repurchase Program has no expiration date; however, it may be terminated by the Board of Directors at any time. On December 1, 2022, the Board of Directors authorized an increase in the Share Repurchase Program under which the Company may repurchase up to an additional $5.0 million of its outstanding common stock.

The common shares available for repurchase under the authorizations currently in effect may be purchased from time to time, with consideration given to the market price of the common shares, the nature of other investment opportunities, cash flows from operations, general economic conditions and other relevant considerations. Repurchases may be made on the open market or through privately negotiated transactions.

The following table sets forth purchases made by or on behalf of the Company or any "affiliated purchaser," as defined in Rule 10b-18(a)(3) of the Exchange Act, of shares of the Company's common stock during the first quarter of fiscal 2027:

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| | | | | |
|:---|:---|:---|:---|:---|
| Period | Total Number<br>of Shares<br>Purchased | Average<br>Price Paid<br>per Share | Total Number<br>of Shares<br>Purchased<br>as Part of<br>Publicly<br>Announced<br>Programs | Maximum Dollar<br>Amount<br>of Shares<br>that May Yet<br>Be Purchased<br>Under the<br>Programs <sup>(1)</sup> |
| February 1 – February 28 |  | $— |  | $5030479 |
| March 1 – March 31 |  | $— |  | $5030479 |
| April 1 – April 30 |  | $— |  | $5030479 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total |  | $— |  | $5030479 |

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<sup>(1)</sup> Represents the amount remaining under our share repurchase program as of April 30, 2026.

**Item 5. Other Information**

None.

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**Item 6. Exhibits**

\* Filed herewith

† Management contract or compensatory plan or arrangement

‡ Furnished herewith

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| | |
|:---|:---|
| 3.1 | Restated Certificate of Incorporation of Lakeland Industries, Inc., as amended (incorporated by reference to Exhibit 4.1 of Lakeland Industries, Inc.'s Registration Statement on Form S-8 filed on September 3, 2021) |
| 3.2 | Amended and Restated Bylaws of Lakeland Industries Inc. (incorporated by reference to Exhibit 3.1 of Lakeland Industries, Inc.'s Form 8-K filed April 28, 2017) |
| 10.1\* | [<u>Asset Purchase Agreement, dated March 27, 2026, by and between Lakeland Industries, Inc. and National Safety Apparel, LLC</u>](lake-ex10_1.htm) (Immaterial schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule or exhibit to the U.S. Securities and Exchange Commission upon request.) |
| 10.2\* | [<u>Limited Waiver, dated April 10, 2026, by and between Lakeland Industries, Inc. and Bank of America, N.A.</u>](lake-ex10_2.htm) |
| 31.1\* | [<u>Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15(d)-14(a) under the Securities Exchange Act of 1934</u>](lake-ex31_1.htm) |
| 31.2\* | [<u>Certification of Principal Financial Officer pursuant to Rule 13a-14(a) or 15(d)-14(a) under the Securities Exchange Act of 1934</u>](lake-ex31_2.htm) |
| 32.1‡ | [<u>Certification of Chief Executive Officer as adopted pursuant to 18 U.S.C. Section 1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u>](lake-ex32_1.htm) |
| 32.2‡ | [<u>Certification of Principal Financial Officer as adopted pursuant to 18 U.S.C. Section 1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</u>](lake-ex32_2.htm) |
| 101\* | The following financial statements from the Quarterly Report on Form 10-Q for the quarter ended April 30, 2026, formatted in Inline XBRL: (i) Condensed Consolidated Statements of Operations, (ii) Condensed Consolidated Statements of Comprehensive (Loss) Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Stockholders' Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

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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 thereunto duly authorized.

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| | |
|:---|:---|
|  | **<u>LAKELAND INDUSTRIES, INC.</u>**<br>(Registrant) |
| Date: June 9, 2026  | */s/ James M. Jenkins*  |
|  | James M. Jenkins,<br>Chief Executive Officer, President and Executive Chairman <br>(Principal Executive Officer and Authorized Signatory) |
| Date: June 9, 2026 | */s/ J. Calven Swinea* |
|  | J. Calven Swinea,<br>Chief Financial Officer and Secretary<br>(Principal Financial Officer and Authorized Signatory) |

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## Exhibit 10.1

**Exhibit 10.1**

**ASSET PURCHASE AGREEMENT**

by and between

**LAKELAND INDUSTRIES, INC.<br>as Seller**

and

**NATIONAL SAFETY APPAREL, LLC<br>as Buyer**

dated

**March 27, 2026**

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
| ARTICLE I PURCHASE AND SALE | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 1.01 Purchased Assets.** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 1.02 Excluded Assets.** | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 1.03 Assumed Liabilities.** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 1.04 Purchase Price.** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 1.05 Closing Inventory Adjustment.** | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 1.06 Allocation of Purchase Price.** | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 1.07 Non-Assignable Assets.** | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 1.08 Withholding Taxes.** | 6 |
| ARTICLE II CLOSING | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 2.01 Closing.** | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 2.02 Seller Deliverables.** | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 2.03 Buyer Deliverables.** | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 2.04 Transition Services Agreement and Contract Manufacturing Agreement.** | 8 |
| ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.01 Organization and Authority of Seller.** | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.02 No Conflicts or Consents.** | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.03 Product-Level Financial Information.** | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.04 Absence of Certain Changes, Events and Conditions.** | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.05 Inventory.** | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.06 Title to Tangible Personal Property.** | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.07 Sufficiency of Design and Technical Documentation.** | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.08 Legal Proceedings; Governmental Orders.** | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.09 Compliance with Laws.** | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.10 Taxes.** | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.11 Intellectual Property.** | 11 |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.12 Environmental Matters.** | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.13 International Trade.** | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.14 Related Party Transactions.** | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.15 Brokers.** | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 3.16 No Other Representations and Warranties.** | 13 |
| ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 4.01 Organization and Authority of Buyer.** | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 4.02 No Conflicts; Consents.** | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 4.03 Solvency; Sufficiency of Funds.** | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 4.04 Legal Proceedings.** | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 4.05 Brokers.** | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 4.06 Independent Investigation.** | 14 |
| ARTICLE V COVENANTS | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 5.01 Confidentiality.** | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 5.02 Non-Competition; Non-Solicitation; No Circumvention.** | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 5.03 Public Announcements.** | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 5.04 Bulk Sales Laws.** | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 5.05 Transfer Taxes.** | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 5.06 Further Assurances.** | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 5.07 IMMEX Program and Temporary Imports.** | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 5.08 Transitional License.** | 17 |
| ARTICLE VI INDEMNIFICATION | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 6.01 Survival.** | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 6.02 Indemnification by Seller.** | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 6.03 Indemnification by Buyer.** | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 6.04 Certain Limitations.** | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 6.05 Indemnification Procedures.** | 18 |

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Page ii of iv

**Asset Purchase Agreement**

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 6.06 Tax Treatment of Indemnification Payments.** | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 6.07 Exclusive Remedies.** | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 6.08 Indemnification Escrow Fund.** | 19 |
| ARTICLE VII MISCELLANEOUS | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.01 Expenses.** | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.02 Notices.** | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.03 Interpretation; Headings.** | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.04 Severability.** | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.05 Entire Agreement.** | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.06 Successors and Assigns; Assignment.** | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.07 Amendment and Modification; Waiver.** | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.08 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.** | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.09 Counterparts.** | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.10 Non-Recourse.** | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.11 Disclosure Schedules.** | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Section 7.12 Special Rule for Fraud.** | 22 |

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Page iii of iv

**Asset Purchase Agreement**

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**LIST OF SCHEDULES AND EXHIBITS**

SCHEDULES

**Schedule 1.01** Purchased Assets

**Schedule 1.03** Assumed Liabilities

**Schedule 1.06** Allocation Schedule

**Schedule 5.02(c)** Competing Products Exceptions

EXHIBITS

**Exhibit A** Definitions

**Exhibit B** Transition Services Agreement

**Exhibit C** Contract Manufacturing Agreement

**Exhibit D** Illustrative Closing Inventory Amount

Page iv of iv

**Asset Purchase Agreement**

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**ASSET PURCHASE AGREEMENT**

THIS **ASSET PURCHASE AGREEMENT** (this "**Agreement**") dated as of March 27, 2026, is entered into between Lakeland Industries, Inc., a Delaware corporation ("**Seller**"), and National Safety Apparel, LLC, a Delaware limited liability company ("**Buyer**"). Capitalized terms used in this Agreement have the meanings given to such terms herein, including as set forth on **Exhibit A**.

**WHEREAS**, Seller manufactures and sells a broad portfolio of protective apparel and personal protective equipment products across multiple categories;

**WHEREAS**, Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, only the specific high-visibility and high-performance workwear styles consisting of ANSI-compliant high-visibility apparel and arc-rated ("**AR**") and flame-resistant ("**FR**") technical garments expressly identified on **Schedule 1.01** attached hereto (the "**Scheduled Styles**", together with related assets (as described below) relating to such Scheduled Styles, the "**Business**");

**WHEREAS**, the transactions contemplated by this Agreement do not constitute the sale of a business, business unit, division, operating segment, or going concern, and do not include the transfer of any employees, manufacturing operations, inventory, or supply chain arrangements of Seller, except solely to the extent expressly set forth in this Agreement;

**WHEREAS**, Seller intends to continue operating its broader protective apparel business and to sell other products in its extensive product portfolio, including to customers who may also purchase the Scheduled Styles, subject to the covenants set forth herein; and

**WHEREAS**, Seller and Buyer desire to provide for certain limited transition services pursuant to a separate Transition Services Agreement, substantially in the form attached hereto as **Exhibit B** (the "**Transition Services Agreement**"), and a separate Contract Manufacturing Agreement, substantially in the form attached hereto as **Exhibit C** (the "**Contract Manufacturing Agreement**"), which agreements shall be governed exclusively by each of their respective terms and shall not modify or expand the rights or obligations set forth in this Agreement.

**NOW, THEREFORE**, in consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:

**ARTICLE ITC "ARTICLE I PURCHASE AND SALE" \l 1<br>Purchase and Sale OF ASSETS**

**Section 1.01 TC "Section 1.01 Purchased Assets." \l 2Purchased Assets.**

&nbsp;&nbsp;&nbsp;&nbsp;&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) Subject to the terms of this Agreement, Seller shall sell, assign, transfer, convey, and deliver to Buyer, and Buyer shall purchase from Seller, all of Seller's and its Affiliates' right, title, and interest in and to only those assets identified on **Schedule 1.01** or described in Section 1.01(b) (collectively, the "**Purchased Assets**"). For the avoidance of doubt, all sizes for each of the Scheduled Styles are included in the Purchased Assets. No asset of Seller shall be deemed included in the Purchased Assets unless such asset is identified on **Schedule 1.01** or described in Section 1.01(b).

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Purchased Assets include:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to each Scheduled Style, all designs, technical data, specifications, patterns, grading rules (whether digital or physical), bills of materials, construction specifications, tech packs, pre-production sample approval materials (if any), test data, certification files, and other documentation owned by Seller and used exclusively in connection with the Scheduled Style, together with all trademarks, trade names, copyrights, and other Intellectual Property used exclusively in connection with the Scheduled Styles expressly identified on **Schedule 1.01**;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all inventory of Seller and its Affiliates relating exclusively to the Scheduled Styles, including all raw materials, components, fabrics, trims, patterns, work-in-process, packaging, and finished goods, wherever located, as of the Closing Date (the "**Closing Inventory**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all of Seller's and its Affiliates' rights under warranties, indemnities, and all similar rights against third parties to the extent exclusively related to any Scheduled Style;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all historical certification and compliance documentation in Seller's or one of its Affiliates' possession relating to the Scheduled Styles, solely as records of historical testing and certification; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all goodwill associated exclusively with the Scheduled Styles, including customer relationships, customer recognition, and the benefit of Seller's and its Affiliates' historical sales and marketing activities relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&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) As more fully set forth in Sections 1.04 and 1.05, at Closing, Seller shall deliver to Buyer the Closing Inventory in an aggregate amount equal to the Target Inventory Amount, which shall include an amount of finished goods inventory (the "**Closing Finished Goods Inventory Amount**") sufficient to satisfy no less than ninety (90) days of sales (the "**Inventory Sufficiency Requirement**"), calculated based on the average monthly finished goods sales for the trailing three- (3-) month period ending immediately prior to the Closing Date in the same manner as included within the illustrative example in **Exhibit D**. The Purchase Price will be increased or reduced at Closing by the amount by which the Closing Inventory Amount is greater than or less than the Target Inventory Amount, in accordance with Sections 1.04 and 1.05. If the actual Closing Finished Goods Inventory Amount delivered to Buyer at Closing is less than the Inventory Sufficiency Requirement, then the Purchase Price shall be reduced at Closing on a dollar-for-dollar basis by the value of such deficiency, in accordance with Sections 1.04 and 1.05. For the avoidance of doubt, any Closing Inventory, including any finished goods inventory included in the Closing Inventory, that is determined to be obsolete, damaged, or discontinued will be reserved for in accordance with GAAP, which reserve will be taken into account in such calculation.

**Section 1.02 TC "Section 1.02 Excluded Assets." \l 2Excluded Assets.** Buyer is not acquiring, and Seller is not selling, any assets of Seller other than the Purchased Assets identified on **Schedule 1.01** or described in Section 1.01(b). All assets, properties, rights, contracts, and interests of Seller not so expressly described are retained by Seller (the "**Excluded Assets**"). For the avoidance of doubt, Buyer shall not acquire any accounts receivable or other rights to payment of Seller, whether arising before or after the Closing, and all amounts collected after the Closing with respect to sales or transactions occurring prior to the Closing shall belong exclusively to Seller. For the avoidance of doubt, any assets located within Mexican territory that were imported on a definitive basis, sourced locally in Mexico, or that have exceeded their permanency periods according to the applicable Mexican customs and tax programs are Excluded Assets.

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**Section 1.03 TC "Section 1.03 Assumed Liabilities." \l 2Assumed Liabilities.** 

&nbsp;&nbsp;&nbsp;&nbsp;&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) Except as expressly set forth in this Section 1.03, Buyer does not assume, and shall not be responsible for, any liabilities or obligations of Seller or any of its Affiliates of any kind or nature, whether known or unknown, fixed or contingent, accrued or unaccrued, including without limitation, any liabilities or obligations of Seller related to compliance with Mexican customs and tax programs applicable to the assets located within Mexican territory that are included as Purchased Assets for prior to the Closing Date (all such liabilities retained by Seller, the "**Retained Liabilities**").

&nbsp;&nbsp;&nbsp;&nbsp;&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) Buyer shall assume only those purchase orders expressly identified on **Schedule 1.03** (the "**Assumed Purchase Orders**"), which shall be limited exclusively to (i) purchase orders for unfinished inventory or for raw materials or components not yet received as of the Closing and intended for use in the manufacture of the Scheduled Styles and (ii) open purchase orders from customers for finished goods included in the Scheduled Styles.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Buyer shall not assume any other contracts, purchase orders, commitments, or obligations of Seller, and no contract shall be deemed assigned or assumed unless expressly listed on **Schedule 1.03** (the "**Assumed Liabilities**").

**Section 1.04 TC "Section 1.04 Purchase Price." \l 2Purchase Price.** 

&nbsp;&nbsp;&nbsp;&nbsp;&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 aggregate purchase price for the Purchased Assets shall be $14,000,000.00 (the "**Purchase Price**"), as adjusted in accordance with Section 1.01(c), Section 1.04(b), and Section 1.05, <u>plus</u> the assumption of the Assumed Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&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) At Closing, Buyer shall pay the Purchase Price as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Buyer shall deposit an amount equal to $400,000.00 (the "**Adjustment Escrow Amount**" and such fund, the **Adjustment Escrow Fund**") and an amount equal to $1,000,000.00 (the "**Indemnification Escrow Amount**" and such fund, the "**Indemnification Escrow Fund"**), together with any fees due with respect thereto, with the Escrow Agent, such Adjustment Escrow Amount and Indemnification Escrow Amount to be held or disbursed in accordance with the terms of the Escrow Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Buyer shall pay to Seller an amount equal to the Purchase Price, (A) <u>less</u> the aggregate of Adjustment Escrow Amount and the Indemnification Escrow Amount, (B) <u>less</u> the difference, if any, between the Inventory Sufficiency Requirement and the Estimated Closing Finished Goods Inventory Amount, (C) <u>less</u> the amount (if any) by which Estimated Closing Inventory Amount is less than the Target Inventory Amount, (D) <u>plus</u> the amount (if any) by which the Estimated Closing Inventory Amount exceeds the Target Inventory Amount, by wire transfer of immediately available funds in accordance with the wire transfer instructions provided by Seller to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Not less than three (3) Business Days prior to the Closing Date, Seller shall deliver to Buyer: (i) a written statement (the "**Estimated Closing Inventory Amount**") setting forth Seller's good faith estimate of the Closing Inventory Amount, which includes Seller's good faith estimate of the Closing Finished Goods Inventory Amount (the "**Estimated Closing Finished Goods Inventory Amount**"); (ii) a funds flow statement setting forth the Persons to be paid at Closing and wire transfer instructions for the account of each such Person; and (iii) customary payoff letters (the "**Payoff Letters**") and invoices or other documentation from each Person to

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whom Seller or any Owner owes Indebtedness or Transaction Expenses, in each case in a form reasonably satisfactory to Buyer.

**Section 1.05 TC "Section 1.05 Closing Inventory Adjustment." \l 2Closing Inventory Adjustment.** 

&nbsp;&nbsp;&nbsp;&nbsp;&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) Within 120 days after the Closing Date, Buyer may deliver to Seller a written statement (the "**Closing Inventory Statement**") setting forth its calculation of the Closing Inventory Amount at Closing (without giving effect to the Transactions), which includes Buyer's calculation of the Closing Finished Goods Inventory Amount, in each case, prepared in accordance with GAAP, except that the calculation of inventory excludes the value of freight and is valued using the standard rates in effect as of January 2026 or prior. For the avoidance of doubt, all Mexico-designated inventory at Closing is not included in the calculation of the Closing Inventory Amount or Closing Finished Goods Inventory Amount. Following receipt of the Closing Inventory Statement, Seller shall have thirty (30) days to review Buyer's calculation of the Closing Inventory Amount and Closing Finished Goods Inventory Amount set forth on the Closing Inventory Statement. At or before the end of the thirty- (30-) day review period, Seller shall either (i) accept the Closing Inventory Statement in its entirety, or (ii) deliver to Buyer a written notice (a "**Dispute Notice**") setting forth a reasonably detailed explanation of those items in the Closing Inventory Statement that Seller disputes, including Seller's determination of each disputed amount (each, an "**Item of Dispute**"). If Seller does not deliver a Dispute Notice to Buyer within the thirty- (30-) day review period, Seller shall be deemed to have accepted the Closing Inventory Statement in its entirety and all calculations therein. If Seller timely delivers a Dispute Notice in which some, but not all, of the items in the Closing Inventory Statement are properly disputed, Seller shall be deemed to have accepted all of the items not disputed in its Dispute Notice. Buyer and Seller shall reasonably cooperate with each other and their respective representatives in connection with review of the Closing Inventory and Closing Inventory Statement, including by providing the other Party and their respective Representatives with reasonable access during business hours to materials used in, or reasonably requested by such Person, in the preparation of the Estimated Closing Inventory Amount, Estimated Closing Finished Goods Inventory Amount, and the Closing Inventory Statement. If Seller delivers a Dispute Notice to Buyer within the thirty- (30-) day period, then Seller and Buyer will use commercially reasonable efforts to resolve their differences concerning the Items of Dispute, and if any Item of Dispute is so resolved, the Closing Inventory Statement will be modified as necessary to reflect such resolution. If all Items of Dispute are so resolved, the Closing Inventory Statement (as so modified) will be conclusive and binding on Buyer and Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&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) If any Item of Dispute remains unresolved for a period of thirty (30) days after Seller's delivery of a Dispute Notice (the "**Resolution Period**"), then either Buyer or Seller may, within thirty (30) days following the end of the Resolution Period, submit the dispute to a mutually satisfactory independent regional or national public accounting firm (the "**Independent Accounting Firm**"). Then, Buyer and Seller shall each provide their respective calculations of any Items of Dispute in writing to the Independent Accounting Firm and request that the Independent Accounting Firm render, as soon as reasonably practicable, but in no event later than thirty (30) days after its retention, a written determination of such items, which determination (i) will be based solely on whether each such Item of Dispute was prepared in accordance with the terms of this Agreement and (ii) will not be resolved so the final amount determined by the Independent Accounting Firm is more favorable to Seller than the calculation for such Item of Dispute delivered by Seller or more favorable to Buyer than the calculation for such Item of Dispute delivered by Buyer, as to each unresolved Item of Dispute. Buyer and Seller shall cooperate fully with the Independent Accounting Firm so as to enable it to make such determination as quickly and as accurately as practicable. The Independent Accounting Firm's determination as to each Item of

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Dispute submitted to it will be in writing and will be final, conclusive, and binding upon the Parties, absent manifest error, and the Closing Inventory Statement will be modified to the extent necessary to reflect such determination. The fees and expenses of the Independent Accounting Firm will be borne by Buyer, on the one hand, and Seller, on the other hand, in proportion to the portion of the aggregate amount in dispute that is finally resolved by the Independent Accounting Firm in a manner adverse to such party. For example, if Buyer claims the appropriate adjustments are $1,100 less than the amount determined by Seller, and Seller contests only $500 of the amount claimed by Buyer (thereby agreeing Buyer is owed $600), and if the Independent Accounting Firm ultimately resolves the dispute by awarding Buyer $300 of the $500 contested, then the costs and expenses of the Independent Accounting Firm will be allocated 60% (i.e., 300/500) to Seller and 40% (i.e., 200/500) to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Closing Inventory Statement will be deemed final for the purposes of this Section 1.05 upon the earliest of (i) the failure of Seller to provide Buyer with a Dispute Notice within thirty (30) days of Buyer's delivery of the Closing Inventory Statement, (ii) the resolution of all Items of Dispute pursuant to Section 1.05(a) by Buyer and Seller, or (iii) the resolution of all Items of Dispute pursuant to Section 1.05(b) by the Independent Accounting Firm. Upon the final determination of the Closing Inventory Amount as set forth in this Section 1.05, Buyer shall adjust, if applicable, the Closing Inventory Statement accordingly, such adjusted Closing Inventory Statement will be deemed final and binding upon the parties hereto (the "**Final Closing Inventory Statement**"), and Buyer will deliver such Final Closing Inventory Statement to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Upon delivery of the Final Closing Inventory Statement pursuant to Section 1.05(c):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Closing Inventory Amount as reflected on the Final Closing Inventory Statement is equal to the Estimated Closing Inventory Amount, then Buyer and Seller shall promptly deliver joint written instructions to the Escrow Agent instructing the Escrow Agent to pay the entire Adjustment Escrow Fund to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Closing Inventory Amount as reflected on the Final Closing Inventory Statement is greater than the Estimated Closing Inventory Amount (the amount of such excess, the "**Excess Amount**"), then (A) Buyer shall, within five (5) Business Days of the final determination of the same, pay to Seller the Excess Amount by wire transfer of immediately available funds to an account specified in writing by Seller at least two (2) Business Days in advance, and (B) Buyer and Seller shall promptly deliver joint written instructions to the Escrow Agent instructing the Escrow Agent to pay the entire Adjustment Escrow Fund to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Closing Inventory Amount as reflected on the Final Closing Inventory Statement is less than the Estimated Closing Inventory Amount (the absolute value of such deficiency, the "**Shortfall Amount**"), then (A) if the funds in the Adjustment Escrow Fund are less than the Shortfall Amount, (1) Buyer and Seller shall promptly deliver joint written instructions to the Escrow Agent instructing the Escrow Agent to pay the entire Adjustment Escrow Fund to Buyer, and (2) Seller shall, within five (5) Business Days of the final determination of the same, pay to Buyer the amount of the difference between the Shortfall Amount and the Adjustment Escrow Fund by wire transfer of immediately available funds to an account specified in writing by Buyer at least two (2) Business Days in advance, and (B) if the funds in the Adjustment Escrow Fund are equal to or greater than the Shortfall Amount, Buyer and Seller shall promptly deliver joint written instructions to the Escrow Agent instructing the Escrow Agent to (1) pay the

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Shortfall Amount from the Adjustment Escrow Fund to Buyer and (2) pay the remaining funds in the Adjustment Escrow Fund (if any) to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon delivery of the Final Closing Inventory Statement pursuant to Section 1.05(c):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Closing Finished Goods Inventory Amount as reflected on the Final Closing Inventory Statement is greater than the Estimated Closing Finished Goods Inventory Amount (the amount of such excess, the "**Finished Goods Excess Amount**"), then Buyer shall, within five (5) Business Days of the final determination of the same, pay to Seller the Finished Goods Excess Amount by wire transfer of immediately available funds to an account specified in writing by Seller at least two (2) Business Days in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Closing Finished Goods Inventory Amount as reflected on the Final Closing Inventory Statement is less than the Estimated Closing Finished Goods Inventory Amount (the absolute value of such deficiency, the "**Finished Goods Shortfall Amount**"), then Seller shall, within five (5) Business Days of the final determination of the same, pay to Buyer the Finished Goods Shortfall Amount by wire transfer of immediately available funds to an account specified in writing by Buyer at least two (2) Business Days in advance.

After giving effect to the adjustments required under Section 1.05(d), if funds are available in the Adjustment Escrow Fund to satisfy the adjustments required under this Section 1.05(e), the Parties may satisfy the requisite adjustments under this Section 1.05(e) from the Adjustment Escrow Fund, in part or in full. For the avoidance of doubt, no amount shall be counted more than once for purposes of adjustments to the Purchase Price under this Section 1.05.

**Section 1.06 TC "Section 1.06 Allocation of Purchase Price." \l 2Allocation of Purchase Price.** The Purchase Price and the Assumed Liabilities shall be allocated among the Purchased Assets for all purposes (including Tax and financial accounting) as shown on the allocation schedule set forth on **Schedule 1.06** (the "**Allocation Schedule**"). The Allocation Schedule shall be prepared in accordance with Section 1060 of the Internal Revenue Code of 1986, as amended. Buyer and Seller shall file all returns, declarations, reports, information returns and statements, and other documents relating to Taxes (including amended returns and claims for refund) ("**Tax Returns**") in a manner consistent with the Allocation Schedule.

**Section 1.07 TC "Section 1.07 Non-Assignable Assets." \l 2Non-Assignable Assets.** Notwithstanding anything to the contrary in this Agreement, this Agreement shall not constitute a sale, assignment, or transfer of any Purchased Asset or Assumed Liability if such sale, assignment, or transfer: (a) violates applicable Law; or (b) requires the Consent or waiver of a Person who is not a party to this Agreement or an Affiliate of a party to this Agreement and such Consent or waiver has not been obtained prior to the Closing. Seller will use its reasonable best efforts to obtain the Consent of such other Person to the assignment or transfer of any such Purchased Asset to Buyer in all cases in which such Consent is or may be required for such assignment or transfer. Buyer will, without incurring any additional cost or expense, reasonably cooperate with Seller in its efforts to obtain such Consents. If any such Consent is not obtained with respect to a Purchased Asset, Seller will use its reasonable best efforts to provide an alternate arrangement satisfactory to Buyer that is designed to provide to Buyer the full economic benefits intended to be assigned or transferred to Buyer under the relevant Purchased Asset. Without limiting the generality of the foregoing, the beneficial interest in and to the Purchased Asset, to the fullest extent permitted by the relevant Purchased Asset, will pass in full to Buyer at the Closing.

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**Section 1.08 TC "Section 1.08 Withholding Taxes." \l 2Withholding Taxes.** Buyer shall be entitled to deduct and withhold from amounts otherwise payable pursuant to this Agreement such amounts as are required to be deducted and withheld under applicable law. Buyer shall provide Seller with written notice of its intent to withhold at least five (5) days prior to the Closing with a written explanation substantiating the requirement to deduct or withhold, and the parties shall use commercially reasonable efforts to cooperate to mitigate or eliminate any such withholding to the maximum extent permitted by law. To the extent that amounts are so withheld and paid over to the appropriate tax authority by Buyer, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the person in respect of which such deduction and withholding was made.

**ARTICLE IITC "ARTICLE II CLOSING" \l 1<br>Closing**

**Section 2.01 TC "Section 2.01 Closing." \l 2Closing.** Subject to the terms of this Agreement, the consummation of the transactions contemplated by this Agreement (the "**Closing**") shall take place remotely by exchange of documents and signatures (or their electronic counterparts) simultaneously with the execution of this Agreement, or at such other time or place or in such other manner as Seller and Buyer may mutually agree in writing. The date on which the Closing is to occur is herein referred to as the "**Closing Date**." The Closing shall be deemed effective as of 11:59:59 p.m. Central Time (CT) on the Closing Date.

**Section 2.02 TC "Section 2.02 Seller Deliverables." \l 2Seller Deliverables.** At the Closing, in addition to the documents set forth in Section 2.04, Seller shall deliver to Buyer the following:

&nbsp;&nbsp;&nbsp;&nbsp;&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) a bill of sale transferring the Purchased Assets to Buyer (the "**Bill of Sale**"), duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&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) an assignment and assumption agreement effecting the assignment to and assumption by Buyer of the Purchased Assets and the Assumed Liabilities (the "**Assignment and Assumption Agreement**"), duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&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) an intellectual property assignment and assumption agreement effecting the assignment to and assumption by Buyer of the Intellectual Property Assets (the "**IP Assignment and Assumption Agreement**"), duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&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) the Escrow Agreement, duly executed by Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a certificate of the Secretary (or equivalent officer) of Seller certifying as to (i) the resolutions of the board of directors and the stockholders of Seller, which authorize the execution, delivery, and performance of this Agreement, the Bill of Sale, the Assignment and Assumption Agreement, the IP Assignment and Assumption Agreement, the Transition Services Agreement, the Escrow Agreement, and the other agreements, instruments, and documents required to be delivered in connection with this Agreement or at the Closing (collectively, the "**Transaction Documents**") and the consummation of the transactions contemplated hereby and thereby and (ii) the names and signatures of the officers of Seller authorized to sign this Agreement and the other Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) customer data, including customer names, customer contact information, sales histories, open quotes, and active sales leads to the extent related to the Scheduled Styles;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) a copy of the resale certificate provided to Seller's vendors for the applicable Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) that certain Manufacturing Supply Agreement, substantially in the form attached hereto as **Exhibit E** (the "**Supply Agreement**"), duly executed by Seller's wholly-owned subsidiaries Weifang Lakeland Safety Products Co., Ltd., a Chinese company limited by shares, and Lakeland Industries Co., Ltd., a Vietnamese limited liability company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) delivery of all Payoff Letters, in a form reasonably acceptable to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) evidence of the release of all Encumbrances applicable to the Purchased Assets, in a form reasonably acceptable to Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) such other customary instruments of transfer or assumption, filings, or documents, in form and substance reasonably satisfactory to Buyer, as may be required to give effect to the transactions contemplated by this Agreement.

**Section 2.03 TC "Section 2.03 Buyer Deliverables." \l 2Buyer Deliverables.** At the Closing, in addition to the documents set forth in Section 2.04, Buyer shall deliver to Seller the following:

&nbsp;&nbsp;&nbsp;&nbsp;&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 Purchase Price by wire transfer of immediately available funds in accordance with Section 1.04;

&nbsp;&nbsp;&nbsp;&nbsp;&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) the Assignment and Assumption Agreement, duly executed by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&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) the IP Assignment and Assumption Agreement, duly executed by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&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) the Escrow Agreement, duly executed by Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a certificate of the Secretary (or equivalent officer) of Buyer certifying as to (i) the resolutions of the sole managing member of Buyer, which authorize the execution, delivery, and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby and (ii) the names and signatures of the officers of Buyer authorized to sign this Agreement and the other Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a resale exemption certificate for the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Supply Agreement, duly executed by Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) such other customary instruments of transfer or assumption, filings, or documents, in form and substance reasonably satisfactory to Seller, as may be required to give effect to the transactions contemplated by this Agreement.

**Section 2.04 TC "Section 2.04 Transition Services Agreement and Contract Manufacturing Agreement." \l 2Transition Services Agreement and Contract Manufacturing Agreement.**

&nbsp;&nbsp;&nbsp;&nbsp;&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) At the Closing, Seller and Buyer shall execute and deliver the Transition Services Agreement in the form attached hereto as **Exhibit B**. The Transition Services Agreement shall be a separate agreement between the parties and shall not modify, limit, or expand the terms of this

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Agreement. In the event of any inconsistency between this Agreement and the Transition Services Agreement, the terms of this Agreement shall 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;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the Closing, Seller and Buyer shall execute and deliver the Contract Manufacturing Agreement in the form attached hereto as **Exhibit C**. The Contract Manufacturing Agreement shall be a separate agreement between the parties and shall not modify, limit, or expand the terms of this Agreement. In the event of any inconsistency between this Agreement and the Contract Manufacturing Agreement, the terms of this Agreement shall control.

**ARTICLE IIITC "ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER" \l 1<br>Representations and warranties of seller**

Except as set forth in the Disclosure Schedules, Seller represents and warrants to Buyer that the statements contained in this ARTICLE III are true and correct as of the date hereof.

**Section 3.01 TC "Section 3.01 Organization and Authority of Seller." \l 2Organization and Authority of Seller.** Seller is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware. Seller has all necessary corporate power and authority to enter into this Agreement and the other Transaction Documents to which Seller is a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Seller of this Agreement and any other Transaction Document to which Seller is a party, the performance by Seller of its obligations hereunder and thereunder, and the consummation by Seller of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Seller. This Agreement and the Transaction Documents constitute legal, valid, and binding obligations of Seller enforceable against Seller in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

**Section 3.02 TC "Section 3.02 No Conflicts or Consents." \l 2No Conflicts or Consents.** The execution, delivery, and performance by Seller of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) violate or breach any provision of the certificate of incorporation or bylaws of Seller; (b) violate or breach any provision of any Law or Governmental Order applicable to Seller, the Business or the Purchased Assets; (c) except as set forth in Schedule 3.02 of the Disclosure Schedules, require the Consent, notice or other action by any Person under, conflict with, violate or breach, constitute a default under, or result in the acceleration of any contract included in the Purchased Assets or Assumed Liabilities; or (d) require any Consent, permit, Governmental Order, filing, or notice from, with, or to any Governmental Authority by or with respect to Seller in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby; except, in the cases of clauses (b) and (c), where the violation, breach, conflict, default, acceleration, or failure to obtain Consent or give notice would not have a Material Adverse Effect and, in the case of clause (d), where such Consent, permit, Governmental Order, filing, or notice which, in the aggregate, would not have a Material Adverse Effect.

**Section 3.03 TC "Section 3.03 Product-Level Financial Information." \l 2 Product-Level Financial Information.** Seller has made available to Buyer certain unaudited, product-level financial information relating solely to the Scheduled Styles, consisting of summaries of historical net sales, direct costs, and contribution margin for the three (3) most recently completed fiscal years of Seller and for the period from January 1, 2026 through January 31, 2026 (collectively, the "**Product Financial Information**"). The Product Financial Information has been derived from Seller's internal books and

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records and prepared on a carve-out and pro forma basis, allocating revenues and costs to the Scheduled Styles using methodologies Seller believes to be reasonable under the circumstances. The Product Financial Information has not been prepared in accordance with generally accepted accounting principles and does not purport to present the financial position, results of operations, or cash flows of a standalone business or operating unit. Seller makes no representation or warranty that the Product Financial Information is complete or that it would be comparable to financial statements prepared in accordance with generally accepted accounting principles or applicable to any other period or any other product line, nor does Seller make any representation or warranty regarding future performance, margins, or profitability of the Scheduled Styles. Except as expressly set forth in this Section 3.03, Seller makes no representation or warranty with respect to any financial information provided to Buyer in connection with this Agreement.

**Section 3.04 TC "Section 3.04 Absence of Certain Changes, Events and Conditions." \l 2Absence of Certain Changes, Events and Conditions.** Except as expressly contemplated by this Agreement, from January 1, 2026 until the date of this Agreement, Seller has operated the Business in the ordinary course of business in all material respects and there has not been any change, event, condition, or development that is materially adverse to: (a) the business, results of operations, financial condition, or assets of the Business, taken as a whole; or (b) the ability of Seller to consummate the transactions contemplated hereby.

**Section 3.05 TC "Section 3.05 Inventory." \l 2Inventory.** Seller has good and valid title to the Closing Inventory, free and clear of any lien, charge, claim, pledge, security interest, or other similar encumbrance (each, an "**Encumbrance**"), other than liens arising under applicable law for amounts not yet due. All inventory, whether or not reflected in the Product Financial Information, consists of quality and quantity usable and salable in the ordinary course of business consistent with past practice, except for obsolete, damaged, defective, or slow-moving items that have been written off or written down to fair market value or for which adequate reserves have been established. The quantities of each item of Closing Inventory (whether raw materials, work-in-process, or finished goods) are not excessive but are reasonable in the present circumstances of Seller. Seller represents that the Closing Inventory has been produced in material conformity with Seller's specifications for the Scheduled Styles in effect at the time of manufacture. Any assets located within Mexican territory that are included in the Closing Inventory have been imported on a temporary basis, were not imported on a definitive basis, were not sourced locally in Mexico, and have not exceeded their permanency periods according to the applicable Mexican customs and tax programs. Any assets in transit or designated for shipment to Mexican territory that are included in the Closing Inventory are imported on a temporary basis, are not imported on a definitive basis, are not sourced locally in Mexico, and have not exceeded their permanency periods according to the applicable Mexican customs and tax programs.

**Section 3.06 TC "Section 3.06 Title to Tangible Personal Property." \l 2Title to Tangible Personal Property.** Seller has good and valid title to, or a valid leasehold interest in, all Tangible Personal Property included in the Purchased Assets, free and clear of any Encumbrance, except for: (a) liens for Taxes not yet due and payable or being contested in good faith by appropriate procedures; (b) mechanics', carriers', workmen's, repairmen's, or other like liens arising or incurred in the ordinary course of business; (c) liens arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of business; (d) those Encumbrances set forth on Schedule 3.06(d) of the Disclosure Schedules; and (e) other imperfections of title or Encumbrances, if any, that would not have a Material Adverse Effect.

**Section 3.07 TC "Section 3.07 Sufficiency of Design and Technical Documentation." \l 2 Sufficiency of Design and Technical Documentation.** The design files, technical specifications, patterns, grading rules, bills of materials, construction specifications, and related documentation included in the Purchased Assets for each Scheduled Style are, in all material respects, sufficient to enable a manufacturer

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with appropriate equipment, facilities, personnel, and access to suitable raw materials and components to manufacture such Scheduled Style in substantially the same form and construction as manufactured by Seller prior to the Closing. Notwithstanding the foregoing, Seller makes no representation or warranty, express or implied, regarding (a) the availability, cost, or suitability of any equipment, tooling, raw materials, components, suppliers, or manufacturing facilities; (b) the ability of Buyer or any third party to manufacture the Scheduled Styles at any particular cost, quality level, volume, or timeframe; or (c) re-certification of any testing, certification, or regulatory approvals following the Closing.

**Section 3.08 TC "Section 3.08 Legal Proceedings; Governmental Orders." \l 2Legal Proceedings; Governmental Orders.**

&nbsp;&nbsp;&nbsp;&nbsp;&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) There are no claims, actions, suits, investigations, or other legal proceedings (collectively, "**Actions**") pending or, to Seller's knowledge, threatened against or by Seller relating to or affecting the Business, the Purchased Assets, or the Assumed Liabilities that, if determined adversely to Seller, would result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&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) There are no outstanding Governmental Orders against, relating to, or affecting the Business or the Purchased Assets that would have a Material Adverse Effect.

**Section 3.09 TC "Section 3.09 Compliance with Laws." \l 2Compliance with Laws.** Seller is in compliance in all material respects with all Laws applicable to the Business to the extent such Laws relate to the design, marketing, sale, distribution, labeling, testing, and historical certification of the Scheduled Styles or the Purchased Assets, except where the failure to be in compliance would not have a Material Adverse Effect.

**Section 3.10 TC "Section 3.10 Taxes." \l 2Taxes.** 

&nbsp;&nbsp;&nbsp;&nbsp;&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) Seller has filed (taking into account any valid extensions) all material Tax Returns with respect to the Business required to be filed by Seller for any tax periods prior to Closing and has paid all Taxes shown thereon as owing. Seller is not currently the beneficiary of any extension of time within which to file any material Tax Return other than extensions of time to file Tax Returns obtained in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Seller has complied in all material respects with the Mexican customs and tax programs applicable to the assets located within Mexican territory that are included in the Purchased Assets. Any assets located within Mexican territory that are included in the Purchased Assets have been imported on temporary basis and have not exceeded their permanency period under the applicable Mexican customs and tax programs.

&nbsp;&nbsp;&nbsp;&nbsp;&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) There are no audits, examinations, investigations, proceedings, or other Actions pending or, to Seller's knowledge, threatened with respect to any Taxes attributable to the Purchased Assets, and Seller has not received any written notice from any tax authority of any proposed assessment, deficiency, adjustment, or claim for additional Taxes with respect to the Purchased Assets that remains unresolved.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Seller has not executed, entered into, or agreed to any waiver, extension, or other agreement with any taxing authority extending or tolling the applicable statute of limitations with respect to any Taxes attributable to the Purchased Assets, and no such waiver or extension is currently in effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No transfer pricing adjustments, settlements, closing agreements, or similar arrangements have been proposed, asserted, or agreed to by Seller with any taxing authority, and there are no pending or, to Seller's knowledge, threatened disputes with any taxing authority, in each case relating to the manufacture, sale, or transfer of the Scheduled Styles or any intercompany arrangements of Seller relating thereto (including any manufacturing or supply arrangements involving Mexico).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The representations and warranties set forth in this Section 3.10 are Seller's sole and exclusive representations and warranties regarding Tax matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The term "**Taxes**" means all federal, state, local, foreign, and other income, gross receipts, sales, use, production, ad valorem, transfer, value added (including Mexican Value Added Tax), documentary, franchise, registration, profits, license, withholding, payroll, employment, unemployment, excise, severance, stamp, occupation, premium, property (real or personal), customs, duties, or other taxes, fees, assessments, or charges of any kind whatsoever, together with any interest, additions, or penalties with respect thereto.

**Section 3.11 TC "Section 3.11 Intellectual Property." \l 2Intellectual Property.** 

&nbsp;&nbsp;&nbsp;&nbsp;&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) Schedule 3.11(a) of the Disclosure Schedules contains a list of all of the registered Intellectual Property owned by Seller and included in the Purchased Assets (the "**Registered IP**"). The Registered IP is subsisting, valid, and enforceable. All fees have been paid, and all actions have been performed, as would be required to maintain the Registered IP through the Closing. Seller has title to all Registered IP free and clear of all Encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&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) All employees and independent contractors of Seller who have conceived or authored any material Intellectual Property owned by Seller and included in the Purchased Assets are subject to the work for hire doctrine with respect to such Intellectual Property, and no such employees or independent contractors have agreed in writing to assign such Intellectual Property to Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&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) During the two- (2-) year period prior to the date hereof, Seller has not received any written notices of infringement or misappropriation of any rights to Intellectual Property from any third party with respect to the use of Intellectual Property included in the Purchased Assets. No third party is materially infringing or misappropriating any Registered IP, and the Business as conducted by Seller prior to the Closing Date does not infringe upon any other Person's rights to any Intellectual Property.

**Section 3.12 TC "Section 3.12 Environmental Matters." \l 2Environmental Matters.** With respect to Seller's design, sourcing, assembly, storage, marketing, and sale of the Scheduled Styles prior to the Closing Date, Seller is in compliance in all material respects with all applicable Environmental, Health, and Safety Requirements. Seller has not received any written notice alleging any material violation of Environmental, Health, and Safety Requirements arising from Seller's conduct of such activities prior to the Closing Date nor, to Seller's knowledge, are there any pending investigatory, remedial, or corrective obligations relating to such activities. As used herein, "**Environmental, Health, and Safety Requirements**" means all federal, state, local, and foreign statutes, regulations, and ordinances concerning public health and safety, worker health and safety, pollution, or protection of the environment, including the storage, use, manufacturing, or processing involving hazardous materials or substances (including, without limitation, per- and poly-fluoroalkyl substances), wastes, chemicals, or other pollutants that are regulated or listed in Law.

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**Section 3.13 TC "Section 3.13 International Trade." \l 2International Trade.** With respect to Seller's import and export transactions relating to the Scheduled Styles or the Purchased Assets conducted by Seller prior to the Closing Date, Seller has complied in all material respects with all applicable U.S. import controls, all applicable export controls, and all applicable economic sanctions Laws, including those administered by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) and under the Export Administration Regulations. Seller has not received any written notice, and to Seller's knowledge, Seller has not received any oral notice, alleging any material violation of such Laws in connection with such transactions.

**Section 3.14 TC "Section 3.14 Related Party Transactions." \l 2Related Party Transactions.** To the extent materially related to the Scheduled Styles or the Purchased Assets, no equityholder, officer, director, or employee of Seller, or member of his or her immediate family or any of their respective Affiliates ("**Related Persons**"): (a) owes any material amount to Seller or any of its Affiliates arising directly from the Purchased Assets, nor does Seller or any of its Affiliates owe any material amount to any Related Person arising from the Purchased Assets; (b) is party to any written or oral agreement, arrangement, understanding, or contract with Seller or any of its Affiliates that relates directly to the Purchased Assets and that will survive the Closing; (c) owns any property or right, tangible or intangible, that is used in connection with the Scheduled Styles and that is not included in the Purchased Assets; (d) has any claim or cause of action against Seller or any of its Affiliates that arises from the Purchased Assets; or (e) owns any direct or indirect interest of any kind in, or controls or is a director, officer, employee, partner, member, manager, consultant to, lender to, or borrower from, any Person that is a supplier or customer related to the Purchased Assets in a manner that would reasonably be expected to give rise to a material conflict of interest with respect to the Purchased Assets following the Closing.

**Section 3.15 TC "Section 3.15 Brokers." \l 2Brokers.** Except for Cherry Tree and Associates, no broker, finder, or investment banker is entitled to any brokerage, finder's, or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Seller.

**Section 3.16 TC "Section 3.16 No Other Representations and Warranties." \l 2No Other Representations and Warranties.** Except for the representations and warranties contained in this ARTICLE III (including the related portions of the Disclosure Schedules), neither Seller nor any other Person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of Seller, including any representation or warranty as to the accuracy or completeness of any information, documents, or material regarding the Business and the Purchased Assets furnished or made available to Buyer and its Representatives in any form (including any information, documents, or material made available to Buyer in Seller's virtual data room maintained by FirmRoom on behalf of Seller for purposes of this Agreement or any management presentations made in expectation of the transactions contemplated hereby), or as to the future revenue, profitability, or success of the Business, or any representation or warranty arising from statute or otherwise in Law.

**ARTICLE IVTC "ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER" \l 1<br>Representations and warranties of buyer**

Buyer represents and warrants to Seller that the statements contained in this ARTICLE IV are true and correct as of the date hereof.

**Section 4.01 TC "Section 4.01 Organization and Authority of Buyer." \l 2Organization and Authority of Buyer.** Buyer is a limited liability company duly organized, validly existing, and in good standing under the Laws of the State of Delaware. Buyer has all necessary limited liability company power and authority to enter into this Agreement and the other Transaction Documents to which Buyer is a party,

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to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Buyer of this Agreement and any other Transaction Document to which Buyer is a party, the performance by Buyer of its obligations hereunder and thereunder, and the consummation by Buyer of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Buyer. This Agreement and the Transaction Documents constitute legal, valid and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting creditors' rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

**Section 4.02 TC "Section 4.02 No Conflicts; Consents." \l 2No Conflicts; Consents.** The execution, delivery and performance by Buyer of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) violate or breach any provision of the certificate of incorporation or bylaws of Buyer; (b) violate or breach any provision of any Law or Governmental Order applicable to Buyer; (c) require the Consent, notice, or other action by any Person under, conflict with, violate or breach, constitute a default under, or result in the acceleration of any agreement to which Buyer is a party; or (d) require any Consent, permit, Governmental Order, filing, or notice from, with, or to any Governmental Authority by or with respect to Buyer in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby; except, in the cases of clauses (b) and (c), where the violation, breach, conflict, default, acceleration, or failure to obtain Consent or give notice would not have a material adverse effect on Buyer's ability to consummate the transactions contemplated hereby and, in the case of clause (d), where such Consent, permit, Governmental Order, filing, or notice which, in the aggregate, would not have a material adverse effect on Buyer's ability to consummate the transactions contemplated hereby.

**Section 4.03 TC "Section 4.03 Solvency; Sufficiency of Funds." \l 2Solvency; Sufficiency of Funds.** Immediately after giving effect to the transactions contemplated hereby, Buyer shall be solvent and shall: (a) be able to pay its debts as they become due; (b) own property that has a fair saleable value greater than the amounts required to pay its debts (including a reasonable estimate of the amount of all Liabilities); and (c) have adequate capital to carry on its business. No transfer of property is being made, and no obligation is being incurred in connection with the transactions contemplated hereby with the intent to hinder, delay, or defraud either present or future creditors of Buyer or Seller. In connection with the transactions contemplated hereby, Buyer has not incurred, nor plans to incur, debts beyond its ability to pay as they become absolute and matured.

**Section 4.04 TC "Section 4.04 Legal Proceedings." \l 2Legal Proceedings.** There are no Actions pending or, to Buyer's knowledge, threatened against or by Buyer that challenge or seek to prevent, enjoin, or otherwise delay the transactions contemplated by this Agreement.

**Section 4.05 TC "Section 4.05 Brokers." \l 2Brokers.** No broker, finder, or investment banker is entitled to any brokerage, finder's, or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Buyer.

**Section 4.06 TC "Section 4.06 Independent Investigation." \l 2Independent Investigation.** Buyer has conducted its own independent investigation, review, and analysis of the Business and the Purchased Assets and acknowledges that it has been provided adequate access to the personnel, properties, assets, premises, books and records, and other documents and data of Seller for such purpose. Buyer acknowledges and agrees that: (a) in making its decision to enter into this Agreement and to consummate the transactions contemplated hereby, Buyer has relied solely upon its own investigation and the express

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representations and warranties of Seller set forth in ARTICLE III of this Agreement (including related portions of the Disclosure Schedules); and (b) neither Seller nor any other Person has made any representation or warranty as to Seller, the Business, the Purchased Assets, or this Agreement, except as expressly set forth in ARTICLE III of this Agreement (including the related portions of the Disclosure Schedules).

**ARTICLE VTC "ARTICLE V COVENANTS" \l 1<br>Covenants**

**Section 5.01 TC "Section 5.01 Confidentiality." \l 2Confidentiality.** From and after the Closing, Seller shall hold, and shall cause each of its Affiliates and their respective Representatives to hold, in confidence any and all information, whether written or oral, concerning the Business, the Purchased Assets, and the Assumed Liabilities, except to the extent that Seller can show that such information: (a) is generally available to and known by the public through no fault of Seller, its Affiliates, or their respective Representatives; or (b) is lawfully acquired by Seller, its Affiliates, or their respective Representatives from and after the Closing from sources which are not prohibited from disclosing such information by a legal, contractual, or fiduciary obligation. If Seller, its Affiliates, or any of their respective Representatives are compelled to disclose any information by a Governmental Authority or Governmental Order, then Seller will promptly notify Buyer in writing and will disclose only that portion of such information which it is advised by counsel to disclose or is legally required to be disclosed; provided, however, that Seller will use reasonable best efforts to obtain as promptly as possible an appropriate protective order or other reasonable assurance that confidential treatment will be accorded such information.

**Section 5.02 TC "Section 5.02 Non-Competition; Non-Solicitation; No Circumvention." \l 2Non-Competition; Non-Solicitation; Non-Circumvention.** 

&nbsp;&nbsp;&nbsp;&nbsp;&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) For a period of five (5) years following the Closing Date (the "**Restricted Period**"), Seller shall not, and shall cause each of its Affiliates not to, directly or indirectly: (i) design, develop, manufacture, market, or sell Competing Products, (ii) have an interest in any Person that engages directly or indirectly in the business of manufacturing, marketing, or selling any Competing Products in any capacity, including as a partner, shareholder, director, member, manager, employee, principal, agent, trustee, or consultant; or (iii) cause, induce, or encourage any actual or prospective client, customer, supplier, or licensor of the Scheduled Styles or Competing Products (including any existing or former client or customer of Seller that has conducted business with Seller during the two- (2-) year period prior to the Closing Date and any Person that becomes a client or customer of Seller after the Closing), or any other Person who has a business relationship with Seller related to the Competing Products, to terminate or modify any such actual or prospective relationship. Nothing in this Section 5.02 shall restrict Seller or its Affiliates from continuing to manufacture, market, or sell any other products in Seller's or its Affiliates' existing or future product portfolio, including to customers that may also purchase the Scheduled Styles, so long as such products do not constitute Competing Products. The restrictive covenants set forth in this Section 5.02(a) shall apply only to Seller's activities in North America, South America (except for Argentina), and Latin America (the "**Territory**"). Nothing in this Section 5.02 shall restrict or prohibit Seller or any of its Affiliates (including Lakeland Industries Holdings Pty Ltd (d/b/a LHD Group Australia) or any successor thereto) from manufacturing, marketing, or selling any products (including products that are the same as or similar to the Scheduled Styles) outside of the Territory, provided that Seller and its Affiliates do not use any Intellectual Property or any other property included in the Purchased Assets in connection with such activities. Notwithstanding clause (ii) in the first sentence of this Section 5.02(a), the ownership by Seller or any of its Affiliates of less than five 5% of the outstanding equity interests of any publicly traded entity shall not be deemed a violation of this Section 5.02(a).

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&nbsp;&nbsp;&nbsp;&nbsp;&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) During the Restricted Period, Seller shall not intentionally divert customers within the Territory seeking the Scheduled Styles to Competing Products. If Seller becomes aware that a customer is specifically seeking to purchase a Scheduled Style, Seller shall (i) promptly notify Buyer via Megan Porter (mporter@thinknsa.com) of receipt of such customer inquiry and provide such customer's name and contact information to Buyer and (ii) use commercially reasonable efforts to direct such customer to Buyer, including by providing such customer with the following contact information of Buyer: Megan Porter (mporter@thinknsa.com). Seller shall have no obligation to guarantee that any customer purchases from Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&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) For purposes of this Section 5.02, a "**Competing Product**" means a product that has substantially the same intended use and material functional characteristics as a Scheduled Style, including any successor, derivative, modified, updated, re-engineered, or functionally equivalent version of a Scheduled Style, regardless of whether such product is assigned a new style number or designation; provided, however, that a Competing Product shall not include: (i) fire and industrial traffic vests; (ii) any product listed on **Schedule 5.02(c)** (collectively, the "**Competing Products Exceptions**"); or (iii) any product manufactured, marketed, or sold by Seller or its Affiliates outside of the Territory provided that such product does not incorporate, display, or otherwise use any Intellectual Property or any other property included in the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&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) During the Restricted Period, Seller shall not, and shall cause its Affiliates not to, directly or indirectly hire or solicit any Person who is or was employed or engaged as a contractor by Buyer during the two- (2-) year period prior to the Closing Date, or encourage any such employee or contractor to leave such employment or relationship, or hire any such employee or contractor who has left such employment or engagement, except pursuant to a general solicitation which is not directed specifically to any such employees or contractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Seller acknowledges that a breach or threatened breach of Section 5.01 or this Section 5.02 would give rise to irreparable harm to Buyer for which monetary damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by Seller of any such obligations, Buyer will, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance, and any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond). Seller acknowledges that the restrictions contained in Section 5.01 and this Section 5.02 are reasonable and necessary to protect the legitimate interests of Buyer and constitute a material inducement to Buyer to enter into this Agreement and consummate the Transactions. In the event that any covenant contained in Section 5.01 or this Section 5.02 should ever be adjudicated to exceed the time, geographic, product, service, or other limitations permitted by applicable Law in any jurisdiction or any court order, then any court is expressly empowered to reform such covenant in such jurisdiction to the maximum time, geographic, product, service, or other limitations permitted by applicable Law or such order. The covenants contained in Section 5.01 and this Section 5.02 and each provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written will not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction will not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

**Section 5.03 TC "Section 5.03 Public Announcements." \l 2Public Announcements.** Unless otherwise required by applicable Law, neither party to this Agreement shall make any public announcements in respect of this Agreement or the transactions contemplated hereby without the prior written Consent of the other party (which Consent shall not be unreasonably withheld, conditioned, or delayed), and the parties shall cooperate as to the timing and contents of any such announcement.

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**Section 5.04 TC "Section 5.04 Bulk Sales Laws." \l 2Bulk Sales Laws.** The parties hereby waive compliance with the provisions of any bulk sales, bulk transfer, or similar Laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Buyer.

**Section 5.05 TC "Section 5.05 Transfer Taxes." \l 2Transfer Taxes.** All transfer, sales, use, registration, documentary, stamp, value added, and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement and the other Transaction Documents, if any, shall be borne and paid by Seller when due. Seller shall, at its own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Seller shall cooperate with respect thereto as necessary); it being understood that any Losses arising out of the failure of Seller to comply with the requirements and provisions of any bulk sales, bulk transfer, or similar Laws of any jurisdiction shall be treated as liabilities and obligations retained by Seller.

**Section 5.06 TC "Section 5.06 Further Assurances." \l 2Further Assurances.** Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances, and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and the other Transaction Documents.

**Section 5.07 TC "Section 5.07 IMMEX Program and Temporary Imports." \l 2IMMEX Program and Temporary Imports.** Any inventory included in the Purchased Assets that has been temporarily imported into Mexico shall be transferred to Buyer without physical delivery within Mexican territory and shall remain under the IMMEX registration of the Seller's subsidiary through which such inventory was originally imported, until such time as such inventory is physically exported from Mexico or virtually exported through a transfer in accordance with applicable Mexican customs laws and regulations; (ii) definitively imported into Mexico by Buyer or its designee in compliance with all applicable Laws and with full payment of any applicable duties, taxes, and fees.

**Section 5.08 TC "Section 5.08 Transitional License." \l 2Transitional License.** Seller, on behalf of itself and its Affiliates, hereby grants to Buyer a non-exclusive, non-transferable, fully paid up, royalty-free, worldwide license to use any of Seller's name, trademarks, service marks, trade names, brands, logos, slogans, trade dress, and other indicia of source or origin, to the extent apparent or otherwise incorporated in the products or materials sold or transferred by Seller to Buyer under this Agreement, the Contract Manufacturing Agreement, the Transition Services Agreement, or the Supply Agreement, for two (2) years after the Closing Date in connection with the marketing, distribution and/or sale of such products. This Section 5.08 takes precedence and supersedes anything to the contrary in any Transaction Document.

**ARTICLE VITC "ARTICLE VI INDEMNIFICATION" \l 1<br>Indemnification**

**Section 6.01 TC "Section 6.01 Survival." \l 2Survival.** Subject to the limitations and other provisions of this Agreement, the representations and warranties contained herein shall survive the Closing and shall remain in full force and effect until the date that is twelve (12) months from the Closing Date; provided, however, that the Fundamental Representations shall survive the Closing until the date that is seven (7) years from the Closing Date. "**Fundamental Representations**" as used herein means Section 3.01 (Organization and Authority of Seller), Section 3.06 (Title to Tangible Personal Property), Section 3.07 (Sufficiency of Design and Technical Documentation), Section 3.10 (Taxes), Section 3.11(a) (Intellectual Property), Section 3.14 (Related Party Transactions), and Section 3.15 (Brokers). The covenants shall survive the Closing in accordance with their respective terms or, if no term is specified, indefinitely. Claims arising from fraud or intentional misrepresentation will survive the Closing indefinitely. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity

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(to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of such survival period, and such claims shall survive until finally resolved.

**Section 6.02 TC "Section 6.02 Indemnification by Seller." \l 2Indemnification by Seller.** Subject to the other terms and conditions of this ARTICLE VI, from and after the Closing, Seller shall indemnify Buyer against, and shall hold Buyer harmless from and against, any and all losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys' fees (collectively, "**Losses**"), incurred or sustained by, or imposed upon, Buyer based upon, arising out of, with respect to, or by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&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 inaccuracy in or breach of any of the representations or warranties of Seller or any of its Affiliates contained in this Agreement or any other Transaction Document;

&nbsp;&nbsp;&nbsp;&nbsp;&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 breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller or any of its Affiliates pursuant to this Agreement or any other Transaction Document; 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;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Excluded Asset or Retained Liability.

**Section 6.03 TC "Section 6.03 Indemnification by Buyer." \l 2Indemnification by Buyer.** Subject to the other terms and conditions of this ARTICLE VI, from and after the Closing, Buyer shall indemnify Seller against, and shall hold Seller harmless from and against, any and all Losses incurred or sustained by, or imposed upon, Seller based upon, arising out of, or with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&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 inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement or any other Transaction Document;

&nbsp;&nbsp;&nbsp;&nbsp;&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 breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement or any other Transaction Document; 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;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to Seller's obligations in Section 6.02, any Assumed Liability.

**Section 6.04 TC "Section 6.04 Certain Limitations." \l 2Certain Limitations.** The party making a claim under this ARTICLE VI is referred to as the "**Indemnified Part**y," and the party against whom such claims are asserted under this ARTICLE VI is referred to as the "**Indemnifying Party**." The indemnification provided for in Section 6.02 and Section 6.03 shall be subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&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 Indemnifying Party shall not be liable to the Indemnified Party for indemnification under Section 6.02(a) or Section 6.03(a), as the case may be, until the aggregate amount of all Losses in respect of indemnification under Section 6.02(a) or Section 6.03(a), as the case may be, exceeds 1% of the Purchase Price (the "**Deductible**"), in which event the Indemnifying Party shall pay or be liable for the entire amount of the Losses from the first dollar; provided, however, that the Deductible shall not apply with respect to any claims arising from fraud or intentional misrepresentation or for any inaccuracy in or breach of a Fundamental Representation.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The aggregate amount of all Losses for which an Indemnifying Party shall be liable pursuant to Section 6.02(a) or Section 6.03(a), as the case may be, shall not exceed 50% of the Purchase Price (the "**Cap**"); provided, however, that the Cap shall not apply with respect to any claims arising from fraud or intentional misrepresentation or for any inaccuracy in or breach of a

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Fundamental Representation; provided further, however, that the aggregate amount of all Losses for which an Indemnifying Party shall be liable pursuant to Section 6.02(a) or Section 6.03(a), as the case may be, for any inaccuracy in or breach of a Fundamental Representation, in the absence of fraud or intentional misrepresentation, shall not exceed the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&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) In no event shall any Indemnifying Party be liable to any Indemnified Party for any punitive damages, except to the extent actually payable to a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&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) For purposes of determining whether a breach of any representation or warranty exists and the amount of Losses resulting therefrom, the determination shall, in each case, be made without references to the terms "material," "materiality," "Material Adverse Effect," or other similar qualifications as to materiality (other than specific monetary thresholds) contained in any such representation or warranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Indemnifying Party shall take, and cause its Affiliates to take, all steps required by Law to mitigate any Losses upon becoming aware of any event or circumstance that would be reasonably expected to, or does, give rise thereto.

**Section 6.05 TC "Section 6.05 Indemnification Procedures." \l 2Indemnification Procedures.** Whenever a claim arises for indemnification hereunder, the Indemnified Party shall promptly provide written notice of such claim to the Indemnifying Party. Such notice by the Indemnified Party shall describe the claim in reasonable detail and indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. Failure to give notice shall not relieve the Indemnifying Party of its indemnification obligations except to the extent such failure materially prejudices the Indemnifying Party. In connection with any claim giving rise to indemnity hereunder resulting from or arising out of any Action by a Person who is not a party to this Agreement, the Indemnifying Party, at its sole cost and expense and upon written notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory to the Indemnified Party; provided, however, that the Indemnifying Party shall not be entitled to assume or control the defense of any such Action if (a) such Action seeks injunctive or other non-monetary relief or (b) such Action would reasonably be expected to have a Material Adverse Effect on the Indemnified Party or its business, in each case unless the Indemnified Party otherwise Consents in writing. The Indemnified Party shall be entitled to participate in the defense of any such Action with its counsel and at its own cost and expense subject to the Indemnifying Party's right to control the defense thereof. If the Indemnifying Party does not assume the defense of any such Action, the Indemnified Party may, but shall not be obligated to, defend against such Action in such manner as it may deem appropriate, including settling such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying Party of its indemnification obligations herein provided with respect to any damages resulting therefrom. Seller and Buyer shall cooperate with each other in all reasonable respects in connection with the defense of any claim, including (x) making available (subject to the provisions of Section 5.01) records relating to such claim and (y) furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such claim. The Indemnifying Party shall not settle any Action without the Indemnified Party's prior written Consent (which Consent shall not be unreasonably withheld, conditioned, or delayed; provided, however, that such settlement includes an unconditional release of the Indemnified Party from all liability with respect to such Action).

**Section 6.06 TC "Section 6.06 Tax Treatment of Indemnification Payments." \l 2Tax Treatment of Indemnification Payments.** All indemnification payments made under this Agreement shall

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be treated by the parties as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.

**Section 6.07 TC "Section 6.07 Exclusive Remedies." \l 2Exclusive Remedies.** The parties acknowledge and agree that from and after the Closing their sole and exclusive remedy with respect to any and all claims (other than claims arising from fraud or intentional misrepresentation on the part of a party hereto in connection with the transactions contemplated by this Agreement) for any breach of any representation, warranty, covenant, agreement, or obligation set forth herein or otherwise relating to the subject matter of this Agreement shall be pursuant to the indemnification provisions set forth in this ARTICLE VI. Nothing in this Section 6.07 shall limit any Person's right to seek and obtain any equitable relief to which such Person may be entitled.

**Section 6.08 TC "Section 6.08 Indemnification Escrow Fund." \l 2Indemnification Escrow Fund.** Any Losses payable to Buyer and its Affiliates and their respective representatives (collectively, the "**Buyer Indemnitees**") pursuant to this ARTICLE VI shall be satisfied (a) first from the remaining amount of the Indemnification Escrow Fund and (b) to the extent Losses exceed the remaining amount of the Indemnification Escrow Amount, from Seller. If Buyer becomes entitled, following the resolution of any dispute in connection therewith, to any distribution of all or any portion of the Indemnification Escrow Amount pursuant to this ARTICLE VI, Buyer and Seller shall take all actions necessary under the Escrow Agreement (including the execution and delivery of joint written instructions to the Escrow Agent) to cause the Escrow Agent to release to Buyer the amounts to be paid from the Indemnification Escrow Fund to Buyer in accordance with this Agreement. If Buyer delivers to Seller proposed joint written instructions for the Escrow Agent in the form set forth in Exhibit B of the Escrow Agreement, and Seller neither signs nor rejects the instructions in writing within thirty (30) days of receipt thereof, Buyer may independently send such instructions (including the same payment amount(s) and wire instructions) in the form set forth in Exhibit C of the Escrow Agreement to the Escrow Agent. Promptly following the date that is twelve (12) months following the Closing Date (the "**Expiration Date**"), and subject to the terms and conditions set forth in this ARTICLE VI and the Escrow Agreement, Buyer and Seller shall deliver joint written instructions instructing the Escrow Agent to release to Seller the remaining portion of the Indemnification Escrow Amount <u>less</u> the portion that is reasonably necessary to cover the estimated Losses related to any Continuing Claims (as defined below). Such portion of the Indemnification Escrow Fund shall remain held by the Escrow Agent in escrow until all applicable claims for Losses related to the Continuing Claim have been finally resolved or satisfied; provided, that, in the event and to the extent that after the Expiration Date, any Continuing Claim for Damages is resolved for any amount less than the full amount retained in escrow for such claim, then Buyer and Seller shall deliver joint written instructions instructing the Escrow Agent to release the excess amount to Seller and the amount of the resolved claim to the Buyer within five (5) Business Days following the resolution thereof. "**Continuing Claims**" as used herein means any claims under this ARTICLE VI asserted in good faith by a Buyer Indemnitee prior to the Expiration Date that is not fully resolved as of the Expiration Date.

**ARTICLE VIITC "ARTICLE VII MISCELLANEOUS" \l 1<br>Miscellaneous**

**Section 7.01 TC "Section 7.01 Expenses." \l 2Expenses.** Except as otherwise expressly provided herein, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

**Section 7.02 TC "Section 7.02 Notices." \l 2Notices.** All notices, claims, demands, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by email (with confirmation of

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transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third (3<sup>rd</sup>) day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 7.02):

If to Buyer: National Safety Apparel, LLC<br>15825 Industrial Parkway<br>Cleveland, OH 44135<br>Attn: Chuck Grossman<br>Email: [\*\*\*]

with a copy (which shall not constitute notice) to: Baker & Hostetler LLP<br>127 Public Square, Suite 2000<br>Cleveland, OH 44114<br>Attn: John Allotta<br>Email: [\*\*\*]

If to Seller: Lakeland Industries, Inc.<br>1525 Perimeter Parkway, Suite 325<br>Huntsville, AL 35806<br>Attn: J. Calven Swinea Jr.<br>Email: [\*\*\*]

with a copy (which shall not constitute notice) to: Maynard Nexsen PC<br>655 Gallatin Street SW<br>Huntsville, AL 35801<br>Attn: Richard Marsden<br>Email: [\*\*\*]

**Section 7.03 TC "Section 7.03 Interpretation; Headings." \l 2Interpretation; Headings.** This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

**Section 7.04 TC "Section 7.04 Severability." \l 2Severability.** If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement.

**Section 7.05 TC "Section 7.05 Entire Agreement." \l 2Entire Agreement.** This Agreement and the other Transaction Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein and supersede all prior and contemporaneous representations, warranties, understandings, and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement and those in the other Transaction Documents, the Exhibits, the Schedules, and the Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

**Section 7.06 TC "Section 7.06 Successors and Assigns; Assignment." \l 2Successors and Assigns; Assignment.** This Agreement is binding upon and inures to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign any of its rights or obligations

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hereunder without the prior written Consent of the other party, which such Consent shall not be unreasonably withheld, conditioned, or delayed; provided, however, that Buyer may assign all or any portion of its rights hereunder to any lender (or agent) or Affiliate thereof providing financing to Buyer for collateral security purposes, in each case, without the prior Consent of Seller. Any purported assignment in violation of this Section shall be null and void. No assignment shall relieve the assigning party of any of its obligations hereunder.

**Section 7.07 TC "Section 7.07 Amendment and Modification; Waiver." \l 2Amendment and Modification; Waiver.** This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No failure to exercise, or delay in exercising, any right or remedy arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy.

**Section 7.08 TC "Section 7.08 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial." \l 2Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All matters arising out of or relating to this Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to the conflict of law provisions thereof to the extent such provisions would require or permit the application of the laws of any jurisdiction other than the State of Delaware. Any legal suit, action, proceeding, or dispute arising out of or relating to this Agreement, the other Transaction Documents, or the transactions contemplated hereby or thereby may be instituted in the federal courts of the United States of America or the courts of the State of Delaware in each case located in Wilmington, Delaware, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, proceeding, or dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING, CAUSE OF ACTION, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING ANY EXHIBITS AND SCHEDULES ATTACHED TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (I) NO REPRESENTATIVE OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION; (II) EACH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (III) EACH PARTY MAKES THIS WAIVER KNOWINGLY AND VOLUNTARILY; AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

**Section 7.09 TC "Section 7.09 Counterparts." \l 2Counterparts.** This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, email, or other means of electronic transmission (including in portable document format (pdf) or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com and www.simplyagree.com) shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

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**Asset Purchase Agreement**

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**Section 7.10 TC "Section 7.10 Non-Recourse." \l 2Non-Recourse.** This Agreement may only be enforced against, and any claim, action, suit, or other legal proceeding based upon, arising out of or related to this Agreement, or the negotiation, execution, or performance of this Agreement, may only be brought against the entities that are expressly named as parties hereto and then only with respect to the specific obligations set forth herein with respect to such party. No past, present, or future director, officer, employee, incorporator, manager, member, partner, stockholder, Affiliate, agent, attorney, or other Representative of any party hereto or of any Affiliate of any party hereto, or any of their successors or permitted assigns, shall have any liability for any obligations or liabilities of any party hereto under this Agreement or for any claim, action, suit, or other legal proceeding based on, in respect of or by reason of the transactions contemplated hereby.

**Section 7.11 TC "Section 7.11 Disclosure Schedules." \l 2Disclosure Schedules.** Any matter, information, or item disclosed in the disclosure schedules of Seller (the "**Disclosure Schedules**") delivered under any specific representation, warranty, or covenant, or Section hereof, shall be deemed to have been disclosed for all purposes of this Agreement in responses to each other representation, warranty, or covenant in this Agreement in respect of which the applicability of such disclosure is reasonably apparent on its face. The inclusion of any matter, information, or item in any Schedule of the Disclosure Schedules shall not be deemed to constitute an admission of any liability by Seller to any third party or otherwise imply that any such matter, information, or item is material or creates a measure for materiality for purposes of this Agreement.

**Section 7.12 TC "Section 7.12 Special Rule for Fraud." \l 2Special Rule for Fraud.** Notwithstanding anything herein to the contrary, in no event shall any limit or restriction on any rights or remedies set forth in this Agreement limit or restrict the rights or remedies of any party in the event of fraud, willful misconduct, or intentional misrepresentation by any other party or any Affiliate or representative of such other party. For the avoidance of doubt, as used herein, "fraud" means, with respect to any Person, common law fraud under the Laws of the State of Delaware in the making of the representations and warranties contained in this Agreement, the other Transaction Documents, or any certificate or instrument executed and delivered pursuant to the terms of the foregoing, as applicable.

**[Signature Page Follows]**

Page 23 of 23

**Asset Purchase Agreement**

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**IN WITNESS WHEREOF**, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

**BUYER**

NATIONAL SAFETY APPAREL, LLC

By: <u>/s/ Charles L. Grossman</u> 

Name: Charles L. Grossman, Jr.

Title: Chief Executive Officer

**SELLER**

LAKELAND INDUSTRIES, INC.

By: <u>/s/ J. Calven Swinea Jr.</u> 

Name: J. Calven Swinea Jr.

Title: Chief Financial Officer

Signature Page

**Asset Purchase Agreement**

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## Exhibit 10.2

**Exhibit 10.2**

LIMITED WAIVER<br>

This LIMITED WAIVER dated as of April 13, 2026 (this "<u>Waiver</u>") is by and among LAKELAND INDUSTRIES, INC., a Delaware corporation (the "<u>Borrower</u>"), BANK OF AMERICA, N.A. (the "<u>Bank</u>").

<u>W I T N E S S E T H</u>:

**WHEREAS,** the Borrower and Bank are parties to that certain Loan Agreement dated as of June 25, 2020, as amended by that certain Amendment No. 1 to Loan Agreement dated as of June 18, 2021, as further amended by that certain Amendment No. 2 to Loan Agreement dated as of March 3, 2023, as further amended by that certain Amendment No. 3 to Loan Agreement dated as of November 29, 2023, as further amended by that certain Amendment No. 4 to Loan Agreement dated as of March 28, 2024, as further amended by that certain Amendment No. 5 to Loan Agreement dated as of December 12, 2024, and as further amended by that certain Amendment No. 6 to Loan Agreement dated as of July 7, 2025 (as may be amended, restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>");

**WHEREAS**, the Borrower has failed to comply with (i) Section 7.3 of the Credit Agreement by failing to maintain a ratio of Funded Debt to EBITDA not exceeding 3.50:1.00 for the fiscal year ending January 31, 2026, and (ii) Section 7.4 of the Credit Agreement by failing to maintain a Basic Fixed Charge Coverage Ratio of at least 1.20:1.00 for the fiscal year ending January 31, 2026 (<u>clauses (i)</u> and <u>(ii)</u>, collectively, the "<u>Specified Non-Compliances</u>");

**WHEREAS**, as a result of the Specified Non-Compliances, non-compliance with the applicable financial covenants have occurred and are currently continuing under Section 9.12 of the Credit Agreement;

**WHEREAS**, in connection with the foregoing, the Borrower has requested that the Bank waive the Specified Non-Compliances, and the effects thereof, under the Credit Agreement; and

**WHEREAS**, the undersigned Bank is willing to waive the Specified Non-Compliances on the terms and conditions set forth herein.

**NOW, THEREFORE**, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties hereto agree as follows:

Section 1. <u>Definitions</u>. Except as otherwise defined herein, capitalized terms used herein shall have the meanings ascribed thereto in the Credit Agreement.

Section 2. <u>Limited Waiver</u>. Subject to the satisfaction of each of the conditions to effectiveness set forth in <u>Section 4</u> hereof, the Bank hereby waives the non-compliances arising under Section 9.12 of the Credit Agreement solely by virtue of the Specified Non-Compliances; <u>provided</u> that such waiver shall not (i) waive or amend (or be deemed to be or constitute an amendment to or waiver of) any other covenant, term or provision in the Credit Agreement or hinder, restrict or otherwise modify the rights and remedies of the Bank following the occurrence of any other present or future default or event of default (whether or not related to the requirements of Section 7.3 or 7.4 of the Credit Agreement) under the Credit Agreement or any other Loan

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Document or (ii) operate as a waiver of the agreement by Borrower to deliver to Bank, any financial information required by Section 7.2.

Section 3. <u>Representations and Warranties</u>. Borrower hereby represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&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) at the time of and immediately after giving effect to this Waiver, all representations and warranties of Borrower set forth in the Loan Documents are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a material adverse effect or other materiality, in which case such representations and warranties are true and correct in all respects) on and as of the date of this Waiver, in each case before and after giving effect thereto, except to the extent made as of a specific date (in which case such representations and warranties shall be true and correct in all material respects (or all respects, as applicable) as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&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) the execution, delivery and performance by Borrower of this Waiver are within Borrower's organizational powers and have been duly authorized by all necessary organizational action, and (i) do not require any consent or approval of, registration or filing with, or any action by, any governmental authority, except those as have been obtained or made and are in full force and effect and except for (A) filings to be made by Borrower with the Securities Exchange Commission, and (B) filings necessary to perfect or maintain perfection of the liens created under the Loan Documents, (ii) will not violate any requirement of law applicable to the Borrower or any judgment, order or ruling of any applicable governmental authority, (iii) will not violate or result in a default under any other material contract, agreement, or other instrument or obligation of Borrower or give rise to a right thereunder to require any payment to be made by the Borrower and (iv) will not result in the creation or imposition of any lien on any asset of the Borrower, except liens created under the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&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) this Waiver has been duly executed and delivered by Borrower, and constitutes a valid and binding obligation of such Borrower, enforceable against it in accordance with its terms except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general principles of equity; and

&nbsp;&nbsp;&nbsp;&nbsp;&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) on and as of the date hereof and immediately after giving effect to this Waiver and the waiver of the Specified Non-Compliances as set forth herein, no default or event of default will exist.

Section 4. <u>Conditions Precedent</u>. This Waiver shall be effective on the date on which all of the following conditions precedent shall have been satisfied in a manner acceptable to the Bank:

&nbsp;&nbsp;&nbsp;&nbsp;&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 Bank or its counsel shall have received this Waiver duly executed and delivered by each party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Bank shall have received such other information, documents, instruments or approvals as the Bank or its counsel may reasonably request.

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&nbsp;&nbsp;&nbsp;&nbsp;&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) Borrower shall pay all reasonable fees, out-of-pocket costs and expenses incurred in connection with the preparation, execution and delivery of this Waiver and the other instruments and documents to be delivered hereunder or in connection with the Credit Agreement with respect to the matters covered hereby, including, without limitation, the reasonable fees, charges and disbursements of counsel for the Bank with respect thereto and with respect to advising the Bank as to its rights and responsibilities hereunder and thereunder.

Section 5. <u>No Further Waivers; Ratification of Liability</u>. Except as expressly waived hereby, the Credit Agreement and each of the other Loan Documents shall remain in full force and effect in accordance with their respective terms. Bank and Borrower hereby ratify, confirm and reaffirm its respective liabilities, payment and performance obligations (contingent or otherwise) and agreements under the Credit Agreement and the other Loan Documents to which it is a party, and the liens and security interests granted, created and perfected thereby. This Waiver shall not constitute a modification of the Credit Agreement or a course of dealing with the Bank at variance with the Credit Agreement such as to require further notice by the Bank to require strict compliance with the terms of the Credit Agreement and the other Loan Documents in the future, except as expressly set forth herein. This Waiver contains the entire agreement among the Borrower and Bank contemplated by this Waiver. Borrower has no knowledge of any challenge to any of Bank's claims arising under the Loan Documents or the effectiveness of the Loan Documents. Except as expressly set forth in this Waiver the Bank reserves all rights, privileges and remedies under the Loan Documents.

Section 6. <u>No Novation</u>. Nothing in this Waiver is intended, or shall be construed, to constitute a novation or an accord and satisfaction of any of the obligations or to modify, affect or impair the perfection, priority or continuation of the security interests in, security titles to or other liens on any Collateral.

Section 7. <u>Release</u>. In consideration of the waivers contained herein, Borrower hereby waives and releases the Bank from any and all claims and defenses, known or unknown, existing on the date hereof with respect to the Credit Agreement and the other Loan Documents and the transactions contemplated thereby.

Section 8. <u>Further Assurances</u>. The Borrower agrees to take all further actions and execute such other documents and instruments as the Bank may from time to time reasonably request to carry out the transactions contemplated by this Waiver, the Loan Documents and all other agreements executed and delivered in connection herewith.

Section 9. <u>Governing Law</u>. This Waiver shall be governed by and construed in accordance with the laws of the State of Alabama.

Section 10. <u>Loan Document</u>. This Waiver shall be deemed to be a Loan Document for all purposes.

Section 11. <u>Counterparts</u>. This Waiver may be executed in any number of counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. Delivery of an executed counterpart to this Waiver by facsimile or other

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electronic method of transmission shall be as effective as delivery of a manually executed counterpart hereof.

Section 12. <u>Severability</u>. In case any provision of or obligation under this Waiver shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

Section 13. <u>Headings</u>. Headings and captions used in this Waiver are included for convenience of reference only and shall not be given any substantive effect.

[remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Limited Waiver to be duly executed as of the date first above written.

Bank:

**Bank of America, N.A**.

By: <u>/s/ Andy Martin</u> 

Name: Andy Martin

Its: Senior Vice President

Borrower:

**Lakeland Industries, Inc.**, a Delaware corporation

By: <u>/s/ Calven Swinea</u> (Seal)

Calven Swinea, Chief Financial Officer

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO<br>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, James M. Jenkins, certify that:

1)I have reviewed this report on Form 10-Q of Lakeland Industries, Inc. (the "registrant");

2)Based on my knowledge, this report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)Based on my knowledge, the financial statements and other financial information included in this report fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4)The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant, and we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: June 9, 2026

---

| | |
|:---|:---|
| By: | */s/ James M. Jenkins* |
| Chief Executive Officer, President and Executive Chairman | Chief Executive Officer, President and Executive Chairman |

---

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO<br>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, J. Calven Swinea, certify that:

1)I have reviewed this report on Form 10-Q of Lakeland Industries, Inc. (the "registrant");

2)Based on my knowledge, this report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)Based on my knowledge, the financial statements and other financial information included in this report fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4)The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant, and we have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: June 9, 2026

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| | |
|:---|:---|
| By: | */s/ J. Calven Swinea* |
| Chief Financial Officer and Secretary | Chief Financial Officer and Secretary |

---

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## Exhibit 32.1

**<u>Exhibit 32.1</u>**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

**Pursuant to 18 USC. § 1350, As Adopted Pursuant to**

**§ 906 of the Sarbanes-Oxley Act of 2002**

In connection with the filing with the Securities and Exchange Commission of the Quarterly Report of Lakeland Industries, Inc. (the "Company") on Form 10-Q for the period ended April 30, 2026 (the "Report"), I, James M. Jenkins, Chief Executive Officer, President and Executive Chairman of the Company, certify, pursuant to 18 USC. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods described therein.

---

| |
|:---|
| */s/ James M. Jenkins* |
| James M. Jenkins |
| Chief Executive Officer, President and Executive Chairman |
| June 9, 2026 |

---

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## Exhibit 32.2

**<u>Exhibit 32.2</u>**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

**Pursuant to 18 USC. § 1350, As Adopted Pursuant to**

**§ 906 of the Sarbanes-Oxley Act of 2002**

In connection with the filing with the Securities and Exchange Commission of the Quarterly Report of Lakeland Industries, Inc. (the "Company") on Form 10-Q for the period ended April 30, 2026 (the "Report"), I, J. Calven Swinea, Chief Financial Officer and Secretary of the Company, certify, pursuant to 18 USC. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods described therein.

---

| |
|:---|
| */s/ J. Calven Swinea* |
| J. Calven Swinea |
| Chief Financial Officer and Secretary |
| June 9, 2026 |

---

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