Document:

AMENDED AND RESTATED
REVOLVER NOTE

 

	U.S. $15,000,000	June 28, 2013
	 	 
	 	Atlanta, Georgia

 

FOR VALUE RECEIVED,
the undersigned, LAKELAND INDUSTRIES, INC., a Delaware corporation (“Lakeland US”), and LAKELAND PROTECTIVE
WEAR INC., a Canadian corporation (“Lakeland Canada”; Lakeland US and Lakeland Canada are sometimes referred
to herein individually as a “Borrower” and collectively as “Borrowers”), hereby jointly and
severally promise to pay to the order of ALOSTAR BANK OF COMMERCE, a state banking institution organized under the laws
of the State of Alabama (herein, together with any subsequent holder hereof, called “Lender”), the principal
sum of FIFTEEN MILLION AND NO/100 DOLLARS ($15,000,000) or such lesser sum as may constitute the outstanding principal amount of
all Revolver Loans made pursuant to the terms of the Loan Agreement (as defined below) on the date on which such outstanding principal
amounts become due and payable pursuant to Section 2.2(a)(i) of the Loan Agreement (as defined below), in strict accordance
with the terms thereof. Borrowers, jointly and severally, likewise unconditionally promise to pay to Lender interest from and after
the date hereof on the outstanding principal amount of Revolver Loans at such interest rates, payable at such times and computed
in such manner as are specified in Sections 2.2(a)(ii) and 2.3 of the Loan Agreement and in strict accordance with
the terms thereof.

 

This Amended and Restated
Revolver Note (“Note”) is issued pursuant to, and is the “Revolver Note” referred to in, the Loan
and Security Agreement dated on or about the date hereof (as the same may be amended, restated, supplemented or otherwise modified
from time to time, the “Loan Agreement”), among Borrowers and Lender, and Lender is and shall be entitled to
all benefits thereof and of all other Loan Documents executed and delivered in connection therewith. All capitalized terms used
herein, unless otherwise defined herein, shall have the meanings ascribed to such terms under the Loan Agreement.

 

The entire unpaid principal
balance and all accrued interest on this Note shall be due and payable immediately upon the Commitment Termination Date. All
payments of principal and interest shall be made in Dollars and in immediately available funds as specified in the Loan Agreement.

 

Upon or after the occurrence
of an Event of Default and for so long as such Event of Default exists, the principal balance and all accrued interest of this
Note may be declared (or shall become) due and payable in the manner and with the effect provided in the Loan Agreement, and the
unpaid principal balance hereof shall bear interest at the Default Rate as and when provided in Section 2.3 of the Loan
Agreement. If this Note is collected by or through an attorney at law, then Borrowers, jointly and severally, shall be obligated
to pay, in addition to the principal balance of and accrued interest on this Note, all costs of collection, including, without
limitation, reasonable attorneys’ fees and court costs.

 

All principal amounts
of Revolver Loans made by Lender to Borrowers pursuant to the Loan Agreement, and all accrued and unpaid interest thereon,
shall be deemed evidenced by this Note and shall continue to be owing by Borrowers until paid in accordance with the terms of this
Note and the Loan Agreement.

 

    	 

    	 

    

 

In no contingency or
event whatsoever, whether by reason of advancement of the proceeds of Revolver Loans or otherwise, shall the amount paid or agreed
to be paid to Lender for the use, forbearance or detention of Revolver Loans exceed the highest lawful rate permissible under any
law which a court of competent jurisdiction may deem applicable hereto; and, in the event of any such payment inadvertently paid
by Borrowers or inadvertently received by Lender, such excess sum shall be, at Borrowers’ option, returned to Borrowers forthwith
or credited as a payment of principal, but shall not be applied to the payment of interest. It is the intent hereof that Borrowers
not pay or contract to pay, and that Lender not receive or contract to receive, directly or indirectly in any manner whatsoever,
interest in excess of that which may be paid by Borrowers under applicable law.

 

Time is of the essence
of this Note. To the fullest extent permitted by applicable law, each Borrower, for itself and its legal representatives, successors
and assigns, expressly waives presentment, demand, protest, notice of dishonor, notice of non-payment, notice of maturity, notice
of protest, presentment for the purpose of accelerating maturity, diligence in collection, and the benefit of any exemption or
insolvency laws.

 

Wherever possible each
provision of this Note shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision
of this Note shall be prohibited or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition
or invalidity without invalidating the remainder of such provision or remaining provisions of this Note. No delay or failure on
the part of Lender in the exercise of any right or remedy hereunder shall operate as a waiver thereof, nor as an acquiescence in
any default, nor shall any single or partial exercise by Lender of any right or remedy preclude any other right or remedy. Lender,
at its option, may enforce its rights against any Collateral securing this Note without enforcing its rights against any Borrower,
any Guarantor of the indebtedness evidenced hereby or any other property or indebtedness due or to become due to any Borrower.
Each Borrower agrees that, without releasing or impairing such Borrower’s liability hereunder, Lender may at any time release,
surrender, substitute or exchange any Collateral securing this Note and may at any time release any party primarily or secondarily
liable for the indebtedness evidenced by this Note.

 

The rights of Lender
and obligations of Borrowers hereunder shall be construed in accordance with and governed by the laws (without giving effect to
the conflict of law principles thereof) of the State of Georgia. This Note is intended to take effect as an instrument under seal
under Georgia law.

To the fullest extent
permitted by applicable law, each Borrower and, by its acceptance hereof, Lender, each hereby waives the right to trial by jury
in any action, suit, proceeding or counterclaim of any kind arising out of, related to or based in any way upon this Note or any
of the matters contemplated hereby.

 

This Note replaces
and supersedes that certain Second Amended and Restated Revolving Credit Note dated as of October 17, 2012 in the principal amount
of $17,500,000 by Lakeland US in favor of Lender, as the assignee of TD Bank, N.A. (the “Prior Note”), but this
Note does not constitute a novation of the indebtedness evidenced by the Prior Note.

 

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left blank]

  

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IN WITNESS WHEREOF,
each Borrower has caused this Amended and Restated Revolver Note to be executed under seal and delivered by its duly authorized
officer on the date first above written.

 

	 	BORROWERS:
	 	 
	 	LAKELAND INDUSTRIES, INC.
	 	 	 
	 	By:	/s/ Christopher J. Ryan
	 	Name:	Christopher J. Ryan
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	[SEAL]
	 	 	 
	 	LAKELAND PROTECTIVE WEAR INC.
	 	 
	 	By:	/s/ Christopher J. Ryan
	 	Name:	Christopher J. Ryan
	 	Title:	Assistant Secretary
	 	 	 
	 	[SEAL]LOAN AND SECURITY
AGREEMENT

 

THIS LOAN AND SECURITY
AGREEMENT (together with all schedules, riders and exhibits annexed hereto from time to time, this “Agreement”)
is entered into this 28th day of June, 2013 among LKL INVESTMENTS, LLC, a Delaware limited liability company (“Lender”),
LAKELAND INDUSTRIES, INC., a Delaware corporation (“Lakeland US”), and LAKELAND PROTECTIVE WEAR INC.,
a Canadian corporation (“Lakeland Canada”; Lakeland US and Lakeland Canada are sometimes referred to herein
individually as a “Borrower” and collectively as “Borrowers”). All schedules, riders and
exhibits annexed hereto are incorporated herein and made a part hereof.

 

SECTION
1.   Definitions

 

1.1           Defined
Terms. When used in this Agreement or in any schedule or rider
hereto, the following terms shall have the following meanings (terms defined in the singular to have the same meaning when used
in the plural and vice versa):

 

“1933
Act” means the Securities Act of 1933, as amended, 15 U.S.C. Section 77a et seq.

 

“1934
Act” means the Securities Act of 1933, as amended, 15 U.S.C. Section 78a et seq.

 

“Account
Debtor” means a person obligated to pay an Account.

 

“Affiliate”
means a Person (a) which directly or indirectly through one or more intermediaries controls, or is controlled by, or is under
common control with, another Person; (b) which beneficially owns or holds 10% or more of any class of the Equity Interests
of a Person; or (c) 10% or more of the Equity Interests with power to vote of which is beneficially owned or held by another
Person or a Subsidiary of another Person. For purposes hereof, “control” means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of any
Equity Interest, by contract or otherwise. Notwithstanding the foregoing, under no circumstances shall Lender or any Affiliate
of Lender be deemed an Affiliate of any Obligor for the purposes of this Agreement.

 

“Anti-Terrorism
Laws” means any laws relating to terrorism or money laundering, including Executive Order No. 13224 and the USA PATRIOT
Act.

 

“Assignment
Event” means the assignment to Lender of Senior Lender’s interest in any Lien Waiver/Access Agreement pursuant
to the Senior Lender Subordination Agreement.

 

“Authorized
Officer” means each Senior Officer and each person identified in Item 1 of the Terms Schedule.

 

“Bankruptcy
Code” means Title 11 of the United States Code.

 

“Blocked
Person” has the meaning ascribed thereto in Section 7.16.

 

    	 

    	 

    

 

“Borrower
Agent” means Lakeland US in its capacity as agent for all Borrowers pursuant to Section 2.12.

 

“Borrower
Securities” means, collectively, the Warrants, the Warrant Shares, the Interest Shares, and any Notes.

 

“Borrowers’
Books” means all of each Borrower’s books and records relating to its existence, governance, assets, liabilities
or financial condition or any of the Collateral, including minute books; ledgers and records indicating, summarizing or evidencing
such Borrower’s assets or liabilities; all information relating to such Borrower’s business operations; and all computer
records, programs, discs or tape files, printouts, runs, and other information prepared or stored electronically, including the
equipment or any website or third party storage provider containing or hosting such information.

 

“Business
Day” means any day of the week, excluding Saturdays, Sundays, each day that is a legal holiday under the laws of the
State of New York.

 

“Canadian
Benefit Plans” means all plans, arrangements, agreements, programs, policies, practices or undertakings, whether oral
or written, formal or informal, funded or unfunded, insured or uninsured, registered or unregistered, to which a Borrower or any
of its Subsidiaries, with respect to employees based in Canada, is a party or bound or in which their employees participate or
under which a Borrower or any of its Subsidiaries has, or will have, any liability or contingent liability, or pursuant to which
payments are made, or benefits are provided to, or an entitlement to payments or benefits may arise with respect to, any of their
employees or former employees, their directors or officers, individuals working on contract with a Borrower or any of its Subsidiaries
or other individuals providing services to a Borrower or any of its Subsidiaries of a kind normally provided by employees (or any
spouses, dependants, survivors or beneficiaries of any such persons).

 

“Canadian
Pension Plans” means all Canadian Benefit Plans which are required to be registered under Canadian provincial or federal
pension benefits standards legislation.

 

“Canadian
Security Agreement” means the security agreement entered into by Lakeland Canada in favor of Lender dated on or about
the date hereof, as such agreement may be amended, restated, supplemented or otherwise modified from time to time.

 

“CFC”
has the meaning set forth in Section 4.1.

 

“Change
in Law” means the occurrence, after the date hereof, of (a) the adoption, enactment, taking effect or phasing in of any
law, rule, regulation or treaty; (b) any change in any law, rule, regulation or treaty or in the administration,
interpretation or application thereof; or (c) the making, issuance or application of any request, guideline, requirement or directive
(whether or not having the force of law) by any governmental authority. For the avoidance of doubt, “Change in Law”
shall include the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and
directions issued thereunder or in connection therewith or in implementation thereof regardless of the date enacted, adopted, issued
or implemented.

 

    	2

    	 

    

 

“Change
of Control” means that: (a) any Person or two or more Persons acting in concert (other than Permitted Holders), shall
have acquired beneficial ownership, directly or indirectly, of the Equity Interests of Lakeland US (or other securities convertible
into such Equity Interests) representing 35% or more of the combined voting power of all Equity Interests of Lakeland US entitled
(without regard to the occurrence of any contingency) to vote for the election of members of the board of directors of Lakeland
US; (b) without the prior written consent of Lender (which may not be unreasonably withheld), any Person or two or more Persons
acting in concert (other than Permitted Holders), shall have acquired by contract or otherwise, or shall have entered into a contract
or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly,
a controlling influence over the management or policies of Lakeland US or control over the Equity Interests of such Person entitled
to vote for members of the board of directors of Lakeland US on a fully-diluted basis (and taking into account all such Equity
Interests that such Person or group has the right to acquire pursuant to any option right) representing 35% or more of the combined
voting power of such Equity Interests; (c) during any period of 24 consecutive months commencing on or after the Closing Date,
the occurrence of a change in the composition of the board of directors of Lakeland US such that a majority of the members of such
board of directors are not Continuing Directors; or (d) Lakeland US fails to own and control, directly or indirectly, 100% of the
Equity Interests of each other Borrower and each other Obligor. In determining whether a Change of Control has occurred, the following
shall be disregarded: (i) the issuance of the Warrants; (ii) the issuance of any Warrant Shares; and (iii) the issuance of Interest
Shares in accordance with Section 2.8 hereof.

 

“Closing”
means the consummation of the transactions contemplated hereby including, but not limited to, the execution and delivery of the
Term Loan Documents and the issuance of the Warrants.

 

“Closing
Date” means the date of this Agreement.

 

“Collateral”
means all of the property and interests in property described in Section 4.1 of this Agreement, all property described
in the Mortgages and any of the other Security Documents as security for the payment or performance of any of the Obligations,
and all other property and interests in property that now or hereafter secure (or are intended to secure) the payment or performance
of any of the Obligations.

 

“Commitment”
means the commitment of the Lender to make the Term Loan.

 

“Common
Stock” means common stock of Lakeland US, par value $0.01 per share, and any share capital into which such Common Stock
shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

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“Compliance
Certificate” means a Compliance Certificate, in the form of Exhibit C attached hereto to Lender, with appropriate
insertions, to be submitted to Lender by Borrowers pursuant to this Agreement and certified as true and correct by a Senior Officer.

 

“Continuing
Director” means (a) any of Duane W. Albro, Christopher J. Ryan, Alfred John Kreft, Stephen M. Bachelder, Thomas McAteer,
Douglas B. Benedict, James M. Jenkins, which constitute the members of the board of directors of Lakeland US who are directors
of Lakeland US on the Closing Date, and the Lender Director, and (b) any individual who becomes a member of the board of directors
of Lakeland US after the Closing Date if such individual was approved, appointed or nominated for election to the board of directors
by either the Permitted Holders or a majority of the Continuing Directors, but excluding any such individual originally proposed
for election in opposition to the board of directors in office at the Closing Date in an actual or threatened election contest
relating to the election of the directors of Lakeland US and whose initial assumption of office resulted from such contest or the
settlement thereof.

 

“Convertible
Securities” has the meaning set forth in Section 7.19.

 

“Debt”
means, as applied to a Person, without duplication: (a) all items which in accordance with GAAP would be included in determining
total liabilities as shown on the liability side of a balance sheet of such Person as of the date as of which Debt is to be determined,
including capitalized lease obligations; (b) all contingent obligations of such Person; (c) all reimbursement obligations
in connection with letters of credit issued for the account of such Person; and (d) in the case of Borrowers (without duplication),
the Obligations. The Debt of a Person shall include any recourse Debt of any partnership or joint venture in which such Person
is a general partner or joint venturer.

 

“Debtor
Relief Laws” means the Bankruptcy Code, the Bankruptcy and Insolvency Act (Canada), the Companies' Creditors Arrangement
Act (Canada), and all other domestic or foreign liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, arrangement (including under any relevant incorporating statute), rearrangement, receivership, insolvency, reorganization,
judicial management, administration or relief of debtors or similar debtor relief applicable laws of the United States, Canada
or other applicable jurisdiction from time to time in effect and affecting the rights of creditors generally.

 

“Default”
means an event or condition the occurrence of which would, with the lapse of time or the giving of notice, or both, become an Event
of Default.

 

“Default
Rate” means the Interest Rate plus 300 basis points.

 

“Deposit
Account Control Agreement” means a deposit account control agreement among one or more Borrowers, Senior Lender and the
financial institution named therein, pursuant to which Senior Lender shall have obtained “control” (as contemplated
by Section 9-104 of the UCC or as defined in the Securities Transfer Act (Ontario), as applicable) of such Deposit Account.

 

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“Director
Indemnification Agreement” means an indemnification agreement in form and substance reasonably acceptable to Lender.

 

“Disbursement
Letter” means a written disbursement letter from Borrower Agent to Lender in form and substance satisfactory to Lender
in Lender’s discretion.

 

“Disclosure
Schedule” means the Disclosure Schedule annexed hereto.

 

“Distribution”
means, in respect of any entity, any payment of dividends or other distributions in respect of Equity Interests of the entity (except
distributions consisting of such Equity Interests).

 

“Dollars”
and “$” means lawful money of the United States of America.

 

“Early
Termination Fee” means a fee to be paid by Borrowers to Lender pursuant to Item 2 of the Terms Schedule.

 

“Environmental
Laws” means all federal, state, provincial, territorial, local and foreign laws, rules, regulations, codes, ordinances,
orders and consent decrees (together with all programs, permits and guidance documents promulgated by regulatory agencies, to the
extent having the force of law), now or hereafter in effect, that relate to public health (but excluding occupational safety and
health, to the extent regulated by OSHA) or the protection or pollution of the environment, whether now or hereafter in effect,
including the Comprehensive Environmental Response Compensation and Liability Act of 1980, the Superfund Amendments and Reauthorization
Act of 1986, the Clean Water Act, the Clean Air Act, the Toxic Substances Act, and the Resource Conservation and Recovery Act.

 

“Equity
Interest” means the interest of (a) a shareholder in a corporation, (b) a partner (whether general or limited)
in a partnership (whether general, limited or limited liability), (c) a member in a limited liability company, or (d) any
other Person having any other form of equity security or ownership interest.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974.

 

“Event
of Default” means the occurrence of any one of the events set forth in Section 10.

 

“Excess”
has the meaning set forth in Section 2.5.

 

“Exchange
Cap” has the meaning set forth in Section 2.8.

 

“Exchange
Cap Allocation” has the meaning set forth in Section 2.8.

 

“Exchange Rate”
means on any day with respect to any currency the rate at which such currency may be exchanged into any other currency as set forth
at approximately 11:00 a.m. (New York, New York time) on such day on the Reuters World Currency Page for such currency. In the
event that such rate does not appear on any Reuters World Currency Page, the Exchange Rate shall be determined by reference to
such other publicly available service for displaying exchange rates as Lender may reasonably select.

 

    	5

    	 

    

 

“Executive
Order No. 13224” means executive order no. 13224 effective September 24, 2001, as the same has been, or shall hereafter
be, renewed, extended, amended or replaced.

 

“Fees”
means all fees payable pursuant to Section 2.4(a).

 

“Fiscal
Quarter” means each three calendar month period ending on January 31, April 30, July 31, and October 31.

 

“Fiscal
Year” means the fiscal year of Borrowers and their Subsidiaries for accounting and tax purposes, which is described in
the Disclosure Schedule.

 

“Full
Payment” means the full, final and indefeasible payment in full of all of the Obligations and release by each Obligor
(and by any representative of creditors of such Obligor in any Insolvency Proceeding of such Obligor) of any claims that such Obligor
has or asserts to have against Lender or any of its Affiliates.

 

“GAAP”
means generally accepted accounting principles in the United States of America in effect from time to time.

 

“Guarantor”
means individually, and “Guarantors” means collectively, each Person who at any time guarantees the payment or performance
of any Obligations, including each Person listed on Item 3 of the Terms Schedule as a Guarantor.

 

“Guaranty”
means each guaranty agreement at any time executed by a Guarantor with respect to any of the Obligations.

 

“Indemnitees”
means Lender, each Affiliate of Lender, and all officers, directors, members, managers, partners, limited partners, employees,
advisors and agents (including legal counsel) of Lender and each Affiliate of Lender.

 

“Indemnified
Claim” means any and all claims, demands, liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
awards, remedial response costs, expenses or disbursements of any kind or nature whatsoever (including reasonable attorneys’,
accountants’, consultants’ or paralegals’ fees and expenses), whether arising under or in connection with any
of the Term Loan Documents, any applicable law (including any Environmental Laws) or otherwise, that may now or hereafter be suffered
or incurred by any Indemnitee and whether suffered or incurred in or as a result of any investigation, litigation, arbitration
or other judicial or non-judicial proceedings or any appeals related thereto.

 

“Insolvency
Proceeding” means any action, case or proceeding commenced by or against a Person under any state, federal or foreign
law (including any Debtor Relief Law), or any agreement of such Person, for (a) the entry of an order for relief under any
chapter of the Bankruptcy Code, any Debtor Relief Law or other insolvency or debt adjustment law (whether state, provincial, federal
or foreign), (b) the appointment of a receiver (or administrative receiver), trustee, liquidator administrator, conservator
or other custodian for such Person or any part of its property, (c) an assignment or trust mortgage for the benefit of
creditors of such Person, or (d) the liquidation, dissolution or winding up of the affairs of such Person.

 

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“Intellectual
Property” means any and all patents, copyrights, trademarks, trade dress, trade secrets, know-how, inventions (whether
or not patentable), algorithms, software programs (including source code and object code), processes, product designs, industrial
designs, blueprints, drawings, data, customer lists, uniform resource locators, web sites and domain names, specifications, documentations,
reports, catalogs, literature, and any other forms of technology or proprietary information of any kind, including all rights therein
and all applications for registration or registrations thereof.

 

“Interest”
has the meaning set forth in Section 2.5 for purposes of that section only.

 

“Interest
Payment Date” means the last day of each Fiscal Quarter.

 

“Interest
Rate” has the meaning given to it in Item 4 of the Terms Schedule.

 

“Interest
Shares” has the meaning set forth in Section 2.8.

 

“Interest
Stock Election” means the election by Lender to receive Interest Shares in lieu of the cash payment of interest on the
Term Loan described in Section 2.8.

 

“Interest
Stock Election Notice” means the notice described in Section 2.8(b).

 

“Internal
Revenue Code” means the Internal Revenue Code of 1986, Title 26 of the United States Code.

 

“Investor
Rights Agreement” means the investor rights agreement in the form annexed hereto as Exhibit E.

 

“Lakeland
Argentina” means Lakeland Argentina, SRL.

 

“Lakeland
Brazil” means Lakeland Brazil, S.A., a Brazilian corporation formerly known as Qualytextil, S.A.

 

“Lakeland
Brazil Cash Collateral” means cash collateral provided by one or more Borrowers to Senior Lender from time to time in
connection with certain liabilities of Lakeland Brazil for which one or more Borrowers may also be liable.

 

“Lakeland
Brazil Cash Collateral Account” means a deposit account maintained with Senior Lender with respect to the Lakeland Brazil
Cash Collateral.

 

“Lakeland
Mexico” means Industrias Lakeland S.A. de C.V., a Mexican Societad Anonima de Capital Variable.

 

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“Lender
Director” means such natural Person as Lender shall from time to time designate as a member of the Board of Directors
of Lakeland US.

 

“Lender
Expenses” means all of the following: (a) Taxes and insurance premiums required to be paid by Borrowers under this Agreement
or any of the other Term Loan Documents which are paid or advanced by Lender; (b) filing, recording, publication and search
fees paid or incurred by Lender, including all recording taxes and indebtedness taxes; (c) title insurance premiums and document
recording charges in connection with the Mexican Mortgage, as well as any other mortgages contemplated by this Agreement; (d) the
costs, fees (including reasonable attorneys’ and paralegals’ fees) and expenses incurred by Lender (i) to inspect,
copy, audit or examine any Borrower or any of Borrowers’ Books or inspect, verify, count or appraise any Collateral; (ii) to
correct any Default or enforce any provision of any of the Term Loan Documents, whether or not litigation is commenced; (iii) in
gaining possession of, maintaining, handling, preserving, insuring, storing, shipping, preparing for sale, advertising for sale,
selling or foreclosing a Lien upon any of the Collateral, whether or not a sale is consummated; (iv) in collecting any Accounts
or Payment Intangibles or recovering any of the Obligations; (v) in structuring, drafting, reviewing, implementing or preparing
any of the Term Loan Documents and any amendment, modification or waiver of this Agreement or any of the other Term Loan Documents;
(vi)  in defending the validity, priority or enforceability of Lender’s Liens; and (vii) in monitoring or seeking
any relief in any Insolvency Proceeding involving an Obligor; and (e) all other costs and expenses incurred by Lender and described
in Section 2.4(b).

 

“Lien”
means any interest in property securing an obligation owed to, or a claim by, a Person other than the owner of the property, whether
such interest is based on common law, statute or contract, including any hypothec, hypothecation, deed of trust, deemed trust,
deposit arrangement, consignment or bailment for security purposes. The term “Lien” shall also include reservations,
exceptions, encroachments, easements, rights-of-way, covenants, conditions, restrictions, leases and other title exceptions and
encumbrances affecting property. For the purpose hereof, each Borrower shall be deemed to be the owner of any property which it
has acquired or holds subject to a conditional sale agreement or other arrangement pursuant to which title to the property has
been retained by or vested in some other Person for security purposes.

 

“Lien
Waiver/Access Agreement” means an agreement in favor of Senior Lender (or in favor of Lender in the event Senior Lender
waives the requirement that such agreement be furnished to it) providing for the waiver or subordination of Liens from any lessor,
mortgagee, warehouse operator, processor, customs broker, carrier, or other Person that may have lienholders’ enforcement
rights with respect to any Collateral, by which such Person shall waive or subordinate its Liens and claims with respect to any
Collateral in favor of Senior Lender’s (or Lender’s, as the case may be) Liens and shall assure Senior Lender’s
(or Lender’s as the case may be) access to any Collateral in such Person’s possession for the purpose of allowing Senior
Lender (or Lender, as the case may be) to enforce its rights and Liens with respect to such Collateral. In the event said agreement
is in favor of Senior Lender and arises after the Closing Date, Borrowers shall use commercially reasonable efforts to cause said
agreement to provide, inter alia, that it may be unconditionally assigned to Lender.

 

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“Margin
Stock” has the meaning ascribed to it in Regulation U of the Board of Governors of the Federal Reserve System.

 

“Market
Value” means, with respect to Common Stock, the average closing price per share thereof on the Principal Market for the
twenty (20) trading days most recently preceding the date on which an Interest Stock Election Notice is delivered pursuant to Section
2.8 and upon which a purchase and sale of Common Stock was made on the Principal Market.

 

“Material
Agreement” means any agreement, instrument or arrangement to which any Borrower or any Subsidiary is a party for which
default in the performance, observance or fulfillment of any of the material obligations, covenants or conditions contained therein
could reasonably be expected to have a Material Adverse Effect.

 

“Material
Adverse Effect” means the effect of any event, condition, action, omission or circumstance, which, alone or when taken
together with other events, conditions, actions, omissions or circumstances occurring or existing concurrently therewith, (a) has,
or with the passage of time could be reasonably expected to have, a material adverse effect upon the business, operations, properties
or condition (financial or otherwise) of Obligors, taken as a whole; (b) has or could be reasonably expected to have any material
adverse effect upon the validity or enforceability of this Agreement or any of the other Term Loan Documents; (c) has any
material adverse effect upon the value of the whole or any material part of the Collateral, the Liens of Lender with respect to
the Collateral or the priority of any such Liens; (d) materially impairs the ability of any Obligor to perform its obligations
under this Agreement or any of the other Term Loan Documents, including repayment of any of the Obligations when due; or (e) materially
impairs the ability of Lender to enforce or collect the Obligations or realize upon the Collateral in accordance with the Term
Loan Documents or applicable law.

 

“Maturity
Date” means the date that is the sooner to occur of (a) June 28, 2018 and (b) the date the Term Loan becomes due pursuant
to acceleration following an Event of Default.

 

“Mexican
Mortgage” means a mortgage, deed of trust or similar instrument effective under the laws of Mexico to create a lien upon
and security interest in favor of Lender in all right, title and interest of Lakeland Mexico in the real property known as [Address].

 

“Money
Borrowed” means, as applied to any Obligor, without duplication: (a) Debt arising from the lending of money by any
other Person to such Obligor; (b) Debt, whether or not in any such case arising from the lending of money by another Person
to such Obligor, (i) which is represented by notes payable or drafts accepted that evidence extensions of credit, (ii) which constitutes
obligations evidenced by bonds, debentures, notes or similar instruments, or (iii) upon which interest charges are customarily
paid (other than accounts payable) or that was issued or assumed as full or partial payment for property; (c) Debt under a lease
that is required to be capitalized for financial reporting purposes in accordance with GAAP; (d) reimbursement obligations with
respect to letters of credit or guarantees relating thereto; and (e) Debt of such Obligor under any guaranty of obligations that
would constitute Debt for Money Borrowed under clauses (a) through (d) hereof, if owed directly by such Obligor.

 

    	9

    	 

    

 

“Mortgage”
means a mortgage, deed of trust or deed to secure debt by a Borrower or any other Obligor in favor of Lender which secures all
or any part of the Obligations, and specifically includes, but is not limited to, the Mexican Mortgage.

 

“Multiemployer
Plan” shall have the meaning set forth in Section 4001(a)(3) of ERISA.

 

“Note”
means a promissory note executed by one or more Borrowers at Lender’s request to evidence any of the Obligations, including
the Term Note.

 

“Obligations”
means all Debts, liabilities, obligations, covenants, and duties at any time or times owing by one or more Borrowers to Lender
of any kind and description, whether incurred pursuant to or evidenced by any of the Term Loan Documents or pursuant to any other
agreement between Lender and one or more Borrowers or otherwise, and whether direct or indirect, absolute or contingent, due or
to become due, or joint or several, including the principal of and interest on the Term Loan (including, without limitation, all
PIK Interest that has been added to the principal amount of the Term Loan as a consequence of a PIK Election), all Fees, all obligations
of each Borrower under any indemnification of Lender, and all Lender Expenses. Without limiting the generality of the foregoing,
the term “Obligations” shall include all Debts, liabilities and obligations incurred by each Borrower to Lender in
any bankruptcy case of any Borrower and any interest, fees or other charges accrued in any such bankruptcy case, whether or not
any such interest, fees or other charges are recoverable from any Borrower or its estate under 11 U.S.C. §506.

 

“Obligor”
means each Borrower, each Guarantor, and each other Person that is at any time liable for the payment of the whole or any part
of the Obligations or that has granted in favor of Lender a Lien upon any of such Person’s assets to secure payment
of any of the Obligations.

 

“Options”
has the meaning set forth in Section 7.19.

 

“Ordinary
Course of Business” means, with respect to any transaction involving any Person, the ordinary course of such Person’s
business, as conducted by such Person in accordance with past practices and undertaken by such Person in good faith and not
for the purpose of evading any covenant or restriction in any Term Loan Document.

 

“Organic
Documents” means, with respect to any entity, its charter, certificate or articles of incorporation, bylaws, articles
of organization, limited liability agreement, operating agreement, members agreement, shareholders agreement, partnership agreement,
certificate of partnership, certificate of formation, voting trust, or similar agreement or instrument governing the formation
or operation of such Person.

 

    	10

    	 

    

 

“OSHA”
means the Occupational Safety and Hazard Act of 1970.

 

“Permitted
Asset Disposition” means a sale, lease, license, consignment or other transfer or disposition of assets (real or personal,
tangible or intangible) of a Borrower or a Subsidiary, including a disposition of property of a Borrower or a Subsidiary in connection
with a sale-leaseback transaction or synthetic lease, in each case only if such disposition (a) consists of the sale of Inventory
of such Borrower or Subsidiary in the Ordinary Course of Business of such Borrower or Subsidiary; (b) is a disposition of Equipment
permitted by the Senior Lender Loan Agreement (which shall, for purposes of this definition, include Subsidiaries as if
they were Borrowers); (c) arises solely from a termination of a lease of real or personal property that is not necessary in an
Obligor’s Ordinary Course of Business, could not reasonably be expected to have a Material Adverse Effect and does not result
from such Obligor’s default or failure to perform under such lease, or (d) sale of the assets of Lakeland Brazil, the assets
of QingDao Lakeland Protective Products, Co., Ltd., and the assets held for sale in India, in any such case on terms and conditions
reasonably acceptable to Lender.

 

“Permitted
Holder” means each of Christopher J. Ryan, Stephen M. Bachelder, Duane W. Albro, Alfred John Kreft, Thomas McAteer, James
M. Jenkins, Douglas B. Benedict, Gary Pokrassa, and Charles D. Roberson.

 

“Permitted
Indebtedness” means the Obligations, the Senior Indebtedness (it being agreed that, unless otherwise expressly permitted
by the Senior Lender Subordination Agreement, the aggregate outstanding principal amount owing by Borrowers to Senior Lender shall
not exceed the Maximum Senior Creditor Obligations Amount (as such term is defined in the Senior Lender Subordination Agreement),
Subordinated Debt existing on the Closing Date or incurred after the Closing Date on terms acceptable to Lender in its reasonable
discretion, Debt of Lakeland Brazil in an amount not exceeding $5,500,000, accounts payable to trade creditors incurred in the
Ordinary Course of Business, purchase money obligations secured by Liens that are Permitted Liens, Debt identified on the Disclosure
Schedule, and Debt for accrued payroll, Taxes and other operating expenses incurred in the Ordinary Course of Business so long
as payment thereof is not past due and payable unless, in the case of Taxes, such Taxes are being Properly Contested.

 

    	11

    	 

    

 

“Permitted
Lien” means any of the following: (a) Liens at any time granted in favor of Lender; (b) Liens for Taxes (excluding any
Lien imposed pursuant to the provisions of ERISA) not yet due or being Properly Contested; (c) statutory Liens (excluding any Lien
for Taxes) arising in the Ordinary Course of Business of a Borrower or a Subsidiary, but only if and for so long as payment in
respect of such Liens is not at the time required or the Debt secured by any such Liens is being Properly Contested and such Liens
do not materially detract from the value of the property of such Borrower or such Subsidiary and do not materially impair the use
thereof in the operation of such Borrower’s or such Subsidiary’s business; (d) purchase money Liens securing Debt incurred
for the purchase of fixed assets, provided that such Liens are confined to the property so acquired and secure only the Debt incurred
to acquire such property, and provided further that the aggregate amount of Capital Expenditures during any Fiscal Year does not
exceed the amount set forth in Item 7(c) of the Terms Schedule; (e) Liens arising from the rendition, entry or issuance
against any Borrower or any Subsidiary, or any property of any Borrower or any Subsidiary, of any judgment, writ, order, or decree
for so long as each such Lien is in existence for less than 30 consecutive days after it first arises or the judgment is being
Properly Contested and is at all times junior in priority to any Liens in favor of Lender; (f) normal and customary rights of setoff
upon deposits of cash in favor of banks and other depository institutions and Liens of a collecting bank arising under the UCC
on payment items in the course of collections; (g) Liens in existence immediately prior to the Closing Date that are satisfied
in full and released on the Closing Date as a result of the application of Borrowers’ cash on hand at the Closing Date or
the proceeds of the Term Loan or Revolving Loans made on the Closing Date; (h) so long as the Senior Lender Subordination Agreement
remains in full force and effect, Liens in favor of Senior Lender; (i) liens on amounts deposited in the Ordinary Course of Business
in connection with workers’ compensation, unemployment insurance, social security and other similar laws; and (j) such other
Liens as appear on the Disclosure Schedule, to the extent provided therein.

  

“Person”
means an individual, partnership, corporation, limited liability company, limited liability partnership, joint stock company, land
trust, business trust, or unincorporated organization, or a governmental authority.

 

“PIK
Election” means the election by Lender to receive PIK Interest in lieu of the cash payment of interest as described in
Section 2.7.

 

“PIK
Election Notice” has the meaning set forth in Section 2.7(b).

 

“PIK
Interest” has the meaning set forth in Section 2.7.

 

“Plan”
means an employee pension benefit plan that is covered by Title IV of ERISA or subject to the minimum funding standards under Section
412 of the Internal Revenue Code and that is either (a) maintained by a Borrower for employees or (b) maintained pursuant
to a collective bargaining agreement or any other arrangement under which more than one employer makes contributions and to which
a Borrower is then making or accruing an obligation to make contributions or has within the preceding 5 years made or accrued such
contributions.

 

“PPSA”
means the Personal Property Security Act (Ontario), the Civil Code of Québec or any other applicable Canadian federal, provincial
or territorial statute pertaining to the granting, perfecting, priority or ranking of security interests, liens, hypothecs on personal
property, and any successor statutes, together with any regulations thereunder, in each case as in effect from time to time. References
to sections of the PPSA shall be construed to also refer to any successor sections.

 

“Principal
Market” means the Nasdaq Global Market.

 

    	12

    	 

    

 

“Properly
Contested” means, in the case of any Debt of an Obligor (including any Taxes) that is not paid as and when due or payable
by reason of such Obligor’s bona fide dispute concerning its liability to pay same or concerning the amount thereof, (a) such
Debt is being properly contested in good faith by appropriate proceedings promptly instituted and diligently conducted; (b) such
Obligor has established appropriate reserves as shall be required in conformity with GAAP; (c) the non-payment of such Debt
will not have a Material Adverse Effect and will not result in a forfeiture or sale of any assets of such Obligor; (d) no
Lien is imposed upon any of such Obligor’s assets with respect to such Debt unless such Lien is at all times junior and subordinate
in priority to the Liens in favor of Lender (except only with respect to property taxes that have priority as a matter of
applicable state law) and enforcement of such Lien is stayed during the period prior to the final resolution or disposition of
such dispute; (e) if the Debt results from, or is determined by the entry, rendition or issuance against an Obligor or any of its
assets of a judgment, writ, order or decree, enforcement of such judgment, writ, order or decree is at all times stayed pending
a timely appeal or other judicial review; and (f) if such contest is abandoned, settled or determined adversely (in whole
or in part) to such Obligor, such Obligor forthwith pays such Debt and all penalties, interest and other amounts due in connection
therewith.

 

“Registration
Rights Agreement” means the registration rights agreement in the form annexed hereto as Exhibit D.

 

“Regulation
D” means Regulation D promulgated by the SEC under the 1933 Act.

 

“Reporting
Period” has the meaning set forth in Section 8.13.

 

“Restricted
Investment” has the meaning set forth in Section 9.9.

 

“Revolving
Loans” means loans made by Senior Lender to any of the Borrowers pursuant to the Senior Lender Loan Agreement.

 

“Schedules”
means the Terms Schedule and the Disclosure Schedule.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“SEC
Documents” has the meaning set forth in Section 7.29.

 

“Security
Documents” means each instrument or agreement now or at any time hereafter securing or assuring payment of the whole
or any part of the Obligations, including the Canadian Security Agreement, and each Mortgage, Guaranty, Deposit Account Control
Agreement, and Stock Pledge Agreement.

 

“Senior
Indebtedness” means indebtedness incurred by Borrowers under the Senior Lender Loan Agreement.

 

“Senior
Lender” means AloStar Bank of Commerce, a state banking institution incorporated or otherwise organized under the laws
of the State of Alabama.

 

    	13

    	 

    

 

“Senior
Lender Loan Agreement” means that certain Loan and Security Agreement dated as of June 28, 2013 by and among the Borrowers,
as borrowers, and Senior Lender, as lender.

 

“Senior
Lender Subordination Agreement” means that certain Subordination and Intercreditor Agreement dated on or about the date
hereof among Borrowers, Lender and Senior Lender.

 

“Senior
Lender Loan Documents” means the Senior Lender Loan Agreement, together with each note, guaranty, security agreement,
pledge agreement, mortgage, deed of trust and all other agreements, documents, and instruments executed and/or delivered in connection
with such Senior Lender Loan Agreement from time to time.

 

“Senior
Officer” means, on any date, any person occupying any of the following positions with any Borrower: the chairman of the
board of directors, president, chief executive officer, chief financial officer, treasurer or secretary of such Borrower.

 

“Solvent”
means, as to any Person, such Person (a) owns property whose fair salable value is greater than the amount required to pay
all of such Person’s debts (including contingent, subordinated, unmatured and unliquidated liabilities), (b) owns property
whose present fair salable value (as defined below) is greater than the probable total liabilities (including contingent, subordinated,
unmatured and unliquidated liabilities) of such Person as they become absolute and matured, (c) is able to pay all of its
debts as such debts mature, (d) has capital that is not unreasonably small for its business and is sufficient to carry on
its business and transactions and all business and transactions in which it is about to engage, (e) is not “insolvent”
within the meaning of Section 101(32) of the Bankruptcy Code or an “insolvent person” within the meaning of Section
1 of the Bankruptcy and Insolvency Act (Canada), and (f) has not incurred (by way of assumption or otherwise) any obligations
or liabilities (contingent or otherwise) under any of the Term Loan Documents, or made any conveyance pursuant to or in connection
therewith, with actual intent to hinder, delay or defraud either present or future creditors of such Person or any of its Subsidiaries.
As used herein, the term “fair salable value” of a Person’s assets means the amount that may be realized within
a reasonable time, either through collection or sale of such assets at the regular market value, based upon the amount that could
be obtained for such assets within such period by a capable and diligent seller from an interested buyer who is willing (but is
under no compulsion) to purchase under ordinary selling conditions. All rights of subrogation, contribution and indemnity of Laidlaw,
Adams & Peck, Inc. shall be considered in determining such whether such Person is Solvent.

 

“Southern
Mills” has the meaning set forth in Section 7.20(a).

 

“Stock
Pledge Agreement” means any stock pledge agreement or similar agreement by any Borrower or any Subsidiary in favor of
Lender in which any Equity Interests are pledged as security for all or any part of the Obligations.

 

    	14

    	 

    

 

“Subordinated
Debt” means all Debt owed by a Borrower to any Person other than Senior Lender, the repayment of which is subordinated
to the repayment of the Obligations pursuant to the terms of a debt subordination agreement approved in writing by Lender in its
discretion.

 

“Subsidiary”
means any Person in which 50% or more of all Equity Interests (or 50% of all Equity Interests having a power to vote) is owned,
directly or indirectly, by a Borrower, one or more other Subsidiaries of a Borrower or a Borrower and one or more other Subsidiaries.

 

“Taxes”
means any present or future taxes, levies, imposts, duties, fees, assessments, deductions, withholdings or other charges of whatever
nature, including, without limitation, income, receipts, excise, property, capital, large corporations, sales, use, goods and services,
harmonized sales, transfer, land transfer, license, payroll, withholding, social security and franchise taxes now or hereafter
imposed or levied by the United States or any other governmental authority and all interest, penalties, additions to tax and
similar liabilities with respect thereto, but excluding, in the case of Lender, taxes imposed on or measured by the net income
or overall gross receipts of Lender or its Affiliates.

 

“Term
Loan Register” has the meaning set forth in Section 2.9.

 

“Term
Loan” means a single term loan in the original principal amount of $3,500,000 made in accordance with the terms and conditions
of this Agreement.

 

“Term
Loan Documents” means, collectively, this Agreement, the Term Note, the Security Documents, the Senior Lender Subordination
Agreement, the Warrants, the Registration Rights Agreement, the Investor Rights Agreement, the Director Indemnification Agreement,
and any other agreements entered into between Lender and any Obligor in connection with this Agreement or to evidence or govern
the terms of any of the Obligations, mortgages, deeds of trust, guaranties, assignments, pledge agreements, subordination agreements,
and any and all other documents, agreements, certificates and instruments executed and/or delivered by any Obligor pursuant hereto
or in connection herewith.

 

“Term
Note” means a promissory note made by the Borrowers in favor of Lender evidencing the Term Loan made by Lender, substantially
in the form of Exhibit A.

 

“Terms
Schedule” means the Terms Schedule annexed hereto.

 

“UCC”
means the Uniform Commercial Code (or any successor statute) as adopted and in force in the State of New York from time to time
or, when the laws of any other state govern the method or manner of the perfection or enforcement of any security interest
in any of the Collateral, the Uniform Commercial Code (or any successor statute) of such state.

 

“US Dollar Equivalent”
means, at any time, (a) as to any amount denominated in Dollars, the amount thereof at such time, and (b) as to any amount denominated
in any other currency, the equivalent amount in Dollars based on the Exchange Rate in effect on the Business Day of determination.

 

    	15

    	 

    

 

“USA
PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001).

 

“Warrants”
means warrants to purchase Common Stock in the form annexed hereto as Exhibit B.

 

“Warrant
Shares” means Common Stock issued or issuable upon exercise of the Warrants.

 

1.2           UCC
Terms. All other capitalized terms contained in this Agreement
and not otherwise defined herein shall have, when the context so indicates, the meanings provided for by the UCC (or the PPSA,
as applicable) to the extent the same are used or defined therein. Without limiting the generality of the foregoing, the following
terms shall have the meaning ascribed to them in the UCC (or PPSA, as applicable): Accessions, Account, Chattel Paper, Commercial
Tort Claim, Deposit Account, Document, Electronic Chattel Paper, Equipment, Fixtures, Goods, General Intangible, Instrument, Inventory,
Investment Property, Letter-of-Credit Right, Payment Intangible, Proceeds, Securities, Securities Account, Software and Supporting
Obligation.

 

1.3           Accounting
Terms. Unless otherwise specified herein, all terms of an accounting
nature used in this Agreement shall be interpreted, all accounting determinations under this Agreement shall be made, and all financial
statements required to be delivered under this Agreement shall be prepared in accordance with GAAP, applied on a basis consistent
with the most recent audited financial statements of Borrowers and their Subsidiaries delivered to Lender prior to the Closing
Date and using same method for inventory valuation as used in such audited financial statements, except for any changes required
by GAAP.

 

1.4           Certain
Matters of Construction. The terms “herein,” “hereof”
and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section,
paragraph or subdivision. Any pronoun used shall be deemed to cover all genders. The section titles and list of exhibits appear
as a matter of convenience only and shall not affect the interpretation of this Agreement. All references to statutes shall include
all amendments of same and implementing regulations and any amendments of same and any successor statutes and regulations; all
references to any instrument, agreement or other documents (including any of the Term Loan Documents) shall include all modifications
and supplements thereto and all restatements, extensions or renewals thereof to the extent such modifications, supplements, restatements,
extensions or renewals of any such documents are permitted by the terms thereof and not prohibited by the terms of this Agreement;
all references to any Person (including each Borrower or Lender) shall mean and include the successors and permitted assigns of
such Person; all references to “including” and “include” shall be understood to mean “including,
without limitation”; and all references to the time of day shall mean the time of day on the day in question in New York,
New York, unless otherwise expressly provided in this Agreement. A Default or an Event of Default shall be deemed to exist at all
times during the period commencing on the date that such Default or Event of Default first occurs to the date on which such Default
or Event of Default is waived in writing pursuant to this Agreement or, in the case of a Default, is cured within any period of
cure expressly provided in this Agreement; and an Event of Default shall “continue” or be “continuing”
until such Event of Default has been waived by Lender in writing. All calculations of value shall be in Dollars, the Term Loan
shall be funded in Dollars and all Obligations shall be repaid in Dollars. Whenever in any provision of this Agreement Lender is
authorized to take or decline to take any action (including making any determination) in the exercise of its “discretion,”
such provision shall be understood to mean that Lender may take or refrain to take such action in its sole and absolute discretion.
Whenever the phrase “to the best of Borrowers’ knowledge” or words of similar import relating to the knowledge
or the awareness of one or more Borrowers are used in this Agreement or other Term Loan Documents, such phrase shall mean and refer
to (i) the actual knowledge of a Senior Officer of any Borrower or (ii) the knowledge that a Senior Officer would have obtained
if he had engaged in good faith and diligent performance of his duties, including the making of such reasonably specific inquiries
as may be necessary of the officers, employee or agents of any Borrower and a good faith attempt to ascertain the existence or
accuracy of the matter to which such phrase relates.

 

    	16

    	 

    

 

SECTION 2.       THE
TERM LOAN AND TERMS OF REPAYMENT

 

2.1         The
Term Loan.

  

(a)          Subject
to all of the terms and conditions in this Agreement and provided that no Default or Event of Default shall have occurred, Lender
agrees to make the Term Loan to Borrowers on the Closing Date. The Term Loan shall be paid or prepaid, as the case may be, in accordance
with this Section 2; provided that, to the extent paid or prepaid, said Term Loan may not be reborrowed. Except in connection
with the mandatory repayment of the Term Loan pursuant to Section 2.2(a)(i)(A) hereof, the term Loan may be prepaid in whole
but not in part.

 

(b)          The
proceeds of the Term Loan shall be used by Borrowers solely for one or more of the following purposes: (i) for ordinary working
capital purposes; (ii) to pay the Fees and transaction expenses associated with the closing of the transaction described herein;
and (iii) to repay Revolving Loans.

 

(c)          In
no event may any Term Loan proceeds be used to purchase or to carry, or to reduce, retire or refinance any Debt incurred to purchase
or carry, any Margin Stock or for any related purpose that violates the provisions of Regulations T, U or X of the Board of Governors
of the Federal Reserve System.

 

(d)          Each
Borrower irrevocably authorizes Lender to disburse the proceeds of the Term Loan in accordance with the terms of the Disbursement
Letter.

 

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2.2           Payments.  (a)
     All payments with respect to any of the Obligations shall be made to Lender in immediately available
funds, without any offset or counterclaim. The Obligations shall be due and payable as follows:

 

(i)          Subject
to the Senior Lender Subordination Agreement, principal payable on account of the Term Loan shall be payable by Borrowers, jointly
and severally, to Lender immediately upon the earliest of (A) the receipt by Lender or any Borrower of any proceeds of any of the
Collateral, to the extent of such proceeds, (B) the occurrence of an Event of Default in consequence of which the maturity and
payment of the Obligations are accelerated, and (C) the Maturity Date.

 

(ii)         Interest
accrued on the principal balance of the Term Loan (including any additional principal resulting from a PIK Election) shall be due
and payable as follows: (A) in arrears, on each Interest Payment Date for the preceding Fiscal Quarter; (B) immediately
upon the occurrence of an Event of Default in consequence of which the maturity and payment of the Obligations are accelerated;
and (C) the Maturity Date.

 

(iii)        The
balance of the Obligations requiring the payment of money, if any, shall be payable by Borrowers, jointly and severally, to Lender
as and when provided in the Term Loan Documents, or, if the date of payment is otherwise not specified in the Term Loan Documents,
on demand.

 

(iv)        Subject
to the Senior Lender Subordination Agreement, on or after June 28, 2014 and upon not less than five (5) Business Days’ prior
written notice to Lender, the Borrowers may repay principal in increments of $500,000 provided that no event of default under the
Senior Loan Documents shall exist immediately following such prepayment. All sums received on account of this Section 2.2(a)(iv)
shall be applied first, to any unpaid fees and expenses due under this Agreement, next, to accrued and unpaid interest, and then
to principal.

 

(b)          Whenever
any payment of any of the Obligations shall be due on a day that is not a Business Day, the date for payment thereof shall be extended
to the next succeeding Business Day and, if the day for any payment of principal is extended by operation of law or otherwise,
interest thereon shall be payable for such extended period of time.

 

(c)          To
the extent that any Borrower makes a payment to Lender, or Lender receives payment from the proceeds of any Collateral or exercises
its right of setoff (if any), and such payment or the proceeds of such Collateral or setoff (or any part thereof) are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other
Person, then to the extent of any loss of Lender, the Obligations or part thereof originally intended to be satisfied, and all
Liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such payment or proceeds have
not been made or received and any such enforcement or setoff had not occurred. The provisions hereof shall survive the Maturity
Date and Full Payment of the Obligations.

 

    	18

    	 

    

 

2.3           Interest
Rate.  

 

The Term Loan shall bear interest at the Interest Rate; provided, however, that upon and after the occurrence
of an Event of Default and during the continuation thereof, the Term Loan shall bear interest equal to the lesser of (i) the
Default Rate and (ii) the highest rate allowed by applicable law. All interest chargeable under this Agreement shall be computed
on the basis of the actual number of days elapsed in a year of 360 days. For the purposes of this Agreement, whenever interest
is calculated on the basis of a period which is less than the actual number of days in a calendar year, each rate of interest
determined pursuant to such calculation is, for the purposes of the Interest Act (Canada), equivalent to such rate multiplied
by the actual number of days in the calendar year in which such rate is to be ascertained and divided by the number of days used
as the basis of such calculation.

 

 Fees and
Reimbursement of Expenses.

  

(a)          Borrowers
shall pay to Lender the Fees set forth in Item 5 of the Terms Schedule and shall reimburse Lender for all reasonable costs
and expenses incurred in connection with examinations of Borrowers’ Books and appraisals of the Collateral and such other
matters as Lender shall deem reasonable and appropriate, as set forth in Item 5 of the Terms Schedule.

 

(b)          If,
at any time or times regardless of whether or not any Event of Default then exists, Lender incurs out-of-pocket legal or accounting
expenses or any other out-of-pocket costs or expenses in connection with the transactions contemplated hereby, including fees and
expenses incurred in connection with: (i) the negotiation and preparation of any amendment of or modification of this Agreement
or any of the other Term Loan Documents or documents evidencing or otherwise relating to any workout, restructuring or forbearance
with respect to any Term Loan Documents or any Obligations; (ii) the administration of this Agreement or any of the Term Loan
Documents and the transactions contemplated hereby and thereby; (iii) any litigation, contest, dispute, suit, proceeding (including
any Insolvency Proceeding) or action (whether instituted by Lender, any Borrower or any other Person) in any way relating to the
Collateral, this Agreement or any or the other Term Loan Documents or one or more Borrowers; or (iv) any attempt to enforce
any rights of Lender against any Borrower or any other Person which may be obligated to Lender by virtue of this Agreement or any
of the other Term Loan Documents, including any Obligor; or (v) any consultations regarding any Term Loan Documents or preparation
thereof, or financing extended thereunder; then all such reasonable legal and accounting expenses, other reasonable costs and out-of-pocket
expenses of Lender shall be charged to Borrowers, shall be Obligations secured by all of the Collateral, shall be payable to Lender
on demand, and shall bear interest from the date such demand is made until paid in full at the rate applicable to Revolving Loans
from time to time. Notwithstanding the foregoing, Borrowers shall not be obligated to reimburse Lender for costs and expenses incurred
in connection with actions by Lender which a court of competent jurisdiction determines in a valid, final, non-appealable judgment
to constitute gross negligence or willful misconduct of Lender.

 

    	19

    	 

    

 

(c)          All
Fees shall be fully earned by Lender when due and payable and, except as otherwise set forth herein or required by applicable law,
shall not be subject to rebate, refund or proration. All Fees provided for in this Section 2.4 are and shall be deemed to
be for compensation for services and are not, and shall not be deemed to be, interest or any other charge for the use, forbearance
or detention of money.

 

2.6           Maximum
Interest.  Regardless of any provision contained in this Agreement or any other Term Loan Document, in no contingency
or event whatsoever shall the aggregate of all amounts that are contracted for, charged or received by Lender pursuant to the
terms of this Agreement or any other Term Loan Document and that are deemed interest under applicable law exceed the highest rate
permissible under any applicable law (including resulting in an amount or at a rate that would result in the receipt by Lender
of interest at a criminal rate, as the terms “interest” and “criminal rate” are defined under the Criminal
Code (Canada)), which a court of competent jurisdiction shall, in a final determination, deem applicable hereto. No agreements,
conditions, provisions or stipulations contained in any of the Term Loan Documents or the exercise by Lender of the right to accelerate
the payment or the maturity of all or any portion of the Obligations or the exercise of any option whatsoever contained in any
of the Term Loan Documents, or the prepayment by any Borrower of any of the Obligations, or the occurrence of any contingency
whatsoever, shall entitle Lender to charge or receive, in any event, interest or charges, amounts, premiums or fees deemed interest
by applicable law (such interest, charges, amounts, premiums and fees referred to collectively as “Interest”)
in excess of the maximum rate allowable under applicable law and in no event shall any Obligor be obligated to pay Interest exceeding
such maximum rate, and all agreements, conditions, or stipulations, if any, which may in any event or contingency whatsoever operate
to bind, obligate or compel any Obligor to pay Interest exceeding the maximum rate allowable under applicable law shall be without
binding force or effect, at law or in equity, to the extent only of the excess of Interest over such maximum rate. If any Interest
is charged or received in excess of the maximum rate allowable under applicable law (“Excess”), each Borrower
acknowledges and stipulates that any such charge or receipt shall be the result of an accident and bona fide error, and such Excess,
to the extent received, shall be applied first to reduce the principal Obligations and the balance, if any, returned to Borrowers,
it being the intent of the parties hereto not to enter into a usurious or other illegal relationship. The right to accelerate
the maturity of the Obligations does not include the right to accelerate any interest that has not otherwise accrued on the date
of such acceleration, and Lender does not intend to collect any unearned interest in the event of any such acceleration. For the
purpose of determining whether or not any Excess has been contracted for, charged or received by Lender, all Interest at any time
contracted for, charged or received from Borrowers in connection with any of the Term Loan Documents shall, to the extent permitted
by applicable law, be amortized, prorated, allocated and spread in equal parts throughout the full term of the Obligations. The
provisions of this Section shall be deemed to be incorporated into every Term Loan Document (whether or not any provision of this
Section is referred to therein).

 

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2.6           [Intentionally
Omitted].

 

2.7           PIK
Election.    (a)        Upon delivery [or deemed delivery]
of a PIK Election Notice pursuant to Section 2.7(b) below, Lender shall have the right to elect, from time to time, to
receive all (but not less than all) of the accrued but unpaid interest on the Term Loan due and payable on the next succeeding
Interest Payment Date by capitalizing said accrued and unpaid interest and adding the same to the principal amount of the Term
Loan (such capitalized interest, the “PIK Interest”). Notwithstanding such right of election by Lender in the
preceding sentence, until the first anniversary of the Closing Date, all interest shall either be capitalized as contemplated
by this Section 2.7 or paid in Interest Shares as contemplated by Section 2.8.

 

(b)          A
PIK Election shall be made by Lender delivering a notice (a “PIK Election Notice”) to the Borrower Agent not
less than two (2) Business Days prior to the Interest Payment Date to which the PIK Election relates; provided however that no
such PIK Election Notice shall be required for, but rather shall be deemed to have been delivered in respect of, all interest on
the Term Loan accrued during the first twelve (12) months following the Closing Date (unless an Interest Stock Election Notice
has been delivered instead for the applicable period).

 

(c)          When
elected, PIK Interest shall be evidenced by Lender registering an increase in the principal amount of the Term Loan in the Term
Loan Register in an aggregate principal amount equal to such PIK Interest (rounded up to the nearest whole Dollar) payable on the
Term Loan on the applicable Interest Payment Date. Lender shall be entitled to PIK Interest payable on the Term Loan, whether or
not the increase in the principal amount of the Term Loan has been so recorded in the Term Loan Register, to the extent such amount
has not been paid to Lender in cash or in Interest Shares as of any Interest Payment Date. Following an increase in the principal
amount of the Term Loan as a result of the capitalization of PIK Interest, the Term Loan will bear interest on such increased principal
amount from and after the date of the capitalization of PIK Interest as otherwise set forth in Section 2.3.

 

(d)          Lender,
shall have the right, by delivering written notice to the Borrower Agent at any time prior to the Interest Payment Date, to withdraw
any PIK Election made after the first anniversary of the Closing DAte, whereupon the Borrowers shall be obliged to pay in cash
the interest on the Term Note in respect of which the PIK Election was made within two (2) Business Days after said revocation.

 

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(e)          Promptly
upon Lender’s request from time to time, Borrowers shall execute and deliver to Lender a Term Note which sets forth the principal
amount of the Term Loan after taking account of all prior PIK Elections. Lender shall, simultaneously with the delivery of said
Term Note, cancel any previously issued and outstanding Term Note.

 

(f)          No
PIK Election shall be made (or deemed made) after the Maturity Date, or after acceleration of the Term Loan following the occurrence
of an Event of Default.

 

2.8        Interest
Stock Election.     (a)          Upon delivery of an Interest Stock Election
Notice pursuant to Section 2.8(b) below, Lender shall have the right to elect, from time to time, to receive all (but not
less than all) of the accrued but unpaid interest on the Term Loan due and payable on the next succeeding Interest Payment Date
in duly authorized, validly issued, fully paid and nonassessable Common Stock (such Common Stock, the “Interest Shares”).
The payment of interest in the form of issuance and delivery to lender of such Interest Shares shall be evidenced by appropriate
notations in the Term Loan Register.

 

(b)          An
Interest Stock Election shall be made by Lender delivering a notice (an “Interest Stock Election Notice”) to
the Borrower Agent not less than two (2) Business Days prior to the Interest Payment Date to which the Interest Stock Election
relates, but in no event more than ten (10) Business Days prior to said Interest Payment Date.

 

(c)          Lender
shall have the right, by delivering written notice to the Borrower Agent at any time prior to the Interest Payment Date, to withdraw
the Interest Stock Election, whereupon the Borrowers shall be obliged to pay in cash the interest on the Term Loan in respect of
which the Interest Stock Election was made within two (2) Business Days after said revocation.

 

(d)          The
number of Interest Shares deliverable by Borrower Agent to Lender pursuant to the exercise of an Interest Stock Election Notice
shall be equal to the quotient of (i) the amount of interest due and payable on the applicable Interest Payment Date divided by
(ii) the Market Value of one share of Common Stock, said quotient rounded up to the next highest number of whole shares of Common
Stock.

 

(e)          An
Interest Stock Election Notice pertaining to interest due and payable on any Interest Payment Date may not be given if a PIK Election
Notice pertaining to interest due and payable on that Interest Payment Date has been given and not timely revoked.

 

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(f)          Notwithstanding
anything to the contrary contained in this Section 2.8, in order to comply with the rules and regulations of the Principal
Market, and regardless of whether or not the Common Stock is traded on the Principal Market, the Company shall not
issue any Interest Shares pursuant to this Agreement if the issuance of such shares of Common Stock would,
when added to the aggregate number of shares of Common Stock previously issued upon the exercise of the Warrants and as
Interest Shares pursuant to this Agreement, exceed in the aggregate 1,068,506 shares of Common Stock (appropriately adjusted for
any stock split, reverse stock split, stock dividend or other reclassification or combination of the Common Stock occurring after
the Closing Date) (the “Exchange Cap”).    Until such stockholder approval is obtained, Lender
shall not be issued in the aggregate, upon exercise of Warrants or as payment of Interest Shares, shares of Common Stock in an
amount greater than the product of the Exchange Cap multiplied by a fraction, (x) the numerator of which is the number of
shares of Common Stock underlying the Warrants issued to it pursuant to this Agreement on the Closing Date and (y) the denominator
of which is the aggregate number of shares of Common Stock underlying the Warrants issued to the purchasers thereof pursuant to
this Agreement on the Closing Date (the “Exchange Cap Allocation”).  In the event that any purchaser of
Warrants shall sell or otherwise transfer any of such purchaser’s Warrants, the transferee, if a registered holder of such
Warrants, shall be allocated a pro rata portion of such purchaser’s Exchange Cap Allocation, and the restrictions of the
prior sentence shall apply to such transferee with respect to the portion of the Exchange Cap Allocation allocated to such transferee. 
In the event that any holder of Warrants shall exercise all of such holder’s Warrants into a number of shares of Common Stock
which, in the aggregate, is less than such holder's Exchange Cap Allocation, then the difference between such holder’s Exchange
Cap Allocation and the number of shares of Common Stock actually issued to such holder shall be allocated to the respective Exchange
Cap Allocations of the remaining registered holders of Warrants on a pro rata basis in proportion to the aggregate number of shares
of Common Stock underlying the Warrants then held by each such holder.  To the extent required by the Principal Market, the
provisions of the Exchange Cap shall be modified to comply with the applicable rules and regulations of the Principal Market, provided
that any such changes shall not, in Lender’s reasonable discretion, materially change the terms of the transactions contemplated
hereby.

 

2.9           Application
of Payments and Collections. Lender shall maintain a register (the “Term Loan Register”) evidencing
the Term Loan, including the amount of principal and interest payable to Lender from time to time hereunder. Any failure of Lender
to make an entry in the Term Loan Register, or any error in doing so, shall not limit or otherwise affect the obligation of Borrowers
under the Term Loan Documents to pay any amount owing to Lender. The entries made in the Term Loan Register shall constitute rebuttably
presumptive evidence of the information contained therein, provided that if a copy of information contained in the Term Loan Register
is provided to any Borrower or any other Obligor, or any Borrower or any other Obligor inspects the Term Loan Register, at any
time or from time to time, then the information contained in the Term Loan Register shall be conclusive and binding on such Person
for all purposes, absent manifest error, unless such Person notifies Lender in writing within 30 days after such Person’s
receipt of such copy or such Person’s inspection of the Term Loan Register of its intention to dispute the information contained
therein. Upon the request of Lender, the Borrowers shall execute and deliver to Lender a Term Note, which shall evidence the Term
Loan in addition to such accounts or records. Upon receipt of an affidavit of Lender as to the loss, theft, destruction or mutilation
of the Term Note and upon cancellation of such Term Note, the Borrowers will issue, in lieu thereof, a replacement Term Note in
favor of Lender, in the same principal amount thereof and otherwise of like tenor.

 

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2.10         Capital
Requirements. If either (a) the introduction of, or any Change in Law or the interpretation thereof or (b) compliance
with any guideline or request from any central bank or comparable agency or other governmental authority (whether or not having
the force of law), has or would have the effect of reducing the rate of return on the capital of, or has affected or would affect
the amount of capital required to be maintained by, Lender as a consequence of, or with reference to, the credit facility hereunder,
below the rate which Lender could have achieved but for such introduction, change or compliance, then within 5 Business Days after
written demand by Lender, Borrowers shall pay Lender from time to time as specified by Lender additional amounts sufficient to
compensate Lender for such reduction. A certificate as to such amounts submitted to any Borrower by Lender shall, in the absence
of manifest error, be presumed to be correct and binding for all purposes.

 

2.11         Increased
Costs.  If any Change in Law shall: (a) impose, modify or deem applicable any reserve, special deposit,
compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended
or participated in by, Lender, (b) subject Lender to any Tax (whether directly or as a result of any withholding or deduction
by a Borrower) with respect to any Term Loan or Term Loan Document or any payment in respect thereof or change the basis of taxation
of payments to Lender in respect thereof, or (c) impose on Lender any other condition, cost or expense affecting any Term
Loan or Term Loan Document, and the result thereof shall be to increase the cost to Lender of making or maintaining any Term Loan
(or of maintaining its obligation to make any such Term Loan), or to reduce the amount of any sum received or receivable by Lender
hereunder (whether of principal, interest or any other amount) then, upon request by Lender, Borrowers will pay to Lender such
additional amount or amounts as will compensate Lender for such additional costs incurred or reduction suffered.

 

2.12         Borrower
Agent. Lakeland US shall be deemed to constitute the “Borrower Agent” and, in that capacity, shall be
authorized to act for and on behalf of each other Borrower, including for the purpose of receiving proceeds of the Term Loan and
other extensions of credit for and on behalf of each other Borrower; and the Term Loan or any other extension of credit funded
to or at the direction of Borrower Agent shall be deemed made to and on behalf of all Borrowers.

 

2.13         Joint
and Several Liability. Each Borrower shall be jointly and severally liable with each other Borrower for the payment
and performance of all of the Obligations; shall be deemed to have separately made the representations and warranties set forth
herein; shall be responsible jointly and severally with each other Borrower for all of the indemnities set forth in any of the
Term Loan Documents; shall be responsible for discharging the covenants contained in each of the Term Loan Documents applicable
to it; and shall be deemed separately to have granted (and does hereby grant), as security for the payment of the Obligations,
a security interest in the types and items of its property constituting Collateral. Lender shall have the right to deal with any
Authorized Officer of any Borrower with regard to all matters concerning the rights and obligations of Lender and the duties and
liabilities of one or more Borrowers under the Term Loan Documents. All actions or inactions of the Authorized Officers and agents
of any Borrower with regard to the transactions contemplated under any of the Term Loan Documents shall be deemed to be binding
upon all Borrowers hereunder. The Term Loan or any other extensions of credit made to one Borrower shall be deemed to have been
made to and for the benefit of all Borrowers, it being understood that Borrowers’ businesses are a mutual and collective
enterprise, and Borrowers believe that the consolidation of the Term Loan under this Agreement will enhance the aggregate borrowing
powers of each Borrower and ease the administration of their loan relationship with Lender, all to the mutual advantage of each
Borrower. Notwithstanding the appointment of Lakeland US to serve as Borrower Agent, each Borrower hereby appoints each other
Borrower as its true and lawful attorney-in-fact, with full right and power, for purposes of exercising all rights of such appointing
Borrower hereunder and under applicable law with regard to the transactions contemplated under the Term Loan Documents. Notwithstanding
any other provision contained herein or in any other Term Loan Document, if a “secured creditor” (as that term is
defined under the Bankruptcy and Insolvency Act (Canada)) is determined by a court of competent jurisdiction not to include
a Person to whom obligations are owed on a joint or joint and several basis, then the Obligations of Lakeland Canada, shall be
several obligations and not joint or joint and several obligations.

 

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2.14        Unconditional
Nature of Liabilities. Borrowers’ joint and several liability with respect to the Term Loan and other
Obligations shall, to the fullest extent permitted by applicable law, be unconditional irrespective of (a) the validity,
enforceability, avoidance or subordination of any of the Obligations or of any document evidencing or securing any part of
the Obligations, (b) the absence of any attempt to collect any of the Obligations from any other Obligor or any Collateral or
other security therefor, or the absence of any other action to enforce the same, (c) the waiver, consent, extension,
forbearance or granting of any indulgence by Lender with respect to any Term Loan Documents, (d) the failure by Lender to
take any steps to perfect or maintain the perfected status of its security interest in or Lien upon, or to preserve its right
to, any of the Collateral or Lender’s release of any Collateral or its termination or release of any Liens upon any
Collateral, (e) the release or compromise, in whole or in part, of the liability of any Obligor for the payment of any of the
Obligations, (f) any amendment or modification of any of the Term Loan Documents or any waiver of a Default or Event of
Default, (g) any increase in the amount of the Obligations beyond any limits imposed herein or any increase or decrease in
the amount of any interest, fees or other charges payable in connection therewith, or (h) any other circumstances that might
constitute a legal or equitable discharge or defense of any Obligor. Each Borrower shall be deemed to have waived any
provision under applicable law that might otherwise require Lender to pursue or exhaust its remedies against any Collateral
or Obligor before pursuing any Borrower or any other Obligor. Each Borrower consents that Lender shall be under no obligation
to marshal any assets in favor of any Obligor or against or in payment of any or all of the Obligations.

 

2.15        Subordination. Each
Borrower subordinates any claims, including any right of payment, subrogation, contribution and indemnity, that it may have
from or against any other Obligor, and any successor or assign of the Obligor, including any trustee, receiver or
debtor-in-possession, howsoever arising, due or owing or whether heretofore, now or hereafter existing, to the full and final
payment of all of the Obligations.

 

    	25

    	 

    

 

2.16       Waivers. Each
Borrower hereby waives each of the following to the fullest extent permitted by law:

 

(a)           any
defense based upon:

 

(i)          the
lack of authority of a Borrower;

 

(ii)         the
unenforceability, invalidity, illegality or extinguishment of all or any part of the Obligations, or any security or other guarantee
for the Obligations or any failure of Lender to take proper care or act in a commercially reasonable manner in respect of any security
for the Obligations or any collateral subject to the security, including in respect of any disposition of the Collateral or any
set-off of a Borrower’s bank deposits against the Obligations; or

 

(iii)        any
act or omission of a Borrower or any other person, including Lender, that directly or indirectly results in the discharge or release
of a Borrower or any other Person or any of the Obligations or any security for the Obligations;

 

(b)          any
right (whether now or hereafter existing) to require Lender, as a condition to the enforcement of all or any part of the Obligations:

 

(i)          to
accelerate the Obligations or proceed and exhaust any recourse against a Borrower or any other Person;

 

(ii)         to
realize on any security that it holds;

 

(iii)        to
marshal the assets of either a Borrower or any other Obligor; or

 

(iv)        to
pursue any other remedy that such Obligor may not be able to pursue itself and that might limit or reduce such Obligor’s
burden;

 

(c)          presentment,
demand, protest and notice of any kind including, without limitation, notices of default and notice of acceptance of a guarantee;

 

(d)          any
claims, set-off or other rights that such Borrower may have against Lender, whether or not related to the transactions contemplated
by this Agreement or any other Term Loan Document;

 

(e)          all
suretyship defenses and rights of every nature otherwise available under Ontario or Canadian law and the laws of any other jurisdiction,
including the benefit of discussion and of division; and

 

(f)          all
other rights and defences (legal or equitable) the assertion or exercise of which would in any way diminish the liability of such
Borrower under a guarantee.

 

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2.17        Continuing
Nature of Obligations. Any Obligation hereunder or under any other Term Loan Document:

 

(a)           shall
not be determined or affected, or Lender’s rights under this Agreement or any other Term Loan Document prejudiced by, the
termination, compromise, reduction, extinguishment or disallowance of any of the Obligations by operation of law or otherwise,
including without limitation, the bankruptcy, insolvency, winding-up, liquidation or dissolution of a Borrower or any change in
the name, business, powers, capital structure, constitution, objects, organization, directors or management of a Borrower, with
respect to transactions occurring either before or after such change; and

 

(b)           shall,
without limiting any restriction on any :

 

(i)          bind
the Person or Persons for the time being and from time to time carrying on the business now carried on by the Obligor, notwithstanding
any reorganization of the such Obligor or the amalgamation of such Obligor with one or more other corporations;

 

(ii)         extend
to the liabilities of the Person or Persons for the time being and from time to time carrying on the business now carried on by
Borrowers notwithstanding any reorganization or merger of a Borrower or the amalgamation of a Borrower with one or more other corporations
and all of such liabilities shall be included in the Obligations; and

 

(iii)        be
unaffected by the manner in which the Lender may now or subsequently deal with the Borrowers or any other Obligor or any security
(or any collateral subject to the security) or guarantee in respect of the Obligations.

 

SECTION 3.      TERM
AND TERMINATION; MATURITY DATE

 

3.1         Term
of Commitment. The Commitment shall, subject to the satisfaction (or waiver by Lender in its discretion) of each
condition set forth in Section 4 hereof, become effective on the date of this Agreement and shall expire at the close
of business on the Closing Date.

 

3.2           Maturity
Date. On the Maturity Date, the Term Loan and all other Obligations (including any Early Termination Fee) shall
become immediately due and payable without notice to or demand upon any Borrower and shall be paid to Lender in cash or by a
wire transfer of immediately available funds. The maturity of the Term Loan and the other Obligations shall not in any way
adversely affect any of Lender’s rights or remedies hereunder, any of any Borrower’s duties or obligations
hereunder (including each Borrower’s obligation to pay all of the Obligations (including any Early Termination Fee) on
maturity) or any Liens held by Lender.

 

    	27

    	 

    

 

SECTION 4.         CREATION
OF SECURITY INTEREST

 

4.1           Grant
of Security Interest. To secure the prompt payment and performance of all of the Obligations (but subject to the last
paragraph of this Section 4.1), each Borrower hereby grants to Lender a continuing security interest in and Lien upon
all personal property of such Borrower, including all of the following property and interests in property of such Borrower,
whether now owned or existing or hereafter created, acquired or arising and wheresoever located: all Accounts; all Goods,
including all Inventory and Equipment (including Fixtures); all Instruments; all Chattel Paper; all Documents (including
bills of lading); all General Intangibles, including Intellectual Property, Payment Intangibles and Software; all Deposit
Accounts; all Investment Property (including all Securities and Securities Accounts, but excluding any Securities that
constitute Margin Stock unless otherwise expressly provided in any Security Document and, in the case of Securities in a
Subsidiary organized under a law other than a state of the United States or the District of Columbia, limited to 65% of such
Securities); all Letter-of-Credit Rights; all Supporting Obligations; all Commercial Tort Claims; all monies now or at any
time or times hereafter in the possession or under the control of Lender (including, without limitation, the Lakeland Brazil
Cash Collateral, the Lakeland Brazil Cash Collateral Account, and all right, title and interest of each Borrower with respect
to each of the foregoing); all Accessions to, substitutions for and replacements, products and cash and non-cash Proceeds of
any of the foregoing, including Proceeds of and unearned premiums with respect to insurance policies insuring any of the
Collateral and claims against any Person for loss of, damage to or destruction of any of the Collateral; and all of
Borrowers’ Books.

 

Notwithstanding
anything contained in this Agreement to the contrary, Lender shall not have a security interest in voting Equity Interests of any
controlled foreign corporation (as that term is defined in the Internal Revenue Code (a “CFC”)), solely to the
extent that (a) such Equity Interests represent more than 65% of the outstanding voting Equity Interests of such CFC (provided,
however, that Lender shall have a security interest in 100% of the Equity Interests of Lakeland Canada), and (b) pledging or hypothecating
more than 65% of the total outstanding voting Equity Interests of such CFC would result in material adverse tax consequences; provided,
that, the foregoing exclusion shall in no way be construed to limit, impair, or otherwise affect any of Lender’s continuing
security interests in and liens upon any rights or interests of any Borrower in or to (i) monies due or to become due under or
in connection with any described contract, lease, permit, license, license agreement, or Equity Interest (including any Accounts
or Equity Interests), or (ii) any proceeds from the sale, license, lease, or other dispositions of any such contract, lease, permit,
license, license agreement, or Equity Interest).

 

Notwithstanding
anything in this Agreement, any Mortgage or any other Security Document to the contrary, the security interests and other Liens
in favor of Lender granted pursuant to this Agreement, the Mortgages and the other Security Documents shall not secure any Obligations
or other liabilities of any Borrower arising under or in connection with any Warrant, the Registration Rights Agreement, the Investor
Rights Agreement or the Director Indemnification Agreement.

 

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4.2           Other
Collateral; Setoff. Lender shall have, in addition to Liens upon the property of each Borrower described in Section
4.1, Liens upon all other property of each Borrower and each other Person as described in the Security Documents.
All sums at any time standing to each Borrower’s credit balance on Lender’s books and all of each
Borrower’s property at any time in Lender’s possession, or upon or in which Lender has a lien or security
interest shall be security for all Obligations. In addition to and not in limitation of the above, with respect to any
deposits of property of each Borrower in Lender’s possession or control, now or in the future, Lender shall have the
right to set off all or any portion thereof, at any time, against any Obligations, even if unmatured, without prior notice or
demand to any Borrower.

 

4.3           Continuation
of Security Interest.  Notwithstanding termination of Lender’s commitment to make the Term Loan hereunder, until
all Obligations, contingent or otherwise, have been fully repaid and performed, Lender shall retain its security interest in
all presently owned and hereafter arising or acquired Collateral, and Borrowers shall continue to immediately deliver to
Lender, in kind, all collections received respecting the Accounts and other Collateral.

 

4.4           Perfection
of Security Interest.  Promptly after Lender’s request therefor, each Borrower shall execute or cause
to be executed and delivered to Lender such instruments, assignments, title certificates or other documents as are necessary under
the UCC or other applicable law (including any motor vehicle certificates of title act) to perfect (or continue the perfection
of) Lender’s Liens upon the Collateral and shall take such other action as may be requested by Lender to give effect to
or carry out the intent and purposes of this Agreement. Unless prohibited by applicable law, each Borrower hereby irrevocably
authorizes Lender to execute and file in any jurisdiction any financing statement or amendment thereto on such Borrower’s
behalf, including financing statements that indicate the Collateral (i) as all assets or all personal property of such Borrower
or words to similar effect or (ii) as being of equal or lesser scope, or with greater or lesser detail, than as set forth
in this Section 4. Each Borrower also hereby ratifies its authorization for Lender to have filed in any jurisdiction
any like financing statement or amendment thereto if filed prior to the date hereof.

 

4.5           Access
to Borrowers’ Books and Computer Records. Lender and its agents shall have the right to conduct inspections, verifications
(of accounts and otherwise), appraisals, and field examinations of the Collateral and each Borrower’s other property and
books and records at any time or times hereafter, during such Borrower’s usual business hours, or during the usual business
hours of any Obligor having control over any Collateral or the records of any Borrower, and with such frequency as Lender may
request from time to time, with (a) when no Default or Event of Default is in existence, reasonable notice thereof and (b) when
any Default or Event of Default is in existence, no notice thereof, and Borrowers shall provide Lender access to any such information
stored online, together with access to any computer programs, hardware and software used by any Borrower to compile, analyze or
otherwise manipulate such information. Borrowers shall pay the cost of such inspections, verifications, appraisals, and field
examinations in accordance with Item 5 of the Terms Schedule. Each Borrower shall, at its expense, conduct physical inventories
of its and its Subsidiaries’ Inventory with such frequency as Lender shall reasonably request from time to time and, before
conducting any such physical inventory, shall provide reasonable written notice thereof to Lender and allow Lender or its agents
to witness such physical inventory.

 

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4.6          Power
of Attorney.  Each Borrower hereby irrevocably makes, constitutes and appoints Lender (and any of Lender’s
officers, employees or agents designated by Lender) as such Borrower’s true and lawful attorney with power:

 

(a)          To
sign the name of such Borrower on any of the documents described in Section 4.4 or on any other similar documents that need
to be executed, recorded and/or filed in order to perfect or continue perfected Lender’s Liens upon any of the Collateral,
if such Borrower fails or refuses to comply, or delays in complying, with its undertakings contained in Section 4.4;

 

(b)          To
endorse such Borrower’s name on any checks, notes, acceptances, money orders, drafts or other forms of payment or security
that may come into Lender’s possession;

 

(c)          To
sign such Borrower’s name on drafts against Account Debtors, on schedules and assignments of Accounts, on notices to Account
Debtors and on any invoice or bill of lading relating to any Account;

 

(d)          While
an Event of Default exists, to do all things necessary to carry out this Agreement;

 

(e)          While
an Event of Default exists, to notify the post office authorities to change the address for delivery of such Borrower’s mail
to any address designated by Lender, to receive and open all mail addressed to such Borrower, and to retain all mail relating to
the Collateral; and

 

(f)          To
send requests for verification of Accounts, and to contact Account Debtors in any other manner in order to verify the Accounts.

 

The appointment
of Lender as each Borrower’s attorney and each and every one of Lender’s rights and powers, being coupled with an interest,
are irrevocable so long as any Accounts in which Lender has a security interest remain unpaid or unfinished, as the case may be,
and until all of the Obligations have been fully paid and performed. Each Borrower ratifies and approves all acts of the attorney.
Neither Lender nor its employees, officers, or agents shall be liable for any acts or omissions or for any error in judgment or
mistake of fact or law made in good faith except for gross negligence or willful misconduct.

 

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4.7         Commercial
Tort Claims.  Each Borrower shall promptly notify Lender in writing upon such Borrower’s obtaining a Commercial
Tort Claim after the Closing Date against any Person and, upon Lender’s written request, promptly enter into an amendment
to this Agreement (or any of the other Term Loan Documents) and do such other acts or things deemed appropriate by Lender to confer
upon Lender a security interest in each such Commercial Tort Claim.

 

4.8         Senior
Lender Subordination Agreement. The rights granted to Lender pursuant to this Agreement shall be subject to the terms and
conditions set forth in the Senior Lender Subordination Agreement.

 

SECTION 5.       COLLATERAL
ADMINISTRATION

 

5.1         General
Provisions.

  

(a)           All
tangible items of Collateral, other than Inventory in transit, shall at all times be kept by Borrowers at one or more of the business
locations of Borrowers set forth in the Disclosure Schedule and shall not be moved therefrom, without the prior written approval
of Lender, except that in the absence of an Event of Default and acceleration of the maturity of the Obligations in consequence
thereof, Borrowers may (i) make sales or other dispositions of any Collateral to the extent not prohibited by Section 9.2
hereof and (ii) move Inventory or Equipment or any record relating to any Collateral to a location in the United States or
Canada other than those shown on the Disclosure Schedule so long as Borrowers have given Lender at least 30 days’ prior written
notice of such new location. Notwithstanding anything to the contrary contained in this Agreement, no Borrower shall be permitted
to keep, store or otherwise maintain any Collateral at any location, unless (i) a Borrower is the owner of such location, (ii) a
Borrower leases such location and the landlord has executed in favor of Senior Lender a Lien Waiver/Access Agreement (or, if Senior
Lender has waived said requirement, the applicable Borrower, if requested by Lender, shall have undertaken commercially reasonable
efforts to cause to be executed and delivered in favor of Lender a Lien Waiver/Access Agreement in form and substance acceptable
to Lender), or (iii) the Collateral consists of Inventory placed with a warehouseman, bailee or processor, Senior Lender has
received from such warehouseman, bailee or processor an acceptable Lien Waiver/Access Agreement (or, if Senior Lender has
waived said requirement, the applicable Borrower, if requested by Lender, shall have undertaken commercially reasonable efforts
to cause to be executed and delivered in favor of Lender a Lien Waiver/Access Agreement in form and substance acceptable to Lender).

 

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(b)          Borrowers
shall maintain and pay for insurance upon all Collateral (including personal property and marine cargo coverage), wherever located,
covering casualty, hazard, public liability, theft, malicious mischief, and such other risks in such amounts and with such insurance
companies as are reasonably satisfactory to Lender. The Disclosure Schedule describes all property insurance of Borrowers in effect
on the date hereof. All proceeds payable under each such policy shall be payable to Senior Lender and Lender for application to
the Obligations in accordance with the Senior Lender Subordination Agreement and, after an Assignment Event, to Lender. Borrowers
shall deliver the originals or certified copies of such policies to Lender with satisfactory lender’s loss payable endorsements
reasonably satisfactory to Lender naming Lender as a lender loss payee, assignee or additional insured, as appropriate. Each policy
of insurance or endorsement shall contain a clause requiring the insurer to give not less than 30 days prior written notice to
Lender in the event of cancellation of the policy for any reason whatsoever and a clause specifying that the interest of Lender
shall not be impaired or invalidated by any act or neglect of any Borrower or the owner of the property or by the occupation of
the premises for purposes more hazardous than are permitted by said policy. If Borrowers fail to provide and pay for such insurance,
Lender may, at its option, but shall not be required to, procure the same and charge Borrowers therefor. Each Borrower agrees
to deliver to Lender, promptly as rendered, true copies of all reports made in any reporting forms to insurance companies. For
so long as no Event of Default exists, Borrowers shall have the right to settle, adjust and compromise any claim with respect to
any insurance maintained by Borrowers, provided that all proceeds thereof are applied in the manner specified in this Agreement,
and Lender agrees promptly to provide any necessary endorsement to any checks or drafts issued in payment of any such claim. At
any time that an Event of Default exists, Lender shall, subject to restrictions, if any, in the Senior Lender Subordination Agreement,
be authorized to settle, adjust and compromise such claims and Lender shall have all rights and remedies with respect to such policies
of insurance as are provided for in this Agreement and the other Term Loan Documents.

 

(c)          All
expenses of protecting, storing, warehousing, insuring, handling, maintaining and shipping any Collateral, all Taxes imposed under
any applicable law on any of the Collateral or in respect of the sale thereof, and all other payments required to be made by Lender
to any Person to realize upon any Collateral shall be borne and paid by Borrowers. Lender shall not be liable or responsible in
any way for the safekeeping of any of the Collateral or for any loss or damage thereto (except for reasonable care in the custody
thereof while any Collateral is in Lender’s actual possession) or for any diminution in the value thereof, or for any
act or default of any warehouseman, carrier, forwarding agency, or other Person whomsoever, but the same shall be at Borrowers’
sole risk.

 

5.2         Tax
Gross-Up and Indemnity.

  

(a)          All
payments by any Borrower or any other Obligor under this Agreement or any other Term Loan Document shall be made free and clear
of and without deduction or withholding for any and all Taxes unless required by law, rule, regulation or the interpretation of
such law, rule or regulation, by the relevant governmental authority. If any Obligor shall be so required to deduct or withhold
any such Taxes from or in respect of any amount payable to Lender under this Agreement or any other Term Loan Document:

 

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  (i)          the amount payable shall be increased by such additional amount as may be necessary so that after making all required deductions or withholdings (including deductions or withholdings applicable to additional amounts paid under this Section 5.2), Lender receives a net amount equal to the full amount it would have received if no deduction or withholding had been made;

 

(ii)         the
applicable Obligor shall make such required deductions or withholdings;

 

(iii)        the
applicable Obligor shall pay the full amount deducted or withheld to the relevant taxation or other governmental authority in accordance
with and within the time required by applicable law; and

 

(iv)        such
Obligor shall deliver to Lender as soon as practicable after it has made such payment to the applicable authority (x) a copy of
such receipt as issued by such authority evidencing the remittance of all amounts required to be deducted or withheld from the
sum payable under this Agreement or the relevant Term Loan Document, or (y) if such a receipt is not available from such authority,
notice of the payment of such amount deducted or withheld.

 

(b)          Without
prejudice to Section 5.2(a), if Lender is required at any time (whether before or after any Obligor has discharged all of
its other obligations under this Agreement or any other Term Loan Document) to make any payment on account of any Tax which an
Obligor is required to withhold in accordance with Section 5.2(a) or for which an Obligor is otherwise required to indemnify
Lender or if any liability in respect of any such payment is asserted, imposed, levied or assessed against Lender, Borrowers shall,
within 30 days of written demand of Lender, promptly indemnify Lender against such payment or liability, together with interest,
penalties and expenses payable or incurred in connection with such payment or liability, including, without limitation, any Tax
imposed by any jurisdiction on or in relation to any amounts paid to or for the account of Lender pursuant to this Section 5.2.
Lender shall notify Borrowers of the event in respect of which it believes it is entitled to make such claim and supply reasonable
supporting evidence including a copy of the relevant portion of any written assessment, provided, however, that Lender
shall not be required to disclose any information required to be kept confidential by regulation or contract (in which case the
basis of such confidentiality, at the request and expense of Borrowers, shall be supported by an opinion of counsel of reputable
standing).

 

(c)          If
any Obligor fails to pay any Taxes required to be paid pursuant to this Section 5.2 when due to the appropriate governmental
authority or fails to remit to Lender or for its own account, the required receipts or other documentary evidence required by this
Section 5.2, Obligors shall indemnify Lender, as applicable, for any incremental Taxes, interest that may become payable
by Lender as a result of any such failure.

 

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(d)          Each
Obligor will indemnify Lender for the full amount of Taxes imposed by any jurisdiction and paid by Lender with respect to any amounts
payable pursuant to this Section 5.2, and any liability arising from or with respect to such Taxes, whether or not such
Taxes were correctly or legally asserted. This indemnification shall be made within 30 days from the date Lender makes written
demand, which demand shall identify the nature and amount of Taxes for which indemnification is being sought and shall include
a copy of the relevant portion of any written assessment from the relevant taxing authority demanding payment of such Taxes.

 

 (e)          The Borrowers and the Lender intend and agree that the Term Loan shall be treated as indebtedness for income tax purposes. Having considered all facts relevant to a determination of the value of the Term Loan and the Warrants, the Borrowers and the Lender have concluded and do hereby agree that, within the meaning of Section 1273 of the Internal Revenue Code, the issue price for the Term Loan is as set forth on Schedule 5.2(e) attached hereto, and the difference between such issue price and the face value of the Term Loan shall be allocated to the purchase of the Warrants. The parties hereto recognize that this Agreement creates original issue discount as set forth on Schedule 5.2(e) to be taken into account by Lender and Borrowers for United States federal income tax purposes on the Term Loan, and they agree to adhere to this Agreement for such purposes and not to take any action inconsistent herewith.

 

(f)          The
agreements and obligations contained in this Section 5.2 shall survive the payment in full of the Term Loan, all principal,
interest, fees and any other amounts payable under this Agreement or the other relevant Term Loan Documents.

 

SECTION 6.        CONDITIONS
PRECEDENT

 

6.1         Conditions
Precedent. Lender shall not be obligated to make the Term Loan unless, as of the Closing Date, each of the following
conditions shall have been satisfied, in the sole opinion and discretion of Lender:

 

(a)          Each
Borrower and each other Person that is to be a party to any Term Loan Document shall have executed and delivered each such Term
Loan Document, all in form and substance satisfactory to Lender.

 

(b)          Borrowers
shall cause to be delivered to Lender the following documents, each in form and substance satisfactory to Lender:

 

(i)          a
copy of the Organic Documents of each Borrower and each Subsidiary with respect to which Senior Lender has received copies;

 

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(ii)         an
incumbency certificate and certified resolutions of the board of directors (or other appropriate governing body) of each Borrower
and each other Person executing any Term Loan Documents, signed by a Senior Officer of such Borrower or such other Person, authorizing
the execution, delivery and performance of the Term Loan Documents;

 

(iii)        [intentionally
omitted];

 

(iv)        a
favorable legal opinion of each Obligor’s outside legal counsel addressed to Lender regarding such matters as Lender and
its counsel may request;

 

(v)         the
Disbursement Letter, executed by Borrower Agent;

 

(vi)        evidence
of insurance, satisfactory to Lender and otherwise meeting the requirements of the Term Loan Documents;

 

(vii)       copies
of Lien Waiver/Access Agreements as required by the Senior Lender Loan Agreement, executed by the Senior Lender, the applicable
Borrower and the applicable landlord, bailee or warehouseman;

 

(viii)      to
the extent waived by the Senior Lender Loan Agreement and to the extent actually obtained by Borrower, Lien Waiver/Access Agreements
executed by the applicable Borrower and the applicable landlord, bailee or warehouseman;

 

(ix)         copies
of Deposit Account Control Agreements as required by the Senior Lender Loan Agreement, executed by the Senior Lender, the applicable
Borrower and the applicable financial institution;

 

(x)          Borrowers’
financial statements for their most recently concluded Fiscal Year and their most recently concluded fiscal month and such other
financial reports and information concerning Borrowers as Lender shall request;

 

(xi) the Term
Note, if requested by Lender, executed by the Borrowers; and

 

(xii)        all
additional opinions, documents, certificates and other assurances that Lender or its counsel may reasonably require.

 

(c)          Lender
shall have received, by virtue of UCC searches, PPSA searches and/or other Lien searches, evidence satisfactory to it that there
are no existing Liens with respect to any of the Collateral other than Permitted Liens, or such estoppel letters or PPSA acknowledgments
as Lender may request, in each case in form and substance satisfactory to Lender, and Lender shall have received evidence that
all appropriate UCC financing statements and PPSA filings have been duly made and recorded.

  

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(d)          Lender
shall have received evidence satisfactory to Lender in its discretion that all Debt of each Borrower and Subsidiary other than
Permitted Indebtedness shall have been paid and satisfied.

 

(e)          Lender
shall have received, in form and content satisfactory to it, all appraisals of any of the Collateral that may be required by Lender
and all field exams with respect to Borrowers or any of the Collateral as may be required by Lender.

 

(f)          Lender
shall have received assurances, satisfactory to it, that no litigation is pending or threatened against any Obligor which Lender
determines may have a Material Adverse Effect.

 

(g)          Borrowers
shall have satisfied such additional conditions precedent as are set forth in Item 6 of the Terms Schedule.

 

(h)          Common
Stock (I) shall be designated for quotation or listed on the Principal Market and (II) shall not have been suspended, as of the
Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal
Market have been threatened, as of the Closing Date, either (A) in writing by the SEC or the Principal Market or (B) by falling
below the minimum listing maintenance requirements of the Principal Market.

 

(i)          Lender
shall have received true, complete and correct copies of the Senior Lender Loan Documents, fully executed by the parties thereto.

 

6.2           Mortgages.
Within 120 days following the Closing Date, the Mexican Mortgage shall have been duly executed and delivered by Lakeland US
and Lakeland Mexico and recorded in the appropriate recording office, and evidence of said recording shall have been delivered
to Lender. Simultaneously with the recording of mortgages in favor of Senior Lender on Lakeland US’s real estate located
in New York and Alabama, but in no event later than 60 days after the date hereof, mortgages in favor of Lender on said properties
shall have been duly recorded in the appropriate recording office, a mortgagee title policy in form and substance reasonably satisfactory
to Lender shall have been issued and delivered to Lender by Chicago Title Insurance Company, and evidence of said recording shall
have been delivered to Lender, together with evidence of duly recorded fixture filings.

 

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SECTION 7.          REPRESENTATIONS
AND WARRANTIES

 

A.           BORROWERS’
REPRESENTATIONS AND WARRANTIES:

 

To induce Lender to enter
into this Agreement and to make the Term Loan or otherwise extend credit as provided in any of the Term Loan Documents, each Borrower
makes the following representations and warranties, all of which shall survive the execution and delivery of the Term Loan Documents,
and shall be deemed made as of the date hereof (except to the extent that such representations and warranties relate solely to
a specific earlier date, in which case such representations and warranties shall continue to be true and correct as of such specific
earlier date):

 

7.1           Existence
and Rights; Predecessors.  Each Borrower and each Subsidiary of each Borrower is an entity as described in the
Disclosure Schedule, duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization
and as duly qualified or licensed to transact businesses in all places where the failure to be so qualified could reasonably be
expected to have a Material Adverse Effect; has the right and power to enter into, and discharge all of its obligations under
the Term Loan Documents, each of which constitutes a legal, valid and binding obligation of such Person, enforceable against it
and accordance with its respective terms, subject only to bankruptcy and similar laws affecting creditors’ rights generally;
and has the power, authority, rights and franchises to own its property and to carry on its business as presently conducted. Except
as provided in the Disclosure Schedule, neither any Borrower nor any Subsidiary has changed its legal status or the jurisdiction
in which it is organized within the 5-year period immediately preceding the date of this Agreement; and, during the 5 year period
prior to the date of this Agreement, no Borrower has been a party to any merger, amalgamation, consolidation or acquisition of
all or substantially all of the assets or equity interests of any other Person.

 

7.2           Authority;
No Conflicts. The execution, delivery and performance of this Agreement and the other Term Loan Documents by each
Borrower and each other Person (other than Lender) executing any Term Loan Document have been duly authorized by all necessary
actions of such Person, and do not and will not violate (i) any provision of law (including federal and state securities laws),
or any writ, order or decree of any court or governmental authority or agency, or (ii) any provision of the Organic Documents
of such Person, or (iii) any Material Agreement to which such Person is a party, or (iv) the rules and regulations of the Principal
Market; do not and will not, with the passage of time or the giving of notice, result in a breach of, or constitute a default
or require any consent under, or result in the creation of, any Lien (other than in favor of Lender) upon any property or assets
of such Person pursuant to, any law, regulation, instrument or agreement to which any such Person is a party or by which any such
Person or its properties may be subject, bound or affected; and do not and will not give to any Person any rights of termination,
amendment, acceleration or cancellation of, any Material Agreement.

 

7.3           Litigation.  Except
as set forth in the Disclosure Schedule, there are no actions or proceedings pending, or to the knowledge of any Borrower threatened,
against any Obligor before any court or administrative agency, and no Borrower has any knowledge or belief of any pending, threatened
or imminent, governmental investigations or claims, complaints, actions or prosecutions involving any Borrower or any Obligor.
Neither any Borrower nor any other Obligor is in default with respect to any order, writ, injunction, decree or demand of any
court or any governmental or regulatory authority.

 

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7.4           Financial
Condition.  All financial statements and information relating to any Borrower or any Subsidiary which have been
delivered by any Borrower to Lender have been prepared in accordance with GAAP, unless otherwise stated therein, and fairly and
reasonably present each Borrower’s and its Subsidiaries’ financial condition. There has been no material adverse change
in the financial condition of any Borrower or any Subsidiary since the date of the most recent of such financial statements submitted
to Lender. No Borrower has any knowledge of any material liabilities, contingent or otherwise, which are not reflected in such
financial statements and information, and neither any Borrower nor any Subsidiary has entered into any special commitments or
contracts which are not reflected in such financial statements or information which may have a materially adverse effect upon
any Borrower’s financial condition, operations or business as now conducted. Each Borrower and each Subsidiary (other than
Lakeland Brazil) is, and after consummating the transactions described in the Term Loan Documents will be, Solvent.

 

7.5           Taxes. Each
Borrower and each of its Subsidiaries has duly and timely filed all federal, state, provincial, territorial and other tax returns
that are required to be filed, has duly, completely and correctly reported all income and all other amounts and information required
to be reported and has paid (other than as disclosed in the financial statements in the Annual Report on Form 10-K filed with
the SEC for the Fiscal Year ended January 31, 2013) all Taxes shown on said returns as well as all Taxes (including withholding,
FICA and ad valorem Taxes) required by applicable law to be paid or shown on any assessments or notices received by it to the
extent that such Taxes are not being Properly Contested; and, other than as disclosed in the financial statements in the Annual
Report on Form 10-K filed with the SEC for the Fiscal Year ended January 31, 2013, neither any Borrower nor any Subsidiary is
subject to any federal, state, provincial, territorial or local Liens for Taxes and has not received any notice of deficiency
or other official notice to pay any Taxes.

 

7.6           Title
to Assets. Each Borrower and its Subsidiaries have good title to their assets (including those shown or included
in its financial statements) and the same are not subject to any Liens other than Permitted Liens.

 

7.7           Material
Agreements.  Neither any Borrower nor any Subsidiary is a party to any agreement or instrument adversely affecting its business,
assets, operations or condition (financial or otherwise), with the possible exception of the Settlement Agreement referred to
in Section 7.21, nor is any such Person in default under any Material Agreement.

 

7.8           Intellectual
Property.  Each Borrower possesses all necessary trademarks, trade names, copyrights, patents, patent rights and licenses
to conduct its business as now operated, without any known conflict with the rights of others, including those described in the
Disclosure Schedule.

 

7.9           Compliance
With Laws.  Each Borrower and each of its Subsidiaries has duly complied with, and its properties, business operations
and leaseholds are in compliance in all material respects with, the provisions of all applicable laws, including all Environmental
Laws, OSHA and the Fair Labor Standards Act.

 

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7.10         Business
and Collateral Locations.  Each Borrower’s chief executive office, principal place of business, office where
each Borrower’s tangible business records are located and all other places of business of each Borrower (including places
of business where any tangible items of Collateral are kept or maintained) are all correctly and completely described in the Disclosure
Schedule; and except as otherwise described in the Disclosure Schedule, none of the Collateral is in the possession of any Person
other than a Borrower and all tangible items of the Collateral are located in, on or about the business premises of a Borrower
described in the Disclosure Schedule.

 

7.11         Accounts
and Other Payment Rights.  Each Document, Instrument, Chattel Paper or other writing evidencing or relating to any
Account or Payment Intangible of each Borrower (a) is genuine and enforceable in accordance with its terms except for such limits
thereon arising from bankruptcy or similar laws relating to creditors’ rights; (b) is not subject to any reduction or discount
(other than as stated in the invoice applicable thereto and disclosed to Lender), defense, setoff, claim or counterclaim of a
material nature against any Borrower except as to which Borrowers have notified Lender in writing; (c) is not subject to any other
circumstances that would impair the validity, enforceability or amount of such Collateral except as to which Borrowers have notified
Lender in writing; (d) arises from a bona fide sale of goods or delivery of services in the Ordinary Course of Business
and in accordance with the terms and conditions of any applicable purchase, contract or agreement; (e) is free of all Liens other
than Permitted Liens; and (f) is for a liquidated amount maturing as stated in the applicable invoice or other document pertaining
thereto.

 

7.12         Deposit
Accounts.  As of the Closing Date, neither any Borrower nor any of its Subsidiaries has any Deposit Accounts other than
those listed in the Disclosure Schedule.

 

7.13         Brokers.  There
has been no mortgage or loan broker in connection with this Agreement and the transactions contemplated hereby, and Borrowers
agree to indemnify and hold Lender harmless from any claim of compensation payable to any mortgage or loan broker in connection
with this loan transaction.

 

7.14         ERISA.  Except
as otherwise set forth in the Disclosure Schedule, neither any Borrower nor any of its Subsidiaries has any Plan. No Plan established
or maintained by any Borrower (including any Multiemployer Plan to which any Borrower contributes) which is subject to Part 3
of Subtitle B or Title I of ERISA had a material accumulated funding deficiency (as such term is defined in Section 302 of ERISA)
as of the last day of the most recent fiscal year of such Plan ended prior to the date hereof, or would have had an accumulated
funding deficiency (as so defined) on such day if such year were the first year of such Plan to which Part 3 of Subtitle B of
Title I of ERISA applied, and no material liability to the Pension Benefit Guaranty Corporation has been, or is expected by any
Borrower to be, incurred with respect to any such Plan by any Borrower. No Borrower is required to contribute to, and no Borrower
is, contributing to a Multiemployer Plan. No Borrower has any withdrawal liability to any Multiemployer Plan, nor has any reportable
event referred to in Section 4043(b) of ERISA occurred that has resulted or could result in liability of any Borrower; and no
Borrower has any reason to believe that any other event has occurred that has resulted or could result in liability of any Borrower
as set forth above.

 

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7.15         Labor
Relations.  Except as described in the Disclosure Schedule, neither any Borrower nor any of its Subsidiaries is a party
to or bound by any collective bargaining agreement, management agreement or consulting agreement. On the date hereof, there are
no material grievances, disputes or controversies with any union or any other organization of any Borrower’s or any Subsidiary’s
employees, or, to any Borrower’s knowledge, any threats of strikes, work stoppages or any asserted pending demands for collective
bargaining by any union or organization.

 

7.16         Anti-Terrorism
Laws.  Neither any Borrower nor any of its Affiliates is in violation of any Anti-Terrorism Law; engages in or conspires
to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of
the prohibitions set forth in any Anti-Terrorism Law; or is any of the following (each a “Blocked Person”):
(1) a Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224; (2) a Person
owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the
provisions of, Executive Order No. 13224; (3) a Person or entity with which any bank or other financial institution is prohibited
from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law; (4) a Person or entity that commits, threatens
or conspires to commit or supports “terrorism” as defined in Executive Order No. 13224; (5) a Person or entity that
is named as a “specially designated national” on the most current list published by the U.S. Treasury Department Office
of Foreign Asset Control at its official website or any replacement website or other replacement official publication of such
list; or (6) a Person who is affiliated with a Person listed above. Neither any Borrower nor any of its Affiliates conducts any
business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person
or deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to Executive
Order No. 13224.

 

7.17         Not
a Regulated Entity.  Neither any Borrower nor any Subsidiary is (a) an “investment company” or a “person
directly or indirectly controlled by or acting on behalf of an investment company” each as defined in the Investment Company
Act of 1940 or (b) subject to regulation under the Federal Power Act, the Interstate Commerce Act, any public utilities code or
any other applicable law relating to its authority to incur Debt.

 

7.18         No
Insider Status.  No Borrower is, and no Person having “control” (as that term is defined in 12 U.S.C. §375(b)(5)
or in regulations promulgated pursuant thereto) of any Borrower is, an “executive officer,” “director,”
or “principal shareholder” (as those terms are defined in 12 U.S.C. §375(b) or in regulations promulgated pursuant
thereto) of Lender.

 

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7.20         Capital
Structure.   (a)  The authorized capital stock of Lakeland US consists of: (i) 1,500,000 shares of
preferred stock, $.01 par value per share, none of which is issued and outstanding, and (ii) 10,000,000 shares of Common
Stock, $.01 par value per share, of which (A) 5,701,647 shares are issued, 5,345,206 shares are outstanding and 356,441 are
held as treasury stock, and (B) 352,115 shares are reserved for issuance pursuant to the Company’s stock option, restricted
stock and stock purchase plans. All issued and outstanding Equity Interests of each Borrower and each Subsidiary have been,
or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable and not issued in violation of applicable
law or any preemptive rights or other similar rights. Except as set forth on the Disclosure Schedule: (i) none of the capital
stock or other Equity Interests of Lakeland US or any of its Subsidiaries is subject to preemptive rights or any other similar
rights or any Liens suffered or permitted by Lakeland US or any of its Subsidiaries; (ii) there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever (collectively, “Options”) relating
to, or securities or rights convertible into, or exercisable or exchangeable for (collectively, “Convertible Securities”),
any capital stock or other Equity Interests of Lakeland US or any of its Subsidiaries, or contracts, commitments, understandings
or arrangements by which Lakeland US or any of its Subsidiaries is or may become bound to issue additional capital stock or other
Equity Interests of Lakeland US or any of its Subsidiaries, or Options or Convertible Securities convertible into, or exercisable
or exchangeable for, any capital stock or other Equity Interests of the Company or any of its Subsidiaries; (iii) there are
no outstanding debt securities, notes, credit or loan agreements, credit facilities or other agreements, documents or instruments
evidencing any Debt of Lakeland US or any of its Subsidiaries or by which Lakeland US or any of its Subsidiaries is or may become
bound; (iv) there are no financing statements securing obligations in any material amounts, either singly or in the aggregate,
filed in connection with Lakeland US or any of its Subsidiaries; (v) there are no agreements or arrangements under which
Lakeland US or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act or relating
to the voting of capital stock or other Equity Interests of Lakeland US or any of its Subsidiaries; (vi) there are no outstanding
securities or instruments of Lakeland US or any of its Subsidiaries which contain any redemption, put rights or similar provisions,
and there are no contracts, commitments, understandings or arrangements by which Lakeland US or any of its Subsidiaries is or
may become bound to purchase, repurchase, retire or redeem or make any payment in respect of (including dividend or distribution),
any capital stock or other securities of Lakeland US or any of its Subsidiaries or other Person, or to provide funds to, or make
any investment (in the form of a loan, capital contribution or otherwise) in, any other Person; (vii) there are no securities,
rights or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of any of the Borrower
Securities; (viii) neither Lakeland US nor any of its Subsidiaries has any stock appreciation rights or “phantom stock”
plans or agreements or any similar plan or agreement; and (ix) Lakeland US and its Subsidiaries have no liabilities or obligations
required to be disclosed in the SEC Documents (as defined below), but not so disclosed in the SEC Documents, other than those
incurred in the ordinary course of the business of Lakeland US and its Subsidiaries and which, individually or in the aggregate,
do not and would not have a Material Adverse Effect.  Lakeland US has obtained valid waivers of any rights of any party to
purchase any Borrower Securities to be issued pursuant to this Agreement, the Warrants or the other Term Loan Documents or to
be entitled to anti-dilution adjustments in respect of any Equity Interests in connection with the Term Loan Documents. 
There are no dividends or distributions in respect of any Equity Interests of any Borrower or any Subsidiary that are due and
payable but not yet paid.  Lakeland US has provided to Lender true, correct and complete copies of the Organic Documents
of Lakeland US and each of its Subsidiaries, and a true, correct and complete description of the material terms of all Options
and Convertible Securities convertible into, or exercisable or exchangeable for, any capital stock or other Equity Interests of
Lakeland US or any of its Subsidiaries and the material rights of the holders thereof with respect thereto.

 

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(c)          
The Warrants have been duly authorized and will be validly issued, free from all preemptive or similar rights. The Warrants will
be issued in compliance with all applicable securities laws, provided that the representations and warranties of the Lender in
respect of the Warrants are true and accurate. Upon issuance in accordance with exercise of the Warrants or the Interest Stock
Election, as the case may be, the Warrant Shares and the Interest Shares, respectively, will have been duly authorized, and will
be validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, Liens and charges with respect
to the issue thereof, and will be issued in compliance with all applicable securities laws, with the holders being entitled to
all rights accorded to a holder of Common Stock. The issuance of the Warrants, the Warrant Shares and Interest Shares shall be
free from all Taxes, liens and charges with respect to the issue thereof. As of the Closing, the Company shall have reserved from
its duly authorized capital stock not less than the sum of (i) 100% of the maximum number of shares of Common Stock issuable upon
exercise of the Warrants, plus (ii) 100% of the maximum number of shares of Common Stock issuable upon the exercise by Lender of
the Interest Stock Election with respect to all interest computed at the Interest Rate and payable in respect of the Term Loan
from the Closing Date through and including the Maturity Date.

 

(d)          The
Warrants are exercisable, as of immediately following and after giving effect to the Closing, for an aggregate of ten percent (10%)
of all of the issued and outstanding shares of Common Stock, calculated on a fully diluted, as-converted basis (including all shares
of Common Stock issuable upon the exercise, conversion or exchange of all authorized or issued Options and Convertible Securities
(including the Warrants and any other warrants, if any, issued by Lakeland US) but excluding Interest Shares.

 

(e)          Lakeland
US is not in violation of the listing requirements of the Principal Market and has no knowledge of any facts which would reasonably
lead to delisting or suspension of the Common Stock in the foreseeable future.

 

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7.20Lakeland Brazil; Lakeland Argentina.  
No Borrower is directly or indirectly liable or responsible for any Debt, liabilities or obligations of any of their Subsidiaries
(including, without limitation, any liability for value-added tax or other taxes), other than:

 

(a) with respect to Lakeland Brazil, (i) settlement obligations
owing to former officers of Lakeland Brazil in the aggregate amount of $5,500,000 as of the Closing Date which are payable in quarterly
installments of $250,000 each, (ii) obligations of up to 1,100,000 Brazilian Reals (approximately $550,000) owing to Miguel Bastos
pursuant to a termination agreement, and (iii) a guaranty by Lakeland US in favor of Southern Mills, Inc., d/b/a TenCate Protective
Fabrics (“Southern Mills”), which is a supplier of Lakeland Brazil; Borrowers represent and warrant that the amount
owing pursuant to such guaranty is approximately $474,000 as of the Closing Date, and Borrowers covenant and agree in favor of
Lender that the liability of Borrowers with respect to the guaranty described in clause (iii) above shall not exceed $500,000 at
any time; and

  

(b) with respect
to Lakeland Argentina, a guaranty by Lakeland US in favor of Southern Mills, which is a supplier of Lakeland Argentina; Borrowers
represent and warrant that the amount owing pursuant to such guaranty is approximately $324,000 as of the Closing Date, and Borrowers
covenant and agree in favor of Lender that the liability of Borrowers with respect to the guaranty described in this clause (b)
shall not exceed $400,000 at any time.

 

7.21         [Intentionally
Omitted].

 

7.22         Disclosure
Schedule. All of the representations and warranties in the Disclosure Schedule are true and correct on the date of this
Agreement.

 

7.23         Canadian
Benefit Plans. Except as set forth in the Disclosure Schedules, neither any Borrower nor any of its Subsidiaries has at
any time in the past or present established or been associated with any Canadian Pension Plans or any Canadian Benefit Plans. Except
as set forth in the Disclosure Schedules, neither any Borrower nor any of its Subsidiaries does, and has not ever, sponsored, administered,
participated in or contributed to a retirement or pension arrangement in Canada that provides defined benefits to employees or
former employees of a Borrower or any of its Subsidiaries.

 

7.24         Financial
Advisor. Lender is not acting as a financial advisor or fiduciary of any Borrower or any Subsidiary (or in any similar
capacity) with respect to the Term Loan Documents and the transactions contemplated hereby, and any advice given by Lender or any
of its representatives or agents in connection with the Term Loan Documents and the transactions contemplated hereby is merely
incidental to the transactions contemplated hereby. Each Obligor’s decision to enter into the Term Loan Documents has been
based solely on the independent evaluation by the Obligors and their representatives.

  

7.25         No
General Solicitation; Placement Agent’s Fees. Neither the Borrowers, nor any of their respective Affiliates, nor
any Person acting on their behalf, have engaged in any form of general solicitation or general advertising (within the meaning
of Regulation D) in connection with the offer or sale of the Borrower Securities. The Borrowers shall not pay any placement agent’s
fees, financial advisory fees, or brokers’ commissions relating to or arising out of the transactions contemplated hereby.
The Borrowers shall pay, and hold Lender harmless against, any liability, loss or expense (including, without limitation, attorney’s
fees and out-of-pocket expenses) arising in connection with any such claim.

 

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7.26         No
Integrated Offering. None of the Borrowers, the Subsidiaries, any of their Affiliates, or any Person acting on their behalf
has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances
that would require registration of any of the Borrower Securities under the 1933 Act or cause this offering of the Borrower Securities
to be integrated with prior offerings by Lakeland US for purposes of the 1933 Act or any applicable stockholder approval provisions,
including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the
Equity Interests of Lakeland US are listed or designated. None of the Borrowers, the Subsidiaries, their Affiliates or any Person
acting on their behalf will take any action or steps referred to in the preceding sentence that would require registration of any
of the Borrower Securities under the 1933 Act or cause the offering of the Borrower Securities to be integrated with other offerings.

 

7.27         Dilutive
Effect. The Borrowers understand and acknowledge that the number of shares of Common Stock issuable upon exercise of the
Warrants or election of the Interest Stock Election, will increase in certain circumstances. The Borrowers further acknowledge
that the obligation of Lakeland US to issue Common Stock upon exercise of the Warrants and Interest Shares upon exercise of the
Interest Stock Election is, in each case, absolute and unconditional regardless of the dilutive effect that such issuance may have
on the ownership interests of other stockholders of Lakeland US.

 

7.28         Application
of Takeover Protections; Rights Agreement. Lakeland US and its board of directors have taken all necessary action, if any,
in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Organic Documents of Lakeland US or the laws of the jurisdiction
of its formation which is or could become applicable to Lender or the holder of any Warrant as a result of the transactions contemplated
by this Agreement. Lakeland US has not adopted a stockholder rights plan or similar arrangement relating to accumulations of beneficial
ownership of Common Stock or a change in control of Lakeland US.

 

7.29         SEC
Documents; Financial Statements. During the two years prior to the date hereof, Lakeland US has filed all reports, schedules,
forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934
Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements, notes and
schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”).
The Borrowers have delivered to Lender true, correct and complete copies of the SEC Documents not available on the EDGAR system.
As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the
rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the
time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading. Except as disclosed in the Disclosure Schedule, as of their respective dates, the financial statements of
Lakeland US included in the SEC Documents complied as to form in all material respects with applicable accounting requirements
and the published rules and regulations of the SEC with respect thereto.

 

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7.30         Sarbanes-Oxley
Act. Lakeland US is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective
as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are effective as
of the date hereof.

 

7.31         Internal
Accounting and Disclosure Controls. Except as described in Part II, Item 9A the Annual Report on Form 10-K for the Fiscal
Year ended January 31, 2013 and Part I, Item 4 the Quarterly Report on Form 10-Q for the three months ended April 30, 2013 of Lakeland
US, Lakeland US maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset
and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s
general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing
assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference. Except as described
in Part II, Item 9A the Annual Report on Form 10-K for the Fiscal Year ended January 31, 2013 and Part I, Item 4 the Quarterly
Report on Form 10-Q for the three months ended April 30, 2013 of Lakeland US, Lakeland US maintains disclosure controls and procedures
(as such term is defined in Rule 13a-14 under the 1934 Act) that are effective in ensuring that information required to be disclosed
by Lakeland US in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within
the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed in
to ensure that information required to be disclosed by Lakeland US in the reports that it files or submits under the 1934 Act is
accumulated and communicated to Lakeland US’s management, including its principal executive officer or officers and its principal
financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure. Except as described in
Part II, Item 9A the Annual Report on Form 10-K for the Fiscal Year ended January 31, 2013 and Part I, Item 4 the Quarterly Report
on Form 10-Q for the three months ended April 30, 2013 of Lakeland US, during the twelve months prior to the date hereof, neither
any Borrower nor any Subsidiary has received any notice or correspondence from any accountant relating to any potential material
weakness in any part of the system of internal accounting controls of any Borrower or any Subsidiary.

 

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7.32         Manipulation
of Price. Lakeland US has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of Lakeland US to facilitate
the sale or resale of any of the Borrower Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases
of, any of the Borrower Securities (except for customary placement fees payable in connection with this transaction), or (iii)
paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of Lakeland US (except
for customary placement fees payable in connection with this transaction).

 

B. LENDER’S
REPRESENTATIONS AND WARRANTIES:

 

Lender represents
and warrants to Borrower as follows:

 

7.33         Existence
and Rights. Lender is a limited liability company validly existing and in good standing under the laws of the jurisdiction
of its formation; has the right and power to enter into, and discharge all of its obligations under the Term Loan Documents to
which it is a party, each of which constitutes a legal, valid and binding obligation of the Lender, enforceable against it in accordance
with its respective terms, subject only to bankruptcy and similar laws affecting creditors’ rights generally; and has the
power, authority, rights and franchises to own its property and to carry on its business as presently conducted.

 

7.34         Authority;
No Conflicts. The execution, delivery and performance by Lender of this Agreement and the other Term Loan Documents to
which Lender is a party have been duly authorized and do not and will not violate (i) any provision of law (including federal and
state securities laws), or any writ, order or decree of any court or governmental authority or agency applicable to Lender, or
(ii) any provision of the Organic Documents of the Lender, or (iii) any material agreement to which Lender is a party.

 

7.35         Acquisition
for Investment. The Lender is acquiring the Term Note and the Warrants for its own account for investment and not with
a view towards the public sale or distribution thereof in violation of the 1933 Act; and the Lender will acquire any Interest Shares
and Warrant Shares for its own account for investment and not with a view towards the public sale or distribution thereof in violation
of the 1933 Act.

 

7.36         Accredited
Investor. The Lender is an “accredited investor” as that term is defined in Rule 501 of Regulation D under
the 1933 Act.  Lender has been afforded the opportunity to ask questions of and receive answers
from the Company concerning the terms and conditions of the transactions contemplated hereby. Neither such inquiries nor any other
due diligence investigations conducted by Lender or its advisors, if any, or its representatives shall modify, amend or affect
Lender’s right to rely on the Company’s representations and warranties contained herein.

 

7.37         Reoffers
and Resales. The Lender will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit
any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Borrower Securities unless registered under the
1933 Act, pursuant to an exemption from registration under the 1933 Act or in a transaction not requiring registration under the
1933 Act.

 

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7.38         Borrower
Reliance. The Lender understands that (1) the Term Note and the Warrants are being issued to the Lender, and (2) the Interest
Shares, if any, and the Warrant Shares will be issued to the Lender, in each such case, in reliance on one or more exemptions from
the registration requirements of the 1933 Act, including, without limitation, Regulation D, and exemptions from state securities
laws and that the Borrowers are relying upon the truth and accuracy of, and the Lender’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Lender set forth herein in order to determine the availability
of such exemptions and the eligibility of the Lender to acquire the Borrower Securities. 

 

SECTION 8.          AFFIRMATIVE
COVENANTS

 

At all times prior to
the Maturity Date and Full Payment of all of the Obligations, each Borrower covenants that it shall, and shall cause each of the
Subsidiaries to:

 

8.1           Notices.  Notify
Lender, promptly after any Borrower’s obtaining knowledge thereof, of (i) any Default or Event of Default; (ii) the
commencement of any material action, suit or other proceeding against, or any demand for arbitration with respect to, any Obligor;
(iii) the occurrence or existence of any default (or claimed default) by an Obligor under any Material Agreement or any agreement
relating to Debt for Money Borrowed; or (iv) any other event or transaction which has or could reasonably be expected to have
a Material Adverse Effect.

 

8.2           Rights
and Facilities.  Maintain and preserve all rights (including all rights related to Intellectual Property), franchises and
other authority adequate for the conduct of its business; maintain its properties, equipment and facilities in good order and
repair, ordinary wear and tear excepted; conduct its business in an orderly manner without voluntary interruption; and maintain
and preserve its existence.

 

8.3           Insurance.  In
addition to the insurance required by the Term Loan Documents with respect to the Collateral, maintain with its current insurers
or with other financially sound and reputable insurers having a rating of at least A- or better by Best’s Ratings,
a publication of A.M. Best Company, (i) insurance with respect to its properties and business against such casualties and
contingencies of such type (including product liability, workers’ compensation, larceny, embezzlement or other criminal
misappropriation insurance) and in such amounts and with such coverages, limits and deductibles as is customary in the business
of such Borrower or such Subsidiary (ii) products liability coverage and marine cargo coverage, in such amounts and with such
coverages, limits and deductibles as is customary in the business of such Borrower or such Subsidiary, and (iii) business interruption
insurance, in an amount approved by Lender in its reasonable discretion.

 

8.4           Visits
and Inspections.  Permit representatives of Lender from time to time, as often as may be reasonably requested, but only
during normal business hours and (except when a Default or Event of Default exists) upon reasonable prior notice to Borrowers
to: visit and inspect properties of each Borrower and each of their Subsidiaries; inspect, audit and make extracts from each Borrower’s
and each Subsidiary’s books and records; and discuss with each Borrower’s and each Subsidiary’s officers, employees
and independent accountants each Borrower’s and each Subsidiary’s business, financial conditions, business prospects
and results of operations.

 

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8.5           Taxes;
Other Charges.  File when due all federal, state, provincial, territorial and local filings, returns, and reports required
to be filed in respect of Taxes and pay and discharge all Taxes and other charges the non-payment of which could result in a Lien
on any Borrower’s assets prior to the date on which such Taxes or other charges, as applicable, become delinquent or any
penalties attached thereto, except and to the extent only that such Taxes or other charges, as applicable, are being Properly
Contested, and, if requested by Lender, shall provide proof of payment or, in the case of withholding or other employee taxes,
deposit of payments required by applicable law. Each Borrower shall, and shall cause each of its Subsidiaries to, deliver to Lender
copies of all of Tax returns (and amendments thereto) promptly after the filing thereof.

 

8.6           Financial
Statements and Other Information.   (a) Keep adequate records and books of account with respect to its business activities
in which proper entries are made in accordance with GAAP reflecting all its financial transactions; and cause to be prepared and
furnished to Lender the following (all to be prepared in accordance with GAAP applied on a consistent basis):

 

(i)          as
soon as available, and in any event within 90 days after the close of each Fiscal Year, unqualified audited balance sheets of each
Borrower and its Subsidiaries as of the end of such Fiscal Year and the related statements of income, shareholders’ equity
and cash flow, on a consolidated and consolidating basis, certified without qualification by a firm of independent certified public
accountants of recognized national standing selected by Borrowers but reasonably acceptable to Lender (except that the consolidating
statements described above may be prepared internally and certified to Lender by Borrowers’ chief financial officer) and
setting forth in each case in comparative form the corresponding consolidated and consolidating figures for the preceding Fiscal
Year;

 

(ii)         as
soon as available, and in any event within 30 days after the end of each month hereafter, including the last month of Borrowers’
Fiscal Year, unaudited balance sheets of each Borrower and its Subsidiaries as of the end of such month and the related unaudited
consolidated statements of income for such month and for the portion of Borrowers’ Fiscal Year then elapsed, on a consolidated
and consolidating basis, setting forth in each case in comparative form the corresponding figures for the preceding Fiscal Year
and certified by the principal financial officer of Borrowers as prepared in accordance with GAAP and fairly presenting the consolidated
financial position and results of operations of Borrowers and their Subsidiaries for such month and period subject only to changes
from audit and year-end adjustments and except that such statements need not contain notes, and an unaudited statement of cash
flows on a consolidated basis only provided within 45 days following the end of each fiscal quarter;

 

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(iii)        as
soon as available, and in any event no later than 60 days prior to the end of Borrowers’ 2014 Fiscal Year and 60 days prior
to the end of each Fiscal Year thereafter, Borrowers’ projected balance sheet and income statement and statement of cash
flows for each month of the next Fiscal Year, accompanied by a statement of assumptions and supporting schedules and information,
and are commercially reasonable and in a form acceptable to Lender in its discretion;

 

(iv)        promptly
after the sending or filing thereof, as the case may be, copies of any proxy statements, financial statements or reports which
any Borrower has made generally available to its shareholders; copies of any regular, periodic and special reports or registration
statements or prospectuses which any Borrower files with the SEC or any governmental authority which may be substituted therefor,
or any national securities exchange; and copies of any press releases or other statements made available by any Borrower to the
public concerning material changes to or developments in the business of any Borrower; and

 

(v)         concurrently
with the delivery of any financial information, notices, borrowing base certificates or reports to Senior Lender, copies thereof.

 

Concurrently
with the delivery of the financial statements described in clauses (i) and (ii) of this Section, or more frequently if requested
by Lender during any period that a Default or Event of Default exists, Borrowers shall cause to be prepared and furnished to Lender
a Compliance Certificate.

 

(b)          Promptly
after the sending or filing thereof, Borrowers shall also provide to Lender copies of any annual report to be filed in accordance
with ERISA in connection with each Plan and such other data and information (financial and otherwise) as Lender, from time to time,
may reasonably request, bearing upon or related to the Collateral or any Borrower’s and any of its Subsidiaries’ financial
condition or results of operations.

 

(c)          Borrowers
shall also provide to Lender promptly (and in any event within three Business Days) such other information, schedules and reports
(in form and detail reasonably acceptable to Lender) as Lender may reasonably request from time to time with respect to one or
more Borrowers, Lakeland Brazil, any other Subsidiary or any Collateral.

 

    	49

    	 

    

 

(d)          All
financial information and reporting required to be provided by Borrowers to Lender, to the extent the same relates to or includes
Subsidiaries, shall include, without limitation, one report for Borrowers and their Subsidiaries on a consolidated basis, and one
report for Borrowers and their Subsidiaries (excluding Lakeland Brazil) on a consolidated basis.

 

8.7           Compliance
with Laws.  Comply in all material respects with all laws relating to each Borrower, the conduct of its business and
the ownership and use of its assets, including ERISA, all Environmental Laws, OSHA, the Fair Labor Standards Act and all other
laws regarding the collection, payment and deposit of the Taxes, and obtain and keep in full force and effect any and all governmental
and regulatory approvals necessary to the ownership of its properties or the conduct of its business and shall promptly report
any non-compliance to Lender.

 

8.8           Reimbursement
for Lender Expenses.  Upon the demand of Lender, promptly reimburse Lender for all sums expended by Lender which constitute
Lender Expenses.

 

8.9           Financial
Covenants.  Comply with all of the financial covenants set forth in Item 7 of the Terms Schedule.

 

8.10         After-Acquired
Collateral. Promptly notify Lender in writing if, after the Closing Date, any Obligor obtains any interest in any Collateral
consisting of Deposit Accounts, Chattel Paper, Documents, Instruments, Intellectual Property, Investment Property or Letter-of-Credit
Rights and, upon Lender’s request, promptly take such actions as Lender deems appropriate to effect Lender’s duly perfected,
Lien upon such Collateral, subject only to Permitted Liens, including, subject to the Senior Lender Subordination Agreement obtaining
any appropriate possession, Deposit Account Control Agreement, control agreement or Lien Waiver/Access Agreement. If any Collateral
is in the possession of a third party, at Lender’s request, Obligors shall use commercially reasonable efforts to obtain
an acknowledgment that such third party holds the Collateral for the benefit of Lender.

 

8.11         Qualification
for Sale. Take such action as Lender shall reasonably determine is necessary in order to obtain an exemption for or to
qualify the Warrants and the other Borrower Securities for issuance to the Lender pursuant to this Agreement under applicable securities
or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification), and shall
provide evidence of any such action so taken to the Buyers on or prior to the Closing Date; and shall make all filings and reports
relating to the offer and sale of the Borrower Securities required under applicable securities or “Blue Sky” laws of
the states of the United States following the Closing Date.

 

8.12         Reporting
Status. Until the date on which the Obligations have been paid and none of the Warrants is outstanding (the “Reporting
Period”), file all reports required to be filed with the SEC pursuant to the 1934 Act, and shall not terminate the status
of Lakeland US as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder
would otherwise permit such termination.

 

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8.13         Listing.
Use commercially reasonable efforts to maintain the Common Stock’s authorization for quotation on the Principal Market; not
take any action which would be reasonably expected to result in the delisting or suspension of the Common Stock on the Principal
Market; and pay all fees and expenses in connection with satisfying its obligations under this Section 8.13.

 

8.14         Reservation
of Shares. Take all action necessary so that Lakeland US shall at all times have authorized, and reserved for the purpose
of issuance, a number of shares of Common Stock that is not less the sum of (i) 100% of the maximum number of shares of Common
Stock issuable upon exercise of the Warrants, plus (ii) 100% of the maximum number of shares of Common Stock issuable upon the
exercise by Lender of the Interest Stock Election with respect to all interest computed at the Interest Rate and payable in respect
of the Term Loan from the Closing Date through and including the Maturity Date.

 

8.15         Manipulative
Transactions. Refrain from trading in Common Stock during the twenty (20) trading day period prior to the effective date
of the next succeeding Interest Stock Election Notice with the principal purpose of depressing the per-share price thereof.

 

SECTION 9.          NEGATIVE
COVENANTS

 

At all times prior to
the Maturity Date and Full Payment of the Obligations, no Borrower shall, and no Borrower shall permit any Subsidiary to:

 

9.1           Fundamental
Changes.  Merge, amalgamate, reorganize, or consolidate with any Person, or liquidate, wind up its affairs or dissolve itself,
in each case whether in a single transaction or in a series of related transactions, except for mergers or consolidations of any
Subsidiary with another Subsidiary and except for the sale, liquidation or winding up of Lakeland Brazil on terms and conditions
satisfactory to Lender in its reasonable discretion; change its name or conduct business under any fictitious name except for
any fictitious name shown in the Disclosure Statement; change its federal employer identification number, organizational identification
number or state of organization; relocate its chief executive office or principal place of business without having first provided
at least 30 days’ prior written notice to Lender; or amend, modify or otherwise change any of the terms or provisions in
any of its Organic Documents, except for changes that do not affect in any way any Borrower’s authority to enter into and
perform the Term Loan Documents to which it is a party, the perfection of Lender’s Liens in any of the Collateral, or any
Borrower’s authority or obligation to perform and pay the Obligations; or amend, modify or otherwise change any of the terms
or provisions of any Material Agreement.

 

9.2           Conduct
of Business.  Sell, lease or otherwise dispose of any of its assets (including any Collateral) other than a Permitted Asset
Disposition; suspend or otherwise discontinue all or any material part of its business operations (other than the operations of
Lakeland Brazil); engage in any business other than the business engaged in by it on the Closing Date and any business or activities
that are substantially similar, related or incidental thereto; create, incur or suffer to exist any Lien on any of its assets
other than Permitted Liens; make any loans, advances or other transfers of assets to any other Person, except transfers in the
Ordinary Course of Business by one Subsidiary that is an Obligor to a Borrower or to another Subsidiary that is an Obligor and
transfers permitted by Section 9.9; guarantee or otherwise become in any way liable for any Debt of another Person; or
create, incur, assume or suffer to exist any Debt except Permitted Indebtedness.

 

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9.3           Indebtedness.   Incur
or allow to exist any Debt other than Permitted Indebtedness.

 

9.4           Distributions.  Declare
or make any Distribution other than Distributions from one Borrower to another Borrower so long as each Borrower is Solvent both
before and after giving effect thereto.

 

9.5           Subordinated
Debt.  Amend or modify any provision of any instrument or agreement evidencing or securing any Senior Indebtedness (other
than amendments to the Senior Lender Loan Documents to the extent expressly permitted in the Senior Lender Subordination Agreement);
or pay any principal of or interest on any Subordinated Debt other than in accordance with the applicable Subordination Agreement.

 

9.6           ERISA;
Canadian Pension Plans.  Withdraw from participation in, permit the termination or partial termination of, or permit
the occurrence of any other event with respect to any Plan maintained for the benefit of any Borrower’s employees under
circumstances that could result in liability to the Pension Benefit Guaranty Corporation, or any of its successors or assigns,
or to any entity which provides funds for such Plan; or withdraw from any Multiemployer Plan described in Section 4001(a)(3) of
ERISA which covers any Borrower’s employees; or establish or commence contributing to or otherwise participate in any retirement
or pension arrangement that provides defined benefits; or acquire an interest in any Person if such Person sponsors, administers,
participates in, or has any liability in respect of, any retirement or pension arrangement that provides defined benefits; or
establish a Canadian Pension Plan or Canadian Benefit Plan or acquire an interest in any Person if such Person maintains a Canadian
Pension Plan or a Canadian Benefit Plan.

 

9.7           Certain
Tax and Accounting Matters.  File or consent to the filing of any consolidated income tax return with any Person other
than another Borrower or a Subsidiary; make any significant change in accounting treatment or reporting practices, except as may
be required by GAAP; or establish a fiscal year different from the Fiscal Year.

 

9.8           Subsidiaries.  Form
or acquire any Subsidiary.

 

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9.9           Restricted
Investments.  Make or have any Restricted Investments. As used herein, the term “Restricted
Investment” shall mean any acquisition of property by any Borrower or any of its Subsidiaries in exchange for cash or
other property, whether in the form of an acquisition of Equity Interests or Debt, or the purchase or acquisition by any Borrower
or any Subsidiary of any other property, or a loan, advance, capital contribution or subscription (including any investment or
other transfer of cash or other assets to any Subsidiary), except acquisitions of the following: (i) acquisitions of fixed assets
to be used in the Ordinary Course of Business of a Borrower or any Subsidiary so long as the acquisition costs thereof constitute
Capital Expenditures (as defined in Item 7 of the Terms Schedule) and do not violate any financial covenant contained in
this Agreement; (ii) acquisitions of Goods held for sale or lease or to be used in the manufacture of goods or the provision of
services by a Borrower or any of its Subsidiaries in the Ordinary Course of Business; (iii) acquisitions of current assets arising
from the sale or lease of Goods or the rendition of services in the Ordinary Course of Business by a Borrower or any Subsidiary;
(iv) investments by a Borrower to the extent existing on the Closing Date and fully disclosed in the Disclosure Schedule; (v)
acquisitions of marketable direct obligations issued or unconditionally guaranteed by the United States government and backed
by the full faith and credit of the United States government having maturities of not more than 12 months from the date of acquisition,
and domestic certificates of deposit and time deposit having maturities of not more than 12 months from the date of acquisition,
to the extent they are not subject to rights of offset in favor of any Person other than Lender; (vi)
acquisitions of publicly traded bonds of Argentinian corporations in a maximum value not to exceed $300,000 at any time; and (vii)
transfers of cash by Borrowers to Subsidiaries of Borrowers (other than Lakeland Brazil except to the extent permitted by Section
9.14) in a net amount not to exceed $1,000,000 per Fiscal Year, with no further restriction on transfers of said cash so transferred
among Subsidiaries other than as set forth in this Section 9.14.

 

9.10         Deposit
Accounts.  Open or maintain any Deposit Accounts except for (a) Deposit Accounts listed in the Disclosure Schedule, (b)
such other Deposit Accounts as shall be necessary for payroll, petty cash, local trade payables and other occasional needs of
Borrowers; and (c) Deposit Accounts of Subsidiaries which are not Obligors; provided that the aggregate balance of all
Deposit Accounts which are not subject to a Deposit Account Control Agreement on terms satisfactory to Lender may not at any time
exceed $5,000.

 

9.11         Affiliate
Transactions.  Enter into or be party to any transaction with an Affiliate of an Obligor, except (a) transactions
contemplated by the Term Loan Documents, (b) payment of reasonable compensation to officers and employees for services actually
rendered, (c) payment of customary directors’ fees and indemnities, (d) transactions with Affiliates that were consummated
prior to the Closing Date and fully disclosed in the Disclosure Schedule, (e) the transfers described in Section 9.9(vi),
and (f) transactions with Affiliates in the Ordinary Course of Business, upon fair and reasonable terms fully disclosed to Lender
and no less favorable than would be obtained in comparable arm’s length transaction with a non-Affiliate.

 

9.12         Restrictions
on Payment of Certain Debt.  In addition to the restrictions contained in Section 9.5, make any payments
(whether voluntary or mandatory, or a prepayment, redemption, retirement, defeasance or acquisition) with respect to any
Money Borrowed (other than the Obligations) prior to its due date under the agreements evidencing such Debt as in effect on
the Closing Date (or as amended thereafter with the prior written consent of Lender).

 

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9.13         Hedging
Agreements. Enter into any hedging agreement, except to hedge risks arising in the Ordinary Course of Business and not
for speculative purposes.

 

9.14         Lakeland
Brazil. Without limiting the generality of anything contained in Section 9.1 or Section 9.9, loan, invest,
distribute or otherwise transfer any money or any other assets to Lakeland Brazil; provided, however, that Borrowers may transfer
to Lakeland Brazil a net amount of up to $200,000 in the aggregate per Fiscal Year through and including the Fiscal Year ending
January 31, 2014. 

 

SECTION 10.         EVENTS
OF DEFAULTS; REMEDIES

 

10.1         Events
of Default.

The occurrence
or existence of any one or more of the following events or conditions shall constitute an Event of Default:

 

(a)          Borrowers
shall fail to pay any of the Obligations on the due date thereof (whether due at stated maturity, on demand, upon acceleration
or otherwise);

 

(b)          Any
Obligor fails or neglects to perform, keep or observe, in any material respect (but without duplication of any other materiality
or similar qualifier), any term, provision, condition, covenant or agreement, in this Agreement, in any of the other Term Loan
Documents, or in any other present or future agreement between one or more Obligors and Lender, provided that Borrowers
shall have the right to cure any such failure or neglect within 15 days after any Senior Officer obtains knowledge of such failure
or neglect if such failure or neglect does not consist of any Borrower’s breach of or default under Sections 2.1, 2.2,
2.8, 4.4, 4.5, 8.1, 8.3, 8.4, 8.5, 8.6(a)(i), 8.9, 8.13, 8.14 or 9 and such failure or neglect
does not constitute a separate Event of Default under this Section 10.1;

 

(c)          Any
representation, statement, report, or certificate made or delivered by or on behalf of any Borrower or any other Obligor to Lender
is not true and correct, in any material respect, when made or furnished;

 

(d)          An
Insolvency Proceeding is commenced against an Obligor and is not dismissed within 30 days thereafter, or an Insolvency Proceeding
is commenced by an Obligor; or an Obligor shall generally not or shall be unable to or shall admit in writing its inability to
pay its debts as they become due, or, except as otherwise expressly permitted under this Agreement, an Obligor files a certificate
of dissolution or like process;

 

(e)          Any
Borrower is enjoined, restrained or in any way prevented by court order from continuing to conduct all or any material part of
its business affairs or any Borrower voluntarily ceases to continue to conduct all or any material part of its business;

 

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(f)          One
or more judgments or orders for the payment of money shall be entered against any Obligor for an amount in excess of $350,000 (or
the US Dollar Equivalent of such amount) in aggregate for all such judgments outstanding at any time and (i) there shall have been
commenced by any creditor an enforcement proceeding upon such judgment or order, (ii) there shall be any period of 30 consecutive
days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect, or (iii) such judgment or order results in the creation or imposition of a Lien upon any of the Collateral that is not
a Permitted Lien;

 

(g)          There
shall occur any default or event of default on the part of any Obligor under any agreement, document or instrument to which such
Obligor is a party or by which such Obligor or any of its properties is bound, creating or relating to (i) the Debt owing to the
Senior Lender (except for any breach of any financial covenant contained in the Senior Lender Loan Agreement, or any other breach
of the Senior Lender Loan Documents if such breach is waived, provided that no such waiver shall be effective to waive any breach
of this Agreement not described in this Subsection (g)), or (ii) any other Debt (other than the Obligations) in excess of
$350,000 (or the US Dollar Equivalent of such amount), if the payment or maturity of such Debt may be accelerated in consequence
of such default or event of default or if demand for payment of such Debt may be made;

 

(h)          Any
Guarantor shall revoke or attempt to revoke the Guaranty signed by such Guarantor, shall repudiate or dispute such Guarantor’s
liability thereunder, shall be in default under the terms thereof, or shall fail to confirm in writing, promptly after receipt
of Lender’s written request therefor, such Guarantor’s ongoing liability under the Guaranty in accordance with the
terms thereof;

 

(i)          A
Reportable Event (consisting of any of the events set forth in Section 4043(b) of ERISA) shall occur which Lender, in its reasonable
discretion, shall determine constitutes grounds for the termination by the Pension Benefit Guaranty Corporation of any Plan or
the appointment by the appropriate United States district court of a trustee for any Plan, or if any Plan shall be terminated or
any such trustee shall be requested or appointed, or if any Borrower or any other Obligor is in “default” (as defined
in Section 4219(c)(5) of ERISA) with respect to payments to a Multiemployer Plan resulting from such Borrower’s or such other
Obligor’s complete or partial withdrawal from such Multiemployer Plan;

 

(j)          There
shall occur any event or condition that has, or could be reasonably expected to have, a Material Adverse Effect;

 

(k)          Any
Obligor shall challenge in any action, suit or other proceeding the validity or enforceability of any of the Term Loan Documents,
the legality or enforceability of any of the Obligations or the perfection or priority of any Lien granted to Lender, or any of
the Term Loan Documents ceases to be in full force or effect for any reason other than a full or partial waiver or release by Lender
in accordance with the terms thereof;

 

(l)          any
Obligor shall cease to be Solvent;

 

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(m)          Christopher
J. Ryan shall cease to be President and Chief Executive Officer of any Borrower or Gary Pokrassa shall cease to be Chief Financial
Officer of any Borrower, and, in either such case, a suitable replacement officer with similar or greater experience, expertise
and knowledge shall not be hired by such Borrower within 180 days thereafter; or

 

(n)          A
Change of Control shall occur.

 

10.2         Remedies.  Upon
and during the continuance of an Event of Default, Lender may, at its election, without notice of its election and without notice
to or demand upon any Obligor, and subject to the Senior Lender Subordination Agreement, do any one or more of the following:

 

(a)          Declare
all Obligations, whether arising pursuant to this Agreement or otherwise, to be due (except that, upon the occurrence of an Event
of Default specified in Section 10.1(d), all Obligations shall automatically and without notice or declaration become accelerated
and shall become immediately due and owing), whereupon the same shall become without further notice or demand (all of which notice
and demand each Borrower expressly waives) forthwith due and payable, and Borrowers shall forthwith pay to Lender the entire principal
of and accrued and unpaid interest on the Term Loan and other Obligations plus reasonable attorneys’ fees and its court costs
if such principal and interest are collected by or through an attorney-at-law;

 

(b)          Terminate
the Commitment, but without affecting Lender’s rights and security interest in the Collateral and without affecting the Obligations
owing by any Borrower to Lender;

 

 

(c)          After
an Assignment Event, notify Account Debtors of each Borrower that the Accounts have been assigned to Lender and that Lender has
a security interest therein, collect them directly, and charge the collection costs and expenses to the Term Loan Account;

 

(d)          Take
immediate possession of any of the Collateral, wherever located; require Borrowers to assemble the Collateral, at Borrowers’
expense, and make it available to Lender at a place designated by Lender which is reasonably convenient to both parties; and enter
any premises where any of the Collateral should be located and keep and store the Collateral on said premises until sold (and if
said premises are the property of any Borrower or any Affiliate of any Borrower, then Borrowers agree not to charge or permit such
Affiliate to charge Lender for storage thereof);

 

(e)          Sell
or otherwise dispose of all or any part of the Collateral in its then condition, or after any further manufacturing or processing
thereof, at public or private sales, with such notice as may be required by applicable law, in lots or in bulk, for cash or on
credit, all as Lender in its discretion may deem advisable; and Borrowers agree that any requirement of notice to Borrowers or
any other Obligor of any proposed public or private sale or other disposition of Collateral by Lender shall be deemed reasonable
notice thereof if given at least 10 days prior thereto, and such sale may be at such locations as Lender may designate in said
notice;

 

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(f)          Petition
for and obtain the appointment of a receiver, without notice of any kind whatsoever, to take possession of any or all of the Collateral
and business of each Borrower and to exercise such rights and powers as the court appointing such receiver shall confer upon such
receiver, each Borrower hereby waiving any requirement under applicable law that Lender post a bond in connection with the appointment
of any such receiver;

 

(g)          Apply
any cash collateral to the Obligations and draw on any letter of credit in favor of Lender which secures any of the Obligations;

 

(h)          Conduct
all appraisals, field examinations and other assessments of the Collateral as deemed necessary by Lender; engage or require Borrowers
to engage one or more financial consultants or workout professionals as approved by Lender in advance; take such additional collateral
as security for the Obligations as required by Lender and do all such other acts and things deemed necessary by Lender to preserve
its collateral security position hereunder; and

 

(i)          Exercise
all other rights and remedies available to Lender under any of the Term Loan Documents or applicable law (including, without limitation,
all rights and remedies of a secured party under the UCC and under the PPSA).

 

In connection
with the remedies described herein and in the other Term Loan Documents, Lender is hereby granted an irrevocable, non-exclusive
license or other right to use, license or sub-license (exercisable without payment of royalty or other compensation to any Obligor
or any other Person) any or all of each Borrower’s Intellectual Property and all each Borrower’s computer hardware
and software, trade secrets, brochures, customer lists, promotional and advertising materials, labels, and packaging materials,
and any property of a similar nature, in advertising for sale, marketing, selling and collecting and in completing the manufacturing
of any Collateral, and each Borrower’s rights under all licenses and franchise agreements shall inure to Lender’s benefit.
The proceeds realized from any sale or other disposition of any Collateral may be applied, after allowing 2 Business Days for collection,
first to any Lender Expenses and then to the remainder of the Obligations in such order of application as Lender may elect in its
discretion, with Borrowers and each of the other Obligors remaining liable for any deficiency.

 

10.3         Cumulative
Rights; No Waiver.  All covenants, conditions, warranties, guaranties, indemnities and other undertakings of Borrowers
in this Agreement or any of the other Term Loan Documents shall be deemed cumulative, and Lender shall have all other rights and
remedies not inconsistent herewith as provided under the UCC or other applicable law. No exercise by Lender of one right or remedy
shall be deemed an election, and no waiver by Lender of any Default or Event of Default on one occasion shall be deemed to be
a continuing waiver or applicable to any other occasion. No failure by Lender to exercise any right or remedy under this Section
10 or elsewhere in this Agreement shall be deemed a waiver of any such right or remedy. No waiver or course of dealing shall
be established by the failure or delay of Lender to require strict performance by Borrowers with any term of the Term Loan Documents,
or to exercise any rights or remedies with respect to the Collateral or otherwise.

 

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SECTION 11.         GENERAL
PROVISIONS

 

11.1         Notices
and Communications.

 

(a) All
notices, requests and other communications to or upon a party hereto shall be in writing (including facsimile transmission or similar
writing) and shall be given to such party at the address or facsimile number for such party in Item 8 of the Terms Schedule
or at such other address or facsimile number as such party may hereafter specify for the purpose by notice to Lender and Borrowers
in accordance with the provisions of this Section 11.1.

 

(b)          Except
as otherwise provided in this Section 11.1, each such notice, request or other communication shall be effective (i) if
given by facsimile transmission, when transmitted to the facsimile number specified herein for the noticed party and confirmation
of receipt is received, (ii) if given by mail, 3 Business Days after such communication is deposited in the U.S. Mail,
with first-class postage pre-paid, addressed to the noticed party at the address specified herein, or (iii) if given by personal
delivery, when duly delivered with receipt acknowledged in writing by the noticed party. In no event shall a voicemail message
be effective as a notice, communication or confirmation under any of the Term Loan Documents. Notwithstanding the foregoing, no
notice to or upon shall be effective until actual receipt by Lender.

 

(c)          Electronic
mail and internet websites may be used only to distribute routine communications, such as financial statements and other information
required by Section 8.6, and to distribute Term Loan Documents for execution by the parties thereto, and may not be used
for any other purpose as effective notice under this Agreement or any of the other Term Loan Documents.

 

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11.2         Performance
of Borrowers’ Obligations; Sharing of Information; Publicity.

 

(a)          If
any Borrower shall fail to discharge any covenant, duty or obligation hereunder or under any of the other Term Loan Documents,
Lender may, in its discretion at any time or from time to time, for Borrowers’ account and at Borrowers’ expense, pay
any amount or do any act required of any Borrower hereunder or under any of the other Term Loan Documents or otherwise lawfully
requested by Lender to (i) enforce any of the Term Loan Documents or collect any of the Obligations, (ii) preserve, protect,
insure or maintain or realize upon any of the Collateral, or (iii) preserve, defend, protect or maintain the validity or priority
of Lender’s Liens in any of the Collateral, including the payment of any judgment against any Borrower, any insurance premium,
any warehouse charge, any finishing or processing charge, any landlord claim, any other Lien upon or with respect to any of the
Collateral (whether or not a Permitted Lien). All payments that Lender may make under this Section and all out-of-pocket costs
and expenses (including Lender’s Expenses) that Lender pays or incurs in connection with any action taken by it hereunder
shall be reimbursed to Lender by Borrowers on demand with interest from the date such payment is made or such costs or expenses
are incurred to the date of payment thereof at the Default Rate. Any payment made or other action taken by Lender under this Section
11.2 shall be without prejudice to any right to assert, and without waiver of, an Event of Default hereunder and without prejudice
to Lender’s right to proceed thereafter as provided herein or in any of the other Term Loan Documents.

 

(b)          Each
Borrower hereby authorizes Lender and Lender’s Affiliates to use the names “Lakeland Industries” and “Lakeland
Protective Wear” together with variants of such names and related logotypes and the amount of the transaction in advertising
that promotes Lender and the business transaction between Borrowers and Lender. Lender will submit to Borrowers any type of written
or pictorial advertisement for Borrowers’ approval before Lender releases to the general public. Neither Lender nor any of
its subsidiaries, Affiliates, officers, employees and advertising agents shall have any liability to any Borrower arising out of
or related to the reasonable exercise of the rights hereby granted to Lender.

 

11.3         Effectiveness,
Successors and Assigns.  This Agreement shall be binding and deemed effective when executed by Borrowers and accepted by
Lender in the State of New York, and when so accepted, shall bind and inure to the benefit of the respective successors and assigns
of each of the parties; provided that no Borrower may assign this Agreement or any rights hereunder without Lender’s
prior written consent and any prohibited assignment shall be absolutely void. No consent to an assignment by Lender shall release
any Borrower from its Obligations to Lender. Lender may assign this Agreement and its rights and duties hereunder. Lender reserves
the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Lender’s
rights and benefits hereunder. Subject to compliance with applicable law, the Warrants, all Warrant Shares, and all Interest Shares
may be freely assigned separately from Lender’s rights and benefits under this Agreement.

 

11.4         General
Indemnity.  Borrowers hereby jointly and severally agree to indemnify and defend the Indemnitees against and to hold
the Indemnitees harmless from and against any Indemnified Claim that may be instituted or asserted against or incurred by any
of the Indemnitees and that either (i) arises out of or relates to this Agreement or any of the other Term Loan Documents
(including any transactions entered into pursuant to any of the Term Loan Documents, Lender’s Liens upon the Collateral,
or the performance by Lender of Lender’s duties, if any, or the exercise of any of Lender’s rights or remedies
under this Agreement or any of the other Term Loan Documents), or (ii) results from any Borrower’s failure to observe,
perform or discharge any of such Borrower’s covenants or duties hereunder. Without limiting the generality of the foregoing,
this indemnity shall extend to any Indemnified Claims instituted or asserted against or incurred by any of the Indemnitees by
any Person under any Environmental Laws or similar laws by reason of any Borrower’s or any other Person’s failure
to comply with laws applicable to solid or hazardous waste materials or other toxic substances. Additionally, if any Taxes
(excluding Taxes imposed upon or measured solely by the net income of Lender, but including any intangibles tax, stamp tax, recording
tax or franchise tax) shall be payable by Lender or any Obligor on account of the execution or delivery of this Agreement, or
the execution, delivery, issuance or recording of any of the other Term Loan Documents or any financing statement or other perfection
document relating thereto, or the creation or repayment of any of the Obligations hereunder, by reason of any applicable
law now or hereafter in effect, Borrowers shall pay (or shall promptly reimburse Lender for the payment of) all such Taxes,
including any interest and penalties thereon, and will indemnify and hold Indemnitees harmless from and against all liability
in connection therewith. The foregoing indemnities shall not apply to Indemnified Claims to the extent incurred by any Indemnitee
as a direct and proximate result of its own gross negligence or willful misconduct.

 

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11.5         Section
Headings; Interpretation.  Section headings and section numbers have been set forth herein for convenience only. Neither
this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against Lender or Borrowers, whether under
any rule of construction or otherwise. This Agreement has been reviewed by all parties and shall be construed and interpreted
according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of the parties hereto.

 

11.6         Indulgences
Not Waivers. Lender’s failure at any time or times to require strict performance by any Borrower of any provision
of this Agreement or any of the other Term Loan Documents shall not waive, affect or otherwise diminish any right of Lender thereafter
to demand strict compliance and to performance with such provision.

 

11.7         Severability;
Survival.  Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose
of determining the legal enforceability of any specific provision. Notwithstanding anything to the contrary contained in this
Agreement or any of the other Term Loan Documents, the obligations of Obligors with respect to each indemnity given by it in any
of the Term Loan Documents in favor of each Indemnitee shall survive the termination of the Commitment and the Full Payment of
the Obligations.

 

11.8         Modification;
Entire Agreement.  This Agreement cannot be changed or terminated orally. This Agreement and the other Term Loan Documents
represent the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior
agreements, understandings, negotiations and inducements regarding the same subject matter.

 

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11.9         Counterparts;
Facsimile Signatures.  This Agreement and any amendments hereto may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all
of which counterparts taken together shall constitute but one and the same instrument. Counterparts of each of the Term Loan Documents
may be delivered by facsimile or electronic mail and the effectiveness of each such Term Loan Document and signatures thereon
shall, subject to applicable law, have the same force and effect as manually signed originals and shall be binding on all parties
thereto.

 

11.10         Governing
Law.  This Agreement shall be deemed to have been made in the State of New York, and shall be governed by and construed
in accordance with the internal laws (without regard to conflict of law provisions) of the State of New York, but including Section
5-1401 of the New York General Obligations Law.

 

11.11         Consent
to Jurisdiction and Forum.  Each Borrower hereby consents to the non-exclusive jurisdiction of the United States District
Court for the Southern District of New York and the Supreme Court, New York County, New York, in any action, suit or other proceeding
arising out of or relating to this Agreement or any of the other Term Loan Documents, and each Borrower irrevocably agrees that
all claims and demands in respect of any such action, suit or proceeding may be heard and determined in any such court and irrevocably
waives any objection it may now or hereafter have as to the venue of any such action, suit or proceeding brought in any such court
or that such court is an inconvenient forum. Nothing herein shall limit the right of Lender to bring proceedings against any Borrower
in the courts of any other jurisdiction. Any judicial proceeding commenced by any Borrower against Lender or any holder of any
of the Obligations, or any Affiliate of Lender or any holder of any Obligations, involving, directly or indirectly, any matter
in any way arising out of, related to or connected with any Term Loan Document shall be brought only in the United States District
Court for the Southern District of New York or the Supreme Court, New York County, New York. Nothing in this Agreement shall be
deemed or operate to affect the right of Lender to serve legal process in any other manner permitted by law or to preclude the
enforcement by Lender of any judgment or order obtained in such forum or the taking of any action under this Agreement to enforce
same in any other appropriate forum or jurisdiction.

 

11.12         Waiver
of Certain Rights.  To the fullest extent permitted by applicable law, each Borrower hereby knowingly, intentionally and intelligently
waives (with the benefit of advice of legal counsel of its own choosing): (a) the right to trial by jury (which Lender hereby
also waives) in any action, suit, proceeding or counterclaim of any kind arising out of, related to or based in any way upon any
of the Term Loan Documents, the Obligations or the Collateral; (b) presentment, protest, default, non-payment, maturity, release,
compromise, settlement, extension or renewal of any or all commercial paper, accounts, contract rights, documents, instruments,
chattel paper and guaranties at any time held by Lender on which any Borrower may in any way be liable and hereby ratifies and
confirms whatever Lender may do in this regard; (c) notice prior to taking possession or control of any of the Collateral and
the requirement to deposit or post any bond or other security which might otherwise be required by any court or applicable law
prior to allowing Lender to exercise any of Lender’s self-help or judicial remedies to obtain possession of any of the Collateral;
(d) the benefit of all valuation, appraisement and exemption law; (e) any claim against Lender on any theory of liability, for
special, indirect, consequential, exemplary or punitive damages (as opposed to direct or actual damages) arising out of, in connection
with, or as a result of any of the Term Loan Documents, any transaction thereunder, the enforcement of any remedies by Lender
or the use of any proceeds of the Term Loan; (f) notice of acceptance of this Agreement by Lender; and (g) the right to assert
any confidential relationship that it may have under applicable law with any accounting firm and/or service bureau in connection
with any information requested by Lender pursuant to or in accordance with this Agreement (and each Borrower agrees that Lender
may contact directly any such accounting firm and/or service bureau in order to obtain any such information).

 

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11.13         USA
PATRIOT Act Notice.  To help fight the funding of terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each Person who opens an account. For purposes of this section,
account shall be understood to include loan accounts.

 

11.14         Credit
Inquiries.  Borrowers hereby authorize and permit Lender, at its discretion and without any obligation to do so, to respond
to credit inquiries from third parties concerning each Borrower or any of their Subsidiaries.

 

11.15         Additional
Provisions. Time is of the essence of this Agreement and the other Term Loan Documents. No provision of this Agreement
or any of the other Term Loan Documents shall be construed against or interpreted to the disadvantage of any party hereto by any
governmental authority by reason of such party having or being deemed to have structured, drafted or dictated such provision.

 

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IN WITNESS WHEREOF,
the parties hereto have executed this Agreement, to be effective on the date first set forth above.

 

	 	BORROWERS:
	 	 	 
	 	LAKELAND INDUSTRIES, INC.
	 	 	 
	 	By:	/s/ Christopher J. Ryan
	 	Name:	Christopher J. Ryan
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	LAKELAND PROTECTIVE WEAR INC.
	 	 	 
	 	By:	/s/ Christopher J. Ryan
	 	Name:	Christopher J. Ryan
	 	Title:	Assistant Secretary
	 	 	 
	 	LENDER:
	 	 	 
	 	LKL INVESTMENTS, LLC
	 	 	 
	 	By:	/s/ Steven Graham
	 	Name:	Steven Graham
	 	Title:	Treasurer

 

    	63

    	 

    

 

TERMS SCHEDULE

 

This TERMS SCHEDULE
(this “Terms Schedule”) is made a part of and incorporated into that certain Term Loan and Security Agreement
among LKL INVESTMENTS, LLC, a Delaware limited liability company (together with successors and assigns, “Lender”),
LAKELAND INDUSTRIES, INC., a Delaware corporation (“Lakeland US”), and LAKELAND PROTECTIVE WEAR INC.,
a Canadian corporation (“Lakeland Canada”; Lakeland US and Lakeland Canada are sometimes referred to herein
individually as a “Borrower” and collectively as “Borrowers”), dated June 28, 2013 (together
with all schedules and exhibits annexed thereto and all amendments, restatements, supplements or other modifications with respect
thereto, the “Term Loan Agreement”).

 

1.          Authorized
Officers:

 

In addition to the
Senior Officers, each of the following persons (if none, so state):

 

Teri W. Hunt, Vice
President of Finance of Lakeland US

 

2.          Early
Termination Fees; Applicable Termination Percentage:

 

(a)          Upon
prepayment of the Term Loan or upon acceleration of the Maturity Date (whether such acceleration is effected by Lender or automatically
as the result of the commencement of an Insolvency Proceeding by or against any Borrower), Borrowers shall be obligated to pay,
in addition to all of the other Obligations then outstanding, an amount equal to the product obtained by multiplying $3,500,000
by the applicable percentage set forth below:

 

(i)          5.00%
if the effective date of termination occurs on or before June 28, 2014;

 

(ii)         3.00%
if the effective date of termination occurs after June 28, 2014 but on or before June 28, 2015; or

 

(iii)        1.00%
if the effective date of termination occurs after June 28, 2015 but on or before June 28, 2016.

 

(b)          Upon
acceleration of the Maturity Date following a Change of Control, Borrowers shall be obligated to pay, in addition to all of the
other Obligations then outstanding and in addition to any amount payable pursuant to subsection (a), above, a fee equal to $35,000.

 

3.          Guarantors:

 

Laidlaw, Adams &
Peck, Inc.

 

4.          Interest
Rate:

 

12.0% per
annum through and including December 27, 2016, increased to 16% per annum on December 28, 2016 and 20% per annum on December 28,
2017. Until the first anniversary of the Closing, all interest shall either be PIK’ed or paid in Interest Shares.

 

    	 

    	 

    

 

5.          Fees
and Expenses:

 

		(a)	Fees: Borrowers shall pay to Lender the following
fees: (i) a monthly, non-refundable collateral monitoring fee in the amount of $5,000 per month, which shall be paid on the first
day of each month and on the Maturity Date, in arrears, beginning July 1, 2013; and (ii) the Early Termination Fees, to the
extent required to be paid pursuant to Item 2 of this Terms Schedule.

 

		(b)	Expenses: Borrowers shall reimburse Lender for all reasonable
costs and expenses incurred by Lender (including standard fees charged by Lender’s internal field examiners) in connection
with (i) examinations and reviews of Borrowers’ Books and such other matters pertaining to any Borrower or any Collateral
as Lender shall deem appropriate and shall pay to Lender the then standard amount charged by Lender per analyst per day ($900
per analyst per day as of the Closing Date) for each day that an employee or agent of Lender shall be engaged in an examination
or review of any of Borrowers’ Books, plus reasonable expenses; provided, however, that Borrowers shall not
be required to pay for more than three field examinations per calendar year (it being agreed that any field examination conducted
while a Default or Event of Default exists shall not count against such three-per-year limitation); (ii) appraisals of any
Collateral; provided, however, that Borrowers shall not be required to pay for more than one appraisal per calendar
year (it being agreed that any appraisal conducted while a Default or Event of Default exists shall not count against such one-per-year
limitation); (iii) reasonable legal fees and expenses incurred by Lender in connection with the preparation and negotiation of
the Term Loan Documents; and (iv) the actual charges paid or incurred by Lender if it elects to employ the services of one or
more third parties to perform financial audits of Borrowers, establish electronic collateral reporting of Borrowers, appraise
the Collateral or to assess Borrowers’ business valuation.

 

6.          Other
Conditions Precedent:

 

			Borrowers shall have on the Closing Date not less than $2,000,000 of Availability (as defined in
and pursuant to the Senior Lender Loan Agreement); the Senior Lender Loan Documents shall be in form and substance satisfactory
to Lender and Lender shall have received a true, correct and complete copy thereof, certified as such by a Senior Officer; and
Lender shall have received the Senior Lender Subordination Agreement in form and substance satisfactory to Lender, duly executed
by Borrowers and Senior Lender.

 

    	-2-

    	 

    

 

7.          Financial
Covenants:

 

Borrowers covenant
that, from the Closing Date until the Maturity Date and Full Payment of the Obligations, Borrowers and each Subsidiary shall comply
with the following additional covenants:

 

(a)          Fixed
Charge Coverage Ratio. At the end of each fiscal quarter of Borrowers, commencing with the fiscal quarter ending July 31, 2013,
Borrowers shall maintain a Fixed Charge Coverage Ratio of not less than 1.00 to 1.00 for the four fiscal quarter period then ending.

 

(b)          Minimum
Monthly EBITDA. Borrowers shall achieve, on a rolling basis as described below, EBITDA of not less than the following amounts
as of the end of each applicable period:

 

		·	As of July 31, 2013, for the two most recent fiscal quarters then ended, $1,890,000;

 

		·	As of October 31, 2013, for the three most recent fiscal quarters then ended, $2,830,000; and

  

		·	As of January 31, 2014, and as of the end of each succeeding fiscal quarter, for the four most
recent fiscal quarters then ended, $3,690,000.

 

(c)          Capital
Expenditures. Borrowers shall not during any Fiscal Year make Capital Expenditures in an amount exceeding $1,100,000 in the
aggregate.

 

(d)          Maximum
Senior Debt. Following the repayment in full of the Senior Indebtedness and the occurrence of the Commitment Termination Date
(as defined in the Senior Lender Loan Agreement), Borrowers shall not have any outstanding Indebtedness that is senior to the Obligations
in excess of the amount set forth below during the applicable period set forth below.

 

	Period	 	Maximum Indebtedness that is
 Senior to the Obligations	 
	From and including January 1, 2017 through and including April 30, 2017	 	$	8,000,000	 
	From and including May 1, 2017 through and including July 31, 2017	 	$	5,000,000	 
	August 1, 2017 and thereafter	 	$	3,000,000	 

 

    	-3-

    	 

    

.

As used in
this Item 8 of the Terms Schedule, the following terms shall have the following means ascribed to them.

 

“Capital
Expenditures” means all liabilities incurred or expenditures made by any Borrower or any Subsidiary (other than Lakeland
Brazil) for the acquisition of fixed assets, or any improvements, substitutions or additions thereto with a useful life of more
than one year.

 

“EBITDA”
means, for any period, determined on a consolidated basis for Borrowers and their Subsidiaries (but excluding Lakeland Brazil),
net income, calculated before interest expense, provision for income taxes, depreciation and amortization expense, gains or losses
arising from the sale of capital assets, gains arising from the write-up of assets, any extraordinary gains, other non-cash charges,
and, to the extent expressly approved in writing by Lender, other one-time charges (in each case, to the extent included in determining
net income).

 

“Fixed
Charge Coverage Ratio” means, for any period, in each case determined with respect to Borrowers and their Subsidiaries
(other than Lakeland Brazil), the quotient obtained by dividing (a) the difference between (i) EBITDA for such period, minus
(ii) the sum of (A) all unfinanced Capital Expenditures made in such period, and (B) any Distributions paid in such period, and
(C) cash Taxes paid in such period (without benefit of any refund), divided by (b) the sum of (i) the current portion
of scheduled principal amortization on Debt for Money Borrowed plus (ii) cash interest payments paid in such period.

 

8.          Notices:

 

If to one or more Borrowers:

 

Lakeland Industries,
Inc.

701 Koehler Avenue,
Suite 7

Ronkonkoma, New York
11779

Attention: Gary Pokrassa

Facsimile: (631) 981-9751

 

with a courtesy copy
to (which shall not be deemed notice):

 

Moomjian, Waite &
Coleman, LLP

100 Jericho Quadrangle
- Suite 208

Jericho, New York 11753

Attention: Gary T.
Moomjian

Facsimile: (516) 937-5050

 

    	-4-

    	 

    

 

If to Lender:

 

LKL INVESTMENTS, LLC

P.O. Box 692

Flagtown, New Jersey
08821

 

with a courtesy copy
to (which shall not be deemed notice):

 

Lowenstein Sandler
LLP

1251 Avenue of the
Americas, 17th floor

New York, New York
10020

Attention: Sharon L.
Levine

Facsimile: (212) 262-7402

 

[Remainder of page intentionally
left blank]

 

    	-5-

    	 

    

 

The undersigned have
executed this Terms Schedule under seal on and as of the date of the Term Loan Agreement.

 

	 	BORROWERS:
	 	 	 
	 	LAKELAND INDUSTRIES, INC.
	 	 	 
	 	By:	/s/ Christopher J. Ryan
	 	Name:	Christopher J. Ryan
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	LAKELAND PROTECTIVE WEAR INC.
	 	 	 
	 	By:	/s/ Christopher J. Ryan
	 	Name:	Christopher J. Ryan
	 	Title:	Assistant Secretary
	 	 	 
	 	Accepted in New York, New York:
	 	 	 
	 	LENDER:
	 	 	 
	 	LKL INVESTMENTS, LLC
	 	 	 
	 	By:	/s/ Steven Graham
	 	Name:	Steven Graham
	 	Title:	Treasurer

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