Document:

Unassociated Document

    
      

      Exhibit
10.14

      SHARE
PLEDGE AGREEMENT

      

      

      This
Share Pledge Agreement (the “Agreement”) is made
as of May 13, 2008 and among:

      

      (a)           LAKELAND DO BRASIL EMPREENDIMENTOS E
PARTICIPAÇÕES LTDA., a limited company (sociedade empresária
limitada) duly organized and existing in accordance with the laws of
Brazil,  with its head office in the City of São Paulo, State of São
Paulo, at Av. Bernardino de Campos, 98, sala 09, 14o andar, CEP 04004-040,
enrolled with the Brazilian Taxpayers Roll of the Ministry of Finance (CNPJ/MF)
under no. 09.484.003/0001-12, herein duly represented in accordance with
its Articles of Association (together with its successors and permitted assigns,
“Grantor”);

      

      (b)           LAKELAND INDUSTRIES, INC., a
Delaware corporation, with its registered office at 701-07 Koehler Avenue,
Ronkonkoma, New York  11779, herein represented by its duly
authorized signatories (the “Borrower”);

      

      (c)           WACHOVIA BANK, National
Association, duly organized and existing in accordance with the laws of New
York, with its registered office at 12 East 49th Street, 43rd Floor,
New York, New York  10017, (the “Bank”), represented
in accordance with its corporate documents; and

      

      (d)           QUALYTEXTIL S/A, a corporation
(sociedade por ações),
duly organized and existing in accordance with the laws of Brazil, with its head
office in the City of Salvador, State of Bahia, at Rua Luxemburgo, s/n.o,
Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São
Caetano, enrolled with the Brazilian Taxpayers Roll of the Ministry of Finance
(CNPJ/MF) under no. 04.011.170/0001-22, herein represented in accordance with
its Charter Documents (together with its successors and permitted assigns,
“Qualytextil”);

      

      

      W I T N E S S E T H:

      

      WHEREAS,
pursuant to the Loan Agreement, dated July 7, 2005, as amended by the Third Modification Agreement and Reaffirmation of
Guarantee dated of even date hereof entered into by and between the
Borrower and the Bank (as amended, supplemented, restated or otherwise modified
and in effect from time to time the “Credit Agreement”), the Bank has agreed to
loan to Borrower a $ 30,000,000 revolving line of credit to be used for the
purchase by Grantor of the totality of shares of Qualytextil;

      

      WHEREAS,
after the execution of a Share Purchase Agreement by and among Borrower,
Qualytextil, its shareholders and Grantor, Grantor shall be the legal owner of
1,507,701 shares, being 1,492,624 shares of common stock and 15,077 shares of
Class A preferred stock, without par value, representing, in the aggregate, 100%
of the Capital Stock of the Qualytextil;

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      WHEREAS,
it is a condition precedent of the Credit Agreement that Borrower causes to be
created in favor of the Bank, a security interest over the totality of shares of
Qualytextil to secure Borrower’s obligations arising from the Credit
Agreement;

      

      WHEREAS
Qualytextil have agreed to pledge its totality of shares in all of its forms in
favor of the Bank;

      

      WHEREAS,
it is a condition precedent to the obligations of the Bank to grant the Loans
under the Credit Agreement that this Agreement shall have been executed and
delivered and shall be in full force and effect.

      

      

      NOW,
THEREFORE, in consideration of the foregoing premises and mutual covenants
contained herein, the parties hereto agree as follows:

      

      1.            
Defined
Terms.

      

      (a)           Capitalized
terms used and not otherwise defined in this Agreement are used herein with the
same meanings ascribed to such terms in the Credit Agreement. All terms defined
in this Agreement shall have the defined meanings contained herein when used in
any certificate or other document made or delivered pursuant hereto unless
otherwise defined therein.

      

      “Obligations" means
all debts, liabilities and obligations of any kind (monetary or otherwise,
whether absolute or contingent, matured or unmatured) of the Borrower now
existing or hereafter arising under or in connection with the Credit Agreement,
and the principal of and premium, if any, and interest (including interest
accruing during the pendency of bankruptcy or insolvency proceeding) on the
loans made to the Borrower thereunder.

      

      “Lien” means any
security interest, mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or otherwise), charge against or
interest in property, or other priority or preferential arrangement of any kind
or nature whatsoever, to secure payment of a debt or performance of an
obligation.

      

      "Person" means any
natural person, corporation, limited liability company, partnership, joint
venture, association, trust or unincorporated organization, governmental
authority or any other legal entity, whether acting in an individual, fiduciary
or other capacity.

      

      “Pledged Shares” shall
have the meaning ascribed to such term in Section 2(ii).

      

      “Secured Obligations”
shall have the meaning ascribed to such term in Section 2.

      

      "Secured Parties"
means the Bank and, in each case, its respective successors, transferees and
assigns.

      

      “Shares” shall have
the meaning ascribed to such term in Section 2(i).

      
        
           

        

        
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      2.        
    Pledge; Grant of Security
Interest.  In order to secure the full and prompt payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of all the Obligations, which, for the purposes of Article 1,424 of
the Brazilian Civil Code, are described in Schedule A hereto
(and which Borrower hereby acknowledges and recognizes for all legal purposes),
and all of the obligations of Borrower owing to the Bank (collectively, the
“Secured
Obligations”), Grantor hereby pledges to the Secured Parties, pursuant to
the provisions of Articles 1,451 et seq. of the Brazilian Civil Code (Federal
Law no. 10,406/02) and Article 39 of Federal Law no. 6,404/76 (the Brazilian
Corporations Act, as amended), the following, whether now existing or hereafter
acquired:

      

      (i)      
     1,507,701 of the shares held by Grantor, as
indicated in Schedule
B hereto (as amended from time to time), representing on the date hereof
the percentage of 100% of the Capital Stock of the Qualytextil (the “Shares”);

      

      (ii)           all
additional shares in the Capital Stock of the Qualytextil which may from time to
time be subscribed, purchased or acquired by Grantor in any manner (including,
but not limited to, any additional shares acquired by consolidation, merger,
exchange of stock, stock split, or corporate reorganization or otherwise),
whether or not in addition to, in substitution of, as a conversion of or in
exchange for any shares of the Qualytextil held by Grantor, together with all
options, warrants or rights of any nature whatsoever that may be issued or
granted by the Qualytextil to Grantor in respect of its interest in the
Qualytextil while this Agreement is in effect (“Additional Shares”
and, together with the Shares , the “Pledged Shares”);
and

      

      (iii)           all
profits, income, cash, rights, distributions, interests on capital and all other
amounts received, receivable or otherwise distributed to it upon any collection,
exchange, sale or other disposition of any of the Pledged Shares, and any
property into which any of the Pledged Shares is converted (including any
deposits, securities or negotiable instruments).

       

      3.           
 Registration of
the Pledge of the Pledged Shares .

      

      (a)           Grantor
shall (i) establish a first priority security interest over the Pledged Shares
by registering this Agreement, within 20 (twenty) days of the execution date
hereof (or of any Amendment, as the case may be), and any amendment to this
Agreement within 20 (twenty) days of the execution date thereof, with the
relevant Registry of Titles and Deeds (Cartório de Registro de Títulos e
Documentos) in Brazil, pursuant to Article 130 of Federal Law no.
6,015/73 (Public Registry Act, as amended), and (ii) promptly furnish to
the Bank evidence of such registration in form and substance reasonably
satisfactory to the Bank.All expenses incurred in connection with such
registrations shall be borne by the
Borrower.

      

      (b)           If
any Pledged Shares are held in custody by a third party, immediately after the
execution of this Agreement, or any issuance, receipt or acquisition of any
Additional Shares, Grantor shall furnish to the Bank a statement of the custody
account with the

      
        
           

        

        
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      custodian
of the Pledged Shares evidencing the first priority pledge created hereunder in
form and substance reasonably satisfactory to the Bank.

      

      

      4.        
   Representations and
Warranties. Grantor represents and warrants to each Secured Party as of
the date hereof, as of the date of any Amendment and as of the date of any
Disbursement or any other date that the following representations and warranties
are required to be made or are deemed to be made pursuant to this Agreement, to
the Credit Agreement or any other financing document, that:

      

      (a)           the
Grantor and the Qualytextil are corporations duly organized and validly existing
and in good standing under the laws of Brazil, and they have all requisite
corporate power, authority and legal right under the laws of such jurisdiction
to enter into and perform their obligations under this Agreement;

      

      (b)           No
consent, approval, authorization or other order of any Person is required for
(i) the legality, validity, perfection or enforcement of the security interest
created hereby; (ii) the execution and delivery of this Agreement by the
Borrower, by the Grantor and the Qualytextil, or (iii) for the exercise by the
Secured Parties of the remedies in respect of the Pledged Shares pursuant to
this Agreement, except (x) consents, approvals, authorizations or other orders
that shall be obtained as set forth herein and (y) as may be required in
connection with the disposition of the Pledged Shares by laws affecting the
offering and sale of securities generally;

      

      (c)           the
security interest created hereby will, upon completion of the filings and
registrations required by Section 3 hereof,
constitute a legal, valid, perfected and enforceable first priority security
interest in the Pledged Shares, securing the payment of the Obligations,
enforceable in accordance with the terms hereof against Grantor and all
creditors of Grantor, in each case; provided, however, that any
security interest to be created hereby on any Pledged Share which has not been
issued to, or received or acquired by, Grantor on or before the date hereof
shall be deemed to have been created, perfected and to be in full force only (i)
after such Pledged Shares is issued to, or received or acquired by, Grantor, and
(ii) on the date when the lien of the Secured Parties thereon, has been
registered as provided in Section 3 hereof, or
as may be in the future required by applicable law;

      

      (d)           (i)
Schedule B
hereto completely and accurately sets forth the number of Shares of the
Qualytextil owned by Grantor, as well as the corresponding amount in Reais of
the capital stock of the Qualytextil and (ii) Except for three (3) shares,
being one (1) share to each Director nominated by Grantor, for
appointment to the Board of Directors of Qualytextil in order to comply
with the requirements of Article 146 of the Brazilian Corporations
Law, Grantor is the legal and record owner of, and has title to, its shares
of the capital stock of the Qualytextil (as such share (quota) is set forth on
Schedule B
hereto), free of any and all Liens except for the Lien created
hereunder.  The Pledged Shares have been duly authorized and validly
issued in compliance with applicable securities laws and are fully paid and
nonassessable. There are no outstanding warrants,

      
        
           

        

        
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      options,
subscriptions, reserved shares or other contractual arrangements for the
purchase of the Pledged Shares, and there are no outstanding arrangements,
preemptive rights, redemption rights or any other rights or claims of any
character relating to the issuance, purchase, repurchase, redemption, transfer,
voting or preemptive rights with respect to the Pledged Shares that restrict the
transfer of, require the issuance of, or otherwise relate to the Capital Stock
of the Borrower, in either case that would affect the pledge hereunder;
and

      

      (e)           Grantor
 has all the requisite power and authority to execute, deliver and perform
this Agreement and to pledge the Pledged Shares.

      

      

      5.            Covenants. Borrower,
Grantor and the Qualytextil (as the case may be) covenant and agree
that:

      

      (a)           if
Grantor shall acquire (by purchase or otherwise) any Additional Shares at any
time after the date hereof, Borrower, Grantor and the Qualytextil shall promptly
(i) execute an amendment to this Agreement and deliver such amendment to the
Bank (each, after due execution by the Bank, an “Amendment”) in order
to extend the Lien created hereunder to such Additional Shares, and (ii) provide
the required filings and register the pledge of such Additional Shares in
accordance with the provisions of Section 3 hereof or
take such other actions as may otherwise be required by applicable law to extend
such Lien;

      

      (b)           Grantor
shall not (i) create, incur or permit to exist any Lien or option in favor of,
or any claim of any Person with respect to any of the Pledged Shares, or any
interest therein, except for the security interest created hereby, or (ii) sell,
assign, transfer, exchange, or otherwise dispose of the Pledged
Shares;

      

      (c)           Borrower,
Grantor and Qualytextil shall, upon request of the Bank, and as provided in the
Credit Agreement, enter into Amendments to this Agreement in form and substance
reasonably satisfactory to the Bank in order to include any other Person as a
Secured Party hereunder, and shall register
such Amendment in accordance with Section 3
hereof;

      

      (d)           Grantor
shall pay, before any fine, penalty, interest or cost attaches thereto, all
taxes, assessments and other charges or levies now or hereafter assessed or
levied against the Pledged Shares pledged by Grantor hereunder, and shall pay,
or cause to be paid, all claims which, if unpaid, would reasonably be expected
to become a Lien thereon, except for taxes, assessments and other charges,
levies or claims that are subject to a good faith contest;

      

      (e)           Grantor
and the Qualytextil shall, upon receipt of a notification of the Bank stating
that an Event of Default has occurred and is continuing, comply (notwithstanding
any notice or other communication to the contrary from any other Person) with
all reasonable written instructions received by it from the Bank in connection
with this Agreement;

       

      
        
           

        

        
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      (f)    Grantor
shall, promptly upon request, provide the Bank all information and evidence it
may reasonably request concerning the Pledged Shares to enable the Secured
Parties (directly or through any of their respective successors or assigns) to
enforce the provisions of this Agreement;

       

      
        
           

        

        
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      (g)    Grantor
shall not enter into, and shall make all reasonable efforts to prevent the
Qualytextil from entering into, any agreement that could reasonably be expected
to restrict or inhibit the Secured Parties’ rights or ability to sell or
otherwise dispose of the Pledged Shares or any part thereof after the occurrence
of an Event of Default.

       

      6.           
 Further
Assurance. Grantor shall execute such further documents and instruments
as may be required from time to time to enable the Secured Parties to protect
the rights created hereby in connection with the Pledged Shares or any part
thereof or the exercise by the Bank of any of the rights, powers, authorities
and discretions vested in it by this Agreement. In addition, Grantor will defend
the right, title and interest of the Secured Parties in and to the Pledged
Shares against the claims and demands of all Persons whomsoever.

       

      7.       
     Voting Rights after an Event
of Default. After the occurrence and during the continuation of an Event
of Default, Borrower shall not exercise any voting, consent and other rights in
respect of the Pledged Shares unless in accordance with the written instructions
of the Bank. Nothing contained in this Agreement shall be interpreted to require
Borrower to transfer voting, consent or subscription rights to the Secured
Parties. 

       

      8.             Registration of
Votes. The Qualytextil shall not register or implement any vote of
Grantor that would violate or be inconsistent with any of the terms of this
Agreement, or which would adversely affect the effectiveness, validity or
priority of the security interests of the Secured Parties.

       

      9.            
Remedies.

      

      (a)           Without
prejudice to the foregoing provisions, upon (i) the occurrence and during the
continuation of an Event of Default and (ii) delivery of a notification to
Grantor and the Borrower (notwithstanding any notice or other communication to
the contrary from any other Person), the Bank (directly or through the Bank, or
any of their respective agents, successors or assigns) is hereby irrevocably
authorized and entitled to dispose of, collect, receive, appropriate and/or
realize upon the Pledged Shares (or any part thereof) and may forthwith sell,
assign, give an option or options to purchase or otherwise dispose of and
deliver the Pledged Shares or any part thereof at market price, and upon market
terms and conditions, subject to Brazilian applicable law, irrespective of any
prior or subsequent notice to Grantor or the Borrower, in accordance with the
provisions set forth in Articles 1,433 Item IV of the Brazilian Civil Code. Any
notice by the Bank that an Event of Default has occurred and is continuing or
has ceased or has been waived shall be conclusive as against Borrower, Grantor
and all other third parties (notwithstanding any notice or other communication
to the contrary from any other Person).

      
        
           

        

        
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      (b)           In
accordance with Articles 684 and 1,433 Item IV of the Brazilian Civil Code and
as a means to comply with the obligations set forth herein, Grantor hereby
irrevocably appoints the Bank as its attorney-in-fact, and for such purpose
Grantor has executed and delivered to the Bank on the date hereof a
power-of-attorney in form and substance satisfactory to the Bank. Grantor agrees
to deliver an equivalent power-of-attorney to any successor Bank and otherwise
as necessary to ensure that the Bank has powers to carry out the acts and rights
specified herein.

      

      

      10.           Application of
Proceeds. Any monies received by any of the Secured Parties through the
exercise of remedies pursuant to Section 9(a) hereof
shall be applied in accordance with the terms of the Credit Agreement. After
payment in full of the Secured Obligations, any such monies so received in
excess of the Obligations shall be returned promptly to Borrower.

       

      11.           Amendments, etc. with
Respect to the Secured Obligations. Grantor and the Borrower shall remain
obligated hereunder, and the Pledged Shares shall remain subject to the first
priority security interests granted hereby, at all times until termination of
this Agreement pursuant to Section 15, without
limitation and without any reservation of rights against Grantor and the
Borrower, and without notice to or further assent by Borrower or the Grantor,
notwithstanding:

      

      (a)           any
change in the time, manner, place, amount or currency of payment of the
Obligations under any Financing Document;

      

      (b)           any
action (or failure to take any action) by the Secured Parties under or in
respect of the Credit Agreement in the exercise of any remedy, power or
privilege contained therein or at law, equity or otherwise, or waiver of any
remedy, power, privilege or extension of the time for performance of any
obligation under the Credit Agreement; and

      

      (c)           the
sale, exchange, waiver, surrender or release of any guaranty, right to setoff or
other collateral security at any time held by the Bank in its name or for the
benefit of the Bank for the payment of the Obligations.

       

      12.           Dividends and Events of
Default. For the purposes of Article 1,457 of the Brazilian Civil Code,
so long as no Event of Default has occurred and is continuing all dividends
payable in respect of the Pledged Shares shall be paid to the
Grantor.

       

      13.           Certain Waivers by Grantor
and the Borrower. No Secured Party shall have any obligation to protect,
secure, perfect or insure any Lien at any time held as security for the Secured
Obligations or any property subject thereto except as required by applicable law
with respect to any Pledged Shares.

      
        
           

        

        
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      14.           Pursuit of Rights and
Remedies against Grantor and the Borrower. When pursuing its rights and
remedies hereunder against Grantor and the Borrower, Secured Parties (directly
or through the Bank, or any of their respective agents, successors or assigns)
may, but shall be under no obligation (except as required by applicable law) to,
pursue such rights and remedies as it may have against any third party or
against any collateral security for or guaranty of the Secured Obligations or
any right of offset with respect thereto, and any failure by the Secured Parties
(directly or through the Bank, or any of their respective agents, successors or
assigns) to pursue such other rights or remedies or to collect any payments from
such third party or to realize upon any such collateral security or guaranty or
to exercise any such right to setoff, or any release of such third party or of
any such collateral security or guaranty or right of offset, shall not relieve
Grantor or the Borrower of any liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of applicable law, of the Bank.

       

      15.           Termination and
Release. Upon payment in full of the Secured Obligations, this Agreement
shall be terminated and the first priority security interests created hereby
shall be released, at the Borrower’s expense.  No release of this
Agreement, or of the Lien created and evidenced hereby, shall be valid unless
executed by the Bank.  Upon Borrower’s request and at the Borrower’s
expense, the Bank shall promptly execute and deliver to Borrower all documents
reasonably necessary to evidence such termination and release in accordance with
this Section
15.

       

      16.           Cumulative Remedies.
The rights, powers and remedies of the Secured Parties under this Agreement are
cumulative and shall be in addition to all rights, powers and remedies available
to the Secured Parties pursuant to the Credit Agreement and at law, in equity or
by statute and may be exercised successively or concurrently without impairing
the rights of the Secured Parties hereunder.

       

      17.           Waivers and
Amendments. This Agreement and its provisions shall only be modified,
amended, supplemented or waived with the express written consent of Grantor,
Borrower and the Bank.

       

      18.           Severability. If any
provision of this Agreement shall be held to be invalid, illegal or
unenforceable under applicable law, such provision shall be ineffective only to
the extent of such invalidity, illegality or unenforceability, and shall not
affect any other provisions hereof or the validity, legality or enforceability
of such provision in any other jurisdiction. To the extent permitted by
applicable law, the parties shall in good faith negotiate and execute an
Amendment to this Agreement to replace any such severed provision with a new
provision that (a) reflects their original intent and (b) is valid and binding.
The first priority security interest created thereby shall, to the extent permitted by applicable law,
constitute a continuing first priority Lien on and perfected first priority
security interest in the Pledged Shares, in each case enforceable against
Grantor in accordance with its terms.

      
        
           

        

        
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      19.           Authority of the
Bank. The Borrower and Grantor acknowledge that any action taken by or
not taken by the Bank hereunder shall be conclusively presumed to have been
taken or not taken by the Bank as attorney-in-fact and representative of the
Bank with full and valid authority to so act or refrain from acting in
accordance with the Credit Agreement, and the Borrower and Grantor shall be
under no obligation and shall have no right to make any inquiry respecting such
authority.

      

      20.           No Impairment of Other
Security Interests. The security provided for in this Agreement shall be
in addition to and shall be independent of every other security that the Secured
Parties (collectively or individually) may at any time hold for any of the
Obligations.

      

      21.           Complete Agreement;
Successors and Assigns. This Agreement is intended by the parties as the
final expression of their agreement regarding the subject matter hereof and as a
complete and exclusive statement of the terms and conditions of such
agreement.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and
assigns.

      

      22.           Governing Law;
Jurisdiction. This Agreement shall be governed by and construed and
interpreted in accordance with the laws of Brazil. The parties irrevocably
submit to the jurisdiction of the courts sitting in the City of São Paulo, State
of São Paulo, Brazil, any action or proceeding to resolve any dispute or
controversy related to or arising from this Agreement and the parties
irrevocably agree that all claims in respect of such action or proceeding may be
heard and determined in such courts, with the express waiver of the jurisdiction
of any other court, however privileged it may be.

      

      23.           No Duty on Bank’s
Part. The powers conferred on the Bank hereunder are solely to protect
the Secured Parties’ interests in the Pledged Shares and shall not impose any
duty upon the Bank to exercise any such powers. None of the Bank, its officers,
directors, employees or agents shall be responsible to Borrower or to the Grantor for any act or
failure to act hereunder, except to the extent caused by their willful
misconduct or gross negligence.

      

      24.           Notices. All notices
and other communications provided for hereunder shall be provided in accordance
with the Credit Agreement.

      

      25.           Specific Performance.
For the purposes hereof, the Bank, as representative of the Bank, may seek the
specific performance of the Secured Obligations, as provided in the Brazilian
Civil Procedure Code.

      

      26.           Language. This
Agreement is being executed in English and a sworn translation of this Agreement
shall be provided by Grantor for purposes of registry, pursuant to Section 3
hereof.

      

      

      [SIGNATURE
PAGE TO FOLLOW]

      
        
           

        

        
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      IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in
the presence of the undersigned witnesses.

      

      

      LAKELAND
DO BRASIL EMPREENDIMENTOS E PARTICIPAÇÕES LTDA.

       

      

      
        	 	
                By:

              	
                /s/ Jose Tavares
      Lucena

              
	 	
                Name:

              	
                Jose
      Tavares Lucena

              
	 	
                Title:

              	
                Administrator

              

      

      

      LAKELAND
INDUSTRIES, INC.

       

       

      
        	
                By:

              	
                /s/ Gary A.
      Pokrassa

              	
                By:

              	 
      
	
                Name:

              	
                Gary
      A. Pokrassa

              	
                Name:

              	 
      
	
                Title:

              	
                CFO

              	
                Title:

              	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                WACHOVIA
      BANK

              	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/ Roger
      Grossman

              	
                By:

              	 
      
	
                Name:

              	
                Roger
      Grossman

              	
                Name:

              	 
      
	
                Title:

              	
                Vice
      President

              	
                Title:

              	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                QUALYTEXTIL
      S/A

              	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/ Miguel G.
      Bastos

              	
                By:

              	
                /s/
      Elder Marcos Vieira da Conceicao

              
	
                Name:

              	
                Miguel
      G. Bastos

              	
                Name:

              	
                Elder
      Marcos Vieira da Conceicao

              
	
                Title:

              	
                CFO

              	
                Title:

              	
                CEO

              

      

       

       

      
        	
                WITNESSES:

              	 	 
      
	 
      	 	 
      
	
                 

              	 	 
      
	
                Name:

              	 	
                Name:

              
	
                ID:

              	 	
                ID:

              

      

      
        
           

        

        
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      SCHEDULE
A

      

      CONDITIONS
AND CHARACTERISTICS OF THE SECURED OBLIGATIONS

      

      

      1)  
TOTAL PRINCIPAL AMOUNT OF THE SECURED OBLIGATIONS

      

      A sum not
to exceed US$ 30,000,000.00 (thirty million United States dollars)

      

      
        2)  
INTEREST RATE OVER THE AMOUNT EFFECTIVELY DISBURSED:

      

      

      Based on
either LIBOR or LIBOR Market Index Rate, plus the Applicable Margin (equal to
the percentage set forth in the table based on Borrower’s Funded Debt to EBITDA
Ratio), more particularly described in the Second Amended and Restated
Promissory Note attached hereto as Schedule A.1

      

      3)  
MATURITY DATE OF INTEREST:

      

      Monthly
payments of interest only commencing June 2, 2008, final payment of all accrued
interest on July 7, 2010

      

      4)  
REPAYMENT OF THE PRINCIPAL AMOUNT:

      

      Final
payment of principal on July 7, 2010

      

      
        5)  
PENALTY IN AN EVENT OF DEFAULT:

      

      

      Interest
rate plus 3%.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      SCHEDULE
A.1

      

      SECOND
AMENDED AND RESTATED PROMISSORY NOTE

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      SCHEDULE
B

      

      DESCRIPTION
OF PLEDGED SHARES

      

      

      
        	
                Name

              	
                Number
      of Shares

              	
                %
      of Total Capital Stock (subject to
      rounding  adjustments

              
	
                Lakeland
      do Brasil Empreendimentos e Participações Ltda.

              	
                1,507,701
      shares, being 1,492,624 shares of common stock and 15,077 shares of Class
      A preferred stock, without par value

              	
                100%

              

      

       

       

    

    14Unassociated Document

    
      

    

    
      Exhibit
10.15

      EQUIPMENT
PLEDGE AND SECURITY AGREEMENT

      

      

      This
Equipment Pledge and Security Agreement (the “Agreement”) is made
as of May 13, 2008 and among:

       

      WACHOVIA BANK, NATIONAL
ASSOCIATION, duly organized and existing in accordance with the laws of
New York, with its registered office at 12 East 49th Street, 20th
Floor, New York, New York  10017, represented in accordance with
its corporate documents,(the “Bank”);

       

      QUALYTEXTIL S/A, duly
organized and existing in accordance with the laws of Brazil, with its
registered office in the City of Salvador, State of Bahia, at Rua Luxemburgo,
s/no, Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
São Caetano, Brazil, enrolled with the Brazilian Taxpayers Roll of the Ministry
of Finance (CNPJ/MF) under no. 04.011.170/0001-22, herein duly represented in
accordance with its Charter Documents, together with its successors and
permitted assigns (the “Qualytextil”)

      

      And as
Intervening Consenting Parties,

       

      LAKELAND DO BRASIL EMPREENDIMENTOS E
PARTICIPAÇÕES LTDA., a company duly organized and existing in accordance
with the laws of Brazil, with its registered office at Avenida Bernardino de
Campos, no 98, sala 09, 14o andar, São Paulo – SP, Brazil, enrolled with the
Brazilian Taxpayers Roll of the Ministry of Finance (CNPJ/MF) under no.
09.484.003/0001-12, herein duly represented in accordance with its Articles of
Association, together with its successors and permitted assigns (the “Lakeland do Brazil”);
and

      

      LAKELAND INDUSTRIES, INC, duly
organized and existing in accordance with the laws of New York, with its
registered office at 701-07 Koehler Avenue, Ronkonkoma, 11779, herein duly
represented by its Chief Financial Officer, Mr. Christopher
J. Ryan and Gary Pokrassa (the “Lakeland”);

      

      W I T N E S S E T H:

       

      WHEREAS,
pursuant to the to the Loan Agreement, dated July 7, 2005, as amended by the
Third Modification Agreement and Reaffirmation of Guaranty dated of even date
hereof entered into by and between Lakeland and the Bank (the “Credit
Agreement”), the Bank has agreed to loan to Lakeland a $ 30,000,000 revolving
line of credit to be used for the purchase by Lakeland do Brazil of the totality of
shares of Qualytextil (as amended, supplemented, restated or otherwise
modified and in effect from time to time, the “Credit
Agreement”);

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      WHEREAS
after the execution of a Share Purchase Agreement by and among Lakeland,
Lakeland do Brazil, Qualytextil, and its shareholders, Lakeland do Brazil shall
be the legal owner of 1,507,701 shares representing, in the aggregate, 100% of
the capital stock of Qualytextil;

      

      WHEREAS
it is a condition precedent of the Credit Agreement that Lakeland causes to be
created in favor of the Bank a security interest on the equipment described in
Annex I hereof (the “Equipment”) belonging to Qualytextil to secure Lakeland’s
obligations arising from the Credit Agreement;

      

      WHEREAS
Qualytextil, Lakeland do Brazil and Lakeland have agreed to pledge the Equipment
and all parts thereof in favor of the Bank;

      

      NOW,
THEREFORE, in consideration of the foregoing premises and mutual covenants
contained herein, the parties hereto agree as follows:

       

       

      ARTICLE
I - THE PLEDGE

       

      1.01.                   Pledge; Grant of Security
Interest. (a) In order to secure the full and prompt payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of all the obligations under the Credit Agreement, (and which
Lakeland hereby acknowledges and recognizes for all legal purposes), and all of
the obligations of Lakeland as stated in Section 2.01. below, Qualytextil hereby
unconditionally and irrevocably pledges to the Bank the Equipment described in
Annex I hereto, located at the places specified therein (each, a “Location”),
pursuant to articles 1,431 and following, especially articles 1,447 to 1,450 of
the Brazilian Civil Code and to other applicable legislation.

       

       

      ARTICLE
II – SECURED OBLIGATIONS

      

      2.01.
The Debt: For
the purposes of Section 1,424 of the Brazilian Civil Code, this Agreement shall
cover, fully and without restrictions, any and all debts and monetary
liabilities of Lakeland to the Bank in relation to the Credit Agreement and
irrespective of whether of such debts or liabilities: (i) are present or future;
(ii) are actual, prospective, contingent or otherwise; (iii) are owed or
incurred as principal, interest, fees, charges, taxes, duties or other imposts,
damages (whether for breach of contract or tort or incurred on any other
ground), losses, costs or expenses (including judicial costs and attorney’s
fees) or on any account; (v) are owed at stated maturity, upon prepayment,
following acceleration or otherwise; or (vi) comprise any combination of the
above (the “Secured
Obligations”), a summary of the terms and conditions of which follows
below.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (i)

              	
                Total principal amount of the
      secured obligations: A sum not to exceed US$ 30,000,000.00 (thirty
      million United States dollars).

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                Interest rate over the amount
      effectively disbursed: Based on either LIBOR or LIBOR Market Index
      Rate, plus the Applicable Margin (equal to the percentage set forth in the
      table based on Borrower’s Funded Debt to EBITDA Ratio), more particularly
      described in the Second Amended and Restated Promissory Note attached
      hereto as Annex II.

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                Maturity date of
      interest: Monthly payments of interest only commencing June 2,
      2008, final payment of all accrued interest on July 7,
  2010

              

      

      

      
        	
                 
      

              	
                (iv)

              	
                Repayment of the principal
      amount: Final payment of
      principal on July 7, 2010

              

      

      

      
        	
                 
      

              	
                (v)

              	
                Penalty in an event of
      default: Interest rate plus
      3%

              

      

      

      

      
        	
                 
      

              	
                ARTICLE
      III - REPRESENTATIONS AND
WARRANTIES

              

      

      

      3.01.         Representations
and Warranties.
Qualytextil represents and warrants to the Bank as of the date hereof, as of the
date of any Amendment and as of the date of any other date that the following
representations and warranties are required to be made or are deemed to be made
pursuant to this Agreement, to the Credit Agreement or any other financing
document, that:

      

      (a)            Qualytextil
is a corporation duly organized and validly existing and in good standing under
the laws of Brazil, and it has all requisite corporate power, authority and
legal right under the laws of such jurisdiction to enter into and perform their
obligations under this Agreement;

      

      (b)            Exception
made to consents and approvals set forth in this Agreement, no other consent,
approval, authorization or other order of any person is required for (i) the
legality, validity, perfection or enforcement of the security interest created
hereby; (ii) the execution and delivery of this Agreement by Qualytextil,
Lakeland do Brazil and Lakeland, or (iii) for the exercise by the Bank of the
remedies in respect of the Equipment pursuant to this Agreement, except (x)
consents, approvals, authorizations or other orders that shall be obtained as
set forth herein and (y) as may be required in connection with the disposition
of the Equipment by laws affecting the offering and sale of securities
generally;

      

      (c)            the
execution of this Agreement and the exercise by Qualytextil of its rights and
performance of its obligations hereunder do not and will not (i) violate any
applicable law, decrees, rules or regulations, (ii) violate any provisions of
Qualytextil’s By-Laws, and/or (iii) result in any breach of or default under any
contractual agreement to which Qualytextil is a party or by which Qualytextil or
its properties are bound;

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (d)            the
obligations assumed by Qualytextil in this Agreement are legal and valid
obligations binding on Qualytextil in accordance with the terms hereof and
enforceable against Qualytextil;

      

      (e)            Qualytextil
owns all right, title and interest in, to the Equipment and the pledge created
herein shall be a first priority security, ranking at all times ahead of all
other creditors with respect to the Equipment;

      

      (f)            the
Equipment is free of other security interests, liens, encumbrances and/or option
rights of other third parties;

      

      (g)            the
Equipment shall, at all times during such period as this Agreement is and
continues to be in full force and effect, be and remain the sole and exclusive
property of Qualytextil and shall not be assigned, sold or in any other manner
transferred to any third parties.

      

      

      ARTICLE
IV – OBLIGATIONS OF QUALYTEXTIL

      

      4.01 At
all times during such period as this Pledge over the Equipment is and continues
to be in full force and effect Qualytextil undertakes:

      

      (a)           to
keep the Equipment at its own expense in good conditions of repair and in
perfect operating conditions, ensuring that the value thereof is not affected,
except to normal wear and tear, to perform any relevant maintenance therefore
and to keep it free of any liens, encumbrances or charges, as well as to defend
it against all claims and legal procedures brought by any person other than the
Bank;

      

      (b)           to
pay out of its own funds or for its own account any taxes, charges, license
fees, duties, contributions, assessments and/or any other amounts due or to
become due with regard to the Equipment, obtaining release and/or discharge
thereof;

       

      (c)           to
assume the liabilities for any and all damages caused by the Equipment to third
parties and/or to Qualytextil assets, holding the Bank harmless of the
liabilities for any and all damages caused by the Equipment to said third
parties or assets;

      

      (d)           to
keep the Equipment at its own expense insured, in favor of the Bank, against
total risk, including, but not limited to damages caused by fire, flood,
earthquake, robbery, theft, embezzlement, vandalism and other reasonable causes
of damages, with reputable insurance companies and/or underwriters in a manner,
to an extent and on terms satisfactory to the Bank and customary for such kind
of assets in the Federative Republic of Brazil as well as to produce to the Bank
documentary evidence of compliance by Qualytextil with the obligations contained
herein within 30 (thirty) days from the date of execution of this Agreement and
annually, within 30 (thirty) days from every anniversary of the insurance
policy;

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (e)           to
appoint the Bank loss payee under the insurance policy/ies relating to the
Equipment and to order the insurance company/ies to pay to the Bank thereinafter
any insurance proceeds and any premium reimbursement;

      

      (f)           to
inform the Bank and the insurance company(ies) promptly of the occurrence of any
insurance event relating to the Equipment and, as the case may be, to keep the
Bank advised as to the progress of any claim invoked against Qualytextil or any
of its property. In the event of any loss, Qualytextil shall not take any step
for the purpose of entering into a compromise, settlement or arrangement with
any of its insurance companies or creditors without prior written consent of the
Bank;

      

      (g)           to
immediately inform the Bank when any of the insurance policies related to the
Equipment or provided in this Pledge is terminated, revoked or
nullified;

      

      (h)           to
maintain the Equipment in its premises located at the address indicated in Annex
I hereto and not to remove it therefrom without the prior written consent of the
Bank;

      

      (i)           to
allow the representatives of the Bank or a third person on behalf of the Bank to
inspect the Equipment and the premises where the Equipment is installed at any
reasonable time and on reasonable notice;

       

      4.02.         Negative Covenants.
During the term of this Agreement, Qualytextil undertakes not to:

       

      (a) sell,
rent or lease the Equipment or, save as the pledge over the Equipment created
herein, to create or permit to exist any charge, pledge, mortgage,
hypothecation, lien or other encumbrance of any nature whatsoever having the
effect of creating a security interest over the Equipment or to allow the
Equipment to be used in violation of any law, regulation or insurance policy
applicable to the Equipment. Losses or damages caused to the Equipment shall not
exempt Qualytextil of any of the obligations assumed hereunder;

       

      (b) alter
or reform the Equipment without the prior written consent of the Bank
(disregarding alterations and reforms in the ordinary course of
business);

       

      (c)
claim, ask or request, and not to file any lawsuit or judicial proceeding
against the bank in order to compel it to take any measure in relation to the
Equipment or asking for any indemnification due to damages occurred in the
Equipment, independently of the cause and size of the damage; and

       

      (d) take
or participate in any action or enter into any agreement which results or may
result in the loss of ownership and/or possession of the Equipment for so long
as the Equipment is subject to the lien created hereunder, or any other
transaction which could have the same result as a sale, transfer, encumbrance or
other disposal of the Equipment or which would, for any reason, be inconsistent
with the security interest of the Bank hereunder or defeat, impair, amend,
restrict or circumvent any right of the Bank hereunder.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      4.03.         Transfer of
Equipment. (a) In the event of an act of God or force majeure,
Qualytextil may transfer the Equipment affected by such acts of God or force
majeure, even to another place with storing conditions reasonably acceptable to
the Bank, in order to preserve and maintain the Equipment in good storage
conditions. In this event, Qualytextil shall, as soon as practicable, but no
later than five (5) Business Days after any such event, inform the Bank of the
place to which the Equipment has been transferred to (“New Location”), which
place may then be inspected by the Bank. If the Bank has reasonable grounds not
to approve the New Location, the Bank may inform Qualytextil of its objection
and request Qualytextil to remove and/or transfer the Equipment to another
location reasonably acceptable to the Bank, in which case Qualytextil shall
remove the Equipment to another location within the timeframes reasonably agreed
upon between the parties, at the expenses of Qualytextil.

       

      (b) In
the event the Equipment is transferred to the New Location pursuant to this
Section 4.03 (a), Qualytextil agrees to, as soon as practicable, but no later
than ten (10) Business Days after any such transfer, execute and deliver to the
Bank an amendment to this Agreement to update Annex I with the new location for
the Equipment.

       

      (c) Any
amendments to this Agreements to be executed pursuant to this Section 4.03 shall
be registered with the competent real estate registry(ies) and delivered to the
Bank as provided and within the timeframes established under Section
8.01(a).

       

      ARTICLE
V - RISK OF LOSS

      

      5.01.     Qualytextil shall bear all risk of
loss with respect to the Equipment. The injury to or loss of the Equipment,
either partial or total, shall not release Qualytextil from payment or other
performance hereof.

      

      5.02.     Qualytextil
shall bear the risk of loss to the extent of any deficiency in the effective
insurance coverage with respect to loss or damage to the Equipment. Upon the
occurrence of an Event of Default, Qualytextil hereby assigns to Bank the
proceeds of all property insurance covering the Equipment up to the amount of
the Secured Obligations and directs any insurer to make payments directly to
Bank.  Qualytextil hereby appoints Bank its attorney-in-fact, which
appointment shall be irrevocable and coupled with an interest for so long as
Secured Obligations are unpaid, to file proof of loss and/or any other forms
required to collect from any insurer any amount due from any damage or
destruction of the Equipment, to agree to and bind Qualytextil as to the amount
of said recovery, to designate payee(s) of such recovery, to grant releases to
insurer, to grant subrogation rights to any insurer, and to endorse any
settlement check or draft. Qualytextil agrees not to exercise any of the
foregoing powers granted to Bank without Bank's prior written
consent.

       

      ARTICLE
VI –DEFAULT

      

      6.01.        
Default. (a)
Upon the occurrence of an Event of Default (as defined in the Credit Agreement)
which is continuing, the Bank may, in its sole discretion, irrespective of any
prior or subsequent notice, sell, assign, transfer or in any other way dispose
of the Equipment pledged

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      hereunder
(the “Sale”),
at market price and upon market terms and conditions and subject to applicable
law, in or out of court, in a public or private transaction, and shall apply the
proceeds of such Sale thus received for the payment of the Secured Obligations
then due and unpaid, as well as for the payment or reimbursement of all other
costs and expenses incurred as a result of the Sale.

      

      (b) For
the purposes hereof, it is hereby agreed and understood that (i) in the event
the amount obtained from the Sale, after the reimbursement to the Bank of all
costs and expenses incurred in connection with the Sale, including Bank’s fees,
attorney’s fees and court costs and expenses, exceeds the amounts due under the
Secured Obligations, the balance shall be promptly returned to Qualytextil by
the Bank, and (ii) in the event the amounts obtained from the Sale are lower
than the amounts due under the Secured Obligations, Qualytextil shall remain
liable for the payment of the outstanding balance.

      

      6.02.       
Power of
Attorney. (a) For the purposes of this Article VI, Qualytextil hereby
irrevocably and irreversibly, as a condition to the pledge created hereunder,
appoints the Bank as its attorney-in-fact, pursuant to Article 684 and the sole
paragraph of Article 686 of the Brazilian Civil Code, to act solely, with broad
powers to, upon the occurrence of an Event of Default which is continuing carry
out, in the name and on behalf of Qualytextil, any acts necessary for the Sale,
including the execution of any documents required for the definitive transfer of
the Equipment pledge hereby, the Bank being authorized, at its sole discretion
and irrespective of Qualytextil’s consent, to delegate the powers granted herein
to any third party.

      

      (b) For
such purpose Qualytextil has executed and delivered to the Bank on the date
hereof an irrevocable power-of-attorney, substantially in the form of Annex III
and shall maintain such irrevocable power-of-attorney in full force and effect
until the Secured Obligations have been paid in full to the Bank to its
satisfaction.

      

      (c) Any
notice by the Bank that at such time an Event of Default has occurred or has
ceased shall be conclusive against Qualytextil and any other third
parties.

      

      

      ARTICLE
VII – TERM

      

      7.01          The
Pledge hereunder and the power-of-attorney granted herein will endure their
entirety and remain in full force and effect until the Secured Obligations have
been irrevocably and indefeasibly paid in full to the Bank and the Bank has no
further commitment to lend under the Credit Agreement.

      

      

      ARTICLE
VIII – MISCELLANEOUS

      

      8.01.         Registration.
(a) Qualytextil undertakes to, within fifteen (15) days of the date of execution
of this Agreement, register it or any amendments hereto with the competent Real
Estate Registry (Cartório de Registro de Imóveis) of the city(ies) where the
Equipment are located, provided that Qualytextil shall pay any and all costs,
expenses, fees and other charges

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      payable
in connection thereto, necessary for the perfection of this Agreement or any
amendments thereto. Qualytextil shall provide the Bank with one original
counterpart of this Agreement or any amendment thereto duly registered with the
competent Real Estate Registry within five (5) Business Days after its
accomplishment.

      

      (b)           For
registration purposes only, the amount of this Agreement is
R$599,555.00.

      

      8.02.         Deposit
of the Equipment - Qualytextil hereby irrevocably undertakes to act as
depository, in accordance with the provisions of the Brazilian Civil Code, of
the Equipment.

      

      8.03.        Cumulative
Remedies. The rights, powers and remedies of the Parties under this Agreement
are cumulative and shall be in addition to all rights, powers and remedies
available to the Parties pursuant to the Credit Agreement and at law, in equity
or by statute and may be exercised successively or concurrently without
impairing the rights of the Parties hereunder.

      

      8.04.         Waivers
and Amendments. This Agreement and its provisions shall only be modified,
amended, supplemented or waived with the express written consent of Qualytextil
and the Bank.

      

      8.05.         Severability.
If any provision of this Agreement shall be held to be invalid, illegal or
unenforceable under applicable law, such provision shall be ineffective only to
the extent of such invalidity, illegality or unenforceability, and shall not
affect any other provisions hereof or the validity, legality or enforceability
of such provision in any other jurisdiction.  To the extent permitted
by applicable law, the parties shall in good faith negotiate and execute an
Amendment to this Agreement to replace any such severed provision with a new
provision that (a) reflects their original intent and (b) is valid and
binding.  The first priority security interest created thereby shall,
to the extent permitted by applicable law, constitute a continuing first
priority Lien on and perfected first priority security interest in the
Equipment, in each case enforceable against Qualytextil in accordance with its
terms.

      

      8.06.         Complete
Agreement; Successors and Assigns. This Agreement is intended by the parties as
the final expression of their agreement regarding the subject matter hereof and
as a complete and exclusive statement of the terms and conditions of such
agreement.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and
assigns.

      

      8.07.         Counterparts.
This Agreement may be executed in several counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the
further exercise of such right or remedy.

      

      8.08.          Language.
This Agreement is being executed in English and a sworn translation of this
Agreement shall be provided by Qualytextil for purposes of registry, pursuant to
Section 8.01. above.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      8.09.         No
Novation. It is the express intent of the parties hereto that this Agreement is
in no way intended to constitute a novation of any of the terms of the Lon
Agreement.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      8.10          Intervening
and Consenting Parties. The Intervening and Consenting Parties hereby expressly
consents to and agrees with all of the terms and conditions of this Pledge
Agreement and undertakes to faithfully observe and fulfill any and all of its
obligations arising hereunder.

      

      8.11          Notices.
All notices and other communications provided for hereunder shall be provided in
accordance with the Credit Agreement.

      

      8.12.        
Clearance Certificates. Qualytextil hereby delivers to the Bank the following
clearance certificates which copies are attached hereto as Annex
IV:

      

      
        	
                 
      

              	
                (i)

              	
                Clearance
      Certificate (Certidão Positiva com Efeitos de Negativa de Débitos
      relativos às Contribuições Previdenciárias e às de Terceiros) issued by
      the Federal Revenue Service (Secretaria da Receita Federal);
      and

              

      

      
        	
                 
      

              	
                (ii)

              	
                Clearance
      Certificate (Certidão Conjunta Positiva com Efeitos de Negativa de Débitos
      relativos aos Tributos Federais e à Dívida Ativa da União), joinly issued
      by the Office of the Attorney-General of the National Treasury
      (Procuradoria da Fazenda Nacional) and the Federal Revenue Service
      (Secretaria da Receita Federal).

              

      

      

      8.13.         Governing
Law; Jurisdiction.  This Agreement shall be governed by and construed
and interpreted in accordance with the laws of Brazil.  The parties
irrevocably submit to the jurisdiction of the courts sitting in the City of São
Paulo, State of São Paulo, Brazil, any action or proceeding to resolve any
dispute or controversy related to or arising from this Agreement and the parties
irrevocably agree that all claims in respect of such action or proceeding may be
heard and determined in such courts, with the express waiver of the jurisdiction
of any other court, however privileged it may be.

      

      [SIGNATURE
PAGE TO FOLLOW]

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in
the presence of the undersigned witnesses.

      

       

      WACHOVIA
BANK

      

      
        	
                By:
      /s/ Roger
      Grossman

              	 
      	
                By:
      _____________________________

              
	
                Name:
      Roger Grossman

              	 
      	
                Name:

              
	
                Title:
      Vice President

              	 
      	
                Title:

              

      

      

      QUALYTEXTIL
S.A.

      

      
        	
                By:
      /s/ Miguel G.
      Bastos

              	 
      	
                By:
      /s/ Elder Marcos
      Vieira da Conceicao

              	 
      
	
                Name:
      Miguel G. Bastos

              	 
      	
                Name:
      Elder Marcos Vieira da Conceicao

              	 
      
	
                Title:
      CFO

              	 
      	
                Title:
      CEO

              	 
      

      

      

      LAKELAND
INDUSTRIES, INC.

      

      
        	 
      	
                By:
      /s/ Gary A. Pokrassa

              
	 
      	
                Name:
      Gary A. Pokrassa

              
	 
      	
                Title:   CFO

              

      

      

      LAKELAND
DO BRASIL EMPREENDIMENTOS E PARTICIPAÇÕES LTDA.

      

      

      By: /s/ Jose Tavares
Lucena

      Name:
Jose Tavares Lucena

      Title:
Administrator

      

      

      
        	
                WITNESSES:

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                _________________________________

              	 
      	
                _________________________________

              
	
                Name:

              	 
      	
                Name:

              
	
                ID:

              	 
      	
                ID:

              

      

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      ANNEX
I

      

      DESCRIPTION
AND LOCATION OF THE EQUIPMENT

      

      

      Invoice No
1255

      

      
        	
                Description

              	
                Quantity

              	
                Unitary
      Amount (R$)

              	
                Total
      Amount (R$)

              	
                Location

              
	
                Cleaning
      Beny Machine with 01 head (Máquina de Limpeza de 01 cabeça
      Beny)

              	
                01

              	
                4.460,00

                 

              	
                4.460,00

                 

              	
                City of Salvador, State of Bahia, at Rua Luxemburgo, s/no,
      Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
      São Caetano, Brazil)

              
	
                Cleaning Beny Machine with 01 head (Máquina de Limpeza de 01
      cabeça Beny)

              	
                06

              	
                4.460,00

                 

              	
                26.760,00

              	
                City of Salvador, State of Bahia, at Rua Luxemburgo, s/no,
      Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
      São Caetano, Brazil)

              
	
                Passante
      Machine with Refilador Nissin (Máquina de Passante com Refilador
      Nissin)

              	
                01

              	
                5.050,00

              	
                5.050,00

              	
                City of Salvador, State of Bahia, at Rua Luxemburgo, s/no,
      Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
      São Caetano, Brazil)

              
	
                12 Needles Machine Siruba (Máquina 12 Agulhas
      Siruba)

              	
                02

              	
                5.361,00

              	
                10.722,00

              	
                City of Salvador, State of Bahia, at Rua Luxemburgo, s/no,
      Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
      São Caetano, Brazil)

              
	
                Bud Machine Special Series SS
      373 (Máquina Botão Série Special SS 373)

              	
                01

              	
                4.350,00

              	
                4.350,00

              	
                City of Salvador, State of Bahia, at Rua Luxemburgo, s/no,
      Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
      São Caetano, Brazil)

              
	
                Caseadeira
      Machine Special Series (Máquina Caseadeira Série
      Special)

              	
                01

              	
                9.561,00

              	
                9.561,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Electronic
      Machine Travetti Star Series 1201 (Máquina Travetti Eletrônica Série Star
      1201)

              	
                01

              	
                12.000,00

              	
                12.000,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              

      

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      
        	
                Left
      Arm Machine Special Series 2605 (Máquina Braço Esquerda Série Special
      2605)

              	
                01

              	
                5.350,00

              	
                5.350,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Filigrana
      Machine Star Series 5x4 Velcro
      (Máquina Filigrana Servi Star 5x4 Velero)

              	
                01

              	
                14.861,00

              	
                14.861,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Cut
      Machine – Machine 30 (Máquina Cortar Máquina 30)

              	
                01

              	
                8.000,00

              	
                8.000,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Triple
      Transp.
      Machine 2 Needles SS 20606 (Máquina Transp. Triplo 2 agulhas SS
      20606)

              	
                01

              	
                5.050,00

              	
                5.050,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Pneumatic
      Machine Pocket Crease (Máquina Vincar Bolso Pneumática)

              	
                01

              	
                9.000,00

              	
                9.000,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Bore
      Tissue Machine 02 Columns (Máquina Furar Tecido 02
Colunas)

              	
                01

              	
                1.401,00

              	
                1.401,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Column
      Machine 02 Needles SS 8820 (Máquina Coluna 02 Agulhas SS
    8820)

              	
                01

              	
                4.261,00

              	
                4.261,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Sloping
      Machine – North Metal 02 Knives (Máquina Viés–Metal Norte 02
      Facas)

              	
                01

              	
                2.040,00

              	
                2.040,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              

      

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      
        	
                Superior
      Trasp. Interloq. Machine Siruba (Máquina Interlock. Transp.
      Superior Siruba)

              	
                01

              	
                5.017,00

              	
                5.017,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              

      

      

      

      Invoice No
1257

      

      
        	
                Description

              	
                Quantity

              	
                Unitary
      Amount (R$)

              	
                Total
      Amount (R$)

              	
                Location

              
	
                Arm
      Machine 30[x]
      Global (Máquina de Braço 3[x] Global)

              	
                01

              	
                7.060,00

              	
                7.060,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Electronic
      Straight Machine Star Series (Máquina Reta Eletrônico Sun
      Star)

              	
                01

              	
                4.253,00

              	
                4.253,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Sheath
      Machine Special Series (Máquina de Bainha Sun Special)

              	
                01

              	
                10.184,00

              	
                10.184,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Straight
      Machine Special Series  SS 618B (Máquina Reta Sun Special SS
      618B)

              	
                22

              	
                1.553,00

              	
                34.166,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Waistband
      Machine Special Series SS 6908 (Máquina de Cós Sun Special SS
      6908)

              	
                01

              	
                5.684,00

              	
                5.684,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Electronic
      Straight Machine Big [x]
      (Máquina Reta Eletrônica [xx]
      Grande)

              	
                02

              	
                4.153,00

              	
                8.306,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      
        	
                Straight
      Conventional Machine Big [x]
      (Máquina Reta Convencional [xx] Lança Grande)

              	
                07

              	
                1.553,00

              	
                10.871,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Interlock
      Machine Special Series SS 7705 (Máquina Interlock Sun Special SS
      7705)

              	
                04

              	
                1.803,00

              	
                7.212,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Electronic
      Backstitch Machine Star Series [x]
      (Máquina Pesponto Eletrônico Sun Star [xx])

              	
                05

              	
                8.541,00

              	
                42.705,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                [x]
      Machine Special Series SS 7703 (Máquina Overlock Sun Special SS
      7703)

              	
                04

              	
                1.783,00

              	
                7.132,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Arm
      Machine 3[x]
      2[x]
      Nissin (Máquina de Braço 30[x]
      2[x]T Nissin)

              	
                05

              	
                8.303,00

              	
                41.515,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Electronic
      [x]
      Machine 20[x]
      1800 (Máquina [xx]
      Eletrônico 20[xx]
      1800)

              	
                03

              	
                9.303,00

              	
                27.909,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Conventional
      Backstitch Machine Big [x] SS 875 (Máquina Pesponto Conv.
      [xx] Lança
      Grande SS 875)

              	
                10

              	
                3.953,00

              	
                39.530,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Máquina
      [xx] com [xx] 4 Lts. S. Special (Máquina Ferro com [xx] 4 Lts. S.
      Special)

              	
                03

              	
                1.803,00

              	
                5.409,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              

      

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      
        	
                Waistband
      Machine Siruba H008 (Máquina Cós Siruba H008)

              	
                01

              	
                4.103,00

              	
                4.103,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Straight
      Bitter Back Machine Siruba (Máquina Reta com Refilador
    Siruba)

              	
                01

              	
                2.000,00

              	
                2.000,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              

      

      

      

      Invoice No
1258

      

      
        	
                Description

              	
                Quantity

              	
                Unitary
      Amount (R$)

              	
                Total
      Amount (R$)

              	
                Location

              
	
                Cut
      Machine 6 inches Km (Máquina de corte Km 6 polegadas)

              	
                01

              	
                6.281,45

              	
                6.281,45

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Cut
      Machine 8 inches Km (Máquina de corte Km 8 polegadas)

              	
                01

              	
                6.325,46

              	
                6.325,46

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Backstitch
      Machine [x]
      SS 624OB (Máquina [x] DISL
      55624OB)

              	
                09

              	
                3.953,00

              	
                35.577,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Closing
      Arm Machine Special Series (Máquina de Fechamento Braço S.
      Special)

              	
                02

              	
                8.000,00

              	
                16.000,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              

      

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      
        	
                Closing
      Machine Special Series 2[x]
      (Máquina de Fechamento S. Special 20 [x]

              	
                01

              	
                6.500,00

              	
                6.500,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Straight
      Machine Special Series 6150M (Reta Sun Special 6150M)

              	
                01

              	
                1.100,00

              	
                1.100,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Straight
      Machine with big [x]
      Special Series 6150B (Reta com Lança Grande S. Special
      6150[x])

              	
                20

              	
                1.553,00

              	
                31.060,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              

      

      

      

      Invoice No
1259

      

      
        	
                Description

              	
                Quantity

              	
                Unitary
      Amount (R$)

              	
                Total
      Amount (R$)

              	
                Location

              
	
                Cleaning
      Machine 01 Head (Máquina de Limpeza 1 cabeça)

              	
                03

              	
                4.460,00

              	
                13.380,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Straight
      Electronic Machine Big [x]
      Siruba (Máquina Reta Eletro Lança Grande Siruba)

              	
                01

              	
                4.153,00

              	
                4.153,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Interlock
      Machine [x]
      10 mm [x]
      (Máquina Interlock [x] 10 MM Pesada)

              	
                04

              	
                1.803,00

              	
                7.212,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              

      

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      
        	
                Overlock
      Machine [x]
      Medium (Máquina Overlock INDL. Média)

              	
                02

              	
                1.783,00

              	
                3.560,00

              	
                City of Salvador, State of Bahia, at Rua Luxemburgo, s/no,
      Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
      São Caetano, Brazil)

              
	
                Arm Machine 3[x] 2[x] Nissin (Máquina Braço Nissin 3
      [x] 2 [x])

              	
                04

              	
                8.303,00

              	
                33.212,00

              	
                City of Salvador, State of Bahia, at Rua Luxemburgo, s/no,
      Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
      São Caetano, Brazil)

              
	
                Conventional Backstitch Machine [x]
      (Máquina Pesponto DISL Convencional Lança Grande)

              	
                05

              	
                3.593,00

              	
                19.765,00

              	
                City of Salvador, State of Bahia, at Rua Luxemburgo, s/no,
      Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
      São Caetano, Brazil)

              
	
                [x]
      Machine Special Series 4 Litters Feno ([x] Serie Special 4 LTS
      Ferro)

              	
                03

              	
                1.803,00

              	
                5.409,00

              	
                City of Salvador, State of Bahia, at Rua Luxemburgo, s/no,
      Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
      São Caetano, Brazil)

              
	
                Straight
      Machine [x]
      (Máquina Reto [x] 2 [x])

              	
                13

              	
                1.553,00

              	
                20.189,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              
	
                Straight
      Bitter Back Machine Siruba (Máquina Reta com refilador
    Siruba)

              	
                02

              	
                2.000,00

              	
                4.000,00

              	
                City
      of Salvador, State of Bahia, at Rua Luxemburgo, s/no, Loteamento Granjas
      Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83, São Caetano,
      Brazil)

              

      

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      ANNEX
II

      

      SECOND
AMENDED AND RESTATED PROMISSORY NOTE

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      ANNEX
III

      

       

      POWER
OF ATTORNEY

       

       

      QUALYTEXTIL S/A, A company
duly organized and existing in accordance with the laws of Brazil, with its
registered office in the City of Salvador, State of Bahia, at Rua Luxemburgo,
s/no, Loteamento Granjas Rurais, Presidente Vargas, Quadra O, Lotes 82 and 83,
São Caetano, Brazil, enrolled with the Brazilian Taxpayers Roll of the Ministry
of Finance (CNPJ/MF) under no. 04.011.170/0001-22, herein duly represented IN
ACCORDANCE WITH ITS Charter Documents, together with its successors and
permitted assigns (the “Qualytextil”) hereby irrevocably and irreversibly
appoints WACHOVIA BANK,
duly organized and existing in accordance with the laws of New York, with its
registered office at 12 East 49th Street, 20th Floor, New York, New
York  10017, represented in accordance with its corporate documents
(the “Bank”), as its attorney-in-fact to act in its name and place, with the
following powers:

       

      

      
        	
                (a)

              	
                upon
      the occurrence of an Event of Default which is continuing (as defined in
      the Credit Agreement), to sell, assign, transfer or in any other way
      dispose of all or part of the Equipment pledged to the Bank pursuant to
      the Equipment Pledge and Security Agreement entered into between the Bank
      and Qualytextil on May 13, 2008 (as from time to time amended, the “Equipment Pledge and
      Security Agreement”), at market prices and upon market terms and
      conditions and subject to applicable law irrespective of any prior or
      subsequent notice to Qualytextil with respect thereto, in accordance with
      the provisions set forth in the Equipment Pledge and Security Agreement
      and in Article 1,433, Item IV, and Article 1,435, Item V, of the Brazilian
      Civil Code, and apply the proceeds thus received for the payment of the
      Secured Obligations the due and unpaid as well for the payment or
      reimbursement of all other costs and expenses incurred as a result of such
      sale, being vested with all necessary powers incidental thereto,
      including, without limitation, the power and authority to execute transfer
      documents, including discharge documentation with respect to the
      Equipment, to purchase foreign currency and make all remittances abroad,
      to sign any necessary foreign exchange contract with financial
      institutions in Brazil that may be required to such remittances and to
      represent the Grantor before the Central Bank of Brazil, financial
      institutions, private and public law legal entities and any Brazilian
      governmental authority when necessary to accomplish the purpose of the
      Equipment Pledge and Security Agreement;
and

              

      

      

      
        	
                (b)

              	
                upon
      the occurrence of an Event of Default which is continuing, to take any
      action and to execute and deliver any instrument consistent with the terms
      of the as deemed necessary or advisable to accomplish the purpose of the
      Equipment Pledge and Security
Agreement.

              

      

       

      Any
notice by the Bank that at such time an Event of Default has occurred and is
continuing shall be conclusive against Qualytextil and all other third parties.
Capitalized terms used, but not defined herein, shall have the meaning ascribed
to them in the Credit Agreement and/or in the Equipment Pledge and Security
Agreement. The powers granted herein are in 

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      addition
to the powers granted by the Bank in the Equipment Pledge and Security Agreement
and not to cancel or revoke any of such powers. This power of attorney is
irrevocable and is granted as a condition to the Equipment Pledge and Security
Agreement and as a means to comply with the obligations set forth therein, in
accordance with the Article 684 and the sole paragraph of Article 686 of the
Brazilian Civil Code, and shall be valid and effective until The Bank has
receives full payment of the obligations secured by the Equipment Pledge and
Security Agreement to its satisfaction. The Bank may delegate the power granted
through this power of attorney.

       

      Qualytextil
has caused its duly authorizes representatives to execute this power of attorney
on may 13, 2008.

      

       

      QUALYTEXTIL
S/A

       

      

      
        	
                By:
      /s/ Miguel G.
      Bastos

              	 
      	
                By:
      /s/ Elder Marcos
      Vieira da Conceicao

              
	
                Name:
      Miguel G. Bastos

              	 
      	
                Name:
      Elder Marcos Vieira da Conceicao

              
	
                Title:
      CFO

              	 
      	
                Title:
      CEO

              

      

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      ANNEX
IV

      

       

      CLEARANCE
CERTIFICATES

       

    

     

    22

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