Document:

Exhibit
10.25

       

      NOTES TO:
PROFORMA UNAUDITED CONDENSED COMBINED STATEMENTS OF INCOME

      Fiscal
year ended January 31, 2008

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	 
      	 	
                                              Adjustment

                                              Needed

                                            	 
	 	 	 	 	 
	
                                              (1)
      Adjustment to reflect interest- Expense that would have been incurred on
      loan to finance purchase of Qualytextil

                                            	 	$	13,344	 
	 	 	 	 	 
	
                                              Interest
      rate assumed on proforma loan.  Used Lakeland’s actual weighted
      average interest rate for the period + 40 BPS which is the pricing
      adjustment created by the higher leverage resulting from the purchase
      price borrowing

                                            	 	 	5.91	%
	 	 	 	 	 
	
                                              Additional
      interest expense on purchase loan pro forma

                                            	 	$	789	 
	
                                              Tax
      rate - The Company considers the rate of 36% to be appropriate as it
      represents the applicable tax effect on interest expense incurred on the
      loan assumed in USD. The Company did not use the effective tax rate which
      is 32.3%, since the rate is affected by various factors not relevant to
      the current transaction including income from various foreign
      subsidiaries, deductions etc.

                                            	 	 	36	%
	 	 	 	 	 
	
                                              Tax
      benefit on additional interest expense

                                            	 	$	284	 
	
                                              (2)
      Adjustment to add back interest expense on Qualytextil books as the debt
      has been repaid as a result of this transactionExhibit
10.26

       

      NOTES TO:
PROFORMA UNAUDITED CONDENSED COMBINED STATEMENTS OF INCOME

      Three
months ended April 30, 2008

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 
      	 	
                                      Adjustment

                                      Needed

                                    	 
	 	 	 	 	 
	
                                      (1)
      Adjustment to reflect interest- Expense that would have been incurred on
      loan to finance purchase of Qualytextil

                                    	 	$	13,344	 
	 	 	 	 	 
	
                                      Interest
      rate assumed on proforma loan.  Used Lakeland’s actual weighted
      average interest rate for the period + 40 BPS which is the pricing
      adjustment created by the higher leverage resulting from the purchase
      price borrowing

                                    	 	 	3.93	%
	 	 	 	 	 
	
                                      Additional
      interest expense on purchase loan pro forma

                                    	 	$	131	 
	
                                      Tax
      rate - The Company considers the rate of 36% to be appropriate as it
      represents the applicable tax effect on interest expense incurred on the
      loan assumed in USD. The Company did not use the effective tax rate which
      is 25.0%, since the rate is affected by various factors not relevant to
      the current transaction including income from various foreign
      subsidiaries, deductions etc.

                                    	 	 	36	%
	 	 	 	 	 
	
                                      Tax
      benefit on additional interest expense

                                    	 	$	47	 
	
                                       (2)
      Adjustment to add back interest expense on Qualytextil books  as
      the debt has been repaid as a result of this transactionExhibit
10.27

      

      NOTES TO:
PROFORMA UNAUDITED CONDENSED COMBINED BALANCE SHEETS

      APRIL 30,
2008

       

      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	 	 	 	 	
                                  Transaction Amount

                                	 
	 
      	 	 	 	 	 	 
	
                                  (1)
      Record intitial purchase price paid by Lakeland

                                	 	 	 	 	$	13,344	 
	
                                  (1a)
      Estimated transaction costs:

                                	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 
	
                                  Brazil
      tax on incoming capital

                                	 	 	50	 	 	 	-	 
	 
      	 	 	 	 	 	 	 	 
	
                                  Estimated
      legal & accounting fees

                                	 	 	300	 	 	 	350	 
	
                                  (2)
      Record bank borrowing by Lakeland to cover cash out

                                	 	 	 	 	 	 	-	 
	
                                  (3)
      Record repayments of Qualytextil debt from purchase price
      proceeds

                                	 	 	 	 	 	 	(3,852	)
	 
      	 	 	 	 	 	 	 	 
	
                                  (4)
      Consolidation entries serve to eliminate the investment in subsidiaries
      against the underlying net assets acquired of $137,000. Such acquired
      assets are adjusted for estimated fair value of real estate at closing
      resulting in a revaluation of $110,000. The difference is reflected as
      goodwill. The Company is in the process of identifying intangible assets
      arising from this transaction. The identified intangible assets if any
      will be assigned values and amortized over their useful lives for assets
      with finite lives. Intangible assets identified with infinite lives will
      be tested for impairment annually. The goodwill of $9,595,000 will be
      adjusted accordingly for the intangible assets recognized during this
      process.

                                	 	 	 	 	 	 	
                                  (110

                                  (137

                                	
                                  )

                                  )
      

                                
	 
      	 	 	 	 	 	$	9,595Exhibit
10.28

      NOTES
TO: QUALYTEXTIL SA - reconciliation of Brazilian GAAP to US GAAP

      Balance
sheet as of April 30, 2008

      

      
        
          
            
              
                	
                        (a)

                      	 	
                        Inventory
      reserve

                      	 	 	 	 	 	(29,295	)
	 
      	 	
                        Inventory
      in transit (a-1)

                      	 	
                        (a-1)

                      	 
      	 	 	1,172,885	 
	 
      	 	
                        Total
      adjustment to inventory

                      	 	
                        (a)

                      	 	 	 	1,143,590	 
	
                        (b)

                      	 	
                        Tax
      accrual based on US GAAP income

                      	 	
                        (b)

                      	 	 	 	42,090	 
	
                        (c)

                      	 	
                        Legal
      fees not accrued under Brazilian GAAP

                      	 	 	 	 	 	53,343	 
	 
      	 	
                        Misc.
      labor accrual

                      	 	 	 	 	 	9,888	 
	 
      	 	
                        Installment
      plan taxes not accrued - outsourcing sales contractor

                      	 	 	 	 	 	271,353	 
	 
      	 	
                        Installment
      plan taxes not accrued - outsourcing labor contractor

                      	 	 	 	 	 	43,923	 
	 
      	 	
                        Sales
      representative commission not accrued

                      	 	 	 	 	 	15,457	 
	 
      	 	
                        Total
      adjustment to other debts

                      	 	
                        (c)

                      	 	 	 	393,964	 
	
                        (d)

                      	 	
                        Tax
      accrual based on US GAAP income

                      	 	 	 	 	 	(42,090	)
	 
      	 	
                        Various
      accruals per  (c ) above

                      	 	 	 	 	 	(393,964	)
	 
      	 	
                        Capital
      reserve reversal recognized as income

                      	 	 	 	 	 	47,944	 
	 
      	 	
                        Inventory
      reserve

                      	 	 	 	 	 	(29,295	)
	 
      	 	
                        Net
      adjustment to accumulated losses

                      	 	
                        (d)

                      	 	 	 	(417,405	)
	
                        (e)

                      	 	
                        Capital
      reserve reversal recognized as income

                      	 	
                        (e)

                      	 	 	 	(47,944	)
	
                        (f)

                      	 	
                        To
      reclassify as intangible assets for trademarks and
    tradenames

                      	 	 	 	 	 	 	 
	
                        (g)

                      	 	
                        To
      combine debt onto one line item

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]