Document:

Exhibit

Exhibit 10.85

CONFIDENTIALTREATMENT REQUESTED 
CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION 

EXECUTION COPY
AGREEMENT FOR REIMBURSEMENT OF CAPITAL EXPENDITURE AND SERVICE FEES

BETWEEN

AESICA QUEENBOROUGH LIMITED

And

OPIANT PHARMACEUTICALS INC

relating to the development, manufacture and supply of a device capable of administering Nalmefene hydrochloride

Exhibit 10.85

Contents
CLAUSE
		
	1.
	DEFINITIONS AND INTERPRETATION               

		
	2.
	AESICA EXPENDITURE    

		
	3.
	PROMISE TO REIMBURSE

		
	4.
	PAYMENT

		
	5.
	DEFAULT INTEREST    

		
	6.
	REPAYMENT OF REIMBURSEMENT    

		
	7.
	CHANGES TO SCHEDULE 1    

		
	8.
	ASSIGNMENT    

		
	9.
	CONFIDENTIALITY    

		
	10.
	MISCELLANEOUS    

		
	11.
	GOVERNING LAW AND JURISDICTION    

		
	12.
	ENTIRE AGREEMENT    

Schedule 1:   Capital and Service Fee Expenditure
    

Exhibit 10.85

THIS AGREEMENT FOR REIMBURSEMENT OF CAPITAL EXPENDITURE AND SERVICE FEES IS MADE                        SEPTEMBER 7, 2018
BETWEEN

		
	(1)
	OPIANT PHARMACEUTICALS, INC., with offices at 201 Santa Monica Blvd., Suite 500, Santa Monica, California, 90401, USA (“Opiant”), and

		
	(2)
	AESICA QUEENBOROUGH LIMITED, a company incorporated and registered in England and Wales with company number 06350087 whose registered office is at Suite B Breakspear Park, Breakspear Way, Hemel Hempstead, Hertfordshire, England, HP2 4TZ (“Aesica ”).

BACKGROUND
		
	(A)
	Opiant and Aesica are parties to that certain Development Agreement dated on or about the date hereof (the “Development Agreement”) for the development manufacture and supply of a device capable of administering Nalmefene hydrochloride (“Nalmefene Finished Product”) 

		
	(B)
	In order to meet Opiant’s timelines for the commercial manufacture and commercial launch of the Nalmefene Finished Product, it may be necessary for Aesica and/or its Affiliate to incur certain capital expenditure and associated service fees before the parties negotiate a definitive agreement for the commercial supply of Nalmefene Finished Product (a “Supply Agreement”). 

		
	(C)
	The capital expenditure to be incurred by Aesica and/or its Affiliate comprises the Tooling Fees, the Equipment Fees and the Facility Alteration Fees (each as defined below).  In addition, Aesica will incur the Service Fees (as defined below).  Such total expenditure amounts to [***] unless the parties agree to revise the table at Schedule 1 in accordance with clause 7 below. 

		
	(D)
	In consideration for Aesica and/or its Affiliate incurring the Tooling Fees, Equipment Fees, Facility Alteration Fees and Service Fees, Opiant agrees to, upon the occurrence of certain events, reimburse Aesica for a portion of those costs as set forth in this agreement (“Reimbursement Agreement”).  

		
	(E)
	All capitalized terms used but not defined herein shall have the meaning given to them in the Development Agreement. 

 

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Exhibit 10.85

AGREED TERMS 
		
	1.
	DEFINITIONS AND INTERPRETATION   

		
	1.1
	In this Reimbursement Agreement, where the context so admits, the following words and expressions shall have the following meanings:

“Aesica Fault Termination” means those circumstances where Opiant terminates the Development Agreement pursuant to any of clauses 18.2(a) – 18.2(g) of the Development Agreement (inclusive); 
“Cumulative Amount” means the total amount of the Tooling Fees, Equipment Fees, Facility Alteration Fees and/or Service Fees (as appropriate) incurred by Aesica as at the relevant Quarter, such Cumulative Amounts being set out in the second, seventh, ninth and eleventh rows of the table attached at Schedule 1 (as such table may be updated from time to time by the Parties in accordance with clause 7), less any such Tooling Fees, Equipment Fees, Facility Alteration Fees and/or Service Fees that can be unconditionally cancelled by or refunded to Aesica as of the Trigger Date;   
“Development Agreement” has the meaning given to it in Recital (A);
“Effective Date” means the date of this Agreement;
“Equipment” means the metrology and spray analysis equipment, mold presses and equipment, filling and stoppering equipment and device assembly equipment required to be purchased by Aesica for the purposes of supporting the commercial manufacture of the Nalmefene Finished Product;
“Equipment Fees” means the amounts to be paid by Aesica on Equipment per Quarter as set out in the third, fourth, fifth and sixth rows of the table set out at Schedule 1 (as such table may be updated from time to time by the Parties in accordance with clause 7);  
“Facility Alterations” means the alterations to Aesica’s and/or its Affiliates’ facilities required to be undertaken by Aesica for the purposes of supporting the commercial manufacture of the Nalmefene Finished Product;   
“Facility Alteration Fees” means the amounts to be paid by Aesica on the Facility Alternations per Quarter as set out in the eighth row of the table set out at Schedule 1 (as such table may be updated from time to time by the Parties in accordance with clause 7);   
“Failure to Agree Commercial Supply” means circumstances where the Parties have not entered into a Supply Agreement despite having fulfilled all obligations set forth in Clause 9 of the Development Agreement;
“Force Majeure Termination” means those circumstances where either party has terminated the Development Agreement pursuant to clause 18.2(h) of the Development Agreement;

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Exhibit 10.85

“Nalmefene Finished Product” has the meaning given to it in Recital (A);
“Opiant Fault Termination” means those circumstances where Aesica terminates the Development Agreement pursuant to any of clauses 18.2(a) – 18.2(g) of the Development Agreement (inclusive); 
“Opiant No Fault Termination” means those circumstances where Opiant terminates the Development Agreement pursuant to clause 18.1 of the Development Agreement;
“Quarter” means each three (3) month period starting on 1 January, 1 April, 1 July and 1 October in each calendar year;
“Service Fees” means the amount of its labour costs per Quarter that Aesica has allocated to the project, as set out in the tenth row of the table set out at Schedule 1 (as such table may be updated from time to time by the Parties in accordance with clause 7);
“Supply Agreement” has the meaning given to it in Recital (B);
“Tooling” means the tooling required to be purchased by Aesica for the purposes of supporting the commercial manufacture of the Nalmefene Finished Product; 
“Tooling Fees” means the amounts to be paid by Aesica on Tooling as set out in the first row of the table set out at Schedule 1 (as such table may be updated from time to time by the Parties in accordance with clause 7);  
“Trigger Date” means the following:
		
	(a)
	Where there is a Failure to Agree Commercial Supply, the date of completion of the process set out in Clause 9 of the Development Agreement;

		
	(b)
	Where there is an Opiant Fault Termination, an Opiant No Fault Termination or a Force Majeure Termination, the date that such termination takes effect in accordance with the terms of the Development Agreement. 

		
	1.2
	A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality).

		
	1.3
	Unless the context otherwise requires, words in the singular shall include the plural and in the plural include the singular.

		
	1.4
	Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders.

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Exhibit 10.85

		
	2.
	AESICA EXPENDITURE

		
	2.1
	It is hereby acknowledged that in order to support commercialisation of the Nalmefene Finished Product, prior to negotiating a Supply Agreement with Opiant, Aesica agrees to:

		
	(a)
	purchase the Tooling and Equipment, 

		
	(a)
	incur the Service Fees, and

		
	(b)
	make the Facility Alterations. 

		
	3.
	PROMISE TO REIMBURSE

		
	3.1
	In consideration for Aesica purchasing the Tooling and Equipment, incurring the Service Fees and carrying out the Facility Alterations, Opiant agrees to reimburse the following amounts to Aesica:

		
	(a)
	In the event that there is a Failure to Agree Commercial Supply or a Force Majeure Termination either:

		
	(i)
	the total sum of the Cumulative Amounts of the Tooling Fees, Equipment Fees, Facility Alteration Fees and Services Fees allocated to the Quarter in which the Trigger Date occurs; or

		
	(ii)
	[***],

(whichever is lower).  
		
	(b)
	In the event that there is an Opiant Fault Termination or an Opiant No Fault Termination:

		
	(i)
	the total sum of the Cumulative Amounts of the Tooling Fees, Equipment Fees, Facility Alteration Fees and Service Fees allocated to the Quarter in which the Trigger Date occurs,

(the amounts requiring to be paid under clauses 3.1(a) and 3.1(b) above each being referred to as the “Reimbursement”).
		
	3.2
	For the avoidance of doubt, Opiant shall not be expected or required to reimburse any amounts in the event of an Aesica Fault Termination.  

		
	4.
	PAYMENT

		
	4.1
	Aesica shall be entitled to issue an invoice for that part of the Reimbursement that relates to Tooling Fees, Facility Alteration Fees and Service Fees from the Trigger Date, and Opiant shall pay that part 

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Exhibit 10.85

of the Reimbursement that relates to Tooling Fees, Facility Alteration Fees and Service Fees within 30 calendar days of the date of such invoice.  
		
	4.2
	In respect of that part of the Reimbursement that relates to Equipment Fees then, for the one-hundred and eighty (180) calendar day period following the Trigger Date, Aesica shall use Diligent Efforts (as defined in the Development Agreement) to sell the Equipment purchased with such Equipment Fees to a third party.  In the event that Aesica is able to sell any of the Equipment during such one-hundred and eighty (180) calendar day period then that portion of the Reimbursement that relates to Equipment Fees shall be reduced by the amount of proceeds generated from such sale. Following the expiry of the one-hundred and eighty (180) day period, Aesica shall issue an invoice to Opiant for the relevant Equipment Fees adjusted in accordance with this clause 4.2 and, if applicable, clause 3.1(a).

		
	4.1
	Aesica shall include with its invoice reasonable information and documentation (in sufficient detail, including without limitation any invoices, receipts, purchase orders or similar documentation relating to any portion of the Cumulative Amount) supporting the demand for reimbursement. Any payment due and owing by Opiant hereunder shall be paid by way of bank transfer to the bank account set out below (or such other bank account as Aesica may nominate in writing from time to time):

Bank:        Natwest Plc
Sort code:     536138
BIC (Swift):    NWBKGB2L
IBAN:        GB45 NWBK 5361 3830 3342 76
		
	5.
	DEFAULT INTEREST 

Interest shall accrue on a daily basis on the undisputed amounts payable by Opiant to Aesica hereunder from the date such amounts becomes due and payable in accordance with clause 4 until the date of actual payment at the rate of three percent (3%) per annum above or the maximum rate allowed by law, if less.
		
	6.
	REPAYMENT OF REIMBURSEMENT

		
	6.1
	Notwithstanding anything to the contrary set forth in this Reimbursement Agreement, if the Trigger Date arises solely from a Failure to Agree Commercial Supply and thereafter the parties enter into a Supply Agreement or the Nalmefene Finished Product is supplied as contemplated in Article 9 of the Development Agreement in the absence of a Supply Agreement, then Aesica shall, upon demand by and at the option of Opiant, with respect to any amounts paid by Opiant pursuant to clause 4, within 30 calendar days of the demand either repay such amounts to Opiant or credit such amounts against amounts Opiant owes to Aesica for the supply of Nalmefene Finished Product.

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Exhibit 10.85

		
	6.2
	If a Trigger Date occurs and Opiant makes payment of the Reimbursement pursuant to clause 4, and Aesica thereafter enters into a written agreement with a third party related to the development of the Unidose Xtra Device (as defined in the Development Agreement) for a specific purpose pursuant to which Aesica is able to use all or any portion of the Tooling, Equipment, Facility Alterations and/or work product resulting from the Service Fees (“a Third Party Agreement”), then:

		
	(a)
	If Aesica reaches the stage of first clinical supply under that Third Party Agreement (“the Repayment Trigger Date”) on or before the date that is [***] after the Trigger Date, Aesica shall repay to Opiant [***] of that portion of the corresponding Tooling Fees, Equipment Fees, Facility Alterations and/or Service Fees previously reimbursed by Opiant pursuant to clause 4 that Aesica has been able to utilise under the relevant Third Party Agreement; 

		
	(b)
	If the Repayment Trigger Date occurs after the date that is [***] after the Trigger Date but on or before the date that is [***] after the Trigger Date, Aesica shall repay to Opiant [***] of that portion of the corresponding Tooling Fees, Equipment Fees, Facility Alterations and/or Service Fees previously reimbursed by Opiant pursuant to clause 4 that Aesica is able to utilise under the relevant Third Party Agreement; and

		
	(c)
	If the Repayment Trigger Date occurs after the date that is [***] after the Trigger Date but on or before the date that is [***] after the Trigger Date, Aesica shall repay to Opiant [***] of that portion of the corresponding Tooling Fees, Equipment Fees, Facility Alterations and/or Service Fees previously reimbursed by Opiant pursuant to clause 4 that Aesica is able to utilise under the relevant Third Party Agreement.

Any such repayment shall be made by Aesica to Opiant within thirty (30) days after the occurrence of the Repayment Trigger Date, and Aesica shall provide with its payment reasonable information and documentation supporting the repayment amount (subject to any third party confidentiality obligations).  
		
	7.
	CHANGES TO SCHEDULE 1

Any changes to the estimated Tooling Fees, Equipment Fees, Facility Alteration Fees or Service Fees that either exceed £50,000 in respect of any one element or where the aggregate of the changes across all of the elements in any one Quarter exceeds £75,000 must be approved by Opiant in writing and in advance (such approval not to be unreasonably withheld or delayed).

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Exhibit 10.85

		
	8.
	ASSIGNMENT

Prior to the parties entering into a Supply Agreement, if any, this Reimbursement Agreement may only be assigned pursuant to (and in connection with) a permitted assignment of the Development Agreement and, after entering into the Supply Agreement, only pursuant to (and in connection with) an assignment of the Supply Agreement.  
		
	9.
	CONFIDENTIALITY

		
	9.1
	Article 21 (Confidentiality) of the Development Agreement is incorporated into and shall apply to the parties’ disclosure of Confidential Information (as defined in the Development Agreement) under this Reimbursement Agreement.

		
	10.
	MISCELLANEOUS

		
	10.1
	The waiver, express or implied, by any party of any right under this Reimbursement Agreement or any failure to perform or breach by another party shall not constitute or be deemed a waiver of any other right under this Reimbursement Agreement.

		
	10.2
	No amendment, change or addition hereto shall be effective or binding on any party unless reduced to writing and executed by all the parties for the time being.

		
	10.3
	Nothing in this Reimbursement Agreement shall constitute or be deemed to constitute a partnership between the parties or any of them, or a term of their employment.

		
	10.4
	Any notices given to a party under or in connection with this Reimbursement Agreement shall be in writing and shall be delivered by hand or by pre-paid first-class post or other next working day delivery service at its registered office and shall be deemed to have been received  

		
	(a)
	if delivered by hand, on signature of a delivery receipt

		
	(b)
	if sent by pre-paid first-class post or other next working day delivery service, at 9.00 am on the second Business Day after posting;

		
	10.5
	If at any time any provision of this deed is or becomes invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this deed shall not be affected or impaired thereby.

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Exhibit 10.85

		
	10.6
	Each party shall do, or procure the doing, of all reasonable acts and things, and execute, or procure the execution of, all documents, as may reasonably be required to give full effect to this Reimbursement Agreement. 

		
	10.7
	A person who is not a party to this Reimbursement Agreement shall not have any rights under or in connection with it by virtue of the Contracts (Rights of Third Parties) Act 1999. 

		
	10.8
	The right of the parties to terminate, rescind or agree any amendment, variation, waiver or settlement under this Reimbursement Agreement is not subject to the consent of any person that is not a party to this Reimbursement Agreement.

		
	11.
	GOVERNING LAW AND JURISDICTION

This Reimbursement Agreement shall be governed by the laws of the State of Delaware, excluding conflict of law rules. With respect to any dispute arising out of or in connection with this agreement the parties agree to exclusive jurisdiction and venue of (i) a United States federal court of competent jurisdiction sitting in the state of Delaware; or (ii) if no such court has jurisdiction, then the Delaware Superior Court and, if related to equity, the Delaware Court of Chancery.
		
	12.
	ENTIRE AGREEMENT

		
	12.1
	This Reimbursement Agreement, together with the Development Agreement, constitutes the entire agreement between the parties and supersedes and extinguishes all previous drafts, agreements, arrangements and understandings between them, whether written or oral, relating to the subject matter hereof.  

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Exhibit 10.85

This Agreement has been entered into on the Effective Date.

	
			
	Signed for and on behalf of 
AESICA QUEENBOROUGH LIMITED by:
.../s/ Manja Boerman........................
(signature) 

Manja Boerman..............................
 (print name)
Managing Director..............................
 (position)

	) 
) 
)
	Signed for and on behalf of 
OPIANT PHARMACEUTICALS INC by:

........./s/ Roger Crystal.................. 
(signature) 

.........Roger Crystal           .....................
(print name)

.........Chief Executive Officer.........
 (position)

	
		
	

 
  
	

 

	 
	 

	 
	

9

Exhibit 10.85

SCHEDULE 1

CAPITAL EXPENDITURE AND SERVICE FEES (£)

[***]

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED [***], IS FILED SEPARATELY 
WITH THE SECURITIES AND EXCHANGE COMMISSION 

10Blueprint

 

Exhibit 10.1

 

July
12, 2018

 

 

Mr.
Charles D. Roberson

6097
Clopton Drive

Greensboro,
NC 27455

 

Dear
Mr. Roberson:

 

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

 

1.            

THE PARTIES

 

This is
an Agreement, effective as of July 12, 2018 (the “Effective
Date”), between Charles D. Roberson, residing at 6097 Clopton
Drive, Greensboro, NC 27455 (hereinafter referred to as
“you”), and Lakeland Industries, Inc., a Delaware
corporation, with a principal place of business located at 3555
Veterans Memorial Highway, Suite C, Ronkonkoma, NY  11779-7410
(hereinafter the “Company”).

 

2.            

TERM

 

The
term of the Agreement shall be for an 18 month period, from the
Effective Date through and including January 11, 2020.

 

3.            

CAPACITY

 

You
shall be employed in the capacity of Chief Operating Officer of
Lakeland Industries, Inc. with such responsibilities and duties as
may be assigned to you from time to time by the
Company.

 

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

 

4.            

COMPENSATION

 

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

 

(a)          

A base annual
salary of $275,000 payable bi-weekly (the “Base
Salary”); and

 

(b)          

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

 

 

1

 

 

 

(c)          

Such benefits as
are provided from time to time by the Company to its officers and
employees; provided however that your annual vacation shall be for
a period of 4 weeks; and

 

(d)          

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

 

(e)          

Participation, as
determined in the discretion of the Compensation Committee of the
Board of Directors of the Company (the “Compensation
Committee”), in the Company’s 2017 Equity Incentive
Plan and any other restrictive stock, stock appreciation rights,
stock option or other equity plans of the Company as may become
effective; and

 

(f)          

if determined in
its sole discretion by the Compensation Committee, an annual bonus
in such amount, and based upon such parameters (if any), as
determined by the Compensation Committee (an “Annual
Bonus”).

 

5.            

NON-COMPETITION/SOLICITATION/CONFIDENTIALITY

 

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

 

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

 

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

 

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

 

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

 

You
understand and agree that the Company may not be adequately
compensated by damages for a breach by you of any of the covenants
and agreement contained in this Section 5, and that the Company
shall, in addition to all other remedies, be entitled to injunctive
relief and specific performance. You hereby affirmatively waive the
requirement that the Company post any bond. Nothing herein
contained will be construed as prohibiting the Company from
pursuing any other remedies available to it for such breach or
threatened breach, including the recovery of money damages, and if
the Company prevails, it shall also be entitled to the payment of
any and all reasonable fees, disbursements, and other charges of
the attorneys and collection agents, court costs, and all others
costs of enforcement. Likewise, if you prevail, you shall also be
entitled to the payment of any and all reasonable fees
disbursements and other charges of the attorneys and collections
agents, court costs, and all other costs of defense.

 

For
purposes of this Section 5, the term the “Company”
shall include all direct and indirectly owned subsidiaries of the
Company.

 

 

2

 

 

6.            

TERMINATION

 

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

 

(a) 

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

 

(b) 

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

 

(c) 

Disability.  This Agreement and your
employment shall terminate without any further obligation to you if
you become “totally disabled” (as defined below) other
than for payment by the Company of (i) the Accrued Obligations
though the last day of the month in which you are deemed to be
totally disabled and (ii) a pro-rata portion of the Annual Bonus,
if any, for the year of termination up to and including the date
you are deemed to be totally disabled as determined in good faith
by the Compensation Committee.

 

You
shall be deemed to be “totally disabled” if you are
unable, for any reason, to perform any of your duties and
obligations to the Company, with or without a reasonable
accommodation, for a period of 90 consecutive days or for periods
aggregating 120 days in any period of 180 consecutive
days.

 

(d) 

Cause.  The Company may terminate
your employment at any time for “Cause” (as defined
below) and this Agreement shall terminate immediately with no
further obligations to you other than the Company shall pay you,
within thirty days of such termination, the Accrued Obligations up
to the date of such termination for Cause.

 

(e) 

Termination by the Company Without Cause or by
you for Good Reason.  If, during the Term, the Company
terminates your employment without Cause or you terminate your
employment for Good Reason (as defined below), in either case,
other than within 18 months after a Change in Control (which is
covered by Subsection (f) below), you shall be entitled to receive
from the Company, subject to your continued compliance with the
restrictive covenants contained in Section 5 hereof and your
execution and non-revocation of a release of claims substantially
in the form attached hereto as Annex A, (i) the Accrued
Obligations payable within 15 days after the date of termination
(or, in the case of the prior year’s Annual Bonus, if any, at
such time such bonus is payable pursuant hereto), (ii) an
additional 12 months of your then current Base Salary, payable in
equal monthly installments beginning with the first payroll date
after the date on which the release of claims becomes effective and
can no longer be revoked, and (iii) a pro rata portion of the
Annual Bonus, if any, for the year of termination up to and
including the date of termination which shall be determined in good
faith by the Compensation Committee and paid at such time as such
bonus is payable pursuant hereto.

 

(f) 

Termination by the Company Without Cause or by
you for Good Reason within 18 Months After a Change in
Control. If, during the Term, the Company terminates your
employment without Cause or you terminate your employment for Good
Reason, in either such case, within 18 months after a Change in
Control (as defined below), you shall be entitled to receive from
the Company, subject to your continued compliance with the
restrictive covenants contained in Section 5 hereof and your
execution and non-revocation of a release of claims substantially
in the form attached hereto as Annex A, (i) the Accrued
Obligations payable within fifteen days after termination (or, in
the case of the prior year’s Annual Bonus, if any, at such
time such bonus is payable), (ii) a lump sum amount equal to 24
months of Base Salary in effect as of the date of termination of
employment or the year immediately prior to the Change in Control,
whichever is higher, and (iii) two times a target bonus amount, if
any, in effect as of the date of termination of employment. The
severance payments under sub-paragraphs (ii) and (iii) hereof shall
be paid with the first payroll date after the date on which the
release of claims becomes effective and can no longer be
revoked.

 

 

(g) 

Notwithstanding the
foregoing, if your severance payments payable hereunder constitute
nonqualified deferred compensation subject to 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), and the
period in which you must execute the release begins in one calendar
year and ends in another, the severance payments will be made in
the later calendar year.

 

(h) 

For purposes of
this Agreement:

 

(i)            

“Cause”
shall mean termination based upon: (A) your failure to
substantially perform your material duties and responsibilities
with the Company, after a written demand for such performance is
delivered to you by the Company, which identifies the manner in
which you have not performed your duties or responsibilities and a
cure period of 60 days, (ii) your commission of an act of fraud,
theft, misappropriation, dishonesty or embezzlement, (iii) your
conviction for a felony or pleading nolo contendere to a felony, (iv) your
willful and continuing failure or refusal to carry out, or comply
with, in any material respect any reasonable directive of the Chief
Executive Officer or the Board of Directors of the Company
consistent with the terms of this Agreement, or (v) your material
breach of any provision of this Agreement.

 

(ii)            

“Good
Reason” shall mean the occurrence of any of the following
events without your prior written consent:

 

 

3

 

 

(A)           

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

 

(B)           

a material
diminution in your authority or responsibilities from those
described herein,

 

(C)           

any material breach
of this Agreement by the Company, or

 

(D)           

a failure of the
Company to have any successor assume in writing the obligations
under this Agreement.

 

(iii)            

“Change in
Control” shall mean the occurrence of any of the following
events during the Term:

 

(A)           

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

 

(B)           

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

 

(C)           

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

 

(D)           

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

 

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

 

7.            

NOTICES

 

Any
notices required to be given under this Agreement shall, unless
otherwise agreed to by you and the Company, be in writing and by
certified mail, return receipt requested and mailed to the Company
at its headquarters at 3555 Veterans Memorial Highway, Suite C,
Ronkonkoma, NY 11779-7410, or to you at your home address at 6097
Clopton Drive, Greensboro, NC 27455 or at such other address as may
be provided by the Company or you.

 

8.            

ASSIGNMENT AND SUCCESSORS

 

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

 

 

4

 

 

10.            

WAIVER OR MODIFICATION

 

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

 

10.            

SEPARABILITY

 

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

 

11.            

GOVERNING LAW AND ARBITRATION

 

This
Agreement shall be interpreted and construed in accordance with the
laws of the State of New York without regard to its choice of law
principles.  Any dispute, controversy or claim of any kind
arising under, in connection with, or relating to this Agreement or
your employment with the Company shall be resolved exclusively by
binding arbitration.  Such arbitration shall be conducted in
New York City in accordance with the rules of the American
Arbitration Association (“AAA”) then in effect. 
The costs of the arbitration (fees to the AAA and for the
arbitrator(s)) shall be shared equally by the parties, subject to
apportionment or shifting in the arbitration award.  In
addition, the prevailing party in arbitration shall be entitled to
reimbursement by the other party for its reasonable
attorney’s fees incurred.  Judgment may be entered on
the arbitration award in any court of competent
jurisdiction.

 

12.            

ENTIRE AGREEMENT

 

This
Agreement and the Annex hereto constitutes the entire agreement
between the parties hereto with respect to the matters referred to
herein.

 

13.            

HEADINGS

 

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

 

 

 

 

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ON NEXT PAGE----------

 

5

 

 

 

AGREED
AND
ACCEPTED:             
        

 

 

 

By:            

/s/ Charles D. Roberson

Charles
D. Roberson

 

Date:                       

June 29,
2018

 

 

 

 

Lakeland
Industries, Inc.

 

By:            

/s/ Christopher J.
Ryan                                                                            

          

Christopher J.
Ryan, CEO and President

 

Date:                       

July 12,
2018

 

 

 

6

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