Document:

ex10-1.htm

    Exhibit
10.1

    
 

    SCHEDULE

    to
the

    MASTER
AGREEMENT

    dated as
of September 19, 2008 between

    WACHOVIA BANK, NATIONAL
ASSOCIATION (“Party A”)

    and LAKELAND INDUSTRIES, INC.
(“Party B”)

    

    
      	
              Part
      1.    

            	
              Termination
      Provisions

            

    

    

    
      	
              (a)

            	
              “Specified Entity” means
      each party’s Affiliates for purposes of Section
  5(a)(v).

            

    

    

    
      	
              (b)

            	
              “Specified Transaction”
      has its meaning as defined in Section
14.

            

    

    

    
      	
              (c)

            	
              “Cross Default” applies
      to both parties. With respect to Party B, “Cross Default” is amended by
      inserting at the end of Section 5(a)(vi): “or (3) any default, event of
      default or other similar condition or event (however described) under any
      existing or future agreement or instrument relating to any loan or
      extension of credit from Party A (or any of its Affiliates) to Party B
      (whether or not anyone else is a party
  thereto).”

            

    

    

    “Specified Indebtedness” means
any obligation (whether present, future, contingent or otherwise, as principal
or surety or otherwise) in respect of borrowed money or relating to the payment
or delivery of funds, securities or other property (including, without
limitation, collateral), other than indebtedness in respect of any bank deposits
received in the ordinary course of business by any foreign branch of a party the
repayment of which is prevented, hindered or delayed by any governmental or
regulatory action or law unrelated to the financial condition or solvency of
such party or that foreign branch.

    

    “Threshold Amount” means, with
respect to Party A, an amount (including its equivalent in another currency)
equal to the higher of $10,000,000 or 2% of its stockholders’ equity as
reflected on its most recent financial statements or call reports, and with
respect to Party B, any amount of Specified Indebtedness.

    

    
      	
              (d)

            	
              “Credit Event Upon
      Merger” applies to both
parties.

            

    

    

    (e)           “Automatic Early Termination”
does not apply to either party.

    

    
      	
              (f)

            	
              Payments on Early
      Termination.  Except as otherwise provided herein,
      “Market Quotation” and the “Second Method” apply, provided that with
      respect to the following types of Transactions, a Market Quotation shall
      not be determined or included under clause (a) of the definition of
      Settlement Amount, and instead a “Loss” shall be determined and included
      under clause (b) of the definition of Settlement Amount with respect to
      the following types of Transactions: (i) any FX Transactions and Currency
      Option Transactions, and (ii) any Transactions which are commodity swaps,
      commodity options, commodity forwards or any other commodity derivative
      transactions.

            

    

    

    In the
case of any Terminated Transaction that is, or is subject to, any unexercised
option, the words “economic equivalent of any payment or delivery” appearing in
the definition of “Market Quotation” shall be construed to take into account the
economic equivalent of the option.

    

    
      	
              (g)

            	
              “Termination Currency”
      means U.S. Dollars.

            

    

    

    
      	
              (h)

            	
              “Additional Termination
      Event” does not apply to either
party.

            

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
      	
              Part
      2.    

            	
              Tax
      Representations

            

    

    

    
      	
              (a)

            	
              Payer Tax
      Representations.  For the purpose of Section 3(e) of this
      Agreement, each party makes the following
  representation:

            

    

    

    It is not
required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, of any Relevant Jurisdiction to make any
deduction or withholding for or on account of any Tax from any payment (other
than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made
by it to the other party under this Agreement.

    

    In making
this representation, a party may rely on (i) the accuracy of any representations
made by the other party pursuant to Section 3(f) of this Agreement, (ii) the
satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this
Agreement, and the accuracy and effectiveness of any document provided by the
other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement, and
(iii) the satisfaction of the agreement of the other party contained in Section
4(d) of this Agreement, provided that it shall not be a breach of this
representation where reliance is placed on clause (ii) above and the other party
does not deliver a form or document under Section 4(a)(iii) by reason of
material prejudice to its legal or commercial position.

    

    
      	
              (b)

            	
              Payee Tax Representations.
        For the purpose of Section 3(f) of this
      Agreement:

            

    

    

    (i) Party
A makes the following representation(s):

    

    (A) It is
a national banking association organized or formed under the laws of the United
States and is a United States resident for United States federal income tax
purposes.

    

    (B) Party
A makes no other Payee Tax Representations.

    

    (ii)
Party B makes the following representation(s):

    

    
      	
               
      

            	
              (A)
      It is organized or formed under the laws of a state within the United
      States, and it is (or, if Party B is disregarded for United States federal
      income tax purposes, its beneficial owner is) a United States resident for
      United States federal income tax
purposes.

            

    

    

    (B) Party B makes no other Payee Tax
Representations.

    

    
      	
              Part
      3.    

            	
              Documents

            

    

    

    
      	
              (a)

            	
              Tax
    Forms.

            

    

    

    
      	
               
      

            	
              (i)
      Delivery of Tax
      Forms.  For the purpose of Section 4(a)(i), and without
      limiting Section 4(a)(iii), each party agrees to duly complete, execute
      and deliver to the other party the tax forms specified below with respect
      to it (A) before the first Payment Date under this Agreement, (B) promptly
      upon reasonable demand by the other party and (C) promptly upon learning
      that any such form previously provided by the party has become obsolete or
      incorrect.

            

    

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (ii)
Tax Forms to be Delivered by
Party A:

    

    None
specified.

    

    
      	
               
      

            	
              (iii)
      Tax forms to be Delivered
      by Party B:

            

    

    

    (A) If
Party B is (or, if Party B is disregarded for United States federal income tax
purposes, its beneficial owner is) treated as a corporation for United States
federal income tax purposes whose name includes “Incorporated”, “Inc.”,
“Corporation”, “P.C.”, “Insurance Company” “Indemnity Company”, “Reinsurance
Company”, or  “Assurance Company”:

    

    None
specified, unless any amount payable to Party B under this Agreement is to be
paid to an account outside the United States, in which case the tax form to be
delivered by Party B shall be a correct, complete and duly executed U.S.
Internal Revenue Service Form W-9 (or successor thereto) that eliminates U.S.
federal backup withholding tax on payments to Party B under this
Agreement.

    

    (B) In
all other cases:

    

    A
correct, complete and duly executed U.S. Internal Revenue Service Form W-9 (or
successor thereto) that eliminates U.S. federal backup withholding tax on
payments to Party B under this Agreement.

    

    
      	
              (b)

            	
              Delivery of Documents.
      When it delivers this Agreement, each party shall also deliver its Closing
      Documents to the other party in form and substance reasonably satisfactory
      to the other party.  For each Transaction, a party shall
      deliver, promptly upon request, a duly executed incumbency certificate for
      the person(s) executing the Confirmation for that Transaction on behalf of
      that party.

            

    

    

    (i) For
Party A, “Closing Documents” means (A) a copy, certified by the secretary or
assistant secretary of Party A, of the resolutions of Party A’s board of
directors authorizing the execution, delivery and performance by Party A of this
Agreement and authorizing Party A to enter into Transactions hereunder and (B) a
duly executed certificate of the secretary or assistant secretary of Party A
certifying the name, true signature and authority of each person authorized to
execute this Agreement and enter into Transactions for Party A.

    

    (ii) For
Party B, “Closing Documents” means an opinion of counsel covering Party B’s
Basic Representations under Section 3(a) as they relate to this Agreement, or in
lieu thereof, (I) a copy, certified by the secretary or assistant secretary of
Party B, of resolutions of Party B’s board of directors authorizing the
execution, delivery and performance of this Agreement and authorizing Party B to
enter into Transactions hereunder and (II) a duly executed certificate of the
secretary or assistant secretary of Party B certifying the name, true signature
and authority of each person authorized to execute this Agreement and enter into
Transactions for Party B.

    

    
      	
              Part
      4.    

            	
              Miscellaneous

            

    

    

    
      	
              (a)

            	
              Addresses for
      Notices.

            

    

    

    
      	
               
      

            	
              (i)
      For purposes of Section 12(a) of this Agreement, all notices to Party A
      shall, with respect to any particular Transaction, be sent to the address,
      telex number or facsimile number specified by Party A in the relevant
      Confirmation (or as specified below if not specified in the relevant
      Confirmation), provided that any notice under Section 5 or 6 of this
      Agreement shall be sent to Party A at its head office address specified
      below.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    Head
Office

    WACHOVIA
BANK, N.A.

    301 South
College Street, DC-8

    Charlotte,
NC 28202-0600

    

    Attention:
Derivatives Documentation Group

    

    Fax:
(704) 383-0575

    Phone:
(704) 383-8778

    

    
      	
               
      

            	
              (ii)
      For purposes of Section 12(a) of this Agreement, all notices to Party B
      shall, with respect to any particular Transaction, be sent to the address,
      telex number or facsimile number specified by Party B in the relevant
      Confirmation (or as specified below if not specified in the relevant
      Confirmation), provided that any notice under Section 5 or 6 of this
      Agreement shall be sent to Party B at its head office address specified
      below.

            

    

    

    LAKELAND
INDUSTRIES, INC.

    701
Koehler Avenue, Suite 7

    Ronkonkoma,
NY 11779

    

    Attention:
Rosanne Fabricatore

    

    Fax:
631-981-9751

    Phone:
631-981-9700 ext. 14

    

    
      	
              (b)

            	
              Process
      Agent.  For the purpose of Section 13(c) of this
      Agreement, neither party appoints a Process Agent
    hereunder.

            

    

    

    
      	
              (c)

            	
              Offices.  Section
      10(a) applies.

            

    

    

    
      	
              (d)

            	
              Multibranch
      Party.

            

    

    

    (i) Party
A is a Multibranch Party and may act through the following Offices: its
Charlotte Head Office and its London Branch.

    

    (ii)
Party B is not a Multibranch Party.

    

    
      	
              (e)

            	
              “Calculation Agent”
      means Party A.

            

    

    

    
      	
              (f)

            	
              “Credit Support
      Document” means, with respect to Party B, each document (whether
      now existing or hereafter executed) which by its terms secures, guarantees
      or otherwise supports Party B’s obligations under this Agreement from time
      to time, whether or not this Agreement, any Transaction, or any type of
      Transaction entered into hereunder is specifically referenced or described
      in any such document.

            

    

    

    “Credit Support Default” is
amended by adding at the end of Section 5(a)(iii)(1):

    

    “, any
default, event of default or other similar condition or event (however
described) exists under any Credit Support Document, any action is taken to
realize upon any collateral provided to secure such party’s obligations
hereunder or under any Transaction, or the other party fails at any time to have
a valid and perfected first priority security interest in any such
collateral;”

    

    
      	
              (g)

            	
              “Credit Support
      Provider” means, with respect to Party B, each party to a Credit
      Support Document that

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    provides
or is obligated to provide security, a guaranty or other credit support for
Party B’s obligations under this Agreement.

    

    
      	
              (h)

            	
              Governing
      Law.  To the extent not otherwise preempted by U.S.
      Federal law, this Agreement will be governed by and construed in
      accordance with the law of the State of New York (without giving effect to
      any provision of New York law that would cause another jurisdiction’s laws
      to be applied).

            

    

    

    
      	
              (i)

            	
              Waiver of Jury
      Trial.  To the extent permitted by applicable law, each
      party irrevocably waives any and all right to trial by jury in any legal
      proceeding in connection with this Agreement, any Credit Support Document
      to which it is a party, or any
Transaction.

            

    

    

    
      	
              (j)

            	
              Netting of
      Payments.  Section 2(c)(ii) will apply in respect of all
      Transactions from the date of this Agreement, provided that Section
      2(c)(ii) will not apply with respect to any Transactions or group of
      Transactions for which the parties mutually agree shall be netted
      operationally.

            

    

    

    (k)           “Affiliate” has its meaning as
defined in Section 14.

    

    
      	
              Part
      5.  

            	
              Other
      Provisions

            

    

    

    
      	
              (a)

            	
              ISDA
      Publications.

            

    

    

    (i) 2006 ISDA Definitions. This
Agreement and each Transaction are subject to the 2006 ISDA Definitions
published by the International Swaps and Derivatives Association, Inc. (the
“2006 ISDA Definitions”) and will be governed by the provisions of the 2006 ISDA
Definitions. The provisions of the 2006 ISDA Definitions are incorporated by
reference in, and shall form part of, this Agreement and each Confirmation. Any
reference to a “Swap Transaction” in the 2006 ISDA Definitions is deemed to be a
reference to a “Transaction” for purposes of this Agreement or any Confirmation,
and any reference to a “Transaction” in this Agreement or any Confirmation is
deemed to be a reference to a “Swap Transaction” for purposes of the 2006 ISDA
Definitions. The provisions of this Agreement (exclusive of the 2006 ISDA
Definitions) shall prevail in the event of any conflict between such provisions
and the 2006 ISDA Definitions.

    

    
      	
               
      

            	
              (ii)
      EMU Protocol. If a
      present or future European Union member state adopts the euro as its
      lawful currency to replace its national currency (including, without
      limitation, Sterling, Danish Krone and Swedish Krona), then Annexes 1
      through 5 (inclusive) and Section 6 of the EMU Protocol published on May
      6, 1998 by the International Swaps and Derivatives Association, Inc. (i)
      shall be deemed to apply to any Transaction involving that member state’s
      national currency (which shall be considered a Legacy Transaction under
      the EMU Protocol), (ii) shall be construed in a manner consistent with the
      purpose of the EMU Protocol notwithstanding that the start of the third
      stage of European Economic and Monetary Union has already occurred, and
      (iii) are hereby incorporated by reference in, and shall form part of,
      this Agreement. References in the EMU Protocol to “ISDA Master Agreement”
      will be deemed references to this
Agreement.

            

    

    

    
      	
              (b)

            	
              Scope of Agreement. Any
      Specified Transaction now existing or hereafter entered into between the
      parties (whether or not evidenced by a Confirmation) shall constitute a
      “Transaction” under this Agreement and shall be subject to, governed by,
      and construed in accordance with the terms of this Agreement, unless the
      confirming document(s) for that Specified Transaction provide(s)
      otherwise.  For any such Specified Transaction not evidenced by
      a Confirmation, Section 2(a)(i) of this Agreement is amended to read as
      follows: “(i) Each party will make each payment or delivery to be made by
      it under each Transaction, as specified in each Confirmation (or otherwise
      in accordance with the terms of that Transaction if not evidenced by a
      Confirmation), subject to the other provisions of this
      Agreement.”

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
              (c)

            	
              Additional
      Representations.  In addition to the representations
      under Section 3, the following representations will
  apply:

            

    

    

    (i) Relationship Between
Parties.  Each party will be deemed to represent to the other
party on the date on which it enters into a Relevant Agreement
that:

    

    
      	
               
      

            	
              (1)

            	
              Non-Reliance.  It is acting
      for its own account, and it has made its own independent decisions to
      enter into the Relevant Agreement and as to whether the Relevant Agreement
      is appropriate or proper for it based solely upon its own judgment and
      upon advice from such advisers as it has deemed necessary.  It
      is not relying on any communication (written or oral) of the other party
      or any of its affiliates (or its respective representatives) as investment
      advice or as a recommendation to enter into the Relevant Agreement, it
      being understood that information and explanations related to the terms
      and conditions of any Relevant Agreement will not be considered investment
      advice or a recommendation to enter into the Relevant
      Agreement.  No communication (written or oral) received from the
      other party or any of its affiliates (or its respective representatives)
      will be deemed to be an assurance or guarantee as to the expected results
      of the Relevant Agreement.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Assessment and
      Understanding.  It is
      capable of assessing the merits of and understanding (on its own behalf or
      through independent professional advice), and understands and accepts, the
      terms, conditions and risks of the Relevant Agreement based solely upon
      its own evaluation of the Relevant Agreement (including the present and
      future results, consequences, risks, and benefits thereof, whether
      financial, accounting, tax, legal, or otherwise) or that of its own
      advisers.  It is also capable of assuming, and assumes, the
      risks of the Relevant Agreement.  It also understands that the
      terms under which any Transaction may be terminated early are set forth in
      this Agreement (or in the relevant Confirmation), and any early
      termination of a Transaction other than pursuant to such terms is subject
      to mutual agreement of the parties confirmed in writing, the terms of
      which may require one party to pay an early termination fee to the other
      party based upon market conditions prevailing at the time of early
      termination.

            

    

    

    
      	
               
      

            	
              (3)

            	
              Status of
      Parties.  The other party is not acting as a fiduciary
      for or an adviser to it in respect of the Relevant Agreement, and any
      agency, brokerage, advisory or fiduciary services that the other party (or
      any of its affiliates) may otherwise provide to the party (or to any of
      its affiliates) excludes the Relevant
Agreement.

            

    

    

    “Relevant
Agreement” means this Agreement, each Transaction, each Confirmation, any Credit
Support Document, or any agreement (including any amendment, modification,
transfer or early termination) between the parties relating to this Agreement or
to any Transaction, Confirmation or Credit Support Document.

    

    (ii)
Eligibility.  Each
party will be deemed to represent to the other party on the date on which it
enters into a Transaction that it is an “eligible contract participant” within
the meaning of the Commodity Exchange Act.

    

    (iii)
ERISA.  Each
party represents to the other party at all times hereunder that it is not (i) an
employee benefit plan as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), or a plan as defined in
Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended (the
“Code”), subject to Title I of ERISA or Section 4975 of the Code, or a plan as
so defined but which is not subject to Title I of ERISA or Section 4975 of the
Code but is subject to another law materially similar to Title I of ERISA or
Section 4975 of the Code (each of which, an “ERISA Plan”), (ii) a person or
entity acting on behalf of an ERISA Plan, or (iii) a person or entity the assets
of which constitute assets of an ERISA Plan.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      	
              (d)

            	
              Set-off.  Any
      amount (“Early Termination Amount”) payable to one party (“Payee”) by the
      other party (“Payer”) under Section 6(e), in circumstances where there is
      a Defaulting Party or one Affected Party in the case where a Termination
      Event under Section 5(b)(iv) has occurred, will, at the option of the
      party (“X”) other than the Defaulting Party or the Affected Party (and
      without prior notice to the Defaulting Party or the Affected Party), be
      reduced by means of set off against any amount(s) (“Other Agreement
      Amount”) payable (whether at such time or in the future or upon the
      occurrence of a contingency) by the Payee to the Payer or to any Affiliate
      of the Payer (irrespective of the currency, place of payment or booking
      office of the obligation) under any other agreement(s) between the Payee
      and the Payer (or between the Payee and any Affiliate of the Payer) or
      instrument(s) or undertaking(s) issued or executed by the Payee to, or in
      the favor of, the Payer or any Affiliate of the Payer (and the Other
      Agreement Amount will be discharged promptly and in all respects to the
      extent it is so set-off).  X will give notice to the other party
      of any set-off effected under this
paragraph.

            

    

    

    For this
purpose, either the Early Termination Amount or the Other Agreement Amount (or
the relevant portion of such amounts) may be converted by X into the currency in
which the other is denominated at the rate of exchange at which such party would
be able, acting in a reasonable manner and in good faith, to purchase the
relevant amount of such currency.  The term “rate of exchange”
includes, without limitation, any premiums and costs of exchange payable in
connection with the purchase of or conversion into the relevant
currency.

    

    Nothing
in this paragraph shall be effective to create a charge or other security
interest.  This paragraph shall be without prejudice and in addition
to any right of set-off, combination of accounts, lien or other right to which
any party is at any time otherwise entitled (whether by operation of law,
contract or otherwise).

    

    
      	
              (e)

            	
              Escrow.  If
      payments denominated in different currencies are due hereunder by both
      parties on the same day and a party has reasonable cause to believe that
      the other party will not meet its payment obligation, then as reasonable
      assurance of performance the party may notify the other party that
      payments on that date are to be made in escrow. In this case, deposit of
      the payment due earlier on that date shall be made by 2.00 p.m. (local
      time at the place for the earlier payment) on that date with any escrow
      agent selected by the party giving the notice from among major commercial
      banks independent of either party (and its affiliates), accompanied by
      irrevocable payment instructions (i) to release the deposited payment to
      the intended recipient upon receipt by the escrow agent of the required
      deposit of the corresponding payment from the other party on the same date
      accompanied by irrevocable payment instructions to the same effect or (ii)
      if the required deposit of the corresponding payment is not made on the
      same date, to return the payment deposited to the party that paid in
      escrow.  The party that elects to have payments made in escrow
      shall pay the costs of the escrow arrangements and shall make arrangements
      to provide that the intended recipient of the amount due to be deposited
      first shall be entitled to interest on the deposited payment for each day
      in the period of its deposit at the rate offered by the escrow agent for
      that day for overnight deposits in the relevant currency in the office
      where it holds that deposited payment (at 11.00 a.m. local time on that
      day) if that payment is not released by 5.00 p.m. local time on the date
      it is deposited for any reason other than the intended recipient’s failure
      to make the escrow deposit it is required to make hereunder in a timely
      fashion.

            

    

    

    
      	
              (f)

            	
              Change of
      Account.  Any account designated by a party pursuant to
      Section 2(b) shall be in the same legal and tax jurisdiction as the
      original account.

            

    

    

    
      	
              (g)

            	
              Recording of
      Conversations.  Each party (i) consents to the recording
      of telephone conversations between the trading, marketing and other
      relevant personnel of the parties or any of their Affiliates in connection
      with this Agreement or any Transaction or potential Transaction, (ii)
      agrees to obtain any necessary consent of, and give any necessary notice
      of such recording to, its relevant personnel and those of its Affiliates
      and (iii) agrees, to the extent permitted by applicable law, that such
      recordings may be submitted in evidence in any
  Proceedings.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	
              (h)

            	
              Confirmation
      Procedures.  Upon receipt thereof, Party B shall examine
      the terms of each Confirmation sent by Party A, and unless Party B objects
      to the terms within three New York business days after receipt of that
      Confirmation, those terms shall be deemed accepted and correct absent
      manifest error, in which case that Confirmation will be sufficient to form
      a binding supplement to this Agreement notwithstanding Section 9(e)(ii) of
      this Agreement.

            

    

    

    
      	
              (i)

            	
              Covenants of Financial
      Agreements.

            

    

    

    (i) Party
B shall provide Party A at all times hereunder with the same covenant protection
as Party B provides Party A (or any of its Affiliates) under Financial
Agreements.  Therefore, in addition to the Cross Default provisions of
this Agreement, and notwithstanding the satisfaction of any obligation or
promise to pay money to Party A (or any of its Affiliates) under any Financial
Agreement, or the termination or cancellation of any Financial Agreement, Party
B hereby agrees to perform, comply with and observe for the benefit of Party A
hereunder all affirmative and negative covenants contained in each Financial
Agreement applicable to Party B (excluding any obligation or promise to pay
money under any Financial Agreement) at any time Party B has any obligation
(whether absolute or contingent) under this Agreement.

    

    (ii) For
purposes hereof: (A) the affirmative and negative covenants of each Financial
Agreement applicable to Party B (together with related definitions and ancillary
provisions, but in any event excluding any obligation or promise to pay money
under any Financial Agreement) are incorporated by reference herein (mutatis
mutandis); (B) if lenders or creditors other than Party A are parties to any
Financial Agreement, then references therein to the lenders or creditors shall
be deemed references to Party A; and (C) for any such covenant applying only
when any loan, other extension of credit, obligation or commitment under any
Financial Agreement is outstanding, that covenant shall be deemed to apply
hereunder at any time Party B has any obligation (whether absolute or
contingent) under this Agreement.

    

    (iii)
Notwithstanding the foregoing, if the incorporation of any provision by
reference from any Financial Agreement would result in the violation by Party B
of the terms of that Financial Agreement, or be in violation of any law, rule or
regulation (as interpreted by any court of competent jurisdiction), then this
Agreement shall not incorporate that provision.

    

    “Financial Agreement” means
each existing or future agreement or instrument relating to any loan or
extension of credit from Party A (or any of its Affiliates) to Party B (whether
or not anyone else is a party thereto), as the same exists when executed and
without regard to (i) any termination or cancellation thereof or Party A (or any
of its Affiliates) ceasing to be a party thereto (whether as a result of
repayment thereof or otherwise), or (ii) unless consented to in writing by Party
A (or any of its Affiliates), any amendment, modification, addition, waiver or
consent thereto or thereof.

    

    
      	
              (j)

            	
              Transfer.  Notwithstanding
      anything contained in Section 7 of this Agreement, if the rights of Party
      A (or any of its Affiliates) in any loan or extension of credit under any
      Financial Agreement are sold, assigned or otherwise transferred to any
      purchaser, assignee or transferee to which Party A (or its relevant
      Affiliate) may lawfully make such sale, assignment or transfer, then Party
      A may transfer without recourse its rights and obligations in or under
      this Agreement (and any Credit Support Document) to any such purchaser,
      assignee or transferee, provided that Party B is provided with written
      notice of such transfer and a written acknowledgement of the purchaser,
      assignee or transferee stating that it has acquired such rights and
      obligations of Party A and is bound by the terms of this Agreement (and
      any Credit Support Document) as Party A’s successor hereunder (and
      thereunder).

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    
      	
              (k)

            	
              Independent
      Obligations.  (i) Although Party B may be entering into
      one or more Transactions under this Agreement to hedge against the
      interest expense of, or other risk associated with, an existing or future
      loan or other financing, this Agreement and each Transaction shall be an
      independent obligation of Party B separate and apart from any such loan or
      other financing, and therefore: (A) each party’s obligations under this
      Agreement or any Transaction shall not be contingent on whether any loan
      or other financing closes, is outstanding or is repaid, in whole or in
      part, at any time; (B) subject to paragraph (ii) below, any repayment,
      acceleration, satisfaction, discharge or release of, and any amendment,
      modification or waiver with respect to, any loan or other financing,
      whether in whole or in part, at any time, shall not in any way affect this
      Agreement, any Transaction or either party’s obligations under this
      Agreement or any Transaction; (C) payments that become due under this
      Agreement or any Transaction shall be due whether or not (1) the Notional
      Amount of any Transaction at any time is different from the principal
      amount of any loan or other financing, (2) the Termination Date of any
      Transaction occurs before or after the maturity date of any loan or other
      financing, or (3) any other terms of any loan or other financing are
      different from the terms of this Agreement or any Transaction; (D) nothing
      in this Agreement or in any Confirmation is intended to be, nor shall
      anything herein or therein be construed as, a prepayment penalty, charge
      or premium for purposes of any loan or other financing, nor shall any
      terms of any loan or other financing be deemed a waiver of or otherwise
      impair any amount due or that may become due under this Agreement or under
      any Transaction; (E) if Party B at any time receives from Party A (or any
      of its affiliates) any payoff statement or other written statement
      regarding any loan or other financing, nothing in such statement shall be
      deemed to apply to this Agreement or any Transaction except as otherwise
      expressly provided in that statement and then only to the extent so
      provided; (F) the terms under which any Transaction may be terminated
      early are set forth in this Agreement (including any Confirmation of such
      Transaction), and any early termination of a Transaction other than
      pursuant to the provisions of this Agreement (including any such
      Confirmation) is subject to mutual agreement of the parties confirmed in
      writing, the terms of which may require one party to pay an early
      termination fee to the other party based upon market conditions prevailing
      at the time of early termination; and (G) if at any time any existing or
      future collateral or other credit support secures or otherwise supports
      both this Agreement (or any Transaction hereunder) and any loan or other
      financing (whether this Agreement or any Transaction hereunder is
      specifically identified in the collateral or credit support documents, or
      instead is referred to therein generically), then Party A (or its agent)
      shall be entitled to continue to hold such collateral or other credit
      support, and such collateral or other credit  support shall
      continue to secure or otherwise support Party B’s obligations under this
      Agreement (or any Transaction hereunder), until such time as all such
      obligations of Party B are completely satisfied notwithstanding any
      repayment, acceleration, satisfaction, discharge or release of any such
      loan or other financing.

            

    

    

    (ii)
Nothing in paragraph (i) above shall be construed as impairing or limiting: any
set-off rights; any cross default, credit support default or other provisions
contained in this Agreement or any Confirmation to the extent such provisions
refer to any repayment or acceleration of any loan or other financing; any
rights or obligations under any Credit Support Documents; or any obligations of
Party B under any covenant incorporated in this Schedule by reference from any
loan or other financing (provided that any amendment, modification or waiver
executed and delivered by Party A in writing with respect to any such covenant
shall be deemed to apply hereunder to that covenant as so incorporated unless
otherwise expressly provided in such writing).

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    
      	
              Part
      6. 

            	
              Additional
      Terms for FX Transactions and Currency
  Options

            

    

    

    
      	
              (a)

            	
              ISDA FX and Currency Option
      Definitions.  The 1998 FX and Currency Option Definitions
      published by the International Swaps and Derivatives Association, Inc.,
      the Emerging Markets Traders Association and The Foreign Exchange
      Committee (the “1998 FX and Currency Option Definitions”) are hereby
      incorporated by reference in, and shall form part of, this Agreement and
      each Confirmation relating to any “Currency Option Transaction” or “FX
      Transaction” as defined in the 1998 FX and Currency Option Definitions,
      except as otherwise specifically provided herein or in the relevant
      Confirmation.

            

    

    

    
      	
              (b)

            	
              FX
      Transactions.

            

    

    

    Netting of FX
Transactions.  Section 2(c) shall not apply to FX
Transactions.  Instead, the following provision will apply to FX
Transactions:

    

    If
amounts in the same currency would be due by both parties in respect of the same
Settlement Date (or other payment or delivery date) under two or more FX
Transactions between the same pair of Offices of the parties (assuming
satisfaction of each condition precedent), then the obligations of the parties
for those amounts will be discharged automatically, and if one party’s
obligation in that currency would have been greater, replaced by an obligation
of that party to pay or deliver the amount of that difference to the other party
on that Settlement Date or date.

    

    
      	
              (c)

            	
              Currency Option
      Transactions.

            

    

    

    (i)  Currency Option Transaction
Premiums.  If any Premium of a Currency Option Transaction is
not received on the Premium Payment Date, then the Seller may elect to either
(A) accept late payment of that Premium, or (B) give written notice of that
nonpayment and, if that payment is not received within three Local Business Days
of that notice, either (1) treat the related Currency Option Transaction as
void, or (2) treat that non-payment as an Event of Default under Section 5(a)(i)
of this Agreement.  If the Seller elects to act under clause (A) or
(B)(1) of the preceding sentence, then the Buyer shall pay on demand all
out-of-pocket costs and actual damages incurred by the Seller in connection with
that unpaid or late Premium or void Currency Option Transaction, including,
without limitation, interest on that Premium in the same currency as that
Premium at the Default Rate and any other costs or expenses incurred by the
Seller to compensate it for its loss of bargain, cost of funding or loss
incurred as a result of terminating, liquidating, obtaining or re-establishing a
delta hedge or other related trading position with respect to that Currency
Option Transaction.

    

    (ii)
Netting of Currency Option
Transactions.  Section 2(c) of this Agreement shall not apply
to Currency Option Transactions.  Instead, the following provisions
will apply to Currency Option Transactions:

    

    (A) If
Premiums in the same currency would be due by both parties in respect of the
same Premium Payment Date under two or more Currency Option Transactions between
the same pair of Offices of the parties (assuming satisfaction of each condition
precedent), then the obligations of the parties for those Premiums will be
discharged automatically, and if one party’s obligation in that currency would
have been greater, replaced by an obligation of that party to pay or deliver the
amount of that difference to the other party.

    

    (B) If
amounts in the same currency (other than Premiums) would be due by both parties
in respect of the same Settlement Date (or other payment or delivery date) under
two or more Currency Option Transactions between the same pair of Offices of the
parties (assuming satisfaction of each condition precedent), then the
obligations of the parties for those amounts will be discharged automatically,
and if one party’s obligation in that currency would have been greater, replaced
by an obligation of that party to pay or deliver the amount of that difference
to the other party on that Settlement Date or date.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    (C) For
matching Currency Option Transactions, any unexercised Call or Put written by a
party will automatically be terminated and discharged, in whole or in part, as
applicable, against any unexercised Call or Put, respectively, written by the
other party upon the payment in full of both Currency Option Transaction
Premiums. Currency Option Transactions are “matching” only if both (i) are
granted for the same Put Currency, Call Currency, Expiration Date, Expiration
Time, and Strike Price, (ii) have the same exercise style (e.g., American,
European or Asian) including the same exercise terms, and (iii) are entered into
by the same pair of Offices of the parties.  For any partial
termination and discharge (where the Currency Option Transactions are for
different amounts of the Currency Pair), the remaining portion of the Currency
Option Transaction shall continue to be a Currency Option Transaction under this
Agreement.

    

    
      	
              (d)

            	
              Notice of
      Exercise.  Notwithstanding Section 3.5 (g) of the 1998 FX
      and Currency Option Definitions, a Notice of Exercise may be delivered by
      facsimile for purposes of exercising a Currency Option only if, after
      reasonable efforts have been made by the Buyer to deliver such Notice of
      Exercise orally by telephone, Buyer is unable to reach an appropriate
      person at the Seller by telephone on the relevant day for purposes of
      exercising such Currency Option on that day.  Whenever a Notice
      of Exercise has been given orally by telephone, a confirmation of such
      Notice of Exercise may be delivered in writing by facsimile or by any
      other means specified therefore in the relevant
    Confirmation.

            

    

    

    IN WITNESS WHEREOF, the
parties have executed this Schedule by their duly authorized signatories as of
the date hereof.

    

    
      	 
      	
              WACHOVIA
      BANK, NATIONAL ASSOCIATION

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:
      /s/ John
      Miechkowski

            
	 
      	
              Name:
      John Miechkowski

            
	 
      	
              Title:
      Director

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              LAKELAND
      INDUSTRIES, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:
      /s/ Gary
      Pokrassa

            
	 
      	
              Name:
      Gary Pokrassa

            
	 
      	
              Title:
      Chief Financial Officer

            

    

     

     

    11ex10-2.htm

    Exhibit
10.2

      (Multicurrency
— Cross Border)

      ISDA®

      International
Swap Dealers Association, Inc.

      

      

      MASTER
AGREEMENT

      

      dated as
of  September 19, 2008

      

      
        	
                WACHOVIA
      BANK, NATIONAL ASSOCIATION

              	
                and

              	
                LAKELAND
      INDUSTRIES, INC.

                 

              

      

      

      have
entered and/or anticipate entering into one or more transactions (each a
“Transaction”) that are or will be governed by this Master Agreement, which
includes the schedule (the “Schedule”), and the documents and other confirming
evidence (each a “Confirmation”) exchanged between the parties confirming those
Transactions.

       

      Accordingly,
the parties agree as follows: —

       

      
        	
                1.

              	
                Interpretation

              

      

       

      (a)           Definitions.
The terms defined in Section 14 and in the Schedule will have the meanings
therein specified for the purpose of this Master Agreement.

       

      (b)           Inconsistency.
In the event of any inconsistency between the provisions of the Schedule and the
other provisions of this Master Agreement, the Schedule will prevail. In the
event of any inconsistency between the provisions of any Confirmation and this
Master Agreement (including the Schedule), such Confirmation will prevail for
the purpose of the relevant Transaction.

       

      (c)           Single
Agreement. All Transactions are entered into in reliance on the fact that
this Master Agreement and all Confirmations form a single agreement between the
parties (collectively referred to as this “Agreement”), and the parties would
not otherwise enter into any Transactions.

       

      
        	
                2.

              	
                Obligations

              

      

       

      
        	
                (a)

              	
                General
      Conditions.

              

      

       

      (i)           Each
party will make each payment or delivery specified in each Confirmation to be
made by it, subject to the other provisions of this Agreement.

       

      (ii)           Payments
under this Agreement will be made on the due date for value on that date in the
place of the account specified in the relevant Confirmation or otherwise
pursuant to this Agreement, in freely transferable funds and in the manner
customary for payments in the required currency. Where settlement is by delivery
(that is, other than by payment), such delivery will be made for receipt on the
due date in the manner customary for the relevant obligation unless otherwise
specified in the relevant Confirmation or elsewhere in this
Agreement.

       

      (iii)           Each
obligation of each party under Section 2(a)(i) is subject to (1) the condition
precedent that no Event of Default or Potential Event of Default with respect to
the other party has occurred and is continuing, (2) the condition precedent that
no Early Termination Date in respect of the relevant Transaction has occurred or
been effectively designated and (3) each other applicable condition precedent
specified in this Agreement.

      

      

      Copyright
© 1992 by International Swap Dealers Association, Inc.

       

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b)           Change of
Account. Either party may change its account for receiving a payment or
delivery by giving notice to the other party at least five Local Business Days
prior to the scheduled date for the payment or delivery to which such change
applies unless such other party gives timely notice of a reasonable objection to
such change.

       

      (c)           Netting.
If on any date amounts would otherwise be payable:—

       

      (i)           in
the same currency; and

       

      (ii)           in
respect of the same Transaction,

       

      by each
party to the other, then, on such date, each party’s obligation to make payment
of any such amount will be automatically satisfied and discharged and, if the
aggregate amount that would otherwise have been payable by one party exceeds the
aggregate amount that would otherwise have been payable by the other party,
replaced by an obligation upon the party by whom the larger aggregate amount
would have been payable to pay to the other party the excess of the larger
aggregate amount over the smaller aggregate amount.

       

      The
parties may elect in respect of two or more Transactions that a net amount will
be determined in respect of all amounts payable on the same date in the same
currency in respect of such Transactions, regardless of whether such amounts are
payable in respect of the same Transaction. The election may be made in the
Schedule or a Confirmation by specifying that subparagraph (ii) above will not
apply to the Transactions identified as being subject to the election, together
with the starting date (in which case subparagraph (ii) above will not, or will
cease to, apply to such Transactions from such date). This election may be made
separately for different groups of Transactions and will apply separately to
each pairing of Offices through which the parties make and receive payments or
deliveries.

       

      (d)           Deduction or
Withholding for Tax.

       

      (i)           Gross-Up.
All payments under this Agreement will be made without any deduction or
withholding for or on account of any Tax unless such deduction or withholding is
required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, then in effect. If a party is so required to
deduct or withhold, then that party (“X”) will:—

       

      (1)           promptly
notify the other party (“Y”) of such requirement;

       

      (2)           pay
to the relevant authorities the full amount required to be deducted or withheld
(including the full amount required to be deducted or withheld from any
additional amount paid by X to Y under this Section 2(d)) promptly upon the
earlier of determining that such deduction or withholding is required or
receiving notice that such amount has been assessed against Y;

       

      (3)           promptly
forward to Y an official receipt (or a certified copy), or other documentation
reasonably acceptable to Y, evidencing such payment to such authorities;
and

       

      (4)           if
such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which
Y is otherwise entitled under this Agreement, such additional amount as is
necessary to ensure that the net amount actually received by Y (free and clear
of Indemnifiable Taxes, whether assessed against X or Y) will equal the full
amount Y would have received had no such deduction or withholding been required.
However, X will not be required to pay any additional amount to Y to the extent
that it would not be required to be paid but for:—

       

      (A)                 the
failure by Y to comply with or perform any agreement contained in Section
4(a)(i), 4(a)(iii) or 4(d); or

       

      (B)                 the
failure of a representation made by Y pursuant to Section 3(f) to be accurate
and true unless such failure would not have occurred but for (I) any action
taken by a taxing authority, or brought in a court of competent jurisdiction, on
or after the date on which a Transaction is entered into (regardless of whether
such action is taken or brought with respect to a party to this Agreement) or
(II) a Change in Tax Law.

      
        
          
              ISDA® 1992 

          

           

        

        
          2

          
            

          

        

        
           

        

      

       

      (ii)           Liability.
If: —

       

      (1)           X
is required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, to make any deduction or withholding in respect
of which X would not be required to pay an additional amount to Y under Section
2(d)(i)(4);

       

      (2)           X
does not so deduct or withhold; and

       

      (3)           a
liability resulting from such Tax is assessed directly against X,

       

      then,
except to the extent Y has satisfied or then satisfies the liability resulting
from such Tax, Y will promptly pay to X the amount of such liability (including
any related liability for interest, but including any related liability for
penalties only if Y has failed to comply with or perform any agreement contained
in Section 4(a)(i), 4(a)(iii) or 4(d)).

       

      (e)           Default Interest;
Other Amounts. Prior to the occurrence or effective designation of an
Early Termination Date in respect of the relevant Transaction, a party that
defaults in the performance of any payment obligation will, to the extent
permitted by law and subject to Section 6(c), be required to pay interest
(before as well as after judgment) on the overdue amount to the other party on
demand in the same currency as such overdue amount, for the period from (and
including) the original due date for payment to (but excluding) the date of
actual payment, at the Default Rate. Such interest will be calculated on the
basis of daily compounding and the actual number of days elapsed. If, prior to
the occurrence or effective designation of an Early Termination Date in respect
of the relevant Transaction, a party defaults in the performance of any
obligation required to be settled by delivery, it will compensate the other
party on demand if and to the extent provided for in the relevant Confirmation
or elsewhere in this Agreement.

       

      
        	
                3.

              	
                Representations

              

      

       

      Each
party represents to the other party (which representations will be deemed to be
repeated by each party on each date on which a Transaction is entered into and,
in the case of the representations in Section 3(f), at all times until the
termination of this Agreement) that:—

       

      
        	
                (a)

              	
                Basic
      Representations.

              

      

       

      (i)           Status. It
is duly organised and validly existing under the laws of the jurisdiction of its
organisation or incorporation and, if relevant under such laws, in good
standing;

       

      (ii)           Powers. It
has the power to execute this Agreement and any other documentation relating to
this Agreement to which it is a party, to deliver this Agreement and any other
documentation relating to this Agreement that it is required by this Agreement
to deliver and to perform its obligations under this Agreement and any
obligations it has under any Credit Support Document to which it is a party and
has taken all necessary action to authorise such execution, delivery and
performance;

       

      (iii)           No Violation or
Conflict. Such execution, delivery and performance do not violate or
conflict with any law applicable to it, any provision of its constitutional
documents, any order or judgment of any court or other agency of government
applicable to it or any of its assets or any contractual restriction binding on
or affecting it or any of its assets;

       

      (iv)           Consents.
All governmental and other consents that are required to have been obtained by
it with respect to this Agreement or any Credit Support Document to which it is
a party have been obtained and are in full force and effect and all conditions
of any such consents have been complied with; and

       

      (v)           Obligations
Binding. Its obligations under this Agreement and any Credit Support
Document to which it is a party constitute its legal, valid and binding
obligations, enforceable in accordance with their respective terms (subject to
applicable bankruptcy, reorganisation, insolvency, moratorium or similar laws
affecting creditors’ rights generally and subject, as to enforceability, to
equitable principles of general application (regardless of whether enforcement
is sought in a proceeding in equity or at law)).

      
        
          
              ISDA® 1992 

          

           

        

        
          3

          
            

          

        

        
           

        

      

       

      (b)           Absence of
Certain Events. No Event of Default or Potential Event of Default or, to
its knowledge, Termination Event with respect to it has occurred and is
continuing and no such event or circumstance would occur as a result of its
entering into or performing its obligations under this Agreement or any Credit
Support Document to which it is a party.

       

      (c)           Absence of
Litigation. There is not pending or, to its knowledge, threatened against
it or any of its Affiliates any action, suit or proceeding at law or in equity
or before any court, tribunal, governmental body, agency or official or any
arbitrator that is likely to affect the legality, validity or enforceability
against it of this Agreement or any Credit Support Document to which it is a
party or its ability to perform its obligations under this Agreement or such
Credit Support Document.

       

      (d)           Accuracy of
Specified Information. All applicable information that is furnished in
writing by or on behalf of it to the other party and is identified for the
purpose of this Section 3(d) in the Schedule is, as of the date of the
information, true, accurate and complete in every material respect.

       

      (e)           Payer Tax
Representation. Each representation specified in the Schedule as being
made by it for the purpose of this Section 3(e) is accurate and
true.

       

      (f)           Payee Tax
Representations. Each representation specified in the Schedule as being
made by it for the purpose of this Section 3(f) is accurate and
true.

       

      
        	
                4.

              	
                Agreements

              

      

       

      Each
party agrees with the other that, so long as either party has or may have any
obligation under this Agreement or under any Credit Support Document to which it
is a party:—

       

      (a)           Furnish Specified
Information. It will deliver to the other party or, in certain cases
under subparagraph (iii) below, to such government or taxing authority as the
other party reasonably directs:—

       

      (i)           any
forms, documents or certificates relating to taxation specified in the Schedule
or any Confirmation;

       

      (ii)           any
other documents specified in the Schedule or any Confirmation; and

       

      (iii)           upon
reasonable demand by such other party, any form or document that may be required
or reasonably requested in writing in order to allow such other party or its
Credit Support Provider to make a payment under this Agreement or any applicable
Credit Support Document without any deduction or withholding for or on account
of any Tax or with such deduction or withholding at a reduced rate (so long as
the completion, execution or submission of such form or document would not
materially prejudice the legal or commercial position of the party in receipt of
such demand), with any such form or document to be accurate and completed in a
manner reasonably satisfactory to such other party and to be executed and to be
delivered with any reasonably required certification,

       

      in each
case by the date specified in the Schedule or such Confirmation or, if none is
specified, as soon as reasonably practicable.

       

      (b)           Maintain
Authorisations. It will use all reasonable efforts to maintain in full
force and effect all consents of any governmental or other authority that are
required to be obtained by it with respect to this Agreement or any Credit
Support Document to which it is a party and will use all reasonable efforts to
obtain any that may become necessary in the future.

       

      (c)           Comply with
Laws. It will comply in all material respects with all applicable laws
and orders to which it may be subject if failure so to comply would materially
impair its ability to perform its obligations under this Agreement or any Credit
Support Document to which it is a party.

       

      (d)           Tax
Agreement. It will give notice of any failure of a representation made by
it under Section 3(f) to be accurate and true promptly upon learning of such
failure.

       

      (e)           Payment of Stamp
Tax. Subject to Section 11, it will pay any Stamp Tax levied or imposed
upon it or in respect of its execution or performance of this Agreement by a
jurisdiction in which it is incorporated, organised, managed and controlled, or
considered to have its seat, or in which a branch or office
through

      
        
          
              ISDA® 1992 

          

           

        

        
          4

          
            

          

        

        
           

        

      

       

      which it
is acting for the purpose of this Agreement is located (“Stamp Tax
Jurisdiction”) and will indemnify the other party against any Stamp Tax levied
or imposed upon the other party or in respect of the other party’s execution or
performance of this Agreement by any such Stamp Tax Jurisdiction which is not
also a Stamp Tax Jurisdiction with respect to the other party.

       

      
        	
                5.

              	
                Events
      of Default and Termination Events

              

      

       

      (a)           Events of
Default. The occurrence at any time with respect to a party or, if
applicable, any Credit Support Provider of such party or any Specified Entity of
such party of any of the following events constitutes an event of default (an
“Event of Default”) with respect to such party:—

       

      (i)           Failure to Pay or
Deliver. Failure by the party to make, when due, any payment under this
Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it if
such failure is not remedied on or before the third Local Business Day after
notice of such failure is given to the party;

       

      (ii)           Breach of
Agreement. Failure by the party to comply with or perform any agreement
or obligation (other than an obligation to make any payment under this Agreement
or delivery under Section 2(a)(i) or 2(e) or to give notice of a Termination
Event or any agreement or obligation under Section 4(a)(i), 4(a)(iii) or 4(d))
to be complied with or performed by the party in accordance with this Agreement
if such failure is not remedied on or before the thirtieth day after notice of
such failure is given to the party;

       

      (iii)           Credit Support
Default.

       

      (1)           Failure
by the party or any Credit Support Provider of such party to comply with or
perform any agreement or obligation to be complied with or performed by it in
accordance with any Credit Support Document if such failure is continuing after
any applicable grace period has elapsed;

       

      (2)           the
expiration or termination of such Credit Support Document or the failing or
ceasing of such Credit Support Document to be in full force and effect for the
purpose of this Agreement (in either case other than in accordance with its
terms) prior to the satisfaction of all obligations of such party under each
Transaction to which such Credit Support Document relates without the written
consent of the other party; or

       

      (3)           the
party or such Credit Support Provider disaffirms, disclaims, repudiates or
rejects, in whole or in part, or challenges the validity of, such Credit Support
Document;

       

      (iv)           Misrepresentation.
A representation (other than a representation under Section 3(e) or (f)) made or
repeated or deemed to have been made or repeated by the party or any Credit
Support Provider of such party in this Agreement or any Credit Support Document
proves to have been incorrect or misleading in any material respect when made or
repeated or deemed to have been made or repeated;

       

      (v)           Default under
Specified Transaction. The party, any Credit Support Provider of such
party or any applicable Specified Entity of such party (1) defaults under a
Specified Transaction and, after giving effect to any applicable notice
requirement or grace period, there occurs a liquidation of, an acceleration of
obligations under, or an early termination of, that Specified Transaction, (2)
defaults, after giving effect to any applicable notice requirement or grace
period, in making any payment or delivery due on the last payment, delivery or
exchange date of, or any payment on early termination of, a Specified
Transaction (or such default continues for at least three Local Business Days if
there is no applicable notice requirement or grace period) or (3) disaffirms,
disclaims, repudiates or rejects, in whole or in part, a Specified Transaction
(or such action is taken by any person or entity appointed or empowered to
operate it or act on its behalf);

       

      (vi)           Cross
Default. If “Cross Default” is specified in the Schedule as applying to
the party, the occurrence or existence of (1) a default, event of default or
other similar condition or event (however described) in respect of such party,
any Credit Support Provider of such party or any applicable Specified Entity of
such party under one or more agreements or instruments relating
to

      
        
          
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      Specified
Indebtedness of any of them (individually or collectively) in an aggregate
amount of not less than the applicable Threshold Amount (as specified in the
Schedule) which has resulted in such Specified Indebtedness becoming, or
becoming capable at such time of being declared, due and payable under such
agreements or instruments, before it would otherwise have been due and payable
or (2) a default by such party, such Credit Support Provider or such Specified
Entity (individually or collectively) in making one or more payments on the due
date thereof in an aggregate amount of not less than the applicable Threshold
Amount under such agreements or instruments (after giving effect to any
applicable notice requirement or grace period);

       

      (vii)           Bankruptcy.
The party, any Credit Support Provider of such party or any applicable Specified
Entity of such party: —

       

      (1)           is
dissolved (other than pursuant to a consolidation, amalgamation or merger); (2)
becomes insolvent or is unable to pay its debts or fails or admits in writing
its inability generally to pay its debts as they become due; (3) makes a general
assignment, arrangement or composition with or for the benefit of its creditors;
(4) institutes or has instituted against it a proceeding seeking a judgment of
insolvency or bankruptcy or any other relief under any bankruptcy or insolvency
law or other similar law affecting creditors’ rights, or a petition is presented
for its winding- up or liquidation, and, in the case of any such proceeding or
petition instituted or presented against it, such proceeding or petition (A)
results in a judgment of insolvency or bankruptcy or the entry of an order for
relief or the making of an order for its winding-up or liquidation or (B) is not
dismissed, discharged, stayed or restrained in each case within 30 days of the
institution or presentation thereof; (5) has a resolution passed for its
winding-up, official management or liquidation (other than pursuant to a
consolidation, amalgamation or merger); (6) seeks or becomes subject to the
appointment of an administrator, provisional liquidator, conservator, receiver,
trustee, custodian or other similar official for it or for all or substantially
all its assets; (7) has a secured party take possession of all or substantially
all its assets or has a distress, execution, attachment, sequestration or other
legal process levied, enforced or sued on or against all or substantially all
its assets and such secured party maintains possession, or any such process is
not dismissed, discharged, stayed or restrained, in each case within 30 days
thereafter; (8) causes or is subject to any event with respect to it which,
under the applicable laws of any jurisdiction, has an analogous effect to any of
the events specified in clauses (1) to (7) (inclusive); or (9) takes any action
in furtherance of, or indicating its consent to, approval of, or acquiescence
in, any of the foregoing acts; or

       

      (viii)           Merger Without
Assumption. The party or any Credit Support Provider of such party
consolidates or amalgamates with, or merges with or into, or transfers all or
substantially all its assets to, another entity and, at the time of such
consolidation, amalgamation, merger or transfer: —

       

      (1)           the
resulting, surviving or transferee entity fails to assume all the obligations of
such party or such Credit Support Provider under this Agreement or any Credit
Support Document to which it or its predecessor was a party by operation of law
or pursuant to an agreement reasonably satisfactory to the other party to this
Agreement; or

       

      (2)           the
benefits of any Credit Support Document fail to extend (without the consent of
the other party) to the performance by such resulting, surviving or transferee
entity of its obligations under this Agreement.

       

      (b)           Termination
Events. The occurrence at any time with respect to a party or, if
applicable, any Credit Support Provider of such party or any Specified Entity of
such party of any event specified below constitutes an Illegality if the event
is specified in (i) below, a Tax Event if the event is specified in (ii) below
or a Tax Event Upon Merger if the event is specified in (iii) below, and, if
specified to be applicable, a Credit Event Upon Merger if the event is specified
pursuant to (iv) below or an Additional Termination Event if the event is
specified pursuant to (v) below:—

      
        
          
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                (i)

              	
                Illegality.
      Due to the adoption of, or any change in, any applicable law after the
      date on which a Transaction is entered into, or due to the promulgation
      of, or any change in, the interpretation by any court, tribunal or
      regulatory authority with competent jurisdiction of any applicable law
      after such date, it becomes unlawful (other than as a result of a breach
      by the party of Section 4(b)) for such party (which will be the Affected
      Party): —

              

      

       

      (1)           to
perform any absolute or contingent obligation to make a payment or delivery or
to receive a payment or delivery in respect of such Transaction or to comply
with any other material provision of this Agreement relating to such
Transaction; or

       

      (2)           to
perform, or for any Credit Support Provider of such party to perform, any
contingent or other obligation which the party (or such Credit Support Provider)
has under any Credit Support Document relating to such Transaction;

       

      (ii)           Tax Event.
Due to (x) any action taken by a taxing authority, or brought in a court of
competent jurisdiction, on or after the date on which a Transaction is entered
into (regardless of whether such action is taken or brought with respect to a
party to this Agreement) or (y) a Change in Tax Law, the party (which will be
the Affected Party) will, or there is a substantial likelihood that it will, on
the next succeeding Scheduled Payment Date (1) be required to pay to the other
party an additional amount in respect of an Indemnifiable Tax under Section
2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e))
or (2) receive a payment from which an amount is required to be deducted or
withheld for or on account of a Tax (except in respect of interest under Section
2(e), 6(d)(ii) or 6(e)) and no additional amount is required to be paid in
respect of such Tax under Section 2(d)(i)(4) (other than by reason of Section
2(d)(i)(4)(A) or (B));

       

      (iii)           Tax Event Upon
Merger. The party (the “Burdened Party”) on the next succeeding Scheduled
Payment Date will either (1) be required to pay an additional amount in respect
of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest
under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an
amount has been deducted or withheld for or on account of any Indemnifiable Tax
in respect of which the other party is not required to pay an additional amount
(other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a
result of a party consolidating or amalgamating with, or merging with or into,
or transferring all or substantially all its assets to, another entity (which
will be the Affected Party) where such action does not constitute an event
described in Section 5(a)(viii);

       

      (iv)           Credit Event Upon
Merger. If “Credit Event Upon Merger” is specified in the Schedule as
applying to the party, such party (“X”), any Credit Support Provider of X or any
applicable Specified Entity of X consolidates or amalgamates with, or merges
with or into, or transfers all or substantially all its assets to, another
entity and such action does not constitute an event described in Section
5(a)(viii) but the creditworthiness of the resulting, surviving or transferee
entity is materially weaker than that of X, such Credit Support Provider or such
Specified Entity, as the case may be, immediately prior to such action (and, in
such event, X or its successor or transferee, as appropriate, will be the
Affected Party); or

       

      (v)           Additional
Termination Event. If any “Additional Termination Event” is specified in
the Schedule or any Confirmation as applying, the occurrence of such event (and,
in such event, the Affected Party or Affected Parties shall be as specified for
such Additional Termination Event in the Schedule or such
Confirmation).

       

      
        	
                (c)

              	
                Event of
      Default and Illegality. If an event or circumstance which would
      otherwise constitute or give rise to an Event of Default also constitutes
      an Illegality, it will be treated as an Illegality and will not constitute
      an Event of Default.

              

      

       

      

      
        
          
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                6.

              	
                Early
      Termination

              

      

       

      (a)           Right to
Terminate Following Event of Default. If at any time an Event of Default
with respect to a party (the “Defaulting Party”) has occurred and is then
continuing, the other party (the “Non-defaulting Party”) may, by not more than
20 days notice to the Defaulting Party specifying the relevant Event of Default,
designate a day not earlier than the day such notice is effective as an Early
Termination Date in respect of all outstanding Transactions. If, however,
“Automatic Early Termination” is specified in the Schedule as applying to a
party, then an Early Termination Date in respect of all outstanding Transactions
will occur immediately upon the occurrence with respect to such party of an
Event of Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the
extent analogous thereto, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto,
(8).

       

      
        	
                (b)

              	
                Right to
      Terminate Following Termination
Event.

              

      

       

      (i)           Notice. If
a Termination Event occurs, an Affected Party will, promptly upon becoming aware
of it, notify the other party, specifying the nature of that Termination Event
and each Affected Transaction and will also give such other information about
that Termination Event as the other party may reasonably require.

       

      (ii)           Transfer to Avoid
Termination Event. If either an Illegality under Section 5(b)(i)(1) or a
Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon
Merger occurs and the Burdened Party is the Affected Party, the Affected Party
will, as a condition to its right to designate an Early Termination Date under
Section 6(b)(iv), use all reasonable efforts (which will not require such party
to incur a loss, excluding immaterial, incidental expenses) to transfer within
20 days after it gives notice under Section 6(b)(i) all its rights and
obligations under this Agreement in respect of the Affected Transactions to
another of its Offices or Affiliates so that such Termination Event ceases to
exist.

       

      If the
Affected Party is not able to make such a transfer it will give notice to the
other party to that effect within such 20 day period, whereupon the other party
may effect such a transfer within 30 days after the notice is given under
Section 6(b)(i).

       

      Any such
transfer by a party under this Section 6(b)(ii) will be subject to and
conditional upon the prior written consent of the other party, which consent
will not be withheld if such other party’s policies in effect at such time would
permit it to enter into transactions with the transferee on the terms
proposed.

       

      (iii)           Two Affected
Parties. If an Illegality under Section 5(b)(i)(1) or a Tax Event occurs
and there are two Affected Parties, each party will use all reasonable efforts
to reach agreement within 30 days after notice thereof is given under Section
6(b)(i) on action to avoid that Termination Event.

       

      (iv)           Right to
Terminate. If: —

       

      (1)           a
transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as the
case may be, has not been effected with respect to all Affected Transactions
within 30 days after an Affected Party gives notice under Section 6(b)(i);
or

       

      (2)           an
Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional
Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened
Party is not the Affected Party,

       

      either
party in the case of an Illegality, the Burdened Party in the case of a Tax
Event Upon Merger, any Affected Party in the case of a Tax Event or an
Additional Termination Event if there is more than one Affected Party, or the
party which is not the Affected Party in the case of a Credit Event Upon Merger
or an Additional Termination Event if there is only one Affected Party may, by
not more than 20 days notice to the other party and provided that the relevant
Termination Event is

      
        
          
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      then
continuing, designate a day not earlier than the day such notice is effective as
an Early Termination Date in respect of all Affected Transactions.

       

      
        	
                (c)

              	
                Effect of
      Designation.

              

      

       

      (i)           If
notice designating an Early Termination Date is given under Section 6(a) or (b),
the Early Termination Date will occur on the date so designated, whether or not
the relevant Event of Default or Termination Event is then
continuing.

       

      (ii)           Upon
the occurrence or effective designation of an Early Termination Date, no further
payments or deliveries under Section 2(a)(i) or 2(e) in respect of the
Terminated Transactions will be required to be made, but without prejudice to
the other provisions of this Agreement. The amount, if any, payable in respect
of an Early Termination Date shall be determined pursuant to Section
6(e).

       

      
        	
                (d)

              	
                Calculations.

              

      

       

      (i)           Statement.
On or as soon as reasonably practicable following the occurrence of an Early
Termination Date, each party will make the calculations on its part, if any,
contemplated by Section 6(e) and will provide to the other party a statement (1)
showing, in reasonable detail, such calculations (including all relevant
quotations and specifying any amount payable under Section 6(e)) and (2) giving
details of the relevant account to which any amount payable to it is to be paid.
In the absence of written confirmation from the source of a quotation obtained
in determining a Market Quotation, the records of the party obtaining such
quotation will be conclusive evidence of the existence and accuracy of such
quotation.

       

      (ii)           Payment
Date. An amount calculated as being due in respect of any Early
Termination Date under Section 6(e) will be payable on the day that notice of
the amount payable is effective (in the case of an Early Termination Date which
is designated or occurs as a result of an Event of Default) and on the day which
is two Local Business Days after the day on which notice of the amount payable
is effective (in the case of an Early Termination Date which is designated as a
result of a Termination Event). Such amount will be paid together with (to the
extent permitted under applicable law) interest thereon (before as well as after
judgment) in the Termination Currency, from (and including) the relevant Early
Termination Date to (but excluding) the date such amount is paid, at the
Applicable Rate. Such interest will be calculated on the basis of daily
compounding and the actual number of days elapsed.

       

      
        	
                (e)

              	
                Payments on
      Early Termination. If an Early Termination Date occurs, the
      following provisions shall apply based on the parties’ election in the
      Schedule of a payment measure, either “Market Quotation” or “Loss”, and a
      payment method, either the “First Method” or the “Second Method”. If the
      parties fail to designate a payment measure or payment method in the
      Schedule, it will be deemed that “Market Quotation” or the “Second
      Method”, as the case may be, shall apply. The amount, if any, payable in
      respect of an Early Termination Date and determined pursuant to this
      Section will be subject to any
Set-off.

              

      

       

      (i)           Events of
Default. If the Early Termination Date results from an Event of Default:
—

       

      (1)           First Method and Market
Quotation. If the First Method and Market Quotation apply, the Defaulting
Party will pay to the Non-defaulting Party the excess, if a positive number, of
(A) the sum of the Settlement Amount (determined by the Non-defaulting Party) in
respect of the Terminated Transactions and the Termination Currency Equivalent
of the Unpaid Amounts owing to the Non-defaulting Party over (B) the Termination
Currency Equivalent of the Unpaid Amounts owing to the Defaulting
Party.

       

      (2)           First Method and Loss. If the
First Method and Loss apply, the Defaulting Party will pay to the Non-defaulting
Party, if a positive number, the Non- defaulting Party’s Loss in respect of this
Agreement.

       

      (3)           Second Method and Market
Quotation. If the Second Method and Market Quotation apply, an amount
will be payable equal to (A) the sum of the Settlement Amount

      
        
          
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      (determined
by the Non-defaulting Party) in respect of the Terminated Transactions and the
Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party less (B) the Termination Currency Equivalent of the Unpaid
Amounts owing to the Defaulting Party. If that amount is a positive number, the
Defaulting Party will pay it to the Non-defaulting Party; if it is a negative
number, the Non-defaulting Party will pay the absolute value of that amount to
the Defaulting Party.

       

      (4)           Second Method and Loss. If
the Second Method and Loss apply, an amount will be payable equal to the
Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party;
if it is a negative number, the Non-defaulting Party will pay the absolute value
of that amount to the Defaulting Party.

       

      (ii)           Termination
Events. If the Early Termination Date results from a Termination Event:
—

       

      (1)           One Affected Party. If there
is one Affected Party, the amount payable will be determined in accordance with
Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss
applies, except that, in either case, references to the Defaulting Party and to
the Non-defaulting Party will be deemed to be references to the Affected Party
and the party which is not the Affected Party, respectively, and, if Loss
applies and fewer than all the Transactions are being terminated, Loss shall be
calculated in respect of all Terminated Transactions.

       

      (2)     Two Affected Parties. If
there are two Affected Parties: —

       

      (A)                 if
Market Quotation applies, each party will determine a Settlement Amount in
respect of the Terminated Transactions, and an amount will be payable equal to
(I) the sum of (a) one-half of the difference between the Settlement Amount of
the party with the higher Settlement Amount (“X”) and the Settlement Amount of
the party with the lower Settlement Amount (“Y”) and (b) the Termination
Currency Equivalent of the Unpaid Amounts owing to X less (II) the Termination
Currency Equivalent of the Unpaid Amounts owing to Y; and

       

      (B)                 if
Loss applies, each party will determine its Loss in respect of this Agreement
(or, if fewer than all the Transactions are being terminated, in respect of all
Terminated Transactions) and an amount will be payable equal to one-half of the
difference between the Loss of the party with the higher Loss (“X”) and the Loss
of the party with the lower Loss (“Y”).

       

      If the
amount payable is a positive number, Y will pay it to X; if it is a negative
number, X will pay the absolute value of that amount to Y.

       

      (iii)           Adjustment for
Bankruptcy. In circumstances where an Early Termination Date occurs
because “Automatic Early Termination” applies in respect of a party, the amount
determined under this Section 6(e) will be subject to such adjustments as are
appropriate and permitted by law to reflect any payments or deliveries made by
one party to the other under this Agreement (and retained by such other party)
during the period from the relevant Early Termination Date to the date for
payment determined under Section 6(d)(ii).

       

      (iv)           Pre-Estimate.
The parties agree that if Market Quotation applies an amount recoverable under
this Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such
amount is payable for the loss of bargain and the loss of protection against
future risks and except as otherwise provided in this Agreement neither party
will be entitled to recover any additional damages as a consequence of such
losses.

       

      

      
        
          
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                7.

              	
                Transfer

              

      

       

      Subject
to Section 6(b)(ii), neither this Agreement nor any interest or obligation in or
under this Agreement may be transferred (whether by way of security or
otherwise) by either party without the prior written consent of the other party,
except that: —

       

      (a)           a
party may make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all its assets to, another entity (but without prejudice to any other right or
remedy under this Agreement); and

       

      (b)           a
party may make such a transfer of all or any part of its interest in any amount
payable to it from a Defaulting Party under Section 6(e).

       

      Any
purported transfer that is not in compliance with this Section will be
void.

       

      
        	
                8.

              	
                Contractual
      Currency

              

      

       

      (a)           Payment in the
Contractual Currency. Each payment under this Agreement will be made in
the relevant currency specified in this Agreement for that payment (the
“Contractual Currency”). To the extent permitted by applicable law, any
obligation to make payments under this Agreement in the Contractual Currency
will not be discharged or satisfied by any tender in any currency other than the
Contractual Currency, except to the extent such tender results in the actual
receipt by the party to which payment is owed, acting in a reasonable manner and
in good faith in converting the currency so tendered into the Contractual
Currency, of the full amount in the Contractual Currency of all amounts payable
in respect of this Agreement. If for any reason the amount in the Contractual
Currency so received falls short of the amount in the Contractual Currency
payable in respect of this Agreement, the party required to make the payment
will, to the extent permitted by applicable law, immediately pay such additional
amount in the Contractual Currency as may be necessary to compensate for the
shortfall. If for any reason the amount in the Contractual Currency so received
exceeds the amount in the Contractual Currency payable in respect of this
Agreement, the party receiving the payment will refund promptly the amount of
such excess.

       

      (b)           Judgments.
To the extent permitted by applicable law, if any judgment or order expressed in
a currency other than the Contractual Currency is rendered (i) for the payment
of any amount owing in respect of this Agreement, (ii) for the payment of any
amount relating to any early termination in respect of this Agreement or (iii)
in respect of a judgment or order of another court for the payment of any amount
described in (i) or (ii) above, the party seeking recovery, after recovery in
full of the aggregate amount to which such party is entitled pursuant to the
judgment or order, will be entitled to receive immediately from the other party
the amount of any shortfall of the Contractual Currency received by such party
as a consequence of sums paid in such other currency and will refund promptly to
the other party any excess of the Contractual Currency received by such party as
a consequence of sums paid in such other currency if such shortfall or such
excess arises or results from any variation between the rate of exchange at
which the Contractual Currency is converted into the currency of the judgment or
order for the purposes of such judgment or order and the rate of exchange at
which such party is able, acting in a reasonable manner and in good faith in
converting the currency received into the Contractual Currency, to purchase the
Contractual Currency with the amount of the currency of the judgment or order
actually received by such party. The term “rate of exchange” includes, without
limitation, any premiums and costs of exchange payable in connection with the
purchase of or conversion into the Contractual Currency.

       

      (c)           Separate
Indemnities. To the extent permitted by applicable law, these indemnities
constitute separate and independent obligations from the other obligations in
this Agreement, will be enforceable as separate and independent causes of
action, will apply notwithstanding any indulgence granted by the party to which
any payment is owed and will not be affected by judgment being obtained or claim
or proof being made for any other sums payable in respect of this
Agreement.

       

      (d)           Evidence of
Loss. For the purpose of this Section 8, it will be sufficient for a
party to demonstrate that it would have suffered a loss had an actual exchange
or purchase been made.

      
        
          
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                9.

              	
                Miscellaneous

              

      

       

      (a)           Entire
Agreement. This Agreement constitutes the entire agreement and
understanding of the parties with respect to its subject matter and supersedes
all oral communication and prior writings with respect thereto.

       

      (b)           Amendments.
No amendment, modification or waiver in respect of this Agreement will be
effective unless in writing (including a writing evidenced by a facsimile
transmission) and executed by each of the parties or confirmed by an exchange of
telexes or electronic messages on an electronic messaging system.

       

      (c)           Survival of
Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the
obligations of the parties under this Agreement will survive the termination of
any Transaction.

       

      (d)           Remedies
Cumulative. Except as provided in this Agreement, the rights, powers,
remedies and privileges provided in this Agreement are cumulative and not
exclusive of any rights, powers, remedies and privileges provided by
law.

       

      (e)           Counterparts and
Confirmations.

       

      (i)           This
Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission),
each of which will be deemed an original.

       

      (ii)           The
parties intend that they are legally bound by the terms of each Transaction from
the moment they agree to those terms (whether orally or otherwise). A
Confirmation shall he entered into as soon as practicable and may he executed
and delivered in counterparts (including by facsimile transmission) or be
created by an exchange of telexes or by an exchange of electronic messages on an
electronic messaging system, which in each case will be sufficient for all
purposes to evidence a binding supplement to this Agreement. The parties will
specify therein or through another effective means that any such counterpart,
telex or electronic message constitutes a Confirmation.

       

      (f)           No Waiver of
Rights. A failure or delay in exercising any right, power or privilege in
respect of this Agreement will not be presumed to operate as a waiver, and a
single or partial exercise of any right, power or privilege will not be presumed
to preclude any subsequent or further exercise, of that right, power or
privilege or the exercise of any other right, power or privilege.

       

      (g)           Headings.
The headings used in this Agreement are for convenience of reference only and
are not to affect the construction of or to be taken into consideration in
interpreting this Agreement.

       

      
        	
                10.

              	
                Offices;
      Multibranch Parties

              

      

       

      (a)           If
Section 10(a) is specified in the Schedule as applying, each party that enters
into a Transaction through an Office other than its head or home office
represents to the other party that, notwithstanding the place of booking office
or jurisdiction of incorporation or organisation of such party, the obligations
of such party are the same as if it had entered into the Transaction through its
head or home office. This representation will be deemed to be repeated by such
party on each date on which a Transaction is entered into.

       

      (b)           Neither
party may change the Office through which it makes and receives payments or
deliveries for the purpose of a Transaction without the prior written consent of
the other party.

       

      (c)           If
a party is specified as a Multibranch Party in the Schedule, such Multibranch
Party may make and receive payments or deliveries under any Transaction through
any Office listed in the Schedule, and the Office through which it makes and
receives payments or deliveries with respect to a Transaction will be specified
in the relevant Confirmation.

      
        
          
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                11.

              	
                Expenses

              

      

       

      A
Defaulting Party will, on demand, indemnify and hold harmless the other party
for and against all reasonable out-of-pocket expenses, including legal fees and
Stamp Tax, incurred by such other party by reason of the enforcement and
protection of its rights under this Agreement or any Credit Support Document to
which the Defaulting Party is a party or by reason of the early termination of
any Transaction, including, but not limited to, costs of
collection.

       

      
        	
                12.

              	
                Notices

              

      

       

      (a)           Effectiveness.
Any notice or other communication in respect of this Agreement may be given in
any manner set forth below (except that a notice or other communication under
Section 5 or 6 may not be given by facsimile transmission or electronic
messaging system) to the address or number or in accordance with the electronic
messaging system details provided (see the Schedule) and will be deemed
effective as indicated:—

       

      (i)           if
in writing and delivered in person or by courier, on the date it is
delivered;

       

      (ii)           if
sent by telex, on the date the recipient’s answerback is received;

       

      (iii)           if
sent by facsimile transmission, on the date that transmission is received by a
responsible employee of the recipient in legible form (it being agreed that the
burden of proving receipt will be on the sender and will not be met by a
transmission report generated by the sender’s facsimile machine);

       

      (iv)           if
sent by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date that mail is delivered or its delivery
is attempted; or

       

      (v)           if
sent by electronic messaging system, on the date that electronic message is
received,

       

      unless
the date of that delivery (or attempted delivery) or that receipt, as
applicable, is not a Local Business Day or that communication is delivered (or
attempted) or received, as applicable, after the close of business on a Local
Business Day, in which case that communication shall be deemed given and
effective on the first following day that is a Local Business Day.

       

      (b)           Change of
Addresses. Either party may by notice to the other change the address,
telex or facsimile number or electronic messaging system details at which
notices or other communications are to be given to it.

       

      
        	
                13.

              	
                Governing
      Law and Jurisdiction

              

      

       

      (a)           Governing
Law. This Agreement will be governed by and construed in accordance with
the law specified in the Schedule.

       

      (b)           Jurisdiction.
With respect to any suit, action or proceedings relating to this Agreement
(“Proceedings”), each party irrevocably:—

       

      (i)           submits
to the jurisdiction of the English courts, if this Agreement is expressed to be
governed by English law, or to the non- exclusive jurisdiction of the courts of
the State of New York and the United States District Court located in the
Borough of Manhattan in New York City, if this Agreement is expressed to be
governed by the laws of the State of New York; and

       

      (ii)           waives
any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings
have been brought in an inconvenient forum and further waives the right to
object, with respect to such Proceedings, that such court does not have any
jurisdiction over such party.

       

      Nothing
in this Agreement precludes either party from bringing Proceedings in any other
jurisdiction (outside, if this Agreement is expressed to be governed by English
law, the Contracting States, as defined in Section 1(3) of the Civil
Jurisdiction and Judgments Act 1982 or any modification, extension or re-
enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

      
        
          
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      (c)           Service of
Process. Each party irrevocably appoints the Process Agent (if any)
specified opposite its name in the Schedule to receive, for it and on its
behalf, service of process in any Proceedings. If for any reason any party’s
Process Agent is unable to act as such, such party will promptly notify the
other party and within 30 days appoint a substitute process agent acceptable to
the other party. The parties irrevocably consent to service of process given in
the manner provided for notices in Section 12. Nothing in this Agreement will
affect the right of either party to serve process in any other manner permitted
by law.

       

      (d)           Waiver of
Immunities. Each party irrevocably waives, to the fullest extent
permitted by applicable law, with respect to itself and its revenues and assets
(irrespective of their use or intended use), all immunity on the grounds of
sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any
court, (iii) relief by way of injunction, order for specific performance or for
recovery of property, (iv) attachment of its assets (whether before or after
judgment) and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by
applicable law, that it will not claim any such immunity in any
Proceedings.

       

      
        	
                14.

              	
                Definitions

              

      

       

      As used
in this Agreement:—

       

      “Additional
Termination Event” has the meaning specified in Section
5(b).

       

      “Affected
Party” has the meaning specified in Section 5(b).

       

      “Affected
Transactions” means (a) with respect to any Termination Event consisting
of an Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected
by the occurrence of such Termination Event and (b) with respect to any other
Termination Event, all Transactions.

       

      “Affiliate”
means, subject to the Schedule, in relation to any person, any entity
controlled, directly or indirectly, by the person, any entity that controls,
directly or indirectly, the person or any entity directly or indirectly under
common control with the person. For this purpose, “control” of any entity or
person means ownership of a majority of the voting power of the entity or
person.

       

      “Applicable
Rate” means:—

       

      (a)           in
respect of obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

       

      (b)           in
respect of an obligation to pay an amount under Section 6(e) of either party
from and after the date (determined in accordance with Section 6(d)(ii)) on
which that amount is payable, the Default Rate;

       

      (c)           in
respect of all other obligations payable or deliverable (or which would have
been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate;
and

       

      (d)           in
all other cases, the Termination Rate.

       

      “Burdened
Party” has the meaning specified in Section 5(b).

       

      “Change in Tax
Law” means the enactment, promulgation, execution or ratification of, or
any change in or amendment to, any law (or in the application or official
interpretation of any law) that occurs on or after the date on which the
relevant Transaction is entered into.

       

      “consent”
includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

       

      “Credit Event
Upon Merger” has the meaning specified in Section 5(b).

       

      “Credit Support
Document” means any agreement or instrument that is specified as such in
this Agreement.

       

      “Credit Support
Provider” has the meaning specified in the Schedule.

       

      “Default
Rate” means a rate per annum equal to the cost (without proof or evidence
of any actual cost) to the relevant payee (as certified by it) if it were to
fund or of funding the relevant amount plus 1% per annum.

      
        
          
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      “Defaulting
Party” has the meaning specified in Section 6(a).

       

      “Early
Termination Date” means the date determined in accordance with Section
6(a) or 6(b)(iv).

       

      “Event of
Default” has the meaning specified in Section 5(a) and, if applicable, in
the Schedule.

       

      “Illegality”
has the meaning specified in Section 5(b).

       

      “Indemnifiable
Tax” means any Tax other than a Tax that would not be imposed in respect
of a payment under this Agreement but for a present or former connection between
the jurisdiction of the government or taxation authority imposing such Tax and
the recipient of such payment or a person related to such recipient (including,
without limitation, a connection arising from such recipient or related person
being or having been a citizen or resident of such jurisdiction, or being or
having been organised, present or engaged in a trade or business in such
jurisdiction, or having or having had a permanent establishment or fixed place
of business in such jurisdiction, but excluding a connection arising solely from
such recipient or related person having executed, delivered, performed its
obligations or received a payment under, or enforced, this Agreement or a Credit
Support Document).

       

      “law”
includes any treaty, law, rule or regulation (as modified, in the case of tax
matters, by the practice of any relevant governmental revenue authority) and
“lawful” and “unlawful” will be construed accordingly.

       

      “Local Business
Day” means, subject to the Schedule, a day on which commercial banks are
open for business (including dealings in foreign exchange and foreign currency
deposits) (a) in relation to any obligation under Section 2(a)(i), in the
place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) in relation to
any other payment, in the place where the relevant account is located and, if
different, in the principal financial centre, if any, of the currency of such
payment, (c) in relation to any notice or other communication, including notice
contemplated under Section 5(a)(i), in the city specified in the address for
notice provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located and
(d) in relation to Section 5(a)(v)(2), in the relevant locations for performance
with respect to such Specified Transaction.

       

      “Loss”
means, with respect to this Agreement or one or more Terminated Transactions, as
the case may be, and a party, the Termination Currency Equivalent of an amount
that party reasonably determines in good faith to be its total losses and costs
(or gain, in which case expressed as a negative number) in connection with this
Agreement or that Terminated Transaction or group of Terminated Transactions, as
the case may be, including any loss of bargain, cost of funding or, at the
election of such party but without duplication, loss or cost incurred as a
result of its terminating, liquidating, obtaining or reestablishing any hedge or
related trading position (or any gain resulting from any of them). Loss includes
losses and costs (or gains) in respect of any payment or delivery required to
have been made (assuming satisfaction of each applicable condition precedent) on
or before the relevant Early Termination Date and not made, except, so as to
avoid duplication, if Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies. Loss
does not include a party’s legal fees and out-of-pocket expenses referred to
under Section 11. A party will determine its Loss as of the relevant Early
Termination Date, or, if that is not reasonably practicable, as of the earliest
date thereafter as is reasonably practicable. A party may (but need not)
determine its Loss by reference to quotations of relevant rates or prices from
one or more leading dealers in the relevant markets.

       

      “Market
Quotation” means, with respect to one or more Terminated Transactions and
a party making the determination, an amount determined on the basis of
quotations from Reference Market-makers. Each quotation will be for an amount,
if any, that would be paid to such party (expressed as a negative number) or by
such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document
with respect to the obligations of such party) and the quoting Reference
Market-maker to enter into a transaction (the “Replacement Transaction”) that
would have the effect of preserving for such party the economic equivalent of
any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition precedent)
by the parties under Section 2(a)(i) in respect of such Terminated Transaction
or group of Terminated Transactions that would, but for the occurrence of the
relevant Early Termination Date, have been required after that date. For this
purpose, Unpaid Amounts in respect of the Terminated Transaction or group of
Terminated Transactions are to be excluded but, without limitation, any payment
or delivery that

      
        
          
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      would,
but for the relevant Early Termination Date, have been required (assuming
satisfaction of each applicable condition precedent) after that Early
Termination Date is to be included. The Replacement Transaction would be subject
to such documentation as such party and the Reference Market-maker may, in good
faith, agree. The party making the determination (or its agent) will request
each Reference Market-maker to provide its quotation to the extent reasonably
practicable as of the same day and time (without regard to different time zones)
on or as soon as reasonably practicable after the relevant Early Termination
Date. The day and time as of which those quotations are to be obtained will be
selected in good faith by the party obliged to make a determination under
Section 6(e), and, if each party is so obliged, after consultation with the
other. If more than three quotations are provided, the Market Quotation will be
the arithmetic mean of the quotations, without regard to the quotations having
the highest and lowest values. If exactly three such quotations are provided,
the Market Quotation will be the quotation remaining after disregarding the
highest and lowest quotations. For this purpose, if more than one quotation has
the same highest value or lowest value, then one of such quotations shall be
disregarded. If fewer than three quotations are provided, it will be deemed that
the Market Quotation in respect of such Terminated Transaction or group of
Terminated Transactions cannot be determined.

       

      “Non-default
Rate” means a rate per annum equal to the cost (without proof or evidence
of any actual cost) to the Non-defaulting Party (as certified by it) if it were
to fund the relevant amount.

       

      “Non-defaulting
Party” has the meaning specified in Section 6(a).

       

      “Office”
means a branch or office of a party, which may be such party’s head or home
office.

       

      “Potential Event
of Default” means any event which, with the giving of notice or the lapse
of time or both, would constitute an Event of Default.

       

      “Reference
Market-makers” means four leading dealers in the relevant market selected
by the party determining a Market Quotation in good faith (a) from among dealers
of the highest credit standing which satisfy all the criteria that such party
applies generally at the time in deciding whether to offer or to make an
extension of credit and (b) to the extent practicable, from among such dealers
having an office in the same city.

       

      “Relevant
Jurisdiction” means, with respect to a party, the jurisdictions (a) in
which the party is incorporated, organised, managed and controlled or considered
to have its seat, (b) where an Office through which the party is acting for
purposes of this Agreement is located, (c) in which the party executes this
Agreement and (d) in relation to any payment, from or through which such payment
is made.

       

      “Scheduled
Payment Date” means a date on which a payment or delivery is to be made
under Section 2(a)(i) with respect to a Transaction.

       

      “Set-off”
means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount
under Section 6 is entitled or subject (whether arising under this Agreement,
another contract, applicable law or otherwise) that is exercised by, or imposed
on, such payer.

       

      “Settlement
Amount” means, with respect to a party and any Early Termination Date,
the sum of: —

       

      (a)           the
Termination Currency Equivalent of the Market Quotations (whether positive or
negative) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation is determined; and

       

      (b)           such
party’s Loss (whether positive or negative and without reference to any Unpaid
Amounts) for each Terminated Transaction or group of Terminated Transactions for
which a Market Quotation cannot be determined or would not (in the reasonable
belief of the party making the determination) produce a commercially reasonable
result.

       

       “Specified
Entity” has the meanings specified in the Schedule.

       

      “Specified
Indebtedness” means, subject to the Schedule, any obligation (whether
present or future, contingent or otherwise, as principal or surety or otherwise)
in respect of borrowed money.

      
        
          
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      “Specified
Transaction” means, subject to the Schedule, (a) any transaction
(including an agreement with respect thereto) now existing or hereafter entered
into between one party to this Agreement (or any Credit Support Provider of such
party or any applicable Specified Entity of such party) and the other party to
this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap
transaction, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap, equity or equity index option, bond option,
interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross- currency rate
swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions), (b) any combination of
these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

       

      “Stamp
Tax” means any stamp, registration, documentation or similar
tax.

       

      “Tax”
means any present or future tax, levy, impost, duty, charge, assessment or fee
of any nature (including interest, penalties and additions thereto) that is
imposed by any government or other taxing authority in respect of any payment
under this Agreement other than a stamp, registration, documentation or similar
tax.

       

      “Tax
Event” has the meaning specified in Section 5(b).

       

      “Tax Event Upon
Merger” has the meaning specified in Section 5(b).

       

      “Terminated
Transactions” means with respect to any Early Termination Date (a) if
resulting from a Termination Event, all Affected Transactions and (b) if
resulting from an Event of Default, all Transactions (in either case) in effect
immediately before the effectiveness of the notice designating that Early
Termination Date (or, if “Automatic Early Termination” applies, immediately
before that Early Termination Date).

       

      “Termination
Currency” has the meaning specified in the Schedule.

       

      “Termination
Currency Equivalent” means, in respect of any amount denominated in the
Termination Currency, such Termination Currency amount and, in respect of any
amount denominated in a currency other than the Termination Currency (the “Other
Currency”), the amount in the Termination Currency determined by the party
making the relevant determination as being required to purchase such amount of
such Other Currency as at the relevant Early Termination Date, or, if the
relevant Market Quotation or Loss (as the case may be), is determined as of a
later date, that later date, with the Termination Currency at the rate equal to
the spot exchange rate of the foreign exchange agent (selected as provided
below) for the purchase of such Other Currency with the Termination Currency at
or about 11:00 a. m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a rate
for the purchase of such Other Currency for value on the relevant Early
Termination Date or that later date. The foreign exchange agent will, if only
one party is obliged to make a determination under Section 6(e), be selected in
good faith by that party and otherwise will be agreed by the
parties.

       

      “Termination
Event” means an Illegality, a Tax Event or a Tax Event Upon Merger or, if
specified to be applicable, a Credit Event Upon Merger or an Additional
Termination Event.

       

      “Termination
Rate” means a rate per annum equal to the arithmetic mean of the cost
(without proof or evidence of any actual cost) to each party (as certified by
such party) if it were to fund or of funding such amounts.

       

      “Unpaid
Amounts” owing to any party means, with respect to an Early Termination
Date, the aggregate of (a) in respect of all Terminated Transactions, the
amounts that became payable (or that would have become payable but for Section
2(a)(iii)) to such party under Section 2(a)(i) on or prior to such Early
Termination Date and which remain unpaid as at such Early Termination Date and
(b) in respect of each Terminated Transaction, for each obligation under Section
2(a)(i) which was (or would have been but for Section 2(a)(iii)) required to be
settled by delivery to such party on or prior to such Early Termination Date and
which has not been so settled as at such Early Termination Date, an amount equal
to the fair market value of that which was (or would have been) required to be
delivered as of the originally scheduled date for delivery, in each case
together with (to the extent permitted under applicable law) interest, in the
currency of

      
        
          
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      such
amounts, from (and including) the date such amounts or obligations were or would
have been required to have been paid or performed to (but excluding) such Early
Termination Date, at the Applicable Rate. Such amounts of interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b) above
shall be reasonably determined by the party obliged to make the determination
under Section 6(e) or, if each party is so obliged, it shall be the average of
the Termination Currency Equivalents of the fair market values reasonably
determined by both parties.

      

       

      IN
WITNESS WHEREOF the parties have executed this document on the respective dates
specified below with effect from the date specified on the first page of this
document.

      

      

      
        	
                WACHOVIA
      BANK, NATIONAL ASSOCIATION

                (Name
      of Party)

                 

                 

                By: /s/ John
      Miechkowski

                Name:
      John Miechkowski

                Title:
      Director

                Date:09.23.08

              	 
      	
                LAKELAND
      INDUSTRIES, INC.

                (Name
      of Party)

                 

                 

                 

                By:
      /s/ Gary
      Pokrassa

                Name:
      Gary Pokrassa

                Title:
      Chief Financial Officer

                Date:
      09.22.08

              

      

      

        ISDA® 1992 

       

       

       

       

      18

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