<SEC-DOCUMENT>0001144204-13-031044.txt : 20130522
<SEC-HEADER>0001144204-13-031044.hdr.sgml : 20130522
<ACCEPTANCE-DATETIME>20130522141837
ACCESSION NUMBER:		0001144204-13-031044
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20130712
FILED AS OF DATE:		20130522
DATE AS OF CHANGE:		20130522
EFFECTIVENESS DATE:		20130522

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LAKELAND INDUSTRIES INC
		CENTRAL INDEX KEY:			0000798081
		STANDARD INDUSTRIAL CLASSIFICATION:	ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
		IRS NUMBER:				133115216
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-15535
		FILM NUMBER:		13864485

	BUSINESS ADDRESS:	
		STREET 1:		701-7 KOEHLER AVENUE
		CITY:			RONKONKOMA
		STATE:			NY
		ZIP:			11779
		BUSINESS PHONE:		6319819700

	MAIL ADDRESS:	
		STREET 1:		701- 7 KOEHLER AVENUE
		CITY:			RONKONKOMA
		STATE:			NY
		ZIP:			11779
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>v345899_def14a.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>United States</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities and Exchange Commission</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SCHEDULE 14A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Rule 14a-101)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Information Required In Proxy Statement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Schedule 14A Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Proxy Statement Pursuant to Section 14(a)
of the Securities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Exchange Act of 1934<B> </B>(Amendment No.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filed by the Registrant&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">x</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filed by a Party other than the Registrant&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Preliminary Proxy Statement</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: left">Confidential, For Use of the Commission Only (as permitted
by Rule&nbsp;14a-6(e)(2))</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">x</FONT></TD><TD STYLE="text-align: justify">Definitive Proxy Statement</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: justify">Definitive Additional Materials</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD STYLE="text-align: left">Soliciting Material Pursuant to &sect; 240.14a-12</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Lakeland Industries, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name of Registrant as Specified In Its
Charter)<FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Name of Person(s) Filing Proxy Statement,
if other than the Registrant)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="3">Payment of Filing Fee (Check the appropriate box):</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">x</FONT></TD>
    <TD COLSPAN="2">No fee required.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD COLSPAN="2">Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(4) and 0-11.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 5%">(1)</TD>
    <TD STYLE="width: 87%">Title of each class of securities to which transaction applies:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(2)</TD>
    <TD>Aggregate number of securities to which transaction applies:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(3)</TD>
    <TD>Per unit price or other underlying value of transaction computed pursuant to Exchange Act &nbsp;&nbsp;Rule&nbsp;0-11 (set forth the amount on which the filing fee is calculated and state how it was &nbsp;determined):</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(4)</TD>
    <TD>Proposed maximum aggregate value of transaction:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(5)</TD>
    <TD>Total fee paid:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD COLSPAN="2">Fee paid previously with preliminary materials.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD COLSPAN="2">Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(1)</TD>
    <TD>Amount Previously Paid:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(2)</TD>
    <TD>Form, Schedule or Registration Statement No.:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(3)</TD>
    <TD>Filing Party:</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(4)</TD>
    <TD>Date Filed:</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="text-align: center; vertical-align: bottom">
    <TD STYLE="width: 100%; font-size: 10pt"><img src="tlogo.jpg"><FONT STYLE="font-size: 12pt"><B><I> Lakeland Industries, Inc.</I></B></FONT><B><I> </I></B></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">May 20, 2013</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">Dear Stockholder,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">I am pleased to extend to you
my personal invitation to attend the 2013 Annual Meeting of Stockholders of Lakeland Industries, Inc. (the &ldquo;Company&rdquo;)
on Friday, July 12, 2013 at 10:00 a.m. at the Hilton Garden Inn, 3485 Veterans Memorial Highway, Ronkonkoma, NY 11779.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The accompanying Notice of Annual
Meeting and Proxy Statement contain a description of the formal business to be acted upon by the stockholders. At the meeting,
we intend to discuss our performance for the fiscal year ended January 31, 2013 and our plans for the current fiscal year. Certain
officers of the Company will be available to answer any questions you may have.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">While I am looking forward to
seeing you at the meeting, it is very important that those of you who cannot personally attend assure your shares are represented.
I urge you therefore to sign and date the enclosed form of proxy and return it promptly in the accompanying envelope. If you attend
the meeting, you may, if you wish, withdraw any proxy previously given and vote your shares in person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%">Sincerely,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><img src="tsig.jpg"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>Chief Executive Officer and Secretary</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="text-align: center; vertical-align: bottom">
    <TD STYLE="width: 100%; font-size: 10pt"><FONT STYLE="font-size: 10pt"><B><I><img src="tlogo.jpg"> Lakeland Industries, Inc.
    </I></B></FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6.6pt; text-align: center"><B>NOTICE OF ANNUAL MEETING OF
STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>To Be Held on Friday,
July 12, 2013</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To Our Stockholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.85in"><B>WHAT:</B></TD><TD>Our 2013 Annual Meeting of Stockholders</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.85in; text-indent: -0.85in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.85in"><B>WHEN:</B></TD><TD>Friday, July 12, 2013, at 10:00&nbsp;a.m., local time</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.85in; text-indent: -0.85in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.85in"><B>WHERE:</B></TD><TD>Hilton Garden Inn</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.85in"></TD><TD>3485 Veterans Memorial Highway</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.85in"></TD><TD>Ronkonkoma, NY 11779</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.85in; text-indent: -0.85in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.85in"><B>PURPOSE:</B></TD><TD>At this meeting, you will be asked to:</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>Elect two directors to serve for a term of three years and until their respective successors have been duly elected and qualified;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in">2.</TD><TD>Ratify the selection of Warren Averett, LLC (&ldquo;Warren Averett&rdquo;) as our independent registered public accounting
firm for the fiscal year ending January 31, 2014;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in">3.</TD><TD>Approve on an advisory basis, named executive officers compensation;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in">4.</TD><TD>Approve by non-binding advisory vote the frequency of future advisory votes on executive compensation; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in">5.</TD><TD>Transact any other business as may properly come before the Annual Meeting of Stockholders or any adjournments, postponements
or rescheduling of the Annual Meeting of Stockholders</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">Only stockholders
of record at the close of business on May 20, 2013 and owners of restricted shares that are vested in the 2012 Stock Incentive
Plan will receive notice of, and be eligible to vote at, the Annual Meeting of Stockholders or any adjournment thereof. The foregoing
items of business are more fully described in the Proxy Statement accompanying this notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT><B>Your
vote is important. Please read the Proxy Statement and the voting instructions on the enclosed proxy card. Then, whether or not
you plan to attend the Annual Meeting of Stockholders in person, and no matter how many shares you own, please sign, date and promptly
return the enclosed proxy card in the enclosed envelope, which requires no additional postage if mailed in the United States.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B>Important Notice
Regarding the Availability of Proxy Materials for the 2013 Annual Meeting of Stockholders to be held on July 12, 2013.</B> Pursuant
to Securities and Exchange Commission rules we have elected to &ldquo;full set deliver&rdquo; option of providing proxy materials
to our stockholders whereby we are delivering to all stockholders paper copies of all of our proxy materials, including a proxy
card, as well as providing access to our proxy materials on a publicly assessable website. <B>Lakeland&rsquo;s Notice of Annual
Meeting, Proxy Statement and Annual Report to Stockholders for the fiscal year ended January 31, 2013 are available on the Internet
at www.proxyvote.com.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>This Notice and Proxy
Statement are first being mailed to stockholders of record on or shortly after May 22, 2013.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-indent: -3.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">Ronkonkoma, New York</TD>
    <TD STYLE="width: 50%">By Order of the Board of Directors,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>May 20, 2013</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><img src="tsig.jpg"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">Christopher J. Ryan</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">Secretary</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img src="tlogo.jpg"><FONT STYLE="font-size: 10pt"> Lakeland
Industries, Inc.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">701 Koehler Avenue, Suite 7</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Ronkonkoma, New York 11779</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(631) 981-9700</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PROXY</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">STATEMENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Annual Meeting of Stockholder to be Held
on Friday, July 12, 2013</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">GENERAL INFORMATION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">This proxy statement
and accompanying proxy are being furnished in connection with the solicitation by the Board of Directors (&ldquo;the &ldquo;Board&rdquo;)
of Lakeland Industries, Inc., a Delaware corporation (referred to as &ldquo;Lakeland,&rdquo; the &ldquo;Company,&rdquo; &ldquo;we,&rdquo;
&ldquo;our,&rdquo; or &ldquo;us&rdquo;), of proxies to be used at the annual meeting of stockholders of Lakeland to be held on
Friday, July&nbsp;12, 2013, which we refer to as the Annual Meeting, and at any adjournment or postponement thereof. Lakeland
will bear the costs of this solicitation. This proxy statement and accompanying proxy are first being mailed to our stockholders
on or about May 22, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Who may vote</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Stockholders of Lakeland
recorded in our stock register on May 20, 2013 and holders of restricted shares that are vested in the 2012 Stock Incentive Plan
may vote at the meeting. As of that date, Lakeland had 5,353,716 shares of common stock outstanding. Each share is entitled to
one vote on each matter submitted to the stockholders at the Annual Meeting.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">How proxies work</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Lakeland&rsquo;s Board is asking for your
proxy. Giving us your proxy means you authorized us to vote your shares at the meeting in the manner you direct. You may vote for
all, some or none of our director nominees. You may also vote for or against the other proposals or abstain from voting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All proxies properly signed will, unless
a different choice is indicated, be voted &ldquo;FOR&rdquo; the elections of all nominees proposed by the Nominating and Corporate
Governance Committee, &ldquo;FOR&rdquo; the ratification of Warren Averett as our independent registered public accounting firm
for fiscal 2014, &ldquo;FOR&rdquo; the resolution approving the compensation of our named executive officers and &ldquo;FOR&rdquo;
a &ldquo;Three year&rdquo; frequency of future advisory votes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You may receive more than one proxy or
voting card depending on how you hold your shares. Shares registered in your name are covered by one card. If you hold shares through
someone else, such as a stockbroker or bank, you may get material from them asking how you want to vote. Specifically, if your
shares are held in the name of your stockbroker or bank and you wish to vote in person at the meeting, you should request your
stockbroker or bank to issue you a proxy covering your shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If any other matters come before the meeting
or any postponement or adjournment, each proxy will be voted in the discretion of the individuals named as proxies on the card.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Revoking a proxy</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You may revoke your proxy at any time before
the vote is taken by submitted a new proxy with a later date, by voting via the Internet or by telephone at a later time, by voting
in person at the meeting or by notifying Lakeland&rsquo;s Secretary in writing at the address under &ldquo;Questions&rdquo; on
page 25.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Quorum</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In order to carry on the business of the
meeting, we must have a quorum. This means at least a majority of the outstanding shares eligible to vote must be represented at
the meeting, either by proxy or in person.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Attending in Person</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Only stockholders, their proxy holders
and Lakeland guests, each of which must be properly registered as described in the Notice, may attend the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">What vote is required to approve each
proposal?</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Proposal&nbsp;No.&nbsp;1,
the election of two directors requires a plurality of the votes cast to elect a director. The two nominees receiving the most &ldquo;For&rdquo;
votes (among votes properly cast in person or by proxy) will be elected. Only votes &ldquo;For&rdquo; will affect the outcome.
Abstentions or broker non-votes, as described below, will have no effect on the outcome of the vote on Proposal&nbsp;No.&nbsp;1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Proposal No. 2, the
ratification of the appointment of Warren Averett as our independent registered public accounting firm, must receive a &ldquo;For&rdquo;
vote by the majority of the votes cast by stockholders present in person or represented by proxy and entitled to vote thereon.
In determining whether the proposal has received the requisite number of votes, abstentions will be counted as a vote against
this proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Proposal No. 3, the approval
of advisory vote on named Executive Officer Compensation, must receive a &ldquo;For&rdquo; vote by the majority of the votes cast
by stockholders present in person or represented by proxy and entitled to vote thereon. Because this vote is advisory it will not
be binding on the Board of Directors of Lakeland. Abstentions will be counted as votes cast and will have the same effect as a
vote against this proposal. Broker non-votes, as described below, will have no effect on the outcome of the vote on Proposal&nbsp;No.&nbsp;3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Proposal No. 4, the frequency
option (one year, two years or three years) receiving the plurality of the votes cast, will be the frequency that has been &ldquo;approved&rdquo;
by stockholders. Because your vote is advisory, it will not be binding on the Board of Directors of Lakeland. However, the Board
will consider the outcome of the vote when determining the frequency of future advisory votes on executive compensation. Abstentions
and broker non-votes will have no effect on Proposal No. 4.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><B>How votes are counted
and how are brokers non-votes treated?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Votes will be counted
by the inspector of election appointed for the Annual Meeting, who will separately count &ldquo;For&rdquo; votes, &ldquo;Against&rdquo;
votes, abstentions, withheld votes and broker non-votes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><FONT STYLE="font-weight: normal">A &ldquo;broker
non-vote&rdquo; is when a broker, bank or other nominee has not received voting instructions from the beneficial owner of shares
held in &ldquo;street name&rdquo; and the broker, bank or other nominee does not have, or declines to exercise, discretionary authority
to vote on a particular matter. Brokers, banks or other nominees only have discretionary authority to vote your uninstructed shares
on &ldquo;routine&rdquo; matters, but will not be allowed to vote your uninstructed shares with respect to certain &ldquo;non-routine&rdquo;
matters. Under current Nasdaq Stock Market rules, the ratification of the appointment of independent registered public accountants
(Proposal No. 2) is considered routine and your broker, bank or other nominee will be able to vote on that proposal even if it
does not receive instructions from you. The election of directors (Proposal No. 1), as well as Proposals No. 3 and No. 4, are &ldquo;non-routine&rdquo;
matters. This means that if you hold your shares through a broker, bank or other nominee in &ldquo;street name&rdquo; and do not
provide voting instructions, the broker, bank or other nominee will have the discretion to vote your shares on Proposal&nbsp;No.&nbsp;2
but not on Proposal No. 1, Proposal No. 3 and Proposal No. 4.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">How can I find out the results of the
voting at the Annual Meeting?</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Preliminary voting results
will be announced at the Annual Meeting. Final voting results will be published in a Current Report on Form 8-K to be filed with
the Securities and Exchange Commission (&ldquo;SEC&rdquo;) within four business days following the conclusion of our Annual Meeting.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>Householding
of proxy material.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in; text-align: justify"><FONT STYLE="font-weight: normal">Some banks,
brokers and other nominee record holders may be participating in the practice of &ldquo;householding&rdquo; proxy statements and
annual reports. This means that only one copy of this proxy statement may have been sent to multiple stockholders in your household.
If you would like to obtain another copy of the proxy, please contact Secretary, Lakeland Industries, Inc. 701 Koehler Avenue,
Suite 7, Ronkonkoma, New York, 11779 by mail. If you want to receive separate copies of our proxy statements and annual reports
in the future, or if you are receiving multiple copies and would like to receive only one copy for your household, you should contact
your bank, broker, or other nominee record holder.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Has the Lakeland Board made a recommendation
regarding the matters to be acted upon at the Annual Meeting?</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Lakeland Boards&rsquo;
recommends that you vote &ldquo;FOR&rdquo; the election of its two nominees for director, &ldquo;FOR&rdquo; the ratification of
the selection of Warren Averett as our independent registered public accounting firm for the fiscal year ending January&nbsp;31,
2014, &ldquo;FOR&rdquo; the approval, on an advisory basis of the named Executive Officers compensation, and &ldquo;FOR&rdquo;
a &ldquo;three year&rdquo; frequency of future advisory votes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">ELECTION OF DIRECTORS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Item 1 on the Proxy Card)</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">General</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Our Bylaw&rsquo;s provide
for a Board of Directors, or the &ldquo;Board&rdquo;, consisting of at least five and not more than seven directors. Our Board
for this year&rsquo;s voting purposes consists of seven directors, classified into three classes as nearly equal in number as
possible. As indicated below, each nominee will be elected for a three-year term, which will expire at the 2016 Annual Meeting
of Stockholders and until their successors are duly elected and qualified or until any such director&rsquo;s earlier resignation
or removal. Our Board&rsquo;s nominees are Duane Albro and Thomas McAteer. Our Nominating and Governance Committee (excluding
members who are nominees) considered the qualifications of each of the Board&rsquo;s nominees for election prior to the Annual
Meeting, and unanimously recommended that each nominee be submitted for election to the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Vote Required</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Directors are elected by a plurality of
the votes properly cast in person or by proxy. If a quorum is present and voting, the two nominees receiving the highest number
of affirmative votes will be elected. Shares represented by executed proxy cards will be voted, if authority to do so is not withheld,
for the election of the two nominees named below. Abstentions and broker non-votes will have no effect on the outcome. If any Board
nominee becomes unavailable for election as a result of an unexpected occurrence, your shares will be voted for the election of
a substitute nominee determined by our Board. Each person nominated by the Board for election has agreed to serve if elected. We
have no reason to believe that any Board nominee will be unable to serve.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">NOMINEE DIRECTORS
- CLASS III</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">Terms Expiring in
June 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; border-bottom: Black 1pt solid"><B>Name</B></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid"><B>Age</B></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 17%; border-bottom: Black 1pt solid"><B>Position</B></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 31%; border-bottom: Black 1pt solid"><B>Director Since</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Duane W. Albro</TD>
    <TD>&nbsp;</TD>
    <TD>66</TD>
    <TD>&nbsp;</TD>
    <TD>Director</TD>
    <TD>&nbsp;</TD>
    <TD>2009</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Thomas McAteer</TD>
    <TD>&nbsp;</TD>
    <TD>60</TD>
    <TD>&nbsp;</TD>
    <TD>Director</TD>
    <TD>&nbsp;</TD>
    <TD>2011</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-indent: -2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The principal occupations and employment of the nominees for
director are set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Duane W. Albro</I></B>
was the CEO of Alteva (NYSE &ldquo;ALTV&rdquo;) from May 2007 until March 2013. From 2005 to 2006, he was President and CEO of
Refinish LP, a privately held company in the cellular phone refurbishing business. From 2004 to 2005 he was a business consultant
with the Gerson Lehrman Group in NY, NY, providing strategic and tactical analysis and advice to investors and businesses. He has
extensive experience in the telecommunications and cable TV industry having worked in executive positions at Cablevision, Net 2000
Communications, Bell Atlantic and Nynex between 1966 and 2003. Mr. Albro has also been active in supporting the positive impact
of telecommunications used in education, having served on a White House Advisory Council on Technology in Education and provided
testimony to Congress on the benefits of technology used in education. Mr. Albro has demonstrated his commitment to workforce issues
as the founder, Chairman and President of the Long Island Works Coalition, a non-profit organization dedicated to enhancing the
available workforce for technology industries. Mr. Albro holds an MBA from New York Institute of Technology. Mr. Albro has served
as our director since April 17, 2009. Mr. Albro&rsquo;s qualifications to serve on our Board include his extensive executive business
experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Thomas J. McAteer</I></B><I>
</I>currently serves as Executive Vice President of Management Development and Strategic Initiatives of Suffolk Transportation.
He served as the Senior Vice President and Regional Market Head for Aetna&rsquo;s Medicaid Division from March 2007 until March
2013. Prior to joining Aetna Medicaid, Mr. McAteer served as the President and CEO of Vytra Health Plans. In a thirteen year career
at Vytra, Mr. McAteer played an executive leadership role in growing Vytra from annual revenues of $70 million in 1993 to over
$375 million in 2005. In 2001, Mr. McAteer facilitated the sale of Vytra to HIP Health Plans and, thereafter assumed the additional
responsibilities of Executive Vice President for Brand Leadership, as well as joining the Executive Committee of the enterprise.
Before joining Vytra, Mr. McAteer served as the Chief Deputy County Executive in Suffolk County, New York and prior to that as
the Director of Human Resources for the Metropolitan Transportation Authority. Mr. McAteer&rsquo;s qualifications to serve on our
Board include his business experience and multiple prior executive positions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. McAteer replaced as director Raymond
J. Smith, who retired from his post of Chairman of the Board of Directors on February 25, 2011, in the Incumbent Class III Directors.
Pursuant to the Company&rsquo;s By-Laws, Mr. McAteer shall hold office until the expiration of the term of the director such person
is elected to replace.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YOUR BOARD UNANIMOUSLY RECOMMENDS A VOTE
&ldquo;FOR&rdquo;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EACH OF THE NOMINEES FOR DIRECTOR</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 1pt solid">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">INCUMBENT DIRECTORS
- CLASS II</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Terms Expiring in June 2015</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; border-bottom: Black 1pt solid"><B>Name</B></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid; text-align: center"><B>Age</B></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 17%; border-bottom: Black 1pt solid"><B>Position</B></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 31%; border-bottom: Black 1pt solid; text-align: center"><B>Director Since</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">Stephen M. Bachelder</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">62</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">COO, Director</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">2004</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">Douglas B. Benedict</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">48</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">2012</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">James M. Jenkins</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">49</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">2012</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Stephen M. Bachelder</I></B>&nbsp;has
served as a director since November 2004, and served as&nbsp;Chairman of the Board of Directors from February 2011 until&nbsp;November
2012, when he was named our Chief Operating Officer-his current position. From March 2011 until November 2012 he served as our
National Sales Manager.&nbsp;His current term as a director will expire at our Annual Meeting of Stockholders in June 2015. Mr.
Bachelder was an executive and President of Swiftview, Inc., a Portland, Oregon based software company, from 1999-2007. Swiftview,
Inc. was sold to a private equity firm in October 2006. From 1991 to 1999 Mr. Bachelder ran a consulting firm advising technology
companies in the Pacific Northwest. &nbsp;Mr. Bachelder was the president and owner of an apparel company, Bachelder Imports, from
1982 to 1991 and worked in executive positions for Giant Foods, Inc. and Pepsico, Inc. between 1976 and 1982. &nbsp;Mr. Bachelder
is a 1976 Graduate of the Harvard Business School. Mr. Bachelder&rsquo;s qualifications to serve on our Board include his business
education and multiple prior executive positions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Douglas B. Benedict </I></B>is a Managing Director of
OEM Capital, an investment banking firm specializing in technology and communications and focusing primarily on small and middle-market
public and private companies. Mr. Benedict joined OEM Capital in May 2011. From 2008 to 2011 he was a Managing Director at MTN
Capital Partners, a private equity firm focused on small and middle-market opportunities. Prior to that, from 2001 to 2008, Mr.
Benedict served as Senior Vice President of Business and Strategic Development for Cendant Corporation and Lockton Companies. Prior
to 2001, he spent fifteen years as an investment banker in New York and London, primarily with Citigroup, Bank of America and Legg
Mason, specifically focusing on telecommunications, technology and financial institution companies. Mr. Benedict also serves as
Managing Principal of Regent Advisors LLC, a private strategic and business consulting firm. Since 2007, Mr. Benedict has served
on the Board of Directors of Alteva, Inc. Mr. Benedict holds an undergraduate degree in Economics from Harvard University and an
MBA from Amos Tuck School of Business at Dartmouth College. Mr. Benedict&rsquo;s qualifications to serve on our Board include his
business education and investment banking experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>James M. Jenkins
</I></B>is a<B><I> </I></B>partner at Harter Secrest &amp; Emery LLP, a regional law firm located in Western New York. Mr. Jenkins&rsquo;s
practice is in focused the areas of corporate governance and general corporate law matters, including initial and secondary public
offerings, private placements, mergers and acquisitions, and securities law compliance. Mr. Jenkins joined the firm in 1989 as
an associate and was elected a partner effective January 1, 1997. He has served as the Chair of the firm's Securities Practice
Group since 2001 and served as a member of the firm&rsquo;s Management Committee from January 2007 to January 2013. Mr. Jenkins
holds a B.A from Virginia Military Institute and a J.D. from West Virginia University College of Law. Mr. Jenkins&rsquo;s qualifications
to serve on our Board include his corporate governance experience as well his current business-related experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">INCUMBENT DIRECTORS - CLASS I</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Terms Expiring in June 2014</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; border-bottom: Black 1pt solid; text-align: center"><B>Name</B></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 6%; border-bottom: Black 1pt solid; text-align: center"><B>Age</B></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 28%; border-bottom: Black 1pt solid; text-align: center"><B>Position</B></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 30%; border-bottom: Black 1pt solid; text-align: center"><B>&nbsp;Director Since</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">Christopher J. Ryan</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">61</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Chief Executive Officer, President,</FONT> <FONT STYLE="font-size: 10pt">Secretary and Director</FONT></TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">1986</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>A. John Kreft</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">62</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2004</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>Christopher
J. Ryan</I></B> has served as Lakeland&rsquo;s Chief Executive Officer and President since November 2003, Secretary since April
1991, and a director since May 1986. Mr. Ryan was our Executive Vice President - Finance from May 1986 until becoming our President
in November 2003. Mr. Ryan also worked as a Corporate Finance Partner at Furman Selz Mager Dietz &amp; Birney, Senior Vice President-Corporate
Finance at Laidlaw Adams &amp; Peck, Inc., Managing-Corporate Finance Director of Brean Murray Foster Securities, Inc. and Senior
Vice President-Corporate Finance of Rodman &amp; Renshaw, respectively, between 1983-1991. Mr. Ryan has served as a Director of
Lessing, Inc., a privately held restaurant chain based in New York, from 1995-2008. Mr. Ryan received his BA from Stanford University,
his MBA from Columbia Business School and his J.D. from Vanderbilt Law School. Mr. Ryan&rsquo;s qualifications to serve on our
board include his business and legal education as well as his lengthy experience as a director at our Company and at other companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>A. John Kreft</I></B>
has been President of Kreft Interests, a Houston based private investment firm, since 2001. Between 1998 and 2001, he was CEO of
Baker Kreft Securities, LLC, a NASD broker-dealer. From 1996 to 1998, he was a co-founder and manager of TriCap Partners, a Houston
based venture capital firm. From 1994 to 1996 he was employed as a director at Alex Brown and Sons. He also held senior positions
at CS First Boston, including employment as a managing director from 1989 to 1994. Mr. Kreft received his MBA from the Wharton
School of Business in 1975. Mr. Kreft&rsquo;s qualifications to serve on our board include his extensive capital markets experience
with debt and equity financings and bank facilities. In addition, his familiarity with acquisition due diligence and integration
issues assists him in his directorship of Lakeland.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DIRECTOR COMPENSATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Members of the Board
of Directors are reimbursed for all travel related expenses to and from meetings of the Board and its Committees. Non-employee
directors each receive $6,250 quarterly as compensation for serving as a member of the Board and on its committees. Our committee
chairpersons each receive an additional $500 quarterly. In addition, non-employee directors receive an additional $1,500 for each
Board and committee meeting attended in person and $500 for such meetings attended telephonically. As of May 20, 2013, the Board
of Directors decided to change the non-employee Director compensation to a flat fee of $16,000 for the year and a flat fee of
$500 for meetings, regardless if in person or by telephonically. There are no charitable awards or director legacy programs and
no deferred compensation programs for our directors. In their deliberations relating to directors&rsquo; compensation, the Compensation
Committee reviewed a study conducted by the National Association of Corporate Directors and the Center for Board Leadership, entitled
&ldquo;2010-2011 Director Compensation Report&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The following table sets
forth compensation paid by the Company to non-employee directors during fiscal year ended January 31, 2013 (sometimes referred
to in this proxy statement as &ldquo;FY13&rdquo;). Disclosures relating to the compensation of Christopher J. Ryan and Stephen
M. Bachelder can be found in the &ldquo;Executive Officers &ndash; Executive Compensation&rdquo; section below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">DIRECTOR COMPENSATION - FISCAL 2013</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Name</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Fees<BR>
    Earned<BR> or&nbsp;Paid<BR> in&nbsp;Cash<BR> ($)</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>Stock<BR>
Awards<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT></B><BR>
    <B>($)</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>Option</B><BR>
    <B>Awards</B><BR> <B><SUP>(1)<FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></SUP></B><BR> <B>($)</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Non-Equity<BR>
    Incentive<BR> Plan<BR> Compen-<BR>
sation<BR> ($)</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Nonqualified<BR>
    Deferred<BR> Compen-<BR>
sation<BR> Earnings<BR> ($)</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>All&nbsp;Other</B><BR>
    <B>Compensation<SUP>(4)</SUP></B><BR> <B>($)</B></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Total<BR>
    ($)</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">(a)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">(b)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">(c)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">(d)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">(e)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">(f)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">(g)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-size: 8pt">(h)</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 44%; text-align: left"><FONT STYLE="font-size: 8pt">Duane W. Albro</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 8pt">41,500</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 8pt">67,620</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt"><SUP>(5)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 5%; text-align: right"><FONT STYLE="font-size: 8pt">109,120</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Douglas B. Benedict</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">27,785</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">57,960</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">12,315</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">412</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">98,472</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">James M. Jenkins</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">23,785</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">57,960</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">12,315</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">946</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">95,006</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">A. John Kreft</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">39,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">67,620</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">5,989</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">113,109</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">Thomas McAteer <SUP>(3)</SUP></FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">118,950</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">118,950</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><SUP>(1)</SUP></TD><TD STYLE="text-align: justify">Represents the dollar amount representing aggregate grant date fair value during fiscal 2013, at
maximum level for restricted shares and based on Black-Scholes model for director options. The Board of Directors has set the estimated
performance at zero based on the performance since June 2012 when these shares were granted, which would result in no stock awards
unless performance improves.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><SUP>(2)</SUP></TD><TD STYLE="text-align: justify">At January 31, 2013 our non-employee directors owned the following unexercised options: Mr. Albro
5,000, Mr. Benedict 5,000, Mr. Jenkins 5,000, Mr. Kreft 2,000 and Mr. McAteer 5,000.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><SUP>(3)</SUP></TD><TD STYLE="text-align: justify">Mr. McAteer was paid his fees in Restricted Stock totaling $51,330 and was granted 10,500 performance
shares valued at $67,620 at January 31, 2013 at maximum</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><SUP>(4)</SUP></TD><TD STYLE="text-align: justify">Represents travel expense reimbursements.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><SUP>(5)</SUP></TD><TD STYLE="text-align: justify">Represents 10,500 restricted share grants at maximum and the $57,960 represents 9,000 restricted
share grants at maximum. All are unvested and subject to three-year performance vesting.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify; text-indent: -13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Messrs. Albro, Benedict,
Jenkins, Kreft, and McAteer each participated in our Non-Employee Directors' Option Plan (the &ldquo;Directors&rsquo; Plan&rdquo;)
and 2012 Stock Incentive Plan (the &ldquo;2012 Equity Plan&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Up until December 15,
2012 we granted stock options to our non-employee directors under this now expired Directors&rsquo; Plan, which provided for an
automatic one-time grant of options to purchase 5,000 shares of common stock to each non-employee director newly elected or appointed
to the Board of Directors. Under the Directors&rsquo; Plan, 60,000 shares of common stock were authorized for issuance. Options
were granted at not less than fair market value, become exercisable commencing six months from the date of grant and expire six
years from the date of grant. In addition, all non-employee directors re-elected to the Company&rsquo;s Board of Directors at any
annual meeting of the stockholders were automatically granted additional options to purchase 1,000 shares of common stock on that
date which in accordance with our By-Laws is the third Wednesday of June each year, unless a different date is designated by the
Board. Grants made pursuant to the Directors&rsquo; Plan during fiscal 2013 are as follows: Mr. Jenkins and Mr. Benedict received
5,000 options shares each. This Plan expired in December 2012 and was not renewed.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RATIFICATION OF SELECTION OF WARREN
AVERETT LLC (Warren Averett)</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">AS OUR INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(<FONT STYLE="font-family: Times New Roman, Times, Serif; font-variant: small-caps">Item
2 on the Proxy Card</FONT>)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Audit Committee
of our Board has selected Warren Averett as our independent registered public accounting firm to audit our consolidated financial
statements for the fiscal year ending January&nbsp;31, 2014, and has directed that management submit the selection of Warren Averett
as our independent registered public accounting firm for ratification by the stockholders at the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Warren Averett has audited
our financial statements since April 28, 2009. A representative of Warren Averett is expected to be present or available by phone
at the Annual Meeting and will be available to respond to appropriate questions from our stockholders and will be given an opportunity
to make a statement if he or she desires to do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The affirmative vote
of the holders of a majority of the shares present or represented by proxy and entitled to vote will be required to ratify the
selection of Warren Averett as our independent registered public accounting firm once a quorum is present. Abstentions will be
counted toward the tabulation of votes cast on this proposal and will have the same effect as a vote against this proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Stockholder ratification
of the selection of Warren Averett as our independent registered public accounting firm is not required by our Bylaws or otherwise.
However, the Audit Committee is submitting the selection of Warren Averett to the stockholders for ratification as a matter of
good corporate governance. If the stockholders fail to ratify the selection, the Audit Committee will reconsider whether or not
to retain that firm. Even if the selection is ratified, the Audit Committee may in its discretion direct the appointment of different
independent registered public accountants at any time during the year if they determine that such a change would be in the best
interests of the Company and its stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>YOUR BOARD UNANIMOUSLY RECOMMENDS A VOTE
&ldquo;FOR&rdquo; THIS PROPOSAL</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">AUDIT COMMITTEE REPORT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The following is the
report of the Audit Committee of the Board of Directors of Lakeland Industries, Inc., describing the Audit Committee&rsquo;s responsibilities
and practices, specifically with respect to matters involving Lakeland&rsquo;s accounting, auditing, financial reporting and internal
control functions. Among other things, the Audit Committee reviews and discusses with management and with Lakeland&rsquo;s independent
registered public accounting firm the results of Lakeland&rsquo;s year-end audit, including the audit report and audited financial
statements. The members of the Audit Committee of the Board are presenting this report for the fiscal year ended January&nbsp;31,
2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Audit Committee acts
pursuant to a written charter that was originally adopted by the Board in 2001. The Nominating and Governance Committee and the
Board consider membership of the Audit Committee annually. The Audit Committee reviews and assesses the adequacy of its charter
annually. The Audit Committee held five meetings during the fiscal year ended January 31, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">All members of the Audit
Committee are independent directors, qualified to serve on the Audit Committee pursuant to the applicable Nasdaq Marketplace Rules.
In accordance with its charter, the Audit Committee oversees accounting, financial reporting, internal control over financial reporting,
financial practices and audit activities of Lakeland and its subsidiaries. The Audit Committee provides advice, counsel and direction
to management and the independent registered public accounting firm on the basis of the information it receives, discussions with
management and the independent registered public accounting firm, and the experience of the Audit Committee&rsquo;s members in
business, financial and accounting matters. The Audit Committee relies, without independent verification, on the information provided
by Lakeland and on the representations made by management that the financial statements have been prepared with integrity and objectivity,
on the representations of management, and the opinion of the independent registered public accounting firm that such financial
statements have been prepared in conformity with accounting principles generally accepted in the United States, or GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In connection with its
review of Lakeland&rsquo;s audited financial statements for the fiscal year ended January&nbsp;31, 2013, the Audit Committee reviewed
and discussed the audited financial statements with management and discussed with Warren Averett, Lakeland&rsquo;s independent
registered public accounting firm, the matters required to be discussed by SAS 114 (Codification of Statements on Auditing Standards,
AU &sect;380). The Audit Committee received the written disclosures and the letter from Warren Averett required by Independence
Standards Board Standard No.&nbsp;1 (Independence Discussions with Audit Committees) and discussed with Warren Averett its independence
from Lakeland. The Audit Committee has also considered whether the provision of certain permitted non-audit services by Warren
Averett is compatible with their independence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Based on the reviews
and discussions referred to above, the Audit Committee recommended to the Board that the audited financial statements be included
in Lakeland&rsquo;s Annual Report on Form&nbsp;10-K for its fiscal year ended January&nbsp;31, 2013 for filing with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">During fiscal 2013, the
Audit Committee met with management and Lakeland&rsquo;s independent registered public accountants and received the results of
the audit examination, evaluations of Lakeland&rsquo;s internal controls and the overall quality of Lakeland&rsquo;s financial
organization and financial reporting. The Audit Committee also meets at least once each quarter with Lakeland&rsquo;s independent
registered public accountants and management to review Lakeland&rsquo;s interim financial results before the publication of Lakeland&rsquo;s
quarterly earnings press releases. The Audit Committee believes that a candid, substantive and focused dialogue with the independent
registered public accountants is fundamental to the committee&rsquo;s responsibilities. To support this belief, the Audit Committee
meets separately with the independent registered public accountants without the members of management present on at least an annual
basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Audit Committee has
established procedures for the receipt, retention and treatment of complaints received by Lakeland regarding accounting, internal
accounting controls, or auditing matters, including the confidential, anonymous submission by Lakeland employees, received through
established procedures, of concerns regarding questionable accounting or auditing matters. We have established a confidential email
and hotline for employees to report violations of Lakeland&rsquo;s Code of Ethics or other company policies and to report any ethical
concerns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The information contained
in this report shall not be deemed &ldquo;soliciting material&rdquo; or to be &ldquo;filed&rdquo; with the SEC, nor shall such
information be incorporated by reference into any future filing under the Securities Act of 1933, as amended (the &ldquo;Securities
Act&rdquo;), or the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), except to the extent that Lakeland
specifically incorporates it by reference into such filing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 35%">&nbsp;</TD>
    <TD STYLE="width: 65%"><B><I>The Audit Committee:</I></B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>A. John Kreft (Chairman), Douglas Benedict and James Jenkins</TD></TR>
</TABLE>
<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">INDEPENDENT AUDITOR FEE INFORMATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Audit Committee appointed
Warren Averett as the independent registered public accounting firm to audit the fiscal 2014 financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Fees billed for services
in fiscal 2013 and fiscal 2012 are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fiscal 2013</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fiscal 2012</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; text-align: left">Audit Fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">157,545</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">209,229</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Audit-Related Fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left">Tax Fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,447</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,710</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Brazil Arbitration</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,906</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">All Other Fees</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">18,453</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">277,351</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">284,939</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Audit Fees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Professional services rendered for audit
of our annual financial statements in compliance with Section 404 of the Sarbanes-Oxley Act of 2002 and review of our financial
statements included in our Forms 10-Q and other filings with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Audit-Related Fees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There were no audit-related fees for assurance
and related services that are reasonably related to the performance of the audit or review of the financial statement not reported
under &ldquo;Audit Fees&rdquo; for fiscal year 2013 and fiscal year 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Tax Fees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Tax preparation including audits, quarterly
estimates and resolutions of various notices from taxing authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Brazil Arbitration</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Services relating to the Brazil arbitration
settlement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>All Other Fees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Travel related expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Audit Committee has determined that
the rendering of services by Warren Averett are compatible with maintaining their independence as our independent registered public
accounting firm.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Financial Information Systems Design
and Implementation Fees</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">During the year ended
January 31, 2013, Warren Averett rendered no professional services to us in connection with the design and implementation of financial
information systems.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>Audit Committee Pre-Approval
Policy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">In accordance with applicable
laws and regulations, the Audit Committee reviews and pre-approves any non-audit services to be performed by our independent registered
public accounting firm to ensure that the work does not compromise their independence in performing their audit services. The
Audit Committee generally also reviews and pre-approves all audits, audit related, tax and all other fees, as applicable. In some
cases, pre-approval is provided by the full committee for up to a year, and relates to a particular category or group of services
and is subject to a specific budget and SEC rules. In other cases, the chairman of the Audit Committee has the delegated authority
from the committee to pre-approve additional services, and such pre-approvals are then communicated to the full Audit Committee
at its next meeting.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">CORPORATE GOVERNANCE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6.6pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Director Independence</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Our Board is currently
composed of seven directors. As required under the Marketplace Rules of the Nasdaq Stock Market LLC (&ldquo;Nasdaq&rdquo;), a majority
of the members of a Nasdaq listed company&rsquo;s board of directors must qualify as &ldquo;independent,&rdquo; as affirmatively
determined by our Board. Our Board consults with our counsel, as necessary, to ensure that the Board&rsquo;s determinations are
consistent with all relevant securities and other laws and regulations regarding the definition of &ldquo;independent,&rdquo; including
those set forth in pertinent Nasdaq Marketplace Rules, as in effect from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Consistent with these
considerations, after review of all relevant transactions or relationships with each director, or any of his or her family members,
our executive management has affirmatively determined that, other than Christopher J. Ryan, our Chief Executive Officer, President
and Secretary, and Stephen M. Bachelder, our Chief Operating Officer, each member of our Board is an independent director for purposes
of the Nasdaq Marketplace Rules. In making this determination, the Board found that none of these directors or nominees for director
has a direct or indirect material or other disqualifying relationship with us, which, in the opinion of the Board, would interfere
with the exercise of independent judgment in carrying out the responsibilities of a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">The Board holds executive sessions of
its independent directors when it deems necessary but at least once per year.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Board and Committee Meetings and Attendance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The Board has three standing
committees: an Audit Committee, a Compensation Committee, and a Nominating and Governance Committee. Each of these committees operates
under a written charter adopted by the Board. Copies of these charters are available on our website at <U>www.lakeland.com</U>
under the headings Financial Information &ndash; Corporate Governance and Board Matters. Board committee charters are also available
in print to stockholders upon request, addressed to the Corporate Secretary, at 701 Koehler Avenue, Suite 7, Ronkonkoma, New York
11779.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the fiscal year ended January 31, 2013, there were:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>fourteen (14) meetings of the Board of Directors;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>five (5) meetings of the Audit Committee;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>two (2) meetings of the Compensation Committee; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>two (2) meetings of the Nominating and Governance Committee.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each director attended at least 75% of the aggregate of the
meetings of the Board and of the respective committees on which he served held during the period for which he was a director or
committee member, respectively, during fiscal year ended January 31, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-style: normal"><B>Audit Committee</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">During fiscal 2013, our
Audit Committee consisted of A. John Kreft (Chairman), Douglas Benedict and James Jenkins (Eric O. Hallman and John J. Collins,
retired from the Board on June 20, 2012). The Board annually reviews the definition of independence for Audit Committee members
and has determined that all members of our Audit Committee are independent (as independence is currently defined under applicable
Nasdaq Marketplace Rules). Our Board has determined that Mr.&nbsp;Kreft is an &ldquo;audit committee financial expert,&rdquo; as
such term is defined in applicable rules and regulations based on, among other things, his MBA in finance from the Wharton School
of Business, four and a half years&rsquo; experience with two &ldquo;Big 4&rdquo; accounting firms, eighteen years of investment
banking, underwriting and advisory services experience with several brokerage firms such as Credit Suisse and Alex Brown and three
years as Chief Executive Officer of a NASD broker dealer. Mr. Kreft has held five levels of security licenses at various times
including General Securities Principal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">The formal report of
our Audit Committee is included in this proxy statement. The Audit Committee&rsquo;s responsibilities include, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the oversight of the quality of our consolidated financial statements and our compliance with legal
and regulatory requirements;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the selection, evaluation and oversight of our independent registered public accountants, including
conducting a review of their independence, determining their fees, overseeing their audit work, and reviewing and pre-approving
any non-audit services that may be performed by them;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the oversight of annual audit and quarterly reviews, including review of our consolidated financial
statements, our critical accounting policies and any material related-party transactions and the application of accounting principles;&nbsp;and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the oversight of financial reporting process and internal controls, including a review of the adequacy
of our accounting and internal controls and procedures.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Compensation Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">During fiscal 2013, our
Compensation Committee consisted of Thomas McAteer (Chairman), Duane Albro and A. John Kreft (John Collins retired from the Board
on June 20, 2012), each of whom is an independent director (as independence is currently defined under applicable Nasdaq Marketplace
Rules). Our Compensation Committee&rsquo;s role includes setting and administering the policies governing the compensation of executive
officers, including cash compensation and equity incentive programs, and reviewing and establishing the compensation of the Chief
Executive Officer and other executive officers. Our Compensation Committee&rsquo;s principal responsibilities, which have been
authorized by the Board, are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">approving the compensation for the Chief Executive Officer and other executive officers (after
considering the recommendation of our Chief Executive Officer with respect to the form and amount of compensation for executive
officers other than the Chief Executive Officer);</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">approving the amount of and vesting of equity awards; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">advising the Board on our compensation and benefits matters, including making recommendations and
decisions where authority has been granted regarding our equity incentive plan, bonuses and incentive compensation plans.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">Our Compensation Committee
does not delegate any of its responsibilities to other committees or persons. Participation by executive officers in the recommendation
or determination of compensation for executive officers or directors is limited to (i)&nbsp;recommendations by our Chief Executive
Officer to our Compensation Committee regarding the compensation of executive officers other than with respect to himself and
(ii)&nbsp;our Chief Executive Officer&rsquo;s participation in Board determinations of compensation for the non-employee directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6.6pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Nominating and Governance Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">During fiscal 2013, our
Nominating and Governance Committee consisted of Duane Albro (Chairman), Douglas Benedict and James Jenkins, each of whom is an
independent director (as independence is currently defined in the applicable Nasdaq Marketplace Rules). The purpose of the Nominating
and Governance Committee is to identify, screen and recommend to the Board qualified candidates to serve as directors, to develop
and recommend to the Board a set of corporate governance principles applicable to Lakeland, and to oversee corporate governance
and other organizational matters. The Nominating and Governance Committee&rsquo;s responsibilities include, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">reviewing qualified candidates to serve as directors;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">aiding in attracting qualified candidates to serve on the Board;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">considering, reviewing and investigating (including with respect to potential conflicts of interest
of prospective candidates) and either accepting or rejecting candidates suggested by our stockholders, directors, officers, employees
and others;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">recommending to the full Board nominees for new or vacant positions on the Board and providing
profiles of the qualifications of the candidates;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">monitoring our overall corporate governance and corporate compliance program;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">reviewing and adopting policies governing the qualification and composition of the Board;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">recommending remuneration for non-employee Board members;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">reviewing and making recommendations to the Board regarding Board structure, including establishing
criteria for committee membership, recommending processes for new Board member orientation, and reviewing and monitoring the performance
of incumbent directors;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">recommending to the Board action with respect to implementing resignation, retention and retirement
policies of the Board;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">reviewing the role and effectiveness of the Board, the respective Board committees and the directors
in our corporate governance process;&nbsp;and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.7pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">reviewing and making recommendations to the Board regarding the nature and duties of Board committees,
including evaluating the committee charters, recommending appointments to committees, and recommending the appropriate chairperson
for the Board.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6.6pt">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">Director
Nomination Procedures</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-size: 10pt; color: Black">&nbsp;</FONT><FONT STYLE="color: Black">The
Nominating and Governance Committee will consider director candidates recommended by stockholders. In considering candidates submitted
by stockholders, the Nominating and Governance Committee will take into consideration the needs of the Board and the qualifications
of the candidate. The Nominating and Governance Committee may also take into consideration the number of shares held by the recommending
stockholder and the length of time that such shares have been held. To have a candidate considered by the Nominating and Governance
Committee, a stockholder must submit the recommendation in writing and must include the following information:</FONT></P>

<P STYLE="font: 10pt Symbol; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -13.5pt"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 40.5pt"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">the
                                                                                                               name of the stockholder
                                                                                                               and evidence of
                                                                                                               the person&rsquo;s
                                                                                                               ownership of our
                                                                                                               stock, including
                                                                                                               the number of shares
                                                                                                               owned and the length
                                                                                                               of time of ownership;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 40.5pt"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD><FONT STYLE="color: Black">the
                                                                                                               name of the candidate,
                                                                                                               the candidate&rsquo;s
                                                                                                               written detailed
                                                                                                               resume and a listing
                                                                                                               of his or her qualifications
                                                                                                               to be a director
                                                                                                               of the company;&nbsp;and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 40.5pt"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Symbol; color: Black">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">the
                                                                                                               written consent
                                                                                                               of the proposed
                                                                                                               candidate to be
                                                                                                               named as a nominee
                                                                                                               and to serve as
                                                                                                               a director if elected.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6.6pt; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
stockholder recommendation and information described above must be sent to the Corporate Secretary at 701 Koehler Avenue, Suite
7, Ronkonkoma, New York 11779 and must be delivered to, or mailed and received by the Corporate Secretary not earlier than the
one hundred fiftieth (150<SUP>th</SUP>) calendar day, and not later than the close of business on the one hundred twentieth (120<SUP>th</SUP>)
calendar day, prior to the first anniversary of the immediately preceding year&rsquo;s Annual Meeting of Stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
Nominating and Governance Committee believes that the minimum qualifications for serving as a director are that a nominee demonstrate,
by significant accomplishment in his or her field, an ability to make a meaningful contribution to the Board&rsquo;s oversight
of the business and affairs of Lakeland and have an impeccable record and reputation for honesty and ethical conduct in both his
or her professional and personal activities. In addition, the Nominating and Governance Committee examines a candidate&rsquo;s
specific experiences and skills, relevant industry background and knowledge, time availability in light of other commitments,
potential conflicts of interest, interpersonal skills and compatibility with the Board, and independence from management and the
Company. The Nominating and Governance Committee also seeks to have the Board represent a diversity of backgrounds and experience.
The Nominating and Governance Committee does not assign specific weights to particular criteria and no particular criterion is
necessarily applicable to all prospective nominees.&nbsp;The Nominating and Governance Committee believes that the backgrounds
and qualifications of the directors, considered as a group, should provide a composite mix of experience, knowledge and abilities
that will allow the Board to fulfill its responsibilities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
Nominating and Governance Committee identifies potential nominees through independent research and through consultation with current
directors and executive officers and other professional colleagues. The Nominating and Governance Committee looks for persons
meeting the criteria above, and takes note of individuals who have had a change in circumstances that might make them available
to serve on the Board,&nbsp;for example, retirement as a Chief Executive Officer or Chief Financial Officer of a company. The
Nominating and Governance Committee also, from time to time, may engage firms that specialize in identifying director candidates.
As described above, the Nominating and Governance Committee will also consider candidates recommended by stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">Once
a person has been identified by the Nominating and Governance Committee as a potential candidate, the committee may collect and
review publicly available information regarding the person to assess whether the person should be considered further. If the Nominating
and Governance Committee determines that the candidate warrants further consideration by the committee, the Chairman or another
member of the committee will contact the person. Generally, if the person expresses a willingness to be considered and to serve
on the Board, the Nominating and Governance Committee requests a resume and other information from the candidate, reviews the
person&rsquo;s accomplishments and qualifications, including in light of any other candidates that the committee might be considering.
The Nominating and Governance Committee may also conduct one or more interviews with the candidate, either in person, telephonically
or both. In certain instances, Nominating and Governance Committee members may conduct a background check, may contact one or
more references provided by the candidate or may contact other members of the business community or other persons that may have
greater first-hand knowledge of the candidate&rsquo;s accomplishments. The Nominating and Governance Committee&rsquo;s evaluation
process does not vary based on whether or not a candidate is recommended by a stockholder, although, as stated above, the committee
may take into consideration the number of shares held by the recommending stockholder and the length of time that such shares
have been held.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">Interested
Party Communications</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
Board has established a process to receive communications from stockholders and other interested parties. Stockholders and other
interested parties may contact any member (or all members) of the Board by mail. To communicate with the Board, any individual
director or any group or committee of directors, correspondence should be addressed to the Board or any such individual director
or group or committee of directors by either name or title. All such correspondence should be sent c/o Corporate Secretary, 701
Koehler Avenue, Suite 7, Ronkonkoma, New York 11779.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">All
communications received as set forth in the preceding paragraph will be opened by the office of our Corporate Secretary for the
sole purpose of determining whether the contents represent a message to our directors. Any contents that are not in the nature
of advertising, promotions of a product or service, or patently offensive material will be forwarded promptly to the addressee.
In the case of communications to the Board or any group or committee of directors, the Corporate Secretary&rsquo;s office will
make sufficient copies of the contents to send to each director who is a member of the group or committee to which the envelope
is addressed.<B>&#9;</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">Director
Attendance at Annual Stockholder Meetings</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">We
expect that each of our directors attend our Annual Stockholder Meetings, as provided in our Corporate Governance Guidelines.
All of our directors were in attendance at the June 20, 2012 Annual Meeting of Stockholders.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">Corporate
Governance Guidelines and Practices</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt; color: Black">&nbsp;</FONT><FONT STYLE="color: Black">We
are committed to good corporate governance practices and as such we have adopted formal Corporate Governance Guidelines. A copy
of the Corporate Governance Guidelines may be found on our website at <U>www.lakeland.com</U> under the headings Financial Information
&ndash; Corporate Governance and Board Matters. Below are some highlights of our corporate governance guidelines and practices:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>Board
                                                                                                                               Independence</B><I>.</I>&nbsp;&nbsp;We
                                                                                                                               believe
                                                                                                                               that
                                                                                                                               the
                                                                                                                               Board
                                                                                                                               should
                                                                                                                               be
                                                                                                                               comprised
                                                                                                                               of
                                                                                                                               a
                                                                                                                               majority
                                                                                                                               of
                                                                                                                               independent
                                                                                                                               directors
                                                                                                                               and
                                                                                                                               that
                                                                                                                               no
                                                                                                                               more
                                                                                                                               than
                                                                                                                               two
                                                                                                                               management
                                                                                                                               executives
                                                                                                                               may
                                                                                                                               serve
                                                                                                                               on
                                                                                                                               the
                                                                                                                               Board
                                                                                                                               at
                                                                                                                               the
                                                                                                                               same
                                                                                                                               time.
                                                                                                                               Currently,
                                                                                                                               the
                                                                                                                               Board
                                                                                                                               has
                                                                                                                               seven
                                                                                                                               directors,
                                                                                                                               five
                                                                                                                               of
                                                                                                                               whom
                                                                                                                               are
                                                                                                                               independent
                                                                                                                               directors
                                                                                                                               under
                                                                                                                               the
                                                                                                                               applicable
                                                                                                                               Nasdaq
                                                                                                                               Marketplace
                                                                                                                               Rules
                                                                                                                               and
                                                                                                                               two
                                                                                                                               who
                                                                                                                               are
                                                                                                                               active
                                                                                                                               members
                                                                                                                               of
                                                                                                                               management.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>Board
                                                                                                                               Committees</B><I>.</I>&nbsp;&nbsp;All
                                                                                                                               of
                                                                                                                               our
                                                                                                                               Board
                                                                                                                               committees
                                                                                                                               consist
                                                                                                                               entirely
                                                                                                                               of
                                                                                                                               independent
                                                                                                                               directors
                                                                                                                               as
                                                                                                                               defined
                                                                                                                               under
                                                                                                                               the
                                                                                                                               applicable
                                                                                                                               Nasdaq
                                                                                                                               Marketplace
                                                                                                                               Rules.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>Chairman,
                                                                                                                                             CEO
                                                                                                                                             and
                                                                                                                                             Position
                                                                                                                                             Separation;
                                                                                                                                             Leadership
                                                                                                                                             Structure</B><I>.</I>&nbsp;&nbsp;The
                                                                                                                                             Board
                                                                                                                                             separated
                                                                                                                                             the
                                                                                                                                             positions
                                                                                                                                             of
                                                                                                                                             Chairman
                                                                                                                                             of
                                                                                                                                             the
                                                                                                                                             Board
                                                                                                                                             and
                                                                                                                                             Chief
                                                                                                                                             Executive
                                                                                                                                             Officer
                                                                                                                                             in
                                                                                                                                             2003,
                                                                                                                                             and
                                                                                                                                             elected
                                                                                                                                             Christopher
                                                                                                                                             J.
                                                                                                                                             Ryan
                                                                                                                                             as
                                                                                                                                             President
                                                                                                                                             and
                                                                                                                                             Chief
                                                                                                                                             Executive
                                                                                                                                             Officer.
                                                                                                                                             Raymond
                                                                                                                                             Smith
                                                                                                                                             retired
                                                                                                                                             as
                                                                                                                                             Chairman
                                                                                                                                             of
                                                                                                                                             the
                                                                                                                                             Board
                                                                                                                                             on
                                                                                                                                             February
                                                                                                                                             25,
                                                                                                                                             2011
                                                                                                                                             and
                                                                                                                                             was
                                                                                                                                             succeeded
                                                                                                                                             by
                                                                                                                                             Stephen
                                                                                                                                             M.
                                                                                                                                             Bachelder.
                                                                                                                                             In
                                                                                                                                             October
                                                                                                                                             27,
                                                                                                                                             2012
                                                                                                                                             Mr.
                                                                                                                                             Bachelder
                                                                                                                                             stepped
                                                                                                                                             down
                                                                                                                                             from
                                                                                                                                             Chairman
                                                                                                                                             of
                                                                                                                                             the
                                                                                                                                             Board
                                                                                                                                             to
                                                                                                                                             become
                                                                                                                                             the
                                                                                                                                             Company&rsquo;s
                                                                                                                                             Chief
                                                                                                                                             Operating
                                                                                                                                             Officer.
                                                                                                                                             Mr.
                                                                                                                                             Duane
                                                                                                                                             Albro
                                                                                                                                             was
                                                                                                                                             elected
                                                                                                                                             to
                                                                                                                                             fill
                                                                                                                                             the
                                                                                                                                             position
                                                                                                                                             of
                                                                                                                                             Chairman
                                                                                                                                             of
                                                                                                                                             the
                                                                                                                                             Board
                                                                                                                                             on
                                                                                                                                             October
                                                                                                                                             27,
                                                                                                                                             2012.
                                                                                                                                             Separating
                                                                                                                                             these
                                                                                                                                             positions
                                                                                                                                             allows
                                                                                                                                             for
                                                                                                                                             the
                                                                                                                                             Chief
                                                                                                                                             Executive
                                                                                                                                             Officer
                                                                                                                                             to
                                                                                                                                             focus
                                                                                                                                             on
                                                                                                                                             day-to-day
                                                                                                                                             business
                                                                                                                                             operations
                                                                                                                                             of
                                                                                                                                             the
                                                                                                                                             Company,
                                                                                                                                             while
                                                                                                                                             allowing
                                                                                                                                             the
                                                                                                                                             Chairman
                                                                                                                                             of
                                                                                                                                             the
                                                                                                                                             Board
                                                                                                                                             to
                                                                                                                                             lead
                                                                                                                                             the
                                                                                                                                             Board
                                                                                                                                             in
                                                                                                                                             its
                                                                                                                                             fundamental
                                                                                                                                             role
                                                                                                                                             of
                                                                                                                                             providing
                                                                                                                                             advice
                                                                                                                                             to
                                                                                                                                             management.
                                                                                                                                             The
                                                                                                                                             Board
                                                                                                                                             recognizes
                                                                                                                                             the
                                                                                                                                             time,
                                                                                                                                             effort,
                                                                                                                                             and
                                                                                                                                             energy
                                                                                                                                             that
                                                                                                                                             our
                                                                                                                                             Chief
                                                                                                                                             Executive
                                                                                                                                             Officer
                                                                                                                                             is
                                                                                                                                             required
                                                                                                                                             to
                                                                                                                                             devote
                                                                                                                                             to
                                                                                                                                             his
                                                                                                                                             position
                                                                                                                                             in
                                                                                                                                             the
                                                                                                                                             current
                                                                                                                                             business
                                                                                                                                             environment,
                                                                                                                                             as
                                                                                                                                             well
                                                                                                                                             as
                                                                                                                                             the
                                                                                                                                             commitment
                                                                                                                                             required
                                                                                                                                             to
                                                                                                                                             serve
                                                                                                                                             as
                                                                                                                                             Chairman,
                                                                                                                                             particularly
                                                                                                                                             as
                                                                                                                                             the
                                                                                                                                             Board&rsquo;s
                                                                                                                                             oversight
                                                                                                                                             responsibilities
                                                                                                                                             continue
                                                                                                                                             to
                                                                                                                                             grow.
                                                                                                                                             While
                                                                                                                                             the
                                                                                                                                             Company
                                                                                                                                             bylaws
                                                                                                                                             and
                                                                                                                                             corporate
                                                                                                                                             governance
                                                                                                                                             guidelines
                                                                                                                                             do
                                                                                                                                             not
                                                                                                                                             require
                                                                                                                                             that
                                                                                                                                             the
                                                                                                                                             Chairman
                                                                                                                                             and
                                                                                                                                             Chief
                                                                                                                                             Executive
                                                                                                                                             Officer
                                                                                                                                             positions
                                                                                                                                             be
                                                                                                                                             separate,
                                                                                                                                             the
                                                                                                                                             Board
                                                                                                                                             believes
                                                                                                                                             that
                                                                                                                                             having
                                                                                                                                             separate
                                                                                                                                             positions
                                                                                                                                             is
                                                                                                                                             the
                                                                                                                                             appropriate
                                                                                                                                             leadership
                                                                                                                                             structure
                                                                                                                                             for
                                                                                                                                             the
                                                                                                                                             Company
                                                                                                                                             at
                                                                                                                                             this
                                                                                                                                             time
                                                                                                                                             and
                                                                                                                                             demonstrates
                                                                                                                                             its
                                                                                                                                             commitment
                                                                                                                                             to
                                                                                                                                             good
                                                                                                                                             corporate
                                                                                                                                             governance.
                                                                                                                                             </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>Executive
                                                                                                                               Session
                                                                                                                               of
                                                                                                                               Independent
                                                                                                                               Directors</B><I>.</I>&nbsp;&nbsp;The
                                                                                                                               Board&rsquo;s
                                                                                                                               current
                                                                                                                               practice
                                                                                                                               is
                                                                                                                               to
                                                                                                                               hold
                                                                                                                               an
                                                                                                                               executive
                                                                                                                               session
                                                                                                                               of
                                                                                                                               its
                                                                                                                               independent
                                                                                                                               directors
                                                                                                                               at
                                                                                                                               least
                                                                                                                               once
                                                                                                                               a
                                                                                                                               year.
                                                                                                                               In
                                                                                                                               fiscal
                                                                                                                               2013,
                                                                                                                               the
                                                                                                                               independent
                                                                                                                               members
                                                                                                                               of
                                                                                                                               our
                                                                                                                               Board
                                                                                                                               met
                                                                                                                               in
                                                                                                                               executive
                                                                                                                               session
                                                                                                                               four
                                                                                                                               times.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; color: Black">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>Independent
                                                                                                                                                    Advisors</B><I>.</I>&nbsp;&nbsp;The
                                                                                                                                                    Board
                                                                                                                                                    and
                                                                                                                                                    each
                                                                                                                                                    committee
                                                                                                                                                    have
                                                                                                                                                    the
                                                                                                                                                    power
                                                                                                                                                    to
                                                                                                                                                    hire
                                                                                                                                                    independent
                                                                                                                                                    legal,
                                                                                                                                                    financial
                                                                                                                                                    or
                                                                                                                                                    other
                                                                                                                                                    advisors
                                                                                                                                                    at
                                                                                                                                                    any
                                                                                                                                                    time
                                                                                                                                                    as
                                                                                                                                                    they
                                                                                                                                                    deem
                                                                                                                                                    necessary
                                                                                                                                                    and
                                                                                                                                                    appropriate
                                                                                                                                                    to
                                                                                                                                                    fulfill
                                                                                                                                                    their
                                                                                                                                                    Board
                                                                                                                                                    and
                                                                                                                                                    committee
                                                                                                                                                    responsibilities.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>Directors
                                                                                                                               Are
                                                                                                                               Subject
                                                                                                                               to
                                                                                                                               our
                                                                                                                               Code
                                                                                                                               of
                                                                                                                               Conduct</B><I>.</I>&nbsp;&nbsp;Board
                                                                                                                               members
                                                                                                                               must
                                                                                                                               act
                                                                                                                               at
                                                                                                                               all
                                                                                                                               times
                                                                                                                               in
                                                                                                                               accordance
                                                                                                                               with
                                                                                                                               the
                                                                                                                               requirements
                                                                                                                               of
                                                                                                                               our
                                                                                                                               Code
                                                                                                                               of
                                                                                                                               Conduct.
                                                                                                                               This
                                                                                                                               obligation
                                                                                                                               includes
                                                                                                                               adherence
                                                                                                                               to
                                                                                                                               our
                                                                                                                               policies
                                                                                                                               with
                                                                                                                               respect
                                                                                                                               to
                                                                                                                               conflicts
                                                                                                                               of
                                                                                                                               interest,
                                                                                                                               ethical
                                                                                                                               conduct
                                                                                                                               in
                                                                                                                               business
                                                                                                                               dealings
                                                                                                                               and
                                                                                                                               respect
                                                                                                                               for
                                                                                                                               and
                                                                                                                               compliance
                                                                                                                               with
                                                                                                                               applicable
                                                                                                                               law.
                                                                                                                               Any
                                                                                                                               requested
                                                                                                                               waiver
                                                                                                                               of
                                                                                                                               the
                                                                                                                               requirements
                                                                                                                               of
                                                                                                                               the
                                                                                                                               Code
                                                                                                                               of
                                                                                                                               Conduct
                                                                                                                               with
                                                                                                                               respect
                                                                                                                               to
                                                                                                                               any
                                                                                                                               individual
                                                                                                                               director
                                                                                                                               or
                                                                                                                               executive
                                                                                                                               officer
                                                                                                                               must
                                                                                                                               be
                                                                                                                               reported
                                                                                                                               to,
                                                                                                                               and
                                                                                                                               subject
                                                                                                                               to,
                                                                                                                               the
                                                                                                                               approval
                                                                                                                               of
                                                                                                                               the
                                                                                                                               Board,
                                                                                                                               or
                                                                                                                               the
                                                                                                                               Audit
                                                                                                                               Committee.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>Board
                                                                                                                               Engagement</B><I>.</I>&nbsp;&nbsp;The
                                                                                                                               Board
                                                                                                                               has
                                                                                                                               regularly
                                                                                                                               scheduled
                                                                                                                               presentations
                                                                                                                               from
                                                                                                                               our
                                                                                                                               finance,
                                                                                                                               products,
                                                                                                                               sales
                                                                                                                               and
                                                                                                                               marketing
                                                                                                                               departments.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black"><B>No
                                                                                                                               Corporate
                                                                                                                               Loans</B><I>.</I>&nbsp;&nbsp;Our
                                                                                                                               stock
                                                                                                                               plans
                                                                                                                               and
                                                                                                                               practices
                                                                                                                               prohibit
                                                                                                                               us
                                                                                                                               from
                                                                                                                               making
                                                                                                                               corporate
                                                                                                                               loans
                                                                                                                               to
                                                                                                                               employees
                                                                                                                               for
                                                                                                                               the
                                                                                                                               exercise
                                                                                                                               of
                                                                                                                               stock
                                                                                                                               options
                                                                                                                               or
                                                                                                                               for
                                                                                                                               any
                                                                                                                               other
                                                                                                                               purpose.</FONT></TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">Risk Oversight</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">Management
is responsible for the day-to-day management of risks for Lakeland, while our Board of Directors, as a whole and through its committees,
is responsible for the oversight of risk management. The Board sets our overall risk management strategy and our risk appetite
and ensures the implementation of our risk management framework. Specific committees of the Board are responsible for overseeing
specific types of risk. Our Audit Committee periodically discusses risks as they relate to the Company&rsquo;s financial statements,
the evaluation of the effectiveness of internal control over financial reporting, compliance with legal and regulatory requirements
including Sarbanes-Oxley Act, and related party transactions, among other responsibilities set forth in the Audit Committee&rsquo;s
charter. Our Audit Committee also periodically may review our tax exposures and our internal processes to ensure compliance with
applicable laws and regulations. The Board of Directors monitors risks as they may be related to financing matters such as acquisitions
and dispositions, our capital structure, credit facilities, equity issuances, and liquidity. Our Compensation Committee establishes
our compensation policies and programs in such a manner that our executive officers are not incentivized to take on an inappropriate
level of risk. Our Nominating and Governance Committee reviews any employee reports regarding suspected violations of our Code
of Conduct. Each of our board committees delivers periodic reports to the Board, in order to keep the Board of Directors informed
about what transpires at committee meetings. In addition, if a particular risk is material or where otherwise appropriate, the
full Board may assume oversight over such risk, even if the risk was initially overseen by a committee.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">Code of Ethics</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
Board adopted our amended Code of Ethics on February 6, 2012 that applies to all officers, directors and employees. The Code of
Ethics sets forth information and procedures for employees to report ethical or accounting concerns, misconduct or violations
of the Code in a confidential manner. The Code of Ethics is available on our website at <U>www.lakeland.com</U> under the headings
Financial Information &ndash; Corporate Governance and Board Matters. Amendments to, and waivers from, the Code of Ethics will
be disclosed at the same website address provided above and in such filings as may be required pursuant to applicable law or listing
standards. We intend to satisfy the disclosure requirement under Item 5.05(c) of Form 8-K regarding certain amendments to, or
waivers from a provision of this code of ethics by posting such information on our website at <U>www.lakeland.com</U> under the
headings Financial Information &ndash; Corporate Governance and Board Matters.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">Compensation
Committee Interlocks and Insider Participation</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">The members
of our Compensation Committee during fiscal 2013 were Messrs. McAteer (Chairman), Kreft and Albro. None of these members is an
officer or employee of Lakeland, and none of our executive officers serves as a member of a Compensation Committee of any entity
that has one or more executive officers serving as a member of our Compensation Committee. <B> </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">EXECUTIVE
OFFICERS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">Our
Executive Officers are appointed by our Board and serve at its discretion. Set forth below is information regarding our current
Executive Officers:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 28%; border-bottom: windowtext 1pt solid"><FONT STYLE="color: Black"><B>NAME</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 64%; border-bottom: windowtext 1pt solid"><FONT STYLE="color: Black"><B>POSITION</B></FONT></TD>
    <TD NOWRAP STYLE="width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="width: 6%; border-bottom: windowtext 1pt solid"><FONT STYLE="color: Black"><B>AGE</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="color: Black">Christopher J. Ryan</FONT></TD>
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">Chief Executive Officer, President and Secretary</FONT></TD>
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">61</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="color: Black">Gary Pokrassa</FONT></TD>
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">Chief Financial Officer</FONT></TD>
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">65</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="color: Black">Stephen M. Bachelder</FONT></TD>
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">Chief Operating Officer</FONT></TD>
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">62</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="color: Black">Charles Roberson</FONT></TD>
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">Vice President, International Sales</FONT></TD>
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">51</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">Biographical
information regarding our Executive Officers can be found in our Annual Report on Form 10-K for the fiscal year ended January
31, 2013.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">EXECUTIVE
OFFICER COMPENSATION</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">We
currently qualify as a &ldquo;smaller reporting company&rdquo; as such term is defined in Rule 405 of the Securities Act of 1933,
as amended, and Item 10(f) of Regulation S-K. Accordingly, and in accordance with relevant Securities and Exchange Commission
rules and guidance, we have elected, with respect to the disclosures required by Item 402 (Executive Compensation) of Regulation
S-K, to comply, in some cases, with the requirements applicable to larger companies and, in other cases, with the disclosure requirements
applicable to smaller reporting companies. The following Executive Compensation Overview is not comparable to the &ldquo;Compensation
Discussion and Analysis&rdquo; that is required of SEC reporting companies that are not smaller reporting companies.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="font-variant: small-caps; color: Black">&nbsp;</FONT></P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="font-variant: small-caps; color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="font-variant: small-caps; color: Black">executive
compensation overview</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>Compensation
Committee</B><I>. </I>The Compensation Committee of our Board of Directors (the &ldquo;Committee&rdquo;) assists the Board in
discharging its responsibilities relating to compensation of the Company&rsquo;s executive officers and supervision of the Company&rsquo;s
stock plans and 401(k) Plans. The Committee reports to the Board of Directors and is responsible for: &nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings; color: Black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Developing
                                                                                                                guidelines for,
                                                                                                                and reviewing
                                                                                                                the compensation
                                                                                                                and performance
                                                                                                                of, the Company&rsquo;s
                                                                                                                executive officers;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings; color: Black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Evaluating
                                                                                                                the executive
                                                                                                                officers&rsquo;
                                                                                                                performance in
                                                                                                                light of these
                                                                                                                goals and objectives;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings; color: Black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Making
                                                                                                                recommendations
                                                                                                                to the Board of
                                                                                                                Directors regarding
                                                                                                                the management
                                                                                                                contracts of executive
                                                                                                                officers when
                                                                                                                they are proposed
                                                                                                                or renewed; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings; color: Black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Approving
                                                                                                                the compensation
                                                                                                                of the Chief Executive
                                                                                                                Officer.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>Compensation
Philosophy and Objectives</B><I>.</I> The Company seeks to pay its executive officers total compensation that is competitive with
other companies of comparable size and complexity. Generally, the types of compensation and benefits provided to the Chief Executive
Officer and other executive officers are comparable to those provided to other executive officers of small cap, publicly-traded
and similarly sized companies in the industry in which the Company operates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black">The
compensation policies of the Company are designed to: &nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -1.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings; color: Black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Increase
                                                                                                                stockholder value;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings; color: Black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Increase
                                                                                                                the overall performance
                                                                                                                of the Company;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings; color: Black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Attract,
                                                                                                                motivate and retain
                                                                                                                experienced and
                                                                                                                qualified executives;
                                                                                                                and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Wingdings; color: Black">&sect;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Incentivize
                                                                                                                the executive
                                                                                                                officers to achieve
                                                                                                                the highest level
                                                                                                                of Company financial
                                                                                                                performance.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">While
the Company seeks to maintain competitive compensation arrangements for its executives, it also strongly believes that the competitiveness
of the compensation packages should be based on the total compensation achievable by the executive officers and that a portion
of that compensation should be linked to the performance of the Company. Accordingly, the executive compensation packages provided
to the Chief Executive Officer and the other executive officers are structured to include, among other things and in addition
to base salary and benefits, equity incentives. A reasonable portion of the compensation packages for executive officers is in
the form of restricted stock grants, which are intended to provide incentives to executive officers to achieve long-term growth
in the price of the Company&rsquo;s common stock and additional annual cash bonus opportunities, which are intended to reward
executive officers for meeting annual financial performance goals. Overall compensation levels are set such that, for executive
officers to achieve a competitive compensation level, there must be both growth in the market price of the Company&rsquo;s common
stock and growth in the Company&rsquo;s earnings and revenues. The determination that such goals have been met and merit pay-outs
pursuant to the incentive portion of the overall compensation rests with the Committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
Committee believes that executive officer compensation should seek to align the interests of executives with those of the Company&rsquo;s
stockholders, by seeking to reward long-term growth (not short-term) in the value of the Company&rsquo;s common stock and to reward
the achievement of annual financial goals by the Company. The incentive components of compensation restricted stock grants and
annual cash bonuses for executive officers are linked to corporate financial performance as well as individual goals. This is
intended to keep the executive team focused on the core goal of overall long-term corporate performance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">When
setting or recommending compensation levels, the Committee considers the overall performance of the Company, the individual performance
of each of the executive officers, and their individual contributions to and ability to influence the Company&rsquo;s performance,
and also seeks to encourage teamwork amongst the executives. The Committee believes that the level of total compensation, including
base salary, bonus, restricted stock grants and benefits of executives should generally be maintained to compete with other public
and private companies of comparable size and complexity. The Committee bases its determinations on a variety of factors, including
the personal knowledge of market conditions that each member of the Committee has gained in his own experience managing businesses,
salary surveys available to the Company, the knowledge of the Chief Executive Officer and other executives as to local market
conditions, and information learned regarding the compensation levels at other small cap companies in the industrial apparel industry
and other similarly sized businesses. The Committee periodically evaluates the types and levels of compensation paid by the Company
to ensure that it is able to attract and retain qualified executive officers and that their compensation remains comparable to
compensation paid to similarly situated executives in comparable companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
following describes in more specific terms the elements of compensation that implement the compensation philosophy and objectives
described above, with specific reference to compensation earned by the named executive officers for the fiscal year ended January
31, 2013. &ldquo;Named executive officers&rdquo; refers to those executive officers named on the Summary Compensation Table that
immediately follows this discussion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>Base
Salaries</B>. The base salary of each of our named executive officers is fixed pursuant to the terms of their respective employment
agreements with us at the time a person initially becomes an executive officer by evaluating the responsibilities of the position,
the experience and knowledge of the individual and the competitive marketplace at that time for executive talent, including a
comparison to base salaries for comparable positions (considered in the context of the total compensation paid by such companies).
Salaries are reviewed from time to time thereafter, generally in connection with the expiration of employment agreements or when
other considerations warrant such review in the discretion of the Committee and Board of Directors, considering the foregoing
factors as well as the executive&rsquo;s performance and the other factors considered in setting total compensation described
above.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">When
salary adjustments are considered, they are made in the context of the total compensation for executive officers, consistent with
the core principles discussed above. In each case, the participants involved in recommending and approving salary adjustments
consider the performance of each executive officer, including consideration of new responsibilities and the previous year&rsquo;s
corporate performance. Individual performance evaluations take into account such factors as achievement of specific goals that
are driven by the Company&rsquo;s strategic plan and attainment of specific individual objectives. The factors impacting base
salary levels are not assigned specific weights but are considered as a totality, against the backdrop of the Company&rsquo;s
overall compensation philosophy, and salary adjustments are determined in the discretion of the Committee and the Board of Directors.
The base salaries paid in fiscal 2013 were set in prior years, except for a voluntary 8% reduction in officer base salary as of
July 2011 which continues in effect as of the date hereof and the voluntary 30% cash reduction the CEO, CFO and COO&rsquo;s base
salary payable in unvested restricted stock as of October 2012 which continue in effect as of the date hereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>Bonuses</B>.
There were no bonuses either earned or paid to executive officers for fiscal 2013. The Company has historically made its annual
bonuses eligible for executive officers based on corporate performance, as measured by reference to factors which the Committee
believes reflect objective performance criteria over which management generally has the ability to exert some degree of control.
For each of our named executive officers, all cash bonuses are at the discretion of the Committee, when formulas are set.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>Restricted
Stock Grants</B>. A third component of executive officers&rsquo; compensation is grants of restricted shares of common stock issued
pursuant to our 2012 Stock Incentive Plan approved by the Company&rsquo;s stockholders in June 2012. The Committee or the full
Board of Directors grants restricted stock to the Company&rsquo;s executives in order to align their interests with the interests
of the stockholders. Restricted stock grants are considered by the Company to be an effective long-term incentive because the
executives&rsquo; gains are linked to increases in stock value, which in turn provides stockholder gains. Restricted stock was
granted to executive officers in accordance with the terms of the 2012 Stock Incentive Plan. The restricted stock granted to executive
officers &ldquo;cliff&rdquo; vest at the end of three years, which the Company believes makes the grants a more effective retention
incentive, subject to the performance evaluation made by the Board of Directors in their sole discretion, at the end of the three-year
performance period. Restricted stock grants made to the executive officers pursuant to the 2012 Stock Incentive Plan reflect the
significant individual contributions the Committee expects the executive officers will make to the Company&rsquo;s operations
and implementation of the Company&rsquo;s development and growth programs, and the amounts of such grants were determined based
on the same considerations discussed above in the context of setting salaries and annual bonuses. The number of shares of restricted
stock granted is not tied to a formula or comparable company target ranges, but rather determined at the end of the three-year
performance period in the discretion of the Committee and the Board of Directors consistent with the compensation philosophy described
above. At the end of the three-year performance period, the number of shares (baseline, maximum or zero) determined by the Board
of Directors in its discretion will then vest. <B> </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>Setting
Executive Compensation</B><I>.</I> Base salaries and other compensation for the Chief Executive Officer and other executive officers
are set by the Committee and reflect a number of elements including recommendations by our Chief Executive Officer, Christopher
J. Ryan, as to the other executive officers based on evaluation of their performance and the other factors described above. The
Committee works closely with Mr.&nbsp;Ryan in establishing compensation levels for the other executive officers. Mr.&nbsp;Ryan
and the individual executive typically engage in discussions regarding the executive&rsquo;s salary, and Mr.&nbsp;Ryan reports
on such discussions and makes his own recommendations to the Committee. The Committee will separately discuss with Mr.&nbsp;Ryan
any proposed adjustment to his own compensation. The Committee reports to the Board of Directors on all proposed changes in executive
compensation, after it has formed a view on appropriate adjustments, and makes recommendations for consideration of the Board
for the Chief Executive Officer and the other executive officers. The Committee considers such recommendations and, thereafter,
sets the compensation level for Mr.&nbsp;Ryan, and for the other executive officers. Salary levels and other aspects of compensation
for executive officers historically have been set forth in employment agreements having terms of two to five years.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
Committee is charged with the responsibility for approving the compensation package for the Chief Executive Officer. The Chief
Executive Officer is not present during voting or deliberation on his performance or compensation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
Board of Directors or the Committee can exercise the right to modify any recommended adjustments or awards to the executive officers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>Retirement
Benefits</B><I>. </I>The Company does not provide any retirement benefits to its executive officers, other than matching from
time to time a portion of employee contributions to the Company&rsquo;s 401(k) plan. In August 2009, the Board of Directors determined
to suspend the Company&rsquo;s 401(k) match which continues in effect as of the date hereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>Employment
Agreements</B>. The Company enters into employment agreements with certain of its executive officers because it generally believes
that, in respect of key executive officers, there is a significant value in its competitive markets to setting out compensation
and benefit expectations in writing, maintaining appropriate non-competition, non-solicitation of employees and confidentiality
agreements with key executives, and agreeing in advance on post-termination payments and other obligations. These employment agreements
are described in more detail under the caption &ldquo;Employment Agreements&rdquo; below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black"><B>Taxation
and Accounting Matters</B><I>. </I>Section 162(m) of the Internal Revenue Code may impose a limit on the amount of compensation
we may deduct in any one year with respect to certain specified employees. Section 162(m) of the Code denies a federal income
tax deduction for certain compensation in excess of $1.0 million per year paid to the chief executive officer and the three other
most highly-paid executive officers (other than the chief financial officer) of a publicly-traded corporation. Certain types of
compensation, including compensation based on performance criteria that are approved in advance by stockholders, are excluded
from the deduction limit. We believe that Section 162(m) of the Code will not limit our tax deductions for executive compensation
for fiscal year 2013. The Compensation Committee&rsquo;s policy is to qualify compensation paid to our executive officers for
deductibility for federal income tax purposes to the extent feasible. However, to retain highly skilled executives and remain
competitive with other employers, the Compensation Committee has the right to authorize compensation that would not otherwise
be deductible under Section 162(m) or otherwise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: center; text-indent: 0.25in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-variant: small-caps; color: Black"><B>summary
compensation table </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">The table below
sets forth all salary, bonus and other compensation paid to our principal executive officer and each of the two highest paid executive
officers other than the principal executive officer (our &ldquo;Named Executive Officers&rdquo;) for the fiscal years ended January
31, 2013 and 2012. As used in this Proxy Statement, FY refers to a fiscal year ended January 31, for example, FY13 refers to the
fiscal year ended January 31, 2013.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 96%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt; color: Black">Name and
    Principal </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 8pt"> Position</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt; color: Black">Fiscal
    </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 8pt"> Year</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt; color: Black">Salary
    </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 8pt"> ($)</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt; color: Black">Bonus
    </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 8pt"> ($)</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black"><SUP>&nbsp;</SUP></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt; color: Black">Stock
    </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 8pt"> Awards<SUP>(1) (2)</SUP></FONT><BR><FONT STYLE="font-size: 8pt">
    ($)</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black"><SUP>&nbsp;</SUP></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt; color: Black">Option
    </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 8pt"> Awards </FONT><BR><FONT STYLE="font-size: 8pt"> ($)</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt; color: Black">Non-Equity</FONT><FONT STYLE="color: Black"><BR>
    <FONT STYLE="font-size: 8pt">Incentive Plan</FONT><BR><FONT STYLE="font-size: 8pt"> Compensation </FONT><BR><FONT STYLE="font-size: 8pt">($)</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt; color: Black">All
    other</FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 8pt"> Compensation </FONT><BR><FONT STYLE="font-size: 8pt">($)</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black"><SUP>&nbsp;</SUP></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt; color: Black">Total</FONT><FONT STYLE="color: Black"><BR>
    <FONT STYLE="font-size: 8pt">($)</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; width: 20%"><FONT STYLE="font-size: 8pt; color: Black">Christopher J. Ryan </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 8pt">Chief
    Executive Officer</FONT></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt; color: Black">2013</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt; color: Black">2012</FONT></P></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">329,785</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">368,000</FONT></P></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT><FONT STYLE="color: Black"><BR>
                                                                                           <FONT STYLE="font-size: 8pt">17,250</FONT></FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black"><SUP>(3)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">224,820</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">68,983</FONT></P></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black"><SUP>(4)</SUP></FONT><FONT STYLE="color: Black"><BR>
                                                                                                                                                                                                                                                                                                                                                                                                                   <FONT STYLE="font-size: 8pt"><SUP>(3)</SUP></FONT></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">28,495</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">29,765</FONT></P></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black"><SUP>(5)</SUP></FONT><FONT STYLE="color: Black"><BR>
                                                                                                                                                                                                                                                                                                                                                                                                                  <FONT STYLE="font-size: 8pt"><SUP>(6)</SUP></FONT></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">583,100</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">483,998</FONT></P></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">Gary Pokrassa </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 8pt">Chief
    Financial Officer</FONT></FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt; color: Black">2013</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt; color: Black">2012</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">185,448</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">207,036</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">131,667</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">59,166</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black"><SUP>(4)</SUP></FONT><FONT STYLE="color: Black"><BR>
                                                                                                                                                                                                                                                                                                                                                                                             <FONT STYLE="font-size: 8pt"><SUP>(3)</SUP></FONT></FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">10,929</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">10,929</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black"><SUP>(7)</SUP></FONT><FONT STYLE="color: Black"><BR>
                                                                                                                                                                                                                                                                                                                                                                                            <FONT STYLE="font-size: 8pt"><SUP>(7)</SUP></FONT></FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">328,044</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">277,131</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">Stephen M. Bachelder </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 8pt">Chief
    Operating Officer</FONT></FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt; color: Black">2013</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt; color: Black">2012</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">239,094</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">187,600</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">210,797</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">90,088</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black"><SUP>(4)</SUP></FONT><FONT STYLE="color: Black"><BR>
                                                                                                                                                                                                                                                                                                                                                                                             <FONT STYLE="font-size: 8pt"><SUP>(8)</SUP></FONT><BR></FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">&mdash;</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">25,251</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">30,116</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black"><SUP>(10)</SUP></FONT><FONT STYLE="color: Black"><BR>
                                                                                                                                                                                                                                                                                                                                                                                            <FONT STYLE="font-size: 8pt"><SUP>(9)</SUP></FONT></FONT></TD><TD><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">475,142</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-size: 8pt; color: Black">305,804</FONT></P></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt; color: Black">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>&nbsp;</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>(1)
</SUP>Aggregate grant date fair value for grants made in FY13 and FY12. <B> </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>(2)
</SUP>Shares and their values are reported under SEC rules in this chart reflect the total over the three-years of the 2012 Stock
Incentive Plan at the stock price at date of grant (mostly $8), and at the maximum possible level for the plan. Actual total number
of shares awarded may be less, and the awards are spread over the three-year vesting period of the plan, not just one, as implied
by the chart. The Board of Directors has set the estimate performance at zero based on the performance since June 2012 when
these stocks were granted, which would result in no stock awards unless performance improves.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>(3)
</SUP>Consists of discretionary bonus for FY11 of $69,000 paid to Mr. Ryan in FY12, which Mr. Ryan elected 25% be paid in cash
and the balance taken in 8,087 shares of restrictive stock. Discretionary bonus taken in 6,407 shares of restrictive stock by
Mr. Pokrassa, plus 500 shares granted under the matching program to Mr. Pokrassa.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>(4)
</SUP>Consists of 30% cash compensation foregone and paid in restricted stock subject to two year vesting: Mr. Ryan $50,940; Mr.
Bachelder $36,917 and Mr. Pokrassa $28,617. Also includes 3 year restricted stock awards at maximum: Mr. Ryan $173,880, Mr. Bachelder
$173,880 and Mr. Pokrassa $103,040. All share award values based on share price on date of grant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>(5)
</SUP>Includes $26,765 in life insurance premiums paid by the Company and use of a Company owned car and, beginning January 1,
2013, a $9,000 per annum auto allowance of which $1,730 is included.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>(6)
</SUP>Includes $26,765 in life insurance premiums paid by the Company and us of a Company owned car.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>(7)
</SUP>Includes $1,929 in life and disability insurance premiums paid by the Company and $9,000 auto allowance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>(8)
</SUP>Mr. Bachelder was granted 3,000 shares of restricted stock under the matching program valued at $23,980 as of date of grant
and 8,014 performance shares valued at $64,108 upon becoming an employee of the Company in March 2011.<SUP> </SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>(9) </SUP>Includes
$21,366.18 in healthcare reimbursement, as Mr. Bachelder does not participate in the Company medical plan, and a cash payment
of $8,750 for non-employee director fees paid to Mr. Bachelder in FY12 prior to his employment with the Company in March
2011.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-align: justify"><FONT STYLE="color: Black"><SUP>(10)
</SUP>Includes $25,251 in healthcare reimbursement as Mr. Bachelder does not participate in the Company medical plan.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="font-variant: small-caps; color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="font-variant: small-caps; color: Black">narrative
to summary compensation table</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">We are party
to employment agreements with our named Executive Officers, the terms of which are set forth below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black"><B><I>Christopher
J. Ryan</I></B> serves as Chief Executive Officer, President and Secretary of the Company. He also serves as President and Chief
Operating Officer or Director and Secretary/Assistant Secretary of all of the Company&rsquo;s subsidiaries. Mr. Ryan is party
to an employment agreement with the Company which commenced on April 16, 2010 and automatically renews for two years unless notice
not to renew is provided by either party. The agreement currently expires on April 16, 2015. Pursuant to the agreement, Mr. Ryan
was to be paid an annual base salary of $400,000 in FY13. As a result of a voluntary management reduction in his salary by 8%
in July 2011, Mr. Ryan was paid a base salary rate of $368,000 in FY12 and in October 2012 volunteered to have a 30% cash reduction
in salary and to receive this reduction in Restricted Stock, subject to two year vesting, resulting in an annualized cash compensation
reduction of $110,400. Mr. Ryan was not granted any stock options and received grants of 27,000 shares of restricted stock in
fiscal 2013 at maximum under the three year performance plan, but was eligible to receive an incentive cash bonus payment based
upon increases in earnings per share as set by the Compensation Committee, in its discretion, and participates in benefit plans
and is entitled to the other benefits available to all other senior executives. These benefits include, without limitation, health
insurance coverage, disability and life insurance, a mobile phone and an auto allowance. Mr. Ryan had a contractual
bonus for FY12 and FY13 based on $3,000 per each penny of EPS over a predetermined amount set by the Board at the beginning of
each year, subject to certain limitations; however, Mr. Ryan did not earn a bonus for either FY13 or FY12. Mr. Ryan also participates
in the 2012 Stock Incentive Plan. Pursuant to his employment agreement, Mr. Ryan is subject to non-compete and confidentiality
restrictions during the term of his employment and for a period of one year thereafter. Potential payments to Mr. Ryan in connection
with any termination or change of control are discussed below under &ldquo;Potential Payments Upon Termination&rdquo;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black"><B><I>Stephen
M. Bachelder </I></B><FONT STYLE="font-weight: normal">serves as Chief Operating Officer of the Company. Mr. Bachelder is party
to an employment agreement with the Company which commenced on March 1, 2011 and expires on March 1, 2014, unless earlier terminated
pursuant to the terms of the employment agreement. </FONT>Pursuant to the agreement, Mr. Bachelder was to be paid an annual base
salary of $290,000 in FY13. As a result of a voluntary management reduction in his salary by 8% in July 2011, Mr. Bachelder was
paid a base salary rate of $239,094 in FY13 and in October 2012 volunteered to have a 30% cash reduction in salary and to receive
this reduction in Restricted Stock, subject to two year vesting, resulting in an annualized cash compensation reduction of $80,040.
Mr. Bachelder was not granted any stock options and received grants of 27,000 shares of restricted stock in fiscal 2013, and participates
in benefit plans and is entitled to the other benefits available to all other senior executives and<FONT STYLE="font-weight: normal">
is eligible to be paid a discretionary stock bonus or cash bonus as determined by the Company&rsquo;s Chief Executive Officer
based on performance. Mr. Bachelder is also entitled to receive up to a maximum of 15,625 shares of restricted stock which may
be added to his compensation and to participate in other benefit plans available to all other senior executives. Such shares are
subject to two-year time vesting. Pursuant to his employment agreement, Mr. </FONT>Bachelder is subject to non-compete and confidentiality
restrictions during the term of his employment and for a period of 18 months and five years, respectively, thereafter. <FONT STYLE="font-weight: normal">The
p</FONT>otential payments to Mr. Bachelder in connection with any termination are discussed below under &ldquo;Potential Payments
Upon Termination&rdquo;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-weight: normal; color: Black">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black"><B><I>Gary
Pokrassa</I></B><I> </I>serves as the Chief Financial Officer of the Company. Pursuant to the terms of his employment agreement
with the Company, Mr. Pokrassa&rsquo;s term of employment is for a period of three years commencing on January 31, 2012 and will
expire on January 31, 2015, unless earlier terminated pursuant to the terms of the agreement. The agreement provides for an annual
base salary of $225,000, less an 8% voluntary management imposed salary reduction, or $207,000, until such time as the voluntary
reduction may be lifted, and in October 2012 volunteered to have a 30% cash reduction in salary and to receive this reduction
in Restricted Stock subject to two year vesting, resulting in an annualized cash compensation reduction of $62,100. If the 8%
reduction is rescinded, Mr. Pokrassa&rsquo;s annual base salary will increase to $250,000. Mr. Pokrassa is also entitled to receive
an annual bonus under an incentive compensation plan as finally determined by the Compensation Committee. The annual bonus awarded
will be between 80% and 120% of Mr. Pokrassa&rsquo;s target bonus amount of $85,000, subject to adjustment from time to time,
and calculated based upon the Company&rsquo;s actual earnings per share (&ldquo;EPS&rdquo;) as compared with an EPS target for
such year established by the Compensation Committee with Mr. Pokrassa&rsquo;s input. No bonus was earned for FY13. Mr. Pokrassa
is entitled to receive health insurance coverage, disability and life insurance, a car allowance and participation in all other
benefit plans offered by the Company to other senior executives. Pursuant to his employment agreement, Mr. Pokrassa is subject
to non-compete, non-solicitation and confidentiality restrictions during the term of his employment and for a period of one year
thereafter. Potential payments to Mr. Pokrassa in connection with termination or change of control are discussed below under &ldquo;Potential
Payments Upon Termination&rdquo;. Mr. Pokrassa was not granted any stock options and received grants of 16,000 shares of restricted
stock in fiscal 2013 at maximum under the three year performance plan.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps; color: Black"><B>OUTSTANDING
EQUITY AWARDS AT FISCAL 2013 YEAR-END</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps; color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="color: Black">The
following table sets forth information with respect to outstanding equity-based awards at January 31, 2013 for our Named Executive
Officers.</FONT></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="18" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Option
    Awards</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="14" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Stock
    Awards</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Name</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Number</FONT><FONT STYLE="color: Black"><BR>
    <FONT STYLE="font-size: 7pt">of</FONT><BR><FONT STYLE="font-size: 7pt"> Securities</FONT><BR><FONT STYLE="font-size: 7pt">
    Underlying </FONT><BR>
    <FONT STYLE="font-size: 7pt">Un-</FONT><BR>
    <FONT STYLE="font-size: 7pt">exercised</FONT><BR><FONT STYLE="font-size: 7pt"> Options</FONT><BR><FONT STYLE="font-size: 7pt">
    (#)</FONT><BR><FONT STYLE="font-size: 7pt"> Exercisable</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Number
    of</FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 7pt"> Securities</FONT><BR><FONT STYLE="font-size: 7pt"> Underlying</FONT><BR>
    <FONT STYLE="font-size: 7pt">Unexercised</FONT><BR>
    <FONT STYLE="font-size: 7pt">Options (#) </FONT><BR><FONT STYLE="font-size: 7pt">Unexercisable</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Equity</FONT><FONT STYLE="color: Black"><BR>
    <FONT STYLE="font-size: 7pt">Incentive Plan</FONT><BR><FONT STYLE="font-size: 7pt"> Awards:</FONT><BR><FONT STYLE="font-size: 7pt">
    Number of</FONT><BR>
    <FONT STYLE="font-size: 7pt">Securities</FONT><BR><FONT STYLE="font-size: 7pt"> Underlying</FONT><BR><FONT STYLE="font-size: 7pt">
    Unexercised</FONT><BR><FONT STYLE="font-size: 7pt"> Unearned</FONT><BR><FONT STYLE="font-size: 7pt"> Options (#)</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Option</FONT><FONT STYLE="color: Black"><BR>
    <FONT STYLE="font-size: 7pt">Exercise</FONT><BR><FONT STYLE="font-size: 7pt"> Price ($)</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Option</FONT><FONT STYLE="color: Black"><BR>
    <FONT STYLE="font-size: 7pt">Expiration</FONT><BR><FONT STYLE="font-size: 7pt"> Date</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt; color: Black">Number</FONT><FONT STYLE="color: Black"><BR>
                                                                                      <FONT STYLE="font-size: 7pt">of Shares</FONT><BR>
                                                                                      <FONT STYLE="font-size: 7pt">or Units</FONT><BR>
                                                                                      <FONT STYLE="font-size: 7pt">of Stock</FONT><BR>
                                                                                      <FONT STYLE="font-size: 7pt">that have not</FONT><BR>
                                                                                      <FONT STYLE="font-size: 7pt">Vested</FONT><BR>
                                                                                      <FONT STYLE="font-size: 7pt">(#)<SUP>(1)</SUP>&nbsp;</FONT></FONT></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Market</FONT><FONT STYLE="color: Black"><BR>
    <FONT STYLE="font-size: 7pt">Value of</FONT><BR><FONT STYLE="font-size: 7pt"> Shares or</FONT><BR><FONT STYLE="font-size: 7pt">
    Units of</FONT><BR><FONT STYLE="font-size: 7pt"> Stock that </FONT><BR><FONT STYLE="font-size: 7pt"> have not</FONT><BR><FONT STYLE="font-size: 7pt">
    Vested ($)</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Equity
    </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 7pt"> Incentive </FONT><BR>
    <FONT STYLE="font-size: 7pt">Plan </FONT><BR><FONT STYLE="font-size: 7pt"> Awards: </FONT><BR><FONT STYLE="font-size: 7pt">
    Number of </FONT><BR><FONT STYLE="font-size: 7pt"> Unearned </FONT><BR>
    <FONT STYLE="font-size: 7pt">Shares, </FONT><BR><FONT STYLE="font-size: 7pt"> Units or </FONT><BR><FONT STYLE="font-size: 7pt">
    Other </FONT><BR><FONT STYLE="font-size: 7pt"> Rights that </FONT><BR><FONT STYLE="font-size: 7pt"> have not </FONT><BR>
    <FONT STYLE="font-size: 7pt">Vested </FONT><BR><FONT STYLE="font-size: 7pt"> (#)<SUP>(2)</SUP></FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7pt; color: Black">Equity
    </FONT><FONT STYLE="color: Black"><BR><FONT STYLE="font-size: 7pt"> Incentive </FONT><BR><FONT STYLE="font-size: 7pt"> Plan
    </FONT><BR><FONT STYLE="font-size: 7pt"> Awards: </FONT><BR>
    <FONT STYLE="font-size: 7pt">Market or </FONT><BR><FONT STYLE="font-size: 7pt"> Payout of </FONT><BR><FONT STYLE="font-size: 7pt">
    Unearned </FONT><BR>
    <FONT STYLE="font-size: 7pt">Shares, </FONT><BR><FONT STYLE="font-size: 7pt"> Units or </FONT><BR><FONT STYLE="font-size: 7pt">
    Other </FONT><BR><FONT STYLE="font-size: 7pt"> Rights that </FONT><BR><FONT STYLE="font-size: 7pt"> have not </FONT><BR><FONT STYLE="font-size: 7pt">
    Vested ($)<SUP>(2)</SUP></FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; width: 19%"><FONT STYLE="font-size: 7pt; color: Black">Christopher J. Ryan CEO</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 7pt; color: Black">17,493</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 7pt; color: Black">88,338</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 7pt; color: Black">27,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-size: 7pt; color: Black">136,350</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">Gary Pokrassa CFO</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">12,198</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">61,601</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">16,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">80,800</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">Stephen M. Bachelder COO</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">9,820</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">49,590</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">27,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 7pt; color: Black">136,350</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 7pt; color: Black">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="color: Black"><SUP>(1)
</SUP>Number of unvested shares granted and outstanding at January 31, 2013 pursuant to matching program and bonus in stock plan
pursuant to the 2009 Equity Plan, the 2012 Stock Incentive Plan and the 30% reduction in cash compensation.<B> </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="color: Black"><SUP>(2)
</SUP>Shares and their values are reported under SEC rules in this chart reflect the total over the three-years of the 2012 Stock
Incentive Plan at the stock price at date of grant (mostly $8), and at the maximum possible level for the plan. Actual total number
of shares awarded may be less, and the awards are spread over the three-year vesting period of the plan, not just one, as implied
by the chart.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="color: Black">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9pt; text-align: justify; text-indent: -9pt"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">POTENTIAL
PAYMENTS UPON TERMINATION</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black"><B>Christopher
J. Ryan</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">Pursuant
to the terms of his employment agreement, if Mr. Ryan is terminated by the Company without cause (as defined in the employment
agreement) or he terminates his employment for &ldquo;good reason&rdquo; (as defined in the employment agreement), the Company
is obligated to pay him, within 30 days after the date of termination, (a) his accrued and unpaid annual base salary through the
date of termination, accrued benefits payable under compensation plans, programs or arrangements, and accrued vacation pay (collectively,
the &ldquo;Accrued Obligations&rdquo;), (b) his pro rata share of the Current Target Bonus (as defined in the employment agreement),
if any, payable during the year of his termination, and (c) his base salary and Current Target Bonus as though he had remained
in the Company&rsquo;s employ until the contract expiration date (April 16, 2015) or for a period beginning on the date of termination
and ending two years thereafter, whichever is longer. The Company may elect to make the balance of such payments then remaining
in a lump sum discounted to present value. In addition, Mr. Ryan would be entitled to a continuation of his medical and health
benefits for a period of two years beginning on the date of termination.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">In
the event a Triggering Transaction&rdquo; (defined as a &ldquo;change of control,&rdquo; as defined in the employment agreement)
occurs during the term of his employment agreement and within four years after the Triggering Transaction, the Company terminates
Mr. Ryan without cause or Mr. Ryan terminates his employment for good reason, or if one of the aforementioned terminations occurs
within six months prior to the earlier of (i) a Triggering Transaction or (ii) Mr. Ryan&rsquo;s execution of an agreement which
results in a Triggering Transaction, then Mr. Ryan shall be entitled to, as of the date of termination or the date of the Triggering
Transaction, as applicable, (i) the Accrued Obligations, (ii) his pro rata share of the Current Target Bonus, if any, payable
during the year of his termination, and (iii) a severance amount equal to 3.99 times an amount equal to his then current annual
base salary and Current Target Bonus. If any of these payments provided to Mr. Ryan would be subject to the excise tax imposed
by Section 4999 of the Code, Mr. Ryan shall be entitled to a Gross-up Payment (as defined in the employment agreement). In addition,
all stock options held by Mr. Ryan shall immediately vest and be exercisable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">In
the event Mr. Ryan&rsquo;s employment is terminated as a result of his death or disability (as defined in the employment agreement)
or if Mr. Ryan terminates his employment other than for good reason, the employment agreement shall immediately terminate and
Mr. Ryan or his representatives or beneficiaries shall be entitled to all Accrued Obligations and all other accrued amounts, if
any, to which he is entitled as of the date of termination in connection with any benefits or under any incentive compensation
plan or programs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black">Stephen M.
Bachelder</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">Under the terms
of his employment agreement, either Mr. Bachelder or the Company may terminate his employment at any time. In the event Mr. Bachelder
terminates his employment or the Company terminates him for cause (as defined in the employment agreement), he would be entitled
to his accrued and unpaid base salary through the date of termination and all other benefits, bonuses and stock awards accrued
through that date. If the Company shall terminate Mr. Bachelder without cause or Mr. Bachelder terminates his employment for good
reason (as defined in the employment agreement), he would be entitled to one years&rsquo; base salary and any bonus, stock awards
and other benefits that would have accrued within the one year following the date of termination, including those that accrued
as of the date of termination. The estimated amount of his bonus to be paid pursuant to the employment agreement for the fiscal
year during which the termination occurs shall be determined in good faith by the Compensation Committee of the Board of Directors
based upon the Company&rsquo;s results of operations for that portion of the fiscal year through the effective date of the termination
and the Company&rsquo;s historical results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
Company may terminate Mr. Bachelder&rsquo;s employment agreement if he becomes disabled (as defined in the employment agreement).
Upon death, Mr. Bachelder&rsquo;s estate is entitled to receive his base salary and all benefits accrued through the last day
of the month in which his death occurred.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="color: Black"><B>Gary Pokrassa</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">Pursuant to
the terms of Mr. Pokrassa&rsquo;s employment agreement, if Mr. Pokrassa&rsquo;s employment is terminated &ldquo;for cause&rdquo;
(as defined in the employment agreement), his employment agreement would terminate immediately and he would be paid his accrued
and unpaid annual base salary through the date of termination, any annual bonus earned for the year prior to the year of termination
but not yet paid and any other employee benefits generally paid by the Company through the date of termination (collectively,
the &ldquo;GP Accrued Obligations&rdquo;). In the event Mr. Pokrassa terminates his employment for &ldquo;good reason&rdquo; (as
defined in the employment agreement) or he is terminated by the Company without cause, Mr. Pokrassa is entitled to be paid (a)
the GP Accrued Obligations, (b) an additional twelve months of his then current base salary payable in equal monthly installments,
and (c) a pro rata portion of any annual bonus earned for the year of termination through the date of termination, as determined
in good faith by the Compensation Committee. In the event Mr. Pokrassa is terminated without cause or if he terminates for good
reason within 24 months after a change in control (as defined in the employment agreement), the Company is obligated to pay him
(a) the GP Accrued Obligations, (b) a lump sum amount equal to 24 months of base salary as in effect at termination or during
the year immediately prior to the change in control, whichever is greater, and (c) two times the Target Bonus Amount (as defined
in the employment agreement) in effect at termination or the year immediately prior to the change in control, whichever is greater.
In the event of Mr. Pokrassa&rsquo;s death or disability (as defined in the employment agreement), Mr. Pokrassa or his beneficiary
or estate is entitled to receive the Accrued Obligations and a pro-rata portion of his annual bonus, if any, for the year of termination
through the date of termination. Mr. Pokrassa has the right to terminate his agreement at any time on 60 days written notice,
in which event he will be entitled to the GP Accrued Obligations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
following table sets forth certain information regarding the beneficial ownership of the Company&rsquo;s outstanding common stock
as of April 23, 2013: (i) by each person who is known by the Company to beneficially own more than 5% of the Common Stock; (ii)
by each of the named executive officers of the Company; (iii) by each director and nominee for director of the Company; and (iv)
all directors and executive officers of the Company as a group.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
shares &ldquo;beneficially owned&rdquo; by a person are determined in accordance with the definition of &ldquo;beneficial ownership&rdquo;
set forth in the regulations of the SEC and, accordingly, shares of our common stock underlying options and other convertible
securities that are exercisable or convertible within 60 days of April 23, 2013 and shares of our common stock underlying restricted
stock awards that vest within 60 days of April 23, 2013 are deemed to be beneficially owned by the person holding such securities
and to be outstanding for purposes of determining such holder&rsquo;s percentage ownership. Shares of common stock subject to
options or other convertible securities that are not exercisable or convertible and restricted stock awards that do not vest within
60 days from April 23, 2013 are not included in the table below as &ldquo;beneficially owned&rdquo;. The same securities may be
beneficially owned by more than one person.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">Except
as otherwise noted, the persons named in the table have sole voting and investment power with respect to their shares of Common
Stock shown as beneficially owned by them and the address for each beneficial owner, unless otherwise noted, is c/o Lakeland Industries,
Inc. 701 Koehler Avenue, Suite 7, Ronkonkoma, New York 11779.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">Directors
                                                                          and Officers</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">Name</FONT></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">#
                                                                                      of Common</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">Shares
                                                                                                                                                                                             Beneficially
                                                                                                                                                                                             Owned
                                                                                                                                                                                             <SUP>(1)</SUP></FONT></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="color: Black"><SUP>&nbsp;</SUP></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: center; text-indent: -3in"><FONT STYLE="color: Black">Percent</FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: center; text-indent: -3in"><FONT STYLE="color: Black">of
                                                                                                                                                                                                                    Class</FONT></P></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">Title</FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 25%; text-align: left; vertical-align: top"><FONT STYLE="color: Black">Christopher J. Ryan</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="width: 22%; text-align: right"><FONT STYLE="color: Black">467,602</FONT></TD><TD NOWRAP STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black"><SUP>(3)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="width: 22%; text-align: right"><FONT STYLE="color: Black">8.72</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black">%</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 24%; text-align: left"><FONT STYLE="color: Black">CEO, President, Secretary and Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">Stephen M. Bachelder</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">29,585</FONT></TD><TD NOWRAP STYLE="text-align: left"><FONT STYLE="color: Black"><SUP>(2)(4)</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">*</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">COO, Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">Duane W. Albro</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">11,204</FONT></TD><TD NOWRAP STYLE="text-align: left"><FONT STYLE="color: Black"><SUP>(6)</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">*</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">Chairman of the Board</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">John Kreft</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">16,344</FONT></TD><TD NOWRAP STYLE="text-align: left"><FONT STYLE="color: Black"><SUP>(5)</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">*</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">Thomas McAteer</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">8,102</FONT></TD><TD NOWRAP STYLE="text-align: left"><FONT STYLE="color: Black"><SUP>(7)</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">*</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">James M. Jenkins</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">5,000</FONT></TD><TD NOWRAP STYLE="text-align: left"><FONT STYLE="color: Black"><SUP>(9)</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">*</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">Douglas B. Benedict</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">5,000</FONT></TD><TD NOWRAP STYLE="text-align: left"><FONT STYLE="color: Black"><SUP>(9)</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">*</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">Director</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">Gary Pokrassa</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">26,894</FONT></TD><TD NOWRAP STYLE="text-align: left"><FONT STYLE="color: Black"><SUP>(2)</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">*</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">Chief Financial Officer</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">All officers and directors as a group (9 persons)</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">588,654</FONT></TD><TD NOWRAP STYLE="text-align: left"><FONT STYLE="color: Black"><SUP>(2)(8)</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">12.53</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">%</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black">*</FONT></TD><TD><FONT STYLE="color: Black">Less than 1%.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(1)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Table
                                                                       does not include the stock grants under the Company&rsquo;s
                                                                       2012 Stock Incentive Plan (performance vesting at end of
                                                                       3 years, date of grant June 2012) at baseline or maximum.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(2)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Does
                                                                       not include 3,500 shares to be issued pursuant to the matching
                                                                       shares provision of the 2009 Incentive Plan as follows:
                                                                       Gary Pokrassa 500 shares; Stephen Bachelder 3,000 shares,</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(3)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Includes
                                                                       14,641 shares owned by Mr. Ryan&rsquo;s wife, and 62,956
                                                                       which Mr. Ryan votes as Executor of the Estate of Mary
                                                                       Elizabeth Ryan.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(4)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Includes
                                                                       1,000 shares underlying options granted June 20, 2009 and
                                                                       June 18, 2008.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(5)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Includes
                                                                       1,000 shares underlying options granted June 18, 2008 and
                                                                       1,000 options granted June 15, 2011.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(6)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Includes
                                                                       5,000 shares underlying options granted April 17, 2009.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(7)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Includes
                                                                       5,000 shares underlying options granted February 25, 2011.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(8)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Includes
                                                                       24,000 shares underlying options granted between June 18,
                                                                       2008 and June 20, 2012. Also includes 8,687 shares beneficially
                                                                       owned by other executive officers.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(9)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Includes
                                                                       5,000 shares underlying options awarded June 20, 2012.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="color: Black">Security Ownership of Certain
    Beneficial Owners</FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt; color: Black">Amount
    and Nature of</FONT><FONT STYLE="color: Black"><BR>
    <FONT STYLE="font-size: 10pt">Beneficial Ownership</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="color: Black"><SUP>&nbsp;</SUP></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" NOWRAP STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt; color: Black">Percent
    of Shares</FONT><FONT STYLE="color: Black"><BR>
    <FONT STYLE="font-size: 10pt">of Common Stock </FONT><BR>
    <FONT STYLE="font-size: 10pt">Outstanding</FONT></FONT></TD><TD NOWRAP STYLE="padding-bottom: 1pt"><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 64%; text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="color: Black">Pacific Dunlop
Investments (USA) Inc. </FONT><BR><FONT STYLE="color: Black">c/o Ansell Healthcare Products LLC<BR>
200 Schulz Drive </FONT><BR><FONT STYLE="color: Black">Red
Bank, NJ 07701</FONT></P></TD><TD STYLE="width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="width: 15%; text-align: right"><FONT STYLE="color: Black">504,896</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black"><SUP>(10)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="width: 15%; text-align: right"><FONT STYLE="color: Black">9.45</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="color: Black">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="color: Black">Dimensional Fund Advisors,
                                 LP</FONT></P>
                                 <P STYLE="margin-top: 0; margin-bottom: 0; margin-left: 0.25in"><FONT STYLE="color: Black">Palisades
                                 West 6300 Bee Cave Road, Bldg #1 <BR>Austin, TX 78746</FONT></P></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">413,214</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black"><SUP>(11)</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">7.73</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="color: Black">Ancora Advisors, LLC and
                                 <BR>Richard A. Barone</FONT></P>
                                 <P STYLE="margin-top: 0; margin-bottom: 0; margin-left: 0.25in"><FONT STYLE="color: Black">One
                                 Chagrin Highlands <BR>2000 Auburn Drive, Suite 300 <BR>Cleveland, OH 44122</FONT></P></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">407,782</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black"><SUP>(12)</SUP></FONT></TD><TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="color: Black">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="color: Black">7.63</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="color: Black">%</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(10)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Based
                                                                        on the Schedule 13D/A filed with the Securities and Exchange
                                                                        Commission on October 16, 2012;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(11)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Based
                                                                        on the Schedule 13G/A filed with the Securities and Exchange
                                                                        Commission on February 11, 2013;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="color: Black"><SUP>(12)</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="color: Black">Based
                                                                        on the Schedule 13D filed with the Securities and Exchange
                                                                        Commission on April 23, 2013. According to said schedule
                                                                        13D, Richard A. Barone, as Chairman of Ancora Advisors
                                                                        LLC, has the power to vote and dispose of the shares held
                                                                        by the clients of the investments funds advised by Ancora
                                                                        Advisors LLC.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in"><FONT STYLE="color: Black"><SUP>&nbsp;</SUP></FONT></P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">It
is the Company&rsquo;s policy that any material transaction involving our directors, executive officers and any other person that
is a &ldquo;related person&rdquo; within the meaning of SEC regulations is required to be reported to our Chief Executive Officer.
In addition, all related party transactions are required to be reported to the Audit Committee, which, with the assistance of
legal counsel and such other advisors as it deems appropriate, is responsible for reviewing, approving or ratifying any such related
party transaction. The Audit Committee shall approve only those related party transactions that it believes are in, or not inconsistent
with, the best interests of the Company. A written policy to this effect has been adopted by our Board of Directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">In
addition, the Audit Committee generally conducts an annual review of all such transactions. In addition, every quarter, a report
maintained by the Company&rsquo;s accounting staff is reviewed and approved by the Chief Executive Officer and Chief Financial
Officer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">SECTION
16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">Section 16
(a) of the Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;), requires the Company&rsquo;s directors, officers
and beneficial owners of more than 10% of the Common Stock (&ldquo;Reporting Persons&rdquo;) to file with the SEC initial reports
of ownership of the Company&rsquo;s equity securities and to file subsequent reports when there are changes in such ownership.
Reporting Persons are required by SEC regulations to furnish the Company with copies of all Section 16(a) reports they file. Based
solely upon our review of the copies of all Forms 3, 4 and 5 and amendments to these forms, we believe that all Reporting Persons
complied on a timely basis with all filing requirements applicable to them with respect to our fiscal year ended January 31, 2013.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">STOCKHOLDER
PROPOSALS &ndash; 2014 MEETING</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">Pursuant to
the proxy rules promulgated under the Exchange Act, Lakeland stockholders are notified that the deadline for providing Lakeland
with timely notice of any stockholder proposal intended to be included in the proxy materials for Lakeland&rsquo;s Annual Meeting
to be held in 2014 (the &ldquo;2014 Annual Meeting&rdquo;) will be January 20, 2014, 120 calendar days prior to the first anniversary
of the date of the Company&rsquo;s proxy statement for its 2013 annual meeting. Such proposal must be submitted in writing to
Lakeland&rsquo;s Corporate Secretary at the principal executive offices of Lakeland located at 701 Koehler Avenue, Suite 7, Ronkonkoma,
New York 11779<FONT STYLE="font-size: 10pt">.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">If you wish
to submit a proposal outside of the process of Rule 14a-8 under the Exchange Act, in order for such proposal to be considered
&ldquo;timely&rdquo; for the purposes of Rule 14a-4(c) under the Exchange Act, the proposal must be received at the above address
not later than March 14, 2014, the 120th calendar day prior to the first anniversary of the immediately preceding year&rsquo;s
annual meeting of stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">Pursuant
to Lakeland&rsquo;s amended and restated bylaws, in order for a stockholder to bring a proposal before, or make a nomination at,
the 2014 Annual Meeting, such stockholder must deliver a written notice of such proposal and/or nomination to, or it must be mailed
and received by, Lakeland&rsquo;s Corporate Secretary at the principal executive offices of Lakeland located at 701 Koehler Avenue,
Suite 7, Ronkonkoma, New York 11779, no earlier than the close of business on February 12, 2014, the 150<SUP>th</SUP> calendar
day, prior to the first anniversary of the immediately preceding year&rsquo;s annual meeting of stockholders, and not later than
the close of business on March 14, 2014, the 120<SUP>th</SUP> calendar day prior to the first anniversary of the immediately preceding
year&rsquo;s annual meeting of stockholders. Stockholders are also advised to review Lakeland&rsquo;s amended and restated bylaws,
as they may be amended from time to time, for additional requirements and deadlines applicable to the submission of stockholder
proposals, including, but not limited to, proposals relating to the nomination of one or more candidates for election to the Lakeland
Board of Directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">ADVISORY
VOTE ON NAMED EXECUTIVE OFFICER COMPENSATION</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps; color: Black"><B>(Item
3 on the Proxy Card)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">The Board is
committed to excellence in governance. As part of that commitment, as required by Section 14A of the Securities Exchange Act of
1934, the Board is providing our stockholders with an opportunity to vote to approve, on an advisory basis, named executive officer
compensation, which is commonly known as &ldquo;say-on-pay. We are holding the say-on-pay vote in connection with our 2013 Annual
Meeting of Stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">We are asking
our stockholders to indicate their support for the compensation of our named executive officers as described in this proxy statement.
This vote is not intended to address any specific item of compensation, but rather to overall compensation of our named executive
officers and the executive compensation program and practices described in this proxy statement. Please read the Executive Compensation
Overview and the Executive Compensation Tables and Narrative to Summary Compensation Table for a detailed explanation of our executive
compensation program and practices.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&ldquo;<B>RESOLVED</B>&rdquo;,
that the compensation of the named executive officers as disclosed pursuant to the compensation disclosure rules of the SEC, including
the Executive Officer Compensation Overview and the Executive Compensation Tables and Narrative to Summary Compensation Table
and any other related material disclosed in this proxy statement, is hereby approved on an advisory basis.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">As an advisory
vote, this proposal is not binding on Lakeland. However, the Compensation Committee of our Board, which is responsible for designing
and administering our executive compensation program and practices, values the opinions expressed by stockholders in their vote
on this proposal, and will consider the outcome of the vote when making future compensation decisions for named executive officers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>YOUR BOARD
UNANIMOUSLY RECOMMENDS A VOTE &ldquo;FOR&rdquo; THIS PROPOSAL</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">FREQUENCY
OF ADVISORY VOTE REGARDING EXECUTIVE COMPENSATION</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">(Item 4 on the
Proxy Card)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">Lakeland is
seeking an advisory vote on the frequency with which say-on-pay votes, similar to Proposal 3 in this Proxy Statement, should be
held in the future. The advisory vote is commonly referred to as &ldquo;say on frequency.&rdquo; By voting on this Proposal 4,
stockholders may indicate whether they prefer an advisory vote on the compensation of our named executive officers every one,
two, or three years.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">After careful
consideration of this Proposal, our Board of Directors has determined that an advisory vote on executive compensation that occurs
every three years is the most appropriate alternative for our Company and, therefore, our Board of Directors recommends that you
support a frequency period of every three years for the advisory vote on executive compensation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">Stockholders
are not voting to approve or disapprove of the Board&rsquo;s recommendation. Instead, stockholders have four choices with respect
to this proposal: one year, two years, three years or abstaining from voting on the proposal. While this vote is advisory and
non-binding in nature, it is the intention of the Board of Directors to give careful consideration to the frequency desired by
our stockholders as expressed by their vote on this Proposal before determining the action the Board deems most appropriate for
Lakeland and its stockholders.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black"><B>YOUR BOARD
UNANIMOUSLY RECOMMENDS A VOTE FOR A &ldquo;THREE YEAR&rdquo; FREQUENCY OF FUTURE ADVISORY VOTES ON THE COMPENSATION OF EXECUTIVE
OFFICERS</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">OTHER MATTERS</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">The
Board of Directors knows of no matters other than those described above that have been submitted for consideration at this Annual
Meeting. As to other matters, if any, that properly may come before the Annual Meeting, the Board of Directors intends that the
proxy cards will be voted in respect thereof in accordance with the judgment of the person or persons named thereon.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">QUESTIONS?</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="color: Black">For
information about your record holding, call Registrar and Transfer at (800) 368-5948. We also invite you to visit Lakelands&rsquo;
Internet site at <U>www.Lakeland.com</U>, under the headings Financial Information&ndash;All SEC filings. Internet site materials
are for your general information and are not part of this proxy solicitation. If your shares are held by your broker or bank as
a nominee or agent, you should follow the instructions provided by your broker or bank.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">If you have
questions or need more information about the annual meeting write to be address below. Any written notice of revocation, or later
dated proxy card, should be delivered to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6.6pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Black">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: Black">Lakeland
Industries, Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: Black">701
Koehler Avenue, Suite 7</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: Black">Ronkonkoma,
New York 11779</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: Black">Attention:
Christopher J. Ryan, Secretary</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="color: Black">Lakeland makes
available, free of charge on its website, all of its filings that are made electronically with the Securities and Exchange Commission
(&ldquo;SEC&rdquo;), including Forms 10-K, 10-Q and 8-K. These filings are also available on the SEC&rsquo;s website (<U>www.sec.gov</U>).
To access these filings, go to our website (<U>www.lakeland.com</U>) and click on the heading Financial Information&ndash;All
SEC filings. Copies of Lakeland&rsquo;s Annual Report on Form 10-K for the fiscal year ended January 31, 2013, including financial
statements and schedules thereto, filed with the SEC, are also available without charge to stockholders upon written request addressed
to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: Black">Christopher
J. Ryan, Secretary</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: Black">President,
Chief Executive Officer and Secretary</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: Black">Lakeland
Industries, Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: Black">701
Koehler Avenue, Suite 7</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: Black">Ronkonkoma,
New York 11779</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: Black">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="width: 40%"><FONT STYLE="color: Black">By Order of the Board of Directors,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><IMG SRC="tsig.jpg" ALT="Z:\Vineyard\Live jobs\2013\05 May\21 May\Shift III\Lakeland Industries DEF 14A (v345899)\Draft\03-Production"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">Christopher J. Ryan</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD><FONT STYLE="color: Black">Corporate Secretary</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">May 20, 2013</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">Ronkonkoma, New York</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="color: Black">&nbsp;</FONT></P>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
