EXHIBIT 10.5
February 1, 2006
Mr. Harvey Pride, Jr.
202 Pride Lane
Decatur, AL 35603
Dear Mr. Pride:
The purpose of this letter is to confirm your employment with
Lakeland
Industries, Inc. on the following terms and conditions:
1. THE
PARTIES
-----------
This is an agreement between Harvey Pride, Jr. (hereinafter
referred to as
"you") and Lakeland Industries, Inc., a Delaware corporation with
principal
place of business located at 701-7 Koehler Avenue, Ronkonkoma, NY
11779-7410
(hereinafter the "Company").
2. TERM;
RENEWAL
-------------
The term of the agreement shall be for a 2 year period from
February 1, 2006
through and including February 1, 2008.
3.
CAPACITY
--------
You shall be employed in the capacity of Vice President of
Manufacturing of
Lakeland Industries, Inc. and such other title or titles as may
from time to
time be determined by the Board of Directors of the Company.
You agree to devote your full time and attention and best efforts
to the
faithful and diligent performance of your duties to the Company and
shall serve
and further the best interests and enhance the reputation of the
Company to the
best of your ability.
4.
COMPENSATION
------------
As full compensation for your services you shall receive the
following from the
Company:
a.
A base
annual salary of $220,000.00 per year payable bi-weekly; and
b.
Participation when eligible in any of the Company's Pension,
Profit
Sharing, Disability and 401 (K) plans when any such plans have
or
become effective:
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c.
Such other
benefits as are consistent with the personnel benefits
provided by the Company to its officers and employees; provided
however that your vacation shall be for a period of no more than
20
business days; and
d.
An
adjustment in the way car allowances or leases are paid which
will require a gross up in W-2 wages of $9,000 covering all
vehicle
expenses except fuel.
e.
An annual
bonus payable May 25, 2007 as set forth in this agreement:
1. Within year one of this contract you shall decrease
identifiable
expenses of Lakeland de Mexico by $150,000 as verified by us
internal and outside accountants. For this you shall receive a
bonus
of $20,000. For anything under $150,000 you shall receive 10% of
the
savings and for anything over $150,000 you shall receive 15% of
the
savings up to a maximum of $50,000. This shall apply to reducing
the
cost of fabrics or components purchased, Mexican services
purchased,
reducing Mexican labor inefficiencies or redundancies, rents,
supplies, transportation costs or other fixed and identifiable
costs. The committee would expect that you would visit Mexico
personally at least 4 times a year to insure that Mexico reduces
its
costs and achieves profitability. The Compensation Committee
shall
have full discretion and the final say on the determination of
the
bonus amount based upon the cost savings analysis submitted.
a. The same formula for Mexico shall apply to year 2 of the
contract.
b. Such actions as increasing Parent payments on Mexican
Products or moving labor from Mexico to China would not be
considered as cost reductions.
2. Improving customer ship dates will be measured and weighed on
a
discretionary basis at year end and approximately $5,000 of the
year
end bonus will be allocated at the Board's discretion based upon
the
percent improvement of product shipped on time as compared to
fiscal
2006 from the Decatur facility.
3. The remainder of up to $25,000 will be based upon your
achievements as determined by the Board in reducing costs and
other
activities that directly increase profits on out bound and in
bound
freight, lowering labor costs at the Decatur facility and
increasing
Uniland productivity and profits.
4. No later than May 25, 2007 #1-3 will be evaluated and bonus
awarded and similar goals will be implemented for you for the
fiscal
year 2/1/07 - 1/31/08.
5.
NON-C
