LEASE AGREEMENT

In the autonomous City of Buenos Aires, on the day 19 of the month of August, 2009, between ACRILICOS PALOPOLI S.A., company which address is Avda. Gral. Roca 4250 de Florida, Pdo. De Vicente López, Pcia. De Buenos Aires, represented in this act by its legal representative, Mr. Ariel Ricardo PALOPOLI, Argentinean, ID# 25.044.694, in accordance with the attached power of attorney (Exhibit “A”), hereinafter “ THE LESSOR ”, in one hand; and in the other hand, LAKELAND ARGENTINA SRL (incorporation pending),  represented in this act by its manager partner AGUSTINA CENDALI DE BYER ID# 24.069.380, which address is Corrientes No. 1(not legible) 86 piso 13 Capital Federal hereinafter “ THE LESSEE ”,  and collectively LESSOR and LESSEE called the PARTIES, agree in entering into this LEASE AGREEMENT under the following terms:

FIRST:   The LESSOR , hereby lets to the Lessee, the functional unit No. 110 with a surface of 820 m2 composed of a storehouse and offices located within a bigger property, owned by the LESSOR, which name is Centro Industrial y Comercial Florida Oeste, located at Avda. Gral. Roca No. 4250 between C.M. de Alvear and William Morris, Florida, Pdo. De Vicente López, Pcia de Buenos Aires, intended for business and industrial development, functional unit which shall be called THE PROPERTY and that arises from the sketch signed in counterparts and that is attached to this agreement made part of it (Exhibit “B”).  The property is released by this act to the satisfaction of the LESSEE as per the asset inventory that the parties sign along with this (Exhibit “D”).

SECOND: Both parties consent to this contract within the following context: a) the guaranty granted by the National State (Law 21342, Article 6) regarding the establishment of freedom of contract in rental matters, b) the application of the Civil code in its current version (Law 21342, Article 29) whose rules the parties submit as a matter of suppletory law, only for all points not expressly regulated by this agreement, that without prejudice to respect the mandatory regulations of Laws 23091, modified by Law 25.561 and 25628, c) the current uncertainty regarding the future acquisitive value  of Argentinean currency combined with the prohibition of any kind of default currency actualization  (Law 23928, Art. 7 modified by Law 25.561).

THIRD: This contract has a length or term of thirty six (36) months, being valid from August 19, 2009, expiring on August 18, 2012 necessarily, in which date this contract shall be automatically expired with no need of any notification but this, being the LESSEE required to return the property to the LESSOR or its representative at its end, free of goods, occupants and/or intruders, letting the LESSOR off the obligation to perform the requirements foreseen in Arts. 1604, 1610, 1622 and cites of the Civil Code.  The failing to do so, without prejudice of eviction that the LESSOR could demand plus the payment for damages, costs and fees that might be granted; for each day that the LESSEE exceeds the occupation of the property, besides the corresponding rent, shall indemnify with a daily fine of one percent (1%) of the corresponding lease at that time, for each day that improperly pass in the property and until the effective reception of the property by the LESSOR .- The anticipated termination shall be governed by Law No. 23.091, Art. 8.-

FOURTH:   The LESSEE states she knows the Internal Use Regulation of the Florida Oeste Industrial Park, attached to this agreement as (Exhibit “C”), agreeing to comply with it, receiving in this act a complete copy of the Regulation.  The Parties would be able to agree the extension of the term of this contract at its expiration, for a term equivalent to the original or another term agreed at that time, having the LESSEE, in such case, to communicate the LESSOR about such intention within 60 (sixty) natural days before the expiration of the contract by any reliable means, having the LESSOR to express its decision within the same granted term.  In such case, the clauses of the original contract shall prevail without prejudice of the variation that could be verified in the lease amount as per the mechanism provided in clause twenty nine of this contract.

FIFTH: In the case the LESSOR continues receiving the lease after the expiration of the contractual term, either incremented, and any the raise would be, that shall not be constructed as novation or renewal, being both parties able to terminate the lease after the expiration of the term by which the rent had been charged.  The termination of the lease should be justified by a written letter sent by any of the parties requesting the early termination or notifying the ending of the lease term without the intention to extend it.  In all the cases the lease, complementary benefits and, if applicable, the corresponding fines shall continue until the property is truly reinstated to the LESSOR and to the extend it is in the agreed conditions.

SIXTH: The LESSEE could be able to terminate unilaterally this contract, with a previous notice, sent by reliable means, of no less than 60 (sixty) days, strictly adhering to Law 23091, art. 8, regarding terms of effectiveness, previous notification and indemnity amounts.

SEVENTH: The monthly amount to be paid shall be ELEVEN THOUSAND FIVE HUNDRED PESOS plus VAT ($11,500 plus VAT) also charging to the LESSEE in the amount of rent the payment to the LESSOR of the proportional part corresponding to the LESSEE regarding the monthly taxes for municipal services on the property by the Vicente Lopez Municipality, or the corresponding municipality to the property, in a 3% proportion of the total amount.   The local property tax perceived by the Provincial Revenue Office of Buenos Aires shall be paid by the LESSEE in a 3% proportion corresponding to it as well as the Aguas Argentinas’ services, in a 3% proportion corresponding to it for the occupied surface, all of which is paid every month within the expenses payment.  Any other direct or indirect tax created in the future and applied to the amount of rent agreed in this contract, that shall be notified by reliable means to the LESSEE, shall be added as per its aliquot resulting from the rent amount and its payment shall be paid by the LESSEE, integrating such tax the payment of the monthly rent starting from the date of its legal enforceability.  The Value Added Tax that eventually affects the rent or the obligations assumed towards the LESSOR shall be supported by the LESSEE.

EIGHTH: The rent is agreed by entire month and shall be paid in advance from the 1 ^st to the 10° day of each month, in the address of the Business Center, located in Ave. Gral Roca 4250 de Florida, Pcia de Buenos Aires, upon receipt of invoice by bi-annual periods and receipt for such purpose, or as duly indicated by the LESSOR, within the Federal Capital, therefore the LESSOR is not obliged to receive or return money for fraction of month.- The payment shall be by-annual, through six checks issued at the day 30, 60, 90, 120 and 150.  The LESSOR expressly authorizes to ARIEL PALOPOLI (ID# 25.044.694), ELISA MONICA SPINELLI (ID# 13214065) and/or RAUL ALBERTO ALCALDE (ID# 12.599.982) to receive the rent on its behalf and upon its orders.  Debt shall become delinquent by operation of law, without need to notify after the day 10° of each month.- If the payment is not done on time, the LESSEE should paid by ways of fine the amount resulting from adding the monthly rate of 3% to the rent.

NINTH: This contract is not transferable under any circumstance, either partially nor totally, temporary or free or charge, and it is stated that the LESSEE cannot be able to assign, transfer and/or sub-lease the leased property; and it shall use the property as business premises for the manufacturing, sales, consignation, commission, representation, distribution, import and export of clothing, footwear, objects, machines, tools and all kind of products and devices to be used as industrial safety and protection attire, personal, sport, cleaning and fire,  high rise, low and high temperatures, etc. and derivatives, and storehouse of goods related to its line of business, and agrees to use it as per the rules stipulated  by the Municipality of Vicente Lopez, or the corresponding  municipality for the property and premises of that kind that it states to know and undertakes to: a) do not commit any action that threaten the moral and/or good customs; b) do not deny the access to the premises to the LESSOR or its representatives to check on the occupation status and/or preservation of the property and to perform any repair on  it.  In the case that the LESSOR intends to exert its access right to the leased functional unit it should give a previous notification with at least seventy two (72) hours in advance to the LESSEE.  The LESSOR expressly authorizes the LESSEE to store goods and dangerous devices, having, in the case of storage of sprays or similar products, to adopt the necessary safety measures and to comply with the current municipal regulations for the storage of this kind of goods.  The LESSEE shall have free and unrestricted access to the premises of the Centro Industrial y Comercial Florida Oeste, the seven (7) days of the week,  and the twenty four (24) hours of the day.  The LESSEE undertakes to contract a general and third party liability insurance on the building in its PROPERTY’s surface in anticipation to losses and fire, with policy endorsed to the LESSOR that covers all foreseeing contingencies over persons, assets and goods existing in the storehouse, assuming the LESSEE the risk for the handling of the goods stored in the premises.  The lack of compliance of this clause shall be considered as a violation of this contract.  In this vein it agrees to do not sell, promote or commercialize any product of direct or indirect competition for the products commercialized by Acrilicos Polopoli S.A. or PALOPOLI (elements and supplies for the visual communication industry), which it declares to know to date, and that the same are out of its trading practice.  Nevertheless the LESSOR accepts that the LESSEE commercializes safety attires