Document:

Committed Line of Credit Note  

(Daily LIBOR) 

 

	$60,000,000.00 	November 5, 2013 

 

FOR VALUE RECEIVED, WEYCO GROUP, INC., a Wisconsin
corporation (the “Borrower”), with an address at 333 West Estabrook Boulevard, Glendale, Wisconsin 53212, promises
to pay to the order of PNC BANK, NATIONAL ASSOCIATION (the “Bank”), in lawful money of the United States
of America in immediately available funds at its offices located at 411 East Wisconsin Avenue, Suite 1400, Milwaukee, Wisconsin
53202, or at such other location as the Bank may designate from time to time, the principal sum of SIXTY MILLION AND 00/100
DOLLARS ($60,000,000.00) (the “Facility”) or such lesser amount as may be advanced to or for the
benefit of the Borrower hereunder, together with interest accruing on the outstanding principal balance from the date hereof, all
as provided below.

 

1. Advances. The Borrower
may borrow, repay and reborrow hereunder until the Expiration Date, subject to the terms and conditions of this Note and the Loan
Documents (as defined herein). The “Expiration Date” shall mean November 5, 2014, or such later date
as may be designated by the Bank by written notice from the Bank to the Borrower. The Borrower acknowledges and agrees that in
no event will the Bank be under any obligation to extend or renew the Facility or this Note beyond the Expiration Date. In no
event shall the aggregate unpaid principal amount of advances under this Note exceed the face amount of this Note.

 

2. Rate of Interest. Amounts outstanding under
this Note will bear interest at a rate per annum which is at all times equal to (A) the Daily LIBOR Rate plus (B) seventy-five
(75) basis points (0.75%). Interest hereunder will be calculated based on the actual number of days that principal is outstanding
over a year of 360 days. In no event will the rate of interest hereunder exceed the maximum rate allowed by law.

 

If the Bank determines (which determination shall be final and
conclusive) that, by reason of circumstances affecting the eurodollar market generally, deposits in dollars (in the applicable
amounts) are not being offered to banks in the eurodollar market for the selected term, or adequate means do not exist for ascertaining
the Daily LIBOR Rate, then the Bank shall give notice thereof to the Borrower. Thereafter, until the Bank notifies the Borrower
that the circumstances giving rise to such suspension no longer exist, the interest rate for all amounts outstanding under this
Note shall be equal to the Base Rate (the “Alternate Rate”).

 

In addition, if, after the date of this Note, the Bank shall
determine (which determination shall be final and conclusive) that any enactment, promulgation or adoption of or any change in
any applicable law, rule or regulation, or any change in the interpretation or administration thereof by a governmental authority,
central bank or comparable agency charged with the interpretation or administration thereof, or compliance by the Bank with any
guideline, request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency
shall make it unlawful or impossible for the Bank to make or maintain or fund loans based on the Daily LIBOR Rate, the Bank shall
notify the Borrower. Upon receipt of such notice, until the Bank notifies the Borrower that the circumstances giving rise to such
determination no longer apply, the interest rate on all amounts outstanding under this Note shall be the Alternate Rate.

 

For purposes hereof, the following terms shall have the following
meanings:

 

    	 		Form 8C – WI (NCOJ) Rev. 8/12

    	 

    

 

“Base
Rate” shall mean the higher of (A) the Prime Rate, and (B) the sum of the Federal Funds Open Rate plus fifty
(50) basis points (0.50%). If and when the Base Rate (or any component thereof) changes, the rate of interest with respect to
any amounts hereunder to which the Base Rate applies will change automatically without notice to the Borrower, effective on the
date of any such change.

 

“Business Day” shall mean any day other than
a Saturday or Sunday or a legal holiday on which commercial banks are authorized or required by law to be closed for business in
Milwaukee, Wisconsin.

 

“Daily
LIBOR Rate” shall mean, for any day, the rate per annum determined by the Bank by dividing (A) the Published Rate by
(B) a number equal to 1.00 minus the percentage prescribed by the Federal Reserve for determining the maximum reserve requirements
with respect to any eurocurrency fundings by banks on such day. The rate of interest will be adjusted automatically as of each
Business Day based on changes in the Daily LIBOR Rate without notice to the Borrower.

 

“Federal Funds Open Rate” shall mean, for
any day, the rate per annum (based on a year of 360 days and actual days elapsed) which is the daily federal funds open rate as
quoted by ICAP North America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM for that day opposite the caption
“OPEN” (or on such other substitute Bloomberg Screen that displays such rate), or as set forth on such other recognized
electronic source used for the purpose of displaying such rate as selected by the Bank (an “Alternate Source”)
(or if such rate for such day does not appear on the Bloomberg Screen BTMM (or any substitute screen) or on any Alternate Source,
or if there shall at any time, for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute screen) or any Alternate
Source, a comparable replacement rate determined by the Bank at such time (which determination shall be conclusive absent manifest
error); provided however, that if such day is not a Business Day, the Federal Funds Open Rate for such day shall be the “open”
rate on the immediately preceding Business Day. The rate of interest charged shall be adjusted as of each Business Day based on
changes in the Federal Funds Open Rate without notice to the Borrower.

 

“Prime Rate” shall mean the rate publicly
announced by the Bank from time to time as its prime rate. The Prime Rate is determined from time to time by the Bank as a means
of pricing some loans to its borrowers. The Prime Rate is not tied to any external rate of interest or index, and does not necessarily
reflect the lowest rate of interest actually charged by the Bank to any particular class or category of customers.

 

“Published Rate” shall mean the rate of interest
published each Business Day in the Wall Street Journal “Money Rates” listing under the caption “London Interbank
Offered Rates” for a one month period (or, if no such rate is published therein for any reason, then the Published Rate shall
be the eurodollar rate for a one month period as published in another publication selected by the Bank).

 

3. Advance Procedures. If permitted by the Bank,
a request for advance may be made by telephone or electronic mail, with such confirmation or verification (if any) as the Bank
may require in its discretion from time to time. A request for advance by any Borrower shall be binding upon Borrower, jointly
and severally. The Borrower authorizes the Bank to accept telephonic and electronic requests for advances, and the Bank shall be
entitled to rely upon the authority of any person providing such instructions. The Borrower hereby indemnifies and holds the Bank
harmless from and against any and all damages, losses, liabilities, costs and expenses (including reasonable attorneys’ fees
and expenses) which may arise or be created by the acceptance of such telephonic and electronic requests or by the making of such
advances. The Bank will enter on its books and records, which entry when made will be presumed correct, the date and amount of
each advance, as well as the date and amount of each payment made by the Borrower.

 

4. Payment Terms. Accrued
interest will be due and payable on the first (1st) day of each month. The outstanding principal balance and any accrued
but unpaid interest shall be due and payable on the Expiration Date.

 

 

    	 	- 2 -	Form 8C - WI (NCOJ) Rev. 8/12
                                                                                                                                                                                                                                                                                                                                                            

    	 

    

 

If any payment under this Note shall become due on a day other
than a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included
in computing interest in connection with such payment. The Borrower hereby authorizes the Bank to charge the Borrower’s deposit
account at the Bank for any payment when due hereunder. If the Borrower revokes this authorization for any reason whatsoever or
fails to maintain a deposit account with the Bank which may be charged, the Bank may, at its option, upon thirty (30) days notice
to the Borrower, increase the interest rate payable by the Borrower under this Note by twenty-five (25) basis points (0.25%). Payments
received will be applied to charges, fees and expenses (including attorneys’ fees), accrued interest and principal in any
order the Bank may choose, in its sole discretion.

 

5. Late Payments; Default Rate. If the Borrower
fails to make any payment of principal, interest or other amount coming due pursuant to the provisions of this Note within fifteen
(15) calendar days of the date due and payable, the Borrower also shall pay to the Bank a late charge equal to the lesser of five
percent (5%) of the amount of such payment or $100.00 (the “Late Charge”). Such fifteen (15) day period shall
not be construed in any way to extend the due date of any such payment. Upon maturity, whether by acceleration, demand or otherwise,
and at the Bank’s option upon the occurrence of any Event of Default (as hereinafter defined) and during the continuance
thereof, amounts outstanding under this Note shall bear interest at a rate per annum (based on the actual number of days that principal
is outstanding over a year of 360 days) which shall be three percentage points (3%) in excess of the interest rate in effect from
time to time under this Note but not more than the maximum rate allowed by law (the “Default Rate”). The Default
Rate shall continue to apply whether or not judgment shall be entered on this Note. Both the Late Charge and the Default Rate are
imposed as liquidated damages for the purpose of defraying the Bank’s expenses incident to the handling of delinquent payments,
but are in addition to, and not in lieu of, the Bank’s exercise of any rights and remedies hereunder, under the other Loan
Documents or under applicable law, and any fees and expenses of any agents or attorneys which the Bank may employ. In addition,
the Default Rate reflects the increased credit risk to the Bank of carrying a loan that is in default. The Borrower agrees that
the Late Charge and Default Rate are reasonable forecasts of just compensation for anticipated and actual harm incurred by the
Bank, and that the actual harm incurred by the Bank cannot be estimated with certainty and without difficulty.

 

6. Prepayment. The indebtedness evidenced by
this Note may be prepaid in whole or in part at any time without penalty.

 

7. Increased Costs; Yield Protection. On written
demand, together with written evidence of the justification therefor, the Borrower agrees to pay the Bank all direct costs incurred,
any losses suffered or payments made by the Bank as a result of any Change in Law (hereinafter defined), imposing any reserve,
deposit, allocation of capital or similar requirement (including without limitation, Regulation D of the Board of Governors of
the Federal Reserve System) on the Bank, its holding company or any of their respective assets relative to the Facility. “Change
in Law” means the occurrence, after the date of this Note, of any of the following: (a) the adoption or taking effect
of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation,
implementation or application thereof by any governmental authority or (c) the making or issuance of any request, rule, guideline
or directive (whether or not having the force of law) by any governmental authority; provided that notwithstanding anything herein
to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives
thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for
International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States
or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”,
regardless of the date enacted, adopted or issued.

 

8. Other Loan Documents. This Note is issued
in connection with a Loan Agreement between the Borrower and the Bank, dated on or before the date hereof, and the other agreements
and documents executed and/or delivered in connection therewith or referred to therein, the terms of which are incorporated herein
by reference (as amended, modified or renewed from time to time, collectively the “Loan Documents”), and is
secured by the property (if any) described in the Loan Documents and by such other collateral as previously may have been or may
in the future be granted to the Bank to secure this Note.

 

    	 	- 3 -	Form
                                                                                                                                                                                                                                                                                                                                                            8C
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                                                                                                                                                                                                                                                                                                                                                            WI
                                                                                                                                                                                                                                                                                                                                                            (NCOJ)
                                                                                                                                                                                                                                                                                                                                                            Rev.
                                                                                                                                                                                                                                                                                                                                                            8/12

    	 

    

 

 

9. Events of Default. The occurrence of any of
the following events will be deemed to be an “Event of Default” under this Note: (i) the nonpayment of any principal,
interest or other indebtedness under this Note when due; (ii) the occurrence of any event of default or any default and the lapse
of any notice or cure period, or any Obligor’s failure to observe or perform any covenant or other agreement, under or contained
in any Loan Document or any other document now or in the future evidencing or securing any debt, liability or obligation of any
Obligor to the Bank; (iii) the filing by or against any Obligor of any proceeding in bankruptcy, receivership, insolvency, reorganization,
liquidation, conservatorship or similar proceeding (and, in the case of any such proceeding instituted against any Obligor, such
proceeding is not dismissed or stayed within 30 days of the commencement thereof, provided that the Bank shall not be obligated
to advance additional funds hereunder during such period); (iv) any assignment by any Obligor for the benefit of creditors, or
any levy, garnishment, attachment or similar proceeding is instituted against any property of any Obligor held by or deposited
with the Bank; (v) a default with respect to any other indebtedness of any Obligor for borrowed money, if the effect of such default
is to cause or permit the acceleration of such debt; (vi) the commencement of any foreclosure or forfeiture proceeding, execution
or attachment against any collateral securing the obligations of any Obligor to the Bank; (vii) the entry of a final judgment against
any Obligor and the failure of such Obligor to discharge the judgment within ten (10) days of the entry thereof; (viii) any change
in any Obligor’s business, assets, operations, financial condition or results of operations that has or could reasonably
be expected to have any material adverse effect on any Obligor; (ix) any Obligor ceases doing business as a going concern; (x)
any representation or warranty made by any Obligor to the Bank in any Loan Document or any other documents now or in the future
evidencing or securing the obligations of any Obligor to the Bank, is false, erroneous or misleading in any material respect; (xi)
if this Note or any guarantee executed by any Obligor is secured, the failure of any Obligor to provide the Bank with additional
collateral if in the Bank’s opinion at any time or times, the market value of any of the collateral securing this Note or
any guarantee has depreciated below that required pursuant to the Loan Documents or, if no specific value is so required, then
in an amount deemed material by the Bank; (xii) the revocation or attempted revocation, in whole or in part, of any guarantee by
any Obligor; or (xiii) the death, incarceration, indictment or legal incompetency of any individual Obligor or, if any Obligor
is a partnership or limited liability company, the death, incarceration, indictment or legal incompetency of any individual general
partner or member. As used herein, the term “Obligor” means any Borrower and any guarantor of, or any pledgor,
mortgagor or other person or entity providing collateral support for, the Borrower’s obligations to the Bank existing on
the date of this Note or arising in the future.

 

Upon the occurrence of an Event of Default: (a) the Bank shall
be under no further obligation to make advances hereunder; (b) if an Event of Default specified in clause (iii) or (iv) above shall
occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder
shall be immediately due and payable without demand or notice of any kind; (c) if any other Event of Default shall occur, the outstanding
principal balance and accrued interest hereunder together with any additional amounts payable hereunder, at the Bank’s option
and without demand or notice of any kind, may be accelerated and become immediately due and payable; (d) at the Bank’s option,
this Note will bear interest at the Default Rate from the date of the occurrence of the Event of Default; and (e) the Bank may
exercise from time to time any of the rights and remedies available under the Loan Documents or under applicable law.

 

10. Right of Setoff. In addition to all liens
upon and rights of setoff against the Borrower’s money, securities or other property given to the Bank by law, the Bank
shall have, with respect to the Borrower’s obligations to the Bank under this Note and to the extent permitted by law, a
contractual possessory security interest in and a contractual right of setoff against, and the Borrower hereby grants the Bank
a security interest in, and hereby assigns, conveys, delivers, pledges and transfers to the Bank, all of the Borrower’s
right, title and interest in and to, all of the Borrower’s deposits, moneys, securities and other property now or hereafter
in the possession of or on deposit with, or in transit to, the Bank or any other direct or indirect subsidiary of The PNC Financial
Services Group, Inc., whether held in a general or special account or deposit, whether held jointly with someone else, or whether
held for safekeeping or otherwise, excluding, however, all IRA, Keogh, and trust accounts. Every such security interest and right
of setoff may be exercised without demand upon or notice to the Borrower. Every such right of setoff shall be deemed to have been
exercised immediately upon the occurrence of an Event of Default hereunder without any action of the Bank, although the Bank may
enter such setoff on its books and records at a later time.

 

    	 	- 4 -	Form
                                                                                                                                                                                                                                                                                                                                                            8C –
                                                                                                                                                                                                                                                                                                                                                            WI
                                                                                                                                                                                                                                                                                                                                                            (NCOJ)
                                                                                                                                                                                                                                                                                                                                                            Rev.
                                                                                                                                                                                                                                                                                                                                                            8/12

    	 

    

 

11. Anti-Money Laundering/International Trade Law Compliance. The Borrower represents and warrants to the Bank, as of the date of this Note, the date of each advance of proceeds under
the Facility, the date of any renewal, extension or modification of the Facility, and at all times until the Facility has been
terminated and all amounts thereunder have been indefeasibly paid in full, that: (a) no Covered Entity (i) is a Sanctioned Person;
(ii) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person; or (iii) does
business in or with, or derives any of its operating income from investments in or transactions with, any Sanctioned Country or
Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority; (b) the proceeds
of the Facility will not be used to fund any operations in, finance any investments or activities in, or, make any payments to,
a Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority;
(c) the funds used to repay the Facility are not derived from any unlawful activity; and (d) each Covered Entity is in compliance
with, and no Covered Entity engages in any dealings or transactions prohibited by, any laws of the United States, including but
not limited to any Anti-Terrorism Laws. Borrower covenants and agrees that it shall immediately notify the Bank in writing upon
the occurrence of a Reportable Compliance Event.

 

As
used herein: “Anti-Terrorism Laws” means any laws relating to terrorism, trade sanctions programs and embargoes,
import/export licensing, money laundering, or bribery, all as amended, supplemented or replaced from time to time; “Compliance
Authority” means each and all of the (a) U.S. Treasury Department/Office of Foreign Assets Control, (b) U.S. Treasury
Department/Financial Crimes Enforcement Network, (c) U.S. State Department/Directorate of Defense Trade Controls, (d) U.S. Commerce
Department/Bureau of Industry and Security, (e) U.S. Internal Revenue Service, (f) U.S. Justice Department, and (g) U.S. Securities
and Exchange Commission; “Covered Entity” means the Borrower, its affiliates and subsidiaries, all guarantors,
pledgors of collateral, all owners of the foregoing, and all brokers or other agents of the Borrower acting in any capacity in
connection with the Facility; “Reportable Compliance Event” means that any Covered Entity becomes a Sanctioned
Person, or is indicted, arraigned, investigated or custodially detained, or receives an inquiry from regulatory or law enforcement
officials, in connection with any Anti-Terrorism Law or any predicate crime to any Anti-Terrorism Law, or self-discovers facts
or circumstances implicating any aspect of its operations with the actual or possible violation of any Anti-Terrorism Law; “Sanctioned
Country” means a country subject to a sanctions program maintained by any Compliance Authority; and “Sanctioned
Person” means any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated,
prohibited, sanctioned or debarred person or entity, or subject to any limitations or prohibitions (including but not limited
to the blocking of property or rejection of transactions), under any order or directive of any Compliance Authority or otherwise
subject to, or specially designated under, any sanctions program maintained by any Compliance Authority.

 

12. Indemnity. The Borrower agrees to indemnify
each of the Bank, each legal entity, if any, who controls, is controlled by or is under common control with the Bank, and each
of their respective directors, officers and employees (the “Indemnified Parties”), and to defend and hold each
Indemnified Party harmless from and against any and all claims, damages, losses, liabilities and expenses (including all fees
and charges of internal or external counsel with whom any Indemnified Party may consult and all expenses of litigation and preparation
therefor) which any Indemnified Party may incur or which may be asserted against any Indemnified Party by any person, entity or
governmental authority (including any person or entity claiming derivatively on behalf of the Borrower), in connection with or
arising out of or relating to the matters referred to in this Note or in the other Loan Documents or the use of any advance hereunder,
whether (a) arising from or incurred in connection with any breach of a representation, warranty or covenant by the Borrower,
or (b) arising out of or resulting from any suit, action, claim, proceeding or governmental investigation, pending or threatened,
whether based on statute, regulation or order, or tort, or contract or otherwise, before any court or governmental authority;
provided, however, that the foregoing indemnity agreement shall not apply to any claims, damages, losses, liabilities
and expenses solely attributable to an Indemnified Party's gross negligence or willful misconduct. The indemnity agreement contained
in this Section shall survive the termination of this Note, payment of any advance hereunder and the assignment of any rights
hereunder. The Borrower may participate at its expense in the defense of any such action or claim.

 

 

    	 	- 5 -	Form
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                                                                                                                                                                                                                                                                                                                                                            (NCOJ)
                                                                                                                                                                                                                                                                                                                                                            Rev.
                                                                                                                                                                                                                                                                                                                                                            8/12

    	 

    

  

13. Miscellaneous. All notices, demands, requests,
consents, approvals and other communications required or permitted hereunder (“Notices”) must be in writing
(except as may be agreed otherwise above with respect to borrowing requests) and will be effective upon receipt. Notices may be
given in any manner to which the parties may separately agree, including electronic mail. Without limiting the foregoing, first-class
mail, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for giving Notices. Regardless
of the manner in which provided, Notices may be sent to a party’s address as set forth above or to such other address as
any party may give to the other for such purpose in accordance with this paragraph. No delay or omission on the Bank’s part
to exercise any right or power arising hereunder will impair any such right or power or be considered a waiver of any such right
or power, nor will the Bank’s action or inaction impair any such right or power. The Bank’s rights and remedies hereunder
are cumulative and not exclusive of any other rights or remedies which the Bank may have under other agreements, at law or in equity.
No modification, amendment or waiver of, or consent to any departure by the Borrower from, any provision of this Note will be effective
unless made in a writing signed by the Bank, and then such waiver or consent shall be effective only in the specific instance and
for the purpose for which given. Notwithstanding the foregoing, the Bank may modify this Note for the purposes of completing missing
content or correcting erroneous content, without the need for a written amendment, provided that the Bank shall send a copy of
any such modification to the Borrower (which notice may be given by electronic mail). The Borrower agrees to pay on demand, to
the extent permitted by law, all costs and expenses incurred by the Bank in the enforcement of its rights in this Note and in any
security therefor, including without limitation reasonable fees and expenses of the Bank’s counsel. If any provision of this
Note is found to be invalid, illegal or unenforceable in any respect by a court, all the other provisions of this Note will remain
in full force and effect. The Borrower and all other makers and indorsers of this Note hereby forever waive presentment, protest,
notice of dishonor and notice of non-payment. The Borrower also waives all defenses based on suretyship or impairment of collateral.
If this Note is executed by more than one Borrower, the obligations of such persons or entities hereunder will be joint and several.
This Note shall bind the Borrower and its heirs, executors, administrators, successors and assigns, and the benefits hereof shall
inure to the benefit of the Bank and its successors and assigns; provided, however, that the Borrower may not assign
this Note in whole or in part without the Bank’s written consent and the Bank at any time may assign this Note in whole or
in part.

 

This Note has been delivered to and accepted
by the Bank and will be deemed to be made in the State where the Bank’s office indicated above is located. THIS
NOTE WILL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE BANK AND THE BORROWER DETERMINED IN ACCORDANCE WITH THE LAWS OF
THE STATE WHERE THE BANK’S OFFICE INDICATED ABOVE IS LOCATED, EXCLUDING ITS CONFLICT OF LAWS RULES. The
Borrower hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in the county or judicial district
where the Bank’s office indicated above is located; provided that nothing contained in this Note will prevent the Bank from
bringing any action, enforcing any award or judgment or exercising any rights against the Borrower individually, against any security
or against any property of the Borrower within any other county, state or other foreign or domestic jurisdiction. The Borrower
acknowledges and agrees that the venue provided above is the most convenient forum for both the Bank and the Borrower. The Borrower
waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Note.

 

14. Commercial Purpose. The
Borrower represents that the indebtedness evidenced by this Note is being incurred by the Borrower solely for the purpose of acquiring
or carrying on a business, professional or commercial activity, and not for personal, family or household purposes.

 

15. USA PATRIOT Act Notice.
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions
to obtain, verify and record information that identifies each Borrower that opens an account. What this means: when the Borrower
opens an account, the Bank will ask for the business name, business address, taxpayer identifying number and other information
that will allow the Bank to identify the Borrower, such as organizational documents. For some businesses and organizations, the
Bank may also need to ask for identifying information and documentation relating to certain individuals associated with the business
or organization.

 

    	 	- 6 -	Form
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                                                                                                                                                                                                                                                                                                                                                            (NCOJ)
                                                                                                                                                                                                                                                                                                                                                            Rev.
                                                                                                                                                                                                                                                                                                                                                            8/12

    	 

    

 

 

16. Authorization to Obtain Credit
Reports. By signing below, each Borrower who is an individual provides written authorization to the Bank or its designee
(and any assignee or potential assignee hereof) to obtain the Borrower’s personal credit profile from one or more national
credit bureaus. Such authorization shall extend to obtaining a credit profile in considering this Note and subsequently for the
purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account.

 

17. Depository. The Borrower will establish and
maintain with the Bank the Borrower’s primary depository accounts. If the Borrower fails to establish and/or maintain its
primary depository accounts with the Bank, the Bank may, at its option, upon thirty (30) days notice to the Borrower, increase
the interest rate payable by the Borrower under this Note by up to 1.00 percentage points (1.00%). The Bank’s right to increase
the interest rate pursuant to this paragraph shall be in addition to any other rights or remedies the Bank may have under this
Note, all of which are hereby reserved, and shall not constitute a waiver, release or limitation upon the Bank’s exercise
of any such rights or remedies.

 

18. WAIVER OF JURY TRIAL. THE BORROWER IRREVOCABLY
WAIVES ANY AND ALL RIGHTS THE BORROWER MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO
THIS NOTE, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS NOTE OR ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS. THE BORROWER
ACKNOWLEDGES THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY. 

 

The Borrower acknowledges that it has read and understood
all the provisions of this Note, including the waiver of jury trial, and has been advised by counsel as necessary or appropriate.

 

WITNESS the due execution hereof as a document under
seal, as of the date first written above, with the intent to be legally bound hereby.

 

	 	WEYCO GROUP, INC. 	 
	 	 	 
	 	 	 	 
	 	By: 	 /S/ John Wittkowske	 
	 	 	(SEAL)	 
	 	Print Name: John Wittkowske 	 
	 	Title: Sr. VP - CFO 	 
	 	 	 	 
	 	 	 	 
	 	By: 	/S/ Judy Anderson 	 
	 	 	(SEAL)	 
	 	Print Name: Judy Anderson 	 
	 	Title: VP – Finance & Treasurer	 

 

    	 	- 7 -	Form
                                                                                                                                                                                                                                                                                                                                                            8C
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                                                                                                                                                                                                                                                                                                                                                            (NCOJ)
                                                                                                                                                                                                                                                                                                                                                            Rev.
                                                                                                                                                                                                                                                                                                                                                            8/12Exhibit 10.1

 

Form
of Amendment to Employment Agreement

 

This Amendment to Employment Agreement (this
"Amendment") dated as of July 31, 2013 ("Effective Date"), by and between PharmAthene, Inc., a Delaware
corporation ("Company") and Eric Richman ("Executive"). Executive and Company are sometimes each
referred to in this Amendment as a "Party" and collectively as the "Parties."

 

Background

 

WHEREAS, the Parties are parties to that certain
Employment Agreement dated as of December 23, 2010 (the "Employment Agreement");

 

WHEREAS, on May 9, 2012 the Board of Directors
of the Company ("Board") adopted a severance plan to provide certain benefits to our Chief Executive Officer and
certain other executive officers of the Company that applies in the event of a change of control of the Company (the "Severance
Plan");

 

WHEREAS, the Company has entered into an Agreement
and Plan of Merger (as such agreement may be amended from time to time, the "Merger Agreement") among the Company
and Theraclone Sciences, Inc. as of the date hereof pursuant to which Theraclone Sciences, Inc. will become a wholly-owned subsidiary
of the Company (the "Merger");

 

WHEREAS, the Board, pursuant to the authority
reserved in the Severance Plan, is terminating the Severance Plan effective upon the consummation of the Merger; and

 

WHEREAS, the Parties desire to clarify and
memorialize the severance benefits, if any, to which the Executive would be entitled upon termination of his employment following
the consummation of the Merger or another transaction that constitutes a change of control hereunder.

 

NOW, THEREFORE, in consideration of
the mutual promises, covenants and conditions set forth herein, the Parties, intending to be legally bound, hereby agree as follows:

 

1.             The Parties agree that Section 9b of the Employment Agreement is hereby amended effective upon consummation of the
Merger substantially in accordance with the terms of the Merger Agreement to add the following paragraph to the end thereof:

 

If the Company terminates the Executive's
Employment without Cause, Executive timely executes and does not revoke the General Release described in this Section 9b and the
Merger is consummated substantially in accordance with the terms of the Merger Agreement after the Executive's termination of employment,
Executive shall be entitled to the following additional severance benefits: (v) a lump sum payment equal to the amount of the Executive’s
base salary as in effect immediately prior to such termination (but without giving effect to any reduction in base salary that
triggered a Good Reason termination) for a period of 12 months, payable on the later of 60 days after his termination of employment
or 5 days of the date the Merger is consummated; (w) a lump sum payment equal to the excess of (I) two times the Executive’s
Target Bonus Amount as in effect immediately prior to such termination, over (II) any amount already paid pursuant to clause (iii)
above, payable on the later of 60 days after his termination of employment or 5 days of the date the Merger is consummated; (x)
each stock option that remains outstanding as of the date on which the Merger is consummated shall remain exercisable for three
years following the date of Executive ceases to perform services for the Company in any capacity (i.e., as an employee, a non-employee
director or consultant), but not later than the earlier of ten years after such option was granted or its original expiration date;
and (y) reimbursement of the portion of the Executive’s health insurance premiums as described in clause (v) above for an
additional 12 months beyond the initial 12-month period described in clause (v).

 

    	 

    	 

    

   

2.            The Parties agree that Section 9c of the Employment Agreement is hereby amended effective upon consummation of the
Merger substantially in accordance with the terms of the Merger Agreement to read as follows:

 

c.           Termination Without Cause or Termination for Good
Reason Following a Change in Control. Following a Change in Control (as defined below), if requested by the Company’s
successor or acquirer, as applicable, the Executive shall negotiate a new employment agreement in form and substance acceptable
to the Executive in all respects in his sole discretion. In the event the Company and the Executive fail to enter into such new
employment agreement within ninety (90) days of the Change in Control and during the Employment Period a Termination Without Cause
or a termination of the Executive’s employment for Good Reason occurs on or within twelve months of the consummation of the
Change in Control, the Executive shall not have any further rights or claims against the Company under this Agreement except the
right to receive (i) the payments and other rights provided for in Section 9a hereof and a lump sum cash payment for Executive’s
unused vacation at the rate of his base salary in effect immediately prior to such termination (but without giving effect to any
reduction in base salary that triggered a Good Reason termination), (ii) a lump sum payment equal to the amount of the Executive’s
base salary as in effect immediately prior to such termination (but without giving effect to any reduction in base salary that
triggered a Good Reason termination) for a period of 24 (twenty-four) months, payable within 60 days of the date of termination
(subject to Section 24), (iii) a lump sum payment equal to two times the Executive’s Target Bonus Amount as in effect immediately
prior to such termination and a payment for the prior fiscal year to the extent that bonuses have not previously been paid on or
before the date of termination (and in the case of the bonus in respect of the prior fiscal year to the extent such bonus has been
earned), payable within 60 days of the date of termination (subject to Section 24), (iv) all equity-based awards held by Executive
will be deemed fully vested as of the date of termination and each outstanding stock option shall remain exercisable for three
years following the date of Executive ceases to perform services for the Company in any capacity (i.e., as an employee, a non-employee
director or consultant), but not later than the earlier of ten years after such option was granted or its original expiration date,
(v) reimbursement of the portion of the Executive's health insurance premiums (whether such premiums are paid for COBRA continuation
coverage under the Company’s group health plan in accordance with Section 4980B of the Code or for any comparable replacement
group or individual health insurance coverage obtained by the Executive) that exceeds the amount that the Company charges its active
employees for the same level of group health coverage during the twenty-four (24) month period following the Executive's termination,
and (vi) the Excise Tax Gross-Up described in Section 9g below. Notwithstanding the foregoing, the severance benefits described
in clause (ii), (iii), (iv) and (vi) above and the health care premium reimbursement described in clause (v) above shall be provided
in consideration for, and expressly conditioned upon, the Executive’s execution of a binding General Release (which shall
be provided on or about the date of termination) containing terms reasonably satisfactory to the Company within 45 days of the
Executive’s termination of employment. Subject to Section 24, if the Executive timely executes such General Release and the
applicable revocation period with respect to such General Release lapses, the Executive will receive the severance benefits described
in clauses (ii) and (iii) above and the reimbursement for health insurance premiums paid by the Executive during the first 60 days
after his termination of employment 60 days after the Executive's termination of employment. The Excise Tax Gross-Up described
in Section 9g below will be paid in accordance with Section 9g. If the Executive does not timely execute the General Release or
if the Executive revokes the General Release within the applicable revocation period prescribed by law, the Executive shall not
be entitled to receive any severance payments.

 

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For purposes of this Section 9c, Change
of Control shall have the same meaning as that term is defined in Section 3g, except that any such transaction will not constitute
a Change of Control for this Section 9c unless it also constitutes a change in ownership of the Company within the meaning of Treasury
Regulation Section 1.409A-3(i)(5)(v), a change in effective control of the Company within the meaning of Treasury Regulation Section
1.409A-3(i)(5)(vi)(A)(1), or a change in ownership of a substantial portion of the Company's assets within the meaning of Treasury
Regulation Section 1.409A-3(i)(5)(vii).

 

3.             The Parties agree that Section 9f of the Employment Agreement is hereby amended effective upon consummation of the
Merger substantially in accordance with the terms of the Merger Agreement to read as follows:

 

f.             Rabbi
Trust. If the Executive's employment is terminated prior to a Change of Control (as defined in Section 9c above) and the
Executive becomes entitled to receive severance payments under clause (b) above, and the Executive’s General Release
described in clause (b) above becomes binding and enforceable, the Company shall establish an irrevocable grantor trust (a
"rabbi trust"), appoint a federally or state chartered bank or trust company as the trustee for such rabbi trust
and shall contribute 12 (twelve) months of salary continuation payments to such rabbi trust. Immediately upon consummation of
a Change of Control (as defined in Section 9c above) during the Employment Period, the Company shall establish a rabbi trust,
appoint a federally or state chartered bank or trust company as the trustee for such rabbi trust and shall contribute the sum
of (i) 24 (twenty-four) months of base salary as in effect immediately prior to such Change of Control, and (ii) two times
the Executive's Target Bonus Amount as in effect immediately prior to such Change of Control.

 

The assets of such rabbi trust shall be
used solely to make the severance payments to the Executive as required under this Agreement (or to reimburse the Company for severance
payments it makes to the Executive); or to satisfy the claims of the Company’s unsecured general creditors in the event of
the Company’s insolvency or bankruptcy. The rabbi trust may be terminated and any remaining assets therein shall revert to
the Company after the Executive has received all of the severance payments to which he is entitled hereunder. Notwithstanding the
foregoing, the provisions of this Section 9f shall not apply if the funding of the rabbi trust would subject the Executive to acceleration
of taxation and tax penalties under Section 409A(b) of the Code.

 

4.             The
Parties agree that Section 9g of the Employment Agreement (Directorship) is hereby removed and replaced with a new Section 9g
effective upon consummation of the Merger substantially in accordance with the terms of the Merger Agreement to read as follows:

 

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g.             Excise Tax Gross-Up. Anything in this Agreement
to the contrary notwithstanding, in the event it shall be determined that any payment, award, benefit or distribution (including
any acceleration) by the Company or any entity which effectuates a transaction described in Section 280G(b)(2)(A)(i) of the Code
to or for the benefit of the Executive (whether pursuant to the terms of this Agreement or otherwise, but determined without regard
to any additional payments required under this Section 9g) (a "Payment") would be subject to the excise tax imposed
by Section 4999 of the Code or any interest or penalties are incurred with respect to such excise tax by the Executive (such excise
tax, together with any such interest and penalties, are hereinafter collectively referred to as the "Excise Tax"),
then the Executive shall be entitled to receive an additional payment (a "Gross-Up Payment") in an amount such
that after payment by the Executive of all taxes, including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Taxes imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments. For purposes of this Section 9g, the Executive shall be deemed to pay
federal, state and local income taxes at the highest marginal rate of taxation for the calendar year in which the Gross-Up Payment
is to be made, taking into account the maximum reduction in federal income taxes which could be obtained from the deduction of
state and local income taxes.

 

All determinations required to be made
under this Section 9g, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the
assumptions to be utilized in arriving at such determination, shall be made by a certified public accounting firm of national standing
reasonably acceptable to the Executive as may be designated by the Company (the "Accounting Firm") which shall
provide detailed supporting calculations both to the Company and the Executive within 15 business days of the receipt of notice
from the Executive that there has been a Payment, or such earlier time as is requested by the Company. All fees and expenses of
the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 9g, shall
be paid by the Company to the Executive within five business days prior to the later of (i) the due date for the payment of any
Excise Tax, and (ii) the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise
Tax is payable by the Executive, it shall furnish the Executive with a written opinion to such effect, and to the effect that failure
to report the Excise Tax, if any, on the Executive’s applicable federal income tax return will not result in the imposition
of a negligence or similar penalty. Any determination by the Accounting Firm shall be binding upon the Company and the Executive.

 

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As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible
that Gross-Up Payments which will not have been made by the Company should have been made ("Underpayment") or
Gross-up Payments are made by the Company which should not have been made ("Overpayments"), consistent with the
calculations required to be made hereunder. In the event the Executive is required to make a payment of any Excise Tax, the Accounting
Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company
to or for the benefit of the Executive. In the event the amount of Gross-up Payment exceeds the amount necessary to reimburse the
Executive for his Excise Tax, the Accounting Firm shall determine the amount of the Overpayment that has been made and any such
Overpayment shall be promptly paid by the Executive (to the extent he has received a refund if the applicable Excise Tax has been
paid to the Internal Revenue Service) to or for the benefit of the Company. The Executive shall cooperate with any reasonable requests
by the Company in connection with any contests or disputes with the Internal Revenue Service in connection with the Excise Tax;
provided that the Company reimburse any reasonable expenses incurred by the Executive in connection with such cooperation.

 

5.                 
The Parties agree that the heading of Section 24 of the Employment Agreement is hereby amended to read "409A
Compliance" and Section 24(b) is hereby deleted effective upon consummation of the Merger substantially in accordance
with the terms of the Merger Agreement.

 

6.                 
The Parties agree that the grant agreement or other instruments evidencing each of Executive’s outstanding
equity awards shall be deemed amended by this Amendment effective upon consummation of the Merger substantially in accordance with
the terms of the Merger Agreement to the extent necessary to reflect the terms hereof.

 

[Remainder of page intentionally left
blank. Signature page follows.]

 

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IN WITNESS WHEREOF, the Parties hereto have
caused this Amendment to be duly executed as of the date first written above; provided, however, that this Amendment shall become
effective only if the Merger described in the Background above is consummated subtantially in accordance with the terms
of the Merger Agreement either while the Executive is employed by the Company or after the Executive's employment has been terminated
by the Company without Cause.

 

	 	PHARMATHENE, INC.
	 	 	 
	 	 	
	 	Name:	Brian Markison
	 	Title:	Chairman, Compensation Committee
	 	 	 
	 	 	 
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	 	
	 	Name:	Eric Richman

 

    	6

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