Document:

Amended Subordinated Promissory Note, dated as of October 18, 2006

 Exhibit 10.26 
 Execution Copy 
 THE PAYMENT OF PRINCIPAL AND INTEREST ON THIS NOTE IS SUBJECT TO CERTAIN SUBORDINATION PROVISIONS SET FORTH
IN SECTION 4 HEREOF. THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY COMPARABLE STATE SECURITIES LAW. 
 AMENDED SUBORDINATED PROMISSORY NOTE 
  

			
	 	  	January 4, 2006
		
		  	As Amended October 18, 2006
		
	$250,000	  	Cleveland, Ohio

 FOR VALUE RECEIVED, the undersigned, OURPET’S COMPANY, a Colorado corporation
(“Maker”), promises to pay to the order of PET ZONE PRODUCTS LTD., an Ohio limited liability company (“Holder”), the principal sum of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000), together
with interest at the rate of seven and three-quarters percent (7.75%) per annum, in accordance with the following terms and conditions. This Subordinated Promissory Note (this “Note”) is made pursuant to that certain Asset Purchase
Agreement, of even date herewith, by and between Maker and Holder (the “Purchase Agreement”). Capitalized terms not otherwise defined in this Note shall have the meanings ascribed thereto in the Purchase Agreement. 
 1. Payment of Principal and Interest. Interest on this Note shall accrue from and including the date of issuance through and until the
repayment of the principal amount of this Note and shall be computed on the basis of a 360-day year comprised of twelve 30-day months. The principal and interest on this Note shall be paid in twenty (20) equal quarterly installments in such
amounts and upon such dates as set forth on Exhibit A attached hereto, under which such payments shall commence and be due and payable on 10/1/2006 (“First Installment Date”) and the remaining installments shall be due and
payable on the last business day of each successive fiscal quarter. Notwithstanding the foregoing provisions of this Section 1, but subject to applicable law, any overdue principal of and overdue interest on this Note shall bear
interest, payable on demand in immediately available funds, for each day from the date of payment thereof was due to the date of actual payment, at a rate of eleven and three-quarters percent (11.75%) per annum (such sum being referred to as
the “Default Rate”), and, upon and during the occurrence of an Event of Default (as defined below), this Note shall bear interest from the date of the occurrence of such Event of Default until such Event of Default is cured or
waived, payable on demand in immediately available funds, at a rate equal to the Default Rate. In the event that any interest rate provided in this Section 1, shall be determined to be unlawful, such interest rate shall be computed at
the highest rate permitted by applicable law. Any payment by Maker of any interest amount in excess of that permitted by law shall be considered a mistake, with the excess being applied to the principal amount of this Note without prepayment premium
or penalty; if no such principal amount is outstanding, such excess shall be returned to Maker. 
 2. Prepayment. Maker may, at
any time or from time to time, prepay all or any part of the principal amount due hereunder without any premium or penalty whatsoever. 

 3. Place of Payment. All payments on or in respect of this Note shall be made to Holder at
the address set forth in Section 8 of this Note, or, at the option of Holder, at such other place as Holder may, at any time or from time to time, designate to Maker in writing. 
 4. Events of Default and Remedies. 
 (a) The occurrence and continuance of the following events shall be considered events of default under this Note (each an “Event of Default”): (i) any failure of Maker to pay any principal or interest on this Note when
due or within five (5) business days thereof; (ii) there shall been filed or commenced against Maker, an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect or an action shall have
been commenced to appoint a receiver, liquidator, assignee, custodian, trustee or similar official of Maker or for any substantial part of Maker’s property or assets or for the winding-up or liquidation of Maker’s affairs and such action
or proceeding shall not have been dismissed within sixty (60) days; (iii) Maker shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereinafter in effect, or shall consent to the
appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian or other similar official of Maker or of any substantial part of Maker’s property or assets, or shall make any general assignment of the benefit of
creditors, or shall take any action in furtherance of any of the foregoing; or (iv) Maker shall be in material default of any other term and/or condition of this Note, and such default shall remain uncured for thirty (30) days following
notice of such default by Holder. 
 (b) Upon the occurrence of an Event of Default, all of the principal and interest due or to become due
under this Note shall become at once due and payable at the option of Holder without notice, demand, presentment or dishonor, which Maker hereby waives. 
 (c) Maker hereby irrevocably waives all right to trial by jury in any action, proceeding or counterclaim arising out of or relating to this Note and, upon any Event of Default, agrees to pay Holder’s costs of
collection including, but not limited to, reasonable attorneys’ fees, paralegals’ fees and expenses. 
 5.
Subordination. Notwithstanding anything in this Note or under any other agreement to the contrary, the obligations of Maker in respect of this Note, including, without limitation, Maker’s obligations of payment with respect to
principal and interest, will be subordinate and junior in right of payment to any and all existing and future superior indebtedness, including, without limitation, all of Maker’s existing and future indebtedness to First Merit Bank, N.A. (or
any successor lender) and Maker’s existing indebtedness to the U.S. Small Business Administration (collectively, “Superior Indebtedness”); provided that regularly scheduled payments of principal and interest hereunder
shall be permitted by Maker’s lenders at all times other than during the continuation of a payment default under the Superior Indebtedness. Any delay in any payment under this Note resulting from the restrictions set forth in this Section shall
not result in a default hereunder, and Holder agrees not to seek any remedies against Maker or otherwise with respect to Maker’s failure to pay to the extent such failure to pay is as a result of such restrictions. 
  

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 6. Amendment and Waiver. No modification or amendment of this Note shall be valid unless
made in writing and signed by the parties hereto. The failure of Holder to exercise any of its rights hereunder shall constitute a waiver of the same and of any other right in that or any subsequent instance. No extension of time for payment of all
or part of the amount owed under this Note at any time shall affect the liability of the Maker. 
 7. Assignability. Holder may
assign its rights under this Note to an affiliated entity(ies) (including, without limitation, Holder’s members) without the consent of Maker; provided that any subsequent Holder shall be subject to the terms hereof including, without
limitation, the subordination provisions set forth in Section 5. Maker may not assign its duties and responsibilities pursuant to this Note without the prior written consent of Holder. 
 8. Notices. All payments, notices, demands or other communications required or permitted to be given or made hereunder shall be in writing
and (i) delivered personally, or (ii) sent by pre-paid, first class, certified or registered mail, return receipt requested, or (iii) by priority overnight national express courier service, or (iv) by facsimile transmission
(followed by a hard copy by U.S. mail or priority overnight delivery as aforesaid), to the intended recipient thereof at its address or facsimile number set forth below: 
  

			
	If to Holder:	  	 Pet Zone Products, Ltd.
 c/o Early Stage
Partners
 1801 East Ninth Street,
 Suite 1700
 Cleveland, Ohio 44114
 Facsimile: (216) 781-0156
 Attn: James D. Ireland III

		
	With copy to:	  	 Benesch, Friedlander, Coplan & Aronoff LLP
 2300 BP Tower
 200 Public Square
 Cleveland, Ohio 44114
 Facsimile: (216) 363-4588
 Attn:
Peter K. Shelton, Esq.

		
	If to Maker:	  	 OurPet’s Company
 1300 East Street
 Fairport Harbor, Ohio 44077
 Facsimile: (440) 354-9129
 Attn: Steven Tsengas

		
	With copy to:	  	 Kohrman Jackson & Krantz P.L.L.
 1375 East Ninth Street
 One Cleveland Center, 20th Floor
 Cleveland, Ohio 44114-1793
 Attn:
Connie S. Carr, Esq.

  

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 Any party may, by notice given in accordance with this Section to the other parties, designate another address or person
for receipt of notices hereunder. 
 9. Cancellation. After all principal and interest, if any, at any time owed on this Note
has been paid in full, this Note shall be surrendered to Maker for cancellation and shall not be reissued. 
 10. Governing
Law. This Note is governed by, and shall be construed and enforced in accordance with, the laws of the State of Ohio, without regard to conflicts of law principles. 
 11. Severability. If any provision of this Note is held invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Note shall remain in full force and effect. Any provision of this Note held invalid or unenforceable only in part or degree shall remain in full force and effect to the extent not held invalid of unenforceable. 
 12. No Strict Construction. Maker and Holder have participated jointly in the negotiation and drafting of this Note. In the event an
ambiguity or question of intent or interpretation arises, this Note shall be construed as if drafted jointly by Maker and Holder, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any
provision of this Note. 
 13. Remedies. No remedy herein conferred upon Holder, or otherwise available to Holder at law or in
equity, is intended to be exclusive of any other remedy and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. No
delay or omission on the part of Holder in exercising any right under this Note shall operate as a waiver of such right or of any other right of Holder, nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the
same or any other right on any future occasion. No course of dealing between Maker and Holder or any delay on the part of Holder in exercising any rights hereunder shall operate as a waiver of any right. 
 <Signature page follows> 
  

 4 

 IN WITNESS WHEREOF, Maker has executed this Note on the date first set forth above. 
  

			
	OurPet’s Company, a Colorado corporation
		
	By:	 	 /s/ Steven Tsengas

	Its:	 	President/CEO

  

 5 

 EXHIBIT A 
 PAYMENT AMORTIZATION SCHEDULE 
  

																			
	 #
	 	 Date
	 	Principal	 	 Interest
 Payment
	 	 	 Total
 Payment

	 	 	Beginning	 	Repayment	 	Ending	 	 
		 		 			 			 			 	 	7.75	%	 		
		 	1/3/2006	 	$	250,000.00	 	$	 	 	$	250,000.00	 				 		
	1	 	3/31/2006	 	$	250,000.00	 	$	0.00	 	$	250,000.00	 	$	4,844.00	 	 	$	4,844.00
	2	 	6/30/2006	 	$	250,000.00	 	$	0.00	 	$	250,000.00	 	$	4,844.00	 	 	$	4,844.00
	3	 	9/30/2006	 	$	250,000.00	 	$	87,500.00	 	$	162,500.00	 	$	4,844.00	 	 	$	92,344.00
	4	 	10/1/2006	 	$	162,500.00	 	$	20,583.00	 	$	141,917.00	 	$	—  	 	 	$	20,583.00
	5	 	12/31/2006	 	$	141,917.00	 	$	7,128.00	 	$	134,789.00	 	$	2,750.00	 	 	$	9,878.00
	6	 	3/31/2007	 	$	134,789.00	 	$	7,266.00	 	$	127,523.00	 	$	2,612.00	 	 	$	9,878.00
	7	 	6/30/2007	 	$	127,523.00	 	$	7,407.00	 	$	120,116.00	 	$	2,471.00	 	 	$	9,878.00
	8	 	9/30/2007	 	$	120,116.00	 	$	7,551.00	 	$	112,565.00	 	$	2,327.00	 	 	$	9,878.00
	9	 	12/31/2007	 	$	112,565.00	 	$	7,697.00	 	$	104,868.00	 	$	2,181.00	 	 	$	9,878.00
	10	 	3/31/2008	 	$	104,868.00	 	$	7,846.00	 	$	97,022.00	 	$	2,032.00	 	 	$	9,878.00
	11	 	6/30/2008	 	$	97,022.00	 	$	7,998.00	 	$	89,024.00	 	$	1,880.00	 	 	$	9,878.00
	12	 	9/30/2008	 	$	89,024.00	 	$	8,153.00	 	$	80,871.00	 	$	1,725.00	 	 	$	9,878.00
	13	 	12/31/2008	 	$	80,871.00	 	$	8,311.00	 	$	72,560.00	 	$	1,567.00	 	 	$	9,878.00
	14	 	3/31/2009	 	$	72,560.00	 	$	8,472.00	 	$	64,088.00	 	$	1,406.00	 	 	$	9,878.00
	15	 	6/30/2009	 	$	64,088.00	 	$	8,636.00	 	$	55,452.00	 	$	1,242.00	 	 	$	9,878.00
	16	 	9/30/2009	 	$	55,452.00	 	$	8,804.00	 	$	46,648.00	 	$	1,074.00	 	 	$	9,878.00
	17	 	12/31/2009	 	$	46,648.00	 	$	8,974.00	 	$	37,674.00	 	$	904.00	 	 	$	9,878.00
	18	 	3/31/2010	 	$	37,674.00	 	$	9,148.00	 	$	28,526.00	 	$	730.00	 	 	$	9,878.00
	19	 	6/30/2010	 	$	28,526.00	 	$	9,325.00	 	$	19,201.00	 	$	553.00	 	 	$	9,878.00
	20	 	9/30/2010	 	$	19,201.00	 	$	9,506.00	 	$	9,695.00	 	$	372.00	 	 	$	9,878.00
	21	 	12/31/2010	 	$	9,695.00	 	$	9,695.00	 	$	—  	 	$	188.00	 	 	$	9,883.00
		 	1/1/2011	 	$	—  	 			 			 	$	—  	 	 		
		 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTALS	 		 	$	250,000.00	 	$	250,000.00	 	$	—  	 	$	40,546.00	 	 	$	290,546.00
		 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
					
	Summary of Forgiveness & Payments	 			 			 				 		
	*Debt Forgiveness	 			 	$	87,500.00	 			 				 	$	87,500.00
	Debt Repayment	 			 	$	162,500.00	 			 	$	40,546.00	 	 	$	203,046.00
		 		 			 			 			 				 	 	 
	Total Due at 10/1/2006	 			 			 				 	$	35,115.00
		 		 			 			 			 				 	 	 
	    Principal (3 payments of $6,861)	 			 				 	$	20,583.00
	    Interest (3 payments of $4,844)	 			 				 	$	14,532.00

  

 6Amendment to the Amended and Restated Change in Control Agreement

 EXHIBIT 10.1 
 AMENDMENT TO THE 
 AMENDED AND RESTATED 
 CHANGE IN CONTROL AGREEMENT 
 (JAMES G. LAWRENCE) 
 This Amendment to the Amended and Restated Change in Control Agreement (dated as of November 30, 2004) (the “Agreement”), is made as of
this 18th day of October, 2006, among Valley National Bank (“Bank”), Valley National Bancorp
(“Valley”), and JAMES G. LAWRENCE (the “Executive”). 
 WHEREAS, the Executive has been employed by Valley and the Bank
for many years; and 
 WHEREAS, the Bank, Valley, and the Executive previously entered into the Agreement; and 
 WHEREAS, the Bank, Valley and the Executive wish to amend the Agreement; 
 NOW, THEREFORE, for good and valuable consideration, the Bank, Valley and the Executive, each intending to be legally bound hereby, agree as follows: 
 1. Subsection (b) of Section 9 of the Agreement, relating to continuation of certain welfare benefit coverages following termination of
employment, is deleted in its entirety and replaced with the following new subsection (b): 
 “b. Within 20 business days
of the termination of employment, pay the Executive a lump sum amount equal to one hundred twenty-five percent (125%) of (A) the aggregate COBRA premium amounts (based upon COBRA rates then in effect) for the equivalent period of the lump
sum payment (i.e., 3 years, or if the Executive has reached age 62, the number multiplier then in effect under the fourth paragraph of Section 9) of the health, hospitalization and medical coverage 

 that was being provided to the Executive (and his spouse) at the time of termination of employment, minus
(B) the aggregate amount of any employee contribution that would have been required of the Executive (determined as of the termination of employment) for such period.” 
 3. The Agreement is amended by adding the following new Section 14A, immediately following the end of Section 14: 
 “14A. Delay in Payment. Notwithstanding anything else to the contrary in this Agreement, the BEP, or any other plan, contract,
program or otherwise, the Company (and its affiliates) are expressly authorized to delay any scheduled payments under this Agreement, the BEP, and any other plan, contract, program or otherwise, as such payments relate to the Executive, if the
Company (or its affiliate) determines that such delay is necessary in order to comply with the requirements of Section 409A of the Internal Revenue Code. No such payment may be delayed beyond the date that is six (6) months following the
Executive’s separation from service (as defined in Section 409A). At the end of such period of delay, the Executive will be paid the delayed payment amounts, plus interest for the period of any such delay. For purposes of the preceding
sentence, interest shall be calculated using the six (6) month Treasury Bill rate in effect on the date on which the payment is delayed, and shall be compounded daily.” 
 IN WITNESS WHEREOF, Valley National Bank and Valley National Bancorp each have caused this Amendment to the Agreement to be signed by their duly
authorized representatives pursuant to the authority of their respective Boards of Directors, and the 

 Executive has personally executed this Amendment to the Agreement, all as of the day and year first written above.

  

					
	ATTEST:	 	VALLEY NATIONAL BANCORP
			
	 /s/ Carol B. Diesner
	 	By:	 	 /s/ Robert McEntee

	Carol B. Diesner, SVP	 		 	Robert McEntee, Chairman of the
		 		 	Compensation and Human
		 		 	Resources Committee
		
	ATTEST:	 	VALLEY NATIONAL BANK
			
	 /s/ Carol B. Diesner
	 	By:	 	 /s/ Robert McEntee

	Carol B. Diesner, SVP	 		 	Robert McEntee, Chairman of the
		 		 	Compensation and Human
		 		 	Resources Committee
			
	WITNESS:	 		 	
			
	 /s/ Denise Davis
	 	By:	 	 /s/ James G. Lawrence

	Denise Davis, Secretary	 		 	James G. Lawrence, Executive

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