Document:

PROMISSORY
NOTE

  

	
        Principal

        $5,000,000.00
	
        Loan
        Date

        04-16-2014
	
        Maturity

        06-30-2015
	
        Loan No

        53125
	Call / Coll	
        Account

        2920
	Officier	Initials
	References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations.

 

	Borrower:	ourpet’s company, virtu company and smp

	Lender:	firstmerit
    bank, n.a.
	 	COMPANY
    INCORPORATED	 	Commercial
    Credit Services #90383
	 	1300
    EAST STREET	 	106 South Main Street
	 	FAIRPORT
    HARBOR, OH 44077	 	Akron, OH 44308
	 		 	(800)
    554-4362 

 

 

 

	Principal
    Amount: $5,000,000.00	Date
    of Note: April 16, 2014

 

PROMISE
TO PAY. OURPET’S COMPANY, VIRTU COMPANY and SMP COMPANY INCORPORATED (“Borrower”) jointly and severally promise to pay
to FIRSTMERIT BANK, N.A. (“Lender”), or order, in lawful money of the United States of America, the principal amount
of Five Million & 00/100 Dollars ($5,000,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding
principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance.

 

PAYMENT.
Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid interest on June 30, 2015. In
addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning
April 30, 2014, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed
or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; and then to any
late charges. Borrower will pay Lender at Lender’s address shown above or at such other place as Lender may designate in writing.

 

VARIABLE
INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an index which is
the LIBOR Rate (as hereinafter defined), adjusted and determined, without notice to Borrower, as of the date of this Note and
on the 1st day of each calendar month hereafter (“Interest Rate Change Date”). The “LIBOR Rate” shall
mean the London InterBank Offered Rate of interest for an interest period of one (1) month, on the day that is two London Business
Days preceding each Interest Rate Change Date (the “Reset Date”). “London Business Day” shall mean any
day on which commercial banks in London, England are open for general business (the “Index”). Lender will tell Borrower
the current Index rate upon Borrower’s request. The interest rate change will not occur more often than each calendar month
hereafter. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 0.154%
per annum. Interest on the unpaid principal balance of this Note will be calculated as described in the “INTEREST CALCULATION
METHOD” paragraph using a rate of 2.250 percentage points over the Index, resulting in an initial rate of 2.404%. NOTICE:
Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law.

 

INTEREST
CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate
over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal
balance is outstanding. All interest payable under this Note is computed using this method.

 

PREPAYMENT.
Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless
agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to make payments of accrued unpaid
interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked “paid
in full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may accept it without
losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender.
All written Communications concerning disputed amounts, including any check or other payment instrument that indicates that
the payment constitutes “payment in full” of the amount owed or that is tendered with other conditions or limitations
or as full satisfaction of a disputed amount must be mailed or delivered to: FIRSTMERIT BANK, N.A.; Commercial Credit Services
#90383; 106 South Main Street; Akron, OH 44308.

 

LATE
CHARGE. If a payment is 10 days or more late, Borrower will be charged 7.000% of the
regularly scheduled payment or $35.00, whichever is greater.

 

INTEREST
AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased
by adding an additional 6.000 percentage point margin (“Default Rate Margin”). The Default Rate Margin shall also apply
to each succeeding interest rate change that would have applied had there been no default. However, in no event will the interest
rate exceed the maximum interest rate limitations under applicable law.

 

DEFAULT.
Each of the following shall constitute an event of default (“Event of Default”) under this Note:

 

Payment
Default. Borrower fails to make any payment when due under this Note.

 

Other
Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note
or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any
other agreement between Lender and Borrower.

 

Default
in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase
or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s
property or Borrower’s ability to repay this Note or perform Borrower’s obligations under this Note or any of the related documents.

 

False
Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf under
this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

 

Insolvency.
The dissolution or termination of Borrower’s existence as a going business, the insolvency of Borrower, the appointment of
a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

 

Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the
loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of
Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is
the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding
and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender,
in its sole discretion, as being an adequate reserve or bond for the dispute.

 

Events
Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party
of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or
disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.

 

    	 

    	 

    

 

	 	PROMISSORY NOTE	 
	Loan No: 53125	(Continued)	Page 2

 

Change
In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

 

Adverse
Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance
of this Note is impaired.

 

Insecurity.
Lender in good faith believes itself insecure.

 

Cure
Provisions. If any default, other than a default in payment is curable and if Borrower has not been given a notice of a breach
of the same provision of this Note within the preceding twelve (12) months, it may be cured if Borrower, after Lender sends written
notice to Borrower demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires
more than fifteen (15) days, immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient to cure
the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon
as reasonably practical.

 

LENDER’S
RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest
immediately due, and then Borrower will pay that amount.

 

ATTORNEYS’
FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender
that amount. This includes, subject to any limits under applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether
or not there is a lawsuit, including attorneys’ fees, expenses for bankruptey proceedings (including efforts to modify or vacate
any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in
addition to all other sums provided by law.

 

JURY
WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding,
or counterclaim brought by either Lender or Borrower against the other.

 

GOVERNING
LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of Ohio without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of
Ohio.

 

CHOICE
OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of Summit
County, State of Ohio.

 

CONFESSION
OF JUDGMENT. Borrower hereby irrevocably authorizes and empowers any attorney-at-law, including an attorney hired by Lender,
to appear in any court of record and to confess judgment against Borrower for the unpaid amount of this Note as evidenced by an
affidavit signed by an officer of Lender setting forth the amount then due, attorneys’ fees plus costs of suit, and to release
all errors, and waive all rights of appeal. If a copy of this Note, verified by an affidavit, shall have been filed in the proceeding,
it will not be necessary to file the original as a warrant of attorney. Borrower waives the right to any stay of execution and
the benefit of all exemption laws now or hereafter in effect. No single exercise of the foregoing warrant and power to confess
judgment will be deemed to exhaust the power, whether or not any such exercise shall be held by any court to be invalid, voidable,
or void; but the power will continue undiminished and may be exercised from time to time as Lender may elect until all amounts
owing on this Note have been paid in full. Borrower waives any conflict of interest that an attorney hired by Lender may have
in acting on behalf of Borrower in confessing judgment against Borrower while such attorney is retained by Lender. Borrower expressly
consents to such attorney acting for Borrower in confessing judgment.

 

DISHONORED
ITEM FEE. Borrower will pay a fee to Lender of $33.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized
charge with which Borrower pays is later dishonored.

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with Lender
(whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all
accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which
setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to Charge or setoff all
sums owing on the debt against any and all such accounts, and, at Lender’s option, to administratively freeze all such accounts
to allow Lender to protect Lender’s Charge and setoff rights provided in this paragraph.

 

LINE
OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note, as well as directions for payment from
Borrower’s accounts, may be requested orally or in writing by Borrower or by an authorized person. Lender may, but need not, require
that all oral requests be confirmed in writing. Borrower agrees to be liable for all sums either: (A) advanced in accordance with
the instructions of an authorized person or (B) credited to any of Borrower’s accounts with Lender. The unpaid principal balance
owing on this Note at any time may be evidenced by endorsements on this Note or by Lender’s internal records, including daily computer
print-outs. Lender will have no obligation to advance funds under this Note if: (A) Borrower or any guarantor is in default under
the terms of this Note or any agreement that Borrower or any guarantor has with Lender, including any agreement made in connection
with the signing of this Note; (B) Borrower or any guarantor ceases doing business or is insolvent; (C) any guarantor seeks, Claims
or otherwise attempts to limit, modify or revoke such guarantor’s guarantee of this Note or any other loan with Lender; (D) Borrower
has applied funds provided pursuant to this Note for purposes other than those authorized by Lender; or (E) Lender in good faith
believes itself insecure.

 

CROSS-DEFAULT.
IT SHALL ALSO BE AN EVENT OF DEFAULT HEREUNDER IF BORROWER FAILS TO PERFORM OR COMPLY WITH ANY TERM, PROVISION OR CONDITION
OF ANY OTHER AGREEMENT, DOCUMENT OR INSTRUMENT EVIDENCING, SECURING OR SUPPORTING ANY INDEBTEDNESS OWING FROM BORROWER TO LENDER.

 

LETTER
OF CREDIT DRAWS. BORROWER HEREBY AUTHORIZES LENDER TO DRAW AGAINST THIS LINE OF CREDIT FOR REIMBURSEMENT OF ANY PAYMENTS MADE
BY LENDER PURSUANT TO ANY LETTER OF CREDIT, CHECK GUARANTEE LETTER, OR FOREIGN EXCHANGE CONTRACT, ISSUED OR SIGNED BY LENDER, OR
ANY AFFILIATE OF LENDER, FOR THE ACCOUNT OF BORROWER. BORROWER AGREES TO REIMBURSE LENDER FOR ANY SUCH PAYMENTS IN ACCORDANCE WITH
THE TERMS OF THIS AGREEMENT. BORROWER AGREES THAT LENDER MAY REDUCE THE AVAILABILITY OF THIS LINE OF CREDIT BY THE AMOUNT OF THE
LETTER OF CREDIT, CHECK GUARANTEE LETTER OR 15% OF THE FOREIGN EXCHANGE CONTRACT, FOR THE PERIOD OF TIME THAT THE LETTER OF CREDIT,
CHECK GUARANTEE LETTER OR FOREIGN EXCHANGE CONTRACT, IS OUTSTANDING IF THE LETTER OF CREDIT, CHECK GUARANTEE LETTER OR FOREIGN
EXCHANGE CONTRACT, IS ISSUED AGAINST THIS LINE OF CREDIT.

 

FEE
PROVISION. UPON RECEIPT OF A BILLING FROM LENDER, I AGREE TO PAY THE STATED LOAN FEE AND, WHEN APPLICABLE, THE STATED DOCUMENT
PREPARATION FEE.

 

BUSINESS
PURPOSE. THE LOAN EVIDENCED HEREBY IS FOR COMMERCIAL OR BUSINESS PURPOSES, AND IS NOT INTENDED AND WILL NOT BE USED FOR PERSONAL,
FAMILY, HOUSEHOLD, EDUCATIONAL, CONSUMER OR AGRICULTURAL PURPOSES.

 

    	 

    	 

    

 

	 	PROMISSORY NOTE	 
	Loan No: 53125	(Continued)	Page 3

 

UNUSED
COMMITMENT FEE. Borrower hereby agrees to pay to Lender an Unused Commitment Fee (“UCF”) equal to (a) the Applicable
Commitment Fee Rate (calculated on the basis of a year of 360 days and for actual days elapsed (including the first day but excluding
the last day the Commitment remains outstanding)) multiplied by (b) the Commitment Amount less the sum of Direct Line Borrowings
and Outstanding Letters of Credit issued under the Commitment. The UCF shall be calculated by Lender as of the close of each calendar
day. Borrower shall be billed and remit the UCF on a calendar quarter basis in the month immediately following the end of the
calendar quarter.

 

Applicable
Commitment Fee Rate means (.125%).

 

PRIOR
NOTE. This Note is a restatement of the indebtedness evidenced by, and is a replacement and consolidation of the $5,000,000.00
Promissory Note of Borrower dated June 28, 2011 payable to the order of Lender, including any and all amendments thereto (the “Original
Note”), with a principal balance of $2,319,031.93 as of the date hereof, and nothing contained herein shall be construed;
(1) to deem paid or forgiven the unpaid principal amount of, or unpaid accrued interest on, said Promissory Note outstanding at
the time of its replacement by this Note; or (2) to release, cancel, terminate or otherwise adversely affect all or any part of
any lien, mortgage, deed of trust, assignment, security interest or other encumbrance heretofore granted or for the benefit of
the payee of said Promissory Note which has not otherwise been expressly released.

 

SUCCESSOR
INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives, successors
and assigns, and shall inure to the benefit of Lender and its successors and assigns.

 

GENERAL
PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Borrower does not
agree or intend to pay, and Lender does not agree or intend to contract for, charge, collect, take, reserve or receive (collectively
referred to herein as “charge or collect”), any amount in the nature of interest or in the nature of a fee for this
loan, which would in any way or event (including demand, prepayment, or acceleration) cause Lender to charge or collect more for
this loan than the maximum Lender would be permitted to charge or collect by federal law or the law of the State of Ohio (as applicable).
Any such excess interest or unauthorized fee shall, instead of anything stated to the contrary, be applied first to reduce the
principal balance of this loan, and when the principal has been paid in full, be refunded to Borrower. Lender may delay or forgo
enforcing any of its rights or remedies under this Note without losing them. Each Borrower understands and agrees that, with or
without notice to Borrower, Lender may with respect to any other Borrower (a) make one or more additional secured or unsecured
loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more
times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the
indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without
the substitution of new collateral; (d) apply such security and direct the order or manner of sale thereof, including without limitation,
any non-judicial sale permitted by the terms of the controlling security agreements, as Lender in its discretion may determine;
(e) release, substitute, agree not to sue, or deal with any one or more of Borrower’s sureties, endorsers, or other guarantors
on any terms or in any manner Lender may choose; and (f) determine how, when and what application of payments and credits shall
be made on any other indebtedness owing by such other Borrower. Borrower and any other person who signs, guarantees or endorses
this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor,
accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly
and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect
Lender’s security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice
to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the
party with whom the modification is made. The obligations under this Note are joint and several.

 

    	 

    	 

    

 

	 	PROMISSORY NOTE	 
	Loan No: 53125	(Continued)	Page 4

 

PRIOR
TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE
PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE NOTE.

 

BORROWER
ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

 

	 
	NOTICE:
    FOR THIS NOTICE “YOU” MEANS THE BORROWER AND “CREDITOR” AND “HIS” MEANS LENDER.
	 
	WARNING
    - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE
    TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY
    CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE
    AGREEMENT, OR ANY OTHER CAUSE.
	 

 

BORROWER:

 

OURPET’S
COMPANY

 

	By:	/s/ Steven
    Tsengas	 
	 	STEVEN
    TSENGAS, President of OURPET’S COMPANY	 

 

VIRTU
COMPANY

 

	By:	/s/ Steven
    Tsengas	 
	 	STEVEN
    TSENGAS, President of VIRTU COMPANY	 

 

SMP
COMPANY INCORPORATED

 

	By:	/s/ Steven
    Tsengas	 
	 	STEVEN TSENGAS,
    President of SMP COMPANY INCORPORATED	 

 

 

LASER PRO Lending, Ver. 13.4.0.034
Copr. Harland Financial Solutions, Inc. 1997, 2014. All Rights Reserved. - OH d:\laserpro\commercial\prod\CFI\LPL\D20.FC TR-5015940
PR-51PROMISSORY
NOTE

 

	
        Principal

        $277,777.92 
	
        Loan Date

        04-16-2014
	
        Maturity

        12-07-2015
	
        Loan No

        01571
	Call / Coll	
        Account

        2920
	Officer	Initials
	References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations.

  

	Borrower:	ourpet’S Company, smp COMPANY	Lender:	firstmerit bank, n.a.
	 	INCORPORATED and virtu Company	 	Commercial Credit Services #90383
	 	1300 EAST STREET	 	106 South Main Street
	 	FAIRPORT HARBOR, OH 44077	 	Akron, OH 44308
	 	 	 	(800) 554-4362 

  

 

 

	Principal
    Amount: $277,777.92	Date
    of Note: April 16, 2014

 

PROMISE
TO PAY. OURPET’S COMPANY, SMP COMPANY INCORPORATED and VIRTU COMPANY (“Borrower”) jointly and severally
promise to pay to FIRSTMERIT BANK, N.A. (“Lender”), or order, in lawful money of the United States of America,
the principal amount of Two Hundred Seventy-seven Thousand Seven Hundred Seventy-seven & 92/100 Dollars ($277,777.92), together
with interest on the unpaid principal balance from April 16, 2014, until paid in full.

 

PAYMENT.
Subject to any payment changes resulting from changes in the Index, Borrower will pay this loan in accordance with the
following payment schedule, which calculates interest on the unpaid principal balances as described in the “INTEREST
CALCULATION METHOD” paragraph using the interest rates described in this paragraph: 19 monthly consecutive interest
payments, beginning May 15, 2014, with interest calculated on the unpaid principal balances using an interest rate based on
the LIBOR Rate (as hereinafter defined), adjusted and determined, without notice to Borrower, as of the date of this Note and
on the 15th day of each calendar month hereafter (“Interest Rate Change Date”). The “LIBOR Rate”
shall mean the London InterBank Offered Rate of interest for an interest period of one (1) month, on the day that is two
London Business Days preceding each Interest Rate Change Date (the “Reset Date”). “London Business
Day” shall mean any day on which commercial banks in London, England are open for general business (currently 0.154%),
plus a margin of 2.250 percentage points, resulting in an initial interest rate of 2.404%; 19 monthly consecutive principal
payments of $13,888.90 each, beginning May 15, 2014, during which interest continues to accrue on the unpaid principal
balances using an interest rate based on the LIBOR Rate (as hereinafter defined), adjusted and determined, without notice to
Borrower, as of the date of this Note and on the 15th day of each calendar month hereafter (“Interest Rate Change
Date”). The “LIBOR Rate” shall mean the London InterBank Offered Rate of interest for an interest period of
one (1) month, on the day that is two London Business Days preceding each Interest Rate Change Date (the “Reset
Date”). “London Business Day” shall mean any day on which commercial banks in London, England are open for
general business (currently 0.154%), plus a margin of 2.250 percentage points, resulting in an initial interest rate of
2.404%; and one principal and interest payment of $13,909.20 on December 7, 2015, with interest calculated on the unpaid
principal balances using an interest rate based on the LIBOR Rate (as hereinafter defined), adjusted and determined, without
notice to Borrower, as of the date of this Note and on the 15th day of each calendar month hereafter (“Interest Rate
Change Date”). The “LIBOR Rate” shall mean the London InterBank Offered Rate of interest for an
interest period of one (1) month, on the day that is two London Business Days preceding each Interest Rate Change Date (the
“Reset Date”). “London Business Day” shall mean any day on which commercial banks in London, England
are open for general business (currently 0.154%), plus a margin of 2.250 percentage points, resulting in an initial interest
rate of 2.404%. This estimated final payment is based on the assumption that all payments will be made exactly as scheduled
and that the Index does not change; the actual final payment will be for all principal and accrued interest not yet paid,
together with any other unpaid amounts under this Note. Notwithstanding the foregoing, the rate of interest accrual described
for the principal only payment stream applies only to the extent that no other interest rate for any other payment stream
applies. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid
interest; then to principal; and then to any late charges. Borrower will pay Lender at Lender’s address shown above or
at such other place as Lender may designate in writing.

 

VARIABLE
INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an index which is
the LIBOR Rate (as hereinafter defined), adjusted and determined, without notice to Borrower, as of the date of this Note and
on the 15th day of each calendar month hereafter (“Interest Rate Change Date”). The “LIBOR Rate” shall
mean the London InterBank Offered Rate of interest for an interest period of one (1) month, on the day that is two London Business
Days preceding each Interest Rate Change Date (the “Reset Date”). “London Business Day” shall mean any
day on which commercial banks in London, England are open for general business (the “Index”). Lender will tell Borrower
the current Index rate upon Borrower’s request. The interest rate change will not occur more often than each calendar month
hereafter. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 0.154% per
annum. The interest rate or rates to be applied to the unpaid principal balance during this Note will be the rate or rates
set forth herein in the “Payment” section. Notwithstanding any other provision of this Note, after the first payment
stream, the interest rate for each subsequent payment stream will be effective as of the due date of the last payment in the just-ending
payment stream. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable
law. Whenever increases occur in the interest rate, Lender, at its option, may do one or more of the following: (A) increase Borrower’s
payments to ensure Borrower’s loan will pay off by its original final maturity date, (B) increase Borrower’s payments
to cover accruing interest, (C) increase the number of Borrower’s payments, and (D) continue Borrower’s payments at
the same amount and increase Borrower’s final payment.

 

INTEREST
CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate
over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal
balance is outstanding. All interest payable under this Note is computed using this method.

 

PREPAYMENT.
Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless
agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to make payments under the payment
schedule. Rather, early payments will reduce the principal balance due and may result in Borrower’s making fewer payments.
Borrower agrees not to send Lender payments marked “paid in full”, “without recourse”, or similar language.
If Borrower sends such a payment, Lender may accept it without losing any of Lender’s rights under this Note, and Borrower
will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including
any check or other payment instrument that indicates that the payment constitutes “payment in full” of the amount
owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed
or delivered to: FIRSTMERIT BANK, N.A.; Commercial Credit Services #90383; 106 South Main Street; Akron, OH 44308.

 

LATE
CHARGE. If a payment is 10 days or more late, Borrower will be charged 7.000%
of the regularly scheduled payment or $35.00, whichever is greater.

 

INTEREST
AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased
by adding an additional 6.000 percentage point margin (“Default Rate Margin”). The Default Rate Margin shall also
apply to each succeeding interest rate change that would have applied had there been no default. After maturity, or after this
Note would have matured had there been no default, the Default Rate Margin will continue to apply to the final interest rate described
in this Note. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law.

 

    	 

    	 

    

 

	 	PROMISSORY NOTE	 
	Loan No: 01571	(Continued)	Page 2

 

DEFAULT.
Each of the following shall constitute an event of default (“Event of Default”) under this Note:

 

Payment
Default. Borrower fails to make any payment when due under this Note.

 

Other
Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note
or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any
other agreement between Lender and Borrower.

 

Default
in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase
or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s
property or Borrower’s ability to repay this Note or perform Borrower’s obligations under this Note or any of the related documents.

 

False
Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf under
this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

 

Insolvency.
The dissolution or termination of Borrower’s existence as a going business, the insolvency of Borrower, the appointment of
a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

 

Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the
loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of
Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is
the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding
and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender,
in its sole discretion, as being an adequate reserve or bond for the dispute.

 

Events
Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party
of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or
disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.

 

Change
In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

 

Adverse
Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance
of this Note is impaired.

 

Insecurity.
Lender in good faith believes itself insecure.

 

Cure
Provisions. If any default, other than a default in payment is curable and if Borrower has not been given a notice of a breach
of the same provision of this Note within the preceding twelve (12) months, it may be cured if Borrower, after Lender sends written
notice to Borrower demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires
more than fifteen (15) days, immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient to cure
the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon
as reasonably practical.

 

LENDER’S
RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest
immediately due, and then Borrower will pay that amount.

 

ATTORNEYS’
FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender
that amount. This includes, subject to any limits under applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether
or not there is a lawsuit, including attorneys’ fees, expenses for bankruptcy proceedings (including efforts to modify or vacate
any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in
addition to all other sums provided by law.

 

JURY
WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either
Lender or Borrower against the other.

 

GOVERNING
LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of Ohio without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of
Ohio.

 

CHOICE
OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of Summit
County, State of Ohio.

 

CONFESSION
OF JUDGMENT. Borrower hereby irrevocably authorizes and empowers any attorney-at-law, including an attorney hired by Lender,
to appear in any court of record and to confess judgment against Borrower for the unpaid amount of this Note as evidenced by an
affidavit signed by an officer of Lender setting forth the amount then due, attorneys’ fees plus costs of suit, and to release
all errors, and waive all rights of appeal. If a copy of this Note, verified by an affidavit, shall have been filed in the proceeding,
it will not be necessary to file the original as a warrant of attorney. Borrower waives the right to any stay of execution and
the benefit of all exemption laws now or hereafter in effect. No single exercise of the foregoing warrant and power to confess
judgment will be deemed to exhaust the power, whether or not any such exercise shall be held by any court to be invalid, voidable,
or void; but the power will continue undiminished and may be exercised from time to time as Lender may elect until all amounts
owing on this Note have been paid in full. Borrower waives any conflict of interest that an attorney hired by Lender may have in
acting on behalf of Borrower in confessing judgment against Borrower while such attorney is retained by Lender. Borrower expressly
consents to such attorney acting for Borrower in confessing judgment.

 

DISHONORED
ITEM FEE. Borrower will pay a fee to Lender of $33.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized
Charge with which Borrower pays is later dishonored.

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with Lender
(whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all
accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which
setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all
sums owing on the debt against any and all such accounts, and, at Lender’s option, to administratively freeze all such accounts
to allow Lender to protect Lender’s charge and setoff rights provided in this paragraph.

 

FEE
PROVISION. UPON RECEIPT OF A BILLING FROM LENDER, I AGREE TO
PAY THE STATED LOAN FEE AND, WHEN APPLICABLE, THE STATED DOCUMENT PREPARATION FEE.

 

BUSINESS
PURPOSE. THE LOAN EVIDENCED HEREBY IS FOR COMMERCIAL OR BUSINESS PURPOSES, AND IS NOT INTENDED AND WILL NOT BE USED FOR PERSONAL,
FAMILY, HOUSEHOLD, EDUCATIONAL, CONSUMER OR AGRICULTURAL PURPOSES.

 

    	 

    	 

    

 

	 	PROMISSORY NOTE	 
	Loan No: 01571	(Continued)	Page 3

 

CROSS-DEFAULT.
IT SHALL ALSO BE AN EVENT OF DEFAULT HEREUNDER IF BORROWER FAILS TO PERFORM OR COMPLY WITH ANY TERM, PROVISION OR CONDITION OF
ANY OTHER AGREEMENT, DOCUMENT OR INSTRUMENT EVIDENCING, SECURING OR SUPPORTING ANY INDEBTEDNESS OWING FROM BORROWER TO LENDER.

 

PRIOR
NOTE. This Note is a restatement of the indebtedness evidenced by, and is a replacement and consolidation of the $500,000.00
Promissory Note of Borrower dated December 7, 2012 payable to the order of Lender, including any and all amendments thereto (the
“Original Note”), with a principal balance of $277,777.92 as of the date hereof, and nothing contained herein shall
be construed; (1) to deem paid or forgiven the unpaid principal amount of, or unpaid accrued interest on, said Promissory Note
outstanding at the time of its replacement by this Note; or (2) to release, cancel, terminate or otherwise adversely affect all
or any part of any lien, mortgage, deed of trust, assignment, security interest or other encumbrance heretofore granted or for
the benefit of the payee of said Promissory Note which has not otherwise been expressly released.

 

SUCCESSOR
INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives, successors
and assigns, and shall inure to the benefit of Lender and its successors and assigns.

 

GENERAL
PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Borrower does not
agree or intend to pay, and Lender does not agree or intend to contract for, charge, collect, take, reserve or receive (collectively
referred to herein as “charge or collect”), any amount in the nature of interest or in the nature of a fee for this
loan, which would in any way or event (including demand, prepayment, or acceleration) cause Lender to charge or collect more for
this loan than the maximum Lender would be permitted to charge or collect by federal law or the law of the State of Ohio (as applicable).
Any such excess interest or unauthorized fee shall, instead of anything stated to the contrary, be applied first to reduce the
principal balance of this loan, and when the principal has been paid in full, be refunded to Borrower. Lender may delay or forgo
enforcing any of its rights or remedies under this Note without losing them. Each Borrower understands and agrees that, with or
without notice to Borrower, Lender may with respect to any other Borrower (a) make one or more additional secured or unsecured
loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more
times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the
indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without
the substitution of new collateral; (d) apply such security and direct the order or manner of sale thereof, including without limitation,
any non-judicial sale permitted by the terms of the controlling security agreements, as Lender in its discretion may determine;
(e) release, substitute, agree not to sue, or deal with any one or more of Borrower’s sureties, endorsers, or other guarantors
on any terms or in any manner Lender may choose; and (f) determine how, when and what application of payments and credits shall
be made on any other indebtedness owing by such other Borrower. Borrower and any other person who signs, guarantees or endorses
this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor,
accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly
and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect
Lender’s security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice
to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the
party with whom the modification is made. The obligations under this Note are joint and several.

 

    	 

    	 

    

 

	 	PROMISSORY NOTE	 
	Loan No:  01571	(Continued)	Page 4

 

PRIOR
TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST
RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES RECEIPT OF
A COMPLETED COPY OF THIS PROMISSORY NOTE.

 

	 
	NOTICE:
    FOR THIS NOTICE “YOU” MEANS THE BORROWER AND “CREDITOR” AND “HIS” MEANS LENDER.
	 
	WARNING
    - BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE
    TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY
    CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE
    AGREEMENT, OR ANY OTHER CAUSE.
	 

 

BORROWER:

 

OURPET’S COMPANY

 

	By:	/s/ Steven Tsengas	 
	 	STEVEN TSENGAS, President of OURPET’S COMPANY	 

 

SMP COMPANY INCORPORATED

 

	By:	/s/ Steven Tsengas	 
	 	STEVEN TSENGAS, President of SMP COMPANY INCORPORATED	 

 

VIRTU COMPANY By:

 

	By:	/s/ Steven Tsengas	 
	 	STEVEN TSENGAS, President of VIRTU COMPANY	 

  

 

LASER PRO Lending, Ver.
13.4.0.034 Copr. Harland Financial Solutions, Inc. 1997, 2014. All Rights Reserved. - OH d:\laserpro\commercial\prod\CFI\LPL\D20.FC
TR-5016289 PR-4

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