Document:

EX-4.1

 Exhibit 4.1 
  

			
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 GALAPAGOS 

Limited Liability Company 
 With
registered office at Generaal De Wittelaan L11 A3, 2800 Mechelen, Belgium 
 Judicial district of Mechelen (Belgium) 

Registered with the Register of Legal Entities under number 0466.460.429 

********************* 

COORDINATION OF THE ARTICLES OF ASSOCIATION 

PER 19 MAY 2015 

********************* 

Incorporated pursuant to a deed enacted by notary public Aloïs VAN DEN BOSSCHE, in
Vorselaar, on 30 June 1999, published in the annexes to the Belgian State Gazette under number 990717-412. 
 [This paragraph is an
abbreviation from the Dutch version] The articles of association were modified at several occasions, and most recently pursuant to a deed enacted by notary public Matthieu DERYNCK on 19 May 2015, filed for publication in
the annexes to the Belgian State Gazette. 

  

			
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 This document is an English translation of a document prepared in Dutch. It is made for purposes of
convenience. In preparing this translation, an attempt has been made to translate as literally as possible without jeopardizing the overall continuity of the text. Inevitably, however, differences may occur in translation and if they do, the Dutch
text will govern by law. In this translation, Belgian legal concepts are expressed in English terms and not in their original Dutch terms. The concepts concerned may not be identical to concepts described by the terms as such terms may be understood
under the laws of other jurisdictions. The history of modification of the articles of association, as set forth on this first page, is an abbreviation from the Dutch text and indicates only the latest modification. 

Title I – Name – Registered Office – Purpose – Duration 

 

	1	Form and Name 

 The company has the form of a limited liability company
(“naamloze vennootschap”/“société anonyme”) and has the capacity of a company that calls or has called upon public savings within the meaning of the Companies Code. 

The company bears the name “GALAPAGOS”. This name should always be preceded or followed by the words “naamloze
vennootschap” or the abbreviation “NV”, or in French “société anonyme” or the abbreviation “SA”, in all deeds, invoices, announcements, publications, letters, orders and other documents issued by the
company. 
  

	2	Registered Office 

 The company’s registered office shall be located in the Flemish
Region or in the Brussels Region. The board of directors can relocate the registered office to any other place in the Flemish Region and the Brussels Region without a modification of the articles of association or a decision of the
shareholders’ meeting of the company being required. It caters for the publication of each change of the registered office of the company in the Annexes to the Belgian State Gazette. 

The board of directors is also empowered to incorporate branch offices, corporate seats and subsidiaries in Belgium and abroad. 

 

	3	Purpose 

 The company’s purpose consists of: 

 

	 	(a)	the development, the construction and exploitation of gene libraries for functional genomics research; 

  

	 	(b)	the research for the development of health products for human beings and animals, pharmaceutical products and other products relating thereto; 

 

	 	(c)	the development, testing, scaling up, and exploitation of gene therapy procedures, as well as the development, evaluation and exploitation of clinical applications of such procedures; 

  

			
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	 	(d)	for its own account or for the account of third parties, the performance of research in the field of or in connection with biological and industrial technology, genetics and human and animal life in general;

  

	 	(e)	the acquisition, sale and licensing of patents, trademarks, industrial and intellectual property, whether or not secret, and licenses. 

For such purposes the company may, in Belgium and abroad, acquire or lease any license, movable or immovable property necessary or useful for
its commercial or industrial purpose, operate, sell or lease same, build factories, establish subsidiaries and branches, and establish premises. It may engage in all operations with banks, post cheque, invest capital, contract or grant loans and
credit facilities, whether or not mortgaged. The company may, by means of contribution, participation, loans, credit facility, subscription of shares, acquisition of shares and other commitments, participate in other companies, associations or
enterprises, both existing as to be incorporated, and whether or not having a purpose similar to the purpose of the company. The company may merge with other companies or associations. 

The company may incorporate subsidiaries both under Belgian as under foreign law. 

The company may acquire or establish any property that is necessary or useful for its operations or its corporate purpose. 

 

	4	Duration 

 The company is incorporated for an unlimited duration. 

Except for dissolution by court, the company can only be dissolved by the extraordinary shareholders’ meeting in accordance with the
provisions of the Companies Code concerning the winding-up of companies. 
 Title II – Capital 

 

	5	Registered Capital 

 The registered capital amounts to EUR 207,747,029.16. It is
represented by 38,403,176 shares without nominal value. 
 Each share represents an equal part of the registered capital of the company. 

 

	6	Amendment of the Registered Capital 

 The shareholders’ meeting, deliberating in
accordance with the provisions applicable to a modification of the articles of association, may increase or reduce the registered capital. The issuance price and the conditions of the issue of new shares are determined by the shareholders’
meeting upon a proposal by the board of directors. 
 The shares that are subscribed in cash, are to be offered first to the shareholders, in
proportion to the part of the registered capital that is represented by their shares during a period of fifteen days as of the day the subscription is opened. 

  

			
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 The shareholders’ meeting determines the subscription price and the manner in which the
preferential subscription right may be exercised. 
 The shareholders’ meeting or, as the case may be, the board of directors in the
framework of the authorized capital, may decide to increase the registered capital for the benefit of the employees, subject to the provisions of article 609 of the Companies Code. 

Subject to the relevant provisions set forth by law, the preferential subscription right may, in the interest of the company, be restricted or
cancelled by the shareholders’ meeting in accordance with the provisions of article 596 of the Companies Code. 
 In the event of a
reduction of the registered capital, the shareholders who find themselves in equal circumstances are to be treated equally, and the applicable provisions set forth by law are to be respected. 

 

	7	Call for Paying Up 

 The board of directors decides at its discretion on the calling for
paying up on shares. The commitment to pay up on a share is unconditional and indivisible. 
 In the event that shares that are not fully
paid up belong in joint ownership to several persons, each of them is liable for the paying up of the full amount of the payments that are due and called for. 

In case a shareholder has not made the paying up on his shares that is called for within the period of time set by the board of directors, the
exercise of the voting rights attached to such shares are suspended by operation of law as long as such paying up is not made. Furthermore, the shareholder shall, by operation of law, bear an interest equal to the legal interest increased by two
percent as of the due date on the amount of funds called for and not paid up. 
 In the event the shareholder does not act upon a notice sent
by the board of directors by registered letter upon expiry of the period of time set by the board of directors, the latter may have the relevant shares sold in the most appropriate manner, without prejudice to the right of the company to claim from
the shareholder the funds not paid up as well as compensation for damages. 
 The proceeds of such sale, up to an amount equal to the sum of
the called up funds, the interests and the incurred costs, will belong to the company. The exceeding proceeds, if any, will be delivered to the defaulting shareholder, provided that he is not a debtor of the company for any other reason. If the
proceeds of the sale are not sufficient to cover the obligations of the defaulting shareholder, the latter will owe the company for the difference. 

The shareholder may not pay up his shares without the prior approval of the board of directors. 

  

			
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	8	Notification of Important Interests 

 For the application of the articles 6 through 17 of
the Law of 2 May 2007 relating to the disclosure of important interests, the applicable quota are established at five percent and multiples of five percent. 
  

	9	Nature of the Shares 

 The shares are registered shares until they are fully paid up. The
fully paid up shares are registered shares or dematerialized shares, according to the preference of the shareholder. The company may issue dematerialized shares, either by a capital increase or by the conversion of existing registered shares into
dematerialized shares. Each shareholder may ask the conversion of his shares, by written request to the board of directors and at its own cost, into registered shares or into dematerialized shares. 

The bearer shares that have been issued by the company and that are on a securities account on 1 January 2008, exist in dematerialized
form as of that date. As of 1 January 2008, the other bearer shares will also automatically become dematerialized to the extent that they are credited to a securities account. Pursuant to the Law of 14 December 2005 abolishing bearer
securities, the bearer shares that were not yet converted by 31 December 2013 at the latest, have been automatically converted into dematerialized shares. These shares have been credited to a securities account in the name of the company,
without the company acquiring the capacity of owner of such shares. The exercise of the rights attaching to these shares shall be suspended until a person that has been able to lawfully evidence his capacity of titleholder, requests and obtains that
the relevant shares are registered in his name in the register of registered shares or credited to a securities account. 
  

	10	Exercise of Rights Attached to the Shares 

 Vis-à-vis the company, the shares are
indivisible. If a share belongs to different persons or if the rights attached to a share are divided over different persons, or if different persons hold the rights in rem to the shares, the board of directors may suspend the exercise of the rights
attached thereto until one single person has been designated as shareholder vis-à-vis the company and notification thereof has been given to the company. All convocations, notifications and other announcements by the company to the different
persons entitled to one share are made validly and exclusively to the designated common representative. 
  

	11	Acquisition and Disposal of Own Shares by the Company 

 The shareholders’ meeting
may resolve to acquire the company’s own shares or to dispose thereof in accordance with article 620 and following of the Companies Code. 
  

	12	Bonds and Warrants 

 The board of directors is entitled to issue bonds at the conditions
it deems appropriate, whether or not such bonds are guaranteed by a mortgage or otherwise. 
 The shareholders’ meeting may resolve to
issue convertible bonds or warrants in accordance with the provisions of the Companies Code. 

  

			
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 Title III – Administration and supervision 

 

	13	Composition of the Board of Directors 

 The board of directors is composed of minimum
five and maximum nine members, who need not be a shareholder, of which at least three are independent directors. The independent directors need to meet the criteria determined in article 524 §4 of the Companies Code. Half of the members of the
board are non-executive directors. 
 The directors are appointed by the shareholders’ meeting. The duration of their mandate may not
exceed four years. Directors whose mandate has come to an end may be reappointed. 
 However, as long as the shareholders’ meeting does
not fill a vacancy, for any reason whatsoever, the directors whose mandate has expired remain in their position. 
 The shareholders’
meeting may dismiss a director at any time. 
 If a legal entity is appointed as director of the company, such legal entity shall appoint a
permanent representative, in accordance with the applicable legal provisions. 
  

	14	Casual Vacancy 

 In the event of a casual vacancy in the board of directors, the
remaining directors have the right to temporarily fill such vacancy until the shareholders’ meeting appoints a new director. To this end, the appointment shall be put on the agenda of the first following shareholders’ meeting. Each
director appointed this way by the shareholders’ meeting shall complete the mandate of the director he replaces, unless the shareholders’ meeting decides otherwise. 
  

	15	Chair 

 The board of directors elects a chairman from among its members. 

 

	16	Meetings of the Board of Directors 

 The board of directors is convened by its chairman
or by two directors or by a person entrusted with the day-to-day management, each time the interests of the company so require. 
 The
notices mention the place, date, hour and agenda of the meeting and, except in the event of emergency (which is to be motivated in the minutes), are sent in writing at least four calendar days prior to the meeting. 

If the chairman is unable to attend, the board of directors is chaired by the director entrusted with the day-to-day management. 

The validity of the convening cannot be challenged if all directors are present or validly represented. 

  

			
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	17	Deliberation 

 The board of directors may validly deliberate only if at least half of its
members are present or represented. If this quorum is not satisfied, a new meeting may be convened with the same agenda, which will be able to validly deliberate and resolve provided that at least two directors are present or represented. 

Board members can be present at the meeting of the board of directors by electronic communication means, such as, among others, phone- or
videoconference, provided that all participants to the meeting can communicate directly with all other participants. The same applies to meetings of the board of directors to be held in the presence of a notary public, it being understood, however,
that in such case at least one director or the meeting’s secretary shall physically attend the meeting in the presence of the notary public. The minutes of the meeting shall mention the manner in which the directors were present. 

With respect to items that were not mentioned in the agenda, the board of directors can deliberate validly only with the consent of the entire
board of directors and insofar all directors are present in persona. Such consent is deemed to be given if no objection is made according to the minutes. 

Each director can give a power of attorney to another director to represent him at a meeting of the board of directors, by normal letter,
telegram, telex, telefax or any other means of communication replicating a printed document. 
 The resolutions of the board of directors are
taken by majority of the votes cast. Blank and invalid votes are not included in the votes cast. In case of a tie, the chairman has the casting vote. 

In exceptional cases, where the urgency of the matter and the interest of the company so require, board resolutions may be approved by
unanimous written consent of the directors. 
 This procedure may, however, not be used for the drawing-up of the annual accounts, the use of
the authorized capital or for any other matter that is excluded by the articles of association. 
 The directors need to respect the
provisions and formalities set forth in article 523 of the Companies Code. 
 If at a meeting of the board of directors the required quorum
to validly deliberate is present and one or more of the directors need to abstain pursuant to article 523 of the Companies Code, then the resolutions are validly taken by a majority of the other directors present or represented, even if as a result
of such abstentions the abovementioned quorum is no longer satisfied. 

  

			
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 If all directors need to abstain according to article 523 of the Companies Code the board of
directors must promptly convene a shareholders’ meeting, which shall resolve itself or appoint an ad hoc director, which will be entrusted with the taking of the decision. 

All decisions of the board of directors, or all acts performed to execute a decision that relates to: 

 

	 	(a)	the relationship of the company with another company that is related to the company with the exception of the own subsidiaries of the company; 

 

	 	(b)	the relationship between a subsidiary of the company and the companies related to such subsidiary with the exception of the own subsidiaries of the company; 

should, in accordance with the provisions of article 524 §1 through §3 of the Companies Code, be subject to the prior assessment of a
committee of three independent directors, assisted by one or more independent experts appointed to this end by the committee of three independent directors, except for: 
  

	 	(i)	the usual decisions and acts that take place at conditions and against guarantees that are market practice for similar transactions; 

 

	 	(ii)	decisions and acts representing less than one percent (1%) of the net assets of the company as they appear in the consolidated annual accounts. 

 

	18	Minutes 

 The deliberations of the board of directors are enacted in minutes that are
signed by the chairman and by the members of the board of directors who wish to do so. The powers of attorney are attached to the minutes. If a member expressly refuses to sign the minutes, this shall be reflected in the minutes with the motivation
of such refusal. 
 The copies or extracts, to be submitted in legal proceedings or otherwise, shall be signed by two directors or by a
person entrusted with the day-to-day management. This authority may be delegated to a proxy. 
  

	19	Powers of the Board of Directors 

 The board of directors is vested with the most
extensive powers to perform all acts necessary or useful for the realization of the purpose of the company. The directors shall act as a collegial body. 

It is authorized to perform all acts that are not reserved by law or by the articles of association to the shareholders’ meeting. 

The board of directors may delegate part of its powers for specific and determined matters to a proxy, which needs not be a shareholder or a
director. 

  

			
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	20	Remunerations of the Directors 

 The shareholders’ meeting may grant fixed and
variable remunerations to the directors. The board of directors is empowered to distribute amongst the directors the global remuneration granted by the shareholders’ meeting. 

 

	21	Delegation of Authorities 

  

	 	(1)	Executive committee 

 The board of directors may, upon a proposal by the director entrusted with
the day-to-day management, delegate its management powers to an executive committee, provided however that such delegation may relate neither to the company’s general policy nor to those matters which are reserved by law to the board of
directors. When an executive committee is established, the board of directors is entrusted with the supervision of such committee. 
 This
delegation of powers can be revoked at any time. 
 If one or more members of the executive committee have an interest of patrimonial nature
that is conflicting with a decision or an act that belongs to the authority of the executive committee, such decision will be taken by the board of directors. 

The executive committee consists of two or more persons, who need not be directors and who are appointed by the board of directors, which also
determines the terms and conditions of their appointment, dismissal, remuneration, the duration of their mandate and the operating procedures of the executive committee. 

The establishment of an executive committee is enforceable vis-à-vis third parties, subject to the conditions set forth in the Companies
Code. The publication contains an explicit reference to the relevant article of the Companies Code. 
 Possible restrictions or internal
allocations of activities that the members of the executive committee have agreed upon cannot are not enforceable vis-à-vis third parties, even if they have been published. 

 

	 	(2)	Day-to-day management 

 The board of directors is authorized to delegate the day-to-management
as described in article 525 of the Companies Code and the representation powers pertaining to such management to one or more persons, who need not be directors. The board of directors appoints and revokes the person(s) entrusted with such management
and determines the remuneration linked to this mandate. If the person to whom the day-to-day management is delegated also exercises a directorship within the company, this person is called managing director (“gedelegeerd
bestuurder”). If this person is not a director, this person is called general manager (“algemeen directeur”). 

  

			
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 If several persons are appointed, they form a board that is called management committee
(“executief comité”). The board of directors determined the operating procedures of the management committee. 

Limitations of the representation powers of the members of the management committee with regard to the day-to-day management, other than those
relating to the joint signatory authority, are not enforceable vis-à-vis third parties, even if they are published. 
  

	 	(3)	Special powers 

 The board of directors, the executive committee or the person(s) entrusted with
the day-to-day management may, within the limits of the powers delegated to them, grant specific and determined powers to one or more persons of their choice. 
  

	22	Representation 

  

	 	(1)	General authority 

 Without prejudice to the general representation authority of the board of
directors acting as a collegial body, the company is validly represented in dealings with third parties and in legal proceedings by two directors acting jointly or by one director acting jointly with a member of the executive committee who do not
have to submit evidence of a prior resolution of the board of directors. 
  

	 	(2)	Delegated management authorities 

 Without prejudice to the aforementioned representation
authority the company is also validly represented, within the limits of the powers that can legally be transferred to the executive committee, by two members of the executive committee acting jointly. 

Within the limits of the day-to-day management, the company is furthermore validly represented in dealings with third parties and in legal
proceedings by the managing director(s) acting jointly or individually in accordance with the delegation by the board of directors. 

Moreover, the company is validly bound by special attorneys-in-fact within the limits of the powers granted to them. 

When the company is appointed as director, manager, member of the executive committee or liquidator of another company, it will appoint amongst
its shareholders, directors or employees a permanent representative who is entrusted with the execution of the mandate for and on behalf of the company. 

  

			
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	23	Committees within the Board of Directors 

 The board of directors establishes an audit
committee and a remuneration and nomination committee. 
 The board of directors may create amongst its members, and under its
responsibility, one or more advisory committees, of which it determines the composition and the missions. 
  

	24	Control 

 To the extent required by law, the control of the financial situation, of the
annual accounts and of the regularity from point of view of the Companies Code and the articles of association of the activities to be reflected in the annual accounts, are assigned to one or more statutory auditors
(“commissarissen”) who are appointed by the shareholders’ meeting amongst the members of the Institute of Company Auditors (“Instituut van Bedrijfsrevisoren”) and who carry the title of statutory auditor
(“commissaris”). 
 The shareholders’ meeting determines the number of statutory auditors and fixes their remuneration.

 The statutory auditors are appointed by the shareholders’ meeting, in accordance with the applicable legal provisions, for a
renewable period of three years. On penalty of indemnity, they may be dismissed during their mandate by the shareholders’ meeting for legal reasons only, subject to compliance with the procedure described in the Companies Code. 

The expiring mandate of a statutory auditor ceases immediately after the annual shareholders’ meeting. 

In the absence of a statutory auditor whilst such appointment is required by law or when all statutory auditors are in the impossibility to
perform their mandates, the board of directors immediately convenes the shareholders’ meeting to arrange for their appointment or replacement. 

The statutory auditors are granted a fixed remuneration by the shareholders’ meeting; this amount is established at the beginning of their
mandate. This amount may be changed only by consent of the parties. 
  

	25	Task of the Statutory Auditor 

 The statutory auditors have, jointly or severally, an
unlimited right of supervision over all activities of the company. They may review all books, correspondence, minutes and in general all documents of the company at the premises of the company. 

Each semester, the board of directors provides them with a status report summarizing the assets and liabilities of the company. 

The statutory auditors may arrange to be assisted in the performance of their task, at their costs, by employees or other persons for whom they
are responsible. 

  

			
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 Title IV – Shareholders’ meetings 

 

	26	Composition and Authorities 

 The regularly composed shareholders’ meeting
represents the entirety of the shareholders. The resolutions of the shareholders’ meeting are binding upon all shareholders, even those absent or those who voted against. 

 

	27	Meeting 

 The annual shareholders’ meeting is held on the last Tuesday of the month
of April at 2:00 p.m. CET. If such day is a public holiday in Belgium or in The Netherlands, the shareholders’ meeting will be held on the following day that is a business day in both Belgium and The Netherlands, at
2:00 p.m. CET. 
 The annual shareholders’ meeting deals with the annual accounts and, after approval thereof, resolves by
separate votes on the release from liability of the directors and the statutory auditor. 
 An extraordinary shareholders’ meeting may
be convened each time the interest of the company so requires and is to be convened each time shareholders representing together one fifth of the registered capital so request. 

The shareholders’ meetings take place at the registered office of the company or at any other place that is mentioned in the convening
notice. 
  

	28	Notice 

 The shareholders’ meeting assembles pursuant to a
convening notice issued by the board of directors or by the statutory auditor(s). 
 The invitations to a shareholders’ meeting are made
in accordance with article 533 §2, article 535 and other provisions of the Companies Code. 
 The convening notice for a
shareholders’ meeting contains at least the information set forth in article 533bis §1 of the Companies Code. 
 On the day
of publication of the convening notice and uninterruptedly until the day of the shareholders’ meeting, the company makes available to its shareholders the information set forth in article 533bis §2 of the Companies Code. This
information remains accessible on the company’s website for a period of five years as from the date of the shareholders’ meeting to which it relates. 

The foregoing does not prejudice the possibility of one or more shareholders possessing together at least 3% of the registered capital to have
items to be dealt with put on the agenda of the shareholders’ meeting and table proposals of resolutions with respect to items on the agenda or items to be put on the agenda, subject to compliance with the relevant provisions of
article 533ter of the Companies Code. This does not apply in case a 

  

			
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shareholders’ meeting is called with a new notice because the quorum required for the first convening was not satisfied, and provided that the first notice complied with the provisions of
the law, the date of the second meeting is mentioned in the first notice and no new item is put on the agenda. The company must receive such requests ultimately on the 22nd day before the date of
the shareholders’ meeting. The items to be dealt with and the proposed resolutions pertaining thereto to be added to the agenda, as the case may be, will be published in accordance with the provisions of the Companies Code. If a proxy form has
already been submitted to the company before the publication of the completed agenda, the proxy holder will need to comply with the relevant provisions of the Companies Code. The items to be dealt with and the proposed resolutions pertaining thereto
that have been added to the agenda pursuant to the foregoing, shall only be discussed if all relevant provisions of the Companies Code have been complied with. 
  

	29	Admission 

 The right to participate in a shareholders’ meeting and to vote is only
granted based on an accounting registration of the shares on the name of the shareholder, on the 14th day before the shareholders’ meeting, at midnight (CET), either by their registration in
the register of registered shares of the company, or by their registration on the accounts of a recognized account holder or of a clearing institution, irrespective of the number of shares the shareholder possesses at the day of the
shareholders’ meeting. 
 The day and time referred to in the first paragraph form the record date. 

The shareholder notifies the company, or the person appointed by the company for this purpose, ultimately on the 6th day before the date of the meeting, that he wants to participate in the shareholders’ meeting. 

The financial intermediary or the recognized account holder or the clearing institution provides the shareholder with a certificate evidencing
the number of dematerialized shares registered in the shareholder’s name on his accounts on the record date, for which the shareholder has indicated his desire to participate in the shareholders’ meeting. 

In a register designated by the board of directors, the name and address or registered office of each shareholder who has notified the company
of its intention to participate in the shareholders’ meeting are noted, as well as the number of shares he possessed on the record date and for which he has indicated to be participating in the shareholders’ meeting, and the description of
the documents demonstrating that he was in possession of the shares on said record date. 
 An attendance list, mentioning the names of the
shareholders and the number of shares they represent, must be signed by each of them or by their proxy holders before entering the meeting. 

The holders of profit sharing certificates (“winstbewijzen/parts bénéficiaires”), non-voting shares, bonds,
warrants or other securities issued by the company, as well as the holders of certificates issued with collaboration of the company and representing securities issued by 

  

			
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the company (if any such exist), may attend the shareholders’ meeting with advisory vote insofar permitted by law. They may only participate in the vote in the cases determined by law. They
are in any event subject to the same formalities as those imposed on the shareholders, with respect to notice of attendance and admission, and the form and submission of proxies. 

 

	30	Representation – Remote Voting – Remote Attendance 

 Each shareholder with
voting rights may participate in the meeting in person or may have himself represented by a proxy holder in accordance with the provisions of the Companies Code. 

A person acting as proxy holder may carry a proxy of more than one shareholder; in such case he may vote differently for one shareholder than
for another shareholder. 
 The appointment of a proxy holder by a shareholder must be in writing or by means of an electronic form and must
be signed by the shareholder, as the case may be with an electronic signature within the meaning of the applicable Belgian law provisions. 

The notification of the proxy to the company must be in writing, as the case may be by electronic means, to the address mentioned in the
convening notice. The company must receive the proxy ultimately on the 6th day before the date of the meeting. 

The board of directors may determine the text of the proxies provided that the liberty of the shareholder to vote must be respected and that
the modalities do not diminish the shareholder’s rights. 
 The board of directors has the possibility to provide in the convening
notice that the shareholders can vote remotely, prior to the shareholders’ meeting, by letter or electronically, by means of a form made available by the company. 

In case of remote voting by letter, any forms that have not been received by the company ultimately on the 6th day before the date of the meeting shall not be taken into account. 
 In case of remote
voting by electronic means, assuming the convening notice allows this, the modalities permitting the shareholder to vote by such means will be established by the board of directors, who will ensure that the applied communication means are able to
implement the mandatory legal statements, to supervise compliance with the required timing of receipt and to control the capacity and identity of the shareholder. Electronic voting is possible until the day prior to the shareholders’ meeting.

 The shareholder who uses distant voting, either by letter, or, as the case may be, by electronic way, must comply with the requirements
for admission as set forth in article 29 of the articles of association. 
 The board of directors can offer the shareholders the possibility
to participate in the shareholders’ meeting remotely, by means of a communication mechanism made available by the company. With respect to the compliance with the conditions relating to attendance

  

			
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and majority, the shareholders who participate in the shareholders’ meeting by such means, as the case may be, are deemed to be present at the location where the shareholders’ meeting
is held. If the board of directors offers the possibility to participate remotely in the shareholders’ meeting by such means, the board determines the conditions applicable hereto in accordance with the relevant provisions of the Companies
Code. The board of directors may extend this possibility (if it is offered) to the holders of profit sharing certificates, bonds, warrants or certificates issued with collaboration of the company, taking into account the rights attached thereto and
in accordance with the relevant provisions of the Companies Code. 
  

	31	Bureau 

 Every shareholders’ meeting is chaired by the chairman of the board of
directors or, absent any chairman or if the chairman cannot attend, by another director thereto appointed by his colleagues. 
 The chairman
of the meeting appoints the secretary, who does not necessarily need to be shareholder or director. 
 If the number of shareholders so
allows the shareholders’ meeting elects two vote counters. The directors who are present complete the bureau. 
  

	32	Adjournment 

 The board of directors has the right to adjourn each shareholders’
meeting one time, for five weeks, irrespective of the agenda items and without having to justify this decision. The board may use this right at any time, but only after the opening of the meeting. The decision of the board must be communicated to
the assembly before the closing of the meeting and must be mentioned in the minutes. Such adjournment nullifies every decision taken. The formalities for admission need to be complied with again. The existing proxies and permissions to attend the
adjourned meeting cease to be valid. At the meeting that will be held in continuation of the adjourned meeting the same agenda will be entirely tabled again and finished. 
  

	33	Number of Votes – Exercise of the Voting Right 

 Each share carries one vote. 

 

	34	Deliberation 

 The shareholders’ meeting cannot deliberate on items that are not
mentioned in the agenda, unless all shareholders are present or represented at the meeting and they unanimously decide to deliberate on these items. 

The directors answer the questions they are asked by the shareholders, during the meeting or in writing, relating to their report or to the
agenda items, insofar the communication of information or facts is not of such nature that it would be detrimental to the business interests of the company or to the confidentiality to which the company or its directors are

  

			
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bound. The statutory auditors answer the questions they are asked by the shareholders, during the meeting or in writing, relating to their report, insofar the communication of information or
facts is not of such nature that it would be detrimental to the business interests of the company or to the confidentiality to which the company, its directors or the statutory auditors are bound. In case several questions relate to the same subject
matter, the directors and the statutory auditors may respond in one answer. As soon as the convening notice is published, the shareholders may ask their questions in writing, which will be answered during the meeting by the directors or the
statutory auditors, as the case may be, insofar such shareholders have complied with the formalities to be admitted to the meeting. The questions may also be directed to the company by electronic way via the address that is mentioned in the
convening notice for the shareholders’ meeting. The company needs to receive these written questions ultimately on the 6th day before the meeting. 

Except when otherwise provided for by legal provisions or by the articles of association, the resolutions are taken by simple majority of the
votes cast, irrespective of the number of shares represented at the meeting. Blank and invalid votes are not included in the votes cast. 

If for a resolution pertaining to an appointment no candidate obtains the absolute majority of the votes cast, a new vote will be organized
between the two candidates who obtained the most votes. If such new vote results in a tie, the elder candidate is elected. 
 The votes cast
during the meeting are taken by raising hands or by calling off names, unless the shareholders’ meeting decides otherwise by simple majority of the votes cast. 

A change of the articles of association can only be validly deliberated and resolved by an extraordinary shareholders’ meeting in the
presence of a notary and in compliance with the provisions of the articles 558 and following of the Companies Code. 
  

	35	Minutes 

 The minutes of the shareholders’ meeting are signed by the members of the
bureau and by the shareholders who ask to do so. The attendance list, and as the case may be, reports, proxies and/or written votes shall remain attached to the minutes. 

Except when otherwise provided for by law, extracts to be submitted in legal proceedings or otherwise, are signed by one or more directors.

 The minutes shall mention, for every resolution, the number of shares for which valid votes are cast, the percentage of the registered
capital that these shares represent, the total number of votes validly cast, and the number of votes cast in favor or against each resolution, as well as the number of abstentions, if any. In the minutes of the shareholders’ meetings with
possibility of remote attendance (if this possibility is offered) the technical problems and incidents (if any) that have hindered or disturbed the participation by electronic means, shall be mentioned. This information will be published by the
company on its website, within 15 days as from the shareholders’ meeting. 

  

			
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 Title V – Annual Accounts – Distribution of Profits 

 

	36	Annual Accounts 

 The financial year commences on the first of January and ends on the
thirty first of December of each calendar year. 
 At the end of each financial year the board of directors draws up an inventory as well as
the annual accounts. To the extent required by law, the directors also draw up a report in which they account for their management. 
 This
report contains a comment on the annual accounts in which a true overview is given of the operations and of the position of the company, as well as the information prescribed by article 96 of the Companies Code. 

 

	37	Approval of the Annual Accounts 

 The annual shareholders’ meeting takes note of, as
the case may be, the annual report and the report of the statutory auditor(s) and resolves on the approval of the annual accounts. 
 After
approval of the annual accounts, the shareholders’ meeting resolves, by separate vote, on the release from liability of the directors and, as the case may be, of the statutory auditor(s). This release from liability is only valid if the annual
accounts do not contain omissions or false statements which cover up the true situation of the company, and, with respect to acts in violation of the articles of association, only if these acts are specifically pointed out in the convening notice.

 The board of directors ensures that the annual accounts and, as the case may be, the annual report and the other documents mentioned in
article 100 of the Companies Code are filed with the National Bank of Belgium within thirty days after the approval of the annual accounts. 
  

	38	Distribution 

 Each year an amount of five percent (5%) of the net profits mentioned
in the annual accounts is allocated to constitute a legal reserve; such allocation ceases to be mandatory once the legal reserve amounts to one tenth of the registered capital. 

Upon a motion of the board of directors, the shareholders’ meeting resolves with simple majority of the votes cast on the destination of
the balance of the net profits, subject to the provisions of the Companies Code. 
  

	39	Dividend Payments 

 The payment of dividends occurs at the date and place determined by
the board of directors. 
 Subject to the provisions of the Companies Code, the board of directors may distribute interim dividends out of
the current financial year’s results. 

  

			
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 Title VI – Dissolution – Winding-Up 

 

	40	Early Dissolution 

 When, as a result of losses incurred, the net assets have decreased
to a level of less than half of the registered capital, the directors must submit a motion on the dissolution of the company and, as the case may be, other measures to the shareholders’ meeting, who will deliberate in accordance with article
633 of the Companies Code. 
 When the net assets, as a result of losses incurred, have decreased to a level of less than one fourth of the
registered capital, a resolution to dissolve the company can be taken by one fourth of the votes cast at the shareholders’ meeting. 

When the net assets have decreased to a level of less than the legal minimum amount, every party having an interest may petition the court to
dissolve the company in accordance with article 634 of the Companies Code. As the case may be the court may allow the company a period to regularize its situation. 
  

	41	Dissolution 

 A motion to dissolve the company voluntarily can be resolved only by an
extraordinary shareholders’ meeting and is subject to the applicable legal provisions. 
 After its winding-up, and until the closing of
its liquidation, the company continues to exist by operation of law as a legal entity for the purposes of its liquidation. 
  

	42	Winding-Up 

 In case of winding-up of the company, for any reason or at any time
whatsoever, the winding-up is performed by liquidators appointed by the shareholders’ meeting, and absent such appointment, the winding-up is performed by the board of directors acting in capacity of winding-up committee. 

Except if otherwise resolved, the liquidators act jointly. To this effect, the liquidators have the most extensive powers in accordance with
the articles 186 and following of the Companies Code, subject to restrictions imposed by the shareholders’ meeting. 
 The
shareholders’ meeting determines the compensation of the liquidators and their powers. 
  

	43	Apportionment 

 Following settlement of all debts, charges and costs of the liquidation,
the net assets are first used to pay back, in cash or in kind, the fully paid-up and not yet paid back amount of the shares. 
 The balance,
as the case may be, is divided in equal parts among all shares. The profit sharing certificates are not entitled to a part of the liquidation balance. 

If the net proceeds are not sufficient to pay back all shares, the liquidators will first pay back these shares that are paid-up to a higher
extent until they are at a level equal to the shares that are paid-up to a lesser extent, or they call for an additional paying-up of capital for the latter shares. 

  

			
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 Title VII – General Provisions 

 

	44	Election of Domicile 

 Each director, executive and liquidator having its official
residence abroad, elects domicile for the duration of his mandate at the registered office of the company, where writs of summons and notifications concerning company matters and the responsibility for its management can be validly made, with the
exception of the notice to be made pursuant to these articles of association. 
 The holders of registered shares are obliged to notify the
company of every change in domicile. Absent such notification, they are deemed to have elected domicile at their previous domicile. 
  

	45	Legal Provisions Incorporated in these Articles of Association 

 The provisions of these
articles of association that literally set forth the contents of the provisions of the Companies Code, are mentioned for information purposes only and do not acquire thereby the character of statutory provision (“statutaire
bepaling”). 
  

	46	Applicable Law 

 For all matters that are not expressly regulated in these articles of
association, or for the legal provisions from which would not be deviated validly in these articles of association, the provisions of the Companies Code and the other provisions of Belgian law apply. 

 

	47	Indemnification 

 To the extent permitted by law, the company will be permitted to
indemnify its directors, employees and representatives for all damages they may be due, as the case may be, to third parties as a result of breach of their obligations towards the company, managerial mistakes and violations of the Companies Code,
with the exclusion of damages that are due as a result of gross or intentional misconduct. 
 Temporary provisions of the articles of
association 
  

	(1)	Authorized capital 

 The board of directors has been granted the authority to increase the
registered capital of the company, in accordance with articles 603 through 608 of the Companies Code, in one or several times, to the extent set forth hereafter. This authorization is valid for a period of five years from the date of this
authorization, i.e. 23 May 2011. 

  

			
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 Without prejudice to more restrictive rules set forth by law, the board of directors may
increase the registered capital of the company in one or several times with an amount up to €35,647,692.61, i.e. twenty five per cent (25%) of the registered capital existing at the moment of the convening to the shareholders’ meeting
granting this authority. 
 Without prejudice to the previous paragraph and without prejudice to more restrictive rules set forth by law, the
board of directors may increase the registered capital of the company in one or several times with an amount up to €142,590,770.44, i.e. one hundred per cent (100%) of the registered capital existing at the moment of the convening to
the shareholders’ meeting granting this authority, upon a unanimous resolution of the board of directors at which all directors are present or represented and relating to (i) the entire or partial financing of a transaction through the
issue of new shares of the company, whereby “transaction” is defined as a merger or acquisition (in shares and/or cash), a corporate partnership and/or an in-licensing deal, (ii) the issuance of warrants in connection with the
company’s remuneration policy for its and its subsidiaries’ employees, directors and independent advisors, and (iii) the defense of the company against a hostile take-over bid, and (iv) strengthen the cash position of the
company. The maximum amount with which the registered capital can be increased in the framework of the authorized capital as mentioned in this paragraph, is to be reduced by the amount of any capital increase realized in the framework of the
authorized capital as mentioned in the previous paragraph. 
 The capital increases within the framework of the authorized capital may be
achieved by the issuance of shares (with or without voting rights, and as the case may be in the context of warrant plans for the company’s or its subsidiaries’ personnel, directors and/or independent advisors), convertible bonds and/or
warrants exercisable by contributions in cash or in kind, with or without issuance premium, and also by the conversion of reserves, including issuance premiums. Aforementioned warrant plans can provide that, in exceptional circumstances (among
others in the event of a change in control of the company or decease), warrants can be exercised before the third anniversary of their award, even if the beneficiary of such warrants is a person referred to in article 520ter, 524bis or 525 of the
Belgian Companies Code. 
 When increasing the registered capital within the limits of the authorized capital, the board of directors may in
the company’s interest restrict or cancel the shareholders’ preferential subscription rights, even if such restriction or cancellation is made for the benefit of one or more specific persons other than the employees of the company or its
subsidiaries. 
 The board of directors can ask for an issuance premium when issuing new shares in the framework of the authorized capital.
If the board of directors decides to do so, such issuance premium is to be booked on a non-available reserve account that can only be reduced or transferred by a decision of the shareholders’ meeting adopted in the manner required for amending
the articles of association. 

  

			
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 The board of directors is expressly authorized during a period of three years as of the date
of the shareholders’ meeting which granted this authorization, i.e. 23 May 2011, to increase the company’s registered capital within the context of the authorized capital by contributions in kind or in cash with restriction
or cancellation of the shareholders’ preferential subscription rights, even after the Financial Services and Markets Authority (FSMA) has notified the company of a public take-over bid for the company’s shares, provided that the relevant
provisions of the Companies Code are complied with, among others that the number of shares issued under such capital increase does not exceed one tenth of the outstanding shares representing the registered capital of the Company prior to such
capital increase. The authorization referred to above may be renewed. 
 The board of directors is authorized to amend the articles of
association of the Company to bring them in accordance with the capital increases that have been decided within the framework of the authorized capital or to instruct a notary public to do so. 

 

	(2)	Acquisition of own shares 

 The shareholders’ meeting of 23 May 2011 expressly
authorized the board of directors to acquire its own shares or profit sharing certificates or certificates and to dispose thereof in accordance with the provisions of the Companies Code, if such acquisition is necessary to avoid a serious and
imminent harm to the company. This authorization is valid for a period of three years from the publication of the aforementioned resolution in the Annexes to the Belgian State Gazette. This authorization applies under the same conditions to the
acquisition of the shares or profit sharing certificates or certificates of the company, realized by one of its subsidiaries as meant in article 627 of the Companies Code. 

The shareholders’ meeting of 23 May 2011 authorized the board of directors to acquire maximum permitted number of shares
pursuant to article 620 of the Companies Code by purchase or exchange at a price that cannot be lower than zero point zero five euro (€0.05) per share and not higher than hundred ten percent (110%) of the price at which such shares
were quoted on the Brussels stock exchange on the day preceding the day of the purchase or exchange. 
 This authorization is valid for a
period of eighteen (18) months from the publication of this resolution in the Annexes of the Belgian State Gazette and may be extended in accordance with article 620 of the Companies Code. This authorization applies under the same conditions to
the acquisition of the shares or profit sharing certificates or certificates of the company, realized by one of its subsidiaries as meant in article 627 of the Companies Code. 

The board of directors is authorized to dispose of all treasury shares the company holds, at a price it determines, on Euronext Brussels or
Amsterdam or in the framework of its remuneration policy to employees, directors or consultants of the company. This authorization is valid without limitation in time. This authorization also applies to the disposal of the company’s shares by
one of its directly controlled subsidiaries within the meaning of article 627 of the Companies Code. 

  

			
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	(3)	Dematerialized shares 

 The provisions in the articles of association relating to dematerialized
shares will enter into effect at the moment that the relevant implementing decrees enter into effect. 
 * 

*            * 

  

			
	Galapagos NV  |  Articles of Association  |  Coordination per 19 May 2015		Page 22 of 22Exhibit 10.1

 

BUSINESS
LOAN AGREEMENT (ASSET BASED)

 

	Principal	Loan Date	Maturity	Loan No	Call / Coll	Account	Officer	Initials
	$5,000,000.00	05-27-2015	06-30-2017	53125	 	2920	DAD	 

 

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 COMPANY INCORPORATED

        1300 EAST STREET

        FAIRPORT HARBOR, OH 44077
	Lender:	
        FIRSTMERIT BANK, N.A.

        Commercial Credit Services #90383

        106 South Main Street

        Akron, OH 44308

        (800) 554-4362

 

THIS BUSINESS LOAN AGREEMENT
(ASSET BASED) dated May 27, 2015, is made and executed between OURPET’S COMPANY, VIRTU COMPANY and SMP COMPANY INCORPORATED (“Borrower”)
and FIRSTMERIT BANK, N.A. (“Lender”) on the following terms and conditions. Borrower has received prior commercial loans
from Lender or has applied to Lender for a commercial loan or loans or other financial accommodations, including those which may
be described on any exhibit or schedule attached to this Agreement. Borrower understands and agrees that: (A) in granting, renewing,
or extending any Loan, Lender is relying upon Borrower’s representations, warranties, and agreements as set forth in this Agreement;
(B) the granting, renewing, or extending of any Loan by Lender at all times shall be subject to Lender’s sole judgment and discretion;
and (C) all such Loans shall be and remain subject to the terms and conditions of this Agreement.

 

TERM. This Agreement
shall be effective as of May 27, 2015, and shall continue in full force and effect until such time as all of Borrower’s Loans in
favor of Lender have been paid in full, including principal, interest, costs, expenses, attorneys’ fees, and other fees and charges,
or until such time as the parties may agree in writing to terminate this Agreement.

 

LINE OF CREDIT. Lender
agrees to make Advances to Borrower from time to time from the date of this Agreement to the Expiration Date, provided the aggregate
amount of such Advances outstanding at any time does not exceed the Borrowing Base. Within the foregoing limits, Borrower may borrow,
partially or wholly prepay, and reborrow under this Agreement as follows:

 

Conditions Precedent to Each
Advance. Lender’s obligation to make any Advance to or for the account of Borrower under this Agreement is subject to the following
conditions precedent, with all documents, instruments, opinions, reports, and other items required under this Agreement to be in
form and substance satisfactory to Lender:

 

(1) Lender shall have received
evidence that this Agreement and all Related Documents have been duly authorized, executed, and delivered by Borrower to Lender.

 

(2) Lender shall have received
such opinions of counsel, supplemental opinions, and documents as Lender may request.

 

(3) The security interests in
the Collateral shall have been duly authorized, created, and perfected with first lien priority and shall be in full force and
effect.

 

(4) All guaranties required
by Lender for the credit facility(ies) shall have been executed by each Guarantor, delivered to Lender, and be in full force and
effect.

 

(5) Lender, at its option and
for its sole benefit, shall have conducted an audit of Borrower’s Accounts, Inventory, books, records, and operations, and Lender
shall be satisfied as to their condition.

 

(6) Borrower shall have paid
to Lender all fees, costs, and expenses specified in this Agreement and the Related Documents as are then due and payable.

 

(7) There shall not exist at
the time of any Advance a condition which would constitute an Event of Default under this Agreement, and Borrower shall have delivered
to Lender the compliance certificate called for in the paragraph below titled “Compliance Certificate.”

 

Making Loan Advances.
Advances under this credit facility, as well as directions for payment from Borrower’s accounts, may be requested orally or in
writing by authorized persons. Lender may, but need not, require that all oral requests be confirmed in writing. Each Advance shall
be conclusively deemed to have been made at the request of and for the benefit of Borrower (1) when credited to any deposit account
of Borrower maintained with Lender or (2) when advanced in accordance with the instructions of an authorized person. Lender, at
its option, may set a cutoff time, after which all requests for Advances will be treated as having been requested on the next succeeding
Business Day.

 

Mandatory Loan Repayments.
If at any time the aggregate principal amount of the outstanding Advances shall exceed the applicable Borrowing Base, Borrower,
immediately upon written or oral notice from Lender, shall pay to Lender an amount equal to the difference between the outstanding
principal balance of the Advances and the Borrowing Base. On the Expiration Date, Borrower shall pay to Lender in full the aggregate
unpaid principal amount of all Advances then outstanding and all accrued unpaid interest, together with all other applicable fees,
costs and charges, if any, not yet paid.

 

Loan Account. Lender shall
maintain on its books a record of account in which Lender shall make entries for each Advance and such other debits and credits
as shall be appropriate in connection with the credit facility. Lender shall provide Borrower with periodic statements of Borrower’s
account, which statements shall be considered to be correct and conclusively binding on Borrower unless Borrower notifies Lender
to the contrary within thirty (30) days after Borrower’s receipt of any such statement which Borrower deems to be incorrect.

 

COLLATERAL. To secure
payment of the Primary Credit Facility and performance of all other Loans, obligations and duties owed by Borrower to Lender, Borrower
(and others, if required) shall grant to Lender Security Interests in such property and assets as Lender may require. Lender’s
Security Interests in the Collateral shall be continuing liens and shall include the proceeds and products of the Collateral, including
without limitation the proceeds of any insurance. With respect to the Collateral, Borrower agrees and represents and warrants to
Lender:

 

    	 

    	 

    

 

Perfection of Security Interests.
Borrower agrees to execute all documents perfecting Lender’s Security Interest and to take whatever actions are requested by Lender
to perfect and continue Lender’s Security Interests in the Collateral. Upon request of Lender, Borrower will deliver to Lender
any and all of the documents evidencing or constituting the Collateral, and Borrower will note Lender’s interest upon any and all
chattel paper and instruments if not delivered to Lender for possession by Lender. Contemporaneous with the execution of this Agreement,
Borrower will execute one or more UCC financing statements and any similar statements as may be required by applicable law, and
Lender will file such financing statements and all such similar statements in the appropriate location or locations. Borrower hereby
appoints Lender as its irrevocable attorney-in-fact for the purpose of executing any documents necessary to perfect or to continue
any Security Interest. Lender may at any time, and without further authorization from Borrower, file a carbon, photograph, facsimile,
or other reproduction of any financing statement for use as a financing statement. Borrower will reimburse Lender for all expenses
for the perfection, termination, and the continuation of the perfection of Lender’s security interest in the Collateral. Borrower
promptly will notify Lender before any change in Borrower’s name including any change to the assumed business names of Borrower.
Borrower also promptly will notify Lender before any change in Borrower’s Social Security Number or Employer Identification Number.
Borrower further agrees to notify Lender in writing prior to any change in address or location of Borrower’s principal governance
office or should Borrower merge or consolidate with any other entity.

 

Collateral Records. Borrower
does now, and at all times hereafter shall, keep correct and accurate records of the Collateral, all of which records shall be
available to Lender or Lender’s representative upon demand for inspection and copying at any reasonable time. With respect to the
Accounts, Borrower agrees to keep and maintain such records as Lender may require, including without limitation information concerning
Eligible Accounts and Account balances and agings. Records related to Accounts (Receivables) are or will be located at 1300 EAST
STREET, FAIRPORT HARBOR, OH 44077. With respect to the Inventory, Borrower agrees to keep and maintain such records as Lender may
require, including without limitation information concerning Eligible Inventory and records itemizing and describing the kind,
type, quality, and quantity of Inventory, Borrower’s Inventory costs and selling prices, and the daily withdrawals and additions
to Inventory. Records related to Inventory are or will be located at 1300 EAST STREET, FAIRPORT HARBOR, OH 44077. The above is
an accurate and complete list of all locations at which Borrower keeps or maintains business records concerning Borrower’s collateral.

 

Collateral Schedules.
Concurrently with the execution and delivery of this Agreement, Borrower shall execute and deliver to Lender schedules of Accounts
and Inventory and schedules of Eligible Accounts and Eligible Inventory in form and substance satisfactory to the Lender. Thereafter
supplemental schedules shall be delivered according to the following schedule: With respect to Eligible Accounts, schedules shall
be delivered Monthly. With respect to Eligible Inventory, schedules shall be delivered Monthly.

 

Representations and Warranties
Concerning Accounts. With respect to the Accounts, Borrower represents and warrants to Lender: (1) Each Account represented
by Borrower to be an Eligible Account for purposes of this Agreement conforms to the requirements of the definition of an Eligible
Account; (2) All Account information listed on schedules delivered to Lender will be true and correct, subject to immaterial variance;
and (3) Lender, its assigns, or agents shall have the right at any time and at Borrower’s expense to inspect, examine, and audit
Borrower’s records and to confirm with Account Debtors the accuracy of such Accounts.

 

Representations and Warranties
Concerning Inventory. With respect to the Inventory, Borrower represents and warrants to Lender: (1) All Inventory represented
by Borrower to be Eligible Inventory for purposes of this Agreement conforms to the requirements of the definition of Eligible
Inventory; (2) All Inventory values listed on schedules delivered to Lender will be true and correct, subject to immaterial variance;
(3) The value of the Inventory will be determined on a consistent accounting basis; (4) Except as agreed to the contrary by Lender
in writing, all Eligible Inventory is now and at all times hereafter will be in Borrower’s physical possession and shall not be
held by others on consignment, sale on approval, or sale or return; (5) Except as reflected in the Inventory schedules delivered
to Lender, all Eligible Inventory is now and at all times hereafter will be of good and merchantable quality, free from defects;
(6) Eligible Inventory is not now and will not at any time hereafter be stored with a bailee, warehouseman, or similar party without
Lender’s prior written consent, and, in such event, Borrower will concurrently at the time of bailment cause any such bailee, warehouseman,
or similar party to issue and deliver to Lender, in form acceptable to Lender, warehouse receipts in Lender name evidencing the
storage of Inventory; and (7) Lender, its assigns, or agents shall have the right at any time and at Borrower’s expense to inspect
and examine the Inventory and to check and test the same as to quality, quantity, value, and condition.

 

CONDITIONS PRECEDENT TO EACH
ADVANCE. Lender’s obligation to make the initial Advance and each subsequent Advance under this Agreement shall be subject
to the fulfillment to Lender’s satisfaction of all of the conditions set forth in this Agreement and in the Related Documents.

 

Loan Documents. Borrower
shall provide to Lender the following documents for the Loan: (1) the Note; (2) subordinations; (3) together with all such Related
Documents as Lender may require for the Loan; all in form and substance satisfactory to Lender and Lender’s counsel.

 

Borrower’s Authorization.
Borrower shall have provided in form and substance satisfactory to Lender properly certified resolutions, duly authorizing the
execution and delivery of this Agreement, the Note and the Related Documents. In addition, Borrower shall have provided such other
resolutions, authorizations, documents and instruments as Lender or its counsel, may require.

 

Fees and Expenses Under This
Agreement. Borrower shall have paid to Lender all fees, costs, and expenses specified in this Agreement and the Related Documents
as are then due and payable.

 

Representations and Warranties.
The representations and warranties set forth in this Agreement, in the Related Documents, and in any document or certificate delivered
to Lender under this Agreement are true and correct.

 

No Event of Default. There
shall not exist at the time of any Advance a condition which would constitute an Event of Default under this Agreement or under
any Related Document.

 

MULTIPLE BORROWERS. This
Agreement has been executed by multiple obligors who are referred to in this Agreement individually, collectively and interchangeably
as “Borrower.” Unless specifically stated to the contrary, the word “Borrower” as used in this Agreement, including
without limitation all representations, warranties and covenants, shall include all Borrowers. Borrower understands and agrees
that, with or without notice to any one Borrower, Lender may (A) make one or more additional secured or unsecured loans or otherwise
extend additional credit with respect to any other Borrower; (B) with respect to any other Borrower 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) release, substitute, agree not to sue, or deal
with any one or more of Borrower’s or any other Borrower’s sureties, endorsers, or other guarantors on any terms or in any manner
Lender may choose; (E) determine how, when and what application of payments and credits shall be made on any indebtedness; (F)
apply such security and direct the order or manner of sale of any Collateral, including without limitation, any non-judicial sale
permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; (G) sell,
transfer, assign or grant participations in all or any part of the Loan; (H) exercise or refrain from exercising any rights against
Borrower or others, or otherwise act or refrain from acting; (I) settle or compromise any indebtedness; and (J) subordinate the
payment of all or any part of any of Borrower’s indebtedness to Lender to the payment of any liabilities which may be due Lender
or others.

 

    	 

    	 

    

 

REPRESENTATIONS AND WARRANTIES.
Borrower represents and warrants to Lender, as of the date of this Agreement, as of the date of each disbursement of loan proceeds,
as of the date of any renewal, extension or modification of any Loan, and at all times any Indebtedness exists:

 

Organization. OURPET’S
COMPANY is a corporation for profit which is, and at all times shall be, duly organized, validly existing, and in good standing
under and by virtue of the laws of the State of Colorado. OURPET’S COMPANY is duly authorized to transact business in the State
of Ohio and all other states in which OURPET’S COMPANY is doing business, having obtained all necessary filings, governmental licenses
and approvals for each state in which OURPET’S COMPANY is doing business. Specifically, OURPET’S COMPANY is, and at all times shall
be, duly qualified as a foreign corporation in all states in which the failure to so qualify would have a material adverse effect
on its business or financial condition. OURPET’S COMPANY has the full power and authority to own its properties and to transact
the business in which it is presently engaged or presently proposes to engage. OURPET’S COMPANY maintains an office at 1300 EAST
STREET, FAIRPORT HARBOR, OH 44077. Unless OURPET’S COMPANY has designated otherwise in writing, the principal office is the office
at which OURPET’S COMPANY keeps its books and records including its records concerning the Collateral. OURPET’S COMPANY will notify
Lender prior to any change in the location of OURPET’S COMPANY’s state of organization or any change in OURPET’S COMPANY’s name.
OURPET’S COMPANY shall do all things necessary to preserve and to keep in full force and effect its existence, rights and privileges,
and shall comply with all regulations, rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental
authority or court applicable to OURPET’S COMPANY and OURPET’S COMPANY’s business activities.

 

VIRTU COMPANY is a corporation
for profit which is, and at all times shall be, duly organized, validly existing, and in good standing under and by virtue of the
laws of the State of Ohio. VIRTU COMPANY is duly authorized to transact business in all other states in which VIRTU COMPANY is
doing business, having obtained all necessary filings, governmental licenses and approvals for each state in which VIRTU COMPANY
is doing business. Specifically, VIRTU COMPANY is, and at all times shall be, duly qualified as a foreign corporation in all states
in which the failure to so qualify would have a material adverse effect on its business or financial condition. VIRTU COMPANY has
the full power and authority to own its properties and to transact the business in which it is presently engaged or presently proposes
to engage. VIRTU COMPANY maintains an office at 1300 EAST STREET, FAIRPORT HARBOR, OH 44077. Unless VIRTU COMPANY has designated
otherwise in writing, the principal office is the office at which VIRTU COMPANY keeps its books and records including its records
concerning the Collateral. VIRTU COMPANY will notify Lender prior to any change in the location of VIRTU COMPANY’s state of organization
or any change in VIRTU COMPANY’s name. VIRTU COMPANY shall do all things necessary to preserve and to keep in full force and effect
its existence, rights and privileges, and shall comply with all regulations, rules, ordinances, statutes, orders and decrees of
any governmental or quasi-governmental authority or court applicable to VIRTU COMPANY and VIRTU COMPANY’s business activities.

 

SMP COMPANY INCORPORATED is a
corporation for profit which is, and at all times shall be, duly organized, validly existing, and in good standing under and by
virtue of the laws of the State of Ohio. SMP COMPANY INCORPORATED is duly authorized to transact business in all other states in
which SMP COMPANY INCORPORATED is doing business, having obtained all necessary filings, governmental licenses and approvals for
each state in which SMP COMPANY INCORPORATED is doing business. Specifically, SMP COMPANY INCORPORATED is, and at all times shall
be, duly qualified as a foreign corporation in all states in which the failure to so qualify would have a material adverse effect
on its business or financial condition. SMP COMPANY INCORPORATED has the full power and authority to own its properties and to
transact the business in which it is presently engaged or presently proposes to engage. SMP COMPANY INCORPORATED maintains an office
at 1300 EAST STREET, FAIRPORT HARBOR, OH 44077. Unless SMP COMPANY INCORPORATED has designated otherwise in writing, the principal
office is the office at which SMP COMPANY INCORPORATED keeps its books and records including its records concerning the Collateral.
SMP COMPANY INCORPORATED will notify Lender prior to any change in the location of SMP COMPANY INCORPORATED’s state of organization
or any change in SMP COMPANY INCORPORATED’s name. SMP COMPANY INCORPORATED shall do all things necessary to preserve and to keep
in full force and effect its existence, rights and privileges, and shall comply with all regulations, rules, ordinances, statutes,
orders and decrees of any governmental or quasi-governmental authority or court applicable to SMP COMPANY INCORPORATED and SMP
COMPANY INCORPORATED’s business activities.

 

Assumed Business Names.
Borrower has filed or recorded all documents or filings required by law relating to all assumed business names used by Borrower.
Excluding the name of Borrower, the following is a complete list of all assumed business names under which Borrower does business:
None.

 

Authorization. Borrower’s
execution, delivery, and performance of this Agreement and all the Related Documents have been duly authorized by all necessary
action by Borrower and do not conflict with, result in a violation of, or constitute a default under (1) any provision of (a) Borrower’s
articles of incorporation or organization, or bylaws, code of regulations, or (b) any agreement or other instrument binding upon
Borrower or (2) any law, governmental regulation, court decree, or order applicable to Borrower or to Borrower’s properties.

 

Financial Information.
Each of Borrower’s financial statements supplied to Lender truly and completely disclosed Borrower’s financial condition as of
the date of the statement, and there has been no material adverse change in Borrower’s financial condition subsequent to the date
of the most recent financial statement supplied to Lender. Borrower has no material contingent obligations except as disclosed
in such financial statements.

 

Legal Effect. This Agreement
constitutes, and any instrument or agreement Borrower is required to give under this Agreement when delivered will constitute legal,
valid, and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms.

 

Properties. Except as
contemplated by this Agreement or as previously disclosed in Borrower’s financial statements or in writing to Lender and as accepted
by Lender, and except for property tax liens for taxes not presently due and payable, Borrower owns and has good title to all of
Borrower’s properties free and clear of all Security Interests, and has not executed any security documents or financing statements
relating to such properties. All of Borrower’s properties are titled in Borrower’s legal name, and Borrower has not used or filed
a financing statement under any other name for at least the last five (5) years.

 

    	 

    	 

    

 

Hazardous Substances.
Except as disclosed to and acknowledged by Lender in writing, Borrower represents and warrants that: (1) During the period of Borrower’s
ownership of the Collateral, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened
release of any Hazardous Substance by any person on, under, about or from any of the Collateral. (2) Borrower has no knowledge
of, or reason to believe that there has been (a) any breach or violation of any Environmental Laws; (b) any use, generation, manufacture,
storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Collateral
by any prior owners or occupants of any of the Collateral; or (c) any actual or threatened litigation or claims of any kind by
any person relating to such matters. (3) Neither Borrower nor any tenant, contractor, agent or other authorized user of any of
the Collateral shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or
from any of the Collateral; and any such activity shall be conducted in compliance with all applicable federal, state, and local
laws, regulations, and ordinances, including without limitation all Environmental Laws. Borrower authorizes Lender and its agents
to enter upon the Collateral to make such inspections and tests as Lender may deem appropriate to determine compliance of the Collateral
with this section of the Agreement. Any inspections or tests made by Lender shall be at Borrower’s expense and for Lender’s purposes
only and shall not be construed to create any responsibility or liability on the part of Lender to Borrower or to any other person.
The representations and warranties contained herein are based on Borrower’s due diligence in investigating the Collateral for hazardous
waste and Hazardous Substances. Borrower hereby (1) releases and waives any future claims against Lender for indemnity or contribution
in the event Borrower becomes liable for cleanup or other costs under any such laws, and (2) agrees to indemnify, defend, and hold
harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or
indirectly sustain or suffer resulting from a breach of this section of the Agreement or as a consequence of any use, generation,
manufacture, storage, disposal, release or threatened release of a hazardous waste or substance on the Collateral. The provisions
of this section of the Agreement, including the obligation to indemnify and defend, shall survive the payment of the Indebtedness
and the termination, expiration or satisfaction of this Agreement and shall not be affected by Lender’s acquisition of any interest
in any of the Collateral, whether by foreclosure or otherwise.

 

Litigation and Claims.
No litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Borrower
is pending or threatened, and no other event has occurred which may materially adversely affect Borrower’s financial condition
or properties, other than litigation, claims, or other events, if any, that have been disclosed to and acknowledged by Lender in
writing.

 

Taxes. To the best of
Borrower’s knowledge, all of Borrower’s tax returns and reports that are or were required to be filed, have been filed, and all
taxes, assessments and other governmental charges have been paid in full, except those presently being or to be contested by Borrower
in good faith in the ordinary course of business and for which adequate reserves have been provided.

 

Lien Priority. Unless
otherwise previously disclosed to Lender in writing, Borrower has not entered into or granted any Security Agreements, or permitted
the filing or attachment of any Security Interests on or affecting any of the Collateral directly or indirectly securing repayment
of Borrower’s Loan and Note, that would be prior or that may in any way be superior to Lender’s Security Interests and rights in
and to such Collateral.

 

Binding Effect. This Agreement,
the Note, all Security Agreements (if any), and all Related Documents are binding upon the signers thereof, as well as upon their
successors, representatives and assigns, and are legally enforceable in accordance with their respective terms.

 

AFFIRMATIVE COVENANTS.
Borrower covenants and agrees with Lender that, so long as this Agreement remains in effect, Borrower will:

 

Notices of Claims and Litigation.
Promptly inform Lender in writing of (1) all material adverse changes in Borrower’s financial condition, and (2) all existing and
all threatened litigation, claims, investigations, administrative proceedings or similar actions affecting Borrower or any Guarantor
which could materially affect the financial condition of Borrower or the financial condition of any Guarantor.

 

Financial Records. Maintain
its books and records in accordance with GAAP, applied on a consistent basis, and permit Lender to examine and audit Borrower’s
books and records at all reasonable times.

 

Financial Statements.
Furnish Lender with the following:

 

Additional Requirements.

 

Annual CPA Audited Financial
Statements of Ourpet’s Company due as soon as available but in no event later than 120 days after the fiscal year end.

 

Quarterly Company Prepared Financial
Statements of Ourpet’s Company due as soon as available but in no event later than 45 days after the quarter end.

 

Monthly Borrowing Base Certificates
of Ourpet’s Company due as soon as available but in no event later than 20 days after the month end

 

Monthly Detailed Accounts Receivable
Agings, Accounts Payable Agings and Inventory Listing of Ourpet’s Company due as soon as available but in no event later than 20
days after the month end.

 

All financial reports required
to be provided under this Agreement shall be prepared in accordance with GAAP, applied on a consistent basis, and certified by
Borrower as being true and correct.

 

Additional Information.
Furnish such additional information and statements, as Lender may request from time to time.

 

Financial Covenants and Ratios.
Comply with the following covenants and ratios:

 

Minimum Income and Cash flow
Requirements. Other Cash Flow requirements are as follows: Borrower shall not permit the Corporations Debt Service Coverage
Ratio, on a consolidated basis, to be less than 1.15 to 1.00 measured quarterly on a trailing twelve month basis starting with
the trailing twelve months for the quarter end March 31, 2013.

 

Debt Service Coverage Ratio
shall mean the sum of the net income or loss of Corporations after taxes and less cash distributions, cash dividends and advances
made to shareholders or related parties plus depreciation plus amortization plus interest expense, exclusive of extraordinary gains/loss,
divided by the sum of the scheduled and paid current maturities of long term debt plus cash interest expense due and paid plus
principal payments paid on subordinated debt plus unfunded capital expenditures less any new capital contributed from proceeds
of new subordinated debt and/or proceeds from stock issuance (only to the extent that such proceeds (1) were utilized to fund specific
unfunded capital expenditures, or (2) were utilized to refinance existing subordinated debt for the applicable accounting period.)

 

Unfunded capital expenditures
defined as Total Capital Expenditures less proceeds of long term debt (other than subordinated debt).

 

Tangible Net Worth Requirements.
Other Net Worth requirements are as follows: Borrower shall maintain Adjusted Tangible Capital of not less than $4,500,000.00,
tested at the end of each quarter end beginning December 31, 2012 and measured at each fiscal quarter end thereafter. Adjusted
Tangible Capital means Tangible Capital plus subordinated debt. Tangible Capital means Tangible Net Worth less any receivables,
promissory notes, advances to, or investments in any affiliated or other related entity to Borrower or individuals related to Borrower.
Tangible Net Worth means total assets less total liabilities as defined by GAAP, less any intangible assets. Intangible Assets
means assets that have no tangible value, including but not limited to goodwill, trademarks, patents, copyrights, and organization
expenses.

 

    	 

    	 

    

 

Except as provided above, all
computations made to determine compliance with the requirements contained in this paragraph shall be made in accordance with generally
accepted accounting principles, applied on a consistent basis, and certified by Borrower as being true and correct.

 

Insurance. Maintain fire
and other risk insurance, public liability insurance, and such other insurance as Lender may require with respect to Borrower’s
properties and operations, in form, amounts, coverages and with insurance companies acceptable to Lender. Borrower, upon request
of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including
stipulations that coverages will not be cancelled or diminished without at least ten (10) days prior written notice to Lender.
Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any
way by any act, omission or default of Borrower or any other person. In connection with all policies covering assets in which Lender
holds or is offered a security interest for the Loans, Borrower will provide Lender with such lender’s loss payable or other endorsements
as Lender may require.

 

Insurance Reports. Furnish
to Lender, upon request of Lender, reports on each existing insurance policy showing such information as Lender may reasonably
request, including without limitation the following: (1) the name of the insurer; (2) the risks insured; (3) the amount of the
policy; (4) the properties insured; (5) the then current property values on the basis of which insurance has been obtained, and
the manner of determining those values; and (6) the expiration date of the policy. In addition, upon request of Lender (however
not more often than annually), Borrower will have an independent appraiser satisfactory to Lender determine, as applicable, the
actual cash value or replacement cost of any Collateral. The cost of such appraisal shall be paid by Borrower.

 

Subordination. Prior to
disbursement of any Loan proceeds, deliver to Lender subordination agreements on Lender’s forms, executed by Borrower’s creditors
named below, subordinating all of Borrower’s indebtedness to such creditors, or such lesser amounts as may be agreed to by Lender
in writing, and any security interests in collateral securing that indebtedness to the Loans and security interests of Lender.

 

	Name
    of Creditor	 	Total
    Amount of

    Debt	 
	 	 	 	 
	LJR LIMITED PARTNERSHIP	 	$	150,000.00	 
	 	 	 	 	 
	SENK PROPERTIES, LLC	 	$	50,000.00	 
	 	 	 	 	 
	PETZONE PRODUCTS	 	$	100,000.00	 
	 	 	 	 	 
	NELSON D. MOSTOW LIVING TRUST DTD
    10-21-92	 	$	50,000.00	 

 

Other Agreements. Comply
with all terms and conditions of all other agreements, whether now or hereafter existing, between Borrower and any other party
and notify Lender immediately in writing of any default in connection with any other such agreements.

 

Loan Proceeds. Use all
Loan proceeds solely for Borrower’s business operations, unless specifically consented to the contrary by Lender in writing.

 

Taxes, Charges and Liens.
Pay and discharge when due all of its indebtedness and obligations, including without limitation all assessments, taxes, governmental
charges, levies and liens, of every kind and nature, imposed upon Borrower or its properties, income, or profits, prior to the
date on which penalties would attach, and all lawful claims that, if unpaid, might become a lien or charge upon any of Borrower’s
properties, income, or profits. Provided however, Borrower will not be required to pay and discharge any such assessment, tax,
charge, levy, lien or claim so long as (1) the legality of the same shall be contested in good faith by appropriate proceedings,
and (2) Borrower shall have established on Borrower’s books adequate reserves with respect to such contested assessment, tax, charge,
levy, lien, or claim in accordance with GAAP.

 

Performance. Perform and
comply, in a timely manner, with all terms, conditions, and provisions set forth in this Agreement, in the Related Documents, and
in all other instruments and agreements between Borrower and Lender. Borrower shall notify Lender immediately in writing of any
default in connection with any agreement.

 

Operations. Maintain executive
and management personnel with substantially the same qualifications and experience as the present executive and management personnel;
provide written notice to Lender of any change in executive and management personnel; conduct its business affairs in a reasonable
and prudent manner.

 

Environmental Studies.
Promptly conduct and complete, at Borrower’s expense, all such investigations, studies, samplings and testings as may be requested
by Lender or any governmental authority relative to any substance, or any waste or by-product of any substance defined as toxic
or a hazardous substance under applicable federal, state, or local law, rule, regulation, order or directive, at or affecting any
property or any facility owned, leased or used by Borrower.

 

Compliance with Governmental
Requirements. Comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities
applicable to the conduct of Borrower’s properties, businesses and operations, and to the use or occupancy of the Collateral, including
without limitation, the Americans With Disabilities Act. Borrower may contest in good faith any such law, ordinance, or regulation
and withhold compliance during any proceeding, including appropriate appeals, so long as Borrower has notified Lender in writing
prior to doing so and so long as, in Lender’s sole opinion, Lender’s interests in the Collateral are not jeopardized. Lender may
require Borrower to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender’s interest.

 

Inspection. Permit employees
or agents of Lender at any reasonable time to inspect any and all Collateral for the Loan or Loans and Borrower’s other properties
and to examine or audit Borrower’s books, accounts, and records and to make copies and memoranda of Borrower’s books, accounts,
and records. If Borrower now or at any time hereafter maintains any records (including without limitation computer generated records
and computer software programs for the generation of such records) in the possession of a third party, Borrower, upon request of
Lender, shall notify such party to permit Lender free access to such records at all reasonable times and to provide Lender with
copies of any records it may request, all at Borrower’s expense.

 

    	 

    	 

    

 

Compliance Certificates.
Unless waived in writing by Lender, provide Lender within forty-five (45) days after the end of each fiscal quarter, with a certificate
executed by Borrower’s chief financial officer, or other officer or person acceptable to Lender, certifying that the representations
and warranties set forth in this Agreement are true and correct as of the date of the certificate and further certifying that,
as of the date of the certificate, no Event of Default exists under this Agreement.

 

Environmental Compliance and
Reports. Borrower shall comply in all respects with any and all Environmental Laws; not cause or permit to exist, as a result
of an intentional or unintentional action or omission on Borrower’s part or on the part of any third party, on property owned and/or
occupied by Borrower, any environmental activity where damage may result to the environment, unless such environmental activity
is pursuant to and in compliance with the conditions of a permit issued by the appropriate federal, state or local governmental
authorities; shall furnish to Lender promptly and in any event within thirty (30) days after receipt thereof a copy of any notice,
summons, lien, citation, directive, letter or other communication from any governmental agency or instrumentality concerning any
intentional or unintentional action or omission on Borrower’s part in connection with any environmental activity whether or not
there is damage to the environment and/or other natural resources.

 

Additional Assurances.
Make, execute and deliver to Lender such promissory notes, mortgages, deeds of trust, security agreements, assignments, financing
statements, instruments, documents and other agreements as Lender or its attorneys may reasonably request to evidence and secure
the Loans and to perfect all Security Interests.

 

LENDER’S EXPENDITURES.
If any action or proceeding is commenced that would materially affect Lender’s interest in the Collateral or if Borrower fails
to comply with any provision of this Agreement or any Related Documents, including but not limited to Borrower’s failure to discharge
or pay when due any amounts Borrower is required to discharge or pay under this Agreement or any Related Documents, Lender on Borrower’s
behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging
or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on any Collateral and
paying all costs for insuring, maintaining and preserving any Collateral. All such expenditures incurred or paid by Lender for
such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of
repayment by Borrower. All such expenses will become a part of the Indebtedness and, at Lender’s option, will (A) be payable on
demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become
due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as
a balloon payment which will be due and payable at the Note’s maturity.

 

NEGATIVE COVENANTS. Borrower
covenants and agrees with Lender that while this Agreement is in effect, Borrower shall not, without the prior written consent
of Lender:

 

Capital Expenditures.
Make or contract to make capital expenditures, including leasehold improvements, in any fiscal year in excess of $750,000.00
or incur liability for rentals of property (including both real and personal property) in an amount which, together with capital
expenditures, shall in any fiscal year exceed such sum.

 

Indebtedness and Liens.
(1) Except for trade debt incurred in the normal course of business and indebtedness to Lender contemplated by this Agreement,
create, incur or assume indebtedness for borrowed money, including capital leases, (2) sell, transfer, mortgage, assign, pledge,
lease, grant a security interest in, or encumber any of Borrower’s assets (except as allowed as Permitted Liens), or (3) sell with
recourse any of Borrower’s accounts, except to Lender.

 

Additional Financial Restrictions.

 

Continuity of Operations.
(1) Engage in any business activities substantially different than those in which Borrower is presently engaged, (2) cease operations,
liquidate, merge, transfer, acquire or consolidate with any other entity, change its name, dissolve or transfer or sell Collateral
out of the ordinary course of business, or (3) pay any dividends on Borrower’s stock (other than dividends payable in its stock),
provided, however that notwithstanding the foregoing, but only so long as no Event of Default has occurred and is continuing or
would result from the payment of dividends, if Borrower is a “Subchapter S Corporation” (as defined in the Internal Revenue
Code of 1986, as amended), Borrower may pay cash dividends on its stock to its shareholders from time to time in amounts necessary
to enable the shareholders to pay income taxes and make estimated income tax payments to satisfy their liabilities under federal
and state law which arise solely from their status as Shareholders of a Subchapter S Corporation because of their ownership of
shares of Borrower’s stock, or purchase or retire any of Borrower’s outstanding shares or alter or amend Borrower’s capital structure.

 

Loans, Acquisitions and Guaranties.
(1) Loan, invest in or advance money or assets to any other person, enterprise or entity, (2) purchase, create or acquire any interest
in any other enterprise or entity, or (3) incur any obligation as surety or guarantor other than in the ordinary course of business.

 

Agreements. Enter into
any agreement containing any provisions which would be violated or breached by the performance of Borrower’s obligations under
this Agreement or in connection herewith.

 

CESSATION OF ADVANCES.
If Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan Advances or to disburse Loan proceeds if: (A) Borrower or any Guarantor is in default under
the terms of this Agreement or any of the Related Documents or any other agreement that Borrower or any Guarantor has with Lender;
(B) Borrower or any Guarantor dies, becomes incompetent or becomes insolvent, files a petition in bankruptcy or similar proceedings,
or is adjudged a bankrupt; (C) there occurs a material adverse change in Borrower’s financial condition, in the financial condition
of any Guarantor, or in the value of any Collateral securing any Loan; or (D) any Guarantor seeks, claims or otherwise attempts
to limit, modify or revoke such Guarantor’s guaranty of the Loan or any other loan with Lender; or (E) Lender in good faith deems
itself insecure, even though no Event of Default shall have occurred.

 

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.

 

DEFAULT. Each of the
following shall constitute an Event of Default under this Agreement:

 

    	 

    	 

    

 

Payment Default. Borrower
fails to make any payment when due under the Loan.

 

Other Defaults. Borrower
fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement 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 or any Grantor’s
property or Borrower’s or any Grantor’s ability to repay the Loans or perform their respective obligations under this Agreement
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 Agreement 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.

 

Defective Collateralization.
This Agreement or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document
to create a valid and perfected security interest or lien) at any time and for any reason.

 

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 of any of the Indebtedness or any Guarantor dies or becomes incompetent,
or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.

 

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 the Loan
is impaired.

 

Insecurity. Lender in
good faith believes itself insecure.

 

Right to Cure. If any
default, other than a default on Indebtedness, is curable and if Borrower or Grantor, as the case may be, has not been given a
notice of a similar default within the preceding twelve (12) months, it may be cured if Borrower or Grantor, as the case may be,
after Lender sends written notice to Borrower or Grantor, as the case may be, demanding cure of such default: (1) cure the default
within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiate steps which Lender deems
in Lender’s sole discretion to be sufficient to cure the default and thereafter continue and complete all reasonable and necessary
steps sufficient to produce compliance as soon as reasonably practical.

 

EFFECT OF AN EVENT OF DEFAULT.
If any Event of Default shall occur, except where otherwise provided in this Agreement or the Related Documents, all commitments
and obligations of Lender under this Agreement or the Related Documents or any other agreement immediately will terminate (including
any obligation to make further Loan Advances or disbursements), and, at Lender’s option, all Indebtedness immediately will become
due and payable, all without notice of any kind to Borrower, except that in the case of an Event of Default of the type described
in the “Insolvency” subsection above, such acceleration shall be automatic and not optional. In addition, Lender shall
have all the rights and remedies provided in the Related Documents or available at law, in equity, or otherwise. Except as may
be prohibited by applicable law, all of Lender’s rights and remedies shall be cumulative and may be exercised singularly or concurrently.
Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or
to take action to perform an obligation of Borrower or of any Grantor shall not affect Lender’s right to declare a default and
to exercise its rights and remedies.

 

PRIOR AGREEMENTS. THIS
LOAN AGREEMENT SHALL SUPERSEDE ANY PRIOR BUSINESS LOAN AGREEMENT BETWEEN BORROWER AND LENDER.

 

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.

 

MISCELLANEOUS PROVISIONS.
The following miscellaneous provisions are a part of this Agreement:

 

Amendments. This Agreement,
together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth
in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the
party or parties sought to be charged or bound by the alteration or amendment.

 

Attorneys’ Fees; Expenses.
Borrower agrees to pay upon demand all of Lender’s costs and expenses, including Lender’s attorneys’ fees and Lender’s legal expenses,
incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce this Agreement,
and Borrower shall pay the costs and expenses of such enforcement. Costs and expenses include Lender’s attorneys’ fees and legal
expenses whether or not there is a lawsuit, including attorneys’ fees and legal expenses for bankruptcy proceedings (including
efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services.
Borrower also shall pay all court costs and such additional fees as may be directed by the court.

 

Caption Headings. Caption
headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this
Agreement.

 

    	 

    	 

    

 

Consent to Loan Participation.
Borrower agrees and consents to Lender’s sale or transfer, whether now or later, of one or more participation interests in the
Loan to one or more purchasers, whether related or unrelated to Lender. Lender may provide, without any limitation whatsoever,
to any one or more purchasers, or potential purchasers, any information or knowledge Lender may have about Borrower or about any
other matter relating to the Loan, and Borrower hereby waives any rights to privacy Borrower may have with respect to such matters.
Borrower additionally waives any and all notices of sale of participation interests, as well as all notices of any repurchase of
such participation interests. Borrower also agrees that the purchasers of any such participation interests will be considered as
the absolute owners of such interests in the Loan and will have all the rights granted under the participation agreement or agreements
governing the sale of such participation interests. Borrower further waives all rights of offset or counterclaim that it may have
now or later against Lender or against any purchaser of such a participation interest and unconditionally agrees that either Lender
or such purchaser may enforce Borrower’s obligation under the Loan irrespective of the failure or insolvency of any holder of any
interest in the Loan. Borrower further agrees that the purchaser of any such participation interests may enforce its interests
irrespective of any personal claims or defenses that Borrower may have against Lender.

 

Governing Law. This Agreement
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 Agreement 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.

 

Joint and Several Liability.
All obligations of Borrower under this Agreement shall be joint and several, and all references to Borrower shall mean each and
every Borrower. This means that each Borrower signing below is responsible for all obligations in this Agreement. Where any one
or more of the parties is a corporation, partnership, limited liability company or similar entity, it is not necessary for Lender
to inquire into the powers of any of the officers, directors, partners, members, or other agents acting or purporting to act on
the entity’s behalf, and any obligations made or created in reliance upon the professed exercise of such powers shall be guaranteed
under this Agreement.

 

No Waiver by Lender. Lender
shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender.
No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right.
A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender’s right otherwise to demand
strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing
between Lender and Borrower, or between Lender and any Grantor, shall constitute a waiver of any of Lender’s rights or of any of
Borrower’s or any Grantor’s obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement,
the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such
consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.

 

Notices. Any notice required
to be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when actually received
by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed,
when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses
shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by giving formal
written notice to the other parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes,
Borrower agrees to keep Lender informed at all times of Borrower’s current address. Unless otherwise provided or required by law,
if there is more than one Borrower, any notice given by Lender to any Borrower is deemed to be notice given to all Borrowers.

 

Severability. If a court
of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any person or circumstance,
that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other person or circumstance.
If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending
provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality,
invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of
any other provision of this Agreement.

 

Subsidiaries and Affiliates
of Borrower. To the extent the context of any provisions of this Agreement makes it appropriate, including without limitation
any representation, warranty or covenant, the word “Borrower” as used in this Agreement shall include all of Borrower’s
subsidiaries and affiliates. Notwithstanding the foregoing however, under no circumstances shall this Agreement be construed to
require Lender to make any Loan or other financial accommodation to any of Borrower’s subsidiaries or affiliates.

 

Successors and Assigns.
All covenants and agreements by or on behalf of Borrower contained in this Agreement or any Related Documents shall bind Borrower’s
successors and assigns and shall inure to the benefit of Lender and its successors and assigns. Borrower shall not, however, have
the right to assign Borrower’s rights under this Agreement or any interest therein, without the prior written consent of Lender.

 

Survival of Representations
and Warranties. Borrower understands and agrees that in extending Loan Advances, Lender is relying on all representations,
warranties, and covenants made by Borrower in this Agreement or in any certificate or other instrument delivered by Borrower to
Lender under this Agreement or the Related Documents. Borrower further agrees that regardless of any investigation made by Lender,
all such representations, warranties and covenants will survive the extension of Loan Advances and delivery to Lender of the Related
Documents, shall be continuing in nature, shall be deemed made and redated by Borrower at the time each Loan Advance is made, and
shall remain in full force and effect until such time as Borrower’s Indebtedness shall be paid in full, or until this Agreement
shall be terminated in the manner provided above, whichever is the last to occur.

 

Time is of the Essence.
Time is of the essence in the performance of this Agreement.

 

Waive Jury. All parties to
this Agreement hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against
any other party.

 

DEFINITIONS. The following
capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically stated to the contrary,
all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the
singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise
defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code. Accounting words and
terms not otherwise defined in this Agreement shall have the meanings assigned to them in accordance with generally accepted accounting
principles as in effect on the date of this Agreement:

 

Account. The word “Account”
means a trade account, account receivable, other receivable, or other right to payment for goods sold or services rendered owing
to Borrower (or to a third party grantor acceptable to Lender).

 

    	 

    	 

    

 

Account Debtor. The words
“Account Debtor” mean the person or entity obligated upon an Account.

 

Advance. The word “Advance”
means a disbursement of Loan funds made, or to be made, to Borrower or on Borrower’s behalf under the terms and conditions of this
Agreement.

 

Agreement. The word “Agreement”
means this Business Loan Agreement (Asset Based), as this Business Loan Agreement (Asset Based) may be amended or modified from
time to time, together with all exhibits and schedules attached to this Business Loan Agreement (Asset Based) from time to time.

 

Borrower. The word “Borrower”
means OURPET’S COMPANY, VIRTU COMPANY and SMP COMPANY INCORPORATED and includes all co-signers and co-makers signing the Note and
all their successors and assigns.

 

Borrowing Base. The words
“Borrowing Base” mean AS DETERMINED BY THE LENDER FROM TIME TO TIME, THE LESSER OF (1) $5,000,000.00 OR (2) THE SUM OF
(A) 80.000% OF THE AGGREGATE AMOUNT OF ELIGIBLE ACCOUNTS, PLUS (B) 40.000% OF THE AGGREGATE AMOUNT OF ELIGIBLE INVENTORY WITH ADVANCES
LIMITED TO THE LESSER OF (A) 40.000% OF ELIGIBLE INVENTORY OR (B) $2,500,000.00.

 

Business Day. The words
“Business Day” mean a day on which commercial banks are open in the State of Ohio.

 

Collateral. The word “Collateral”
means all property and assets granted as collateral security for a Loan, whether real or personal property, whether granted directly
or indirectly, whether granted now or in the future, and whether granted in the form of a security interest, mortgage, collateral
mortgage, deed of trust, assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor’s
lien, equipment trust, conditional sale, trust receipt, lien, charge, lien or title retention contract, lease or consignment intended
as a security device, or any other security or lien interest whatsoever, whether created by law, contract, or otherwise. The word
Collateral also includes without limitation all collateral described in the Collateral section of this Agreement.

 

Eligible Accounts. The
words “Eligible Accounts” mean at any time, all of Borrower’s Accounts which contain selling terms and conditions acceptable
to Lender. The net amount of any Eligible Account against which Borrower may borrow shall exclude all returns, discounts, credits,
and offsets of any nature. Unless otherwise agreed to by Lender in writing, Eligible Accounts do not include:

 

(1) Accounts with respect to
which the Account Debtor is employee or agent of Borrower.

 

(2) Accounts with respect to
which the Account Debtor is a subsidiary of, or affiliated with Borrower or its shareholders, officers, or directors.

 

(3) Accounts with respect to
which goods are placed on consignment, guaranteed sale, or other terms by reason of which the payment by the Account Debtor may
be conditional.

 

(4) Accounts with respect to
which Borrower is or may become liable to the Account Debtor for goods sold or services rendered by the Account Debtor to Borrower.

 

(5) Accounts which are subject
to dispute, counterclaim, or setoff.

 

(6) Accounts with respect to
which the goods have not been shipped or delivered, or the services have not been rendered, to the Account Debtor.

 

(7) Accounts with respect to
which Lender, in its sole discretion, deems the creditworthiness or financial condition of the Account Debtor to be unsatisfactory.

 

(8) Accounts of any Account
Debtor who has filed or has had filed against it a petition in bankruptcy or an application for relief under any provision of any
state or federal bankruptcy, insolvency, or debtor-in-relief acts; or who has had appointed a trustee, custodian, or receiver for
the assets of such Account Debtor; or who has made an assignment for the benefit of creditors or has become insolvent or fails
generally to pay its debts (including its payrolls) as such debts become due.

 

(9) Accounts which have not
been paid in full within 90 DAYS from the invoice date. The entire balance of any Account of any single Account Debtor will
be ineligible whenever the portion of the Account which has not been paid within 90 DAYS from the invoice date is in excess
of 25.000% of the total amount outstanding on the Account.

 

(10) Accounts with respect to
which the Account Debtor is the United States government or any department or agency of the United states, without direct assignment.

 

(11) Foreign Accounts, Bonded
Receivables, Warranty Receivables, Progress Billings and Retainages

 

(12) Credits over 90 days from
the invoice date.

 

Eligible Inventory. The
words “Eligible Inventory” mean, at any time, all of Borrower’s Inventory as defined below, except:

 

(1) Inventory which is not owned
by Borrower free and clear of all security interests, liens, encumbrances, and claims of third parties.

 

(2) Inventory which Lender,
in its sole discretion, deems to be obsolete, unsalable, damaged, defective, or unfit for further processing.

 

(3) WORK IN PROCESS (WIP).

 

Environmental Laws. The
words “Environmental Laws” mean any and all state, federal and local statutes, regulations and ordinances relating to
the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. (“CERCLA”), the Superfund Amendments and Reauthorization
Act of 1986, Pub. L. No. 99-499 (“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.,
the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules,
or regulations adopted pursuant thereto.

 

Event of Default. The
words “Event of Default” mean any of the events of default set forth in this Agreement in the default section of this
Agreement.

 

Expiration Date. The words
“Expiration Date” mean the date of termination of Lender’s commitment to lend under this Agreement.

 

GAAP. The word “GAAP”
means generally accepted accounting principles.

 

    	 

    	 

    

 

Grantor. The word “Grantor”
means each and all of the persons or entities granting a Security Interest in any Collateral for the Loan, including without limitation
all Borrowers granting such a Security Interest.

 

Guarantor. The word “Guarantor”
means any guarantor, surety, or accommodation party of any or all of the Loan.

 

Guaranty. The word “Guaranty”
means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note.

 

Hazardous Substances.
The words “Hazardous Substances” mean materials that, because of their quantity, concentration or physical, chemical
or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly
used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words “Hazardous Substances”
are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste
as defined by or listed under the Environmental Laws. The term “Hazardous Substances” also includes, without limitation,
petroleum and petroleum by-products or any fraction thereof and asbestos.

 

Indebtedness. The word
“Indebtedness” means the indebtedness evidenced by the Note or Related Documents, including all principal and interest
together with all other indebtedness and costs and expenses for which Borrower is responsible under this Agreement or under any
of the Related Documents.

 

Inventory. The word “Inventory”
means all of Borrower’s raw materials, work in process, finished goods, merchandise, parts and supplies, of every kind and description,
and goods held for sale or lease or furnished under contracts of service in which Borrower now has or hereafter acquires any right,
whether held by Borrower or others, and all documents of title, warehouse receipts, bills of lading, and all other documents of
every type covering all or any part of the foregoing. Inventory includes inventory temporarily out of Borrower’s custody or possession
and all returns on Accounts.

 

Lender. The word “Lender”
means FIRSTMERIT BANK, N.A., its successors and assigns.

 

Loan. The word “Loan”
means any and all loans and financial accommodations from Lender to Borrower whether now or hereafter existing, and however evidenced,
including without limitation those loans and financial accommodations described herein or described on any exhibit or schedule
attached to this Agreement from time to time.

 

Note. The word “Note”
means the Note dated May 27, 2015 and executed by OURPET’S COMPANY, VIRTU COMPANY and SMP COMPANY INCORPORATED in the principal
amount of $5,000,000.00, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and
substitutions for the note or credit agreement.

 

Permitted Liens. The words
“Permitted Liens” mean (1) liens and security interests securing Indebtedness owed by Borrower to Lender; (2) liens for
taxes, assessments, or similar charges either not yet due or being contested in good faith; (3) liens of materialmen, mechanics,
warehousemen, or carriers, or other like liens arising in the ordinary course of business and securing obligations which are not
yet delinquent; (4) purchase money liens or purchase money security interests upon or in any property acquired or held by Borrower
in the ordinary course of business to secure indebtedness outstanding on the date of this Agreement or permitted to be incurred
under the paragraph of this Agreement titled “Indebtedness and Liens”; (5) liens and security interests which, as of
the date of this Agreement, have been disclosed to and approved by the Lender in writing; and (6) those liens and security interests
which in the aggregate constitute an immaterial and insignificant monetary amount with respect to the net value of Borrower’s assets.

 

Primary Credit Facility.
The words “Primary Credit Facility” mean the credit facility described in the Line of Credit section of this Agreement.

 

Related Documents. The
words “Related Documents” mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties,
security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and
documents, whether now or hereafter existing, executed in connection with the Loan.

 

Security Agreement. The
words “Security Agreement” mean and include without limitation any agreements, promises, covenants, arrangements, understandings
or other agreements, whether created by law, contract, or otherwise, evidencing, governing, representing, or creating a Security
Interest.

 

Security Interest. The
words “Security Interest” mean, without limitation, any and all types of collateral security, present and future, whether
in the form of a lien, charge, encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop pledge, chattel mortgage,
collateral chattel mortgage, chattel trust, factor’s lien, equipment trust, conditional sale, trust receipt, lien or title retention
contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever whether created
by law, contract, or otherwise.

 

    	 

    	 

    

 

BORROWER ACKNOWLEDGES HAVING
READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT (ASSET BASED) AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT
(ASSET BASED) IS DATED MAY 27, 2015.

 

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

 

LENDER:

 

FIRSTMERIT BANK, N.A.

 

By: David DeMichael

Authorized Officer

 

LASER PRO Lending, Ver. 14.2.0.021
Copr. D+H USA Corporation 1997, 2015. All Rights Reserved. - OH d:\laserpro\commercial\prod\CFI\LPL\C40.FC TR-5021287 PR-51 (M)

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