Document:

Cat Litter Device Development Agreement dated January 15,  2007

 Exhibit 10.27 
 CAT LITTER DEVICE DEVELOPMENT AGREEMENT 
 This Cat Litter Device Development Agreement (the
“Agreement”) is made on January 15, 2007, by and between Nottingham-Spirk Design Associates, Inc., an Ohio corporation with offices at 2200 Overlook Road, Cleveland, Ohio 44106 (“NSDA”) and OurPet’s
Company, a Colorado corporation with offices at 1300 East Street, Fairport Harbor, Ohio 44077 (“OurPets”). 
 Recitals

  

	A.	NSDA is providing services to OurPets for the development of certain pet products (the “Product”) as more full described on Exhibit A attached hereto. The
development of such Product is hereafter referred to as the “Project.” 

  

	B.	The parties expect the Project costs to exceed the original budget for development of the Product set forth in the Development Agreement and the timeline for marketing Product to
need revision, and therefore wish to memorialize their agreements with respect to the handling of these issues. 

  

	C.	Beginning in September 2006, NSDA has invoiced OurPets for their professional development costs (“Professional Fees”) for the Product less a fifty percent
(50%) deferral for future consideration (the “Deferred Costs”). 

  

	D.	Through November 2005, the accumulated Deferred Costs were $86,200.00 and the total Deferred Costs upon completion of the Project are estimated to be $132,425.00.

 NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained in this Agreement, and other good
and valuable consideration, the receipt and sufficiency of which is acknowledged by each party, NSDA and OurPets agree as follows: 
 1.
Payment of Deferred and Non-Deferred Costs. 
 (a) Payment of Non-Deferred Costs. NSDA shall invoice OurPet’s for
the non-deferred fifty percent (50%) of its Professional Fees plus its out-of-pocket expenses at actual cost as incurred. 
 (b)
Restricted Shares. As payment for Fifty Thousand Dollars ($50,000) of the Deferred Costs, OurPets will issue shares of its common stock (the “Shares”). Such Shares shall be restricted securities pursuant to Rule 144 of the
Securities Act of 1933, as amended (“Rule 144”), and will bear a legend to such effect upon issuance. The number of Shares to be issued shall be calculated by dividing $50,000 by the average closing price of the Shares over the last
ten (10) trading days prior to the date of this Agreement. 
 (c) Royalty Payments. At such time as the Product is available for
sale in the marketplace, NSDA shall be entitled to receive a royalty payment of $0.20 per unit of Product sold (the “Royalty Payment”). Royalty Payments would be paid on a quarterly basis, within thirty (30) days of each
quarter end. 

 2. Termination of Royalty Payment. NSDA’s right to receive Royalty Payments shall
automatically terminate at such time that all outstanding Deferred Costs which are due and payable hereunder are paid in full, unless earlier terminated by mutual agreement of the parties. 
 3. Estimated Timeline. The parties anticipate that the Product will be ready to market by the summer of 2007 and will use commercially
reasonable efforts to stay within this timeline. 
 4. Cost Control. NSDA shall use its best efforts to minimize the Remaining
Costs incurred in completing the development of the Product. 
 5. Progress Reports. NSDA shall provide OurPets with monthly
progress reports detailing the progress achieved and anticipated actions that remains to be completed. Such progress reports shall include updates on Remaining Costs incurred to date and estimated expenditures to complete the development of the
Product. 
 6. Audit Rights. 
 (a) NSDA shall keep complete and accurate records pertaining to the development costs of the Product in sufficient detail to permit OurPets and/or its authorized representatives to confirm the accuracy of all
Remaining Costs due hereunder. OurPets shall have the right to cause an independent accountant to which NSDA has no reasonable objection to audit such records. Such audit rights may be exercised no more often than once a year, upon notice to NSDA
and during normal business hours. OurPets will bear the full cost of such audit unless such audit discloses material overcharges with respect to the Remaining Costs, in amount that constitutes more than five percent (5%) of the Remaining Costs
due pursuant to this Agreement. In such case, NSDA shall bear the full cost of such audit. 
 (b) OurPets shall keep complete and accurate
records pertaining to the Royalty Payments due pursuant to its sale of Product in sufficient detail to permit NSDA and/or its authorized representatives to confirm the accuracy of all Royalty Payments due hereunder. NSDA shall have the right to
cause an independent accountant to which OurPets has no reasonable objection to audit such records. Such audit rights may be exercised no more often than once a year, upon notice to OurPets and during normal business hours. NSDA will bear the full
cost of such audit unless such audit discloses an underpayment of more than five percent (5%) from the amount of Royalty Payments due pursuant to this Agreement. In such case, OurPets shall bear the full cost of such audit. 
 7. Board Approval. This Agreement is not effective and binding upon OurPets until such time as OurPet’s Board of Directors approves
the Agreement. 
 8. Restricted Securities. NSDA acknowledges that (a) the Shares are characterized as “restricted
securities” under the federal securities laws inasmuch as they are being acquired 

 
from OurPets in a transaction not involving a public offering, and must be held indefinitely unless they are subsequently registered under the Securities Act
or an exemption from such registration is available, and (b) has been advised or is aware of the provisions of Rule 144, which permits limited resale of shares of such “restricted securities” subject to the satisfaction of certain
conditions (which conditions cannot presently be satisfied). 
 9. Conflict. Except as set forth herein, all other terms and
conditions in the Agreement remain in full force and effect. In the event of a conflict between the terms and conditions set forth in this Agreement and those set forth in the Agreement, this Agreement shall control. 
 10. Miscellaneous. 
 (a)
Governing Law. This Agreement is entered into in the State of Ohio and shall be interpreted and enforced under the laws of the State of Ohio. 
 (b) Amendment and Waiver. This Agreement may only be amended in writing and signed by both parties. Any waiver of a provision in this Agreement by either party shall be in writing and signed by such party. The
waiver by either party of any condition or of a breach of any other provision of this Agreement shall not be construed as a waiver of any other condition or later breach. 
 (c) Severability. Any term or provision of this Agreement which is invalid or unenforceable shall be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable
the remaining terms and provisions of this Agreement. 
 (d) Binding Effect and Benefits. This Agreement shall inure to the benefit of
and shall be binding upon the parties hereto and their respective heirs, legal representatives, successors and permitted assigns. 
 (e)
Counterparts. This Agreement may be executed in any number of counterparts, including by facsimile or electronic signature included in an Adobe PDF file, each of which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument. This Agreement shall become effective when each party hereto shall have received original or facsimile counterparts thereof signed by all of the other parties hereto. 
 Signature page follows 
  

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first set forth
above. 
  

											
	NSDA:	 		 		 	OURPETS:
				
	Nottingham-Spirk Design Associates, Inc.,	 		 		 	OurPet’s Company,
	an Ohio corporation	 		 		 	a Colorado corporation
						
	By:	 	 /s/ John Nottingham
	 		 		 	By:	 	 /s/ Steven Tsengas

	Name:	 	John Nottingham	 		 		 	Name:	 	Steven Tsengas
	Title:	 	Co-President	 		 		 	Title:	 	President and CEOForm of Indemnification Agreement

 Exhibit 10.28 
 INDEMNIFICATION AGREEMENT 
 THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is
executed as of the          day of January, 2007, by OurPet’s Company, a Colorado corporation (the “Company”) and
                    , an individual (the “Indemnitee”). 
 WHEREAS, the Indemnitee has agreed to serve as a member of the Company’s Board of Directors; and 
 WHEREAS, the Indemnitee is willing to serve as a director of the Company only in the event that the Company and the Indemnitee execute this Agreement.

 NOW, THEREFORE, in consideration of the foregoing and the terms and conditions set forth herein, the Company agrees in favor of the
Indemnitee as follows: 
  

	 	1.	Indemnification. 

 (a) Except as
otherwise provided herein, to the fullest extent permitted by the Colorado Business Corporation Act, the Company shall indemnify and hold harmless the Indemnitee and the Indemnitee’s representatives, heirs, successors and assigns from and
against all damages, costs, losses, liabilities and expenses, including, without limitation, attorneys’ fees, judgments, fines and amounts paid in settlement, incurred by the Indemnitee by reason of the fact that the Indemnitee is or was a
director and/or officer of the Company or is or was serving at the request of the Company as a director and/or officer, trustee, employee or agent of another domestic or foreign, nonprofit or for profit, corporation, partnership, joint venture,
trust or other enterprise. 
 (b) Unless otherwise required by applicable law, the Company shall have no obligation to
indemnify the Indemnitee in connection with any action, suit or proceeding (collectively, “Proceeding”) if, in connection with the matter upon which the Proceeding is based, (i) the Indemnitee failed to act in good faith or in a
manner reasonably believed to be in, or not opposed to, the best interests of the Company, (ii) in connection with any criminal Proceeding, the Indemnitee had reasonable cause to believe his conduct was unlawful or (iii) if the Indemnitee
has been adjudged liable to the Company. 
 (c) All costs and expenses, including, without limitation, attorneys’ fees,
incurred by the Indemnitee with respect to which the Indemnitee is entitled to the indemnification set forth in paragraph 1 hereof shall be paid promptly by the Company as they are incurred by the Indemnitee upon notice thereof from the Indemnitee
to the Company. 
 (d) The foregoing provisions of this paragraph 1 shall continue to apply to the Indemnitee after he has
ceased to be a director and/or officer of the Company or has ceased to serve at its request as set forth above. 

 (e) To the extent the Company maintains an insurance policy or policies providing
directors’ and officers’ liability insurance coverage, the Indemnitee will be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any director or officer under such
policy. 
  

	 	2.	Miscellaneous. 

 (a) This Agreement
shall be governed by, and construed and enforced in accordance with, the laws of the State of Colorado, without regard to principles of conflicts of law. 
 (b) The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have under the Company’s [Certificate of Incorporation and/or By-Laws], or the substantive laws of the
Company’s jurisdiction of incorporation, any other contract or otherwise (collectively, “Other Indemnity Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would have any greater right to
indemnification under any Other Indemnity Provision, Indemnitee will be deemed to have such greater right hereunder; and (b) to the extent that any change is made to any Other Indemnity Provision which permits any greater right to the
indemnification than that provided under this Indemnification Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder. The Company has not previously adopted, and will not adopt, any amendment to its
[Certificate of Incorporation and/or By-Laws] the effect of which would be to deny, diminish or encumber Indemnitee’s right to indemnification under this Indemnification Agreement or any Other Indemnity Provision. 
 (c) This agreement may not be assigned by either party hereto without the consent of the other party hereto. This Agreement shall be
binding upon and shall inure to the benefit of the Company and the Indemnitee and their respective heirs, executors, legal representatives, successors and assigns. 
 (d) This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more
than one party, but all such counterparts taken together shall constitute one and the same Agreement. 
 (e) Whenever
possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is finally determined by a court of competent jurisdiction to be unenforceable or
invalid under applicable law, such provision will be effective only to the extent of its enforceability or validity, without affecting the enforceability or validity of the remainder of this Agreement, and the parties agree that such court shall
have jurisdiction to reform this Agreement to the maximum extent permitted by law, and the parties agree to abide by the court’s determination. In the event that any such provision of this Agreement cannot be reformed, such provision will be
deemed severed from this Agreement, but every other provision of this Agreement shall remain in full force and effect. 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. 
  

							
		 		 	OURPET’S COMPANY
				
	  
	 		 	By:	 	  

	[PRINT NAME]	 		 	Name:	 	John G. Murchie
		 		 	Title:	 	Vice President & Treasurer

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