Date: February 1, 2004
For value received, the undersigned, OurPet’s Company, (the “Borrower”), at 1300 East Street, Fairport Harbor, Ohio, 44077,
promises to pay to the order of Beachcraft Limited partnership, (“the Lender”) c/o Dr. James W. McCourt, 2213 CR 3140,
Cookville, TX 75558 (or at such other place as the Lender may designate in writing) the sum of $75,000.00 with interest from
February 1, 2004, on the unpaid principal at the rate of prime plus 3% per annum.
In addition, the Lender shall receive 56,250 three-year warrants exercisable at $0.30/share. The effective date of these warrants
will be February 1, 2004.
The principal shall be payable in full in one installment of $75,000.00, on February 1 st , 2006, the Due Date. Interest will be
payable quarterly from February 1, 2004.
All payments on this Note shall be applied first in payment of accrued interest and any remainder in payment of principal.
If the installment is not paid, in full, when due, the remaining unpaid balance and accrued interest shall become due immediately
at the option of the Lender.
The Borrower reserves the right to prepay this Note (in whole or in part) prior to the due date with no prepayment penalty.
If the payment obligation under this Note is not paid when due, the Borrower promises to pay all costs of collection, including
reasonable attorney fees, whether or not a lawsuit is commenced as part of the collection process.
If any of the following events of default occur, this Note and any other obligations of the Borrower to the Lender, shall become
due immediately, without demand or notice:
the failure of the Borrower to pay the principal and any accrued interest in full on or before the Due Date;
the filing of bankruptcy proceedings involving the Borrower as a Debtor;
the application for appointment of a receiver for the Borrower;