Document:

LEAK
OUT AGREEMENT

 

This
Leak Out Agreement (the “Agreement”) is made effective as of this 10th day of May 2017 by and between Dr. Geoff’s
by PetLife, Inc. (“DGPL”), a Maryland corporation, and a wholly-owned subsidiary of PetLife Pharmaceuticals, Inc.
(“PTLF”), a Nevada corporation (collectively, the “Company”), and Healthy Life Pets, LLC, a Wyoming
limited liability company (the “HLP”).

 

R
E C I T A L S

 

A.
Pursuant to any and all shares of common stock of PTLF issued to HLP and/or its assignees, as a condition of the issuance of the
shares of common stock, HLP agrees to a Leak Out Agreement. The purpose of the Agreement is to protect the Company from excessive
stock selling of the common stock of PTLF as traded under the stock symbol PTLF.

 

B.
Furthermore, HLP, should it become classified as an insider, is subject to the regulated times permissible for an insider to sell
their common stock on the public market.

 

C.
HLP will be issued up to 1,500,000 shares of common stock in exchange for inventory purchased, as contracted in a Supply Agreement
between the DGPL and HLP, as dated May 10, 2017, and as contracted in an Asset Purchase Agreement between DGPL and HLP, as dated
May 10, 2017 (collectively, the “Shares”).

 

D.
This Agreement covers all past and to be issued securities of PTLF.

 

E.
HLP is also bound by the various regulations of the Securities and Exchange Commission (the “SEC”), including, but
not limited to, Rule 144.

 

F.
PTLF and HLP desire and agree to place certain restrictions on the resale of the Shares.

 

A
G R E E M E N T

 

NOW,
THEREFORE, in consideration of the mutual covenants and representations set forth below, the Company and HLP agree as follows:

 

	1.	Restriction
    on Resale of Shares. Subject to the terms and conditions of this Agreement, the Company and HLP hereby agree that during
    the term of this Agreement, and until all of the Shares have been sold by HLP, HLP may sell no more than 2,000 shares of common
    stock into the market on any given trading day. Furthermore, HLP will sell shares into the market through the “ask”
    side of the market bid/ask and will not sell any shares on the “bid” side or “at market.” HLP recognizes
    the need to maintain the integrity of PTLF’s per share price in the market and agrees that selling “at market”
    or to the highest “bid” could cause a decrease in the highest price offered for shares of PTLF. Further, HLP shall
    provide a copy of this Agreement to its broker (the “Broker”) and the Broker shall be required to sign the acknowledgement
    attached hereto as Exhibit A acknowledging and agreeing to abide by the terms of this Agreement.

 

    	 	1	 

    	 		 

    

 

	2.	Private
    Transaction. If HLP desires to sell or transfer any of the Shares to another party in a private transaction, HLP must first
    obtain written approval from the Company, which approval may be withheld by the Company in its sole discretion for any or
    no reason. If the Company approves the sale or transfer by HLP, the recipient of the Shares will be required to strictly adhere
    to the same leak out restrictions as detailed above in Paragraph 1. Furthermore, prior to the sale or transfer of any of the
    Shares, the recipient must sign a binding agreement to such.

 

	3.	General
    Provisions.

 

	 	3.1.	Integration.
    This Agreement represents the entire agreement between the parties with respect to the subject matter hereof and supercedes
    and replaces any and all prior written or oral agreements regarding the subject matter of this Agreement including, but not
    limited to, any representations made during any interviews, relocation discussions or negotiations whether written or oral.
	 	 	 
	 	3.2.	Notices.
    Any notice, demand, offer, request or other communication required or permitted to be given by either the Company or HLP pursuant
    to the terms of this Agreement shall be in writing and shall be deemed effectively given the earlier of (i) when received,
    (ii) when delivered personally, (iii) one (1) business day after being delivered by facsimile (with receipt of appropriate
    confirmation), (iv) one (1) business day after being deposited with an overnight courier service or (v) four (4) days after
    being deposited in the U.S. mail, First Class with postage prepaid, and addressed to the parties at the addresses provided
    to the Company (which the Company agrees to disclose to the other parties upon request) or such other address as a party may
    request by notifying the other in writing.
	 	 	 
	 	3.3.	Successors.
    Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise)
    to all or substantially all of the Company’s business or assets shall assume the obligations under this Agreement and
    agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would
    be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company”
    shall include any successor to the Company’s business or assets that executes and delivers the assumption agreement
    described in this Section or that becomes bound by the terms of this Agreement by operation of law. Subject to the restrictions
    on transfer set forth in this Agreement, this Agreement shall be binding upon HLP and his heirs, executors, administrators,
    successors and assigns.
	 	 	 
	 	3.4.	Waiver.
    Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any
    such provision, nor prevent that party from thereafter enforcing any other provision of this Agreement. The rights granted
    both parties hereunder are cumulative and shall not constitute a waiver of either party’s right to assert any other
    legal remedy available to it.

 

    	 	2	 

    	 		 

    

 

	 	3.5.	Further
    Assurances. HLP agrees upon request to execute any further documents
    or instruments necessary or reasonably desirable in the view of the Company to carry out the purposes or intent of this Agreement.
	 	 	 
	 	3.6.	Severability.
    Should any provision of this Agreement be found to be illegal or unenforceable, the other provisions shall nevertheless remain
    effective and shall remain enforceable to the greatest extent permitted by law.
	 	 	 
	 	3.7.	Counterparts.
    This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which
    together will constitute one and the same agreement. Facsimile copies of signed signature pages shall be binding originals.
	 	 	 
	 	3.8.	Failure
    to Adhere: The Company or HLP who fails to fully adhere to the terms and conditions of this Agreement shall be liable to every
    other party for any damages suffered by any party by reason of any such breach of the terms and conditions hereof. HLP agrees
    that in the event of a breach of any of the terms and conditions of this Agreement by HLP, that in addition to all other remedies
    that may be available in law or in equity to the non-defaulting parties, a preliminary and permanent injunction, without bond
    or surety, and an order of a court requiring HLP to cease and desist from violating the terms and conditions of this Agreement
    and specifically requiring HLP to perform his/her/its obligations hereunder is fair and reasonable by reason of the inability
    of the parties to this Agreement to presently determine the type, extent or amount of damages that the Company may suffer
    as a result of any breach or continuation thereof.
	 	 	 
	 	3.9.	Governing
    Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland applicable to
    contracts entered into and to be performed wholly within said State; and the Company and HLP agree that any action based upon
    this Agreement may be brought in the United States and state courts of Maryland only, and submits himself/herself/itself to
    the jurisdiction of such courts for all purposes hereunder.
	 	 	 
	 	3.10.	Attorney
    Fees. In the event of default hereunder, the non-defaulting parties shall be entitled to recover reasonable attorney’s
    fees incurred in the enforcement of this Agreement.

 

[Remainder
of page intentionally left blank; signature page to follow.]

 

    	 	3	 

    	 		 

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first set forth above, and each party hereby
represents that it/he has read this Agreement in its entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Agreement and fully understands this Agreement.

 

	 	Dr.
    Geoff’s by PetLife, Inc.
	 	 	 
	 	By:	/s/
    Richard Salvagno
	 	 	Ralph
    Salvagno, Chairman 
	 	 	 
	 	 	Healthy
    Life Pets, LLC
	 	 	 
	 	By:	/s/
    Tracy Wardak
	 	 	Tracy
    Wardak, Manager

 

    	 	 	2

    	 		 

    

 

Exhibit
A

 

Acknowledgement
to Leak Out Agreement dated as of May 10, 2017

between
PetLife Pharmaceuticals, Inc.

and
Healthy Life Pets, LLC

 

Date:
____________

 

Dear
PetLife Pharmaceuticals, Inc.:

 

We
act as the stock broker (the “Broker”) for Healthy Life Pets, LLC (“HLP”) regarding the sale of the common
shares of PetLife Pharmaceuticals, Inc. (the “Company”). HLP has forwarded us a fully executed copy of the leak out
agreement (the “Leak Out Agreement”) executed by HLP and the Company as of May 1, 2017. We hereby acknowledge the
terms of the Leak Out Agreement and agree to abide by the terms of the Leak Out Agreement, specifically to sell no more than 2,000
shares of common stock per day and to not sell shares on the “bid” side of the bid/ask spread or “at market.”

 

Sincerely,

 

Broker
Name:____________________________________

 

		 
	By:		 
	Its:		 

 

    	 	 	3atax-ex101_6.htm

Exhibit 10.1

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

 

 

THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (the “Amendment”) is made and entered into effective May 22, 2017 by and between AMERICA FIRST MULTIFAMILY INVESTORS, L.P., a Delaware limited partnership (“Borrower”), and BANKERS TRUST COMPANY (“Bank”).

 

RECITALS

 

	
 
	
A.
	
Borrower and Bank entered into a Credit Agreement dated May 14, 2015, which was amended by a First Amendment to Credit Agreement dated January 7, 2016, a Second Amendment to Credit Agreement dated February 10, 2016, and a Third Amendment to Credit Agreement dated November 10, 2016 (as amended, the “Agreement”)(all capitalized terms not otherwise defined herein are as defined in the Agreement), pursuant to which Bank agreed to provide certain credit facilities to Borrower on the terms and conditions contained therein.

 

	
 
	
B.
	
Borrower has requested that Bank consent to certain modifications to the terms and conditions of the Agreement.  Bank is agreeable to such request on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, Borrower and Bank agree as follows:

 

	
 
	
I.
	
The terms of the Agreement are modified and amended as hereinafter provided:

 

A.Section 2.1 of Article II of the Agreement is amended by: i) changing the date in the first sentence of subsection (a) thereof from “May 13, 2018” to “May 13, 2019”; ii) replacing the form of Exhibit 2.1(a)(ii) referenced in the last sentence of subsection (a) thereof with the form of Exhibit 2.1(a)(ii) attached to this Amendment; and, iii) changing the date in the fifth sentence of subsection (c) thereof from “May 14, 2018” to “May 14, 2019.”

 

B.Section 6.1 of Article VI of the Agreement is amended by adding the following to the end of Section 6.1:

 

Without limiting the generality of the foregoing, Borrower acknowledges and agrees that the Line of Credit shall not be used for funding of any redemption of, or any distribution, dividend, or similar payment to any holder of, any of Borrower’s Series A Preferred Units (the “Series A Units”).

 

	
 
	
C.
	
Article VI of the Agreement is amended by adding the following new Section 6.6:

 

Section 6.6.  SERIES A UNITS.  Amend its limited partnership agreement or any other agreement governing the Series A Units, without providing Bank with written notice thereof (along with copies of all proposed amended agreements) at least thirty (30) days prior to the adoption of any such amendment; other than the $100 million of Series A Units offered by Borrower pursuant to a Confidential 

Private Placement Memorandum dated December 18, 2015 (the “PPM”), and other than up to an additional $20 million to be offered, on the same terms as the PPM, as a supplement or modification to the PPM, issue any additional Series A Units without providing written notice to Bank at least thirty (30) days prior to any such issuance; nor redeem any of the Series A Units without providing written notice to Bank at least one hundred eighty (180) days prior to any such redemption.

 

II.This Amendment shall be effective as of the effective date set forth above upon Bank having received an executed original hereof, together with payment to Bank from Borrower of a fee in the amount of $125,000 ($100,000 of which shall be an extension fee and $25,000 of which shall be an administration fee).

 

III.Except as amended hereby, all terms of the Agreement are hereby ratified and confirmed and remain in full force and effect, the terms of which are incorporated herein by this reference.  The parties confirm and ratify the Loan Documents, all certificates executed and delivered to Bank, and all other documents and actions relating to the obligations referred to in the Agreement, except as amended hereby.

 

IV.Borrower represents that, to its knowledge, no Event of Default has occurred or is occurring under the terms of the Agreement or under any other Loan Documents, and that no circumstances exist such that but for a lapse of time or the giving of notice an Event of Default would exist under any such agreements and that all of the covenants, representations and warranties contained in the Agreement remain true as of the date hereof except with respect to those which are made with respect to specified earlier dates.

 

V.The execution, delivery, and effectiveness of this Amendment shall not operate as a waiver of any right, power, or remedy of Bank under the Agreement or other Loan Documents, nor constitute a waiver of any provision of the Loan Documents.  This Amendment shall not affect, alter, amend, or waive any right, power or remedy of Bank by virtue of any Borrower’s actions or failure to take certain actions which constitute a default or an Event of Default under the Agreement or any of the Loan Documents.

 

VI.This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which shall be taken together and constitute one and the same agreement.  Signatures may be made and delivered by telefax or other similar method which shall be effective as originals.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; 

SIGNATURE PAGE FOLLOWS]

2

 

 

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

 

	
 
	
By:
	
AMERICA FIRST CAPITAL ASSOCIATES LIMITED PARTNERSHIP TWO, a Delaware limited partnership, its general partner

 

By: BURLINGTON CAPITAL LLC, a Delaware limited liability company, its general partner

 

 

By:  /s/Craig S. Allen

	
 
	

	
        Craig S. Allen, Chief Financial Officer

 

 

 

BANKERS TRUST COMPANY

 

 

By: /s/Donald M. Shiu

        Donald M. Shiu, Senior Vice President

 

 

3

 

EXHIBIT 2.1(a)(ii)

 

(See Attached)

 

REVOLVING LINE OF CREDIT NOTE

 

 

$50,000,000May 22, 2017

FOR VALUE RECEIVED, the undersigned AMERICA FIRST MULTIFAMILY INVESTORS, L.P., a Delaware limited partnership ("Borrower"), promises to pay to the order of BANKERS TRUST COMPANY ("Bank") at its office at 453 7th Street, Des Moines, Iowa 50309, or at such other place as the holder hereof may designate, in lawful money of the United States of America and in immediately available funds, the principal sum of Fifty Million Dollars ($50,000,000), or so much thereof as may be advanced and be outstanding, with interest thereon, to be computed on each advance from the date of its disbursement as set forth herein.

INTEREST:

(a)Interest.  The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the 30-Day London Interbank Offered Rate (LIBOR) as published in the Wall Street Journal (the “Index”).  The Index is not necessarily the lowest rate charged by Bank on its loans.  If the Index becomes unavailable during the term of this loan, Bank may designate a substitute index after notifying Borrower.  Bank will tell Borrower the current Index rate upon Borrower’s request.  The interest rate change will not occur more often than once each month on the first day of each month.  Borrower understands that Bank may make loans based on other rates as well. Interest on the unpaid principal balance on this Note will be calculated as described in the “Interest Calculation Method” paragraph using a rate equal to the Index in effect from time to time plus the Margin (as hereinafter defined and as it is adjusted from time to time).  NOTICE:  Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law.  

As used herein, the applicable “Margin” shall be determined in accordance with the following chart (with Senior Debt and Market Value of Assets defined and calculated in accordance with the terms contained in that certain Credit Agreement between Bank and Borrower dated May 14, 2015, as amended (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”)):

		
	
Senior Debt/Market Value of Assets
	
Margin

	
Over 0.70
	
3.50%

	
≥ 0.65 but < 0.70
	
3.00%

	
< 0.65
	
2.50%

 

1                                                     

 

Any change in the applicable Margin resulting from a change in the ratio of Borrower’s Senior Debt to Market Value of Assets shall be effective as of July 1 (for any change reflected in Borrower’s financial reporting for the period ending March 31), as of October 1 (for any change reflected in Borrower’s financial reporting for the period ending June 30), as of January 1 (for any change reflected in Borrower’s financial reporting for the period ending September 30), and as of April 1 (for any change reflected in Borrower’s financial reporting for the period ending December 31).

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

(c)Payment of Interest.  Interest accrued on this Note shall be payable monthly on the first day of each month, commencing June 1, 2017.

(d)Default Interest.  From and after the maturity date of this Note, or such earlier date as all principal owing hereunder becomes due and payable by acceleration or otherwise, the outstanding principal balance of this Note shall bear interest until paid in full at an increased rate per annum equal to three percent (3%) above the rate of interest from time to time applicable to this Note.

BORROWING AND REPAYMENT:

(a)Borrowing and Repayment.  Borrower may from time to time during the term of this Note borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions of this Note and of the Credit Agreement; provided however, that the total outstanding borrowings under this Note shall not at any time exceed the principal amount stated above.  The unpaid principal balance of this obligation at any time shall be the total amounts advanced hereunder by the holder hereof less the amount of principal payments made hereon by or for any Borrower, which balance may be endorsed hereon from time to time by the holder.  Each advance hereunder shall be repaid in accordance with the terms of the Credit Agreement, and with all outstanding principal and any accrued and unpaid interest due and payable in full on May 14, 2019.

(b)Advances.  Advances hereunder, to the total amount of the principal sum stated above, may be made by the holder at the oral or written request of (i) _Craig S. Allen, Andy Grier, or _Chad L. Daffer, any one acting alone, who are authorized to request advances and direct the disposition of any advances until written notice of the revocation of such authority is received by the holder at the office designated above, or (ii) any person, with respect to advances deposited to the credit of any deposit account of Borrower, which advances, when so deposited, shall be conclusively presumed to have been made to or for the benefit of Borrower regardless of the fact that persons other than those authorized to request advances may have authority to draw against such account.  The holder shall have no obligation to determine whether any person requesting an advance is or has been authorized by Borrower.

1                                                     

 

(c)Application of Payments.  Each payment made on this Note shall be credited first, to any interest then due and second, to the outstanding principal balance hereof.

EVENTS OF DEFAULT:

This Note is made pursuant to and is subject to the terms and conditions of the Credit Agreement.  Any Event of Default under the Credit Agreement shall constitute an "Event of Default" under this Note.

MISCELLANEOUS:

(a)Remedies.  Upon the occurrence of any Event of Default, the holder of this Note, at the holder's option, may declare all sums of principal and interest outstanding hereunder to be immediately due and payable without presentment, demand, notice of nonperformance, notice of protest, protest or notice of dishonor, all of which are expressly waived by Borrower, and the obligation, if any, of the holder to extend any further credit hereunder shall immediately cease and terminate.  Borrower shall pay to the holder immediately upon demand the full amount of all payments, advances, charges, costs and expenses, including reasonable attorneys' fees, reasonably expended or incurred by the holder in connection with the enforcement of the holder's rights and/or the collection of any amounts which become due to the holder under this Note, and the prosecution or defense of any action in any way related to this Note, including without limitation, any action for declaratory relief, whether incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank or any other person) relating to any Borrower or any other person or entity.

(b)Obligations Joint and Several.  Should more than one person or entity sign this Note as a Borrower, the obligations of each such Borrower shall be joint and several.

(c)Governing Law.  This Note shall be governed by and construed in accordance with the laws of the State of Iowa.

IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above.

AMERICA FIRST MULTIFAMILY INVESTORS, L.P.

By: AMERICA FIRST CAPITAL ASSOCIATES LIMITED PARTNERSHIP TWO, a Delaware limited partnership, its general partner

By:  BURLINGTON CAPITAL LLC, a Delaware limited liability company, its general partner

By:/s/Craig S. Allen
Name:   Craig S. Allen

Title:     Chief Financial Officer

 

1

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