Document:

Dejour Energy Inc.: Exhibit 4.27 - Filed by newsfilecorp.com

February 18, 2014 

 

Dejour Energy (Alberta) Ltd. 
c/o Dejour Energy Inc.

#598 – 999 Canada Place 
Vancouver, BC V6C 3E1 

 

	ATTENTION: 	Mr. David Matheson 	Mr. Robert Hodgkinson 
	  	Chief Financial Officer 	Co-Chairman and CEO
    

Dear Sirs: 

RE: CREDIT FACILITIES – CANADIAN WESTERN BANK / DEJOUR
ENERGY (ALBERTA) LTD. 

We are please to advise that Canadian Western Bank has approved
the following amended Credit Facilities for Dejour Energy (Alberta) Ltd.,
subject to the terms and conditions of the accepted Commitment Letter dated
March 25, 2013 and the amending Commitment Letters dated June 5, 2013, December
16, 2013 and January 28, 2014, which terms and conditions will remain in full
force and effect, as amended below. 

	BORROWER: 	
      DEJOUR ENERGY (ALBERTA) LTD, (the
      “Borrower”). 

	  	     
	GUARANTOR: 	
      DEJOUR ENERGY INC. and DEJOUR ENERGY (USA)
      CORP. (collectively the “Guarantor”). 

	  	     
	LENDER: 	
      CANADIAN WESTERN BANK (the Bank”).
  

	  	     
	CREDIT FACILITY A: 	
      REVOLVING REDUCING OPERATING DEMAND LOAN (the
      “Credit Facility A”). 

	  	     
	MAXIMUM AMOUNT: 	
      $3,500,000. (the “Availability A”) 

	  	     
	AVAILABILITY: 	
      Prime Rate Loan (“Prime Rate Loan”). Revolving in whole
      multiples of $50,000. 

	  	     
		
      All amounts outstanding under this Credit Facility A are
      payable on demand and subject to the Bank’s right to make such demand at
      any time. 

	  	     
		
      In the event the proposed acquisition from Aduro
      Resources Ltd. (“Aduro) does not proceed by March 31, 2014, Availability A
      will reduce by $300,000 effective April 1, 2013 or earlier, upon the
      Borrower advising the Bank that the Aduro acquisition will not proceed.
      Availability A will still reduce by $100,000 per month on the first of
      each month beginning March 1, 2014. 

Suite 204, 606 – 4 Street S.W., Calgary, Alberta T2P 1T1
TELEPHONE (403) 750-3599 FAX: (403) 264-1619                 

2

	
      SECURITY: 
	
      The following security (the “Existing Security”) has been
      completed, duly executed, delivered, perfected and registered, where
      necessary, t the entire satisfaction of the Bank and its counsel.
  

	 	1. 	
      $10,000,000 Debenture with a first floating charge over
      all assets of the Borrower (first security interest in personal property)
      with an understanding to provide fixed charges on the Borrower’s petroleum
      and natural gas properties at the request of the Bank, and pledge of such
      Debenture;

	 	 	 
	 	2. 	
      Supplemental Debenture with fixed charges on the
      Borrower’s Drake/Woodrush, BC petroleum and natural gas
property;

	 	 	 
	 	3. 	
      Revolving Credit Agreement in the amount of $3,700,000 by
      the Borrower;

	 	 	 
	 	4. 	
      General Assignment of Book Debts by the
  Borrower;

	 	 	 
	 	5. 	
      evidence of insurance coverage in accordance with
      industry standards designating the Bank as first loss payee in respect of
      the proceeds of the insurance and an additional insured;

	 	 	 
	 	6. 	
      appropriate title representation from the Borrower
      (officer’s certificate as to title) including a schedule of petroleum and
      natural gas reserves described by lease (type, date, term, parties), legal
      description (wells and spacing units), interest (working interest or other
      APO/BPO interests), overrides (APO/BPO), gross overrides, and other liens,
      encumbrances, and overrides;

	 	 	 
	 	7. 	
      evidence of extra-provincial registrations of the
      Borrower where applicable;

	 	 	 
	 	8. 	
      Full Liability Guarantee provided by Dejour Energy Inc.
      supported by:

	 	a) 	
      $10,000,000 Debenture with a first floating charge over
      all assets of the Dejour Energy Inc. (first security interest in personal
      property) with an undertaking to provide fixed charges on the Dejour
      Energy Inc.’s petroleum and natural gas properties at the request of the
      Bank, and pledge of such Debenture;

	 	9. 	
      Subordination/Postponement Agreement regarding loan
      payable to Dejour Energy Inc.;

	 	 	 
	 	10. 	
      Unlimited Guaranty Agreement provided by Dejour Energy
      (USA) Corp. supported by:

	 	a) 	
      Second Charge Mortgage, Assignment of Production,
      Security Agreement and Financing Statement;
and

	 	11. 	
      legal opinion of the Bank’s
counsel.

The following security (the
“Additional Security”) shall be completed, duly executed, delivered, perfected
and registered, where necessary, to the satisfaction of the Bank and its
counsel, and shall form part of the Security. 

	 	1. 	
      Commitment Letter dated February 18, 2014;
  and

3

	 	2. 	
      such other security, documents, and agreements that the
      Bank or its legal counsel may reasonably
request.

		
      The Existing Security and Additional Security (together
      the “Security”) to be perfected/registered, at a minimum, in the
      Province of Alberta and British Columbia in a first priority position, and
      in the second position in such jurisdictions in the United Stated as
      required, subject only to Permitted Encumbrances. All present and future
      Security shall be held by the Bank as continuing security for all present
      and future debts, obligations and liabilities (whether direct or indirect,
      absolute or contingent) of the Loan Parties to the Bank including without
      limitation for the repayment of all loans and advances made herein and for
      other loans and advances that may be made from time to time in the future
      whether herein or otherwise. The Security shall be in form and substance
      satisfactory to the Bank and its counsel. 

	  	     
	REPRESENTATONS AND WARRANTIES: 	
      Each Loan Party represents and warrants to the Bank (all
      of which representations and warranties each Loan Party hereby
      acknowledges are being relied upon by the Bank in entering into this
      Commitment Letter) that: 

	 	1. 	
      there has been no adverse material change in the
      financial position of any Loan Party since the date of its most recent
      consolidated and non- consolidated financial statements dated September
      30, 2013 which was furnished to the Bank. Such financial statements fairly
      present the financial position of each Loan Party at the date that they
      were drawn up.

	
      CONDITIONS PRECEDENT: 
	
      Prior to each advance under Credit Facility A, the
      Borrower shall have provided, executed or satisfied the following, to the
      Bank’s satisfaction (collectively with all other conditions precedent set
      out in this Commitment Letter, called the “Conditions Precedent”):
      

	 	1. 	
      all Additional Security shall be duly completed,
      authorized, executed delivered by each Loan Party which is a party
      thereto, and perfected and registered, all to the satisfaction of the Bank
      and its counsel;

	 	 	 
	 	2. 	
      no further Default or Event Default shall
exist;

	 	 	 
	 	3. 	
      no Material Adverse Effect has occurred with respect to
      an Loan Party or the Security;

	 	 	 
	 	4. 	
      all representations and warranties of each Loan Party
      shall be true and correct;

	 	 	 
	 	5. 	
      The Borrower confirming that a minimum of $100,000 equity
      (after any fees or expenses) has been contributed to complete the Aduro
      acquisition; and

	 	 	 
	 	6. 	
      Any other document that may be reasonably requested by
      the Bank.

The above conditions are inserted for
the sole benefit of the Bank, and may be waived by the Bank in whole or in part
(with or without terms or conditions) in respect of any particular Advance,
provided that any waiver shall not be binding unless given in writing and shall
not derogate from the Bank to insist on the satisfaction of any condition not
expressly waived in writing or to insist on the satisfaction of any condition waived in writing which may
be requested in the future. 

4

	REVIEW: 	
      Without detracting from the demand nature of the Credit
      Facilities, the Credit Facilities are subject to periodic review by the
      Bank periodically in its sole discretion (each such review is deferred to
      in this Commitment Letter as a “Review”) and at a minimum will be
      reviews on an annual basis. The Annual Review is scheduled on or before
      May 1, 2014, but may be set at an earlier or later date at the sole
      discretion of the Bank. 

	  	     
	EXPIRY DATE: 	
      The Commitment Letter is open for acceptance until
      February 25, 2014 (as may be extended from time to time as follows, the
      “Expiry Date”) at which time it shall expire unless extended by
      mutual consent in writing. We reserve the right to cancel this Commitment
      Letter at any time prior to acceptance. 

If the foregoing terms and conditions are acceptable, please
sign two copies of this Commitment Letter and return one copy to the Bank by the
Expiry Date. This Commitment Letter may be executed in any number of
counterparts and delivered by facsimile or other electronic copy, each of which
when executed and delivered shall be deemed to be an original, and such
counterparts together shall constitute one and the same agreement. 

Sincerely, 

CANADIAN WESTERN BANK 

	/s/ Daryl Anderson 	/s/ Tim Bacon 
	Senior Manager, 	AVP, 
	Energy Lending Group 	Energy Lending Group 

AGREED AND ACCEPTED this 19th day of
February, 2014 

5

APPENDIX A 

	CREDIT: 	Daryl Anderson 	Tim Bacon 
	  	Senior Manager, 	AVP, 
	  	Energy Lending Group 	Energy Lending Group 
	  	  	  
	  	Direct: (403) 750-3598 	Direct: (403) 750-3579 
	  	Cell: (403) 554-4870 	Cell: (403) 701-8492 
	  	Facsimile: (403) 264-1619 	Facsimile: (403) 264-1619 
	  	Email: Daryl.Anderson@cwbank.com    	Email: Tim.Bacon@cwbank.com

	ADMINISTRATION: 	L/C/Gs: Visa: Loan/Account Balances; 	Account Representative: 	Monique Thompson 
	  	Payments; Bank Drafts; Bank 	Telephone: 	(403) 268-7841 
	  	Confirmations; General 	Facsimile: 	(403) 750-3596 
	  	  	E-Mail: 	Monique.Thompson@cwbank.com 
	  	  	  	  
	  	  	Account Representative: 	Mayra Mercado O’Brien 
	  	  	Telephone: 	(403) 268-7841 
	  	  	Facsimile: 	(403) 750-3596 
	  	  	E-Mail: 	Myra.Mercado@cwbank.com 
	  	  	  	  
	BRANCH: 	Calgary Main Branch 	Telephone: 	(403) 262-8700 
	  	#100, 606 – 4 Street S.W. 	Facsimile: 	(403) 262-4899 
	  	T2P 1T1 	  	  
	  	  	  	  
	BUSINESS 	Order Cheques; Current Account 	Account Representative: 	Anita Latif 
	ACCOUNTS 	Documents/ Operations; Signing 	Telephone: 	(403) 750-3576 
	  	Authorities; Rates; Investments; 	Facsimile: 	(403) 750-4899 
	  	Customer Automated Funds Transfer 	E-mail 	Anita.Latif@cwbank.com 
	  	(CAFT) 	  	  
	  	  	  	  
	INTERNET 	Loan/Account Balances; Traces, Stop 	Website: 	www.CWBANK.com 
	BANKING 	Payments, List of Current Account 	  	  
	  	Transactions; Pay Bills; Transfer 	  	  
	  	Between Accounts; Exchange Rates 	  	  
	  	Quotes 	  	  
	  	  	  	  
	OTHER: 	Personal/Retail Banking 	Manager: 	William Lee 
	  	  	Telephone: 	(403) 268-7842 
	  	  	Cell: 	(403) 818-6244 
	  	  	Facsimile: 	(403) 233-2857 
	  	  	E-mail: 	William.Lee@cwbank.com 
	  	  	  	  
	VALIANT TRUST: 	Corporate Trust Services; Stock 	Website: 	www.VALIANTTRUST.com 
	  	Transfer Agent; Employee Incentive 	Contact: 	Les Stastook 
	  	Plans 	  	Director, Business Development 
	  	  	Telephone: 	(403) 781-8754 
	  	  	Cell: 	(403) 848-6244 
	  	  	Facsimile: 	(403) 233-2857 
	  	  	E-mail: 	Les.Stastook@valianttrust.comLTM-2014-Q1 Exhibit 10.1 (Final)

EXHIBIT 10.1 
  
Life Time Fitness, Inc.
2011 Long-Term Incentive Plan

Restricted Stock Agreement 
(2014 Grant with EPS Performance Metrics)

	
		
	Name of Employee:

	No. of Shares Covered:     
	Date of Issuance:

	Vesting Schedule pursuant to Section 2 (Cumulative):

	

Vesting Date(s)

March 1, 2015
March 1, 2016
March 1, 2017
March 1, 2018

	No. of Shares Which
Become Vested as of Such Date

This is a Restricted Stock Agreement (the “Agreement”) between Life Time Fitness, Inc., a Minnesota corporation (the “Company”), and the employee identified above (the “Employee”) effective as of the date of issuance specified above.
RECITALS
WHEREAS, the Company maintains the Life Time Fitness, Inc. 2011 Long-Term Incentive Plan (the “Plan”);
WHEREAS, pursuant to the Plan, the Company’s Compensation Committee, a committee of the Board of Directors (the “Committee”), administers the Plan and the Committee has the authority to grant awards under the Plan on behalf of the Company;
WHEREAS, the Committee has determined that the Employee is eligible to receive such an award under the Plan;
NOW, THEREFORE, the Company hereby grants this award of Restricted Shares to the Employee under the terms and conditions as follows.
TERMS AND CONDITIONS
1.    Grant of Restricted Stock.

(a)    Subject to the terms and conditions of this Agreement, the Company has issued to the Employee the number of Shares specified at the beginning of this Agreement.  These Shares are 

-1 of 6-

subject to the restrictions provided for in this Agreement and are referred to collectively as the “Restricted Shares” and each as a “Restricted Share.”

(b)    The Restricted Shares will be evidenced by a book entry made in the records of the Company’s transfer agent in the name of the Employee (unless the Employee requests a certificate evidencing the Restricted Shares).  All restrictions provided for in this Agreement will apply to each Restricted Share and to any other securities distributed with respect to that Restricted Share.  Each Restricted Share will remain restricted and subject to forfeiture to the Company unless and until that Restricted Share has vested in the Employee in accordance with all of the terms and conditions of this Agreement.  If a certificate evidencing any Restricted Share is requested by the Employee, the Company shall retain custody of any such certificate throughout the period during which any restrictions are in effect and require, as a condition to issuing any such certificate, that the Employee tender to the Company a stock power duly executed in blank relating to such custody.

		
	2.
	Vesting.   The Restricted Shares that have not previously been forfeited will vest in the numbers and on the dates specified in the Vesting Schedule at the beginning of this Agreement.  In addition, the Restricted Shares that have not previously vested or been forfeited will vest immediately upon the first to occur of the following events: (i) death of the Employee; (ii) Total Disability of the Employee; (iii) in the event that the Employee’s employment is terminate by the Company for any reason other than Cause following a Change of Control as defined in the Plan within two years of such Change of Control; and (iv) a Change of Control if this Agreement is not assumed or replaced by the surviving or acquiring entity on economically equivalent terms, as determined by the Committee.  Notwithstanding the foregoing, the number of Restricted Shares vesting on each date specified in the Vesting Schedule at the beginning of this Agreement may be reduced based upon the relationship of the Company’s actual fully-diluted earnings-per-share (“EPS”) for 2014 to budgeted EPS for 2014 and the achievement of positive net income for 2014, as specifically set forth on Exhibit A attached hereto, as such targets may be amended from time-to-time by the Board.

Fully-diluted earnings-per-share shall have the same meanings as in the Company’s financial statements and calculated in accordance with GAAP on the Date of Issuance, provided that such metric shall be initially calculated so as to exclude all extraordinary and non-recurring events that have a negative impact on the financial metrics and to include all extraordinary and non-recurring events that have a positive impact on the financial metrics, subject to the further discretion of the Committee described below and, provided further, that in all cases, the metrics shall be calculated to include the compensation expense the Company has or would have recognized assuming that the vesting of all the Restricted Shares (and all awards of restricted shares with performance- or market-based vesting conditions) was probable on the date of grant, regardless of the amount actually recognized or any reversal of expense that may be recognized.  The Committee shall have discretion to make such adjustments as it deems appropriate to the calculation of the financial metrics described above for purposes of determining whether the metrics have been satisfied, provided that no such adjustment shall be made that has the effect of causing the financial metrics to be satisfied (i.e., only “negative” discretion, which has the effect of precluding the vesting of the Restricted Shares, is permitted). The Committee shall determine whether the performance hurdle was achieved as promptly as practicable following review of the Company’s audited fiscal 2014 financial results.

In the event that a reduction is applied to the Vesting Schedule at the beginning of this Agreement (a) such a reduction shall occur immediately upon determination by the Committee that the performance hurdle was not achieved and (b) if such reduction would cause the number of Restricted 

Shares subject to vesting on each date specified in the Vesting Schedule to be a fraction of a share, the number of Restricted Shares subject to vesting on each of the first two dates specified in the Vesting Schedule shall be rounded down to the nearest whole-share while the number of Restricted Shares subject to vesting on each of the last two dates specified in the Vesting Schedule shall be rounded up to the nearest whole-share.  

		
	3.
	Lapse of Restrictions; Issuance of Unrestricted Shares.  Upon the vesting of any Restricted Shares, such vested Restricted Shares will no longer be subject to forfeiture as provided in Section 4 of this Agreement.  Upon the vesting of any Restricted Shares, all restrictions on such Restricted Shares will lapse.

		
	4.
	Forfeiture. In the event that (i) the Employee’s employment is terminated for any reason, whether by the Company, by the Employee or otherwise, voluntarily or involuntarily, other than in the circumstances described in Section 2 of this Agreement, (ii) the Company fails to meet the performance targets specified in Section 2 (but only to the extent of forfeiture as specified in Section 2) or (ii) the Employee attempts to sell, assign, transfer or otherwise dispose of, or mortgage, pledge or otherwise encumber any of the Restricted Shares or the Restricted Shares become subject to attachment or any similar involuntary process, then any Restricted Shares that have not previously vested shall be forfeited by the Employee to the Company, the Employee shall thereafter have no right, title or interest whatever in such Restricted Shares (and any dividends accrued with respect to such Restricted Shares), and, if the Company does not have custody of any and all certificates representing Restricted Shares so forfeited, the Employee shall immediately return to the Company any and all certificates representing Restricted Shares so forfeited.  If the Restricted Shares are evidenced by a book entry made in the records of the Company’s transfer agent, then the Company will be authorized to cause such book entry to be adjusted to reflect the number of Restricted Shares so forfeited.

		
	5.
	Shareholder Rights.  As of the date of issuance specified at the beginning of this Agreement, the Employee shall have all of the rights of a shareholder of the Company with respect to the Restricted Shares (including voting rights and the right to receive dividends and other distributions); provided, however, any dividends declared and paid on the Restricted Shares prior to vesting shall be accrued and held  by the Company as a general obligation and paid to the Employee only if, when and to the extent the related Restricted Shares vest and become non-forfeitable as provided in Section 2 hereof.  

		
	6.
	Restrictive Legends and Stop-Transfer Orders.

(a)    The book entry or certificate representing the Restricted Shares shall contain a notation or bear the following legend (as well as any notations or legends required by applicable state and federal corporate and securities laws) noting the existence of the restrictions and the Company’s rights to reacquire the Restricted Shares set forth in this Agreement:
“THE SHARES REPRESENTED BY THIS [BOOK ENTRY] [CERTIFICATE] MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF A RESTRICTED STOCK AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.”
(b)    The Employee agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, 

and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.
        
(c)    The Company shall not be required (i) to transfer on its books any Restricted Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement, or (ii) to treat as owner of the Restricted Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom the Restricted Shares shall have been so transferred.

		
	7.
	Tax Consequences and Withholdings. The Employee understands that unless a proper and timely Section 83(b) election has been made as further described below, generally under Section 83 of the Code, at the time the Restricted Shares vest, the Employee will be obligated to recognize ordinary income and be taxed in an amount equal to the Fair Market Value as of the date of vesting for the Restricted Shares then vesting.  The Employee shall be solely responsible for any tax obligations that may arise as a result of the Restricted Shares.  

		
	8.
	Section 83(b) Election.  The Employee has been informed that, with respect to the grant of Restricted Shares, an election may be filed by the Employee with the Internal Revenue Service, within 30 days of the date of issuance, electing pursuant to Section 83(b) of the Code to be taxed currently on the Fair Market Value of the Restricted Shares on the date of issuance.  The Employee acknowledges that it is the Employee’s sole responsibility to timely file the election under Section 83(b) of the Code.

If the Employee makes such election, the Employee shall promptly provide the Company a copy and the Company may require at the time of such election an additional payment for withholding tax purposes based on the Fair Market Value of the Restricted Shares as of the date of issuance.

		
	9.
	Discontinuance of Employment.  This Agreement shall not give the Employee a right to continued employment with the Company or any parent or subsidiary of the Company, and the Company or any such parent or subsidiary employing the Employee may terminate his/her employment at any time and otherwise deal with the Employee without regard to the effect it may have upon him/her under this Agreement.

		
	10.
	Interpretation of This Agreement.  All decisions and interpretations made by the Committee with regard to any question arising hereunder or under the Plan shall be binding and conclusive upon the Company and the Employee.  If there is any inconsistency between the provisions of this Agreement and the Plan, the provisions of the Plan shall govern.

		
	11.
	Award Subject to Plan, Articles of Incorporation and By‐Laws.  The Employee acknowledges that the Restricted Shares are subject to the Plan, the Articles of Incorporation, as amended from time to time, and the By‐Laws, as amended from time to time, of the Company, and any applicable federal or state laws, rules or regulations.

		
	12.
	Binding Effect.  This Agreement shall be binding in all respects on the heirs, representatives, successors and assigns of the Employee.

		
	13.
	Choice of Law.  This Agreement is entered into under the laws of the State of Minnesota and shall be construed and interpreted thereunder (without regard to its conflict of law principles).

    
[Signature Page Follows]

IN WITNESS WHEREOF, the Employee and the Company have executed this Agreement as of the ____ day of ____________, 20___.

EMPLOYEE

        
[Name]

LIFE TIME FITNESS, INC.  (the “Company”)

By    
 
       Its Executive Vice President

Exhibit A

Restricted Stock
Forfeiture Table

		
	Actual EPS for 2014 as a Percentage
	Percentage of Original Restricted Shares 

of 2014 Budgeted EPS                            Granted to be Forfeited            

100% or Above                            0%
99% to 100%                                2%
98% to 99%                                4%
97% to 98%                                6%
96% to 97%                                8%
95% to 96%                                10%
94% to 95%                                12%
93% to 94%                                14%
92% to 93%                                16%
91% to 92%                                18%
90% to 91%                                20%
89% to 90%                                24%
88% to 89%                                28%
87% to 88%                                32%
86% to 87%                                36%
85% to 86%                                40%
84% to 85%                                44%
83% to 84%                                48%
83% or Less                                50%

In the event that the Company’s net income for 2014 is less than $0, the entire amount of restricted shares granted pursuant to this Restricted Stock Agreement shall be forfeited in full.

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