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EXHIBIT 10.5
 
 
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October 13, 2011

PERSONAL & CONFIDENTIAL
Mr. Duncan Nightingale
c/o Gran Tierra Energy Inc.
300, 625-11th Avenue SW
Calgary, AB T2R 0E1

Dear Duncan:
 
RE:
AMENDMENT TO EXPATRIATE ASSIGNMENT AGREEMENT TO GRAN TIERRA ENERGY COLOMBIA LTD.
(“GTEC”) DATED DECEMBER 7, 2010 (“EXPATRIATE AGREEMENT”) RE:  PROMOTION TO
PRESIDENT OF GRAN TIERRA ENERGY, COLOMBIA

We are very pleased that you have accepted the promotion to President of Gran
Tierra Energy, Colombia effective August 17, 2011. You will continue to remain
an employee of Gran Tierra Energy Inc. (“GTEI”), on secondment to GTEC, and will
be considered on an international assignment to Bogotá, Colombia. This letter
states the amendments to the Expatriate Agreement effective with your promotion.

Please note that this assignment is conditional on you maintaining all necessary
permits and approvals to work in Colombia, including a valid Work Permit and
Residency Visa by the applicable Colombia authorities. This assignment is also
conditional on you continuing to comply with all Canadian and Colombia laws and
regulations, including all tax and social security laws and regulations.

 
1.
EFFECTIVE DATE OF AMENDMENT:  August 17, 2011

 
 
2.
POSITION:  President of Gran Tierra Energy, Colombia  (Duties and
Responsibilities attached as Schedule A).

 
 
3.
DURATION:  No change.

 
 
4.
REPORTING TO:  Chief Operating Officer, Calgary.

 
 
5.
COMPENSATION:

 
 
A.
Your total annual base salary will be CDN$300,000 (inclusive of 13.5 monthly
payments and all extra-legal payments) effective August 17, 2011.   Your base
salary will be reviewed on an annual basis as part of the normal salary planning
process.   A hypothetical tax of 35% will be deducted from your base pay.

 
 
B.
Your Short Term Incentive Bonus (STI) target is 60%.  Your STIP weighting is 30%
Corporate, 30% Individual, and 40% Business Unit.  A hypothetical tax rate of
39% will be deducted from any bonus paid because this is the highest marginal
tax bracket for Alberta, Canada.

 
 
C.
Long Term Incentive Plan (LTIP):  You are eligible for the Long Term Incentive
Plan (LTIP) at the country president level.

 
 
D.
Expatriate benefits package:  No change.

 
 
 

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E.
Out-of-country health care coverage:  No change.

 
 
F.
Hardship Location Payment:  No change (remains at 20%, but paid on new annual
base salary).

 
 
G.
Goods and Services Differential:  Increased to CDN$45,348 per year.

 
 
H.
Vacation of 5 weeks per year:  No change.

 
 
I.
Leased company vehicle with escort driver:  No change.

 
 
J.
A club membership at the El Rancho Club:  No change.

 
These compensation components are based on the currently existing terms and
conditions applicable to employees of your position in Canada and Colombia and
will be reviewed annually. GTEI retains the right to amend, change or
discontinue any policy or program as it deems necessary. The changes will apply
to you in the same manner as they apply to other employees.
 
 
6.
BOGOTÁ ACCOMMODATION:  Your accommodation allowance of CDN$9506.00 per month
remains as per previous agreement.

 
 
7.
CALGARY PROPERTY MANAGEMENT FEES:  No change.

 
 
8.
STORAGE:  GTEI will reimburse you up to CDN$500.00 per month for storage fees
incurred in Calgary.

 
 
9.
TAXATION:  No change, except KPMG LLP will prepare your Canadian and Colombian
income tax filings.

 
 
10.
HOME VISITS:  No change.

 
 
11.
BOGOTÁ SETTLEMENT ALLOWANCE:  No change.

 
 
12.
SHIPPING:  No change.

 
 
13.
LANGUAGE TRAINING:  No change.

 
 
14.
REPATRIATION:  No change.

 
Except for the amendments stated here the Expatriate Agreement remains in full
force and effect.
 
 
Sincerely,
 
 
/s/ Shane O’Leary
 
Shane O’Leary
Chief Operating Officer
 
 
I accept the above terms and conditions: /s/ Duncan
Nightingale                                                                                                           
Date October 14, 2011
 
 
 

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Schedule A
 
PRESIDENT OF GRAN TIERRA ENERGY COLOMBIA
 
Duties and Responsibilities

 
·
Create value by growing reserves and production in a safe, environmentally and
socially responsible manner.

 
·
Evaluate and capture new business opportunities through land acquisition,
farmins, partnerships, and merger & acquisition activities.

 
·
Recruit and retain key talent and develop strong expertise in the organization.

 
·
Maintain strong relationships with government authorities, industry, community,
investors, and GranTierra Energy Inc head office.

 

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