Document:

INTELLECTUAL
      PROPERTY SECURITY AGREEMENT

     

    INTELLECTUAL
      PROPERTY SECURITY AGREEMENT (this
      “Agreement”
      dated as
      of December 27, 2006, by and among Grant Life Sciences, Inc., a Nevada
      corporation (the “Company”),
      and
      the secured parties signatory hereto and their respective endorsees, transferees
      and assigns (collectively, the “Secured
      Party”).

     

    WITNESSETH
      :

     

    WHEREAS,
      pursuant to a Securities Purchase Agreement, dated the date hereof, between
      Company and the Secured Party (the “Purchase
      Agreement”),
      Company has agreed to issue to the Secured Party and the Secured Party has
      agreed to purchase from Company certain of Company’s 6% Callable Secured
      Convertible Notes, due three years from the date of issue (the “Notes”),
      which
      are convertible into shares of Company’s Common Stock, par value $.001 per share
      (the “Common
      Stock”).
      In
      connection therewith, Company shall issue the Secured Party certain Common
      Stock
      purchase warrants (the “Warrants”);
      and

     

    WHEREAS,
      in order to induce the Secured Party to purchase the Notes, Company has agreed
      to execute and deliver to the Secured Party this Agreement for the benefit
      of
      the Secured Party and to grant to it a first priority security interest in
      certain Intellectual Property (defined below) of Company to secure the prompt
      payment, performance and discharge in full of all of Company’s obligations under
      the Notes and exercise and discharge in full of Company’s obligations under the
      Warrants; and

     

    NOW,
      THEREFORE, in consideration of the agreements herein contained and for other
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto hereby agree as follows:

     

    1.  Defined
      Terms.
      Unless
      otherwise defined herein, terms which are defined in the Purchase Agreement
      and
      used herein are so used as so defined; and the following terms shall have the
      following meanings:

     

    “Software
      Intellectual Property”
shall
      mean:

     

    (a)  all
      software programs (including all source code, object code and all related
      applications and data files), whether now owned, upgraded, enhanced, licensed
      or
      leased or hereafter acquired by the Company, above;

     

    (b)  all
      computers and electronic data processing hardware and firmware associated
      therewith;

     

    (c)  all
      documentation (including flow charts, logic diagrams, manuals, guides and
      specifications) with respect to such software, hardware and firmware described
      in the preceding clauses (a) and (b); and

     

    (d)  all
      rights with respect to all of the foregoing, including, without limitation,
      any
      and all upgrades, modifications, copyrights, licenses, options, warranties,
      service contracts, program services, test rights, maintenance rights, support
      rights, improvement rights, renewal rights and indemnifications and
      substitutions, replacements, additions, or model conversions of any of the
      foregoing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Copyrights”
shall
      mean (a) all copyrights, registrations and applications for registration,
issued
      or
      filed, including any reissues, extensions or renewals thereof, by or with the
      United States Copyright Office or any similar office or agency of the United
      States, any state thereof, or any other country or political subdivision
      thereof, or otherwise, including, all rights in and to the material constituting
      the subject matter thereof, including, without limitation, any referred to
      in
Schedule
      B
      hereto,
      and (b) any rights in any material which is copyrightable or which is protected
      by common law, United States copyright laws or similar laws or any law of any
      State, including, without limitation, any thereof referred to in Schedule
      B
      hereto.

     

    “Copyright
      License”
shall
      mean any agreement, written or oral, providing for a grant by the Company of
      any
      right in any Copyright, including, without limitation, any thereof referred
      to
      in Schedule
      B
      hereto.

     

    “Intellectual
      Property”
shall
      means, collectively, the Software Intellectual Property, Copyrights, Copyright
      Licenses, Patents, Patent Licenses, Trademarks, Trademark Licenses and Trade
      Secrets.

     

    “Obligations”
means
      all of the Company’s obligations under this Agreement and the Notes, in each
      case, whether now or hereafter existing, voluntary or involuntary, direct or
      indirect, absolute or contingent, liquidated or unliquidated, whether or not
      jointly owed with others, and whether or not from time to time decreased or
      extinguished and later decreased, created or incurred, and all or any portion
      of
      such obligations or liabilities that are paid, to the extent all or any part
      of
      such payment is avoided or recovered directly or indirectly from the Secured
      Party as a preference, fraudulent transfer or otherwise as such obligations
      may
      be amended, supplemented, converted, extended or modified from time to
      time.

     

    “Patents”
shall
      mean (a) all letters patent of the United States or any other country or any
      political subdivision thereof, and all reissues and extensions thereof,
      including, without limitation, any thereof referred to in Schedule
      B
      hereto,
      and (b) all applications for letters patent of the United States and all
      divisions, continuations and continuations-in-part thereof or any other country
      or any political subdivision, including, without limitation, any thereof
      referred to in Schedule
      B
      hereto.

     

    “Patent
      License”
shall
      mean all agreements, whether written or oral, providing for the grant by the
      Company of any right to manufacture, use or sell any invention covered by a
      Patent, including, without limitation, any thereof referred to in Schedule
      B
      hereto.

     

    “Security
      Agreement”
shall
      mean the a Security Agreement, dated the date hereof between Company and the
      Secured Party.

     

    “Trademarks”
shall
      mean (a) all trademarks, trade names, corporate names, company names, business
      names, fictitious business names, trade styles, service marks, logos and other
      source or business identifiers, and the goodwill associated therewith, now
      existing or hereafter adopted or acquired, all registrations and recordings
      thereof, and all applications in connection therewith, whether in the United
      States Patent and Trademark Office or in any similar office or agency of the
      United States, any state thereof or any other country or any political
      subdivision thereof, or otherwise, including, without limitation, any thereof
      referred to in Schedule
      B
      hereto,
      and (b) all reissues, extensions or renewals thereof.

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    “Trademark
      License”
shall
      mean any agreement, written or oral, providing for the grant by the Company
      of
      any right to use any Trademark, including, without limitation, any thereof
      referred to in Schedule
      B
      hereto.

     

    “Trade
      Secrets”
shall
      mean common law and statutory trade secrets and all other confidential or
      proprietary or useful information and all know-how obtained by or used in or
      contemplated at any time for use in the business of the Company (all of the
      foregoing being collectively called a “Trade
      Secret”),
      whether or not such Trade Secret has been reduced to a writing or other tangible
      form, including all documents and things embodying, incorporating or referring
      in any way to such Trade Secret, all Trade Secret licenses, including each
      Trade
      Secret license referred to in Schedule
      B
      hereto,
      and including the right to sue for and to enjoin and to collect damages for
      the
      actual or threatened misappropriation of any Trade Secret and for the breach
      or
      enforcement of any such Trade Secret license.

     

    2.  Grant
      of Security Interest.
      In
      accordance with Section 3(m) of the Security Agreement, to secure the complete
      and timely payment, performance and discharge in full, as the case may be,
      of
      all of the Obligations, the Company hereby, unconditionally and irrevocably,
      pledges, grants and hypothecates to the Secured Party, a continuing security
      interest in, a continuing first lien upon, an unqualified right to possession
      and disposition of and a right of set-off against, in each case to the fullest
      extent permitted by law, all of the Company’s right, title and interest of
      whatsoever kind and nature in and to the Intellectual Property (the
“Security
      Interest”).

     

    3.  Representations
      and Warranties.
      The
      Company hereby represents and warrants, and covenants and agrees with, the
      Secured Party as follows:

     

    (a)  The
      Company has the requisite corporate power and authority to enter into this
      Agreement and otherwise to carry out its obligations thereunder. The execution,
      delivery and performance by the Company of this Agreement and the filings
      contemplated therein have been duly authorized by all necessary action on the
      part of the Company and no further action is required by the Company. This
      Agreement constitutes a legal, valid and binding obligation of the Company
      enforceable in accordance with its terms, except as enforceability may be
      limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
      affecting the enforcement of creditor’s rights generally.

     

    (b)  The
      Company represents and warrants that it has no place of business or offices
      where its respective books of account and records are kept (other than
      temporarily at the offices of its attorneys or accountants) or places where
      the
      Intellectual Property is stored or located, except as set forth on Schedule
      A
      attached
      hereto;

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

     

    (c)  The
      Company is the sole owner of the Intellectual Property (except for non-exclusive
      licenses granted by the Company in the ordinary course of business), free and
      clear of any liens, security interests, encumbrances, rights or claims, and
      is
      fully authorized to grant the Security Interest in and to pledge the
      Intellectual Property. There is not on file in any governmental or regulatory
      authority, agency or recording office an effective financing statement, security
      agreement, license or transfer or any notice of any of the foregoing (other
      than
      those that have been filed in favor of the Secured Party pursuant to this
      Agreement) covering or affecting any of the Intellectual Property. So long
      as
      this Agreement shall be in effect, the Company shall not execute and shall
      not
      knowingly permit to be on file in any such office or agency any such financing
      statement or other document or instrument (except to the extent filed or
      recorded in favor of the Secured Party pursuant to the terms of this Agreement),
      except for a financing statement covering assets acquired by the Company after
      the date hereof, provided that the value of the Intellectual Property covered
      by
      this Agreement along with the Collateral (as defined in the Security Agreement)
      is equal to at least 150% of the Obligations.

     

    (d)  The
      Company shall at all times maintain its books of account and records relating
      to
      the Intellectual Property at its principal place of business and its
      Intellectual Property at the locations set forth on Schedule
      A
      attached
      hereto and may not relocate such books of account and records unless it delivers
      to the Secured Party at least 30 days prior to such relocation (i) written
      notice of such relocation and the new location thereof (which must be within
      the
      United States) and (ii) evidence that the necessary documents have been
      filed and recorded and other steps have been taken to perfect the Security
      Interest to create in favor of the Secured Party valid, perfected and continuing
      first priority liens in the Intellectual Property to the extent they can be
      perfected through such filings.

     

    (e)  This
      Agreement creates in favor of the Secured Party a valid security interest in
      the
      Intellectual Property securing the payment and performance of the Obligations
      and, upon making the filings required hereunder, a perfected first priority
      security interest in such Intellectual Property to the extent that it can be
      perfected through such filings.

     

    (f)  
      Upon
      request of the Secured Party, the Company shall execute and deliver any and
      all
      agreements, instruments, documents, and papers as the Secured Party may request
      to evidence the Secured Party’s security interest in the Intellectual Property
      and the goodwill and general intangibles of the Company relating thereto or
      represented thereby, and the Company hereby appoints the Secured Party its
      attorney-in-fact to execute and file all such writings for the foregoing
      purposes, all acts of such attorney being hereby ratified and confirmed; such
      power being coupled with an interest is irrevocable until the Obligations have
      been fully satisfied and are paid in full.

     

    (g)  The
      execution, delivery and performance of this Agreement does not conflict with
      or
      cause a breach or default, or an event that with or without the passage of
      time
      or notice, shall constitute a breach or default, under any agreement to which
      the Company is a party or by which the Company is bound. No consent (including,
      without limitation, from stock holders or creditors of the Company) is required
      for the Company to enter into and perform its obligations
      hereunder.

     

    
      
        
        

      

      
        C-4

        
          

        

      

      
        
        

      

    

     

    (h)  The
      Company shall at all times maintain the liens and Security Interest provided
      for
      hereunder as valid and perfected first priority liens and security interests
      in
      the Intellectual Property to the extent they can be perfected by filing in
      favor
      of the Secured Party until this Agreement and the Security Interest hereunder
      shall terminate pursuant to Section 11. The Company hereby agrees to defend
      the
      same against any and all persons. The Company shall safeguard and protect all
      Intellectual Property for the account of the Secured Party. Without limiting
      the
      generality of the foregoing, the Company shall pay all fees, taxes and other
      amounts necessary to maintain the Intellectual Property and the Security
      Interest hereunder, and the Company shall obtain and furnish to the Secured
      Party from time to time, upon demand, such releases and/or subordinations of
      claims and liens which may be required to maintain the priority of the Security
      Interest hereunder. 

     

    (i)  The
      Company will not transfer, pledge, hypothecate, encumber, license (except for
      non-exclusive licenses granted by the Company in the ordinary course of
      business), sell or otherwise dispose of any of the Intellectual Property without
      the prior written consent of the Secured Party.

     

    (j)  The
      Company shall, within ten (10) days of obtaining knowledge thereof, advise
      the
      Secured Party promptly, in sufficient detail, of any substantial change in
      the
      Intellectual Property, and of the occurrence of any event which would have
      a
      material adverse effect on the value of the Intellectual Property or on the
      Secured Party’s security interest therein.

     

    (k)  The
      Company shall permit the Secured Party and its representatives and agents to
      inspect the Intellectual Property at any time, and to make copies of records
      pertaining to the Intellectual Property as may be requested by the Secured
      Party
      from time to time.

     

    (l)  The
      Company will take all steps reasonably necessary to diligently pursue and seek
      to preserve, enforce and collect any rights, claims, causes of action and
      accounts receivable in respect of the Intellectual Property.

     

    (m)  The
      Company shall promptly notify the Secured Party in sufficient detail upon
      becoming aware of any attachment, garnishment, execution or other legal process
      levied against any Intellectual Property and of any other information received
      by the Company that may materially affect the value of the Intellectual
      Property, the Security Interest or the rights and remedies of the Secured Party
      hereunder.

     

    (n)  All
      information heretofore, herein or hereafter supplied to the Secured Party by
      or
      on behalf of the Company with respect to the Intellectual Property is accurate
      and complete in all material respects as of the date furnished.

     

    (o)  Schedule
      A
      attached
      hereto contains a list of all of the subsidiaries of Company.

     

    (p)  Schedule
      B
      attached
      hereto includes all Licenses, and all Patents and Patent Licenses, if any,
      owned
      by the Company in its own name as of the date hereof. Schedule
      B
      hereto
      includes all Trademarks and Trademark Licenses, if any, owned by the Company
      in
      its own name as of the date hereof. Schedule
      B
      hereto
      includes all Copyrights and Copyright Licenses, if any, owned by the Company
      in
      its own name as of the date hereof. Schedule
      B
      hereto
      includes all Trade Secrets and Trade Secret Licenses, if any, owned by the
      Company as of the date hereof. To the best of the Company’s knowledge, each
      License, Patent, Trademark, Copyright and Trade Secret is valid, subsisting,
      unexpired, enforceable and has not been abandoned. Except as set forth in
Schedule
      B,
      none of
      such Licenses, Patents, Trademarks, Copyrights and Trade Secrets is the subject
      of any licensing or franchise agreement. To the best of the Company’s knowledge,
      no holding, decision or judgment has been rendered by any Governmental Body
      which would limit, cancel or question the validity of any License, Patent,
      Trademark, Copyright and Trade Secrets . No action or proceeding is pending
      (i)
      seeking to limit, cancel or question the validity of any License, Patent,
      Trademark, Copyright or Trade Secret, or (ii) which, if adversely determined,
      would have a material adverse effect on the value of any License, Patent,
      Trademark, Copyright or Trade Secret. The Company has used and will continue
      to
      use for the duration of this Agreement, proper statutory notice in connection
      with its use of the Patents, Trademarks and Copyrights and consistent standards
      of quality in products leased or sold under the Patents, Trademarks and
      Copyrights.

     

    
      
        
        

      

      
        C-5

        
          

        

      

      
        
        

      

    

     

    (q)  With
      respect to any Intellectual Property:

     

    
      	(i)  	
              such
                Intellectual Property is subsisting and has not been adjudged invalid
                or
                unenforceable, in whole or in part;

            

    

     

    
      	(ii)  	
              such
                Intellectual Property is valid and
                enforceable;

            

    

     

    
      	(iii)  	
              the
                Company has made all necessary filings and recordations to protect
                its
                interest in such Intellectual Property, including, without limitation,
                recordations of all of its interests in the Patents, Patent Licenses,
                Trademarks and Trademark Licenses in the United States Patent and
                Trademark Office and in corresponding offices throughout the world
                and its
                claims to the Copyrights and Copyright Licenses in the United States
                Copyright Office and in corresponding offices throughout the
                world;

            

    

     

    
      	(iv)  	
              other
                than as set forth in Schedule
                B,
                the Company is the exclusive owner of the entire and unencumbered
                right,
                title and interest in and to such Intellectual Property and no claim
                has
                been made that the use of such Intellectual Property infringes on
                the
                asserted rights of any third party;
                and

            

    

     

    
      	(v)  	
              the
                Company has performed and will continue to perform all acts and has
                paid
                all required fees and taxes to maintain each and every item of
                Intellectual Property in full force and effect throughout the world,
                as
                applicable.

            

    

     

     

    
      
        
        

      

      
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    (r)  Except
      with respect to any Trademark or Copyright that the Company shall reasonably
      determine is of negligible economic value to the Company, the Company
      shall:

     

    (i)  maintain
      each Trademark and Copyright in full force free from any claim of abandonment
      for non-use, maintain as in the past the quality of products and services
      offered under such Trademark or Copyright; employ such Trademark or Copyright
      with the appropriate notice of registration; not adopt or use any mark which
      is
      confusingly similar or a colorable imitation of such Trademark or Copyright
      unless the Secured Party shall obtain a perfected security interest in such
      mark
      pursuant to this Agreement; and not (and not permit any licensee or sublicensee
      thereof to) do any act or knowingly omit to do any act whereby any Trademark
      or
      Copyright may become invalidated;

     

    (ii)  not,
      except with respect to any Patent that it shall reasonably determine is of
      negligible economic value to it, do any act, or omit to do any act, whereby
      any
      Patent may become abandoned or dedicated; and

     

    (iii)  notify
      the Secured Party immediately if it knows, or has reason to know, that any
      application or registration relating to any Patent, Trademark or Copyright
      may
      become abandoned or dedicated, or of any adverse determination or development
      (including, without limitation, the institution of, or any such determination
      or
      development in, any proceeding in the United States Patent and Trademark Office,
      United States Copyright Office or any court or tribunal in any country)
      regarding its ownership of any Patent, Trademark or Copyright or its right
      to
      register the same or to keep and maintain the same.

     

    (s)  Whenever
      the Company, either by itself or through any agent, employee, licensee or
      designee, shall file an application for the registration of any Patent,
      Trademark or Copyright with the United States Patent and Trademark Office,
      United States Copyright Office or any similar office or agency in any other
      country or any political subdivision thereof or acquire rights to any new
      Patent, Trademark or Copyright whether or not registered, report such filing
      to
      the Secured Party within five business days after the last day of the fiscal
      quarter in which such filing occurs.

     

    (t)  The
      Company shall take all reasonable and necessary steps, including, without
      limitation, in any proceeding before the United States Patent and Trademark
      Office, United States Copyright Office or any similar office or agency in any
      other country or any political subdivision thereof, to maintain and pursue
      each
      application (and to obtain the relevant registration) and to maintain each
      registration of the Patents, Trademarks and Copyrights, including, without
      limitation, filing of applications for renewal, affidavits of use and affidavits
      of incontestability.

     

    (u)  In
      the
      event that any Patent, Trademark or Copyright included in the Intellectual
      Property is infringed, misappropriated or diluted by a third party, promptly
      notify the Secured Party after it learns thereof and shall, unless it shall
      reasonably determine that such Patent, Trademark or Copyright is of negligible
      economic value to it, which determination it shall promptly report to the
      Secured Party, promptly sue for infringement, misappropriation or dilution,
      to
      seek injunctive relief where appropriate and to recover any and all damages
      for
      such infringement, misappropriation or dilution, or take such other actions
      as
      it shall reasonably deem appropriate under the circumstances to protect such
      Patent, Trademark or Copyright. If the Company lacks the financial resources
      to
      comply with this Section 3(t), the Company shall so notify the Secured Party
      and
      shall cooperate fully with any enforcement action undertaken by the Secured
      Party on behalf of the Company.

     

    
      
        
        

      

      
        C-7

        
          

        

      

      
        
        

      

    

     

    4.  Defaults.
      The
      following events shall be “Events
      of Default”:

     

    (a)  The
      occurrence of an Event of Default (as defined in the Notes) under the
      Notes;

     

    (b)  Any
      representation or warranty of the Company in this Agreement or in the Security
      Agreement shall prove to have been incorrect in any material respect when made;
      

     

    (c)  The
      failure by the Company to observe or perform any of its obligations hereunder
      or
      in the Security Agreement for ten (10) days after receipt by the Company of
      notice of such failure from the Secured Party; and

     

    (d)  Any
      breach of, or default under, the Warrants.

     

    5.  Duty
      To Hold In Trust.
      Upon
      the occurrence of any Event of Default and at any time thereafter, the Company
      shall, upon receipt by it of any revenue, income or other sums subject to the
      Security Interest, whether payable pursuant to the Notes or otherwise, or of
      any
      check, draft, note, trade acceptance or other instrument evidencing an
      obligation to pay any such sum, hold the same in trust for the Secured Party
      and
      shall forthwith endorse and transfer any such sums or instruments, or both,
      to
      the Secured Party for application to the satisfaction of the
      Obligations.

     

    6.  Rights
      and Remedies Upon Default.
      Upon
      occurrence of any Event of Default and at any time thereafter, the Secured
      Party
      shall have the right to exercise all of the remedies conferred hereunder and
      under the Notes, and the Secured Party shall have all the rights and remedies
      of
      a secured party under the UCC and/or any other applicable law (including the
      Uniform Commercial Code of any jurisdiction in which any Intellectual Property
      is then located). Without limitation, the Secured Party shall have the following
      rights and powers:

     

    (a)  The
      Secured Party shall have the right to take possession of the Intellectual
      Property and, for that purpose, enter, with the aid and assistance of any
      person, any premises where the Intellectual Property, or any part thereof,
      is or
      may be placed and remove the same, and the Company shall assemble the
      Intellectual Property and make it available to the Secured Party at places
      which
      the Secured Party shall reasonably select, whether at the Company’s premises or
      elsewhere, and make available to the Secured Party, without rent, all of the
      Company’s respective premises and facilities for the purpose of the Secured
      Party taking possession of, removing or putting the Intellectual Property in
      saleable or disposable form.

     

    
      
        
        

      

      
        C-8

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Secured Party shall have the right to operate the business of the Company using
      the Intellectual Property and shall have the right to assign, sell, lease or
      otherwise dispose of and deliver all or any part of the Intellectual Property,
      at public or private sale or otherwise, either with or without special
      conditions or stipulations, for cash or on credit or for future delivery, in
      such parcel or parcels and at such time or times and at such place or places,
      and upon such terms and conditions as the Secured Party may deem commercially
      reasonable, all without (except as shall be required by applicable statute
      and
      cannot be waived) advertisement or demand upon or notice to the Company or
      right
      of redemption of the Company, which are hereby expressly waived. Upon each
      such
      sale, lease, assignment or other transfer of Intellectual Property, the Secured
      Party may, unless prohibited by applicable law which cannot be waived, purchase
      all or any part of the Intellectual Property being sold, free from and
      discharged of all trusts, claims, right of redemption and equities of the
      Company, which are hereby waived and released.

     

    7.  Applications
      of Proceeds.
      The
      proceeds of any such sale, lease or other disposition of the Intellectual
      Property hereunder shall be applied first, to the expenses of retaking, holding,
      storing, processing and preparing for sale, selling, and the like (including,
      without limitation, any taxes, fees and other costs incurred in connection
      therewith) of the Intellectual Property, to the reasonable attorneys’ fees and
      expenses incurred by the Secured Party in enforcing its rights hereunder and
      in
      connection with collecting, storing and disposing of the Intellectual Property,
      and then to satisfaction of the Obligations, and to the payment of any other
      amounts required by applicable law, after which the Secured Party shall pay
      to
      the Company any surplus proceeds. If, upon the sale, license or other
      disposition of the Intellectual Property, the proceeds thereof are insufficient
      to pay all amounts to which the Secured Party is legally entitled, the Company
      will be liable for the deficiency, together with interest thereon, at the rate
      of 15% per annum (the “Default
      Rate”),
      and
      the reasonable fees of any attorneys employed by the Secured Party to collect
      such deficiency. To the extent permitted by applicable law, the Company waives
      all claims, damages and demands against the Secured Party arising out of the
      repossession, removal, retention or sale of the Intellectual Property, unless
      due to the gross negligence or willful misconduct of the Secured
      Party.

     

    8.  Costs
      and Expenses. The
      Company agrees to pay all out-of-pocket fees, costs and expenses incurred in
      connection with any filing required hereunder, including without limitation,
      any
      financing statements, continuation statements, partial releases and/or
      termination statements related thereto or any expenses of any searches
      reasonably required by the Secured Party. The Company shall also pay all other
      claims and charges which in the reasonable opinion of the Secured Party might
      prejudice, imperil or otherwise affect the Intellectual Property or the Security
      Interest therein. The Company will also, upon demand, pay to the Secured Party
      the amount of any and all reasonable expenses, including the reasonable fees
      and
      expenses of its counsel and of any experts and agents, which the Secured Party
      may incur in connection with (i) the enforcement of this Agreement, (ii) the
      custody or preservation of, or the sale of, collection from, or other
      realization upon, any of the Intellectual Property, or (iii) the exercise or
      enforcement of any of the rights of the Secured Party under the Notes. Until
      so
      paid, any fees payable hereunder shall be added to the principal amount of
      the
      Notes and shall bear interest at the Default Rate.

     

    
      
        
        

      

      
        C-9

        
          

        

      

      
        
        

      

    

     

    9.  Responsibility
      for Intellectual Property.
      The
      Company assumes all liabilities and responsibility in connection with all
      Intellectual Property, and the obligations of the Company hereunder or under
      the
      Notes and the Warrants shall in no way be affected or diminished by reason
      of
      the loss, destruction, damage or theft of any of the Intellectual Property
      or
      its unavailability for any reason. 

     

    10.  Security
      Interest Absolute.
      All
      rights of the Secured Party and all Obligations of the Company hereunder, shall
      be absolute and unconditional, irrespective of: (a) any lack of validity or
      enforceability of this Agreement, the Notes, the Warrants or any agreement
      entered into in connection with the foregoing, or any portion hereof or thereof;
      (b) any change in the time, manner or place of payment or performance of, or
      in
      any other term of, all or any of the Obligations, or any other amendment or
      waiver of or any consent to any departure from the Notes, the Warrants or any
      other agreement entered into in connection with the foregoing; (c) any exchange,
      release or nonperfection of any of the Intellectual Property, or any release
      or
      amendment or waiver of or consent to departure from any other Intellectual
      Property for, or any guaranty, or any other security, for all or any of the
      Obligations; (d) any action by the Secured Party to obtain, adjust, settle
      and
      cancel in its sole discretion any insurance claims or matters made or arising
      in
      connection with the Intellectual Property; or (e) any other circumstance which
      might otherwise constitute any legal or equitable defense available to the
      Company, or a discharge of all or any part of the Security Interest granted
      hereby. Until the Obligations shall have been paid and performed in full, the
      rights of the Secured Party shall continue even if the Obligations are barred
      for any reason, including, without limitation, the running of the statute of
      limitations or bankruptcy. The Company expressly waives presentment, protest,
      notice of protest, demand, notice of nonpayment and demand for performance.
      In
      the event that at any time any transfer of any Intellectual Property or any
      payment received by the Secured Party hereunder shall be deemed by final order
      of a court of competent jurisdiction to have been a voidable preference or
      fraudulent conveyance under the bankruptcy or insolvency laws of the United
      States, or shall be deemed to be otherwise due to any party other than the
      Secured Party, then, in any such event, the Company’s obligations hereunder
      shall survive cancellation of this Agreement, and shall not be discharged or
      satisfied by any prior payment thereof and/or cancellation of this Agreement,
      but shall remain a valid and binding obligation enforceable in accordance with
      the terms and provisions hereof. The Company waives all right to require the
      Secured Party to proceed against any other person or to apply any Intellectual
      Property which the Secured Party may hold at any time, or to marshal assets,
      or
      to pursue any other remedy. The Company waives any defense arising by reason
      of
      the application of the statute of limitations to any obligation secured
      hereby.

     

    11.  Term
      of Agreement.
      This
      Agreement and the Security Interest shall terminate on the date on which all
      payments under the Notes have been made in full and all other Obligations have
      been paid or discharged. Upon such termination, the Secured Party, at the
      request and at the expense of the Company, will join in executing any
      termination statement with respect to any financing statement executed and
      filed
      pursuant to this Agreement. 

     

    
      
        
        

      

      
        C-10

        
          

        

      

      
        
        

      

    

     

    12.  Power
      of Attorney; Further Assurances.

     

    (a)  The
      Company authorizes the Secured Party, and does hereby make, constitute and
      appoint it, and its respective officers, agents, successors or assigns with
      full
      power of substitution, as the Company’s true and lawful attorney-in-fact, with
      power, in its own name or in the name of the Company, to, after the occurrence
      and during the continuance of an Event of Default, (i) endorse any notes,
      checks, drafts, money orders, or other instruments of payment (including
      payments payable under or in respect of any policy of insurance) in respect
      of
      the Intellectual Property that may come into possession of the Secured Party;
      (ii) to sign and endorse any UCC financing statement or any invoice, freight
      or
      express bill, bill of lading, storage or warehouse receipts, drafts against
      debtors, assignments, verifications and notices in connection with accounts,
      and
      other documents relating to the Intellectual Property; (iii) to pay or discharge
      taxes, liens, security interests or other encumbrances at any time levied or
      placed on or threatened against the Intellectual Property; (iv) to demand,
      collect, receipt for, compromise, settle and sue for monies due in respect
      of
      the Intellectual Property; and (v) generally, to do, at the option of the
      Secured Party, and at the Company’s expense, at any time, or from time to time,
      all acts and things which the Secured Party deems necessary to protect, preserve
      and realize upon the Intellectual Property and the Security Interest granted
      therein in order to effect the intent of this Agreement, the Notes and the
      Warrants, all as fully and effectually as the Company might or could do; and
      the
      Company hereby ratifies all that said attorney shall lawfully do or cause to
      be
      done by virtue hereof. This power of attorney is coupled with an interest and
      shall be irrevocable for the term of this Agreement and thereafter as long
      as
      any of the Obligations shall be outstanding.

     

    (b)  On
      a
      continuing basis, the Company will make, execute, acknowledge, deliver, file
      and
      record, as the case may be, in the proper filing and recording places in any
      jurisdiction, including, without limitation, the jurisdictions indicated on
      Schedule
      C,
      attached hereto, all such instruments, and take all such action as may
      reasonably be deemed necessary or advisable, or as reasonably requested by
      the
      Secured Party, to perfect the Security Interest granted hereunder and otherwise
      to carry out the intent and purposes of this Agreement, or for assuring and
      confirming to the Secured Party the grant or perfection of a security interest
      in all the Intellectual Property.

     

    (c)  The
      Company hereby irrevocably appoints the Secured Party as the Company’s
      attorney-in-fact, with full authority in the place and stead of the Company
      and
      in the name of the Company, from time to time in the Secured Party’s discretion,
      to take any action and to execute any instrument which the Secured Party may
      deem necessary or advisable to accomplish the purposes of this Agreement,
      including the filing, in its sole discretion, of one or more financing or
      continuation statements and amendments thereto, relative to any of the
      Intellectual Property without the signature of the Company where permitted
      by
      law.

     

    13.  Notices.
      All
      notices, requests, demands and other communications hereunder shall be in
      writing, with copies to all the other parties hereto, and shall be deemed to
      have been duly given when (i) if delivered by hand, upon receipt, (ii) if sent
      by facsimile, upon receipt of proof of sending thereof, (iii) if sent by
      nationally recognized overnight delivery service (receipt requested), the next
      business day or (iv) if mailed by first-class registered or certified mail,
      return receipt requested, postage prepaid, four days after posting in the U.S.
      mails, in each case if delivered to the following addresses:

     

    
      
        
        

      

      
        C-11

        
          

        

      

      
        
        

      

    

     

    

      
        	
                If
                  to the Company: 

              	
                Grant
                  Life Sciences, Inc.

              
	 	
                3550
                  Wilshire Blvd.

              
	 	
                Suite
                  1700

              
	 	
                Los
                  Angeles, CA 90010

              
	 	
                Attention:
                  President

              
	 	
                Telephone:
                  (213) 637-5692

              
	 	
                Facsimile:
                  ___________

              

      

    

     

     

    
      
        
        

      

      
        C-12

        
          

        

      

      
        
        

      

    

     

    

      
        	
                With
                  copies to:

              	
                Sichenzia
                  Ross Friedman & Ference LLP

              
	 	
                1065
                  Avenue of the Americas

              
	 	
                New
                  York, NY 10018

              
	 	
                Attention:
                  Gregory Sichenzia, Esq.

              
	 	
                Telephone:
                  (212) 930-9700

              
	 	
                Facsimile:
                  (212) 930-9725

              
	 	 
	
                If
                  to the Secured Party:

              	
                AJW
                  Partners, LLC

              
	 	
                AJW
                  Offshore, Ltd.

              
	 	
                AJW
                  Qualified Partners, LLC

              
	 	
                New
                  Millennium Capital Partners II, LLC

              
	 	
                1044
                  Northern Boulevard

              
	 	
                Suite
                  302

              
	 	
                Roslyn,
                  New York 11576

              
	 	
                Attention:
                  Corey Ribotsky

              
	 	
                Facsimile:
                  516-739-7115

              
	 	 
	
                With
                  copies to:

              	
                Ballard
                  Spahr Andrews & Ingersoll, LLP

              
	 	
                1735
                  Market Street, 51st
                  Floor

              
	 	
                Philadelphia,
                  Pennsylvania 19103

              
	 	
                Attention:
                  Gerald J. Guarcini, Esquire

              
	 	
                Facsimile:
                  215-864-8999

              

      

    

     

    14.  Other
      Security.
      To the
      extent that the Obligations are now or hereafter secured by property other
      than
      the Intellectual Property or by the guarantee, endorsement or property of any
      other person, firm, corporation or other entity, then the Secured Party shall
      have the right, in its sole discretion, to pursue, relinquish, subordinate,
      modify or take any other action with respect thereto, without in any way
      modifying or affecting any of the Secured Party’s rights and remedies
      hereunder.

     

    15.  Miscellaneous.

     

    (a)  No
      course
      of dealing between the Company and the Secured Party, nor any failure to
      exercise, nor any delay in exercising, on the part of the Secured Party, any
      right, power or privilege hereunder or under the Notes shall operate as a waiver
      thereof; nor shall any single or partial exercise of any right, power or
      privilege hereunder or thereunder preclude any other or further exercise thereof
      or the exercise of any other right, power or privilege.

     

    (b)  All
      of
      the rights and remedies of the Secured Party with respect to the Intellectual
      Property, whether established hereby or by the Notes or by any other agreements,
      instruments or documents or by law shall be cumulative and may be exercised
      singly or concurrently.

     

    
      
        
        

      

      
        C-13

        
          

        

      

      
        
        

      

    

     

    (c)  This
      Agreement and the Security Agreement constitute the entire agreement of the
      parties with respect to the subject matter hereof and is intended to supersede
      all prior negotiations, understandings and agreements with respect thereto.
      Except as specifically set forth in this Agreement, no provision of this
      Agreement may be modified or amended except by a written agreement specifically
      referring to this Agreement and signed by the parties hereto.

     

    (d)  In
      the
      event that any provision of this Agreement is held to be invalid, prohibited
      or
      unenforceable in any jurisdiction for any reason, unless such provision is
      narrowed by judicial construction, this Agreement shall, as to such
      jurisdiction, be construed as if such invalid, prohibited or unenforceable
      provision had been more narrowly drawn so as not to be invalid, prohibited
      or
      unenforceable. If, notwithstanding the foregoing, any provision of this
      Agreement is held to be invalid, prohibited or unenforceable in any
      jurisdiction, such provision, as to such jurisdiction, shall be ineffective
      to
      the extent of such invalidity, prohibition or unenforceability without
      invalidating the remaining portion of such provision or the other provisions
      of
      this Agreement and without affecting the validity or enforceability of such
      provision or the other provisions of this Agreement in any other
      jurisdiction.

     

    (e)  No
      waiver
      of any breach or default or any right under this Agreement shall be considered
      valid unless in writing and signed by the party giving such waiver, and no
      such
      waiver shall be deemed a waiver of any subsequent breach or default or right,
      whether of the same or similar nature or otherwise.

     

    (f)  This
      Agreement shall be binding upon and inure to the benefit of each party hereto
      and its successors and assigns.

     

    (g)  Each
      party shall take such further action and execute and deliver such further
      documents as may be necessary or appropriate in order to carry out the
      provisions and purposes of this Agreement.

     

    (h)  This
      Agreement shall be construed in accordance with the laws of the State of New
      York, except to the extent the validity, perfection or enforcement of a security
      interest hereunder in respect of any particular Intellectual Property which
      are
      governed by a jurisdiction other than the State of New York in which case such
      law shall govern. Each of the parties hereto irrevocably submit to the exclusive
      jurisdiction of any New York State or United States Federal court sitting in
      Manhattan county over any action or proceeding arising out of or relating to
      this Agreement, and the parties hereto hereby irrevocably agree that all claims
      in respect of such action or proceeding may be heard and determined in such
      New
      York State or Federal court. The parties hereto agree that a final judgment
      in
      any such action or proceeding shall be conclusive and may be enforced in other
      jurisdictions by suit on the judgment or in any other manner provided by law.
      The parties hereto further waive any objection to venue in the State of New
      York
      and any objection to an action or proceeding in the State of New York on the
      basis of forum non conveniens.

     

    (i)  EACH
      PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF
      ANY
      CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT. THE SCOPE
      OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY DISPUTES THAT MAY
      BE
      FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER OF THIS AGREEMENT,
      INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS
      AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES
      THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO A
      BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THIS WAIVER IN
      ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY ON THIS
      WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
      REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
      SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL
      FOLLOWING SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE, MEANING THAT,
      NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED EITHER
      ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
      RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE EVENT OF
      A
      LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY
      THE
      COURT. 

     

    
      
        
        

      

      
        C-14

        
          

        

      

      
        
        

      

    

     

    (j)  This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

     

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        C-15

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed on the day and year first above written.

    
      	 	 	 
	 	
              GRANT
                LIFE SCIENCES, INC.

            
	 
 	 
 	 
 
	
            	By:  	/s/ Hun-Chi Lin
	 	
              
Chief
              Executive Officer

    

     

    
      	 	 	 
	 	
              AJW
                PARTNERS, LLC

              By:
                SMS Group, LLC

            
	 
 	 
 	 
 
	
            	By:  	/s/ Corey S. Ribotsky
	 	
              
Corey
              S. Ribotsky
	 	Manager

    

     

    
      	 	 	 
	 	
              AJW
                OFFSHORE, LTD.

              By:
                First Street Manager II, LLC

            
	 
 	 
 	 
 
	
            	By:  	/s/ Corey S. Ribotsky
	 	
              
Corey
              S. Ribotsky
	 	Manager

    

     

    
      	 	 	 
	 	
              AJW
                QUALIFIED PARTNERS, LLC

              By:
                AJW Manager, LLC

            
	 
 	 
 	 
 
	
            	By:  	/s/ Corey S. Ribotsky 
	 	
              
Corey
              S. Ribotsky
	 	Manager

    

     

    
      	 	 	 
	 	
              NEW
                MILLENNIUM CAPITAL 

              PARTNERS
                II, LLC

              By:
                First Street Manager II, LLC

            
	 
 	 
 	 
 
	
            	By:  	/s/ Corey S. Ribotsky
	 	
              
Corey
              S. Ribotsky
	 	
              Manager

            

    

     

    

    
      
        
        

      

      
        C-16EXHIBIT
      10.36

    

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    BETWEEN:

    

    GRAN
      TIERRA ENERGY INC.,
      a
      Company governed by the laws of the Province of Alberta

     

    (the
      “Company”)

     

    -
      and
      -

     

    Martin
      Eden,
      an
      individual ordinarily resident in the City of Calgary in the Province of
      Alberta

     

    (the
      “Executive”)

     

    (collectively
      referred to as the “Parties”)

     

    RECITALS:

     

    
      	
              A.

            	
              The
                Executive has specialized knowledge and valuable skills and experience
                which are critical to the management of the business and to the success
                of
                the business.

            

    

     

    
      	
              B.

            	
              The
                Company wishes to secure the services of the Executive and to ensure
                that
                the Executive remains Chief Financial Officer of the
                business.

            

    

     

    THEREFORE,
      the
      Parties agree as follows:

     

    ARTICLE
      1

    DUTIES
      AND RESPONSIBILITIES

     

    1.1 Position

     

    The
      Company confirms the appointment of the Executive to the position of Chief
      Financial Officer. The Executive will undertake those duties and
      responsibilities set out in Schedule “A” to this Agreement as well as those
      duties reasonably assigned to the Executive by the Board (the “Board”).
      The
      Executive will report to the President and Chief Executive Officer. The parties
      agree that the relationship between the Company and the Executive created by
      this Agreement is that of employer and employee.

     

    1.2 Other
      Engagements

     

    The
      Executive shall not engage in any other business, profession or occupation
      which
      would conflict with the performance of his duties and responsibilities under
      this Agreement, either directly or indirectly, including accepting appointments
      to the boards of other companies without the prior written consent of the
      Board.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.3 Reassignment

     

    The
      Company shall not reassign the Executive to another position within the Company
      itself, or to a position within a subsidiary, affiliated or related corporate
      entity (“Member
      Company”
or
      “Member
      Companies”)
      or
      alter the duties, responsibilities, title, or reporting lines of the Executive
      or change the location of the Executive’s employment unless the Executive agrees
      to such reassignment or alteration.

     

    1.4 Travel

     

    The
      Executive shall be employed at the Company’s location in Calgary, Alberta. The
      Executive shall be available for such business related travel as may be required
      for the purposes of carrying out the Executive’s duties and responsibilities.
      The Executive shall be entitled to business class tickets for travel that
      exceeds six hours. The Executive will be entitled to choose suitable
      accommodations when travelling on Company business.

     

    ARTICLE
      2

    TERM
      OF EMPLOYMENT

     

    This
      Agreement will commence as of the date hereof and will continue for an initial
      term of three years (the “Term”)
      subject to Article 9. The Term may be extended upon mutual written agreement
      of
      the parties.

     

    ARTICLE
      3

    BASE
      SALARY

     

    The
      Executive will be paid an annual salary in the amount of $225,000, subject
      to
      applicable statutory deductions (the “Base
      Salary”).
      The
      Executive’s Base Salary will be payable in accordance with Company practices and
      procedures as they may exist from time to time. Base Salary will be reviewed
      and
      may be increased on an annual basis by the Board, with input from the
      Executive.

     

    ARTICLE
      4

    BONUS

     

    4.1 Bonus
      Eligibility

     

    The
      Executive shall be eligible to receive an annual bonus payment in addition
      to
      Base Salary and other compensation for each year of the Executive’s employment
      after 2006 (the “Bonus”)
      as
      determined by the Board from time to time.

     

    4.2 Bonus
      Payment

     

    The
      Bonus
      shall be payable within sixty (60) days of the end of the fiscal year, and
      will
      be based upon the Executive’s performance during the preceding
      year.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    ARTICLE
      5

    BENEFITS

     

    The
      Executive shall be entitled to participate in and to receive all rights and
      benefits under any life insurance, disability, medical, dental, health and
      accident plans maintained by the Company for its employees and for its executive
      officers specifically. The Company will continue to pay the Executive’s Base
      Salary in the event the Executive becomes disabled until such time as the
      Executive begins to receive long-term disability insurance
      benefits.

     

    ARTICLE
      6

    VACATION

     

    The
      Executive will be entitled to five weeks vacation per year. Payment of all
      vacation pay will be at Base Salary. The Executive will arrange vacation time
      to
      suit the essential business needs of the Company. Unused vacation entitlement
      will be carried over into the following calendar year to a maximum entitlement
      of eight weeks in any one year. On leaving the employment of the Company for
      whatever reason, the Company will compensate the Executive for any accrued
      but
      unused vacation entitlement based upon the Executive’s then current Base
      Salary.

     

    ARTICLE
      7

    STOCK
      OPTIONS

     

    7.1 Stock
      Options

     

    The
      Company will provide the Executive with the right to participate in stock option
      plans and/or incentive award plans approved by the board of directors of the
      Company.

     

    ARTICLE
      8

    PERQUISITES
      AND EXPENSES

     

    The
      Company recognizes that the Executive will incur expenses in the performance
      of
      the Executive’s duties. The Company shall reimburse the Executive for any
      reasonable out of pocket expenses incurred in the course of
      employment.

     

    ARTICLE
      9

     

    TERMINATION
      OF EMPLOYMENT

     

    9.1 Termination
      Without Notice

     

    This
      Agreement and the Executive’s employment with the Company may be terminated,
      without the Company being obligated to provide the Executive with advance notice
      of termination or pay in lieu of such notice, whether under contract, statute,
      common law or otherwise, in the following circumstances:

     

    
      	 	
              (a)

            	
              Voluntary
                Resignation

            

    

     

    In
      the
      event the Executive voluntarily resigns, except where the Executive resigns
      for
      Good Reason as provided for in this Agreement, the Executive will give a minimum
      of ninety (90) days’ advance written notice to the Company. The Executive will
      not be entitled to receive any further compensation or benefits whatsoever
      other
      than those which have accrued up to the Executive’s last day of active service
      with the Company. The Company may, at its discretion, waive in whole or in
      part
      such notice with payment in lieu to the Executive;

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	 	
              (b)

            	
              Cause

            

    

     

    In
      the
      event the Executive’s employment is terminated for Cause, the Executive shall
      not be entitled to receive any further compensation or benefits whatsoever
      other
      than those which have accrued up to the date of termination of employment.
      For
      purposes of this Agreement “Cause” means any grounds at common law for which an
      employer is entitled to dismiss an employee.

     

    9.2 Termination
      by the Company without Cause

     

    
      	 	
              (a)

            	
              Separation
                Package

            

    

     

    The
      Company may terminate the Executive’s employment without Cause at any time prior
      to the expiry of the Term or upon the expiry of the Term by not agreeing to
      extend the Term by providing the Executive with a Separation Package (the
“Separation
      Package”)
      equal
      to the greater of:

     

    
      	 	
              (i)

            	
              Total
                Cash Compensation for whatever period of time is remaining in the
                Term;
                or

            

    

     

    
      	 	
              (ii)

            	
              One
                years’ Total Cash Compensation.

            

    

     

    “Total
      Cash Compensation” is defined as the annualized amount of Base Salary plus Bonus
      Payment for the prior 12-month period.

     

    The
      Separation Package shall be payable in a lump sum within thirty (30) days of
      termination.

     

    9.3 Termination
      by the Executive for Good Reason

     

    Should
      the Executive terminate his employment for Good Reason, as hereinafter defined,
      he shall receive the Separation Package set out in section 9.2(a) and (b).
      Failure of the Executive to terminate his employment on the occurrence, of
      any
      event which would constitute Good Reason shall not constitute waiver of his
      right under this section 9.3. “Good Reason” is defined as the occurrence of any
      of the following without the Executive’s express written consent:

     

    
      	 	
              (a)

            	
              an
                adverse change in the Executive’s position, titles, duties (including any
                position or duties as a director of the Company) or responsibilities
                (including new, additional or changed formal or informal reporting
                responsibilities) or any failure to re-elect or re-appoint him to
                any such
                positions, titles, duties or offices, except in connection with the
                termination of his employment for
                Cause;

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	 	
              (b)

            	
              a
                reduction by the Company of the Executive’s Base Salary or any change in
                the basis upon which the Executive’s annual compensation is determined or
                paid if the change is or will be adverse to the
                Executive;

            

    

     

    
      	 	
              (c)

            	
              a
                sale to a person (which, for all purposes hereof, shall include,
                without
                limitation, an individual, sole proprietorship, partnership,
                unincorporated association, unincorporated syndicate, unincorporated
                organization, trust, body corporate and a trustee, executor, administrator
                or other legal representative) or group of persons not affiliated
                with the
                Company of all or substantially all of the assets of the
                Company;

            

    

     

    
      	 	
              (d)

            	
              a
                change in control of the Company occurs in any manner whatsoever,
                including without limitation as a result of a take-over bid,
                reorganization of capital, share exchange, arrangement, merger,
                amalgamation or other combination of the Company with any other entity,
                and for the purposes of this Agreement “control” means a relationship
                between persons wherein one person (or group of persons acting jointly
                and
                in concert) has the ability to manage the affairs of, or to significantly
                affect the management decisions of, another person, including without
                limitation the beneficial ownership, directly or indirectly through
                one or
                more persons, of voting securities or securities convertible into
                or
                exchangeable for voting securities which are sufficient to determine
                the
                material business decisions of a
                person;

            

    

     

    
      	 	
              (e)

            	
              any
                breach by the Company of any provision of this
                Agreement.

            

    

     

    ARTICLE
      10

    DIRECTORS/OFFICERS
      LIABILITY

     

    10.1 Indemnity

     

    
      	 	
              (a)

            	
              Subject
                to the provisions of the Business
                Companys Act
                (Alberta),
                the Company agrees to indemnify and save the Executive harmless from
                and
                against all costs, charges and expenses, including an amount paid
                to
                settle an action or satisfy a judgment, reasonably incurred by him
                in
                respect of any civil, criminal or administrative action or proceeding
                to
                which the Executive is made a party by reason of having been a director
                or
                officer of the Company, if

            

    

     

    
      	 	
              (i)

            	
              the
                Executive acted honestly and in good faith with a view to the best
                interests of the Company; and

            

    

     

    
      	 	
              (ii)

            	
              in
                the case of a criminal or administrative action or proceeding that
                is
                enforced by a monetary penalty, the Executive had reasonable grounds
                for
                believing that his conduct was
                lawful.

            

    

     

    
      	 	
              (b)

            	
              Subject
                to the provisions of the Business

                Companys Act
                (Alberta), the Company agrees, with the approval of the court, to
                indemnify and save the Executive harmless from and against all costs,
                charges and expenses reasonably incurred by him in respect of an
                action by
                or on behalf of the Company to procure a judgment in the Company’s favour
                to which the Executive is made a party by reason of having been a
                director
                or officer of the Company, if:

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	 	
              (i)

            	
              the
                Executive acted honestly and in good faith with a view to the best
                interests of the Company; and

            

    

     

    
      	 	
              (ii)

            	
              in
                the case of a criminal or administrative action or proceeding that
                is
                enforced by a monetary penalty, the Executive had reasonable grounds
                for
                believing that his conduct was
                lawful.

            

    

     

    10.2 Insurance

     

    
      	 	
              (a)

            	
              The
                Company shall purchase and maintain, throughout the period during
                which
                the Executive acts as a director or officer o£ the Company or a Member
                Company and for a period of two years after the date that the Executive
                ceases to act as a director or officer of the Company or a Member
                Company,
                directors’ and officers’ liability insurance for the benefit of the
                Executive and the Executive’s heirs, executors, administrators and other
                legal representatives, such that the Executive’s insurance coverage is, at
                all times, at least equal to or better than any insurance coverage
                the
                Company purchases and maintains for the benefit of its then current
                directors and officers, from time to
                time.

            

    

     

    
      	 	
              (b)

            	
              If
                for any reason whatsoever, any directors’ and officers’ liability insurer
                asserts that the Executive or the Executive’s heirs, executors,
                administrators or other legal representatives are subject to a deductible
                under any existing or future directors’ and officers’ liability insurance
                purchased and maintained by the Company for the benefit of the Executive
                and the Executive’s heirs, executors, administrators and other legal
                representatives, the Company shall pay the deductible for and on
                behalf of
                the Executive or the Executive’s heirs, executors, administrators or other
                legal representatives, as the case may
                be.

            

    

     

    10.3 Survival

     

    The
      provisions of sections 10.1 and 10.2 of this Agreement shall survive the
      termination of this Agreement or the employment of the Executive with the
      Company and such provisions shall continue in full force and effect for the
      benefit of the Executive.

     

    ARTICLE
      11

    NON-COMPETITION
      AND CONFIDENTIALITY

     

    11.1 Non-Competition

     

    The
      Executive recognizes and understands that in performing the duties and
      responsibilities of his employment as outlined in this Agreement, he will be
      a
      key employee of the Company and will occupy a position of high fiduciary trust
      and confidence, pursuant to which he has developed and will develop and acquire
      wide experience and knowledge with respect to all aspects of the services and
      businesses carried on by the Company and its Member Companies and the manner
      in
      which such businesses are conducted. It is the expressed intent and agreement
      of
      the Executive and of the Company that such knowledge and experience shall be
      used solely and exclusively in the furtherance of the business interests of
      the
      Company and its Member Companies and not in any manner detrimental to them.
      The
      Executive therefore agrees that so long as he is employed by the Company
      pursuant to this Agreement he shall not engage in any practice or business
      in
      competition with the business of the Company or any of its Member
      Companies.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    11.2 Confidentiality

     

    The
      Executive further recognizes and understands that in the performance of his
      employment duties and responsibilities as outlined in this Agreement, he will
      be
      a key employee of the Company and will become knowledgeable, aware and possessed
      of all confidential and proprietary information, know-how, data, strategic
      studies, techniques, knowledge and other confidential information of every
      kind
      or character relating to or connected with the business or corporate affairs
      and
      operations of the Company and its Member Companies and includes, without
      limitation, geophysical studies and data, market data, engineering information,
      shareholder data, client lists, compensation rates and methods and personnel
      information (collectively “Confidential
      Information”)
      concerning the business of the Company and its Member Companies. The Executive
      therefore agrees that, except with the consent of the Board, he will not
      disclose such Confidential Information to any unauthorized persons so long
      as he
      is employed by the Company pursuant to this Agreement and for a period of 24
      months thereafter; provided that the foregoing shall not apply to any
      Confidential Information which is or becomes known to the public or to the
      competitors of the Company or its Member Companies other than by a breach of
      this Agreement.

     

    11.3 Following
      Termination of Agreement

     

    Subject
      to this provision and without otherwise restricting the fiduciary obligations
      imposed upon, or otherwise applicable to the Executive as a result of the
      Executive having been a senior officer and key employee of the Company, the
      Executive shall not be prohibited from obtaining employment with or otherwise
      forming or participating in a business competitive to the business of the
      Company after termination of this Agreement and the Executive’s employment with
      the Company.

     

    ARTICLE
      12

    CHANGES
      TO AGREEMENT

     

    Any
      modifications or amendments to this Agreement must be in writing and signed
      by
      all Parties or else they shall have no force and effect.

     

    ARTICLE
      13

    ENUREMENT

     

    This
      Agreement shall enure to the benefit of and be binding upon the Parties and
      their respective successors and assigns, including without limitation, the
      Executive’s heirs, executors, administrators and personal
      representatives.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    ARTICLE
      14

    GOVERNING
      LAW

     

    This
      Agreement shall be construed in accordance with the laws of the Province of
      Alberta and the laws of Canada applicable therein.

     

    ARTICLE
      15

    NOTICES

     

    15.1 Notice
      to Executive

     

    Any
      notice required or permitted to be given to the Executive shall be deemed to
      have been received if delivered personally to the Executive or sent by courier
      to the Executive’s home address last known to the Company.

     

    15.2 Notice
      to Company

     

    Any
      notice required or permitted to be given to the Company shall be deemed to
      have
      been received if delivered personally to, sent by courier, or sent by facsimile
      to:

     

    Gran
      Tierra Energy Inc. 

    300,
      611-10th Avenue S.W. 

    Calgary,
      Alberta, Canada, T2R 0B2 

    Fax:
      (403) 265-3242

    

    ARTICLE
      16

    CURRENCY

     

    All
      dollar amounts set forth or referred to in this Agreement refer to Canadian
      currency.

     

    ARTICLE
      17

    WITHHOLDING

     

    All
      payments made by the Company to the Executive or for the benefit of the
      Executive shall be less applicable withholdings and deductions.

     

    ARTICLE
      18

    INDEPENDENT
      LEGAL ADVICE

     

    The
      Executive acknowledges that the Executive has been advised to obtain independent
      legal advice with respect to entering into this Agreement, that he has obtained
      such independent legal advice or has expressly deemed not to seek such advice,
      and that the Executive is entering into this Agreement with full knowledge
      of
      the contents hereof, of the Executive’s own free will and with full capacity and
      authority to do so.

     

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    IN
      WITNESS OF WHICH the
      Parties have duly executed this Agreement this 1st day of December,
      2006.

     

    
      	 	
              GRAN
                TIERRA ENERGY INC.

            
	 	 
	 	 
	 	
              By:
                /s/ Dana
                Coffield                                              
                

            
	 	
                    
                Name: Dana Coffield

            
	 	
                    
                Title:   President and
                CEO

            

    

    

    

    
      	
              SIGNED,
                SEALED & DELIVERED 

              In
                the presence of:

               

               

                 
                                 
                /s/ James
                Hart                 
                    

                                       
                Witness

            	
               

               

               

               

                
                                  
                /s/ Martin
                Eden                
                     

                                      
                Martin Eden

            

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
      A

     

    Duties
      & Responsibilities

     

    
      	
              ·

            	
              Management
                of financing, accounting, treasury, tax, risk management,
                compliance/reporting and investor relations functions of Gran Tierra
                Energy Inc. and its subsidiaries

            

    

     

    
      	
              ·

            	
              Coordination
                of financial functions of operating
                subsidiaries

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