Document:

GTE - 2012.12.31 - EX 10.71

Exhibit 10.71

    
SEVENTH AMENDMENT
TO
CREDIT AGREEMENT
dated as of
January 17, 2013
among

SOLANA RESOURCES LIMITED,
as Borrower,

GRAN TIERRA ENERGY INC.,

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent and Global Coordinator,

and
The Lenders Party Hereto
    

LEGAL_US_W # 73933737.1 

SEVENTH AMENDMENT TO CREDIT AGREEMENT

THIS SEVENTH AMENDMENT TO CREDIT AGREEMENT (this “Seventh Amendment”) dated as of January 17, 2013, is among SOLANA RESOURCES LIMITED, a corporation duly formed and existing under the laws of the Province of Alberta, Canada (the “Borrower”); GRAN TIERRA ENERGY INC., a corporation formed and existing under the laws of the State of Nevada (the “Parent”); WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) for the lenders party to the Credit Agreement referred to below (collectively, the “Lenders”) and as global coordinator; and the undersigned Lenders.
R E C I T A L S
A.    The Borrower, the Parent, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of July 30, 2010, as amended by that certain First Amendment to Credit Agreement dated as of August 31, 2010, that certain Second Amendment to Credit Agreement dated as of November 5, 2010, that certain Third Amendment to Credit Agreement dated as of January 20, 2011, that certain Fourth Amendment to Credit Agreement dated as of February 14, 2011, that certain Fifth Amendment to Credit Agreement dated as of May 18, 2012, and that certain Sixth Amendment to Credit Agreement dated as of October 9, 2012, among the Borrower, the Parent, the Administrative Agent and the Lenders party thereto (the “Credit Agreement”), pursuant to which the Lenders have made certain extensions of credit available to the Borrower.
B.    The Borrower has requested and the Lenders have agreed to amend certain provisions of the Credit Agreement.
C.    NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement.  Unless otherwise indicated, all references to Sections in this Seventh Amendment refer to Sections of the Credit Agreement.
Section 2.    Amendments to Credit Agreement.
2.1    Amendment to Section 9.16.  Section 9.16 is hereby amended and restated in its entirety to read as follows:
Section 9.16    Swap Agreements.  The Parent will not, and will not permit any Subsidiary to, enter into any Swap Agreements with any Person other than  (a) Swap Agreements entered into by the Parent or the Borrower in respect of commodities (i) with an Approved Counterparty and (ii) the notional volumes for which (when aggregated with other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date such Swap Agreement is executed, 85% of the reasonably anticipated projected production from proved, developed, producing Oil and Gas Properties of the Parent and the Subsidiaries for each month during the period during which such Swap Agreement is in effect for each of crude oil and natural gas, calculated separately; (b) Swap Agreements entered into by the Parent or the Borrower in respect of interest rates with an Approved Counterparty, as follows: (i) Swap Agreements effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other Swap Agreements of the Parent and the Borrower then in effect effectively converting interest rates from fixed to floating) do not 

LEGAL_US_W # 73933737.1 

exceed 50% of the then outstanding principal amount of the Parent’s or Borrower’s Debt for borrowed money which bears interest at a fixed rate and (ii) Swap Agreements entered into by the Parent or the Borrower effectively converting interest rates from floating to fixed, the notional amounts of which (when aggregated with all other Swap Agreements of the Parent and the Borrower then in effect effectively converting interest rates from floating to fixed) do not exceed 100% of the then outstanding principal amount of the Parent’s Debt for borrowed money which bears interest at a floating rate; and (c) Swap Agreements in respect of foreign exchange and currency option transactions with an Approved Counterparty providing for (1) the purchase by the Borrower or any Guarantor of an agreed amount of Colombian Pesos in exchange for the sale by the Borrower or such Guarantor of an agreed amount of US Dollars (or entitling the Borrower or such Guarantor to purchase at a strike price a specified quantity of Colombian Pesos and to sell at the strike price a specified quantity of US Dollars) and (2) the purchase by the Borrower or any Guarantor of an agreed amount of US Dollars in exchange for the sale by the Borrower or such Guarantor of an agreed amount of Colombian Pesos (or entitling the Borrower or such Guarantor to purchase at a strike price a specified quantity of US Dollars and to sell at the strike price a specified quantity of Colombian Pesos), in each case, to provide protection against fluctuations in currency values for the purpose of making tax payments by or on behalf of itself or any Subsidiary in Colombia.  In no event shall any Swap Agreement contain any requirement, agreement or covenant for the Parent or any Subsidiary to post collateral or margin to secure obligations under such Swap Agreement or to cover market exposures and neither the Parent nor the Borrower will enter into any Swap Agreement unless concurrently therewith, the Parent or the Borrower (as applicable) shall have delivered to the Administrative Agent a duly executed consent and agreement of the counterparty to such Swap Agreement in form and substance satisfactory to the Administrative Agent, pursuant to which such counterparty shall (i) consent to the grant of Liens in all of the Parent’s or the Borrower’s right, title and interest in and to such Swap Agreement to secure the Indebtedness and (ii) agree to make all payments under such Swap Agreement to the Collection Account.
Section 3.    Conditions Precedent.  This Seventh Amendment shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) (the “Seventh Amendment Effective Date”):
3.1    The Administrative Agent shall have received from the Lenders, the Borrower, the Parent and the Subsidiary Guarantors, counterparts (in such number as may be requested by the Administrative Agent) of this Seventh Amendment signed on behalf of such Persons.
3.2      No Default shall have occurred and be continuing, after giving effect to the terms of this Seventh Amendment.
Section 4. Miscellaneous.
4.1    Confirmation.  The provisions of the Credit Agreement, as amended by this Seventh Amendment, shall remain in full force and effect following the effectiveness of this Seventh Amendment.
4.2    Ratification and Affirmation; Representations and Warranties.  The Borrower and the Parent each hereby: (a) acknowledges the terms of this Seventh Amendment; (b) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, after giving effect to the amendments contained herein; (c) agrees that from and after the Seventh Amendment Effective Date each reference to the Credit Agreement in the Loan Documents shall be deemed to be a reference to the Credit Agreement, as amended by this Seventh 

LEGAL_US_W # 73933737.1     2

Amendment; and (d) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Seventh Amendment:  (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects, unless such representations and warranties are stated to relate to a specific earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects as of such earlier date and (ii) no Default has occurred and is continuing.
4.3    Loan Document.  This Seventh Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto.
4.4    Counterparts.  This Seventh Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this Seventh Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.
4.5    NO ORAL AGREEMENT.  THIS SEVENTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.
4.6    GOVERNING LAW.  THIS SEVENTH AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
[SIGNATURES BEGIN NEXT PAGE]

LEGAL_US_W # 73933737.1     3

IN WITNESS WHEREOF, the parties hereto have caused this Seventh Amendment to be duly executed as of the date first written above.

BORROWER:    SOLANA RESOURCES LIMITED
By:      /s/ Dana Coffield                
Name:  Dana Coffield
Title:    President & CEO

    

PARENT:    GRAN TIERRA ENERGY INC.
By:      /s/ Dana Coffield                
Name:  Dana Coffield 
Title:    President & CEO

Signature Page
Seventh Amendment to Credit Agreement

ADMINISTRATIVE AGENT:    WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent and a Lender

By:  /s/ Juan Carlos Sandoval            
Name:    Juan Carlos Sandoval
Title:    Director

By:                              
Name:    
Title:    
    

Signature Page
Seventh Amendment to Credit Agreement

RATIFICATION AND AFFIRMATION

Each of the undersigned Guarantors hereby: (a) acknowledges the terms of this Seventh Amendment; (b) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, after giving effect to the amendments contained herein; (c) agrees that from and after the Seventh Amendment Effective Date (as defined in this Seventh Amendment) each reference to the Credit Agreement in the Loan Documents shall be deemed to be a reference to the Credit Agreement, as amended by this Seventh Amendment; and (d) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Seventh Amendment:  (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects, unless such representations and warranties are stated to relate to a specific earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects as of such earlier date and (ii) no Default has occurred and is continuing.

EXECUTED AS A DEED by:
SOLANA PETROLEUM EXPLORATION
(COLUMBIA) LIMITED
/s/ Cecilia Lopes Victorino
Witness
By:  /s/ Julio Moreira                        
Name:    Julio Moreira
Title:    Director

GRAN TIERRA EXCHANGECO INC.

    
By:      /s/ Dana Coffield                
Name:    Dana Coffield                    
Title:    President & CEO                            

EXECUTED AS A DEED by:
GRAN TIERRA ENERGY INTERNATIONAL 
HOLDINGS LTD. 
/s/ Cecilia Lopes Victorino
Witness
By:      /s/ Julio Moreira                
Name:    Julio Moreira
Title:    Director

Signature Page
Seventh Amendment to Credit Agreement

EXECUTED AS A DEED by:
GRAN TIERRA ENERGY CAYMAN 
ISLANDS INC.
/s/ Cecilia Lopes Victorino
Witness
By:  /s/ Julio Moreira            
Name:    Julio Moreira
Title:    Director

ARGOSY ENERGY, LLC
    

By: /s/ Julio Moreira                
Name:    Julio Moreira
Title:    Manager

GRAN TIERRA ENERGY COLOMBIA, LTD.
By: Argosy Energy, LLC, the general partner of
      Gran Tierra Energy Colombia, Ltd.
    

By:  /s/ Julio Moreira                
Name: Julio Moreira
Title:    Manager

GRAN TIERRA ENERGY BRASIL LTDA.

By:     /s/ Julio Moreira                
Name: Julio Moreira
Title:    President

WITNESSES:

	
		
	/s/ Cecilia Lopes Victorino____________
Name: Cecilia Lopes Victorino
ID:

	_____________________________
Name:
ID:

Signature Page
Seventh Amendment to Credit AgreementGTE - 2012.12.31 - EX 10.72

Exhibit 10.72

ADDENDUM No. 3 TO TRANSPORTATION CONTRACT NO. VIT – 001 – 2012

Date: Bogotá, D. C., the 30th of December of 2012

Contract No. VIT – 001 – 2012

SENDER:        GRAN TIERRA ENERGY COLOMBIA LTD
NIT:            860.516.431-7

TRANSPORTER:    ECOPETROL S. A.
NIT:            899.999.068 – 1

TYPE OF CRUDE:        OWN PRODUCTION XX        OWNERSHIP ___

PURPOSE: 
	
	
	Service of transportation of liquid hydrocarbons through the Mansoya – Orito Pipeline (OMO) and the Trans - Andean Pipeline (OTA).

The parties agree to enter into this Addendum, based on the following 

R E C I T A L S

		
	1.
	Contract No. VIT – 001 – 2012 (hereinafter the Contract) is in force between the parties, the purpose of which is the service of transportation of liquid hydrocarbons through the Mansoya – Orito Pipeline (OMO) and the Trans - Andean Pipeline (OTA).

		
	2.
	The date of expiration of the contract is the 31st of December of 2012. 

		
	3.
	The SENDER is interested in expanding the term of execution of the Contract. 

		
	4.
	ECOPETROL has expressed to the SENDER that, because of the incorporation of the company called CENIT S. A. S. (hereinafter CENIT) it will transfer to that company the transportation assets through which it is currently rendering the services under the Contract. Therefore, as from the date of transfer of the assets, CENIT will provide the service of transportation of liquid hydrocarbons through the Mansoya – Orito Pipeline (OMO) and the Trans - Andean Pipeline (OTA).

		
	5.
	ECOPETROL has expressed its availability to extend the term of execution of the Contract until the 30th of June of 2013, making clear that on the date of delivery of the assets to CENIT, the assignment of the Contract in favor of that company will be effective.

A G R E E M E N T

As from the 1st of January of 2013, the Contract will be amended according to the following clauses: 

FIRST: To amend the estimated value of the contract, corresponding to the ECONOMIC CONDITIONS contained in the Specific Conditions of the Contract, as follows: 

	
		
	“Estimated Final Value of the Contract
	Nineteen million six hundred and sixty seven thousand dollars of the United States of America (USD $ 19.667.000).

SECOND: To amend the insured value that corresponds to the SURETIES contained in the Specific Conditions of the Contract, as follows: 

	
		
	Type of Surety
	Total Amount

	Performance Bond
	Six billion nine hundred and twenty two million pesos Colombian legal tender ($ 6.922.000)

The SENDER agrees to extend the term of validity of the Surety within five (5) business days after the signature of this Addendum. The respective certificates of amendment must be handed over to ECOPETROL within three (3) calendar days from their date of issue. 

The amendment of the guaranty must maintain the cover of the contract for the term thereof plus 120 additional days. 

PARAGRAPH: In case of assignment of this contract by ECOPETROL to CENIT the provisions of the nineteenth clause of this Contract will apply. 

THIRD: To amend the Third Clause of the General Conditions of the Contract, as follows: 

“THIRD CLAUSE

TERM

3.1. The term of execution of the contract will be from the date of signature until the 30th of June of 2013. 

3.2. The term of execution of the Service for the Contracted Capacity the purpose of this Contract can be extended by mutual consent of the Parties, by means of a written document entered into before the date of termination thereof, subject to the existence of Available Capacity of the Pipeline during the month of Operation for which the service is intended. 

3.3. The monthly payment obligation on the SENDER’S charge regarding the Service, must be done during the entire term of execution of the Contract. 

PARAGRAPH: The Parties understand and accept that the extension of the term established in this Addendum only gives the right to the transportation capacity subject to availability in the Pipeline

FOURTH: To amend the Fourteenth Clause of the General Conditions of the Contract, as follows: 

“FOURTEENTH CLAUSE
CONTRACT TERMINATION

14.1. This Contract will end for the expiration of the term agreed. 

14.2. The Parties agree that ECOPETROL may declare the early termination of the Contract at any time, with no settlement of damages whatsoever in favor of the SENDER, in the following events: 

		
	a)
	The serious breach of the SENDER’S obligations which have not been cured within the grace period, if such is the case; 

		
	b)
	The dissolution of the SENDER’S legal entity; 

		
	c)
	The unauthorized assignment of the Contract by the SENDER;

		
	d)
	Due to changes in the regulation that makes more onerous the performance of ECOPETROL’S obligations; 

		
	e)
	As a consequence of any of the following causes: (i) the SENDER’S fraud, or (ii) if the SENDER incurs in acts or conducts that endanger the operational and / or technical stability of the Pipelines; 

		
	f)
	By written notice in which ECOPETROL informs the early termination of the Contract. Said written notice must be sent to the SENDER no less than thirty (30) calendar days before the effective date of termination of the Contract. 

		
	g)
	In case that the SENDER does not file or does not renew the Surety in the terms established in this Agreement. 

14.3. The termination will not release the Parties from their corresponding obligations and responsibilities attributable to terms prior to the end date. 

14.4. The early termination of this contract will not release the SENDER from the obligations that survive the termination of the Contract, in particular the one related to the payment of the Fees pending and the payment of the penalty, as well as the confidentiality. 

14.5. For the purposes of the application of this clause, no prior judicial or private requirement whatsoever will be required”. 

FIFTH: To amend the Nineteenth Clause of the General Conditions as follows: 

“NINETEENTH CLAUSE
ASSIGNMENT

19.1. The SENDER cannot assign or transfer its rights or obligations under this Contract, and it cannot be substituted in its contractual position, without the prior written authorization of ECOPETROL. For the study and approval of the assignment, the SENDER must evidence that it is on time for all concepts regarding its contractual obligations. The company that replaces the SENDER must have enough financial, technical, administrative and legal capacity to comply with the obligations of this Contract. 

19.2. The authorized successors and assignees must assume all of the SENDER’S responsibilities and obligations hereunder, as well as the provisions of the Clause regarding the Sureties of the General and Specific Conditions, and such demands must be expressly stipulated in the instrument that evidences such assignment. 

19.3. ECOPETROL will not require any authorization of the SENDER to assign this Contract. 

19.4. Without prejudice to the foregoing, the SENDER hereby authorizes, from now, the assignment of this contract to CENIT. In case that this assignment takes place, ECOPETROL will give written notice of the assignment to the SENDER. The Parties understand and accept that the assignment to CENIT does not require the authorization or acceptance of any additional one on the SENDER’S part

19.5. Once the assignment is effective, the SENDER understands and accepts that it and CENIT will revise the commercial conditions of this contract. 

FIRST PARAGRAPH: In a maximum term of ten (10) business days as from the notification of the assignment of this contract to CENIT, the SENDER must amend the surety purchased in favor of ECOPETROL to add CENIT as beneficiary thereof. 

SECOND PARAGRAPH: As from the date of assignment of this contract to CENIT by ECOPETROL, the SENDER understands and accepts that Annex No. 1 to the Contract by the Transporter Manual, Offloading Standards and all other norms established by CENIT and in consequence, it will be applied according to the provisions established for these purposes in the Contract”. 

SIXTH: To amend the Twenty Sixth Clause of the General Conditions, as follows: 

TWENTY SIXTH CLAUSE
INTEGRALITY

26.1. This Contract is the only and integral agreement regarding the purpose thereof, and replaces any prior agreement that has not been established in the Contract. 

26.2. The following documents are integral part of the Contract: 

ANNEX 1    :    ECOPETROL S. A.: PIPELINE’S TRANSPORTER MANUAL
		
	ANNEX 2
	:    GUIDE FOR THE MANAGEMENT OF ACCOUNTS PAYABLE AND SERVICES

		
	ANNEX 3
	:    ECOPETROL’S GENERAL CLAUSES FOR THE PERFORMANCE BOND

		
	ANNEX 4:
	:    MODEL OF THE STAND BY LETTER OF CREDIT. 

26.3. Likewise, are integral part of this Contract all the rules and procedures that ECOPETROL or its assignees have established for the performance of the activities the subject matter of this Contract. 

26.4. If any provision of this contract is forbidden, void, inefficacious or cannot be enforceable according to the applicable provisions, all other provisions will survive it with full binding and mandatory effects for the Parties, unless if the provision that is forbidden, void, inefficacious or unenforceable is an essential one, in a way that the construal or performance thereof in the absence of such provision is not possible”. 

SEVENTH: With the exception of the foregoing provisions, all the clauses of the Contract will be applicable to the contractual relations between ECOPETROL and the SENDER. This Addendum is not a novation of Contract No. VIT – 001 – 2012, which remains in full force in all of its parts that were not expressly amended by this document

EIGHTH: This Addendum is perfected with the execution thereof. For its execution, the approval of the surety on the charge of the SENDER is required. 

In witness hereof, it is signed in two identical counterparts in the city of Bogotá, D. C, on the thirtieth (30th) day of the month of December of year 2012. 

BY THE SENDER:                    BY ECOPETROL:

	
		
	Signed;
/s/ Alejandra Escobar Herrera

	Signed;
/s/ Martha Escheverri Benjumea

	Name: ALEJANDRA ESCOBAR HERRERA
	Name: MARTHA ECHEVERRI BENJUMEA

	Position:  Legal Representative
C. C . No. 52.646.943 of Bogotá, D. C.
	Position: Acting Head of the Transportation Services’ Commercial Department

	Signature:
/s/ Ivan Tobon Garcia

	 

	Name: IVÁN TOBÓN GARCÍA
	 

	Position:  Legal Representative
C. C . No. 79.751.294 of Bogotá, D. C.

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