Document:

AMENDMENT
NO. 3

       

      TO

       

      COLOMBIAN
PARTICIPATION AGREEMENT

       

      BY
AND AMONG

       

      GRAN
TIERRA ENERGY COLOMBIA LTD.,

       

      GRAN
TIERRA ENERGY INC.

       

      AND

       

      CROSBY
CAPITAL, LLC

       

      DATED

       

      AS
OF DECEMBER 31, 2008

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      AMENDMENT
NO. 3

       

      TO

      

      COLOMBIAN
PARTICIPATION AGREEMENT

      

      This
Amendment No. 3 to Colombian Participation Agreement (this “Amendment”)
is effective as of December 31, 2008 by and among Gran Tierra
Energy Colombia Ltd., (the “Partnership”),
a Utah partnership (formerly known as Argosy
Energy International, a Utah limited partnership (“Argosy”)),
Gran
Tierra Energy Inc., a Nevada corporation (“Gran
Tierra”), and Crosby
Capital, LLC, a
Texas limited liability company (“Crosby”).  The
Partnership, Gran Tierra and Crosby are each individually referred to herein as
a “Party,”
and collectively as the “Parties.”  All
capitalized terms not otherwise defined here in shall be given the meaning
assigned to such terms in that certain Colombian Participation Agreement, dated
as of June 22, 2006, by and among Argosy, Gran Tierra, and Crosby (the “Original
Participation Agreement”), as amended by Amendment No. 1 dated as of
November 1, 2006 (“Amendment No.
1”) and Amendment No. 2 dated as of July 3, 2008 (“Amendment No.
2”).

       

      Recitals

       

      Whereas,
the Parties executed the Original Participation Agreement, Amendment No. 1 and
Amendment No. 2 and  such Original Participation Agreement, as amended
by Amendment No. 1 and Amendment No. 2 is hereinafter referred to as the “Agreement”;

       

      Whereas,
Gran Tierra is engaged in a corporate restructuring described on Exhibit A hereto (the “Corporate
Restructuring”) which requires the consent of Crosby under the
Agreement;

       

      Whereas,
in connection with the proposed Corporate Restructuring, the Parties desire to
further amend the Agreement to confirm their rights and obligations thereunder
subsequent to the proposed Corporate Restructuring;

       

      Whereas,
Crosby desires to provide its consent to the Corporate Restructuring, which
consent shall become effective in accordance with the provisions of this
Amendment No. 3;

       

      Whereas,
pursuant to Section 13.4 of the Agreement, no modification or waiver of any
provision of the Agreement shall be effective unless set forth in writing signed
by the Parties; and

       

      Whereas,
effective as of December 18, 2008, the general partner of the Partnership as of
such date, Argosy Energy Corp., a Delaware corporation, converted into a
Delaware limited liability company, Argosy Energy, LLC.

      
        
           

        

        
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      Agreement

       

      Now,
Therefore, in consideration of the covenants and promises herein, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereto agree as follows:

       

      1.           A
new Section 1.63 shall be added to the Agreement as follows:

       

      1.63  “Indirect Subsequent
Partnership Sale” has the meaning set forth in Section
8.2.

       

      2.           A
new subsection 1.64 shall be added as follows:

       

      1.64  “Parent” shall
mean any entity that (i) owns directly or indirectly 51% or more of the
outstanding equity securities of Gran Tierra, or (ii) possesses directly or
indirectly the right to elect a majority of the board of directors of Gran
Tierra, or (iii) which acquires all or substantially all the assets of Gran
Tierra.

       

      3.           A
new subsection 7.7 shall be added as follows:

       

      7.7  Basic Financial
Information and Reporting.

       

      7.7.1    During
the term of this Agreement, Gran Tierra will maintain true books and records of
account in which full and correct entries will be made of all its business
transactions pursuant to a system of accounting established and administered in
accordance with U.S. GAAP consistently applied, and will set aside on its books
all such proper accruals and reserves as shall be required under U.S.
GAAP  consistently applied.

       

      7.7.2    During
the term of this Agreement, if each of Gran Tierra and its Parent (if any)
ceases to be a reporting issuer under Section 12 of the Securities Exchange Act
of 1934, as amended, and to the extent requested by Crosby, as soon as
practicable after the end of each fiscal year of Gran Tierra and its Parent (if
any), and in any event within one hundred eighty (180) days thereafter, Gran
Tierra will furnish such Investor a balance sheet of Gran Tierra, as at the end
of such fiscal year, and a statement of income and a statement of cash flows of
Gran Tierra, for such year, all prepared in accordance with U.S. GAAP
consistently applied,  and setting forth in each case in comparative
form the figures for the previous fiscal year, all in reasonable
detail.

      
        
           

        

        
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      7.7.3   
During the term of this Agreement, if each of Gran Tierra and its Parent (if
any) ceases to be a reporting issuer under Section 12 of the Securities Exchange
Act of 1934, as amended, and to the extent requested by Crosby, Gran Tierra will
furnish Crosby, as soon as practicable after the end of the first, second and
third quarterly accounting periods in each fiscal year of Gran Tierra, and in
any event within sixty (60) days thereafter, a balance sheet of Gran Tierra as
of the end of each such quarterly period, and a statement of income and a
statement of cash flows of Gran Tierra for such period and for the current
fiscal year to date, prepared in accordance with U.S. GAAP consistently applied
, with the exception that notes need not be attached to such quarterly
statements and year-end audit adjustments need not be made.

       

      7.7.4    Commencing
after January 1, 2009, if, during the term of this Agreement,  the
Partnership becomes an obligor or guarantor under any bank financing or other
credit facility or Partnership interests or assets are pledged as security for
any obligations under a bank financing or other credit facility, then Gran
Tierra or the Partnership shall promptly provide to Crosby copies of all such
fully executed credit and financing agreements and any related security
documents.

       

      4.           Section
6.2.1(b) of the Agreement shall be deleted in its entirety and replaced with the
following:

       

      (b)        
Term: The
Initial Letter of Credit shall remain outstanding for a period of five years
from date of Closing. Such period is referred to herein as the “Initial
Term.”

      

       

      5.           Section
6.3.2 shall be amended to add at the end of the existing text,  a new
subsection 6.3.2(d) providing as follows:

       

      (d) and
absence of any borrowings under any bank financing or other credit facility with
respect to which the Partnership is an obligor or guarantor, or with respect to
which any Partnership interests or assets have been pledged as security for
obligations thereunder.

       

      6.           A
new subsection 6.8 shall be added as follows:

       

      6.8  Performance by
Affiliates.  Notwithstanding anything to the contrary provided
herein, Gran Tierra shall be permitted to cause any of its affiliates to perform
the obligations of Gran Tierra under this Section 6, including without
limitation, procuring and delivering Initial Letters of Credit and Letters of
Credit.

       

      7.           Section
8.2 of the Agreement shall be deleted in its entirety and replaced with the
following:

      
        
           

        

        
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      8.2.  Subsequent Sale of
the Partnership or its Successors.  Notwithstanding anything to
the contrary contained in this Agreement, (i) Gran Tierra and its Affiliates may
assign, sell, transfer or otherwise dispose of any ownership interest in the
Partnership (a “Subsequent
Partnership Sale”) or of any interest in a subsidiary of Gran Tierra that
owns, directly or indirectly, an ownership interest in the Partnership (an
“Indirect Subsequent
Partnership Sale”), to a Person that is not an Affiliate of Gran Tierra
without the consent of Crosby provided that Crosby receives prior written notice
of any such non Affiliate transaction and further provided that the
non-Affiliate transferee executes a counterpart to this Agreement and thereby
agrees to be bound by the terms hereof, including without limitation the
provisions of Section
6, and (ii) Gran Tierra and its Affiliates may consummate a Subsequent
Partnership Sale or an Indirect Subsequent Partnership Sale by, among and
between Affiliates of Gran Tierra without Crosby’s consent and without an
agreement by such Affiliate transferee to execute a counterpart to this
Agreement or to be bound by the terms hereof provided that Gran Tierra and the
Partnership shall continue to be bound by this Agreement and Gran Tierra shall
provide Crosby with written notice of any such Subsequent Partnership Sale or
Indirect Subsequent Partnership Sale reasonably promptly following the
consummation thereof.

       

      8.           References
to the “Agreement” in the Original Participation Agreement shall be deemed to
include the Original Participation Agreement, as amended by Amendment No. 1,
Amendment No. 2 and this Amendment.  Except as expressly modified or
otherwise as set forth therein or herein, the terms and conditions of the
Original Participation Agreement remain in full force and effect.

       

      9.           This
Amendment does not alter or amend the Fifth Amended Extension Agreement dated
November 12, 2008 between the Parties.  Moreover, the Parties do not
waive any of their rights pursuant to the Agreement or the Fifth Amended
Extension Agreement.

       

      10.         Crosby
hereby consents to the Corporate Restructuring.

       

      11.         Each
Party shall be responsible for and pay all of its own costs and expenses
incurred at any time in connection with this Amendment.

       

      12.         This
Amendment may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the Parties and delivered to the
other Parties, it being understood that all Parties need not sign the same
counterpart.

       

      13.         A
facsimile, telecopy or other reproduction of this Amendment may be executed by
one or more parties to this Amendment, and an executed copy of this Amendment
may be delivered by one or more parties to this Amendment by facsimile or
similar electronic transmission device pursuant to which the signature of or on
behalf of such party can be seen, and such execution and delivery shall be
considered valid, binding and effective for all purposes.  At the
request of any party to this Amendment, all parties to this Amendment agree to
execute an original of this Amendment as well as any facsimile, telecopy or
other reproduction of this Amendment.

       

      
        
          
          

        

        
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      14.           By
their respective signatures below, each Party represents and warrants to the
others, that it has full power and authority to execute and deliver this
Amendment, that all requisite internal approvals, including approval by the
board of directors or other managerial authority has been properly obtained, and
that this Amendment shall constitute the legal, valid and binding obligation of
such Party enforceable in accordance with its terms, except to the extent such
enforcement may be subject to bankruptcy, insolvency, reorganization or other
similar laws affecting enforcement of creditors’ rights generally.

       

      The
remainder of this page left empty.

      
        
           

        

        
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      In Witness
Whereof, each of the undersigned has caused this Amendment No. 3 to be
executed as of the date first written above.

       

      
        
          
            
              
                
                  
                    	
                            Gran
      Tierra
      Energy Colombia Ltd.

                          
	
                            By:
      Argosy Energy, LLC (f/k/a Argosy Energy

                                          Corp.),
      its General Partner

                          
	 
      	 
      	 
      
	 
      	
                            By:

                          	
                            Gran
      Tierra Energy Cayman Islands II, Inc., its Manager

                          
	 
      	 
      	 
      	 
      
	 
      	 
      	
                            By:

                          	       
      /s/ Dana Coffield
	 
      	 
      	 
      	
                            Name:
      Dana Coffield

                          
	 
      	 
      	 
      	
                            Title:  President

                          

                  

                

              

            

          

        

      

      

      
        
          
            
              
                
                  
                    
                      	
                              Gran
      Tierra Energy Inc.

                            
	 
      	 
      
	
                              By:

                            	       
      /s/ Dana Coffield
	 
      	
                              Name:  Dana
      Coffield

                            
	 
      	
                              Title:  President
      and Chief Executive Officer

                            
	 
	
                              Crosby
      Capital, LLC

                            
	 
      	 
      
	
                              By:

                            	       
      /s/ Jay Allen Chaffee
	 
      	
                              Name:  Jay
      Allen Chaffee

                            
	 
      	
                              Title:  President

                            

                    

                  

                

              

            

          

        

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      Exhibit
A

      

      Description
of Corporate Restructuring

       

      All capitalized terms not otherwise
defined herein shall have the meaning assigned to such terms in the Amendment to
which this Exhibit A is an exhibit.

      

      
        	
                1.

              	
                Gran
      Tierra will form a new Cayman corporation, referred to as “CFC
      1.”  CFC 1 will be a wholly-owned direct subsidiary of
      Gran Tierra.

              

      

       

      
        	
                2.

              	
                CFC
      1 will form a new Cayman corporation, referred to as “CFC
      2.”  CFC 2 will be a wholly-owned direct subsidiary of
      CFC 1.

              

      

       

      
        	
                3.

              	
                CFC
      2 will form a new Canadian corporation structured as an Alberta ULC,
      referred to as “ULC.”  ULC
      will be a wholly-owned direct subsidiary of CFC
  2.

              

      

       

      
        	
                4.

              	
                Gran
      Tierra will form a new Delaware limited liability company, referred to as
      “LLC
      1.”  LLC 1 will initially be a wholly-owned direct
      subsidiary of Gran Tierra.

              

      

       

      
        	
                5.

              	
                Prior
      to the time that the Restructuring becomes effective (the “Restructuring
      Effective
      Time”), Argosy Energy Corp., a Delaware corporation and general
      partner in the Partnership (“AEI”),
      will convert (the “AEI
      Conversion”) from a Delaware corporation into a newly formed
      Delaware limited liability company (“AEI
      LLC”) by simultaneously filing articles of organization and a
      certificate of conversion with the Secretary of State of
      Delaware.

              

      

       

      
        	
                 
      

              	
                a)

              	
                Existing
      stock ownership in AEI will convert to membership interests in AEI LLC on
      a pro rata basis.

              

      

       

      
        	
                 
      

              	
                b)

              	
                Gran
      Tierra will own 100% of the outstanding stock of AEI immediately prior to
      the AEI Conversion and will own 100% of the membership interest in AEI LLC
      immediately following the AEI
Conversion.

              

      

       

      
        	
                 
      

              	
                c)

              	
                There
      will be executed a Limited Liability Company Agreement providing for the
      governance of AEI LLC.  The sole Member of AEI LLC will be Gran
      Tierra.

              

      

       

      
        	
                6.

              	
                At
      the Restructuring Effective Time, Gran Tierra will transfer 100% of its
      ownership interest in the Partnership and 100% of its ownership interest
      in AEI LLC to LLC 1.  As a result, as of the Restructuring
      Effective Time:

              

      

       

      a)           LLC
1 will hold 100% of the membership interest in AEI LLC.

       

      
        	
                 
      

              	
                b)

              	
                AEI
      LLC will continue to be the general partner of the Partnership, holding a
      .7413% interest therein.

              

      

       

      
        	
                 
      

              	
                c)

              	
                LLC
      1 will become the limited partner of the Partnership, holding a 99.2857%
      interest therein.

              

      

       

      
        	
                 
      

              	
                d)

              	
                LLC
      1 will directly or indirectly control 100% of the equity interests in the
      Partnership.

              

      

       

      
        	
                7.

              	
                LLC
      1 will create separate LLC 1 series (individually or collectively, the
      “LLC
      Series”).

              

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                a)

              	
                Each
      Series will have separate rights, powers and duties and will be generally
      treated as a separate entity under Delaware
law.

              

      

       

      
        	
                 
      

              	
                b)

              	
                Each
      Series will represent rights to one of the nine Colombian Properties, as
      defined below. Thus, for example, Series 1 may represent rights to the
      interests in the Santana Block and Series 2 may represent rights to the
      interests in the Guauyaco block. As
such:

              

      

       

      
        	
                 
      

              	
                i.

              	
                Series
      1 will have rights, exclusive to other Series, in the assets in the
      Santana Block and the income derived
therefrom.

              

      

       

      
        	
                 
      

              	
                ii.

              	
                No
      other Series will have a claim of right to the assets of or income derived
      from the Santana block.

              

      

       

      
        	
                 
      

              	
                iii.

              	
                Liability
      of Series 1 will be limited to the assets of the Santana
      block.

              

      

       

      c)           There
will be a total of nine separate LLC Series created under LLC 1, as
follows:

       

      
        	
                 
      

              	
                i.

              	
                Three
      LLC Series will be created, each representing one of the three Colombian
      production properties (the “Colombian
      Production Properties”), as
follows:

              

      

       

      ·           Santana
block – 35% economic interest;

       

      ·           Guayuyaco
block – 35% economic interest; and

       

      ·           Chaza
block – 50% economic interest.

       

      
        	
                 
      

              	
                ii.

              	
                Six
      additional LLC Series will be created, each representing one of the six
      Colombian Exploration Properties (the “Colombian
      Exploration Properties” and together with the Colombian Production
      Properties, the “Colombian
      Properties”) as follows:

              

      

       

      
        	
                 
      

              	
                ·

              	
                Rio
      Magdalena – 100% economic interest (currently farming out 60% of economic
      interest);

              

      

       

      
        	
                 
      

              	
                ·

              	
                Talora
      – 20% economic interest (currently farming out whole
      interest);

              

      

       

      
        	
                 
      

              	
                ·

              	
                Mecaya
      – 15% economic interest (currently farming out whole
      interest);

              

      

       

      
        	
                 
      

              	
                ·

              	
                Azar
      – 40% economic interest (currently farming out 50-80% of economic
      interest);

              

      

       

      
        	
                 
      

              	
                ·

              	
                Putumayo
      West A – Currently under evaluation but if converted to E&E contract,
      portion to be farmed out; and

              

      

       

      
        	
                 
      

              	
                ·

              	
                Putumayo
      West B – Negotiating E&E contract; portion will be farmed
      out.

              

      

       

      
        	
                 
      

              	
                d)

              	
                All
      assets and other rights held in any of the Colombian Properties are the
      result of contracts to which the Partnership is a
  party.

              

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                i.

              	
                The
      Partnership will continue to be the party to such agreements following the
      Restructuring Effective Time.

              

      

       

      
        	
                 
      

              	
                ii.

              	
                No
      assignment or other transfer of any such agreement or rights provided
      thereunder will occur as a result of the
  Restructuring.

              

      

       

      
        	
                 
      

              	
                e)

              	
                Collectively,
      the nine LLC Series will represent ownership of 100% of the interests in
      the Colombian Properties and thus 100% of the assets of the
      Partnership.

              

      

       

      
        	
                8.

              	
                The
      partnership agreement of the Partnership will be amended and restated in
      connection with the Restructuring primarily to cause the Partnership to
      account separately for each of the nine Colombian Properties related to
      each of the nine LLC Series.

              

      

       

      
        	
                9.

              	
                Each
      of the LLC Series will enter into an indemnity agreement (the “Indemnity
      Agreement”).

              

      

       

      
        	
                 
      

              	
                a)

              	
                The
      parties to the Indemnity Agreement will be each of the nine LLC Series,
      AEI LLC, and the Partnership.

              

      

       

      
        	
                 
      

              	
                b)

              	
                Under
      the Indemnity Agreement, each respective LLC Series will indemnify all
      other LLC Series against judgments or liabilities not related to the
      assets held by such other LLC
Series.

              

      

       

      
        	
                 
      

              	
                c)

              	
                Under
      the Indemnity Agreement, each of the nine LLC Series will indemnify the
      Partnership and AEI LLC against losses arising from assets of such LLC
      Series.

              

      

       

      
        	
                10.

              	
                Additionally,
      the Indemnity Agreement will include a
guaranty.

              

      

       

      
        	
                 
      

              	
                a)

              	
                The
      guarantors will be Gran Tierra and CFC 1 as the members of the Series and
      each guarantor will guarantee any obligations of any of the LLC Series
      owned by such guarantor arising from the Indemnity
    Agreement.

              

      

       

      
        	
                11.

              	
                At
      the Restructuring Effective Time, Gran Tierra will transfer its interests
      in the three LLC Series related to the three Colombian Production
      Properties to CFC 1.

              

      

       

      
        	
                 
      

              	
                a)

              	
                The
      transfer will be made as an additional capital contribution by Gran Tierra
      to CFC 1, its wholly-owned foreign
subsidiary.

              

      

       

      
        	
                 
      

              	
                b)

              	
                No
      consideration will be received by Gran Tierra in return for such
      contribution.

              

      

       

      
        	
                 
      

              	
                c)

              	
                The
      end result of such transfers will be that profits derived from the
      Colombian Production Properties will be earned by and attributed to a
      Cayman entity, CFC 1.

              

      

       

      
        	
                 
      

              	
                d)

              	
                Interests
      in the other six series of LLC 1, attributable to the Colombian
      Exploration Properties, will be treated as continuing to be held by Gran
      Tierra.

              

      

       

      
        	
                12.

              	
                At
      the Restructuring Effective Time, Gran Tierra Energy Inc., an Alberta
      corporation (“GT
      CAN”) will transfer all management agreements to which GT CAN is a
      party (but not lease agreements for property and equipment) and all of its
      employees to ULC.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                13.

              	
                Gran
      Tierra will amend its credit facility agreement and related agreements
      (the “Credit
      Facility”) with Standard Bank to terminate certain existing pledges
      created thereunder and to create new pledges granted by newly formed
      entities to properly reflect the post-Restructuring
    structure.

              

      

       

      
        	
                14.

              	
                In
      a separate and subsequent action Gran Tierra may assign the Credit
      Facility to CFC 1.EXECUTION
VERSION

    

    AMENDMENT
NO. 1 TO CREDIT AGREEMENT

     

    This
AMENDMENT NO. 1 TO CREDIT AGREEMENT (this “Amendment”) is
entered into as of January 1, 2009, by and among GRAN TIERRA ENERGY COLOMBIA,
LTD., a Utah limited partnership (Registered No. 2110646-0180) (the “Partnership”), ARGOSY
ENERGY, LLC, a Delaware limited liability company (f/k/a Argosy Energy Corp., a
Delaware corporation) (Registered No. 3234977) (the “GP”), GRAN TIERRA
ENERGY INC., a Nevada corporation (Registered No. C13734-2003) (the “Borrower”), and
STANDARD BANK PLC as the Majority Bank (as defined in the Credit Agreement
referred to below) and the Administrative Agent (as defined in the Credit
Agreement referred to below).

     

    WHEREAS,
the Partnership, the GP, the Borrower, the Majority Bank and the Administrative
Agent are parties to that certain Credit Agreement, dated as of February 22,
2007 (as amended, amended and restated, supplemented or otherwise modified from
time to time, the “Credit
Agreement”);

     

    WHEREAS,
the Borrower is the direct and beneficial owner of all of the issued and
outstanding membership interests of the GP and 99.2857% of the issued and
outstanding partnership interests of the Partnership;

     

    WHEREAS,
pursuant to a corporate reorganization (the “Restructuring”), the
GP converted from a Delaware corporation into a Delaware limited liability
company;

     

    WHEREAS,
pursuant to the Restructuring, the Borrower desires to transfer all of its
interests in the Partnership and the GP to GTE Colombia Holdings LLC, a Delaware
limited liability company (the “LLC”), in exchange
for membership interests in the LLC;

     

    WHEREAS,
pursuant to the Restructuring, the LLC desires to issue all of its limited
liability interests in nine separate series (each a “Series”) pursuant to
the laws of Delaware, each Series to hold 100% of the interest in one of nine
properties directly held by the Partnership, whereby six Series will be retained
by the Borrower and three Series will be contributed to Gran Tierra Energy
Cayman Islands Inc., a newly formed corporation organized as a wholly-owned
Subsidiary of the Borrower under the laws of the Cayman Islands (“Cayman
One”);

     

    WHEREAS,
pursuant to the Restructuring, Cayman One desires to organize Gran Tierra Energy
Cayman Islands II Inc. as a new Subsidiary under the laws of the Cayman Islands
(“Cayman Two”)
and Cayman Two desires to organize Gran Tierra Energy Canada ULC as a new
Subsidiary under the laws of the Province of Alberta, Canada (the “ULC”);
and

     

    WHEREAS,
the Administrative Agent and Majority Bank have agreed to consent to the
consummation of the foregoing transactions (collectively, the “Specified
Transactions”) pursuant to the terms and subject to the conditions set
forth below.

     

    NOW,
THEREFORE, in consideration of the foregoing premises and mutual covenants
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each of the parties hereto hereby
agree as follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Section
1.               Definitions.  Unless
the context otherwise requires, capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement.

     

    Section
2.               Waiver and
Consent.

     

    2.1           Consents.  Subject
to the satisfaction of the conditions precedent set forth in Section 4 of this
Amendment, each of the Administrative Agent and the Majority Bank hereby
consents to the consummation of the Specified Transactions.

     

    2.2           Waivers.  The
Majority Bank hereby waives any Default or Event of Default which arose or may
arise as a result of any failure by the Borrower to meet obligations under
Sections 9.03(a), 9.05, 9.08, 9.13 and 9.15 of the Credit Agreement, and any
term or condition of any other Loan Document, solely to the extent such failure
is due to the consummation of all or any part of the Specified
Transactions.  The Majority Bank hereby additionally waives the
requirements under Section 9.16 of the Credit Agreement that (a) the LLC, Cayman
One, Cayman Two and the ULC become Subsidiary Guarantors and Obligors under the
Credit Agreement and (b) the Borrower and Cayman Two pledge their interests in
the LLC, in each case for so long as Gran Tierra Energy Inc., a Nevada
corporation (Registered No. C13734-2003) remains the Borrower under the Credit
Agreement.  It is hereby acknowledged and agreed that the foregoing
waivers shall not be deemed to be, nor construed as, a waiver of any other
Default or Event of Default that may now be in existence or that may hereafter
occur.

     

    Section
3.               Amendments to Credit
Agreement.

     

    3.1           Amendments to
Preamble.

     

    (a)           The
preamble of the Credit Agreement is hereby amended by deleting the reference to
“GRAN TIERRA ENERGY INC., a corporation organized under the laws of the State of
Nevada (Registered No. E0666052005-8)” and replacing it with “GRAN TIERRA ENERGY
INC., a corporation organized under the laws of the State of Nevada (Registered
No. C13734-2003)”.

     

    (b)           The
preamble of the Credit Agreement is hereby amended by deleting and replacing
references to “T2R OB2” with “T2R 0B2”.

     

    3.2           Amendment to Definition of
“Security Documents”.  Section 1.01 of the Credit Agreement is
hereby amended by amending and restating the definition of “Security Documents”
in its entirety as follows:

     

    “Security Documents”
shall mean, collectively, the Canadian Pledge Agreement, the Colombian Security
Documents, the Collection Account Pledge Agreement, the GP Pledge Agreement, the
Partnership Pledge Agreement and each of the security agreements, pledge
agreements and other instruments now or hereafter delivered to the
Administrative Agent pursuant to the foregoing or otherwise granting a Lien on
any Property of any Person to secure the obligations and liabilities of any
Obligor under any Loan Document, and all other filings required by applicable
law to be filed with respect to the security interests created pursuant to each
of the foregoing documents.

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    3.3           Amendment to Section
9.  Section 9 of the Credit Agreement is hereby amended by
adding the following Section 9.26:

     

    9.26                      Activities of Holding
Companies.  Each of GTE Colombia Holdings LLC, a Delaware
limited liability company (the “LLC”), Gran Tierra
Energy Cayman Islands Inc., a corporation organized under the laws of the Cayman
Islands (“Cayman
One”), Gran Tierra Energy Cayman Islands II Inc., a corporation organized
under the laws of the Cayman Islands (“Cayman Two”), Gran
Tierra Energy Canada ULC, an unlimited liability company organized under the
laws of the Province of Alberta, Canada (the “ULC”), and any entity
directly owning or holding Capital Stock in the GP or the Partnership shall not
(a) conduct, transact or otherwise engage in, or commit to conduct, transact or
otherwise engage in, any material business or operations other than (i) holding
(A) with respect to the LLC only, the Capital Stock of the GP or the Partnership
and their respective Subsidiaries, (B) with respect to Cayman One only, the
Capital Stock of the LLC and Cayman Two, and (C) with respect to Cayman Two
only, the Capital Stock of the ULC, (ii) performing its obligations and
activities under its organizational documents, (iii) with respect to Cayman Two
only, acting as general manager of the LLC and as manager of the series of
limited liability interests in the LLC established pursuant to Section 18-215 of
the Delaware Limited Liability Act, 6 Del. C. § 18-101, et seq., as amended from time
to time, (iv) issuing its own Capital Stock subject to the terms hereof, (v)
preparing reports to its equity holders, (vi) holding board of directors and
equity holders meetings, preparing partnership, corporate or limited liability
company records and other partnership, corporate or limited liability company
activities required to maintain its separate partnership, corporate or limited
liability company structure or to comply with applicable requirements of law or
the terms of its organizational documents, and (vii) activities and assets
incidental to the foregoing clauses (i) through (vi); (b) incur, create, assume
or suffer to exist any Indebtedness or other liabilities or financial
obligations; (c) incur, create, assume or suffer to exist any Lien upon any of
its property, whether now owned or hereafter acquired, other than pursuant to
the Loan Documents; (d) own, lease, manage or otherwise operate any material
properties or assets; or (e) directly own assets constituting an operating
business; provided that the
foregoing shall not prevent (x) the LLC, Cayman One, Cayman Two or the ULC from
complying with any obligation under that certain participation agreement, dated
as of June 22, 2006 (as amended through December 30, 2008, and as further
amended from time to time, so long as each such further amendment is not, taken
as a whole, materially adverse to the Banks, the “Participation
Agreement”), by and among the Partnership, the Borrower and Crosby
Capital LLC, or (y) the ULC from acting as an employer and engaging in and
performing such activities incidental thereto.

     

    Section
4.               Conditions
Precedent.  The waiver referred to in Section 2.1 shall become
effective as of the date first above written, provided that on or
before such date:

     

    (a)           this
Amendment shall have been executed by the Partnership, the GP, the Borrower and
the Majority Bank and counterparts hereof as so executed shall have been
delivered to the Administrative Agent;

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

    (b)           the
LLC shall have executed and delivered to the Administrative Agent a pledge
agreement governed by the laws of the State of New York, dated as of the date
hereof, substantially in the form of the GP Pledge Agreement in effect prior to
the date hereof, granting in favor of the Administrative Agent for the ratable
benefit of the Secured Parties a first-priority security interest in all of the
interests in the GP;

     

    (c)           the
GP and the LLC shall have executed and delivered to the Administrative Agent a
pledge agreement governed by the laws of the State of New York, dated as of the
date hereof, substantially in the form of the Partnership Pledge Agreement in
effect prior to the date hereof, granting in favor of the Administrative Agent
for the ratable benefit of the Secured Parties a first-priority security
interest in all of the interests in the Partnership;

     

    (d)           the
Administrative Agent shall have received, and be reasonably satisfied in form
and substance with, a legal opinion from Cooley Godward Kronish LLP, Delaware
and New York counsel to the GP and the LLC; and

     

    (e)           both
before and immediately after giving effect to this Amendment and the
consummation of the Specified Transactions, all of the representations and
warranties set forth in Section 5 below will
be true and correct.

     

    Section
5.               Miscellaneous

     

    5.1           Representations and
Warranties.  Each Obligor, by signing below, hereby represents
and warrants to the Administrative Agent and the Banks that:

     

    (a)           each
Obligor is duly organized, validly existing and in good standing (if such
concept exists under the laws of its jurisdiction of organization) under the
laws of its jurisdiction of organization;

     

    (b)           the
execution, delivery, and performance of this Amendment and the consummation of
the transactions contemplated hereby (i) are within their limited partnership,
limited liability company or corporate powers, as applicable, (ii) have been
duly authorized by all necessary limited partnership, limited liability company
or corporate action, as applicable, (iii) do not conflict with its
constitutional documents or any applicable law or any of its contractual
obligations except for any such conflict with applicable laws or contractual
obligations that would not have a Material Adverse Effect, and (iv) will not
result in the creation or imposition of any Lien prohibited by the Credit
Agreement;

     

    (c)           no
consent, authorization, or approval of, and except for filings and recordings in
respect of the Liens created pursuant to the Security Documents and except for
customary 8-K filings, no filings and registrations with, any Governmental
Authority, or any securities exchange, is necessary for the execution and
delivery of this Amendment or the performance of its obligations
hereunder;

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

    (d)           each
Obligor has executed and delivered this Amendment, and upon satisfaction of the
conditions set forth in Section 4 above, this Amendment constitutes a legal,
valid, and binding obligation, enforceable against each Obligor in accordance
with its terms, except as such enforceability may be limited by any applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting
creditors’ rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at
law);

     

    (e)           both
before and after giving effect to this Amendment, no Default or Event of Default
(for the avoidance of doubt, other than that contemplated pursuant to Section
2.2 above) has occurred and is continuing or is reasonably expected to occur
immediately following the consummation of the transactions contemplated by this
Amendment; and

     

    (f)           to
the extent not already made above, each of the other representations and
warranties set forth in Section 8 of the Credit Agreement is true and correct in
all material respects as of the date hereof after giving effect to this
Amendment (unless stated to relate solely to an earlier date, in which case such
representation or warranty shall be true and correct as of such earlier
date).

     

    5.2           Expenses.  As
provided in the Credit Agreement, but without limiting any terms or provisions
thereof, each Obligor agrees to pay on demand, upon presentation of a statement
of account, all reasonable and documented out-of-pocket costs and expenses
incurred by the Administrative Agent in connection with the preparation,
negotiation, and execution of this Amendment, including without limitation the
reasonable fees and expenses of the Administrative Agent’s legal counsel,
regardless of whether this Amendment becomes effective in accordance with the
terms hereof.

     

    5.3           Waiver of
Claims.  Each Obligor hereby waives and releases each of the
Secured Parties and their respective directors, officers, employees, attorneys,
affiliates and subsidiaries from any and all claims, offsets, defenses and
counterclaims of which such Obligor is aware that currently exist and can now be
asserted to reduce or eliminate all or any part of the obligation of each
Obligor to make any payments to the Secured Parties as provided in the Loan
Documents, such waiver and release being made with full knowledge and
understanding of the circumstances and effect thereof and after having consulted
legal counsel with respect thereto.  Each of the Partnership and the
GP further agrees and acknowledges that its guarantee obligations under Section
6 of the Credit Agreement shall remain in full force and effect and shall be
unaffected by the terms of this Amendment.

     

    5.4           Credit Agreement
Unaffected.  Each reference to the Credit Agreement in any Loan
Document shall hereafter be construed as a reference to the Credit Agreement as
amended hereby.  Except as herein otherwise specifically provided, all
provisions of the Credit Agreement and the other Loan Documents shall remain in
full force and effect and be unaffected hereby.  This Amendment is a
Loan Document.

     

    5.5           Entire
Agreement.  This Amendment, together with the Credit Agreement
and the other Loan Documents constitute the entire agreement among the parties
with respect to the subject matter hereof, the Credit Agreement and such other
Loan Documents and supersede all prior agreements and understandings, both oral
and written, between the parties with respect to the subject matter
hereof.

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

    

    5.6           Counterparts.  This
Amendment may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument and any of the parties
hereto may execute this Amendment by signing any such counterpart, including by
facsimile or pdf (with an original subsequently delivered).

     

    5.7           Governing
Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH AND BE
GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

     

    5.8           Submission to
Jurisdiction.  EACH PARTY HEREBY IRREVOCABLY CONSENTS TO THE
NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF
MANHATTAN, NEW YORK CITY FOR THE PURPOSE OF ANY LEGAL PROCEEDINGS ARISING OUT
OF, UNDER, OR IN CONNECTION WITH, THIS AMENDMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

     

    5.9           Jury Trial
Waiver.  EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.  EACH PARTY ACKNOWLEDGES AND AGREES
THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION AND
THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER THIS
AMENDMENT.

     

    [Signature
page follows.]

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the
date first above written.

     

    
      
        
          
            	 
      	
                    OBLIGORS

                  
	 
      	 
      
	 
      	
                    GRAN
      TIERRA ENERGY INC.

                  
	 
      	 
      
	 
      	
                    By:

                  	           
      /s/ Martin Eden
	 
      	 
      	
                    Name:
      Martin Eden

                  
	 
      	 
      	
                    Title:   Chief
      Financial Officer

                  
	 
      	 
      
	 
      	
                    ARGOSY
      ENERGY, LLC

                  
	 
      	
                    (f/k/a
      Argosy Energy Corp.)

                  
	 
      	 
      
	 
      	
                    By:

                  	
                    Gran
      Tierra Energy Cayman Islands II, Inc.,

                  
	 
      	 
      	
                    its
      Manager

                  

          

        

      

    

    

    
      
        
          	 
      	
                  By:

                	           
      /s/ Martin Eden
	 
      	 
      	
                  Name:
      Martin Eden

                
	 
      	 
      	
                  Title:   Chief
      Financial Officer

                
	 
      	 
      

        

      

    

    

    
      
        	 
      	
                GRAN
      TIERRA ENERGY COLOMBIA, LTD.

              
	 
      	 
      
	 
      	
                By:

              	
                Argosy
      Energy, LLC (f/k/a Argosy Energy

                Corp.),
      its General Partner

              

      

    

    

    
      
        	 
      	
                By:

              	
                Gran
      Tierra Energy Cayman Islands II,

                Inc.,
      its Manager

              

      

    

    

    
      
        
          	 
      	
                  By:

                	           
      /s/ Martin Eden
	 
      	 
      	
                  Name:
      Martin Eden

                
	 
      	 
      	
                  Title:   Chief
      Financial Officer

                
	 
      	 
      	 
      

        

      

    

     

    
      Amendment
No. 1 to Credit Agreement

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                	 
      	
                        MAJORITY BANK

                      
	 
      	 
      
	 
      	
                        STANDARD
      BANK PLC

                      
	 
      	 
      
	 
      	
                        By:

                      	            /s/
      Martin Revoredo
	 
      	 
      	
                        Name:
      Martin Revoredo

                      
	 
      	 
      	
                        Title:   Senior
      Vice President

                      
	 
      	 
      
	 
      	
                        By:

                      	           
      /s/ Roderick L. Fraser
	 
      	 
      	
                        Name:
      Roderick L. Fraser

                      
	 
      	 
      	
                        Title:  
      Managing Director, Global Head of Energy
Finance

                      

              

            

          

        

      

    

    

    
      
        
          
            
              
                	 
      	
                        ADMINISTRATIVE AGENT

                      
	 
      	 
      
	 
      	
                        STANDARD
      BANK PLC

                      
	 
      	 
      
	 
      	
                        By:

                      	            /s/
      Martin Revoredo
	 
      	 
      	
                              
                          Name:
      Martin Revoredo

                        

                      
	 
      	 
      	
                              
                          Title:   Senior
      Vice President

                        

                      
	 
      	 
      
	 
      	
                        By:

                      	           
      /s/ Roderick L. Fraser
	 
      	 
      	
                              
                          Name:
      Roderick L. Fraser

                        

                      
	 
      	 
      	
                              
                          Title:  
      Managing Director, Global Head of Energy
    Finance

                        

                      
	 
      

              

            

          

        

      

    

     

    
      Amendment
No. 1 to Credit Agreement

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