EXECUTIVE EMPLOYMENT AGREEMENT

Exhibit 10.61

EXECUTIVE EMPLOYMENT AGREEMENT

Executive Employment Agreement among Gran Tierra Argentina S.A. (“GTASA”), an Argentine company, a wholly-owned subsidiary of Gran Tierra (defined below), Gran Tierra Energy Inc., a Nevada corporation (“Gran Tierra”) and Xxxxxx Orunesu (hereinafter called the “Executive”, collectively with GTASA and Gran Tierra, the “Parties”). GTSASA and Gran Tierra are sometimes referred to herein as the “Company.”

RECITALS:

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

B. GTASA and Gran Tierra wish to secure the services of the Executive and to ensure that the Executive remains President of GTASA

C. The Executive is currently an employee of GTASA pursuant to an employment agreement between the Executive and GTASA dated March 1, 2005, as amended (the “Prior Agreement”).

D. The Parties wish to set forth their entire understanding and agreement with respect to the subject matter hereof and replace the Prior Agreement in its entirety with this Executive Employment Agreement (the “Agreement”).

Therefore, the Parties agree as follows:

ARTICLE 1

DUTIES AND RESPONSIBILITIES

1.1 Position

GTASA confirms the appointment of the Executive to the position of President of GTASA. The Executive shall perform the duties and responsibilities as well as those duties reasonably assigned to the Executive by the Board of Directors of Gran Tierra (the “Board”). The parties agree that the relationship between GTASA 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.

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1.3 Reassignment

The Executive shall not be reassigned to another position within GTASA itself, or to a position within another subsidiary or Gran Tierra, or other affiliated or related corporate entity (a “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 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 fly business class only for international flights and shall use economy for domestic travel. The Executive will be entitled to choose suitable accommodations when traveling on GTASA or Gran Tierra business.

ARTICLE 2

TERM OF EMPLOYMENT

The Executive’s employment with GTASA is for no specified duration and constitutes at-will employment. The Executive’s employment may be terminated at any time by either GTASA or Executive, subject to the provisions of Article 9.

ARTICLE 3

BASE SALARY

The Executive will be paid an annual salary in an amount determined by the Board, subject to applicable statutory deductions (the “Base Salary”). The Executive’s Base Salary will be payable in accordance with GTASA 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 (the “Bonus”) as determined by the Board from time to time.

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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.

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 Gran Tierra for GTASA employees and for its executives. GTASA 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 GTASA and Gran Tierra. 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 GTASA for whatever reason, GTASA will compensate the Executive for any accrued but unused vacation entitlement based upon the Executive’s then current Base Salary.

ARTICLE 7

STOCK OPTIONS

Gran Tierra will provide the Executive with the right to participate in stock option plans and/or incentive award plans maintained by Gran Tierra and approved by the Board.

ARTICLE 8

PERQUISITES AND EXPENSES

GTASA recognizes that the Executive will incur expenses in the performance of the Executive’s duties. GTASA 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 GTASA may be terminated, without GTASA 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:

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(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 GTASA and Gran Tierra. 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 GTASA. GTASA may, at its discretion, waive in whole or in part such notice with payment in lieu to the Executive;

(b) Cause

 "Cause" is defined as any of the following:

(a) conviction of, or plea of nolo contendere to, a felony;

(b) participation in a fraud against the Company;

(c) participation in an act of dishonesty against the Company intended to result in your personal enrichment;

(d) willful material breach of the Company's written policies;

(e) intentional significant damage to the Company's property by you;

(f) material breach of this Agreement; or

(g) conduct by you that, in the good faith and reasonable determination of the Board, demonstrates gross unfitness to serve provided that in such event, the Company shall provide notice to you describing the nature of the gross unfitness and you shall thereafter have ten (10) days to cure such gross unfitness if such gross unfitness is capable of being cured.

The Partnership may not terminate your employment for Cause unless and until you receive a copy of a resolution duly adopted by the affirmative vote of at least a majority of the Board of Directors of Gran Tierra (the "Board") finding that in the good faith opinion of the Board, that "Cause" exists and specifying the particulars thereof in reasonable detail.

9.2 Termination by GTASA without Cause

GTASA may terminate the Executive’s employment without Cause at any time by providing the Executive with a separation package (the “Separation Package”) equal to 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.

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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. 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. Notwithstanding the foregoing, Executive may terminate his employment for Good Reason so long as Executive tenders his resignation to GTASA within thirty (30) days after the occurrence of the event that forms the basis for the resignation for Good Reason; provided, however, that Executive must provide written notice to GTASA and Gran Tierra describing the nature of the event that Executive believes forms the basis for the resignation for Good Reason, and GTASA and Gran Tierra shall thereafter have ten (10) days to cure such event.

“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 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;

(b) a reduction by the Company of the Executive’s Base Salary except to the extent that the annual base salaries of all other executive officers of the Company are similarly reduced 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 except that an award of annual performance bonuses by the Company’s Compensation Committee (and approved by the Board of Directors) are discretionary and in no instance shall be considered adverse to Executive if such performance bonus is reduced from a prior year or if an annual performance bonus is not paid;

(c) a Change in Control (as defined below) of the Company occurs; or

(d) any breach by the Company of any material provision of this Agreement.

A “Change in Control” is defined as:

(a) a dissolution, liquidation or sale of all or substantially all of the assets of the Company;

(b) a merger or consolidation in which the Company is not the surviving corporation;

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(c) a reverse merger in which the Company is the surviving corporation but the shares of the Company’s common stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise; or

(d) the acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of the Exchange Act, or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or any affiliate of the Company) of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the Company representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of directors.

ARTICLE 10

DIRECTORS/OFFICERS LIABILITY

10.1 Indemnity

Gran Tierra shall provide to the Executive indemnification in accordance with the Indemnification Agreement entered into between Gran Tierra and the Executive.

10.2 Insurance

(a) Gran Tierra shall purchase and maintain, throughout the period during which the Executive acts as a director or officer of Gran Tierra 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 Gran Tierra 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 Gran Tierra 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 Gran Tierra for the benefit of the Executive and the Executive’s heirs, executors, administrators and other legal representatives, Gran Tierra 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.

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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 in accordance with such Indemnification Agreement and the provisions of this Agreement 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 GTASA 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 Gran Tierra 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 GTASA that such knowledge and experience shall be used solely and exclusively in the furtherance of the business interests of Gran Tierra and its Member Companies and not in any manner detrimental to them. The Executive therefore agrees that so long as he is employed by GTASA pursuant to this Agreement he shall not engage in any practice or business in competition with the business of Gran Tierra or any of its Member Companies.

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 Gran Tierra 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 Gran Tierra 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 GTASA 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 Gran Tierra 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 GTASA, the Executive shall not be prohibited from obtaining employment with or otherwise forming or participating in a business competitive to the business of Gran Tierra and its Member Companies after termination of this Agreement and the Executive’s employment with GTASA.

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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. Notwithstanding the foregoing, GTASA may assign this agreement to Gran Tierra or a Member Company, without the consent of the Executive.

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.

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.

000, 000-00xx Xxxxxx X.X.

Xxxxxxx, Xxxxxxx, Xxxxxx X0X 0X0

Fax: (000) 000-0000

Attn: Chief Executive Officer

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ARTICLE 16

WITHHOLDING

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

ARTICLE 17

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.

ARTICLE 18

REPLACEMENT OF PRIOR AGREEMENT

The parties acknowledge that the Prior Agreement is hereby replaced in its entirety by this Agreement. Pursuant to Section 8.1 of the Prior Agreement, this Agreement shall be effective, and the Prior Agreement shall be terminated, upon the execution of this Agreement by each of the parties to the Prior Agreement. Upon such execution, all provisions of the Prior Agreement are hereby superseded in their entirety and replaced herein and shall have no further force or effect.

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In Witness Whereof the parties hereto have executed this Agreement as of the date set forth below, with an effective date as of June 17, 2008.

		Gran Tierra Argentina S.A., an Argentine corporation
		By:	/s/ Xxxx Xxxxxxxx
		Name:	Xxxx Xxxxxxxx
		Title:	President
		Date:	17 June 08
		Gran Tierra Energy Inc., a Nevada corporation
		By:	/s/ Xxxx Xxxxxxxx
		Name:	Xxxx Xxxxxxxx
		Title:	President
		Date:	17 June 08
/s/ Xxxxx Xxxxxxx		/s/ Xxxxxx Orunesu
Witness		Xxxxxx Orunesu
		Date:	17 June 2008

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Schedule A

Executive’s duties

Duties and Responsibilities for President

· President of Gran Tierra Energy Argentina shall report directly to the President and CEO of Gran Tierra Energy Inc.

· Strategic leadership – formulate and recommend strategies to the President and CEO to maximize shareholder value and long-term success of the Company in Argentina; implement capital and operating plans; identify principal risks to the Company’s business and take appropriate steps to manage these risks; keep the President and CEO fully informed on all significant operational, financial and other matters relevant to the Company.

· Technical Leadership – ensure a rigorous and disciplined approach to technical work of the Company with regard to geology geophysics and related disciplines; encourage technical innovation, imagination and pragmatism.

· Financial Leadership – develop annual capital commitment and expenditure budgets for approval by the President and CEO; develop annual operating forecasts; authorize the commitment of funds sanctioned by the President and CEO; authorize the commitment of contracts, transactions and arrangements in the ordinary course of business; take reasonable steps to ensure the Company’s assets are adequately safeguarded.

· Administrative Leadership – develop and maintain a sound and effective organizational structure; ensure all members of the organization have clear responsibilities.

· Public Leadership – maintain effective communications and appropriate relationships with host government, ministry, industry associates, communities and other in-country stakeholders; manage interactions between the Company and the public in Argentina.

· Compliance Leadership – establish effective control and coordination mechanisms for all operations arid activities of the Company in Argentina in coordination and support with those controls and procedures established by Corporate in Calgary; take reasonable steps to ensure the safe, efficient operation of the Company and its employees/workers; ensure all operations and activities are in compliance with laws, regulations and the Company’s code of business conduct and ethics and other policies and practices approved by Corporate; xxxxxx a high performance corporate culture that promotes ethical practices and encourages individual and corporate integrity and responsibility.

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