Exhibit 10.61
EXECUTIVE EMPLOYMENT
AGREEMENT
GRAN TIERRA
ENERGY INC. , an Alberta
corporation (“ GTEI ”) and Gran Tierra Energy Inc. , a
Nevada corporation (“ Gran Tierra ”)
(GTEI and Gran Tierra are
collectively referred to herein as, the “ Company
”)
- and -
MAX HSU
WEI , an individual
ordinarily resident in the City of Calgary in the Province of
Alberta
(the “ Executive
”)
(collectively referred to as the
“ Parties ”)
RECITALS:
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The Executive
has specialized knowledge and valuable skills and experience which
are critical to the management and success of the
business.
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The Company
wishes to secure the services of the Executive and to ensure that
the Executive remains Vice-President, Operations, of the
business.
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The Executive
is currently an employee of the Company pursuant to an employment
agreement between the Executive and the Company dated April 29,
2005 (the “ Prior Agreement
”).
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The Parties
wish to set forth their entire understanding and agreement with
respect to the subject matter herein and replace the Prior
Agreement in its entirety with this Executive Employment Agreement
(the “ Agreement ”).
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THEREFORE , the Parties agree as follows:
ARTICLE 1
DUTIES AND
RESPONSIBILITIES
The Company
confirms the appointment of the Executive to the position of
Vice-President, Operations. The Executive will undertake
those duties and responsibilities set out in Schedule
“A” to this Agreement as well as those duties
reasonably assigned to the Executive by the Board of Directors of
the Company (the “ Board ”). The
Executive will report to the President and Chief Executive
Officer. The parties agree that the relationship between
the Company and the Executive created by this Agreement is that of
employer and employee.
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.
The Company
shall not reassign the Executive to another position within the
Company itself, or to a position within a subsidiary, affiliated or
related corporate entity (“ Member Company ” or
“ Member Companies ”) or alter the duties,
responsibilities, title, or reporting lines of the Executive or
change the location of the Executive’s employment unless the
Executive agrees to such reassignment or alteration.
The Executive
shall be employed at the Company’s location in Calgary,
Alberta. The Executive shall be available for such business related
travel as may be required for the purposes of carrying out the
Executive’s duties and responsibilities. The Executive shall
be entitled to 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
Company business.
ARTICLE 2
TERM OF EMPLOYMENT
The
Executive’s employment with the Company is for no specified
duration and constitutes at-will employment. The
Executive’s employment may be terminated at any time by
either of the Parties, 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 Company practices and procedures
as they may exist from time to time. Base Salary will be reviewed
and may be increased on an annual basis by the Board, with input
from the Executive.
ARTICLE 4
BONUS
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.
The Bonus shall
be payable within sixty (60) days after the end of the fiscal year
(but in no event later than March 15 of such following 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 the Company for its
employees and for its executive officers specifically. During a
leave of absence for disability, the Company will continue to pay
the Executive’s Base Salary (less any amounts paid pursuant
to a short term disability insurance policy) until such time as the
Executive begins to receive long-term disability insurance
benefits.
ARTICLE 6
VACATION
The Executive
will be entitled to five weeks vacation per year. Payment of all
vacation pay will be at Base Salary. The Executive will arrange
vacation time to suit the essential business needs of the Company.
Unused vacation entitlement will be carried over into the following
calendar year to a maximum entitlement of eight weeks in any one
year. On leaving the employment of the Company for whatever reason,
the Company will compensate the Executive for any accrued but
unused vacation entitlement based upon the Executive’s then
current Base Salary.
ARTICLE 7
STOCK OPTIONS
The Company
will provide the Executive with the right to participate in stock
option plans and/or incentive award plans approved by the
Board.
ARTICLE 8
PERQUISITES AND
EXPENSES
The Company
recognizes that the Executive will incur expenses in the
performance of the Executive’s duties. The Company shall
reimburse the Executive for any reasonable out of pocket expenses
incurred in the course of employment. To the extent that
any expense reimbursements payable pursuant to this Agreement are
subject to the provisions of Section 409A of the Internal Revenue
Code of 1986, as amended (the “ Code ”), any
such reimbursements payable pursuant to this Agreement shall be
paid no later than December 31 of the year following the year in
which the expense was incurred, the amount of expenses reimbursed
in one year shall not affect the amount eligible for reimbursement
in any subsequent year, and the right to reimbursement under this
Agreement will not be subject to liquidation or exchange for
another benefit.
ARTICLE 9
TERMINATION OF
EMPLOYMENT
9.1 Termination
Without Notice
This Agreement
and the Executive’s employment with the Company may be
terminated, without the Company being obligated to provide the
Executive with advance notice of termination or pay in lieu of such
notice, whether under contract, statute, common law or otherwise,
in the following circumstances:
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 sixty (60) days’ advance
written notice to the Company. The Executive will not be
entitled to receive any further compensation or benefits whatsoever
other than those which have accrued up to the Executive’s
last day of active service with the Company. The Company may, at
its discretion, waive in whole or in part such notice by paying the
Executive, following his last day of active service, his Base
Salary during the balance of such sixty (60) day period in lieu to
the Executive on the Company’s regular payroll
dates. This payment of Base Salary in lieu of notice is
intended to be exempt from Code Section 409A under Treasury
Regulation Section 1.409A-1(b)(4).
"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 Company 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 the Company
("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 the Company without Cause
The Company may
terminate the Executive’s employment without Cause at any
time. If such termination constitues a “separation
from service” (as defined under Treasury Regulation Section
1.409A-1(h)), and provided the Executive executes and allows to
become effective the Company’s standard form of release of
claims within thirty (30) days following the separation from
service, the Company will pay the Executive cash severance (the
“ Separation Package ”) equal to two
years’ Total Cash Compensation in a lump sum on the date that
is thirty (30) days after the separation from service.
“Total
Cash Compensation” is defined as the annualiz