SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. )
Filed by the Registrant
x Filed by a Party other than the Registrant ¨Check the appropriate box:
| Preliminary Proxy Statement | ||
| ¨ | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | |
| Definitive Proxy Statement | ||
| ¨ | Definitive Additional Materials | |
| ¨ | Soliciting Material under §240.14a-12 | |
Gran Tierra Energy Inc.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
| x | No fee required. | |||
| ¨ | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. | |||
| (1) | Title of each class of securities to which transaction applies: | |||
| (2) | Aggregate number of securities to which transaction applies: | |||
| (3) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): | |||
| (4) | Proposed maximum aggregate value of transaction: | |||
| (5) | Total fee paid: | |||
| ¨ | Fee paid previously with preliminary materials. | |||
| ¨ | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. | |||
| (1) | Amount Previously Paid: | |||
| (2) | Form, Schedule or Registration Statement No.: | |||
| (3) | Filing Party: | |||
| (4) | Date Filed: | |||
GRAN TIERRA ENERGY INC.
900, 520-3 Avenue S.W.
Calgary, Alberta, T2R 0V2 Canada
(403) 265-3221
NOTICE OF MEETING
ANNUAL MEETING OF THE STOCKHOLDERS
| Date: | Wednesday, May 2, 2018 |
| Time: | 11:00 a.m. (Mountain Time) |
| Place: | Centennial Place, 3rd Floor, West Tower, 250 - 5 Street SW, Calgary, Alberta, Canada T2P 0R4 |
The business of the meeting will be held on Thursday, June 23, 2016, at 10:00 a.m. (Eastern time) at the Andaz Wall Street Hotel, 75 Wall Street, New York, NY, 10005 for the following purposes:
| 1. |
| 2. |
| 3. | Approve, on an advisory basis, the compensation of Gran Tierra’s named executive officers as disclosed in |
| 4. |
These items of business are more fully described in the proxy statement accompanying this Notice.
This notice and the attached proxy statement are first being mailed to our shareholdersstockholders beginning on or about May 11, 2016.March 21, 2018. The record date for the annual meeting is April 27, 2016.March 12, 2018. Only stockholders of record at the close of business on that date may vote at the meeting or any adjournment thereof.
This year, we are using the “Notice and Access” method of providing proxy materials to our stockholders. We believe this process will provide our stockholders with a convenient way to access the proxy materials and vote, while allowing us to lower the costs of printing and distributing the proxy materials and reduce the environmental impact of our meeting. We will mail to most of our stockholders a Notice of Internet Availability of Proxy Materials (the “Notice”) in lieu of a paper copy of our proxy materials. Stockholders receiving the Notice may review the proxy materials online or request a paper copy by following the instructions set forth in the Notice.
Please submit your proxy or voting instructions on the Internet or by telephone promptly by following the instructions about how to view the proxy materials on your Notice of Internet Availability of Proxy Materials so that your shares can be voted, regardless of whether you expect to attend the annual meeting. If you received your proxy materials by mail, you may submit your proxy or voting instructions on the Internet or by telephone, or you may submit your proxy by marking, dating, signing and returning the enclosed proxy/confidential voting instruction card. If you attend the annual meeting, you may withdraw your proxy and vote in person.
By Orderorder of the Board of Directors
/s/ Gary S. Guidry
Gary S. Guidry
President and Chief Executive Officer
Calgary, Alberta, Canada
March 21, 2018
PROXY STATEMENT TABLE OF CONTENTS
| Proxy Statement Summary | 1 |
TO OUR STOCKHOLDERS,
We invite you to attend the Annual Meeting of Gran Tierra Energy Inc., (“Gran Tierra” or the “Company”) which will be held at Centennial Place, 3rd Floor, West Tower, 250 - 5 Street SW, Calgary, Alberta, Canada T2P 0R4 on May 2, 2018 at 11:00 a.m. Mountain Time.
The attached Notice of Annual Meeting of Stockholders and Proxy Statement describes the business to be conducted at the Annual Meeting. Whether or not you plan to attend the Annual Meeting of Stockholders, we urge you to submit your vote via the internet, telephone or mail.
After successfully transforming our portfolio and the Company in 2015 and 2016, our focus on execution in 2017 delivered strong financial performance. With our high netback production, low base production declines, an expanded drilling inventory and a large resource base, we demonstrated in 2017 that Gran Tierra has created a sustainable business model which we expect to be fully funded by forecasted cash from operating activities in 2018.
During 2017, our robust portfolio delivered:
| ● | Increased average Colombia only production in the fourth quarter of 2017 to 34,477 BOEPD, 14% higher than 30,258 BOEPD in the fourth quarter of 2016 and 53% higher than the second quarter of 2015, when the current senior management team started at Gran Tierra; |
| ● | Growth of 18% in Proved plus Probable reserves in Colombia, 20% in reserves per share, 27% in total net present value to $2.5 billion and 30% in net asset value per share to $5.69 per share; |
| ● | Increased Colombia unrisked mean prospective resources to 1,462 MMBOE, with 822 MMBOE primarily in the Putumayo regional carbonate play; |
| ● | With our large resource base, we plan to drill 30 to 35 exploration wells over the next three years, which are all expected to be funded by cash from operating activities. |
I encourage you to read our 2017 Annual Report for additional information. Following the formal portion of the Annual Meeting, management will review Gran Tierra’s operational and financial performance during 2017 and provide an outlook on priorities for 2018 and beyond. You will also have an opportunity to ask questions and to meet the directors and executives.
On behalf of our Board of Directors and the team at Gran Tierra, I want to thank all of our stakeholders for their continued support. We believe that our focused strategy is delivering results on several fronts and that Gran Tierra is well positioned for an exciting year of growth in 2018 and beyond as we continue to efficiently create value in the multi-horizon, proven hydrocarbon producing basins of Colombia.
Sincerely,
/s/ Gary S. Guidry
Gary S. Guidry
President and Chief Executive Officer
March 21, 2018
This summary highlights information contained elsewhere within this proxy statement. You should read the entire proxy statement carefully and consider all information before voting. Page references are supplied to help you find further information in this proxy statement. This summary does not contain all of the information you should consider, and we encourage you to read the entire proxy statement before voting.
References to “we”, “us”, “our”, “Gran Tierra” or the “Company” are to Gran Tierra Energy Inc.
Important Notice Regarding the Availability of Materials for the 2018 Annual Meeting of Shareholders to be Held on May 2, 2018: The proxy statement and our Annual Report for the fiscal year ended December 31, 2017 are available free of charge at http://www.edocumentview.com/GTE
2018 Annual Meeting of Stockholders
| Date: | May 2, 2018 |
| Time: | 11:00 a.m. (Mountain Time) |
| Place: | Centennial Place, 3rd Floor, West Tower, 250 - 5 Street SW, Calgary, Alberta, Canada T2P 0R4 |
| Record Date: | March 12, 2018 |
Voting Matters And Board Recommendations
| Voting Matter | Board Vote Recommendation |
Proposal The Board and the Nominating and Corporate Governance Committee believe that each of the director nominees possesses the necessary qualifications and skills to provide effective oversight of the business and quality advice and counsel to our management team. | FOR EACH NOMINEE |
Proposal 2: Ratification of Selection of Independent Auditors (page 34) The Board and the Audit Committee believe that the retention of KPMG LLP to serve as our independent registered public accounting firm for the fiscal year ending December 31, 2018 is in the best interests of the Company and its stockholders. As a matter of good corporate governance, stockholders are being asked to ratify the Audit Committee’s selection of the independent registered public accounting firm. | FOR |
Proposal 3: Advisory Vote to Approve Named Executive Officer Compensation (page 38) The Company seeks a non-binding advisory vote from its stockholders to approve the compensation of its named executive officers as described in the Compensation Discussion and Analysis section beginning on page 43 and the Compensation Tables section beginning on page 55. Our executive compensation program reflects our philosophy of aligning executive compensation with the interests of our stockholders and a commitment to pay for performance. | FOR |
Director Nominees
The following table provides summary information about each director nominee. See pages 12 to 19 for more information.
| Director Nominee | Director Since | Age | Committees |
| Peter J. Dey | 2015 | 77 | Nominating and Corporate Governance Committee Compensation Committee |
| Gary S. Guidry President and CEO | 2015 | 62 | |
| Evan Hazell | 2015 | 59 | Health, Safety & Environment Committee Reserves Committee |
| Robert B. Hodgins | 2015 | 66 | Board Chairman Audit Committee Compensation Committee Nominating and Corporate Governance Committee |
| Ronald W. Royal | 2015 | 69 | Audit Committee Health, Safety & Environment Committee Reserves Committee |
| Sondra Scott | 2017 | 51 | Nominating and Corporate Governance Committee Health, Safety & Environment Committee Reserves Committee |
| David P. Smith | 2015 | 59 | Audit Committee Health, Safety & Environment Committee |
| Brooke Wade | 2015 | 64 | Compensation Committee Nominating and Corporate Governance Committee Reserves Committee |
Corporate Governance
We are committed to good corporate governance practices, which promote the long-term interests of our stockholders and strengthens our Board and management accountability.
Highlights of our corporate governance practices include the following:
| Independent Chairman of the Board | Policy prohibiting speculative trading of the Company’s stock |
| Annual elections of the entire Board | Clawback policy |
| Majority voting for directors with resignation policy | Stockholders may call special meetings of stockholders |
| 100% independent Committee members | No stockholder rights (“poison pill”) or similar plan |
| Annual self-evaluation of the Board | Regular executive sessions of independent directors |
| Stock ownership guidelines for directors and officers | Stockholders have the right to fill director vacancies caused by director removal |
| No Tax Gross-Up provisions in any new executive agreements (currently only applies to Chief Executive Officer in order to be equalized to Canadian colleagues) |
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Executive compensation highlights
Our compensation philosophy and programs are based on the following core principles:
| ● | attract and retain highly capable individuals and offer competitive compensation opportunities, |
| ● | pay for performance, and |
| ● | align the interests of management with our stockholders. |
Our equity compensation program is designed to be aligned with the interests of our stockholders and focus on pay-for-performance. The majority of 2017 executive compensation is considered to be “at risk” because its value is based on specific performance criteria and payout is not guaranteed. In 2017, 80% of the value of equity awards granted to the Named Executive Officers (“NEOs”) consisted of performance share units (“PSUs”) and 20% consisted of stock options. Base salaries for NEOs remained unchanged in 2017 from 2016 levels.
The following shows the breakdown of 2017 target total direct compensation opportunity for our Chief Executive Officer and Chief Financial Officer consisting of long-term equity awards, annual cash bonus and fixed base salary.
Further discussion of how our Company performance in 2017 impacted our Short-Term Incentive (“STIP”) and Long-Term Incentive Plan (“LTIP”) payouts can be found on pages 48 and 51 respectively.
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Why am I receiving these materials?
We are sending you these proxy materials because the Board of Directors (the “Board”) of Gran Tierra Energy Inc., a Nevada CorporationDelaware corporation (“Gran Tierra” or the “Company”), is soliciting your proxy to vote at the 20162018 annual meeting of stockholders, including at any adjournments or postponements of the annual meeting. You are invited to attend the annual meeting to vote on the proposals described in this proxy statement. However, you do not need to attend the annual meeting to vote your shares. Instead, if you are a stockholder of record of our common stock, you may simply complete, sign and return the proxy card, or follow the instructions below to submit your proxy over the telephone or through the internet. See “How do I vote” below for further information on how to vote, including if you hold our common stock through a broker in “street name” or hold exchangeable shares.
Pursuant to rules adopted by the Securities and Exchange Commission (the “SEC”), we have elected to provide access to our proxy materials over the internet. We are sending to our stockholders of record the proxy materials, including this proxy statement and an annual report, or a Notice Regarding the Availability of Proxy Materials (the “Notice”). We intend that our stockholders who hold their stock in “street name” will receive a Notice from their broker, bank or other agent in which they hold the stock in “street name,” unless they have specified otherwise. All stockholders will have the ability to access the proxy materials on the website referred to in the Notice or request to receive a printed set of the proxy materials. Instructions on how to access the proxy materials over the internet or to request a printed copy may be found in the Notice.
We intend to mail the proxy materials and Notice beginning on or about May 11, 2016,March 21, 2018, to all stockholders of record entitled to vote at the annual meeting. We expect that the Notice will be sent to stockholders who hold their stock in “street name” on or about this same date.
How do I attend the annual meeting?
The meeting will be held on Thursday, June 23, 2016,Wednesday, May 2, 2018, at 10:11:00 a.m. (Eastern(Mountain time) at the Andaz WallCentennial Place, 3rd Floor, West Tower, 250 - 5 Street Hotel, 75 Wall Street, New York, NY, 10005, USA.SW, Calgary, Alberta, Canada T2P 0R4. Directions to the annual meeting may be found at http://www.grantierra.com.www.grantierra.com/investor- relations/2018-annual-meeting.html. Information on how to vote in person at the annual meeting is discussed below.
Who can vote at the annual meeting?
Only stockholders of record at the close of business on April 27, 2016,March 12, 2018, will be entitled to vote at the annual meeting. On this record date, there were [____]385,394,642 shares of common stock outstanding and entitled to vote, one share of Special A Voting Stock, and one share of Special B Voting Stock. On the record date, the one share of Special A Voting Stock was entitled to [____]1,688,889 votes, which equals the number of shares of common stock issuable upon exchange of exchangeable shares of Gran Tierra Goldstrike Inc. that were issued in connection with the transaction between the former stockholders of Gran Tierra Energy Inc., an Alberta corporation, (“Gran Tierra Canada”), and Goldstrike, Inc. (the “Goldstrike Exchangeable Shares”). On the record date, the one share of Special B Voting Stock was entitled to [____]4,219,176 votes, which equals the number of shares of common stock issuable upon exchange of exchangeable shares of Gran Tierra Exchangeco Inc. that were issued in connection with the transaction between the former stockholders of Solana Resources Limited, an Alberta corporation (“Solana”), and Gran Tierra (the “Solana Exchangeable Shares”Shares,” and together with the Goldstrike Exchangeable Shares, the “Exchangeable Shares”).
Stockholders of Record: Shares Registered in Your Name
If at the close of business on April 27, 2016,March 12, 2018, your shares were registered directly in your name with Gran Tierra’s transfer agent, Computershare Investor Services, then you are a stockholder of record. As a stockholder of record, you may vote in person at the annual meeting or vote by proxy. Whether or not you plan to attend the annual meeting, we urge you to fill out and return the proxy or vote by proxy by telephone or on the internet as instructed below to ensure your vote is counted.
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Beneficial Owner: Shares Registered in the Name of a Broker or Bank
If at the close of business on April 27, 2016,March 12, 2018, your shares were held, not in your name, but rather in an account at a brokerage firm, bank, dealer, or other similar organization, then you are the beneficial owner of shares held in “street name” and the Notice, and/or these proxy materials if you have received them, are being forwarded to you by that organization. The organization holding your account is considered to be the stockholder of record for purposes of voting at the annual meeting. As a beneficial owner, you have the right to direct your broker or other agent regarding how to vote the shares in your account. You are also invited to attend the annual meeting. However, since you are not the stockholder of record, you may not vote your shares in person at the annual meeting unless you request and obtain a valid proxy from your broker or other agent.
Stockholders Holding Exchangeable Shares
Holders of Goldstrike Exchangeable Shares are receiving these proxy materials which relate solely to the annual meeting of Gran Tierra and are being delivered in accordance with the provisions of the Goldstrike Exchangeable Shares and the Voting Exchange and Support Agreement dated November 10, 2005, (the “Goldstrike Voting Exchange Agreement”) among Goldstrike Inc., 1203647 Alberta Inc., Gran Tierra Goldstrike Inc. and Olympia Trust Company (the “Goldstrike Trustee”). The Goldstrike Exchangeable Shares are the economic equivalent to the shares of common stock of Gran Tierra. In accordance with the Goldstrike Voting Exchange Agreement, holders of Goldstrike Exchangeable Shares are entitled to instruct the Goldstrike Trustee as to how to vote their Goldstrike Exchangeable Shares. The Goldstrike Trustee holds the one outstanding share of our Special A Voting Stock, which is entitled to as many votes as there are outstanding Goldstrike Exchangeable Shares on the record date, and may only vote the one share of Special A Voting Stock as directed by the holders of Goldstrike Exchangeable Shares. Holders of Goldstrike Exchangeable Shares who do not hold their Goldstrike Exchangeable Shares in their own name are not entitled to instruct the Goldstrike Trustee as to how to exercise voting rights at the annual meeting. Only holders of Goldstrike Exchangeable Shares whose names appear on the records of Gran Tierra Goldstrike Inc. as the registered holders of Goldstrike Exchangeable Shares are entitled to instruct the Goldstrike Trustee as to how to exercise voting rights in respect of their Goldstrike Exchangeable Shares at the annual meeting. Holders of Goldstrike Exchangeable Shares may also obtain a proxy from the Goldstrike Trustee to vote their Goldstrike Exchangeable Shares at the annual meeting. Holders of Goldstrike Exchangeable Shares should follow the instructions sent to them by the Goldstrike Trustee in order to exercise their voting rights.
Holders of Solana Exchangeable Shares are receiving these proxy materials which relate solely to the annual meeting of Gran Tierra and are being delivered in accordance with the provisions of the Solana Exchangeable Shares and the Voting and Exchange Trust Agreement dated November 14, 2008, (the “Solana Voting Exchange Agreement”) among Gran Tierra, Gran Tierra Exchangeco Inc. and Computershare Trust Company of Canada (the “Solana Trustee”). The Solana Exchangeable Shares are the economic equivalent to the shares of common stock of Gran Tierra. In accordance with the Solana Voting Exchange Agreement, holders of Solana Exchangeable Shares are entitled to instruct the Solana Trustee as to how to vote their Solana Exchangeable Shares. The Solana Trustee holds the one outstanding share of our Special B Voting Stock, which is entitled to as many votes as there are outstanding Solana Exchangeable Shares on the record date, and may only vote the one share of Special B Voting Stock as directed by the holders of Solana Exchangeable Shares. Holders of Solana Exchangeable Shares who do not hold their Solana Exchangeable Shares in their own name are not entitled to instruct the Solana Trustee as to how to exercise voting rights at the annual meeting. Only holders of Solana Exchangeable Shares whose names appear on the records of Gran Tierra Exchangeco Inc. as the registered holders of Solana Exchangeable Shares are entitled to instruct the Solana Trustee as to how to exercise voting rights in respect of their Solana Exchangeable Shares at the annual meeting. Holders of Solana Exchangeable Shares may also obtain a proxy from the Solana Trustee to vote their Solana Exchangeable Shares at the annual meeting. Holders of Solana Exchangeable Shares should follow the instructions sent to them by the Solana Trustee in order to exercise their voting rights.
If at the close of business on April 27, 2016,March 12, 2018, your Exchangeable Shares were held, not in your name, but rather in an account at a brokerage firm, bank, dealer, or other similar organization, then you are the beneficial owner of shares held in “street name” and the Notice, and these proxy materials if you have received them, are being forwarded to you by that organization. The organization holding your account is considered to be the stockholder of record for purposes of instructing your trustee as to how to vote your Exchangeable Shares. As a beneficial owner, you have the right to direct your broker or other agent regarding how to instruct your trustee as to how to vote your Exchangeable Shares.
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What am I voting on?
There are fourthree matters scheduled for a vote:
| 1. | Election of |
| 2. | Ratification of the appointment of KPMG LLP as the independent registered public accounting firm for 2018; and |
| 3. | Approval, on an advisory basis, of the compensation of Gran Tierra’s named executive officers, as disclosed in this proxy |
What if another matter is properly brought before the annual meeting?
The Board knows of no other matters that will be presented for consideration at the annual meeting. If any other matters are properly brought before the annual meeting, it is the intention of the persons named in the accompanying proxy to vote on those matters in accordance with their best judgment.
How do I vote?
You may either vote “For” or “Against” or abstain from voting with respect to each nominee to the Board. ForBoard and each of the other matters to be voted on, you may vote “For” or “Against” or abstain from voting.
Stockholders of Record: Shares Registered in Your Name
If you are a stockholder of record, you may vote in person at the annual meeting, vote by proxy on the internet or by telephone, or vote by proxy using a proxy card that you may request or that we may elect to deliver at a later time. Whether or not you plan to attend the annual meeting, we urge you to vote by proxy to ensure your vote is counted. You may still attend the annual meeting and vote in person even if you have already voted by proxy.
| To vote in person, come to the annual meeting and we will give you a ballot when you |
| To vote using the proxy card, simply complete, sign and date the proxy card that may be delivered and return it promptly in the envelope provided. If you return your signed proxy card to us by 11: |
| To vote over the telephone, dial 1-800-652-VOTE (8683) using a touch-tone phone and follow the recorded instructions. You will be asked to provide the company number and control number from the Notice or proxy card. Your telephone vote must be received by 11: |
| To vote on the internet, go to http://www.investorvote.com/GTE to complete an electronic proxy card. You will be asked to provide the company number and control number from the Notice or proxy card. Your internet vote must be received by 11: |
Beneficial Owner: Shares Registered in the Name of Broker or Bank
If you are a beneficial owner of shares registered in the name of your broker, bank, or other agent, you should have received a Notice containing voting instructions, or these proxy materials and an annual report and form of proxy, from that organization rather than from Gran Tierra. Simply follow the voting instructions you receive from your broker, bank, or other agent to ensure that your vote is counted. If you have received these proxy materials and voting instructions therein, simply complete and mail the voting instructions to ensure that your vote is counted. Alternatively, if permitted by your broker or bank, you may vote by telephone or on the internet as instructed by your broker, bank or other agent. To vote in person at the annual meeting, you must obtain a valid proxy from your broker, bank, or other agent. Follow the instructions from your broker, bank, or other agent included with these proxy materials, or contact your broker, bank, or other agent to request a proxy form.
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Beneficial Owner: Exchangeable Shares
If you are a holder of Goldstrike Exchangeable Shares, you should have received a voting directioninstruction form with these proxy materials from the Goldstrike Trustee, which is the holder of the one share of Special A Voting Stock. Follow the instructions from the Goldstrike Trustee, or contact the Goldstrike Trustee for further information. Instruments of proxy must be received by Computershare Trust Company of Canada, Attention: Manager, Corporate Trust, 600, 530 –- 8th Avenue S.W., Calgary, Alberta, Canada T2P 3S8, Canada, by 11:59 p.m. (EDT)00 a.m. (Mountain Time) on June 20, 2016,April 30, 2018, or not less than 48 hours before the time of any adjournment(s) of the annual meeting. Follow the directions on the voting directioninstruction form, which includes how voting instructions may be sent by facsimile transmission.
If you are a holder of record of Solana Exchangeable Shares, you should have received a voting directioninstruction form with these proxy materials from the Solana Trustee, which is the holder of the one share of Special B Voting Stock. Follow the instructions from the Solana Trustee, or contact the Solana Trustee for further information. Instruments of proxy must be received by Computershare Trust Company of Canada, Attention: Manager, Corporate Trust, 600, 530 –- 8th Avenue S.W., Calgary, Alberta, Canada T2P 3S8 Canada by 11:59 p.m. (EDT)00 a.m. (Mountain Time) on June 20, 2016,April 30, 2018, or not less than 48 hours before the time of any adjournment(s) of the annual meeting. Follow the directions on the voting directioninstruction form.
If you are a beneficial owner of Exchangeable Shares registered in the name of your broker, bank, or other agent, you should have received a Notice containing voting instructions from that organization rather than from Gran Tierra. Simply follow the voting instructions in the Notice to ensure that your vote is counted.
| We provide telephone and internet proxy voting to allow you to vote your shares, with procedures designed to ensure the authenticity and correctness of your proxy vote instructions. However, please be aware that you must bear any costs associated with your telephone or internet access, such as usage charges from internet access providers and telephone companies. |
How many votes do I have?
On each matter to be voted upon, you have one vote for each share of common stock you own as of April 27, 2016.March 12, 2018. In addition, you have one vote for each Exchangeable Share held as of April 27, 2016,March 12, 2018, which are represented by the one share of Special A Voting Stock and one share of Special B Voting Stock of Gran Tierra, as applicable. Holders of Goldstrike Exchangeable Shares should follow the instructions sent to them by the Goldstrike Trustee and holders of Solana Exchangeable Shares should follow the instructions sent to them by the Solana Trustee in order to exercise their respective voting rights.
What if I return a proxy card or otherwise vote but do not make specific choices?
Stockholder of Record; Shares Registered in Your Name
If you are a holder of record and return a signed and dated proxy card or otherwise vote without marking voting selections, your shares will be voted, as applicable, “For” the election of all seveneight nominees for director, “For” the advisory approval of executive compensation, “For” the ratification of the selection of DeloitteKPMG LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2016,2018, and “For” the approval of the change in the Company's state of incorporation from the State of Nevadaadvisory vote to the State of Delaware.approve named executive officer compensation. If any other matter is properly presented at the annual meeting, your proxyholder (one of the individuals named on your proxy card) will vote your shares using his or her best judgment.
Beneficial Owner; Shares Registered in the Name of a Broker or Bank
If you are a beneficial owner of shares registered in the name of your broker, bank or other nominee, and you do not provide the broker or other nominee that holds your shares with voting instructions, your broker or other nominee may not vote your shares on any proposal other than Proposal 3the ratification of the selection of KPMG LLP as our independent registered public accounting firm at the Annual Meeting.annual meeting. See “What are ‘broker non-votes’?” below. We encourage you to provide voting instructions to the organization that holds your shares to ensure that your vote is counted on all fourthree proposals.
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Holder of Exchangeable Shares
If you are a holder of Exchangeable Shares and you do not return a properly filled out voting election, or if you return a signed and dated voting election without marking voting selections, your shares will not be voted.
What happens if I do not vote?
Stockholder of Record; Shares Registered in Your Name
If you are a stockholder of record and do not vote by completing your proxy card, by telephone, over the internet or in person at the annual meeting, your shares will not be voted.
Beneficial Owner; Shares Registered in the Name of a Broker or Bank
If you hold your shares in “street name,” you will receive instructions from your broker, bank or other nominee describing how to vote your shares. If you do not instruct your broker, bank or other nominee how to vote your shares, they may vote your shares as they decide as to each matter for which they have discretionary authority under the rules of the NYSE MKT (“NYSE MKT”)American. This year, the only matter with respect to which they may vote your shares without voting instructions is the proposal to ratify the selection of KPMG LLP as our independent registered public accounting firm (Proposal 2).
There are also non-discretionary matters for which brokers, banks and other nominees do not have discretionary authority to vote unless they receive timely instructions from you. When a broker, bank or other nominee does not have discretion to vote on a particular matter and you have not given timely instructions on how the broker, bank or other nominee should vote your shares, a “broker non-vote” results. Although any broker non-vote would be counted as present at the meeting for purposes of determining a quorum, it would be treated as not entitled to vote with respect to non-discretionary matters.
If your shares are held in “street name” and you do not give voting instructions, pursuant to NYSE MKTAmerican Company Guide Section 723, the record holder will not be permitted to vote your shares with respect to Proposals 1 2 or 4.3. If your shares are held in “street name” and you do not give voting instructions, the record holder will nevertheless be entitled to vote your shares with respect to Proposal 3.
Abstentions occur when stockholders are present at the Annual Meetingannual meeting but fail to vote or voluntarily withhold their vote forabstain on any of the matters upon which the stockholders are voting.
Holder of Exchangeable Shares
If you are a holder of Exchangeable Shares and you do not return a properly filled out voting election, or if you return a signed and dated voting election without marking voting selections, your shares will not be voted.
Who is paying for this proxy solicitation?
We will pay for the entire cost of soliciting proxies. In addition to these proxy materials, our directors and employees and Georgeson Shareholder Services may also solicit proxies in person, by telephone, or by other means of communication. Directors and employees will not be paid any additional compensation for soliciting proxies, but if Georgeson Shareholder Services solicits proxies it will be paid a fee of approximately [_______].proxies. We may also reimburse brokerage firms, banks and other agents for the cost of forwarding proxy materials to beneficial owners.
What does it mean if I receive more than one Notice or more than one set of proxy materials?
If you receive more than one Notice or more than one set of proxy materials, your shares may be registered in more than one name or in different accounts. Please follow the voting instructions on the Notices or the instructions on the proxy cards in the proxy materials to ensure that all of your shares are voted.
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Can I change my vote after submitting my proxy?
Stockholder of Record; Shares Registered in Your Name
Yes. You can revoke your proxy at any time before the final vote at the annual meeting. If you are the record holder of your shares, you may revoke your proxy in any one of the following ways:
| You may submit another properly completed proxy card with a later date, or vote again by telephone or on the internet; |
| You may send a timely written notice that you are revoking your proxy to Gran Tierra’s Corporate Secretary at |
| You may attend the annual meeting and vote in person. Simply attending the annual meeting will not, by itself, revoke your proxy. |
Your most current proxy card or telephone or internet proxy is the one that is counted.
Beneficial Owner; Shares Registered in the Name of a Broker or Bank
If your shares are held by your broker or bank as a nominee or agent, you should follow the instructions provided by your broker or bank.
Holder of Exchangeable Shares
If you are a holder of Goldstrike Exchangeable Shares, you should follow the instructions provided by the Goldstrike Trustee with respect to the Goldstrike Exchangeable Shares you hold, and if you are a holder of Solana Exchangeable Shares, you should follow the instructions provided by the Solana Trustee with respect to the Solana Exchangeable Shares you hold.
When are stockholder proposals due for next year’s annual meeting?
Stockholders who desire to present proposals at the 20172019 annual meeting of stockholders and to have proposals included in our proxy materials pursuant to Rule 14a-8 under the Exchange Act must submit their proposals to us at our principal executive offices (to the Corporate Secretary at 200, 150-13th900, 520 - 3rd Avenue S.W., Calgary, Alberta, T2R 0V2, Canada)Canada T2P 0R3), not later than the close of business on January 11, 2017.November 21, 2018. If the date of the 20172019 annual meeting is changed by more than 30 days from the date of the 20162018 annual meeting, the deadline for submitting proposals is a reasonable time before we begin to print and mail the proxy materials for our 2017 Annual Meeting.
Our Bylaws provide that stockholders may nominate persons for election to the Board of Directors or bring any other business before the stockholders (other than matters properly brought under Rule 14a-8) at the 20172019 annual meeting of stockholders only by sending to our Corporate Secretary a notice containing the information required by our Bylaws no earlierBylaws. Notice to us must be made not less than 30 or more than 65 days prior to the closedate of businessthe annual meeting; provided, however, that if the annual meeting is to be held on March 25, 2017 and noa date that is less than 50 days after the date on which the public announcement of the date of the annual meeting was made by Gran Tierra, notice may be made not later than the close of business on April 24, 2017. If we schedule our 2017the 10th day following the day on which public announcement of the date of the annual meeting to a date that is more than 30 days before or 60 days after June 23, 2017, then such notice must be given no earlier than the close of business 90 days, and no later than the close of business 60 days, before the rescheduled meeting, or notice must be given within 10 days following the date public notice of the rescheduled meeting is givenfirst made by us.Gran Tierra. Detailed information about how to make stockholder proposals or nominations for our annual meetings of stockholders can be found in our Bylaws.
How are votes counted?
Votes will be counted by the inspector of election appointed for the annual meeting, who will separately count, for the proposal to elect directors votes “For,” “Against” and broker non-votes; and, with respect tothe other proposals, votes “For” and“For,” “Against,” abstentions and, if applicable, broker non-votes. Broker non-votes have no effect and will not be counted towards the vote total for any proposal.
What are “broker non-votes”?
As discussed above, when a beneficial owner of shares held in “street name” does not give instructions to the broker or nominee holding the shares as to how to vote on matters deemed by the NYSE MKTAmerican to be “non-routine,” the broker or nominee cannot vote the shares. These unvoted shares are counted as “broker non-votes.”
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How many votes are needed to approve each proposal?
| Proposal No. 1, the election of directors: our bylaws provide for a majority voting standard for the election of directors in uncontested elections, which is generally defined as an election in which the number of nominees does not exceed the number of directors to be elected at the meeting. Because this is an uncontested election, each director shall be elected by the vote of a majority of the votes cast at a meeting of stockholders at which a quorum is present. A |
| Proposal No. 2, the |
| Proposal No. 3, the |
A quorum of stockholders is necessary to hold a valid meeting. A quorum will be present if stockholders holding outstanding shares of Gran Tierra’s capital stock representing at least a majority of the total number of votes that may be cast at the annual meeting are present at the annual meeting in person or represented by proxy. On the record date, there were [_____]391,302,707 votes that could be cast. Those votes were represented by [_____]385,394,642 shares of common stock outstanding and entitled to vote and [_____]5,908,065 shares of common stock issuable upon exchange of the Exchangeable Shares and therefore entitled to vote through the one share of Special A Voting Stock and one share of Special B Voting Stock. Thus, holders of outstanding shares representing at least [_____]195,651,354 votes must be present in person or represented by proxy at the annual meeting to have a quorum.
Your shares will be counted towards the quorum only if you submit a valid proxy (or one is submitted on your behalf by your broker, bank or other nominee) or if you vote in person at the annual meeting. Abstentions and broker non-votes will be counted towards the quorum requirement. If there is no quorum, the Chairman of the annual meeting or the holders of a majority of shares present at the annual meeting in person or represented by proxy must adjourn the annual meeting to another date.
How can I find out the results of the voting at the annual meeting?
Preliminary voting results will be announced at the annual meeting. In addition, final voting results will be published in a current report on Form 8-K that we expect to file within four business days after the annual meeting.
What proxy materials are available on the internet?
The notice of meeting, proxy statement and annual report to stockholders are available to view at:
http://www.edocumentview/com/www.edocumentview.com/GTE
or
on Gran Tierra’s website at: http://www.grantierra.com
See “How do I vote?” above for voting instructions.
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CORPORATE GOVERNANCE AND BOARD MATTERS
ELECTION OF DIRECTORS The Board Shares represented by executed proxies will be voted, if authority to do so is not withheld, for the election of the THE BOARD RECOMMENDS A VOTE “FOR” EACH OF THE NOMINEES NAMED BELOW. ROBERT B. HODGINS Age: 66 Calgary, Alberta, Canada Director since May 2015 Independent Director Shareholder approval rating at the 2017 Gran Tierra annual meeting – 76.8% Mr. Hodgins has Qualifications: Mr. PETER J. DEY Age: 77 Toronto, Ontario, Canada Director since May 2015 Independent Director Shareholder approval rating at the 2017 Gran Tierra annual meeting – 96.7% Mr. Dey has been the Chairman of Paradigm Capital Inc., an investment dealer, since November 2005. Qualifications: With more than 40 years of experience dealing with issues of corporate governance ranging from serving on public boards to private practice as a lawyer, GARY S. GUIDRY Age: 62 Calgary, Alberta, Canada Director since May 2015 Non-Independent Director - President and Chief Executive Officer Shareholder approval rating at the 2017 Gran Tierra annual meeting – 81.1% Mr. Qualifications: Mr. Guidry, as Chief Executive Officer, is responsible for the operations, financial management and implementation of the Company’s strategy. Mr. Guidry’s extensive experience in the oil and gas industry and international operations developed through his experience as a senior executive at several publicly traded companies brings valuable expertise and perspective to the Board. EVAN HAZELL Age: 59 Calgary, Alberta, Canada Director since June 2015 Independent Director Shareholder approval rating at the 2017 Gran Tierra annual meeting – 99.4% Mr. Hazell has been involved in the global oil and gas industry for over 30 years, initially as a petroleum engineer and then as an investment banker. Qualifications: Mr. Hazell RONALD W. ROYAL Age: 69 Abbotsford, British Columbia, Canada Director since May 2015 Independent Director Shareholder approval rating at the 2017 Gran Tierra annual meeting – 99.4% Mr. Royal has been a Qualifications: Mr. Royal Audit Committee Reserves & Health, Safety and Environment Committee SONDRA SCOTT Age: 51 New York, New York Director since September 2017 Independent Director Shareholder approval rating at the 2017 Gran Tierra annual meeting – n/a Ms. Scott is currently president of Verisk Maplecroft, a Qualifications: Ms. Scott has more than 25 years of experience as an energy and risk analytics business leader. She has significant leadership experience having led multi-sized global research and consultancy teams. Ms. Scott has worked in the United States, the United Kingdom, and Latin America, globalising businesses and building local practices. DAVID P. SMITH Age: 59 Toronto, Ontario, Canada Director since May 2015 Independent Director Shareholder approval rating at the 2017 Gran Tierra annual meeting – 99.4% Mr. Smith is a corporate director with extensive experience in the investment banking, investment research and management industry. He has been the Chairman of the Board of Directors of Superior Plus Corp., a diversified Qualifications: Mr. Smith BROOKE WADE Age: 64 Vancouver, British Columbia, Canada Director since June 2015 Independent Director Shareholder approval rating at the 2017 Gran Tierra annual meeting – 97.9% Mr. Wade is the President of Wade Capital Corporation, a private investment Qualifications: Mr. Wade’s extensive executive experience provides the Board with strong leadership and decision-making capabilities. Having served as chief executive officer of two public companies, Mr. Wade has deep knowledge of key business issues, including finance and capital markets. Compensation Committee (Chair) Nominating and Governance Committee Majority Voting Standard Our Bylaws provide for a majority voting standard for the election of directors in uncontested elections, which is generally defined as an election in which the number of nominees does not exceed the number of directors to be elected at the meeting. Because this is an uncontested election, each director shall be elected by the vote of a majority of the votes cast at a meeting of stockholders at which a quorum is present. A “majority of the votes cast” means that the number of shares voted “For” a director nominee must exceed the number of votes cast “Against” that director nominee. For these purposes, abstentions and broker non-votes will not count as a vote “For” or “Against” a nominee’s election and will have no effect in determining whether a director nominee has received a majority of the votes cast. If an incumbent director is not elected by a majority of the votes cast, the incumbent director must promptly tender his or her or her resignation to the Board. The Nominating and Corporate Governance Committee will make a recommendation to the Board on whether to accept or reject the director’s resignation or whether other action should be taken. The Nominating and Corporate Governance Committee shall recommend, and the Board of Directors’ decision shall be, to accept the resignation absent exceptional circumstances. The Board Other Information Regarding Our Directors Our above-listed directors have neither been convicted in any criminal proceeding during the past ten years nor been parties to any judicial or administrative proceeding during the past ten years that resulted in a judgment, decree or final order enjoining them from future violations of, or prohibiting activities subject to, federal or state securities laws or a finding of any violation of federal or state securities law or commodities law. Similarly, no bankruptcy petitions have been filed by or against any business or property of any of our directors or officers, nor has any bankruptcy petition been filed against a partnership or business association in which these persons were general partners or executive officers. Skills Matrix Below is a listing of each director’s key skills, together with a description of those key skills and experience desirable to support the strategic direction of Gran Tierra. Not every director is expected to be skilled in every area, however, we aim for the Board to have a balance of skills and experience. Independence of the Board of Directors Gran Tierra follows the listing standards of the NYSE The Board conducts an annual review regarding the independence from the Company’s management of each of its members. After review of all relevant identified transactions or relationships between each director, or any of his or her family members, and Gran Tierra, its senior management and its independent auditors, the Board has affirmatively determined that, other than Mr. Guidry, each of our directors and nominees for director In connection with its assessment of the independence of each non-employee director, the Board of Directors also determined that (i) Messrs. Smith, Hodgins and Royal, are independent as Stockholder Recommendations and The Nominating and Corporate Governance Committee will consider director candidates recommended by stockholders. The Nominating and Corporate Governance Committee does not intend to alter the manner in which it evaluates candidates, including the minimum criteria set forth Code of Gran Tierra has adopted Diversity Gran Tierra believes in the importance of diversity at all levels throughout the Company. In addition to the traditional concepts of diversity (i.e., gender, culture and geographic region), we believe it is important for the Board to achieve a diversity of knowledge, experience and capabilities that support the Company’s strategic direction. Currently, Gran Tierra does not have a formal policy concerning the diversity of director nominees as it is ultimately the skills and experience that are most important in determining the value that an individual brings to the Board. THE BOARD’S ROLE AND RESPONSIBILITIES Role of the Board of Directors The Board is selected by the stockholders to provide oversight of and strategic guidance to senior management. The core responsibility of a Board member is to fulfill his or her or her fiduciary duties of care and loyalty and otherwise to exercise his or her business judgment in the best interests of the Company and its stockholders. The Board has responsibilities to review, approve and monitor fundamental financial and business strategies and major corporate actions, assess major risks facing the Company and consider ways to address those risks, select and oversee management and determine its composition and oversee the establishment and maintenance of processes and conditions to maintain the integrity of the Company. Directors must act with integrity and are expected to demonstrate a commitment to the company, its values and its business and to long-term stockholder value. The duties and responsibilities of the Board and significant issues of corporate governance are set out in the Company’s Corporate Governance Guidelines which are regularly reviewed by the Nominating and Corporate Governance Committee. The guidelines are available on the Company’s website at www.grantierra.com/governance. Succession Planning As part of its mandate and annual workplan, the Nominating and Corporate Governance Committee reviews the succession plan for each senior officer, including the President and Chief Executive Officer. The Nominating and Corporate Governance Committee is responsible for ensuring that there is an orderly succession plan for the position of the President and Chief Executive Officer and other members of senior management. To meet this obligation, the President and Chief Executive Officer meets with the Nominating and Corporate Governance Committee and reviews each position, the status of the incumbent, a review of our talent pool and the succession plan for each role. Board Role in Risk Oversight The full Board is entrusted with the responsibility for overseeing the significant risks to which our business is exposed and ensuring there are processes in place to effectively identify, monitor and manage them. A significant risk is one that, if it were to occur, could materially impact our ability to meet or support our business objectives. The Board delegates responsibility for the execution of certain elements of risk oversight to the committees in order to ensure appropriate expertise, attention and diligence. The committees oversee the relevant risk areas and report to the Board regularly. Each committee operates according to a Board-approved written mandate outlining its duties and responsibilities. They also oversee the procedures and programs put in place by management to mitigate the risks and the allocation of adequate resources to address the risks. Management is responsible for ensuring that the Board and its committees are kept well informed of changing risks. The risk oversight responsibilities of the committees include the following: The Audit Committee is responsible for overseeing the integrity of the Company’s financial statements, the independent auditor’s qualifications and independence, the performance of the Company’s internal audit function and independent auditor, compliance with legal and regulatory requirements, and the Company’s accounting and financing reporting processes. The Compensation Committee is responsible for oversight of compensation-related risks, including reviewing management’s assessment of risks related to employee compensation programs. The Health, Safety and Environment Committee assists in overseeing the development, monitoring and effective implementation of systems, programs and initiatives to promote the management of health, safety and security at Gran Tierra and to address environmental, safety and operational risks. Additional information can be found in our Corporate Responsibility Report which is available on the Company’s website at http://www.grantierra.com/corporate-responsibility. The Nominating and Corporate Governance Committee assists in overseeing governance related risks, including regulatory, reputation and other risks. Communications With The Board Of Directors The Board has adopted a formal process by which stockholders and other interested persons may communicate with the Board or any of its directors. This information is available on Gran Tierra’s website at www.grantierra.com/governance. Board Leadership Structure Robert B. Hodgins currently serves as non-executive Chairman of our Board. The Board believes that the current board leadership structure, coupled with a strong emphasis on board independence, effectively allocates authority, responsibility, and oversight between management and the independent members of our Board. We believe separation of the roles of Chairman and Chief Executive Officer helps preserve our Board’s independence and objectivity and provides an appropriate division of labor between our Chairman and Chief Executive Officer. The Chairman of our Board presides over meetings of the Board, presides over meetings of stockholders, consults and advises the Board and its committees on the business and affairs of the Company, and performs additional duties as the Board may otherwise determine and delegate. Board Effectiveness and Director Assessment The Board performs an annual self-assessment, led by the Chair of the Nominations and Corporate Governance Committee, to evaluate its effectiveness in fulfilling its obligations. Directors complete a written questionnaire covering performance of the Board and its committees. The Chair of the Nominations and Corporate Governance Committee then interviews each director to obtain an assessment of the effectiveness of the Board and committees, as well as director performance and Board dynamics, summarizes these individual assessments for discussion with the Board and committees, and then leads a discussion with the Nominating and Corporate Governance Committee and the Board. Considerations in Evaluating Director Nominees The Nominating and Corporate Governance Committee is responsible for identifying and recruiting new candidates for nomination to the Board. The Nominating and Corporate Governance Committee considers recommendations for nominees for directorships submitted by stockholders. The Company will evaluate director nominees proposed by stockholders on the same basis as recommendations received from any other source. Please see “Stockholder Proposals” in this Proxy Statement and our Bylaws for procedures to submit director nominees to the Nominating and Corporate Governance Committee. In developing recommendations for the Board, the Nominating and Corporate Governance Committee uses a variety of methods for identifying and evaluating nominees for directors. Candidates for director nominees are In conducting this assessment, the Nominating and Corporate Governance Committee considers diversity, age, skills, and such other factors as it deems appropriate given the current needs of the Board and Gran Tierra, to The Nominating and Corporate Governance Committee believes that candidates should have certain minimum qualifications including: To identify, recruit and evaluate qualified candidates for the Board, the Nominating and Corporate Governance Committee may use the services of professional search firms. In some cases, nominees have been individuals known to Director Tenure Gran Tierra does not have a retirement policy or term limit for directors. We review our Board composition annually to ensure our board has the right skills to ensure the Company’s long-term success. The Company added one new director in 2017, and in the last three years, the refreshment rate for Gran Tierra’s board has been 100%. Orientation and Education The purpose of the Director Orientation and Education Program is to ensure there is an orientation program for new directors and an ongoing education program for existing directors. The program includes materials and resources that will inform and educate directors on the Company’s corporate governance framework, its business, operations and current issues and strategies. New directors are provided with a copy of the Company’s director’s manual which includes the Board and Committee mandates, corporate governance guidelines and other company policies. New directors attend an Each director is expected to maintain the necessary level of expertise to perform his or her responsibilities as a director. Continuing education is provided through a number of methods, including an annual dedicated strategy session, presentations from senior management, employees, and outside experts to the Board and its Committees on topics of interest and developing issues, as well as the ongoing distribution of relevant information. These presentations, meetings and discussions serve to increase the Board’s knowledge of the Company and its business, and assist the Board in the execution of its duties. Director Meetings and Attendance Directors are expected to attend, in person or by telephone, all meetings of the Board and all meetings of each committee of which they are a member. All of the directors who were nominated attended the 2017 annual meeting. Executive Sessions As part of each regularly scheduled Board meeting, the independent directors meet without our management team. The Chairman leads such discussions. INFORMATION REGARDING COMMITTEES OF THE BOARD OF DIRECTORS The Board has five standing committees: an Audit Committee, a Compensation Committee, a Health, Safety and Environment Committee, a Nominating and Corporate Governance Committee, and a Reserves Committee. The composition and responsibilities are described below. Members serve on these committees until their resignation or until otherwise determined by the Board. The committees regularly report their activities and actions to the full Board, generally at the next Board meeting following the committee meeting. Each of the committees operates under a charter approved by the Board. Current copies of the charters of the committees are available on the Company’s website at www.grantierra.com/governance. The Audit Committee oversees the accounting and financial reporting process and the audit of the Company’s financial statements, and assists the Board in monitoring the financial systems and Gran Tierra’s legal and regulatory compliance. The Audit Committee met four times in 2017 and at each meeting met with our independent auditors and the internal auditor, both privately and in the presence of management. The Audit Committee is responsible for, among other things: ● Evaluation and retention of Auditors ● Approval of audit engagements ● Approval of non-audit services ● Review of audited financial statements and management’s discussion and analysis ● Review of quarterly financial statements ● Review of earnings press releases ● Review of accounting principles and policies ● Review of guidelines and policies with respect to risk assessment and risk management ● Review of the scope, adequacy and effectiveness of internal control over financial reporting ● Review and oversee the internal audit function ● Approval of the Company’s hedging policies and procedures The Audit Committee operates under a written charter that was adopted by the Board and satisfies the applicable standards of the SEC and the NYSE American. A copy of the Audit Committee Charter is available on Gran Tierra’s website at www.grantierra.com/governance. The Compensation Committee acts on behalf of the Board to review, recommend for adoption and oversee Gran Tierra’s compensation strategy, policies, plans and programs. The Compensation Committee is responsible for, among other things: ● Review and approve the components of compensation for the Chief Executive Officer and other executive officers ● Review and approve the corporate goals and objectives relevant to the compensation for the Chief Executive Officer and other executive officers ● Evaluate the performance of the Chief Executive Officer and other executive officers in light of established goals and objectives ● Establish policies with respect to equity compensation arrangements ● Review the risks arising from our compensation policies and practices ● Review and approve the compensation and other terms of employment or service, including severance and change-in-control arrangements, of Gran Tierra’s Chief Executive Officer and the other executive officers ● Oversee Gran Tierra’s equity compensation plans for employees and directors ● Evaluate and make recommendations regarding director compensation ● Select compensation consultants and other advisors ● Review the Compensation Discussion and Analysis The Compensation Committee operates under a written charter that was adopted by the Board and satisfies the applicable standards of the SEC and the NYSE American. A copy of the Compensation Committee Charter is available on Gran Tierra’s website at www.grantierra.com/governance. The Health, Safety and Environment Committee acts on behalf of the Board and assists the Board in fulfilling its responsibilities in relation to environmental, health and safety matters, including monitoring and overseeing the Company’s policies and procedures for ensuring compliance by the Company with environmental regulatory requirements and ensuring that employees are provided with a safe environment in which to perform their duties. The Health, Safety and Environment Committee is responsible for, among other things: ● Develop and approve the environmental, health and safety goals and objectives of the Company ● Review and monitor the environmental policies and activities of the Company to ensure that the Company is in compliance with environmental laws and legislation and that the Company conforms with industry standards ● Review and monitor the health and safety policies and activities of the Company ● Review environmental, health and safety compliance issues and incidents of non-compliance to determine that the Company is taking all necessary action in respect of those matters and that the Company has been diligent in carrying out its responsibilities and activities in that regard ● Review significant external or internal audit or consultants’ reports relating to environmental, health or safety matters; ● Review significant legislative and regulatory changes including policy proposals and modifications that could impact the Company The Health, Safety and Environment Committee operates under a written charter that was adopted by the Board, a copy of which is available on Gran Tierra’s website at www.grantierra.com/governance. The Reserves Committee acts on behalf of the Board and assists the Board in fulfilling its oversight responsibilities with respect to evaluating and reporting on the Company’s oil and gas reserves. The Reserves Committee is responsible for, among other things: ● Approve the engagement of the independent reserves evaluators and their compensation ● Review disclosure procedures with respect to the oil and gas activities of the Company ● Review the Company’s procedures for providing information to the independent reserves evaluator ● Meet in-camera with the independent reserves evaluators ● Make recommendations to the Board regarding the approval of the Company’s year-end reserves evaluations The Reserves Committee operates under a written charter that was adopted by the Board, a copy of which is available on Gran Tierra’s website at www.grantierra.com/governance. The Nominating and Corporate Governance Committee acts on behalf of the Board to identify, review and evaluate candidates to serve as directors of Gran Tierra, making recommendations to the Board regarding corporate governance issues, assessing the performance of the Board and management, and developing a set of corporate governance principles for Gran Tierra. The Nominating and Corporate Governance Committee is responsible for, among other things: ● Identify and review director nominees ● Consider recommendations for Board nominees and proposals submitted by the Company’s stockholders ● Assess the performance of the Board ● Recommend chair and membership of board committees ● Review director independence ● Consider and review continuing education for directors ● Review and assess our Corporate Governance Guidelines ● Review succession planning for our Chief Executive Officer and other executive officers ● Review insurance coverage for the directors and executive officers The Nominating and Corporate Governance Committee operates under a written charter that was adopted by the Board and satisfies the applicable standards of the SEC and the NYSE American. A copy of the Compensation Committee Charter is available on Gran Tierra’s website at www.grantierra.com/governance. Compensation Committee Interlocks And Insider Participation None of the members of the Compensation Committee has at any time been an officer or employee of Gran Tierra. No member of the Board or of the Compensation Committee served as an executive officer of another entity that had one or more of our executive officers serving as a member of that entity’s board or compensation committee. The objective of Gran Tierra’s Non-executive director compensation is In addition, we align the interests of our Directors’ DSU Plan The Board introduced a DSU program in 2016 as a vehicle through which directors may elect to defer receipt of their fees and invest such deferred amounts in notional shares of Gran Fees and Retainers for 2017 The director compensation structure for non-executive directors consists of an all-inclusive Board retainer and consists of both a cash component and an equity component. Each of these components is described below in more detail. The cash retainer portion of the director’s fees can be taken in the form of cash, restricted stock Units (“RSUs”), DSUs or any combination thereof, as elected by each non-employee director. The equity portion must be taken in the form of equity until the stock ownership guideline is achieved. A maximum of 25% of the equity retainer can be taken as stock options which vest immediately and expire after five years. DSUs vest immediately but are not paid out until the director ceases to Director Compensation Table The following table shows for the fiscal year ended December 31, 2017, the value of amounts paid or granted to all non-employee directors of Gran Tierra: Option Awards ($) Director Share Ownership Requirements Gran Tierra 3x annual Board cash retainer fees in Common Shares and DSUs $73,735 x 3 = $221,204 3x annual Board cash retainer fees in Common Shares and DSUs $43,842 x 3 = $131,527 All of the Directors’ and Officers’ Insurance We maintain an insurance policy for directors’ and officers’ liability. It provides coverage for costs incurred to defend and settle claims against directors or officers up to an annual limit of $100 million. The cost of coverage for 2017 was approximately $390,000. Directors and officers do not pay any portion of the premiums. No claims were made or became payable in RATIFICATION OF SELECTION OF INDEPENDENT AUDITORS The Audit Committee of the Board has selected Neither Gran Tierra’s Bylaws nor other governing documents or law require stockholder Representatives of KPMG LLP are expected to be present at the annual meeting and will have an opportunity to make a statement and respond to appropriate questions from stockholders raised at the meeting. THE BOARD UNANIMOUSLY RECOMMENDS A VOTE IN FAVOR OF PROPOSAL 2. RECENT CHANGE IN INDEPENDENT AUDITORS As previously reported in a Current Report on Form 8-K, on March 12, 2018, the Audit Committee of the Deloitte’s reports on the Company’s consolidated financial statements for the fiscal years ended December 31, 2017 and 2016 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles. During the two most recent fiscal years ended December 31, 2017 and 2016 and in the subsequent interim period through the Dismissal Date, there were (i) no disagreements between the Company and Deloitte on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement, if not resolved to the satisfaction of Deloitte, would have caused Deloitte to make reference to the subject matter of the disagreement in its reports on the consolidated financial statements for such years and (ii) no “reportable events” (as that term is defined in Item 304(a)(1)(v) of Regulation S-K). The Company provided Deloitte with a copy of the disclosure from its Current Report on Form 8-K, and requested that Deloitte furnish the Company with a letter addressed to the U.S. Securities and Exchange Commission stating whether Deloitte agrees with the disclosures contained in this Current Report on Form 8-K, and, if not, stating the respects in which it does not agree. The Company received the requested letter from Deloitte and a copy of Deloitte’s letter was filed as Exhibit 16.1 to its Current Report on Form 8-K. Furthermore, during the Company’s two most recent fiscal years ended December 31, 2017 and 2016 and the subsequent interim period through the Dismissal Date, neither the Company nor anyone on its behalf has consulted with KPMG regarding (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements, and neither a written report nor oral advice was provided to the Company that KPMG concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing, or financial reporting issue or (ii) any matter that was either the subject of a “disagreement” (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of Regulation S-K) or a “reportable event” (as that term is defined in Item 304(a)(1)(v) of Regulation S-K). The Audit Committee is a committee of the Board comprised solely of independent directors as required by the listing standards of the NYSE American and rules of the SEC. In accordance with the written Audit Committee Charter, the Audit Committee assists the Board in fulfilling its responsibility for oversight of the quality and integrity of the accounting, auditing and financial reporting practices or the Company. The Audit Committee has reviewed and discussed the audited financial statements for the fiscal year ended December 31, 2017, with management of Gran Respectfully submitted by the Audit Committee of the Board of Directors, David P. Smith, Chair Robert B. Hodgins Ronald W. Royal Set forth below is a summary of fees paid to Deloitte Audit Fees Audit Fees are primarily for the annual audit of the Company’s consolidated financial statements included in the Form 10-K, including the audit of the effectiveness of the Company’s internal controls over financial reporting, the reviews of the Company’s financial statements included in the Forms 10-Qs, statutory audits, and other procedures required to be performed by the independent auditor to be able to form an opinion on the Company’s consolidated financial statements. Audit-Related Fees Audit-Related Fees include fees billed for assurance and Tax Fees Tax Fees in 2016 included fees billed for All Other Fees Other fees in All Pre-Approval Policies and Procedures Our Audit Committee is responsible for the engagement of the independent auditors and for approving, in advance, all auditing services and permitted non-audit services to be provided by the independent auditors. The Audit Committee maintains a policy for the engagement of independent auditors that is intended to maintain the independence from Gran Tierra of the independent auditors. In adopting this In its review of all non-audit service fees, our Audit Committee considers, among other things, the possible effect of these services on the independence of our independent auditors. Relevant considerations include, but are not limited to, whether the services are prohibited pursuant to SEC rules, whether the auditors are best positioned to provide the services, and the percentage of total services the non-audit services will comprise. Any approval required under this policy must be given by our Audit Committee or by the chairperson of the Audit Committee in office at the time, provided that any pre-approval decisions made by the chairperson must be reported to the Audit Committee at its next scheduled meeting. Gran Tierra’s Audit Committee will not delegate its responsibilities to approve services performed by the independent auditors to any member of management. Under the The compensation of Gran Tierra’s named executive officers subject to the vote is Accordingly, the Board is asking the stockholders to indicate their support for the “RESOLVED, that the compensation paid to Gran Tierra’s named executive officers, as Because the CERTAIN BENEFICIAL OWNERS AND MANAGEMENT Security Ownership The following table sets forth certain information regarding the beneficial ownership of Gran Beneficial Ownership of Directors and Named Executive Officers The following table sets forth certain information regarding the beneficial ownership of Gran Section 16(a) of the Exchange Act requires Gran Tierra’s directors and executive officers, and persons who own more than ten percent of a registered class of Gran Tierra’s equity securities, to file with the SEC initial reports disclosing the amount and nature of their beneficial ownership and reports of changes To Gran Tierra’s knowledge, based solely on a review of Our executive officers as of Gary S. Guidry Ryan Ellson to Caracal, Mr. Ellson was Vice President of Finance at Sea Dragon Energy from April 2010 until August 2011. In these positions, Mr. Ellson oversaw financial and accounting functions, implemented and oversaw internal financial controls, secured a reserve based lending facility and was involved in multiple capital raises. Mr. Ellson has held management and executive positions with companies operating in Chad, Egypt, India and Canada. Mr. Ellson is a Chartered Accountant and holds a Bachelor of Commerce and a Master of Professional Accounting from the University of Saskatchewan. Ed Caldwell has been our Vice President, Health, Safety and Environment & Corporate Social Responsibility since June 2016. Mr. Caldwell had a distinguished 27-year career with ExxonMobil and Imperial Oil, and most recently worked with Caracal Energy Inc. in Caracal’s efforts and achievement in Chad. Mr. Caldwell has extensive experience in senior Regulatory Approvals and HSE Management roles in Canada, Asia, Russia, and Africa. He has also worked with the Government of Canada and, in that capacity, represented Canada at the OECD Energy/Environment Committee as well as at the Intergovernmental Panel on Climate Change. Mr. Caldwell graduated in Chemical Engineering (Distinction) from Dalhousie University. Adrian Coral James Evans Alan Johnson Susan Mawdsley has been our Vice President, Finance and Corporate Controller since June 2016. Ms. Mawdsley is a Chartered Accountant with 25 years of experience in the oil and gas industry. She has been the Corporate Controller of Gran Tierra Energy since 2012 and has direct responsibility for the finance departments in all business units, as well as internal audit. Prior to joining Gran Tierra in 2011, she was an independent consultant providing contract controller, Chief Financial Officer, and other finance related services to publicly traded domestic and international oil and gas companies. Ms. Mawdsley is a Chartered Accountant and holds a Bachelor of Music in Performance degree from the University of Toronto. Glen Mah has been our Vice President, Business Development since June 2016. Mr. Mah is a Petroleum Geologist with extensive management experience covering the execution of exploration programs, field development and asset management for conventional and unconventional hydrocarbons. He has worked with onshore and offshore projects in various petroleum basins in the Americas, Africa, Middle East and Asia. From 2005 until 2008, Mr. Mah was the Chief Geologist with the highly successful Tanganyika Oil Company Ltd. Mr. Mah has Alberta-registered Professional designation with APEGA and holds a Bachelor of Science degree Specialization in Geology from the University of Alberta. Rodger Trimble has been our Vice President, Investor Relations since June 2016. Mr. Trimble is a Professional Engineer with 30+ years of experience in domestic and international basins in various management positions. Prior to joining Gran Tierra, Mr. Trimble was Head of Corporate Planning, Budgeting & Finance with Glencore E&P (Canada) Inc., an oil and gas company. In January 2013, Mr. Trimble became Director Corporate Planning, Budget & Business Development with Caracal Energy Inc., an international oil and gas company, which was acquired by Glencore E&P (Canada) in July 2014. He has held several senior management positions ranging from Country Manager in Argentina with Canadian Hunter Exploration, Vice President, Exploitation with Esprit Energy Trust, Manager, Reservoir Engineering with Apache Canada Inc. and Manager, Upstream Evaluations - Frontiers & International with Husky Energy. Mr. Trimble is an Alberta-registered Professional Engineer and a member of APEGA. He received a Bachelor of Science in Petroleum Engineering (with Distinction) from Stanford University. Lawrence West The following discussion provides details regarding our executive compensation program and 2017 compensation arrangements for each of our Our compensation philosophy Responsibilities for Executive Compensation Compensation decisions for our executive officers The Board and The The Compensation Committee and the Board make their compensation decisions for the upcoming year, and review performance for the prior year, generally in the first quarter of the year. For example, annual bonuses in respect of Assessment of The Compensation Committee uses Company performance Role of the Independent Compensation Consultant When making determinations regarding executive compensation, the Compensation Committee considers advice from external advisors and third-party compensation surveys as well as the advice of Compensation Committee members and other members of the Board based on their knowledge and experience to set competitive, results driven levels of salary and other compensation. The Compensation Committee may, in its sole discretion, retain or obtain the advice of independent compensation consultants or other external advisors and is directly responsible for the appointment, compensation arrangements and oversight of the work of any such person. The retention of independent compensation The Compensation Committee may select a compensation consultant only after taking into consideration all factors relevant to that person’s independence from management. We will provide appropriate funding, as determined by the Compensation Committee, Risk Considerations The Compensation Committee and the Board Compensation Peer Group - 2017 The following is our peer group for executive compensation purposes. The companies in the executive compensation peer group were selected as they are of similar size as Gran Tierra, are in the same line of business, and are listed on a major exchange in Canada or the United States. During 2017, Oando Energy Resources Inc., Bankers Petroleum Ltd. and Mart Resources Inc. were removed from our peer group as they were either sold or delisted. As the Company’s executive office is located in Canada, most of the companies in the peer group above were chosen as they are also located in Canada and would have similar pay structures. Although the Company monitors the salaries of the executives in its compensation peer group, there were no salary increases for the Company’s NEOs in 2017. The Company has a separate peer group for evaluating performance which is further explained on page 50. Elements of Our Compensation Program Our executive compensation program includes Base Salary We pay base salaries in order to attract and retain talented executives and to provide our NEOs with a fixed base of cash compensation. The salaries typically reflect each NEOs experience, skills, knowledge and responsibilities. Competitive market conditions also have an impact on setting salary levels. The salaries of our NEOs are reviewed on an annual basis by our Chief Executive Officer (other than with respect to his own salary, which is reviewed and determined by the Compensation Committee). The table below sets forth the annual base salaries for our NEOs for fiscal 2017 which were unchanged from 2016. Short Term Incentives - Cash Bonus One of our key compensation objectives is for a significant portion of each NEO’s compensation to be tied to Company performance. Our annual cash bonus plan provides opportunities for our executives, including the NEOs, to earn annual cash bonuses tied to the successful achievement of key operational, financial and market objectives that that drive our business and stockholder value. In February 2017, the Compensation Committee approved the annual bonus target for each The value of the The following bonus Assessment of Individual Performance Individual performance has a significant impact on the annual cash bonus for NEOs other than the Chief Executive Officer and 2017 Corporate Performance Goals and Scores At the beginning of each fiscal year, the Board of Directors approves the measures (and associated performance targets) that will be used to measure corporate performance for the fiscal year. For 2017, the Board of Directors approved eight goals based on the Company’s budget and operating plan that were considered to be the key drivers to the Relative Weighting Factor 2017 Corporate Targets 2017 Performance Result 2017 Performance Factor Level Performance Factor Actual Annual Cash Bonuses Earned for 2017 The following table shows the 2017 annual cash bonus awards earned by each NEO: Long-Term Equity Incentive Program Our equity compensation program 2017 PSUs Granted As part of our Each PSU entitles the holder to The PSUs granted to our NEOs in 2017 may become fully vested at the end of the three-year performance period, based upon our performance with respect to four separate performance periods as follows: The calculation of the performance multiplier Total Shareholder Return.The Compensation Committee believes that the The Compensation Committee approved the following total shareholder return performance peer group (the “Performance Peer Group”) for the 2017 PSUs: If any of the peer companies undergoes a change in corporate capitalization or a corporate transaction (including, but not limited to, a going-private transaction, bankruptcy, liquidation, merger or consolidation) during the performance period, the Committee shall undertake an evaluation to determine whether such peer company will be replaced. The Committee has pre-approved Denbury Resources Inc., Baytex Energy Corp. and EP Energy Corporation as replacement companies. During 2017 Cobalt International Energy Inc., Stone Energy Corp. and TransAtlantic Petroleum Ltd. were removed from the Performance Peer Group and Tamarack Valley Energy Ltd., Carrizo Oil & Gas Inc., and Oasis Petroleum Inc. were added as replacements. The Performance Peer Group was developed with the assistance of our Compensation Consultants to meet at least one of the following specifications: an enterprise value of at least $1 billion; Proved Reserves of 30 million BOE; WI production before royalties of 20,000+ BOEPD; production to be at least 50% oil and natural gas liquids. Enterprise value was calculated as the market value of our common stock plus the market value of debt minus cash and investments. Net Asset Value. The following table lists the number of PSUs awarded in 2017 at minimum, target, and maximum levels : 2017 Performance For the performance Stock Options Stock options provide NEOs with an option to buy Gran Tierra Our Compensation Committee and Stock options RSUs No RSUs were granted to NEOs in 2017 as the program has been replaced with grants of PSUs for our executives. RSUs granted prior to 2017 entitle the holder to receive, either the underlying number of shares of our Common Stock upon vesting of such units or, at the option of the Company, a cash payment equal to the value of the underlying shares. RSUs vest over three years, and once an RSU is vested, it is immediately settled. Equity Awards Granted During 2017 In 2017, the Compensation Committee Benefits The NEOs are eligible for full participation in all rights and benefits under any life insurance, disability, medical, dental, health and accident plans maintained by Gran Tierra for its employees and executive officers. Our executive officers generally do not receive any supplemental retirement benefits or perquisites, except for limited perquisites provided on a case-by-case basis. In addition, our employees including our executive officers will be paid 100% of their base salary in the event they become disabled while still employed by us, until such time as the executive officer begins to receive long-term disability insurance benefits which is intended to pay two-thirds of base salary to a maximum of $15,000/month to age 70. These are standard basic benefits in our industry and help to retain and recruit key talent. Share Ownership Guidelines We have implemented share ownership guidelines for all of our executives, which are designed to align their long-term financial interests with those of our stockholders. The NEO share ownership guidelines are as follows: If at any time an executive officer does not meet their ownership requirement, they must retain (a) any of our Common Stock owned by them (whether owned directly or indirectly) and (b) any net shares received as the result of the exercise, vesting or payment of any equity award until the ownership requirement is met, in each case unless otherwise approved by the Compensation Committee. For this purpose, “net shares” means the shares of stock that remain after shares are sold or withheld to (i) pay the exercise price for a stock option award or (ii) satisfy any tax obligations, including withholding taxes, arising in connection with the exercise, vesting or payment of an equity award. Compliance with these requirements is evaluated as of December 31 of each year. The value of an individual’s share ownership as of such date is determined by multiplying the number of shares of our stock or other eligible equity interests held by the individual by the greater of the purchase price of the stock or the closing price on December 31 of each year. In determining stock ownership levels, we include shares of common stock held directly or indirectly by the officer (including shares beneficially owned in a trust, by a limited liability company or partnership, and by a spouse and/or minor children). Outstanding RSUs, PSUs and unexercised stock options are not included. If an executive officer does not satisfy the stock ownership requirements, they must retain all shares acquired on the vesting of equity awards or the exercise of stock options (net of exercise costs and taxes) until compliance is achieved. The following table shows the number and value of shares owned at December 31, 2017 compared with the minimum share ownership guideline: Clawback Provisions The Company has adopted a policy specifying that if an executive engages in fraud or intentional misconduct that requires a material restatement of financial results, and the fraud or intentional misconduct results in an incorrect determination that an incentive compensation performance goal had been achieved, the Board may take action to recover any incentive compensation resulting from the incorrect determination that had been paid to the executive during the three-year period preceding the filing of the accounting restatement. Prohibition on Speculative Trading of Company Stock We maintain a policy for securities transactions applicable to all officers, directors, and other members of management of the Company which prohibits engaging in short sales, transactions in put or call options, hedging transactions or other inherently speculative transactions with respect to our stock at any time. In addition, our Insider Trading Policy, among other things, prohibits our officers, including our NEOs, directors and employees from trading during quarterly and special blackout periods. Employment Agreements The Compensation Committee approves the terms of all NEO employment agreements. The terms of those agreements were structured to attract and retain persons key to our success, as well as to be competitive with compensation practices for executives in similar positions at companies of similar size and complexity. In assessing whether the terms of the employment agreements were competitive, the Compensation Committees received advice from our Compensation Consultant and reviewed appropriate surveys and industry benchmarking data. The employment agreements do not have a fixed term. No changes were made to any of the NEO employment agreements during 2017. The terms of the NEO employment agreements provide for certain payments and benefits in connection with a termination of employment and corporate transaction. The Compensation Committee believes these payments allow management to focus their attention and energy on making objective business decisions that are in the best interests of stockholders without allowing personal considerations to affect the decision-making process. Additionally, executive officers at other companies in our industry and the general market in which we compete for executive talent commonly provide post-termination payments, and we have consistently provided this benefit to certain executives in order to remain competitive in attracting and retaining skilled professionals in our industry. In 2017, the Company’s pay practices were amended so that no new employment agreements entered into between Gran Tierra and executive officers will include any provisions that provide for excise tax gross-ups or change in control “Single” or “Modified Single” triggers of severance payments or equity vesting accelerations. Say on Pay Advisory Vote on Executive Compensation The Company asked stockholders to vote on a “say-on-pay” advisory vote on our executive compensation in 2017 at the 2017 annual meeting of stockholders. Stockholders expressed substantial support for the compensation of our named executive officers, with approximately 95% of the votes cast in favor of the “say-on-pay” advisory vote. The Compensation Committee carefully evaluated the results of the 2017 advisory vote. The Compensation Committee also considers many other factors in evaluating our executive compensation programs as discussed in this Compensation Discussion and Analysis, including the Compensation Committee’s assessment of the interaction of our compensation programs with our corporate business objectives and review of peer group data, each of which is evaluated in the context of the Compensation Committee’s fiduciary duty to act as the directors determine to be in stockholders’ best interests. While each of these factors bore on the Compensation Committee’s decisions regarding our named executive officers’ compensation, the Compensation Committee did not make any changes to our executive compensation program and policies as a result of the 2017 “say-on-pay” advisory vote. REPORT OF THE COMPENSATION COMMITTEE The Compensation Committee has reviewed and discussed with management the Company’s disclosure under “Compensation Discussion and Analysis” contained in this proxy statement. Based on such review and discussion, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this proxy statement. Members of the Compensation Committee: Brooke Wade, Chair The following table summarizes the compensation of our NEOs for their performance during the years ended December 31, 2017, 2016 and 2015. 2017 GRANTS OF PLAN-BASED AWARDS The following table shows certain information regarding grants of plan-based awards granted to the NEOs for the fiscal year ended December 31, 2017: OUTSTANDING EQUITY AWARDS AT DECEMBER 31, 2017 The following table shows for the fiscal year ended December 31, The following table presents information concerning the aggregate number of Number of Shares Acquired on Vesting (#)(1) Value Realized on Vesting ($)(2) POTENTIAL Mr. In connection with Messrs. Guidry, Ellson, Coral, Evans and West In the event that Messrs. Guidry, Ellson, Coral, Evans or West die, voluntarily resign (without good reason, as defined below), or their employment is terminated by Gran Tierra for cause (as defined below), 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. The In addition, if Mr. Guidry is required to file a Pursuant to the employment agreements for each of Messrs. Guidry, Ellson, Coral, Evans and West, “cause” means any act or omission of the executive which would, at common law, permit an employer to terminate the employment of an employee without notice or payment in lieu of notice. As defined in the employment agreements for each of Messrs. Guidry, Ellson, Coral, Evans and West, As defined in the amendment to the employment agreement with Mr. Hardy, “change in control” generally means any of the following (note, “Company” includes either Gran Tierra Energy Inc. or Gran Tierra Energy Canada ULC): The following events will generally constitute a “change in control” pursuant to the employment agreements with each of Messrs. Guidry, Ellson, Coral, Evans and West: Upon a termination of employment, each of Messrs. Guidry, The table below estimates the amounts payable if an involuntary termination of employment without cause, a termination for good reason or a specified corporate transaction had occurred on December 31, Cash Severance ($) Stock Options ($)(1) RSUs ($)(1) PSUs ($)(1) Total ($) In determining the 2007 Equity Incentive Plan- The only equity compensation The Plan, provides for the grant of stock options, restricted stock awards, stock appreciation rights, RSUs and other stock awards, collectively referred to as“Awards.” To date, Gran Tierra has granted stock options, RSUs including DSUs and PSUs under the Plan. Purpose The Board adopted the Plan to provide a means by which employees, directors and consultants of Gran Tierra and its affiliates may be given an opportunity to acquire stock in Gran Tierra, to assist in retaining the services of such persons, to secure and retain the services of persons capable of filling such positions and to provide incentives for such persons to exert maximum efforts for the success of Gran Tierra and its affiliates. As of December 31, 2017, all of the approximately 332 employees, directors and consultants of Gran Tierra and its affiliates are eligible to participate in the Incentive Plan and may receive all types of awards. Stock Subject to the Plan The maximum aggregate number of shares reserved for issuance under the Plan is 39,806,100 shares, or the “Share Reserve.” Under the terms of the Plan, the Share Reserve will be reduced by (i) one share for each share of common stock issued pursuant to an option or stock appreciation right, and (ii) 1.55 shares for each share of common stock issued pursuant to any other type of stock award, referred to as a “Full Value Award.” If a stock award is settled in cash, such settlement will not reduce the Share Reserve. The following shares of common stock granted pursuant to a stock award under the Plan will become available for subsequent issuance under the Plan as such shares become available from time to time, as follows: However, any shares of common stock granted pursuant to a stock award under the Plan or the Prior Plan that are not delivered to a participant because of any of the following reasons will not become available for subsequent issuance under the Plan: Eligibility Employees (including officers), directors, and consultants of both Gran Tierra and its affiliates are eligible to receive all types of awards under the Plan. Under the Plan, no employee may be granted options or stock appreciation rights whose value is determined by reference to an increase over an exercise or strike price Repricing; Cancellation and Re-Grant of Stock Awards Under the Plan, the Board does not have the authority to reduce the exercise, purchase or strike price of an option or stock appreciation right or to cancel any outstanding option or stock appreciation right that has an exercise price greater than the current fair market value of our common stock in exchange for cash or other stock awards without obtaining the approval of our stockholders within 12 months prior to the repricing or cancellation and re-grant event. Additionally, the Board may not reduce the exercise price of an option or extend the term of an option held by an insider without obtaining the approval of the stockholders other than insiders who are eligible to receive stock awards and such insiders’ associates, at a meeting of the stockholders. Terms of Options The following is a description of the permissible terms of options under the Plan. Individual option grants may be more restrictive as to any or all of the permissible terms described below. Exercise Price; Payment The exercise price of options may not be less than 100% of the fair market value of the stock on the date of grant. The “fair market value” of Gran Tierra’s common stock on a particular day is generally the closing sales price for the common stock (or the closing bid, if no sales were reported) as quoted on the primary exchange or market upon which Gran Tierra’s common stock trades. If that day is not a market trading day, then the last market trading day prior to the day of determination is used. The exercise price of options granted under the Plan must be paid either in cash at the time the option is exercised or at the discretion of the Board, (i) by delivery of other common stock of Gran Tierra, (ii) by a “net exercise” arrangement, (iii) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of common stock, results in either the receipt of cash (or check) by Gran Tierra or the receipt of irrevocable instructions to pay the aggregate exercise price to Gran Tierra from the sale proceeds, or (iv) in any other form of legal consideration acceptable to the Board. Option Exercise Options granted under the Plan may become exercisable in cumulative increments, or vest, as determined by the Board. Shares covered by currently outstanding options under the Plan typically vest over a three year period in three equal annual installments during the participant’s employment by, or service as a director or consultant to, Gran Tierra or an affiliate. Term The maximum term of options under the Plan is 10 years. Options under the Plan generally terminate three months after termination of the participant’s Service unless (i) such termination is due to the participant’s permanent and total disability, in which case the option may, but need not, provide that it may be exercised (to the extent the option was exercisable at the time of the termination of Service) at any time within 12 months of such termination; (ii) the participant dies before the participant’s Service has terminated, or within three months after termination of such Service, in which case the option may, but need not, provide that it may be exercised (to the extent the option was exercisable at the time of the participant’s death) within 18 months of the participant’s death by the person or persons to whom the rights to such option pass by will or by the laws of descent and distribution; or (iii) the option by its terms specifically provides otherwise. A participant may designate a beneficiary who may exercise the option following the participant’s death. Individual option grants by their terms may provide for exercise within a longer period of time following termination of Service. The option term generally may be extended in the event that exercise of the option within these periods is prohibited. A participant’s option agreement may provide that if the exercise of the option following the termination of the participant’s Service would be prohibited because the issuance of stock would violate the registration requirements under the Securities Act, then the option will terminate on the earlier of (i) the expiration of the term of the option or (ii) three months after the termination of the participant’s service during which the exercise of the option would not be in violation of such registration requirements. Restrictions On Transfer The Board may grant stock options that are transferable to the extent provided in the stock option agreement. If an option does not provide for transferability then the option shall not be transferable except by will or by the laws of descent and distribution or pursuant to a domestic relations order and shall be exercisable during the lifetime of the option holder and only by the option holder. Shares subject to repurchase by Gran Tierra under an early exercise stock purchase agreement may be subject to restrictions on transfer that the Board deems appropriate. Terms of Restricted Stock Awards and Purchases of Restricted Stock Payment The Board determines the purchase price under a restricted stock purchase agreement but the purchase price may not be less than the par value of Gran Tierra’s common stock on the date of purchase. The Board may award stock bonuses in consideration of past services without a purchase payment. The purchase price of stock acquired pursuant to a restricted stock purchase agreement under the Plan must be paid either in cash at the time of purchase or at the discretion of the Board, (i) by cash at the time of purchase, (ii) by services rendered, or to be rendered to Gran Tierra or (iii) in any other form of legal consideration acceptable to the Board. Vesting Shares of stock sold or awarded under the Plan may, but need not be, subject to a repurchase option in favor of Gran Tierra in accordance with a vesting schedule as determined by the Board. The Board has the power to accelerate the vesting of stock acquired pursuant to a restricted stock purchase agreement under the Plan in the event of death, disability, or in the event of a Change in Control. Restrictions on Transfer Rights under a stock bonus or restricted stock bonus agreement may be transferred only upon the terms and conditions of the award agreement as the Board shall determine in its discretion, except where such assignment is required by law or expressly authorized by the terms of the applicable stock bonus or restricted stock purchase agreement. Other Stock Awards Other forms of stock awards valued in whole or in part with reference to or otherwise based on our common stock may be granted either alone or in addition to other stock awards under the Plan. The Board will have sole and complete authority to determine the persons to whom and the time or times at which such other stock awards will be granted, the number of shares of common stock (or the cash equivalent thereof) to be granted and all other conditions of such other stock awards. Other forms of stock awards may be subject to vesting in accordance with a vesting schedule to be determined by the Board. RSUs, including PSUs, are subject to a three year vesting Adjustment Provisions Transactions not involving receipt of consideration by Gran Tierra, such as a merger, consolidation, reorganization, stock dividend, or stock split, may change the type(s), class(es) and number of shares of common stock subject to the Plan and outstanding awards. In that event, the Plan will be appropriately adjusted as to the type(s), class(es) and the maximum number of shares of common stock subject to the Plan, and outstanding Awards will be adjusted as to the type(s), class(es), number of shares and price per share of common stock subject to such Awards. Effect Of Certain Corporate Transactions The Plan provides that in the event of the consummation of (i) the sale or other disposition of all or substantially all of the assets of Gran Tierra, (ii) the sale or other disposition of at least fifty percent of the outstanding securities of Gran Tierra, or (iii) certain specified types of merger, consolidation or similar transactions, or collectively, a corporate transaction, any surviving or acquiring corporation may continue or assume Awards outstanding under the Plan or may substitute similar Awards. Regardless of whether any surviving or acquiring corporation assumes such Awards or substitutes similar Awards, with respect to Awards held by participants whose Service with Gran Tierra or an affiliate has not terminated as of the effective time of the corporate transaction, the vesting of such awards (and, if applicable, the time during which such awards may be exercised) will be accelerated in full. Duration, Amendment And Termination The Board may suspend or terminate the Plan without stockholder approval or ratification at any time or from time to time. The Board may at any time, or from time to time, amend or revise the Plan as follows: (a) to make amendments to the Plan or a Stock Award of a housekeeping or administrative nature; (b) if the common stock is listed on the Toronto Stock Exchange subject to any required approval of the TSX, to change the vesting or termination provisions of a Stock Award or the Plan; (c) amendments necessary to comply with provisions of applicable law or stock exchange requirements or for grants to qualify for favorable treatment under applicable laws; and (d) any other amendment, fundamental or otherwise, not requiring stockholder approval under the Code. However, no amendment will be effective unless approved by the stockholders of Gran Tierra within 12 months before or after its adoption by the Board to the extent such approval is necessary to satisfy the requirements of Section 422 of the Code. The Board may submit any other amendment to the Plan for stockholder approval. For so long as Gran Tierra’s stock is listed on the TSX, under the rules and policies of the TSX any amendment to the Plan is subject to pre-clearance of such amendment by the TSX, and no amendment, suspension or discontinuance of the Plan may contravene the requirements of the TSX. Burn Rate In 2017 there were 2,029,035 stock options granted under the Plan which resulted in a burn rate of 0.52%. In 2016 there were 1,744,165 stock options granted under the Plan which resulted in a burn rate of 0.56%, and in 2015 there were 5,346,260 stock options granted under the Plan which resulted in a burn rate of 1.93%. Related Person Transactions Policy And Procedures Gran Tierra discourages transactions with related persons. The charter of the Audit Committee provides that the Audit Committee is charged with reviewing and There have been no related party transactions since January 1, 2017 where the procedures described above did not require review, approval or ratification or where these procedures were not followed. Certain Related-Person Transactions Gran Tierra has entered into indemnity agreements with certain officers and directors which provide, among other things, that Gran Tierra will indemnify such officer or director, under the circumstances and to the extent provided for therein, for expenses, damages, judgments, fines and settlements he or she may be required to pay in actions or proceedings which he or she is or may be made a party by reason of his or her position as a director, officer or other agent of Gran Tierra, and otherwise to the fullest extent permitted under Stockholders interested in submitting a proposal for inclusion in our proxy materials and for presentation at the Our Bylaws provide that stockholders may nominate persons for election to the Board of Directors or bring any other business before the stockholders (other than matters properly brought under Rule 14a-8) at the The SEC has adopted rules that permit companies and intermediaries (e.g., brokers) to satisfy the delivery requirements for Notices of Internet Availability of Proxy Materials or other annual meeting materials with respect to two or more stockholders sharing the same address by delivering a single Notice of Internet Availability of Proxy Materials or other annual meeting materials addressed to those stockholders. This process, which is commonly referred to as “householding,” potentially means extra convenience for stockholders and cost savings for companies. This year, a number of brokers with account holders who are stockholders of Gran Tierra The Board knows of no other matters that will be presented for consideration at the annual meeting. If any other matters are properly brought before the meeting, it is the intention of the persons named in the accompanying proxy to vote on such matters in accordance with their best judgment. March 21, 2018BUSINESS OF THE ANNUAL MEETING1Gran Tierra’scurrently consists of Directors is nominating the eight individuals identified below for election as directors. There are seven nominees for director this year. Mr. Price will not stand for re-election at the 2016 Annual Meeting. Accordingly, Mr. Price's term as a member of the Board and any committee thereof will expire following the 2016 Annual meeting, and the size of our BoardUnless you specify differently, proxies received will be reduced to seven.voted FOR Robert B. Hodgins, Peter J. Dey, Gary S. Guidry, Evan Hazell, Ronald W. Royal, Sondra Scott, David P. Smith and Brooke Wade. Each director to be elected and qualified will hold office until the next annual meeting of stockholders and until his or her successor is elected, or, if sooner, until the director’s death, resignation or removal. Each of the nominees listed below is currently a director of Gran Tierra. Sondra Scott was appointed to the Board on September 19, 2017 based on the recommendation of the Chief Executive Officer and Nominating and Corporate Governance Committee. It is Gran Tierra’s policy to invite nominees for directors to attend the annual meeting. A majoritymeeting; all of the directors then in office attended the 2015 Annual Meeting of Stockholders.Directors are elected by a majority of the votes cast by the holders of voting shares at a2017 annual meeting of stockholders at which a quorum is present; provided, however, that if the number of nominees exceeds the number of directors to be elected, directors shall be elected by a plurality of the votes cast.stockholders.seveneight nominees named below. If any nominee becomes unavailable for election as a result of an unexpected occurrence, shares that would have been voted for that nominee will instead be voted for the election of a substitute nominee proposed by Gran Tierra. Each person nominated for election11 
agreedbeen an independent businessman since November 2004. Prior thereto, Mr. Hodgins served as the Chief Financial Officer of Pengrowth Energy Trust (a TSX and NYSE-listed energy trust) from 2002 to serve if elected. Gran Tierra’s management has no reason2004. Prior to believe that, any nominee will be unableMr. Hodgins held the position of Vice President and Treasurer of Canadian Pacific Limited (a a Toronto Stock Exchange (“TSX”) and NYSE-listed diversified energy, transportation and hotels company) from 1998 to serve.MAJORITY VOTING STANDARDOur Bylaws provide for a majority voting standard for2002 and was Chief Financial Officer of TransCanada PipeLines Limited (a TSX and NYSE-listed energy transportation company) from 1993 to 1998. Mr. Hodgins received an Honours Bachelor of Arts in Business from the electionRichard Ivey School of directors in uncontested elections, which is generally defined as an election in which the number of nominees does not exceed the number of directors to be electedBusiness at the meeting. Because this is an uncontested election, each director shall be elected by the voteUniversity of a majority of the votes cast at a meeting of stockholders at which a quorum is present. A "majority of the votes cast" means that the number of shares voted "For" a director nominee must exceed the number of votes cast "Against" that director nominee. For these purposes, abstentionsWestern Ontario and broker non-votes will not count as a vote "For" or "Against" a nominee's election and will have no effect in determining whether a director nominee has received a majority of the votes cast. If an incumbent director is not elected by a majority of the votes cast, the incumbent director must promptly tender his or her resignation to the Board. The NominatingChartered Accountant designation and Corporate Governance Committee will make a recommendation to the Board on whether to accept or reject the director's resignation or whether other action should be taken. The Board will act on the Nominating and Corporate Governance Committee's recommendation and publicly disclose its decision within 90 days from the date of the certification of the election results. An incumbent director who tenders his or her resignation after failing to receive a majority of the votes cast will not participate in the Nominating and Corporate Governance Committee's or the Board's recommendation or decision or any deliberations related thereto.8NOMINEESIn May 2015, a major shareholder of the Company oversaw a transition in Board and Management that included the nomination and election of seven new directors.The following is a brief biography of each nominee for director, his age on April 27, 2016, and a discussion of the specific experience, qualifications, attributes or skills of each nominee that led the Nominating and Corporate Governance Committeeto recommend that person for reelection as a director, as of the date of this proxy statement.NAMEAGEPOSITIONS HELD WITH GRAN TIERRAGary S. Guidry60President, Chief Executive OfficerPeter Dey75DirectorEvan Hazell57DirectorRobert B. Hodgins64Chairman of the Board, DirectorRonald Royal67DirectorDavid P. Smith57DirectorBrooke Wade62Director____________________Gary S. GuidryMr. Guidry has been our Chief Executive Officer and President since May 7, 2015. Mr. Guidry was the Chief Executive Officer of Onza Energy Inc. from January 2014, until May 2015. From July 2011 to July 2014, Mr. Guidry served as President and Chief Executive Officer of Caracal Energy Inc. Mr. Guidry also served as President and CEO of Orion Oil & Gas Corp. from October 2009 to July 2011, Tanganyika Oil Corp. from May 2005 to January 2009, and Calpine Natural Gas Trust from October 2003 to February 2005. As chief executive officer of these companies, Mr. Guidry was responsible for overseeing all aspects of the respective company’s business. Mr. Guidry currently sits on the boards of Africa Oil Corp. (since April 2008) and Shamaran Petroleum Corp. (since February 2007), where he also servesadmitted as a member of each company’s Audit Committee. From September 2010 to October 2011,the Institute of Chartered Accountants of Ontario in 1977 and Alberta in 1991. Mr. Guidry also served onHodgins is a member of the BoardInstitute of Zodiac Exploration Corp., and from October 2009 to March 2014, he served on the board of TransGlobe Energy Corp. Prior to these positions,Corporate Directors.Guidry served as Senior Vice President and subsequently President of Alberta Energy Company International, and President and General Manager of Canadian Occidental Petroleum’s Nigerian operations. Mr. Guidry has directed exploration and production operations in Yemen, Syria and Egypt and has worked for oil and gas companies around the world in the U.S., Colombia, Ecuador, Venezuela, Argentina and Oman. Mr. Guidry is an Alberta-registered professional engineer (P. Eng.) and holds a B.Sc. in petroleum engineering from Texas A&M University.The Nominating and Corporate Governance Committee believes that Mr. Guidry’s extensive experienceHodgins’ 30-plus years in the oil and gas industry as an executive and director and his strong reputation in the Canadian business community brings valuable industry and leadership experience to the Board. The NominatingAs a Chartered Accountant and Corporate Governanceexperienced executive in senior financial roles with several Canadian companies, Mr. Hodgins qualifies as one of Gran Tierra’s Audit Committee also believes that the Board will benefit from Mr. Guidry’s expertise in international operations and internal controls and procedures for financial reporting with respect to both private and public companies, which he has developed through his experience as a senior executive at several publicly traded companies.experts.Board and Committee Participation Position Meetings Attendance Board of Directors Chair 9/9 100% Audit Committee Member 4/4 100% Compensation Committee Member 3/3 100% Nominating and Corporate Governance Committee Member 2/2 100% Year Common Shares DSUs Stock Options 2017 10,000 77,899 85,000 2016 10,000 38,045 85,000 Other Public Board Directorships Committee Position(s)(1) AltaGas Ltd. (TSX) Audit Committee (Chairman)
Governance CommitteeEnerPlus Corporation Audit & Risk Management Committee (Chair)
Corporate Governance & Nominating CommitteeMEG Energy Corp. (TSX) Audit Committee (Chairman)
Compensation Committee(1) The Board of Directors has determined that Mr. Hodgins’ ability to effectively serve on the Company’s Audit Committee is not impaired by his membership on the Audit Committee of the other public boards listed above. 12 Peter DeyMr. Dey has been a member of our Board since May 7, 2015. 
Board and Committee Participation Position Meetings Attendance Board of Directors Member 9/9 100% Nominating and Corporate Governance Committee Chair 2/2 100% Compensation Committee Member 3/3 100% He has been a director of Goldcorp Inc. (listed on the TSX and NYSE) since June 2006, a director of Granite REIT Inc. (listed on the NYSE) since 2011, and is currently a director of the Massachusetts Museum of Contemporary Art. He was a director of Caracal Energy Inc. from March 2013 until its sale in July 2014, a director of Enablence Technologies Inc. from October 2011 to October 2013 and a director of Coventree Inc. from April 2008 to February 2012. Mr. Dey was a Partner of the Toronto law firm Osler, Hoskin & Harcourt LLP, where he specialized in corporate board issues and mergers and acquisitions, from 2001 to 2005, and prior to that from 1985 to 1994 and from 1973 to 1983. From 1994 to 2001, Mr. Dey was Chairman of Morgan Stanley Canada Limited. From 1993 to 1995, Mr. Dey chaired The Toronto Stock Exchange Committee on Corporate Governance in Canada that released the December 1994 report entitled “Where Were the Directors?”, known as the Dey Report. Mr. Dey has also served as Chairman of the Ontario Securities Commission and was Canada’s representative to the OECDOrganisation for Economic Co-operation and Development (“OECD”) Task Force that developed the OECD Principles of Corporate9The Nominating and Corporate Governance Committee recommend Mr. Dey for relelection due to Mr. Dey’s manywhich will provideMr. Dey provides significant value to Gran Tierra. His experience as a former director with other public company boards provides significant value to Gran Tierra.Year Common Shares DSUs Stock Options 2017 20,000 71,120 108,184 2016 20,000 24,253 96,048 Other Public Board Directorships Committee Position(s) None 13 Evan Hazell
Board and Committee Participation Position Meetings Attendance Board of Directors Member 9/9 100% HazellGuidry is a professional engineer and has beenmore than 35 years of experience developing and maximizing assets in the international oil and gas industry. Mr. Guidry has direct experience managing large, international projects, including assets in Latin America, Africa, the Middle-East and Asia. Prior to joining Gran Tierra, Mr. Guidry was the President and Chief Executive Officer of Caracal Energy, a London Stock Exchange listed oil and gas company with operations in Chad, Africa. He held that position from mid-2011 until the company was acquired by Glencore plc for $1.8 billion in mid-2014. In 2014, Mr. Guidry was awarded the Oil Council Executive of the Year award for his leadership role with Caracal. Prior to Caracal, Mr. Guidry was the President and Chief Executive Officer of Orion Oil and Gas (TSX listed), which operated in western Canada from mid-2009 until mid-2011 when it was sold. From May 2005 until December 2008, he was the President and Chief Executive Officer of Tanganyika Oil Company (TSX listed) which operated in Syria and Egypt. Prior to Tanganyika, Mr. Guidry was Chief Executive Officer of Calpine Natural Gas Trust. Mr. Guidry is an Alberta-registered Professional Engineer and a member of our Board since June 24, 2015. the Association of Professional Engineers and Geoscientists. He received a Bachelor of Science in Petroleum Engineering from Texas A&M University in 1980.Year Common Shares RSUs PSUs Stock Options 2017 2,527,000 31,667 638,400 974,700 2016 2,482,000 63,334 312,800 790,500 Other Public Board Directorships Committee Position(s) Africa Oil Corp. Audit Committee ShaMaran Petroleum Corp.(1) (until May 2018) Audit Committee Sterling Resources Ltd.(2) (related company) (1) Mr. Guidry has informed ShaMaran Petroleum Corp. that he will not be standing for re-election at the 2018 annual meeting of ShaMaran Petroleum Corp. (2) Sterling Resources Ltd. purchased all of Gran Tierra’s assets in Peru effective December 18, 2017. The Company retains approximately 45.8% of Sterling’s common shares, and has entered into an investor rights agreement whereby the Company has the right, among other things, to nominate two directors to the board of Sterling. 14 
Board and Committee Participation Position Meetings Attendance Board of Directors Member 9/9 100% Health, Safety and Environment Committee Chair 4/4 100% Reserves Committee Member 3/3 100% At present, he serves as a Director of Oryx Petroleum and Kaisen Energy Corp, as well as non-profit and community organizations YMCA Calgary, Calgary Municipal Land Corporation and Opera America. From 1998 to 2011, Mr. Hazell acted as a managing director at several financial institutions including HSBC Global Investment Bank and RBC Capital Markets. At present he serves as a director of Primavera Resources Corp., Black Swan Energy and Kaisen Energy Corp. Mr. Hazell also serves as a director of a number of non-profit and community organizations including Calgary Municipal Land Corporation, Social Venture Partners Calgary, Opera America, and Pacific Opera Victoria. Mr. Hazell holds a Bachelor of Applied Science degree from Queen'sQueen’s University, a Master of Engineering degree from the University of Calgary, and a Master of Business Administration degree from the University of Michigan, and is licensed as a Professional Engineer in Alberta. He resides in Calgary.The Nominating and Corporate Governance Committee recommendedfor reelection because ofpossesses specific attributes that qualify him to serve as a director, including his extensive experience in the global energy industry as well as in the financial sector, both of which will be ofsector. Mr. Hazell also has significant benefit to Gran Tierra.Robert B. HodginsMr. Hodgins has been a member of our Board since May 7, 2015. Mr. Hodgins held the position of Chairman of the Board of Caracal Energy Inc. until it was purchasedexperience at nonprofit organizations. His education in July 2014 for CDN$1.8 billion. He is a Chartered Accountant, investorbusiness and director with over 30 years of oil and gas industry experience. From 2002 to 2004, Mr. Hodgins was the Chief Financial Officer of Pengrowth Energy Trust of Calgary. Previously, he held positions as Vice-President and Treasurer of Canadian Pacific Limited and Chief Financial Officer of TransCanada PipeLines Limited, both of Calgary. Mr. Hodgins is currently a director of, and serves as Chairman of the Audit Committee for, several public Calgary-based companies including AltaGas Ltd. (formerly Altagas General Partner Inc.), having joined in March 2005, MEG Energy Corp., from September 2010, Enerplus Corporation (listed on the TSX and NYSE, formerly Enerplus Resource Fund), from November 2007, Kicking Horse Energy Inc., from April 2012, and StonePoint Energy Inc., from October 2014. He has also served as a director and Chairman of the Audit Committee of the following companies: Orion Oil & Gas Corporation from January 2010 to July 2011; Cub Energy Inc. from July 2012 to March 2015; MGM Energy Corp. from January 2007 to June 2014; Santonia Energy Inc. from June 2005 to March 2014; Lateral Capital Corp. from October 2012 to August 2013; Skope Energy Inc. from October 2010 to February 2013; and Enerflex Ltd. from July 2004 to January 2010. Mr. Hodgins graduated with a Bachelor of Arts in Business from the Richard Ivey School of Business at the University of Western Ontario in 1975, received a Chartered Accountant designation and was admitted as a member of the Institute of Chartered Accountants of Ontario in 1977 and Alberta in 1991.The Nominating and Corporate Governance Committee recommend Mr. Hodgins for reelection because Mr. Hodgins’ 30-plus years in the oil and gas industry as an executive and director allows him to bring valuable industry experience to the Board. Mr. Hodgins substantial executive experience in senior financial roles with several Canadian companies and strong reputation in the Canadian business communityengineering provides significant value to Gran Tierra.Year Common Shares DSUs Stock Options 2017 55,000 66,887 108,184 2016 55,000 32,667 96,408 Other Public Board Directorships Committee Position(s) None 15 Ronald Royal
Board and Committee Participation Position Meetings Attendance Board of Directors Member 9/9 100% Audit Committee Member 4/4 100% Health, Safety & Environment Committee Member 4/4 100% Reserves Committee Chair 3/3 100% member of our Boardprivate businessman since May 7, 2015.April 2007. Mr. Royal is a private businessman and currently serves on the Board of two public companies, Valeura Energy Inc. since March 2010 and Oando Energy Resources Inc. since April 2015. Mr. Royal is a professional engineer with overhas more than 35 years of experience with Imperial Oil Ltd. and ExxonMobil’s international upstream affiliates. From 2011 to 2014, he served on the Boardboard of directors of Caracal Energy Inc., and prior to 2010, several other boards of private oil companies. Prior to retiring in 2007, Mr. Royal was President and Production Manager of Esso Exploration and Production Chad Inc. and resided in N’Djamena, Chad from 2002 to 2007. In 2003, he was awarded the title “Chevalier de l’Ordre National du Chad” for his contribution to the economic development of Chad. Mr. Royal received his Bachelor of Applied Science from the University of British Columbia in 1972 and completed the Executive Development Program at Cornell University in 1986. He has been a member of the Association of the Professional Engineers Geologists and GeophysicistsGeoscientists of Alberta since 1972.The Nominating and Corporate Governance Committee recommendfor reelection because Mr. Royal’s extensive internationalbrings to the Board over 35 years of experience in the oil and gas industry, having previously held a variety of management positions both domestically and internationally.Year Common Shares DSUs Stock Options 2017 254,667 100,595 108,184 2016 254,667 49,130 96,408 Other Public Board Directorships Committee Position(s) Valeura Energy Inc. 16 
Board and Committee Participation Position Meetings Attendance Board of Directors Member 3/3 100% Health, Safety & Environment Committee Member 1/1 100% Nominating and Corporate Governance Committee Member n/a n/a Reserves Committee Member n/a n/a valuable asset todata analytics and risk assessment company, where she is responsible for leading the Board.
company’s globalization and growth effort in the political, economic, human rights and environmental risk analytics market. Before joining Verisk Maplecroft in 2015, Ms. Scott filled a number of roles at Wood Mackenzie, a global energy, chemicals, renewables, metals and mining research and consultancy company, over a 13-year period. Her most recent position was head of Global Markets where she led a team focusing on macro energy economics and risk. Previously, Ms. Scott led Wood Mackenzie’s energy consultancy practice. Ms. Scott holds a Master of Science, Petroleum Engineering and Economics degree from a joint program with the University of Pennsylvania and the Institut Francais du Petrole (IFP) and received a Bachelor of Arts, Economics and Earth Sciences degree from Wesleyan University.Year Common Shares DSUs Stock Options 2017 0 6,990 85,000 Other Public Board Directorships Committee Position(s) None 1017 David P. SmithMr. Smith has been a member of our Board since May 7, 2015. 
publicenergy and specialty chemicals company, with interests in energy distribution, chemicals and construction products distribution. He previously served as a director of Xinergy Ltd. from December 2010 to February 2013, and of Jannock Properties Ltd. from 2000 to January 2011.since August 2014. From March 2004 to August 2015, Mr. Smith served as Chair of the Audit Committee of Superior Plus Corp. Previously, heMr. Smith was Managing Partner of Enterprise Capital Management Inc. Mr. Smith has extensive experience in the investment banking, investment researchis a Chartered Financial Analyst and management industry. His areas of expertise include investment research, mergers & acquisitions, project finance, privatization and corporate finance. Mr. Smith graduated with honors from the University of Western Ontario with a degree in Business Administration in 1981. He is a Chartered Financial Analyst.The Nominating and Corporate Governance Committee recommendfor reelection because Mr. Smith’s extensivebrings to the Board significant financial expertise, having spent his professional career in investment banking, investment research and management. His experience as the Chairman at Superior Plus Corp. and his previous experience as a director and deep investment knowledge background provides significant valuemember of the audit committee of other public companies provide valuable perspective to Gran Tierra.Tierra’s Board. Mr. Smith’s education and experience qualifies him as one of Gran Tierra’s Audit Committee financial experts.Board and Committee Participation Position Meetings Attendance Board of Directors Member 9/9 100% Audit Committee Chair 4/4 100% Health, Safety & Environment Committee Member 4/4 100% Year Common Shares DSUs Stock Options 2017 187,500 31,682 108,184 2016 130,000 15,473 96,408 Other Public Board Directorships Committee Position(s) Superior Plus Corp. Chairman 18 Brooke WadeMr. Wade has been a member of our Board since June 24, 2015. 
company.company active in private equity, oil and gas, real estate and industrial businesses. From 1994 until the sale of the company in 2005, Mr. Wade was the co-founder and Chairman and Chief Executive Officer of Acetex Corporation, a publicly traded chemical company specializing in acetyls, specialty polymers, and films. In July 2005, Acetex was acquired by Blackstone. Prior to founding Acetex Corporation, Mr. Wade was founding President and Chief Executive Officer of Methanex Corporation, a company created byCorporation. In 1991, Ocelot Industries spun out its oil and gas assets and began a plan of growth through acquisitions to becomeacquisition into what is known today asMethanex Corporation — the world’s largest methanol producer. Prior to joining Ocelot, he was involved in a number of independent business ventures. Mr. Wade currently serves on the board of Kinder Morgan Canada Limited and also serves on the boards of several private companies including Novinium, Inc. He was also a director of the Caracal Energy Inc. board from September 2011 until it was purchased in July 2014. Mr. Wade, Belkin Enterprises Ltd., and is a member of the Advisory Board of NetworkNorthbridge Capital Management Inc.,Partners and is a participant of AEA Investors groups of funds. In addition, Mr. Wade is a member of the World Presidents’ Organization, the Chief Executives Organization, and the Dean'sDean’s Advisory Council of the John F. Kennedy School of Government at Harvard Kennedy School.University and the Buck Advisory Council of The Buck Institute for Research on Aging. Mr. Wade earned a Bachelor of Commerce Degree from the University of Calgary in 1974 and received his Chartered Accountant designation in 1977. In 2012, Mr. Wade became a Fellow of the Institute of Chartered Accountants of British Columbia.The Nominating and Corporate Governance Committee recommends Mr. Wade for reelection becauseBoard and Committee Participation Position Meetings Attendance Board of Directors Member 9/9 100% Compensation Committee Chair 3/3 100% Nominating and Corporate Governance Committee Member 2/2 100% Reserves Committee Member 3/3 100% Year Common Shares DSUs Stock Options 2017 492,600 100,595 108,184 2016 350,000 49,130 96,408 Other Public Board Directorships Committee Position(s) Kinder Morgan Canada Limited
Audit Committee
Health and Safety Committee19 Ofwill act on the Nominating and Corporate Governance Committee’s recommendation within 90 days from the date of the meeting of stockholders and publicly disclose its decision If the Board of Directors RecommendsVote In Favor Of Each Named Nominee.OTHER INFORMATION20 INDEPENDENCE OF THE BOARD OF DIRECTORSSkills and Experience Peter J.
DeyGary S. Guidry
(President
& CEO)Evan
HazellRobert B.
Hodgins
(Chair)Ronald W.
RoyalSondra
ScottDavid P.
SmithBrooke
WadeRelevant Industry Skills Energy Industry Executive Experience ● ● ● ● ● ● ● Health, Safety and Environment Issues ● ● ● ● ● ● Engineering / Geology / Geophysics ● ● ● ● Hydrocarbon Transportation and Marketing ● ● ● ● ● General Business Skills Leadership ● ● ● ● ● ● ● Board Experience ● ● ● ● ● ● ● Finance / Capital Markets ● ● ● ● ● ● Mergers and Acquisitions ● ● ● ● ● ● ● ● Legal and Governance ● ● ● ● ● ● Government and Public Affairs ● ● ● ● ● ● International Experience ● ● ● ● ● ● ● Human Resources and Compensation ● ● ● ● ● ● Information Technology ● ● ● Risk Management ● ● ● ● ● ● Strategic Planning ● ● ● ● ● ● ● ● Accounting /Audit ● ● ● ● ● MKT.American. As required under the NYSE MKTAmerican listing standards, a majority of the members of a listed company’s board of directors must qualify as “independent,” as affirmatively determined by the Board.other than Mr. Guidry,(Peter J. Dey, Evan Hazell, Robert B. Hodgins, Ronald W. Royal, Sondra Scott, David P. Smith and Brooke Wade), are independent directors within the meaning of the applicable NYSE MKTAmerican listing standards. In making this determination, the Board found that none of these directors or nominees for director had a material or other disqualifying relationship with Gran Tierra. Mr. Guidry, Gran Tierra’s President and Chief Executive Officer, is not an independent director by virtue of his employment with Gran Tierra.11BOARD LEADERSHIP STRUCTUREFor the period February 2, 2015 to June 24, 2015, Scott Price acted as Lead Directorthe former Chairman, Jeffrey Scott, was not an independent director effective February 2, 2015. Robert Hodgins was appointed Chairmandefined in Section 10A of the Board on June 24, 2015Exchange Act and the position of lead independent director was discontinued. Mr. Hodgins is an independent director and brings leadership and experience to the Board separate from the Chief Executive Officer. We believe separation of the roles of Chairman and Chief Executive Officer helps preserve our Board’s independence and objectivity and provides an appropriate division of labor between our Chairman and Chief Executive Officer.ROLE OF THE BOARD IN RISK OVERSIGHTGran Tierra’s management is responsible for assessing the risks facing Gran Tierra and evaluating such risks, and the Board provides an oversight role with respect to risk management. At the direction of the Board, at each quarterly meeting of the Board, management makes a presentation to the Board regarding the higher level risks facing Gran Tierra, as well as the actions being taken to ameliorate these risks. The Board then gives direction and guidance to management as to the risks presented and the actions proposed, and reassesses at the next quarterly meeting of the Board.MEETINGS OF THE BOARD OF DIRECTORSThe Board met twenty-five times during the last fiscal year as an entire board. Each Board member attended 75% or more of the aggregate number of meetings of the Board and of the committees on which he served, held during the last fiscal year for which he was a director or committee member. As required under the NYSE MKT listing standards in fiscal 2015, Gran Tierra’s independent directors met in regularly scheduled executive sessions at which only independent directors were present.INFORMATION REGARDING COMMITTEES OF THE BOARD OF DIRECTORSThe Board has five standing committees:an Audit Committee, a Compensation Committee, a Health, Safety and Environment Committee, a Nominating and Corporate Governance Committee, and a Reserves Committee. The following table provides membership and meeting information for the period January 1, 2015 to June 24, 2015 for each committee of the Board:Name Audit Compensation Reserves X X X X X X* X* X X X X* X 3 3 1 1 *Committee Chairperson(1) Mr. Coffield was a director and our chief executive officer and president until February 2, 2015.(2)Mr. Scott resigned from the Audit Committee on February 2, 2015 as he was no longer an independent director.(3)Each of Messrs. Scott, Kirton and Macey ceased to be a member of Board effective June 24, 2015.(4)Mr. Price was a member of the Audit Committee for the period February 2, 2015 to June 24, 2015.(5) There were 14 board meetings held during the period January 1, 2015 to June 24, 2015.12The following table provides membership and meeting information for the period June 24, 2015 to December 31, 2015 for each committee of the Board:Name Audit Compensation Reserves Health, Safety and Environment X X X* X X* X X X X X X X* X X* X X* X X 2 2 0 2 1 (1)Each of Messrs Dey, Hodgins, Royal and Smith joined the Board effective May 7, 2015.(2)Each of Messrs. Hazell and Wade were elected to the Board effective June 24, 2015.(3)Mr. Price will not stand for re-election at the 2016 Annual Meeting. Accordingly, Mr. Price's term as a member of the Board and any committee thereof will expire following the 2016 Annual meeting(4)There were 11 board meetings held during the period June 24, 2015 through December 31, 2015.Below is a description of each committee of the Board. Each of the committees has authority to engage legal counsel or other experts or consultants, as it deems appropriate to carry out its responsibilities. The Board has determined that each member of each committee meets the applicable NYSE MKT rules and regulations regarding “independence” and that each member is free of any relationship that would impair his individual exercise of independent judgment with regard to Gran Tierra.Audit CommitteeThe Audit Committee was establishedset forth by the BoardNYSE American applicable to oversee Gran Tierra’s corporate accounting and financial reporting processes and audits of its financial statements. For this purpose, the Audit Committee performs several functions. The Audit Committee reviews our financial reports and other financial information disclosed to the public, the government and various regulatory bodies, our system of internal accounting, our financial controls, and the annual independent audit of our financial statements. The Audit Committee evaluates the performance of and assesses the qualifications of the independent auditors; determines and approves the engagement of the independent auditors; determines whether to retain or terminate the existing independent auditors or to appoint and engage new independent auditors; reviews and approves the retention of the independent auditors to perform any proposed permissible non-audit services; monitors the rotation of partners of the independent auditors on Gran Tierra’s audit engagement team as required by law; reviews and approves or rejects transactions between Gran Tierra and any related persons; confers with management and the independent auditors regarding the effectiveness of internal controls over financial reporting; establishes procedures, as required under applicable law, for the receipt, retention and treatment of complaints received by Gran Tierra regarding accounting, internal accounting controls or auditing matters and the confidential and anonymous submission by employees of concerns regarding questionable accounting or auditing matters; and meets to review Gran Tierra’s annual audited financial statements and quarterly financial statements with management and the independent auditors, including a review of Gran Tierra’s disclosures under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Although the Audit Committee has the responsibilities set forth above and in the Audit Committee’s written charter, it is not the responsibilitymembers of the Audit Committee to plan or conduct audits or to determine that the Company’s financial statements(ii) Messrs. Wade, Dey and disclosures are complete and accurate and are in accordance with generally accepted accounting principles and applicable laws, rules and regulations.13The Audit Committee is currently composed of four directors: Messrs. Smith (Chair), Dey, Hodgins, and Royal. Jeffrey Scott was a member of the Audit Committee until February 2, 2015, and Scott Price was a member of the Audit Committee from February 2, 2015 to June 24, 2015. The Audit Committee met five times during the fiscal year. The Audit Committee has a written charter that is available to stockholders on Gran Tierra’s website at http://www.grantierra.com.The Board reviews the SEC and NYSE MKT listing standards definition of independence for Audit Committee members and has determined that all members of Gran Tierra’s Audit Committee are independent (as independence is currently established in Rule 803(a)(2) ofunder the standards set forth by the NYSE MKT listing standards). Additionally, each Audit Committee member has met the criteria for audit committee independence set forth in Rule 10A-3 promulgated pursuantAmerican applicable to the Exchange Act. The Board has determined that Mr. Smith, an independent director, qualifies as an “audit committee financial expert” within the meaning of Item 407(d)(5) of Regulation S-K promulgated by the SEC, based on his past experience in the investment banking, investment research and management industry.Report of the Audit Committee of the Board of Directors*The Audit Committee has reviewed and discussed the audited financial statements for the fiscal year ended December 31, 2015, with management of Gran Tierra. The Audit Committee has discussed with the independent registered public accounting firm the matters required to be discussed by Auditing Standard No. 16, Communications with Audit Committees, as adopted by the Public Company Accounting Oversight Board (“PCAOB”). The Audit Committee has also received the written disclosures and the letter from the independent registered public accounting firm required by applicable requirements of the PCAOB regarding the independent accountants’ communications with the audit committee concerning independence, and has discussed with the independent registered public accounting firm the accounting firm’s independence. Based on the foregoing, the Audit Committee has recommended to the Board that the audited financial statements be included in Gran Tierra’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015.David Smith, ChairPeter DeyRobert HodginsRonald Royal*The material in this report is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference in any filing of Gran Tierra under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.Compensation CommitteeThe Compensation Committee is currently composed of three directors: Messrs. Wade (Chair), Dey and Hodgins. Messrs. Macey and Price were members of the Committee until June 24, 2015. All of the members of Gran Tierra’s Compensation Committee are independent (as independence is currently defined in Rule 803(a)(2) of the NYSE MKT listing standards). The Compensation Committee met five times during 2015. The Compensation Committee has a written charter that is available to stockholders on Gran Tierra’s website at http://www.grantierra.com.The Compensation Committee of the Board acts on behalf of the Board to review, recommend for adoption and oversee Gran Tierra’s compensation strategy, policies, plans and programs, including:establishment of corporate and individual performance objectives relevant to the compensation of Gran Tierra’s executive officers, directors, and other senior management, as appropriate, and evaluating performance in light of these stated objectives; establishment of policies with respect to equity compensation arrangements;review of the Company's compensation policies as they relate to risk management and risk-taking incentives to determine whether there is a material adverse effect on the Company.review and approval of the compensation and other terms of employment or service, including severance and change-in-control arrangements, of Gran Tierra’s Chief Executive Officer and the other executive officers; andadministration of Gran Tierra’s equity compensation plans, pension and profit-sharing plans, deferred compensation plans and other similar plan and programs.14Each year, the Compensation Committee reviews with management Gran Tierra’s Compensation Discussion and Analysis and considers whether to recommend that it be included in proxy statements and other filings.Compensation Committee Processes and ProceduresThe Compensation Committee holds regular or special meetings as its members deem necessary or appropriate. The agenda for each meeting is usually developed by the Chair of the Compensation Committee in consultation withand (iii) Ms. Scott and Messrs. Dey, Hodgins and Wade, are independent under the Chief Executive Officer. However, from time to time, various members of management and other employees as well as outside advisors or consultants may be invitedstandards set forth by the Compensation CommitteeNYSE American applicable to makepresentations, to provide financial or otherbackground information or advice or to otherwise participate in Compensation Committee meetings. The Compensation Committee has the authority to retain, amend the engagement with, and terminate any such adviser, as it deems necessary or appropriate to fulfill its responsibilities. The charter of the Compensation Committee grants the Compensation Committee full access to all books, records, facilities and personnel of Gran Tierra. In addition, under the charter, the Compensation Committee has the authority to obtain, at the expense of Gran Tierra, advice and assistance from compensation consultants, internal and external legal, accounting or other advisors and other external resources that the Compensation Committee considers necessary or appropriate in the performance of its duties. The Compensation Committee has direct responsibility for the oversight of the work of any advisers engaged for the purpose of advising the Compensation Committee. In particular, the Compensation Committee has the sole authority to retain compensation consultants to assist in the performance of its duties, including the authority to approve the consultant’s reasonable fees and other retention terms. Under its charter, the Compensation Committee may select, and receive advice from, a compensation consultant, legal counsel or other adviser to the Compensation Committee, other than in-house counsel and certain other types of advisers, only after taking into consideration six factors, prescribed by the SEC and NYSE MKT that bear upon the adviser’s independence; however, there is no requirement that any adviser be independent.After taking into consideration the six factors prescribed by the SEC and NYSE MKT described above, the Compensation Committee retained the services of Lane Caputo Compensation Inc. (the “Compensation Consultant”) as its executive compensation consultant pursuant to a written agreement. The Compensation Consultant reports directly to the Compensation Committee and the Compensation Committee may replace the Compensation Consultant or hire additional consultants at any time. A representative of the Compensation Consultant attends meetings of the Compensation Committee, if requested, and communicates with the Compensation Committee Chair between meetings; however, the Compensation Committee makes all decisions and recommendations to the Board. The Compensation Consultant maintains a group of benchmark peers that the Compensation Committee finds relevant for comparison purposes. Services performed by the Compensation Consultant are pre-approved by the Compensation Committee and any additional work to be performed, including at the request of management, must be pre-approved by the Chair of the Compensation Committee. The Compensation Committee retained the services of Hugessen Consulting effective August 3, 2015 as its executive compensation consultant to meet the Company's corporate governance objectives related to director, management and staff compensation.Under its charter, the Compensation Committee may form, and delegate authority to, subcommittees, as appropriate. In 2015, the Compensation Committee did not form any subcommittees.New performance objectives are generally established at one or more meetings held during the first quarter of the year. Generally, the Compensation Committee’s process comprises two related elements: the recommendation of compensation levels; and the establishment of performance objectives for the current year. In the case of the Chief Executive Officer, the evaluation of his performance is conducted by the Compensation Committee, which determines any adjustments to his compensationas well as awards to be granted. For all executives and directors, as part of its deliberations, the Compensation Committee may review and consider, as appropriate, materials such as financial reports and projections, operational data, tax and accounting information, tally sheets that set forth the total compensation that may become payable to executives in various hypothetical scenarios, executive and director stock ownership information, company stock performance data, analyses of historical executive compensation levels, current company-wide compensation levels, and independent compensation surveys for the petroleum industry in Canada for peer groupings within the industry.THE SPECIFIC DETERMINATIONS OF THE COMPENSATION COMMITTEE WITH RESPECT TO EXECUTIVE COMPENSATION FOR FISCAL 2015 ARE DESCRIBED IN GREATER DETAIL IN THE COMPENSATION DISCUSSION AND ANALYSIS SECTION OF THIS PROXY STATEMENT.15Nominating and Corporate Governance CommitteeThe Nominating and Corporate Governance Committee of the Board is responsible for identifying, reviewing and evaluating candidates to serve as directors of Gran Tierra (consistent with criteria approved by the Board), reviewing and evaluating incumbent directors, recommending to the Board for selection candidates for election to the Board, making recommendations to the Board regarding corporate governance issues, assessing the performance of the Board and management, and developing a set of corporate governance principles for Gran Tierra. In the event that a vacancy on the Board arises, the Nominating and Corporate Governance Committee will seek and identify a qualified director nominee to be recommended to the Board for either appointment by the Board to serve the remainder of the term of the director position that is vacant or election at the next annual meeting of stockholders.The Nominating and Corporate Governance Committee is currently composed of three directors: Messrs. Dey (Chair), Hodgins and Wade. Messrs. Macey, Kirton and Price were members of the Nominating and Corporate Governance Committee until June 24, 2015. All members of the NominatingCommittee.21 Corporate Governance Committee are independent (as independence is currently defined in Rule 803(a)(2) of the NYSE MKT listing standards). The Nominating and Corporate Governance Committee met once during the fiscal year. The Nominating and Corporate Governance Committee has a written charter that is available to stockholders on Gran Tierra’s website at http://www.grantierra.com.The Nominating and Corporate Governance Committee believes that candidates for director should have certain minimum qualifications, including the ability to read and understand basic financial statements and having the highest personal integrity and ethics. The Nominating and Corporate Governance Committee also intends to consider such factors as possessing relevant expertise upon which to be able to offer advice and guidance to management, having sufficient time to devoteNominations to the affairs of Gran Tierra, demonstrated excellence in his or her field, having the ability to exercise sound business judgment and having the commitment to rigorously represent the long-term interests of Gran Tierra’s stockholders. However, the Nominating and Corporate Governance Committee retains the right to modify these qualifications from time to time. Candidates for director nominees are reviewed in the context of the current composition of the Board the operating requirements of Gran Tierra and the long-term interests of stockholders. In conducting this assessment, the Nominating and Corporate Governance Committee considers diversity, age, skills, and such other factors as it deems appropriate given the current needs of the Board and Gran Tierra, to maintain a balance of knowledge, experience and capability. In the case of incumbent directors whose terms of office are set to expire, the Nominating and Corporate Governance Committee reviews these directors’ overall service to Gran Tierra during their terms, including the number of meetings attended, level of participation, quality of performance, and any other relationships and transactions that might impair the directors’ independence. In the case of new director candidates, the Nominating and Corporate Governance Committee also determines whether the nominee is independent for NYSE MKT purposes, which determination is based upon applicable NYSE MKT listing standards, applicable SEC rules and regulations and the advice of counsel, if necessary. The Nominating and Corporate Governance Committee conducts any appropriate and necessary inquiries into the backgrounds and qualifications of possible candidates after considering the function and needs of the Board. The Nominating and Corporate Governance Committee meets to discuss and consider the candidates’ qualifications and then selects a nominee for recommendation to the Board by majority vote. In fiscal 2015, neither the Nominating and Corporate Governance Committee nor the Board paid any fees to any third party to assist in the process of identifying or evaluating director candidates.The Nominating and Corporate Governance Committee does not have a formal policy regarding diversity in identifying nominees for a director. However, in assessing a potential nominee, the Nomination and Corporate Governance Committee considers the professional experience, education, skills and viewpoints of the nominee and how those factors will contribute to expanding the collective knowledge and experience of the Board. The Nominating and Corporate Governance Committee considers that, while nominees should present a good fit with the existing Board in terms of their ability to work together to create stockholder value in a constructive way, diversity in opinion and viewpoint contribute to the overall success of the Board and Gran Tierra as a whole.above,on page 24 in the section Considerations in Evaluating Director Nominees based on whether or not the candidate was recommended by a stockholder. Stockholders who wish to recommend individuals for consideration by the Nominating and Corporate Governance Committee to become nominees for election to the Board may do so by delivering a written recommendation to the Nominating and Corporate Governance Committee at the following address: Gran Tierra Energy Inc., 200, 150-13th900, 520 - 3 Avenue S.W., Calgary, Alberta, T2R 0V2, Canada T2P 0R3, Attention: Director Nominations. This written recommendation must be delivered at least 120 days prior to the anniversary of the mailing of Gran Tierra’s proxy statement for the last annual meeting of stockholders. Submissions must include the full name of the proposed nominee, a description of the proposed nominee’s business experience for at least the previous five years, complete biographical information, a description of the proposed nominee’s qualifications as a director and a representation that the nominating stockholder is a beneficial or record holder of Gran Tierra’s stock. Any such submission must be accompanied by the written consent of the proposed nominee to be named as a nominee and to serve as a director if elected.16Reserves CommitteeThe primary purposethe Reserves Committee is to act on behalf of the Board in fulfilling the Board’s oversight responsibilities with respect to evaluating and reporting on Gran Tierra’s oil and gas reserves.The Reserves Committee oversees Gran Tierra’s (1) annual review of its oil and gas reserves, (2) procedures for evaluating and reporting its oil and gas producing activities, and (3) compliance with applicable regulatory and securities laws relating to the preparation and disclosure of information with respect to its oil and gas reserves. The Reserves Committee also consults with the Audit Committee on matters relating to Gran Tierra’s oil and gas reserves which impact Gran Tierra’s financial statements. The Reserves Committee is composed of four directors: Messrs. Royal (Chair), Hazell, Price and Wade. Mr. Macey was a member of the Reserves Committee until June 24, 2015. Dana Coffield was a member of the Reserves Committee until he ceased to be a director of Gran Tierra effective February 2, 2015. All of the members of the Reserves Committee are independent (as independence is currently defined in Rule 803(a)(2) of the NYSE MKT listing standards). The Reserves Committee met three times during fiscal 2015. The Reserves Committee has a written charter that is available on Gran Tierra’s website at http://www.grantierra.com.Health, Safety and Environment CommitteeThe Health, Safety and Environment Committee was formed June 24, 2015 to assist the Board in fulfilling its responsibilities in relation to environmental, health and safety matters, including monitoring and overseeing the Company's policies and procedures for ensuring compliance with environmental regulatory requirements and ensuring that employees are provided with a safe environment in which to perform their duties. The Health, Safety and Environment Committee is composed of four directors: Evan Hazell (Chair), Ronald Royal, Scott Price and David Smith. The Health, Safety and Environment Committee has a written charter that is available on Gran Tierra’s website at http://www.grantierra.com.VOTING STANDARD FOR ELECTION OF DIRECTORSThe rules of the TSX, which became effective December 31, 2012, require a listed issuer to disclose in the materials sent to its stockholders for a meeting at which directors are to be elected, whether or not it has adopted a majority voting policy and, if not, to explain why it has not adopted such a policy in its meeting materials. A majority voting policy generally requires that a director tender his or her resignation if the director receives more “against” votes than “for” votes at any meeting where stockholders vote on the uncontested election of directors. On February 26, 2016, the Board amended the Company's bylaws to implement a majority voting standard and director resignation policy for uncontested election of directors, which is described under "Majority Voting Standard" at the beginning of Proposal 1, above.COMMUNICATIONS WITH THE BOARD OF DIRECTORSThe Board has adopted a formal process by which stockholders and other interested persons may communicate with the Board or any of its directors. This information is available on Gran Tierra’s website at http://www.grantierra.com.CODE OF ETHICSthe Gran Tierraa Code of Business Conduct and Ethics thatwhich is available in English and Spanish and applies to allevery employee, officer and director. Employees, officers and directors are expected to understand the Code and employees.its application to the performance of his or her business responsibilities. The Code of Business Conduct and Ethics is available on Gran Tierra’sthe Company’s website at http://www.grantierra.com.17PROPOSAL 2ADVISORY VOTE ON EXECUTIVE COMPENSATIONUnder the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), and Section 14A The Board did not grant any waiver of the Exchange Act,Code in favor of a director or executive officer in 2017.22 23 entitledreviewed in the context of the current composition of the Board, the operating requirements of Gran Tierra and the long-term interests of stockholders. Some of the qualifications that the Nominating and Corporate Governance Committee considers include:● independence (as per applicable NYSE American listing standards and applicable SEC rules and regulations) ● relevant industry experience ● excellence in his or her field ● potential conflicts of interest and other commitments ● board experience ● ethics ● diversity of experience 24 votemaintain a balance of knowledge, experience and capability.● the highest personal and professional ethics and integrity ● skills that are complementary to those of the existing Board ● financial literacy ● sound business judgment ● commitment to represent the long-term interests of Gran Tierra’s stockholders approve,Board members or others through business or other relationships. In the case of Sondra Scott, a third-party professional search firm identified her as a potential director nominee.advisory basis,orientation session at which senior management review the Company’s business, strategic plans, its significant financial, accounting and risk management issues, its compliance programs, its Code of Business Conduct and Ethics, its principal officers, and its internal and independent auditors.25 Meetings Attended / Meetings Held (2) Name Board Audit
CommitteeCompensation
CommitteeHealth,
Safety and
Environment
CommitteeNominating
and Corporate
Governance
CommitteeReserves
CommitteeOverall
AttendancePeter J. Dey 9/9 — 3/3 — 2/2 — 100% Gary S. Guidry(1) 9/9 — — — — — 100% Evan Hazell 9/9 — — 4/4 — 3/3 100% Robert B. Hodgins 9/9 4/4 3/3 — 2/2 — 100% Ronald W. Royal 9/9 4/4 — 4/4 — 3/3 100% Sondra Scott(3) 2/2 — — 1/1 — — 100% David P. Smith 9/9 4/4 — 4/4 — — 100% Brooke Wade 9/9 — 3/3 — 2/2 3/3 100% (1) Mr. Guidry is not a member of any committee of the Board as he is not considered to be an independent director. Mr. Guidry participates in various committee meetings; however, each committee holds executive sessions without Mr. Guidry present. (2) Directors who are not members of the committee attended certain of these meetings by invitation. (3) Ms. Scott was appointed to the Board, Nominating and Corporate Governance Committee, Reserves Committee and Health, Safety and Environment Committees effective September 19, 2017. 26 Audit Committee Members: David P. Smith (Chair), Robert B. Hodgins and Ronald W. Royal The Board has determined that each of the members of the Audit Committee satisfies the requirements for audit committee independence and financial literacy under the rules and regulations of the NYSE American and the SEC. The Board has determined that Messrs. Hodgins and Smith are financial experts as per Item 407(d)(5) of Regulation S-K established by the SEC. The Audit Committee held four meetings during the fiscal year ended December 31, 2017. 27 Compensation Committee Members: Brooke Wade (Chair), Peter J. Dey and Robert B. Hodgins The Board has determined that each of the members of the Compensation Committee satisfies the requirements for compensation committee independence under the rules and regulations of the NYSE American and the SEC. The Compensation Committee held three meetings during the fiscal year ended December 31, 2017. 28 Health, Safety and Environment Committee Members: Evan Hazell (Chair), Ronald W. Royal, Sondra Scott and David P. Smith The Board has determined that each of the members of the Health, Safety and Environment Committee satisfies the requirements for independence under the rules and regulations of the NYSE American. The Health, Safety and Environment Committee held four meetings during the fiscal year ended December 31, 2017. Reserves Committee Members: Ronald W. Royal (Chair), Evan Hazell, Sondra Scott and Brooke Wade The Board has determined that each of the members of the Reserves Committee satisfies the requirements for independence under the rules and regulations of the NYSE American. The Reserves Committee held three meetings during the fiscal year ended December 31, 2017. 29 Nominating and Corporate Governance Committee Members: Peter J. Dey (Chair), Robert B. Hodgins, Sondra Scott and Brooke Wade The Board has determined that each of the members of the Nominating and Corporate Governance Committee satisfies the requirements for independence under the rules and regulations of the NYSE American. The Nominating and Corporate Governance Committee held two meetings during the fiscal year ended December 31, 2017. 30 named executive officers as disclosed in this proxy statement in accordance with SEC rules. Atcompensation program for non-executive directors is to attract and retain directors of a quality and nature that will enhance our long-term sustainable profitability and growth. Director compensation is intended to provide an appropriate level of remuneration considering the 2011 annual meetingexperience, responsibilities, time commitment and accountability of stockholders, the stockholders indicated their preference that Gran Tierra solicit a non-binding advisory vote on the compensationroles. Any director who is also an employee of the named executive officers every year. This voteCompany does not receive additional compensation for serving as a director.not intendedreviewed annually by the Nominating and Corporate Governance Committee to address any specific itemensure that it is reasonable in light of compensation, but rather the overall compensation of Gran Tierra’s named executive officers for the last completed fiscal yeartime required from directors and the philosophy, policies and practices described in this proxy statement.The compensation of Gran Tierra’s named executive officers subject to the vote is disclosed in the Compensation Discussion and Analysis, the compensation tables that follow, and the related narrative disclosure contained in this proxy statement. As discussed inaligns directors’ interests with those disclosures, Gran Tierra believes that its compensation policies and decisions are consistent with current market practices and, especially following the implementation of our new equity compensation program in 2016, are focused on pay-for-performance principles that stronglystockholders.named executive officersdirectors with thoseour stockholders by requiring that Directors own a minimum number of shares or Deferred Stock Units (“DSUs” and each a “DSU”). Each non-executive director must hold shares or DSUs with a value equal to three times the annual cash retainer. The shareholdings of each non-executive director are valued using either the closing price of our stockholders. Compensationshares on December 31 each year or the value at the time they were acquired, whichever is greater. Directors have five years to meet the share ownership requirement.Tierra’s named executive officersTierra. Directors who have elected to be paid all or a portion of the annual retainer in DSUs receive their awards on a quarterly basis effective the first day of each quarter. The number of DSUs credited to each director is designedcalculated by dividing the dollar value of the portion of the director’s retainer that he or she has elected to enablebe paid in the form of DSUs by the fair market value on the day of determination. The DSUs vest immediately but are not paid out until the director ceases to be a director of Gran Tierra. The Board has discretion to settle the DSUs in common shares or in a cash amount equal to the market value of common shares at the time of settlement. DSUs are not shares and do not carry voting rights. DSUs received by directors in lieu of cash compensation and held by them represent an at-risk investment in Gran Tierra. The value of DSUs is based on the value of the common shares of Gran Tierra, and therefore is not guaranteed. 2017 Annual
Equity Retainer 2017 Annual Cash Retainer and Travel Fees(1) (DSUs, RSUs, Stock Options)(1) Chairman of the Board $ 73,735 $ 103,627 Director $ 43,842 $ 56,198 Audit Committee Chair $ 35,871 Other Committee Chairs $ 23,914 Committee Members $ 11,957 Travel Fee (over three hours) per meeting $ 1,196 (1) All compensation to non-employee directors is paid in Canadian dollars and converted into U.S. dollars for the purposes of the above table. attract and retain talented and experienced executivesbe a director of Gran Tierra. The number of DSUs, RSUs or stock options credited to lead each director is calculated by dividing the dollar value of the portion of the director’s retainer to be paid in the form of DSUs, RSUs or stock options by the fair market value on the day of determination. A travel fee is paid to each director for travel over three hours to a Board meeting.31 Fees Earned or
Paid in Cash ($)(1)All Other
Compensation ($)(4)Total
($)Peter J. Dey 130,752 5,381 136,133 Evan Hazell 131,999 1,196 133,195 Robert B. Hodgins 209,297 5,978 215,275 Ronald W. Royal 142,254 4,783 147,037 Sondra Scott 38,465 81,919 2,391 122,775 David P. Smith 145,735 5,978 151,713 Brooke Wade 142,254 1,196 143,450 (1) Amounts reported in this column represent Board and committee retainers. Cash fees that were deferred by an election of a director and received in the form of DSUs (Stock Awards) or Option Awards are reported in the table below. All compensation to non-employee directors is paid in Canadian dollars and converted into U.S. dollars for the purposes of the above table. For 2017 compensation amounts, the exchange rate at December 29, 2017 of one U.S. dollar to Canadian $1.2545 is used. Stock Awards Option Awards Cash ($) ($)(2) ($)(3) Peter J. Dey — 117,233 13,519 Evan Hazell 32,881 85,599 13,519 Robert B. Hodgins 109,606 99,691 — Ronald W. Royal — 128,735 13,519 Sondra Scott 22,528 15,937 — David P. Smith 91,670 40,546 13,519 Brooke Wade — 128,735 13,519 (2) Amounts in the Stock Awards column reflect the aggregate grant date fair value of DSUs computed in accordance with GAAP. The Company currently intends to settle the DSUs outstanding as of December 31, 2017 in cash, and, therefore, DSUs are accounted for as liability instruments. The amounts in this column include DSUs which were issued as a result of an election by the directors to be paid a portion of their retainer in the form of DSUs. The value ultimately realized by each director may or may not be equal to this determined value. As of December 31, 2017, each of the non-employee directors had aggregate outstanding DSUs as follows, all of which were fully vested: Mr. Dey – 71,120; Mr. Hazell – 66,887; Mr. Hodgins – 77,899; Mr. Royal – 100,595; Ms. Scott – 6,990; Mr. Smith – 31,682; and Mr. Wade – 100,595. None of the directors hold RSUs. (3) Amounts in the Options Awards column reflect the aggregate grant date fair value computed in accordance with ASC 718. Assumptions made in the valuation of stock options granted are discussed in Note 7 to Gran Tierra’s 2017 Consolidated Financial Statements, which can be found in Item 8 of the Form 10-K filed with the SEC on February 27, 2018. The amounts in this column include stock options which were issued as a result of an election by the directors to be paid a portion of the equity retainer in the form of stock options. As of December 31, 2017, each of the non-employee directors had aggregate outstanding stock options as follows: Mr. Dey – 108,184; Mr. Hazell – 108,184; Mr. Hodgins - 85,000; Mr. Royal – 108,184; Ms. Scott – 85,000; Mr. Smith – 108,184 and Mr. Wade – 108,184. (4) Amounts reported in this column represent fees paid for travel to or from a meeting of the Board in excess of three hours per meeting. 32 successfullyhas introduced a policy requiring directors to acquire common shares and/or DSUs equivalent in a competitive environment.Accordingly,value to three times their annual cash retainer within five years from the Board is askingdate of first election to the stockholders to indicate their supportBoard. The following table sets out the non-executive director share ownership requirements for the compensation of Gran Tierra’s named executive officers as described in this proxy statement by casting a non-binding advisory vote “FOR” the following resolution:“RESOLVED, that the compensation paid to Gran Tierra’s named executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, compensation tables and narrative discussion in this proxy statement, is hereby APPROVED.”Because the vote is advisory, it is not binding on the Board or Gran Tierra. Nevertheless, the views expressed by the stockholders, whether through this vote or otherwise, are important to management and the Board and, accordingly, the Board and the Compensation Committee intend to consider the results of this vote in making determinations in the future regarding executive compensation arrangements.Advisory approval of this proposal requires the affirmative vote of shares representing a majority2017.Ownership Requirement 2017 Chairman of the Board Non-Executive Directors votes presentcurrent Directors have met or have additional time to achieve their share ownership requirements as at December 31, 2017.Name Common
Shares
(#)DSUs
(#)Total Value of
Common Shares
and DSUs (1)
($)Share
Ownership
Requirement
($)Share
Ownership
AchievementShare
Ownership
Requirement
DatePeter J. Dey 20,000 71,120 246,024 131,527 Achieved Feb. 2021 Evan Hazell 55,000 66,887 329,095 131,527 Achieved Feb. 2021 Robert B. Hodgins 10,000 77,899 237,327 221,204 Achieved Feb. 2021 Ronald W. Royal 254,667 100,595 959,207 131,527 Achieved Feb. 2021 Sondra Scott – 6,990 18,873 131,527 In Progress Sept. 2022 David P. Smith 187,500 31,682 591,791 131,527 Achieved Feb. 2021 Brooke Wade 492,600 100,595 1,601,627 131,527 Achieved Feb. 2021 (1) Based on the closing market price of the Company’s shares on December 29, 2017 of $2.70. person or represented by proxy at the meeting and entitled to vote on the matter. Abstentions will have the same effect as a vote "Against." Broker non-votes will have no effect.2017.33 THE BOARD OF DIRECTORS RECOMMENDS18PROPOSAL 3DeloitteKPMG LLP as Gran Tierra’s independent registered public accounting firm for the fiscal year ending December 31, 2016,2018, and has further directed that management submit the selection of independent registered public accounting firm for ratification by the stockholders at the annual meeting. Deloitte LLP has audited Gran Tierra’s financial statements since its inception in 2005. Representatives of Deloitte LLP are expected to be present at the annual meeting. They will have an opportunity to make a statement, if they so desire, and will be available to respond to appropriate questions. DeloitteKPMG LLP as Gran Tierra’s independent registered public accounting firm. However, the Audit Committee of the Board is submitting the selection of DeloitteKPMG LLP to the stockholders for ratification as a matter of good corporate practice. If the stockholders fail to ratify the selection, the Audit Committee of the Board will reconsider whether or not to retain that firm. Even if the selection is ratified, the Audit Committee of the Board in its discretion may direct the appointment of different independent auditors at any time during the year if it determines that such a change would be in the best interests of Gran Tierra and its stockholders.The ratificationstockholders.appointmentBoard of Directors of the Company approved the dismissal of Deloitte LLP (“Deloitte”) as the Company’s independent registered public accounting firm. On March 12, 2018, the Company notified Deloitte of its dismissal effective immediately. Also, on March 12, 2018, the Committee approved the engagement of KPMG LLP (“KPMG”) as the Company’s independent registered public accounting firm. KPMG was formally engaged on March 12, 2018.34 Tierra’sTierra and the independent registered public accounting firm. Management has the responsibility for the preparation of the Company’s financial statements, and the independent registered public accounting firm has the responsibility for 2016, willthe audit of those statements. The Audit Committee has discussed with the independent registered public accounting firm the matters required to be approved if it receives the affirmative vote of shares representing a majoritydiscussed by applicable standards of the votes present in person or representedPublic Company Accounting Oversight Board (“PCAOB”). The Audit Committee has also received the written disclosures and the letter from the independent registered public accounting firm required by proxy atapplicable requirements of the meetingPCAOB regarding the independent accountant’s communications with the Audit Committee concerning independence, and entitled to votehas discussed with the independent registered public accounting firm the accounting firm’s independence. Based on the matter. Abstentions will haveforegoing, the same effect as a vote "Against." We do not expectAudit Committee has recommended to the Board that there willthe audited financial statements be any broker non-votes, as this is a routine matter.35 LLP, our independent registered chartered accountants, for services in the years ended December 31, 20152017 and 2014.2016. In determining the independence of Deloitte, LLP, the Audit Committee considered whether the provision of non-audit services is compatible with maintaining Deloitte LLP’sDeloitte’s independence. Year Ended December 31, (Thousands of U.S. Dollars) 2015 2014 Audit Fees $ 532 $ 1,439 Audit-related Fees 79 — Tax Fees — — All Other Fees 33 310 Total Fees $ 644 $ 1,749 Year Ended December 31, (Thousands of U.S. Dollars) 2017 2016 Audit Fees $ 824 $ 994 Audit-related Fees 109 466 Tax Fees — 51 All Other Fees 42 — Total Fees $ 975 $ 1,511 The totalreimbursementrelated services that are reasonably related to the performance of expensesthe audit or review of the Company’s financial statements or that are traditionally performed by the independent auditor. Audit-Related Fees paid to Deloitte LLPin 2017 were in connection with the Company’s notes offering, dispositions of Brazil and Peru operations, working interest and Block assignments in Colombia, branch wind-ups in Colombia and Mexican bid round. Audit-Related Fees paid to Deloitte in 2016 were in connection with the Company’s equity and convertible notes offerings, acquisitions of Petroamerica and PetroLatina, and working interest and Block assignments in Colombia.audits, reviews of the quarterly financial statements, and the preparation of consents.20152017 related to French translation work and tax consulting performed by Deloitte LLP in connection with: the Company's acquisition of Petroamerica; a working interest assignment in Colombia; and other transaction related projects. Other fees in 2014 included audit support for the sale of our Argentina business unit, IFRS support for Peru and Colombia and regulatory filing support for Colombia.feesservices described above were approved by the Audit Committee.19● the Audit Committee approves the performance by the independent auditors of audit or permitted non-audit services, subject to restrictions in certain cases, based on the Audit Committee’s determination that such services would not be likely to impair the independence of the independent auditors from Gran Tierra; 36 the Audit Committee approves the performance by the independent auditors of auditing or permitted non-audit services, subject to restrictions in certain cases, based on the Audit Committee’s determination that this would not be likely to impair the independence of the independent auditors from Gran Tierra;Gran Tierra’s management must obtain the specific prior approval of our Audit Committee for each engagement of the independent auditors to perform any auditing or permitted non-audit services; andthe performance by the independent auditors of certain types of services (bookkeeping or other services related to the accounting records or financial statements of Gran Tierra; financial information systems design and implementation; appraisal or valuation services, fairness opinions or contribution-in-kind reports; actuarial services; internal audit outsourcing services; management functions or human resources; broker or dealer, or investment adviser or investment banking services; legal services and expert services unrelated to the audit; and any other service that the applicable federal oversight regulatory authority determines, by regulation, is impermissible) is prohibited due to the likelihood that their independence would be impaired.● Gran Tierra’s management must obtain the specific prior approval of our Audit Committee for each engagement of the independent auditors to perform any audit or permitted non-audit services; and ● the performance by the independent auditors of certain types of services (bookkeeping or other services related to the accounting records or financial statements of Gran Tierra; financial information systems design and implementation; appraisal or valuation services, fairness opinions or contribution-in-kind reports; actuarial services; internal audit outsourcing services; management functions or human resources; broker or dealer, or investment adviser or investment banking services; legal services and expert services unrelated to the audit; and any other service that the applicable federal oversight regulatory authority determines, by regulation, is impermissible) is prohibited due to the likelihood that their independence would be impaired. 37 THE BOARD OF DIRECTORS RECOMMENDS20PROPOSAL 4APPROVAL OF A CHANGE IN THE COMPANY'S STATE OF INCORPORATION FROM THE STATE OF NEVADA TO THE STATE OF DELAWAREForAPPROVE NAMED EXECUTIVE OFFICER COMPENSATIONreasons discussed below,Dodd-Frank Wall Street Reform and Consumer Protection Act, and Section 14A of the Exchange Act, Gran Tierra’s stockholders are entitled to vote to approve, on an advisory basis, the compensation of Gran Tierra’s named executive officers as disclosed in this proxy statement in accordance with SEC rules. At the 2017 annual meeting of stockholders, the stockholders indicated their preference that Gran Tierra solicit a non-binding advisory vote on the compensation of the named executive officers every year. Unless the Board has approvedmodifies its policy on the frequency of holding such advisory votes on compensation, the next such vote will occur in 2019. This vote is not intended to address any specific item of compensation, but rather the overall compensation of Gran Tierra’s named executive officers for the last completed fiscal year and declared itthe philosophy, policies and practices described in this proxy statement.advisable anddisclosed in the bestCompensation Discussion and Analysis, the compensation tables that follow, and the related narrative disclosure contained in this proxy statement. As discussed in those disclosures, Gran Tierra believes that its compensation policies and decisions are consistent with current market practices and are focused on pay-for-performance principles that strongly align the interests of Gran Tierra and our stockholders to approve a change in Gran Tierra's state of incorporation from the State of Nevada to the State of Delaware (the “Reincorporation”), which includes the adoption of a new certificate of incorporation and bylaws governing our company, subject to approval by our stockholders.SummaryThe principal effects of the Reincorporation will be that:The affairs of the Company will cease to be governed by Nevada corporation laws and will become subject to Delaware corporation laws;The resulting Delaware corporation (“Gran Tierra-Delaware”) will be the same entity as the Company as currently incorporated in Nevada (“Gran Tierra-Nevada”) and will continuenamed executive officers with all of the rights, privileges and powers of Gran Tierra-Nevada, will possess all of the properties of Gran Tierra-Nevada, will continue with all of the debts, liabilities and obligations of Gran Tierra-Nevada and will continue with the same officers and directors of Gran Tierra-Nevada immediately prior to the Reincorporation, as more fully described below.When the Reincorporation becomes effective, all of our issued and outstanding shares of capital stock will be automatically converted into issued and outstanding shares of capital stock of Gran Tierra-Delaware, without any action on the partthose of our stockholders. The Reincorporation will have no effect on the trading of our shares of common stock on the TSX or NYSE MKT under the same symbol “GTE”. Gran Tierra-Delaware will continue to file periodic reports and other documents as and to the extent required by the rules and regulations of the SEC. Shares of our capital stock that are freely tradeable prior to the Reincorporation will continue to be freely tradeable as sharesCompensation of Gran Tierra-Delaware capital stock,Tierra’s named executive officers is designed to enable Gran Tierra to attract and shares of our capital stock that are subjectretain talented and experienced executives to restrictions priorlead Gran Tierra successfully in a competitive environment.Reincorporation will continue to be subject to the same restrictions as sharescompensation of Gran Tierra-Delaware capital stock. The Reincorporation will not change the respective positions of Gran Tierra or our stockholders under federal securities laws. Pursuant to the Reincorporation, Gran Tierra-Delaware will assume all of Gran Tierra-Nevada’s obligations related to convertible or exchangeable securities and other rights to purchase or receive Gran Tierra-Nevada common stock, including pursuant to the Solana Exchangeable Shares, the Goldstrike Exchangeable Shares and the convertible notes, which shall become the right to purchase or receive the same number of shares of Gran Tierra-Delaware common stock.Upon effectiveness of the Reincorporation, all of our employee benefit and incentive plans will become Gran Tierra-Delaware plans, and each option, equity award or other right issued under such plans will automatically be converted into an option, equity award or right to purchase or receive the same number of shares of Gran Tierra-Delaware common stock, at the same price per share, upon the same terms and subject to the same conditionsTierra’s named executive officers as before the Reincorporation. In addition, our employment contracts and other employee benefit arrangements also will be continued by Gran Tierra-Delaware upon the terms and subject to the conditionsdescribed in effect at the time of the Reincorporation.The Reincorporation will have no effect on the number of shares of common stock, Special A Voting Stock, Special B Voting Stock and preferred stock the Company is authorized to issue. Under the Nevada Articles of Incorporation, the Company is authorized to issue up to 570,000,000 shares of common stock, one share of Special A Voting Stock, one share of Special B Voting Stock and up to 25,000,000 shares of preferred stock. Similarly, the Delaware Certificate of Incorporation authorizes the Company to issue up to 570,000,000 shares of common stock, one share of Special A Voting Stock, one share of Special B Voting Stock and up to 25,000,000 shares of preferred stock.Plan of ConversionTo accomplish the Reincorporation, the Board has adopted a plan of conversion substantially in the form appended to this proxy statement by casting a non-binding advisory vote “FOR” the following resolution:Appendix A (the “Plandisclosed pursuant to Item 402 of Conversion”). The Plan of Conversion provides that we will convert into a Delaware corporationRegulation S-K, including the Compensation Discussion and will thereafter be subject to all of the provisions of the General Corporation Law of the State of Delaware (the “DGCL”).Assuming that our stockholders approve this proposal, we will cause the Reincorporation to be effected as soon as practicable thereafter by filing with the Secretary of State of the State of Nevada articles of conversion substantiallyAnalysis, compensation tables and narrative discussion in the form appended to this proxy statement, as Appendix B (the “Nevada Articles of Conversionis hereby APPROVED.”) and will file withSecretary of State of the State of Delaware21(i) a certificate of conversion substantially in the form appended to this proxy statement as Appendix C (the “Delaware Certificate of Conversion”) and (ii) a certificate of incorporation, which will govern Gran Tierra-Delaware as a Delaware corporation, substantially in the form appended to this proxy statement as Appendix D (the “Delaware Certificate of Incorporation”). In addition, assuming that our stockholders approve this proposal, the Board will adopt Bylaws for Gran Tierra-Delaware, substantially in the form appended to this proxy statement as Appendix E (the “Delaware Bylaws”), and we will enter into a new indemnification agreement with each director and executive officer of Gran Tierra-Delaware based upon provisions of the DGCL, substantially in the form appended to this proxy statement as Appendix F (the “Delaware Indemnification Agreement”). Approval of this proposal by our stockholders will constitute approval of the Plan of Conversion, the Nevada Articles of Conversion, the Delaware Certificate of Conversion, the Delaware Certificate of Incorporation, and thereby authorizing the Board to adopt the Delaware Bylaws and enter into the Delaware Indemnification Agreement with each director and executive officer of Gran Tierra-Delaware. Stockholders should also note that approval of the Reincorporation will also constitute approval of the Company’s equity and other employee benefit and incentive plans continuing as plans of Gran Tierra-Delaware.Notwithstanding the foregoing, the Reincorporation may be delayed byvote is advisory, it is not binding on the Board or Gran Tierra. Nevertheless, the Plan of Conversion may be terminated and abandoned by action of the Board at any time prior to the effective time of the Reincorporation, whether before or after approval by our stockholders, if the Board determines for any reason that such delay or termination would be in the best interests of Gran Tierra and our stockholders. If the Reincorporation is approved by our stockholders, the Reincorporation would become effective upon the filing (and acceptance thereofviews expressed by the Secretary of State of the State of Nevadastockholders, whether through this vote or otherwise, are important to management and the Secretary of State of the State of Delaware, as applicable) of the Nevada Articles of Conversion, the Delaware Certificate of Conversion and the Delaware Certificate of Incorporation.Reasons for the ReincorporationThe primary reason that the Board has approved the Reincorporation is because the corporate laws of the State of Delaware are more comprehensive, widely-used and extensively interpreted than the corporate laws of other states, including Nevada. As a result of the flexibility and responsiveness of the Delaware corporate laws to the legal and business needs of corporations, many major corporations have incorporated in Delaware or have changed their corporate domiciles to Delaware in a manner similar to the Reincorporation that we are proposing. The Delaware judiciary has become particularly familiar with corporate law matters and a substantial body of court decisions has developed construing the laws of Delaware, thus providing greater clarity and predictability with respect to our corporate legal and governance affairs. We believe any benefits provided to the Company by Delaware law directly benefit our stockholders.In deciding to propose the Reincorporation, the Board considered, among others, the following benefits of Delaware law to Gran Tierra and our stockholders:our corporation would be governed by the DGCL, which is generally acknowledged to be the most advanced and flexible corporate statute in the United States;the responsiveness and efficiency of the Division of Corporations of the Secretary of State of the State of Delaware;the Delaware General Assembly, which each year considers and adopts statutory amendments proposed by the Corporation Law Section of the Delaware State Bar Association in an effort to ensure that the corporate statute continues to be responsive to the changing needs of businesses;the Delaware Court of Chancery, which has exclusive jurisdiction over matters relating to the DGCL and in which cases are heard by judges, without juries, who have many years of experience with corporate issues, which can lead to quick and effective resolution of corporate litigation; and the Delaware Supreme Court, which is highly regarded; andthe well-established body of case law construing Delaware law, which has developed over the last century and which provides businesses with a greater degree of predictability than most, if not all, other jurisdictions.The Board is not proposing the Reincorporation to prevent a change in control of Gran Tierra and is not aware of any present attempt by any person to acquire control of Gran Tierra or to obtain representation on the Board.Why You Should Vote for the ReincorporationDelaware is a nationally recognized leader in adopting and implementing comprehensive modern and flexible corporate laws. The DGCL is frequently revised and updated to accommodate changing legal and business needs and is more comprehensive, widely used and interpreted than other state corporate laws, including the Nevada Revised Statutes (the “NRS”).22In addition, Delaware courts (such as the Court of Chancery and the Delaware Supreme Court) are highly regarded for their considerable expertise in dealing with corporate legal issues and for producing a substantial body of case law construing the DGCL, with multiple cases concerning areas that Nevada courts have not considered. Because the judicial system is based largely on legal precedents, the abundance of Delaware case law should serve to enhance the relative clarity and predictability of many areas of corporate law, which in turn may offer added advantages to us by allowing the Board and, management to make corporate decisions and take corporate actions with greater assurance as to the validity and consequences of those decisions and actions.The Reincorporation may also make it easier to attract future candidates willing to serve onaccordingly, the Board because many such candidates are already familiar withand the DGCL, including provisions relatingCompensation Committee intend to director indemnification, from their past business experience.In addition,consider the results of this vote in making determinations in the opinion of the Board, underwriters and other members of the financial services industry may be more willing and better able to assist in capital-raising programs for corporations having the greater flexibility afforded by the DGCL. Certain investment funds, sophisticated investors and brokerage firms may be more comfortable and more willing to invest in a Delaware corporation than in a corporation incorporated in another U.S. jurisdiction whose corporate laws may be less understood and perceived to be unresponsive to stockholder rights.Effects of the ReincorporationApart from being governed by the Delaware Certificate of Incorporation, the Delaware Bylaws and the DGCL, for all other purposes, Gran Tierra-Delaware will be the same entity as Gran Tierra-Nevada immediately prior to the Reincorporation. By virtue of the Reincorporation, all of the rights, privileges and powers of Gran Tierra-Nevada, all property owned by Gran Tierra-Nevada, all debts due to Gran Tierra-Nevada and all other causes of action belonging to Gran Tierra-Nevada immediately prior to the Reincorporation will remain vested in Gran Tierra-Delaware following the Reincorporation. In addition, by virtue of the Reincorporation, all debts, liabilities and duties of Gran Tierra immediately prior to the Reincorporation will remain attached to Gran Tierra-Delaware following the Reincorporation. Gran Tierra-Delaware will remain as the same entity following the Reincorporation, and the Reincorporation will not affect any change in our business, management or operations or the location of our principalfuture regarding executive offices.Upon effectiveness of the Reincorporation, all of our issued and outstanding shares of capital stock will be automatically converted into issued and outstanding shares of capital stock of Gran Tierra-Delaware, without any action on the part of our stockholders. The Reincorporation will have no effect on the trading of our shares of common stock on the NYSE MKT under the same symbol “GTE”. Gran Tierra-Delaware will continue to file periodic reports and other documents as and to the extent required by the rules and regulations of the SEC. Shares of our capital stock that are freely tradeable prior to the Reincorporation will continue to be freely tradeable as shares of Gran Tierra-Delaware capital stock, and shares of our capital stock that are subject to restrictions prior to the Reincorporation will continue to be subject to the same restrictions as shares of Gran Tierra-Delaware capital stock. The Reincorporation will not change the respective positions of Gran Tierra or our stockholders under federal securities laws. Pursuant to the Reincorporation, Gran Tierra-Delaware will assume all of Gran Tierra-Nevada’s obligations related to convertible or exchangeable securities and other rights to purchase or receive Gran Tierra-Nevada common stock, including pursuant to the Solana Exchangeable Shares, the Goldstrike Exchangeable Shares and the convertible notes, which shall become the right to purchase or receive the same number of shares of Gran Tierra-Delaware common stock.Upon effectiveness of the Reincorporation, our directors and officers will become all of the directors and officers of Gran Tierra-Delaware, all of our employee benefit and incentive plans will become Gran Tierra-Delaware plans, and each option, equity award or other right issued under such plans will automatically be converted into an option, equity award or right to purchase or receive the same number of shares of Gran Tierra-Delaware common stock, at the same price per share, upon the same terms and subject to the same conditions as before the Reincorporation. Our employment contracts and other employee benefit arrangements also will be continued by Gran Tierra-Delaware upon the terms and subject to the conditions in effect at the time of the Reincorporation.We believe that the Reincorporation will not affect any of our material contracts with any third parties, and that our rights and obligations under such material contractual arrangements will continue as rights and obligations of Gran Tierra-Delaware.Gran Tierra-Nevada stockholders will not be required to exchange their Gran Tierra-Nevada stock certificates for new Gran Tierra-Delaware stock certificates. Gran Tierra stockholders should not destroy any stock certificate(s) and should not submit any certificate(s) to us or our transfer agent unless and until requested to do so.The Reincorporation will have no effect on the number of shares of common stock, Special A Voting Stock, Special B Voting Stock and preferred stock the Company is authorized to issue. Under the Nevada Articles of Incorporation, the Company is authorized to issue up to 570,000,000 shares of common stock, one share of Special A Voting Stock, one share of Special B Voting Stock and up to 25,000,000 shares of preferred stock. Similarly, the Delaware Certificate of Incorporation authorizes the Company to issue up to 570,000,000 shares23of common stock, one share of Special A Voting Stock, one share of Special B Voting Stock and up to 25,000,000 shares of preferred stock.Mechanism for Reincorporation into DelawareThe process for reincorporating Gran Tierra from Nevada to Delaware calls for the articles of conversion to be filed with the Nevada Secretary of State and for the Delaware certificate of incorporation and a certificate of conversion to be filed with the Delaware Secretary of State at approximately the time desired for the Reincorporation to take effect.Effect of Vote For the ReincorporationA vote in favor of the Reincorporation is a vote in favor of the Plan of Conversion, the Nevada Articles of Conversion, the Delaware Certificate of Conversion, the Delaware Certificate of Incorporation, and thereby authorizing the Board to adopt the Delaware Bylaws and the Delaware Indemnification Agreement. Stockholders should also note that approval of the Reincorporation will also constitute approval of the Company’s equity and other employee benefit and incentive plans continuing as plans of Gran Tierra-Delaware.Effective TimeIf the Reincorporation proposal is approved, the Reincorporation will become effective upon the last to occur of the filing of the Nevada Articles of Conversion filed with the Secretary of State of Nevada and the Delaware Certificate of Conversion and the Delaware Certificate of Incorporation filed with the Secretary of State of Delaware, in each case upon acceptance thereof by the Nevada Secretary of State and the Delaware Secretary of State. If the Reincorporation proposal is approved, it is anticipated that Gran Tierra’s Board will cause the Reincorporation to be effected as soon as reasonably practicable. However, the Reincorporation may be delayed by Gran Tierra’s Board or the Plan of Conversion may be terminated and abandoned by action of the Gran Tierra’s Board at any time prior to the effective time of the Reincorporation, whether before or after the approval by Gran Tierra’s stockholders, if Gran Tierra’s Board determines for any reason that the consummation of the Reincorporation should be delayed or would be inadvisable or not in the best interests of Gran Tierra and its stockholders, as the case may be.Effect of Not Obtaining the Required Vote for ApprovalIf we fail to obtain the requisite vote of stockholders for approval of the Reincorporation from the State of Nevada to the State of Delaware, the Reincorporation will not be consummated and we will continue to be incorporated in Nevada and governed by the NRS, our existing Articles of Incorporation and our existing Bylaws (the “Nevada Bylaws”).Material U.S. Federal Income Tax Consequences of the ReincorporationThe following discussion addresses certain U.S. federal income tax considerations that are generally applicable to U.S. holders (as defined below) of our common stock who receive common stock of Gran Tiera-Delaware in exchange for their common stock of Gran Tierra-Nevada in the Reincorporation. This discussion addresses only those stockholders who hold their common stock as a capital asset within the meaning of Section 1221 of the Internal Revenue Code of 1986, as amended (the “Code”) and does not address all the U.S. federal income tax consequences that may be relevant to particular stockholders in light of their individual circumstances or to stockholders that are subject to special rules, including, without limitation:financial institutions, insurance companies, regulated investment companies or real estate investment trusts;pass-through entities or investors in such entities;tax-exempt organizations;dealers in securities or currencies, or traders in securities that elect to use a mark-to-market method of accounting;persons that hold common stock as part of a straddle or as part of a hedging, integrated, constructive sale or conversion transaction;persons who are not U.S. holders;persons that have a functional currency other than the U.S. dollar;persons who acquired their shares of common stock through the exercise of an employee stock option or otherwise as compensation;persons whose common stock is “qualified small business stock” for purposes of Section 1202 of the Code; andpersons who are subject to the alternative minimum tax.For purposes of this discussion, the term “U.S. holder” means a beneficial owner of common stock that is:a citizen or resident of the United States;24corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized under the laws of the U.S. or any of its political subdivisions;a trust that (1) is subject to the supervision of a court within the U.S. and the control of one or more U.S. persons or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person; oran estate that is subject to U.S. federal income tax on its income regardless of its source.If a partnership (including an entity treated as a partnership for U.S. federal income tax purposes) holds shares of common stock, the U.S. federal income tax consequences to each partner generally will depend on the status of the partner and the activities of the partnership and the partner. Partners holding common stock and partners in such partnerships should consult their own tax advisors with respect to the U.S. federal income tax consequences of the reincorporation.The tax consequences to holders of options to acquire our common stock are also not discussed herein. In addition, the following discussion does not address the tax consequences of transactions effected prior to or after the reincorporation (whether or not such transactions are in connection with the reincorporation).The following discussion is based on the interpretation of the Code, applicable Treasury Regulations, judicial authority and administrative rulings and practice, all as of the date hereof. The Internal Revenue Service (the “IRS”) is not precluded from adopting a contrary position. In addition, there can be no assurance that future legislative, judicial or administrative changes or interpretations will not adversely affect the accuracy of the statements and conclusions set forth herein. Any such changes or interpretations could be applied retroactively and could affect the tax consequences of the Reincorporation to Gran Tierra, Gran Tierra-Delaware and/or our stockholders. A ruling from the IRS will not be requested in connection with the Reincorporation.EACH STOCKHOLDER IS URGED TO CONSULT HIS OR HER OWN TAX ADVISORS TO DETERMINE PARTICULAR FEDERAL TAX CONSEQUENCES TO SUCH STOCKHOLDERS OF THE REINCORPORATION, AS WELL AS THE APPLICABILITY AND EFFECT OF STATE, LOCAL, FOREIGN AND OTHER LAWS.Subject to the limitations, qualifications and exceptions described herein, and assuming the Reincorporation qualifies as a reorganization within the meaning of Section 368(a) of the Code, the U.S. federal income tax consequences of the reincorporation will be as follows:No gain or loss will be recognized by holders of our common stock upon receipt of common stock of Gran Tierra-Delaware pursuant to the Reincorporation;The aggregate tax basis of the common stock of Gran Tierra-Delaware received by each stockholder of Gran Tiera-Nevada in the Reincorporation will be equal to the aggregate tax basis of the common stock of Gran Tierra-Nevada surrendered in exchange therefor;The holding period of the common stock of Gran Tierra-Delaware received by each stockholder of Gran Tierra-Nevada will include the period for which such stockholder held the common stock of Gran Tierra-Nevada surrendered in exchange therefor, provided that such common stock of Gran Tierra-Nevada was held by such stockholder as a capital asset at the time of the Reincorporation; andNo gain or loss will be recognized by Gran Tierra-Nevada or Gran Tierra-Delaware as a result of the Reincorporation.A U.S. holder of shares of our common stock may be required to attach a statement to its tax returns for the year of the Reincorporation that contains the information listed in Treasury Regulation Section 1.368-3(b) and may be required to maintain a permanent record of facts relating to the Reincorporation. Such information includes, among other things, the stockholder’s tax basis in the stockholder’s common stock of Gran Tierra-Nevada and the fair market value of the stockholder’s common stock of Gran Tierra-Nevada immediately prior to the Reincorporation.Accounting TreatmentWe expect that the Reincorporation will have no effect from an accounting perspective because there is no change in the entity as a result of the Reincorporation. As such, the financial statements of Gran Tierra-Nevada previously filed with the SEC will remain the financial statements of Gran Tierra-Delaware following the Reincorporation.Regulatory ApprovalsThe Reincorporation will not be consummated until after stockholder approval is obtained. We will obtain all required consents of governmental authorities, including the filing of the Nevada Articles of Conversion, the Delaware Certificate of Conversion and the Delaware Certificate of Incorporation.25Rights of our Stockholders Prior to and After the Reincorporation from Nevada to DelawareAlthough the Delaware Certificate of Incorporation and the Delaware Bylaws are substantially similar to provisions from the current Articles of Incorporation and Bylaws of Gran Tierra-Nevada, they also include certain provisions that are different from the provisions contained in Gran Tierra’s current Articles of Incorporation and Bylaws. The following discussion briefly summarizes some of the changes resulting from the Reincorporation and the significant differences between the NRS, the current Articles of Incorporation and Bylaws of Gran Tierra-Nevada and the DGCL, the Delaware Certificate of Incorporation and the Delaware Bylaws.The foregoing summary does not purport to be a complete statement of the respective rights of holders of our capital stock and Gran Tierra-Delaware capital stock, and is qualified in its entirety by reference to the NRS and DGCL, respectively, and to the current Articles of Incorporation and Bylaws and to the Delaware Certificate of Incorporation and Delaware Bylaws, respectively.ProvisionNRS and Gran Tierra-Nevada Articles of Incorporationand BylawsDGCL, DelawareCertificate of Incorporationand Delaware BylawsCommentaryAmendment of CharterNevada law requires a vote of the Company’s board of directors followed by the affirmative vote of the majority of shares entitled to vote to approve an amendment to the Articles of Incorporation of Gran Tierra-Nevada.If any proposed amendment would adversely alter or change any preference or any relative or other right given to any class or series of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series adversely affected by the amendment.Delaware law requires a vote of a company’s board of directors followed by the affirmative vote of the majority of shares present in person or represented by proxy and entitled to vote to approve any amendment to the Certificate of Incorporation, unless a greater percentage vote is required by the Certificate of Incorporation.Where a separate vote by class or series is required, the affirmative vote of a majority of the shares of such class or series is required unless the Certificate of Incorporation requires a greater percentage vote.Further, Delaware law states that if an amendment would (i) increase or decrease the aggregate number of authorized shares of a class, (ii) increase or decrease the par value of shares of a class, or (iii) alter or change the powers, preferences or special rights of a particular class or series of stock so as to affect them adversely, the class or series so affected shall be given the power to vote as a class notwithstanding the absence of any specifically enumerated power in the Certificate of Incorporation.In general, the Delaware Certificate of Incorporation requires any amendment to the Certificate of Incorporation in the manner described by the DGCL.26Amendment of BylawsThe NRS provides that, unless otherwise prohibited by any bylaw adopted by the stockholders, the directors may adopt, amend or repeal any bylaw, including any bylaw adopted by the stockholders.The Nevada Bylaws currently provide that a majority of the Board at any duly called regular or special meeting may alter or amend any provisions of the Nevada Bylaws, provided, however that the affirmative vote of the stockholders holding a majority of the voting power shall be required to amend the number of directors and whether to provide for a classified Board. The holders of at least a majority of the shares of the Company entitled to vote in any duly called special or regular meeting shall be required to amend or alter any provision of the Nevada Bylaws.The DGCL states that the power to adopt, amend or repeal a company’s bylaws shall be vested in the stockholders entitled to vote, provided that a company’s certificate of incorporation may confer such power on the board of directors, although the power vested in the stockholders is not divested or limited where the board of directors also has such power.The Delaware Certificate of Incorporation and the Delaware Bylaws expressly empower the Board to adopt, amend or repeal the Delaware Bylaws.The Delaware Bylaws remained consistent with the Nevada Bylaws and provide that a majority of the Board of Directors at any duly called regular or special meeting may alter or amend any provisions of the Delaware Bylaws, provided, however that the affirmative vote of the stockholders holding a majority of the voting power shall be required to amend the number of directors and whether to provide for a classified Board. The holders of at least a majority of the shares of the Company entitled to vote in any duly called special or regular meeting shall be required to amend or alter any provision of the Delaware Bylaws.27Director ElectionsThe Nevada Bylaws provide for an annual election of directors, with the directors to hold office until the next annual meeting of stockholders or until their earlier death, resignation or removal.The Nevada Bylaws provide that election of directors is by a plurality of the votes cast in a contested director election. However, in uncontested director elections, the Nevada Bylaws establish a majority voting standard in which each director will be elected by the vote of the majority of the votes cast with respect to the director. A “majority of votes cast” means that the number of shares cast “for” a director’s election exceeds the number of votes cast “against” that director.In an uncontested election, a director nominee who does not receive a majority of the votes cast will tender his or her resignation to the Board for consideration. The Nominating and Corporate Governance Committee will take action to determine whether to accept or reject the director’s resignation, or whether other action is appropriate, and will make a recommendation to the Board. Within ninety (90) days following the date of the certification of the election results, the Board will act on the Committee’s recommendation and publicly disclose its decision and the rationale for such decision.Similar to the Nevada Bylaws, the Delaware Bylaws provide for an annual election of directors, with the directors to hold office until the next annual meeting of stockholders or until their earlier death, resignation or removal.The Delaware Bylaws similarly provide for plurality voting in a contested director election. However, in uncontested director elections, the Delaware Bylaws establish a majority voting standard in which each director will be elected by the vote of the majority of the votes cast (in person or by proxy) with respect to the director. A “majority of votes cast” means that the number of shares cast “for” a director’s election exceeds the number of votes cast “against” that director.In an uncontested election, a director nominee who does not receive a majority of the votes cast will tender his or her resignation to the Board for consieration. The Nominating and Corporate Governance Committee will take action to determine whether to accept or reject the director’s resignation, or whether other action is appropriate, and will make a recommendation to the Board. Within ninety (90) days following the date of the certification of the election results, the Board will act on the Committee’s recommendation and publicly disclose its decision and the rationale for such decision.The Nevada and Delaware Bylaws both provide for annual director elections.Similarly, the Nevada and Delaware Bylaws both provide for the same standard in the election of directors.Number of Authorized DirectorsThe Nevada Bylaws provide that the Board shall consist of no less than one (1) and no more than nine (9) members, the number may be set by resolution of the Board of Directors.The Nevada Bylaws do not provide stockholders with the right to set the Board size, absent an amendment to the Nevada Bylaws.The Delaware Bylaws provide that the Board shall consist of no less than one (1) and no more than nine (9) members, the number may be set by resolution of the Board of Directors.The Delaware Bylaws do not provide stockholders with the right to set the Board size, absent an amendment to the Delaware Bylaws.The Delaware Bylaws are the same as the Nevada Bylaws.28Filling Vacancies on the Board of DirectorsThe NRS provides that all vacancies, including those caused by an increase in the number of directors, may be filled by a majority of the remaining directors, though less than a quorum, unless it is otherwise provided in the articles of incorporation. Unless otherwise provided in the articles of incorporation, pursuant to a resignation by a director, the board may fill the vacancy or vacancies with each director so appointed to hold office during the remainder of the term of office of the resigning director or directors.The Nevada Bylaws provide that a vacancy occurring in the Board other than for removal may be filled by a majority of the remaining Directors, or a sole remaining director, though less than a quorum. Any vacancy occurring in the Board of Directors by reason of removal shall be filled by a plurality of the votes cast by the holders of shares entitled to vote at a meeting of stockholders at which a quorum is present.The DGCL provides that, unless otherwise provided in the certificate of incorporation or bylaws, vacancies may be filled by a majority of the directors then in office, although less than a quorum, or by a sole remaining director. Further, if, at the time of filling any vacancy, the directors then in office shall constitute less than a majority of the whole board, the Delaware Court of Chancery may, upon application of any stockholder or stockholders holding at least 10% of the total number of the shares at the time outstanding having the right to vote for such directors, summarily order an election to be held to fill any such vacancies or newly created directorships, or to replace the directors chosen by the directors then in office.The Delaware Bylaws provide the same vacancy provisions as the Nevada Bylaws.The Nevada Bylaws and the Delaware Bylaws provide stockholders with similar rights.In addition, the DGCL provides greater protection to the Company’s stockholders by permitting stockholders representing at least 10% of the issued and outstanding shares to apply to the Delaware Court of Chancery to have an election of directors in the situation where the directors in office constitute less than a majority of the whole Board.Removal of DirectorsThe Nevada Bylaws provide that any director may be removed only by the affirmative vote of at least two-thirds of the voting power of all of the then-outstanding voting stock, voting together as a single class.Under the DGCL, although stockholders may generally remove directors with or without cause by the holders of a majority of the shares then entitled to vote at an election of directors, the DGCL provides that the Delaware Certificate of Incorporation may also contain provisions requiring for any corporate action, the vote of a larger portion of the stock than is required by the DGCL.The Delaware Certificate of Incorporation will provide that any director may be removed only by the affirmative vote of at least two-thirds of the voting power of all of the then-outstanding voting stock, voting together as a single class.29Interested Party TransactionsThe NRS provides that no contract or transaction between a company and one or more of its directors or officers, or between a company and any other entity of which one or more of its directors or officers are directors or officers, or in which one or more of its directors or officers have a financial interest, is void or voidable if (a) the director’s or officer’s interest in the contract or transaction is known to the board, committee or stockholders and the transaction is approved or ratified by the board, committee or stockholders in good faith by a vote sufficient for the purpose (without counting the vote of the interested director or officer), (b) the fact of the common interest is not known to the director or officer at the time the transaction is brought before the board, or (c) the contract or transaction is fair to the company at the time it is authorized or approved.The DGCL provides that no contract or transaction between a company and one or more of its directors or officers, or between a company and any other entity of which one or more of its directors or officers are directors or officers, or in which one or more of its directors or officers have a financial interest, is void or voidable if (a) the material facts as to the director’s or officer’s relationship or interest and as to the contract or transaction are disclosed or known to the board or a committee thereof, which authorizes the contract or transaction in good faith by the affirmative vote of a majority of the disinterested directors, even though the disinterested directors are less than a quorum, (b) the material facts as to the director’s or officer’s relationship or interest and as to the contract or transaction are disclosed or known to the stockholders entitled to vote thereon and the contract or transaction is specifically approved in good faith by the stockholders, or (c) the contract or transaction is fair to the company as of the time it is authorized, approved or ratified by the board of directors, a committee thereof or the stockholders.Nevada and Delaware law are substantially similar, with Delaware law providing additional provisions for the approval of related party transactions by stockholders.Stockholder Voting-QuorumThe NRS and the Nevada Bylaws provides that a majority of the voting power, present in person or by proxy at a meeting of stockholders (regardless of whether the proxy has authority to vote on all matters), constitutes a quorum for the transaction of business.The DGCL and the Delaware Bylaws provides that a majority of shares entitled to vote, present in person or by proxy, constitutes a quorum at a stockholder meeting.Nevada and Delaware law and the Nevada and Delaware Bylaws are substantially similar in respect to quorum requirements.30Advance Notice Bylaw ProvisionsThe Nevada Bylaws contain advance notice requirements for business to be brought before an annual or special meeting of stockholders, including nominations of persons for election as directors. As a result, stockholders must satisfy specific timing and information requirements in order to have a proposal considered at or in order to nominate a person for election as a director at an annual or special meeting. Any proposal or nomination that fails to comply with these timing and information requirements may be disqualified.Similarly, the Delaware Bylaws contain advance notice requirements for business to be brought before an annual or special meeting of stockholders, including nominations of persons for election as directors. As a result, stockholders must satisfy specific timing and information requirements in order to have a proposal considered at or in order to nominate a person for election as a director at an annual or special meeting. Any proposal or nomination that fails to comply with these timing and information requirements may be disqualified.The advance notice provisions in the Nevada and Delaware Bylaws the same.Duration of ProxiesUnder the NRS, a proxy is effective only for a period of six months, unless it is coupled with an interest or unless provided otherwise in the proxy, which duration may not exceed seven years.Under the DGCL, a proxy executed by a stockholder will remain valid for a period of three years, unless the proxy provides for a longer period.The statutory default under Delaware law provides for proxies to remain valid for a longer duration than the statutory default under the NRS.31Stockholder Vote for Mergers and Other Corporate ReorganizationsUnder the NRS, a majority of outstanding shares entitled to vote, as well as approval by the board of directors, is required for a merger or a sale of substantially all of the assets of the Company. Generally, Nevada law does not require a stockholder vote of the surviving Company in a merger if: (a) the plan of merger does not amend the existing articles of incorporation; (b) each share of stock of the surviving corporation outstanding immediately before the effective date of the merger is an identical outstanding share after the merger; (c) the number of voting shares outstanding immediately after the merger, plus the number of voting shares issued as a result of the merger, either by the conversion of securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than 20% the total number of voting shares of the surviving domestic corporation outstanding immediately before the merger; and (d) the number of participating shares outstanding immediately after the merger, plus the number of participating shares issuable as a result of the merger, either by the conversion of securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than 20% the total number of participating shares outstanding immediately before the merger.Under the DGCL, a majority of outstanding shares entitled to vote, as well as approval by the board of directors, is required for a merger or a sale of substantially all of the assets of the corporation. Generally, Delaware law does not require a stockholder vote of the surviving corporation in a merger (unless the corporation provides otherwise in its certificate of incorporation) if: (a) the plan of merger does not amend the existing certificate of incorporation; (b) each share of stock of the surviving corporation outstanding immediately before the effective date of the merger is an identical outstanding share after the effective date of the merger; and (c) either no shares of common stock of the surviving corporation and no shares, securities or obligations convertible into such stock are to be issued or delivered under the plan of merger, or the authorized unissued shares or shares of common stock of the surviving corporation to be issued or delivered under the plan of merger plus those initially issuable upon conversion of any other shares, securities or obligations to be issued or delivered under such plan do not exceed 20% of the shares of common stock of such constituent corporation outstanding immediately prior to the effective date of the merger.Nevada and Delaware law are substantially similar in relation to stockholder approval of mergers and other corporate reorganizations.Neither the Nevada Bylaws nor the Delaware Bylaws contain any supermajority voting requirements for mergers or other corporate reorganizations.32Special Meetings of StockholdersUnder the NRS, unless otherwise provided in the articles of incorporation or bylaws, the entire Board, any two directors or the president may call annual and special meetings of the stockholders and directors.The Nevada Bylaws provide that special meetings of stockholders may be called by a majority of the Board, or by the Chairman, or upon the request of the shareholders owning not less than twenty-five percent the outstanding stock entitled to vote at such meeting.Under DGCL, a special meeting of stockholders may be called by the Board or by such persons as may be authorized by the certificate of incorporation or by the bylaws.The Delaware Bylaws provide that a special meeting of stockholders may be called by a majority of the Board, or by the Chairman, or upon the request of the shareholders owning not less than twenty-five percent the outstanding stock entitled to vote at such meeting.The Delaware Bylaws are the same as the Nevada Bylaws.Stockholder Action by Written ConsentThe Nevada Bylaws authorize the Company’s stockholders to act by written consent, except, however, if a different portion of voting power is required by law, the Nevada Articles of Incorporation or the Nevada Bylaws, then that proportion of written consents is required. Any written consent must be signed by stockholders holding Voting Stock representing a majority of votes entitled to be cast at such a meeting.The Delaware Bylaws authorize the Company’s stockholders to act by written consent, except, however, if a different portion of voting power is required by law, the Delaware Articles of Incorporation or the Delaware Bylaws, then that proportion of written consents is required. Any written consent must be signed by stockholders holding Voting Stock representing a majority of votes entitled to be cast at such a meeting.The Nevada Bylaws and the Delaware Bylaws both allow the Company’s stockholders to act by written consent.Failure to Hold an Annual Meeting of StockholdersThe NRS provides that if a corporation fails to elect directors within 18 months after the last election of directors, a Nevada district court will have jurisdiction in equity and may order an election upon petition of one or more stockholders holding at least 15% of the voting power.The DGCL provides that if an annual meeting for election of directors is not held on the date designated or an action by written consent to elect directors in lieu of an annual meeting has not been taken within 30 days after the date designated for the annual meeting, or if no date has been designated, for a period of 13 months after the latest to occur of the organization of the corporation, its last annual meeting or the last action by written consent to elect directors in lieu of an annual meeting, the Court of Chancery may summarily order a meeting to be held upon the application of any stockholder or director.Delaware law provides for a shorter interval than Nevada law (13 months versus 18 months) before a stockholder can apply to a court to order a meeting for the election of directors. Nevada law requires that application be made by a stockholder holding at least 15% of the voting power, whereas Delaware law permits any stockholder or director to make the application.33Adjournment of Stockholder MeetingsUnder the NRS, a company is not required to give any notice of an adjourned meeting or of the business to be transacted at an adjourned meeting, other than by announcement at the meeting at which the adjournment is taken, unless the Board fixes a new record date for the adjourned meeting.Under the DGCL, if a meeting of stockholders is adjourned and the adjournment is for more than 30 days, or if after the adjournment a new record date is fixed for the adjourned meeting, notice of the adjourned meeting must be given to each stockholder of record entitled to vote at the meeting. At the adjourned meeting, the corporation may transact any business which might have been transacted at the original meeting.Delaware law requires companies to provide stockholders of record entitled to vote with notice of the new record date for an adjourned meeting as described.Limitation on Director LiabilityUnder the NRS, unless the articles of incorporation or an amendment thereto provides for greater individual liability, a director or officer is not individually liable to the corporation or its stockholders or creditors for any damages as a result of any act or failure to act in his or her capacity as a director or officer unless it is proven that: (a) the director’s or officer’s act or failure to act constituted a breach of his or her fiduciary duties as a director or officer; and (b) the breach of those duties involved intentional misconduct, fraud or a knowing violation of law.The provisions in the Nevada Bylaws comply with Nevada law as set forth above.Under the DGCL, if a corporation’s certificate of incorporation so provides, the personal liability of a director for breach of fiduciary duty as a director may be eliminated or limited. A corporation’s certificate of incorporation, however, may not limit or eliminate a director’s personal liability (a) for any breach of the director’s duty of loyalty to the corporation or its stockholders, (b) for acts or omissions not in good faith or involving intentional misconduct or a knowing violation of law, (c) for the payment of unlawful dividends, stock repurchases or redemptions, or (d) for any transaction in which the director received an improper personal benefit.The provisions in the Delaware Certificate of Incorporation and Delaware Bylaws comply with Delaware law as set forth above.Delaware law is more extensive in the enumeration of actions under which the Company may not eliminate a director’s personal liability.34Indemnification ProvisionUnder the NRS, a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with the action, suit or proceeding if the person: (a) is not liable pursuant to NRS 78.138; or (b) acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the conduct was unlawful. However, indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper. To the extent that such person has been successful on the merits or otherwise in defense of any proceeding subject to the Nevada indemnification laws, the corporation shall indemnify him or her against expenses, including attorneys’ fees, actually and reasonably incurred by him or her in connection with the defense.The Nevada Bylaws comply with Nevada law as set forth above.Under DGCL, a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with such action, suit or proceeding if: the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person’s conduct was unlawful. With respect to actions by or in the right of the corporation, no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit is brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnification for such expenses which such court shall deem proper. A director or officer who is successful, on the merits or otherwise in defending any proceeding subject to the Delaware corporate statutes’ indemnification provisions shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection therewith.The Delaware Certificate of Incorporation and Delaware Bylaws comply with Delaware law as set forth above.The indemnification provisions of the NRS and the DGCL are substantially similar as both the NRS and the DGCL permit the Company to indemnify officers, directors, employees and agents for actions taken in good faith and in a manner they reasonably believed to be in, or not opposed to, the best interests of the corporation and, with respect to any criminal action, which they had no reasonable cause to believe that such conduct was unlawful.The Company intends to enter into the Delaware Indemnification Agreement with our executive officers and directors based upon the indemnification provisions of the DGCL.35Advancement of ExpensesThe NRS provides that the articles of incorporation, the bylaws or an agreement made by the corporation may provide that the expenses of officers and directors incurred in defending a civil or criminal action, suit or proceeding must be paid by the corporation as they are incurred and in advance of the final disposition of the action, suit or proceeding, upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it is ultimately determined by a court of competent jurisdiction that the director or officer is not entitled to be indemnified by the corporation.The Nevada Bylaws authorize the Company to advance expenses to its officers and directors.Delaware law provides that expenses incurred by an officer or director of the corporation in defending any civil, criminal, administrative or investigative action, suit or proceeding may be paid by the corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such amount if it is ultimately determined that such person is not entitled to be indemnified by the corporation as authorized under the indemnification laws of Delaware. Such expenses may be so paid upon such terms and conditions as the corporation deems appropriate. Under Delaware law, unless otherwise provided in its certificate of incorporation or bylaws, a corporation has the discretion whether or not to advance expenses.Similar to the Nevada Bylaws, the Delaware Bylaws and the Delaware Certificate of Incorporation authorize the Company to advance expenses to its officers and directors. In addition, if the reincorporation is approved, the Company intends to enter into a Delaware Indemnification Agreement with each of its officers and directors to provide for the advancement of expenses.Nevada law and Delaware law are substantially similar in regards to the advancement of expenses.36Declaration and Payment of DividendsUnder the NRS, except as otherwise provided in the articles of incorporation, a board of directors may authorize and the corporation may make distributions to its stockholders, including distributions on shares that are partially paid. However, no distribution may be made if, after giving effect to such distribution: (a) the corporation would not be able to pay its debts as they become due in the usual course of business; or (b) except as otherwise specifically allowed by the articles of incorporation, the corporation’s total assets would be less than the sum of its total liabilities plus the amount that would be needed, if the corporation were to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of stockholders whose preferential rights are superior to those receiving the distribution.Under the DGCL, subject to any restriction contained in a corporation’s certificate of incorporation, the board of directors may declare, and the corporation may pay, dividends or other distributions upon the shares of its capital stock either (a) out of “surplus” or (b) in the event that there is no surplus, out of the net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. Dividends may not be paid if the capital of the corporation is less than the total amount of capital represented by the outstanding stock of all classes having a preference upon the distribution of assets. “Surplus” is defined as the excess of the net assets of the corporation over the amount determined to be the capital of the corporation by the board of directors (which amount cannot be less than the aggregate par value of all issued shares of capital stock).Delaware law is more restrictive than Nevada law with respect to when dividends may be declared and paid.37Business CombinationsThe NRS prohibits certain business combinations between a Nevada corporation and an interested stockholder for two years after such person becomes an interested stockholder. Generally, an interested stockholder is a holder who is the beneficial owner of 10% or more of the voting power of a corporation’s outstanding stock and at any time within three years immediately before the date in question was the beneficial owner of 10% or more of the then outstanding stock of the corporation. After the two year period, business combinations remain prohibited unless they are (a) approved by the board of directors prior to the date that the person first became an interested stockholder or by a majority of the outstanding voting power not beneficially owned by the interested party, or (b) the interested stockholder satisfies certain fair-value requirements. An interested stockholder is (i) a person that beneficially owns, directly or indirectly, 10% or more of the voting power of the outstanding voting shares of a corporation, or (ii) an affiliate or associate of the corporation who, at any time within the past two years, was an interested stockholder of the corporation.The DGCL prohibits, in certain circumstances, a “business combination” between the corporation and an “interested stockholder” within three years of the stockholder becoming an “interested stockholder.” Generally, an “interested stockholder” is a holder who, directly or indirectly, controls 15% or more of the outstanding voting stock or is an affiliate of the corporation and was the owner of 15% or more of the outstanding voting stock at any time within the three-year period prior to the date upon which the status of an “interested stockholder” is being determined. A “business combination” includes a merger or consolidation, a sale or other disposition of assets having an aggregate market value equal to 10% or more of the consolidated assets of the corporation or the aggregate market value of the outstanding stock of the corporation and certain transactions that would increase the interested stockholder’s proportionate share ownership in the corporation. This provision does not apply where, among other things, (i) the transaction which resulted in the individual becoming an interested stockholder is approved by the corporation’s board of directors prior to the date the interested stockholder acquired such 15% interest, (ii) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the outstanding voting stock of the corporation at the time the transaction commenced, or (iii) at or after the date the person becomes an interested stockholder, the business combination is approved by a majority of the board of directors of the corporation and an affirmative vote of at least 66 2/3rds% of the outstanding voting stock at an annual or special meeting and not by written consent, excluding stock owned by the interested stockholder. This provision also does not apply if a stockholder acquires a 15% interest inadvertently and divests itself of such ownership and would not have been a 15% stockholder in the preceding three years but for the inadvertent acquisition of ownership.Nevada law and Delaware law provide for different thresholds in determining whether or not a person is an “interested stockholder.” Under Delaware law, since the threshold is higher, we will be able to engage in certain transactions with stockholders that would otherwise be prohibited under Nevada law.38Control Share Acquisition StatuteUnder the NRS, an acquiring person who acquires a controlling interest in an issuing corporation is prohibited from exercising voting rights on any control shares unless such voting rights are conferred by a majority vote of the disinterested stockholders of the issuing corporation at a special or annual meeting of stockholders. Unless otherwise provided in the articles of incorporation or the bylaws, if the control shares are accorded full voting rights and the acquiring person acquires control shares with a majority or more of all the voting power, any stockholder, other than the acquiring person, who does not vote in favor of authorizing voting rights for the control shares is entitled to dissent and demand payment of the fair value of his or her shares. A controlling interest means the ownership of outstanding voting shares of an issuing corporation sufficient to enable the acquiring person, directly or indirectly and individually or in association with others, to exercise: (i) one-fifth or more but less than one-third; (ii) one-third or more but less than a majority; or (iii) a majority or more, of all the voting power of the corporation in the election of directors. Control shares means those outstanding voting shares of an issuing corporation which an acquiring person: (a) acquires in an acquisition or offer to acquire in an acquisition; and (b) acquires within 90 days immediately preceding the date when the acquiring person became an acquiring person.The control share acquisition statute applies to any acquisition of a controlling interest in a Nevada corporation with 200 or more stockholders of record, at least 100 of whom have addresses in Nevada, unless the articles of incorporation or bylaws of the corporation in effect on the 10th day following the acquisition of a controlling interest by an acquiring person provide that the provisions of those sections do not apply.Delaware does not have a similar statute.Consistent with Delaware law, neither the Delaware Certificate of Incorporation nor the Delaware Bylaws will contain a provision similar to the NRS control share acquisition statute.39Blank Check Preferred StockUnder the Nevada Articles of Incorporation, the Company is authorized to issue up to 25,000,000 shares of preferred stock.The Nevada Articles of Incorporation authorize the Company’s Board of Directors to define the rights, preferences and privileges of the preferred stock prior to issuance.The ability of the Board of Directors to issue and set the rights, preferences and privileges of the preferred stock could make it more difficult or discourage an attempt to obtain control of our Company by means of a merger, tender offer, proxy contest or otherwise, and thereby to protect the continuity of management. If, in the due exercise of its fiduciary obligations, our Board of Directors were to determine that a takeover proposal was not in our best interest, such shares could be issued by the Board of Directors without stockholder approval in one or more transactions that might prevent or render more difficult or costly the completion of the takeover transaction by diluting the voting or other rights of the proposed acquirer or insurgent stockholder group, by putting a substantial voting block in institutional or other hands that might undertake to support the position of the incumbent Board of Directors, by effecting an acquisition that might complicate or preclude the takeover, or otherwise.In addition, the Nevada Articles of Incorporation grant the Company’s Board of Directors broad power to establish the rights and preferences of authorized and unissued shares of preferred stock. The issuance of shares of preferred stock could decrease the amount of earnings and assets available for distribution to holders of shares of common stock. The issuance also may adversely affect the rights and powers, including voting rights, of those holders and may have the effect of delaying, deterring or preventing a change in control of our Company.Under the Delaware Certificate of Incorporation, the Company is authorized to issue up to 25,000,000 shares of preferred stock.The Delaware Certificate of Incorporation will authorize the Company’s Board of Directors to define the rights, preferences and privileges of the preferred stock prior to issuance.The ability of the Board of Directors to issue and set the rights, preferences and privileges of the preferred stock could make it more difficult or discourage an attempt to obtain control of our Company by means of a merger, tender offer, proxy contest or otherwise, and thereby to protect the continuity of management. If, in the due exercise of its fiduciary obligations, our Board of Directors were to determine that a takeover proposal was not in our best interest, such shares could be issued by the Board of Directors without stockholder approval in one or more transactions that might prevent or render more difficult or costly the completion of the takeover transaction by diluting the voting or other rights of the proposed acquirer or insurgent stockholder group, by putting a substantial voting block in institutional or other hands that might undertake to support the position of the incumbent Board of Directors, by effecting an acquisition that might complicate or preclude the takeover, or otherwise.In addition, the Delaware Certificate of Incorporation grants the Company’s Board of Directors broad power to establish the rights and preferences of authorized and unissued shares of preferred stock. The issuance of shares of preferred stock could decrease the amount of earnings and assets available for distribution to holders of shares of common stock. The issuance also may adversely affect the rights and powers, including voting rights, of those holders and may have the effect of delaying, deterring or preventing a change in control of our Company.The Company’s Board of Directors have substantially similar rights under the Nevada Articles of Incorporation and the Delaware Certificate of Incorporation to designate and issue up to 25,000,000 shares of preferred stock.40Taxes and FeesNevada charges corporations incorporated in Nevada nominal annual corporate fees based on the value of the corporation’s authorized stock with a minimum fee of $175, as well as a $200 business license fee, and does not impose any franchise taxes on corporations.Delaware imposes annual franchise tax fees on all corporations incorporated in Delaware. The annual fee ranges from a nominal fee to a maximum of $180,000, based on an equation consisting of the number of shares authorized, the number of shares outstanding and the net assets of the corporation.The maximum annual Delaware franchise tax fee that the Company could be required to pay is $180,000.Dissenters’ RightsUnder the NRS, stockholders are not entitled to dissenters’ rights in connection with a reincorporation if the shares held by the stockholder are of a class or series which is a “covered security” under Section 18(b)(1)(A) or (B) of the Securities Act of 1933, as amended. Because Gran Tierra’s common stock is currently listed on the NYSE MKT, a successor entity to the American Stock Exchange, it satisfies the definition of “covered security”, and stockholders will therefore not be entitled to dissenters’ rights in connection with the Reincorporation.Required Vote and Board of Directors RecommendationApproval of this proposal requires the affirmative vote of a majority of the voting power of the stockholders. Abstentions and broker non-votes have the same effect as a vote "Against."OF DIRECTORSUNANIMOUSLY RECOMMENDS A VOTE IN FAVOR OF PROPOSAL 4.3.38 41ofOf Certain Beneficial Owners andAnd ManagementTierra’sTierra common stock as of February 27, 2016,March 12, 2018 (unless otherwise indicated) by (1) each director and nominee for director; (2) each of the executive officers named in the Summary Compensation Table, (3) each person known by Gran Tierrathe Company to own beneficially own more than 5% of the outstanding shares of the Company’s common stock. Amount and Nature of Beneficial Percentage Name of Person or Identity of Group Ownership of Class(1) Entities affiliated with GMT Capital Corp.(2) 57,259,706 14.86% Luminus Management, LLC(3) 32,908,586 8.54% (1) Based on 385,394,642 shares of common stock outstanding (excluding Exchangeable Shares). (2) Based upon information filed on The System for Electronic Disclosure by Insiders (www.sedi.ca) on January 30, 2018, reporting beneficial ownership as of that date. The address of GMT Capital Corp. is 2300 Windy Ridge Parkway, Suite 550, South Atlanta, GA 30339. (3) Based upon a Schedule 13G/A (Amendment No. 2) filed with the SEC on February 16, 2018 reporting beneficial ownership as of December 31, 2017. The Schedule 13G reports that Luminus Management, LLC has shared voting and dispositive authority with respect to these shares with Luminus Energy Partners Master Fund, Ltd. and Jonathan Barrett. The address of Luminus Management, LLC is 1700 Broadway, 38th Floor, New York, New York 10019. Tierra’sTierra common stock as of March 12, 2018 by (i) each executive officer of Gran Tierra named in the Summary Compensation Table on page 43, (ii) each current director of Gran Tierra (including director nominees) and (4)(iii) all of Gran Tierra’s named executive officers and directors as a group. The table includes directors, director nominees and named executive officersgroup as of the Company before and after the Board and Management transition in May 2015.March 12, 2018. All ownership percentage calculations below assume that all Exchangeable Shares have been converted on a one-for-one basis into corresponding shares of our common stock, as such shares vote together with our common stock on all matters as if shares of our common stock. Percentage of Class 33,313 * Ryan Ellson 220,030 * Gary S. Guidry 2,320,500 * 594,526 * 45,701 * 10,797 * 571,933 * 3,214,412 1.09 108,373 * 10,822 * 120,373 * Lawrence West 200,030 * 1,887,572 * 1,489 * — — 2,413,861 * 19,423,527 6.57 17,286,552 5.85 Directors and executive officers as a group (total of 12 persons) 7,450,810 2.52 Name of Person Common Stock Shares Which May
Be Acquired
Within 60 Days(1) Total Shares
Beneficially Owned(2) Percent of
Outstanding
Common Stock(3) Adrian Coral 0 148,809 148,809 * Peter J. Dey 20,000 165,049 185,049 * Ryan Ellson(4) 266,030 279,333 545,363 * Jim Evans(5) 251,405 160,533 411,938 * Gary S. Guidry 2,527,000 463,500 2,990,500 * David Hardy(6) 78,527 699,100 777,627 * Evan Hazell 55,000 157,774 212,774 * Robert B. Hodgins 10,000 146,930 156,930 * Ronald W. Royal 254,667 195,631 450,298 * Sondra Scott — 19,563 19,563 * David P. Smith(7) 187,500 118,237 305,737 * Brooke Wade(8) 642,600 195,631 838,231 * Lawrence West 245,030 160,533 405,563 * Directors and named executive officers as a group (total of 13 persons) 4,537,759 2,910,623 7,448,382 1.9% * Less than 1%1°%.(1) ExceptIncludes shares which may be acquired as otherwise set forth in this footnote,of or within 60 days after January 12, 2018, upon the exercise of stock options and stock awards held by executive officers and directors.39 (2) Represents the total shares listed under the columns “Common Stock” and “Shares Which May Be Acquired Within 60 Days.” Under SEC rules, beneficial ownership is as of February 27, 2016. Beneficial ownership is calculated basedany date includes any shares as to which a person, directly or indirectly, has or shares, voting power or dispositive power and also any shares as to which a person has the right to acquire such voting or dispositive power as of or within 60 days after such date through the exercise of any stock option or other right.(3) Based on 295,671,584391,302,707 shares of common stock issued and outstanding as of February 27, 2016,March 12, 2018, which, for purposes of this table includes 8,542,0665,908,065 Exchangeable Shares issued and outstanding as of February 27, 2016,March 12, 2018, as such shares are immediately exchangeable for shares of our common stock and vote together with our common stock on all matters as if shares of our common stock.(4) The number of common stock includes 30,000 shares beneficially owned by a person also includes sharesMr. Ellson’s spouse.(5) The number of common stock underlying options or warrants held by that person that are currently exercisable or exercisable within 60 days of February 27, 2016. Theincludes 61,000 shares issuable pursuant to the exercise of those options or warrants are deemed outstanding for computing the percentage ownership of the person holding those options and warrants but are not deemed outstanding for the purposes of computing the percentage ownership of any other person. Unless otherwise indicated, the persons and entities named in the table have sole voting and sole investment power with42respect to the shares set forth opposite that person’s name, subject to community property laws, where applicable. The beneficial ownership by entities affiliated with Amber Capital Management LP is as of December 31, 2015, and the beneficial ownership of entities affiliated with West Face Capital Inc. is as of January 27, 2016; percentage beneficial ownership for each of these are calculated based on the number of shares outstanding as of April 27, 2016, as described above.(2)Consists of 20,000 common shares, 6,883 Deferred Stock Units and 6,430 shares issuable upon exercise of options to acquire shares of common stock exercisable within 60 days of February 27, 2016.(3)Consists of 539,999 shares issuable upon exercise of options to acquire shares of common stock exercisable within 60 days of February 27, 2016, 19,527 shares issuable upon exchange of Exchangeable Shares owned by Mr. Hardy’s spouse and 35,000 shares of common stock owned by Mr. Hardy’sEvans’ spouse. Mr. Hardy disclaims beneficial ownership of the shares owned by his spouse, except to the extent of his pecuniary interest therein.(4)Consists of 30,000 shares, 9,271 Deferred Stock Units and 6,430 shares issuable upon exercise of options to acquire shares of common stock exercisable within 60 days of February 27, 2016.(5)Consists of 10,797 Deferred Stock Units.(6) Mr. Nightingale ceased to be an officer of Gran Tierra on February 19, 2016; however, he remains an employee of the Company until May 31, 2016. Consists of 28,600 shares and 543,333 shares issuable upon exercise of options to acquire shares of common stock exercisable within 60 days of February 27, 2016.(7)Consists of 2,711,080 shares issuable upon exchange of Exchangeable Shares and 503,332 shares issuable upon exercise of options to acquire shares of common stock exercisable within 60 days of February 27, 2016.(8)Consists of 88,000 shares, 13,943 Deferred Stock Units and 6,430 shares issuable upon exercise of options to acquire shares of common stock exercisable within 60 days of February 27, 2016.(9)Consists of 4,392 Deferred Stock Units and 6,430 shares issuable upon exercise of options to acquire shares of common stock exercisable within 60 days of February 27, 2016.(10)Consists of 100,000 shares, 13,943 Deferred Stock Units and 6,430 shares issuable upon exercise of options to acquire shares of common stock exercisable within 60 days of February 27, 2016 .(11)Mr. CoffieldHardy ceased to be an employee or officer of Gran Tierra on February 2, 2015.August 30, 2017. Share ownership is based on last known information provided to the Company. The number of common stock includes 54,527 Exchangeable Shares and common stock owned by Mr. Hardy’s spouse.(12)(7)The number of common stock includes 122,500 shares owned by Mr. Monges ceased to be an employee or officer of Gran Tierra on July 1, 2015. Share ownership is based on last known information provided to the Company.Smith’s spouse.(13)(8)The number of common stock includes 400,000 shares owned by Wade Capital Corporation, a corporation owned by Mr. Rozon ceased to be an employee of Gran Tierra on June 30, 2015. Share ownership is based on last known information provided to the Company.Wade.(14)Mr. Scott ceased to be an employee or officer of Gran Tierra on June 24, 2015. Share ownership is based on last known information provided to the Company.(15)Based upon a Schedule 13G filed February 5, 2016, reporting beneficial ownership as of December 31, 2015. Amber Capital Management LP (“Amber Capital Management”), Amber Capital UK LLP (“Amber UK”), Amber Capital LP (“Amber Capital”), Amber Global Opportunities Master Fund Ltd. (“Amber Global”), and Joseph Oughourlian have shared voting and dispositive power with respect to all of these shares. The address of Amber Capital Management and Amber Global is PO Box 309 Ugland House, Grand Cayman KY1-1104, Cayman Islands. The address of Amber UK and Mr. Oughourlian is 14-17 Market Place, London, United Kingdom W1W 8AJ. The address of Amber Capital is 900 Third Avenue, Suite 1103, New York, NY 10022.(16)Based upon a Schedule 13D filed January 29, 2016, reporting beneficial ownership as of January 27, 2016. The Schedule 13D reports that West Face Capital Inc. and Gregory A. Boland have shared voting and dispositive power with respect to all of these shares. The address of West Face Capital Inc. and Mr. Boland is 2 Bloor Street East, Suite 3000, Toronto, Ontario M4W 1A8.The following table provides certain information with respect to securities authorized for issuance under Gran Tierra’s equity compensation plans in effect as of the end of December 31, 2015:43EQUITY COMPENSATION PLAN INFORMATIONPlan category
outstanding options, warrants and rights (2) Equity compensation plans approved by security holders 13,867,014 4.60 13,498,868 Equity compensation plans not approved by security holders — — — 13,867,014 4.60 13,498,868 (1) Includes shares reserved to be issued pursuant to stock options and restricted stock units (the latter of which may be settled in cash or in shares of our common stock, at our election) granted pursuant to the 2007 Equity Incentive Plan, which is an amendment and restatement of our 2005 Equity Incentive Plan.(2) Exercise price is not applicable to restricted stock units and, as such, restricted stock units are excluded from this column. (3) In accordance with Item 201(d) of Regulation S-K, the figure in this column represents the total number of shares of our common stock remaining available for issuance under our 2007 Equity Incentive Plan as of December 31, 2015, minus the awards reported in column (a), above. Note, pursuant to the terms of the 2007 Equity Incentive Plan, the pool of shares available for grant thereunder is not actually reduced until an award is settled in shares of our common stock (as opposed to reducing the pool at the time of grant). Note further, that the 2007 Equity Incentive Plan provides that the number of shares of our common stock reserved for issuance under the plan shall be reduced by: (i) one share for each share of common stock issued pursuant to a stock option or stock appreciation right and (ii) 1.55 shares for each share of our common stock issued pursuant to an any other type of award granted under the 2007 Equity Incentive Plan that is settled in shares of our common stock. Accordingly, the number of shares available for future awards under the 2007 Equity Incentive Plan may be different than the amount shown in this column. The only equity compensation plan approved by our stockholders is our 2007 Equity Incentive Plan, which is an amendment and restatement of our 2005 Equity Plan.44SECTIONSection 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCEinof their beneficial ownership of common stock and other equity securities of Gran Tierra. Officers, directors and greater than ten percent stockholders are required by SEC regulation to furnish Gran Tierra with copies of all Section 16(a) forms they file.the copies of suchthese reports furnished to Gran Tierra and written representations from these individuals that no other reports were required, during the fiscal year ended December 31, 2015,Gran Tierra believes that all Section 16(a) filing requirements applicable to its officers, directors and greater than ten percent beneficial ownersrequired filings were complied withtimely made in 2017 except that: afor one late Form 4 that was filed on behalf of each of Duncan Nightingale and Adrian CoralSusan Mawdsley with respect to the vesting of a restricted stock unit award; and a late Form 4 was filed on behalf of each of Peter Dey and Ronald Royal in connection with a purchase of shares.EXECUTIVE OFFICERSApril 27, 2016,March 12, 2018, are as follows:Name Age NameAgeTitle Gary S. Guidry 6062 President and Chief Executive Officer Ryan Ellson 4042 Chief Financial Officer Ed Caldwell 68 Vice President, Health, Safety and Environment & Corporate Social Responsibility Adrian Coral 4344 President, Gran Tierra Energy Colombia James Evans 5052 Vice President, Corporate Services David E. Hardy61Vice President, Legal and General CounselAlan Johnson 4547 Vice President, Asset Management Glen Mah 61 Vice President, Business Development Susan Mawdsley 51 Vice President, Finance and Corporate Controller Rodger Trimble 56 Vice President, Investor Relations Lawrence West 5961 Vice President, Exploration "Proposal“Proposal 1, Election of Directors.". Mr. Ellson has been our Chief Financial Officer since May 2015. Mr. Ellson has 1517 years of experience in a broad range of international corporate finance and accounting roles. Mr. Ellson was CFOChief Financial Officer of Onza Energy Inc. from January 2015 to May 2015. From July 2014 until December 2014, Mr. Ellson was Head of Finance for Glencore E&P (Canada), an oil and gas company, and prior thereto Vice President, Finance at Caracal Energy, aan international oil and gas company listed on the London Stock Exchange listed company with operations in Chad, AfricaAfrica. He held that position from August 2011 until the company was acquired by Glencore plc for $1.8 billion in July 2014. Prior40 . has been President, Gran Tierra Energy Colombia, Ltd., a subsidiary of the Company, since August 2014. Mr. Coral joined Gran Tierra in August 2006 as an operations engineer in Gran Tierra Energy Colombia, Ltd., and served in that capacity until February 2007. Mr. Coral rejoined Gran Tierra in August 2008 as Operations Director of Gran Tierra Energy Colombia, Ltd. He served in that capacity until September 2011, when he was promoted to Production Manager of Gran Tierra Energy Colombia, Ltd. Mr. Coral was promoted to Senior Operations Manager of Gran Tierra Energy Colombia, Ltd. in April 2013. On August 1, 2014, Mr. Coral was promoted to President, Gran Tierra Energy Colombia.Colombia, Ltd. Mr. Coral has a total of 1820 years of experience as an engineer or manager in the oil and gas industry. Mr. Coral graduated from the Universidad de América – Bogotá D.C. with a degree as a Petroleum Engineer and from the School of Business Management – Bogotá D.C with degree in Project Management.45. Mr. Evans has been our Vice President, Corporate Services since May 2015. Mr. Evans has over 2028 years of experience including working the last 1012 years in the international oil and gas industry. Most recently, Mr. Evans was the Head of Compliance & Corporate Services for Glencore E&P (Canada), an oil and gas company, from July 2014 to December 2014, and prior thereto Vice President of Compliance & Corporate Services at Caracal Energy, an international oil and gas company, from July 2011 to June 2014, in each case where he oversaw the execution of corporate strategy and goals, developed and implemented a robust corporate compliance program, and managed all aspects of IT,information technology, document control, security and administration. Mr. Evans also managed the recruitment, training and retention of staff in both Calgary and Chad. He oversaw the growth of Caracal Energy from seven employees to in excess of 400 as Caracal Energy exceeded 20,000 barrels of oil per day at the time of sale to Glencore. Prior to Caracal, Mr. Evans held senior management and executive positions at Orion Oil and Gas and Tanganyika Oil, with operating experience in Egypt, Syria and Canada. Mr. Evans is a Certified General Accountant and holds a Bachelor of Commerce degree from the University of Calgary.David Hardy. Mr. Hardy joined Gran Tierra as General Counsel, Vice President Legal and Secretary on March 1, 2010. He has more than 25 years’ experience in the legal profession. Before joining Gran Tierra, he worked for Encana Corporation and for Encana Corporation’s predecessor, Pan Canadian, from 2000 through 2009 where he held various positions, including: Vice President Divisional Legal Services, Integrated Oil and Canadian Plains Divisions; Vice President Regulatory Services, Corporate Relations Division; and Associate General Counsel, Offshore and International Division. For four of his eight years in the Offshore and International Division of Encana, Mr. Hardy led the Legal and Commercial Negotiations Group, where he was responsible for providing strategic legal, commercial and negotiation advice and support to the offshore and international business units. This included dealing with new venture activities and operational, joint venture and host government issues relating to projects in various countries, including Australia, Brazil, Chad, Libya, Oman, Qatar and Yemen. Prior to joining Encana, Mr. Hardy spent over 10 years in private practice and was a partner in a law firm in Calgary, Alberta. He holds a Juris Doctor Degree from the University of Calgary (converted from an LL.B Degree in 2011) and is a member of the Law Society of Alberta and the Association of International Petroleum Negotiators.. Mr. Johnson has been our Vice President, Asset Management since May 2015. Mr. Johnson is a professional engineer with more than 20 years of experience working internationally in the oil and gas industry. His experience includes varied technical, managerial and executive roles in drilling, production, reservoir, reserves, corporate planning and asset management. Most recently Mr. Johnson was Head of Asset Management for Glencore (E&P) CanadaE&P (Canada), an oil and gas company, from April 2014 to April 2015, where he was responsible for all development activities in Chad and prior thereto Director of Asset Management at Caracal Energy, an international oil and gas company, from August 2011 to March 2014, where he was responsible for development activities in the Doba basin in Chad, Africa. Mr. Johnson was instrumental in developing oil and gas assets in remote areas of southern Chad, achieving first production in less than 18 months. Mr. Johnson started his E&Pexploration and production career with Shell International in the Dutch North Sea. He then held positions of increasing responsibility with Shell Canada, APF Energy, Rockyview Energy, Delphi Energy and BG Australia. Mr. Johnson graduated with a 1st Class B.Eng (Hons) from Heriot Watt University in Scotland. Mr. Johnson is a Chartered Engineer in the UK and a Professional Engineer in Alberta.41 . Mr. West has been our Vice President, Exploration since May 2015. Mr. West has35has 35 years of experience as an executive, explorationist, and geologist. Most recently, Mr. West was Vice President, Exploration at Caracal Energy, an international oil and gas company, from July 2011 to June 2014. Mr. West built a multi-disciplinary team to assess resources and grow reserves in the interior rift basins within Chad and led a successful exploration program. During his tenure he successfully executed two large 2D/3D seismic shoots in remote frontier basins, on time and on budget. Prior to Caracal he has been involved in starting and growing several public and private companies, including Reserve Royalty Corp., Chariot Energy, Auriga Energy and Orion Oil and Gas. Lawrence worked at Alberta Energy Company (AEC)(“AEC”), where he was on the team that merged with Conwest. He built and led the AEC East team to the Rocky Mountain USA basins. His career began with Imperial Oil working on prospect and reservoir characterization, in multi-disciplinary teams, and as a technical mentor to exploration teams. LawrenceMr. West has an Honours Bachelor of Science in Geology from McMaster University and an MBA, specializing in economics, from the University of Calgary.42 46EXECUTIVE COMPENSATION AND RELATED INFORMATIONOverviewIn this section, we describe the material components of“named executive officers,” i.e. our executive officers appearingNamed Executive Officers (“NEOs”) who, in the Summary Compensation Table and other compensation tables contained in this Compensation Discussion and Analysis:Name Title at December 31, 2017 •Gary S. GuidryGary S, Guidry, our President and Chief Executive Officer1;•Jeffrey Scott, our former Executive Chairman2;•Dana Coffield, our former President and Chief Executive Officer3;• our Chief Financial Officer 4;•Adrian CoralJames Rozon, our former Chief Financial Officer5;•Duncan Nightingale, our former Executive Vice President6;David Hardy, our Vice President, Legal and General Counsel;•Lawrence West, our Vice President, Exploration7;•Carlos Monges, our former President, Gran Tierra Energy Peru SRL8;Colombia 1.Jim EvansMr. Guidry becameVice President, and Chief Executive Officer on May 7, 2015;Corporate Services 2.Lawrence WestMr. Scott served as our Executive Chairman (our principal executive officer during the transition period from February 2, 2015 until May 7, 2015);3.Mr. Coffield served as our President and Chief Executive Officer until February 2, 2015;4.Mr. Ellson became Chief Financial Officer on May 11, 2015;5.Mr. Rozon served as our Chief Financial Officer until May 11, 2015 and ceased to be an employee of the Company on June 30, 2015;6.Mr. Nightingale served as our Chief Operating Officer from September 1, 2014 to February 2, 2015. On February 2, 2015, Mr. Nightingale was appointed interim President and Chief Executive Officer (but was not considered our principal executive officer during this transition period). Mr. Nightingale served as Executive Vice President from May 7, 2015 until February 19, 2016;7.Mr. West became Vice President, Exploration on May 11, 2015; and8.David HardyMr. Monges served asFormer Vice President, Gran Tierra Energy Peru SRL until July 1, 2015.Legal and General CounselWe also provide an overview of our executive compensation philosophy and our executive compensation program. In addition, we explain how and why our Compensation Committee and our Board arrived at specific compensation policies and decisions involving the named executive officers.Coincident with the transition in Directors, our Executive team underwent a transition in 2015. The newly hired executives, including our named executive officers, were brought in under existing pay programs at the time. See section 2016 Compensation Decisions for a detailed discussion of transitions made to our compensation practices following the Board and Management transition in May 2015.Presentation in U.S. DollarsAll dollar amounts discussed below are in U.S. dollars, except as otherwise noted. Amounts paid in Canadian dollars to our directors and named executive officers other than Mr. Monges, and amounts paid in Peruvian New Soles to Mr. Monges, have been converted into U.S. dollars for the purposes of the discussion below. For additional information regarding the exchange rates used, please see the footnote 1 to the Summary Compensation Table, below.Glossary of Oil and Gas Terms In this document, the abbreviations set forth below have the following meanings:BOEbarrels of oil equivalentMMBOEmillion barrels of oil equivalentBOEPDbarrels of oil equivalent per dayGas volumes are converted to BOE at the rate of 6 Mcf of gas per bbl of oil, based upon the approximate relative energy content of gas and oil. The rate is not necessarily indicative of the relationship between oil and gas prices. BOEs may be misleading, particularly if used47in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.2015 Executive Compensation HighlightsIn February of 2015, to reflect the current economic environment in the oil and gas sector, the Compensation Committee and our Board, respectively, chose to freeze executive salaries and stock option and RSU awards at 2014 levels.In May 2015, West Face Capital oversaw a change in Board and Management that included six director nominees, including Gary Guidry assuming the role of President and Chief Executive Officer. Executives and directors were compensated under the pay programs in place at the time. Since then, the Board has conducted an extensive review of pay philosophy and plan design to align both to the business strategy and risks of the company. The Compensation Committee has recommended and the Board has approved a philosophy whereby the Company will change its focus from primarily issuing stock options and begin to issue Performance Share Units to management and employees and Deferred Share Units to directors. The payouts for Performance Share Units will be based on Total Share Return performance relative to a group of performance peers, absolute growth in NAV/share and execution of strategy as approved by the Board of Directors. In addition, share ownership guidelines were introduced for both the Board and Management.2015 Compensation Governance HighlightsWe endeavor to maintain good governance standards, including with respect to the oversight of our executive compensation policies and practices. Opportunity for Stockholder FeedbackThe Compensation Committee carefully considers feedback from our stockholders regarding our executive compensation program. The process by which stockholders and other interested persons may communicate with the Board or any of its directors is available on Gran Tierra's website at http://www.grantierra.com. In addition, the annual advisory vote on the compensation of the named executive officers provides our stockholders with an opportunity to communicate their views on our executive compensation program.Last year we conducted an advisory vote on executive compensation at our 2015 Annual Meeting. While this vote was advisory and therefore not binding on our Board or our Compensation Committee, we believe that it is important for our stockholders to have an opportunity to express their views regarding our executive compensation philosophy, our compensation policies and programs, and our decisions regarding executive compensation. Our Board and our Compensation Committee value the opinions of our stockholders and, to the extent there is any significant vote against the compensation of our named executive officers as disclosed in this proxy statement, we will consider our stockholders’ concerns and the Compensation Committee will evaluate whether any actions are necessary to address those concerns.At the 2015 annual meeting of stockholders, approximately 96% of the votes cast on the advisory vote on executive compensation were cast in favor of our named executive officer compensation as disclosed in the 2014 proxy statement. The Board and Compensation Committee reviewed these final vote results and determined that, given the significant level of support, no material changes to our executive compensation policies and processes were necessary.The underlying our executive compensation program is to provide an attractive, flexible, and market-based total compensation program that is tied to performance and aligns the interests of our named executive officersNEOs with those of our stockholders. The Company'sCompany’s objective is to recruit and retain the caliber of executive officers and other key employees necessary to deliver sustained high performance to our stockholders as well as economic growth and respect for the communities wherein which we have a strong presence. Our compensation practicesphilosophy also serveserves as a means of communicating our goals and standards of conduct and performance, and for motivating and rewarding our named executive officersNEOs in relation to their achievements. We observeOur compensation philosophy includes the following principles:Hire and retain top caliber executives: Executive officers should have a total compensation package, including base salary and benefits, that is market competitive and that permit us to hire and retain high-caliber individuals at all levels;Pay for performance:principles described below:· Hire and retain top caliber and highly capable executives: Executive officers should have a total compensation package that is market competitive and permits us to hire and retain high-caliber individuals at all levels. · Pay for performance: A significant portion of the annual compensation opportunity for our executive officers should be directly tied to the achievement of key operational and financial measures aligned with our strategy, relative TSR and our share price performance. Directly linking pay with our performance is essential to delivering long-term value to our stockholders. · Create Stockholder Alignment: A significant portion of compensation should be variable (at risk) and equity-based. Executives are also required to meet significant share-ownership guidelines. 43 should be dependent onare made by the Compensation Committee, with input from our annual business performance and each individual’s contribution to that performance;48Reward achievement of short-term objectivesindependent compensation consultants as well as long-term growthfrom our Chief Executive Officer. The specific roles are summarized below:Compensation Committee · Oversees compensation policies, plans and programs, reviews and determines the compensation to be paid to our executive officers and directors annually. · Oversees our annual and long-term incentive plans and programs and periodically assesses our non-employee director compensation program. · Approves the goals of our Chief Executive Officer, evaluates our Chief Executive Officer’s performance in light of those goals and objectives and recommends to the Board the approval of the Chief Executive Officer’s annual compensation. · Together with our Chief Executive Officer, reviews and approves the corporate performance goals and objectives of our other NEOs and recommends to the Board the approval of the annual compensation package for the other NEOs. · Holds executive sessions with no management present. Board · Reviews Chief Executive Officer’s performance. · Approves Chief Executive Officer and NEO compensation. Independent Compensation Consultants · Provides the Compensation Committee with independent advice concerning the types and levels of compensation to be paid to our Chief Executive Officer and the other NEOs. · Provides market compensation data (e.g., industry compensation surveys and benchmarking data) on base salary, annual incentives and long-term incentives and industry trends. Chief Executive Officer · Reviews performance of other NEOs with the Compensation Committee. · Makes recommendations on base salary, annual bonus and long-term incentives awards for the other NEOs. profitability: Executive officers should be rewarded for achieving both short-term objectives as well as long-term results to encourage a balanced approach to growth and to aligned the interests of our named executive officers with those of our stockholders; andLimit perquisites: Perquisites for our executive officers should be minimized and limited to items that serve a reasonable business purpose.Compensation ProcessThe Compensation Committee is responsible for overseeinghold regular executive sessions at the Company's compensation policies, plans and programs and to review and determineend of each meeting with no representatives of the compensation to be paid to the Company's executive officers and directors. The Committee approves the goals of themanagement team present. Our Chief Executive Officer and evaluatesdoes not attend any portion of the Compensation Committee or Board meeting at which his compensation is deliberated or approved. Except as described in the table above, our Chief Executive Officer's performance in light of those goals and objectives. Officer does not play any role with respect to any matter affecting his own compensation.Committee recommends toagenda for each meeting is usually developed by the Board the approvalChair of the annual compensation forCompensation Committee, in consultation with the Chief Executive Officer. However, from time to time, various members of management and other employees as well as outside advisors or consultants may be invited by the Compensation Committee to make presentations, to provide financial or other background information or advice or to otherwise participate in Compensation Committee meetings. The Committee also reviews with the Chief Executive Officer and approves the corporate performance goals and objectivescharter of the Company'sCompensation Committee grants the Compensation Committee full access to all books, records, facilities and personnel of Gran Tierra. In addition, under the charter, the Compensation Committee has the authority to obtain, at the expense of Gran Tierra, advice and assistance from compensation consultants, internal and external legal, accounting or other executive officers.advisors and other external resources that the Compensation Committee considers necessary or appropriate in the performance of its duties. The Compensation Committee recommends tohas direct responsibility for the Board the approvaloversight of the annual compensation packagework of any advisers engaged for the other executive officers.20142017 performance, as well as the consideration of salary increases for 2015,2018, were recommended by the Compensation Committee and approved by the Board in FebruaryJanuary of 2015. Annual bonuses in respect2018.44 2015Company Performancewere recommended bymeasures to establish total compensation ranges relative to our performance and the performance of our comparator groups as outlined on the following page. In addition, the Compensation Committee approved by the Board,establishes specific performance measures that determine payouts under cash and paid in March of 2016.Role of ManagementBased on management’s review of market competitive positions, each year our Chief Executive Officer recommends the level of base salary increase (if any), the annualequity-based incentive award, and the long-term incentive award value for each of the named executive officers, including himself. These recommendations are based upon his assessment of each executive officer’s performance (including his own), the performance of the individual’s respective business or function, and employee retention considerations. The Compensation Committee reviews our Chief Executive Officer’s recommendations, along with all other relevant information, and deliberates as to whether any compensation changes should be made affecting our named executive officers. Following this deliberation, it determines, in its sole discretion, its recommendations to be made to the Board for approval. Our Chief Executive Officer does not attend any portion of the Board meeting at which his compensation is deliberated or approved. Except as described in this paragraph, our Chief Executive Officer does not play any role with respect to any matter affecting his own compensation.advisorsconsultants and scope of services provided by them are assessed on an annual basis.In recent years, including 2015,directlyfor payment of reasonable compensation to any independent compensation consultants or other external advisors retained the services of Lane Caputo Compensation Inc. (“Lane Caputo”) as its executive compensation consultant. Lane Caputo reports directly toby the Compensation Committee. During the first few months of 2015, representatives of Lane Caputo attended meetings of2017, the Compensation Committee engaged the independent compensation consultant for limited services such as requested, and communicated withLTIP measurement. In 2017, the Compensation Committee Chair between meetings; however, theevaluated whether any work provided by its Compensation Committee made all decisionsconsultant raised any conflict of interest and recommendations to the Board. Lane Caputo has developed and maintained a group of peer companies and provided data regarding the compensation paid by those companies to their executive officersdetermined that theit did not.finds relevant for comparison purposes. Services performed by Lane Caputo were pre-approved by the Compensation Committee and any additional work to be performed for us, including at the request of management, was pre-approved by the Chair of the Compensation Committee.The Compensation Committee assessed the performance and independence of Lane Caputo and of each individual employee of the consulting firm who directly provides services to Gran Tierra. In January 2015, the Compensation Committee considered whether Lane Caputo could serve as an independent advisor to the Compensation Committee. As part of this determination, the Compensation Committee requested information from Lane Caputo about potential conflicts of interest. After taking into consideration the six factors prescribed by the SEC and NYSE MKT, the Compensation Committee concluded that there were no actual conflicts of interest with respect to Lane Caputo providing services to the Compensation Committee. The following specific factors were considered in making this determination:49Lane Caputo reported directly to the Compensation Committee and the Compensation Committee had the sole power to terminate or replace any of its compensation advisors at any time;Lane Caputo provided minimal other services to Gran Tierra;Any business or personal relationships between Lane Caputo, on one hand, and any member of the Compensation Committee or executive officer, on the other hand (no such relationships reported by Lane Caputo);Whether Lane Caputo or any of its representatives owned any shares of Gran Tierra’s stock (no shares owned by Lane Caputo or any of its representatives);The content of Lane Caputo’s own policies on ethics and conflicts of interest; andThe aggregate fees paid by Gran Tierra to Lane Caputo, as a percentage of the total revenue of Lane Caputo.In August 2015, Hugessen Consulting was retained by the Compensation Committee as its executive compensation consultant to meet the Company's corporate governance objectives related to director, management and staff compensation. The Compensation Committee considered whether Hugessen Consulting would meet the definition of an independent advisor and concluded that there were no actual conflicts of interest with respect to Hugessen Consulting providing services to the Compensation Committee. We have implemented certain recommendations from Hugessen Consulting in 2016, which are discussed in greater detail in the section of this proxy statement entitled "2016 Compensation Actions".Use of Peer Data2015 Compensation StructureThe Compensation Committee relies on various sources of compensation information to ascertain the competitive market for our named executive officers. To assist in establishing recommendations for our 2015 executive compensation structure, base salaries and target bonuses, Lane Caputo measured the compensation paid to our named executive officers against the compensation provided by a relevant group of industry peers to similarly situated officers (the “Custom Peer Group”). Although it would have been preferable to only include peers that compete with us in the international energy arena, our relative size, and the lack of sufficient international peers of similar size, dictated that peers with domestic operations of similar size be included in the peer group, and, in fact, such domestic peers are predominate in the group. As a result, the Custom Peer Group included peers of a similar size to us based on market capitalization and average daily production volumes, and included peers with operations located both internationally and domestically. The Custom Peer Group used in 2015 was substantially similar to the 2014 Custom Peer Group. The Custom Peer Group used in 2015 was revised slightly from 2014 by removing Niko Resources Ltd. (the size of its operations were no longer comparable) and Petrominerales Ltd. (due to its acquisition) and adding Bellatrix Exploration Ltd. and Canacol Energy Ltd. The Custom Peer Group used in 2015 consisted of the following 20 companies:Bankers Petroleum Ltd.Crew Energy Inc.Pengrowth Energy Corp.Baytex Energy Corp.Enerplus Corp.Peyto Exploration & Development Corp.Bellatrix Exploration Ltd.Legacy Oil & Gas Inc.Transglobe Energy Corp.Birchcliff Energy Ltd.Lightstream Resources Ltd.Trilogy Energy Corp.Bonavista Energy Corp.NuVista Energy Ltd.Vermilion Energy Inc.Bonterra Energy Corp.Paramount Resources Ltd.Whitecap Resources Inc.Canacol Energy Ltd.Parex Resources Inc.In making 2015 compensation decisions for Mr. Monges, who was located in Peru, the Compensation Committee also utilized the Mercer 2014 Compensation Survey (Colombia and Peru) and the Mercer 2014 Peru Total Remuneration Survey (Peru) to better understand the local pay practices in Peru.Given the extensive research and analysis used to develop the peer benchmark group, the Compensation Committee was confident that the market data used provided a useful guide for comparative purposes. The Compensation Committee recognized that a successful compensation program also required an application of judgment to maintain a subjective determination of individual performance by our executive officers. Therefore, the Compensation Committee applied its judgment in reconciling the program’s objectives and peer comparisons with the realities of rewarding excellent performance and retaining valued employees.Elements of Compensation50Our compensation program is comprised of three primary elements of compensation: base salary, annual cash bonus and equity incentive awards. Each component has a different purpose.The Compensation Committee believes that base salaries at this stage of our growth and especially within the international exploration and production sector, must be competitive to retain the best executives. Short-term cash bonuses are a common element of compensation in our industry and among our peers with whom we compete for executive talent and emphasize the achievement of shorter-term individual and company-wide goals. The Compensation Committee believes that principal performance incentives should be granted in the form of long-term equity incentives given the longer-term nature of our business plan. Long-term incentives are delivered in the form of stock options and RSUs. The Compensation Committee believes that the combination of all three elements of compensation encourages our named executive officers to take a strong but balanced approach to growth and development. The Compensation Committee ultimately determined the optimal allocation among the three forms of compensation relative to our peers for each executive position, taking into account the contributions of each executive officer and our operational and financial goals and achievements. The Compensation Committee did not use a formula to establish the allocation between base salary, target bonus and long term incentives; rather, this allocation has been based on the consensus among the members of the Compensation Committee, all of whom have significant experience in the oil and gas exploration business. Actual bonuses were determined based on the subjective determination by the Compensation Committee and the Board of the achievement of goals established at the beginning of the year.SalaryThe Compensation Committee established 2015 base salaries after considering the market data presented by Lane Caputo, the very competitive nature of the international exploration and production sector, and the corresponding shortage of experienced executive talent, particularly in Calgary, Canada, Gran Tierra’s headquarters. The Compensation Committee determined that a general target of the 65th percentile of base salaries paid to similarly situated executives of companies included in the Custom Peer Group was appropriate to retain the services of our executive officers, with the exact amount determined by the Compensation Committee’s subjective assessment of the appropriate salary for each named executive officer given their performance and level of responsibility within Gran Tierra.In January of 2015, the Compensation Committee recommended to the Board, and the Board approved, the following annual salaries (USD) for 2015:Name Dana Coffield $ 331,647 $ 331,647 James Rozon $ 248,916 $ 248,916 Duncan Nightingale $ 267,052 $ 242,775 David Hardy $ 231,936 $ 231,936 Carlos Monges $ 212,233 $ 207,980 (1)Amounts differ from the amounts reported in Gran Tierra’s Form 8-K filed with the Securities and Exchange Commission on February 25, 2015, as in that filing the conversion from Canadian dollars to U.S. dollars was calculated at the exchange rate at December 31, 2014. The exchange rate used for the table above was the exchange rate at December 31, 2015, of one US dollar to Canadian $1.3840.(2) For ease of comparison, amounts reported in this column are also converted from Canadian dollars and Peruvian New Soles at the exchange rate at December 31, 2015.2015 salary for each of Messrs. Coffield, Rozon, and Hardy was unchanged from 2014 while Mr. Monges was positioned at the 65th percentile of the relevant local market data. Mr. Nightingale's salary increased 10% in 2015; however, no new compensation arrangements were made in connection with Mr. Nightingale’s promotion to Interim President and Chief Executive Officer effective February 2, 2015.On February 2, 2015, in connection with Jeffrey Scott's appointment as Executive Chairman, the Board approved the following compensation:Name 2015 Salary 2014 Salary Jeffrey Scott $ 260,116 $ — On May 7, 2015, Mr. Scott's position was changed to Director but his salary as Executive Chairman continued until June 24, 2015.Mr. Guidry's 2015 salary was determined as part of the West Face Settlement Agreement dated May 7, 2015. On May 9, 2015 the Compensation Committee met and approved the compensation arrangements for Messrs. Ellson and West as recommended by Lane51Caputo based on the pay programs in place at the time. The salaries for 2015 are as follows:Name Salary (USD) Salary (CAD) $ 289,017 $ 400,000 $ 234,827 $ 325,000 Lawrence West $ 209,538 $ 290,000 (1)Mr. Guidry's 2015 salary is 12.9% less than the 2015 salary of the former President and Chief Executive Officer (calculated in CAD).(2)Mr. Ellson's 2015 salary is 5.7% less than the 2015 salary of the former Chief Financial Officer (calculated in CAD).2015 Annual Bonus Structure and DeterminationThe following bonus structure was approved by the Compensation Committee in May 2015 for the following executives in connection with 2015 performance:Name Gary Guidry 100% 100% 0% Ryan Ellson 80% 80% 20% Lawrence West 45% 60% 40% In June 2015, the Compensation Committee, along with the Board of Directors, approved eight Corporate goals as corporate performance parameters for the 2015 annual bonus structure based on the Company's budget and operating plan. For each goal, executives earn an award as long as performance targets are achieved. Once these performance targets are met, payout can be increased by reaching performance levels that exceed established targets.Upon recommendation by the Compensation Committee, in February 2016 the Board approved the 2015 corporate performance of the Company based on operational, financial, market and strategic key performance indicators (40% operational, 30% financial, 10% market and 20% strategic) as summarized in the table below:ActualMet/Missed/ExceededOperational GoalsReserve Additions (MMBOE)*7.6missedFinding, Development & Acquisition Costs ($/BOE)-0.87exceededGross Annual Average Production (BOEPD) 23,401exceeded* based on proved plus probable ("2P") NI 51-101 working interest reserves, with 2014 excluding Peru 2P reserves.Financial GoalsGeneral & Administration/boe ($/BOE)3.79exceededCash Operating Costs/boe ($/BOE)13.97exceededFunds Flow from Operations ($MM)108.32missedMarket GoalsIncrease in Net Asset Value/Share0%missedStrategic Goals1partial52For each named executive officer, the relevant performance score was applied to the portion of the officer's bonus attributable to corporate performance. Each named executive officer's score with regard to individual performance metric for 2015 was based upon the CEO’s subjective determination of that officer’s overall performance during the year and contribution to the achievement of the corporate goals. Target Corporate Individual Amount (% of Salary) Weight Weight Awarded Gary Guidry 100% 100% 0% $ 140,173 Ryan Ellson 80% 80% 20% $ 102,601 Lawrence West 45% 60% 40% $ 51,301 David Hardy 60% 60% 40% $ 108,382 Equity IncentivesPurposeThe Board adopted the 2007 Equity Incentive Plan to provide a means by which employees, directors and consultants of Gran Tierra and its affiliates may be given an opportunity to purchase stock in Gran Tierra, to assist in retaining the services of such persons, to secure and retain the services of persons capable of filling such positions and to provide incentives for such persons to exert maximum efforts for the success of Gran Tierra and its affiliates.EligibilityEmployees (including officers), directors, and consultants of both Gran Tierra and its affiliates are eligible to receive all types of awards under the Incentive Plan. Under the Incentive Plan, no employee may be granted options or stock appreciation rights whose value is determined by reference to an increase over an exercise or strike price of at least 100% of the fair market value on the date of grant covering more than 1,000,000 shares of common stock during any calendar year. The maximum number of shares which may be reserved for issuance to insiders, at any time, under the Incentive Plan, and any other share compensation arrangement of Gran Tierra shall be 10% of the shares of common stock issued and outstanding. Additionally, the maximum number of shares of common stock which may be issued under the Incentive Plan, at any time, and any other share compensation arrangements within any 12-month period shall be 10% of the common stock outstanding for insiders as a group and 5% of the common stock outstanding for any one insider and such insider’s associates. The maximum number of options that may be granted to any one consultant in any 12-month period shall not exceed 2% of the issued and outstanding common stock at the time of grant.Exercise Price; PaymentThe exercise price of options may not be less than 100% of the fair market value of the stock on the date of grant. If options were granted to covered executives with exercise prices below fair market value, deductions for compensation attributable to the exercise of such options could be limited by Section 162(m) of the Code.The “fair market value” of Gran Tierra’s common stock on a particular day is generally the closing sales price for the common stock (or the closing bid, if no sales were reported) as quoted on the primary exchange or market upon which Gran Tierra’s common stock trades. If that day is not a market trading day, then the last market trading day prior to the day of determination is used. If Gran Tierra’s common stock were not to be traded on a market, the Board would make a good faith determination of the fair market value in a manner that complies with specified U.S. tax requirements.The exercise price of options granted under the Incentive Plan must be paid either in cash at the time the option is exercised or at the discretion of the Board, (i) by delivery of other common stock of Gran Tierra, (ii) by a “net exercise” arrangement, (iii) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of common stock, results in either the receipt of cash (or check) by Gran Tierra or the receipt of irrevocable instructions to pay the aggregate exercise price to Gran Tierra from the sale proceeds, or (iv) in any other form of legal consideration acceptable to the Board.Option Exercise53Options granted under the Incentive Plan may become exercisable in cumulative increments, or vest, as determined by the Board. Shares covered by currently outstanding options under the Incentive Plan typically vest over a three year period in three equal annual installments during the participant’s employment by, or service as a director or consultant to, Gran Tierra or an affiliate, collectively referred to as “Service.” Shares covered by options granted in the future under the Incentive Plan may be subject to different vesting terms. The Board has the power to accelerate the time during which an option may vest or be exercised. In addition, options granted under the Incentive Plan may permit exercise prior to vesting, but in such event the participant may be required to enter into an early exercise stock purchase agreement that allows Gran Tierra to repurchase unvested shares, generally at their exercise price, should the participant’s Service terminate before vesting. To the extent provided by the terms of an option, a participant may satisfy any federal, state or local tax withholding obligation relating to the exercise of such option by a cash payment upon exercise, by authorizing Gran Tierra to withhold a portion of the stock otherwise issuable to the participant, by delivering already-owned common stock of Gran Tierra or by a combination of these means.Terms of Restricted Stock UnitsThe Incentive Plan authorizes the grant of RSUs, which is the right to receive shares of common stock upon the vesting of the RSUs. The Board will determine the terms and conditions, including with respect to vesting, delivery and dividends, of any RSUs granted. At the time of grant the Board will determine the consideration, if any, to be paid by the participant upon delivery of each share subject to an RSU award. If required by applicable law, the consideration to be paid by the participant for each share will not be less than the par value of a share. Consideration may be paid in any form permitted by applicable law. Except as otherwise provided in the agreement granting the RSUs, RSUs that have not vested will be forfeited upon the participant's termination of Service for any reason.In January of 2015 the Compensation Committee approved a grant to each of Messrs. Rozon, Nightingale, Hardy, and Monges consisting of stock options and RSUs. No stock options or RSUs were granted to Mr. Coffield. In February of 2015 the Compensation Committee approved a grant to Mr. Scott consisting of stock options and RSUs in connection with his appointment as Executive Chairman. In May of 2015, the Compensation Committee approved a grant to each of Messrs. Guidry, Ellson and West consisting of stock options and RSUs.All awards vest based on continued service over the vesting period. Following vesting, the RSUs may be settled in either a number of shares of our common stock equal to the number of RSUs that vest or cash equal to the number of RSUs that vest multiplied by the fair market value of a share of our common stock at that time. No dividends or dividend equivalents are earned or accrued with respect to the RSUs. Stock options are granted with an exercise price equal to the fair market value of a common share of our stock on the day prior to the date of grant.The number of stock options and RSUs granted to each named executive officer is determined based on the grant date fair value of each award (Black-Scholes value for stock options and our current share price for the RSUs) and the target long-term incentive program award value established by the Compensation Committee for each position. The Compensation Committee considered the recommendations of Lane Caputo and elements of individual, business unit and corporate performance in determining its recommendations for equity incentive grants to our named executive officers in 2015. The Board granted options and RSUs under the terms of Gran Tierra’s 2007 Equity Incentive Plan to each of our named executive officers as follows:Name Number of Stock Options Number of RSUs Gary Guidry 600,000 95,000 Jeffrey Scott 400,000 Ryan Ellson 350,000 60,000 James Rozon 225,000 60,000 Duncan Nightingale 295,000 80,000 David Hardy 145,000 35,000 Lawrence West 200,000 20,000 Carlos Monges 80,000 25,000 (1)The RSUs granted to Jeffrey Scott were forfeited by Mr. Scott on June 24. 2015.The levels of these awards were based on recommendations from Lane Caputo, taking into account our desired competitive positioning of total direct compensation targeting the 65th percentile of the Custom Peer Group, as discussed in the section titled “Philosophy and Objectives of our Executive Compensation Program” above based on the fair value of awards at time of grant. In addition to the fair54value, the absolute number of awards and each award as a percentage of total shares outstanding versus the Custom Peer Group were also considered as well as the country of residence of the executive officer. All decisions regarding the grant of equity awards during 2015 were made prior to the shift in Board membership that occurred in June of 2015.BenefitsMessrs. Coffield, Monges and Rozon were, and Messrs. Guidry, Ellson, Hardy, Nightingale and West are, eligible for full participation in all rights and benefits under any life insurance, disability, medical, dental, health and accident plans maintained by Gran Tierra for its employees and executive officers. Our executive officers generally do not receive any supplemental retirement benefits or perquisites, except for limited perquisites provided on a case-by-case basis. In addition, our executive officers will be paid their base salary in the event they become disabled while still employed by us, until such time as the executive officer begins to receive long-term disability insurance benefits. These are standard basic benefits in our industry and help to retain and recruit key talent.Employment Agreements Entered into or Amended During 2015All decisions regarding the new and amended agreements entered into during 2015 were made prior to the shift in Board membership that occurred in June of 2015.Jeffrey Scott, Former Executive Chairman- New Employment Agreement and AmendmentMr. Scott served as our Executive Chairman from February 2, 2015 until May 7, 2015. On February 2, 2015, in connection with his appointment as Executive Chairman, we entered into an employment agreement with Mr. Scott that provided: (i) an annual base salary of $260,116(ii)an annual bonus target of the greater of 100% of base salary and 200% of base salary in the event of a change of control; and (iii) the grant of a stock option to purchase 400,000 shares of common stock of Gran Tierra and restricted stock units to acquire 100,000 shares of common stock of Gran Tierra, each under Gran Tierra’s 2007 Equity Incentive Plan, with an exercise price equal to the fair market value on the date of grant and with a three year vesting term.On May 7, 2015, Mr. Scott returned to the status of non-executive Chairman of the Board and in connection with that transition Gran Tierra and Mr. Scott entered into an amendment to his February 2015 employment. Pursuant to the employment agreement amendment: (a) Mr. Scott resigned as Executive Chairman of the Board effective as of May 7, 2015 but continued to receive his compensation as Executive Chairman of the Board through the 2015 annual meeting of stockholders (i.e., June 24, 2015), at which time he ceased to be a member of the Board; (b) all stock options granted to him pursuant to his employment agreement vest and, subject to approval of the Toronto Stock Exchange, the post-termination exercise period of all stock options held by Mr. Scott will be the earlier of one year from the date Mr. Scott ceases to provide services to Gran Tierra and the original expiration date of the term of the stock option; (c) no further severance payments will be made to Mr. Scott; (d) Mr. Scott’s non-competition and confidentiality obligations will terminate effective June 24, 2015; (e) Mr. Scott’s obligation to maintain and protect personal information terminated; and (f) Gran Tierra will reimburse Mr. Scott up to $10,983 for the rental of a corporate apartment. A quantification of the actual severance payments made to Mr. Scott in connection with his termination of employment can be found in the section titled “Potential Payments Upon Termination or Change in Control,” below.James Rozon, Former Chief Financial Officer; Duncan Nightingale, Executive Vice President; and David Hardy, General Counsel- Amendment to Employment AgreementsDuring 2015, each of Messrs. Rozon, Nightingale, and Hardy entered into an amendment to their respective employment agreements with Gran Tierra which provide that:(1)within 30 days of termination of the executive’s employment with us, whether by us, by the executive (including, without limitation, termination for good reason) or by death or permanent disability of the executive, the executive will be entitled to receive a cash payment equal to the greater of:a.$525,108 for Mr. Rozon, $750,867 for Mr. Nightingale, and $476,879 for Mr. Hardy; orb.1.5 times for Messrs. Rozon and Hardy and 2 times for Mr. Nightingale multiplied by all base salary and bonus amounts either payable or paid during the 12 months preceding the executive’s termination of employment;(2)acceleration of the executive’s equity awards upon the earlier to occur, if any, of May 7, 2016 (if still employed with Gran Tierra on that date), the date Gran Tierra terminates his employment, and the date the executive resigns for good reason (as defined in the amendment); and(3)subject to approval by the Toronto Stock Exchange, the post-termination exercise period of the executive’s stock options will be extended to the earlier to occur of one year from the date of termination of employment and the original expiration date of the stock option.55In addition, Mr. Nightingale’s amendment to employment agreement also provides that Mr. Nightingale shall receive a retention bonus of $108,382 if (a) he does not terminate his employment with Gran Tierra prior to November 7, 2015, or (b) Gran Tierra breaches the employment agreement or terminates Mr. Nightingale employment with Gran Tierra prior to six months from the date of the amendment to employment agreement. Mr. Nightingale received payment of his retention bonus in November of 2015, as scheduled.The employment agreements for Messrs. Nightingale and Hardy were amended in order for the Company to retain as many of the current executives of the Company as possible.A quantification of the actual severance payments made to Mr. Rozon in connection with his termination of employment can be found in the section titled “Potential Payments Upon Termination or Change in Control,” below.Gary Guidry, President and Chief Executive Officer; Ryan Ellson, Chief Financial Officer; Lawrence West, Vice President, Exploration- New Employment AgreementsMr. Guidry became President and Chief Executive Officer on May 7, 2015, and Messrs. Ellson and West became Chief Financial Officer and Vice President, Exploration, respectively, on May 11, 2015. In connection with their commencement of employment with us, we entered into employment agreements with each of these executives, which provided the following material terms: Base Salary Target Bonus (% of Base Salary) Equity Awards Gary Guidry $289,017 100% 600,000 options; 95,000 RSUs Ryan Ellson $234,827 80% Lawrence West $209,538 45% The employment agreements do not have a fixed term. A summary of the termination and change in control provisions of the employment agreements with our named executive officers, as well as quantification of the potential severance payments for each named executive officer can be found in the section titled “Potential Payments Upon Termination or Change in Control,” which follows.Post-Employment ArrangementsOur employment agreements with Messrs. Nightingale and Hardy provide for payments to these executives under certain termination of employment scenarios. The agreements provide that these executive officers will receive severance payments in the event that their employment is terminated other than for “cause” or if they terminate their employment with us for “good reason.” The termination and change-in-control provisions were industry standard clauses at the time that the executive officers entered into the employment agreements with us. The termination and change-in-control provisions for Messrs. Nightingale and Hardy were amended effective May 7, 2015 as stipulated in the WestFace Settlement Agreement. All decisions regarding the amendment of these employment agreements were made prior to the shift in Board membership that occurred in June of 2015. A summary of the termination and change in control provisions of agreements with our named executive officers, as well as quantification of hypothetical and, where applicable, actual severance payments for each named executive officer can be found in the section titled “Potential Payments Upon Termination or Change in Control,” which follows.Hedging and Pledging PolicyAs per the Company's policy for stock trading by officers, directors and other designated persons, no officer, director or other designated person may engage in short sales, transactions in put or call options, hedging transactions or other inherently speculative transactions with respect to the Company's stock at any time.Risk AssessmentIn early 2015, the Compensation Committee and the Board each assessedperiodically review the risks associated with our compensation policies and practices. These assessments includedinclude an examination of the changes in our risk profile over the past year for our compensation policies and practices. Based on this assessment, the Compensation Committee and the Board each determined that these risks were not reasonably likely to have a material adverse effect on us. Among other things, the Compensation Committee and the Board took into consideration the fact that:56the current significant weighting towards long-term incentive compensation, the value of which depends on the value of our shares, discourages short-term risk taking;· the current significant weighting towards long-term incentive compensation, the value of which depends on the value of our shares, discourages short-term risk taking; · our annual incentive compensation program includes several different metrics, preventing NEOs from focusing on one metric at the exclusion of other important performance goals; · our compensation program is appropriately balanced such that if annual bonus targets are not achieved, base pay and long-term incentive compensation will still provide the executives with a reasonable minimum amount of compensation; · stock options and PSUs for executives vest over three years, which discourages short-term risk taking; · our clawback policy permits us to recover executive compensation in the case of fraud or intentional misconduct requiring a material restatement of financial results; · stock ownership guidelines encourage a long-term perspective by our executives; and · incentive awards are decided by the Compensation Committee and recommended to the Board for approval. 45 Pengrowth Energy Corporation Bonavista Energy Corporation Raging River Exploration Inc. Birchcliff Energy Ltd. Parex Resources Inc. TORC Oil & Gas Ltd. Crew Energy Inc. NuVista Energy Ltd. Canacol Energy Ltd. Surge Energy Inc. TransGlobe Energy Corporation several different metricsa mix of fixed and variable pay with performance periods ranging from one to five years. The primary elements are summarized in the table below:Compensation Fixed/Variable Cash/Equity Time Period Goal Base Salary Fixed Cash 1 year Provide fixed level of income Short-term Incentive Variable Annual cash bonus 1 year Reward contribution to annual corporate and individual performance Long-term Incentive Variable PSUs
Stock options3 years
5 yearsReward medium and long-term performance 46 Name 2017 Base Salary
($) 2016 Base Salary(1)
($) % Increase
2016-2017 Gary S. Guidry $ 318,852 $ 318,852 — Ryan Ellson $ 259,067 $ 259,067 — Adrian Coral $ 230,000 $ 230,000 — Jim Evans $ 239,139 $ 239,139 — Lawrence West $ 239,139 $ 239,139 — David Hardy $ 255,879 $ 255,879 — (1) For ease of comparison, amounts reported in this column are converted from Canadian dollars and Colombia pesos to U.S. dollars at the exchange rate at December 29, 2017. named executive officer, preventingof our NEOs which were calculated as a percentage of their respective base salaries.executive from focusing on one metric at the exclusion of other important performance goals;our compensation programbonus is appropriately balanced such that if annualcalculated as below:
targets are not achieved, base pay and long-term incentive compensation will still provide the executives with a reasonable minimum amount of compensation; andincentive awards are decidedstructure was approved by the Compensation Committee for the following executives in connection with 2017 performance:Name Target Payout as a %
of Base Salary Corporate Performance
Weighting Individual Performance
Weighting Gary S. Guidry 100% 100% —% Ryan Ellson 80% 80% 20% Adrian Coral 60% 60% 40% Jim Evans 50% 60% 40% Lawrence West 50% 60% 40% David Hardy 50% 60% 40% recommendedis weighted between 20% and 40% of the award with the remaining amount being driven by our performance relative to our performance measures. The individual performance rating for each NEO, other than the Chief Executive Officer, is determined through a formal performance evaluation conducted with the Chief Executive Officer. The performance evaluation measures how each NEO performs against criteria directly related to their position.47 Boardsuccess of the Company’s business plan for approval.2016 Compensation DecisionsDuring the second halfyear, which were used as corporate performance metrics to determine the 2017 annual bonus structure (40% operational, 30% financial, 10% market and 20% strategic). Each of 2015, the Boardmeasures had a threshold level of performance which had to be reached for the measure to contribute to a payout. There is a target level of performance for each element and Management reconsidered our compensation practices to realign our programs with our renewed short-a stretch level of performance above threshold. Between threshold and long-term strategy.The members of our newly comprised Compensation Committee engaged Hugessen Consulting to evaluate our executive compensation program. After taking into consideration the recommendations made by Hugessen Consulting, the Compensation Committee recommended,target performance, and between target and the stretch maximum, performance factors are graduated according to the performance level actually reached. The Board approved, a newof Directors met in January 2018 to assess the Company’s 2017 performance relative to the pre-established targets. The following table summarizes the results of the assessment:Metric Operational Goals Gross Field Reserve 2P Additions (MMBOE)(1) 15% 10 - 15 - 20 27.9 Maximum 30% 2P Finding & Development Costs (“F&D”), Including Future Development Costs ($/BOE)(2) 10% 15 - 12 - 10 11.3 Above Target 14% WI Production before royalties (BOEPD) 15% 35 - 36 - 38 32.1 Below Threshold 0% Financial Goals General & Administration Expenses ($/BOE) 10% 4.5 - 3.0 - 2.5 2.6 Maximum 20% Cash Costs ($/BOE)(3) 10% 25 - 20 - 18 16.4 Maximum 20% Funds Flow from Operations ($ millions)(4) 10% 200 - 225 - 250 220.2 Below Target 8% Market Goals Increase in NAV/share(5) 10% 17.58 - 12% 30% Maximum 20% Strategic Goals(6) 20% - Partially Met Target 15% 100% 127% (1) 2P reserves have been calculated in compliance with NI 51-101 and COGEH and are based on the GTE McDaniel Reserves Report. See “Disclosure of Oil and Gas Information” for important information. (2) F&D costs are calculated as estimated exploration and development capital expenditures in Colombia, excluding acquisitions and dispositions, divided by the applicable reserves additions both before and after changes in future development costs (“FDC”) costs. The calculation of F&D costs incorporates the change in FDC required to bring proved undeveloped and developed reserves into production. The aggregate of the exploration and development costs incurred in the financial year and the changes during that year in estimated FDC may not reflect the total F&D costs related to reserves additions for that year. Management uses F&D costs per BOE as a measure of its ability to execute its capital program and of its asset quality. (3) Cash costs includes operating, transportation and commercialization expenses. (4) Funds flow from operations is a non-GAAP measure and does not have a standardized meaning under generally accepted accounting principles in the United States of America (“GAAP”). Funds flow from operations, as presented, is net income or loss adjusted for DD&A expenses, asset impairment, deferred tax expense or recovery, stock-based compensation expense, amortization of debt issuance costs, cash settlement of RSUs, unrealized foreign exchange and financial instruments gains and losses and loss on sale of business units or gain on acquisition. Management uses this financial measure to analyze performance and income or loss generated by our principal business activities prior to the consideration of how non-cash items affect that income or loss, and believes that this financial measure is also useful supplemental information for investors to analyze performance and our financial results. (5) See page 50 for further details of NAV. (6) The 2017 Strategic Goals include metrics set by the Compensation Committee relating to joint ventures, exploration discoveries, financing and exploration commitments included in the Company’s annual budget and approved by the Board. 48 Base Salary
for 2017 ($) Target Payout as a %
of Base Salary 2017 Cash Bonus
Awarded ($)(1) 2017 Cash Bonus
(% of Base Salary) Gary S. Guidry 318,852 100% 404,145 127 Ryan Ellson 259,067 80% 262,256 101 Adrian Coral 230,000 60% 166,600 72 Jim Evans 239,139 50% 150,658 63 Lawrence West 239,139 50% 136,309 57 David Hardy(2) 255,879 50% n/a n/a (1) 2017 Cash Bonuses were paid on February 15, 2018. (2) Mr. Hardy’s employment with us terminated on August 30, 2017 and, as such, he did not receive a cash bonus for 2017. for 2016. The newwas redesigned in 2016 equity compensation program reflects the Compensation Committee’s emphasis on pay-for-performance. In prior years, allto incorporate equity awards granted to our named executive officers were subject to vesting conditions based solely on the recipient’s continued employment over a specified period of time. In contrast, 80% of the equity awards granted to our named executive officers in early 2016 consisted of Performance Stock Units and 20% consisted of stock options. Performance Stock UnitsOur Compensation Committee and our Board believed it was important to revise our equity compensation program to incorporate a new form of equity award that vestsvest based on the achievement of certain key measuresoperational goals established by the Board of Directors as described below. Approximately 80% of the value of equity awards granted in 2017 consisted of PSUs and 20% of the value of equity awards consisted of stock options, based on the fair value at grant date.performance. The purpose of this change waslong-term incentive plan, PSUs are designed to create a link between executive compensation and increased stockholder value by rewarding NEOs for achievement against key performance metrics over a three-year period. Our goal is to further incentivize our executives to achieve the operational goals established by the Board and to increase share and net asset value for our stockholders. The Performance Stock Units grantedour named executive officersbe issued the number of common shares designated in early 2016 may become fully vested at the endperformance award multiplied by a payout multiplier, with such common shares (or cash equal in value to such shares) to be issued on dates determined by the Compensation Committee, but no later than March 15 of the three-yearyear following the year in which the last performance period based upon ourapplicable to the award ends. The payout multiplier is dependent on the performance with respectof the Company relative to four separatepre-defined corporate performance periods as follows:\Performance PeriodPercentage of Target Award Subject to Performance PeriodJanuary 1, 2016 - December 31, 201620%January 1, 2017 - December 31, 201720%January 1, 2018 - December 31, 201820%January 1, 2016 - December 31, 201840%Performance Stock UnitsPSUs that vest may range from zero to 200% of the target number granted based on the performance multiplier earned under the terms of the award agreement. Each recipient must also remain in the continuous service of Gran Tierra from the date of grant through the date of settlement in order for the award to vest. Performance Period Percentage of Target Award Subject to Performance Period January 1, 2017 - December 31, 2017 20% January 1, 2018 - December 31, 2018 20% January 1, 2019 - December 31, 2019 20% January 1, 2017 - December 31, 2019 40% 100% will be calculated for each performance periodis as follows:· 50% weighting: Gran Tierra’s Relative Total Shareholder Return (“TSR”); · 25% weighting: Gran Tierra’s Net Asset Value (“NAV”) per shares; and · 25% weighting: execution of strategy (as determined by the Board). 49 Board as follows:·50% weighting:comparison of Gran Tierra’s Relative Total Shareholder Return, which will beTSR over a specified period of time to the returns of peer companies over the same period is an objective external measure of the Company’s effectiveness in translating its results into stockholder returns. TSR is calculated by comparing Gran Tierra’s change in share price plus reinvestment of dividends relative to the performance of a pre-selected peer group of companies (selected by the Board in its sole and absolute discretion) with respect to the same measures;measures. The framework included in the table below is used to determining our relative TSR. Results between the performance levels are interpolated on a linear basis. Annualized TSR Above/Below Payout Multiplier Performance Level Median of Peers (% of the Target Award) Threshold -15% 0 Target At median 100 Maximum 20% 200 Callon Petroleum Company Oasis Petroleum Inc. Canacol Energy Ltd. Obsidian Energy Ltd. (formerly Penn West Petroleum Ltd.) Carrizo Oil & Gas Inc. Parex Resources Inc. Contango Oil & Gas Company Spartan Energy Corp. Jones Energy Inc. Synergy Resources Corp. Kosmos Energy Ltd. Tamarack Valley Energy Ltd. Matador Resources Company TransGlobe Energy Corp. Frontera Energy Corporation
(formerly Pacific Exploration & Production Corp.)W&TOffshore Inc. ·25% weighting:NAV per share is based on before tax NPV discounted at 10% of Colombia only proved plus probable (2P) reserves, year-end 2017 net debt of $272 million, comprised of working capital deficit of $16 million, senior convertible notes of $111 million (net of unamortized fees; $115 million gross) and reserves-based credit facility of $145 million (net of unamortized fees; $148 million gross), excluding risk management assets and liabilities and investment in Sterling Resources Ltd. shares, and number of shares of Gran Tierra’s common stock and Exchangeable Shares issued and outstanding at December 31, 2017 and 2016, of 391 million and 399 million, respectively. Net Asset Valueworking capital and debt at December 31, 2017 and 2016, prepared in accordance with generally accepted accounting principles in the United States of America. NAV per share; andshare was chosen as a performance metric for our PSUs because it provides an indication of the value of the Company’s reserves on a per share basis. Growth in NAV per share demonstrates the Company’s ability to increase the underlying value of the Company without diluting stockholders. The framework included in the table below is used to assess NAV per share performance. Results between the performance levels are interpolated on a linear basis.50 Performance Level Compound Annual Growth
in NAV/share Payout Multiplier
(% of the Target Award) Threshold less than 8% 0 Target 8% 100 Maximum 12% 200 ·Strategy.25% executionExecution of strategy (as determinedwas chosen as a performance metric for our PSUs because it provides a link to the Company’s success in meeting key milestones and achieving its strategic goals. The Strategic Goals included metrics set by the Board). Minimum # of units Target # of units Maximum # of units Gary S. Guidry 0 325,600 651,200 Ryan Ellson 0 235,800 471,600 Adrian Coral 0 131,200 262,400 Jim Evans 0 139,500 279,000 Lawrence West 0 139,500 279,000 David Hardy(1) 0 149,300 298,600 (1) All PSUs held by David Hardy were forfeited upon his retirement on August 30, 2017. Stock UnitsResults.In February 2018, the Compensation Committee confirmed and approved the performance results for the portion of the 2017 annual PSU awards that vest may range from zero to 200% of the target number granted based on performance during the one-year performance period ended December 31, 2017 and continued employment through the end of 2019.multiplier earned underperiod ended December 31, 2017, the terms of the award agreement. Each recipient must also remain in the continuous service ofperformance results were as follows: 2017 result Performance Level Weighting Payout Multiplier TSR - Relative TSR above or below median of peers +0.5% Above Target 50% 0.67 NAV - Compound annual growth in NAV per share +30% Maximum 25% 0.50 Strategy Above Target 25% 0.46 Total Multiplier 1.62 fromcommon shares at a future date at the dateexercise price determined at the time of grant through the date of settlement in order for the award to vest. 57Stock Optionsour Board continuecontinues to believe that time-vested stock options are an important element of our equity compensation program because they serve as a strong retention tool while ensuring that the recipient only receives value upon an increase in the value of our common stock. One-thirdStock options within the LTIP mix account for 20% of the stockvalue of equity awards granted.granted to our named executive officers in early 2016 are eligible to vest on March 2, 2017, an additional one-thirdpro-rata annually over three years, beginning with the first anniversary of the stock options are eligible to vest on March 2, 2018date of grant, and the remaining one-thirdhave a term of the stock options are eligible to vest on March 2, 2019, in each casefive years, subject to the officer’s continuous provision of services to Gran Tierra through the vesting date (except as otherwise provided in an officer’s award agreement or any employment agreement with Gran Tierra).Director CompensationEffective January 1, 2016, each non-employee director receives the following compensation:An annual fee of $39,740 ($66,835 The exercise price for the Chairman of the Board);Additional fees of: $32,514 for the audit committee chair; 21,676 for the compensation committee chair; $21,676 for the corporate governance and nominating committee chair; $21,676 for the health, safety & environment committee chair and $21,676 for the reserves committee chair; and $10,838 for each committee member other than the chair;A travel fee of $1,084 per meeting for each director whoour stock options is required to travel over three hours to attend a meeting; andEquity awards for 2016 equal to $93,931 for the Chairmanmarket price per share at the time of the Board and $50,939 for each director who served on the Board with the condition that the equity portion must be taken in the form of equity until the stock ownership guideline is achieved.Effective January 1, 2016, the fees can be taken in the form of cash, Restricted Stock Units, Options or Deferred Stock Units or any combination thereof, as elected by each non-employee director.The Board approved a stock ownership guideline for the non-employee directors equal to three times the directors' cash retainer to be based on the greater of the purchase price of the shares and the current trading price of the shares to be reached within five years effective January 1, 2016. Any Deferred Stock Units and Restricted Stock Units held by a director will be included in the calculation of the directors' ownership.COMPENSATION COMMITTEE REPORThas reviewed and discussed with managementmeets in the Compensation Discussion and Analysis (“CD&A”) contained in this proxy statement.. Based on thisfirst quarter each year to evaluate, review and discussion,approve the annual stock option award design and level of awards for the NEOs.51 has recommended toapproved the Board that the CD&A be included in this proxy statement and infollowing awards under our Annual Report on Form 10-K2007 Equity Incentive Plan for the fiscal year ended December 31, 2015.The material in this report is not “soliciting material,” is furnished to, but not deemed “filed” with, the SEC and is not deemed to be incorporated by reference in any filing of Gran Tierra under the Securities Act or the Exchange Act, other than Gran Tierra’s Annual Report on Form 10-K, where it shall be deemed to be “furnished,” whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.Brooke Wade, ChairPeter DeyRobert HodginsCOMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATIONGran Tierra’s Compensation Committee currently consists of Messrs. Wade, Dey and Hodgins. None of the members of the Compensation Committee has at any time been an officer or employee of Gran Tierra. No member of the Board or of the Compensation Committee served as an executive officer of another entity that had one or more of Gran Tierra’s executive officers serving as a member of that entity’s board or compensation committee.SUMMARY COMPENSATION TABLEThe following table shows for the fiscal years ended December 31, 2015, 2014 and 2013, compensation awarded to or paid to, or earned by, any individual who, (i) served as Gran Tierra’s Chief Executive Officer or Chief Financial Officer during the year in question, (ii) was one of the three other most highly compensated executive officers, or (iii) would have been one of the three most highly compensated58executive officers but for the fact that they were not serving as an executive officer at December 31, 2015 (collectively, the “named executive officers”):Name and Position Year 187,204 140,173 350,550 896,072 2,238 1,576,237 2015 108,382 - 275,000 442,464 20,373 846,219
-151,214 102,601 221,400 522,709 2,228 1,000,152 -
120,690
131,628165,000
447,000
287,7002015 98,522 51,301 73,800 298,691 154,681 676,995 PSUs Stock Options Total LTI Grant
Date Fair Value ($) Target #
of units Grant Date Fair
Value ($)(1) # of units Grant Date Fair
Value ($)(1) Gary S. Guidry 1,046,505 325,600 836,792 184,200 209,713 Ryan Ellson 757,883 235,800 606,006 133,400 151,877 Adrian Coral 421,661 131,200 337,184 74,200 84,477 Jim Evans 448,343 139,500 358,515 78,900 89,828 Lawrence West 448,343 139,500 358,515 78,900 89,828 David Hardy(2) 479,905 149,300 383,701 84,500 96,204 Each of our named executive officers is paid in Canadian dollars, except for Mr. Monges, who was paid in Peruvian New Soles. Amounts paid to the named executive officers and reported in the table below have been converted to U.S. dollars. For discussion of 2015 bonus and other compensation amounts, the exchange rate at December 31, 2015, of one US dollar to Canadian $1.3840 is used. For discussion of 2014 bonus and other compensation amounts, the exchange rate at December 31, 2014, of one US dollar to Canadian $1.1600 is used. For discussion of 2013 bonus and other compensation amounts, the exchange rate at December 31, 2013, of one US dollar to Canadian $1.0636 is used. To the extent that amounts are in Peruvian New Soles, which is the case for Mr. Monges, the exchange rate at December 31, 2014, of one US dollar to 2.99 Peruvian New Soles or the exchange rate at December 31, 2015, of one US dollar to 3.410 Peruvian New Soles is used.(2)The Compensation Committee determined incentive bonuses for Gran Tierra’s named executive officers based on a subjective assessment of corporate, business unit and personal performance in addition to consideration of Gran Tierra’s overall operational and financial results, as more fully described in “Compensation Discussion and Analysis” above. Because these amounts are established based on the Compensation Committee’s subjective assessment, they are reported as bonuses rather than non-equity incentive plan compensation. The bonus amount paid to Mr. Nightingale includes a retention bonus of $108,382 paid in November 2015. Amounts reported in the bonus column for each year represent the bonus earned in that year, irrespective of when the bonus amount was paid. This is a change in the basis of presentation from prior years (where amounts were reported in the year in which they were paid rather than the year in which they were earned). Amounts reported in the bonus column and the total column for each of 2013 and 2014 have been reclassified to conform to this presentation.(3)Granted under terms of Gran Tierra’s 2007 Equity Incentive Plan. The amounts shown represent the aggregate grant date fair value of time-vested RSUs based on the closing price of Gran Tierra’s common stock on the grant date computedreported in accordance with ASC 718. Under the terms of the 2007 Equity Incentive Plan and Restricted Stock Unit Award Agreement, upon the vesting of units, the holder will receive, at the option of Gran Tierra, either the underlying number of shares of Gran Tierra’s common stock or a cash payment equal to the value of the underlying shares, in each case net of taxes and other required withholdings. Assumptions made regarding the valuation of RSUs granted are discussed in Note 8 to Gran Tierra’s 2015 Consolidated Financial Statements, which can be found in Item 8 of the Form 10-K filed with the SEC on February 29, 2016.59(4)Granted under terms of Gran Tierra’s 2007 Equity Incentive Plan. The value reported above reflects the aggregate grant date fair value computedthis column is calculated in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718 Compensation - Stock Compensation (“ASC 718”). Assumptions made regarding(2) All PSUs held by David Hardy were forfeited upon his retirement on August 30, 2017. Position Guideline Ownership Relative to Base Salary
as of December 31, 2017(1)Chief Executive Officer 3 X base salary Exceeds Chief Financial Officer 2 X base salary Exceeds Other NEOs 1 X base salary Exceeds or In-Progress 52 Number of Shares
Owned as of
December 31, 2017 Value of Shares
owned as of
December 31, 2017(1) Minimum
Ownership
Per Guideline Gary S. Guidry 2,527,000 $ 6,822,900 $ 956,557 Ryan Ellson 266,030 $ 718,281 $ 518,135 Adrian Coral 0 0 230,000 Jim Evans 251,405 $ 678,794 $ 239,139 Lawrence West 245,030 $ 661,581 $ 239,139 David Hardy n/a n/a n/a (1) Value is calculated based on the closing price of the Company’s shares on the NYSE American on December 29, 2017, which was $2.70. 53
Peter J. Dey
Robert B. Hodgins54 Name and Position Year Salary(1)
($) Stock
Awards(3)
($) Option
Awards(4)
($) Non-Equity
Incentive Plan
Compensation(2)
($) All Other
Compensation(5)
($) Total
($) Gary S. Guidry(6) 2017 318,852 836,792 209,713 404,145 6,804 1,776,306 President and Chief 2016 297,907 832,048 219,984 359,723 4,555 1,714,217 Executive Officer 2015 187,204 350,550 896,072 140,173 2,238 1,576,237 Ryan Ellson(7) 2017 259,067 606,006 151,877 262,256 6,804 1,286,010 Chief Financial Officer 2016 242,050 602,756 159,358 235,347 4,555 1,244,066 2015 151,214 221,400 522,709 102,601 2,228 1,000,152 Jim Evans(8) 2017 239,139 358,515 89,828 150,658 89,697 927,837 Vice President, Corporate 2016 223,430 356,440 94,229 128,845 3,997 806,941 Services 2015 134,921 73,800 298,691 51,301 2,228 560,941 Adrian Coral, 2017 210,461 337,184 84,477 166,600 116,694 915,416 President, Colombia 2016 185,303 78,204 20,670 156,551 122,557 563,285 2015 206,230 68,750 94,024 136,070 120,217 625,291 Lawrence West(9) 2017 239,139 358,515 89,828 136,309 264,963 1,088,754 Vice President, 2016 223,430 356,440 94,229 125,866 247,069 1,047,034 Exploration 2015 98,522 73,800 298,691 51,301 154,681 676,995 David Hardy(10) 2017 170,586 383,701 96,204 0 731,288 1,381,779 Former Vice President, Legal 2016 239,071 381,710 100,812 184,702 25,515 931,810 and General Counsel 2015 231,936 88,550 160,393 108,382 37,503 626,764 (1) All compensation is paid in Canadian dollars and converted into U.S. dollars for the purposes of the above table. For 2017 compensation amounts, the exchange rate at December 29, 2017 of one U.S. dollar to Canadian $1.2545 is used. (2) Amounts reported in the “Non-equity Incentive Plan Compensation” column for each year represent the amount earned in that year, irrespective of when the amount was paid. (3) Amounts reported in the “Stock Awards” column represent the aggregate grant date fair value of RSU and PSU awards, computed in accordance with ASC 718, disregarding estimated forfeitures. The PSU awards are subject to market conditions and have been valued based on the probable outcome of the market conditions as of the grant date. For a discussion of valuation assumptions, see Note 7 - Share-Based Compensation of the Notes to Consolidated Financial Statements included under Item 7 in our Annual Report on Form 10-K for the year ended December 31, 2017. Assuming maximum performance is achieved, the value of PSUs based on the price of the Company’s shares at the date of grant would be as follows: Gary S. Guidry - $1,673,584; Ryan Ellson - $1,212,012; Jim Evans - $717,030; Adrian Coral - $674,368; Lawrence West - $717,030; David Hardy - $767,402. (4) Amounts reported in the “Option Awards” column represent the aggregate grant date fair value of stock options, granted are discussedcomputed in accordance with ASC 718. The value ultimately realized by the NEOs upon the actual vesting of the award(s) or the exercise of the stock option(s) may or may not be equal to this determined value. For a discussion of valuation assumptions, see Note 87 - Share-Based Compensation of the Notes to Gran Tierra’s 2015 Consolidated Financial Statements which can be found inincluded under Item 8 of thein our Annual Report on Form 10-K filed withfor the SEC on February 29, 2016.year ended December 31, 2017.On February 2, 2015, Mr. Coffield ceased to be an employee or officer of Gran Tierra.Amounts reported in the “All Other Compensation” column include severance payments, vacation pay, parking and transportation allowances, group term life insurance, and other perquisites, as shown in the table below.Mr. Scott served as Executive Chair from February 2, 2015 to May 7, 2015.(7)Mr. Rozon ceased to be our Chief Financial Officer on May 7, 2015 and ceased to be an employee of Gran Tierra on June 30, 2015.(8)Mr. Monges was not a named executive officer in 2013, and consequently his compensation for 2013 was not previously reported, and in accordance with SEC rules is not reported here. Mr. Monges ceased to be an employee or officer of Gran Tierra on July 1, 2015.(9)Mr. Guidry became President and Chief Executive Officer on May 7, 2015. (10)Mr. Ellson became Chief Financial Officer on May 11, 2015. (11)Mr. Nightingale served as our President, Gran Tierra Colombia Ltd. until August 2014, and as our Chief Operating Officer from September 2014 to February 2015, as our Interim Chief Executive Officer and President from February 2, 2015 to May 7, 2015, and as our ExecutiveEvans became Vice President, fromCorporate Services on May 7, 2015 to February 19, 2016.11, 2015.(12)Mr. West became Vice President, Exploration on May 11, 2015. (13) Includes vacation payment of $9,827 and housing allowance of $10,546.(10) Mr. Hardy ceased to be our Vice President, Legal and General Counsel on August 30, 2017. (14)55 Name Group Term
Life Insurance
(S) Parking and
Transportation
Allowance
($) Vacation
Pay ($) Severance
Payment ($) Other ($) Total
($) Gary S. Guidry 928 5,876 — — — 6,804 Ryan Ellson 928 5,876 — — — 6,804 Adrian Coral 3,722 — 7,747 — 105,225 (1) 116,694 Jim Evans 928 3,029 — — 85,740 (2) 89,697 David Hardy 655 2,551 47,731 680,351 731,288 Lawrence West — — — — 264,963 (3) 264,963 (1) Consists of severance payment to$89,190 for driver, vehicle and vehicle expenses, $6,136 for club membership and $9,899 for savings fund contributions. Mr. Coffield of $1,530,347; vacation payment of $7,960, parking costs of $193 and life insurance premiums of $766.Coral resides in Bogota, Colombia.(15)Consists of severance payment to Mr. Rozon of $525,108, vacation payment of $19,415, parking costs of $1,284 and life insurance premiums of $569.(16) Consists of parking costs of $2,853 and life insurance premiums of $2,214.(17) Includes vacation payment of $29,688, parking costs of $2,583 and life insurance premiums of $5,232.(18)Consists of $59,715$15,945 allowance for housing furniture and utilities; $27,312$37,713 for driver, vehicle and parkingvehicle expenses; $50,751$27,401 for foreign service and settlementhardship allowance; $6,240$4,384 for goods and services costs; $7,070 club membership; $277 life insurance premiums and $3,316$297 for language training. Mr. Evans has been residing in Bogota, Colombia since September 2017.(19)Consists of severance payment to$84,987 allowance for housing and utilities; $86,872 for driver, vehicle and vehicle expenses; $63,573 for foreign service and hardship allowance; $14,922 for goods and services costs; $12,365 for club membership; and $2,244 for language training. Mr. Monges of $208,382, vehicle allowance of $33,431 and health and accident insurance premiums of $4,516.West currently resides in Bogota, Colombia.2015 Estimated Future Payouts
Under Non-Equity Incentive
Plan Awards Estimated Future Payouts
Under Equity Incentive
Plan Awards All Other
Option
Awards:
Number of
Securities
Underlying Exercise or
Base Price
of Option Grant Date
Fair Value
of Stock
and Option Name Grant Date Threshold
($) Target
($) Maximum
($) Threshold
(#) Target
(#) Maximum
(#) Options
(#) Awards
($/Sh) Awards
($)(1) Gary S. Guidry $0 318,852 637,704 2017/03/02 0 325,600 651,200 2017/03/02 184,200 2.57 209,713 Ryan Ellson $0 207,254 383,420 2017/03/02 0 235,800 471,600 2017/03/02 133,400 2.57 151,877 Adrian Coral $0 138,000 234,600 2017/03/02 0 131,200 262,400 2017/03/02 74,200 2.57 84,477 Jim Evans $0 119,570 203,268 2017/03/02 0 139,500 279,000 2017/03/02 78,900 2.57 89,828 Lawrence West $0 119,570 203,268 2017/03/02 0 139,500 279,000 2017/03/02 78,900 2.57 89,828 David Hardy $0 127,939 217,497 2017/03/02 0 149,300 298,600 2017/03/02 84,500 2.57 96,204 (1) The amounts in this column reflect the aggregate grant date fair value of awards granted to NEOs in 2017 computed in accordance with ASC 718, disregarding estimated forfeitures. The value ultimately realized by each NEO upon the actual vesting of the award(s) or exercise of the stock option(s) may or may not be equal to this determined value. For a discussion of the valuation assumptions, see Note 7—Share-Based Compensation of the Notes to Consolidated Financial Statements included under Item 8 in our Annual Report on Form 10-K for the year ended December 31, 2017. 56 2015, certain information regarding grants of plan-based awards to the Named Executive Officers:60Name Grant Date Number of Shares Underlying Stock or Units (#) Number of Securities Underlying Options (#) Exercise or Base price of Option Awards ($/Sh) Gary Guidry May 12, 2015 May 7, 2015 600,000 3.69 896,072 May 12, 2015 May 7, 2015 95,000 350,550 Jeffrey Scott March 4, 2015 Feb. 19, 2015 400,000 2.75 442,464 March 4, 2015 Feb. 19, 2015 100,000 275,000 Dana Coffield — — — — — — — — — — — — Ryan Ellson May 12, 2015 May 9, 2015 350,000 3.69 522,709 May 12, 2015 May 9, 2015 60,000 — — 221,400 James Rozon March 4, 2015 Feb. 19, 2015 225,000 2.75 248,886 March 4, 2015 Feb. 19, 2015 60,000 165,000 Duncan Nightingale March 4, 2015 Feb. 19, 2015 295,000 2.75 326,317 March 4, 2015 Feb. 19, 2015 80,000 220,000 David Hardy March 4, 2015 Feb. 19, 2015 145,000 2.75 160,393 March 4, 2015 Feb. 19, 2015 35,000 88,550 Lawrence West May 12, 2015 May 9, 2015 200,000 3.69 298,691 May 12, 2015 May 9, 2015 20,000 73,800 Carlos Monges March 4, 2015 Feb. 19, 2015 80,000 2.75 88,493 March 4, 2015 Feb. 19, 2015 25,000 68,750 (1)Represents the date that the Board took the action to grant the award.(2)For option awards, represents the grant date fair value of such option award calculated in accordance with ASC 718 using the Black Scholes valuation model. Assumptions made regarding the valuation of stock options granted are discussed in Note 8 to Gran Tierra’s 2015 Consolidated Financial Statements, which can be found in Item 8 of the Form 10-K filed on February 26, 2016.(3)For stock awards, represents the grant date fair value of time-vested RSUs based on the closing price of Gran Tierra’s common stock on the grant date equal to (a) $2.75 per share for awards granted March 4, 2015 and (b) $3.69 per share for the awards granted on May 12, 2015. Assumptions made regarding the valuation of RSUs granted are discussed in Note 8 to Gran Tierra’s 2015 Consolidated Financial Statements, which can be found in Item 8 of the Form 10-K filed on February 26, 2016.NARRATIVE TO THE SUMMARY COMPENSATION TABLE AND GRANTS OF PLAN-BASED AWARDS TABLEIn connection with the amendment of employment agreements with each of Messrs. Hardy, Rozon, Nightingale, and Scott, the terms of each executive’s stock options and, in the case of each executive other than Mr. Scott, RSUs were amended to provide for accelerated vesting in connection with certain terminations of employment. The incremental fair value, computed as of the modification date in accordance with FASB ASC Topic 718, for all stock options or RSUs modified during 2015 is included in the Summary Compensation Table in either the Stock Awards or Option Awards column, as appropriate, and in the Grants of Plan-Based Awards table. For additional information regarding the details of these employment agreement amendments please see the section of the Compensation Discussion & Analysis entitled “Employment Agreements Entered into or Amended During 2015” and for additional information regarding the payment of cash amounts and the acceleration of equity awards that occurred in connection with actual terminations of employment by named executive officers during 2015, please see the Summary Compensation Table (above), and the section entitled “Potential Payments Upon Termination or Change in Control” which follows.2015 OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-ENDThe following table shows for the fiscal year ended December 31, 2015,2017, certain information regarding outstanding equity awards at fiscal year-end forheld by each of the Named Executive Officers.61 Option Awards Stock Awards Name Number of Securities Underlying Unexercised Options (#) Exercisable Number of Securities Underlying Unexercised Options (#) Unexercisable Option Exercise Price ($) Option Expiration Date Number of Shares or Units That Have Not Vested (#) Gary Guidry — 600,000 (4 ) 3.69 May 11, 2020 95,000 206,150 100,000 — * 1.27 June 24, 2016 — — 150,000 — * 2.14 June 24, 2016 — — 425,000 — * 2.51 June 24, 2016 — — 75,000 — * 5.90 June 24, 2016 — — 55,000 — * 8.40 June 24, 2016 — — 125,000 — * 5.83 June 24, 2016 — — 55,000 — * 6.28 June 24, 2016 — — 100,000 — * 7.09 June 24, 2016 — — 400,000 — * 2.75 June 24, 2016 — — Dana Coffield — — — — — — Ryan Ellson — 350,000 (4 ) 3.69 May 11, 2020 60,000 130,200 25,000 — * 1.72 June 30, 2016 — 125,000 — * 2.51 June 30, 2016 — — 40,000 — * 5.90 June 30, 2016 — — 35,000 — * 8.40 June 30, 2016 — — 35,000 — * 5.83 June 30, 2016 — — 157,500 — * 6.28 June 30, 2016 — — 165,000 — * 7.09 June 30, 2016 — — 225,000 — * 2.75 June 30, 2016 — — Duncan Nightingale 166,667 — * 3.95 Sep. 8, 2019 8,334 18,085 30,000 — * 5.90 Mar. 3, 2020 16,667 36,167 50,000 — * 8.40 Mar. 9, 2021 18,334 39,785 50,000 — * 5.83 Feb. 28, 2022 80,000 173,600 50,000 25,000 (5 ) 6.28 May 7, 2018 25,000 50,000 (6 ) 7.09 Feb. 28, 2019 23,333 46,667 (6 ) 6.71 Aug. 31, 2019 — 295,000 (7 ) 2.75 Mar. 3, 2020 David Hardy 150,000 — * 5.90 March 1, 2020 8,334 18,085 100,000 — * 8.40 March 9, 2021 23,334 50,635 100,000 — * 5.83 Feb. 28, 2022 35,000 75,950 50,000 25,000 (8 ) 6.28 May 7, 2018 33,333 66,667 (9 ) 7.09 Feb. 28, 2019 — 145,000 (10 ) 2.75 March 3, 2020 Lawrence West — 200,000 (4 ) 3.69 May 11, 2020 20,000 43,400 Carlos Monges — — — — — — Option Awards Stock Awards Name Number of
Securities
Underlying
Unexercised
Options
(#)
Exercisable Number of
Securities
Underlying
Unexercised
Options
(#)
Unexercisable Option
Exercise
Price
($) Option Expiration
Date Number of
Shares or Units
That Have Not
Vested
(#) Market Value of
Unearned Units
That Have Not
Vested ($)(2) Equity Incentive
Plan Awards:
Number of
Unearned Shares,
Units or Other
Rights That Have
Not Vested
(#) Equity Incentive
Plan Awards:
Market or Payout
Value of Unearned
Shares, Units or
Other Rights That
Have Not Vested
($)(2) Gary S. Guidry 400,000 200,000 (1) 3.69 May 11, 2020 31,667 (7) 85,501 63,500 127,000 (5) 2.66 March 1, 2021 212,704 (8) 574,301 375,360 (3) 1,013,472 0 184,200 (6) 2.57 March 2, 2022 105,300 (9) 284,310 520,000 (4) 1,404,000 Ryan Ellson 233,333 116,667 (1) 3.69 May 11, 2020 20,000 (7) 54,000 46,000 92,000 (5) 2.66 March 1, 2021 154,088 (8) 416,038 271,920 (3) 734,184 0 133,400 (6) 2.57 March 2, 2022 76,399 (9) 206,278 377,280 (4) 1,018,656 Adrian Coral 10,000 — 2.51 December 15, 2018 8,334 (10) 22,502 23,000 — 5.90 March 3, 2020 19,992 (8) 53,978 35,280 (3) 95,256 16,312 — 8.40 March 9, 2021 42,509 (9) 114,774 209,920 (4) 566,784 7,500 — 5.83 Feb. 28, 2022 8,865 — 7.09 Feb. 28, 2019 20,500 — 6.45 Aug. 10, 2019 56,666 28,334 2.75 Mar. 3, 2020 5,966 11,934 2.66 Mar. 1, 2021 0 74,200 2.57 Mar. 2, 2022 Jim Evans 133,333 66,667 (1) 3.69 May 11, 2020 6,667 (7) 18,001 27,200 54,400 (5) 2.66 March 1, 2021 91,120 (8) 246,024 160,800 (3) 434,160 0 78,900 (6) 2.57 March 2, 2022 45,198 (9) 122,035 233,200 (4) 602,640 Lawrence West 133,333 66,667 (1) 3.69 May 11, 2020 6,667 (7) 18,001 27,200 54,400 (5) 2.66 March 1, 2021 91,120 (8) 246,024 160,800 (3) 434,160 0 78,900 (6) 2.57 March 2, 2022 45,198 (9) 122,035 233,200 (4) 602,640 David Hardy 150,000 — 5.90 August 30, 2018 — — — — 100,000 — 8.40 August 30, 2018 100,000 — 5.83 August 30, 2018 75,000 — 6.28 August 30, 2018 100,000 — 7.09 August 30, 2018 145,000 — 2.75 August 30, 2018 29,100 — 2.66 August 30, 2018 *Fully Vested Calculated using $2.17 which is the closing price of Gran Tierra's shares on December 31, 2015.62(2)Includes accelerated vesting pursuant to Mr. Scott's amended employment agreement with us.(3) Includes accelerated vesting pursuant to Mr. Rozon's amended employment agreement with us.(4)The right to exercise the option will vest one-third on May 12, 2016, one-third on May 12, 2017 and the remaining one-third on May 12, 2018, as long as the option holder is still employed by Gran Tierra on that date.(2) Calculated using $2.70 which is the closing price of Gran Tierra’s shares on December 29, 2017. (3) These amounts include the tranches (representing 60% of the target amount) of the PSU award granted in March of 2016 the vesting of which is still subject to company performance. The applicable performance period for the third tranche (representing 20% of the target amount) is January 1, 2018 through December, 2018. The fourth tranche (representing 40% of the target amount) has a performance period which began on January 1, 2016 and will end on December 31, 2018. Because our performance during 2016 exceeded target, the amounts above represent the maximum number of the PSUs that may vest. The actual number of PSUs that vest pursuant to the PSU award granted in March of 2016 will depend on our performance over the applicable performance periods and the NEOs continued employment through the date of settlement. 57 (4) These amounts include the tranches (representing 80% of the target amount) of the PSU award granted in March of 2017 the vesting of which is still subject to company performance. The applicable performance period for the second tranche (representing 20% of the target amount) is January 1, 2018 through December 31, 2018, and the applicable performance period for the third tranche (representing 20% of the target amount) is January 1, 2019 through December, 2019. The fourth tranche (representing 40% of the target amount) has a performance period which began on January 1, 2017 and will end on December 31, 2019. Because our performance during 2017 exceeded target, the amounts above represent the maximum number of the PSUs that may vest. The actual number of PSUs that vest pursuant to the PSU award granted in March of 2017 will depend on our performance over the applicable performance periods and the NEOs continued employment through the date of settlement. (5) The right to exercise the option will vest one-half on March 2, 2018 and one-half on March 2, 2019, in each case if the option holder is still employed by Gran Tierra on such date. (5)(6)The right to exercise the option became fully vestedwill vest one-third on February 28, 2016.March 2, 2018, one-third on March 2, 2019, and one-third on March 2, 2020, in each case if the option holder is still employed by Gran Tierra on such date.(6)(7)The right to exercise this portion of the optionRSUs will all vest on May 7, 2016 (per the amendment to Mr. Nightingale's employment agreement) provided12, 2018.(8) Provided that he remainsour NEOs remain employed through thatthe settlement date, these amounts represent the number of common shares, or if earlier, ontheir cash equivalent, deliverable to each NEO with respect to the first tranche (representing 20% of the target amount) of the PSU award granted in March of 2016. These amounts represent the actual number of common shares, or their cash equivalent, earned pursuant to the terms of the PSUs for the performance period from January 1, 2016 through December 31, 2016. This tranche became earned at 178% of target. The awards are enumerated in this column because while the performance element of vesting for the awards has been fulfilled, the continued service requirement for vesting has not. If the NEOs do not remain employed through the settlement date, they will forfeit the awards. As such, the awards were not fully vested as of his termination of employment by Gran Tierra or due to his resignation for good reason (as defined in the amendment to his employment agreement).December 31, 2016.(7)(9)The right to exercise one-third of this option vested on March 4, 2016, and the remaining two-thirds on May 7, 2016 (per the amendment to Mr. Nightingale's employment agreement) providedProvided that he remainsour NEOs remain employed through thatthe settlement date, these amounts represent the number of common shares, or if earlier, ontheir cash equivalent, deliverable to each NEO with respect to the first tranche (representing 20% of the target amount) of the PSU award granted in March of 2017. These amounts represent the actual number of common shares, or their cash equivalent, earned pursuant to the terms of the PSUs for the performance period from January 1, 2017 through December 31, 2017. This tranche became earned at 162% of target. The awards are enumerated in this column because while the performance element of vesting for the awards has been fulfilled, the continued service requirement for vesting has not. If the NEOs do not remain employed through the settlement date, they will forfeit the awards. As such, the awards were not fully vested as of his termination of employment by Gran Tierra or due to his resignation for good reason (as defined in the amendment to his employment agreement).December 31, 2017.(8)(10)The right to exercise this portion of the optionRSUs vested on March 1, 2016.2018(9)The right to exercise this portion of the option vested one-half on February 28, 2016 and the remaining one-half will vest on May 7, 2016 (per the amendment to Mr. Hardy's employment agreement).(10)The right to exercise the option vested one-third on March 4, 2016, and the remaining two-thirds will vest on May 7, 2016 (per the amendment to Mr. Hardy's Employment Agreement) provided that he remains employed through each date or, if earlier, on the date of his termination of employment by Gran Tierra or due to his resignation for good reason (as defined in the amendment to his employment agreement).shares for which options were exercised and stock awardsRSUs that vested during the fiscal year ended December 31, 2015,2017, for the Named Executive Officers. Option Awards Stock Awards Name Gary S. Guidry — — — — Jeffrey Scott 150,000 277,500 — — Dana Coffield 200,000 25,014 — — Ryan Ellson — — — — James Rozon — — 155,000 445,025 Duncan Nightingale — — 25,832 63,888 David Hardy — — 19,999 50,597 Lawrence West — — — — Carlos Monges — — 13,883 35,124 Stock Awards Name Gary S. Guidry 31,667 79,168 Ryan Ellson 20,000 50,000 Adrian Coral 11,639 29,381 Jim Evans 6,667 16,668 Lawrence West 6,667 16,668 David Hardy -- - (1) All RSUs that vested during 20152017 were settled in cash, and no shares of common stock were issued.(2) RepresentsThe amounts in this column were calculated by multiplying the number of shares of common stock subject to the RSU that vested by the closing market price of common stock on the date the shares of common stock subject to the stock award vested multiplied by the number of shares vested.vesting date.58 PAYMENTSPAYMENT UPON TERMINATION OR CHANGE INOF CONTROLActual Terminations of Employment During 2015CoffieldMr. Coffield ceased to be the President and Chief Executive Officer on February 2, 2015. Pursuant to Mr. Coffield’s Executive Employment Agreement, he was entitled to a separation package equal to two times his base salary plus bonus earned during the 12 months prior to his termination of employment. Such payment equated to $1,530,347 (CAD $2,118,000) and was deferred until August 4, 2015 at the election of Mr. Coffield. Mr. Coffield forfeited any unvested RSUs and unvested or unexercised stock options in connection63with his termination of employment. Mr. Coffield was required to, and did, timely enter into a release of claims in order to receive this severance payment.Mr. ScottMr. Scott ceased to be Chairman of the Board on June 24, 2015. Hardyhis termination ofMr. Hardy’s retirement from employment the vesting of 485,000 stock options were accelerated in accordance with Mr. Scott’s employment agreement, as amended. The value of this acceleration is estimated to be $360,000, which represents the difference between the closing market price of our common stock as of the last day of Mr. Scott’s employment and the exercise price of each the stock option that was accelerated. Foron August 30, 2017, we entered into a summary of Mr. Scott’s employment agreement and the amendment thereto please see the section of the Compensation Discussion & Analysis entitled “Employment Agreements Entered into or Amended During 2015.” Mr. Scott did not receive any other payments or benefits in connection with his termination of employment. He ceased to serve as Chairman of the Board effective June 24, 2015.Mr. RozonMr. Rozon ceased to be an employee of the Company on June 30, 2015. Pursuant to Mr. Rozon’s employment agreement, as amended, we provided him with a cash payment equal to $525,108, which represents 1.5 times all base salary and bonus amounts either payable or paid during the 12 months preceding Mr. Rozon’s termination of employment. Additionally, the vesting of 117,500 RSUs and 387,500 stock options was accelerated effective as of his termination date. The value of this acceleration of vesting is estimated to be $401,950, which, for RSUs represents the closing market price of a share of our common stock on Mr. Rozon’s last day of employment multiplied by the number of RSUs that vested andSeverance Agreement providing for the stock options represents the difference between the closing market price of our common stock as of the last day of Mr. Rozon’s employment and the exercise price each stock option that was accelerated. For a summary of the amendment to Mr. Rozon’s employment please see the section of the Compensation Discussion & Analysis entitled “Employment Agreements Entered into or Amended During 2015.” Mr. Rozon executed a release of claims.Mr. MongesOur employment agreement with Mr. Monges contained a termination provision, which provided that Mr. Monges would receive severance payments in the event he was terminated without cause and has the legal right to severance under Peruvian labor laws. Mr. Monges ceased to be the President, Peru on July 1, 2015. Pursuant to Mr. Monges’ employment agreement, we provided him with severance payments equal to $246,336 which represents 0.8 times the base salary and bonus amounts either paid or payable to Mr. Monges during the 12 months preceding his termination of employment.Termination of Employment and Change of Control Provisions Applicable to Continuing Named Executive OfficersMessrs. Nightingale and HardyDuring 2015, each of Messrs. Nightingale and Hardy entered into an amendment to their respective employment agreements with Gran Tierra which provide that:(1)·within 30 days of termination of the executive’s employment with us, whether by us, by the executive (including, without limitation, termination for good reason) or by death or permanent disability of the executive, the executive will be entitled to receive aLump sum cash payment equal to the greater of:of $680,351, excluding vacation pay; anda.·$750,867 for Mr. NightingaleAll outstanding and $476,879 for Mr. Hardy; orb.2 times for Mr. Nightingale and 1.5 times for Mr. Hardy multiplied by all base salary and bonus amounts either payable or paid during the 12 months preceding the executive’s termination of employment;(2)acceleration of the executive’s equity awards upon the earlier to occur, if any, of May 7, 2016 (if still employed with Gran Tierra on that date), the date Gran Tierra terminates his employment, and the date the executive resigns for good reason (as defined below); and(3)subject to approval by the Toronto Stock Exchange, the post-termination exercise period of the executive’svested stock options will be extended to the earlier to occur of one year from the date of termination of employment and the original expiration date of the stock option.remain exercisable through August 30, 2018.As defined in the amendment to the employment agreements with Messrs. Nightingale and Hardy, “good reason” generally means any of the following without the executive’s express written consent:(a) an adverse change in position, titles, duties or responsibilities, except in connection with the termination of employment for cause (as defined below);64(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 are similarly reduced or any change in the basis upon which the Executive’s annual compensation is determined or paid if the change is adverse to the executive (excluding changes to the annual bonus);(c) a change in control (as defined below) of Gran Tierra Energy Inc. or Gran Tierra Energy Canada ULC occurs; or(d) any breach by the Company of any material provision of the employment agreement.As defined in the amendment to the employment agreements with Messrs. Nightingale and Hardy, “change in control” generally means any of the following (note, “Company” includes either Gran Tierra Energy Inc. or Gran Tierra Energy Canada ULC):(1) a sale of all or substantially all of the assets of the Company;(2) a merger or consolidation in which the Company is not the surviving corporation;(3) 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 into other property; or(4) the acquisition by any person, entity or group of securities of the Company representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of directors.As defined in the amendment to the employment agreements with Messrs. Nightingale and Hardy, “cause” generally means any of the following:(i) participation in a fraud or dishonesty against the company;(ii) participation in an act of dishonesty against the company intended to result in your personal enrichment;(iii) the intentional making by the executive of any material personal profit at the expense of the company without the prior written consent of the company;(iv) willful material breach by the executive of a provision of the employment agreement or of the company’s written policies;(v) intentional significant damage to the company’s property; or(vi) conduct by you that, in the good faith and reasonable determination of the Board, demonstrates gross unfitness to serve, provided that the company will provide the executive a notice describing the nature of the gross unfitness and the executive will have ten (10) days to cure.The Company cannot terminate the executive’s employment for cause unless and until the executive receives a copy of a resolution adopted by at least a majority of the Board finding that in the good faith opinion of the Board that “cause” exists and specifying the particulars thereof in reasonable detail.named executive officersNEOs are entitled to severance payments in the event of an involuntary termination of employment by Gran Tierra other than for cause or a termination of employment by the named executive officerNEO for good reason, as follows: Base Salary + Bonus Earned during 12 months preceding
Termination multiplied by:Gary S. Guidry 2 Ryan Ellson 1.5 Adrian Coral 1 Jim Evans 1 Lawrence West 1 65USU.S. income tax return with the Internal Revenue Service, and if any of the payments or benefits received or to be received by him constitute “parachute payments” within the meaning of Section 280G of the Code and will be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), the Company shall pay to Mr. Guidry, no later than the time such Excise Tax is required to be paid by the Executive or withheld by the Company, an additional amount equal to the sum of the Excise Tax payable by Mr. Guidry, plus the amount necessary to put him in the same after-tax position as if no Excise Tax had been imposed.Total Termination payment $ 3,284,201 Gross-Up of taxable income 1,669,682 Total taxable income 4,953,883 Canadian tax payable (2,377,864) Net cash 2,576,019 U.S. Excise tax payable (868,235) Net after tax $ 1,707,785 The definition of “good reason”59 is“good reason” generally means any of the same asfollowing without the definition summarized above for Messrs. Nightingale and Hardy.(a) an adverse change in position, titles, duties or responsibilities, except in connection with the termination of 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 are similarly reduced or any change in the basis upon which the Executive’s annual compensation is determined or paid if the change is adverse to the executive (excluding changes to the annual bonus); (c) a change in control (as defined below) of Gran Tierra Energy Inc. or Gran Tierra Energy Canada ULC occurs; or (d) any breach by the Company of any material provision of the employment agreement. (1) a sale of all or substantially all of the assets of the Company; (2) a merger or consolidation in which the Company is not the surviving corporation; (3) 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 into other property; or (4) the acquisition by any person, entity or group of securities of the Company representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of directors. (1) a disposition of all or substantially all of the assets of Gran Tierra or GTE ULC;(2) a majority of the voting securities of Gran Tierra Energy Canada ULC cease to be controlled, directly or indirectly, by Gran Tierra; or(c) a merger or other transaction of Gran Tierra with or into another company pursuant to which any person or combination of persons thereafter holds a greater number of voting securities of the continuing company than the number of voting securities of the continuing company held by former shareholders of Gran Tierra Energy, Inc.(1) a disposition of all or substantially all of the assets of Gran Tierra or GTE ULC; (2) a majority of the voting securities of Gran Tierra Energy Canada ULC cease to be controlled, directly or indirectly, by Gran Tierra; or (3) a merger or other transaction of Gran Tierra with or into another company pursuant to which any person or combination of persons thereafter holds a greater number of voting securities of the continuing company than the number of voting securities of the continuing company held by former shareholders of Gran Tierra Energy, Inc. Ellison,Ellson, Coral, Evans and West forfeit any unvested RSUs and stock options.60 2007 Equity Incentive PlanExcept as otherwise stated in the 2007 Equity Incentive Plan, in the event of specified significant corporate transactions (as defined in the 2007 Equity Incentive Plan), such as a sale or other disposition of all or substantially all of Gran Tierra’s assets, a sale of at least 50% of Gran Tierra’s outstanding securities, a merger in which Gran Tierra is not the surviving entity, or a merger in which Gran Tierra is the surviving entity, but Gran Tierra’s common stock outstanding immediately prior to the transaction is exchanged or converted into other property, any surviving corporation or acquiring corporation may assume, continue or substitute similar awards for any or all outstanding stock awards under the 2007 Equity Incentive Plan. If the acquiring company assumes, continues or substitutes the awards under the plan, then any awards that are held by employees, including the named executive officers, performing services for Gran Tierra or any of Gran Tierra’s affiliates at the time of the transaction will vest and become fully exercisable in connection with the transaction and any repurchase rights held by Gran Tierra with respect to such awards shall lapse. Any awards that are not assumed, continued or substituted will not accelerate and shall be terminated if not exercised prior to the effective date of the corporate transaction.2015,2017, for the named executive officersNEOs using $2.17,$2.70, the closing price of the stock on that date.66: Acceleration of Vesting Name Severance Payment ($) Termination without Cause or Resignation for Good Reason — — 1,086,911 1,086,911 Corporate Transaction — 206,150 — 206,150 Termination without Cause or Resignation for Good Reason following a Corporate Transaction — 206,150 1,086,911 1,293,061 Ryan Ellson Termination without Cause or Resignation for Good Reason — — 447,827 447,827 Corporate Transaction — 130,200 — 130,200 Termination without Cause or Resignation for Good Reason following a Corporate Transaction — 130,200 447,827 578,027 Termination without Cause or Resignation for Good Reason — 267,637 967,630 1,235,267 Corporate Transaction — 267,637 — 267,637 Termination without Cause or Resignation for Good Reason following a Corporate Transaction — 267,637 967,630 1,235,267 Termination without Cause or Resignation for Good Reason — 144,670 456,936 601,606 Corporate Transaction — 144,670 — 144,670 Termination without Cause or Resignation for Good Reason following a Corporate Transaction — 144,670 456,936 601,606 Lawrence West Termination without Cause or Resignation for Good Reason — — 280,538 280,538 Corporate Transaction — 43,400 — 43,400 Termination without Cause or Resignation for Good Reason following a Corporate Transaction — 43,400 280,538 323,938 Acceleration of Vesting Name Gary S. Guidry(2) Termination without Cause or Resignation for Good Reason 1,445,994 — — — 1,445,994 Corporate Transaction — 29,026 85,501 1,723,680 1,838,207 Termination without Cause or Resignation for Good Reason following a Corporate Transaction 1,445,994 29,026 85,501 1,723,680 3,284,201 Ryan Ellson Termination without Cause or Resignation for Good Reason 781,985 — — — 781,985 Corporate Transaction — 21,022 54,000 1,248,480 1,323,502 Termination without Cause or Resignation for Good Reason following a Corporate Transaction 781,985 21,022 54,000 1,248,480 2,105,487 Adrian Coral Termination without Cause or Resignation for Good Reason 396,600 — — — 396,600 Corporate Transaction — 10,123 22,502 433,620 466,245 Termination without Cause or Resignation for Good Reason following a Corporate Transaction 396,600 10,123 22,502 433,620 862,845 Jim Evans Termination without Cause or Resignation for Good Reason 389,797 — — — 389,797 Corporate Transaction — 12,433 18,001 738,450 768,884 Termination without Cause or Resignation for Good Reason following a Corporate Transaction 389,797 12,433 18,001 738,450 1,158,681 Lawrence West Termination without Cause or Resignation for Good Reason 375,448 — — — 375,448 Corporate Transaction — 12,433 18,001 738,450 768,884 Termination without Cause or Resignation for Good Reason following a Corporate Transaction 375,448 12,433 18,001 738,450 1,144,332 (1) Unvested equity awards will accelerate and become fully vested immediately prior to a Corporate Transaction. With respect to stock options, the value is calculated as (a) the difference between $2.17,$2.70, the closing price of our common stock on December 31, 2015,29, 2017, and the exercise price of the applicable option, multiplied by (b) the number of unvested options subject to accelerated vesting held by the applicable named executive officer. As of December 31, 2015, all stock options held by the named executive officers in the table above had an exercise price that was greater than $2.17. As such, no value is reported with respect to the stock options held by the named executive officers in the table above.NEO. With respect to RSUs, the value is calculated as (a) $2.17,$2.70, the closing price of our common stock on December 31, 2015,29, 2017, multiplied by (b) the number of unvested RSUs subject to accelerated vesting held by the applicable named executive officer.NEO. With respect to PSUs, the value is calculated as (a) $2.70, the closing price of our common stock on December 29, 2017, multiplied by (b) the number of unvested PSUs subject to accelerated vesting held by the applicable NEO, assuming a performance factor of 1.(2) Under the terms of Mr. Guidry'sGuidry’s employment agreement, as he is required to file a USU.S. income tax return with the Internal Revenue Service, and as certain payments or benefits received or to be received by him constitute “parachute payments” within the meaning of Section 280G of the Code and will be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), the Company shall pay to Mr. Guidry, no later than the time such Excise Tax is required to be paid by the Executive or withheld by the Company, an additional amount equal to the sum of the Excise Tax payable by Mr. Guidry, plus the amount necessary to put him in the same after-tax position as if no Excise Tax had been imposed. In 2015,2017, this amount would have been $409,894.$1,669,682, calculated as follows:Total termination payment $ 3,284,201 Gross-Up of taxable income 1,669,682 Total taxable income 4,953,883 Canadian tax payable (2,377,864) Net cash 2,576,019 US Excise tax payable (868,235) Net after tax $ 1,707,785 (3)61In May 2015, in connection with the settlement agreement with West Face Capital Inc., each of Duncan Nightingale, James Rozon and David Hardy (each, an “executive”) entered into an amendment to their respective employment agreements with Gran Tierra which provide that: (1) upon the executive ceasing to be employed by Gran Tierra, the executive will be entitled to receive the cash severance payment to which he would have been entitled under his then current employment agreement if his employment with Gran Tierra was terminated following a change of control of Gran Tierra; (2) that the executive’s equity awards will vest67uponPAY RATIO DISCLOSUREearliermedian employee, we prepared a list of all employees as of December 31, 2017. Consistent with applicable rules, we used reasonable estimates both in the methodology used to occur, if any, of May 7, 2016 (if still employed with Gran Tierra on that date),identify the date Gran Tierra terminates his employment,median employee and in calculating the annual total compensation for employees other than the chief executive officer. In measuring our employees’ total compensation, for employees other than the Chief Executive Officer, we used their base salary paid in 2017, their annual cash bonus paid in 2017 and the date the executive resigns for good reason (as defined in the amendment); and (3) subject to approval by the Toronto Stock Exchange, the post-termination exercise periodvalue of the executive’s stock options willequity awards they received in 2017. Total compensation for Gary S. Guidry, the Company’s Chief Executive Officer was determined to be extended to$1,776,306 and was approximately 24 times the earlier to occur of one year from the date of termination of employment and the original expiration date of the stock option. In addition, Mr. Nightingale’s amendment to employment agreement provided that Mr. Nightingale receive a retention bonus of $108,382 if (a) he does not terminate his employment with Gran Tierra prior to November 7, 2015, or (b) Gran Tierra breaches the employment agreement or terminates Mr. Nightingale employment with Gran Tierra prior to six months from the date of the amendment to employment agreement. This retention bonus payment was paid to Mr. Nightingale in November 2015.2015 DIRECTOR COMPENSATIONThe following table shows for the fiscal year ended December 31, 2015, certain information with respect to themedian annual compensation of all non-employee directorsCompany employees excluding the Chief Executive Officer of Gran Tierra:Name Total ($) $ 29,143 $ 29,354 $ 64,027 $ 64,095 $ 128,122 J. Scott Price $ 116,134 $ 93,228 $ 209,362 $ 75,403 $ 64,095 $ 139,497 Peter Dey $ 44,549 $ 132,939 $ 177,485 Evan Hazell $ 33,782 $ 109,858 $ 143,638 Robert Hodgins $ 60,910 $ 132,939 $ 193,846 Ron Royal $ 45,345 $ 132,939 $ 178,281 David Smith $ 43,611 $ 132,939 $ 176,547 Brooke Wade $ 39,480 $ 109,858 $ 149,336 Plan category (a)
Number of securities
to be issued
upon exercise of
outstanding options(1) (b)
Weighted average
exercise price of
outstanding options (c)
Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in column
(a)(2) Equity compensation plans approved by security holders 8,960,692 3.65 17,280,233 Equity compensation plans not approved by security holders — — — 8,960,692 3.65 17,280,233 (1) All compensationIncludes shares reserved to non-employee directors is paid in Canadian dollars and converted into U.S. dollars for the purposes of the above table. See “Presentation in U.S. Dollars” above for conversion rates.(2)Assumptions made in the valuation ofbe issued pursuant to stock options granted, are discussed in Note 7 to Gran Tierra’s 2015 Consolidated Financial Statements, which can be found in Item 8representing 2.3% of the Form 10-K filed withCompany’s issued and outstanding shares, pursuant to the SEC on February 29, 2016. Reflects 2007 Equity Incentive Plan (“the aggregate grant date fair value computedPlan”), which is an amendment and restatement of our 2005 Equity Incentive Plan. This does not include any shares reserved to be issued relating to PSUs, DSUs and RSUs, which may be settled in accordance with ASC 718. Each director received only one option grant awardcash or in 2015, the fair market valueshares of our common stock at our election, and for which management’s intent to cash settle is reflected in the table.financial statement classification of these awards as financial liabilities.(3)(2)Mr. Scott was paid director feesIn accordance with Item 201(d) of Regulation S-K, the figure in this column represents the total number of shares of our common stock remaining available for issuance under the period where he was consideredPlan as of December 31, 2017, representing 4.5% of the Company’s issued and outstanding shares, minus the awards reported in column (a), above. Note, pursuant to bethe terms of the Plan, the pool of shares available for grant thereunder is not actually reduced until an independent director. Mr. Scott was not an independent director from February 2, 2015award is settled in shares of our common stock (as opposed to May 7, 2015 and ceased to be a director on June 24, 2015. See section Summary Compensation table which discusses fees paid to Mr. Scott for acting as Executive Chairman duringreducing the period February 2, 2015 to May 7, 2015.(4)Mr. Kirton ceased to be a director on June 24, 2015. All unexercised stock options held by Mr. Kirton will expire on June 24, 2016.(5)Mr. Macey ceased to be a director on June 24, 2015. All unexercised stock options held by Mr. Macey will expire on June 24, 2016.(6)pool at the time of grant) At December 31, 2015,2017, PSUs, DSUs and RSUs with respect to 6,709,809 shares were issued and outstanding and, after application of the following non-employee directors held optionsfungible factor of 1.55, these outstanding awards would represent a 10,400,204 reduction to purchase the followingsecurities remaining available for future issuance under the Plan if such awards were to be equity settled. Consistent with accounting treatment that reflects management’s intent to cash settle, these amounts are not included in the above table as a reduction in the securities remaining available for future issuance. Pursuant to the provisions of the Plan, the number of shares:securities remaining available for issuance is reduced by the aggregate balance of (i) stock options exercised and outstanding at a fungible factor of 1.0 shares and (ii) unit based awards at a fungible factor of 1.55 shares for each share of our common stock issued pursuant to any equity settled awards granted under the Plan. Accordingly, the number of shares available for future awards under the Plan may be different than the amount shown in this column.68NameSharesPeter Dey85,000Evan Hazell85,000Robert Hodgins85,000Scott Price585,000Ron Royal85,000David Smith85,000Brooke Wade85,000Allpaid toplan approved by our directors who are alsostockholders is our named executive officers for service during 2015 is described in the preceding sections of this proxy statement under the heading “Executive Compensation and Related Information.”Each non-employee director received the following compensation for 2015:An annual fee of $25,289 ($32,514 for the Lead Independent Director);Additional fees of: $21,676 for the audit committee chair; $16,257 for the compensation committee chair; $10,838 for each other committee chair; $10,838 for each audit committee member other than the chair; $9,032 for each compensation committee member other than the chair; and $7,225 for each other committee member other than the chair;A fee of $867 for each Board or committee meeting attended; andA stock option to purchase 55,000 shares (other than the Lead Independent Director, who received a stock option to purchase 80,000 shares) of common stock of Gran Tierra under Gran Tierra’s 2007 Equity Incentive Plan (the “Plan”), which is an amendment and restatement of our 2005 Equity Plan (the “Prior Plan”).62 · one share for each share subject to an outstanding option or stock appreciation right that expires, terminates for any reason prior to exercise or settlement or that is forfeited or otherwise returns because of the failure to meet a contingency or condition required to vest such shares; · 1.55 shares for each share subject to a Full Value Award that is forfeited or otherwise returns because of the failure to meet a contingency or condition required to vest such shares or the Full Value Award otherwise terminates without all of the shares covered by the Full Value Award having been issued; and · 1.55 shares for each share subject to a Full Value Award that is reacquired or withheld or not issued to satisfy a tax withholding obligation. · shares are not delivered to a participant because an option or stock appreciation right is exercised through a reduction in the number of shares subject to the stock award (a “net exercise”); · shares are reacquired or withheld or not issued to satisfy a tax withholding obligation in connection with an option or stock appreciation right; · shares are used as consideration for the exercise of an option or stock appreciation right; or · shares are repurchased by Gran Tierra on the open market with the proceeds of an option or stock appreciation right exercise price. equal toof at least 100% of the fair market value on the date of grant covering more than 1,000,000 (0.3%) shares of common stock during any calendar year. The maximum number of shares which may be reserved for issuance to insiders, at any time, under the Plan, and any other share compensation arrangement of Gran Tierra shall be 10% of the shares of common stock issued and outstanding. Additionally, the maximum number of shares of common stock which may be issued under the Plan, at any time, and any other share compensation arrangements within any 12-month period shall be 10% of the common stock outstanding for insiders as a group and 5% of the common stock outstanding for any one insider and such insider’s associates. The maximum number of options that may be granted to any one consultant in any 12-month period shall not exceed 2% of the issued and outstanding common stock at the time of grant.63 64 term.period. Although DSUs vest immediately, directors are not eligible to receive payment until such time as they are no longer a director of the Company.65 66 69RELATED PERSON TRANSACTIONS POLICY AND PROCEDURESapprovingrecommending to the Board the approval or disapprovingdisapproval of any related person transactions, as defined under Regulation S-K, Item 404. In addition, potential related persons transactions are to be referred to the Chief Executive Officer, and brought to the attention of the full Board if material.CERTAIN RELATED-PERSON TRANSACTIONSNevadaDelaware law and Gran Tierra’s Bylaws.20172019 annual meeting of stockholders may do so by following the procedures set forth in Rule 14a-8 under the Exchange Act and must submit their proposals to us at our principal executive offices (to the Corporate Secretary at 200, 150-13th900, 520 - 3rd Avenue S.W., Calgary, Alberta, T2R 0V2, Canada)Canada T2P 0R3), not later than the close of business on January 11, 2017.November 21, 2018. If the date of the 20172019 annual meeting is changed by more than 30 days from the date of the 20162018 annual meeting, the deadline for submitting proposals is a reasonable time before we begin to print and mail the proxy materials for our 2017 Annual Meeting.2019 annual meeting. There is no minimum number of shares required to be held by a stockholder interested in submitting a proposal for inclusion in our proxy materials.20172019 annual meeting of stockholders only by sending to our Corporate Secretary a notice containing the information required by our Bylaws no earlierBylaws. Notice to us must be made not less than 30 or more than 65 days prior to the closedate of businessthe annual meeting; provided, however, that if the annual meeting is to be held on March 25, 2017 and noa date that is less than 50 days after the date on which the public announcement of the date of the annual meeting was made by Gran Tierra, notice may be made not later than the close of business on April 24, 2017. If we schedule our 2017the 10th day following the day on which public announcement of the date of the annual meeting to a date that is more than 30 days before or 60 days after June 23, 2017, then such notice must be given no earlier than the close of business 90 days, and no later than the close of business 60 days, before the rescheduled meeting, or notice must be given within 10 days following the date public notice of the rescheduled meeting is givenfirst made by us.Gran Tierra. Detailed information about how to make stockholder proposals or nominations for our annual meetings of stockholders can be found in our Bylaws.67 Direct your writtenYou can also request toprompt delivery of a copy of the proxy statement and annual report by contacting Gran Tierra Energy Inc., Diane Phillips, Corporate Secretary, 200, 150900, 520 - 13th3 Avenue S.W., Calgary, Alberta, T2R 0V2, Canada T2P 0R3 or contact David Hardy, Vice President, Legal and General Counsel,by telephone at (403) 265-3221. Stockholders who currently receive multiple copies of the Notices of Internet Availability of Proxy Materials or multiple sets of annual meeting materials at their addresses and would like to request “householding” of their communications should contact their brokers.70 By Order of the Board of Directors /s/ Gary Guidry Gary S. Guidry President and Chief Executive Officer April [_____], 2016A copy of Gran Tierra’s Annual Report to the Securities and Exchange Commission
