THIS EMPLOYMENT AGREEMENT ("Agreement") is made on this 1st day of November, 2003 by and
between Far East Energy Corporation, a Nevada corporation ("Employer"), and Zhendong "Alex" Yang, a
resident of Texas ("Employee").
WHEREAS, Employer has employed Employee since September 15, 2002 and desires to continue employing
Employee as its Senior Vice President of Exploration and Production pursuant to the terms and conditions
WHEREAS, Employee possesses experience as a member of executive management of public and private
companies, including companies in the oil and gas industry, and desires to serve as Employer's Senior Vice
President of Exploration and Production; and
WHEREAS, in consideration for Employee's past and future services as Senior Vice President of Exploration
and Production of Employer, Employer desires to grant to Employee non-qualified options to purchase shares of
its common stock (the "Common Stock"), and Employee desires to receive partial payment for his services in
options to purchase shares of Common Stock.
NOW THEREFORE, with the above provisions incorporated herein by this reference, in consideration of the
mutual promises contained herein, the benefits to be derived by each party hereunder and other good and
valuable consideration, the sufficiency of which is hereby expressly acknowledged, the parties hereto mutually
agree as follows:
1. Employment. Employer hereby agrees to continue to employ Employee and Employee hereby agrees to
accept the continuation of full time employment as Senior Vice President of Exploration and Production of
Employer, upon the terms and conditions set forth in this Agreement.
2. Term. The employment of Employee by Employer pursuant to this Agreement shall commence on the date
hereof and end Five (5) years hereafter, unless sooner terminated pursuant to Section 4 below (hereinafter
referred to as the "Service Period").
3. Compensation. In consideration for the serv