Summary of FAR EAST ENERGY CORP

Item 1.01. Entry Into a Material Definitive Agreement; Item 5.02 Departure of
Directors or Principal Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

As previously disclosed in Far East Energy Corporation's (the "Company") Current Report on Form 8-K filed with the Securities and Exchange Commission on August 28, 2008, the Company appointed Andrew Lai to succeed Randall D. Keys, who notified the Company that he would resign as Chief Financial Officer effective October 1, 2008.

On October 1, 2008, the Company and Mr. Lai entered in an amended and restated employment agreement (the "Agreement") pursuant to which Mr. Lai will serve as the Company's Chief Financial Officer effective October 1, 2008. The Agreement will terminate on October 1, 2010, unless extended or earlier terminated. Pursuant to the Agreement, Mr. Lai will receive an initial base salary of $195,000. He may also receive discretionary bonuses as determined by the Compensation Committee of the Company in an amount up to 45% of his base salary. Mr. Lai will also receive options to purchase up to 100,000 shares of the Company's common stock and 45,000 shares of restricted stock. If Mr. Lai's employment is terminated without cause (as defined in the Agreement) or for good reason (as defined in the Agreement), he will receive a severance payment of 100% of his annual base salary; provided that if Mr. Lai's employment is so terminated on or within 24 months of a change in control (as defined in the Agreement), he will receive a severance payment of 200% of his annual base salary.

The preceding description of the Agreement is qualified in its entirety by reference to the Agreement that is filed with this Current Report on Form 8-K as Exhibit 10.1, and is incorporated by reference herein. For further information, see the Company's Current Report on Form 8-K filed on August 28, 2008, which is incorporated herein by reference.