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| FEEC.OB > SEC Filings for FEEC.OB > Form 8-K on 7-Oct-2009 | All Recent SEC Filings |
7-Oct-2009
Entry into a Material Definitive Agreement, Change in Directors or Principal
As previously disclosed, on March 13, 2009, Far East Energy (Bermuda), Ltd. ("FEEB"), a wholly-owned subsidiary of Far East Energy Corporation (the "Company"), and Arrow Energy International Pte Ltd ("Arrow") entered into a Farmout Agreement (the "Farmout Agreement") pursuant to which, subject to certain conditions, FEEB agreed to assign to Arrow 75.25% of its rights in the Production Sharing Contract for the Exploitation of Coalbed Methane Resources for the Qinnan Area in Shanxi Province, Qinshui Basin, the People's Republic of China dated April 16, 2002 between China United Coalbed Methane Corporation Ltd. and Phillips China Inc. (the "Assignment").
On October 6, 2009, FEEB and Arrow entered into an agreement (the "Amendment") to amend the Farmout Agreement by extending the deadline for satisfying the conditions to the Assignment from October 15, 2009 to November 20, 2009. Through the Amendment, FEEB and Arrow also agreed that interest on the Exchangeable Note, $10,000,000 principal amount, issued by FEEB to Arrow on March 13, 2009 (the "Exchangeable Note") will begin to accrue on October 16, 2009.
The descriptions of the Amendment, the Farmout Agreement and the Exchangeable Note set forth herein do not purport to be complete and are qualified in their entirety by the full text of the Amendment, the Farmout Agreement and the Exchangeable Note, which are attached as Exhibit 10.1 hereto and Exhibits 10.1 and 4.1 to the Current Report on the Company's Form 8-K previously filed with the Securities and Exchange Commission on March 13, 2008, respectively, and incorporated herein by reference.
On October 1, 2009, Phil A. Christian, Chief Operating Officer, President and Country Manager of FEEB, notified FEEB that he would resign from his positions with FEEB effective October 15, 2009. Under the Employment Agreement between Mr. Christian and FEEB dated March 12, 2008 (the "Employment Agreement"), Mr. Christian will continue to receive his base salary and benefits and all other amounts actually earned, accrued or owing as of the date of termination but not yet paid through the date of termination. In addition, Mr. Christian will receive $50,000 in cash from FEEB on the date of termination. Following Mr. Christian's departure, Michael R. McElwrath, Chief Executive Officer of the Company, will assume Mr. Christian's executive officer-level responsibilities, and Bob Hockert, Operations Manager for the Company in China, will assume his day-to-day operations duties.
The description of the Employment Agreement set forth herein does not purport to be complete and is qualified in its entirety by the full text of the Employment Agreement, which was attached as Exhibit 10.1 to the Current Report on the Company's Form 8-K previously filed with the Securities and Exchange Commission on March 13, 2008 and incorporated herein by reference.
On October 7, 2009, the Company issued a press release regarding the execution of the Amendment and the resignation of Mr. Christian. A copy of the press release is furnished pursuant to Regulation FD as Exhibit 99.1 to this report.
The information contained in Item 7.01 of this report and in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
(d) Exhibits
Exhibit
Number Description
10.1 Agreement between Far East Energy (Bermuda), Ltd. and Arrow Energy International Pte Ltd dated October 6, 2009.
99.1 Press release dated October 7, 2009.
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