Document:

Edgewater Foods International, Inc. Exhibit 10.11 11/07/07

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

SERIES J WARRANT TO PURCHASE

SHARES OF PREFERRED STOCK

OF

EDGEWATER FOODS INTERNATONAL, INC.

Expires: November [__], 2008

No.: W-J-07- __

Number of Shares: 747,870

Date of Issuance: November [__], 2007

FOR VALUE RECEIVED, the undersigned, Edgewater Foods International, Inc., a Nevada corporation (together with its successors and assigns, the "Issuer"), hereby certifies that ______________________________. or its registered assigns is entitled to subscribe for and purchase, during the Term (as hereinafter defined), up to seven hundred forty seven thousand eight hundred seventy (747,870) shares (subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid and non-assessable Preferred Stock of the Issuer, at an exercise price per share equal to the Warrant Price then in effect, subject, however, to the provisions and upon the terms and conditions hereinafter set forth.  Capitalized terms used in this Warrant and not otherwise defined herein shall have the respective meanings specified in Section 6 hereof.

1.

Term.  The term of this Warrant shall commence on November [__], 2007 and shall expire at 6:00 p.m., eastern time, on November [__], 2008 (such period being the "Term").

2.

Method of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange.

(a)

Time of Exercise.  The purchase rights represented by this Warrant may be exercised in whole or in part during the Term. 

(b)

Method of Exercise.  The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the exercise form attached hereto duly executed) at 

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the principal office of the Issuer, and by the payment to the Issuer of an amount of consideration therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares of Preferred Stock with respect to which this Warrant is then being exercised, payable by certified or official bank check or by wire transfer to an account designated by the Issuer.

(c)

Issuance of Stock Certificates.  In the event of any exercise of this Warrant in accordance with and subject to the terms and conditions hereof, certificates for the shares of Preferred Stock so purchased shall be dated the date of such exercise and delivered to the Holder hereof within a reasonable time, not exceeding three (3) Trading Days after such exercise (the “Delivery Date”), and the Holder hereof shall be deemed for all purposes to be the holder of the shares of Preferred Stock so purchased as of the date of such exercise. The Holder shall deliver this original Warrant, or an indemnification undertaking with respect to such Warrant in the case of its loss, theft or destruction, at such time that this Warrant is fully exercised. With respect to partial exercises of this Warrant, the Issuer shall keep written records of the number of shares of Preferred Stock exercised as of each date of exercise.

(d)

Transferability of Warrant.  Subject to Section 2(f) hereof, this Warrant may be transferred by a Holder, in whole or in part, without the consent of the Issuer.  If transferred pursuant to this paragraph, this Warrant may be transferred on the books of the Issuer by the Holder hereof in person or by duly authorized attorney, upon surrender of this Warrant at the principal office of the Issuer, properly endorsed (by the Holder executing an assignment in the form attached hereto) and upon payment of any necessary transfer tax or other governmental charge imposed upon such transfer.  This Warrant is exchangeable at the principal office of the Issuer for Warrants to purchase the same aggregate number of shares of Preferred Stock, each new Warrant to represent the right to purchase such number of shares of Preferred Stock as the Holder hereof shall designate at the time of such exchange.  All Warrants issued on transfers or exchanges shall be dated the Original Issue Date and shall be identical with this Warrant except as to the number of shares of Preferred Stock issuable pursuant thereto.

(e)

Continuing Rights of Holder.  The Issuer will, at the time of or at any time after each exercise of this Warrant, upon the request of the Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights to which such Holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant, provided that if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the Issuer to afford such rights to such Holder.

(f)

Compliance with Securities Laws.

(i)

The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Preferred Stock to be issued upon exercise hereof are being acquired solely for the Holder's own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Preferred Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and any applicable state securities laws.

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(ii)

Except as provided in paragraph (iii) below, this Warrant and all certificates representing shares of Preferred Stock issued upon exercise hereof shall be stamped or imprinted with a legend in substantially the following form:

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

(iii)

The Issuer agrees to reissue this Warrant or certificates representing any of the Preferred Stock, without the legend set forth above if at such time, prior to making any transfer of any such securities, the Holder shall give written notice to the Issuer describing the manner and terms of such transfer.  Such proposed transfer will not be effected until: (a) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that the registration of such securities under the Securities Act is not required in connection with such proposed transfer, (ii) a registration statement under the Securities Act covering such proposed disposition has been filed by the Issuer with the Securities and Exchange Commission and has become effective under the Securities Act and the Holder has represented that the Preferred Stock has been or will be sold or (iii) the Issuer has received other evidence reasonably satisfactory to the Issuer that such registration and qualification under the Securities Act and state securities laws are not required; and (b) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that registration or qualification under the securities or "blue sky" laws of any state is not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or "blue sky" laws has been effected or a valid exemption exists with respect thereto.  The Issuer will respond to any such notice from a holder within three (3) Trading Days.  In the case of any proposed transfer under this Section 2(f), the Issuer will use reasonable efforts to comply with any such applicable state securities or "blue sky" laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable to the Issuer.  The restrictions on transfer contained in this Section 2(f) shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Warrant.   

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(g)

Accredited Investor Status.  In no event may the Holder exercise this Warrant in whole or in part unless the Holder is an “accredited investor” as defined in Regulation D under the Securities Act.  

3.

Stock Fully Paid; Reservation and Listing of Shares; Covenants.

(a)

Stock Fully Paid.  The Issuer represents, warrants, covenants and agrees that all shares of Preferred Stock which may be issued upon the exercise of this Warrant or otherwise hereunder will, when issued in accordance with the terms of this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by or through the Issuer.  The Issuer further covenants and agrees that during the period within which this Warrant may be exercised, the Issuer will at all times have authorized and reserved for the purpose of issuance upon exercise of this Warrant a number of shares of Preferred Stock equal to at least one hundred percent (100%) of the aggregate number of shares of Preferred Stock to provide for the exercise of this Warrant.

(b)

Reservation.  If any shares of Preferred Stock are required to be reserved for issuance upon exercise of this Warrant or as otherwise provided hereunder require registration or qualification with any governmental authority under any federal or state law before such shares may be so issued, the Issuer will in good faith use its best efforts as expeditiously as possible at its expense to cause such shares to be duly registered or qualified.  

(c)

Covenants.  The Issuer shall not by any action including, without limitation, amending the Articles of Incorporation or the by-laws of the Issuer, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of the Holder hereof against dilution (to the extent specifically provided herein) or impairment.  Without limiting the generality of the foregoing, the Issuer will (i) not permit the par value, if any, of its Preferred Stock to exceed the then effective Warrant Price, (ii) not amend or modify any provision of the Articles of Incorporation or by-laws of the Issuer in any manner that would adversely affect the rights of the Holders of this Warrant, (iii) take all such action as may be reasonably necessary in order that the Issuer may validly and legally issue fully paid and nonassessable shares of Preferred Stock, free and clear of any liens, claims, encumbrances and restrictions (other than as provided herein) upon the exercise of this Warrant, and (iv) use its best efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be reasonably necessary to enable the Issuer to perform its obligations under this Warrant.

(d)

Loss, Theft, Destruction of Warrants.  Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated 

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Warrant, a new Warrant of like tenor and representing the right to purchase the same number of shares of Preferred Stock.

4.

Fractional Shares.  No fractional shares of Preferred Stock will be issued in connection with any exercise hereof, but in lieu of such fractional shares, the Issuer shall round the number of shares to be issued upon exercise up to the nearest whole number of shares.

5.

Registration Rights.  The Holder of this Warrant is entitled to the benefit of certain registration rights with respect to the shares of Common Stock issuable upon the conversion of the Preferred Stock issuable upon exercise of this Warrant pursuant to that certain Registration Rights Agreement, of even date herewith, by and among the Issuer and Persons listed on Schedule I thereto (the “Registration Rights Agreement”) and the registration rights with respect to such shares may only be assigned in accordance with the terms and provisions of the Registrations Rights Agreement.

6.

Definitions.  For the purposes of this Warrant, the following terms have the following meanings:

"Articles of Incorporation" means the Articles of Incorporation of the Issuer as in effect on the Original Issue Date, and as hereafter from time to time amended, modified, supplemented or restated in accordance with the terms hereof and thereof and pursuant to applicable law. 

“Board" shall mean the Board of Directors of the Issuer.

"Capital Stock" means and includes (i) any and all shares, interests, participations or other equivalents of or interests in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether general or limited) in any Person which is a partnership, (iii) all membership interests or limited liability company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type.

"Common Stock" means the Common Stock, $0.001 par value per share, of the Issuer and any other Capital Stock into which such stock may hereafter be changed.

"Expiration Date" means November [__], 2008.

"Governmental Authority" means any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission, board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign.

"Holders" mean the Persons who shall from time to time own any Warrant.  The term "Holder" means one of the Holders.

"Issuer" means Edgewater Foods International, Inc., a Nevada corporation, and its successors. 

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"Majority Holders" means at any time the Holders of Warrants exercisable for a majority of the shares of Preferred Stock issuable under this Warrant at the time outstanding.

"Original Issue Date" means November [__], 2007.

"OTC Bulletin Board" means the over-the-counter electronic bulletin board.

"Person" means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization, joint venture, Governmental Authority or other entity of whatever nature.

"Preferred Stock" means shares of the Company’s Series C Convertible Preferred Stock, par value $0.001 per share issued to the Purchasers pursuant to the Purchase Agreement.

"Purchase Agreement" means the Series C Convertible Preferred Stock Purchase Agreement dated as of November [__], 2007, among the Issuer and the Purchasers.

"Purchasers" means the purchasers of the Series C Convertible Preferred Stock and the Warrants issued by the Issuer pursuant to the Purchase Agreement.

"Securities" means any debt or equity securities of the Issuer, whether now or hereafter authorized, any instrument convertible into or exchangeable for Securities or a Security, and any option, warrant or other right to purchase or acquire any Security.  "Security" means one of the Securities.

"Securities Act" means the Securities Act of 1933, as amended, or any similar federal statute then in effect.

"Subsidiary" means any corporation at least 50% of whose outstanding Voting Stock shall at the time be owned directly or indirectly by the Issuer or by one or more of its Subsidiaries, or by the Issuer and one or more of its Subsidiaries.

"Term" has the meaning specified in Section 1 hereof.

"Trading Day" means (a) a day on which the Common Stock is traded on the OTC Bulletin Board, or (b) if the Common Stock is not traded on the OTC Bulletin Board, a day on which the Common Stock is quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting prices); provided, however, that in the event that the Common Stock is not listed or quoted as set forth in (a) or (b) hereof, then Trading Day shall mean any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other government action to close.

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"Voting Stock" means, as applied to the Capital Stock of any corporation, Capital Stock of any class or classes (however designated) having ordinary voting power for the election of a majority of the members of the Board (or other governing body) of such corporation, other than Capital Stock having such power only by reason of the happening of a contingency.

"Warrants" means the Warrants issued and sold pursuant to the Purchase Agreement, including, without limitation, this Warrant, and any other warrants of like tenor issued in substitution or exchange for any thereof pursuant to the provisions hereof or of any of such other Warrants. 

"Warrant Price" means $1.30.

"Warrant Share Number" means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased upon exercise of this Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the terms hereof.

7.

Other Notices.  In case at any time:

(A)

the Issuer shall make any distributions to the holders of Common Stock; or

(B)

the Issuer shall authorize the granting to all holders of its Common Stock of rights to subscribe for or purchase any shares of Capital Stock of any class or other rights; or

(C)

there shall be any reclassification of the Capital Stock of the Issuer; or

(D)

there shall be any capital reorganization by the Issuer; or

(E)

there shall be any (i) consolidation or merger involving the Issuer or (ii) sale, transfer or other disposition of all or substantially all of the Issuer's property, assets or business (except a merger or other reorganization in which the Issuer shall be the surviving corporation and its shares of Capital Stock shall continue to be outstanding and unchanged and except a consolidation, merger, sale, transfer or other disposition involving a wholly-owned Subsidiary); or

(F)

there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Issuer or any partial liquidation of the Issuer or distribution to holders of Common Stock;

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then, in each of such cases, the Issuer shall give written notice to the Holder of the date on which (i) the books of the Issuer shall close or a record shall be taken for such dividend, distribution or subscription rights or (ii) such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be, shall take place.  Such notice also shall specify the date as of which the holders of Common Stock of record shall participate in such dividend, distribution or subscription rights, or shall be entitled to exchange their certificates for Common Stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be.  Such notice shall be given at least twenty (20) days prior to the action in question and not less than ten (10) days prior to the record date or the date on which the Issuer's transfer books are closed in respect thereto.  This Warrant entitles the Holder to receive copies of all financial and other information distributed or required to be distributed to the holders of the Common Stock.

8.

Amendment and Waiver.  Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), by a written instrument or written instruments executed by the Issuer and the Majority Holders; provided, however, that no such amendment or waiver shall reduce the Warrant Share Number, increase the Warrant Price, shorten the period during which this Warrant may be exercised or modify any provision of this Section 8 without the consent of the Holder of this Warrant.  No consideration shall be offered or paid to any person to amend or consent to a waiver or modification of any provision of this Warrant unless the same consideration is also offered to all holders of the Warrants.

9.

Governing Law; Jurisdiction.  This Warrant shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction.  This Warrant shall not be interpreted or construed with any presumption against the party causing this Warrant to be drafted.  The Issuer and the Holder agree that venue for any dispute arising under this Warrant will lie exclusively in the state or federal courts located in New York County, New York, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that New York is not the proper venue.  The Issuer and the Holder irrevocably consent to personal jurisdiction in the state and federal courts of the state of New York.  The Issuer and the Holder consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing in this Section 9 shall affect or limit any right to serve process in any other manner permitted by law.  The Issuer and the Holder hereby agree that the prevailing party in any suit, action or proceeding arising out of or relating to this Warrant or the Purchase Agreement, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party.  The parties hereby waive all rights to a trial by jury.

10.

Notices.  Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery by telecopy, e-mail or facsimile at the address or number designated below (if delivered 

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on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be:

If to the Issuer:

Edgewater Foods International, Inc. 

400 Professional Drive, Suite 310 

Gaithersburg, Maryland 20879

Attention: Michael Boswell

Tel. No.: (240) 864-0449

Fax No.:  (240) 864-0450

with copies (which copies 

shall not constitute notice) 

to:

Leser, Hunter, Taubman & Taubman

17 State Street, Suite 1610

New York, New York  10004

Attention:  Louis E. Taubman

Tel. No.:  (212) 732-7184

Fax No.:  (212) 202-6380

If to any Holder:

At the address of such Holder set forth on Exhibit A to the Purchase Agreement or as specified in writing by such Holder with copies to:

with copies (which copies 

shall not constitute notice) 

to:

Sadis & Goldberg, LLP

551 Fifth Avenue – 21st Floor

New York, New York 10176

Attention: Ron Geffner 

Tel No.: (212) 573-6660

Fax No.: (212) 573-6661

Any party hereto may from time to time change its address for notices by giving written notice of such changed address to the other party hereto.

11.

Warrant Agent.  The Issuer may, by written notice to each Holder of this Warrant, appoint an agent having an office in New York, New York for the purpose of replacing this Warrant pursuant to Section 3(d) hereof, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office by such agent..

12.

Remedies.  The Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Issuer in the performance of or 

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compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.

13.

Successors and Assigns.  This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Preferred Stock issued pursuant hereto, and shall be enforceable by any such Holder or Holder of Preferred Stock.

14.

Modification and Severability.  If, in any action before any court or agency legally empowered to enforce any provision contained herein, any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency.  If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein.

15.

Headings.  The headings of the Sections of this Warrant are for convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the Issuer has executed this Series J Warrant as of the day and year first above written.

EDGEWATER FOODS INTERNATIONAL, INC.

By:

      Name: Michael Boswell

      Title:   Acting Chief Financial Officer 

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EXERCISE FORM

SERIES J WARRANT

EDGEWATER FOODS INTERNATIONAL, INC.

The undersigned _______________, pursuant to the provisions of the within Warrant, hereby elects to purchase _____ shares of Preferred Stock of Edgewater Foods International, Inc. covered by the within Warrant.

Dated: _________________

Signature

___________________________

Address

_____________________

_____________________

Number of shares of Common Stock beneficially owned or deemed beneficially owned by the Holder on the date of Exercise:_________________

The undersigned is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.

The Holder shall pay the sum of $________ by certified or official bank check (or via wire transfer) to the Issuer in accordance with the terms of the Warrant.   

ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto __________________ the within Warrant and all rights evidenced thereby and does irrevocably constitute and appoint _____________, attorney, to transfer the said Warrant on the books of the within named corporation.

Dated: _________________

Signature

___________________________

Address

_____________________

_____________________

PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto __________________ the right to purchase _________ shares of Preferred Stock evidenced by the within Warrant together with all rights therein, and does irrevocably constitute and appoint ___________________, attorney, to transfer that part of the said Warrant on the books of the within named corporation.

Dated: _________________

Signature

___________________________

Address

_____________________

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_____________________

FOR USE BY THE ISSUER ONLY:

This Warrant No. W-___ canceled (or transferred or exchanged) this _____ day of ___________, _____, shares of Preferred Stock issued therefor in the name of _______________, Warrant No. W-_____ issued for ____ shares of Preferred Stock in the name of _______________.

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      Exhibit
        10.52

       

      FAR
        EAST ENERGY CORPORATION

       

      NON-QUALIFIED
        STOCK OPTION AGREEMENT

       

      FOR
        GOOD
        AND VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Far
        East
        Energy Corporation (the "Company"), a Nevada corporation, hereby grants
        to William A. Anderson (the "Option Holder"), the option to purchase
        shares of the common stock, $0.001 par value per share, of the Company
        ("Shares"), upon the terms set forth in this stock option agreement (this
        "Agreement"):

      WHEREAS,
        the Option Holder has been granted the following award in connection with
        his or
        her retention to provide services to the Company;

      NOW,
        THEREFORE, in consideration of the premises and mutual covenants contained
        herein, the parties hereto agree as follows.

      1.           Grant.  The
        Option Holder is hereby granted an option (the "Option") to purchase
        210,000 Shares (the "Option Shares").  The Option is granted as
        of October 1, 2007 (the "Date of Grant").  This Option shall
        not be treated as an "incentive stock option" as defined in Section 422 of
        the
        Internal Revenue Code of 1986, as amended (the "Code").

      2.           Status
        of Option Shares.  The Option Shares shall upon issue rank equally
        in all respects with the other Shares.

      3.           Option
        Price.  The purchase price for the Option Shares shall be, except
        as herein provided, $1.05 per Option Share, hereinafter sometimes referred
        to as
        the "Option Price," payable immediately in full upon the exercise of the
        Option.

      4.           Term
        of Option.  The Option may be exercised only during the period
        (the "Option Period") set forth in Section 6 below and shall
        remain exercisable until the tenth anniversary of the Date of
        Grant.  Thereafter, the Option Holder shall cease to have any rights
        in respect thereof.

      5.           Exercisability.  Subject
        to the Option Holder's continued service with the Company and the terms and
        conditions of this Agreement, the Option will vest and become exercisable
        with
        respect to 25% of the Option Shares on the Date of Grant and with respect
        to an
        additional 25% of the Option Shares on each of the first, second and third
        anniversaries of the Date of Grant, so that the Option will be 100% vested
        and
        exercisable after the third anniversary of the Date of Grant, as set forth
        in
        the following schedule:

      

      
        	
                Timeframe
                  from Date of Grant

                (Vesting
                  Date)

              	 	
                 

                Vesting

              	 	
                 

                Cumulative
                  Vesting

              
	
                October
                  1, 2007 (Date of Grant)

              	 	
                25%

              	 	
                25%

              
	
                October
                  1, 2008 (1 year)

              	 	
                25%

              	 	
                50%

              
	
                October
                  1, 2009 (2 years)

              	 	
                25%

              	 	
                75%

              
	
                October
                  1, 2010 (3 years)

              	 	
                25%

              	 	
                100%

              

      

       

      6.           Exercise
        of Option.  The Option may be exercised for all, or from time to
        time any part, of the Option Shares for which it is then
        exercisable.  The exercise date shall be the date the Company receives
        a written notice of exercise signed by the Option Holder, specifying the
        whole
        number of Option Shares in respect of which the Option is being exercised,
        accompanied by (a) full payment for the Option Shares with respect to which
        the
        Option is exercised, in a manner acceptable to the Company (which, at the
        discretion of the Company, shall include a broker assisted exercise
        arrangement), of the Option Price for the Option Shares for which the Option
        is
        being exercised and (b) payment by the Option Holder of all payroll, withholding
        or income taxes incurred in connection with the Option exercise (or arrangements
        for the collection or payment of such tax satisfactory to the Compensation
        Committee of the Board of Directors of the Company (or if there is no such
        committee, then the Board of Directors of the Company) (the "Committee")
        are made).  The purchase price for the Shares as to which the Option
        is exercised shall be paid to the Company in full at the time of exercise
        at the
        election of the Option Holder (i) in cash, (ii) in Shares having a Fair Market
        Value (as defined below) equal to the aggregate Option Price for the Shares
        being purchased and satisfying such other requirements as may be imposed
        by the
        Committee; provided, that, such Shares have been held by the
        Option Holder for no less than six months, (iii) partly in cash and partly
        in
        such Shares, or (iv) through the delivery of irrevocable instructions to
        a
        broker to deliver promptly to the Company an amount equal to the aggregate
        Option Price for the Shares being purchased.  Anything to the contrary
        herein notwithstanding, the Company shall not be obligated to issue any Option
        Shares hereunder if the issuance of the Option Shares would violate the
        provision of any applicable law, in which event the

       

      
        
          
          

        

        
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      Company
        shall, as soon as practicable, take whatever action it reasonably can so
        that
        the Option Shares may be issued without resulting in such violations of
        law.

       

      For
        purposes of this Agreement, "Fair Market Value" shall mean, on a given
        date, the arithmetic mean of the high and low prices of the Shares as reported
        on such date on the Composite Tape of the principal national securities exchange
        on which such Shares are listed or admitted to trading, or, if no Composite
        Tape
        exists for such national securities exchange on such date, then on the principal
        national securities exchange on which such Shares are listed or admitted
        to
        trading, or, if the Shares are not listed or admitted on a national securities
        exchange, the arithmetic mean of the per Share closing bid price and per
        Share
        closing asked price on such date as quoted on the National Association of
        Securities Dealers Automated Quotation System (or such market in which such
        prices are regularly quoted), or, if there is no market on which the Shares
        are
        regularly quoted, the Fair Market Value shall be the value established by
        the
        Committee in good faith. If no sale of Shares shall have been reported on
        such
        Composite Tape or such national securities exchange on such date or quoted
        on
        the National Association of Securities Dealers Automated Quotation System
        on
        such date, then the immediately preceding date on which sales of the Shares
        have
        been so reported or quoted shall be used.

      7.           Exercisability
        Upon Termination of Service by Death or Disability.  Upon a
        Termination of Service (as defined below) by reason of death or Disability
        (as
        defined below), the Option may be exercised within 180 days following the
        date
        of death or Termination of Service due to Disability (subject to any earlier
        termination of the Option as provided herein), by the Option Holder in the
        case
        of Disability, or in the case of death, by the Option Holder's estate or
        by a
        person who acquired the right to exercise the Option by bequest or inheritance,
        but in any case only to the extent the Option Holder was entitled to exercise
        the Option on the date of his or her Termination of Service by death or
        Disability.  To the extent that the Option Holder was not entitled to
        exercise the Option at the date of his or her Termination of Service by death
        or
        Disability, or if he or she does not exercise the Option (which he or she
        was
        entitled to exercise) within the time specified herein, the Option shall
        terminate.  Notwithstanding anything to the contrary herein, the
        Committee may at any time and from time to time prior to the termination
        of the
        Option, with the consent of the Option Holder, extend the period of time
        during
        which the Option Holder may exercise his or her Option following the date
        of
        Termination of Service due to death or Disability; provided,
however, that the maximum period of time during which the Option
        shall be
        exercisable following the date of Termination of Service due to death or
        Disability shall not exceed the original term of the Option and that
        notwithstanding any extension of time during which the Option may be exercised,
        the Option, unless otherwise amended by the Committee, shall only be exercisable
        to the extent the Option Holder was entitled to exercise the Option on the
        date
        of Termination of Service due to death or Disability.  Any such
        extension shall be designed to conform to the requirements of Section 409A
        of the Code so as to avoid the imposition of the additional income
        tax.  For purposes of this Agreement, "Termination of Service"
        shall mean a Option Holder's termination of service with the Company, its
        Subsidiaries (as defined in Section 424(f) of the Code or any successor section
        thereto) and Affiliates (as defined below). A Termination of Service of an
        employee of the Company or any Subsidiary shall not be deemed to have occurred
        in the case of sick leave, military leave or any other leave of absence,
        in each
        case approved by the Committee or in the case of transfers between locations
        of
        the Company or its Subsidiaries. In the case of "specified employees" (as
        described in Section 409A of the Code), distributions may not be made
        before the date which is six months after the date of termination of service
        (or, if earlier, the date of death of the Option Holder). A specified employee
        is a "key employee" as defined in Section 416(i) of the Code without regard
        to
        Paragraph (5), but only if the Company has any stock which is publicly traded
        on
        an established securities market or otherwise.  For purposes of this
        Agreement, "Disability" shall mean inability to engage in any substantial
        gainful activity by reason of a medically determinable physical or mental
        impairment which can be expected to result in death, or can be expected to
        last
        for a continuous period of not less than 12 months. The determination
        whether the Option Holder has suffered a Disability shall be made by the
        Committee based upon such evidence as it deems necessary and appropriate.
        An
        Option Holder shall not be considered disabled unless he or she furnishes
        such
        medical or other evidence of the existence of the Disability as the Committee,
        in its sole discretion, may require. For purposes of this Agreement, "Affiliate"
        shall mean any entity (i) 20% or more the voting equity of which is owned
        or
        controlled directly or indirectly by the Company, or (ii) that had been a
        business, division or subsidiary of the Company, the equity of which has
        been
        distributed to the Company's stockholders, even if the Company thereafter
        owns
        less than 20% of the voting equity.

      8.           Effect
        of Other Termination of Service.  Upon a Termination of Service
        for any reason (other than death or Disability), the unexercised Option may
        thereafter be exercised during the period ending 90 days after the date of
        such
        Termination of Service, but only to the extent to which the Option was vested
        and exercisable at the time of such Termination of
        Service.  Notwithstanding the foregoing, the Committee may, in its
        sole discretion, either by prior written agreement with the Option Holder
        or
        upon the occurrence of a Termination of Service, accelerate the vesting of
        unvested Options held by the Option Holder if the Option Holder's Termination
        of
        Service is without "cause" (as such term is defined by the Committee in its
        sole
        discretion) by the Company.

      9.           Effect
        of Change of Control.  Subject to the terms of this Section
        9 and the other terms of this Agreement, if, upon or within 24 months
        following the occurrence of a Change of Control (as defined below), a
        Termination of Service of the

       

      
        
          
          

        

        
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            2
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      Option
        Holder
        occurs in the Option Holder's capacity as a director of the Company, then
        the
        unvested Option Shares subject to the Option shall become immediately vested
        in
        full on the date of such Termination of Service.

       

      For
        purposes of this Agreement,
        "Change of Control" shall mean the occurrence of any of the following
        events:

       

      (i) any
        Person (as used for purposes of Section 13(d)(3) or 14(d)(2) of the Securities
        Exchange Act of 1934, as amended (or any successor rule thereto)) becomes
        the
        Beneficial Owner (as defined in Rule 13d-3 under the Securities Exchange
        Act of
        1934, as amended (or any successor rule thereto)), directly or indirectly,
        of
        more than forty percent (40%) of the combined voting power of the
        then-outstanding voting securities of the Company entitled to vote generally
        in
        the election of directors (the "Outstanding Company Voting Securities");
provided, however, that the following acquisitions shall not
        constitute a Change of Control: (A) any acquisition by any employee benefit
        plan (or related trust) sponsored or maintained by the Company or any
        corporation controlled by the Company, or (B) any acquisition by an entity
        pursuant to a reorganization, merger or consolidation, unless such
        reorganization, merger or consolidation constitutes a Change of Control under
        clause (ii) of this Section 9;

       

      (ii) the
        consummation of a reorganization, merger or consolidation, unless following
        such
        reorganization, merger or consolidation sixty percent (60%) or more of the
        combined voting power of the then-outstanding voting securities of the entity
        resulting from such reorganization, merger or consolidation entitled to vote
        generally in the election of directors is then Beneficially Owned, directly
        or
        indirectly, by all or substantially all of the individuals and entities who
        were
        the Beneficial Owners, respectively, of the Outstanding Company Voting
        Securities immediately prior to such reorganization, merger or
        consolidation;

       

      (iii) the
        (i) approval by the stockholders of the Company of a complete liquidation
        or dissolution of the Company or (ii) sale or other disposition (in one
        transaction or a series of related transactions) of all or substantially
        all of
        the assets of the Company and its Subsidiaries, unless the successor entity
        existing immediately after such sale or disposition is then Beneficially
        Owned,
        directly or indirectly, by all or substantially all of the individuals and
        entities who were the Beneficial Owners, respectively, of the Outstanding
        Company Voting Securities immediately prior to such sale or
        disposition;

       

      (iv) during
        any period of twenty-four months, individuals who at the beginning of such
        period constitute the Board of Directors of the Company (the "Board"),
        and any new director (other than (A) a director nominated by a Person who
        has entered into an agreement with the Company to effect a transaction described
        in clauses (i), (ii) or (iii) of this Sections 9,
        (B) a director whose initial assumption of office occurs as a result of
        either an actual or threatened election contest subject to Rule 14a-11 of
        Regulation 14A promulgated under the Securities Exchange Act of 1934, as
        amended (or any successor rule thereto), or other actual or threatened
        solicitation of proxies or consents by or on behalf of a Person other than
        the
        Board or (C) a director designated by any Person who is the Beneficial
        Owner, directly or indirectly, of securities of the Company representing
        10% or
        more of the Outstanding Company Voting Securities) whose election by the
        Board
        or nomination for election by the Company¡ ̄s stockholders was approved in
        advance by a vote of at least two-thirds (2/3) of the directors then still
        in
        office who either were directors at the beginning of the period or whose
        election or nomination for election was previously so approved, cease for
        any
        reason to constitute at least a majority thereof; or

       

      (v) the
        Board adopts a resolution to the effect that, for purposes hereof, a Change
        of
        Control has occurred.

       

      
                    Notwithstanding
          the
          foregoing, if the award under this Agreement consists of deferred compensation
          subject to Section 409A of the Code, the definition of Change of Control
          shall be deemed modified to the extent necessary to comply with
          Section 409A of the Code.

      

       

      10.     Adjustment
        Upon Certain Events.

       

      (i)
        The
        number and type of Shares which have been authorized for issuance under this
        Agreement as well as the exercise or purchase price per Share, as applicable,
        covered by this Agreement, shall be proportionately adjusted for any increase
        or
        decrease in the number of issued Shares resulting from a stock split, reverse
        stock split or combination or the payment of a stock dividend (but only on
        the
        Company¡ ̄s common stock) or reclassification of the Company¡ ̄s common stock or
        any other increase or decrease in the number of issued Shares effected without
        receipt of consideration by the Company. Any such adjustment shall be determined
        in good faith by the Committee to be appropriate in order to prevent dilution
        or
        enlargement of the benefits or potential benefits intended to be made available
        under this Agreement, and the Committee¡ ̄s determination in that respect shall
        be final, binding and conclusive. Except as expressly provided herein, no
        issue
        by the Company of shares of stock of any class, or securities convertible
        into
        shares of stock of any class, shall affect, and no adjustment by reason thereof
        shall be made with respect to, the number or price of Shares subject to this
        Agreement.

       

      
        
          
          

        

        
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      (ii)
        In
        the event of a Change of Control (other than pursuant to Section 11 or
12), if the Committee makes no provision for the assumption
        of this
        Agreement by the successor corporation, then the Committee shall determine
        whether (i) none, all or a portion of the Option shall vest, (ii) the
        Option shall terminate as of a date fixed by the Committee which is at least
        30 days after the notice thereof to the Option Holder and shall give each
        Option Holder the right to exercise his or her Option as to all or any part
        of
        the Shares, including Shares as to which the Option would not otherwise be
        exercisable, or (iii) cause the Option, as of the effective date of any
        such event, to be cancelled in consideration of a cash payment or grant of
        an
        alternative option or award (whether by the Company or any entity that is
        a
        party to the transaction), or a combination thereof, to the holder of the
        cancelled Option, providedthat such payment and/or grant are
        substantially equivalent in value to the fair market value of the cancelled
        Option as determined by the Committee.

       

      11.          
        Liquidation.  In the event of the dissolution or liquidation of
        the Company, other than pursuant to Section 12 in connection with a
        Reorganization (as defined below), the Option shall terminate as of a date
        to be
        fixed by the Committee, provided that not less than 30 days written notice
        of
        the date so fixed shall be given to the Option Holder and the Option Holder
        shall have the right during such period to exercise the Option as to all
        or any
        part of the Option Shares covered hereby as to which the Option would then
        be
        exercisable.

          12.          
        Reorganization.  In the event of a Reorganization in which the
        Company is not the surviving or acquiring company, or in which the Company
        is or
        becomes a wholly-owned subsidiary of another company or entity after the
        effective date of the Reorganization, then (i) if there is no plan or
        agreement respecting the Reorganization ("Reorganization Agreement") or
        if the Reorganization Agreement does not specifically provide for the change,
        conversion or exchange of the Option Shares under outstanding unexercised
        Options for securities of another corporation, then the Option shall terminate
        as of a date to be fixed by the Committee, provided that not less than
        30 days written notice of the date so fixed shall be given to the Option
        Holder and the Option Holder shall have the right during such period to exercise
        the Option as to all or any part of the Option Shares covered hereby; or
        (ii) if there is a Reorganization Agreement and if the Reorganization
        Agreement specifically provides for the change, conversion or exchange of
        the
        Option Shares under outstanding or unexercised options for securities, cash
        or
        property of another corporation or entity, then the Committee shall adjust
        the
        Option Shares under such outstanding unexercised Options (and shall adjust
        the
        Option Shares which are then available to be optioned, if the Reorganization
        Agreement makes specific provisions therefor) in a manner not inconsistent
        with
        the provisions of the Reorganization Agreement for the adjustment, change,
        conversion or exchange of such stock and such options.  The term
        "Reorganization" as used in this Section 12 shall mean any merger,
        consolidation, sale of all or substantially all of the assets of the Company,
        or
        sale, pursuant to an agreement with the Company, of securities of the Company
        pursuant to which the Company is or becomes a wholly-owned subsidiary of
        another
        company or entity after the effective date of the Reorganization

             
        13.           Lock Up
        Agreement.  The Option Holder agrees that upon request of the
        Company or the underwriters managing any underwritten offering of the Company's
        securities, the Option Holder shall agree in writing that for a period of
        time
        (not to exceed 180 days) from the effective date of any registration of
        securities of the Company, the Option Holder will not sell, make any short
        sale
        of, loan, grant any option for the purchase of, or otherwise dispose of any
        Option Shares issued pursuant to the exercise of the Option, without the
        prior
        written consent of the Company or such underwriters, as the case may
        be.

             
        14.          Transfer of
        Shares.  The Option, the Option Shares, or any interest in either,
        may be sold, assigned, pledged, hypothecated, encumbered, or transferred
        or
        disposed of in any other manner, in whole or in part, only in compliance
        with
        the terms, conditions and restrictions as set forth in the governing instruments
        of the Company, applicable United States federal and state securities laws
        and
        the terms and conditions this Agreement.  Except as set forth in this
Section 14, the Option shall not be transferable by the Option Holder
        otherwise than by will or by the laws of descent and distribution, and during
        the lifetime of the Option Holder the Option shall be exercisable only by
        the
        Option Holder.  If the Option is exercisable after the death of the
        Option Holder or a transferee pursuant to the following sentence, the Option
        may
        be exercised by the legatees, personal representatives or distributees of
        the
        Option Holder or such transferee. The Option Holder may irrevocable transfer
        the
        Option for no consideration to any child, stepchild, grandchild, parent,
        stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
        mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law
        or
        sister-in-law, including adoptive relationships, of the Option Holder, any
        trust
        in which these persons have more than 50% of the beneficial interest, any
        foundation in which these persons (or the Option Holder) control the management
        of assets, and any other entity in which these persons (or the Option Holder)
        own more than 50% of the voting interests ("Eligible Transferees"),
providedthat subsequent transfers of transferred Options shall
        be
        prohibited except those in accordance with the first sentence of this
        Section 14. The Committee may, in its discretion, amend the definition of
        Eligible Transferees to conform to the coverage rules of Form S-8 under the
        Securities Act of 1933 (or any comparable or successor registration statement)
        from time to time in effect. Following transfer, any such Options shall continue
        to be subject to the same terms and conditions as were applicable immediately
        prior to transfer. The events of Termination of Service of Section 8
        hereof shall continue to be applied with respect to the original Option Holder,
        following which the options shall be exercisable by the transferee only to
        the
        extent, and

      
        
          
          

        

        
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      for
        the
        periods specified, in Section 8.

      15.           
        Expenses of Issuance of Option Shares.  The issuance of stock
        certificates upon the exercise of the Option in whole or in part, shall be
        without charge to the Option Holder.  The Company shall pay, and
        indemnify the Option Holder from and against any issuance, stamp or documentary
        taxes (other than transfer taxes) or charges imposed by any governmental
        body,
        agency or official (other than income taxes) by reason of the exercise of
        the
        Option in whole or in part or the resulting issuance of the Option
        Shares.

      16.           
        Withholding.  No later than the date of transfer of the Shares
        pursuant to the exercise of the Option granted hereunder (and in any event
        no
        later than three days after Option exercise), the Option Holder shall pay
        to the
        Company or make arrangements satisfactory to the Committee regarding payment
        of
        any federal, state or local taxes of any kind required by law to be withheld
        upon the exercise of the Option and the Company shall, to the extent permitted
        or required by law, have the right to deduct from any payment of any kind
        otherwise due to the Option Holder, federal, state and local taxes of any
        kind
        required by law to be withheld upon the exercise of the Option. With the
        approval of the Committee, the Option Holder may elect to pay a portion or
        all
        of such withholding taxes by (i) delivery of Shares or (ii) having
        Shares withheld by the Company from any Shares that would have otherwise
        been
        received by the Option Holder. The number of Shares so delivered or withheld
        shall have an aggregate Fair Market Value on the date of the exercise sufficient
        to satisfy the applicable withholding taxes. In addition, with the approval
        of
        the Committee, the Option Holder may satisfy any additional tax that the
        Option
        Holder elects to have the Company withhold by delivering to the Company or
        its
        designated representative Shares already owned by the Option Holder or, in
        the
        case of Shares acquired through an employee benefit plan sponsored by the
        Company or its Subsidiaries, Shares held by the Option Holder for more than
        six
        months.

      17.           
        No Right to Continued Employment of Service.  This Agreement
        shall not impose any obligation on the Company, its Subsidiaries or its
        affiliates to continue the service of the Option Holder or lessen the
        Company¡ ̄s, Subsidiary¡ ̄s or affiliate¡ ̄s right to terminate the service of the
        Option Holder.

      18.           
        Not Compensation for Benefit Plans.  This Agreement shall be
        deemed salary or compensation for the purpose of computing benefits under
        any
        benefit plan or other arrangement of the Company for the benefit of its
        employees or directors unless the Company shall determine
        otherwise.

      19.           
        No Rights to Awards; No Stockholder Rights.  No Option Holder
        shall have any claim to be granted any Option, and there is no obligation
        for
        uniformity of treatment of Option Holders. No Award shall confer on the Option
        Holder any rights to dividends or other rights of a stockholder with respect
        to
        Shares subject to this Agreement unless and until Shares are duly issued
        or
        transferred to the Option Holder in accordance with the terms of this Agreement
        and, if applicable, the satisfaction of any other conditions imposed by the
        Committee.

      20.           
        No Fractional Shares.  No fractional Shares shall be issued or
        delivered pursuant to this Agreement. The Committee shall determine, in its
        discretion, whether cash, other options, stock appreciation rights or other
        stock based awards, scrip certificates (which shall be in a form and have
        such
        terms and conditions as the Committee in its discretion shall prescribe)
        or
        other property shall be issued or paid in lieu of such fractional Shares
        or
        whether such fractional Shares or any rights thereto shall be forfeited or
        otherwise eliminated.

      21.           
        Severability.  The
        provisions of this
        Agreement shall be deemed severable, and the invalidity or unenforceability
        of
        any one or more of the provisions hereof shall not affect the validity and
        enforceability of the other provisions hereof.  The Option Holder
        agrees that the breach or alleged breach by the Company of (a) any covenant
        contained in another agreement (if any) between the Company and the Option
        Holder or (b) any obligation owed to the Option Holder by the Company, shall
        not
        affect the validity or enforceability of the covenants and agreements of
        the
        Option Holder set forth herein.

      22.           
        References.  References herein to rights and obligations of the
        Option Holder shall apply, where appropriate, to the Option Holder's legal
        representative or estate without regard to whether specific reference to
        such
        legal representative or estate is contained in a particular provision of
        this
        Option.

             23.    
        Headings.  The headings and other captions in this
        Agreement are for convenience of reference only and shall not be used in
        interpreting, construing or enforcing any of the provisions of this
        Agreement.

            
        24.            
Notices.  Any notice required or permitted to be given under
        this Agreement shall be in writing and shall be deemed to have been given
        when
        delivered personally or by courier, or sent by certified or registered mail,
        postage prepaid, return receipt requested, duly addressed to the party concerned
        at the address indicated below or to such changed address as such party may
        subsequently by similar process give notice of:

      If
        to the
        Company:

      Far
        East
        Energy Corporation

      363
        N Sam
        Houston Parkway East

      Suite
        380

      Houston,
        Texas 77060

      Attn.:
        Secretary

      If
        to the
        Option Holder:

      William
        A. Anderson

      c/o
        363 N
        Sam Houston Parkway East

      Suite
        380

      Houston,
        Texas 77060

      

      25.           Governing
        Law.  This Agreement shall be governed by and construed in
        accordance with the laws of the State of Texas applicable to contracts made
        and
        to be performed in the State of Texas without regard to conflict of laws
        principles.

      26.           Entire
        Agreement.  This Agreement constitutes the entire agreement among
        the parties relating to the subject matter hereof, and any previous agreement
        or
        understanding among the parties with respect thereto is superseded by this
        Agreement.

      27.           Modifications.  No
        change or modification, other than adjustment of the exercise or purchase
        price
        or the number of shares of common stock purchasable pursuant to this Agreement,
        of this Agreement shall be valid unless the same is in writing and signed
        by the
        parties hereto; provided, however that the Option Holder hereby covenants
        and
        agrees to execute any amendment of this Agreement which shall be required
        or
        desirable (in the opinion of the Company or its counsel) in order to comply
        with
        any rule or regulation promulgated or proposed under the Code.

      28.           Counterparts.  This
        Agreement may be executed in two counterparts, each of which shall constitute
        one and the same instrument.

             
        29.          Conflict.  To
        the extent the provisions of this Agreement conflicts with the terms and
        conditions of any written agreement between the Company and the Option Holder,
        the terms and conditions of such agreement shall control.

      

      IN
        WITNESS WHEREOF, the undersigned
        have executed this Agreement effective as of the Date of Grant.

      

       

      FAR
        EAST
        ENERGY CORPORATION

       

      

        
          	
                  By:

                	
                  /s/
                    Michael R. McElwrath

                
	
                  Name:

                	
                  Michael
                    R. McElwrath

                
	
                  Title:

                	
                  Chief
                    Executive Officer

                
	 	 
	 	 
	 	 
	
                  /s/
                    William A. Anderson

                
	
                  William
                    A. Anderson

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