Document:

EXHIBIT 10.2
                              CONSULTING AGREEMENT

         THIS CONSULTING AGREEMENT (the "Agreement") is made as of the 10th day
of October, 2000, by and between Anna Trinh, a citizen and resident of Canada,
of 8260 Ryan Road, Richmond, B.C. V7A 2E5 ("Consultant") and Cyber Public
Relations, Inc., a Florida corporation with its offices located in Richmond,
B.C. (the "Company").

         WHEREAS, Consultant is a Legal Assistant with experience in general
corporate securities matters; and

         WHEREAS, the Company desires to retain Consultant to advise and assist
the Company in its development on the terms and conditions set forth below.

         NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and
Consultant agree as follows:

1.       ENGAGEMENT

         The Company hereby retains Consultant, effective as of the date hereof
         (the "Effective Date") and continuing until termination, as provided
         herein, to assist the Company in general management and legal assistant
         services, providing assistance in preparing the Company's initial
         registration statement for the Securities and Exchange Commission (the
         "Services"). The Services are to be provided on a "best efforts" basis
         directly and through Consultant's agents or others employed or retained
         and under the direction of Consultant, if any ("Consultant's
         Personnel"); PROVIDED, HOWEVER, that the Services shall expressly
         exclude any financial or accounting advice, accounting services or
         other services which require licenses or certification which Consultant
         may not have.

2.       TERM

         This Agreement shall have an initial term of six (6) months (the
         "Primary Term"), commencing with the Effective Date. At the conclusion
         of the Primary Term this Agreement may be extended for the same term
         (the "Extension Period") if the parties agree in writing to do so.

3.       TIME AND EFFORT OF CONSULTANT

         Consultant shall allocate time and Consultant's Personnel as it deems
         necessary to provide the Services. The particular amount of time may
         vary from day to day or week to week. Except as otherwise agreed,
         Consultant's monthly statement identifying, in general, tasks performed
         for the Company shall be conclusive evidence that the Services have
         been performed. Additionally, in the absence of willful misfeasance,
         bad faith, negligence or reckless disregard for the obligations or
         duties hereunder by Consultant, neither Consultant nor Consultant's
         Personnel shall be liable to the Company or any of its shareholders for
         any act or omission in the course of or connected with rendering the
         Services, including but not limited to losses that may be sustained in
         any corporate act in any subsequent Business Opportunity (as defined
         herein) undertaken by the Company as a result of advice provided by
         Consultant or Consultant's Personnel.

                                       58
<PAGE>

4.       COMPENSATION

         The Company agrees to pay Consultant a fee for the Services
         ("Consulting Fee") by way of the delivery by the company of Fifty
         Thousand (50,000) shares of the Company's common stock as a fee, issued
         under Rule 701 with any required restriction, with a deemed value of
         $0.10 per share. These shares shall be delivered within seven (7) days
         of the execution hereof. All shares transferred are considered fully
         earned and non-assessable as of the date hereof.

5.       REGISTRATION OF SHARES

         Company agrees that any shares issued to satisfy a Transaction Fee may
         be registered by the Company with the Securities and Exchange
         Commission under any subsequent applicable registration statement filed
         by the Company at the Company's discretion. Such issuance or
         reservation of shares shall be in reliance on representations and
         warranties of Consultant set forth herein.

6.       COSTS AND EXPENSES

         All third party and out-of-pocket expenses incurred by Consultant in
         the performance of the Services or for the settlement of debts shall be
         paid by the Company, or Consultant shall be reimbursed if paid by
         Consultant on behalf of the Company, within ten (10) days of receipt of
         written notice by Consultant, provided that the Company must approve in
         advance all such expenses in excess of $500 per month.

7.       PLACE OF SERVICES

         The Services provided by Consultant or Consultant's Personnel hereunder
         will be performed at Consultant's offices except as otherwise mutually
         agreed by Consultant and the Company.

8.       INDEPENDENT CONTRACTOR

         Consultant and Consultant's Personnel will act as an independent
         contractor in the performance of its duties under this Agreement.
         Accordingly, Consultant will be responsible for payment of all federal,
         state, and local taxes, if any, on compensation paid under this
         Agreement, including income and social security taxes, unemployment
         insurance, and any other taxes due relative to Consultant's Personnel,
         and any and all business license fees as may be required. This
         Agreement neither expressly NOR impliedly creates a relationship of
         principal and agent, or employee and employer, between Consultant's
         Personnel and the Company. Neither Consultant nor Consultant's
         Personnel are authorized to enter into any agreements on behalf of the
         Company. The Company expressly retains the right to approve, in its
         sole discretion, each Asset Opportunity or Business Opportunity
         introduced by Consultant, and to make all final decisions with respect
         to effecting a transaction on any Business Opportunity.

                                       59
<PAGE>

9.       REJECTED ASSET OPPORTUNITY OR BUSINESS OPPORTUNITY

         If, during the Primary Term of this Agreement or any Extension Period,
         the Company elects not to proceed to acquire, participate or invest in
         any Business Opportunity identified and/or selected by Consultant,
         notwithstanding the time and expense the Company may have incurred
         reviewing such transaction, such Business Opportunity shall revert back
         to and become proprietary to Consultant, and Consultant shall be
         entitled to acquire or broker the sale or investment in such rejected
         Business Opportunity for its own account, or submit such assets or
         Business Opportunity elsewhere. In such event, Consultant shall be
         entitled to any and all profits or fees resulting from Consultant's
         purchase, referral or placement of any such rejected Business
         Opportunity, or the Company's subsequent purchase or financing with
         such Business Opportunity in circumvention of Consultant

10.      NO AGENCY EXPRESS OR IMPLIED

         This Agreement neither expressly nor impliedly creates a relationship
         of principal and agent between the Company and Consultant, or employee
         and employer as between Consultant's Personnel and the Company.

11.      TERMINATION

         The Company and Consultant may terminate this Agreement prior to the
         expiration of the Primary Term upon thirty (30) days written notice
         with mutual written consent. Failing to have mutual consent, without
         prejudice to any other remedy to which the terminating party may be
         entitled, if any, either party may terminate this Agreement with thirty
         (30) days written notice under the following conditions:

         (A)      BY THE COMPANY.
                  --------------

                  (i)      If during the Primary Term of this Agreement or any
                           Extension Period, Consultant is unable to provide the
                           Services as set forth herein for thirty (30)
                           consecutive business days because of illness,
                           accident, or other incapacity of Consultant's
                           Personnel; or,

                  (ii)     If Consultant willfully breaches or neglects the
                           duties required to be performed hereunder; or,

                  (iii)    At Company's option without cause upon 30 days
                           written notice to Consultant; or

         (B)      BY CONSULTANT.
                  --------------

                  (i)      If the Company breaches this Agreement or fails to
                           make any payments or provide information required
                           hereunder; or,

                  (ii)     If the Company ceases business or, other than in an
                           Initial Merger, sells a controlling interest to a
                           third party, or agrees to a consolidation or merger
                           of itself with or into another corporation, or enters
                           into such a transaction outside of the scope of this
                           Agreement, or sells substantially all of its assets
                           to another corporation, entity or individual outside
                           of the scope of this Agreement; or,

                                       60
<PAGE>

                  (iii)    If the Company subsequent to the execution hereof has
                           a receiver appointed for its business or assets, or
                           otherwise becomes insolvent or unable to timely
                           satisfy its obligations in the ordinary course of,
                           including but not limited to the obligation to pay
                           the Initial Fee, the Transaction fee, or the
                           Consulting Fee; or,

                  (iv)     If the Company subsequent to the execution hereof
                           institutes, makes a general assignment for the
                           benefit of creditors, has instituted against it any
                           bankruptcy proceeding for reorganization for
                           rearrangement of its financial affairs, files a
                           petition in a court of bankruptcy, or is adjudicated
                           a bankrupt; or,

                  (v)      If any of the disclosures made herein or subsequent
                           hereto by the Company to Consultant are determined to
                           be materially false or misleading.

         In the event Consultant elects to terminate without cause or this
         Agreement is terminated prior to the expiration of the Primary Term or
         any Extension Period by mutual written agreement, or by the Company for
         the reasons set forth in A(i) and (ii) above, the Company shall only be
         responsible to pay Consultant for unreimbursed expenses, Consulting Fee
         and Transaction Fee accrued up to and including the effective date of
         termination. If this Agreement is terminated by the Company for any
         other reason, or by Consultant for reasons set forth in B(i) through
         (v) above, Consultant shall be entitled to any outstanding unpaid
         portion of reimbursable expenses, Transaction Fee, if any, and for the
         remainder of the unexpired portion of the applicable term (Primary Term
         or Extension Period) of the Agreement.

12.      INDEMNIFICATION

         Subject to the provisions herein, the Company and Consultant agree to
         indemnify, defend and hold each other harmless from and against all
         demands, claims, actions, losses, damages, liabilities, costs and
         expenses, including without limitation, interest, penalties and
         attorneys' fees and expenses asserted against or imposed or incurred by
         either party by reason of or resulting from any action or a breach of
         any representation, warranty, covenant, condition, or agreement of the
         other party to this Agreement.

13.      REMEDIES

         Consultant and the Company acknowledge that in the event of a breach of
         this Agreement by either party, money damages would be inadequate and
         the non-breaching party would have no adequate remedy at law.
         Accordingly, in the event of any controversy concerning the rights or
         obligations under this Agreement, such rights or obligations shall be
         enforceable in a court of equity by a decree of specific performance.
         Such remedy, however, shall be cumulative and nonexclusive and shall be
         in addition to any other remedy to which the parties may be entitled.

14.      MISCELLANEOUS

         (A)      SUBSEQUENT EVENTS. Consultant and the Company each agree to
                  notify the other party if, subsequent to the date of this
                  Agreement, either party incurs obligations which could
                  compromise its efforts and obligations under this Agreement.

         (B)      AMENDMENT. This Agreement may be amended or modified at any
                  time and in any manner only by an instrument in writing
                  executed by the parties hereto.

                                       61
<PAGE>

         (C)      FURTHER ACTIONS AND ASSURANCES. At any time and from time to
                  time, each party agrees, at its or their expense, to take
                  actions and to execute and deliver documents as may be
                  reasonably necessary to effectuate the purposes of this
                  Agreement.

         (D)      WAIVER. Any failure of any party to this Agreement to comply
                  with any of its obligations, agreements, or conditions
                  hereunder may be waived in writing by the party to whom such
                  compliance is owed. The failure of any party to this Agreement
                  to enforce at any time any of the provisions of this Agreement
                  shall in no way be construed to be a waiver of any such
                  provision or a waiver of the right of such party thereafter to
                  enforce each and every such provision. No waiver of any breach
                  of or noncompliance with this Agreement shall be held to be a
                  waiver of any other or subsequent breach or noncompliance.

         (E)      ASSIGNMENT. Neither this Agreement nor any right created by it
                  shall be assignable by either party without the prior written
                  consent of the other.

         (F)      NOTICES. Any notice or other communication required or
                  permitted by this Agreement must be in writing and shall be
                  deemed to be properly given when delivered in person to an
                  officer of the other party, when deposited in the United
                  States mails for transmittal by certified or registered mail,
                  postage prepaid, or when deposited with a public telegraph
                  company for transmittal, or when sent by facsimile
                  transmission charges prepared, provided that the communication
                  is addressed:

                  (i)  In the case of the Company:  Cyber Public Relations, Inc.
                                                    8260 Ryan Road
                                                    Richmond, B.C.  V7A 2E5
                                                    Telephone: (604) 277-2816

                                                    Att:  Maria Trinh, President

                  (ii) In the case of Consultant:   Anna Trinh
                                                    309-837 West Hastings Street
                                                    Vancouver, B.C.  V6C 3N6
                                                    Telephone: (604) 605-0507

                  or to such other person or address designated in writing by
                  the Company or Consultant to receive notice.

         (G)      HEADINGS. The section and subsection headings in this
                  Agreement are inserted for convenience only and shall not
                  affect in any way the meaning or interpretation of this
                  Agreement.

         (H)      GOVERNING LAW. This Agreement was negotiated and is being
                  contracted for in Vancouver, and shall be governed by the laws
                  of the Province of British Columbia, and Canada,
                  notwithstanding any conflict-of-law provision to the contrary.

                                       62
<PAGE>

         (I)      BINDING EFFECT. This Agreement shall be binding upon the
                  parties hereto and inure to the benefit of the parties, their
                  respective heirs, administrators, executors, successors, and
                  assigns.

         (J)      ENTIRE AGREEMENT. This Agreement contains the entire agreement
                  between the parties hereto and supersedes any and all prior
                  agreements, arrangements, or understandings between the
                  parties relating to the subject matter of this Agreement. No
                  oral understandings, statements, promises, or inducements
                  contrary to the terms of this Agreement exist. No
                  representations, warranties, covenants, or conditions, express
                  or implied, other than as set forth herein, have been made by
                  any party.

         (K)      SEVERABILITY. If any part of this Agreement is deemed to be
                  unenforceable the balance of the Agreement shall remain in
                  full force and effect.

         (L)      COUNTERPARTS. A facsimile, telecopy, or other reproduction of
                  this Agreement may be executed simultaneously in two or more
                  counterparts, each of which shall be deemed an original, but
                  all of which together shall constitute one and the same
                  instrument, by one or more parties hereto and such executed
                  copy may be delivered by facsimile or similar instantaneous
                  electronic transmission device pursuant to which the signature
                  of or on behalf of such party can be seen. In this event, such
                  execution and delivery shall be considered valid, binding and
                  effective for all purposes. At the request of any party
                  hereto, all parties agree to execute an original of this
                  Agreement as well as any facsimile, telecopy or other
                  reproduction hereof.

         (M)      TIME IS OF THE ESSENCE. Time is of the essence of this
                  Agreement and of each and every provision hereof.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
         above date.

         The "Company"                               "Consultant"
         Cyber Public Relations, Inc.
         A Florida Corporation                       Anna Trinh

         By:  /S/ MARIA TRINH                        /S/ ANNA TRINH
              --------------------------------       ---------------------------
         Name: Maria Trinh                           (Signed)
         Title: President

                                       63Exhibit 10.1 Subscription Agreement

SUBSCRIPTION
AGREEMENT

	 	
THIS AGREEMENT PERTAINS TO SECURITIES THAT HAVE NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR UNDER ANY U.S.
STATE SECURITIES LAW. THE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED UNLESS THEY ARE REGISTERED UNDER THE ACT AND ALL APPLICABLE U.S.
STATE SECURITIES LAWS OR ARE EXEMPT THEREFROM.

Fan Energy Inc.

1801 Broadway, Suite 720

Denver, Colorado 80202

Gentlemen:

        This
letter confirms the subscription of the undersigned (“Subscriber”),
together with each of the other persons identified on Exhibit A attached
hereto and incorporated herein by this reference (“Other
Subscribers”), to purchase, collectively, from Fan Energy Inc.
(“Company”), 3,250,000 shares of the Company’s $0.001 par value
common stock at a purchase price of $0.20 per share for a total purchase price
by Subscriber and the Other Subscribers of $650,000. The number of shares to be
purchased and total purchase price to be paid by Subscriber and each of the
Other Subscribers is set forth on Exhibit A. 

        The
Subscriber hereby subscribes to purchase the number of shares of common stock
(the “Shares”) of the Company set forth for Subscriber on Exhibit
A, and hereby agrees to pay the full subscription price of $0.20 per share
as set forth in this Subscription Agreement. The sale of Shares under this
Subscription Agreement is made subject to the terms, acknowledgments,
representations and conditions made by the Subscriber or the Company set forth
below. 

        1.
Purchase Price and Payment of Purchase Price.

        1.1. Purchase Price. As full
consideration for the sale of the Shares to Subscriber, Subscriber shall pay to
the Company to amount set forth for Subscriber on Exhibit A to purchase the
number of Shares referenced. Such amounts shall sometimes be referred
to herein as the "Purchase Price."

        1.2.
Payment of Purchase Price.  The Purchase Price shall be paid as follows:

	        	
        (a) Subscriber's check in the
amount of $50,000.00, receipt of which is acknowledged by the Company; and

	        	
        (b) Subscriber’s promissory
note (a “Subscriber’s Note”) in the amount of $600,000, due and
payable one-third on February 19, 2001, one-third on April 3, 2001 and the
balance on May 16, 2001. The Subscriber’s Note shall be in the form of
Exhibit B to this Subscription Agreement.

        2.
Investment Representations. Subscriber acknowledges, agrees and represents
to the Company, its Officers and Directors, as follows:

        2.1.
Other Information Furnished. Subscriber acknowledges that he or she has had
access to all available material and relevant information concerning the
Company, its management, its existing business and financial information. Such
information includes:

	        	
        (a) The Company's most recent
Annual Report on Form 10-KSB for the fiscal year ended December 31,
1999;

	        	
        (b) The Prospectus of the
Company dated June 20, 2000; and

	        	
        (c) The Company's Form 10-QSB
for the quarter ended September 30, 2000.

In addition, Subscriber
acknowledges that he has full information and acknowledgment of a planned
transaction pursuant to which the Company shall acquire approximately $3.5
million of assets which are intended to be used by the Company following the
acquisition to manufacture, market and sell computer floppy disks. As a result
of the planned transaction, of which this Subscription Agreement is a part, it
is intended that control of the Company will be changed, the business of the
Company will be modified substantially and the future prospects of the business
will depend entirely upon any business success which the Company has in the new
business. As a result of the above information, the Subscriber has received all
disclosure of the intended business and other details of Subscriber’s
investment such that Subscriber is able to make an informed investment decision
regarding the subscription to purchase the Shares. All data or information
requested by Subscriber from the Company or any of its officers concerning the
Company and John Shebanow, and concerning the planned acquisition by the
Company, has been furnished to Subscriber. Subscriber has had an opportunity to
ask questions of, and to receive answers to and obtain additional information
from, the representatives of the Company and others who will be its officers
following this investment concerning the past and planned future business and
financial affairs of the Company, to the extent that such information is
possessed or could be acquired without unreasonable effort or expense. 

        
2.2. Purchase for Investment. Subscriber acknowledges that he or she
is the sole party in interest in making this purchase; that the Shares being
acquired herein are being acquired for his or her own account (or if a
fiduciary, for the account of a single principal), for investment purposes and
not with a view to, or for the purpose of, resale or distribution and no other
person has a direct or indirect beneficial interest in the Shares being
purchased. 

        
2.3. Ability to Bear Risk. Subscriber is a person or entity that is
able to bear the economic risk of an investment in the securities of the
Company. Subscriber has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of the subscription
for Shares of the Company described in this Agreement and Subscriber does not
anticipate that Subscriber will need the funds being invested in the Company to
maintain Subscriber’s present standard of living for the foreseeable
future. In making this statement, the Subscriber has considered whether he or
she could afford to hold the securities subscribed for an indefinite period and
whether, at this time, he or she could afford a complete loss. The Shares being
purchased will not be transferable except in compliance with requirements set
out in this Subscription Agreement. 

        
2.4. Other Acknowledgments. Subscriber acknowledges, agrees and represents
to the Company, its officers and directors, as follows:

	 	

        (a)   Status of
Subscriber. Subscriber is either an Accredited Investor as defined in
Regulation D adopted by the United States Securities and Exchange Commission, as
set forth below [check each  applicable item] or a nonaccredited
investor, as set forth below [again, check each applicable item and 
complete missing information]:

	 	
An
Accredited Investor as defined in Regulation D adopted by the United States
Securities and Exchange Commission because one or more of the following applies
to Subscriber:

	        �

Initial if checked	        
(i) Together with his or her spouse has a net worth, inclusive of home,
furnishings and automobiles, of at least $1,000,000; or

	        �

Initial if checked	        
(ii) Subscriber has an annual income during the last two years, and anticipates
the same for the current year, of at least $200,000 (or $300,000 together with
spouse); or

	        �

Initial if checked	        
(iii) Subscriber is a trust with total assets in excess of $5,000,000, not
formed for the specific purpose of acquiring the Shares, whose purchase is
directed by a person who has such knowledge and experience in financial and
business matters that he is capable of evaluating the merits and risks of the
prospective investment; or

	        �

Initial if checked	        
(iv) Subscriber is a trustee for a trust that is revocable by the grantor at any
time (including and IRA) and the grantor qualifies under either (i) or (ii)
above; or

	  J.J.S.   �

Initial if checked	        
(v) Subscriber is an entity, all of the beneficial owners of which qualify as
Accredited Investors as defined herein [describe entity and name all beneficial
owners: ___________________________________________________________]

	  J.J.S.   �

Initial if checked	        
(vi) Subscriber is an entity with total assets in excess of $5,000,000 which was
not formed for the specific purposes of investing in the Shares and which is one
of the following types of entities: corporation, partnership, business trust or
tax exempt organization described in Section 501(c)(3) of the Code. [describe
entity]    Limited Liability Company    
        .

        
Nonaccredited Investor:

	 	        
If investor is not an Accredited Investor as described above you are not
qualified to purchase shares in the offering described in this Subscription
Agreement.

        
3. Restricted Securities. The Subscription to purchase Shares is made
without registration under the Securities Act of 1933, as amended (the
“Act”), pursuant to an exemption from the registration requirements of
the Act. Sale of the Shares is also intended to be exempt from registration or
qualification requirements under applicable state laws. The Subscriber
acknowledges the following restrictions applicable to the Shares being purchased
pursuant to this Subscription Agreement: 

        3.1.
Subscriber understands (i) that an investment in the Shares is illiquid and
there is not now and will probably never be a trading market in the Shares; (ii)
he or she cannot sell or otherwise transfer the Shares unless and until the
securities have been registered under the Act and any applicable state
securities laws or unless exemptions from such registration requirements are
available to the reasonable satisfaction of the Company; (iii) the following
restrictive legend will be placed on certificates evidencing the Shares: 

	 	
“The
securities represented by this certificate may not be offered for sale, sold, or
otherwise transferred except pursuant to an effective registration statement
under the Securities Act of 1933 (“the Act”), or pursuant to an
exemption from registration under the Act, the availability of which is to be
established to the satisfaction of the Company.”

(iv) that the Shares are
restricted securities as that term is defined under the Act and Subscriber will
not sell such securities without compliance with the terms of the Act and any
applicable state securities laws; and (v) that the Subscriber has no right to
require the Company to register the securities under federal or state securities
laws at any time or to join any future registration thereof. 

        3.2.
Subscriber acknowledges that no general solicitation or general advertising
(including communications published in a newspaper, newsletter, magazine or
other broadcast) has been received by Subscriber and that no public solicitation
or advertisement with respect to the offering or sale of the Shares has been
made to Subscriber. 

        3.3.
The Company will pay no commissions or similar remuneration directly or
indirectly to any person for soliciting or assisting in effecting this
subscription.

        
4. Confidential Information. Subscriber acknowledges that the
information and data received from the Company is confidential and intended to
be proprietary. The Company could sustain irreparable injury and its potential
competitors could gain an unwarranted advantage should such information become
available to others. Accordingly, Subscriber agrees that all information
furnished to Subscriber by the Company, and any other information provided to
the Subscriber marked Confidential, shall not be copied for any purpose, shall
be returned to the Company upon the Company’s written request therefor,
shall not be furnished to others without the prior written consent of the
Company, and shall be maintained in a confidential manner by the Subscriber.
Subscriber further agrees that any threatened or actual violation of his or her
agreements relating to such confidential information, or other materials, may be
enjoined in an appropriate legal proceeding instituted by the Company or may be
subject to a suit for damages by the Company. 

        
5.   Option to Purchase Additional Securities. Each of
Subscriber and the Other Subscribers shall have an option, exercisable
individually by the option holder at any time for 150 days from the date of this
subscription, to purchase an amount of common stock of the Company determined by
multiplying one-half of the amount of subscription from Exhibit A times
the option exercise price, which shall be the higher of (i) $0.20 per share, or
(ii) the average of the reported closing bid price for the Company’s common
stock for the 20 trading days ending the day before the option is exercised.
Upon exercise the total exercise price shall be paid in full. The option may not
be exercised at any time when any portion of Subscriber’s Subscription Note
remains unpaid. 

        
6. Subscription Irrevocable by Subscriber. The Company reserves the right to
reject, reduce or allot this subscription. However, this subscription is
irrevocable by the Subscriber.

SIGNATURE
PAGE

FAN ENERGY
INC.

SUBSCRIPTION
AGREEMENT

        This
subscription is subject to acceptance by FAN ENERGY INC. and is irrevocable by
Subscriber.

Dated this 5th day of January 2001.

APG Associates, LLC ("Subscriber")        
                Number of Shares: 3,250,000

3550 Barron Way, Suite 11B        
            
            
      Total Purchase Price$ 0.20 per share:

Reno, Nevada 89511

Telephone No.: (775) 826-8280

Signature:  /s/ John James Shebanow           

        John James Shebanow, Managing Member

Agreed to and accepted:

FAN ENERGY INC.

By  /s/
W. Grafham           

       Authorized Officer

Date Accepted: January 5, 2001.

EXHIBIT A

Name and Address of           Amount of                Dollar Amount of      Number of
   Subscriber               Subscription   Cash Paid   Subscription Notes      Shares
--------------------------------------------------------------------------------------

APG Associates, LLC            $  650,000    $ 50,000      $  600,000        3,250,000
3550 Barron Way, Suite 11B
Reno, Nevada 89511
                                ------------------------------------------------------
                                Total                                       $  650,000

EXHIBIT B

Promissory
Note

SECURED
INSTALLMENT PROMISSORY NOTE

        FOR
VALUE RECEIVED, the undersigned, hereafter the “Maker,” hereby
promises to pay to the order of Fan Energy Inc., a Nevada corporation
(“Payee”), the sum of the principal amount stated below
(“Principal Amount”), together with simple interest at a rate of 5.5%
per annum on the unpaid principal balance, payable in arrears, commencing with
the first of three monthly payments described below. The principal balance of
this Note shall be payable in three equal monthly installments described below.
All principal and all accrued interest hereon shall be due and payable on the
date of the final installment. 

        This
Note is given by Maker as partial consideration for the purchase by Maker of the
number of shares of $0.001 par value common stock of Payee described below (the
“Shares”). Maker agrees that Payee shall hold certificates
representing the Shares until such time as this Note and all accrued interest
has been paid in full and that if this Note is not paid when due or is otherwise
in default, Payee shall have the right, at its sole election, to cancel the
issuance of all or any portion of the Shares which have not been paid in full at
a purchase of $0.20 per share at the time of default or nonpayment. 

        This
Note is delivered pursuant to a Subscription Agreement pursuant to which Maker
agreed to purchase the Shares from the Payee, and this Note is subject to the
terms and conditions thereof. This Note and any accrued unpaid interest may be
prepaid in full by Maker without penalty at any time. 

        Maker,
any endorsers and other persons liable for the payment for this Note, expressly
grant to Payee the right to release or to agree not to sue any other person, or
to suspend the right to enforce this Note against any such person or to
otherwise discharge such person; and each Maker, endorser or other person liable
hereunder agrees that the exercise of such rights by the Payee will have no
effect upon the liability of any other person liable hereunder. Maker, any
endorser and any other person liable hereunder, waives delinquency in
collection, demand for payment, presentment for payment, protest, notice of
protest, notice of dishonor and all duty or obligation of Payee to effect,
protect, perfect, retain or enforce any security or payment of this Note or to
proceed against any collateral before otherwise enforcing this Note. Maker, any
endorser and any other person liable hereunder expressly agree that this Note
and any payment hereunder may be extended from time to time by Payee without in
any way affecting the liability of the Maker, any endorser or any other person
liable hereunder. Maker represents and warrants to Payee that this Note is
binding upon the undersigned Maker in accordance with its terms. This Note shall
be deemed to have been executed and delivered in Reno, Nevada, and its terms and
provisions shall be governed by the laws of the state of Nevada. The following
information is intended by the undersigned Maker to be a part of the terms of
this Note: 

Promissory Note
Page 2

     
   Principal Amount:        
              
              
   
            
        $ 600,000

        Date of Note:        
              
              
                
        
        January 5, 2001

        Number of Shares Purchased:        
             
      
    
        3,250,000

        Number of Shares Liened
Hereunder:           
         
  
     3,000,000

        Name and Address of Maker:        
              
          
        APG Associates, LLC
        
              
              
              
             
           
              
        3550 Barron Way, Suite 11B
        
              
              
              
                    
    
              
        Reno, Nevada 89511

        Amount of Each Monthly
Installment:       
            
       $ 200,000

        Due Date of First Installment:        
              
 
        
        February 19, 2001

        Due Date of Second Installment:     
         
        
             April 3, 2001

        Due Date of Final Installment:        
        
            
   
        May 16, 2001

        Signature of Maker:        
              
              
                
        /s/ John James Shebanow    

              
              
                 
              
              
                
        APG Associates, LLC
        
              
        
              
              
              
                
        John James Shebanow
        
              
                
              
              
              
        
        Managing Member

Approved and
Accepted:

FAN ENERGY INC.

By    
/s/ W. Grafham            

       Authorized Officer

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