EMPLOYMENT AGREEMENT

This Second Amendment to Employment Agreement (this " Amendment ") is entered this 31 ^st day of December, 2008 (the " Effective Date "), by and between Far East Energy (Bermuda), Ltd., a Bermuda company (the " Company ") and Phil Christian (the " Employee ").

WHEREAS, the Company and the Employee entered into that certain Employment Agreement dated effective March 12, 2008 (as amended, the " Existing Agreement ");

WHEREAS, the Company and the Employee desire to amend the Existing Agreement on the terms herein provided;

WHEREAS, Section 457A of the Internal Revenue Code of 1986, as amended (" Section 457A "), imposes certain limitations and restrictions on the time at which certain types of compensation may be payable;

WHEREAS, all documents that may provide for the payment of compensation that may be subject to Section 457A must be brought into compliance with the requirements of Section 457A on or before December 31, 2008, or the service provider to whom such compensation is payable will be subjected to certain adverse tax consequences; and

WHEREAS, the Company and the Employee have determined that it is advisable to amend the Existing Agreement in accordance with Section 457A to ensure that, to the extent subject to Section 457A, the Existing Agreement complies therewith and to avoid the imposition of any adverse tax consequences under Section 457A.

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

Section 1.01. Capitalized terms used in this Amendment that are not defined herein shall have the meanings ascribed thereto by the Existing Agreement.

Section 2.01.   Section 23.   A new Section 23 is hereby added to the Existing Agreement to read as follows in its entirety:

Notwithstanding anything to the contrary in this Agreement, the following provisions shall apply from and after January 1, 2009:

(a)           This Agreement and the benefits provided hereunder are intended to comply, to the extent applicable thereto, with Code Section 457A and the Treasury Regulations and other guidance promulgated or issued thereunder, and the provisions of this Agreement shall be interpreted and construed consistent with this intent.  If the Employee or the Company believes, at any time, that any such benefit or right does not so comply with Code Section 457A, it shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms of such benefits and rights such that they comply with Code Section 457A (with the most limited possible economic effect on the Employee and on the Company).

(b)           ‘Ineligible Compensation’ means compensation relating to services performed for the benefit or on behalf of the Company as determined by the Parent, in its sole discretion regardless of whether the cost of such compensation is actually borne by the Company.  To the extent the Employee performs such services for the Company, as well as for the Parent, and any subsidiary or affiliate of the Company, the determination of what portion of such compensation shall be