Document:

Exhibit 10.70

                         2003 LONG-TERM INCENTIVE PLAN

         FX Energy, Inc., a Nevada corporation (the "Company"), hereby adopts
this "2003 Long-Term Incentive Plan" (the "Plan").

         1. Purposes of the Plan. The Board has adopted this Plan with the
intent, and directs that it be administered as necessary, to attract and retain
the best available personnel for positions of substantial responsibility;
provide additional incentive to Employees, Directors and Consultants; and
promote the success of the Company's business.

         Options granted under the Plan may be Incentive Stock Options or
Nonstatutory Stock Options, as determined by the Administrator at the time of
grant. Stock Purchase Rights may also be granted under the Plan.

         2. Definitions. As used herein, the following definitions shall apply:

                  (a) "Administrator" means the Board or any of its Committees
         as shall be administering the Plan in accordance with section 4 of the
         Plan.

                  (b) "Applicable Laws" means the requirements relating to the
         administration of stock option plans under the corporate laws of the
         state in which the Company is incorporated, federal and state
         securities laws, the Code, the regulations and policies of any stock
         exchange or quotation system on which the Common Stock is listed or
         quoted, and the Applicable Laws of any foreign country or jurisdiction
         where Options or Stock Purchase Rights are or will be granted under the
         Plan.

                  (c) "Board" means the Board of Directors of the Company.

                  (d) "Code" means the Internal Revenue Code of 1986, as
         amended.

                  (e) "Committee" means a committee of Directors appointed by
         the Board in accordance with section 4 of the Plan.

                  (f) "Common Stock" means the common stock of the Company.

                  (g) "Company" means FX Energy, Inc., a Nevada corporation.

                  (h) "Consultant" means any person, including an advisor,
         engaged by the Company or a Parent or Subsidiary to render services to
         such entity, including, at the discretion of the Administrator, an
         entity that is not a natural person.

                  (i) "Director" means a member of the Board.

                  (j) "Disability" means total and permanent disability as
         defined in Section 22(e)(3) of the Code.

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                  (k) "Employee" means any person, including Officers and
         Directors, employed by the Company or any Parent or Subsidiary of the
         Company. A Service Provider shall not cease to be an Employee in the
         case of (i) any leave of absence approved by the Company or (ii)
         transfers between locations of the Company or between the Company, its
         Parent, any Subsidiary, or any successor. For purposes of Incentive
         Stock Options, no such leave may exceed 90 days, unless reemployment
         upon expiration of such leave is guaranteed by statute or contract. If
         reemployment upon expiration of a leave of absence approved by the
         Company is not so guaranteed, then three months following the 91st day
         of such leave, any Incentive Stock Option held by the Optionee shall
         cease to be treated as an Incentive Stock Option and shall be treated
         for tax purposes as a Nonstatutory Stock Option. Neither service as a
         Director nor payment of a Director's fee by the Company shall be
         sufficient to constitute "employment" by the Company.

                  (l) "Exchange Act" means the Securities Exchange Act of 1934,
         as amended.

                  (m) "Fair Market Value" means, as of any date, the value of
         Common Stock determined as follows:

                           (i) if the Common Stock is listed on any established
                  stock exchange or a national market system, including the
                  Nasdaq National Market or the Nasdaq SmallCap Market of the
                  Nasdaq Stock Market, its Fair Market Value shall be the
                  closing sales price for such stock (or the closing bid, if no
                  sales were reported) as quoted on such exchange or system on
                  the day of determination, as reported by Nasdaq, The Wall
                  Street Journal, or such other source as the Administrator
                  deems reliable;

                           (ii) if the Common Stock is regularly quoted in an
                  inter-dealer quotation medium, but selling prices are not
                  reported, the Fair Market Value of a Share of Common Stock
                  shall be the mean between the high bid and low asked prices
                  for the Common Stock on the day of determination, as reported
                  by such inter-dealer quotation medium, The Wall Street
                  Journal, or such other source as the Administrator deems
                  reliable; or

                           (iii) in the absence of an established market for the
                  Common Stock, the Fair Market Value shall be determined in
                  good faith by the Administrator.

                  (n) "Incentive Stock Option" means an Option intended to
         qualify as an incentive stock option within the meaning of Section 422
         of the Code and the regulations promulgated thereunder.

                  (o) "Inside Director" means a Director who is an Employee.

                  (p) "Nonstatutory Stock Option" means an Option not intended
         to qualify as an Incentive Stock Option.

                  (q) "Notice of Grant" means a written or electronic notice
         evidencing certain terms and conditions of an individual Option or
         Stock Purchase Right grant. The Notice of Grant is part of, and subject
         to the terms of, the Option Agreement.

                  (r) "Officer" means a person who is an executive officer of
         the Company within the meaning of Section 16 of the Exchange Act and
         the rules and regulations promulgated thereunder.

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                  (s) "Option" means a stock option granted pursuant to the
         Plan.

                  (t) "Option Agreement" means an agreement between the Company
         and an Optionee evidencing the terms and conditions of an individual
         Option grant. The Option Agreement is subject to the terms and
         conditions of the Plan.

                  (u) "Option Exchange Program" means a program whereby
         outstanding Options are surrendered in exchange for Options with a
         lower exercise price.

                  (v) "Optioned Stock" means the Common Stock subject to an
         Option or Stock Purchase Right.

                  (w) "Optionee" means the holder of an outstanding Option or
         Stock Purchase Right granted under the Plan.

                  (x) "Outside Director" means a Director who meets the
         definition of both a "Non-Employee Director" (as defined in Rule 16b-3
         of the Exchange Act) and "Outside Director" (as defined in Section
         162(m) of the Code).

                  (y) "Parent" means a "parent corporation," whether now or
         hereafter existing, as defined in Section 424(e) of the Code.

                  (z) "Plan" means this 2003 Long-Term Incentive Plan, as the
         same may be amended and restated from time to time.

                  (aa) "Restricted Stock" means Shares of Common Stock acquired
         pursuant to a grant of Stock Purchase Rights under section 11 of the
         Plan.

                  (bb) "Restricted Stock Purchase Agreement" means a written
         agreement between the Company and the Optionee evidencing the terms and
         restrictions applying to stock purchased under a Stock Purchase Right.
         The Restricted Stock Purchase Agreement is subject to the terms and
         conditions of the Plan and the Notice of Grant.

                  (cc) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any
         successor to Rule 16b-3, as in effect when discretion is being
         exercised with respect to the Plan.

                  (dd) "Section 16(b)" means Section 16(b) of the Exchange Act.

                  (ee) "Service Provider" means an Employee, Director or
         Consultant.

                  (ff) "Share" means a share of Common Stock, as adjusted in
         accordance with section 15 of the Plan.

                  (gg) "Stock Purchase Right" means the right to purchase Common
         Stock pursuant to section 11 of the Plan, as evidenced by a Notice of
         Grant.

                  (hh) "Subsidiary" means a "subsidiary corporation," whether
         now or hereafter existing, as defined in Section 424(f) of the Code.

         3. Stock Subject to the Plan. Subject to the provisions of section 15
of the Plan, the maximum aggregate number of Shares on which Options may be
granted and which may be sold on the exercise of such Options and under
Restricted Stock Purchase Agreements under the Plan is 800,000 Shares. The
Shares may be authorized, but unissued, or reacquired Common Stock.

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         If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares that were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated); provided, however, that Shares that have actually been issued under
the Plan, whether upon exercise of an Option or Right, shall not be returned to
the Plan and shall not become available for future distribution under the Plan,
except that if Shares of Restricted Stock are repurchased by the Company at
their original purchase price, such Shares shall become available for future
grant under the Plan.

         4. Administration of the Plan.

                  (a) Procedure.

                           (i) The Board may designate different Committees to
                  administer the Plan with respect to different groups of
                  Service Providers.

                           (ii) To the extent that the Administrator determines
                  it to be desirable to qualify Options granted hereunder as
                  "performance-based compensation" within the meaning of Section
                  162(m) of the Code, the Plan shall be administered by a
                  Committee of two or more "Outside Directors" within the
                  meaning of Section 162(m) of the Code.

                           (iii) To the extent desirable to qualify transactions
                  hereunder as exempt under Rule 16b-3, the transactions
                  contemplated hereunder shall be structured to satisfy the
                  requirements for exemption under Rule 16b-3.

                           (iv) Other than as provided above, the Plan shall be
                  administered by the Board or a Committee, which Committee
                  shall be constituted to satisfy Applicable Laws.

                  (b) Powers of the Administrator. Subject to the provisions of
         the Plan, and in the case of a Committee, subject to the specific
         duties delegated by the Board to such Committee, the Administrator
         shall have the authority, in its discretion:

                           (i) to determine the Fair Market Value;

                           (ii) to select the Service Providers to whom Options
                  and Stock Purchase Rights may be granted hereunder;

                           (iii) to determine the number of Shares of Common
                  Stock to be covered by each Option and Stock Purchase Right
                  granted hereunder;

                           (iv) to approve forms of agreement for use under the
                  Plan;

                           (v) to determine the terms and conditions, not
                  inconsistent with the terms of the Plan, of any Option or
                  Stock Purchase Right granted hereunder. Such terms and
                  conditions include the exercise price, the time or times when
                  Options or Stock Purchase Rights may be exercised (which may
                  be based on performance criteria), any vesting acceleration or
                  waiver of forfeiture restrictions, and any restriction or
                  limitation regarding any Option or Stock Purchase Right or the
                  Shares of Common Stock relating thereto, based in each case on
                  such factors as the Administrator, in its sole discretion,
                  shall determine;

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                           (vi) to reduce the exercise price of any Option or
                  Stock Purchase Right to the then-current Fair Market Value if
                  the Fair Market Value of the Common Stock covered by such
                  Option or Stock Purchase Right shall have declined since the
                  date the Option or Stock Purchase Right was granted;

                           (vii) to institute an Option Exchange Program;

                           (viii) to construe and interpret the terms of the
                  Plan and awards granted pursuant to the Plan;

                           (ix) to establish, amend and rescind rules and
                  regulations relating to the Plan, including rules and
                  regulations relating to subplans established for the purpose
                  of satisfying applicable foreign laws;

                           (x) to modify or amend each Option or Stock Purchase
                  Right (subject to section 17(c) of the Plan), including the
                  discretionary authority to extend the post-termination
                  exercisability period of Options longer than is otherwise
                  provided for in the Plan;

                           (xi) to authorize any person to execute on behalf of
                  the Company any instrument required to effect the grant of an
                  Option or Stock Purchase Right previously granted by the
                  Administrator;

                           (xii) to correct any defect, supply any omission, or
                  reconcile any inconsistency in the Plan or in any Option
                  Agreement, in a manner and to the extent it shall deem
                  necessary, all of which determinations and interpretations
                  made by the Administrator shall be conclusive and binding on
                  all Optionees, any other holders of Options, and on their
                  legal representatives and beneficiaries;

                           (xiii) except to the extent prohibited by or
                  impermissible in order to obtain treatment desired by the
                  Administrator under Applicable Law or rule, to allocate or
                  delegate all or any portion of its powers and responsibilities
                  to any one or more of its members or to any person(s) selected
                  by it, subject to revocation or modification by the
                  Administrator of such allocation or delegation; and

                           (xiv) to make all other determinations deemed
                  necessary or advisable for administering the Plan.

                  (c) Effect of Administrator's Decision. The Administrator's
         decisions, determinations and interpretations shall be final and
         binding on all Optionees and any other holders of Options or Stock
         Purchase Rights.

         5. Eligibility. Nonstatutory Stock Options and Stock Purchase Rights
may be granted to Service Providers. Incentive Stock Options may be granted only
to Employees.

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         6. Limitations.

                  (a) Designation. Each Option shall be designated in the Option
         Agreement as either an Incentive Stock Option or a Nonstatutory Stock
         Option. However, notwithstanding such designation, to the extent that
         the aggregate Fair Market Value of the Shares with respect to which
         Incentive Stock Options are exercisable for the first time by the
         Optionee during any calendar year (under all Plans of the Company and
         any Parent or Subsidiary) exceeds $100,000, such Options shall be
         treated as Nonstatutory Stock Options. For purposes of this section
         6(a), Incentive Stock Options shall be taken into account in the order
         in which they were granted. The Fair Market Value of the Shares shall
         be determined as of the time the Option with respect to such Shares is
         granted.

                  (b) No Right of Continuing Service or Employment. Neither the
         Plan nor any Option or Stock Purchase Right shall confer upon an
         Optionee any right with respect to continuing the Optionee's
         relationship as a Service Provider with the Company, nor shall they
         interfere in any way with the Optionee's right or the Company's right
         to terminate such relationship at any time, with or without cause.

         7. Term of Plan. Subject to section 21 of the Plan, the Plan shall
become effective upon its adoption by the Board. It shall continue in effect for
a term of 10 years unless terminated earlier under section 17 of the Plan.

         8. Term of Option. The term of each Option shall be stated in the
Option Agreement. In the case of an Incentive Stock Option, the term shall be 10
years from the date of grant or such shorter term as may be provided in the
Option Agreement. Moreover, in the case of an Incentive Stock Option granted to
an Optionee who, at the time the Incentive Stock Option is granted, owns stock
representing more than 10% of the total combined voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Incentive
Stock Option shall be five years from the date of grant or such shorter term as
may be provided in the Option Agreement.

         9. Option Exercise Price and Consideration.

                  (a) Exercise Price. The per Share exercise price for the
         Shares to be issued pursuant to exercise of an Option shall be
         determined by the Administrator and specified in the Option Agreement,
         subject to the following:

                           (i) In the case of an Incentive Stock Option:

                                    (1) granted to an Employee who, at the time
                           the Incentive Stock Option is granted, owns stock
                           representing more than 10% of the voting power of all
                           classes of stock of the Company or any Parent or
                           Subsidiary, the per Share exercise price shall be no
                           less than 110% of the Fair Market Value per Share on
                           the date of grant.

                                    (2) granted to any Employee other than an
                           Employee described in subsection 9(a)(i)(1)
                           immediately above, the per Share exercise price shall
                           be no less than 100% of the Fair Market Value per
                           Share on the date of grant.

                           (ii) In the case of a Nonstatutory Stock Option, the
                  per Share exercise price shall be determined by the
                  Administrator. In the case of a Nonstatutory Stock Option
                  intended to qualify as "performance-based compensation" within
                  the meaning of Section 162(m) of the Code, the per Share
                  exercise price shall be no less than 100% of the Fair Market
                  Value per Share on the date of grant.

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                           (iii) Notwithstanding the foregoing, Options may be
                  granted with a per Share exercise price of less than 100% of
                  the Fair Market Value per Share on the date of grant pursuant
                  to a merger or other corporate transaction.

                  (b) Waiting Period and Exercise Dates. At the time an Option
         is granted, the Administrator shall fix the period within which the
         Option may be exercised and shall determine any conditions that must be
         satisfied before the Option may be exercised.

                  (c) Form of Consideration. The Administrator shall determine
         the acceptable form of consideration for exercising an Option,
         including the method of payment. In the case of an Incentive Stock
         Option, the Administrator shall determine the acceptable form of
         consideration at the time of grant as set forth in the Option
         Agreement. Such consideration may consist entirely of:

                           (i) cash;

                           (ii) check;

                           (iii) promissory note;

                           (iv) other Shares, provided Shares acquired from the
                  Company have been owned by the Optionee for more than six
                  months on the date of surrender and have a Fair Market Value
                  on the date of surrender equal to the aggregate exercise price
                  of the Shares as to which said Option shall be exercised;

                           (v) consideration received by the Company under a
                  cashless exercise program implemented by the Company in
                  connection with the Plan;

                           (vi) a reduction in the amount of any Company
                  liability to the Optionee, including any liability
                  attributable to the Optionee's participation in any
                  Company-sponsored deferred compensation program or
                  arrangement;

                           (vii) any combination of the foregoing methods of
                  payment; or

                           (viii) such other consideration and method of payment
                  for the issuance of Shares to the extent permitted by
                  Applicable Laws.

         Notwithstanding the form of consideration determined by the
         Administrator at the time of grant, the Administrator shall have the
         authority, in its sole and absolute discretion, to accept other forms
         of consideration as the method of payment.

         10. Exercise of Option.

                  (a) Procedure for Exercise; Rights as a Stockholder. Any
         Option granted hereunder shall be exercisable according to the terms of
         the Plan and at such times and under such conditions as determined by
         the Administrator and set forth in the Option Agreement. Unless the
         Administrator provides otherwise, vesting of Options granted hereunder
         shall be tolled during any unpaid leave of absence. An Option may not

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         be exercised for a fraction of a Share. An Option shall be deemed
         exercised when the Company receives: (i) written or electronic notice
         of exercise (in accordance with the Option Agreement) from the person
         entitled to exercise the Option, and (ii) full payment for the Shares
         with respect to which the Option is exercised. Full payment may consist
         of any consideration and method of payment authorized by the
         Administrator and permitted by the Option Agreement and the Plan.
         Shares issued upon exercise of an Option shall be issued in the name of
         the Optionee or, if requested by the Optionee, in the name of the
         Optionee and his or her spouse or in the name of a family trust of
         which the Optionee is a trustee. Until the Shares are issued (as
         evidenced by the appropriate entry on the books of the Company or of a
         duly authorized transfer agent of the Company), no right to vote or
         receive dividends or any other rights as a stockholder shall exist with
         respect to the Optioned Stock, notwithstanding the exercise of the
         Option. The Company shall issue (or cause to be issued) such Shares
         promptly after the Option is exercised; provided that if the Company
         shall be advised by counsel that certain requirements under the
         federal, state or foreign securities laws must be met before Shares may
         be issued under this Plan, the Company shall notify all persons who
         have been issued Options, and the Company shall have no liability for
         failure to issue Shares under any exercise of Options because of delay
         while such requirements are being met or the inability of the Company
         to comply with such requirements. No adjustment will be made for a
         dividend or other right for which the record date is prior to the date
         the Shares are issued, except as provided in section 15 of the Plan.
         Exercising an Option in any manner shall decrease the number of Shares
         thereafter available, both for purposes of the Plan and for sale under
         the Option, by the number of Shares as to which the Option is
         exercised.

                  (b) Termination of Relationship as a Service Provider. If an
         Optionee ceases to be a Service Provider, other than upon the
         Optionee's death or Disability, the Optionee may exercise his or her
         Option within such period of time as is specified in the Option
         Agreement to the extent that the Option is vested on the date of
         termination (but in no event later than the expiration of the term of
         such Option as set forth in the Option Agreement). In the absence of a
         specified time in the Option Agreement, the Option shall remain
         exercisable for three months following the Optionee's termination. If,
         on the date of termination, the Optionee is not vested as to his or her
         entire Option, the Shares covered by the unvested portion of the Option
         shall revert to the Plan. If, after termination, the Optionee does not
         exercise his or her Option within the time specified by the
         Administrator, the Option shall terminate, and the Shares covered by
         such Option shall revert to the Plan.

                  (c) Disability of Optionee. If an Optionee ceases to be a
         Service Provider as a result of the Optionee's Disability, the Optionee
         may exercise his or her Option within such period of time as is
         specified in the Option Agreement to the extent the Option is vested on
         the date of termination (but in no event later than the expiration of
         the term of such Option as set forth in the Option Agreement). In the
         absence of a specified time in the Option Agreement, the Option shall
         remain exercisable for 12 months following the Optionee's termination.
         If, on the date of termination, the Optionee is not vested as to his or
         her entire Option, the Shares covered by the unvested portion of the
         Option shall revert to the Plan. If, after termination, the Optionee
         does not exercise his or her Option within the time specified herein,
         the Option shall terminate, and the Shares covered by such Option shall
         revert to the Plan.

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                  (d) Death of Optionee. If an Optionee dies while a Service
         Provider, the Option may be exercised within such period of time as is
         specified in the Option Agreement (but in no event later than the
         expiration of the term of such Option as set forth in the Notice of
         Grant), by the Optionee's estate or by a person who acquires the right
         to exercise the Option by bequest or inheritance, but only to the
         extent that the Option is vested on the date of death. In the absence
         of a specified time in the Option Agreement, the Option shall remain
         exercisable for 12 months following the Optionee's termination. If, at
         the time of death, the Optionee is not vested as to his or her entire
         Option, the Shares covered by the unvested portion of the Option shall
         immediately revert to the Plan. The Option may be exercised by the
         executor or administrator of the Optionee's estate or, if none, by the
         person(s) entitled to exercise the Option under the Optionee's will or
         the laws of descent or distribution. If the Option is not so exercised
         within the time specified herein, the Option shall terminate, and the
         Shares covered by such Option shall revert to the Plan.

         11. Stock Purchase Rights.

                  (a) Rights to Purchase. Stock Purchase Rights may be issued
         either alone, in addition to, or in tandem with other awards granted
         under the Plan and/or cash awards made outside of the Plan. After the
         Administrator determines that it will offer Stock Purchase Rights under
         the Plan, it shall advise the offeree in writing or electronically, by
         means of a Notice of Grant, of the terms, conditions and restrictions
         related to the offer, including the number of Shares that the offeree
         shall be entitled to purchase, the price to be paid, and the time
         within which the offeree must accept such offer. The offer shall be
         accepted by execution of a Restricted Stock Purchase Agreement in the
         form determined by the Administrator.

                  (b) Repurchase Option. Unless the Administrator determines
         otherwise, the Restricted Stock Purchase Agreement shall grant the
         Company a repurchase option exercisable upon the voluntary or
         involuntary termination of the purchaser's service with the Company for
         any reason (including death or Disability). The purchase price for
         Shares repurchased pursuant to the Restricted Stock Purchase Agreement
         shall be the original price paid by the purchaser plus interest at the
         rate of 10% per year from the date of the original purchase and may be
         paid by cancellation of any indebtedness of the purchaser to the
         Company. The repurchase option shall lapse at a rate determined by the
         Administrator.

                  (c) Other Provisions. The Restricted Stock Purchase Agreement
         shall contain such other terms, provisions and conditions not
         inconsistent with the Plan as may be determined by the Administrator in
         its sole discretion.

                  (d) Rights as a Stockholder. Once the Stock Purchase Right is
         exercised, the purchaser shall have the rights equivalent to those of a
         stockholder and shall be a stockholder when his or her purchase is
         entered upon the records of the duly authorized transfer agent of the
         Company. No adjustment will be made for a dividend or other right for
         which the record date is prior to the date the Stock Purchase Right is
         exercised, except as provided in section 15 of the Plan.

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         12. Withholding. If the grant or exercise of an Option or a Stock
Purchase Right pursuant to this Plan, or any other event in connection with any
such grant or exercise, creates an obligation to withhold income and employment
taxes pursuant to the Applicable Laws, such obligation may, at the sole and
absolute discretion of the Administrator at the time of the grant of the Option
or Stock Purchase Right and to the extent permitted by the terms of the Option
or Stock Purchase Right and the then-governing provisions of the Code and the
Exchange Act, be satisfied (a) by the holder of the Option or Stock Purchase
Right delivering to the Company an amount of cash equal to such withholding
obligation; (b) by the Company withholding from any compensation or other amount
owing to the holder of the Option or Stock Purchase Right the amount (in cash,
stock or other property as the Company may determine) of the withholding
obligation; (c) by the Company withholding Shares of stock subject to the Option
or Stock Purchase Right with a Fair Market Value equal to such obligation; or
(d) by the holder of the Option or Stock Purchase Right either delivering Shares
of stock that have been owned by the holder for more than six months or
canceling Options or other rights to acquire stock from the Company that have
been held for more than six months with a Fair Market Value equal to such
requirements. In all events, delivery of Shares of stock issuable on exercise of
the Option or on grant of the Stock Purchase Right shall be conditioned upon and
subject to the satisfaction or making provision for the satisfaction of the
withholding obligation of the Company resulting from the grant or exercise of
the Option, grant of the Stock Purchase Right, or any other event in accordance
with the foregoing. The Company shall be further authorized to take such other
action as may be necessary, in the opinion of the Company, to satisfy all
obligations for the payment of such taxes.

         13. Nontransferability of Options and Stock Purchase Rights.

         (a) An Option or Stock Purchase Right may not be sold, pledged,
assigned, hypothecated, transferred or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee, all save and except only (i) an
Optionee's family member who has acquired the Option or Stock Purchase Right
through a gift or a transfer for value pursuant to a domestic relations order in
settlement of marital property rights or a transfer to an entity in which more
that 50% of the voting interests owned by an Optionee's family members or the
Optionee in exchange for an interest in that entity, all as more particularly
provided in the general instructions to Form S-8 or any successor form under the
Securities Act of 1933; or (ii) unless determined otherwise by the
Administrator, in which case such Option or Stock Purchase Right shall contain
such additional terms and conditions as the Administrator deems appropriate.

         (b) An Incentive Stock Option may not be sold, pledged, assigned,
hypothecated, transferred or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised, during the lifetime of
the Optionee, only by the Optionee. An Incentive Stock Option can only be
exercised by Optionee. In the event of the death of Optionee while an eligible
employee of the Company or within three months after termination thereof, this
Option can be exercised by the executor or personal representative of the estate
of Optionee or such other person who has acquired this Option as a bequest or by
inheritance from Optionee.

         14. Grants to Directors and Officers. To the extent the Company has a
class of securities registered under Section 12 of the Exchange Act, Options or
Stock Purchase Rights granted under the Plan to Directors and Officers (as used
in Rule 16b-3 promulgated under the Exchange Act or any amendment or successor
rule of like tenor) intended to qualify for the exemption from Section 16(b) of
the Exchange Act provided in Rule 16b-3 shall, in addition to being subject to
the other restrictions and limitations set forth in this Plan, be made as
follows:

                  (a) Requirements for Grant to Officer or Director. A
         transaction whereby there is a grant of an Option or Stock Purchase
         Right pursuant to this Plan must satisfy one of the following:

                           (i) The transaction must be approved by the Board or
                  duly authorized Committee composed solely of two or more
                  Outside Directors of the Company.

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                           (ii) The transaction must be approved or ratified, in
                  compliance with Section 14 of the Exchange Act, by either: (1)
                  the affirmative vote of the holders of a majority of the
                  securities of the Company present or represented and entitled
                  to vote at a meeting of the stockholders of the Company held
                  in accordance with the Applicable Laws of the state of
                  incorporation of the Company; or (2) if allowed by applicable
                  state law, the written consent of the holders of a majority,
                  or such greater percentage as may be required by Applicable
                  Laws of the state of incorporation of the Company, of the
                  securities of the Company entitled to vote. If the transaction
                  is ratified by the stockholders, such ratification must occur
                  no later than the date of the next annual meeting of
                  stockholders.

                           (iii) The stock acquired must be held by the Officer
                  or Director for a period of six months subsequent to the date
                  of the grant; provided that if the transaction involves a
                  derivative security (as defined in Section 16 of the Exchange
                  Act), this condition shall be satisfied if at least six months
                  elapse from the date of acquisition of the derivative security
                  to the date of disposition of the derivative security (other
                  than on exercise or conversion) or its underlying equity
                  security.

                  (b) Approval Required for Disposition of Securities. Any
         transaction involving the disposition by the Company of its securities
         in connection with Options or Stock Purchase Rights granted pursuant to
         this Plan shall:

                           (i) be approved by the Board or duly authorized
                  Committee composed solely of two or more Outside Directors; or

                           (ii) be approved or ratified, in compliance with
                  Section 14 of the Exchange Act, by either: (1) the affirmative
                  vote of the holders of a majority of the securities of the
                  Company present or represented and entitled to vote at a
                  meeting duly held in accordance with the Applicable Laws of
                  the state of incorporation of the Company; or (2) if allowed
                  by applicable state law, the written consent of the holders of
                  a majority, or such greater percentage as may be required by
                  Applicable Laws of the state of incorporation of the Company,
                  of the securities of the Company entitled to vote; provided
                  that such ratification occurs no later than the date of the
                  next annual meeting of stockholders.

All of the foregoing restrictions and limitations are based on the governing
provisions of the Exchange Act and the rules and regulations promulgated
thereunder as of the date of adoption of this Plan. If, at any time, the
governing provisions are amended to permit an Option or Stock Purchase Right to
be granted or exercised pursuant to Rule 16b-3 or any amendment or successor
rule of like tenor without one or more of the foregoing restrictions or
limitations, or the terms of such restrictions or limitations are modified, the
Administrator may award Options or Stock Purchase Rights to Directors and
Officers and may modify outstanding Options or Stock Purchase Rights in
accordance with such changes, all to the extent that such action by the
Administrator does not disqualify the Options or Stock Purchase Rights from
exemption under the provisions of Rule 16b-3 or any amendment or successor rule
of similar tenor.

                                      -11-
<PAGE>

         15. Adjustments upon Changes in Capitalization, Dissolution, Merger or
Asset Sale.

                  (a) Changes in Capitalization. Subject to any required action
         by the stockholders of the Company, the number of Shares of Common
         Stock covered by each outstanding Option and Stock Purchase Right, the
         number of Shares of Common Stock that have been authorized for issuance
         under the Plan but as to which no Options or Stock Purchase Rights have
         yet been granted or which have been returned to the Plan upon
         cancellation or expiration of an Option or Stock Purchase Right, the
         number of Shares that may be added annually to the Shares reserved
         under the Plan by the Board (pursuant to section 3), as well as the
         price per Share of Common Stock covered by each such outstanding Option
         or Stock Purchase Right, shall be proportionately adjusted for any
         increase or decrease in the number of issued Shares of Common Stock
         resulting from a stock split, reverse stock split, stock dividend,
         combination or reclassification of the Common Stock, or any other
         increase or decrease in the number of issued Shares of Common Stock
         effected without receipt of consideration by the Company; provided,
         however, that conversion of any convertible securities of the Company
         shall not be deemed to have been effected without receipt of
         consideration within the meaning of the preceding clause. Such
         adjustment shall be made by the Board, whose determination in that
         respect shall be final, binding and conclusive. Except as expressly
         provided herein, no issuance 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 of Common Stock subject to an
         Option or Stock Purchase Right.

                  (b) Dissolution or Liquidation. In the event of the proposed
         dissolution or liquidation of the Company, the Administrator shall
         notify each Optionee as soon as practicable prior to the effective date
         of such proposed transaction. The Administrator in its discretion may
         provide for an Optionee to have the right to exercise his or her Option
         until 10 days prior to such transaction as to all of the Optioned Stock
         covered thereby, including Shares as to which the Option would not
         otherwise be exercisable. In addition, the Administrator may provide
         that any Company repurchase option applicable to any Shares purchased
         upon exercise of an Option or Stock Purchase Right shall lapse as to
         all such Shares, provided the proposed dissolution or liquidation takes
         place at the time and in the manner contemplated. To the extent it has
         not been previously exercised, an Option or Stock Purchase Right will
         terminate immediately prior to the consummation of such proposed
         action.

                                      -12-
<PAGE>

                  (c) Merger or Asset Sale. In the event of a merger of the
         Company with or into another corporation, or the sale of substantially
         all of the assets of the Company, each outstanding Option and Stock
         Purchase Right shall be assumed or an equivalent Option or right
         substituted by the successor corporation or a Parent or Subsidiary of
         the successor corporation. With respect to Options granted to an
         Outside Director pursuant to section 14 that are assumed or substituted
         for, if following such assumption or substitution the Optionee's status
         as a Director or a director of the successor corporation, as
         applicable, is terminated other than upon a voluntary resignation by
         the Optionee, then the Optionee shall fully vest in and have the right
         to exercise the Option as to all of the Optioned Stock, including
         Shares as to which it would not otherwise be vested or exercisable.

                  In the event that the successor corporation refuses to assume
         or substitute for the Option or Stock Purchase Right, the Optionee
         shall fully vest in and have the right to exercise the Option or Stock
         Purchase Right as to all of the Optioned Stock, including Shares as to
         which it would not otherwise be vested or exercisable. If an Option or
         Stock Purchase Right becomes fully vested and exercisable in lieu of
         assumption or substitution in the event of a merger or sale of assets,
         the Administrator shall notify the Optionee in writing or
         electronically that the Option or Stock Purchase Right shall be fully
         vested and exercisable for a period of 15 days from the date of such
         notice, and the Option or Stock Purchase Right shall terminate upon the
         expiration of such period.

                  For the purposes of this subsection, the Option or Stock
         Purchase Right shall be considered assumed if, following the merger or
         sale of assets, the Option or right confers the right to purchase or
         receive, for each Share of Optioned Stock subject to the Option or
         Stock Purchase Right immediately prior to the merger or sale of assets,
         the consideration (whether stock, cash or other securities or property)
         received in the merger or sale of assets by holders of Common Stock for
         each Share held on the effective date of the transaction (and if
         holders were offered a choice of consideration, the type of
         consideration chosen by the holders of a majority of the outstanding
         Shares); provided, however, that if such consideration received in the
         merger or sale of assets is not solely common stock of the successor
         corporation or its Parent, the Administrator may, with the consent of
         the successor corporation, provide for the consideration to be received
         upon the exercise of the Option or Stock Purchase Right, for each Share
         of Optioned Stock subject to the Option or Stock Purchase Right, to be
         solely common stock of the successor corporation or its Parent equal in
         Fair Market Value to the per Share consideration received by holders of
         Common Stock in the merger or sale of assets.

         16. Date of Grant. The date of grant of an Option or Stock Purchase
Right shall be, for all purposes, the date on which the Administrator makes the
determination granting such Option or Stock Purchase Right, or such other later
date as is determined by the Administrator. Notice of the determination shall be
provided to each Optionee within a reasonable time after the date of such grant.

         17. Amendment and Termination of the Plan.

                  (a) Amendment and Termination. The Board may at any time
         amend, alter, suspend or terminate the Plan.

                  (b) Stockholder Approval. The Company shall obtain stockholder
         approval of any Plan amendment to the extent necessary and desirable to
         comply with Applicable Laws.

                  (c) Effect of Amendment or Termination. No amendment,
         alteration, suspension or termination of the Plan shall impair the
         rights of any Optionee, unless mutually agreed otherwise between the
         Optionee and the Administrator, which agreement must be in writing and
         signed by the Optionee and the Company. Termination of the Plan shall
         not affect the Administrator's ability to exercise the powers granted
         to it hereunder with respect to Options granted under the Plan prior to
         the date of such termination.

                                      -13-
<PAGE>

         18. Conditions upon Issuance of Shares.

                  (a) Legal Compliance. Shares shall not be issued pursuant to
         the exercise of an Option or Stock Purchase Right unless the exercise
         of such Option or Stock Purchase Right and the issuance and delivery of
         such Shares shall comply with Applicable Laws and shall be further
         subject to the approval of counsel for the Company with respect to such
         compliance.

                  (b) Investment Representations. As a condition to the exercise
         of an Option or Stock Purchase Right, the Company may require the
         person exercising such Option or Stock Purchase Right to represent and
         warrant at the time of any such exercise that the Shares are being
         purchased only for investment and without any present intention to sell
         or distribute such Shares if, in the opinion of counsel for the
         Company, such a representation is required.

         19. Inability To Obtain Authority. The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

         20. Reservation of Shares. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

         21. Stockholder Approval. The Plan shall be subject to approval by the
stockholders of the Company within 12 months after the date the Plan is adopted.
Such stockholder approval shall be obtained in the manner and to the degree
required under Applicable Laws.

                             SECRETARY'S CERTIFICATE

         The undersigned, the duly constituted and elected secretary of FX
Energy, Inc., hereby certifies that pursuant to resolution duly adopted by the
stockholders on June 11, 2003, in accordance with the requirements of law and
the Company's articles of incorporation and bylaws, the foregoing FX Energy,
Inc. 2003 Long-Term Incentive Plan was approved by the affirmative vote of the
holders of a majority of the Shares of Common Stock.

         DATED this 11th day of June, 2003.

                                                   /s/ Scott J. Duncan
                                                  ------------------------------
                                                   Scott J. Duncan, Secretary

                                      -14-Exhibit 10.71

                            INDEMNIFICATION AGREEMENT

         THIS INDEMNIFICATION AGREEMENT (this "Agreement") is entered into
effective as of _______________________, 2003, by and between FX ENERGY, Inc., a
Nevada corporation (the "Corporation"), and _____________________("Indemnitee"),
based on the following premises.

                                    Premises

         A. The Restated Articles of Incorporation of the Corporation (the
"Articles") and the Bylaws (the "Bylaws") provide for indemnification of the
Corporation's directors and officers to the fullest extent permitted by the
Nevada Revised Statutes (the "Statute").

         B. The Articles, Bylaws, and Statute contemplate that contracts and
other arrangements may be entered into with respect to indemnification of
officers and directors.

         C. In addition to any insurance purchased by the Corporation on behalf
of Indemnitee, it is reasonable, prudent, and necessary for the Corporation to
obligate itself contractually to indemnify Indemnitee so that he may remain free
from undue concern that he will not be adequately protected both during his
service as an executive officer and a director of the Corporation and following
any termination of such service.

         D. The directors of the Corporation have duly approved this Agreement
and the indemnification provided herein with the express recognition that the
indemnification arrangements provided herein exceed that which the Corporation
would be required to provide pursuant to Section 78.751 of the Statute.

                                    Agreement

         NOW, THEREFORE, in consideration of the premises and the covenants
contained herein, the Corporation and Indemnitee do hereby covenant and agree as
follows:

         1. Definitions. As used in this Agreement:

                  (a) The term "Proceeding" shall include any threatened,
         pending, or completed action, suit, or proceeding, whether brought by
         or in the right of the Corporation or otherwise and whether of a civil,
         criminal, administrative, or investigative nature, in which Indemnitee
         was, is, or will be involved as a party, witness, or otherwise, by
         reason of the fact that Indemnitee is or was a director, officer,
         agent, or advisor of the Corporation, by reason of any action taken by
         him or of any inaction on his part while acting as a director, officer,
         agent, or advisor of the Corporation, or by reason of the fact that he
         is or was serving at the request of the Corporation as a director,
         officer, employee, agent, or advisor of another corporation,
         partnership, joint venture, trust, limited liability company, or other
         entity or enterprise, in each case whether or not he is acting or
         serving in any such capacity at the time any liability or expense is
         incurred for which indemnification or reimbursement can be provided
         under this Agreement.

                                      -1-
<PAGE>

                  (b) The term "Expenses" shall include any judgments, fines,
         and penalties against Indemnitee in connection with a Proceeding;
         amounts paid by Indemnitee in settlement of a Proceeding; and all
         attorneys' fees and disbursements, accountants' fees and disbursements,
         private investigation fees and disbursements, retainers, court costs,
         payments of attachment, appeal or other bonds or security, transcript
         costs, fees of experts, fees and expenses of witnesses, travel
         expenses, duplicating costs, printing and binding costs, telephone
         charges, postage, delivery service fees, and all other disbursements or
         expenses reasonably incurred by or for Indemnitee in connection with
         prosecuting, defending, preparing to prosecute or defend,
         investigating, appealing, or being or preparing to be a witness in a
         Proceeding or establishing Indemnitee's right or entitlement to
         indemnification for any of the foregoing.

                  (c) Reference to "other enterprise" shall include employee
         benefit plans; references to "fines" shall include any excise tax
         assessed with respect to any employee benefit plan; references to
         "serving at the request of the Corporation" shall include any service
         as a director, officer, employee, agent, or advisor with respect to an
         employee benefit plan, its participants, or beneficiaries; and a person
         who acted in good faith and in a manner he reasonably believed to be in
         the interests of the participants and beneficiaries of an employee
         benefit plan shall be deemed to have acted in a manner "not opposed to
         the best interests of the Corporation" as referred to in this
         Agreement.

                  (d) The term "substantiating documentation" shall mean copies
         of bills or invoices for costs incurred by or for Indemnitee, or copies
         or court or agency orders or decrees or settlement agreements, as the
         case may be, accompanied by a sworn statement from Indemnitee that such
         bills, invoices, court or agency orders or decrees or settlement
         agreements, represent costs or liabilities meeting the definition of
         "Expenses" herein.

                  (e) The term "Independent Counsel" shall mean an attorney, law
         firm, or member of a law firm, who (or which) is licensed to practice
         law in the state of Nevada and is experienced in matters of corporation
         law and neither presently is, nor in the past five years has been,
         retained to represent (i) the Corporation or Indemnitee in any other
         matter material to either such party; or (ii) any other party to the
         Proceeding giving rise to a claim for indemnification hereunder.
         Notwithstanding the foregoing, the term "Independent Counsel" shall not
         include any person who, under the applicable standards of professional
         conduct then prevailing, would have a conflict of interest in
         representing either the Corporation or Indemnitee in an action to
         determine Indemnitee's rights under this Agreement. From time to time,
         the Corporation may select and preapprove the names of persons or law
         firms that it deems qualified as Independent Counsel under the
         foregoing criteria. Further, at the request of Indemnitee, the
         Corporation shall review the qualifications and suitability under the
         foregoing criteria of persons or law firms selected by Indemnitee and
         preapprove them as Independent Counsel if they meet the foregoing
         criteria. An Independent Counsel that has already been preapproved by
         the board of directors may be appointed as Independent Counsel without
         any further evaluation, so long as such prospective Independent Counsel
         continues, as determined by the board of directors, to remain
         independent.

                                      -2-
<PAGE>

         2. Indemnity of Director or Officer. The Corporation hereby agrees to
hold harmless and indemnify Indemnitee against any and all Expenses incurred by
reason of the fact that Indemnitee is or was a director, officer, agent, or
advisor of the Corporation, or is or was serving at the request of the
Corporation as a director, officer, employee, agent or advisor of another
corporation, partnership, joint venture, trust, limited liability company, or
other entity or enterprise, to the fullest extent permitted by applicable law.
The termination of any Proceeding by judgment, order of the court, settlement,
conviction, or upon a plea of nolo contendere, or its equivalent, shall not, of
itself, create a presumption that Indemnitee is not entitled to indemnification,
and with respect to any criminal proceeding, shall not create a presumption that
such person believed that his conduct was unlawful. The indemnification provided
herein shall be applicable whether or not the breach of any standard of care or
duty, including a breach of a fiduciary duty, of the Indemnitee is alleged or
proven, except as limited by section 3 herein. Notwithstanding the foregoing, in
the case of any Proceeding brought by or in the right of the Corporation,
Indemnitee shall not be entitled to indemnification for any claim, issue, or
matter as to which Indemnitee has been adjudged by a court of competent
jurisdiction, after exhaustion of all appeals therefrom, to be liable to the
Corporation or for amounts paid in settlement to the Corporation unless, and
only to the extent that, the court in which the Proceeding was brought or
another court of competent jurisdiction determines, on application, that in view
of all the circumstances, the person is fairly and reasonably entitled to
indemnity for such expenses as the court deems proper.

         3. Limit on Indemnification. Notwithstanding any breach of any standard
of care or duty, including breach of a fiduciary duty, by the Indemnitee, the
Corporation shall indemnify Indemnitee except when a final adjudication
establishes that Indemnitee's acts or omissions involved intentional misconduct,
fraud, or a knowing violation of law and were material to the cause of action.

         4. Choice of Counsel. Indemnitee shall be entitled to employ, and be
reimbursed for the fees and disbursements of, counsel separate from that chosen
by any other person or persons whom the Corporation is obligated to indemnify
with respect to the same or any related or similar Proceeding.

         5. Advances of Expenses. Expenses (other than judgments, penalties,
fines, and settlements) incurred by Indemnitee shall be paid by the Corporation,
in advance of the final disposition of the Proceeding, within 10 days after
receipt of Indemnitee's written request accompanied by substantiating
documentation.

         6. Officer and Director Liability Insurance. The Corporation shall,
from time to time, make the good faith determination whether or not it is
practicable for the Corporation to obtain and maintain a policy or policies of
insurance with reputable insurance companies providing the officers and
directors of the Corporation with coverage for losses from wrongful acts, or to
ensure the Corporation's performance of its indemnification obligations under
this Agreement. Among other considerations, the Corporation will weigh the costs
of obtaining such insurance coverage against the protection afforded by such
coverage. The Corporation shall consult with and be heard by Indemnitee in
connection with the Corporation's actions hereunder. In all policies of director
and officer liability insurance, (a) Indemnitee shall be named as an insured in
such a manner as to provide Indemnitee the same rights and benefits as are
accorded to the most favorably insured of the Corporation's directors, if
Indemnitee is a director, or of the Corporation's officers, if Indemnitee is not
a director of the Corporation but is an officer; and (b) the policy shall
provide that it shall not be cancelled or materially modified without 30 days'
prior written notice to Indemnitees. Notwithstanding the foregoing, the
Corporation shall have no obligation to obtain or maintain such insurance if the
Corporation determines in good faith that such insurance is not reasonably
available, if the premium costs for such insurance are disproportionate to the
amount of coverage provided, if the coverage provided by such insurance is
limited by exclusions so as to provide an insufficient benefit, or if Indemnitee
is covered by similar insurance maintained by a subsidiary or parent of the
Corporation.

                                      -3-
<PAGE>

         7. Indemnification Trust Fund or Other Financial Arrangements. Pursuant
to NRS 78.752 or any successor statute, the Corporation shall establish an
indemnification trust fund or make other financial arrangements acceptable to
Indemnitee for Indemnitee's benefit. Such fund or other arrangements shall be
available to Indemnitee for payment of expenses upon the Corporation's failure,
inability, or refusal to pay expenses incurred by the Indemnitee.

         8. Right of Indemnitee to Indemnification upon Application; Selection
of Independent Counsel; Procedure upon Application.

                  (a) Any application for indemnification under this Agreement,
         other than when Expenses are paid in advance of any final disposition
         pursuant to section 5 hereof, shall be submitted to the board of
         directors. If a quorum of the board of directors were not parties to
         the action, a majority of such directors may determine whether
         indemnification of the applicant is proper in the circumstances or may
         have such determination made by Independent Counsel in a written
         decision. If a quorum of the board directors who were not parties to
         the action cannot be obtained, the board of directors shall have such
         determination made by Independent Counsel in a written decision.
         Notwithstanding the foregoing, however, the board of directors may
         under any circumstances submit the determination of whether
         indemnification is proper in the circumstances to the stockholders. The
         board of directors shall respond to a request for indemnification or
         initiate the process of submitting the determination to the
         stockholders within 45 days after receipt by the Corporation of the
         written application for indemnification.

                  (b) If required, Independent Counsel shall be selected by the
         board of directors, and the Corporation shall give written notice to
         Indemnitee advising him of the identity of Independent Counsel so
         selected. Indemnitee may, within seven days after such written notice
         of selection shall have been given, deliver to the Corporation a
         written objection to such selection. Such objection may be asserted
         only on the ground that Independent Counsel so selected does not meet
         the requirements of "Independent Counsel," as defined in section 1, and
         the objection shall set forth with particularity the factual basis of
         such assertion. If such written objection is made, Independent Counsel
         so selected may not serve as Independent Counsel unless and until a
         court has determined that such objection is without merit. If, within
         20 days after submission by Indemnitee of a written objection to the
         Independent Counsel selected, the Corporation has failed to identify a
         replacement Independent Counsel, the Indemnitee may petition any court
         of competent jurisdiction for resolution of any objection that shall
         have been made by Indemnitee to the Corporation's selection of
         Independent Counsel and for appointment as Independent Counsel of a
         person selected by such court or by such other person as such court
         shall designate, and the person with respect to whom an objection is so
         resolved or the person so appointed shall act as Independent Counsel.
         The Corporation shall pay any and all reasonable fees and expenses of
         Independent Counsel incurred by such Independent Counsel in connection
         with its fees and expenses incident to the procedures of this section 8
         regardless of the manner in which such Independent counsel was selected
         or appointed.

                                      -4-
<PAGE>

                  (c) The right to indemnification or advances as provided by
         this Agreement shall be enforceable by Indemnitee in any court of
         competent jurisdiction. The burden of proving that indemnification is
         not appropriate shall be on the Corporation. Neither the failure of the
         Corporation (including its board of directors or Independent Counsel)
         to have made a determination prior to the commencement of such action
         that indemnification is proper in the circumstances, nor an actual
         determination by the Corporation (including its board of directors or
         Independent Counsel) that indemnification is not proper in the
         circumstances, shall be a defense to the action or create a presumption
         that indemnification is not proper in the circumstances.

         9. Notice to Insurers. If, at the time of the receipt of an application
for indemnification pursuant to section 2 hereof or a request for advances of
expenses pursuant to section 5 hereof, the Corporation has director and officer
liability insurance in effect, the Corporation shall give prompt notice of the
commencement of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Corporation shall
thereafter take all necessary or desirable action to cause such insurers to pay,
on behalf of the Indemnitee, all amounts payable as a result of such Proceeding
in accordance with the terms of such policies.

         10. Undertaking by Indemnitee. Indemnitee hereby undertakes to repay to
the Corporation any advances of Expenses pursuant to this Agreement to the
extent that it is ultimately determined that Indemnitee is not entitled to
indemnification.

         11. Indemnification Hereunder Not Exclusive. The indemnification and
advancement of Expenses provided by this Agreement shall not be deemed exclusive
of any other rights to which Indemnitee may be entitled under the Articles or
Bylaws, the Statute, any policy or policies of directors' and officers'
liability insurance, any agreement, or otherwise, both as to action in his
official capacity and as to action in another capacity while holding such
office. However, Indemnitee shall reimburse the Corporation for amounts paid to
him under this Agreement in an amount equal to any payments received pursuant to
such other rights to the extent such payments duplicate any payments received
pursuant to this Agreement.

         12. Continuation of Indemnity. All agreements and obligations of the
Corporation contained herein shall continue during the period Indemnitee is a
director, officer, agent, or advisor of the Corporation (or is or was serving at
the request of the Corporation as a director, officer, employee, agent, or
advisor of another corporation, partnership, joint venture, trust, limited
liability company, or other enterprise) and shall continue thereafter so long as
Indemnitee shall be subject to any possible Proceeding.

         13. Partial Indemnification. If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Corporation for some or a
portion of Expenses, but not, however, for the total amount thereof, the
Corporation shall nevertheless indemnify Indemnitee for the portion of such
Expenses to which Indemnitee is entitled.

         14. Settlement of Claims. The Corporation shall not be liable to
indemnify Indemnitee under this Agreement for any amounts paid in settlement of
any Proceeding effected without the Corporation's written consent. The
Corporation shall not settle any Proceeding in any manner that would impose any
penalty or limitation on Indemnitee's rights under this Agreement without
Indemnitee's written consent. Neither the Corporation nor Indemnitee will
unreasonably withhold its consent to any proposed settlement. The Corporation
shall not be liable to indemnify Indemnitee under this Agreement with regard to
any judicial award if the Corporation was not given a reasonable and timely
opportunity, at its expense, to participate in the defense of such action.

                                      -5-
<PAGE>

         15. Enforcement.

                  (a) The Corporation expressly confirms and agrees that it has
         entered into this Agreement and assumed the obligations imposed on the
         Corporation hereby in order to induce Indemnitee to serve as a director
         or officer of the Corporation, and acknowledges that Indemnitee is
         relying upon this Agreement in continuing as a director or officer.

                  (b) Without limitation of any kind on the right of the
         Indemnify to indemnity provided herein, n the event that it shall be
         necessary or desirable for the Indemnitee to retain legal counsel
         and/or incur other costs and expenses in connection with the
         interpretation or enforcement of any or all of Indemnitee's rights
         under this Agreement, Indemnitee shall be entitled to recover from the
         Corporation reasonable attorney's fees, costs, and expenses incurred by
         Indemnitee in connection with the interpretation or enforcement of said
         rights. The Corporation shall make payment to the Indemnitee at the
         time such attorney's fees, costs, and expenses are incurred by
         Indemnitee. If, however, the Indemnitee does not prevail in such
         actions, Indemnitee shall repay any and all such amounts to the
         Corporation.

         16. Governing Law; Binding Effect; Amendment and Termination;
Construction.

                  (a) This Agreement shall be interpreted and enforced in
         accordance with the laws of the state of Nevada.

                  (b) This Agreement shall be binding upon the Corporation, its
         successors and assigns, and shall inure to the benefit of Indemnitee,
         his heirs, personal representatives, and assigns, and to the benefit of
         the Corporation, its successors and assigns.

                  (c) No amendment, modification, termination, or cancellation
         of this Agreement shall be effective unless in writing signed by the
         Corporation and Indemnitee.

                  (d) This agreement shall be construed liberally in favor of
         the Indemnitee to the fullest extent possible under Nevada law. In the
         event Nevada law is changed after the date of this Agreement, through
         statutory amendment, judicial interpretation, administrative
         regulations or otherwise, to allow additional indemnification or to
         remove or restrict current limitations on indemnification, this
         Agreement shall be deemed to be amended and reformed to provide the
         fullest indemnification then possible.

         17. Mutual Acknowledgement. Both the Corporation and Indemnitee
acknowledge that in certain instances, federal law or applicable public policy
may prohibit the Corporation from indemnifying its directors and officers under
this Agreement or otherwise. Indemnitee understands and acknowledges that the
Corporation has undertaken, or may be required in the future to undertake with
the Securities and Exchange Commission, to submit the question of
indemnification to a court in certain circumstances for a determination of the
Corporation's right under public policy to indemnify Indemnitee.

         18. Severability. If any provision of this Agreement shall be held to
be invalid, illegal, or unenforceable:

                  (a) the validity, legality, and enforceability of the
         remaining provisions of this Agreement shall not be in any way affected
         or impaired thereby; and

                                      -6-
<PAGE>

                  (b) to the fullest extent possible, the provisions of this
         Agreement shall be construed so as to give effect to the intent
         manifested by the provision held invalid, illegal, or unenforceable.

Each section of this Agreement is a separate and independent portion of this
Agreement. If the indemnification to which Indemnitee is entitled as respects
any aspect of any claim varies between two or more sections of this Agreement,
that section providing the most comprehensive indemnification shall apply.

         19. Notice. Any notice, demand, request or other communication
permitted or required under this Agreement shall be in writing and shall be
deemed to have been given as of the date so delivered, if personally served; as
of the date so sent, if transmitted by facsimile and receipt is confirmed by the
facsimile operator of the recipient; as of the date so sent, if sent by
electronic mail and receipt is acknowledged by the recipient; one day after the
date so sent, if delivered by overnight courier service; or three days after the
date so mailed, if mailed by certified mail, return receipt requested, addressed
as follows:

         If to the Corporation:     FX Energy, Inc.
                                    3006 Highland Drive, Suite 206
                                    Salt Lake City  UT  84106
                                    Facsimile: (801) 486-5575
                                    E-mail: ________________________

         If to Indemnitee, to:      ________________________________
                                    ________________________________
                                    ________________________________
                                    Facsimile: (801) _______________
                                    E-mail: ________________________

or such other addresses, facsimile numbers, or electronic mail address as shall
be furnished in writing by any party in the manner for giving notices hereunder.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement to
be effective on and as of the day and year first above written.

                                  Corporation:

                                                 FX ENERGY, INC.

                                                 By: __________________________
                                                     _______________, President

                                   Indemnitee:

                                                     ___________________________
                                                     [Individual Name]

                                      -7-
<PAGE>

                                    SCHEDULE

David N. Pierce
Thomas B. Lovejoy
Jerzy B. Maciolek
Scott J. Duncan
Dennis B. Goldstein
David W. Worrell
Richard Hardman
Arnold S. Grundvig, Jr.
Clay Newton

                                      -8-

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