regarding cooperation within the Poznan Area
Entered into this 8th day of January 2003, by and between
1) Polskie Gornictwo Naftowe i Gazownictwo S.A., having its seat in Warsaw at ul. Krucza 6/14 ("POGC");
2) FX Energy Poland Sp. z o.o. having its seat in Warsaw at Al. Jana Pawla II 29 ("FX")
hereinafter jointly called the "Parties" and each of them individually a "Party";
3) FX Energy Inc. having its seat in Salt Lake City, Utah, USA at Highland Drive No. 3006 suite 206 ("FX
USA"), acting as a surety for FX's obligations arising from this Agreement.
A) The Parties hereto have reached an agreement on all issues regarding conducting of their joint operations
within the Fences area that were subject of discussions between the Parties and have concluded by signing the
Settlement Agreement regarding the Fences area on this day.
B) The Parties desire to conduct joint operations within an additional area described in detail in Appendix 1
(the ,,Poznan" area), on the similar principles as within the Fences area;
C) The Parties desire to set forth the basic principles for their cooperation within the Poznan area.
Therefore, the Parties hereby have agreed as follows:
Article 1 Basic Parties' obligations and transaction documents
1.1 Subject as stated below, the Parties' initial interests in all rights and obligations within the Poznan area shall be
- 51% POGC
- 49% FX
1.2 In exchange for the information and knowledge obtained by POGC as a result of geological work conducted
within the Poznan area (either solely or jointly with other parties), FX commits to finance 100% costs of joint
exploration operations until the sum of such costs reach USD 4 million. The USD 4 million shall be spent by FX
by December 31, 2004, in accordance with work programs and budgets approved pursuant to the Poznan JOA
(defined below). The above commitment is in addition to and independent from FX commitments resulting from
the Settlement Agreeme