Document:

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE  BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION ("SEC") OR THE
SECURITIES  COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER  THE  SECURITIES  ACT  OF  1933, AS AMENDED (THE "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY  NOT  BE  OFFERED  OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER  THE  SECURITIES ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION  FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS  OF  THE  SECURITIES  ACT  AND  IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES  LAWS  AS  EVIDENCED  BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
REASONABLY  ACCEPTABLE  TO  THE  COMPANY.

                          COMMON STOCK PURCHASE WARRANT

                  To Purchase 191,250 Shares of Common Stock of

                          Houston American Energy Corp.

     THIS COMMON STOCK PURCHASE WARRANT (the "Warrant") CERTIFIES that, for
value received, Northeast Securities, Inc. (the "Holder"), is entitled, upon the
terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after May 4, 2005 (the "Initial Exercise Date") and
on or prior to the close of business on the third anniversary of the Initial
Exercise Date (the "Termination Date") but not thereafter, to subscribe for and
purchase from Houston American Energy Corp., a corporation incorporated in the
State of Delaware (the "Company"), up to 191,250 shares (the "Warrant Shares")
of Common Stock, par value $0.001 per share, of the Company (the "Common
Stock"). The purchase price of one share of Common Stock (the "Exercise Price")
under this Warrant shall be $1.00 subject to adjustment hereunder. The Exercise
Price and the number of Warrant Shares for which the Warrant is exercisable
shall be subject to adjustment as provided herein.

     1. Title to Warrant. Prior to the Termination Date and subject to
        ----------------
compliance with applicable laws and Section 7 of this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, at the office or
agency of the Company by the Holder in person or by duly authorized attorney,
upon surrender of this Warrant together with the Assignment Form annexed hereto
properly endorsed. The transferee shall sign an investment letter in form and
substance reasonably satisfactory to the Company.

     2. Authorization of Shares. The Company covenants that all Warrant Shares
        -----------------------
which may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant,
be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges in respect of the issue thereof (other than taxes
in respect of any transfer occurring contemporaneously with such issue).

     3. Exercise of Warrant.
        -------------------

          (a) Exercise of the purchase rights represented by this Warrant may be
made at any time or times on or after the Initial Exercise Date and on or before
the Termination Date by delivery to the Company of a duly executed facsimile
copy of the Notice of Exercise Form

<PAGE>
annexed hereto (or such other office or agency of the Company as it may
designate by notice in writing to the registered Holder at the address of such
Holder appearing on the books of the Company); provided, however, within 5
trading days of the date said Notice of Exercise is delivered to the Company,
the Holder shall have surrendered this Warrant to the Company and the Company
shall have received payment of the aggregate Exercise Price of the shares
thereby purchased by wire transfer or cashier's check drawn on a United States
bank. Certificates for shares purchased hereunder shall be delivered to the
Holder within 10 trading days from the delivery to the Company of the Notice of
Exercise Form by facsimile copy, surrender of this Warrant and payment of the
aggregate Exercise Price as set forth above.

          (b) If this Warrant shall have been exercised in part, the Company
shall, at the time of delivery of the certificate or certificates representing
Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder
to purchase the unpurchased Warrant Shares called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant.

     4. No Fractional Shares or Scrip. No fractional shares or scrip
        -----------------------------
representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share that Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

     5. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares
        ---------------------------
shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by the Holder; provided, however, that in the event certificates for
Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

     6. Closing of Books. The Company will not close its stockholder books or
        ----------------
records in any manner that prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     7. Transfer, Division and Combination.
        ----------------------------------

          (a) Subject to compliance with any applicable securities laws and the
conditions set forth in Sections 1 and 7(e) hereof, this Warrant and all rights
hereunder are transferable, in whole or in part, upon surrender of this Warrant
at the principal office of the Company, together with a written assignment of
this Warrant substantially in the form attached hereto duly executed by the
Holder or its agent or attorney and funds sufficient to pay any transfer taxes
payable upon the making of such transfer. Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in
the name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued.

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<PAGE>
          (b) This Warrant may be divided or combined with other Warrants upon
presentation hereof at the aforesaid office of the Company, together with a
written notice specifying the names and denominations in which new Warrants are
to be issued, signed by the Holder or its agent or attorney. Subject to
compliance with Section 7(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or combined in
accordance with such notice.

          (c) The Company shall prepare, issue and deliver at its own expense
(other than transfer taxes) the new Warrant or Warrants under this Section 7.

          (d) The Company agrees to maintain, at its aforesaid office, books for
the registration and the registration of transfer of the Warrants. The Holder
may change its address as shown on the registration by written notice to the
Company requesting such change.

          (e) If, at the time of the surrender of this Warrant in connection
with any transfer of this Warrant, the transfer of this Warrant shall not be
registered pursuant to an effective registration statement under the Securities
Act and under applicable state securities or blue sky laws, the Company may
require, as a condition of allowing such transfer (i) that the Holder or
transferee of this Warrant, as the case may be, furnish to the Company a written
opinion of counsel (which opinion shall be in form, substance and scope
customary for opinions of counsel in comparable transactions and reasonably
acceptable to the Company) to the effect that such transfer may be made without
registration under the Securities Act and under applicable state securities or
blue sky laws, (ii) that the holder or transferee execute and deliver to the
Company an investment letter in form and substance acceptable to the Company and
(iii) that the transferee be an "accredited investor" as defined in Rule 501(a)
promulgated under the Securities Act.  Notwithstanding anything herein to the
contrary, the Holder shall have the absolute and unconditional right to assign
this Warrant, in part or in whole, to is officer, directors and employees.

     8. Supplying Information.  The Company shall cooperate with each Holder of
        ---------------------
a Warrant and each holder of restricted Common Stock issued upon exercise
thereof in supplying such information as may be reasonably necessary for such
holder to complete and file any information reporting forms presently or
hereafter required by the SEC and other regulatory authorities as a condition to
the availability of an exemption from the Securities Act for the sale of any
Warrant or Warrant Shares

     9. Limitation of Liability.  No provision hereof, in the absence of
        -----------------------
affirmative action by Holder to purchase shares of Common Stock, and no
enumeration herein of the rights or privileges of Holder hereof, shall give rise
to any liability of such Holder for the purchase price of any Common Stock or as
a stockholder of Company, whether such liability is asserted by Company or by
creditors of Company.

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<PAGE>
     10. No Rights as Shareholder until Exercise. This Warrant does not entitle
         ---------------------------------------
the Holder to any voting rights or other rights as a shareholder of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the payment
of the aggregate Exercise Price (or by means of a cashless exercise), the
Warrant Shares so purchased shall be and be deemed to be issued to such Holder
as the record owner of such shares as of the close of business on the later of
the date of such surrender or payment.

     11. Piggyback Registration Rights.
         -----------------------------

          (a)  The Company covenants and agrees with any holder of the Warrants
or Warrant Shares (the "Registrable Securities") that if, at any time within the
period commencing on the Initial Exercise Date and ending on the Termination
Date, it proposes to file a registration statement with respect to any class of
equity or equity-related security (other than in connection with an offering to
the Company's employees or in connection with an acquisition, merger or similar
transaction) under the Securities Act in a primary registration on behalf of the
Company and/or in a secondary registration on behalf of holders of such
securities and the registration form to be used may be used for registration of
the Registrable Securities, the Company will give prompt written notice (which,
in the case of a registration statement pursuant to the exercise of demand
registration rights shall be within ten (10) business days after the Company's
receipt of notice of such exercise and, in any event, shall be at least 30 days
prior to such filing) to the holders of Registrable Securities at the addresses
appearing on the records of the Company of its intention to file a registration
statement and will offer to include in such registration statement all, but not
less than 20% of the Registrable Securities, subject to paragraphs (i) and (ii)
of this Section 11(a), such number of Registrable Securities with respect to
which the Company has received written requests for inclusion therein within ten
(10) days after the giving of notice by the Company.  All registrations
requested pursuant to this Section 11(a) are referred to herein as "Piggyback
Registrations".  All Piggyback Registrations pursuant to this Section 11 will be
made solely at the Company's expense.  This Section is not applicable to a
registration statement filed by the Company on Forms S-4 or S-8 or any successor
forms.

               (i)  Priority on Primary Registrations.  If a Piggyback
                    ---------------------------------
     Registration includes an underwritten primary registration on behalf of the
     Company and the underwriter(s) for such offering determines in good faith
     and advises the Company in writing that in its/their opinion the number of
     Registrable Securities requested to be included in such registration
     exceeds the number that can be sold in such offering without materially
     adversely affecting the distribution of such securities by the Company, the
     Company will include in such registration (A) first, the securities that
     the Company proposes to sell and (B) second, the Registrable Securities
     requested to be included in such registration, apportioned pro rata among
     the holders of the Registrable Securities and holders of other securities
     requesting registration.

               (ii)  Priority on Secondary Registrations.  If a Piggyback
                     -----------------------------------
     Registration consists only of an underwritten secondary registration on
     behalf of holders of securities of the Company, and the underwriter(s) for
     such offering advises the Company in writing that in its/their opinion the
     number of Registrable Securities requested to be included in such
     registration exceeds the number which can be sold in such offering without
     materially adversely affecting the distribution of such securities, the
     Company will include in such registration (A) first, the securities
     requested to be included therein by the

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<PAGE>
     holders requesting such registration, and (B) second, the Registrable
     Securities requested to be included in such registration and securities of
     holder of other securities requested to be included in such registration
     statement, pro rata among all such holders on the basis of the number of
     shares requested to be included by each such holder, provided, however, the
     Company will use its best efforts to include not less than 20% of the
     Registrable Securities.

Notwithstanding the foregoing, if any such underwriter shall determine in good
faith and advise the Company in writing that the distribution of the Registrable
Securities requested to be included in the registration concurrently with the
securities being registered by the Company would materially adversely affect the
distribution of such securities by the Company, then the holders of such
Registrable Securities shall delay their offering and sale for such period
ending on the earliest of (1) 90 days following the effective date of the
Company's registration statement, (2) the day upon which the underwriting
syndicate, if any, for such offering shall have been disbanded or, (3) such date
as the Company, managing underwriter and holders of Registrable Securities shall
otherwise agree.  In the event of such delay, the Company shall file such
supplements, post-effective amendments and take any such other steps as may be
necessary to permit such holders to make their proposed offering and sale for a
period of 120 days immediately following the end of any such period of delay.
If any party disapproves the terms of any such underwriting, it may elect to
withdraw therefrom by written notice to the Company, the underwriter, and the
holder.  Notwithstanding the foregoing, the Company shall not be required to
file a registration statement to include shares pursuant to this Section 11 if
independent counsel, reasonably satisfactory to the Company, renders an opinion
to the Company that the Registrable Securities proposed to be disposed of may be
transferred pursuant to the provisions of Rule 144 under the Securities Act or
otherwise without registration under the Securities Act.

          (b) In connection with the registration of Registrable Securities
hereunder, the Company agrees to (i) bear the expenses of any registration;
provided, however, that in no event shall the Company be obligated to pay (A)
any fees and disbursements of special counsel for holders of Registrable
Securities, (B) any underwriters' discount or commission in respect of such
Registrable Securities, and (C) any stock transfer taxes attributable to the
sale of the Registrable Securities; (ii) use its best efforts to register or
qualify the Registrable Securities for offer or sale under state securities or
Blue Sky laws of such jurisdictions in which such holders shall reasonably
request, provided, however, that no qualification shall be required in any
jurisdiction where, as a result thereof, the Company would be subject to service
of general process or to taxation as a foreign corporation doing business in
such jurisdiction to which it is not then subject; and (iii) enter into a
cross-indemnity agreement, in customary form, with each underwriter, if any, and
each holder of securities included in such registration statement.

          (c) The Company's obligations under this Section 11 shall be
conditioned upon a timely receipt by the Company in writing of: (i) information
as to the terms of such public offering furnished by or on behalf of each holder
of Registrable Securities intending to make a public offering of his, her or its
Registrable Securities, and (ii) such other information as the Company may
reasonably require from such holders, or any underwriter for any of them, for
inclusion in such registration statement.

                                        5
<PAGE>
     12. Loss, Theft, Destruction or Mutilation of Warrant. The Company
         -------------------------------------------------
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which, in
the case of the Warrant, shall not include the posting of any bond), and upon
surrender and cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock
certificate.

     13. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
         ---------------------------------
taking of any action or the expiration of any right required or granted herein
shall be a Saturday, Sunday or a legal holiday, then such action may be taken or
such right may be exercised on the next succeeding day not a Saturday, Sunday or
legal holiday.

     14. Stock Splits. The number and kind of securities purchasable upon the
         ------------
exercise of this Warrant and the Exercise Price shall be subject to adjustment
from time to time upon the happening of any of the following. In case the
Company shall (i) pay a dividend in shares of Common Stock or make a
distribution in shares of Common Stock to holders of its outstanding Common
Stock, (ii) subdivide its outstanding shares of Common Stock into a greater
number of shares, (iii) combine its outstanding shares of Common Stock into a
smaller number of shares of Common Stock, or (iv) issue any shares of its
capital stock in a reclassification of the Common Stock, then the number of
Warrant Shares purchasable upon exercise of this Warrant immediately prior
thereto shall be adjusted so that the Holder shall be entitled to receive the
kind and number of Warrant Shares or other securities of the Company which it
would have owned or have been entitled to receive had such Warrant been
exercised in advance thereof. Upon each such adjustment of the kind and number
of Warrant Shares or other securities of the Company which are purchasable
hereunder, the Holder shall thereafter be entitled to purchase the number of
Warrant Shares or other securities resulting from such adjustment at an Exercise
Price per Warrant Share or other security obtained by multiplying the Exercise
Price in effect immediately prior to such adjustment by the number of Warrant
Shares purchasable pursuant hereto immediately prior to such adjustment and
dividing by the number of Warrant Shares or other securities of the Company
resulting from such adjustment. An adjustment made pursuant to this paragraph
shall become effective immediately after the effective date of such event
retroactive to the record date, if any, for such event.

     15.  Certain Other Distributions.  If at any time Company shall declare,
          ---------------------------
order, pay or make a dividend or other distribution on its Common Stock payable
in securities of the Company (other than dividends or distributions of shares of
Common Stock which are referred to in Section 14) or payable in cash or other
property (other than cash out of earnings or earned surplus, determined in
accordance with generally accepted accounting principles), then and in each such
event provision shall be made so that the registered Holder shall receive upon
exercise hereof, in addition to the number of shares of Common Stock issuable
hereunder, the kind and amount of securities of the Company and/or cash and
other property which the registered Holder would have been entitled to receive
had this Warrant been exercised for Common Stock on the date of such event and
had the registered Holder thereafter, during the period from the date of such
event to and including the Initial Exercise Date,  retained any such securities
receivable, giving application to all adjustments called for during such period
under this Section 15 with respect to the rights of the registered Holder.

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<PAGE>
     16.  Additional Issuances.
          --------------------

          (a) Issuances of Additional Common Stock. If at any time Company shall
              -------------------------------------
issue or sell any Additional Shares of Common Stock in exchange for
consideration in an amount per Additional Share of Common Stock less than the
Current Warrant Price at the time the Additional Shares of Common Stock are
issued, then the Current Warrant Price as to the number of shares for which this
Warrant is exercisable prior to such adjustment shall be reduced to a price
determined by dividing (A) an amount equal to the sum of (x) the number of
shares of Common Stock outstanding immediately prior to such issue or sale
multiplied by the then existing Current Warrant Price, plus (y) the
consideration, if any, received by Company upon such issue or sale, by (B) the
total number of shares of Common Stock outstanding immediately after such issue
or sale; provided that, (x) for the purpose of this Section 16, all shares of
         -------------
Common Stock issuable upon exercise, conversion or exchange of Convertible
Securities outstanding immediately prior to such issue shall be deemed to be
outstanding, and (y) the number of shares of Common Stock deemed outstanding
pursuant to clause (x) above upon exercise, conversion or exchange of such
outstanding Convertible Securities shall not give effect to any adjustments to
the exercise, conversion or exchange price or exercise, conversion or exchange
rate of such Convertible Securities resulting from the issuance of Additional
Shares of Common Stock that is the subject of this calculation.

          (b)  Issuances of Warrants of Other Rights. If at any time Company
               --------------------------------------
shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive a distribution of, or shall in any manner (whether
directly or by assumption in a merger in which Company is the surviving
corporation) issue or sell, any warrants or other rights to subscribe for or
purchase any Additional Shares of Common Stock or any Convertible Securities
(other than Permitted Issuances), whether or not the rights to exchange or
convert thereunder are immediately exercisable, and the price per share for
which Common Stock is issuable upon the exercise of such warrants or other
rights or upon conversion or exchange of such Convertible Securities shall be
less than the Current Warrant Price in effect immediately prior to the time of
such record, issue or sale, then the Current Warrant Price shall be adjusted as
provided in Section 16(a) on the basis that the maximum number of Additional
Shares of Common Stock issuable pursuant to all such warrants or other rights or
necessary to effect the conversion or exchange of all such Convertible
Securities shall be deemed to have been issued and outstanding and Company shall
have received all of the consideration payable therefor, if any, as of the date
of the issuance of such warrants or other rights.

          (c)  Issuances of Convertible Securities.  If at any time Company
               -----------------------------------
shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive a distribution of, or shall in any manner (whether
directly or by assumption in a merger in which Company is the surviving
corporation) issue or sell, any Convertible Securities, whether or not the
rights to exchange or convert thereunder are immediately exercisable, and the
price per share for which Common Stock is issuable upon such conversion or
exchange shall be less than the Current Warrant Price in effect immediately
prior to the time of such record, issue or sale, then the Current Warrant Price
shall be adjusted as provided in Section 16(a) on the basis that the maximum
number of Additional Shares of Common Stock necessary to effect the conversion
or exchange of all such Convertible Securities shall be deemed to have been
issued and outstanding and Company shall have received all of the consideration
payable therefor, if any, as of the date

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<PAGE>
of issuance of such Convertible Securities. No adjustment of the Current Warrant
Price shall be made under this Section 16(c) upon the issuance of any
Convertible Securities which are issued pursuant to the exercise of any warrants
or other subscription or purchase rights therefor, if any such adjustment shall
previously have been made upon the issuance of such warrants or other rights
pursuant to Section 16(b). If any issue or sale of Convertible Securities is
made upon exercise of any warrant or other right to subscribe for or to purchase
any such Convertible Securities for which adjustments of the Current Warrant
Price have been or are to be made pursuant to Section 16(b), no further
adjustments of the Current Warrant Price shall be made by reason of such record,
issue or sale.

     17. Reorganization, Reclassification, Merger, Consolidation or Disposition
         ----------------------------------------------------------------------
of Assets. In case the Company shall reorganize its capital, reclassify its
---------
capital stock, consolidate or merge with or into another corporation (where the
Company is not the surviving corporation or where there is a change in or
distribution with respect to the Common Stock of the Company), or sell, transfer
or otherwise dispose of its property, assets or business to another corporation
and, pursuant to the terms of such reorganization, reclassification, merger,
consolidation or disposition of assets, shares of common stock of the successor
or acquiring corporation, or any cash, shares of stock or other securities or
property of any nature whatsoever (including warrants or other subscription or
purchase rights) in addition to or in lieu of common stock of the successor or
acquiring corporation ("Other Property"), are to be received by or distributed
to the holders of Common Stock of the Company, then the Holder shall have the
right thereafter to receive, at the option of the Holder, (a) upon exercise of
this Warrant, the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and Other
Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) cash equal to the value of this Warrant
as determined in accordance with the Black Scholes option pricing formula. In
case of any such reorganization, reclassification, merger, consolidation or
disposition of assets, the successor or acquiring corporation (if other than the
Company) shall expressly assume the due and punctual observance and performance
of each and every covenant and condition of this Warrant to be performed and
observed by the Company and all the obligations and liabilities hereunder,
subject to such modifications as may be deemed appropriate (as determined in
good faith by resolution of the Board of Directors of the Company) in order to
provide for adjustments of Warrant Shares for which this Warrant is exercisable
which shall be as nearly equivalent as practicable to the adjustments provided
for in this Section 17. For purposes of this Section 17, "common stock of the
successor or acquiring corporation" shall include stock of such corporation of
any class which is not preferred as to dividends or assets over any other class
of stock of such corporation and which is not subject to redemption and shall
also include any evidences of indebtedness, shares of stock or other securities
which are convertible into or exchangeable for any such stock, either
immediately or upon the arrival of a specified date or the happening of a
specified event and any warrants or other rights to subscribe for or purchase
any such stock. The foregoing provisions of this Section 17 shall similarly
apply to successive reorganizations, reclassifications, mergers, consolidations
or disposition of assets.

     18. Voluntary Adjustment by the Company. The Company may at any time during
         -----------------------------------
the term of this Warrant reduce the then current Exercise Price to any amount
and for any period of time deemed appropriate by the Board of Directors of the
Company.

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<PAGE>
     19. Notice of Adjustment. Whenever the number of Warrant Shares or number
         --------------------
or kind of securities or other property purchasable upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
give notice thereof to the Holder, which notice shall state the number of
Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other
securities or property) after such adjustment, setting forth a brief statement
of the facts requiring such adjustment and setting forth the computation by
which such adjustment was made.

     20. Authorized Shares. The Company covenants that during the period the
         -----------------
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such
Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the trading market upon
which the Common Stock may be listed.

     21. Miscellaneous.
         -------------

          (a) Certain Defined Terms.
              ---------------------

          "Additional Shares of Common Stock" means shares of Common Stock
           ---------------------------------
issued by Company after the date of this Warrant other than Permitted Issuances
(as defined below)

          "Convertible Securities" means any option, warrant or share of
           ----------------------
preferred stock of Company or any other security, in any case, which is
convertible into or exercisable or exchangeable for Additional Shares of Common
Stock, either immediately or upon the occurrence of a specified date or a
specified event.

          "Current Warrant Price" means, in respect of a share of Common Stock
           ---------------------
on any date herein specified, the price at which a share of Common Stock may be
purchased pursuant to this Warrant on such date.

          "Permitted Issuances" means shares of Common Stock issued or issuable
           -------------------
upon conversion, exchange, or exercise of any Convertible Securities outstanding
on the issue date of this Warrant.

          (b) Jurisdiction. All questions concerning the construction, validity,
              ------------
enforcement and interpretation of this Warrant shall be determined in accordance
with the substantive laws of the State of Texas without giving effect to any
choice or conflict of law provision or rule.  Any legal action or proceeding
with respect to this Warrant may be brought in the courts of the State of Texas
and the United States of America located in the City of Houston, Texas, U.S.A.
and, by execution and/or acceptance of this Warrant, the parties hereto accept
the jurisdiction of the aforesaid courts and irrevocably waive any objection,
including, without limitation, any objection to the venue or based on the
grounds of forum non conveniens, which it

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<PAGE>
may now or hereafter have to the bringing of any such action or proceeding in
such respective jurisdictions.

          (c) Restrictions. The Holder acknowledges that the Warrant Shares
              ------------
acquired upon the exercise of this Warrant, if not registered, will have
restrictions upon resale imposed by state and federal securities laws.

          (d) Nonwaiver and Expenses. No course of dealing or any delay or
              ----------------------
failure to exercise any right hereunder on the part of Holder shall operate as a
waiver of such right or otherwise prejudice Holder's rights, powers or remedies,
notwithstanding all rights hereunder terminate on the Termination Date. If the
Company willfully and knowingly fails to comply with any provision of this
Warrant, which results in any material damages to the Holder, the Company shall
pay to Holder such amounts as shall be sufficient to cover any costs and
expenses including, but not limited to, reasonable attorneys' fees, including
those of appellate proceedings, incurred by Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

          (e) Notices. All notices, demands and requests of any kind to be
              -------
delivered to any party in connection with this Warrant shall be in writing and
shall be deemed to have been duly given if personally delivered or if sent by
internationally-recognized overnight courier or by registered or certified mail,
return receipt requested and postage prepaid, addressed as follows:

          if to the Company, to:    Houston American Energy Corp.
                                    801 Travis, Suite 2020
                                    Houston, Texas 77002
                                    Attn:  President

          if to the Holder, to:     the address of the Holder(s) appearing
                                    in the Company's records from time to time

or to such other address as the party to whom notice is to be given may have
furnished to the other parties to this Warrant in writing in accordance with the
provisions of this Section 21(e).  Any such notice or communication shall be
deemed to have been received (i) in the case of personal delivery, on the date
of such delivery, (ii) in the case of internationally-recognized overnight
courier, on the next business day after the date when sent, and (iii) in the
case of mailing, on the third business day following that on which the piece of
mail containing such communication is posted.

          (f) Limitation of Liability. No provision hereof, in the absence of
              -----------------------
any affirmative action by Holder to exercise this Warrant or purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

                                       10
<PAGE>
          (g) Remedies. The Holder, in addition to being entitled to exercise
              --------
all rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Warrant. The Company agrees that
monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of the provisions of this Warrant and hereby agrees to
waive the defense in any action for specific performance that a remedy at law
would be adequate.

          (h) Successors and Assigns. Subject to applicable securities laws,
              ----------------------
this Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares.

          (i) Amendment. This Warrant may be modified or amended or the
              ---------
provisions hereof waived with the written consent of the Company and the Holder.

          (j) Severability. Wherever possible, each provision of this Warrant
              ------------
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

          (k) Headings. The headings used in this Warrant are for the
              --------
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated:  May ___, 2005

                                             Houston American Energy Corp.

                                             By: ________________________
                                             Name: John Terwilliger
                                             Title:  President

                                       11
<PAGE>
                               NOTICE OF EXERCISE

To:  Houston American Energy Corp.

     (1)     The undersigned hereby elects to purchase ________ Warrant Shares
of Houston American Energy Corp. pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

     (2)     Payment shall take the form of (check applicable box):

             [_]     cashier's check (enclosed herewith); or

             [_]     wire transfer.

     (3)     Please issue a certificate or certificates representing said
Warrant Shares in the name of the undersigned or in such other name as is
specified below:

             _________________________________________________

The Warrant Shares shall be delivered to the following:

             _________________________________________________

             _________________________________________________

             _________________________________________________

     (4)     Accredited Investor. The undersigned is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

                                        [PURCHASER]

                                        By: _______________________
                                        Name:
                                        Title:

                                        Dated:  ___________________

                                       12
<PAGE>
                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

     FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to _____________________________________ whose address is
____________________________________________.

Dated: ______________, _______

                         Holder's Signature:  _____________________________

                         Holder's Address:    _____________________________

                                              _____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

                                       13REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made by and
between HOUSTON AMERICAN ENERGY CORP., a Delaware corporation (the "Company"),
and the undersigned (the "Investor") effective as of the date this Agreement is
accepted by the Company.

     This Agreement is being entered into pursuant to the Purchase Agreement,
dated as of the date hereof between the Company and the Investor (the "Purchase
Agreement").

     The Company and the Investor hereby agree as follows:

     1.     Definitions. Capitalized terms used and not otherwise defined herein
            -----------
shall have the meanings given such terms in the Purchase Agreement or the
Memorandum, as the case may be.  As used in this Agreement, the following terms
shall have the following meanings:

           "Advice" shall have meaning set forth in Section 3(m).
            ------                                  ------------

          "Affiliate" means, with respect to any Person, any other Person that
           ---------
directly or indirectly controls or is controlled by or under common control with
such Person.  For the purposes of this definition, "control," when used with
                                                    --------
respect to any Person, means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise;
and the terms of "affiliated," "controlling" and "controlled" have meanings
                  -----------   -----------       ----------
correlative to the foregoing.

          "Board" shall have meaning set forth in Section 3(n).
           -----                                  ------------

          "Business Day" means any day except Saturday, Sunday and any day which
           ------------
shall be a legal holiday or a day on which banking institutions in the State of
Texas generally are authorized or required by law or other government actions to
close.

          "Closing Date" means the date of the closing of the Purchase
           ------------
Agreement.

          "Commission" means the Securities and Exchange Commission.
           ----------

          "Common Stock" means the Company's common stock, $.001 par value per
           ------------
share.

          "Effectiveness Period" shall have the meaning set forth in Section 2.
           --------------------                                      ---------

          "Exchange Act" means the Securities Exchange Act of 1934, as amended.
           ------------

          "Filing Date" means the 90th day following the Closing Date.
           -----------

                                        1
<PAGE>
          "Holder" or "Holders" means the holder or holders, as the case may be,
           ------      -------
from time to time of Registrable Securities pursuant to this Agreement or any
other similar agreement between the Company and such holder.

          "Indemnified Party" shall have the meaning set forth in Section 5(c).
           -----------------                                      ------------

          "Indemnifying Party" shall have the meaning set forth in Section 5(c).
           ------------------                                      ------------

          "Losses" shall have the meaning set forth in Section 5(a).
           ------                                      ------------

          "Memorandum" means the Company's Confidential Private Placement
           ----------
Memorandum dated April 20, 2005 with respect to the offer and sale of up to
$2,500,000 of Notes.

          "Notes" means the 8% Subordinated Convertible Promissory Notes due
           -----
2010 offered by the Company pursuant to the terms of the Memorandum and the
Purchase Agreement.

          "Note Shares" means the shares of Common Stock issuable upon
           -----------
conversion of the Notes.

          "Person" means an individual or a corporation, partnership, trust,
           ------
incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind.

          "Proceeding" means an action, claim, suit, investigation or proceeding
           ----------
(including, without limitation, an investigation or partial proceeding, such as
a deposition), whether commenced or threatened.

          "Prospectus" means the prospectus included in the Registration
           ----------
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference in such Prospectus.

          "Registrable Securities" means (i) the Notes, (ii) the Note Shares,
           ----------------------
(iii) any shares of Common Stock issuable upon the exercise of Warrants issued
to any broker-dealer or finder as compensation in connection with the financing
that is the subject of the Purchase Agreement, and (iv) any securities issued or
issuable with respect to such securities by way of a stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization with respect to any of the securities
referenced above.

                                        2
<PAGE>
          "Registration Statement" means the registration statements and any
           ----------------------
additional registration statements contemplated by Section 2 and Section 7(c),
                                                   ---------     ------------
including (in each case) the Prospectus, amendments and supplements to such
registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto, and all material incorporated by reference in
such registration statement.

          "Rule 144" means Rule 144 promulgated by the Commission pursuant to
           --------
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

          "Rule 158" means Rule 158 promulgated by the Commission pursuant to
           --------
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

          "Rule 415" means Rule 415 promulgated by the Commission pursuant to
           --------
the Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

          "Securities Act" means the Securities Act of 1933, as amended.
           --------------

          "Warrants" means the Common Stock purchase warrant issued or issuable
           --------
to Northeast Securities, Inc. pursuant to an engagement letter with the Company.

          "Warrant Shares" means the shares of Common Stock issued or issuable
           --------------
upon exercise of the Warrants.

     2.    Mandatory Registration. On or before the Filing Date, the Company
           ----------------------
shall prepare and file with the Commission a Registration Statement covering all
Registrable Securities for an offering to be made on a continuous basis pursuant
to Rule 415.  The Registration Statement shall be on Form S-3 (except if the
Company is not then eligible to register for resale the Registrable Securities
on Form S-3, in which case such registration shall be on another appropriate
form).  The Company shall use its best efforts to cause the Registration
Statement to be declared effective under the Securities Act within 180 days
following the Closing Date or as promptly as possible after the filing thereof
and to keep such Registration Statement continuously effective under the
Securities Act until such date as is the earlier of (i) the date when all
Registrable Securities covered by such Registration Statement have been sold in
accordance with such Registration Statement or (ii) the date when all of the
Registrable Securities have been sold pursuant to Rule 144 or (iii) the date on
which the Registrable Securities are eligible to be sold without any restriction
pursuant to Rule 144(k) or (iv) the date when all of the Registrable Securities
cease to be outstanding provided that any and all Warrant Shares have been sold
pursuant to Section 2(i) or (ii) above or may be resold pursuant to Section
2(iii) above (the "Effectiveness Period").
                   --------------------

                                        3
<PAGE>
     3.     Registration Procedures. In connection with the Company's
            -----------------------
registration obligations hereunder, the Company shall:

          (a)     Prepare and file with the Commission on or prior to the Filing
Date, a Registration Statement on Form S-3 (or if the Company is not then
eligible to register for resale the Registrable Securities on Form S-3 such
registration shall be on another appropriate form) in accordance with the method
or methods of distribution thereof as specified by the Holders, and use its best
efforts to cause the Registration Statement to become effective and remain
effective as provided herein; provided, however, that not less than three (3)
                              --------  -------
Business Days prior to the filing of the Registration Statement or any related
Prospectus or any amendment or supplement thereto (including any document that
would be incorporated therein by reference), the Company shall (i) furnish to
the Holders copies of all such documents proposed to be filed, which documents
(other than those incorporated by reference) will be subject to the review of
such Holders, and (ii) cause its officers and directors, counsel and independent
certified public accountants to respond to such inquiries as shall be necessary,
in the reasonable opinion of counsel to such Holders, to conduct a reasonable
investigation within the meaning of the Securities Act.  The Company shall not
file the Registration Statement or any such Prospectus or any amendments or
supplements thereto to which the Holders of a majority of the Registrable
Securities shall reasonably object in writing within two (2) Business Days of
their receipt thereof.

          (b)     (i) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement as may be
necessary to keep the Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and
file with the Commission such additional Registration Statements in order to
register for resale under the Securities Act all of the Registrable Securities;
(ii) cause the related Prospectus to be amended or supplemented by any required
Prospectus supplement, and as so supplemented or amended to be filed pursuant to
Rule 424 (or any similar provisions then in force) promulgated under the
Securities Act; (iii) respond as promptly as possible to any comments received
from the Commission with respect to the Registration Statement or any amendment
thereto and as promptly as possible provide the Holders true and complete copies
of all correspondence from and to the Commission relating to the Registration
Statement; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all
Registrable Securities covered by the Registration Statement during the
applicable period in accordance with the intended methods of disposition by the
Holders thereof set forth in the Registration Statement as so amended or in such
Prospectus as so supplemented.

          (c)     Notify the Holders of Registrable Securities to be sold as
promptly as possible (and, in the case of (i)(A) below, not less than three (3)
days prior to such filing) and (if requested by any such Person) confirm such
notice in writing no later than one (1) Business Day following the day (i)(A)
when a Prospectus or any Prospectus supplement or post-effective amendment to
the Registration Statement is proposed to be filed; (B) when the Commission
notifies the Company whether there will be a "review" of such Registration
Statement and whenever the Commission comments in writing on such Registration
Statement and (C) with respect to the Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other federal or state

                                        4
<PAGE>
governmental authority for amendments or supplements to the Registration
Statement or Prospectus or for additional information; (iii) of the issuance by
the Commission of any stop order suspending the effectiveness of the
Registration Statement covering any or all of the Registrable Securities or the
initiation of any Proceedings for that purpose; (iv) if at any time any of the
representations and warranties of the Company contained in any agreement
contemplated hereby ceases to be true and correct in all material respects; (v)
of the receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any
Proceeding for such purpose; and (vi) of the occurrence of any event that makes
any statement made in the Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires any revisions to the Registration Statement,
Prospectus or other documents so that, in the case of the Registration Statement
or the Prospectus, as the case may be, it will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

          (d)     Use its best efforts to avoid the issuance of, or, if issued,
obtain the withdrawal of, (i) any order suspending the effectiveness of the
Registration Statement or (ii) any suspension of the qualification (or exemption
from qualification) of any of the Registrable Securities for sale in any
jurisdiction, at the earliest practicable moment.

          (e)     If requested by the Holders of a majority in interest of the
Registrable Securities, (i) promptly incorporate in a Prospectus supplement or
post-effective amendment to the Registration Statement such information as the
Company reasonably agrees should be included therein and (ii) make all required
filings of such Prospectus supplement or such post-effective amendment as soon
as practicable after the Company has received notification of the matters to be
incorporated in such Prospectus supplement or post-effective amendment.

          (f)     Furnish to each Holder, without charge, at least one conformed
copy of each Registration Statement and each amendment thereto, including
financial statements and schedules, all documents incorporated or deemed to be
incorporated therein by reference, and all exhibits to the extent requested by
such Person (including those previously furnished or incorporated by reference)
promptly after the filing of such documents with the Commission.

          (g)     Promptly deliver to each Holder, without charge, as many
copies of the Prospectus or Prospectuses (including each form of prospectus) and
each amendment or supplement thereto as such Persons may reasonably request; and
the Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto, during periods in which such Prospectus and each amendment
or supplement thereto are effective, by each of the selling Holders in
connection with the offering and sale of the Registrable Securities covered by
such Prospectus and any amendment or supplement thereto.

                                        5
<PAGE>
          (h)     Prior to any public offering of Registrable Securities, use
its best efforts to register or qualify or cooperate with the selling Holders in
connection with the registration or qualification (or exemption from such
registration or qualification) of such Registrable Securities for offer and sale
under the securities or Blue Sky laws of such jurisdictions within the United
States as any Holder requests in writing, to keep each such registration or
qualification (or exemption therefrom) effective during the Effectiveness Period
and to do any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of the Registrable Securities covered by a
Registration Statement; provided, however, that the Company shall not be
required to qualify generally to do business in any jurisdiction where it is not
then so qualified or to take any action that would subject it to general service
of process in any such jurisdiction where it is not then so subject or subject
the Company to any material tax in any such jurisdiction where it is not then so
subject.

          (i)     Cooperate with the Holders to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be sold pursuant to a Registration Statement, which certificates shall, if
required under the terms of this Agreement, be free of all restrictive legends,
and to enable such Registrable Securities to be in such denominations and
registered in such names as any Holder may request within the applicable time
periods prescribed for the issuance of shares upon exercise of Warrants.

          (j)     Upon the occurrence of any event contemplated by Section
                                                                   -------
3(c)(vi), as promptly as possible, prepare a supplement or amendment, including
--------
a post-effective amendment, to the Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as
thereafter delivered, neither the Registration Statement nor such Prospectus
will contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

          (k)     Use its best efforts to cause all Registrable Securities
relating to such Registration Statement to be listed on the OTC Bulletin Board,
Nasdaq SmallCap Market, Nasdaq National Market, American Stock Exchange and any
other securities exchange, quotation system or market, if any, on which similar
securities issued by the Company are then listed as and when required pursuant
to the Purchase Agreement.

          (l)     Comply in all material respects with all applicable rules and
regulations of the Commission and make generally available to its security
holders earning statements satisfying the provisions of Section 11(a) of the
Securities Act and Rule 158 not later than 45 days after the end of any 12-month
period (or 90 days after the end of any 12-month period if such period is a
fiscal year) commencing on the first day of the first fiscal quarter of the
Company after the effective date of the Registration Statement, which statement
shall conform to the requirements of Rule 158.

                                        6
<PAGE>
          (m)     If the Registration Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (if such reference to such Holder by name or otherwise
is not required by the Securities Act or any similar federal statute then in
force) the deletion of the reference to such Holder in any amendment or
supplement to the Registration Statement filed or prepared subsequent to the
time that such reference ceases to be required.

          Each Holder covenants and agrees that (i) it will not sell any
Registrable Securities under the Registration Statement until it has received
copies of the Prospectus as then amended or supplemented as contemplated in
Section 3(g) and notice from the Company that such Registration Statement and
------------
any post-effective amendments thereto have become effective as contemplated by
Section 3(c), (ii) it and its officers, directors or Affiliates, if any, will
------------
comply with the prospectus delivery requirements of the Securities Act as
applicable to them in connection with sales of Registrable Securities pursuant
to the Registration Statement and (iii) it will furnish to the Company
information regarding such Holder and the distribution of such Registrable
Securities as is required by law to be disclosed in the Registration Statement,
and the Company may exclude from such registration the Registrable Securities of
any such Holder who unreasonably fails to furnish such information within a
reasonable time after receiving such request.

          Each Holder agrees by its acquisition of such Registrable Securities
that, upon receipt of a notice from the Company of the occurrence of any event
of the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v) or
                         ----------------  ---------  --------  -------
3(c)(vi), such Holder will forthwith discontinue disposition of such Registrable
--------
Securities under the Registration Statement until such Holder's receipt of the
copies of the supplemented Prospectus and/or amended Registration Statement
contemplated by Section 3(j), or until it is advised in writing (the "Advice")
                ------------                                          ------
by the Company that the use of the applicable Prospectus may be resumed, and, in
either case, has received copies of any additional or supplemental filings that
are incorporated or deemed to be incorporated by reference in such Prospectus or
Registration Statement.

          (n)     If (i) there is material non-public information regarding the
Company which the Company's Board of Directors (the "Board") reasonably
                                                     -----
determines not to be in the Company's best interest to disclose and which the
Company is not otherwise required to disclose, or (ii) there is a significant
business opportunity (including, but not limited to, the acquisition or
disposition of assets (other than in the ordinary course of business) or any
merger, consolidation, tender offer or other similar transaction) available to
the Company which the Board reasonably determines not to be in the Company's
best interest to disclose, then the Company may postpone or suspend filing or
effectiveness of a registration statement for a period not to exceed 20
consecutive days, provided that the Company may not postpone or suspend its
obligation under this Section 3(n) for more than 45 days in the aggregate during
                      ------------
any 12 month period; provided, however, that no such postponement or suspension
shall be permitted for consecutive 20 day periods, arising out of the same set
of facts, circumstances or transactions.

                                        7
<PAGE>
     4.     Registration Expenses. All fees and expenses incident to the
            ---------------------
performance of or compliance with this Agreement by the Company, except as and
to the extent specified in this Section 4, shall be borne by the Company whether
                                ---------
or not the Registration Statement is filed or becomes effective and whether or
not any Registrable Securities are sold pursuant to the Registration Statement.
The fees and expenses referred to in the foregoing sentence shall include,
without limitation, (i) all registration and filing fees (including, without
limitation, fees and expenses (A) with respect to filings required to be made
with the OTC Bulletin Board, Nasdaq SmallCap Market, Nasdaq National Market,
American Stock Exchange and each other securities exchange or market on which
Registrable Securities are required hereunder to be listed, (B) with respect to
filings required to be made with the National Association of Securities Dealers,
Inc. and the NASD Regulation, Inc. and (C) in compliance with state securities
or Blue Sky laws), (ii) printing expenses (including, without limitation,
expenses of printing certificates for Registrable Securities and of printing
prospectuses if the printing of prospectuses is requested by the holders of a
majority of the Registrable Securities included in the Registration Statement),
(iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of
counsel for the Company, (v) Securities Act liability insurance, if the Company
so desires such insurance, and (vi) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement, including, without limitation, the Company's
independent public accountants (including the expenses of any comfort letters or
costs associated with the delivery by independent public accountants of a
comfort letter or comfort letters).  In addition, the Company shall be
responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit, the
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder.

     5.     Indemnification.
            ---------------

          (a)     Indemnification by the Company.  The Company shall,
                  ------------------------------
notwithstanding any termination of this Agreement, indemnify and hold harmless
the Holder, the officers, directors, agents, brokers (including brokers who
offer and sell Registrable Securities as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment advisors
and employees of each of them, each Person who controls the Holder (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
and the officers, directors, agents and employees of each such controlling
Person, to the fullest extent permitted by applicable law, from and against any
and all losses, claims, damages, liabilities, costs (including, without
limitation, costs of preparation and attorneys' fees) and expenses
(collectively, "Losses") (as determined by a court of competent jurisdiction in
                ------
a final judgment not subject to appeal or review), as incurred, arising solely
out of based solely upon any untrue or alleged untrue statement of a material
fact contained in the Registration Statement, any Prospectus or any form of
prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising solely out of or based solely upon any omission or
alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus or form of
prospectus or supplement thereto, in the light of the circumstances under which
they were made) not misleading, except to the extent, but only to the extent,
that such untrue statements or omissions are based solely upon information
regarding

                                        8
<PAGE>
the Holder or such other Indemnified Party furnished in writing to the Company
by the Holder expressly for use therein, which information was reasonably relied
on by the Company for use therein or to the extent that such information relates
to such Holder or the Holder's proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by the Holder
expressly for use in the Registration Statement, such Prospectus or such form of
Prospectus or in any amendment or supplement thereto.  The Company shall notify
the Holder promptly of the institution, threat or assertion of any Proceeding of
which the Company is aware in connection with the transactions contemplated by
this Agreement.

          (b)     Indemnification by Holder.  The Holder shall indemnify and
                  -------------------------
hold harmless the Company, the directors, officers, agents and employees, each
Person who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors, officers,
agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses (as determined by a court of
competent jurisdiction in a final judgment not subject to appeal or review), as
incurred, arising solely out of or based solely upon any untrue statement or
alleged untrue statement of a material fact contained in the Registration
Statement, any Prospectus, or any form of prospectus or form of prospectus or in
any amendment or supplement thereto or in any preliminary prospectus, or arising
solely out of or based solely upon any omission of a material fact required to
be stated therein or necessary to make the statements therein (in the case of
any Prospectus or supplement thereto, in the light of the circumstances under
which they were made) not misleading, to the extent, but only to the extent,
that such untrue statement or omission or alleged untrue statement or omission
is contained in any information so furnished in writing by the Holder or other
Indemnified Party to the Company specifically for inclusion in the Registration
Statement or such Prospectus and that such information was reasonably relied
upon by the Company for use in the Registration Statement, such Prospectus or
such form of prospectus or to the extent that such information relates to the
Holder or the Holder's proposed method of distribution of Registrable Securities
and was reviewed and expressly approved in writing by the Holder expressly for
use in the Registration Statement, such Prospectus or such form of Prospectus.

          (c)     Conduct of Indemnification Proceedings.  If any Proceeding
                  --------------------------------------
shall be brought or asserted against any Person entitled to indemnity hereunder
(an "Indemnified Party"), such Indemnified Party promptly shall notify the
     -----------------
Person from whom indemnity is sought (the "Indemnifying Party") in writing, and
                                           -------------------
the Indemnifying Party shall assume the defense thereof, including the
employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof;
provided, however, that the failure of any Indemnified Party to give such notice
--------  -------
shall not relieve the Indemnifying Party of its obligations or liabilities
pursuant to this Agreement, except (and only) to the extent that it shall be
finally determined by a court of competent jurisdiction (which determination is
not subject to appeal or further review) that such failure shall have
proximately and materially adversely prejudiced the Indemnifying Party.

                                        9
<PAGE>
          An Indemnified Party shall have the right to employ separate counsel
in any such Proceeding and to participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Party
or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; or (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party
shall have been advised by counsel (which shall be reasonably acceptable to the
Indemnifying Party) that a conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the Indemnifying Party (in
which case, if such Indemnified Party notifies the Indemnifying Party in writing
that it elects to employ separate counsel at the expense of the Indemnifying
Party, the Indemnifying Party shall not have the right to assume the defense
thereof and such counsel shall be at the expense of the Indemnifying Party).
The Indemnifying Party shall not be liable for any settlement of any such
Proceeding affected without its written consent, which consent shall not be
unreasonably withheld or delayed.  No Indemnifying Party shall, without the
prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding.

          All fees and expenses of the Indemnified Party (including reasonable
fees and expenses to the extent incurred in connection with investigating or
preparing to defend such Proceeding in a manner not inconsistent with this
Section 5) shall be paid to the Indemnified Party, as incurred, within ten (10)
---------
Business Days of written notice thereof to the Indemnifying Party (regardless of
whether it is ultimately determined that an Indemnified Party is not entitled to
indemnification hereunder; provided, however, that the Indemnifying Party may
                           --------  -------
require such Indemnified Party to undertake to reimburse all such fees and
expenses to the extent it is finally judicially determined that such Indemnified
Party is not entitled to indemnification hereunder).

          (d)     Contribution.  If a claim for indemnification under Section
                  ------------                                        -------
5(a) or Section 5(b) is unavailable to an Indemnified Party because of a failure
----    ------------
or refusal of a governmental authority to enforce such indemnification in
accordance with its terms (by reason of public policy or otherwise), then each
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations.  The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to,
among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information supplied by,
such Indemnifying, Party or Indemnified Party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission.  The amount paid or payable by a party as a
result of any Losses shall be deemed to include, subject to the limitations set
forth in Section 5(c), any reasonable attorneys' or other reasonable fees or
         ------------
expenses incurred by such party in connection with any Proceeding to the extent
such party would have been indemnified

                                       10
<PAGE>
for such fees or expenses if the indemnification provided for in this Section
was available to such party in accordance with its terms.

          The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata
                              ------------
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

          The indemnity and contribution agreements contained in this Section
are in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.  Notwithstanding the foregoing, the obligations of the
Holders hererin shall be the several, and not joint, obligation of each Holder
as to itself and not as to any other Holder.

     6.     Rule 144. Provided the Company is subject to the reporting
            --------
requirements of the Exchange Act, as long as the Holder owns Shares, the Company
covenants to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to Section 13(a) or 15(d) of the Exchange
Act and to promptly furnish the Holders with true and complete copies of all
such filings.  As long as the Holder owns Notes Shares, if the Company is not
required to file reports pursuant to Section 13(a) or 15(d) of the Exchange Act,
it will prepare and furnish to the Holder and make publicly available in
accordance with Rule 144(c) promulgated under the Securities Act annual and
quarterly financial statements, together with a discussion and analysis of such
financial statements in form and substance substantially similar to those that
would otherwise be required to be included in reports required by Section 13(a)
or 15(d) of the Exchange Act, as well as any other information required thereby,
in the time period that such filings would have been required to have been made
under the Exchange Act.  The Company further covenants that it will take such
further action as the Holder may reasonably request, all to the extent required
from time to time to enable such Person to sell Note Shares without registration
under the Securities Act within the limitation of the exemptions provided by
Rule 144 promulgated under the Securities Act, including providing any legal
opinions relating to such sale pursuant to Rule 144.  Upon the request of the
Holder, the Company shall deliver to the Holder a written certification of a
duly authorized officer as to whether it has complied with such requirements.

     7.     Miscellaneous.

          (a)     Remedies.  In the event of a breach by the Company or by the
                  --------
Holder, of any of their obligations under this Agreement, the Holder or the
Company, as the case may be, in addition to being entitled to exercise all
rights granted by law and under this Agreement, including recovery of damages,
will be entitled to specific performance of its rights under this Agreement.
The Company and the Holder agree that monetary damages would not provide
adequate compensation for any losses incurred by reason of a breach by it of any
of the provisions of this Agreement and hereby further agrees that, in the event
of any action for specific performance in respect of such breach, it shall waive
the defense that a remedy at law would be adequate.

                                       11
<PAGE>
          (b)     No Inconsistent Agreements.  The Company has not, as of the
                  --------------------------
date hereof entered into and currently in effect, nor shall the Company, on or
after the date of this Agreement, enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the Holder in this
Agreement or otherwise conflicts with the provisions hereof.

          (c)     Amendments and Waivers.  The provisions of this Agreement,
                  ----------------------
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the same shall be in writing and signed by the Company
and each of the Holders.  Notwithstanding the foregoing, a waiver or consent to
depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of Holders and that does not directly or indirectly
affect the rights of other Holders may be given by Holders of at least a
majority of the Registrable Securities to which such waiver or consent relates;
provided, however, that the provisions of this sentence may not be amended,
modified, or supplemented except in accordance with the provisions of the
immediately preceding sentence.

          (d)     Notices.  Any and all notices or other communications or
                  -------
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earlier of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified for notice prior to 5:00 p.m., Houston
time, on a Business Day, (ii) the Business Day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice later than 5:00 p.m., Houston time, on any
date and earlier than 11:59 p.m., Houston time, on such date, (iii) the Business
Day following the date of mailing, if sent by nationally recognized overnight
courier service or (iv) actual receipt by the party to whom such notice is
required to be given.  The addresses for such communications shall be with
respect to the Holder at its address set forth under its name on the signature
page hereto, or with respect to the Company, addressed to:

                         Houston American Energy Corp.
                         801 Travis, Suite 2020
                         Houston, Texas 77002
                         Attention:  Chief Executive Officer
                         Telecopier:  (713) 222-6966
                         Telephone:  (713) 222-6440

or to such other address or addresses or facsimile number or numbers as any such
party may most recently have designated in writing to the other parties hereto
by such notice.

          (e)     Successors and Assigns.  This Agreement shall be binding upon
                  ----------------------
and inure to the benefit of the parties and their successors and permitted
assigns and shall inure to the benefit of the Holder and its successors and
permitted assigns.  The Company may not assign this Agreement or any of its
rights or obligations hereunder without the prior written consent of the Holder.
Each Investor may assign its rights hereunder in the manner and to the Persons
as permitted under this Agreement and the Purchase Agreement.

                                       12
<PAGE>
          (f)     Assignment of Registration Rights.  The rights of the Holder
                  ---------------------------------
hereunder, including the right to have the Company register for resale
Registrable Securities in accordance with the terms of this Agreement, shall be
automatically assignable by the Holder to any Affiliate of the Holder or any
other Holder or Affiliate of any other Holder of all or a portion of the
Registrable Securities if:  (i) the Holder agrees in writing with the transferee
or assignee to assign such rights, and a copy of such agreement is furnished to
the Company within a reasonable time after such assignment, (ii) the Company is,
within a reasonable time after such transfer or assignment, furnished with
written notice of (a) the name and address of such transferee or assignee, and
(b) the securities with respect to which such registration rights are being
transferred or assigned, (iii) following such transfer or assignment the further
disposition of such securities by the transferee or assignees is restricted
under the Securities Act and applicable state securities laws, (iv) at or before
the time the Company receives the written notice contemplated by clause (ii) of
this Section, the transferee or assignee agrees in writing with the Company to
be bound by all of the provisions of this Agreement, and (v) such transfer shall
have been made in accordance with the applicable requirements of the Purchase
Agreement. In addition, each Holder shall have the right to assign its rights
hereunder to any other Person with the prior written consent of the Company,
which consent shall not be unreasonably withheld.  The rights to assignment
shall apply to the Holders (and to subsequent) successors and assigns.

          (g)     Counterparts.  This Agreement may be executed in any number of
                  ------------
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement.
In the event that any signature is delivered by facsimile transmission, such
signature shall create a valid binding obligation of the party executing (or on
whose behalf such signature is executed) the same with the same force and effect
as if such facsimile signature were the original thereof.

          (h)     Governing Law.  This Agreement shall be governed by and
                  -------------
construed in accordance with the laws of the State of Texas, without regard to
principles of conflicts of law thereof.

          (i)     Cumulative Remedies.  The remedies provided herein are
                  -------------------
cumulative and not exclusive of any remedies provided by law.

          (j)     Severability. If any term, provision, covenant or restriction
                  ------------
of this Agreement is held to be invalid, illegal, void or unenforceable in any
respect, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be
affected, impaired or invalidated, and the parties hereto shall use their
reasonable efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction.  It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

          (k)     Headings.  The headings herein are for convenience only, do
                  --------
not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.

                            [SIGNATURE PAGE FOLLOWS]

                                       13
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement effective as of the date indicated below as the date the
Agreement is accepted by the Company.

COMPANY:                         HOUSTON AMERICAN ENERGY CORP.

Date:                , 2005      By:
      ----------------              --------------------------------------------
                                    John F. Terwilliger, Chief Executive Officer

INVESTOR:
                                 -----------------------------------------------
                                 Print Name of Investor

Date:                , 2005
      ----------------           -----------------------------------------------
                                 Signature of Individual Investor

                                 - OR -

                                 Signature of Investor Other than an Individual

                                 -----------------------------------------------
                                 Signature

                                 -----------------------------------------------
                                 Print Name

                                 -----------------------------------------------
                                 Title

                                 Address of Investor:

                                 -----------------------------------------------
                                 Street Address

                                 -----------------------------------------------
                                 City, State and Zip Code

                                       14

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