Document:

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Exhibit 10.5
GUARANTY
dated as of
February __, 2005
by
[Name of Subsidiary]

as Guarantor
for the benefit of
THE PURCHASERS REFERRED TO HEREIN
as the Lenders

GUARANTY
This GUARANTY (this "Guaranty"), dated as of February __, 2005, is made by
______________________, a __________ corporation ("Guarantor"), in favor of
the Purchasers named on Exhibit A to the Purchase Agreement (collectively,
"Lenders").
All capitalized terms appearing and not defined herein shall have the same
meanings ascribed to them in that certain Securities Purchase Agreement, dated
as of the date hereof (as hereafter amended or otherwise modified, the
"Purchase Agreement"), by and among Consolidated Energy, Inc., a Wyoming
corporation ("Borrower"), and the Lenders.
W I T N E S E T H:
WHEREAS, the Borrower has requested the Lenders to make loans to it in the
aggregate principal amount of up to $14,000,000 (the "Loans") in accordance
with the Purchase Agreement;
WHEREAS, the Loans will be evidenced by the Notes;
WHEREAS, Guarantor is an operating Subsidiary of the Borrower, and Guarantor
will benefit from the making of the Loans;
WHEREAS, to induce the Lenders to make the Loans pursuant to the Purchase
Agreement, and to accept the Notes, the Guarantor has agreed to execute and
deliver this Guaranty to be binding upon the Guarantor and its successors and
assigns;
WHEREAS, the Lenders is unwilling to extend credit to the Borrower unless this
Guaranty is executed by the Guarantor and delivered to the Lenders; and
WHEREAS, it is a condition to the obligations of the Lenders to make the Loans
to the Borrower pursuant to the Purchase Agreement that this Guaranty is
executed by the Guarantor and delivered to the Lenders.
NOW, THEREFORE, in consideration of the Loans to the Borrower, in order to
induce the Lenders to execute and deliver the Purchase Agreement and to accept
the Notes, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Guarantor, for itself and
its successors and assigns, hereby covenants and agrees with the Lenders, for
the benefit of the Lenders and their successors and assigns, as follows:
1. Guaranty Obligations.  "Guaranty Obligations" shall mean the prompt,
absolute and unconditional payment in full of the following:
 (a) the aggregate outstanding principal amount of the Loans;
 (b) all interest on the aggregate outstanding principal amount of the Loans;
and
 (c) all other amounts due and payable by the Borrower under the Notes and the
other Transaction Documents.
2. Guaranty. The Guarantor unconditionally and irrevocably guarantees the
Guaranty Obligations to the Lenders. If an "Event of Default" under any Note
occurs, the Guarantor shall, within five (5) days following written notice
from any Lender to Guarantor demanding payment hereunder, pay to such Lender,
in immediately available funds, such amount of the Guaranty Obligations as
such Lender shall specify in such notice.

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3. Representations, Warranties and Covenants of Guarantor. Guarantor hereby
represents, warrants and covenants to the Lenders as follows:
 (a) Guarantor is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of __________ and has the requisite
corporate power to own, lease and operate its properties and assets and to
conduct its business as it is now being conducted. Guarantor is duly qualified
as a foreign corporation to do business and is in good standing in every
jurisdiction in which the nature of the business conducted or property owned
by it makes such qualification necessary, except for any jurisdiction(s)
(alone or in the aggregate) in which the failure to be so qualified will not
have a Material Adverse Effect.
(b) Guarantor has the requisite corporate power and authority to enter into
and perform this Guaranty, and each other agreement and document contemplated
hereby. The execution, delivery and performance of this Guaranty by Guarantor
and the consummation by it of the transactions contemplated hereby have been
duly and validly authorized by all necessary corporate action, and no further
consent or authorization of Guarantor, its Board of Directors or its
stockholders is required. This Guaranty has been duly executed and delivered
by Guarantor, and constitutes a valid and binding obligation of Guarantor
enforceable against Guarantor in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, reorganization,
moratorium, liquidation, conservatorship, receivership or similar laws
relating to, or affecting generally the enforcement of, creditor's rights and
remedies or by other equitable principles of general application.
(c) Guarantor is not insolvent, and Guarantor will not be rendered insolvent
by execution of this Guaranty or any other Transaction Document to which
Guarantor is a party or by the consummation of the transactions contemplated
hereby or thereby.
(d) The consummation of the transactions contemplated hereby and the
performance by Guarantor of its obligations under this Guaranty or any other
Transaction Document to which Guarantor is a party will not result in any
breach of, give rise to a lien under, or constitute a default under, any
mortgage, deed of trust, lease, bank loan or credit agreement, any operating
agreement, partnership agreement, corporate charter, by-laws, shareholder
agreement or other agreement or instrument to which Guarantor is a party or by
which Guarantor or its properties or assets may be bound or affected.
(e) Except as disclosed in writing to the Lenders, there are no actions, suits
or proceedings pending, or, to the knowledge of Guarantor, threatened against
or affecting Guarantor, at law or in equity, before or by any governmental
authority, and Guarantor is not subject to, in default of or in violation with
respect to any order, writ, injunction, decree or demand of any court or any
governmental authority that could materially adversely affect Guarantor's
obligations hereunder.
(f) Guarantor is deriving or expects to derive a financial or other advantage
from each and every obligation incurred by the Borrower to the Lenders.
(g) Guarantor hereby acknowledges receipt of copies of, and hereby approves,
the Purchase Agreement and the other Transaction Documents.
(h) Guarantor acknowledges and agrees that the Lenders may apply any payments
(other than payments made by Guarantor hereunder) or recoveries received after
a default under any of the Transaction Documents to principal, interest, fees,
expenses and other sums due with respect to the Loans in such order as may be
provided in the Purchase Agreement or the other Transaction Documents or, to
the extent not so provided, in such order as the Lenders, in their sole
discretion, may elect.
4. Waiver of Election of Remedies. Guarantor waives (to the extent permitted
by law) any right to require or compel any Lender to (a) proceed against the
Borrower or any other guarantor; (b) proceed against or exhaust any security
for the Loans or the Guaranty Obligations; or (c) pursue any other remedy in

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any Lender's power whatsoever; and failure of the Lenders to do any of the
foregoing shall not exonerate, release or discharge Guarantor from its
absolute, unconditional and independent liabilities to the Lenders hereunder.
Guarantor hereby waives (to the extent permitted by law) any and all legal
requirements that any Lender shall institute any action or proceedings at law
or in equity against the Borrower or anyone else in respect of the Loans or
the Purchase Agreement or any other Transaction Document or resort to or seek
to realize upon any security held by any Lender, as a condition precedent to
bringing an action against Guarantor upon this Guaranty.
5. Right of Separate Actions. Each Lender may bring and prosecute a separate
action against Guarantor to enforce the Guarantor's liabilities hereunder,
whether or not any action is brought against any other person and whether or
not any other person is joined in any such action or actions. Nothing shall
prohibit any Lender from exercising its rights against Guarantor, the
Borrower, or any other person, simultaneously, jointly and/or severally.
6. Waiver of Rights of Subrogation. Guarantor hereby irrevocably waives any
rights to be subrogated to the rights of the Lenders with respect to the
Guaranty Obligations and the Notes or any other Transaction Document.
Guarantor hereby agrees that Guarantor will not institute or take any action
seeking reimbursement against the Borrower or any other guarantor until such
time as the Lenders shall have received payment in full in cash in
satisfaction of all the obligations of the Borrower under the Notes and the
other Transaction Documents.  No failure on the part of any Lender to
exercise, and no delay in exercising, any right, remedy or power hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise by
any Lender of any right, remedy or power hereunder preclude any other or
future exercise of any other right, remedy or power.
7. Waiver of Notice, Consent, etc.
(a) This Guaranty shall be construed as a continuing, absolute and
unconditional guaranty of payment.
(b) Guarantor hereby waives acceptance and notice of acceptance of this
Guaranty by the Lenders and notice of presentment, demand, protest, notice of
protest and of dishonor, notices of default and all other notices relative to
this Guaranty of every kind and description now or hereafter provided by any
agreement between the Borrower and the Lenders or any statute or rule of law,
except those specifically required by this Guaranty.
(c) Guarantor waives any and all notice of the creation, renewal, extension or
accrual of any of the obligations of the Borrower under any of the Transaction
Documents. The obligations of the Borrower under any of the Transaction
Documents, and each of them, shall conclusively be deemed to have been
created, contracted or incurred in reliance upon this Guaranty and all
dealings between the Borrower and the Lenders shall likewise be conclusively
presumed to have been made or consummated in reliance upon this Guaranty.
(d) Guarantor hereby agrees that the terms, covenants and provisions contained
in the Purchase Agreement, the Notes or in any other Transaction Document may
be altered, extended, modified, waived, released or cancelled by the Lenders,
and the Guarantor agrees that this Guaranty and Guarantor's liability
hereunder shall be in no way affected, diminished or released by any such
alteration, extension, modification, release, waiver or cancellation.
8. No Discharge; Remedies Cumulative. Guarantor shall not be discharged,
released or exonerated, in any way, from Guarantor's absolute, unconditional
and independent liabilities hereunder, even though any rights or defenses that
Guarantor may have against the Lenders or others may be destroyed, diminished
or otherwise affected by:
(a) any declaration by any Lender of a default in respect of any of the
obligations of the Borrower under any of the Transaction Documents;
(b) the exercise by any Lender of any rights or remedies against the Borrower,
Guarantor ("Loan Party") or any other person;

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(c) the failure of any Lender to exercise any rights or remedies against the
Borrower, any Loan Party or any other person;
(d) any bankruptcy or reorganization of the Borrower or the voluntary or
involuntary participation by the Borrower in any settlement or composition for
the benefit of such Borrower's creditors either in liquidation, readjustment,
receivership, bankruptcy or otherwise;
(e) the release of any other guarantor by agreement, operation of law or
otherwise; or
(f) any such action by any Lender that would release or limit the liability of
any guarantor to the Lenders even if the effect of that action is to deprive
the Guarantor of the right to collect reimbursement from the Borrower or any
other guarantor for any sums paid to the Lenders.
All rights and remedies of the Lenders hereunder or under any of the
Transaction Documents shall be cumulative and may be exercised singularly or
concurrently. The rights of the Lenders under this Guaranty are in addition to
and not in diminution of the rights of the Lenders under any other Transaction
Document.
9. Entire Agreement; Modification and Waiver. This Guaranty represents the
entire agreement among the Guarantor and the Lenders with respect to the
matters referred to herein and therein together with the Purchase Agreement to
the extent referenced herein, and no waiver or modification hereof or thereof
shall be effective unless in writing and signed by the party against whom
enforcement of the same is sought.
10. Governing Law; Venue. THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES AND OTHER PERSONS BENEFITTED HEREUNDER SHALL BE CONSTRUED, ENFORCED,
AND INTERPRETED ACCORDING TO THE LAWS OF THE STATE OF TEXAS, APPLICABLE TO
CONTRACTS MADE IN AND PERFORMED IN THE STATE OF TEXAS, WITHOUT REGARD TO ITS
PRINCIPLES OF CONFLICT OF LAWS. Guarantor (i) hereby irrevocably submits to
the non-exclusive jurisdiction of the United States District Court sitting in
the Northern District of Texas and the courts of the State of Texas located in
Dallas, Texas, for the purposes of any suit, action or proceeding arising out
of or relating to this Guaranty or the transactions contemplated hereby, and
(ii) hereby waives, and agrees not to assert in any such suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
such court, that the suit, action or proceeding is brought in an inconvenient
forum or that the venue of the suit, action or proceeding is improper.
11. Successors and Assigns. This Guaranty shall be binding upon the Guarantor
and upon its successors and assigns, and shall inure to the benefit of each
Lender and its successors and assigns; provided, however, that this Guaranty
shall not be assignable by Guarantor without the written consent of all
Lenders.
12. Time of the Essence. Time shall be of the essence with regard to the
performance by Guarantor of its obligations under this Guaranty.
13. Singular and Plural. As used in this Guaranty, the singular shall include
the plural as the context requires, and the masculine, feminine and neuter
pronouns shall each include the other as the context requires.
14. Waiver of Trial by Jury. GUARANTOR HEREBY IRREVOCABLY WAIVES TRIAL BY JURY
IN ANY ACTION, SUIT OR PROCEEDING, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE, ARISING OUT OF OR IN ANY WAY CONNECTED TO THE LOANS, THIS GUARANTY
OR ANY OF THE OTHER TRANSACTION DOCUMENTS.
15. Severability.  If any term or provision of this Guaranty or any
application thereof shall be held to be invalid, illegal or unenforceable, the
remainder of this Guaranty and any other application of such term or provision
shall not be affected thereby.
16. Enforcement Expenses. Guarantor hereby agrees to pay all reasonable
out-of-pocket costs and expenses of the Lenders in connection with the
enforcement of this Guaranty and any amendment, waiver or consent relating
hereto (including, without limitation, the fees and disbursements of counsel
employed by any Lender).

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17. Headings. The headings in this Guaranty are for purposes of reference only
and shall not limit or define the meaning hereof.
IN WITNESS WHEREOF, this Guaranty has been executed by the undersigned as of
the date first above written.

Guarantor:
[Name of Guarantor]

By:__________________________________
Name:
Title:<PAGE>
Exhibit 10.6
Warrant
THE WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SHARES ISSUABLE UPON
EXERCISE OF THE WARRANT EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED
EXCEPT UPON DELIVERY TO CONSOLIDATED ENERGY, INC. OF AN OPINION OF COUNSEL
THAT SUCH TRANSFER WILL NOT VIOLATE THE SECURITIES ACT OF 1933, AS AMENDED

THE TRANSFER OF THIS WARRANT IS RESTRICTED AS DESCRIBED HEREIN.

Consolidated Energy, Inc.

Warrant for the Purchase of Shares of Common Stock,
par value $0.001 per Share

No. W-____ ______ Shares

THIS CERTIFIES that, for value received, _____________, whose address is
_________________________ (together with any person or entity to which this
Warrant (or any portion hereof) may be transferred, the "Holder"), is entitled
to subscribe for and purchase from Consolidated Energy, Inc., a Wyoming
corporation (the "Company"), upon the terms and conditions set forth herein,
______ shares of the Company's common stock, par value $0.001 per share
("Common Stock"), at a price of $1.70 per share (the "Exercise Price"). As
used herein the term "this Warrant" shall mean and include this Warrant and
any Common Stock or warrants hereafter issued as a consequence of the exercise
or transfer of this Warrant in whole or in part.

The number of shares of Common Stock issuable upon exercise of the Warrants
(the "Warrant Shares") and the Exercise Price may be adjusted from time to
time as hereinafter set forth. The Warrant Shares are entitled to the
benefits, and subject to the obligations, set forth in the Registration Rights
Agreement among the Company, the Holder and certain other parties dated
concurrently herewith (the "Registration Rights Agreement").

1. Exercise Price and Exercise Period.  This Warrant may be exercised at any
time or from time to time during the period commencing at 10:00 A.M. Eastern
time on February __, 2005 and ending at 5:00 P.M. Eastern Time on February __,
2010 (the "Exercise Period").

2. Procedure for Exercise; Effect of Exercise.

(a) Cash Exercise. This Warrant may be exercised, in whole or in part, by the
Holder during normal business hours on any business day during the Exercise
Period by (i) the presentation and surrender of this Warrant to the Company at
its principal executive office along with a duly executed Notice of Exercise
(in the form attached hereto) specifying the number of Warrant Shares to be
purchased, and (ii) delivery of payment to the Company of the Exercise Price
for the number of Warrant Shares specified in the Notice of Exercise by cash,
wire transfer of immediately available funds to a bank account specified by
the Company, or by certified or bank cashier's check.

(b) Cashless Exercise. This Warrant may also be exercised by the Holder
through a cashless exercise, as described in this Section 2(b). In such case,
this Warrant may be exercised, in whole or in part, by the Holder during

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normal business hours on any business day during the Exercise Period by the
presentation and surrender of this Warrant to the Company at its principal
office along with a duly executed Notice of Exercise specifying the number of
Warrant Shares to be applied to such exercise. The number of shares of Common
Stock to be issued upon exercise of this Warrant pursuant to this Section 2(b)
shall equal the value of this Warrant (or the portion thereof being canceled)
computed as of the date of delivery of this Warrant to the Company using the
following formula:

X =
Y(A-B)
A
 Where:

X  =  the number of shares of Common Stock to be issued to Holder under this
Section 2(b);

Y  =  the number of Warrant Shares identified in the Notice of Exercise as
being applied to the subject exercise;

A  =  the Current Market Price on such date; and

B  =  the Exercise Price on such date

For purposes of this Section 2(b), Current Market Price shall have the
definition provided in Section 6(g).

The Company acknowledges and agrees that this Warrant was issued on the date
set forth at the end of this Warrant. Consequently, the Company acknowledges
and agrees that, if the Holder conducts a cashless exercise pursuant to this
Section 2(b), the period during which the Holder held this Warrant may, for
purposes of Rule 144 promulgated under the Securities Act of 1933, as amended
(the "Securities Act"), be "tacked" to the period during which the Holder
holds the Warrant Shares received upon such cashless exercise.

Notwithstanding the foregoing, the Holder may conduct a cashless exercise
pursuant to this Section 2(b) only after the first anniversary of the initial
issuance date of this Warrant, and then only in the event that a registration
statement covering the resale of the Warrant Shares is not then effective at
the time that the Holder wishes to conduct such cashless exercise.

(c) Effect of Exercise.  Upon receipt by the Company of this Warrant and a
Notice of Exercise, together with proper payment of the Exercise Price, as
provided in this Section 2, the Company agrees that such Warrant Shares shall
be deemed to be issued to the Holder as the record holder of such Warrant
Shares as of the close of business on the date on which this Warrant has been
surrendered and payment has been made for such Warrant Shares in accordance
with this Agreement and the Holder shall be deemed to be the holder of record
of the Warrant Shares, notwithstanding that the stock transfer books of the
Company shall then be closed or that certificates representing such Warrant
Shares shall not then be actually delivered to the Holder. A stock certificate
or certificates for the Warrant Shares specified in the Notice of Exercise
shall be delivered to the Holder as promptly as practicable, and in any event
within seven (7) business days, thereafter. The stock certificate(s) so
delivered shall be in any such denominations as may be reasonably specified by
the Holder in the Notice of Exercise.  If this Warrant should be exercised in
part only, the Company shall, upon surrender of this Warrant for cancellation,
execute and deliver a new Warrant evidencing the right of the Holder to
purchase the balance of the Warrant Shares subject to purchase hereunder.

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3. Registration of Warrants; Transfer of Warrants. Any Warrants issued upon
the transfer or exercise in part of this Warrant shall be numbered and shall
be registered in a Warrant Register as they are issued. The Company shall be
entitled to treat the registered holder of any Warrant on the Warrant Register
as the owner in fact thereof for all purposes and shall not be bound to
recognize any equitable or other claim to or interest in such Warrant on the
part of any other person, and shall not be liable for any registration or
transfer of Warrants which are registered or to be registered in the name of a
fiduciary or the nominee of a fiduciary unless made with the actual knowledge
that a fiduciary or nominee is committing a breach of trust in requesting such
registration or transfer, or with the knowledge of such facts that its
participation therein amounts to bad faith. This Warrant shall be transferable
only on the books of the Company upon delivery thereof duly endorsed by the
Holder or by its duly authorized attorney or representative, or accompanied by
proper evidence of succession, assignment, or authority to transfer.  In all
cases of transfer by an attorney, executor, administrator, guardian, or other
legal representative, duly authenticated evidence of his or its authority
shall be produced.  Upon any registration of transfer, the Company shall
deliver a new Warrant or Warrants to the person entitled thereto. This Warrant
may be exchanged, at the option of the Holder thereof, for another Warrant, or
other Warrants of different denominations, of like tenor and representing in
the aggregate the right to purchase a like number of Warrant Shares, upon
surrender to the Company or its duly authorized agent.

4. Restrictions on Transfer.  (a) The Holder, as of the date of issuance
hereof, represents to the Company that such Holder is acquiring the Warrants
for its own account for investment purposes and not with a view to the
distribution thereof or of the Warrant Shares.  Notwithstanding any provisions
contained in this Warrant to the contrary, this Warrant and the related
Warrant Shares shall not be transferable except pursuant to the proviso
contained in the following sentence or upon the conditions specified in this
Section 4, which conditions are intended, among other things, to insure
compliance with the provisions of the Securities Act and applicable state law
in respect of the transfer of this Warrant or such Warrant Shares. The Holder
by acceptance of this Warrant agrees that the Holder will not transfer this
Warrant or the related Warrant Shares prior to delivery to the Company of an
opinion of the Holder's counsel (as such opinion and such counsel are
described in Section 4(b) hereof) or until registration of such Warrant Shares
under the Securities Act has become effective or after a sale of such Warrant
or Warrant Shares has been consummated pursuant to Rule 144 or Rule 144A under
the Securities Act; provided, however, that the Holder may freely transfer
this Warrant or such Warrant Shares (without delivery to the Company of an
opinion of counsel) (i) to one of its nominees, affiliates or a nominee
thereof, (ii) to a pension or profit-sharing fund established and maintained
for its employees or for the employees of any affiliate,  (iii) from a nominee
to any of the aforementioned persons as beneficial owner of this Warrant or
such Warrant Shares, (iv) to a qualified institutional buyer, so long as such
transfer is effected in compliance with Rule 144A under the Securities Act, or
(v) to an accredited investor (as such term is defined in Regulation D under
the Securities Act).

(b) The Holder, by its acceptance hereof, agrees that prior to any transfer of
this Warrant or of the related Warrant Shares (other than as permitted by
Section 4(a) hereof or pursuant to a registration under the Securities Act),
the Holder will give written notice to the Company of its intention to effect
such transfer, together with an opinion of such counsel for the Holder, to the
effect that the proposed transfer of this Warrant and/or such Warrant Shares
may be effected without registration under the Securities Act.  Upon delivery
of such notice and opinion to the Company, the Holder shall be entitled to

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transfer this Warrant and/or such Warrant Shares in accordance with the
intended method of disposition specified in the notice to the Company.

(c) Each stock certificate representing Warrant Shares issued upon exercise or
exchange of this Warrant shall bear the following legend unless the opinion of
counsel referred to in Section 4(b) states such legend is not required:

"THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED EXCEPT UPON
DELIVERY TO CONSOLIDATED ENERGY, INC. OF AN OPINION OF COUNSEL THAT SUCH
TRANSFER WILL NOT VIOLATE THE SECURITIES ACT OF 1933, AS AMENDED."

The Holder understands that the Company may place, and may instruct any
transfer agent or depository for the Warrant Shares to place, a stop transfer
notation in the securities records in respect of the Warrant Shares.

5. Reservation of Shares. The Company shall at all times during the Exercise
Period reserve and keep available out of its authorized and unissued Common
Stock, solely for the purpose of providing for the exercise of the rights to
purchase all Warrant Shares granted pursuant to the Warrants, such number of
shares of Common Stock as shall, from time to time, be sufficient therefor.
The Company covenants that all shares of Common Stock issuable upon exercise
of this Warrant, upon receipt by the Company of the full Exercise Price
therefor, and all shares of Common Stock issuable upon conversion of this
Warrant, shall be validly issued, fully paid, non-assessable, and free of
preemptive rights, and free from all taxes, claims, liens, charges and other
encumbrances.

6. Exercise Price Adjustments.  The Exercise Price shall be subject to
adjustment from time to time as follows:

(a) (i)  In the event that the Company shall (A) pay a dividend or make a
distribution to all its stockholders, in shares of Common Stock, on any class
of capital stock of the Company or any subsidiary which is not directly or
indirectly wholly owned by the Company, (B) split or subdivide its outstanding
Common Stock into a greater number of shares, or (C) combine its outstanding
Common Stock into a smaller number of shares, then in each such case the
Exercise Price in effect immediately prior thereto shall be adjusted so that
the Holder of a Warrant thereafter surrendered for Exercise shall be entitled
to receive the number of shares of Common Stock that such Holder would have
owned or have been entitled to receive after the occurrence of any of the
events described above had such Warrant been exercised immediately prior to
the occurrence of such event. An adjustment made pursuant to this Section
6(a)(i) shall become effective immediately after the close of business on the
record date in the case of a dividend or distribution (except as provided in
Section 6(e) below) and shall become effective immediately after the close of
business on the effective date in the case of such subdivision, split or
combination, as the case may be. Any shares of Common Stock issuable in
payment of a dividend shall be deemed to have been issued immediately prior to
the close of business on the record date for such dividend for purposes of
calculating the number of outstanding shares of Common Stock under clauses
(ii) and (iii) below.

 (ii) In the event that the Company shall commit to issue or distribute New
Securities (as defined in the Securities Purchase Agreement, of even date
herewith, among the Company, the Holder and certain other Purchasers named
therein), in any such case at a price per share less than the Current Market
Price per share on the earliest of (A) the date the Company shall enter into a
firm contract for such issuance or distribution, (B) the record date for the

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determination of stockholders entitled to receive any such New Securities, if
applicable, or (C) the date of actual issuance or distribution of any such New
Securities (provided that the issuance of Common Stock upon the exercise of
New Securities that are rights, warrants, options or convertible or
exchangeable securities ("New Derivative Securities") will not cause an
adjustment in the Exercise Price if no such adjustment would have been
required at the time such New Derivative Security was issued), then the
Exercise Price in effect immediately prior to such earliest date shall be
adjusted so that the Exercise Price shall equal the price determined by
multiplying the Exercise Price in effect immediately prior to such earliest
date by the fraction:

(x) whose numerator shall be (I) the number of shares of Common Stock
outstanding on such date (on a fully-diluted basis after giving effect to any
securities (other than the Warrants) convertible or exchangeable into Common
Stock) plus (II) the number of shares of Common Stock which the aggregate
offering price of the total number of New Securities so offered would have
purchased at such Current Market Price (such amount, with respect to any New
Derivative Securities, determined by multiplying the total number of shares of
Common Stock subject thereto by the exercise price of such New Derivative
Securities, and dividing the product so obtained by such Current Market
Price), and

(y) whose denominator shall be (I) the number of shares of Common Stock
outstanding on such date (on a fully-diluted basis after giving effect to any
securities (other than the Warrants) convertible or exchangeable into Common
Stock) plus (II) the number of additional shares of Common Stock to be issued
or distributed or receivable upon exercise of any such New Derivative
Security.

Such adjustment shall be made successively whenever any such New Securities
are issued. In determining whether any New Derivative Securities entitle the
holders to subscribe for or purchase shares of Common Stock at less than such
Current Market Price, and in determining the aggregate offering price of
shares of Common Stock so issued, there shall be taken into account any
consideration received by the Company for such Common Stock or New Derivative
Securities, the value of such consideration, if other than cash, to be
determined by the board of directors of the Company (the "Board of
Directors"), whose determination shall be conclusive and described in a
certificate filed with the records of corporate proceedings of the Company. If
any New Derivative Security to purchase or acquire Common Stock, the issuance
of which resulted in an adjustment in the Exercise Price pursuant to this
subsection (ii) shall expire and shall not have been exercised, the Exercise
Price shall immediately upon such expiration be recomputed to the Exercise
Price which would have been in effect had the adjustment of the Exercise Price
made upon the issuance of such New Derivative Security been made on the basis
of offering for subscription, purchase or issuance, as the case may be, only
of that number of shares of Common Stock actually purchased or issued upon the
actual exercise of such New Derivative Security.

(iii) In the event that the 30-day moving average closing price of the Common
Stock ending on the earlier of (A) the later of (1) the Effectiveness Date (as
defined in the Registration Rights Agreement), and (2) the nine-month
anniversary of the Closing Date (as defined in the Securities Purchase
Agreement, of even date herewith, among the Company, the Holder and certain
other Purchasers named therein), or (B) the one-year anniversary of the
Closing Date ((A) or (B) above, the "Reset Date"), is less than the Exercise
Price in effect immediately prior to the Reset Date, then the Exercise Price
shall be adjusted so that the Exercise Price immediately following the Reset

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Date shall equal such 30-day moving average closing price of the Common Stock.
Notwithstanding the foregoing, in no event shall the Exercise Price be
adjusted pursuant to this subsection (iii) below $1.00.

(iv) No adjustment in the Exercise Price shall be required unless the
adjustment would require an increase or decrease of at least 1% in the
Exercise Price then in effect; provided, however, that any adjustments that by
reason of this Section 6(a) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment.  All calculations
under this Section 6(a) shall be made to the nearest cent or nearest 1/100th
of a share.

(v) The Company from time to time may reduce the Exercise Price by any amount
for any period of time in the discretion of the Board of Directors. A
voluntary reduction of the Exercise Price does not change or adjust the
Exercise Price otherwise in effect for purposes of this Section 6(a).

(vi) In the event that, at any time as a result of an adjustment made pursuant
to Sections 6(a)(i) through 6(a)(iv) above, the Holder of any Warrant
thereafter surrendered for exercise shall become entitled to receive any
shares of the Company other than shares of the Common Stock, thereafter the
number of such other shares so receivable upon exercise of any such Warrant
shall be subject to adjustment from time to time in a manner and on terms as
nearly equivalent as practicable to the provisions with respect to the Common
Stock contained in Sections 6(a)(i) through 6(a)(v) above, and the other
provisions of this Section 6(a) with respect to the Common Stock shall apply
on like terms to any such other shares.

(b) In case of any reclassification of the Common Stock (other than in a
transaction to which Section 6(a)(i) applies), any consolidation of the
Company with, or merger of the Company into, any other entity, any merger of
another entity into the Company (other than a merger that does not result in
any reclassification, conversion, exchange or cancellation of outstanding
shares of Common Stock of the Company), any sale or transfer of all or
substantially all of the assets of the Company or any compulsory share
exchange, pursuant to which share exchange the Common Stock is converted into
other securities, cash or other property (any such reclassification,
consolidation, merger, sale, transfer or exchange shall be referred to herein
as a "Reorganization Transaction"), there shall thereafter be deliverable upon
exercise of any Warrant (in lieu of the number of shares of Common Stock
theretofore deliverable) the number of shares of stock or other securities or
property to which a holder of the number of shares of Common Stock that would
otherwise have been deliverable upon the exercise of such Warrant would have
been entitled upon such Reorganization Transaction if such Warrant had been
exercised in full immediately prior to such Reorganization Transaction.  In
case of any Reorganization Transaction, appropriate adjustment, as reasonably
determined in good faith by the Board of Directors shall be made in the
application of the provisions herein set forth with respect to the rights and
interests of the Holder so that the provisions set forth herein shall
thereafter be applicable, as nearly as possible, in relation to any such
shares or other securities or property thereafter deliverable upon exercise of
Warrants. The Company shall not effect any Reorganization Transaction unless
prior to or simultaneously with the consummation thereof the successor
corporation or other entity (if other than the Company) resulting from such
Reorganization Transaction or the corporation or other entity purchasing such
assets shall expressly assume, by a supplemental warrant or other
acknowledgment executed and delivered to the Holder, the obligation to deliver
to the Holder such shares of stock, securities or assets as, in accordance
with the foregoing provisions, such Holder may be entitled to purchase, and

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the due and punctual performance and observance of each and every covenant,
condition, obligation and liability under this Warrant to be performed and
observed by the Company in the manner prescribed herein. The provisions of
this Section 6(b) shall similarly apply to successive reclassifications,
consolidations, mergers, sales, transfers or share exchanges.

(c) If:

(i) the Company shall take any action which would require an adjustment in the
Exercise Price pursuant to Section 6(a); or

(ii) the Company shall authorize the granting to the holders of its Common
Stock generally of rights, warrants or options to subscribe for or purchase
any shares of any class or any other rights, warrants or options; or

(iii) there shall be any reclassification or change of the Common Stock (other
than a subdivision or combination of its outstanding Common Stock or a change
in par value) or any consolidation, merger or statutory share exchange to
which the Company is a party and for which approval of any stockholders of the
Company is required, or the sale or transfer of all or substantially all of
the assets of the Company; or

(iv) there shall be a voluntary or involuntary dissolution, liquidation or
winding up of the Company;

then, in each such case, the Company shall cause to be filed with the transfer
agent for the Warrants and shall cause to be mailed to each Holder at such
Holder's address as shown on the books of the transfer agent for the Warrants,
as promptly as possible, but at least 30 days prior to the applicable date
hereinafter specified, a notice stating (A) the date on which a record is to
be taken for the purpose of such dividend, distribution or granting of rights,
warrants or options, or, if a record is not to be taken, the date as of which
the holders of Common Stock of record to be entitled to such dividend,
distribution or rights, warrants or options are to be determined, or (B) the
date on which such reclassification, change, consolidation, merger, statutory
share exchange, sale, transfer, dissolution, liquidation or winding-up is
expected to become effective or occur, and the date as of which it is expected
that holders of Common Stock of record shall be entitled to exchange their
shares of Common Stock for securities or other property deliverable upon such
reclassification, change, consolidation, merger, statutory share exchange,
sale, transfer, dissolution, liquidation or winding up.  Failure to give such
notice or any defect therein shall not affect the legality or validity of the
proceedings described in this Section 6(c).

  (d) Whenever the Exercise Price is adjusted as herein provided, the Company
shall promptly file with the transfer agent for the Warrants a certificate of
an officer of the Company setting forth the Exercise Price after the
adjustment and setting forth a brief statement of the facts requiring such
adjustment and a computation thereof.  The Company shall promptly cause a
notice of the adjusted Exercise Price to be mailed to each Holder.

(e) In any case in which Section 6(a) provides that an adjustment shall become
effective immediately after a record date for an event and the date fixed for
such adjustment pursuant to Section 6(a) occurs after such record date but
before the occurrence of such event, the Company may defer until the actual
occurrence of such event (i) issuing to the Holder of any Warrants exercised
after such record date and before the occurrence of such event the additional
shares of Common Stock issuable upon such conversion by reason of the
adjustment required by such event over and above the Common Stock issuable

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upon such exercise before giving effect to such adjustment, and (ii) paying to
such holder any amount in cash in lieu of any fraction pursuant to Section
6(i).

(f) In case the Company shall take any action affecting the Common Stock,
other than actions described in this Section 6, which in the opinion of the
Board of Directors would materially adversely affect the exercise right of the
Holders, the Exercise Price may be adjusted, to the extent permitted by law,
in such manner, if any, and at such time, as the Board of Directors may
determine to be equitable in the circumstances.

(g) For the purpose of any computation under Section 2(b) or this Section 6,
the "Current Market Price" per share of Common Stock on any day shall mean:
(i) if the principal trading market for such securities is a national or
regional securities exchange, the closing price on such exchange on such day;
or (ii) if sales prices for shares of Common Stock are reported by the NASDAQ
National Market System (or a similar system then in use), the last reported
sales price (regular way) so reported on such day; or (iii) if neither (i) nor
(ii) above are applicable, and if bid and ask prices for shares of Common
Stock are reported in the over-the-counter market by NASDAQ (or, if not so
reported, by the National Quotation Bureau), the average of the high bid and
low ask prices so reported on such day. Notwithstanding the foregoing, if
there is no reported closing price, last reported sales price, or bid and ask
prices, as the case may be, for the day in question, then the Current Market
Price shall be determined as of the latest date prior to such day for which
such closing price, last reported sales price, or bid and ask prices, as the
case may be, are available, unless such securities have not been traded on an
exchange or in the over-the-counter market for 5 or more days immediately
prior to the day in question, in which case the Current Market Price shall be
determined by an Independent Financial Expert (and the costs of such
determination shall be bourne entirely by the Company).   An "Independent
Financial Expert" shall mean a reputable accounting, appraisal or investment
banking firm that is, in the reasonable judgment of the Board of Directors,
qualified to perform the task for which such firm has been engaged hereunder,
is nationally recognized and disinterested and Independent with respect to the
Company and its affiliates and is reasonably acceptable to the Holder.
"Independent" shall mean any person or entity that (A) is in fact independent,
(B) does not have any direct financial interest or any material indirect
financial interest in the Company or any of its subsidiaries, or in any
affiliate of the Company or any of its subsidiaries (other than as a result of
holding securities of the Company in trading accounts), and (C) is not an
officer, employee, promoter, trustee, partner, director or person performing
similar functions for the Company or any of its subsidiaries or any affiliate
of the Company or any of its subsidiaries.

(h) Upon each adjustment of the Exercise Price (other than an adjustment under
Section 6(a)(iii)), this Warrant shall thereafter evidence the right to
purchase, at the adjusted Exercise Price, that number of shares (calculated to
the nearest thousandth) obtained by dividing (i) the product obtained by
multiplying the number of shares purchasable upon exercise of this Warrant
prior to adjustment of the number of shares by the Exercise Price in effect
prior to adjustment of the Exercise Price, by (ii) the Exercise Price in
effect after such adjustment of the Exercise Price.

(i) The Company shall not be required to issue fractions of shares of Common
Stock or other capital stock of the Company upon the exercise of this Warrant.
If any fraction of a share would be issuable on the exercise of this Warrant
(or specified portions thereof), the Company shall purchase such fraction for

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an amount in cash equal to the same fraction of the Current Market Price of
such share of Common Stock on the date of exercise of this Warrant.

7. Transfer Taxes. The issuance of any shares or other securities upon the
exercise of this Warrant, and the delivery of certificates or other
instruments representing such shares or other securities, shall be made
without charge to the Holder for any tax or other charge in respect of such
issuance. The Company shall not, however, be required to pay any tax which may
be payable in respect of any transfer involved in the issue and delivery of
any certificate in a name other than that of the Holder and the Company shall
not be required to issue or deliver any such certificate unless and until the
person or persons requesting the issue thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the
Company that such tax has been paid.

8. Loss or Mutilation of Warrant. Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction, or mutilation of
any Warrant (and upon surrender of any Warrant if mutilated), and upon
reimbursement of the Company's reasonable incidental expenses, the Company
shall execute and deliver to the Holder thereof a new Warrant of like date,
tenor, and denomination.

9. No Rights as a Stockholder. The Holder of any Warrant shall not have,
solely on account of such status, any rights of a stockholder of the Company,
either at law or in equity, or to any notice of meetings of stockholders or of
any other proceedings of the Company, except as provided in this Warrant.

10. Governing Law.  This Warrant shall be construed in accordance with the
laws of the State of Texas applicable to contracts made and performed within
such State, without regard to principles of conflicts of law.

Dated: February __, 2005

CONSOLIDATED ENERGY, INC.

 By:
 David Guthrie,
 President

FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer
the attached Warrant.)

  FOR VALUE RECEIVED,        hereby sells, assigns, and transfers unto
__________________ a Warrant to purchase __________ shares of Common Stock,
par value $0.001 per share, of Consolidated Energy, Inc. (the "Company"),
together with all right, title, and interest therein, and does hereby
irrevocably constitute and appoint       attorney to transfer such Warrant on
the books of the Company, with full power of substitution.

 Dated:

 By:
  Signature

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 The signature on the foregoing Assignment must correspond to the name as
written upon the face of this Warrant in every particular, without alteration
or enlargement or any change whatsoever.

To:   Consolidated Energy, Inc.
9900 West Sample Road
Suite 300
Coral Springs, Florida  33065
Attention:  President

NOTICE OF EXERCISE

 The undersigned hereby exercises his or its rights to purchase _______
Warrant Shares covered by the within Warrant and tenders payment herewith in
the amount of $_________ by [tendering cash or delivering a certified check or
bank cashier's check, payable to the order of the Company] [surrendering
______ shares of Common Stock received upon exercise of the attached Warrant,
which shares have a Current Market Price equal to such payment] in accordance
with the terms thereof, and requests that certificates for such securities be
issued in the name of, and delivered to:

_______________________________________

_______________________________________

_______________________________________

(Print Name, Address and Social Security
or Tax Identification Number)

and, if such number of Warrant Shares shall not be all the Warrant Shares
covered by the within Warrant, that a new Warrant for the balance of the
Warrant Shares covered by the within Warrant be registered in the name of, and
delivered to, the undersigned at the address stated below.
 Dated:

 By:
  Print Name

   Signature
Address:

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