Document:

<PAGE>

                                                                    EXHIBIT 10.1

                                ABLE ENERGY, INC.
                    FORM OF INCENTIVE STOCK OPTION AGREEMENT

================================================================================

        THIS INCENTIVE STOCK OPTION AGREEMENT ("AGREEMENT") is made and entered
into as of the date set forth below, by and between ABLE ENERGY, INC., a
Delaware corporation (the "COMPANY"), and the employee of the Company named in
Section 1(b). ("OPTIONEE"):

        In consideration of the covenants herein set forth, the parties hereto
agree as follows:

        1.      OPTION INFORMATION.

                (a)     Date of Option:    ___________________

                (b)     Optionee:          ___________________

                (c)     Number of Shares:  ___________________

                (d)     Exercise Price:    ___________________

        2.      ACKNOWLEDGEMENTS.

                (a)     Optionee is an employee of the Company.

                (b)     The Board of Directors (the "BOARD" which term shall
        include an authorized committee of the Board of Directors) and
        shareholders of the Company have heretofore adopted a 2005 Incentive
        Stock Plan (the "PLAN"), pursuant to which this Option is being granted.

                (c)     The Board has authorized the granting to Optionee of an
        incentive stock option ("OPTION") as defined in Section 422 of the
        Internal Revenue Code of 1986, as amended, (the "CODE") to purchase
        shares of common stock of the Company ("STOCK") upon the terms and
        conditions hereinafter stated and pursuant to an exemption from
        registration under the Securities Act of 1933, as amended (the
        "SECURITIES ACT") provided by Section 4(2) thereunder.

        3.      SHARES; PRICE. The Company hereby grants to Optionee the right
to purchase, upon and subject to the terms and conditions herein stated, the
number of shares of Stock set forth in Section 1(c) above (the "SHARES") for
cash (or other consideration as is authorized under the Plan and acceptable to
the Board, in their sole and absolute discretion) at the price per Share set
forth in Section 1(d) above (the "EXERCISE PRICE"), such price being not less
than the fair market value per share of the Shares covered by this Option as of
the date hereof (unless Optionee is the owner of Stock possessing ten percent or
more of the total voting power or value of all outstanding Stock of

<PAGE>

the Company, in which case the Exercise Price shall be no less than 110% of the
fair market value of such Stock).

        4.      TERM OF OPTION; CONTINUATION OF EMPLOYMENT. This Option shall
expire, and all rights hereunder to purchase the Shares shall terminate five (5)
from the date hereof. This Option shall earlier terminate subject to Sections 7
and 8 hereof upon, and as of the date of, the termination of Optionee's
employment if such termination occurs prior to the end of such five (5) year
period. Nothing contained herein shall confer upon Optionee the right to the
continuation of his or her employment by the Company or to interfere with the
right of the Company to terminate such employment or to increase or decrease the
compensation of Optionee from the rate in existence at the date hereof.

        5.      VESTING OF OPTION. Subject to the provisions of Sections 7 and 8
hereof, this Option shall become exercisable during the term of Optionee's
employment in four (4) equal annual installments of twenty-five percent (25%) of
the Shares covered by this Option, the first installment to be exercisable on
the six (6) month anniversary of the date of this Option (the "Initial Vesting
Date"), with an additional twenty-five percent (25%) of such Shares becoming
exercisable on each of the three (3) successive twelve (12) month periods
following the Initial Vesting Date. The installments shall be cumulative (i.e.,
this option may be exercised, as to any or all Shares covered by an installment,
at any time or times after an installment becomes exercisable and until
expiration or termination of this option).

        6.      EXERCISE. This Option shall be exercised by delivery to the
Company of (a) written notice of exercise stating the number of Shares being
purchased (in whole shares only) and such other information set forth on the
form of Notice of Exercise attached hereto as Appendix A, (b) a check or cash in
the amount of the Exercise Price of the Shares covered by the notice (or such
other consideration as has been approved by the Board of Directors consistent
with the Plan) and (c) a written investment representation as provided for in
Section 13 hereof. This Option shall not be assignable or transferable, except
by will or by the laws of descent and distribution, and shall be exercisable
only by Optionee during his or her lifetime, except as provided in Section 8
hereof.

        7.      TERMINATION OF EMPLOYMENT. If Optionee shall cease to be
employed by the Company for any reason, whether voluntarily or involuntarily,
other than by his or her death, Optionee (or if the Optionee shall die after
such termination, but prior to such exercise date, Optionee's personal
representative or the person entitled to succeed to the Option) shall have the
right at any time within three (3) months following such termination of
employment or the remaining term of this Option, whichever is the lesser, to
exercise in whole or in part this Option to the extent, but only to the extent,
that this Option was exercisable as of the date of termination of employment and
had not previously been exercised; provided, however: (i) if Optionee is
permanently disabled (within the meaning of Section 22(e)(3) of the Code) at the
time of termination, the foregoing three (3) month period shall be extended to
six (6) months; or (ii) if Optionee is terminated "FOR CAUSE", or by the terms
of the Plan or this Option Agreement or by any employment agreement between the
Optionee and the Company, this Option shall automatically terminate as to all
Shares covered by this Option not exercised prior to termination. Unless earlier
terminated, all rights under this Option shall terminate in any event on the
expiration date of this Option as defined in Section 4 hereof.

                                      -2-
<PAGE>

        8.      DEATH OF OPTIONEE. If the Optionee shall die while in the employ
of the Company, Optionee's personal representative or the person entitled to
Optionee's rights hereunder may at any time within six (6) months after the date
of Optionee's death, or during the remaining term of this Option, whichever is
the lesser, exercise this Option and purchase Shares to the extent, but only to
the extent, that Optionee could have exercised this Option as of the date of
Optionee's death; provided, in any case, that this Option may be so exercised
only to the extent that this Option has not previously been exercised by
Optionee.

        9.      NO RIGHTS AS SHAREHOLDER. Optionee shall have no rights as a
shareholder with respect to the Shares covered by any installment of this Option
until the effective date of issuance of Shares following exercise of this
Option, and no adjustment will be made for dividends or other rights for which
the record date is prior to the date such stock certificate or certificates are
issued except as provided in Section 10 hereof.

        10.     RECAPITALIZATION. Subject to any required action by the
shareholders of the Company, the number of Shares covered by this Option, and
the Exercise Price thereof, shall be proportionately adjusted for any increase
or decrease in the number of issued shares resulting from a subdivision or
consolidation of shares or the payment of a stock dividend, or any other
increase or decrease in the number of such shares effected without receipt of
consideration by the Company; provided however that the conversion of any
convertible securities of the Company shall not be deemed having been "EFFECTED
WITHOUT RECEIPT OF CONSIDERATION BY THE COMPANY".

        In the event of a proposed dissolution or liquidation of the Company, a
merger or consolidation in which the Company is not the surviving entity, or a
sale of all or substantially all of the assets or capital stock of the Company
(collectively, a "REORGANIZATION"), unless otherwise provided by the Board, this
Option shall terminate immediately prior to such date as is determined by the
Board, which date shall be no later than the consummation of such
Reorganization. In such event, if the entity which shall be the surviving entity
does not tender to Optionee an offer, for which it has no obligation to do so,
to substitute for any unexercised Option a stock option or capital stock of such
surviving of such surviving entity, as applicable, which on an equitable basis
shall provide the Optionee with substantially the same economic benefit as such
unexercised Option, then the Board may grant to such Optionee, in its sole and
absolute discretion and without obligation, the right for a period commencing
thirty (30) days prior to and ending immediately prior to the date determined by
the Board pursuant hereto for termination of the Option or during the remaining
term of the Option, whichever is the lesser, to exercise any unexpired Option or
Options without regard to the installment provisions of Section 5; provided,
however, that such exercise shall be subject to the consummation of such
Reorganization.

        Subject to any required action by the shareholders of the Company, if
the Company shall be the surviving entity in any merger or consolidation, this
Option thereafter shall pertain to and apply to the securities to which a holder
of Shares equal to the Shares subject to this Option would have been entitled by
reason of such merger or consolidation, and the installment provisions of
Section 5 shall continue to apply.

        In the event of a change in the shares of the Company as presently
constituted, which is limited to a change of all of its authorized Stock without
par value into the same number of shares

                                      -3-
<PAGE>

of Stock with a par value, the shares resulting from any such change shall be
deemed to be the Shares within the meaning of this Option.

        To the extent that the foregoing adjustments relate to shares or
securities of the Company, such adjustments shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as
hereinbefore expressly provided, Optionee shall have no rights by reason of any
subdivision or consolidation of shares of Stock of any class or the payment of
any stock dividend or any other increase or decrease in the number of shares of
stock of any class, and the number and price of Shares subject to this Option
shall not be affected by, and no adjustments shall be made by reason of, any
dissolution, liquidation, merger, consolidation or sale of assets or capital
stock, or any issue by the Company of shares of stock of any class or securities
convertible into shares of stock of any class.

        The grant of this Option shall not affect in any way the right or power
of the Company to make adjustments, reclassifications, reorganizations or
changes in its capital or business structure or to merge, consolidate, dissolve
or liquidate or to sell or transfer all or any part of its business or assets.

        11.     ADDITIONAL CONSIDERATION. Should the Internal Revenue Service
determine that the Exercise Price established by the Board as the fair market
value per Share is less than the fair market value per Share as of the date of
Option grant, Optionee hereby agrees to tender such additional consideration, or
agrees to tender upon exercise of all or a portion of this Option, such fair
market value per Share as is determined by the Internal Revenue Service.

        12.     MODIFICATIONS, EXTENSION AND RENEWAL OF OPTIONS. The Board or
Committee, as described in the Plan, may modify, extend or renew this Option or
accept the surrender thereof (to the extent not theretofore exercised) and
authorize the granting of a new option in substitution therefore (to the extent
not theretofore exercised), subject at all times to the Plan, and Section 422 of
the Code. Notwithstanding the foregoing provisions of this Section 12, no
modification shall, without the consent of the Optionee, alter to the Optionee's
detriment or impair any rights of Optionee hereunder.

        13.     INVESTMENT INTENT; RESTRICTIONS ON TRANSFER.

                (a)     Optionee represents and agrees that if Optionee
        exercises this Option in whole or in part, Optionee will in each case
        acquire the Shares upon such exercise for the purpose of investment and
        not with a view to, or for resale in connection with, any distribution
        thereof; and that upon such exercise of this Option in whole or in part,
        Optionee (or any person or persons entitled to exercise this Option
        under the provisions of Sections 7 and 8 hereof) shall furnish to the
        Company a written statement to such effect, satisfactory to the Company
        in form and substance. If the Shares represented by this Option are
        registered under the Securities Act, either before or after the exercise
        of this Option in whole or in part, the Optionee shall be relieved of
        the foregoing investment representation and agreement and shall not be
        required to furnish the Company with the foregoing written statement.

                (b)     Optionee further represents that Optionee has had access
        to the financial statements or books and records of the Company, has had
        the opportunity to ask questions

                                      -4-
<PAGE>

        of the Company concerning its business, operations and financial
        condition, and to obtain additional information reasonably necessary to
        verify the accuracy of such information.

                (c)     Unless and until the Shares represented by this Option
        are registered under the Securities Act, all certificates representing
        the Shares and any certificates subsequently issued in substitution
        therefor and any certificate for any securities issued pursuant to any
        stock split, share reclassification, stock dividend or other similar
        capital event shall bear legends in substantially the following form:

        THESE SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER
        THE SECURITIES ACT OF 1933 (THE 'SECURITIES ACT') OR UNDER THE
        APPLICABLE OR SECURITIES LAWS OF ANY STATE. NEITHER THESE SECURITIES NOR
        ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
        DISPOSED OF IN THE ABSENCE OF REGISTRATION UNDER THE SECURITIES ACT OR
        ANY APPLICABLE SECURITIES LAWS OF ANY STATE, UNLESS PURSUANT TO
        EXEMPTIONS THEREFROM.

        THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO
        THAT CERTAIN INCENTIVE STOCK OPTION AGREEMENT DATED ____________ BETWEEN
        THE COMPANY AND THE ISSUEE WHICH RESTRICTS THE TRANSFER OF THESE SHARES
        WHICH ARE SUBJECT TO REPURCHASE BY THE COMPANY UNDER CERTAIN CONDITIONS.

such other legend or legends as the Company and its counsel deem necessary or
appropriate. Appropriate stop transfer instructions with respect to the Shares
have been placed with the Company's transfer agent.

        14.     EFFECTS OF EARLY DISPOSITION. Optionee understands that if an
Optionee disposes of shares acquired hereunder within two (2) years after the
date of this Option or within one (1) year after the date of issuance of such
shares to Optionee, such Optionee will be treated for income tax purposes as
having received ordinary income at the time of such disposition of an amount
generally measured by the difference between the purchase price and the fair
market value of such stock on the date of exercise, subject to adjustment for
any tax previously paid, in addition to any tax on the difference between the
sales price and Optionee's adjusted cost basis in such shares. The foregoing
amount may be measured differently if Optionee is an officer, director or ten
percent holder of the Company. Optionee agrees to notify the Company within ten
(10) working days of any such disposition.

        15.     STAND-OFF AGREEMENT. Optionee agrees that in connection with any
registration of the Company's securities under the Securities Act, and upon the
request of the Company or any underwriter managing an underwritten offering of
the Company's securities, Optionee shall not sell, short any sale of, loan,
grant an option for, or otherwise dispose of any of the Shares (other than
Shares included in the offering) without the prior written consent of the
Company or such managing underwriter, as applicable, for a period of at least
one year following the effective date of registration of such offering.

                                      -5-
<PAGE>

        16.     RESTRICTION UPON TRANSFER. The Shares may not be sold,
transferred or otherwise disposed of and shall not be pledged or otherwise
hypothecated by the Optionee except as hereinafter provided.

                (a)     REPURCHASE RIGHT ON TERMINATION OTHER THAN FOR CAUSE.
        For the purposes of this Section, a "REPURCHASE EVENT" shall mean an
        occurrence of one of (i) termination of Optionee's employment by the
        Company, voluntary or involuntary and with or without cause; (ii)
        retirement or death of Optionee; (iii) bankruptcy of Optionee, which
        shall be deemed to have occurred as of the date on which a voluntary or
        involuntary petition in bankruptcy is filed with a court of competent
        jurisdiction; (iv) dissolution of the marriage of Optionee, to the
        extent that any of the Shares are allocated as the sole and separate
        property of Optionee's spouse pursuant thereto (in which case this
        Section shall only apply to the Shares so affected); or (v) any
        attempted transfer by the Optionee of Shares, or any interest therein,
        in violation of this Agreement. Upon the occurrence of a Repurchase
        Event, the Company shall have the right (but not an obligation) to
        repurchase all or any portion of the Shares of Optionee at a price equal
        to the fair value of the Shares as of the date of the Repurchase Event.

                (b)     REPURCHASE RIGHT ON TERMINATION FOR CAUSE. In the event
        Optionee's employment is terminated by the Company "FOR CAUSE", then the
        Company shall have the right (but not an obligation) to repurchase
        Shares of Optionee at a price equal to the Exercise Price. Such right of
        the Company to repurchase Shares shall apply to 100% of the Shares for
        one (1) year from the date of this Agreement; and shall thereafter lapse
        at the rate of twenty percent (20%) of the Shares on each anniversary of
        the date of this Agreement. In addition, the Company shall have the
        right, in the sole discretion of the Board and without obligation, to
        repurchase upon termination for cause all or any portion of the Shares
        of Optionee, at a price equal to the fair value of the Shares as of the
        date of termination, which right is not subject to the foregoing lapsing
        of rights. In the event the Company elects to repurchase the Shares, the
        stock certificates representing the same shall forthwith be returned to
        the Company for cancellation.

                (c)     EXERCISE OF REPURCHASE RIGHT. Any Repurchase Right under
        Paragraphs 16(a) or 16(b) shall be exercised by giving notice of
        exercise as provided herein to Optionee or the estate of Optionee, as
        applicable. Such right shall be exercised, and the repurchase price
        thereunder shall be paid, by the Company within a ninety (90) day period
        beginning on the date of notice to the Company of the occurrence of such
        Repurchase Event (except in the case of termination of employment or
        retirement, where such option period shall begin upon the occurrence of
        the Repurchase Event). Such repurchase price shall be payable only in
        the form of cash (including a check drafted on immediately available
        funds) or cancellation of purchase money indebtedness of the Optionee
        for the Shares. If the Company can not purchase all such Shares because
        it is unable to meet the financial tests set forth in Delaware and/or
        Delaware corporation law, the Company shall have the right to purchase
        as many Shares as it is permitted to purchase under such sections. Any
        Shares not purchased by the Company hereunder shall no longer be subject
        to the provisions of this Section 16.

                                      -6-
<PAGE>

                (d)     RIGHT OF FIRST REFUSAL. In the event Optionee desires to
        transfer any Shares during his or her lifetime, Optionee shall first
        offer to sell such Shares to the Company. Optionee shall deliver to the
        Company written notice of the intended sale, such notice to specify the
        number of Shares to be sold, the proposed purchase price and terms of
        payment, and grant the Company an option for a period of thirty days
        following receipt of such notice to purchase the offered Shares upon the
        same terms and conditions. To exercise such option, the Company shall
        give notice of that fact to Optionee within the thirty (30) day notice
        period and agree to pay the purchase price in the manner provided in the
        notice. If the Company does not purchase all of the Shares so offered
        during foregoing option period, Optionee shall be under no obligation to
        sell any of the offered Shares to the Company, but may dispose of such
        Shares in any lawful manner during a period of one hundred and eighty
        (180) days following the end of such notice period, except that Optionee
        shall not sell any such Shares to any other person at a lower price or
        upon more favorable terms than those offered to the Company.

                (e)     ACCEPTANCE OF RESTRICTIONS. Acceptance of the Shares
        shall constitute the Optionee's agreement to such restrictions and the
        legending of his certificates with respect thereto. Notwithstanding such
        restrictions, however, so long as the Optionee is the holder of the
        Shares, or any portion thereof, he shall be entitled to receive all
        dividends declared on and to vote the Shares and to all other rights of
        a shareholder with respect thereto.

                (f)     PERMITTED TRANSFERS. Notwithstanding any provisions in
        this Section 16 to the contrary, the Optionee may transfer Shares
        subject to this Agreement to his or her parents, spouse, children, or
        grandchildren, or a trust for the benefit of the Optionee or any such
        transferee(s); provided, that such permitted transferee(s) shall hold
        the Shares subject to all the provisions of this Agreement (all
        references to the Optionee herein shall in such cases refer mutatis
        mutandis to the permitted transferee, except in the case of clause (iv)
        of Section 16(a) wherein the permitted transfer shall be deemed to be
        rescinded); and provided further, that notwithstanding any other
        provisions in this Agreement, a permitted transferee may not, in turn,
        make permitted transfers without the written consent of the Optionee and
        the Company.

        17.     NOTICES. Any notice required to be given pursuant to this Option
or the Plan shall be in writing and shall be deemed to be delivered upon receipt
or, in the case of notices by the Company, five (5) days after deposit in the
U.S. mail, postage prepaid, addressed to Optionee at the address last provided
to the Company by Optionee for his or her employee records.

        18.     AGREEMENT SUBJECT TO PLAN; APPLICABLE LAW. This Option is made
pursuant to the Plan and shall be interpreted to comply therewith. A copy of
such Plan is available to Optionee, at no charge, at the principal office of the
Company. Any provision of this Option inconsistent with the Plan shall be
considered void and replaced with the applicable provision of the Plan. This
Option has been granted, executed and delivered in the State of Delaware, and
the interpretation and enforcement shall be governed by the laws thereof and
subject to the exclusive jurisdiction of the courts therein.

                                      -7-
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have executed this Option as of
the date first above written.

                        COMPANY:              ABLE ENERGY, INC.,
                                              a Delaware corporation

                                              By: _________________________
                                              Name: _______________________
                                              Title: ______________________

                        OPTIONEE:
                                              By:   _______________________
                                                    (SIGNATURE)
                                              Name: _______________________

             (ONE OF THE FOLLOWING, AS APPROPRIATE, SHALL BE SIGNED)

I certify that as of the date hereof        By his or her signature, the spouse
I am unmarried                              of Optionee hereby agrees to be
                                            bound by the provisions of the
                                            foregoing INCENTIVE STOCK OPTION
                                            AGREEMENT

____________________________________        ____________________________________
Optionee                                    Spouse of Optionee

                                      -8-
<PAGE>

                                   APPENDIX A

                               NOTICE OF EXERCISE

ABLE ENERGY, INC.

        Re: Incentive Stock Option

        Notice is hereby given pursuant to Section 6 of my Incentive Stock
Option Agreement that I elect to purchase the number of shares set forth below
at the exercise price set forth in my option agreement:

        Incentive Stock Option Agreement dated: ____________

        Number of shares being purchased: ____________

        Exercise Price: $____________

        A check in the amount of the aggregate price of the shares being
purchased is attached.

        I hereby confirm that such shares are being acquired by me for my own
account for investment purposes, and not with a view to, or for resale in
connection with, any distribution thereof. I will not sell or dispose of my
Shares in violation of the Securities Act of 1933, as amended, or any applicable
federal or state securities laws. Further, I understand that the exemption from
taxable income at the time of exercise is dependent upon my holding such stock
for a period of at least one year from the date of exercise and two years from
the date of grant of the Option.

        I understand that the certificate representing the Option Shares will
bear a restrictive legend within the contemplation of the Securities Act and as
required by such other state or federal law or regulation applicable to the
issuance or delivery of the Option Shares.

        I agree to provide to the Company such additional documents or
information as may be required pursuant to the Company's 2005 Incentive Stock
Plan.

                                                  By:   _____________________
                                                           (SIGNATURE)
                                                  Name: _____________________<PAGE>

                                                                    EXHIBIT 10.2

                                ABLE ENERGY, INC.
              FORM OF EMPLOYEE NONSTATUTORY STOCK OPTION AGREEMENT

================================================================================

        THIS EMPLOYEE NONSTATUTORY STOCK OPTION AGREEMENT ("AGREEMENT") is made
and entered into as of the date set forth below, by and between ABLE ENERGY,
INC., a Delaware corporation (the "COMPANY"), and the following employee of the
Company ("OPTIONEE"):

        In consideration of the covenants herein set forth, the parties hereto
agree as follows:

        1.      OPTION INFORMATION.

                (a)     Date of Option:    ____________________
                (b)     Optionee:          ____________________
                (c)     Number of Shares:  ____________________
                (d)     Exercise Price:    ____________________

        2.      ACKNOWLEDGEMENTS.

                (a)     Optionee is an employee of the Company.

                (b)     The Board of Directors (the "BOARD" which term shall
        include an authorized committee of the Board of Directors) and
        shareholders of the Company have heretofore adopted a 2005 Incentive
        Stock Plan (the "PLAN"), pursuant to which this Option is being granted;
        and

                (c)     The Board has authorized the granting to Optionee of a
        nonstatutory stock option ("OPTION") to purchase shares of common stock
        of the Company ("STOCK") upon the terms and conditions hereinafter
        stated and pursuant to an exemption from registration under the
        Securities Act of 1933, as amended (the "SECURITIES ACT") provided by
        Section 4(2) thereunder.

        3.      SHARES; PRICE. Company hereby grants to Optionee the right to
purchase, upon and subject to the terms and conditions herein stated, the number
of shares of Stock set forth in Section 1(c) above (the "SHARES") for cash (or
other consideration as is authorized under the Plan and acceptable to the Board
of Directors of the Company, in their sole and absolute discretion) at the price
per Share set forth in Section 1(d) above (the "EXERCISE PRICE"), such price
being not less than eighty-five percent (85%) of the fair market value per share
of the Shares covered by this Option as of the date hereof.

        4.      TERM OF OPTION; CONTINUATION OF SERVICE. This Option shall
expire, and all rights hereunder to purchase the Shares shall terminate, five
(5) years from the date hereof. This Option shall earlier terminate subject to
Sections 7 and 8 hereof upon, and as of the date of, the termination of
Optionee's employment if such termination occurs prior to the end of such five
(5) year period. Nothing contained herein shall confer upon Optionee the right
to the

                                       1
<PAGE>

continuation of his or her employment by the Company or to interfere with the
right of the Company to terminate such employment or to increase or decrease the
compensation of Optionee from the rate in existence at the date hereof.

        5.      VESTING OF OPTION. Subject to the provisions of Sections 7 and 8
hereof, this Option shall become exercisable during the term of Optionee's
employment in five (5) equal annual installments of twenty percent (20%) of the
Shares covered by this Option, the first installment to be exercisable on the
first anniversary of the date of this Option, with an additional twenty percent
(20%) of such Shares becoming exercisable on each of the four (4) successive
anniversary dates. The installments shall be cumulative (i.e., this option may
be exercised, as to any or all shares covered by an installment, at any time or
times after an installment becomes exercisable and until expiration or
termination of this option).

        6.      EXERCISE. This Option shall be exercised by delivery to the
Company of (a) written notice of exercise stating the number of Shares being
purchased (in whole shares only) and such other information set forth on the
form of Notice of Exercise attached hereto as APPENDIX A, (b) a check or cash in
the amount of the Exercise Price of the Shares covered by the notice (or such
other consideration as has been approved by the Board of Directors consistent
with the Plan) and (c) a written investment representation as provided for in
Section 13 hereof. This Option shall not be assignable or transferable, except
by will or by the laws of descent and distribution, and shall be exercisable
only by Optionee during his or her lifetime, except as provided in Section 8
hereof.

        7.      TERMINATION OF EMPLOYMENT. If Optionee shall cease to be
employed by the Company for any reason, whether voluntarily or involuntarily,
other than by his or her death, Optionee (or if the Optionee shall die after
such termination, but prior to such exercise date, Optionee's personal
representative or the person entitled to succeed to the Option) shall have the
right at any time within three (3) months following such termination of
employment or the remaining term of this Option, whichever is the lesser, to
exercise in whole or in part this Option to the extent, but only to the extent,
that this Option was exercisable as of the date of termination of employment and
had not previously been exercised; provided, however: (i) if Optionee is
permanently disabled (within the meaning of Section 22(e)(3) of the Code) at the
time of termination, the foregoing three (3) month period shall be extended to
six (6) months; or (ii) if Optionee is terminated "for cause" as that term is
defined under Title 53 of the Delaware Revised Statutes and case law related
thereto, or by the terms of the Plan or this Option Agreement or by any
employment agreement between the Optionee and the Company, this Option shall
automatically terminate as to all Shares covered by this Option not exercised
prior to termination.

        Unless earlier terminated, all rights under this Option shall terminate
in any event on the expiration date of this Option as defined in Section 4
hereof.

        8.      DEATH OF OPTIONEE. If the Optionee shall die while in the employ
of the Company, Optionee's personal representative or the person entitled to
Optionee's rights hereunder may at any time within six (6) months after the date
of Optionee's death, or during the remaining term of this Option, whichever is
the lesser, exercise this Option and purchase

                                       2
<PAGE>

Shares to the extent, but only to the extent, that Optionee could have exercised
this Option as of the date of Optionee's death; provided, in any case, that this
Option may be so exercised only to the extent that this Option has not
previously been exercised by Optionee.

        9.      NO RIGHTS AS SHAREHOLDER. Optionee shall have no rights as a
shareholder with respect to the Shares covered by any installment of this Option
until the effective date of issuance of the Shares following exercise of this
Option, and no adjustment will be made for dividends or other rights for which
the record date is prior to the date such stock certificate or certificates are
issued except as provided in Section 10 hereof.

        10.     RECAPITALIZATION. Subject to any required action by the
shareholders of the Company, the number of Shares covered by this Option, and
the Exercise Price thereof, shall be proportionately adjusted for any increase
or decrease in the number of issued shares resulting from a subdivision or
consolidation of shares or the payment of a stock dividend, or any other
increase or decrease in the number of such shares effected without receipt of
consideration by the Company; provided however that the conversion of any
convertible securities of the Company shall not be deemed having been "effected
without receipt of consideration by the Company".

        In the event of a proposed dissolution or liquidation of the Company, a
merger or consolidation in which the Company is not the surviving entity, or a
sale of all or substantially all of the assets or capital stock of the Company
(collectively, a "REORGANIZATION"), unless otherwise provided by the Board, this
Option shall terminate immediately prior to such date as is determined by the
Board, which date shall be no later than the consummation of such
Reorganization. In such event, if the entity which shall be the surviving entity
does not tender to Optionee an offer, for which it has no obligation to do so,
to substitute for any unexercised Option a stock option or capital stock of such
surviving of such surviving entity, as applicable, which on an equitable basis
shall provide the Optionee with substantially the same economic benefit as such
unexercised Option, then the Board may grant to such Optionee, in its sole and
absolute discretion and without obligation, the right for a period commencing
thirty (30) days prior to and ending immediately prior to the date determined by
the Board pursuant hereto for termination of the Option or during the remaining
term of the Option, whichever is the lesser, to exercise any unexpired Option or
Options without regard to the installment provisions of Section 5; provided,
however, that such exercise shall be subject to the consummation of such
Reorganization.

        Subject to any required action by the shareholders of the Company, if
the Company shall be the surviving entity in any merger or consolidation, this
Option thereafter shall pertain to and apply to the securities to which a holder
of Shares equal to the Shares subject to this Option would have been entitled by
reason of such merger or consolidation, and the installment provisions of
Section 5 shall continue to apply.

        In the event of a change in the shares of the Company as presently
constituted, which is limited to a change of all of its authorized Stock without
par value into the same number of shares of Stock with a par value, the shares
resulting from any such change shall be deemed to be the Shares within the
meaning of this Option.

                                       3
<PAGE>

        To the extent that the foregoing adjustments relate to shares or
securities of the Company, such adjustments shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as
hereinbefore expressly provided, Optionee shall have no rights by reason of any
subdivision or consolidation of shares of Stock of any class or the payment of
any stock dividend or any other increase or decrease in the number of shares of
stock of any class, and the number and price of Shares subject to this Option
shall not be affected by, and no adjustments shall be made by reason of, any
dissolution, liquidation, merger, consolidation or sale of assets or capital
stock, or any issue by the Company of shares of stock of any class or securities
convertible into shares of stock of any class.

        The grant of this Option shall not affect in any way the right or power
of the Company to make adjustments, reclassifications, reorganizations or
changes in its capital or business structure or to merge, consolidate, dissolve
or liquidate or to sell or transfer all or any part of its business or assets.

        11.     TAXATION UPON EXERCISE OF OPTION. Optionee understands that,
upon exercise of this Option, Optionee will recognize income, for Federal and
state income tax purposes, in an amount equal to the amount by which the fair
market value of the Shares, determined as of the date of exercise, exceeds the
Exercise Price. The acceptance of the Shares by Optionee shall constitute an
agreement by Optionee to report such income in accordance with then applicable
law and to cooperate with Company in establishing the amount of such income and
corresponding deduction to the Company for its income tax purposes. Withholding
for federal or state income and employment tax purposes will be made, if and as
required by law, from Optionee's then current compensation, or, if such current
compensation is insufficient to satisfy withholding tax liability, the Company
may require Optionee to make a cash payment to cover such liability as a
condition of the exercise of this Option.

        12.     MODIFICATION, EXTENSION AND RENEWAL OF OPTIONS. The Board or
Committee, as described in the Plan, may modify, extend or renew this Option or
accept the surrender thereof (to the extent not theretofore exercised) and
authorize the granting of a new option in substitution therefore (to the extent
not theretofore exercised), subject at all times to the Plan, the Code and the
Delaware Securities Rules. Notwithstanding the foregoing provisions of this
Section 12, no modification shall, without the consent of the Optionee, alter to
the Optionee's detriment or impair any rights of Optionee hereunder.

        13.     INVESTMENT INTENT; RESTRICTIONS ON TRANSFER.

                (a)     Optionee represents and agrees that if Optionee
        exercises this Option in whole or in part, Optionee will in each case
        acquire the Shares upon such exercise for the purpose of investment and
        not with a view to, or for resale in connection with, any distribution
        thereof; and that upon such exercise of this Option in whole or in part,
        Optionee (or any person or persons entitled to exercise this Option
        under the provisions of Sections 7 and 8 hereof) shall furnish to the
        Company a written

                                       4
<PAGE>

        statement to such effect, satisfactory to the Company in form and
        substance. If the Shares represented by this Option are registered under
        the Securities Act, either before or after the exercise of this Option
        in whole or in part, the Optionee shall be relieved of the foregoing
        investment representation and agreement and shall not be required to
        furnish the Company with the foregoing written statement.

                (b)     Optionee further represents that Optionee has had access
        to the financial statements or books and records of the Company, has had
        the opportunity to ask questions of the Company concerning its business,
        operations and financial condition, and to obtain additional information
        reasonably necessary to verify the accuracy of such information

                (c)     Unless and until the Shares represented by this Option
        are registered under the Securities Act, all certificates representing
        the Shares and any certificates subsequently issued in substitution
        therefor and any certificate for any securities issued pursuant to any
        stock split, share reclassification, stock dividend or other similar
        capital event shall bear legends in substantially the following form:

        THESE SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER
        THE SECURITIES ACT OF 1933 (THE 'SECURITIES ACT') OR UNDER THE
        APPLICABLE OR SECURITIES LAWS OF ANY STATE. NEITHER THESE SECURITIES NOR
        ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
        DISPOSED OF IN THE ABSENCE OF REGISTRATION UNDER THE SECURITIES ACT OR
        ANY APPLICABLE SECURITIES LAWS OF ANY STATE, UNLESS PURSUANT TO
        EXEMPTIONS THEREFROM.

        THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT TO
        THAT CERTAIN NONSTATUTORY STOCK OPTION AGREEMENT DATED ____________
        BETWEEN THE COMPANY AND THE ISSUEE WHICH RESTRICTS THE TRANSFER OF THESE
        SHARES WHICH ARE SUBJECT TO REPURCHASE BY THE COMPANY UNDER CERTAIN
        CONDITIONS.

and/or such other legend or legends as the Company and its counsel deem
necessary or appropriate. Appropriate stop transfer instructions with respect to
the Shares have been placed with the Company's transfer agent.

        14.     STAND-OFF AGREEMENT. Optionee agrees that, in connection with
any registration of the Company's securities under the Securities Act, and upon
the request of the Company or any underwriter managing an underwritten offering
of the Company's securities, Optionee shall not sell, short any sale of, loan,
grant an option for, or otherwise dispose of any of the Shares (other than
Shares included in the offering) without the prior written consent of the
Company or such managing underwriter, as applicable, for a period of at least
one year following the effective date of registration of such offering.

                                       5
<PAGE>

        15.     RESTRICTION UPON TRANSFER. The Shares may not be sold,
transferred or otherwise disposed of and shall not be pledged or otherwise
hypothecated by the Optionee except as hereinafter provided.

                (a)     Repurchase Right on Termination Other Than for Cause.
        For the purposes of this Section, a "REPURCHASE EVENT" shall mean an
        occurrence of one of (i) termination of Optionee's employment by the
        Company, voluntary or involuntary and with or without cause; (ii)
        retirement or death of Optionee; (iii) bankruptcy of Optionee, which
        shall be deemed to have occurred as of the date on which a voluntary or
        involuntary petition in bankruptcy is filed with a court of competent
        jurisdiction; (iv) dissolution of the marriage of Optionee, to the
        extent that any of the Shares are allocated as the sole and separate
        property of Optionee's spouse pursuant thereto (in which case, this
        Section shall only apply to the Shares so affected); or (v) any
        attempted transfer by the Optionee of Shares, or any interest therein,
        in violation of this Agreement. Upon the occurrence of a Repurchase
        Event, the Company shall have the right (but not an obligation) to
        repurchase all or any portion of the Shares of Optionee at a price equal
        to the fair value of the Shares as of the date of the Repurchase Event.

                (b)     Repurchase Right on Termination for Cause. In the event
        Optionee's employment is terminated by the Company "for cause", then the
        Company shall have the right (but not an obligation) to repurchase
        Shares of Optionee at a price equal to the Exercise Price. Such right of
        the Company to repurchase Shares shall apply to 100% of the Shares for
        one (1) year from the date of this Agreement; and shall thereafter lapse
        at the rate of twenty percent (20%) of the Shares on each anniversary of
        the date of this Agreement. In addition, the Company shall have the
        right, in the sole discretion of the Board and without obligation, to
        repurchase upon termination for cause all or any portion of the Shares
        of Optionee, at a price equal to the fair value of the Shares as of the
        date of termination, which right is not subject to the foregoing lapsing
        of rights. In the event the Company elects to repurchase the Shares, the
        stock certificates representing the same shall forthwith be returned to
        the Company for cancellation.

                (c)     Exercise of Repurchase Right. Any Repurchase Right under
        Paragraphs 15(a) or 15(b) shall be exercised by giving notice of
        exercise as provided herein to Optionee or the estate of Optionee, as
        applicable. Such right shall be exercised, and the repurchase price
        thereunder shall be paid, by the Company within a ninety (90) day period
        beginning on the date of notice to the Company of the occurrence of such
        Repurchase Event (except in the case of termination of employment or
        retirement, where such option period shall begin upon the occurrence of
        the Repurchase Event). Such repurchase price shall be payable only in
        the form of cash (including a check drafted on immediately available
        funds) or cancellation of purchase money indebtedness of the Optionee
        for the Shares. If the Company can not purchase all such Shares because
        it is unable to meet the financial tests set forth in the Delaware
        and/or Delaware corporation law, the Company shall have the right to
        purchase as

                                       6
<PAGE>

        many Shares as it is permitted to purchase under such sections. Any
        Shares not purchased by the Company hereunder shall no longer be subject
        to the provisions of this Section 15.

                (d)     Right of First Refusal. In the event Optionee desires to
        transfer any Shares during his or her lifetime, Optionee shall first
        offer to sell such Shares to the Company. Optionee shall deliver to the
        Company written notice of the intended sale, such notice to specify the
        number of Shares to be sold, the proposed purchase price and terms of
        payment, and grant the Company an option for a period of thirty days
        following receipt of such notice to purchase the offered Shares upon the
        same terms and conditions. To exercise such option, the Company shall
        give notice of that fact to Optionee within the thirty (30) day notice
        period and agree to pay the purchase price in the manner provided in the
        notice. If the Company does not purchase all of the Shares so offered
        during foregoing option period, Optionee shall be under no obligation to
        sell any of the offered Shares to the Company, but may dispose of such
        Shares in any lawful manner during a period of one hundred and eighty
        (180) days following the end of such notice period, except that Optionee
        shall not sell any such Shares to any other person at a lower price or
        upon more favorable terms than those offered to the Company.

                (e)     Acceptance of Restrictions. Acceptance of the Shares
        shall constitute the Optionee's agreement to such restrictions and the
        legending of his certificates with respect thereto. Notwithstanding such
        restrictions, however, so long as the Optionee is the holder of the
        Shares, or any portion thereof, he shall be entitled to receive all
        dividends declared on and to vote the Shares and to all other rights of
        a shareholder with respect thereto.

                (f)     Permitted Transfers. Notwithstanding any provisions in
        this Section 15 to the contrary, the Optionee may transfer Shares
        subject to this Agreement to his or her parents, spouse, children, or
        grandchildren, or a trust for the benefit of the Optionee or any such
        transferee(s); provided, that such permitted transferee(s) shall hold
        the Shares subject to all the provisions of this Agreement (all
        references to the Optionee herein shall in such cases refer mutatis
        mutandis to the permitted transferee, except in the case of clause (iv)
        of Section 15(a) wherein the permitted transfer shall be deemed to be
        rescinded); and provided further, that notwithstanding any other
        provisions in this Agreement, a permitted transferee may not, in turn,
        make permitted transfers without the written consent of the Optionee and
        the Company.

                (g)     Release of Restrictions on Shares. All other
        restrictions under this Section 15 shall terminate five (5) years
        following the date of this Agreement, or when the Company's securities
        are publicly traded, whichever occurs earlier.

        16.     NOTICES. Any notice required to be given pursuant to this Option
or the Plan shall be in writing and shall be deemed to be delivered upon receipt
or, in the case of notices

                                       7
<PAGE>

by the Company, five (5) days after deposit in the U.S. mail, postage prepaid,
addressed to Optionee at the address last provided by Optionee for his or her
employee records.

        17.     AGREEMENT SUBJECT TO PLAN; APPLICABLE LAW. This Option is made
pursuant to the Plan and shall be interpreted to comply therewith. A copy of
such Plan is available to Optionee, at no charge, at the principal office of the
Company. Any provision of this Option inconsistent with the Plan shall be
considered void and replaced with the applicable provision of the Plan. This
Option has been granted, executed and delivered in the State of Delaware, and
the interpretation and enforcement shall be governed by the laws thereof and
subject to the exclusive jurisdiction of the courts therein.

        IN WITNESS WHEREOF, the parties hereto have executed this Option as of
the date first above written.

                        COMPANY:              ABLE ENERGY, INC.,
                                              a Delaware corporation

                                              By: _________________________
                                              Name: _______________________
                                              Title: ______________________

                        OPTIONEE:
                                              By:   _______________________
                                                    (SIGNATURE)
                                              Name: _______________________

             (ONE OF THE FOLLOWING, AS APPROPRIATE, SHALL BE SIGNED)

I certify that as of the date hereof        By his or her signature, the spouse
I am unmarried                              of Optionee hereby agrees to be
                                            bound by the provisions of the
                                            foregoing INCENTIVE STOCK OPTION
                                            AGREEMENT

____________________________________        ____________________________________
Optionee                                    Spouse of Optionee

                                       8

<PAGE>

                                   APPENDIX A

                               NOTICE OF EXERCISE

Able Energy, Inc.
198 Green Pond Road
Rockaway, New Jersey 07866

        Re: Nonstatutory Stock Option

        Notice is hereby given pursuant to Section 6 of my Nonstatutory Stock
Option Agreement that I elect to purchase the number of shares set forth below
at the exercise price set forth in my option agreement:

        Nonstatutory Stock Option Agreement dated: ____________

        Number of shares being purchased: ____________

        Exercise Price: $____________

        A check in the amount of the aggregate price of the shares being
purchased is attached.

        I hereby confirm that such shares are being acquired by me for my own
account for investment purposes, and not with a view to, or for resale in
connection with, any distribution thereof. I will not sell or dispose of my
Shares in violation of the Securities Act of 1933, as amended, or any applicable
federal or state securities laws. Further, I understand that the exemption from
taxable income at the time of exercise is dependent upon my holding such stock
for a period of at least one year from the date of exercise and two years from
the date of grant of the Option.

        I understand that the certificate representing the Option Shares will
bear a restrictive legend within the contemplation of the Securities Act and as
required by such other state or federal law or regulation applicable to the
issuance or delivery of the Option Shares.

        I agree to provide to the Company such additional documents or
information as may be required pursuant to the Company's 2005 Incentive Stock
Plan.

                                               By:   _______________________
                                                     (SIGNATURE)
                                               Name: _______________________

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]